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 811-21475
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Tamarack Funds Trust
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(Exact name of registrant as specified in charter)
100 S. Fifth Street, Suite 2300, Minneapolis, MN 55402-1240
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(Address of principal executive offices) (Zip code)
Bisys Fund Services Ohio, Inc., 3435 Stelzer Road, Columbus, OH 43219
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(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 422-2766
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Date of fiscal year end: 09/30
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Date of reporting period: 03/31/06
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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. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Include a copy of the report transmitted to stockholders pursuant to
Rule 30e-1 under the Act (17 CFR 270.30e-1).
TAMARACK FUNDS
Semi-Annual Report March 31, 2006
[PHOTO]
LARGE CAP GROWTH FUND
MID CAP GROWTH FUND
SMALL CAP GROWTH FUND
ENTERPRISE FUND
ENTERPRISE SMALL CAP FUND
VALUE FUND
MICROCAP VALUE FUND
[LOGO] TAMARACK FUNDS
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Tamarack Funds
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ABOUT YOUR SEMI-ANNUAL REPORT
This semi-annual report includes detailed information regarding your Fund's
performance. This report is provided to help answer your questions as a
shareholder. Among these questions may be: How has my Fund performed against
its benchmark both in the last year and over the last ten years (or since
inception if less than ten years)? What are the annual expenses of my Fund?
What are the significant accounting policies and procedures followed by my
Fund?
The Tamarack Funds compare their performance against various Russell Equity
indices. Each of these indices is a widely recognized measure of return for the
underlying category of securities. However, the indices are unmanaged, do not
include fees, and cannot be invested in directly.
We hope the financial information presented, as well as the discussion and
analysis from your portfolio manager(s), will help you evaluate your investment
in the Tamarack Funds. We also encourage you to read your Fund's prospectus for
further detail as to your Fund's investment policies and risk profile. Tamarack
Funds prospectuses and performance information subsequent to the date of this
report are available on our website at www.tamarackfunds.com.
A description of the policies and procedures that your Fund uses to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 1-800-422-2766; (ii) on the Fund's website at
www.tamarackfunds.com; and (iii) on the Securities and Exchange Commission's
(the "Commission") website at http://www.sec.gov.
Information regarding how your Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
(i) on the Fund's website at www.tamarackfunds.com; and (ii) on the
Commission's website at http://www.sec.gov.
A schedule of each Fund's portfolio holdings will be filed with the Commission
for the first and third quarters of each fiscal year on Form N-Q. This
information is available on the Commission's website at http://www.sec.gov and
may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference Room is
available by calling 1-800-SEC-0330.
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TABLE OF CONTENTS
Letter from the CIO of Equities .......................................... 1
Equity Portfolio Managers ................................................ 3
Performance Summary ...................................................... 7
Large Cap Growth Fund
- - Management Discussion and Analysis ..................................... 10
Mid Cap Growth Fund
- - Management Discussion and Analysis ..................................... 12
Small Cap Growth Fund
- - Management Discussion and Analysis ..................................... 14
Enterprise Fund
- - Management Discussion and Analysis ..................................... 16
Enterprise Small Cap Fund
- - Management Discussion and Analysis ..................................... 18
Value Fund
- - Management Discussion and Analysis ..................................... 20
Microcap Value Fund
- - Management Discussion and Analysis ..................................... 22
Financial Statements
- - Statements of Assets and Liabilities ................................... 24
- - Statements of Operations ............................................... 28
- - Statements of Changes in Net Assets .................................... 30
Financial Highlights ..................................................... 37
Notes to Financial Statements ............................................ 44
Schedules of Portfolio Investments ....................................... 59
Notes to Schedules of Portfolio Investments .............................. 74
Management ............................................................... 76
Share Class Information .................................................. 79
Supplemental Information ................................................. 80
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LETTER FROM THE CIO OF EQUITIES
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The equity markets are off to a roaring start in 2006. If the first quarter of
2006 is any indication, however, investors can expect a bumpy ride with headline
economic news and earnings reports causing returns to swing widely. Investors
poured $32 billion of new money into mutual funds in January (very close to the
18-month high in December 2005) only to be disappointed by reports of continuing
weakness in housing, rising energy prices and a weak fourth quarter GDP. After a
brief pause in early February, however, the markets regained their momentum. The
warmest January in over 100 years brought consumers out in force, inflation
pressures appeared contained and the prospect of increased capital expenditures
seemed promising on the heels of another quarter of double-digit corporate
earnings growth. The latest surge in economic evidence finally convinced
investors that the U.S. economy is clearly robust and drove stocks up and out of
their trading range with authority. The broad market S&P 500 posted its best
first quarter performance since 1999, rising 4.2% during the first quarter of
2006 (2005 annual performance was 4.9%) and 11.7% for the twelve month period
ended March 31, 2006.
Beneath the surface, the crosscurrents of capitalization and style played out.
Using the Russell indices, small cap stocks rose a decisive 13.9% per the
Russell 2000, in the first quarter of 2006 to lead both the mid cap stocks
(7.6%), per the Mid Cap Growth Index, and large cap stocks (4.5%), per the
Russell 1000. The Growth versus Value battle was mixed in the first quarter of
2006. Value stocks clearly dominated the large cap space, with the Russell 1000
Value out-performing the Russell 1000 Growth by 280 basis points (5.9% vs.
3.1%). Over the past twelve month period ending March 31, 2006, however, the
Russell 1000 Value had only a slight 20 basis point edge over the Russell 1000
Growth (13.3% vs. 13.1%). In the mid cap space, the Growth and Value indices
finished even at 7.6% for the first quarter of 2006, but Growth surged over the
12 month period ended March 31, 2006 and now leads Value by 240 basis points
(22.7% vs. 20.3% for the Russell Mid Cap Growth and Mid Cap Value indices). In
the small cap space, Growth beat Value by almost 90 basis points (14.4% for the
Russell 2000 Growth vs. 13.5% for the Russell 2000 Value) during the first
quarter of 2006 and now leads Value by roughly 400 basis points over the past 12
months (27.8% vs. 23.8%) for these same indices.
For the balance of 2006, we expect the economy to slow from the consensus first
quarter peak of plus 4% to a more sustainable growth rate of around 3%. In the
first quarter, the Federal Reserve raised rates for the 14th and 15th
consecutive times but hinted that the end of the tightening cycle may be near.
Core inflation, even with the pressures of high energy prices, low unemployment
and increasing capacity utilization seems to be under control. Slowdowns in
consumer spending and the housing market should be offset by increased business
spending amidst an amazing profit cycle. Fourth quarter 2005 corporate profits
grew 16.1% over the same period in 2004. We believe corporate earnings will
decline from that pace, but remain strong in 2006 with consensus estimates of
9.2% for the first quarter. This slowing of economic growth, corporate earnings
and uncertainty over future rate increases sets the stage for equity market
volatility as investors question the strength of the underlying market.
We believe the equity markets should gradually work higher, however, with
neither boom nor bust in the foreseeable future. Modest sustainable economic
growth
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LETTER FROM THE CIO OF EQUITIES
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accompanied by low core inflation typically favors stocks. Equity prices have
also not kept pace with the past three years of double-digit earnings growth.
On a relative valuation basis versus long-term Treasuries, the S&P 500
price-earnings multiple (based on forward twelve month earnings forecasts) is
now 30% below its long term average.
Stock selection will likely be as important to investment returns this year as
it was in 2005. Rather than a narrow market dominated by energy holdings,
returns should be more broad-based and more dependent on company fundamentals.
High quality stocks are poised to out-perform in any future rally based on
earnings growth prospects, valuations, liquidity, restructuring potential, and
free cash flow. Risk control, along with stock selection, is an essential
element of successful investing, especially in volatile markets. The Tamarack
Funds are well suited for this environment. At the Tamarack Funds, we use a
solid, consistent investment process that favors higher quality companies
across both the growth and value spectrums. Stock selection based on
fundamental research and strict risk controls form the center of our investment
process. As always, we believe that maintaining a diversified portfolio with a
long-term view is the best policy for our shareholders to not only protect
themselves, but to also capitalize on market uncertainty.
/s/ Nancy M. Scinto
Nancy M. Scinto
Tamarack Funds Chief Investment Officer
Equity Products
[PHOTO]
Nancy Scinto
Chief Investment Officer,
Equity Products
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EQUITY PORTFOLIO MANAGERS
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Voyageur Asset Management, Inc. ("Voyageur"), the investment advisor to the
Tamarack Funds, employs a team approach to the management of Large Cap Growth,
Mid Cap Growth, Small Cap Growth, Value and Microcap Value Funds, with no
individual team member being solely responsible for investment decisions.
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NANCY M. SCINTO
TAMARACK FUNDS CHIEF INVESTMENT OFFICER, EQUITY PRODUCTS.
MANAGING DIRECTOR, DIRECTOR OF RESEARCH, SENIOR PORTFOLIO MANAGER.
Nancy Scinto joined Voyageur in 1999 from Chicago Trust Company where she
managed institutional accounts and was co-manager of the five-star
Alleghany/Chicago Growth and Income Fund. She began her career in the investment
industry in 1984 and has held various positions including personal trust, equity
trader, senior equity analyst and senior portfolio manager. Nancy leads the
Voyageur growth equity research efforts as Director of Research. She is also the
Chief Investment Officer, Equity Products for the Tamarack Funds. Nancy holds a
BA from Governors State University and an MBA from DePaul University. She is
also a member of the Investment Analysts Society of Chicago.
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DAVID J. COX, CFA
MANAGING DIRECTOR, DIRECTOR OF EQUITY INVESTMENTS, SENIOR PORTFOLIO MANAGER.
David Cox joined Voyageur from Chicago Trust Company in 1999 along with the
other members of the firm's growth equity team. Prior to joining Voyageur, David
was the Director of Equity Research and a portfolio manager at Chicago Trust and
previously served that firm as a senior equity analyst. He also co-managed the
Alleghany/Chicago Trust Balanced Fund, which held a Morningstar five-star rating
in the Domestic Hybrid category. Prior to his experience at Voyageur and Chicago
Trust, David held analyst positions at Driehaus Securities and at Kirr, Marbach
& Company. David started in the investment industry in 1984 and holds a BS from
the University of Illinois, an MBA from Indiana University, and is a CFA
charterholder. David is a member of the Investment Analysts Society of Chicago
and the Association for Investment Management and Research.
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STEVEN A. RUSNAK, CFA
VICE PRESIDENT, SENIOR PORTFOLIO MANAGER.
Steven Rusnak joined Voyageur from Chicago Trust Company in 1999. He provides
the Voyageur growth equity team with his skills in fundamental equity research.
Prior to joining Chicago Trust, where he was a senior equity analyst and
portfolio manager, Steve was a senior equity analyst at Mesirow Financial.
Additionally, he was an analyst for the State Teachers Retirement System of Ohio
and a portfolio analyst at Feldman Securities Corporation. He earned BA and MBA
degrees from the University of Michigan and is a CFA charterholder. Steve has
been in the investment industry since 1985 and is a member of the Investment
Analysts Society of Chicago and the Association for Investment Management and
Research.
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KENNETH A. TYSZKO, CPA, CFA
VICE PRESIDENT, SENIOR PORTFOLIO MANAGER.
Kenneth Tyszko began his career in the investment industry in 1984 and has been
a portfolio manager for the small cap growth equity product since its inception
in 1995. Prior to joining Voyageur, Ken managed the small cap core growth equity
product while at Oberweis Asset Management, Inc. From 1996 to 1999 Ken actively
managed a small
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EQUITY PORTFOLIO MANAGERS
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cap growth mutual fund and separate small cap growth accounts for ABN AMRO
Asset Management (USA), Inc. and ABN AMRO Incorporated. Prior to joining ABN
AMRO, Ken actively managed portfolios of small-and mid-sized capitalization
growth stocks for Sears Investment Management Co. (SIMCO). Ken has a BS in
Accountancy from the University of Illinois and is both a CFA charterholder and
a Certified Public Accountant. He is a member of the Illinois CPA Society, the
Investment Analysts Society of Chicago and the Association for Investment
Management and Research. Ken has been a guest on Bloomberg TV and WebFN.
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FORBES L. WATSON
VICE PRESIDENT, PORTFOLIO MANAGER.
Forbes Watson serves as a portfolio manager for Voyageur's small cap growth
equity strategy. He joined Voyageur in January 2003 and began his career in the
investment industry in 1981. Forbes graduated from the University of North
Texas with a BA in finance and received his MBA from Millsaps College. He began
his career with May, Cullum, Ragland & Brittain, Inc., a Dallas-based
investment boutique, and also worked in the Dallas NASDAQ trading office of
Shearson/Lehman Brothers. Forbes held portfolio management positions with
Jackson, Mississippi-based Trustmark National Bank and ParkSouth Corporation, a
registered investment advisor, before joining RBC Centura Bank in 1988 as a
senior equity portfolio manager. He is a Level III candidate in the Chartered
Financial Analyst program and a member of both the North Carolina Society for
Financial Analysts and the Association for Investment Management and Research.
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MICHAEL T. LEE, CFA
PRESIDENT, CHIEF INVESTMENT OFFICER, SENIOR PORTFOLIO MANAGER.
Michael Lee joined Voyageur in 1993 starting as an equity analyst. As President
and Chief Investment Officer, Mike is responsible for Voyageur's investment
activities. He is also a Senior Equity Portfolio Manager and serves as a
chairman of the Large Cap Core investment committee. His prior professional
experience includes eight years with Northwest Airlines where he led several
strategic systems development projects. Mike serves on the board of the
Minnesota Children's Museum and is an advisor for the Carlson School Funds
Enterprise. He has been in the investment management business since 1990 and
earned a BS from DePauw University and an MBA in Finance from the University of
Minnesota. Mike is a CFA charterholder.
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Voyageur Asset Management employs, at its own expense, Babson Capital
Management LLC as sub-advisor to provide day-to-day portfolio management for
the Enterprise and Enterprise Small Cap Funds.
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ENTERPRISE FUND AND ENTERPRISE SMALL CAP FUND
LANCE F. JAMES
MANAGING DIRECTOR, PORTFOLIO MANAGER.
Lance James is co-portfolio manager of Enterprise Fund and portfolio manager of
Enterprise Small Cap Fund. Lance began his career in the investment industry in
1980. Prior to joining Babson Capital in 1986, he spent time at Rockwell
International Corporation, EBF Associates of Boston and later at Hewitt
Associates. Lance holds an AB from Princeton University and an MBA from the
Wharton School at the University of Pennsylvania.
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EQUITY PORTFOLIO MANAGERS
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RENIE K. HEEBNER, CFA
MANAGING DIRECTOR, PORTFOLIO MANAGER.
Renie Heebner is co-portfolio manager for Enterprise Fund and is also an equity
analyst specializing in microcap stocks. Renie began her career in the
investment industry in 1982. Prior to joining Babson Capital in 1987, she
served in the investment department of New England Mutual Life Insurance
Company. She holds a BA from Middlebury College and is a CFA charterholder.
Renie is also a member of the Boston Security Analysts Society.
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6
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PERFORMANCE SUMMARY
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Total Returns as of March 31, 2006
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TAMARACK LARGE CAP GROWTH FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (a)
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Class A (g)
- Including Maximum Sales Charge of
5.75% 3.49% 10.84% -0.93% 4.45% 7.47%
- At Net Asset Value 9.85% 13.07% 0.26% 5.07% 7.88%
Class C (h)
- Including Contingent Deferred Sales
Charge of 1.00% 8.04% 12.23% -0.49% 4.29% 7.08%
- At Net Asset Value 9.04% 12.23% -0.49% 4.29% 7.08%
Class I (g) 10.11% 13.32% 0.49% 5.33% 8.24%
Class R (h) 9.59% 12.79% 0.01% 4.81% 7.61%
Class S (i) 10.11% 13.32% 0.49% 5.33% 8.24%
Russell 1000 Growth Index* 13.14% 14.80% 1.66% 6.50% 9.95%
S&P 500(R) Index* 11.72% 17.21% 3.97% 8.95% 11.62%
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TAMARACK MID CAP GROWTH FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (a)
------ ------ ------ ------- -------------
Class A (g)
- Including Maximum Sales Charge of
5.75% 18.47% 19.13% 8.59% 11.68% 13.74%
- At Net Asset Value 25.68% 21.52% 9.89% 12.34% 14.19%
Class C (h)
- Including Contingent Deferred Sales
Charge of 1.00% 23.77% 20.64% 9.09% 11.51% 13.34%
- At Net Asset Value 24.77% 20.64% 9.09% 11.51% 13.34%
Class I (g) 26.02% 21.84% 10.16% 12.66% 14.54%
Class R (h) 25.39% 21.22% 9.62% 12.06% 13.91%
Class S (i) 26.11% 21.87% 10.18% 12.67% 14.55%
Russell Midcap Growth Index* 22.68% 25.75% 8.99% 9.39% 12.57%
S&P Midcap 400 Index* 21.62% 26.04% 12.75% 14.51% 16.26%
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TAMARACK SMALL CAP GROWTH FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (b)
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Class A (g)
- Including Maximum Sales Charge of
5.75% 13.81% 21.78% 10.14% 11.17% 12.38%
- At Net Asset Value 20.73% 24.22% 11.45% 11.83% 12.96%
Class C (h)
- Including Contingent Deferred Sales
Charge of 1.00% 18.92% 23.26% 10.60% 10.99% 12.12%
- At Net Asset Value 19.80% 23.26% 10.60% 10.99% 12.12%
Class I (g) 21.00% 24.53% 11.71% 12.11% 13.28%
Class R (h) 20.59% 23.89% 11.16% 11.54% 12.68%
Class S (i) 21.02% 24.51% 11.70% 12.11% 13.27%
Russell 2000 Growth Index* 27.84% 28.14% 8.59% 5.51% 7.97%
Russell 2000 Index* 25.85% 29.53% 12.59% 10.15% 11.92%
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PERFORMANCE SUMMARY
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TAMARACK ENTERPRISE FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (c)
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Class A (j)
- Including Maximum Sales Charge of
5.75% 15.23% 24.88% 17.95% 12.56% 12.80%
- At Net Asset Value 22.25% 27.37% 19.36% 13.23% 13.10%
Class C (j)
- Including Contingent Deferred Sales
Charge of 1.00% 20.35% 26.44% 18.48% 12.39% 12.26%
- At Net Asset Value 21.35% 26.44% 18.48% 12.39% 12.26%
Class I (k) 22.57% 27.71% 19.67% 13.52% 13.38%
Class R (j) 21.93% 27.05% 19.06% 12.95% 12.82%
Class S 22.57% 27.71% 19.67% 13.52% 13.38%
Russell 2000 Value Index * 23.77% 30.75% 16.24% 14.03% 13.36%
Russell 2000 Index * 25.85% 29.53% 12.59% 10.15% 10.67%
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TAMARACK ENTERPRISE SMALL CAP FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (d)
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Class A (j)
- Including Maximum Sales Charge of
5.75% 14.14% 24.90% 12.12% 11.54% 12.29%
- At Net Asset Value 21.12% 27.39% 13.45% 12.20% 12.74%
Class C (j)
- Including Contingent Deferred Sales
Charge of 1.00% 19.23% 26.43% 12.60% 11.36% 11.90%
- At Net Asset Value 20.23% 26.43% 12.60% 11.36% 11.90%
Class R (j) 20.79% 27.04% 13.15% 11.91% 12.45%
Class S 21.39% 27.69% 13.72% 12.47% 13.02%
Russell 2000 Index * 25.85% 29.53% 12.59% 10.15% 12.21%
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TAMARACK VALUE FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (b)
------ ------ ------ ------- -------------
Class A (j)
- Including Maximum Sales Charge of
5.75% -0.98% 15.11% 3.92% 7.00% 11.49%
- At Net Asset Value 5.06% 17.41% 5.16% 7.64% 11.79%
Class C (j)
- Including Contingent Deferred Sales
Charge of 1.00% 3.39% 16.52% 4.37% 6.83% 10.96%
- At Net Asset Value 4.27% 16.52% 4.37% 6.83% 10.96%
Class R (j) 4.81% 17.10% 4.89% 7.37% 11.51%
Class S 5.35% 17.70% 5.42% 7.90% 12.07%
Russell 1000 Value Index * 13.31% 21.77% 7.79% 10.97% 13.64%
S&P 500(R) Index * 11.72% 17.21% 3.97% 8.95% 12.80%
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PERFORMANCE SUMMARY
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TAMARACK MICROCAP VALUE FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (f)
------ ------ ------ ------- -------------
Class A (j)
- Including Maximum Sales Charge of
5.75% 16.30% 30.98% 16.72% 14.21% 11.02%
- At Net Asset Value 23.42% 33.61% 18.12% 14.88% 11.38%
Class C (j)
- Including Contingent Deferred Sales
Charge of 1.00% 21.52% 32.63% 17.25% 14.04% 10.55%
- At Net Asset Value 22.52% 32.63% 17.25% 14.04% 10.55%
Class R (j) 23.09% 33.28% 17.82% 14.60% 11.10%
Class S 23.67% 33.95% 18.42% 15.17% 11.66%
Russell 2000 Value Index * 23.77% 30.75% 16.24% 14.03% 12.45%
Russell 2000 Index * 25.85% 29.53% 12.59% 10.15% 9.96%
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PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR
HIGHER THAN PERFORMANCE QUOTED. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT
MONTH-END GO TO WWW.TAMARACKFUNDS.COM.
*Each of the comparative indices is a widely recognized market value weighted
measure of the return of securities. Index returns are calculated on a monthly
basis, but do not include sales fees or operating expenses. You cannot invest
directly in indices.
(a) The since inception date (commencement of operations) of the Fund is
December 31, 1990.
(b) The since inception date (commencement of operations) of the Fund is
January 1, 1995.
(c) The since inception date (commencement of operations) of the Fund is
December 2, 1983.
(d) The since inception date (commencement of operations) of the Fund is August
5, 1991.
(e) The since inception date (commencement of operations) of the Fund is
September 30, 1984.
(f) The since inception date (commencement of operations) of the Fund is
September 10, 1987.
(g) The performance in the table reflects the performance of the former RBC
Funds, the predecessors to the Tamarack Funds. The quoted performance of
the Funds includes the performance of a common trust fund ("CTF") account
advised by the Advisor (including its predecessor) and managed the same as
the Fund in all material respects, for periods dating prior to the Fund's
commencement of operations (October 1, 1996 for the Large Cap Growth Fund,
June 1, 1994 for the Mid Cap Growth Fund, and May 2, 1997 for the Small Cap
Growth Fund), as adjusted to reflect the full contractual rate of expenses
associated with the Fund at its inception. Each CTF account was not
registered with the SEC under the 1940 Act and therefore was not subject to
the investment restrictions imposed by law on registered mutual funds. If
each CTF account had been registered, the CTF account's performance may
have been adversely affected. Fund performance reflects applicable fee
waivers/expense reimbursements (which, if excluded, would cause performance
to be lower).
(h) The inception date for Class C and Class R shares of the Fund is April 19,
2004. All performance shown for each such class of shares prior to its
inception date is based on the performance of the Class A Shares of the
Fund, adjusted to reflect the fees and expenses of Class C and Class R
shares, as applicable (and where applicable, the maximum sales charges of
the Class C shares).
(i) The inception date for Class S of the Fund is April 19, 2004. All
performance shown for such class of shares prior to its inception date is
based on the performance of the Class I Shares of the Fund, adjusted to
reflect the fees and expenses of Class S.
(j) The inception date for Class A, Class C and Class R shares of the Fund is
April 19, 2004. All performance shown for each such class of shares prior
to its inception date is based on the performance of the Class S Shares of
the Fund, adjusted to reflect the fees and expenses of Class A, Class C and
Class R shares, as applicable (and where applicable, the maximum sales
charges of the Class A and Class C shares).
(k) The inception date for Class I shares of the Fund is September 30, 2004.
All performance shown for each such class of shares prior to its inception
date is based on the performance of the Class S Shares of the Fund,
adjusted to reflect the fees and expenses of Class I shares, as applicable.
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MANAGEMENT DISCUSSION AND ANALYSIS
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Tamarack Large Cap Growth Fund
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MARKET COMMENTARY
Investor sentiment has taken a lot of detours during the last six months.
Investors may have had their doubts about the economy and corporate profit
growth during the abbreviated soft patch in the aftermath of Hurricanes Katrina
and Rita. However, economic data along with continued robust company results
finally gained credibility with investors and began to dispel their doubts.
Consequently, we believe the overall market advance since mid-October 2005 can
be viewed as more than a short-term rally. Looking at the six month period, the
broad market S&P 500 returned 6.4%, while the growth-oriented Russell 1000
Growth Index delivered a similarly healthy return of 6.2%.
The stock market's energetic performance during the last six months was
grounded very firmly in fundamentals, reflecting among other things, a strong
first quarter 2006 rebound in GDP growth together with a steady stream of
positive weekly and monthly economic reports. This connection was clearly
indicated in the sector performance trends. The top performing sectors were all
cyclically sensitive in nature, including strong returns from the Materials and
Industrials groups. In contrast, the defensive sectors like Utilities, Consumer
Staples and Health Care were at the bottom of the performance list.
- --------------------------------------------------------------------------------
PERFORMANCE
The Tamarack Large Cap Growth Fund's total return during the six-month period
ending March 31, 2006 was 5.7% (Class A shares, net of fees) slightly
underperforming the Fund's benchmark the Russell 1000 Growth Index, which
returned 6.2% for the same period.
Stock selection was the driver of the fund's performance with the Consumer
Discretionary group contributing the most to returns. Starbucks, McGraw-Hill,
Staples and Home Depot all beat the benchmark return by a significant margin.
Stock picks in Information Technology (Jabil Circuit, Adobe Systems, Cisco
Systems, Paychex and Qualcomm) contributed to returns as did our holding in
Whole Foods Market within the Consumer Staples group. The Fund's
under-performance stemmed largely from allocation and stock selection within
the volatile Energy sector.
- -------------------------------------------------------------------------------
OUTLOOK
Stock selection will likely be as important to investment returns this year as
it was in 2005. Energy stocks' domination in 2005 accounted for a significant
portion of the U.S. equity markets' returns. This year's performance likely
depends much more on company fundamentals rather than a single event, like last
year's oil-price "spike". The more highly charged technology and cyclically
sensitive stocks of the market (including Materials, Industrials and to a lesser
extent, "big ticket" Consumer Goods) should perform well if, as expected, the
economy enjoys solid, manufacturing-led growth in the coming year. These higher
"beta" stocks experienced some of the biggest declines in P/E multiples last
year, making them all the more attractive if the economy performs as well as
expected. Finally, we believe growth stocks are a leading candidate to replace
the Energy sector on the edge of any future rally, based on earnings growth
prospects, valuations, liquidity, restructuring potential and free cash flow for
profit-enhancing investments.
[PHOTO]
Nancy M. Scinto
[PHOTO]
Steven A. Rusnak, CFA
10
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Large Cap Growth Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term capital appreciation.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 1000 Growth Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS
EXCLUDING SECURITIES
LENDING COLLATERAL)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Information Technology 22.0%
COMMON STOCKS Consumer Discretionary 18.9%
99.06% Healthcare 16.1%
CASH EQUIVALENTS Industrials 12.7%
0.94% Consumer Staples 10.0%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
Cisco Systems, Inc. 4.18% General Electric Co. 3.22%
Adobe Systems, Inc. 3.80% Chicago Mercantile Exchange 3.14%
Danaher Corp. 3.67% Holdings, Inc.
Ecolab, Inc. 3.39% SLM Corp. 3.03%
McGraw-Hill Cos., Inc. 3.32% Paychex, Inc. 3.03%
Jabil Circuit, Inc. 3.24%
*A listing of all portfolio holdings can be found on page 59.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
--------------------------------------------------------
RUSSELL
1000
S&P 500 GROWTH
CLASS A INDEX INDEX
--------------------------------------------------------
3/31/96 9,425 10,000 10,000
--------------------------------------------------------
9/30/96 10,070 10,771 11,019
--------------------------------------------------------
3/31/97 10,929 11,982 11,748
--------------------------------------------------------
9/30/97 13,256 15,126 15,019
--------------------------------------------------------
3/31/98 14,653 17,729 17,557
--------------------------------------------------------
9/30/98 12,953 16,499 16,687
--------------------------------------------------------
3/31/99 16,962 21,006 22,493
--------------------------------------------------------
9/30/99 17,124 21,084 22,503
--------------------------------------------------------
3/31/00 20,522 24,773 30,168
--------------------------------------------------------
9/30/00 19,280 23,881 27,775
--------------------------------------------------------
3/31/01 15,265 19,406 17,281
--------------------------------------------------------
9/30/01 13,307 17,527 15,099
--------------------------------------------------------
3/31/02 14,500 19,453 16,935
--------------------------------------------------------
9/30/02 10,416 13,939 11,700
--------------------------------------------------------
3/31/03 10,696 14,638 12,403
--------------------------------------------------------
9/30/03 12,413 17,337 14,733
--------------------------------------------------------
3/31/04 13,882 19,776 16,395
--------------------------------------------------------
9/30/04 13,566 19,740 15,839
--------------------------------------------------------
3/31/05 14,074 21,098 16,585
--------------------------------------------------------
9/30/05 14,624 22,158 17,676
--------------------------------------------------------
3/31/06 15,461 23,571 18,765
--------------------------------------------------------
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares including the maximum sales charge of 5.75%. The quoted
performance of the Fund includes performance of certain collective trust funds
("Commingled Accounts") advised by Centura Bank prior to the establishment of
the Fund on October 1, 1996. On that date, the assets of the Commingled Accounts
were equivalent in all material aspects to those of the Fund. During that time,
the Commingled Accounts were not registered under the Investment Company Act of
1940 (the "1940 Act"), and therefore were not subject to certain investment
restrictions that are imposed under the 1940 Act. If the Commingled Accounts had
been registered under the 1940 Act, the Commingled Accounts' performance may
have been adversely affected. Because the Commingled Accounts did not charge any
expenses, their performance has been adjusted to reflect the Fund's estimated
expenses at the time of its inception, which was 1.00% of average daily net
assets for Class A. The Fund's total return includes reinvested dividends and
capital gains. The Fund's total return also includes operating expenses that
reduce return, while the total return of the index does not. The graph does not
reflect the deduction of taxes that a shareholder would pay on fund
distributions or redemption of fund shares. Performance of other classes will
vary due to differences in fee structures.
11
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Mid Cap Growth Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
Investor sentiment has taken a lot of detours during the last six months.
Investors may have had their doubts about the economy and corporate profit
growth during the abbreviated soft patch in the aftermath of Hurricanes Katrina
and Rita. However, economic data along with continued robust company results
finally gained credibility and began to dispel those doubts. Consequently, the
overall market advance since mid-October 2005 can be viewed as more than a
short-term rally. Looking at the six month period, the broad market S&P Midcap
Index returned 11.2%, while the growth-oriented Russell Midcap Growth Index
delivered a similarly healthy return of 11.3%.
The stock market's energetic performance during the last six months was
grounded very firmly in fundamentals, reflecting among other things, a strong
first quarter 2006 rebound in GDP growth together with a steady stream of
positive weekly and monthly economic reports. This connection was clearly
indicated in the sector performance trends. The top performing sectors were all
cyclically sensitive in nature, including strong returns from the Materials and
Industrials groups. In contrast, the defensive sectors like Utilities and
Consumer Staples were at the bottom of the performance list. To the
consternation of some investors, smaller stocks again led the way, while
mid-cap growth stocks beat their value peers by 2.3% as measured by their
respective Russell indices.
- --------------------------------------------------------------------------------
PERFORMANCE
The Tamarack Mid Cap Growth Fund's total return during the six-month period
ending March 31, 2006 was 18.2% (Class A shares, net of fees), handily
outperforming the Fund's benchmark the Russell Midcap Growth Index which
returned 11.3% during the same period.
The Fund's strong outperformance can be attributed to solid stock selection.
Within selection, the Consumer Discretionary group contributed the most to
returns. Coldwater Creek, SCP Pool, Tractor Supply, O'Reilly Automotive and
Petsmart all beat the benchmark return by a significant margin. Stock picks in
the Industrials group (Fastenal, Expeditors International and Roper Industries)
contributed to returns as did our holdings in Varian Medical Systems and
Express Scripts within the Health Care group.
- --------------------------------------------------------------------------------
OUTLOOK
Stock selection will likely be as important to investment returns this year as
it was in 2005. Energy stocks' domination in 2005 accounted for a significant
portion of the U.S. equity markets' returns. This year's performance likely
depends much more on company fundamentals rather than a single event, like last
year's oil-price "spike". The more highly charged technology and cyclically
sensitive stocks of the market (including Materials, Industrials and to a lesser
extent, "big ticket" Consumer Goods) should perform well if, as expected, the
economy enjoys solid, manufacturing-led growth in the coming year. These higher
"beta", or more volatile, stocks experienced some of the biggest declines in P/E
multiples last year, making them all the more attractive if the economy performs
as well as expected. Finally, we believe growth stocks are a leading candidate
to replace the Energy sector on the edge of any future rally, based on earnings
growth prospects, valuations, liquidity, restructuring potential and free cash
flow for profit-enhancing investments.
[PHOTO]
David J. Cox, CFA
12
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Mid Cap Growth Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term capital appreciation.
- --------------------------------------------------------------------------------
BENCHMARK
Russell Midcap Growth Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS
EXCLUDING SECURITIES
LENDING COLLATERAL)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Industrials 24.6%
COMMON STOCKS Consumer Discretionary 24.5%
98.21% Healthcare 18.3%
CASH EQUIVALENTS Information Technology 13.8%
1.79% Financials 10.3%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
Roper Industries Inc. 3.94% VCA Antech, Inc. 3.42%
Fastenal Co. 3.76% Varian Medical Systems 3.17%
SCP Pool Corp. 3.73% Commerce Bancorp, Inc. 2.94%
Omnicare, Inc. 3.59% Jabil Circuit, Inc. 2.93%
Expeditors International of 3.43% Microchip Technology, Inc. 2.86%
Washington, Inc.
*A listing of all portfolio holdings can be found on page 60.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
--------------------------------------------------------
S&P RUSSELL
MIDCAP MIDCAP
400 GROWTH
CLASS A INDEX INDEX
--------------------------------------------------------
3/31/96 9,425 10,000 10,000
--------------------------------------------------------
9/30/96 9,852 10,588 10,727
--------------------------------------------------------
3/31/97 10,807 11,062 10,634
--------------------------------------------------------
9/30/97 13,568 14,728 13,906
--------------------------------------------------------
3/31/98 14,934 16,486 15,138
--------------------------------------------------------
9/30/98 12,837 13,799 12,603
--------------------------------------------------------
3/31/99 15,503 16,560 16,484
--------------------------------------------------------
9/30/99 15,588 17,317 17,290
--------------------------------------------------------
3/31/00 20,635 22,868 29,210
--------------------------------------------------------
9/30/00 22,323 24,801 27,729
--------------------------------------------------------
3/31/01 18,837 21,277 15,944
--------------------------------------------------------
9/30/01 18,024 20,088 13,374
--------------------------------------------------------
3/31/02 22,318 25,295 16,694
--------------------------------------------------------
9/30/02 16,682 19,145 11,301
--------------------------------------------------------
3/31/03 16,823 19,363 12,335
--------------------------------------------------------
9/30/03 20,547 24,277 15,697
--------------------------------------------------------
3/31/04 23,793 28,871 18,457
--------------------------------------------------------
9/30/04 22,094 28,539 17,844
--------------------------------------------------------
3/31/05 24,018 31,881 19,991
--------------------------------------------------------
9/30/05 25,545 34,862 22,032
--------------------------------------------------------
3/31/06 30,187 38,775 24,525
--------------------------------------------------------
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares including the maximum sales charge of 5.75%. The Fund's
total return includes reinvested dividends and capital gains. The Fund's total
return also includes operating expenses that reduce return, while the total
return of the index does not. The graph does not reflect the deduction of taxes
that a shareholder would pay on fund distributions or redemption of fund shares.
Performance of other classes will vary due to differences in fee structures.
13
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Small Cap Growth Fund
- --------------------------------------------------------------------------------
MARKET COMMENTARY
As the first quarter of 2006 drew to a close, the latest surge in economic
activity finally convinced investors the U.S. economy is robust. Stocks
responded in convincing fashion and burst out of their trading range with
authority. Going back to November 2005, small cap stocks in particular staged a
powerful rally with the Russell 2000 Growth Index and Russell 2000 Index up
16.2% and 15.3%, respectively for the six months ended March 31, 2006. Small
cap stocks continue to outperform large caps, with the Russell 2000 Index
handily outperforming the S&P 500 Index by approximately 890 basis points
during the six month period. All sectors of the Russell 2000 Growth Index
posted strong and impressive returns. Energy, the dominant performing sector in
2005, continued its strength through March 2006, lifting other commodity based
materials stocks, as everything from gold to copper are at twenty-year highs.
Returns were bolstered by strong year over year earnings growth, anticipation
of an acceleration of GDP growth in 2006, compared to the fourth quarter of
2005, and a continuing liquidity-driven market, despite the fact the Federal
Reserve maintains a posture of gradually increasing interest rates. While not
evident in the last three months of 2005, investors in 2006's first quarter
were generally rewarded by taking a somewhat more aggressive and lower quality
approach in selecting stocks, as the best performing groups of small cap growth
stocks had lower S&P quality ratings, higher betas, and lower returns on
equity.
- --------------------------------------------------------------------------------
PERFORMANCE
An expanding economy usually bodes well for small growth stocks, and this
period was no exception. The Tamarack Small Cap Growth Fund's total return
during the six-month period ended March 31, 2006 was 14.7% (Class A shares, net
of fees), compared to a return of 15.2% for the Russell 2000 Index, which is
the Fund's primary benchmark.
Through fundamental research, Voyageur builds diversified portfolios of high
quality, cash flow rich companies that provide long-term investment
opportunities. Voyageur generally invests in those companies that have
industry-leading positions and display high margins and returns on equity
relative to their industry peers. As of March 31, 2006, the portfolio had a
weighted net profit margin of 11.2% and a weighted return on equity of 17.4%.
We own 69 stocks in the portfolio as of March 31, 2006. A substantial portion
of the portfolio's modest underperformance to its benchmark came from security
selection in Industrials. In addition, security selection in Information
Technology and Materials also hurt performance.
- --------------------------------------------------------------------------------
OUTLOOK
We expect the U.S. economy to slow in 2006 from an expected GDP peak growth rate
of 4% in the first quarter to a more sustainable growth rate of around 3%. Core
inflation seems to be under control and slowdowns in consumer spending and the
housing market should be offset by increased business spending amidst declining
but still strong corporate earnings. The equity markets should gradually work
higher, with neither boom nor bust, but the slowing of economic growth and
corporate earnings may lead to volatility as investors question the strength of
the underlying market. New Federal Reserve Chairman Ben Bernanke raised the
Federal Funds rate in March to 4.75% and signals that further increases are
likely in the near term, although there were also hints that the cycle of
increases may be coming to a close. The market is carefully digesting Mr.
Bernanke's comments to determine if he is hawkish or dovish on further Fed
tightening. Higher interest rates will also be affecting the consumer as about
$1 trillion of adjustable rate mortgages will be reset at higher rates over the
next 18 months, reducing consumer discretionary income.
Unlike 2005, when the market was narrow and energy stocks dominated small cap
growth performance, we anticipate investors will rediscover quality small cap
growth stocks in a wide variety of sectors. Returns should be more broad based
and more dependent on company fundamentals. Growth stocks are poised to
outperform in any future rally based on earnings growth prospects, valuations,
liquidity, restructuring potential and free cash flow. Voyageur's portfolio is
well situated for this environment. Along with stock selection, risk control
will also continue to be an essential element of successful investing.
[PHOTO]
Kenneth A. Tyszko, CPA, CFA
[PHOTO]
Forbes L. Watson
14
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Small Cap Growth Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term capital appreciation.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 2000 Growth Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS
EXCLUDING SECURITIES
LENDING COLLATERAL)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Healthcare 20.9%
COMMON STOCKS Information Technology 20.6%
97.06% Industrials 17.4%
CASH EQUIVALENTS Consumer Discretionary 14.7%
2.94% Financials 13.6%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
ANSYS, Inc. 2.90% Shuffle Master, Inc. 2.49%
HealthExtras, Inc. 2.75% Raymond James Financial, Inc. 2.37%
EGL, Inc. 2.63% Simpson Manufacturing Co., Inc. 2.28%
DRS Technologies, Inc. 2.54% Global Payments, Inc. 2.28%
United Natural Foods, Inc. 2.50% Teleflex, Inc. 2.15%
*A listing of all portfolio holdings can be found beginning on page 61.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
--------------------------------------------------------
RUSSELL
RUSSEL 2000
2000 GROWTH
CLASS A INDEX INDEX
--------------------------------------------------------
3/31/96 9,425 10,000 10,000
--------------------------------------------------------
9/30/96 9,990 10,536 10,494
--------------------------------------------------------
3/31/97 10,411 10,511 9,418
--------------------------------------------------------
9/30/97 14,326 14,032 12,945
--------------------------------------------------------
3/31/98 16,075 14,927 13,296
--------------------------------------------------------
9/30/98 12,496 11,364 9,730
--------------------------------------------------------
3/31/99 14,063 12,500 11,828
--------------------------------------------------------
9/30/99 15,797 13,531 12,905
--------------------------------------------------------
3/31/00 18,220 17,162 18,812
--------------------------------------------------------
9/30/00 18,584 16,696 16,733
--------------------------------------------------------
3/31/01 16,763 14,532 11,323
--------------------------------------------------------
9/30/01 15,493 13,155 9,607
--------------------------------------------------------
3/31/02 19,258 16,564 11,883
--------------------------------------------------------
9/30/02 14,977 11,932 7,862
--------------------------------------------------------
3/31/03 15,041 12,097 8,125
--------------------------------------------------------
9/30/03 18,701 16,286 11,143
--------------------------------------------------------
3/31/04 21,407 19,819 13,257
--------------------------------------------------------
9/30/04 21,932 19,344 12,472
--------------------------------------------------------
3/31/05 23,879 20,892 13,373
--------------------------------------------------------
9/30/05 25,125 22,816 14,712
--------------------------------------------------------
3/31/06 28,828 26,292 17,095
--------------------------------------------------------
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares including the maximum sales charge of 5.75%. The Fund's
maximum sales charge is 5.75%. The quoted performance of the Fund includes
performance of certain collective trust funds ("Commingled Accounts") advised by
Centura Bank prior to the establishment of the Fund on May 2, 1997. On that
date, the assets of the Commingled Accounts were equivalent in all material
aspects to those of the Fund. During that time, the Commingled Accounts were not
registered under the Investment Company Act of 1940 (the "1940 Act"), and
therefore were not subject to certain investment restrictions that are imposed
under the 1940 Act. If the Commingled Accounts had been registered under the
1940 Act, the Commingled Accounts' performance may have been adversely affected.
Because the Commingled Accounts did not charge any expenses, their performance
has been adjusted to reflect the Fund's estimated expenses at the time of its
inception, which was 1.50% of average daily net assets for Class A. The Fund's
total return includes reinvested dividends and capital gains. The Fund's total
return also includes operating expenses that reduce return, while the total
return of the index does not. The graph does not reflect the deduction of taxes
that a shareholder would pay on fund distributions or redemption of fund shares.
Performance of other classes will vary due to differences in fee structures.
15
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Enterprise Fund
- --------------------------------------------------------------------------------
MARKET REVIEW
A continuation of GDP growth, coupled with a resumption in employment growth
and an upsurge in consumer confidence provided the underpinnings for a subdued
market rally during the fourth quarter of 2005. This set the table for 2006,
which saw economic activity accelerate significantly during the first quarter.
Performance for economically-sensitive stocks, especially in the Basic
Materials and Producer durables sectors in which the Russell 2000 indices are
more heavily weighted, was particularly strong. Commercial construction also
accelerated off multi-year trough levels and consumer confidence remained
positive. Additionally, a decline in natural gas prices and a stabilization in
oil prices enabled corporate users of those inputs to expand their profit
margins.
Within the small cap universe, the best performing areas during the six-month
reporting period were the materials and processing, producer durables and
technology sectors. Resurging corporate capital spending boosted all three
areas. The weakest small cap areas during the reporting period were the other
energy, consumer staples and utilities sectors. Additionally, concerns about
the impact of higher interest rates on consumers had a negative influence on
consumer stock valuations in the closing half of the period.
- --------------------------------------------------------------------------------
PERFORMANCE
The Enterprise Fund generated strong absolute performance during the six-month
period ending March 31, 2006, returning 12.1% (Class A, net of fees), but
modestly underperformed the Russell 2000 Value Index return of 14.3%. The
majority of the Fund's underperformance during the period can be attributed to
stock selection weakness in the Consumer Discretionary and Technology sectors,
where Fund holdings advanced but not at the brisk pace of corresponding
benchmark positions. On the upside, results during the period were highly
favorable for the Fund's holdings in Autos and Transportation, Other Energy and
Health care holdings. A relative overweight in Technology names and a relative
underweight in Financial services names also added value.
- --------------------------------------------------------------------------------
OUTLOOK
The big question for equity markets now is when the Federal Reserve will halt
its long-standing tightening policy. Investors will be carefully monitoring
future economic reports for signs of weakness or renewed inflation, factors
that will be keys to any Fed action. Uncertainty concerning the Fed's actions
could increase market volatility in the months ahead.
We believe the Fund continues to be positioned strongly to capitalize on the
resurgence in economic growth seen in the first quarter of 2006. The Fund
remains overweighted relative to the Russell 2000 Value Index in Materials and
Processing, Technology and Consumer discretionary stocks.
[PHOTO]
Lance F. James
[PHOTO]
Renie K. Heebner, CFA
16
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Enterprise Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term growth of capital.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 2000 Value Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS
EXCLUDING SECURITIES
LENDING COLLATERAL)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Financials 17.4%
COMMON STOCKS Industrials 16.9%
94.35% Consumer Discretionary 16.5%
CASH EQUIVALENTS Information Technology 15.9%
3.96% Materials 10.3%
U.S. GOVERNMENT AGENCY OBLIGATIONS
1.69%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
EDO Corp. 2.78% ABM Industries, Inc. 2.40%
Movado Group, Inc. 2.63% Penwest Pharmaceuticals Co. 2.32%
Tetra Technologies, Inc. 2.60% ASTA Funding, Inc. 2.07%
U.S. Concrete, Inc. 2.53% Quixote Corp. 2.03%
Stellent, Inc. 2.45% Allied Defense Group, Inc. 2.03%
*A listing of all portfolio holdings can be found beginning on page 63.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
--------------------------------------------------------
RUSSELL
2000
VALUE
CLASS A CLASS S INDEX
--------------------------------------------------------
3/31/96 9,425 10,000 10,000
--------------------------------------------------------
9/30/96 9,886 10,503 10,564
--------------------------------------------------------
3/31/97 11,025 11,728 11,598
--------------------------------------------------------
9/30/97 14,352 15,286 15,069
--------------------------------------------------------
3/31/98 14,814 15,797 16,602
--------------------------------------------------------
9/30/98 11,644 12,432 13,141
--------------------------------------------------------
3/31/99 10,847 11,596 12,944
--------------------------------------------------------
9/30/99 11,455 12,261 13,907
--------------------------------------------------------
3/31/00 12,819 13,738 14,660
--------------------------------------------------------
9/30/00 13,396 14,374 16,043
--------------------------------------------------------
3/31/01 13,477 14,479 17,512
--------------------------------------------------------
9/30/01 14,800 15,920 16,943
--------------------------------------------------------
3/31/02 19,587 21,095 21,670
--------------------------------------------------------
9/30/02 15,223 16,416 16,695
--------------------------------------------------------
3/31/03 15,798 17,057 16,626
--------------------------------------------------------
9/30/03 20,539 22,203 21,981
--------------------------------------------------------
3/31/04 25,627 27,738 27,348
--------------------------------------------------------
9/30/04 25,242 27,371 27,621
--------------------------------------------------------
3/31/05 26,704 28,989 30,025
--------------------------------------------------------
9/30/05 29,113 31,633 32,524
--------------------------------------------------------
3/31/06 32,646 35,532 37,162
--------------------------------------------------------
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares including the maximum sales charge of 5.75%. The
inception date for Class A shares of the Fund is April 19, 2004. All performance
shown for Class A shares prior to the inception date is based on the performance
of the Class S shares of the Fund, adjusted to reflect the fees, expenses and
maximum sales charges of Class A shares. The Fund's maximum sales charge is
5.75%. The Fund's total return includes reinvested dividends and capital gains.
The Fund's total return also includes operating expenses that reduce return,
while the total return of the index does not. The graph does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. Performance of other classes will vary due to
differences in fee structures.
17
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Enterprise Small Cap Fund
- --------------------------------------------------------------------------------
MARKET REVIEW
A continuation of GDP growth, coupled with a resumption in employment growth
and an upsurge in consumer confidence provided the underpinnings for a subdued
market rally during the fourth quarter of 2005. This set the table for 2006,
which saw economic activity accelerate significantly during the first quarter.
Performance for economically-sensitive stocks, especially in the Basic
materials and Producer durables sectors in which the Russell 2000 indices are
more heavily weighted, was particularly strong. Commercial construction also
accelerated off multi-year trough levels and consumer confidence remained
positive. Additionally, a decline in natural gas prices and a stabilization in
oil prices enabled corporate users of those inputs to expand their profit
margins.
Within the small cap universe, the best performing areas during the six-month
reporting period were the Materials and processing, Producer durables and
Technology sectors. Resurging corporate capital spending boosted all three
areas. The weakest small cap areas during the reporting period were the Other
energy, Consumer staples and Utilities sectors. Additionally, concerns about
the impact of higher interest rates on consumers had a negative influence on
consumer stock valuations in the closing half of the period.
- --------------------------------------------------------------------------------
PERFORMANCE
The Enterprise Small Cap Fund, returning 17.3% (Class A, net of fees) strongly
outperformed the Russell 2000 Index return of 15.2% during the six-month
reporting period ending March 31, 2006. Both the Fund's stock selection and its
overall positioning versus the benchmark added significant value during the
period. Selection was particularly strong in the Financial services, Health
care and Materials and processing sectors. Additionally, the Fund's holdings in
Other energy and Autos and transportation holdings provided favorable added
value. The Fund's emphasis on economically sensitive stocks that benefited from
accelerating economic activity also helped during the period, particularly its
overweights relative to the benchmark in Materials and industrials names.
Detracting from results during the period was stock selection in the Producer
durables, Technology and Consumer discretionary sectors.
- --------------------------------------------------------------------------------
OUTLOOK
The big question for equity markets now is when the Federal Reserve will halt
its long-standing tightening policy. Investors will be carefully monitoring
future economic reports for signs of weakness or renewed inflation, factors
that will be keys to any Fed action. Uncertainty concerning the Fed's actions
could increase market volatility in the months ahead.
The Fund has benefited in 2006 from the resurgence in economic growth and the
moderation in energy prices. We remain overweighted relative to the Russell 2000
Index in materials and processing, industrial and Consumer discretionary stocks;
areas in which we expect to see continued benefit from firm economic growth.
[PHOTO]
Lance F. James
18
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Enterprise Small Cap Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term growth of capital.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 2000 Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS
EXCLUDING SECURITIES
LENDING COLLATERAL)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Consumer Discretionary 29.0%
COMMON STOCKS Industrials 16.0%
98.55% Financials 15.6%
CASH EQUIVALENTS Materials 13.8%
1.45% Healthcare 10.1%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
Carlisle Co. 4.13% Steinway Musical 2.77%
Movado Group, Inc. 4.02% Instruments, Inc.
Gardner Denver, Inc. 3.98% PSS World Medical, Inc. 2.71%
Interface, Inc. 3.71% Ashford Hospitality Trust, Inc. 2.62%
Polymedica Corp. 3.14% ElkCorp 2.48%
Men's Wearhouse, Inc. 2.26%
*A listing of all portfolio holdings can be found beginning on page 65.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
--------------------------------------------------------
RUSSELL
2000
CLASS A CLASS S INDEX
--------------------------------------------------------
3/31/96 9,425 10,000 10,000
--------------------------------------------------------
9/30/96 9,861 10,476 10,536
--------------------------------------------------------
3/31/97 10,707 11,389 10,511
--------------------------------------------------------
9/30/97 14,125 15,043 14,032
--------------------------------------------------------
3/31/98 15,404 16,426 14,927
--------------------------------------------------------
9/30/98 11,813 12,613 11,364
--------------------------------------------------------
3/31/99 12,356 13,209 12,500
--------------------------------------------------------
9/30/99 13,478 14,426 13,531
--------------------------------------------------------
3/31/00 14,724 15,780 17,162
--------------------------------------------------------
9/30/00 16,008 17,178 16,696
--------------------------------------------------------
3/31/01 16,854 17,033 14,532
--------------------------------------------------------
9/30/01 15,103 16,247 13,155
--------------------------------------------------------
3/31/02 18,584 20,016 16,564
--------------------------------------------------------
9/30/02 14,636 15,783 11,932
--------------------------------------------------------
3/31/03 14,413 15,562 12,097
--------------------------------------------------------
9/30/03 18,918 20,451 16,286
--------------------------------------------------------
3/31/04 23,093 24,995 19,819
--------------------------------------------------------
9/30/04 23,384 25,337 19,344
--------------------------------------------------------
3/31/05 24,602 26,687 20,892
--------------------------------------------------------
9/30/05 25,412 27,589 22,816
--------------------------------------------------------
3/31/06 29,797 32,397 26,292
--------------------------------------------------------
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares including the maximum sales charge of 5.75%. The
inception date for Class A shares of the Fund is April 19, 2004. All performance
shown for Class A shares prior to the inception date is based on the performance
of the Class S shares of the Fund, adjusted to reflect the fees, expenses and
maximum sales charges of Class A shares. The Fund's maximum sales charge is
5.75%. The Fund's total return includes reinvested dividends and capital gains.
The Fund's total return also includes operating expenses that reduce return,
while the total return of the index does not. The graph does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. Performance of other classes will vary due to
differences in fee structures.
19
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Value Fund
- --------------------------------------------------------------------------------
MARKET REVIEW
Investor sentiment has taken a lot of detours during the last six months.
Investors may have had their doubts about the economy and corporate profit
growth during the abbreviated soft patch in the aftermath of Hurricanes Katrina
and Rita. However, economic data along with continued robust company results
finally gained credibility and began to dispel those doubts. Consequently, the
overall market advance since mid-October 2005 can be viewed as more than a
short-term phenomenon. Although value stocks continued to outperform growth
stocks in the large cap space in the first few months of 2006, the dominance of
value over growth has slowed significantly, with the Russell Large Value index
holding only a slight 20 basis point edge over the Russell Large Growth index
(13.3% vs. 13.1%) for the twelve month period ended March 31, 2006.
The stock market's energetic performance during the last six months was
grounded very firmly in fundamentals, reflecting among other things, a strong
first quarter 2006 rebound in GDP growth together with a steady stream of
positive weekly and monthly economic reports. This connection was clearly
indicated in the sector performance trends. The top performing sectors were all
cyclically sensitive in nature, including strong returns from the Materials and
Industrials groups. In contrast, the defensive sectors like Utilities and
Consumer Staples were at the bottom of the performance list.
- --------------------------------------------------------------------------------
PERFORMANCE
The Tamarack Value Fund's total return during the six-month period ending March
31, 2006 was 4.4% (Class A shares, net of fees) underperforming the Fund's
benchmark, the Russell 1000 Value Index, which returned 7.3% for the same
period. The Fund's underweighting in the Oil and Gas sector relative to the
benchmark and poor stock selection in the Pharmaceutical and Insurance sectors
contributed to the Fund's underperformance for the period.
- --------------------------------------------------------------------------------
OUTLOOK
We expect the U.S. economy to slow in 2006 from an expected GDP peak growth
rate of 4% in the first quarter to a more sustainable growth rate of around 3%.
Core inflation seems to be under control and slowdowns in consumer spending and
the housing market should be offset by increased business spending amidst
declining but still strong corporate earnings. The equity markets should
gradually work higher, with neither boom nor bust, but the slowing of economic
growth and corporate earnings may lead to volatility as investors question the
strength of the underlying market. We expect that returns should be more broad
based and more dependent on company fundamentals rather than sector
favorability.
20
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Value Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term growth of capital and income.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 1000 Value Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS
EXCLUDING SECURITIES
LENDING COLLATERAL)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Financials 29.8%
COMMON STOCKS Information Technology 11.9%
96.31% Energy 11.6%
CASH EQUIVALENTS Consumer Discretionary 11.3%
3.69% Industrials 10.4%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
Citigroup, Inc. 3.58% International Business Machines 2.83%
American International 3.57% Verizon Communications, Inc. 2.72%
Group, Inc. Wachovia Corp. 2.69%
Morgan Stanley 3.43% American Express Co. 2.68%
Exxon Mobil Corp. 3.30% Bank of America Corp. 2.64%
United Parcel Service, Inc. 2.91%
Class B
*A listing of all portfolio holdings can be found beginning on page 67.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
--------------------------------------------------------
RUSSELL
1000
VALUE
CLASS A CLASS S INDEX
--------------------------------------------------------
3/31/96 9,425 10,000 10,000
--------------------------------------------------------
9/30/96 9,961 10,582 10,468
--------------------------------------------------------
3/31/97 10,951 11,649 11,807
--------------------------------------------------------
9/30/97 13,715 14,607 14,897
--------------------------------------------------------
3/31/98 15,397 16,419 17,377
--------------------------------------------------------
9/30/98 12,591 13,444 15,433
--------------------------------------------------------
3/31/99 14,308 15,296 18,253
--------------------------------------------------------
9/30/99 14,256 15,259 18,322
--------------------------------------------------------
3/31/00 13,640 14,617 19,410
--------------------------------------------------------
9/30/00 14,504 15,563 19,955
--------------------------------------------------------
3/31/01 15,296 16,433 19,462
--------------------------------------------------------
9/30/01 14,354 15,440 18,177
--------------------------------------------------------
3/31/02 16,618 17,898 20,315
--------------------------------------------------------
9/30/02 13,012 14,032 15,096
--------------------------------------------------------
3/31/03 12,156 13,125 15,685
--------------------------------------------------------
9/30/03 14,373 15,539 18,775
--------------------------------------------------------
3/31/04 16,460 17,816 22,088
--------------------------------------------------------
9/30/04 16,959 18,375 22,626
--------------------------------------------------------
3/31/05 18,725 20,312 24,996
--------------------------------------------------------
9/30/05 18,845 20,473 26,402
--------------------------------------------------------
3/31/06 19,673 21,400 28,323
--------------------------------------------------------
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares including the maximum sales charge of 5.75%. The
inception date for Class A shares of the Fund is April 19, 2004. All performance
shown for Class A shares prior to the inception date is based on the performance
of the Class S shares of the Fund, adjusted to reflect the fees, expenses and
maximum sales charges of Class A shares. The Fund's maximum sales charge is
5.75%. The Fund's total return includes reinvested dividends and capital gains.
The Fund's total return also includes operating expenses that reduce return,
while the total return of the index does not. The graph does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. Performance of other classes will vary due to
differences in fee structures.
21
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Microcap Value Fund
- --------------------------------------------------------------------------------
MARKET REVIEW
Investor sentiment has taken a lot of detours during the last six months.
Investors may have had their doubts about the economy and corporate profit
growth during the abbreviated soft patch in the aftermath of Hurricanes Katrina
and Rita. However, economic data along with continued robust company results
finally gained credibility and began to dispel those doubts. Consequently, the
overall market advance since mid-October 2005 can be viewed as more than a
short-term phenomenon. Looking at the six month period, small-cap stocks in
particular staged a powerful rally with the Russell 2000 Value Index returning
14.3%.
The stock market's energetic performance during the last six months was
grounded very firmly in fundamentals, reflecting among other things, a strong
first quarter 2006 rebound in GDP growth together with a steady stream of
positive weekly and monthly economic reports. This connection was clearly
indicated in the sector performance trends. The top performing sectors were all
cyclically sensitive in nature, including strong returns from the Materials and
Industrials groups. In contrast, the defensive sectors like Utilities, and
Consumer Staples were at the bottom of the performance list.
- --------------------------------------------------------------------------------
PERFORMANCE
The Tamarack Microcap Value Fund's total return during the six-month period
ending March 31, 2006 was 14.3% (Class A shares, net of fees) essentially
matching the performance of the Fund's benchmark, the Russell 2000 Value Index,
which returned 14.3% for the same period. The Fund, which is managed using a
proprietary quantitative model, holds up to 400 stocks during any period, which
means that no individual holding represents a material portion of the Fund's
assets. During the six-month period ended March 31, 2006, no individual Fund
holding either significantly under-or out-performed the Fund's benchmark.
- --------------------------------------------------------------------------------
OUTLOOK
We expect the U.S. economy to slow in 2006 from an expected GDP peak growth
rate of 4% in the first quarter to a more sustainable growth rate of around 3%.
Core inflation seems to be under control and slowdowns in consumer spending and
the housing market should be offset by increased business spending amidst
declining but still strong corporate earnings. The equity markets should
gradually work higher, with neither boom nor bust, but the slowing of economic
growth and corporate earnings may lead to volatility as investors question the
strength of the underlying market. Unlike 2005, when the market was narrow and
energy stocks dominated small cap performance, we anticipate investors will
rediscover quality small and micro cap stocks in a wide variety of sectors.
Returns should be more broad based and more dependent on company fundamentals.
22
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Microcap Value Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Long-term growth of capital.
- --------------------------------------------------------------------------------
BENCHMARK
Russell 2000 Value Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS
EXCLUDING SECURITIES
LENDING COLLATERAL)
& TOP FIVE INDUSTRIES
(% OF FUND'S NET ASSETS)
[PIE CHART] TOP FIVE INDUSTRIES
Consumer Discretionary 25.0%
COMMON STOCKS Financials 20.3%
98.1% Industrials 13.8%
U.S. GOVERNMENT AGNCY OBLIGATIONS Utilities 8.0%
1.9% Energy 3.7%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
AMERCO 1.84% Isle of Capri Casinos, Inc. 0.96%
Dril-Quip, Inc. 1.26% AMCOL International Corp. 0.94%
Aviall, Inc. 1.17% Mobile Mini, Inc. 0.92%
RTI International Metals, Inc. 1.16% Gibraltar Industries Inc. 0.90%
Credit Acceptance Corp. 1.11% Old Dominion Freight 0.90%
*A listing of all portfolio holdings can be found beginning on page 69.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
--------------------------------------------------------
RUSSELL
2000
VALUE
CLASS A CLASS S INDEX
--------------------------------------------------------
3/31/96 9,425 10,000 10,000
--------------------------------------------------------
9/30/96 9,724 10,327 10,564
--------------------------------------------------------
3/31/97 10,560 11,229 11,598
--------------------------------------------------------
9/30/97 13,904 14,803 15,069
--------------------------------------------------------
3/31/98 14,674 15,642 16,602
--------------------------------------------------------
9/30/98 12,544 13,388 13,141
--------------------------------------------------------
3/31/99 12,198 13,035 12,944
--------------------------------------------------------
9/30/99 13,533 14,480 13,907
--------------------------------------------------------
3/31/00 15,555 16,663 14,660
--------------------------------------------------------
9/30/00 16,599 17,804 16,043
--------------------------------------------------------
3/31/01 16,423 17,637 17,512
--------------------------------------------------------
9/30/01 16,900 18,171 16,943
--------------------------------------------------------
3/31/02 20,799 22,392 21,670
--------------------------------------------------------
9/30/02 16,447 17,729 16,695
--------------------------------------------------------
3/31/03 15,831 17,086 16,626
--------------------------------------------------------
9/30/03 22,007 23,782 21,981
--------------------------------------------------------
3/31/04 27,898 30,185 27,348
--------------------------------------------------------
9/30/04 27,616 29,931 27,621
--------------------------------------------------------
3/31/05 30,594 33,207 30,025
--------------------------------------------------------
9/30/05 33,035 35,883 32,524
--------------------------------------------------------
3/31/06 37,758 41,065 37,162
--------------------------------------------------------
The graph reflects an initial investment of $10,000 over a 10 year period and is
based on Class A shares including the maximum sales charge of 5.75%. The
inception date for Class A shares of the Fund is April 19, 2004. All performance
shown for Class A shares prior to the inception date is based on the performance
of the Class S shares of the Fund, adjusted to reflect the fees, expenses and
maximum sales charges of Class A shares. The Fund's total return includes
reinvested dividends and capital gains. The Fund's total return also includes
operating expenses that reduce return, while the total return of the index does
not. The graph does not reflect the deduction of taxes that a shareholder would
pay on fund distributions or redemption of fund shares. Performance of other
classes will vary due to differences in fee structures.
