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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: 811-04338
EAGLE CAPITAL APPRECIATION FUND
(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
RICHARD J. ROSSI, 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: October 31, 2011
Table of Contents
Item 1. Reports to Shareholders
Table of Contents
Annual Report
and Investment Performance Review for the fiscal year ended October 31, 2011
Eagle Capital Appreciation Fund Eagle Growth & Income Fund Eagle International Equity Fund Eagle Investment Grade Bond 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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Dear Fellow Shareholders:
I am pleased to present the annual report and investment-performance review of the Eagle Family of Funds for the fiscal year that ended October 31, 2011 (the “reporting period”).
This has been an eventful year. Equity markets rallied through the spring but have pulled back since then on a seemingly relentless stream of mixed headlines, from both here in the United States and abroad. Political gridlock in Washington, D.C., created a great deal of uncertainty over the summer and, we believe, was the primary reason Standard & Poor’s downgraded U.S. debt in August. Meanwhile, political instability around the Mediterranean—specifically, debt issues in southern Europe and the “Arab Spring” democracy movements that spread into the fall—has left markets on edge.
The fixed-income environment has had its challenges, too. The New Year brought with it concerns that long-term low interest rates inevitably would lead to near-term inflation. And the summer’s rancorous federal budget debate, and the succeeding S&P downgrade, left some wondering who would buy U.S. Treasuries. We believe that a clearly slow-recovering global economy has allayed fears of the former for now while Europe’s issues have cast U.S. debt as relatively stable.
Our managers at Eagle are aware of headlines but one of the hallmarks of Eagle over its 35 years has been the fundamental research our managers do in constructing portfolios. Our goal here is to provide superior risk-adjusted returns for our long-term clients. Producing the desired results means avoiding getting caught up in today’s headlines (consider how many times in the last month, for example, the news has said Europe is “fixed,” only to hear a few days later it is not fixed at all) and focusing on individual companies that the managers believe have the characteristics necessary to make money for investors.
I hope you will read the commentaries that follow in which our portfolio managers discuss their specific funds. The general consensus among the managers seems to be that we likely face a slow-growth environment for some time and that the
volatility we have seen will continue. That said, volatility can create opportunities for long-term investors and there are
companies that show the promise of stability and growth, even in a challenging macroeconomic environment.
Here are just a few highlights from this year:
• | The Eagle Growth & Income Fund currently has an overall five-star rating from Morningstar.1 It is not surprising to us that the investing world suddenly has “woken up” to the idea of dividend-focused investing. In addition, shareholders have been notified that, effective January 20, 2012, the Eagle Large Cap Core Fund will be reorganized into the Eagle Growth & Income Fund. |
• | The Eagle Small Cap Core Value Fund (which we will be renaming the Eagle Smaller Company Fund) is now three years old and has produced for its long-term investors a solid track record.2 |
• | High-profile publications increasingly seek the insight of our managers. One example is a recent Barron’s article that featured the Eagle Mid Cap Growth Fund and manager Bert Boksen, CFA®, who also manages the Eagle Small Cap Growth Fund. |
I would like to remind you that investing in any mutual fund carries certain risks. The principal risk factors for each fund are described at the end of this report. Carefully consider the investment objectives, charges and expenses of any fund before you invest. Contact us at 800.421.4184 or eagleasset.com or your financial advisor for a prospectus, which contains this and other important information about the Eagle Family of Funds.
We are grateful for your continued support of, and confidence in, the Eagle Family of Funds.
Sincerely,
Richard J. Rossi
President
December 19, 2011
1 For the period ended September 30, 2011, the fund’s Class A shares are rated 5 stars for the overall, three- and five-year periods and 4 stars for the 10-year period among a total of 1,114, 1,114, 964 and 545 funds respectively, in the large-cap value category. Star ratings may be different for other share classes. Morningstar Rating® is based on risk-adjusted performance adjusted for fees and loads. Past performance is no guarantee of future results. Ratings are subject to change each month. 2011 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. Funds with at least three years of performance history are assigned ratings from the fund’s three-, five- and 10-year average annual returns (when available) and a risk factor that reflects fund performance relative to three-month Treasury bill monthly returns. Funds returns are adjusted for fees and sales loads. Ten percent of the funds in an investment category receive five stars, 22.5% receive four stars, 35% receive three stars, 22.5% receive two stars and the bottom 10% receive one star. Investment return and principal value will vary so that investors have a gain or loss when shares are sold. Funds are rated for up to three time periods (three-, five-, and 10-years) and these ratings are combined to produce an overall rating. Ratings may vary among share classes and are based on past performance. Past performance does not guarantee future results.
2 Returns for class A shares as of September 30, 2011 were -3.15% for the 1-year period and 9.90% since inception (inception date: November 3, 2008). Returns represent past performance and do not guarantee future results. The investment return and principal value of an investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance reflects a maximum front-end sales charge of 4.75% applied with dividends and capital gains reinvested. The expense ratio is 1.71%. Current performance may be lower or higher than the performance data quoted and will differ for other share classes. To obtain more current performance data as of the most recent month-end, you may call 800.421.4184 or visit our website at eagleasset.com.
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Performance Summary and Commentary | ||
Eagle Capital Appreciation Fund |
Meet the managers | Steven M. Barry, David G. Shell, CFA®, and Timothy M. Leahy, CFA®, are Portfolio Managers of Goldman Sachs Asset Management, LP’s (“GSAM”) “Growth Team.” Messrs. Barry and Shell are Chief Investment Officers and have been responsible for the day-to-day management of the Eagle Capital Appreciation Fund (the “Fund”) since 2002. Mr. Leahy joined GSAM as a Managing Director in 2005, and has been responsible for the day-to-day management of the Fund’s investment portfolio since February 2011.
Effective December 31, 2011, David G. Shell, CFA®, of GSAM, will retire and will no longer have portfolio management responsibilities for the Fund. Steven M. Barry and Timothy M. Leahy, CFA®, will remain with the fund as Chief Investment Officer and Portfolio Manager, respectively. Joseph B. Hudepohl, CFA®, will become a Portfolio Manager and, along with Messrs. Barry and Leahy, assume day-to-day management of the fund. Mr. Hudepohl has been a member of GSAM’s Growth Team since 1999.
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 typically 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 2011 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 2.78% (excluding front-end sales charges) during the fiscal year ended October 31, 2011, underperforming its benchmark index, the Russell 1000® Growth Index, which returned 9.92%. 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.
Growth of a $10,000 Investment from 11/1/01 to 10/31/11 (a)
(a) The Fund’s values and returns reflect the maximum front-end sales charge of 4.75%, fund expenses and the reinvestment of dividends; however, they do not reflect the deduction of taxes that you would pay on fund distributions or redemption of fund shares. The value of an investment in other share classes will differ due to each class’s respective sales charges and expenses.
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.
Performance discussion | Both the Fund and the Russell 1000® Growth Index delivered positive returns during the Fund’s fiscal
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Performance Summary and Commentary | ||
Eagle Capital Appreciation Fund (cont’d) |
year as the U.S. economy emerged from a recession and U.S. companies have been reporting earnings above market expectations. Strong returns from U.S. equities over the period reflected optimism on improving trends in labor, housing, manufacturing, and consumer confidence. Utilities and energy were the top performing sectors in both the Fund and the Index, while the telecommunication services and materials sectors lagged.
The Fund delivered positive absolute performance during the reporting period. Stock selection in the information technology and materials sectors and an underweight to the Industrials sector all contributed positively to the Fund’s performance relative to the benchmark. However, the Fund trailed its benchmark, the Russell 1000® Growth Index, during the period. Weakness in select consumer staples, health care and consumer discretionary names detracted from the Fund’s return.
Underperformers | Shares of Teva Pharmaceutical Industries Ltd. ADR, a leading manufacturer of generic drugs, declined during the period. This decline was due to competitive pressures and an ongoing infringement trial related to Copaxone, the company’s best-selling branded product and the top multiple sclerosis drug in the world by revenue. Despite these pressures, we continue to believe that Teva is competitively well positioned in the generics industry given its ability to launch earlier than other generics and its expanding global footprint. Furthermore, Teva’s large size and historically high free cash flow enables the company to keep costs low and remain financially flexible. Finally, Teva produces about half of its own active ingredients, which is an additional cost savings that it would otherwise pay to suppliers. The Fund continues to hold this position as we have conviction in Teva and believe it is gaining market share in a growing industry.
Staples, Inc., the office supply chain store, detracted from performance during the period after the company reported earnings that were below consensus estimates and lowered guidance for 2011. While we continue to see a long-term opportunity for the company, we sold out of the position as we believe ongoing cyclical challenges and macroeconomic headwinds may weigh on the business for a more extended period of time than we previously believed. We felt it was prudent to exit our position and reallocate the capital to higher conviction ideas in the Fund.
Shares of Devon Energy Corporation, one of the largest independent oil and gas exploration and production companies, detracted from relative performance during the period. Shares
declined due to macroeconomic headwinds and commodity pressures that have affected the energy sector at large. In addition, during the second quarter the company announced an increase in the capital expenditures budget, reflecting the acquisition of liquids-rich acreage and the acceleration of drilling in its existing Permian Basin, in New Mexico, and Canadian County, Oklahoma operations. In our view, the market had overly discounted the announcement and overlooked the potential of the exploratory plays. We also view the company’s announcement that it is looking for a partner in all five of its new venture plays very positively. We continue to have conviction in Devon given its deep inventory of liquids-rich growth plays, as well as its significant exposure to oil assets in Canada and various U.S. plays, and the Fund continues to hold this position.
Within consumer staples, Avon Products Inc. detracted from performance during the period. Avon’s earnings have been impacted by disappointing sales and softer margins due to higher input costs. In addition, management lowered its sales guidance for calendar year 2011. We continue to believe Avon is poised to deliver higher operating margins over the next few years as its broad geographic footprint, particularly in Latin America, provides exposure to numerous growing markets. However, we decided to trim our position during the period and allocated capital to higher conviction ideas in the Fund.
During the period, Northern Trust Corporation, the international financial services company, detracted from relative performance. Shares have recently come under pressure due to the low interest rate environment, regulatory uncertainty and macroeconomic headwinds. Despite these challenges, we believe Northern Trust remains a high quality franchise focused on expanding its business in core markets. In our view, the company has a solid balance sheet and cash position, and we believe that management is focused on rationalizing expenses and carefully managing risk (particularly their European exposure) which we view positively in the current environment. The Fund continues to hold this position.
Top performers | MasterCard Inc. (Class A) was a top contributor to performance during the period. The company has benefitted from better-than-expected purchase volume, the number of processed transactions and cross-border volume growth, as well as the positive impact from the announcement by the Federal Reserve on their final decision regarding debit interchange rates (charges on debit card transactions) as part of the last minute amendment to the Dodd-Frank Act of 2010, known as the Durbin amendment, which was more favorable
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Eagle Capital Appreciation Fund (cont’d) |
for the company than the market anticipated. Long-term, we believe the company’s large payment network and robust global footprint will allow it to benefit from the secular growth in cash-less payments and transaction volume growth.
Within the consumer staples sector, shares of Costco Wholesale Corporation, the largest membership warehouse club chain in the U.S., contributed to performance. During the period, the company reported strong revenue growth driven by rising gasoline prices, an increase in membership fees, solid membership renewal rates, and increased operations in global markets. In our view, Costco has a unique recurring revenue business model with higher barriers-to-entry than other retail franchises. We continue to believe accelerated customer traffic and an uptick in membership renewal rates should drive earnings growth. In addition, Costco has proven its ability to open profitable international units, which supports a long store growth runway.
Shares of NIKE, Inc. (Class B), a sportswear and equipment supplier, contributed to performance during the period. In the first quarter of 2011, unexpected pricing pressure from the rising cost of cotton negatively impacted quarterly earnings and the position detracted from relative performance. However, we believed that rising input costs would have only a transient effect on earnings, and we were confident that an improving operating environment coupled with our conviction in NIKE’s strong brand name and pricing power would allow it to pass on rising costs to consumers. We chose to add to our position on this weakness. Shares subsequently rose after the company announced strong sales acceleration in its key North American market in the second quarter of this year and raised its long-term revenue guidance. We believe that Nike has a leading product and innovation cycle, robust supply chain and strong balance sheet which should allow the company to continue to benefit from growing global demand for its products.
Xilinx, Inc., a semiconductor chip company that is a leader in programmable logic devices (“PLDs”), contributed to relative
returns during the period. The company reported better-than-expected third quarter 2011 earnings as well as improved gross margins. The company issued a positive outlook on its competitive positioning for the next product cycle and announced a number of new innovations in the pipeline that we believe will drive long-term growth. We maintain our conviction that Xilinx will benefit from the long-term secular trends of PLDs taking share from application-specific integrated circuits (“ASICs”), an alternative semiconductor chip. In our view, the addressable market for PLDs will continue to expand as they offer significant benefits over ASICs such as lower development costs, shorter development time, and upgradability.
Apple Inc., a designer and marketer of consumer electronics, computer software, and personal computers, contributed to the portfolio during the period. The company reported strong quarterly earnings driven by better-than-expected iPhone and iPad sales. We believe the iPhone will continue to gain market share worldwide as Apple continues to build out its business in emerging and developing markets such as China, Brazil and Mexico. We also believe the iPad has joined the iPhone as a key Apple product that will help the company increase market share and build brand awareness as new customers are exposed to the company’s product offerings. In August, Steve Jobs resigned as CEO of the firm and was succeeded by COO Tim Cook. In our view, Mr. Jobs’ resignation did not change the long-term fundamentals of the company. We believe Apple’s platform is now stronger than ever and can be successfully managed by Mr. Cook and Apple’s seasoned management team, following Mr. Jobs’ passing. We believe Apple’s increasing competitive momentum and compelling new products will drive continued outperformance in the stock.
The Fund continues to hold each of the securities noted above as “top performers.”
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Performance Summary and Commentary | ||
Eagle Growth & Income Fund |
Meet the managers | Edmund Cowart, CFA®, David Blount, CFA®, and John Pandtle, CFA® are Co-Portfolio Managers of the Eagle Growth & Income Fund (the “Fund”), and have been jointly responsible for the day-to-day management of the Fund’s investment portfolio since June 2011. Prior to June 2011, the portfolio was managed by William V. Fries, CFA®, Managing Director, and Cliff Remily, CFA®, of Thornburg Investment Management, Inc.
The performance discussion, including underperformers and top performers, covers the period since Eagle assumed management of the Fund in June 2011.
Investment highlights | The Fund invests primarily in domestic equity securities (predominantly common stocks) that the portfolio managers believe are high-quality, financially strong companies that pay above-market dividends, have cash resources (i.e. free cash flow) and a history of raising dividends. The Fund’s portfolio managers select companies based in part upon their belief that those companies have the following characteristics: (1) yield or dividend growth at or above the S&P 500® Index; (2) potential for growth; and (3) stock price below its estimated intrinsic value. The fund can also own a variety of other securities, including fixed income securities, which, in the opinion of the fund’s portfolio managers, offer prospects for meeting the fund’s investment goals.
This Morningstar Style Box™ shows the Fund’s investment style and size of companies held in the Fund.
© Copyright 2011 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 4.46% (excluding front-end sales charges) during the fiscal year ended October 31, 2011, underperforming its benchmark index, the S&P 500® Index which returned 8.09%. The
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.
Growth of a $10,000 Investment from 11/1/01 to 10/31/11 (a)
(a) The Fund’s values and returns reflect the maximum front-end sales charge of 4.75%, fund expenses and the reinvestment of dividends; however, they do not reflect the deduction of taxes that you would pay on fund distributions or redemption of fund shares. The value of an investment in other share classes will differ due to each class’s respective sales charges and expenses.
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.
Performance discussion | During the period of time in which Eagle managed the Fund through October 31, 2011, the market was mostly characterized by cautious investment and fear selling, bracketed by a pair of equity market rallies. Late in June, investor confidence sparked a late quarter rally. A rebound in June’s ISM Manufacturing Index appeared to indicate that a manufacturing dislocation caused by Japan’s natural disasters was healing. The Federal Reserve’s quantitative easing (QE2) program ended with a whimper, not a bang. In Europe, the Greek parliament approved additional austerity measures likely to facilitate receiving additional bailout funds. However, the rally came to a sudden and dramatic end early in the third quarter. Renewed fears and further distress in
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Eagle Growth & Income Fund (cont’d) |
the euro zone sovereign debt market fueled a substantial increase in volatility in the back half of the quarter. There was additional stress due to the rancorous debate over the U.S. federal debt ceiling, culminating in Standard & Poor’s first ever downgrade of U.S. debt. The subsequent October equity market rally was not enough to bring the S&P 500® Index out of negative territory for the five-month period.
Along with the broad market, the Fund’s performance since June 2011 was negative. The Fund did not have any one sector perform in the negative double-digits; however, seven of the nine economic sectors in which the Fund participated suffered negative returns. Sector allocation during the period did not benefit the Fund relative to the S&P 500® Index. This is mostly due to the Fund’s lack of participation in the information technology sector where it had trouble finding companies that met its investment mandate. This sector was essentially flat in the benchmark during the period; however, this made it one of the more attractive sectors in which to be invested during the period June 2011 through October 2011. On the other hand, stock selection for the Fund was positive relative to the index in eight of the nine economic sectors in which the Fund participated. The Fund benefited from the market’s preference for quality and stability during a period characterized by economic uncertainty.
Underperformers | Cooper Industries PLC, a producer of transformers, tools and electrical equipment, was one of the more economically cyclical holdings and was affected strongly by global macroeconomic trends. The Fund sold the stock as it opted for a less cyclical, more defensive name in the current slow growth setting.
JPMorgan Chase & Co., a leading global financial services firm, traded down during the period along with the financials sector in general. However, the stock was not down as much as most other diversified financial services stocks. The Fund continues to own the stock.
3M Company, the American multinational conglomerate corporation, traded down along with the rest of the industrial
conglomerates on global macroeconomic fears. The stock’s return over the period roughly matched the returns of its peers.
Investors were disappointed as amortization costs related to CenturyLink, Inc.’s acquisition of Qwest Communications International Inc. proved to be higher than expected. Fund management does not believe that this increase will affect the company’s cash flow and the Fund continues to own the provider of high speed internet, phone and TV service’s stock.
Food inflation provided a headwind for Sysco Corporation’s stock during the period, making it difficult for the marketer and distributor of foodservice products to perform above market expectations. The Fund continues to own the stock.
Top performers | McDonald’s Corporation, a global restaurant, has enjoyed strong top-line performance, showing a consistent ability to overcome difficult macro conditions and keep growing their business while managing margin pressures.
Regal Entertainment Group, a leading motion picture exhibitor, reported strong cinema attendance growth trends and good quarterly results which pushed the stock price up significantly during the period.
Simon Property Group, Inc., a commercial and real estate company, proved to be a good defensive pick during a period of economic uncertainty. The company’s core regional mall and outlet platform continued to show positive momentum.
Abbott Laboratories, a diversified pharmaceutical and health care product company, showed increasing visibility and solid revenue growth above market expectations. Due to these factors, the stock price benefited.
The stock of global broadband and telecommunications company Verizon Communications, Inc. held steady during the period of macroeconomic uncertainty, with earnings results that have come in at market expectations. The company is ahead of schedule on builds of their Long Term Evolution, a standard for wireless communication of high speed data.
The Fund continues to hold each of the securities noted above as “top performers.”
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Eagle International Equity Fund |
Meet the managers | Richard C. Pell is Chief Executive Officer at Artio Global Investors Inc. and Chief Investment Officer at its affiliate, 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.
© Copyright 2011 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 -12.90% (excluding front-end sales charges) during the fiscal year ended October 31, 2011, underperforming its benchmark index, which returned -4.66%. 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.
Growth of a $10,000 Investment from 11/1/01 to 10/31/11 (a)
(a) The Fund’s values and returns reflect the maximum front-end sales charge of 4.75%, fund expenses and the reinvestment of dividends; however, they do not reflect the deduction of taxes that you would pay on fund distributions or redemption of fund shares. The value of an investment in other share classes will differ due to each class’s respective sales charges and expenses.
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.
Performance discussion | During the fiscal year ended October 31, 2011, we witnessed an extraordinary number of major events affecting both global economies and markets, and, more importantly, the lives of citizens in both earthquake- and tsunami-ravaged Japan as well as the large populations of individuals living through the events of the Arab Spring. On top of these human events was the worsening of the sovereign debt crisis in Europe, which continues largely to dictate the trajectory of markets. Fears over a Greek default and contagion to the periphery countries in Europe contributed to major declines in markets during the months of August and September, coupled with high levels of market volatility. The markets also were impacted by S&P’s decision to cut its AAA rating on U.S. government debt to AA+, as well as renewed
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Eagle International Equity Fund (cont’d) |
fears that the fragile global economy may be sliding back toward a possible recession. Emerging markets underperformed the developed world as there was generally a “risk off” move by investors against the negative backdrop for most of the period under review. From a sector perspective, looking across both developed and emerging markets, the worst hit were utilities (impact of Japan’s nuclear disaster following the tsunami) and, not surprisingly, financials given the unraveling sovereign debt debacle in Europe. The best performing sectors were consumer staples and health care (fears over weakening global growth which favored non-discretionary, consumer-oriented companies), as well as energy.
In an environment which tended to favor more of a “risk off” bias, the Fund’s positioning within emerging markets relative to the MSCI® ACWI ex-US benchmark largely explained the underperformance for the period. Despite these challenges, the Fund remains committed to the emerging world, particularly in Asia, where we continue to see attractive, long-term opportunities for shareholders. During the period, the Fund’s overweight position in China detracted from the Fund’s relative performance. Fears shifted from worries about possible economic overheating in China to fears at the opposite end of the spectrum that the economy would experience a hard landing. The overweight position and stock selection within India also detracted from the Fund’s relative performance, with a number of infrastructure-related stocks underperforming. Stock selection in Russia and Brazil also had a negative impact amid concerns over slowing global growth. On a positive note, stock selection in Taiwan contributed to results given the Fund’s position in a smartphone company. Within developed markets, the Fund underperformed due primarily to a few stock-specific issues. Currency hedging also detracted for the period.
Underperformers | A combination of fears over rising inflation earlier in the reporting period, as well as concerns over slowing global growth, negatively impacted India and other emerging markets. Larsen & Toubro Ltd. GDR, India’s largest engineering company, was not immune to this backdrop. The Fund continues to hold this position.
VTB Bank OJSC GDR, Russia’s second largest bank, underperformed against concerns the economy is slowing, potentially affecting the outlook for loans within the industry. Although it underperformed, the Fund continues to hold this position.
Hang Lung Properties Ltd., a real estate developer based in Hong Kong, underperformed as concerns over a possible hard landing for the Chinese economy impacted property-related companies. The Fund continues to hold this position.
Sberbank, Russia’s largest lender, underperformed against fears of an economic slowdown and the impact on loan growth in the country. The Fund continues to hold this position.
Erste Group Bank AG, active in Eastern Europe, underperformed amidst difficulties surrounding foreign currency loans made in Hungary, which announced plans to impose mortgage losses on lenders. The Fund sold its position.
Top performers | Baidu Inc./China ADR, a Chinese internet search engine company, outperformed during the period. The shares received a particular tailwind toward the end of the period amid strong third quarter earnings and a growing belief the country will begin to ease measures designed to cool inflationary pressures. The Fund continues to hold this position.
Against higher oil prices, robust demand for gas and stronger refining margins, Netherland’s based Royal Dutch Shell PLC (Class A), Europe’s largest oil company by market value, outperformed. Despite sluggish economic growth in Europe and the U.S., world oil demand continues to grow in China, India and other developing countries. The Fund continues to hold this position.
The Fund’s position in HTC Corporation, a Taiwanese manufacturer of smartphones, was sold for several reasons, including profit taking, continued uncertainty behind Apple Inc. patent lawsuits, increasing strength of Samsung products and Google’s acquisition of Motorola (a direct competitor).
Dragon Oil PLC, the international oil and gas exploration, development and production company, with primary operations in Turkmenistan, outperformed for the period. The shares were supported by the company’s expectations that its rate of production growth would be maintained with prospects for increases in coming years. The Fund continues to hold this position.
First Quantum Minerals Ltd., Canada’s second-largest publicly traded copper producer, outperformed. After wide outperformance versus its sector and peers, the Fund sold it and took the profits on the position given more modest expectations for further upside potential.
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Eagle Investment Grade Bond Fund |
Meet the managers | James C. Camp, CFA®, a Managing Director at Eagle Asset Management (“Eagle”) and Joseph Jackson, CFA®, are Co-Portfolio Managers of the Eagle Investment Grade Bond Fund (the “Fund”) and have been jointly responsible for the day-to-day management of the Fund’s investment portfolio since the Fund’s inception.
Investment highlights | The Fund invests primarily in investment grade fixed income securities. Investment grade is defined as securities rated BBB- or better by Standard & Poor’s Rating Services or an equivalent rating by at least one other nationally recognized statistical rating organization or, for unrated securities, those that are determined to be of equivalent quality by the Fund’s Portfolio Manager. The average portfolio duration of the Fund is expected to vary and may generally range anywhere from two to seven years based upon economic and market conditions. The Fund expects to invest in a variety of fixed income securities including, but not limited to, corporate debt securities of U.S. and non-U.S. issuers, including corporate commercial paper; bank certificates of deposit; debt securities issued by states or local governments and their agencies; obligations of non-U.S. Governments and their subdivisions, agencies and government sponsored enterprises; obligations of international agencies or supranational entities (such as the European Union); obligations issued or guaranteed by the U.S. Government and its agencies; mortgage-backed securities and asset-backed securities; commercial real estate securities; and floating rate instruments.
This Morningstar Style Box™ shows the duration and credit quality of bonds held in the Fund. Duration and credit quality are two main components of bond performance. The assessment reflects the fund’s portfolio as of the date reported and is not a precise indication of risk or performance—past, present or future. Definitions of style assessments: Duration: Short, up to 3.5 years; Intermediate, more than 3.5 years to less than six years; Long, six years or greater. Credit quality: High, AA or better; Medium, A or BBB; Low, BB or lower as
rated by Standard & Poor’s or its equivalent, as reported to Morningstar. Source: Morningstar, Inc.
© Copyright 2011 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 2.75% (excluding front-end sales charges) during the fiscal year ended October 31, 2011, underperforming its benchmark index, which returned 3.22%. The Fund’s benchmark index, the Barclays Intermediate Government/Credit Bond Index, includes U.S. government and investment grade credit securities that have a greater than or equal to one year and less than ten years remaining to maturity and have $250 million or more of outstanding face value. 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.
Growth of a $10,000 Investment from 3/1/10 to 10/31/11 (a)
(a) The Fund’s values and returns reflect the maximum front-end sales charge of 3.75%, fund expenses and the reinvestment of dividends; however, they do not reflect the deduction of taxes that you would pay on fund distributions or redemption of fund shares. The value of an investment in other share classes will differ due to each class’s respective sales charges and expenses.
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.
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Performance Summary and Commentary | ||
Eagle Investment Grade Bond Fund (cont’d) |
Performance discussion | The past twelve months in the fixed income market could be best described as long periods of quiet nervousness punctuated by short periods of extreme panic. 2011 proved a continuation of 2010 in Europe—just with more concerning signs. The problems in Greece, as feared, spread to Spain, Portugal and Italy, swiftly creating downward pressure on Treasury yields. The ever-changing tone out of the euro zone was the most persistent and impactful storyline during the year. We expect this to continue into 2012 until some sort of sprawling resolution encompassing the entire Euro area is reached. Domestically the story garnering the most media coverage was the S&P downgrade of U.S. debt. It would be difficult to discern the real impact of the downgrade, considering that modern era low interest rates on U.S. Treasuries were reached after the downgrade. The items of note that caused more market reaction are concerns over the mortgage market which persist and, more importantly, fraudulent foreclosure practices that have presented potentially devastating legal liabilities for some primary financial institutions. This is an unresolved issue for many banks heavily involved in home loans before the credit crisis and will require close monitoring in 2012.
In the twelve-month period ended October 31, 2011, the Fund underperformed the Barclays Intermediate Government/Credit Bond Index by 47 basis points. The biggest contributor to the Fund’s performance, relative to its benchmark, was its positioning in corporate credit. The Fund was overweight high quality industrials as riskier issues underperformed. In terms of total return, financial institution holdings (as a sector) led all sub-sectors of the Fund. The corporate sector overall was the best performing sector of the Fund, outpacing Treasuries by a slim margin. The Fund’s mortgage backed securities, covered bond and government-related holdings also earned positive total returns despite lagging corporate credit and Treasuries. The utilities sub-sector lagged all others in the Fund, but also earned a positive total return.
Underperformers | The American internet consumer-to-consumer corporation eBay, 1.63%, 10/15/15, underperformed higher beta securities during the quarter as investors sought high-yielding investments. The Fund sold this security.
Both General Mills Inc., 5.65%, 02/15/19 and PepsiCo Inc., 7.90%, 11/01/18, and consumer products companies in general, were hurt by rising inflation and tightening margins due to the recent run-up in commodity prices. The Fund sold both of these securities.
Kreditanstalt fuer Wiederaufbau, 2.75%, 9/08/20, the German government-owned development bank, underperformed during the period due to renewed concerns over the European banking system. The Fund no longer owns this security.
American telecommunications company AT&T Corporation, 7.30%, 11/15/11, along with other short-duration issues, underperformed during the period as recession fears peaked. This issue has called.
Top performers | Intermediate-Long Treasuries, specifically U.S. Treasury Notes, 2.00%, 04/30/16 and 2.38%, 07/31/17, rallied during the period thanks to fears of recession locally and in Europe. The Fund continues to own both securities.
Investors preferred non-money center financial institutions, such as CME Group Index Services LLC, 144A, 4.40% 03/15/18 and US Bancorp, 4.13%, 5/24/21, during times of stress in 2011. The Fund sold CME Group during the period once it reached its price target. The Fund continues to own US Bancorp.
The Fund owns Google Inc., 3.63%, 05/19/21, an American multinational public corporation invested in internet search, cloud computing and advertising technologies. High quality, cash flow-rich tech companies, such as Google, outperformed riskier issuers late in the year. The Fund continues to own this position.
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Performance Summary and Commentary | ||
Eagle Large Cap Core 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.
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.
© Copyright 2011 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 5.78% (excluding front-end sales charges) during the fiscal year ended October 31, 2011, underperforming its benchmark index, the S&P 500® Index which returned 8.09%. The 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.
Growth of a $10,000 Investment from 5/2/05 to 10/31/11 (a)
(a) The Fund’s values and returns reflect the maximum front-end sales charge of 4.75%, fund expenses and the reinvestment of dividends; however, they do not reflect the deduction of taxes that you would pay on fund distributions or redemption of fund shares. The value of an investment in other share classes will differ due to each class’s respective sales charges and expenses.
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.
Performance discussion | Major stock market indexes posted satisfactory returns during the 12-month reporting period, supported by continued Federal Reserve accommodation, strong corporate earnings growth and an expanding economy. Significant volatility occurred, however. Following a strong first quarter when the equity market overcame significant shocks of widespread Middle East turmoil and a devastating earthquake and tsunami in Japan which impacted supply chains, major stock indexes were mixed in the second quarter. Strong earnings carried the market higher through April, but equity prices lost their upward momentum in May as weaker economic data, euro-zone sovereign debt concerns and the imminent June conclusion of the Federal Reserve’s quantitative easing (QE2) program prompted investors into a more cautious stance. Stocks finally rallied in late June after the Greek Parliament approved a five-year austerity plan demanded by international creditors, but the rally was short-lived.
A seemingly relentless stream of negative developments sent stock prices sharply lower during the third quarter, ending with
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Performance Summary and Commentary | ||
Eagle Large Cap Core Fund (cont’d) |
the fifth consecutive monthly decline for major indexes as investors reacted to: deepening concerns over the European sovereign debt crisis; partisan intransigence in raising the federal debt ceiling; S&P’s downgrade of U.S. credit, weakening global economic data that raised the possibility of a double-dip recession domestically; negative growth potential in the euro-zone; no growth in Japan; and at least a significant slowdown in China. Investor sentiment turned positive in October as stock prices rebounded, fueled strongly by the growing optimism of European efforts to resolve its debt crisis, eased domestic recession concerns and mostly upbeat third quarter earnings reports.
The S&P 500® Index performance during the period was led by energy, utilities, consumer discretionary, consumer staples, health care and information technology sectors. The Fund captured the performance in those sectors with particularly strong absolute returns from utilities, energy, health care, industrials, information technology and consumer staples. Weaker-performing sectors included telecommunication services, financials, consumer discretionary and materials.
Underperformers | Sprint Nextel Corporation, a global provider of voice, data and internet services, reacted to negative commentary regarding potential liquidity issues following its commitment to Apple Inc. for the iPhone and media misinterpretation/poor CFO communication regarding future capital market needs. Sprint later reported third quarter earnings above expectations with much greater detail regarding both the costs associated with the iPhone as well as the Network Vision plan. Fund management believes that this sets up the stock for several potential positive catalysts in the intermediate term. The Fund continues to hold this position.
The Walt Disney Company, a diversified worldwide entertainment company, saw a negative stock price reaction due to lowered earnings estimates by a couple of percentage points due to sluggish ad trends and slightly slower-than-expected park attendance trends. This was certainly exacerbated by recession fears. The Fund continues to hold this position.
Staples, Inc., the office supply chain store, tumbled after reporting first quarter 2011 earnings that were shy of Street estimates. European margins were hurt by capital spending for revenue growth that didn’t occur due to the macro slowdown and, as a result, guidance was trimmed for the year. Corrective actions have been taken and the stock’s weakness has created a compelling relative valuation. The Fund continues to hold this position.
Apache Corporation, an American independent oil and gas corporation, along with the energy sector in general, came
under pressure in August and September on declining energy/commodity prices as global economic growth concerns were heightened by the European sovereign debt crisis. The Fund continues to hold this position.
Adobe Systems Inc., an American computer software company, experienced underperformance that was mostly due to worries centered around the European credit crisis and the potential for further budget cuts. While the company posted better-than-expected second quarter results, along with better-than-expected Japanese sales, Europe was slightly below expectations. Europe comprises 31% of Adobe’s revenue. The position was sold in August.
