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 811-5349
Goldman Sachs Trust
(Exact name of registrant as specified in charter)
71 South Wacker Drive, Suite 500, Chicago, Illinois 60606
(Address of principal executive offices) (Zip code)
Peter V. Bonanno | Copies to: | |
Goldman, Sachs & Co. | Jeffrey A. Dalke, Esq. | |
One New York Plaza | Drinker Biddle & Reath LLP | |
New York, New York 10004 | One Logan Square | |
18th and Cherry Streets | ||
Philadelphia, PA 19103 | ||
(Name and address of agents for service) |
Registrant’s telephone number, including area code: (312) 655-4400
Date of fiscal year end: August 31
Date of reporting period: February 28, 2006
ITEM 1. | REPORTS TO STOCKHOLDERS. | |
The Semi–Annual Report to Stockholders is filed herewith. |
GROWTH EQUITY FUNDS | Semiannual Report February 28, 2006 |
Long-term capital growth potential from a diversified portfolio of equity investments. | |||
Asset Management |
Goldman Sachs Growth Equity Funds
n GOLDMAN SACHS CAPITAL GROWTH FUND | |
n GOLDMAN SACHS STRATEGIC GROWTH FUND | |
n GOLDMAN SACHS CONCENTRATED GROWTH FUND | |
n GOLDMAN SACHS GROWTH OPPORTUNITIES FUND | |
n GOLDMAN SACHS SMALL/ MID CAP GROWTH FUND | |
The Capital Growth Fund invests primarily in large-capitalization U.S. equity investments and is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. |
The Strategic Growth Fund invests primarily in large-capitalization U.S. equity investments and is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions.
The Concentrated Growth Fund invests primarily in U.S. equity investments and is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. The Fund may invest in securities of any capitalization, including mid-cap and small-cap companies, which involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements.
The Concentrated Growth Fund is “non-diversified” under the Investment Company Act of 1940 and may invest a large percentage of its assets in fewer issuers than “diversified” mutual funds. Because of the smaller number of stocks generally held in the Fund’s portfolio, the Fund may be subject to greater risks than a more diversified fund. A change in the value of any single holding may affect the overall value of the portfolio more than it would affect a diversified fund that holds more investments.
The Growth Opportunities Fund invests in U.S. equity investments with a primary focus on mid-cap companies. The Fund is subject to market risk so that the value of the securities in which it invests may go up or down in response to the prospects of individual companies, particular industry sectors and/or general economic conditions. The securities of mid-capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements.
The Goldman Sachs Small/Mid Cap Growth Fund invests in equity investments with a primary focus on small- and mid-cap companies. The securities of small- and mid-capitalization companies involve greater risks than those associated with larger, more established companies and may be subject to more abrupt or erratic price movements.
NOT FDIC-INSURED | May Lose Value | No Bank Guarantee | ||
What Differentiates Goldman Sachs’
Growth Investment Process?
For over 25 years, the Goldman Sachs Growth Team has consistently applied a three-step investment process based on our belief that wealth is created through the long-term ownership of growing businesses.
Make decisions as long-term business owners rather than as stock traders Perform in-depth, fundamental research Focus on long-term structural and competitive advantages | Result Performance driven by the compounding growth of businesses over time — not short-term market movements Long-term participation in growing businesses — less reliance on macroeconomic predictions, market timing, sector rotation or momentum |
Identify high quality growth businesses. Some required investment criteria include: n Established brand names n Dominant market shares n Pricing power n Recurring revenue streams n Free cash flow n Long product life cycles n Favorable long-term growth prospects n Excellent management | Result Investment in businesses that we believe are strategically positioned for consistent long-term growth |
n Perform rigorous valuation analysis of every potential investment n Use valuation tools and analytics to ensure that the high quality business franchises we have identified also represent sound investments | Result Good investment decisions based on solid understanding of what each business is worth Attractive buying opportunities as the stock prices of high quality growth businesses fluctuate over time |
Capital Growth Fund
Dear Shareholder,
This report provides an overview on the performance of the Goldman Sachs Capital Growth Fund during the six-month reporting period that ended February 28, 2006.
Performance Review
Over the six-month period that ended February 28, 2006, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns, without sales charges, of 6.35%, 5.90%, 5.97%, 6.57% and 6.29%, respectively. These returns compare to the 5.10% cumulative total returns of the Fund’s benchmark, the Russell 1000 Growth Index (with dividends reinvested), over the same time period. | |
The Fund outperformed its benchmark during the six-month period. This was largely the result of stock selection in the Energy sector and strength in the Producer Goods & Services and Finance sectors. Conversely, weakness in the Fund was due, in part, to select Health Care and Consumer Discretionary holdings. | |
During the six-month period, the Energy sector was a significant contributor to performance. Examples of strong Fund performers included Schlumberger Ltd., Baker Hughes, Inc., and Suncor Energy, Inc. Schlumberger declared a 2-for-1 stock split and increased its dividend by nearly 20% during the period. In addition to this shareholder-friendly action, the company reported full-year earnings results that surpassed consensus expectations. Similarly, Baker Hughes benefited from the industry’s increased efforts to find hydrocarbons, as well as several analyst upgrades. Oil sands company Suncor Energy finished 2005 strongly, as output increased and its profits doubled during the fourth quarter. Oil sands companies are characterized as non-conventional oil companies since they primarily mine tar sands to obtain oil versus conventional oil companies that use a traditional well-based method. Until recently, removing oil from tar sands was not believed to be a profitable venture, but we believe that has changed over the past few years with the development of lower-cost extraction methods, combined with higher oil prices. In the beginning of 2006, the company’s output was cut in half by a fire, but it recovered quickly. | |
Toward the middle of February 2006, Financial Services company, The Charles Schwab Corp. rallied as assets under management increased 17% over the past year to $1.2 trillion — a record for the firm. In addition to the assets under management, which drive the bulk of its revenue, Schwab’s trading business grew 62% over the past year. While an increase in the daily average revenue trades is a net positive, we are more heartened by the growth in the asset base, which serves as a strong recurring revenue stream for the company. | |
Freddie Mac rallied during the period as it announced a $2 billion stock buyback plan. We believe this indicates that Freddie is focused on strengthening its business. Freddie Mac currently holds an additional $4.8 billion in excess capital above the imposed capital surcharge. |
While Amgen, Inc. announced a 19% rise in fourth quarter earnings over the previous year, the results fell just short of consensus estimates and the stock sold off toward the end of January 2006. Amgen’s core franchise, in which it has dominant market share, is a drug that treats anemia caused by complications of both kidney disease and chemotherapy. A lingering competitive threat in the chemotherapy market has been Roche’s CERA drug. The Food and Drug Administration recently requested that Roche delay its drug launch for another two years so testing can be conducted to address possible safety concerns. There have been lingering concerns that CERA represents a threat to Amgen’s products. | |
Towards the end of 2005, Stryker Corp.’s quarterly earnings report was disappointing, driving its stock down. An analyst downgrade also contributed to the weakness, as did concerns about pricing pressure from hospitals in Stryker’s orthopedic implant business. While this weighed on its stock, we believe the company is diversified and well equipped to produce strong growth in the current environment. In addition to orthopedic implants, which represent approximately 60% of Stryker’s revenues, its business is diversified by its MedSurg Products division, which represents about one third of sales and includes operating room equipment, endoscopy, medical beds, and stretchers. | |
Cendant Corp. announced plans to break up the company into four parts and downwardly revised its earnings guidance for both the fourth quarter of 2005 and 2006, citing weakness in its travel area. Its stock fell sharply on the news. In terms of the restructuring, we think that it is to Cendant’s advantage to break up the company, as we believe that the conglomerate strategy has been a factor in Cendant’s lagging stock price. |
Portfolio Composition
The Fund invests primarily in large-capitalization U.S. equity investments. Since the Fund’s inception, we have focused on several key investment criteria that we believe can drive a company’s growth over the long term. These characteristics are: 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. We strive to purchase these companies at reasonable valuations in order to capture the full benefits of their growth. |
Portfolio Highlights
During the reporting period, there were a number of holdings that enhanced results, including the following: | |
n | The McGraw-Hill Cos., Inc. and Moody’s Corp. — The Fund’s ratings agencies, McGraw-Hill, which owns Standard & Poor’s (S&P), and Moody’s performed well during the period. These businesses meet our investment criteria as they operate in an industry environment that can be characterized as quasi-monopolistic or a “partnership-monopoly.” This is because most issuers tend to have at least two ratings, one from each agency. As a result, S&P and Moody’s rate approximately 90% of the debt issuance in the U.S. We believe their growth is supported by favorable secular trends such as the globalization of capitalism, deregulation and financial innovation. |
n | First Data Corp. — First Data’s shares rose as the company announced that it would be spinning off its Western Union business. This is a strategic move that we believe will allow the company to shift its focus towards the credit and debit card- processing business, which has had lackluster performance. First Data’s stock hit a 52-week high on the heels of this announcement. We believe that the decision to spin off Western Union is a good opportunity for First Data to turn around its card and merchant divisions. |
n | QUALCOMM, Inc. — Shares of QUALCOMM rose as a result of an increase in earnings. During the company’s fiscal first quarter, earnings were driven by strong sales of both low-cost cell phones in emerging markets, and high-end handsets in developed nations, both of which use the company’s CDMA (code division multiple access) technology. |
We thank you for your investment and look forward to your continued confidence. |
Goldman Sachs Growth Equity Investment Team
New York, March 17, 2006
Capital Growth Fund
PERFORMANCE REVIEW |
Fund Total Return | Russell 1000 | |||||||||
September 1, 2005–February 28, 2006 | (based on NAV)1 | Growth Index2 | ||||||||
Class A | 6.35 | % | 5.10 | % | ||||||
Class B | 5.90 | 5.10 | ||||||||
Class C | 5.97 | 5.10 | ||||||||
Institutional | 6.57 | 5.10 | ||||||||
Service | 6.29 | 5.10 | ||||||||
1 | The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges. |
2 | The Russell 1000 Growth Index is an unmanaged index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged Index. |
STANDARDIZED TOTAL RETURNS3 |
For the period ended 12/31/05 | One Year | Five Years | Ten Years | Since Inception | Inception Date | |||||||||||||||
Class A | -3.28 | % | -3.72 | % | 7.88 | % | 10.31 | % | 4/20/90 | |||||||||||
Class B | -3.40 | -3.73 | n/a | 7.15 | 5/1/96 | |||||||||||||||
Class C | 0.60 | -3.35 | n/a | 3.94 | 8/15/97 | |||||||||||||||
Institutional | 2.78 | -2.23 | n/a | 5.11 | 8/15/97 | |||||||||||||||
Service | 2.25 | -2.71 | 8.40 | 4 | 10.64 | 4 | 4/20/90 | |||||||||||||
3 | The Standardized Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares, the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional and Service Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. |
4 | Performance data for Service Shares prior to August 15, 1997 (commencement of operations) is that of Class A Shares (excluding the impact of front-end sales charges applicable to Class A Shares since Service Shares are not subject to any sales charges). Performance of Class A Shares of the Capital Growth Fund reflects the expenses applicable to the Fund’s Class A Shares. The fees applicable to Service Shares are different from those applicable to Class A Shares which impact performance ratings and rankings for a class of shares. |
The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.gs.com/funds to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
TOP 10 HOLDINGS AS OF 2/28/065 |
Holding | % of Net Assets | Line of Business | ||||||
Freddie Mac | 4.6 | % | Specialty Finance | |||||
Microsoft Corp. | 4.4 | Computer Software | ||||||
Schlumberger Ltd. | 3.4 | Oil Well Services & Equipment | ||||||
First Data Corp. | 3.3 | Computer Services | ||||||
The McGraw-Hill Cos., Inc. | 3.2 | Commercial Services | ||||||
QUALCOMM, Inc. | 3.0 | Semiconductors | ||||||
PepsiCo, Inc. | 2.7 | Beverages | ||||||
Cisco Systems, Inc. | 2.6 | Networking/Telecommunications Equipment | ||||||
Suncor Energy, Inc. | 2.6 | Oil & Gas | ||||||
Lowe’s Companies, Inc. | 2.5 | Retailing | ||||||
5 | The top 10 holdings may not be representative of the Fund’s future investments. |
SECTOR ALLOCATION AS OF 2/28/066 |
6 | The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Short-term investments include repurchase agreements and securities lending collateral. |
Strategic Growth Fund
Dear Shareholder,
This report provides an overview on the performance of the Goldman Sachs Strategic Growth Fund during the six-month reporting period that ended February 28, 2006.
Performance Review
Over the six-month period that ended February 28, 2006, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns, without sales charges, of 6.06%, 5.75%, 5.74%, 6.36% and 6.27%, respectively. These returns compare to the 5.10% cumulative total return of the Fund’s benchmark, the Russell 1000 Growth Index (with dividends reinvested), over the same time period. | |
The Fund generated positive returns and outperformed its benchmark over the period. During the six-month period, Fund holdings in the Energy sector, including Schlumberger Ltd. and Suncor Energy, Inc. contributed to performance. Schlumberger declared a 2-for-1 stock split and increased its dividend by nearly 20% during the period. In addition to this shareholder-friendly action, the company reported full-year earnings results that surpassed consensus expectations. Oil sands company Suncor Energy finished 2005 strongly, as output increased and its profits doubled during the fourth quarter. Oil sands companies are characterized as non-conventional oil companies since they primarily mine tar sands to obtain oil versus conventional oil companies that use a traditional well-based method. Until recently, removing oil from tar sands was not believed to be a profitable venture, but we believe that has changed over the past few years with the development of lower-cost extraction methods, combined with higher oil prices. In the beginning of 2006, the company’s output was cut in half by a fire, but it recovered quickly. | |
Also contributing to returns were wireless tower companies Crown Castle International Corp. and American Tower Corp. Crown Castle was up on the heels of an analyst upgrade. American Tower finalized its acquisition of SpectraSite and reported higher revenues. Although the company reported a quarterly profit loss, this was due to the non-cash depreciation expense inherent in owning and acquiring wireless towers. This benefits the company by reducing its current taxes and building in tremendous operating leverage for future growth, as capital expenditures are largely fixed. In addition, the company recently paid down debt—a result of the free cash flow that American Tower regularly generates on its balance sheet. The intrinsic value of these businesses has continued to grow as demand for wireless communication increases. Expanding services include streaming media content delivered at broadband speeds. | |
Cendant Corp. announced plans to break up the company into four parts and downwardly revised its earnings guidance for the fourth quarter of 2005 and 2006, citing weakness in its travel area. Its stock fell sharply on the news. In terms of the restructuring, we think that it is to Cendant’s advantage to break up the company, as we believe that the conglomerate strategy has been a factor in Cendant’s lagging stock price. While we believe that Cendant’s spin-offs have the potential to grow, we took the more conservative approach and exited the position. In addition, the ensuing mid- to small-cap companies from Cendant’s breakup would not be appropriate for Strategic Growth’s large-cap growth focus. |
Portfolio Composition
The Fund invests primarily in large-cap growth stocks. More specifically, we seek businesses with dominant market share, established brand name, pricing power, recurring revenue stream and free cash flow. Additionally, we seek companies with high returns on invested capital, predictable growth, sustainable growth, long product life cycle, enduring competitive advantage, favorable demographic trends and excellent management. The Fund is more selective and focused than many mutual funds and there are typically 50 to 70 holdings in the portfolio. |
Portfolio Highlights
During the reporting period, there were a number of holdings that enhanced results, including the following: | |
n | QUALCOMM, Inc. — Shares of QUALCOMM rose as a result of an increase in earnings. During the company’s fiscal first quarter, earnings were driven by strong sales of both low-cost cell phones in emerging markets, and high-end handsets in developed nations, both of which use the company’s CDMA (code division multiple access) technology. |
n | The Charles Schwab Corp. — Toward the middle of February 2006, Financial Services company Charles Schwab rallied as assets under management increased 17% over the past year to $1.2 trillion— a record for the firm. In addition to the assets under management, which drives the bulk of its revenue, Schwab’s trading business grew 62% over the past year. While an increase in the daily average revenue trades is a net positive, we are more heartened by the growth in the asset base, which serves as a strong recurring revenue stream for the company. |
n | First Data Corp. — First Data’s shares rose as the company announced that it would be spinning off its Western Union business. This is a strategic move that we believe will allow the company to shift its focus towards the credit and debit card- processing business, which has had lackluster performance. First Data’s stock hit a 52-week high on the heels of this announcement. We believe that the decision to spin off Western Union is a good opportunity for First Data to turn around its card and merchant divisions. |
We thank you for your investment and look forward to your continued confidence. | |
Goldman Sachs Growth Team | |
New York, March 17, 2006 |
Strategic Growth Fund
PERFORMANCE REVIEW |
Fund Total Return | Russell 1000 | |||||||||
September 1, 2005–February 28, 2006 | (based on NAV)1 | Growth Index2 | ||||||||
Class A | 6.06 | % | 5.10 | % | ||||||
Class B | 5.75 | 5.10 | ||||||||
Class C | 5.74 | 5.10 | ||||||||
Institutional | 6.36 | 5.10 | ||||||||
Service | 6.27 | 5.10 | ||||||||
1 | The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges. |
2 | The Russell 1000 Growth Index is an unmanaged market capitalization weighted index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged Index. |
STANDARDIZED TOTAL RETURNS3 |
For the period ended 12/31/05 | One Year | Five Years | Since Inception | Inception Date | ||||||||||||
Class A | -4.06 | % | -5.22 | % | -2.42 | % | 5/24/99 | |||||||||
Class B | -4.18 | -5.23 | -2.32 | 5/24/99 | ||||||||||||
Class C | -0.29 | -4.84 | -2.30 | 5/24/99 | ||||||||||||
Institutional | 1.87 | -3.76 | -1.20 | 5/24/99 | ||||||||||||
Service | 1.58 | -4.09 | -1.54 | 5/24/99 | ||||||||||||
3 | The Standardized Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares, the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional and Service Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. |
The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.gs.com/funds to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
TOP 10 HOLDINGS AS OF 2/28/064 |
Holding | % of Net Assets | Line of Business | ||||
Freddie Mac | 5.3 | % | Specialty Finance | |||
Schlumberger Ltd. | 4.8 | Oil Well Services & Equipment | ||||
First Data Corp. | 4.1 | Computer Services | ||||
Microsoft Corp. | 4.0 | Computer Software | ||||
The McGraw-Hill Companies, Inc. | 3.9 | Commercial Services | ||||
QUALCOMM, Inc. | 3.6 | Semiconductors | ||||
PepsiCo, Inc. | 3.0 | Beverages | ||||
Lowe’s Companies, Inc. | 3.0 | Retailing | ||||
Univision Communications, Inc. | 2.9 | Broadcasting & Cable/Satellite TV | ||||
Suncor Energy, Inc. | 2.8 | Oil & Gas | ||||
4 | The top 10 holdings may not be representative of the Fund’s future investments. |
SECTOR ALLOCATION AS OF 2/28/065 |
5 | The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Short-term investments include repurchase agreements and securities lending collateral. |
Concentrated Growth Fund
Dear Shareholder,
This report provides an overview on the performance of the Goldman Sachs Concentrated Growth Fund during the six-month reporting period that ended February 28, 2006.
Performance Review
Over the six-month period that ended February 28, 2006, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns, without sales charges, of 7.46%, 7.06%, 7.08%, 7.70% and 7.47%, respectively. These returns compare to the 5.10% cumulative total return of the Fund’s benchmark, the Russell 1000 Growth Index (with dividends reinvested), over the same time period. | |
During the reporting period, the Fund generated positive returns and outperformed its benchmark. During the six-month period, the Energy sector was a significant contributor to performance. Examples of strong Fund performers included Schlumberger Ltd., Baker Hughes, Inc., and Suncor Energy, Inc. Schlumberger declared a 2-for-1 stock split and increased its dividend by nearly 20% during the period. In addition to this shareholder-friendly action, the company reported full-year earnings results that surpassed consensus expectations. Similarly, Baker Hughes benefited from the industry’s increased efforts to find hydrocarbons, as well as several analyst upgrades. Oil sands company Suncor Energy finished 2005 strongly as output increased and its profits doubled during the fourth quarter. Oil sands companies are characterized as non-conventional oil companies since they primarily mine tar sands to obtain oil versus conventional oil companies that use a traditional well-based method. Until recently, removing oil from tar sands was not believed to be a profitable venture, but we believe that has changed over the past few years with the development of lower-cost extraction methods, combined with higher oil prices. In the beginning of 2006, the company’s output was cut in half by a fire, but it recovered quickly. | |
Within the Consumer Discretionary sector, Lowe’s Companies, Inc. aided performance as positive fiscal fourth quarter earnings were released. Sales accelerated through January 2006 as mild winter weather allowed contractors and homebuilders to continue working on projects. Strong sales boosted net income and contributed to a 37% rise in its fiscal fourth-quarter profit. | |
During the period, it was announced that Univision Communications, Inc. was considering a possible sale of the company and the stock reacted positively. We believe the 74-year-old CEO, Jerry Perenchio, is looking at a sale for estate-planning purposes. The company will soon cover the 2006 World Cup and the network will be included in the Nielsen television ratings. We particularly like the company for its dominance in the Hispanic television and radio broadcasting market as it continues to capitalize on the explosive growth of the Hispanic population in the U.S. Univision has gained ground in the coveted 18-34 age segment and higher ratings have enabled it to capture advertising dollars from competitors. | |
Cendant Corp. announced plans to break up the company into four parts and downwardly revised its earnings guidance for the fourth quarter of 2005 and 2006, citing weakness in its travel area. Its stock fell sharply on the news. In terms of the restructuring, we think that it is to Cendant’s advantage to break up the company, as we believe that the conglomerate strategy has been a factor in Cendant’s lagging stock price. |
Portfolio Composition
The Fund typically holds 30-40 high quality growth companies and tends to be more concentrated in individual holdings, industries, and sectors than the typical broadly diversified large-cap growth fund. |
Portfolio Highlights
During the reporting period, there were a number of holdings that enhanced results, including the following: | |
n | Google, Inc. — Within the Technology sector, the strong performance of Google benefited the portfolio. Google reported strong results in a “seasonally slow” third quarter as the company continued to benefit from an increasing amount of money spent on online advertising. Although a high growth company like Google is likely to have risks/concerns, we believe that these risks are reflected in current valuations and we have managed the position size accordingly. In an effort to manage the position size we held at the beginning of this year, we trimmed at $450 per share in mid-January and then again at $427 per share at the end of January. Then, on a recent dip in valuation, we took advantage of the opportunity to add back to the position. |
n | Freddie Mac — Freddie Mac rallied during the reporting period as it announced a $2 billion stock buyback plan. We believe this indicates that Freddie Mac is focused on strengthening its business. Freddie Mac currently holds an additional $4.8 billion in excess capital above the imposed capital surcharge. |
n | Harrah’s Entertainment, Inc. — During the period, Harrah’s Entertainment contributed to returns. The company announced strong third-quarter earnings results, specifically from property Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA). EBITDA is a commonly used earnings metric in the gaming industry due to the property-intensive nature of the business. In addition, Harrah’s sales growth was strong and the company continued to integrate the properties related to the Caesar’s acquisition. |
We thank you for your investment and look forward to your continued confidence. | |
Goldman Sachs Growth Team | |
New York, March 17, 2006 |
Concentrated Growth Fund
PERFORMANCE REVIEW |
Fund Total Return | Russell 1000 | |||||||||
September 1, 2005–February 28, 2006 | (based on NAV)1 | Growth Index2 | ||||||||
Class A | 7.46 | % | 5.10 | % | ||||||
Class B | 7.06 | 5.10 | ||||||||
Class C | 7.08 | 5.10 | ||||||||
Institutional | 7.70 | 5.10 | ||||||||
Service | 7.47 | 5.10 | ||||||||
1 | The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges. |
2 | The Russell 1000 Growth Index (with dividends reinvested) is an unmanaged market capitalization weighted index that measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. The Index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged Index. |
STANDARDIZED TOTAL RETURNS3 |
For the period ended 12/31/05 | One Year | Since Inception | Inception Date | |||||||||
Class A | -2.45 | % | 7.44 | % | 9/3/02 | |||||||
Class B | -2.67 | 7.70 | 9/3/02 | |||||||||
Class C | 1.36 | 8.41 | 9/3/02 | |||||||||
Institutional | 3.55 | 9.69 | 9/3/02 | |||||||||
Service | 3.12 | 9.25 | 9/3/02 | |||||||||
3 | The Standardized Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares, the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional and Service Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. |
The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.gs.com/funds to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
TOP 10 HOLDINGS AS OF 2/28/064 |
Holding | % of Net Assets | Line of Business | ||||
Freddie Mac | 7.0 | % | Specialty Finance | |||
The McGraw-Hill Companies, Inc. | 5.8 | Commercial Services | ||||
First Data Corp. | 5.5 | Computer Services | ||||
Schlumberger Ltd. | 4.8 | Oil Well Services & Equipment | ||||
Microsoft Corp. | 4.4 | Computer Software | ||||
PepsiCo, Inc. | 3.9 | Beverages | ||||
Univision Communications, Inc. | 3.8 | Broadcasting & Cable/Satellite TV | ||||
QUALCOMM, Inc. | 3.5 | Semiconductors | ||||
Harrah’s Entertainment, Inc. | 3.5 | Gaming/Lodging | ||||
The Charles Schwab Corp. | 3.2 | Financials | ||||
4 | The top 10 holdings may not be representative of the Fund’s future investments. |
SECTOR ALLOCATION AS OF 2/28/065 |
5 | The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Short-term investments include repurchase agreements. |
Growth Opportunities Fund
Dear Shareholder,
This report provides an overview on the performance of the Goldman Sachs Growth Opportunities Fund during the six-month year reporting period that ended February 28, 2006.