23
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
MARCH 31, 2006
(UNAUDITED)
TAMARACK TAMARACK TAMARACK TAMARACK
LARGE CAP MID CAP SMALL CAP ENTERPRISE
GROWTH FUND GROWTH FUND GROWTH FUND FUND
------------- ------------- ------------- -------------
ASSETS:
Investments, at market value (cost
$125,206,205; $96,519,023;
$9,148,167 and $276,861,235,
respectively) $ 145,707,026 $ 124,974,289 $ 12,332,854 $ 395,676,475
Investment of Cash Collateral
for Securities on Loan, at
market value (cost $13,635,787;
$18,111,483; $- and
$55,643,507, respectively) 13,635,787 18,111,483 -- 55,643,507
------------- ------------- ------------- -------------
Total Investments 159,342,813 143,085,772 12,332,854 451,319,982
Interest and dividends receivable 100,354 28,233 3,766 233,981
Cash -- -- -- 92,944
Receivable for capital shares issued 10,360 988,677 269 472,172
Receivable for investments sold -- -- 22,993 454,954
Receivable from advisor -- -- 5,553 --
Prepaid expenses 28,437 26,195 22,461 48,974
------------- ------------- ------------- -------------
Total Assets 159,481,964 144,128,877 12,387,896 452,623,007
------------- ------------- ------------- -------------
LIABILITIES:
Payable for capital shares redeemed 85,095 103,845 1,770 249,368
Payable for investments purchased -- -- 29,730 247,260
Payable upon return of securities on
loan 13,635,787 18,111,483 -- 55,643,507
Accrued expenses and other
payables:
Investment advisory fees 62,085 58,873 -- 247,434
Administration fees 12,441 10,369 1,011 32,509
Distribution fees 1,246 10,349 1,639 4,559
Other 143,424 63,323 29,885 211,882
------------- ------------- ------------- -------------
Total Liabilities 13,940,078 18,358,242 64,035 56,636,519
------------- ------------- ------------- -------------
Net Assets $ 145,541,886 $ 125,770,635 $ 12,323,861 $ 395,986,488
============= ============= ============= =============
NET ASSETS CONSIST OF:
Capital $ 160,863,973 $ 92,243,179 $ 8,628,637 $ 263,028,378
Undistributed net investment loss (41,556) (328,335) (70,367) (217,791)
Accumulated net realized gains
(losses) from investment
transactions (35,781,352) 5,400,525 580,904 14,360,661
Net unrealized appreciation
(depreciation) on investments 20,500,821 28,455,266 3,184,687 118,815,240
------------- ------------- ------------- -------------
Net Assets $ 145,541,886 $ 125,770,635 $ 12,323,861 $ 395,986,488
============= ============= ============= =============
NET ASSETS:
Class A $ 5,710,052 $ 48,549,162 $ 7,483,313 $ 16,603,718
Class I 1,640,418 74,951,053 4,415,893 33,438,350
Class C 26,312 430,535 50,676 1,551,704
Class R 10,329 11,201 37,919 54,452
Class S 138,154,775 1,828,684 336,060 344,338,264
------------- ------------- ------------- -------------
Total $ 145,541,886 $ 125,770,635 $ 12,323,861 $ 395,986,488
============= ============= ============= =============
24
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
TAMARACK TAMARACK TAMARACK TAMARACK
LARGE CAP MID CAP SMALL CAP ENTERPRISE
GROWTH FUND GROWTH FUND GROWTH FUND FUND
-------------- -------------- -------------- --------------
SHARES OUTSTANDING:
Class A 507,058 3,572,581 653,411 634,836
Class I 144,123 5,362,168 373,754 1,270,896
Class C 2,371 32,155 4,519 60,311
Class R 922 829 3,339 2,094
Class S 12,136,626 130,677 28,474 13,089,781
-------------- -------------- -------------- --------------
Total 12,791,100 9,098,410 1,063,497 15,057,918
============== ============== ============== ==============
NET ASSET VALUES:
Class A (a) $ 11.26 $ 13.59 $ 11.45 $ 26.15
============== ============== ============== ==============
Class I $ 11.38 $ 13.98 $ 11.81 $ 26.31
============== ============== ============== ==============
Class C (b) $ 11.10 $ 13.39 $ 11.21 $ 25.73
============== ============== ============== ==============
Class R $ 11.20 $ 13.52 $ 11.36 $ 26.00
============== ============== ============== ==============
Class S $ 11.38 $ 13.99 $ 11.80 $ 26.31
============== ============== ============== ==============
MAXIMUM OFFERING PRICE PER SHARE:
Class A $ 11.95 $ 14.42 $ 12.15 $ 27.75
============== ============== ============== ==============
Maximum Sales Charge - Class A 5.75% 5.75% 5.75% 5.75%
============== ============== ============== ==============
(a) For Class A shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase (only applicable on purchases
of $1 million or more).
(b) For Class C shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
25
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
MARCH 31, 2006
(UNAUDITED)
TAMARACK TAMARACK
ENTERPRISE TAMARACK MICROCAP
SMALL CAP FUND VALUE FUND VALUE FUND
-------------- ------------- -------------
ASSETS:
Investments, at market value (cost
$47,065,065; $219,011,146
and $170,647,163, respectively) $ 74,781,449 $ 317,080,157 $ 260,933,082
Investment of Cash Collateral
for Securities on Loan, at
market value (cost $11,226,790; $21,145,029
and $-, respectively) 11,226,790 21,145,029 --
------------- ------------- -------------
Total Investments 86,008,239 338,225,186 260,933,082
Interest and dividends receivable 47,348 610,301 108,001
Cash -- -- 205,925
Receivable for capital shares issued 51,380 55,734 316,225
Receivable for investments sold 277,688 -- --
Prepaid expenses 28,584 52,293 35,757
------------- ------------- -------------
Total Assets 86,413,239 338,943,514 261,598,990
------------- ------------- -------------
LIABILITIES:
Payable for capital shares redeemed 34,615 4,410,249 72,066
Payable for investments purchased 22,930 -- --
Payable upon return of securities on loan 11,226,790 21,145,029 --
Accrued expenses and other payables:
Investment advisory fees 46,042 183,929 160,512
Administration fees 6,250 28,347 21,374
Distribution fees 1,087 255 4,388
Other 47,500 218,447 31,217
------------- ------------- -------------
Total Liabilities 11,385,214 25,986,256 289,557
------------- ------------- -------------
Net Assets $ 75,028,025 $ 312,957,258 $ 261,309,433
============= ============= =============
NET ASSETS CONSIST OF:
Capital $ 43,725,897 $ 197,609,938 $ 169,373,561
Undistributed net investment
income (loss) (149,713) 2,180,998 (804,474)
Accumulated net realized gains
from investments 3,735,457 15,097,311 2,454,427
Net unrealized appreciation on
investments 27,716,384 98,069,011 90,285,919
------------- ------------- -------------
Net Assets $ 75,028,025 $ 312,957,258 $ 261,309,433
============= ============= =============
NET ASSETS:
Class A $ 3,279,390 $ 1,028,401 $ 18,508,667
Class C 505,437 22,596 1,129,262
Class R 15,827 3,846 91,757
Class S 71,227,371 311,902,415 241,579,747
------------- ------------- -------------
Total $ 75,028,025 $ 312,957,258 $ 261,309,433
============= ============= =============
26
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
TAMARACK TAMARACK
ENTERPRISE TAMARACK MICROCAP
SMALL CAP FUND VALUE FUND VALUE FUND
-------------- -------------- --------------
SHARES OUTSTANDING:
Class A 100,331 25,768 822,868
Class C 15,734 571 50,786
Class R 487 96 4,086
Class S 2,167,901 7,800,474 10,706,232
-------------- -------------- --------------
Total 2,284,453 7,826,909 11,583,972
============== ============== ==============
NET ASSET VALUES:
Class A (a) $ 32.69 $ 39.91 $ 22.49
============== ============== ==============
Class C (b) $ 32.12 $ 39.60 $ 22.24
============== ============== ==============
Class R $ 32.47 $ 39.91 $ 22.46
============== ============== ==============
Class S $ 32.86 $ 39.99 $ 22.56
============== ============== ==============
MAXIMUM OFFERING PRICE PER SHARE:
Class A $ 34.68 $ 42.34 $ 23.86
============== ============== ==============
Maximum Sales Charge - Class A 5.75% 5.75% 5.75%
============== ============== ==============
(a) For Class A shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase (only applicable on purchases
of $1 million or more).
(b) For Class C shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
27
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS ENDED
MARCH 31, 2006
(UNAUDITED)
TAMARACK TAMARACK TAMARACK TAMARACK
LARGE CAP MID CAP SMALL CAP ENTERPRISE
GROWTH FUND GROWTH FUND GROWTH FUND FUND
------------ ------------ ------------ ------------
INVESTMENT INCOME:
Interest income $ 560 $ 1,494 $ 72 $ 97,052
Dividend income 711,627 351,254 22,828 1,662,827
Securities lending income (a) 8,385 12,706 -- 35,029
------------ ------------ ------------ ------------
Total Investment Income 720,572 365,454 22,900 1,794,908
------------ ------------ ------------ ------------
EXPENSES:
Investment advisory fees 528,074 403,902 40,993 1,732,563
Administration fees 75,438 57,700 5,856 184,195
Distribution fees - Class A 15,179 114,122 17,262 36,169
Distribution fees - Class C 129 1,990 267 5,151
Distribution fees - Class R 27 34 95 140
Accounting fees 54,437 42,143 6,472 130,930
Custodian fees 2,099 964 2,542 5,083
Insurance fees 8,721 5,887 1,481 20,128
Legal and Audit fees 17,871 16,984 10,609 26,667
Registration and filing fees 27,199 26,228 26,204 28,110
Shareholder reports 25,204 10,050 3,796 32,800
Transfer agent fees 166,240 130,430 39,652 198,605
Trustees' fees 12,865 12,865 12,865 12,865
Other fees 4,233 3,516 2,170 6,959
------------ ------------ ------------ ------------
Total expenses before fee
reductions 937,716 826,815 170,264 2,420,365
Expenses reduced by:
Advisor (167,989) (75,965) (68,900) (389,581)
Distributor (7,590) (57,061) (8,097) (18,085)
------------ ------------ ------------ ------------
Net Expenses 762,137 693,789 93,267 2,012,699
------------ ------------ ------------ ------------
NET INVESTMENT LOSS (41,565) (328,335) (70,367) (217,791)
------------ ------------ ------------ ------------
REALIZED/UNREALIZED GAINS FROM
INVESTMENTS:
Net realized gains from investment
transactions 5,541,329 5,883,086 769,172 17,517,721
Net change in unrealized
appreciation (depreciation) on
investments 3,281,559 13,612,714 936,654 26,328,896
------------ ------------ ------------ ------------
Net realized/unrealized gains from
investments 8,822,888 19,495,800 1,705,826 43,846,617
------------ ------------ ------------ ------------
Change in net assets resulting from
operations $ 8,781,323 $ 19,167,465 $ 1,635,459 $ 43,628,826
============ ============ ============ ============
(a) For more information on Securities Lending please see Footnote 2 in the
Notes to Financial Statements.
SEE NOTES TO FINANCIAL STATEMENTS.
28
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations (cont.)
- --------------------------------------------------------------------------------
FOR THE
SIX MONTHS ENDED
MARCH 31, 2006
(UNAUDITED)
TAMARACK TAMARACK
ENTERPRISE TAMARACK MICROCAP
SMALL CAP FUND VALUE FUND VALUE FUND
-------------- ------------ ------------
INVESTMENT INCOME:
Interest income $ 1,720 $ 1,008 $ 70,089
Dividend income 306,762 4,181,715 1,402,941
Securities lending income (a) 8,190 31,644 --
------------ ------------ ------------
Total Investment Income 316,672 4,214,367 1,473,030
------------ ------------ ------------
EXPENSES:
Investment advisory fees 393,205 1,503,000 1,096,326
Administration fees 35,379 176,822 121,813
Distribution fees - Class A 7,357 4,855 32,171
Distribution fees - Class C 2,739 127 3,411
Distribution fees - Class R 41 9 271
Accounting fees 27,094 125,183 92,400
Custodian fees 3,119 3,605 3,388
Insurance fees 4,687 21,717 12,977
Legal and Audit fees 12,875 26,206 18,843
Registration and filing fees 20,238 23,285 21,072
Shareholder reports 8,543 42,610 13,436
Transfer agent fees 64,484 246,698 77,129
Trustees' fees 12,865 12,865 12,865
Other fees 2,995 7,037 5,186
------------ ------------ ------------
Total expenses before fee reductions 595,621 2,194,019 1,511,288
Expenses reduced by:
Advisor (125,557) (308,766) (132,702)
Distributor (3,679) (2,428) (16,085)
------------ ------------ ------------
Net Expenses 466,385 1,882,825 1,362,501
------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) (149,713) 2,331,542 110,529
------------ ------------ ------------
REALIZED/UNREALIZED GAINS
(LOSSES) FROM INVESTMENTS:
Net realized gains from
investment transactions 4,441,075 21,791,548 6,039,571
Net change in unrealized
appreciation (depreciation) on
investments 7,257,136 (8,184,452) 27,256,644
------------ ------------ ------------
Net realized/unrealized gains from
investments 11,698,211 13,607,096 33,296,215
------------ ------------ ------------
Change in net assets resulting from
operations $ 11,548,498 $ 15,938,638 $ 33,406,744
============ ============ ============
(a) For more information on Securities Lending please see Footnote 2 in the
Notes to Financial Statements.
SEE NOTES TO FINANCIAL STATEMENTS.
29
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK LARGE CAP GROWTH FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
------------------ -------------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income (loss) $ (41,565) $ 420,903
Net realized gains from investment transactions 5,541,329 9,890,744
Net change in unrealized appreciation (depreciation)
on investments 3,281,559 4,068,284
------------- -------------
Change in net assets from operations 8,781,323 14,379,931
------------- -------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions -- --
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income (928) (28,865)
From net realized gains from investment
transactions -- --
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions -- --
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income -- (42)
From net realized gains from investment
transactions -- --
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income (62,129) (328,930)
From net realized gains from investment
transactions -- --
------------- -------------
Change in net assets from shareholder distributions (63,057) (357,837)
------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 1,063,938 7,534,200
Dividends reinvested 56,446 313,496
Cost of shares redeemed (19,901,207) (65,259,273)
------------- -------------
Change in net assets from capital transactions (18,780,823) (57,411,577)
------------- -------------
Net decrease in net assets (10,062,557) (43,389,483)
NET ASSETS:
Beginning of period 155,604,443 198,993,926
------------- -------------
End of period $ 145,541,886 $ 155,604,443
============= =============
Undistributed net investment income (loss) $ (41,556) $ 63,066
============= =============
SHARE TRANSACTIONS:
Issued 95,936 713,468
Reinvested 4,982 29,246
Redeemed (1,787,758) (6,226,950)
------------- -------------
Change in shares from capital transactions (1,686,840) (5,484,236)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
30
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK MID CAP GROWTH FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
---------------- ------------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment loss $ (328,335) $ (785,103)
Net realized gains from investment transactions 5,883,086 4,851,209
Net change in unrealized appreciation (depreciation)
on investments 13,612,714 12,514,711
------------- -------------
Change in net assets from operations 19,167,465 16,580,817
------------- -------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (855,699) (9,226,758)
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (1,192,053) (5,318,196)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (7,302) (1,745)
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (186) (10,043)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (28,062) (32,824)
------------- -------------
Change in net assets from shareholder distributions (2,083,302) (14,589,566)
------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 11,273,167 74,209,628
Dividends reinvested 2,033,563 13,891,641
Cost of shares redeemed (14,548,335) (98,231,552)
------------- -------------
Change in net assets from capital transactions (1,241,605) (10,130,283)
------------- -------------
Net increase (decrease) in net assets 15,842,558 (8,139,032)
NET ASSETS:
Beginning of period 109,928,077 118,067,109
------------- -------------
End of period $ 125,770,635 $ 109,928,077
============= =============
Undistributed net investment loss $ (328,335) $ --
============= =============
SHARE TRANSACTIONS:
Issued 866,076 6,135,280
Reinvested 158,873 1,240,365
Redeemed (1,169,496) (8,254,491)
------------- -------------
Change in shares from capital transactions (144,547) (878,846)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
31
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK SMALL CAP GROWTH FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
---------------- ------------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment loss $ (70,367) $ (178,410)
Net realized gains from investment transactions 769,172 3,703,428
Net change in unrealized appreciation (depreciation)
on investments 936,654 (1,413,499)
------------ ------------
Change in net assets from operations 1,635,459 2,111,519
------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (1,942,958) (1,256,803)
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (922,615) (925,783)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (14,324) (32,395)
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (8,748) (3,485)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (58,989) (8,473)
------------ ------------
Change in net assets from shareholder distributions (2,947,634) (2,226,939)
------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 1,557,196 3,442,173
Dividends reinvested 2,776,551 2,009,230
Cost of shares redeemed (2,817,398) (11,564,249)
------------ ------------
Change in net assets from capital transactions 1,516,349 (6,112,846)
------------ ------------
Net increase (decrease) in net assets 204,174 (6,228,266)
NET ASSETS:
Beginning of period 12,119,687 18,347,953
------------ ------------
End of period $ 12,323,861 $ 12,119,687
============ ============
Undistributed net investment loss $ (70,367) $ --
============ ============
SHARE TRANSACTIONS:
Issued 137,478 259,097
Reinvested 266,407 153,486
Redeemed (230,229) (842,127)
------------ ------------
Change in shares from capital transactions 173,656 (429,544)
============ ============
SEE NOTES TO FINANCIAL STATEMENTS.
32
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK ENTERPRISE FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
---------------- ------------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment loss $ (217,791) $ (325,837)
Net realized gains from investment transactions 17,517,721 40,499,861
Net change in unrealized appreciation (depreciation)
on investments 26,328,896 13,660,780
------------- -------------
Change in net assets from operations 43,628,826 53,834,804
------------- -------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (1,714,562) (208,822)
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (3,431,576) (1,038,199)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (106,524) (6,851)
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (6,999) (256)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (37,704,987) (13,287,687)
------------- -------------
Change in net assets from shareholder distributions (42,964,648) (14,541,815)
------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 24,139,902 32,012,787
Dividends reinvested 38,814,292 13,257,456
Cost of shares redeemed (38,541,957) (89,251,428)
------------- -------------
Change in net assets from capital transactions 24,412,237 (43,981,185)
------------- -------------
Net increase (decrease) in net assets 25,076,415 (4,688,196)
NET ASSETS:
Beginning of period 370,910,073 375,598,269
------------- -------------
End of period $ 395,986,488 $ 370,910,073
============= =============
Undistributed net investment loss $ (217,791) $ --
============= =============
SHARE TRANSACTIONS:
Issued 958,837 1,293,578
Reinvested 1,675,630 529,664
Redeemed (1,541,616) (3,608,846)
------------- -------------
Change in shares from capital transactions 1,092,851 (1,785,604)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
33
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK ENTERPRISE SMALL CAP FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
---------------- ------------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment loss $ (149,713) $ (409,112)
Net realized gains from investment transactions 4,441,075 10,480,520
Net change in unrealized appreciation (depreciation)
on investments 7,257,136 (3,562,811)
------------ ------------
Change in net assets from operations 11,548,498 6,508,597
------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (446,947) (194,897)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (95,246) (14,189)
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (2,727) (954)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income -- --
From net realized gains from investment
transactions (10,203,875) (5,513,501)
------------ ------------
Change in net assets from shareholder distributions (10,748,795) (5,723,541)
------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 1,972,645 5,310,425
Dividends reinvested 10,265,969 5,442,642
Cost of shares redeemed (9,365,823) (16,317,105)
------------ ------------
Change in net assets from capital transactions 2,872,791 (5,564,038)
------------ ------------
Net increase (decrease) in net assets 3,672,494 (4,778,982)
NET ASSETS:
Beginning of period 71,355,531 76,134,513
------------ ------------
End of period $ 75,028,025 $ 71,355,531
============ ============
Undistributed net investment loss $ (149,713) $ --
============ ============
SHARE TRANSACTIONS:
Issued 63,150 161,158
Reinvested 365,085 162,672
Redeemed (302,316) (499,637)
------------ ------------
Change in shares from capital transactions 125,919 (175,807)
============ ============
SEE NOTES TO FINANCIAL STATEMENTS.
34
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK VALUE FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
---------------- ------------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 2,331,542 $ 5,897,185
Net realized gains from investment transactions 21,791,548 64,773,465
Net change in unrealized appreciation (depreciation)
on investments (8,184,452) (28,299,097)
------------- -------------
Change in net assets from operations 15,938,638 42,371,553
------------- -------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income (25,171) (7,769)
From net realized gains from investment
transactions (346,127) (73,980)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income (127) (141)
From net realized gains from investment
transactions (4,337) (1,686)
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income (31) (22)
From net realized gains from investment
transactions (571) (289)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income (4,711,754) (3,745,160)
From net realized gains from investment
transactions (54,587,535) (31,919,232)
------------- -------------
Change in net assets from shareholder distributions (59,675,653) (35,748,279)
------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 8,145,209 16,341,869
Dividends reinvested 57,708,479 34,504,754
Cost of shares redeemed (78,277,004) (68,101,029)
------------- -------------
Change in net assets from capital transactions (12,423,316) (17,254,406)
------------- -------------
Net decrease in net assets (56,160,331) (10,631,132)
NET ASSETS:
Beginning of period 369,117,589 379,748,721
------------- -------------
End of period $ 312,957,258 $ 369,117,589
============= =============
Undistributed net investment income $ 2,180,998 $ 4,586,539
============= =============
SHARE TRANSACTIONS:
Issued 198,474 357,641
Reinvested 1,481,233 763,547
Redeemed (1,916,526) (1,487,507)
------------- -------------
Change in shares from capital transactions (236,819) (366,319)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
35
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets (cont.)
- --------------------------------------------------------------------------------
TAMARACK MICROCAP VALUE FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
---------------- ------------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 110,529 $ 520,830
Net realized gains from investment transactions 6,039,571 21,614,084
Net change in unrealized appreciation (depreciation)
on investments 27,256,644 20,104,548
------------- -------------
Change in net assets from operations 33,406,744 42,239,462
------------- -------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income (22,835) (27,578)
From net realized gains from investment
transactions (998,432) (150,110)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income -- (1,245)
From net realized gains from investment
transactions (48,522) (9,558)
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income -- (566)
From net realized gains from investment
transactions (8,965) (4,090)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income (815,624) (1,789,975)
From net realized gains from investment
transactions (19,223,939) (8,941,477)
------------- -------------
Change in net assets from shareholder distributions (21,118,317) (10,924,599)
------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 20,640,555 32,381,048
Dividends reinvested 19,966,985 10,491,788
Cost of shares redeemed (35,475,467) (50,952,792)
------------- -------------
Change in net assets from capital transactions 5,132,073 (8,079,956)
------------- -------------
Net increase in net assets 17,420,500 23,234,907
NET ASSETS:
Beginning of period 243,888,933 220,654,026
------------- -------------
End of period $ 261,309,433 $ 243,888,933
============= =============
Undistributed net investment loss $ (804,474) ($ 76,544)
============= =============
SHARE TRANSACTIONS:
Issued 969,481 1,589,626
Reinvested 993,498 519,674
Redeemed (1,676,754) (2,512,164)
------------- -------------
Change in shares from capital transactions 286,225 (402,864)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
36
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Large Cap Growth Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES
--------------------------------------
NET REALIZED
AND
NET ASSET NET UNREALIZED
VALUE, INVESTMENT GAINS TOTAL FROM
BEGINNING INCOME (LOSSES) ON INVESTMENT
OF PERIOD (LOSS) INVESTMENTS ACTIVITIES
--------- ---------- ------------- ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 10.65 (0.01) 0.62 0.61
Year Ended September 30, 2005 9.88 0.01 0.76 0.77
Period Ended September 30, 2004 (e) 10.02 (0.01) (0.13) (0.14)
Year Ended April 30, 2004 8.33 (0.07) 1.76 1.69
Year Ended April 30, 2003 9.87 -- (1.53) (1.53)
Year Ended April 30, 2002 12.02 (0.02) (2.13) (2.15)
Year Ended April 30, 2001 15.56 (0.04) (2.55) (2.59)
CLASS I
Six Months Ended March 31, 2006 (Unaudited) $ 10.75 (0.01) 0.64 0.63
Year Ended September 30, 2005 9.97 0.05 0.75 0.80
Period Ended September 30, 2004 (e) 10.11 (a) (0.14) (0.14)
Year Ended April 30, 2004 8.38 (0.07) 1.80 1.73
Year Ended April 30, 2003 9.92 0.03 (1.55) (1.52)
Year Ended April 30, 2002 12.07 0.02 (2.15) (2.13)
Year Ended April 30, 2001 15.57 (a) (2.55) (2.55)
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 10.53 (0.05) 0.62 0.57
Year Ended September 30, 2005 9.85 (0.02) 0.70 0.68
Period Ended September 30, 2004 (e) 10.02 (0.04) (0.13) (0.17)
Period Ended April 30, 2004 (f) 10.28 -- (0.26) (0.26)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 10.60 (0.03) 0.63 0.60
Year Ended September 30, 2005 9.87 (0.15) 0.89 0.74
Period Ended September 30, 2004 (e) 10.02 -- (0.15) (0.15)
Period Ended April 30, 2004 (f) 10.28 -- (0.26) (0.26)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 10.75 (a) 0.63 0.63
Year Ended September 30, 2005 9.97 0.02 0.78 0.80
Period Ended September 30, 2004 (e) 10.11 -- (0.14) (0.14)
Period Ended April 30, 2004 (f) 10.37 -- (0.26) (0.26)
DISTRIBUTIONS
-----------------------------------------------------
NET ASSET
NET NET VALUE,
INVESTMENT RETURN REALIZED TOTAL END OF TOTAL
INCOME OF CAPITAL GAINS DISTRIBUTIONS PERIOD RETURN*
---------- ---------- -------- ------------- --------- -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) -- -- -- -- $ 11.26 5.73%(b)
Year Ended September 30, 2005 -- -- -- -- 10.65 7.79%
Period Ended September 30, 2004 (e) -- -- -- -- 9.88 (1.40%)(b)
Year Ended April 30, 2004 -- -- -- -- 10.02 20.29%
Year Ended April 30, 2003 (0.01) -- -- (0.01) 8.33 (15.53%)
Year Ended April 30, 2002 (a) (a) -- -- 9.87 (17.87%)
Year Ended April 30, 2001 -- -- (0.95) (0.95) 12.02 (17.24%)
CLASS I
Six Months Ended March 31, 2006 (Unaudited) (a) -- -- -- $ 11.38 5.91%(b)
Year Ended September 30, 2005 (0.02) -- -- (0.02) 10.75 8.04%
Period Ended September 30, 2004 (e) -- -- -- -- 9.97 (1.38%)(b)
Year Ended April 30, 2004 -- -- -- -- 10.11 20.64%
Year Ended April 30, 2003 (0.02) -- -- (0.02) 8.38 (15.34%)
Year Ended April 30, 2002 (0.01) (0.01) -- (0.02) 9.92 (17.71%)
Year Ended April 30, 2001 (a) -- (0.95) (0.95) 12.07 (16.96%)
CLASS C
Six Months Ended March 31, 2006 (Unaudited) -- -- -- -- $ 11.10 5.41%(b)
Year Ended September 30, 2005 -- -- -- -- 10.53 6.90%
Period Ended September 30, 2004 (e) -- -- -- -- 9.85 (1.70%)(b)
Period Ended April 30, 2004 (f) -- -- -- -- 10.02 (2.53%)(b)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) -- -- -- -- $ 11.20 5.66%(b)
Year Ended September 30, 2005 (0.01) -- -- (0.01) 10.60 7.46%
Period Ended September 30, 2004 (e) -- -- -- -- 9.87 (1.50%)(b)
Period Ended April 30, 2004 (f) -- -- -- -- 10.02 (2.53%)(b)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) (a) -- -- -- $ 11.38 5.91%(b)
Year Ended September 30, 2005 (0.02) -- -- (0.02) 10.75 8.04%
Period Ended September 30, 2004 (e) -- -- -- -- 9.97 (1.38%)(b)
Period Ended April 30, 2004 (f) -- -- -- -- 10.11 (2.51%)(b)
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIO OF NET
INVESTMENT
NET ASSETS, RATIO OF INCOME RATIO OF
END OF EXPENSES TO (LOSS) TO EXPENSES TO
PERIOD AVERAGE AVERAGE AVERAGE PORTFOLIO
(000'S) NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
----------- ----------- ------------- ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 5,710 1.25%(c) (0.29%)(c) 1.72%(c) 15%
Year Ended September 30, 2005 6,280 1.15% 0.06% 1.74% 28%
Period Ended September 30, 2004 (e) 10,614 1.10%(c) (0.27%)(c) 1.63%(c) 16%
Year Ended April 30, 2004 10,864 1.54% (0.85%) 1.79% 264%
Year Ended April 30, 2003 7,686 1.46% (0.07%) 1.71% 90%
Year Ended April 30, 2002 9,906 1.34% (0.14%) 1.59% 33%
Year Ended April 30, 2001 14,126 1.25% (0.28%) 1.50% 31%
CLASS I
Six Months Ended March 31, 2006 (Unaudited) $ 1,640 1.00%(c) (0.12%)(c) 1.22%(c) 15%
Year Ended September 30, 2005 3,636 0.89% 0.35% 1.22% 28%
Period Ended September 30, 2004 (e) 19,556 0.85%(c) (0.03%)(c) 1.11%(c) 16%
Year Ended April 30, 2004 28,454 1.29% (0.60%) 1.29% 264%
Year Ended April 30, 2003 35,379 1.21% 0.20% (d) 90%
Year Ended April 30, 2002 64,516 1.09% 0.11% (d) 33%
Year Ended April 30, 2001 149,839 1.00% (0.03%) (d) 31%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 26 2.00%(c) (1.04%)(c) 2.23%(c) 15%
Year Ended September 30, 2005 25 1.93% (0.88%) 2.26% 28%
Period Ended September 30, 2004 (e) 3 1.81%(c) (0.98%)(c) 2.13%(c) 16%
Period Ended April 30, 2004 (f) 3 1.88%(c) (1.15%)(c) (d) 264%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 10 1.50%(c) (0.57%)(c) 1.70%(c) 15%
Year Ended September 30, 2005 15 1.41% (0.27%) 1.75% 28%
Period Ended September 30, 2004 (e) 65 1.34%(c) 0.12%(c) 2.00%(c) 16%
Period Ended April 30, 2004 (f) 3 1.32%(c) (0.63%)(c) (d) 264%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 138,155 1.00%(c) (0.04%)(c) 1.22%(c) 15%
Year Ended September 30, 2005 145,649 0.91% 0.24% 1.25% 28%
Period Ended September 30, 2004 (e) 168,756 0.85%(c) (0.02%)(c) 1.13%(c) 16%
Period Ended April 30, 2004 (f) 190,737 0.85%(c) (0.27%)(c) (d) 264%
* Excludes sales charge.
** During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio
would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Less than $0.01 per share.
(b) Not annualized.
(c) Annualized.
(d) There were no waivers or reimbursements during the period.
(e) For the period from May 1, 2004 to September 30, 2004.
(f) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
37
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Mid Cap Growth Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES
--------------------------------------
NET REALIZED
AND
NET ASSET NET UNREALIZED
VALUE, INVESTMENT GAINS TOTAL FROM
BEGINNING INCOME (LOSSES) ON INVESTMENT
OF PERIOD (LOSS) INVESTMENTS ACTIVITIES
--------- ---------- ------------ ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 11.71 (0.05) 2.16 2.11
Year Ended September 30, 2005 11.57 (0.14) 1.86 1.72
Period Ended September 30, 2004 (d) 12.17 (0.04) (0.56) (0.60)
Year Ended April 30, 2004 9.46 (0.08) 2.79 2.71
Year Ended April 30, 2003 11.73 (0.03) (2.15) (2.18)
Year Ended April 30, 2002 11.99 (0.01) 0.67 0.66
Year Ended April 30, 2001 14.02 0.01 0.98 0.99
CLASS I
Six Months Ended March 31, 2006 (Unaudited) $ 12.03 (0.03) 2.21 2.18
Year Ended September 30, 2005 11.81 (0.04) 1.84 1.80
Period Ended September 30, 2004 (d) 12.41 (0.04) (0.56) (0.60)
Year Ended April 30, 2004 9.62 (0.08) 2.87 2.79
Year Ended April 30, 2003 11.91 (0.01) (2.19) (2.20)
Year Ended April 30, 2002 12.13 0.01 0.69 0.70
Year Ended April 30, 2001 14.14 0.04 0.99 1.03
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 11.59 (0.09) 2.12 2.03
Year Ended September 30, 2005 11.53 (0.11) 1.75 1.64
Period Ended September 30, 2004 (d) 12.16 (0.05) (0.58) (0.63)
Period Ended April 30, 2004 (e) 12.51 -- (0.35) (0.35)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 11.67 (0.08) 2.16 2.08
Year Ended September 30, 2005 11.55 (0.30) 2.00 1.70
Period Ended September 30, 2004 (d) 12.17 (0.01) (0.61) (0.62)
Period Ended April 30, 2004 (e) 12.51 -- (0.34) (0.34)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 12.03 (0.03) 2.22 2.19
Year Ended September 30, 2005 11.81 (0.02) 1.82 1.80
Period Ended September 30, 2004 (d) 12.41 (0.01) (0.59) (0.60)
Period Ended April 30, 2004 (e) 12.76 -- (0.35) (0.35)
RATIOS/SUPPLE
MENTAL
DISTRIBUTIONS DATA
------------------------------------- -------------
NET ASSET NET ASSETS,
NET NET VALUE, END OF
INVESTMENT REALIZED TOTAL END OF TOTAL PERIOD
INCOME GAINS DISTRIBUTIONS PERIOD RETURN* (000'S)
---------- -------- ------------- --------- ----------- -------------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) -- (0.23) (0.23) $ 13.59 18.17%(a) $ 48,549
Year Ended September 30, 2005 -- (1.58) (1.58) 11.71 15.62% 45,359
Period Ended September 30, 2004 (d) -- -- -- 11.57 (4.93%)(a) 69,979
Year Ended April 30, 2004 -- -- -- 12.17 28.65% 74,150
Year Ended April 30, 2003 -- (0.09) (0.09) 9.46 (18.58%) 48,806
Year Ended April 30, 2002 (0.01) (0.91) (0.92) 11.73 5.99% 55,143
Year Ended April 30, 2001 (0.01) (3.01) (3.02) 11.99 5.92% 28,312
CLASS I
Six Months Ended March 31, 2006 (Unaudited) -- (0.23) (0.23) $ 13.98 18.27%(a) $ 74,951
Year Ended September 30, 2005 -- (1.58) (1.58) 12.03 16.02% 62,652
Period Ended September 30, 2004 (d) -- -- -- 11.81 (4.83%)(a) 47,778
Year Ended April 30, 2004 -- -- -- 12.41 29.00% 66,039
Year Ended April 30, 2003 -- (0.09) (0.09) 9.62 (18.46%) 94,472
Year Ended April 30, 2002 (0.01) (0.91) (0.92) 11.91 6.34% 115,032
Year Ended April 30, 2001 (0.03) (3.01) (3.04) 12.13 6.17% 120,842
CLASS C
Six Months Ended March 31, 2006 (Unaudited) -- (0.23) (0.23) $ 13.39 17.66%(a) $ 431
Year Ended September 30, 2005 -- (1.58) (1.58) 11.59 14.91% 370
Period Ended September 30, 2004 (d) -- -- -- 11.53 (5.18%)(a) 13
Period Ended April 30, 2004 (e) -- -- -- 12.16 (2.80%)(a) 3
CLASS R
Six Months Ended March 31, 2006 (Unaudited) -- (0.23) (0.23) $ 13.52 17.98%(a) $ 11
Year Ended September 30, 2005 -- (1.58) (1.58) 11.67 15.47% 32
Period Ended September 30, 2004 (d) -- -- -- 11.55 (5.09%)(a) 72
Period Ended April 30, 2004 (e) -- -- -- 12.17 (2.72%)(a) 3
CLASS S
Six Months Ended March 31, 2006 (Unaudited) -- (0.23) (0.23) $ 13.99 18.35%(a) $ 1,829
Year Ended September 30, 2005 -- (1.58) (1.58) 12.03 16.02% 1,515
Period Ended September 30, 2004 (d) -- -- -- 11.81 (4.83%)(a) 225
Period Ended April 30, 2004 (e) -- -- -- 12.41 (2.74%)(a) 4
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIO OF NET
INVESTMENT
RATIO OF INCOME RATIO OF
EXPENSES TO (LOSS) TO EXPENSES TO
AVERAGE AVERAGE AVERAGE PORTFOLIO
NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
----------- ------------ ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) 1.35%(b) (0.71%)(b) 1.73%(b) 11%
Year Ended September 30, 2005 1.32% (0.80%) 1.75% 22%
Period Ended September 30, 2004 (d) 1.27%(b) (0.88%)(b) 1.58%(b) 15%
Year Ended April 30, 2004 1.38% (0.78%) 1.64% 93%
Year Ended April 30, 2003 1.40% (0.37%) 1.65% 28%
Year Ended April 30, 2002 1.37% (0.22%) 1.62% 19%
Year Ended April 30, 2001 1.31% 0.09% 1.56% 66%
CLASS I
Six Months Ended March 31, 2006 (Unaudited) 1.10%(b) (0.47%)(b) 1.23%(b) 11%
Year Ended September 30, 2005 1.07% (0.54%) 1.25% 22%
Period Ended September 30, 2004 (d) 1.02%(b) (0.62%)(b) 1.07%(b) 15%
Year Ended April 30, 2004 1.15% (0.50%) 1.16% 93%
Year Ended April 30, 2003 1.15% (0.12%) (c) 28%
Year Ended April 30, 2002 1.12% 0.10% (c) 19%
Year Ended April 30, 2001 1.06% 0.35% (c) 66%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) 2.10%(b) (1.47%)(b) 2.23%(b) 11%
Year Ended September 30, 2005 2.09% (1.53%) 2.28% 22%
Period Ended September 30, 2004 (d) 2.02%(b) (1.65%)(b) 2.12%(b) 15%
Period Ended April 30, 2004 (e) 1.28%(b) (1.01%)(b) (c) 93%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) 1.60%(b) (1.01%)(b) 1.74%(b) 11%
Year Ended September 30, 2005 1.57% (1.04%) 1.76% 22%
Period Ended September 30, 2004 (d) 1.52%(b) (1.20%)(b) 1.78%(b) 15%
Period Ended April 30, 2004 (e) 0.79%(b) (0.56%)(b) (c) 93%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) 1.10%(b) (0.47%)(b) 1.23%(b) 11%
Year Ended September 30, 2005 1.08% (0.52%) 1.27% 22%
Period Ended September 30, 2004 (d) 1.03%(b) (0.71%)(b) 1.15%(b) 15%
Period Ended April 30, 2004 (e) 0.25%(b) (0.06%)(b) (c) 93%
* Excludes sales charge.
** During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio
would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from May 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
38
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Small Cap Growth Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES
-------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED
VALUE, NET GAINS TOTAL FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT
OF PERIOD LOSS INVESTMENTS ACTIVITIES
--------- ---------- ----------- ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 13.51 (0.07) 1.67 1.60
Year Ended September 30, 2005 13.78 (0.19) 2.11 1.92
Period Ended September 30, 2004 (d) 13.19 (0.07) 0.66 0.59
Year Ended April 30, 2004 10.11 (0.15) 3.23 3.08
Year Ended April 30, 2003 12.32 (0.12) (2.09) (2.21)
Year Ended April 30, 2002 11.56 (0.11) 1.04 0.93
Year Ended April 30, 2001 12.50 (0.11) 0.08 (0.03)
CLASS I
Six Months Ended March 31, 2006 (Unaudited) $ 13.81 (0.06) 1.72 1.66
Year Ended September 30, 2005 14.01 (0.21) 2.20 1.99
Period Ended September 30, 2004 (d) 13.40 (0.08) 0.69 0.61
Year Ended April 30, 2004 10.25 (0.17) 3.32 3.15
Year Ended April 30, 2003 12.45 (0.09) (2.11) (2.20)
Year Ended April 30, 2002 11.66 (0.07) 1.03 0.96
Year Ended April 30, 2001 12.57 (0.06) 0.06 --
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 13.34 (0.12) 1.65 1.53
Year Ended September 30, 2005 13.74 (1.00) 2.79 1.79
Period Ended September 30, 2004 (d) 13.19 (0.09) 0.64 0.55
Period Ended April 30, 2004 (e) 13.63 (0.02) (0.42) (0.44)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 13.44 (0.08) 1.66 1.58
Year Ended September 30, 2005 13.76 (0.17) 2.04 1.87
Period Ended September 30, 2004 (d) 13.19 (0.02) 0.59 0.57
Period Ended April 30, 2004 (e) 13.63 (0.02) (0.42) (0.44)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 13.80 (0.04) 1.70 1.66
Year Ended September 30, 2005 14.01 (0.08) 2.06 1.98
Period Ended September 30, 2004 (d) 13.40 (0.02) 0.63 0.61
Period Ended April 30, 2004 (e) 13.84 (0.02) (0.42) (0.44)
DISTRIBUTIONS
-------------------------------------
NET ASSET
NET NET VALUE,
INVESTMENT REALIZED TOTAL END OF TOTAL
INCOME GAINS DISTRIBUTIONS PERIOD RETURN*
---------- -------- ------------- --------- -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) -- (3.66) (3.66) $ 11.45 14.74%(a)
Year Ended September 30, 2005 -- (2.19) (2.19) 13.51 14.56%
Period Ended September 30, 2004 (d) -- -- -- 13.78 4.47%(a)
Year Ended April 30, 2004 -- -- -- 13.19 30.46%
Year Ended April 30, 2003 -- -- -- 10.11 (17.94%)
Year Ended April 30, 2002 -- (0.17) (0.17) 12.32 8.17%
Year Ended April 30, 2001 -- (0.91) (0.91) 11.56 (0.43%)
CLASS I
Six Months Ended March 31, 2006 (Unaudited) -- (3.66) (3.66) $ 11.81 14.87%(a)
Year Ended September 30, 2005 -- (2.19) (2.19) 13.81 14.85%
Period Ended September 30, 2004 (d) -- -- -- 14.01 4.55%(a)
Year Ended April 30, 2004 -- -- -- 13.40 30.73%
Year Ended April 30, 2003 -- -- -- 10.25 (17.67%)
Year Ended April 30, 2002 -- (0.17) (0.17) 12.45 8.36%
Year Ended April 30, 2001 -- (0.91) (0.91) 11.66 (0.17%)
CLASS C
Six Months Ended March 31, 2006 (Unaudited) -- (3.66) (3.66) $ 11.21 14.32%(a)
Year Ended September 30, 2005 -- (2.19) (2.19) 13.34 13.55%
Period Ended September 30, 2004 (d) -- -- -- 13.74 4.17%(a)
Period Ended April 30, 2004 (e) -- -- -- 13.19 (3.23%)(a)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) -- (3.66) (3.66) $ 11.36 14.66%(a)
Year Ended September 30, 2005 -- (2.19) (2.19) 13.44 14.18%
Period Ended September 30, 2004 (d) -- -- -- 13.76 4.32%(a)
Period Ended April 30, 2004 (e) -- -- -- 13.19 (3.23%)(a)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) -- (3.66) (3.66) $ 11.80 14.88%(a)
Year Ended September 30, 2005 -- (2.19) (2.19) 13.80 14.77%
Period Ended September 30, 2004 (d) -- -- -- 14.01 4.55%(a)
Period Ended April 30, 2004 (e) -- -- -- 13.40 (3.18%)(a)
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIO OF NET
NET ASSETS, RATIO OF INVESTMENT RATIO OF
END OF EXPENSES TO LOSS EXPENSES TO
PERIOD AVERAGE TO AVERAGE AVERAGE PORTFOLIO
(000'S) NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
----------- ----------- ------------- ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 7,483 1.68%(b) (1.29%)(b) 3.08%(b) 10%
Year Ended September 30, 2005 7,476 1.68% (1.34%) 2.80% 23%
Period Ended September 30, 2004 (d) 8,140 1.68%(b) (1.28%)(b) 2.76%(b) 11%
Year Ended April 30, 2004 7,488 1.81% (1.52%) 2.06% 40%
Year Ended April 30, 2003 4,359 1.70% (1.12%) 1.95% 120%
Year Ended April 30, 2002 6,069 1.61% (0.99%) 1.86% 31%
Year Ended April 30, 2001 5,870 1.49% (0.85%) 1.74% 71%
CLASS I
Six Months Ended March 31, 2006 (Unaudited) $ 4,416 1.43%(b) (1.04%)(b) 2.61%(b) 10%
Year Ended September 30, 2005 4,363 1.43% (1.10%) 2.26% 23%
Period Ended September 30, 2004 (d) 9,952 1.43%(b) (1.04%)(b) 2.13%(b) 11%
Year Ended April 30, 2004 14,094 1.55% (1.23%) (c) 40%
Year Ended April 30, 2003 16,621 1.45% (0.87%) (c) 120%
Year Ended April 30, 2002 19,113 1.36% (0.72%) (c) 31%
Year Ended April 30, 2001 22,877 1.24% (0.60%) (c) 71%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 51 2.43%(b) (2.05%)(b) 3.61%(b) 10%
Year Ended September 30, 2005 54 2.43% (2.11%) 3.26% 23%
Period Ended September 30, 2004 (d) 214 2.43%(b) (2.01%)(b) 3.39%(b) 11%
Period Ended April 30, 2004 (e) 3 2.49%(b) (5.27%)(b) (c) 40%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 38 1.93%(b) (1.47%)(b) 3.11%(b) 10%
Year Ended September 30, 2005 70 1.93% (1.60%) 2.89% 23%
Period Ended September 30, 2004 (d) 22 1.93%(b) (1.48%)(b) 3.22%(b) 11%
Period Ended April 30, 2004 (e) 5 1.94%(b) (5.14%)(b) (c) 40%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 336 1.43%(b) (1.03%)(b) 2.62%(b) 10%
Year Ended September 30, 2005 156 1.43% (1.07%) 2.45% 23%
Period Ended September 30, 2004 (d) 21 1.42%(b) (0.94%)(b) 3.19%(b) 11%
Period Ended April 30, 2004 (e) 3 1.47%(b) (4.34%)(b) (c) 40%
* Excludes sales charge.
** During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio
would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from May 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
39
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Enterprise Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES
--------------------------------------
NET REALIZED
AND
NET ASSET NET UNREALIZED
VALUE, INVESTMENT GAINS TOTAL FROM
BEGINNING INCOME (LOSSES) ON INVESTMENT
OF PERIOD (LOSS) INVESTMENTS ACTIVITIES
--------- ---------- ------------ ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 26.46 (0.04) 2.83 2.79
Year Ended September 30, 2005 23.81 (0.06) 3.66 3.60
Period Ended September 30, 2004 (d) 23.89 (0.02) (0.06) (0.08)
Period Ended June 30, 2004 (e) 24.01 -- (0.12) (0.12)
CLASS I
Six Months Ended March 31, 2006 (Unaudited) $ 26.57 (0.01) 2.85 2.84
Year Ended September 30, 2005 23.85 (0.02) 3.69 3.67
Period Ended September 30, 2004 (f) 23.85 -- -- --
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 26.17 (0.09) 2.75 2.66
Year Ended September 30, 2005 23.74 (0.15) 3.53 3.38
Period Ended September 30, 2004 (d) 23.85 (0.04) (0.07) (0.11)
Period Ended June 30, 2004 (e) 24.01 (0.01) (0.15) (0.16)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 26.35 (0.08) 2.83 2.75
Year Ended September 30, 2005 23.78 (0.12) 3.64 3.52
Period Ended September 30, 2004 (d) 23.87 (0.02) (0.07) (0.09)
Period Ended June 30, 2004 (e) 24.01 (0.02) (0.12) (0.14)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 26.56 (0.01) 2.86 2.85
Year Ended September 30, 2005 23.85 (0.02) 3.68 3.66
Period Ended September 30, 2004 (d) 23.91 (0.01) (0.05) (0.06)
Year Ended June 30, 2004 (g) 17.66 (0.02) 6.27 6.25
Year Ended June 30, 2003 17.98 0.04 (0.31) (0.27)
Year Ended June 30, 2002 15.24 0.02 3.08 3.10
Year Ended June 30, 2001 13.82 0.03 2.46 2.49
RATIOS/SUPPLE
MENTAL
DISTRIBUTIONS DATA
------------------------------------- -------------
NET ASSET NET ASSETS,
NET NET VALUE, END OF
INVESTMENT REALIZED TOTAL END OF TOTAL PERIOD
INCOME GAINS DISTRIBUTIONS PERIOD RETURN* (000'S)
---------- -------- ------------- --------- ----------- -------------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) -- (3.10) (3.10) $ 26.15 12.13%(a) $ 16,604
Year Ended September 30, 2005 -- (0.95) (0.95) 26.46 15.34% 12,856
Period Ended September 30, 2004 (d) -- -- -- 23.81 (0.33%)(a) 3,359
Period Ended June 30, 2004 (e) -- -- -- 23.89 (0.50%)(a) 1,872
CLASS I
Six Months Ended March 31, 2006 (Unaudited) -- (3.10) (3.10) $ 26.31 12.28%(a) $ 33,438
Year Ended September 30, 2005 -- (0.95) (0.95) 26.57 15.61% 29,554
Period Ended September 30, 2004 (f) -- -- -- 23.85 0.00%(a) 26,707
CLASS C
Six Months Ended March 31, 2006 (Unaudited) -- (3.10) (3.10) $ 25.73 11.75%(a) $ 1,552
Year Ended September 30, 2005 -- (0.95) (0.95) 26.17 14.43% 801
Period Ended September 30, 2004 (d) -- -- -- 23.74 (0.46%)(a) 75
Period Ended June 30, 2004 (e) -- -- -- 23.85 (0.67%)(a) 23
CLASS R
Six Months Ended March 31, 2006 (Unaudited) -- (3.10) (3.10) $ 26.00 12.03%(a) $ 54
Year Ended September 30, 2005 -- (0.95) (0.95) 26.35 15.01% 59
Period Ended September 30, 2004 (d) -- -- -- 23.78 (0.38%)(a) 6
Period Ended June 30, 2004 (e) -- -- -- 23.87 (0.58%)(a) 3
CLASS S
Six Months Ended March 31, 2006 (Unaudited) -- (3.10) (3.10) $ 26.31 12.33%(a) $344,338
Year Ended September 30, 2005 -- (0.95) (0.95) 26.56 15.57% 327,641
Period Ended September 30, 2004 (d) -- -- -- 23.85 (0.21%)(a) 345,451
Year Ended June 30, 2004 (G) -- -- -- 23.91 35.35% 365,930
Year Ended June 30, 2003 (0.03) (0.02) (0.05) 17.66 (1.48%) 208,651
Year Ended June 30, 2002 (0.05) (0.31) (0.36) 17.98 20.82% 370,351
Year Ended June 30, 2001 (0.02) (1.05) (1.07) 15.24 20.08% 136,726
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIO OF NET
INVESTMENT
RATIO OF INCOME RATIO OF
EXPENSES TO (LOSS) TO EXPENSES TO
AVERAGE AVERAGE AVERAGE PORTFOLIO
NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
----------- ------------ ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) 1.33%(b) (0.36%)(b) 1.79%(b) 13%
Year Ended September 30, 2005 1.33% (0.29%) 1.88% 33%
Period Ended September 30, 2004 (d) 1.33%(b) (0.35%)(b) 1.73%(b) 7%
Period Ended June 30, 2004 (e) 1.33%(b) (0.07%)(b) 1.72%(b) 28%
CLASS I
Six Months Ended March 31, 2006 (Unaudited) 1.08%(b) (0.10%)(b) 1.29%(b) 13%
Year Ended September 30, 2005 1.08% (0.08%) 1.36% 33%
Period Ended September 30, 2004 (f) 0.00% 0.00% 0.00% 7%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) 2.08%(b) (1.10%)(b) 2.29%(b) 13%
Year Ended September 30, 2005 2.08% (1.01%) 2.39% 33%
Period Ended September 30, 2004 (d) 2.08%(b) (1.09%)(b) 2.25%(b) 7%
Period Ended June 30, 2004 (e) 2.07%(b) (0.67%)(b) 2.22%(b) 28%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) 1.58%(b) (0.61%)(b) 1.79%(b) 13%
Year Ended September 30, 2005 1.58% (0.54%) 1.88% 33%
Period Ended September 30, 2004 (d) 1.57%(b) (0.61%)(b) 1.77%(b) 7%
Period Ended June 30, 2004 (e) 1.54%(b) (0.38%)(b) 1.61%(b) 28%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) 1.08%(b) (0.11%)(b) 1.29%(b) 13%
Year Ended September 30, 2005 1.08% (0.08%) 1.36% 33%
Period Ended September 30, 2004 (d) 1.08%(b) (0.12%)(b) 1.21%(b) 7%
Year Ended June 30, 2004 (G) 1.08% (0.09%) 1.22% 28%
Year Ended June 30, 2003 1.08% 0.21% 1.14% 13%
Year Ended June 30, 2002 1.08% 0.04% (c) 93%
Year Ended June 30, 2001 1.15% 0.25% (c) 55%
* Excludes sales charge.
** During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio
would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June 30,
2004.
(f) For the period from September 30, 2004 (commencement of operations) to
September 30, 2004.
(g) The existing class of shares was designated Class S shares as of April 19,
2004.
SEE NOTES TO FINANCIAL STATEMENTS.
40
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Enterprise Small Cap Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES
--------------------------------------
NET REALIZED
AND
NET ASSET NET UNREALIZED
VALUE, INVESTMENT GAINS TOTAL FROM
BEGINNING INCOME (LOSSES) ON INVESTMENT
OF PERIOD (LOSS) INVESTMENTS ACTIVITIES
--------- ---------- ------------ ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 32.96 (0.10) 4.93 4.83
Year Ended September 30, 2005 32.59 (0.24) 3.10 2.86
Period Ended September 30, 2004 (d) 32.69 (0.05) (0.05) (0.10)
Period Ended June 30, 2004 (e) 32.36 (0.03) 0.36 0.33
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 32.59 (0.24) 4.87 4.63
Year Ended September 30, 2005 32.47 (0.24) 2.85 2.61
Period Ended September 30, 2004 (d) 32.63 (0.12) (0.04) (0.16)
Period Ended June 30, 2004 (e) 32.36 (0.06) 0.33 0.27
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 32.81 (0.15) 4.91 4.76
Year Ended September 30, 2005 32.54 (0.28) 3.04 2.76
Period Ended September 30, 2004 (d) 32.66 (0.08) (0.04) (0.12)
Period Ended June 30, 2004 (e) 32.36 (0.06) 0.36 0.30
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 33.06 (0.06) 4.96 4.90
Year Ended September 30, 2005 32.62 (0.19) 3.12 2.93
Period Ended September 30, 2004 (d) 32.70 (0.05) (0.03) (0.08)
Year Ended June 30, 2004 (f) 23.78 (0.14) 9.06 8.92
Year Ended June 30, 2003 25.62 (0.04) (1.29) (1.33)
Year Ended June 30, 2002 26.19 (0.03) 0.73 0.70
Year Ended June 30, 2001 25.18 0.04 3.63 3.67
RATIOS/SUPPLE
MENTAL
DISTRIBUTIONS DATA
-------------------------------------- -------------
NET ASSET NET ASSETS,
NET NET VALUE, END OF
INVESTMENT REALIZED TOTAL END OF TOTAL PERIOD
INCOME GAINS DISTRIBUTIONS PERIOD RETURN* (000'S)
---------- -------- ------------- --------- ----------- -------------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) -- (5.10) (5.10) $ 32.69 17.26%(a) $ 3,279
Year Ended September 30, 2005 -- (2.49) (2.49) 32.96 8.67% 2,793
Period Ended September 30, 2004 (d) -- -- -- 32.59 (0.31%)(a) 1,771
Period Ended June 30, 2004 (e) -- -- -- 32.69 1.02%(a) 882
CLASS C
Six Months Ended March 31, 2006 (Unaudited) -- (5.10) (5.10) $ 32.12 16.80%(a) $ 505
Year Ended September 30, 2005 -- (2.49) (2.49) 32.59 7.89% 473
Period Ended September 30, 2004 (d) -- -- -- 32.47 (0.49%)(a) 196
Period Ended June 30, 2004 (e) -- -- -- 32.63 0.83%(a) 202
CLASS R
Six Months Ended March 31, 2006 (Unaudited) -- (5.10) (5.10) $ 32.47 17.11%(a) $ 16
Year Ended September 30, 2005 -- (2.49) (2.49) 32.81 8.36% 18
Period Ended September 30, 2004 (d) -- -- -- 32.54 (0.37%)(a) 3
Period Ended June 30, 2004 (e) -- -- -- 32.66 0.93%(a) 3
CLASS S
Six Months Ended March 31, 2006 (Unaudited) -- (5.10) (5.10) $ 32.86 17.43%(a) $ 71,227
Year Ended September 30, 2005 -- (2.49) (2.49) 33.06 8.89% 68,071
Period Ended September 30, 2004 (d) -- -- -- 32.62 (0.24%)(a) 74,165
Year Ended June 30, 2004 (f) -- -- -- 32.70 37.57% 76,036
Year Ended June 30, 2003 -- (0.51) (0.51) 23.78 (5.22%) 53,261
Year Ended June 30, 2002 (0.01) (1.26) (1.27) 25.62 2.91% 61,420
Year Ended June 30, 2001 (0.03) (2.63) (2.66) 26.19 15.54% 60,322
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIO OF NET
INVESTMENT
RATIO OF INCOME RATIO OF
EXPENSES TO (LOSS) TO EXPENSES TO
AVERAGE AVERAGE AVERAGE PORTFOLIO
NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
----------- ------------ ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) 1.55%(b) (0.65%)(b) 2.15%(b) 19%
Year Ended September 30, 2005 1.55% (0.77%) 2.13% 33%
Period Ended September 30, 2004 (d) 1.55%(b) (0.80%)(b) 1.94%(b) 8%
Period Ended June 30, 2004 (e) 1.54%(b) (1.08%)(b) 2.64%(b) 33%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) 2.30%(b) (1.40%)(b) 2.66%(b) 19%
Year Ended September 30, 2005 2.30% (1.47%) 2.64% 33%
Period Ended September 30, 2004 (d) 2.30%(b) (1.58%)(b) 2.52%(b) 8%
Period Ended June 30, 2004 (e) 2.30%(b) (1.88%)(b) 3.18%(b) 33%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) 1.80%(b) (0.91%)(b) 2.15%(b) 19%
Year Ended September 30, 2005 1.80% (1.01%) 2.15% 33%
Period Ended September 30, 2004 (d) 1.76%(b) (1.05%)(b) 1.95%(b) 8%
Period Ended June 30, 2004 (e) 1.82%(b) (0.98%)(b) 2.38%(b) 33%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) 1.30%(b) (0.40%)(b) 1.65%(b) 19%
Year Ended September 30, 2005 1.30% (0.53%) 1.63% 33%
Period Ended September 30, 2004 (d) 1.30%(b) (0.57%)(b) 1.53%(b) 8%
Year Ended June 30, 2004 (f) 1.30% (0.48%) 1.54% 33%
Year Ended June 30, 2003 1.30% (0.18%) 1.38% 25%
Year Ended June 30, 2002 1.30% (0.14%) (c) 37%
Year Ended June 30, 2001 1.30% 0.12% (c) 41%
* Excludes sales charge.
** During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio
would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June 30,
2004.
(f) The existing class of shares was designated Class S shares as of April 19,
2004.
SEE NOTES TO FINANCIAL STATEMENTS.
41
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Value Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES
-------------------------------------
NET REALIZED
AND
NET ASSET NET UNREALIZED
VALUE, INVESTMENT GAINS TOTAL FROM
BEGINNING INCOME (LOSSES) ON INVESTMENT
OF PERIOD (LOSS) INVESTMENTS ACTIVITIES
--------- ---------- ----------- ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 45.66 0.36 1.45 1.81
Year Ended September 30, 2005 45.01 0.43 4.53 4.96
Period Ended September 30, 2004 (d) 44.18 (0.01) 0.84 0.83
Period Ended June 30, 2004 (e) 44.16 0.08 (0.06) 0.02
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 45.22 0.07 1.57 1.64
Year Ended September 30, 2005 44.85 0.02 4.58 4.60
Period Ended September 30, 2004 (d) 44.11 (g) 0.74 0.74
Period Ended June 30, 2004 (e) 44.16 0.04 (0.09) (0.05)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 45.59 0.13 1.62 1.75
Year Ended September 30, 2005 44.95 0.44 4.40 4.84
Period Ended September 30, 2004 (d) 44.16 0.08 0.71 0.79
Period Ended June 30, 2004 (e) 44.16 0.09 (0.09) --
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 45.78 0.32 1.55 1.87
Year Ended September 30, 2005 45.05 0.74 4.35 5.09
Period Ended September 30, 2004 (d) 44.20 0.14 0.71 0.85
Year Ended June 30, 2004 (f) 37.98 0.56 6.47 7.03
Year Ended June 30, 2003 42.85 0.45 (4.88) (4.43)
Year Ended June 30, 2002 45.43 0.44 (1.87) (1.43)
Year Ended June 30, 2001 38.76 0.65 7.12 7.77
DISTRIBUTIONS
----------------------------------------------------
NET ASSET
NET NET VALUE,
INVESTMENT RETURN REALIZED TOTAL END OF TOTAL
INCOME OF CAPITAL GAINS DISTRIBUTIONS PERIOD RETURN*
---------- ---------- -------- ------------- --------- -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) (0.51) -- (7.05) (7.56) $ 39.91 4.39%(a)
Year Ended September 30, 2005 (0.41) -- (3.90) (4.31) 45.66 11.12%
Period Ended September 30, 2004 (d) -- -- -- -- 45.01 1.88%(a)
Period Ended June 30, 2004 (e) -- -- -- -- 44.18 0.05%(a)
CLASS C
Six Months Ended March 31, 2006 (Unaudited) (0.21) -- (7.05) (7.26) $ 39.60 3.99%(a)
Year Ended September 30, 2005 (0.33) -- (3.90) (4.23) 45.22 10.29%
Period Ended September 30, 2004 (d) -- -- -- -- 44.85 1.68%(a)
Period Ended June 30, 2004 (e) -- -- -- -- 44.11 (0.11%)(a)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) (0.38) -- (7.05) (7.43) $ 39.91 4.25%(a)
Year Ended September 30, 2005 (0.30) -- (3.90) (4.20) 45.59 10.85%
Period Ended September 30, 2004 (d) -- -- -- -- 44.95 1.79%(a)
Period Ended June 30, 2004 (e) -- -- -- -- 44.16 0.00%(a)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) (0.61) -- (7.05) (7.66) $ 39.99 4.53%(a)
Year Ended September 30, 2005 (0.46) -- (3.90) (4.36) 45.78 11.42%
Period Ended September 30, 2004 (d) -- -- -- -- 45.05 1.92%(a)
Year Ended June 30, 2004 (f) (0.41) -- (0.40) (0.81) 44.20 18.60%
Year Ended June 30, 2003 (0.44) -- -- (0.44) 37.98 (10.26%)
Year Ended June 30, 2002 (0.07) (0.41) (0.67) (1.15) 42.85 (3.02%)
Year Ended June 30, 2001 (0.90) -- (0.20) (1.10) 45.43 20.30%
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------------------
RATIO OF NET
NET ASSETS, RATIO OF INVESTMENT RATIO OF
END OF EXPENSES TO INCOME TO EXPENSES TO
PERIOD AVERAGE AVERAGE AVERAGE PORTFOLIO
(000'S) NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
----------- ----------- ------------ ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 1,028 1.32%(b) 0.97%(b) 1.74%(b) 20%
Year Ended September 30, 2005 2,136 1.28% 1.16% 1.77% 35%
Period Ended September 30, 2004 (d) 717 1.21%(b) 1.08%(b) 1.65%(b) 5%
Period Ended June 30, 2004 (e) 295 1.21%(b) 1.43%(b) 1.72%(b) 14%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 23 2.07%(b) 0.29%(b) 2.24%(b) 20%
Year Ended September 30, 2005 27 2.02% 0.43% 2.26% 35%
Period Ended September 30, 2004 (d) 5 1.96%(b) 0.21%(b) 2.17%(b) 5%
Period Ended June 30, 2004 (e) 5 1.97%(b) 0.57%(b) 2.20%(b) 14%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 4 1.56%(b) 0.83%(b) 1.69%(b) 20%
Year Ended September 30, 2005 4 1.52% 0.99% 1.77% 35%
Period Ended September 30, 2004 (d) 3 1.44%(b) 0.74%(b) 1.65%(b) 5%
Period Ended June 30, 2004 (e) 3 1.45%(b) 1.08%(b) 1.72%(b) 14%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 311,902 1.06%(b) 1.32%(b) 1.24%(b) 20%
Year Ended September 30, 2005 366,952 1.01% 1.52% 1.25% 35%
Period Ended September 30, 2004 (d) 379,023 0.96%(b) 1.22%(b) 1.15%(b) 5%
Year Ended June 30, 2004 (f) 386,932 0.96% 1.30% 1.14% 14%
Year Ended June 30, 2003 373,781 0.96% 1.24% 0.99% 78%
Year Ended June 30, 2002 436,487 0.96% 1.02% (c) 25%
Year Ended June 30, 2001 495,817 0.96% 1.38% (c) 27%
* Excludes sales charge.
** During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio
would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June 30,
2004.
(f) The existing class of shares was designated Class S shares as of April 19,
2004.
(g) Less than $0.01 per share.
SEE NOTES TO FINANCIAL STATEMENTS.
