United States Securities and Exchange Commission Washington, D.C. 20549 Form N-CSR Certified Shareholder Report of Registered Management Investment Companies 811-5536 (Investment Company Act File Number) Hibernia Funds --------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) 5800 Corporate Drive Pittsburgh, Pennsylvania 15237-7010 (412) 288-1900 (Registrant's Telephone Number) Timothy S. Johnson Federated Investors Tower 1001 Liberty Avenue Pittsburgh, Pennsylvania 15222-3779 (Name and Address of Agent for Service) (Notices should be sent to the Agent for Service) Date of Fiscal Year End: 8/31/05 Date of Reporting Period: Fiscal year ended 8/31/05 ------------------------- Item 1. Reports to Stockholders
ANNUAL REPORT
AUGUST 31, 2005
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
PORTFOLIO OF INVESTMENTS SUMMARY TABLES
FINANCIAL STATEMENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
BOARD OF TRUSTEES AND TRUST OFFICERS
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE
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Hibernia Capital Appreciation Fund
Class A Shares
Class B Shares
Hibernia Louisiana Municipal Income Fund
Class A Shares
Class B Shares
Hibernia Mid Cap Equity Fund
Class A Shares
Class B Shares
Hibernia Total Return Bond Fund
Hibernia U.S. Government Income Fund
Hibernia Cash Reserve Fund
Class A Shares
Class B Shares
Hibernia U.S. Treasury Money Market Fund
Not FDIC Insured · May Lose Value · No Bank Guarantee
Management’s Discussion of Fund Performance
Hibernia Capital Appreciation Fund
Annual Report/12-month period from September 1, 2004 through August 31, 2005
MARKET REVIEW
The U.S. equity markets performed well during the fund’s fiscal year. Except for a pause in the first calendar quarter of 2005, the trend was generally up with little volatility. Overall, market performance was dominated by smaller capitalization stocks with the mid- and small-cap indexes outperforming large-cap indexes. In those smaller classes, volatility was higher, but this turned out to be profitable. Corporate sector revenue and profit growth was quite strong, with earnings up about 20% over the previous year. Consumer spending remained a support for the overall economy and, despite the late stage of the current expansion, the housing sector showed no signs of cooling off.
In this continued strong economic environment, the S&P 500 Index1 produced a total return of 12.55% for the reporting period.
PORTFOLIO PERFORMANCE
The Hibernia Capital Appreciation Fund’s total return, based on net asset value, for the 12-month period ended August 31, 2005 was 13.44% for Class A Shares and 12.56% for Class B Shares. Fund performance was steady throughout the year without much volatility, and the fund outperformed its benchmark. During the fiscal year, value stocks slightly outperformed growth stocks in the large-cap sector. The fund had a very slight value tilt which helped generate positive performance when compared to the benchmark index. Additionally, energy and utility stocks turned in quite strong performances, rising about 50% and 30% respectively over the fiscal year. The Adviser’s risk control policies allowed the fund to participate in the dramatic rises of these stock sectors without incurring an inordinate amount of risk.
STRATEGY
Portfolio strategy continued to emphasize security selection and risk-control. Broad diversification across industry groups and economic sectors was a key part of this risk control, as well as minimization of exposures to other benchmark characteristics (i.e., growth vs. value, capitalization, etc.).2
1 The S&P 500 is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Investments cannot be made in an index.
2 Diversification does not assure a profit nor protect against loss.
Performance data quoted represents past performance which is no guarantee of future results. 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. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Current to the most recent month end performance is available on the Hibernia Funds website at www.Hiberniafunds.com.
Hibernia Capital Appreciation Fund--Class A Shares
Growth of a $10,000 Investment
The graph below illustrates the hypothetical investment of $10,0001 in the Hibernia Capital Appreciation Fund--Class A Shares (the “Fund”) from August 31, 1995 to August 31, 2005, compared to the Standard & Poor’s 500 Index (“S&P 500”).2
AVERAGE ANNUAL TOTAL RETURNS3 FOR THE
PERIOD ENDED AUGUST 31, 2005
1 Year | 8.35% | |
5 Years | (3.66)% | |
10 Years | 8.95% | |
Performance data quoted represents past performance, which is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum sales charge of 4.50%.
1 Represents a hypothetical investment of $10,000 in the Fund after deducting the original maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550). For the period from October 31, 1993 to August 31, 1996, the sales charge was 3.00%. Effective September 1, 1996, the maximum sales charge changed to 4.50%. The Fund’s performance assumes the reinvestment of all dividends and distributions. The S&P 500 has been adjusted to reflect reinvestment of dividends on securities in the index.
2 The S&P 500 is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission (“SEC”) requires to be reflected in the Fund’s performance. The index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
3 Total returns quoted reflect the current 4.50% sales charge.
Hibernia Capital Appreciation Fund--Class B Shares
Growth of a $10,000 Investment
The graph below illustrates the hypothetical investment of $10,0001 in the Hibernia Capital Appreciation Fund--Class B Shares (the “Fund”) from December 2, 1996 (start of performance) to August 31, 2005, compared to the Standard & Poor’s 500 Index (“S&P 500”).2
AVERAGE ANNUAL TOTAL RETURNS3 FOR THE
PERIOD ENDED AUGUST 31, 2005
1 Year | 7.06% | |
5 Years | (3.82)% | |
Start of Performance (12/2/96) | 6.11% | |
Performance data quoted represents past performance, which is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum contingent deferred sales charge of 5.50% as applicable.
1 Represents a hypothetical investment of $10,000 in the Fund. The ending value of the Fund does not reflect a contingent deferred sales charge on any redemption over seven years from the purchase date. The maximum contingent deferred sales charge is 5.50% on any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The S&P 500 has been adjusted to reflect reinvestment of dividends on securities in the index.
2 The S&P 500 is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. The index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
3 Total returns quoted reflect all applicable contingent deferred sales charges.
Hibernia Louisiana Municipal Income Fund
Annual Report/12-month period from September 1, 2004 through August 31, 2005
MARKET REVIEW
The Hibernia Louisiana Municipal Income Fund’s total return, based on net asset value, for the 12-month period ended August 31, 2005 was 3.49% for Class A Shares and 2.60% for Class B Shares. Municipal “AAA” yields increased for bonds with a maturity of less than ten years; however municipal rates declined between 10-years and 30-years despite healthy economic growth and rising inflation rates.1 The prevailing belief is that heavy overseas buying of U.S. bonds and arbitrage opportunities between the municipal and taxable markets caused longer term municipal rates to rally throughout the fund’s fiscal year.2
The fund took a defensive posture during the year with the fund’s duration trailing its passive benchmark.3 Hurricane Katrina has had only modest impact on bond values because the Louisiana bonds in the portfolio are either insured by a bond insurer, or collateralized with assets guaranteed by the federal government or one of its agencies. Standard & Poor’s and Moody’s Investor Services (two well-known bond rating agencies) analyses suggests that the bond insurance industry should be able to comfortably weather any losses resulting from Katrina.
1 Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices.
2 Income may be subject to the federal alternative minimum tax.
3 Duration is the measure of a security’s price sensitivity to changes in interest rates. Securities with longer durations are more sensitive to changes in the interest rates than securities of shorter durations.
Performance data quoted represents past performance which is no guarantee of future results. 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. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Current to the most recent month end performance is available on the Hibernia Funds website at www.Hiberniafunds.com.
Hibernia Louisiana Municipal Income Fund--Class A Shares
Growth of a $10,000 Investment
The graph below illustrates the hypothetical investment of $10,0001 in the Hibernia Louisiana Municipal Income Fund--Class A Shares (the “Fund”) from August 31, 1995 to August 31, 2005, compared to the Lehman Brothers Ten Year Insured Bond Index (“LB10I”).2
AVERAGE ANNUAL TOTAL RETURNS3 FOR THE
PERIOD ENDED AUGUST 31, 2005
1 Year | 0.39% | |
5 Years | 4.89% | |
10 Years | 5.18% | |
Performance data quoted represents past performance which, is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum sales charge of 3.00%.
1 Represents a hypothetical investment of $10,000 in the Fund after deducting the maximum sales charge of 3.00% ($10,000 investment minus $300 sales charge = $9,700). The Fund’s performance assumes the reinvestment of all dividends and distributions. The LB10I has been adjusted to reflect reinvestment of income on securities in the index.
2 The LB10I is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. The index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
3 Total returns quoted reflect the current 3.00% sales charge.
Hibernia Louisiana Municipal Income Fund--Class B Shares
Growth of a $10,000 Investment
The graph below illustrates the hypothetical investment of $10,0001 in the Hibernia Louisiana Municipal Income Fund--Class B Shares (the “Fund”) from November 15, 2001 (start of performance) to August 31, 2005, compared to the Lehman Brothers Ten Year Insured Bond Index (“LB10I”).2
AVERAGE ANNUAL TOTAL RETURNS3 FOR THE
PERIOD ENDED AUGUST 31, 2005
1 Year | (2.85)% | |
Start of Performance (11/15/01) | 2.90% | |
Performance data quoted represents past performance, which is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum contingent deferred sales charge of 5.50% as applicable.
1 Represents a hypothetical investment of $10,000 in the Fund. The ending value of the Fund reflects a 3.00% contingent deferred sales charge on any redemption less than four years from the purchase date. The maximum contingent deferred sales charge is 5.50% on any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The LB10I has been adjusted to reflect reinvestment of income on securities in the index.
2 The LB10I is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. The index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
3 Total returns quoted reflect all applicable contingent deferred sales charges.
Hibernia Mid Cap Equity Fund
Annual Report/12-month period from September 1, 2004 through August 31, 2005
MARKET REVIEW
The U.S. equity markets performed well during the fund’s fiscal year. Except for a pause in the first calendar quarter of 2005, the trend was generally up with little volatility. Overall, market performance was dominated by smaller capitalization stocks with the mid- and small-cap indexes outperforming large-cap indexes. In those smaller classes, volatility was higher, but this turned out to be profitable. Revenue and profit growth in the corporate sector was quite strong, with earnings up about 20% over the previous year. Consumer spending remained a support for the overall economy and, despite the late stage of the current expansion, the housing sector showed no signs of cooling off.
In this continued strong economic environment, the S&P Mid Cap 400 Index1 produced a total return of approximately 24.80% for the reporting period.
PORTFOLIO PERFORMANCE
The Hibernia Mid Cap Equity Fund’s total return, based on net asset value for the 12-month period ended August 31, 2005 was 28.80% for Class A Shares and 27.85% for Class B Shares. The fund’s performance was strong relative to its benchmark index. A number of factors contributed to the fund outperforming its benchmark. In the large-cap sector, value stocks generally outperformed growth stocks, and the fund’s slight value tilt worked well. Furthermore, mid-cap energy stocks performed dramatically better than any other sector and the fund’s exposure to certain of those stocks was a strong contributor to portfolio outperformance.
STRATEGY
Portfolio strategy continued to emphasize security selection and risk-control. Broad diversification across industry groups and economic sectors was a key part of this risk control, as well as minimization of exposures to other benchmark characteristics (i.e., growth vs. value, capitalization, etc.).2
1 The S&P 400 Mid Cap Index is an unmanaged capitalization-weighted index of common stocks representing all major industries in the mid-range of the U.S. stock market. Investments cannot be made in an index.
2 Diversification does not assure a profit nor protect against loss.
Performance data quoted represents past performance which is no guarantee of future results. 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. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Current to the most recent month end performance is available on the Hibernia Funds website at www.Hiberniafunds.com.
Hibernia Mid Cap Equity Fund--Class A Shares
Growth of a $10,000 Investment
The graph below illustrates the hypothetical investment of $10,0001 in the Hibernia Mid Cap Equity Fund--Class A Shares (the “Fund”) from August 31, 19952 to August 31, 2005, compared to the Standard & Poor’s 400 Mid Cap Index (“S&P 400”).3
AVERAGE ANNUAL TOTAL RETURNS4 FOR THE
PERIOD ENDED AUGUST 31, 2005
1 Year | 23.01% | |
5 Years | 4.12% | |
10 Years | 13.62% | |
Performance data quoted represents past performance which is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum sales charge of 4.50%.
1 Represents a hypothetical investment of $10,000 in the Fund after deducting the original maximum sales charge of 4.50% ($10,000 investment minus $450 sales charge = $9,550), which was effective on July 13, 1998. The Fund’s performance assumes the reinvestment of all dividends and distributions. The S&P 400 has been adjusted to reflect reinvestment of dividends on securities in the index.
2 Hibernia Mid Cap Equity Fund--Class A Shares is the successor to a common trust fund. The quoted performance data includes performance of the common trust fund for the period from August 31, 1993 to July 12, 1998 when the Fund first commenced operation, as adjusted to reflect the Fund’s anticipated expenses. The common trust fund was not registered under the Investment Company Act of 1940 (“1940 Act”) and, therefore, was not subject to certain investment restrictions imposed by the 1940 Act. If the common trust fund had been registered under the 1940 Act, the performance may have been adversely affected.
3 The S&P 400 is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. The index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
4 Total returns quoted reflect the current 4.50% sales charge.
Hibernia Mid Cap Equity Fund--Class B Shares
Growth of a $10,000 Investment
The graph below illustrates the hypothetical investment of $10,0001 in the Hibernia Mid Cap Equity Fund--Class B Shares (the “Fund”) from July 13, 1998 (start of performance) to August 31, 2005, compared to the Standard & Poor’s 400 Mid Cap Index (“S&P 400”).2
AVERAGE ANNUAL TOTAL RETURNS3 FOR THE
PERIOD ENDED AUGUST 31, 2005
1 Year | 22.35% | |
5 Years | 3.94% | |
Start of Performance (7/13/98) | 9.80% | |
Performance data quoted represents past performance which is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum contingent deferred sales charge of 5.50% as applicable.
1 Represents a hypothetical investment of $10,000 in the Fund. The ending value of the Fund does not reflect a contingent deferred sales charge on any redemption over seven years from the purchase date. The maximum contingent deferred sales charge is 5.50% on any redemption less than one year from the purchase date. The Fund’s performance assumes the reinvestment of all dividends and distributions. The S&P 400 has been adjusted to reflect reinvestment of dividends on securities in the index.
2 The S&P 400 is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. The index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
3 Total returns quoted reflect all applicable contingent deferred sales charges.
Hibernia Total Return Bond Fund
Annual Report/12-month period from September 1, 2004 through August 31, 2005
MARKET REVIEW
U.S. debt markets performed in line with market expectations during the fund’s fiscal year. The general trend of higher short term rates due to a less accommodative Federal Reserve caused the yield curve to flatten over the reporting period. Fixed income market volatility declined over the fiscal year as a result of a Federal Reserve that adjusted Federal Fund rates by 25 basis points per meeting. The long end of the yield curve remained supported by non-U.S. investors. As a result, longer term maturities outdistanced their shorter counterparts. Bond spread markets performed well across most asset sectors, tightening yield spreads to the general curve over the fiscal year. Sector performance was dominated by credit markets followed by mortgage and government market classes.
In this more restrictive rate environment, the Lehman Brothers Aggregate Bond Index1 produced a total return of approximately 4.15% for the reporting period.
PORTFOLIO PERFORMANCE
The Hibernia Total Return Bond Fund’s Class A Shares produced a total return of 3.39%, based on net asset value for the 12-month period ended August 31, 2005. The fund’s performance was attributable to a defensive position against a market expectation of higher interest rates and tighter yield spreads over the fiscal year.2 Fund allocations to the U.S. agency, mortgage, and corporate bonds increased portfolio interest income and helped to offset the rise in general rate levels throughout the year. In keeping with the strategy of the fund, bonds accounted for over 80% of the portfolio.
The fund did not invest in derivative instruments during the reporting period.
STRATEGY
Portfolio strategy continued to emphasize interest rate risk management, sector and security selection. Risk control was utilized to manage and monitor all of these risks.
1 The Lehman Brothers Aggregate Bond Index is an unmanaged index that tracks investment grade corporate and government bonds. Investments cannot be made in an index.
2 Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices.
Performance data quoted represents past performance which is no guarantee of future results. 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. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Current to the most recent month end performance is available on the Hibernia Funds website at www.Hiberniafunds.com.
Hibernia Total Return Bond Fund
Growth of a $10,000 Investment
The graph below illustrates the hypothetical investment of $10,0001 in the Hibernia Total Return Bond Fund (the “Fund”) from August 31, 1995 to August 31, 2005, compared to the Lehman Brothers Aggregate Bond Index (“LBAB”).2
AVERAGE ANNUAL TOTAL RETURNS3 FOR THE
PERIOD ENDED AUGUST 31, 2005
1 Year | 0.25% | |
5 Years | 4.90% | |
10 Years | 5.08% | |
Performance data quoted represents past performance, which is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum sales charge of 3.00%.
1 Represents a hypothetical investment of $10,000 in the Fund after deducting the maximum sales charge of 3.00% ($10,000 investment minus $300 sales charge = $9,700). The Fund’s performance assumes the reinvestment of all dividends and distributions. The LBAB has been adjusted to reflect reinvestment of income on securities in the index.
2 The LBAB is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. The index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
3 Total returns quoted reflect the current 3.00% sales charge.
Hibernia U.S. Government Income Fund
Annual Report/12-month period from September 1, 2004 through August 31, 2005
MARKET REVIEW
U.S. debt markets performed in line with market expectations during the fund’s fiscal year. The general trend of higher short term rates due to a less accommodative Federal Reserve caused the yield curve to flatten over the reporting period. Fixed income market volatility declined over the fiscal year as a result of a Federal Reserve that adjusted Federal Fund rates by 25 basis points per meeting. The long end of the yield curve remained supported by non-U.S. investors. As a result, longer term maturities outdistanced their shorter counterparts. Bond spread markets performed well across most asset sectors, tightening yield spreads to the general curve over the fiscal year. Sector performance was dominated by credit markets followed by mortgage and government market classes.
In this more restrictive rate environment, the Lehman Brothers Intermediate Term Aggregate Index1 produced a total return of approximately 3.17% for the reporting period.
PORTFOLIO PERFORMANCE
The Hibernia U.S. Government Income Fund’s Class A Shares produced a total return of 2.14%, based on net asset value for the 12 month period ended August 31, 2005. The fund’s performance was attributable to a defensive position against a market expectation of higher interest rates and tighter yield spreads over the fiscal year.2 Fund allocations to the U.S. agency sector increased portfolio interest income and helped to offset the rise in general rate levels throughout the year. In keeping with the high quality of the fund, Treasury, agency, notes and bonds accounted for over 80% of the fund’s portfolio. Corporate bonds were utilized to a lesser degree.
The fund did not invest in derivative instruments during the reporting period.
STRATEGY
Portfolio strategy continued to emphasize interest rate risk management, sector and security selection. Risk control was utilized to manage and monitor all of these risks.
1 Lehman Brothers Intermediate Term Aggregate Index is an unmanaged index that tracks investment grade corporate and government bonds with maturities between one and ten years. Investments cannot be made in an index.
2 Bond prices are sensitive to changes in interest rates and a rise in interest rates can cause a decline in their prices.
Performance data quoted represents past performance which is no guarantee of future results. 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. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Current to the most recent month end performance is available on the Hibernia Funds website at www.Hiberniafunds.com.
Hibernia U.S. Government Income Fund
Growth of a $10,000 Investment
The graph below illustrates the hypothetical investment of $10,0001 in the Hibernia U.S. Government Income Fund (the “Fund”) from August 31, 1995 to August 31, 2005, compared to the Lehman Brothers Intermediate Term Aggregate Index (“LBIA”).2
AVERAGE ANNUAL TOTAL RETURNS3 FOR THE
PERIOD ENDED AUGUST 31, 2005
1 Year | (0.93)% | |
5 Years | 4.83% | |
10 Years | 5.26% | |
Performance data quoted represents past performance, which is no guarantee of future results. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum sales charge of 3.00%.
1 Represents a hypothetical investment of $10,000 in the Fund after deducting the maximum sales charge of 3.00% ($10,000 investment minus $300 sales charge = $9,700). The Fund’s performance assumes the reinvestment of all dividends and distributions. The LBIA has been adjusted to reflect reinvestment of income on securities in the index.