Performance Review
Over the six-month period that ended February 28, 2006, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns, without sales charges, of 6.59%, 6.19%, 6.19%, 6.78% and 6.50%, respectively. These returns compare to the 9.69% cumulative total return of the Fund’s benchmark, the Russell Midcap Growth Index (with dividends reinvested), over the same time period. | |
The Fund generated positive absolute returns during the reporting period, but lagged its benchmark. This was largely due to the weakness of the Fund’s holdings in the Technology and Health Care sectors. Conversely, a number of the Fund’s Energy, Media and Producer Goods & Services stocks enhanced results. | |
Several holdings in the Technology sector detracted from performance during the period, including Mercury Interactive and FLIR Systems, Inc. Shares of Mercury Interactive fell sharply after it announced the resignations of its chief executive officer, chief financial officer and general counsel, as investigations of the company’s stock option practices continued. We decided to exit our position as concerns about the Securities and Exchange Commission investigation expanded from option-related issues to other accounting issues as well. FLIR Systems, Inc. a maker of night vision equipment, pulled back after third-quarter results missed analysts’ estimates due to disappointing results in its imaging business and its European thermography division. The company also lost two contracts that were up for bid. Despite this, contract activity has been strong for FLIR this year. | |
Several of the Fund’s Media companies, notably Univision Communications, Inc. and Lamar Advertising Co., outperformed the rest of the sector. Univision Communications is considering a possible sale of the company and the stock reacted positively. We believe the 74-year-old CEO, Jerry Perenchio, is looking at a sale for estate planning purposes. The company will soon cover the 2006 World Cup and the network will be included in the Nielsen television ratings. We particularly like the company for its dominance in the Hispanic television and radio broadcasting market as it continues to capitalize on the explosive growth of the Hispanic population in the U.S. Univision has gained ground in the coveted 18-34 age segment and higher ratings have enabled it to capture advertising dollars from competitors. On the downside in Media, XM Satellite Radio Holdings, Inc. fell 16% in February as a result of increased marketing and subscriber acquisition costs. The company disclosed that 85% of fiscal fourth quarter net additions came from the retail channel. The retail channel tends to have higher subscriber acquisition costs and XM was offering hardware rebates in order to stay competitive with the publicity surrounding Sirius’ addition of Howard Stern. This was a one-time event and the company expects subscriber acquisition costs to ease. |
Within Health Care, shares of Kinetic Concepts Inc. fell after Medicare announced a 6% decrease in reimbursements for use of one of Kinetic’s products. In addition, the only potential competitor in the industry moved a step closer to Medicare reimbursement, which Kinetic already has. However, Kinetic has a pending patent litigation against this other company. We trimmed the position and eventually decided to sell out of Kinetic, as we believe the Medicare and litigation risks outweigh the potential upside, and that there are more attractive investment opportunities. Charles River Laboratories International, Inc. ended the period down after lowering its 2006 guidance. While the company’s toxicology and pre-clinical services businesses are enjoying very strong demand, its research models business has been weak and weighed on the stock price. | |
Iron Mountain, Inc. was a strong performer in the Producer Goods & Services sector. In addition, shares of W. W. Grainger, Inc., which supplies everything from motors to welding equipment, continued to rise after it reported strong profits, handily beating expectations. On top of strong earnings growth and solid cash flow, the company raised its earnings outlook for 2006. Driving the improved results was a 10% increase in sales from its nearly 600 distribution branches as its market expansion program is starting to pay dividends. |
Portfolio Composition
The Fund invests primarily in medium-sized growth companies with a market capitalization between $1 and $10 billion. Since our strategy’s inception, we have focused on several key investment criteria that we believe can drive a company’s growth over the long term. These characteristics are: 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. We strive to purchase these companies at reasonable valuations in order to capture the full benefits of their growth. |
Portfolio Highlights
While the Fund underperformed its benchmark during the reporting period, there were a number of holdings that enhanced results, including the following: | |
n | Lamar Advertising — Lamar Advertising contributed to returns during the period as the company reported that revenues grew 15% during the fourth quarter and earnings for the full year more than tripled. The company is the third-largest billboard company in the U.S. with over 150,000 advertising displays. We find the low capital expenditure nature of billboards, combined with the recurring revenue the company collects from advertisers, creates a generous amount of operating leverage within Lamar’s business model. |
n | Salesforce.com, Inc. — In Technology, Salesforce.com was up strongly and significantly contributed to returns. Salesforce.com, a leading provider of on-demand customer relationship-management services and software, continued to execute strongly, adding a record number of net subscribers during the period. |
n | Iron Mountain, Inc. — Shares of Iron Mountain, one of the market leaders in records and information management, were up on the heels of a strong earnings release, which exceeded expectations as profits nearly doubled. Strength was driven by better margins, pricing gains, and growth in free cash flow. Iron Mountain also raised guidance, citing continued improvement in the company’s fundamentals and sustained growth in its newer digital archive business segment. |
As always, we thank you for your investment and look forward to your continued confidence. |
Goldman Sachs Growth Equity Investment Team
New York, March 17, 2006
Growth Opportunities Fund
PERFORMANCE REVIEW |
Fund Total Return | Russell Midcap | |||||||||
September 1, 2005–February 28, 2006 | (based on NAV)1 | Growth Index2 | ||||||||
Class A | 6.59 | % | 9.69 | % | ||||||
Class B | 6.19 | 9.69 | ||||||||
Class C | 6.19 | 9.69 | ||||||||
Institutional | 6.78 | 9.69 | ||||||||
Service | 6.50 | 9.69 | ||||||||
1 | The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges. |
2 | The Russell Midcap Growth Index is an unmanaged market capitalization weighted index that measures the performance of those Russell Midcap companies with higher price-to-book ratios and higher forecasted growth values. The Index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged Index. |
STANDARDIZED TOTAL RETURNS3 |
For the period ended 12/31/05 | One Year | Five Years | Since Inception | Inception Date | ||||||||||||
Class A | -1.29 | % | 2.96 | % | 13.03 | % | 5/24/99 | |||||||||
Class B | -1.54 | 2.98 | 13.26 | 5/24/99 | ||||||||||||
Class C | 2.63 | 3.36 | 13.16 | 5/24/99 | ||||||||||||
Institutional | 4.84 | 4.55 | 14.44 | 5/24/99 | ||||||||||||
Service | 4.28 | 4.03 | 13.86 | 5/24/99 | ||||||||||||
3 | The Standardized Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares, the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional and Service Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. |
The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.gs.com/funds to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
TOP 10 HOLDINGS AS OF 2/28/064 |
Holding | % of Net Assets | Line of Business | ||||
Biomet, Inc. | 2.1 | % | Medical Products | |||
Weatherford International Ltd. | 2.1 | Other Energy | ||||
Lamar Advertising Co. | 2.0 | Publishing | ||||
Alliance Data Systems Corp. | 2.0 | Commercial Services | ||||
Fisher Scientific International, Inc. | 2.0 | Medical Products | ||||
Harman International Industries, Inc. | 2.0 | Audio & Visual Equipment | ||||
Rockwell Automation, Inc. | 2.0 | Manufacturing | ||||
W.W. Grainger, Inc. | 2.0 | Producer Goods | ||||
Charles River Laboratories International, Inc. | 2.0 | Medical Supplies | ||||
Williams-Sonoma, Inc. | 2.0 | Housewares | ||||
4 | The top 10 holdings may not be representative of the Fund’s future investments. |
SECTOR ALLOCATION AS OF 2/28/065 |
5 | The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Short-term investments include repurchase agreements and securities lending collateral. |
Small/Mid Cap Growth Fund
Dear Shareholder,
This report provides an overview on the performance of the Goldman Sachs Small/Mid Cap Growth Fund during the six-month reporting period that ended February 28, 2006.
Performance Review
Over six-month period that ended February 28, 2006, the Fund’s Class A, B, C, Institutional and Service Shares generated cumulative total returns, without sales charges, of 10.95%, 10.50%, 10.50%, 11.17% and 10.88%, respectively. These returns compare to the 11.24% cumulative total return of the Fund’s benchmark, the Russell 2500 Growth Index (with dividends reinvested), over the same time period. | |
The Fund generated positive returns during the reporting period, but lagged its benchmark. This was largely due to the weakness of the Fund’s holdings in the Cyclicals and Technology sectors. Conversely, a number of the Fund’s Energy and Health Care stocks enhanced results. | |
Several holdings in the Technology sector detracted from performance during the period, including Mercury Interactive and FLIR Systems, Inc. Shares of Mercury Interactive fell sharply after it announced the resignations of its chief executive officer, chief financial officer and general counsel as investigations of the company’s stock option practices continued. We decided to exit our position as concerns about the Securities and Exchange Commission investigation expanded from option-related issues to other accounting issues as well. FLIR Systems, a maker of night vision equipment, pulled back after third-quarter results missed analysts’ estimates due to disappointing results in its imaging business and its European thermography division. The company also lost two contracts that were up for bid. Despite this, contract activity has been strong for FLIR this year. | |
Almost all of the Fund’s Energy companies were up for the period and enhanced results. For example, FMC Technologies, Inc., a maker of offshore oil drilling equipment, saw its shares rise following a fourth-quarter earnings report that beat expectations and came in at the high end of its projections. The company had revenue gains in its primary energy systems, FoodTech, and its airline units. | |
Health Care company Abgenix contributed positively to performance. Shares of Abgenix, an antibody research group, rose after Amgen announced a deal to buy Abgenix. Amgen and Abgenix have been collaborating on developing two major drugs, most notably the cancer therapy drug, Panitumumab. They are also working on Denosumab, a treatment for osteoporosis and bone cancer. We subsequently sold Abgenix to capture profits. Within Health Care, shares of Kinetic Concepts Inc. fell after Medicare announced a 6% decrease in reimbursements for use of one of Kinetic’s products. In addition, the only potential competitor in the industry moved a step closer to Medicare reimbursement, which Kinetic already has. However, Kinetic has a pending patent litigation against this other company. We eliminated the position to reflect the potential threat of competition and further reimbursement changes. |
Portfolio Composition
The Fund invests, under normal circumstances, at least 80% of its net assets in a diversified portfolio of equity investments in small- and mid-sized companies with market capitalizations within the range of the Russell 2500 Growth Index at the time of investment. If the market capitalization of a company held by the Fund moves outside this range, the Fund may, but is not required to, sell the security. |
Portfolio Highlights
During the reporting period, there were a number of holdings that enhanced results, including the following: | |
n | Lamar Advertising Co. — Lamar Advertising contributed to returns during the period as the company reported that revenues grew 15% during the fourth quarter and earnings for the full year more than tripled. The company is the third-largest billboard company in the U.S. with over 150,000 advertising displays. We find that the low capital expenditure nature of billboards, combined with the recurring revenue the company collects from advertisers, creates a generous amount of operating leverage within Lamar’s business model. |
n | Fastenal Co. — Fastenal supplies customers, including manufacturers and commercial construction contractors, with 250,000 varieties of threaded fasteners and 265,000 general-purpose maintenance, repair and operations products. Fastenal has translated its unique competitive position into decades of profitable growth. The company continues to turn out new stores and take market share in a highly fragmented market. By offering more than a quarter million types of fasteners and a similar variety of maintenance, repair and operations (MRO) products, through its more than 1,700 stores, we believe Fastenal provides enhanced selection and more convenience than broad-line distributors or hardware stores. In addition, the company’s 12 distribution centers and in-house truck fleet provide a highly efficient path to market, especially for heavy fasteners, which are expensive to ship via parcel carriers. Fastenal’s unique offering is rewarded with pricing power — an important attribute given recent steel price fluctuations. |
n | Chico’s FAS, Inc. — In the Consumer Discretionary sector, Chico’s FAS was a top performer. The women’s apparel retailer posted a better-than-expected rise in same-store sales throughout the period with stores open at least a year advancing 16.4% in December, nearly twice the average prediction of 8.6%. |
We appreciate your investment and look forward to earning your continued confidence in the years to come. | |
Goldman Sachs Growth Equity Investment Team | |
New York, March 17, 2006 |
Small/Mid Cap Growth Fund
PERFORMANCE REVIEW |
Fund Total Return | Russell 2500 | |||||||||
September 1, 2005–February 28, 2006 | (based on NAV)1 | Growth Index2 | ||||||||
Class A | 10.95 | % | 11.24 | % | ||||||
Class B | 10.50 | 11.24 | ||||||||
Class C | 10.50 | 11.24 | ||||||||
Institutional | 11.17 | 11.24 | ||||||||
Service | 10.88 | 11.24 | ||||||||
1 | The net asset value (NAV) represents the net assets of the class of the Fund (ex-dividend) divided by the total number of shares of the class outstanding. The Fund’s performance reflects the reinvestment of dividends and other distributions. The Fund’s performance does not reflect the deduction of any applicable sales charges. |
2 | The Russell 2500 Growth Index measures the performance of those Russell 2500 companies with higher price-to-book ratios and higher forecasted growth values. The Index measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 16% of the total market capitalization of the Russell 3000 Index. The Index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged Index. |
STANDARDIZED TOTAL RETURNS3 |
For the period ended 12/31/05 | One Year | Since Inception | Inception Date | |||||||||
Class A | n/a | -0.20 | % | 6/30/05 | ||||||||
Class B | n/a | -0.17 | 6/30/05 | |||||||||
Class C | n/a | 3.87 | 6/30/05 | |||||||||
Institutional | n/a | 5.49 | 6/30/05 | |||||||||
Service | n/a | 5.28 | 6/30/05 | |||||||||
3 | The Standardized Total Returns are average annual total returns or cumulative total returns (only if the performance period is one year or less) as of the most recent calendar quarter-end. They assume reinvestment of all distributions at NAV. These returns reflect a maximum initial sales charge of 5.5% for Class A Shares, the assumed contingent deferred sales charge for Class B Shares (5% maximum declining to 0% after six years) and the assumed contingent deferred sales charge for Class C Shares (1% if redeemed within 12 months of purchase). Because Institutional and Service Shares do not involve a sales charge, such a charge is not applied to their Standardized Total Returns. |
The returns represent past performance. Past performance does not guarantee future results. The Fund’s investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted above. Please visit our Web site at: www.gs.com/funds to obtain the most recent month-end returns. Performance reflects expense limitations in effect. In their absence, performance would be reduced. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
TOP 10 HOLDINGS AS OF 2/28/063 |
Holding | % of Net Assets | Line of Business | ||||
PDL BioPharma Inc. | 1.3 | % | Biotechnology | |||
Amphenol Corp. | 1.2 | Networking/Telecommunications Equipment | ||||
P.F. Chang’s China Bistro, Inc. | 1.2 | Restaurants | ||||
Tessera Technologies, Inc. | 1.2 | Semi Capital | ||||
NAVTEQ | 1.2 | Computer Software | ||||
Urban Outfitters, Inc. | 1.2 | Apparel/Shoes | ||||
Covance, Inc. | 1.1 | Other Health Care | ||||
Cytyc Corp. | 1.1 | Medical Products | ||||
FormFactor, Inc. | 1.1 | Semi Capital | ||||
FLIR Systems, Inc. | 1.1 | Networking/Telecommunications Equipment | ||||
3 | The top 10 holdings may not be representative of the Fund’s future investments. |
SECTOR ALLOCATION AS OF 2/28/064 |
4 | The percentage shown for each investment category reflects the value of investments in that category as a percentage of market value. Short-term investments include repurchase agreements and securities lending collateral. |
Statement of Investments
Shares | Description | Value | ||||||||
Common Stocks – 99.2% | ||||||||||
Aerospace & Defense – 1.5% | ||||||||||
500,881 | United Technologies Corp. | $ | 29,301,538 | |||||||
Audio & Visual Equipment – 0.5% | ||||||||||
88,830 | Harman International Industries, Inc. | 9,802,391 | ||||||||
Banks – 1.6% | ||||||||||
162,900 | Golden West Financial Corp. | 11,570,787 | ||||||||
465,824 | J.P. Morgan Chase & Co. | 19,163,999 | ||||||||
30,734,786 | ||||||||||
Beverages – 5.2% | ||||||||||
368,550 | Fortune Brands, Inc. | 28,581,053 | ||||||||
874,850 | PepsiCo, Inc. | 51,712,383 | ||||||||
446,000 | The Coca-Cola Co.(a) | 18,718,620 | ||||||||
99,012,056 | ||||||||||
Biotechnology – 3.0% | ||||||||||
612,400 | Amgen, Inc.* | 46,230,076 | ||||||||
284,770 | MedImmune, Inc.* | 10,391,257 | ||||||||
56,621,333 | ||||||||||
Broadcasting & Cable/Satellite TV – 2.1% | ||||||||||
718,600 | Univision Communications, Inc.* | 24,037,170 | ||||||||
752,880 | XM Satellite Radio Holdings, Inc.* | 16,631,119 | ||||||||
40,668,289 | ||||||||||
Commercial Services – 5.7% | ||||||||||
342,150 | ARAMARK Corp. Class B | 9,737,589 | ||||||||
225,870 | Iron Mountain, Inc.* | 9,870,519 | ||||||||
429,300 | Moody’s Corp. | 28,763,100 | ||||||||
1,164,685 | The McGraw-Hill Companies., Inc. | 61,833,127 | ||||||||
110,204,335 | ||||||||||
Computer Hardware – 2.2% | ||||||||||
622,290 | Dell, Inc.* | 18,046,410 | ||||||||
1,745,600 | EMC Corp.* | 24,473,312 | ||||||||
42,519,722 | ||||||||||
Computer Services – 3.3% | ||||||||||
1,420,520 | First Data Corp. | 64,108,068 | ||||||||
Computer Software – 6.8% | ||||||||||
714,280 | Electronic Arts, Inc.* | 37,121,132 | ||||||||
3,116,000 | Microsoft Corp. | 83,820,400 | ||||||||
733,500 | Oracle Corp.* | 9,110,070 | ||||||||
130,051,602 | ||||||||||
Drugs & Medicine – 3.4% | ||||||||||
289,600 | Eli Lilly & Co. | 16,107,552 | ||||||||
549,337 | Pfizer, Inc. | 14,387,136 | ||||||||
409,500 | Schering-Plough Corp. | 7,575,750 | ||||||||
551,900 | Wyeth | 27,484,620 | ||||||||
65,555,058 | ||||||||||
Financials – 3.4% | ||||||||||
225,900 | Merrill Lynch & Co., Inc. | 17,441,739 | ||||||||
247,400 | Morgan Stanley | 14,759,884 | ||||||||
2,059,600 | The Charles Schwab Corp. | 33,386,116 | ||||||||
65,587,739 | ||||||||||
Foods – 1.9% | ||||||||||
169,174 | The Hershey Co. | 8,653,250 | ||||||||
442,260 | Wm. Wrigley Jr. Co. | 28,101,200 | ||||||||
36,754,450 | ||||||||||
Gaming/Lodging – 5.0% | ||||||||||
564,673 | Carnival Corp. | 29,165,361 | ||||||||