42
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Microcap Value Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES
--------------------------------------
NET REALIZED
AND
NET ASSET NET UNREALIZED
VALUE, INVESTMENT GAINS TOTAL FROM
BEGINNING INCOME (LOSSES) ON INVESTMENT
OF PERIOD (LOSS) INVESTMENTS ACTIVITIES
--------- ---------- ------------ ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 21.52 0.01 2.84 2.85
Year Ended September 30, 2005 18.83 0.07 3.57 3.64
Period Ended September 30, 2004 (d) 19.12 (0.01) (0.28) (0.29)
Period Ended June 30, 2004 (e) 19.04 -- 0.08 0.08
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 21.33 (0.06) 2.81 2.75
Year Ended September 30, 2005 18.77 (0.08) 3.54 3.46
Period Ended September 30, 2004 (d) 19.09 (0.02) (0.30) (0.32)
Period Ended June 30, 2004 (e) 19.04 (0.02) 0.07 0.05
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 21.47 (0.05) 2.88 2.83
Year Ended September 30, 2005 18.81 (0.03) 3.60 3.57
Period Ended September 30, 2004 (d) 19.11 (0.01) (0.29) (0.30)
Period Ended June 30, 2004 (e) 19.04 -- 0.07 0.07
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 21.59 0.02 2.87 2.89
Year Ended September 30, 2005 18.86 0.04 3.65 3.69
Period Ended September 30, 2004 (d) 19.14 0.01 (0.29) (0.28)
Year Ended June 30, 2004 (f) 13.60 0.05 5.60 5.65
Year Ended June 30, 2003 14.60 0.05 (0.72) (0.67)
Year Ended June 30, 2002 13.23 0.03 1.58 1.61
Year Ended June 30, 2001 12.26 0.13 1.74 1.87
RATIOS/SUPPLE
MENTAL
DISTRIBUTIONS DATA
------------------------------------- -------------
NET ASSET NET ASSETS,
NET NET VALUE, END OF
INVESTMENT REALIZED TOTAL END OF TOTAL PERIOD
INCOME GAINS DISTRIBUTIONS PERIOD RETURN* (000'S)
---------- -------- ------------- --------- ---------- -------------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) (0.04) (1.84) (1.88) $ 22.49 14.30%(a) $ 18,509
Year Ended September 30, 2005 (0.15) (0.80) (0.95) 21.52 19.62% 10,328
Period Ended September 30, 2004 (d) -- -- -- 18.83 (1.52%)(a) 1,522
Period Ended June 30, 2004 (e) -- -- -- 19.12 0.42%(a) 405
CLASS C
Six Months Ended March 31, 2006 (Unaudited) -- (1.84) (1.84) $ 22.24 13.91%(a) $ 1,129
Year Ended September 30, 2005 (0.10) (0.80) (0.90) 21.33 18.72% 506
Period Ended September 30, 2004 (d) -- -- -- 18.77 (1.68%)(a) 167
Period Ended June 30, 2004 (e) -- -- -- 19.09 0.26%(a) 4
CLASS R
Six Months Ended March 31, 2006 (Unaudited) -- (1.84) (1.84) $ 22.46 14.20%(a) $ 92
Year Ended September 30, 2005 (0.11) (0.80) (0.91) 21.47 19.27% 143
Period Ended September 30, 2004 (d) -- -- -- 18.81 (1.57%)(a) 94
Period Ended June 30, 2004 (e) -- -- -- 19.11 0.37%(a) 104
CLASS S
Six Months Ended March 31, 2006 (Unaudited) (0.08) (1.84) (1.92) $ 22.56 14.44%(a) $241,580
Year Ended September 30, 2005 (0.16) (0.80) (0.96) 21.59 19.89% 232,912
Period Ended September 30, 2004 (d) -- -- -- 18.86 (1.46%)(a) 218,871
Year Ended June 30, 2004 (f) (0.05) (0.06) (0.11) 19.14 41.63% 234,956
Year Ended June 30, 2003 (0.04) (0.29) (0.33) 13.60 (4.55%) 92,202
Year Ended June 30, 2002 (0.02) (0.22) (0.24) 14.60 12.44% 96,312
Year Ended June 30, 2001 (0.13) (0.77) (0.90) 13.23 16.82% 62,162
RATIOS/SUPPLEMENTAL DATA
------------------------------------------------------------
RATIO OF NET
INVESTMENT
RATIO OF INCOME RATIO OF
EXPENSES TO (LOSS) TO EXPENSES TO
AVERAGE AVERAGE AVERAGE PORTFOLIO
NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
----------- ------------ ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) 1.35%(b) (0.16%)(b) 1.71%(b) 4%
Year Ended September 30, 2005 1.33% (0.04%) 1.73% 8%
Period Ended September 30, 2004 (d) 1.28%(b) 0.04%(b) 1.63%(b) 3%
Period Ended June 30, 2004 (e) 1.26%(b) 0.00%(b) 1.91%(b) 11%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) 2.10%(b) (0.93%)(b) 2.21%(b) 4%
Year Ended September 30, 2005 2.08% (0.77%) 2.22% 8%
Period Ended September 30, 2004 (d) 2.03%(b) (0.70%)(b) 2.06%(b) 3%
Period Ended June 30, 2004 (e) 2.03%(b) (0.62%)(b) 2.22%(b) 11%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) 1.60%(b) (0.39%)(b) 1.71%(b) 4%
Year Ended September 30, 2005 1.57% (0.27%) 1.72% 8%
Period Ended September 30, 2004 (d) 1.53%(b) (0.29%)(b) 1.67%(b) 3%
Period Ended June 30, 2004 (e) 1.49%(b) 0.15%(b) 2.17%(b) 11%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) 1.10%(b) 0.11%(b) 1.21%(b) 4%
Year Ended September 30, 2005 1.07% 0.23% 1.22% 8%
Period Ended September 30, 2004 (d) 1.03%(b) 0.22%(b) 1.16%(b) 3%
Year Ended June 30, 2004 (f) 1.03% 0.31% 1.20% 11%
Year Ended June 30, 2003 1.03% 0.36% 1.08% 17%
Year Ended June 30, 2002 1.03% 0.26% (c) 34%
Year Ended June 30, 2001 1.03% 1.20% (c) 29%
* Excludes sales charge.
** During the period, certain fees were contractually reduced. If such
contractual fee reductions had not occurred, the ratio would have been as
indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June 30,
2004.
(f) The existing class of shares was designated Class S shares as of April 19,
2004.
SEE NOTES TO FINANCIAL STATEMENTS.
43
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
March 31, 2006 (Unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION
Tamarack Funds Trust ("Tamarack") is registered under the Investment Company
Act of 1940 (as amended) as an open-end management investment company. Tamarack
was organized as a Delaware statutory trust on December 16, 2003. Predecessor
funds to Tamarack were reorganized as portfolios of Tamarack effective April
16, 2004. This semi-annual report includes the following seven investment
portfolios ("Funds"):
- - Tamarack Large Cap Growth Fund ("Large Cap Growth Fund")
- - Tamarack Mid Cap Growth Fund ("Mid Cap Growth Fund")
- - Tamarack Small Cap Growth Fund ("Small Cap Growth Fund")
- - Tamarack Enterprise Fund ("Enterprise Fund")
- - Tamarack Enterprise Small Cap Fund ("Enterprise Small Cap Fund")
- - Tamarack Value Fund ("Value Fund")
- - Tamarack Microcap Value Fund ("Microcap Value Fund")
The Large Cap Growth, Mid Cap Growth, Small Cap Growth and Enterprise Funds
offer five share classes: Class A, Class C, Class R, Class I and Class S
shares. The Enterprise Small Cap, Value, and Microcap Value Funds offer four
share classes: Class A, Class C, Class R and Class S shares. Class A shares are
offered with a 5.75% maximum front-end sales charge and a 1.00% contingent
deferred sales charge ("CDSC") for redemption within 12 months of a $1 million
or greater purchase. Class C shares are offered at net asset value (i.e. no
front-end sales charge), but are subject to a CDSC of 1.00% for redemptions
within 12 months of purchase. Class R (available to certain 401(k) and other
employer-sponsored retirement plans), Class I shares (intended for investors
meeting certain investment minimum thresholds) and Class S shares (available
through certain fee-based programs of broker-dealers or registered investment
advisers) are not subject to either a front-end sales charge or a CDSC.
Voyageur Asset Management Inc. ("Voyageur") acts as the investment advisor for
Tamarack. The officers of Tamarack ("Fund Management") are also employees of
Voyageur or its affiliates.
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
Summarized below are the significant accounting policies of the Funds. These
policies conform to accounting principles generally accepted in the United
States of America ("GAAP"). Fund management follows these policies when
preparing financial statements. Management may also be required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
income and expenses for the period. Actual results could differ from those
estimates.
SECURITY VALUATION:
Equity securities traded on one or more U.S. exchanges shall be valued at the
last available quoted sale price on the primary trading exchange as of the
Valuation Time. Valuation Time is as of the close of regular trading on the New
York Stock Exchange (usually 4:00 p.m. Eastern Standard Time). If there was no
sale on the primary exchange on the day the net asset value is calculated
("Value Date"), the most recent bid quotation generally will be used. In cases
where neither closing prices nor bid prices are available, or where those
prices do not accurately reflect the value of the security, a security will be
valued in accordance with the Board of Trustees' approved pricing and
44
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
valuation procedures that Tamarack has established to estimate a security's
fair value. These procedures are also used to estimate the fair value of a
security if a significant event occurs that materially affects the value of the
security. Foreign equity securities generally are valued in their national
currency at the latest available quoted sale price as of the close of trading
on the foreign exchange or other principal market on which the security is
traded. In the absence of current trading activity, the securities will be
valued at the last bid quotation. The value is then converted into its U.S.
dollar equivalent using the latest foreign exchange bid quotation as of the
Value Time. Investments in open-end investment companies are valued at net
asset value. Short-term securities with less than 60 days to maturity at time
of purchase are valued at amortized cost.
INVESTMENT TRANSACTIONS AND INCOME:
Investment transactions are recorded on one business day after trade date,
except for on the last day of each fiscal quarter end, when they are recorded
on trade date. Dividend income is recorded on the ex-dividend date. Securities
gains and losses are calculated based on the costs of the specific security
(also known as identified cost basis). Interest income is recognized on the
accrual basis and includes, where applicable, the amortization or accretion of
premium or discount.
EXPENSE, INVESTMENT INCOME AND GAIN/LOSS ALLOCATION:
Each Fund pays the expenses that are directly related to its operations, such
as trading costs or portfolio management fees. Expenses incurred by Tamarack on
behalf of multiple Funds, such as trustee or legal fees, are allocated among
each of the Funds either proportionately based upon each Fund's relative net
assets or using another reasonable basis such as equally across all Funds,
depending on the nature of the expense. Individual share classes within a Fund
are charged expenses specific to that class, such as sales and distribution
fees. Within a Fund, expenses other than class specific expenses are allocated
daily to each class based upon the proportion of relative net assets.
Investment income and realized and unrealized gains or losses are allocated to
each class of shares based on relative net assets.
FINANCIAL INSTRUMENTS:
The Funds may enter into futures contracts in an effort to hedge against market
risk. A futures contract on a securities index is an agreement obligating one
party to pay, and entitling the other party to receive, during the term of the
contract, cash payments based on the level of a specified securities index. Put
and call options on futures contracts would give a Fund the right (but not the
obligation) to sell or to purchase for a specified price the underlying futures
contract at any time during the option period. Futures transactions involve
brokerage costs and require a Fund to segregate assets to cover contracts that
would require it to purchase securities or currencies. A Fund may lose the
expected benefit of futures transactions if interest rates, exchange rates or
securities prices change in an unanticipated manner. Such unanticipated changes
may also result in lower overall performance than if a Fund had not entered
into any futures transactions.
Upon entering into a futures contract, a Fund is required to pledge to the
broker an amount of cash, U.S. government securities, or other assets, equal to
a certain percentage of the contract amount. Subsequent payments are made or
received by the Fund each day, depending on the daily fluctuations in fair
value of the underlying index.
45
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
A Fund would recognize a gain or loss each day equal to the income received or
paid. The Funds did not enter into futures contracts during the period ended
March 31, 2006.
DISTRIBUTIONS TO SHAREHOLDERS:
Each of the Funds pays out any income that it receives, less expenses, in the
form of dividends to its shareholders. Income dividends and capital gains on
each Fund are declared and paid at least annually. Distributions to
shareholders are recorded on the ex-dividend date. The amount of dividends and
distributions are calculated based on federal income tax regulations, which may
differ from GAAP. These "book/tax" differences may be either temporary or
permanent in nature. To the extent these differences are permanent (e.g.,
expiring capital loss carry forward and foreign currency transactions), they
are reclassified within a Fund's capital accounts based on their federal tax
basis treatment. Such differences are not reflected in the calculation of the
financial highlights. The Value Fund utilizes earnings and profits distributed
to shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
SECURITIES LENDING:
The Funds may lend their portfolio securities to brokers, dealers and financial
institutions, provided: (1) the loan is secured continuously by collateral
consisting of U.S. Government securities, cash or letters of credit maintained
on a daily mark-to-market basis in an amount at least equal to 100% of the
current market value of the securities loaned; (2) the Funds may at any time
call the loan and obtain the return of the securities loaned within five
business days; (3) the Funds will receive any interest or dividends paid on the
loaned securities; and (4) the aggregate market value of securities loaned will
not at any time exceed 331/3% of the total assets of a particular Fund. The
Funds do not have the right to vote the securities during the existence of the
loan but could call the loan in an attempt to permit voting of the securities
in certain circumstances.
The Funds will earn income for lending their securities from fees paid by
borrowers and from the investment of cash collateral. The Funds will then pay
the lending agent (Wells Fargo Bank) a percentage of the lending income.
Securities lending income is presented net of such payments to the lending
agent in the financial statements. Loans of securities involve a risk that the
borrower may fail to return the securities or may fail to provide additional
collateral. In the event that a borrower fails to return the lent security, the
lending agent will indemnify the Funds based on the difference in value between
the closing market value of the security on the date it should have been
returned and the value of the cash collateral. The Funds assume all risk of
loss from a decline in the market value of the collateral investment and any
resulting collateral deficiencies. In an effort to reduce these risks, Voyageur
and Wells Fargo Bank will monitor the creditworthiness of the firms to which
the Funds lend securities.
The following summarizes the market value of the securities that were on loan
to brokers and the value of securities and cash held as collateral for these
loans as of March 31, 2006.
Value of Securities
Loaned Value of Collateral
-------------------- --------------------
Large Cap Growth Fund $13,140,469 $13,635,787
Mid Cap Growth Fund 17,657,047 18,111,483
Enterprise Fund 53,347,224 55,643,507
Enterprise Small Cap Fund 10,889,680 11,226,790
Value Fund 20,405,585 21,145,029
46
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
See page 74, Notes to Schedules of Portfolio Investments, for a detailed
breakdown of the investments purchased with the collateral received.
- --------------------------------------------------------------------------------
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Tamarack, on behalf of the Funds, has entered into investment advisory
agreements with Voyageur, under which Voyageur manages each Fund's assets and
furnishes related office facilities, equipment, research and personnel. The
agreements require each Fund to pay Voyageur a monthly fee based upon average
daily net assets. Under the terms of the advisory contracts, Voyageur is
entitled to receive fees based on a percentage of the average daily net assets
of each of the Funds as follows:
Average Daily Net
Assets of Fund Annual Rate
----------------- -----------
Large Cap Growth Fund All Net Assets 0.70%
Mid Cap Growth Fund All Net Assets 0.70%
Small Cap Growth Fund All Net Assets 0.70%
Enterprise Fund Up to $30 million 1.40%
Over $30 million 0.90%
Enterprise Small Cap Fund Up to $30 million 1.40%
Over $30 million 0.90%
Value Fund All Net Assets 0.85%
Microcap Value Fund All Net Assets 0.90%
Effective January 28, 2006, Voyageur has contractually agreed to waive fees
and/or make payments in order to keep total operating expenses of the Class S
shares of each fund to the following levels:
Annual Rate
-----------
Large Cap Growth Fund Class S and Class I 1.00%
Mid Cap Growth Fund Class S and Class I 1.10%
Small Cap Growth Fund Class S and Class I 1.43%
Enterprise Fund Class S and Class I 1.08%
Enterprise Small Cap Fund Class S 1.30%
Value Fund Class S 1.03%
Microcap Value Fund Class S 1.07%
Classes A, C, and R vary from these limits only by the addition of class
specific 12b-1 fees. These expense limitation agreements are in place until
January 31, 2007. Voyageur may also voluntarily waive and/or reimburse
operating expenses of any Fund from time to time. Any such voluntary program
may be changed or eliminated at any time without notice. Prior expense
limitation agreements for the Value and Microcap Value Funds were superseded by
new expense limitation agreements effective January 28, 2006. The expense
ratios for the period ended March 31, 2006 for these Funds, as reflected in the
Financial Highlights, are a blended rate based on the prior agreement and the
expense limitation agreements currently in place as described above.
Voyageur employs, at its own expense, Babson Capital Management LLC ("Babson"),
as sub-advisor to provide day-to-day portfolio management for the Enterprise
and Enterprise Small Cap Funds. During the period ended March 31, 2006,
Voyageur assumed day-to-day portfolio management for the Value and Microcap
Value Funds, which had previously been provided by Babson. Voyageur assumed
these duties on January 28, 2006, when the sub-advisory agreement with Babson
was terminated by the Board of Trustees, subsequent to material changes in the
members of the portfolio management team at Babson providing services for the
Value and Microcap Value Funds.
47
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
Voyageur serves as administrator to the Funds and BISYS Fund Services Ohio,
Inc. ("BISYS") serves as sub-administrator. Services provided under the
administrative services contract include providing day-to-day administration of
matters related to the Funds, maintenance of their records and the preparation
of reports. Under the terms of the administrative services contract, Voyageur
receives from each Fund a fee, payable monthly, at the annual rate of 0.10% of
each Fund's average daily net assets. For its services as sub-administrator,
BISYS receives a fee payable by Voyageur out of Voyageur's own resources.
- --------------------------------------------------------------------------------
4. FUND DISTRIBUTION
Each of the Funds has adopted a Master Distribution 12b-1 Plan (the "Plan") in
which Tamarack Distributors Inc. (the "Distributor") acts as the Funds'
distributor. The Distributor is an affiliate of Voyageur. The Plan permits each
Fund to make payments for, or to reimburse the Distributor monthly for,
distribution-related costs and expenses of marketing shares of each share class
covered under the Plan, and/or for providing shareholder services. The
following chart shows the current Plan fee rate for each class.
Class A Class C Class R
------- ------- -------
12b-1 Plan Fee 0.25%* 1.00% 0.50%
Plan fees are based on average annual daily net assets of the applicable class.
The Distributor, subject to applicable legal requirements, may waive a Plan fee
voluntarily, in whole or in part.
*The maximum Plan fee rate for Class A shares is 0.50%. The Distributor is
contractually waiving 0.25% of the total 0.50% Plan fee for Class A through
January 31, 2007.
For the period ended March 31, 2006, the Distributor received commissions of
$80,052 from front-end sales charges of Class A shares of the Funds, of which
$4,660 was paid to affiliated broker-dealers, the remainder was either paid to
unaffiliated broker-dealers or retained by the Distributor. The Distributor
also received $546 from CDSC fees from Class C shares of the Funds.
- --------------------------------------------------------------------------------
5. SECURITIES TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
short-term securities) for the period ended March 31, 2006 were as follows:
Purchases Sales
--------- -----
Large Cap Growth Fund $22,599,112 $39,903,903
Mid Cap Growth Fund 13,035,163 18,533,163
Small Cap Growth Fund 1,102,183 2,595,092
Enterprise Fund 46,133,937 67,266,848
Enterprise Small Cap Fund 13,082,976 19,755,185
Value Fund 68,309,539 141,887,351
Microcap Value Fund 9,616,401 17,666,585
- --------------------------------------------------------------------------------
6. CAPITAL SHARE TRANSACTIONS
Tamarack is authorized to issue an unlimited number of shares of beneficial
interest ("shares outstanding") without par value. Transactions in shares of
the Funds are summarized below:
48
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK LARGE CAP GROWTH FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 245,902 $ 1,066,431
Dividends reinvested - -
Cost of shares redeemed (1,172,673) (6,025,192)
------------ ------------
Change in Class A $ (926,771) $ (4,958,761)
------------ ------------
CLASS I
Proceeds from shares issued $ 24,526 $ 599,505
Dividends reinvested 751 21,487
Cost of shares redeemed (2,160,743) (17,554,396)
------------ ------------
Change in Class I $ (2,135,466) $(16,933,404)
------------ ------------
CLASS C
Proceeds from shares issued $ - $ 21,500
Dividends reinvested - -
Cost of shares redeemed - -
------------ ------------
Change in Class C $ - $ 21,500
------------ ------------
CLASS R
Proceeds from shares issued $ 229 $ 9,409
Dividends reinvested - 42
Cost of shares redeemed (4,988) (64,197)
------------ ------------
Change in Class R ($ 4,759) ($ 54,746)
------------ ------------
CLASS S
Proceeds from shares issued $ 793,281 $ 5,837,355
Dividends reinvested 55,695 291,967
Cost of shares redeemed (16,562,803) (41,615,488)
------------ ------------
Change in Class S $(15,713,827) $(35,486,166)
------------ ------------
Change in net assets from capital transactions $(18,780,823) $(57,411,577)
============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 22,279 103,192
Reinvested - -
Redeemed (105,196) (587,721)
------------ ------------
Change in Class A (82,917) (484,529)
------------ ------------
CLASS I
Issued 2,187 58,218
Reinvested 66 2,004
Redeemed (196,309) (1,682,664)
------------ ------------
Change in Class I (194,056) (1,622,442)
------------ ------------
CLASS C
Issued - 2,052
Reinvested - -
Redeemed - -
------------ ------------
Change in Class C - 2,052
------------ ------------
CLASS R
Issued 21 909
Reinvested - 4
Redeemed (483) (6,136)
------------ ------------
Change in Class R (462) (5,223)
------------ ------------
CLASS S
Issued 71,449 549,097
Reinvested 4,916 27,238
Redeemed (1,485,770) (3,950,429)
------------ ------------
Change in Class S (1,409,405) (3,374,094)
------------ ------------
Change in shares from capital transactions (1,686,840) (5,484,236)
============ ============
49
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK MID CAP GROWTH FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005)
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 4,071,222 $ 22,924,315
Dividends reinvested 849,667 9,192,096
Cost of shares redeemed (8,383,659) (58,961,990)
------------ ------------
Change in Class A $ (3,462,770) $(26,845,579)
------------ ------------
CLASS I
Proceeds from shares issued $ 6,952,322 $ 49,639,229
Dividends reinvested 1,149,878 4,657,566
Cost of shares redeemed (5,939,042) (39,173,309)
------------ ------------
Change in Class I $ 2,163,158 $ 15,123,486
------------ ------------
CLASS C
Proceeds from shares issued $ - $ 334,996
Dividends reinvested 6,286 1,742
Cost of shares redeemed (3,760) -
------------ ------------
Change in Class C $ 2,526 $ 336,738
------------ ------------
CLASS R
Proceeds from shares issued $ 296 $ 7,576
Dividends reinvested 186 10,040
Cost of shares redeemed (21,939) (59,141)
------------ ------------
Change in Class R $ (21,457) $ (41,525)
------------ ------------
CLASS S
Proceeds from shares issued $ 249,327 $ 1,303,512
Dividends reinvested 27,546 30,197
Cost of shares redeemed (199,935) (37,112)
------------ ------------
Change in Class S $ 76,938 $ 1,296,597
------------ ------------
Change in net assets from capital transactions $ (1,241,605) $(10,130,283)
============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 317,371 1,967,986
Reinvested 67,434 827,372
Redeemed (684,979) (4,972,339)
------------ ------------
Change in Class A (300,174) (2,176,981)
------------ ------------
CLASS I
Issued 529,679 4,028,517
Reinvested 88,794 409,276
Redeemed (465,947) (3,273,853)
------------ ------------
Change in Class I 152,526 1,163,940
------------ ------------
CLASS C
Issued - 30,694
Reinvested 505 158
Redeemed (305) -
------------ ------------
Change in Class C 200 30,852
------------ ------------
CLASS R
Issued 25 666
Reinvested 15 906
Redeemed (1,918) (5,101)
------------ ------------
Change in Class R (1,878) (3,529)
------------ ------------
CLASS S
Issued 19,001 107,417
Reinvested 2,125 2,653
Redeemed (16,347) (3,198)
------------ ------------
Change in Class S 4,779 106,872
------------ ------------
Change in shares from capital transactions (144,547) (878,846)
============ ============
50
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK SMALL CAP GROWTH FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 523,209 $ 1,943,039
Dividends reinvested 1,925,396 1,252,211
Cost of shares redeemed (1,511,706) (3,692,825)
----------- -----------
Change in Class A $ 936,899 $ (497,575)
----------- -----------
CLASS I
Proceeds from shares issued $ 860,071 $ 1,253,375
Dividends reinvested 776,912 712,681
Cost of shares redeemed (1,237,541) (7,602,663)
----------- -----------
Change in Class I $ 399,442 $(5,636,607)
----------- -----------
CLASS C
Proceeds from shares issued $ 12,650 $ 36,162
Dividends reinvested 12,936 32,389
Cost of shares redeemed (22,427) (222,983)
----------- -----------
Change in Class C $ 3,159 $ (154,432)
----------- -----------
CLASS R
Proceeds from shares issued $ 2,949 $ 73,483
Dividends reinvested 8,741 3,481
Cost of shares redeemed (39,243) (31,739)
----------- -----------
Change in Class R ($ 27,553) $ 45,225
----------- -----------
CLASS S
Proceeds from shares issued $ 158,317 $ 136,114
Dividends reinvested 52,566 8,468
Cost of shares redeemed (6,481) (14,039)
----------- -----------
Change in Class S $ 204,402 $ 130,543
----------- -----------
Change in net assets from capital transactions $ 1,516,349 $(6,112,846)
=========== ===========
SHARE TRANSACTIONS:
CLASS A
Issued 44,205 145,887
Reinvested 186,389 96,324
Redeemed (130,538) (279,411)
----------- -----------
Change in Class A 100,056 (37,200)
----------- -----------
CLASS I
Issued 79,004 94,389
Reinvested 72,949 53,747
Redeemed (94,072) (542,482)
----------- -----------
Change in Class I 57,881 (394,346)
----------- -----------
CLASS C
Issued 1,227 2,791
Reinvested 1,276 2,507
Redeemed (2,062) (16,773)
----------- -----------
Change in Class C 441 (11,475)
----------- -----------
CLASS R
Issued 253 5,810
Reinvested 853 269
Redeemed (2,992) (2,429)
----------- -----------
Change in Class R (1,886) 3,650
----------- -----------
CLASS S
Issued 12,789 10,220
Reinvested 4,940 639
Redeemed (565) (1,032)
----------- -----------
Change in Class S 17,164 9,827
----------- -----------
Change in shares from capital transactions 173,656 (429,544)
=========== ===========
51
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK ENTERPRISE FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 5,056,020 $ 10,180,788
Dividends reinvested 1,539,600 196,368
Cost of shares redeemed (2,925,951) (1,870,426)
------------ ------------
Change in Class A $ 3,669,669 $ 8,506,730
------------ ------------
CLASS I
Proceeds from shares issued $ 2,407,515 $ 4,569,103
Dividends reinvested 3,431,493 1,038,060
Cost of shares redeemed (2,128,047) (5,805,339)
------------ ------------
Change in Class I $ 3,710,961 $ (198,176)
------------ ------------
CLASS C
Proceeds from shares issued $ 654,071 $ 720,262
Dividends reinvested 103,385 6,849
Cost of shares redeemed (40,726) (51,917)
------------ ------------
Change in Class C $ 716,730 $ 675,194
------------ ------------
CLASS R
Proceeds from shares issued $ - $ 49,256
Dividends reinvested 994 255
Cost of shares redeemed (5,067) -
------------ ------------
Change in Class R $ (4,073) $ 49,511
------------ ------------
CLASS S
Proceeds from shares issued $ 16,022,296 $ 16,493,378
Dividends reinvested 33,738,820 12,015,924
Cost of shares redeemed (33,442,166) (81,523,746)
------------ ------------
Change in Class S $ 16,318,950 $(53,014,444)
------------ ------------
Change in net assets from capital transactions $ 24,412,237 $(43,981,185)
============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 199,554 413,084
Reinvested 66,794 7,861
Redeemed (117,370) (76,157)
------------ ------------
Change in Class A 148,978 344,788
------------ ------------
CLASS I
Issued 94,905 185,598
Reinvested 148,101 41,456
Redeemed (84,446) (234,505)
------------ ------------
Change in Class I 158,560 (7,451)
------------ ------------
CLASS C
Issued 26,834 29,242
Reinvested 4,550 276
Redeemed (1,663) (2,074)
------------ ------------
Change in Class C 29,721 27,444
------------ ------------
CLASS R
Issued - 1,974
Reinvested 43 10
Redeemed (204) -
------------ ------------
Change in Class R (161) 1,984
------------ ------------
CLASS S
Issued 637,544 663,680
Reinvested 1,456,142 480,061
Redeemed (1,337,933) (3,296,110)
------------ ------------
Change in Class S 755,753 (2,152,369)
------------ ------------
Change in shares from capital transactions 1,092,851 (1,785,604)
============ ============
52
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK ENTERPRISE SMALL CAP FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005)
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 832,384 $ 2,380,621
Dividends reinvested 414,559 185,455
Cost of shares redeemed (804,485) (1,530,522)
------------ ------------
Change in Class A $ 442,458 $ 1,035,554
------------ ------------
CLASS C
Proceeds from shares issued $ 171,701 $ 461,224
Dividends reinvested 95,240 14,187
Cost of shares redeemed (229,939) (202,006)
------------ ------------
Change in Class C $ 37,002 $ 273,405
------------ ------------
CLASS R
Proceeds from shares issued $ - $ 14,012
Dividends reinvested 2,723 953
Cost of shares redeemed (4,157) -
------------ ------------
Change in Class R $ (1,434) $ 14,965
------------ ------------
CLASS S
Proceeds from shares issued $ 968,560 $ 2,454,568
Dividends reinvested 9,753,447 5,242,047
Cost of shares redeemed (8,327,242) (14,584,577)
------------ ------------
Change in Class S $ 2,394,765 $ (6,887,962)
------------ ------------
Change in net assets from capital transactions $ 2,872,791 $ (5,564,038)
============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 26,588 71,803
Reinvested 14,806 5,553
Redeemed (25,814) (46,948)
------------ ------------
Change in Class A 15,580 30,408
------------ ------------
CLASS C
Issued 5,557 14,298
Reinvested 3,453 427
Redeemed (7,805) (6,225)
------------ ------------
Change in Class C 1,205 8,500
------------ ------------
CLASS R
Issued - 404
Reinvested 98 29
Redeemed (145) -
------------ ------------
Change in Class R (47) 433
------------ ------------
CLASS S
Issued 31,005 74,653
Reinvested 346,728 156,663
Redeemed (268,552) (446,464)
------------ ------------
Change in Class S 109,181 (215,148)
------------ ------------
Change in shares from capital transactions 125,919 (175,807)
============ ============
53
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK VALUE FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 291,711 $ 1,472,596
Dividends reinvested 337,055 66,192
Cost of shares redeemed (1,454,241) (133,888)
------------ ------------
Change in Class A $ (825,475) $ 1,404,900
------------ ------------
CLASS C
Proceeds from shares issued $ 1,200 $ 20,325
Dividends reinvested 4,460 1,824
Cost of shares redeemed (6,265) (200)
------------ ------------
Change in Class C $ (605) $ 21,949
------------ ------------
CLASS R
Proceeds from shares issued $ - $ -
Dividends reinvested 598 309
Cost of shares redeemed - -
------------ ------------
Change in Class R $ 598 $ 309
------------ ------------
CLASS S
Proceeds from shares issued $ 7,852,298 $ 14,848,948
Dividends reinvested 57,366,366 34,436,429
Cost of shares redeemed (76,816,498) (67,966,941)
------------ ------------
Change in Class S $(11,597,834) $(18,681,564)
------------ ------------
Change in net assets from capital transactions $(12,423,316) $(17,254,406)
============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 6,854 32,354
Reinvested 8,660 1,466
Redeemed (36,519) (2,989)
------------ ------------
Change in Class A (21,005) 30,831
------------ ------------
CLASS C
Issued 27 435
Reinvested 115 41
Redeemed (159) (4)
------------ ------------
Change in Class C (17) 472
------------ ------------
CLASS R
Issued - -
Reinvested 15 7
Redeemed - -
------------ ------------
Change in Class R 15 7
------------ ------------
CLASS S
Issued 191,593 324,852
Reinvested 1,472,443 762,033
Redeemed (1,879,848) (1,484,514)
------------ ------------
Change in Class S (215,812) (397,629)
------------ ------------
Change in shares from capital transactions (236,819) (366,319)
============ ============
54
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK MICROCAP VALUE FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 8,632,091 $ 9,681,055
Dividends reinvested 724,313 138,103
Cost of shares redeemed (2,091,725) (1,708,391)
------------ ------------
Change in Class A $ 7,264,679 $ 8,110,767
------------ ------------
CLASS C
Proceeds from shares issued $ 556,381 $ 309,334
Dividends reinvested 40,803 10,671
Cost of shares redeemed (32,285) (20,393)
------------ ------------
Change in Class C $ 564,899 $ 299,612
------------ ------------
CLASS R
Proceeds from shares issued $ 13,874 $ 30,532
Dividends reinvested 8,962 4,653
Cost of shares redeemed (77,457) (2,283)
------------ ------------
Change in Class R $ (54,621) $ 32,902
------------ ------------
CLASS S
Proceeds from shares issued $ 11,438,209 $ 22,360,127
Dividends reinvested 19,192,907 10,338,361
Cost of shares redeemed (33,274,000) (49,221,725)
------------ ------------
Change in Class S $ (2,642,884) $(16,523,237)
------------ ------------
Change in net assets from capital transactions $ 5,132,073 $ (8,079,956)
============ ============
SHARE TRANSACTIONS:
CLASS A
Issued 405,735 476,629
Reinvested 36,125 6,859
Redeemed (98,962) (84,378)
------------ ------------
Change in Class A 342,898 399,110
------------ ------------
CLASS C
Issued 26,482 15,346
Reinvested 2,055 531
Redeemed (1,498) (1,010)
------------ ------------
Change in Class C 27,039 14,867
------------ ------------
CLASS R
Issued 659 1,505
Reinvested 447 231
Redeemed (3,661) (111)
------------ ------------
Change in Class R (2,555) 1,625
------------ ------------
CLASS S
Issued 536,605 1,096,146
Reinvested 954,871 512,053
Redeemed (1,572,633) (2,426,665)
------------ ------------
Change in Class S (81,157) (818,466)
------------ ------------
Change in shares from capital transactions 286,225 (402,864)
============ ============
55
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
7. FEDERAL INCOME TAXES
It is the policy of each Fund to qualify as a regulated investment company by
complying with the provisions available to certain investment companies, as
defined under Subchapter M of the Internal Revenue Code, and to distribute
substantially all of its net investment income and net realized capital gains.
Therefore, no federal tax liability is recorded in the financial statements of
each Fund. Effective as of the taxable year ended September 30, 2004, each of
the Funds changed its annual tax period to September 30th.
The tax cost of securities differ from financial reporting cost by the amount
of losses recognized for financial reporting purposes in excess of those
allowed to be recognized for federal income tax purposes. As of March 31, 2006,
the tax cost of securities and the breakdown of unrealized appreciation
(depreciation) for each Fund were as follows:
Net Unrealized
Tax Cost Unrealized Unrealized Appreciation
of Securities Appreciation Depreciation (Depreciation)
------------- ------------ ------------ --------------
Large Cap Growth Fund $129,751,736 $ 22,583,981 $ (6,628,691) $ 15,955,290
Mid Cap Growth Fund 96,539,774 30,532,903 (2,098,388) 28,434,515
Small Cap Growth Fund 9,247,769 3,688,273 (603,188) 3,085,085
Enterprise Fund 277,369,717 132,240,533 (13,933,775) 118,306,758
Enterprise Small Cap Fund 47,279,138 30,475,341 (2,973,030) 27,502,311
Value Fund 219,637,721 102,342,163 (4,899,727) 97,442,436
Microcap Value Fund 171,720,409 103,376,871 (14,164,198) 89,212,673
The tax character of distributions during the fiscal year ended September 30,
2005 was as follows:
Distribution Paid From
----------------------------------------------------------------------------------
Net Total
Investment Net Long Term Total Taxable Tax Exempt Distributions
Income Capital Gains Distributions Distributions Paid
---------- ------------- ------------- ------------- -------------
Large Cap Growth
Fund $ 357,837 $ - $ 357,837 $ - $ 357,837
Mid Cap Growth
Fund - 14,589,566 14,589,566 - 14,589,566
Small Cap Growth
Fund 48,489 2,178,450 2,226,939 - 2,226,939
Enterprise Fund 1,379,503 13,162,312 14,541,815 - 14,541,815
Enterprise Small Cap
Fund - 5,723,541 5,723,541 - 5,723,541
Value Fund 6,906,033 28,842,246 35,748,279 - 35,748,279
Microcap Value
Fund 2,924,828 7,999,771 10,924,599 - 10,924,599
As of September 30, 2005 the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Accum. Total
Undist. Undist. Capital and Unrealized Accum.
Ordinary Long-Term Accum. Dist. Other Appreciation/ Earnings/
Income Capital Gains Earnings Payable Losses Depreciation (Deficit)
-------- ------------- -------- ------- ----------- ------------- ---------
Large Cap Growth
Fund $ 63,066 $ - $ 63,066 $ - $(36,707,333) $ 12,603,913 $(24,040,354)
Mid Cap Growth
Fund - 1,621,492 1,621,492 - - 14,821,801 16,443,293
Small Cap Growth
Fund 93,040 2,745,780 2,838,820 - - 2,168,579 5,007,399
Enterprise Fund - 40,289,904 40,289,904 - - 92,004,028 132,293,932
Enterprise Small Cap
Fund 628,113 9,626,709 10,254,822 - - 20,247,603 30,502,425
Value Fund 7,393,936 47,770,071 55,164,007 - - 105,896,512 161,060,519
Microcap Value Fund 898,938 16,761,465 17,660,403 - - 61,956,029 79,616,432
56
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
As of September 30, 2005, the following Fund had net capital loss carryforwards
subject to certain limitations on availability, to offset future net capital
gains, if any, as successor of a merger. To the extent that these carryforwards
are used to offset future capital gains, it is probable that the gains will not
be distributed to shareholders.
Capital Loss
Carryforward Expires
------------ -------
Large Cap Growth Fund $24,118,394 2008
9,673,722 2009
2,915,217 2010
- --------------------------------------------------------------------------------
8. MARKET TIMING
Tamarack strongly discourages attempts at market timing by Fund shareholders.
Each Fund charges a redemption fee of 2% of the value of the shares redeemed or
exchanged within 30 days of purchase, in addition to limiting the number of
exchanges that may be made between Funds to five (5) per calendar year. When
assessed, the redemption fee is deducted from the redemption proceeds and
retained by the Fund, not by Voyageur. This redemption fee is not charged in
cases where, for example, the redemption results from an automatic reinvestment
or asset re-allocation not specifically directed by the shareholder. Tamarack
also reserves the right to reject any Fund purchase order made by persons deemed
to be market timers. The Funds' prospectus contains a full description of
Tamarack's policies on market timing and/or excessive trading. For purposes of
the Financial Highlights, the impact from redemption fees paid to the Funds was
less than $0.01 per share. During the period ended March 31, 2006 the redemption
fees collected by each Fund were as follows:
Redemption Fees
---------------
Large Cap Growth Fund $ 20
Mid Cap Growth Fund 856
Small Cap Growth Fund 487
Enterprise Fund 677
Enterprise Small Cap Fund 362
Value Fund 288
Microcap Value Fund 865
- --------------------------------------------------------------------------------
9. SOFT DOLLARS
The term soft dollars generally refers to arrangements in which services other
than trade execution are received from a broker-dealer. Federal securities laws
permit a fund advisor to incur commission charges on behalf of a Fund that are
higher than another broker dealer would have charged if the advisor believes the
charges are reasonable in relation to the brokerage and research services
received. Voyageur and each sub-advisor, as applicable, have a fiduciary duty to
the shareholders of the Funds to seek the best execution price for all of the
Funds' securities transactions. Fund management believes that using soft dollars
to purchase brokerage and research services may, in certain cases, be in a
Fund's best interest. As of March 31, 2006 certain of the Funds used soft dollar
arrangements on a limited basis. Fund management continues to closely monitor
its current use of soft dollars, in addition to regulatory developments in this
area for any possible impact on Fund policies.
57
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
10. SUBSEQUENT EVENT
On May 8, 2006, Lance James, co-portfolio manager for the Tamarack Enterprise
Fund and portfolio manager for the Tamarack Enterprise Small Cap Fund, joined
Voyageur Asset Management, the Funds' advisor. Effective May 8, 2006, the
Tamarack Board of Trustees voted to terminate the sub-advisory agreement with
Oppenheimer Funds Institutional (OFI). (OFI had replaced Babson on April 1,
2006, as sub-advisor to the Tamarack Enterprise and Tamarack Enterprise Small
Cap Funds under an interim advisory agreement approved by the Board of
Trustees. OFI and Babson are affiliated companies both owned by Mass Mutual
Financial Group.) Under the previous sub-advisory agreements, Lance James had
been responsible for both the Tamarack Enterprise and Tamarack Enterprise Small
Cap Funds and will continue to have responsibility for portfolio management of
the Funds as an employee of Voyageur.
58
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Large Cap Growth Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS - 99.17%
CONSUMER DISCRETIONARY - 18.89%
43,680 Carnival Corp. (c) $ 2,069,122
45,500 Chico's FAS, Inc. (b) 1,849,120
44,420 E.W. Scripps Co. (The), 1,986,018
Class A
80,520 eBay, Inc. (b) 3,145,111
65,600 Home Depot, Inc. 2,774,880
48,020 Kohl's Corp. (b) (c) 2,545,540
83,810 McGraw-Hill Cos., 4,829,133
Inc. (The)
168,750 Staples, Inc. (c) 4,306,500
106,080 Starbucks Corp. (b) 3,992,851
------------
27,498,275
------------
CONSUMER STAPLES - 10.03%
75,090 PepsiCo, Inc. 4,339,451
72,300 Procter & Gamble Co. 4,165,926
(The)
94,880 Walgreen Co. 4,092,174
30,120 Whole Foods Market, 2,001,173
Inc. ------------
14,598,724
------------
ENERGY - 7.37%
61,800 Apache Corp. 4,048,518
42,450 EOG Resources, Inc. 3,056,400
93,130 Smith International, Inc. 3,628,345
------------
10,733,263
------------
FINANCIALS - 8.71%
81,650 AFLAC, Inc. 3,684,865
10,220 Chicago Mercantile 4,573,450
Exchange Holdings, Inc.
85,000 SLM Corp. 4,414,900
------------
12,673,215
------------
HEALTHCARE - 16.12%
52,130 Amgen, Inc. (b) 3,792,458
32,130 Express Scripts, 2,824,227
Inc. (b) (c)
49,170 Genzyme Corp. (b) 3,305,207
62,960 Medtronic, Inc. 3,195,220
64,890 Quest Diagnostics, Inc. 3,328,857
54,490 Stryker Corp. 2,416,087
28,270 WellPoint, Inc. (b) 2,188,946
35,760 Zimmer Holdings, Inc. (b) 2,417,376
------------
23,468,378
------------
INDUSTRIALS - 12.67%
83,980 Danaher Corp. (c) 5,336,929
134,810 General Electric Co. 4,688,692
55,030 United Parcel Service, 4,368,281
Inc., Class B (c)
69,850 United Technologies $ 4,049,205
Corp. ------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
18,443,107
------------
INFORMATION TECHNOLOGY - 21.99%
158,340 Adobe Systems, Inc. 5,529,233
280,510 Cisco Systems, Inc. (b) 6,078,651
68,440 Fiserv, Inc. (b) 2,912,122
109,990 Jabil Circuit, Inc. (b) 4,714,171
146,120 Microsoft Corp. 3,975,925
105,740 Paychex, Inc. 4,405,128
86,430 QUALCOMM, Inc. 4,374,222
------------
31,989,452
------------
MATERIALS - 3.39%
129,130 Ecolab, Inc. 4,932,766
------------
TOTAL COMMON STOCKS 144,337,180
(Cost $123,836,359) ------------
INVESTMENT COMPANIES - 0.94%
1,369,846 Wells Fargo Prime 1,369,846
Investment Money ------------
Market Fund
TOTAL INVESTMENT COMPANIES 1,369,846
(Cost $1,369,846) ------------
INVESTMENT OF CASH COLLATERAL FOR
SECURITIES ON LOAN - 9.37%
$13,635,787 Various Securities (see 13,635,787
Notes to Schedules of ------------
Portfolio Investments for
collateral information)
TOTAL INVESTMENT OF CASH 13,635,787
COLLATERAL FOR SECURITIES ON LOAN ------------
(Cost $13,635,787)
TOTAL INVESTMENTS 159,342,813
(Cost $138,841,992) (a) - 109.48%
Liabilities in excess of other assets - (13,800,927)
(9.48)% ------------
NET ASSETS - 100.00% $145,541,886
============
(a) See Note 7 for the tax cost of securities and the breakdown of unrealized
appreciation (depreciation).
(b) Non-income producing security.
(c) All or part of this security has been loaned as of March 31, 2006.
SEE NOTES TO FINANCIAL STATEMENTS.
59
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Mid Cap Growth Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS - 97.59%
CONSUMER DISCRETIONARY - 24.46%
60,000 Aeropostale, Inc. (b) $ 1,809,600
52,000 CDW Corp. (c) 3,060,200
69,000 Cheesecake Factory, 2,584,050
Inc. (b)
32,000 Chico's FAS, Inc. (b) 1,300,480
112,000 Coldwater Creek, 3,113,600
Inc. (b) (c)
44,000 Dick's Sporting Goods, 1,745,480
Inc. (b) (c)
103,000 Gentex Corp. (c) 1,798,380
32,000 Guitar Center, Inc. (b) 1,526,400
97,000 O'Reilly Automotive, 3,546,320
Inc. (b)
97,000 Petsmart, Inc. 2,729,580
100,000 SCP Pool Corp. 4,691,000
43,000 Tractor Supply Co. (b) 2,852,620
------------
30,757,710
------------
CONSUMER STAPLES - 1.43%
27,000 Whole Foods 1,793,880
Market, Inc. ------------
ENERGY - 4.69%
85,000 BJ Services Co. 2,941,000
76,000 Smith International, Inc. 2,960,960
------------
5,901,960
------------
FINANCIALS - 10.33%
7,000 Chicago Mercantile 3,132,500
Exchange Holdings, Inc.
101,000 Commerce Bancorp, 3,701,650
Inc. (c)
75,000 East West Bancorp, Inc. 2,891,250
13,500 Legg Mason, Inc. 1,691,955
19,000 Zions Bancorp. 1,571,870
------------
12,989,225
------------
HEALTHCARE - 18.30%
49,000 Biomet, Inc. 1,740,480
20,000 Express Scripts, 1,758,000
Inc. (b) (c)
31,080 Fisher Scientific 2,114,994
International, Inc. (b)
35,000 Invitrogen Corp. (b) (c) 2,454,550
82,000 Omnicare, Inc. (c) 4,509,180
42,000 Quest Diagnostics, Inc. 2,154,600
71,000 Varian Medical 3,987,360
Systems, Inc. (b)
151,000 VCA Antech, Inc. (b) 4,300,480
------------
23,019,644
------------
INDUSTRIALS - 24.58%
56,000 ChoicePoint, Inc. (b) (c) 2,506,000
30,000 Danaher Corp. (c) 1,906,500
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
71,000 Donaldson Co., Inc. $ 2,399,090
50,000 Expeditors International 4,319,500
of Washington, Inc.
100,000 Fastenal Co. (c) 4,734,000
37,000 Florida Rock 2,080,140
Industries, Inc.
44,000 Graco, Inc. 1,998,920
140,500 Knight Transportation, 2,774,875
Inc.
102,000 Roper Industries, Inc. 4,960,260
48,000 Stericycle, Inc. (b) 3,245,760
------------
30,925,045
------------
INFORMATION TECHNOLOGY - 13.80%
81,000 Cognos, Inc. (b) 3,150,900
31,000 DST Systems, Inc. (b) 1,796,140
70,000 FactSet Research 3,104,500
Systems, Inc.
86,000 Jabil Circuit, Inc. (b) 3,685,960
99,000 Microchip Technology, 3,593,700
Inc.
57,000 Plantronics, Inc. 2,019,510
------------
17,350,710
------------
TOTAL COMMON STOCKS 122,738,174
(Cost $94,282,908) ------------
INVESTMENT COMPANIES - 1.78%
2,236,115 Wells Fargo Prime 2,236,115
Investment Money ------------
Market Fund
TOTAL INVESTMENT COMPANIES 2,236,115
(Cost $2,236,115) ------------
INVESTMENT OF CASH COLLATERAL FOR
SECURITIES ON LOAN - 14.40%
$18,111,483 Various Securities (see 18,111,483
Notes to Schedules of ------------
Portfolio Investments for
collateral information)
TOTAL INVESTMENT OF CASH 18,111,483
COLLATERAL FOR SECURITIES ON LOAN ------------
(Cost $18,111,483)
TOTAL INVESTMENTS 143,085,772
(Cost $114,630,506) (a) - 113.77% ------------
Liabilities in excess of other assets - (17,315,137)
(13.77)% ------------
NET ASSETS - 100.00% $125,770,635
============
(a) See Note 7 for the tax cost of securities and the breakdown of unrealized
appreciation (depreciation).
(b) Non-income producing security.
(c) All or part of this security has been loaned as of March 31, 2006.
SEE NOTES TO FINANCIAL STATEMENTS.
60
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Small Cap Growth Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS - 97.12%
CONSUMER DISCRETIONARY - 14.68%
5,100 A.C. Moore Arts & $ 93,840
Crafts, Inc. (b)
4,300 Catalina Marketing Corp. 99,330
7,250 Fred's, Inc. 96,135
9,200 Gentex Corp. 160,632
5,400 Hot Topic, Inc. (b) 78,300
2,900 K-Swiss, Inc. 87,406
10,000 Mikohn Gaming 95,700
Corp. (b)
3,400 P.F. Chang's China Bistro, 167,586
Inc. (b)
7,400 RARE Hospitality 257,742
International, Inc. (b)
8,600 Shuffle Master, Inc. (b) 307,364
5,500 Sonic Corp. (b) 193,215
2,600 Tractor Supply Co. (b) 172,484
------------
1,809,734
------------
CONSUMER STAPLES - 3.32%
3,400 Peet's Coffee & Tea, 102,000
Inc. (b)
8,800 United Natural Foods, 307,736
Inc. (b) ------------
409,736
------------
ENERGY - 4.41%
2,300 Berry Petroleum Co., 157,435
Class A
4,100 Oceaneering 234,930
International, Inc. (b)
3,500 Remington Oil & Gas 151,270
Corp. (b) ------------
543,635
------------
FINANCIALS - 13.58%
7,500 BISYS Group, Inc. 101,100
(The) (b)
7,200 HCC Insurance Holdings, 250,560
Inc.
5,200 Hilb, Rogal & Hamilton 214,344
Co.
4,800 Investment Technology 239,040
Group, Inc. (b)
3,700 Investors Financial 173,419
Services Corp.
5,100 Philadelphia 174,114
Consolidated Holding
Corp. (b)
9,900 Raymond James 292,644
Financial, Inc.
2,900 SEI Investments Co. 117,537
1,900 Wintrust Financial Corp. 110,523
------------
1,673,281
------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
HEALTHCARE - 20.86%
4,100 ArthroCare Corp. (b) $ 196,062
2,600 Biosite, Inc. (b) 135,018
3,300 Cooper Cos., Inc. (The) 178,299
9,600 HealthExtras, Inc. (b) 338,880
2,500 IDEXX Laboratories, 215,900
Inc. (b)
10,950 K-V Pharmaceutical Co., 264,114
Class A (b)
6,000 Kensey Nash Corp. (b) 171,600
5,600 Kyphon, Inc. (b) 208,320
6,600 Pharmaceutical Product 228,426
Development, Inc.
2,200 SonoSite, Inc. (b) 89,408
3,700 Sunrise Senior Living, 144,189
Inc. (b)
3,300 SurModics, Inc. (b) 116,688
4,600 Taro Pharmaceutical 64,124
Industries Ltd. (b)
6,400 VistaCare, Inc. (b) 99,200
3,300 Young Innovations, Inc. 120,516
------------
2,570,744
------------
INDUSTRIALS - 17.37%
2,600 Actuant Corp., Class A 159,172
5,700 DRS Technologies, Inc. 312,759
7,200 EGL, Inc. (b) 324,000
13,025 Knight Transportation, 257,244
Inc.
5,500 Mercury Computer 89,100
Systems, Inc. (b)
3,700 NuCo2, Inc. (b) 117,438
6,500 Simpson Manufacturing 281,450
Co., Inc.
3,300 Stericycle, Inc. (b) 223,146
3,700 Teleflex, Inc. 265,031
5,800 Tetra Tech, Inc. (b) 110,722
------------
2,140,062
------------
INFORMATION TECHNOLOGY - 20.55%
4,600 Actel Corp. (b) 73,324
3,600 Acxiom Corp. 93,024
6,600 ANSYS, Inc. (b) 357,390
1,800 Black Box Corp. 86,490
4,800 Cymer, Inc. (b) 218,112
4,800 Digital River, Inc. (b) 209,328
2,500 F5 Networks, Inc. (b) 181,225
5,300 Global Payments, Inc. 280,953
4,600 Kronos, Inc. (b) 171,994
4,500 Open Text Corp. (b) 73,935
5,900 Photronics, Inc. (b) 110,684
3,400 ScanSource, Inc. (b) 205,394
6,900 TriQuint Semiconductor, 33,948
Inc. (b)
3,500 WebEx Communications, 117,845
Inc. (b)
61
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Small Cap Growth Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
7,500 Wind River Systems, $ 93,375
Inc. (b)
5,050 Zebra Technologies 225,836
Corp., Class A (b) ------------
2,532,857
------------
MATERIALS - 2.35%
5,800 Spartech Corp. 139,200
5,400 Valspar Corp. 150,498
------------
289,698
------------
TOTAL COMMON STOCKS 11,969,747
(Cost $8,785,060) ------------
INVESTMENT COMPANIES - 2.95%
363,107 Wells Fargo Prime 363,107
Investment Money ------------
Market Fund
TOTAL INVESTMENT COMPANIES 363,107
(Cost $363,107) ------------
TOTAL INVESTMENTS 12,332,854
(Cost $9,148,167) (a) - 100.07%
Liabilities in excess of other assets - (8,993)
(0.07)% ------------
NET ASSETS - 100.00% $ 12,323,861
============
(a) See Note 7 for the tax cost of securities and the breakdown of unrealized
appreciation (depreciation).
(b) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS.
62
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Enterprise Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS - 94.27%
CONSUMER DISCRETIONARY - 16.53%
229,400 Carmike Cinemas, $ 5,535,422
Inc. (c)
669,000 Casual Male Retail 6,516,060
Group, Inc. (b) (c)
256,800 CDI Corp. 7,388,136
680,100 Hancock Fabrics, Inc. (c) 2,475,564
300,100 Libbey, Inc. 2,124,708
248,000 Mac-Gray Corp. (b) 2,941,280
450,400 Movado Group, Inc. 10,395,232
1,235,900 Regent Communications, 5,697,499
Inc. (b)
11,300 Rowe Furniture Corp. (b) 16,385
410,393 Rush Enterprises, Inc., 7,214,709
Class A (b)
123,789 Standard Parking 3,449,999
Corp. (b)
243,700 Steinway Musical 7,852,014
Instruments, Inc. (b)
131,700 Thomas Nelson, Inc. 3,852,225
------------
65,459,233
------------
CONSUMER STAPLES - 1.01%
114,600 United Natural Foods, 4,007,562
Inc. (b) (c) ------------
ENERGY - 5.41%
174,300 Goodrich Petroleum 4,706,100
Corp. (b) (c)
272,000 Gulf Island Fabrication, 6,438,240
Inc.
218,800 Tetra Technologies, 10,292,352
Inc. (b) ------------
21,436,692
------------
FINANCIALS - 17.45%
246,500 ASTA Funding, Inc. (c) 8,198,591
87,400 Bank of the Ozarks, 3,190,100
Inc. (c)
138,100 Boston Private Financial 4,666,399
Holdings, Inc.
120,009 Capital Corp of the West 4,406,730
96,259 Cobiz, Inc. (c) 1,982,935
149,472 Dearborn Bancorp, 3,363,120
Inc. (b)
168,800 FirstCity Financial 2,010,408
Corp. (b)
189,096 Hanmi Financial Corp. 3,415,074
211,200 Harrington West 3,423,552
Financial Group, Inc.
114,000 LaSalle Hotel Properties 4,674,000
90,968 Mercantile Bank Corp. 3,556,849
105,193 MetroCorp Bancshares, 2,840,211
Inc.
54,900 National Interstate Corp. 1,194,075
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
141,560 Northrim Bancorp, Inc. $ 3,397,440
389,666 Sanders Morris Harris 6,250,243
Group, Inc. (c)
151,554 Sterling Financial 4,395,066
Corp. (c)
163,600 SWS Group, Inc. 4,278,140
96,012 Taylor Capital Group, Inc. 3,762,710
------------
69,005,643
------------
HEALTHCARE - 5.15%
120,900 Landauer, Inc. 6,071,598
424,275 Penwest Pharmaceuticals 9,202,525
Co. (b) (c)
140,624 Young Innovations, Inc. 5,135,588
------------
20,409,711
------------
INDUSTRIALS - 16.85%
365,900 Allied Defense Group, 8,031,505
Inc. (b) (c)
240,525 Columbus McKinnon 6,477,338
Corp. (b)
166,400 Dixie Group, Inc. 2,489,344
(The) (b)
357,000 EDO Corp. (c) 11,013,450
79,500 ESCO Technologies, 4,026,675
Inc. (b)
17,000 Freightcar America, Inc. 1,081,200
144,500 Herley Industries, Inc. (b) 3,017,160
398,837 LSI Industries, Inc. 6,796,182
594,763 Modtech Holdings, 5,204,176
Inc. (b) (c)
207,800 Old Dominion Freight 5,600,210
Line, Inc. (b)
325,010 Quixote Corp. (c) 8,043,998
170,300 SCS Transportation, 4,957,433
Inc. (b) ------------
66,738,671
------------
INFORMATION TECHNOLOGY - 15.85%
175,000 Comtech 5,104,750
Telecommunications
Corp. (b)
306,600 Covansys Corp. (b) 5,270,454
382,500 EMS Technologies, 6,896,475
Inc. (b)
415,300 Fargo Electronics, Inc. (b) 7,022,723
677,732 HMS Holdings Corp. (b) 5,930,155
576,300 Hypercom Corp. (b) 5,359,590
435,500 LaBarge, Inc. (b) 6,510,725
308,933 Printronix, Inc. 4,773,015
187,800 Spectrum Control, 1,536,204
Inc. (b)
818,081 Stellent, Inc. 9,702,441
423,600 Tyler Technologies, 4,659,600
Inc. (b) ------------
62,766,132
------------
63
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Enterprise Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
MATERIALS - 10.28%
236,200 Ennis Business $ 4,605,900
Forms, Inc.
719,000 Intertape Polymer Group, 6,183,400
Inc. (b)
432,300 NN, Inc. 5,580,993
412,250 Penford Corp. 6,628,980
693,300 U.S. Concrete, Inc. (b) 10,025,118
299,688 Universal Stainless & 7,701,982
Alloy Products, Inc. (b) ------------
40,726,373
------------
OTHER - 4.08%
496,200 ABM Industries, Inc. 9,512,154
543,400 Remedytemp, Inc. (b) 6,656,650
------------
16,168,804
------------
UTILITIES - 1.66%
181,400 Central Vermont Public 3,847,494
Service Corp.
104,800 Unitil Corp. 2,736,328
------------
6,583,822
------------
TOTAL COMMON STOCKS 373,302,643
(Cost $254,486,577) ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 1.69%
$ 6,700,000 Federal Home Loan 6,697,521
Bank, 4.44%, 4/3/06 (d) ------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS 6,697,521
(Cost $6,698,347) ------------
INVESTMENT COMPANIES - 3.96%
15,676,311 Wells Fargo Prime 15,676,311
Investment Money ------------
Market Fund
TOTAL INVESTMENT COMPANIES 15,676,311
(Cost $15,676,311) ------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
INVESTMENT OF CASH COLLATERAL FOR SECURITIES
ON LOAN - 14.05%
$55,643,507 Various Securities (see $ 55,643,507
Notes to Schedules of ------------
Portfolio Investments for
collateral information)
TOTAL INVESTMENT OF CASH 55,643,507
COLLATERAL FOR SECURITIES ON LOAN ------------
(Cost $55,643,507)
TOTAL INVESTMENTS 451,319,982
(Cost $332,504,742) (a) - 113.97%
Liabilities in excess of other assets - (55,333,494)
(13.97)% ------------
NET ASSETS - 100.00% $395,986,488
============
(a) See Note 7 for the tax cost of securities and the breakdown of unrealized
appreciation (depreciation).
(b) Non-income producing security.
(c) All or part of this security has been loaned as of March 31, 2006.
(d) Rate represents the effective yield at purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
64
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Enterprise Small Cap Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS - 98.23%
CONSUMER DISCRETIONARY - 28.95%
40,550 ADVO, Inc. $ 1,297,600
17,700 Alberto-Culver Co., 782,871
Class B
23,800 Big 5 Sporting Goods 466,004
Corp.
29,600 BJ's Wholesale Club, 932,696
Inc. (b)
127,100 Casual Male Retail 1,237,954
Group, Inc. (b) (c)
44,300 CDI Corp. 1,274,511
155,100 Enesco Group, Inc. (b) (c) 314,853
45,800 Gardner Denver, Inc. (b) 2,986,160
92,100 Hancock Fabrics, Inc. (c) 335,244
47,250 Men's Wearhouse, Inc. 1,698,165
130,800 Movado Group, Inc. (c) 3,018,864
4,100 Red Robin Gourmet 193,520
Burgers, Inc. (b) (c)
47,200 Salem Communications 708,472
Corp. (b)
26,825 SCP Pool Corp. 1,258,361
42,500 Source Interlink Cos., 484,500
Inc. (b) (c)
7,900 Sports Authority, Inc. 291,510
(The) (b) (c)
79,400 Stein Mart, Inc. 1,383,148
64,400 Steinway Musical 2,074,968
Instruments, Inc. (b)
67,500 Stride Rite Corp. 977,400
------------
21,716,801
------------
CONSUMER STAPLES - 1.97%:
90,400 Smart & Final, Inc. (b) (c) 1,481,656
------------
ENERGY - 1.97%:
39,400 Basic Energy Services, 1,174,120
Inc. (b)
41,000 Grey Wolf, Inc. (b) (c) 305,040
------------
1,479,160
------------
FINANCIALS - 15.58%:
158,300 Ashford Hospitality Trust, 1,962,919
Inc.
36,200 ASTA Funding, Inc. (c) 1,204,012
55,808 Cash America 1,675,356
International, Inc.
34,268 Commerce Bancorp, 1,255,922
Inc. (c)
22,000 Commercial Capital 309,320
Bancorp, Inc.
22,350 Delphi Financial Group, 1,153,931
Inc., Class A
12,100 GB&T Bancshares, Inc. 270,435
16,700 Pro-Assurance Corp. (b) 868,400
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
11,400 Scottish Annuity & Life $ 282,834
Holdings Ltd.
