UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-04087
--------------------------------
EXETER FUND, INC.
- ----------------------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
290 WOODCLIFF DRIVE, FAIRPORT, NY 14450
- ----------------------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
B. REUBEN AUSPITZ 290 WOODCLIFF DRIVE, FAIRPORT, NY 14450
- ----------------------------------------------------------------------
(NAME AND ADDRESS OF AGENT FOR SERVICE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 585-325-6880
--------------
DATE OF FISCAL YEAR END: OCTOBER 31, 2005
------------------------------------------
DATE OF REPORTING PERIOD: NOVEMBER 1, 2004 THROUGH APRIL 30, 2005
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FORM N-CSR IS TO BE USED BY MANAGEMENT INVESTMENT COMPANIES TO FILE REPORTS WITH
THE COMMISSION NOT LATER THAN 10 DAYS AFTER THE TRANSMISSION TO STOCKHOLDERS OF
ANY REPORT THAT IS REQUIRED TO BE TRANSMITTED TO STOCKHOLDERS UNDER RULE 30E-1
UNDER THE INVESTMENT COMPANY ACT OF 1940 (17 CFR 270.30E-1). THE COMMISSION MAY
USE THE INFORMATION PROVIDED ON FORM N-CSR IN ITS REGULATORY, DISCLOSURE REVIEW,
INSPECTION, AND POLICYMAKING ROLES.
A REGISTRANT IS REQUIRED TO DISCLOSE THE INFORMATION SPECIFIED BY FORM N-CSR,
AND THE COMMISSION WILL MAKE THIS INFORMATION PUBLIC. A REGISTRANT IS NOT
REQUIRED TO RESPOND TO THE COLLECTION OF INFORMATION CONTAINED IN FORM N-CSR
UNLESS THE FORM DISPLAYS A CURRENTLY VALID OFFICE OF MANAGEMENT AND BUDGET
("OMB") CONTROL NUMBER. PLEASE DIRECT COMMENTS CONCERNING THE ACCURACY OF THE
INFORMATION COLLECTION BURDEN ESTIMATE AND ANY SUGGESTIONS FOR REDUCING THE
BURDEN TO SECRETARY, SECURITIES AND EXCHANGE COMMISSION, 450 FIFTH STREET, NW,
WASHINGTON, DC 20549-0609. THE OMB HAS REVIEWED THIS COLLECTION OF INFORMATION
UNDER THE CLEARANCE REQUIREMENTS OF 44 U.S.C. SECTION 3507.
ITEM 1: REPORTS TO STOCKHOLDERS
June 27, 2005
To Shareholders of the following Series of the Exeter Fund:
Pro-BlendR Conservative Term Series
Pro-BlendR Moderate Term Series
Pro-BlendR Extended Term Series
Pro-BlendR Maximum Term Series
Tax Managed Series
Equity Series
Overseas Series
Dear Shareholder:
Enclosed is a copy of the Semi-Annual Report for each of the above Series of the
Exeter Fund in which you were invested as of April 30, 2005. The reports include
information about the Series' performance as well as portfolio listings as of
that date.
Please contact our Fund Services department at 1-800-466-3863 if you have any
questions about the Semi-Annual Reports or about the Fund.
Sincerely,
/s/ Amy J. Williams
Amy J. Williams
Fund Services Manager
Exeter Fund, Inc.
Semi-Annual Report
April 30, 2005
Equity Series
Renewal of Investment Advisory Agreement (unaudited)
At the Exeter Fund, Inc. (the "Fund") Board of Director's annual in person
meeting, held on November 18, 2004, the Investment Advisory Agreement (the
"Agreement") between the Fund and Manning & Napier Advisor, Inc. (the "Advisor")
was reviewed by the Board for renewal. In connection with the decision whether
to renew the Agreement, a variety of material was prepared for and reviewed by
the Board. In addition, at the meeting of the Board, representatives of the
Advisor presented additional oral and written information to help the Board
evaluate the Advisor's performance under the Agreement over the previous year.
The Board then deliberated the renewal of the Agreement in light of the various
material provided prior to and at the meeting.
In connection with their review and deliberations, the Board considered the
following factors and reached a conclusion with respect to such factors.
- - The Board considered the services provided by the Advisor under the
Agreement including, among others: deciding what securities to purchase and sell
for each Series; arranging for the purchase and sale of such securities by
placing orders with broker-dealers; administering of the affairs of the Fund
(including the books and records of the Fund not maintained by third party
service providers such as custodian or sub-transfer agent); arranging for the
insurance coverage for the Fund; and supervising the preparation of tax returns,
preparation of SEC filings (including registration statements) and reports to
shareholders for the Fund. The Board discussed the quality of these services
with representatives from the Advisor and concluded that the Advisor was
performing its services to the Fund required under the Agreement in a reasonable
manner.
- - The Board considered the investment performance of the various Series of
the Fund. The investment performance for each Series was reviewed on a
cumulative basis since inception and on a one year basis. In addition,
annualized peformance for the following time periods was considered: inception,
three year, five year, ten year, and current market cycle. Market cycle includes
periods of both rising and falling markets. Returns for established benchmark
indices for each Series were provided for each time period. In addition, the
Board considered at the meeting (and considers on a quarterly basis) a peer
group performance analysis consisting of Morningstar universes of mutual funds
with similar investment objectives. The Board discussed the performance with
representatives from the Advisor and concluded that the investment performance
of each of the Fund's Series was reasonable based on the Fund's actual
performance and comparative performance, especially performance over the current
market cycle.
- - The Board considered the costs of the Advisor's services and the profits
of the Advisor as they relate to the Advisor's services to the Fund under the
Agreement. In reviewing the Advisor's costs and profits, the Board discussed
the Advisor's revenues generated from the Fund (on both an actual and adjusted
basis) and its expenses associated with providing the services under the
Agreement. In addition, the Board reviewed the Advisor's expenses associated
with Fund activities outside of the Agreement (such as expense reimbursements
pursuant to expense caps and payments made by the Advisor to third party
platforms on which shares of the Fund are available for purchase). It was noted
by representatives of the Advisor that 11 of the 15 active Series of the Fund
are currently experiencing expenses above the capped expense ratios. After
discussing the above costs and profits, the Board concluded that the Advisor's
profitability relating to its services provided under the Agreement is
reasonable.
- - The Board considered the fees and expenses of the various Series of the
Fund. The Advisor presented the advisory fees and total expenses for each
Series, including the advisory fee adjusted for any expense reimbursements
(either contractually or voluntarily) paid by the Advisor. The advisory fees
and expense ratios of each Series were compared to an average (on
1
Renewal of Investment Advisory Agreement (unaudited)
both a mean and median basis) of similar funds as disclosed on the Morningstar
database. Representatives of the Advisor discussed with the Board the levels of
its advisory fee for the Series of the Fund and as compared to the median and
mean advisory fees for similar funds as listed on Morningstar. Expense ratios
for every Series are currently below the median and mean for similar funds as
listed on Morningstar. Based on their review of the information provided, the
Board concluded that the fees and expenses of each Series of the Fund were
reasonable on a comparative basis.
- - The Board also considered the other benefits the Advisor derives from its
relationship with the Fund. Such other benefits include certain research
products provided by soft dollars. Given the level of soft dollar transactions
involving the Fund, the Board concluded that these additional benefits to the
Advisor were reasonable.
- - In addition to the factors described above, the Board considered the
Advisor's personnel, the Advisor's investment strategies, the Advisor's policies
and procedures relating to compliance with personal securities transactions, the
Advisor's reputation, expertise and resources in domestic and foreign financial
markets. The Board concluded that these factors support the conclusion that the
Advisor performs its services in a reasonable manner.
- - The Board did not consider economies of scale at this time because of the
multiple uses of the Fund (for the Advisor's discretionary investment account
clients in addition to direct investors), the current profitability of the
Advisor's services to the Fund under the Agreement and the overall size of the
Fund complex.
Based on the Board's conclusions regarding the factors described above, the
Board, including a majority of Directors that are "not interested" as defined in
the Investment Company Act of 1940, approved the renewal of the Agreement for
another year. In the course of their deliberations, the Directors did not
identify any particular information that was all important or controlling.
2
Performance Update as of April 30, 2005 (unaudited)
Average Annual Total Returns
As of April 30, 2005
--------------------------------------------------
One Five Since
Year Year Inception1
----------------------------- ------ -----------
Exeter Fund, Inc. - Equity Series2,3. . . . . . 11.04% 5.23% 7.54%
Standard & Poor's (S&P) 500 Total Return Index4 6.33% -2.94% 2.09%
The following graph compares the value of a $10,000 investment in the Exeter
Fund, Inc. - Equity Series from its inception1 (5/1/98) to present (4/30/05) to
the S&P 500 Total Return Index.
Data for line graph to follow:
Exeter Fund, Inc. S&P 500 Total
Date Equity Series Return Index
- -------- ------------------ --------------
5/1/98 . $ 10,000 $ 10,000
10/31/98 7,750 9,961
10/31/99 10,900 12,561
10/31/00 14,080 13,278
10/31/01 12,870 9,973
10/31/02 11,420 8,468
10/31/03 13,455 10,228
10/31/04 15,678 11,190
4/30/05. 16,630 11,557
1Performance numbers for the Series and Index are calculated from May 1, 1998,
the Collective's inception date (see Note 3 below).
2The Series' performance does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of shares. The
Series' performance is historical and may not be indicative of future results.
3For periods prior to the inception of the Series on July 10, 2002, the
performance figures reflect the performance of the Exeter Trust Company Group
Trust for Employee Benefit Plans - All-Equity Collective Investment Trust (the
"Collective"), which was managed by the Advisor and reorganized into the Series.
The Collective was not open to the public generally, or registered under the
Investment Company Act of 1940 (the "1940 Act"), or subject to certain
restrictions that are imposed by the 1940 Act. If the Collective had been
registered under the 1940 Act, performance may have been adversely affected.
Because the fees of the Collective were lower than the Series' fees, historical
performance would have been lower if the Collective had been subject to the same
fees.
4The S&P 500 Total Return Index is an unmanaged capitalization-weighted measure
of 500 widely held common stocks listed on the New York Stock Exchange, American
Stock Exchange and the Over-the-Counter Market. The Index returns assume daily
reinvestment of dividends and, unlike Series returns, do not reflect any fees or
expenses.
3
Shareholder Expense Example (unaudited)
As a shareholder of the Series, you may incur two types of costs: (1)
transaction costs, including potential wire charges on redemptions and (2)
ongoing costs, including management fees and other Series expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Series and to compare these costs with the ongoing costs of
investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (November 1, 2004 to April 30, 2005).
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Series' actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Series' actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid
during the period. You may use this information to compare the ongoing costs of
investing in the Series 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 costs, such as potential
wire charges on redemptions. Therefore, the second line of the table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
11/1/04 4/30/05 11/1/04-4/30/05
-------------- -------------- ----------------
Actual. . . . . . . . . . . $ 1,000.00 $ 1,060.70 $ 5.36
Hypothetical
(5% return before expenses) $ 1,000.00 $ 1,019.59 $ 5.26
*Expenses are equal to the Series' annualized expense ratio (for the six-month
period) of 1.05%, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period). Expenses are based
on the most recent fiscal half year; therefore, the Series' expense ratio may
differ from the expense ratio based on one-year data in the financial
highlights. The Series' total return would have been lower had certain expenses
not been waived or reimbursed during the period.
4
Portfolio Composition - As of April 30, 2005 (unaudited)
Data for pie chart to follow:
Sector Allocation*
Consumer Discretionary . . . . . . . . . . . . . . . . . . . . . 18.0%
Consumer Staples . . . . . . . . . . . . . . . . . . . . . . . . 7.6%
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.4%
Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.6%
Health Care. . . . . . . . . . . . . . . . . . . . . . . . . . . 13.0%
Industrials. . . . . . . . . . . . . . . . . . . . . . . . . . . 6.8%
Information Technology . . . . . . . . . . . . . . . . . . . . . 8.6%
Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.6%
Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.7%
Cash, short-term investments, and liabilities, less other assets 7.7%
*As a percentage of net assets.
5
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
SHARES (NOTE 2)
------- ---------
COMMON STOCKS - 92.3%
CONSUMER DISCRETIONARY - 18.0%
DIVERSIFIED CONSUMER SERVICES - 1.3%
Weight Watchers International, Inc.*. . . . 700 $ 29,225
----------
HOTELS, RESTAURANTS & LEISURE - 2.3%
Carnival Corp.. . . . . . . . . . . . . . . 1,025 50,102
----------
MEDIA - 8.7%
Cablevision Systems Corp. - Class A*. . . . 2,725 70,714
The E.W. Scripps Co. - Class A. . . . . . . 850 43,291
Time Warner, Inc.*. . . . . . . . . . . . . 4,600 77,326
----------
191,331
----------
SPECIALTY RETAIL - 5.7%
Office Depot, Inc.* . . . . . . . . . . . . 1,650 32,307
RadioShack Corp.. . . . . . . . . . . . . . 2,250 56,182
Staples, Inc. . . . . . . . . . . . . . . . 1,887 35,985
----------
124,474
----------
TOTAL CONSUMER DISCRETIONARY. . . . . . . . 395,132
----------
CONSUMER STAPLES - 7.6%
BEVERAGES - 1.7%
The Coca-Cola Co. . . . . . . . . . . . . . 825 35,838
----------
FOOD & STAPLES RETAILING - 1.5%
Wal-Mart Stores, Inc. . . . . . . . . . . . 675 31,820
----------
FOOD PRODUCTS - 1.1%
The Hain Celestial Group, Inc.* . . . . . . 1,375 24,406
----------
HOUSEHOLD PRODUCTS - 1.1%
The Procter & Gamble Co.. . . . . . . . . . 450 24,367
----------
PERSONAL PRODUCTS - 2.2%
The Estee Lauder Companies, Inc. - Class A. 1,275 48,973
----------
TOTAL CONSUMER STAPLES. . . . . . . . . . . 165,404
----------
ENERGY - 17.4%
ENERGY EQUIPMENT & SERVICES - 15.9%
Baker Hughes, Inc.. . . . . . . . . . . . . 1,550 68,386
Cooper Cameron Corp.* . . . . . . . . . . . 875 48,072
National-Oilwell Varco, Inc.* . . . . . . . 708 28,136
Schlumberger Ltd. . . . . . . . . . . . . . 1,250 85,513
Transocean, Inc.* . . . . . . . . . . . . . 1,225 56,803
Weatherford International Ltd.* . . . . . . 1,175 61,276
----------
348,186
----------
OIL, GAS & CONSUMABLE FUELS - 1.5%
Amerada Hess Corp.. . . . . . . . . . . . . 350 32,777
----------
TOTAL ENERGY. . . . . . . . . . . . . . . . 380,963
----------
The accompanying notes are an integral part of the financial statements.
6
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
SHARES (NOTE 2)
------- ---------
FINANCIALS - 10.6%
CAPITAL MARKETS - 4.4%
The Bank of New York Co., Inc.. . . . . 2,150 $ 60,071
SEI Investments Co. . . . . . . . . . . 1,125 36,911
----------
96,982
----------
COMMERCIAL BANKS - 5.4%
PNC Financial Services Group, Inc.. . . 725 38,592
U.S. Bancorp. . . . . . . . . . . . . . 1,450 40,455
Wachovia Corp.. . . . . . . . . . . . . 775 39,664
----------
118,711
----------
DIVERSIFIED FINANCIAL SERVICES - 0.8%
Principal Financial Group, Inc. . . . . 450 17,586
----------
TOTAL FINANCIALS. . . . . . . . . . . . 233,279
----------
HEALTH CARE - 13.0%
BIOTECHNOLOGY - 1.4%
Millennium Pharmaceuticals, Inc.* . . . 3,325 29,127
----------
HEALTH CARE PROVIDERS & SERVICES - 5.4%
AMN Healthcare Services, Inc.*. . . . . 2,075 30,648
WebMD Corp.*. . . . . . . . . . . . . . 9,250 87,875
----------
118,523
----------
PHARMACEUTICALS - 6.2%
Pfizer, Inc.. . . . . . . . . . . . . . 1,375 37,359
Schering-Plough Corp. . . . . . . . . . 4,750 99,133
----------
136,492
----------
TOTAL HEALTH CARE . . . . . . . . . . . 284,142
----------
INDUSTRIALS - 6.8%
AIRLINES - 1.9%
Southwest Airlines Co.. . . . . . . . . 2,725 40,548
----------
COMMERCIAL SERVICES & SUPPLIES - 1.6%
The Dun & Bradstreet Corp.* . . . . . . 575 35,903
----------
MACHINERY - 1.7%
AGCO Corp.* . . . . . . . . . . . . . . 2,150 36,980
----------
ROAD & RAIL - 1.6%
CSX Corp. . . . . . . . . . . . . . . . 900 36,117
----------
TOTAL INDUSTRIALS . . . . . . . . . . . 149,548
----------
INFORMATION TECHNOLOGY - 8.6%
COMMUNICATIONS EQUIPMENT - 2.8%
Cisco Systems, Inc.*. . . . . . . . . . 3,600 62,208
----------
IT SERVICES - 2.5%
First Data Corp.. . . . . . . . . . . . 1,450 55,143
----------
The accompanying notes are an integral part of the financial statements.
7
Investment Portfolio - April 30, 2005 (unaudited)
SHARES/ VALUE
PRINCIPAL AMOUNT (NOTE 2)
------------------ ---------
INFORMATION TECHNOLOGY (continued)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.5%
Texas Instruments, Inc.. . . . . . . . . . . . . . . . . 2,200 $ 54,912
-----------
SOFTWARE - 0.8%
Synopsys, Inc.*. . . . . . . . . . . . . . . . . . . . . 1,025 16,851
-----------
TOTAL INFORMATION TECHNOLOGY . . . . . . . . . . . . . . 189,114
-----------
MATERIALS - 5.6%
CHEMICALS - 5.6%
Engelhard Corp.. . . . . . . . . . . . . . . . . . . . . 1,900 58,197
Minerals Technologies, Inc.. . . . . . . . . . . . . . . 975 63,687
-----------
TOTAL MATERIALS. . . . . . . . . . . . . . . . . . . . . 121,884
-----------
UTILITIES - 4.7%
ELECTRIC UTILITIES - 3.0%
Allegheny Energy, Inc.*. . . . . . . . . . . . . . . . . 2,725 66,599
-----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 1.7%
NRG Energy, Inc.*. . . . . . . . . . . . . . . . . . . . 1,175 36,542
-----------
TOTAL UTILITIES. . . . . . . . . . . . . . . . . . . . . 103,141
-----------
TOTAL COMMON STOCKS
(Identified Cost $1,779,832) . . . . . . . . . . . . . . 2,022,607
-----------
SHORT-TERM INVESTMENTS - 8.4%
Dreyfus Treasury Cash Management - Institutional Shares. 9,086 9,086
U.S. Treasury Bill, 6/16/2005. . . . . . . . . . . . . . $ 175,000 174,412
-----------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $183,495) . . . . . . . . . . . . . . . 183,498
-----------
TOTAL INVESTMENTS - 100.7%
(Identified Cost $1,963,327) . . . . . . . . . . . . . . 2,206,105
LIABILITIES, LESS OTHER ASSETS - (0.7%). . . . . . . . . (14,656)
-----------
NET ASSETS - 100%. . . . . . . . . . . . . . . . . . . . $ 2,191,449
===========
*Non-income producing security
The accompanying notes are an integral part of the financial statements.
8
Statement of Assets and Liabilities (unaudited)
April 30, 2005
ASSETS:
Investments, at value (identified cost $1,963,327) (Note 2) $2,206,105
Dividends receivable. . . . . . . . . . . . . . . . . . . . 717
Receivable from investment advisor (Note 3) . . . . . . . . 3,362
-----------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . 2,210,184
-----------
LIABILITIES:
Accrued fund accounting and transfer agent fees (Note 3). . 1,100
Accrued chief compliance officer services (Note 3). . . . . 600
Audit fees payable. . . . . . . . . . . . . . . . . . . . . 15,747
Accrued legal fees. . . . . . . . . . . . . . . . . . . . . 1,182
Other payables and accrued expenses . . . . . . . . . . . . 106
-----------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . 18,735
-----------
TOTAL NET ASSETS. . . . . . . . . . . . . . . . . . . . . . $2,191,449
===========
NET ASSETS CONSIST OF:
Capital stock . . . . . . . . . . . . . . . . . . . . . . . $ 1,391
Additional paid-in-capital. . . . . . . . . . . . . . . . . 1,896,637
Undistributed net investment loss . . . . . . . . . . . . . (816)
Accumulated net realized gain on investments. . . . . . . . 51,459
Net unrealized appreciation on investments. . . . . . . . . 242,778
-----------
TOTAL NET ASSETS. . . . . . . . . . . . . . . . . . . . . . $2,191,449
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE ($2,191,449/139,072 shares) . . . . . . . . $ 15.76
===========
The accompanying notes are an integral part of the financial statements.
9
Statement of Operations (unaudited)
For the Six Months Ended April 30, 2005
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . . . . . . . $ 8,379
Interest. . . . . . . . . . . . . . . . . . . . . . . 1,587
---------
Total Investment Income . . . . . . . . . . . . . . . 9,966
---------
EXPENSES:
Management fees (Note 3). . . . . . . . . . . . . . . 10,248
Directors' fees (Note 3). . . . . . . . . . . . . . . 3,352
Fund accounting and transfer agent fees (Note 3). . . 2,435
Chief compliance officer services (Note 3). . . . . . 2,343
Audit fees. . . . . . . . . . . . . . . . . . . . . . 12,637
Custodian fees. . . . . . . . . . . . . . . . . . . . 1,537
Miscellaneous . . . . . . . . . . . . . . . . . . . . 2,546
---------
Total Expenses. . . . . . . . . . . . . . . . . . . . 35,098
Less reduction of expenses (Note 3) . . . . . . . . . (24,316)
---------
Net Expenses. . . . . . . . . . . . . . . . . . . . . 10,782
---------
NET INVESTMENT LOSS . . . . . . . . . . . . . . . . . (816)
---------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments. . . . . . . . . . . 51,465
Net change in unrealized appreciation on investments. 56,026
---------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS . . . . . . . . . . . . . . . . . . . . . 107,491
---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS. . . . . . . . . . . . . . . . . . . . . . $106,675
=========
The accompanying notes are an integral part of the financial statements.
10
Statements of Changes in Net Assets
FOR THE SIX
MONTHS ENDED FOR THE
4/30/05 YEAR ENDED
(UNAUDITED) 10/31/04
-------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment loss. . . . . . . . . . . . . . . . . . $ (816) $ (895)
Net realized gain on investments . . . . . . . . . . . 51,465 159,977
Net change in unrealized appreciation on investments . 56,026 59,673
-------------- ------------
Net increase from operations . . . . . . . . . . . . . 106,675 218,755
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 8):
From net investment income . . . . . . . . . . . . . . - (638)
From net realized gain on investments. . . . . . . . . (100,188) -
-------------- ------------
Total distributions to shareholders. . . . . . . . . . (100,188) (638)
-------------- ------------
CAPITAL STOCK ISSUED AND REPURCHASED:
Net increase from capital share transactions (Note 5). 415,570 345,056
-------------- ------------
Net increase in net assets . . . . . . . . . . . . . . 422,057 563,173
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . 1,769,392 1,206,219
-------------- ------------
END OF PERIOD (including undistributed net investment
loss of $816 and $0, respectively) . . . . . . . . . . $ 2,191,449 $ 1,769,392
============== ============
The accompanying notes are an integral part of the financial statements.
11
Financial Highlights
FOR THE SIX FOR THE
MONTHS ENDED PERIOD
4/30/05 FOR THE YEARS ENDED 7/10/02 1 TO
(UNAUDITED) 10/31/04 10/31/03 10/31/02
-------------- -------------- ------------- ------------
PER SHARE DATA (FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD):
NET ASSET VALUE - BEGINNING OF PERIOD . . . . . . . . . $ 15.63 $ 13.42 $ 11.42 $ 11.51
-------------- -------------- ------------- --------
Income (loss) from investment operations:
Net investment income (loss). . . . . . . . . . . . . . (0.01) (0.01) 0.01 0.03
Net realized and unrealized gain (loss) on investments. 0.97 2.23 2.02 (0.12)
-------------- -------------- ------------- --------
Total from investment operations. . . . . . . . . . . . 0.96 2.22 2.03 (0.09)
-------------- -------------- ------------- --------
Less distributions to shareholders:
From net investment income. . . . . . . . . . . . . . . - (0.01) (0.03) -
From net realized gain on investments . . . . . . . . . (0.83) - - -
-------------- -------------- ------------- --------
Total distributions to shareholders . . . . . . . . . . (0.83) (0.01) (0.03) -
-------------- -------------- ------------- --------
NET ASSET VALUE - END OF PERIOD . . . . . . . . . . . . $ 15.76 $ 15.63 $ 13.42 $ 11.42
============== ============== ============= ========
Total return2 . . . . . . . . . . . . . . . . . . . . . 6.07% 16.52% 17.82% (0.78%)
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL DATA:
Expenses* . . . . . . . . . . . . . . . . . . . . . . . 1.05%3 1.05% 1.05% 1.05%3
Net investment income (loss). . . . . . . . . . . . . . (0.08%)3 (0.06%) 0.09% 0.78%3
Portfolio turnover. . . . . . . . . . . . . . . . . . . 23% 60% 58% 30%
NET ASSETS - END OF PERIOD (000's omitted). . . . . . . $ 2,191 $ 1,769 $ 1,206 $ 518
============== ============== ============= ========
*The investment advisor did not impose its management fee and paid a portion of
the Series' expenses. If these expenses had been incurred by the Series, the
expense ratio (to average net assets) would have been increased as follows:
2.37%3 2.85% 11.55% 31.99%3
1Commencement of operations.
2Represents aggregate total return for the period indicated, and assumes
reinvestment of all distributions. Total return would have been lower had
certain expenses not been waived or reimbursed during the period. Periods less
than one year are not annualized.
3Annualized.
The accompanying notes are an integral part of the financial statements.
12
Notes to Financial Statements (unaudited)
1. ORGANIZATION
Equity Series (the "Series") is a no-load, non-diversified series of Exeter
Fund, Inc. (the "Fund"). The Fund is organized in Maryland and is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company.
The Series' investment objective is to provide long-term growth of capital,
primarily through investments in U.S. common stocks.
Shares of the Series are offered to investors and employees of Manning & Napier
Advisors, Inc. (the "Advisor"), doing business as Exeter Asset Management, and
its affiliates. The total authorized capital stock of the Fund consists of 1.7
billion shares of common stock each having a par value of $0.01. As of April 30,
2005, 1.16 billion shares have been designated in total among 21 series, of
which 75 million have been designated as Equity Series common stock.
2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Portfolio securities, including domestic equities, foreign equities and options,
listed on an exchange other than the NASDAQ National Market System are valued at
the latest quoted sales price of the exchange on which the security is primarily
traded. Securities not traded on valuation date or securities not listed on an
exchange are valued at the latest quoted bid price provided by the Fund's
pricing service. Securities listed on the NASDAQ National Market System are
valued in accordance with the NASDAQ Official Closing Price.
Securities for which representative valuations or prices are not available from
the Fund's pricing service may be valued at fair value. If trading or events
occurring after the close of the principal market in which securities are traded
are expected to materially affect the value of those securities, then they may
be valued at their fair value, taking this trading or these events into account.
Fair value is determined in good faith by the Advisor under procedures approved
by and under the general supervision and responsibility of the Fund's Board of
Directors.
Short-term investments that mature in sixty days or less are valued at amortized
cost, which approximates market value. Investments in open-end investment
companies are valued at their net asset value per share on valuation date.
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES
Security transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date, except that if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as soon as the
Fund is informed of the ex-dividend date. Non-cash dividends, if any, are
recorded at the fair market value of the securities received. Interest income
and expenses are recorded on an accrual basis.
Most expenses of the Fund can be attributed to a specific series. Expenses which
cannot be directly attributed are apportioned among the series in the Fund in
such a manner as deemed equitable by the Fund's Directors, taking into
consideration, among other things, the nature and type of expense.
The Series uses the identified cost method for determining realized gain or loss
on investments for both financial statement and federal income tax reporting
purposes.
FEDERAL TAXES
The Series' policy is to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies. The Series is not subject to
federal income or excise tax to the
13
Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
FEDERAL TAXES (continued)
extent that the Series distributes to shareholders each year its taxable income,
including any net realized gains on investments, in accordance with requirements
of the Internal Revenue Code. Accordingly, no provision for federal income tax
or excise tax has been made in the financial statements.
DISTRIBUTIONS OF INCOME AND GAINS
Distributions to shareholders of net investment income and net realized gains
are made annually. An additional distribution may be necessary to avoid taxation
of the Series. Distributions are recorded on the ex-dividend date.
OTHER
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
3. TRANSACTIONS WITH AFFILIATES
The Fund has an Investment Advisory Agreement (the "Agreement") with the
Advisor, for which the Series pays a fee, computed daily and payable monthly, at
an annual rate of 1.00% of the Series' average daily net assets.
Under the Agreement, personnel of the Advisor provide the Series with advice and
assistance in the choice of investments and the execution of securities
transactions, and otherwise maintain the Series' organization. The Advisor also
provides the Fund with necessary office space and fund administration services.
The salaries of all officers of the Fund (except a percentage of the Fund's
Chief Compliance Officer's salary, which is paid by the Fund, and the Special
Assistant Secretary's salary, which is paid by BISYS), and of all Directors who
are "affiliated persons" of the Fund, or of the Advisor, and all personnel of
the Fund, or of the Advisor, performing services relating to research,
statistical and investment activities, are paid by the Advisor. Each
"non-affiliated" Director receives an annual stipend, which is allocated among
all the active series of the Fund. In addition, these Directors also receive a
per meeting fee for each active series of the Fund plus a fee for each committee
meeting attended.
The Advisor has contractually agreed, until at least February 28, 2006, to waive
its fee and, if necessary, pay other operating expenses of the Series in order
to maintain total expenses for the Series at no more than 1.05% of average daily
net assets each year. Accordingly, the Advisor did not impose its fee of $10,248
and assumed expenses amounting to $14,068 for the six months ended April 30,
2005, which is reflected as a reduction of expenses on the Statement of
Operations.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate
of the Advisor, acts as distributor for the Fund's shares. The services of
Manning & Napier Investor Services, Inc. are provided at no additional cost to
the Series.
Effective November 1, 2003, the Master Services Agreement between the Fund and
the Advisor, which covers fund accounting services and transfer agent services,
was amended. Under the amended agreement, for providing these services, the
Fund pays the Advisor an annual fee of 0.15% of the Fund's average daily net
assets up to $900 million, 0.11% for the Fund's average daily net
14
Notes to Financial Statements (unaudited)
3. TRANSACTIONS WITH AFFILIATES (continued)
assets between $900 million and $1.5 billion, and 0.07% for the Fund's average
daily net assets over $1.5 billion. These fee rates are scheduled to be reduced
each year through 2007. Additionally, certain transaction and account-based fees
and out-of-pocket expenses, including charges for reporting relating to the
Fund's Compliance Program, are charged. Expenses not directly attributable to a
series are allocated based on each series' relative net assets or number of
accounts, depending on the expense. The Advisor has an agreement with BISYS
Fund Services Ohio, Inc. ("BISYS") under which BISYS serves as sub-accounting
services and sub-transfer agent.
4. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2005, purchases and sales of securities,
other than United States Government securities and short-term securities, were
$694,723 and $431,922, respectively. There were no purchases or sales of United
States Government securities.
5. CAPITAL STOCK TRANSACTIONS
Transactions in shares of Equity Series were:
FOR THE SIX MONTHS FOR THE YEAR
ENDED 4/30/05 ENDED 10/31/04
------------------------------------- ------------------
SHARES AMOUNT SHARES AMOUNT
------------------- ---------------- ------- ---------
Sold. . . . 21,866 $ 352,584 24,251 $358,646
Reinvested. 6,301 100,188 45 638
Repurchased (2,332) (37,202) (959) (14,228)
------------------- ---------------- ------- ---------
Total . . . 25,835 $ 415,570 23,337 $345,056
=================== ================ ======= =========
At April 30, 2005, the retirement plan of the advisor and its affiliates owned
120,873 shares of the Series (86.9% of shares outstanding) valued at $1,904,958.
6. FINANCIAL INSTRUMENTS
The Series may trade in financial instruments with off-balance sheet risk in the
normal course of its investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. No such investments were held by
the Series on April 30, 2005.
7. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in
securities of domestic companies and the United States Government. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of foreign companies and foreign governments
and their markets may be less liquid and their prices more volatile than those
of comparable domestic companies and the United States Government. No such
investments were held by the Series on April 30, 2005.
15
Notes to Financial Statements (unaudited)
8. FEDERAL INCOME TAX INFORMATION
The amount and characterization of certain income and capital gains to be
distributed are determined in accordance with federal income tax regulations,
which may differ from accounting principles generally accepted in the United
States of America. The Series may periodically make reclassifications among its
capital accounts to reflect income and gains available for distribution (or
available capital loss carryovers) under income tax regulations, without
impacting the Series' net asset value. Any such reclassifications are not
reflected in the financial highlights.
The final determination of the tax character of current year distributions will
be made at the conclusion of the fiscal year. The tax character of
distributions paid for the year ended October 31, 2004 were as follows:
Ordinary income $638
At April 30, 2005, the identified cost of investments for federal income tax
purposes, the resulting gross unrealized appreciation and depreciation, and the
net unrealized appreciation were as follows:
Cost for federal income tax purposes $1,964,997
Unrealized appreciation. . . . . . . $ 276,087
Unrealized depreciation. . . . . . . (34,979)
-----------
Net unrealized appreciation. . . . . $ 241,108
===========
16
(This page intentionally left blank)
17
Literature Requests (unaudited)
PROXY VOTING POLICIES AND PROCEDURES
- --------------------------------------------------------------------------------
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available, without charge,
upon request:
By phone 1-800-466-3863
On the Securities and Exchange
Commission's (SEC) web site http://www.sec.gov
PROXY VOTING RECORD
- --------------------------------------------------------------------------------
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30th is available,
without charge, upon request:
By phone 1-800-466-3863
On the SEC's web site http://www.sec.gov
QUARTERLY PORTFOLIO HOLDINGS
- --------------------------------------------------------------------------------
The Series' complete schedule of portfolio holdings for the 1st and 3rd quarters
of each fiscal year are provided on Form N-Q, and is available, without charge,
upon request:
By phone 1-800-466-3863
On the SEC's web site http:\\www.sec.gov
The Series' Form N-Q may be reviewed and copied at the SEC's Public Reference
Room in Washington, D.C. Information on the operation of the Public Reference
Room may be obtained by calling 1-800-SEC-0330.
PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION (SAI)
- --------------------------------------------------------------------------------
The prospectus and SAI provide additional information about each Series,
including charges, expenses and risks. These documents are available, without
charge, upon request:
By phone 1-800-466-3863
On the SEC's web site http://www.sec.gov
On the Advisor's web site
http://www.manningnapieradvisors.com/www/exeter_fund.asp
ADDITIONAL INFORMATION AVAILABLE AT
WWW.MANNINGNAPIERADVISORS.COM/WWW/EXETER_FUND.ASP
- --------------------------------------------------------------------------------
1. Fund Holdings - month-end
2. Fund Holdings - quarter-end
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
18
Exeter Fund, Inc.
Semi-Annual Report
April 30, 2005
Tax Managed Series
Renewal of Investment Advisory Agreement (unaudited)
At the Exeter Fund, Inc. (the "Fund") Board of Director's annual in person
meeting, held on November 18, 2004, the Investment Advisory Agreement (the
"Agreement") between the Fund and Manning & Napier Advisor, Inc. (the "Advisor")
was reviewed by the Board for renewal. In connection with the decision whether
to renew the Agreement, a variety of material was prepared for and reviewed by
the Board. In addition, at the meeting of the Board, representatives of the
Advisor presented additional oral and written information to help the Board
evaluate the Advisor's performance under the Agreement over the previous year.
The Board then deliberated the renewal of the Agreement in light of the various
material provided prior to and at the meeting.
In connection with their review and deliberations, the Board considered the
following factors and reached a conclusion with respect to such factors.
- - The Board considered the services provided by the Advisor under the
Agreement including, among others: deciding what securities to purchase and sell
for each Series; arranging for the purchase and sale of such securities by
placing orders with broker-dealers; administering of the affairs of the Fund
(including the books and records of the Fund not maintained by third party
service providers such as custodian or sub-transfer agent); arranging for the
insurance coverage for the Fund; and supervising the preparation of tax returns,
preparation of SEC filings (including registration statements) and reports to
shareholders for the Fund. The Board discussed the quality of these services
with representatives from the Advisor and concluded that the Advisor was
performing its services to the Fund required under the Agreement in a reasonable
manner.
- - The Board considered the investment performance of the various Series of
the Fund. The investment performance for each Series was reviewed on a
cumulative basis since inception and on a one year basis. In addition,
annualized peformance for the following time periods was considered: inception,
three year, five year, ten year, and current market cycle. Market cycle includes
periods of both rising and falling markets. Returns for established benchmark
indices for each Series were provided for each time period. In addition, the
Board considered at the meeting (and considers on a quarterly basis) a peer
group performance analysis consisting of Morningstar universes of mutual funds
with similar investment objectives. The Board discussed the performance with
representatives from the Advisor and concluded that the investment performance
of each of the Fund's Series was reasonable based on the Fund's actual
performance and comparative performance, especially performance over the current
market cycle.
- - The Board considered the costs of the Advisor's services and the profits
of the Advisor as they relate to the Advisor's services to the Fund under the
Agreement. In reviewing the Advisor's costs and profits, the Board discussed
the Advisor's revenues generated from the Fund (on both an actual and adjusted
basis) and its expenses associated with providing the services under the
Agreement. In addition, the Board reviewed the Advisor's expenses associated
with Fund activities outside of the Agreement (such as expense reimbursements
pursuant to expense caps and payments made by the Advisor to third party
platforms on which shares of the Fund are available for purchase). It was noted
by representatives of the Advisor that 11 of the 15 active Series of the Fund
are currently experiencing expenses above the capped expense ratios. After
discussing the above costs and profits, the Board concluded that the Advisor's
profitability relating to its services provided under the Agreement is
reasonable.
- - The Board considered the fees and expenses of the various Series of the
Fund. The Advisor presented the advisory fees and total expenses for each
Series, including the advisory fee adjusted for any expense reimbursements
(either contractually or voluntarily) paid by the Advisor. The advisory fees
and expense ratios of each Series were compared to an average (on
1
Renewal of Investment Advisory Agreement (unaudited)
both a mean and median basis) of similar funds as disclosed on the Morningstar
database. Representatives of the Advisor discussed with the Board the levels of
its advisory fee for the Series of the Fund and as compared to the median and
mean advisory fees for similar funds as listed on Morningstar. Expense ratios
for every Series are currently below the median and mean for similar funds as
listed on Morningstar. Based on their review of the information provided, the
Board concluded that the fees and expenses of each Series of the Fund were
reasonable on a comparative basis.
- - The Board also considered the other benefits the Advisor derives from its
relationship with the Fund. Such other benefits include certain research
products provided by soft dollars. Given the level of soft dollar transactions
involving the Fund, the Board concluded that these additional benefits to the
Advisor were reasonable.
- - In addition to the factors described above, the Board considered the
Advisor's personnel, the Advisor's investment strategies, the Advisor's policies
and procedures relating to compliance with personal securities transactions, the
Advisor's reputation, expertise and resources in domestic and foreign financial
markets. The Board concluded that these factors support the conclusion that the
Advisor performs its services in a reasonable manner.
- - The Board did not consider economies of scale at this time because of the
multiple uses of the Fund (for the Advisor's discretionary investment account
clients in addition to direct investors), the current profitability of the
Advisor's services to the Fund under the Agreement and the overall size of the
Fund complex.
Based on the Board's conclusions regarding the factors described above, the
Board, including a majority of Directors that are "not interested" as defined in
the Investment Company Act of 1940, approved the renewal of the Agreement for
another year. In the course of their deliberations, the Directors did not
identify any particular information that was all important or controlling.
2
Performance Update as of April 30, 2005 (unaudited)
Average Annual Total Returns
As of April 30, 2005
--------------------------------------------------
One Five Since
Year Year Inception1
----------------------------- ------ -----------
Exeter Fund, Inc. - Tax Managed Series
Returns Before Taxes2 . . . . . . . . . . . . . . . . . . . . 9.34% 3.16% 10.76%
Returns After Taxes on Distributions3 . . . . . . . . . . . . 8.47% 2.88% 10.46%
Returns After Taxes on Distributions and Sale of Fund Shares3 7.25% 2.64% 9.49%
Standard & Poor's (S&P) 500 Total Return Index4 . . . . . . . 6.33% -2.94% 9.27%
The following graph compares the value of a $10,000 investment in the Exeter
Fund, Inc. - Tax Managed Series (returns before taxes) from its inception1
(11/1/95) to present (4/30/05) to the S&P 500 Total Return Index.
Data for line graph to follow:
Exeter Fund, Inc. S&P 500
Date Tax Managed Series Total Return Index
11/1/95. $ 10,000 $ 10,000
10/31/96 11,630 12,408
10/31/97 15,200 16,392
10/31/98 14,855 19,996
10/31/99 18,129 25,127
10/31/00 23,863 26,656
10/31/01 20,480 20,022
10/31/02 18,537 16,999
10/31/03 21,367 20,532
10/31/04 24,990 22,464
4/30/05. 26,394 23,200
1Performance numbers for the Series and Index are calculated from November 1,
1995, the Series' inception date.
2The Series' performance does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of shares. The
Series' performance is historical and may not be indicative of future results.
3Returns after taxes on distributions assume that an investor owned the Series
during the entire period and paid taxes on the Series' distributions. Returns
after taxes on distributions and sale of series shares assume that an investor
paid taxes on the Series' distributions and sold all shares at the end of each
period. After-tax returns reflect the historical highest individual federal
marginal income tax rates and do not reflect state and local taxes. Actual
after-tax returns depend on an investor's tax situation and may differ from
those shown. After-tax returns reflect past tax effects and are not indicative
of future tax effects. After-tax returns are not relevant to those investing
through 401(k) plans, IRAs or other tax-deferred arrangements.
4The S&P 500 Total Return Index is an unmanaged capitalization-weighted measure
of 500 widely held common stocks listed on the New York Stock Exchange, American
Stock Exchange and the Over-the-Counter Market. The Index returns assume daily
reinvestment of dividends and, unlike Series returns, do not reflect any fees or
expenses.
3
Shareholder Expense Example (unaudited)
As a shareholder of the Series, you may incur two types of costs: (1)
transaction costs, including potential wire charges on redemptions and (2)
ongoing costs, including management fees and other Series expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Series and to compare these costs with the ongoing costs of
investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (November 1, 2004 to April 30, 2005).