Top performers | Apple Inc., designer and marketer of consumer electronics, computer software, and personal computers, posted exceptional June quarter results paced by strong sales of both iPhones and iPads and expectations for the upcoming iPhone5 which Fund management believes will helps support continued sales momentum.
UnitedHealth Group Incorporated, a provider of health services and benefits, performed well as investors become increasingly comfortable that managed care companies can successfully navigate U.S. healthcare reform, reflected by rising earnings estimate revisions.
Tyco International Ltd., a leading provider of electronic security products and services, was a top performer as Schneider National Inc. held exploratory discussions with bankers regarding a potential acquisition of Tyco. While we believe the magnitude and complexity of the transaction made a deal unlikely, Schneider’s interest highlighted the strong free cash flow yield at Tyco as well as the improving business trends and operating leverage at ADT North America, a division of Tyco.
Bed Bath & Beyond Inc., a chain of domestic merchandise retail stores, produced a significant positive earnings surprise in February of $1.12 versus a consensus of $0.97 and management’s $0.91-$0.95 guidance. Additionally, management provided 2011 guidance at the low end of what was slightly above consensus.
Exxon Mobil Corporation, and the energy sector in general, benefited from the increasing intensity of internal conflicts in the Middle East earlier this year, which sharply boosted oil prices on supply concerns. While oil prices remain below most theoretical estimates of demand destruction levels, rising energy prices bear attention as to their potential impact on global economic growth.
The Fund continues to hold each of the securities noted above as “top performers.”
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Performance Summary and Commentary | ||
Eagle Mid Cap 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”), and has managed the Fund since its inception. Eric Mintz, CFA®, has been Co-Portfolio Manager since 2011, and Christopher Sassouni, DMD, has served as Assistant Portfolio Manager of the Fund since 2006. Mr. Mintz served as Assistant Portfolio Manager from 2008 through 2011.
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.
© Copyright 2011 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 6.89% (excluding front-end sales charges) during the fiscal year ended October 31, 2011, underperforming its benchmark index, which returned 10.08%. 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.
Growth of a $10,000 Investment from 11/1/01 to 10/31/11 (a)
(a) The Fund’s values and returns reflect the maximum front-end sales charge of 4.75%, fund expenses and the reinvestment of dividends; however, they do not reflect the deduction of taxes that you would pay on fund distributions or redemption of fund shares. The value of an investment in other share classes will differ due to each class’s respective sales charges and expenses.
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.
Performance discussion | All but the telecommunication services sector posted positive returns for the Fund during the period. Consumer staples, energy and consumer discretionary posted the largest absolute returns while the telecommunication services sector slightly hindered the Fund’s performance relative to its benchmark for the period. In consumer staples, strong returns in the food and staples retailing and food products industries led sector performance for the period. The oil, gas and consumable fuels industry reflected strong returns to support solid performance in the energy sector. In consumer discretionary, the textiles apparel and luxury goods and multiline retail industries led with solid absolute returns. Within telecommunication services, the wireless telecommunication services industry dragged down returns for the reporting period.
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Eagle Mid Cap Growth Fund (cont’d) |
The Fund underperformed its benchmark index during the reporting period. The financials, industrials, energy, materials and information technology sectors pulled returns relative to the Fund’s benchmark down for the period. Weak performance in the real estate management and development and diversified financial services industries dragged down relative returns in financials. In industrials, a slight overweight along with underperformance in the machinery space and underperformance in the trading companies and distributors industry damaged sector returns. Soft results in the oil, gas and consumable fuels industry hurt relative returns in energy. In materials, an overweight position and underperformance in the metals and mining industry hurt returns for the period. Underperformance in the software and internet software and services industries negatively affected the information technology sector result. The Fund did perform well against the index within the consumer staples, consumer discretionary and health care sectors. An overweight position in an outperforming personal products industry boosted relative returns in consumer staples. Strong performance in the internet and catalog retail industry and a slight overweight and outperformance in the textiles apparel and luxury goods led to strong consumer discretionary relative returns. In health care, overweight positioning in the health care technology industry boosted sector returns for the period.
Underperformers | Akamai Technologies Inc. provides technologies that improve the delivery of content over the Internet. The firm saw lower-than-expected revenue growth as content delivery traffic was not substantial enough to offset continued price decreases.
Jones Lang LaSalle, Inc. is a provider of integrated real estate and investment management services. The firm experienced softer-than-expected leasing and sales rates during the period and encountered concerns related to exposure in European markets and the associated economic turmoil in the region.
Dril-Quip, Inc. is one of the world’s leading manufacturers of precision-engineered offshore drilling and production equipment. It specializes in deep water depths and harsh environments. The company is levered to deep-water drilling activity in the Gulf of Mexico and growth in its subsea business, for which permitting recently has begun to pick back up. Dril-Quip, along with the rest of the industry, saw increased scrutiny of its project specifications and testing procedures in
the wake of the BP oil spill, resulting in slightly extended completion timeframes in some instances.
WESCO International, Inc., a distributor of electrical supplies, tempered expectations in light of ongoing economic uncertainty as weaker-than-expected construction trends put pressure on the firm’s end markets.
Shares of Whiting Petroleum Corporation, a domestic oil and natural gas company, traded down due to spotty well-completion results earlier in the period.
The Fund sold out of each of the securities noted above as “underperformers.”
Top performers | ARM Holdings PLC ADR, a beneficiary of smartphone and tablet adoption, announced that a future version of the Windows operating system will run on ARM-based processors. This will enable the company to expand its addressable market to include Windows-based tablets and potentially servers, notebooks and desktop PCs.
Deckers Outdoor Corporation designs and markets performance and casual footwear, as well as outerwear and accessories. The stock has experienced substantial benefit from revenue growth in its UGG® footwear line as the assortment expansion increases the firm’s addressable market.
Herbalife Ltd. is a provider of nutritional supplements and personal care products with focus on weight management and wellness. The stock continues to benefit from an aging population and a general increase in the level of health awareness by consumers. In addition, Herbalife is making significant headway into China.
Dollar Tree Stores, Inc. operates discount stores across the United States. The stock has benefited from the current environment as consumers look to save money on household supplies and other everyday purchases.
Cerner Corporation, a provider of healthcare information technology solutions, is well-aligned with the federal Health Information Technology for Economic and Clinical Health (HITECH) Act and is seeing continued growth given the legislation’s focus on electronic health records security.
The Fund continues to hold each of the securities noted above as “top performers.”
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Performance Summary and Commentary | ||
Eagle 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”). Dr. McCallister has 24 years of investment experience and has managed the Fund since its inception. Scott Renner has been Co-Portfolio Manager since 2011. Stacey Serafini Thomas, CFA®, served as Assistant Portfolio Manager to the Fund from 2000 to 2005, before being named Co-Portfolio Manager in 2005.
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.
© Copyright 2011 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 -1.18% (excluding front-end sales charges) during the fiscal year ended October 31, 2011, underperforming its benchmark index, the S&P MidCap 400® which returned 8.55%. The 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.
Growth of a $10,000 Investment from 11/1/01 to 10/31/11 (a)
(a) The Fund’s values and returns reflect the maximum front-end sales charge of 4.75%, fund expenses and the reinvestment of dividends; however, they do not reflect the deduction of taxes that you would pay on fund distributions or redemption of fund shares. The value of an investment in other share classes will differ due to each class’s respective sales charges and expenses.
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.
Performance discussion | During the fiscal year, stocks mostly traded together and idiosyncratic risk was small. In early 2011, many were surprised that the stock market continued to produce strong returns in spite of headline news difficult to overlook: select European bond yields were at all-time highs; the world’s third-largest economy suffered dual disasters; state and local cutbacks took place here in the United States; oil prices were at several-year highs; housing prices had fallen to a new post-bubble low; and developed nations continue to have high debt burdens. Then, during mid-2011, the S&P MidCap 400® Index dropped almost 20%. One might expect that several investment opportunities have developed in the past few months. However, economic risks are clearly heightened because global credit markets that are now reflecting the stresses in Europe, the economies of China, and emerging markets are slowing. In addition, there is a definite fiscal headwind here in the United States.
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Eagle Mid Cap Stock Fund (cont’d) |
The Fund underperformed its index benchmark, the S&P MidCap 400®, during the period. Relative to the Fund’s benchmark, the telecommunication services sector had the best performance while consumer discretionary, followed by industrials and staples, had the worst performance. For the period, the Fund was overweight in consumer discretionary, with most of that in media holdings. While the Fund’s media holdings outperformed the media in the index, its overweighting hurt the Fund’s allocation affect. Furthermore, the underweight in specialty retailers hurt the Fund, and its holdings were down slightly, while the retailers in the index were up. The Fund still maintains the underweight in retailers as it is a cyclical industry by nature that often does not meet the Fund’s investment criterion. Industrials were hurt as the Fund’s machinery holdings underperformed the index. The Fund underperformed while being underweight consumer staples as the sector became a safe haven trade for investors concerned with the economy.
Underperformers | The Fund purchased stock in Illumina, Inc., a global company that develops innovative array-based solutions for DNA, RNA and protein analysis, after the company missed estimates for earnings and revenue. It was thought that guidance was more achievable, yet the shares traded lower. For the remainder of the period, exposure to the National Institute of Health and the European Union hurt the stock. Aside from Europe, there were concerns that the National Institute of Health would be cutting its budget during the debate over the debt ceiling. The Fund sold this position.
DISH Network Corporation, the second largest pay TV provider in the U.S., experienced a sell-off this summer after it surprised the Street with subscriber churn in its satellite business. The Fund continues to own this position as we believe its inexpensive valuation should work in the long term.
Lazard Ltd., the world’s preeminent advisory investment bank, was purchased as an effort to own more mergers and acquisitions boutiques, because the Fund expected that business segment to return to a stronger pace. However, the stock experienced a sell-off as mergers and acquisitions were uneven across the globe due to weak CEO confidence levels. The Fund sold the holding as European and U.S. sovereign debt crises continued to erode CEO confidence, which is key to mergers and acquisitions.
General Cable Corporation, a manufacturer of copper, aluminum and fiber optic wire and cable products for the energy, industrial, specialty and communications markets, was lower on similar concerns of European exposure. General Cable also missed earnings due to delayed shipments and foreign currency translations. The Fund sold the holding as we felt it would be best to lower the Fund’s exposure to Europe.
Lam Research Corporation, a supplier of wafer fabrication equipment and services to the worldwide semiconductor industry, traded lower as it reported fewer revenues this quarter. The Fund continues to hold the position as it has large market shares in both etching and cleaning of circuit boards and over $1 billion in cash.
Top performers | National Oilwell Varco, Inc., a worldwide leader in providing major mechanical components for land and offshore drilling rigs, saw an uptick in inbound orders. The orders were lifted as there has been a large change in the sentiment for contract drillers, causing them to increase their orders for rigs. New orders for capital equipment jumped to $2 billion during this period, and it was the first time orders exceeded deliveries since 2008. The Fund sold National Oilwell Varco in the spring, as it grew out of the market cap range of the Fund.
Check Point Software Technologies Ltd., a leader in network security software, continues to cross-sell its products after it acquired Nokia’s appliances business. The company has had success migrating users to newer versions of the platform, and these newer versions have additional functionality and higher average selling prices. The Fund continues to own the stock.
Agilent Technologies Inc., a manufacturer of a wide range of analytical instrumentation relating to mass spectrometry, spectroscopy, chromatography and biotechnology, continued to execute well throughout the period. The company is the leader in measurement devices, with larger clients in the wireless communications and life-sciences industries. The Fund continues to hold this position.
Fossil, Inc., a designer and manufacturer of clothing and accessories, continues to do well as it is an example of one of the few specialty retailers that operates in a niche market with a solid brand as its barrier to entry. We believed the watch and accessories company was trading at a good value and that, going forward, the revenue growth was still going to be strong and gross margins would continue to be robust. The Fund sold the position when the security reached its target valuation.
LaSalle Hotel Properties is a hotel real estate investment trust (“REIT”) which owns 35 upscale hotels. LaSalle has relationships with lodging companies like Westin, Hilton and Hyatt Hotels. We purchased this holding toward the end of the fiscal year as the company traded lower when compared to other hotel REITs despite being in a much more enviable debt-to-equity ratio. Shortly after the Fund initiated a position, the stock traded higher following an announcement of a share repurchase valued at $100 million. The Fund continues to hold this position.
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Eagle Small Cap Core Value Fund |
Meet the managers | David M. Adams, CFA®, and John “Jack” McPherson, CFA®, Managing Directors at Eagle Boston Investment Management, Inc. (“EBIM”), are Co-Portfolio Managers of the Eagle Small Cap Core Value Fund (the “Fund”), and have been jointly responsible for the day-to-day management of the Fund’s investment portfolio since its inception.
Investment highlights | The Fund invests primarily in equity securities of small-capitalization companies. Using a valuation sensitive 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.
© Copyright 2011 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 11.35% (excluding front-end sales charges) during the fiscal year ended October 31, 2011, outperforming both benchmark indices, the Russell 2000® Index and Russell 2500® Index, which returned 6.71% and 7.97%, respectively. The Russell 2000® Index is an unmanaged index comprised of the 2,000 smallest companies in the Russell 3000® Index, and the
Russell 2500® Index is a market cap weighted index that includes the smallest 2,500 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.
Growth of a $10,000 Investment from 11/3/08 to 10/31/11 (a)
(a) The Fund’s values and returns reflect the maximum front-end sales charge of 4.75%, fund expenses and the reinvestment of dividends; however, they do not reflect the deduction of taxes that you would pay on fund distributions or redemption of fund shares. The value of an investment in other share classes will differ due to each class’s respective sales charges and expenses.
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.
Performance discussion | Over the course of the Fund’s fiscal year, volatility in the global markets, in general, and U.S. small cap markets, in particular, increased dramatically. The major concerns were the same issues that had been an overhang on economic activity since the recovery began over two years ago: sovereign debt issues and their implied contagion; the United States’ debt ceiling and implied fiscal reform for the next decade; and current high unemployment rates and lower-than-normal expected GDP growth coming out of the global recession. Along with geopolitical risks in North Africa and the Middle East, the ongoing sovereign debt issues in Europe and a
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Performance Summary and Commentary | ||
Eagle Small Cap Core Value Fund (cont’d) |
natural disaster/nuclear crisis in Japan, the market, during the period, traded lower.
For the period, every industry sector, aside from telecom services, provided positive returns for the benchmark. The Russell 2000® Index was led by energy, consumer staples, utilities and health care, and the Russell 2500® Index was led by consumer staples, energy, utilities, consumer discretionary and health care, all of which outperformed respectively. The Fund realized good absolute returns during the period from these sectors. The market rewarded those industries and sectors with the greatest growth in top and bottom line. The telecom services, financials, materials, industrial and information technology sectors underperformed the overall benchmark respectively. Relative to the benchmark, the Fund outperformed most in the industrials, consumer staples and health care sectors. In industrials, the Fund benefited from strong stock selection, while being neutrally weighted. In consumer staples, the Fund was slightly overweight, with strong stock selection leading to outperformance, while in health care, outperformance was driven by strong stock selection. The only sector detracting from relative performance was telecom services, where the Fund was overweight and underperformed.
Top performers | Herbalife Ltd., a multi-level marketer of nutritional supplements, rose 95% as the company reported strong quarterly earnings growth and reiterated a strong future outlook based largely on the continued success of the rollout of their daily consumption model.
Aspen Technology, Inc., an enterprise software company, appreciated 57% due to strong fundamental demand for their AspenONE suite of software, along with the recognition that their transition from a license-based business model to a subscription-based model is progressing well.
Rosetta Resources Inc., an oil and gas exploration and production company, appreciated 85% due mainly to success in various resource plays, particularly the Eagle Ford Shale and Alberta Bakken Shale, leading to increased production and cash flow.
Dycom Industries, Inc., a provider of engineering, construction and maintenance services to telecom and cable providers, has witnessed a significant and sustainable increase in demand for its services as customers continue to build out networks. The
stock has appreciated 79% and we believe strong demand will continue for the foreseeable future.
Cubist Pharmaceuticals, Inc., a developer, manufacturer and marketer of biopharmaceuticals, appreciated 63% on the continued success of their primary drug Cubicin, coupled with a growing new drug and distribution pipeline.
The Fund continues to hold each of the securities noted above as “top performers.”
Underperformers | Alpha Natural Resources, Inc., a coal producer, dropped 48% as weaker pricing for coal weighed on investor psychology, and the company’s acquisition of Massey Energy created a possible transition of the shareholder base. The Fund remains a holder of the stock but continues to evaluate the situation.
Net 1 UEPS Technologies, Inc., a provider of transaction processing services to governmental agencies serving poor and unbanked populations globally, fell 37% despite relatively good earnings. The market reacted negatively as the company continues to await clarity regarding the contract renewal of their largest client. We view the uncertainty as being discounted in the share price and, therefore, the Fund continues to hold the position.
BankUnited Inc., a Florida based savings and loan company, fell 22%, which was consistent with the selloff in other regional banking companies, despite being well positioned to have positive future growth under a new management team. The Fund continues to maintain a position in the stock.
Assured Guaranty Ltd., a provider of credit enhancement to the municipal, mortgage and structured finance markets, dropped 33% as concern spread over a potential ratings downgrade by Standard & Poors, coupled with increased investor worry in their core markets. We continue to view the uncertainty as being discounted in the share price and, therefore, the Fund continues to hold the position.
Cbeyond, Inc., a national provider of voice and broadband internet services to small companies, was down 40% as a slowing economy and competition from low cost cable and competitive local exchange carriers (CLECs) pressured their business model. The Fund continues to hold a position but we are monitoring the competitive situation closely.
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Performance Summary and Commentary | ||
Eagle Small Cap Growth 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. Eric Mintz, CFA®, has been Co-Portfolio manager since 2011, and previously served as Assistant Portfolio Manager from 2008 through 2011.
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.
© Copyright 2011 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 15.21% (excluding front-end sales charges) during the fiscal year ended October 31, 2011, outperforming its benchmark index, the Russell 2000® Growth Index, which returned 9.84%. 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. 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.
Growth of a $10,000 Investment from 11/1/01 to 10/31/11 (a)
(a) The Fund’s values and returns reflect the maximum front-end sales charge of 4.75%, fund expenses and the reinvestment of dividends; however, they do not reflect the deduction of taxes that you would pay on fund distributions or redemption of fund shares. The value of an investment in other share classes will differ due to each class’s respective sales charges and expenses.
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.
Performance discussion | The Russell 2000® Growth Index benchmark posted modest gains during the one-year reporting period ended October 31, 2011. Consumer staples, energy and healthcare posted the strongest absolute returns, while the materials sector somewhat tempered benchmark returns for the period. The Fund had exceptional absolute performance during the one-year reporting period ended October 31, 2011. Consumer staples, energy and consumer discretionary sectors led the Fund’s solid returns. In consumer staples, the personal products industry continued to fuel returns in the sector. In energy, the Fund’s investments in the energy equipment and services and oil gas and consumable fuels industries again had strong performance for the period. The specialty retail and
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Performance Summary and Commentary | ||
Eagle Small Cap Growth Fund (cont’d) |
hotels restaurants and leisure industries posted strong gains for the consumer discretionary sector. The materials and industrials sectors lagged for the period. In materials, the Fund’s investments in the chemicals and metals and mining industries finished down for the year. The machinery industry posted negative returns in the industrials sector.
The Fund outperformed its benchmark, the Russell 2000® Growth Index, during the one-year period ended October 31, 2011. The information technology, consumer discretionary, energy, consumer staples and financials sectors each contributed to the strong returns. The information technology sector outperformed the benchmark despite a slight underweight posture in the space due to strong stock selection. Consumer discretionary outperformance was also attributable to solid stock selection. Strong absolute performance and overweight positioning led to energy’s outperformance during the period. In consumer staples, strong stock selection generated outperformance in the sector with significant contribution from the personal products industry holding returns. The Fund underperformed the index in the industrials and materials sectors during the reporting period. In industrials, underperformance in the machinery and commercial services and supplies industries dragged down returns relative to the Fund’s benchmark. A slightly overweight position and underperformance in the chemicals industry hurt returns in the materials sector.
Top performers | Genesco Inc. is a retailer of headwear, footwear and clothing accessories. The stock has benefitted from strong earnings growth and the acquisition of Schuh Group.
Varian Semiconductor Equipment Associates, Inc. is a supplier of production equipment involved in the fabrication of semiconductor chips primarily for manufacturers in the United States. Varian was acquired by Applied Materials, Inc., during the period, at a sizeable premium.
TIBCO Software Inc., a provider of enterprise middleware software, has delivered solid execution as demand for its middleware, business process management and predictive analytics software has remained robust.
BJ’s Restaurants, Inc. owns and operates casual dining restaurants in the United States. The company has benefitted from strong earnings and comparable store growth and pricing power and, in our opinion, possesses a long growth runway ahead.
Deckers Outdoor Corporation designs and markets performance and casual footwear, as well as outerwear and accessories. The stock has experienced substantial benefit from revenue growth in its UGG® footwear line as the assortment expansion increases the firm’s addressable market.
Other than the acquisition of Varian mentioned above, the Fund continues to hold each of the securities noted above as “top performers.”
Underperformers | ArvinMeritor, Inc. is a supplier of automotive components, including drive trains used in commercial trucking. The firm encountered some difficulty ramping production levels back up to address renewed demand given modest cyclical exposure through the trucking and manufacturing market cycles. The Fund continues to own this position.
Polymer Holdings, LLC is a manufacturer of polymers used to enhance the flexibility, strength and durability of products used as sealants, roofing and automotive applications. The stock encountered headwinds from material butadiene cost increases during the period as margins saw some pressure from customer pushback in light of those increases. The Fund continues to own this position.
MedAssets Inc. provides software solutions that help hospitals and health systems improve their operating margins by lowering supply costs and increasing revenue capture. The company’s consulting services division has grown so quickly that they did not have the infrastructure in place to deliver on targets that would have earned them certain bonuses. Management has taken actions to slow the growth of this business until it has the proper infrastructure in place. We believe the stock is oversold at current levels and continue to hold shares in the Fund.
The GEO Group, Inc. manages correctional and mental health facilities through contracts, with government agencies, primarily in the United States. Seemingly irrational prisoner population policies, particularly in California, negatively impacted the stock. We view the setbacks as temporary as GEO addresses a cost effective solution for states with budgetary concerns. The Fund continues to own this position.
Dean Foods Co. is the largest processor and distributor of milk in the U.S. We expected the company would be able to improve profitability; however, this turnaround has yet to materialize. The company’s cost structure is highly sensitive to dairy prices, and milk prices have remained extremely competitive. The Fund sold the stock.
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Investment Portfolios
10.31.2011 |
Common stocks—99.0% | Shares | Value | ||||||||
Telecommunications—8.2% | ||||||||||
American Tower Corporation, Class A* | 379,288 | $20,898,769 | ||||||||
Crown Castle International Corporation* | 288,487 | 11,931,822 | ||||||||
Total common stocks (cost $289,318,101) | 398,185,054 | |||||||||
Total investment portfolio (cost $289,318,101) 99.0% | 398,185,054 | |||||||||
Other assets in excess of liabilities 1.0% | 3,988,693 | |||||||||
Net assets 100.0% | $402,173,747 | |||||||||
* Non-income producing security | ||||||||||
ADR—American depository receipt |
Sector allocation (unaudited) | ||||
Sector | Percent of net assets | |||
Technology | 24.4% | |||
Consumer, non-cyclical | 16.0% | |||
Communications | 15.4% | |||
Consumer, cyclical | 15.1% | |||
Energy | 10.2% | |||
Financial | 10.0% | |||
Industrial | 5.0% | |||
Basic materials | 2.9% |
The accompanying notes are an integral part of the financial statements. | 21 |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE GROWTH & INCOME FUND (cont’d) | ||||||||||
Common stocks—96.7% | Shares | Value | ||||||||
Healthcare products—1.9% | ||||||||||
Becton Dickinson and Company | 54,598 | $4,271,201 | ||||||||
Miscellaneous manufacturer—3.0% | ||||||||||
3M Company | 86,944 | 6,870,315 | ||||||||
Oil & gas—10.5% | ||||||||||
Chevron Corporation | 83,215 | 8,741,736 | ||||||||
ConocoPhillips | 99,381 | 6,921,887 | ||||||||
Exxon Mobil Corporation | 107,619 | 8,403,968 | ||||||||
Pharmaceuticals—8.6% | ||||||||||
Abbott Laboratories | 131,706 | 7,095,002 | ||||||||
Johnson & Johnson | 113,761 | 7,325,071 | ||||||||