9,300 SL Green Realty Corp. (c) 943,950
8,961 Sun Bancorp, Inc. (b) 174,740
16,100 TriCo Bancshares 455,952
26,200 UCBH Holdings, Inc. (c) 495,704
4,800 Union Bankshares Corp. 219,408
9,259 Western Sierra Bancorp 419,803
------------
11,692,686
------------
HEALTHCARE - 10.14%:
74,900 Angiotech 1,108,520
Pharmaceuticals,
Inc. (b) (c)
46,900 Inverness Medical 1,347,437
Innovations, Inc. (b)
55,602 Polymedica Corp. 2,355,300
105,475 PSS World Medical, 2,034,613
Inc. (b)
19,500 Respironics, Inc. (b) 758,745
------------
7,604,615
------------
INDUSTRIALS - 16.01%:
30,600 Applied Films Corp. (b) 594,558
19,900 Arkansas Best Corp. (c) 778,488
46,800 Blount International, 753,948
Inc. (b)
37,900 Carlisle Co. 3,100,220
73,500 Comstock Homebuilding 809,235
Cos., Inc., Class A (b) (c)
15,500 Gehl Co. (b) 513,360
14,600 Manitowoc Co., Inc. 1,330,790
(The)
58,400 Paxar Corp. (b) 1,142,888
5,700 Roper Industries, Inc. 277,191
39,500 Wabtec Corp. 1,287,700
39,200 Watts Water 1,424,528
Technologies, Inc., ------------
Class A
12,012,906
------------
INFORMATION TE CHNOLOGY - 7.41%:
71,600 Aeroflex, Inc. (b) 983,068
67,100 Aspen Technology, 848,815
Inc. (b)
25,100 Benchmark Electronics, 962,585
Inc. (b) (c)
84,000 C&D Technologies, 776,160
Inc. (c)
29,300 JDA Software Group, 423,092
Inc. (b)
1,100 Keithley Instruments, Inc. 16,896
9,400 ScanSource, Inc. (b) 567,854
144,400 Skyworks Solutions, 980,476
Inc. (b) ------------
5,558,946
------------
65
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Enterprise Small Cap Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
MATERIALS - 13.80%:
55,100 ElkCorp $ 1,859,625
99,100 Hercules, Inc. (b) 1,367,580
201,800 Interface, Inc. (b) 2,786,858
157,300 Intertape Polymer Group, 1,352,780
Inc. (b)
35,900 Koppers Holdings, Inc. 705,435
7,587 Mohawk Industries 612,423
Co. (b)
69,500 Spartech Corp. 1,668,000
------------
10,352,701
------------
TELECOMMUNICATION SERVICES - 0.72%:
67,200 Premiere Global Services, 540,960
Inc. (b) ------------
UTILITIES - 1.68%:
36,000 Energen Corp. 1,260,000
------------
TOTAL COMMON STOCKS 73,700,431
(Cost $45,984,047) ------------
INVESTMENT COMPANIES - 1.44%:
1,081,018 Wells Fargo Prime 1,081,018
Investment Money ------------
Market Fund
TOTAL INVESTMENT COMPANIES 1,081,018
(Cost $1,081,018) ------------
INVESTMENT OF CASH COLLATERAL FOR SECURITIES
ON LOAN - 14.96%:
$11,226,790 Various Securities (see 11,226,790
Notes to Schedules of ------------
Portfolio Investments for
collateral information)
TOTAL INVESTMENT OF CASH COLLATERAL 11,226,790
FOR SECURITIES ON LOAN ------------
(Cost $11,226,790)
TOTAL INVESTMENTS 86,008,239
(Cost $58,291,855) (a) - 114.63%
Liabilities in excess of other assets - (10,980,214)
(14.63)% ------------
NET ASSETS - 100.00% $ 75,028,025
============
(a) See Note 7 for the tax cost of securities and the breakdown of unrealized
appreciation (depreciation).
(b) Non-income producing security.
(c) All or part of this security has been loaned as of March 31, 2006.
SEE NOTES TO FINANCIAL STATEMENTS.
66
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Value Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS - 97.58%:
CONSUMER DISCRETIONARY - 11.28%:
111,330 Altria Group, Inc. $ 7,888,843
119,770 CBS Corp., Class B 2,872,085
100,000 Johnson Controls, Inc. 7,593,000
214,850 Limited Brands, Inc. 5,255,231
110,000 McDonald's Corp. 3,779,600
118,970 Viacom, Inc., Class B (b) 4,616,036
117,720 Walt Disney Co. (The) 3,283,211
------------
35,288,006
------------
CONSUMER STAPLES - 7.84%:
104,200 Colgate-Palmolive Co. 5,949,820
140,100 CVS Corp. 4,184,787
115,360 Diageo PLC ADR (c) 7,317,285
160,980 Kellogg Co. 7,089,559
------------
24,541,451
------------
ENERGY - 11.58%:
109,132 BP PLC ADR 7,523,560
118,500 Chevron Corp. 6,869,445
169,500 Exxon Mobil Corp. 10,315,770
70,000 Nabors Industries Ltd. (b) 5,010,600
70,440 Occidental Petroleum 6,526,266
Corp. ------------
36,245,641
------------
FINANCIALS - 29.79%:
91,800 AFLAC, Inc. 4,142,934
96,500 Allstate Corp. 5,028,615
159,700 American Express Co. 8,392,235
168,840 American International 11,158,637
Group, Inc.
181,150 Bank of America Corp. 8,249,571
237,366 Citigroup, Inc. 11,210,797
59,400 Freddie Mac 3,623,400
170,900 Morgan Stanley 10,735,938
129,100 SLM Corp. 6,705,454
250,000 U.S. Bancorp (c) 7,625,000
150,002 Wachovia Corp. (c) 8,407,612
124,660 Wells Fargo & Co. 7,962,034
------------
93,242,227
------------
HEALTHCARE - 6.81%:
194,540 Merck & Co., Inc. (c) 6,853,644
325,140 Pfizer, Inc. 8,102,489
154,640 Teva Pharmaceutical 6,368,075
Industries Ltd. ADR ------------
21,324,208
------------
INDUSTRIALS - 10.42%:
90,000 Burlington Northern 7,499,700
Santa Fe Corp.
108,200 General Electric Co. 3,763,196
118,670 Rockwell Collins, Inc. 6,687,055
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
114,800 United Parcel Service, $ 9,112,824
Inc., Class B (c)
156,940 Waste Management, Inc. 5,539,982
------------
32,602,757
------------
INFORMATION TECHNOLOGY - 11.91%:
71,400 Apple Computer, Inc. (b) 4,478,208
61,000 Best Buy Co., Inc. 3,411,730
200,400 Cisco Systems, Inc. (b) 4,342,668
220,900 Hewlett-Packard Co. 7,267,610
107,260 International Business 8,845,732
Machines Corp
142,800 Microsoft Corp. 3,885,588
300,000 Symantec Corp. (b) 5,049,000
------------
37,280,536
------------
TELECOMMUNICATION SERVICES - 4.39%:
216,670 BCE, Inc. 5,213,080
250,300 Verizon Communications, 8,525,217
Inc. ------------
13,738,297
------------
UTILITIES - 3.55%:
47,500 Entergy Corp. 3,274,650
148,400 Exelon Corp. 7,850,360
------------
11,125,010
------------
TOTAL COMMON STOCKS 305,388,133
(Cost $207,319,122) ------------
INVESTMENT COMPANIES - 3.74%:
11,692,024 Wells Fargo Prime 11,692,024
Investment Money ------------
Market Fund
TOTAL INVESTMENT COMPANIES 11,692,024
(Cost $11,692,024) ------------
INVESTMENT OF CASH COLLATERAL FOR SECURITIES
ON LOAN - 6.76%:
$21,145,029 Various Securities (see 21,145,029
Notes to Schedules of ------------
Portfolio Investments for
collateral information)
TOTAL INVESTMENT OF CASH COLLATERAL 21,145,029
FOR SECURITIES ON LOAN ------------
(Cost $21,145,029)
67
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
TOTAL INVESTMENTS $338,225,186
(Cost $240,156,175) (a) - 108.07%
Liabilities in excess of other assets - (25,267,928)
(8.07)% ------------
NET ASSETS - 100.00% $312,957,258
============
(a) See Note 7 for the tax cost of securities and the breakdown of unrealized
appreciation (depreciation).
(b) Non-income producing security.
(c) All or part of this security has been loaned as of March 31, 2006.
Abbreviations used are defined below:
ADR - American Depositary Receipt
SEE NOTES TO FINANCIAL STATEMENTS.
68
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Microcap Value Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
COMMON STOCKS - 97.95%
CONSUMER DISCRETIONARY - 24.97%
70,000 Aftermarket Technology $ 1,582,700
Corp. (b)
2,800 Allen Organ Co., Class B 156,100
29,800 Ambassadors 541,168
International, Inc.
48,500 AMERCO (b) 4,800,045
34,500 America's Car Mart, 741,750
Inc. (b)
15,000 AMREP Corp. 592,500
21,400 Andersons, Inc. (The) 1,674,122
60,000 Asbury Automotive 1,183,200
Group, Inc. (b)
40,000 Ashworth, Inc. (b) 397,200
169,000 BB Holdings Ltd. 777,400
25,000 Benihana, Inc., 773,000
Class A (b)
22,000 Big Dog Holdings, 256,740
Inc. (b)
69,000 Bluegreen Corp. (b) 912,180
45,000 Bon-Ton Stores, Inc. (The) 1,455,750
46,000 Books-A-Million, Inc. 529,460
15,127 Bowl America, Inc., 220,854
Class A
61,000 Charlotte Russe Holding, 1,305,400
Inc. (b)
39,000 Consolidated Graphics, 2,032,680
Inc. (b)
37,000 Cornell Cos., Inc. (b) 534,280
95,000 CSK Auto Corp. (b) 1,317,650
32,000 CSS Industries, Inc. 1,047,680
32,000 Cutter & Buck, Inc. 384,960
40,000 Deb Shops, Inc. 1,188,000
22,000 Dominion Homes, 216,920
Inc. (b)
13,500 Duckwall-ALCO Stores, 318,735
Inc. (b)
83,000 Elizabeth Arden, Inc. (b) 1,935,560
16,500 Emak Worldwide, Inc. (b) 137,610
20,800 Exponent, Inc. (b) 658,320
117,000 Finish Line, Inc. (The), 1,924,650
Class A
26,000 Finlay Enterprises, Inc. (b) 266,760
95,000 First Cash Financial 1,899,050
Services, Inc. (b)
48,000 Friedman's, Inc., 0
Class A (c) (e)
2,250 FRMO Corp. (b) 8,663
36,000 Gaiam, Inc. (b) 579,960
26,000 Hampshire Group Ltd. (b) 531,440
40,000 Hartmarx Corp. (b) 356,400
21,000 Hastings Entertainment, 127,050
Inc. (b)
31,000 Hooker Furniture Corp. 585,900
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
75,000 Isle of Capri Casinos, $ 2,496,000
Inc. (b)
15,000 J. Alexander's Corp. 121,500
73,000 JAKKS Pacific, Inc. (b) 1,952,020
93,657 K2, Inc. (b) 1,175,395
12,807 Knape & Vogt 237,314
Manufacturing Co.
12,100 Lakeland Industries, 248,050
Inc. (b)
39,000 Lenox Group, Inc. (b) 510,900
7,600 Liberty Homes, Inc., 43,320
Class A (b)
31,000 Lifetime Brands, Inc. 873,890
76,000 Lightbridge, Inc. (b) 843,600
37,800 M/I Homes, Inc. 1,776,600
36,000 Mac-Gray Corp. (b) 426,960
43,000 MarineMax, Inc. (b) 1,441,360
7,500 McRae Industries, Inc., 84,375
Class A
84,000 Medical Staffing Network 437,640
Holdings, Inc. (b)
37,500 Monro Muffler Brake, 1,392,750
Inc.
69,400 Movado Group, Inc. 1,601,752
22,000 National R.V. Holdings, 140,800
Inc. (b)
36,900 Navigant International, 453,132
Inc. (b)
18,300 Nobel Learning 175,314
Communities, Inc.
10,300 Nobility Homes, Inc. 255,028
10,000 P & F Industries, Inc., 147,000
Class A (b)
60,000 Palm Harbor Homes, 1,285,800
Inc. (b)
73,000 PC Connection, Inc. (b) 420,480
42,000 PDI, Inc. (b) 490,140
24,500 Perry Ellis International, 554,435
Inc. (b)
83,000 Pinnacle Entertainment, 2,338,110
Inc. (b)
37,000 Red Lion Hotels Corp. (b) 492,100
37,550 Rex Stores Corp. (b) 565,879
11,300 S&K Famous Brands, 215,830
Inc. (b)
36,000 Shoe Carnival, Inc. (b) 899,280
75,000 Source Interlink Cos., 855,000
Inc. (b)
31,500 Sport Chalet, Inc., 235,935
Class A (b)
4,500 Sport Chalet, Inc., 35,199
Class B (b)
111,000 Stein Mart, Inc. 1,933,620
26,000 Steinway Musical 837,720
Instruments, Inc. (b)
66,000 Stoneridge, Inc. (b) 359,040
69
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Microcap Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
21,000 Superior Uniform Group, $ 231,210
Inc.
43,000 Syms Corp. 645,000
15,000 Tandy Brands 154,500
Accessories, Inc.
78,000 Velcro Industries NV 1,150,500
33,400 Weyco Group, Inc. 751,500
------------
65,237,815
------------
CONSUMER STAPLES - 3.52%
30,000 American Italian Pasta 187,800
Co.
9,300 Cagle's, Inc., Class A (b) 64,914
13,700 CPAC, Inc. 55,965
42,000 Farmer Brothers Co. 936,600
2,700 Foodarama 140,400
Supermarkets, Inc. (b)
67,000 Ingles Markets, Inc., 1,193,940
Class A
53,000 M & F Worldwide 756,840
Corp. (b)
20,425 Marsh Supermarkets, 175,655
Inc., Class A
28,125 Marsh Supermarkets, 232,031
Inc., Class B
44,000 MGP Ingredients, Inc. 712,800
35,000 Nash-Finch Co. 1,046,500
70,000 National Beverage Corp. 809,900
37,000 Natures Sunshine 462,500
Products, Inc.
69,000 Omega Protein Corp. (b) 393,990
52,575 Sanderson Farms, Inc. 1,177,680
2,700 Scope Industries 188,460
52,000 Spartan Stores, Inc. 663,000
------------
9,198,975
------------
ENERGY - 3.74%
40,000 Callon Petroleum Co. (b) 840,800
46,500 Dril-Quip, Inc. (b) 3,294,525
33,756 Enbridge Energy 1,440,031
Management, LLC (b)
34,000 Gulf Island Fabrication, 804,780
Inc.
40,000 Lufkin Industries, Inc. 2,217,600
43,000 NATCO Group, Inc., 1,165,300
Class A (b) ------------
9,763,036
------------
FINANCIALS - 20.28%
105,000 American Equity 1,505,700
Investment Life Holding
Co.
19,000 American Safety 317,490
Insurance Holdings
Ltd. (b)
30,000 Ameris Bancorp 697,800
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
17,000 Baldwin & Lyons, Inc., $ 451,350
Class B
14,500 Bancinsurance Corp. (b) 89,900
31,000 Banner Corp. 1,054,000
11,300 Brantley Capital Corp. (b) 31,075
31,000 California First National 448,260
Bancorp
21,000 Camco Financial Corp. 301,770
17,000 Capital Crossing Bank (b) 541,620
38,000 Capitol Bancorp Ltd. 1,776,500
99,000 Ceres Group, Inc. (b) 546,480
25,000 Citizens South Banking 317,000
Corp.
48,150 Citizens, Inc. (b) 248,454
123,000 Credit Acceptance 2,890,499
Corp. (b)
49,333 Donegal Group, Inc., 1,287,098
Class A
9,333 Donegal Group, Inc., 219,326
Class B
33,000 DVI, Inc. (c) 33
70,000 Electro Rent Corp. (b) 1,190,000
20,000 EMC Insurance Group, 557,400
Inc.
32,725 First Albany Cos., Inc. (b) 184,242
40,000 First Financial Corp. 1,192,000
39,181 First Indiana Corp. 1,093,150
54,000 First Merchants Corp. 1,432,080
14,000 First PacTrust Bancorp, 420,700
Inc.
38,000 First Place Financial Corp. 942,400
42,000 First State Bancorp 1,115,520
25,000 FirstCity Financial 297,750
Corp. (b)
27,000 FPIC Insurance Group, 1,020,600
Inc. (b)
13,000 Home Federal Bancorp 350,740
79,000 Hub International Ltd. 2,213,580
8,300 Investors Title Co. 356,319
24,000 Jefferson Bancshares, Inc. 323,760
37,000 KHD Humboldt Wedag 917,230
International Ltd. (b)
11,000 LSB Corp. 197,450
37,000 Mass Financial Corp., 77,700
Class A (b)
19,000 Matrix Bancorp, Inc. (b) 418,000
9,000 Mego Financial Corp. (c) 1
5,000 Merchants Group, Inc. 150,750
174,000 MFA Mortgage 1,104,900
Investments, Inc.
49,800 Midland Co. 1,742,004
12,000 MutualFirst Financial, Inc. 248,880
5,300 National Security Group, 92,856
Inc. (The)
6,000 National Western Life 1,393,740
Insurance Co., Class A
70
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Microcap Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
36,400 Navigators Group, Inc. $ 1,805,440
(The) (b)
18,000 Pacific Mercantile 357,840
Bancorp (b)
85,000 Partners Trust Financial 1,013,200
Group, Inc.
38,000 PennFed Financial 728,460
Services, Inc.
29,000 Peoples Bancorp, Inc. 870,000
65,000 PMA Capital Corp., 661,700
Class A (b)
19,000 Provident Financial 619,400
Holdings, Inc.
38,500 PXRE Group Ltd. 125,895
13,000 RTW, Inc. (b) 137,410
50,000 Sanders Morris Harris 802,000
Group, Inc.
37,000 Simmons First National 1,101,120
Corp., Class A
36,100 Sizeler Property Investors, 532,836
Inc.
32,000 Southern Community 294,080
Financial Corp.
47,000 Stewart Information 2,212,760
Services Corp.
30,666 Stifel Financial Corp. (b) 1,339,184
49,000 SWS Group, Inc. 1,281,350
54,000 TierOne Corp. 1,833,300
24,000 Triad Guaranty, Inc. (b) 1,125,600
32,381 United America 741,525
Indemnity Ltd. (b)
21,000 United Capital Corp. (b) 522,480
97,000 United Community 1,175,640
Financial Corp.
56,500 United Fire & Casualty 1,858,850
Co.
4,600 Ziegler Cos., Inc. 98,900
------------
52,997,077
------------
HEALTHCARE - 5.01%
31,000 Air Methods Corp. (b) 915,740
100,000 Allied Healthcare 485,000
International, Inc. (b)
17,000 Allou Health Care, Inc., 17
Class A (c) (e)
11,000 American Shared 74,250
Hospital Services
77,000 BioScrip, Inc. (b) 555,170
44,000 Carriage Services, Inc. (b) 211,200
39,000 Cholestech Corp. (b) 508,170
52,000 DJ Orthopedics, Inc. (b) 2,067,520
28,000 E-Z-EM, Inc. (b) 626,920
57,422 Encore Medical Corp. (b) 294,001
74,250 Healthcare Services 1,585,980
Group, Inc.
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
82,000 HealthTronics Surgical $ 678,140
Services, Inc. (b)
13,000 IntegraMed America, 150,150
Inc. (b)
7,100 Kewaunee Scientific 61,841
Corp.
30,000 Lannett Co., Inc. (b) 225,900
43,500 Matria Healthcare, 1,651,260
Inc. (b)
90,000 Option Care, Inc. 1,272,600
20,000 Pediatric Services of 281,000
America, Inc. (b)
62,000 Res-Care, Inc. (b) 1,139,560
29,000 Synovis Life Technologies, 296,960
Inc. (b) ------------
13,081,379
------------
INDUSTRIALS - 13.75%
24,000 Alamo Group, Inc. 531,360
21,125 Astronics Corp. (b) 284,976
80,500 Aviall, Inc. (b) 3,065,440
37,000 Blue Earth Refineries, 55,500
Inc. (b)
34,800 Cascade Corp. 1,839,180
2,800 Chicago Rivet & Machine 55,160
Co.
40,000 CompX International, 646,000
Inc.
42,000 Covenant Transport, Inc., 613,200
Class A (b)
18,000 Cronos Group (The) 219,600
29,000 Ducommun, Inc. (b) 643,800
50,400 EDO Corp. 1,554,840
50,000 Excel Maritime Carriers 489,000
Ltd. (b)
35,000 Frozen Food Express 365,750
Industries, Inc. (b)
24,900 Gehl Co. (b) 824,688
25,750 Hardinge, Inc. 414,318
70,000 HEICO Corp. 2,218,300
80,900 HEICO Corp., Class A 2,202,907
20,000 Industrial Distribution 169,000
Group, Inc. (b)
17,000 International Shipholding 261,800
Corp. (b)
31,900 Interpool, Inc. 644,380
19,000 Jinpan International Ltd. 157,130
12,000 Key Technology, Inc. (b) 146,280
47,000 Knightsbridge Tankers 1,177,820
Ltd.
37,000 Ladish Co., Inc. (b) 1,071,890
51,750 LSI Industries, Inc. 881,820
58,000 MAIR Holdings, Inc. (b) 271,440
23,000 Maritrans, Inc. 561,890
58,875 Marten Transport Ltd. (b) 1,065,049
33,088 Met-Pro Corp. 438,085
71
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Microcap Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
41,000 Modtech Holdings, $ 358,750
Inc. (b)
86,812 Old Dominion Freight 2,339,583
Line, Inc. (b)
33,100 P.A.M. Transportation 815,915
Services, Inc. (b)
14,600 PHI, Inc. (b) 499,612
30,000 Powell Industries, Inc. (b) 653,400
8,000 Q.E.P. Co., Inc. (b) 91,680
4,600 Quipp, Inc. 50,554
40,000 R&B, Inc. (b) 410,000
96,000 RailAmerica, Inc. (b) 1,023,360
42,000 Robbins & Myers, Inc. 907,200
32,000 Standex International 1,013,120
Corp.
3,201 Stantec, Inc. (b) 118,405
34,000 Supreme Industries, Inc., 252,620
Class A
47,000 TRC Cos., Inc. (b) 635,910
48,000 Tsakos Energy Navigation 1,880,640
Ltd.
30,000 U.S. Xpress Enterprises, 584,100
Inc., Class A (b)
28,000 USA Truck, Inc. (b) 689,360
34,000 Waste Industries USA, 736,780
Inc. ------------
35,931,592
------------
INFORMATION TECHNOLOGY - 7.87%
150,000 Advanced Digital 1,317,000
Information Corp. (b)
59,000 Anaren, Inc. (b) 1,148,730
65,000 Audiovox Corp., 776,100
Class A (b)
76,300 Bell Microproducts, 470,008
Inc. (b)
49,200 CalAmp Corp. (b) 577,608
19,000 Cobra Electronics 201,210
Corp. (b)
23,000 Communications 242,650
Systems, Inc.
27,000 ePlus, Inc. (b) 384,210
24,000 GTSI Corp. (b) 154,560
32,000 Inforte Corp. 140,160
35,000 Integral Systems, Inc. 944,650
21,000 Magal Security Systems 276,780
Ltd. (b)
102,700 McData Corp. (b) 474,474
65,000 MCSI, Inc. (b) 13
19,000 Mediware Information 190,000
Systems, Inc. (b)
41,000 Merge Technologies, 654,770
Inc. (b)
104,000 Methode Electronics, Inc. 1,132,560
70,000 MIVA, Inc. (b) 285,600
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
48,000 NU Horizons Electronics $ 408,480
Corp. (b)
40,000 OPNET Technologies, 428,800
Inc. (b)
76,000 Pegasystems, Inc. (b) 620,160
75,000 Pericom Semiconductor 739,500
Corp. (b)
62,000 PLATO Learning, Inc. (b) 588,380
37,000 Pomeroy IT Solutions, 309,320
Inc. (b)
28,000 Retalix Ltd. (b) 692,160
47,000 Richardson Electronics 441,800
Ltd.
40,000 Rofin-Sinar Technologies, 2,165,200
Inc. (b)
43,000 SBS Technologies, Inc. (b) 696,600
76,000 Semitool, Inc. (b) 864,120
13,800 SL Industries, Inc. (b) 227,700
49,000 Sypris Solutions, Inc. 462,070
14,000 TESSCO Technologies, 259,000
Inc. (b)
54,000 Tier Technologies, Inc., 434,700
Class B (b)
120,000 Ulticom, Inc. (b) 1,290,000
97,000 White Electronic Designs 568,420
Corp. (b) ------------
20,567,493
------------
MATERIALS - 10.53%
67,839 Aceto Corp. 499,973
85,000 AMCOL International 2,448,000
Corp.
7,300 American Biltrite, Inc. (b) 83,804
21,200 American Pacific 194,616
Corp. (b)
14,000 AZZ, Inc. (b) 344,400
107,000 Buckeye Technologies, 968,350
Inc. (b)
45,000 CIRCOR International, 1,314,000
Inc.
9,800 Eastern Co. (The) 205,310
11,315 Ecology and 117,223
Environment, Inc., Class
A
60,000 Encore Wire Corp. (b) 2,032,800
62,000 Ennis Business Forms, 1,209,000
Inc.
18,000 Friedman Industries, Inc. 167,400
80,000 Gibraltar Industries, Inc. 2,356,800
29,000 Hawkins, Inc. 408,030
21,300 Mestek, Inc. (b) 267,954
23,800 Michael Baker Corp. (b) 674,254
78,000 Mobile Mini, Inc. (b) 2,411,760
10,562 MOD-PAC Corp. (b) 122,519
44,000 NewMarket Corp. 2,093,960
72
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Microcap Value Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
140,400 North American $ 1,638,468
Palladium Ltd. (b)
18,800 Northwest Pipe Co. (b) 570,580
26,000 Novamerican Steel, 1,194,700
Inc. (b)
22,000 Penford Corp. 353,760
31,700 Roanoke Electric Steel 1,023,910
Corp.
55,500 RTI International Metals, 3,044,176
Inc. (b)
26,000 Stepan Co. 768,300
12,300 Summa Industries, Inc. 125,460
16,000 Universal Stainless & 411,200
Alloy Products, Inc. (b)
3,350 VSE Corp. 139,025
3,200 Vulcan International 173,600
Corp.
37,000 Wolverine Tube, Inc. (b) 148,740
------------
27,512,072
------------
TELECOMMUNICATION SERVICES - 0.26%
45,000 CT Communications, Inc. 611,550
10,562 OneSource Services, 74,990
Inc. (b) ------------
686,540
------------
UTILITIES - 8.02%
44,000 American States Water 1,643,840
Co.
47,054 California Water Service 2,119,783
Group
31,900 Cascade Natural Gas 628,430
Corp.
15,700 Chesapeake Utilities 490,468
Corp.
23,500 Connecticut Water 616,170
Service, Inc.
9,000 Delta Natural Gas Co., 239,310
Inc.
71,000 Empire District Electric 1,577,620
Co. (The)
24,000 EnergySouth, Inc. 763,440
18,000 Florida Public Utilities Co. 254,700
21,000 Giant Industries, Inc. (b) 1,460,340
14,500 Green Mountain Power 418,905
Corp.
98,000 Harvest Natural 952,560
Resources, Inc. (b)
35,000 Innospec, Inc. 897,050
4,900 Maine & Maritimes Corp. 75,264
30,400 Middlesex Water Co. 575,776
49,000 Resource America, Inc., 976,080
Class A
6,500 RGC Resources, Inc. 166,075
82,000 SEMCO Energy, Inc. (b) 454,280
52,800 SJW Corp. 1,417,680
SHARES OR
PRINCIPAL
AMOUNT VALUE
- -----------------------------------------------------------------------------
70,400 South Jersey Industries, $ 1,919,808
Inc.
45,644 Southwest Water Co. 727,565
41,000 SureWest 988,920
Communications
118,000 TransMontaigne, Inc. (b) 1,157,580
16,476 Unitil Corp. 430,188
------------
20,951,832
------------
TOTAL COMMON STOCKS 255,927,811
(Cost $165,648,396) ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 1.91%:
$5,000,000 Federal Home Loan 4,998,150
Bank, 4.44%, 4/3/06 (d) ------------
TOTAL U.S. GOVERNMENT AGENCY 4,998,150
OBLIGATIONS ------------
(Cost $4,998,767)
WARRANTS - 0.00%
HEALTHCARE - 0.00%
2,967 Del Global Technologies 7,121
Corp. (b) ------------
TOTAL WARRANTS 7,121
(Cost $0) ------------
TOTAL INVESTMENTS 260,933,082
(Cost $170,647,163) (a) - 99.86%
Other assets in excess of liabilities - 376,351
0.14% ------------
NET ASSETS - 100.00% $261,309,433
============
(a) See Note 7 for the tax cost of securities and the breakdown of unrealized
appreciation (depreciation).
(b) Non-income producing security.
(c) Security bankrupt/delisted.
(d) Rate represents the effective yield at purchase.
(e) Fair valued security.
SEE NOTES TO FINANCIAL STATEMENTS.
73
================================================================================
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
================================================================================
Collateral Information for Securities on Loan:
- --------------------------------------------------------------------------------
The cash collateral received for securities lending, as discussed in Note 2,
was pooled and invested into the following:
ENTERPRISE
LARGE CAP MID CAP ENTERPRISE SMALL CAP VALUE
GROWTH FUND GROWTH FUND FUND FUND FUND
----------- ----------- ---------- ---------- ----------
American General Finance,
4.78%, 4/13/2007 $ 523,904 $ 695,866 $2,137,894 $ 431,347 $ 812,419
Atlantic Asset SEC Corporation,
4.83%, 4/12/2006 627,680 833,704 2,561,370 516,789 973,343
Atlas Capital Funding
Corporation, 4.80%,
10/20/2006 628,427 834,697 2,564,421 517,405 974,503
Atomium Funding Corporation,
4.53%, 4/12/2006 503,190 668,353 2,053,365 414,293 780,297
Beta Finance Inc., 4.88%,
6/2/2006 628,509 834,806 2,564,755 517,472 974,630
Buckingham, LLC., COD, 4.83%,
4/25/2006 104,433 138,711 426,160 85,983 161,945
Buckingham, LLC., COD, 4.83%,
4/26/2006 313,258 416,080 1,278,313 257,916 485,770
Cedar Springs Capital Company,
LLC., 4.47%, 4/5/2006 785,330 1,043,100 3,204,693 646,588 1,217,812
Concord Minutemen Capital
Corporation, 4.72%,
4/12/2006 418,952 556,465 1,709,614 344,937 649,669
Concord Minutemen Capital
Corporation, 4.72%,
4/11/2006 219,950 292,144 897,547 181,092 341,076
Corporate Asset Sec., 4.75%,
4/18/2006 731,714 971,885 2,985,901 602,444 1,134,669
Dexia Credit Local De France
COD, 4.67%, 8/14/2006 156,543 207,925 638,804 128,887 242,751
Fairway Finance Corporation,
4.87%, 4/4/2006 670,235 890,228 2,735,027 551,827 1,039,335
Grampian Funding, LLC., 4.89%,
4/4/2006 628,346 834,589 2,564,088 517,338 974,376
Islands Bank, Inc., 4.84%,
3/22/2007 418,910 556,409 1,709,443 344,902 649,604
KLIO Funding Corporation,
4.83%, 4/25/2006 626,599 832,268 2,556,959 515,899 971,667
KLIO Funding Corporation,
4.82%, 4/26/2006 141,071 187,375 575,667 116,148 218,759
Legacy Capital, LLC., 4.58%,
4/6/2006 418,784 556,242 1,708,930 344,799 649,409
Lexington Parker Capital, 4.91%,
4/3/2006 104,738 139,116 427,404 86,234 162,417
Liberty Street Funding Corp.,
4.90%, 4/3/2006 628,427 834,697 2,564,421 517,405 974,503
MBIA Global Funding, LLC.,
4.78%, 2/20/2007 314,195 417,323 1,282,134 258,687 487,222
Met Life Global Funding, 4.67%,
3/12/2012 523,700 695,595 2,137,060 431,179 812,102
Morgan Stanley, CP, 4.94%,
10/10/2006 523,689 695,581 2,137,018 431,171 812,086
Morgan Stanley, CP, 4.94%,
10/30/2006 314,214 417,349 1,282,211 258,702 487,251
Perry Global Funding Limited,
4.51%, 4/10/2006 256,474 340,657 1,046,592 211,163 397,714
74
================================================================================
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
================================================================================
Collateral Information for Securities on Loan:
- --------------------------------------------------------------------------------
ENTERPRISE
LARGE CAP MID CAP ENTERPRISE SMALL CAP VALUE
GROWTH FUND GROWTH FUND FUND FUND FUND
----------- ----------- ----------- ----------- -----------
Whistlejacket Capital, 4.61%,
4/3/2006 $ 209,476 $ 278,232 $ 854,807 $ 172,468 $ 324,834
White Pine Finance, LLC.,
4.70%, 7/17/2006 523,689 695,581 2,137,018 431,171 812,086
GS Group Inc., 4.97%,
6/30/2006 418,952 556,465 1,709,614 344,937 649,669
Morgan Stanley Repurchase
Agreement, 4.92%, 4/3/2006 1,272,398 1,690,040 5,192,277 1,047,607 1,973,111
----------- ----------- ----------- ----------- -----------
Total Collateral Held $13,635,787 $18,111,483 $55,643,507 $11,226,790 $21,145,029
=========== =========== =========== =========== ===========
75
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
T. GERON BELL (64)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President of Twins Sports, Inc.
(parent company of the Minnesota Twins and Victory Sports) (2002-present);
prior thereto President of the Minnesota Twins Baseball Club Incorporated
(1987-present); Director, Great Hall Investment Funds, Inc. (1993-2004);
Trustee, J&B Funds (2003-2004); Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
LUCY HANCOCK BODE (54)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Healthcare consultant; Director,
RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
LESLIE H. GARNER JR. (55)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Cornell College;
Director, RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
RONALD JAMES (55)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive
Officer, Center for Ethical Business Cultures (2000-present); Director, Great
Hall Investment Funds, Inc. (1993-2004); Trustee, J&B Funds (2003-2004);
Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
JOHN A. MACDONALD (57)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Investment Officer, Hall
Family Foundation; Trustee, J&B Funds (2001-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
H. DAVID RYBOLT (63)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Consultant, HDR Associates
(management consulting); Director, Babson Funds (1992-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
JAMES R. SEWARD (53)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Private investor (2000-present);
Trustee, J&B Funds (2001-2004); Financial Consultant, Seward & Company, LLC
(1998-2000); CFA.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
76
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
WILLIAM B. TAYLOR (60)
POSITION HELD WITH FUND: Trustee; Since September, 2005
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Consultant (2003-present); Partner
(until 2003) Ernst & Young LLP.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
Interested Trustees(1)
- --------------------------------------------------------------------------------
ERIK R. PREUS (40)
POSITION HELD WITH FUND: Trustee; Since January 2006
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer, Voyageur
Asset Management (2005 to present); Director, Investment Consulting Services,
RBC Dain Rauscher (2004-2005); Director, Voyageur Advisory Services, Voyageur
Asset Management (2003-2004); Senior Vice President, Divisional Sales Manager,
PIMCO Allianz Investments and its predecessor firm, Nicholas Applegate
(2001-2003).
- --------------------------------------------------------------------------------
Executive Officers(1)
- --------------------------------------------------------------------------------
JENNIFER D. LAMMERS (45)
POSITION HELD WITH FUND: President and Chief Executive Officer; Since January,
2004 PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, Voyageur
Asset Management (2000-present); Mutual Fund Services Director, Voyageur Asset
Management (2003-present); Chief Financial Officer, Great Hall Investment Funds,
Inc. (2001-2003); Compliance Officer, Great Hall Investment Funds, Inc.
(2000-2001); Director of Finance, Voyageur Asset Management (2000-2003); Vice
President and Manager, Financial Reporting, RBC Dain Rauscher (1998-2000);
President and Chief Executive Officer (2003-2004)(2).
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson-Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
77
================================================================================
MANAGEMENT
================================================================================
Executive Officers(1)
- --------------------------------------------------------------------------------
DAVID P. LUX (51)
POSITION HELD WITH FUND: Chief Financial Officer; Since September, 2005
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Controller, Tamarack Funds,
November, 2004-September, 2005; Vice President and Mutual Funds Finance
Manager, Voyageur Asset Management (2004-present); Senior Financial Analyst,
Voyageur Asset Management (2003-2004); Senior Financial Analyst, RBC Dain
Rauscher Fixed Income Group (1995-2003).
- --------------------------------------------------------------------------------
MARTIN A. CRAMER (56)
POSITION HELD WITH FUND: Vice President, Assistant Secretary, Chief Compliance
Officer, and AML Compliance Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Mutual Fund
Administration Manager, Voyageur Asset Management (2003-present); Legal and
Regulatory Affairs Vice President, Compliance Officer and Secretary, J&B
(mutual fund management and distribution company) (1993-2003); Vice President,
Assistant Secretary, Compliance Officer and AML Compliance Officer
(2003-2004)(2), and formerly, Vice President, Compliance Officer and Secretary,
Buffalo Fund Complex (1994-2003) and Secretary, Gold Bank Funds(3) (2001-2003).
- --------------------------------------------------------------------------------
MONICA V. BALLARD (35)
POSITION HELD WITH FUND: Secretary and Chief Legal Officer since September,
2005
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Senior Associate General Counsel,
RBC Dain Rauscher (2004 to present); Counsel, Allianz Life (2002 to 2004);
Associate Counsel, American Express Financial Advisors (1996 to 2002).
- --------------------------------------------------------------------------------
GORDON TELFER (40)
POSITION HELD WITH FUND: Portfolio Strategist; Since March, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Portfolio
Manager, Voyageur Asset Management (2003-present); Senior Portfolio Manager,
Alliance Capital Management (2000-2003); Senior Vice President, Global
Strategist, Scudder Kemper Investments (1997-2000).
- --------------------------------------------------------------------------------
NANCY M. SCINTO (46)
POSITION HELD WITH FUND: Chief Investment Officer, Equity Products; Since
January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director and Director of
Research, Voyageur Asset Management.
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson-Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
(3) The Buffalo Fund Complex consists of Buffalo Balanced Fund, Inc., Buffalo
Large Cap Fund, Inc., Buffalo High Yield Fund, Inc., Buffalo Small Cap
Fund, Inc., Buffalo USA Global Fund, Inc., and the Buffalo Funds, which is
a series fund consisting of Buffalo Science & Technology Fund and Buffalo
Mid Cap Fund. Gold Bank Funds is a series fund consisting of Gold Bank
Equity and Gold Bank Money Market Fund.
78
================================================================================
SHARE CLASS INFORMATION
================================================================================
- --------------------------------------------------------------------------------
The Tamarack Equity Funds offer up to five share classes. These five share
classes are the A, C, R, I, and S classes.
- --------------------------------------------------------------------------------
A CLASS
A Class shares are available for purchase primarily through investment advisors,
broker- dealers, banks and other financial services intermediaries. A Class
shares of the Tamarack Equity Funds are currently subject to a maximum up-front
sales charge of 5.75% and a 1.00% contingent deferred sales charge ("CDSC") for
redemption within 12 months of a $1 million or greater purchase. A Class shares
currently include a 0.25% (25 bps) annual 12b-1 service and distribution fee.
(The 12b-1 Plan allows for 50 bps, but the Funds' distributor is currently
voluntarily waiving 25 bps. The Distributor currently has no plans to
discontinue this waiver.) A Class shares have a higher up-front sales charge
(load) than C Class shares, but a lower annual expense ratio.
- --------------------------------------------------------------------------------
C CLASS
C Class shares are also available for purchase primarily through investment
advisors, broker-dealers, banks and other financial services intermediaries. C
Class shares redeemed within 12 months of purchase are subject to a contingent
deferred sales charge (CDSC) of 1.00%. (No CDSC will be charged on shares
acquired through reinvestment of dividends or capital gains.) C Class shares
expenses include a 1.00% (100 bps) annual 12b-1 service and distribution fee. C
Class shares have a lower up-front sales charge (load) than A Class shares, but
due to the higher service and distribution fee, have higher annual expenses than
A Class shares.
- --------------------------------------------------------------------------------
R CLASS
R Class shares are available for purchase through employer-sponsored or 401(k)
retirement plans for which omnibus or program-level accounts are held on the
books of the Funds. R Class shares have no up-front sales charge (load), but are
subject to a 0.50% (50 bps) 12b-1 service and distribution fee. R Class shares
currently have annual expenses between A Class and C Class share expenses.
- --------------------------------------------------------------------------------
S CLASS
S Class shares are available through certain fee-based programs of
broker-dealers or registered investment advisors. This share class does not have
an up-front sales charge (load) or a 12b-1 service and distribution fee.
- --------------------------------------------------------------------------------
I CLASS
I Class shares are available in the Tamarack Enterprise, Large Cap Growth, Mid
Cap Growth and Small Cap Growth Funds. This share class is intended for
investors meeting certain minimum investment thresholds. This share class does
not have an up-front sales charge (load) or a 12b-1 service and distribution
fee.
- --------------------------------------------------------------------------------
For an investor purchasing Tamarack Funds shares through a financial services
intermediary, the question as to which share class, A or C, is the better choice
is dependent on many factors, including the amount to be invested and the length
of time an investor anticipates holding the shares. An investor should consult
with his or her financial advisor about his or her personal financial situation
to determine which share class is the best choice for his or her individual
situation.
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INFORMATION FOR TAMARACK FUNDS SHAREHOLDERS REGARDING THE RENEWAL OF INVESTMENT
ADVISORY AGREEMENT
The Tamarack Board of Trustees has renewed the Investment Advisory Agreement
with Voyageur Asset Management Inc. for each of the Funds. The Trustees also
renewed the Sub-Advisory Agreements between Voyageur and Babson Capital
Management LLC for the Enterprise and Enterprise Small Cap Funds. After
evaluating the services provided by the Advisor and Sub-Advisor and reviewing
the performance and relevant expenses of each Fund, the Trustees concluded that
it was in the best interests of the Funds and their shareholders to retain
Voyageur and Babson for an additional year.
As part of their review of the Agreements, the Trustees received and discussed
certain information, including information regarding the advisory services
performed, qualifications of staffing, and Fund performance and expenses. The
Trustees considered information provided in advance of their in-person meeting,
as well as supplemental information provided at the meeting. The Trustees met
with representatives from the Advisor's senior management team, as well as
senior investment professionals, to discuss this information and Voyageur's
intentions with regard to the ongoing management of the Funds. The Trustees
reviewed the quality of the services provided to the Funds by both Voyageur and
Babson, including information prepared by a third-party consultant as to each
Fund's performance relative to an appropriate benchmark as well as compared to
the Fund's appropriate peer group. The Trustees also reviewed the investment
management fees payable to Voyageur and by Voyageur to Babson. In this
connection, the Trustees reviewed comparative information prepared by a
third-party consultant on investment management fees paid and expenses incurred
by similarly situated funds. The Trustees also received reports from Voyageur
and Babson regarding other investment companies advised or subadvised by them,
including the advisory fees paid. The Trustees took into account profitability
data for Voyageur included in the 15C review materials. The Trustees received
information from Voyageur and Babson regarding other benefits derived from
their relationships with the funds. In connection with their deliberations, the
independent Trustees met separately with their independent legal counsel to
review the relevant material and consider their responsibilities under relevant
laws and regulations. In addition, the Trustees noted the expected composition
of each portfolio management team. Finally, the Trustees took into account
various advantages and benefits expected to be associated with the overall
consolidation of the Funds under the Tamarack Funds complex, including
operational, compliance and distribution services.
When evaluating investment performance of the Funds, the Trustees generally
emphasize three to five year returns, as opposed to shorter time periods.
Although there was some variability in three year performance, the Trustees
considered that the five year performance of all Funds was above the median for
their respective peer groups. While the Trustees acknowledged that relative
performance of the Funds has varied, particularly over the shorter time
periods, the Trustees determined that, based upon the information provided,
each of Voyageur and Babson was taking positive steps to seek to achieve strong
performance for each applicable Fund (i.e., each Fund to which it provides
advisory/sub-advisory services) relative to such Fund's respective benchmark.
In reviewing expenses, the Trustees noted that total expenses of each Fund were
at or below the median for its respective peer groups. The Trustees also
reviewed and approved Fund Management's proposal to continue for an additional
year all existing fee waivers in order to maintain total expenses at their
current levels. In considering the quality of the
80
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services performed for each Fund by Voyageur and Babson, the Trustees discussed
the strong research capabilities and fundamental analysis performed by each
firm and also considered the extensive portfolio management experience of both
Voyageur and Babson, the compliance structure and systems established by
Voyageur and Babson and the financial viability of Voyageur and Babson. The
Trustees also considered steps that already had been taken by Voyageur and
Babson to expand upon existing research capabilities and compliance processes
and steps that were expected to be taken to maintain and/or enhance such
capabilities and processes.
Based upon their review, the Trustees determined that the advisory fees
proposed to be payable to Voyageur and the sub-advisory fees proposed to be
payable to Babson were reasonable and fair, the nature and quality of services
provided were satisfactory, and concluded that it is in the interest of the
Funds and their shareholders for the Trustees to approve the Agreements for the
Funds. In arriving at their decision to approve the renewal of each of the
agreements, the Trustees did not assign relative weights to the factors
discussed above or deem any one or group of them to be controlling in and of
themselves.
Subsequent to these renewals, the Trustees approved an interim Advisory
Agreement for the Enterprise and Enterprise Small Cap Funds with OFI (see Note
10 to Financial Statements, Subsequent Event). In approving each interim
Advisory Agreement, the Trustees referred back to their prior deliberations
with regard to the annual renewals, as discussed above, and considered
additional information which they deemed appropriate.
81
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SHAREHOLDER EXPENSE EXAMPLES
As a shareholder of the Tamarack Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, reinvested
dividends, or other distributions; redemption fees; and exchange fees; (2)
ongoing costs, including management fees; 12b-1 distribution and service fees;
and other Fund expenses. This example is intended to help you understand your
ongoing costs (in dollars) of investing in the Tamarack Funds and to compare
these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire period from October 1, 2005 through March
31, 2006.
- --------------------------------------------------------------------------------
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information below, 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 table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you
paid on your account during this period.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
10/1/05 3/31/06 10/1/05 -- 3/31/06 10/1/05 -- 3/31/06
------------- ------------- ------------------ ------------------
Large Cap
Growth Fund Class A $ 1,000.00 $ 1,057.30 $ 6.41 1.25%
Class I 1,000.00 1,059.10 5.13 1.00%
Class C 1,000.00 1,054.10 10.24 2.00%
Class R 1,000.00 1,056.60 7.69 1.50%
Class S 1,000.00 1,059.10 5.13 1.00%
Mid Cap
Growth Fund Class A 1,000.00 1,181.70 7.34 1.35%
Class I 1,000.00 1,182.70 5.99 1.10%
Class C 1,000.00 1,176.60 11.40 2.10%
Class R 1,000.00 1,179.80 8.70 1.60%
Class S 1,000.00 1,183.50 5.99 1.10%
Small Cap
Growth Fund Class A 1,000.00 1,147.40 8.99 1.68%
Class I 1,000.00 1,148.70 7.66 1.43%
Class C 1,000.00 1,143.20 12.98 2.43%
Class R 1,000.00 1,146.60 10.33 1.93%
Class S 1,000.00 1,148.80 7.66 1.43%
Enterprise Fund Class A 1,000.00 1,121.30 7.03 1.33%
Class I 1,000.00 1,122.80 5.72 1.08%
Class C 1,000.00 1,117.50 10.98 2.08%
Class R 1,000.00 1,120.30 8.35 1.58%
Class S 1,000.00 1,123.30 5.72 1.08%
Enterprise Small
Cap Fund Class A 1,000.00 1,172.60 8.40 1.55%
Class C 1,000.00 1,168.00 12.43 2.30%
Class R 1,000.00 1,171.10 9.74 1.80%
Class S 1,000.00 1,174.30 7.05 1.30%
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BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
10/1/05 3/31/06 10/1/05 -- 3/31/06 10/1/05 -- 3/31/06
------------- ------------- ------------------ ------------------
Value Fund Class A $ 1,000.00 $ 1,043.90 $ 6.73 1.32%
Class C 1,000.00 1,039.90 10.53 2.07%
Class R 1,000.00 1,042.50 7.94 1.56%
Class S 1,000.00 1,045.30 5.41 1.06%
Microcap Value
Fund Class A 1,000.00 1,143.00 7.21 1.35%
Class C 1,000.00 1,139.10 11.20 2.10%
Class R 1,000.00 1,142.00 8.54 1.60%
Class S 1,000.00 1,144.40 5.88 1.10%
*Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
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HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Tamarack Funds' actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
10/1/05 3/31/06 10/1/05 -- 3/31/06 10/1/05 -- 3/31/06
------------- ------------- ------------------ ------------------
Large Cap
Growth Fund Class A $ 1,000.00 $ 1,018.70 $ 6.29 1.25%
Class I 1,000.00 1,019.95 5.04 1.00%
Class C 1,000.00 1,014.96 10.05 2.00%
Class R 1,000.00 1,017.45 7.54 1.50%
Class S 1,000.00 1,019.95 5.04 1.00%
Mid Cap
Growth Fund Class A 1,000.00 1,018.20 6.79 1.35%
Class I 1,000.00 1,019.45 5.54 1.10%
Class C 1,000.00 1,014.46 10.55 2.10%
Class R 1,000.00 1,016.95 8.05 1.60%
Class S 1,000.00 1,019.45 5.54 1.10%
Small Cap
Growth Fund Class A 1,000.00 1,016.55 8.45 1.68%
Class I 1,000.00 1,017.80 7.19 1.43%
Class C 1,000.00 1,012.81 12.19 2.43%
Class R 1,000.00 1,015.31 9.70 1.93%
Class S 1,000.00 1,017.80 7.19 1.43%
Enterprise Fund Class A 1,000.00 1,018.30 6.69 1.33%
Class I 1,000.00 1,019.55 5.44 1.08%
Class C 1,000.00 1,014.56 10.45 2.08%
Class R 1,000.00 1,017.05 7.95 1.58%
Class S 1,000.00 1,019.55 5.44 1.08%
Enterprise Small
Cap Fund Class A 1,000.00 1,017.20 7.80 1.55%
Class C 1,000.00 1,013.46 11.55 2.30%
Class R 1,000.00 1,015.96 9.05 1.80%
Class S 1,000.00 1,018.45 6.54 1.30%
Value Fund Class A 1,000.00 1,018.35 6.64 1.32%
Class C 1,000.00 1,014.61 10.40 2.07%
Class R 1,000.00 1,017.15 7.85 1.56%
Class S 1,000.00 1,019.65 5.34 1.06%
Microcap Value
Fund Class A 1,000.00 1,018.20 6.79 1.35%
Class C 1,000.00 1,014.46 10.55 2.10%
Class R 1,000.00 1,016.95 8.05 1.60%
Class S 1,000.00 1,019.45 5.54 1.10%
*Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
84
[PHOTO]
Tamarack Funds
P.O. Box 219757
Kansas City, MO 64121-9757
800-422-2766
www.TamarackFunds.com
TF SAR 3/06 TAMARACK DISTRIBUTORS, INC.
536524 (3/06)
TAMARACK FUNDS
Semi-Annual Report March 31, 2006
[PHOTO]
PRIME MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
TAX-FREE MONEY MARKET FUND
INSTITUTIONAL PRIME MONEY MARKET FUND
INSTITUTIONAL TAX-FREE MONEY MARKET FUND
[TAMARACK FUNDS LOGO]
================================================================================
================================================================================
TAMARACK FUNDS
- --------------------------------------------------------------------------------
ABOUT YOUR SEMI-ANNUAL REPORT
This semi-annual report includes detailed information regarding your Fund's
performance. This report is provided to help answer your questions as a
shareholder. Among these questions may be: What are the annual expenses of my
Fund? What are the significant accounting policies and procedures followed by
my Fund?
We hope the financial information presented will help you evaluate your
investment in the Tamarack Funds. We also encourage you to read your Fund's
prospectus for further detail as to your Fund's investment policies and risk
profile. Tamarack Funds prospectuses and additional performance information are
available on our website at www.tamarackfunds.com.
A description of the policies and procedures that your Fund uses to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 1-800-422-2766; (ii) on the Fund's website at
www.tamarackfunds.com; and (iii) on the Securities and Exchange Commission's
("Commission") website at http://www.sec.gov.
Information regarding how your Fund voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
(i) on the Fund's website at www.tamarackfunds.com; and (ii) on the
Commission's website at http://www.sec.gov.
A schedule of each Fund's portfolio holdings will be filed with the Commission
for the first and third quarters of each fiscal year on Form N-Q. This
information is available on the Commission's website at http://www.sec.gov and
may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference Room is
available by calling 1-800-SEC-0330.
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TABLE OF CONTENTS
Letter from the CIO of Fixed Income .................................... 1
Money Market Portfolio Managers ........................................ 3
Performance Summary .................................................... 4
Financial Statements
- - Statements of Assets and Liabilities ................................. 6
- - Statements of Operations ............................................. 7
- - Statements of Changes in Net Assets .................................. 8
Financial Highlights ................................................... 13
Notes to Financial Statements .......................................... 18
Schedules of Portfolio Investments ..................................... 23
Management ............................................................. 52
Supplemental Information ............................................... 55
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LETTER FROM THE CIO OF FIXED INCOME
================================================================================
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It has been nearly two years and fifteen successive 25bps rate increases since
the dovish Federal Reserve morphed into a hawk; and as the capital markets have
become keenly aware, this hawk has shown a determined willingness to continue
feasting on any inflation risks it discovers within its economic lens. Looking
back throughout history, the 1978 through 1979 time period was the last time the
market evidenced so many consistent rate changes taking place. However, the
Fed's current economic landscape is certainly different than the inflationary
hunting grounds of the late 1970's. Or is it? Let's review what has transpired
in the fixed income markets through the first half of the Fund family's fiscal
year.
The yield curve finally surrendered during the last days of 2005 and inversion
became a reality. An inversion of the curve occurs when short-term rates are
higher than long-term interest rates. Curve inversions are rare, having happened
only seven times since the 1960's -- most dramatically in the late 1970's. When
the yield curve does invert, it has proven to be a statistically accurate
predictor of negative economic growth four to six quarters after the inversion
occurs. In fact, negatively-sloped yield curves have predicted six recessions
since the 1960s with only one "false" signal.
So where are we headed? Voyageur remains firmly in the camp that volatility will
inevitability trend higher. The key to our volatility argument is the belief
that expectations related to the Fed are becoming more divergent with each
passing week. Some pundits speculate that the long term tightening cycle is near
and the Fed stops after one or two more rate increases. The thought is that the
economy begins to slow during the latter half of 2006 and early 2007 and
inflation will be successfully contained. While this expectation is more to the
fixed income market's, and my own, liking all of this handicapping and
speculation as to subsequent Fed action will likely reintroduce volatility to
the bond market.
Unfortunately, a new and perhaps more troubling scenario is also being discussed
in fixed income circles. This being that amid strong growth prospects globally,
inflation concerns domestically, escalating commodity costs, high resource
utilization and a low unemployment rate, the Fed could be forced to raise
interest rates significantly higher. While current economic data and inflation
numbers do not necessarily support this scenario it is a distinct possibility
that rates may move significantly higher than current expectations. I believe
this scenario would result in a very negative impact on the U.S. economy.
We at Voyageur are in the camp that believes the economy would be better off if
the Fed takes a pause at some point soon as opposed to pushing toward much
higher rates. It is important to note that we believe we are in the midst of a
cyclical bear market for fixed income -- not a long-term bear market as this
recently emerging skeptical outlook would indicate. We don't think we are headed
back to double digit long term interest rates similar to the late 1970's -- even
if crude oil rises to $80 a barrel and we are forced to pay over $3 for a gallon
of gasoline. The Federal Reserve's hawkish policies should prove successful in
combating core inflation, and the higher level of interest rates will begin to
curb consumption and economic growth in upcoming years. While earnings have
continued to show solid growth, we are beginning to see signs of a slowdown in
1
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LETTER FROM THE CIO OF FIXED INCOME
================================================================================
the real estate market as long term interest rates have trended higher. So
while we have confidence in the Fed's ability to fight inflation, the larger
risk is perhaps they continue to throw punches after the bell sounds.
In the end, it remains to be seen whether the Fed's job is nearly over or new
inflationary risks present themselves. Our hope is the U.S. economy will find a
comfort zone of controlled growth and contained inflation. With respect to our
current fixed income strategy, we remain relatively defensive versus our long
term asset targets. Our concerns center on a potentially slowing economy in
upcoming years, a leveraged U.S. consumer and a Fed that should be moving to a
more neutral monetary policy. Speculative investing, shareholder enhancement
activity and increased risk taking are all potential sources of additional
problems. That said, interest rates have moved higher and the U.S. economy and
its workforce have historically proved resilient and flexible. With yields on a
diversified fixed income portfolio hovering near 5.5% many investors will
continue to rightly include bonds as a core portion of their investment
portfolio.
We will remain steadfast in our investment philosophy and risk disciplines,
which include not making bets on the direction of interest rates. We sincerely
value and appreciate your continued support.
/s/ John Huber
John Huber
Chief Investment Officer, Fixed Income Funds
Tamarack Funds
[PHOTO]
JOHN HUBER
CHIEF INVESTMENT OFFICER
FIXED INCOME FUNDS
2
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MONEY MARKET PORTFOLIO MANAGERS
================================================================================
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Voyageur Asset Management ("Voyageur"), the investment advisor to the Tamarack
Funds, employs a team approach to the management of each of the money market
funds. Each Fund's management team has access to Voyageur's investment research
and other money management resources. The members of Voyageur's money market
funds team are:
- --------------------------------------------------------------------------------
JOHN M. HUBER, CFA
CHIEF INVESTMENT OFFICER -- FIXED INCOME
John Huber is Voyageur's Chief Investment Officer of Fixed Income. His
responsibilities include overseeing and directing Voyageur's fixed income
division. John joined Voyageur from Galliard Capital Management where he was a
Principal and Senior Portfolio Manager, responsible for the firm's total return
fixed income effort. Prior to working for Galliard, John was a Portfolio Manager
for Norwest Investment Management. John managed several Wells Fargo Funds
including the Wells Fargo Stable Income Fund, which he guided to over $1 billion
in assets and a four star rating from Morningstar during his tenure. John, a
15-year industry veteran, received his BA from the University of Iowa and his
MBA in Finance from the University of Minnesota, Carlson School of Management.
John is a CFA charterholder and a member of the Twin Cities Society of Security
Analysts.
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RAYE C. KANZENBACH, CFA
SENIOR MANAGING DIRECTOR, SENIOR PORTFOLIO MANAGER
Raye Kanzenbach is the Senior Portfolio Manager for portfolios which invest in
tax-exempt securities. Raye has been with Voyageur and its predecessor firm,
Insight Investment Management, since 1983. He has been in the investment
industry since 1973. Raye received his MBA from the University of Michigan, his
BA from Lawrence University and is a CFA charterholder.
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SCOTT CABALKA
VICE PRESIDENT, SENIOR PORTFOLIO MANAGER
Scott Cabalka is responsible for all trading in the taxable portfolios of the
Tamarack Money Market Funds. In addition, he oversees the approved issuer list
for the Tamarack Funds. Scott has been with Voyageur and its predecessor firm,
Insight Investment Management, since 1993. He has been in the investment
industry since 1980. Scott received his MBA and BS from the University of
Minnesota.
- --------------------------------------------------------------------------------
STEVEN P. ELDREDGE, CFA
MANAGING DIRECTOR, CLIENT PORTFOLIO MANAGER
Steven Eldredge utilizes his 25 plus years of experience in the fixed income
industry to help lead Voyageur's fixed income portfolio management effort. Steve
has an extensive background in both the taxable and tax-exempt markets providing
him with a unique set of experiences to draw upon. Prior to joining Voyageur in
1995, Steve was Chief Operating Officer for the ABT Mutual Fund family. Steve
began his career in the investment industry in 1978 as a portfolio manager for a
bank holding company in Florida. Steve received his BA in Finance from the
University of Central Florida. He is a CFA charterholder and member of the CFA
Society of Minnesota.
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3
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PERFORMANCE SUMMARY
================================================================================
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TAMARACK MONEY MARKET FUNDS
o The Tamarack Money Market Funds seek to achieve the highest level of
current income as is consistent with prudent investment management, the
preservation of capital, and maintenance of liquidity. The funds invest in
a variety of highly-rated money market instruments. In the Tax-Free Money
Market Funds, investments are made in highly-rated debt obligations that
pay interest exempt from federal income taxes and alternative minimum tax
(AMT).
o Although the Tamarack Money Market Funds are not benchmarked to industry
indices (such as the S&P 500(R)), we do evaluate performance against each
Fund's respective peer group as reported by Lipper.
- --------------------------------------------------------------------------------
TAXABLE MONEY FUNDS
o For the six-month period ended March 31, 2006, the Prime, Institutional
Prime, and U.S. Government Money Market Funds provided yields that were
slightly above the average reported yields of their respective Lipper peer
groups.
o Short-term market interest rates continued to rise, largely in response to
increases made by the Federal Reserve Board to their benchmark overnight
Federal Funds rate. In this rising yield environment for short-term
securities, the three taxable money market funds maintained a strategy
whereby
(1) a high percentage of assets were in securities that matured within 60
days,
(2) a modest percentage of assets were placed in securities with maturities
of longer than 180 days and less than 397 days, while
(3) the three Funds maintained slightly longer average portfolio maturities
than were reported by their respective peer groups.
o We believe that while further increases in short-term yields are
forthcoming, there is a somewhat limited upside as to how much higher yields
will go in the coming six months.
- --------------------------------------------------------------------------------
TAX-EXEMPT FUNDS
o The performance of the Tax-Free Money Market Fund was within the average of
its Lipper peer group, while the Institutional Tax-Free Money Market
Fund's performance was slightly better then the average performance of its
Lipper peer group.
o Both tax-free Funds hold a large percentage of assets that provide either
daily or weekly liquidity (in other words, securities with maturities of
seven days or less). However, the Funds also hold a portion of assets in
highly-rated notes with maturities of between 180 and 397 days. This has
resulted in the average maturities of both Funds being slightly longer
than their peer groups.
4
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PERFORMANCE SUMMARY
================================================================================
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Each of the Tamarack Money Market Funds seeks to preserve the value of an
investment in the Fund at $1.00 per share. While the goal is to maintain a $1.00
per share price, there is no guarantee that a Fund will meet this goal and it is
possible to lose money.
TOTAL RETURN
FOR THE SIX MONTHS ENDED SEC 7-DAY ANNUALIZED YIELD (1)
MARCH 31, 2006 3/31/2006 3/31/2005
-------------- --------- ---------
Tamarack Prime Money Market Fund 1.75% 4.04% 2.04%
Tamarack U.S. Government Money
Market Fund 1.70% 3.93% 1.90%
Tamarack Tax-Free Money Market Fund 1.12% 2.44% 1.45%
Tamarack Institutional Prime Money
Market Fund (2) 2.01% 4.53% 2.41%
Tamarack Institutional Tax-Free Money
Market Fund (2) 1.33% 2.88% 1.79%
(1) As money market returns respond rapidly to market changes, such as in the
Fed Funds rate, the 7-Day yield is a more accurate reflection of current
earnings than the total return for the year. Prior year 7-Day yield
information is provided for comparative purposes.
(2) The Tamarack Institutional Prime and Institutional Tax-Free Money Market
Funds are intended for shareholders investing $1 million or more.
5
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FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
TAMARACK
TAMARACK U.S. GOVERNMENT TAMARACK
PRIME MONEY MONEY TAX-FREE MONEY
MARKET FUND MARKET FUND MARKET FUND
-------------- ------------ ------------
ASSETS:
Investments, at market value (cost $8,269,044,800; $710,112,996;
$827,385,373; $936,246,783 and $424,192,667, respectively) $8,269,044,800 $710,112,996 $827,385,373
Investment of Cash Collateral for Securities on Loan, at market value (cost
$36,190,415; $--; $--; $-- and $--, respectively) 36,190,415 - -
Repurchase Agreements, at cost 20,000,000 100,000,000 -
-------------- ------------ ------------
Total Investments 8,325,235,215 810,112,996 827,385,373
Interest receivable 25,177,466 1,365,227 5,949,138
Cash 3,493 - -
Receivable for capital shares issued - - -
Prepaid expenses 286,765 53,463 55,224
-------------- ------------ ------------
Total Assets 8,350,702,939 811,531,686 833,389,735
-------------- ------------ ------------
LIABILITIES:
Payable to custodian - - 14,239
Distributions payable 27,608,247 2,606,800 1,726,601
Payable for capital shares redeemed 1,374,254 4,247,570 2,049,218
Payable for investments purchased 80,046,171 - -
Payable upon return for securities on loan 36,190,415 - -
Accrued expenses and other payables:
Investment advisory fees 2,201,582 261,570 251,270
Administrative services fees 1,762,725 171,669 182,163
Other 1,648,937 136,717 86,167
-------------- ------------ ------------
Total Liabilities 150,832,331 7,424,326 4,309,658
-------------- ------------ ------------
Net Assets $8,199,870,608 $804,107,360 $829,080,077
============== ============ ============
NET ASSETS CONSIST OF:
Capital $8,199,936,733 $804,111,077 $829,081,733
Undistributed net investment income (loss) -- 1 1
Accumulated net realized losses from investment transactions (66,125) (3,718) (1,657)
-------------- ------------ ------------
Net Assets $8,199,870,608 $804,107,360 $829,080,077
============== ============ ============
SHARES OUTSTANDING: 8,200,058,098 804,145,220 829,130,074
NET ASSET VALUES: $ 1.00 $ 1.00 $ 1.00
============== ============ ============
TAMARACK TAMARACK
INSTITUTIONAL INSTITUTIONAL
PRIME MONEY TAX-FREE MONEY
MARKET FUND MARKET FUND
------------ ------------
ASSETS:
Investments, at market value (cost $8,269,044,800; $710,112,996;
$827,385,373; $936,246,783 and $424,192,667, respectively) $936,246,783 $424,192,667
Investment of Cash Collateral for Securities on Loan, at market value (cost
$36,190,415; $--; $--; $-- and $--, respectively) - -
Repurchase Agreements, at cost 8,000,000 -
------------ ------------
Total Investments 944,246,783 424,192,667
Interest receivable 3,906,464 2,857,910
Cash - -
Receivable for capital shares issued 11,946,171 -
Prepaid expenses 30,403 38,492
------------ ------------
Total Assets 960,129,821 427,089,069
------------ ------------
LIABILITIES:
Payable to custodian - -
Distributions payable 3,438,537 1,020,539
Payable for capital shares redeemed - 2,987,951
Payable for investments purchased 25,984,785 -
Payable upon return for securities on loan - -
Accrued expenses and other payables:
Investment advisory fees 196,173 91,538
Administrative services fees - -
Other 12,611 12,311
------------ ------------
Total Liabilities 29,632,106 4,112,339
------------ ------------
Net Assets $930,497,715 $422,976,730
============ ============
NET ASSETS CONSIST OF:
Capital $930,555,801 $422,977,267
Undistributed net investment income (loss) (1) (1)
Accumulated net realized losses from investment transactions (58,085) (536)
------------ -------------
Net Assets $930,497,715 $422,976,730
============ =============
SHARES OUTSTANDING: 930,564,218 422,977,267
NET ASSET VALUES: $ 1.00 $ 1.00
============ =============
SEE NOTES TO FINANCIAL STATEMENTS.