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Series' actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Series' actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid
during the period. You may use this information to compare the ongoing costs of
investing in the Series 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 costs, such as potential
wire charges on redemptions. Therefore, the second line of the table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
11/1/04 4/30/05 11/1/04-4/30/05
-------------- -------------- ----------------
Actual. . . . . . . . . . . $ 1,000.00 $ 1,056.20 $ 6.12
Hypothetical
(5% return before expenses) $ 1,000.00 $ 1,018.84 $ 6.01
*Expenses are equal to the Series' annualized expense ratio (for the six-month
period) of 1.20%, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period). Expenses are based
on the most recent fiscal half year; therefore, the Series' expense ratio may
differ from the expense ratio based on one-year data in the financial
highlights. The Series' total return would have been lower had certain expenses
not been waived during the period.
4
Portfolio Composition - As of April 30, 2005 (unaudited)
Data for pie chart to follow:
Sector Allocation*
Consumer Discretionary . . . . . . . . . . . . . . . . . . . . . 16.1%
Consumer Staples . . . . . . . . . . . . . . . . . . . . . . . . 14.3%
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.6%
Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.8%
Health Care. . . . . . . . . . . . . . . . . . . . . . . . . . . 13.8%
Industrials. . . . . . . . . . . . . . . . . . . . . . . . . . . 7.9%
Information Technology . . . . . . . . . . . . . . . . . . . . . 6.5%
Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3%
Telecommunication Services . . . . . . . . . . . . . . . . . . . 3.8%
Utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.4%
Cash, short-term investments, and liabilities, less other assets 7.5%
*As a percentage of net assets.
5
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
SHARES (NOTE 2)
--------- ---------
COMMON STOCKS - 92.5%
CONSUMER DISCRETIONARY - 16.1%
DIVERSIFIED CONSUMER SERVICES - 2.2%
Weight Watchers International, Inc.* . . . . 3,325 $138,819
----------
HOTELS, RESTAURANTS & LEISURE - 1.4%
Carnival Corp. . . . . . . . . . . . . . . . 1,850 90,428
----------
MEDIA - 9.8%
Cablevision Systems Corp. - Class A* . . . . 6,800 176,460
The E.W. Scripps Co. - Class A . . . . . . . 2,225 113,319
Pearson plc (United Kingdom) (Note 7). . . . 9,900 119,971
Time Warner, Inc.* . . . . . . . . . . . . . 13,350 224,414
----------
634,164
----------
SPECIALTY RETAIL - 2.7%
Office Depot, Inc.*. . . . . . . . . . . . . 3,525 69,019
RadioShack Corp. . . . . . . . . . . . . . . 500 12,485
Staples, Inc.. . . . . . . . . . . . . . . . 4,950 94,397
----------
175,901
----------
TOTAL CONSUMER DISCRETIONARY . . . . . . . . 1,039,312
----------
CONSUMER STAPLES - 14.3%
BEVERAGES - 1.3%
The Coca-Cola Co.. . . . . . . . . . . . . . 2,025 87,966
----------
FOOD & STAPLES RETAILING - 2.5%
Carrefour S.A. (France) (Note 7) . . . . . . 1,675 80,840
Wal-Mart Stores, Inc.. . . . . . . . . . . . 1,675 78,959
----------
159,799
----------
FOOD PRODUCTS - 8.8%
Nestle S.A. (Switzerland) (Note 7) . . . . . 1,175 307,710
Unilever plc - ADR (United Kingdom) (Note 7) 6,850 262,766
----------
570,476
----------
PERSONAL PRODUCTS - 1.7%
The Estee Lauder Companies, Inc. - Class A . 2,875 110,429
----------
TOTAL CONSUMER STAPLES . . . . . . . . . . . 928,670
----------
ENERGY - 10.6%
ENERGY EQUIPMENT & SERVICES - 8.5%
Baker Hughes, Inc. . . . . . . . . . . . . . 1,875 82,725
Cooper Cameron Corp.*. . . . . . . . . . . . 825 45,325
National-Oilwell Varco, Inc.*. . . . . . . . 829 32,944
Schlumberger Ltd.. . . . . . . . . . . . . . 3,000 205,230
Transocean, Inc.*. . . . . . . . . . . . . . 1,375 63,759
Weatherford International Ltd.*. . . . . . . 2,300 119,945
----------
549,928
----------
The accompanying notes are an integral part of the financial statements.
6
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
SHARES (NOTE 2)
------- ---------
ENERGY (continued)
OIL, GAS & CONSUMABLE FUELS - 2.1%
Amerada Hess Corp.. . . . . . . . . . . . . . . . . . . 1,425 $133,451
----------
TOTAL ENERGY. . . . . . . . . . . . . . . . . . . . . . 683,379
----------
FINANCIALS - 8.8%
CAPITAL MARKETS - 3.8%
The Bank of New York Co., Inc.. . . . . . . . . . . . . 4,675 130,620
SEI Investments Co. . . . . . . . . . . . . . . . . . . 3,425 112,374
----------
242,994
----------
COMMERCIAL BANKS - 3.9%
PNC Financial Services Group, Inc.. . . . . . . . . . . 1,550 82,506
U.S. Bancorp. . . . . . . . . . . . . . . . . . . . . . 2,950 82,305
Wachovia Corp.. . . . . . . . . . . . . . . . . . . . . 1,775 90,845
----------
255,656
----------
DIVERSIFIED FINANCIAL SERVICES - 1.1%
Principal Financial Group, Inc. . . . . . . . . . . . . 1,825 71,321
----------
TOTAL FINANCIALS. . . . . . . . . . . . . . . . . . . . 569,971
----------
HEALTH CARE - 13.8%
BIOTECHNOLOGY - 1.1%
Millennium Pharmaceuticals, Inc.* . . . . . . . . . . . 8,025 70,299
----------
HEALTH CARE PROVIDERS & SERVICES - 3.0%
WebMD Corp.*. . . . . . . . . . . . . . . . . . . . . . 20,775 197,363
----------
PHARMACEUTICALS - 9.7%
GlaxoSmithKline plc - ADR (United Kingdom) (Note 7) . . 3,400 171,870
Novartis AG - ADR (Switzerland) (Note 7). . . . . . . . 3,350 163,245
Pfizer, Inc.. . . . . . . . . . . . . . . . . . . . . . 2,950 80,152
Schering-Plough Corp. . . . . . . . . . . . . . . . . . 10,125 211,309
----------
626,576
----------
TOTAL HEALTH CARE . . . . . . . . . . . . . . . . . . . 894,238
----------
INDUSTRIALS - 7.9%
AEROSPACE & DEFENSE - 1.2%
Empresa Brasileira de Aeronautica S.A. (Embraer) - ADR
(Brazil) (Note 7) . . . . . . . . . . . . . . . . . . . 2,600 74,984
----------
AIRLINES - 1.7%
Southwest Airlines Co.. . . . . . . . . . . . . . . . . 7,475 111,228
----------
COMMERCIAL SERVICES & SUPPLIES - 1.3%
The Dun & Bradstreet Corp.* . . . . . . . . . . . . . . 1,400 87,416
----------
The accompanying notes are an integral part of the financial statements.
7
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
SHARES (NOTE 2)
------- ---------
INDUSTRIALS (continued)
ELECTRICAL EQUIPMENT - 0.8%
Gamesa Corporacion Tecnologica S.A. (Spain) (Note 7) 3,825 $ 49,179
----------
MACHINERY - 1.2%
AGCO Corp.*. . . . . . . . . . . . . . . . . . . . . 4,550 78,260
----------
ROAD & RAIL - 1.7%
CSX Corp.. . . . . . . . . . . . . . . . . . . . . . 2,825 113,367
----------
TOTAL INDUSTRIALS. . . . . . . . . . . . . . . . . . 514,434
----------
INFORMATION TECHNOLOGY - 6.5%
COMMUNICATIONS EQUIPMENT - 2.5%
Cisco Systems, Inc.* . . . . . . . . . . . . . . . . 9,300 160,704
----------
IT SERVICES - 1.6%
First Data Corp. . . . . . . . . . . . . . . . . . . 2,700 102,681
----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.5%
Texas Instruments, Inc.. . . . . . . . . . . . . . . 4,000 99,840
----------
SOFTWARE - 0.9%
McAfee, Inc.*. . . . . . . . . . . . . . . . . . . . 1,125 23,524
Synopsys, Inc.*. . . . . . . . . . . . . . . . . . . 2,200 36,168
----------
59,692
----------
TOTAL INFORMATION TECHNOLOGY . . . . . . . . . . . . 422,917
----------
MATERIALS - 6.3%
CHEMICALS - 5.8%
Engelhard Corp.. . . . . . . . . . . . . . . . . . . 5,525 169,231
Lonza Group AG (Switzerland) (Note 7). . . . . . . . 1,475 88,423
Minerals Technologies, Inc.. . . . . . . . . . . . . 1,800 117,576
----------
375,230
----------
PAPER & FOREST PRODUCTS - 0.5%
Aracruz Celulose S.A. - ADR (Brazil) (Note 7). . . . 1,050 32,235
----------
TOTAL MATERIALS. . . . . . . . . . . . . . . . . . . 407,465
----------
TELECOMMUNICATION SERVICES - 3.8%
WIRELESS TELECOMMUNICATION SERVICES - 3.8%
Vodafone Group plc - ADR (United Kingdom) (Note 7) . 9,325 243,755
----------
UTILITIES - 4.4%
ELECTRIC UTILITIES - 2.8%
Allegheny Energy, Inc.*. . . . . . . . . . . . . . . 6,750 164,970
American Electric Power Co., Inc.. . . . . . . . . . 400 14,088
----------
179,058
----------
The accompanying notes are an integral part of the financial statements.
8
Investment Portfolio - April 30, 2005 (unaudited)
SHARES/ VALUE
PRINCIPAL AMOUNT (NOTE 2)
------------------ ---------
UTILITIES (continued)
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 1.6%
NRG Energy, Inc.*. . . . . . . . . . . . . . . . . . . . 3,300 $102,630
-----------
TOTAL UTILITIES. . . . . . . . . . . . . . . . . . . . . 281,688
-----------
TOTAL COMMON STOCKS
(Identified Cost $5,231,830) . . . . . . . . . . . . . . 5,985,829
-----------
SHORT-TERM INVESTMENTS - 7.7%
Dreyfus Treasury Cash Management - Institutional Shares. 247,857 247,857
Federal Home Loan Bank Discount Note, 6/6/2005 . . . . . $ 250,000 249,320
-----------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $497,177) . . . . . . . . . . . . . . . 497,177
-----------
TOTAL INVESTMENTS - 100.2%
(Identified Cost $5,729,007) . . . . . . . . . . . . . . 6,483,006
LIABILITIES, LESS OTHER ASSETS - (0.2%). . . . . . . . . (12,757)
-----------
NET ASSETS - 100%. . . . . . . . . . . . . . . . . . . . $ 6,470,249
===========
*Non-income producing security
ADR - American Depository Receipt
The Series' portfolio holds, as a percentage of net assets, greater than 10% in
the following country: United Kingdom - 12.3%.
The accompanying notes are an integral part of the financial statements.
9
Statement of Assets and Liabilities (unaudited)
April 30, 2005
ASSETS:
Investments, at value (identified cost $5,729,007) (Note 2). . $6,483,006
Dividends receivable . . . . . . . . . . . . . . . . . . . . . 4,694
Foreign tax reclaims receivable. . . . . . . . . . . . . . . . 2,905
Receivable for fund shares sold. . . . . . . . . . . . . . . . 450
----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . 6,491,055
----------
LIABILITIES:
Accrued management fees (Note 3) . . . . . . . . . . . . . . . 675
Accrued fund accounting and transfer agent fees (Note 3) . . . 2,051
Accrued chief compliance officer services (Note 3) . . . . . . 600
Audit fees payable . . . . . . . . . . . . . . . . . . . . . . 15,830
Other payables and accrued expenses. . . . . . . . . . . . . . 1,650
----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . 20,806
----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . $6,470,249
==========
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . $ 2,750
Additional paid-in-capital . . . . . . . . . . . . . . . . . . 5,351,628
Undistributed net investment income. . . . . . . . . . . . . . 10,906
Accumulated net realized gain on investments and other assets
and liabilities. . . . . . . . . . . . . . . . . . . . . . . . 350,853
Net unrealized appreciation on investments and other assets
and liabilities. . . . . . . . . . . . . . . . . . . . . . . . 754,112
----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . $6,470,249
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE - CLASS A ($6,470,249/275,051 shares). . . . . $ 23.52
==========
The accompanying notes are an integral part of the financial statements.
10
Statement of Operations (unaudited)
For the Six Months Ended April 30, 2005
INVESTMENT INCOME:
Dividends (net of foreign tax withheld, $2,970). . . $ 48,787
Interest . . . . . . . . . . . . . . . . . . . . . . 3,780
---------
Total Investment Income. . . . . . . . . . . . . . . 52,567
---------
EXPENSES:
Management fees (Note 3) . . . . . . . . . . . . . . 33,446
Fund accounting and transfer agent fees (Note 3) . . 6,263
Directors' fees (Note 3) . . . . . . . . . . . . . . 3,352
Chief compliance officer services (Note 3) . . . . . 2,343
Audit fees . . . . . . . . . . . . . . . . . . . . . 12,704
Custodian fees . . . . . . . . . . . . . . . . . . . 1,597
Miscellaneous. . . . . . . . . . . . . . . . . . . . 5,938
---------
Total Expenses . . . . . . . . . . . . . . . . . . . 65,643
Less reduction of expenses (Note 3). . . . . . . . . (25,463)
---------
Net Expenses . . . . . . . . . . . . . . . . . . . . 40,180
---------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . 12,387
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on -
Investments. . . . . . . . . . . . . . . . . . . . . 353,498
Foreign currency and other assets and liabilities. . (53)
---------
353,445
---------
Net change in unrealized appreciation on -
Investments. . . . . . . . . . . . . . . . . . . . . (3,199)
Foreign currency and other assets and liabilities. . 26
---------
(3,173)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS. . . . . . . . . . . . . . . . . . . . . 350,272
---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS . . . . . . . . . . . . . . . . . . . . . $362,659
=========
The accompanying notes are an integral part of the financial statements.
11
Statements of Changes in Net Assets
FOR THE SIX
MONTHS ENDED FOR THE
4/30/05 YEAR ENDED
(UNAUDITED) 10/31/04
-------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . $ 12,387 $ 6,157
Net realized gain on investments . . . . . . . . . . . 353,445 501,209
Net change in unrealized appreciation on investments . (3,173) 364,736
-------------- ------------
Net increase from operations . . . . . . . . . . . . . 362,659 872,102
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 8):
From net investment income . . . . . . . . . . . . . . (4,007) (11,932)
From net realized gain on investments. . . . . . . . . (351,018) -
-------------- ------------
Total distributions to shareholders. . . . . . . . . . (355,025) (11,932)
-------------- ------------
CAPITAL STOCK ISSUED AND
REPURCHASED:
Net increase from capital share transactions
(Note 5) . . . . . . . . . . . . . . . . . . . . . . . 258,103 469,643
-------------- ------------
Net increase in net assets . . . . . . . . . . . . . . 265,737 1,329,813
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . 6,204,512 4,874,699
-------------- ------------
END OF PERIOD (including undistributed net investment
income of $10,906 and $2,526, respectively). . . . . . $ 6,470,249 $ 6,204,512
============== ============
The accompanying notes are an integral part of the financial statements.
12
Financial Highlights
FOR THE SIX
MONTHS ENDED
4/30/05 FOR THE YEARS ENDED
(UNAUDITED) 10/31/04 10/31/03 10/31/02 10/31/01 10/31/00
-------------- ---------------- ---------- ---------- ---------- -----------
PER SHARE DATA (FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD):
NET ASSET VALUE - BEGINNING OF PERIOD . . . $ 23.51 $ 20.15 $ 17.59 $ 19.53 $ 22.83 $17.42
-------------- ---------------- ---------- ---------- ---------- -------
Income (loss) from investment operations:
Net investment income . . . . . . . . . . . 0.05 0.03 0.05 0.10 0.11 0.07
Net realized and unrealized gain (loss) on
investments . . . . . . . . . . . . . . . . 1.29 3.38 2.62 (1.94) (3.34) 5.43
-------------- ---------------- ---------- ---------- ---------- -------
Total from investment operations. . . . . . 1.34 3.41 2.67 (1.84) (3.23) 5.50
-------------- ---------------- ---------- ---------- ---------- -------
Less distributions to shareholders:
From net investment income. . . . . . . . . (0.02) (0.05) (0.11) (0.10) (0.07) (0.09)
From net realized gain on investments . . . (1.31) - - - - -
-------------- ---------------- ---------- ---------- ---------- -------
Total distributions to shareholders . . . . (1.33) (0.05) (0.11) (0.10) (0.07) (0.09)
-------------- ---------------- ---------- ---------- ---------- -------
NET ASSET VALUE - END OF PERIOD . . . . . . $ 23.52 $ 23.51 $ 20.15 $ 17.59 $ 19.53 $22.83
============== ================ ========== ========== ========== =======
Total return1 . . . . . . . . . . . . . . . 5.62% 16.96% 15.27% (9.49%) (14.17%) 31.63%
RATIOS (TO AVERAGE NET ASSETS)/
SUPPLEMENTAL DATA:
Expenses* . . . . . . . . . . . . . . . . . 1.20%2 1.20% 1.20% 1.20% 1.20% 1.20%
Net investment income . . . . . . . . . . . 0.37%2 0.10% 0.26% 0.53% 0.67% 0.36%
Portfolio turnover. . . . . . . . . . . . . 37% 64% 34% 63% 44% 67%
NET ASSETS - END OF PERIOD (000's omitted). $ 6,470 $ 6,205 $ 4,875 $ 3,726 $ 3,362 $1,950
============== ================ ========== ========== ========== =======
*The investment advisor did not impose all of its management fee and in some
periods paid a portion of the Series' expenses. If these expenses had been
incurred by the Series, the expense ratio (to average net assets) would have
been increased as follows:
0.76%2 0.83% 2.53% 3.16% 3.23% 3.34%
1Represents aggregate total return for the period indicated, and assumes
reinvestment of all distributions. Total return would have been lower had
certain expenses not been waived or reimbursed during the period. Periods less
than one year are not annualized.
2Annualized.
The accompanying notes are an integral part of the financial statements.
13
Notes to Financial Statements (unaudited)
1. ORGANIZATION
Tax Managed Series (the "Series") is a no-load diversified series of Exeter
Fund, Inc. (the "Fund"). The Fund is organized in Maryland and is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company.
The Series' investment objective is to maximize long-term growth while
attempting to minimize the impact of taxes on the Series' total return.
The Series is authorized to issue five classes of shares (Class A, B, C, D and
E). Currently, only Class A shares have been issued. Each class of shares is
substantially the same, except that class-specific distribution and shareholder
servicing expenses are borne by the specific class of shares to which they
relate.
Shares of the Series are offered to investors and employees of Manning & Napier
Advisors, Inc. (the "Advisor"), doing business as Exeter Asset Management, and
its affiliates. The total authorized capital stock of the Fund consists of 1.7
billion shares of common stock each having a par value of $0.01. As of April 30,
2005, 1.16 billion shares have been designated in total among 21 series, of
which 37.5 million have been designated as Tax Managed Series Class A common
stock.
2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Portfolio securities, including domestic equities, foreign equities,
exchange-traded funds and options, listed on an exchange other than the NASDAQ
National Market System are valued at the latest quoted sales price of the
exchange on which the security is primarily traded. Securities not traded on
valuation date or securities not listed on an exchange are valued at the latest
quoted bid price provided by the Fund's pricing service. Securities listed on
the NASDAQ National Market System are valued in accordance with the NASDAQ
Official Closing Price.
Securities for which representative valuations or prices are not available from
the Fund's pricing service may be valued at fair value. If trading or events
occurring after the close of the principal market in which securities are traded
are expected to materially affect the value of those securities, then they may
be valued at their fair value, taking this trading or these events into account.
Fair value is determined in good faith by the Advisor under procedures approved
by and under the general supervision and responsibility of the Fund's Board of
Directors.
Short-term investments that mature in sixty days or less are valued at amortized
cost, which approximates market value. Investments in open-end investment
companies are valued at their net asset value per share on valuation date, with
the exception of exchange-traded funds as noted above.
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES
Security transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date, except that if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as soon as the
Fund is informed of the ex-dividend date. Non-cash dividends, if any, are
recorded at the fair market value of the securities received. Interest income
and expenses are recorded on an accrual basis.
Most expenses of the Fund can be attributed to a specific series. Expenses
which cannot be directly attributed are apportioned among the series in the Fund
in such a manner as deemed equitable by the Fund's Directors, taking into
consideration, among other things, the nature and type of expense.
14
Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES (continued)
The Series uses the identified cost method for determining realized gain or loss
on investments for both financial statement and federal income tax reporting
purposes.
FOREIGN CURRENCY TRANSLATION
The books and records of the Series are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the current exchange rates. Purchases and sales of investment
securities and income and expenses are translated on the respective dates of
such transactions. The Series does not isolate realized and unrealized gains and
losses attributable to changes in the exchange rates from gains and losses that
arise from changes in the market value of investments. Such fluctuations are
included with net realized and unrealized gain or loss on investments. Net
realized foreign currency gains and losses represent foreign currency gains and
losses between trade date and settlement date on securities transactions, gains
and losses on disposition of foreign currencies and the difference between the
amount of income and foreign withholding taxes recorded on the books of the
Series and the amounts actually received or paid.
FEDERAL TAXES
The Series' policy is to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies. The Series is not subject to
federal income or excise tax to the extent that the Series distributes to
shareholders each year its taxable income, including any net realized gains on
investments, in accordance with requirements of the Internal Revenue Code.
Accordingly, no provision for federal income tax or excise tax has been made in
the financial statements.
DISTRIBUTIONS OF INCOME AND GAINS
Distributions to shareholders of net investment income and net realized gains
are made annually. An additional distribution may be necessary to avoid taxation
of the Series. Distributions are recorded on the ex-dividend date.
OTHER
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
3. TRANSACTIONS WITH AFFILIATES
The Fund has an Investment Advisory Agreement (the "Agreement") with the
Advisor, for which the Series pays a fee, computed daily and payable monthly, at
an annual rate of 1.00% of the Series' average daily net assets.
Under the Agreement, personnel of the Advisor provide the Series with advice and
assistance in the choice of investments and the execution of securities
transactions, and otherwise maintain the Series' organization. The Advisor also
provides the Fund with necessary office space and fund administration services.
The salaries of all officers of the Fund (except a percentage of the Fund's
Chief Compliance Officer's salary, which is paid by the Fund, and the Special
Assistant Secretary's salary, which is paid by BISYS), and of all Directors who
are "affiliated persons" of the Fund, or of the Advisor, and all personnel of
the Fund, or of the
15
Notes to Financial Statements (unaudited)
3. TRANSACTIONS WITH AFFILIATES (continued)
Advisor, performing services relating to research, statistical and investment
activities, are paid by the Advisor. Each "non-affiliated" Director receives an
annual stipend, which is allocated among all the active series of the Fund. In
addition, these Directors also receive a per meeting fee for each active series
of the Fund plus a fee for each committee meeting attended.
The Advisor has contractually agreed, until at least February 28, 2006, to waive
its fee and, if necessary, pay other operating expenses of the Series in order
to maintain total expenses for the Series at no more than 1.20% of average daily
net assets each year. Accordingly, the Advisor waived fees of $25,463 for the
six months ended April 30, 2005, which is reflected as a reduction of expenses
on the Statement of Operations.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate
of the Advisor, acts as distributor for the Fund's shares. The services of
Manning & Napier Investor Services, Inc. are provided at no additional cost to
the Series.
Effective November 1, 2003, the Master Services Agreement between the Fund and
the Advisor, which covers fund accounting services and transfer agent services,
was amended. Under the amended agreement, for providing these services, the
Fund pays the Advisor an annual fee of 0.15% of the Fund's average daily net
assets up to $900 million, 0.11% for the Fund's average daily net assets between
$900 million and $1.5 billion, and 0.07% for the Fund's average daily net assets
over $1.5 billion. These fee rates are scheduled to be reduced each year
through 2007. Additionally, certain transaction and account-based fees and
out-of-pocket expenses, including charges for reporting relating to the Fund's
Compliance Program, are charged. Expenses not directly attributable to a series
are allocated based on each series' relative net assets or number of accounts,
depending on the expense. The Advisor has an agreement with BISYS Fund Services
Ohio, Inc. ("BISYS") under which BISYS serves as sub-accounting services and
sub-transfer agent.
4. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2005, purchases and sales of securities,
other than United States Government securities and short-term securities, were
$2,276,730 and $2,402,874, respectively. There were no purchases or sales of
United States Government securities.
5. CAPITAL STOCK TRANSACTIONS
Transactions in Class A shares of Tax Managed Series were:
FOR THE SIX MONTHS FOR THE YEAR
ENDED 4/30/05 ENDED 10/31/04
------------------------------------- ----------------------
Shares Amount Shares Amount
------------------- ---------------- -------- ------------
Sold. . . . 37,713 $ 900,075 74,451 $ 1,666,356
Reinvested. 14,644 349,259 569 11,928
Repurchased (41,257) (991,231) (52,998) (1,208,641)
------------------- ---------------- -------- ------------
Total . . . 11,100 $ 258,103 22,022 $ 469,643
=================== ================ ======== ============
The Advisor owned 24,700 shares on April 30, 2005 (9.0% of shares outstanding)
valued at $580,944.
16
Notes to Financial Statements (unaudited)
6. FINANCIAL INSTRUMENTS
The Series may trade in financial instruments with off-balance sheet risk in the
normal course of its investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. No such investments were held by
the Series on April 30, 2005.
7. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in
securities of domestic companies and the United States Government. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of foreign companies and foreign governments
and their markets may be less liquid and their prices more volatile than those
of comparable domestic companies and the United States Government.
8. FEDERAL INCOME TAX INFORMATION
The amount and characterization of certain income and capital gains to be
distributed are determined in accordance with federal income tax regulations,
which may differ from accounting principles generally accepted in the United
States of America. The Series may periodically make reclassifications among its
capital accounts to reflect income and gains available for distribution (or
available capital loss carryovers) under income tax regulations, without
impacting the Series' net asset value. Any such reclassifications are not
reflected in the financial highlights.
The final determination of the tax character of current year distributions will
be made at the conclusion of the fiscal year. The tax character of
distributions paid for the year ended October 31, 2004 were as follows:
Ordinary income $11,932
At April 30, 2005, the identified cost of investments for federal income tax
purposes, the gross unrealized appreciation and depreciation, and the net
unrealized appreciation were as follows:
Cost for federal income tax purposes $5,731,575
Unrealized appreciation. . . . . . . $ 812,885
Unrealized depreciation. . . . . . . (61,454)
-----------
Net unrealized appreciation. . . . . $ 751,431
===========
17
Literature Requests (unaudited)
PROXY VOTING POLICIES AND PROCEDURES
- --------------------------------------------------------------------------------
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available, without charge,
upon request:
By phone 1-800-466-3863
On the Securities and Exchange
Commission's (SEC) web site http://www.sec.gov
PROXY VOTING RECORD
- --------------------------------------------------------------------------------
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30th is available,
without charge, upon request:
By phone 1-800-466-3863
On the SEC's web site http://www.sec.gov
QUARTERLY PORTFOLIO HOLDINGS
- --------------------------------------------------------------------------------
The Series' complete schedule of portfolio holdings for the 1st and 3rd quarters
of each fiscal year are provided on Form N-Q, and is available, without charge,
upon request:
By phone 1-800-466-3863
On the SEC's web site http:\\www.sec.gov
The Series' Form N-Q may be reviewed and copied at the SEC's Public Reference
Room in Washington, D.C. Information on the operation of the Public Reference
Room may be obtained by calling 1-800-SEC-0330.
PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION (SAI)
- --------------------------------------------------------------------------------
The prospectus and SAI provide additional information about each Series,
including charges, expenses and risks. These documents are available, without
charge, upon request:
By phone 1-800-466-3863
On the SEC's web site http://www.sec.gov
On the Advisor's web site
http://www.manningnapieradvisors.com/www/exeter_fund.asp
ADDITIONAL INFORMATION AVAILABLE AT
WWW.MANNINGNAPIERADVISORS.COM/WWW/EXETER_FUND.ASP
- --------------------------------------------------------------------------------
1. Fund Holdings - month-end
2. Fund Holdings - quarter-end
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
18
Exeter Fund, Inc.
Semi-Annual Report
April 30, 2005
Overseas Series
Renewal of Investment Advisory Agreement (unaudited)
At the Exeter Fund, Inc. (the "Fund") Board of Director's annual in person
meeting, held on November 18, 2004, the Investment Advisory Agreement (the
"Agreement") between the Fund and Manning & Napier Advisor, Inc. (the "Advisor")
was reviewed by the Board for renewal. In connection with the decision whether
to renew the Agreement, a variety of material was prepared for and reviewed by
the Board. In addition, at the meeting of the Board, representatives of the
Advisor presented additional oral and written information to help the Board
evaluate the Advisor's performance under the Agreement over the previous year.
The Board then deliberated the renewal of the Agreement in light of the various
material provided prior to and at the meeting.
In connection with their review and deliberations, the Board considered the
following factors and reached a conclusion with respect to such factors.
- - The Board considered the services provided by the Advisor under the
Agreement including, among others: deciding what securities to purchase and sell
for each Series; arranging for the purchase and sale of such securities by
placing orders with broker-dealers; administering of the affairs of the Fund
(including the books and records of the Fund not maintained by third party
service providers such as custodian or sub-transfer agent); arranging for the
insurance coverage for the Fund; and supervising the preparation of tax returns,
preparation of SEC filings (including registration statements) and reports to
shareholders for the Fund. The Board discussed the quality of these services
with representatives from the Advisor and concluded that the Advisor was
performing its services to the Fund required under the Agreement in a reasonable
manner.
- - The Board considered the investment performance of the various Series of
the Fund. The investment performance for each Series was reviewed on a
cumulative basis since inception and on a one year basis. In addition,
annualized peformance for the following time periods was considered: inception,
three year, five year, ten year, and current market cycle. Market cycle includes
periods of both rising and falling markets. Returns for established benchmark
indices for each Series were provided for each time period. In addition, the
Board considered at the meeting (and considers on a quarterly basis) a peer
group performance analysis consisting of Morningstar universes of mutual funds
with similar investment objectives. The Board discussed the performance with
representatives from the Advisor and concluded that the investment performance
of each of the Fund's Series was reasonable based on the Fund's actual
performance and comparative performance, especially performance over the current
market cycle.
- - The Board considered the costs of the Advisor's services and the profits
of the Advisor as they relate to the Advisor's services to the Fund under the
Agreement. In reviewing the Advisor's costs and profits, the Board discussed
the Advisor's revenues generated from the Fund (on both an actual and adjusted
basis) and its expenses associated with providing the services under the
Agreement. In addition, the Board reviewed the Advisor's expenses associated
with Fund activities outside of the Agreement (such as expense reimbursements
pursuant to expense caps and payments made by the Advisor to third party
platforms on which shares of the Fund are available for purchase). It was noted
by representatives of the Advisor that 11 of the 15 active Series of the Fund
are currently experiencing expenses above the capped expense ratios. After
discussing the above costs and profits, the Board concluded that the Advisor's
profitability relating to its services provided under the Agreement is
reasonable.
- - The Board considered the fees and expenses of the various Series of the
Fund. The Advisor presented the advisory fees and total expenses for each
Series, including the advisory fee adjusted for any expense reimbursements
(either contractually or voluntarily) paid by the Advisor. The advisory fees
and expense ratios of each Series were compared to an average (on
1
Renewal of Investment Advisory Agreement (unaudited)
both a mean and median basis) of similar funds as disclosed on the Morningstar
database. Representatives of the Advisor discussed with the Board the levels of
its advisory fee for the Series of the Fund and as compared to the median and
mean advisory fees for similar funds as listed on Morningstar. Expense ratios
for every Series are currently below the median and mean for similar funds as
listed on Morningstar. Based on their review of the information provided, the
Board concluded that the fees and expenses of each Series of the Fund were
reasonable on a comparative basis.
- - The Board also considered the other benefits the Advisor derives from its
relationship with the Fund. Such other benefits include certain research
products provided by soft dollars. Given the level of soft dollar transactions
involving the Fund, the Board concluded that these additional benefits to the
Advisor were reasonable.
- - In addition to the factors described above, the Board considered the
Advisor's personnel, the Advisor's investment strategies, the Advisor's policies
and procedures relating to compliance with personal securities transactions, the
Advisor's reputation, expertise and resources in domestic and foreign financial
markets. The Board concluded that these factors support the conclusion that the
Advisor performs its services in a reasonable manner.
- - The Board did not consider economies of scale at this time because of the
multiple uses of the Fund (for the Advisor's discretionary investment account
clients in addition to direct investors), the current profitability of the
Advisor's services to the Fund under the Agreement and the overall size of the
Fund complex.
Based on the Board's conclusions regarding the factors described above, the
Board, including a majority of Directors that are "not interested" as defined in
the Investment Company Act of 1940, approved the renewal of the Agreement for
another year. In the course of their deliberations, the Directors did not
identify any particular information that was all important or controlling.
2
Performance Update as of April 30, 2005 (unaudited)
Average Annual Total Returns
As of April 30, 2005
-------------------------------------------------
One Five Since
Year Year Inception1
----------------------------- ----- -----------
Exeter Fund, Inc. - Overseas Series2,3 . . . . . . . . . . . . . . . . . . . 14.70% 7.05% 11.57%
Morgan Stanley Capital International (MSCI) All Country World Index ex U.S.4 16.92% 0.57% 6.83%
The following graph compares the value of a $10,000 investment in the Exeter
Fund, Inc. - Overseas Series from its inception1 (9/23/98) to present (4/30/05)
to the MSCI All Country World Index ex U.S.
Data for the line graph to follow:
Exeter Fund, Inc. MSCI
Date Overseas Series All Country World Index ex U.S.
- -------- ------------------ --------------------------------
9/23/98. $ 10,000 $ 10,000
10/31/98 10,210 11,048
10/31/99 12,540 13,838
10/31/00 14,500 13,552
10/31/01 13,540 10,174
10/31/02 12,540 9,067
10/31/03 15,660 11,823
10/31/04 19,039 14,150
4/30/05. 20,608 15,442
1Performance numbers for the Series are calculated from September 23, 1998, the
Collective's inception date (see Note 3 below). Prior to 2001, the MSCI All
Country World Index ex U.S. only published month-end numbers; therefore,
performance numbers for the Index are calculated from September 30, 1998.
2The Series' performance does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of shares. The
Series' performance is historical and may not be indicative of future results.
3For periods prior to the inception of the Series on July 10, 2002, the
performance figures reflect the performance of the Exeter Trust Company Group
Trust for Employee Benefit Plans - International Equity Collective Investment
Trust (the "Collective"), which was managed by the Advisor and reorganized into
the Series. The Collective was not open to the public generally, or registered
under the Investment Company Act of 1940 (the "1940 Act"), or subject to certain
restrictions that are imposed by the 1940 Act. If the Collective had been
registered under the 1940 Act, performance may have been adversely affected.
Because the fees of the Collective were lower than the Series' fees, historical
performance would have been lower if the Collective had been subject to the same
fees.
4The MSCI All Country World Index ex U.S. is a free float-adjusted market
capitalization index that is designed to measure equity market performance in
the global developed and emerging markets and consists of 48 developed and
emerging market country indices outside the United States. The Index is
denominated in U.S. Dollars. The Index returns assume daily reinvestment of
gross dividends (which do not account for foreign dividend taxation) and, unlike
Series returns, do not reflect any fees or expenses.
3
Shareholder Expense Example (unaudited)
As a shareholder of the Series, you may incur two types of costs: (1)
transaction costs, including potential wire charges on redemptions and (2)
ongoing costs, including management fees and other Series expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Series and to compare these costs with the ongoing costs of
investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (November 1, 2004 to April 30, 2005).
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Series' actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Series' actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid
during the period. You may use this information to compare the ongoing costs of
investing in the Series 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 costs, such as potential
wire charges on redemptions. Therefore, the second line of the table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
11/1/04 4/30/05 11/1/04-4/30/05
-------------- -------------- ----------------
Actual. . . . . . . . . . . $ 1,000.00 $ 1,082.40 $ 5.42
Hypothetical
(5% return before expenses) $ 1,000.00 $ 1,019.59 $ 5.26
*Expenses are equal to the Series' annualized expense ratio (for the six-month
period) of 1.05%, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period). Expenses are based
on the most recent fiscal half year; therefore, the Series' expense ratio may
differ from the expense ratio based on one-year data in the financial
highlights. The Series' total return would have been lower had certain expenses
not been waived or reimbursed during the period.
4
Portfolio Composition - As of April 30, 2005 (unaudited)
Data for pie chart to follow:
Country Allocation*
Brazil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.8%
Finland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3%
France . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2%
Germany. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2%
Guernsey . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0%
Japan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.9%
Mexico . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.0%
Netherlands. . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5%
Norway . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3%
Switzerland. . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2%
Taiwan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1%
United Kingdom . . . . . . . . . . . . . . . . . . . . . . . . . 19.1%
Miscellaneous**. . . . . . . . . . . . . . . . . . . . . . . . . 7.6%
Cash, short-term investments, and liabilities, less other assets 5.8%
*As a percentage of net assets.
**Miscellaneous:
Austria
Canada
South Africa
Spain
United States
Data for pie chart to follow:
Sector Allocation*
Consumer Discretionary . . . . . . . . . . . . . . . . . . . . . 16.0%
Consumer Staples . . . . . . . . . . . . . . . . . . . . . . . . 22.9%
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.8%
Health Care. . . . . . . . . . . . . . . . . . . . . . . . . . . 10.5%
Industrials. . . . . . . . . . . . . . . . . . . . . . . . . . . 12.6%
Information Technology . . . . . . . . . . . . . . . . . . . . . 8.4%
Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.4%
Telecommunication Services . . . . . . . . . . . . . . . . . . . 5.6%
Cash, short-term investments, and liabilities, less other assets 5.8%
*As a percentage of net assets.
5
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
SHARES (NOTE 2)
------- ---------
COMMON STOCKS - 94.2%
CONSUMER DISCRETIONARY - 16.0%
HOTELS, RESTAURANTS & LEISURE - 3.4%
Club Mediterranee S.A.* (France) (Note 7) . . . . . . . . . . . 1,000 $ 47,233
----------
HOUSEHOLD DURABLES - 3.2%
Sony Corp. - ADR (Japan) (Note 7) . . . . . . . . . . . . . . . 1,175 43,134
----------
MEDIA - 7.4%
News Corp. - Class A. . . . . . . . . . . . . . . . . . . . . . 1,600 24,448
Pearson plc (United Kingdom) (Note 7) . . . . . . . . . . . . . 2,400 29,084
Reed Elsevier plc - ADR (United Kingdom) (Note 7) . . . . . . . 550 21,714
VNU N.V. (Netherlands) (Note 7) . . . . . . . . . . . . . . . . 953 26,689
----------
101,935
----------
SPECIALTY RETAIL - 2.0%
Douglas Holding AG (Germany) (Note 7) . . . . . . . . . . . . . 825 27,787
----------
TOTAL CONSUMER DISCRETIONARY. . . . . . . . . . . . . . . . . . 220,089
----------
CONSUMER STAPLES - 22.9%
Food & Staples Retailing - 1.9%
Carrefour S.A. (France) (Note 7). . . . . . . . . . . . . . . . 550 26,544
----------
FOOD PRODUCTS - 9.8%
Cadbury Schweppes plc (United Kingdom) (Note 7) . . . . . . . . 2,700 27,052
Nestle S.A. (Switzerland) (Note 7). . . . . . . . . . . . . . . 210 54,995
Unilever plc - ADR (United Kingdom) (Note 7). . . . . . . . . . 1,350 51,786
----------
133,833
----------
HOUSEHOLD PRODUCTS - 6.0%
Henkel KGaA (Germany) (Note 7). . . . . . . . . . . . . . . . . 325 27,899
Kimberly-Clark de Mexico S.A. de C.V. - ADR (Mexico) (Note 7) . 3,850 54,683
----------
82,582
----------
PERSONAL PRODUCTS - 5.2%
Clarins S.A. (France) (Note 7). . . . . . . . . . . . . . . . . 749 45,065
Shiseido Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . . . 2,000 25,489
----------
70,554
----------
TOTAL CONSUMER STAPLES. . . . . . . . . . . . . . . . . . . . . 313,513
----------
ENERGY - 10.8%
Energy Equipment & Services - 9.4%
Abbot Group plc (United Kingdom) (Note 7) . . . . . . . . . . . 10,475 42,380
Compagnie Generale de Geophysique S.A. (CGG)* (France) (Note 7) 450 35,328
Smedvig ASA - Class A (Norway) (Note 7) . . . . . . . . . . . . 2,900 50,646
----------
128,354
----------
The accompanying notes are an integral part of the financial statements.
6
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
SHARES (NOTE 2)
------- ---------
ENERGY (continued)
OIL, GAS & CONSUMABLE FUELS - 1.4%
Petroleo Brasileiro S.A. (Petrobras) - ADR (Brazil) (Note 7) . . . . . . 525 $ 19,294
----------
TOTAL ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147,648
----------
HEALTH CARE - 10.5%
PHARMACEUTICALS - 10.5%
GlaxoSmithKline plc (United Kingdom) (Note 7). . . . . . . . . . . . . . 1,525 38,183
Novartis AG - ADR (Switzerland) (Note 7) . . . . . . . . . . . . . . . . 1,300 63,349
Schering AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . . . 650 42,664
----------
TOTAL HEALTH CARE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 144,196
----------
INDUSTRIALS - 12.6%
AEROSPACE & DEFENSE - 2.4%
Empresa Brasileira de Aeronautica S.A. (Embraer) - ADR (Brazil) (Note 7) 1,150 33,166
----------
COMMERCIAL SERVICES & SUPPLIES - 6.2%
Aggreko plc (United Kingdom) (Note 7). . . . . . . . . . . . . . . . . . 4,325 15,043
BWT AG (Austria) (Note 7). . . . . . . . . . . . . . . . . . . . . . . . 250 7,799
Tomra Systems ASA (Norway) (Note 7). . . . . . . . . . . . . . . . . . . 9,750 35,677
Quebecor World, Inc. (Canada) (Note 7) . . . . . . . . . . . . . . . . . 1,175 25,991
----------
84,510
----------
CONSTRUCTION & ENGINEERING - 2.6%
Koninklijke Boskalis Westminster N.V. (Netherlands) (Note 7) . . . . . . 961 35,014
----------
ELECTRICAL EQUIPMENT - 1.4%
Gamesa Corporacion Tecnologica S.A. (Spain) (Note 7) . . . . . . . . . . 1,550 19,929
----------
TOTAL INDUSTRIALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,619
----------
INFORMATION TECHNOLOGY - 8.4%
COMMUNICATIONS EQUIPMENT - 2.3%
Nokia Oyj - ADR (Finland) (Note 7) . . . . . . . . . . . . . . . . . . . 2,000 31,960
----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.1%
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR (Taiwan) (Note 7). . . 3,300 28,413
----------
SOFTWARE - 4.0%
Amdocs Ltd.* (Guernsey) (Note 7) . . . . . . . . . . . . . . . . . . . . 1,025 27,378
Business Objects S.A. - ADR* (France) (Note 7) . . . . . . . . . . . . . 1,050 27,100
----------
54,478
----------
TOTAL INFORMATION TECHNOLOGY . . . . . . . . . . . . . . . . . . . . . . 114,851
----------
MATERIALS - 7.4%
CHEMICALS - 4.6%
Lonza Group AG (Switzerland) (Note 7). . . . . . . . . . . . . . . . . . 1,050 62,946
----------
The accompanying notes are an integral part of the financial statements.