Pfizer, Inc. | 269,995 | 5,200,104 | ||||||||
Real estate investment trusts—8.6% | ||||||||||
Boston Properties, Inc. | 32,117 | 3,179,262 | ||||||||
Digital Realty Trust, Inc. | 96,641 | 6,023,633 | ||||||||
HCP, Inc. | 74,992 | 2,988,431 | ||||||||
ProLogis, Inc. | 95,790 | 2,850,710 | ||||||||
Simon Property Group, Inc. | 35,132 | 4,512,354 | ||||||||
Retail—6.7% | ||||||||||
McDonald’s Corporation | 83,669 | 7,768,667 | ||||||||
The Home Depot, Inc. | 207,975 | 7,445,505 | ||||||||
Telecommunications—7.1% | ||||||||||
AT&T, Inc. | 184,357 | 5,403,504 | ||||||||
CenturyLink, Inc. | 154,306 | 5,440,829 | ||||||||
Verizon Communications, Inc. | 147,617 | 5,458,877 | ||||||||
Toys/games/hobbies—1.5% | ||||||||||
Mattel, Inc. | 122,128 | 3,448,895 | ||||||||
Transportation—2.1% | ||||||||||
Norfolk Southern Corporation | 64,147 | 4,746,236 | ||||||||
Total domestic common stocks (cost $197,823,172) | 196,471,074 | |||||||||
Foreign—10.8% | ||||||||||
Banks—2.9% | ||||||||||
Bank of Montreal | 112,439 | 6,653,016 | ||||||||
Electronics—2.7% | ||||||||||
Tyco International Ltd. | 138,802 | 6,322,431 | ||||||||
Gas—2.5% | ||||||||||
National Grid PLC, Sponsored ADR | 113,345 | 5,675,184 | ||||||||
Pharmaceuticals—2.7% | ||||||||||
GlaxoSmithKline PLC, Sponsored ADR | 136,530 | 6,115,179 | ||||||||
Total foreign common stocks (cost $24,135,461) | 24,765,810 | |||||||||
Total common stocks (cost $221,958,633) | 221,236,884 | |||||||||
Total investment portfolio (cost $221,958,633) 96.7% | 221,236,884 | |||||||||
Other assets in excess of liabilities 3.3% | 7,543,288 | |||||||||
Net assets 100.0% | $228,780,172 | |||||||||
ADR—American depository receipt |
Sector allocation (unaudited) | ||||
Sector | Percent of net assets | |||
Consumer, non-cyclical | 27.9% | |||
Industrial | 16.7% | |||
Financial | 13.7% | |||
Consumer, cyclical | 10.6% | |||
Energy | 10.5% | |||
Communications | 7.2% | |||
Basic materials | 6.1% | |||
Utilities | 4.0% |
22 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE INTERNATIONAL EQUITY FUND (cont’d) | ||||||||||
Common stocks—95.4% | Shares | Value | ||||||||
China (cont’d) | ||||||||||
Changsha Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H | 197,400 | $279,897 | ||||||||
China National Building Material Company Ltd., Class H | 46,000 | 58,962 | ||||||||
Ctrip.com International Ltd., Sponsored ADR* | 18,682 | 651,255 | ||||||||
Dongfeng Motor Group Company Ltd., Class H | 194,000 | 316,627 | ||||||||
Focus Media Holding Ltd., Sponsored ADR* | 6,624 | 180,040 | ||||||||
Golden Eagle Retail Group Ltd. | 138,000 | 336,295 | ||||||||
Intime Department Store Group Co. Ltd. | 223,500 | 320,416 | ||||||||
Lianhua Supermarket Holdings Company Ltd., Class H | 35,400 | 56,916 | ||||||||
Tingyi Cayman Islands Holding Corporation | 52,000 | 146,966 | ||||||||
Wumart Stores, Inc., Class H | 122,500 | 247,517 | ||||||||
Zhuzhou CSR Times Electric Company Ltd., Class H | 56,000 | 129,190 | ||||||||
Czech—0.4% | ||||||||||
Komercni Banka AS | 1,018 | 196,310 | ||||||||
Denmark—1.7% | ||||||||||
Novo Nordisk AS, Class B | 7,748 | 818,167 | ||||||||
Finland—0.2% | ||||||||||
Fortum Oyj | 4,402 | 107,099 | ||||||||
France—9.9% | ||||||||||
BNP Paribas | 2,314 | 102,601 | ||||||||
CFAO SA | 5,076 | 196,161 | ||||||||
Cie Generale d’Optique Essilor International SA | 9,026 | 652,918 | ||||||||
Danone | 8,412 | 581,484 | ||||||||
Eutelsat Communications | 3,710 | 152,635 | ||||||||
GDF Suez | 8,139 | 229,190 | ||||||||
Iliad SA | 1,545 | 180,502 | ||||||||
LVMH Moet Hennessy Louis Vuitton SA | 5,474 | 907,207 | ||||||||
PPR | 2,055 | 319,837 | ||||||||
Sanofi | 3,842 | 275,023 | ||||||||
Schneider Electric SA | 10,329 | 598,292 | ||||||||
Societe Generale SA | 1,829 | 52,445 | ||||||||
Technip SA | 1,645 | 155,530 | ||||||||
Total SA | 7,975 | 417,289 | ||||||||
Vinci SA | 1,661 | 81,524 | ||||||||
Germany—8.1% | ||||||||||
Allianz SE | 2,205 | 246,331 | ||||||||
BASF SE | 1,960 | 142,447 | ||||||||
Bayer AG | 2,914 | 185,855 | ||||||||
Bayerische Motoren Werke AG | 2,063 | 168,126 | ||||||||
Brenntag AG | 1,889 | 189,976 | ||||||||
Continental AG* | 1,630 | 121,361 | ||||||||
Daimler AG | 3,198 | 162,467 | ||||||||
Deutsche Bank AG | 7,386 | 307,024 | ||||||||
E.ON AG | 11,149 | 269,543 | ||||||||
Fraport AG | 14,260 | 894,665 | ||||||||
Fresenius SE | 7,331 | 720,581 | ||||||||
Henkel AG & Co. KGaA | 356 | 17,397 | ||||||||
SAP AG | 4,701 | 283,281 | ||||||||
Siemens AG | 2,831 | 296,715 | ||||||||
Hong Kong—6.7% | ||||||||||
Belle International Holdings Ltd. | 520,000 | 1,003,333 | ||||||||
China Merchants Holdings International Company Ltd. | 134,970 | 416,866 | ||||||||
China Resources Enterprise Ltd. | 154,000 | 560,066 | ||||||||
Geely Automobile Holdings Ltd. | 720,000 | 179,277 | ||||||||
Hang Lung Properties Ltd. | 222,000 | 807,985 | ||||||||
Li & Fung Ltd. | 162,000 | 312,723 | ||||||||
The United Laboratories International Holdings Ltd. | 54,000 | 41,348 |
Common stocks—95.4% | Shares | Value | ||||||||
India—5.7% | ||||||||||
Axis Bank Ltd., Sponsored GDR | 32,372 | $756,916 | ||||||||
Dr Reddy’s Laboratories Ltd., Sponsored ADR | 7,645 | 253,432 | ||||||||
HDFC Bank Ltd., Sponsored ADR | 18,323 | 580,106 | ||||||||
Larsen & Toubro Ltd., Sponsored GDR | 28,351 | 782,466 | ||||||||
Mahindra & Mahindra Ltd., Sponsored GDR | 16,564 | 291,112 | ||||||||
State Bank of India, Sponsored GDR | 1,811 | 141,307 | ||||||||
Ireland—0.8% | ||||||||||
CRH PLC | 7,748 | 138,885 | ||||||||
WPP PLC | 26,677 | 276,481 | ||||||||
Israel—0.4% | ||||||||||
Teva Pharmaceutical Industries Ltd., Sponsored ADR | 4,581 | 187,134 | ||||||||
Italy—1.4% | ||||||||||
ENI SpA | 10,063 | 221,593 | ||||||||
Intesa Sanpaolo SpA | 27,303 | 48,173 | ||||||||
Saipem SpA | 9,577 | 425,446 | ||||||||
Japan—8.6% | ||||||||||
Aisin Seiki Company Ltd. | 1,401 | 44,507 | ||||||||
Canon, Inc. | 2,873 | 131,199 | ||||||||
Daikin Industries Ltd. | 990 | 29,329 | ||||||||
Fanuc Ltd. | 2,900 | 468,276 | ||||||||
Honda Motor Company Ltd. | 6,890 | 207,676 | ||||||||
Isuzu Motors Ltd. | 37,000 | 157,352 | ||||||||
ITOCHU Corporation | 18,900 | 186,401 | ||||||||
KDDI Corporation | 26 | 190,208 | ||||||||
Komatsu Ltd. | 20,300 | 499,825 | ||||||||
Mitsubishi Corporation | 8,600 | 177,025 | ||||||||
Mitsubishi Electric Corporation | 18,000 | 165,745 | ||||||||
Mitsui & Company Ltd. | 3,700 | 53,989 | ||||||||
Nissan Motor Company Ltd. | 24,400 | 224,794 | ||||||||
Nitto Denko Corporation | 1,100 | 46,297 | ||||||||
SMC Corporation | 1,200 | 186,967 | ||||||||
Softbank Corporation | 8,200 | 266,771 | ||||||||
Suzuki Motor Corporation | 13,200 | 281,467 | ||||||||
Toyota Motor Corporation | 10,941 | 365,820 | ||||||||
Unicharm Corporation | 12,516 | 562,179 | ||||||||
Luxembourg—0.7% | ||||||||||
L’Occitane International SA | 100,014 | 219,968 | ||||||||
SES SA, FDR | 5,762 | 147,011 | ||||||||
Macau—1.2% | ||||||||||
Sands China Ltd.* | 122,800 | 361,311 | ||||||||
Wynn Macau Ltd. | 78,400 | 215,299 | ||||||||
Netherlands—4.6% | ||||||||||
ASML Holding NV | 2,333 | 97,419 | ||||||||
ING Groep NV* | 63,672 | 551,524 | ||||||||
Royal Dutch Shell PLC, Class A | 34,173 | 1,206,972 | ||||||||
Unilever NV | 11,733 | 403,466 | ||||||||
Russian Federation—1.6% | ||||||||||
Pharmstandard OJSC, Sponsored GDR* | 5,620 | 99,582 | ||||||||
Sberbank | 181,292 | 502,234 | ||||||||
VTB Bank OJSC, Sponsored GDR | 37,485 | 177,582 | ||||||||
South Africa—0.2% | ||||||||||
Shoprite Holdings Ltd. | 6,407 | 93,400 | ||||||||
South Korea—0.9% | ||||||||||
Celltrion, Inc. | 12,832 | 429,895 |
The accompanying notes are an integral part of the financial statements. | 23 |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE INTERNATIONAL EQUITY FUND (cont’d) | ||||||||||
Common stocks—95.4% | Shares | Value | ||||||||
Spain—0.5% | ||||||||||
Banco Bilbao Vizcaya Argentaria SA | 8,262 | $74,326 | ||||||||
Banco Santander SA | 17,192 | 146,942 | ||||||||
Sweden—1.1% | ||||||||||
Atlas Copco AB, Class A | 11,275 | 245,173 | ||||||||
Elekta AB, Class B | 7,393 | 293,993 | ||||||||
Switzerland—6.9% | ||||||||||
Cie Financiere Richemont SA | 2,062 | 116,997 | ||||||||
Dufry AG* | 4,084 | 436,257 | ||||||||
Flughafen Zuerich AG | 294 | 112,730 | ||||||||
Nestle SA | 8,486 | 491,082 | ||||||||
Novartis AG | 10,783 | 609,415 | ||||||||
Swiss Re AG* | 5,593 | 305,916 | ||||||||
Syngenta AG* | 1,638 | 501,029 | ||||||||
The Swatch Group AG | 1,038 | 435,244 | ||||||||
UBS AG* | 10,662 | 134,505 | ||||||||
Xstrata PLC | 16,460 | 274,215 | ||||||||
United Arab Emirates—1.2% | ||||||||||
Dragon Oil PLC | 68,124 | 606,285 | ||||||||
Total common stocks (cost $42,843,789) | 47,096,644 | |||||||||
Preferred stocks—1.2% | ||||||||||
Germany—1.2% | ||||||||||
Henkel AG & Co. KGaA | 2,562 | 152,025 | ||||||||
Volkswagen AG | 2,561 | 448,016 | ||||||||
Total preferred stocks (cost $354,557) | 600,041 | |||||||||
Total investment portfolio (cost $43,198,346) 96.6% | 47,696,685 | |||||||||
Other assets in excess of liabilities 3.4% | 1,694,682 | |||||||||
Total net assets 100.0% | $49,391,367 | |||||||||
* Non-income producing security (a) Restricted security deemed to be illiquid for purposes of compliance limitations on holdings of illiquid securities. At October 31, 2011, this security aggregated $3,639 or 0.0% of the net assets of the Fund. |
| |||||||||
ADR—American depository receipt FDR—Fiduciary Depositary Receipt GDR—Global depository receipt |
Sector allocation (unaudited) | ||||
Sector | Percent of net assets | |||
Consumer, non-cyclical | 19.4% | |||
Consumer, cyclical | 16.7% | |||
Basic materials | 12.0% | |||
Financial | 11.8% | |||
Industrial | 11.6% | |||
Energy | 11.0% | |||
Communications | 7.6% | |||
Diversified | 3.8% | |||
Technology | 1.5% | |||
Utilities | 1.2% |
Forward foreign currency contracts outstanding | ||||||||||||||||||||||
Contract to deliver | Counterparty | In exchange for | Delivery date | Unrealized appreciation (depreciation) | ||||||||||||||||||
EUR | 102,344 | Credit Suisse First Boston | USD | 140,019 | 12/21/11 | $1,541 | ||||||||||||||||
EUR | 355,625 | Deutsche Bank AG | USD | 499,490 | 12/21/11 | (7,599 | ) | |||||||||||||||
EUR | 757,925 | Deutsche Bank AG | USD | 1,033,490 | 12/21/11 | 14,851 | ||||||||||||||||
EUR | 1,825,399 | UBS AG Stamford | USD | 2,491,689 | 12/21/11 | 33,153 | ||||||||||||||||
EUR | 225,920 | Deutsche Bank AG | USD | 319,531 | 12/21/11 | (7,043 | ) | |||||||||||||||
EUR | 731,821 | Credit Suisse First Boston | USD | 1,038,686 | 12/21/11 | (26,450 | ) | |||||||||||||||
EUR | 1,775,325 | Deutsche Bank AG | USD | 2,516,026 | 12/21/11 | (60,444 | ) | |||||||||||||||
EUR | 700,007 | Credit Suisse First Boston | USD | 954,807 | 12/21/11 | 13,424 | ||||||||||||||||
USD | 1,611,323 | Deutsche Bank AG | EUR | 1,174,912 | 12/21/11 | (13,784 | ) | |||||||||||||||
USD | 870,673 | Credit Suisse First Boston | EUR | 627,854 | 12/21/11 | 2,242 | ||||||||||||||||
USD | 531,462 | Goldman Sachs | CHF | 463,244 | 12/21/11 | 3,320 | ||||||||||||||||
USD | 540,777 | UBS AG Stamford | CHF | 476,222 | 12/21/11 | (2,161 | ) | |||||||||||||||
USD | 998,991 | Credit Suisse First Boston | EUR | 724,841 | 12/21/11 | (3,590 | ) | |||||||||||||||
USD | 1,315,254 | Deutsche Bank AG | EUR | 955,010 | 12/21/11 | (5,690 | ) | |||||||||||||||
USD | 2,451,798 | UBS AG Stamford | EUR | 1,825,399 | 12/21/11 | (73,045 | ) | |||||||||||||||
USD | 1,440,496 | Deutsche Bank AG | EUR | 1,040,257 | 12/21/11 | 1,640 | ||||||||||||||||
USD | 2,574,239 | Credit Suisse First Boston | EUR | 1,936,709 | 12/21/11 | (104,565 | ) | |||||||||||||||
Net unrealized depreciation | $(234,200) | |||||||||||||||||||||
CHF—Switzerland Franc | ||||||||||||||||||||||
EUR—Euro | ||||||||||||||||||||||
USD—United States Dollar |
Industry allocation (unaudited) | ||||||||
Industry | Value | Percent of net assets | ||||||
Oil & gas | $4,630,563 | 9.4% | ||||||
Mining | 3,990,542 | 8.1% | ||||||
Banks | 3,939,294 | 8.0% |
24 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE INTERNATIONAL EQUITY FUND (cont’d) |
Industry allocation (unaudited) (cont’d) | ||||||||
Industry | Value | Percent of net assets | ||||||
Retail | $3,412,057 | 6.9% | ||||||
Pharmaceuticals | 2,990,829 | 6.1% | ||||||
Auto manufacturers | 2,802,734 | 5.7% | ||||||
Engineering & construction | 2,147,167 | 4.3% | ||||||
Food | 1,947,372 | 3.9% | ||||||
Chemicals | 1,915,956 | 3.9% | ||||||
Holding companies-diversified | 1,884,139 | 3.8% | ||||||
Healthcare products | 1,764,028 | 3.6% | ||||||
Internet | 1,726,806 | 3.5% | ||||||
Telecommunications | 1,609,922 | 3.3% | ||||||
Insurance | 1,103,771 | 2.2% | ||||||
Machinery-construction & mining | 1,024,895 | 2.1% | ||||||
Electrical components & equipment | 893,227 | 1.8% | ||||||
Real estate | 807,985 | 1.6% | ||||||
Cosmetics/personal care | 782,147 | 1.6% | ||||||
Oil & gas services | 766,044 | 1.6% | ||||||
Distribution/wholesale | 730,138 | 1.5% | ||||||
Agriculture | 636,242 | 1.3% | ||||||
Electric | 605,832 | 1.2% | ||||||
Lodging | 576,610 | 1.2% | ||||||
Beverages | 512,046 | 1.0% | ||||||
Household products/wares | 495,441 | 1.0% | ||||||
Machinery-diversified | 468,276 | 0.9% | ||||||
Advertising | 456,521 | 0.9% | ||||||
Biotechnology | 429,895 | 0.9% | ||||||
Aerospace/defense | 372,155 | 0.8% | ||||||
Semiconductors | 313,772 | 0.6% | ||||||
Miscellaneous manufacturer | 296,715 | 0.6% | ||||||
Software | 283,281 | 0.6% | ||||||
Apparel | 273,246 | 0.5% | ||||||
Building materials | 261,709 | 0.5% | ||||||
Food service | 255,192 | 0.5% | ||||||
Hand/machine tools | 186,967 | 0.4% | ||||||
Auto parts & equipment | 165,868 | 0.3% | ||||||
Office/business equipment | 131,199 | 0.3% | ||||||
Transportation | 106,102 | 0.2% | ||||||
Total investment portfolio | $47,696,685 | 96.6% |
The accompanying notes are an integral part of the financial statements. | 25 |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE INVESTMENT GRADE BOND FUND (cont’d) | ||||||||||
Corporate bonds—57.4% | Principal amount (in thousands) | Value | ||||||||
Healthcare products—3.1% | ||||||||||
Baxter International, Inc., 5.38%, 06/01/18 | $1,000 | $1,181,676 | ||||||||
Becton, Dickinson and Company, 3.25%, 11/12/20 | 1,000 | 1,023,214 | ||||||||
CR Bard, Inc., 4.40%, 01/15/21 | 1,000 | 1,122,473 | ||||||||
Stryker Corporation, 2.00%, 09/30/16 | 250 | 252,806 | ||||||||
Healthcare services—0.9% | ||||||||||
WellPoint, Inc., 2.38%, 02/15/17 | 1,000 | 990,894 | ||||||||
Insurance—1.1% | ||||||||||
AON Corporation, 3.50%, 09/30/15 | 1,000 | 1,036,243 | ||||||||
Marsh & McLennan Companies, Inc., 4.80%, 07/15/21 | 250 | 269,587 | ||||||||
Internet—1.8% | ||||||||||
Google, Inc., 3.63%, 05/19/21 | 1,000 | 1,081,299 | ||||||||
Symantec Corporation, 2.75%, 09/15/15 | 1,000 | 1,010,618 | ||||||||
Media—0.9% | ||||||||||
The Walt Disney Company, 1.35%, 08/16/16 | 1,000 | 997,228 | ||||||||
Mining—1.0% | ||||||||||
Newmont Mining Corporation, 5.13%, 10/01/19 | 1,000 | 1,105,957 | ||||||||
Pharmaceuticals—2.6% | ||||||||||
Allergan, Inc., 3.38%, 09/15/20 | 750 | 776,174 | ||||||||
McKesson Corporation, 5.70%, 03/01/17 | 1,000 | 1,168,987 | ||||||||
Merck & Company, Inc., 2.25%, 01/15/16 | 1,000 | 1,036,204 | ||||||||
Retail—0.8% | ||||||||||
McDonald’s Corporation, 5.80%, 10/15/17 | 750 | 908,647 | ||||||||
Semiconductors—3.4% | ||||||||||
Broadcom Corporation, 1.50%, 11/01/13 | 1,000 | 1,014,580 | ||||||||
Intel Corporation, 3.30%, 10/01/21 | 1,000 | 1,032,032 | ||||||||
Texas Instruments, Inc., 2.38%, 05/16/16 | 1,750 | 1,809,887 | ||||||||
Software—2.5% | ||||||||||
Fiserv, Inc., 3.13%, 10/01/15 | 1,000 | 1,019,016 | ||||||||
Microsoft Corporation, 2.95%, 06/01/14 | 1,000 | 1,060,893 | ||||||||
Oracle Corporation, 144A, 3.88%, 07/15/20 | 750 | 813,356 | ||||||||
Transportation—0.9% | ||||||||||
Norfolk Southern Corporation, 5.90%, 06/15/19 | 600 | 721,974 | ||||||||
Union Pacific Corporation, 5.70%, 08/15/18 | 250 | 293,569 | ||||||||
Total domestic corporate bonds (cost $53,341,240) | 54,852,961 | |||||||||
Foreign—9.5% | ||||||||||
Banks—2.3% | ||||||||||
Royal Bank of Canada, 2.88%, 04/19/16 | 1,500 | 1,556,393 | ||||||||
The Toronto-Dominion Bank, 2.50%, 07/14/16 | 1,000 | 1,023,652 | ||||||||
Chemicals—0.5% | ||||||||||
Potash Corp of Saskatchewan, Inc., 3.25%, 12/01/17 | 500 | 520,729 | ||||||||
Insurance—0.9% | ||||||||||
Willis Group Holdings Ltd., 4.13%, 03/15/16 | 1,000 | 1,025,479 | ||||||||
Mining—0.6% | ||||||||||
Gold Fields Orogen Holding BVI Ltd., 144A, 4.88%, 10/07/20 | 750 | 698,436 | ||||||||
Oil & gas—3.5% | ||||||||||
Shell International Finance BV, FRN, 0.71%, 06/22/12 | 2,000 | 2,005,426 | ||||||||
Total Capital Canada Ltd., FRN, 0.78%, 01/17/14 | 2,000 | 2,008,172 | ||||||||
Pharmaceuticals—1.7% | ||||||||||
Teva Pharmaceutical Finance III BV, FRN, 0.85%, 03/21/14 | 2,000 | 1,999,676 | ||||||||
Total foreign corporate bonds (cost $10,748,148) | 10,837,963 | |||||||||
Total corporate bonds (cost $64,089,388) | 65,690,924 |
U.S. Treasuries—14.9% | Principal amount (in thousands) | Value | ||||||||
U.S. Treasury Note, 0.25%, 09/15/14 | $1,000 | $995,630 | ||||||||
U.S. Treasury Note, 1.00%, 09/30/16 | 1,250 | 1,250,875 | ||||||||
U.S. Treasury Note, 1.25%, 08/31/15 | 4,250 | 4,349,611 | ||||||||
U.S. Treasury Note, 2.00%, 04/30/16 | 3,750 | 3,941,025 | ||||||||
U.S. Treasury Note, 2.13%, 05/31/15 | 4,250 | 4,484,090 | ||||||||
U.S. Treasury Note, 2.13%, 08/15/21 | 1,000 | 995,630 | ||||||||
U.S. Treasury Note, 2.38%, 07/31/17 | 1,000 | 1,062,500 | ||||||||
Total U.S. Treasuries (cost $16,571,822) | 17,079,361 | |||||||||
Mortgage-backed obligations—13.2% | ||||||||||
Domestic—5.2% | ||||||||||
Commercial mortgage-backed obligations—2.7% | ||||||||||
Credit Suisse First Boston Mortgage Securities Corporation, Series 2005-C5, Class A3, FRN, 5.10%, 08/15/38 | 439 | 448,580 | ||||||||
JP Morgan Chase Commercial Mortgage Securities Corporation, Series 2002-C3, Class A2, 4.99%, 07/12/35 | 476 | 490,608 | ||||||||
JP Morgan Chase Commercial Mortgage Securities Corporation, Series 2003-PM1A, Class A4, FRN, 5.33%, 08/12/40 | 230 | 242,125 | ||||||||
LB-UBS Commercial Mortgage Trust, Series 2003-C7, Class A2, FRN, 4.06%, 09/15/27 | 16 | 15,630 | ||||||||
Merrill Lynch Mortgage Investors, Inc., Series 1998-C1, Class A3, FRN, 6.72%, 11/15/26 | 214 | 234,496 | ||||||||
Morgan Stanley Capital I, 144A, Series 2011-C1, Class A2, 3.88%, 09/15/47 | 1,000 | 1,039,823 | ||||||||
Morgan Stanley Capital I, Series 2003-T11, Class A4, 5.15%, 06/13/41 | 505 | 529,591 | ||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2003-C6, Class A3, FRN, 4.96%, 08/15/35 | 126 | 125,721 | ||||||||
Federal agency mortgage-backed obligations—2.5% | ||||||||||
Fannie Mae, REMICs, Series 2006-63, Class AB, 6.50%, 10/25/33 | 7 | 7,418 | ||||||||
Fannie Mae, REMICs, Series 2006-B1, Class AB, 6.00%, 06/25/16 | 94 | 94,802 | ||||||||
Fannie Mae, REMICs, Series 2007-11, Class AB, 5.69%, 01/25/32 | 293 | 303,731 | ||||||||
Fannie Mae, REMICs, Series 2007-118, Class AB, 5.00%, 04/25/35 | 450 | 468,555 | ||||||||
Freddie Mac, REMICs, Series 2628, Class AB, 4.50%, 06/15/18 | 225 | 238,661 | ||||||||
Freddie Mac, REMICs, Series 2885, Class LC, 4.50%, 04/15/34 | 415 | 445,289 | ||||||||
Freddie Mac, REMICs, Series 3114, Class GC, 5.00%, 01/15/34 | 160 | 164,027 | ||||||||
Freddie Mac, REMICs, Series 3456, Class CG, 5.00%, 01/15/35 | 336 | 347,297 | ||||||||
Freddie Mac, REMICs, Series R005, Class AB, 5.50%, 12/15/18 | 66 | 67,832 | ||||||||
Freddie Mac, REMICs, Series R006, Class AK, 5.75%, 12/15/18 | 159 | 162,487 | ||||||||
Ginnie Mae, REMICs, Series 2004-86, Class PK, 4.00%, 09/20/34 | 464 | 494,909 | ||||||||
Total domestic mortgage-backed obligations (cost $5,864,477) | 5,921,582 |
26 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE INVESTMENT GRADE BOND FUND (cont’d) | ||||||||||
Mortgage-backed obligations—13.2% | Principal amount (in thousands) | Value | ||||||||
Foreign—8.0% | ||||||||||
Covered bonds—8.0% | ||||||||||
Bank of Montreal, 144A, 2.63%, 01/25/16 | $1,000 | $1,037,284 | ||||||||
Bank of Nova Scotia, 144A, 2.15%, 08/03/16 | 1,000 | 1,010,836 | ||||||||
Credit Suisse AG/Guernsey, 144A, 2.60%, 05/27/16 | 1,000 | 1,016,844 | ||||||||
DnB NOR Boligkreditt, 144A, 2.10%, 10/14/15 | 1,000 | 1,010,029 | ||||||||
Nordea Eiendomskreditt AS, 144A, 1.88%, 04/07/14 | 1,000 | 1,011,910 | ||||||||
Sparebank 1 Boligkreditt AS, 144A, 2.63%, 05/27/16 | 1,000 | 1,016,976 | ||||||||
Stadshypotek AB, 144A, 1.45%, 09/30/13 | 1,000 | 1,006,133 | ||||||||
Swedbank Hypotek AB, 144A, 2.95%, 03/28/16 | 1,000 | 1,032,572 | ||||||||
The Toronto-Dominion Bank, 144A, 2.20%, 07/29/15 | 1,000 | 1,024,439 | ||||||||
Total foreign mortgage-backed obligations (cost $9,000,969) | 9,167,023 | |||||||||
Total mortgage-backed obligations (cost $14,865,446) | 15,088,605 | |||||||||
U.S. Government agency securities—5.7% | ||||||||||
Fixed rate U.S. Government agency securities—3.0% | ||||||||||
Private Export Funding Corporation, 2.25%, 12/15/17 | 1,000 | 1,026,485 | ||||||||
Tennessee Valley Authority, 5.50%, 07/18/17 | 2,000 | 2,410,518 | ||||||||
Government-backed corporate bonds—2.7% | ||||||||||
John Deere Capital Corporation, FDIC, 2.88%, 06/19/12 | 3,000 | 3,050,643 | ||||||||
Total U.S. Government agency securities (cost $6,345,897) | 6,487,646 | |||||||||
Foreign government securities—2.9% | ||||||||||
Egypt Government AID Bonds, 4.45%, 09/15/15 | 2,000 | 2,247,280 | ||||||||
Province of Ontario Canada, 3.00%, 07/16/18 | 1,000 | 1,035,038 | ||||||||
Total foreign government securities (cost $3,230,756) | 3,282,318 | |||||||||
Supranational banks—2.7% | ||||||||||
Inter-American Development Bank, 2.25%, 07/15/15 | 1,000 | 1,044,461 | ||||||||
International Bank for Reconstruction & Development, 2.38%, 05/26/15 | 1,000 | 1,052,117 | ||||||||
Nordic Investment Bank, 2.50%, 07/15/15 | 1,000 | 1,056,328 | ||||||||
Total supranational banks (cost $3,011,462) | 3,152,906 | |||||||||
Total investment portfolio (cost $108,114,771) 96.8% | 110,781,760 | |||||||||
Other assets in excess of liabilities 3.2% | 3,710,503 | |||||||||
Total net assets 100.0% | $114,492,263 | |||||||||
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 October 31, 2011, these securities aggregated $14,755,773 or 12.9% of the net assets of the Fund. | ||||||||||
FDIC—Federal deposit insurance corporation | ||||||||||
FRN—Floating rate notes reset their interest rates on a semiannual or quarterly basis. | ||||||||||
REMIC—Real estate mortgage investment conduit |
Standard & Poor’s bond ratings (unaudited) | ||||
Bond rating | Percent of net assets | |||
AAA | 7.2% | |||
AA | 36.0% | |||
A | 30.0% | |||
BBB | 16.5% | |||
Not rated | 7.1% |
The accompanying notes are an integral part of the financial statements. | 27 |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE LARGE CAP CORE FUND (cont’d) | ||||||||||
Common stocks—90.9% | Shares | Value | ||||||||
Oil & gas services—1.6% | ||||||||||
Schlumberger Ltd. | 4,883 | $358,754 | ||||||||
Pharmaceuticals—5.3% | ||||||||||
Johnson & Johnson | 6,914 | 445,192 | ||||||||
Pfizer, Inc. | 39,809 | 766,721 | ||||||||
Real estate investment trusts—1.3% | ||||||||||
Annaly Capital Management, Inc. | 18,226 | 307,108 | ||||||||
Retail—9.8% | ||||||||||
Bed Bath & Beyond, Inc.* | 10,310 | 637,570 | ||||||||
Lowe’s Companies, Inc. | 33,478 | 703,708 | ||||||||
Staples, Inc. | 28,869 | 431,880 | ||||||||
Wal-Mart Stores, Inc. | 7,922 | 449,336 | ||||||||
Semiconductors—1.5% | ||||||||||
QUALCOMM, Inc. | 6,699 | 345,668 | ||||||||
Software—8.2% | ||||||||||
Activision Blizzard, Inc. | 47,751 | 639,386 | ||||||||
Microsoft Corporation | 17,003 | 452,790 | ||||||||
Oracle Corporation | 23,760 | 778,615 | ||||||||
Telecommunications—2.0% | ||||||||||
Cisco Systems, Inc. | 11,024 | 204,275 | ||||||||
Sprint Nextel Corporation* | 96,893 | 249,015 | ||||||||
Transportation—1.6% | ||||||||||
Union Pacific Corporation | 3,665 | 364,924 | ||||||||
Total common stocks (cost $18,811,916) | 20,702,890 | |||||||||
Investment companies—1.4% | ||||||||||
Materials Select Sector SPDR ETF | 9,615 | 330,852 | ||||||||
Total investment companies (cost $320,430) | 330,852 | |||||||||
Total investment portfolio (cost $19,132,346) 92.3% | 21,033,742 | |||||||||
Other assets in excess of liabilities 7.7% | 1,749,508 | |||||||||
Net assets 100.0% | $22,783,250 | |||||||||
* Non-income producing security | ||||||||||
ETF—Exchange-traded fund SPDR—Standard & Poor’s Depositary Receipt |
Sector allocation (unaudited) | ||||
Sector | Percent of net assets | |||
Consumer, non-cyclical | 20.1% | |||
Technology | 18.4% | |||
Financial | 12.9% | |||
Energy | 11.7% | |||
Consumer, cyclical | 9.8% | |||
Communications | 8.7% | |||
Industrial | 7.2% | |||
Utilities | 2.0% | |||
Funds | 1.5% |
28 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE MID CAP GROWTH FUND (cont’d) | ||||||||||
Common stocks—98.5% | Shares | Value | ||||||||
Leisure time—1.4% | ||||||||||
Royal Caribbean Cruises Ltd. | 187,205 | $5,563,733 | ||||||||
Lodging—2.9% | ||||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 36,615 | 1,834,778 | ||||||||
Wynn Resorts Ltd. | 69,818 | 9,271,830 | ||||||||
Machinery-diversified—1.3% | ||||||||||
AGCO Corporation* | 74,130 | 3,249,118 | ||||||||
Gardner Denver, Inc. | 25,015 | 1,934,410 | ||||||||
Mining—2.5% | ||||||||||
Titanium Metals Corporation | 580,450 | 9,722,537 | ||||||||
Miscellaneous manufacturer—2.0% | ||||||||||
Colfax Corporation* | 76,845 | 1,941,105 | ||||||||
Hexcel Corporation* | 75,425 | 1,863,752 | ||||||||
Parker-Hannifin Corporation | 48,375 | 3,944,981 | ||||||||
Oil & gas—6.7% | ||||||||||
Brigham Exploration Company* | 130,605 | 4,755,981 | ||||||||
Cabot Oil & Gas Corporation | 51,360 | 3,991,699 | ||||||||
Concho Resources, Inc.* | 46,740 | 4,427,213 | ||||||||
Continental Resources, Inc.* | 112,430 | 6,818,879 | ||||||||
HollyFrontier Corporation | 76,640 | 2,352,082 | ||||||||
Rowan Companies, Inc.* | 106,390 | 3,669,391 | ||||||||
Oil & gas services—1.5% | ||||||||||
Dresser-Rand Group, Inc.* | 74,915 | 3,625,886 | ||||||||
Oil States International, Inc.* | 29,281 | 2,038,250 | ||||||||
Pharmaceuticals—9.0% | ||||||||||
AmerisourceBergen Corporation | 203,505 | 8,303,004 | ||||||||
Catalyst Health Solutions, Inc.* | 29,495 | 1,621,340 | ||||||||
Herbalife Ltd. | 187,155 | 11,670,986 | ||||||||
Mylan, Inc.* | 369,580 | 7,232,681 | ||||||||
SXC Health Solutions Corporation* | 129,065 | 6,042,823 | ||||||||
Retail—7.4% | ||||||||||
Chipotle Mexican Grill, Inc.* | 10,285 | 3,456,994 | ||||||||
Dollar Tree, Inc.* | 123,025 | 9,837,079 | ||||||||
GNC Holdings, Inc., Class A* | 278,430 | 6,891,143 | ||||||||
Sally Beauty Holdings, Inc.* | 433,995 | 8,328,364 | ||||||||
Semiconductors—4.8% | ||||||||||
ARM Holdings PLC, Sponsored ADR | 183,735 | 5,161,116 | ||||||||
Lam Research Corporation* | 75,425 | 3,242,521 | ||||||||
Linear Technology Corporation | 91,615 | 2,960,081 | ||||||||
Rovi Corporation* | 145,415 | 7,203,859 | ||||||||
Software—11.6% | ||||||||||
ANSYS, Inc.* | 152,955 | 8,314,634 | ||||||||
Autodesk, Inc.* | 159,035 | 5,502,611 | ||||||||
Cerner Corporation* | 141,768 | 8,992,344 | ||||||||
Check Point Software Technologies Ltd.* | 61,020 | 3,516,583 | ||||||||
Concur Technologies, Inc.* | 77,705 | 3,614,837 | ||||||||
Informatica Corporation* | 129,140 | 5,875,870 | ||||||||
MSCI, Inc., Class A* | 152,370 | 5,087,634 | ||||||||
Red Hat, Inc.* | 78,300 | 3,887,595 | ||||||||
Telecommunications—2.3% | ||||||||||
Polycom, Inc.* | 134,141 | 2,217,351 | ||||||||
SBA Communications Corporation, Class A* | 174,965 | 6,664,417 |
Common stocks—98.5% | Shares | Value | ||||||||
Transportation—1.0% | ||||||||||
Tidewater, Inc. | 78,250 | $3,852,247 | ||||||||
Total common stocks (cost $323,517,750) | 380,333,523 | |||||||||
Total investment portfolio (cost $323,517,750) 98.5% | 380,333,523 | |||||||||
Other assets in excess of liabilities 1.5% | 5,801,300 | |||||||||
Net assets 100.0% | $386,134,823 | |||||||||
* Non-income producing security | ||||||||||
ADR—American depository receipt |
Sector allocation (unaudited) | ||||
Sector | Percent of net assets | |||
Technology | 18.8% | |||
Consumer, cyclical | 18.6% | |||
Consumer, non-cyclical | 17.3% | |||
Industrial | 15.9% | |||
Energy | 8.8% | |||
Basic materials | 7.2% | |||
Communications | 6.9% | |||
Financial | 5.0% |
The accompanying notes are an integral part of the financial statements. | 29 |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE MID CAP STOCK FUND (cont’d) | ||||||||||
Common stocks—99.3% | Shares | Value | ||||||||
Distribution/wholesale—1.0% | ||||||||||
WW Grainger, Inc. | 60,142 | $10,302,926 | ||||||||
Diversified financial services—3.2% | ||||||||||
IntercontinentalExchange, Inc.* | 92,958 | 12,073,385 | ||||||||
SLM Corporation | 1,377,765 | 18,834,048 | ||||||||
Electric—3.8% | ||||||||||
ITC Holdings Corporation | 224,465 | 16,314,116 | ||||||||
NRG Energy, Inc.* | 453,488 | 9,713,713 | ||||||||
Pinnacle West Capital Corporation | 256,044 | 11,670,486 | ||||||||
Electrical components & equipment—1.2% | ||||||||||
AMETEK, Inc. | 288,076 | 11,384,764 | ||||||||
Electronics—2.3% | ||||||||||
Agilent Technologies, Inc.* | 269,460 | 9,988,882 | ||||||||
Amphenol Corporation, Class A | 261,432 | 12,415,406 | ||||||||
Healthcare products—2.2% | ||||||||||
Cepheid, Inc.* | 312,903 | 11,226,960 | ||||||||
St. Jude Medical, Inc. | 268,446 | 10,469,394 | ||||||||
Healthcare services—3.1% | ||||||||||
DaVita, Inc.* | 162,770 | 11,393,900 | ||||||||
Laboratory Corporation of America Holdings* | 113,332 | 9,502,888 | ||||||||
Mednax, Inc.* | 145,670 | 9,585,086 | ||||||||
Household products/wares—0.8% | ||||||||||
Church & Dwight Company, Inc. | 171,179 | 7,562,688 | ||||||||
Insurance—6.3% | ||||||||||
Allied World Assurance Company Holdings AG | 369,969 | 21,495,199 | ||||||||
PartnerRe Ltd. | 166,139 | 10,337,169 | ||||||||
Reinsurance Group of America, Inc. | 195,592 | 10,215,770 | ||||||||
Willis Group Holdings PLC | 272,075 | 9,879,043 | ||||||||
XL Group PLC | 443,945 | 9,651,364 | ||||||||
Internet—3.5% | ||||||||||
Expedia, Inc. | 600,730 | 15,775,170 | ||||||||
IAC/InterActive Corporation* | 466,334 | 19,040,417 | ||||||||
Iron/steel—0.8% | ||||||||||
Reliance Steel & Aluminum Company | 171,985 | 7,600,017 | ||||||||
Leisure time—0.5% | ||||||||||
Polaris Industries, Inc. | 80,415 | 5,093,486 | ||||||||
Lodging—1.5% | ||||||||||
Wyndham Worldwide Corporation | 444,627 | 14,970,591 | ||||||||
Machinery-diversified—1.2% | ||||||||||
Gardner Denver, Inc. | 158,419 | 12,250,541 | ||||||||
Media—7.4% | ||||||||||
DISH Network Corporation, Class A* | 514,379 | 12,432,540 | ||||||||
John Wiley & Sons, Inc., Class A | 440,147 | 20,933,391 | ||||||||
Liberty Media Corporation—Liberty Starz, Series A* | 295,709 | 20,196,925 | ||||||||
Nielsen Holdings NV* | 633,049 | 18,579,988 | ||||||||
Miscellaneous manufacturer—1.5% | ||||||||||
Pall Corporation | 286,121 | 14,640,812 | ||||||||
Oil & gas—4.2% | ||||||||||
Continental Resources, Inc.* | 158,838 | 9,633,525 | ||||||||
EQT Corporation | 243,875 | 15,486,062 | ||||||||
QEP Resources, Inc. | 444,588 | 15,805,103 | ||||||||
Oil & gas services—2.1% | ||||||||||
Oil States International, Inc.* | 300,483 | 20,916,622 |
Common stocks—99.3% | Shares | Value | ||||||||
Packaging & containers—3.2% | ||||||||||
Crown Holdings, Inc.* | 351,511 | $11,877,557 | ||||||||
Rock-Tenn Company, Class A | 330,816 | 19,580,999 | ||||||||
Pharmaceuticals—5.1% | ||||||||||
Catalyst Health Solutions, Inc.* | 172,357 | 9,474,464 | ||||||||
McKesson Corporation | 255,399 | 20,827,788 | ||||||||
Medicis Pharmaceutical Corporation, Class A | 253,465 | 9,705,175 | ||||||||
Mylan, Inc.* | 514,215 | 10,063,188 | ||||||||
Private equity—1.1% | ||||||||||
The Blackstone Group LP | 763,378 | 11,229,290 | ||||||||
Real estate investment trusts—4.8% | ||||||||||
LaSalle Hotel Properties | 500,927 | 11,977,165 | ||||||||
Mid-America Apartment Communities, Inc. | 168,270 | 10,500,048 | ||||||||
Rayonier, Inc. | 362,697 | 15,135,346 | ||||||||
UDR, Inc. | 369,175 | 9,203,533 | ||||||||
Retail—3.7% | ||||||||||
CarMax, Inc.* | 318,030 | 9,559,982 | ||||||||