6
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
TAMARACK TAMARACK TAMARACK
TAMARACK U.S. GOVERNMENT TAMARACK INSTITUTIONAL INSTITUTIONAL
PRIME MONEY MONEY TAX-FREE MONEY PRIME MONEY TAX-FREE MONEY
MARKET FUND MARKET FUND MARKET FUND MARKET FUND MARKET FUND
------------- ------------ ----------- ------------ -----------
INVESTMENT INCOME:
Interest income $ 172,736,907 $ 17,111,754 $12,658,709 $ 18,743,240 $ 6,111,921
Dividend income 98,181 65,009 12,603 59,087 15,045
Securities lending income (a) 8,770 - - 929 -
------------- ------------ ----------- ------------ -----------
Total Investment Income 172,843,858 17,176,763 12,671,312 18,803,256 6,126,966
------------- ------------ ----------- ------------ -----------
EXPENSES:
Investment advisory fees 17,113,200 1,564,597 2,153,688 1,094,506 519,691
Administrative services fees 10,088,023 1,028,529 1,076,844 - -
Custodian fees 39,446 5,842 5,748 5,035 2,826
Shareholder reports 1,928,069 114,042 68,605 7,014 2,612
Transfer agent fees 7,432,073 397,702 263,428 20,852 9,224
Trustees' fees 12,865 12,865 12,865 12,865 12,865
Other fees 627,435 98,865 100,403 87,575 62,594
------------- ------------ ----------- ------------ -----------
Total expenses before fee reductions 37,241,111 3,222,442 3,681,581 1,227,847 609,812
Expenses reduced by:
Investment advisor (4,962,241) - (666,442) - -
------------- ------------ ----------- ------------ -----------
Net Expenses 32,278,870 3,222,442 3,015,139 1,227,847 609,812
------------- ------------ ----------- ------------ -----------
NET INVESTMENT INCOME 140,564,988 13,954,321 9,656,173 17,575,409 5,517,154
------------- ------------ ----------- ------------ -----------
REALIZED/UNREALIZED LOSSES FROM INVESTMENTS:
Net realized losses from investment transactions (22,732) (437) - (10,294) -
------------- ------------ ----------- ------------ -----------
Change in net assets resulting from operations $ 140,542,256 $ 13,953,884 $ 9,656,173 $ 17,565,115 $ 5,517,154
============= ============ =========== ============ ===========
(a) For more information on Securities Lending please see Note 2 in the Notes
to Financial Statements.
SEE NOTES TO FINANCIAL STATEMENTS.
7
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK PRIME MONEY MARKET FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
--------------- ---------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 140,564,988 $ 160,619,206
Net realized losses from investment
transactions (22,732) (34,649)
--------------- ---------------
Change in net assets resulting from operations 140,542,256 160,584,557
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (140,564,988) (160,744,063)
--------------- ---------------
Change in net assets from shareholder
distributions (140,564,988) (160,744,063)
--------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 1,668,298,656 3,577,430,405
Dividends reinvested 131,557,401 148,199,403
Cost of shares redeemed (1,521,662,451) (3,688,373,953)
--------------- ---------------
Change in net assets from capital transactions 278,193,606 37,255,855
--------------- ---------------
Net increase in net assets 278,170,874 37,096,349
NET ASSETS:
Beginning of period 7,921,699,734 7,884,603,385
--------------- ---------------
End of period $ 8,199,870,608 $ 7,921,699,734
=============== ===============
SHARE TRANSACTIONS:
Issued 1,668,298,656 3,577,430,405
Reinvested 131,557,401 148,199,389
Redeemed (1,521,662,451) (3,688,373,953)
--------------- ---------------
Change in shares from capital transactions 278,193,606 37,255,841
=============== ===============
SEE NOTES TO FINANCIAL STATEMENTS.
8
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK U.S. GOVERNMENT MONEY MARKET FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
--------------- ---------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 13,954,321 $ 16,973,991
Net realized losses from investment
transactions (437) (3,184)
--------------- ---------------
Change in net assets resulting from operations 13,953,884 16,970,807
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (13,954,284) (17,007,778)
--------------- ---------------
Change in net assets from shareholder
distributions (13,954,284) (17,007,778)
--------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 283,033,292 1,038,080,425
Dividends reinvested 13,281,147 15,764,456
Cost of shares redeemed (305,350,275) (1,187,673,086)
--------------- ---------------
Change in net assets from capital transactions (9,035,836) (133,828,205)
--------------- ---------------
Net decrease in net assets (9,036,236) (133,865,176)
NET ASSETS:
Beginning of period 813,143,596 947,008,772
--------------- ---------------
End of period $ 804,107,360 $ 813,143,596
=============== ===============
Undistributed (distributions in excess of) net
investment income $ 1 $ (36)
=============== ===============
SHARE TRANSACTIONS:
Issued 283,033,292 1,038,080,425
Reinvested 13,281,147 15,764,456
Redeemed (305,350,275) (1,187,673,087)
--------------- ---------------
Change in shares from capital transactions (9,035,836) (133,828,206)
=============== ===============
SEE NOTES TO FINANCIAL STATEMENTS.
9
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK TAX-FREE MONEY MARKET FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
--------------- ---------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 9,656,173 $ 13,116,569
Net realized gains (losses) from investment
transactions -- --
--------------- ---------------
Change in net assets resulting from operations 9,656,173 13,116,569
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (9,656,173) (13,156,292)
--------------- ---------------
Change in net assets from shareholder
distributions (9,656,173) (13,156,292)
--------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 396,846,219 977,930,746
Dividends reinvested 9,291,768 12,402,614
Cost of shares redeemed (435,098,217) (1,097,008,583)
--------------- ---------------
Change in net assets from capital transactions (28,960,230) (106,675,223)
--------------- ---------------
Net decrease in net assets (28,960,230) (106,714,946)
NET ASSETS:
Beginning of period 858,040,307 964,755,253
--------------- ---------------
End of period $ 829,080,077 $ 858,040,307
=============== ===============
Undistributed net investment income $ 1 $ 1
=============== ===============
SHARE TRANSACTIONS:
Issued 396,846,219 977,930,747
Reinvested 9,291,768 12,402,614
Redeemed (435,098,217) (1,097,008,585)
--------------- ---------------
Change in shares from capital transactions (28,960,230) (106,675,224)
=============== ===============
SEE NOTES TO FINANCIAL STATEMENTS.
10
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK INSTITUTIONAL PRIME MONEY MARKET FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
--------------- ---------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 17,575,409 $ 17,761,975
Net realized losses from investment
transactions (10,294) (20,299)
--------------- ---------------
Change in net assets resulting from operations 17,565,115 17,741,676
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (17,575,379) (17,788,685)
--------------- ---------------
Change in net assets from shareholder
distributions (17,575,379) (17,788,685)
--------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 669,932,609 1,281,086,607
Dividends reinvested 16,283,088 16,376,260
Cost of shares redeemed (546,036,108) (1,150,158,554)
--------------- ---------------
Change in net assets from capital transactions 140,179,589 147,304,313
--------------- ---------------
Net increase in net assets 140,169,325 147,257,304
NET ASSETS:
Beginning of period 790,328,390 643,071,086
--------------- ---------------
End of period $ 930,497,715 $ 790,328,390
=============== ===============
Distributions in excess of net investment income $ (1) $ (31)
=============== ===============
SHARE TRANSACTIONS:
Issued 669,932,609 1,281,086,607
Reinvested 16,283,088 16,376,260
Redeemed (546,036,108) (1,150,158,555)
--------------- ---------------
Change in shares from capital transactions 140,179,589 147,304,312
=============== ===============
SEE NOTES TO FINANCIAL STATEMENTS.
11
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK INSTITUTIONAL TAX-FREE MONEY MARKET FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
--------------- ---------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 5,517,154 $ 6,518,324
Net realized gains (losses) from investment
transactions -- --
--------------- ---------------
Change in net assets resulting from operations 5,517,154 6,518,324
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (5,517,139) (6,434,646)
--------------- ---------------
Change in net assets from shareholder
distributions (5,517,139) (6,434,646)
--------------- ---------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 305,370,511 633,907,963
Dividends reinvested 5,186,027 6,101,700
Cost of shares redeemed (245,657,116) (668,769,224)
--------------- ---------------
Change in net assets from capital transactions 64,899,422 (28,759,561)
--------------- ---------------
Net increase (decrease) in net assets 64,899,437 (28,675,883)
NET ASSETS:
Beginning of period 358,077,293 386,753,176
--------------- ---------------
End of period $ 422,976,730 $ 358,077,293
=============== ===============
Distributions in excess of net investment income $ (1) $ (16)
=============== ===============
SHARE TRANSACTIONS:
Issued 305,370,511 633,907,963
Reinvested 5,186,027 6,101,700
Redeemed (245,657,116) (668,769,224)
--------------- ---------------
Change in shares from capital transactions 64,899,422 (28,759,561)
=============== ===============
SEE NOTES TO FINANCIAL STATEMENTS.
12
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Prime Money Market Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES DISTRIBUTIONS
----------------------- --------------------------
NET ASSET
VALUE, NET TOTAL FROM NET
BEGINNING INVESTMENT INVESTMENT INVESTMENT TOTAL
OF PERIOD INCOME ACTIVITIES INCOME DISTRIBUTIONS
--------- ---------- ---------- ---------- -------------
Six Months Ended March 31, 2006 (Unaudited) $1.00 0.02 0.02 (0.02) (0.02)
Year Ended September 30, 2005 1.00 0.02 0.02 (0.02) (0.02)
Period Ended September 30, 2004 (e) 1.00 (a) (a) (a) (a)
Year Ended July 31, 2004 1.00 (a) (a) (a) (a)
Year Ended July 31, 2003 1.00 0.01 0.01 (0.01) (0.01)
Year Ended July 31, 2002 1.00 0.02 0.02 (0.02) (0.02)
Year Ended July 31, 2001 1.00 0.05 0.05 (0.05) (0.05)
NET ASSET
VALUE,
END OF TOTAL
PERIOD RETURN
--------- --------
Six Months Ended March 31, 2006 (Unaudited) $1.00 1.75%(c)
Year Ended September 30, 2005 1.00 2.00%
Period Ended September 30, 2004 (e) 1.00 0.14%(c)
Year Ended July 31, 2004 1.00 0.42%
Year Ended July 31, 2003 1.00 0.80%
Year Ended July 31, 2002 1.00 1.70%
Year Ended July 31, 2001 1.00 5.10%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
NET ASSETS, EXPENSES TO INCOME EXPENSES TO INCOME
END OF PERIOD AVERAGE TO AVERAGE AVERAGE TO AVERAGE
(MILLIONS) NET ASSETS NET ASSETS NET ASSETS* NET ASSETS*
------------- ------------ ------------ ----------- ------------
Six Months Ended March 31, 2006 (Unaudited) $8,200 0.80%(d) 3.48%(d) 0.92%(d) 3.36%(d)
Year Ended September 30, 2005 7,922 0.76% 1.97% 0.92% 1.81%
Period Ended September 30, 2004 (e) 7,885 0.71%(d) 0.83%(d) 0.93%(d) 0.61%(d)
Year Ended July 31, 2004 7,860 0.71% 0.42% 0.90% 0.24%
Year Ended July 31, 2003 8,111 0.71% 0.80% 0.90% 0.61%
Year Ended July 31, 2002 8,524 0.69% 1.66% 0.73% 1.61%
Year Ended July 31, 2001 5,282 0.62% 5.11% (b) (b)
* During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio would
have been as indicated.
(a) Less than $0.01 per share.
(b) There were no waivers or reimbursements during the period.
(c) Not Annualized.
(d) Annualized.
(e) For the period from August 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
13
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack U.S. Government Money Market Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES DISTRIBUTIONS
----------------------- --------------------------
NET ASSET
VALUE, NET TOTAL FROM NET
BEGINNING INVESTMENT INVESTMENT INVESTMENT TOTAL
OF PERIOD INCOME ACTIVITIES INCOME DISTRIBUTIONS
--------- ---------- ---------- ---------- -------------
Six Months Ended March 31, 2006 (Unaudited) $1.00 0.02 0.02 (0.02) (0.02)
Year Ended September 30, 2005 1.00 0.02 0.02 (0.02) (0.02)
Period Ended September 30, 2004 (e) 1.00 (a) (a) (a) (a)
Year Ended July 31, 2004 1.00 (a) (a) (a) (a)
Year Ended July 31, 2003 1.00 0.01 0.01 (0.01) (0.01)
Year Ended July 31, 2002 1.00 0.02 0.02 (0.02) (0.02)
Year Ended July 31, 2001 1.00 0.05 0.05 (0.05) (0.05)
NET ASSET
VALUE,
END OF TOTAL
PERIOD RETURN
--------- --------
Six Months Ended March 31, 2006 (Unaudited) $1.00 1.70%(c)
Year Ended September 30, 2005 $1.00 1.96%
Period Ended September 30, 2004 (e) 1.00 0.14%(c)
Year Ended July 31, 2004 1.00 0.38%
Year Ended July 31, 2003 1.00 0.70%
Year Ended July 31, 2002 1.00 1.60%
Year Ended July 31, 2001 1.00 4.90%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
NET ASSETS, EXPENSES TO INCOME EXPENSES TO INCOME
END OF PERIOD AVERAGE TO AVERAGE AVERAGE TO AVERAGE
(MILLIONS) NET ASSETS NET ASSETS NET ASSETS* NET ASSETS*
------------- ------------ ------------ ----------- ------------
Six Months Ended March 31, 2006 (Unaudited) $804 0.78%(d) 3.39%(d) (b) (b)
Year Ended September 30, 2005 813 0.74% 1.92% 0.77% 1.89%
Period Ended September 30, 2004 (e) 947 0.71%(d) 0.81%(d) 0.79%(d) 0.73%(d)
Year Ended July 31, 2004 929 0.71% 0.38% 0.73% 0.36%
Year Ended July 31, 2003 1,060 0.71% 0.70% 0.75% 0.66%
Year Ended July 31, 2002 1,088 0.57% 1.60% 0.59% 1.58%
Year Ended July 31, 2001 462 0.54% 4.88% (b) (b)
* During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio would
have been as indicated.
(a) Less than $0.01 per share.
(b) There were no waivers or reimbursements during the period.
(c) Not Annualized.
(d) Annualized.
(e) For the period from August 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
14
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Tax-Free Money Market Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES DISTRIBUTIONS
----------------------- --------------------------
NET ASSET
VALUE, NET TOTAL FROM NET
BEGINNING INVESTMENT INVESTMENT INVESTMENT TOTAL
OF PERIOD INCOME ACTIVITIES INCOME DISTRIBUTIONS
--------- ---------- ---------- ---------- -------------
Six Months Ended March 31, 2006 (Unaudited) $1.00 0.01 0.01 (0.01) (0.01)
Year Ended September 30, 2005 1.00 0.01 0.01 (0.01) (0.01)
Period Ended September 30, 2004 (e) 1.00 (a) (a) (a) (a)
Year Ended July 31, 2004 1.00 (a) (a) (a) (a)
Year Ended July 31, 2003 1.00 0.01 0.01 (0.01) (0.01)
Year Ended July 31, 2002 1.00 0.01 0.01 (0.01) (0.01)
Year Ended July 31, 2001 1.00 0.03 0.03 (0.03) (0.03)
NET ASSET
VALUE,
END OF TOTAL
PERIOD RETURN
--------- --------
Six Months Ended March 31, 2006 (Unaudited) $1.00 1.12%(c)
Year Ended September 30, 2005 1.00 1.44%
Period Ended September 30, 2004 (e) 1.00 0.11%(c)
Year Ended July 31, 2004 1.00 0.38%
Year Ended July 31, 2003 1.00 0.60%
Year Ended July 31, 2002 1.00 1.10%
Year Ended July 31, 2001 1.00 3.10%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------------------------------
RATIO OF NET RATIO OF NET
RATIO OF INVESTMENT RATIO OF INVESTMENT
NET ASSETS, EXPENSES TO INCOME EXPENSES TO INCOME
END OF PERIOD AVERAGE TO AVERAGE AVERAGE TO AVERAGE
(MILLIONS) NET ASSETS NET ASSETS NET ASSETS* NET ASSETS*
------------- ------------ ------------ ----------- ------------
Six Months Ended March 31, 2006 (Unaudited) $829 0.70%(d) 2.24%(d) 0.85%(d) 2.09%(d)
Year Ended September 30, 2005 858 0.66% 1.41% 0.83% 1.24%
Period Ended September 30, 2004 (e) 965 0.62%(d) 0.64%(d) 0.83%(d) 0.43%(d)
Year Ended July 31, 2004 1,003 0.62% 0.38% 0.86% 0.14%
Year Ended July 31, 2003 946 0.62% 0.62% 0.85% 0.39%
Year Ended July 31, 2002 909 0.59% 1.08% 0.65% 1.03%
Year Ended July 31, 2001 490 0.59% 3.07% (b) (b)
* During the period, certain fees were contractually reduced. If such
contractual fee reductions had not occurred, the ratio would have been as
indicated.
(a) Less than $0.01 per share.
(b) There were no waivers or reimbursements during the period.
(c) Not Annualized.
(d) Annualized.
(e) For the period from August 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
15
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Institutional Prime Money Market Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------- ----------------------------
NET ASSET
VALUE, NET TOTAL FROM NET
BEGINNING INVESTMENT INVESTMENT INVESTMENT TOTAL
OF PERIOD INCOME ACTIVITIES INCOME DISTRIBUTIONS
--------- ---------- ---------- ---------- -------------
Six Months Ended March 31, 2006 (Unaudited) $1.00 0.02 0.02 (0.02) (0.02)
Year Ended September 30, 2005 1.00 0.02 0.02 (0.02) (0.02)
Period Ended September 30, 2004 (d) 1.00 (a) (a) (a) (a)
Year Ended July 31, 2004 1.00 0.01 0.01 (0.01) (0.01)
Year Ended July 31, 2003 1.00 0.01 0.01 (0.01) (0.01)
Year Ended July 31, 2002 1.00 0.02 0.02 (0.02) (0.02)
Year Ended July 31, 2001 1.00 0.06 0.06 (0.06) (0.06)
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------
RATIO OF NET
NET ASSET RATIO OF INVESTMENT
VALUE, NET ASSETS, EXPENSES TO INCOME
END OF TOTAL END OF PERIOD AVERAGE TO AVERAGE
PERIOD RETURN (MILLIONS) NET ASSETS NET ASSETS
--------- ---------- ------------- ----------- ------------
Six Months Ended March 31, 2006 (Unaudited) $1.00 2.01%(b) $930 0.28%(c) 4.01%(c)
Year Ended September 30, 2005 1.00 2.48% 790 0.28% 2.47%
Period Ended September 30, 2004 (d) 1.00 0.21%(b) 643 0.29%(c) 1.26%(c)
Year Ended July 31, 2004 1.00 0.85% 656 0.29% 0.85%
Year Ended July 31, 2003 1.00 1.20% 503 0.30% 1.20%
Year Ended July 31, 2002 1.00 2.20% 449 0.30% 2.17%
Year Ended July 31, 2001 1.00 5.50% 366 0.31% 5.52%
(a) Less than $0.01 per share.
(b) Not Annualized.
(c) Annualized.
(d) For the period from August 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
16
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund
(SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD INDICATED)
INVESTMENT ACTIVITIES DISTRIBUTIONS
------------------------- ----------------------------
NET ASSET
VALUE, NET TOTAL FROM NET
BEGINNING INVESTMENT INVESTMENT INVESTMENT TOTAL
OF PERIOD INCOME ACTIVITIES INCOME DISTRIBUTIONS
--------- ---------- ---------- ---------- -------------
Six Months Ended March 31, 2006 (Unaudited) $1.00 0.01 0.01 (0.01) (0.01)
Year Ended September 30, 2005 1.00 0.02 0.02 (0.02) (0.02)
Period Ended September 30, 2004 (d) 1.00 (a) (a) (a) (a)
Year Ended July 31, 2004 1.00 0.01 0.01 (0.01) (0.01)
Year Ended July 31, 2003 1.00 0.01 0.01 (0.01) (0.01)
Year Ended July 31, 2002 1.00 0.01 0.01 (0.01) (0.01)
Year Ended July 31, 2001 1.00 0.03 0.03 (0.03) (0.03)
RATIOS/SUPPLEMENTAL DATA
-------------------------------------------
RATIO OF NET
NET ASSET RATIO OF INVESTMENT
VALUE, NET ASSETS, EXPENSES TO INCOME
END OF TOTAL END OF PERIOD AVERAGE TO AVERAGE
PERIOD RETURN (MILLIONS) NET ASSETS NET ASSETS
--------- ---------- ------------- ----------- ------------
Six Months Ended March 31, 2006 (Unaudited) $1.00 1.33%(b) $423 0.29%(c) 2.65%(c)
Year Ended September 30, 2005 1.00 1.78% 358 0.28% 1.79%
Period Ended September 30, 2004 (d) 1.00 0.16%(b) 387 0.30%(c) 0.98%(c)
Year Ended July 31, 2004 1.00 0.72% 355 0.32% 0.72%
Year Ended July 31, 2003 1.00 0.90% 244 0.33% 0.90%
Year Ended July 31, 2002 1.00 1.40% 193 0.36% 1.42%
Year Ended July 31, 2001 1.00 3.30% 172 0.39% 3.32%
(a) Less than $0.01 per share.
(b) Not Annualized.
(c) Annualized.
(d) For the period from August 1, 2004 to September 30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
17
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
March 31, 2006 (Unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION
Tamarack Funds Trust ("Tamarack") is registered under the Investment Company
Act of 1940 (as amended) as an open-end management investment company. Tamarack
was organized as a Delaware statutory trust on December 16, 2003. Predecessor
funds to Tamarack were reorganized as portfolios of Tamarack effective April
16, 2004. This semi- annual report includes the following five investment
portfolios ("Funds"):
- - Tamarack Prime Money Market Fund ("Prime Money Market Fund")
- - Tamarack U.S. Government Money Market Fund ("U.S. Government Money Market
Fund")
- - Tamarack Tax-Free Money Market Fund ("Tax-Free Money Market Fund")
- - Tamarack Institutional Prime Money Market Fund ("Institutional Prime Money
Market Fund")
- - Tamarack Institutional Tax-Free Money Market Fund ("Institutional Tax-Free
Money Market Fund")
Voyageur Asset Management Inc. ("Voyageur") acts as the investment advisor for
Tamarack. The officers of Tamarack ("Fund Management") are also employees of
Voyageur or its affiliates.
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
Summarized below are the significant accounting policies of the Funds. These
policies conform to accounting principles generally accepted in the United
States of America ("GAAP"). Fund management follows these policies when
preparing financial statements. Management may also be required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
income and expenses for the period. Actual results could differ from those
estimates.
SECURITY VALUATION:
Pursuant to Rule 2a-7 of the Investment Company Act of 1940 (as amended),
securities in money market funds are valued at amortized cost, which
approximates market value, in order to maintain a constant net asset value of
$1.00 per share. If amortized cost no longer approximates market value due to
credit or other impairments of the issuer, the Fund will use pricing and
valuation procedures approved by Tamarack's Board of Trustees (the "Board") to
determine a security's fair value.
Money market funds must invest exclusively in high quality securities. To be
considered high quality, a security generally must be rated in one of the two
highest short-term credit quality categories by a nationally recognized rating
organization such as Standard & Poors Corporation or Moody's Investors Service,
Inc. The Funds do not invest in any unrated securities.
INVESTMENT TRANSACTIONS AND INCOME:
Investment transactions are accounted for on the date the security is bought or
sold ("trade date"). Dividend income is recorded on the ex-dividend date.
Securities gains and losses are calculated based on the costs of the specific
security (also known as identified cost basis). Interest income is recognized
on the accrual basis and includes, where applicable, the amortization or
accretion of premium or discount.
18
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
FINANCIAL INSTRUMENTS:
The Funds may engage in when-issued transactions. The Funds record when-issued
securities on the actual trade date and maintain sufficient liquidity so that
cash will be available to make payment for the securities purchased. Securities
purchased on a when-issued basis are valued daily beginning on trade date.
Securities purchased on a when-issued basis begin earning interest on the
settlement date. As of March 31, 2006, the Funds held no when-issued
securities.
REPURCHASE AGREEMENTS:
The Funds may enter into repurchase agreements with primary dealers that report
to the Federal Reserve Bank of New York or the 100 largest U.S. commercial
banks (as measured by domestic deposits) who are deemed creditworthy under
guidelines approved by the Board. These repurchase agreements are subject to
the seller's agreement to repurchase such securities at a mutually agreed upon
date and price. The repurchase price generally equals the price paid by the
Funds plus interest negotiated on the basis of current short-term rates.
Securities pledged as collateral for repurchase agreements are held by the
Funds' custodian bank until maturity of the repurchase agreement. The Funds
have procedures to secure additional collateral, if needed, to ensure that the
daily market value of the collateral remains in excess of the repurchase
agreement in the event of a default.
EXPENSE, INVESTMENT INCOME AND GAIN/LOSS ALLOCATION:
Each Fund pays the expenses that are directly related to its operations, such
as trading costs or portfolio management fees. Expenses incurred by Tamarack on
behalf of multiple funds, such as trustee or legal fees, are allocated among
each of the Funds either proportionately based upon each Fund's relative net
assets or using another reasonable basis such as equally across all Funds,
depending on the nature of the expense.
DISTRIBUTIONS TO SHAREHOLDERS:
Each Fund pays out any income that it receives, less expenses, in the form of
dividends to its shareholders. Income dividends are declared daily and paid
monthly. Dividends will also be paid at any time during the month upon total
redemption of shares in an account. Capital gains are declared and paid at
least annually. Distributions to shareholders are recorded on the ex-dividend
date. The amount of dividends and distributions are calculated based on federal
income tax regulations, which may differ from GAAP. These "book/tax"
differences may be either temporary or permanent in nature. To the extent these
differences are permanent (e.g. expiring capital loss carryforward and foreign
currency transactions), they are reclassified within the Funds' capital
accounts based on their federal tax basis treatment. Such differences are not
reflected in the calculation of the financial highlights.
SECURITIES LENDING:
The Funds may lend their portfolio securities to brokers, dealers and financial
institutions, provided: (1) the loan is secured continuously by collateral
consisting of U.S. Government securities, cash or letters of credit maintained
on a daily mark-to-market basis in an amount at least equal to 100% of the
current market value of the securities loaned;
19
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
(2) the Funds may at any time call the loan and obtain the return of the
securities loaned within five business days; (3) the Funds will receive any
interest or dividends paid on the loaned securities; and (4) the aggregate
market value of securities loaned will not at any time exceed 331/3% of the
total assets of a particular Fund.
The Funds will earn income for lending their securities from fees paid by
borrowers and from the investment of cash collateral. The Funds will then pay
the lending agent ("Wells Fargo Bank") a percentage of the lending income.
Securities lending income is presented net of such payments to the lending
agent in the financial statements. Loans of securities involve a risk that the
borrower may fail to return the securities or may fail to provide additional
collateral. In the event that a borrower fails to return the lent security, the
lending agent will indemnify the Funds based on the difference in value between
the closing market value of the security on the date it should have been
returned and the value of the cash collateral. The Funds assume all risk of
loss from a decline in the market value of the collateral investment and any
resulting collateral deficiencies. In an effort to reduce these risks, Voyageur
and Wells Fargo Bank will monitor the creditworthiness of the firms to which
the Funds lend securities.
The following summarizes the market value of securities that were on loan to
brokers and the value of securities and cash held as collateral for these loans
as of March 31, 2006. The collateral received was invested into repurchase
agreements which are included in the Fund's Schedule of Portfolio Investments.
Value of Securities
Loaned Value of Collateral
-------------------- --------------------
Prime Money Market Fund $35,464,288 $36,190,415
- --------------------------------------------------------------------------------
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Tamarack, on behalf of the Funds, has entered into investment advisory
agreements with Voyageur, under which Voyageur manages the Funds' assets and
furnishes related office facilities, equipment, research and personnel. The
agreements require the Funds to pay Voyageur a monthly fee based upon average
daily net assets. Under the terms of the advisory contract Voyageur is entitled
to receive fees based on a percentage of the average daily net assets as
follows:
Average Daily Net
Assets of Fund Annual Rate
-------------------- ------------
Prime Money Market Fund Up to $700 million 0.55%
Next $500 million 0.50%
Next $800 million 0.45%
Over $2 billion 0.40%
U.S. Government Money Market Fund Up to $100 million 0.50%
Next $200 million 0.40%
Over $300 million 0.35%
Tax-Free Money Market Fund All Net Assets 0.50%
Institutional Prime Money Market Fund All Net Assets 0.25%
Institutional Tax-Free Money Market Fund All Net Assets 0.25%
Effective January 28, 2006, Voyageur contractually agreed to waive fees and/or
to make payments in order to keep total operating expenses of Prime Money
Market, U.S. Government Money Market and Tax-Free Money Market Funds to 0.80%,
0.78% and 0.70%, respectively. This expense limitation agreement is in place
until January 31, 2007. Voyageur may also voluntarily waive and/or reimburse
operating expenses of the Funds
20
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
from time to time. Any such voluntary program may be changed or eliminated at
any time without notice.
Voyageur serves as administrator to the Funds and BISYS Fund Services Ohio,
Inc. ("BISYS") serves as sub-administrator. Services provided under the
administrative services contract include providing day-to-day administration of
matters related to the corporate existence of the Funds, maintenance of their
records and the preparation of reports. Under the terms of the administrative
services contract, Voyageur receives from the Prime Money Market Fund, U.S.
Government Money Market Fund and Tax-Free Money Market Fund a fee, payable
monthly, at the annual rate of 0.25% of the Funds' average daily net assets.
For its services as sub-administrator, BISYS receives a fee payable by Voyageur
out of Voyageur's own resources.
- --------------------------------------------------------------------------------
4. FEDERAL INCOME TAXES
It is the policy of each Fund to qualify as a regulated investment company by
complying with the provisions applicable to certain investment companies, as
defined under Subchapter M of the Internal Revenue Code, and to distribute
substantially all of its net investment income and net realized capital gains.
Therefore, no federal tax liability is recorded in the financial statements of
each Fund. Effective as of the taxable year ended September 30, 2004, each of
the Funds changed its annual tax period to September 30th.
The tax character of distributions during the fiscal year ended September 30,
2005 was as follows:
Distributions Paid From
-----------------------------
Net Net Total
Investment Long Term Total Taxable Tax Exempt Distributions
Income Capital Gains Distributions Distributions Paid
------------ ------------- ------------- ------------- -------------
Prime Money Market Fund $148,197,743 $- $ 148,197,743 $- $ 148,197,743
U.S. Government Money
Market Fund 15,764,646 - 15,764,646 - 15,764,646
Tax-Free Money Market
Fund - - - 12,402,618 12,402,618
Institutional Prime Money
Market Fund 16,376,259 - 16,376,259 - 16,376,259
Institutional Tax-Free
Money Market Fund - - - 6,101,728 6,101,728
21
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
As of September 30, 2005 the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Undist. Accum.
Undist. Long- Capital Total
Tax Taxable Term and Unrealized Accum.
Exempt Ordinary Capital Accum. Distribution Other Appreciation/ Earnings/
Income Income Gains Earnings Payable Losses Depreciation (Deficit)
--------- ----------- -------- ------------ --------------- ----------- ------------- ----------
Prime Money
Market Fund $ - $18,600,575 $- $18,600,575 $(18,600,575) $(43,393) $- $(43,393)
U.S. Government
Money Market
Fund - 1,933,631 - 1,933,631 (1,933,667) (3,281) - (3,317)
Tax-Free Money
Market Fund 1,362,196 - - 1,362,196 (1,362,195) (1,657) - (1,656)
Institutional
Prime Money
Market Fund - 2,146,219 - 2,146,219 (2,146,250) (47,791) - (47,822)
Institutional
Tax-Free Money
Market Fund 689,411 - - 689,411 (689,427) (536) - (552)
As of September 30, 2005, the following Funds had net capital loss
carryforwards to offset future net capital gains or net investment income, if
any:
Capital Loss
Carryforward Expires
-------------- --------
Prime Money Market Fund $3,069 2012
U.S. Government Money Market Fund 97 2012
1,086 2013
Tax-Free Money Market Fund 1,657 2010
Institutional Prime Money Market Fund 21,544 2009
279 2011
5,669 2012
1,579 2013
Institutional Tax-Free Money Market Fund 536 2009
As of September 30, 2005, the following Funds had deferred post-October losses
to offset future net capital gains or net investment income, if any:
Deferred
Post-October
Losses
-------------
Prime Money Market Fund $40,324
U.S. Government Money Market Fund 2,098
Institutional Prime Money Market Fund 18,720
22
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
ASSET BACKED SECURITIES - 1.82%
ASSET BACKED AUTO RECEIVABLES - 1.82%
$25,500,000 Capital One Prime $ 25,500,000
Auto Receivables Trust,
Series 2006-1, Class
A1, 4.87%, 3/15/07
31,000,000 Daimler Chrysler Auto 31,000,000
Trust, Series 2006-A,
Class A1, 4.79%,
3/8/07
32,500,000 Honda Auto 32,500,000
Receivables Owner
Trust, Series 2006-1,
Class A1, 4.93%,
4/18/07
34,009,038 USAA Auto Owner 34,009,038
Trust, Series 2006-1,
Class A1, 4.76%,
3/15/07
26,500,000 World Omni Auto 26,500,000
Receivables Trust, --------------
Series 2006-A, Class
A1, 4.84%, 3/15/07
TOTAL ASSET BACKED SECURITIES 149,509,038
(Cost $149,509,038) --------------
COMMERCIAL PAPER - 44.49%
ASSET BACKED - 16.14%
33,040,000 Amsterdam Funding 32,940,472
Corp., 4.72%,
4/24/06, (LOC
ABN-AMRO
Bank) (c) (d)
55,000,000 Amsterdam Funding 54,808,600
Corp., 4.64%,
4/28/06, (LOC
ABN-AMRO
Bank) (c) (d)
30,000,000 Barton Capital LLC, 29,955,300
4.47%, 4/13/06, (LOC
Societe General) (c) (d)
55,000,000 Barton Capital LLC, 54,862,989
4.72%, 4/20/06, (LOC
Societe General) (c) (d)
77,000,000 Edison Asset 76,940,838
Securitization LLC,
4.61%, 4/7/06 (c) (d)
13,000,000 Edison Asset 12,921,079
Securitization LLC,
4.65%, 5/18/06 (c) (d)
30,000,000 Fairway Finance Corp., 29,966,625
4.45%, 4/10/06 (c) (d)
24,000,000 Fairway Finance Corp., 23,966,413
4.58%, 4/12/06 (c) (d)
40,000,000 Fairway Finance Corp., 39,940,400
4.47%, 4/13/06 (c) (d)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$64,000,000 Fairway Finance Corp., $ 63,368,533
4.80%, 6/14/06 (c) (d)
29,593,000 Falcon Asset 29,530,115
Securitization Corp.,
4.50%, 4/18/06 (c) (d)
75,000,000 Falcon Asset 74,772,875
Securitization Corp.,
4.74%, 4/24/06 (c) (d)
80,000,000 Kitty Hawk Funding 79,832,889
Corp., 4.70%,
4/17/06 (c) (d)
30,000,000 Liberty Street Funding 29,920,667
Corp., 4.76%,
4/21/06 (c) (d)
60,000,000 Liberty Street Funding 59,793,733
Corp., 4.76%,
4/27/06 (c) (d)
50,000,000 Liberty Street Funding 49,500,000
Corp., 4.80%,
6/15/06 (c) (d)
23,796,000 Nieuw Amsterdam 23,790,130
Funding, 4.44%,
4/3/06 (c) (d)
29,427,000 Nieuw Amsterdam 29,365,399
Funding, 4.71%,
4/17/06 (c) (d)
30,349,000 Nieuw Amsterdam 30,134,584
Funding, 4.71%,
5/25/06 (c) (d)
50,000,000 Ranger Funding Co. 49,931,250
LLC, 4.50%,
4/12/06 (c) (d)
123,839,000 Ranger Funding Co. 123,576,097
LLC, 4.49%,
4/18/06 (c) (d)
80,000,000 Sheffield Funding, 79,662,667
4.60%, 5/4/06, (LOC
Barclays Bank PLC, NY
Branch) (c) (d)
22,602,000 Three Pillars Funding, 22,542,607
4.73%, 4/21/06, (LOC
Suntrust Bank) (c) (d)
29,045,000 Triple A One Funding 28,769,653
Corp., 4.74%,
6/12/06 (c) (d)
70,000,000 Variable Funding 70,000,000
Corp., 4.61%,
6/5/06 (b) (c)
40,000,000 Windmill Funding 39,969,600
Corp., 4.56%,
4/7/06 (c) (d)
23,000,000 Windmill Funding 22,909,533
Corp., 4.72%,
5/1/06 (c) (d)
23
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$60,000,000 Windmill Funding $ 59,591,800
Corp., 4.71%, --------------
5/23/06, (LOC
ABN-AMRO
Bank NV) (c) (d)
1,323,264,848
--------------
BANKS - AUSTRALIA/NEW ZEALAND - 4.90%
124,500,000 ANZ Delaware, Inc., 124,314,288
4.48%, 4/13/06 (d)
70,000,000 ANZ Delaware, Inc., 69,669,056
4.60%, 5/8/06 (d)
40,000,000 ANZ Delaware, Inc., 39,768,000
4.64%, 5/16/06 (d)
70,000,000 ANZ Delaware, Inc., 69,538,875
4.65%, 5/22/06 (d)
50,000,000 Westpac Trust 49,557,986
Australia, 4.75%,
6/7/06 (c) (d)
50,000,000 Westpac Trust 49,232,083
Securities NZ Ltd., --------------
4.85%, 7/24/06 (c) (d)
402,080,288
--------------
BANKS - CANADA - 0.61%
50,000,000 Toronto Dominion 49,887,750
Bank, 4.49%, --------------
4/19/06 (c) (d)
BANKS - DOMESTIC - 0.85%
70,000,000 Amsouth Bank NA, 70,000,000
4.64%, 5/8/06 --------------
BANKS - FOREIGN - 4.38%
100,000,000 ABN-AMRO Bank, 100,000,701
4.70%, 5/22/06, (LOC
ABN-AMRO Bank)
70,000,000 ABN-AMRO Bank, 70,003,207
5.13%, 3/14/07
65,000,000 Calyon Bank, 4.63%, 64,632,569
5/15/06 (d)
25,000,000 Nationwide Building 24,721,028
Society, 4.84%,
6/23/06 (c) (d)
100,000,000 UBS Finance Delaware 99,435,333
LLC, 4.62%, --------------
5/15/06 (d)
358,792,838
--------------
CONGLOMERATES - 0.55%
15,000,000 BASF AG, 4.55%, 14,996,208
4/3/06 (c) (d)
30,000,000 BASF AG, 4.60%, 29,850,500
5/10/06 (c) (d) --------------
44,846,708
--------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
FINANCE - AUTOMOTIVE - 1.10%
$90,000,000 Toyota Motor Credit $ 89,965,500
Corp., 4.60%, --------------
4/4/06 (d)
FINANCE - DIVERSIFIED DOMESTIC - 3.69%
50,000,000 American Express 49,938,333
Credit Corp., 4.44%,
4/11/06 (d)
46,000,000 American Express 45,777,130
Credit Corp., 4.59%,
5/9/06 (d)
18,000,000 Citigroup Financial, 17,990,940
Inc., 4.53%, 4/5/06 (d)
60,000,000 Citigroup Financial, 59,652,000
Inc., 4.64%,
5/16/06 (d)
50,000,000 General Electric Capital 49,931,708
Corp., 4.47%,
4/12/06 (d)
80,000,000 General Electric Capital 79,473,001
Corp., 4.65%, --------------
5/22/06 (d)
302,763,112
--------------
FINANCE - DIVERSIFIED FOREIGN - 8.84%
100,000,000 Dexia Delaware LLC, 99,606,472
4.57%, 5/2/06 (d)
70,000,000 Dexia Delaware LLC, 69,291,406
4.80%, 6/16/06 (d)
50,000,000 HBOS Treasury Services 49,492,806
PLC, 4.81%,
6/16/06 (d)
50,000,000 ING Funding LLC, 49,974,889
4.52%, 4/5/06 (d)
100,000,000 Northern Rock PLC, 99,605,181
4.59%, 5/2/06 (c) (d)
90,000,000 Northern Rock PLC, 89,290,525
4.81%, 5/30/06 (c) (d)
100,000,000 Rabobank USA Finance 99,776,999
Corp., 4.46%,
4/19/06 (d)
60,000,000 Societe Generale N.A., 59,645,800
4.62%, 5/17/06 (d)
60,000,000 Svenska Handelsbank, 59,652,750
Inc., 4.63%,
5/16/06 (d)
49,000,000 Svenska Handelsbank, 48,510,000
Inc., 4.80%, --------------
6/15/06 (d)
724,846,828
--------------
FOOD & BEVERAGE - 1.67%
40,000,000 Concentrate 39,974,333
Manufacturing,
4.62%, 4/6/06 (c) (d)
24
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$97,200,000 Nestle Capital Corp., $ 97,005,600
4.50%, 4/17/06 (c) (d) --------------
136,979,933
--------------
GOVERNMENT - DOMESTIC - 0.29%
24,000,000 Private Export Funding, 23,865,900
4.47%, 5/16/06 (c) (d) --------------
MANUFACTURING - 1.04%
650,000 Paccar Financial Corp., 649,124
4.41%, 4/12/06 (d)
18,250,000 Paccar Financial Corp., 18,173,548
4.57%, 5/4/06 (d)
66,771,000 Paccar Financial Corp., 66,429,726
4.60%, 5/11/06 (d) --------------
85,252,398
--------------
TRANSPORTATION - 0.43%
35,000,000 Network Rail 34,978,174
Infrastructure Finance --------------
PLC, 4.49%,
4/6/06 (c) (d)
TOTAL COMMERCIAL PAPER 3,647,524,277
(Cost $3,647,524,277) --------------
CERTIFICATES OF DEPOSIT - 32.50%
BANKS - AUSTRALIA/NEW ZEALAND - 0.30%
25,000,000 Australia and New 25,000,000
Zealand Banking --------------
Group, 4.78%,
6/23/06 (b) (c)
BANKS - CANADA - 4.94%
70,000,000 Bank of Montreal, 70,000,000
4.56%, 4/10/06
75,000,000 Bank of Nova Scotia, 75,000,000
4.79%, 5/10/06, (LOC
Bank of Nova Scotia)
25,000,000 Canadian Imperial 24,999,940
Bank, 4.47%,
4/4/06 (b)
80,000,000 Canadian Imperial 80,000,108
Bank, 4.50%,
4/11/06, (LOC
Canadian Imperial
Bank, NY Branch)
25,000,000 Canadian Imperial 25,000,000
Bank, 4.74%, 5/25/06
50,000,000 Canadian Imperial 50,000,000
Bank, 5.09%, 3/5/07
80,000,000 Toronto Dominion 80,000,838
Bank, 5.10%, 10/4/06 --------------
405,000,886
--------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
BANKS - DOMESTIC - 18.18%
$40,000,000 Bank of America, $ 40,000,000
4.76%, 5/30/06
50,000,000 Bank of New York, 50,000,000
4.67%, 4/10/07 (b)
100,000,000 Bank of the West, 100,000,000
4.65%, 5/10/06
50,000,000 Citibank N.A., 4.89%, 50,000,000
6/22/06
100,000,000 First Tennessee Bank, 100,000,000
4.70%, 4/20/06
70,000,000 First Tennessee Bank, 70,000,000
4.73%, 5/23/06
60,000,000 Harris Trust & Savings 60,000,000
Bank, 4.55%, 4/4/06
100,000,000 Harris Trust & Savings 100,000,000
Bank, 4.78%, 5/17/06
100,000,000 HSBC Bank USA, 100,000,000
4.67%, 5/9/06
45,000,000 HSBC Bank USA, 45,000,241
4.68%, 5/10/06
50,000,000 Marshall & Ilsley Bank, 49,990,345
4.88%, 9/25/06 (b)
100,000,000 Marshall & Ilsley Bank, 100,000,000
4.87%, 6/19/06
50,000,000 Marshall & Ilsley Bank, 50,003,843
4.49%, 3/26/07 (b)
50,000,000 Mercantile Safe 50,000,000
Deposit and Trust Co.,
4.69%, 7/12/06 (b)
50,000,000 Mercantile Safe 50,000,000
Deposit and Trust Co.,
4.65%, 2/9/07 (b)
65,000,000 National City Bank, 65,013,542
4.63%, 9/1/06 (b)
100,000,000 National City Bank, 100,011,615
4.81%, 9/1/06 (b)
50,000,000 US Bank, NA, 4.66%, 50,005,593
7/28/06 (b)
45,000,000 Washington Mutual 45,000,000
Bank, 4.75%, 5/10/06
50,000,000 Washington Mutual 50,000,000
Bank, 4.69%, 5/17/06
25,000,000 Wells Fargo Bank, 25,006,609
4.98%, 6/12/06 (b)
15,000,000 Wells Fargo Bank, 15,000,000
5.12%, 3/9/07
50,000,000 Wells Fargo Bank, 50,000,000
4.74%, 4/13/07 (b) (c)
75,000,000 World Savings Loan, 75,000,000
4.62%, 4/17/06 --------------
1,490,031,788
--------------
25
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
BANKS - FOREIGN - 7.74%
$75,000,000 Bank of Nova Scotia, $ 75,008,349
4.72%, 2/14/07 (b)
80,000,000 Barclays Bank PLC, 79,999,168
4.71%, 4/18/06 (b)
60,000,000 Barclays Bank PLC, 60,000,000
5.09%, 2/28/07
25,000,000 Calyon Bank, 25,000,182
4.73%, 5/24/06
70,000,000 Calyon Bank, 5.01%, 70,001,574
9/14/06
10,000,000 Calyon New York, 9,999,137
4.30%, 4/26/06
55,000,000 Credit Suisse First 55,000,000
Boston USA, Inc.,
4.49%, 4/10/06
50,000,000 Credit Suisse First 50,001,927
Boston USA, Inc.,
4.81%, 1/17/07
95,000,000 Deutsche Bank, 95,000,600
4.70%, 5/17/06
100,000,000 Lloyds TSB Bank PLC, 99,999,999
4.74%, 5/25/06
15,000,000 Royal Bank of 14,998,322
Scotland, 4.45%, --------------
9/22/06 (b)
635,009,258
--------------
FINANCE - DIVERSIFIED FOREIGN -1.34%
50,000,000 HBOS Treasury 50,001,334
Services, 4.75%,
10/17/06
20,000,000 Rabobank Nederland, 19,998,386
4.60%, 6/15/06
40,000,000 Rabobank Nederland, 39,999,513
4.63%, 6/22/06 --------------
109,999,233
--------------
TOTAL CERTIFICATES OF DEPOSIT 2,665,041,165
(Cost $2,665,041,165) --------------
CORPORATE BONDS - 21.27%
BANKS - AUSTRALIA/NEW ZEALAND - 1.22%
100,000,000 National Australia 100,000,000
Bank, 4.64%, --------------
3/7/07 (b) (c)
BANKS - DOMESTIC - 1.34%
50,000,000 Bank of America 50,000,000
Corp., 4.78%, 6/1/06
60,000,000 Westpac Banking 60,000,000
Corp., 4.72%, --------------
2/16/07 (b) (c)
110,000,000
--------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
BANKS - FOREIGN - 1.52%
$24,500,000 Royal Bank of $ 24,499,902
Scotland, 4.58%,
4/5/06 (b)
100,000,000 Royal Bank of 100,000,000
Scotland, 4.75%, --------------
5/16/06 (b) (c)
124,499,902
--------------
FINANCE - AUTOMOTIVE - 1.77%
20,000,000 American Honda 19,998,857
Finance Corp., 2.88%,
4/3/06
40,000,000 American Honda 40,000,000
Finance Corp., 4.90%,
6/22/06 (b)
25,000,000 American Honda 25,000,000
Finance Corp., 4.68%,
8/8/06 (b)
60,000,000 American Honda 60,013,728
Finance Corp., 4.77%, --------------
8/11/06 (b)
145,012,585
--------------
FINANCE - DIVERSIFIED DOMESTIC - 4.40%
40,425,000 Goldman Sachs Group, 40,429,326
4.78%, 4/20/06 (b)
100,000,000 Goldman Sachs Group, 100,019,915
4.67%, 8/1/06 (b)
100,000,000 Merrill Lynch & Co., 100,013,174
4.86%, 5/25/06 (b)
40,000,000 Merrill Lynch & Co., 40,008,456
4.98%, 6/16/06 (b)
20,000,000 Merrill Lynch & Co., 20,006,312
5.09%, 6/30/06 (b)
60,212,000 Morgan Stanley, 60,252,751
6.10%, 4/15/06 --------------
360,729,934
--------------
FINANCE - DIVERSIFIED FOREIGN - 3.11%
100,000,000 HBOS Treasury 100,017,915
Services, 4.80%,
8/28/06 (b)
50,000,000 ING Funding LLC, 49,739,444
4.69%, 5/11/06 (d)
36,000,000 ING Funding LLC, 35,763,105
4.65%, 5/22/06 (d)
57,950,000 Nationwide Building 58,009,397
Society, 3.95%,
12/11/06 (b) (c)
10,200,000 Nationwide Building 9,996,273
Society, 2.63%,
1/30/07 (c)
1,300,000 Rio Tinto Finance, 1,302,567
5.75%, 7/3/06 --------------
254,828,701
--------------
26
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
INFORMATION TECHNOLOGY - 0.98%
$80,000,000 IBM Corp., 4.68%, $ 80,000,000
4/5/07 (b) --------------
INSURANCE - 5.28%
24,000,000 John Hancock Global 24,016,616
Funding II, 4.95%,
7/17/06 (b)
5,000,000 John Hancock Global 5,002,971
Funding II, 4.89%,
8/14/06 (b)
10,000,000 Met Life Global 10,006,553
Funding I, 4.96%,
8/28/06 (b) (c)
110,000,000 Monument Global 110,013,486
Funding II, 4.90%,
9/14/06 (b) (c)
80,000,000 Monument Global 80,013,914
Funding II, 4.97%,
12/27/06 (b) (c)
30,000,000 Principal Life, Inc. 30,028,273
Fund, 4.88%,
11/13/06 (b)
75,000,000 Principal Life, Inc. 74,996,659
Funding, 4.57%,
7/14/06 (b)
100,000,000 Principal Life, Inc. 99,997,666
Global, 4.71%, --------------
11/13/06 (b)
434,076,138
--------------
MANUFACTURING - 0.92%
75,000,000 BMW US Capital LLC, 75,045,569
4.15%, 6/7/06 --------------
PHARMACEUTICALS - 0.73%
10,000,000 Abbott Laboratories, 10,021,624
5.63%, 7/1/06
50,000,000 Eli Lilly Services, Inc., 50,000,000
4.60%, 9/1/06 (b) --------------
60,021,624
--------------
TOTAL CORPORATE BONDS 1,744,214,453
(Cost $1,744,214,453) --------------
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.43%
FEDERAL HOME LOAN BANK - 0.43%
35,000,000 4.77%, 6/12/06 (b) (e) 34,997,253
-------------
TOTAL U.S. GOVERNMENT AGENCY 34,997,253
OBLIGATIONS -------------
(Cost $34,997,253)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
MUNICIPAL BONDS - 0.28%
VIRGINIA - 0.28%
$22,700,000 Arlington County $ 22,700,000
Industrial Development --------------
Revenue, 4.92%,
8/1/31, (LOC Bank of
America) (b)
TOTAL MUNICIPAL BONDS 22,700,000
(Cost $22,700,000) --------------
INVESTMENT COMPANIES - 0.06%
5,058,614 Wells Fargo Prime 5,058,614
Investment Money --------------
Market Fund
TOTAL INVESTMENT COMPANIES 5,058,614
(Cost $5,058,614) --------------
INVESTMENT OF CASH COLLATERAL FOR SECURITIES ON
LOAN - 0.44%
$36,190,415 Morgan Stanley 36,190,415
Money Market --------------
Repurchase
Agreement, dated
4/3/06 at 4.93% with
maturity value of
$36,205,268, (fully
collateralized by
commercial paper with
interest rates ranging
from 4.22% to 4.59%
and maturity dates
ranging from 4/4/06 to
1/11/11)
TOTAL INVESTMENT OF CASH 36,190,415
COLLATERAL FOR SECURITIES ON LOAN --------------
(Cost $36,190,415)
REPURCHASE AGREEMENTS - 0.24%
$20,000,000 Merrill Lynch dated 20,000,000
4/3/06 at 4.75% with --------------
maturity value of
$20,007,917 (fully
collateralized by
Federal Home Loan
Mortgage Corp.,
3.83%, 1/18/08)
TOTAL REPURCHASE AGREEMENTS 20,000,000
(Cost $20,000,000) --------------
27
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
TOTAL INVESTMENTS 8,325,235,215
(Cost $8,325,235,215) (a) --
101.53%
LIABILITIES IN EXCESS OF OTHER (125,364,607)
ASSETS - (1.53)% --------------
NET ASSETS - 100.00% $8,199,870,608
==============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on March 31, 2006. The maturity date
represents the actual maturity date.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. Securities have
been deemed to be liquid based on procedures approved by the Board of
Trustees.
(d) Rate represents the effective yield at purchase.
(e) All or part of this security has been loaned as of March 31, 2006.
Abbreviations used are defined below:
LOC = Letter of Credit
LLC = Limited Liability
SEE NOTES TO FINANCIAL STATEMENTS.
28
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack U.S. Government Money Market Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 76.18%
FEDERAL FARM CREDIT BANK - 6.22%
$50,000,000 4.64%, 9/22/06 (b) $ 49,992,991
--------------
FEDERAL HOME LOAN BANK - 12.40%
50,000,000 4.77%, 6/12/06 (b) 49,997,853
5,000,000 4.77%, 6/13/06 (b) 4,999,611
25,000,000 4.77%, 6/16/06 (d) 24,751,153
10,000,000 3.71%, 6/28/06 9,978,349
10,000,000 3.25%, 7/21/06 9,983,849
--------------
99,710,815
--------------
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 28.07%
45,000,000 4.45%, 4/10/06 (d) 44,950,275
20,000,000 4.41%, 4/11/06 (d) 19,975,778
25,386,000 2.27%, 4/28/06 25,343,401
35,000,000 4.57%, 5/1/06 (d) 34,867,583
30,000,000 4.84%, 7/3/06 29,632,185
35,825,000 2.75%, 8/15/06 35,577,459
19,100,000 3.63%, 9/15/06 18,996,262
10,000,000 4.69%, 12/1/06 (d) 9,695,000
4,120,000 2.50%, 12/4/06 4,050,762
2,625,000 2.88%, 12/15/06 2,587,875
--------------
225,676,580
--------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 29.49%
40,000,000 4.42%, 4/3/06 (d) 39,990,221
32,248,000 4.39%, 4/5/06 (d) 32,232,317
30,000,000 4.48%, 4/10/06 (d) 29,966,550
3,620,000 4.67%, 5/22/06 (b) 3,619,724
25,000,000 4.66%, 5/31/06 (d) 24,808,125
997,000 1.75%, 6/16/06 991,199
15,000,000 4.58%, 7/19/06 (d) 14,796,533
25,000,000 2.75%, 8/11/06 24,833,110
25,000,000 4.55%, 9/7/06 (b) 24,999,054
30,000,000 4.73%, 9/7/06 (b) 29,997,291
11,000,000 4.38%, 10/15/06 10,966,435
--------------
237,200,559
--------------
TOTAL U.S. GOVERNMENT AGENCY 612,580,945
OBLIGATIONS --------------
(Cost $612,580,945)
COMMERCIAL PAPER - 11.74%
GOVERNMENT - DOMESTIC - 11.74%
10,000,000 Private Export Funding, 9,960,733
4.61%, 5/2/06 (c) (d)
50,000,000 Private Export Funding, 49,718,889
4.65%, 5/15/06 (c) (d)
20,000,000 Private Export Funding, 19,888,250
4.47%, 5/16/06 (c) (d)
15,000,000 Private Export Funding, 14,856,129
4.79%, 6/13/06 (c) (d) --------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
TOTAL COMMERCIAL PAPER $ 94,424,001
(Cost $94,424,001) --------------
INVESTMENT COMPANIES - 0.39%
3,108,050 Wells Fargo 3,108,050
Government --------------
Institutional Money
Market Fund
TOTAL INVESTMENT COMPANIES 3,108,050
(Cost $3,108,050) --------------
REPURCHASE AGREEMENTS - 12.44%
$100,000,000 Merrill Lynch dated 100,000,000
4/3/06 at 4.75% with -------------
maturity value of
$100,039,853 (fully
collateralized by
Federal Home Loan
Mortgage Corp.,
3.83%, 1/18/08)
TOTAL REPURCHASE AGREEMENTS 100,000,000
(Cost $100,000,000) --------------
TOTAL INVESTMENTS 810,112,996
(Cost $810,112,996) (a) - 100.75%
LIABILITIES IN EXCESS OF OTHER (6,005,636)
ASSETS - (0.75)% --------------
NET ASSETS - 100.00% $ 804,107,360
==============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on March 31, 2006. The maturity date
represents the actual maturity date.
(c) Securities exempt from registration under Rule 144A of the Securities Act
of 1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. Securities
have been deemed to be liquid based on procedures approved by the Board of
Trustees.
(d) Rate represents the effective yield at purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
29
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
MUNICIPAL BONDS - 86.77%
ALABAMA - 0.66%
$ 2,200,000 City of Birmingham, $ 2,200,000
3.19%, 10/1/15,
(AMBAC Insured) (b)
3,265,000 Mobile Industrial 3,265,000
Development Board --------------
Dock & Wharf Revenue,
3.18%, 6/1/32, (LOC
Wachovia Bank) (b)
5,465,000
--------------
ARIZONA - 2.22%
11,600,000 Apache County IDR, 11,600,000
3.16%, 12/15/18, (LOC
Credit Suisse First
Boston) (b)
1,310,000 Glendale IDR, 1,310,000
3.19%, 12/1/14, (LOC
Wells Fargo Bank) (b)
3,000,000 Phoenix IDA, 3,000,000
3.17%, 10/1/29,
(FHLMC Insured) (b)
2,500,000 Phoenix IDA, 2,500,000
3.18%, 1/1/31, (LOC --------------
Wells Fargo Bank) (b)
18,410,000
--------------
CALIFORNIA - 0.08%
650,000 Hesperia Public 650,000
Financing Authority --------------
Lease Revenue,
3.25%, 6/1/22, (LOC
Bank of America) (b)
COLORADO - 4.65%
3,400,000 Adams County IDR, 3,400,000
3.18%, 11/1/08, (LOC
Citigroup) (b)
1,295,000 Boulder County 1,295,000
Revenue (Mental Health
Center), 3.19%,
2/15/25, (LOC Wells
Fargo Bank) (b)
1,260,000 Colorado Springs 1,260,000
Revenue (Pikes Peak
Mental Health), 3.19%,
3/15/23, (LOC Wells
Fargo Bank) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 5,000,000 Commerce City $5,000,000
Northern Infrastructure
General Improvement,
3.20%, 12/1/28, (LOC
U.S. Bank) (b)
1,940,000 Crystal Valley 1,940,000
Metropolitan District,
3.19%, 10/1/34, (LOC
Wells Fargo Bank) (b)
3,900,000 Douglas County MFHR 3,900,000
(Autumn Chase),
3.18%, 12/1/29, (LOC
Freddie Mac) (b)
2,400,000 Educational & Cultural 2,400,000
Facilities Authority
Revenue (Shambhala
Mountain Center
Project), 3.19%, 6/1/30,
(LOC Wells Fargo
Bank) (b)
920,000 Jefferson County 920,000
Revenue, 3.19%,
6/1/10, (LOC Wells
Fargo Bank) (b)
2,310,000 NBC Metropolitan 2,310,000
District, 3.27%,
12/1/30, (LOC U.S.