7
Investment Portfolio - April 30, 2005 (unaudited)
SHARES/ VALUE
PRINCIPAL AMOUNT (NOTE 2)
------------------ ---------
MATERIALS (continued)
PAPER & FOREST PRODUCTS - 2.8%
Aracruz Celulose S.A. - ADR (Brazil) (Note 7). . . . . . 425 $ 13,047
Sappi Ltd. - ADR (South Africa) (Note 7) . . . . . . . . 2,500 24,950
-----------
37,997
-----------
TOTAL MATERIALS. . . . . . . . . . . . . . . . . . . . . 100,943
-----------
TELECOMMUNICATION SERVICES - 5.6%
WIRELESS TELECOMMUNICATION SERVICES - 5.6%
NTT DoCoMo, Inc. (Japan) (Note 7). . . . . . . . . . . . 26 40,179
Vodafone Group plc - ADR (United Kingdom) (Note 7) . . . 1,400 36,596
-----------
TOTAL TELECOMMUNICATION SERVICES . . . . . . . . . . . . 76,775
-----------
TOTAL COMMON STOCKS
(Identified Cost $1,114,679) . . . . . . . . . . . . . . 1,290,634
-----------
SHORT-TERM INVESTMENTS - 7.2%
Dreyfus Treasury Cash Management - Institutional Shares. 48,581 48,581
U.S. Treasury Bill, 6/16/2005. . . . . . . . . . . . . . $ 50,000 49,831
-----------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $98,412). . . . . . . . . . . . . . . . 98,412
-----------
TOTAL INVESTMENTS - 101.4%
(Identified Cost $1,213,091) . . . . . . . . . . . . . . 1,389,046
LIABILITIES, LESS OTHER ASSETS - (1.4%). . . . . . . . . (19,352)
-----------
NET ASSETS - 100%. . . . . . . . . . . . . . . . . . . . $ 1,369,694
===========
*Non-income producing security
ADR - American Depository Receipt
The Series' portfolio holds, as a percentage of net assets, greater than 10% in
the following countries: United Kingdom - 19.1%; Switzerland - 13.2%; France -
13.2%.
The accompanying notes are an integral part of the financial statements.
8
Statement of Assets and Liabilities (unaudited)
April 30, 2005
ASSETS:
Investments, at value (identified cost $1,213,091) (Note 2). . . . . . . . . . $1,389,046
Dividends receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,486
Foreign tax reclaims receivable. . . . . . . . . . . . . . . . . . . . . . . . 1,198
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Receivable from investment advisor (Note 3). . . . . . . . . . . . . . . . . . 8,018
----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,403,790
----------
LIABILITIES:
Accrued fund accounting and transfer agent fees (Note 3) . . . . . . . . . . . 990
Accrued chief compliance officer services (Note 3) . . . . . . . . . . . . . . 600
Audit fees payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,799
Payable for securities purchased . . . . . . . . . . . . . . . . . . . . . . . 12,495
Accrued legal fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,212
----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,096
----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,369,694
==========
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 683
Additional paid-in-capital . . . . . . . . . . . . . . . . . . . . . . . . . . 1,146,911
Undistributed net investment income. . . . . . . . . . . . . . . . . . . . . . 10,951
Accumulated net realized gain on investments and other assets and liabilities. 35,162
Net unrealized appreciation on investments and other assets and liabilities. . 175,987
----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,369,694
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE ($1,369,694/68,289 shares) . . . . . . . . . . . . . . . . . . $ 20.06
==========
The accompanying notes are an integral part of the financial statements.
9
Statement of Operations (unaudited)
For the Six Months Ended April 30, 2005
INVESTMENT INCOME:
Dividends (net of foreign tax withheld, $1,897). . $ 16,413
Interest . . . . . . . . . . . . . . . . . . . . . 1,080
---------
Total Investment Income. . . . . . . . . . . . . . 17,493
---------
EXPENSES:
Management fees (Note 3) . . . . . . . . . . . . . 6,215
Directors' fees (Note 3) . . . . . . . . . . . . . 3,352
Chief compliance officer services (Note 3) . . . . 2,343
Fund accounting and transfer agent fees (Note 3) . 2,086
Audit fees . . . . . . . . . . . . . . . . . . . . 14,797
Legal fees . . . . . . . . . . . . . . . . . . . . 1,713
Custodian fees . . . . . . . . . . . . . . . . . . 1,587
Miscellaneous. . . . . . . . . . . . . . . . . . . 836
---------
Total Expenses . . . . . . . . . . . . . . . . . . 32,929
Less reduction of expenses (Note 3). . . . . . . . (26,388)
---------
Net Expenses . . . . . . . . . . . . . . . . . . . 6,541
---------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . 10,952
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on -
Investments. . . . . . . . . . . . . . . . . . . . 35,149
Foreign currency and other assets and liabilities. 16
---------
35,165
---------
Net change in unrealized appreciation on -
Investments. . . . . . . . . . . . . . . . . . . . 32,864
Foreign currency and other assets and liabilities. (49)
---------
32,815
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS. . . . . . . . . . . . . . . . . . . . 67,980
---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS . . . . . . . . . . . . . . . . . . . . $ 78,932
=========
The accompanying notes are an integral part of the financial statements.
10
Statements of Changes in Net Assets
FOR THE SIX
MONTHS ENDED FOR THE
4/30/05 YEAR ENDED
(UNAUDITED) 10/31/04
-------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . $ 10,952 $ 9,373
Net realized gain on investments . . . . . . . . . . . 35,165 64,844
Net change in unrealized appreciation on investments . 32,815 88,074
-------------- ------------
Net increase from operations . . . . . . . . . . . . . 78,932 162,291
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 8):
From net investment income . . . . . . . . . . . . . . (8,506) (7,711)
From net realized gain on investments. . . . . . . . . (10,922) -
-------------- ------------
Total distributions to shareholders. . . . . . . . . . (19,428) (7,711)
-------------- ------------
CAPITAL STOCK ISSUED AND REPURCHASED:
Net increase from capital share transactions (Note 5). 265,838 188,732
-------------- ------------
Net increase in net assets . . . . . . . . . . . . . . 325,342 343,312
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . 1,044,352 701,040
-------------- ------------
END OF PERIOD (including undistributed net investment
income of $10,951 and $8,505, respectively). . . . . . $ 1,369,694 $ 1,044,352
============== ============
The accompanying notes are an integral part of the financial statements.
11
Financial Highlights
FOR THE SIX FOR THE
MONTHS ENDED PERIOD
4/30/05 FOR THE YEARS ENDED 7/10/02 1 TO
(UNAUDITED) 10/31/04 10/31/03 10/31/02
-------------- --------------------- ------------- ----------
PER SHARE DATA (FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD):
NET ASSET VALUE - BEGINNING OF PERIOD. . . . . . . $ 18.84 $ 15.66 $ 12.54 $ 14.37
-------------- --------------------- ------------- ----------
Income (loss) from investment operations:
Net investment income (loss) . . . . . . . . . . . 0.15 0.17 0.15 -2
Net realized and unrealized gain (loss) on
investments. . . . . . . . . . . . . . . . . . . . 1.41 3.18 2.97 (1.83)
-------------- --------------------- ------------- ----------
Total from investment operations . . . . . . . . . 1.56 3.35 3.12 (1.83)
-------------- --------------------- ------------- ----------
Less distributions to shareholders:
From net investment income . . . . . . . . . . . . (0.15) (0.17) - -
From net realized gain on investments. . . . . . . (0.19) - - -
-------------- --------------------- ------------- ----------
Total distributions to shareholders. . . . . . . . (0.34) (0.17) - -
-------------- --------------------- ------------- ----------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . $ 20.06 $ 18.84 $ 15.66 $ 12.54
============== ===================== ============= ==========
Total return3. . . . . . . . . . . . . . . . . . . 8.24% 21.58% 24.88% (12.73%)
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL DATA:
Expenses*. . . . . . . . . . . . . . . . . . . . . 1.05%4 1.05% 1.05% 1.05%4
Net investment income (loss) . . . . . . . . . . . 1.76%4 1.08% 1.15% (0.10%)4
Portfolio turnover . . . . . . . . . . . . . . . . 15% 35% 30% 12%
NET ASSETS - END OF PERIOD (000's omitted) . . . . $ 1,370 $ 1,044 $ 701 $ 510
============== ===================== ============= ==========
*The investment advisor did not impose its management fee and paid a portion of
the Series' expenses. If these expenses had been incurred by the Series, the
expense ratio (to average net assets) would have been increased as follows:
4.24%4 5.63% 19.95% 33.12%4
1Commencement of operations.
2Less than $0.01.
3Represents aggregate total return for the period indicated, and assumes
reinvestment of all distributions. Total return would have been lower had
certain expenses not been waived or reimbursed during the period. Periods less
than one year are not annualized.
4Annualized.
The accompanying notes are an integral part of the financial statements.
12
Notes to Financial Statements (unaudited)
1. ORGANIZATION
Overseas Series (the "Series") is a no-load, non-diversified series of Exeter
Fund, Inc. (the "Fund"). The Fund is organized in Maryland and is registered
under the Investment Company Act of 1940, as amended, as an open-end management
investment company.
The Series' investment objective is to provide long-term capital growth by
investing principally in the common stocks of issuers from outside the United
States.
Shares of the Series are offered to investors and employees of Manning & Napier
Advisors, Inc. (the "Advisor"), doing business as Exeter Asset Management, and
its affiliates. The total authorized capital stock of the Fund consists of 1.7
billion shares of common stock each having a par value of $0.01. As of April 30,
2005, 1.16 billion shares have been designated in total among 21 series, of
which 50 million have been designated as Overseas Series common stock.
2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Portfolio securities, including domestic equities, foreign equities and options,
listed on an exchange other than the NASDAQ National Market System are valued at
the latest quoted sales price of the exchange on which the security is primarily
traded. Securities not traded on valuation date or securities not listed on an
exchange are valued at the latest quoted bid price provided by the Fund's
pricing service. Securities listed on the NASDAQ National Market System are
valued in accordance with the NASDAQ Official Closing Price.
Securities for which representative valuations or prices are not available from
the Fund's pricing service may be valued at fair value. If trading or events
occurring after the close of the principal market in which securities are traded
are expected to materially affect the value of those securities, then they may
be valued at their fair value, taking this trading or these events into account.
Fair value is determined in good faith by the Advisor under procedures approved
by and under the general supervision and responsibility of the Fund's Board of
Directors.
Short-term investments that mature in sixty days or less are valued at amortized
cost, which approximates market value. Investments in open-end investment
companies are valued at their net asset value per share on valuation date.
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES
Security transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date, except that if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as soon as the
Fund is informed of the ex-dividend date. Non-cash dividends, if any, are
recorded at the fair market value of the securities received. Interest income
and expenses are recorded on an accrual basis.
Most expenses of the Fund can be attributed to a specific series. Expenses which
cannot be directly attributed are apportioned among the series in the Fund in
such a manner as deemed equitable by the Fund's Directors, taking into
consideration, among other things, the nature and type of expense.
The Series uses the identified cost method for determining realized gain or loss
on investments for both financial statement and federal income tax reporting
purposes.
FOREIGN CURRENCY TRANSLATION
The books and records of the Series are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the current exchange
13
Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
FOREIGN CURRENCY TRANSLATION (continued)
rates. Purchases and sales of investment securities and income and expenses are
translated on the respective dates of such transactions. The Series does not
isolate realized and unrealized gains and losses attributable to changes in the
exchange rates from gains and losses that arise from changes in the market value
of investments. Such fluctuations are included with net realized and unrealized
gain or loss on investments. Net realized foreign currency gains and losses
represent foreign currency gains and losses between trade date and settlement
date on securities transactions, gains and losses on disposition of foreign
currencies and the difference between the amount of income and foreign
withholding taxes recorded on the books of the Series and the amounts actually
received or paid.
FEDERAL TAXES
The Series' policy is to comply with the provisions of the Internal Revenue Code
applicable to regulated investment companies. The Series is not subject to
federal income or excise tax to the extent that the Series distributes to
shareholders each year its taxable income, including any net realized gains on
investments, in accordance with requirements of the Internal Revenue Code.
Accordingly, no provision for federal income tax or excise tax has been made in
the financial statements.
DISTRIBUTIONS OF INCOME AND GAINS
Distributions to shareholders of net investment income and net realized gains
are made annually. An additional distribution may be necessary to avoid taxation
of the Series. Distributions are recorded on the ex-dividend date.
OTHER
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
3. TRANSACTIONS WITH AFFILIATES
The Fund has an Investment Advisory Agreement (the "Agreement") with the
Advisor, for which the Series pays a fee, computed daily and payable monthly, at
an annual rate of 1.00% of the Series' average daily net assets.
Under the Agreement, personnel of the Advisor provide the Series with advice and
assistance in the choice of investments and the execution of securities
transactions, and otherwise maintain the Series' organization. The Advisor also
provides the Fund with necessary office space and fund administration services.
The salaries of all officers of the Fund (except a percentage of the Fund's
Chief Compliance Officer's salary, which is paid by the Fund, and the Special
Assistant Secretary's salary, which is paid by BISYS), and of all Directors who
are "affiliated persons" of the Fund, or of the Advisor, and all personnel of
the Fund, or of the Advisor, performing services relating to research,
statistical and investment activities, are paid by the Advisor. Each
"non-affiliated" Director receives an annual stipend, which is allocated among
all the active series of the Fund. In addition, these Directors also receive a
per meeting fee for each active series of the Fund plus a fee for each committee
meeting attended.
The Advisor has contractually agreed, until at least February 28, 2006, to waive
its fee and, if necessary, pay other operating expenses of the Series in order
to maintain total expenses for the
14
Notes to Financial Statements (unaudited)
3. TRANSACTIONS WITH AFFILIATES (continued)
Series at no more than 1.05% of average daily net assets each year. Accordingly,
the Advisor did not impose its fee of $6,215 and assumed expenses amounting to
$20,173 for the six months ended April 30, 2005, which is reflected as a
reduction of expenses on the Statement of Operations.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate
of the Advisor, acts as distributor for the Fund's shares. The services of
Manning & Napier Investor Services, Inc. are provided at no additional cost to
the Series.
Effective November 1, 2003, the Master Services Agreement between the Fund and
the Advisor, which covers fund accounting services and transfer agent services,
was amended. Under the amended agreement, for providing these services, the
Fund pays the Advisor an annual fee of 0.15% of the Fund's average daily net
assets up to $900 million, 0.11% for the Fund's average daily net assets between
$900 million and $1.5 billion, and 0.07% for the Fund's average daily net assets
over $1.5 billion. These fee rates are scheduled to be reduced each year
through 2007. Additionally, certain transaction and account-based fees and
out-of-pocket expenses, including charges for reporting relating to the Fund's
Compliance Program, are charged. Expenses not directly attributable to a series
are allocated based on each series' relative net assets or number of accounts,
depending on the expense. The Advisor has an agreement with BISYS Fund Services
Ohio, Inc. ("BISYS") under which BISYS serves as sub-accounting services and
sub-transfer agent.
4. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2005, purchases and sales of securities,
other than United States Government securities and short-term securities, were
$428,501 and $168,073, respectively. There were no purchases or sales of United
States Government securities.
5. CAPITAL STOCK TRANSACTIONS
Transactions in shares of Overseas Series were:
FOR THE SIX MONTHS FOR THE YEAR
ENDED 4/30/05 ENDED 10/31/04
------------------------------------- ------------------
SHARES AMOUNT SHARES AMOUNT
------------------- ---------------- ------- ---------
Sold. . . . 12,188 $ 252,433 10,489 $186,231
Reinvested. 963 19,428 476 7,711
Repurchased (288) (6,023) (291) (5,210)
------------------- ---------------- ------- ---------
Total . . . 12,863 $ 265,838 10,674 $188,732
=================== ================ ======= =========
At April 30, 2005, the retirement plan of the Advisor and its affiliates owned
55,532 shares of the Series (81.3% of shares outstanding) valued at $1,113,972.
6. FINANCIAL INSTRUMENTS
The Series may trade in financial instruments with off-balance sheet risk in the
normal course of its investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. No such investments were held by
the Series on April 30, 2005.
15
Notes to Financial Statements (unaudited)
7. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in
securities of domestic companies and the United States Government. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of foreign companies and foreign governments
and their markets may be less liquid and their prices more volatile than those
of comparable domestic companies and the United States Government.
8. FEDERAL INCOME TAX INFORMATION
The amount and characterization of certain income and capital gains to be
distributed are determined in accordance with federal income tax regulations,
which may differ from accounting principles generally accepted in the United
States of America. The Series may periodically make reclassifications among its
capital accounts to reflect income and gains available for distribution (or
available capital loss carryovers) under income tax regulations, without
impacting the Series' net asset value. Any such reclassifications are not
reflected in the financial highlights.
The final determination of the tax character of current year distributions will
be made at the conclusion of the fiscal year. The tax character of
distributions paid for the year ended October 31, 2004 were as follows:
Ordinary income $7,711
At April 30, 2005, the identified cost of investments for federal income tax
purposes, the resulting gross unrealized appreciation and depreciation, and the
net unrealized appreciation were as follows:
Cost for federal income tax purposes $1,234,051
Unrealized appreciation. . . . . . . $ 180,805
Unrealized depreciation. . . . . . . (25,810)
-----------
Net unrealized appreciation. . . . . $ 154,995
===========
16
(This page intentionally left blank)
17
Literature Requests (unaudited)
PROXY VOTING POLICIES AND PROCEDURES
- --------------------------------------------------------------------------------
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available, without charge,
upon request:
By phone 1-800-466-3863
On the Securities and Exchange
Commission's (SEC) web site http://www.sec.gov
PROXY VOTING RECORD
- --------------------------------------------------------------------------------
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30th is available,
without charge, upon request:
By phone 1-800-466-3863
On the SEC's web site http://www.sec.gov
QUARTERLY PORTFOLIO HOLDINGS
- --------------------------------------------------------------------------------
The Series' complete schedule of portfolio holdings for the 1st and 3rd quarters
of each fiscal year are provided on Form N-Q, and is available, without charge,
upon request:
By phone 1-800-466-3863
On the SEC's web site http:\\www.sec.gov
The Series' Form N-Q may be reviewed and copied at the SEC's Public Reference
Room in Washington, D.C. Information on the operation of the Public Reference
Room may be obtained by calling 1-800-SEC-0330.
PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION (SAI)
- --------------------------------------------------------------------------------
The prospectus and SAI provide additional information about each Series,
including charges, expenses and risks. These documents are available, without
charge, upon request:
By phone 1-800-466-3863
On the SEC's web site http://www.sec.gov
On the Advisor's web site
http://www.manningnapieradvisors.com/www/exeter_fund.asp
ADDITIONAL INFORMATION AVAILABLE AT
WWW.MANNINGNAPIERADVISORS.COM/WWW/EXETER_FUND.ASP
- --------------------------------------------------------------------------------
1. Fund Holdings - month-end
2. Fund Holdings - quarter-end
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
18
Exeter Fund, Inc.
Semi-Annual Report
April 30, 2005
Pro-BlendR Conservative Term Series
Pro-BlendR Moderate Term Series
Pro-BlendR Extended Term Series
Pro-BlendR Maximum Term Series
Renewal of Investment Advisory Agreement (unaudited)
At the Exeter Fund, Inc. (the "Fund") Board of Director's annual in person
meeting, held on November 18, 2004, the Investment Advisory Agreement (the
"Agreement") between the Fund and Manning & Napier Advisor, Inc. (the "Advisor")
was reviewed by the Board for renewal. In connection with the decision whether
to renew the Agreement, a variety of material was prepared for and reviewed by
the Board. In addition, at the meeting of the Board, representatives of the
Advisor presented additional oral and written information to help the Board
evaluate the Advisor's performance under the Agreement over the previous year.
The Board then deliberated the renewal of the Agreement in light of the various
material provided prior to and at the meeting.
In connection with their review and deliberations, the Board considered the
following factors and reached a conclusion with respect to such factors.
- - The Board considered the services provided by the Advisor under the
Agreement including, among others: deciding what securities to purchase and sell
for each Series; arranging for the purchase and sale of such securities by
placing orders with broker-dealers; administering of the affairs of the Fund
(including the books and records of the Fund not maintained by third party
service providers such as custodian or sub-transfer agent); arranging for the
insurance coverage for the Fund; and supervising the preparation of tax returns,
preparation of SEC filings (including registration statements) and reports to
shareholders for the Fund. The Board discussed the quality of these services
with representatives from the Advisor and concluded that the Advisor was
performing its services to the Fund required under the Agreement in a reasonable
manner.
- - The Board considered the investment performance of the various Series of
the Fund. The investment performance for each Series was reviewed on a
cumulative basis since inception and on a one year basis. In addition,
annualized peformance for the following time periods was considered: inception,
three year, five year, ten year, and current market cycle. Market cycle includes
periods of both rising and falling markets. Returns for established benchmark
indices for each Series were provided for each time period. In addition, the
Board considered at the meeting (and considers on a quarterly basis) a peer
group performance analysis consisting of Morningstar universes of mutual funds
with similar investment objectives. The Board discussed the performance with
representatives from the Advisor and concluded that the investment performance
of each of the Fund's Series was reasonable based on the Fund's actual
performance and comparative performance, especially performance over the current
market cycle.
- - The Board considered the costs of the Advisor's services and the profits
of the Advisor as they relate to the Advisor's services to the Fund under the
Agreement. In reviewing the Advisor's costs and profits, the Board discussed
the Advisor's revenues generated from the Fund (on both an actual and adjusted
basis) and its expenses associated with providing the services under the
Agreement. In addition, the Board reviewed the Advisor's expenses associated
with Fund activities outside of the Agreement (such as expense reimbursements
pursuant to expense caps and payments made by the Advisor to third party
platforms on which shares of the Fund are available for purchase). It was noted
by representatives of the Advisor that 11 of the 15 active Series of the Fund
are currently experiencing expenses above the capped expense ratios. After
discussing the above costs and profits, the Board concluded that the Advisor's
profitability relating to its services provided under the Agreement is
reasonable.
- - The Board considered the fees and expenses of the various Series of the
Fund. The Advisor presented the advisory fees and total expenses for each
Series, including the advisory fee adjusted for any expense reimbursements
(either contractually or voluntarily) paid by the Advisor. The advisory fees
and expense ratios of each Series were compared to an average (on
1
Renewal of Investment Advisory Agreement (unaudited)
both a mean and median basis) of similar funds as disclosed on the Morningstar
database. Representatives of the Advisor discussed with the Board the levels of
its advisory fee for the Series of the Fund and as compared to the median and
mean advisory fees for similar funds as listed on Morningstar. Expense ratios
for every Series are currently below the median and mean for similar funds as
listed on Morningstar. Based on their review of the information provided, the
Board concluded that the fees and expenses of each Series of the Fund were
reasonable on a comparative basis.
- - The Board also considered the other benefits the Advisor derives from its
relationship with the Fund. Such other benefits include certain research
products provided by soft dollars. Given the level of soft dollar transactions
involving the Fund, the Board concluded that these additional benefits to the
Advisor were reasonable.
- - In addition to the factors described above, the Board considered the
Advisor's personnel, the Advisor's investment strategies, the Advisor's policies
and procedures relating to compliance with personal securities transactions, the
Advisor's reputation, expertise and resources in domestic and foreign financial
markets. The Board concluded that these factors support the conclusion that the
Advisor performs its services in a reasonable manner.
- - The Board did not consider economies of scale at this time because of the
multiple uses of the Fund (for the Advisor's discretionary investment account
clients in addition to direct investors), the current profitability of the
Advisor's services to the Fund under the Agreement and the overall size of the
Fund complex.
Based on the Board's conclusions regarding the factors described above, the
Board, including a majority of Directors that are "not interested" as defined in
the Investment Company Act of 1940, approved the renewal of the Agreement for
another year. In the course of their deliberations, the Directors did not
identify any particular information that was all important or controlling.
2
Performance Update - Pro-BlendR Conservative Term Series (unaudited)
Average Annual Total Returns
As of April 30, 2005
-------------------------------------------------
One Five Since
Year Year Inception1
----------------------------- ----- -----------
Exeter Fund, Inc. - Pro-BlendR Conservative Term Series2. . . . 5.87% 6.76% 6.33%
Lehman Brothers Intermediate U.S. Government/Credit Bond Index3 3.27% 7.00% 6.24%
15%/85% Blended Index3. . . . . . . . . . . . . . . . . . . . . 3.77% 5.65% 6.88%
The following graph compares the value of a $10,000 investment in the Exeter
Fund, Inc. - Pro-BlendR Conservative Term Series from its inception1 (11/1/95)
to present (4/30/05) to the Lehman Brothers Intermediate U.S. Government/Credit
Bond Index and a 15%/85% Blended Index.
Data for line graph to follow:
Exeter Fund, Inc. Lehman Brothers Intermediate
Date Pro-BlendR Conservative Term Series U.S. Government/Credit Bond Index 15%/85% Blended Index
11/1/95 $10,000 $10,000 $10,000
10/31/96 10,494 10,581 10,790
10/31/97 11,411 11,374 11,904
10/31/98 12,157 12,411 13,197
10/31/99 12,371 12,533 13,695
10/31/00 13,684 13,342 14,604
10/31/01 14,927 15,244 15,907
10/31/02 15,576 16,145 16,457
10/31/03 16,471 17,022 17,812
10/31/04 17,449 17,758 18,722
4/30/05 17,912 17,764 18,802
1Performance numbers for the Series and Indices are calculated from November 1,
1995, the Series' inception date.
2The Series' performance does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of shares. The
Series' performance is historical and may not be indicative of future results.
3The Lehman Brothers Intermediate U.S. Government/Credit Bond Index is a market
value weighted measure of over 2,000 corporate and government investment grade
securities with maturities greater than one year but less than ten years. The
15%/85% Blended Index is 15% Standard & Poor's (S&P) 500 Total Return Index and
85% Lehman Brothers Intermediate U.S. Government/Credit Bond Index. The S&P 500
Total Return Index is an unmanaged capitalization-weighted measure of 500 widely
held common stocks listed on the New York Stock Exchange, American Stock
Exchange and the Over-the-Counter market. Both Indices' returns assume
reinvestment of income and, unlike Series returns, do not reflect any fees or
expenses. Because the Series' asset allocation will vary over time, the
composition of the Series' portfolio may not match the composition of the
comparative Indices' portfolios.
3
Shareholder Expense Example - Pro-BlendR Conservative Term Series (unaudited)
As a shareholder of the Series, you may incur two types of costs: (1)
transaction costs, including potential wire charges on redemptions and (2)
ongoing costs, including management fees and other Series expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Series and to compare these costs with the ongoing costs of
investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (November 1, 2004 to April 30, 2005).
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Series' actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Series' actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid
during the period. You may use this information to compare the ongoing costs of
investing in the Series 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 costs, such as potential
wire charges on redemptions. Therefore, the second line of the table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
11/1/04 4/30/05 11/1/04-4/30/05
-------------- -------------- ----------------
Actual. . . . . . . . . . . $ 1,000.00 $ 1,026.60 $ 5.02
Hypothetical
(5% return before expenses) $ 1,000.00 $ 1,019.84 $ 5.01
*Expenses are equal to the Series' annualized expense ratio (for the six-month
period) of 1.00%, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period). Expenses are based
on the most recent fiscal half year; therefore, the Series' expense ratio may
differ from the expense ratio based on one-year data in the financial
highlights. The Series' total return would have been lower had certain expenses
not been waived during the period.
4
Portfolio Composition - ProBlendR Conservative Term Series (unaudited)
As of April 30, 2005
Data for pie chart to follow:
ASSET ALLOCATION*
Cash, short-term investments, and other assets, less liabilities 13.82%
Common Stocks. . . . . . . . . . . . . . . . . . . . . . . . . . 27.79%
U.S. Government Agencies . . . . . . . . . . . . . . . . . . . . 3.69%
U.S. Treasury Bonds1 . . . . . . . . . . . . . . . . . . . . . . 10.78%
U.S. Treasury Notes2 . . . . . . . . . . . . . . . . . . . . . . 43.04%
Corporate Bonds. . . . . . . . . . . . . . . . . . . . . . . . . 0.88%
*As a percentage of net assets.
1A U.S. Treasury Bond is a long-term obligation of the U.S. Treasury issued with
a maturity period of more than ten years.
2A U.S. Treasury Note is an intermediate-term obligation of the U.S. Treasury
issued with a maturity period between one and ten years.
SECTOR ALLOCATION*
Consumer Discretionary . . 5.27%
Consumer Staples . . . . . 3.75%
Energy . . . . . . . . . . 3.38%
Financials . . . . . . . . 3.05%
Health Care. . . . . . . . 5.29%
Industrials. . . . . . . . 2.03%
Information Technology . . 2.18%
Materials. . . . . . . . . 1.37%
Telecommunication Services 1.15%
Utilities. . . . . . . . . 1.34%
*Including Common Stocks and Corporate Bonds, as a percentage of total
investments.
TOP FIVE STOCK HOLDINGS*
WebMD Corp. . . . . . . . . . . . . . . . 1.21%
Nestle S.A. (Switzerland) . . . . . . . . 1.18%
Unilever plc - ADR (United Kingdom) . . . 1.16%
Vodafone Group plc - ADR (United Kingdom) 1.10%
Schering-Plough Corp. . . . . . . . . . . 1.09%
*As a percentage of total investments.
TOP FIVE BOND HOLDINGS*
U.S. Treasury Bond, 5.50%, 8/15/2028. 10.14%
U.S. Treasury Note, 1.50%, 3/31/2006. 8.43%
U.S. Treasury Note, 3.50%, 11/15/2009 6.26%
U.S. Treasury Note, 1.625%, 9/30/2005 5.05%
U.S. Treasury Note, 3.625%, 5/15/2013 4.71%
*As a percentage of total investments.
5
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------- ------- ---------
COMMON STOCKS - 27.79%
CONSUMER DISCRETIONARY - 4.99%
DIVERSIFIED CONSUMER SERVICES - 0.61%
Weight Watchers International, Inc.*. . . . . . . 4,625 $193,094
----------
HOTELS, RESTAURANTS & LEISURE - 0.43%
Carnival Corp.. . . . . . . . . . . . . . . . . . 2,725 133,198
Shangri-La Asia Ltd. (Hong Kong) (Note 7) . . . . 2,000 3,053
----------
136,251
----------
HOUSEHOLD DURABLES - 0.07%
Hunter Douglas N.V. (Netherlands) (Note 7). . . . 125 5,978
Interface, Inc. - Class A*. . . . . . . . . . . . 875 5,250
Sony Corp. - ADR (Japan) (Note 7) . . . . . . . . 275 10,095
----------
21,323
----------
INTERNET & CATALOG RETAIL - 0.01%
IAC/InterActiveCorp*. . . . . . . . . . . . . . . 175 3,804
----------
LEISURE EQUIPMENT & PRODUCTS - 0.03%
Hasbro, Inc.. . . . . . . . . . . . . . . . . . . 175 3,311
Sega Sammy Holdings, Inc. (Japan) (Note 7). . . . 100 5,886
----------
9,197
----------
MEDIA - 2.52%
Acme Communications, Inc.*. . . . . . . . . . . . 550 2,267
Belo Corp. - Class A. . . . . . . . . . . . . . . 175 4,100
Cablevision Systems Corp. - Class A*. . . . . . . 7,050 182,947
The E.W. Scripps Co. - Class A. . . . . . . . . . 2,675 136,238
Harris Interactive, Inc.* . . . . . . . . . . . . 1,475 6,136
Impresa S.A. (SGPS)* (Portugal) (Note 7). . . . . 500 3,546
Media Capital S.A. (SGPS)* (Portugal) (Note 7). . 550 3,851
News Corp. - Class A. . . . . . . . . . . . . . . 300 4,584
Pearson plc (United Kingdom) (Note 7) . . . . . . 10,175 123,304
PT Multimedia S.A. (SGPS)* (Portugal) (Note 7). . 125 2,957
Reed Elsevier plc - ADR (United Kingdom) (Note 7) 175 6,909
Time Warner, Inc.*. . . . . . . . . . . . . . . . 18,100 304,261
VNU N.V. (Netherlands) (Note 7) . . . . . . . . . 400 11,202
Wolters Kluwer N.V. (Netherlands) (Note 7). . . . 350 6,194
----------
798,496
----------
SPECIALTY RETAIL - 1.31%
Build-A-Bear-Workshop, Inc.*. . . . . . . . . . . 225 6,032
Douglas Holding AG (Germany) (Note 7) . . . . . . 300 10,104
Foot Locker, Inc. . . . . . . . . . . . . . . . . 75 1,999
KOMERI Co. Ltd. (Japan) (Note 7). . . . . . . . . 100 2,533
The accompanying notes are an integral part of the financial statements.
6
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------- --------- ---------
CONSUMER DISCRETIONARY (continued)
SPECIALTY RETAIL (continued)
Office Depot, Inc.* . . . . . . . . . . . . . . . . . . . . . 5,675 $111,117
RadioShack Corp.. . . . . . . . . . . . . . . . . . . . . . . 6,225 155,438
Staples, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 6,637 126,568
----------
413,791
----------
TEXTILES, APPAREL & LUXURY GOODS - 0.01%
LVMH S.A. (Louis Vuitton Moet Hennessy) (France) (Note 7) . . 50 3,507
----------
TOTAL CONSUMER DISCRETIONARY. . . . . . . . . . . . . . . . . 1,579,463
----------
CONSUMER STAPLES - 3.73%
BEVERAGES - 0.41%
The Coca-Cola Co. . . . . . . . . . . . . . . . . . . . . . . 2,875 124,890
Diageo plc (United Kingdom) (Note 7). . . . . . . . . . . . . 125 1,846
Scottish & Newcastle plc (United Kingdom) (Note 7). . . . . . 225 1,946
----------
128,682
----------
FOOD & STAPLES RETAILING - 0.51%
Carrefour S.A. (France) (Note 7). . . . . . . . . . . . . . . 3,150 152,027
Metro AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . 50 2,648
Pathmark Stores, Inc.*. . . . . . . . . . . . . . . . . . . . 700 5,404
Tesco plc (United Kingdom) (Note 7) . . . . . . . . . . . . . 350 2,057
----------
162,136
----------
FOOD PRODUCTS - 2.37%
Cadbury Schweppes plc (United Kingdom) (Note 7) . . . . . . . 675 6,763
Groupe Danone (France) (Note 7) . . . . . . . . . . . . . . . 50 4,659
The Hain Celestial Group, Inc.* . . . . . . . . . . . . . . . 125 2,219
Nestle S.A. (Switzerland) (Note 7). . . . . . . . . . . . . . 1,425 373,180
Unilever plc - ADR (United Kingdom) (Note 7). . . . . . . . . 9,489 363,998
----------
750,819
----------
HOUSEHOLD PRODUCTS - 0.04%
Henkel KgaA (Germany) (Note 7). . . . . . . . . . . . . . . . 50 4,292
Kimberly-Clark de Mexico S.A. de C.V. - ADR (Mexico) (Note 7) 500 7,102
Reckitt Benckiser plc (United Kingdom) (Note 7) . . . . . . . 75 2,423
----------
13,817
----------
The accompanying notes are an integral part of the financial statements.
7
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES SHARES (NOTE 2)
- --------------------------------------------------------------- --------- ---------
CONSUMER STAPLES (continued)
PERSONAL PRODUCTS - 0.40%
Clarins S.A. (France) (Note 7). . . . . . . . . . . . . . . . . 165 $ 9,928
The Estee Lauder Companies, Inc. - Class A. . . . . . . . . . . 2,700 103,707
Shiseido Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . . . 1,000 12,744
----------
126,379
----------
TOTAL CONSUMER STAPLES. . . . . . . . . . . . . . . . . . . . . 1,181,833
----------
ENERGY - 3.26%
ENERGY EQUIPMENT & SERVICES - 2.52%
Abbot Group plc (United Kingdom) (Note 7) . . . . . . . . . . . 2,800 11,328
Atwood Oceanics, Inc.*. . . . . . . . . . . . . . . . . . . . . 75 4,280
Baker Hughes, Inc.. . . . . . . . . . . . . . . . . . . . . . . 2,675 118,021
Compagnie Generale de Geophysique S.A. (CGG)* (France) (Note 7) 50 3,925
Cooper Cameron Corp.* . . . . . . . . . . . . . . . . . . . . . 1,375 75,542
Helmerich & Payne, Inc. . . . . . . . . . . . . . . . . . . . . 175 6,727
National-Oilwell Varco, Inc.* . . . . . . . . . . . . . . . . . 1,216 48,324
Pride International, Inc.*. . . . . . . . . . . . . . . . . . . 425 9,478
Schlumberger Ltd. . . . . . . . . . . . . . . . . . . . . . . . 4,275 292,453
Smedvig ASA - Class A (Norway) (Note 7) . . . . . . . . . . . . 475 8,296
Transocean, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 1,975 91,581
Weatherford International Ltd.* . . . . . . . . . . . . . . . . 2,450 127,768
----------
797,723
----------
OIL, GAS & CONSUMABLE FUELS - 0.74%
Amerada Hess Corp.. . . . . . . . . . . . . . . . . . . . . . . 2,175 203,689
BP plc (United Kingdom) (Note 7). . . . . . . . . . . . . . . . 175 1,783
Eni S.p.A. (Italy) (Note 7) . . . . . . . . . . . . . . . . . . 400 10,044
Forest Oil Corp.* . . . . . . . . . . . . . . . . . . . . . . . 125 4,816
Petroleo Brasileiro S.A. (Petrobras) - ADR (Brazil) (Note 7). . 175 6,431
Shell Transport & Trading Co. plc (United Kingdom) (Note 7) . . 250 2,240
Total S.A. (France) (Note 7). . . . . . . . . . . . . . . . . . 25 5,550
----------
234,553
----------
TOTAL ENERGY. . . . . . . . . . . . . . . . . . . . . . . . . . 1,032,276
----------
FINANCIALS - 2.71%
CAPITAL MARKETS - 0.78%
The Bank of New York Co., Inc.. . . . . . . . . . . . . . . . . 4,350 121,539
Deutsche Bank AG (Germany) (Note 7) . . . . . . . . . . . . . . 150 12,230
SEI Investments Co. . . . . . . . . . . . . . . . . . . . . . . 3,475 114,015
----------
247,784
----------
The accompanying notes are an integral part of the financial statements.
8
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------------ ------- ---------
FINANCIALS (continued)
COMMERCIAL BANKS - 1.40%
Banca Intesa S.p.A. (Italy) (Note 7) . . . . . . . . . . . . . . . 1,075 $ 5,102
Banco BPI S.A. (Portugal) (Note 7) . . . . . . . . . . . . . . . . 800 3,212
Bayerische Hypo-und Vereinsbank AG (HVB Group)* (Germany) (Note 7) 400 9,472
BNP Paribas S.A. (France) (Note 7) . . . . . . . . . . . . . . . . 50 3,275
Commerzbank AG* (Germany) (Note 7) . . . . . . . . . . . . . . . . 375 8,166
Metropolitan Bank & Trust Co. (Philippines) (Note 7) . . . . . . . 8,000 4,660
PNC Financial Services Group, Inc. . . . . . . . . . . . . . . . . 2,325 123,760
Societe Generale (France) (Note 7) . . . . . . . . . . . . . . . . 25 2,474
U.S. Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,625 129,037
UniCredito Italiano S.p.A. (Italy) (Note 7). . . . . . . . . . . . 875 4,876
Wachovia Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,900 148,422
----------
442,456
----------
CONSUMER FINANCE - 0.00%**
MoneyGram International, Inc.. . . . . . . . . . . . . . . . . . . 75 1,455
----------
DIVERSIFIED FINANCIAL SERVICES - 0.47%
ING Groep N.V. (Netherlands) (Note 7). . . . . . . . . . . . . . . 225 6,110
Principal Financial Group, Inc.. . . . . . . . . . . . . . . . . . 3,650 142,642
----------
148,752
----------
INSURANCE - 0.04%
Allianz AG (Germany) (Note 7). . . . . . . . . . . . . . . . . . . 25 2,968
Assicurazioni Generali S.p.A. (Italy) (Note 7) . . . . . . . . . . 150 4,593
Axa (France) (Note 7). . . . . . . . . . . . . . . . . . . . . . . 200 4,888
----------
12,449
----------
REAL ESTATE - 0.01%
SM Prime Holdings, Inc. (Philippines) (Note 7) . . . . . . . . . . 32,550 4,454
----------
THRIFTS & MORTGAGE FINANCE - 0.01%
Flagstar Bancorp, Inc. . . . . . . . . . . . . . . . . . . . . . . 100 1,904
----------
TOTAL FINANCIALS . . . . . . . . . . . . . . . . . . . . . . . . . 859,254
----------
HEALTH CARE - 5.26%
BIOTECHNOLOGY - 0.19%
BioMarin Pharmaceutical, Inc.* . . . . . . . . . . . . . . . . . . 1,150 6,819
Caliper Life Sciences, Inc.* . . . . . . . . . . . . . . . . . . . 1,100 6,369
Chiron Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . . 325 11,099
Diversa Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . . 1,750 9,188
Millennium Pharmaceuticals, Inc.*. . . . . . . . . . . . . . . . . 1,725 15,111
Neurocrine Biosciences, Inc.*. . . . . . . . . . . . . . . . . . . 125 4,370
Xenogen Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . . 1,550 6,913
----------
59,869
----------
The accompanying notes are an integral part of the financial statements.