Macy’s, Inc. | 282,685 | 8,630,373 | ||||||||
Tim Hortons, Inc. | 147,443 | 7,271,889 | ||||||||
Tractor Supply Company | 157,040 | 11,140,418 | ||||||||
Semiconductors—3.7% | ||||||||||
Altera Corporation | 328,130 | 12,442,690 | ||||||||
Avago Technologies Ltd. | 555,229 | 18,750,083 | ||||||||
Lam Research Corporation* | 107,780 | 4,633,462 | ||||||||
Software—3.3% | ||||||||||
Check Point Software Technologies Ltd.* | 329,147 | 18,968,742 | ||||||||
Intuit, Inc. | 243,335 | 13,059,789 | ||||||||
Telecommunications—3.5% | ||||||||||
Crown Castle International Corporation* | 491,398 | 20,324,221 | ||||||||
Plantronics, Inc. | 409,319 | 13,675,348 | ||||||||
Transportation—3.5% | ||||||||||
CH Robinson Worldwide, Inc. | 144,205 | 10,012,153 | ||||||||
JB Hunt Transport Services, Inc. | 248,930 | 10,532,228 | ||||||||
Tidewater, Inc. | 278,730 | 13,721,878 | ||||||||
Total common stocks (cost $900,074,130) | 974,378,978 | |||||||||
Total investment portfolio (cost $900,074,130) 99.3% | 974,378,978 | |||||||||
Other assets in excess of liabilities 0.7% | 6,773,964 | |||||||||
Net assets 100.0% | $981,152,942 | |||||||||
* Non-income producing security |
Sector allocation (unaudited) | ||||
Sector | Percent of net assets | |||
Financial | 18.4% | |||
Consumer, non-cyclical | 18.1% | |||
Industrial | 14.8% | |||
Communications | 14.4% | |||
Technology | 10.9% | |||
Consumer, cyclical | 9.3% | |||
Energy | 6.3% | |||
Utilities | 3.8% | |||
Basic materials | 3.3% |
30 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
10.31.2011 |
Common stocks—95.9% | Shares | Value | ||||||||
Gas—1.9% | ||||||||||
AGL Resources, Inc. | 35,125 | $1,473,143 | ||||||||
Healthcare products—1.8% | ||||||||||
Merit Medical Systems, Inc.* | 104,267 | 1,399,263 | ||||||||
Healthcare services—4.4% | ||||||||||
AMERIGROUP Corporation* | 26,513 | 1,474,918 | ||||||||
Amsurg Corporation* | 47,495 | 1,203,048 | ||||||||
Mednax, Inc.* | 12,205 | 803,089 | ||||||||
Household products/wares—1.0% | ||||||||||
Jarden Corporation | 24,412 | 781,916 | ||||||||
Insurance—3.8% | ||||||||||
Allied World Assurance Company Holdings AG | 9,175 | 533,068 | ||||||||
American Equity Investment Life Holding Company | 85,209 | 923,666 | ||||||||
Assured Guaranty Ltd. | 35,965 | 458,194 | ||||||||
Platinum Underwriters Holdings Ltd. | 11,545 | 399,803 | ||||||||
Tower Group, Inc. | 29,170 | 692,204 | ||||||||
Internet—2.9% | ||||||||||
1-800-Flowers.com, Inc., Class A* | 138,360 | 394,326 | ||||||||
DealerTrack Holdings, Inc.* | 41,613 | 902,586 | ||||||||
Equinix, Inc.* | 10,736 | 1,030,763 | ||||||||
Machinery-diversified—2.4% | ||||||||||
AGCO Corporation* | 14,310 | 627,207 | ||||||||
Altra Holdings, Inc.* | 28,458 | 418,333 | ||||||||
IDEX Corporation | 23,995 | 850,623 | ||||||||
Media—1.3% | ||||||||||
John Wiley & Sons, Inc., Class A | 20,990 | 998,284 | ||||||||
Metal fabricate/hardware—0.5% | ||||||||||
Kaydon Corporation | 13,185 | 414,800 | ||||||||
Mining—2.5% | ||||||||||
AuRico Gold, Inc.* | 85,123 | 828,247 | ||||||||
IAMGOLD Corporation | 51,925 | 1,116,388 | ||||||||
Miscellaneous manufacturer—4.7% | ||||||||||
AptarGroup, Inc. | 16,110 | 772,797 | ||||||||
Barnes Group, Inc. | 40,545 | 943,482 | ||||||||
Harsco Corporation | 46,650 | 1,075,282 | ||||||||
Matthews International Corporation, Class A | 27,050 | 950,537 | ||||||||
Oil & gas—3.2% | ||||||||||
Comstock Resources, Inc.* | 22,940 | 418,426 | ||||||||
Range Resources Corporation | 11,705 | 805,772 | ||||||||
Rosetta Resources, Inc.* | 29,510 | 1,308,473 | ||||||||
Oil & gas services—3.3% | ||||||||||
Dresser-Rand Group, Inc.* | 31,266 | 1,513,274 | ||||||||
Oceaneering International, Inc. | 26,682 | 1,116,108 | ||||||||
Packaging & containers—0.5% | ||||||||||
Silgan Holdings, Inc. | 10,091 | 378,816 | ||||||||
Pharmaceuticals—2.7% | ||||||||||
Herbalife Ltd. | 34,067 | 2,124,418 | ||||||||
Real estate investment trusts—2.6% | ||||||||||
BioMed Realty Trust, Inc. | 27,910 | 505,450 | ||||||||
Campus Crest Communities, Inc. | 43,799 | 500,623 | ||||||||
Government Properties Income Trust | 25,218 | 593,380 | ||||||||
Healthcare Realty Trust, Inc. | 23,895 | 451,377 | ||||||||
Retail—4.9% | ||||||||||
AFC Enterprises, Inc.* | 86,710 | 1,188,794 |
The accompanying notes are an integral part of the financial statements. | 31 |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE SMALL CAP CORE VALUE FUND (cont’d) | ||||||||||
Common stocks—95.9% | Shares | Value | ||||||||
Retail (cont’d) | ||||||||||
Nu Skin Enterprises, Inc., Class A | 23,105 | $1,167,496 | ||||||||
RadioShack Corporation | 58,555 | 697,390 | ||||||||
Stage Stores, Inc. | 51,701 | 808,087 | ||||||||
Savings & loans—3.6% | ||||||||||
BankUnited, Inc. | 48,800 | 1,063,352 | ||||||||
Beneficial Mutual Bancorp, Inc.* | 72,016 | 591,251 | ||||||||
Berkshire Hills Bancorp, Inc. | 30,814 | 616,896 | ||||||||
People’s United Financial, Inc. | 43,920 | 559,980 | ||||||||
Semiconductors—1.5% | ||||||||||
Emulex Corporation* | 52,231 | 437,696 | ||||||||
Intersil Corporation, Class A | 29,090 | 348,207 | ||||||||
Rovi Corporation* | 8,656 | 428,818 | ||||||||
Software—5.0% | ||||||||||
ACI Worldwide, Inc.* | 26,369 | 808,737 | ||||||||
Aspen Technology, Inc.* | 109,337 | 1,895,904 | ||||||||
Avid Technology, Inc.* | 28,025 | 173,755 | ||||||||
Bottomline Technologies, Inc.* | 44,086 | 1,070,849 | ||||||||
Telecommunications—2.8% | ||||||||||
Alaska Communications Systems Group, Inc. | 89,207 | 630,693 | ||||||||
Cbeyond, Inc.* | 44,213 | 364,315 | ||||||||
NeuStar, Inc., Class A* | 27,335 | 868,980 | ||||||||
Neutral Tandem, Inc.* | 34,366 | 362,218 | ||||||||
Transportation—0.8% | ||||||||||
Genesee & Wyoming, Inc., Class A* | 11,390 | 674,402 | ||||||||
Total common stocks (cost $53,837,997) | 75,962,643 | |||||||||
Investment companies—0.4% | ||||||||||
Solar Capital Ltd. | 15,600 | 346,320 | ||||||||
Total investment companies (cost $361,823) | 346,320 | |||||||||
Total investment portfolio (cost $54,199,820) 96.3% | 76,308,963 | |||||||||
Other assets in excess of liabilities 3.7% | 2,901,753 | |||||||||
Net assets 100.0% | $79,210,716 | |||||||||
* Non-income producing security |
Sector allocation (unaudited) | ||||
Sector | Percent of net assets | |||
Consumer, non-cyclical | 21.1% | |||
Financial | 20.3% | |||
Industrial | 15.6% | |||
Technology | 8.8% | |||
Energy | 7.5% | |||
Consumer, cyclical | 7.1% | |||
Communications | 7.0% | |||
Basic materials | 4.9% | |||
Utilities | 4.0% |
32 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Investment Portfolios
10.31.2011 |
EAGLE SMALL CAP GROWTH FUND (cont’d) | ||||||||||
Common stocks—95.5% | Shares | Value | ||||||||
Healthcare products—4.1% | ||||||||||
BIOLASE Technology, Inc.* | 87,818 | $319,658 | ||||||||
Bruker Corporation* | 1,443,298 | 20,826,790 | ||||||||
Sirona Dental Systems, Inc.* | 482,826 | 23,127,365 | ||||||||
Thoratec Corporation* | 516,521 | 18,858,182 | ||||||||
Healthcare services—1.7% | ||||||||||
Centene Corporation* | 733,707 | 25,789,801 | ||||||||
Home furnishings—2.0% | ||||||||||
DTS, Inc.* | 603,717 | 16,958,411 | ||||||||
Universal Electronics, Inc.* | 746,914 | 13,885,131 | ||||||||
Internet—3.6% | ||||||||||
BroadSoft, Inc.* | 265,883 | 9,571,788 | ||||||||
Sapient Corporation | 1,793,454 | 22,167,091 | ||||||||
TIBCO Software, Inc.* | 801,124 | 23,144,472 | ||||||||
Investment companies—0.5% | ||||||||||
KKR Financial Holdings LLC | 966,880 | 8,073,448 | ||||||||
Machinery-diversified—0.9% | ||||||||||
Cognex Corporation | 399,470 | 13,538,038 | ||||||||
Metal fabricate/hardware—1.0% | ||||||||||
Northwest Pipe Company* | 245,077 | 6,536,204 | ||||||||
RTI International Metals, Inc.* | 329,000 | 8,682,310 | ||||||||
Mining—1.5% | ||||||||||
Titanium Metals Corporation | 1,362,068 | 22,814,639 | ||||||||
Miscellaneous manufacturer—1.0% | ||||||||||
Hexcel Corporation* | 613,645 | 15,163,168 | ||||||||
Oil & gas—3.2% | ||||||||||
Atwood Oceanics, Inc.* | 198,515 | 8,484,531 | ||||||||
Brigham Exploration Company* | 362,645 | 13,205,718 | ||||||||
Gulfport Energy Corporation* | 236,470 | 7,363,676 | ||||||||
Oasis Petroleum, Inc.* | 445,701 | 13,076,867 | ||||||||
Rosetta Resources, Inc.* | 145,265 | 6,441,050 | ||||||||
Oil & gas services—4.6% | ||||||||||
Lufkin Industries, Inc. | 770,947 | 45,555,258 | ||||||||
OYO Geospace Corporation* | 316,585 | 24,877,249 | ||||||||
Pharmaceuticals—5.8% | ||||||||||
BioMarin Pharmaceutical, Inc.* | 511,933 | 17,462,035 | ||||||||
Catalyst Health Solutions, Inc.* | 289,575 | 15,917,938 | ||||||||
Herbalife Ltd. | 531,344 | 33,134,612 | ||||||||
Impax Laboratories, Inc.* | 388,278 | 7,342,337 | ||||||||
Salix Pharmaceuticals Ltd.* | 457,520 | 15,672,348 | ||||||||
Real estate investment trusts—1.0% | ||||||||||
Redwood Trust, Inc. | 472,944 | 5,495,609 | ||||||||
Two Harbors Investment Corporation | 1,055,735 | 9,871,122 | ||||||||
Retail—11.8% | ||||||||||
BJ’s Restaurants, Inc.* | 659,625 | 34,913,951 | ||||||||
Cash America International, Inc. | 525,429 | 28,767,238 | ||||||||
Chico’s FAS, Inc. | 1,140,773 | 14,099,954 | ||||||||
Genesco, Inc.* | 784,533 | 46,240,375 | ||||||||
GNC Holdings, Inc., Class A* | 955,930 | 23,659,268 | ||||||||
Sally Beauty Holdings, Inc.* | 290,000 | 5,565,100 | ||||||||
Vitamin Shoppe, Inc.* | 755,066 | 28,473,539 | ||||||||
Semiconductors—2.7% | ||||||||||
Rovi Corporation* | 371,120 | 18,385,285 | ||||||||
Teradyne, Inc.* | 990,795 | 14,188,184 | ||||||||
Veeco Instruments, Inc.* | 345,520 | 9,221,929 |
Common stocks—95.5% | Shares | Value | ||||||||
Software—8.8% | ||||||||||
Allscripts Healthcare Solutions, Inc.* | 708,465 | $13,567,105 | ||||||||
ANSYS, Inc.* | 293,212 | 15,939,004 | ||||||||
Compuware Corporation* | 967,620 | 8,176,389 | ||||||||
Concur Technologies, Inc.* | 174,295 | 8,108,203 | ||||||||
Informatica Corporation* | 436,707 | 19,870,169 | ||||||||
MedAssets, Inc.* | 943,341 | 10,056,015 | ||||||||
Medidata Solutions, Inc.* | 778,938 | 14,005,305 | ||||||||
OPNET Technologies, Inc. | 293,745 | 12,848,406 | ||||||||
Qlik Technologies, Inc.* | 620,078 | 17,715,629 | ||||||||
Quality Systems, Inc. | 368,133 | 14,324,055 | ||||||||
Telecommunications—1.6% | ||||||||||
EZchip Semiconductor Ltd.* | 310,990 | 11,329,366 | ||||||||
Plantronics, Inc. | 415,261 | 13,873,870 | ||||||||
Transportation—1.4% | ||||||||||
Atlas Air Worldwide Holdings, Inc.* | 199,885 | 7,699,570 | ||||||||
Landstar System, Inc. | 303,022 | 13,523,872 | ||||||||
Total common stocks (cost $1,276,636,638) | 1,467,342,264 | |||||||||
Total investment portfolio (cost $1,276,636,638) 95.5% | 1,467,342,264 | |||||||||
Other assets in excess of liabilities 4.5% | 68,543,954 | |||||||||
Net assets 100.0% | $1,535,886,218 | |||||||||
* Non-income producing security |
Sector allocation (unaudited) | ||||
Sector | Percent of net assets | |||
Consumer, cyclical | 23.9% | |||
Consumer, non-cyclical | 22.9% | |||
Technology | 13.8% | |||
Industrial | 12.7% | |||
Energy | 8.8% | |||
Basic materials | 5.3% | |||
Communications | 5.1% | |||
Financial | 3.0% |
The accompanying notes are an integral part of the financial statements. | 33 |
Table of Contents
Statements of Assets and Liabilities
10.31.2011 |
Eagle Capital Appreciation Fund | Eagle Growth & Income Fund | Eagle International Equity Fund | Eagle Investment Grade Bond Fund | |||||||||||||
Assets | ||||||||||||||||
Investments, at value (a) | $398,185,054 | $221,236,884 | $47,696,685 | $110,781,760 | ||||||||||||
Cash | 147,945 | 11,561,170 | 2,099,790 | 2,841,831 | ||||||||||||
Foreign currency (identified cost $435,788) | — | — | 447,069 | — | ||||||||||||
Receivable for investments sold | 10,535,718 | — | 1,227,568 | — | ||||||||||||
Receivable for fund shares sold | 307,399 | 548,723 | 13,674 | 1,120,228 | ||||||||||||
Receivable for dividends and interest | 216,119 | 493,293 | 92,024 | 632,164 | ||||||||||||
Receivable for recoverable foreign withholding taxes | — | 122,828 | 62,854 | 3,893 | ||||||||||||
Prepaid expenses | 16,522 | 13,507 | 28,030 | 23,924 | ||||||||||||
Unrealized gain on forward foreign currency exchange contracts | — | — | 70,171 | — | ||||||||||||
Total assets | 409,408,757 | 233,976,405 | 51,737,865 | 115,403,800 | ||||||||||||
Liabilities | ||||||||||||||||
Payable for investments purchased | 2,017,476 | 4,429,635 | 1,765,659 | 247,931 | ||||||||||||
Payable for fund shares redeemed | 4,665,323 | 452,953 | 133,872 | 503,180 | ||||||||||||
Payable to the custodian | 8,432 | 7,060 | 23,504 | 2,785 | ||||||||||||
Accrued investment advisory fees | 202,892 | 95,941 | 34,738 | 28,546 | ||||||||||||
Accrued administrative fees | 48,980 | 27,184 | 6,112 | 14,141 | ||||||||||||
Accrued distribution fees | 117,617 | 92,051 | 26,133 | 56,814 | ||||||||||||
Accrued shareholder servicing fees | 67,642 | 19,508 | 5,179 | 3,581 | ||||||||||||
Accrued fund accounting fees | 26,658 | 19,438 | 13,837 | 20,073 | ||||||||||||
Accrued internal audit fees | 869 | 869 | 869 | 869 | ||||||||||||
Accrued trustees and officers compensation | 13,284 | 8,047 | 8,047 | 8,047 | ||||||||||||
Other accrued expenses | 65,837 | 43,547 | 24,177 | 25,570 | ||||||||||||
Unrealized loss on forward foreign currency exchange contracts | — | — | 304,371 | — | ||||||||||||
Total liabilities | 7,235,010 | 5,196,233 | 2,346,498 | 911,537 | ||||||||||||
Net assets | 402,173,747 | 228,780,172 | 49,391,367 | 114,492,263 | ||||||||||||
Net assets consists of | ||||||||||||||||
Paid-in capital | 353,934,009 | 217,385,523 | 127,301,963 | 110,818,376 | ||||||||||||
Undistributed net investment income (loss) | — | — | — | 13 | ||||||||||||
Accumulated net realized gain (loss) | (60,627,215 | ) | 12,114,278 | (82,186,319 | ) | 1,006,885 | ||||||||||
Net unrealized loss on forward foreign currency contracts | — | — | (234,200 | ) | — | |||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 108,866,953 | (719,629 | ) | 4,509,923 | 2,666,989 | |||||||||||
Net assets | 402,173,747 | 228,780,172 | 49,391,367 | 114,492,263 | ||||||||||||
Net assets, at market value | ||||||||||||||||
Class A | 293,058,798 | 133,825,617 | 23,125,089 | 58,101,412 | ||||||||||||
Class C | 66,828,827 | 79,959,603 | 25,809,539 | 53,167,421 | ||||||||||||
Class I | 17,922,436 | 14,058,928 | 450,036 | 3,168,390 | ||||||||||||
Class R-3 | 756,721 | 923,095 | 4,457 | 52,316 | ||||||||||||
Class R-5 | 23,606,965 | 10,330 | 2,246 | 2,724 | ||||||||||||
Class R-6 | N/A | 2,599 | N/A | N/A | ||||||||||||
Net asset value (“NAV”), offering and redemption price per share | ||||||||||||||||
Class A | $26.97 | $13.14 | $18.29 | $15.25 | ||||||||||||
Maximum offering price (b) | 28.31 | 13.80 | 19.20 | 15.84 | ||||||||||||
Class C | 23.36 | 12.74 | 16.41 | 15.23 | ||||||||||||
Class I | 27.55 | 13.13 | 18.42 | 15.27 | ||||||||||||
Class R-3 | 26.68 | 13.10 | 17.75 | 15.24 | ||||||||||||
Class R-5 | 27.50 | 13.13 | 18.24 | 15.22 | ||||||||||||
Class R-6 | N/A | 13.13 | N/A | N/A | ||||||||||||
Shares of beneficial interest outstanding | ||||||||||||||||
Class A | 10,866,333 | 10,185,610 | 1,264,266 | 3,810,267 | ||||||||||||
Class C | 2,860,957 | 6,274,855 | 1,572,800 | 3,491,277 | ||||||||||||
Class I | 650,457 | 1,070,697 | 24,433 | 207,441 | ||||||||||||
Class R-3 | 28,363 | 70,452 | 251 | 3,432 | ||||||||||||
Class R-5 | 858,509 | 787 | 123 | 179 | ||||||||||||
Class R-6 | N/A | 198 | N/A | N/A | ||||||||||||
(a) Identified cost | $289,318,101 | $221,958,633 | $43,198,346 | $108,114,771 |
(b) For all funds except the Eagle Investment Grade Bond Fund, the maximum offering price is computed as 100/95.25 of NAV. The maximum offering price for the Eagle Investment Grade Bond Fund is computed as 100/96.25 of NAV.
34 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Statements of Assets and Liabilities
10.31.2011 |
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 | ||||||||||||||
$21,033,742 | $380,333,523 | $974,378,978 | $76,308,963 | $1,467,342,264 | ||||||||||||||
1,789,678 | 1,742,537 | 1,467,875 | 2,893,889 | 25,643,164 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
— | 1,749,187 | 42,398,334 | 135,444 | — | ||||||||||||||
98,783 | 5,087,909 | 648,617 | 56,522 | 70,053,841 | ||||||||||||||
18,215 | 76,031 | 240,092 | 29,507 | 90,269 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
7,402 | 14,809 | 27,518 | 42,501 | 34,587 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
22,947,820 | 389,003,996 | 1,019,161,414 | 79,466,826 | 1,563,164,125 | ||||||||||||||
— | 1,965,207 | 33,804,779 | — | 23,570,201 | ||||||||||||||
22,707 | 478,560 | 3,062,718 | 137,576 | 2,484,537 | ||||||||||||||
2,994 | 6,605 | 26,818 | 2,824 | 14,491 | ||||||||||||||
11,252 | 181,953 | 466,406 | 38,083 | 679,688 | ||||||||||||||
2,606 | 42,394 | 111,899 | 7,080 | 139,838 | ||||||||||||||
8,672 | 103,953 | 281,788 | 7,505 | 200,205 | ||||||||||||||
1,831 | 28,449 | 110,981 | 8,044 | 97,284 | ||||||||||||||
14,641 | 20,059 | 35,794 | 15,089 | 35,722 | ||||||||||||||
869 | 869 | 869 | 869 | 869 | ||||||||||||||
8,047 | 8,047 | 8,047 | 8,047 | 8,047 | ||||||||||||||
90,951 | 33,077 | 98,373 | 30,993 | 47,025 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
164,570 | 2,869,173 | 38,008,472 | 256,110 | 27,277,907 | ||||||||||||||
22,783,250 | 386,134,823 | 981,152,942 | 79,210,716 | 1,535,886,218 | ||||||||||||||
64,604,312 | 333,138,706 | 986,351,293 | 46,772,511 | 1,365,439,845 | ||||||||||||||
354,047 | — | — | (30,823 | ) | — | |||||||||||||
(44,076,505 | ) | (3,819,656 | ) | (79,503,199 | ) | 10,359,885 | (20,259,253 | ) | ||||||||||
— | — | — | — | — | ||||||||||||||
| 1,901,396 | | 56,815,773 | 74,304,848 | 22,109,143 | 190,705,626 | ||||||||||||
22,783,250 | 386,134,823 | 981,152,942 | 79,210,716 | 1,535,886,218 | ||||||||||||||
9,601,332 | 230,913,676 | 543,842,813 | 11,926,547 | 497,061,020 | ||||||||||||||
8,116,444 | 72,316,303 | 204,124,198 | 6,380,312 | 108,061,652 | ||||||||||||||
5,037,778 | 59,717,917 | 163,252,678 | 60,886,079 | 678,613,474 | ||||||||||||||
2,698 | 3,772,886 | 4,653,240 | 12,081 | 48,448,075 | ||||||||||||||
24,998 | 19,411,457 | 65,277,494 | 3,087 | 138,227,135 | ||||||||||||||
N/A | 2,584 | 2,519 | 2,610 | 65,474,862 | ||||||||||||||
$13.82 | $29.96 | $25.07 | $20.05 | $38.93 | ||||||||||||||
14.51 | 31.45 | 26.32 | 21.05 | 40.87 | ||||||||||||||
13.51 | 26.24 | 21.86 | 19.52 | 32.78 | ||||||||||||||
13.78 | 30.66 | 25.58 | 20.31 | 39.65 | ||||||||||||||
13.77 | 29.73 | 24.80 | 19.96 | 38.58 | ||||||||||||||
14.14 | 30.64 | 25.60 | 20.30 | 39.74 | ||||||||||||||
N/A | 30.76 | 25.70 | 20.30 | 39.76 | ||||||||||||||
694,937 | 7,707,741 | 21,695,372 | 594,961 | 12,769,029 | ||||||||||||||
600,703 | 2,756,092 | 9,337,673 | 326,778 | 3,296,845 | ||||||||||||||
365,553 | 1,947,961 | 6,383,095 | 2,998,565 | 17,116,669 | ||||||||||||||
196 | 126,917 | 187,626 | 605 | 1,255,625 | ||||||||||||||
1,768 | 633,536 | 2,550,084 | 152 | 3,478,035 | ||||||||||||||
N/A | 84 | 98 | 129 | 1,646,575 | ||||||||||||||
$19,132,346 | $323,517,750 | $900,074,130 | $54,199,820 | $1,276,636,638 |
The accompanying notes are an integral part of the financial statements. | 35 |
Table of Contents
11.1.2010 to 10.31.2011 |
Eagle Capital Appreciation Fund | Eagle Growth & Income Fund | Eagle International Equity Fund | Eagle Investment Grade Bond Fund | |||||||||||||
Investment Income | ||||||||||||||||
Dividends (a) | $7,273,989 | $7,544,029 | $1,219,436 | $— | ||||||||||||
Interest | 528 | 349 | 237 | 2,306,372 | ||||||||||||
Total Income | 7,274,517 | 7,544,378 | 1,219,673 | 2,306,372 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 3,663,411 | 1,200,155 | 584,966 | 315,151 | ||||||||||||
Administrative fees | ||||||||||||||||
Class A | 741,017 | 209,019 | 47,388 | 77,363 | ||||||||||||
Class C | 116,793 | 115,322 | 55,334 | 75,520 | ||||||||||||
Class I | 13,198 | 16,495 | 333 | 3,074 | ||||||||||||
Class R-3 | 1,076 | 963 | 5 | 78 | ||||||||||||
Class R-5 | 24,780 | 3 | 3 | 3 | ||||||||||||
Class R-6 * | N/A | 1 | N/A | N/A | ||||||||||||
Distribution and service fees | ||||||||||||||||
Class A | 1,235,022 | 348,363 | 78,979 | 128,938 | ||||||||||||
Class C | 778,617 | 768,813 | 368,890 | 503,465 | ||||||||||||
Class R-3 | 3,585 | 3,209 | 15 | 260 | ||||||||||||
Transfer agent and shareholder servicing fees | ||||||||||||||||
Class A | 672,116 | 158,475 | 20,882 | 21,300 | ||||||||||||
Class C | 63,137 | 63,281 | 36,494 | 24,368 | ||||||||||||
Class I | 13,039 | 12,725 | 198 | 1,525 | ||||||||||||
Class R-3 | 1,188 | 974 | 1 | 75 | ||||||||||||
Class R-5 | 34,574 | 1 | 1 | 140 | ||||||||||||
Class R-6 * | N/A | — | N/A | N/A | ||||||||||||
Fund accounting fees | 45,797 | 17,504 | 5,162 | 7,880 | ||||||||||||
Professional fees | 93,740 | 101,967 | 98,855 | 92,543 | ||||||||||||
State qualification expenses | 141,016 | 132,171 | 89,228 | 88,202 | ||||||||||||
Offering costs | — | — | — | 26,827 | ||||||||||||
Reports to shareholders | 134,767 | 48,638 | 24,878 | 9,156 | ||||||||||||
Trustees and officers compensation | 46,203 | 45,922 | 46,013 | 50,553 | ||||||||||||
Custodian fees | 34,494 | 41,908 | 128,871 | 11,971 | ||||||||||||
Internal audit fees | 8,984 | 8,984 | 8,984 | 8,984 | ||||||||||||
Other | 38,485 | 28,129 | 21,881 | 14,446 | ||||||||||||
Total expenses before adjustments | 7,905,039 | 3,323,022 | 1,617,361 | 1,461,822 | ||||||||||||
Fees and expenses waived | — | (1 | ) | (218,146 | ) | (172,145 | ) | |||||||||
Recovered fees previously waived by Manager | — | 2,372 | 29,668 | — | ||||||||||||
Expense offsets | (2,102 | ) | (1,557 | ) | (229 | ) | (532 | ) | ||||||||
Total expenses after adjustments | 7,902,937 | 3,323,836 | 1,428,654 | 1,289,145 | ||||||||||||
Net investment income (loss) | (628,420 | ) | 4,220,542 | (208,981 | ) | 1,017,227 | ||||||||||
Realized and unrealized gain (loss) on investments | ||||||||||||||||
Net realized gain on investments | 7,792,547 | 22,945,083 | 3,789,391 | 1,015,364 | ||||||||||||
Net realized gain (loss) on foreign currency transactions (b) | — | 21,796 | (343,848 | ) | — | |||||||||||
Net change in unrealized depreciation on forward foreign currency exchange contracts | — | — | (77,658 | ) | — | |||||||||||
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | (2,353,826 | ) | (18,729,263 | ) | (10,747,926 | ) | 328,136 | |||||||||
Net gain (loss) on investments | 5,438,721 | 4,237,616 | (7,380,041 | ) | 1,343,500 | |||||||||||
Net increase (decrease) in net assets resulting from operations | 4,810,301 | 8,458,158 | (7,589,022 | ) | 2,360,727 | |||||||||||
(a) Net of foreign withholding taxes | $— | $166,185 | $112,327 | $— | ||||||||||||
(b) Includes Brazilian IOF tax of | — | — | 6,930 | — | ||||||||||||
* Class R-6 commenced operations on August 15, 2011. |
36 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Statements of Operations
11.1.2010 to 10.31.2011 |
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 | ||||||||||||||
$1,814,313 | $2,005,865 | $13,314,202 | $914,069 | $4,503,398 | ||||||||||||||
435 | 385 | 1,689 | 153 | 813 | ||||||||||||||
1,814,748 | 2,006,250 | 13,315,891 | 914,222 | 4,504,211 | ||||||||||||||
627,986 | 1,923,477 | 7,215,496 | 475,668 | 5,633,934 | ||||||||||||||
16,156 | 302,840 | 1,046,820 | 17,611 | 581,707 | ||||||||||||||
13,649 | 106,110 | 361,096 | 9,102 | 145,781 | ||||||||||||||
84,766 | 40,219 | 277,333 | 61,457 | 387,103 | ||||||||||||||
4 | 4,090 | 6,684 | 12 | 21,744 | ||||||||||||||
25 | 4,999 | 73,422 | 3 | 90,953 | ||||||||||||||
N/A | 1 | — | 1 | 2,734 | ||||||||||||||
26,926 | 504,731 | 1,744,691 | 29,352 | 969,506 | ||||||||||||||
90,993 | 707,395 | 2,407,301 | 60,682 | 971,871 | ||||||||||||||
14 | 13,634 | 22,279 | 40 | 72,480 | ||||||||||||||
8,059 | 223,954 | 820,576 | 9,132 | 465,136 | ||||||||||||||
8,828 | 51,945 | 196,511 | 5,781 | 73,831 | ||||||||||||||
76,834 | 25,786 | 218,710 | 77,436 | 330,343 | ||||||||||||||
30 | 4,151 | 6,987 | 4 | 10,651 | ||||||||||||||
36 | 3,701 | 94,714 | 1 | 99,924 | ||||||||||||||
N/A | — | — | — | — | ||||||||||||||
7,851 | 24,046 | 97,046 | 5,946 | 73,526 | ||||||||||||||
69,251 | 71,176 | 70,205 | 65,988 | 71,230 | ||||||||||||||
86,043 | 131,589 | 151,112 | 110,643 | 216,626 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
35,167 | 46,136 | 255,521 | 19,810 | 146,989 | ||||||||||||||
45,999 | 45,999 | 45,998 | 45,999 | 45,999 | ||||||||||||||
12,863 | 25,529 | 93,463 | 11,608 | 51,170 | ||||||||||||||
8,984 | 8,984 | 8,984 | 8,984 | 8,984 | ||||||||||||||
19,958 | 23,298 | 74,250 | 17,393 | 35,926 | ||||||||||||||
1,240,422 | 4,293,790 | 15,289,199 | 1,032,653 | 10,508,148 | ||||||||||||||
(81,604 | ) | — | — | (164,745 | ) | (277 | ) | |||||||||||
273 | 2,689 | — | 19,551 | — | ||||||||||||||
(2,260 | ) | (2,444 | ) | (2,398 | ) | (540 | ) | (11,869 | ) | |||||||||
1,156,831 | 4,294,035 | 15,286,801 | 886,919 | 10,496,002 | ||||||||||||||
657,917 | (2,287,785 | ) | (1,970,910 | ) | 27,303 | (5,991,791 | ) | |||||||||||
20,892,991 | 3,635,942 | 119,675,118 | 10,473,540 | 32,335,102 | ||||||||||||||
— | — | — | — | — | ||||||||||||||
| — | | — | — | — | — | ||||||||||||
| (9,646,576 | ) | 3,132,755 | (109,656,621 | ) | (1,993,868 | ) | 44,883,433 | ||||||||||
11,246,415 | 6,768,697 | 10,018,497 | 8,479,672 | 77,218,535 | ||||||||||||||
| 11,904,332 | | 4,480,912 | 8,047,587 | 8,506,975 | 71,226,744 | ||||||||||||
$— | $5,303 | $10,161 | $2,739 | $— | ||||||||||||||
— | — | — | — | — |
The accompanying notes are an integral part of the financial statements. | 37 |
Table of Contents
Statements of Changes in Net Assets
Eagle Capital Appreciation Fund | Eagle Growth & Income Fund | Eagle International Equity Fund | ||||||||||||||||||||||
11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | 11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | 11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | |||||||||||||||||||
Net assets, beginning of period | $586,465,458 | $486,558,402 | $208,708,199 | $141,502,238 | $84,065,854 | $117,155,129 | ||||||||||||||||||
Increase (decrease) in net assets from operations | ||||||||||||||||||||||||
Net investment income (loss) | (628,420 | ) | (1,445,633 | ) | 4,220,542 | 2,499,128 | (208,981 | ) | 35,268 | |||||||||||||||
Net realized gain (loss) on investments | 7,792,547 | 39,004,380 | 22,945,083 | 9,269,475 | 3,789,391 | 6,638,065 | ||||||||||||||||||
Net realized gain (loss) on foreign currency transactions (b) | — | — | 21,796 | 22,462 | (343,848 | ) | 5,037,812 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on forward foreign currency exchange contracts | — | — | — | — | (77,658 | ) | 109,173 | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | (2,353,826 | ) | 39,015,018 | (18,729,263 | ) | 8,842,112 | (10,747,926 | ) | (3,461,843 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | 4,810,301 | 76,573,765 | 8,458,158 | 20,633,177 | (7,589,022 | ) | 8,358,475 | |||||||||||||||||
Distributions to shareholders from | ||||||||||||||||||||||||
Net investment income | — | — | (4,261,143 | ) | (2,609,394 | ) | (1,589,549 | ) | — | |||||||||||||||
Net realized gains | — | — | — | — | — | — | ||||||||||||||||||
Net distributions to shareholders | — | — | (4,261,143 | ) | (2,609,394 | ) | (1,589,549 | ) | — | |||||||||||||||
Fund share transactions | ||||||||||||||||||||||||
Proceeds from shares sold-Class A | 150,556,609 | 149,725,649 | 45,742,142 | 52,191,244 | 3,819,721 | 3,916,862 | ||||||||||||||||||
Issued as reinvestment of distributions-Class A | — | — | 2,386,818 | 1,603,407 | 785,708 | — | ||||||||||||||||||
Cost of shares redeemed-Class A | (328,524,662 | ) | (106,706,998 | ) | (44,876,604 | ) | (27,342,629 | ) | (14,499,060 | ) | (22,989,844 | ) | ||||||||||||
Proceeds from shares sold-Class C | 2,784,091 | 4,868,915 | 20,606,839 | 24,447,566 | 1,070,069 | 1,816,635 | ||||||||||||||||||
Issued as reinvestment of distributions-Class C | — | — | 880,356 | 535,148 | 693,884 | — | ||||||||||||||||||
Cost of shares redeemed-Class C | (19,660,905 | ) | (19,600,206 | ) | (14,756,084 | ) | (8,492,918 | ) | (17,467,684 | ) | (24,458,321 | ) | ||||||||||||
Proceeds from shares sold-Class I | 14,440,652 | 8,850,238 | 23,318,736 | 8,066,516 | 417,990 | 270,089 | ||||||||||||||||||
Issued as reinvestment of distributions-Class I | — | — | 165,312 | 30,336 | 8,749 | — | ||||||||||||||||||
Cost of shares redeemed-Class I | (7,966,827 | ) | (13,574,129 | ) | (18,137,904 | ) | (1,945,750 | ) | (327,825 | ) | (8,139 | ) | ||||||||||||
Proceeds from shares sold-Class R-3 | 212,628 | 156,530 | 735,400 | 86,232 | 2,394 | 2,484 | ||||||||||||||||||
Issued as reinvestment of distributions-Class R-3 | — | — | 12,186 | 4,819 | 64 | — | ||||||||||||||||||
Cost of shares redeemed-Class R-3 | (143,500 | ) | (293,981 | ) | (212,037 | ) | (4,332 | ) | — | — | ||||||||||||||
Proceeds from shares sold-Class R-5 | 4,165,343 | 4,528,599 | 7,176 | 2,500 | — | 2,484 | ||||||||||||||||||
Issued as reinvestment of distributions-Class R-5 | — | — | 107 | 39 | 74 | — | ||||||||||||||||||
Cost of shares redeemed-Class R-5 | (4,965,441 | ) | (4,621,326 | ) | — | — | — | — | ||||||||||||||||
Proceeds from shares sold-Class R-6 (d) | N/A | N/A | 2,500 | — | N/A | N/A | ||||||||||||||||||
Issued as reinvestment of distributions-Class R-6 (d) | N/A | N/A | 15 | — | N/A | N/A | ||||||||||||||||||
Cost of shares redeemed-Class R-6 (d) | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||
Net increase (decrease) from fund share transactions | (189,102,012 | ) | 23,333,291 | 15,874,958 | 49,182,178 | (25,495,916 | ) | (41,447,750 | ) | |||||||||||||||
Increase (decrease) in net assets | (184,291,711 | ) | 99,907,056 | 20,071,973 | 67,205,961 | (34,674,487 | ) | (33,089,275 | ) | |||||||||||||||
Net assets, end of period (a) | 402,173,747 | 586,465,458 | 228,780,172 | 208,708,199 | 49,391,367 | 84,065,854 | ||||||||||||||||||
(a) Includes undistributed net investment income (accumulated net investment loss) of | $— | $— | $— | $128,562 | $— | $838,578 | ||||||||||||||||||
(b) Includes Brazilian IOF tax of | $— | $— | $— | $95,841 | $6,930 | $47,204 | ||||||||||||||||||
Shares issued and redeemed | ||||||||||||||||||||||||
Shares sold-Class A | 5,378,967 | 6,000,458 | 3,427,752 | 4,303,364 | 182,577 | 196,275 | ||||||||||||||||||
Issued as reinvestment of distributions-Class A | — | — | 178,141 | 129,429 | 36,528 | — | ||||||||||||||||||
Shares redeemed-Class A | (12,406,299 | ) | (4,304,324 | ) | (3,405,024 | ) | (2,253,952 | ) | (689,039 | ) | (1,148,100 | ) | ||||||||||||
Shares sold-Class C | 114,292 | 223,275 | 1,600,885 | 2,065,409 | 56,576 | 99,989 | ||||||||||||||||||
Issued as reinvestment of distributions-Class C | — | — | 67,808 | 44,494 | 35,712 | — | ||||||||||||||||||
Shares redeemed-Class C | (813,314 | ) | (906,784 | ) | (1,139,910 | ) | (725,189 | ) | (917,611 | ) | (1,355,217 | ) | ||||||||||||
Shares sold-Class I | 517,496 | 349,516 | 1,723,647 | 662,146 | 19,188 | 12,771 | ||||||||||||||||||
Issued as reinvestment of distributions-Class I | — | — | 12,334 | 2,436 | 405 | — | ||||||||||||||||||
Shares redeemed-Class I | (287,327 | ) | (544,288 | ) | (1,333,444 | ) | (159,433 | ) | (15,013 | ) | (398 | ) | ||||||||||||
Shares sold-Class R-3 | 7,442 | 6,347 | 54,207 | 7,095 | 128 | 120 | ||||||||||||||||||
Issued as reinvestment of distributions-Class R-3 | — | — | 917 | 389 | 3 | — | ||||||||||||||||||
Shares redeemed-Class R-3 | (5,041 | ) | (11,874 | ) | (15,596 | ) | (364 | ) | — | — | ||||||||||||||
Shares sold-Class R-5 | 147,001 | 180,019 | 570 | 206 | — | 120 | ||||||||||||||||||
Issued as reinvestment of distributions-Class R-5 | — | — | 8 | 3 | 3 | — | ||||||||||||||||||
Shares redeemed-Class R-5 | (174,177 | ) | (182,893 | ) | — | — | — | — | ||||||||||||||||
Shares sold-Class R-6 (d) | N/A | N/A | 197 | — | N/A | N/A | ||||||||||||||||||
Issued as reinvestment of distributions-Class R-6 (d) | N/A | N/A | 1 | — | N/A | N/A | ||||||||||||||||||
Shares redeemed-Class R-6 (d) | N/A | N/A | — | — | N/A | N/A | ||||||||||||||||||
Shares issued and redeemed | (7,520,960 | ) | 809,452 | 1,172,493 | 4,076,033 | (1,290,543 | ) | (2,194,440 | ) |
(c) For the period March 1, 2010 (commencement of operations) to October 31, 2010.