1,206,500 | Cendant Corp. | 20,052,030 | ||||||||
374,810 | Harrah’s Entertainment, Inc. | 26,956,335 | ||||||||
292,510 | Marriott International, Inc. | 20,007,684 | ||||||||
96,181,410 | ||||||||||
Household/Personal Care – 1.3% | ||||||||||
427,860 | The Procter & Gamble Co. | 25,641,650 | ||||||||
Insurance – 0.4% | ||||||||||
235,819 | Willis Group Holdings Ltd. | 8,121,606 | ||||||||
Internet & Online – 2.5% | ||||||||||
72,108 | Google, Inc.* | 26,147,803 | ||||||||
691,700 | Yahoo!, Inc.*(a) | 22,175,902 | ||||||||
48,323,705 | ||||||||||
Manufacturing – 1.1% | ||||||||||
295,000 | Rockwell Automation, Inc. | 20,110,150 | ||||||||
Medical Products – 5.1% | ||||||||||
114,600 | C.R. Bard, Inc. | 7,505,154 | ||||||||
143,030 | Fisher Scientific International, Inc.* | 9,748,925 | ||||||||
666,600 | Medtronic, Inc. | 35,963,070 | ||||||||
585,926 | Stryker Corp. | 27,081,500 | ||||||||
249,400 | Zimmer Holdings, Inc.* | 17,253,492 | ||||||||
97,552,141 | ||||||||||
Movies & Entertainment – 2.3% | ||||||||||
1,467,140 | Time Warner, Inc. | 25,396,194 | ||||||||
486,065 | Viacom, Inc. Class B* | 19,423,157 | ||||||||
44,819,351 | ||||||||||
Networking/Telecommunications Equipment – 2.6% | ||||||||||
2,456,075 | Cisco Systems, Inc.* | 49,710,958 | ||||||||
Oil & Gas – 4.8% | ||||||||||
777,810 | Canadian Natural Resources Ltd. | 42,437,314 | ||||||||
657,110 | Suncor Energy, Inc. | 49,118,972 | ||||||||
91,556,286 | ||||||||||
Oil Well Services & Equipment��– 5.2% | ||||||||||
500,710 | Baker Hughes, Inc. | 34,033,259 | ||||||||
566,124 | Schlumberger Ltd. | 65,104,260 | ||||||||
99,137,519 | ||||||||||
24
Shares | Description | Value | ||||||||
Common Stocks – (continued) | ||||||||||
Other Health Care – 0.5% | ||||||||||
165,390 | Omnicare, Inc. | $ | 10,063,981 | |||||||
Pharmacy Benefit Manager – 2.4% | ||||||||||
525,473 | Caremark Rx, Inc.* | 26,142,282 | ||||||||
340,500 | Medco Health Solutions, Inc.* | 18,972,660 | ||||||||
45,114,942 | ||||||||||
Producer Goods – 0.8% | ||||||||||
206,070 | W.W. Grainger, Inc. | 15,257,423 | ||||||||
Publishing – 1.4% | ||||||||||
518,513 | Lamar Advertising Co.* | 26,454,533 | ||||||||
Retailing – 6.7% | ||||||||||
703,000 | Lowe’s Companies, Inc. | 47,930,540 | ||||||||
601,967 | PETCO Animal Supplies, Inc.* | 11,714,278 | ||||||||
623,000 | Target Corp. | 33,891,200 | ||||||||
771,870 | Wal-Mart Stores, Inc. | 35,012,023 | ||||||||
128,548,041 | ||||||||||
Semiconductors – 5.7% | ||||||||||
579,160 | Intel Corp. | 11,930,696 | ||||||||
1,093,300 | Linear Technology Corp. | 40,299,038 | ||||||||
1,225,900 | QUALCOMM, Inc. | 57,874,739 | ||||||||
110,104,473 | ||||||||||
Specialty Finance – 6.7% | ||||||||||
373,100 | American Express Co. | 20,102,628 | ||||||||
386,843 | Fannie Mae | 21,152,575 | ||||||||
1,305,000 | Freddie Mac | 87,943,950 | ||||||||
129,199,153 | ||||||||||
Technology Services – 0.6% | ||||||||||
194,440 | Cognizant Technology Solutions Corp.* | 11,201,688 | ||||||||
Telecommunications – 3.5% | ||||||||||
1,230,700 | American Tower Corp.* | 39,173,181 | ||||||||
593,805 | Crown Castle International Corp.* | 18,615,787 | ||||||||
321,510 | NeuStar, Inc.* | 9,259,488 | ||||||||
67,048,456 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $1,467,518,326) | $ | 1,905,068,833 | ||||||||
Principal | Interest | Maturity | ||||||||||||||
Amount | Rate | Date | Value | |||||||||||||
Repurchase Agreement – 0.9% | ||||||||||||||||
Joint Repurchase Agreement Account II(b) | ||||||||||||||||
$ | 18,000,000 | 4.57 | % | 03/01/2006 | $ | 18,000,000 | ||||||||||
Maturity Value: $18,002,285 | ||||||||||||||||
(Cost $18,000,000) | ||||||||||||||||
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL | ||||||||||||||||
(Cost $1,485,518,326) | $ | 1,923,068,833 | ||||||||||||||
Shares | Description | Value | ||||||||
Securities Lending Collateral – 1.1% | ||||||||||
20,742,300 | Boston Global Investment Trust – Enhanced Portfolio | $ | 20,742,300 | |||||||
(Cost $20,742,300) | ||||||||||
TOTAL INVESTMENTS – 101.2% | ||||||||||
(Cost $1,506,260,626) | $ | 1,943,811,133 | ||||||||
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. |
* | Non-income producing security. | |
(a) | All or a portion of security is on loan. | |
(b) | Joint repurchase agreement was entered into on February 28, 2006. Additional information appears on page 35. |
25
Statement of Investments
Shares | Description | Value | ||||||||
Common Stocks – 98.6% | ||||||||||
Aerospace & Defense – 1.3% | ||||||||||
76,150 | United Technologies Corp. | $ | 4,454,775 | |||||||
Banks – 0.6% | ||||||||||
32,030 | Golden West Financial Corp. | 2,275,091 | ||||||||
Beverages – 4.6% | ||||||||||
75,360 | Fortune Brands, Inc. | 5,844,168 | ||||||||
180,220 | PepsiCo, Inc. | 10,652,804 | ||||||||
16,496,972 | ||||||||||
Biotechnology – 3.2% | ||||||||||
125,420 | Amgen, Inc.* | 9,467,956 | ||||||||
52,130 | MedImmune, Inc.* | 1,902,224 | ||||||||
11,370,180 | ||||||||||
Broadcasting & Cable/Satellite TV – 4.6% | ||||||||||
145,140 | Clear Channel Communications, Inc. | 4,107,462 | ||||||||
311,757 | Univision Communications, Inc.* | 10,428,272 | ||||||||
81,640 | XM Satellite Radio Holdings, Inc.* | 1,803,427 | ||||||||
16,339,161 | ||||||||||
Commercial Services – 5.6% | ||||||||||
92,330 | Moody’s Corp. | 6,186,110 | ||||||||
259,568 | The McGraw-Hill Companies, Inc. | 13,780,465 | ||||||||
19,966,575 | ||||||||||
Computer Hardware – 3.2% | ||||||||||
198,500 | Dell, Inc.* | 5,756,500 | ||||||||
403,470 | EMC Corp.* | 5,656,649 | ||||||||
11,413,149 | ||||||||||
Computer Services – 4.1% | ||||||||||
319,960 | First Data Corp. | 14,439,795 | ||||||||
Computer Software – 5.9% | ||||||||||
130,640 | Electronic Arts, Inc.* | 6,789,361 | ||||||||
531,960 | Microsoft Corp. | 14,309,724 | ||||||||
21,099,085 | ||||||||||
Drugs & Medicine – 3.4% | ||||||||||
56,160 | Eli Lilly & Co. | 3,123,619 | ||||||||
131,490 | Pfizer, Inc. | 3,443,723 | ||||||||
107,500 | Wyeth | 5,353,500 | ||||||||
11,920,842 | ||||||||||
Financials – 2.2% | ||||||||||
484,120 | The Charles Schwab Corp. | 7,847,585 | ||||||||
Foods – 2.0% | ||||||||||
31,440 | The Hershey Co. | 1,608,156 | ||||||||
87,150 | Wm. Wrigley Jr. Co. | 5,537,511 | ||||||||
7,145,667 | ||||||||||
Gaming/Lodging – 5.1% | ||||||||||
127,600 | Carnival Corp. | 6,590,540 | ||||||||
72,320 | Harrah’s Entertainment, Inc. | 5,201,254 | ||||||||
94,470 | Marriott International, Inc. | 6,461,748 | ||||||||
18,253,542 | ||||||||||
Insurance – 0.6% | ||||||||||
57,510 | Willis Group Holdings Ltd. | 1,980,644 | ||||||||
Internet & Online – 2.6% | ||||||||||
14,380 | Google, Inc.* | 5,214,476 | ||||||||
122,500 | Yahoo!, Inc.* | 3,927,350 | ||||||||
9,141,826 | ||||||||||
Medical Products – 6.9% | ||||||||||
79,850 | Fisher Scientific International, Inc.* | 5,442,576 | ||||||||
162,590 | Medtronic, Inc. | 8,771,730 | ||||||||
102,560 | Stryker Corp. | 4,740,323 | ||||||||
77,970 | Zimmer Holdings, Inc.* | 5,393,965 | ||||||||
24,348,594 | ||||||||||
Movies & Entertainment – 2.9% | ||||||||||
340,090 | Time Warner, Inc. | 5,886,958 | ||||||||
112,587 | Viacom, Inc. Class B* | 4,498,977 | ||||||||
10,385,935 | ||||||||||
Networking/Telecommunications Equipment – 2.7% | ||||||||||
470,480 | Cisco Systems, Inc.* | 9,522,515 | ||||||||
Oil & Gas – 3.3% | ||||||||||
56,060 | Chesapeake Energy Corp.(a) | 1,664,421 | ||||||||
134,590 | Suncor Energy, Inc. | 10,060,603 | ||||||||
11,725,024 | ||||||||||
Oil Well Services & Equipment – 7.3% | ||||||||||
129,130 | Baker Hughes, Inc. | 8,776,966 | ||||||||
148,670 | Schlumberger Ltd. | 17,097,050 | ||||||||
25,874,016 | ||||||||||
Pharmacy Benefit Manager – 3.4% | ||||||||||
121,520 | Caremark Rx, Inc.* | 6,045,620 | ||||||||
108,490 | Medco Health Solutions, Inc.* | 6,045,063 | ||||||||
12,090,683 | ||||||||||
Publishing – 1.2% | ||||||||||
86,140 | Lamar Advertising Co.* | 4,394,863 | ||||||||
Retailing – 5.9% | ||||||||||
154,160 | Lowe’s Companies, Inc. | 10,510,629 | ||||||||
70,800 | Target Corp. | 3,851,520 | ||||||||
148,250 | Wal-Mart Stores, Inc. | 6,724,620 | ||||||||
21,086,769 | ||||||||||
Semiconductors – 6.5% | ||||||||||
146,060 | Intel Corp. | 3,008,836 | ||||||||
200,340 | Linear Technology Corp. | 7,384,532 | ||||||||
268,700 | QUALCOMM, Inc. | 12,685,327 | ||||||||
23,078,695 | ||||||||||
26
Shares | Description | Value | ||||||||
Common Stocks – (continued) | ||||||||||
Specialty Finance – 6.4% | ||||||||||
68,950 | American Express Co. | $ | 3,715,026 | |||||||
280,050 | Freddie Mac | 18,872,570 | ||||||||
22,587,596 | ||||||||||
Telecommunications – 3.1% | ||||||||||
134,170 | American Tower Corp.* | 4,270,631 | ||||||||
210,030 | Crown Castle International Corp.* | 6,584,441 | ||||||||
10,855,072 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $293,050,431) | $ | 350,094,651 | ||||||||
Principal | Interest | Maturity | ||||||||||||||
Amount | Rate | Date | Value | |||||||||||||
Repurchase Agreement – 2.4% | ||||||||||||||||
Joint Repurchase Agreement Account II(b) | ||||||||||||||||
$ | 8,400,000 | 4.57 | % | 03/01/2006 | $ | 8,400,000 | ||||||||||
Maturity Value: $8,401,066 | ||||||||||||||||
(Cost $8,400,000) | ||||||||||||||||
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL | ||||||||||||||||
(Cost $301,450,431) | $ | 358,494,651 | ||||||||||||||
Shares | Description | Value | ||||||||
Securities Lending Collateral – 0.3% | ||||||||||
973,500 | Boston Global Investment Trust – Enhanced Portfolio | $ | 973,500 | |||||||
(Cost $973,500) | ||||||||||
TOTAL INVESTMENTS – 101.3% | ||||||||||
(Cost $302,423,931) | $ | 359,468,151 | ||||||||
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. |
* | Non-income producing security. | |
(a) | All or portion of security is on loan. | |
(b) | Joint repurchase agreement was entered into on February 28, 2006. Additional information appears on page 35. |
27
Statement of Investments
Shares | Description | Value | ||||||||
Common Stocks – 97.9% | ||||||||||
Beverages – 3.9% | ||||||||||
115,980 | PepsiCo, Inc. | $ | 6,855,578 | |||||||
Biotechnology – 2.1% | ||||||||||
48,010 | Amgen, Inc.* | 3,624,275 | ||||||||
Broadcasting & Cable/Satellite TV – 6.7% | ||||||||||
60,020 | Clear Channel Communications, Inc. | 1,698,566 | ||||||||
197,370 | Univision Communications, Inc.* | 6,602,027 | ||||||||
159,080 | XM Satellite Radio Holdings, Inc.* | 3,514,077 | ||||||||
11,814,670 | ||||||||||
Commercial Services – 7.4% | ||||||||||
43,240 | Moody’s Corp. | 2,897,080 | ||||||||
190,250 | The McGraw-Hill Companies, Inc. | 10,100,372 | ||||||||
12,997,452 | ||||||||||
Computer Services – 5.5% | ||||||||||
213,430 | First Data Corp. | 9,632,096 | ||||||||
Computer Software – 7.3% | ||||||||||
98,010 | Electronic Arts, Inc.* | 5,093,580 | ||||||||
287,080 | Microsoft Corp. | 7,722,452 | ||||||||
12,816,032 | ||||||||||
Financials – 3.2% | ||||||||||
342,850 | The Charles Schwab Corp. | 5,557,598 | ||||||||
Foods – 1.5% | ||||||||||
41,450 | Wm. Wrigley Jr. Co. | 2,633,733 | ||||||||
Gaming/Lodging – 7.4% | ||||||||||
61,090 | Carnival Corp. | 3,155,299 | ||||||||
232,170 | Cendant Corp. | 3,858,665 | ||||||||
84,390 | Harrah’s Entertainment, Inc. | 6,069,329 | ||||||||
13,083,293 | ||||||||||
Internet & Online – 3.5% | ||||||||||
10,040 | Google, Inc.* | 3,640,705 | ||||||||
80,110 | Yahoo!, Inc.* | 2,568,326 | ||||||||
6,209,031 | ||||||||||
Medical Products – 4.9% | ||||||||||
82,100 | Medtronic, Inc. | 4,429,295 | ||||||||
89,250 | Stryker Corp. | 4,125,135 | ||||||||
8,554,430 | ||||||||||
Movies & Entertainment – 4.1% | ||||||||||
180,790 | Time Warner, Inc. | 3,129,475 | ||||||||
101,245 | Viacom, Inc. Class B* | 4,045,750 | ||||||||
7,175,225 | ||||||||||
Networking/Telecommunications Equipment – 2.8% | ||||||||||
239,670 | Cisco Systems, Inc.* | 4,850,921 | ||||||||
Oil & Gas – 3.1% | ||||||||||
71,780 | Suncor Energy, Inc. | 5,365,555 | ||||||||
Oil Well Services & Equipment – 6.6% | ||||||||||
46,310 | Baker Hughes, Inc. | 3,147,691 | ||||||||
73,630 | Schlumberger Ltd. | 8,467,450 | ||||||||
11,615,141 | ||||||||||
Pharmacy Benefit Manager – 4.7% | ||||||||||
100,100 | Caremark Rx, Inc.* | 4,979,975 | ||||||||
60,140 | Medco Health Solutions, Inc.* | 3,351,001 | ||||||||
8,330,976 | ||||||||||
Retailing – 4.6% | ||||||||||
67,670 | Lowe’s Companies, Inc. | 4,613,741 | ||||||||
64,070 | Target Corp. | 3,485,408 | ||||||||
8,099,149 | ||||||||||
Semiconductors – 5.4% | ||||||||||
88,492 | Linear Technology Corp. | 3,261,815 | ||||||||
130,510 | QUALCOMM, Inc. | 6,161,377 | ||||||||
9,423,192 | ||||||||||
Specialty Finance – 9.0% | ||||||||||
64,960 | American Express Co. | 3,500,045 | ||||||||
182,450 | Freddie Mac | 12,295,305 | ||||||||
15,795,350 | ||||||||||
Telecommunications – 4.2% | ||||||||||
132,700 | American Tower Corp.* | 4,223,841 | ||||||||
103,240 | Crown Castle International Corp.* | 3,236,574 | ||||||||
7,460,415 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $148,208,955) | $ | 171,894,112 | ||||||||
TOTAL INVESTMENTS BEFORE REPURCHASE AGREEMENT – 97.9% | ||||||||||
(Cost $148,208,955) | $ | 171,894,112 | ||||||||
Principal | Interest | Maturity | ||||||||||||||
Amount | Rate | Date | Value | |||||||||||||
Repurchase Agreement – 1.4% | ||||||||||||||||
Joint Repurchase Agreement Account II(a) | ||||||||||||||||
$ | 2,500,000 | 4.57 | % | 03/01/2006 | $ | 2,500,000 | ||||||||||
Maturity Value: $2,500,317 | ||||||||||||||||
(Cost $2,500,000) | ||||||||||||||||
TOTAL INVESTMENTS – 99.3% | ||||||||||||||||
(Cost $150,708,955) | $ | 174,394,112 | ||||||||||||||
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. |
* | Non-income producing security. | |
(a) | Joint repurchase agreement was entered into on February 28, 2006. Additional information appears on page 35. |
28
Statement of Investments
Shares | ||||||||||
Description | Value | |||||||||
Common Stocks – 97.6% | ||||||||||
Aerospace & Defense – 1.8% | ||||||||||
549,550 | Alliant Techsystems, Inc.*(a) | $ | 41,996,611 | |||||||
Apparel/Shoes – 2.7% | ||||||||||
526,881 | Chico’s FAS, Inc.* | 24,789,751 | ||||||||
1,289,800 | Urban Outfitters, Inc.* | 36,243,380 | ||||||||
61,033,131 | ||||||||||
Audio & Visual Equipment – 2.0% | ||||||||||
414,031 | Harman International Industries, Inc. | 45,688,321 | ||||||||
Audio Technology – 0.8% | ||||||||||
955,015 | Dolby Laboratories, Inc.* | 19,453,655 | ||||||||
Auto Parts & Related – 1.6% | ||||||||||
2,234,864 | Gentex Corp. | 37,232,834 | ||||||||
Banks – 1.6% | ||||||||||
129,685 | City National Corp. | 9,850,873 | ||||||||
342,430 | Commerce Bancorp, Inc.(a) | 11,358,403 | ||||||||
604,442 | TCF Financial Corp. | 15,328,649 | ||||||||
36,537,925 | ||||||||||
Beverages – 2.0% | ||||||||||
582,317 | Fortune Brands, Inc. | 45,158,683 | ||||||||
Biotechnology – 1.1% | ||||||||||
677,826 | MedImmune, Inc.* | 24,733,871 | ||||||||
Broadcasting & Cable/Satellite TV – 4.5% | ||||||||||
3,780,480 | Entravision Communications Corp.* | 28,088,966 | ||||||||
1,097,181 | Univision Communications, Inc.* | 36,700,705 | ||||||||
1,792,900 | XM Satellite Radio Holdings, Inc.*(a) | 39,605,161 | ||||||||
104,394,832 | ||||||||||
Commercial Services – 5.7% | ||||||||||
1,068,031 | Alliance Data Systems Corp.* | 46,203,021 | ||||||||
1,397,785 | ARAMARK Corp. Class B(a) | 39,780,961 | ||||||||
944,521 | Iron Mountain, Inc.* | 41,275,568 | ||||||||
92,800 | Suntech Power Holdings Co., Ltd. ADR* | 3,485,568 | ||||||||
130,745,118 | ||||||||||
Computer Hardware – 1.8% | ||||||||||
1,249,992 | Avocent Corp.* | 41,762,233 | ||||||||
Computer Services – 4.9% | ||||||||||
1,511,789 | Ceridian Corp.* | 39,094,863 | ||||||||
720,015 | ChoicePoint, Inc.* | 31,968,666 | ||||||||
1,422,646 | MoneyGram International, Inc. | 40,787,261 | ||||||||
111,850,790 | ||||||||||
Computer Software – 5.0% | ||||||||||
2,525,889 | Activision, Inc.* | 31,573,612 | ||||||||
1,012,225 | Cognos, Inc.*(a) | 38,717,606 | ||||||||
752,041 | NAVTEQ* | 34,827,019 | ||||||||
261,100 | Salesforce.com, Inc.*(a) | 9,099,335 | ||||||||
114,217,572 | ||||||||||
Consumer Services – 0.5% | ||||||||||
400,798 | VCA Antech, Inc.* | 11,202,304 | ||||||||
Drugs & Medicine – 1.1% | ||||||||||
804,054 | OSI Pharmaceuticals, Inc.*(a) | 26,115,674 | ||||||||
Foods – 0.7% | ||||||||||
336,300 | The Hershey Co. | 17,201,745 | ||||||||
Gaming/Lodging – 2.1% | ||||||||||
385,900 | Harrah’s Entertainment, Inc. | 27,753,928 | ||||||||
294,300 | Marriott International, Inc. | 20,130,120 | ||||||||
47,884,048 | ||||||||||
Health Care Services – 1.2% | ||||||||||
272,527 | Covance, Inc.* | 15,384,149 | ||||||||
195,700 | Omnicare, Inc. | 11,908,345 | ||||||||
27,292,494 | ||||||||||
Home Building & Related – 1.6% | ||||||||||
945,230 | American Standard Companies, Inc. | 37,412,203 | ||||||||
Housewares – 2.0% | ||||||||||
1,115,731 | Williams-Sonoma, Inc.* | 45,175,948 | ||||||||
Insurance – 0.6% | ||||||||||
377,723 | Willis Group Holdings Ltd. | 13,008,780 | ||||||||
Internet & Online – 1.1% | ||||||||||
1,779,134 | CNET Networks, Inc.* | 24,623,215 | ||||||||
Manufacturing – 3.6% | ||||||||||
934,861 | Pentair, Inc. | 37,534,669 | ||||||||
668,165 | Rockwell Automation, Inc. | 45,548,808 | ||||||||
83,083,477 | ||||||||||
29
Statement of Investments (continued)
Shares | ||||||||||
Description | Value | |||||||||
Common Stocks – (continued) | ||||||||||
Medical Products – 8.5% | ||||||||||
862,432 | Advanced Medical Optics, Inc.*(a) | $ | 38,360,975 | |||||||
1,348,975 | Biomet, Inc. | 49,102,690 | ||||||||
628,636 | C.R. Bard, Inc. | 41,169,372 | ||||||||
670,929 | Fisher Scientific International, Inc.* | 45,730,521 | ||||||||
421,096 | Gen-Probe, Inc.* | 21,037,956 | ||||||||
195,401,514 | ||||||||||
Medical Supplies – 2.0% | ||||||||||
938,687 | Charles River Laboratories International, Inc.* | 45,385,516 | ||||||||
Natural Gas – 1.1% | ||||||||||
624,028 | XTO Energy, Inc. | 26,140,533 | ||||||||
Networking/Telecommunications Equipment – 2.6% | ||||||||||
874,759 | Amphenol Corp. | 43,939,145 | ||||||||
865,719 | Juniper Networks, Inc.* | 15,920,572 | ||||||||
59,859,717 | ||||||||||
Oil & Gas – 1.3% | ||||||||||
391,200 | Chesapeake Energy Corp.(a) | 11,614,728 | ||||||||
517,733 | Quicksilver Resources, Inc.*(a) | 18,804,063 | ||||||||
30,418,791 | ||||||||||
Oil Well Services & Equipment – 6.1% | ||||||||||
977,072 | Cooper Cameron Corp.* | 39,571,416 | ||||||||
245,458 | Grant Prideco, Inc.* | 9,933,685 | ||||||||
1,088,205 | Smith International, Inc. | 42,146,180 | ||||||||
1,124,777 | Weatherford International Ltd.*(a) | 48,500,384 | ||||||||
140,151,665 | ||||||||||
Other Technology – 5.0% | ||||||||||
1,349,644 | Cogent, Inc.* | 31,392,720 | ||||||||
1,653,833 | FLIR Systems, Inc.*(a) | 42,735,045 | ||||||||
903,417 | Zebra Technologies Corp.*(a) | 39,876,826 | ||||||||
114,004,591 | ||||||||||
Pharmacy Benefit Manager – 1.7% | ||||||||||
428,953 | Caremark Rx, Inc.* | 21,340,411 | ||||||||
335,115 | Medco Health Solutions, Inc.* | 18,672,608 | ||||||||
40,013,019 | ||||||||||
Producer Goods – 2.0% | ||||||||||
614,075 | W.W. Grainger, Inc. | 45,466,113 | ||||||||
Publishing – 2.5% | ||||||||||
910,734 | Lamar Advertising Co.* | 46,465,649 | ||||||||
228,194 | The E.W. Scripps Co. | 10,971,567 | ||||||||
57,437,216 | ||||||||||
Restaurants – 1.3% | ||||||||||
607,658 | P.F. Chang’s China Bistro, Inc.*(a) | 29,374,188 | ||||||||
Retailing – 0.9% | ||||||||||
1,011,834 | PETCO Animal Supplies, Inc.* | 19,690,290 | ||||||||
Semi Capital – 1.5% | ||||||||||
1,085,594 | Tessera Technologies, Inc.* | 33,903,101 | ||||||||
Semiconductors – 5.1% | ||||||||||
287,700 | Advanced Micro Devices, Inc.* | 11,125,359 | ||||||||
1,190,700 | Linear Technology Corp. | 43,889,202 | ||||||||
258,575 | Marvell Technology Group Ltd.* | 15,829,962 | ||||||||
610,353 | Microchip Technology, Inc. | 21,484,426 | ||||||||
876,241 | Xilinx, Inc.(a) | 23,903,854 | ||||||||
116,232,803 | ||||||||||
Technology Services – 1.7% | ||||||||||
679,813 | Cognizant Technology Solutions Corp.* | 39,164,027 | ||||||||
Telecommunications – 4.3% | ||||||||||
1,272,650 | Crown Castle International Corp.* | 39,897,577 | ||||||||
1,245,440 | NeuStar, Inc.* | 35,868,672 | ||||||||
315,360 | Research In Motion Ltd.*(a) | 22,242,341 | ||||||||
98,008,590 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $1,943,533,133) | $ | 2,238,457,138 | ||||||||
Principal | Interest | Maturity | ||||||||||||||
Amount | Rate | Date | Value | |||||||||||||
Repurchase Agreement – 2.2% | ||||||||||||||||
Joint Repurchase Agreement Account II(b) | ||||||||||||||||
$ | 49,400,000 | 4.57 | % | 03/01/2006 | $ | 49,400,000 | ||||||||||