9
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES SHARES (NOTE 2)
- --------------------------------------------------------- ------- ---------
HEALTH CARE (continued)
HEALTH CARE EQUIPMENT & SUPPLIES - 0.16%
Advanced Neuromodulation Systems, Inc.* . . . . . . . . . 275 $ 8,280
Conceptus, Inc.*. . . . . . . . . . . . . . . . . . . . . 750 4,582
DENTSPLY International, Inc.. . . . . . . . . . . . . . . 275 15,032
Millipore Corp.*. . . . . . . . . . . . . . . . . . . . . 125 6,028
Thermo Electron Corp.*. . . . . . . . . . . . . . . . . . 300 7,494
Varian, Inc.* . . . . . . . . . . . . . . . . . . . . . . 200 6,634
Viasys Healthcare, Inc.*. . . . . . . . . . . . . . . . . 125 2,655
----------
50,705
----------
HEALTH CARE PROVIDERS & SERVICES - 1.56%
Allscripts Healthcare Solutions, Inc.*. . . . . . . . . . 175 2,291
American Healthways, Inc.*. . . . . . . . . . . . . . . . 150 5,603
AmerisourceBergen Corp. . . . . . . . . . . . . . . . . . 125 7,660
AMN Healthcare Services, Inc.*. . . . . . . . . . . . . . 800 11,816
Cross Country Healthcare, Inc.* . . . . . . . . . . . . . 950 15,304
Eclipsys Corp.* . . . . . . . . . . . . . . . . . . . . . 900 12,159
Express Scripts, Inc.*. . . . . . . . . . . . . . . . . . 150 13,446
HCA, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 150 8,376
McKesson Corp.. . . . . . . . . . . . . . . . . . . . . . 225 8,325
Omnicell, Inc.* . . . . . . . . . . . . . . . . . . . . . 2,425 14,914
Triad Hospitals, Inc.*. . . . . . . . . . . . . . . . . . 225 11,531
WebMD Corp.*. . . . . . . . . . . . . . . . . . . . . . . 40,175 381,663
----------
493,088
----------
PHARMACEUTICALS - 3.35%
AstraZeneca plc (United Kingdom) (Note 7) . . . . . . . . 25 1,088
AstraZeneca plc - ADR (United Kingdom) (Note 7) . . . . . 125 5,494
Bristol-Myers Squibb Co.. . . . . . . . . . . . . . . . . 400 10,400
GlaxoSmithKline plc (United Kingdom) (Note 7) . . . . . . 725 18,153
GlaxoSmithKline plc - ADR (United Kingdom) (Note 7) . . . 4,275 216,101
Merck & Co., Inc. . . . . . . . . . . . . . . . . . . . . 325 11,017
Novartis AG - ADR (Switzerland) (Note 7). . . . . . . . . 5,475 266,797
Pfizer, Inc.. . . . . . . . . . . . . . . . . . . . . . . 4,825 131,095
Roche Holding AG - ADR (Switzerland) (Note 7) . . . . . . 100 6,031
Sanofi-Aventis (France) (Note 7). . . . . . . . . . . . . 41 3,609
Sanofi-Aventis - ADR (France) (Note 7). . . . . . . . . . 125 5,546
Schering AG (Germany) (Note 7). . . . . . . . . . . . . . 300 19,691
Schering-Plough Corp. . . . . . . . . . . . . . . . . . . 16,425 342,790
Shire Pharmaceuticals Group plc (United Kingdom) (Note 7) 200 2,086
The accompanying notes are an integral part of the financial statements.
10
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------------------ --------- ---------
HEALTH CARE (continued)
PHARMACEUTICALS (continued)
Watson Pharmaceuticals, Inc.*. . . . . . . . . . . . . . . . . . . . . . 350 $ 10,500
Wyeth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 11,235
----------
1,061,633
----------
TOTAL HEALTH CARE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,665,295
----------
INDUSTRIALS - 1.91%
AEROSPACE & DEFENSE - 0.34%
Empresa Brasileira de Aeronautica S.A. (Embraer) - ADR (Brazil) (Note 7) 3,725 107,429
----------
AIRLINES - 0.44%
AirTran Holdings, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . 650 5,395
Deutsche Lufthansa AG* (Germany) (Note 7). . . . . . . . . . . . . . . . 225 2,896
JetBlue Airways Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . 100 2,005
Southwest Airlines Co. . . . . . . . . . . . . . . . . . . . . . . . . . 8,650 128,712
----------
139,008
----------
COMMERCIAL SERVICES & SUPPLIES - 0.09%
Aggreko plc (United Kingdom) (Note 7). . . . . . . . . . . . . . . . . . 500 1,739
BWT AG (Austria) (Note 7). . . . . . . . . . . . . . . . . . . . . . . . 125 3,900
Herman Miller, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . 100 2,860
Quebecor World, Inc. (Canada) (Note 7) . . . . . . . . . . . . . . . . . 200 4,424
Tomra Systems ASA (Norway) (Note 7). . . . . . . . . . . . . . . . . . . 3,975 14,545
----------
27,468
----------
CONSTRUCTION & ENGINEERING - 0.04%
Infrasource Services, Inc.*. . . . . . . . . . . . . . . . . . . . . . . 175 1,759
Insituform Technologies, Inc. - Class A* . . . . . . . . . . . . . . . . 250 3,727
Koninklijke Boskalis Westminster N.V. (Netherlands) (Note 7) . . . . . . 236 8,599
----------
14,085
----------
ELECTRICAL EQUIPMENT - 0.03%
Gamesa Corporacion Tecnologica S.A. (Spain) (Note 7) . . . . . . . . . . 275 3,536
Global Power Equipment Group, Inc.*. . . . . . . . . . . . . . . . . . . 300 2,718
Plug Power, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . 575 3,191
----------
9,445
----------
INDUSTRIAL CONGLOMERATES - 0.02%
Siemens AG (Germany) (Note 7). . . . . . . . . . . . . . . . . . . . . . 100 7,308
----------
MACHINERY - 0.46%
AGCO Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,225 124,270
Albany International Corp. - Class A . . . . . . . . . . . . . . . . . . 108 3,387
The accompanying notes are an integral part of the financial statements.
11
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES SHARES (NOTE 2)
- ---------------------------------------------------------- ------- ---------
INDUSTRIALS (continued)
MACHINERY (continued)
Gardner Denver, Inc.*. . . . . . . . . . . . . . . . . . . 75 $ 2,741
Lindsay Manufacturing Co.. . . . . . . . . . . . . . . . . 125 2,332
MAN AG (Germany) (Note 7). . . . . . . . . . . . . . . . . 125 5,240
Wabtec Corp. . . . . . . . . . . . . . . . . . . . . . . . 300 6,000
----------
143,970
----------
ROAD & RAIL - 0.49%
CSX Corp.. . . . . . . . . . . . . . . . . . . . . . . . . 3,850 154,500
----------
TOTAL INDUSTRIALS. . . . . . . . . . . . . . . . . . . . . 603,213
----------
INFORMATION TECHNOLOGY - 2.09%
COMMUNICATIONS EQUIPMENT - 0.63%
Cisco Systems, Inc.* . . . . . . . . . . . . . . . . . . . 10,225 176,688
Nokia Oyj - ADR (Finland) (Note 7) . . . . . . . . . . . . 775 12,384
Polycom, Inc.* . . . . . . . . . . . . . . . . . . . . . . 450 6,867
Scientific-Atlanta, Inc. . . . . . . . . . . . . . . . . . 125 3,823
----------
199,762
----------
COMPUTERS & PERIPHERALS - 0.04%
EMC Corp.* . . . . . . . . . . . . . . . . . . . . . . . . 400 5,248
Logitech International S.A. - ADR* (Switzerland) (Note 7). 125 7,244
----------
12,492
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.04%
Digital Theater Systems, Inc. (DTS)* . . . . . . . . . . . 300 5,070
Mettler-Toledo International, Inc.* (Switzerland) (Note 7) 75 3,439
Solectron Corp.* . . . . . . . . . . . . . . . . . . . . . 1,575 5,197
----------
13,706
----------
INTERNET SOFTWARE & SERVICES - 0.02%
Blue Coat Systems, Inc.* . . . . . . . . . . . . . . . . . 450 6,480
Online Resources Corp.*. . . . . . . . . . . . . . . . . . 150 1,305
----------
7,785
----------
IT SERVICES - 0.40%
The BISYS Group, Inc.*1. . . . . . . . . . . . . . . . . . 150 2,118
First Data Corp. . . . . . . . . . . . . . . . . . . . . . 3,275 124,548
----------
126,666
----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 0.57%
ATI Technologies, Inc.* (Canada) (Note 7). . . . . . . . . 300 4,440
Cabot Microelectronics Corp.*. . . . . . . . . . . . . . . 300 8,637
The accompanying notes are an integral part of the financial statements.
12
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------------- ------- ---------
INFORMATION TECHNOLOGY (continued)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (continued)
Cymer, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 $ 2,479
Exar Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . . . . 375 4,759
Mindspeed Technologies, Inc.* . . . . . . . . . . . . . . . . . . . 600 816
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR (Taiwan) (Note 7) 1,127 9,703
Texas Instruments, Inc. . . . . . . . . . . . . . . . . . . . . . . 5,675 141,648
Zoran Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . 775 8,199
----------
180,681
----------
SOFTWARE - 0.39%
Amdocs Ltd.* (Guernsey) (Note 7). . . . . . . . . . . . . . . . . . 400 10,684
Blackbaud, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 750 9,788
Business Objects S.A. - ADR* (France) (Note 7). . . . . . . . . . . 550 14,196
F-Secure Oyj* (Finland) (Note 7). . . . . . . . . . . . . . . . . . 600 1,467
Opsware, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . . . 450 2,151
SAP AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . . . 25 3,906
SAP AG - ADR (Germany) (Note 7) . . . . . . . . . . . . . . . . . . 125 4,929
Secure Computing Corp.* . . . . . . . . . . . . . . . . . . . . . . 250 2,213
Synopsys, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . . 3,825 62,883
Verity, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,175 9,635
----------
121,852
----------
TOTAL INFORMATION TECHNOLOGY. . . . . . . . . . . . . . . . . . . . 662,944
----------
MATERIALS - 1.36%
CHEMICALS - 1.19%
Air Liquide S.A. (France) (Note 7). . . . . . . . . . . . . . . . . 27 4,795
Bayer AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . . 175 5,736
Engelhard Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200 128,646
Lanxess* (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . . 17 350
Lonza Group AG (Switzerland) (Note 7) . . . . . . . . . . . . . . . 2,325 139,379
Minerals Technologies, Inc. . . . . . . . . . . . . . . . . . . . . 1,500 97,980
----------
376,886
----------
PAPER & FOREST PRODUCTS - 0.17%
Aracruz Celulose S.A. - ADR (Brazil) (Note 7) . . . . . . . . . . . 1,525 46,817
Sappi Ltd. - ADR (South Africa) (Note 7). . . . . . . . . . . . . . 625 6,238
----------
53,055
----------
TOTAL MATERIALS . . . . . . . . . . . . . . . . . . . . . . . . . . 429,941
----------
TELECOMMUNICATION SERVICES - 1.15%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.04%
CT Communications, Inc. . . . . . . . . . . . . . . . . . . . . . . 50 574
D&E Communications, Inc.. . . . . . . . . . . . . . . . . . . . . . 25 208
The accompanying notes are an integral part of the financial statements.
13
Investment Portfolio - April 30, 2005 (unaudited)
SHARES/ VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------- ----------------- ---------
TELECOMMUNICATION SERVICES (continued)
DIVERSIFIED TELECOMMUNICATION SERVICES (continued)
Deutsche Telekom AG (Germany) (Note 7). . . . . . . . . . . . . . . 150 $ 2,799
Philippine Long Distance Telephone Co. (Philippines) (Note 7) . . . 100 2,552
Telecom Italia S.p.A. (Italy) (Note 7). . . . . . . . . . . . . . . 1,732 5,835
----------
11,968
----------
WIRELESS TELECOMMUNICATION SERVICES - 1.11%
Globe Telecom, Inc. (Philippines) (Note 7). . . . . . . . . . . . . 150 2,247
NTT DoCoMo, Inc. (Japan) (Note 7) . . . . . . . . . . . . . . . . . 2 3,091
Vodafone Group plc - ADR (United Kingdom) (Note 7). . . . . . . . . 13,250 346,355
----------
351,693
----------
TOTAL TELECOMMUNICATION SERVICES. . . . . . . . . . . . . . . . . . 363,661
----------
UTILITIES - 1.33%
ELECTRIC UTILITIES - 0.82%
Allegheny Energy, Inc.* . . . . . . . . . . . . . . . . . . . . . . 10,175 248,677
E.ON AG (Germany) (Note 7). . . . . . . . . . . . . . . . . . . . . 100 8,398
Westar Energy, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 100 2,290
----------
259,365
----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.49%
NRG Energy, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . 5,025 156,277
----------
MULTI-UTILITIES - 0.02%
Aquila, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,400 4,816
National Grid Transco plc (United Kingdom) (Note 7) . . . . . . . . 200 1,965
----------
6,781
----------
TOTAL UTILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . 422,423
----------
TOTAL COMMON STOCKS
(Identified Cost $7,874,552). . . . . . . . . . . . . . . . . . . . 8,800,303
----------
CORPORATE BONDS - 0.88%
CONSUMER DISCRETIONARY - 0.26%
MEDIA - 0.17%
AOL Time Warner (now known as Time Warner, Inc.), 6.75%, 4/15/2011. $ 25,000 27,464
Comcast Cable Communications, Inc., 6.75%, 1/30/2011. . . . . . . . 25,000 27,440
----------
54,904
----------
MULTILINE RETAIL - 0.09%
Target Corp., 5.875%, 3/1/2012. . . . . . . . . . . . . . . . . . . 25,000 26,801
----------
The accompanying notes are an integral part of the financial statements.
14
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------------------------------------------- ----------------- ----------
TOTAL CONSUMER DISCRETIONARY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 81,705
-----------
ENERGY - 0.10%
ENERGY EQUIPMENT & SERVICES - 0.10%
Transocean Sedco (now known as Transocean, Inc.), 6.625%, 4/15/2011 (Cayman Islands) (Note 7) $ 30,000 32,875
-----------
FINANCIALS - 0.33%
COMMERCIAL BANKS - 0.33%
Bank of America Corp., 7.40%, 1/15/2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000 34,128
U.S. Bank National Association, 6.375%, 8/1/2011. . . . . . . . . . . . . . . . . . . . . . . 30,000 32,911
Wachovia Corp., 5.25%, 8/1/2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000 35,847
-----------
TOTAL FINANCIALS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,886
-----------
INDUSTRIALS - 0.11%
INDUSTRIAL CONGLOMERATES - 0.11%
General Electric Capital Corp., 6.75%, 3/15/2032. . . . . . . . . . . . . . . . . . . . . . . 30,000 35,802
-----------
INFORMATION TECHNOLOGY - 0.08%
IT SERVICES - 0.08%
First Data Corp., 3.90%, 10/1/2009. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 24,531
-----------
TOTAL CORPORATE BONDS
(Identified Cost $278,571). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277,799
-----------
U.S. TREASURY SECURITIES - 53.82%
U.S. TREASURY BONDS - 10.78%
U.S. Treasury Bond, 6.875%, 8/15/2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170,000 220,323
U.S. Treasury Bond, 5.50%, 8/15/2028. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,835,000 3,192,255
-----------
TOTAL U.S. TREASURY BONDS
(Identified Cost $3,243,885). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,412,578
-----------
U.S. TREASURY NOTES - 43.04%
U.S. Treasury Note, 6.50%, 5/15/2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 625,000 625,936
U.S. Treasury Note, 1.50%, 7/31/2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000 597,961
U.S. Treasury Note, 1.625%, 9/30/2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600,000 1,590,688
U.S. Treasury Note, 1.875%, 12/31/2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 495,488
U.S. Treasury Note, 5.625%, 2/15/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 10,182
U.S. Treasury Note, 1.50%, 3/31/2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,700,000 2,654,859
U.S. Treasury Note, 7.00%, 7/15/2006. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 26,026
U.S. Treasury Note, 6.50%, 10/15/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000 15,624
U.S. Treasury Note, 3.50%, 11/15/2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700,000 699,535
U.S. Treasury Note, 4.375%, 5/15/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000 507,051
U.S. Treasury Note, 6.625%, 5/15/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35,000 37,028
U.S. Treasury Note, 3.25%, 8/15/2007. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,050,000 1,040,526
U.S. Treasury Note, 6.125%, 8/15/2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000 15,806
U.S. Treasury Note, 3.00%, 2/15/2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000 392,344
U.S. Treasury Note, 5.50%, 2/15/2008. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90,000 94,254
The accompanying notes are an integral part of the financial statements.
15
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------- ----------------- -----------
U.S. TREASURY NOTES (continued)
U.S. Treasury Note, 5.625%, 5/15/2008. . . . . . . . . . $ 10,000 $ 10,535
U.S. Treasury Note, 3.25%, 8/15/2008 . . . . . . . . . . 300,000 295,160
Interest Stripped - Principal Payment, 2/15/2009 . . . . 17,000 14,742
U.S. Treasury Note, 3.50%, 11/15/2009. . . . . . . . . . 2,000,000 1,970,234
U.S. Treasury Note, 5.00%, 2/15/2011 . . . . . . . . . . 1,000,000 1,053,906
U.S. Treasury Note, 3.625%, 5/15/2013. . . . . . . . . . 1,525,000 1,483,241
------------
TOTAL U.S. TREASURY NOTES
(Identified Cost $13,639,862). . . . . . . . . . . . . . 13,631,126
------------
TOTAL U.S. TREASURY SECURITIES
(Identified Cost $16,883,747). . . . . . . . . . . . . . 17,043,704
------------
U.S. GOVERNMENT AGENCIES - 3.69%
MORTGAGE BACKED SECURITIES - 3.61%
Fannie Mae, TBA2, 5.00%, 6/1/2020. . . . . . . . . . . . 45,000 45,225
Fannie Mae, TBA2, 4.50%, 7/1/2020. . . . . . . . . . . . 55,000 54,209
Fannie Mae, TBA2, 5.00%, 7/1/2033. . . . . . . . . . . . 100,000 98,531
Fannie Mae, TBA2, 5.50%, 5/1/2035. . . . . . . . . . . . 155,000 156,453
Fannie Mae, TBA2, 6.00%, 5/1/2035. . . . . . . . . . . . 65,000 66,727
Fannie Mae, TBA2, 6.50%, 5/1/2035. . . . . . . . . . . . 50,000 51,984
Federal Home Loan Mortgage Corp., TBA2, 5.00%, 6/1/2020. 40,000 40,213
Federal Home Loan Mortgage Corp., TBA2, 4.50%, 7/1/2020. 60,000 59,138
Federal Home Loan Mortgage Corp., TBA2, 6.00%, 5/1/2035. 35,000 35,919
Federal Home Loan Mortgage Corp., TBA2, 5.00%, 6/1/2035. 70,000 69,169
Federal Home Loan Mortgage Corp., TBA2, 5.50%, 6/1/2035. 90,000 90,759
GNMA, TBA2, 5.50%, 5/15/2033 . . . . . . . . . . . . . . 45,000 45,759
GNMA, TBA2, 5.00%, 6/15/2033 . . . . . . . . . . . . . . 25,000 24,898
GNMA, TBA2, 6.00%, 5/1/2033. . . . . . . . . . . . . . . 25,000 25,773
GNMA, TBA2, 6.50%, 5/1/2035. . . . . . . . . . . . . . . 30,000 31,397
GNMA, Pool #365225, 9.00%, 11/15/2024. . . . . . . . . . 2,219 2,459
GNMA, Pool #398655, 6.50%, 5/15/2026 . . . . . . . . . . 3,517 3,684
GNMA, Pool #452826, 9.00%, 1/15/2028 . . . . . . . . . . 4,187 4,642
GNMA, Pool #460820, 6.00%, 6/15/2028 . . . . . . . . . . 16,650 17,184
GNMA, Pool #458983, 6.00%, 1/15/2029 . . . . . . . . . . 56,828 58,652
GNMA, Pool #530481, 8.00%, 8/15/2030 . . . . . . . . . . 28,950 31,346
GNMA, Pool #577796, 6.00%, 1/15/2032 . . . . . . . . . . 123,057 127,007
------------
TOTAL MORTGAGE BACKED SECURITIES
(Identified Cost $1,130,495) . . . . . . . . . . . . . . 1,141,128
------------
The accompanying notes are an integral part of the financial statements.
16
Investment Portfolio - April 30, 2005 (unaudited)
PRINCIPAL AMOUNT/ VALUE
PRO-BLENDR CONSERVATIVE TERM SERIES SHARES (NOTE 2)
- -------------------------------------------------------- ------------------ -----------
OTHER AGENCIES - 0.08%
Fannie Mae, 5.25%, 1/15/2009 . . . . . . . . . . . . . . $ 15,000 $ 15,572
Fannie Mae, 6.00%, 12/15/2005. . . . . . . . . . . . . . 10,000 10,155
------------
TOTAL OTHER AGENCIES
(Identified Cost $26,129). . . . . . . . . . . . . . . . 25,727
------------
TOTAL U.S. GOVERNMENT AGENCIES
(Identified Cost $1,156,624) . . . . . . . . . . . . . . 1,166,855
------------
SHORT-TERM INVESTMENTS - 13.28%
Dreyfus Treasury Cash Management - Institutional Shares. 220,201 220,201
Fannie Mae Discount Note, 6/6/2005 . . . . . . . . . . . $ 1,500,000 1,495,740
Federal Home Loan Bank Discount Note, 6/15/2005. . . . . 85,000 84,706
Federal Home Loan Bank Discount Note, 6/16/2005. . . . . 1,200,000 1,195,676
Federal Home Loan Bank Discount Note, 7/18/2005. . . . . 115,000 114,282
U.S. Treasury Bill, 6/16/2005. . . . . . . . . . . . . . 1,100,000 1,096,318
------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $4,206,906) . . . . . . . . . . . . . . 4,206,923
------------
TOTAL INVESTMENTS - 99.46%
(Identified Cost $30,400,400). . . . . . . . . . . . . . 31,495,584
OTHER ASSETS, LESS LIABILITIES - 0.54% . . . . . . . . . 172,037
------------
NET ASSETS - 100%. . . . . . . . . . . . . . . . . . . . $ 31,667,621
============
*Non-income producing security
**Less than 0.01%
1A subsidiary of the company serves as the Fund's sub-accounting services and
sub-transfer agent. An employee of the company serves as an officer of the
Fund.
2Security purchased on a forward commitment or when-issued basis. TBA - to be
announced.
ADR - American Depository Receipt
The accompanying notes are an integral part of the financial statements.
17
Statement of Assets and Liabilities - Pro-BlendR Conservative Term Series
(unaudited)
April 30, 2005
ASSETS:
Investments, at value (identified cost $30,400,400) (Note 2) . $31,495,584
Foreign currency, at value (cost $763) . . . . . . . . . . . . 761
Receivable for securities sold . . . . . . . . . . . . . . . . 1,378,269
Interest receivable. . . . . . . . . . . . . . . . . . . . . . 175,142
Receivable for fund shares sold. . . . . . . . . . . . . . . . 51,338
Dividends receivable . . . . . . . . . . . . . . . . . . . . . 8,382
Foreign tax reclaims receivable. . . . . . . . . . . . . . . . 3,383
-----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . 33,112,859
-----------
LIABILITIES:
Accrued management fees (Note 3) . . . . . . . . . . . . . . . 13,271
Accrued fund accounting and transfer agent fees (Note 3) . . . 4,729
Accrued chief compliance officer services (Note 3) . . . . . . 600
Payable for securities purchased . . . . . . . . . . . . . . . 1,403,011
Audit fees payable . . . . . . . . . . . . . . . . . . . . . . 16,036
Payable for fund shares repurchased. . . . . . . . . . . . . . 5,075
Other payables and accrued expenses. . . . . . . . . . . . . . 2,516
-----------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . 1,445,238
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . $31,667,621
===========
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . $ 27,220
Additional paid-in-capital . . . . . . . . . . . . . . . . . . 29,755,057
Undistributed net investment income. . . . . . . . . . . . . . 202,502
Accumulated net realized gain on investments and other assets
and liabilities. . . . . . . . . . . . . . . . . . . . . . . . 587,580
Net unrealized appreciation on investments and other assets
and liabilities. . . . . . . . . . . . . . . . . . . . . . . . 1,095,262
-----------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . $31,667,621
===========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE - CLASS A ($31,667,621/2,721,940 shares) . . . $ 11.63
===========
The accompanying notes are an integral part of the financial statements.
18
Statement of Operations - Pro-BlendR Conservative Term Series (unaudited)
For the Six Months Ended April 30, 2005
INVESTMENT INCOME:
Interest. . . . . . . . . . . . . . . . . . . . . . . . $328,402
Dividends (net of foreign tax withheld, $4,709) . . . . 77,470
---------
Total Investment Income . . . . . . . . . . . . . . . . 405,872
---------
EXPENSES:
Management fees (Note 3). . . . . . . . . . . . . . . . 120,493
Fund accounting and transfer agent fees (Note 3). . . . 24,647
Directors' fees (Note 3). . . . . . . . . . . . . . . . 3,352
Chief compliance officer services (Note 3). . . . . . . 2,343
Audit fees. . . . . . . . . . . . . . . . . . . . . . . 12,978
Registration and filing fees. . . . . . . . . . . . . . 9,993
Custodian fees. . . . . . . . . . . . . . . . . . . . . 6,154
Miscellaneous . . . . . . . . . . . . . . . . . . . . . 4,351
---------
Total Expenses. . . . . . . . . . . . . . . . . . . . . 184,311
Less reduction of expenses (Note 3) . . . . . . . . . . (33,469)
---------
Net Expenses. . . . . . . . . . . . . . . . . . . . . . 150,842
---------
NET INVESTMENT INCOME . . . . . . . . . . . . . . . . . 255,030
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on -
Investments . . . . . . . . . . . . . . . . . . . . . . 620,128
Foreign currency and other assets and liabilities . . . (61)
---------
620,067
---------
Net change in unrealized appreciation on -
Investments . . . . . . . . . . . . . . . . . . . . . . (80,392)
Foreign currency and other assets and liabilities . . . (2)
---------
(80,394)
---------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS. 539,673
---------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS. . $794,703
=========
The accompanying notes are an integral part of the financial statements.
19
Statements of Changes in Net Assets - Pro-BlendR Conservative Term Series
FOR THE SIX
MONTHS ENDED FOR THE
4/30/05 YEAR ENDED
(UNAUDITED) 10/31/04
------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . $ 255,030 $ 407,718
Net realized gain on investments. . . . . . . . . . . . . 620,067 215,957
Net change in unrealized appreciation on investments. . . (80,394) 686,553
-------------- ------------
Net increase from operations. . . . . . . . . . . . . . . 794,703 1,310,228
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
(NOTE 8):
From net investment income. . . . . . . . . . . . . . . . (325,022) (316,566)
From net realized gain on investments . . . . . . . . . . (234,753) (478,056)
-------------- ------------
Total distributions to shareholders . . . . . . . . . . . (559,775) (794,622)
-------------- ------------
CAPITAL STOCK ISSUED AND
REPURCHASED:
Net increase from capital share transactions (Note 5) . . 4,588,491 6,337,844
-------------- ------------
Net increase in net assets. . . . . . . . . . . . . . . . 4,823,419 6,853,450
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . . . . . . 26,844,202 19,990,752
-------------- ------------
END OF PERIOD (including undistributed net
investment income of $202,502 and $272,494, respectively) $ 31,667,621 $26,844,202
============== ============
The accompanying notes are an integral part of the financial statements.
20
Financial Highlights - Pro-BlendR Conservative Term Series
FOR THE SIX
MONTHS ENDED
4/30/05 FOR THE YEARS ENDED
(UNAUDITED) 10/31/04 10/31/03 10/31/02 10/31/01
-------------- --------------------- ---------- ---------- ----------
PER SHARE DATA (FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD):
NET ASSET VALUE - BEGINNING OF PERIOD. . . . . . . $ 11.54 $ 11.32 $ 10.95 $ 11.34 $ 11.16
-------------- --------------------- ---------- ---------- ----------
Income from investment operations:
Net investment income. . . . . . . . . . . . . . . 0.08 0.18 0.17 0.302 0.46
Net realized and unrealized gain on investments. . 0.23 0.48 0.45 0.152 0.51
-------------- --------------------- ---------- ---------- ----------
Total from investment operations . . . . . . . . . 0.31 0.66 0.62 0.45 0.97
-------------- --------------------- ---------- ---------- ----------
Less distributions to shareholders:
From net investment income . . . . . . . . . . . . (0.13) (0.17) (0.21) (0.41) (0.48)
From net realized gain on investments. . . . . . . (0.09) (0.27) (0.04) (0.43) (0.31)
-------------- --------------------- ---------- ---------- ----------
Total distributions to shareholders. . . . . . . . (0.22) (0.44) (0.25) (0.84) (0.79)
-------------- --------------------- ---------- ---------- ----------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . $ 11.63 $ 11.54 $ 11.32 $ 10.95 $ 11.34
============== ===================== ========== ========== ==========
Total return1. . . . . . . . . . . . . . . . . . . 2.66% 5.93% 5.75% 4.35% 9.09%
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL DATA:
Expenses*. . . . . . . . . . . . . . . . . . . . . 1.00%3 1.00% 1.00% 1.00% 1.00%
Net investment income. . . . . . . . . . . . . . . 1.69%3 1.77% 1.90% 2.95%2 3.84%
Portfolio turnover . . . . . . . . . . . . . . . . 29% 25% 40% 55% 42%
NET ASSETS - END OF PERIOD (000's omitted) . . . . $ 31,668 $ 26,844 $ 19,991 $ 12,195 $ 4,233
============== ===================== ========== ========== ==========
FOR THE
YEAR ENDED
10/31/00
-----------
PER SHARE DATA (FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD):
NET ASSET VALUE - BEGINNING OF PERIOD. . . . . . . $10.62
-------
Income from investment operations:
Net investment income. . . . . . . . . . . . . . . 0.46
Net realized and unrealized gain on investments. . 0.62
-------
Total from investment operations . . . . . . . . . 1.08
-------
Less distributions to shareholders:
From net investment income . . . . . . . . . . . . (0.44)
From net realized gain on investments. . . . . . . (0.10)
-------
Total distributions to shareholders. . . . . . . . (0.54)
-------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . $11.16
=======
Total return1. . . . . . . . . . . . . . . . . . . 10.62%
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL DATA:
Expenses*. . . . . . . . . . . . . . . . . . . . . 1.00%
Net investment income. . . . . . . . . . . . . . . 4.13%
Portfolio turnover . . . . . . . . . . . . . . . . 33%
NET ASSETS - END OF PERIOD (000's omitted) . . . . $4,838
=======
*The investment advisor did not impose all or a portion of its management fee
and in some periods paid a portion of the Series' expenses. If these expenses
had been incurred by the Series, the expense ratio (to average net assets) would
have been increased as follows:
0.22%3 0.32% 0.82% 1.84% 2.00% 1.23%
1Represents aggregate total return for the period indicated, and assumes
reinvestment of all distributions. Total return would have been lower had
certain expenses not been waived or reimbursed during the period. Periods less
than one year are not annualized.
2The Series adopted the provisions of the revised AICPA Audit and Accounting
Guide for Investment Companies, which requires the Series to amortize premium
and accrete discount on all debt securities (see Note 2 to the financial
statements). The effect of this change for the year ended October 31, 2002 was
to increase net investment income per share by $0.01, decrease net realized and
unrealized gain (loss) on investments per share by $0.01, and increase the net
investment income ratio from 2.80% to 2.95%. Per share data and ratios for the
periods prior to November 1, 2001 have not been restated to reflect this change
in presentation.
3Annualized.
The accompanying notes are an integral part of the financial statements.
21
Performance Update - Pro-BlendR Moderate Term Series (unaudited)
Average Annual Total Returns
As of April 30, 2005
--------------------------------------------------------
One Five Ten Since
Year Year Year Inception1
----------------------------- ----- ----- -----------
Exeter Fund, Inc. - Pro-BlendR Moderate Term Series2 8.60% 6.62% 8.24% 7.79%
Lehman Brothers Intermediate U.S. Government/Credit
Bond Index3 . . . . . . . . . . . . . . . . . . . . . 3.27% 7.00% 6.59% 6.01%
40%/60% Blended Index3. . . . . . . . . . . . . . . . 4.58% 3.28% 8.39% 8.01%
The following graph compares the value of a $10,000 investment in the Exeter
Fund, Inc. - Pro-BlendR Moderate Term Series from its inception1 (9/15/93) to
present (4/30/05) to the Lehman Brothers Intermediate U.S. Government/Credit
Bond Index and a 40%/60% Blended Index.
Data for line graph to follow:
Exeter Fund, Inc. Lehman Brothers Intermediate
Date Pro-BlendR Moderate Term Series U.S. Government/Credit Bond Index 40%/60% Blended Index
- ---- -------------------------------- --------------------------------- ---------------------
9/15/93 $10,000 $10,000 $10,000
12/31/93 10,092 10,032 10,103
12/31/94 10,012 9,838 10,045
12/31/95 12,123 11,347 12,438
10/31/96 12,806 11,728 13,503
10/31/97 14,472 12,606 15,807
10/31/98 15,383 13,755 18,139
10/31/99 16,048 13,891 20,037
10/31/00 18,634 14,788 21,358
10/31/01 19,304 16,896 20,754
10/31/02 18,662 17,867 20,262
10/31/03 20,878 18,837 22,626
10/31/04 22,707 19,652 24,073
4/30/05 23,909 19,658 24,407
1Performance numbers for the Series are calculated from September 15, 1993, the
Series' inception date. The Lehman Brothers Intermediate U.S. Government/Credit
Bond Index only publishes month-end numbers; therefore, performance numbers for
the indices are calculated from September 30, 1993.
2The Series' performance does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of shares. The
Series' performance is historical and may not be indicative of future results.
3The Lehman Brothers Intermediate U.S. Government/Credit Bond Index is a market
value weighted measure of over 2,000 corporate and government investment grade
securities with maturities greater than one year but less than ten years. The
40%/60% Blended Index is 40% Standard & Poor's (S&P) 500 Total Return Index and
60% Lehman Brothers Intermediate U.S. Government/Credit Bond Index. The S&P 500
Total Return Index is an unmanaged capitalization-weighted measure of 500 widely
held common stocks listed on the New York Stock Exchange, American Stock
Exchange and the Over-the-Counter market. Both Indices' returns assume
reinvestment of income and, unlike Series returns, do not reflect any fees or
expenses. Because the Series' asset allocation will vary over time, the
composition of the Series' portfolio may not match the composition of the
comparative Indices' portfolios.
22
Shareholder Expense Example - Pro-BlendR Moderate Term Series (unaudited)
As a shareholder of the Series, you may incur two types of costs: (1)
transaction costs, including potential wire charges on redemptions and (2)
ongoing costs, including management fees and other Series expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Series and to compare these costs with the ongoing costs of
investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (November 1, 2004 to April 30, 2005).
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Series' actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Series' actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid
during the period. You may use this information to compare the ongoing costs of
investing in the Series 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 costs, such as potential
wire charges on redemptions. Therefore, the second line of the table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
11/1/04 4/30/05 11/1/04-4/30/05
-------------- -------------- ----------------
Actual. . . . . . . . . . . $ 1,000.00 $ 1,052.90 $ 6.11
Hypothetical
(5% return before expenses) $ 1,000.00 $ 1,018.84 $ 6.01
*Expenses are equal to the Series' annualized expense ratio (for the six-month
period) of 1.20%, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period). Expenses are based
on the most recent fiscal half year; therefore, the Series' expense ratio may
differ from the expense ratio based on one-year data in the financial
highlights. The Series' total return would have been lower had certain expenses
not been waived during the period.
23
Portfolio Composition - Pro-BlendR Moderate Term Series (unaudited)
As of April 30, 2005
Data for pie chart to follow:
ASSET ALLOCATION*
Cash, short-term investments, and liabilities, less other assets 15.28%
Common Stocks. . . . . . . . . . . . . . . . . . . . . . . . . . 50.95%
U.S. Government Agencies . . . . . . . . . . . . . . . . . . . . 5.24%
U.S. Treasury Bonds1 . . . . . . . . . . . . . . . . . . . . . . 8.42%
U.S. Treasury Notes2 . . . . . . . . . . . . . . . . . . . . . . 16.19%
Corporate Bonds. . . . . . . . . . . . . . . . . . . . . . . . . 3.92%
*As a percentage of net assets.
1A U.S. Treasury Bond is a long-term obligation of the U.S. Treasury issued with
a maturity period of more than ten years.
2A U.S. Treasury Note is an intermediate-term obligation of the U.S. Treasury
issued with a maturity period between one and ten years.
SECTOR ALLOCATION*
Consumer Discretionary . . 9.29%
Consumer Staples . . . . . 6.57%
Energy . . . . . . . . . . 5.87%
Financials . . . . . . . . 5.47%
Health Care. . . . . . . . 9.48%
Industrials. . . . . . . . 4.06%
Information Technology . . 4.07%
Materials. . . . . . . . . 2.25%
Telecommunication Services 2.35%
Utilities. . . . . . . . . 2.58%
*Including Common Stocks and Corporate Bonds, as a percentage of total
investments.
TOP TEN STOCK HOLDINGS*
WebMD Corp. . . . . . . . . . . . . . . . 2.05%
Nestle S.A. (Switzerland) . . . . . . . . 1.91%
Unilever plc - ADR (United Kingdom) . . . 1.91%
Schering-Plough Corp. . . . . . . . . . . 1.90%
Vodafone Group plc - ADR (United Kingdom) 1.84%
Schlumberger Ltd. . . . . . . . . . . . . 1.56%
Time Warner, Inc. . . . . . . . . . . . . 1.48%
Novartis AG - ADR (Switzerland) . . . . . 1.46%
Allegheny Energy, Inc.. . . . . . . . . . 1.33%
Cisco Systems, Inc. . . . . . . . . . . . 1.07%
*As a percentage of total investments.
24
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES SHARES (NOTE 2)
- ---------------------------------------------------------- --------- -----------
COMMON STOCKS - 50.95%
CONSUMER DISCRETIONARY - 9.00%
AUTOMOBILES - 0.01%
Bayerische Motoren Werke AG (BMW) (Germany) (Note 7) . . . 250 $ 10,528
------------
DIVERSIFIED CONSUMER SERVICES - 1.05%
Weight Watchers International, Inc.* . . . . . . . . . . . 29,000 1,210,750
------------
HOTELS, RESTAURANTS & LEISURE - 0.97%
Carnival Corp. . . . . . . . . . . . . . . . . . . . . . . 20,425 998,374
Club Mediterranee S.A.* (France) (Note 7). . . . . . . . . 2,100 99,189
Shangri-La Asia Ltd. (Hong Kong) (Note 7). . . . . . . . . 17,000 25,953
------------
1,123,516
------------
HOUSEHOLD DURABLES - 0.15%
Corporacion GEO S.A. de C.V. - Series B* (Mexico) (Note 7) 12,125 25,279
Hunter Douglas N.V. (Netherlands) (Note 7) . . . . . . . . 775 37,064
Interface, Inc. - Class A* . . . . . . . . . . . . . . . . 5,675 34,050
Libbey, Inc. . . . . . . . . . . . . . . . . . . . . . . . 275 4,821
Sony Corp. - ADR (Japan) (Note 7). . . . . . . . . . . . . 1,850 67,913
------------
169,127
------------
INTERNET & CATALOG RETAIL - 0.02%
IAC/InterActiveCorp* . . . . . . . . . . . . . . . . . . . 1,200 26,088
------------
LEISURE EQUIPMENT & PRODUCTS - 0.06%
Callaway Golf Co.. . . . . . . . . . . . . . . . . . . . . 475 5,120
Hasbro, Inc. . . . . . . . . . . . . . . . . . . . . . . . 1,350 25,542
K2, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . 525 6,678
Sega Sammy Holdings, Inc. (Japan) (Note 7) . . . . . . . . 600 35,314
------------
72,654
------------
MEDIA - 4.27%
Acme Communications, Inc.* . . . . . . . . . . . . . . . . 6,500 26,786
Belo Corp. - Class A . . . . . . . . . . . . . . . . . . . 1,425 33,388
Cablevision Systems Corp. - Class A* . . . . . . . . . . . 40,700 1,056,165
Harris Interactive, Inc.*. . . . . . . . . . . . . . . . . 10,700 44,512
Impresa S.A. (SGPS)* (Portugal) (Note 7) . . . . . . . . . 4,825 34,216
Media Capital S.A. (SGPS)* (Portugal) (Note 7) . . . . . . 5,125 35,882
News Corp. - Class A . . . . . . . . . . . . . . . . . . . 3,175 48,514
Pearson plc (United Kingdom) (Note 7). . . . . . . . . . . 67,700 820,410
PT Multimedia S.A. (SGPS)* (Portugal) (Note 7) . . . . . . 1,100 26,021
Reed Elsevier plc - ADR (United Kingdom) (Note 7). . . . . 1,650 65,142
The E.W. Scripps Co. - Class A . . . . . . . . . . . . . . 16,225 826,339
The accompanying notes are an integral part of the financial statements.
25
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES SHARES (NOTE 2)
- --------------------------------------------------------- ---------- -----------
CONSUMER DISCRETIONARY (continued)
MEDIA (continued)
Time Warner, Inc.*. . . . . . . . . . . . . . . . . . . . 107,525 $1,807,495
VNU N.V. (Netherlands) (Note 7) . . . . . . . . . . . . . 2,535 70,993
Wolters Kluwer N.V. (Netherlands) (Note 7). . . . . . . . 2,200 38,932
------------
4,934,795
------------
MULTILINE RETAIL - 0.02%
Don Quijote Co. Ltd. (Japan) (Note 7) . . . . . . . . . . 300 18,315
------------
SPECIALTY RETAIL - 2.43%
Build-A-Bear-Workshop, Inc.*. . . . . . . . . . . . . . . 1,450 38,874
Douglas Holding AG (Germany) (Note 7) . . . . . . . . . . 2,250 75,782
Foot Locker, Inc. . . . . . . . . . . . . . . . . . . . . 750 19,995
KOMERI Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . 600 15,196
Office Depot, Inc.* . . . . . . . . . . . . . . . . . . . 38,600 755,788
RadioShack Corp.. . . . . . . . . . . . . . . . . . . . . 41,975 1,048,116
Staples, Inc. . . . . . . . . . . . . . . . . . . . . . . 44,662 851,704
------------
2,805,455
------------
TEXTILES, APPAREL & LUXURY GOODS - 0.02%
LVMH S.A. (Louis Vuitton Moet Hennessy) (France) (Note 7) 400 28,057
------------
TOTAL CONSUMER DISCRETIONARY. . . . . . . . . . . . . . . 10,399,285
------------
CONSUMER STAPLES - 6.79%
BEVERAGES - 0.81%
The Coca-Cola Co. . . . . . . . . . . . . . . . . . . . . 20,425 887,262
Diageo plc (United Kingdom) (Note 7). . . . . . . . . . . 1,175 17,356
Grupo Modelo S.A. de C.V. - Series C (Mexico) (Note 7). . 6,025 17,174
Scottish & Newcastle plc (United Kingdom) (Note 7). . . . 2,050 17,732
------------
939,524
------------
FOOD & STAPLES RETAILING - 0.94%
Carrefour S.A. (France) (Note 7). . . . . . . . . . . . . 20,750 1,001,448
Metro AG (Germany) (Note 7) . . . . . . . . . . . . . . . 325 17,212
Pathmark Stores, Inc.*. . . . . . . . . . . . . . . . . . 5,675 43,811
Tesco plc (United Kingdom) (Note 7) . . . . . . . . . . . 3,400 19,985
------------
1,082,456
------------
FOOD PRODUCTS - 4.13%
Cadbury Schweppes plc (United Kingdom) (Note 7) . . . . . 7,050 70,635
Groupe Danone (France) (Note 7) . . . . . . . . . . . . . 200 18,636
The Hain Celestial Group, Inc.* . . . . . . . . . . . . . 1,175 20,856
The accompanying notes are an integral part of the financial statements.