(d) Class R-6 commenced operations on August 15, 2011.
38 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
Statements of Changes in Net Assets
Eagle Investment Grade Bond 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 | |||||||||||||||||||||||||||||||||||||||||
11/1/10 to 10/31/11 | 3/1/10 to 10/31/10 (c) | 11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | 11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | 11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | 11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | 11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | |||||||||||||||||||||||||||||||||||
$101,706,495 | $ — | $137,049,995 | $124,850,857 | $214,455,420 | $146,725,344 | $1,391,084,078 | $1,360,595,478 | $70,856,563 | $57,833,435 | $485,861,025 | $312,128,302 | |||||||||||||||||||||||||||||||||||
1,017,227 | 451,278 | 657,917 | 700,700 | (2,287,785 | ) | (1,001,675 | ) | (1,970,910 | ) | (4,836,933 | ) | 27,303 | (33,045 | ) | (5,991,791 | ) | (2,364,043 | ) | ||||||||||||||||||||||||||||
1,015,364 | 583,815 | 20,892,991 | (687,281 | ) | 3,635,942 | 20,612,479 | 119,675,118 | 188,681,537 | 10,473,540 | 6,302,357 | 32,335,102 | 27,149,881 | ||||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| — | | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| 328,136 | | 2,338,853 | (9,646,576 | ) | 12,221,695 | 3,132,755 | 28,428,715 | (109,656,621 | ) | 67,597,572 | (1,993,868 | ) | 7,159,467 | 44,883,433 | 89,359,536 | ||||||||||||||||||||||||||||||
2,360,727 | 3,373,946 | 11,904,332 | 12,235,114 | 4,480,912 | 48,039,519 | 8,047,587 | 251,442,176 | 8,506,975 | 13,428,779 | 71,226,744 | 114,145,374 | |||||||||||||||||||||||||||||||||||
(1,220,091 | ) | (390,219 | ) | (816,734 | ) | (965,747 | ) | — | — | — | — | (38,788 | ) | (37,833 | ) | — | — | |||||||||||||||||||||||||||||
(539,279 | ) | — | — | — | — | — | — | — | (6,284,232 | ) | (2,027,828 | ) | — | — | ||||||||||||||||||||||||||||||||
(1,759,370 | ) | (390,219 | ) | (816,734 | ) | (965,747 | ) | — | — | — | — | (6,323,020 | ) | (2,065,661 | ) | — | — | |||||||||||||||||||||||||||||
31,511,028 | 49,701,658 | 2,386,113 | 1,027,312 | 150,823,483 | 42,506,699 | 107,670,184 | 128,278,437 | 3,185,520 | 3,560,591 | 346,225,993 | 84,639,975 | |||||||||||||||||||||||||||||||||||
804,329 | 197,353 | 19,110 | 47,259 | — | — | — | — | 782,925 | 189,893 | — | — | |||||||||||||||||||||||||||||||||||
(22,440,534 | ) | (3,621,289 | ) | (3,938,582 | ) | (2,705,543 | ) | (63,830,502 | ) | (29,416,271 | ) | (304,331,261 | ) | (345,423,076 | ) | (2,426,615 | ) | (591,807 | ) | (149,599,533 | ) | (87,144,327 | ) | |||||||||||||||||||||||
18,794,229 | 49,411,156 | 838,663 | 905,568 | 22,376,241 | 7,613,282 | 19,152,718 | 17,601,208 | 1,552,280 | 1,500,430 | 40,254,987 | 6,678,857 | |||||||||||||||||||||||||||||||||||
561,201 | 94,795 | — | — | — | — | — | — | 456,887 | 122,120 | — | — | |||||||||||||||||||||||||||||||||||
(16,305,813 | ) | (971,481 | ) | (1,889,936 | ) | (2,152,862 | ) | (10,767,809 | ) | (8,856,506 | ) | (51,325,989 | ) | (51,757,572 | ) | (684,200 | ) | (539,109 | ) | (14,441,059 | ) | (13,128,650 | ) | |||||||||||||||||||||||
1,200,033 | 4,079,421 | 15,758,582 | 22,536,089 | 63,324,968 | 8,056,660 | 121,137,093 | 145,806,783 | 13,336,578 | 9,514,382 | 719,123,336 | 68,637,014 | |||||||||||||||||||||||||||||||||||
49,657 | 8,584 | 760,061 | 876,556 | — | — | — | — | 4,808,072 | 1,689,028 | — | — | |||||||||||||||||||||||||||||||||||
(1,987,205 | ) | (234,297 | ) | (139,289,837 | ) | (19,609,117 | ) | (16,538,707 | ) | (1,104,343 | ) | (305,680,058 | ) | (115,530,578 | ) | (14,854,678 | ) | (13,790,518 | ) | (152,146,322 | ) | (6,871,192 | ) | |||||||||||||||||||||||
5,889 | 54,273 | — | 2,500 | 3,353,309 | 1,142,226 | 3,624,843 | 2,091,376 | 13,335 | 2,500 | 48,666,548 | 603,283 | |||||||||||||||||||||||||||||||||||
937 | 73 | 1 | — | — | — | — | — | 246 | — | — | — | |||||||||||||||||||||||||||||||||||
(9,400 | ) | (2 | ) | — | — | (1,071,987 | ) | (395,933 | ) | (2,325,476 | ) | (1,619,667 | ) | (2,900 | ) | — | (2,704,567 | ) | (875,308 | ) | ||||||||||||||||||||||||||
— | 2,500 | 1,473 | 1,943 | 22,041,691 | 146,459 | 17,471,503 | 12,675,639 | — | 2,500 | 102,641,689 | 13,651,306 | |||||||||||||||||||||||||||||||||||
60 | 24 | 149 | 161 | — | — | — | — | 248 | — | — | — | |||||||||||||||||||||||||||||||||||
— | — | (140 | ) | (95 | ) | (2,514,696 | ) | (1,716 | ) | (23,374,780 | ) | (13,076,126 | ) | — | — | (21,268,307 | ) | (6,603,609 | ) | |||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | 2,500 | — | 2,500 | — | 2,500 | — | 62,511,274 | — | |||||||||||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | — | — | — | — | — | — | (465,590 | ) | — | ||||||||||||||||||||||||||||||||||
12,184,411 | 98,722,768 | (125,354,343 | ) | 929,771 | 167,198,491 | 19,690,557 | (417,978,723 | ) | (220,953,576 | ) | 6,170,198 | 1,660,010 | 978,798,449 | 59,587,349 | ||||||||||||||||||||||||||||||||
12,785,768 | 101,706,495 | (114,266,745 | ) | 12,199,138 | 171,679,403 | 67,730,076 | (409,931,136 | ) | 30,488,600 | 8,354,153 | 13,023,128 | 1,050,025,193 | 173,732,723 | |||||||||||||||||||||||||||||||||
114,492,263 | 101,706,495 | 22,783,250 | 137,049,995 | 386,134,823 | 214,455,420 | 981,152,942 | 1,391,084,078 | 79,210,716 | 70,856,563 | 1,535,886,218 | 485,861,025 | |||||||||||||||||||||||||||||||||||
| $13 | | $202,877 | $354,047 | $526,041 | $ — | $ — | $ — | $(208,006 | ) | $(30,823 | ) | $(39,979 | ) | $ — | $17,352 | ||||||||||||||||||||||||||||||
$ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | $ — | |||||||||||||||||||||||||||||||||||
2,104,935 | 3,386,111 | 164,571 | 80,135 | 4,821,472 | 1,703,950 | 3,943,685 | 5,564,894 | 155,355 | 194,539 | 8,777,461 | 2,853,465 | |||||||||||||||||||||||||||||||||||
54,376 | 13,300 | 1,386 | 3,799 | — | — | — | — | 40,109 | 11,021 | — | — | |||||||||||||||||||||||||||||||||||
(1,505,442 | ) | (243,013 | ) | (276,791 | ) | (214,639 | ) | (2,098,955 | ) | (1,206,055 | ) | (11,262,612 | ) | (15,056,052 | ) | (115,729 | ) | (32,376 | ) | (3,867,079 | ) | (2,982,830 | ) | |||||||||||||||||||||||
1,253,087 | 3,356,355 | 60,051 | 71,178 | 816,199 | 342,670 | 800,211 | 864,380 | 77,022 | 82,648 | 1,207,645 | 264,656 | |||||||||||||||||||||||||||||||||||
38,159 | 6,389 | — | — | — | — | — | — | 23,833 | 7,154 | — | — | |||||||||||||||||||||||||||||||||||
(1,097,800 | ) | (64,913 | ) | (138,271 | ) | (171,619 | ) | (408,349 | ) | (403,429 | ) | (2,213,347 | ) | (2,546,052 | ) | (34,144 | ) | (29,832 | ) | (442,329 | ) | (527,246 | ) | |||||||||||||||||||||||
80,301 | 272,818 | 1,096,730 | 1,774,690 | 1,974,435 | 318,997 | 4,492,971 | 6,242,343 | 658,055 | 522,393 | 18,274,114 | 2,259,675 | |||||||||||||||||||||||||||||||||||
3,355 | 572 | 55,277 | 70,690 | — | — | — | — | 244,065 | 97,688 | — | — | |||||||||||||||||||||||||||||||||||
(134,115 | ) | (15,490 | ) | (9,771,486 | ) | (1,541,984 | ) | (557,478 | ) | (43,583 | ) | (11,300,305 | ) | (4,929,633 | ) | (717,378 | ) | (753,119 | ) | (3,966,758 | ) | (224,129 | ) | |||||||||||||||||||||||
397 | 3,608 | — | 196 | 114,580 | 45,180 | 132,178 | 90,539 | 606 | 140 | 1,270,937 | 20,780 | |||||||||||||||||||||||||||||||||||
64 | 5 | — | — | — | — | — | — | 13 | — | — | — | |||||||||||||||||||||||||||||||||||
(642 | ) | — | — | — | (35,748 | ) | (16,044 | ) | (87,353 | ) | (70,503 | ) | (154 | ) | — | (71,861 | ) | (31,062 | ) | |||||||||||||||||||||||||||
— | 173 | 98 | 148 | 713,159 | 5,738 | 623,069 | 533,966 | — | 140 | 2,585,750 | 457,000 | |||||||||||||||||||||||||||||||||||
4 | 2 | 11 | 13 | — | — | — | — | 12 | — | — | — | |||||||||||||||||||||||||||||||||||
— | — | (10 | ) | (7 | ) | (85,294 | ) | (67 | ) | (847,671 | ) | (553,223 | ) | — | — | (539,159 | ) | (220,826 | ) | |||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | 84 | — | 98 | — | 129 | — | 1,658,855 | — | |||||||||||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
N/A | N/A | N/A | N/A | — | — | — | — | — | — | (12,280 | ) | — | ||||||||||||||||||||||||||||||||||
796,679 | 6,715,917 | (8,808,434 | ) | 72,600 | 5,254,105 | 747,357 | (15,719,076 | ) | (9,859,341 | ) | 331,794 | 100,396 | 24,875,296 | 1,869,483 |
The accompanying notes are an integral part of the financial statements. | 39 |
Table of Contents
Fiscal periods | From investment operations | Dividends & distributions | Ratios to daily average net assets (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning net asset value | Income (loss) | Realized & unrealized gain (loss) | Total | From investment income | From realized gains | Total | Ending net asset value | With expenses waived/ recovered | Without expenses waived/ recovered | Net income (loss) | Portfolio turnover rate (%) | Total return (%) (a) | Ending net assets (millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eagle Capital Appreciation Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | $26.24 | $(0.01 | ) | $0.74 | $0.73 | $— | $— | $— | $26.97 | 1.22 | 1.22 | (0.03 | ) | 37 | 2.78 | $293 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 22.65 | (0.04 | ) | 3.63 | 3.59 | — | — | — | 26.24 | 1.27 | 1.27 | (0.18 | ) | 45 | 15.85 | 469 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.58 | (0.06 | ) | 4.13 | 4.07 | — | — | — | 22.65 | 1.32 | 1.32 | (0.31 | ) | 54 | 21.91 | 367 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 22.88 | (0.18 | ) | 0.66 | 0.48 | — | — | — | 23.36 | 1.92 | 1.92 | (0.74 | ) | 37 | 2.10 | 67 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 19.90 | (0.19 | ) | 3.17 | 2.98 | — | — | — | 22.88 | 1.99 | 1.99 | (0.91 | ) | 45 | 14.97 | 81 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 16.45 | (0.18 | ) | 3.63 | 3.45 | — | — | — | 19.90 | 2.08 | 2.08 | (1.07 | ) | 54 | 20.97 | 84 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 26.72 | 0.08 | 0.75 | 0.83 | — | — | — | 27.55 | 0.90 | 0.90 | 0.28 | 37 | 3.11 | 18 | |||||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 22.98 | 0.04 | 3.70 | 3.74 | — | — | — | 26.72 | 0.91 | 0.91 | 0.17 | 45 | 16.28 | 11 | |||||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.78 | 0.01 | 4.19 | 4.20 | — | — | — | 22.98 | 0.94 | 0.94 | 0.07 | 54 | 22.36 | 14 | |||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 26.03 | (0.09 | ) | 0.74 | 0.65 | — | — | — | 26.68 | 1.51 | 1.51 | (0.33 | ) | 37 | 2.50 | 1 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 22.52 | (0.10 | ) | 3.61 | 3.51 | — | — | — | 26.03 | 1.49 | 1.49 | (0.41 | ) | 45 | 15.59 | 1 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.51 | (0.10 | ) | 4.11 | 4.01 | — | — | — | 22.52 | 1.49 | 1.49 | (0.51 | ) | 54 | 21.66 | 1 | |||||||||||||||||||||||||||||||||||||||||||
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 | (d) | 7.17 | (d) | (1.26 | )(d) | 62 | 8.02 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||
Class R-5* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 26.67 | 0.07 | 0.76 | 0.83 | — | — | — | 27.50 | 0.93 | 0.93 | 0.25 | 37 | 3.11 | 24 | |||||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 22.94 | 0.06 | 3.67 | 3.73 | — | — | — | 26.67 | 0.87 | 0.87 | 0.22 | 45 | 16.26 | 24 | |||||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.73 | 0.02 | 4.19 | 4.21 | — | — | — | 22.94 | 0.87 | 0.87 | 0.12 | 54 | 22.48 | 20 | |||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||
Eagle Growth & Income Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 12.83 | 0.27 | 0.30 | 0.57 | (0.26 | ) | — | (0.26 | ) | 13.14 | 1.21 | 1.21 | 2.02 | 123 | (c) | 4.46 | 134 | ||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 11.57 | 0.20 | 1.26 | 1.46 | (0.20 | ) | — | (0.20 | ) | 12.83 | 1.40 | 1.30 | 1.61 | 50 | 12.65 | 128 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 9.71 | 0.31 | 1.86 | 2.17 | (0.31 | ) | — | (0.31 | ) | 11.57 | 1.39 | 1.55 | 3.12 | 57 | 22.88 | 90 | |||||||||||||||||||||||||||||||||||||||||||
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 | 64 | (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 | |||||||||||||||||||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 12.46 | 0.17 | 0.29 | 0.46 | (0.18 | ) | — | (0.18 | ) | 12.74 | 1.93 | 1.93 | 1.30 | 123 | (c) | 3.68 | 80 | ||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 11.24 | 0.11 | 1.23 | 1.34 | (0.12 | ) | — | (0.12 | ) | 12.46 | 2.12 | 2.05 | 0.89 | 50 | 11.95 | 72 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 9.45 | 0.23 | 1.80 | 2.03 | (0.24 | ) | — | (0.24 | ) | 11.24 | 2.19 | 2.31 | 2.35 | 57 | 21.89 | 49 | |||||||||||||||||||||||||||||||||||||||||||
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 | 64 | (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 | |||||||||||||||||||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 12.82 | 0.32 | 0.29 | 0.61 | (0.30 | ) | — | (0.30 | ) | 13.13 | 0.88 | 0.87 | 2.39 | 123 | (c) | 4.77 | 14 | ||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 11.56 | 0.29 | 1.22 | 1.51 | (0.25 | ) | — | (0.25 | ) | 12.82 | 0.95 | 0.97 | 2.01 | 50 | 13.15 | 9 | |||||||||||||||||||||||||||||||||||||||||||
03/18/09 | 10/31/09 | 8.43 | 0.20 | 3.20 | 3.40 | (0.27 | ) | — | (0.27 | ) | 11.56 | 0.95 | (d) | 1.12 | (d) | 3.08 | (d) | 57 | 40.72 | (e) | 2 | |||||||||||||||||||||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 12.81 | 0.23 | 0.30 | 0.53 | (0.24 | ) | — | (0.24 | ) | 13.10 | 1.51 | 1.51 | 1.71 | 123 | (c) | 4.14 | 1 | ||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 11.55 | 0.18 | 1.26 | 1.44 | (0.18 | ) | — | (0.18 | ) | 12.81 | 1.54 | 1.54 | 1.46 | 50 | 12.54 | 0 | |||||||||||||||||||||||||||||||||||||||||||
09/30/09 | 10/31/09 | 11.84 | 0.01 | (0.22 | ) | (0.21 | ) | (0.08 | ) | — | (0.08 | ) | 11.55 | 1.65 | (d) | 1.56 | (d) | 0.94 | (d) | 57 | (1.83 | )(e) | 0 | |||||||||||||||||||||||||||||||||||||
Class R-5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 12.83 | 0.29 | 0.32 | 0.61 | (0.31 | ) | — | (0.31 | ) | 13.13 | 0.95 | 0.85 | 2.17 | 123 | (c) | 4.77 | 0 | ||||||||||||||||||||||||||||||||||||||||||
12/28/09 | 10/31/10 | 12.11 | 0.22 | 0.69 | 0.91 | (0.19 | ) | — | (0.19 | ) | 12.83 | 0.95 | (d) | 1.85 | (d) | 2.11 | (d) | 50 | 7.53 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||
Class R-6* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08/15/11 | 10/31/11 | 12.70 | 0.06 | 0.44 | 0.50 | (0.07 | ) | — | (0.07 | ) | 13.13 | 0.85 | (d) | 0.96 | (d) | 2.17 | (d) | 123 | (c) | 4.00 | (e) | 0 |
40 | 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 daily average net assets (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning net asset value | Income (loss) | Realized & unrealized gain (loss) | Total | From investment income | From realized gains | Total | Ending net asset value | With expenses waived/ recovered | Without expenses waived/ recovered | Net income (loss) | Portfolio turnover rate (%) | Total return (%) (a) | Ending net assets (millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eagle International Equity Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | $21.50 | $0.03 | $(2.73 | ) | $(2.70 | ) | $(0.51 | ) | $— | $(0.51 | ) | $18.29 | 1.65 | 1.93 | 0.13 | 68 | (12.90 | ) | $23 | ||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 19.52 | 0.09 | 1.89 | 1.98 | — | — | — | 21.50 | 1.74 | 2.04 | 0.46 | 133 | 10.14 | 37 | |||||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 17.80 | 0.20 | 2.23 | 2.43 | (0.71 | )(f) | — | (0.71 | ) | 19.52 | 1.70 | 1.85 | 1.18 | 179 | 14.34 | 52 | |||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 19.32 | (0.13 | ) | (2.44 | ) | (2.57 | ) | (0.34 | ) | — | (0.34 | ) | 16.41 | 2.45 | 2.72 | (0.68 | ) | 68 | (13.58 | ) | 26 | ||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 17.68 | (0.05 | ) | 1.69 | 1.64 | — | — | — | 19.32 | 2.49 | 2.79 | (0.30 | ) | 133 | 9.28 | 46 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 16.15 | 0.06 | 2.01 | 2.07 | (0.54 | )(f) | — | (0.54 | ) | 17.68 | 2.48 | 2.62 | 0.39 | 179 | 13.34 | 65 | |||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 21.67 | 0.07 | (2.70 | ) | (2.63 | ) | (0.62 | ) | — | (0.62 | ) | 18.42 | 1.15 | 1.69 | 0.35 | 68 | (12.57 | ) | 0 | ||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 19.57 | 0.10 | 2.00 | 2.10 | — | — | — | 21.67 | 1.15 | 1.56 | 0.53 | 133 | 10.73 | 1 | |||||||||||||||||||||||||||||||||||||||||||||
03/13/09(g) | 10/31/09 | 13.59 | 0.08 | 5.90 | 5.98 | — | — | — | 19.57 | 1.15 | (d) | 1.50 | (d) | 0.76 | (d) | 179 | 44.00 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||||
02/09/09 | 02/24/09 | (g) | 15.60 | 0.02 | (1.86 | ) | (1.84 | ) | — | — | — | 13.76 | 1.15 | (d) | 1.40 | (d) | 2.92 | (d) | 179 | (11.79 | )(e) | 0 | ||||||||||||||||||||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 20.95 | — | (h) | (2.67 | ) | (2.67 | ) | (0.53 | ) | — | (0.53 | ) | 17.75 | 1.75 | 2.19 | 0.01 | 68 | (13.18 | ) | 0 | |||||||||||||||||||||||||||||||||||||||
12/28/09 | 10/31/10 | 20.80 | (0.79 | ) | 0.94 | 0.15 | — | — | — | 20.95 | 1.74 | (d) | 3.18 | (d) | (4.66 | )(d) | 133 | 0.72 | (e) | 0 | ||||||||||||||||||||||||||||||||||||||||
Class R-5* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 21.49 | 0.14 | (2.77 | ) | (2.63 | ) | (0.62 | ) | — | (0.62 | ) | 18.24 | 1.15 | 1.59 | 0.66 | 68 | (12.70 | ) | 0 | ||||||||||||||||||||||||||||||||||||||||
12/28/09 | 10/31/10 | 20.88 | (0.07 | ) | 0.68 | 0.61 | — | — | — | 21.49 | 1.14 | (d) | 1.78 | (d) | (0.43 | )(d) | 133 | 2.92 | (e) | 0 | ||||||||||||||||||||||||||||||||||||||||
Eagle Investment Grade Bond Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 15.15 | 0.20 | 0.21 | 0.41 | (0.23 | ) | (0.08 | ) | (0.31 | ) | 15.25 | 0.85 | 1.04 | 1.34 | 78 | 2.75 | 58 | ||||||||||||||||||||||||||||||||||||||||||
03/01/10 | 10/31/10 | 14.44 | 0.16 | 0.67 | 0.83 | (0.12 | ) | — | (0.12 | ) | 15.15 | 0.85 | (d) | 1.48 | (d) | 1.51 | (d) | 53 | 5.78 | (e) | 48 | |||||||||||||||||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 15.13 | 0.08 | 0.21 | 0.29 | (0.11 | ) | (0.08 | ) | (0.19 | ) | 15.23 | 1.65 | 1.79 | 0.55 | 78 | 1.95 | 53 | ||||||||||||||||||||||||||||||||||||||||||
03/01/10 | 10/31/10 | 14.44 | 0.07 | 0.68 | 0.75 | (0.06 | ) | — | (0.06 | ) | 15.13 | 1.65 | (d) | 2.23 | (d) | 0.68 | (d) | 53 | 5.23 | (e) | 50 | |||||||||||||||||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 15.17 | 0.24 | 0.20 | 0.44 | (0.26 | ) | (0.08 | ) | (0.34 | ) | 15.27 | 0.60 | 0.74 | 1.58 | 78 | 2.97 | 3 | ||||||||||||||||||||||||||||||||||||||||||
03/01/10 | 10/31/10 | 14.44 | 0.16 | 0.71 | 0.87 | (0.14 | ) | — | (0.14 | ) | 15.17 | 0.60 | (d) | 2.11 | (d) | 1.59 | (d) | 53 | 6.05 | (e) | 4 | |||||||||||||||||||||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 15.15 | 0.16 | 0.19 | 0.35 | (0.18 | ) | (0.08 | ) | (0.26 | ) | 15.24 | 1.15 | 1.39 | 1.04 | 78 | 2.38 | 0 | ||||||||||||||||||||||||||||||||||||||||||
03/01/10 | 10/31/10 | 14.44 | 0.05 | 0.76 | 0.81 | (0.10 | ) | — | (0.10 | ) | 15.15 | 1.14 | (d) | 1.95 | (d) | 0.91 | (d) | 53 | 5.63 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||
Class R-5* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 15.13 | 0.24 | 0.19 | 0.43 | (0.26 | ) | (0.08 | ) | (0.34 | ) | 15.22 | 0.60 | 6.01 | 1.59 | 78 | 2.91 | 0 | ||||||||||||||||||||||||||||||||||||||||||
03/01/10 | 10/31/10 | 14.44 | 0.18 | 0.65 | 0.83 | (0.14 | ) | — | (0.14 | ) | 15.13 | 0.61 | (d) | 4.92 | (d) | 1.77 | (d) | 53 | 5.75 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||
Eagle Large Cap Core Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 13.09 | 0.04 | 0.72 | 0.76 | (0.03 | ) | — | (0.03 | ) | 13.82 | 1.40 | 1.57 | 0.29 | 52 | 5.78 | 10 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 12.01 | 0.04 | 1.10 | 1.14 | (0.06 | ) | — | (0.06 | ) | 13.09 | 1.40 | 1.41 | 0.20 | 48 | 9.48 | 10 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 10.70 | 0.07 | 1.36 | 1.43 | (0.12 | ) | — | (0.12 | ) | 12.01 | 1.38 | 1.47 | 0.68 | 40 | 13.68 | 11 | |||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 12.88 | (0.07 | ) | 0.70 | 0.63 | — | — | — | 13.51 | 2.20 | 2.35 | (0.51 | ) | 52 | 4.89 | 8 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 11.86 | (0.11 | ) | 1.13 | 1.02 | — | — | — | 12.88 | 2.20 | 2.24 | (0.60 | ) | 48 | 8.60 | 9 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 10.53 | (0.01 | ) | 1.35 | 1.34 | (0.01 | ) | — | (0.01 | ) | 11.86 | 2.18 | 2.32 | (0.15 | ) | 40 | 12.78 | 9 | |||||||||||||||||||||||||||||||||||||||||
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 |
The accompanying notes are an integral part of the financial statements. | 41 |
Table of Contents
Financial Highlights
Fiscal periods | From investment operations | Dividends & distributions | Ratios to daily average net assets (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning net asset value | Income (loss) | Realized & unrealized gain (loss) | Total | From investment income | From realized gains | Total | Ending net asset value | With expenses waived/ recovered | Without expenses waived/ recovered | Net income (loss) | Portfolio turnover rate (%) | Total return (%) (a) | Ending net assets (millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eagle Large Cap Core Fund (cont’d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | $13.10 | $0.11 | $0.66 | $0.77 | $(0.09 | ) | $— | $(0.09 | ) | $13.78 | 0.95 | 1.01 | 0.79 | 52 | 5.87 | $5 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 12.02 | 0.13 | 1.05 | 1.18 | (0.10 | ) | — | (0.10 | ) | 13.10 | 0.95 | 1.26 | 0.65 | 48 | 9.90 | 118 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 10.73 | 0.12 | 1.35 | 1.47 | (0.18 | ) | — | (0.18 | ) | 12.02 | 0.95 | 1.28 | 1.18 | 40 | 14.20 | 104 | |||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 13.06 | 0.01 | 0.70 | 0.71 | 0.00 | (h) | — | 0.00 | (h) | 13.77 | 1.65 | 2.87 | 0.04 | 52 | 5.47 | 0 | |||||||||||||||||||||||||||||||||||||||||||
12/28/09 | 10/31/10 | 12.77 | (0.01 | ) | 0.30 | 0.29 | — | — | — | 13.06 | 1.65 | (d) | 2.39 | (d) | (0.13 | )(d) | 48 | 2.27 | (e) | 0 | ||||||||||||||||||||||||||||||||||||||||
Class R-5* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 13.39 | 0.11 | 0.73 | 0.84 | (0.09 | ) | — | (0.09 | ) | 14.14 | 0.95 | 1.37 | 0.73 | 52 | 6.27 | 0 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 12.28 | 0.11 | 1.11 | 1.22 | (0.11 | ) | — | (0.11 | ) | 13.39 | 0.95 | 1.28 | 0.65 | 48 | 9.94 | 0 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 10.76 | 0.11 | 1.41 | 1.52 | — | — | — | 12.28 | 0.95 | 1.22 | 0.97 | 40 | 14.13 | 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 | |||||||||||||||||||||||||||||||||||||||
04/02/07 | 10/31/07 | 16.51 | — | 1.47 | (b) | 1.47 | — | — | — | 17.98 | 0.91 | (d) | 0.91 | (d) | 0.05 | (d) | 45 | 8.90 | (e) | 1 | ||||||||||||||||||||||||||||||||||||||||
Eagle Mid Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | �� | 10/31/11 | 28.03 | (0.19 | ) | 2.12 | 1.93 | — | — | — | 29.96 | 1.23 | 1.23 | (0.60 | ) | 91 | 6.89 | 231 | ||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 21.25 | (0.09 | ) | 6.87 | 6.78 | — | — | — | 28.03 | 1.33 | 1.33 | (0.36 | ) | 96 | 31.91 | 140 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.63 | (0.11 | ) | 2.73 | 2.62 | — | — | — | 21.25 | 1.44 | 1.44 | (0.59 | ) | 127 | 14.06 | 95 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 24.71 | (0.35 | ) | 1.88 | 1.53 | — | — | — | 26.24 | 1.94 | 1.94 | (1.30 | ) | 91 | 6.19 | 72 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 18.88 | (0.24 | ) | 6.07 | 5.83 | — | — | — | 24.71 | 2.10 | 2.10 | (1.11 | ) | 96 | 30.88 | 58 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 16.68 | (0.23 | ) | 2.43 | 2.20 | — | — | — | 18.88 | 2.22 | 2.22 | (1.36 | ) | 127 | 13.19 | 45 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 28.58 | (0.09 | ) | 2.17 | 2.08 | — | — | — | 30.66 | 0.89 | 0.88 | (0.29 | ) | 91 | 7.28 | 60 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 21.58 | (0.02 | ) | 7.02 | 7.00 | — | — | — | 28.58 | 0.95 | 0.95 | (0.07 | ) | 96 | 32.44 | 15 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.83 | (0.02 | ) | 2.77 | 2.75 | — | — | — | 21.58 | 0.95 | 1.05 | (0.13 | ) | 127 | 14.60 | 6 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 27.88 | (0.27 | ) | 2.12 | 1.85 | — | — | — | 29.73 | 1.52 | 1.52 | (0.89 | ) | 91 | 6.64 | 4 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 21.19 | (0.19 | ) | 6.88 | 6.69 | — | — | — | 27.88 | 1.61 | 1.61 | (0.72 | ) | 96 | 31.57 | 1 | |||||||||||||||||||||||||||||||||||||||||||
01/12/09 | 10/31/09 | 16.84 | (0.15 | ) | 4.50 | 4.35 | — | — | — | 21.19 | 1.74 | (d) | 1.74 | (d) | (0.94 | )(d) | 127 | 25.83 | (e) | 0 | ||||||||||||||||||||||||||||||||||||||||
Class R-5* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 28.56 | (0.11 | ) | 2.19 | 2.08 | — | — | — | 30.64 | 0.91 | 0.91 | (0.35 | ) | 91 | 7.28 | 19 | |||||||||||||||||||||||||||||||||||||||||||
12/28/09 | 10/31/10 | 24.70 | (0.12 | ) | 3.98 | 3.86 | — | — | — | 28.56 | 0.95 | (d) | 1.15 | (d) | (0.44 | )(d) | 96 | 15.63 | (e) | 0 | ||||||||||||||||||||||||||||||||||||||||
Class R-6* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08/15/11 | 10/31/11 | 29.65 | (0.02 | ) | 1.13 | 1.11 | — | — | — | 30.76 | 0.85 | (d) | 0.85 | (d) | (0.32 | )(d) | 91 | 3.74 | (e) | 0 | ||||||||||||||||||||||||||||||||||||||||
Eagle Mid Cap Stock Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 25.37 | (0.03 | ) | (0.27 | ) | (0.30 | ) | — | — | — | 25.07 | 1.14 | 1.14 | (0.11 | ) | 242 | (1.18 | ) | 544 | ||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 21.10 | (0.07 | ) | 4.34 | 4.27 | — | — | — | 25.37 | 1.20 | 1.20 | (0.32 | ) | 245 | 20.24 | 736 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.34 | (0.03 | ) | 2.79 | 2.76 | — | — | — | 21.10 | 1.26 | 1.26 | (0.18 | ) | 196 | 15.05 | 812 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 22.28 | (0.19 | ) | (0.23 | ) | (0.42 | ) | — | — | — | 21.86 | 1.85 | 1.85 | (0.83 | ) | 242 | (1.89 | ) | 204 | ||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 18.67 | (0.21 | ) | 3.82 | 3.61 | — | — | — | 22.28 | 1.93 | 1.93 | (1.06 | ) | 245 | 19.34 | 239 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 16.34 | (0.15 | ) | 2.48 | 2.33 | — | — | — | 18.67 | 2.00 | 2.00 | (0.93 | ) | 196 | 14.26 | 232 | |||||||||||||||||||||||||||||||||||||||||||
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 |