2 The LBIA is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund’s performance. The index is unmanaged, and, unlike the Fund, is not affected by cash flows. It is not possible to invest directly in an index.
3 Total returns quoted reflect the current 3.00% sales charge.
Financial Highlights
Hibernia Funds
August 31, 2005
(For a share outstanding throughout each period)
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Year Ended | Net Asset | Net | Net Realized | Total from | Distributions | Distributions |
Capital Appreciation Fund--Class A Shares | ||||||
2001 | $27.41 | 0.02 | (6.07) | (6.05) | -- | (0.52) |
2002 | $20.84 | 0.04 | (3.44) | (3.40) | (0.02) | (0.92) |
2003 | $16.50 | 0.08(3) | 1.31 | 1.39 | (0.07) | -- |
2004 | $17.82 | 0.08(3) | 1.62 | 1.70 | (0.07) | (1.14) |
2005 | $18.31 | 0.13(3) | 2.26 | 2.39 | (0.15) | (1.13) |
Capital Appreciation Fund--Class B Shares | ||||||
2001 | $26.76 | (0.18) | (5.87) | (6.05) | -- | (0.52) |
2002 | $20.19 | (0.11) | (3.31) | (3.42) | -- | (0.92) |
2003 | $15.85 | (0.04)(3) | 1.25 | 1.21 | -- | -- |
2004 | $17.06 | (0.06)(3) | 1.56 | 1.50 | -- | (1.14) |
2005 | $17.42 | (0.01)(3) | 2.14 | 2.13 | -- | (1.13) |
Louisiana Municipal Income Fund--Class A Shares | ||||||
2001 | $10.85 | 0.53(3) | 0.50 | 1.03 | (0.53) | (0.02) |
2002 | $11.33 | 0.51(4) | 0.07(4) | 0.58 | (0.51) | (0.00)(5) |
2003 | $11.40 | 0.50 | (0.12) | 0.38 | (0.50) | (0.07) |
2004 | $11.21 | 0.48 | 0.17 | 0.65 | (0.47) | (0.03) |
2005 | $11.36 | 0.46 | (0.07) | 0.39 | (0.46) | (0.03) |
Louisiana Municipal Income Fund--Class B Shares | ||||||
2002(6) | $11.36 | 0.34(4) | 0.05(4) | 0.39 | (0.35) | (0.00)(5) |
2003 | $11.40 | 0.40 | (0.12) | 0.28 | (0.40) | (0.07) |
2004 | $11.21 | 0.38 | 0.19 | 0.57 | (0.38) | (0.03) |
2005 | $11.37 | 0.36 | (0.07) | 0.29 | (0.36) | (0.03) |
Mid Cap Equity Fund--Class A Shares | ||||||
2001 | $16.01 | (0.03) | (2.12) | (2.15) | -- | (1.29) |
2002 | $12.57 | (0.02) | (1.01) | (1.03) | -- | (0.08) |
2003 | $11.46 | (0.05)(3) | 1.51 | 1.46 | -- | -- |
2004 | $12.92 | (0.02)(3) | 1.56 | 1.54 | -- | (0.07) |
2005 | $14.39 | 0.03(3) | 4.00 | 4.03 | -- | (0.72) |
Mid Cap Equity Fund--Class B Shares | ||||||
2001 | $15.81 | (0.11) | (2.13) | (2.24) | -- | (1.29) |
2002 | $12.28 | 0.18 | (1.26) | (1.08) | -- | (0.08) |
2003 | $11.12 | (0.14)(3) | 1.46 | 1.32 | -- | -- |
2004 | $12.44 | (0.12)(3) | 1.50 | 1.38 | -- | (0.07) |
2005 | $13.75 | (0.09)(3) | 3.81 | 3.72 | -- | (0.72) |
Total Return Bond Fund | ||||||
2001 | $9.62 | 0.57 | 0.56 | 1.13 | (0.59) | -- |
2002 | $10.16 | 0.52(3)(8) | --(8) | 0.52 | (0.53) | -- |
2003 | $10.15 | 0.45(3) | (0.11) | 0.34 | (0.51) | -- |
2004 | $9.98 | 0.41(3) | (0.05) | 0.36 | (0.45) | -- |
2005 | $9.89 | 0.38(3) | (0.05) | 0.33 | (0.44) | -- |
(1) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.
(2) This voluntary expense decrease is reflected in both the net expense and net investment income ratios.
(3) Based on average shares outstanding.
(4) Effective September 1, 2001 the Louisiana Municipal Income Fund adopted the provisions of the American Institute of Certified Public Accountants(AICPA) Audit and Accounting Guide for Investment Companies and began accreting short and long term discounts on debt securities. For the period ended August 31, 2002 this change had no effect on net investment income per share or net realized and unrealized gain per share, but increased the ratio of net investment income to average net assets from 4.58% to 4.59% for Class A Shares and increased the ratio of net investment income to average net assets from 3.75% to 3.76% for Class B Shares. Per share, ratios and supplemental data for periods prior to September 1, 2001 have not been restated to reflect this change in presentation.
|
|
| Ratio to Average Net Assets |
|
| ||
Total | Net | Total | Net | Net | Expense | Net Assets, End | Portfolio |
(0.52) | $20.84 | (22.37)% | 1.21% | 0.07% | -- | $265,817 | 2% |
(0.94) | $16.50 | (17.18)% | 1.23% | 0.18% | -- | $217,744 | 3% |
(0.07) | $17.82 | 8.46% | 1.27% | 0.48% | -- | $234,905 | 29% |
(1.21) | $18.31 | 9.87% | 1.25% | 0.41% | -- | $239,871 | 22% |
(1.28) | $19.42 | 13.44% | 1.26% | 0.70% | -- | $240,297 | 32% |
(0.52) | $20.19 | (22.93)% | 1.96% | (0.68)% | -- | $15,245 | 2% |
(0.92) | $15.85 | (17.83)% | 1.98% | (0.57)% | -- | $11,849 | 3% |
-- | $17.06 | 7.63% | 2.02% | (0.27)% | -- | $11,865 | 29% |
(1.14) | $17.42 | 9.08% | 2.00% | (0.34)% | -- | $11,981 | 22% |
(1.13) | $18.42 | 12.56% | 2.01% | (0.04)% | -- | $9,077 | 32% |
(0.55) | $11.33 | 9.79% | 0.66% | 4.83% | 0.33% | $98,822 | 9% |
(0.51) | $11.40 | 5.32% | 0.71% | 4.59%(4) | 0.33% | $84,361 | 10% |
(0.57) | $11.21 | 3.33% | 0.74% | 4.36% | 0.33% | $81,468 | 9% |
(0.50) | $11.36 | 5.88% | 0.75% | 4.20% | 0.33% | $78,288 | 11% |
(0.49) | $11.26 | 3.49% | 0.76% | 3.98% | 0.34% | $75,298 | 53% |
(0.35) | $11.40 | 3.60% | 1.59%(7) | 3.76%(4)(7) | 0.23%(7) | $2,824 | 10% |
(0.47) | $11.21 | 2.47% | 1.59% | 3.51% | 0.23% | $4,127 | 9% |
(0.41) | $11.37 | 5.08% | 1.60% | 3.35% | 0.23% | $3,569 | 11% |
(0.39) | $11.27 | 2.60% | 1.61% | 3.13% | 0.24% | $3,342 | 53% |
(1.29) | $12.57 | (14.05)% | 1.58% | (0.21)% | 0.15% | $36,985 | 20% |
(0.08) | $11.46 | (8.27)% | 1.57% | (0.51)% | -- | $42,545 | 12% |
-- | $12.92 | 12.74% | 1.55% | (0.48)% | -- | $59,735 | 25% |
(0.07) | $14.39 | 12.01% | 1.45% | (0.14)% | -- | $74,783 | 51% |
(0.72) | $17.70 | 28.80% | 1.36% | 0.20% | -- | $123,324 | 37% |
(1.29) | $12.28 | (14.86)% | 2.33% | (0.94)% | 0.15% | $3,548 | 20% |
(0.08) | $11.12 | (8.87)% | 2.32% | (1.26)% | -- | $3,450 | 12% |
-- | $12.44 | 11.87% | 2.30% | (1.23)% | -- | $3,795 | 25% |
(0.07) | $13.75 | 11.19% | 2.20% | (0.89)% | -- | $4,321 | 51% |
(0.72) | $16.75 | 27.85% | 2.11% | (0.56)% | -- | $5,025 | 37% |
(0.59) | $10.16 | 12.08% | 0.97% | 5.79% | 0.30% | $71,060 | 8% |
(0.53) | $10.15 | 5.39% | 1.01% | 5.18%(8) | 0.30% | $47,428 | 0% |
(0.51) | $9.98 | 3.38% | 1.01% | 4.38% | 0.40% | $48,563 | 20% |
(0.45) | $9.89 | 3.72% | 1.01% | 4.08% | 0.40% | $51,957 | 22% |
(0.44) | $9.78 | 3.39% | 0.98% | 3.92% | 0.41% | $53,319 | 123% |
(5) Represents less than $0.01.
(6) Reflects operations for the period from November 15, 2001(date of initial public offering) to August 31, 2002.
(7) Computed on an annualized basis.
(8) Effective September 1, 2001, the Total Return Bond Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premiums on long term debt securities. The effect of this change for the fiscal year ended August 31, 2002 was to decrease net investment income per share by $0.01, increase net realized and unrealized gain/loss per share by $0.01, and decrease the ratio of net investment income to average net assets from 5.34% to 5.18%. Per share, ratios and supplemental data for periods prior to September 1, 2001 have not been restated to reflect this change in presentation.
Financial Highlights(continued)
Hibernia Funds
August 31, 2005
(For a share outstanding throughout each period)
|
|
|
|
|
|
Year Ended | Net Asset Value, | Net Investment | Net Realized and | Total from | Distributions from |
U.S. Government Income Fund | |||||
2001 | $9.85 | 0.59 | 0.46 | 1.05 | (0.60) |
2002 | $10.30 | 0.61(3) | 0.13(3) | 0.74 | (0.56) |
2003 | $10.48 | 0.42(4) | (0.11) | 0.31 | (0.49) |
2004 | $10.30 | 0.38(4) | 0.03 | 0.41 | (0.41) |
2005 | $10.30 | 0.38(4) | (0.16) | 0.22 | (0.45) |
Cash Reserve Fund--Class A Shares | |||||
2001 | $1.00 | 0.05 | -- | 0.05 | (0.05) |
2002 | $1.00 | 0.01 | (0.00)(5) | 0.01 | (0.01) |
2003 | $1.00 | 0.01 | 0.00(5) | 0.01 | (0.01) |
2004 | $1.00 | 0.005 | 0.000(6) | 0.005 | (0.005) |
2005 | $1.00 | 0.019 | (0.000)(6) | 0.019 | (0.019) |
Cash Reserve Fund--Class B Shares | |||||
2001 | $1.00 | 0.04 | -- | 0.04 | (0.04) |
2002 | $1.00 | 0.01 | (0.00)(5) | 0.01 | (0.01) |
2003 | $1.00 | 0.01 | 0.00(5) | 0.01 | (0.01) |
2004 | $1.00 | 0.003 | 0.001 | 0.004 | (0.004) |
2005 | $1.00 | 0.018 | (0.000)(6) | 0.018 | (0.018) |
U.S. Treasury Money Market Fund | |||||
2001 | $1.00 | 0.05 | -- | 0.05 | (0.05) |
2002 | $1.00 | 0.01 | -- | 0.01 | (0.01) |
2003 | $1.00 | 0.01 | -- | 0.01 | (0.01) |
2004 | $1.00 | 0.003 | -- | 0.003 | (0.003) |
2005 | $1.00 | 0.017 | (0.000)(6) | 0.017 | (0.017) |
(1) Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods less than one year are not annualized.
(2) This voluntary expense decrease is reflected in both the net expense and net investment income ratios.
(3) Effective September 1, 2001, the U.S. Government Income Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premiums on long term debt securities. The effect of this change for the fiscal year ended August 31, 2002 was to decrease net investment income per share by $0.05, increase net realized and unrealized gain/loss per share by $0.05, and decrease the ratio of net investment income to average net assets from 5.41% to 4.87%. Per share, ratios and supplemental data for periods prior to September 1, 2001 have not been restated to reflect this change in presentation.
|
| Ratio to Average Net Assets |
|
| ||
Net Asset | Total | Net | Net | Expense | Net Assets, | Portfolio |
$10.30 | 10.95% | 0.68% | 5.83% | 0.31% | $85,017 | 27% |
$10.48 | 7.39% | 0.69% | 4.87%(3) | 0.31% | $85,093 | 39% |
$10.30 | 3.01% | 0.70% | 3.97% | 0.31% | $89,573 | 31% |
$10.30 | 4.08% | 0.70% | 3.71% | 0.31% | $82,231 | 29% |
$10.07 | 2.14% | 0.74% | 3.74% | 0.33% | $71,695 | 86% |
$1.00 | 4.66% | 0.90% | 4.47% | -- | $244,254 | -- |
$1.00 | 1.27% | 0.84% | 1.28% | 0.06% | $212,320 | -- |
$1.00 | 0.80% | 0.53% | 0.81% | 0.40% | $182,575 | -- |
$1.00 | 0.55% | 0.56% | 0.55% | 0.40% | $166,616 | -- |
$1.00 | 1.97% | 0.56% | 1.89% | 0.42% | $134,356 | -- |
$1.00 | 3.88% | 1.65% | 3.34% | -- | $509 | -- |
$1.00 | 0.84% | 1.30% | 0.81% | 0.35% | $696 | -- |
$1.00 | 0.57% | 0.89% | 0.45% | 0.79% | $677 | -- |
$1.00 | 0.40% | 0.71% | 0.39% | 1.00% | $417 | -- |
$1.00 | 1.81% | 0.71% | 1.78% | 1.02% | $387 | -- |
$1.00 | 4.68% | 0.64% | 4.56% | -- | $210,102 | -- |
$1.00 | 1.38% | 0.62% | 1.37% | -- | $193,535 | -- |
$1.00 | 0.62% | 0.65% | 0.61% | -- | $221,334 | -- |
$1.00 | 0.34% | 0.66% | 0.34% | -- | $152,264 | -- |
$1.00 | 1.69% | 0.70% | 1.74% | -- | $204,027 | -- |
(4) Based on average shares outstanding.
(5) Represents less than $0.01.
(6) Represents less than $0.001.
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees; to the extent applicable, distribution (12b-1) fees and/or shareholder services fees; and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from March 1, 2005 to August 31, 2005.
Actual Expenses
The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses attributable to your investment during this period.
Hypothetical Example for Comparison Purposes
The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are provided to enable you 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 transaction cost, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section 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 transaction costs were included, your costs would have been higher.
| Beginning | Ending | Expenses Paid |
Hibernia Capital Appreciation Fund |
|
|
|
Actual | |||
Class A Shares | $1,000 | $ 1,018.90 | $6.51 |
Class B Shares | $1,000 | $1,014.90 | $10.26 |
Hypothetical (assuming a 5% return before expenses) |
|
|
|
Class A Shares | $1,000 | $1,018.75 | $6.51 |
Class B Shares | $1,000 | $1,015.02 | $10.26 |
Hibernia Louisiana Municipal Income Fund |
|
|
|
Actual | |||
Class A Shares | $1,000 | $1,017.30 | $3.86 |
Class B Shares | $1,000 | $1,012.90 | $8.17 |
Hypothetical (assuming a 5% return before expenses) |
|
|
|
Class A Shares | $1,000 | $1,021.37 | $3.87 |
Class B Shares | $1,000 | $1,017.09 | $8.19 |
Hibernia Mid Cap Equity Fund |
|
|
|
Actual |
|
|
|
Class A Shares | $1,000 | $1,085.20 | $7.04 |
Class B Shares | $1,000 | $1,081.30 | $10.96 |
Hypothetical (assuming a 5% return before expenses) |
|
|
|
Class A Shares | $1,000 | $1,018.45 | $6.82 |
Class B Shares | $1,000 | $ 1,014.67 | $10.61 |
Hibernia Total Return Bond Fund |
|
|
|
Actual | $1,000 | $ 1,025.40 | $ 5.00 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,020.27 | $4.99 |
Hibernia U.S. Government Income Fund |
|
|
|
Actual | $1,000 | $1,017.60 | $3.76 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,021.48 | $3.77 |
Hibernia Cash Reserve Fund |
|
|
|
Actual | |||
Class A Shares | $1,000 | $1,012.40 | $2.79 |
Class B Shares | $1,000 | $1,011.70 | $3.55 |
Hypothetical (assuming a 5% return before expenses) |
|
|
|
Class A Shares | $1,000 | $1,022.43 | $2.80 |
Class B Shares | $1,000 | $1,021.68 | $3.57 |
Hibernia U.S. Treasury Money Market Fund |
|
|
|
Actual | $1,000 | $1,011.00 | $3.60 |
Hypothetical (assuming a 5% return before expenses) | $1,000 | $1,021.63 | $3.62 |
(1) Expenses are equal to the Funds’ annualized expense ratios multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). The annualized expense ratios are as follows:
Capital Appreciation Fund |
|
Class A Shares | 1.28% |
Class B Shares | 2.02% |
Louisiana Municipal Income Fund |
|
Class A Shares | 0.76% |
Class B Shares | 1.61% |
Mid Cap Equity Fund |
|
Class A Shares | 1.34% |
Class B Shares | 2.09% |
Total Return Bond Fund | 0.98% |
U.S. Government Income Fund | 0.74% |
Cash Reserve Fund |
|
Class A Shares | 0.55% |
Class B Shares | 0.70% |
U.S. Treasury Money Market Fund | 0.71% |
Portfolio of Investments Summary Table
CAPITAL APPRECIATION FUND
At August 31, 2005, the Fund’s portfolio composition(1) was as follows:
EQUITIES | Percentage |
Finance | 19.5% |
Electronic Technology | 10.0% |
Health Technology | 8.9% |
Energy Minerals | 8.0% |
Consumer Non-Durables | 7.3% |
Retail Trade | 7.2% |
Technology Services | 7.0% |
Producer Manufacturing | 6.7% |
Utilities | 4.8% |
Consumer Services | 3.4% |
Communications | 3.2% |
Commercial Services | 2.4% |
Distribution Services | 2.4% |
Health Services | 1.9% |
Process Industries | 1.6% |
Transportation | 1.6% |
Non-Energy Minerals | 1.5% |
Industrial Services | 1.4% |
Consumer Durables | 1.0% |
TOTAL EQUITIES PORTFOLIO VALUE | 99.8% |
Cash Equivalents(3) | 0.2% |
TOTAL | 100.0% |
(1) Except for Cash Equivalents, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.
(2) Percentages are based on total investments, which may differ from the Fund’s total net assets used in computing the percentages in the Portfolio of Investments which follows.
(3) Cash Equivalents includes any investments in money market mutual funds and/or overnight repurchase agreements.