Maturity Value: $49,406,271 | ||||||||||||||||
(Cost $49,400,000) | ||||||||||||||||
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL | ||||||||||||||||
(Cost $1,992,933,133) | $ | 2,287,857,138 | ||||||||||||||
30
Shares | Description | Value | ||||||||
Securities Lending Collateral – 9.2% | ||||||||||
211,546,025 | Boston Global Investment Trust – Enhanced Portfolio | $ | 211,546,025 | |||||||
(Cost $211,546,025) | ||||||||||
TOTAL INVESTMENTS – 109.0% | ||||||||||
(Cost $2,204,479,158) | $ | 2,499,403,163 | ||||||||
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. |
* | Non-income producing security. | |
(a) | All or portion of security is on loan. | |
(b) | Joint repurchase agreement was entered into on February 28, 2006. Additional information appears on page 35. |
Investment Abbreviation: | ||||||
ADR | — | American Depositary Receipt | ||||
31
Statement of Investments
Shares | Description | Value | ||||||||
Common Stocks – 87.7% | ||||||||||
Aerospace/Defense – 1.1% | ||||||||||
4,100 | Alliant Techsystems, Inc.* | $ | 313,322 | |||||||
Apparel/Shoes – 2.9% | ||||||||||
5,710 | Chico’s FAS, Inc.* | 268,655 | ||||||||
8,420 | Crocs, Inc.*(a) | 231,466 | ||||||||
11,930 | Urban Outfitters, Inc.* | 335,233 | ||||||||
835,354 | ||||||||||
Audio & Visual Equipment – 0.9% | ||||||||||
2,360 | Harman International Industries, Inc. | 260,426 | ||||||||
Audio Technology – 1.1% | ||||||||||
14,920 | Dolby Laboratories, Inc.* | 303,920 | ||||||||
Auto Parts & Related – 0.7% | ||||||||||
12,370 | Gentex Corp. | 206,084 | ||||||||
Autos – 0.4% | ||||||||||
5,690 | Wabash National Corp. | 113,629 | ||||||||
Banks – 1.6% | ||||||||||
5,880 | Commerce Bancorp, Inc.(a) | 195,039 | ||||||||
18,590 | Commercial Capital Bancorp, Inc. | 266,395 | ||||||||
461,434 | ||||||||||
Biotechnology – 2.0% | ||||||||||
15,300 | Anadys Pharmaceuticals Inc.* | 198,900 | ||||||||
11,500 | PDL BioPharma Inc.* | 360,065 | ||||||||
558,965 | ||||||||||
Broadcasting & Cable/Satellite TV – 1.0% | ||||||||||
38,870 | Entravision Communications Corp.* | 288,804 | ||||||||
Commercial Services – 5.8% | ||||||||||
6,940 | Alliance Data Systems Corp.* | 300,224 | ||||||||
5,700 | ARAMARK Corp. Class B | 162,222 | ||||||||
5,770 | Bright Horizons Family Solutions Inc* | 193,353 | ||||||||
3,620 | CARBO Ceramics, Inc. | 198,195 | ||||||||
4,130 | Iron Mountain, Inc.* | 180,481 | ||||||||
4,180 | LoJack Corp.* | 95,095 | ||||||||
11,860 | Rollins, Inc. | 229,728 | ||||||||
12,240 | Wright Express Corp.* | 294,250 | ||||||||
1,653,548 | ||||||||||
Computer Hardware – 2.3% | ||||||||||
8,900 | Avocent Corp.* | 297,349 | ||||||||
5,990 | Coinstar, Inc.* | 154,542 | ||||||||
12,120 | Mobility Electronics, Inc.* | 114,292 | ||||||||
5,940 | Sigma Designs, Inc.* | 87,318 | ||||||||
653,501 | ||||||||||
Computer Services – 3.5% | ||||||||||
10,370 | Ceridian Corp.* | 268,168 | ||||||||
6,640 | ChoicePoint, Inc.* | 294,816 | ||||||||
7,750 | MoneyGram International, Inc. | 222,193 | ||||||||
10,250 | SBA Communications Corp* | 230,522 | ||||||||
1,015,699 | ||||||||||
Computer Software – 3.3% | ||||||||||
22,720 | Activision, Inc.* | 284,000 | ||||||||
8,300 | Cognos, Inc.* | 317,475 | ||||||||
7,270 | NAVTEQ* | 336,674 | ||||||||
938,149 | ||||||||||
Consumer Services – 2.0% | ||||||||||
6,000 | Ritchie Bros. Auctioneers, Inc. | 286,380 | ||||||||
10,700 | VCA Antech, Inc.* | 299,065 | ||||||||
585,445 | ||||||||||
Drugs & Medicine – 2.0% | ||||||||||
5,000 | ICOS Corp.* | 120,650 | ||||||||
33,190 | OraSure Technologies, Inc.* | 315,969 | ||||||||
4,340 | OSI Pharmaceuticals, Inc.* | 140,963 | ||||||||
577,582 | ||||||||||
Electrical Equipment – 0.4% | ||||||||||
11,550 | Symmetricom, Inc.* | 103,604 | ||||||||
Financials – 2.8% | ||||||||||
6,020 | Federated Investors, Inc. Class B | 234,118 | ||||||||
6,020 | Nuveen Investments | 289,983 | ||||||||
6,770 | Raymond James Financial, Inc. | 290,975 | ||||||||
815,076 | ||||||||||
Foods – 0.9% | ||||||||||
8,110 | McCormick & Company, Inc. | 266,251 | ||||||||
Gaming/Lodging – 2.6% | ||||||||||
5,400 | Four Seasons Hotels, Inc. | 305,964 | ||||||||
8,650 | Orient-Express Hotels Ltd. | 301,712 | ||||||||
2,080 | Station Casinos, Inc. | 142,376 | ||||||||
750,052 | ||||||||||
Health Care Services – 1.8% | ||||||||||
5,750 | Covance, Inc.* | 324,587 | ||||||||
8,460 | Nighthawk Radiology Holdings, Inc.* | 200,248 | ||||||||
524,835 | ||||||||||
Hospitals & Related – 1.7% | ||||||||||
8,080 | Psychiatric Solutions, Inc.* | 266,882 | ||||||||
9,220 | Symbion, Inc.* | 217,408 | ||||||||
484,290 | ||||||||||
Household/Personal Care – 2.0% | ||||||||||
5,600 | Central Garden & Pet Co.* | 304,416 | ||||||||
7,210 | Chattem, Inc.* | 281,118 | ||||||||
585,534 | ||||||||||
Housewares – 1.1% | ||||||||||
7,810 | Williams-Sonoma, Inc.* | 316,227 | ||||||||
Insurance – 0.8% | ||||||||||
4,210 | Mercury General Corp. | 235,339 | ||||||||
Internet & Online – 0.6% | ||||||||||
11,840 | CNET Networks, Inc.* | 163,866 | ||||||||
32
Shares | Description | Value | ||||||||
Common Stocks – (continued) | ||||||||||
Leisure – 0.7% | ||||||||||
4,540 | Life Time Fitness, Inc.* | $ | 190,498 | |||||||
Manufacturing – 3.7% | ||||||||||
4,600 | Kennametal, Inc. | 269,008 | ||||||||
7,840 | Pentair, Inc. | 314,776 | ||||||||
4,870 | Roper Industries, Inc. | 219,491 | ||||||||
6,980 | Watts Water Technologies, Inc. | 249,744 | ||||||||
1,053,019 | ||||||||||
Medical Products – 4.8% | ||||||||||
5,650 | Advanced Medical Optics, Inc.* | 251,312 | ||||||||
5,400 | ArthroCare Corp.* | 243,918 | ||||||||
2,830 | Beckman Coulter, Inc. | 152,679 | ||||||||
11,240 | Cytyc Corp.* | 324,049 | ||||||||
5,900 | Gen-Probe, Inc.* | 294,764 | ||||||||
3,080 | Kinetic Concepts, Inc.* | 114,268 | ||||||||
1,380,990 | ||||||||||
Medical Supplies – 1.1% | ||||||||||
6,260 | Charles River Laboratories International, Inc.* | 302,671 | ||||||||
Movies & Entertainment – 0.6% | ||||||||||
11,300 | LodgeNet Entertainment Corp.* | 160,912 | ||||||||
Networking/Telecommunications Equipment – 1.2% | ||||||||||
6,850 | Amphenol Corp. | 344,076 | ||||||||
Oil & Gas – 2.3% | ||||||||||
6,420 | OPTI Canada, Inc.* | 236,135 | ||||||||
3,190 | Plains Exploration & Production Co.* | 129,993 | ||||||||
2,200 | Quicksilver Resources, Inc.* | 79,904 | ||||||||
34,400 | UTS Energy Corp* | 201,596 | ||||||||
647,628 | ||||||||||
Oil Well Services & Equipment – 3.7% | ||||||||||
6,480 | Cooper Cameron Corp.* | 262,440 | ||||||||
6,490 | FMC Technologies, Inc.* | 304,511 | ||||||||
5,640 | Grant Prideco, Inc.* | 228,251 | ||||||||
6,290 | W-H Energy Services, Inc.* | 248,455 | ||||||||
1,043,657 | ||||||||||
Other Consumer Discretionary – 1.0% | ||||||||||
5,650 | Weight Watchers International, Inc.* | 296,456 | ||||||||
Other Producer Goods & Services – 1.2% | ||||||||||
4,260 | Peet’s Coffee & Tea, Inc.* | 127,544 | ||||||||
17,210 | TurboChef Technologies, Inc.*(a) | 228,893 | ||||||||
356,437 | ||||||||||
Other Technology – 3.1% | ||||||||||
12,960 | Cogent, Inc.* | 301,450 | ||||||||
12,310 | FLIR Systems, Inc.* | 318,090 | ||||||||
6,360 | Zebra Technologies Corp.* | 280,730 | ||||||||
900,270 | ||||||||||
Producer Goods – 2.1% | ||||||||||
6,730 | Fastenal Co. | 295,514 | ||||||||
3,970 | W.W. Grainger, Inc. | 293,939 | ||||||||
589,453 | ||||||||||
Publishing – 1.9% | ||||||||||
3,450 | Getty Images, Inc.* | 279,553 | ||||||||
5,200 | Lamar Advertising Co.* | 265,304 | ||||||||
544,857 | ||||||||||
Restaurants – 3.6% | ||||||||||
4,900 | Chipotle Mexican Grill, Inc.* | 223,440 | ||||||||
6,980 | P.F. Chang’s China Bistro, Inc.* | 337,413 | ||||||||
2,390 | Panera Bread Co.* | 169,356 | ||||||||
20,120 | Texas Roadhouse, Inc.* | 309,043 | ||||||||
1,039,252 | ||||||||||
Retailing – 4.4% | ||||||||||
5,080 | Blue Nile, Inc.*(a) | 169,520 | ||||||||
11,670 | Celebrate Express, Inc.* | 139,106 | ||||||||
4,900 | GameStop Corp.* | 196,147 | ||||||||
10,870 | PETCO Animal Supplies, Inc.* | 211,530 | ||||||||
6,770 | Select Comfort Corp.* | 247,444 | ||||||||
4,790 | Tractor Supply Co.* | 302,632 | ||||||||
1,266,379 | ||||||||||
Semi Capital – 2.3% | ||||||||||
8,750 | FormFactor, Inc.* | 322,350 | ||||||||
10,790 | Tessera Technologies, Inc.* | 336,972 | ||||||||
659,322 | ||||||||||
Semiconductors – 2.1% | ||||||||||
6,710 | Microchip Technology, Inc. | 236,192 | ||||||||
10,250 | PMC-Sierra, Inc.* | 104,652 | ||||||||
9,960 | Power Integrations, Inc.* | 247,307 | ||||||||
588,151 | ||||||||||
Specialty Chemicals – 0.7% | ||||||||||
3,060 | Sigma-Aldrich Corp. | 197,095 | ||||||||
Telecommunications – 1.9% | ||||||||||
8,840 | Crown Castle International Corp.* | 277,134 | ||||||||
9,070 | NeuStar, Inc.* | 261,216 | ||||||||
538,350 | ||||||||||
TOTAL COMMON STOCKS | ||||||||||
(Cost $23,749,011) | $ | 25,110,409 | ||||||||
33
Statement of Investments (continued)
Principal | Interest | Maturity | ||||||||||||||
Amount | Rate | Date | Value | |||||||||||||
Repurchase Agreement – 7.0% | ||||||||||||||||
Joint Repurchase Agreement Account II(b) | ||||||||||||||||
$ | 2,000,000 | 4.57 | % | 03/01/2006 | $ | 2,000,000 | ||||||||||
Maturity Value: $2,000,254 | ||||||||||||||||
(Cost $2,000,000) | ||||||||||||||||
TOTAL INVESTMENTS BEFORE SECURITIES LENDING COLLATERAL | ||||||||||||||||
(Cost $25,749,011) | $ | 27,110,409 | ||||||||||||||
Shares | Description | Value | ||||||||
Securities Lending Collateral – 1.9% | ||||||||||
549,750 | Boston Global Investment Trust – Enhanced Portfolio | $ | 549,750 | |||||||
(Cost $549,750) | ||||||||||
TOTAL INVESTMENTS – 96.6% | ||||||||||
(Cost $26,298,761) | $ | 27,660,159 | ||||||||
The percentage shown for each investment category reflects the value of investments in that category as a percentage of net assets. |
* | Non-income producing security. | |
(a) | All or a portion of security is on loan. | |
(b) | Joint repurchase agreement was entered into on February 28, 2006. Additional information appears on page 35. |
34
ADDITIONAL INVESTMENT INFORMATION |
JOINT REPURCHASE AGREEMENT ACCOUNT II — At February 28, 2006, the Funds had undivided interests in the Joint Repurchase Agreement Account II, as follows:
Fund | Principal Amount | |||
Capital Growth | $ | 18,000,000 | ||
Strategic Growth | 8,400,000 | |||
Concentrated Growth | 2,500,000 | |||
Growth Opportunities | 49,400,000 | |||
Small/ Mid Cap Growth | 2,000,000 | |||
Principal | Interest | Maturity | Maturity | |||||||||||
Repurchase Agreements | Amount | Rate | Date | Value | ||||||||||
Banc of America Securities LLC | $ | 3,019,900,000 | 4.56 | % | 03/01/2006 | $ | 3,020,282,521 | |||||||
Barclays Capital PLC | 3,000,000,000 | 4.57 | 03/01/2006 | 3,000,380,833 | ||||||||||
Credit Suisse First Boston LLC | 500,000,000 | 4.57 | 03/01/2006 | 500,063,472 | ||||||||||
Deutsche Bank Securities, Inc. | 3,020,000,000 | 4.57 | 03/01/2006 | 3,020,383,372 | ||||||||||
Greenwich Capital Markets | 300,000,000 | 4.58 | 03/01/2006 | 300,038,167 | ||||||||||
J.P. Morgan Securities, Inc. | 400,000,000 | 4.56 | 03/01/2006 | 400,050,667 | ||||||||||
Morgan Stanley & Co. | 2,925,000,000 | 4.57 | 03/01/2006 | 2,925,371,312 | ||||||||||
UBS Securities LLC | 1,500,000,000 | 4.57 | 03/01/2006 | 1,500,190,417 | ||||||||||
Wachovia Capital Markets | 400,000,000 | 4.58 | 03/01/2006 | 400,050,889 | ||||||||||
TOTAL | $ | 15,064,900,000 | $ | 15,066,811,650 | ||||||||||
35
Statements of Assets and Liabilities
Capital | |||||||||
Growth | |||||||||
Fund | |||||||||
Assets: | |||||||||
Investment in securities, at value (identified cost $1,485,518,326, $301,450,431, $150,708,955, $1,992,933,133 and $25,749,011, respectively)—including $19,934,226, $979,770, $0, $205,700,408 and $527,870 of securities on loan, respectively | $ | 1,923,068,833 | |||||||
Securities lending collateral, at value (cost $20,742,300, $973,500, $0, $211,546,025 and $549,750) | 20,742,300 | ||||||||
Cash | 58,930 | ||||||||
Receivables: | |||||||||
Investment securities sold | 439,201 | ||||||||
Fund shares sold | 2,588,130 | ||||||||
Dividends and interest | 2,066,273 | ||||||||
Reimbursement from investment adviser | 138,297 | ||||||||
Securities lending income | 2,495 | ||||||||
Deferred offering costs | — | ||||||||
Other assets | 27,597 | ||||||||
Total assets | 1,949,132,056 | ||||||||
Liabilities: | |||||||||
Payables: | |||||||||
Payable upon return of securities loaned | 20,742,300 | ||||||||
Investment securities purchased | — | ||||||||
Fund shares repurchased | 5,796,123 | ||||||||
Amounts owed to affiliates | 2,088,258 | ||||||||
Accrued expenses | 345,655 | ||||||||
Total liabilities | 28,972,336 | ||||||||
Net Assets: | |||||||||
Paid-in capital | 1,777,876,916 | ||||||||
Accumulated undistributed net investment loss | (1,772,944 | ) | |||||||
Accumulated net realized gain (loss) on investment transactions | (293,494,759 | ) | |||||||
Net unrealized gain on investments | 437,550,507 | ||||||||
NET ASSETS | $ | 1,920,159,720 | |||||||
Net Assets: | |||||||||
Class A | $ | 1,412,885,319 | |||||||
Class B | 134,471,598 | ||||||||
Class C | 75,500,581 | ||||||||
Institutional | 286,685,516 | ||||||||
Service | 10,616,706 | ||||||||
Shares Outstanding: | |||||||||
Class A | 66,275,051 | ||||||||
Class B | 6,813,876 | ||||||||
Class C | 3,831,190 | ||||||||
Institutional | 13,084,736 | ||||||||
Service | 503,682 | ||||||||
Total shares outstanding, $0.001 par value (unlimited number of shares authorized) | 90,508,535 | ||||||||
Net asset value, offering and redemption price per share:(a) | |||||||||
Class A | $21.32 | ||||||||
Class B | 19.73 | ||||||||
Class C | 19.71 | ||||||||
Institutional | 21.91 | ||||||||
Service | 21.08 | ||||||||
(a) | Maximum public offering price per share (NAV per share multiplied by 1.0582) for Class A Shares of the Capital Growth, Strategic Growth, Concentrated Growth, Growth Opportunities and Small/Mid Cap Growth Funds is $22.56, $9.83, $14.15, $23.82 and $12.08, respectively. At redemption, Class B and Class C Shares may be subject to a contingent deferred sales charge, assessed on the amount equal to the lesser of the current NAV or the original purchase price of the shares. |
36
Strategic | Concentrated | Growth | ||||||||||||||||
Growth | Growth | Opportunities | Small/Mid Cap | |||||||||||||||
Fund | Fund | Fund | Growth Fund | |||||||||||||||
$ | 358,494,651 | $ | 174,394,112 | $ | 2,287,857,138 | $ | 27,110,409 | |||||||||||
973,500 | — | 211,546,025 | 549,750 | |||||||||||||||
50,102 | 24,357 | 45,397 | 200,146 | |||||||||||||||
1,744,960 | 818,716 | 18,979,349 | — | |||||||||||||||
839,016 | 1,709,408 | 6,434,546 | 1,589,455 | |||||||||||||||
376,637 | 154,371 | 934,552 | 8,566 | |||||||||||||||
51,815 | 99,775 | — | 54,433 | |||||||||||||||
288 | — | 14,897 | 1,620 | |||||||||||||||
— | — | — | 69,421 | |||||||||||||||
4,856 | 2,527 | 32,022 | 253 | |||||||||||||||
362,535,825 | 177,203,266 | 2,525,843,926 | 29,584,053 | |||||||||||||||
973,500 | — | 211,546,025 | 549,750 | |||||||||||||||
4,196,782 | 1,092,367 | 13,496,558 | 147,492 | |||||||||||||||
1,892,409 | 129,024 | 4,427,521 | 749 | |||||||||||||||
343,265 | 158,975 | 2,301,393 | 28,415 | |||||||||||||||
173,474 | 203,368 | 343,377 | 227,897 | |||||||||||||||
7,579,4 | 30 1,583,734 | 232,114,874 | 954,303 | |||||||||||||||
381,194,726 | 149,565,449 | 1,967,600,906 | 27,051,653 | |||||||||||||||
(476,675 | ) | (160,621 | ) | (3,560,104 | ) | (28,940 | ) | |||||||||||
(82,805,876 | ) | 2,529,547 | 34,764,245 | 245,639 | ||||||||||||||
57,044,220 | 23,685,157 | 294,924,005 | 1,361,398 | |||||||||||||||
$ | 354,956,395 | $ | 175,619,532 | $ | 2,293,729,052 | $ | 28,629,750 | |||||||||||
$ | 136,959,068 | $ | 67,127,427 | $ | 1,043,705,776 | $ | 17,347,731 | |||||||||||
9,155,161 | 248,783 | 89,623,545 | 695,969 | |||||||||||||||
11,187,199 | 455,701 | 127,869,541 | 3,757,477 | |||||||||||||||
197,642,781 | 107,785,532 | 1,020,615,781 | 6,817,076 | |||||||||||||||
12,186 | 2,089 | 11,914,409 | 11,497 | |||||||||||||||
14,750,212 | 5,021,207 | 46,370,928 | 1,519,534 | |||||||||||||||
1,036,757 | 19,108 | 4,170,752 | 61,418 | |||||||||||||||
1,264,941 | 35,068 | 5,992,363 | 331,740 | |||||||||||||||
20,814,550 | 7,973,605 | 44,093,522 | 597,172 | |||||||||||||||
1,308 | 156 | 533,746 | 1,010 | |||||||||||||||
37,867,768 | 13,049,144 | 101,161,311 | 2,510,874 | |||||||||||||||
$9.29 | $13.37 | $22.51 | $11.42 | |||||||||||||||
8.83 | 13.02 | 21.49 | 11.33 | |||||||||||||||
8.84 | 12.99 | 21.34 | 11.33 | |||||||||||||||
9.50 | 13.52 | 23.15 | 11.42 | |||||||||||||||
9.32 | 13.36 | 22.32 | 11.38 | |||||||||||||||
37
Statements of Operations
Capital | |||||||||
Growth | |||||||||
Fund | |||||||||
Investment income: | |||||||||
Dividends(a) | $ | 9,223,624 | |||||||
Interest (including securities lending income of $78,692, $4,815, $156, $207,219 and $4,868, respectively) | 242,357 | ||||||||
Total income | 9,465,981 | ||||||||
Expenses: | |||||||||
Management fees | 8,951,921 | ||||||||
Distribution and service fees(b) | 2,825,235 | ||||||||
Transfer agent fees(b) | 1,571,107 | ||||||||
Custody and accounting fees | 127,748 | ||||||||
Registration fees | 93,485 | ||||||||
Printing fees | 56,104 | ||||||||
Professional fees | 45,513 | ||||||||
Amortization of offering costs | — | ||||||||
Service share fees | 25,333 | ||||||||
Trustee fees | 6,925 | ||||||||
Other | 45,516 | ||||||||
Total expenses | 13,748,887 | ||||||||
Less — expense reductions | (340,102 | ) | |||||||
Net expenses | 13,408,785 | ||||||||
NET INVESTMENT LOSS | (3,942,804 | ) | |||||||
Realized and unrealized gain (loss) on investment transactions: | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions (including commissions recaptured of $142,481, $18,571, $0, $276,554 and $0, respectively) | 67,028,717 | ||||||||
Foreign currency related transactions | 1,637 | ||||||||
Net change in unrealized gain (loss) on: | |||||||||
Investments | 53,394,593 | ||||||||
Translation of assets and liabilities denominated in foreign currencies | (137 | ) | |||||||
Net realized and unrealized gain on investment and foreign currency related transactions | 120,424,810 | ||||||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 116,482,006 | |||||||
(a) | Foreign taxes withheld on dividends were $17,098, $936, $449 and $228, for Capital Growth, Strategic Growth, Concentrated Growth and Small/Mid Cap Growth Funds, respectively. |
(b) | Class specific distribution, service and transfer agent fees were as follows: |
Distribution and Service Fees | Transfer Agent Fees | |||||||||||||||||||||||||||||||
Fund | Class A | Class B | Class C | Class A | Class B | Class C | Institutional | Service | ||||||||||||||||||||||||
Capital Growth Fund | $ | 1,714,440 | $ | 723,294 | $ | 387,501 | $ | 1,302,974 | $ | 137,426 | $ | 73,625 | $ | 55,055 | $ | 2,027 | ||||||||||||||||
Strategic Growth Fund | 175,564 | 47,467 | 56,983 | 133,428 | 9,019 | 10,827 | 34,782 | 7 | ||||||||||||||||||||||||
Concentrated Growth Fund | 78,314 | 775 | 2,065 | 59,518 | 147 | 392 | 18,865 | 2 | ||||||||||||||||||||||||
Growth Opportunities Fund | 1,218,366 | 444,935 | 591,737 | 925,958 | 84,538 | 112,430 | 173,268 | 1,916 | ||||||||||||||||||||||||
Small/Mid Cap Growth Fund | 5,322 | 1,048 | 2,473 | 4,045 | 199 | 470 | 1,168 | 2 |
38
Strategic | Concentrated | Growth | Small/Mid Cap | |||||||||||||
Growth | Growth | Opportunities | Growth | |||||||||||||
Fund | Fund | Fund | Fund | |||||||||||||
$ | 1,561,033 | $ | 741,467 | $ | 4,559,768 | $ | 21,119 | |||||||||
57,233 | 61,049 | 1,260,933 | 21,270 | |||||||||||||
1,618,266 | 802,516 | 5,820,701 | 42,389 | |||||||||||||
1,676,433 | 787,741 | 10,248,325 | 54,059 | |||||||||||||
280,014 | 81,154 | 2,255,038 | 8,843 | |||||||||||||
188,063 | 78,924 | 1,298,110 | 5,884 | |||||||||||||
56,828 | 56,132 | 130,584 | 39,412 | |||||||||||||
36,635 | 85,720 | 85,815 | 68,166 | |||||||||||||
24,946 | 36,664 | 58,967 | 32,504 | |||||||||||||
25,625 | 22,314 | 36,052 | 40,503 | |||||||||||||
— | — | — | 103,845 | |||||||||||||
90 | 5 | 23,954 | 26 | |||||||||||||
6,925 | 6,925 | 6,925 | 6,925 | |||||||||||||
4,932 | 12,572 | 2,778 | 35,269 | |||||||||||||
2,300,491 | 1,168,151 | 14,146,548 | 395,436 | |||||||||||||
(149,677 | ) | (187,353 | ) | (15,559 | ) | (324,115 | ) | |||||||||
2,150,814 | 980,798 | 14,130,989 | 71,321 | |||||||||||||
(532,548 | ) | (178,282 | ) | (8,310,288 | ) | (28,932 | ) | |||||||||
5,412,884 | 3,911,566 | 93,674,404 | 338,812 | |||||||||||||
(13 | ) | — | — | (2 | ) | |||||||||||
14,559,999 | 7,954,962 | 53,775,915 | 1,157,767 | |||||||||||||
(6 | ) | (5 | ) | — | — | |||||||||||