42 | 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 daily average net assets (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning net asset value | Income (loss) | Realized & unrealized gain (loss) | Total | From investment income | From realized gains | Total | Ending net asset value | With expenses waived/ recovered | Without expenses waived/ recovered | Net income (loss) | Portfolio turnover rate (%) | Total return (%) (a) | Ending net assets (millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eagle Mid Cap Stock Fund (cont’d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | $25.79 | $0.07 | $(0.28 | ) | $(0.21 | ) | $— | $— | $— | $25.58 | 0.79 | 0.79 | 0.24 | 242 | (0.81 | ) | $163 | ||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 21.36 | 0.01 | 4.42 | 4.43 | — | — | — | 25.79 | 0.79 | 0.79 | 0.06 | 245 | 20.74 | 340 | |||||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.49 | 0.03 | 2.84 | 2.87 | — | — | — | 21.36 | 0.87 | 0.87 | 0.16 | 196 | 15.52 | 254 | |||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 25.17 | (0.11 | ) | (0.26 | ) | (0.37 | ) | — | — | — | 24.80 | 1.43 | 1.43 | (0.43 | ) | 242 | (1.47 | ) | 5 | ||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 20.98 | (0.13 | ) | 4.32 | 4.19 | — | — | — | 25.17 | 1.41 | 1.41 | (0.57 | ) | 245 | 19.97 | 4 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.26 | (0.06 | ) | 2.78 | 2.72 | — | — | — | 20.98 | 1.40 | 1.40 | (0.35 | ) | 196 | 14.90 | 3 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Class R-5* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 25.83 | 0.05 | (0.28 | ) | (0.23 | ) | — | — | — | 25.60 | 0.85 | 0.85 | 0.18 | 242 | (0.89 | ) | 65 | ||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 21.39 | 0.02 | 4.42 | 4.44 | — | — | — | 25.83 | 0.78 | 0.78 | 0.09 | 245 | 20.76 | 72 | |||||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 18.50 | 0.05 | 2.84 | 2.89 | — | — | — | 21.39 | 0.79 | 0.79 | 0.28 | 196 | 15.62 | 60 | |||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||
Class R-6* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08/15/11 | 10/31/11 | 25.41 | 0.01 | 0.28 | 0.29 | — | — | — | 25.70 | 0.85 | (d) | 0.85 | (d) | 0.24 | (d) | 242 | 1.14 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||||
Eagle Small Cap Core Value Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 19.63 | (0.05 | ) | 2.23 | 2.18 | — | (1.76 | ) | (1.76 | ) | 20.05 | 1.40 | 1.44 | (0.25 | ) | 36 | 11.35 | 12 | |||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 16.54 | (0.09 | ) | 3.75 | 3.66 | — | (0.57 | ) | (0.57 | ) | 19.63 | 1.50 | 1.67 | (0.46 | ) | 22 | 22.63 | 10 | |||||||||||||||||||||||||||||||||||||||||
11/03/08 | 10/31/09 | 14.29 | (0.07 | ) | 2.32 | 2.25 | — | — | — | 16.54 | 1.48 | (d) | 4.53 | (d) | (0.45 | )(d) | 23 | 15.75 | (e) | 6 | ||||||||||||||||||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 19.32 | (0.22 | ) | 2.18 | 1.96 | — | (1.76 | ) | (1.76 | ) | 19.52 | 2.28 | 2.21 | (1.13 | ) | 36 | 10.31 | 6 | |||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 16.41 | (0.23 | ) | 3.71 | 3.48 | — | (0.57 | ) | (0.57 | ) | 19.32 | 2.30 | 2.49 | (1.25 | ) | 22 | 21.69 | 5 | |||||||||||||||||||||||||||||||||||||||||
11/03/08 | 10/31/09 | 14.29 | (0.19 | ) | 2.31 | 2.12 | — | — | — | 16.41 | 2.28 | (d) | 5.37 | (d) | (1.27 | )(d) | 23 | 14.84 | (e) | 3 | ||||||||||||||||||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 19.80 | 0.04 | 2.24 | 2.28 | (0.01 | ) | (1.76 | ) | (1.77 | ) | 20.31 | 0.95 | 1.19 | 0.20 | 36 | 11.81 | 61 | ||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 16.59 | 0.02 | 3.77 | 3.79 | (0.01 | ) | (0.57 | ) | (0.58 | ) | 19.80 | 0.95 | 1.56 | 0.11 | 22 | 23.39 | 56 | ||||||||||||||||||||||||||||||||||||||||||
03/09/09 | 10/31/09 | 9.65 | (0.01 | ) | 6.95 | 6.94 | — | — | — | 16.59 | 0.95 | (d) | 1.80 | (d) | (0.04 | )(d) | 23 | 71.92 | (e) | 49 | ||||||||||||||||||||||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 19.60 | (0.11 | ) | 2.23 | 2.12 | — | (1.76 | ) | (1.76 | ) | 19.96 | 1.70 | 1.67 | (0.55 | ) | 36 | 11.03 | 0 | |||||||||||||||||||||||||||||||||||||||||
12/28/09 | 10/31/10 | 17.86 | (0.11 | ) | 1.85 | 1.74 | — | — | — | 19.60 | 1.71 | (d) | 2.68 | (d) | (0.69 | )(d) | 22 | 9.74 | (e) | 0 | ||||||||||||||||||||||||||||||||||||||||
Class R-5* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 19.79 | 0.04 | 2.25 | 2.29 | (0.02 | ) | (1.76 | ) | (1.78 | ) | 20.30 | 0.95 | 1.13 | 0.21 | 36 | 11.83 | 0 | ||||||||||||||||||||||||||||||||||||||||||
12/28/09 | 10/31/10 | 17.92 | 0.01 | 1.86 | 1.87 | — | — | — | 19.79 | 0.97 | (d) | 1.96 | (d) | 0.05 | (d) | 22 | 10.44 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||||
Class R-6* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08/15/11 | 10/31/11 | 19.44 | 0.01 | 0.85 | 0.86 | — | — | — | 20.30 | 0.85 | (d) | 1.24 | (d) | 0.17 | (d) | 36 | 4.42 | (e) | 0 | |||||||||||||||||||||||||||||||||||||||||
Eagle Small Cap Growth Fund | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 33.79 | (0.27 | ) | 5.41 | 5.14 | — | — | — | 38.93 | 1.16 | 1.16 | (0.69 | ) | 36 | 15.21 | 497 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 25.10 | (0.16 | ) | 8.85 | 8.69 | — | — | — | 33.79 | 1.31 | 1.31 | (0.55 | ) | 49 | 34.62 | 266 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 22.52 | (0.18 | ) | 2.76 | 2.58 | — | — | — | 25.10 | 1.37 | 1.37 | (0.83 | ) | 110 | 11.46 | 200 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Class C* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 28.65 | (0.46 | ) | 4.59 | 4.13 | — | — | — | 32.78 | 1.86 | 1.86 | (1.40 | ) | 36 | 14.42 | 108 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 21.44 | (0.31 | ) | 7.52 | 7.21 | — | — | — | 28.65 | 2.05 | 2.05 | (1.25 | ) | 49 | 33.63 | 72 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 19.40 | (0.30 | ) | 2.34 | 2.04 | — | — | — | 21.44 | 2.17 | 2.17 | (1.63 | ) | 110 | 10.52 | 60 | |||||||||||||||||||||||||||||||||||||||||||
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 |
The accompanying notes are an integral part of the financial statements. | 43 |
Table of Contents
Financial Highlights
Fiscal periods | From investment operations | Dividends & distributions | Ratios to daily average net assets (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning net asset value | Income (loss) | Realized & unrealized gain (loss) | Total | From investment income | From realized gains | Total | Ending net asset value | With expenses waived/ recovered | Without expenses waived/ recovered | Net income (loss) | Portfolio turnover rate (%) | Total return (%) (a) | Ending net assets (millions) | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning | Ending | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Eagle Small Cap Growth Fund (cont’d) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class I* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | $34.41 | $(0.14 | ) | $5.38 | $5.24 | $— | $— | $— | $39.65 | 0.82 | 0.83 | (0.37 | ) | 36 | 15.23 | $679 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 25.44 | (0.12 | ) | 9.09 | 8.97 | — | — | — | 34.41 | 0.86 | 0.86 | (0.34 | ) | 49 | 35.26 | 97 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 22.72 | (0.08 | ) | 2.80 | 2.72 | — | — | — | 25.44 | 0.87 | 0.87 | (0.37 | ) | 110 | 11.97 | 20 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Class R-3* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 33.52 | (0.34 | ) | 5.40 | 5.06 | — | — | — | 38.58 | 1.37 | 1.37 | (0.90 | ) | 36 | 15.10 | 48 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 24.96 | (0.19 | ) | 8.75 | 8.56 | — | — | — | 33.52 | 1.55 | 1.55 | (0.66 | ) | 49 | 34.29 | 2 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 22.44 | (0.18 | ) | 2.70 | 2.52 | — | — | — | 24.96 | 1.54 | 1.54 | (1.01 | ) | 110 | 11.23 | 2 | |||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||
Class R-5* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
11/01/10 | 10/31/11 | 34.39 | (0.16 | ) | 5.51 | 5.35 | — | — | — | 39.74 | 0.85 | 0.85 | (0.39 | ) | 36 | 15.56 | 138 | |||||||||||||||||||||||||||||||||||||||||||
11/01/09 | 10/31/10 | 25.43 | (0.04 | ) | 9.00 | 8.96 | — | — | — | 34.39 | 0.88 | 0.88 | (0.14 | ) | 49 | 35.23 | 49 | |||||||||||||||||||||||||||||||||||||||||||
11/01/08 | 10/31/09 | 22.72 | (0.09 | ) | 2.80 | 2.71 | — | — | — | 25.43 | 0.90 | 0.90 | (0.40 | ) | 110 | 11.93 | 30 | |||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||||||||||||||||||
Class R-6* | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
08/15/11 | 10/31/11 | 37.85 | (0.06 | ) | 1.97 | 1.91 | — | — | — | 39.76 | 0.85 | (d) | 0.85 | (d) | (0.75 | )(d) | 36 | 5.05 | (e) | 65 |
* 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) Includes redemption fee amounts that represent less than $0.01 per share. (c) The Growth & Income Fund changed its sub advisor effective June 1, 2011. (d) Annualized. (e) Not annualized. (f) Includes tax return of capital distribution of $0.02 per share. (g) There were no shares outstanding from February 28, 2009 through March 12, 2009. (h) Per share amount is less than $0.005.
44 | The accompanying notes are an integral part of the financial statements. |
Table of Contents
10.31.2011 |
NOTE 1 | Organization and investment objective | The Eagle Capital Appreciation Fund, Eagle Growth & Income Fund and Eagle Series Trust (each a “Trust” and collectively the “Trusts” or the “Eagle Family of Funds”) 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. Members of the Boards of Trustees (“Boards”) for the Trusts may serve as Trustees for one or more of the Trusts. 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 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 seven series:
• | The Eagle International Equity Fund (“International Equity Fund”) seeks capital appreciation principally through investment in a portfolio of international equity securities, |
• | The Eagle Investment Grade Bond Fund (“Investment Grade Bond Fund”) seeks current income and preservation of capital, |
• | The Eagle Large Cap Core Fund (“Large Cap Core Fund”) seeks long-term growth through capital appreciation, |
• | The Eagle Mid Cap Growth Fund (“Mid Cap Growth Fund”) seeks long-term capital appreciation, |
• | The Eagle Mid Cap Stock Fund (“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”) 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. The Growth & Income Fund, the Mid Cap Growth Fund, the Mid Cap Stock Fund, the Small Cap Core Value Fund, and the Small Cap Growth Fund are authorized and currently offer class R-6 shares to qualified buyers.
• | For all funds except the Investment Grade Bond Fund, Class A shares are sold at a maximum front-end sales |
charge of 4.75%. For the Investment Grade Bond Fund, Class A shares are sold at a maximum front-end sales charge of 3.75%. 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 up to 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 within one year of purchase. |
• | Class I, Class R-3, Class R-5 and Class R-6 shares are each sold without a front-end sales charge or a CDSC to qualified buyers. |
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. Eastern time), 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; |
• | 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; |
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• | 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 the 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 than the market price of such security 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 the prices provided by the pricing service and independent quoted prices are unreliable, the Valuation Committee will fair value the security 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 a 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 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. |
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• | 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. |
• | Investment companies | Investments in other investment companies are valued at their reported net asset value. |
Fair value measurement | Each Fund utilizes a three-level hierarchy of inputs to establish a classification of fair value measurements. 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 October 31, 2011.
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Total | ||||||||||
Capital Appreciation Fund | ||||||||||||
Domestic common stocks (a) | $398,185,054 | $ — | $398,185,054 | |||||||||
Total investment portfolio | $398,185,054 | $ — | $398,185,054 | |||||||||
Growth & Income Fund | ||||||||||||
Domestic common stocks (a) | $196,471,074 | $ — | $196,471,074 | |||||||||
Foreign common stocks (a) | 24,765,810 | — | 24,765,810 | |||||||||
Total investment portfolio | $221,236,884 | $ — | $221,236,884 | |||||||||
International Equity Fund | ||||||||||||
Foreign common stocks | ||||||||||||
Advertising | $ 180,040 | $276,481 | $ 456,521 | |||||||||
Aerospace/defense | — | 372,155 | 372,155 |
Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Total | ||||||||||
International Equity Fund (cont’d) | ||||||||||||
Agriculture | $— | $636,242 | $636,242 | |||||||||
Apparel | — | 273,246 | 273,246 | |||||||||
Auto manufacturers | — | 2,354,718 | 2,354,718 | |||||||||
Auto parts & equipment | — | 165,868 | 165,868 | |||||||||
Banks | 923,358 | 3,015,936 | 3,939,294 | |||||||||
Beverages | 361,977 | 150,069 | 512,046 | |||||||||
Biotechnology | — | 429,895 | 429,895 | |||||||||
Building materials | — | 261,709 | 261,709 | |||||||||
Chemicals | 1,351,381 | 564,575 | 1,915,956 | |||||||||
Cosmetics/personal care | — | 782,147 | 782,147 | |||||||||
Distribution/wholesale | — | 730,138 | 730,138 | |||||||||
Electric | — | 605,832 | 605,832 | |||||||||
Electrical components & equipment | — | 893,227 | 893,227 | |||||||||
Engineering & construction | — | 2,147,167 | 2,147,167 | |||||||||
Food | — | 1,947,372 | 1,947,372 | |||||||||
Food service | — | 255,192 | 255,192 | |||||||||
Hand/machine tools | — | 186,967 | 186,967 | |||||||||
Healthcare products | — | 1,764,028 | 1,764,028 | |||||||||
Holding companies—diversified | — | 1,884,139 | 1,884,139 | |||||||||
Household products/wares | — | 343,416 | 343,416 | |||||||||
Insurance | 551,523 | 552,248 | 1,103,771 | |||||||||
Internet | 1,546,304 | 180,502 | 1,726,806 | |||||||||
Lodging | — | 576,610 | 576,610 | |||||||||
Machinery—construction & mining | — | 1,024,895 | 1,024,895 | |||||||||
Machinery-diversified | — | 468,276 | 468,276 | |||||||||
Mining | 1,686,046 | 2,304,496 | 3,990,542 | |||||||||
Miscellaneous manufacturer | — | 296,715 | 296,715 | |||||||||
Office/business equipment | — | 131,199 | 131,199 | |||||||||
Oil & gas | 2,097,711 | 2,532,852 | 4,630,563 | |||||||||
Oil & gas services | — | 766,044 | 766,044 | |||||||||
Pharmaceuticals | 1,049,981 | 1,940,848 | 2,990,829 | |||||||||
Real estate | — | 807,985 | 807,985 | |||||||||
Retail | — | 3,412,057 | 3,412,057 | |||||||||
Semiconductors | — | 313,772 | 313,772 | |||||||||
Software | — | 283,281 | 283,281 | |||||||||
Telecommunications | — | 1,609,922 | 1,609,922 | |||||||||
Transportation | — | 106,102 | 106,102 | |||||||||
Foreign preferred stocks | ||||||||||||
Auto manufacturers | — | 448,016 | 448,016 |
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Quoted prices in active markets for identical assets (Level 1) | Significant other observable inputs (Level 2) | Total | ||||||||||
International Equity Fund (cont’d) | ||||||||||||
Household products/wares | $— | $152,025 | $152,025 | |||||||||
Other financial instruments (appreciation) (b) | 70,171 | — | 70,171 | |||||||||
Other financial instruments (depreciation) (b) | (304,371 | ) | — | (304,371 | ) | |||||||
Total investment portfolio | $9,514,121 | $37,948,364 | $47,462,485 | |||||||||
Investment Grade Bond Fund | ||||||||||||
Domestic corporate bonds (a) | $— | $54,852,961 | $ 54,852,961 | |||||||||
Foreign corporate bonds (a) | — | 10,837,963 | 10,837,963 | |||||||||
U.S. Treasuries | — | 17,079,361 | 17,079,361 | |||||||||
Domestic mortgage-backed obligations | — | 5,921,582 | 5,921,582 | |||||||||
Foreign mortgage-backed obligations | — | 9,167,023 | 9,167,023 | |||||||||
U.S. Government Agency securities (a) | — | 6,487,646 | 6,487,646 | |||||||||
Foreign government securities | — | 3,282,318 | 3,282,318 | |||||||||
Supranational banks | — | 3,152,906 | 3,152,906 | |||||||||
Total investment portfolio | $ — | $110,781,760 | $110,781,760 | |||||||||
Large Cap Core Fund | ||||||||||||
Domestic common stocks (a) | $20,702,890 | $— | $20,702,890 | |||||||||
Investment companies | 330,852 | — | 330,852 | |||||||||
Total investment portfolio | $21,033,742 | $— | $21,033,742 | |||||||||
Mid Cap Growth Fund | ||||||||||||
Domestic common stocks (a) | $380,333,523 | $— | $380,333,523 | |||||||||
Total investment portfolio | $380,333,523 | $— | $380,333,523 | |||||||||
Mid Cap Stock Fund | ||||||||||||
Domestic common stocks (a) | $974,378,978 | $— | $974,378,978 | |||||||||
Total investment portfolio | $974,378,978 | $— | $974,378,978 | |||||||||
Small Cap Core Value Fund | ||||||||||||
Domestic common stocks (a) | $75,962,643 | $— | $75,962,643 | |||||||||
Investment companies (a) | 346,320 | — | 346,320 | |||||||||
Total investment portfolio | $76,308,963 | $— | $76,308,963 | |||||||||
Small Cap Growth Fund | ||||||||||||
Domestic common stocks (a) | $1,467,342,264 | $— | $1,467,342,264 | |||||||||
Total investment portfolio | $1,467,342,264 | $— | $1,467,342,264 | |||||||||
(a) Please see the investment portfolio for detail by industry. | ||||||||||||
(b) Other financial instruments include foreign forward currency contracts which are valued at the unrealized appreciation/ (depreciation) of the instrument. |
As of October 31, 2011, none of the Funds had any investments classified as Level 3, and there were no significant transfers in or out of levels 1, 2, or 3.
Derivative instruments | Authoritative guidance over derivatives requires qualitative disclosures about the objectives and strategies for using derivative instruments, quantitative disclosures about the fair value of, and gains and losses on, derivative instruments, as well as disclosures about credit-risk-related contingent features in derivative agreements.
During the fiscal year ended October 31, 2011, the International Equity Fund engaged in limited derivative activity. The contract amounts in the Investment Portfolio are representative of typical volumes.
Fair values of derivative instruments for the International Equity Fund as of October 31, 2011 are as follows:
Type of derivative | Balance sheet location | Value | ||||
Assets | ||||||
Forward foreign currency contracts | Unrealized gain on forward foreign currency exchange contracts | $70,171 | ||||
Liabilities | ||||||
Forward foreign currency contracts | Unrealized loss on forward foreign currency exchange contracts | $304,371 |
The effect of derivative instruments on the International Equity Fund’s Statement of Operations for the fiscal year ended October 31, 2011 is as follows:
Type of derivative | Forward foreign currency contracts | |
Location of gain (loss) on derivatives recognized in income | Net realized gain (loss) on foreign currency transactions/Net change in unrealized appreciation (depreciation) on translation of assets and liabilities denominated in foreign currencies | |
Realized gain (loss) on derivatives recognized in income | $(221,654) | |
Change in unrealized appreciation (depreciation) on derivatives recognized in income | $(77,658) |
During the fiscal year ended October 31, 2011, no other Fund engaged in derivative activity.
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
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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. Net realized gain (loss) from foreign currency transactions also includes the effect of any Brazilian IOF tax.
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 translated to U.S. dollars using forward exchange rates provided by a pricing service as of the close of the NYSE 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. At October 31, 2011, none of the Funds held a repurchase agreement.
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 its 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 funds expenses. These custodian credits are shown as “Expense offsets” in the Statement of Operations.
Class allocations | Each class of shares has equal rights to earnings and assets except that each class may bear different expenses 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 Fund except the Investment Grade Bond Fund and the Growth & Income Fund, distributions of net investment income are made annually. Distributions of net investment income in the Investment Grade Bond Fund and the Growth & Income Fund are made monthly and quarterly, respectively. Net realized gains from investment transactions during any particular fiscal year in excess of available capital loss carryforwards, which, if not distributed, would be taxable to each Fund, will be distributed to
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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 to shareholders from net investment income were as follows:
Distributions from net investment income | 11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | ||||||
Growth & Income Fund | ||||||||
Class A | $2,761,512 | $1,850,645 | ||||||
Class C | 1,076,255 | 634,872 | ||||||
Class I | 411,068 | 119,020 | ||||||
Class R-3 | 12,186 | 4,819 | ||||||
Class R-5 | 107 | 38 | ||||||
Class R-6 | 15 | — | ||||||
International Equity Fund | ||||||||
Class A | 838,237 | — | ||||||
Class C | 738,065 | — | ||||||
Class I | 13,109 | — | ||||||
Class R-3 | 64 | — | ||||||
Class R-5 | 74 | — | ||||||
Investment Grade Bond Fund | ||||||||
Class A | 784,310 | 261,590 | ||||||
Class C | 380,410 | 116,920 | ||||||
Class I | 54,671 | 11,613 | ||||||
Class R-3 | 654 | 72 | ||||||
Class R-5 | 46 | 24 | ||||||
Large Cap Core Fund | ||||||||
Class A | 20,050 | 50,802 | ||||||
Class C | — | — | ||||||
Class I | 796,534 | 914,784 | ||||||
Class R-3 | 1 | — | ||||||
Class R-5 | 149 | 161 | ||||||
Small Cap Core Value Fund | ||||||||
Class A | — | — | ||||||
Class C | — | — | ||||||
Class I | 38,786 | 37,838 | ||||||
Class R-3 | — | — | ||||||
Class R-5 | 2 | — | ||||||
Class R-6 | — | — |
Distributions paid to shareholders from net realized gains were as follows:
Distributions from net realized gains | 11/1/10 to 10/31/11 | 11/1/09 to 10/31/10 | ||||||
Investment Grade Bond Fund | ||||||||
Class A | $255,024 | $ — | ||||||
Class C | 266,145 | — | ||||||
Class I | 17,814 | — | ||||||
Class R-3 | 283 | — | ||||||
Class R-5 | 13 | — | ||||||
Small Cap Core Value Fund | ||||||||
Class A | 920,371 | 233,817 | ||||||
Class C | 462,137 | 131,025 | ||||||
Class I | 4,901,232 | 1,662,986 | ||||||
Class R-3 | 246 | — | ||||||
Class R-5 | 246 | — | ||||||
Class R-6 | — | — |
Offering and organizational costs | Offering costs of $79,835 associated with the formation of the Investment Grade Bond 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. For the fiscal year ended October 31, 2011, the Fund amortized to expense the remaining $26,827 of offering costs that had been deferred.
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 fiscal year ended October 31, 2011, purchases and sales of investment securities (excluding repurchase agreements and short-term obligations) were as follows:
Purchases | Sales | |||||||
Capital Appreciation Fund | $219,528,192 | $410,613,647 | ||||||
Growth & Income Fund | 291,463,323 | 278,739,121 | ||||||
International Equity Fund | 46,256,372 | 76,079,718 | ||||||
Investment Grade Bond Fund | ||||||||
Stocks and long-term debt securities | 79,173,762 | 51,606,351 | ||||||
Long-Term U.S. Treasury Securities | 12,173,153 | 28,183,432 |
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Purchases | Sales | |||||||
Large Cap Core Fund | $49,928,704 | $163,939,775 | ||||||
Mid Cap Growth Fund | 447,150,705 | 288,026,559 | ||||||
Mid Cap Stock Fund | 3,089,906,784 | 3,505,245,416 | ||||||
Small Cap Core Value Fund | 27,723,703 | 28,324,611 | ||||||
Small Cap Growth Fund | 1,259,677,181 | 349,016,694 |
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 | % % % | ||
Investment Grade Bond Fund | All assets | 0.30 | % | |||||
Large Cap Core Fund | All assets | 0.60 | % | |||||
Mid Cap Growth Fund, Mid Cap Stock Fund, Small Cap Core Value Fund, 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, Class R-5 and Class R-6 shares.
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 subadvisory agreement with the subadvisor to the Growth & Income Fund was terminated effective June 1, 2011.
The Manager entered into a subadvisory agreement 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 the Fund’s average daily net assets, computed daily and payable monthly.
Distribution and service 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 (“Rule 12b-1 Plans”), the Funds are 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. Each Fund of the Series Trust is authorized to pay the Distributor distribution and service fees of up to 0.35% of that fund’s average daily net assets attributable to Class A shares of that fund. Capital Appreciation Fund and Growth & Income Fund are authorized to pay the Distributor distribution and service fees of up to 0.50% of those Funds’ average daily net assets attributable to Class A shares of those Funds. Currently, the distribution and service fee is 0.25% for Class A shares. Each Fund is authorized to pay the Distributor distribution and services fees of 1% for Class C shares, and 0.50% for Class R-3 shares. The Distribution plans for Class I and Class R-5 shares do not authorize a distribution fee to be paid from Fund assets.
Sales charges | For the fiscal year ended October 31, 2011, total front-end sales charges 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 | $66,598 | $9 | $2,495 | |||||||||
Growth & Income Fund | 317,478 | 38 | 6,540 | |||||||||
International Equity Fund | 18,485 | — | 1,331 | |||||||||
Investment Grade Bond Fund | 51,464 | 3,698 | 27,134 | |||||||||
Large Cap Core Fund | 3,746 | 11 | 650 | |||||||||
Mid Cap Growth Fund | 377,142 | 735 | 8,328 | |||||||||
Mid Cap Stock Fund | 263,609 | 3,353 | 10,978 | |||||||||
Small Cap Core Value Fund | 30,304 | — | 773 | |||||||||
Small Cap Growth Fund | 588,416 | 12,951 | 7,988 |
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The Distributor paid commissions to salespersons from these fees and incurred other distribution costs.
Agency commissions | For the fiscal year ended October 31, 2011, 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 | $343,512 | $2,690 | ||||||
Growth & Income Fund | 304,828 | — | ||||||
International Equity Fund | 146,023 | — | ||||||
Investment Grade Bond Fund | — | — | ||||||
Large Cap Core Fund | 82,743 | — | ||||||
Mid Cap Growth Fund | 458,265 | 41,564 | ||||||
Mid Cap Stock Fund | 3,495,813 | 41,563 | ||||||
Small Cap Core Value Fund | 56,308 | 71 | ||||||
Small Cap Growth Fund | 1,052,569 | 36,906 |
Internal audit fees | RJA provides internal audit services to the Funds. Each Fund pays RJA a fixed and/or hourly fee for these services.