26
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES SHARES (NOTE 2)
- --------------------------------------------------------------- --------- -----------
CONSUMER STAPLES (continued)
FOOD PRODUCTS (continued)
Nestle S.A. (Switzerland) (Note 7). . . . . . . . . . . . . . . 8,900 $2,330,740
Unilever plc - ADR (United Kingdom) (Note 7). . . . . . . . . . 60,673 2,327,416
------------
4,768,283
------------
HOUSEHOLD PRODUCTS - 0.15%
Henkel KgaA (Germany) (Note 7). . . . . . . . . . . . . . . . . 325 27,899
Kao Corp. (Japan) (Note 7). . . . . . . . . . . . . . . . . . . 1,000 23,133
Kimberly-Clark de Mexico S.A. de C.V. - ADR (Mexico) (Note 7) . 6,975 99,068
Reckitt Benckiser plc (United Kingdom) (Note 7) . . . . . . . . 575 18,578
------------
168,678
------------
PERSONAL PRODUCTS - 0.76%
Clarins S.A. (France) (Note 7). . . . . . . . . . . . . . . . . 1,500 90,251
The Estee Lauder Companies, Inc. - Class A. . . . . . . . . . . 19,525 749,955
Shiseido Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . . . 3,000 38,233
------------
878,439
------------
TOTAL CONSUMER STAPLES. . . . . . . . . . . . . . . . . . . . . 7,837,380
------------
ENERGY - 5.89%
ENERGY EQUIPMENT & SERVICES - 4.56%
Abbot Group plc (United Kingdom) (Note 7) . . . . . . . . . . . 17,525 70,903
Atwood Oceanics, Inc.*. . . . . . . . . . . . . . . . . . . . . 450 25,681
Baker Hughes, Inc.. . . . . . . . . . . . . . . . . . . . . . . 16,775 740,113
Compagnie Generale de Geophysique S.A. (CGG)* (France) (Note 7) 750 58,880
Cooper Cameron Corp.* . . . . . . . . . . . . . . . . . . . . . 9,900 543,906
Helmerich & Payne, Inc. . . . . . . . . . . . . . . . . . . . . 1,475 56,699
National-Oilwell Varco, Inc.* . . . . . . . . . . . . . . . . . 7,614 302,580
Pride International, Inc.*. . . . . . . . . . . . . . . . . . . 4,225 94,218
Schlumberger Ltd. . . . . . . . . . . . . . . . . . . . . . . . 27,800 1,901,798
Smedvig ASA - Class A (Norway) (Note 7) . . . . . . . . . . . . 2,950 51,520
Transocean, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 12,175 564,555
Weatherford International Ltd.* . . . . . . . . . . . . . . . . 16,400 855,260
------------
5,266,113
------------
OIL, GAS & CONSUMABLE FUELS - 1.33%
Amerada Hess Corp.. . . . . . . . . . . . . . . . . . . . . . . 13,450 1,259,592
BP plc (United Kingdom) (Note 7). . . . . . . . . . . . . . . . 1,775 18,089
Eni S.p.A. (Italy) (Note 7) . . . . . . . . . . . . . . . . . . 3,475 87,255
Forest Oil Corp.* . . . . . . . . . . . . . . . . . . . . . . . 1,700 65,501
Petroleo Brasileiro S.A. (Petrobras) - ADR (Brazil) (Note 7). . 1,350 49,612
Shell Transport & Trading Co. plc (United Kingdom) (Note 7) . . 2,200 19,712
The accompanying notes are an integral part of the financial statements.
27
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------------ --------- ---------
ENERGY (continued)
OIL, GAS & CONSUMABLE FUELS (continued)
Total S.A. (France) (Note 7) . . . . . . . . . . . . . . . . . . . 175 $ 38,851
----------
1,538,612
----------
TOTAL ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,804,725
----------
FINANCIALS - 4.78%
CAPITAL MARKETS - 1.41%
The Bank of New York Co., Inc. . . . . . . . . . . . . . . . . . . 29,650 828,421
Deutsche Bank AG (Germany) (Note 7). . . . . . . . . . . . . . . . 925 75,417
SEI Investments Co.. . . . . . . . . . . . . . . . . . . . . . . . 22,200 728,382
----------
1,632,220
----------
COMMERCIAL BANKS - 2.48%
Banca Intesa S.p.A. (Italy) (Note 7) . . . . . . . . . . . . . . . 6,423 30,482
Banco BPI S.A. (Portugal) (Note 7) . . . . . . . . . . . . . . . . 5,475 21,985
Banco Espirito Santo S.A. (BES) (Portugal) (Note 7). . . . . . . . 975 16,438
Bayerische Hypo-und Vereinsbank AG (HVB Group)* (Germany) (Note 7) 2,450 58,018
BNP Paribas S.A. (France) (Note 7) . . . . . . . . . . . . . . . . 350 22,928
Commerzbank AG* (Germany) (Note 7) . . . . . . . . . . . . . . . . 2,425 52,807
Metropolitan Bank & Trust Co. (Philippines) (Note 7) . . . . . . . 75,325 43,875
PNC Financial Services Group, Inc. . . . . . . . . . . . . . . . . 17,100 910,233
Societe Generale (France) (Note 7) . . . . . . . . . . . . . . . . 150 14,846
U.S. Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . . 28,175 786,082
UniCredito Italiano S.p.A. (Italy) (Note 7). . . . . . . . . . . . 6,225 34,690
Wachovia Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 16,925 866,222
----------
2,858,606
----------
CONSUMER FINANCE - 0.02%
MoneyGram International, Inc.. . . . . . . . . . . . . . . . . . . 725 14,065
Takefuji Corp. (Japan) (Note 7). . . . . . . . . . . . . . . . . . 230 14,568
----------
28,633
----------
DIVERSIFIED FINANCIAL SERVICES - 0.72%
ING Groep N.V. (Netherlands) (Note 7). . . . . . . . . . . . . . . 1,350 36,660
Principal Financial Group, Inc.. . . . . . . . . . . . . . . . . . 20,450 799,186
----------
835,846
----------
INSURANCE - 0.09%
Allianz AG (Germany) (Note 7). . . . . . . . . . . . . . . . . . . 150 17,809
Assicurazioni Generali S.p.A. (Italy) (Note 7) . . . . . . . . . . 1,100 33,680
Axa (France) (Note 7). . . . . . . . . . . . . . . . . . . . . . . 1,400 34,216
Muenchener Rueckver AG (Germany) (Note 7). . . . . . . . . . . . . 150 16,405
----------
102,110
----------
The accompanying notes are an integral part of the financial statements.
28
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES SHARES (NOTE 2)
- ---------------------------------------------- --------- -----------
FINANCIALS (continued)
REAL ESTATE - 0.04%
SM Prime Holdings, Inc. (Philippines) (Note 7) 307,275 $ 42,046
------------
THRIFTS & MORTGAGE FINANCE - 0.02%
Flagstar Bancorp, Inc. . . . . . . . . . . . . 1,050 19,992
------------
TOTAL FINANCIALS . . . . . . . . . . . . . . . 5,519,453
------------
HEALTH CARE - 9.85%
BIOTECHNOLOGY - 0.40%
BioMarin Pharmaceutical, Inc.* . . . . . . . . 13,725 81,389
Caliper Life Sciences, Inc.* . . . . . . . . . 6,475 37,490
Chiron Corp.*. . . . . . . . . . . . . . . . . 3,425 116,964
Diversa Corp.* . . . . . . . . . . . . . . . . 11,000 57,750
Millennium Pharmaceuticals, Inc.*. . . . . . . 10,900 95,484
Neurocrine Biosciences, Inc.*. . . . . . . . . 850 29,716
Xenogen Corp.* . . . . . . . . . . . . . . . . 10,325 46,049
------------
464,842
------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.35%
Advanced Neuromodulation Systems, Inc.*. . . . 3,350 100,868
Conceptus, Inc.* . . . . . . . . . . . . . . . 7,925 48,422
DENTSPLY International, Inc. . . . . . . . . . 1,875 102,488
Millipore Corp.* . . . . . . . . . . . . . . . 800 38,576
Thermo Electron Corp.* . . . . . . . . . . . . 1,925 48,086
Varian, Inc.*. . . . . . . . . . . . . . . . . 1,300 43,121
Viasys Healthcare, Inc.* . . . . . . . . . . . 1,025 21,771
------------
403,332
------------
HEALTH CARE PROVIDERS & SERVICES - 2.97%
Allscripts Healthcare Solutions, Inc.* . . . . 6,900 90,321
American Healthways, Inc.* . . . . . . . . . . 975 36,416
AmerisourceBergen Corp.. . . . . . . . . . . . 1,325 81,196
AMN Healthcare Services, Inc.* . . . . . . . . 5,825 86,035
Cross Country Healthcare, Inc.*. . . . . . . . 5,650 91,021
Eclipsys Corp.*. . . . . . . . . . . . . . . . 5,800 78,358
Express Scripts, Inc.* . . . . . . . . . . . . 1,200 107,568
HCA, Inc.. . . . . . . . . . . . . . . . . . . 1,150 64,216
McKesson Corp. . . . . . . . . . . . . . . . . 2,175 80,475
Omnicell, Inc.*. . . . . . . . . . . . . . . . 22,550 138,682
Triad Hospitals, Inc.* . . . . . . . . . . . . 1,650 84,563
WebMD Corp.* . . . . . . . . . . . . . . . . . 262,700 2,495,650
------------
3,434,501
------------
The accompanying notes are an integral part of the financial statements.
29
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------------------ ---------- -----------
HEALTH CARE (continued)
PHARMACEUTICALS - 6.13%
AstraZeneca plc (United Kingdom) (Note 7). . . . . . . . . . . . . . . . 350 $ 15,236
AstraZeneca plc - ADR (United Kingdom) (Note 7). . . . . . . . . . . . . 825 36,259
Bristol-Myers Squibb Co. . . . . . . . . . . . . . . . . . . . . . . . . 2,600 67,600
GlaxoSmithKline plc (United Kingdom) (Note 7). . . . . . . . . . . . . . 6,175 154,611
GlaxoSmithKline plc - ADR (United Kingdom) (Note 7). . . . . . . . . . . 25,250 1,276,387
Merck & Co., Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000 67,800
Novartis AG - ADR (Switzerland) (Note 7) . . . . . . . . . . . . . . . . 36,600 1,783,518
Pfizer, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,675 887,780
Roche Holding AG - ADR (Switzerland) (Note 7). . . . . . . . . . . . . . 600 36,188
Sanofi-Aventis (France) (Note 7) . . . . . . . . . . . . . . . . . . . . 270 23,768
Sanofi-Aventis - ADR (France) (Note 7) . . . . . . . . . . . . . . . . . 775 34,387
Schering AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . . . 2,750 180,502
Schering-Plough Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . 111,000 2,316,570
Shire Pharmaceuticals Group plc (United Kingdom) (Note 7). . . . . . . . 1,750 18,251
Takeda Pharmaceutical Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . 400 19,498
Watson Pharmaceuticals, Inc.*. . . . . . . . . . . . . . . . . . . . . . 2,975 89,250
Wyeth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,550 69,657
------------
7,077,262
------------
TOTAL HEALTH CARE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,379,937
------------
INDUSTRIALS - 3.58%
AEROSPACE & DEFENSE - 0.62%
Empresa Brasileira de Aeronautica S.A. (Embraer) - ADR (Brazil) (Note 7) 24,975 720,279
------------
AIRLINES - 0.81%
AirTran Holdings, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . 4,325 35,897
Deutsche Lufthansa AG* (Germany) (Note 7). . . . . . . . . . . . . . . . 1,575 20,270
JetBlue Airways Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . 1,025 20,551
Southwest Airlines Co. . . . . . . . . . . . . . . . . . . . . . . . . . 57,725 858,948
------------
935,666
------------
COMMERCIAL SERVICES & SUPPLIES - 0.22%
Aggreko plc (United Kingdom) (Note 7). . . . . . . . . . . . . . . . . . 4,650 16,173
BWT AG (Austria) (Note 7). . . . . . . . . . . . . . . . . . . . . . . . 1,000 31,197
Herman Miller, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . 875 25,025
Quebecor World, Inc. (Canada) (Note 7) . . . . . . . . . . . . . . . . . 1,975 43,687
Tomra Systems ASA (Norway) (Note 7). . . . . . . . . . . . . . . . . . . 38,675 141,519
------------
257,601
------------
The accompanying notes are an integral part of the financial statements.
30
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------ --------- -----------
INDUSTRIALS (continued)
CONSTRUCTION & ENGINEERING - 0.12%
Hochtief AG (Germany) (Note 7) . . . . . . . . . . . . . . . 575 $ 17,072
Infrasource Services, Inc.*. . . . . . . . . . . . . . . . . 1,550 15,577
Insituform Technologies, Inc. - Class A* . . . . . . . . . . 1,675 24,974
Koninklijke Boskalis Westminster N.V. (Netherlands) (Note 7) 2,208 80,448
------------
138,071
------------
ELECTRICAL EQUIPMENT - 0.07%
Gamesa Corporacion Tecnologica S.A. (Spain) (Note 7) . . . . 2,200 28,286
Global Power Equipment Group, Inc.*. . . . . . . . . . . . . 2,675 24,235
Plug Power, Inc.*. . . . . . . . . . . . . . . . . . . . . . 4,150 23,033
------------
75,554
------------
INDUSTRIAL CONGLOMERATES - 0.08%
Siemens AG (Germany) (Note 7). . . . . . . . . . . . . . . . 875 63,941
Sonae S.A. (SGPS) (Portugal) (Note 7). . . . . . . . . . . . 19,025 30,117
------------
94,058
------------
MACHINERY - 0.80%
AGCO Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . 44,025 757,230
Albany International Corp. - Class A . . . . . . . . . . . . 775 24,304
FANUC Ltd. (Japan) (Note 7). . . . . . . . . . . . . . . . . 200 11,829
Gardner Denver, Inc.*. . . . . . . . . . . . . . . . . . . . 750 27,405
Lindsay Manufacturing Co.. . . . . . . . . . . . . . . . . . 1,000 18,660
MAN AG (Germany) (Note 7). . . . . . . . . . . . . . . . . . 950 39,822
Wabtec Corp. . . . . . . . . . . . . . . . . . . . . . . . . 1,950 39,000
------------
918,250
------------
ROAD & RAIL - 0.86%
CSX Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . 24,775 994,221
------------
TOTAL INDUSTRIALS. . . . . . . . . . . . . . . . . . . . . . 4,133,700
------------
INFORMATION TECHNOLOGY - 4.19%
COMMUNICATIONS EQUIPMENT - 1.27%
Cisco Systems, Inc.* . . . . . . . . . . . . . . . . . . . . 75,400 1,302,912
Nokia Oyj - ADR (Finland) (Note 7) . . . . . . . . . . . . . 6,025 96,279
Polycom, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 2,875 43,873
Scientific-Atlanta, Inc. . . . . . . . . . . . . . . . . . . 825 25,229
------------
1,468,293
------------
The accompanying notes are an integral part of the financial statements.
31
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------------- --------- ---------
INFORMATION TECHNOLOGY (continued)
COMPUTERS & PERIPHERALS - 0.07%
EMC Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,875 $ 37,720
Logitech International S.A. - ADR* (Switzerland) (Note 7) . . . . . 750 43,463
----------
81,183
----------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.14%
Digital Theater Systems, Inc. (DTS)*. . . . . . . . . . . . . . . . 2,250 38,025
KEYENCE Corp. (Japan) (Note 7). . . . . . . . . . . . . . . . . . . 100 22,131
Mabuchi Motor Co. Ltd. (Japan) (Note 7) . . . . . . . . . . . . . . 200 12,019
Mettler-Toledo International, Inc.* (Switzerland) (Note 7). . . . . 1,075 49,289
Solectron Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . 10,625 35,063
----------
156,527
----------
INTERNET SOFTWARE & SERVICES - 0.04%
Blue Coat Systems, Inc.*. . . . . . . . . . . . . . . . . . . . . . 2,925 42,120
Online Resources Corp.* . . . . . . . . . . . . . . . . . . . . . . 1,000 8,700
----------
50,820
----------
IT SERVICES - 0.78%
The BISYS Group, Inc.*1 . . . . . . . . . . . . . . . . . . . . . . 1,325 18,709
First Data Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . 23,325 887,050
----------
905,759
----------
OFFICE ELECTRONICS - 0.05%
Canon, Inc. (Japan) (Note 7). . . . . . . . . . . . . . . . . . . . 1,000 52,275
----------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.11%
ATI Technologies, Inc.* (Canada) (Note 7) . . . . . . . . . . . . . 1,975 29,230
Cabot Microelectronics Corp.* . . . . . . . . . . . . . . . . . . . 2,125 61,179
Cymer, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,525 37,805
Exar Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,325 29,504
Mindspeed Technologies, Inc.* . . . . . . . . . . . . . . . . . . . 3,925 5,338
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR (Taiwan) (Note 7) 10,297 88,657
Texas Instruments, Inc. . . . . . . . . . . . . . . . . . . . . . . 39,250 979,680
Zoran Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,025 53,165
----------
1,284,558
----------
SOFTWARE - 0.73%
Amdocs Ltd.* (Guernsey) (Note 7). . . . . . . . . . . . . . . . . . 2,825 75,456
Blackbaud, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 4,575 59,704
Business Objects S.A. - ADR* (France) (Note 7). . . . . . . . . . . 2,950 76,139
F-Secure Oyj* (Finland) (Note 7). . . . . . . . . . . . . . . . . . 3,675 8,986
Opsware, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . . . 2,825 13,504
The accompanying notes are an integral part of the financial statements.
32
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES SHARES (NOTE 2)
- ----------------------------------------------------------------- --------- ---------
INFORMATION TECHNOLOGY (continued)
SOFTWARE (continued)
SAP AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . . 325 $ 50,779
SAP AG - ADR (Germany) (Note 7) . . . . . . . . . . . . . . . . . 875 34,501
Secure Computing Corp.* . . . . . . . . . . . . . . . . . . . . . 1,600 14,160
Synopsys, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . 27,300 448,812
Verity, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . . 7,625 62,525
----------
844,566
----------
TOTAL INFORMATION TECHNOLOGY. . . . . . . . . . . . . . . . . . . 4,843,981
----------
MATERIALS - 2.28%
CHEMICALS - 1.98%
Air Liquide S.A. (France) (Note 7). . . . . . . . . . . . . . . . 165 29,305
Bayer AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . 1,050 34,419
Degussa AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . 225 9,455
Engelhard Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 27,500 842,325
Lanxess* (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . 105 2,164
Lonza Group AG (Switzerland) (Note 7) . . . . . . . . . . . . . . 11,625 696,897
Minerals Technologies, Inc. . . . . . . . . . . . . . . . . . . . 10,225 667,897
----------
2,282,462
----------
PAPER & FOREST PRODUCTS - 0.30%
Aracruz Celulose S.A. - ADR (Brazil) (Note 7) . . . . . . . . . . 10,025 307,767
Sappi Ltd. - ADR (South Africa) (Note 7). . . . . . . . . . . . . 4,025 40,170
----------
347,937
----------
TOTAL MATERIALS . . . . . . . . . . . . . . . . . . . . . . . . . 2,630,399
----------
TELECOMMUNICATION SERVICES - 2.19%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.15%
CT Communications, Inc. . . . . . . . . . . . . . . . . . . . . . 2,325 26,691
D&E Communications, Inc.. . . . . . . . . . . . . . . . . . . . . 2,425 20,176
Deutsche Telekom AG (Germany) (Note 7). . . . . . . . . . . . . . 2,225 41,522
Philippine Long Distance Telephone Co. (Philippines) (Note 7) . . 1,050 26,794
Telecom Italia S.p.A. (Italy) (Note 7). . . . . . . . . . . . . . 12,378 41,698
Telefonos de Mexico S.A. de C.V. (Telmex) - ADR (Mexico) (Note 7) 475 16,103
----------
172,984
----------
WIRELESS TELECOMMUNICATION SERVICES - 2.04%
Globe Telecom, Inc. (Philippines) (Note 7). . . . . . . . . . . . 1,425 21,343
Maxis Communications Berhad (Malaysia) (Note 7) . . . . . . . . . 8,000 20,318
NTT DoCoMo, Inc. (Japan) (Note 7) . . . . . . . . . . . . . . . . 44 67,996
The accompanying notes are an integral part of the financial statements.
33
Investment Portfolio - April 30, 2005 (unaudited)
SHARES/ VALUE
PRO-BLENDR MODERATE TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- --------------------------------------------------------- ---------------- -----------
TELECOMMUNICATION SERVICES (continued)
WIRELESS TELECOMMUNICATION SERVICES (continued)
Vodafone Group plc - ADR (United Kingdom) (Note 7). . . . 85,775 $2,242,159
------------
2,351,816
------------
TOTAL TELECOMMUNICATION SERVICES. . . . . . . . . . . . . 2,524,800
------------
UTILITIES - 2.40%
ELECTRIC UTILITIES - 1.49%
Allegheny Energy, Inc.* . . . . . . . . . . . . . . . . . 66,575 1,627,093
E.ON AG (Germany) (Note 7). . . . . . . . . . . . . . . . 875 73,480
Westar Energy, Inc. . . . . . . . . . . . . . . . . . . . 1,025 23,473
------------
1,724,046
------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.84%
NRG Energy, Inc.* . . . . . . . . . . . . . . . . . . . . 31,300 973,430
------------
MULTI-UTILITIES - 0.07%
Aquila, Inc.* . . . . . . . . . . . . . . . . . . . . . . 11,750 40,420
National Grid Transco plc (United Kingdom) (Note 7) . . . 1,975 19,401
Suez S.A. (France) (Note 7) . . . . . . . . . . . . . . . 550 14,936
------------
74,757
------------
TOTAL UTILITIES . . . . . . . . . . . . . . . . . . . . . 2,772,233
------------
TOTAL COMMON STOCKS
(Identified Cost $52,746,922) . . . . . . . . . . . . . . 58,845,893
------------
CORPORATE BONDS - 3.92%
CONSUMER DISCRETIONARY - 0.80%
MEDIA - 0.40%
AOL Time Warner (now known as Time Warner, Inc.), 6.75%,
4/15/2011 . . . . . . . . . . . . . . . . . . . . . . . . $ 185,000 203,236
Comcast Cable Communications, Inc., 6.75%, 1/30/2011. . . 160,000 175,617
The Walt Disney Co., 6.375%, 3/1/2012 . . . . . . . . . . 80,000 87,251
------------
466,104
------------
MULTILINE RETAIL - 0.22%
JC Penney Co., Inc., 8.00%, 3/1/2010. . . . . . . . . . . 100,000 109,500
Target Corp., 5.875%, 3/1/2012. . . . . . . . . . . . . . 135,000 144,727
------------
254,227
------------
The accompanying notes are an integral part of the financial statements.
34
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------------------- ----------------- ---------
CONSUMER DISCRETIONARY (continued)
SPECIALTY RETAIL - 0.18%
The Gap, Inc.4, 10.05%, 12/15/2008 . . . . . . . . . . . . . . . . . $ 75,000 $ 86,671
Lowe's Companies, Inc., 8.25%, 6/1/2010. . . . . . . . . . . . . . . 100,000 117,544
----------
204,215
----------
TOTAL CONSUMER DISCRETIONARY . . . . . . . . . . . . . . . . . . . . 924,546
----------
CONSUMER STAPLES - 0.15%
BEVERAGES - 0.03%
Diageo Finance BV, 3.875%, 4/1/2011 (Netherlands) (Note 7) . . . . . 30,000 29,200
----------
FOOD & STAPLES RETAILING - 0.05%
The Kroger Co., 7.25%, 6/1/2009. . . . . . . . . . . . . . . . . . . 50,000 54,560
----------
FOOD PRODUCTS - 0.02%
General Mills, Inc., 6.00%, 2/15/2012. . . . . . . . . . . . . . . . 25,000 26,899
----------
HOUSEHOLD PRODUCTS - 0.05%
The Procter & Gamble Co., 4.85%, 12/15/2015. . . . . . . . . . . . . 60,000 60,281
----------
TOTAL CONSUMER STAPLES . . . . . . . . . . . . . . . . . . . . . . . 170,940
----------
ENERGY - 0.30%
ENERGY EQUIPMENT & SERVICES - 0.20%
Transocean Sedco (now known as Transocean, Inc.), 6.625%, 4/15/2011
(Cayman Islands) (Note 7). . . . . . . . . . . . . . . . . . . . . . 210,000 230,122
----------
OIL, GAS & CONSUMABLE FUELS - 0.10%
Amerada Hess Corp., 6.65%, 8/15/2011 . . . . . . . . . . . . . . . . 110,000 118,273
----------
TOTAL ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 348,395
----------
FINANCIALS - 1.00%
CAPITAL MARKETS - 0.23%
The Goldman Sachs Group, Inc., 6.875%, 1/15/2011 . . . . . . . . . . 80,000 88,415
Lehman Brothers Holdings, Inc., 6.625%, 1/18/2012. . . . . . . . . . 80,000 88,384
Merrill Lynch & Co., Inc., 6.00%, 2/17/2009 . . . . . . . . . . . . 80,000 84,334
----------
261,133
----------
COMMERCIAL BANKS - 0.70%
Bank of America Corp., 7.40%, 1/15/2011. . . . . . . . . . . . . . . 200,000 227,523
PNC Funding Corp., 7.50%, 11/1/2009. . . . . . . . . . . . . . . . . 105,000 117,455
U.S. Bank National Association, 6.375%, 8/1/2011 . . . . . . . . . . 210,000 230,381
Wachovia Corp., 5.25%, 8/1/2014. . . . . . . . . . . . . . . . . . . 225,000 230,443
----------
805,802
----------
The accompanying notes are an integral part of the financial statements.
35
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------- ----------------- ---------
FINANCIALS (continued)
DIVERSIFIED FINANCIAL SERVICES - 0.07%
Citigroup, Inc., 5.00%, 9/15/2014. . . . . . . . . $ 85,000 $ 85,561
----------
TOTAL FINANCIALS . . . . . . . . . . . . . . . . . 1,152,496
----------
HEALTH CARE - 0.15%
PHARMACEUTICALS - 0.15%
Abbott Laboratories, 3.50%, 2/17/2009. . . . . . . 90,000 87,790
Schering-Plough Corp.4, 5.55%, 12/1/2013 . . . . . 85,000 88,206
----------
TOTAL HEALTH CARE. . . . . . . . . . . . . . . . . 175,996
----------
INDUSTRIALS - 0.71%
AEROSPACE & DEFENSE - 0.13%
Boeing Capital Corp., 6.50%, 2/15/2012 . . . . . . 80,000 88,098
Honeywell International, Inc., 7.50%, 3/1/2010 . . 50,000 56,552
----------
144,650
----------
AIR FREIGHT & LOGISTICS - 0.08%
FedEx Corp., 3.50%, 4/1/2009 . . . . . . . . . . . 90,000 87,171
----------
AIRLINES - 0.05%
Southwest Airlines Co., 5.25%, 10/1/2014 . . . . . 60,000 59,253
----------
INDUSTRIAL CONGLOMERATES - 0.25%
General Electric Capital Corp., 6.75%, 3/15/2032 . 195,000 232,710
Tyco International Group S.A., 6.375%, 10/15/2011. 55,000 59,602
----------
292,312
----------
MACHINERY - 0.07%
John Deere Capital Corp., 7.00%, 3/15/2012 . . . . 75,000 85,408
----------
ROAD & RAIL - 0.13%
CSX Corp., 6.75%, 3/15/2011. . . . . . . . . . . . 80,000 88,341
Union Pacific Corp., 6.65%, 1/15/2011. . . . . . . 55,000 60,252
----------
148,593
----------
TOTAL INDUSTRIALS. . . . . . . . . . . . . . . . . 817,387
----------
INFORMATION TECHNOLOGY - 0.10%
IT SERVICES - 0.10%
First Data Corp., 3.90%, 10/1/2009 . . . . . . . . 115,000 112,841
----------
MATERIALS - 0.10%
METALS & MINING - 0.10%
Alcoa, Inc., 7.375%, 8/1/2010. . . . . . . . . . . 100,000 113,019
----------
The accompanying notes are an integral part of the financial statements.
36
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------- ----------------- -----------
TELECOMMUNICATION SERVICES - 0.29%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.19%
AT&T Wireless (now known as New Cingular Wireless Services, Inc.),
7.875%, 3/1/2011. . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000 $ 115,055
Verizon Wireless Capital LLC, 5.375%, 12/15/2006. . . . . . . . . . 110,000 112,219
------------
227,274
------------
WIRELESS TELECOMMUNICATION SERVICES - 0.10%
Vodafone Group plc, 7.75%, 2/15/2010 (United Kingdom) (Note 7). . . 100,000 113,848
------------
TOTAL TELECOMMUNICATION SERVICES. . . . . . . . . . . . . . . . . . 341,122
------------
UTILITIES - 0.32%
ELECTRIC UTILITIES - 0.27%
Allegheny Energy Supply Co. LLC2, 8.25%, 4/15/2012. . . . . . . . . 80,000 85,200
American Electric Power Co., Inc., 5.375%, 3/15/2010. . . . . . . . 85,000 87,479
CenterPoint Energy Resources Corp., 7.875%, 4/1/2013. . . . . . . . 50,000 58,888
TXU Energy Co., 7.00%, 3/15/2013. . . . . . . . . . . . . . . . . . 80,000 88,793
------------
320,360
------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.05%
NRG Energy, Inc.2, 8.00%, 12/15/2013. . . . . . . . . . . . . . . . 55,000 55,550
------------
TOTAL UTILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . 375,910
------------
TOTAL CORPORATE BONDS
(Identified Cost $4,538,477). . . . . . . . . . . . . . . . . . . . 4,532,652
------------
U.S. TREASURY SECURITIES - 24.61%
U.S. TREASURY BONDS - 8.42%
U.S. Treasury Bond, 7.50%, 11/15/2024 . . . . . . . . . . . . . . . $ 360,000 493,341
U.S. Treasury Bond, 6.00%, 2/15/2026. . . . . . . . . . . . . . . . 3,450,000 4,082,185
U.S. Treasury Bond, 5.50%, 8/15/2028. . . . . . . . . . . . . . . . 4,575,000 5,151,523
------------
TOTAL U.S. TREASURY BONDS
(Identified Cost $9,121,070). . . . . . . . . . . . . . . . . . . . 9,727,049
------------
U.S. TREASURY NOTES - 16.19%
U.S. Treasury Note, 6.50%, 5/15/2005. . . . . . . . . . . . . . . . 355,000 355,532
U.S. Treasury Note, 1.625%, 9/30/2005 . . . . . . . . . . . . . . . 4,000,000 3,976,720
U.S. Treasury Note, 5.75%, 11/15/2005 . . . . . . . . . . . . . . . 3,435,000 3,481,022
U.S. Treasury Note, 5.875%, 11/15/2005. . . . . . . . . . . . . . . 5,000 5,071
U.S. Treasury Note, 1.875%, 12/31/2005. . . . . . . . . . . . . . . 3,500,000 3,468,419
U.S. Treasury Note, 3.125%, 1/31/2007 . . . . . . . . . . . . . . . 3,000,000 2,975,157
U.S. Treasury Note, 5.625%, 5/15/2008 . . . . . . . . . . . . . . . 5,000 5,268
U.S. Treasury Note, 3.25%, 8/15/2008. . . . . . . . . . . . . . . . 4,500,000 4,427,401
------------
The accompanying notes are an integral part of the financial statements.
37
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MODERATE TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------- ----------------- -----------
TOTAL U.S. TREASURY NOTES
(Identified Cost $18,789,112). . . . . . . . . . . . . . $18,694,590
-----------
TOTAL U.S. TREASURY SECURITIES
(Identified Cost $27,910,182). . . . . . . . . . . . . . 28,421,639
-----------
U.S. GOVERNMENT AGENCIES - 5.24%
MORTGAGE BACKED SECURITIES - 5.17%
Fannie Mae, TBA3, 5.00%, 6/1/2020. . . . . . . . . . . . $ 305,000 306,525
Fannie Mae, TBA3, 4.50%, 7/1/2020. . . . . . . . . . . . 380,000 374,538
Fannie Mae, TBA3, 5.00%, 7/1/2033. . . . . . . . . . . . 680,000 670,012
Fannie Mae, TBA3, 5.50%, 5/1/2035. . . . . . . . . . . . 1,030,000 1,039,656
Fannie Mae, TBA3, 6.00%, 5/1/2035. . . . . . . . . . . . 450,000 461,953
Fannie Mae, TBA3, 6.50%, 5/1/2035. . . . . . . . . . . . 330,000 343,097
Federal Home Loan Mortgage Corp., TBA3, 5.00%, 6/1/2020. 255,000 256,355
Federal Home Loan Mortgage Corp., TBA3, 4.50%, 7/1/2020. 405,000 399,178
Federal Home Loan Mortgage Corp., TBA3, 6.00%, 5/1/2035. 225,000 230,906
Federal Home Loan Mortgage Corp., TBA3, 5.00%, 6/1/2035. 470,000 464,419
Federal Home Loan Mortgage Corp., TBA3, 5.50%, 6/1/2035. 600,000 605,063
GNMA, Pool #286310, 9.00%, 2/15/2020 . . . . . . . . . . 3,157 3,499
GNMA, Pool #288873, 9.50%, 8/15/2020 . . . . . . . . . . 290 327
GNMA, TBA3, 5.50%, 5/15/2033 . . . . . . . . . . . . . . 285,000 289,809
GNMA, TBA3, 5.00%, 6/15/2033 . . . . . . . . . . . . . . 145,000 144,411
GNMA, TBA3, 6.00%, 5/1/2033. . . . . . . . . . . . . . . 170,000 175,259
GNMA, TBA3, 6.50%, 5/1/2035. . . . . . . . . . . . . . . 200,000 209,312
-----------
TOTAL MORTGAGE BACKED SECURITIES
(Identified Cost $5,973,885) . . . . . . . . . . . . . . 5,974,319
-----------
OTHER AGENCIES - 0.07%
Fannie Mae, 5.50%, 2/15/2006 . . . . . . . . . . . . . . 5,000 5,072
Fannie Mae, 4.25%, 7/15/2007 . . . . . . . . . . . . . . 5,000 5,035
Fannie Mae, 5.75%, 2/15/2008 . . . . . . . . . . . . . . 55,000 57,522
Fannie Mae, 5.25%, 1/15/2009 . . . . . . . . . . . . . . 5,000 5,191
Fannie Mae, 6.375%, 6/15/2009. . . . . . . . . . . . . . 10,000 10,828
-----------
TOTAL OTHER AGENCIES
(Identified Cost $82,576). . . . . . . . . . . . . . . . 83,648
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(Identified Cost $6,056,461) . . . . . . . . . . . . . . 6,057,967
-----------
The accompanying notes are an integral part of the financial statements.
38
Investment Portfolio - April 30, 2005 (unaudited)
SHARES/ VALUE
PRO-BLENDR MODERATE TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------- ------------------ ------------
SHORT-TERM INVESTMENTS - 20.80%
Dreyfus Treasury Cash Management - Institutional Shares. 2,220,544 $ 2,220,544
Fannie Mae Discount Note, 5/4/2005 . . . . . . . . . . . $ 5,000,000 4,998,872
Federal Home Loan Bank Discount Note, 5/4/2005 . . . . . 5,000,000 4,998,887
Fannie Mae Discount Note, 6/15/2005. . . . . . . . . . . 560,000 558,063
Federal Home Loan Bank Discount Note, 7/18/2005. . . . . 785,000 780,097
U.S. Treasury Bill, 6/16/2005. . . . . . . . . . . . . . 10,500,000 10,465,140
--------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $24,020,395). . . . . . . . . . . . . . 24,021,603
--------------
TOTAL INVESTMENTS - 105.52%
(Identified Cost $115,272,437) . . . . . . . . . . . . . 121,879,754
LIABILITIES, LESS OTHER ASSETS - (5.52%) . . . . . . . . (6,373,611)
--------------
NET ASSETS - 100%. . . . . . . . . . . . . . . . . . . . $ 115,506,143
==============
*Non-income producing security
1A subsidiary of the company serves as the Fund's sub-accounting services and
sub-transfer agent. An employee of the company serves as an officer of the
Fund.
2Represents securities sold under Rule 144A, which are exempt from registration
under the Securities Act of 1933, as amended. These securities have been
determined to be liquid under guidelines established by the Board of Directors.
These securities amount to $140,750 or 0.12% of the Series' net assets as of
April 30, 2005.
3Security purchased on a forward commitment or when-issued basis. TBA - to be
announced.
4The coupon rate will increase with every ratings downgrade and decrease with
every ratings upgrade. The coupon stated is the rate as of 4/30/05.
ADR - American Depository Receipt
The accompanying notes are an integral part of the financial statements.
39
Statement of Assets and Liabilities - Pro-BlendR Moderate Term Series
(unaudited)
April 30, 2005
ASSETS:
Investments, at value (identified cost $115,272,437) (Note 2). $121,879,754
Foreign currency, at value (cost $4,751) . . . . . . . . . . . 4,741
Receivable for securities sold . . . . . . . . . . . . . . . . 4,399,221
Interest receivable. . . . . . . . . . . . . . . . . . . . . . 362,241
Receivable for fund shares sold. . . . . . . . . . . . . . . . 136,429
Dividends receivable . . . . . . . . . . . . . . . . . . . . . 51,703
Foreign tax reclaims receivable. . . . . . . . . . . . . . . . 25,174
------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . 126,859,263
------------
LIABILITIES:
Accrued management fees (Note 3) . . . . . . . . . . . . . . . 87,704
Accrued fund accounting and transfer agent fees (Note 3) . . . 13,617
Accrued chief compliance officer services (Note 3) . . . . . . 600
Payable for securities purchased . . . . . . . . . . . . . . . 11,178,483
Payable for fund shares repurchased. . . . . . . . . . . . . . 51,186
Audit fees payable . . . . . . . . . . . . . . . . . . . . . . 18,166
Other payables and accrued expenses. . . . . . . . . . . . . . 3,364
------------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . 11,353,120
------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . $115,506,143
============
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . $ 95,260
Additional paid-in-capital . . . . . . . . . . . . . . . . . . 105,364,549
Undistributed net investment income. . . . . . . . . . . . . . 372,082
Accumulated net realized gain on investments and other assets
and liabilities. . . . . . . . . . . . . . . . . . . . . . . . 3,066,063
Net unrealized appreciation on investments and other assets
and liabilities. . . . . . . . . . . . . . . . . . . . . . . . 6,608,189
------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . $115,506,143
============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE - CLASS A ($115,506,143/9,526,013 shares). . . $ 12.13
============
The accompanying notes are an integral part of the financial statements.
40
Statement of Operations - Pro-BlendR Moderate Term Series (unaudited)
For the Six Months Ended April 30, 2005
INVESTMENT INCOME:
Interest . . . . . . . . . . . . . . . . . . . . . . $ 664,235
Dividends (net of foreign tax withheld, $32,033) . . 482,330
-----------
Total Investment Income. . . . . . . . . . . . . . . 1,146,565
-----------
EXPENSES:
Management fees (Note 3) . . . . . . . . . . . . . . 514,782
Fund accounting and transfer agent fees (Note 3) . . 71,395
Directors' fees (Note 3) . . . . . . . . . . . . . . 3,352
Chief compliance officer services (Note 3) . . . . . 2,343
Custodian fees . . . . . . . . . . . . . . . . . . . 12,079
Miscellaneous. . . . . . . . . . . . . . . . . . . . 35,786
-----------
Total Expenses . . . . . . . . . . . . . . . . . . . 639,737
Less reduction of expenses (Note 3). . . . . . . . . (21,108)
-----------
Net Expenses . . . . . . . . . . . . . . . . . . . . 618,629
-----------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . 527,936
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on -
Investments. . . . . . . . . . . . . . . . . . . . . 3,332,567
Foreign currency and other assets and liabilities. . (268)
-----------
3,332,299
-----------
Net change in unrealized appreciation on -
Investments. . . . . . . . . . . . . . . . . . . . . 1,172,836
Foreign currency and other assets and liabilities. . (104)
-----------
1,172,732
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS. . . . . . . . . . . . . . . . . . . . . 4,505,031
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS . . . . . . . . . . . . . . . . . . . . . $5,032,967
===========
The accompanying notes are an integral part of the financial statements.
41
Statements of Changes in Net Assets - Pro-BlendR Moderate Term Series
(unaudited)
FOR THE SIX
MONTHS ENDED FOR THE
4/30/05 YEAR ENDED
(UNAUDITED) 10/31/04
-------------- ------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . $ 527,936 $ 841,041
Net realized gain on investments . . . . . . . . . . . 3,332,299 1,611,315
Net change in unrealized appreciation on investments . 1,172,732 4,026,788
-------------- ------------
Net increase from operations . . . . . . . . . . . . . 5,032,967 6,479,144
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 8):
From net investment income . . . . . . . . . . . . . . (660,663) (654,858)
From net realized gain on investments. . . . . . . . . (1,812,964) (704,843)
-------------- ------------
Total distributions to shareholders. . . . . . . . . . (2,473,627) (1,359,701)
-------------- ------------
CAPITAL STOCK ISSUED AND REPURCHASED:
Net increase from capital share transactions (Note 5). 17,191,049 21,242,966
-------------- ------------
Net increase in net assets . . . . . . . . . . . . . . 19,750,389 26,362,409
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . 95,755,754 69,393,345
-------------- ------------
END OF PERIOD (including undistributed net investment
income of $372,082 and $504,809, respectively) . . . . $ 115,506,143 $95,755,754
============== ============
The accompanying notes are an integral part of the financial statements.