Portfolio of Investments
Hibernia Funds
August 31, 2005
CAPITAL APPRECIATION FUND
Shares | Value | ||
| COMMON STOCKS--99.6% |
| |
| Commercial Services--2.4% |
| |
40,000 | McGraw-Hill Cos., Inc. | $ 1,928,800 | |
80,800 | Moody’s Corp. | 3,968,088 | |
| Total | 5,896,888 | |
| Communications--3.2% |
| |
140,000 | AT&T Corp. | 2,755,200 | |
199,599 | Sprint Nextel Corp. | 5,175,602 | |
| Total | 7,930,802 | |
| Consumer Durables--1.0% |
| |
50,000 | Harley Davidson, Inc. | 2,463,000 | |
| Consumer Non-Durables--7.3% |
| |
54,000 | Altria Group, Inc. | 3,817,800 | |
47,000 | (1) Coach, Inc. | 1,559,930 | |
127,000 | PepsiCo, Inc. | 6,965,950 | |
55,000 | Procter & Gamble Co. | 3,051,400 | |
150,000 | Tyson Foods, Inc., Class A | 2,667,000 | |
| Total | 18,062,080 | |
| Consumer Services--3.3% |
| |
50,000 | McDonald’s Corp. | 1,622,500 | |
319,000 | Time Warner, Inc. | 5,716,480 | |
38,700 | Walt Disney Co. | 974,853 | |
| Total | 8,313,833 | |
| Distribution Services--2.3% |
| |
125,000 | McKesson HBOC, Inc. | 5,833,750 | |
| Electronic Technology--10.0% |
| |
20,000 | Amphenol Corp., Class A | 848,200 | |
35,000 | (1) Apple Computer, Inc. | 1,642,550 | |
224,720 | (1) Cisco Systems, Inc. | 3,959,566 | |
107,900 | (1) Dell, Inc. | 3,841,240 | |
201,432 | Intel Corp. | 5,180,831 | |
75,000 | (1) MEMC Electronic Materials | 1,264,500 | |
139,200 | National Semiconductor Corp. | 3,470,256 | |
64,600 | Northrop Grumman Corp. | 3,623,414 | |
30,000 | Scientific-Atlanta, Inc. | 1,147,800 | |
| Total | 24,978,357 | |
| Energy Minerals--8.0% |
| |
9,800 | Anadarko Petroleum Corp. | $ 890,526 | |
35,300 | Apache Corp. | 2,528,186 | |
40,000 | Chevron Corp. | 2,456,000 | |
109,000 | ConocoPhillips | 7,187,460 | |
114,500 | ExxonMobil Corp. | 6,858,550 | |
| Total | 19,920,722 | |
| Finance--19.5% |
| |
55,000 | Allstate Corp. | 3,091,550 | |
155,000 | Bank of America Corp. | 6,669,650 | |
60,000 | Bear Stearns Cos., Inc. | 6,030,000 | |
35,000 | Citigroup, Inc. | 1,531,950 | |
129,600 | Countrywide Financial Corp. | 4,379,184 | |
29,400 | Equity Office Properties Trust | 979,020 | |
65,000 | Golden West Financial Corp. | 3,964,350 | |
20,000 | Goldman Sachs Group, Inc. | 2,223,600 | |
52,000 | J.P. Morgan Chase & Co. | 1,762,280 | |
30,000 | Lehman Brothers Holdings, Inc. | 3,169,800 | |
39,200 | MetLife, Inc. | 1,920,016 | |
40,000 | Prudential Financial, Inc. | 2,574,800 | |
206,100 | UNUMProvident Corp. | 3,981,852 | |
87,197 | Wachovia Corp. | 4,326,715 | |
48,780 | Washington Mutual Bank FA | 2,028,273 | |
| Total | 48,633,040 | |
| Health Services--1.9% |
| |
60,000 | Aetna, Inc. | 4,780,200 | |
| Health Technology--8.9% |
| |
48,800 | (1) Amgen, Inc. | 3,899,120 | |
20,000 | (1) Barr Laboratories, Inc. | 912,200 | |
129,800 | Johnson & Johnson | 8,228,022 | |
100,000 | Merck & Co., Inc. | 2,823,000 | |
103,700 | Pfizer, Inc. | 2,641,239 | |
45,000 | (1) Zimmer Holdings, Inc. | 3,697,650 | |
| Total | 22,201,231 | |
| Industrial Services--1.4% |
| |
60,000 | (1) Transocean Sedco Forex, Inc. | 3,542,400 | |
| Non-Energy Minerals--1.5% |
| |
35,000 | Phelps Dodge Corp. | 3,763,550 | |
| COMMON STOCKS--continued |
| |
| Process Industries--1.6% |
| |
51,000 | Air Products & Chemicals, Inc. | $ 2,825,400 | |
19,600 | Sigma-Aldrich Corp. | 1,223,040 | |
| Total | 4,048,440 | |
| Producer Manufacturing--6.7% |
| |
58,400 | 3M Co. | 4,155,160 | |
35,000 | (1) Energizer Holdings, Inc. | 2,271,500 | |
151,500 | General Electric Co. | 5,091,915 | |
26,550 | Graco, Inc. | 987,926 | |
29,400 | PACCAR, Inc. | 2,060,352 | |
30,200 | Textron Inc. | 2,153,260 | |
| Total | 16,720,113 | |
| Retail Trade--7.2% |
| |
94,000 | Home Depot, Inc. | 3,790,080 | |
73,600 | SUPERVALU, Inc. | 2,561,280 | |
45,000 | Sherwin-Williams Co. | 2,086,200 | |
325,500 | TJX Cos., Inc. | 6,806,205 | |
50,100 | Target Corp. | 2,692,875 | |
| Total | 17,936,640 | |
| Technology Services--7.0% |
| |
35,000 | (1) Cognizant Technology Solutions Corp. | 1,593,550 | |
35,000 | (1) Computer Sciences Corp. | 1,559,250 | |
42,720 | IBM Corp. | 3,444,086 | |
275,000 | Microsoft Corp. | 7,535,000 | |
159,800 | (1) Symantec Corp. | 3,352,604 | |
| Total | 17,484,490 | |
| Transportation--1.6% |
| |
15,000 | Burlington Northern Santa Fe Corp. | 795,300 | |
40,000 | FedEx Corp. | 3,257,600 | |
| Total | 4,052,900 | |
| Utilities--4.8% |
| |
77,200 | Exelon Corp. | 4,160,308 | |
100,000 | Questar Corp. | 7,802,000 | |
| Total | 11,962,308 | |
| TOTAL COMMON STOCKS | 248,524,744 | |
| MUTUAL FUND--0.2% |
| |
380,000 | Fidelity Institutional Cash Treasury Money Market Fund | $ 380,000 | |
| TOTAL INVESTMENTS--99.8% | 248,904,744 | |
| OTHER ASSETS AND LIABILITIES--NET--0.2% | 469,325 | |
| TOTAL NET ASSETS--100% | $ 249,374,069 | |
Portfolio of Investments Summary Table
LOUISIANA MUNICIPAL INCOME FUND
At August 31, 2005, the Fund’s portfolio composition(1) was as follows:
| Percentage |
Special Revenue | 32.4% |
General Obligation | 21.2% |
Miscellaneous | 18.0% |
Education | 8.4% |
Mortgage | 7.0% |
Sales Tax | 7.0% |
Utilities | 4.0% |
Transportation | 1.7% |
Hospitals | 0.3% |
TOTAL | 100.0% |
At August 31, 2005, the Fund’s credit quality ratings composition(3) was as follows:
S&P Long-Term Ratings as | Moody’s Long-Term Ratings as | |||||||
AAA |
| 81.5 | % |
| Aaa |
| 75.7 | % |
AA |
| 4.3 | % |
| Aa |
| 2.5 | % |
Not Rated by S&P |
| 14.2 | % |
| Not Rated by Moody’s |
| 21.8 | % |
TOTAL |
| 100.0 | % |
| TOTAL |
| 100.0 | % |
(1) See the Fund’s Prospectus for a description of the principal types of securities in which the Fund invests.
(2) Percentages are based on total investments, which may differ from the Fund’s total net assets used in computing the percentages in the Portfolio of Investments which follows.
(3) These tables depict the long-term credit quality ratings assigned to the Fund’s portfolio holdings by Standard & Poor’s (S&P) and Moody’s Investors Service (Moody’s), each of which is a Nationally Recognized Statistical Ratings Organization (NRSRO). These credit quality ratings are shown without regard to gradations within a given rating category. For example, securities rated “A-” have been included in the “A” rated category. Rated securities that have been prerefunded, but not rated again by the NRSRO, also have been included in the “Not rated by…” category.
Rated securities include a security with an obligor and/or credit enhancer that has received a rating from an NRSRO with respect to a class of debt obligations that is comparable in priority and security with the security held by the Fund. Credit quality ratings are an assessment of the risk that a security will default in payment and do not address other risks presented by the security. Please see the description of credit quality ratings in the Fund’s Statement of Additional Information.
Holdings that are rated only by a different NRSRO than the one identified have been included in the “Not rated by…” category. Of the portfolio’s total investments, all securities have received a rating by an NRSRO. Credit ratings are not audited.
LOUISIANA MUNICIPAL INCOME FUND
Principal | Credit | Value | ||
| (3) MUNICIPAL BONDS--89.1% |
|
| |
| Alaska--1.9% |
|
| |
$ 1,500,000 | Alaska State Housing Finance Corp., 2.47%, 12/1/2030 | AAA | $ 1,500,000 | |
| Guam--1.5% |
|
| |
1,020,000 | Guam Airport Authority, Revenue Bonds (Series A), 5.25% (MBIA Insurance Corp. INS), 10/1/2014 | AAA | 1,137,473 | |
| Louisiana--80.5% |
|
| |
500,000 | Bossier City, LA, Refunding Revenue Bonds, 5.20% (FGIC INS)/(Original Issue Yield: 5.35%), 11/1/2014 | AAA | 521,580 | |
1,000,000 | Calcasieu Parish, LA, IDB, Sales Tax, 5.50% (AMBAC INS), 11/1/2019 | AAA | 1,053,570 | |
1,000,000 | East Baton Rouge Parish, LA, LT GO, 4.25% (FSA INS)/(Original Issue Yield: 4.39%), 5/1/2018 | AAA | 1,021,850 | |
2,475,000 | East Baton Rouge Parish, LA, Refunding Revenue Bonds (Series ST), 8.00% (FGIC INS), 2/1/2006 | AAA | 2,526,678 | |
705,000 | East Baton Rouge Parish, LA, Refunding Revenue Bonds (Series ST-B), 4.00% (AMBAC INS), 2/1/2008 | AAA | 716,315 | |
750,000 | East Baton Rouge Parish, LA, Refunding Revenue Bonds, 5.00% (FGIC INS)/(Original Issue Yield: 4.72%), 2/1/2013 | AAA | 791,520 | |
1,500,000 | East Baton Rouge Parish, LA, Refunding Revenue Bonds, 5.40% (FGIC INS)/(Original Issue Yield: 5.85%), 2/1/2018 | AAA | 1,538,700 | |
205,000 | East Baton Rouge, LA, Mortgage Finance Authority, SFM Purchasing Revenue Bonds (Series B), 5.40% (FNMA COL), 10/1/2025 | Aaa | 205,141 | |
$ 30,000 | East Baton Rouge, LA, Mortgage Finance Authority, SFM Refunding Revenue Bonds (Series C), 7.00% (FNMA/GNMA INS), 4/1/2032 | Aaa | $ 30,043 | |
270,000 | Ernest N. Morial-New Orleans, LA, Exhibit Hall Authority, (Series C), 5.50% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.58%), 7/15/2018 | AAA | 278,518 | |
200,000 | Ernest N. Morial-New Orleans, LA, Exhibit Hall Authority, Special Tax, 5.60% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.65%), 7/15/2025 | AAA | 205,986 | |
125,000 | Ernest N. Morial-New Orleans, LA, Exhibit Hall Authority, Special Tax, 5.60% (MBIA Insurance Corp. INS)/(Original Issue Yield: 5.65%), 7/15/2025 | AAA | 129,220 | |
1,300,000 | Harahan, LA, Refunding Bonds, 6.10% (Radian Asset Assurance INS), 6/1/2024 | AA | 1,431,612 | |
1,240,000 | Jefferson Parish, LA, Home Mortgage Authority, Refunding Revenue Bonds (Series A), 6.15% (FNMA and GNMA COLs), 6/1/2028 | AAA | 1,281,094 | |
500,000 | Jefferson Parish, LA, Home Mortgage Authority, Revenue Bonds, 5.85% (FNMA and GNMA COLs), 12/1/2028 | AAA | 534,070 | |
700,000 | Jefferson Parish, LA, School Board, GO UT, 5.10% accrual (FSA INS)/(Original Issue Yield: 5.10%), 3/1/2010 | AAA | 600,320 | |
1,340,000 | Jefferson Parish, LA, School Board, Revenue Bonds, 3.75% (AMBAC INS), 2/1/2010 | AAA | 1,367,336 | |
680,000 | Jefferson, LA, Sales Tax District Special Sales Tax Revenue, (Series B), 5.75% (AMBAC INS)/(Original Issue Yield: 5.20%), 12/1/2014 | AAA | 779,477 | |
| (3) MUNICIPAL BONDS--continued |
|
| |
| Louisiana--continued |
|
| |
$ 1,745,000 | Jefferson, LA, Sales Tax District Special Sales Tax Revenue, Revenue Bonds - Public Imps., 4.00% (AMBAC INS), 12/1/2007 | AAA | $ 1,782,168 | |
500,000 | Lafayette Parish, LA, School Board, Refunding Revenue Bonds, 4.50% (FGIC INS)/(Original Issue Yield: 4.85%), 4/1/2013 | AAA | 518,965 | |
1,500,000 | Lafayette, LA, Public Improvement Sales Tax, (Series A), 5.625% (FGIC INS)/(Original Issue Yield: 5.69%), 3/1/2025 | AAA | 1,648,260 | |
1,305,000 | Lafayette, LA, Public Power Authority, (Series A), 5.00% (AMBAC INS)/(Original Issue Yield: 2.47%), 11/1/2008 | AAA | 1,380,481 | |
5,000 | Louisiana HFA, SFM Revenue Bonds (Series | Aaa | 5,046 | |
220,000 | Louisiana HFA, SFM Revenue Bonds (Series 2005A), 3.85% (GNMA Collateralized Home Mortgage Program COL), 12/1/2012 | Aaa | 223,810 | |
150,000 | Louisiana HFA, SFM Revenue Bonds (Series 2005A), 3.95% (GNMA Collateralized Home Mortgage Program COL), 12/1/2013 | Aaa | 152,467 | |
135,000 | Louisiana HFA, SFM Revenue Bonds (Series 2005A), 4.05% (GNMA Collateralized Home Mortgage Program COL), 12/1/2014 | Aaa | 137,005 | |
$ 310,000 | Louisiana HFA, SFM Revenue Bonds (Series 2005A), 4.30% (GNMA Collateralized Home Mortgage Program COL), 12/1/2017 | Aaa | $ 314,476 | |
1,000,000 | Louisiana Local Government Environmental Facilities Community Development Authority, (Series A) Revenue Bonds, 5.20% (AMBAC INS) (Original Issue Yield: 5.30%), 6/1/2031 | Aaa | 1,059,560 | |
1,835,000 | Louisiana Local Government Environmental Facilities Community Development Authority, 5.50% (MBIA Insurance Corp. INS), 12/1/2012 | AAA | 2,069,348 | |
150,000 | Louisiana Local Government Environmental Facilities Community Development Authority, Refunding Revenue Bonds, 4.70% (MBIA Insurance Corp. INS) (Original Issue Yield: 4.85%), 10/1/2005 | AAA | 150,229 | |
1,500,000 | Louisiana Local Government Environmental Facilities Community Development Authority, Refunding Revenue Bonds, 5.00% (MBIA Insurance Corp. INS), 12/1/2032 | AAA | 1,569,945 | |
215,000 | Louisiana PFA, Hospital Refunding Revenue Bonds, 5.00% (Louisiana Health System Corporate Project)/(FSA INS)/(Original Issue Yield: 5.10%), 10/1/2013 | AAA | 229,349 | |
1,045,000 | Louisiana PFA, (Series A) Refunding Revenue Bonds, 5.125% (AMBAC INS) (Tulane University, LA)/(Original Issue Yield: 5.25%), 7/1/2027 | AAA | 1,109,362 | |
750,000 | Louisiana PFA, 4.50%, 10/15/2010 | AAA | 792,000 | |
| (3) MUNICIPAL BONDS--continued |
|
| |
| Louisiana--continued |
|
| |
$ 1,500,000 | Louisiana PFA, FHA INS Mortgage Revenue Bonds, 5.25% (Baton Rouge General Medical Center), 7/1/2033 | AAA | 1,592,400 | |
1,000,000 | Louisiana PFA, Refunding Revenue Bonds (Series A), 5.00% (Tulane University, LA)/(AMBAC INS)/(Original Issue Yield: 5.15%), 7/1/2022 | AAA | $ 1,075,930 | |
1,000,000 | Louisiana PFA, Revenue Bonds, 5.00% (FSA INS)/(Original Issue Yield: 5.38%), 8/1/2017 | AAA | 1,069,420 | |
500,000 | Louisiana PFA, Revenue Bonds, 5.10% (Tulane University, LA)/(MBIA Insurance Corp. INS)/(Original Issue Yield: 5.27%), 11/15/2021 | AAA | 528,315 | |
1,890,000 | Louisiana PFA, Refunding Revenue Bonds (Series A), 6.75% (Bethany Home Project)/(FHA GTD), 8/1/2025 | AAA | 1,892,211 | |
1,000,000 | Louisiana PFA, Refunding Revenue Bonds, 5.45% (AMBAC INS)/(Original Issue Yield: 5.45%), 2/1/2013 | Aaa | 1,043,340 | |
1,500,000 | Louisiana Stadium and Expo District, Revenue Bonds, 5.75% (FGIC INS)/(Original Issue Yield: 5.85%), 7/1/2026 | AAA | 1,565,640 | |
1,000,000 | Louisiana State Office Facilities, Refunding Revenue Bonds, 4.70% (MBIA Insurance Corp. INS)/(Original Issue Yield: 4.79%), 11/1/2022 | AAA | 1,036,240 | |
1,000,000 | Louisiana State Office Facilities, Refunding Revenue Bonds, 4.75% (MBIA Insurance Corp. INS)/(Original Issue Yield: 4.88%), 11/1/2023 | AAA | 1,037,290 | |
$ 750,000 | Louisiana State University and Agricultural and Mechanical College, Refunding Revenue Bonds (Auxiliary Series A), 4.00% (AMBAC INS), 7/1/2012 | AAA | $ 776,048 | |
1,250,000 | Louisiana State University and Agricultural and Mechanical College, University & College Improvement Refunding Revenue Bonds, 5.00% (University of New Orleans Project)/(AMBAC INS), 10/1/2030 | AAA | 1,316,975 | |
1,500,000 | Louisiana State, (Series A), 5.00% (FGIC INS)/(Original Issue Yield: 5.23%), 11/15/2015 | AAA | 1,628,835 | |
1,000,000 | Louisiana State, GO UT (Series B), 5.00% (FSA INS)/(Original Issue Yield: 5.17%), 4/15/2018 | AAA | 1,059,600 | |
250,000 | New Orleans, LA, Aviation Board, Refunding Revenue Bonds, 6.00% (FSA INS)/(Original Issue Yield: 6.16%), 9/1/2019 | AAA | 251,848 | |
975,000 | New Orleans, LA, Home Mortgage Authority, Special Obligation Revenue Bonds, 6.25% (United States Treasury/REFCO Strips COL)/(Original Issue Yield: 6.518%), 1/15/2011 | Aaa | 1,102,988 | |
980,000 | New Orleans, LA, GO UT Refunding Bonds, 5.875% (AMBAC INS)/(Original Issue Yield: 6.00%), 10/1/2011 | AAA | 992,319 | |
1,455,000 | New Orleans, LA, LT GO, 3.00% (MBIA Insurance Corp. INS), 3/1/2007 | AAA | 1,453,778 | |
| (3) MUNICIPAL BONDS--continued |
|
| |
| Louisiana--continued |
|
| |
$ 1,145,000 | Orleans, LA Levee District, Refunding Revenue Bonds (Series A), 5.95% (FSA INS)/(Original Issue Yield: 6.039%), 11/1/2014 | AAA | $ 1,186,907 | |
790,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT, 5.75% (FGIC INS)/(Original Issue Yield: 5.78%), 3/1/2020 | AAA | 875,273 | |
780,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT, 5.75% (FGIC INS)/(Original Issue Yield: 5.81%), 3/1/2021 | AAA | 864,193 | |
1,020,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT, 5.75% (FGIC INS)/(Original Issue Yield: 5.85%), 3/1/2024 | AAA | 1,130,099 | |
80,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT Refunding Bonds, 3.00% (MBIA Insurance Corp. INS), 3/1/2006 | AAA | 80,062 | |
85,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT Refunding Bonds, 3.00% (MBIA Insurance Corp. INS), 3/1/2007 | AAA | 85,040 | |
85,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT Refunding Bonds, 3.25% (MBIA Insurance Corp. INS), 3/1/2008 | AAA | 85,370 | |
90,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT Refunding Bonds, 3.25% (MBIA Insurance Corp. INS), 3/1/2009 | AAA | 90,290 | |
$ 575,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT Refunding Bonds, 4.00% (MBIA Insurance Corp. INS), 3/1/2011 | AAA | $ 593,780 | |
705,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT Refunding Bonds, 4.00% (MBIA Insurance Corp. INS)/(Original Issue Yield: 4.06%), 3/1/2015 | AAA | 718,867 | |
535,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT Refunding Bonds, 4.00% (MBIA Insurance Corp. INS)/ (Original Issue Yield: 4.15%), 3/1/2016 | AAA | 542,827 | |
95,000 | Ouachita Parish, LA, East Ouachita Parish School District, GO UT, 3.50% (MBIA Insurance Corp. INS), 3/1/2010 | AAA | 95,967 | |
2,500,000 | Rapides Parish, LA, Industrial Development, Refunding Revenue Bonds, 5.875% (AMBAC INS)/(Original Issue Yield: 5.95%), 9/1/2029 | AAA | 2,771,300 | |
1,000,000 | Shreveport, LA, GO UT Public Improvement Bonds, 5.00% (FGIC INS), 3/1/2017 | AAA | 1,054,570 | |
870,000 | Shreveport, LA, GO UT (Series A), 4.00% (FGIC INS)/(Original Issue Yield: 4.03%) 11/1/2012 | AAA | 893,473 | |
750,000 | Shreveport, LA, Revenue Bonds (Series A), 5.375% (FSA INS), 1/1/2028 | AAA | 781,815 | |
500,000 | Shreveport, LA, Revenue Bonds (Series B), 5.375% (FSA INS), 1/1/2024 | AAA | 526,960 | |
815,000 | Shreveport, LA, Water & Sewer, (Series C), 4.00% (FGIC INS)/(Original Issue Yield: 3.80%), 6/1/2014 | AAA | 838,505 | |
| (3) MUNICIPAL BONDS--continued |
|
| |
| Louisiana--continued |
|
| |
$ 1,000,000 | St. Charles Parish, LA, Public Improvement, 3.50% (AMBAC INS), 12/1/2008 | AAA | $ 1,011,870 | |
1,000,000 | St. Charles Parish, LA, Solid Waste Disposal Revenue Bonds, 7.00% (LA Power & Light Co.)/(AMBAC INS)/(Original Issue Yield: 7.04%), 12/1/2022 | AAA | 1,001,050 | |
500,000 | St. Tammany Parish, LA, Wide School District No. 12, GO UT Bonds, 5.375% (FSA INS), 3/1/2013 | AAA | 506,510 | |
| Total |
| 63,313,406 | |
| Missouri--2.3% |
|
| |
1,840,000 | Wentzville, MO, School District No. R 04, GO UT (Series PG-A), 4.00% (XL Capital Assurance Inc. INS), 3/1/2020 | Aaa | 1,843,294 | |
| North Carolina--2.9% |
|
| |
2,250,000 | Johnston County, NC, GO UT, 4.00% (FGIC INS), 2/1/2021 | AAA | 2,261,363 | |
| TOTAL MUNICIPAL BONDS |
| 70,055,536 | |
| SHORT-TERM MUNICIPALS--5.7% |
|
| |
| North Carolina--2.5% |
|
| |
2,000,000 | North Carolina Medical Care Commission, (Series 1992B), 2.48% Weekly VRDNs (Wachovia Bank LOC) (North Carolina Baptist), 12/1/6/1/2022 | AA- | 2,000,000 | |
Principal | Credit | Value | ||
| Pennsylvania--3.2% |
|
| |
$ 2,500,000 | Delaware County, PA, IDA, Refunding Revenue Bonds, 2.31% Daily VRDNs, 12/1/2015 | AAA | $ 2,500,000 | |
| TOTAL SHORT-TERM MUNICIPALS |
| 4,500,000 | |
| TOTAL MUNICIPAL INVESTMENTS (identified cost $71,801,688) |
| 74,555,536 | |
| MUTUAL FUND--6.6% |
|
| |
5,162,094 | (4) Tax-Free Obligations Fund, IS Shares | AAA | 5,162,094 | |
| TOTAL INVESTMENTS--101.4% |
| 79,717,630 | |
| OTHER ASSETS AND LIABILITIES--NET--(1.4)% |
| (1,077,720) | |
| TOTAL NET ASSETS--100% |
| $ 78,639,910 | |
MID CAP EQUITY FUND
At August 31, 2005, the Fund’s portfolio composition(1) was as follows:
EQUITIES | Percentage |
Finance | 17.4% |
Electronic Technology | 8.0% |
Utilities | 7.7% |
Commercial Services | 7.2% |
Retail Trade | 7.2% |
Health Technology | 6.3% |
Health Services | 5.6% |
Consumer Durables | 5.4% |
Consumer Non-Durables | 4.9% |
Non-Energy Minerals | 4.6% |
Producer Manufacturing | 4.5% |
Energy Minerals | 3.5% |
Transportation | 3.5% |
Industrial Services | 3.2% |
Process Industries | 2.7% |
Technology Services | 2.3% |
Consumer Services | 1.8% |
Distribution Services | 1.3% |
Communications | 0.4% |
TOTAL EQUITIES PORTFOLIO VALUE | 97.5% |
Cash Equivalents(3) | 2.5% |
TOTAL PORTFOLIO VALUE | 100.0% |
(1) Except for Cash Equivalents, sector classifications are based upon, and individual portfolio securities are assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns a classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.