Shareholder servicing fees | Eagle Fund Services, Inc. (“EFS”), an affiliate of the Manager, is the shareholder servicing agent for each of the Funds. EFS’ actual cost of providing such services is reimbursed by the Funds on a pro-rata basis of each Fund’s relative total net assets. The amount of Shareholder servicing fees charged to the Funds were as follows:
Shareholder servicing fees | 11/1/10 to 10/31/11 | |||
Capital Appreciation Fund Class A | $113,555 | |||
Capital Appreciation Fund Class C | 12,975 | |||
Capital Appreciation Fund Class I | 2,118 | |||
Capital Appreciation Fund Class R-3 | 274 | |||
Capital Appreciation Fund Class R-5 | 4,838 | |||
Capital Appreciation Fund Class R-6 | N/A | |||
Growth & Income Fund Class A | 26,584 | |||
Growth & Income Fund Class C | 11,749 | |||
Growth & Income Fund Class I | 1,590 | |||
Growth & Income Fund Class R-3 | 133 | |||
Growth & Income Fund Class R-5 | — | |||
Growth & Income Fund Class R-6 | — |
Shareholder servicing fees (cont’d) | 11/1/10 to 10/31/11 | |||
International Equity Fund Class A | $7,468 | |||
International Equity Fund Class C | 7,106 | |||
International Equity Fund Class I | 37 | |||
International Equity Fund Class R-3 | 19 | |||
International Equity Fund Class R-5 | — | |||
International Equity Fund Class R-6 | N/A | |||
Investment Grade Bond Fund Class A | 5,304 | |||
Investment Grade Bond Fund Class C | 6,359 | |||
Investment Grade Bond Fund Class I | 425 | |||
Investment Grade Bond Fund Class R-3 | 6 | |||
Investment Grade Bond Fund Class R-5 | — | |||
Investment Grade Bond Fund Class R-6 | N/A | |||
Large Cap Core Fund Class A | 1,692 | |||
Large Cap Core Fund Class C | 1,695 | |||
Large Cap Core Fund Class I | 25,147 | |||
Large Cap Core Fund Class R-3 | — | |||
Large Cap Core Fund Class R-5 | 2 | |||
Large Cap Core Fund Class R-6 | N/A | |||
Mid Cap Growth Fund Class A | 33,863 | |||
Mid Cap Growth Fund Class C | 10,045 | |||
Mid Cap Growth Fund Class I | 4,006 | |||
Mid Cap Growth Fund Class R-3 | 400 | |||
Mid Cap Growth Fund Class R-5 | 314 | |||
Mid Cap Growth Fund Class R-6 | — | |||
Mid Cap Stock Fund Class A | 157,343 | |||
Mid Cap Stock Fund Class C | 42,816 | |||
Mid Cap Stock Fund Class I | 38,862 | |||
Mid Cap Stock Fund Class R-3 | 1,176 | |||
Mid Cap Stock Fund Class R-5 | 14,750 | |||
Mid Cap Stock Fund Class R-6 | — | |||
Small Cap Core Value Fund Class A | 1,571 | |||
Small Cap Core Value Fund Class C | 1,065 | |||
Small Cap Core Value Fund Class I | 13,840 | |||
Small Cap Core Value Fund Class R-3 | 1 | |||
Small Cap Core Value Fund Class R-5 | — | |||
Small Cap Core Value Fund Class R-6 | — | |||
Small Cap Growth Fund Class A | 71,863 | |||
Small Cap Growth Fund Class C | 14,639 | |||
Small Cap Growth Fund Class I | 36,790 | |||
Small Cap Growth Fund Class R-3 | 1,310 | |||
Small Cap Growth Fund Class R-5 | 12,120 | |||
Small Cap Growth Fund Class R-6 | — |
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Expense limitations | 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 | Class A | Class C | Class I | |||||||||
Capital Appreciation Fund | 1.40% | 2.20% | 0.95% | |||||||||
Growth & Income Fund | 1.40% | 2.20% | 0.95% | |||||||||
International Equity Fund | 1.75% | 2.55% | 1.15% | |||||||||
Investment Grade Bond Fund | 0.85% | 1.65% | 0.60% | |||||||||
Large Cap Core Fund | 1.40% | 2.20% | 0.95% | |||||||||
Mid Cap Growth Fund | 1.50% | 2.30% | 0.95% | |||||||||
Mid Cap Stock Fund | 1.50% | 2.30% | 0.95% | |||||||||
Small Cap Core Value Fund | 1.50% | 2.30% | 0.95% | |||||||||
Small Cap Growth Fund | 1.50% | 2.30% | 0.95% | |||||||||
Expense limitations rate schedule (cont’d) | Class R-3 | Class R-5 | Class R-6 | |||||||||
Capital Appreciation Fund | 1.65% | 0.95% | N/A | |||||||||
Growth & Income Fund | 1.65% | 0.95% | 0.85% | |||||||||
International Equity Fund | 1.75% | 1.15% | N/A | |||||||||
Investment Grade Bond Fund | 1.15% | 0.60% | N/A | |||||||||
Large Cap Core Fund | 1.65% | 0.95% | N/A | |||||||||
Mid Cap Growth Fund | 1.70% | 0.95% | 0.85% | |||||||||
Mid Cap Stock Fund | 1.70% | 0.95% | 0.85% | |||||||||
Small Cap Core Value Fund | 1.70% | 0.95% | 0.85% | |||||||||
Small Cap Growth Fund | 1.70% | 0.95% | 0.85% |
Fees and expenses waived and/or reimbursed based on the expense rate limitation schedule were as follows:
Expenses waived and/or reimbursed | 11/1/10 to 10/31/11 | |||
Growth & Income Fund Class R-6 | $1 | |||
International Equity Fund | 217,607 | |||
International Equity Fund Class I | 532 | |||
International Equity Fund Class R-3 | 3 | |||
International Equity Fund Class R-5 | 4 | |||
Investment Grade Bond Fund | 1 | |||
Investment Grade Bond Fund Class A | 96,010 | |||
Investment Grade Bond Fund Class C | 71,573 | |||
Investment Grade Bond Fund Class I | 4,295 | |||
Investment Grade Bond Fund Class R-3 | 124 | |||
Investment Grade Bond Fund Class R-5 | 142 | |||
Large Cap Core Fund | 29,640 | |||
Large Cap Core Fund Class A | 2,694 |
Expenses waived and/or reimbursed (cont’d) | 11/1/10 to 10/31/11 | |||
Large Cap Core Fund Class I | $49,180 | |||
Large Cap Core Fund Class R-3 | 29 | |||
Large Cap Core Fund Class R-5 | 61 | |||
Small Cap Core Value Fund | 87,392 | |||
Small Cap Core Value Fund Class I | 77,351 | |||
Small Cap Core Value Fund Class R-5 | 1 | |||
Small Cap Core Value Fund Class R-6 | 1 | |||
Small Cap Growth Fund Class R-6 | 277 |
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 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 | 10/31/2013 | 10/31/2012 | ||||||
Growth & Income Fund Class R-5 | $— | $16 | ||||||
Growth & Income Fund Class R-6 | 1 | — | ||||||
International Equity Fund | 217,607 | 291,011 | ||||||
International Equity Fund Class I | 532 | 448 | ||||||
International Equity Fund Class R-3 | 3 | 62 | ||||||
International Equity Fund Class R-5 | 4 | 38 | ||||||
Investment Grade Bond Fund | 1 | 172,164 | ||||||
Investment Grade Bond Fund Class A | 96,010 | 34,565 | ||||||
Investment Grade Bond Fund Class C | 71,573 | 19,525 | ||||||
Investment Grade Bond Fund Class I | 4,295 | 22,527 | ||||||
Investment Grade Bond Fund Class R-3 | 124 | 36 | ||||||
Investment Grade Bond Fund Class R-5 | 142 | 206 | ||||||
Large Cap Core Fund | 29,640 | — | ||||||
Large Cap Core Fund Class A | 2,694 | 826 | ||||||
Large Cap Core Fund Class C | — | 3,389 | ||||||
Large Cap Core Fund Class I | 49,180 | 346,050 | ||||||
Large Cap Core Fund Class R-3 | 29 | 16 | ||||||
Large Cap Core Fund Class R-5 | 61 | 70 | ||||||
Small Cap Core Value Fund | 87,392 | 102,180 | ||||||
Small Cap Core Value Fund Class I | 77,351 | 239,365 | ||||||
Small Cap Core Value Fund Class R-3 | — | 9 |
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Recoverable expenses | 10/31/2013 | 10/31/2012 | ||||||
Small Cap Core Value Fund Class R-5 | $1 | $21 | ||||||
Small Cap Core Value Fund Class R-6 | 1 | — | ||||||
Small Cap Growth Fund Class R-6 | 277 | — |
The Manager recovered previously waived expenses as follows:
Recovered fees previously waived | 11/1/10 to 10/31/11 | |||
Growth & Income Fund Class A | $213 | |||
Growth & Income Fund Class I | 2,156 | |||
Growth & Income Fund Class R-5 | 3 | |||
International Equity Fund Class A | 10,862 | |||
International Equity Fund Class C | 18,806 | |||
Large Cap Core Fund Class C | 273 | |||
Mid Cap Growth Fund Class I | 2,629 | |||
Mid Cap Growth Fund Class R-5 | 60 | |||
Small Cap Core Value Fund Class A | 8,561 | |||
Small Cap Core Value Fund Class C | 10,978 | |||
Small Cap Core Value Fund Class R-3 | 12 |
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 fund 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 Funds except for the Funds’ Chief Compliance Officer. A portion of the Chief Compliance Officer’s total compensation is paid equally by each fund 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 accounting principles generally accepted in the United States of America; 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. The difference between book-basis and tax-basis net unrealized appreciation (depreciation) are primarily attributable to the deferral of losses from wash sales and other book and tax differences including the realization of unrealized gains/losses on passive foreign investment companies for tax purposes, and forward foreign currency contracts. The Manager has analyzed the Funds’ tax positions taken or expected to be taken on federal income tax returns for all open tax years (tax years ended October 31, 2008 to October 31, 2011) and has concluded that no provision for federal income tax is required in the Funds’ financial statements.
Capital Appreciation Fund | For the fiscal year ended October 31, 2011, to reflect reclassifications arising from permanent book/tax differences primarily attributable to net operating losses not utilized, the Capital Appreciation Fund decreased (credited) accumulated net investment loss by $628,420 and accumulated net realized loss by $20,992 and decreased (debited) paid-in capital by $649,412. As of October 31, 2011, the Capital Appreciation Fund had net tax basis capital loss carryforwards in the aggregate of $57,433,291 which may be applied to any net taxable capital gain until October 31, 2017.
Growth & Income Fund | For the fiscal year ended October 31, 2011, to reflect reclassifications arising from permanent book/tax differences primarily attributable to foreign currency transactions, distribution redesignation, return of capital distributions from real estate investment trusts, and adjustments for partnership distributions and income, the Growth & Income Fund decreased (debited) accumulated net investment income by $87,961 and paid-in capital by $264,750 and increased (credited) accumulated net realized gain by $352,711. As of October 31, 2011, the Growth and Income Fund did not have any net tax basis capital loss carryforwards.
International Equity Fund | For the fiscal year ended October 31, 2011, to reflect reclassifications arising from permanent book/tax differences primarily attributable to foreign currency transactions, net operating losses not utilized and investments in passive foreign investment companies, the International Equity Fund decreased (credited) accumulated net investment loss by $959,952 and increased (debited) accumulated net
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realized loss by $1,286,213 and increased (credited) paid-in capital by $326,261. As of October 31, 2011, the International Equity Fund had net tax basis capital loss carryforwards in the aggregate of $82,091,395 of which $28,261,000 may be applied to any net taxable capital gain until October 31, 2016 with the balance of $53,830,395 expiring on October 31, 2017.
Investment Grade Bond Fund | For the fiscal year ended October 31, 2011, the Investment Grade Bond Fund did not have any permanent book/tax differences. As of October 31, 2011, the Investment Grade Bond Fund did not have any net tax basis capital loss carryforwards.
Large Cap Core Fund | For the fiscal year ended October 31, 2011, to reflect reclassifications arising from permanent book/tax differences primarily attributable to return of capital distributions from real estate investment trusts, and the Large Cap Core Fund decreased (debited) accumulated net investment income by $13,177 and decreased (credited) accumulated net realized loss by $13,175 and increased (credited) paid-in capital by $2. As of October 31, 2011, the Large Cap Core Fund had net tax basis capital loss carryforwards in the aggregate of $43,744,525 of which $4,947,591 may be applied to any net taxable capital gain until October 31, 2016, of which $37,319,289 may be applied to any net taxable capital gain until October 31, 2017 with the balance of $1,477,645 expiring on October 31, 2018.
Mid Cap Growth Fund | For the fiscal year ended October 31, 2011, to reflect reclassifications arising from permanent book/tax differences primarily attributable to net operating losses not utilized, the Mid Cap Growth Fund decreased (credited) accumulated net investment loss by $2,287,785, and decreased (debited) paid-in capital by $2,287,785. As of October 31, 2011, the Mid Cap Growth Fund had net tax basis capital loss carryforwards in the aggregate of $2,740,584 which may be applied to any net taxable capital gain until October 31, 2017.
Mid Cap Stock Fund | For the fiscal year ended October 31, 2011, to reflect reclassifications arising from permanent book/tax differences primarily attributable to net operating losses not utilized and return of capital distributions from real estate investment trusts and other securities, the Mid Cap Stock Fund decreased (credited) accumulated net investment loss by $2,178,916 and decreased (credited) accumulated net realized loss by $499,252 and decreased (debited) paid-in capital by $2,678,168. As of October 31, 2011, the Mid Cap Stock Fund had net tax basis capital loss carryforwards in the aggregate of $61,892,850 which may be applied to any net taxable capital gain until October 31, 2017.
Small Cap Core Value Fund | For the fiscal year ended October 31, 2011, to reflect reclassifications arising from permanent book/tax differences primarily attributable to net operating losses utilized, return of capital distributions from real estate investment trusts and distribution redesignations, the Small Cap Core Value Fund decreased (credited) accumulated net investment loss by $20,641 and decreased (debited) accumulated net realized gain by $31,555 and increased (credited) paid-in capital by $10,914. As of October 31, 2011, the Small Cap Core Value Fund did not have any net tax basis capital loss carryforwards.
Small Cap Growth Fund | For the fiscal year ended October 31, 2011, to reflect reclassifications arising from permanent book/tax differences primarily attributable to net operating losses not utilized and return of capital distributions from real estate investment trusts and other securities, the Small Cap Growth Fund decreased (credited) accumulated net investment loss by $5,974,439 and decreased (credited) accumulated net realized loss by $323,876 and decreased (debited) paid-in capital by $6,298,315. As of October 31, 2011, the Small Cap Growth Fund had net tax basis capital loss carryforwards in the aggregate of $9,286,621 which may be applied to any net taxable capital gain until October 31, 2017.
On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “Act”) was enacted, which changed various technical rules governing the tax treatment of regulated investment companies. The changes are generally effective for taxable years beginning after the date of enactment. Under the Act, each Fund will be permitted to carry forward capital losses incurred in taxable years beginning after the date of enactment for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred in pre-enactment taxable years, which carry an expiration date. As a result of this ordering rule, pre-enactment capital loss carryforwards may be more likely to expire unused.
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For income tax purposes, distributions paid during the fiscal years indicated were as follows:
Ordinary income | Long-term Capital gains | |||||||||||||||
10/31/11 | 10/31/10 | 10/31/11 | 10/31/10 | |||||||||||||
Capital Appreciation Fund | $— | $— | $— | $— | ||||||||||||
Growth & Income Fund | 4,261,143 | 2,609,394 | — | — | ||||||||||||
International Equity Fund | 1,589,549 | — | — | — | ||||||||||||
Investment Grade Bond Fund | 1,759,370 | 390,219 | — | — | ||||||||||||
Large Cap Core Fund | 816,734 | 965,747 | — | — | ||||||||||||
Mid Cap Growth Fund | — | — | — | — | ||||||||||||
Mid Cap Stock Fund | — | — | — | — | ||||||||||||
Small Cap Core Value Fund | 1,542,600 | 2,065,661 | 4,780,420 | — | ||||||||||||
Small Cap Growth Fund | — | — | — | — |
As of October 31, 2011, the identified cost of investments in securities owned by each Fund for federal income tax purposes were as follows:
Identified cost | ||||
Capital Appreciation Fund | $292,512,025 | |||
Growth & Income Fund | 221,999,348 | |||
International Equity Fund | 43,541,962 | |||
Investment Grade Bond Fund | 108,115,997 | |||
Large Cap Core Fund | 19,464,326 | |||
Mid Cap Growth Fund | 324,596,821 | |||
Mid Cap Stock Fund | 917,684,479 | |||
Small Cap Core Value Fund | 54,266,781 | |||
Small Cap Growth Fund | 1,287,609,270 |
As of October 31, 2011, 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 | $118,353,149 | $ | (12,680,120 | ) | $105,673,029 | |||||||
Growth & Income Fund | 9,237,958 | (10,000,422 | ) | (762,464 | ) | |||||||
International Equity Fund | 7,251,788 | (3,097,065 | ) | 4,154,723 | ||||||||
Investment Grade Bond Fund | 2,747,186 | (81,423 | ) | 2,665,763 | ||||||||
Large Cap Core Fund | 2,439,622 | (870,206 | ) | 1,569,416 | ||||||||
Mid Cap Growth Fund | 65,947,473 | (10,210,771 | ) | 55,736,702 | ||||||||
Mid Cap Stock Fund | 82,568,149 | (25,873,650 | ) | 56,694,499 | ||||||||
Small Cap Core Value Fund | 25,861,283 | (3,819,101 | ) | 22,042,182 | ||||||||
Small Cap Growth Fund | 271,998,713 | (92,265,719 | ) | 179,732,994 |
As of October 31, 2011, the components of distributable earnings on a tax basis were as follows:
Undistributed ordinary income | Undistributed long-term gain | |||||||
Capital Appreciation Fund | $— | $— | ||||||
Growth & Income Fund | — | 12,154,993 | ||||||
International Equity Fund | — | — | ||||||
Investment Grade Bond Fund | 408,909 | 706,830 | ||||||
Large Cap Core Fund | 354,047 | — | ||||||
Mid Cap Growth Fund | — | — | ||||||
Mid Cap Stock Fund | — | — | ||||||
Small Cap Core Value Fund | 414,615 | 10,012,231 | ||||||
Small Cap Growth Fund | — | — |
NOTE 6 | Recent Accounting Pronouncements | In May 2011, the Financial Accounting Standards Board (“FASB”) issued “Fair Value Managements and Disclosure Requirements in U.S. GAAP and IFRSs” (“ASU 2011-04”). ASU 2011-04 clarifies the application of existing fair value measurement requirements, changes certain principles related to measuring fair value, and requires additional disclosures about fair value measurents.
Specifially, the guidance specifies that’s the concepts of highest and best use and valuation premise in a fair value measurement are only relevant when measuring the fair value of nonfinancial assets whereas they are not relevant when measuring the fair value of financial assets and liabilities.
Required disclosures are expanded under new guidance, especially for fair value measurements that are categorized within Level 3 of the fair value hierarchy, for which quantitative information about the unobservable inputs used, and a narrative description of the valuation processes in place and sensitivity of recurring Level 3 measurements to changes in unobservable inputs will be required. Entities will also be required to disclose the categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial position but for which the fair value is required to be disclosed.
ASU 2011-04 is effective for annual periods beginning after December 15, 2011 and is to be applied prospectively. The Manager is currently assessing the impact of this guidance on their financial statements.
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NOTE 7 | Subsequent events | On August 16, 2011, the Board of Trustees of Eagle Series Trust approved a reorganization (the “Reorganization”) of the Eagle Large Cap Core Fund, a series of the Trust, into the Eagle Growth & Income Fund. The Reorganization does not require approval by shareholders of the Eagle Large Cap Core Fund and is expected to take place at the close of business on or about January 20, 2012. The Reorganization is intended to qualify as a tax-free transaction for federal income tax purposes. As a result of the Reorganization, effective December 16, 2011, the Eagle Large Cap Core Fund will no longer accept purchases or exchanges into the Fund.
Effective February 20, 2012, J.P. Morgan Investor Services Co. (“J.P. Morgan”), the transfer and dividend disbursing agent for each Fund, will enter into a sub-transfer agency arrangement with U.S. Bancorp Fund Services, LLC (“USBFS”). Effective with this arrangement, USBFS, on behalf of J.P. Morgan, will perform certain transfer agency, dividend disbursing and shareholder servicing activities for customers of the Funds. For further information, please see the supplemented prospectus for the Funds.
The Board of Trustees for the Funds has approved a name change for the Eagle Small Cap Core Value Fund. Effective March 1, 2012, the Eagle Small Cap Core Value Fund will become the Eagle Smaller Company Fund.
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Report of Independent Registered Certified Public Accounting Firm
To the Board of Trustees and Shareholders of Eagle Capital Appreciation Fund, Eagle Growth & Income Fund, Eagle International Equity Fund, Eagle Investment Grade Bond Fund, Eagle Large Cap Core Fund, Eagle Mid Cap Growth Fund, Eagle Mid Cap Stock Fund, Eagle Small Cap Core Value Fund and Eagle Small Cap Growth Fund:
In our opinion, the accompanying statements of assets and liabilities, including the investment portfolios, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Eagle Capital Appreciation Fund, Eagle Growth & Income Fund, Eagle International Equity Fund, Eagle Investment Grade Bond Fund, Eagle Large Cap Core Fund, Eagle Mid Cap Growth Fund, Eagle Mid Cap Stock Fund, Eagle Small Cap Core Value Fund and Eagle Small Cap Growth Fund (hereafter referred to collectively as the “Funds”), at October 31, 2011, and the results of each of their operations, the changes in each of their net assets and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
December 19, 2011
PricewaterhouseCoopers LLP, 4221 West Boy Scout Boulevard, Suite 200, Tampa, FL 33607
T: (813) 229 0221, F: (813) 229 3646, www.pwc.com/us
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Understanding Your Ongoing Costs
UNAUDITED | 10.31.2011 |
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 on May 1, 2011, and held through October 31, 2011. It also shows how much a $1,000 investment would be worth at the close of the year, 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 account value May 1, 2011 | Ending account value October 31, 2011 | Expenses paid during period (a) | Annualized expense ratio | |||||||||||||
Eagle Capital Appreciation Fund | ||||||||||||||||
Class A | $1,000.00 | $907.80 | $5.91 | 1.23% | ||||||||||||
Class C | $1,000.00 | $904.70 | $8.98 | 1.87% | ||||||||||||
Class I | $1,000.00 | $909.20 | $4.28 | 0.89% | ||||||||||||
Class R-3 | $1,000.00 | $906.20 | $7.45 | 1.55% | ||||||||||||
Class R-5 | $1,000.00 | $909.10 | $4.57 | 0.95% | ||||||||||||
Eagle Growth & Income Fund | ||||||||||||||||
Class A | $1,000.00 | $933.60 | $6.04 | 1.24% | ||||||||||||
Class C | $1,000.00 | $930.70 | $9.39 | 1.93% | ||||||||||||
Class I | $1,000.00 | $935.70 | $4.20 | 0.86% | ||||||||||||
Class R-3 | $1,000.00 | $932.30 | $7.60 | 1.56% | ||||||||||||
Class R-5 | $1,000.00 | $935.60 | $4.59 | 0.94% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1,040.00 | $1.83 | 0.85% | ||||||||||||
Eagle International Equity Fund | ||||||||||||||||
Class A | $1,000.00 | $790.40 | $7.09 | 1.57% | ||||||||||||
Class C | $1,000.00 | $787.10 | $10.95 | 2.43% | ||||||||||||
Class I | $1,000.00 | $792.30 | $5.20 | 1.15% | ||||||||||||
Class R-3 | $1,000.00 | $786.10 | $7.97 | 1.77% | ||||||||||||
Class R-5 | $1,000.00 | $789.30 | $5.10 | 1.13% | ||||||||||||
Eagle Investment Grade Bond Fund | ||||||||||||||||
Class A | $1,000.00 | $1,038.10 | $4.37 | 0.85% | ||||||||||||
Class C | $1,000.00 | $1,034.10 | $8.46 | 1.65% | ||||||||||||
Class I | $1,000.00 | $1,039.40 | $3.08 | 0.60% | ||||||||||||
Class R-3 | $1,000.00 | $1,036.60 | $5.90 | 1.15% | ||||||||||||
Class R-5 | $1,000.00 | $1,038.80 | $3.13 | 0.61% | ||||||||||||
Eagle Large Cap Core Fund | ||||||||||||||||
Class A | $1,000.00 | $904.50 | $6.86 | 1.43% | ||||||||||||
Class C | $1,000.00 | $900.70 | $10.78 | 2.25% | ||||||||||||
Class I | $1,000.00 | $903.00 | $4.56 | 0.95% | ||||||||||||
Class R-3 | $1,000.00 | $903.00 | $8.06 | 1.68% | ||||||||||||
Class R-5 | $1,000.00 | $906.40 | $4.56 | 0.95% | ||||||||||||
Eagle Mid Cap Growth Fund | ||||||||||||||||
Class A | $1,000.00 | $876.80 | $5.91 | 1.25% | ||||||||||||
Class C | $1,000.00 | $874.40 | $9.12 | 1.93% | ||||||||||||
Class I | $1,000.00 | $879.00 | $4.17 | 0.88% | ||||||||||||
Class R-3 | $1,000.00 | $876.00 | $7.47 | 1.58% | ||||||||||||
Class R-5 | $1,000.00 | $878.90 | $4.31 | 0.91% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1,037.40 | $1.83 | 0.85% |
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Understanding Your Ongoing Costs
UNAUDITED | 10.31.2011 |
Beginning account value May 1, 2011 | Ending account value October 31, 2011 | Expenses paid during period (a) | Annualized expense ratio | |||||||||||||
Eagle Mid Cap Stock Fund | ||||||||||||||||
Class A | $1,000.00 | $852.40 | $5.37 | 1.15% | ||||||||||||
Class C | $1,000.00 | $849.60 | $8.48 | 1.82% | ||||||||||||
Class I | $1,000.00 | $854.40 | $3.41 | 0.73% | ||||||||||||
Class R-3 | $1,000.00 | $851.10 | $6.91 | 1.48% | ||||||||||||
Class R-5 | $1,000.00 | $853.60 | $4.06 | 0.87% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1,011.40 | $1.80 | 0.85% | ||||||||||||
Eagle Small Cap Core Value Fund | ||||||||||||||||
Class A | $1,000.00 | $896.70 | $6.21 | 1.30% | ||||||||||||
Class C | $1,000.00 | $892.10 | $10.78 | 2.26% | ||||||||||||
Class I | $1,000.00 | $898.30 | $4.55 | 0.95% | ||||||||||||
Class R-3 | $1,000.00 | $895.10 | $8.17 | 1.71% | ||||||||||||
Class R-5 | $1,000.00 | $898.20 | $4.55 | 0.95% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1,044.20 | $1.83 | 0.85% | ||||||||||||
Eagle Small Cap Growth Fund | ||||||||||||||||
Class A | $1,000.00 | $906.80 | $5.67 | 1.18% | ||||||||||||
Class C | $1,000.00 | $903.80 | $8.88 | 1.85% | ||||||||||||
Class I | $1,000.00 | $905.90 | $3.99 | 0.83% | ||||||||||||
Class R-3 | $1,000.00 | $907.10 | $6.63 | 1.38% | ||||||||||||
Class R-5 | $1,000.00 | $908.30 | $4.14 | 0.86% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1,050.50 | $1.84 | 0.85% |
(a) Expenses are calculated using each Fund’s 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 (184), and then dividing that result by the actual number of days in the fiscal year (365). (b) Class R-6 commenced operations on August 15, 2011.
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 May 1, 2011 through October 31, 2011 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 May 1, 2011 | Ending account value October 31, 2011 | Expenses paid during period (a) | Annualized expense ratio | |||||||||||||
Eagle Capital Appreciation Fund | ||||||||||||||||
Class A | $1,000.00 | $1,019.00 | $6.26 | 1.23% | ||||||||||||
Class C | $1,000.00 | $1,015.78 | $9.50 | 1.87% | ||||||||||||
Class I | $1,000.00 | $1,020.72 | $4.53 | 0.89% | ||||||||||||
Class R-3 | $1,000.00 | $1,017.39 | $7.88 | 1.55% | ||||||||||||
Class R-5 | $1,000.00 | $1,020.42 | $4.84 | 0.95% | ||||||||||||
Eagle Growth & Income Fund | ||||||||||||||||
Class A | $1,000.00 | $1,018.95 | $6.31 | 1.24% | ||||||||||||
Class C | $1,000.00 | $1,015.48 | $9.80 | 1.93% | ||||||||||||
Class I | $1,000.00 | $1,020.87 | $4.38 | 0.86% | ||||||||||||
Class R-3 | $1,000.00 | $1,017.34 | $7.93 | 1.56% | ||||||||||||
Class R-5 | $1,000.00 | $1,020.47 | $4.79 | 0.94% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1,020.92 | $4.33 | 0.85% | ||||||||||||
Eagle International Equity Fund | ||||||||||||||||
Class A | $1,000.00 | $1,017.29 | $7.98 | 1.57% | ||||||||||||
Class C | $1,000.00 | $1,012.96 | $12.33 | 2.43% | ||||||||||||
Class I | $1,000.00 | $1,019.41 | $5.85 | 1.15% | ||||||||||||
Class R-3 | $1,000.00 | $1,016.28 | $9.00 | 1.77% | ||||||||||||
Class R-5 | $1,000.00 | $1,019.51 | $5.75 | 1.13% |
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UNAUDITED | 10.31.2011 |
Beginning account value May 1, 2011 | Ending account value October 31, 2011 | Expenses paid during period (a) | Annualized expense ratio | |||||||||||||
Eagle Investment Grade Bond Fund | ||||||||||||||||
Class A | $1,000.00 | $1,020.92 | $4.33 | 0.85% | ||||||||||||
Class C | $1,000.00 | $1,016.89 | $8.39 | 1.65% | ||||||||||||
Class I | $1,000.00 | $1,022.18 | $3.06 | 0.60% | ||||||||||||
Class R-3 | $1,000.00 | $1,019.41 | $5.85 | 1.15% | ||||||||||||
Class R-5 | $1,000.00 | $1,022.13 | $3.11 | 0.61% | ||||||||||||
Eagle Large Cap Core Fund | ||||||||||||||||
Class A | $1,000.00 | $1,018.00 | $7.27 | 1.43% | ||||||||||||
Class C | $1,000.00 | $1,013.86 | $11.42 | 2.25% | ||||||||||||
Class I | $1,000.00 | $1,020.42 | $4.84 | 0.95% | ||||||||||||
Class R-3 | $1,000.00 | $1,016.74 | $8.54 | 1.68% | ||||||||||||
Class R-5 | $1,000.00 | $1,020.42 | $4.84 | 0.95% | ||||||||||||
Eagle Mid Cap Growth Fund | ||||||||||||||||
Class A | $1,000.00 | $1,018.90 | $6.36 | 1.25% | ||||||||||||
Class C | $1,000.00 | $1,015.48 | $9.80 | 1.93% | ||||||||||||
Class I | $1,000.00 | $1,020.77 | $4.48 | 0.88% | ||||||||||||
Class R-3 | $1,000.00 | $1,017.24 | $8.03 | 1.58% | ||||||||||||
Class R-5 | $1,000.00 | $1,020.62 | $4.63 | 0.91% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1020.92 | $4.33 | 0.85% | ||||||||||||
Eagle Mid Cap Stock Fund | ||||||||||||||||
Class A | $1,000.00 | $1,019.41 | $5.85 | 1.15% | ||||||||||||
Class C | $1,000.00 | $1,016.03 | $9.25 | 1.82% | ||||||||||||
Class I | $1,000.00 | $1,021.53 | $3.72 | 0.73% | ||||||||||||
Class R-3 | $1,000.00 | $1,017.74 | $7.53 | 1.48% | ||||||||||||
Class R-5 | $1,000.00 | $1,020.82 | $4.43 | 0.87% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1,020.92 | $4.33 | 0.85% | ||||||||||||
Eagle Small Cap Core Value Fund | ||||||||||||||||
Class A | $1,000.00 | $1,018.65 | $6.61 | 1.30% | ||||||||||||
Class C | $1,000.00 | $1,013.81 | $11.47 | 2.26% | ||||||||||||
Class I | $1,000.00 | $1,020.42 | $4.84 | 0.95% | ||||||||||||
Class R-3 | $1,000.00 | $1,016.59 | $8.69 | 1.71% | ||||||||||||
Class R-5 | $1,000.00 | $1,020.42 | $4.84 | 0.95% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1,020.92 | $4.33 | 0.85% | ||||||||||||
Eagle Small Cap Growth Fund | ||||||||||||||||
Class A | $1,000.00 | $1,019.26 | $6.01 | 1.18% | ||||||||||||
Class C | $1,000.00 | $1,015.88 | $9.40 | 1.85% | ||||||||||||
Class I | $1,000.00 | $1,021.02 | $4.23 | 0.83% | ||||||||||||
Class R-3 | $1,000.00 | $1,018.25 | $7.02 | 1.38% | ||||||||||||
Class R-5 | $1,000.00 | $1,020.87 | $4.38 | 0.86% | ||||||||||||
Class R-6 (b) | $1,000.00 | $1,020.92 | $4.33 | 0.85% |
(a) Expenses are calculated using each Fund’s 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 (184), and then dividing that result by the actual number of days in the fiscal year (365). (b) Class R-6 commenced operations on August 15, 2011.
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Renewal of Investment Advisory and Subadvisory Agreements
UNAUDITED |
Overview | At a meeting held on August 16, 2011, the Boards of Trustees for the Eagle Capital Appreciation Fund, Eagle Growth & Income Fund and Eagle Series Trust, including their independent members (together, the “Board”), approved the renewal of the investment advisory agreement between the: (1) Eagle Capital Appreciation Fund and Eagle Asset Management, Inc. (“Eagle”); (2) Eagle Growth & Income Fund and Eagle; and (3) Eagle Series Trust, on behalf of the Eagle International Equity Fund, Eagle Investment Grade Bond Fund, Eagle Large Cap Core Fund, Eagle Mid Cap Growth Fund, Eagle Mid Cap Stock Fund, Eagle Small Cap Core Value Fund and Eagle Small Cap Growth Fund, and Eagle. Each of the Funds mentioned is referred to as a “Fund” and collectively, the “Funds.”