19,972,864 | 11,866,523 | 147,450,319 | 1,496,577 | |||||||||||||
$ | 19,440,316 | $ | 11,688,241 | $ | 139,140,031 | $ | 1,467,645 | |||||||||
39
Statements of Changes in Net Assets
Capital Growth Fund | Strategic Growth Fund | ||||||||||||||||||
For the | For the | For the | For the | ||||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | ||||||||||||||||
February 28, 2006 | August 31, 2005 | February 28, 2006 | August 31, 2005 | ||||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||||
From operations: | |||||||||||||||||||
Net investment income (loss) | $ | (3,942,804 | ) | $ | 3,899,185 | $ | (532,548 | ) | $ | 926,509 | |||||||||
Net realized gain (loss) from investment and foreign currency related transactions | 67,030,354 | 145,216,218 | 5,412,871 | (1,442,753 | ) | ||||||||||||||
Net increase from payments by affiliates for voluntary reimbursements | — | 1,242,336 | — | 7,335 | |||||||||||||||
Net change in unrealized gain on investments and translation of assets and liabilities denominated in foreign currencies | 53,394,456 | 25,527,787 | 14,559,993 | 29,569,999 | |||||||||||||||
Net increase in net assets resulting from operations | 116,482,006 | 175,885,526 | 19,440,316 | 29,061,090 | |||||||||||||||
Distributions to shareholders: | |||||||||||||||||||
From net investment income | |||||||||||||||||||
Class A Shares | (887,540 | ) | — | — | (30,630 | ) | |||||||||||||
Institutional Shares | (1,237,696 | ) | — | (157,294 | ) | (739,578 | ) | ||||||||||||
Service Shares | (14,681 | ) | — | — | (4 | ) | |||||||||||||
From net realized gain | |||||||||||||||||||
Class A Shares | — | — | — | — | |||||||||||||||
Class B Shares | — | — | — | — | |||||||||||||||
Class C Shares | — | — | — | — | |||||||||||||||
Institutional Shares | — | — | — | — | |||||||||||||||
Service Shares | — | — | — | — | |||||||||||||||
Total distributions to shareholders | (2,139,917 | ) | — | (157,294 | ) | (770,212 | ) | ||||||||||||
From share transactions: | |||||||||||||||||||
Proceeds from sales of shares | 143,937,470 | 308,748,058 | 97,276,400 | 70,807,904 | |||||||||||||||
Proceeds received in connection with merger | — | — | — | 42,856,797 | |||||||||||||||
Reinvestment of dividends and distributions | 1,710,331 | — | 124,896 | 592,451 | |||||||||||||||
Cost of shares repurchased | (239,077,259 | ) | (510,061,061 | ) | (103,452,089 | ) | (126,474,492 | ) | |||||||||||
Net increase (decrease) in net assets resulting from share transactions | (93,429,458 | ) | (201,313,003 | ) | (6,050,793 | ) | (12,217,340 | ) | |||||||||||
TOTAL INCREASE (DECREASE) | 20,912,631 | (25,427,477 | ) | 13,232,229 | 16,073,538 | ||||||||||||||
Net assets: | |||||||||||||||||||
Beginning of period | 1,899,247,089 | 1,924,674,566 | 341,724,166 | 325,650,628 | |||||||||||||||
End of period | $ | 1,920,159,720 | $ | 1,899,247,089 | $ | 354,956,395 | $ | 341,724,166 | |||||||||||
Accumulated undistributed (overdistributed) net investment income (loss) | $ | (1,772,944 | ) | $ | 4,309,777 | $ | (476,675 | ) | $ | 213,167 | |||||||||
(a) | Small/Mid Cap Growth Fund commenced operations on June 30, 2005. |
40
Concentrated Growth Fund | Growth Opportunities Fund | Small/Mid Cap Growth Fund | ||||||||||||||||||||||
For the | For the | For the | For the | For the | For the | |||||||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | Six Months Ended | Period Ended | |||||||||||||||||||
February 28, 2006 | August 31, 2005 | February 28, 2006 | August 31, 2005 | February 28, 2006 | August 31, 3005(a) | |||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
$ | (178,282 | ) | $ | 284,825 | $ | (8,310,288 | ) | $ | (13,419,295 | ) | $ | (28,932 | ) | $ | (1,579 | ) | ||||||||
3,911,566 | 2,997,373 | 93,674,404 | 131,149,073 | 338,810 | (3,867 | ) | ||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||
7,954,957 | 10,234,349 | 53,775,915 | 127,670,835 | 1,157,767 | 203,631 | |||||||||||||||||||
11,688,241 | 13,516,547 | 139,140,031 | 245,400,613 | 1,467,645 | 198,185 | |||||||||||||||||||
— | — | — | — | (268 | ) | — | ||||||||||||||||||
(287,210 | ) | — | — | — | (658 | ) | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||
(1,497,741 | ) | (954,804 | ) | (49,273,074 | ) | — | (26,512 | ) | — | |||||||||||||||
(3,717 | ) | (1,402 | ) | (4,687,814 | ) | — | (1,714 | ) | — | |||||||||||||||
(10,126 | ) | (4,248 | ) | (6,284,599 | ) | — | (1,179 | ) | — | |||||||||||||||
(2,216,330 | ) | (759,008 | ) | (43,875,973 | ) | — | (59,790 | ) | — | |||||||||||||||
(48 | ) | (28 | ) | (472,600 | ) | — | (109 | ) | — | |||||||||||||||
(4,015,172 | ) | (1,719,490 | ) | (104,594,060 | ) | — | (90,230 | ) | — | |||||||||||||||
41,861,665 | 70,309,159 | 556,758,222 | 958,266,779 | 22,236,722 | 5,884,565 | |||||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||||
3,733,414 | 1,579,641 | 91,602,791 | — | 87,553 | — | |||||||||||||||||||
(26,103,474 | ) | (42,256,201 | ) | (277,177,170 | ) | (378,279,259 | ) | (1,153,674 | ) | (1,016 | ) | |||||||||||||
19,491,605 | 29,632,599 | 371,183,843 | 579,987,520 | 21,170,601 | 5,883,549 | |||||||||||||||||||
27,164,674 | 41,429,656 | 405,729,814 | 825,388,133 | 22,548,016 | 6,081,734 | |||||||||||||||||||
148,454,858 | 107,025,202 | 1,887,999,238 | 1,062,611,105 | 6,081,734 | — | |||||||||||||||||||
$ | 175,619,532 | $ | 148,454,858 | $ | 2,293,729,052 | $ | 1,887,999,238 | $ | 28,629,750 | $ | 6,081,734 | |||||||||||||
$ | (160,621 | ) | $ | 304,871 | $ | (3,560,104 | ) | $ | 4,750,184 | $ | (28,940 | ) | $ | 918 | ||||||||||
41
Notes to Financial Statements
1. ORGANIZATION |
2. SIGNIFICANT ACCOUNTING POLICIES |
A. Investment Valuation — Investments in equity securities and investment companies traded on a U.S. securities exchange or the NASDAQ system are valued daily at their last sale price or official closing price on the principal exchange or system on which they are traded. If no sale occurs, such securities are valued at the last bid price. Debt securities are valued at prices supplied by independent pricing services, broker/dealer-supplied valuations or matrix pricing systems. Unlisted equity securities for which market quotations are available are valued at the last sale price on valuation date, or if no sale occurs, at the last bid price. Investments in investment companies (other than those that are exchange traded) are valued at the net asset value per share on the valuation date. Short-term debt obligations maturing in sixty days or less are valued at amortized cost, which approximates market value. Securities for which quotations are not readily available or are deemed not to reflect market value by the investment adviser are valued at fair value using methods approved by the Trust’s Board of Trustees.
B. Security Transactions and Investment Income — Security transactions are reflected as of the trade date. Realized gains and losses on sales of portfolio securities are calculated using the identified-cost basis. Dividend income is recorded on the ex-dividend date, net of foreign withholding taxes, if any, which are reduced by any amounts reclaimable by the Funds, where applicable. Interest income is recorded on the basis of interest accrued, premium amortized and discount accreted. Net investment income (other than class-specific expenses) and unrealized and realized gains or losses of the Funds are allocated daily to each class of shares of the respective Fund based upon the relative proportion of net assets of each class.
C. Expenses — Expenses incurred by the Trust that do not specifically relate to an individual Fund of the Trust are allocated to the Funds on a straight-line and/or pro rata basis depending upon the nature of the expense.
D. Offering Costs — Offering costs paid in connection with the offering of shares of the Small/Mid Cap Growth Fund are amortized on a straight-line basis over 12 months from the date of the commencement of operations.
E. Federal Taxes — It is each Fund’s policy to comply with the requirements of the Internal Revenue Code (the “Code”) applicable to regulated investment companies and to distribute each year substantially all of its investment company taxable income and capital gains to its shareholders. Accordingly, no federal tax provisions are required. Dividends and distributions
2. SIGNIFICANT ACCOUNTING POLICIES (continued) |
F. Segregation Transactions — As set forth in the prospectus, the Funds may enter into certain derivative transactions to seek to increase total return. Forward foreign currency exchange contracts, futures contracts, written options, when-issued securities and forward commitments represent examples of such transactions. As a result of entering into these transactions, the Funds are required to segregate or physically move liquid assets, on the books of their custodian or to respective counterparty, with a current value equal to or greater than the market value of the corresponding transactions.
G. Foreign Currency Translations — The books and records of the Funds are maintained in U.S. dollars. Amounts denominated in foreign currencies are translated into U.S. dollars on the following basis: (i) investment valuations, foreign currency and other assets and liabilities initially expressed in foreign currencies are converted each business day into U.S. dollars based upon current exchange rates; and (ii) purchases and sales of foreign investments, income and expenses converted into U.S. dollars based upon currency exchange rates prevailing on the respective dates of such transactions.
H. Repurchase Agreements — Repurchase agreements involve the purchase of securities subject to the seller’s agreement to repurchase them at a mutually agreed upon date and price. During the term of a repurchase agreement, the value of the underlying securities held as collateral on behalf of the Funds, including accrued interest, is required to exceed the value of the repurchase agreement, including accrued interest. If the seller defaults or becomes insolvent, realization of the collateral by each Fund may be delayed or limited and there may be a decline in the value of the collateral during the period while the Fund seeks to assert its rights. The underlying securities for all repurchase agreements are held in safekeeping at the Funds’ custodian or designated subcustodians under triparty repurchase agreements.
I. Commission Recapture — The Funds may direct portfolio trades, subject to obtaining best execution, to various brokers who have agreed to rebate a portion of the commissions generated. Such rebates are made directly to the Funds as cash payments and are included in the net realized gain (loss) on investments in the Statement of Operations.
Notes to Financial Statements (continued)
3. AGREEMENTS |
Management Fee | Average Daily | |||||||
Fund | Annual Rate | Net Assets | ||||||
Capital Growth | 1.00 | % | First $1 Billion | |||||
0.90 | Next $1 Billion | |||||||
0.80 | Over $2 Billion | |||||||
Strategic Growth | 1.00 | First $1 Billion | ||||||
0.90 | Next $1 Billion | |||||||
0.86 | Over $2 Billion | |||||||
Concentrated Growth | 1.00 | First $1 Billion | ||||||
0.90 | Next $1 Billion | |||||||
0.86 | Over $2 Billion | |||||||
Growth Opportunities | 1.00 | First $2 Billion | ||||||
0.90 | Over $2 Billion | |||||||
Small/Mid Cap Growth | 1.00 | First $2 Billion | ||||||
0.90 | Over $2 Billion | |||||||
GSAM has voluntarily agreed to limit certain “Other Expenses” of the Funds (excluding Management fees, Distribution and Service fees, Transfer Agency fees and expenses, Service Share fees, taxes, interest, brokerage fees and litigation, indemnification, shareholder meeting and other extraordinary expenses exclusive of any offset arrangements) to the extent such expenses exceed, on an annual basis, a percentage rate of the average daily net assets of each Fund. Such expense reimbursements, if any, are computed daily and paid monthly. In addition, the Funds are not obligated to reimburse GSAM for prior fiscal year expense reimbursements, if any.
3. AGREEMENTS (continued) |
Contingent Deferred | ||||||||||||
Sales Load | Sales Charge | |||||||||||
Fund | Class A | Class B | Class C | |||||||||
Capital Growth | $ | 93,100 | $ | 200 | $ | — | ||||||
Strategic Growth | 11,100 | — | — | |||||||||
Concentrated Growth | 700 | — | — | |||||||||
Growth Opportunities | 136,800 | 200 | — | |||||||||
Small/Mid Cap Growth | 13,000 | — | — | |||||||||
Goldman Sachs also serves as the Transfer Agent of the Funds for a fee. The fees charged for such transfer agency services are calculated daily and payable monthly at an annual rate as follows: 0.19% of the average daily net assets for Class A, Class B and Class C Shares and 0.04% of the average daily net assets for Institutional and Service Shares.
Management Fee | Other Expense | Custody Fee | Total Expense | |||||||||||||
Fund | Waiver | Reimbursement | Reductions | Reductions | ||||||||||||
Capital Growth | $ | — | $ | 338 | $ | 2 | $ | 340 | ||||||||
Strategic Growth | — | 149 | 1 | 150 | ||||||||||||
Concentrated Growth | — | 186 | 1 | 187 | ||||||||||||
Growth Opportunities | 15 | — | 1 | 16 | ||||||||||||
Small/Mid Cap Growth | — | 323 | 1 | 324 | ||||||||||||
At February 28, 2006, the amounts owed to affiliates of the Trust were as follows (in thousands):
Management | Distribution and | Transfer | ||||||||||||||
Fund | Fees | Service Fees | Agent Fees | Total | ||||||||||||
Capital Growth | $ | 1,407 | $ | 435 | $ | 246 | $ | 2,088 | ||||||||
Strategic Growth | 272 | 42 | 29 | 343 | ||||||||||||
Concentrated Growth | 133 | 13 | 13 | 159 | ||||||||||||
Growth Opportunities | 1,722 | 365 | 214 | 2,301 | ||||||||||||
Small/Mid Cap Growth | 18 | 5 | 5 | 28 | ||||||||||||
Notes to Financial Statements (continued)
4. PORTFOLIO SECURITIES TRANSACTIONS |
Fund | Purchases | Sales and Maturities | ||||||
Capital Growth | $ | 405,240,622 | $ | 523,241,353 | ||||
Strategic Growth | 113,398,653 | 121,793,656 | ||||||
Concentrated Growth | 59,169,439 | 46,041,957 | ||||||
Growth Opportunities | 864,766,772 | 636,188,324 | ||||||
Small/Mid Cap Growth | 20,380,094 | 2,481,088 | ||||||
For the six months ended February 28, 2006, Goldman Sachs earned approximately $54,000, $40,800, $11,200 and $102,500 of brokerage commissions from portfolio transactions executed on behalf of the Capital Growth, Strategic Growth, Concentrated Growth and Growth Opportunities Funds, respectively.
5. SECURITIES LENDING |
5. SECURITIES LENDING (continued) |
Earnings Received | ||||||||||||||||||||
Earnings of BGA | by the Funds | Amounts Payable | ||||||||||||||||||
Relating to | from Lending to | to Goldman Sachs | ||||||||||||||||||
Market Value | Cash Collateral | Securities | Goldman Sachs | Upon Return | ||||||||||||||||
of Securities | Received for Loans | Loaned for the | for the | of Securities | ||||||||||||||||
on Loan as of | Outstanding as of | Six Months ended | Six Months ended | Loaned as of | ||||||||||||||||
Fund | February 28, 2006 | February 28, 2006 | February 28, 2006 | February 28, 2006 | February 28, 2006 | |||||||||||||||
Capital Growth | $ | 19,934,226 | $ | 20,742,300 | $ | 13,885 | $ | 4,166 | $ | — | ||||||||||
Strategic Growth | 979,770 | 973,500 | 849 | — | — | |||||||||||||||
Concentrated Growth | — | — | 27 | — | — | |||||||||||||||
Growth Opportunities | 205,700,408 | 211,546,025 | 36,563 | 23,510 | 3,675,000 | |||||||||||||||
Small/Mid Cap Growth | 527,870 | 549,750 | 874 | — | — | |||||||||||||||
6. LINE OF CREDIT FACILITY |
Notes to Financial Statements (continued)
7. TAX INFORMATION |
Capital | Strategic | Concentrated | Growth | Small/Mid Cap | ||||||||||||||||
Growth | Growth | Growth | Opportunities | Growth | ||||||||||||||||
Capital loss carryforward*: | ||||||||||||||||||||
Expiring 2009 | $ | — | $ | (1,121,670 | ) | $ | — | $ | — | $ | — | |||||||||
Expiring 2010 | (53,719,899 | ) | (26,222,448 | ) | — | — | — | |||||||||||||
Expiring 2011 | (264,243,165 | ) | (32,615,744 | ) | — | — | — | |||||||||||||
Expiring 2012 | — | (13,060,848 | ) | — | — | — | ||||||||||||||
Expiring 2013 | — | (2,826,194 | ) | — | — | — | ||||||||||||||
Total capital loss carryforward | (317,963,064 | ) | (75,846,904 | ) | — | — | — | |||||||||||||
Timing differences (post October losses) | (202 | ) | (4,583,928 | ) | — | — | (3,867 | ) | ||||||||||||
* | Expiration occurs on August 31 of the year indicated. Utilization of these losses may be limited under the Internal Revenue Code. |
At February 28, 2006, the Funds’ aggregate security unrealized gains and losses based on cost for U.S. federal income tax purposes were as follows:
Small/Mid Cap | ||||||||||||||||||||
Capital Growth | Strategic Growth | Concentrated Growth | Growth Opportunities | Growth | ||||||||||||||||
Tax Cost | $ | 1,548,642,582 | $ | 310,156,201 | $ | 152,073,253 | $ | 2,207,501,061 | $ | 26,298,761 | ||||||||||
Gross unrealized gain | 417,205,627 | 54,342,897 | 24,431,266 | 346,855,514 | 1,764,765 | |||||||||||||||
Gross unrealized loss | (22,037,076 | ) | (5,030,947 | ) | (2,110,407 | ) | (54,953,412 | ) | (403,367 | ) | ||||||||||
Net unrealized security gain | $ | 395,168,551 | $ | 49,311,950 | $ | 22,320,859 | $ | 291,902,102 | $ | 1,361,398 | ||||||||||
The difference between book-basis and tax-basis unrealized appreciation (depreciation) is attributable to wash sales and differences related to the return of capital distributions from underlying fund investments.
8. OTHER MATTERS |
Legal Proceedings — Purported class and derivative action lawsuits were filed in April and May 2004 in the United States District Court for the Southern District of New York against the Goldman Sachs Group, Inc. (“GSG”), GSAM and certain related parties, including certain Goldman Sachs Funds including these funds, and the Trustees and Officers of the Trust. In June 2004, these lawsuits were consolidated into one action and in November 2004 a consolidated and amended complaint was filed against GSG, GSAM, Goldman Sachs Asset Management International (“GSAMI”), Goldman Sachs and certain related parties including certain Goldman Sachs Funds and the Trustees and Officers of the Trust. Plaintiffs filed a second amended consolidated complaint on April 15, 2005. The second amended consolidated complaint alleges violations of the Act and the Investment Advisers Act of 1940. The complaint also asserts claims involving common law breach of fiduciary duty and unjust enrichment. The complaint alleges, among other things, that between April 2, 1999 and January 9, 2004 (the “Class Period”), GSAM and other defendants made improper and excessive brokerage commission and other payments to brokers that sold shares of the Goldman Sachs Funds and omitted statements of fact in registration statements and reports filed pursuant to the Act which were necessary to prevent such registration statements and reports from being materially false and misleading. The complaint further alleges that the Goldman Sachs Funds paid excessive and improper advisory fees to Goldman Sachs. The complaint also alleges that GSAM and GSAMI used 12b-1 fees for improper purposes and made improper use of soft dollars. The complaint further alleges that the Trust’s Officers and Trustees breached their fiduciary duties in connection with the foregoing. On January 13, 2006, all claims against the defendants were dismissed by the U.S. District Court. On February 22, 2006, the plaintiffs appealed this decision.
Mergers and Reorganizations — At a meeting held on August 5, 2004, the Board of Trustees of the Trust approved an Agreement and Plan of Organization (“the Agreement”) providing for the tax-free acquisition of the Golden Oak Growth Portfolio by the Goldman Sachs Strategic Growth Fund. The acquisition was completed on September 28, 2004.
Notes to Financial Statements (continued)
8. OTHER MATTERS (continued) |
Exchanged Shares | Acquired Fund’s | |||||||||||
of Survivor | Value of | Shares Outstanding | ||||||||||
Survivor/Acquired Fund | Issued | Exchanged Shares | as of September 28, 2004 | |||||||||
Goldman Sachs Strategic Growth Class A/ Golden Oak Growth Class A | 682,200 | $ | 5,491,389 | 723,164 | ||||||||
Goldman Sachs Strategic Growth Institutional Class/ Golden Oak Growth Institutional Class | 4,540,293 | 37,365,408 | 4,719,198 | |||||||||
The following chart shows the Survivor Fund’s and Acquired Fund’s aggregate net assets (immediately before and after the completion of the acquisition) and the Acquired Fund’s unrealized appreciation and capital loss carryforwards. Utilization of the Acquired Fund’s capital loss carryforward may be limited under the Internal Revenue Code.