(2) Percentages are based on total investments, which may differ from the Fund’s total net assets used in computing the percentages in the Portfolio of Investments which follows.
(3) Cash Equivalents includes any investments in money market mutual funds and/or overnight repurchase agreements.
MID CAP EQUITY FUND
Shares | Value | ||
| COMMON STOCKS--99.3% |
| |
| Commercial Services--7.3% |
| |
27,700 | Banta Corp. | $ 1,355,915 | |
48,100 | Brinks Co. (The) | 1,932,658 | |
73,100 | (1) Copart, Inc. | 1,804,839 | |
14,390 | (1) Dun & Bradstreet Corp. | 916,211 | |
42,100 | Ikon Office Solutions, Inc. | 424,789 | |
58,900 | (1) Interactive Data Corp. | 1,348,221 | |
46,200 | SEI Investments, Co. | 1,670,592 | |
| Total | 9,453,225 | |
| Communications--0.4% |
| |
6,180 | CenturyTel, Inc. | 221,862 | |
7,920 | Telephone and Data System, Inc. | 323,532 | |
| Total | 545,394 | |
| Consumer Durables--5.4% |
| |
112,133 | (1) Activision, Inc. | 2,506,173 | |
12,000 | Centex Corp. | 813,000 | |
22,333 | D. R. Horton, Inc. | 824,534 | |
12,380 | Lennar Corp., Class A | 768,798 | |
37,600 | Polaris Industries, Inc., Class A | 1,980,768 | |
| Total | 6,893,273 | |
| Consumer Non-Durables--5.0% |
| |
36,100 | American Greetings Corp., Class A | 916,579 | |
23,950 | Blyth Industries, Inc. | 595,157 | |
32,200 | (1) Coach, Inc. | 1,068,718 | |
32,200 | (1) Constellation Brands, Inc., Class A | 886,144 | |
30,900 | Hormel Foods Corp. | 985,401 | |
62,300 | PepsiAmericas, Inc. | 1,571,206 | |
19,860 | Tyson Foods, Inc., Class A | 353,111 | |
| Total | 6,376,316 | |
| Consumer Services--1.9% |
| |
4,100 | Choice Hotels International, Inc. | 251,699 | |
39,980 | Gtech Holdings Corp. | 1,142,628 | |
22,960 | (1) Pixar, Inc. | 1,007,944 | |
| Total | 2,402,271 | |
| Distribution Services--1.4% |
| |
17,260 | (1) Avnet, Inc. | 432,363 | |
6,480 | CDW Corp. | 382,838 | |
53,700 | (1) Ingram Micro, Inc., Class A | 940,287 | |
| Total | 1,755,488 | |
| Electronic Technology--8.2% |
| |
16,900 | (1) Altera Corp. | $ 369,603 | |
78,800 | (1) Cree, Inc. | 2,020,432 | |
20,000 | (1) F5 Networks, Inc. | 825,800 | |
27,060 | Harris Corp. | 1,044,787 | |
20,000 | Imation Corp. | 842,200 | |
33,660 | (1) Jabil Circuit, Inc. | 990,950 | |
33,180 | (1) MEMC Electronic Materials | 559,415 | |
20,280 | Microchip Technology, Inc. | 631,114 | |
22,900 | Plantronics, Inc. | 746,540 | |
7,600 | Precision Castparts Corp. | 734,768 | |
9,800 | (1) Sequa Corp., Class A | 671,300 | |
28,690 | (1) Storage Technology Corp. | 1,060,095 | |
| Total | 10,497,004 | |
| Energy Minerals--3.6% |
| |
41,000 | (1) Newfield Exploration Co. | 1,936,020 | |
25,000 | Valero Energy Corp. | 2,662,500 | |
| Total | 4,598,520 | |
| Finance--17.7% |
| |
15,400 | AmerUs Group Co. | 851,928 | |
58,400 | American Capital Strategies Ltd. | 2,203,432 | |
18,123 | Amsouth Bancorporation | 476,997 | |
48,300 | Astoria Financial Corp. | 1,349,019 | |
32,200 | Bank of Hawaii Corp. | 1,634,150 | |
20,000 | CBL & Associates Properties, Inc. | 848,400 | |
9,080 | City National Corp. | 654,123 | |
13,910 | Downey Financial Corp. | 881,616 | |
15,400 | Edwards(AG), Inc. | 696,234 | |
9,750 | Everest Re Group Ltd. | 902,753 | |
28,998 | Fidelity National Financial, Inc. | 1,134,402 | |
35,500 | First American Financial Corp. | 1,477,155 | |
151,500 | HRPT Properties Trust | 1,939,200 | |
43,000 | Hospitality Properties Trust | 1,864,480 | |
41,100 | IndyMac Bancorp, Inc. | 1,637,013 | |
23,700 | Ohio Casualty Corp. | 598,662 | |
23,380 | PMI Group, Inc. | 945,955 | |
18,930 | Radian Group, Inc. | 968,837 | |
5,100 | Reinsurance Group of America | 218,841 | |
24,000 | Ryder Systems, Inc. | 842,160 | |
19,500 | TCF Financial Corp. | 552,045 | |
| Total | 22,677,402 | |
| COMMON STOCKS--continued |
| |
| Health Services--5.7% |
| |
56,900 | (1) Humana, Inc. | $ 2,740,304 | |
21,600 | (1) PacifiCare Health Systems, Inc. | 1,628,208 | |
15,600 | (1) Triad Hospitals, Inc. | 750,984 | |
10,040 | Universal Health Services, Inc., Class B | 513,144 | |
24,000 | (1) WellChoice, Inc. | 1,706,400 | |
| Total | 7,339,040 | |
| Health Technology--6.5% |
| |
31,800 | Applera Corp. | 683,700 | |
8,200 | (1) Barr Laboratories, Inc. | 374,002 | |
16,100 | (1) Charles River Laboratories International, Inc. | 818,202 | |
9,860 | Hillenbrand Industries, Inc. | 490,732 | |
10,000 | (1) Intuitive Surgical, Inc. | 744,000 | |
19,200 | (1) Invitrogen Corp. | 1,626,816 | |
19,720 | Mylan Laboratories, Inc. | 362,651 | |
48,100 | Perrigo Co. | 689,273 | |
25,000 | (1) Respironics, Inc. | 979,000 | |
9,300 | (1) Techne Corp. | 529,821 | |
25,300 | (1) Varian Medical Systems, Inc. | 1,007,446 | |
| Total | 8,305,643 | |
| Industrial Services--3.2% |
| |
18,050 | BJ Services Co. | 1,138,594 | |
10,410 | Granite Construction, Inc. | 388,085 | |
24,230 | Helmerich & Payne, Inc. | 1,439,747 | |
18,231 | (1) National-Oilwell, Inc. | 1,170,613 | |
| Total | 4,137,039 | |
| Non-Energy Minerals--4.6% |
| |
23,100 | Florida Rock Industries, Inc. | 1,307,460 | |
27,600 | Lafarge North America, Inc. | 1,903,020 | |
58,000 | Louisiana-Pacific Corp. | 1,466,820 | |
22,800 | Nucor Corp. | 1,287,744 | |
| Total | 5,965,044 | |
| Process Industries--2.8% |
| |
15,600 | Cabot Corp. | 514,800 | |
42,000 | Lubrizol Corp. | 1,736,700 | |
20,500 | Monsanto Co. | 1,308,720 | |
| Total | 3,560,220 | |
| Producer Manufacturing--4.6% |
| |
31,960 | AMETEK, Inc. | $ 1,287,668 | |
21,400 | Cummins, Inc. | 1,850,458 | |
9,270 | (1) Energizer Holdings, Inc. | 601,623 | |
9,800 | HNI Corp. | 564,970 | |
9,860 | Johnson Controls, Inc. | 591,403 | |
33,000 | (1) TRW Automotive Holdings Corp. | 968,550 | |
| Total | 5,864,672 | |
| Retail Trade--7.3% |
| |
33,410 | Abercrombie & Fitch Co., Class A | 1,857,930 | |
65,000 | (1) Cabela’s, Inc., Class A | 1,324,700 | |
61,600 | Circuit City Stores, Inc. | 1,040,424 | |
72,100 | Claire’s Stores, Inc. | 1,692,908 | |
40,600 | (1) Mens Wearhouse, Inc. | 1,237,488 | |
32,200 | (1) Pacific Sunwear of California | 768,936 | |
42,390 | Ross Stores, Inc. | 1,054,663 | |
17,670 | Ruddick Corp. | 412,948 | |
| Total | 9,389,997 | |
| Technology Services--2.3% |
| |
10,040 | (1) Affiliated Computer Services, Inc., Class A | 521,578 | |
19,900 | (1) Autodesk, Inc. | 859,680 | |
20,000 | Fair Isaac & Co., Inc. | 817,400 | |
18,160 | Intuit, Inc. | 832,454 | |
| Total | 3,031,112 | |
| Transportation--3.6% |
| |
9,080 | CNF Transportation, Inc. | 458,268 | |
59,200 | OMI Corp. | 1,132,496 | |
15,400 | Overseas Shipholding Group, Inc. | 941,710 | |
47,300 | Tidewater, Inc. | 2,106,742 | |
| Total | 4,639,216 | |
| Utilities--7.8% |
| |
49,300 | Energen Corp. | 1,889,176 | |
14,600 | Equitable Resources, Inc. | 1,100,840 | |
56,900 | MDU Resources Group, Inc. | 1,831,042 | |
51,400 | National Fuel Gas Co. | 1,547,654 | |
19,575 | PNM Resources, Inc. | 579,029 | |
25,080 | Questar Corp. | 1,956,742 | |
40,000 | UGI Corp. | 1,106,000 | |
| Total | 10,010,483 | |
| TOTAL COMMON STOCKS (identified cost $96,888,549) | 127,441,359 | |
| MUTUAL FUND--2.5% |
| |
3,240,000 | Fidelity Institutional Cash Treasury Money Market Fund | $ 3,240,000 | |
| TOTAL INVESTMENTS--101.8% | 130,681,359 | |
| OTHER ASSETS AND LIABILITIES--NET--(1.8)% | (2,332,207) | |
| TOTAL NET ASSETS--100% | $ 128,349,152 | |
Portfolio of Investment Summary Tables
TOTAL RETURN BOND FUND
At August 31, 2005, the Fund’s portfolio composition(1) was as follows:
| Percentage |
Mortgage Backed Securities(3) | 28.9% |
Corporate Bonds | 28.4% |
Government Agencies | 25.1% |
U.S. Treasury and Agency Securities(4) | 13.7% |
Municipals | 3.6% |
Cash Equivalents(5) | 0.3% |
TOTAL | 100.0% |
At August 31, 2005, the Fund’s credit quality ratings composition(6) was as follows:
S&P Long-Term Ratings as | Moody’s Long-Term Ratings as | |||||||
AAA |
| 69.1 | % |
| AAA |
| 37.0 | % |
AA |
| 2.7 | % |
| Aaa |
| 33.0 | % |
A |
| 12.5 | % |
| Aa |
| 5.9 | % |
BBB |
| 10.5 | % |
| A |
| 11.3 | % |
BB+ |
| 2.7 | % |
| Baa |
| 11.2 | % |
Not Rated by S&P(7) |
| 2.2 | % |
| Not Rated by Moody’s(7) |
| 1.3 | % |
Cash Equivalents(5) |
| 0.3 | % |
| Cash Equivalents(5) |
| 0.3 | % |
TOTAL |
| 100.0 | % |
| TOTAL |
| 100.0 | % |
(1) See the Fund’s Prospectus and Statement of Additional Information for a description of these security types.
(2) Percentages are based on total investments, which may differ from the Fund’s total net assets used in computing the percentages in the Portfolio of Investments which follows.
(3) For purposes of this table, mortgage backed securities includes mortgage backed securities guaranteed by Government Sponsored Entities (GSEs) and adjustable rate mortgage backed securities.
(4) For purposes of this table, U.S. Treasury and Agency Securities does not include mortgage backed securities guaranteed by GSEs.
(5) Cash Equivalents includes any investments in money market mutual funds and/or overnight repurchase agreements.
(6) These tables depict the long-term credit quality ratings assigned to the Fund’s portfolio holdings by Standard & Poor’s (S&P) and Moody’s Investors Service (Moody’s), each of which is a Nationally Recognized Statistical Ratings Organization (NRSRO). These credit quality ratings are shown without regard to gradations within a given rating category. For example, securities rated “A-” have been included in the “A” rated category.
Rated securities include a security with an obligor and/or credit enhancer that has received a rating from an NRSRO with respect to a class of debt obligations that is comparable in priority and security with the security held by the Fund. Credit quality ratings are an assessment of the risk that a security will default in payment and do not address other risks presented by the security. Please see the descriptions of credit quality ratings in the Fund’s Statement of Additional Information.
(7) Holdings that are rated only by a different NRSRO than the one identified have been included in this category. Of the portfolio’s total investments, all securities have received a rating by an NRSRO.