The Board also approved the renewal of the investment subadvisory agreement with: (1) Goldman Sachs Asset Management, L.P. (“GSAM”) as subadviser to the Eagle Capital Appreciation Fund; (2) Artio Global Investors, Inc. (“Artio”) as subadviser to the Eagle International Equity Fund; and (3) Eagle Boston Investment Management, Inc. (“EBIM”) as subadviser to the Eagle Small Cap Core Value Fund. The investment advisory and subadvisory agreements are referred to herein as an “Agreement” and collectively, the “Agreements.” GSAM, Artio and EBIM are collectively referred to as the “Subadvisers.”
In renewing the Agreements, the Board took into consideration information furnished for the Board’s review and consideration throughout the year at regular Board meetings, as well as information specifically prepared in connection with the annual renewal process. The Board, acting directly or through its committees, has been provided with information and reports relevant to the annual renewal of the Agreements, including: reports regarding the services and support provided to the Funds and their shareholders by Eagle, the Subadvisers and J.P. Morgan Chase Bank, N.A. and its affiliates (collectively, “J.P. Morgan”), a third-party that provides sub-administration, transfer agent, fund accounting and custody services to the Funds; information on the Funds’ performance and commentary on the reasons for the performance; presentations by Fund portfolio managers addressing, as applicable, Eagle’s and the Subadvisers’ investment philosophy, investment strategy, personnel and operations; compliance and audit reports concerning the Funds, Eagle, the Subadvisers and J.P. Morgan, including responses to issues raised therein; and information on relevant developments in the mutual fund industry and how the Eagle Funds and/or Eagle are responding to them.
As part of the renewal process, the Board, with the assistance of independent legal counsel, requested and received additional reports containing substantial and detailed information regarding the Funds, Eagle and the Subadvisers. Among other matters, these reports included information on: (1) the nature and extent of the advisory and other services provided by Eagle and the Subadvisers; (2) the personnel of Eagle and the Subadvisers; (3) the financial condition of Eagle and the Subadvisers; (4) the compliance programs and records of Eagle and the Subadvisers; (5) the performance of the Funds as compared to their peer groups and appropriate benchmarks; (6) the Funds’ expenses, including the advisory fee rates, the overall expense structures of the Funds, both in absolute terms and relative to peer funds, and any applicable contractual expense limitations; (7) the anticipated effect of growth and size on the Funds’ performance and expenses, where applicable; (8) benefits to be realized by Eagle, the Subadvisers and their respective affiliates; and (9) the estimated profitability of Eagle and the Subadvisers under the Agreements, when available. The Board posed questions to various management personnel of Eagle regarding certain key aspects of the materials submitted in support of the renewal.
With respect to the renewal of the Agreements, the Board considered various factors, including: (1) the nature, extent and quality of services provided to the Funds; (2) the investment performance of the Funds; (3) the costs of the services provided to the Funds and the profits realized by Eagle, the Subadvisers and their respective affiliates from their relationship with the Funds; (4) the extent to which economies of scale have been realized as the Funds grow; (5) whether the level of fees reflects those economies of scale for the benefit of the Funds’ investors; (6) comparisons of services and fees with contracts entered into by Eagle and the Subadvisers with other clients (such as pension funds and other institutional investors); and (7) any other benefits derived by Eagle or the Subadvisers from their relationships with the Funds.
Provided below is a discussion of the factors the Board considered at its August meeting to form the basis of its renewal of the Agreements. The Board did not identify any particular information that was most relevant to its consideration to renew the Agreements and each Trustee may have accorded different weight to the various factors.
Nature, Extent and Quality of Services | The Board considered that Eagle and the Subadvisers are experienced in serving as investment advisers for the Funds and have provided a continuous investment program, including investment
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selection, credit review and market analysis among other matters, for the Funds. The Board noted that Eagle oversees and monitors the performance and services provided by the Subadvisers and J.P. Morgan, and is responsible for the selection of Fund subadvisers. In addition, the Board noted that Eagle is responsible for oversight of compliance with the Funds’ policies and objectives, review of brokerage matters, oversight of the Funds’ compliance with applicable law, and implementation of Board directives as they relate to the Funds. The Board noted that shareholders in the Funds have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Eagle, and that the Funds’ shareholders, with the opportunity to review and weigh the disclosure provided by the Funds in their prospectus and other public disclosures, have chosen to invest in the Funds.
The Board noted that each Subadviser is responsible for making investment decisions on behalf of its respective Fund and placing all orders for the purchase and sale of investments for the Fund with brokers or dealers. The Board considered information regarding: (1) the background and experience of Eagle and Subadviser personnel who provide services to the Funds; (2) material compliance matters during the last year, if any, and certifications as to the adequacy of the compliance programs of Eagle and each Subadviser; (3) the financial information regarding Eagle and each Subadviser, as provided; and (4) Eagle’s recommendation to continue to retain the Subadvisers to manage the Funds.
Investment Performance | The Board considered comparisons of each Fund’s Class A performance, including, if applicable, a Fund’s one-, three-, five- and ten-year annualized total returns for the period ended June 30, 2011, relative to the average performance of its peer group funds and benchmark indexes. The Board also considered the performance of Eagle relative to the composite performance of comparable accounts managed by Eagle, as well as the performance of the Subadvisers relative to other accounts managed by the Subadvisers, to the extent such information was available.
With respect to the Eagle Capital Appreciation Fund, the Board noted the following specific factors regarding performance: (1) the Fund underperformed its benchmark index for all relevant time periods; (2) the Fund outperformed the average performance of its peer group funds for the five- and ten-year periods, but underperformed for the one- and three-year periods; and (3) the Fund has outperformed comparable accounts managed by GSAM for the one-, three- and ten-year periods,
but underperformed for the five-year period. The Board also noted GSAM’s explanation that its security selections through recent periods of slow economic recovery were the primary reasons for the Fund’s underperformance.
With respect to the Eagle Growth & Income Fund, the Board noted the following specific factors regarding performance: (1) the Fund outperformed its benchmark index for all relevant time periods with the exception of the one-year period, during which the Fund underperformed; (2) the Fund outperformed the average performance of its peer group funds for all relevant time periods with the exception of the one-year period, during which the Fund underperformed; (3) the Fund has outperformed the composite performance of comparable accounts managed by Eagle for all relevant time periods with the exception of the one-year period, during which the Fund underperformed; and (4) the Fund’s overall 5-star Morningstar rating.
With respect to the Eagle International Equity Fund, the Board noted the following specific factors regarding performance: (1) the Fund underperformed its benchmark index for all relevant time periods; (2) the Fund outperformed the average performance of its peer group funds for the five- and ten-year periods, but underperformed for the one- and three-year periods; and (3) the Fund has outperformed the average performance of comparable accounts managed by Artio for all relevant time periods. The Board also noted Artio’s explanation that its defensive investment positioning in 2009 and overweight positions to Asia and developed markets materials were the primary reasons for the Fund’s underperformance. In this regard, the Board noted that it would continue to monitor the investment performance of the Fund.
With respect to the Eagle Investment Grade Bond Fund, the Board noted the following specific factors regarding performance: (1) the Fund commenced operations in March 2010; (2) the Fund underperformed its benchmark index for the one-year period; (3) the Fund underperformed the average performance of its peer group funds for the one-year period; and (4) the Fund has outperformed the composite performance of comparable accounts managed by Eagle for the one-year period. In this regard, the Board noted that the Fund commenced operations in March 2010 and it is reasonable to permit the Fund to establish a longer performance record for purposes of evaluating performance.
With respect to the Eagle Large Cap Core Fund, the Board noted the following specific factors regarding performance: (1) the Fund underperformed its benchmark index for all
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UNAUDITED |
relevant time periods; (2) the Fund outperformed the average performance of its peer group funds for the three- and five-year periods, but underperformed for the one-year period; and (3) the Fund underperformed the composite performance of comparable accounts managed by Eagle for all relevant time periods. The Board also noted that the Fund was scheduled to be reorganized into the Eagle Growth & Income Fund during the first quarter of 2012.
With respect to the Eagle Mid Cap Growth Fund, the Board noted the following specific factors regarding performance: (1) the Fund outperformed its benchmark index for the one-, five- and ten-year periods, but underperformed for the three-year period; (2) the Fund outperformed the average performance of its peer group funds for the five- and ten-year periods, but underperformed for the one- and three-year periods; (3) the Fund outperformed the composite performance of comparable accounts managed by Eagle for the three-, five- and ten-year periods, but underperformed for the one-year period; and (4) the Fund’s overall 4-star Morningstar rating.
With respect to the Eagle Mid Cap Stock Fund, the Board noted the following specific factors regarding performance: (1) the Fund underperformed its benchmark index for all relevant time periods; (2) the Fund outperformed the average performance of its peer group funds for the ten-year period, but underperformed for the one-, three- and five-year periods; (3) the Fund outperformed the composite performance of comparable accounts managed by Eagle for all relevant time periods; and (4) the Fund’s overall 4-star Morningstar rating. The Board also noted Eagle’s explanation that the primary reason for the Fund’s underperformance was due to its overweight positions to consumer discretionary and industrials and energy sectors. In this regard, the Board considered recent modifications that Eagle has made to the portfolio management team for the Fund.
With respect to the Eagle Small Cap Core Value Fund, the Board noted the following specific factors regarding performance: (1) the Fund commenced operations in November 2008; (2) the Fund outperformed its benchmark index for the one-year period; (3) the Fund outperformed the average performance of its Morningstar peer group funds for the one-year period; and (4) the Fund outperformed comparable institutional accounts managed by EBIM for the one-year period.
With respect to the Eagle Small Cap Growth Fund, the Board noted the following specific factors regarding performance: (1) the Fund outperformed its benchmark index for all relevant
time periods; (2) the Fund outperformed the average performance of its peer group funds for all relevant time periods; (3) the Fund outperformed the composite performance of comparable accounts managed by Eagle for the one- and three-year periods, but underperformed for the five- and ten-year periods; and (4) the Fund’s overall 4-star Morningstar rating.
Fees and Expenses | The Board considered the advisory fee rate payable by each Fund to Eagle under the Agreement, the subadvisory fee rate payable to a Subadviser, each Fund’s total expense ratio and its Rule 12b-1 fees. The Board also considered comparisons of a Fund’s expense ratio (with and without Rule 12b-1 fees) to the average expense ratio of its peer group based on data ended June 30, 2011. In addition, the Board noted that Eagle had undertaken contractual and/or voluntary expense limitations with respect to the Funds for its 2011 fiscal year, which will continue for the 2012 fiscal year.
With respect to the Eagle Capital Appreciation Fund, the Board noted that the Fund’s expense ratio was lower than the average expense ratio of its peer group. With respect to GSAM’s subadvisory rate, GSAM represented its fee rate schedule is lower than the standard fee rates charged to a comparable mutual fund subadvised by GSAM.
With respect to Eagle Growth & Income Fund, the Board noted that the Fund’s expense ratio was lower than the average expense ratio of its peer group and the fee rate that Eagle charges to its comparably managed institutional accounts.
With respect to the Eagle International Equity Fund, the Board noted that the Fund’s expense ratio (including the contractual cap) was higher than the average expense ratio of its peer group. With respect to Artio’s subadvisory fee rate, Artio represented that its fee rate is equal to or lower than that charged to comparable fund clients.
With respect to the Eagle Investment Grade Bond Fund, the Board noted that the Fund’s expense ratio (including the contractual cap) was lower than the average expense ratio of its peer group. The Board also noted that Eagle’s fee rate is higher than that charged to comparable institutional accounts.
With respect to the Eagle Large Cap Core Fund, the Board noted that the Fund’s expense ratio was lower than the average expense ratio of its peer group. The Board also noted that Eagle’s fee rate is higher than that charged to comparable institutional accounts. The Board also noted that the Fund was scheduled to be reorganized into the Eagle Growth & Income Fund during the first quarter of 2012.
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UNAUDITED |
With respect to the Eagle Mid Cap Growth Fund, the Board noted that the Fund’s expense ratio was lower than the average expense ratio of its peer group and the fee rate that Eagle charges to its comparably managed institutional accounts.
With respect to the Eagle Mid Cap Stock Fund, the Board noted that the Fund’s expense ratio was lower than the average expense ratio of its peer group and the fee rate that Eagle charges to its comparably managed institutional accounts.
With respect to the Eagle Small Cap Core Value Fund, the Board noted that the Fund’s expense ratio (including the contractual cap) was higher than the average expense ratio of its peer group. With respect to EBIM’s subadvisory fee rate, EBIM represented that certain of its clients with performance incentive fees may pay a lower base fee than the Fund.
With respect to the Eagle Small Cap Growth Fund, the Board noted that the Fund’s expense ratio was lower than the average expense ratio of its peer group and the fee rate that Eagle charges to its comparably managed institutional accounts.
Costs, Profitability and Economies of Scale | The Board evaluated Eagle’s and, to the extent available, each Subadviser’s costs and profitability in providing services to a Fund. The Board noted that each Subadviser’s costs and profitability generally are less significant to the Board’s evaluation of the fee rates and expenses paid by a Fund than Eagle’s advisory fee rate and profitability and the Fund’s overall expense ratios. The Board noted that Eagle’s profits on the services it provided to the Funds are reasonable in light of Eagle’s costs in providing services to each Fund and that Eagle manages each Fund’s assets and provides a comprehensive compliance program for each Fund.
The Board considered that the Funds’ management fee rate structures provide for breakpoints, which is a reduction of the applicable fee rate as assets increase. The Board also considered that each Fund may benefit from economies of scale, and shareholders may realize such economies of scale, through (1) reduced advisory fees achieved when a Fund’s asset size reaches breakpoints in the fee schedules instituted by Eagle; (2) increased services to a Fund; or (3) allocation of fixed fund expenses over a large asset size.
Benefits | In evaluating compensation, the Board considered other benefits that may be realized by Eagle, each Subadviser and their respective affiliates from their relationship with the Funds. In this connection, the Board noted, among other things, that Eagle is responsible for serving as administrator for the Funds and oversight of the Funds’ service providers and subadvisers, and receives compensation for acting in these capacities. The Board noted that Eagle and its affiliates have entered into revenue sharing and services agreements with third parties for promotion and/or shareholder services.
The Board also recognized that Eagle Fund Distributors, Inc. (“Distributor”), a subsidiary of Eagle, serves as the principal underwriter and distributor for the Funds, and as such, receives Rule 12b-1 payments from the Funds to compensate it for providing services and distribution activities. These activities could lead to growth in the Funds’ assets and the corresponding benefits of that growth, including economies of scale and greater diversification. In addition, other affiliates of Eagle have entered into agreements with the Distributor to sell fund shares and receive compensation from the Distributor.
Each Subadviser also may engage in soft dollar transactions in connection with transactions on behalf of the Fund. In this regard, the Board considered each Subadviser’s process for selecting broker-dealers and for engaging in soft dollar transactions.
Conclusions | Based on these considerations, the Board concluded with respect to the Funds that: (1) each Fund was reasonably likely to benefit from the nature, quality and extent of Eagle’s and each Subadviser’s services, as applicable to the Funds; (2) each Fund’s performance was satisfactory in light of all the factors considered by the Board; (3) the fees payable under the Agreements and profits earned by Eagle or a Subadviser were reasonable in the context of all the factors considered by the Board; and (4) the current advisory fee rate structure provides each Fund’s shareholders with reasonable benefits associated with economies of scale. Based on these conclusions and other factors, the Board determined in its business judgment to renew the Agreements and to approve the Agreements between each Fund and Eagle, and Eagle and each Subadviser.
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Additional Informational About Risk Factors
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. Additionally, while the Portfolio Manager seeks to take advantage of investment opportunities that will maximize a fund’s investment returns, there is no guarantee that such opportunities will ultimately benefit a fund. There is no assurance that the Portfolio Managers’ investment strategy will enable a fund to achieve its investment objective. 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.
Risk | Capital Appreciation | Growth & Income | International Equity | Investment Grade Bond | Large Cap Core | Mid Cap Growth | Mid Cap Stock | Small Cap Core Value | Small Cap Growth | |||||||||||||||||||||||||||
Call | X | |||||||||||||||||||||||||||||||||||
Covered call options | X | |||||||||||||||||||||||||||||||||||
Credit | X | X | X | |||||||||||||||||||||||||||||||||
Derivatives | X | |||||||||||||||||||||||||||||||||||
Emerging markets | X | |||||||||||||||||||||||||||||||||||
Focused holdings | X | X | ||||||||||||||||||||||||||||||||||
Foreign securities | X | X | ||||||||||||||||||||||||||||||||||
Government sponsored enterprises | X | X | ||||||||||||||||||||||||||||||||||
Growth stocks | X | X | X | X | X | X | X | X | ||||||||||||||||||||||||||||
High-yield securities | X | X | ||||||||||||||||||||||||||||||||||
Inflation | X | |||||||||||||||||||||||||||||||||||
Interest rates | X | X | ||||||||||||||||||||||||||||||||||
Issuer and market | X | |||||||||||||||||||||||||||||||||||
Liquidity | X | X | ||||||||||||||||||||||||||||||||||
Market timing activities | X | X | X | X | ||||||||||||||||||||||||||||||||
Mortgage- and asset-backed securities | X | |||||||||||||||||||||||||||||||||||
Other investment companies and ETFs | X | X | X | |||||||||||||||||||||||||||||||||
Portfolio turnover | X | X | X | |||||||||||||||||||||||||||||||||
Precious metal-related instruments | X | |||||||||||||||||||||||||||||||||||
Sectors | X | X | X | |||||||||||||||||||||||||||||||||
Small- and mid-cap companies | X | X | X | X | X | X | X | |||||||||||||||||||||||||||||
Stock market | X | X | X | X | X | X | X | X | ||||||||||||||||||||||||||||
Value stocks | X | X | X | X |
Call | Call risk is the possibility that, as interest rates decline to a level that is significantly lower than the rate assigned to the fixed income security, the security may be called (redeemed) prior to maturity. A fund would lose the benefit of holding a fixed-income security that is paying a rate above the current market rate and would likely have to reinvest the proceeds in other fixed income securities that have lower yields.
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.
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Derivatives | A fund may use derivatives such as futures contracts, forward foreign currency 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 net asset value (“NAV”) and total return.
Foreign securities | Investments in foreign securities involve greater risks than investing in domestic securities. As a result, a 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. Custodial and/or settlement systems in foreign markets may not be fully developed and the laws of certain countries may limit the ability to recover assets if a foreign bank or depository or their agents goes bankrupt.
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: (1) supported by the full faith and credit of the U.S. Treasury, such as those of the Government National Mortgage Association; (2) supported by the right of the issuer to borrow from the U.S. Treasury, such as those of the Federal National Mortgage Association; (3) 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 (4) 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.
Inflation | Inflation risk is the risk that the market value of securities will decrease as higher inflation shrinks the purchasing power of any affected currencies.
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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.
Issuer and market | Issuer and market risk is the risk that the prices of, and the income generated by, securities held by the fund may decline in response to certain events, such as general economic and market conditions, regional or global economic instability, interest rate fluctuations, and those events directly involving the issuers.
Liquidity | Liquidity risk is the possibility that the fund might be unable to sell a security promptly and at an acceptable price, which could have the effect of decreasing the overall level of the fund’s liquidity. Market developments may cause the fund’s investments to become less liquid and subject to erratic price movements. The fund could lose money if it cannot sell a security at the time and price that would be most beneficial to the fund.
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 the manager and transfer agent of the funds monitor trading in each fund, there is no guarantee that they can detect all market timing activities.
Mortgage- and asset-backed securities | Mortgage- and asset-backed security risk, which is possible in an unstable or depressed housing market, arises from the potential for
mortgage failure or premature repayment of principal. The reduced value of the fund’s securities and the potential loss of principal as a result of mortgagee’s failure to repay would have a negative impact on the fund. Premature repayment of principal would make it difficult for the fund to reinvest the prepaid principal at a time when interest rates on new mortgages are declining, thereby reducing the fund’s income.
Other investment companies and ETFs | Investments in the securities of other investment companies and exchange-traded funds (“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.
Precious metal-related instruments | Precious metal-related instruments can fluctuate due to monetary and political developments such as economic cycles, the devaluation of currency, changes in inflation or expectations about inflation in various countries, interest rates, metal sales by governments or
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Principal Risks
other entities, government regulation including the possibility that the U.S. government could restrict or prohibit the ownership of gold, and resource availability and demand. Changes in the political climate for major precious metal producers such as China, Australia, South Africa, Russia, the United States, Peru and Canada may have a direct impact on worldwide precious metal prices.
Based on historical experience, during periods of economic or fiscal instability precious metal-related instruments may be subject to extreme price fluctuations, reflecting the high volatility of precious metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies.
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-and mid cap companies | Investments in small- and mid-cap companies generally involve greater risks than
investing in large-capitalization companies. Small- and 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, small- and mid-cap companies may have less market liquidity than 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.
2011 Federal Income Tax Notice
UNAUDITED |
For the fiscal year ended October 31, 2011 certain dividends paid by the funds may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003, and as extended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. For each applicable fund, the table below designates the maximum amount of qualified dividend income, which is 100% of what was distributed. In addition, the table designates amounts characterized as long-term capital gains which are also subject to the 15% tax rate. The information and distributions reported herein may differ from the information and distributions taxable to the shareholders for the calendar year ending December 31, 2011. All dividends paid by the Funds from net investment income are deemed to be ordinary income for federal income tax purposes. Complete information
will be computed and reported in conjunction with your 2011 Form 1099-DIV.
Qualified dividend income | Long-term capital gains | |||||||
Capital Appreciation Fund | $— | $— | ||||||
Growth & Income Fund | 4,261,143 | — | ||||||
International Equity Fund | 1,589,549 | — | ||||||
Investment Grade Bond Fund | — | — | ||||||
Large Cap Core Fund | 816,734 | — | ||||||
Mid Cap Growth Fund | — | — | ||||||
Mid Cap Stock Fund | — | — | ||||||
Small Cap Core Value Fund | 914,069 | 4,780,420 | ||||||
Small Cap Growth Fund | — | — |
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Name, birth year, position, term of office(a) and length of time served | Principal occupation(s) during past five years | Number of funds overseen in fund complex | Directorships of other public companies | |||
Interested Trustee (b) | ||||||
Richard K. Riess (1949) Trustee since 1985; Chairman of the Board of Trustees since 2007 | Executive Vice President and Managing Director for Asset Management of RJF since 1998; Chief Executive Officer of Eagle since 1996 | 9 | N/A | |||
Independent Trustees | ||||||
C. Andrew Graham (1940) Trustee since 1985 | First Financial Advisors, LTD & Graham Financial Partners, LLC (financial planning, insurance and investment services) since 1999 | 9 | N/A | |||
Keith B. Jarrett, PhD (1948) Trustee since 2005 | Founder, Rockport Funding, LLC (private equity), and Ajax Partners (investment partnership) since 2003; Director, Bankserv, Inc. (e-payments) since 1998; Director, Pertrac Strategic Financial Solutions (hedge fund software) since 2005 | 9 | N/A | |||
Lincoln Kinnicutt (1944)(c) Trustee since 2006 | Retired since 2002; Managing Director, Goldman Sachs 1997-2002 | 8 | N/A | |||
William J. Meurer (1943) Trustee since 2003 | Private investor and financial consultant since 2000 | 9 | Sykes Enterprises, Inc.(d); Walter Investment Management Corporation | |||
James L. Pappas (1943) Trustee since 1989; Lead Independent Trustee since 2003 | Private investor; Lykes Professor of Banking and Finance at University of South Florida 1986-2006; President, Graduate School of Banking, University of Wisconsin 1995-2005 | 9 | N/A | |||
Deborah L. Talbot, PhD (1950) Trustee since 2002 | Independent Consultant; Director, ethiKids, Inc. (child development) since 2009-2010; Founder and Board Member, Creative Tampa Bay (community networking) since 2003; Deans’ Advisory Board, College of Arts and Sciences, University of Memphis since 2002; Board Member, Hillsborough Arts, Inc. (501c3 group supporting the arts) since 2009 | 9 | N/A |
Officers (e) | ||||||
Richard J. Rossi (1956) President since March 2010 | President and Co-Chief Operating Officer of Eagle since 2009 and 2007, respectively; Executive Vice President Eagle 2000-2009; President and Director of EFD 2005-2011; Chief Executive Officer and Director of EFD since 2011 | |||||
Susan L. Walzer (1967) Principal Executive Officer since May 2011 | Vice President of Fund Administration since May 2011; Chief Compliance Officer of Eagle Family of Funds and Eagle Fund Services (‘EFS”)(f) 2007-2011; Director of Compliance for Eagle 2005-2007 | |||||
Carolyn K. Gill (1978) Principal Financial Officer and Treasurer since May 2011 | Manager of Fund Accounting and Fund Reporting for Eagle since 2005 and 2010, respectively | |||||
Daniel R. Dzibinski (1974) Chief Compliance Officer and Secretary since May 2011 | Manager of Fund Compliance for Eagle since May 2011; Director of Compliance for Eagle 2007-2011 |
(a) Trustees serve for life or until they are removed, resign or retire. The Board has adopted a Board Governance Policy that requires Independent Trustees to retire no later than at the end of the meeting which occurs immediately after his or her 72nd birthday. (b) Mr. Riess is an “interested” person of the Trust as that term is defined by the 1940 Act. Mr. Riess is affiliated with EFD, Eagle and RJF. (c) Mr. Kinnicutt is not a Trustee of the Eagle Capital Appreciation Fund. (d) Sykes Enterprises, Inc. is a technical support company.
(e) Officers each serve one year terms. (f) Prior to September 13, 2010, EFS served as the Funds’ transfer agent.
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Rev. 6-13-2011
FACTS | WHAT DOES EAGLE FAMILY OF FUNDS DO WITH YOUR PERSONAL INFORMATION? | |||||
Why? |
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
| |||||
What? |
The types of personal information we collect and share depend on the product or service you have with us. This information can include: | |||||
n Social security number | n Account Balances | n Transaction History | ||||
n Assets
| n Account Transactions
| |||||
How? |
All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons Eagle Family of Funds chooses to share; and whether you can limit this sharing.
|
Reasons we can share your personal information | Does Eagle Family of Funds share? | Can you limit this sharing? | ||
For our everyday business purposes— such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus
| Yes | No | ||
For our marketing purposes— to offer our products and services to you
| No | We Don’t Share | ||
For joint marketing with other financial companies
| No | We Don’t Share | ||
For our affiliates’ everyday business purposes— information about your transactions and experiences
| Yes | No | ||
For our affiliates’ everyday business purposes— information about your creditworthiness
| No | We Don’t Share | ||
For our-affiliates to market to you
| No | We Don’t Share | ||
For non-affiliates to market to you
| No | We Don’t Share | ||
Questions?
| Call 800-421-4184 or go to eagleasset.com |
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Page 2 |
Who we are | ||||
Who is providing this notice? | Eagle Asset Management, Inc., Eagle Fund Services, Inc. and Eagle Family of Funds (collectively, “Eagle Family of Funds”) | |||
| ||||
What we do | ||||
How does Eagle Family of Funds protect my personal information? |
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
| |||
How does Eagle Fund Services collect my personal information? |
We collect your personal information, for example, when you: | |||
n open an account | n deposit money | |||
n direct us to buy securities | n direct us to sell your securities | |||
n make a wire transfer | ||||
We also collect your personal information from others, such as affiliates, or other companies.
| ||||
Why can’t I limit all sharing? |
Federal law gives you the right to limit only | |||
n sharing for affiliates’ everyday business purposes—information about your creditworthiness | ||||
n affiliates from using your information to market to you | ||||
n sharing for non-affiliates to market to you | ||||
State laws and individual companies may give you additional rights to limit sharing.
| ||||
What happens when I limit sharing for an account I hold jointly with someone else? |
Your choices will apply to everyone on your account—unless you tell us otherwise. | |||
Definitions | ||||
Affiliates |
Companies related by common ownership or control. They can be financial and non-financial companies. | |||
n Raymond James & Associates, Inc., Raymond James Financial Services, Inc., Eagle Asset Management, Inc., Eagle Fund Distributors, Inc., and Eagle Fund Services, Inc.
| ||||
Non-affiliates |
Companies not related by common ownership or control. They can be financial and non-financial companies. | |||
n Broker-dealers for business related matters.
| ||||
Joint marketing |
A formal agreement between non-affiliated financial companies that together market financial products or services to you. | |||
n N/A
| ||||
Other important information | ||||
#
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eDelivery is the most convenient, economical and
environmentally-conscious way to receive information about your fund.
To enroll, please visit
eagleasset.com/eDelivery
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, 2010, 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.
727.567.8143 | 800.421.4184
Eagle Fund Distributors, Inc., Member FINRA | Not FDIC Insured | May Lose Value | No Bank Guarantee
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Item 2. Code of Ethics
As of the end of the fiscal period October 31, 2011, Eagle Capital Appreciation Fund (the “Trust”) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to the Principal Executive Officer and Principal Financial Officer. The Trust has not made any amendments to its code of ethics during the covered period. The Trust has not granted any waivers from any provisions of the code of ethics during the covered period. A copy of this code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Trust’s Board of Trustees (“Board”) has determined that William J. Meurer is an audit committee financial expert, as defined in Item 3 of Form N-CSR, serving on its audit committee. Mr. Meurer is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services 1
(a) | Audit Fees |
The aggregate fees billed by the Trust’s independent public accountants, PricewaterhouseCoopers LLP (“PwC”) for professional services rendered in connection with the audit of the Trust’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $29,000 for the fiscal period ended October 31, 2010 and $29,000 for the fiscal period ended October 31, 2011.
(b) | Audit-Related Fees |
There were no aggregate fees PwC billed to the Trust for assurance and other services which are reasonably related to the performance of the Trust’s audit and are not reported under Item 4(a) for the fiscal periods ended October 31, 2010 and October 31, 2011. The aggregate fees PwC billed to the Trust’s investment adviser and any entity controlling, controlled by, or under common control with the Trust’s investment adviser for assurance and other services directly related to the operations and financial reporting of the Trust were $0.00 for the fiscal period ended October 31, 2010 and $0.00 for the fiscal period ended October 31, 2011.
(c) | Tax Fees |
The aggregate tax fees PwC billed to the Trust for tax compliance, tax advice, and tax planning services were $5,000 for the fiscal period ended October 31, 2010 and $5,000 for the fiscal period ended October 31, 2011. There were no aggregate tax fees PwC billed to the Trust’s investment adviser and any entity controlling, controlled by, or under common control with the Trust’s investment adviser for services directly related to the operations and financial reporting of the Trust for the fiscal periods ended October 31, 2010 and October 31, 2011.
1 | All accountant fees and services amounts are rounded to the nearest whole thousand. |
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(d) All Other Fees
For the fiscal periods ended October 31, 2010 and October 31, 2011 the Trust paid PwC no other fees. There were no aggregate fees PwC billed to the Trust’s investment adviser and any entity controlling, controlled by, or under common control with the Trust’s investment adviser for any other services directly related to the operations and financial reporting of the Trust for the fiscal periods ended October 31, 2010 and October 31, 2011.
(e) The Trust’s Audit Committee Charter provides that the Audit Committee (comprised of the Independent Trustees of the Trust) is responsible for pre-approval of all auditing services performed for the Trust. The Audit Committee reports to the Board regarding its approval of the engagement of the auditor and the proposed fees for the engagement, and the majority of the Board (including the members of the Board who are Independent Trustees) must approve the auditor at an in-person meeting. The Audit Committee also is responsible for pre-approval (subject to the de minimus exception for non-audit services described in the Securities Exchange Act of 1934, as amended, and applicable rule thereunder and not expecting to exceed $5,000) of all non-auditing services performed for the Trust or for any service affiliate of the Trust. The Trust’s Audit Committee Charter also permits a designated member of the Audit Committee to pre-approve, between meetings, one or more non-audit service projects, subject to ratification by the Audit Committee at the next meeting of the Audit Committee. The Trust’s Audit Committee pre-approved all fees described above which PwC billed to the Trust.
(f) Less than 50% of the hours billed by PwC for auditing services to the Trust for the fiscal period ended October 31, 2011, were for work performed by persons other than full-time, permanent employees of PwC.
(g) There were no aggregate non-audit fees billed by PwC to the Trust and to the Trust’s investment adviser and any entity controlling, controlled by, or under common control with the Trust’s investment adviser for the fiscal periods ended October 31, 2010 and October 31, 2011.
(h) The Trust’s Audit Committee has considered the non-audit services provided to the Trust and the Trust’s investment adviser and any entity controlling, controlled by, or under common control with the Trust’s investment adviser as described above and determined that these services do not compromise PwC’s independence.
Item 5. Audit Committee of Listed Registrants
Not applicable to the Trust.
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 Trust.
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Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable to the Trust.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable to the Trust.
Item 10. Submission of Matters to a Vote of Security Holders
There have been no material changes to the Trust’s Nominating Committee Charter, which sets forth procedures by which shareholders may recommend nominees to the Board, 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 Act), the Principal Executive Officer and Principal Financial Officer of the Trust have concluded that such disclosure controls and procedures are effective as of December 19, 2011. |
(b) | There was no change in the internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) of the Trust that occurred during the second fiscal quarter of the 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) Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as Exhibit 99.CODEETH.
(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 Trust.
(b) The certification 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 Trust has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
EAGLE CAPITAL APPRECIATION FUND | ||||
Date: December 19, 2011 | /s/ Susan L. Walzer | |||
Susan L. Walzer | ||||
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 Trust and in the capacities and on the dates indicated.
EAGLE CAPITAL APPRECIATION FUND | ||||
Date: December 19, 2011 | /s/ Susan L. Walzer | |||
Susan L. Walzer | ||||
Principal Executive Officer |
Date: December 19, 2011 | /s/ Carolyn Gill | |||
Carolyn Gill | ||||
Principal Financial Officer |