Bank) (b)
7,600,000 Pinery West 7,600,000
Metropolitan District,
3.25%, 11/1/32, (LOC
U.S. Bank) (b)
3,725,000 State Educational & 3,725,000
Cultural Facilities
Authority (Denver Art
Museum Project),
3.19%, 1/1/34, (LOC
Wells Fargo Bank) (b)
285,000 State Educational & 285,000
Cultural Facilities
Authority (Regis Jesuit
High School),
3.19%, 12/1/33, (LOC
Wells Fargo Bank) (b)
1,250,000 State Health Facilities 1,250,000
Authority Revenue
(Arapahoe House
Project), 3.24%, 4/1/24,
(LOC Wells Fargo
Bank) (b)
30
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 630,000 State Health Facilities $ 630,000
Authority Revenue (The
Visiting Nurse Corp.),
3.23%, 7/1/22, (LOC
Wells Fargo Bank) (b)
2,600,000 University of Colorado 2,600,000
Hospital Authority --------------
Revenue, Series B,
3.18%, 11/15/35, (LOC
Wells Fargo Bank) (b)
38,515,000
--------------
DELAWARE - 0.80%
6,500,000 State Health Facilities 6,597,836
Authority Revenue,
6.25%, 10/1/06, (MBIA
Insured)
DISTRICT OF COLUMBIA - 1.02%
4,040,000 District Revenue Pooled 4,040,000
Loan, 3.18%, 1/1/29,
(LOC Bank of
America) (b)
4,400,000 Series D GO, 4,400,000
3.20%, 6/1/31, (MBIA --------------
Insured) (b)
8,440,000
--------------
FLORIDA - 4.44%
6,100,000 Collier County Health 6,100,000
Facilities Authority (The
Moorings, Inc.), 3.18%,
12/1/24, (LOC Wachovia
Bank) (b)
3,590,000 Dade County Water & 3,590,000
Sewer Systems
Revenue, 3.16%,
10/5/22, (FGIC
Insured) (b)
3,765,000 Jacksonville Health 3,765,000
Facilities Authority
Hospital Revenue,
3.15%, 8/15/19, (MBIA
Insured) (b)
3,500,000 Palm Beach County 3,500,000
Housing Finance
Authority, 3.18%,
11/1/07, (LOC Credit
Suisse First Boston) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 4,000,000 St. Johns County $ 4,000,000
Housing Finance
Authority, 3.19%,
2/15/28, (FNMA
Insured) (b)
10,790,000 State Board of 10,822,390
Education Public
Education, 5.00%,
6/1/06
5,000,000 West Orange Health 5,000,000
District Revenue, --------------
3.17%, 2/1/22, (LOC
Suntrust Bank) (b)
36,777,390
--------------
GEORGIA - 4.75%
5,800,000 Clayton County MFHR 5,800,000
(BS Partners), 3.18%,
9/1/26, (FNMA
Insured) (b)
1,000,000 DeKalb County 1,000,000
Development Authority
Revenue, 3.18%,
6/1/20, (LOC Wachovia
Bank) (b)
6,475,000 DeKalb County Housing 6,475,000
Authority Revenue,
3.18%, 1/1/34, (FHLMC
Insured) (b)
1,500,000 DeKalb Private Hospital 1,500,000
Authority (Children's
Health Care Project),
3.18%, 12/1/17, (LOC
Suntrust Bank) (b)
2,000,000 DeKalb Private Hospital 2,000,000
Authority (Children's
Health Care Project),
3.18%, 12/1/28, (LOC
Suntrust Bank) (b)
2,100,000 DeKalb Private Hospital 2,100,000
Authority (Egleston
Children's Hospital),
3.18%, 3/1/24, (LOC
Suntrust Bank) (b)
6,000,000 Downtown Savannah 6,000,000
Authority Revenue,
3.18%, 10/1/07, (LOC
Wachovia Bank) (b)
5,300,000 Marietta MFHR, 5,300,000
3.18%, 5/15/07, (FNMA
Collateralized) (b)
31
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 9,225,000 Marietta MFHR, $ 9,225,000
3.19%, 7/1/24, (FNMA --------------
Collateralized) (b)
39,400,000
--------------
IDAHO - 2.65%
15,000,000 Idaho Tax Anticipation 15,048,993
Notes, 4.00%, 6/30/06,
(LOC U.S. Bank)
6,920,000 State University 6,920,000
Foundation, Inc. --------------
Revenue, 3.19%,
5/1/21, (LOC Wells
Fargo Bank) (b)
21,968,993
--------------
ILLINOIS - 11.83%
4,700,000 Galesburg Revenue 4,700,000
(Knox College),
3.20%, 3/1/31, (LOC
LaSalle Bank) (b)
4,575,000 Health Facilities 4,575,000
Authority Revenue,
3.19%, 1/1/16, (LOC JP
Morgan Chase Bank) (b)
10,165,000 Jackson Union 10,165,000
Counties, 3.20%,
4/1/24, (LOC Wachovia
Bank) (b)
4,000,000 State Development 4,000,000
Finance Authority PCR,
3.28%, 9/1/08, (LOC JP
Morgan Chase Bank) (b)
29,535,000 State Development 29,535,000
Finance Authority
Revenue, 3.18%,
1/1/18, (FSA Insured) (b)
6,800,000 State Development 6,800,000
Finance Authority
Revenue (Provena
Health), Series C,
3.16%, 5/1/28, (MBIA
Insured) (b)
5,100,000 State Finance Authority 5,100,000
Revenue, 3.18%,
4/1/35, (LOC Bank
One) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$10,500,000 State Finance Authority $ 10,500,000
Revenue (Chicago
Historical Society),
3.22%, 1/1/36, (LOC JP
Morgan Chase Bank) (b)
3,460,000 State Health Facilities 3,460,000
Authority Revenue
(Loyola University
Health System),
3.16%, 7/1/24, (MBIA
Insured) (b)
10,100,000 State Health Facilities 10,100,000
Authority (St. Lukes
Medical Center),
3.20%, 11/15/23,
(MBIA Insured) (b)
9,170,000 State Toll Highway 9,170,000
Authority Revenue, --------------
3.16%, 1/1/10, (MBIA
Insured) (b)
98,105,000
--------------
INDIANA - 2.05%
3,700,000 Indianapolis Public 3,700,000
Improvement Revenue,
3.16%, 2/1/20, (MBIA
Insured) (b)
1,950,000 State Health Facilities 1,950,000
Finance Authority
Revenue (Anthony
Wayne Rehabilitation
Center), 3.19%, 2/1/31,
(LOC Wells Fargo
Bank) (b)
100,000 State Health Facilities 100,000
Finance Authority
Revenue (Capital Access
Designated Pool),
3.19%, 1/1/12, (LOC
Comerica Bank) (b)
250,000 State Health Facilities 250,000
Finance Authority
Revenue (Deaconess
Hospital), 3.18%,
1/1/22, (LOC Fifth Third
Bank) (b)
4,530,000 State Hospital 4,530,000
Equipment Financing
Authority Revenue,
3.19%, 12/1/15, (MBIA
Insured) (b)
32
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 6,470,000 Vincennes University $ 6,470,000
Revenue, 3.19%, --------------
10/1/22, (LOC Bank
One Indiana) (b)
17,000,000
--------------
IOWA - 5.96%
3,010,000 State Finance Authority 3,010,000
Revenue (Mississippi
Valley Regional Blood
Center), 3.19%, 2/1/23,
(LOC Wells Fargo
Bank) (b)
1,615,000 State Finance Authority 1,615,000
Revenue (Putnam
Museum of History),
3.19%, 5/1/12, (LOC
Wells Fargo Bank) (b)
2,485,000 State Finance Authority 2,485,000
Revenue (YMCA &
Rehabilitation Center),
3.23%, 4/1/25, (LOC
Bank of America) (b)
5,200,000 State Higher Education 5,200,000
Authority Revenue
(Cornell College),
3.19%, 11/1/16, (LOC
Wells Fargo Bank) (b)
915,000 State Higher Education 915,000
Authority Revenue
(Loras College), 3.18%,
11/1/30, (LOC LaSalle
Bank) (b)
8,090,000 State Higher Education 8,090,000
Authority Revenue
(Palmer Chiropractic),
3.20%, 4/1/27, (LOC
LaSalle Bank) (b)
1,000,000 State Higher Education 1,000,000
Loan Authority Revenue
(Private Colleges),
3.18%, 11/1/32, (LOC
LaSalle Bank) (b)
14,000,000 State School Cash 14,045,027
Anticipation Program,
4.00%, 6/28/06, (FSA
Insured)
7,500,000 State School Cash 7,576,993
Anticipation Program,
4.50%, 1/26/07, (FSA
Insured)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 2,150,000 Webster County $ 2,150,000
Educational Facilities
Revenue, 3.19%,
7/1/20, (LOC Wells
Fargo Bank) (b)
3,340,000 Woodbury County 3,340,000
(Siouxland Regional --------------
Cancer Center), 3.19%,
12/1/14, (LOC Wells
Fargo Bank) (b)
49,427,020
--------------
KANSAS - 0.39%
1,500,000 Olathe Health Facilities 1,500,000
Revenue (Olathe
Medical Center),
3.18%, 9/1/32,
(AMBAC Insured) (b)
1,760,000 University of Kansas 1,760,000
Hospital Authority --------------
Health Facilities
Revenue (KU Health
Systems), 3.18%,
9/1/34, (LOC Harris
Trust) (b)
3,260,000
--------------
KENTUCKY - 0.58%
4,830,000 Louisville & Jefferson 4,830,000
County Sewer and --------------
Drain Systems Revenue,
3.16%, 5/15/23, (FSA
Insured) (b)
LOUISIANA - 0.83%
2,800,000 Lake Charles Harbor & 2,800,000
Revenue (Conoco Inc.),
3.20%, 9/1/29, (LOC JP
Morgan Chase Bank) (b)
4,105,000 State Offshore Terminal 4,105,000
Authority Deepwater --------------
Port Revenue (Loop LLC
Project), 3.18%,
10/1/19, (LOC JP
Morgan Chase Bank) (b)
6,905,000
--------------
33
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
MARYLAND - 1.94%
$13,050,000 Montgomery County $ 13,050,000
Housing Opportunities
MFHR (Oakwood
Apartments), 3.19%,
11/1/07, (LOC Freddie
Mac) (b)
3,000,000 State Health & Higher 3,000,000
Educational Facilities, --------------
3.18%, 4/1/35, (LOC
U.S. Bank) (b)
16,050,000
--------------
MASSACHUSETTS - 0.39%
600,000 State Health & 600,000
Educational Facilities
Authority Revenue
(Capital Assets
Program), 3.16%,
1/1/19, (MBIA
Insured) (b)
2,600,000 State Water Resource 2,600,000
Authority, 3.17%, --------------
11/1/26, (FGIC
Insured) (b)
3,200,000
--------------
MICHIGAN - 2.45%
1,800,000 City of Detroit Sewer 1,800,000
Disposal Revenue,
3.17%, 7/1/29, (MBIA
Insured) (b)
3,695,000 Eastern Michigan 3,695,000
University, 3.18%,
6/1/27, (FGIC
Insured) (b)
1,645,000 Northern Michigan 1,645,000
University Revenues
Bonds, 3.18%, 6/1/31,
(FGIC Insured) (b)
1,485,000 State Housing 1,485,000
Development Authority
(Rental Housing),
3.16%, 4/1/24, (MBIA
Insured) (b)
3,015,000 State Strategic Fund 3,015,000
(Clark Retirement),
3.17%, 6/1/31, (LOC
Fifth Third Bank) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 8,635,000 University of Michigan $ 8,635,000
Revenue, 3.16%, --------------
4/1/32 (b)
20,275,000
--------------
MINNESOTA - 6.46%
2,400,000 Brown County Revenue 2,400,000
(Martin Luther College),
3.14%, 9/1/24, (LOC
Wells Fargo Bank) (b)
2,170,000 City of Maple Grove 2,170,000
MFHR, 3.14%, 11/1/31,
(LOC Wells Fargo
Bank) (b)
555,000 City of Minneapolis 555,000
MFHR, 3.14%, 12/1/27,
(LOC Wells Fargo
Bank) (b)
6,455,000 Inver Grove Heights 6,455,000
Senior Housing
Revenue, 3.19%,
5/15/35, (FNMA
Insured) (b)
1,500,000 Mendota Heights 1,500,000
Housing Mortgage
Revenue, 3.14%,
11/1/31, (LOC Wells
Fargo Bank) (b)
6,290,000 Midwest Consortium of 6,290,000
Minneapolis Municipal
Utilities Revenue,
3.19%, 1/1/25, (LOC
U.S. Bank) (b)
5,000,000 Midwest Consortium of 5,000,000
Minneapolis Municipal
Utilities Revenue,
3.19%, 10/1/35, (LOC
U.S. Bank) (b)
9,010,000 Minneapolis Housing 9,010,000
Development Revenue
(Ochestra Hall
Associates),
3.18%, 12/1/14,
(FHLMC Insured) (b)
895,000 Minneapolis Revenue 895,000
(Catholic Charities
Projects), 3.19%,
11/1/16, (LOC Wells
Fargo Bank) (b)
34
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 4,000,000 Oak Park Heights MFHR $ 4,000,000
(Boutwells Landing),
3.19%, 11/1/35, (LOC
Freddie Mac) (b)
2,340,000 St. Paul Housing & 2,340,000
Redevelopment
Authority Revenue
(Science Museum
Project), 3.21%, 5/1/27,
(LOC U.S. Bank) (b)
820,000 State Higher Education 820,000
Facilities Authority
Revenue (St. Olaf
College), 3.18%,
10/1/20, (LOC Harris
Trust & Savings
Bank) (b)
4,515,000 State Higher Education 4,515,000
Facilities Authority
Revenue (William
Mitchell), 3.19%,
10/1/33, (LOC U.S.
Bank) (b)
2,625,000 State Higher Eduction 2,625,000
Facilities Authority
Revenue (College of St.
Scholastica, Inc.),
3.18%, 12/1/34, (LOC
M&I Bank) (b)
5,000,000 State School Districts 5,022,759
Tax & Aid Anticipation --------------
Borrowing Program
Certificates, 4.00%,
9/12/06, (School District
Credit Program Insured)
53,597,759
--------------
MISSISSIPPI - 0.12%
1,000,000 Jackson County PCR, 1,000,000
3.15%, 6/1/23, (Obligor --------------
Chevron Texaco
Corp.) (b)
MISSOURI - 1.42%
3,150,000 Independence Industrial 3,150,000
Development Authority
MFHF (Mansions
Project), 3.19%, 8/1/35,
(LOC Freddie Mac) (b)
2,000,000 St. Charles County IDA, $2,000,000
3.17%, 2/1/29, (FNMA
Insured) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 3,500,000 State Health & $ 3,500,000
Educational Facilities
Authority, 3.18%,
11/1/32, (LOC Bank of
America) (b)
3,000,000 University of Missouri 3,097,634
Health Facilities --------------
Revenue, 5.50%,
11/1/16, (AMBAC
Insured) Prerefunded
11/1/06 @ 102
11,747,634
--------------
MONTANA - 0.61%
5,050,000 State Health Facilities 5,050,000
Authority Revenue --------------
(Health Care Pooled
Loan Program), 3.19%,
12/1/15, (FGIC
Insured) (b)
NEBRASKA - 1.27%
3,445,000 Lancaster County 3,445,000
Hospital Authority
Revenue (Bryan Leigh
Medical Center Project),
3.18%, 6/1/18,
(AMBAC Insured) (b)
3,450,000 Scotts Bluff County 3,450,000
Hospital Authority
Revenue, 3.22%,
12/1/31, (GNMA
Insured) (b)
3,600,000 State Educational 3,600,000
Finance Authority --------------
Revenue (Creighton
University Project),
3.18%, 3/1/33,
(AMBAC Insured) (b)
10,495,000
--------------
NEVADA - 0.89%
7,300,000 Clark County School 7,414,169
District, 6.00%, --------------
6/15/15, (FGIC Insured)
Prerefunded 6/15/06
@ 101
35
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
NEW HAMPSHIRE - 0.35%
$ 980,000 State Health & $ 980,000
Educational Facilities
Revenue, 3.17%,
7/1/21, (LOC JP Morgan
Chase Bank) (b)
1,940,000 State Health & 1,940,000
Educational Facilities --------------
Revenue, 3.16%,
8/1/31, (FSA Insured) (b)
2,920,000
--------------
NEW JERSEY - 2.42%
20,000,000 State Tax & Revenue 20,054,411
Anticipation Notes, --------------
4.00%, 6/23/06, (LOC
JP Morgan Chase Bank)
NEW MEXICO - 0.08%
700,000 New Mexico Housing 700,000
Authority MFHR --------------
(Arbors/Courtyard
Apartments), 3.19%,
1/15/33, (LOC
FNMA) (b)
NORTH CAROLINA - 2.85%
2,765,000 Charlotte Airport 2,765,000
Revenue, Series A,
3.16%, 7/1/16, (MBIA
Insured) (b)
2,300,000 City of Greensboro 2,300,000
Enterprise System
Revenue, 3.20%,
6/1/24, (LOC Bank of
America) (b)
2,165,000 State Educational 2,165,000
Facilities Agency
Revenue, 3.20%,
1/1/19, (LOC Bank of
America) (b)
2,800,000 State Medical Care 2,800,000
Commission Revenue,
3.18%, 10/1/16, (LOC
Wachovia Bank) (b)
13,600,000 State Medical Care 13,600,000
Commission Revenue, --------------
3.16%, 11/1/32, (LOC
Suntrust Bank) (b)
23,630,000
--------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
NORTH DAKOTA - 0.19%
$ 1,545,000 Ward County Health $ 1,545,000
Care Facilities Revenue
(Trinity Group), 3.23%,
7/1/29, (LOC U.S.
Bank) (b)
OHIO - 1.42%
2,060,000 Franklin County 2,060,000
Hospital Revenue
(OhioHealth), 3.17%,
12/1/20, (LOC
Citigroup) (b)
2,535,000 Franklin County 2,535,000
Hospital Revenue
(OhioHealth),
3.18%, 12/1/28, (LOC
National City Bank) (b)
6,105,000 Lucas County Bond 6,105,936
Anticipation Notes,
3.05%, 10/11/06
1,100,000 University of Toledo 1,100,000
General Receipts Bonds, --------------
3.18%, 6/1/32, (FGIC
Insured) (b)
11,800,936
--------------
PENNSYLVANIA - 0.41%
3,000,000 Montgomery County 3,000,000
IDA (Gloria DEI Project),
3.19%, 1/1/23, (LOC
Citizens Bank) (b)
360,000 Schuylkill County IDA 360,000
(Northeast Power Co. --------------
Project), Series A,
3.18%, 12/1/22, (LOC
Dexia Group) (b)
3,360,000
--------------
SOUTH CAROLINA - 1.92%
2,800,000 Florence County 2,800,000
Hospital Revenue
(McLeod Regional
Medical Center),
3.17%, 11/1/15, (FGIC
Insured) (b)
3,600,000 State Job Development 3,600,000
Authority (Catholic
Diocese), 3.23%,
9/1/18, (LOC Bank of
America) (b)
36
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 895,000 State Job Development $ 895,000
Authority (Orangeburg
Regional Medical
Center), 3.16%,
2/15/28, (AMBAC
Insured) (b)
8,600,000 State MFHR (Charleston 8,600,000
Rental Housing), --------------
3.18%, 8/1/31, (FHLMC
Insured) (b)
15,895,000
--------------
TENNESSEE - 1.82%
3,745,000 Clarksville Public 3,745,000
Building Authority
Revenue, 3.18%,
11/1/27, (LOC Bank of
America) (b)
5,400,000 Hamilton County IDR 5,400,000
(Aquarium), 3.18%,
3/1/15, (LOC Bank of
America) (b)
2,345,000 Metropolitan 2,345,000
Government Nashville &
Davidson County,
3.18%, 8/1/18, (LOC
Bank of America) (b)
2,500,000 Montgomery County 2,500,000
Public Building
Authority Revenue,
3.17%, 2/1/36, (LOC
Bank of America) (b)
1,060,000 Sevier County Public 1,060,000
Building Authority, --------------
3.19%, 6/1/24, (LOC
AMBAC) (b)
15,050,000
--------------
TEXAS - 6.06%
1,050,000 Austin County Industrial 1,050,000
Development Corp.,
3.18%, 12/1/14, (LOC
JP Morgan Chase
Bank) (b)
2,620,000 City of Brownsville 2,620,000
Utility Systems Revenue,
3.16%, 9/1/27, (MBIA
Insured) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 975,000 Lufkin Health Facilities $ 975,000
Development Corp.,
3.18%, 2/15/35, (LOC
Wachovia Bank) (b)
1,300,000 San Antonio Health 1,300,000
Facilities Authority
Revenue (Clinical
Foundation Project),
3.19%, 6/1/20, (LOC
Wells Fargo Bank) (b)
1,400,000 Splendora Higher 1,400,000
Education Facilities
Revenue, 3.19%,
12/1/26, (LOC Wells
Fargo Bank) (b)
39,000,000 State Tax & Revenue 39,232,482
Anticipation Notes,
4.50%, 8/31/06
3,700,000 Tarrant County Housing 3,700,000
Finance Corp. Revenue, --------------
3.19%, 2/15/28, (FNMA
Insured) (b)
50,277,482
--------------
UTAH - 1.66%
2,135,000 Provo Municipal 2,135,000
Building Authority
Lease, 3.19%, 5/1/12,
(LOC Wells Fargo
Bank) (b)
11,625,000 Salt Lake City Revenue 11,625,000
(Valley Mental Health --------------
Project), 3.19%,
12/1/21, (LOC Wells
Fargo Bank) (b)
13,760,000
--------------
VIRGINIA - 0.77%
2,915,000 Alexandria IDA (Pooled 2,915,000
Loan Project), 3.18%,
7/1/26, (LOC Bank of
America) (b)
2,285,000 Hampton 2,285,000
Redevelopment &
Housing Authority
MFHR (Shoreline
Apartments Project),
3.19%, 12/1/19,
(FHLMC Insured) (b)
37
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 1,190,000 Louisa County IDA, $ 1,190,000
3.18%, 1/1/20, (LOC --------------
Bank of America) (b)
6,390,000
--------------
WASHINGTON - 3.72%
6,000,000 Snohomish County 6,000,000
Public Utility,
3.17%, 12/1/19, (FSA
Insured) (b)
10,655,000 State Health Care 10,655,000
Facilities Revenue
(Empire Health Services),
3.19%, 11/1/23, (LOC
U.S. Bank) (b)
5,600,000 State Housing & 5,600,000
Finance Commission
(Evergreen School
Project), 3.19%, 7/1/28,
(LOC Wells Fargo
Bank) (b)
1,100,000 State Housing & 1,100,000
Finance Commission
(Riverview Retirement
Project), 3.24%, 7/1/22,
(LOC U.S. Bank) (b)
790,000 State Housing & 790,000
Finance Commission
Nonprofit Housing
Revenue (Christa
Ministries), 3.24%,
7/1/11, (LOC U.S.
Bank) (b)
915,000 State Housing & 915,000
Finance Commission
Nonprofit Revenue
(Overlake School
Project), 3.19%,
10/1/29, (LOC Wells
Fargo Bank) (b)
5,820,000 State Public Power 5,820,000
Supply, 3.16%, 7/1/12, --------------
(MBIA Insured) (b)
30,880,000
--------------
WISCONSIN - 4.64%
10,000,000 Kenosha Unified School 10,002,357
District Number 001,
3.00%, 9/26/06
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 2,500,000 State Health & $ 2,500,000
Educational Facilities
Authority Revenue
(Goodwill North
Central),
3.19%, 11/1/25, (LOC
Wells Fargo Bank) (b)
3,025,000 State Health & 3,025,000
Educational Facilities
Authority Revenue
(Gundersen Lutheran),
3.18%, 12/1/29, (LOC
Dexia Group) (b)
650,000 State Health & 650,000
Educational Facilities
Authority Revenue
(Meriter Hospital),
3.23%, 12/1/32, (LOC
Marshall & Ilsley
Bank) (b)
1,800,000 State Health & 1,800,000
Educational Facilities
Authority Revenue
(ProHealth, Inc.),
3.18%, 8/15/30,
(AMBAC Insured) (b)
1,050,000 State Health & 1,050,000
Educational Facilities
Authority Revenue (St.
John's United Church),
3.24%, 2/1/30, (LOC
U.S. Bank) (b)
2,000,000 State Health & 2,000,000
Educational Facilities
Authority Revenue
(Wheaton Franciscan
Services),
3.18%, 8/15/33, (U.S.
Bancorp Insured) (b)
7,400,000 State Health & 7,400,000
Educational Facilities
Authority Revenue
(Wheaton Franciscan),
3.18%, 8/15/16, (FSA
Insured) (b)
10,000,000 State School Districts 10,060,389
Cash Flow Management --------------
Program Certificates of
Participation, Series A-1,
4.25%, 9/20/06, (LOC
U.S. Bank)
38,487,746
--------------
38
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS $ 719,331,376
(Cost $719,331,376) --------------
COMMERCIAL PAPER - 12.91%
FLORIDA - 7.19%
$ 7,500,000 Intermountain Power, 7,500,000
3.18%, 6/7/06, (LOC JP
Morgan Chase Bank)
7,800,000 Pinellas County 7,800,000
Education Finance
Authority, 3.11%,
5/22/06, (LOC Wachovia
Bank)
19,840,000 State Municipal Power, 19,840,000
3.10%, 4/4/06, (LOC
Wachovia Bank)
16,701,000 State Municipal Power, 16,701,000
3.11%, 6/2/06, (LOC
Wachovia Bank)
7,765,000 State Municipal Power, 7,765,000
3.11%, 6/5/06, (LOC --------------
Wachovia Bank)
59,606,000
--------------
ILLINOIS - 0.66%
5,295,000 State Health Facilities 5,295,000
Authority Revenue,
3.10%, 4/4/06, (MBIA
Insured)
200,000 State Health Facilities 200,000
Authority Revenue, --------------
3.30%, 4/4/06, (MBIA
Insured)
5,495,000
--------------
MINNESOTA - 3.62%
30,000,000 University of Minnesota, 30,000,000
3.10%, 6/6/06 --------------
TEXAS - 0.11%
950,000 Plano Health Facilities, 950,000
3.11%, 6/5/06, (MBIA --------------
Insured)
WYOMING - 1.33%
5,000,000 Sweetwater County 5,000,000
Pollution Control --------------
Revenue, 3.18%,
4/5/06, (LOC Barclays
Bank)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 6,000,000 Upper Trinity Regional $ 6,000,000
Water Distirct, --------------
3.20%, 10/13/06, (LOC
Bank of America)
11,000,000
--------------
TOTAL COMMERCIAL PAPER 107,051,000
(Cost $107,051,000) --------------
INVESTMENT COMPANIES - 0.12%
1,002,997 Federated Tax Exempt 1,002,997
Money Market Fund --------------
TOTAL INVESTMENT COMPANIES 1,002,997
(Cost $1,002,997) --------------
TOTAL INVESTMENTS 827,385,373
(Cost $827,385,373) (a) - 99.80% --------------
OTHER ASSETS IN EXCESS OF 1,694,704
LIABILITIES - 0.20% --------------
NET ASSETS - 100.00% $ 829,080,077
==============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on March 31, 2006. The maturity date
represents the actual maturity date.
Abbreviations used are defined below:
AMBAC - Ambac Assurance Corporation
FGIC - Financial Guaranty Insurance Co.
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance Inc.
GO - General Obligation
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
LOC - Letter of Credit
MBIA - MBIA Insurance Corporation
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
SEE NOTES TO FINANCIAL STATEMENTS.
39
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Prime Money Market Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
ASSET BACKED SECURITIES - 3.01%
ASSET BACKED AUTO RECEIVABLES - 3.01%
$ 4,500,000 Capital One Prime Auto $ 4,500,000
Receivables Trust, Series
2006-1, Class A1,
4.87%, 3/15/07
6,000,000 Daimler Chrysler Auto 6,000,000
Trust, Series 2006-A,
Class A1,
4.79%, 3/8/07
2,500,000 Honda Auto Receivables 2,500,000
Owner Trust, Series
2006-1, Class A1,
4.93%, 4/18/07
8,502,259 USAA Auto Owner 8,502,259
Trust, Series 2006-1,
Class A1,
4.76%, 3/15/07
6,500,000 World Omni Auto 6,500,000
Receivables Trust, Series --------------
2006-A, Class A1,
4.84%, 3/15/07
TOTAL ASSET BACKED SECURITIES 28,002,259
(Cost $28,002,259) --------------
COMMERCIAL PAPER - 40.43%
ASSET BACKED - 23.25%
17,000,000 Amsterdam Funding 16,991,443
Corp., 4.53%, 4/5/06,
(LOC ABN-AMRO Bank
NV) (c) (d)
20,000,000 Edison Asset 19,886,822
Securitization LLC,
4.63%, 5/15/06 (c) (d)
4,000,000 Edison Asset 3,975,717
Securitization LLC,
4.65%, 5/18/06 (c) (d)
11,725,000 Fairway Finance Corp., 11,710,507
4.45%, 4/11/06 (c) (d)
15,197,000 Fairway Finance Corp., 15,174,356
4.47%, 4/13/06 (c) (d)
20,000,000 Falcon Asset 19,957,500
Securitization Corp.,
4.50%, 4/18/06 (c) (d)
25,000,000 Kitty Hawk Funding 24,843,987
Corp., 4.78%,
5/18/06 (c) (d)
20,000,000 Liberty Street Funding 19,931,244
Corp., 4.76%,
4/27/06 (c) (d)
20,000,000 Ranger Funding Co. 19,957,594
LLC, 4.49%,
4/18/06 (c) (d)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$20,000,000 Sheffield Funding, $ 19,915,667
4.60%, 5/4/06, (LOC
Barclays Bank PLC, NY
Branch) (c) (d)
26,000,000 Three Pillars Funding, 25,979,981
4.62%, 4/7/06, (LOC
Suntrust Bank) (c) (d)
18,000,000 Windmill Funding 17,877,540
Corp., 4.71%, 5/23/06, --------------
(LOC ABN-AMRO Bank
NV) (c) (d)
216,202,358
--------------
BANKS - AUSTRALIA/NEW ZEALAND - 5.32%
30,000,000 ANZ Delaware, Inc., 29,826,000
4.64%, 5/16/06 (d)
20,000,000 Westpac Trust Securities 19,692,833
NZ Ltd., --------------
4.85%, 7/24/06 (c) (d)
49,518,833
--------------
BANKS - FOREIGN - 3.53%
13,000,000 Nationwide Building 12,854,934
Society, 4.84%,
6/23/06 (c) (d)
20,000,000 Societe Generale, 19,994,700
4.77%, 4/3/06 (d) --------------
32,849,634
--------------
CONGLOMERATES - 1.07%
10,000,000 BASF AG, 9,950,167
4.60%, 5/10/06 (c) (d) --------------
FINANCE - DIVERSIFIED FOREIGN - 3.20%
30,000,000 Nationwide Building 29,801,100
Society, 4.68%, --------------
5/22/06 (c) (d)
MANUFACTURING - 4.06%
18,000,000 Paccar Financial Corp., 17,924,595
4.57%, 5/4/06 (d)
20,000,000 Paccar Financial Corp., 19,897,778
4.60%, 5/11/06 (d) --------------
37,822,373
--------------
TOTAL COMMERCIAL PAPER 376,144,465
(Cost $376,144,465) --------------
CERTIFICATES OF DEPOSIT - 27.45%
BANKS - CANADA - 8.06%
30,000,000 Bank of Montreal, 30,000,000
4.56%, 4/10/06
25,000,000 Canadian Imperial Bank, 25,000,000
4.74%, 5/25/06
40
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$20,000,000 Toronto Dominion $ 20,000,209
Bank, 5.10%, 10/4/06 --------------
75,000,209
--------------
BANKS - DOMESTIC - 10.10%
20,000,000 Bank of America, 20,000,000
4.76%, 5/30/06
8,935,000 Bank One, NA, 8,935,938
4.81%, 5/5/06 (b)
25,000,000 First Tennessee Bank, 25,000,000
4.68%, 5/15/06
25,000,000 Mercantile Safe Deposit 25,000,001
& Trust, 4.77%,
5/31/06
15,000,000 National City Bank, 15,003,125
4.63%, 9/1/06, (b) --------------
93,939,064
--------------
BANKS - FOREIGN - 9.29%
5,000,000 Bank of Nova Scotia, 5,000,773
4.72%, 2/14/07 (b)
20,000,000 Barclays Bank PLC, 19,999,792
4.71%, 4/18/06, (b)
10,000,000 Barclays Bank PLC, 10,000,000
5.09%, 2/28/07
6,485,000 Calyon New York, 6,484,441
4.30%, 4/26/06
35,000,000 Credit Suisse First 34,999,999
Boston USA, Inc.,
4.49%, 4/10/06
10,000,000 Societe Generale, 10,000,128
4.51%, 4/13/06 --------------
86,485,133
--------------
TOTAL CERTIFICATES OF DEPOSIT 255,424,406
(Cost $255,424,406) --------------
CORPORATE BONDS - 26.67%
AGRICULTURE - 0.67%
6,250,000 Cargill, Inc., 6,255,790
6.25%, 5/1/06 (c)
BANKS - DOMESTIC - 4.08%
10,000,000 Suntrust Bank, 9,999,907
4.69%, 5/12/06 (b)
13,000,000 Wachovia Bank, NA, 13,000,000
4.79%, 12/4/06 (b)
15,000,000 Westpac Banking Corp., 15,000,000
4.72%, 2/16/07 (b) (c) --------------
37,999,907
--------------
BANKS - FOREIGN - 0.54%
2,000,000 Credit Suisse First 2,011,310
Boston USA, Inc.,
5.75%, 4/15/07
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 3,000,000 Deutsche Bank $ 3,039,349
Financial, Inc., 6.70%, --------------
12/13/06
5,050,659
--------------
FINANCE - AUTOMOTIVE - 3.62%
15,000,000 American Honda 15,000,000
Finance Corp.,
4.67%, 11/7/06 (b)
18,670,000 National Rural Utilities, 18,701,204
6.00%, 5/15/06 --------------
33,701,204
--------------
FINANCE - DIVERSIFIED DOMESTIC - 4.63%
10,000,000 American Express Credit 9,998,911
Corp.,
4.65%, 1/9/07 (b)
12,000,000 Citigroup, Inc., 12,002,373
4.90%, 5/19/06 (b)
2,080,000 General Electric Capital 2,080,347
Corp.,
4.91%, 5/12/06 (b)
9,000,000 Goldman Sachs Group, 9,002,109
4.67%, 8/1/06 (b)
10,000,000 Merrill Lynch & Co., 10,005,005
5.09%, 6/6/06, (b) --------------
43,088,745
--------------
FINANCE - DIVERSIFIED FOREIGN - 1.75%
2,625,000 Nationwide Building 2,572,094
Society, 2.63%,
1/30/07 (c)
13,650,000 Rio Tinto Finance, 13,682,175
5.75%, 7/3/06 --------------
16,254,269
--------------
INFORMATION TECHNOLOGY - 2.69%
25,000,000 IBM Corp., 25,000,000
4.68%, 4/5/07 (b) --------------
INSURANCE - 4.92%
16,000,000 John Hancock Global 16,010,116
Funding II,
4.95%, 7/17/06 (b)
9,700,000 Monument Global 9,698,778
Funding II, 4.90%,
9/14/06 (b) (c)
20,000,000 Principal Life, Inc. Fund, 20,018,848
4.88%, 11/13/06 (b) --------------
45,727,742
--------------
MANUFACTURING - 0.54%
5,000,000 Caterpillar, Inc., 5,007,943
9.00%, 4/15/06 --------------
41
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Prime Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
PHARMACEUTICALS - 3.23%
$29,980,000 Abbott Laboratories, $ 30,088,154
5.63%, 7/1/06 --------------
TOTAL CORPORATE BONDS 248,174,413
(Cost $248,174,413) --------------
MUNICIPAL BONDS - 2.77%
CALIFORNIA - 1.40%
10,000,000 Adelanto Public Utility 10,000,000
Authorization Revenue,
4.90%, 11/1/34,
(AMBAC Insured) (b)
3,090,000 Los Angeles County 3,075,574
Metropolitan --------------
Transportation
Authority, 2.79%,
7/1/06, (AMBAC
Insured)
13,075,574
--------------
MICHIGAN - 0.64%
5,955,000 Oakland County, 5,962,622
5.35%, 4/1/07, (LOC --------------
Oakland County)
NEW MEXICO - 0.43%
4,000,000 Albuquerque Industrial 4,000,000
Revenue, 4.87%, --------------
7/1/25, (LOC Wells
Fargo Bank) (b)
OREGON - 0.30%
2,755,000 Lake Oswego 2,755,000
Redevelopment Agency --------------
Tax Increment Revenue,
4.87%, 6/1/20, (LOC
Wells Fargo Bank) (b)
TOTAL MUNICIPAL BONDS 25,793,196
(Cost $25,793,196) --------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
INVESTMENT COMPANIES - 0.29%
2,708,044 Wells Fargo Prime $ 2,708,044
Investment Money
Market Fund
TOTAL INVESTMENT COMPANIES 2,708,044
(Cost $2,708,044) --------------
REPURCHASE AGREEMENTS - 0.86%
8,000,000 Merrill Lynch dated 8,000,000
4/3/06 at 4.75% with --------------
maturity value of
$ 8,003,167 (fully
collateralized by
Federal Home Loan
Mortgage Corp.,
3.83%, 1/18/08)
TOTAL REPURCHASE AGREEMENTS 8,000,000
(Cost $8,000,000) --------------
TOTAL INVESTMENTS 944,246,783
(Cost $944,246,783) (a) - 101.48% --------------
LIABILITIES IN EXCESS OF OTHER (13,749,068)
ASSETS - (1.48)% --------------
NET ASSETS - 100.00% $ 930,497,715
==============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on March 31, 2006. The maturity date
represents the actual maturity date.
(c) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. Securities
have been deemed to be liquid based on procedures approved by the Board of
Trustees.
(d) Rate represents the effective yield at purchase.
Abbreviations used are defined below:
AMBAC - Ambac Assurance Corporation
LOC - Letter of Credit
SEE NOTES TO FINANCIAL STATEMENTS.
42
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
MUNICIPAL BONDS - 85.64%
ALABAMA - 0.71%
$ 3,000,000 Mobile Industrial $ 3,000,000
Development Board --------------
Dock & Wharf Revenue,
3.18%, 6/1/32, (LOC
Wachovia Bank) (b)
ARIZONA - 1.33%
1,300,000 Apache County IDR, 1,300,000
3.16%, 12/15/18, (LOC
Bank of New York) (b)
1,400,000 Apache County IDR, 1,400,000
3.16%, 12/15/18, (LOC
Credit Suisse First
Boston) (b)
1,535,000 Maricopa County 1,535,000
Industrial Development
Authority MFHR (Gran
Victoria Housing LLC),
3.19%, 4/15/30, (FNMA
Insured) (b)
1,400,000 Phoenix IDA, 1,400,000
3.19%, 4/1/28, (LOC --------------
Wells Fargo Bank) (b)
5,635,000
--------------
COLORADO - 7.73%
1,000,000 Aurora Centretech 1,000,000
Metropolitan District,
Series A,
3.45%, 12/1/28, (LOC
BP Amoco) (b)
700,000 Boulder County 700,000
Revenue (YMCA
Boulder Valley),
3.19%, 2/1/31, (LOC
Wells Fargo Bank) (b)
1,000,000 Castlewood Ranch 1,000,000
Metropolitan District,
3.45%, 12/1/34, (LOC
U.S. Bank) (b)
540,000 Colorado Springs 540,000
Revenue (Pikes Peak
Mental Health),
3.19%, 3/15/23, (LOC
Wells Fargo Bank) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$1,455,000 Colorado Springs $ 1,455,000
Revenue (YMCA Pikes
Peak), 3.19%, 11/1/22,
(LOC Wells Fargo
Bank) (b)
4,300,000 Crystal Valley 4,300,000
Metropolitan District,
3.19%, 10/1/34, (LOC
Wells Fargo Bank) (b)
1,600,000 Denver City & County 1,600,000
Convention Center,
3.17%, 9/1/25, (FSA
Insured) (b)
3,000,000 Douglas County MFHR 3,000,000
(Autumn Chase),
3.18%, 12/1/29, (LOC
Freddie Mac) (b)
2,685,000 Interstate South 2,685,000
Metropolitan District,
Series A,
3.20%, 11/1/13, (LOC
BNP Paribas) (b)
4,810,000 Parker Automotive 4,809,999
Metropolitan District,
3.45%, 12/1/34, (LOC
U.S. Bank) (b)
3,700,000 State Educational & 3,700,000
Cultural Facilities
Authority (Denver
Seminary),
3.19%, 7/1/34, (LOC
Wells Fargo Bank) (b)
1,415,000 State Educational & 1,415,000
Cultural Facilities
Authority (Regis Jesuit
High School),
3.19%, 12/1/33, (LOC
Wells Fargo Bank) (b)
1,800,000 State Health Facilities 1,800,000
Authority Revenue
(Craig Hospital), 3.19%,
12/1/20, (LOC Wells
Fargo Bank) (b)
2,700,000 University of Colorado 2,700,000
Hospital Authority
Revenue, Series B,
3.18%, 11/15/35, (LOC
Wells Fargo Bank) (b)
43
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 2,000,000 Water Valley $ 2,000,000
Metropolitan District --------------
Number 002,
3.19%, 12/1/24, (LOC
Wells Fargo Bank) (b)
32,704,999
--------------
DELAWARE - 0.72%
3,000,000 State Health Facilities 3,045,155
Authority Revenue, --------------
6.25%, 10/1/06, (MBIA
Insured)
DISTRICT OF COLUMBIA - 0.49%
2,085,000 Galleria Metropolitan 2,085,000
District, 3.19%, --------------
12/1/29, (LOC Wells
Fargo Bank) (b)
FLORIDA - 2.33%
900,000 Collier County Health 900,000
Facilities Authority (The
Moorings, Inc.), 3.18%,
12/1/24, (LOC Wachovia
Bank) (b)
1,900,000 Dade County IDA 1,900,000
(Dolphins Stadium),
3.16%, 1/1/16, (LOC
Societe Generale) (b)
75,000 Dade County Water & 75,000
Sewer Systems
Revenue,
3.16%, 10/5/22, (FGIC
Insured) (b)
1,900,000 Indiana River County 1,900,000
Revenue (St. Edward's
School), 3.18%, 7/1/27,
(LOC Wachovia
Bank) (b)
3,775,000 St. John's County IDA, 3,870,424
IDR (Golf Hall of Fame),
5.88%, 9/1/23, (MBIA
Insured) Prerefunded
9/1/06 @ 101
1,200,000 Sunshine State 1,200,000
Government Finance --------------
Committee,
3.16%, 7/1/16,
(AMBAC Insured) (b)
9,845,424
--------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
GEORGIA - 6.39%
$ 5,900,000 Atlanta Water & Waste $ 5,900,000
Revenue,
3.15%, 11/1/41, (FSA
Insured) (b)
1,415,000 Clayton County MFHR 1,415,000
(BS Partners),
3.18%, 9/1/26, (FNMA
Insured) (b)
900,000 DeKalb Private Hospital 900,000
Authority (Children's
Health Care Project),
3.18%, 12/1/28, (LOC
Suntrust Bank) (b)
1,700,000 DeKalb Private Hospital 1,700,000
Authority (Egleston
Children's Hospital),
3.18%, 3/1/24, (LOC
Suntrust Bank) (b)
5,000,000 Fulco Hospital Authority 5,000,000
Revenue (Shepherd
Center, Inc. Project),
3.18%, 9/1/17, (LOC
Wachovia Bank) (b)
2,500,000 Fulton County 2,500,000
Development Authority
(St. George Village),
3.18%, 4/1/34, (LOC
Bank of America) (b)
6,000,000 Hall County Gainesville 6,000,000
Hospital Authority
Revenue (Northeast
Health),
3.16%, 5/15/29, (LOC
MBIA) (b)
3,600,000 Marietta MFHR, 3,600,000
3.18%, 5/15/07, (FNMA --------------
Collateralized) (b)
27,015,000
--------------
IDAHO - 2.37%
10,000,000 Idaho Tax Anticipation 10,032,662
Notes, 4.00%, 6/30/06, --------------
(LOC U.S. Bank)
ILLINOIS - 5.43%
3,000,000 Crestwood Tax, 3,000,000
Increment Revenue,
3.22%, 12/1/23, (LOC
Fifth Third Bank) (b)
44
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 1,800,000 Galesburg Revenue $ 1,800,000
(Knox College),
3.20%, 3/1/31, (LOC
LaSalle Bank) (b)
2,790,000 State Development 2,790,000
Finance Authority
Revenue (Westside
Health),
3.20%, 12/1/29, (LOC
LaSalle Bank) (b)
2,000,000 State Finance Authority 2,000,000
Revenue,
3.18%, 4/1/35, (LOC
Bank One) (b)
4,450,000 State Finance Authority 4,450,000
Revenue (Resurrection
Health),
3.19%, 5/15/35, (LOC
LaSalle Bank) (b)
2,400,000 State Health Facilities 2,400,000
Authority Revenue
(Memorial Health
Systems),
3.23%, 10/1/22, (LOC
JP Morgan Chase
Bank) (b)
6,525,000 State Health Facilities 6,525,000
Authority Revenue --------------
(Swediah Covenant
Hospital),
3.20%, 8/15/33, (LOC
LaSalle Bank) (b)
22,965,000
--------------
INDIANA - 1.76%
1,700,000 State Health Facilities 1,700,000
Finance Authority
Revenue (Anthony
Wayne Rehabilitation
Center), 3.19%, 2/1/31,
(LOC Wells Fargo
Bank) (b)
2,230,000 State Health Facilities 2,230,000
Finance Authority
Revenue (Deaconess
Hospital),
3.18%, 1/1/22, (LOC
Fifth Third Bank) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 800,000 State Health Facilities $ 800,000
Finance Authority
Revenue (Golden Years
Homestead),
3.19%, 6/1/12, (LOC
Wells Fargo Bank) (b)
2,700,000 State Hospital 2,700,000
Equipment Financing --------------
Authority Revenue,
3.19%, 12/1/15, (MBIA
Insured) (b)
7,430,000
--------------
IOWA - 6.82%
2,130,000 State Finance Authority 2,130,000
Revenue (Health
Systmes), Series A-1,
3.16%, 2/15/35, (FGIC
Insured) (b)
1,600,000 State Finance Authority 1,600,000
Revenue (Mississippi
Valley Regional Blood
Center), 3.19%, 2/1/23,
(LOC Wells Fargo
Bank) (b)
705,000 State Finance Authority 705,000
Revenue (Putnam
Museum of History),
3.19%, 5/1/12, (LOC
Wells Fargo Bank) (b)
1,000,000 State Higher Education 1,000,000
Authority Revenue
(Loras College), 3.18%,
11/1/30, (LOC LaSalle
Bank) (b)
1,890,000 State Higher Education 1,890,000
Authority Revenue
(Palmer Chiropractic),
3.20%, 4/1/27, (LOC
LaSalle Bank) (b)
1,105,000 State Higher Education 1,105,000
Loan Authority Revenue
(Mount Mercy College
Project), 3.18%, 7/1/25,
(LOC Bank of
America) (b)
1,850,000 State Higher Education 1,850,000
Loan Authority Revenue
(Private Colleges),
3.18%, 11/1/32, (LOC
LaSalle Bank) (b)
45
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$11,000,000 State School Cash $ 11,035,379
Anticipation Program,
4.00%, 6/28/06, (FSA
Insured)
3,000,000 State School Cash 3,030,797
Anticipation Program,
4.50%, 1/26/07, (FSA
Insured)
2,350,000 Webster County 2,350,000
Educational Facilities
Revenue,
3.19%, 7/1/20, (LOC
Wells Fargo Bank) (b)
2,150,000 Woodbury County 2,150,000
Educational Facilities --------------
Revenue,
3.24%, 11/1/16, (LOC
U.S. Bank) (b)
28,846,176
--------------
KANSAS - 3.11%
7,950,000 Olathe Health Facilities 7,950,000
Revenue (Olathe
Medical Center),
3.18%, 9/1/32,
(AMBAC Insured) (b)
5,220,000 State Development 5,220,000
Finance Authority --------------
Revenue (Village
Shalom Obligated
Group),
3.18%, 11/15/28, (LOC
LaSalle Bank) (b)
13,170,000
--------------
KENTUCKY - 0.50%
2,135,000 Breckinridge County 2,135,000
Lease Program Revenue, --------------
3.19%, 12/1/29, (LOC
U.S. Bank) (b)
LOUISIANA - 1.45%
2,600,000 State GO, 2,631,802
5.50%, 11/15/06, (FGIC
Insured)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 3,500,000 State Offshore Terminal $ 3,500,000
Authority Deepwater --------------
Port Revenue (Loop LLC
Project),
3.18%, 10/1/19, (LOC
JP Morgan Chase
Bank) (b)
6,131,802
--------------
MAINE - 0.11%
450,000 State Turnpike Authority 452,764
Revenue, --------------
6.00%, 7/1/06, (FGIC
Insured)
MARYLAND - 2.46%
8,900,000 Montgomery County 8,900,000
Housing Opportunities
MFHR (Oakwood
Apartments),
3.19%, 11/1/07, (LOC
Freddie Mac) (b)
1,515,000 State Health & Higher 1,515,000
Education Facilities --------------
Revenue (Pooled Loan
Program),
3.16%, 1/1/29, (LOC
Bank of America) (b)
10,415,000
--------------
MASSACHUSETTS - 0.24%
1,000,000 State Health & 1,006,911
Education Facilities --------------
Authority Revenue
(Daughters Charity),
6.10%, 7/1/14,
Prerefunded 7/1/06 @
100
MICHIGAN - 2.79%
3,000,000 Detroit GO, 3,000,000
5.00%, 4/1/06, (MBIA
Insured)
1,800,000 Detroit Sewage Disposal 1,800,000
Revenue,
3.15%, 7/1/33, (FSA
Insured) (b)
46
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 2,300,000 Kent Hospital Finance $ 2,300,000
Authority Revenue
(Spectrum Health),
3.16%, 1/15/26, (MBIA
Insured) (b)
1,500,000 Kent Hospital Finance 1,500,000
Authority Revenue
(Spectrum Health),
3.16%, 1/15/29, (FGIC
Insured) (b)
2,615,000 Northern Michigan 2,615,000
University Revenues
Bonds, 3.18%, 6/1/31,
(FGIC Insured) (b)
585,000 State Strategic Fund 585,000
(Clark Retirement), --------------
3.17%, 6/1/31, (LOC
Fifth Third Bank) (b)
11,800,000
--------------
MINNESOTA - 4.58%
689,000 Arden Hills Housing & 689,000
Healthcare Facilities
Revenue,
3.23%, 9/1/29, (LOC
U.S. Bank) (b)
1,315,000 Midwest Consortium of 1,315,000
Minneapolis Municipal
Utilities Revenue,
3.19%, 1/1/25, (LOC
U.S. Bank) (b)
6,000,000 Midwest Consortium of 6,000,000
Minneapolis Municipal
Utilities Revenue,
3.19%, 10/1/35, (LOC
U.S. Bank) (b)
760,000 Minneapolis Revenue 760,000
(Catholic Charities
Projects),
3.19%, 11/1/16, (LOC
Wells Fargo Bank) (b)
1,200,000 Minnetonka MFHR 1,200,000
(Minnetonka Hills
Apartments),
3.19%, 11/15/31,
(FNMA Insured) (b)
4,000,000 Oak Park Heights MFHR 4,000,000
(Boutwells Landing),
3.19%, 11/1/35, (LOC
Freddie Mac) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 2,400,000 State Higher Education $ 2,400,000
Facilities Authority
Revenue (St. Olaf
College),
3.18%, 10/1/30, (LOC
Harris Trust & Savings
Bank) (b)
3,000,000 State School Districts 3,013,655
Tax & Aid Anticipation --------------
Borrowing Program
Certificates,
4.00%, 9/12/06,
(School District Credit
Program Insured)
19,377,655
--------------
MISSISSIPPI - 1.49%
6,300,000 Jackson County PCR, 6,300,000
3.15%, 6/1/23, (Obligor --------------
Chevron Texaco
Corp.) (b)
MISSOURI - 1.88%
1,900,000 Independence Industrial 1,900,000
Development Authority
MFHF (Mansions
Project), 3.19%, 8/1/35,
(LOC Freddie Mac) (b)
695,000 State Development 695,000
Finance Board Lease
Revenue (Associated
Municipal Utilities
Lease), 3.23%, 6/1/33,
(LOC U.S. Bank) (b)
2,790,000 State Health & 2,790,000
Educational Facilities
Authority,
3.18%, 11/1/32, (LOC
Bank of America) (b)
500,000 State Health & 500,000
Educational Facilities
Authority Revenue
(Bethesda Health
Group), 3.23%, 8/1/31,
(LOC U.S. Bank) (b)
2,000,000 University of Missouri 2,065,090
Health Facilities --------------
Revenue,
5.50%, 11/1/16,
(AMBAC Insured)
Prerefunded 11/1/06
@ 102
7,950,090
--------------
47
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
MONTANA - 0.45%
$ 1,900,000 Billings IDR, $ 1,900,000
3.18%, 12/1/14, (LOC
Toronto Dominion
Bank) (b)
NEBRASKA - 4.09%
3,600,000 Lancaster County 3,600,000
Hospital Authority
Health Facilities
Revenue (Immanuel),
3.21%, 7/1/30, (LOC
LaSalle Bank) (b)
8,695,000 Lancaster County 8,695,000
Hospital Authority
Revenue (Bryan Leigh
Medical Center Project),
3.18%, 6/1/18,
(AMBAC Insured) (b)
2,900,000 State Educational 2,900,000
Finance Authority
Revenue (Creighton
University Project),
3.18%, 3/1/33,
(AMBAC Insured) (b)
2,100,000 State Educational 2,100,000
Finance Authority --------------
Revenue (Creighton
University Project),
3.18%, 7/1/35, (FGIC
Insured) (b)
17,295,000
--------------
NEVADA - 1.18%
5,000,000 Director State 5,000,000
Department Business & --------------
Industry (Nevada Cancer
Institute),
3.18%, 12/1/33, (LOC
Bank of America) (b)
NEW JERSEY - 1.19%
5,000,000 State Tax & Revenue 5,013,885
Anticipation Notes, --------------
4.00%, 6/23/06, (LOC
JP Morgan Chase Bank)
NORTH CAROLINA - 2.31%
2,125,000 Charlotte Airport 2,125,000
Revenue, 3.16%,
7/1/34, (MBIA
Insured) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 5,100,000 City of Charlotte, $ 5,093,605
2.84%, 6/7/06, (LOC
Suntrust Bank)
2,550,000 State Medical Care 2,550,000
Common Revenue --------------
(FlexCap-Lutheran
Project), 3.18%, 1/1/39,
(LOC Bank of
America) (b)
9,768,605
--------------
NORTH DAKOTA - 0.20%
830,000 Ward County Health 830,000
Care Facilities Revenue --------------
(Trinity Group), 3.23%,
7/1/29, (LOC U.S.
Bank) (b)
OHIO - 2.02%
5,020,000 Franklin County 5,020,000
Hospital Revenue
(OhioHealth),
3.18%, 12/1/28, (LOC
National City Bank) (b)
3,000,000 University of Toledo 3,000,000
General Receipts Bonds,
3.18%, 6/1/32, (FGIC
Insured) (b)
545,000 Warren County Health 545,000
Care Facilities Revenue --------------
(Otterbein Homes
Project), 3.22%, 7/1/23,
(LOC Fifth Third
Bank) (b)
8,565,000
--------------
OKLAHOMA - 0.92%
1,400,000 State Industrial 1,400,000
Authority Revenue
(Integris Baptist),
3.18%, 8/15/29, (MBIA
Insured) (b)
1,500,000 Tulsa Industrial 1,500,000
Authority MFHR (Park
Chase Apartments),
3.19%, 12/15/29,
(FNMA Insured) (b)
48
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 1,000,000 Tulsa Industrial $ 1,000,000
Authority Revenue --------------
(YMCA of Greater Tulsa
Project), 3.19%, 5/1/19,
(LOC Wells Fargo
Bank) (b)
3,900,000
--------------
PENNSYLVANIA - 1.89%
4,000,000 Dauphin County 4,000,000
General Authority
Health Systems
Revenue, 3.16%,
8/15/27, (FSA
Insured) (b)
4,000,000 Montgomery County 4,000,000
IDA (Gloria DEI Project), --------------
3.19%, 1/1/23, (LOC
Citizens Bank) (b)
8,000,000
--------------
TENNESSEE - 3.06%
1,425,000 Jackson Energy 1,425,000
Authority Electrical
Systems Revenue,
3.18%, 11/1/26,
(AMBAC Insured) (b)
8,500,000 Montgomery County 8,500,000
Public Building
Authority Revenue,
3.17%, 2/1/36, (LOC
Bank of America) (b)
3,000,000 Tennergy Corp. Gas 3,010,706
Revenue, --------------
5.00%, 6/1/06, (MBIA
Insured)
12,935,706
--------------
TEXAS - 4.35%
3,750,000 Aldine Independent 3,750,000
School District,
2.75%, 6/15/28, (PSF
Insured) (b)
2,600,000 Austin County Industrial 2,600,000
Development Corp.,
3.18%, 12/1/14, (LOC
JP Morgan Chase
Bank) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 2,000,000 Splendora Higher $ 2,000,000
Education Facilities
Revenue,
3.19%, 12/1/26, (LOC
Wells Fargo Bank) (b)
10,000,000 State Tax & Revenue 10,060,633
Anticipation Notes, --------------
4.50%, 8/31/06
18,410,633
--------------
UTAH - 2.04%
2,800,000 Duchesne School 2,800,000
District Municipal
Building Authority Lease
Revenue,
3.24%, 6/1/21, (LOC
U.S. Bank) (b)
3,000,000 Ogden City 3,000,000
Redevelopment Agency
Tax, Increment Revenue,
3.19%, 4/1/25, (LOC
Wells Fargo Bank) (b)
2,020,000 Salt Lake City Revenue 2,020,000
(Valley Mental Health
Project), 3.19%,
12/1/21, (LOC Wells
Fargo Bank) (b)
805,000 Sanpete County School 805,000
Facilities Revenue --------------
(Wasatch Academy),
3.24%, 8/1/28, (LOC
U.S. Bank) (b)
8,625,000
--------------
VIRGINIA - 0.53%
885,000 Alexandria IDA (Pooled 885,000
Loan Project),
3.18%, 7/1/26, (LOC
Bank of America) (b)
1,350,000 Roanoke County 1,350,000
Industrial Development --------------
Authority Healthcare
Facilities Revenue
(Friendship Manor, Inc.),
3.18%, 10/1/15, (LOC
Wachovia Bank) (b)
2,235,000
--------------
49
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
WASHINGTON - 4.32%
$ 2,200,000 Snohomish County $ 2,200,000
Public Utility,
3.17%, 12/1/19, (FSA
Insured) (b)
6,485,000 State Health Care 6,485,000
Facilities Revenue
(Empire Health Services),
3.19%, 11/1/23, (LOC
U.S. Bank) (b)
1,055,000 State Housing & 1,055,000
Finance Commission
Nonprofit Revenue
(Annie Wright School),
3.10%, 12/1/23, (LOC
Bank of America) (b)
5,545,000 State Housing & 5,545,000
Finance Commission
Nonprofit Revenue
(Overlake School
Project), 3.19%,
10/1/29, (LOC Wells
Fargo Bank) (b)
1,500,000 State Housing & 1,500,000
Finance Commission
Nonprofit Revenue
(Wesley Homes Project),
3.10%, 1/1/36, (LOC
Bank of America) (b)
885,000 State Public Power 885,000
Supply, 3.16%, 7/1/12,
(MBIA Insured) (b)
600,000 State Public Power 600,000
Supply, 3.17%, 7/1/17, --------------
(LOC Bank of
America) (b)
18,270,000
--------------
WISCONSIN - 2.40%
1,125,000 State Health & 1,125,000
Educational Facilities
Authority Revenue
(Camillus Health
Center), 3.20%, 2/1/35,
(LOC U.S. Bank) (b)
4,085,000 State Health & 4,085,000
Educational Facilities
Authority Revenue
(Gundersen Lutheran),
3.18%, 12/1/15, (FSA
Insured) (b)
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
$ 1,400,000 State Health & $ 1,400,000
Educational Facilities
Authority Revenue
(Gundersen Lutheran),
3.18%, 12/1/29, (LOC
Dexia Group) (b)
3,500,000 State School Districts 3,521,136
Cash Flow Management --------------
Program Certificates of
Participation, Series A-1,
4.25%, 9/20/06, (LOC
U.S. Bank)
10,131,136
--------------
TOTAL MUNICIPAL BONDS 362,223,603
(Cost $362,223,603) --------------
COMMERCIAL PAPER - 14.48%
FLORIDA - 7.26%
4,000,000 Intermountain Power, 4,000,000
3.18%, 6/7/06, (LOC JP
Morgan Chase)
4,500,000 Jacksonville Health 4,500,000
Facilities Authority
Revenue (Baptist
Medical Center Project),
3.20%, 10/13/06, (LOC
Bank of America)
5,250,000 Pinellas County 5,250,000
Education Finance
Authority,
3.25%, 4/10/06, (LOC
Wachovia Bank)
3,300,000 Pinellas County 3,300,000
Education Finance
Authority,
3.11%, 5/22/06, (LOC
Wachovia Bank)
650,000 Pinellas County 650,000
Education Finance
Authority,
3.25%, 4/10/06, (LOC
Wachovia Bank)
10,000,000 State Municipal Power, 10,000,000
3.10%, 4/4/06, (LOC
Wachovia Bank)
3,000,000 State Municipal Power, 3,000,000
3.11%, 6/5/06, (LOC --------------
Wachovia Bank)
30,700,000
--------------
50
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Institutional Tax-Free Money Market Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL SECURITY
AMOUNT DESCRIPTION VALUE
- -------------------------------------------------------------------------------
ILLINOIS - 0.58%
$ 2,435,000 State Health, $ 2,435,000
3.10%, 6/6/06, (FSA
Insured)
MINNESOTA - 1.89%
8,000,000 University of Minnesota, 8,000,000
3.20%, 4/10/06 --------------
PENNSYLVANIA - 0.02%
100,000 Montgomery County, 99,983
3.37%, 5/17/06, (LOC --------------
BNP Paribas)
TEXAS - 1.35%
5,700,000 Plano Health Facilities, 5,700,000
3.11%, 6/5/06, (MBIA --------------
Insured)
WISCONSIN - 1.13%
4,800,000 State Health & 4,800,000
Educational Facilities --------------
Authority Revenue,
3.30%, 5/23/06, (LOC
JP Morgan Chase Bank)
WYOMING - 2.25%
9,525,000 Sweetwater County 9,525,000
Pollution Control --------------
Revenue,
3.20%, 6/6/06, (LOC
Barclays Bank)
TOTAL COMMERCIAL PAPER 61,259,983
(Cost $61,259,983) --------------
INVESTMENT COMPANIES - 0.17%
709,081 Federated Tax Exempt 709,081
Money Market Fund --------------
TOTAL INVESTMENT COMPANIES 709,081
(Cost $709,081) --------------
TOTAL INVESTMENTS 424,192,667
(Cost $424,192,667) (a) - 100.29% --------------
LIABILITIES IN EXCESS OF (1,215,937)
OTHER ASSETS - 0.29% --------------
NET ASSETS - 100.00% $ 422,976,730
==============
(a) Tax cost of securities is equal to book cost of securities.
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on March 31, 2006. The maturity date
represents the actual maturity date.
Abbreviations used are defined below:
AMBAC - Ambac Assurance Corporation
FGIC - Financial Guaranty Insurance Co.
FNMA - Federal National Mortgage Association
FSA - Financial Security Assurance Inc.
GO - General Obligation
IDA - Industrial Development Authority
IDR - Industrial Development Revenue
LOC - Letter of Credit
LLC - Limited Liability
MBIA - MBIA Insurance Corporation
MFHR - Multi-Family Housing Revenue
PCR - Pollution Control Revenue
PSF - Permanent School Fund
SEE NOTES TO FINANCIAL STATEMENTS.
51
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
T. GERON BELL (64)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President of Twins Sports, Inc.
(parent company of the Minnesota Twins and Victory Sports) (2002-present);
prior thereto President of the Minnesota Twins Baseball Club Incorporated
(1987-present); Director, Great Hall Investment Funds, Inc. (1993-2004);
Trustee, J&B Funds (2003-2004); Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
LUCY HANCOCK BODE (54)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Healthcare consultant; Director,
RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
LESLIE H. GARNER JR. (55)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President, Cornell College;
Director, RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
RONALD JAMES (55)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive
Officer, Center for Ethical Business Cultures (2000-present); Director, Great
Hall Investment Funds, Inc. (1993-2004); Trustee, J&B Funds (2003-2004);
Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
JOHN A. MACDONALD (57)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Investment Officer, Hall
Family Foundation; Trustee, J&B Funds (2001-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
H. DAVID RYBOLT (63)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Consultant, HDR Associates
(management consulting); Director, Babson Funds (1992-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
52
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
JAMES R. SEWARD (53)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Private investor (2000-present);
Trustee, J&B Funds (2001-2004); Financial Consultant, Seward & Company, LLC
(1998-2000); CFA.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
WILLIAM B. TAYLOR (60)
POSITION HELD WITH FUND: Trustee; Since September, 2005
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Consultant (2003-present); Partner
(until 2003) Ernst & Young LLP.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
Interested Trustees(1)
- --------------------------------------------------------------------------------
ERIK R. PREUS (40)
POSITION HELD WITH FUND: Trustee; Since January 2006
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer, Voyageur
Asset Management (2005 to present); Director, Investment Consulting Services,
RBC Dain Rauscher (2004-2005); Director, Voyageur Advisory Services, Voyageur
Asset Management (2003-2004); Senior Vice President, Divisional Sales Manager,
PIMCO Allianz Investments and its predecessor firm, Nicholas Applegate
(2001-2003).
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
53
================================================================================
MANAGEMENT
================================================================================
- --------------------------------------------------------------------------------
Executive Officers(1)
- --------------------------------------------------------------------------------
JENNIFER D. LAMMERS (45)
POSITION HELD WITH FUND: President and Chief Executive Officer; Since January,
2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, Voyageur Asset
Management (2000-present); Mutual Fund Services Director, Voyageur Asset
Management (2003-present); Chief Financial Officer, Great Hall Investment
Funds, Inc. (2001-2003); Compliance Officer, Great Hall Investment Funds, Inc.
(2000-2001); Director of Finance, Voyageur Asset Management (2000-2003); Vice
President and Manager, Financial Reporting, RBC Dain Rauscher (1998-2000);
President and Chief Executive Officer (2003-2004)(2).
- --------------------------------------------------------------------------------
DAVID P. LUX (51)
POSITION HELD WITH FUND: Chief Financial Officer; Since September, 2005
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Controller, Tamarack Funds,
November 2004-September 2005, Vice President and Mutual Funds Finance Manager,
Voyageur Asset Management (2004-present); Senior Financial Analyst, Voyageur
Asset Management (2003-2004); Senior Financial Analyst, RBC Dain Rauscher Fixed
Income Group (1995-2003).
- --------------------------------------------------------------------------------
MARTIN A. CRAMER (56)
POSITION HELD WITH FUND: Vice President, Assistant Secretary, Chief Compliance
Officer, and AML Compliance Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Mutual Fund
Administration Manager, Voyageur Asset Management (2003-present); Legal and
Regulatory Affairs Vice President, Compliance Officer and Secretary, J&B
(mutual fund management and distribution company) (1993-2003); Vice President,
Assistant Secretary, Compliance Officer and AML Compliance Officer
(2003-2004)(2), and formerly, Vice President, Compliance Officer and Secretary,
Buffalo Fund Complex (1994-2003)(3) and Secretary, Gold Bank Funds (2001-2003).
- --------------------------------------------------------------------------------
MONICA V. BALLARD (35)
POSITION HELD WITH FUND: Secretary and Chief Legal Officer; since September,
2005
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Senior Associate General Counsel,
RBC Dain Rauscher (2004-present); Counsel, Allianz Life (2002-2004); Associate
Counsel, American Express Financial Advisors (1996-2002).
- --------------------------------------------------------------------------------
JOHN M. HUBER (37)
POSITION HELD WITH FUND: Chief Investment Officer (2005)
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Investment Officer Fixed
Income, Voyageur Asset Management (2004-Present); Galliard Capital Management,
Principal and Senior Portfolio Manager (1995-2004).
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson-Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
(3) The Buffalo Fund Complex consists of Buffalo Balanced Fund, Inc., Buffalo
Large Cap Fund, Inc., Buffalo High Yield Fund, Inc., Buffalo Small Cap
Fund, Inc., Buffalo USA Global Fund, Inc., and the Buffalo Funds, which is
a series fund consisting of Buffalo Science & Technology Fund and Buffalo
Mid Cap Fund. Gold Bank Funds is a series fund consisting of Gold Bank
Equity and Gold Bank Money Market Fund.
54
================================================================================
SUPPLEMENTAL INFORMATION (Unaudited)
================================================================================
- --------------------------------------------------------------------------------
INFORMATION FOR TAMARACK FUNDS
SHAREHOLDERS REGARDING THE RENEWAL
OF INVESTMENT ADVISORY AGREEMENTS
The Tamarack Board of Trustees has renewed the Investment Advisory Agreement
with Voyageur Asset Management Inc. for each of the Funds. After evaluating the
services provided by the Advisor and reviewing the performance and relevant
expenses of each Fund, the Trustees concluded that it was in the best interests
of the Funds and their shareholders to retain Voyageur for an additional year.