TOTAL RETURN BOND FUND
Principal | Value | ||
| CORPORATE BONDS--29.8% |
| |
| Communications--4.1% |
| |
$ 2,000,000 | Verizon Communications, Sr. Note, 6.50%, 9/15/2011 | $ 2,180,300 | |
| Consumer Durables--6.9% |
| |
2,000,000 | DaimlerChrysler North America Holding Corp., 6.50%, 11/15/2013 | 2,154,700 | |
1,500,000 | Ford Motor Co., Note, 7.25%, 10/1/2008 | 1,492,500 | |
| Total | 3,647,200 | |
| Energy Minerals--2.1% |
| |
1,000,000 | ConocoPhillips, Company Guarantee, 5.90%, 10/15/2032 | 1,133,400 | |
| Finance--14.7% |
| |
2,000,000 | Boston Properties LP, Sr. Note, 6.25%, 1/15/2013 | 2,169,880 | |
1,000,000 | Goldman Sachs Group, Inc., 6.125%, 2/15/2033 | 1,093,320 | |
1,500,000 | International Lease Finance Corp., Sr. Note, 5.00%, 4/15/2010 | 1,524,255 | |
1,500,000 | MBNA America Bank, N.A., Bank Note, 5.375%, 1/15/2008 | 1,537,485 | |
1,500,000 | Washington Mutual Bank FA, 5.125%, 1/15/2015 | 1,531,665 | |
| Total | 7,856,605 | |
| Health Technology--2.0% |
| |
1,000,000 | Wyeth, Unsecd. Note, 5.50%, 2/1/2014 | 1,051,980 | |
| TOTAL CORPORATE BONDS (identified cost $15,496,805) | 15,869,485 | |
| GOVERNMENT AGENCIES--26.4% |
| |
| Federal Home Loan Bank System--4.3% |
| |
550,000 | 7.01%, 6/14/2006 | 562,683 | |
750,000 | Bond, 3.57%, 2/15/2007 | 743,977 | |
1,000,000 | Bond, Series 1, 3.60%, 2/22/2007 | 992,270 | |
| Total | 2,298,930 | |
| Federal Home Loan Mortgage Corporation--1.9% |
| |
1,000,000 | Unsecd. Note, Series MTN, 4.30%, 12/28/2009 | 991,410 | |
| Federal National Mortgage Association--20.2% |
| |
$ 800,000 | Bond, 6.625%, 11/15/2030 | $ 1,037,440 | |
3,100,000 | (5) Discount Note, 3.360%, 9/14/2005 | 3,096,239 | |
1,000,000 | Note, 4.00%, 8/8/2008 | 993,950 | |
2,000,000 | Note, 5.625%, 4/6/2015 | 2,009,180 | |
1,500,000 | Note, 6.00%, 12/15/2005 | 1,509,765 | |
1,000,000 | Unsecd. Note, 3.60%, 12/21/2007 | 987,860 | |
1,000,000 | Unsecd. Note, 7.125%, 6/15/2010 | 1,128,020 | |
| Total | 10,762,454 | |
| TOTAL GOVERNMENT AGENCIES (identified cost $13,771,508) | 14,052,794 | |
| MORTGAGE BACKED SECURITIES--30.3% |
| |
| (6) Federal Home Loan Mortgage Corporation 15 Year--4.1% |
| |
717,556 | Pool E98632, 5.00%, 8/1/2018 | 723,519 | |
1,478,530 | Pool G11536, 4.50%, 4/1/2014 | 1,476,489 | |
| Total | 2,200,008 | |
| (6) Federal Home Loan Mortgage Corporation 30 Year--2.8% |
| |
1,478,629 | Pool G08003, 6.00%, 7/1/2034 | 1,513,095 | |
| (6) Federal National Mortgage Association 20 Year--1.7% |
| |
855,891 | Pool 254739, 6.00%, 4/1/2023 | 880,660 | |
| (6) Federal National Mortgage Association 30 Year--16.0% |
| |
2,284 | Pool 76204, 11.00%, 6/1/2019 | 2,486 | |
2,500,000 | Pool 817423, 5.50%, 8/1/2035 | 2,525,775 | |
1,000,000 | Pool 830762, 5.00%, 8/1/2035 | 993,120 | |
1,000,000 | Pool 830766, 5.00%, 8/1/2035 | 993,120 | |
1,000,000 | Pool 832443, 5.00%, 9/1/2035 | 993,120 | |
3,013 | Pool 85131, 11.00%, 5/1/2017 | 3,310 | |
1,500,000 | Pool TBA, 5.00%, 9/1/2034 | 1,488,750 | |
1,500,000 | Pool TBA, 5.50%, 9/1/2035 | 1,514,535 | |
| Total | 8,514,216 | |
| (6) Government National Mortgage Association 15 Year--0.2% |
| |
90,734 | Pool 420153, 7.00%, 9/15/2010 | 94,628 | |
| MORTGAGE BACKED SECURITIES--continued |
| |
| (6) Government National Mortgage Association 30 Year--5.5% |
| |
$ 15,260 | Pool 147875, 10.00%, 3/15/2016 | $ 16,793 | |
27,134 | Pool 168511, 8.00%, 7/15/2016 | 28,951 | |
2,364 | Pool 174673, 8.00%, 8/15/2016 | 2,516 | |
8,998 | Pool 177145, 8.00%, 1/15/2017 | 9,629 | |
320 | Pool 188080, 8.00%, 9/15/2018 | 343 | |
6,469 | Pool 212660, 8.00%, 4/15/2017 | 6,884 | |
22,706 | Pool 216950, 8.00%, 6/15/2017 | 24,297 | |
3,986 | Pool 217533, 8.00%, 5/15/2017 | 4,215 | |
3,194 | Pool 227430, 9.00%, 8/15/2019 | 3,489 | |
2,504 | Pool 253449, 10.00%, 10/15/2018 | 2,768 | |
6,933 | Pool 279619, 10.00%, 9/15/2019 | 7,677 | |
5,945 | Pool 287853, 9.00%, 4/15/2020 | 6,506 | |
3,622 | Pool 288967, 9.00%, 4/15/2020 | 3,968 | |
1,891 | Pool 289082, 9.00%, 4/15/2020 | 2,018 | |
7,789 | Pool 291100, 9.00%, 5/15/2020 | 8,524 | |
22,426 | Pool 302101, 7.00%, 6/15/2024 | 23,665 | |
41,925 | Pool 345031, 7.00%, 10/15/2023 | 44,267 | |
43,069 | Pool 345090, 7.00%, 11/15/2023 | 45,436 | |
25,725 | Pool 360772, 7.00%, 2/15/2024 | 27,163 | |
12,376 | Pool 404653, 7.00%, 9/15/2025 | 13,048 | |
35,690 | Pool 408884, 7.00%, 9/15/2025 | 37,640 | |
26,122 | Pool 410108, 7.00%, 9/15/2025 | 27,541 | |
16,517 | Pool 410786, 7.00%, 9/15/2025 | 17,414 | |
94,463 | Pool 415427, 7.50%, 8/15/2025 | 100,745 | |
22,468 | Pool 415865, 7.00%, 9/15/2025 | 23,688 | |
92,644 | Pool 418781, 7.00%, 9/15/2025 | 97,705 | |
61,314 | Pool 420157, 7.00%, 10/15/2025 | 64,702 | |
280,945 | Pool 532641, 7.00%, 12/15/2030 | 295,414 | |
1,646,094 | Pool 615486, 5.50%, 7/15/2034 | 1,678,802 | |
304,757 | Pool 780717, 7.00%, 2/15/2028 | 321,689 | |
| Total | 2,947,497 | |
| TOTAL MORTGAGE BACKED SECURITIES (identified cost $16,072,639) | 16,150,104 | |
Principal | Value | ||
| MUNICIPAL BONDS--3.7% |
| |
$ 1,175,000 | Liberal, KS, GO UT (Series 2), 6.50% Bonds (FSA INS), 12/1/2010 | $ 1,253,079 | |
360,000 | Vail, CO Sales Tax Revenue, Refunding Revenue Bonds, 6.00% Bonds (MBIA Insurance Corp. INS), 12/1/2006 | 368,114 | |
350,000 | Vail, CO Sales Tax Revenue, Refunding Revenue Bonds, 6.05% Bonds (MBIA Insurance Corp. INS), 12/1/2007 | 364,049 | |
| TOTAL MUNICIPAL BONDS (identified cost $1,885,000) | 1,985,242 | |
| U.S. TREASURY--14.4% |
| |
| U.S. Treasury Bonds--9.5% |
| |
1,500,000 | 8.50%, 2/15/2020 | 2,185,080 | |
2,000,000 | 8.875%, 8/15/2017 | 2,881,560 | |
| Total | 5,066,640 | |
| U.S. Treasury Notes--4.9% |
| |
950,000 | 3.375%, 10/15/2009 | 933,223 | |
1,650,000 | 4.25%, 11/15/2013 | 1,679,386 | |
| Total | 2,612,609 | |
| TOTAL U.S. TREASURY (identified cost $7,545,773) | 7,679,249 | |
| MUTUAL FUND--0.3% |
| |
172,000 | Fidelity Institutional Cash Treasury Money Market Fund | 172,000 | |
| TOTAL INVESTMENTS--104.9% | 55,908,874 | |
| OTHER ASSETS AND LIABILITIES--NET--(4.9)% | (2,589,724) | |
| TOTAL NET ASSETS--100% | $ 53,319,150 | |
U.S. GOVERNMENT INCOME FUND
At August 31, 2005, the Fund’s portfolio composition(1) was as follows:
Percentage | |
U.S. Government Agency Mortgage Backed Securities | 86.5% |
U.S. Government Agency Securities | 9.0% |
Cash Equivalents(3) | 4.5% |
TOTAL | 100.0% |
(1) See the Fund’s Prospectus for a description of the principal types of securities in which the Fund invests.
(2) Percentages are based on total investments, which may differ from the Fund’s total net assets used in computing the percentages in the Portfolio of Investments which follows.
(3) Cash Equivalents includes any investments in money market mutual funds and/or overnight repurchase agreements.
U.S. GOVERNMENT INCOME FUND
Principal | Value | ||
| LONG-TERM OBLIGATIONS--104.8% |
| |
| GOVERNMENT AGENCIES--9.9% |
| |
| Federal Home Loan Bank System--9.9% |
| |
$ 5,100,000 | 3.400%, 9/14/2005 | $ 5,093,738 | |
2,000,000 | 3.380%, 9/19/2005 | 1,996,620 | |
| TOTAL GOVERNMENT AGENCIES | 7,090,358 | |
| MORTGAGE BACKED SECURITIES--94.9% |
| |
| (6) Federal Home Loan Mortgage Corporation 15 Year--4.1% |
| |
2,957,059 | 4.500%, 4/1/2014 | 2,952,978 | |
| (6) Federal Home Loan Mortgage Corporation 30 Year--5.4% |
| |
2,875,732 | 5.500%, 1/1/2035 | 2,907,192 | |
67,998 | 6.000%, 11/1/2006 | 68,598 | |
739,314 | 6.000%, 7/1/2034 | 756,548 | |
91,321 | 8.750%, 2/1/2017 | 98,287 | |
3,985 | 9.000%, 6/1/2016 | 4,306 | |
113 | 9.000%, 9/1/2016 | 122 | |
589 | 9.000%, 10/1/2016 | 637 | |
5,701 | 9.000%, 1/1/2017 | 6,160 | |
31,082 | 10.000%, 5/1/2014 | 33,766 | |
14,532 | 10.000%, 6/1/2018 | 15,905 | |
| Total | 3,891,521 | |
| (6) Federal National Mortgage Association 15 Year--19.2% |
| |
2,000,000 | TBA , 4.000%, 15 Year, September | 1,948,120 | |
36,549 | 4.500%, 6/1/2020 | 36,255 | |
298,876 | 4.500%, 6/1/2020 | 296,467 | |
505,135 | 4.500%, 6/1/2020 | 501,063 | |
414,874 | 4.500%, 7/1/2020 | 411,530 | |
1,124,684 | 4.500%, 7/1/2020 | 1,115,619 | |
607,906 | 4.500%, 7/1/2020 | 603,006 | |
124,542 | 5.000%, 6/1/2018 | 125,577 | |
706,205 | 5.000%, 12/1/2018 | 711,635 | |
99,666 | 5.000%, 1/1/2019 | 100,432 | |
191,313 | 5.500%, 1/1/2019 | 195,593 | |
785,031 | 5.000%, 4/1/2019 | 791,068 | |
137,838 | 5.000%, 7/1/2019 | 138,898 | |
111,908 | 5.000%, 11/1/2019 | 112,769 | |
140,027 | 5.000%, 4/1/2020 | 141,059 | |
$ 80,782 | 5.000%, 5/1/2020 | $ 81,378 | |
734,877 | 5.000%, 5/1/2020 | 740,293 | |
1,972,624 | 5.000%, 6/1/2020 | 1,987,163 | |
212,764 | 5.500%, 10/1/2016 | 217,592 | |
190,089 | 5.500%, 2/1/2017 | 194,402 | |
2,092,585 | 5.500%, 10/1/2017 | 2,139,396 | |
238,187 | 5.500%, 10/1/2017 | 243,516 | |
140,372 | 5.500%, 12/1/2017 | 143,512 | |
158,327 | 5.500%, 3/1/2018 | 161,869 | |
281,253 | 5.500%, 5/1/2018 | 287,457 | |
281,915 | 5.500%, 9/1/2019 | 288,046 | |
45,750 | 7.000%, 8/1/2012 | 47,827 | |
| Total | 13,761,542 | |
| Federal National Mortgage Association 20 Year--1.2% |
| |
855,891 | (6) 6.000%, 4/1/2023 | 880,660 | |
| (6) Federal National Mortgage Association 30 Year--54.0% |
| |
1,500,000 | TBA , 4.500%, 30 Year, September | 1,454,070 | |
1,500,000 | TBA , 6.000%, 30 Year, September | 1,534,215 | |
2,000,000 | TBA , 6.500%, 30 Year, September | 2,065,620 | |
152,849 | 5.000%, 4/1/2009 | 154,721 | |
821,490 | 5.000%, 3/1/2034 | 816,101 | |
1,158,361 | 5.000%, 5/1/2035 | 1,150,391 | |
1,162,926 | 5.000%, 6/1/2035 | 1,154,925 | |
113,517 | 5.000%, 6/1/2035 | 112,736 | |
821,259 | 5.000%, 7/1/2035 | 815,609 | |
5,493,702 | 5.000%, 7/1/2035 | 5,455,906 | |
885,345 | 5.000%, 7/1/2035 | 879,254 | |
2,500,000 | 5.000%, 8/1/2035 | 2,482,800 | |
2,838,547 | 5.500%, 6/1/2033 | 2,868,692 | |
5,143,224 | 5.500%, 6/1/2033 | 5,197,845 | |
1,259,523 | 5.500%, 10/1/2034 | 1,272,508 | |
1,533,127 | 5.500%, 12/1/2034 | 1,548,934 | |
1,426,740 | 5.500%, 2/1/2035 | 1,441,449 | |
1,460,312 | 5.500%, 5/1/2035 | 1,475,368 | |
797,730 | 5.500%, 6/1/2035 | 805,955 | |
983,869 | 5.500%, 6/1/2035 | 994,013 | |
1,997,753 | 6.000%, 12/1/2033 | 2,044,321 | |
2,500,248 | 6.000%, 4/1/2035 | 2,558,529 | |
60,561 | 6.500%, 1/1/2008 | 61,952 | |
| LONG-TERM OBLIGATIONS--continued |
| |
| MORTGAGE BACKED SECURITIES--continued |
| |
| (6) Federal National Mortgage Association 30 Year--continued |
| |
$ 145,741 | 7.000%, 12/1/2031 | $ 152,683 | |
187,510 | 7.500%, 7/1/2031 | 198,808 | |
16,442 | 9.500%, 8/1/2020 | 18,078 | |
| Total | 38,715,483 | |
| (6) Government National Mortgage Association 15 Year--1.8% |
| |
488,380 | 6.000%, 3/20/2017 | 506,342 | |
76,013 | 6.500%, 2/15/2017 | 79,165 | |
606,905 | 7.000%, 12/15/2008 | 628,553 | |
5,684 | 7.000%, 11/15/2009 | 5,928 | |
39,128 | 7.000%, 9/15/2010 | 40,807 | |
| Total | 1,260,795 | |
| (6) Government National Mortgage Association 30 Year--9.2% |
| |
935,952 | 5.000%, 7/15/2035 | 940,922 | |
179,151 | 5.000%, 7/15/2035 | 179,767 | |
383,083 | 5.000%, 7/15/2035 | 384,401 | |
1,646,094 | 5.500%, 7/15/2034 | 1,678,802 | |
500,000 | 6.000%, 5/15/2033 | 515,810 | |
46,358 | 6.000%, 8/15/2034 | 47,780 | |
800,302 | 6.000%, 8/15/2034 | 824,863 | |
153,440 | 6.000%, 2/15/2035 | 158,149 | |
113,936 | 6.500%, 4/15/2029 | 119,141 | |
263,338 | 7.000%, 9/15/2023 | 277,888 | |
230,780 | 7.000%, 6/20/2030 | 242,017 | |
104,213 | 7.000%, 2/15/2032 | 109,548 | |
139,595 | 7.000%, 3/15/2032 | 146,741 | |
52,903 | 7.500%, 10/15/2022 | 56,520 | |
66,558 | 7.500%, 3/15/2026 | 70,984 | |
94,990 | 7.500%, 9/15/2026 | 101,307 | |
54,581 | 7.500%, 11/20/2029 | 57,955 | |
69,926 | 7.500%, 12/20/2029 | 74,248 | |
50,526 | 7.500%, 12/20/2030 | 53,649 | |
76,521 | 8.000%, 1/15/2022 | 82,459 | |
75,672 | 8.000%, 4/15/2022 | 81,449 | |
63,457 | 8.000%, 8/15/2022 | 68,302 | |
19,697 | 8.000%, 11/15/2022 | 21,170 |
Principal | Value | ||
$ 59,104 | 8.000%, 10/15/2029 | $ 63,357 | |
37,117 | 8.000%, 1/20/2030 | 39,650 | |
40,922 | 8.000%, 2/20/2030 | 43,713 | |
52,627 | 8.000%, 3/20/2030 | 56,218 | |
14,552 | 8.500%, 2/20/2025 | 15,663 | |
23,555 | 9.000%, 2/15/2020 | 25,733 | |
19,198 | 9.500%, 6/15/2020 | 21,193 | |
| Total | 6,559,399 | |
| TOTAL MORTGAGE BACKED SECURITIES | 68,022,378 | |
| TOTAL LONG-TERM OBLIGATIONS (identified cost $75,265,686) | 75,112,736 | |
| MUTUAL FUND--4.9% |
| |
3,525,000 | Fidelity Institutional Cash Treasury Money Market Fund (at net asset value) | 3,525,000 | |
| TOTAL INVESTMENTS--109.7% | 78,637,736 | |
| OTHER ASSETS AND LIABILITIES--NET--(9.7)% | (6,942,697) | |
| TOTAL NET ASSETS--100% | $ 71,695,039 | |
CASH RESERVE FUND
At August 31, 2005, the Fund’s portfolio composition(1) was as follows:
| Percentage |
Commercial Paper | 44.1% |
U.S. Government Agency Securities | 37.8% |
Repurchase Agreement | 16.2% |
Other Securities(3) | 1.9% |
TOTAL | 100.0% |
(1) See the Fund’s Prospectus for a description of the principal types of securities in which the Fund invests.
(2) Percentages are based on total investments, which may differ from the Fund’s total net assets used in computing the percentages in the Portfolio of Investments which follows.
(3) Other Securities includes any investments in money market mutual funds.