Survivor Fund’s | ||||||||||||||||||||
Survivor Fund’s | Acquired Fund’s | Aggregate | ||||||||||||||||||
Aggregate | Aggregate | Acquired | Acquired | Net Assets | ||||||||||||||||
Net Assets | Net Assets | Fund’s | Fund’s | immediately | ||||||||||||||||
Before | Before | Unrealized | Capital Loss | After | ||||||||||||||||
Survivor/Acquired Fund | Acquisition | Acquisition | Appreciation | Carryforward | Acquisition | |||||||||||||||
Goldman Sachs Strategic Growth/ Golden Oak Growth | $ | 329,499,240 | $ | 42,856,797 | $ | 909,037 | $ | (31,400,410 | ) | $ | 372,356,037 | |||||||||
9. SUMMARY OF SHARE TRANSACTIONS |
Capital Growth | Strategic Growth | |||||||||||||||||||||||||||||||
For the Six Months Ended | For the Year Ended | For the Six Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
February 28, 2006 | August 31, 2005 | February 28, 2006 | August 31, 2005 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Shares sold | 4,959,772 | $ | 101,704,294 | 10,905,763 | $ | 210,332,623 | 2,463,808 | $ | 22,284,854 | 4,240,659 | $ | 35,827,362 | ||||||||||||||||||||
Shares issued in connection with merger | — | — | — | — | — | — | 682,200 | 5,491,389 | ||||||||||||||||||||||||
Reinvestments of distributions | 40,542 | 842,067 | — | — | — | — | 2,512 | 21,829 | ||||||||||||||||||||||||
Shares converted from Class B(a) | 295,118 | 5,967,949 | 224,156 | 4,294,865 | 14,955 | 131,827 | 5,653 | 46,699 | ||||||||||||||||||||||||
Shares repurchased | (7,533,735 | ) | (154,579,476 | ) | (16,027,832 | ) | (309,560,258 | ) | (6,513,125 | ) | (57,073,377 | ) | (7,604,177 | ) | (63,459,367 | ) | ||||||||||||||||
(2,238,303 | ) | (46,065,166 | ) | (4,897,913 | ) | (94,932,770 | ) | (4,034,362 | ) | (34,656,696 | ) | (2,673,153 | ) | (22,072,088 | ) | |||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||
Shares sold | 99,517 | 1,895,090 | 385,427 | 6,915,450 | 32,094 | 273,749 | 76,841 | 628,161 | ||||||||||||||||||||||||
Reinvestments of distributions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Shares converted to Class A (a) | (318,133 | ) | (5,967,949 | ) | (240,768 | ) | (4,294,865 | ) | (15,697 | ) | (131,827 | ) | (5,904 | ) | (46,699 | ) | ||||||||||||||||
Shares repurchased | (1,588,255 | ) | (30,154,997 | ) | (3,021,247 | ) | (54,340,154 | ) | (200,511 | ) | (1,709,413 | ) | (336,226 | ) | (2,731,825 | ) | ||||||||||||||||
(1,806,871 | ) | (34,227,856 | ) | (2,876,588 | ) | (51,719,569 | ) | (184,114 | ) | (1,567,491 | ) | (265,289 | ) | (2,150,363 | ) | |||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Shares sold | 297,078 | 5,651,012 | 770,579 | 13,848,461 | 149,461 | 1,267,250 | 321,254 | 2,614,812 | ||||||||||||||||||||||||
Reinvestments of distributions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Shares repurchased | (828,440 | ) | (15,754,859 | ) | (1,617,451 | ) | (29,050,574 | ) | (246,768 | ) | (2,120,490 | ) | (436,843 | ) | (3,540,426 | ) | ||||||||||||||||
(531,362 | ) | (10,103,847 | ) | (846,872 | ) | (15,202,113 | ) | (97,307 | ) | (853,240 | ) | (115,589 | ) | (925,614 | ) | |||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||||||
Shares sold | 1,555,564 | 32,963,575 | 3,618,793 | 71,778,077 | 7,963,890 | 73,449,116 | 3,690,890 | 31,671,888 | ||||||||||||||||||||||||
Shares issued in connection with merger | — | — | — | — | — | — | 4,540,293 | 37,365,408 | ||||||||||||||||||||||||
Reinvestments of distributions | 40,112 | 855,575 | — | — | 13,430 | 124,896 | 64,477 | 570,622 | ||||||||||||||||||||||||
Shares repurchased | (1,750,385 | ) | (36,990,959 | ) | (5,785,592 | ) | (114,781,519 | ) | (4,569,402 | ) | (42,297,291 | ) | (6,541,414 | ) | (56,614,144 | ) | ||||||||||||||||
(154,709 | ) | (3,171,809 | ) | (2,166,799 | ) | (43,003,442 | ) | 3,407,918 | 31,276,721 | 1,754,246 | 12,993,774 | |||||||||||||||||||||
Service Shares | ||||||||||||||||||||||||||||||||
Shares sold | 84,770 | 1,723,499 | 309,911 | 5,873,447 | 161 | 1,431 | 7,907 | 65,681 | ||||||||||||||||||||||||
Reinvestments of distributions | 617 | 12,689 | — | — | — | — | — | — | ||||||||||||||||||||||||
Shares repurchased | (78,127 | ) | (1,596,968 | ) | (121,799 | ) | (2,328,556 | ) | (28,605 | ) | (251,518 | ) | (14,841 | ) | (128,730 | ) | ||||||||||||||||
7,260 | 139,220 | 188,112 | 3,544,891 | (28,444 | ) | (250,087 | ) | (6,934 | ) | (63,049 | ) | |||||||||||||||||||||
NET INCREASE (DECREASE) | (4,723,985 | ) | $ | (93,429,458 | ) | (10,600,060 | ) | $ | (201,313,003 | ) | (936,309 | ) | $ | (6,050,793 | ) | (1,306,719 | ) | $ | (12,217,340 | ) | ||||||||||||
(a) | Class B Shares automatically convert into Class A Shares at the end of the calendar quarter that is eight years after the initial purchase date of either the Fund or another Goldman Sachs Fund. |
Notes to Financial Statements (continued)
9. SUMMARY OF SHARE TRANSACTIONS (continued) |
Concentrated Growth | Growth Opportunities | |||||||||||||||||||||||||||||||
For the Six Months Ended | For the Year Ended | For the Six Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
February 28, 2006 | August 31, 2005 | February 28, 2006 | August 31, 2005 | |||||||||||||||||||||||||||||
Shares | Dollars | Shares | Dollars | Shares | Dollars | Shares | Dollars | |||||||||||||||||||||||||
Class A Shares | ||||||||||||||||||||||||||||||||
Shares sold | 843,789 | $ | 11,091,573 | 1,837,881 | $ | 22,488,908 | 8,248,253 | $ | 182,507,143 | 19,358,328 | $ | 405,609,610 | ||||||||||||||||||||
Shares issued in connection with merger | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestments of distributions | 106,245 | 1,389,688 | 69,024 | 858,655 | 2,114,580 | 45,970,964 | — | — | ||||||||||||||||||||||||
Shares converted from Class B(a) | — | — | 223 | 2,822 | 24,352 | 528,623 | 37,348 | 784,427 | ||||||||||||||||||||||||
Shares repurchased | (825,667 | ) | (10,772,965 | ) | (2,243,907 | ) | (27,474,246 | ) | (6,171,901 | ) | (136,495,313 | ) | (10,373,234 | ) | (215,596,076 | ) | ||||||||||||||||
124,367 | 1,708,296 | (336,779 | ) | (4,123,861 | ) | 4,215,284 | 92,511,902 | 9,022,442 | 190,797,961 | |||||||||||||||||||||||
Class B Shares | ||||||||||||||||||||||||||||||||
Shares sold | 10,766 | 137,384 | 2,503 | 29,795 | 205,404 | 4,338,552 | 472,532 | 9,442,842 | ||||||||||||||||||||||||
Reinvestments of distributions | 203 | 2,603 | 86 | 1,048 | 191,738 | 3,986,244 | — | — | ||||||||||||||||||||||||
Shares converted to Class A (a) | — | — | (226 | ) | (2,822 | ) | (25,419 | ) | (528,623 | ) | (38,815 | ) | (784,427 | ) | ||||||||||||||||||
Shares repurchased | (1,047 | ) | (13,056 | ) | (1,508 | ) | (17,833 | ) | (480,311 | ) | (10,167,014 | ) | (936,639 | ) | (18,737,466 | ) | ||||||||||||||||
9,922 | 126,931 | 855 | 10,188 | (108,588 | ) | (2,370,841 | ) | (502,922 | ) | (10,079,051 | ) | |||||||||||||||||||||
Class C Shares | ||||||||||||||||||||||||||||||||
Shares sold | 2,782 | 35,581 | 15,677 | 188,143 | 1,099,919 | 23,102,954 | 2,322,801 | 46,445,349 | ||||||||||||||||||||||||
Reinvestments of distributions | 731 | 9,301 | 343 | 4,193 | 215,290 | 4,443,583 | — | — | ||||||||||||||||||||||||
Shares repurchased | (706 | ) | (8,787 | ) | (5,220 | ) | (62,313 | ) | (628,095 | ) | (13,226,438 | ) | (885,316 | ) | (17,586,556 | ) | ||||||||||||||||
2,807 | 36,095 | 10,800 | 130,023 | 687,114 | 14,320,099 | 1,437,485 | 28,858,793 | |||||||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||||||||
Shares sold | 2,320,362 | 30,597,052 | 3,910,548 | 47,602,138 | 14,979,454 | 341,518,261 | 22,950,565 | 488,741,156 | ||||||||||||||||||||||||
Shares issued in connection with merger | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Reinvestments of distributions | 176,516 | 2,331,774 | 57,029 | 715,718 | 1,658,823 | 37,041,517 | — | — | ||||||||||||||||||||||||
Shares repurchased | (1,162,716 | ) | (15,308,590 | ) | (1,184,968 | ) | (14,701,635 | ) | (5,036,949 | ) | (115,342,495 | ) | (5,780,309 | ) | (124,540,094 | ) | ||||||||||||||||
1,334,162 | 17,620,236 | 2,782,609 | 33,616,221 | 11,601,328 | 263,217,283 | 17,170,256 | 364,201,062 | |||||||||||||||||||||||||
Service Shares | ||||||||||||||||||||||||||||||||
Shares sold | 5 | 75 | 14 | 175 | 217,175 | 4,762,204 | 379,877 | 8,027,822 | ||||||||||||||||||||||||
Reinvestments of distributions | 4 | 48 | 2 | 27 | 7,443 | 160,483 | — | — | ||||||||||||||||||||||||
Shares repurchased | (6 | ) | (76 | ) | (13 | ) | (174 | ) | (64,672 | ) | (1,417,287 | ) | (85,389 | ) | (1,819,067 | ) | ||||||||||||||||
3 | 47 | 3 | 28 | 159,946 | 3,505,400 | 294,488 | 6,208,755 | |||||||||||||||||||||||||
NET INCREASE (DECREASE) | 1,471,261 | $ | 19,491,605 | 2,457,488 | $ | 29,632,599 | 16,555,084 | $ | 371,183,843 | 27,421,749 | $ | 579,987,520 | ||||||||||||||||||||
(a) | Class B Shares automatically convert into Class A Shares at the end of the calendar quarter that is eight years after the initial purchase date of either the Fund or another Goldman Sachs Fund. |
9. SUMMARY OF SHARE TRANSACTIONS (continued) |
Small/Mid Cap Growth | ||||||||||||||||
For the Six Months Ended | For the Period Ended | |||||||||||||||
February 28, 2006 | August 31, 2005(b) | |||||||||||||||
Shares | Dollars | Shares | Dollars | |||||||||||||
Class A Shares | ||||||||||||||||
Shares sold | 1,563,582 | $ | 17,180,758 | 54,773 | $ | 565,210 | ||||||||||
Reinvestments of distributions | 2,339 | 24,693 | — | — | ||||||||||||
Shares converted from Class B(a) | — | — | — | — | ||||||||||||
Shares repurchased | (101,063 | ) | (1,121,910 | ) | (97 | ) | (1,016 | ) | ||||||||
1,464,858 | 16,083,541 | 54,676 | 564,194 | |||||||||||||
Class B Shares | ||||||||||||||||
Shares sold | 55,094 | 601,186 | 6,624 | 68,115 | ||||||||||||
Reinvestments of Distributions | 163 | 1,714 | — | — | ||||||||||||
Shares converted to Class A(a) | — | — | — | — | ||||||||||||
Shares repurchased | (463 | ) | (5,056 | ) | — | — | ||||||||||
54,794 | 597,844 | 6,624 | 68,115 | |||||||||||||
Class C Shares | ||||||||||||||||
Shares sold | 330,195 | 3,680,914 | 1,848 | 18,883 | ||||||||||||
Reinvestments of Distributions | 56 | 588 | — | — | ||||||||||||
Shares repurchased | (359 | ) | (3,776 | ) | — | — | ||||||||||
329,892 | 3,677,726 | 1,848 | 18,883 | |||||||||||||
Institutional Shares | ||||||||||||||||
Shares sold | 71,878 | 773,864 | 521,716 | 5,222,357 | ||||||||||||
Reinvestments of distributions | 5,730 | 60,449 | — | — | ||||||||||||
Shares repurchased | (2,152 | ) | (22,932 | ) | — | — | ||||||||||
75,456 | 811,381 | 521,716 | 5,222,357 | |||||||||||||
Service Shares | ||||||||||||||||
Shares sold | — | — | 1,000 | 10,000 | ||||||||||||
Reinvestments of distributions | 10 | 109 | — | — | ||||||||||||
Shares repurchased | — | — | — | — | ||||||||||||
10 | 109 | 1,000 | 10,000 | |||||||||||||
NET INCREASE (DECREASE) | 1,925,010 | $ | 21,170,601 | 585,864 | $ | 5,883,549 | ||||||||||
(a) | Class B Shares automatically convert into Class A Shares at the end of the calendar quarter that is eight years after the initial purchase date of either the Fund or another Goldman Sachs Fund. |
(b) | Commencement date of operations for the Small/Mid Cap Growth Fund was June 30, 2005 for all share classes. |
Financial Highlights
Income (loss) from | Distributions | |||||||||||||||||||||||||||
investment operations | to shareholders | |||||||||||||||||||||||||||
Net asset | ||||||||||||||||||||||||||||
value, | Net | Net realized | Total from | From net | From net | |||||||||||||||||||||||
beginning | investment | and unrealized | investment | investment | realized | |||||||||||||||||||||||
Year - Share Class | of period | income (loss)(a) | gain (loss) | operations | income | gains | ||||||||||||||||||||||
FOR THE SIX MONTHS ENDED FEBRUARY 28, (Unaudited) | ||||||||||||||||||||||||||||
2006 - A | $ | 20.06 | $ | (0.04 | ) | $ | 1.31 | $ | 1.27 | $ | (0.01 | ) | $ | — | ||||||||||||||
2006 - B | 18.63 | (0.11 | ) | 1.21 | 1.10 | — | — | |||||||||||||||||||||
2006 - C | 18.60 | (0.11 | ) | 1.22 | 1.11 | — | — | |||||||||||||||||||||
2006 - Institutional | 20.65 | — | (c) | 1.35 | 1.35 | (0.09 | ) | — | ||||||||||||||||||||
2006 - Service | 19.86 | (0.05 | ) | 1.30 | 1.25 | (0.03 | ) | — | ||||||||||||||||||||
FOR THE YEARS ENDED AUGUST 31, | ||||||||||||||||||||||||||||
2005 - A | 18.31 | 0.05 | (e) | 1.70 | (f) | 1.75 | — | — | ||||||||||||||||||||
2005 - B | 17.13 | (0.09 | )(e) | 1.59 | (f) | 1.50 | — | — | ||||||||||||||||||||
2005 - C | 17.10 | (0.09 | )(e) | 1.59 | (f) | 1.50 | — | — | ||||||||||||||||||||
2005 - Institutional | 18.77 | 0.13 | (e) | 1.75 | (f) | 1.88 | — | — | ||||||||||||||||||||
2005 - Service | 18.14 | 0.01 | (e) | 1.71 | (f) | 1.72 | — | — | ||||||||||||||||||||
2004 - A | 17.07 | (0.05 | ) | 1.29 | 1.24 | — | — | |||||||||||||||||||||
2004 - B | 16.09 | (0.17 | ) | 1.21 | 1.04 | — | — | |||||||||||||||||||||
2004 - C | 16.07 | (0.17 | ) | 1.20 | 1.03 | — | — | |||||||||||||||||||||
2004 - Institutional | 17.44 | 0.03 | 1.30 | 1.33 | — | — | ||||||||||||||||||||||
2004 - Service | 16.94 | (0.07 | ) | 1.27 | 1.20 | — | — | |||||||||||||||||||||
2003 - A | 15.44 | — | (c) | 1.63 | 1.63 | — | — | |||||||||||||||||||||
2003 - B | 14.66 | (0.11 | ) | 1.54 | 1.43 | — | — | |||||||||||||||||||||
2003 - C | 14.64 | (0.11 | ) | 1.54 | 1.43 | — | — | |||||||||||||||||||||
2003 - Institutional | 15.71 | 0.06 | 1.67 | 1.73 | — | — | ||||||||||||||||||||||
2003 - Service | 15.33 | (0.01 | ) | 1.62 | 1.61 | — | — | |||||||||||||||||||||
2002 - A | 19.76 | (0.05 | ) | (4.24 | ) | (4.29 | ) | — | (0.03 | ) | ||||||||||||||||||
2002 - B | 18.90 | (0.18 | ) | (4.03 | ) | (4.21 | ) | — | (0.03 | ) | ||||||||||||||||||
2002 - C | 18.88 | (0.18 | ) | (4.03 | ) | (4.21 | ) | — | (0.03 | ) | ||||||||||||||||||
2002 - Institutional | 20.02 | 0.02 | (4.30 | ) | (4.28 | ) | — | (0.03 | ) | |||||||||||||||||||
2002 - Service | 19.63 | (0.07 | ) | (4.20 | ) | (4.27 | ) | — | (0.03 | ) | ||||||||||||||||||
2001 - A | 28.95 | (0.06 | ) | (7.23 | ) | (7.29 | ) | — | (1.90 | ) | ||||||||||||||||||
2001 - B | 27.99 | (0.23 | ) | (6.96 | ) | (7.19 | ) | — | (1.90 | ) | ||||||||||||||||||
2001 - C | 27.94 | (0.22 | ) | (6.94 | ) | (7.16 | ) | — | (1.90 | ) | ||||||||||||||||||
2001 - Institutional | 29.19 | 0.03 | (7.30 | ) | (7.27 | ) | — | (1.90 | ) | |||||||||||||||||||
2001 - Service | 28.81 | (0.08 | ) | (7.20 | ) | (7.28 | ) | — | (1.90 | ) | ||||||||||||||||||
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total return would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than one full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Amount is less than $0.005 per share. |
(d) | Annualized. |
(e) | Reflects income recognized from special dividends which amounted to $0.11 per share and 0.56% of average net assets. |
(f) | Reflects an increase of $0.01 due to payments by affiliates during the period to reimburse certain security claims. |
54
Ratios assuming no | ||||||||||||||||||||||||||||||||||
expense reductions | ||||||||||||||||||||||||||||||||||
Ratio of | Ratio of | |||||||||||||||||||||||||||||||||
Net assets, | Ratio of | net investment | Ratio of | net investment | ||||||||||||||||||||||||||||||
Net asset | end of | net expenses | income (loss) | total expenses | income (loss) | Portfolio | ||||||||||||||||||||||||||||
value, end | Total | period | to average | to average | to average | to average | turnover | |||||||||||||||||||||||||||
of period | return(b) | (in 000s) | net assets | net assets | net assets | net assets | rate | |||||||||||||||||||||||||||
$ | 21.32 | 6.35 | % | $ | 1,412,885 | 1.40 | %(d) | (0.39 | )% (d) | 1.43 | %(d) | (0.42 | )% (d) | 21 | % | |||||||||||||||||||
19.73 | 5.90 | 134,472 | 2.15 | (d) | (1.15 | )(d) | 2.18 | (d) | (1.18 | )(d) | 21 | |||||||||||||||||||||||
19.71 | 5.97 | 75,501 | 2.15 | (d) | (1.14 | )(d) | 2.18 | (d) | (1.17 | )(d) | 21 | |||||||||||||||||||||||
21.91 | 6.57 | 286,686 | 1.00 | (d) | 0.01 | (d) | 1.03 | (d) | (0.02 | )(d) | 21 | |||||||||||||||||||||||
21.08 | 6.29 | 10,617 | 1.50 | (d) | (0.49 | )(d) | 1.53 | (d) | (0.52 | )(d) | 21 | |||||||||||||||||||||||
20.06 | 9.56 | 1,374,264 | 1.39 | 0.24 | (e) | 1.45 | 0.18 | (e) | 34 | |||||||||||||||||||||||||
18.63 | 8.76 | 160,575 | 2.14 | (0.48 | )(e) | 2.20 | (0.54 | )(e) | 34 | |||||||||||||||||||||||||
18.60 | 8.77 | 81,132 | 2.14 | (0.49 | )(e) | 2.20 | (0.55 | )(e) | 34 | |||||||||||||||||||||||||
20.65 | 10.02 | 273,418 | 0.99 | 0.68 | (e) | 1.05 | 0.62 | (e) | 34 | |||||||||||||||||||||||||
19.86 | 9.48 | 9,858 | 1.49 | 0.04 | (e) | 1.55 | (0.02 | )(e) | 34 | |||||||||||||||||||||||||
18.31 | 7.26 | 1,343,848 | 1.39 | (0.26 | ) | 1.47 | (0.34 | ) | 43 | |||||||||||||||||||||||||
17.13 | 6.46 | 196,910 | 2.14 | (1.01 | ) | 2.22 | (1.09 | ) | 43 | |||||||||||||||||||||||||
17.10 | 6.41 | 89,086 | 2.14 | (1.01 | ) | 2.22 | (1.09 | ) | 43 | |||||||||||||||||||||||||
18.77 | 7.63 | 289,239 | 0.99 | 0.14 | 1.07 | 0.06 | 43 | |||||||||||||||||||||||||||
18.14 | 7.08 | 5,592 | 1.49 | (0.36 | ) | 1.57 | (0.44 | ) | 43 | |||||||||||||||||||||||||
17.07 | 10.56 | 1,483,768 | 1.40 | 0.00 | 1.48 | (0.08 | ) | 17 | ||||||||||||||||||||||||||
16.09 | 9.75 | 226,663 | 2.15 | (0.74 | ) | 2.23 | (0.82 | ) | 17 | |||||||||||||||||||||||||
16.07 | 9.77 | 100,027 | 2.15 | (0.74 | ) | 2.23 | (0.82 | ) | 17 | |||||||||||||||||||||||||
17.44 | 11.01 | 303,840 | 1.00 | 0.41 | 1.08 | 0.33 | 17 | |||||||||||||||||||||||||||
16.94 | 10.50 | 5,985 | 1.50 | (0.10 | ) | 1.58 | (0.18 | ) | 17 | |||||||||||||||||||||||||
15.44 | (21.74 | ) | 1,388,868 | 1.43 | (0.29 | ) | 1.47 | (0.33 | ) | 11 | ||||||||||||||||||||||||
14.66 | (22.31 | ) | 238,335 | 2.18 | (1.04 | ) | 2.22 | (1.08 | ) | 11 | ||||||||||||||||||||||||
14.64 | (22.33 | ) | 101,783 | 2.18 | (1.04 | ) | 2.22 | (1.08 | ) | 11 | ||||||||||||||||||||||||
15.71 | (21.41 | ) | 316,020 | 1.03 | 0.11 | 1.07 | 0.07 | 11 | ||||||||||||||||||||||||||
15.33 | (21.78 | ) | 5,976 | 1.53 | (0.39 | ) | 1.57 | (0.43 | ) | 11 | ||||||||||||||||||||||||
19.76 | (26.48 | ) | 2,001,259 | 1.44 | (0.25 | ) | 1.46 | (0.27 | ) | 18 | ||||||||||||||||||||||||
18.90 | (27.06 | ) | 338,673 | 2.19 | (1.00 | ) | 2.21 | (1.02 | ) | 18 | ||||||||||||||||||||||||
18.88 | (27.00 | ) | 127,839 | 2.19 | (1.00 | ) | 2.21 | (1.02 | ) | 18 | ||||||||||||||||||||||||
20.02 | (26.18 | ) | 444,195 | 1.04 | 0.15 | 1.06 | 0.13 | 18 | ||||||||||||||||||||||||||
19.63 | (26.58 | ) | 8,979 | 1.54 | (0.35 | ) | 1.56 | (0.37 | ) | 18 | ||||||||||||||||||||||||
Financial Highlights
Income (loss) from | Distributions | |||||||||||||||||||||||||||
investment operations | to shareholders | |||||||||||||||||||||||||||
Net asset | ||||||||||||||||||||||||||||
value, | Net | Net realized | Total from | From net | From net | |||||||||||||||||||||||
beginning | investment | and unrealized | investment | investment | realized | |||||||||||||||||||||||
Year - Share Class | of period | income (loss)(a) | gain (loss) | operations | income | gains | ||||||||||||||||||||||
FOR THE SIX MONTHS ENDED FEBRUARY 28, (Unaudited) | ||||||||||||||||||||||||||||
2006 - A | $ | 8.75 | $ | (0.02 | ) | $ | 0.56 | $ | 0.54 | $ | — | $ | — | |||||||||||||||
2006 - B | 8.35 | (0.05 | ) | 0.53 | 0.48 | — | — | |||||||||||||||||||||