As part of their review of the Agreements, the Trustees received and discussed
certain information, including information regarding the advisory services
performed, qualifi cations of staffing, and Fund performance and expenses. The
Trustees considered information provided in advance of their in-person meeting,
as well as supplemental information provided at the meeting. The Trustees met
with representatives from the Advisor's senior management team, as well as
senior investment professionals, to discuss this information and Voyageur's
intentions with regard to the ongoing management of the Funds. The Trustees
reviewed the quality of the services provided to the Funds by Voyageur,
including information prepared by a third-party consultant as to each Fund's
performance relative to an appropriate benchmark as well as compared to the
Fund's appropriate peer group. The Trustees also reviewed the investment
management fees payable to Voyageur. In this connection, the Trustees reviewed
comparative information prepared by a third-party consultant on investment
management fees paid and expenses incurred by similarly situated funds. The
Trustees also received reports from Voyageur regarding other investment
companies advised by them, including the advisory fees paid. The Trustees took
into account profitability data for Voyageur included in the 15C review
materials. The Trustees received information from Voyageur regarding other
benefits derived from their relationships with the funds. In connection with
their deliberations, the independent Trustees met separately with their
independent legal counsel to review the relevant material and consider their
responsibilities under relevant laws and regulations. In addition, the Trustees
noted the expected composition of each portfolio management team. Finally, the
Trustees took into account various advantages and benefits expected to be
associated with the overall consolidation of the Funds under the Tamarack Funds
complex, including operational, compliance and distribution services.
When evaluating the investment performance of the Funds, the Trustees generally
emphasize three to five year returns, as opposed to shorter time periods. Both
three year performance, and five year performance of all Funds was at or above
the median for their respective peer groups. In reviewing expenses, the Trustees
noted that total expenses of each Fund were at or below the median for their
respective peer groups. The Trustees also reviewed and approved Fund
Management's proposal to continue for an additional year the existing fee
waivers for the Prime and Tax-Free Money Market Funds, in order to maintain
total expenses at their current levels. In considering the quality of the
services performed for each Fund by Voyageur, the Trustees discussed the strong
research capabilities and fundamental analysis performed by the firm and also
considered the extensive portfolio management experience of Voyageur, the
compliance structure and systems established by Voyageur and the financial
viability of Voyageur. The Trustees also considered steps that already had been
taken by Voyageur to expand upon existing research capabilities and compliance
processes and steps that were expected to be taken to maintain and/or enhance
such capabilities and processes.
Based upon their review, the Trustees determined that the advisory fees proposed
to be payable to Voyageur were reasonable and fair, the nature and quality of
services provided were satisfactory, and concluded that it is in the interest of
the Funds and their shareholders for the Trustees to approve the Agreement for
the Funds. In arriving at their decision to approve the renewal of each of the
agreements, the Trustees did not assign relative weights to the factors
discussed above or deem any one or group of them to be controlling in and of
themselves.
55
================================================================================
SUPPLEMENTAL INFORMATION (Unaudited)
================================================================================
- --------------------------------------------------------------------------------
SHAREHOLDER EXPENSE EXAMPLES
As a shareholder of the Tamarack Funds, you incur ongoing costs, including
management fees and other Fund expenses. This example is intended to help you
understand your ongoing costs (in dollars) of investing in the Tamarack Funds
and to compare these costs with the ongoing costs of investing in other mutual
funds.
The Example is based on an investment of $1,000 invested at the beginning of
the period and held for the entire period from October 1, 2005 through March
31, 2006.
- --------------------------------------------------------------------------------
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information below, 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 table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you
paid on your account during this period.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
10/1/05 3/31/06 10/1/05 -- 3/31/06 10/1/05 -- 3/31/06
------------- ------------- ------------------ ------------------
Prime Money Market Fund $ 1,000.00 $ 1,017.50 $ 4.02 0.80%
U.S. Government Money
Market Fund 1,000.00 1,017.00 3.92 0.78%
Tax-Free Money Market
Fund 1,000.00 1,011.20 3.51 0.70%
Institutional Prime Money
Market Fund 1,000.00 1,020.10 1.41 0.28%
Institutional Tax-Free Money
Market Fund 1,000.00 1,013.30 1.46 0.29%
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Tamarack Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of other funds.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
10/1/05 3/31/06 10/1/05 -- 3/31/06 10/1/05 -- 3/31/06
------------- ------------- ------------------ -----------------
Prime Money Market Fund $ 1,000.00 $ 1,020.94 $ 4.03 0.80%
U.S. Government Money
Market Fund 1,000.00 1,021.04 3.93 0.78%
Tax-Free Money Market
Fund 1,000.00 1,021.44 3.53 0.70%
Institutional Prime Money
Market Fund 1,000.00 1,023.54 1.41 0.28%
Institutional Tax-Free Money
Market Fund 1,000.00 1,023.49 1.46 0.29%
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
56
[PHOTO]
Tamarack Funds
P.O. Box 219757
Kansas City, MO 64121-9757
800-422-2766
www.TamarackFunds.com
TF SAR 3/06 TAMARACK DISTRIBUTORS, INC.
536522 (3/06)
TAMARACK FUNDS
Semi-Annual Report March 31, 2006
[PHOTO]
GOVERNMENT INCOME FUND
QUALITY FIXED INCOME FUND
TAX-FREE INCOME FUND
[LOGO] TAMARACK FUNDS
================================================================================
================================================================================
Tamarack Funds
- --------------------------------------------------------------------------------
ABOUT YOUR SEMI-ANNUAL REPORT
This semi-annual report includes detailed information regarding your Fund's
performance. This report is provided to help answer your questions as a
shareholder. Among these questions may be: How has my Fund performed against
its benchmark both in the last year and over the last ten years (or since
inception if less than ten years)? What are the annual expenses of my Fund?
What are the significant accounting policies and procedures followed by my
Fund?
The Tamarack Funds compare their performance against widely used market
indices, depending on the market sector or investment style of the particular
fund. Fixed income funds are benchmarked against various Lehman Brothers Bond
Indices, which show only the performance of the underlying fixed income
securities, rather than of a comparable fund that would be available to an
average investor.
We hope the financial information presented, as well as the discussion and
analysis from your portfolio manager(s), will help you evaluate your investment
in the Tamarack Funds. We also encourage you to read your Fund's prospectus for
further detail as to your Fund's investment policies and risk profile. Tamarack
Funds prospectuses and performance information subsequent to the date of this
report are available on our website at www.tamarackfunds.com.
A description of the policies and procedures that your Fund uses to determine
how to vote proxies relating to portfolio securities is available (i) without
charge, upon request, by calling 1-800-422-2766; (ii) on the Fund's website at
www.tamarackfunds.com; and (iii) on the Securities and Exchange Commission's
(the "Commission") website at http://www.sec.gov.
Information regarding how your Fund voted proxies relating to portfolio
securities during the most recent 12 month period ended June 30 is available
(i) on the Fund's website at www.tamarackfunds.com; and (ii) on the
Commission's website at http://www.sec.gov.
A schedule of each Fund's portfolio holdings will be filed with the Commission
for the first and third quarters of each fiscal year on Form N-Q. This
information is available on the Commission's website at http://www.sec.gov and
may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information on the operation of the Public Reference Room is
available by calling 1-800-SEC-0330.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Letter from the CIO of Fixed Income ....................................... 1
Fixed Income Portfolio Managers ........................................... 3
Performance Summary ....................................................... 5
Government Income Fund
- - Management Discussion and Analysis ...................................... 7
Quality Fixed Income Fund
- - Management Discussion and Analysis ...................................... 9
Tax-Free Income Fund
- - Management Discussion and Analysis ...................................... 11
Financial Statements
- - Statements of Assets and Liabilities .................................... 13
- - Statements of Operations ................................................ 15
- - Statements of Changes in Net Assets ..................................... 16
Financial Highlights ...................................................... 19
Notes To Financial Statements ............................................. 22
Schedules of Portfolio Investments ........................................ 32
Notes to Schedules of Portfolio Investments ............................... 42
Management ................................................................ 43
Share Class Information ................................................... 46
Supplemental Information .................................................. 47
================================================================================
LETTER FROM THE CIO OF FIXED INCOME
================================================================================
- --------------------------------------------------------------------------------
It has been nearly two years and fifteen successive 25bps rate increases since
the dovish Federal Reserve morphed into a hawk; and as the capital markets have
become keenly aware, this hawk has shown a determined willingness to continue
feasting on any inflation risks it discovers within its economic lens. Looking
back throughout history, the 1978 through 1979 time period was the last time the
market has evidenced so many consistent rate changes taking place. However, the
Fed's current economic landscape is certainly different than the inflationary
hunting grounds of the late 1970's. Or is it? Let's review what has transpired
in the fixed income markets through the first half of the Fund family's fiscal
year.
The yield curve finally surrendered during the last days of 2005 and inversion
became a reality. An inversion of the curve occurs when short-term rates are
higher than long-term interest rates. Curve inversions are rare, having happened
only seven times since the 1960's - most dramatically in the late 1970's. When
the yield curve does invert, it has proven to be a statistically accurate
predictor of negative economic growth four to six quarters after the inversion
occurs. In fact, negatively-sloped yield curves have predicted six recessions
since the 1960s with only one "false" signal.
Since the inversion, fixed income market participants have largely ignored
historical precedents and stepped even further out the risk spectrum, driving
yield spreads tighter across most fixed income sectors.
o Agency and corporate debentures significantly outperformed similar
maturity Treasuries over both the past two quarters driven primarily
by continued strong demand for lower quality investment grade and high
yield issues along with a modest amount of net new issuance.
o The structured product (mortgage-backed and asset-backed securities)
market has also bested risk-free (Treasuries) alternatives during the
past several months, although I view the structured product price
premium as too high given the relative risks. Traditional fixed rate
mortgage-backed securities have outperformed Treasuries by 44bps in
the past three months alone.
o In general, price depreciation due to the trend toward higher interest
rates has offset the income earned over the past six months within
most fixed income indices. These flat total returns within the fixed
income markets have signif icantly lagged our equity counterparts.
However, it is worth noting that the absolute level of fixed income
yields has become increasingly attractive in the 5-6% range. A
balanced approach to dollar cost averaging into fixed income
investments during these kinds of periods has proven a very effective
and profitable long term strategy.
So where are we headed? Voyageur remains firmly in the camp that volatility will
inevitability trend higher. The key to our volatility argument is the belief
that expectations related to the Fed are becoming more divergent with each
passing week. Some pundits speculate that the long term tightening cycle is near
and the Fed stops after one or two more rate increases. The thought is that the
economy begins to slow during the latter half of 2006 and early 2007 and
inflation will be successfully contained. While this expectation is more to the
fixed income market's, and my own,
1
================================================================================
LETTER FROM THE CIO OF FIXED INCOME
================================================================================
liking all of this handicapping and speculation as to subsequent Fed action
will likely reintroduce volatility to the bond market.
Unfortunately, a new and perhaps more troubling scenario is also being
discussed in fixed income circles. This being that amid strong growth prospects
globally, inflation concerns domestically, escalating commodity costs, high
resource utilization and a low unemployment rate, the Fed could be forced to
raise interest rates significantly higher. While current economic data and
inflation numbers do not necessarily support this scenario, it is a distinct
possibility that rates may move significantly higher than current expectations.
I believe this scenario would result in a very negative impact on the U.S.
economy.
We at Voyageur are in the camp that believes the economy would be better off if
the Fed takes a pause at some point soon as opposed to pushing toward much
higher rates. It is important to note that we believe we are in the midst of a
cyclical bear market for fixed income - not a long-term bear market as this
recently emerging skeptical outlook would indicate. We don't think we are
headed back to double digit long term interest rates similar to the late 1970's
- - even if crude oil rises to $80 a barrel and we are forced to pay over $3 for
a gallon of gasoline. The Federal Reserve's hawkish policies should prove
successful in combating core inflation, and the higher level of interest rates
will begin to curb consumption and economic growth in upcoming years. While
earnings have continued to show solid growth, we are beginning to see signs of
a slowdown in the real estate market as long term interest rates have trended
higher. So while we have confidence in the Fed's ability to fight inflation,
the larger risk is perhaps they continue to throw punches after the bell
sounds.
In the end, it remains to be seen whether the Fed's job is nearly over or new
inflationary risks present themselves. Our hope is the U.S. economy will find a
comfort zone of controlled growth and contained inflation. With respect to our
current fixed income strategy, we remain relatively defensive versus our long
term asset targets. Our concerns center on a potentially slowing economy in
upcoming years, a leveraged U.S. consumer and a Fed that should be moving to a
more neutral monetary policy. Speculative investing, shareholder enhancement
activity and increased risk-taking are all potential sources of additional
problems. That said, interest rates have moved higher and the U.S. economy and
its workforce have historically proved resilient and flexible. With yields on a
diversified fixed income portfolio hovering near 5.5% many investors will
continue to rightly include bonds as a core portion of their investment
portfolio.
We will remain steadfast in our investment philosophy and risk disciplines,
which include not making bets on the direction of interest rates. We sincerely
value and appreciate your continued support.
/s/ John Huber
John Huber
Chief Investment Officer, Fixed Income Funds
Tamarack Funds
[PHOTO]
JOHN HUBER
CHIEF INVESTMENT OFFICER
FIXED INCOME FUNDS
2
================================================================================
FIXED INCOME PORTFOLIO MANAGERS
================================================================================
- --------------------------------------------------------------------------------
Voyageur Asset Management Inc. ("Voyageur"), the investment advisor to the
Tamarack Funds, employs a team approach to the management of each of the fixed
income funds. Each Fund's management team has access to Voyageur's investment
research and other money management resources. The members of Voyageur's fixed
income funds team are:
- --------------------------------------------------------------------------------
JOHN M. HUBER, CFA
CHIEF INVESTMENT OFFICER - FIXED INCOME
Mr. John Huber is Chief Investment Officer of Fixed Income at Voyageur. His
responsi bilities include overseeing and directing Voyageur's fixed income
division. John joined Voyageur in 2004 from Galliard Capital Management where he
was a principal and senior portfolio manager, responsible for the firm's total
return fixed income effort. Prior to working for Galliard, John was a portfolio
manager for Norwest Investment Management where he began his career in 1990.
John received a BA from the University of Iowa and an MBA in Finance from the
University of Minnesota, Carlson School of Management. John is a CFA
charterholder and a member of the CFA Society of Minnesota.
- --------------------------------------------------------------------------------
JAMES A. NORUNGOLO, CFA
VICE PRESIDENT, CREDIT TEAM LEAD, SENIOR PORTFOLIO MANAGER
Mr. James Norungolo is the Credit Team Lead for the Voyageur fixed income
division. James is responsible for guiding Voyageur's corporate investment
process and identifying relative value opportunities for Voyageur's fixed income
clients. In addition, James serves as a Senior Portfolio Manager for many of our
core and core plus taxable fixed income clients. He has been with Voyageur since
1993 and has held several critical roles within the organization including
credit/equity analyst, structured product analyst and portfolio administration.
Prior to joining Voyageur, James worked for Westport Bank & Trust, NationsBank
and Sovran Capital Management. James began his career in the investment industry
in 1987 and received a BA from the University of Virginia. James is a CFA
charterholder.
- --------------------------------------------------------------------------------
RAYE C. KANZENBACH, CFA
SENIOR MANAGING DIRECTOR, SENIOR PORTFOLIO MANAGER
Mr. Raye Kanzenbach is a member of the Voyageur Credit Team, on which he
provides expertise in the taxable and tax-exempt municipal sectors. Raye also
serves as a Senior Portfolio Manager and plays a leadership role in Voyageur's
money market management capabilities. Raye has been with Voyageur and its
predecessor firm, Insight Investment Management, since 1983. Prior to joining
Voyageur, Raye was employed at First Bank, Minneapolis where he managed the
municipal and money market trust funds. He also supervised the municipal and
corporate credit analysis areas for the Trust Department and First Bank's
investment portfolio. Prior to First Bank, Raye was employed as an investment
officer with the St. Paul Companies. Raye began his career in the investment
industry in 1973 and received a BA from Lawrence University and an MBA from the
University of Michigan. He is a CFA charterholder.
3
================================================================================
FIXED INCOME PORTFOLIO MANAGERS
================================================================================
- --------------------------------------------------------------------------------
RANDAL W. HARRISON, CFA
VICE PRESIDENT, PORTFOLIO SOLUTIONS TEAM LEAD, SENIOR PORTFOLIO MANAGER
Mr. Randal Harrison is responsible for leading the Voyageur Portfolio Solutions
Team, where he draws upon his background in all sectors of the fixed income
market along with his specific expertise in mortgage-backed and commercial
mortgage-backed securities. Randy also serves as a Senior Portfolio Manager and
has managed accounts for many of Voyageur's taxable fixed income clients. Prior
to joining Voyageur in 1993, Randy was a securities analyst and trader for
AEGON USA Insurance Group, developing and executing mortgage strategies for
their $5 billion mortgage-backed insurance portfolio. He began his career in
the investment industry in 1990 and holds a BS from Miami University (Ohio), an
MBA from the University of Iowa and is a CFA charterholder.
- --------------------------------------------------------------------------------
TODD BRUX, CFA
DIRECTOR OF PORTFOLIO ANALYTICS
Mr. Todd Brux, Voyageur's Director of Portfolio Analytics, is responsible for
supporting analytical needs of the firm's fixed income department. His focus is
on data integrity, valuation, historical analysis, statistical analysis, risk
measurement, relative value analysis and portfolio analysis. This role is
integrated with Voyageur's portfolio management process. Prior to joining
Voyageur in 2004, Todd was with GMAC RFC from March 2004 to October 2004 where
he served as Head Trader of their mortgage strategy; prior to that, he was a
Senior Investment Analyst at Galliard Capital Management from September 1999 to
March 2004. Todd, an 11-year industry veteran, is a CFA charterholder and
received his BA from the University of Wisconsin-Madison with a double major in
Economics and Political Science.
- --------------------------------------------------------------------------------
STEVEN P. ELDREDGE, CFA
MANAGING DIRECTOR, CLIENT PORTFOLIO MANAGEMENT TEAM LEAD, CLIENT PORTFOLIO
MANAGER
Mr. Steven Eldredge utilizes his 25 plus years of experience in the fixed
income industry to lead the Voyageur fixed income Client Portfolio Management
Team. Steve has an extensive background in both the taxable and tax-exempt
markets. Prior to joining Voyageur in 1995, Steve was chief operating officer
for the ABT Mutual Fund family. Steve began his career in the investment
industry in 1978 as a portfolio manager for a bank holding company in Florida.
Steve received his BA in Finance from the University of Central Florida. He is
a CFA charterholder and member of the CFA Society of Minnesota.
4
================================================================================
PERFORMANCE SUMMARY
================================================================================
Total Returns as of March 31, 2006
- --------------------------------------------------------------------------------
TAMARACK GOVERNMENT INCOME FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (a)
------ ------ ------ ------- -------------
Class A (d)
- Including Maximum Sales
Charge of 3.75% -2.24% -0.24% 2.74% 4.43% 5.03%
- At Net Asset Value -1.52% 1.04% 3.54% 4.83% 5.29%
Class C (e)
- Including Contingent Deferred
Sales Charge of 1.00% -0.34% 0.26% 2.75% 4.04% 4.50%
- At Net Asset Value -0.64% 0.26% 2.75% 4.04% 4.50%
Class I (d) -1.68% 1.28% 3.79% 5.08% 5.60%
Class R (e) -1.17% 0.77% 3.27% 4.56% 5.03%
Class S (f) -1.68% 1.23% 3.76% 5.07% 5.60%
LB Intermediate Gov't Index* -2.07% 1.69% 4.14% 5.54% 6.27%
- --------------------------------------------------------------------------------
TAMARACK QUALITY FIXED INCOME FUND
SINCE
1 YEAR 3 YEAR 5 YEAR INCEPTION (b)
------ ------ ------ -------------
Class A (d)
- Including Maximum Sales
Charge of 3.75% -1.91% 1.13% 2.81% 3.96%
- At Net Asset Value 1.88% 2.44% 3.60% 4.53%
Class C (e)
- Including Contingent Deferred
Sales Charge of 1.00% 0.20% 1.70% 2.85% 3.77%
- At Net Asset Value 1.18% 1.70% 2.85% 3.77%
Class I (d) 2.02% 2.69% 3.85% 4.78%
Class R (e) 1.62% 2.18% 3.34% 4.27%
Class S (f) 2.13% 2.69% 3.84% 4.78%
LB U.S. Aggregate Bond Index* 2.26% 2.92% 5.11% 5.68%
- --------------------------------------------------------------------------------
TAMARACK TAX-FREE INCOME FUND
SINCE
1 YEAR 3 YEAR 5 YEAR 10 YEAR INCEPTION (c)
------ ------ ------ ------- -------------
Class A (g)
- Including Maximum Sales
Charge of 3.75% -1.97% 0.93% 2.87% 4.12% 6.12%
- At Net Asset Value 1.89% 2.24% 3.66% 4.51% 6.28%
Class C (g)
- Including Contingent Deferred
Sales Charge of 1.00% 0.05% 1.49% 2.89% 3.74% 5.49%
- At Net Asset Value 1.03% 1.49% 2.89% 3.74% 5.49%
Class R (g) 1.51% 1.98% 3.39% 4.25% 6.01%
Class S 2.03% 2.49% 3.91% 4.77% 6.54%
LB Municipal Quality Intermediate
3-15 Year Index 2.99% 3.27% 4.69% 5.48% N/A
LB Municipal Bond Index* 3.81% 4.10% 5.18% 5.87% 8.08%
- --------------------------------------------------------------------------------
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE. PAST PERFORMANCE IS NO
GUARANTEE OF FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN
INVESTMENT WILL FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE
WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR
HIGHER THAN PERFORMANCE
5
================================================================================
PERFORMANCE SUMMARY
================================================================================
QUOTED. FOR PERFORMANCE DATA CURRENT TO MOST RECENT MONTH-END GO TO
WWW.TAMARACKFUNDS.COM.
*Each of the comparative indices is a widely recognized market value weighted
measure of the return of securities. Index returns are calculated on a monthly
basis, but do not include sales fees or operating expenses. You cannot invest
directly into indices.
(a) The since inception date (commencement of operations) of the Fund is
December 31, 1990.
(b) The since inception date (commencement of operations) of the Fund is May
10, 1999.
(c) The since inception date (commencement of operations) of the Fund is
February 22, 1980.
(d) The performance in the table reflects the performance of the former RBC
Funds, the predecessors to the Tamarack Funds. The quoted performance of
Government Income Fund includes the performance of a common trust fund
("CTF") account advised by the Advisor (including its predecessor) and
managed the same as the Fund in all material respects, for periods dating
prior to the Government Income Fund's commencement of operations on June 1,
1994, as adjusted to reflect the full contractual rate of expenses
associated with the Fund at its inception. The CTF account was not
registered with the SEC under the 1940 Act and therefore was not subject to
the investment restrictions imposed by law on registered mutual funds. If
the CTF account had been registered, the CTF account's performance may have
been adversely affected. Fund performance reflects applicable fee
waiver/expense reimbursements (which, if excluded, would cause performance
to be lower).
(e) The inception date for Class C and Class R shares of the Fund is April 19,
2004. All performance shown for each such class of shares prior to its
inception date is based on the performance of the Class A Shares of the
Fund, adjusted to reflect the fees and expenses of Class C and Class R
shares, as applicable (and where applicable, the maximum sales charges of
the Class C shares).
(f) The inception date for Class S of the Fund is April 19, 2004. All
performance shown for such class of shares prior to its inception date is
based on the performance of the Class I Shares of the Fund, adjusted to
reflect the fees and expenses of Class S.
(g) The inception date for Class A, Class C and Class R shares of the Fund is
April 19, 2004. All performance shown for each such class of shares prior
to its inception date is based on the performance of the Class S Shares of
the Fund, adjusted to reflect the fees and expenses of Class A, Class C and
Class R shares, as applicable (and where applicable, the maximum sales
charges of the Class A and Class C shares).
6
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Government Income Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Relatively high current income consistent with relative stability of principal
and safety
- --------------------------------------------------------------------------------
PERFORMANCE
Over the six-month period ended March 31, 2006, the Fund returned -0.16% (Class
A, net of fees). The unmanaged Lehman Brothers Intermediate Government Bond
Index, our Fund's primary benchmark, returned 0.29% during this time. We avoid
making bets on the direction of interest rates given that over the long term
rate anticipation (or guessing where rates will go) has proven to introduce
unacceptable risk to relative returns. Therefore, during periods of rising
interest rates, such as the last six months, the absolute price performance of
the Fund may underperform its benchmark index.
- --------------------------------------------------------------------------------
FACTORS THAT MADE POSITIVE CONTRIBUTIONS
o Most mortgage-backed securities enjoyed strong returns during the
first quarter of 2006, which enhanced performance given the Fund's
nearly 60% market value allocation to a variety of mortgage assets.
o The Fund benefited from holding fewer agency securities than the
benchmark during the fourth quarter of 2005, as these securities
diminished in price below the positive returns provided by their
income. Unfortunately, carrying fewer agency debt securities did not
benefit the portfolio enough to offset mortgage-backed securities'
fourth quarter 2005 price declines.
o During the first quarter of 2006, we added agency debt securities up
to nearly 70% of the benchmark's weighting, as they appeared more
attractive for purchase after their weaker returns late in 2005. These
trades greatly buffered the effects from rising agency valuations
during the first quarter, as we positioned the portfolio to much more
closely aligned with the benchmark's exposure.
- --------------------------------------------------------------------------------
FACTORS THAT DETRACTED
FROM RELATIVE RETURNS
o The Fund experienced lower price returns on certain mortgage-backed
and Agency debt issues purchased to enhance the portfolio's income
returns. The income earned from these securities was largely off-set
by their weaker price.
o Valuations particularly declined on multi-family backed mortgage
securities that have historically represented about one third of the
Fund's holdings.
[PHOTO]
RANDAL W. HARRISON, CFA
7
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Government Income Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Relatively high current income consistent with relative stability of principal
and safety
- --------------------------------------------------------------------------------
BENCHMARK
Lehman Brothers Intermediate Government Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS
EXCLUDING SECURITIES
LENDING COLLATERAL)
[PIE CHART]
U.S. GOVERNMENT AGENCY OBLIGATIONS 64.4%
U.S. TREASURY NOTES 14.2%
U.S. TREASURY INFLATION PROTECTION BONDS 7.8%
INVESTMENT COMPANIES 6.6%
COLLATERALIZED MORTGAGE OBLIGATIONS 4.2%
MORTGAGE BONDS 1.7%
ASSET BACKED SECURITIES 1.1%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
U.S. Treasury Note, FNMA 5.76%, 12/25/11 3.51%
3.50%, 02/15/10 6.86% FNMA 4.62%, 07/01/33 3.36%
FNMA 4.25%, 07/15/07 6.67% FNMA 5.06%, 12/01/34 3.14%
U.S. Treasury Inflation Protection U.S. Treasury Inflation Protection
Bonds 1.88%, 07/15/13 5.22% Bonds 2.00%, 07/15/14 3.07%
FNMA 4.63%, 12/01/11 4.77% FNMA 4.16%, 01/01/35 3.00%
U.S. Treasury Note,
3.63%, 06/30/07 3.90%
*A listing of all portfolio holdings can be found on page 32.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
----------------------------------------------
LEHMAN BROTHERS
INTERMEDIATE
GOVERNMENT
CLASS A INDEX
----------------------------------------------
3/31/96 9,625 10,000
----------------------------------------------
9/30/96 9,798 10,240
----------------------------------------------
3/31/97 9,947 10,475
----------------------------------------------
9/30/97 10,441 11,042
----------------------------------------------
3/31/98 10,830 11,457
----------------------------------------------
9/30/98 11,461 12,214
----------------------------------------------
3/31/99 11,465 12,210
----------------------------------------------
9/30/99 11,470 12,309
----------------------------------------------
3/31/00 11,611 12,505
----------------------------------------------
9/30/00 12,140 13,074
----------------------------------------------
3/31/01 12,967 14,000
----------------------------------------------
9/30/01 13,650 14,757
----------------------------------------------
3/31/02 13,542 14,697
----------------------------------------------
9/30/02 14,637 16,001
----------------------------------------------
3/31/03 14,958 16,306
----------------------------------------------
9/30/03 15,095 16,560
----------------------------------------------
3/31/04 15,380 16,891
----------------------------------------------
9/30/04 15,282 16,875
----------------------------------------------
3/31/05 15,197 16,797
----------------------------------------------
9/30/05 15,452 17,095
----------------------------------------------
3/31/06 15,428 17,145
----------------------------------------------
The graph reflects an initial investment of $10,000 over a 10 year period and
is based on Class A shares including the maximum sales charge of 3.75%. The
Fund's total return includes reinvested dividends and capital gains. The Fund's
total return also includes operating expenses that reduce return, while the
total return of the index does not. The graph does not reflect the deduction of
taxes that a shareholder would pay on fund distributions or redemption of fund
shares. Performance of other classes will vary due to differences in fee
structures.
8
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Quality Fixed Income Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Current income and capital appreciation
- --------------------------------------------------------------------------------
PERFORMANCE
Over the six-month period ended March 31, 2006, the Fund produced a return of
- -0.26% (Class A, net of fees). The unmanaged Lehman Brothers U.S. Aggregate Bond
Index, our Fund's primary benchmark, returned -0.06% during this time. We avoid
making bets on the direction of interest rates given that over the long term,
rate anticipation (or guessing where rates will go) has proven to introduce
unacceptable risk to relative returns. Therefore, during periods of rising
interest rates such as the last six months the absolute price performance of the
Fund may underperform in comparison to its benchmark index.
- --------------------------------------------------------------------------------
FACTORS THAT MADE POSITIVE CONTRIBUTIONS TO RELATIVE RETURNS
o The Fund's holdings in floating rate debt experienced good returns
relative to short fixed rate debt. During periods of rising yields
such as that experienced in short interest rates during the last six
months, the prices of fixed rate debt will decline while floating rate
securities, owing to their regular coupon rate adjustments, experience
much less negative price pressure.
o Our mortgage-backed and related structured product investments have
been selected to feature less interest rate sensitivity (especially
related to early payment of principal) than the generic mortgages
featured in our benchmark index. The Fund's over-allocation to
commercial and multi-family mortgages, as well as to residential
"Hybrid ARMs" (mortgages that begin with a short period, typically 3-7
years, at a fixed interest rate, followed by a floating rate for the
remaining life of the loan) proved to add value versus the more common
residential fixed rate mortgages found in the index.
- --------------------------------------------------------------------------------
FACTORS THAT DETRACTED FROM RELATIVE RETURNS
o The first quarter of 2006 brought a strong recovery in lower quality,
longer maturity corporate bond performance. Our ongoing underweight in
this area of the market, which we have viewed as expensive even after
accounting for impressive corporate profit growth, was a negative
contributor during the most recent three months.
o While short interest rates continued to move upward in the early part
of 2006, long Treasury yields increased even more. The Fund holds more
long Treasuries than its index, largely as a high quality substitute
for expensive corporate debt. The degree of rising long rates given
our positioning acted as a drag on our relative performance.
[PHOTO]
JAMES A. NORUNGOLO, CFA
9
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Quality Fixed Income Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Current income and capital appreciation
- --------------------------------------------------------------------------------
BENCHMARK
Lehman Brothers U.S. Aggregate Bond Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS
EXCLUDING SECURITIES
LENDING COLLATERAL)
[PIE CHART]
U.S. GOVERNMENT AGENCY OBLIGATIONS 32.2%
CORPORATE BONDS 28.9%
COLLATERALIZED MORTGAGE BACKED SECURITIES 15.3%
U.S. TREASURY BONDS 10.4%
MUNICIPAL BONDS 4.5%
COMMERICAL MORTGAGE BACKED SECURITIES 4.4%
U.S. TREASURY INFLATION PROTECTION BONDS 3.6%
ASSET BACKED SECURITIES 0.6%
INVESTMENT COMPANIES 0.1%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
U.S. Treasury Bond, FNMA 5.76%, 12/25/11 1.83%
5.38%, 02/15/31 5.24% U.S. Treasury Inflation Protection
U.S. Treasury Note, Bonds 1.88%, 07/15/13 1.81%
4.00%, 02/15/15 2.46% U.S. Treasury Inflation Protection
Countrywide Alternative Loan Bonds 2.00%, 07/15/14 1.77%
Trust, 5.00%, 07/25/19 2.43% Merrill Lynch Mortgage Investors,
FNMA 4.63%, 12/01/11 2.31% Inc. Series 2005-A1
U.S. Treasury Bond, 4.59%, 12/25/34 1.62%
6.25%, 08/15/23 2.11% FNMA 5.50%, 06/01/23 1.51%
*A listing of all portfolio holdings can be found on page 34.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT SINCE INCEPTION
[FLOW CHART]
----------------------------------------------
LEHMAN BROTHERS
U.S. AGGREGATE
BOND
CLASS A INDEX
----------------------------------------------
5/11/99 9,625 10,000
----------------------------------------------
9/30/99 9,586 12,486
----------------------------------------------
3/31/00 9,794 12,745
----------------------------------------------
9/30/00 10,171 13,358
----------------------------------------------
3/31/01 10,949 14,343
----------------------------------------------
9/30/01 11,349 15,089
----------------------------------------------
3/31/02 11,078 15,110
----------------------------------------------
9/30/02 11,874 16,386
----------------------------------------------
3/31/03 12,156 16,875
----------------------------------------------
9/30/03 12,437 17,272
----------------------------------------------
3/31/04 12,730 17,787
----------------------------------------------
9/30/04 12,784 17,907
----------------------------------------------
3/31/05 12,826 17,992
----------------------------------------------
9/30/05 13,101 18,408
----------------------------------------------
3/31/06 13,066 18,398
----------------------------------------------
The graph reflects an initial investment of $10,000 since inception of
5/10/1999 and is based on Class A shares including the maximum sales charge of
3.75%. The Fund's total return includes reinvested dividends and capital gains.
The Fund's total return also includes operating expenses that reduce return,
while the total return of the index does not. The graph does not reflect the
deduction of taxes that a shareholder would pay on fund distributions or
redemption of fund shares. Performance of other classes will vary due to
differences in fee structures.
10
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Tax-Free Income Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Providing the highest level of regular income exempt from federal income tax
consistent with stated quality and maturity standards
- --------------------------------------------------------------------------------
PERFORMANCE
For the six month period ending March 31, 2006, the Fund had a total return of
0.09% (Class A, net of fees) compared to the Lehman Municipal Quality
Intermediate 3-15 Year Municipal Index of 0.64%, and the Lehman Municipal Bond
Index of 0.98% the Fund's primary and secondary benchmarks.
- --------------------------------------------------------------------------------
FACTORS THAT MADE POSITIVE CONTRIBUTIONS TO RELATIVE RETURNS
o During the first quarter of 2006, we purchased bonds rated below
A-rated credit quality, which performed strongly. These higher
yielding bonds are all of investment grade quality.
o During the six-month period ended March 31, 2006, we began a process
of replacing lower-yielding callable bonds with higher-yielding
non-callable bonds in order to boost the income yield of the Fund. As
more non-callable bonds meeting our credit criteria become available,
we will continue to replace callable securities with non-callable
bonds.
- --------------------------------------------------------------------------------
FACTORS THAT DETRACTED FROM RELATIVE RETURNS
o The Fund had its highest concentration of holdings in the 6- to
12-year maturity range, which had total returns lower than bonds in
other maturity ranges.
o Bonds rated below A have had stronger returns in recent quarters than
those of higher rated securities. Although the Fund intends to
continue to invest only in bonds that are rated or we deem to be rated
investment grade, we do intend to improve the Fund's yield performance
by purchasing more securities with ratings below A, up to the limits
described in the Fund's prospectus.
[PHOTO]
RAYE C. KANZENBACH, CFA
11
================================================================================
MANAGEMENT DISCUSSION AND ANALYSIS
================================================================================
Tamarack Tax-Free Income Fund
- --------------------------------------------------------------------------------
INVESTMENT OBJECTIVE
Providing the highest level of regular income exempt from federal income tax
consistent with stated quality and maturity standards
- --------------------------------------------------------------------------------
BENCHMARK
Lehman Brothers Municipal Quality Intermediate 3-15 Year Index
- --------------------------------------------------------------------------------
ASSET ALLOCATION
(% OF FUND'S INVESTMENTS)
[PIE CHART]
MUNICIPAL BONDS 96.3%
INVESTMENT COMPANIES 3.7%
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
(AS OF 3/31/06)
(% OF FUND'S NET ASSETS)
Cook County Township Weld County School
High School District, District, 5.50%, 12/01/19 5.12%
5.50%, 12/01/19 5.34% Massachusetts State Construction
Bridgeport, Series A, Loan, Series E, 5.38% 01/01/17 5.09%
6.00%, 07/15/14 5.17% Seattle Municipal Light and
Massachusetts State Health & Power, 5.63%, 12/01/16 5.04%
Education Facilities Authority New York City Transitional
(Partners Healthcare), Series C, Finance Future Tax, Series B,
5.75%, 07/01/12 5.15% 5.50%, 02/01/16 4.00%
Chicago, Series B, Howell Public Schools,
5.13%, 01/01/22 5.15% 5.25% 05/01/15 3.75%
Hartland School District
Construction, 6.00%, 05/01/20 5.12%
*A listing of all portfolio holdings can be found on page 40.
- --------------------------------------------------------------------------------
GROWTH OF $10,000 INITIAL
INVESTMENT OVER 10 YEARS
[FLOW CHART]
- --------------------------------------------------------------------------------
LEHMAN BROTHERS
LEHMAN-BROTHERS MUNICIPAL QUALITY
MUNICIPAL INTERMEDIATE
CLASS A CLASS S BOND INDEX 3-15 YEAR INDEX
- --------------------------------------------------------------------------------
3/31/96 9,526 10,000 10,000 10,000
- --------------------------------------------------------------------------------
9/30/96 9,871 10,265 10,307 10,245
- --------------------------------------------------------------------------------
3/31/97 10,069 10,483 10,545 10,501
- --------------------------------------------------------------------------------
9/30/97 10,676 11,130 11,237 11,115
- --------------------------------------------------------------------------------
3/31/98 11,035 11,518 11,675 11,503
- --------------------------------------------------------------------------------
9/30/98 11,473 11,991 12,216 12,009
- --------------------------------------------------------------------------------
3/31/99 11,572 12,109 12,398 12,202
- --------------------------------------------------------------------------------
9/30/99 11,238 11,774 12,131 12,062
- --------------------------------------------------------------------------------
3/31/00 11,405 11,963 12,389 12,303
- --------------------------------------------------------------------------------
9/30/00 11,786 12,378 12,880 12,769
- --------------------------------------------------------------------------------
3/31/01 12,512 13,157 13,742 13,550
- --------------------------------------------------------------------------------
9/30/01 12,849 13,529 14,219 14,028
- --------------------------------------------------------------------------------
3/31/02 12,801 13,495 14,265 14,073
- --------------------------------------------------------------------------------
9/30/02 13,928 14,701 15,490 15,264
- --------------------------------------------------------------------------------
3/31/03 14,010 14,807 15,676 15,474
- --------------------------------------------------------------------------------
9/30/03 14,449 15,289 16,093 15,920
- --------------------------------------------------------------------------------
3/31/04 14,734 15,611 16,595 16,300
- --------------------------------------------------------------------------------
9/30/04 14,772 15,670 16,833 16,527
- --------------------------------------------------------------------------------
3/31/05 14,695 15,625 17,037 16,549
- --------------------------------------------------------------------------------
9/30/05 14,959 15,908 17,515 16,936
- --------------------------------------------------------------------------------
3/31/06 14,973 15,942 17,686 17,045
- --------------------------------------------------------------------------------
The graph reflects an initial investment of $10,000 over a 10 year period and
is based on Class A shares including the maximum sales charge of 3.75%. The
inception date for Class A shares of the Fund is April 19, 2004. All
performance shown for Class A shares prior to the inception date is based on
the performance of the Class S shares of the Fund, adjusted to reflect the
fees, expenses and maximum sales charges of Class A shares. The Fund's total
return includes reinvested dividends and capital gains. The Fund's total return
also includes operating expenses that reduce return, while the total return of
the index does not. The graph does not reflect the deduction of taxes that a
shareholder would pay on fund distributions or redemption of fund shares.
Performance of other classes will vary due to differences in fee structures.
The Fund has recently added the Lehman Brothers Municipal Quality Intermediate
3-15 Year Index as its primary benchmark because Fund management has determined
that this benchmark more closely reflects the universe of securities in which
the Fund invests.
12
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
TAMARACK TAMARACK TAMARACK
GOVERNMENT QUALITY FIXED TAX-FREE
INCOME FUND INCOME FUND INCOME FUND
----------- ------------- -----------
ASSETS:
Investments, at market value (cost
$5,491,883; $68,676,661 and
$20,472,817, respectively) $ 5,357,687 $66,977,799 $21,210,359
Investment of Cash Collateral for Securities
on Loan, at market value (cost
$674,016; $9,753,015 and $-,
respectively) 674,016 9,753,015 -
----------- ----------- -----------
Total Investments 6,031,703 76,730,814 21,210,359
Interest and dividends receivable 33,100 620,117 243,903
Cash - 2,796 -
Receivable for capital shares issued 43 492 34,099
Receivable for investments sold - 7,334 -
Receivable from advisor 17,091 9,481 8,880
Prepaid expenses 30,531 42,553 38,124
----------- ----------- -----------
Total Assets 6,112,468 77,413,587 21,535,365
----------- ----------- -----------
LIABILITIES:
Distributions payable 19,171 272,320 68,998
Payable for capital shares redeemed 3,881 59,216 2,302
Payable for investments purchased 339,711 640,698 212,138
Payable upon return of securities on loan 674,016 9,753,015 -
Accrued expenses and other payables:
Administration fees 436 5,740 1,834
Distribution fees 683 222 19
Other 28,456 60,992 21,146
----------- ----------- -----------
Total Liabilities 1,066,354 10,792,203 306,437
----------- ----------- -----------
Net Assets $ 5,046,114 $66,621,384 $21,228,928
=========== =========== ===========
NET ASSETS CONSIST OF:
Capital $ 5,589,501 $71,222,061 $20,221,567
Undistributed net investment income (loss) (49,029) (199,057) 10
Accumulated net realized gains (losses)
from investment transactions (360,162) (2,702,758) 269,809
Net unrealized appreciation (depreciation)
on investments (134,196) (1,698,862) 737,542
----------- ----------- -----------
Net Assets $ 5,046,114 $66,621,384 $21,228,928
=========== =========== ===========
13
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Assets and Liabilities (cont.)
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
TAMARACK TAMARACK TAMARACK
GOVERNMENT QUALITY FIXED TAX-FREE
INCOME FUND INCOME FUND INCOME FUND
----------- ------------- -----------
NET ASSETS:
Class A $3,138,313 $ 1,013,197 $ 69,613
Class I 1,741,487 1,255,388 -
Class C 3,277 3,367 3,331
Class R 8,275 6,948 3,360
Class S 154,762 64,342,484 21,152,624
---------- ----------- -----------
Total $5,046,114 $66,621,384 $21,228,928
========== =========== ===========
SHARES OUTSTANDING:
Class A 315,845 108,017 8,017
Class I 175,344 133,776 -
Class C 330 359 384
Class R 832 741 387
Class S 15,589 6,859,061 2,435,938
---------- ----------- -----------
Total 507,940 7,101,954 2,444,726
========== =========== ===========
NET ASSET VALUES:
Class A (a) $ 9.94 $ 9.38 $ 8.68
========== =========== ===========
Class I $ 9.93 $ 9.38 -
========== =========== ===========
Class C (b) $ 9.94 $ 9.38 $ 8.68
========== =========== ===========
Class R $ 9.95 $ 9.38 $ 8.68
========== =========== ===========
Class S $ 9.93 $ 9.38 $ 8.68
========== =========== ===========
MAXIMUM OFFERING PRICE PER SHARE:
Class A $ 10.33 $ 9.75 $ 9.02
========== =========== ===========
Maximum Sales Charge - Class A 3.75% 3.75% 3.75%
========== =========== ===========
(a) For Class A shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase (only applicable on purchases
of $1 million or more).
(b) For Class C shares, redemption price per share is reduced by 1.00% for
sales of shares within 12 months of purchase.
SEE NOTES TO FINANCIAL STATEMENTS.
14
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Operations
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED MARCH 31, 2006 (UNAUDITED)
TAMARACK TAMARACK TAMARACK
GOVERNMENT QUALITY FIXED TAX-FREE
INCOME FUND INCOME FUND INCOME FUND
----------- ------------- -----------
INVESTMENT INCOME:
Interest income $ 79,155 $ 1,786,814 $ 525,607
Dividend income 3,038 27,908 10,615
Securities lending income (a) 668 21,597 -
----------- ----------- -----------
Total Investment Income 82,861 1,836,319 536,222
----------- ----------- -----------
EXPENSES:
Investment advisory fees 8,652 216,964 98,255
Administration Fees 2,884 36,160 11,559
Distribution fees - Class A 8,948 2,604 359
Distribution fees - Class C 16 16 16
Distribution fees - Class R 21 18 9
Accounting fees 6,691 44,907 11,402
Custodian fees 480 1,417 149
Insurance fees 6,249 50,229 15,254
Legal and Audit fees 10,778 15,045 11,392
Registration and filing fees 27,344 27,837 21,568
Shareholder reports 2,526 13,997 2,789
Transfer agent fees 33,428 80,173 27,685
Trustees' fees 12,865 12,865 12,865
Other fees 2,134 3,095 2,325
----------- ----------- -----------
Total expenses before fee reductions 123,016 505,327 215,627
Expenses reduced by:
Advisor (96,477) (256,795) (110,454)
Distributor (4,474) (1,249) (179)
----------- ----------- -----------
Net Expenses 22,065 247,283 104,994
----------- ----------- -----------
NET INVESTMENT INCOME 60,796 1,589,036 431,228
----------- ----------- -----------
REALIZED/UNREALIZED GAINS (LOSSES) FROM
INVESTMENTS:
Net realized gains (losses) from investment
transactions (16,175) (169,686) 293,379
Net change in unrealized appreciation
(depreciation) on investments (52,808) (1,496,908) (683,991)
----------- ----------- -----------
Net realized/unrealized losses from investments (68,983) (1,666,594) (390,612)
----------- ----------- -----------
Change in net assets resulting from operations $ (8,187) $ (77,558) $ 40,616
----------- ----------- -----------
(a) For more information on Securities Lending, please see Note 2 in the Notes
to Financial Statements.
SEE NOTES TO FINANCIAL STATEMENTS.
15
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK GOVERNMENT INCOME FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
---------------- ------------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 60,796 $ 323,840
Net realized losses from investment transactions (16,175) (190,233)
Net change in unrealized appreciation (depreciation) on
investments (52,808) 35,069
------------ ------------
Change in net assets from operations (8,187) 168,676
------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income (65,895) (171,177)
From net realized gains from investment transactions - (54,709)
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income (40,024) (258,641)
From net realized gains from investment transactions - (91,409)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income (48) (77)
From net realized gains from investment transactions - (29)
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income (144) (732)
From net realized gains from investment transactions - (238)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income (2,816) (484)
From net realized gains from investment transactions - (156)
------------ ------------
Change in net assets from shareholder distributions (108,927) (577,652)
------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 574,184 2,004,117
Dividends reinvested 104,154 505,568
Cost of shares redeemed (2,451,362) (15,017,638)
------------ ------------
Change in net assets from capital transactions (1,773,024) (12,507,953)
------------ ------------
Net decrease in net assets (1,890,138) (12,916,929)
NET ASSETS:
Beginning of period 6,936,252 19,853,181
------------ ------------
End of period $ 5,046,114 $ 6,936,252
============ ============
Undistributed net investment loss $ (49,029) $ (898)
============ ============
SHARE TRANSACTIONS:
Issued 56,937 195,123
Reinvested 10,354 49,167
Redeemed (243,708) (1,461,251)
------------ ------------
Change in shares from capital transactions (176,417) (1,216,961)
============ ============
SEE NOTES TO FINANCIAL STATEMENTS.
16
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK QUALITY FIXED INCOME FUND
FOR THE
FOR THE YEAR ENDED
SIX MONTHS ENDED SEPTEMBER 30,
MARCH 31, 2006 2005
---------------- -------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 1,589,036 $ 3,807,695
Net realized gains (losses) from investment transactions (169,686) 1,978,342
Net change in unrealized appreciation (depreciation) on
investments (1,496,908) (3,295,161)
------------- -------------
Change in net assets from operations (77,558) 2,490,876
------------- -------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income (23,509) (49,574)
DISTRIBUTIONS TO CLASS I SHAREHOLDERS:
From net investment income (38,800) (329,331)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income (61) (116)
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income (147) (794)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income (1,593,109) (3,504,773)
------------- -------------
Change in net assets from shareholder distributions (1,655,626) (3,884,588)
------------- -------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 644,661 3,565,535
Dividends reinvested 1,412,519 3,360,574
Cost of shares redeemed (10,660,222) (38,123,243)
------------- -------------
Change in net assets from capital transactions (8,603,042) (31,197,134)
------------- -------------
Net decrease in net assets (10,336,226) (32,590,846)
NET ASSETS:
Beginning of period 76,957,610 109,548,456
------------- -------------
End of period $ 66,621,384 $ 76,957,610
============= =============
Undistributed net investment loss $ (199,057) $ (132,467)
============= =============
SHARE TRANSACTIONS:
Issued 67,638 367,099
Reinvested 148,115 345,433
Redeemed (1,120,789) (3,916,622)
------------- -------------
Change in shares from capital transactions (905,036) (3,204,090)
============= =============
SEE NOTES TO FINANCIAL STATEMENTS.
17
================================================================================
FINANCIAL STATEMENTS
================================================================================
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
TAMARACK TAX-FREE INCOME FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2006 SEPTEMBER 30, 2005
---------------- ------------------
(UNAUDITED)
FROM INVESTMENT ACTIVITIES:
Operations:
Net investment income $ 431,228 $ 911,294
Net realized gains from investment transactions 293,379 122,962
Net change in unrealized appreciation (depreciation) on
investments (683,991) (644,000)
------------ ------------
Change in net assets from operations 40,616 390,256
------------ ------------
DISTRIBUTIONS TO CLASS A SHAREHOLDERS:
From net investment income (2,493) (5,674)
From net realized gains from investment transactions (1,009) (4,100)
DISTRIBUTIONS TO CLASS C SHAREHOLDERS:
From net investment income (46) (86)
From net realized gains from investment transactions (21) (85)
DISTRIBUTIONS TO CLASS R SHAREHOLDERS:
From net investment income (54) (102)
From net realized gains from investment transactions (21) (86)
DISTRIBUTIONS TO CLASS S SHAREHOLDERS:
From net investment income (428,649) (905,432)
From net realized gains from investment transactions (145,481) (676,987)
------------ ------------
Change in net assets from shareholder distributions (577,774) (1,592,552)
------------ ------------
CAPITAL TRANSACTIONS:
Proceeds from shares issued 452,051 710,004
Dividends reinvested 404,700 1,102,471
Cost of shares redeemed (3,192,392) (4,009,712)
------------ ------------
Change in net assets from capital transactions (2,335,641) (2,197,237)
------------ ------------
Net decrease in net assets (2,872,799) (3,399,533)
NET ASSETS:
Beginning of period 24,101,727 27,501,260
------------ ------------
End of period $ 21,228,928 $ 24,101,727
============ ============
Undistributed net investment income $ 10 $ 24
============ ============
SHARE TRANSACTIONS:
Issued 51,384 78,648
Reinvested 46,009 121,571
Redeemed (363,331) (442,707)
------------ ------------
Change in shares from capital transactions (265,938) (242,488)
============ ============
SEE NOTES TO FINANCIAL STATEMENTS.
18
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Government Income Fund
INVESTMENT ACTIVITIES
---------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED
VALUE, NET GAINS TOTAL FROM
BEGINNING OF INVESTMENT (LOSSES) ON INVESTMENT
PERIOD INCOME INVESTMENTS ACTIVITIES
------------ ---------- ------------ ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 10.14 0.08 (0.10) (0.02)
Year Ended September 30, 2005 10.44 0.24 (0.13) 0.11
Period Ended September 30, 2004 (d) 10.33 0.10 0.09 0.19
Year Ended April 30, 2004 10.80 0.23 (0.24) (0.01)
Year Ended April 30, 2003 10.26 0.38 0.54 0.92
Year Ended April 30, 2002 10.14 0.51 0.12 0.63
Year Ended April 30, 2001 9.66 0.56 0.48 1.04
CLASS I
Six Months Ended March 31, 2006 (Unaudited) $ 10.13 0.10 (0.10) -
Year Ended September 30, 2005 10.44 0.15 (0.02) 0.13
Period Ended September 30, 2004 (d) 10.33 0.11 0.09 0.20
Year Ended April 30, 2004 10.80 0.26 (0.24) 0.02
Year Ended April 30, 2003 10.26 0.40 0.54 0.94
Year Ended April 30, 2002 10.14 0.53 0.12 0.65
Year Ended April 30, 2001 9.66 0.58 0.48 1.06
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 10.14 0.07 (0.12) (0.05)
Year Ended September 30, 2005 10.44 0.17 (0.14) 0.03
Period Ended September 30, 2004 (d) 10.33 0.07 0.09 0.16
Period Ended April 30, 2004 (e) 10.43 - (0.10) (0.10)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 10.15 0.09 (0.12) (0.03)
Year Ended September 30, 2005 10.45 0.15 (0.08) 0.07
Period Ended September 30, 2004 (d) 10.33 0.07 0.12 0.19
Period Ended April 30, 2004 (e) 10.43 0.01 (0.10) (0.09)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 10.13 0.13 (0.13) -
Year Ended September 30, 2005 10.43 0.27 (0.14) 0.13
Period Ended September 30, 2004 (d) 10.32 0.11 0.09 0.20
Period Ended April 30, 2004 (e) 10.42 0.01 (0.10) (0.09)
RATIOS/SUPPLE
EMENTAL
DISTRIBUTIONS DATA
------------------------------------- -------------
NET ASSET NET ASSETS,
NET NET VALUE, END OF
INVESTMENT REALIZED TOTAL END OF TOTAL PERIOD
INCOME GAINS DISTRIBUTIONS PERIOD RETURN* (000'S)
---------- -------- ------------- --------- ----------- -------------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) (0.18) - (0.18) $ 9.94 (0.16%)(a) $ 3,138
Year Ended September 30, 2005 (0.32) (0.09) (0.41) 10.14 1.12% 4,557
Period Ended September 30, 2004 (d) (0.08) - (0.08) 10.44 1.87%(a) 6,308
Year Ended April 30, 2004 (0.23) (0.23) (0.46) 10.33 (0.05%) 6,063
Year Ended April 30, 2003 (0.38) - (0.38) 10.80 9.07% 6,233
Year Ended April 30, 2002 (0.51) - (0.51) 10.26 6.28% 5,113
Year Ended April 30, 2001 (0.56) - (0.56) 10.14 11.01% 5,139
CLASS I
Six Months Ended March 31, 2006 (Unaudited) (0.20) - (0.20) $ 9.93 (0.03%)(a) $ 1,741
Year Ended September 30, 2005 (0.35) (0.09) (0.44) 10.13 1.32% 2,351
Period Ended September 30, 2004 (d) (0.09) - (0.09) 10.44 1.97%(a) 13,512
Year Ended April 30, 2004 (0.26) (0.23) (0.49) 10.33 0.20% 18,321
Year Ended April 30, 2003 (0.40) - (0.40) 10.80 9.34% 24,375
Year Ended April 30, 2002 (0.53) - (0.53) 10.26 6.55% 24,308
Year Ended April 30, 2001 (0.58) - (0.58) 10.14 11.29% 33,859
CLASS C
Six Months Ended March 31, 2006 (Unaudited) (0.15) - (0.15) $ 9.94 (0.54%)(a) $ 3
Year Ended September 30, 2005 (0.24) (0.09) (0.33) 10.14 0.30% 3
Period Ended September 30, 2004 (d) (0.05) - (0.05) 10.44 1.56%(a) 3
Period Ended April 30, 2004 (e) - - - 10.33 (0.92%)(a) 3
CLASS R
Six Months Ended March 31, 2006 (Unaudited) (0.17) - (0.17) $ 9.95 (0.28%)(a) $ 8
Year Ended September 30, 2005 (0.28) (0.09) (0.37) 10.15 0.74% 9
Period Ended September 30, 2004 (d) (0.07) - (0.07) 10.45 1.85%(a) 26
Period Ended April 30, 2004 (e) (0.01) - (0.01) 10.33 (0.90%)(a) 3
CLASS S
Six Months Ended March 31, 2006 (Unaudited) (0.20) - (0.20) $ 9.93 (0.03%)(a) $ 155
Year Ended September 30, 2005 (0.34) (0.09) (0.43) 10.13 1.30% 16
Period Ended September 30, 2004 (d) (0.09) - (0.09) 10.43 1.97%(a) 3
Period Ended April 30, 2004 (e) (0.01) - (0.01) 10.32 (0.89%)(a) 3
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------
RATIO OF NET
RATIO OF INVESTMENT RATIO OF
EXPENSES TO INCOME EXPENSES TO
AVERAGE TO AVERAGE AVERAGE PORTFOLIO
NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
----------- ------------ ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) 0.86%(b) 2.02%(b) 4.45%(b) 44%
Year Ended September 30, 2005 1.10% 2.41% 2.65% 103%
Period Ended September 30, 2004 (d) 1.10%(b) 2.27%(b) 2.02%(b) 13%
Year Ended April 30, 2004 1.22% 2.16% 1.50% 77%
Year Ended April 30, 2003 1.08% 3.55% 1.33% 67%
Year Ended April 30, 2002 1.04% 4.93% 1.29% 35%
Year Ended April 30, 2001 0.93% 5.61% 1.18% 103%
CLASS I
Six Months Ended March 31, 2006 (Unaudited) 0.61%(b) 2.24%(b) 3.96%(b) 44%
Year Ended September 30, 2005 0.85% 2.58% 1.95% 103%
Period Ended September 30, 2004 (d) 0.85%(b) 2.52%(b) 1.46%(b) 13%
Year Ended April 30, 2004 0.96% 2.42% 0.99% 77%
Year Ended April 30, 2003 0.83% 3.82% (c) 67%
Year Ended April 30, 2002 0.79% 5.19% (c) 35%
Year Ended April 30, 2001 0.68% 5.87% (c) 103%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) 1.61%(b) 1.38%(b) 5.02%(b) 44%
Year Ended September 30, 2005 1.85% 1.68% 3.21% 103%
Period Ended September 30, 2004 (d) 1.85%(b) 1.52%(b) 2.55%(b) 13%
Period Ended April 30, 2004 (e) 2.02%(b) 1.23%(b) 2.25%(b) 77%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) 1.09%(b) 1.94%(b) 4.45%(b) 44%
Year Ended September 30, 2005 1.35% 2.19% 2.70% 103%
Period Ended September 30, 2004 (d) 1.35%(b) 1.68%(b) 2.46%(b) 13%
Period Ended April 30, 2004 (e) 1.46%(b) 1.75%(b) 1.61%(b) 77%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) 0.59%(b) 2.43%(b) 4.03%(b) 44%
Year Ended September 30, 2005 0.85% 2.75% 2.39% 103%
Period Ended September 30, 2004 (d) 0.85%(b) 2.54%(b) 1.48%(b) 13%
Period Ended April 30, 2004 (e) 1.01%(b) 2.17%(b) 1.23%(b) 77%
* Excludes sales charge.
** During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio
would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from May 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
19
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Quality Fixed Income Fund
INVESTMENT ACTIVITIES
---------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED
VALUE, NET GAINS TOTAL FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS ACTIVITIES
--------- ---------- ----------- ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 9.61 0.20 (0.22) (0.02)
Year Ended September 30, 2005 9.77 0.39 (0.15) 0.24
Period Ended September 30, 2004 (d) 9.65 0.16 0.13 0.29
Year Ended April 30, 2004 10.27 0.38 (0.25) 0.13
Year Ended April 30, 2003 9.84 0.41 0.47 0.88
Year Ended April 30, 2002 10.06 0.51 (0.15) 0.36
Year Ended April 30, 2001 9.50 0.58 0.58 1.16
CLASS I
Six Months Ended March 31, 2006 (Unaudited) $ 9.62 0.19 (0.21) (0.02)
Year Ended September 30, 2005 9.77 0.33 (0.06) 0.27
Period Ended September 30, 2004 (d) 9.65 0.17 0.13 0.30
Year Ended April 30, 2004 10.27 0.37 (0.21) 0.16
Year Ended April 30, 2003 9.84 0.42 0.48 0.90
Year Ended April 30, 2002 10.06 0.54 (0.15) 0.39
Year Ended April 30, 2001 9.50 0.60 0.58 1.18
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 9.61 0.17 (0.23) (0.06)
Year Ended September 30, 2005 9.77 0.32 (0.15) 0.17
Period Ended September 30, 2004 (d) 9.65 0.13 0.13 0.26
Period Ended April 30, 2004 (e) 9.73 0.01 (0.08) (0.07)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 9.61 0.18 (0.22) (0.04)
Year Ended September 30, 2005 9.77 0.35 (0.13) 0.22
Period Ended September 30, 2004 (d) 9.65 0.16 0.12 0.28
Period Ended April 30, 2004 (e) 9.73 0.01 (0.08) (0.07)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 9.61 0.21 (0.22) (0.01)
Year Ended September 30, 2005 9.77 0.41 (0.15) 0.26
Period Ended September 30, 2004 (d) 9.65 0.17 0.13 0.30
Period Ended April 30, 2004 (e) 9.73 0.01 (0.08) (0.07)
RATIOS/SUPPLE
EMENTAL
DISTRIBUTIONS DATA
--------------------------------------- -------------
NET ASSET NET ASSETS,
NET NET VALUE, END OF
INVESTMENT REALIZED TOTAL END OF TOTAL PERIOD
INCOME GAINS DISTRIBUTIONS PERIOD RETURN* (000'S)
---------- -------- ------------- --------- ----------- -------------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) (0.21) - (0.21) $ 9.38 (0.26%)(a) $ 1,013
Year Ended September 30, 2005 (0.40) - (0.40) 9.61 2.48% 1,188
Period Ended September 30, 2004 (d) (0.17) - (0.17) 9.77 2.96%(a) 1,257
Year Ended April 30, 2004 (0.41) (0.34) (0.75) 9.65 1.39% 1,128
Year Ended April 30, 2003 (0.44) (0.01) (0.45) 10.27 9.09% 501
Year Ended April 30, 2002 (0.52) (0.06) (0.58) 9.84 3.67% 493
Year Ended April 30, 2001 (0.58) (0.02) (0.60) 10.06 12.46% 324
CLASS I
Six Months Ended March 31, 2006 (Unaudited) (0.22) - (0.22) $ 9.38 (0.24%)(a) $ 1,255
Year Ended September 30, 2005 (0.42) - (0.42) 9.62 2.84% 2,511
Period Ended September 30, 2004 (d) (0.18) - (0.18) 9.77 3.18%(a) 18,990
Year Ended April 30, 2004 (0.44) (0.34) (0.78) 9.65 1.54% 30,990
Year Ended April 30, 2003 (0.46) (0.01) (0.47) 10.27 9.33% 47,658
Year Ended April 30, 2002 (0.55) (0.06) (0.61) 9.84 3.93% 64,912
Year Ended April 30, 2001 (0.60) (0.02) (0.62) 10.06 12.74% 77,808
CLASS C
Six Months Ended March 31, 2006 (Unaudited) (0.17) - (0.17) $ 9.38 (0.61%)(a) $ 3
Year Ended September 30, 2005 (0.33) - (0.33) 9.61 1.79% 3
Period Ended September 30, 2004 (d) (0.14) - (0.14) 9.77 2.75%(a) 3
Period Ended April 30, 2004 (e) (0.01) - (0.01) 9.65 (0.72%)(a) 3
CLASS R
Six Months Ended March 31, 2006 (Unaudited) (0.19) - (0.19) $ 9.38 (0.39%)(a) $ 7
Year Ended September 30, 2005 (0.38) - (0.38) 9.61 2.23% 9
Period Ended September 30, 2004 (d) (0.16) - (0.16) 9.77 2.96%(a) 20
Period Ended April 30, 2004 (e) (0.01) - (0.01) 9.65 (0.71%)(a) 3
CLASS S
Six Months Ended March 31, 2006 (Unaudited) (0.22) - (0.22) $ 9.38 (0.14%)(a) $64,342
Year Ended September 30, 2005 (0.42) - (0.42) 9.61 2.73% 73,246
Period Ended September 30, 2004 (d) (0.18) - (0.18) 9.77 3.07%(a) 89,278
Period Ended April 30, 2004 (e) (0.01) - (0.01) 9.65 (0.58%)(a) 97,237
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------
RATIO OF NET
RATIO OF INVESTMENT RATIO OF
EXPENSES TO INCOME EXPENSES TO
AVERAGE TO AVERAGE AVERAGE PORTFOLIO
NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
----------- ------------ ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) 0.93%(b) 4.15%(b) 1.87%(b) 32%
Year Ended September 30, 2005 0.93% 4.02% 1.82% 116%
Period Ended September 30, 2004 (d) 0.93%(b) 4.07%(b) 1.64%(b) 13%
Year Ended April 30, 2004 1.42% 3.56% 1.68% 87%
Year Ended April 30, 2003 1.31% 4.03% 1.56% 79%
Year Ended April 30, 2002 1.22% 5.03% 1.47% 88%
Year Ended April 30, 2001 1.16% 5.88% 1.41% 130%
CLASS I
Six Months Ended March 31, 2006 (Unaudited) 0.68%(b) 4.39%(b) 1.38%(b) 32%
Year Ended September 30, 2005 0.68% 4.32% 1.28% 116%
Period Ended September 30, 2004 (d) 0.68%(b) 4.39%(b) 1.09%(b) 13%
Year Ended April 30, 2004 1.18% 3.83% (c) 87%
Year Ended April 30, 2003 1.06% 4.30% (c) 79%
Year Ended April 30, 2002 0.97% 5.34% (c) 88%
Year Ended April 30, 2001 0.91% 6.10% (c) 130%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) 1.61%(b) 3.45%(b) 2.30%(b) 32%
Year Ended September 30, 2005 1.62% 3.33% 2.24% 116%
Period Ended September 30, 2004 (d) 1.68%(b) 3.33%(b) 2.09%(b) 13%
Period Ended April 30, 2004 (e) 1.69%(b) 3.03%(b) (c) 87%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) 1.19%(b) 3.91%(b) 1.96%(b) 32%
Year Ended September 30, 2005 1.18% 3.77% 1.81% 116%
Period Ended September 30, 2004 (d) 1.16%(b) 2.92%(b) 1.73%(b) 13%
Period Ended April 30, 2004 (e) 1.13%(b) 3.54%(b) (c) 87%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) 0.68%(b) 4.40%(b) 1.39%(b) 32%
Year Ended September 30, 2005 0.68% 4.28% 1.31% 116%
Period Ended September 30, 2004 (d) 0.68%(b) 4.34%(b) 1.13%(b) 13%
Period Ended April 30, 2004 (e) 0.68%(b) 4.37%(b) (c) 87%
* Excludes sales charge.