CASH RESERVE FUND
Principal | Value | ||
| (7) COMMERCIAL PAPER--44.1% |
| |
| Agricultural Operations--3.7% |
| |
$ 5,000,000 | Cargill, Inc., 3.480%, 9/16/2005 | $ 4,992,750 | |
| Consumer Durables--3.7% |
| |
5,000,000 | Toyota Motor Credit Corp., 3.470%, 9/8/2005 | 4,996,626 | |
| Finance--27.8% |
| |
5,000,000 | American General Investment Corp., (American General Corp. GTD), 3.390%, 9/9/2005 | 4,996,233 | |
1,500,000 | (8)(9) Beta Finance, Inc., 3.500%, 9/12/2005 | 1,498,396 | |
5,000,000 | CRC Funding LLC, 3.510%, 9/27/2005 | 4,987,325 | |
2,500,000 | General Electric Capital Corp., 3.480% - 3.490%, 9/7/2005 - 9/19/2005 | 2,497,385 | |
5,000,000 | GOVCO, Inc., 3.390%, 9/13/2005 | 4,994,350 | |
5,000,000 | HSBC Finance Corp., 3.360% - 3.500%, 9/6/2005 - 9/14/2005 | 4,996,072 | |
4,000,000 | Jupiter Securitization Corp., 3.560%, 9/27/2005 | 3,989,716 | |
5,500,000 | Prudential Funding Corp., 3.550%, 9/30/2005 | 5,484,272 | |
4,000,000 | USAA Capital Corp., 3.500%, 9/2/2005 | 3,999,611 | |
| Total | 37,443,360 | |
| Process Industries--4.4% |
| |
6,000,000 | Du Pont (E.I.) de Nemours & Co., 3.470%, 9/16/2005 | 5,991,325 | |
| Retail Trade--4.5% |
| |
6,000,000 | Seven Eleven, Inc., 3.500%, 9/1/2005 | 6,000,000 | |
| TOTAL COMMERCIAL PAPER | 59,424,061 | |
| (5) GOVERNMENT AGENCIES--37.8% |
| |
| Finance--37.8% |
| |
10,000,000 | Federal Home Loan Bank System, 3.400%, 9/7/2005 | 9,994,333 | |
4,000,000 | Federal Home Loan Bank System, 3.405%, 9/16/2005 | 3,994,325 | |
6,000,000 | Federal Home Loan Bank System, 3.410%, 9/30/2005 | 5,983,518 |
Principal | Value | ||
$ 2,500,000 | Federal Home Loan Bank System, 3.480%, 10/7/2005 | $ 2,491,300 | |
5,000,000 | Federal Home Loan Mortgage Corp., 3.430%, 9/20/2005 | 4,990,949 | |
5,000,000 | Federal National Mortgage Association, 3.110%, 9/21/2005 | 4,991,361 | |
5,000,000 | Federal National Mortgage Association, 3.430%, 9/14/2005 | 4,993,807 | |
3,500,000 | Federal National Mortgage Association, 3.490%, 10/5/2005 | 3,488,464 | |
10,000,000 | Federal National Mortgage Association, 4.000%, 8/8/2006 | 10,000,000 | |
| TOTAL GOVERNMENT AGENCIES | 50,928,057 | |
| MUTUAL FUND--1.9% |
| |
2,502,000 | Fidelity Institutional Cash Treasury Money Market Fund | 2,502,000 | |
| REPURCHASE AGREEMENT--16.2% |
| |
$ 21,882,000 | Interest in $21,882,000 repurchase agreement 3.48%, dated 8/31/2005 under which Morgan Stanley & Co., Inc. will repurchase a U.S. Treasury security with a maturity of 8/15/2026 for $21,884,115 on 9/1/2005. The market value of the underlying security at the end of the period was $22,324,177. | 21,882,000 | |
| TOTAL INVESTMENTS--100.0% | 134,736,118 | |
| OTHER ASSETS AND LIABILITIES--NET--0.0% | 7,001 | |
| TOTAL NET ASSETS--100% | $ 134,743,119 | |
U.S. TREASURY MONEY MARKET FUND
At August 31, 2005, the Fund’s portfolio composition(1) was as follows:
| Percentage |
U.S. Treasury Securities | 77.7% |
Repurchase Agreements | 18.8% |
Other Securities(3) | 3.5% |
TOTAL | 100.0% |
(1) See the Fund’s Prospectus for a description of the principal types of securities in which the Fund invests.
(2) Percentages are based on total investments, which may differ from the Fund’s total net assets used in computing the percentages in the Portfolio of Investments which follows.
(3) Other Securities includes any investments in money market mutual funds.
U.S. TREASURY MONEY MARKET FUND
Principal | Value | ||
| (5)U.S. TREASURY--77.9% |
| |
| U.S. Treasury Bills--77.9% |
| |
$ 12,000,000 | 2.843% - 2.890%, 9/1/2005 | $ 12,000,000 | |
5,000,000 | 2.895%, 9/8/2005 | 4,997,185 | |
12,000,000 | 2.961% - 3.060%, 10/6/2005 | 11,964,396 | |
9,500,000 | 3.010% - 3.308%, 9/22/2005 | 9,482,536 | |
18,500,000 | 3.090% - 3.235%, 9/15/2005 | 18,477,040 | |
31,000,000 | 3.155%, 10/13/2005 | 30,885,894 | |
9,500,000 | 3.265% - 3.355%, 9/29/2005 | 9,475,560 | |
10,000,000 | 3.270%, 10/27/2005 | 9,949,133 | |
8,000,000 | 3.334%, 10/20/2005 | 7,963,697 | |
14,500,000 | 3.363% - 3.420%, 11/10/2005 | 14,404,462 | |
15,000,000 | 3.365% - 3.400%, 11/3/2005 | 14,911,437 | |
9,500,000 | 3.395%, 11/17/2005 | 9,431,016 | |
5,000,000 | 3.530%, 1/5/2006 | 4,938,225 | |
| TOTAL U.S. TREASURY | 158,880,581 | |
| MUTUAL FUND--3.5% |
| |
7,166,000 | Fidelity Institutional Cash Treasury Money Market Fund | 7,166,000 | |
Principal | Value | ||
| REPURCHASE AGREEMENTS--18.8% |
| |
$ 21,839,000 | Interest in $21,839,000 repurchase agreement 3.48%, dated 8/31/2005 under which Morgan Stanley & Co., Inc. will repurchase a U.S. Treasury security with a maturity of 8/15/2021 for $21,841,111 on 9/1/2005. The market value of the underlying security at the end of the period was $22,277,041. | $ 21,839,000 | |
16,500,000 | Interest in $16,500,000 repurchase agreement 3.45%, dated 8/31/2005 under which Merrill Lynch Securities will repurchase a U.S. Treasury security with a maturity of 2/15/2007 for $16,501,581 on 9/1/2005. The market value of the underlying security at the end of the period was $16,829,967. | 16,500,000 | |
| TOTAL REPURCHASE AGREEMENTS | 38,339,000 | |
| TOTAL INVESTMENTS--100.2% | 204,385,581 | |
| OTHER ASSETS AND LIABILITIES--NET--(0.2)% | (359,043) | |
| TOTAL NET ASSETS--100% | $ 204,026,538 | |
Notes to Portfolios of Investments
Hibernia Funds
August 31, 2005
(1) | Non-income producing. |
(2) | Current credit ratings are unaudited. |
(3) | Securities that are subject to the federal alternative minimum tax (AMT) represent 5.2% of the Hibernia Louisiana Municipal Income Fund’s portfolio calculated based upon total portfolio market value (percentage is unaudited). |
(4) | Represents an investment involving a related party to the Fund. Certain of the Officers of the Hibernia Funds are also Officers of this security. |
(5) | These issues show the rate of discount at time of purchase. |
(6) | Because of monthly principal payments, the average lives of certain government securities are less than the indicated periods. |
(7) | Rate shown represents yield to maturity. |
(8) | Denotes a restricted security, including securities purchased under Rule 144A of the Securities Act of 1933. These securities unless registered under the Act or exempted from registration, may only be sold to qualified institutional investors. At August 31, 2005, this security amounted to $1,489,396 which represents 1.1% of total net assets. |
(9) | Denotes a restricted security including securities purchased under Rule 144A that have been deemed liquid by criteria approved by the Fund’s Board of Trustees. At August 31, 2005, this security amounted to $1,489,396 which represents 1.1% of total net assets. |
The following abbreviations are used in these portfolios:
AMBAC | --American Municipal Bond Assurance Corporation |
COL | --Collateralized |
FGIC | --Financial Guaranty Insurance Company |
FHA | --Federal Housing Administration |
FHLMC | --Federal Home Loan Mortgage Corporation |
FNMA | --Federal National Mortgage Association |
FSA | --Financial Security Assurance |
GNMA | --Government National Mortgage Association |
GO | --General Obligation |
GTD | --Guaranteed |
HFA | --Housing Finance Authority |
IDA | --Industrial Development Authority |
IDB | --Industrial Development Bond |
INS | --Insured |
LT | --Limited Tax |
MTN | --Medium Term Note |
PFA | --Public Facility Authority |
SFM | --Single Family Mortgage |
TBA | --To be Announced |
UT | --Unlimited Tax |
VRDNs | --Variable Rate Demand Notes |
Percentages listed on Hibernia Capital Appreciation Fund and Hibernia Mid Cap Equity Fund’s Portfolio of Investments beneath the heading “Common Stocks,” represent the percentage of the respective portfolio invested in the identified economic sectors.
For Federal Tax Purposes | ||
Hibernia Funds | Cost of Investments | Total Net Assets* |
Capital Appreciation Fund | $ 168,943,194 | $ 249,374,069 |
Louisiana Municipal Income Fund | 76,953,056 | 78,639,910 |
Mid Cap Equity Fund | 100,182,898 | 128,349,152 |
Total Return Bond Fund | 54,976,660 | 53,319,150 |
U.S. Government Income Fund | 78,790,686 | 71,695,039 |
Cash Reserve Fund | 134,736,118 | 134,743,119 |
U.S. Treasury Money Market Fund | 204,385,581 | 204,026,538 |
* The categories of investments are shown as a percentage of total net assets at August 31, 2005.
(See Notes which are an integral part of the Financial Statements)
Statements of Assets and Liabilities
Hibernia Funds
August 31, 2005
| Capital | Louisiana Municipal | Mid Cap | |||
Assets: |
|
|
| |||
Investments in repurchase agreements | $-- | $-- | $-- | |||
Investments in securities | 248,904,744 | 79,717,630(1) | 130,681,359 | |||
Total investments in securities, at value | 248,904,744 | 79,717,630 | 130,681,359 | |||
Cash | 816 | -- | 528 | |||
Income receivable | 609,065 | 888,010 | 167,638 | |||
Receivable for shares sold | 2,488 | -- | 427 | |||
Total assets | 249,517,113 | 80,605,640 | 130,849,952 | |||
Liabilities: |
|
|
| |||
Payable for investments purchased | -- | 1,729,191 | -- | |||
Payable for shares redeemed | 55,770 | 15,150 | 2,435,658 | |||
Income distribution payable | -- | 171,273 | -- | |||
Payable for transfer and dividend disbursing agent fees | 21,618 | 14,840 | 20,858 | |||
Payable for Directors’/Trustees’ fees | -- | -- | -- | |||
Payable for portfolio accounting fees (Note 5) | 5,459 | 10,193 | 10,717 | |||
Payable for distribution services fee (Note 5) | 57,537 | 11,710 | 29,164 | |||
Payable for shareholder services fee (Note 5) | 1,980 | 709 | 1,061 | |||
Accrued expenses | 680 | 12,664 | 3,342 | |||
Total liabilities | 143,044 | 1,965,730 | 2,500,800 | |||
Net Assets Consist of: |
|
|
| |||
Paid in capital | 152,165,516 | 73,648,361 | 92,939,969 | |||
Net unrealized appreciation (depreciation) of investments | 79,961,550 | 2,753,848 | 30,552,810 | |||
Accumulated net realized gain (loss) on investments | 17,182,513 | 2,184,947 | 4,676,930 | |||
Undistributed net investment income | 64,490 | 52,754 | 179,443 | |||
Total Net Assets | $249,374,069 | $78,639,910 | $128,349,152 | |||
Net Assets: | $240,297,329(2) | $75,298,075(2) | $123,324,327(2) | |||
| $9,076,740(3) | $3,341,835(3) | $5,024,825(3) | |||
Shares Outstanding, No Par Value, | 12,376,679(2) | 6,686,387(2) | 6,966,973(2) | |||
| 492,770(3) | 296,532(3) | 299,937(3) | |||
Total Shares Outstanding | 12,869,449 | 6,982,919 | 7,266,910 | |||
Net Asset Value Per Share | $19.42(2) | $11.26(2) | $17.70(2) | |||
$18.42(3) | $11.27(3) | $16.75(3) | ||||
Offering Price Per Share* | $20.34(2)*** | $11.61(2)**** | $18.53(2)*** | |||
$ 18.42(3) | $ 11.27(3) | $16.75(3) | ||||
Redemption Proceeds Per Share** | $19.42(2) | $11.26(2) | $17.70(2) | |||
| $17.41(3)***** | $10.65(3)***** | $15.83(3)***** | |||
Investments, at identified cost | $168,943,194 | $76,963,782 | $100,128,549 | |||
(1) Including $5,162,094 of investments in a related party.
(2) Represents Class A Shares.
(3) Represents Class B Shares.
* See “What Do Shares Cost” in the Prospectus.
** See “How to Redeem and Exchange Shares” in the Prospectus.
*** Computation of Offering Price: 100/95.50 of net asset value.
**** Computation of Offering Price: 100/97 of net asset value.
***** Computation of Redemption Proceeds: 94.50/100 of net asset value.
(See Notes which are an integral part of the Financial Statements)
Total Return | U.S. Government | Cash | U.S. Treasury | |||
|
|
|
| |||
$ -- | $ -- | $ 21,882,000 | $ 38,339,000 | |||
55,908,874 | 78,637,736 | 112,854,118 | 166,046,581 | |||
55,908,874 | 78,637,736 | 134,736,118 | 204,385,581 | |||
458 | 732 | 143 | 773 | |||
507,817 | 294,627 | 60,423 | 18,695 | |||
305 | 69 | 176,436 | 4,781 | |||
56,417,454 | 78,933,164 | 134,973,120 | 204,409,830 | |||
|
|
|
| |||
2,986,117 | 7,027,163 | -- | -- | |||
7,000 | 15,000 | -- | -- | |||
51,080 | 165,985 | 181,173 | 335,271 | |||
9,184 | 7,608 | 18,740 | 22,189 | |||
-- | 175 | 531 | 1,118 | |||
7,612 | 5,057 | 9,254 | 10,808 | |||
11,600 | 9,030 | 11,062 | -- | |||
-- | -- | 82 | -- | |||
25,711 | 8,107 | 9,159 | 13,906 | |||
3,098,304 | 7,238,125 | 230,001 | 383,292 | |||
|
|
|
| |||
54,315,123 | 72,022,310 | 134,792,133 | 204,025,186 | |||
965,149 | (152,950) | -- | -- | |||
(2,010,691) | (270,508) | (49,243) | (393) | |||
49,569 | 96,187 | 229 | 1,745 | |||
$53,319,150 | $71,695,039 | $134,743,119 | $204,026,538 | |||
$53,319,150 | $71,695,039 | $134,355,935(2) | $204,026,538 | |||
-- | -- | $387,184(3) | -- | |||
5,454,615 | 7,117,930 | 134,403,775(2) | 204,025,195 | |||
-- | -- | 388,358(3) | -- | |||
5,454,615 | 7,117,930 | 134,792,133 | 204,025,195 | |||
$9.78 | $10.07 | $1.00(2) | $1.00 | |||
$-- | $-- | $1.00(3) | $-- | |||
$ 10.08**** | $ 10.38**** | $ 1.00(2) | $ 1.00 | |||
$ -- | $ -- | $ 1.00(3) | $ -- | |||
$ 9.78 | $ 10.07 | $ 1.00(2) | $ 1.00 | |||
$ -- | $ -- | $ 0.95(3)***** | $ -- | |||
$54,943,725 | $78,790,686 | $134,736,118 | $204,385,581 | |||
Statements of Operations
Hibernia Funds
August 31, 2005
| Capital | Louisiana Municipal | Mid Cap | |||
Investment Income: |
|
|
| |||
Dividends | $4,959,293 | $39,658(1) | $1,612,904 | |||
Interest | 36,359 | 3,801,146 | 52,838 | |||
Total income | 4,995,652 | 3,840,804 | 1,665,742 | |||
Expenses: |
|
|
| |||
Investment adviser fee (Note 5) | 1,907,666 | 364,493 | 798,134 | |||
Administrative personnel and services fee (Note 5) | 300,250 | 95,629 | 125,533 | |||
Custodian fees (Note 5) | 55,871 | 20,250 | 26,123 | |||
Transfer and dividend disbursing agent fees and expenses | 92,388 | 55,893 | 74,972 | |||
Directors’/Trustees’ fees | 23,836 | 7,147 | 7,799 | |||
Auditing fees | 25,433 | 16,626 | 16,995 | |||
Legal fees | 4,860 | 4,862 | 7,073 | |||
Portfolio accounting fees (Note 5) | 86,782 | 70,606 | 63,878 | |||
Distribution services fee (Note 5) | 690,507(2) | 220,009(3) | 289,796(4) | |||
Shareholder services fee (Note 5) | 27,309(6) | 8,757(6) | 11,876(6) | |||
Share registration costs | 25,890 | 26,930 | 29,614 | |||
Printing and postage | 13,897 | 8,977 | 9,827 | |||
Insurance premiums | 16,685 | 9,361 | 9,407 | |||
Miscellaneous | 24,613 | 11,915 | 15,272 | |||
Total expenses | 3,295,987 | 921,455 | 1,486,299 | |||
Waivers (Note 5): |
|
|
| |||
Waiver of investment adviser fee | -- | (197,921) | -- | |||
Waiver of distribution services fee | -- | (77,496)(7) | -- | |||
Total waivers | -- | (275,417) | -- | |||
Net expenses | 3,295,987 | 646,038 | 1,486,299 | |||
Net investment income | 1,699,665 | 3,194,766 | 179,443 | |||
Realized and Unrealized Gain (Loss) on Investments: |
|
|
| |||
Net realized gain (loss) on investments | 24,795,577 | 2,316,326 | 4,796,529 | |||
Net change in unrealized appreciation (depreciation) of investments | 5,777,075 | (2,752,612) | 20,942,844 | |||
Net realized and unrealized gain (loss) on investments | 30,572,652 | (436,286) | 25,739,373 | |||
Change in net assets resulting from operations | $32,272,317 | $2,758,480 | $25,918,816 | |||
(1) Received from a related party.
(2) Represents distribution services fee of $608,580 and $81,927, for Class A Shares and Class B Shares, respectively.
(3) Represents distribution services fee of $193,740 and $26,269, for Class A Shares and Class B Shares, respectively.
(4) Represents distribution services fee of $254,169 and $35,627, for Class A Shares and Class B Shares, respectively.
(5) Represents distribution services fee of $348,214 and $2,861 for Class A Shares and Class B Shares, respectively.
(6) Represents shareholder services fee for Class B Shares.
(7) Represents distribution services fee waiver for Class A Shares.
(8) Represents distribution services fee waiver of $208,928 and $2,861 for Class A Shares and Class B Shares, respectively.
(See Notes which are an integral part of the Financial Statements)
Total Return | U.S. Government | Cash | U.S. Treasury | |||
|
|
|
| |||
-- | $-- | $-- | $-- | |||
2,630,753 | 3,357,491 | 3,424,284 | 3,936,514 | |||
2,630,753 | 3,357,491 | 3,424,284 | 3,936,514 | |||
|
|
|
| |||
375,975 | 337,875 | 558,668 | 646,946 | |||
63,405 | 88,651 | 164,897 | 190,616 | |||
15,001 | 18,771 | 32,933 | 37,347 | |||
34,496 | 34,022 | 97,429 | 81,415 | |||
4,724 | 7,166 | 12,745 | 13,230 | |||
15,168 | 16,235 | 19,895 | 22,577 | |||
6,628 | 4,670 | 4,537 | 8,261 | |||
52,316 | 56,269 | 56,134 | 49,126 | |||
134,277 | 187,709 | 351,075(5) | -- | |||
-- | -- | 954(6) | -- | |||
20,760 | 17,609 | 27,402 | 24,476 | |||
7,742 | 7,847 | 11,337 | 17,914 | |||
7,914 | 9,166 | 11,964 | 14,023 | |||
7,479 | 10,613 | 17,104 | 24,235 | |||
745,885 | 796,603 | 1,367,074 | 1,130,166 | |||
|
|
|
| |||
(219,381) | (169,464) | (383,086) | -- | |||
-- | (75,083) | (211,789)(8) | -- | |||
(219,381) | (244,547) | (594,875) | -- | |||
526,504 | 552,056 | 772,199 | 1,130,166 | |||
2,104,249 | 2,805,435 | 2,652,085 | 2,806,348 | |||
|
|
|
| |||
995,265 | 2,586,778 | (614) | -- | |||
(1,324,572) | (3,795,326) | -- | -- | |||
(329,307) | (1,208,548) | (61 ) | -- | |||
$1,774,942 | $1,596,887 | $2,651,471 | $2,806,348 | |||
Statements of Changes in Net Assets
Hibernia Funds
August 31, 2005
Capital |
| Income Fund | |||||
Year Ended | Year Ended | Year Ended | Year Ended | ||||
Increase (Decrease) in Net Assets: |
|
|
|
| |||
Operations: |
|
|
|
| |||
Net investment income (loss) | $1,699,665 | $972,515 | $3,194,766 | $3,559,366 | |||
Net realized gain (loss) on investments | 24,795,577 | 8,945,443 | 2,316,326 | 157,576 | |||
Net change in unrealized appreciation (depreciation) of investments | 5,777,075 | 14,180,860 | (2,752,612) | 1,128,372 | |||
Change in net assets resulting from operations | 32,272,317 | 24,098,818 | 2,758,480 | 4,845,314 | |||
Distributions to Shareholders: |
|
|
|
| |||
Distributions from net investment income | (1,968,218)(1) | (1,004,129)(3) | (3,221,806)(5) | (3,510,149)(7) | |||
Distributions from net realized gain on investments | (15,427,956)(2) | (15,667,151)(4) | (242,663)(6) | (211,682)(8) | |||
Change in net assets from distributions to shareholders | (17,396,174) | (16,671,280) | (3,464,469) | (3,721,831) | |||
Share Transactions: |
|
|
|
| |||
Proceeds from sale of shares | 28,035,553 | 23,450,979 | 6,523,336 | 5,743,016 | |||
Net asset value of shares issued to shareholders in payment of distributions declared | 12,553,314 | 13,081,716 | 1,221,597 | 1,452,869 | |||
Cost of shares redeemed | (57,942,992) | (38,878,745) | (10,256,224) | (12,057,422) | |||
Change in net assets from share transactions | (17,354,125) | (2,346,050) | (2,511,291) | (4,861,537) | |||
Change in net assets | (2,477,982) | 5,081,488 | (3,217,280) | (3,738,054) | |||
Net Assets: |
|
|
|
| |||
Beginning of period | 251,852,051 | 246,770,563 | 81,857,190 | 85,595,244 | |||
End of period | $249,374,069 | $251,852,051 | $78,639,910 | $81,857,190 | |||
Undistributed net investment income included in net assets at end of period | $64,490 | $333,043 | $52,754 | $24,112 | |||
(1) Represents income distributions of $1,968,218 for Class A Shares.