2006 - C | 8.36 | (0.05 | ) | 0.53 | 0.48 | — | — | |||||||||||||||||||||
2006 - Institutional | 8.94 | — | (d) | 0.57 | 0.57 | (0.01 | ) | — | ||||||||||||||||||||
2006 - Service | 8.77 | (0.02 | ) | 0.57 | 0.55 | — | — | |||||||||||||||||||||
FOR THE YEARS ENDED AUGUST 31, | ||||||||||||||||||||||||||||
2005 - A | 8.07 | 0.01 | (e) | 0.67 | 0.68 | — | (d) | — | ||||||||||||||||||||
2005 - B | 7.76 | (0.05 | )(e) | 0.64 | 0.59 | — | — | |||||||||||||||||||||
2005 - C | 7.78 | (0.05 | )(e) | 0.63 | 0.58 | — | — | |||||||||||||||||||||
2005 - Institutional | 8.25 | 0.05 | (e) | 0.68 | 0.73 | (0.04 | ) | — | ||||||||||||||||||||
2005 - Service | 8.10 | — | (d)(e) | 0.67 | 0.67 | — | (d) | — | ||||||||||||||||||||
2004 - A | 7.79 | (0.04 | ) | 0.32 | 0.28 | — | — | |||||||||||||||||||||
2004 - B | 7.55 | (0.10 | ) | 0.31 | 0.21 | — | — | |||||||||||||||||||||
2004 - C | 7.56 | (0.10 | ) | 0.32 | 0.22 | — | — | |||||||||||||||||||||
2004 - Institutional | 7.93 | (0.01 | ) | 0.33 | 0.32 | — | — | |||||||||||||||||||||
2004 - Service | 7.82 | (0.05 | ) | 0.33 | 0.28 | — | — | |||||||||||||||||||||
2003 - A | 6.95 | (0.03 | ) | 0.87 | 0.84 | — | — | |||||||||||||||||||||
2003 - B | 6.79 | (0.08 | ) | 0.84 | 0.76 | — | — | |||||||||||||||||||||
2003 - C | 6.80 | (0.09 | ) | 0.85 | 0.76 | — | — | |||||||||||||||||||||
2003 - Institutional | 7.05 | (0.01 | ) | 0.89 | 0.88 | — | — | |||||||||||||||||||||
2003 - Service | 6.97 | (0.03 | ) | 0.88 | 0.85 | — | — | |||||||||||||||||||||
2002 - A | 9.22 | (0.06 | ) | (2.21 | ) | (2.27 | ) | — | — | (d) | ||||||||||||||||||
2002 - B | 9.07 | (0.12 | ) | (2.16 | ) | (2.28 | ) | — | — | (d) | ||||||||||||||||||
2002 - C | 9.08 | (0.12 | ) | (2.16 | ) | (2.28 | ) | — | — | (d) | ||||||||||||||||||
2002 - Institutional | 9.30 | (0.02 | ) | (2.23 | ) | (2.25 | ) | — | — | (d) | ||||||||||||||||||
2002 - Service | 9.23 | (0.05 | ) | (2.21 | ) | (2.26 | ) | — | — | (d) | ||||||||||||||||||
2001 - A | 12.52 | (0.06 | ) | (3.24 | ) | (3.30 | ) | — | — | |||||||||||||||||||
2001 - B | 12.40 | (0.13 | ) | (3.20 | ) | (3.33 | ) | — | — | |||||||||||||||||||
2001 - C | 12.42 | (0.13 | ) | (3.21 | ) | (3.34 | ) | — | — | |||||||||||||||||||
2001 - Institutional | 12.58 | (0.02 | ) | (3.26 | ) | (3.28 | ) | — | — | |||||||||||||||||||
2001 - Service | 12.52 | (0.04 | ) | (3.25 | ) | (3.29 | ) | — | — | |||||||||||||||||||
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total return would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than one full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Amount is less than $0.005 per share. |
(e) | Reflects income recognized from special dividends which amounted to $0.05 per share and 0.57% of average net assets. |
(f) | Amount is less than 0.005%. |
56
Ratios assuming no | ||||||||||||||||||||||||||||||||||
expense reductions | ||||||||||||||||||||||||||||||||||
Ratio of | Ratio of | |||||||||||||||||||||||||||||||||
Net assets, | Ratio of | net investment | Ratio of | net investment | ||||||||||||||||||||||||||||||
Net asset | end of | net expenses | income (loss) | total expenses | income (loss) | Portfolio | ||||||||||||||||||||||||||||
value, end | Total | period | to average | to average | to average | to average | turnover | |||||||||||||||||||||||||||
of period | return(b) | (in 000s) | net assets | net assets | net assets | net assets | rate | |||||||||||||||||||||||||||
$ | 9.29 | 6.06 | % | $ | 136,959 | 1.44 | %(c) | (0.48 | )% (c) | 1.53 | %(c) | (0.57 | )% (c) | 34 | % | |||||||||||||||||||
8.83 | 5.75 | 9,155 | 2.19 | (c) | (1.23 | )(c) | 2.28 | (c) | (1.32 | )(c) | 34 | |||||||||||||||||||||||
8.84 | 5.74 | 11,187 | 2.19 | (c) | (1.23 | )(c) | 2.28 | (c) | (1.32 | )(c) | 34 | |||||||||||||||||||||||
9.50 | 6.36 | 197,643 | 1.04 | (c) | (0.07 | )(c) | 1.14 | (c) | (0.17 | )(c) | 34 | |||||||||||||||||||||||
9.32 | 6.27 | 12 | 1.43 | (c) | (0.37 | )(c) | 1.52 | (c) | (0.46 | )(c) | 34 | |||||||||||||||||||||||
8.75 | 8.44 | 164,330 | 1.44 | 0.12 | (e) | 1.57 | (0.01 | )(e) | 46 | |||||||||||||||||||||||||
8.35 | 7.60 | 10,195 | 2.19 | (0.62 | )(e) | 2.32 | (0.75 | )(e) | 46 | |||||||||||||||||||||||||
8.36 | 7.46 | 11,392 | 2.19 | (0.64 | )(e) | 2.32 | (0.77 | )(e) | 46 | |||||||||||||||||||||||||
8.94 | 8.82 | 155,546 | 1.04 | 0.54 | (e) | 1.17 | 0.41 | (e) | 46 | |||||||||||||||||||||||||
8.77 | 8.27 | 261 | 1.54 | 0.00 | (e)(f) | 1.67 | (0.13 | )(e) | 46 | |||||||||||||||||||||||||
8.07 | 3.59 | 173,243 | 1.44 | (0.47 | ) | 1.55 | (0.58 | ) | 19 | |||||||||||||||||||||||||
7.76 | 2.78 | 11,537 | 2.19 | (1.22 | ) | 2.30 | (1.33 | ) | 19 | |||||||||||||||||||||||||
7.78 | 2.91 | 11,491 | 2.19 | (1.22 | ) | 2.30 | (1.33 | ) | 19 | |||||||||||||||||||||||||
8.25 | 4.04 | 129,083 | 1.04 | (0.07 | ) | 1.15 | (0.18 | ) | 19 | |||||||||||||||||||||||||
8.10 | 3.58 | 297 | 1.54 | (0.58 | ) | 1.65 | (0.69 | ) | 19 | |||||||||||||||||||||||||
7.79 | 12.09 | 146,867 | 1.45 | (0.49 | ) | 1.62 | (0.66 | ) | 14 | |||||||||||||||||||||||||
7.55 | 11.19 | 11,452 | 2.20 | (1.24 | ) | 2.37 | (1.41 | ) | 14 | |||||||||||||||||||||||||
7.56 | 11.18 | 8,979 | 2.20 | (1.24 | ) | 2.37 | (1.41 | ) | 14 | |||||||||||||||||||||||||
7.93 | 12.48 | 93,806 | 1.05 | (0.09 | ) | 1.22 | (0.26 | ) | 14 | |||||||||||||||||||||||||
7.82 | 12.20 | 1 | 1.55 | (0.44 | ) | 1.72 | (0.61 | ) | 14 | |||||||||||||||||||||||||
6.95 | (24.59 | ) | 113,813 | 1.45 | (0.66 | ) | 1.63 | (0.84 | ) | 40 | ||||||||||||||||||||||||
6.79 | (25.11 | ) | 9,781 | 2.20 | (1.41 | ) | 2.38 | (1.59 | ) | 40 | ||||||||||||||||||||||||
6.80 | (25.08 | ) | 5,109 | 2.20 | (1.41 | ) | 2.38 | (1.59 | ) | 40 | ||||||||||||||||||||||||
7.05 | (24.17 | ) | 59,130 | 1.05 | (0.27 | ) | 1.23 | (0.45 | ) | 40 | ||||||||||||||||||||||||
6.97 | (24.46 | ) | 1 | 1.55 | (0.58 | ) | 1.73 | (0.76 | ) | 40 | ||||||||||||||||||||||||
9.22 | (26.35 | ) | 109,315 | 1.44 | (0.52 | ) | 1.67 | (0.75 | ) | 25 | ||||||||||||||||||||||||
9.07 | (26.84 | ) | 14,235 | 2.19 | (1.27 | ) | 2.42 | (1.50 | ) | 25 | ||||||||||||||||||||||||
9.08 | (26.88 | ) | 5,613 | 2.19 | (1.27 | ) | 2.42 | (1.50 | ) | 25 | ||||||||||||||||||||||||
9.30 | (26.06 | ) | 45,898 | 1.04 | (0.15 | ) | 1.27 | (0.38 | ) | 25 | ||||||||||||||||||||||||
9.23 | (26.27 | ) | 1 | 1.54 | (0.37 | ) | 1.77 | (0.60 | ) | 25 | ||||||||||||||||||||||||
Financial Highlights
Income (loss) from | Distributions | |||||||||||||||||||||||||||||||
investment operations | to shareholders | |||||||||||||||||||||||||||||||
Net asset | ||||||||||||||||||||||||||||||||
value, | Net | Net realized | Total from | From net | From net | |||||||||||||||||||||||||||
beginning | investment | and unrealized | investment | investment | realized | Total | ||||||||||||||||||||||||||
Year - Share Class | of period | income (loss)(a) | gain | operations | income | gains | distributions | |||||||||||||||||||||||||
FOR THE SIX MONTHS ENDED FEBRUARY 28, (Unaudited) | ||||||||||||||||||||||||||||||||
2006 - A | $ | 12.74 | $ | (0.03 | ) | $ | 0.97 | $ | 0.94 | $ | — | $ | (0.31 | ) | $ | (0.31 | ) | |||||||||||||||
2006 - B | 12.46 | (0.07 | ) | 0.94 | 0.87 | — | (0.31 | ) | (0.31 | ) | ||||||||||||||||||||||
2006 - C | 12.43 | (0.08 | ) | 0.95 | 0.87 | — | (0.31 | ) | (0.31 | ) | ||||||||||||||||||||||
2006 - Institutional | 12.89 | — | (d) | 0.98 | 0.98 | (0.04 | ) | (0.31 | ) | (0.35 | ) | |||||||||||||||||||||
2006 - Service | 12.73 | (0.03 | ) | 0.97 | 0.94 | — | (0.31 | ) | (0.31 | ) | ||||||||||||||||||||||
FOR THE YEARS ENDED AUGUST 31, | ||||||||||||||||||||||||||||||||
2005 - A | 11.70 | 0.01 | (e) | 1.22 | 1.23 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||
2005 - B | 11.53 | (0.09 | )(e) | 1.21 | 1.12 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||
2005 - C | 11.51 | (0.09 | )(e) | 1.20 | 1.11 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||
2005 - Institutional | 11.79 | 0.05 | (e) | 1.24 | 1.29 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||
2005 - Service | 11.70 | — | (e) | 1.22 | 1.22 | — | (0.19 | ) | (0.19 | ) | ||||||||||||||||||||||
2004 - A | 11.64 | (0.07 | ) | 0.17 | 0.10 | — | (0.04 | ) | (0.04 | ) | ||||||||||||||||||||||
2004 - B | 11.56 | (0.16 | ) | 0.17 | 0.01 | — | (0.04 | ) | (0.04 | ) | ||||||||||||||||||||||
2004 - C | 11.55 | (0.16 | ) | 0.16 | — | — | (0.04 | ) | (0.04 | ) | ||||||||||||||||||||||
2004 - Institutional | 11.68 | (0.02 | ) | 0.17 | 0.15 | — | (0.04 | ) | (0.04 | ) | ||||||||||||||||||||||
2004 - Service | 11.64 | (0.07 | ) | 0.17 | 0.10 | — | (0.04 | ) | (0.04 | ) | ||||||||||||||||||||||
FOR THE PERIOD ENDED AUGUST 31, | ||||||||||||||||||||||||||||||||
2003 - A (commenced September 3, 2002) | 10.00 | (0.08 | ) | 1.72 | 1.64 | — | — | — | ||||||||||||||||||||||||
2003 - B (commenced September 3, 2002) | 10.00 | (0.16 | ) | 1.72 | 1.56 | — | — | — | ||||||||||||||||||||||||
2003 - C (commenced September 3, 2002) | 10.00 | (0.16 | ) | 1.71 | 1.55 | — | — | — | ||||||||||||||||||||||||
2003 - Institutional (commenced September 3, 2002) | 10.00 | (0.03 | ) | 1.71 | 1.68 | — | — | — | ||||||||||||||||||||||||
2003 - Service (commenced September 3, 2002) | 10.00 | (0.07 | ) | 1.71 | 1.64 | — | — | — | ||||||||||||||||||||||||
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total return would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than one full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Amount is less than $0.005 per share. |
(e) | Reflects income recognized from special dividends which amounted to $0.06 per share and 0.51% of average net assets. |
58
Ratios assuming no | ||||||||||||||||||||||||||||||||||
expense reductions | ||||||||||||||||||||||||||||||||||
Ratio of | Ratio of | |||||||||||||||||||||||||||||||||
Net assets, | Ratio of | net investment | Ratio of | net investment | ||||||||||||||||||||||||||||||
Net asset | end of | net expenses | income (loss) | total expenses | income (loss) | Portfolio | ||||||||||||||||||||||||||||
value, end | Total | period | to average | to average | to average | to average | turnover | |||||||||||||||||||||||||||
of period | return(b) | (in 000s) | net assets | net assets | net assets | net assets | rate | |||||||||||||||||||||||||||
$13.37 | 7.46 | % | $ | 67,127 | 1.48 | %(c) | (0.46 | )% (c) | 1.72 | %(c) | (0.70 | )% (c) | 29 | % | ||||||||||||||||||||
13.02 | 7.06 | 249 | 2.24 | (c) | (1.17 | )(c) | 2.52 | (c) | (1.45 | )(c) | 29 | |||||||||||||||||||||||
12.99 | 7.08 | 456 | 2.23 | (c) | (1.22 | )(c) | 2.47 | (c) | (1.46 | )(c) | 29 | |||||||||||||||||||||||
13.52 | 7.70 | 107,786 | 1.08 | (c) | (0.06 | )(c) | 1.32 | (c) | (0.29 | )(c) | 29 | |||||||||||||||||||||||
13.36 | 7.47 | 2 | 1.50 | (c) | (0.49 | )(c) | 1.70 | (c) | (0.69 | )(c) | 29 | |||||||||||||||||||||||
12.74 | 10.52 | 62,366 | 1.48 | 0.06 | (d) | 1.71 | (0.17 | )(d) | 46 | |||||||||||||||||||||||||
12.46 | 9.71 | 115 | 2.23 | (0.72 | )(d) | 2.46 | (0.95 | )(d) | 46 | |||||||||||||||||||||||||
12.43 | 9.64 | 401 | 2.23 | (0.76 | )(d) | 2.46 | (0.99 | )(d) | 46 | |||||||||||||||||||||||||
12.89 | 10.95 | 85,571 | 1.08 | 0.40 | (d) | 1.31 | 0.17 | (d) | 46 | |||||||||||||||||||||||||
12.73 | 10.43 | 2 | 1.58 | (0.05 | )(d) | 1.81 | (0.28 | )(d) | 46 | |||||||||||||||||||||||||
11.70 | 0.84 | 61,216 | 1.48 | (0.61 | ) | 1.79 | (0.92 | ) | 28 | |||||||||||||||||||||||||
11.53 | 0.06 | 96 | 2.23 | (1.38 | ) | 2.54 | (1.69 | ) | 28 | |||||||||||||||||||||||||
11.51 | (0.02 | ) | 247 | 2.23 | (1.34 | ) | 2.54 | (1.65 | ) | 28 | ||||||||||||||||||||||||
11.79 | 1.26 | 45,464 | 1.08 | (0.20 | ) | 1.39 | (0.51 | ) | 28 | |||||||||||||||||||||||||
11.70 | 0.84 | 2 | 1.58 | (0.61 | ) | 1.89 | (0.92 | ) | 28 | |||||||||||||||||||||||||
11.64 | 16.40 | 49,494 | 1.48 | (c) | (0.76 | )(c) | 2.65 | (c) | (1.93 | )(c) | 19 | |||||||||||||||||||||||
11.56 | 15.60 | 92 | 2.23 | (c) | (1.50 | )(c) | 3.40 | (c) | (2.67 | )(c) | 19 | |||||||||||||||||||||||
11.55 | 15.50 | 20 | 2.23 | (c) | (1.53 | )(c) | 3.40 | (c) | (2.70 | )(c) | 19 | |||||||||||||||||||||||
11.68 | 16.80 | 27,810 | 1.08 | (c) | (0.32 | )(c) | 2.25 | (c) | (1.49 | )(c) | 19 | |||||||||||||||||||||||
11.64 | 16.40 | 2 | 1.58 | (c) | (0.72 | )(c) | 2.75 | (c) | (1.89 | )(c) | 19 | |||||||||||||||||||||||
Financial Highlights
Income (loss) from | Distributions | |||||||||||||||||||||||
investment operations | to shareholders | |||||||||||||||||||||||
Net asset | ||||||||||||||||||||||||
value, | Net | Net realized | Total from | From net | ||||||||||||||||||||
beginning | investment | and unrealized | investment | realized | ||||||||||||||||||||
Year - Share Class | of period | loss(a) | gain (loss) | operations | gains | |||||||||||||||||||
FOR THE SIX MONTHS ENDED FEBRUARY 28, (Unaudited) | ||||||||||||||||||||||||
2006 - A | $ | 22.21 | $ | (0.10 | ) | $ | 1.52 | $ | 1.42 | $ | (1.12 | ) | ||||||||||||
2006 - B | 21.33 | (0.17 | ) | 1.45 | 1.28 | (1.12 | ) | |||||||||||||||||
2006 - C | 21.19 | (0.17 | ) | 1.44 | 1.27 | (1.12 | ) | |||||||||||||||||
2006 - Institutional | 22.77 | (0.06 | ) | 1.56 | 1.50 | (1.12 | ) | |||||||||||||||||
2006 - Service | 22.05 | (0.11 | ) | 1.50 | 1.39 | (1.12 | ) | |||||||||||||||||
FOR THE YEARS ENDED AUGUST 31, | ||||||||||||||||||||||||
2005 - A | 18.58 | (0.20 | ) (d) | 3.83 | 3.63 | — | ||||||||||||||||||
2005 - B | 17.98 | (0.34 | ) (d) | 3.69 | 3.35 | — | ||||||||||||||||||
2005 - C | 17.86 | (0.34 | ) (d) | 3.67 | 3.33 | — | ||||||||||||||||||
2005 - Institutional | 18.97 | (0.12 | ) (d) | 3.92 | 3.80 | — | ||||||||||||||||||
2005 - Service | 18.46 | (0.23 | ) (d) | 3.82 | 3.59 | — | ||||||||||||||||||
2004 - A | 17.38 | (0.15 | ) | 1.35 | 1.20 | — | ||||||||||||||||||
2004 - B | 16.94 | (0.28 | ) | 1.32 | 1.04 | — | ||||||||||||||||||
2004 - C | 16.83 | (0.28 | ) | 1.31 | 1.03 | — | ||||||||||||||||||
2004 - Institutional | 17.67 | (0.08 | ) | 1.38 | 1.30 | — | ||||||||||||||||||
2004 - Service | 17.29 | (0.17 | ) | 1.34 | 1.17 | — | ||||||||||||||||||
2003 - A | 14.09 | (0.12 | ) | 3.41 | 3.29 | — | ||||||||||||||||||
2003 - B | 13.84 | (0.22 | ) | 3.32 | 3.10 | — | ||||||||||||||||||
2003 - C | 13.74 | (0.22 | ) | 3.31 | 3.09 | — | ||||||||||||||||||
2003 - Institutional | 14.27 | (0.06 | ) | 3.46 | 3.40 | — | ||||||||||||||||||
2003 - Service | 14.03 | (0.13 | ) | 3.39 | 3.26 | — | ||||||||||||||||||
2002 - A | 18.11 | (0.15 | ) | (3.87 | ) | (4.02 | ) | — | ||||||||||||||||
2002 - B | 17.92 | (0.27 | ) | (3.81 | ) | (4.08 | ) | — | ||||||||||||||||
2002 - C | 17.80 | (0.27 | ) | (3.79 | ) | (4.06 | ) | — | ||||||||||||||||
2002 - Institutional | 18.26 | (0.08 | ) | (3.91 | ) | (3.99 | ) | — | ||||||||||||||||
2002 - Service | 18.05 | (0.16 | ) | (3.86 | ) | (4.02 | ) | — | ||||||||||||||||
2001 - A | 19.50 | (0.14 | ) | (0.66 | ) | (0.80 | ) | (0.59 | ) | |||||||||||||||
2001 - B | 19.45 | (0.28 | ) | (0.66 | ) | (0.94 | ) | (0.59 | ) | |||||||||||||||
2001 - C | 19.31 | (0.28 | ) | (0.64 | ) | (0.92 | ) | (0.59 | ) | |||||||||||||||
2001 - Institutional | 19.59 | (0.07 | ) | (0.67 | ) | (0.74 | ) | (0.59 | ) | |||||||||||||||
2001 - Service | 19.45 | (0.16 | ) | (0.65 | ) | (0.81 | ) | (0.59 | ) | |||||||||||||||
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total return would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than one full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Reflects income recognized from special dividends which amounted to $0.01 per share and 0.03% of average net assets. |
60
Ratios assuming no | ||||||||||||||||||||||||||||||||||
expense reductions | ||||||||||||||||||||||||||||||||||
Ratio of | Ratio of | |||||||||||||||||||||||||||||||||
Net assets, | Ratio of | net investment | Ratio of | net investment | ||||||||||||||||||||||||||||||
Net asset | end of | net expenses | loss | total expenses | loss | Portfolio | ||||||||||||||||||||||||||||
value, end | Total | period | to average | to average | to average | to average | turnover | |||||||||||||||||||||||||||
of period | return(b) | (in 000s) | net assets | net assets | net assets | net assets | rate | |||||||||||||||||||||||||||
$ | 22.51 | 6.59 | % | $ | 1,043,706 | 1.46 | %(c) | (0.90 | )% (c) | 1.47 | %(c) | (0.91 | )% (c) | 31 | % | |||||||||||||||||||
21.49 | 6.19 | 89,624 | 2.21 | (c) | (1.65 | )(c) | 2.22 | (c) | (1.66 | )(c) | 31 | |||||||||||||||||||||||
21.34 | 6.19 | 127,870 | 2.22 | (c) | (1.65 | )(c) | 2.22 | (c) | (1.65 | )(c) | 31 | |||||||||||||||||||||||
23.15 | 6.78 | 1,020,616 | 1.07 | (c) | (0.50 | )(c) | 1.07 | (c) | (0.50 | )(c) | 31 | |||||||||||||||||||||||
22.32 | 6.50 | 11,914 | 1.57 | (c) | (1.00 | )(c) | 1.57 | (c) | (1.00 | )(c) | 31 | |||||||||||||||||||||||
22.21 | 19.54 | 936,312 | 1.49 | (0.94 | )(d) | 1.49 | (0.94 | )(d) | 62 | |||||||||||||||||||||||||
21.33 | 18.63 | 91,286 | 2.24 | (1.69 | )(d) | 2.24 | (1.69 | )(d) | 62 | |||||||||||||||||||||||||
21.19 | 18.65 | 112,420 | 2.24 | (1.69 | )(d) | 2.24 | (1.69 | )(d) | 62 | |||||||||||||||||||||||||
22.77 | 20.03 | 739,739 | 1.09 | (0.54 | )(d) | 1.09 | (0.54 | )(d) | 62 | |||||||||||||||||||||||||
22.05 | 19.45 | 8,242 | 1.59 | (1.04 | )(d) | 1.59 | (1.04 | )(d) | 62 | |||||||||||||||||||||||||
18.58 | 6.90 | 615,510 | 1.49 | (0.80 | ) | 1.49 | (0.80 | ) | 51 | |||||||||||||||||||||||||
17.98 | 6.14 | 85,969 | 2.24 | (1.55 | ) | 2.24 | (1.55 | ) | 51 | |||||||||||||||||||||||||
17.86 | 6.12 | 69,067 | 2.24 | (1.55 | ) | 2.24 | (1.55 | ) | 51 | |||||||||||||||||||||||||
18.97 | 7.36 | 290,601 | 1.09 | (0.40 | ) | 1.09 | (0.40 | ) | 51 | |||||||||||||||||||||||||
18.46 | 6.77 | 1,464 | 1.59 | (0.87 | ) | 1.59 | (0.87 | ) | 51 | |||||||||||||||||||||||||
17.38 | 23.35 | 441,187 | 1.53 | (0.80 | ) | 1.53 | (0.80 | ) | 66 | |||||||||||||||||||||||||
16.94 | 22.40 | 85,601 | 2.28 | (1.56 | ) | 2.28 | (1.56 | ) | 66 | |||||||||||||||||||||||||
16.83 | 22.49 | 63,358 | 2.28 | (1.56 | ) | 2.28 | (1.56 | ) | 66 | |||||||||||||||||||||||||
17.67 | 23.83 | 189,498 | 1.13 | (0.41 | ) | 1.13 | (0.41 | ) | 66 | |||||||||||||||||||||||||
17.29 | 23.24 | 539 | 1.63 | (0.90 | ) | 1.63 | (0.90 | ) | 66 | |||||||||||||||||||||||||
14.09 | (22.20 | ) | 368,361 | 1.51 | (0.87 | ) | 1.51 | (0.87 | ) | 69 | ||||||||||||||||||||||||
13.84 | (22.77 | ) | 68,639 | 2.26 | (1.62 | ) | 2.26 | (1.62 | ) | 69 | ||||||||||||||||||||||||
13.74 | (22.81 | ) | 47,581 | 2.26 | (1.62 | ) | 2.26 | (1.62 | ) | 69 | ||||||||||||||||||||||||
14.27 | (21.89 | ) | 134,954 | 1.11 | (0.47 | ) | 1.11 | (0.47 | ) | 69 | ||||||||||||||||||||||||
14.03 | (22.27 | ) | 471 | 1.61 | (0.99 | ) | 1.61 | (0.99 | ) | 69 | ||||||||||||||||||||||||
18.11 | (4.17 | ) | 428,981 | 1.54 | (0.74 | ) | 1.54 | (0.74 | ) | 66 | ||||||||||||||||||||||||
17.92 | (4.92 | ) | 73,776 | 2.29 | (1.49 | ) | 2.29 | (1.49 | ) | 66 | ||||||||||||||||||||||||
17.80 | (4.85 | ) | 47,738 | 2.29 | (1.49 | ) | 2.29 | (1.49 | ) | 66 | ||||||||||||||||||||||||
18.26 | (3.79 | ) | 128,182 | 1.14 | (0.34 | ) | 1.14 | (0.34 | ) | 66 | ||||||||||||||||||||||||
18.05 | (4.24 | ) | 232 | 1.64 | (0.84 | ) | 1.64 | (0.84 | ) | 66 | ||||||||||||||||||||||||
Financial Highlights
Income (loss) from | Distributions | |||||||||||||||||||||||||||
investment operations | to shareholders | |||||||||||||||||||||||||||
Net asset | ||||||||||||||||||||||||||||