42
Financial Highlights - Pro-BlendR Moderate Term Series (unaudited)
FOR THE SIX
MONTHS ENDED
4/30/05 FOR THE YEARS ENDED
(UNAUDITED) 10/31/04 10/31/03 10/31/02 10/31/01 10/31/00
-------------- --------------------- ---------- ---------- ---------- ---------
PER SHARE DATA (FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD):
NET ASSET VALUE - BEGINNING OF PERIOD. . . . $ 11.81 $ 11.07 $ 10.05 $ 11.06 $ 12.18 $ 11.07
-------------- --------------------- ---------- ---------- ---------- --------
Income (loss) from investment operations:
Net investment income. . . . . . . . . . . . 0.06 0.11 0.10 0.18 0.31 0.41
Net realized and unrealized gain (loss) on
investments. . . . . . . . . . . . . . . . . 0.56 0.85 1.08 (0.50) 0.11 1.30
-------------- --------------------- ---------- ---------- ---------- --------
Total from investment operations . . . . . . 0.62 0.96 1.18 (0.32) 0.42 1.71
-------------- --------------------- ---------- ---------- ---------- --------
Less distributions to shareholders:
From net investment income . . . . . . . . . (0.08) (0.10) (0.16) (0.26) (0.38) (0.35)
From net realized gain on investments. . . . (0.22) (0.12) - (0.43) (1.16) (0.25)
-------------- --------------------- ---------- ---------- ---------- --------
Total distributions to shareholders. . . . . (0.30) (0.22) (0.16) (0.69) (1.54) (0.60)
-------------- --------------------- ---------- ---------- ---------- --------
NET ASSET VALUE - END OF PERIOD. . . . . . . $ 12.13 $ 11.81 $ 11.07 $ 10.05 $ 11.06 $ 12.18
============== ===================== ========== ========== ========== ========
Total return1. . . . . . . . . . . . . . . . 5.29% 8.76% 11.87% (3.32%) 3.59% 16.12%
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL
DATA:
Expenses*. . . . . . . . . . . . . . . . . . 1.20%2 1.20% 1.20% 1.20% 1.20% 1.20%
Net investment income. . . . . . . . . . . . 1.02%2 1.00% 1.05% 1.80% 2.68% 2.84%
Portfolio turnover . . . . . . . . . . . . . 28% 42% 60% 67% 77% 47%
NET ASSETS - END OF PERIOD (000's omitted) . $ 115,506 $ 95,756 $ 69,393 $ 47,671 $ 19,067 $18,040
============== ===================== ========== ========== ========== ========
*The investment advisor did not impose all of its management fee. If these
expenses had been incurred by the Series, the expense ratio (to average net
assets) would have been increased as follows:
0.04%2 0.08% 0.13% 0.23% 0.55% 0.21%
1Represents aggregate total return for the period indicated, and assumes
reinvestment of all distributions. Total return would have been lower had
certain expenses not been waived during the period. Periods less than one year
are not annualized.
2Annualized.
The accompanying notes are an integral part of the financial statements.
43
Performance Update - Pro-BlendR Extended Term Series (unaudited)
Average Annual Total Returns
As of April 30, 2005
---------------------------------------------------------
One Five Ten Since
Year Year Year Inception1
----------------------------- ----- ------ -----------
Exeter Fund, Inc. - Pro-BlendR Extended Term Series2 10.05% 6.96% 10.32% 10.19%
Lehman Brothers U.S. Government/Credit Bond Index3. 5.13% 7.71% 7.22% 6.43%
50%/50% Blended Index3. . . . . . . . . . . . . . . 5.85% 2.66% 9.10% 8.62%
The following graph compares the value of a $10,000 investment in the Exeter
Fund, Inc. - Pro-BlendR Extended Term Series from its inception1 (10/12/93) to
present (4/30/05) to the Lehman Brothers U.S. Government/Credit Bond Index and a
50%/50% Blended Index.
Data for the line graph to follow:
Exeter Fund, Inc. Lehman Brothers 50%/50% Blended
Date Pro-BlendR Extended Term Series U.S. Government/Credit Bond Index Index
- ----------------- ------------------------------- --------------------------------- ------------------
10/12/93 $10,000 $10,000 $10,000
12/31/93 9,982 9,930 9,978
12/31/94 10,333 9,582 9,872
12/31/95 13,707 11,426 12,650
10/31/96 15,078 11,675 13,822
10/31/97 18,047 12,704 16,615
10/31/98 17,947 14,009 19,392
10/31/99 19,824 13,916 21,716
10/31/00 23,557 14,908 23,213
10/31/01 23,881 17,192 21,739
10/31/02 22,511 18,136 20,737
10/31/03 25,990 19,256 23,566
10/31/04 28,984 20,328 25,344
4/30/05 30,662 20,481 25,873
1Performance numbers for the Series are calculated from October 12, 1993, the
Series' inception date. The Lehman Brothers U.S. Government/Credit Bond Index
only publishes month-end numbers; therefore, performance numbers for the Indices
are calculated from October 31, 1993.
2The Series' performance does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of shares. The
Series' performance is historical and may not be indicative of future results.
3The Lehman Brothers U.S. Government/Credit Bond Index is a market value
weighted measure of over 3,000 investment grade corporate, government and
mortgage backed securities with maturities greater than one year. The 50%/50%
Blended Index is 50% Standard & Poor's (S&P) 500 Total Return Index and 50%
Lehman Brothers U.S. Government/Credit Bond Index. The S&P 500 Total Return
Index is an unmanaged capitalization-weighted measure of 500 widely held common
stocks listed on the New York Stock Exchange, American Stock Exchange and the
Over-the-Counter market. Both Indices' returns assume reinvestment of income
and, unlike Series returns, do not reflect any fees or expenses. Because the
Series' asset allocation will vary over time, the composition of the Series'
portfolio may not match the composition of the comparative Indices' portfolios.
44
Shareholder Expense Example - Pro-BlendR Extended Term Series (unaudited)
As a shareholder of the Series, you may incur two types of costs: (1)
transaction costs, including potential wire charges on redemptions and (2)
ongoing costs, including management fees and other Series expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Series and to compare these costs with the ongoing costs of
investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (November 1, 2004 to April 30, 2005).
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Series' actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Series' actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid
during the period. You may use this information to compare the ongoing costs of
investing in the Series 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 costs, such as potential
wire charges on redemptions. Therefore, the second line of the table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
11/1/04 4/30/05 11/1/04-4/30/05
-------------- -------------- ----------------
Actual. . . . . . . . . . . $ 1,000.00 $ 1,057.90 $ 5.97
Hypothetical
(5% return before expenses) $ 1,000.00 $ 1,018.99 $ 5.86
*Expenses are equal to the Series' annualized expense ratio (for the six-month
period) of 1.17%, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period). Expenses are based
on the most recent fiscal half year; therefore, the Series' expense ratio may
differ from the expense ratio based on one-year data in the financial
highlights. The Series' total return would have been lower had certain expenses
not been waived during the period.
45
Portfolio Composition - Pro-BlendR Extended Term Series (unaudited)
As of April 30, 2005
Data for pie chart to follow:
ASSET ALLOCATION*
Common Stocks . . . . . . . . . . . . . . . . . . . . . . . 68.38%
U.S. Government Agencies, cash, short-term investments, and
liabilities, less other assets. . . . . . . . . . . . . . . 2.86%
U.S. Treasury Bonds1. . . . . . . . . . . . . . . . . . . . 9.60%
U.S. Treasury Notes2. . . . . . . . . . . . . . . . . . . . 15.23%
Corporate Bonds . . . . . . . . . . . . . . . . . . . . . . 3.93%
*As a percentage of net assets.
1A U.S. Treasury Bond is a long-term obligation of the U.S. Treasury issued with
a maturity period of more than ten years.
2A U.S. Treasury Note is an intermediate-term obligation of the U.S. Treasury
issued with a maturity period between one and ten years.
SECTOR ALLOCATION*
Consumer Discretionary . . 11.82%
Consumer Staples . . . . . 8.84%
Energy . . . . . . . . . . 7.42%
Financials . . . . . . . . 6.82%
Health Care. . . . . . . . 12.33%
Industrials. . . . . . . . 5.17%
Information Technology . . 5.08%
Materials. . . . . . . . . 2.68%
Telecommunication Services 2.76%
Utilities. . . . . . . . . 3.09%
*Including Common Stocks and Corporate Bonds, as a percentage of total
investments.
TOP TEN STOCK HOLDINGS*
Unilever plc - ADR (United Kingdom). . . . 2.57%
WebMD Corp.. . . . . . . . . . . . . . . . 2.54%
Schering-Plough Corp.. . . . . . . . . . . 2.44%
Vodafone Group plc - ADR (United Kingdom). 2.20%
Time Warner, Inc.. . . . . . . . . . . . . 2.15%
Schlumberger Ltd.. . . . . . . . . . . . . 2.08%
Nestle S.A. (Switzerland). . . . . . . . . 2.07%
Novartis AG - ADR (Switzerland). . . . . . 1.89%
Allegheny Energy, Inc. . . . . . . . . . . 1.62%
GlaxoSmithKline plc - ADR (United Kingdom) 1.45%
*As a percentage of total investments.
46
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- ---------------------------------------------------------- --------- -----------
COMMON STOCKS - 68.38%
CONSUMER DISCRETIONARY - 12.14%
AUTOMOBILES - 0.02%
Bayerische Motoren Werke AG (BMW) (Germany) (Note 7) . . . 1,200 $ 50,533
------------
DIVERSIFIED CONSUMER SERVICES - 1.24%
Weight Watchers International, Inc.* . . . . . . . . . . . 93,025 3,883,794
------------
HOTELS, RESTAURANTS & LEISURE - 1.11%
Carnival Corp. . . . . . . . . . . . . . . . . . . . . . . 63,575 3,107,546
Club Mediterranee S.A.* (France) (Note 7). . . . . . . . . 5,925 279,855
Shangri-La Asia Ltd. (Hong Kong) (Note 7). . . . . . . . . 63,000 96,179
------------
3,483,580
------------
HOUSEHOLD DURABLES - 0.21%
Corporacion GEO S.A. de C.V. - Series B* (Mexico) (Note 7) 49,750 103,723
Hunter Douglas N.V. (Netherlands) (Note 7) . . . . . . . . 2,950 141,084
Interface, Inc. - Class A* . . . . . . . . . . . . . . . . 21,850 131,100
Sony Corp. - ADR (Japan) (Note 7). . . . . . . . . . . . . 7,425 272,572
------------
648,479
------------
INTERNET & CATALOG RETAIL - 0.03%
IAC/InterActiveCorp* . . . . . . . . . . . . . . . . . . . 4,075 88,591
------------
LEISURE EQUIPMENT & PRODUCTS - 0.09%
Callaway Golf Co.. . . . . . . . . . . . . . . . . . . . . 2,275 24,525
Hasbro, Inc. . . . . . . . . . . . . . . . . . . . . . . . 5,000 94,600
K2, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . 2,175 27,666
Sega Sammy Holdings, Inc. (Japan) (Note 7) . . . . . . . . 2,550 150,086
------------
296,877
------------
MEDIA - 6.06%
Acme Communications, Inc.* . . . . . . . . . . . . . . . . 20,450 84,274
Belo Corp. - Class A . . . . . . . . . . . . . . . . . . . 5,425 127,108
Cablevision Systems Corp. - Class A* . . . . . . . . . . . 142,275 3,692,036
The E.W. Scripps Co. - Class A . . . . . . . . . . . . . . 63,900 3,254,427
Harris Interactive, Inc.*. . . . . . . . . . . . . . . . . 39,700 165,152
Impresa S.A. (SGPS)* (Portugal) (Note 7) . . . . . . . . . 19,400 137,573
Media Capital S.A. (SGPS)* (Portugal) (Note 7) . . . . . . 20,250 141,776
News Corp. - Class A . . . . . . . . . . . . . . . . . . . 11,850 181,068
Pearson plc (United Kingdom) (Note 7). . . . . . . . . . . 244,550 2,963,535
PT Multimedia S.A. (SGPS)* (Portugal) (Note 7) . . . . . . 4,325 102,308
Reed Elsevier plc - ADR (United Kingdom) (Note 7). . . . . 7,025 277,347
Time Warner, Inc.* . . . . . . . . . . . . . . . . . . . . 438,050 7,363,620
The accompanying notes are an integral part of the financial statements.
47
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- --------------------------------------------------------- ---------- -----------
CONSUMER DISCRETIONARY (continued)
MEDIA (continued)
VNU N.V. (Netherlands) (Note 7) . . . . . . . . . . . . . 10,794 $ 302,288
Wolters Kluwer N.V. (Netherlands) (Note 7). . . . . . . . 8,425 149,091
------------
18,941,603
------------
MULTILINE RETAIL - 0.02%
Don Quijote Co. Ltd. (Japan) (Note 7) . . . . . . . . . . 1,100 67,156
------------
SPECIALTY RETAIL - 3.32%
Build-A-Bear-Workshop, Inc.*. . . . . . . . . . . . . . . 5,225 140,082
Douglas Holding AG (Germany) (Note 7) . . . . . . . . . . 9,150 308,180
Foot Locker, Inc. . . . . . . . . . . . . . . . . . . . . 2,800 74,648
KOMERI Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . 2,400 60,784
Office Depot, Inc.* . . . . . . . . . . . . . . . . . . . 139,725 2,735,815
RadioShack Corp.. . . . . . . . . . . . . . . . . . . . . 163,000 4,070,110
Staples, Inc. . . . . . . . . . . . . . . . . . . . . . . 156,300 2,980,641
------------
10,370,260
------------
TEXTILES, APPAREL & LUXURY GOODS - 0.04%
LVMH S.A. (Louis Vuitton Moet Hennessy) (France) (Note 7) 1,925 135,023
------------
TOTAL CONSUMER DISCRETIONARY. . . . . . . . . . . . . . . 37,965,896
------------
CONSUMER STAPLES - 9.54%
BEVERAGES - 1.93%
The Coca-Cola Co. . . . . . . . . . . . . . . . . . . . . 71,225 3,094,014
Diageo plc (United Kingdom) (Note 7). . . . . . . . . . . 5,050 74,594
Diageo plc - ADR (United Kingdom) (Note 7). . . . . . . . 45,500 2,718,625
Grupo Modelo S.A. de C.V. - Series C (Mexico) (Note 7). . 25,100 71,546
Scottish & Newcastle plc (United Kingdom) (Note 7). . . . 8,675 75,037
------------
6,033,816
------------
FOOD & STAPLES RETAILING - 1.22%
Carrefour S.A. (France) (Note 7). . . . . . . . . . . . . 71,900 3,470,077
Metro AG (Germany) (Note 7) . . . . . . . . . . . . . . . 1,550 82,088
Pathmark Stores, Inc.*. . . . . . . . . . . . . . . . . . 22,825 176,209
Tesco plc (United Kingdom) (Note 7) . . . . . . . . . . . 14,600 85,817
------------
3,814,191
------------
FOOD PRODUCTS - 5.21%
Cadbury Schweppes plc (United Kingdom) (Note 7) . . . . . 23,650 236,951
Groupe Danone (France) (Note 7) . . . . . . . . . . . . . 950 88,520
The Hain Celestial Group, Inc.* . . . . . . . . . . . . . 4,425 78,544
The accompanying notes are an integral part of the financial statements.
48
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- --------------------------------------------------------------- ---------- -----------
CONSUMER STAPLES (continued)
FOOD PRODUCTS (continued)
Nestle S.A. (Switzerland) (Note 7). . . . . . . . . . . . . . . 27,000 $7,070,783
Unilever plc - ADR (United Kingdom) (Note 7). . . . . . . . . . 229,399 8,799,746
------------
16,274,544
------------
HOUSEHOLD PRODUCTS - 0.18%
Henkel KgaA (Germany) (Note 7). . . . . . . . . . . . . . . . . 1,650 141,641
Kao Corp. (Japan) (Note 7). . . . . . . . . . . . . . . . . . . 3,000 69,398
Kimberly-Clark de Mexico S.A. de C.V. - ADR (Mexico) (Note 7) . 20,400 289,747
Reckitt Benckiser plc (United Kingdom) (Note 7) . . . . . . . . 2,475 79,965
------------
580,751
------------
PERSONAL PRODUCTS - 1.00%
Clarins S.A. (France) (Note 7). . . . . . . . . . . . . . . . . 6,352 382,183
The Estee Lauder Companies, Inc. - Class A. . . . . . . . . . . 66,250 2,544,662
Shiseido Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . . . 15,000 191,167
------------
3,118,012
------------
TOTAL CONSUMER STAPLES. . . . . . . . . . . . . . . . . . . . . 29,821,314
------------
ENERGY - 7.83%
ENERGY EQUIPMENT & SERVICES - 6.11%
Abbot Group plc (United Kingdom) (Note 7) . . . . . . . . . . . 68,025 275,216
Atwood Oceanics, Inc.*. . . . . . . . . . . . . . . . . . . . . 1,700 97,019
Baker Hughes, Inc.. . . . . . . . . . . . . . . . . . . . . . . 65,375 2,884,345
Compagnie Generale de Geophysique S.A. (CGG)* (France) (Note 7) 1,775 139,350
Cooper Cameron Corp.* . . . . . . . . . . . . . . . . . . . . . 30,975 1,701,766
Helmerich & Payne, Inc. . . . . . . . . . . . . . . . . . . . . 6,075 233,523
National-Oilwell Varco, Inc.* . . . . . . . . . . . . . . . . . 28,549 1,134,537
Pride International, Inc.*. . . . . . . . . . . . . . . . . . . 12,075 269,273
Schlumberger Ltd. . . . . . . . . . . . . . . . . . . . . . . . 104,100 7,121,481
Smedvig ASA - Class A (Norway) (Note 7) . . . . . . . . . . . . 11,375 198,656
Transocean, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 47,625 2,208,371
Weatherford International Ltd.* . . . . . . . . . . . . . . . . 54,325 2,833,049
------------
19,096,586
------------
OIL, GAS & CONSUMABLE FUELS - 1.72%
Amerada Hess Corp.. . . . . . . . . . . . . . . . . . . . . . . 46,175 4,324,289
BP plc (United Kingdom) (Note 7). . . . . . . . . . . . . . . . 7,600 77,450
Eni S.p.A. (Italy) (Note 7) . . . . . . . . . . . . . . . . . . 13,075 328,305
Forest Oil Corp.* . . . . . . . . . . . . . . . . . . . . . . . 5,100 196,503
Petroleo Brasileiro S.A. (Petrobras) - ADR (Brazil) (Note 7). . 5,850 214,987
The accompanying notes are an integral part of the financial statements.
49
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------------ ---------- -----------
ENERGY (continued)
OIL, GAS & CONSUMABLE FUELS (continued)
Shell Transport & Trading Co. plc (United Kingdom) (Note 7). . . . 9,325 $ 83,551
Total S.A. (France) (Note 7) . . . . . . . . . . . . . . . . . . . 675 149,855
------------
5,374,940
------------
TOTAL ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,471,526
------------
FINANCIALS - 6.47%
CAPITAL MARKETS - 1.90%
The Bank of New York Co., Inc. . . . . . . . . . . . . . . . . . . 107,350 2,999,359
Deutsche Bank AG (Germany) (Note 7). . . . . . . . . . . . . . . . 3,575 291,475
SEI Investments Co.. . . . . . . . . . . . . . . . . . . . . . . . 80,375 2,637,104
------------
5,927,938
------------
COMMERCIAL BANKS - 3.29%
Banca Intesa S.p.A. (Italy) (Note 7) . . . . . . . . . . . . . . . 30,335 143,964
Banca Monte dei Paschi di Siena S.p.A. (Italy) (Note 7). . . . . . 10,950 38,191
Banco BPI S.A. (Portugal) (Note 7) . . . . . . . . . . . . . . . . 22,825 91,653
Banco Espirito Santo S.A. (BES) (Portugal) (Note 7). . . . . . . . 4,050 68,282
Bayerische Hypo-und Vereinsbank AG (HVB Group)* (Germany) (Note 7) 9,500 224,968
BNP Paribas S.A. (France) (Note 7) . . . . . . . . . . . . . . . . 1,550 101,538
Commerzbank AG* (Germany) (Note 7) . . . . . . . . . . . . . . . . 9,425 205,239
Hong Leong Bank Berhad (Malaysia) (Note 7) . . . . . . . . . . . . 36,300 48,725
Metropolitan Bank & Trust Co. (Philippines) (Note 7) . . . . . . . 315,000 183,478
PNC Financial Services Group, Inc. . . . . . . . . . . . . . . . . 58,900 3,135,247
SanPaolo IMI S.p.A. (Italy) (Note 7) . . . . . . . . . . . . . . . 3,025 44,499
Societe Generale (France) (Note 7) . . . . . . . . . . . . . . . . 675 66,805
U.S. Bancorp . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,750 2,755,125
UniCredito Italiano S.p.A. (Italy) (Note 7). . . . . . . . . . . . 29,175 162,584
Wachovia Corp. . . . . . . . . . . . . . . . . . . . . . . . . . . 58,925 3,015,781
------------
10,286,079
------------
CONSUMER FINANCE - 0.04%
MoneyGram International, Inc.. . . . . . . . . . . . . . . . . . . 2,925 56,745
Takefuji Corp. (Japan) (Note 7). . . . . . . . . . . . . . . . . . 950 60,174
------------
116,919
------------
DIVERSIFIED FINANCIAL SERVICES - 1.01%
ING Groep N.V. (Netherlands) (Note 7). . . . . . . . . . . . . . . 5,250 142,568
Principal Financial Group, Inc.. . . . . . . . . . . . . . . . . . 77,150 3,015,022
------------
3,157,590
------------
The accompanying notes are an integral part of the financial statements.
50
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- ---------------------------------------------- ---------- ---------
FINANCIALS (continued)
INSURANCE - 0.15%
Allianz AG (Germany) (Note 7). . . . . . . . . 750 $ 89,044
Assicurazioni Generali S.p.A. (Italy) (Note 7) 5,100 156,151
Axa (France) (Note 7). . . . . . . . . . . . . 6,550 160,083
Muenchener Rueckver AG (Germany) (Note 7). . . 625 68,356
----------
473,634
----------
REAL ESTATE - 0.06%
SM Prime Holdings, Inc. (Philippines) (Note 7) 1,283,025 175,562
----------
THRIFTS & MORTGAGE FINANCE - 0.02%
Flagstar Bancorp, Inc. . . . . . . . . . . . . 3,975 75,684
----------
TOTAL FINANCIALS . . . . . . . . . . . . . . . 20,213,406
----------
HEALTH CARE - 13.36%
BIOTECHNOLOGY - 0.56%
BioMarin Pharmaceutical, Inc.* . . . . . . . . 54,500 323,185
Caliper Life Sciences, Inc.* . . . . . . . . . 25,000 144,750
Chiron Corp.*. . . . . . . . . . . . . . . . . 11,450 391,017
Diversa Corp.* . . . . . . . . . . . . . . . . 42,600 223,650
Millennium Pharmaceuticals, Inc.*. . . . . . . 42,150 369,234
Neurocrine Biosciences, Inc.*. . . . . . . . . 3,275 114,494
Xenogen Corp.* . . . . . . . . . . . . . . . . 37,250 166,135
----------
1,732,465
----------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.55%
Advanced Neuromodulation Systems, Inc.*. . . . 10,200 307,122
Conceptus, Inc.* . . . . . . . . . . . . . . . 29,575 180,703
DENTSPLY International, Inc. . . . . . . . . . 6,825 373,054
Millipore Corp.* . . . . . . . . . . . . . . . 2,875 138,633
Thermo Electron Corp.* . . . . . . . . . . . . 7,425 185,477
Varian, Inc.*. . . . . . . . . . . . . . . . . 4,950 164,192
Viasys Healthcare, Inc.* . . . . . . . . . . . 16,875 358,425
----------
1,707,606
----------
HEALTH CARE PROVIDERS & SERVICES - 3.87%
Allscripts Healthcare Solutions, Inc.* . . . . 24,200 316,778
American Healthways, Inc.* . . . . . . . . . . 3,775 140,996
AmerisourceBergen Corp.. . . . . . . . . . . . 4,125 252,780
AMN Healthcare Services, Inc.* . . . . . . . . 22,725 335,648
Cross Country Healthcare, Inc.*. . . . . . . . 21,950 353,615
Eclipsys Corp.*. . . . . . . . . . . . . . . . 22,375 302,286
Express Scripts, Inc.* . . . . . . . . . . . . 4,275 383,211
HCA, Inc.. . . . . . . . . . . . . . . . . . . 4,375 244,300
McKesson Corp. . . . . . . . . . . . . . . . . 8,350 308,950
Omnicell, Inc.*. . . . . . . . . . . . . . . . 71,475 439,571
The accompanying notes are an integral part of the financial statements.
51
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------------------ ---------- -----------
HEALTH CARE (continued)
HEALTH CARE PROVIDERS & SERVICES (continued)
Triad Hospitals, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . 6,325 $ 324,156
WebMD Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 915,900 8,701,050
------------
12,103,341
------------
PHARMACEUTICALS - 8.38%
AstraZeneca plc (United Kingdom) (Note 7). . . . . . . . . . . . . . . . 1,450 63,119
AstraZeneca plc - ADR (United Kingdom) (Note 7). . . . . . . . . . . . . 3,150 138,443
Bristol-Myers Squibb Co. . . . . . . . . . . . . . . . . . . . . . . . . 9,925 258,050
GlaxoSmithKline plc (United Kingdom) (Note 7). . . . . . . . . . . . . . 25,600 640,977
GlaxoSmithKline plc - ADR (United Kingdom) (Note 7). . . . . . . . . . . 98,200 4,964,010
Merck & Co., Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,650 259,335
Novartis AG - ADR (Switzerland) (Note 7) . . . . . . . . . . . . . . . . 132,450 6,454,289
Pfizer, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118,175 3,210,815
Roche Holding AG - ADR (Switzerland) (Note 7). . . . . . . . . . . . . . 2,300 138,721
Sanofi-Aventis (France) (Note 7) . . . . . . . . . . . . . . . . . . . . 1,250 110,039
Sanofi-Aventis - ADR (France) (Note 7) . . . . . . . . . . . . . . . . . 2,950 130,892
Schering AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . . . 10,750 705,598
Schering-Plough Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . 400,575 8,360,000
Shire Pharmaceuticals Group plc (United Kingdom) (Note 7). . . . . . . . 7,425 77,438
Takeda Pharmaceutical Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . 1,700 82,868
Watson Pharmaceuticals, Inc.*. . . . . . . . . . . . . . . . . . . . . . 11,600 348,000
Wyeth. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,950 267,393
------------
26,209,987
------------
TOTAL HEALTH CARE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,753,399
------------
INDUSTRIALS - 4.96%
AEROSPACE & DEFENSE - 0.85%
Empresa Brasileira de Aeronautica S.A. (Embraer) - ADR (Brazil) (Note 7) 92,050 2,654,722
------------
AIRLINES - 1.09%
AirTran Holdings, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . 15,500 128,650
Deutsche Lufthansa AG* (Germany) (Note 7). . . . . . . . . . . . . . . . 6,475 83,333
JetBlue Airways Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . 3,875 77,694
Southwest Airlines Co. . . . . . . . . . . . . . . . . . . . . . . . . . 208,850 3,107,688
------------
3,397,365
------------
COMMERCIAL SERVICES & SUPPLIES - 0.32%
Aggreko plc (United Kingdom) (Note 7). . . . . . . . . . . . . . . . . . 23,025 80,082
BWT AG (Austria) (Note 7). . . . . . . . . . . . . . . . . . . . . . . . 4,418 137,828
Herman Miller, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . 3,300 94,380
The accompanying notes are an integral part of the financial statements.
52
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------ ---------- -----------
INDUSTRIALS (continued)
COMMERCIAL SERVICES & SUPPLIES (continued)
Quebecor World, Inc. (Canada) (Note 7) . . . . . . . . . . . 9,100 $ 201,292
Tomra Systems ASA (Norway) (Note 7). . . . . . . . . . . . . 137,200 502,039
------------
1,015,621
------------
CONSTRUCTION & ENGINEERING - 0.19%
Hochtief AG (Germany) (Note 7) . . . . . . . . . . . . . . . 2,625 77,939
Infrasource Services, Inc.*. . . . . . . . . . . . . . . . . 6,225 62,561
Insituform Technologies, Inc. - Class A* . . . . . . . . . . 6,275 93,560
Koninklijke Boskalis Westminster N.V. (Netherlands) (Note 7) 9,728 354,440
------------
588,500
------------
ELECTRICAL EQUIPMENT - 0.12%
Gamesa Corporacion Tecnologica S.A. (Spain) (Note 7) . . . . 9,700 124,714
Global Power Equipment Group, Inc.*. . . . . . . . . . . . . 10,725 97,168
Plug Power, Inc.*. . . . . . . . . . . . . . . . . . . . . . 16,425 91,159
Vestas Wind Systems A/S* (Denmark) (Note 7). . . . . . . . . 4,800 60,358
------------
373,399
------------
INDUSTRIAL CONGLOMERATES - 0.12%
Siemens AG (Germany) (Note 7). . . . . . . . . . . . . . . . 3,325 242,977
Sonae S.A. (SGPS) (Portugal) (Note 7). . . . . . . . . . . . 77,250 122,288
------------
365,265
------------
MACHINERY - 1.17%
AGCO Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . 174,750 3,005,700
Albany International Corp. - Class A . . . . . . . . . . . . 2,900 90,944
FANUC Ltd. (Japan) (Note 7). . . . . . . . . . . . . . . . . 1,000 59,143
Gardner Denver, Inc.*. . . . . . . . . . . . . . . . . . . . 2,850 104,139
Lindsay Manufacturing Co.. . . . . . . . . . . . . . . . . . 3,975 74,173
MAN AG (Germany) (Note 7). . . . . . . . . . . . . . . . . . 3,875 162,431
Wabtec Corp. . . . . . . . . . . . . . . . . . . . . . . . . 7,575 151,500
------------
3,648,030
------------
ROAD & RAIL - 1.10%
CSX Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . 85,950 3,449,174
------------
TOTAL INDUSTRIALS. . . . . . . . . . . . . . . . . . . . . . 15,492,076
------------
INFORMATION TECHNOLOGY - 5.46%
COMMUNICATIONS EQUIPMENT - 1.71%
Cisco Systems, Inc.* . . . . . . . . . . . . . . . . . . . . 271,325 4,688,496
Nokia Oyj - ADR (Finland) (Note 7) . . . . . . . . . . . . . 24,775 395,904
Polycom, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 10,650 162,519
Scientific-Atlanta, Inc. . . . . . . . . . . . . . . . . . . 3,050 93,269
------------
5,340,188
------------
The accompanying notes are an integral part of the financial statements.
53
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------------- --------- -----------
INFORMATION TECHNOLOGY (continued)
COMPUTERS & PERIPHERALS - 0.10%
EMC Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,750 $ 141,040
Logitech International S.A. - ADR* (Switzerland) (Note 7) . . . . . 2,825 163,709
------------
304,749
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.18%
Digital Theater Systems, Inc. (DTS)*. . . . . . . . . . . . . . . . 8,500 143,650
KEYENCE Corp. (Japan) (Note 7). . . . . . . . . . . . . . . . . . . 300 66,393
Mabuchi Motor Co. Ltd. (Japan) (Note 7) . . . . . . . . . . . . . . 800 48,078
Mettler-Toledo International, Inc.* (Switzerland) (Note 7). . . . . 3,900 178,815
Solectron Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . 38,150 125,895
------------
562,831
------------
INTERNET SOFTWARE & SERVICES - 0.06%
Blue Coat Systems, Inc.*. . . . . . . . . . . . . . . . . . . . . . 11,100 159,840
Online Resources Corp.* . . . . . . . . . . . . . . . . . . . . . . 3,775 32,842
------------
192,682
------------
IT SERVICES - 0.95%
The BISYS Group, Inc.*1 . . . . . . . . . . . . . . . . . . . . . . 5,350 75,542
First Data Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . 76,425 2,906,443
------------
2,981,985
------------
OFFICE ELECTRONICS - 0.02%
Canon, Inc. (Japan) (Note 7). . . . . . . . . . . . . . . . . . . . 1,000 52,275
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 1.47%
ATI Technologies, Inc.* (Canada) (Note 7) . . . . . . . . . . . . . 7,150 105,820
Cabot Microelectronics Corp.* . . . . . . . . . . . . . . . . . . . 8,050 231,760
Cymer, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,900 96,681
Exar Corp.* . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,700 110,403
Mindspeed Technologies, Inc.* . . . . . . . . . . . . . . . . . . . 15,075 20,502
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR (Taiwan) (Note 7) 31,961 275,184
Texas Instruments, Inc. . . . . . . . . . . . . . . . . . . . . . . 142,750 3,563,040
Zoran Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,275 203,930
------------
4,607,320
------------
SOFTWARE - 0.97%
Amdocs Ltd.* (Guernsey) (Note 7). . . . . . . . . . . . . . . . . . 11,425 305,162
Blackbaud, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . 17,750 231,638
Business Objects S.A. - ADR* (France) (Note 7). . . . . . . . . . . 11,525 297,460
F-Secure Oyj* (Finland) (Note 7). . . . . . . . . . . . . . . . . . 14,400 35,212
Opsware, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . . . 10,550 50,429
The accompanying notes are an integral part of the financial statements.
54
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- ----------------------------------------------------------------- ---------- -----------
INFORMATION TECHNOLOGY (continued)
SOFTWARE (continued)
SAP AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . . 1,225 $ 191,396
SAP AG - ADR (Germany) (Note 7) . . . . . . . . . . . . . . . . . 3,150 124,205
Secure Computing Corp.* . . . . . . . . . . . . . . . . . . . . . 6,125 54,206
Synopsys, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . 92,100 1,514,124
Verity, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . . 28,625 234,725
------------
3,038,557
------------
TOTAL INFORMATION TECHNOLOGY. . . . . . . . . . . . . . . . . . . 17,080,587
------------
MATERIALS - 2.83%
CHEMICALS - 2.40%
Air Liquide S.A. (France) (Note 7). . . . . . . . . . . . . . . . 742 131,784
Bayer AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . 5,000 163,900
Engelhard Corp. . . . . . . . . . . . . . . . . . . . . . . . . . 103,525 3,170,971
Lanxess* (Germany) (Note 7) . . . . . . . . . . . . . . . . . . . 500 10,302
Lonza Group AG (Switzerland) (Note 7) . . . . . . . . . . . . . . 23,350 1,399,789
Minerals Technologies, Inc. . . . . . . . . . . . . . . . . . . . 40,500 2,645,460
------------
7,522,206
------------
PAPER & FOREST PRODUCTS - 0.43%
Aracruz Celulose S.A. - ADR (Brazil) (Note 7) . . . . . . . . . . 38,750 1,189,625
Sappi Ltd. - ADR (South Africa) (Note 7). . . . . . . . . . . . . 14,975 149,450
------------
1,339,075
------------
TOTAL MATERIALS . . . . . . . . . . . . . . . . . . . . . . . . . 8,861,281
------------
TELECOMMUNICATION SERVICES - 2.73%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.19%
CT Communications, Inc. . . . . . . . . . . . . . . . . . . . . . 1,075 12,341
D&E Communications, Inc.. . . . . . . . . . . . . . . . . . . . . 5,125 42,640
Deutsche Telekom AG (Germany) (Note 7). . . . . . . . . . . . . . 9,150 170,753
Philippine Long Distance Telephone Co. (Philippines) (Note 7) . . 4,350 111,002
Telecom Italia S.p.A. (Italy) (Note 7). . . . . . . . . . . . . . 58,025 195,470
Telefonos de Mexico S.A. de C.V. (Telmex) - ADR (Mexico) (Note 7) 1,975 66,952
------------
599,158
------------
WIRELESS TELECOMMUNICATION SERVICES - 2.54%
Globe Telecom, Inc. (Philippines) (Note 7). . . . . . . . . . . . 5,900 88,369
Maxis Communications Berhad (Malaysia) (Note 7) . . . . . . . . . 32,500 82,544
NTT DoCoMo, Inc. (Japan) (Note 7) . . . . . . . . . . . . . . . . 142 219,441
Vodafone Group plc - ADR (United Kingdom) (Note 7). . . . . . . . 288,800 7,549,232
------------
7,939,586
------------
The accompanying notes are an integral part of the financial statements.
55
Investment Portfolio - April 30, 2005 (unaudited)
SHARES/ VALUE
PRO-BLENDR EXTENDED TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------- ----------------- ----------
TOTAL TELECOMMUNICATION SERVICES. . . . . . . . . . . . . . . . . . $8,538,744
-----------
UTILITIES - 3.06%
ELECTRIC UTILITIES - 1.89%
Allegheny Energy, Inc.* . . . . . . . . . . . . . . . . . . . . . . 227,250 5,553,990
E.ON AG (Germany) (Note 7). . . . . . . . . . . . . . . . . . . . . 3,250 272,925
Westar Energy, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 3,850 88,165
-----------
5,915,080
-----------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 1.07%
NRG Energy, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . 107,450 3,341,695
-----------
MULTI-UTILITIES - 0.10%
Aquila, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,175 158,842
National Grid Transco plc (United Kingdom) (Note 7) . . . . . . . . 8,475 83,254
Suez S.A. (France) (Note 7) . . . . . . . . . . . . . . . . . . . . 2,575 69,926
-----------
312,022
-----------
TOTAL UTILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . 9,568,797
-----------
TOTAL COMMON STOCKS
(Identified Cost $189,336,109). . . . . . . . . . . . . . . . . . . 213,767,026
-----------
CORPORATE BONDS - 3.93%
CONSUMER DISCRETIONARY - 0.80%
MEDIA - 0.40%
AOL Time Warner (now known as Time Warner, Inc.), 6.75%, 4/15/2011. $ 500,000 549,286
Comcast Cable Communications, Inc., 6.75%, 1/30/2011. . . . . . . . 430,000 471,971
The Walt Disney Co., 6.375%, 3/1/2012 . . . . . . . . . . . . . . . 215,000 234,487
-----------
1,255,744
-----------
MULTILINE RETAIL - 0.22%
JC Penney Co., Inc., 8.00%, 3/1/2010. . . . . . . . . . . . . . . . 275,000 301,125
Target Corp., 5.875%, 3/1/2012. . . . . . . . . . . . . . . . . . . 365,000 391,298
-----------
692,423
-----------
SPECIALTY RETAIL - 0.18%
The Gap, Inc.4, 10.05%, 12/15/2008. . . . . . . . . . . . . . . . . 205,000 236,900
Lowe's Companies, Inc., 8.25%, 6/1/2010 . . . . . . . . . . . . . . 265,000 311,491
-----------
548,391
-----------
TOTAL CONSUMER DISCRETIONARY. . . . . . . . . . . . . . . . . . . . 2,496,558
-----------
The accompanying notes are an integral part of the financial statements.
56
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------------------- ----------------- ---------
CONSUMER STAPLES - 0.15%
BEVERAGES - 0.03%
Diageo Finance BV, 3.875%, 4/1/2011 (Netherlands) (Note 7) . . . . . $ 80,000 $ 77,867
----------
FOOD & STAPLES RETAILING - 0.05%
The Kroger Co., 7.25%, 6/1/2009. . . . . . . . . . . . . . . . . . . 140,000 152,768
----------
FOOD PRODUCTS - 0.02%
General Mills, Inc., 6.00%, 2/15/2012. . . . . . . . . . . . . . . . 70,000 75,319
----------
HOUSEHOLD PRODUCTS - 0.05%
The Procter & Gamble Co., 4.85%, 12/15/2015. . . . . . . . . . . . . 155,000 155,726
----------
TOTAL CONSUMER STAPLES . . . . . . . . . . . . . . . . . . . . . . . 461,680
----------
ENERGY - 0.30%
ENERGY EQUIPMENT & SERVICES - 0.20%
Transocean Sedco (now known as Transocean, Inc.), 6.625%, 4/15/2011
(Cayman Islands) (Note 7). . . . . . . . . . . . . . . . . . . . . . 565,000 619,137
----------
OIL, GAS & CONSUMABLE FUELS - 0.10%
Amerada Hess Corp., 6.65%, 8/15/2011 . . . . . . . . . . . . . . . . 295,000 317,188
----------
TOTAL ENERGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 936,325
----------
FINANCIALS - 1.00%
CAPITAL MARKETS - 0.23%
The Goldman Sachs Group, Inc., 6.875%, 1/15/2011 . . . . . . . . . . 215,000 237,617
Lehman Brothers Holdings, Inc., 6.625%, 1/18/2012. . . . . . . . . . 215,000 237,533
Merrill Lynch & Co., Inc., 6.00%, 2/17/2009 . . . . . . . . . . . . 225,000 237,189
----------
712,339
----------
COMMERCIAL BANKS - 0.70%
Bank of America Corp., 7.40%, 1/15/2011. . . . . . . . . . . . . . . 545,000 620,001
PNC Funding Corp., 7.50%, 11/1/2009. . . . . . . . . . . . . . . . . 280,000 313,214
U.S. Bank National Association, 6.375%, 8/1/2011 . . . . . . . . . . 575,000 630,804
Wachovia Corp., 5.25%, 8/1/2014. . . . . . . . . . . . . . . . . . . 615,000 629,877
----------
2,193,896
----------
DIVERSIFIED FINANCIAL SERVICES - 0.07%
Citigroup, Inc., 5.00%, 9/15/2014. . . . . . . . . . . . . . . . . . 235,000 236,551
----------
TOTAL FINANCIALS . . . . . . . . . . . . . . . . . . . . . . . . . . 3,142,786
----------
HEALTH CARE - 0.15%
PHARMACEUTICALS - 0.15%
Abbott Laboratories, 3.50%, 2/17/2009. . . . . . . . . . . . . . . . 240,000 234,106
Schering-Plough Corp.4, 5.55%, 12/1/2013 . . . . . . . . . . . . . . 225,000 233,487
----------
TOTAL HEALTH CARE. . . . . . . . . . . . . . . . . . . . . . . . . . 467,593
----------
The accompanying notes are an integral part of the financial statements.