(2) Represents gain distributions of $14,699,925 and $728,031 for Class A Shares and Class B Shares, respectively.
(3) Represents income distributions for Class A Shares.
(4) Represents gain distributions of $14,881,321 and $785,830 for Class A Shares and Class B Shares, respectively.
(5) Represents income distributions of $3,111,074 and $110,732 for Class A Shares and Class B Shares, respectively.
(6) Represents gain distributions of $232,355 and $10,308 for Class A Shares and Class B Shares, respectively.
(7) Represents income distributions of $3,374,188 and $135,961 for Class A Shares and Class B Shares, respectively.
(8) Represents gain distributions of $201,401 and $10,281 for Class A Shares and Class B Shares, respectively.
(9) Represents gain distributions of $4,092,304 and $220,414 for Class A Shares and Class B Shares, respectively.
(10) Represents gain distributions of $314,775 and $21,087 for Class A Shares and Class B Shares, respectively.
(See Notes which are an integral part of the Financial Statements)
Mid Cap | Total Return | U.S. Government | ||||||||
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||
|
|
|
|
|
| |||||
|
|
|
|
|
| |||||
$179,443 | $(130,128) | $2,104,249 | $2,112,651 | $2,805,435 | $3,242,051 | |||||
4,796,529 | 5,009,487 | 995,265 | 199,634 | 2,586,778 | (90,843) | |||||
20,942,844 | 2,075,941 | (1,324,572) | (439,021) | (3,795,326) | 334,289 | |||||
25,918,816 | 6,955,300 | 1,774,942 | 1,873,264 | 1,596,887 | 3,485,497 | |||||
|
|
|
|
|
| |||||
-- | -- | (2,380,765) | (2,352,147) | (3,279,672) | (3,483,285) | |||||
(4,312,718)(9) | (335,862)(10) | -- | -- | -- | -- | |||||
(4,312,718) | (335,862) | (2,380,765) | (2,352,147) | (3,279,672) | (3,483,285) | |||||
|
|
|
|
|
| |||||
53,270,556 | 25,871,292 | 11,370,453 | 10,422,642 | 8,899,103 | 9,788,237 | |||||
3,495,222 | 319,175 | 1,785,999 | 1,991,623 | 1,077,899 | 1,076,052 | |||||
(29,126,480) | (17,235,363) | (11,188,628) | (8,541,313) | (18,830,444) | (18,208,485) | |||||
27,639,298 | 8,955,104 | 1,967,824 | 3,872,952 | (8,853,442) | (7,344,196) | |||||
49,245,396 | 15,574,542 | 1,362,001 | 3,394,069 | (10,536,227) | (7,341,984) | |||||
|
|
|
|
|
| |||||
79,103,756 | 63,529,214 | 51,957,149 | 48,563,080 | 82,231,266 | 89,573,250 | |||||
$128,349,152 | $79,103,756 | $53,319,150 | $51,957,149 | $71,695,039 | $82,231,266 | |||||
$179,443 | $-- | $49,569 | $50,175 | $96,187 | $248,570 | |||||
Statements of Changes in Net Assets (continued)
Hibernia Funds
August 31, 2005
| Cash Reserve | U.S. Treasury | ||||||
| Year Ended | Year Ended | Year Ended | Year Ended | ||||
Increase (Decrease) in Net Assets |
|
|
|
| ||||
Operations: |
|
|
|
| ||||
Net investment income | $2,652,085 | $938,040 | $2,806,348 | $570,567 | ||||
Net realized gain (loss) on investments | (614) | 188 | -- | -- | ||||
Change in net assets resulting from operations | 2,651,471 | 938,228 | 2,806,348 | 570,567 | ||||
Distributions to Shareholders: |
|
|
|
| ||||
Distributions from net investment income | (2,651,462)(1) | (938,533)(2) | (2,804,815) | (570,153) | ||||
Share Transactions: |
|
|
|
| ||||
Proceeds from sale of shares | 283,720,645 | 287,135,245 | 5,465,772,446 | 1,909,988,046 | ||||
Net asset value of shares issued to shareholders in payment of distributions declared | 1,144,073 | 370,059 | 634,739 | 134,843 | ||||
Cost of shares redeemed | (317,154,467) | (303,724,419) | (5,414,646,676) | (1,979,193,244) | ||||
Change in net assets from share transactions | (32,289,749) | (16,219,115) | 51,760,509 | (69,070,355) | ||||
Change in net assets | (32,289,740) | (16,219,420) | 51,762,042 | (69,069,941) | ||||
Net Assets: |
|
|
|
| ||||
Beginning of period | 167,032,859 | 183,252,279 | 152,264,496 | 221,334,437 | ||||
End of period | $134,743,119 | $67,032,859 | $204,026,538 | $152,264,496 | ||||
Undistributed net investment income (accumulated net investment income (loss)) included in net assets at end of period | $229 | $(394) | $1,745 | $(181) | ||||
(1) Represents income distributions of $2,644,626 and $6,836 for Class A Shares and Class B Shares, respectively.
(2) Represents income distributions of $936,513 and $2,020 for Class A Shares and Class B Shares, respectively.
(See Notes which are an integral part of the Financial Statements)
Combined Notes to Financial Statements
Hibernia Funds
August 31, 2005
(1) ORGANIZATION
Hibernia Funds (the “Trust”), organized as a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Trust consists of seven portfolios (individually referred to as the “Fund”, or collectively as the “Funds”) which are presented herein:
Portfolio Name | Diversification | Investment Objective |
Hibernia Capital Appreciation Fund | diversified | provide growth of capital and income |
Hibernia Louisiana Municipal Income Fund | non-diversified | provide current income which is generally exempt from federal income tax and personal income taxes imposed by the state of Louisiana |
Hibernia Mid Cap Equity Fund | diversified | total return |
Hibernia Total Return Bond Fund | diversified | maximize total return |
Hibernia U.S. Government Income Fund | diversified | provide current income |
Hibernia Cash Reserve Fund | diversified | provide current income consistent with stability of principal |
Hibernia U.S. Treasury Money Market Fund | diversified | provide current income consistent with stability of principal and liquidity |
The assets of each portfolio are segregated and a shareholder’s interest is limited to the portfolio in which shares are held. Capital Appreciation Fund, Louisiana Municipal Income Fund, Mid Cap Equity Fund and Cash Reserve Fund offer two classes of shares: Class A Shares and Class B Shares. All shares of Capital Appreciation Fund, Louisiana Municipal Income Fund, Mid Cap Equity Fund and Cash Reserve Fund have equal rights with respect to voting, except on class-specific matters.
(2) SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies utilized by the Funds in the preparation of their financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.
Investment Valuations--Municipal bonds are valued by an independent pricing service, taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type of issue and any other factors or market data the pricing service deems relevant. Total Return Bond Fund and U.S. Government Income Fund generally value fixed income securities according to prices furnished by an independent pricing service, except that fixed income securities with remaining maturities of less than 60 days at the time of purchase may be valued at amortized cost. Listed equity securities are valued at the last sale price or official closing price reported on a national securities exchange. If unavailable, the security is generally valued at the mean between the last closing bid and asked prices. Cash Reserve Fund and U.S. Treasury Money Market Fund use the amortized cost method to value portfolio securities in accordance with Rule 2a-7 under the Act. Capital Appreciation Fund, Louisiana Municipal Income Fund, Mid Cap Equity Fund, Total Return Bond Fund and U.S. Government Income Fund generally value short-term securities according to prices furnished by an independent pricing service, except that short-term securities with remaining maturities of less than 60 days at the time of purchase may be valued at amortized cost. Prices furnished by an independent pricing service are intended to be indicative of the mean between the bid and asked prices currently offered to institutional investors for the securities. Investments in other open-end regulated investment companies are valued at net asset value. Securities for which no quotations are readily available are valued at fair value as determined in accordance with procedures established by and under general supervision of the Board of Trustees (the “Trustees”).
Repurchase Agreements--It is the policy of the Funds to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank’s vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Funds to monitor, on a daily basis, the market value of each repurchase agreement’s collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.
The Funds will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Funds’ adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Trustees. Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement.
Investment Income, Gains and Losses, Expenses and Distributions--Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Distributions of net investment income are declared daily and paid monthly for Cash Reserve Fund and U.S. Treasury Money Market Fund. Distributions of net investment income are declared and paid quarterly for Capital Appreciation Fund and Mid Cap Equity Fund. Distributions of net investment income are declared and paid monthly for Louisiana Municipal Income Fund, Total Return Bond Fund and U.S. Government Income Fund. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that each class bears certain expenses unique to that class such as distribution and shareholder services fees. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.
Premium and Discount Amortization/Paydown Gains and Losses--All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income.
Federal Taxes--It is the Funds’ policy to comply with the Subchapter M provisions of the Internal Revenue Code (the “Code”) and to distribute to shareholders each year substantially all of their income. Accordingly, no provision for federal income tax is necessary.
Withholding taxes, and where appropriate, deferred withholding taxes, on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country’s tax rules and rates.
When-Issued and Delayed Delivery Transactions--The Funds may engage in when-issued or delayed delivery transactions. The Funds record when-issued securities on the trade date and maintain security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.
Use of Estimates--The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.
Other--Investment transactions are accounted for on a trade date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.
(3) SHARES OF BENEFICIAL INTEREST
The following tables summarize share activity:
EQUITY AND INCOME FUNDS
| Capital Appreciation Fund | |||||||
| Year Ended | Year Ended | ||||||
Class A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 1,475,551 | $27,805,216 | 1,228,494 | $22,586,640 | ||||
Shares issued to shareholders in payment of distributions declared | 638,625 | 11,838,628 | 701,667 | 12,314,274 | ||||
Shares redeemed | (2,837,043) | (53,461,333) | (2,012,927) | (37,066,876) | ||||
Net change resulting from Class A | (722,867) | $(13,817,489) | (82,766) | $(2,165,962) | ||||
| Capital Appreciation Fund | |||||||
| Year Ended | Year Ended | ||||||
Class B Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 12,967 | $230,337 | 49,264 | $864,339 | ||||
Shares issued to shareholders in payment of distributions declared | 40,677 | 714,686 | 45,927 | 767,442 | ||||
Shares redeemed | (248,648) | (4,481,659) | (102,803) | (1,811,869) | ||||
Net change resulting from Class B | (195,004) | $(3,536,636) | (7,612) | $(180,088) | ||||
Net change resulting from Fund | (917,871) | $(17,354,125) | (90,378) | $(2,346,050) | ||||
| Louisiana Municipal Income Fund | |||||||
| Year Ended | Year Ended | ||||||
Class A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 561,409 | $6,361,770 | 472,447 | $5,372,221 | ||||
Shares issued to shareholders in payment of distributions declared | 101,474 | 1,146,892 | 119,837 | 1,361,079 | ||||
Shares redeemed | (867,702) | (9,823,280) | (969,932) | (10,986,254) | ||||
Net change resulting from Class A | (204,819) | $(2,314,618) | (377,648) | $(4,252,954) | ||||
| Louisiana Municipal Income Fund | |||||||
| Year Ended | Year Ended | ||||||
Class B Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 14,201 | $161,566 | 32,536 | $370,795 | ||||
Shares issued to shareholders in payment of distributions declared | 6,606 | 74,705 | 8,078 | 91,790 | ||||
Shares redeemed | (38,242) | (432,944) | (94,863) | (1,071,168) | ||||
Net change resulting from Class B | (17,435) | $(196,673) | (54,249) | $(608,583) | ||||
Net change resulting from Fund | (222,254) | $(2,511,291) | (431,897) | $(4,861,537) | ||||
| Mid Cap Equity Fund | |||||||
| Year Ended | Year Ended | ||||||
Class A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 3,272,065 | $52,844,795 | 1,713,132 | $25,142,095 | ||||
Shares issued to shareholders in payment of distributions declared | 214,458 | 3,294,077 | 22,026 | 300,002 | ||||
Shares redeemed | (1,717,402) | (28,277,635) | (1,161,466) | (16,640,166) | ||||
Net change resulting from Class A | 1,769,121 | $27,861,237 | 573,692 | $8,801,931 | ||||
| Mid Cap Equity Fund | |||||||
| Year Ended | Year Ended | ||||||
Class B Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 27,268 | $425,761 | 51,655 | $729,197 | ||||
Shares issued to shareholders in payment of distributions declared | 13,758 | 201,145 | 1,464 | 19,173 | ||||
Shares redeemed | (55,315) | (848,845) | (43,905) | (595,197) | ||||
Net change resulting from Class B | (14,289) | $(221,939) | 9,214 | $153,173 | ||||
Net change resulting from Fund | 1,754,832 | $27,639,298 | 582,906 | $8,955,104 | ||||
| Total Return Bond Fund | |||||||
| Year Ended | Year Ended | ||||||
| Shares | Dollars | Shares | Dollars | ||||
Shares sold | 1,161,593 | $11,370,453 | 1,051,018 | $10,422,642 | ||||
Shares issued to shareholders in payment of distributions declared | 182,796 | 1,785,999 | 200,348 | 1,991,623 | ||||
Shares redeemed | (1,144,736) | (11,188,628) | (863,084) | (8,541,313) | ||||
Net change resulting from Fund | 199,653 | $1,967,824 | 388,282 | $3,872,952 | ||||
| U.S. Government Income Fund | |||||||
| Year Ended | Year Ended | ||||||
| Shares | Dollars | Shares | Dollars | ||||
Shares sold | 877,702 | $8,899,103 | 950,641 | $9,788,237 | ||||
Shares issued to shareholders in payment of distributions declared | 106,283 | 1,077,899 | 104,299 | 1,076,052 | ||||
Shares redeemed | (1,852,318) | (18,830,444) | (1,765,729) | (18,208,485) | ||||
Net change resulting from Fund | (868,333) | $(8,853,442) | (710,789) | $(7,344,196) | ||||
MONEY MARKET FUNDS
| Cash Reserve Fund | |||||||
| Year Ended | Year Ended | ||||||
Class A Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 283,641,622 | $283,641,622 | 287,007,608 | $287,007,608 | ||||
Shares issued to shareholders in payment of distributions declared | 1,137,501 | 1,137,501 | 368,094 | 368,094 | ||||
Shares redeemed | (317,039,025) | (317,039,025) | (303,334,896) | (303,334,896) | ||||
Net change resulting from Class A | (32,259,902) | $(32,259,902) | (15,959,194) | $(15,959,194) | ||||
| Cash Reserve Fund | |||||||
| Year Ended | Year Ended | ||||||
Class B Shares | Shares | Dollars | Shares | Dollars | ||||
Shares sold | 79,023 | $79,023 | 127,637 | $127,637 | ||||
Shares issued to shareholders in payment of distributions declared | 6,572 | 6,572 | 1,965 | 1,965 | ||||
Shares redeemed | (115,442) | (115,442) | (389,523) | (389,523) | ||||
Net change resulting from Class B | (29,847) | $(29,847) | (259,921) | $(259,921) | ||||
Net change resulting from Fund | (32,289,749) | $(32,289,749) | (16,219,115) | $(16,219,115) | ||||
| U.S. Treasury Money Market Fund | |||||||
| Year Ended | Year Ended | ||||||
| Shares | Dollars | Shares | Dollars | ||||
Shares sold | 5,465,772,446 | $5,465,772,446 | 1,909,988,046 | $1,909,988,046 | ||||
Shares issued to shareholders in payment of distributions declared | 634,739 | 634,739 | 134,843 | 134,843 | ||||
Shares redeemed | (5,414,646,676) | (5,414,646,676) | (1,979,193,244) | (1,979,193,244) | ||||
Net change resulting from Fund | 51,760,509 | $51,760,509 | (69,070,355) | $(69,070,355) | ||||
(4) FEDERAL TAX INFORMATION
The timing and character of income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are due in part to differing treatments for market discounts and discount accretion/premium amortization on debt securities.
For the year ended August 31, 2005, permanent differences identified and reclassified among the components of net assets were as follows:
Fund | Paid-In | Undistributed | Accumulated | |||
Louisiana Municipal Income Fund | $-- | $55,682 | $(55,682) | |||
Total Return Bond Fund | -- | 275,910 | (275,910) | |||
U.S. Government Income Fund | -- | 321,854 | (321,854) | |||
U.S. Treasury Money Market Fund | -- | 393 | (393) | |||
Net investment income, net realized gains (losses), and net assets were not affected by these reclassifications.
The tax character of distributions as reported on the Statements of Changes in Net Assets for the years ended August 31, 2005 and 2004, were as follows:
2005 | 2004 | |||||||||||
Fund | Tax-Exempt | Ordinary | Long-Term | Tax-Exempt | Ordinary | Long-Term | ||||||
Capital Appreciation Fund | $-- | $1,968,218 | $15,427,956 | $-- | $1,349,529 | $15,321,751 | ||||||
Louisiana Municipal Income Fund | 3,221,308 | 498 | 242,663 | 3,509,984 | 165 | 211,682 | ||||||
Mid Cap Equity Fund | -- | 15,766 | 4,296,952 | -- | -- | 335,862 | ||||||
Total Return Bond Fund | -- | 2,380,765 | -- | -- | 2,352,147 | -- | ||||||
U.S. Government Income Fund | -- | 3,279,672 | -- | -- | 3,483,285 | -- | ||||||
Cash Reserve Fund | -- | 2,651,462 | -- | -- | 938,533 | -- | ||||||
U.S. Treasury Money Market Fund | -- | 2,804,815 | -- | -- | 570,153 | -- | ||||||
* For tax purposes short-term capital gain distributions are considered ordinary income.
As of August 31, 2005, the components of distributable earnings on a tax basis were as follows:
Fund | Undistributed | Undistributed | Undistributed | Net | Capital Loss | |||||
Capital Appreciation Fund | $-- | $517,554 | $16,729,449 | $79,961,550 | $-- | |||||
Louisiana Municipal Income Fund | 242,479 | 66,268 | 2,174,223 | 2,764,574 | -- | |||||
Mid Cap Equity Fund | -- | 179,444 | 4,731,278 | 30,498,461 | -- | |||||
Total Return Bond Fund | -- | 228,824 | -- | 932,214 | 1,977,756 | |||||
U.S. Government Income Fund | -- | 352,589 | -- | (152,950) | 270,509 | |||||
Cash Reserve Fund | -- | 181,402 | -- | -- | 48,629 | |||||
U.S. Treasury Money Market Fund | -- | 337,016 | -- | -- | 393 | |||||
For federal income tax purposes, the following amounts apply as of August 31, 2005:
Fund | Cost of | Unrealized | Unrealized | Net Unrealized | ||||
Capital Appreciation Fund | $168,943,194 | $81,301,106 | $1,339,556 | $79,961,550 | ||||
Louisiana Municipal Income Fund | 76,953,056 | 2,815,240 | 50,666 | 2,764,574 | ||||
Mid Cap Equity Fund | 100,182,898 | 31,255,511 | 757,050 | 30,498,461 | ||||
Total Return Bond Fund | 54,976,660 | 1,058,908 | 126,694 | 932,214 | ||||
U.S. Government Income Fund | 78,790,686 | 168,290 | 321,240 | (152,950) | ||||
Cash Reserve Fund | 134,736,118 * | -- | -- | -- | ||||
U.S. Treasury Money Market Fund | 204,385,581 * | -- | -- | -- | ||||
* at amortized cost.