value, | Net | Net realized | Total from | From net | From net | |||||||||||||||||||||||
beginning | investment | and unrealized | investment | investment | realized | |||||||||||||||||||||||
Year - Share Class | of period | loss(a) | gain | operations | income | gains | ||||||||||||||||||||||
FOR THE SIX MONTHS ENDED FEBRUARY 28, (Unaudited) | ||||||||||||||||||||||||||||
2006 - A | $ | 10.40 | $ | (0.03 | ) | $ | 1.16 | $ | 1.13 | $ | — | $ | (0.11 | ) | ||||||||||||||
2006 - B | 10.36 | (0.08 | ) | 1.16 | 1.08 | — | (0.11 | ) | ||||||||||||||||||||
2006 - C | 10.36 | (0.07 | ) | 1.15 | 1.08 | — | (0.11 | ) | ||||||||||||||||||||
2006 - Institutional | 10.38 | (0.02 | ) | 1.17 | 1.15 | — | (0.11 | ) | ||||||||||||||||||||
2006 - Service | 10.37 | (0.04 | ) | 1.16 | 1.12 | — | (0.11 | ) | ||||||||||||||||||||
FOR THE PERIOD ENDED AUGUST 31, | ||||||||||||||||||||||||||||
2005 - A (commenced June 30, 2005) | 10.00 | (0.01 | ) | 0.41 | 0.40 | — | — | |||||||||||||||||||||
2005 - B (commenced June 30, 2005) | 10.00 | (0.02 | ) | 0.38 | 0.36 | — | — | |||||||||||||||||||||
2005 - C (commenced June 30, 2005) | 10.00 | (0.02 | ) | 0.38 | 0.36 | — | — | |||||||||||||||||||||
2005 - Institutional (commenced June 30, 2005) | 10.00 | — | (d) | 0.38 | 0.38 | — | — | |||||||||||||||||||||
2005 - Service (commenced June 30, 2005) | 10.00 | (0.01 | ) | 0.38 | 0.37 | — | — | |||||||||||||||||||||
(a) | Calculated based on the average shares outstanding methodology. |
(b) | Assumes investment at the net asset value at the beginning of the period, reinvestment of all dividends and distributions, a complete redemption of the investment at the net asset value at the end of the period and no sales or redemption charges. Total return would be reduced if a sales or redemption charge were taken into account. Total returns for periods less than one full year are not annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. |
(c) | Annualized. |
(d) | Amount is less than $0.005 per share. |
62
Ratios assuming no | ||||||||||||||||||||||||||||||||||
expense reductions | ||||||||||||||||||||||||||||||||||
Ratio of | Ratio of | |||||||||||||||||||||||||||||||||
Net assets, | Ratio of | net investment | Ratio of | net investment | ||||||||||||||||||||||||||||||
Net asset | end of | net expenses | loss | total expenses | loss | Portfolio | ||||||||||||||||||||||||||||
value, end | Total | period | to average | to average | to average | to average | turnover | |||||||||||||||||||||||||||
of period | return(b) | (in 000s) | net assets(c) | net assets(c) | net assets(c) | net assets(c) | rate | |||||||||||||||||||||||||||
$ | 11.42 | 10.95 | % | $ | 17,348 | 1.50 | % | (0.62 | )% | 6.12 | % | (5.24 | )% | 22 | % | |||||||||||||||||||
11.33 | 10.50 | 696 | 2.25 | (1.43 | ) | 7.39 | (6.57 | ) | 22 | |||||||||||||||||||||||||
11.33 | 10.50 | 3,757 | 2.29 | (1.24 | ) | 5.99 | (4.94 | ) | 22 | |||||||||||||||||||||||||
11.42 | 11.17 | 6,817 | 1.07 | (0.38 | ) | 8.29 | (7.60 | ) | 22 | |||||||||||||||||||||||||
11.38 | 10.88 | 11 | 1.57 | (0.86 | ) | 8.89 | (8.18 | ) | 22 | |||||||||||||||||||||||||
10.40 | 4.00 | 569 | 1.50 | (0.69 | ) | 16.73 | (15.92 | ) | 3 | |||||||||||||||||||||||||
10.36 | 3.60 | 69 | 2.25 | (1.42 | ) | 17.48 | (16.65 | ) | 3 | |||||||||||||||||||||||||
10.36 | 3.60 | 19 | 2.25 | (1.35 | ) | 17.48 | (16.58 | ) | 3 | |||||||||||||||||||||||||
10.38 | 3.80 | 5,415 | 1.10 | (0.13 | ) | 16.33 | (15.36 | ) | 3 | |||||||||||||||||||||||||
10.37 | 3.70 | 10 | 1.60 | (0.62 | ) | 16.83 | (15.85 | ) | 3 | |||||||||||||||||||||||||
Fund Expenses (Unaudited) — Six Month Period Ended February 28, 2006
As a shareholder of Class A, Class B, Class C, Institutional or Service Shares of the Funds you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments (with respect to Class A Shares), contingent deferred sales charges (loads) on redemptions (with respect to Class B and Class C Shares), and redemption fees (with respect to Class A, Class B, Class C, Institutional and Service Shares, if any); and (2) ongoing costs, including management fees; distribution and service (12b-1) fees (with respect to Class A, Class B and Class C Shares); and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in Class A, Class B, Class C, Institutional and Service Shares of the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from September 1, 2005 through February 28, 2006.
Actual Expenses — The first line under each share class in the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes — The second line under each share class in the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Capital Growth Fund | Strategic Growth Fund | |||||||||||||||||||||||
Expenses | Expenses | |||||||||||||||||||||||
Beginning | Ending | Paid for the | Beginning | Ending | Paid for the | |||||||||||||||||||
Account Value | Account Value | 6 months ended | Account Value | Account Value | 6 months ended | |||||||||||||||||||
Share Class | 9/1/05 | 2/28/06 | 2/28/06* | 9/1/05 | 2/28/06 | 2/28/06* | ||||||||||||||||||
Class A | ||||||||||||||||||||||||
Actual | $ | 1,000 | $ | 1,063.50 | $ | 7.15 | $ | 1,000 | $ | 1,060.60 | $ | 7.37 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,017.87 | + | 6.99 | 1,000 | 1,017.64 | + | 7.22 | ||||||||||||||||
Class B | ||||||||||||||||||||||||
Actual | 1,000 | 1,059.00 | 10.95 | 1,000 | 1,057.50 | 11.18 | ||||||||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,014.16 | + | 10.71 | 1,000 | 1,013.92 | + | 10.95 | ||||||||||||||||
Class C | ||||||||||||||||||||||||
Actual | 1,000 | 1,059.70 | 10.96 | 1,000 | 1,057.40 | 11.19 | ||||||||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,014.15 | + | 10.72 | 1,000 | 1,013.92 | + | 10.95 | ||||||||||||||||
Institutional | ||||||||||||||||||||||||
Actual | 1,000 | 1,065.70 | 5.11 | 1,000 | 1,063.60 | 5.35 | ||||||||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,019.85 | + | 4.99 | 1,000 | 1,019.61 | + | 5.23 | ||||||||||||||||
Service | ||||||||||||||||||||||||
Actual | 1,000 | 1,062.90 | 7.66 | 1,000 | 1,062.70 | 7.33 | ||||||||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,017.37 | + | 7.49 | 1,000 | 1,017.69 | + | 7.17 | ||||||||||||||||
[Additional columns below]
[Continued from above table, first column(s) repeated]
Concentrated Growth Fund | Growth Opportunities Fund | Small/Mid Cap Growth Fund | ||||||||||||||||||||||||||||||||||
Expenses | Expenses | Expenses | ||||||||||||||||||||||||||||||||||
Beginning | Ending | Paid for the | Beginning | Ending | Paid for the | Beginning | Ending | Paid for the | ||||||||||||||||||||||||||||
Account Value | Account Value | 6 months ended | Account Value | Account Value | 6 months ended | Account Value | Account Value | 2 months ended | ||||||||||||||||||||||||||||
Share Class | 9/1/05 | 2/28/06 | 2/28/06* | 9/1/05 | 2/28/06 | 2/28/06* | 9/1/05 | 2/28/06 | 2/28/06* | |||||||||||||||||||||||||||
Class A | ||||||||||||||||||||||||||||||||||||
Actual | $ | 1,000 | $ | 1,074.60 | $ | 7.62 | $ | 1,000 | $ | 1,065.90 | $ | 7.50 | $ | 1,000 | $ | 1,109.50 | $ | 7.84 | ||||||||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,017.45 | + | 7.41 | 1,000 | 1,017.53 | + | 7.33 | 1,000 | 1,017.37 | + | 7.49 | ||||||||||||||||||||||||
Class B | ||||||||||||||||||||||||||||||||||||
Actual | 1,000 | 1,070.60 | 11.48 | 1,000 | 1,061.90 | 11.32 | 1,000 | 1,105.00 | 11.74 | |||||||||||||||||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,013.70 | + | 11.17 | 1,000 | 1,013.82 | + | 11.05 | 1,000 | 1,013.64 | + | 11.23 | ||||||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||||||
Actual | 1,000 | 1,070.80 | 11.46 | 1,000 | 1,061.90 | 11.32 | 1,000 | 1,105.00 | 11.94 | |||||||||||||||||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,013.73 | + | 11.14 | 1,000 | 1,013.81 | + | 11.06 | 1,000 | 1,013.45 | + | 11.42 | ||||||||||||||||||||||||
Institutional | ||||||||||||||||||||||||||||||||||||
Actual | 1,000 | 1,077.00 | 5.57 | 1,000 | 1,067.80 | 5.47 | 1,000 | 1,111.70 | 5.62 | |||||||||||||||||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,019.43 | + | 5.42 | 1,000 | 1,019.50 | + | 5.34 | 1,000 | 1,019.47 | + | 5.37 | ||||||||||||||||||||||||
Service | ||||||||||||||||||||||||||||||||||||
Actual | 1,000 | 1,074.70 | 7.71 | 1,000 | 1,065.00 | 8.03 | 1,000 | 1,108.80 | 8.20 | |||||||||||||||||||||||||||
Hypothetical (5% return before expenses) | 1,000 | 1,017.36 | + | 7.49 | 1,000 | 1,017.02 | + | 7.84 | 1,000 | 1,017.06 | + | 7.85 | ||||||||||||||||||||||||
* | Expenses for each share class are calculated using the fund’s annualized expense ratio for each class, which represents the ongoing expenses as a percentage of net assets for the six months ended February 28, 2006. Expenses are calculated by multiplying the annualized expense ratio by the average account value for the period; then multiplying the result by the number of days in the most recent fiscal half year; and then dividing that result by the number of days in the calendar year. Expense ratios for the most recent fiscal half year may differ from expense ratios based on one-year data in the financial highlights. The expense ratios for the period were as follows: |
Fund | Class A | Class B | Class C | Institutional | Service | |||||||||||||||
Capital Growth Fund | 1.40 | % | 2.15 | % | 2.15 | % | 1.00 | % | 1.50 | % | ||||||||||
Strategic Growth Fund | 1.44 | 2.19 | 2.19 | 1.04 | 1.43 | |||||||||||||||
Concentrated Growth Fund | 1.48 | 2.24 | 2.23 | 1.08 | 1.50 | |||||||||||||||
Growth Opportunities Fund | 1.46 | 2.21 | 2.22 | 1.07 | 1.57 | |||||||||||||||
Small/ Mid Cap Fund | 1.50 | 2.25 | 2.29 | 1.07 | 1.57 | |||||||||||||||
+ | Hypothetical expenses are based on each Fund’s actual annualized expense ratios and an assumed rate of return of 5% per year before expenses. |
Goldman Sachs Funds
Goldman Sachs is a premier financial services firm, known since 1869 for creating thoughtful and customized investment solutions in complex global markets.
Today, The Investment Management Division of Goldman Sachs serves a diverse set of clients worldwide, including private institutions, public entities and individuals. With portfolio management teams located around the world — and $526.4 billion in assets under management as of December 31, 2005 — our investment professionals bring firsthand knowledge of local markets to every investment decision, making us one of the few truly global asset managers.
GOLDMAN SACHS FUNDS |
In building a globally diversified portfolio, you can select from more than 50 Goldman Sachs Funds and gain access to investment opportunities across borders, investment styles, asset classes and security capitalizations.
International Equity Funds ▪ Asia Equity Fund2 ▪ Emerging Markets Equity Fund ▪ International Small Cap Fund2 ▪ Japanese Equity Fund ▪ European Equity Fund ▪ International Equity Fund ▪ Structured International Equity Fund 2 | Domestic Equity Funds ▪ Small Cap Value Fund ▪ Structured Small Cap Equity Fund2 ▪ Small/Mid Cap Growth Fund ▪ Growth Opportunities Fund ▪ Mid Cap Value Fund ▪ Concentrated Growth Fund ▪ Research Select FundSM ▪ Strategic Growth Fund ▪ Capital Growth Fund ▪ Large Cap Value Fund ▪ Growth and Income Fund ▪ Structured Large Cap Growth Fund2 ▪ Structured Large Cap Value Fund2 ▪ Structured U.S. Equity Fund2 Asset Allocation Funds ▪ Balanced Fund ▪ Asset Allocation Portfolios | Specialty Funds ▪ Tollkeeper FundSM ▪ Structured Tax-Managed Equity Fund2 ▪ U.S. Equity Dividend and Premium Fund ▪ Real Estate Securities Fund Fixed Income Funds ▪ Emerging Markets Debt Fund ▪ High Yield Fund ▪ High Yield Municipal Fund ▪ Global Income Fund ▪ Investment Grade Credit Fund ▪ Core Fixed Income Fund ▪ Government Income Fund ▪ U.S. Mortgages Fund ▪ Municipal Income Fund ▪ California Intermediate AMT-Free Municipal Fund ▪ New York Intermediate AMT-Free Municipal Fund ▪ Short Duration Tax-Free Fund ▪ Short Duration Government Fund ▪ Ultra-Short Duration Government Fund ▪ Enhanced Income Fund Money Market Funds1 |
1 | An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds. 2 Effective December 30, 2005, the Asia Growth Fund was renamed the Asia Equity Fund and the International Growth Opportunities Fund was renamed the International Small Cap Fund. Also effective December 30, 2005, the CORESM International Equity, CORESM Small Cap Equity, CORESM Large Cap Growth, CORESM Large Cap Value and CORESM U.S. Equity Funds were renamed, respectively, the Structured International Equity, Structured Small Cap Equity, Structured Large Cap Growth, Structured Large Cap Value and Structured U.S. Equity Funds. Effective January 6, 2006, the CORESM Tax-Managed Equity Fund was renamed the Structured Tax-Managed Equity Fund. The Goldman Sachs Research Select FundSM, CORESM and Tollkeeper FundSM are registered service marks of Goldman, Sachs & Co. |
TRUSTEES Ashok N. Bakhru, Chairman John P. Coblentz, Jr. Patrick T. Harker Mary Patterson McPherson Alan A. Shuch Wilma J. Smelcer Richard P. Strubel Kaysie P. Uniacke | OFFICERS Kaysie P. Uniacke, President James A. Fitzpatrick, Vice President James A. McNamara, Vice President John M. Perlowski, Treasurer Howard B. Surloff, Secretary |
GOLDMAN, SACHS & CO. Distributor and Transfer Agent | GOLDMAN SACHS ASSET MANAGEMENT, L.P. Investment Adviser |
Visit our Web site at www.gs.com/funds to obtain the most recent month-end returns
The reports concerning the Funds included in this shareholder report may contain certain forward-looking statements about the factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events and their expected impact on the Funds, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors that may influence the future performance of the Funds. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in portfolio management strategies from those currently expected to be employed.
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how a Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (I) without charge, upon request by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders); and (II) on the Securities and Exchange Commission Web site at http://www.sec.gov.
The Funds file their complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. Beginning the fiscal quarter ended November 30, 2004 and every first and third fiscal quarter thereafter, the Funds’ Form N-Q will become available on the SEC’s website at http://www.sec.gov within 60 days after the Funds’ first and third fiscal quarters. When available, the Funds’ Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may also be obtained by calling 1-800-SEC-0330. When available, Form N-Q may be obtained upon request and without charge by calling 1-800-526-7384 (for Retail Shareholders) or 1-800-621-2550 (for Institutional Shareholders).
The Capital Growth, Strategic Growth, Concentrated Growth and Growth Opportunities Funds may invest in foreign securities, which may be more volatile and less liquid than investment in U.S. securities and will be subject to the risks of currency fluctuations and sudden economic or political developments. At times, the Funds may be unable to sell certain of their portfolio securities without a substantial drop in price, if at all. The Small/Mid Cap Growth Fund may also invest in foreign securities and emerging market securities. Foreign and emerging market securities may be more volatile than investment in U.S. securities and will be subject to the risks of currency fluctuations and political developments.
The Capital Growth, Strategic Growth, Concentrated Growth and Growth Opportunities Funds may participate in the Initial Public Offering (IPO) market, and a portion of the Funds’ returns consequently may be attributable to their investment in IPOs. The market value of IPO shares may fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, and the small number of shares available for trading and limited information about the issuer. When a fund’s asset base is small, IPOs may have a magnified impact on the fund’s performance. As a fund’s assets grow, it is probable that the effect of the fund’s investment in IPOs on its total returns may not be as significant, which could reduce the fund’s performance.
Holdings and allocations shown may not be representative of current or future investments. Holdings and allocations may not include the Fund’s entire investment portfolio, which may change at any time. Fund holdings should not be relied on in making investment decisions and should not be construed as research or investment advice regarding particular securities.
This material is not authorized for distribution to prospective investors unless preceded or accompanied by a current Prospectus. Please consider a Fund’s objectives, risks, and charges and expenses, and read the Prospectus carefully before investing. The Prospectus contains this and other information about the Funds.
Copyright 2006 Goldman, Sachs & Co. All rights reserved. | 06-466 / GROWTHSAR / 170.9K / 04-06 |
ITEM 2. | CODE OF ETHICS. Not applicable to the Semi–Annual Report for the period ended February 28, 2006 |
ITEM 3. | AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable to the Semi–Annual Report for the period ended February 28, 2006 |
ITEM 4. | PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable to the Semi–Annual Report for the period ended February 28, 2006 | |
ITEM 5. | AUDIT COMMITTEE OF LISTED REGISTRANTS. | |
Not applicable. |
ITEM 6. | SCHEDULE OF INVESTMENTS. | |
Schedule of Investments is included as part of the Report to Shareholders filed under Item 1. |
ITEM 7. | DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. | |
Not applicable. |
ITEM 8. | PORTFOLIO MANAGERS OF CLOSED END MANAGEMENT INVESTMENT COMPANIES. | |
Not applicable. |
ITEM 9. | PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. | |
Not applicable. |
ITEM 10. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees. | |
ITEM 11. | CONTROLS AND PROCEDURES. | |
(a) | The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934, as amended. | ||
(b) | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect the registrant’s internal control over financial reporting. | ||
ITEM 12. | EXHIBITS. |
(a)(1) | Goldman Sachs Trust’s Code of Ethics for Principal Executive and Senior Financial Officers is incorporated by reference to Exhibit 11(a)(1) of the registrant’s Form N-CSR filed on March 8, 2004 for its Real Estate Securities Fund (Accession Number 0000950123-04-0002984). | ||
(a)(2) | Exhibit 99.CERT | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith. | ||
(b) | Exhibit 99.906CERT | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. |
Goldman Sachs Trust | ||||||
By: | /s/ Kaysie P. Uniacke | |||||
Kaysie P. Uniacke | ||||||
President/Principal Executive Officer | ||||||
Goldman Sachs Trust | ||||||
Date: | May 5, 2006 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. |
By: | /s/ Kaysie P. Uniacke | |||||
Kaysie P. Uniacke | ||||||
President/Principal Executive Officer | ||||||
Goldman Sachs Trust | ||||||
Date: | May 5, 2006 | |||||
By: | /s/ John M. Perlowski | |||||
John M. Perlowski | ||||||
Treasurer/Principal Financial Officer | ||||||
Goldman Sachs Trust | ||||||
Date: | May 5, 2006 |