57
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- ------------------------------------------------------------------- ----------------- ---------
INDUSTRIALS - 0.71%
AEROSPACE & DEFENSE - 0.13%
Boeing Capital Corp., 6.50%, 2/15/2012. . . . . . . . . . . . . . . $ 215,000 $236,763
Honeywell International, Inc., 7.50%, 3/1/2010. . . . . . . . . . . 140,000 158,345
----------
395,108
----------
AIR FREIGHT & LOGISTICS - 0.07%
FedEx Corp., 3.50%, 4/1/2009. . . . . . . . . . . . . . . . . . . . 240,000 232,456
----------
AIRLINES - 0.05%
Southwest Airlines Co., 5.25%, 10/1/2014. . . . . . . . . . . . . . 160,000 158,008
----------
INDUSTRIAL CONGLOMERATES - 0.25%
General Electric Capital Corp., 6.75%, 3/15/2032. . . . . . . . . . 535,000 638,462
Tyco International Group S.A., 6.375%, 10/15/2011 . . . . . . . . . 145,000 157,132
----------
795,594
----------
MACHINERY - 0.08%
John Deere Capital Corp., 7.00%, 3/15/2012. . . . . . . . . . . . . 205,000 233,449
----------
ROAD & RAIL - 0.13%
CSX Corp., 6.75%, 3/15/2011 . . . . . . . . . . . . . . . . . . . . 215,000 237,418
Union Pacific Corp., 6.65%, 1/15/2011 . . . . . . . . . . . . . . . 145,000 158,846
----------
396,264
----------
TOTAL INDUSTRIALS . . . . . . . . . . . . . . . . . . . . . . . . . 2,210,879
----------
INFORMATION TECHNOLOGY - 0.10%
IT SERVICES - 0.10%
First Data Corp., 3.90%, 10/1/2009. . . . . . . . . . . . . . . . . 320,000 313,991
----------
MATERIALS - 0.10%
METALS & MINING - 0.10%
Alcoa, Inc., 7.375%, 8/1/2010 . . . . . . . . . . . . . . . . . . . 275,000 310,802
----------
TELECOMMUNICATION SERVICES - 0.29%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.19%
AT&T Wireless (now known as New Cingular Wireless Services, Inc.),
7.875%, 3/1/2011 . . . . . . . . . . . . . . . . . . . . . . . . . 270,000 310,649
Verizon Wireless Capital LLC, 5.375%, 12/15/2006. . . . . . . . . . 300,000 306,051
----------
616,700
----------
WIRELESS TELECOMMUNICATION SERVICES - 0.10%
Vodafone Group plc, 7.75%, 2/15/2010 (United Kingdom) (Note 7). . . 270,000 307,390
----------
TOTAL TELECOMMUNICATION SERVICES. . . . . . . . . . . . . . . . . . 924,090
----------
UTILITIES - 0.33%
ELECTRIC UTILITIES - 0.28%
Allegheny Energy Supply Co. LLC2, 8.25%, 4/15/2012. . . . . . . . . 220,000 234,300
The accompanying notes are an integral part of the financial statements.
58
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR EXTENDED TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------- ----------------- ------------
UTILITIES (continued)
ELECTRIC UTILITIES (continued)
American Electric Power Co., Inc., 5.375%, 3/15/2010 . . $ 230,000 $ 236,707
CenterPoint Energy Resources Corp., 7.875%, 4/1/2013 . . 135,000 158,997
TXU Energy Co., 7.00%, 3/15/2013 . . . . . . . . . . . . 215,000 238,632
-------------
868,636
-------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.05%
NRG Energy, Inc.2, 8.00%, 12/15/2013 . . . . . . . . . . 150,000 151,500
-------------
TOTAL UTILITIES. . . . . . . . . . . . . . . . . . . . . 1,020,136
-------------
TOTAL CORPORATE BONDS
(Identified Cost $12,300,660). . . . . . . . . . . . . . 12,284,840
-------------
U.S. TREASURY SECURITIES - 24.83%
U.S. TREASURY BONDS - 9.60%
U.S. Treasury Bond, 7.25%, 8/15/2022 . . . . . . . . . . 5,000 6,585
U.S. Treasury Bond, 6.00%, 2/15/2026 . . . . . . . . . . 6,035,000 7,140,866
U.S. Treasury Bond, 5.50%, 8/15/2028 . . . . . . . . . . 20,310,000 22,869,385
-------------
TOTAL U.S. TREASURY BONDS
(Identified Cost $27,330,760). . . . . . . . . . . . . . 30,016,836
-------------
U.S. TREASURY NOTES - 15.23%
U.S. Treasury Note, 1.625%, 9/30/2005. . . . . . . . . . 8,500,000 8,450,530
U.S. Treasury Note, 1.875%, 12/31/2005 . . . . . . . . . 15,000,000 14,864,655
U.S. Treasury Note, 3.125%, 1/31/2007. . . . . . . . . . 8,000,000 7,933,752
U.S. Treasury Note, 3.00%, 2/15/2008 . . . . . . . . . . 16,700,000 16,380,345
-------------
TOTAL U.S. TREASURY NOTES
(Identified Cost $48,421,611). . . . . . . . . . . . . . 47,629,282
-------------
TOTAL U.S. TREASURY SECURITIES
(Identified Cost $75,752,371). . . . . . . . . . . . . . 77,646,118
-------------
U.S. GOVERNMENT AGENCIES - 5.24%
MORTGAGE BACKED SECURITIES - 5.18%
Fannie Mae, TBA3, 5.00%, 6/1/2020. . . . . . . . . . . . 825,000 829,125
Fannie Mae, TBA3, 4.50%, 7/1/2020. . . . . . . . . . . . 1,025,000 1,010,266
Fannie Mae, TBA3, 5.00%, 7/1/2033. . . . . . . . . . . . 1,840,000 1,812,974
Fannie Mae, TBA3, 5.50%, 5/1/2035. . . . . . . . . . . . 2,790,000 2,816,156
Fannie Mae, TBA3, 6.00%, 5/1/2035. . . . . . . . . . . . 1,220,000 1,252,406
Fannie Mae, TBA3, 6.50%, 5/1/2035. . . . . . . . . . . . 895,000 930,521
Federal Home Loan Mortgage Corp., TBA3, 5.00%, 6/1/2020. 695,000 698,692
Federal Home Loan Mortgage Corp., TBA3, 4.50%, 7/1/2020. 1,105,000 1,089,116
Federal Home Loan Mortgage Corp., TBA3, 6.00%, 5/1/2035. 610,000 626,012
The accompanying notes are an integral part of the financial statements.
59
Investment Portfolio - April 30, 2005 (unaudited)
PRINCIPAL AMOUNT/ VALUE
PRO-BLENDR EXTENDED TERM SERIES SHARES (NOTE 2)
- -------------------------------------------------------- ------------------- ------------
MORTGAGE BACKED SECURITIES (continued)
Federal Home Loan Mortgage Corp., TBA3, 5.00%, 6/1/2035. $ 1,270,000 $ 1,254,919
Federal Home Loan Mortgage Corp., TBA3, 5.50%, 6/1/2035. 1,630,000 1,643,754
GNMA, TBA3, 5.50%, 5/15/2033 . . . . . . . . . . . . . . 775,000 788,078
GNMA, TBA3, 5.00%, 6/15/2033 . . . . . . . . . . . . . . 395,000 393,395
GNMA, TBA3, 6.00%, 5/1/2033. . . . . . . . . . . . . . . 460,000 474,231
GNMA, TBA3, 6.50%, 5/1/2035. . . . . . . . . . . . . . . 535,000 559,911
--------------
TOTAL MORTGAGE BACKED SECURITIES
(Identified Cost $16,179,022). . . . . . . . . . . . . . 16,179,556
--------------
OTHER AGENCIES - 0.06%
Fannie Mae, 4.25%, 7/15/2007 . . . . . . . . . . . . . . 190,000 191,327
Fannie Mae, 5.75%, 2/15/2008 . . . . . . . . . . . . . . 5,000 5,229
--------------
TOTAL OTHER AGENCIES
(Identified Cost $200,705) . . . . . . . . . . . . . . . 196,556
--------------
TOTAL U.S. GOVERNMENT AGENCIES
(Identified Cost $16,379,727). . . . . . . . . . . . . . 16,376,112
--------------
SHORT-TERM INVESTMENTS - 7.14%
Dreyfus Treasury Cash Management - Institutional Shares. 6,718,049 6,718,049
Fannie Mae Discount Note, 6/6/2005 . . . . . . . . . . . $ 12,000,000 11,965,920
Federal Home Loan Bank Discount Note, 6/15/2005. . . . . 1,520,000 1,514,742
Federal Home Loan Bank Discount Note, 7/18/2005. . . . . 2,130,000 2,116,697
--------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $22,315,408). . . . . . . . . . . . . . 22,315,408
--------------
TOTAL INVESTMENTS - 109.52%
(Identified Cost $316,084,275) . . . . . . . . . . . . . 342,389,504
LIABILITIES, LESS OTHER ASSETS - (9.52%) . . . . . . . . (29,774,167)
--------------
NET ASSETS - 100%. . . . . . . . . . . . . . . . . . . . $ 312,615,337
==============
*Non-income producing security
1A subsidiary of the company serves as the Fund's sub-accounting services and
sub-transfer agent. An employee of the company serves as an officer of the
Fund.
2Represents securities sold under Rule 144A, which are exempt from registration
under the Securities Act of 1933, as amended. These securities have been
determined to be liquid under guidelines established by the Board of Directors.
These securities amount to $385,800 or 0.12% of the Series' net assets as of
April 30, 2005.
3Security purchased on a forward commitment or when-issued basis. TBA - to be
announced.
4The coupon rate will increase with every ratings downgrade and decrease with
every ratings upgrade. The coupon stated is the rate as of 4/30/05.
ADR - American Depository Receipt
The accompanying notes are an integral part of the financial statements.
60
Statement of Assets and Liabilities - Pro-BlendR Extended Term Series
(unaudited)
April 30, 2005
ASSETS:
Investments, at value (identified cost $316,084,275) (Note 2). . $342,389,504
Foreign currency, at value (cost $19,197). . . . . . . . . . . . 19,152
Interest receivable. . . . . . . . . . . . . . . . . . . . . . . 771,691
Receivable for fund shares sold. . . . . . . . . . . . . . . . . 208,686
Dividends receivable . . . . . . . . . . . . . . . . . . . . . . 185,790
Receivable for securities sold . . . . . . . . . . . . . . . . . 146,118
Foreign tax reclaims receivable. . . . . . . . . . . . . . . . . 81,268
------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . 343,802,209
------------
LIABILITIES:
Accrued management fees (Note 3) . . . . . . . . . . . . . . . . 244,350
Accrued fund accounting and transfer agent fees (Note 3) . . . . 31,203
Accrued chief compliance officer services (Note 3) . . . . . . . 600
Payable for securities purchased . . . . . . . . . . . . . . . . 30,750,666
Payable for fund shares repurchased. . . . . . . . . . . . . . . 133,461
Audit fees payable . . . . . . . . . . . . . . . . . . . . . . . 21,186
Other payables and accrued expenses. . . . . . . . . . . . . . . 5,406
------------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . . 31,186,872
------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . $312,615,337
============
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . $ 210,336
Additional paid-in-capital . . . . . . . . . . . . . . . . . . . 277,834,861
Undistributed net investment income. . . . . . . . . . . . . . . 1,007,828
Accumulated net realized gain on investments and other assets
and liabilities. . . . . . . . . . . . . . . . . . . . . . . . . 7,253,769
Net unrealized appreciation on investments and other assets and
liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . 26,308,543
------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . $312,615,337
============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE - CLASS A ($312,615,337/21,033,662 shares) . . . $ 14.86
============
The accompanying notes are an integral part of the financial statements.
61
Statement of Operations - Pro-BlendR Extended Term Series (unaudited)
For the Six Months Ended April 30, 2005
INVESTMENT INCOME:
Dividends (net of foreign tax withheld, $108,858). . $ 1,689,371
Interest . . . . . . . . . . . . . . . . . . . . . . 1,377,630
------------
Total Investment Income. . . . . . . . . . . . . . . 3,067,001
------------
EXPENSES:
Management fees (Note 3) . . . . . . . . . . . . . . 1,484,118
Fund accounting and transfer agent fees (Note 3) . . 195,868
Directors' fees (Note 3) . . . . . . . . . . . . . . 3,352
Chief compliance officer services (Note 3) . . . . . 2,343
Custodian fees . . . . . . . . . . . . . . . . . . . 22,800
Miscellaneous. . . . . . . . . . . . . . . . . . . . 53,712
------------
Total Expenses . . . . . . . . . . . . . . . . . . . 1,762,193
Less reduction of expenses (Note 3). . . . . . . . . (23,040)
------------
Net Expenses . . . . . . . . . . . . . . . . . . . . 1,739,153
------------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . 1,327,848
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on -
Investments. . . . . . . . . . . . . . . . . . . . . 7,961,450
Foreign currency and other assets and liabilities. . (686)
------------
7,960,764
------------
Net change in unrealized appreciation on -
Investments. . . . . . . . . . . . . . . . . . . . . 6,873,562
Foreign currency and other assets and liabilities. . (333)
------------
6,873,229
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS. . . . . . . . . . . . . . . . . . . . . 14,833,993
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS . . . . . . . . . . . . . . . . . . . . . $16,161,841
============
The accompanying notes are an integral part of the financial statements.
62
Statements of Changes in Net Assets - Pro-BlendR Extended Term Series
(unaudited)
FOR THE SIX
MONTHS ENDED FOR THE
4/30/05 YEAR ENDED
(UNAUDITED) 10/31/04
------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . $ 1,327,848 $ 2,119,940
Net realized gain on investments . . . . . . . . . . . 7,960,764 6,426,030
Net change in unrealized appreciation on investments . 6,873,229 16,562,167
-------------- -------------
Net increase from operations . . . . . . . . . . . . . 16,161,841 25,108,137
-------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 8):
From net investment income . . . . . . . . . . . . . . (1,401,021) (1,777,536)
From net realized gain on investments. . . . . . . . . (6,925,216) (1,383,424)
-------------- -------------
Total distributions to shareholders. . . . . . . . . . (8,326,237) (3,160,960)
-------------- -------------
CAPITAL STOCK ISSUED AND REPURCHASED:
Net increase from capital share transactions
(Note 5) . . . . . . . . . . . . . . . . . . . . . . . 29,182,514 44,612,219
-------------- -------------
Net increase in net assets . . . . . . . . . . . . . . 37,018,118 66,559,396
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . 275,597,219 209,037,823
-------------- -------------
END OF PERIOD (including undistributed net investment
income of $1,007,828 and $1,081,001, respectively) . . $ 312,615,337 $275,597,219
============== =============
The accompanying notes are an integral part of the financial statements.
63
Financial Highlights - Pro-BlendR Extended Term Series (unaudited)
FOR THE SIX
MONTHS ENDED
4/30/05 FOR THE YEARS ENDED
(UNAUDITED) 10/31/04 10/31/03 10/31/02 10/31/01
-------------- --------------------- ---------- ---------- ----------
PER SHARE DATA (FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD):
NET ASSET VALUE - BEGINNING OF PERIOD. . . . . . . $ 14.45 $ 13.14 $ 11.55 $ 13.09 $ 14.03
-------------- --------------------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income. . . . . . . . . . . . . . . 0.06 0.11 0.11 0.19 0.32
Net realized and unrealized gain (loss) on
investments. . . . . . . . . . . . . . . . . . . . 0.78 1.39 1.66 (0.86) (0.13)
-------------- --------------------- ---------- ---------- ----------
Total from investment operations . . . . . . . . . 0.84 1.50 1.77 (0.67) 0.19
-------------- --------------------- ---------- ---------- ----------
Less distributions to shareholders:
From net investment income . . . . . . . . . . . . (0.07) (0.10) (0.18) (0.25) (0.35)
From net realized gain on investments. . . . . . . (0.36) (0.09) - (0.62) (0.78)
-------------- --------------------- ---------- ---------- ----------
Total distributions to shareholders. . . . . . . . (0.43) (0.19) (0.18) (0.87) (1.13)
-------------- --------------------- ---------- ---------- ----------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . $ 14.86 $ 14.45 $ 13.14 $ 11.55 $ 13.09
============== ===================== ========== ========== ==========
Total return1. . . . . . . . . . . . . . . . . . . 5.79% 11.52% 15.45% (5.74%) 1.37%
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL DATA:
Expenses*. . . . . . . . . . . . . . . . . . . . . 1.17%2 1.17% 1.17% 1.19% 1.20%
Net investment income. . . . . . . . . . . . . . . 0.89%2 0.86% 0.90% 1.61% 2.26%
Portfolio turnover . . . . . . . . . . . . . . . . 25% 50% 67% 82% 75%
NET ASSETS - END OF PERIOD (000's omitted) . . . . $ 312,615 $ 275,597 $ 209,038 $ 156,182 $ 87,460
============== ===================== ========== ========== ==========
FOR THE
YEAR ENDED
10/31/00
----------
PER SHARE DATA (FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD):
NET ASSET VALUE - BEGINNING OF PERIOD. . . . . . . $ 12.74
--------
Income (loss) from investment operations:
Net investment income. . . . . . . . . . . . . . . 0.29
Net realized and unrealized gain (loss) on
investments. . . . . . . . . . . . . . . . . . . . 1.97
--------
Total from investment operations . . . . . . . . . 2.26
--------
Less distributions to shareholders:
From net investment income . . . . . . . . . . . . (0.28)
From net realized gain on investments. . . . . . . (0.69)
--------
Total distributions to shareholders. . . . . . . . (0.97)
--------
NET ASSET VALUE - END OF PERIOD. . . . . . . . . . $ 14.03
========
Total return1. . . . . . . . . . . . . . . . . . . 18.83%
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL DATA:
Expenses*. . . . . . . . . . . . . . . . . . . . . 1.20%
Net investment income. . . . . . . . . . . . . . . 2.55%
Portfolio turnover . . . . . . . . . . . . . . . . 95%
NET ASSETS - END OF PERIOD (000's omitted) . . . . $89,672
========
*The investment advisor did not impose all of its management fee. If these
expenses had been incurred by the Series, the expense ratio (to average net
assets) would have been increased as follows:
0.02%2 0.04% N/A N/A 0.03% N/A
1Represents aggregate total return for the period indicated, and assumes
reinvestment of all distributions. Total return would have been lower had
certain expenses not been waived during the period. Periods less than one year
are not annualized.
2Annualized.
The accompanying notes are an integral part of the financial statements.
64
Performance Update - Pro-BlendR Maximum Term Series (unaudited)
Average Annual Total Returns
As of April 30, 2005
--------------------------------------------------
One Five Since
Year Year Inception1
----------------------------- ------ -----------
Exeter Fund, Inc. - Pro-BlendR Maximum Term Series2 9.41% 6.37% 11.31%
Standard & Poor's (S&P) 500 Total Return Index3. . . 6.33% -2.94% 9.27%
85%/15% Blended Index3 . . . . . . . . . . . . . . . 6.21% -1.21% 9.08%
The following graph compares the value of a $10,000 investment in the Exeter
Fund, Inc. - Pro-BlendR Maximum Term Series from its inception1 (11/1/95) to
present (4/30/05) to the S&P 500 Total Return Index and an 85%/15% Blended
Index.
Data for line graph to follow:
Exeter Fund, Inc. S&P 500
Date Pro-BlendR Maximum Term Series Total Return Index 85%/15% Blended Index
11/1/95 $10,000 $10,000 $10,000
10/31/96 11,521 12,408 12,114
10/31/97 14,604 16,392 15,565
10/31/98 13,730 19,996 18,764
10/31/99 17,345 25,127 22,788
10/31/00 22,263 26,656 24,243
10/31/01 20,926 20,022 19,482
10/31/02 18,692 16,999 17,158
10/31/03 22,656 20,532 20,364
10/31/04 26,100 22,464 22,168
4/30/05 27,672 23,200 22,819
1Performance numbers for the Series and Indices are calculated from November 1,
1995, the Series' inception date.
2The Series' performance does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of shares. The
Series' performance is historical and may not be indicative of future results.
3The S&P 500 Total Return Index is an unmanaged capitalization-weighted measure
of 500 widely held common stocks listed on the New York Stock Exchange, American
Stock Exchange and the Over-the-Counter market. The 85%/15% Blended Index is
85% S&P 500 Total Return Index and 15% Lehman Brothers U.S. Government/Credit
Bond Index. The Lehman Brothers U.S. Government/Credit Bond Index is a market
value weighted measure of over 3,000 investment grade corporate, government and
mortgage backed securities with maturities greater than one year. Both Indices'
returns assume reinvestment of income and, unlike Series returns, do not reflect
any fees or expenses. Because the Series' asset allocation will vary over time,
the composition of the Series' portfolio may not match the composition of the
comparative Indices' portfolios.
65
Shareholder Expense Example - Pro-BlendR Maximum Term Series (unaudited)
As a shareholder of the Series, you may incur two types of costs: (1)
transaction costs, including potential wire charges on redemptions and (2)
ongoing costs, including management fees and other Series expenses. This
example is intended to help you understand your ongoing costs (in dollars) of
investing in the Series and to compare these costs with the ongoing costs of
investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period (November 1, 2004 to April 30, 2005).
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Series' actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Series' actual return. The hypothetical account values and expenses may not
be used to estimate the actual ending account balance or expenses you paid
during the period. You may use this information to compare the ongoing costs of
investing in the Series 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 costs, such as potential
wore charges on redemptions. Therefore, the second line of the table is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds. In addition, if these transaction costs
were included, your costs would have been higher.
BEGINNING ENDING EXPENSES PAID
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD*
11/1/04 4/30/05 11/1/04-4/30/05
-------------- -------------- ----------------
Actual. . . . . . . . . . . $ 1,000.00 $ 1,060.20 $ 6.13
Hypothetical
(5% return before expenses) $ 1,000.00 $ 1,018.84 $ 6.01
*Expenses are equal to the Series' annualized expense ratio (for the six-month
period) of 1.20%, multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period). Expenses are based
on the most recent fiscal half year; therefore, the Series' expense ratio may
differ from the expense ratio based on one-year data in the financial
highlights. The Series' total return would have been lower had certain expenses
not been waived during the period.
66
Portfolio Composition - Pro-BlendR Maximum Term Series (unaudited)
As of April 30, 2005
Data for pie chart to follow:
ASSET ALLOCATION*
Cash, short-term investments, and liabilities, less other assets 7.29%
Common Stocks. . . . . . . . . . . . . . . . . . . . . . . . . . 85.47%
U.S. Treasury Bonds1 . . . . . . . . . . . . . . . . . . . . . . 7.24%
*As a percentage of net assets.
1A U.S. Treasury Bond is a long-term obligation of the U.S. Treasury issued with
a maturity period of more than ten years.
STOCK SECTOR ALLOCATION*
Consumer Discretionary . . 14.80%
Consumer Staples . . . . . 11.00%
Energy . . . . . . . . . . 9.08%
Financials . . . . . . . . 8.12%
Health Care. . . . . . . . 15.04%
Industrials. . . . . . . . 7.00%
Information Technology . . 7.80%
Materials. . . . . . . . . 4.97%
Telecommunication Services 3.36%
Utilities. . . . . . . . . 3.50%
*As a percentage of total investments.
TOP TEN STOCK HOLDINGS*
Nestle S.A. (Switzerland) . . . . . . . . . . 3.13%
Schering-Plough Corp. . . . . . . . . . . . . 3.10%
Vodafone Group plc - ADR (United Kingdom) . . 2.82%
WebMD Corp. . . . . . . . . . . . . . . . . . 2.68%
Unilever plc - ADR (United Kingdom) . . . . . 2.62%
Schlumberger Ltd. . . . . . . . . . . . . . . 2.53%
Time Warner, Inc. . . . . . . . . . . . . . . 2.42%
Novartis AG - ADR (Switzerland) . . . . . . . 2.32%
Cablevision Systems New York Group - Class A. 2.26%
Allegheny Energy, Inc.. . . . . . . . . . . . 1.91%
*As a percentage of total investments.
67
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MAXIMUM TERM SERIES SHARES (NOTE 2)
- ---------------------------------------------------------- --------- -----------
COMMON STOCKS - 85.47%
CONSUMER DISCRETIONARY - 14.90%
AUTOMOBILES - 0.02%
Bayerische Motoren Werke AG (BMW) (Germany) (Note 7) . . . 525 $ 22,108
------------
DIVERSIFIED CONSUMER SERVICES - 1.45%
Weight Watchers International, Inc.* . . . . . . . . . . . 53,525 2,234,669
------------
HOTELS, RESTAURANTS & LEISURE - 1.31%
Carnival Corp. . . . . . . . . . . . . . . . . . . . . . . 36,200 1,769,456
Club Mediterranee S.A.* (France) (Note 7). . . . . . . . . 3,725 175,943
Mikohn Gaming Corp.* . . . . . . . . . . . . . . . . . . . 2,450 34,594
Shangri-La Asia Ltd. (Hong Kong) (Note 7). . . . . . . . . 25,000 38,166
------------
2,018,159
------------
HOUSEHOLD DURABLES - 0.26%
Corporacion GEO S.A. de C.V. - Series B* (Mexico) (Note 7) 22,025 45,919
Hunter Douglas N.V. (Netherlands) (Note 7) . . . . . . . . 1,450 69,346
Interface, Inc. - Class A* . . . . . . . . . . . . . . . . 10,575 63,450
Libbey, Inc. . . . . . . . . . . . . . . . . . . . . . . . 750 13,148
Sony Corp. - ADR (Japan) (Note 7). . . . . . . . . . . . . 5,475 200,987
------------
392,850
------------
INTERNET & CATALOG RETAIL - 0.08%
IAC/InterActiveCorp* . . . . . . . . . . . . . . . . . . . 6,000 130,440
------------
LEISURE EQUIPMENT & PRODUCTS - 0.13%
Callaway Golf Co.. . . . . . . . . . . . . . . . . . . . . 2,975 32,070
Hasbro, Inc. . . . . . . . . . . . . . . . . . . . . . . . 2,275 43,043
K2, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . 1,475 18,762
Leapfrog Enterprises, Inc. - Class A*. . . . . . . . . . . 2,925 29,279
Sega Sammy Holdings, Inc. (Japan) (Note 7) . . . . . . . . 1,200 70,629
------------
193,783
------------
MEDIA - 7.66%
Acme Communications, Inc.* . . . . . . . . . . . . . . . . 12,250 50,482
Belo Corp. - Class A . . . . . . . . . . . . . . . . . . . 2,600 60,918
Cablevision Systems Corp. - Class A* . . . . . . . . . . . 135,025 3,503,899
The E.W. Scripps Co. - Class A . . . . . . . . . . . . . . 34,900 1,777,457
Harris Interactive, Inc.*. . . . . . . . . . . . . . . . . 35,625 148,200
Impresa S.A. (SGPS)* (Portugal) (Note 7) . . . . . . . . . 9,075 64,354
Media Capital S.A. (SGPS)* (Portugal) (Note 7) . . . . . . 9,625 67,387
News Corp. - Class A . . . . . . . . . . . . . . . . . . . 5,400 82,512
Pearson plc (United Kingdom) (Note 7). . . . . . . . . . . 151,775 1,839,258
PT Multimedia S.A. (SGPS)* (Portugal) (Note 7) . . . . . . 2,050 48,493
The accompanying notes are an integral part of the financial statements.
68
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MAXIMUM TERM SERIES SHARES (NOTE 2)
- --------------------------------------------------------- ---------- -----------
CONSUMER DISCRETIONARY (continued)
MEDIA (continued)
Reed Elsevier plc - ADR (United Kingdom) (Note 7) . . . . 3,550 $ 140,154
Time Warner, Inc.*. . . . . . . . . . . . . . . . . . . . 222,900 3,746,949
VNU N.V. (Netherlands) (Note 7) . . . . . . . . . . . . . 5,997 167,947
Wolters Kluwer N.V. (Netherlands) (Note 7). . . . . . . . 4,150 73,440
------------
11,771,450
------------
MULTILINE RETAIL - 0.02%
Don Quijote Co. Ltd. (Japan) (Note 7) . . . . . . . . . . 600 36,631
------------
SPECIALTY RETAIL - 3.93%
Build-A-Bear-Workshop, Inc.*. . . . . . . . . . . . . . . 2,575 69,036
Douglas Holding AG (Germany) (Note 7) . . . . . . . . . . 4,650 156,616
Foot Locker, Inc. . . . . . . . . . . . . . . . . . . . . 2,075 55,319
KOMERI Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . 1,100 27,859
Office Depot, Inc.* . . . . . . . . . . . . . . . . . . . 77,450 1,516,471
RadioShack Corp.. . . . . . . . . . . . . . . . . . . . . 91,275 2,279,137
Staples, Inc. . . . . . . . . . . . . . . . . . . . . . . 101,437 1,934,404
------------
6,038,842
------------
TEXTILES, APPAREL & LUXURY GOODS - 0.04%
LVMH S.A. (Louis Vuitton Moet Hennessy) (France) (Note 7) 850 59,620
------------
TOTAL CONSUMER DISCRETIONARY. . . . . . . . . . . . . . . 22,898,552
------------
CONSUMER STAPLES - 11.07%
BEVERAGES - 1.16%
The Coca-Cola Co. . . . . . . . . . . . . . . . . . . . . 38,900 1,689,816
Diageo plc (United Kingdom) (Note 7). . . . . . . . . . . 2,275 33,604
Grupo Modelo S.A. de C.V. - Series C (Mexico) (Note 7). . 10,800 30,785
Scottish & Newcastle plc (United Kingdom) (Note 7). . . . 4,075 35,248
------------
1,789,453
------------
FOOD & STAPLES RETAILING - 2.28%
Carrefour S.A. (France) (Note 7). . . . . . . . . . . . . 37,925 1,830,357
Metro AG (Germany) (Note 7) . . . . . . . . . . . . . . . 700 37,072
Pathmark Stores, Inc.*. . . . . . . . . . . . . . . . . . 10,575 81,639
Tesco plc (United Kingdom) (Note 7) . . . . . . . . . . . 6,600 38,794
Wal-Mart Stores, Inc. . . . . . . . . . . . . . . . . . . 32,225 1,519,086
------------
3,506,948
------------
The accompanying notes are an integral part of the financial statements.
69
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MAXIMUM TERM SERIES SHARES (NOTE 2)
- --------------------------------------------------------------- ---------- -----------
CONSUMER STAPLES (continued)
FOOD PRODUCTS - 5.98%
Cadbury Schweppes plc (United Kingdom) (Note 7) . . . . . . . . 14,250 $ 142,772
Chiquita Brands International, Inc. . . . . . . . . . . . . . . 1,050 26,303
Groupe Danone (France) (Note 7) . . . . . . . . . . . . . . . . 400 37,272
The Hain Celestial Group, Inc.* . . . . . . . . . . . . . . . . 2,100 37,275
Lancaster Colony Corp.. . . . . . . . . . . . . . . . . . . . . 375 15,585
Nestle S.A. (Switzerland) (Note 7). . . . . . . . . . . . . . . 18,500 4,844,796
Ralcorp Holdings, Inc.. . . . . . . . . . . . . . . . . . . . . 575 22,781
Unilever plc - ADR (United Kingdom) (Note 7). . . . . . . . . . 105,807 4,058,757
------------
9,185,541
------------
HOUSEHOLD PRODUCTS - 0.22%
Henkel KgaA (Germany) (Note 7). . . . . . . . . . . . . . . . . 725 62,236
Kao Corp. (Japan) (Note 7). . . . . . . . . . . . . . . . . . . 2,000 46,265
Kimberly-Clark de Mexico S.A. de C.V. - ADR (Mexico) (Note 7) . 13,925 197,781
Reckitt Benckiser plc (United Kingdom) (Note 7) . . . . . . . . 1,175 37,963
------------
344,245
------------
PERSONAL PRODUCTS - 1.43%
Clarins S.A. (France) (Note 7). . . . . . . . . . . . . . . . . 3,232 194,461
The Estee Lauder Companies, Inc. - Class A. . . . . . . . . . . 49,850 1,914,738
Shiseido Co. Ltd. (Japan) (Note 7). . . . . . . . . . . . . . . 7,000 89,211
------------
2,198,410
------------
TOTAL CONSUMER STAPLES. . . . . . . . . . . . . . . . . . . . . 17,024,597
------------
ENERGY - 9.14%
ENERGY EQUIPMENT & SERVICES - 7.47%
Abbot Group plc (United Kingdom) (Note 7) . . . . . . . . . . . 33,125 134,017
Atwood Oceanics, Inc.*. . . . . . . . . . . . . . . . . . . . . 800 45,656
Baker Hughes, Inc.. . . . . . . . . . . . . . . . . . . . . . . 38,425 1,695,311
Compagnie Generale de Geophysique S.A. (CGG)* (France) (Note 7) 775 60,843
Cooper Cameron Corp.* . . . . . . . . . . . . . . . . . . . . . 17,225 946,341
Helmerich & Payne, Inc. . . . . . . . . . . . . . . . . . . . . 2,750 105,710
National-Oilwell Varco, Inc.* . . . . . . . . . . . . . . . . . 16,036 637,271
Pride International, Inc.*. . . . . . . . . . . . . . . . . . . 8,625 192,337
Schlumberger Ltd. . . . . . . . . . . . . . . . . . . . . . . . 57,200 3,913,052
Smedvig ASA - Class A (Norway) (Note 7) . . . . . . . . . . . . 5,500 96,053
Transocean, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 26,175 1,213,735
Weatherford International Ltd.* . . . . . . . . . . . . . . . . 46,775 2,439,316
------------
11,479,642
------------
The accompanying notes are an integral part of the financial statements.
70
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MAXIMUM TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------ ---------- -----------
ENERGY (continued)
OIL, GAS & CONSUMABLE FUELS - 1.67%
Amerada Hess Corp. . . . . . . . . . . . . . . . . . . . . . 21,550 $2,018,157
BP plc (United Kingdom) (Note 7) . . . . . . . . . . . . . . 3,450 35,158
Eni S.p.A. (Italy) (Note 7). . . . . . . . . . . . . . . . . 7,075 177,649
Forest Oil Corp.*. . . . . . . . . . . . . . . . . . . . . . 3,600 138,708
Petroleo Brasileiro S.A. (Petrobras) - ADR (Brazil) (Note 7) 2,625 96,469
Shell Transport & Trading Co. plc (United Kingdom) (Note 7). 4,400 39,424
Total S.A. (France) (Note 7) . . . . . . . . . . . . . . . . 300 66,602
------------
2,572,167
------------
TOTAL ENERGY . . . . . . . . . . . . . . . . . . . . . . . . 14,051,809
------------
FINANCIALS - 8.17%
CAPITAL MARKETS - 2.97%
The Bank of New York Co., Inc. . . . . . . . . . . . . . . . 88,900 2,483,866
Deutsche Bank AG (Germany) (Note 7). . . . . . . . . . . . . 1,750 142,680
SEI Investments Co.. . . . . . . . . . . . . . . . . . . . . 59,200 1,942,352
------------
4,568,898
------------
COMMERCIAL BANKS - 3.96%
Banca Intesa S.p.A. (Italy) (Note 7) . . . . . . . . . . . . 13,450 63,831
Banco BPI S.A. (Portugal) (Note 7) . . . . . . . . . . . . . 10,125 40,656
Banco Espirito Santo S.A. (BES) (Portugal) (Note 7). . . . . 1,775 29,926
Bayerische Hypo-und Vereinsbank AG (HVB Group)* (Germany)
(Note 7) . . . . . . . . . . . . . . . . . . . . . . . . . . 4,600 108,932
BNP Paribas S.A. (France) (Note 7) . . . . . . . . . . . . . 650 42,580
Commerzbank AG* (Germany) (Note 7) . . . . . . . . . . . . . 4,525 98,537
Metropolitan Bank & Trust Co. (Philippines) (Note 7) . . . . 145,125 84,531
PNC Financial Services Group, Inc. . . . . . . . . . . . . . 36,725 1,954,872
Societe Generale (France) (Note 7) . . . . . . . . . . . . . 300 29,691
U.S. Bancorp . . . . . . . . . . . . . . . . . . . . . . . . 60,800 1,696,320
UniCredito Italiano S.p.A. (Italy) (Note 7). . . . . . . . . 12,925 72,027
Wachovia Corp. . . . . . . . . . . . . . . . . . . . . . . . 36,425 1,864,232
------------
6,086,135
------------
CONSUMER FINANCE - 0.05%
MoneyGram International, Inc.. . . . . . . . . . . . . . . . 2,275 44,135
Takefuji Corp. (Japan) (Note 7). . . . . . . . . . . . . . . 450 28,503
------------
72,638
------------
The accompanying notes are an integral part of the financial statements.
71
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MAXIMUM TERM SERIES SHARES (NOTE 2)
- ---------------------------------------------- ---------- -----------
FINANCIALS (continued)
DIVERSIFIED FINANCIAL SERVICES - 0.97%
ING Groep N.V. (Netherlands) (Note 7). . . . . 2,575 $ 69,926
Principal Financial Group, Inc.. . . . . . . . 36,400 1,422,512
------------
1,492,438
------------
INSURANCE - 0.15%
Allianz AG (Germany) (Note 7). . . . . . . . . 325 38,586
Assicurazioni Generali S.p.A. (Italy) (Note 7) 2,275 69,655
Axa (France) (Note 7). . . . . . . . . . . . . 3,575 87,374
Muenchener Rueckver AG (Germany) (Note 7). . . 275 30,077
------------
225,692
------------
REAL ESTATE - 0.05%
SM Prime Holdings, Inc. (Philippines) (Note 7) 591,525 80,941
------------
THRIFTS & MORTGAGE FINANCE - 0.02%
Flagstar Bancorp, Inc. . . . . . . . . . . . . 1,900 36,176
------------
TOTAL FINANCIALS . . . . . . . . . . . . . . . 12,562,918
------------
HEALTH CARE - 15.14%
BIOTECHNOLOGY - 1.42%
BioMarin Pharmaceutical, Inc.* . . . . . . . . 21,000 124,530
Caliper Life Sciences, Inc.* . . . . . . . . . 12,000 69,480
Chiron Corp.*. . . . . . . . . . . . . . . . . 5,450 186,118
Diversa Corp.* . . . . . . . . . . . . . . . . 20,800 109,200
Millennium Pharmaceuticals, Inc.*. . . . . . . 177,325 1,553,367
Neurocrine Biosciences, Inc.*. . . . . . . . . 1,600 55,936
Xenogen Corp.* . . . . . . . . . . . . . . . . 18,375 81,953
------------
2,180,584
------------
HEALTH CARE EQUIPMENT & SUPPLIES - 0.45%
Advanced Neuromodulation Systems, Inc.*. . . . 5,450 164,099
Conceptus, Inc.* . . . . . . . . . . . . . . . 12,625 77,139
DENTSPLY International, Inc. . . . . . . . . . 3,350 183,111
Millipore Corp.* . . . . . . . . . . . . . . . 1,425 68,714
Thermo Electron Corp.* . . . . . . . . . . . . 3,675 91,801
Varian, Inc.*. . . . . . . . . . . . . . . . . 2,300 76,291
Viasys Healthcare, Inc.* . . . . . . . . . . . 1,950 41,418
------------
702,573
------------
HEALTH CARE PROVIDERS & SERVICES - 3.84%
Allscripts Healthcare Solutions, Inc.* . . . . 13,625 178,351
American Healthways, Inc.* . . . . . . . . . . 1,850 69,097
AmerisourceBergen Corp.. . . . . . . . . . . . 2,025 124,092
AMN Healthcare Services, Inc.* . . . . . . . . 11,075 163,578
Cross Country Healthcare, Inc.*. . . . . . . . 10,775 173,585
The accompanying notes are an integral part of the financial statements.
72
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MAXIMUM TERM SERIES SHARES (NOTE 2)
- --------------------------------------------------------------- ---------- -----------
HEALTH CARE (continued)
HEALTH CARE PROVIDERS & SERVICES (continued)
Eclipsys Corp.* . . . . . . . . . . . . . . . . . . . . . . . . 10,925 $ 147,597
Express Scripts, Inc.*. . . . . . . . . . . . . . . . . . . . . 2,075 186,003
HCA, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,200 122,848
McKesson Corp.. . . . . . . . . . . . . . . . . . . . . . . . . 4,025 148,925
Medical Staffing Network Holdings, Inc.*. . . . . . . . . . . . 4,525 25,250
Omnicell, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . 41,475 255,071
Triad Hospitals, Inc.*. . . . . . . . . . . . . . . . . . . . . 3,125 160,156
WebMD Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . . 436,200 4,143,900
------------
5,898,453
------------
PHARMACEUTICALS - 9.43%
AstraZeneca plc (United Kingdom) (Note 7) . . . . . . . . . . . 675 29,383
AstraZeneca plc - ADR (United Kingdom) (Note 7) . . . . . . . . 1,550 68,123
Bristol-Myers Squibb Co.. . . . . . . . . . . . . . . . . . . . 4,925 128,050
GlaxoSmithKline plc (United Kingdom) (Note 7) . . . . . . . . . 12,275 307,344
GlaxoSmithKline plc - ADR (United Kingdom) (Note 7) . . . . . . 54,825 2,771,404
Merck & Co., Inc. . . . . . . . . . . . . . . . . . . . . . . . 3,800 128,820
Novartis AG - ADR (Switzerland) (Note 7). . . . . . . . . . . . 73,500 3,581,655
Pfizer, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . 64,525 1,753,144
Roche Holding AG - ADR (Switzerland) (Note 7) . . . . . . . . . 1,150 69,360
Sanofi-Aventis (France) (Note 7). . . . . . . . . . . . . . . . 562 49,473
Sanofi-Aventis - ADR (France) (Note 7). . . . . . . . . . . . . 1,450 64,337
Schering AG (Germany) (Note 7). . . . . . . . . . . . . . . . . 5,525 362,645
Schering-Plough Corp. . . . . . . . . . . . . . . . . . . . . . 230,050 4,801,144
Shire Pharmaceuticals Group plc (United Kingdom) (Note 7) . . . 3,500 36,503
Takeda Pharmaceutical Co. Ltd. (Japan) (Note 7) . . . . . . . . 800 38,996
Watson Pharmaceuticals, Inc.* . . . . . . . . . . . . . . . . . 5,700 171,000
Wyeth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,950 132,573
------------
14,493,954
------------
TOTAL HEALTH CARE . . . . . . . . . . . . . . . . . . . . . . . 23,275,564
------------
INDUSTRIALS - 7.86%
AEROSPACE & DEFENSE - 0.96%
Empresa Brasileira de Aeronautica S.A. (Embraer) - ADR (Brazil)
(Note 7). . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,200 1,476,608
------------
AIRLINES - 1.17%
AirTran Holdings, Inc.* . . . . . . . . . . . . . . . . . . . . 7,650 63,495
Continental Airlines, Inc. - Class B* . . . . . . . . . . . . . 2,500 29,600
Deutsche Lufthansa AG* (Germany) (Note 7) . . . . . . . . . . . 2,850 36,680
The accompanying notes are an integral part of the financial statements.