The difference between book-basis and tax-basis unrealized appreciation/depreciation is due in part to differing treatments for tax deferral of losses on wash sales and discount accretion/premium amortization on debt securities.
At August 31, 2005, Total Return Bond Fund, U.S. Government Income Fund, Cash Reserve Fund and U.S. Treasury Money Market Fund had capital loss carryforwards, as noted below, which will reduce the Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforwards will expire as follows:
Expiration Years | ||||||||||
Fund | 2010 | 2011 | 2012 | 2013 | Total | |||||
Total Return Bond Fund | $51,198 | $1,926,558 | $-- | $-- | $1,977,756 | |||||
U.S. Government Income Fund | -- | 90,023 | 180,486 | -- | 270,509 | |||||
Cash Reserve Fund | 931 | 44,663 | 3,035 | -- | 48,629 | |||||
U.S. Treasury Money Market Fund | -- | -- | -- | 393 | 393 | |||||
Under current tax regulations, capital losses realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of August 31, 2005, for federal income tax purposes, Cash Reserve Fund had post October losses of $614 which were deferred to September 1, 2005.
U.S. Government Income Fund and Total Return Bond Fund used capital loss carryforwards of $1,165,885 and $201,217, respectively, to offset taxable gains realized during the year ended August 31, 2005.
Louisiana Municipal Income Fund received a copy of a proposed adverse determination letter issued by the Internal Revenue Service to the issuer of the following security. In the event that this determination is not reversed or otherwise resolved by the issuer, Fund may need to report the income from this security as taxable income.
| Market Value |
St. Charles Parish, LA, Solid Waste Disposal Revenue Bonds, 7.00% (LA Power & LIght Co.)/(AMBAC INS)/(Original Issue Yield: 7.04%), 12/1/2022 | $1,001,050 |
(5) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
Investment Adviser Fee--Prior to February 1, 2005, a separately identifiable division of Hibernia National Bank (HNB), Hibernia Asset Management, provided investment advisory services to each portfolio of the Hibernia Funds. As of February 1, 2005, HNB organized a separate subsidiary to provide all investment advisory services, Hibernia Asset Management L.L.C. (HAM), a Louisiana limited liability company, of which HNB is the sole member. HAM succeeded to the contract under which investment advisory services are provided to each of the portfolios of the Hibernia Funds. This succession did not result in a change of actual control or management of the Funds’ Adviser. HAM, the Funds’ investment adviser (the “Adviser”), receives for its services an annual investment adviser fee based on a percentage of each Fund’s average daily net assets as follows:
Fund | Annual | |
Capital Appreciation Fund | 0.75% | |
Louisiana Municipal Income Fund | 0.45% | |
Mid Cap Equity Fund | 0.75% | |
Total Return Bond Fund | 0.70% | |
U.S. Government Income Fund | 0.45% | |
Cash Reserve Fund | 0.40% | |
U.S. Treasury Money Market Fund | 0.40% | |
The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion. For the year ended August 31, 2005, the Adviser voluntarily waived all or a portion of its fee for the following Funds:
Fund |
| |
Louisiana Municipal Income Fund | $197,921 | |
Total Return Bond Fund | 219,381 | |
U.S. Government Income Fund | 169,464 | |
Cash Reserve Fund | 383,086 | |
Administrative Fee--Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Funds with certain administrative personnel and services. The fee paid to FAS is based on the level of average aggregate daily net assets of the Trust for the reporting period. FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion.
Maximum | Average Aggregate Daily Net Assets of | |
0.150% | on the first $250 million | |
0.125% | on the next $250 million | |
0.100% | on the next $250 million | |
0.075% | on assets in excess of $750 million | |
For the year ended August 31, 2005, the net fee paid to FAS was 0.118% of average aggregate net assets of the Funds.
Distribution Services Fee--The Funds have adopted a Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Funds will reimburse Edgewood Services, Inc. (Edgewood), the distributor, from the net assets of the Funds to finance activities intended to result in the sale of each Fund’s shares. The Plan provides that the Funds, except for Class B Shares of the Capital Appreciation Fund, Louisiana Municipal Income Fund, Mid Cap Equity Fund and Cash Reserve Fund, may incur distribution expenses up to 0.25% of the average daily net assets of the Funds, annually, to reimburse Edgewood. Class B Shares of the Capital Appreciation Fund, Louisiana Municipal Income Fund, Mid Cap Equity Fund and Cash Reserve Fund may incur distribution expenses of up to 0.75% of average daily net assets of the Class B Shares, annually, to reimburse Edgewood. Edgewood may voluntarily choose to waive any portion of its fee. Edgewood can modify or terminate this voluntary waiver at any time at its sole discretion. For the year ended August 31, 2005, Edgewood voluntarily waived all or a portion of its fee for the following Funds:
Fund |
| |
Louisiana Municipal Income Fund | $77,496 | |
U.S. Government Income Fund | 75,083 | |
Cash Reserve Fund | 211,789 | |
For the year ended August 31, 2005, the U.S. Treasury Money Market Fund did not incur a distribution services fee. Rather than paying investment professionals directly, the Funds may pay fees to Edgewood and Edgewood will use the fees to compensate investment professionals. For the year ended August 31, 2005, Edgewood did not retain any fees paid by the Funds.
Shareholder Services Fee--Capital Appreciation Fund, Louisiana Municipal Income Fund, Mid Cap Equity Fund and Cash Reserve Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of each Fund’s Class B Shares to financial institutions or to Federated Shareholder Services Company (FSSC), a subsidiary of Federated Investors, Inc., for providing services to shareholders and maintaining shareholder accounts. Under certain agreements, rather than paying financial institutions directly, a Fund may pay Service Fees to FSSC and FSSC will use the fees to compensate financial institutions. FSSC or these financial institutions may voluntarily choose to waive any portion of their fee. This voluntary waiver can be modified or terminated at any time. For the year ended August 31, 2005, FSSC did not retain any fees paid by the Funds.
Portfolio Accounting Fees--Federated Services Company (FServ) maintains the Funds’ accounting records for which it receives a fee. The fee is based on the level of each Fund’s average daily net assets for the reporting period, plus out-of-pocket expenses. FServ may voluntarily choose to waive any portion of its fee. FServ can modify or terminate this voluntary waiver at any time at its sole discretion.
Custodian Fees--HNB is the Funds’ custodian for which it receives a fee. The fee is based on the level of each Fund’s average daily net assets for the reporting period, plus out-of-pocket expenses.
Other Affiliated Parties and Transactions--Pursuant to an exemptive order issued by the Securities and Exchange Commission, the Funds may invest in certain money market funds which are distributed by an affiliate of the Funds’ distributor. Income distributions earned by the Funds are recorded as income in the accompanying financial statements as follows:
Fund | Fund Name | Income from | ||
Louisiana Municipal Income Fund | Tax-Free Obligations Fund | $39,658 | ||
General--Certain of the Officers of the Trust are Officers and Directors or Trustees of the above companies.
(6) INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended August 31, 2005 were as follows:
Fund | Purchases | Sales | ||
Capital Appreciation Fund | $81,645,420 | $114,414,269 | ||
Louisiana Municipal Income Fund | 41,615,234 | 46,970,980 | ||
Mid Cap Equity Fund | 61,719,790 | 38,386,341 | ||
Total Return Bond Fund | 52,522,668 | 24,889,030 | ||
U.S. Government Income Fund | -- | 3,594,210 | ||
(7) CONCENTRATION OF CREDIT RISK
Since Louisiana Municipal Income Fund invests a substantial portion of its assets in issuers located in one state, it will be more susceptible to factors adversely affecting issuers of that state than would be a comparable tax-exempt mutual fund that invests nationally. In order to reduce the credit risk associated with such factors, at August 31, 2005, 77.2% of the securities in the portfolio of investments were backed by letters of credit or bond insurance of various financial institutions and financial guaranty assurance agencies. The largest percentage of investments insured by or supported (backed) by a letter of credit from any one institution or agency was 23.4% of total investments.
In the aftermath of the devastation to southern Louisiana as a result of Hurricanes Katrina and Rita, the Fund’s manager has identified the portfolio holdings related to the affected areas in the state. These constitute approximately 25% of the Fund’s total net assets. Of these bonds, all but two are insured by municipal bond insurers. Of the two uninsured bonds, payment for one is escrowed and the other is backed by GNMA/FNMA collateral, which is rated AAA. Management has reviewed the Standard and Poor’s and Moody’s Investor Service’s analysis, which suggests that the bond insurance industry will be able to comfortably weather any losses resulting from Katrina and Rita.
(8) FEDERAL TAX INFORMATION (UNAUDITED)
For the year ended August 31, 2005, the amount of long-term capital gain designated by the Funds was as follows:
Fund |
| |
Capital Appreciation Fund | $15,427,957 | |
Louisiana Municipal Income Fund | 242,663 | |
Mid Cap Equity Fund | 4,296,952 | |
At August 31, 2005, the following percentage represents the portion of distributions from net investment income which is exempt from federal income tax, other than federal AMT:
Fund | ||
Louisiana Municipal Income Fund | 99.98% | |
Of the ordinary income (including short-term capital gain) distributions made by the Funds during the year ended August 31, 2005, the following percentages qualify for the dividend received deduction available to corporate shareholders:
Fund Name |
| |
Capital Appreciation Fund | 99.05% | |
Mid Cap Equity Fund | 100.00% | |
For the fiscal year ended August 31, 2005, the following percentages of total ordinary dividends paid by the Funds are qualifying dividends which may be subject to a maximum tax rate of 15% as provided for by the Jobs and Growth Tax Relief Act of 2003. Complete information is reported in conjunction with the reporting of your distributions on Form 1099-DIV. The percentages were as follows:
Fund Name | ||
Capital Appreciation Fund | 100.00% | |
Mid Cap Equity Fund | 100.00% | |
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Hibernia Funds
We have audited the accompanying statements of assets and liabilities including the portfolios of investments, of Hibernia Capital Appreciation Fund, Hibernia Louisiana Municipal Income Fund, Hibernia Mid Cap Equity Fund, Hibernia Total Return Bond Fund, Hibernia U.S. Government Income Fund, Hibernia Cash Reserve Fund and Hibernia U.S. Treasury Money Market Fund (the seven portfolios constituting the Hibernia Funds) (the “Trust”), as of August 31, 2005, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trust’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2005, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the portfolios constituting the Hibernia Funds at August 31, 2005, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
/s/Ernst & Young LLP
Boston, Massachusetts
October 13, 2005
Board of Trustees and Trust Officers
The following tables give information about the Independent Trustees (i.e., those Trustees who are not “interested persons” of the Trust, as defined in the 1940 Act) and the senior officers of the Trust. As of December 31, 2004, the Hibernia Fund Complex consisted of seven portfolios. Each Officer is elected annually. Unless otherwise noted, each Board member oversees all portfolios in the Hibernia Fund Complex and serves for an indefinite term. The Funds’ Statement of Additional Information includes additional information about the Funds’ Trustees and is available, without charge and upon request, by calling 1-800-999-0426.
INDEPENDENT TRUSTEE BACKGROUND
Name | Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s) | |
Arthur Rhew Dooley, Jr. | Principal Occupation: Chairman, Dooley Tackaberry, Inc. (distributors and fabricators of fire protection and safety equipment), 1967 to Present; Registered Professional Engineer (Inactive). Other Directorships Held: Director, Loop Cold Storage Company. | |
Teri G. Fontenot | Principal Occupation: President and Chief Executive Officer of Woman’s Hospital, Baton Rouge, LA. Other Directorships Held: Past Chair of Louisiana Hospital Association; Federal Reserve Bank of Atlanta, Director; Committee of 100; Chair of Hospital Billing and Collection Services Board; National Institutes of Health, Advisory Committee on Research on Women’s Health; Louisiana Research and Technology Foundation Executive Committee; American Hospital Association. | |
Joe N. Averett, Jr. | Principal Occupation: Director of Penn Virginia Corporation. Previous Position: President of Crystal Gas Storage, Inc., a wholly owned subsidiary of El Paso Corporation (NYSE:EP). Other Directorships Held: Sci Port Discovery Center, Past Chairman and Current Director; Sci-Port Foundation, Director; Community Foundation of Shreveport-Bossier, Treasurer and Director; Committee of 100, Director; Louisiana State University in Shreveport Foundation, Past President and Current Director; Petroleum Club of Shreveport, Past President and Director; Caddo Public Education Foundation, past Chairman and Director; Red River Radio Network (affiliate of National Public Radio), past Director; First United Methodist Church of Shreveport, Past Member of Administrative Board and Finance Committee. | |
Ernest E. Howard III | Principal Occupation: Retired. Previous Positions: President and Chief Executive Officer of FM Properties, predecessor to Stratus Properties, Inc. (NASDAQ: STRS) and Senior Vice President of Freeport-McMoRan Inc. and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). Other Directorships Held: Director, Superior Energy Services, Inc. | |
OFFICERS
Name | Principal Occupation(s) for Past Five Years and Previous Position(s) | |
Charles L. Davis, Jr. | Principal Occupations: Vice President, Managing Director of Mutual Fund Services, Federated Services Company; and President, Edgewood Services, Inc. Previous Positions: President, Federated Clearing Services; and Director, Business Development, Mutual Fund Services, Federated Services Company. | |
Donald P. Lee | Principal Occupations: Director, Private Client Group Risk Management, Hibernia National Bank. Previous Positions: Corporate Counsel, Hibernia National Bank 2002-2003; General Counsel and Corporate Secretary IBERIA BANK, 1997-2001. | |
Richard J. Thomas | Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services. | |
Timothy S. Johnson | Principal Occupation: Partner, Reed Smith LLP. Previous Positions: Vice President and Corporate Counsel, Federated Services Company; Secretary, Edgewood Services, Inc.; Secretary or Assistant Secretary of various funds distributed by Edgewood Services, Inc. and Federated Securities Corp., Assistant Secretary of the Trust December 1997-December 2001. | |
Mutual funds are not bank deposits, or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal. An investment in Hibernia Cash Reserve Fund and HIbernia U.S. Treasury Money Market Fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Money Market Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in these Funds.
This report is authorized for distribution to prospective investors only when preceded or accompanied by the Funds’ prospectus, which contains facts concerning their objectives and policies, management fees, expenses and other information.
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to securities held in a Fund’s portfolio is available, without change and upon request, by calling 1-800-562-9007, Ext. 3-3326. A report of how the Funds voted any such proxies during the most recent 12-month period ended June 30 is available through the Hibernia Funds website. Go to www.Hiberniafunds.com; select Proxy Voting Record; then select a Fund. This report on “Form N-PX” is also available from the EDGAR database on the SEC’s website at www.sec.gov.
QUARTERLY PORTFOLIO SCHEDULE
The Funds file with the SEC a complete schedule of their portfolio holdings, as of the close of the first and third quarters of their fiscal year, on “Form N-Q.” These filings are available from the EDGAR database on the SEC’s website at www.sec.gov; and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room).
Edgewood Services, Inc., Distributor of the Funds
G01262-01 (10/05)
Item 2. Code of Ethics (a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer. (c) Not Applicable (d) Not Applicable (e) Not Applicable (f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers. Item 3. Audit Committee Financial Expert The registrant's Board has determined that each member of the Board's Audit Committee is an "audit committee financial expert," and that each such member is "independent," for purposes of this Item. The Audit Committee consists of the following Board members: Joe N. Averett,Jr., Arthur Rhew Dooley, Jr., Teri G. Fontenot and Ernest E. Howard, III. Item 4. Principal Accountant Fees and Services (a) Audit Fees billed to the registrant for the two most recent fiscal years: Fiscal year ended 2005 - $134,000 Fiscal year ended 2004 - $132,000 (b) Audit-Related Fees billed to the registrant for the two most recent fiscal years: Fiscal year ended 2005 - $0 Fiscal year ended 2004 - $0 Amount requiring approval of the registrant's audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively. (c) Tax Fees billed to the registrant for the two most recent fiscal years: Fiscal year ended 2005 - $0 Fiscal year ended 2004 - $0 Amount requiring approval of the registrant's audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively. (d) All Other Fees billed to the registrant for the two most recent fiscal years: Fiscal year ended 2005 - $0 Fiscal year ended 2004 - $0 Amount requiring approval of the registrant's audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively. (e)(1) Audit Committee Policies regarding Pre-approval of Services. The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor's independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee. Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate its responsibilities to pre-approve services performed by the independent auditor to management. The Audit Committee has delegated pre-approval authority to its Chairman. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable. AUDIT SERVICES The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee must approve any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters. In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other Audit Services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain Audit services, all other Audit services must be specifically pre-approved by the Audit Committee. AUDIT-RELATED SERVICES Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Company's financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and has pre-approved certain Audit-related services, all other Audit-related services must be specifically pre-approved by the Audit Committee. TAX SERVICES The Audit Committee believes that the independent auditor can provide Tax services to the Company such as tax compliance, tax planning and tax advice without impairing the auditor's independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain Tax services, all Tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee. ALL OTHER SERVICES With respect to the provision of services other than audit, review or attest services the pre-approval requirement is waived if: (1) The aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the registrant, the registrant's adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant to its accountant during the fiscal year in which the services are provided; (2) Such services were not recognized by the registrant, the registrant's adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant at the time of the engagement to be non-audit services; and (3) Such services are promptly brought to the attention of the Audit Committee of the issuer and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the board of directors to whom authority to grant such approvals has been delegated by the Audit Committee. The Audit Committee may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the auditor. The SEC's rules and relevant guidance should be consulted to determine the precise definitions of prohibited non-audit services and the applicability of exceptions to certain of the prohibitions. PRE-APPROVAL FEE LEVELS Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee. PROCEDURES Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Principal Accounting Officer and/or Internal Auditor, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC's rules on auditor independence. (e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X: 4(b) Fiscal year ended 2005 - 0% Fiscal year ended 2004 - 0% Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively. 4(c) Fiscal year ended 2005 - 0% Fiscal year ended 2004 - 0% Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively. 4(d) Fiscal year ended 2005 - 0% Fiscal year ended 2004 - 0% Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively. (f) NA (g) Non-Audit Fees billed to the registrant, the registrant's investment adviser, and certain entities controlling, controlled by or under common control with the investment adviser: Fiscal year ended 2005 - $20,000 Fiscal year ended 2004 - $20,000 (h) The registrant's Audit Committee has considered that the provision of non-audit services that were rendered to the registrant's adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. Item 5. Audit Committee of Listed Registrants Not Applicable Item 6. Schedule of Investments Not Applicable Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies Not Applicable Item 8. Portfolio Managers of Closed-End Management Investment Companies Not Applicable Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not Applicable Item 10. Submission of Matters to a Vote of Security Holders Not Applicable Item 11. Controls and Procedures (a) The registrant's President and Treasurer have concluded that the registrant's disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR. (b) There were no changes in the registrant's internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12. Exhibits SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Registrant Hibernia Funds By /S/ Richard J. Thomas Richard J. Thomas, Principal Financial Officer (insert name and title) Date October 21, 2005 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/ Charles L. Davis, Jr. Charles L. Davis, Jr., Principal Executive Officer Date October 24, 2005 By /S/ Richard J. Thomas Richard J. Thomas, Principal Financial Officer Date October 21, 2005