73
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MAXIMUM TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------ --------- -----------
INDUSTRIALS (continued)
AIRLINES (continued)
JetBlue Airways Corp.* . . . . . . . . . . . . . . . . . . . 1,850 $ 37,092
Southwest Airlines Co. . . . . . . . . . . . . . . . . . . . 109,050 1,622,664
------------
1,789,531
------------
COMMERCIAL SERVICES & SUPPLIES - 1.52%
Aggreko plc (United Kingdom) (Note 7). . . . . . . . . . . . 10,225 35,563
BWT AG (Austria) (Note 7). . . . . . . . . . . . . . . . . . 1,925 60,054
The Dun & Bradstreet Corp.*. . . . . . . . . . . . . . . . . 28,425 1,774,857
Herman Miller, Inc.. . . . . . . . . . . . . . . . . . . . . 1,575 45,045
Quebecor World, Inc. (Canada) (Note 7) . . . . . . . . . . . 4,125 91,245
Tomra Systems ASA (Norway) (Note 7). . . . . . . . . . . . . 91,450 334,631
------------
2,341,395
------------
CONSTRUCTION & ENGINEERING - 0.20%
Hochtief AG (Germany) (Note 7) . . . . . . . . . . . . . . . 1,200 35,629
Infrasource Services, Inc.*. . . . . . . . . . . . . . . . . 2,925 29,396
Insituform Technologies, Inc. - Class A* . . . . . . . . . . 3,100 46,221
Koninklijke Boskalis Westminster N.V. (Netherlands) (Note 7) 5,468 199,227
------------
310,473
------------
ELECTRICAL EQUIPMENT - 1.19%
American Superconductor Corp.* . . . . . . . . . . . . . . . 36,375 318,281
Gamesa Corporacion Tecnologica S.A. (Spain) (Note 7) . . . . 107,750 1,385,357
Global Power Equipment Group, Inc.*. . . . . . . . . . . . . 5,050 45,753
Plug Power, Inc.*. . . . . . . . . . . . . . . . . . . . . . 8,200 45,510
Vestas Wind Systems A/S* (Denmark) (Note 7). . . . . . . . . 3,000 37,724
------------
1,832,625
------------
INDUSTRIAL CONGLOMERATES - 0.12%
Siemens AG (Germany) (Note 7). . . . . . . . . . . . . . . . 1,800 131,537
Sonae S.A. (SGPS) (Portugal) (Note 7). . . . . . . . . . . . 33,275 52,675
------------
184,212
------------
MACHINERY - 1.27%
AGCO Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . 94,525 1,625,830
Albany International Corp. - Class A . . . . . . . . . . . . 1,425 44,688
FANUC Ltd. (Japan) (Note 7). . . . . . . . . . . . . . . . . 500 29,572
Gardner Denver, Inc.*. . . . . . . . . . . . . . . . . . . . 1,350 49,329
Lindsay Manufacturing Co.. . . . . . . . . . . . . . . . . . 1,900 35,454
MAN AG (Germany) (Note 7). . . . . . . . . . . . . . . . . . 1,675 70,212
Wabtec Corp. . . . . . . . . . . . . . . . . . . . . . . . . 4,775 95,500
------------
1,950,585
------------
The accompanying notes are an integral part of the financial statements.
74
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MAXIMUM TERM SERIES SHARES (NOTE 2)
- ---------------------------------------------------------- ---------- -----------
INDUSTRIALS (continued)
ROAD & RAIL - 1.43%
CSX Corp.. . . . . . . . . . . . . . . . . . . . . . . . . 54,550 $2,189,091
------------
TOTAL INDUSTRIALS. . . . . . . . . . . . . . . . . . . . . 12,074,520
------------
INFORMATION TECHNOLOGY - 7.29%
COMMUNICATIONS EQUIPMENT - 2.03%
Cisco Systems, Inc.* . . . . . . . . . . . . . . . . . . . 144,900 2,503,872
Nokia Oyj - ADR (Finland) (Note 7) . . . . . . . . . . . . 20,850 333,183
Polycom, Inc.* . . . . . . . . . . . . . . . . . . . . . . 11,375 173,583
Scientific-Atlanta, Inc. . . . . . . . . . . . . . . . . . 3,250 99,385
------------
3,110,023
------------
COMPUTERS & PERIPHERALS - 0.20%
EMC Corp.* . . . . . . . . . . . . . . . . . . . . . . . . 11,975 157,112
Logitech International S.A. - ADR* (Switzerland) (Note 7). 2,650 153,568
------------
310,680
------------
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.24%
Digital Theater Systems, Inc. (DTS)* . . . . . . . . . . . 9,575 161,818
KEYENCE Corp. (Japan) (Note 7) . . . . . . . . . . . . . . 200 44,262
Mettler-Toledo International, Inc.* (Switzerland) (Note 7) 1,575 72,214
Solectron Corp.* . . . . . . . . . . . . . . . . . . . . . 28,250 93,225
------------
371,519
------------
INTERNET SOFTWARE & SERVICES - 0.12%
Blue Coat Systems, Inc.* . . . . . . . . . . . . . . . . . 8,950 128,880
Online Resources Corp.*. . . . . . . . . . . . . . . . . . 6,775 58,943
------------
187,823
------------
IT SERVICES - 1.21%
The BISYS Group, Inc.*1. . . . . . . . . . . . . . . . . . 2,525 35,653
First Data Corp. . . . . . . . . . . . . . . . . . . . . . 47,875 1,820,686
------------
1,856,339
------------
OFFICE ELECTRONICS - 0.02%
Canon, Inc. (Japan) (Note 7) . . . . . . . . . . . . . . . 600 31,365
------------
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 2.00%
ATI Technologies, Inc.* (Canada) (Note 7). . . . . . . . . 6,025 89,170
Cabot Microelectronics Corp.*. . . . . . . . . . . . . . . 6,125 176,339
Cymer, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 6,025 149,360
Exar Corp.*. . . . . . . . . . . . . . . . . . . . . . . . 9,475 120,238
Mindspeed Technologies, Inc.*. . . . . . . . . . . . . . . 20,825 28,322
Taiwan Semiconductor Manufacturing Co. Ltd. - ADR (Taiwan)
(Note 7) . . . . . . . . . . . . . . . . . . . . . . . . . 30,637 263,785
The accompanying notes are an integral part of the financial statements.
75
Investment Portfolio - April 30, 2005 (unaudited)
VALUE
PRO-BLENDR MAXIMUM TERM SERIES SHARES (NOTE 2)
- ------------------------------------------------------------- ---------- -----------
INFORMATION TECHNOLOGY (continued)
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT (continued)
Texas Instruments, Inc. . . . . . . . . . . . . . . . . . . . 82,750 $2,065,440
Zoran Corp.*. . . . . . . . . . . . . . . . . . . . . . . . . 17,500 185,150
------------
3,077,804
------------
SOFTWARE - 1.47%
Amdocs Ltd.* (Guernsey) (Note 7). . . . . . . . . . . . . . . 13,225 353,240
Blackbaud, Inc. . . . . . . . . . . . . . . . . . . . . . . . 15,150 197,708
Business Objects S.A. - ADR* (France) (Note 7). . . . . . . . 8,275 213,578
F-Secure Oyj* (Finland) (Note 7). . . . . . . . . . . . . . . 19,725 48,234
Opsware, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . 11,000 52,580
SAP AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . . 675 105,463
SAP AG - ADR (Germany) (Note 7) . . . . . . . . . . . . . . . 2,325 91,675
Secure Computing Corp.* . . . . . . . . . . . . . . . . . . . 8,125 71,906
Synopsys, Inc.* . . . . . . . . . . . . . . . . . . . . . . . 52,350 860,634
Take-Two Interactive Software, Inc.*. . . . . . . . . . . . . 1,087 5,577
THQ, Inc.*. . . . . . . . . . . . . . . . . . . . . . . . . . 1,025 25,851
Verity, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . 25,300 207,460
------------
2,253,906
------------
TOTAL INFORMATION TECHNOLOGY. . . . . . . . . . . . . . . . . 11,199,459
------------
MATERIALS - 5.00%
CHEMICALS - 4.46%
Air Liquide S.A. (France) (Note 7). . . . . . . . . . . . . . 330 58,610
Bayer AG (Germany) (Note 7) . . . . . . . . . . . . . . . . . 2,225 72,935
Engelhard Corp. . . . . . . . . . . . . . . . . . . . . . . . 93,650 2,868,499
Lanxess* (Germany) (Note 7) . . . . . . . . . . . . . . . . . 222 4,574
Lonza Group AG (Switzerland) (Note 7) . . . . . . . . . . . . 37,225 2,231,569
Minerals Technologies, Inc. . . . . . . . . . . . . . . . . . 24,750 1,616,670
------------
6,852,857
------------
PAPER & FOREST PRODUCTS - 0.54%
Aracruz Celulose S.A. - ADR (Brazil) (Note 7) . . . . . . . . 24,850 762,895
Sappi Ltd. - ADR (South Africa) (Note 7). . . . . . . . . . . 7,350 73,353
------------
836,248
------------
TOTAL MATERIALS . . . . . . . . . . . . . . . . . . . . . . . 7,689,105
------------
TELECOMMUNICATION SERVICES - 3.38%
DIVERSIFIED TELECOMMUNICATION SERVICES - 0.40%
CT Communications, Inc. . . . . . . . . . . . . . . . . . . . 16,700 191,716
D&E Communications, Inc.. . . . . . . . . . . . . . . . . . . 20,125 167,440
Deutsche Telekom AG (Germany) (Note 7). . . . . . . . . . . . 3,950 73,713
Philippine Long Distance Telephone Co. (Philippines) (Note 7) 2,025 51,673
Telecom Italia S.p.A. (Italy) (Note 7). . . . . . . . . . . . 31,550 106,283
The accompanying notes are an integral part of the financial statements.
76
Investment Portfolio - April 30, 2005 (unaudited)
SHARES/ VALUE
PRO-BLENDR MAXIMUM TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- ----------------------------------------------------------------- ----------------- ------------
TELECOMMUNICATION SERVICES (continued)
DIVERSIFIED TELECOMMUNICATION SERVICES (continued)
Telefonos de Mexico S.A. de C.V. (Telmex) - ADR (Mexico) (Note 7) 850 $ 28,815
-------------
619,640
-------------
WIRELESS TELECOMMUNICATION SERVICES - 2.98%
Globe Telecom, Inc. (Philippines) (Note 7). . . . . . . . . . . . 2,725 40,815
Maxis Communications Berhad (Malaysia) (Note 7) . . . . . . . . . 14,000 35,557
NTT DoCoMo, Inc. (Japan) (Note 7) . . . . . . . . . . . . . . . . 84 129,810
Vodafone Group plc - ADR (United Kingdom) (Note 7). . . . . . . . 167,050 4,366,687
-------------
4,572,869
-------------
TOTAL TELECOMMUNICATION SERVICES. . . . . . . . . . . . . . . . . 5,192,509
-------------
UTILITIES - 3.52%
ELECTRIC UTILITIES - 2.05%
Allegheny Energy, Inc.* . . . . . . . . . . . . . . . . . . . . . 121,150 2,960,906
E.ON AG (Germany) (Note 7). . . . . . . . . . . . . . . . . . . . 1,750 146,959
Westar Energy, Inc. . . . . . . . . . . . . . . . . . . . . . . . 1,825 41,793
-------------
3,149,658
-------------
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 1.38%
NRG Energy, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . 67,975 2,114,023
-------------
MULTI-UTILITIES - 0.09%
Aquila, Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . . 22,325 76,798
National Grid Transco plc (United Kingdom) (Note 7) . . . . . . . 3,850 37,820
Suez S.A. (France) (Note 7) . . . . . . . . . . . . . . . . . . . 1,125 30,550
-------------
145,168
-------------
TOTAL UTILITIES . . . . . . . . . . . . . . . . . . . . . . . . . 5,408,849
-------------
TOTAL COMMON STOCKS
(Identified Cost $118,786,884). . . . . . . . . . . . . . . . . . 131,377,882
-------------
U.S. TREASURY BONDS - 7.24%
U.S. Treasury Bond, 5.50%, 8/15/2028
(Identified Cost $9,975,012). . . . . . . . . . . . . . . . . . . $ 9,885,000 11,130,668
-------------
The accompanying notes are an integral part of the financial statements.
77
Investment Portfolio - April 30, 2005 (unaudited)
SHARES/ VALUE
PRO-BLENDR MAXIMUM TERM SERIES PRINCIPAL AMOUNT (NOTE 2)
- -------------------------------------------------------- ------------------ -----------
SHORT-TERM INVESTMENTS - 7.94%
Dreyfus Treasury Cash Management - Institutional Shares. 6,221,966 $6,221,966
Fannie Mae Discount Note, 6/6/2005 . . . . . . . . . . . $ 4,000,000 3,988,640
Federal Home Loan Bank Discount Note, 6/6/2005 . . . . . 2,000,000 1,994,560
-------------
TOTAL SHORT-TERM INVESTMENTS
(Identified Cost $12,205,166). . . . . . . . . . . . . . 12,205,166
-------------
TOTAL INVESTMENTS - 100.65%
(Identified Cost $140,967,062) . . . . . . . . . . . . . 154,713,716
LIABILITIES, LESS OTHER ASSETS - (0.65%) . . . . . . . . (996,853)
-------------
NET ASSETS - 100%. . . . . . . . . . . . . . . . . . . . $ 153,716,863
=============
*Non-income producing security
1A subsidiary of the company serves as the Fund's sub-accounting services and
sub-transfer agent. An employee of the company serves as an officer of the
Fund.
ADR - American Depository Receipt
The accompanying notes are an integral part of the financial statements.
78
Statement of Assets and Liabilities - Pro-BlendR Maximum Term Series (unaudited)
April 30, 2005
ASSETS:
Investments, at value (identified cost $140,967,062) (Note 2). . . . . . . . . $154,713,716
Foreign currency, at value (cost $9,638) . . . . . . . . . . . . . . . . . . . 9,616
Receivable for fund shares sold. . . . . . . . . . . . . . . . . . . . . . . . 209,393
Receivable for securities sold . . . . . . . . . . . . . . . . . . . . . . . . 132,159
Dividends receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116,943
Interest receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112,640
Foreign tax reclaims receivable. . . . . . . . . . . . . . . . . . . . . . . . 55,043
------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155,349,510
------------
LIABILITIES:
Accrued management fees (Note 3) . . . . . . . . . . . . . . . . . . . . . . . 117,435
Accrued fund accounting and transfer agent fees (Note 3) . . . . . . . . . . . 17,114
Accrued chief compliance officer services (Note 3) . . . . . . . . . . . . . . 600
Payable for securities purchased . . . . . . . . . . . . . . . . . . . . . . . 1,344,783
Payable for fund shares repurchased. . . . . . . . . . . . . . . . . . . . . . 130,261
Audit fees payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,507
Other payables and accrued expenses. . . . . . . . . . . . . . . . . . . . . . 3,947
------------
TOTAL LIABILITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,632,647
------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $153,716,863
============
NET ASSETS CONSIST OF:
Capital stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 99,044
Additional paid-in-capital . . . . . . . . . . . . . . . . . . . . . . . . . . 136,283,949
Undistributed net investment income. . . . . . . . . . . . . . . . . . . . . . 371,257
Accumulated net realized gain on investments and other assets and liabilities. 3,214,109
Net unrealized appreciation on investments and other assets and liabilities. . 13,748,504
------------
TOTAL NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $153,716,863
============
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE - CLASS A ($153,716,863/9,904,444 shares). . . . . . . . . . . $ 15.52
============
The accompanying notes are an integral part of the financial statements.
79
Statement of Operations - Pro-BlendR Maximum Term Series (unaudited)
For the Six Months Ended April 30, 2005
INVESTMENT INCOME:
Dividends (net of foreign tax withheld, $66,908) . . $1,029,603
Interest . . . . . . . . . . . . . . . . . . . . . . 321,319
-----------
Total Investment Income. . . . . . . . . . . . . . . 1,350,922
-----------
EXPENSES:
Management fees (Note 3) . . . . . . . . . . . . . . 726,842
Fund accounting and transfer agent fees (Note 3) . . 101,514
Directors' fees (Note 3) . . . . . . . . . . . . . . 3,352
Chief compliance officer services (Note 3) . . . . . 2,343
Custodian fees . . . . . . . . . . . . . . . . . . . 14,737
Miscellaneous. . . . . . . . . . . . . . . . . . . . 40,478
-----------
Total Expenses . . . . . . . . . . . . . . . . . . . 889,266
Less reduction of expenses (Note 3). . . . . . . . . (15,723)
-----------
Net Expenses . . . . . . . . . . . . . . . . . . . . 873,543
-----------
NET INVESTMENT INCOME. . . . . . . . . . . . . . . . 477,379
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) on -
Investments. . . . . . . . . . . . . . . . . . . . . 3,532,326
Foreign currency and other assets and liabilities. . (201)
-----------
3,532,125
-----------
Net change in unrealized appreciation on -
Investments. . . . . . . . . . . . . . . . . . . . . 3,843,667
Foreign currency and other assets and liabilities. . (408)
-----------
3,843,259
-----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS. . . . . . . . . . . . . . . . . . . . . 7,375,384
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS . . . . . . . . . . . . . . . . . . . . . $7,852,763
===========
The accompanying notes are an integral part of the financial statements.
80
Statements of Changes in Net Assets - Pro-BlendR Maximum Term Series (unaudited)
FOR THE SIX
MONTHS ENDED FOR THE
4/30/05 YEAR ENDED
(UNAUDITED) 10/31/04
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income. . . . . . . . . . . . . . . . . $ 477,379 $ 358,299
Net realized gain on investments . . . . . . . . . . . 3,532,125 7,804,613
Net change in unrealized appreciation on
investments. . . . . . . . . . . . . . . . . . . . . . 3,843,259 6,686,481
-------------- -------------
Net increase from operations . . . . . . . . . . . . . 7,852,763 14,849,393
-------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 8):
From net investment income . . . . . . . . . . . . . . (306,479) (247,271)
From net realized gain on investments. . . . . . . . . (3,198,199) -
-------------- -------------
Total distributions to shareholders. . . . . . . . . . (3,504,678) (247,271)
-------------- -------------
CAPITAL STOCK ISSUED AND REPURCHASED:
Net increase from capital share transactions (Note 5). 17,621,482 25,285,698
-------------- -------------
Net increase in net assets . . . . . . . . . . . . . . 21,969,567 39,887,820
NET ASSETS:
Beginning of period. . . . . . . . . . . . . . . . . . 131,747,296 91,859,476
-------------- -------------
END OF PERIOD (including undistributed net investment
income of $371,257 and $200,357, respectively) . . . . $ 153,716,863 $131,747,296
============== =============
The accompanying notes are an integral part of the financial statements.
81
Financial Highlights - Pro-BlendR Maximum Term Series (unaudited)
FOR THE SIX
MONTHS ENDED
4/30/05 FOR THE YEARS ENDED
(UNAUDITED) 10/31/04 10/31/03 10/31/02 10/31/01 10/31/00
--------------- --------------------- ---------- ---------- ---------- --------
PER SHARE DATA (FOR A SHARE OUTSTANDING
THROUGHOUT EACH PERIOD):
NET ASSET VALUE - BEGINNING OF PERIOD. . . . $ 15.00 $ 13.05 $ 10.86 $ 12.85 $ 16.45 $ 14.33
-------------- --------------------- ---------- ---------- ---------- --------
Income (loss) from investment operations:
Net investment income. . . . . . . . . . . . 0.05 0.04 0.04 0.11 0.15 0.21
Net realized and unrealized gain (loss) on
investments. . . . . . . . . . . . . . . . . 0.85 1.94 2.25 (1.36) (0.95) 3.57
-------------- --------------------- ---------- ---------- ---------- --------
Total from investment operations . . . . . . 0.90 1.98 2.29 (1.25) (0.80) 3.78
-------------- --------------------- ---------- ---------- ---------- --------
Less distributions to shareholders:
From net investment income . . . . . . . . . (0.03) (0.03) (0.10) (0.15) (0.56) (0.22)
From net realized gain on investments. . . . (0.35) - - (0.59) (2.24) (1.44)
-------------- --------------------- ---------- ---------- ---------- --------
Total distributions to shareholders. . . . . (0.38) (0.03) (0.10) (0.74) (2.80) (1.66)
-------------- --------------------- ---------- ---------- ---------- --------
NET ASSET VALUE - END OF PERIOD. . . . . . . $ 15.52 $ 15.00 $ 13.05 $ 10.86 $ 12.85 $ 16.45
============== ===================== ========== ========== ========== ========
Total return1. . . . . . . . . . . . . . . . 6.02% 15.20% 21.20% (10.68%) (6.00%) 28.35%
RATIOS (TO AVERAGE NET ASSETS)/SUPPLEMENTAL
DATA:
Expenses*. . . . . . . . . . . . . . . . . . 1.20%2 1.20% 1.20% 1.20% 1.20% 1.20%
Net investment income. . . . . . . . . . . . 0.66%2 0.31% 0.37% 0.97% 1.10% 1.26%
Portfolio turnover . . . . . . . . . . . . . 29% 68% 73% 99% 109% 84%
NET ASSETS - END OF PERIOD (000's omitted) . $ 153,717 $ 131,747 $ 91,859 $ 62,482 $ 27,928 $30,007
============== ===================== ========== ========== ========== ========
*The investment advisor did not impose all of its management fee. If these
expenses had been incurred by the Series, the expense ratio (to average net
assets) would have been increased as follows:
0.02%2 0.06% 0.09% 0.16% 0.30% 0.14%
1Represents aggregate total return for the period indicated, and assumes
reinvestment of all distributions. Total return would have been lower had
certain expenses not been waived during the period. Periods less than one year
are not annualized.
2Annualized.
The accompanying notes are an integral part of the financial statements.
82
Notes to Financial Statements (unaudited)
1. ORGANIZATION
Pro-BlendR Conservative Term Series, Pro-BlendR Moderate Term Series, Pro-BlendR
Extended Term Series and Pro-BlendR Maximum Term Series (each the "Series") are
no-load diversified series of Exeter Fund, Inc. (the "Fund"). The Fund is
organized in Maryland and is registered under the Investment Company Act of 1940
(the "1940 Act"), as amended, as an open-end management investment company.
The Series are asset allocation funds. Each invests in a combination of stocks,
bonds and cash, and is managed according to specific goals. The goals are as
follows: Pro-BlendR Conservative Term Series - primary goal is preservation of
capital; secondary goal is long-term growth of capital. Pro-BlendR Moderate Term
Series - equal emphasis on long-term growth of capital and preservation of
capital. Pro-BlendR Extended Term Series - primary goal is long-term growth of
capital; secondary goal is preservation of capital. Pro-BlendR Maximum Term
Series - long-term growth of capital.
Each Series is authorized to issue five classes of shares (Class A, B, C, D and
E). Currently, only Class A shares have been issued. Each class of shares is
substantially the same, except that class-specific distribution and shareholder
servicing expenses are borne by the specific class of shares to which they
relate.
Shares of each Series are offered to investors and employees of Manning & Napier
Advisors, Inc. (the "Advisor"), doing business as Exeter Asset Management, and
its affiliates. The total authorized capital stock of the Fund consists of 1.7
billion shares of common stock each having a par value of $0.01. As of April 30,
2005, 1.16 billion shares have been designated in total among 21 series, of
which 37.5 million each have been designated as Pro-BlendR Conservative Term
Series Class A, Pro-BlendR Moderate Term Series Class A and Pro-BlendR Extended
Term Series Class A common stock, and 75 million have been designated as
Pro-BlendR Maximum Term Series Class A common stock.
2. SIGNIFICANT ACCOUNTING POLICIES
SECURITY VALUATION
Portfolio securities, including domestic equities, foreign equities,
exchange-traded funds and options, listed on an exchange other than the NASDAQ
National Market System are valued at the latest quoted sales price of the
exchange on which the security is primarily traded. Securities not traded on
valuation date or securities not listed on an exchange are valued at the latest
quoted bid price provided by the Fund's pricing service. Securities listed on
the NASDAQ National Market System are valued in accordance with the NASDAQ
Official Closing Price.
Debt securities, including government bonds, corporate bonds and mortgage backed
securities, will normally be valued on the basis of evaluated bid prices
provided by the Fund's pricing service.
Securities for which representative valuations or prices are not available from
the Fund's pricing service may be valued at fair value. If trading or events
occurring after the close of the principal market in which securities are traded
are expected to materially affect the value of those securities, then they may
be valued at their fair value, taking this trading or these events into account.
Fair value is determined in good faith by the Advisor under procedures approved
by and under the general supervision and responsibility of the Fund's Board of
Directors.
83
Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
SECURITY VALUATION (continued)
Short-term investments that mature in sixty days or less are valued at amortized
cost, which approximates market value. Investments in open-end investment
companies are valued at their net asset value per share on valuation date, with
the exception of exchange-traded funds as noted previously.
SECURITY TRANSACTIONS, INVESTMENT INCOME AND EXPENSES
Security transactions are accounted for on trade date. Dividend income is
recorded on the ex-dividend date, except that if the ex-dividend date has
passed, certain dividends from foreign securities are recorded as soon as the
Fund is informed of the ex-dividend date. Non-cash dividends, if any, are
recorded at the fair market value of the securities received. Interest income
and expenses are recorded on an accrual basis.
Most expenses of the Fund can be attributed to a specific series. Expenses which
cannot be directly attributed are apportioned among the series in the Fund in
such a manner as deemed equitable by the Fund's Directors, taking into
consideration, among other things, the nature and type of expense.
Interest income, including amortization of premium and accretion of discounts,
is earned from settlement date and accrued daily.
The Series use the identified cost method for determining realized gain or loss
on investments for both financial statement and federal income tax reporting
purposes.
FOREIGN CURRENCY TRANSLATION
The books and records of the Series are maintained in U.S. dollars. Foreign
currencies, investments and other assets and liabilities are translated into
U.S. dollars at the current exchange rates. Purchases and sales of investment
securities and income and expenses are translated on the respective dates of
such transactions. The Series do not isolate realized and unrealized gains and
losses attributable to changes in the exchange rates from gains and losses that
arise from changes in the market value of investments. Such fluctuations are
included with net realized and unrealized gain or loss on investments. Net
realized foreign currency gains and losses represent foreign currency gains and
losses between trade date and settlement date on securities transactions, gains
and losses on disposition of foreign currencies and the difference between the
amount of income and foreign withholding taxes recorded on the books of the
Series and the amounts actually received or paid.
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT
Each Series may purchase securities on a when-issued basis or forward
commitment. These transactions involve a commitment by the Series to purchase
securities for a predetermined price with payment and delivery taking place
beyond the customary settlement period. When such purchases are outstanding,
the Series will designate liquid assets in an amount sufficient to meet the
purchase price. When purchasing a security on a delayed delivery basis, the
Series assumes the rights and risks of ownership of the security, including the
risk of price and yield fluctuations, and takes such fluctuations into account
when determining its net asset value. The Series may sell the when-issued
securities before they are delivered, which may result in a capital gain or
loss.
In connection with its ability to purchase or sell securities on a when-issued
basis, the Series may enter into forward roll transactions with respect to
mortgage-related securities. Forward
84
Notes to Financial Statements (unaudited)
2. SIGNIFICANT ACCOUNTING POLICIES (continued)
SECURITIES PURCHASED ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT (continued)
roll transactions require the sale of securities for delivery in the current
month, and a simultaneous agreement with the same counterparty to repurchase
similar (same type, coupon and maturity) securities on a specified future date.
Risks of entering into forward roll transactions include the potential inability
of the counterparty to meet the terms of the agreement; the potential of the
Series to receive inferior securities at redelivery as compared to the
securities sold to the counterparty; counterparty credit risk; and the potential
pay down speed variance between the mortgage-related pools.
RESTRICTED SECURITIES
Restricted securities are purchased in private placement transactions, are not
registered under the Securities Act of 1933, as amended, and may have
contractual restrictions on resale. Information regarding restricted securities
is included at the end of each applicable Series' Investment Portfolio.
FEDERAL TAXES
Each Series' policy is to comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies. The Series are not subject to
federal income or excise tax to the extent that each Series distributes to
shareholders each year its taxable income, including any net realized gains on
investments, in accordance with requirements of the Internal Revenue Code.
Accordingly, no provision for federal income tax or excise tax has been made in
the financial statements.
DISTRIBUTIONS OF INCOME AND GAINS
Distributions to shareholders of net investment income are made semi-annually.
Distributions of net realized gains are made annually. An additional
distribution may be necessary to avoid taxation of a Series. Distributions are
recorded on the ex-dividend date.
OTHER
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
3. TRANSACTIONS WITH AFFILIATES
The Fund has an Investment Advisory Agreement (the "Agreement") with the
Advisor, for which each Series pays a fee, computed daily and payable monthly,
at an annual rate of 0.80% for Pro-BlendR Conservative Term Series and 1.00% for
Pro-BlendR Moderate Term Series, Pro-BlendR Extended Term Series and Pro-BlendR
Maximum Term Series, of the Series' average daily net assets.
Under the Agreement, personnel of the Advisor provide the Series with advice and
assistance in the choice of investments and the execution of securities
transactions, and otherwise maintain the Series' organization. The Advisor also
provides the Fund with necessary office space and fund administration services.
The salaries of all officers of the Fund (except a percentage of the Fund's
Chief Compliance Officer's salary, which is paid by the Fund, and the Special
Assistant Secretary's salary, which is paid by BISYS), and of all Directors who
are
85
Notes to Financial Statements (unaudited)
3. TRANSACTIONS WITH AFFILIATES (continued)
"affiliated persons" of the Fund, or of the Advisor, and all personnel of the
Fund, or of the Advisor, performing services relating to research, statistical
and investment activities, are paid by the Advisor. Each "non-affiliated"
Director receives an annual stipend, which is allocated among all the active
series of the Fund. In addition, these Directors also receive a per meeting fee
for each active series of the Fund plus a fee for each committee meeting
attended.
The Advisor has contractually agreed, until at least February 28, 2006, to waive
its fee and, if necessary, pay other operating expenses of the Series in order
to maintain total expenses for the Series at no more than 1.00% for Pro-BlendR
Conservative Term Series and 1.20% for Pro-BlendR Moderate Term Series,
Pro-BlendR Extended Term Series and Pro-BlendR Maximum Term Series, of average
daily net assets each year. In addition to its contractual agreement to limit
expenses for the Pro-BlendR Extended Term Series to 1.20%, the Advisor has
voluntarily agreed to waive fees and reimburse expenses during the current
fiscal year in order to keep total operating expenses from exceeding 1.17% of
the Series' average daily net assets. The Advisor may change or eliminate all
or part of its voluntary waiver at any time. Accordingly, the Advisor waived
fees of $33,469 for Pro-BlendR Conservative Term Series, $21,108 for Pro-BlendR
Moderate Term Series, $23,040 for Pro-BlendR Extended Term Series and $15,723
for Pro-BlendR Maximum Term Series, for the six months ended April 30, 2005,
which is reflected as a reduction of expenses on the Statement of Operations.
Manning & Napier Investor Services, Inc., a registered broker-dealer affiliate
of the Advisor, acts as distributor for the Fund's shares. The services of
Manning & Napier Investor Services, Inc. are provided at no additional cost to
the Series.
Effective November 1, 2003, the Master Services Agreement between the Fund and
the Advisor, which covers fund accounting services and transfer agent services,
was amended. Under the amended agreement, for providing these services, the
Fund pays the Advisor an annual fee of 0.15% of the Fund's average daily net
assets up to $900 million, 0.11% for the Fund's average daily net assets between
$900 million and $1.5 billion, and 0.07% for the Fund's average daily net assets
over $1.5 billion. These fee rates are scheduled to be reduced each year
through 2007. Additionally, certain transaction and account-based fees and
out-of-pocket expenses, including charges for reporting relating to the Fund's
Compliance Program, are charged. Expenses not directly attributable to a series
are allocated based on each series' relative net assets or number of accounts,
depending on the expense. The Advisor has an agreement with BISYS Fund Services
Ohio, Inc. ("BISYS") under which BISYS serves as sub-accounting services and
sub-transfer agent.
86
Notes to Financial Statements (unaudited)
4. PURCHASES AND SALES OF SECURITIES
For the six months ended April 30, 2005, purchases and sales of securities,
other than short-term securities, were as follows:
PURCHASES SALES
------------------------ ------------------------
Other Other
Series Issuers Government Issuers Government
- ----------------------------------- ----------- ----------- ----------- -----------
Pro-BlendR Conservative Term Series $ 2,546,100 $ 5,635,104 $ 1,638,150 $ 5,851,208
Pro-BlendR Moderate Term Series . . 19,307,755 12,941,076 12,563,039 12,397,028
Pro-BlendR Extended Term Series . . 52,039,785 53,202,752 37,055,207 34,275,846
Pro-BlendR Maximum Term Series. . . 42,496,036 4,409,297 36,059,858 4,384,688
An employee of The BISYS Group, Inc. serves as an officer of the Fund.
Therefore, The BISYS Group, Inc. is considered an "affiliated company", as
defined in the 1940 Act. There were no purchases, sales, or income transactions
in shares of The BISYS Group, Inc. for the six months ended April 30, 2005.
5. CAPITAL STOCK TRANSACTIONS
Transactions in Class A Shares:
FOR THE SIX MONTHS FOR THE YEAR
ENDED 4/30/05 ENDED 10/31/04
------------------------------------- --------------------------
Shares Amount Shares Amount
------------------- ---------------- ----------- -------------
Pro-BlendR Conservative Term Series:
Sold . . . . . . . . . . . . . . . . 929,025 $ 10,760,055 1,705,424 $ 19,331,738
Reinvested . . . . . . . . . . . . . 48,121 557,726 71,403 792,622
Repurchased. . . . . . . . . . . . . (581,456) (6,729,290) (1,215,782) (13,786,516)
------------------- ---------------- ----------- -------------
Total. . . . . . . . . . . . . . . . 395,690 $ 4,588,491 561,045 $ 6,337,844
=================== ================ =========== =============
Pro-BlendR Moderate Term Series:
Sold . . . . . . . . . . . . . . . . 2,416,774 $ 29,245,959 4,571,787 $ 52,889,095
Reinvested . . . . . . . . . . . . . 203,523 2,462,624 121,039 1,353,981
Repurchased. . . . . . . . . . . . . (1,204,052) (14,517,534) (2,854,389) (33,000,110)
------------------- ---------------- ----------- -------------
Total. . . . . . . . . . . . . . . . 1,416,245 $ 17,191,049 1,838,437 $ 21,242,966
=================== ================ =========== =============
Pro-BlendR Extended Term Series:
Sold . . . . . . . . . . . . . . . . 3,174,030 $ 47,265,824 7,023,464 $ 98,091,263
Reinvested . . . . . . . . . . . . . 555,961 8,278,255 232,865 3,147,963
Repurchased. . . . . . . . . . . . . (1,774,057) (26,361,565) (4,090,556) (56,627,007)
------------------- ---------------- ----------- -------------
Total. . . . . . . . . . . . . . . . 1,955,934 $ 29,182,514 3,165,773 $ 44,612,219
=================== ================ =========== =============
87
Notes to Financial Statements (unaudited)
5. CAPITAL STOCK TRANSACTIONS (continued)
Transactions in Class A Shares:
FOR THE SIX MONTHS FOR THE YEAR
ENDED 4/30/05 ENDED 10/31/04
------------------------------------- --------------------------
Shares Amount Shares Amount
------------------- ---------------- ----------- -------------
Pro-BlendR Maximum Term Series:
Sold. . . . . . . . . . . . . . 1,864,116 $ 29,225,469 3,807,625 $ 55,167,460
Reinvested. . . . . . . . . . . 222,480 3,501,829 17,485 247,095
Repurchased . . . . . . . . . . (965,342) (15,105,816) (2,082,013) (30,128,857)
------------------- ---------------- ----------- -------------
Total . . . . . . . . . . . . . 1,121,254 $ 17,621,482 1,743,097 $ 25,285,698
=================== ================ =========== =============
The Advisor owned 27,536 shares of Pro-BlendR Conservative Term Series (1.0% of
shares outstanding) valued at $320,244 and 22,274 shares of Pro-BlendR Maximum
Term Series (0.2% of shares outstanding) valued at $345,692 on April 30, 2005.
6. FINANCIAL INSTRUMENTS
The Series may trade in financial instruments with off-balance sheet risk in the
normal course of their investing activities to assist in managing exposure to
various market risks. These financial instruments include written options,
forward foreign currency exchange contracts and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statement purposes. No such investments were held by
the Series on April 30, 2005.
7. FOREIGN SECURITIES
Investing in securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with investing in
securities of domestic companies and the United States Government. These risks
include revaluation of currencies and future adverse political and economic
developments. Moreover, securities of foreign companies and foreign governments
and their markets may be less liquid and their prices more volatile than those
of comparable domestic companies and the United States Government.
8. FEDERAL INCOME TAX INFORMATION
The amount and characterization of certain income and capital gains to be
distributed are determined in accordance with federal income tax regulations,
which may differ from accounting principles generally accepted in the United
States of America. Each Series may periodically make reclassifications among
its capital accounts to reflect income and gains available for distribution (or
available capital loss carryovers) under income tax regulations, without
impacting the Series' net asset value. Any such reclassifications are not
reflected in the financial highlights.
88
Notes to Financial Statements (unaudited)
8. FEDERAL INCOME TAX INFORMATION (continued)
The final determination of the tax character of current year distributions will
be made at the conclusion of the fiscal year. The tax character of
distributions paid for the year ended October 31, 2004 were as follows:
Pro-BlendR Pro-BlendR Pro-BlendR Pro-BlendR
Conservative Moderate Extended Maximum
Term Series Term Series Term Series Term Series
------------- ------------ ------------ ------------
Ordinary income . . . . $ 639,645 $ 1,359,701 $ 3,160,960 $ 247,271
Long-term capital gains 154,977 - - -
At April 30, 2005, the identified cost of investments for federal income tax
purposes, the resulting gross unrealized appreciation and depreciation, and the
net unrealized appreciation were as follows:
PRO-BLENDR PRO-BLENDR PRO-BLENDR PRO-BLENDR
CONSERVATIVE MODERATE EXTENDED MAXIMUM
TERM SERIES TERM SERIES TERM SERIES TERM SERIES
-------------- ------------- ------------- --------------
Cost for federal income tax purposes $ 30,394,076 $115,535,177 $316,708,506 $ 141,279,436
Unrealized appreciation. . . . . . . $ 1,329,323 $ 7,569,173 $ 30,256,747 $ 16,572,821
Unrealized depreciation. . . . . . . (227,815) (1,224,596) (4,575,749) (3,138,541)
-------------- ------------- ------------- --------------
Net unrealized appreciation. . . . . $ 1,101,508 $ 6,344,577 $ 25,680,998 $ 13,434,280
============== ============= ============= ==============
89
Literature Requests (unaudited)
PROXY VOTING POLICIES AND PROCEDURES
- --------------------------------------------------------------------------------
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities is available, without charge,
upon request:
By phone 1-800-466-3863
On the Securities and Exchange
Commission's (SEC) web site http://www.sec.gov
PROXY VOTING RECORD
- --------------------------------------------------------------------------------
Information regarding how the Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30th is available,
without charge, upon request:
By phone 1-800-466-3863
On the SEC's web site http://www.sec.gov
QUARTERLY PORTFOLIO HOLDINGS
- --------------------------------------------------------------------------------
The Series' complete schedule of portfolio holdings for the 1st and 3rd quarters
of each fiscal year are provided on Form N-Q, and is available, without charge,
upon request:
By phone 1-800-466-3863
On the SEC's web site http:\\www.sec.gov
The Series' Form N-Q may be reviewed and copied at the SEC's Public Reference
Room in Washington, D.C. Information on the operation of the Public Reference
Room may be obtained by calling 1-800-SEC-0330.
PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION (SAI)
- --------------------------------------------------------------------------------
The prospectus and SAI provide additional information about each Series,
including charges, expenses and risks. These documents are available, without
charge, upon request:
By phone 1-800-466-3863
On the SEC's web site http://www.sec.gov
On the Advisor's web site
http://www.manningnapieradvisors.com/www/exeter_fund.asp
ADDITIONAL INFORMATION AVAILABLE AT
WWW.MANNINGNAPIERADVISORS.COM/WWW/EXETER_FUND.ASP
- --------------------------------------------------------------------------------
1. Fund Holdings - month-end
2. Fund Holdings - quarter-end
3. Shareholder Report - Annual
4. Shareholder Report - Semi-Annual
90
ITEM 2: CODE OF ETHICS
Not applicable for Semi-Annual reports.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT
Not applicable for Semi-Annual reports.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable for Semi-Annual reports.
ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS
Not Applicable.
ITEM 6: SCHEDULE OF INVESTMENTS
See Investment Portfolios under Item 1 on this Form N-CSR.
ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR
CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8: PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedure by which shareholders may
recommend nominees to the registrant's board of directors.
ITEM 11: CONTROLS AND PROCEDURES
(a) Based on their evaluation of the Funds' disclosure controls and procedures,
as of a date within 90 days of the filing date, the Funds' Principal Executive
Officer and Principal Financial Officer have concluded that the Funds'
disclosure controls and procedures are: (i) reasonably designed to ensure that
information required to be disclosed in this report is appropriately
communicated to the Funds' officers to allow timely decisions regarding
disclosures required in this report; (ii) reasonably designed to ensure that
information required to be disclosed in this report is recorded, processed,
summarized and reported in a timely manner; and (iii) are effective in achieving
the goals described in (i) and (ii) above.
(b) During the second fiscal quarter of the period covered by this report,
there have been no changes in the Funds' internal control over financial
reporting that the above officers believe to have materially affected, or to be
reasonably likely to materially affect, the Funds' internal control over
financial reporting.
ITEM 12: EXHIBITS
(a)(1) Not applicable for Semi-Annual Reports.
(a)(2) Separate certifications for the Registrant's principal executive
officer and principal financial officer, as required by Section 302 of the
Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company
Act of 1940, are attached as Ex-99.CERT.
(a)(3) Not applicable.
(b) A certification of the Registrant's principal executive officer and
principal financial officer, as required by 18 U.S.C Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and
Rule 30a-2(b) under the Investment Company Act of 1940, is attached as
Ex-99.906CERT. The certification furnished pursuant to this paragraph is
not deemed to be "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, or otherwise subject to the liability of that section.
Such certification is not deemed to be incorporated by reference into any
filing under the Securities Act of 1933 or the Securities Exchange Act of 1934,
except to the extent that the Registrant specifically incorporates them by
reference.
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.
Exeter Fund, Inc.
/s/ B. Reuben Auspitz
B. Reuben Auspitz
President & Principal Executive Officer of Exeter Fund, Inc.
June 29, 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.
/s/ B. Reuben Auspitz
B. Reuben Auspitz
President & Principal Executive Officer of Exeter Fund, Inc.
June 29, 2005
/s/ Christine Glavin
Christine Glavin
Chief Financial Officer & Principal Financial Officer of Exeter Fund, Inc.
June 29, 2005