** During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio
would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from May 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to April
30, 2004.
SEE NOTES TO FINANCIAL STATEMENTS.
20
================================================================================
FINANCIAL HIGHLIGHTS
================================================================================
Tamarack Tax-Free Income Fund
INVESTMENT ACTIVITIES
--------------------------------------
NET REALIZED
AND
NET ASSET UNREALIZED
VALUE, NET GAINS TOTAL FROM
BEGINNING INVESTMENT (LOSSES) ON INVESTMENT
OF PERIOD INCOME INVESTMENTS ACTIVITIES
--------- ---------- ------------ ----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 8.89 0.15 (0.15) -
Year Ended September 30, 2005 9.31 0.30 (0.18) 0.12
Period Ended September 30, 2004 (d) 9.05 0.07 0.26 0.33
Period Ended June 30, 2004 (e) 9.25 0.06 (0.20) (0.14)
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 8.89 0.12 (0.15) (0.03)
Year Ended September 30, 2005 9.31 0.23 (0.18) 0.05
Period Ended September 30, 2004 (d) 9.05 0.06 0.26 0.32
Period Ended June 30, 2004 (e) 9.25 0.05 (0.20) (0.15)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 8.89 0.14 (0.15) (0.01)
Year Ended September 30, 2005 9.31 0.27 (0.18) 0.09
Period Ended September 30, 2004 (d) 9.05 0.07 0.26 0.33
Period Ended June 30, 2004 (e) 9.25 0.06 (0.20) (0.14)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $ 8.89 0.16 (0.15) 0.01
Year Ended September 30, 2005 9.31 0.32 (0.18) 0.14
Period Ended September 30, 2004 (d) 9.05 0.08 0.26 0.34
Year Ended June 30, 2004 (f) 9.57 0.32 (0.40) (0.08)
Year Ended June 30, 2003 9.14 0.35 0.44 0.79
Year Ended June 30, 2002 8.96 0.36 0.18 0.54
Year Ended June 30, 2001 8.62 0.37 0.38 0.75
DISTRIBUTIONS
-------------------------------------
NET ASSET
NET NET VALUE,
INVESTMENT REALIZED TOTAL END OF TOTAL
INCOME GAINS DISTRIBUTIONS PERIOD RETURN*
---------- -------- ------------- --------- -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) (0.15) (0.06) (0.21) $ 8.68 0.09%(a)
Year Ended September 30, 2005 (0.30) (0.24) (0.54) 8.89 1.27%
Period Ended September 30, 2004 (d) (0.07) - (0.07) 9.31 3.71%(a)
Period Ended June 30, 2004 (e) (0.06) - (0.06) 9.05 (1.50%)(a)
CLASS C
Six Months Ended March 31, 2006 (Unaudited) (0.12) (0.06) (0.18) $ 8.68 (0.29%)(a)
Year Ended September 30, 2005 (0.23) (0.24) (0.47) 8.89 0.54%
Period Ended September 30, 2004 (d) (0.06) - (0.06) 9.31 3.53%(a)
Period Ended June 30, 2004 (e) (0.05) - (0.05) 9.05 (1.65%)(a)
CLASS R
Six Months Ended March 31, 2006 (Unaudited) (0.14) (0.06) (0.20) $ 8.68 (0.06%)(a)
Year Ended September 30, 2005 (0.27) (0.24) (0.51) 8.89 1.01%
Period Ended September 30, 2004 (d) (0.07) - (0.07) 9.31 3.66%(a)
Period Ended June 30, 2004 (e) (0.06) - (0.06) 9.05 (1.55%)(a)
CLASS S
Six Months Ended March 31, 2006 (Unaudited) (0.16) (0.06) (0.22) $ 8.68 0.21%(a)
Year Ended September 30, 2005 (0.32) (0.24) (0.56) 8.89 1.52%
Period Ended September 30, 2004 (d) (0.08) - (0.08) 9.31 3.78%(a)
Year Ended June 30, 2004 (f) (0.32) (0.12) (0.44) 9.05 (0.87%)
Year Ended June 30, 2003 (0.35) (0.01) (0.36) 9.57 8.82%
Year Ended June 30, 2002 (0.36) - (0.36) 9.14 6.12%
Year Ended June 30, 2001 (0.37) (0.04) (0.41) 8.96 8.89%
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------
RATIO OF NET
RATIO OF INVESTMENT RATIO OF
NET ASSETS, EXPENSES TO INCOME EXPENSES TO
END OF PERIOD AVERAGE TO AVERAGE AVERAGE PORTFOLIO
(000'S) NET ASSETS NET ASSETS NET ASSETS** TURNOVER***
------------- ----------- ------------ ------------ -----------
CLASS A
Six Months Ended March 31, 2006 (Unaudited) $ 70 1.18%(b) 3.48%(b) 2.34%(b) 19%
Year Ended September 30, 2005 171 1.24% 3.29% 2.31% 8%
Period Ended September 30, 2004 (d) 166 1.23%(b) 3.20%(b) 1.82%(b) 2%
Period Ended June 30, 2004 (e) 33 1.24%(b) 3.39%(b) 3.00%(b) 17%
CLASS C
Six Months Ended March 31, 2006 (Unaudited) $ 3 1.89%(b) 2.73%(b) 2.79%(b) 19%
Year Ended September 30, 2005 3 1.96% 2.57% 2.67% 8%
Period Ended September 30, 2004 (d) 3 1.99%(b) 2.54%(b) 2.45%(b) 2%
Period Ended June 30, 2004 (e) 3 1.98%(b) 2.59%(b) 3.16%(b) 17%
CLASS R
Six Months Ended March 31, 2006 (Unaudited) $ 3 1.44%(b) 3.19%(b) 2.33%(b) 19%
Year Ended September 30, 2005 3 1.52% 3.03% 2.23% 8%
Period Ended September 30, 2004 (d) 3 1.49%(b) 3.03%(b) 1.96%(b) 2%
Period Ended June 30, 2004 (e) 3 1.48%(b) 3.09%(b) 2.65%(b) 17%
CLASS S
Six Months Ended March 31, 2006 (Unaudited) $21,153 0.91%(b) 3.73%(b) 1.86%(b) 19%
Year Ended September 30, 2005 23,924 0.99% 3.54% 1.81% 8%
Period Ended September 30, 2004 (d) 27,329 0.99%(b) 3.48%(b) 1.43%(b) 2%
Year Ended June 30, 2004 (f) 28,186 0.99% 3.47% 1.35% 17%
Year Ended June 30, 2003 39,045 0.99% 3.73% 1.04% 15%
Year Ended June 30, 2002 36,435 0.99% 3.96% (c) 12%
Year Ended June 30, 2001 34,856 1.00% 4.19% (c) 27%
* Excludes sales charge.
** During the period, certain fees were contractually or voluntarily reduced.
If such contractual/voluntary fee reductions had not occurred, the ratio
would have been as indicated.
*** Portfolio turnover is calculated on the basis of the fund as a whole
without distinguishing between the classes of shares issued.
(a) Not annualized.
(b) Annualized.
(c) There were no waivers or reimbursements during the period.
(d) For the period from July 1, 2004 to September 30, 2004.
(e) For the period from April 19, 2004 (commencement of operations) to June 30,
2004.
(f) The existing class of shares was designated Class S shares as of April 19,
2004.
SEE NOTES TO FINANCIAL STATEMENTS.
21
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
March 31, 2006 (Unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION
Tamarack Funds Trust ("Tamarack") is registered under the Investment Company
Act of 1940 (as amended) as an open-end management investment company. Tamarack
was organized as a Delaware statutory trust on December 16, 2003. Predecessor
funds to Tamarack were reorganized as portfolios of Tamarack effective April
16, 2004. This semi-annual report includes the following three investment
portfolios ("Funds"):
- - Tamarack Government Income Fund ("Government Income Fund")
- - Tamarack Quality Fixed Income Fund ("Quality Fixed Income Fund")
- - Tamarack Tax-Free Income Fund ("Tax-Free Income Fund")
The Government Income and Quality Fixed Income Funds offer five share classes:
Class A, Class C, Class R, Class I, and Class S shares. The Tax-Free Income
Fund offers four share classes: Class A, Class C, Class R and Class S shares.
Class A shares are offered with a 3.75% maximum front-end sales charge and a
1.00% contingent deferred sales charge ("CDSC") for redemption within 12 months
of a $1 million or greater purchase. Class C shares are offered at net asset
value (i.e. no front-end sales charge), but are subject to a CDSC of 1.00% for
redemptions within 12 months of purchase. Class R shares (available to certain
401(k) and other employer-sponsored retirement plans) are not subject to either
a front-end sales charge or a CDSC. Class I shares (intended for investors
meeting certain investment minimum thresholds) and Class S shares (available
through certain fee-based programs of broker-dealers or registered investment
advisers) are not subject to either a front-end sales charge or a CDSC.
Voyageur Asset Management, Inc. ("Voyageur") acts as the investment advisor for
Tamarack. The officers of Tamarack ("Fund Management") are also employees of
Voyageur or its affiliates.
- --------------------------------------------------------------------------------
2. SIGNIFICANT ACCOUNTING POLICIES
Summarized below are the significant accounting policies of the Funds. These
policies conform to accounting principles generally accepted in the United
States of America ("GAAP"). Fund management follows these policies when
preparing financial statements. Management may also be required to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts of
income and expenses for the period. Actual results could differ from those
estimates.
SECURITY VALUATION:
Bonds and other fixed income securities are generally valued on the basis of
market prices furnished by pricing services approved by Tamarack's Board of
Trustees (the "Board"). The pricing services utilize both dealer-supplied
valuations and electronic data processing techniques that take into account
appropriate factors such as institutional-size trading in similar groups of
securities, yield, quality, coupon rate, maturity, type of issue and trading
characteristics other than market data and without exclusive reliance upon
quoted prices of exchanges or over-the-counter prices, since these valuations
are believed to reflect more accurately the fair value of such securities.
Short-term debt obligations with less than 60 days to maturity at time of
purchase are valued at amortized cost, which approximates market value, unless
Fund Management determines that amortized cost no longer approximates market
value due to credit or other impairments of the issuer. In such cases where a
security price is unavailable from a
22
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
pricing service, the Board has approved pricing and valuation procedures to
determine a security's fair value. Investments in open-end investment companies
are valued at net asset value.
INVESTMENT TRANSACTIONS AND INCOME:
Investment transactions are recorded one business day after trade date, except
for on the last day of each fiscal quarter end, when they are recorded on trade
date. Dividend income is recorded on the ex-dividend date. Securities gains and
losses are calculated based on the costs of the specific security (also known
as identified cost basis). Interest income is recognized on the accrual basis
and includes, where applicable, the amortization and accretion of premium or
discount. Principal repayment of mortgage and asset-backed securities are
included in the financial statements as interest income. Interest income on
U.S. Treasury inflation indexed securities is accrued daily based upon the
inflation adjusted principal. Additionally, any increase in the principal or
face amount of the securities adjusted for inflation is recorded as interest
income.
EXPENSE, INVESTMENT INCOME AND GAIN/LOSS ALLOCATION:
Each Fund pays the expenses that are directly related to its operations, such
as trading costs or portfolio management fees. Expenses incurred by Tamarack on
behalf of multiple Funds, such as trustee or legal fees, are allocated among
each of the Funds either proportionately based upon each Fund's relative net
assets or using another reasonable basis such as equally across all Funds,
depending on the nature of the expense. Individual share classes within a Fund
are charged expenses specific to that class, such as sales and distribution
fees. Within a Fund, expenses other than class specific expenses are allocated
daily to each class based upon the proportion of relative net assets.
Investment income and realized and unrealized gains or losses are allocated to
each class of shares based on relative net assets.
FINANCIAL INSTRUMENTS:
The Funds may engage in when-issued transactions. A Fund would record
when-issued securities on the actual trade date and maintain sufficient
liquidity so that cash will be available to make payment for the securities
purchased. Securities purchased on a when-issued basis are valued daily
beginning on the trade date. Securities purchased on a when-issued basis begin
earning interest on the settlement date.
DISTRIBUTIONS TO SHAREHOLDERS:
Each Fund pays out any income that it receives, less expenses, in the form of
dividends to its shareholders. Income dividends are declared daily and paid
monthly. Dividends will also be paid at any time during the month upon total
redemption of shares in an account. Capital gains are declared and paid at
least annually. Distributions to shareholders are recorded on the ex-dividend
date. The amount of dividends and distributions are calculated based on federal
income tax regulations, which may differ from GAAP. These "book/tax"
differences may be either temporary or permanent in nature. To the extent these
differences are permanent (e.g. expiring capital loss carryforward and foreign
currency transactions), they are reclassified within a Fund's capital accounts
based on their federal tax basis treatment. Such differences are not reflected
in the calculation of the financial highlights.
23
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
SECURITIES LENDING:
The Funds may lend their portfolio securities to brokers, dealers and financial
institutions, provided: (1) the loan is secured continuously by collateral
consisting of U.S. Government securities, cash or letters of credit maintained
on a daily mark-to-market basis in an amount at least equal to 100% of the
current market value of the securities loaned; (2) the Funds may at any time
call the loan and obtain the return of the securities loaned within five
business days; (3) the Funds will receive any interest or dividends paid on the
loaned securities; and (4) the aggregate market value of securities loaned will
not at any time exceed 331|M/3% of the total assets of a particular Fund.
The Funds will earn income for lending their securities from fees paid by
borrowers and from the investment of cash collateral. The Funds will then pay
the lending agent (Wells Fargo Bank) a percentage of the lending income.
Securities lending income is presented net of such payments to the lending
agent in the financial statements. Loans of securities involve a risk that the
borrower may fail to return the securities or may fail to provide additional
collateral. In the event that a borrower fails to return the lent security, the
lending agent will indemnify the Funds based on the difference in value between
the closing market value of the security on the date it should have been
returned and the value of the cash collateral. The Funds assume all risk of
loss from a decline in the market value of the collateral investment and any
resulting collateral deficiencies. In an effort to reduce these risks, Voyageur
and Wells Fargo Bank will monitor the creditworthiness of the firms to which
the Funds lend securities.
The following summarizes the market value of securities that were on loan to
brokers and the value of securities and cash held as collateral for these loans
as of March 31, 2006.
Value of Value of
Securities Loaned Collateral
------------------- ------------
Government Income Fund $ 657,619 $ 674,016
Quality Fixed Income Fund 9,523,734 9,753,015
See page 42, Notes to Schedules of Portfolio Investments for a detailed
breakdown of the investments purchased with the collateral received.
- --------------------------------------------------------------------------------
3. AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
Tamarack, on behalf of the Funds, has entered into investment advisory
agreements with Voyageur, under which Voyageur manages each Fund's assets and
furnishes related office facilities, equipment, research and personnel. The
agreements require each Fund to pay Voyageur a monthly fee based upon average
daily net assets. Under the terms of the advisory contracts, Voyageur is
entitled to receive fees based on a percentage of the average daily net assets
of each of the Funds as follows:
Annual Rate
------------
Government Income Fund 0.30%*
Quality Fixed Income Fund 0.60%
Tax-Free Income Fund 0.85%
*Voyageur has voluntarily agreed to waive the advisory fee of 0.30% for the
Government Income Fund effective November 1, 2005.
Effective January 28, 2006, Voyageur has contractually agreed to waive fees
and/or to make payments in order to keep total operating expenses of the Class
S and Class I shares of Government Income Fund, Quality Fixed Income Fund and
Tax-Free Income
24
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
Fund to 0.85%, 0.68% and 0.74%, respectively. Class A, C and R Shares vary from
these limits only by the addition of class specific 12b-1 fees. These expense
limitation agreements are in place until January 31, 2007. Voyageur may also
voluntarily waive and/or reimburse operating expenses of any Fund from time to
time. Any such voluntary program may be changed or eliminated at any time
without notice. The prior expense limitation agreement for Tax-Free Income Fund
was superseded by a new expense limitation agreement effective on January 28,
2006. The expense ratio for the period ended March 31, 2006 for this Fund, as
reflected in the Financial Highlights, is a blended rate based on the prior
agreement and the expense limitation agreement currently in place as described
above.
Voyageur serves as administrator to the Funds and BISYS Fund Services Ohio,
Inc. ("BISYS") serves as sub-administrator. Services provided under the
administrative services contract includes providing day-to-day administration
of matters related to the Funds, maintenance of their records and the
preparation of reports. Under the terms of the administrative services
contract, Voyageur receives from each Fund a fee, payable monthly, at the
annual rate of 0.10% of the Fund's average daily net assets. For its services
as sub-administrator, BISYS receives a fee payable by Voyageur out of
Voyageur's own resources.
- --------------------------------------------------------------------------------
4. FUND DISTRIBUTION
Each of the Funds has adopted a Master Distribution 12b-1 Plan (the "Plan") in
which Tamarack Distributors Inc. (the "Distributor") acts as the Funds'
distributor. The Distributor is an affiliate of Voyageur. The Plan permits each
Fund to make payments for, or to reimburse the Distributor monthly for,
distribution-related costs and expenses of marketing shares of each share class
covered under the Plan, and/or for providing shareholder services. The following
chart shows the current Plan fee rate for each class.
Class A Class B Class R
------- ------- -------
12b-1 Plan Fee 0.25%* 1.00% 0.50%
Plan fees are based on average annual daily net assets of the applicable class.
The Distributor, subject to applicable legal requirements, may waive a Plan fee
voluntarily, in whole or in part.
*The maximum Plan fee rate for Class A shares is 0.50%. The Distributor is
contractually waiving 0.25% of the total 0.50% Plan fee for Class A through
January 31, 2007.
For the period ended March 31, 2006, the Distributor received commissions of
$739 from front-end sales charges of Class A shares of the Funds, of which
there were no commissions paid to affiliated broker-dealers. The Distributor
received no CDSC from Class C shares of the Funds during the period ended March
31, 2006.
- --------------------------------------------------------------------------------
5. SECURITIES TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding
securities maturing less than one year from acquisition) for the period ended
March 31, 2006 were as follows:
Purchases Sales Purchases Sales of
(Excl. U.S. Govt.) (Excl. U.S. Govt.) of U.S. Govt. U.S. Govt.
------------------ ------------------ ------------- ----------
Government Income Fund $ 50,686 $ 939,089 $ 2,416,630 $ 3,221,281
Quality Fixed Income Fund 10,490,336 11,896,858 12,621,987 19,305,187
Tax-Free Income Fund 4,171,804 6,850,668 -- --
- --------------------------------------------------------------------------------
25
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
6. CAPITAL SHARE TRANSACTIONS
Tamarack is authorized to issue an unlimited number of shares of beneficial
interest ("shares outstanding") without par value. Transactions in shares of
the Funds are summarized below:
26
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK GOVERNMENT INCOME FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 418,239 $ 1,681,558
Dividends reinvested 64,939 214,010
Cost of shares redeemed (1,828,956) (3,477,217)
------------ ------------
Change in Class A $ (1,345,778) $ (1,581,649)
------------ ------------
CLASS I
Proceeds from shares issued $ 14,436 $ 305,611
Dividends reinvested 36,755 289,938
Cost of shares redeemed (619,420) (11,518,546)
------------ ------------
Change in Class I $ (568,229) $(10,922,997)
------------ ------------
CLASS C
Proceeds from shares issued $ - $ -
Dividends reinvested 46 99
Cost of shares redeemed - -
------------ ------------
Change in Class C $ 46 $ 99
------------ ------------
CLASS R
Proceeds from shares issued $ 235 $ 2,673
Dividends reinvested 159 929
Cost of shares redeemed (1,369) (19,871)
------------ ------------
Change in Class R $ (975) $ (16,269)
------------ ------------
CLASS S
Proceeds from shares issued $ 141,274 $ 14,275
Dividends reinvested 2,255 592
Cost of shares redeemed (1,617) (2,004)
------------ ------------
Change in Class S $ 141,912 $ 12,863
------------ ------------
Change in net assets from capital transactions $ (1,773,024) $(12,507,953)
------------ ------------
SHARE TRANACTIONS:
CLASS A
Issued 41,535 163,647
Reinvested 6,453 20,815
Redeemed (181,675) (338,935)
------------ ------------
Change in Class A (133,687) (154,473)
------------ ------------
CLASS I
Issued 1,404 29,842
Reinvested 3,655 28,195
Redeemed (61,735) (1,120,168)
------------ ------------
Change in Class I (56,676) (1,062,131)
------------ ------------
CLASS C
Issued - -
Reinvested 5 9
Redeemed - -
------------ ------------
Change in Class C 5 9
------------ ------------
CLASS R
Issued 23 260
Reinvested 16 90
Redeemed (136) (1,950)
------------ ------------
Change in Class R (97) (1,600)
------------ ------------
CLASS S
Issued 13,975 1,374
Reinvested 225 58
Redeemed (162) (198)
------------ ------------
Change in Class S 14,038 1,234
------------ ------------
Change in shares from capital transactions (176,417) (1,216,961)
------------ ------------
27
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK QUALITY FIXED INCOME FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ 96,231 $ 390,049
Dividends reinvested 21,065 43,775
Cost of shares redeemed (266,492) (483,520)
------------ ------------
Change in Class A $ (149,196) $ (49,696)
------------ ------------
CLASS I
Proceeds from shares issued $ 627 $ 734,963
Dividends reinvested 26,638 216,194
Cost of shares redeemed (1,239,034) (17,354,137)
------------ ------------
Change in Class I $ (1,211,769) $(16,402,980)
------------ ------------
CLASS C
Proceeds from shares issued $ - $ -
Dividends reinvested 60 115
Cost of shares redeemed - -
------------ ------------
Change in Class C $ 60 $ 115
------------ ------------
CLASS R
Proceeds from shares issued $ 237 $ 2,141
Dividends reinvested 157 786
Cost of shares redeemed (2,083) (14,245)
------------ ------------
Change in Class R $ (1,689) $ (11,318)
------------ ------------
CLASS S
Proceeds from shares issued $ 547,566 $ 2,438,382
Dividends reinvested 1,364,599 3,099,704
Cost of shares redeemed (9,152,613) (20,271,341)
------------ ------------
Change in Class S $ (7,240,448) $(14,733,255)
------------ ------------
Change in net assets from capital transactions $ (8,603,042) $(31,197,134)
============ ============
SHARE TRANACTIONS:
CLASS A
Issued 10,132 40,163
Reinvested 2,209 4,501
Redeemed (27,914) (49,667)
------------ ------------
Change in Class A (15,573) (5,003)
------------ ------------
CLASS I
Issued 65 75,742
Reinvested 2,791 22,211
Redeemed (130,253) (1,780,428)
------------ ------------
Change in Class I (127,397) (1,682,475)
------------ ------------
CLASS C
Issued - -
Reinvested 6 12
Redeemed - -
------------ ------------
Change in Class C 6 12
------------ ------------
CLASS R
Issued 26 220
Reinvested 16 81
Redeemed (219) (1,473)
------------ ------------
Change in Class R (177) (1,172)
------------ ------------
CLASS S
Issued 57,415 250,974
Reinvested 143,093 318,628
Redeemed (962,403) (2,085,054)
------------ ------------
Change in Class S (761,895) (1,515,452)
------------ ------------
Change in shares from capital transactions (905,036) (3,204,090)
============ ============
28
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
TAMARACK TAX-FREE INCOME FUND
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
MARCH 31, SEPTEMBER 30,
2006 2005
---------------- -------------
(UNAUDITED)
CAPITAL TRANSACTIONS:
CLASS A
Proceeds from shares issued $ - $ 22,725
Dividends reinvested 1,647 3,345
Cost of shares redeemed (99,930) (13,557)
----------- -----------
Change in Class A $ (98,283) $ 12,513
----------- -----------
CLASS C
Proceeds from shares issued $ - $ -
Dividends reinvested 65 170
Cost of shares redeemed - -
----------- -----------
Change in Class C $ 65 $ 170
----------- -----------
CLASS R
Proceeds from shares issued $ - $ -
Dividends reinvested 74 186
Cost of shares redeemed - -
----------- -----------
Change in Class R $ 74 $ 186
----------- -----------
CLASS S
Proceeds from shares issued $ 452,051 $ 687,279
Dividends reinvested 402,914 1,098,770
Cost of shares redeemed (3,092,462) (3,996,155)
----------- -----------
Change in Class S $(2,237,497) $(2,210,106)
----------- -----------
Change in net assets from capital transactions $(2,335,641) $(2,197,237)
=========== ===========
SHARE TRANACTIONS:
CLASS A
Issued - 2,506
Reinvested 187 369
Redeemed (11,377) (1,491)
----------- -----------
Change in Class A (11,190) 1,384
----------- -----------
CLASS C
Issued - -
Reinvested 8 19
Redeemed - -
----------- -----------
Change in Class C 8 19
----------- -----------
CLASS R
Issued - -
Reinvested 8 21
Redeemed - -
----------- -----------
Change in Class R 8 21
----------- -----------
CLASS S
Issued 51,384 76,142
Reinvested 45,806 121,162
Redeemed (351,954) (441,216)
----------- -----------
Change in Class S (254,764) (243,912)
----------- -----------
Change in shares from capital transactions (265,938) (242,488)
=========== ===========
29
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
- --------------------------------------------------------------------------------
7. FEDERAL INCOME TAXES
It is the policy of each Fund to qualify as a regulated investment company by
complying with the provisions applicable to certain investment companies, as
defined under Subchapter M of the Internal Revenue Code, and to distribute
substantially all of its net investment income and net realized capital gains.
Therefore, no federal tax liability is recorded in the financial statements of
each Fund. Effective as of the taxable year ended September 30, 2004, each of
the Funds changed its annual tax period to September 30th.
The tax cost of securities differ from financial reporting cost by the amount
of losses recognized for financial reporting purposes in excess of those
allowed to be recognized for federal income tax purposes. As of March 31, 2006,
the tax cost of securities and the breakdown of unrealized appreciation
(depreciation) for each Fund were as follows:
Net Unrealized
Tax Cost Unrealized Unrealized Appreciation
of Securities Appreciation Depreciation (Depreciation)
------------- ------------ ------------ --------------
Government Income Fund $ 5,495,375 $ 230 $ (137,918) $ (137,688)
Quality Fixed Income Fund 68,683,245 153,564 (1,859,010) (1,705,446)
Tax-Free Income Fund 20,472,817 788,317 (50,775) 737,542
The tax character of distributions during the fiscal year ended September 30,
2005 was as follows:
Distributions Paid From
------------------------------
Net Total
Investment Net Long-Term Total Taxable Tax Exempt Distributions
Income Capital Gains Distributions Distributions Paid
---------- ------------- ------------- ------------- -------------
Government Income Fund $ 426,522 $ 146,541 $ 573,063 $ - $ 573,063
Quality Fixed Income Fund 4,024,808 - 4,024,808 - 4,024,808
Tax-Free Income Fund 42,680 681,258 723,938 874,458 1,598,396
As of September 30, 2005 the components of accumulated earnings/(deficit) on a
tax basis were as follows:
Undist. Undist. Accum. Total
Undist. Tax Long-Term Capital and Unrealized Accum.
Ordinary Exempt Capital Accum. Dist. Other Appreciation/ Earnings/
Income Income Gains Earnings Payable Losses (Depreciation) (Deficits)
-------- ------- --------- -------- ------- ----------- -------------- ----------
Government
Income Fund $ 65,371 $ - $ - $ 65,371 $ (19,860) $ (386,903) $ (84,880) $ (426,272)
Quality Fixed
Income Fund 188,295 - - 188,295 (275,031) (2,418,341) (362,417) (2,867,494)
Tax-Free
Income Fund - 72,330 122,962 195,292 (72,306) - 1,421,533 1,544,519
As of September 30, 2005, the following additional information is available
regarding capital losses:
The following Funds had net capital loss carryforwards to offset future net
capital gains, if any:
Capital Loss Carryforward Expires
------------------------- -------
Government Income Fund $ 84,332 2012
2,532 2013
Quality Fixed Income Fund 484,754 2012
As of September 30, 2005, the following Fund had net capital loss
carryforwards, subject to certain limitations on availability, to offset future
net capital gains, if any, as a
30
================================================================================
NOTES TO FINANCIAL STATEMENTS
================================================================================
successor of a merger. To the extent that these carryovers are used to offset
future capital gains, it is probable that the gains will not be distributed to
shareholders:
Capital Loss Carryforward Expires
------------------------- -------
Quality Fixed Income Fund $ 1,604 2009
702,251 2010
1,229,732 2011
As of September 30, 2005, the following Fund had deferred post-October capital
losses to offset future net capital gains or net investment income, if any:
Deferred Post-October
Capital Losses
----------------------
Government Income Fund $300,039
- --------------------------------------------------------------------------------
8. MARKET TIMING
Tamarack strongly discourages attempts at market timing by Fund shareholders.
Each Fund charges a redemption fee of 2% of the value of the shares redeemed or
exchanged within 30 days of purchase, in addition to limiting the number of
exchanges that may be made between Funds to five (5) per calendar year. When
assessed, the redemption fee is deducted from the redemption proceeds and
retained by the Fund, not by Voyageur. This redemption fee is not charged in
cases where, for example, the redemption results from an automatic reinvestment
or asset re-allocation not specifically directed by the shareholder. Tamarack
also reserves the right to reject any Fund purchase order made by persons deemed
to be market timers. The Funds' prospectus contains a full description of
Tamarack's policies on market timing and/or excessive trading. For purposes of
the Financial Highlights, the impact of redemption fees paid to the Funds was
less than $0.01 per share. During the period ended March 31, 2006 the redemption
fees collected by each Fund were as follows:
Amounts
-------
Government Income Fund $982
Quality Fixed Income Fund 104
31
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Government Income Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 1.78%
CALIFORNIA - 0.78%
$ 40,000 Rialto Redevelopment $ 39,391
Agency Tax Allocation, ------------
Series C, 4.60%,
9/1/08, (XLCA Insured)
PENNSYLVANIA - 1.00%
50,000 Pittsburgh Taxable 50,364
Pension, Series A, ------------
6.10%, 3/1/07
TOTAL MUNICIPAL BONDS 89,755
(Cost $90,635) ------------
ASSET BACKED SECURITIES - 1.11%
BANKING & FINANCIAL SERVICES - 1.11%
53,414 Countrywide Home 53,547
Equity Loan Trust, Series
2004-G, Class 2A,
4.97%, 12/15/29 (b)
2,681 Residential Asset 2,680
Securities Corp., Series ------------
2004-KS11, Class AI1,
4.96%, 8/25/25 (b)
TOTAL ASSET BACKED SECURITIES 56,227
(Cost $55,998) ------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 4.50%
BANKING & FINANCIAL SERVICES - 4.50%
151,910 Bank of America 147,245
Mortgage Securities,
Series 2004-F, Class
2A7, 4.15%, 7/25/34
(b)
82,580 Countrywide Alternative 79,885
Loan Trust, Series ------------
2004-12CB, Class 1A1,
5.00%, 7/25/19
TOTAL COLLATERALIZED MORTGAGE 227,130
OBLIGATIONS ------------
(Cost $235,207)
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 68.35%
FANNIE MAE - 48.11%
340,000 4.25%, 7/15/07 336,339
150,000 4.50%, 10/15/08 148,037
17,923 4.37%, 9/25/10 17,363
85,684 4.41%, 3/1/11 (b) 82,142
246,119 4.63%, 12/1/11 (b) 240,717
173,000 5.76%, 12/25/11 177,041
119,000 4.89%, 4/1/12 (b) 116,803
51,870 3.81%, 11/25/12 (b) 49,452
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
$ 98,425 4.50%, 10/1/13 $ 94,934
29,793 4.50%, 11/1/14 28,660
38,491 4.98%, 11/25/32 (b) 37,753
177,004 4.62%, 7/1/33 (b) 169,312
123,360 4.18%, 9/1/33 (b) 121,374
95,586 4.33%, 1/1/34 (b) 94,374
126,536 4.26%, 3/1/34 (b) 123,224
116,521 4.01%, 6/1/34 (b) 113,865
161,280 5.06%, 12/1/34 (b) 158,473
155,351 4.16%, 1/1/35 (b) 151,283
65,000 5.41%, 5/25/35 61,653
49,215 4.25%, 8/25/43 48,663
57,000 4.61%, 8/25/43 56,277
------------
2,427,739
------------
FEDERAL HOME LOAN BANK - 7.03%
110,000 3.00%, 4/15/09 103,489
110,000 3.88%, 1/15/10 105,249
150,727 4.84%, 2/1/13 (b) 145,895
------------
354,633
------------
FEDERAL HOME LOAN MORTGAGE
CORPORATION - 1.37%
70,000 5.40%, 3/25/44 (b) 69,236
------------
SMALL BUSINESS ADMINISTRATION - 11.84%
4,983 4.95%, 5/25/13 (b) 4,960
127,327 4.88%, 9/10/13 122,775
105,552 4.64%, 2/10/15 100,813
860 4.95%, 11/25/17 (b) 856
58,773 4.86%, 1/1/25 56,361
113,430 4.63%, 2/1/25 106,985
40,208 4.84%, 5/1/25 38,464
948 4.88%, 3/25/30 (b) 943
121,659 4.90%, 5/25/30 (b) 121,153
44,384 4.86%, 7/25/30 (b) 44,144
------------
597,454
------------
TOTAL U.S. GOVERNMENT AGENCY 3,449,062
OBLIGATIONS
(Cost $3,548,906)
U.S. TREASURY INFLATION PROTECTION
BONDS - 8.29%
251,000 1.88%, 7/15/13 (c) 263,158
151,000 2.00%, 7/15/14 (c) 154,926
------------
TOTAL U.S. TREASURY INFLATION 418,084
PROTECTION BONDS
(Cost $428,825)
U.S. TREASURY NOTES - 15.08%
200,000 3.63%, 6/30/07 (c) 196,984
363,000 3.50%, 2/15/10 (c) 346,041
32
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Government Income Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
$ 130,000 4.13%, 5/15/15 (c) $ 122,845
100,000 4.25%, 8/15/15 (c) 95,262
------------
TOTAL U.S. TREASURY NOTES 761,132
(Cost $776,015)
INVESTMENT COMPANIES - 7.06%
201,621 Wells Fargo 100% 201,621
Treasury Money Market
Fund
154,676 Wells Fargo 154,676
Government ------------
Institutional Money
Market Fund
TOTAL INVESTMENT COMPANIES 356,297
(Cost $356,297) ------------
INVESTMENT OF CASH COLLATERAL FOR SECURITIES ON
LOAN - 13.36%
$674,016 Various Securities (see 674,016
Notes to Schedules of ------------
Portfolio Investments
for collateral
information)
TOTAL INVESTMENT OF CASH COLLATERAL 674,016
FOR SECURITIES ON LOAN ------------
(Cost $674,016)
TOTAL INVESTMENTS 6,031,703
(Cost $6,165,899) (a) - 119.53% ------------
LIABILITIES IN EXCESS OF OTHER (985,589)
ASSETS - (19.53)% ------------
NET ASSETS - 100.00% $ 5,046,114
============
(a) See Note 7 for tax cost of securities and the breakdown of unrealized
appreciation (depreciation).
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on March 31, 2006. The maturity date
represents the actual maturity date.
(c) All or part of this security has been loaned as of March 31, 2006.
Abbreviations used are defined below:
XLCA - XL Capital Insurance
SEE NOTES TO FINANCIAL STATEMENTS.
33
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Quality Fixed Income Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 4.54%
ARIZONA - 0.29%
$ 100,000 Tucson Certificate of $ 95,692
Participation, 4.30%,
7/1/10, (MBIA Insured)
105,000 Tucson Certificate of 100,551
Participation, 4.55%, ------------
7/1/11, (MBIA Insured)
196,243
------------
CALIFORNIA - 1.15%
370,000 Alameda County 304,406
Pension Obligation,
Series B, 0.00%,
12/1/09, (MBIA Insured)
355,000 Los Angeles Community 339,266
Redevelopment Agency,
5.90%, 9/1/35, (Radian
Insured)
135,000 San Diego Metro 128,781
Transportation ------------
Development Board,
3.86%, 12/1/09, (MBIA
Insured)
772,453
------------
INDIANA - 0.31%
210,000 State Bond Bank 203,885
Revenue, 5.26%, ------------
7/15/18, (FGIC Insured)
KENTUCKY - 0.53%
350,000 State Higher Education 350,000
Student Loan Corp. ------------
Revenue, Series A-2,
4.72%, 5/1/28,
(Guaranteed by Student
Loans) (b)
MICHIGAN - 0.46%
315,000 Detroit Certificate of 305,141
Participation, 4.23%, ------------
6/15/09, (XLCA Insured)
NEW JERSEY - 0.29%
195,000 New Jersey Economic 191,422
Development Authority ------------
Revenue, Series B,
5.18%, 11/1/15
SOUTH CAROLINA - 0.95%
660,000 Medical University of 636,405
South Carolina Hospital ------------
Authority Facilities
Revenue, 5.23%,
8/15/17, (MBIA Insured)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
TEXAS - 0.56%
$ 390,000 San Antonio $ 371,693
Convention Center ------------
Hotel Finance Corp.
Contract Revenue,
5.10%, 7/15/20,
(AMBAC Insured)
TOTAL MUNICIPAL BONDS 3,027,242
(Cost $3,129,218) ------------
ASSET BACKED SECURITIES - 0.59%
BANKING & FINANCIAL SERVICES - 0.59%
129,719 Countrywide Home 130,044
Equity Loan Trust, Series
2004-G, Class 2A,
4.97%, 12/15/29 (b)
10,939 New Century Home 10,892
Equity Loan Trust, Series
1997-NC5, Class A6,
6.70%, 10/25/28 (b)
256,342 Vanderbilt Mortgage 254,334
Finance, Series 2002-C, ------------
Class A2, 4.23%,
2/7/15
TOTAL ASSET BACKED SECURITIES 395,270
(Cost $396,764) ------------
COLLATERALIZED MORTGAGE OBLIGATIONS - 15.38%
BANKING & FINANCIAL SERVICES - 15.38%
641,949 Banc of America 643,067
Mortgage Securities,
Series 2006-A, Class
2A1, 5.45%,
2/25/36 (b)
774,741 Bank of America 750,952
Mortgage Securities,
Series 2004-F, Class
2A7, 4.15%,
7/25/34 (b)
613,692 Bear Sterns Adjustable 601,236
Rate Mortgage Trust,
Series 2003-9, Class
3A2, 4.98%,
2/25/34 (b)
101,760 Citigroup Mortgage 99,360
Loan Trust, Inc., Series
2005-3, Class 2A2A,
4.70%, 8/25/35
1,672,248 Countrywide Alternative 1,617,671
Loan Trust, Series
2004-12CB, Class 1A1,
5.00%, 7/25/19
884,000 Countrywide Alternative 849,394
Loan Trust, Series
2005-4, Class 1A5,
4.97%, 5/25/34 (b)
34
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Quality Fixed Income Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
$ 561,090 Countrywide Alternative $ 554,702
Loan Trust, Series
2005-73CB, Class 1A1,
5.50%, 1/25/36
390,000 Countrywide Alternative 393,687
Loan Trust, Series
2006-9T1, Class A7,
6.00%, 5/25/36
623,241 GSR Mortgage Loan 608,506
Trust, Series 2005-AR7,
Class 2A1, 4.56%,
11/25/35 (b)
480,000 Homebanc Mortgage 479,775
Trust, Series 2006-1,
Class 3A2, 5.92%,
4/25/37 (b)
293,418 JP Morgan Mortgage 283,253
Trust, Series 2004-A4,
Class 2A2, 4.63%,
9/25/34 (b)
1,106,844 Merrill Lynch Mortgage 1,082,250
Investors, Inc., Series
2005-A1, Class 2A1,
4.59%, 12/25/34 (b)
15,286 Morgan Stanley 15,385
Mortgage Loan Trust,
Series 2004-2AR, Class
1A, 5.26%, 2/25/34 (b)
85,607 Structured Asset 85,368
Securities Corp., Series
2002-11A, Class 2A1,
5.60%, 6/25/32
507,824 Structured Asset 489,669
Securities Corp., Series
2003-30, Class 1A1,
5.50%, 10/25/33
210,266 Vendee Mortgage Trust, 220,967
Series 1992-1, Class 2Z,
7.75%, 5/15/22
911,547 Washington Mutual, 858,995
Inc., Series 2003-S11,
Class 1A, 5.00%,
11/25/33
615,000 Washington Mutual, 609,249
Inc., Series 2005-8, ------------
Class 1A8, 5.50%,
10/25/35
TOTAL COLLATERALIZED MORTGAGE 10,243,486
OBLIGATIONS ------------
(Cost $10,469,320)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
COMMERCIAL MORTGAGE BACKED
SECURITIES - 4.42%
BANKING & FINANCIAL SERVICES - 4.42%
$ 444,542 ABN Amro Mortgage $ 423,801
Corp., Series 2003-12,
Class 1A, 5.00%,
12/25/33
395,724 GE Capital Commercial 394,753
Mortgage Corp., Series
2002-1A, Class A1,
5.03%, 12/10/35
899,688 JP Morgan Commercial 919,589
Mortgage Finance
Corp., Series 1999-C7,
Class A2, 6.51%,
10/15/35
500,000 LB-UBS Commercial 462,202
Mortgage Trust, Series
2004-C2, Class A4,
4.37%, 3/1/36
786,450 Master Asset 745,940
Securitization Trust, ------------
Series 2003-12, Class
6A1, 5.00%, 12/25/33
TOTAL COMMERCIAL MORTGAGE BACKED 2,946,285
SECURITIES ------------
(Cost $3,017,521)
CORPORATE BONDS - 29.13%
AEROSPACE & DEFENSE - 0.78%
150,000 DRS Technologies, Inc., 149,250
6.63%, 2/1/16
308,000 McDonnell Douglas 372,451
Corp., 9.75%, 4/1/12 ------------
521,701
------------
AUTOMOTIVE - 0.26%
173,000 DaimlerChrysler NA 173,658
Holdings, 5.21%, ------------
10/31/08 (b)
BANKING & FINANCIAL SERVICES - 4.16%
500,000 AIG SunAmerica, Inc., 505,357
MTN, 5.75%, 2/16/09
179,000 Frost National Bank, 189,132
6.88%, 8/1/11
300,000 Jefferies Group, Inc., 307,111
7.50%, 8/15/07
236,000 JP Morgan Chase & 248,084
Co., 6.63%, 3/15/12
319,000 NB Capital Trust III, 307,116
5.15%, 1/15/27 (b)
430,000 North Fork Bancorp., 426,933
5.00%, 8/15/12
35
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Quality Fixed Income Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
$ 435,000 Rabobank Capital II, $ 418,115
5.26%, 12/29/49 (d)
374,000 Wachovia Capital Trust 360,009
II, 5.10%, 1/15/27 (b) ------------
2,761,857
------------
BEVERAGES - WINE/SPIRITS - 0.34%
229,000 Diageo Finance, 5.50%, 227,034
4/1/13 ------------
BUILDING & CONSTRUCTION - 2.17%
324,000 Dycom Industries, Inc., 333,720
8.13%, 10/15/15
360,000 KB Home, 5.75%, 329,109
2/1/14
256,552 Lennar Corp., 5.68%, 258,283
3/19/09 (b)
225,000 Pulte Homes, Inc., 243,064
7.88%, 8/1/11
268,000 Texas Industries, Inc., 276,040
7.25%, 7/15/13 ------------
1,440,216
------------
CABLE - 1.34%
300,000 Echostar DBS Corp., 297,000
5.75%, 10/1/08
293,000 Rogers Cable, Inc., 313,510
7.88%, 5/1/12
242,000 TCI Communications, 285,177
Inc., 9.80%, 2/1/12 ------------
895,687
------------
CHEMICAL - 1.88%
315,000 Air Products & 319,694
Chemicals, MTN,
6.65%, 8/1/07
341,000 Equistar Chemical LP, 362,312
10.13%, 9/1/08 (c)
300,000 MacDermid, Inc., 316,500
9.13%, 7/15/11
256,000 Valspar Corp., 6.00%, 256,193
5/1/07 ------------
1,254,699
------------
COMPUTER INDUSTRY - 0.20%
138,000 Fiserv, Inc., 4.00%, 133,278
4/15/08 ------------
CONSUMER GOODS & SERVICES - 1.24%
337,000 Dollar General Corp., 362,275
8.63%, 6/15/10
150,000 Russell Corp., 9.25%, 155,625
5/1/10
302,000 Staples Inc., 7.13%, 308,271
8/15/07 ------------
826,171
------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
ELECTRONICS - 0.57%
$ 109,000 Ametek, Inc., 7.20%, $ 112,158
7/15/08
286,000 Thermo Electron Corp., 269,901
5.00%, 6/1/15 ------------
382,059
------------
ENERGY - 1.92%
100,000 Atlas Pipeline Partners, 104,250
8.13%, 12/15/15 (d)
275,000 Chesapeake Energy 271,563
Corp., 6.50%, 8/15/17
207,000 Forest Oil Corp., 214,763
8.00%, 6/15/08
171,000 Kinder Morgan Energy 182,251
Partners LP, 7.13%,
3/15/12
289,100 Pemex Finance Ltd., 310,206
9.69%, 8/15/09
200,000 Piedmont Natural Gas 198,643
Co., 6.00%, 12/19/33 ------------
1,281,676
------------
ENTERTAINMENT - 0.49%
308,000 Royal Caribbean 329,358
Cruises, 8.00%, ------------
5/15/10
HEALTHCARE - 2.02%
14,025 Aetna, Inc., 355,113
8.50%, 8/31/41
270,000 AmerisourceBergen 265,545
Corp., 5.63%,
9/15/12 (d)
284,000 Evangelical Lutheran 284,053
Good Samaritan, MTN,
5.33%, 11/24/06 (b)
205,000 HCA, Inc., 5.50%, 199,726
12/1/09
246,000 Hospira, Inc., 4.95%, 241,889
6/15/09 ------------
1,346,326
------------
HOTELS & MOTELS - 0.18%
120,000 Starwood Hotels and 122,100
Resorts, 7.38%, 5/1/07
LIFE & HEALTH INSURANCE - 2.73%
300,000 Americo Life, Inc., 302,389
7.88%, 5/1/13 (d)
375,000 ING Capital Funding 416,630
Trust III, 8.44%,
12/31/49
586,000 John Hancock Global 582,359
Funding II, 5.00%,
7/27/07 (d)
36
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Quality Fixed Income Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
$ 255,000 NLV Financial Corp., $ 267,402
7.50%, 8/15/33 (d)
218,000 Transamerica Capital III, 242,708
7.63%, 11/15/37 ------------
1,811,488
------------
MACHINERY - DIVERSIFIED - 0.77%
228,000 IDEX Corp., 6.88%, 231,151
2/15/08
277,000 Westinghouse Air Brake 280,463
Technologies Corp., ------------
6.88%, 7/31/13
511,614
MEDIA - 1.03%
300,000 Media General, Inc., 301,059
6.95%, 9/1/06
255,000 News America 275,248
Holdings, Inc., 7.70%,
10/30/25
92,000 Time Warner Cos., Inc., 110,619
9.15%, 2/1/23 ------------
686,926
------------
PRIVATE CORRECTIONS - 0.27%
174,000 Corrections Corp. of 179,220
America, 7.50%, ------------
5/1/11
PROPERTY & CASUALTY INSURANCE - 1.28%
146,000 Arch Capital Group 156,336
Ltd., 7.35%, 5/1/34
221,000 Selective Insurance 212,751
Group, 6.70%, 11/1/35
210,000 St. Paul Cos., Inc., 214,038
Series B, MTN, 7.19%,
8/2/07
118,000 Unitrin, Inc., 5.75%, 118,185
7/1/07
160,000 Unitrin, Inc., 4.88%, 154,254
11/1/10 ------------
855,564
------------
REAL ESTATE INVESTMENT TRUSTS - 2.85%
178,000 Brandywine Operating 176,394
Partners, 5.63%,
12/15/10
222,000 ERP Operating LP, 233,500
6.63%, 3/15/12
192,000 Federal Realty 211,222
Investment Trust,
8.75%, 12/1/09
134,000 Healthcare Realty Trust, 146,280
8.13%, 5/1/11
250,000 Kimco Realty Corp., 259,016
MTN, 7.86%, 11/1/07
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
$ 363,000 Realty Income Corp., $ 369,060
7.75%, 5/6/07
234,000 Simon Property Group 253,936
LP, 7.75%, 1/20/11
233,000 Tanger Properties LP, 245,728
9.13%, 2/15/08 ------------
1,895,136
------------
STEEL - PRODUCERS - 0.65%
300,000 Steel Dynamics, Inc., 314,250
9.50%, 3/15/09
110,000 United States Steel 118,800
Corp., 9.75%, 5/15/10 ------------
433,050
------------
TELECOMMUNICATIONS - 0.45%
295,000 Sprint Capital Corp., 302,065
6.38%, 5/1/09 ------------
UTILITIES - 1.55%
235,000 Central Hudson Gas & 235,408
Electric Corp., Series D,
MTN, 5.87%, 3/28/07
277,000 Nevada Power Co., 298,708
10.88%, 10/15/09
500,000 Niagra Mohawk Power 501,555
Co., 7.75%, 5/15/06 ------------
1,035,671
------------
TOTAL CORPORATE BONDS 19,406,554
(Cost $19,781,486) ------------
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 32.44%
FANNIE MAE - 17.31%
491 7.00%, 12/1/07 491
38,727 6.42%, 11/1/08 (b) 39,366
2,110 8.25%, 1/1/09 2,117
6,581 8.00%, 2/1/09 6,693
583,043 4.41%, 3/1/11 (b) 558,945
1,575,165 4.63%, 12/1/11 (b) 1,540,583
1,192,000 5.76%, 12/25/11 1,219,843
845,000 4.89%, 4/1/12 (b) 829,396
445,000 4.49%, 11/25/12 425,144
770,000 6.52%, 7/25/16 806,258
33,578 5.50%, 3/1/17 33,408
51,101 5.50%, 5/1/17 50,843
210,552 5.00%, 8/1/17 205,843
12,401 9.50%, 6/25/18 13,359
478,425 4.50%, 9/1/18 458,386
505,000 4.00%, 5/25/19 444,572
10,230 9.25%, 10/1/20 11,047
1,021,114 5.50%, 6/1/23 1,006,423
980 7.00%, 2/1/30 1,010
438,207 4.98%, 11/25/32 (b) 429,805
393,993 5.00%, 4/1/33 376,148
37
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Quality Fixed Income Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
$ 497,023 5.00%, 8/1/33 $ 474,511
474,145 4.81%, 12/1/33 (b) 464,801
583,483 4.87%, 1/1/35 (b) 577,512
405,000 5.41%, 5/25/35 384,146
544,595 4.25%, 8/25/43 538,488
636,000 4.61%, 8/25/43 627,936
------------
11,527,074
------------
FREDDIE MAC - 1.59%
3,795 7.75%, 4/1/08 3,859
1,014 8.00%, 8/1/09 1,021
2,658 8.25%, 10/1/10 2,663
30,184 8.00%, 1/1/12 31,665
18,673 9.00%, 6/1/16 20,068
45,811 6.00%, 2/1/18 46,372
20,308 8.00%, 10/1/18 21,408
2,720 9.00%, 10/1/18 2,810
149,977 7.00%, 8/15/29 153,481
66,045 7.50%, 2/1/30 69,021
727,027 4.39%, 1/1/35 (b) 709,907
------------
1,062,275
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 5.65%
2,292 7.50%, 3/15/07 2,316
3,990 7.50%, 7/15/07 4,031
16,077 8.00%, 10/15/07 16,289
292,607 8.00%, 11/15/09 302,377
23,939 7.50%, 10/15/11 24,937
26,223 7.50%, 11/15/11 27,317
3,865 9.50%, 4/15/16 4,220
17,550 9.50%, 1/15/19 19,300
1,146 9.50%, 9/15/19 1,260
210,000 5.15%, 6/16/23 (b) 209,153
7,650 6.50%, 8/15/23 7,912
9,030 6.50%, 11/15/23 9,340
10,730 6.50%, 12/15/23 11,099
352,475 7.00%, 3/15/24 367,490
44,235 7.00%, 5/15/24 46,119
18,191 8.00%, 11/15/26 19,503
314,445 8.00%, 12/15/26 337,135
238,332 7.00%, 12/15/29 248,564
2,431 6.00%, 5/15/31 2,461
4,615 6.50%, 8/15/31 4,786
55,040 6.00%, 9/20/31 55,556
4,346 6.50%, 11/15/31 4,507
58,406 6.00%, 2/15/32 59,141
48,321 7.00%, 4/15/32 50,390
104,578 6.00%, 6/15/32 105,895
12,514 7.00%, 7/15/32 13,050
35,357 7.50%, 7/15/32 37,084
80,084 6.00%, 8/15/32 81,093
12,711 7.00%, 8/15/32 13,255
140,815 6.00%, 10/20/32 142,148
257,967 6.00%, 1/15/33 261,209
67,899 6.00%, 3/15/33 68,743
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
$ 54,273 6.00%, 4/15/33 $ 54,948
400,923 5.00%, 8/15/33 388,924
490,000 5.15%, 12/16/40 469,145
305,000 4.93%, 11/16/44 295,271
------------
3,765,968
------------
NEW VALLEY GENERATION IV - 0.14%
94,141 4.69%, 1/15/22 89,922
------------
SMALL BUSINESS ADMINISTRATION - 7.75%
3,922 9.80%, 7/1/08 4,028
1,242 10.05%, 8/1/08 1,282
7,343 10.05%, 4/1/09 7,631
595,309 4.68%, 9/10/14 570,186
638,111 4.64%, 2/10/15 609,461
607,021 5.04%, 3/10/15 586,512
309,067 4.88%, 11/1/24 297,121
303,344 4.86%, 1/1/25 290,895
646,367 5.11%, 4/1/25 629,731
260,859 4.84%, 5/1/25 249,548
678,933 4.57%, 6/1/25 637,036
609,749 4.75%, 7/1/25 579,003
706,518 4.86%, 7/25/30 (b) 702,694
------------
5,165,128
------------
TOTAL U.S. GOVERNMENT AGENCY 21,610,367
OBLIGATIONS ------------
(Cost $22,195,555)
U.S. TREASURY BONDS - 10.40%
1,750,000 4.00%, 2/15/15 (c) 1,640,009
400,000 4.50%, 2/15/16 (c) 389,031
1,240,000 6.25%, 8/15/23 (c) 1,406,335
3,319,000 5.38%, 2/15/31 (c) 3,493,765
------------
TOTAL U.S. TREASURY BONDS 6,929,140
(Cost $7,199,473) ------------
U.S. TREASURY INFLATION PROTECTION
BONDS - 3.58%
1,149,000 1.88%, 7/15/13 (c) 1,204,656
1,149,000 2.00%, 7/15/14 (c) 1,178,870
------------
TOTAL U.S. TREASURY INFLATION 2,383,526
PROTECTION BONDS ------------
(Cost $2,451,395)
INVESTMENT COMPANIES - 0.05%
35,929 Wells Fargo Prime 35,929
Investment Money ------------
Market Fund
TOTAL INVESTMENT COMPANIES 35,929
(Cost $35,929) ------------
38
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Quality Fixed Income Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
INVESTMENT OF CASH COLLATERAL FOR SECURITIES
ON LOAN - 14.64%
$9,753,015 Various Securities (see $ 9,753,015
Notes to Schedules of ------------
Portfolio Investments
for collateral
information)
TOTAL INVESTMENT OF CASH COLLATERAL 9,753,015
FOR SECURITIES ON LOAN ------------
(Cost $9,753,015)
TOTAL INVESTMENTS 76,730,814
(Cost $78,429,676) (a) - 115.12% ------------
LIABILITIES IN EXCESS OF OTHER (10,109,430)
ASSETS - (15.12)% ------------
NET ASSETS - 100.00% $ 66,621,384
============
(a) See Note 7 for the tax cost of securities and the breakdown of unrealized
appreciation (depreciation).
(b) Variable rate security. The rate reflected in the Schedule of Portfolio
Investments is the rate in effect on March 31, 2006. The maturity date
represents the actual maturity date.
(c) All or part of this security has been loaned as of March 31, 2006.
(d) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. Securities
have been deemed to be liquid based on procedures approved by the Board of
Trustees.
Abbreviations used are defined below:
AMBAC - Ambac Assurance Corporation
FGIC - Financial Guaranty Insurance
MBIA - MBIA Insurance Corporation
MTN - Medium Term Note
XLCA - XL Capital Insurance
SEE NOTES TO FINANCIAL STATEMENTS.
39
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Income Fund
- --------------------------------------------------------------------------------
MARCH 31, 2006 (UNAUDITED)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
MUNICIPAL BONDS - 96.21%
CALIFORNIA - 2.63%
$ 500,000 Santa Rosa Waste Water $ 557,830
Revenue, Series B, ------------
6.00%, 9/1/15, (FGIC
Insured)
COLORADO - 7.63%
500,000 Arkansas River Power 531,615
Authority Power
Revenue, 5.00%,
10/1/14, (XLCA Insured)
1,000,000 Weld County School 1,087,320
District, 5.50%, 12/1/19, ------------
(FSA Insured)
1,618,935
------------
CONNECTICUT - 5.17%
1,000,000 Bridgeport, Series A, 1,098,290
6.00%, 7/15/14, (FGIC ------------
Insured)
FLORIDA - 3.99%
500,000 Miami-Dade County 317,115
Special Obligation,
0.00%, 10/1/15, (MBIA
Insured)
500,000 State Board of 529,480
Education, Series J, ------------
5.00%, 6/1/19
846,595
------------
ILLINOIS - 10.49%
1,000,000 Chicago, Series B, 1,092,380
5.13%, 1/1/22, (AMBAC
Insured)
1,000,000 Cook County Township 1,134,000
High School District, ------------
5.50%, 12/1/19
2,226,380
------------
INDIANA - 9.19%
500,000 Anderson School 531,904
Building Corp., 5.00%,
7/15/17, (FSA Insured)
180,000 Boone County Indiana 179,212
Redevelopment, Series
B, 4.80%, 8/1/17
135,000 Boone County Indiana 134,391
Redevelopment, Series
B, 4.85%, 2/1/18
500,000 IPS Multi-School Building 501,450
Corp., 4.00%, 1/15/13,
(FSA Insured)
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
$ 250,000 Kokomo Center School $ 260,930
Building Corp., 6.75%,
7/15/07, (AMBAC
Insured)
345,000 Noblesville Multi-School 344,069
Building Corp., 4.00%, ------------
1/15/14, (FGIC Insured)
1,951,956
------------
MARYLAND - 1.76%
350,000 Baltimore Convention 374,507
Center Hotel Revenue, ------------
Series A, 5.00%, 9/1/14
MASSACHUSETTS - 10.24%
1,000,000 State Construction Loan, 1,080,460
Series E, 5.38%, 1/1/17
1,000,000 State Health & 1,093,010
Education Facilities ------------
Authority (Partners
Healthcare), Series C,
5.75%, 7/1/12
2,173,470
------------
MICHIGAN - 12.69%
1,000,000 Hartland School District 1,087,359
Construction, 6.00%,
5/1/20, (Q-SBLF Insured)
750,000 Howell Public Schools, 795,105
5.25%, 5/1/15, (Q-SBLF
Insured)
500,000 Jackson Public Schools, 543,680
6.00%, 5/1/13, (FGIC &
Q-SBLF Insured)
250,000 State Building Authority, 269,128
Series III, 5.38%, ------------
10/15/16
2,695,272
------------
MISSOURI - 1.22%
250,000 State Development 258,063
Finance Board, 5.25%, ------------
3/1/15
NEW HAMPSHIRE - 2.43%
500,000 Higher Education & 516,860
Health Facility (Franklin ------------
Pierce Law Center),
5.50%, 7/1/18
NEW YORK - 4.00%
785,000 New York City 848,357
Transitional Finance ------------
Future Tax, Series B,
5.50%, 2/1/16
40
================================================================================
SCHEDULE OF PORTFOLIO INVESTMENTS
================================================================================
Tamarack Tax-Free Income Fund (cont.)
- --------------------------------------------------------------------------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
OKLAHOMA - 4.32%
$ 500,000 McClain County $ 517,190
Economic Development
Authority (New Castle
Public Schools), 5.00%,
9/1/11
380,000 Oklahoma Baptist 399,388
University Authority, ------------
5.25%, 12/1/14
916,578
------------
SOUTH DAKOTA - 1.00%
210,000 West Central School 212,178
District No. 49-7, ------------
4.00%, 8/15/11, (FSA
Insured) (b)
TEXAS - 12.49%
170,000 Plano Independent 181,076
School District, 5.38%,
2/15/16, (PSF-GTD
Insured)
330,000 Plano Independent 354,067
School District, 5.38%,
2/15/16, Prefunded
02/15/11 @ 100,
(PSF-GTD Insured)
500,000 San Antonio Electric & 547,155
Gas, 5.38%, 2/1/15
500,000 San Antonio Electric & 535,825
Gas, 5.75%, 2/1/15
500,000 Socorro Independent 483,480
School District, Series A,
4.50%, 8/15/32,
(PSF-GTD Insured)
500,000 University of Texas 550,544
Revenue, Series B, ------------
5.25%, 8/15/19
2,652,147
------------
WASHINGTON - 5.04%
1,000,000 Seattle Municipal Light 1,070,980
& Power, 5.63%, ------------
12/1/16
WISCONSIN - 1.92%
400,000 State Health & 407,148
Educational Facilities ------------
Authority Revenue,
5.00%, 2/15/17
TOTAL MUNICIPAL BONDS 20,425,546
(Cost $19,688,004 ------------
SHARES OR
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
Investment Companies - 3.70%
784,813 Wells Fargo National $ 784,813
Tax-Free Money Market ------------
Fund
TOTAL INVESTMENT COMPANIES 784,813
(Cost $784,813) ------------
TOTAL INVESTMENTS 21,210,359
(Cost $20,472,817) (a) - 99.91% ------------
OTHER ASSETS IN EXCESS OF 18,569
LIABILITIES - 0.09% ------------
NET ASSETS - 100.00% $ 21,228,928
============
(a) See Note 7 for the tax cost of securities and the breakdown of unrealized
appreciation (depreciation) of securities.
(b) When-issued security.
Abbreviations used are defined below:
AMBAC - Ambac Assurance Corporation
FGIC - Financial Guaranty Insurance
FSA - Financial Security Assurance, Inc.
MBIA - MBIA Insurance Corporation
PSF-GTD -Permanent School Fund Guaranteed
Q-SBLF - Qualified School Board Loan Fund
XLCA - XL Capital Assurance, Inc.
SEE NOTES TO FINANCIAL STATEMENTS.
41
================================================================================
NOTES TO SCHEDULES OF PORTFOLIO INVESTMENTS
================================================================================
Notes to Schedules of Portfolio Investments
- --------------------------------------------------------------------------------
The cash collateral received for securities lending, as discussed in Note 2,
was pooled and invested into the following:
Government Quality Fixed
Income Fund Income Fund
----------- -------------
American General Finance, 4.78%, 4/13/2007 $ 25,897 $ 374,723
Atlantic Asset SEC Corporation, 4.83%, 4/12/2006 31,026 448,949
Atlas Capital Funding Corporation, 4.80%, 10/20/2006 31,063 449,484
Atomium Funding Corporation, 4.53%, 4/12/2006 24,873 359,907
Beta Finance Inc., 4.88%, 6/2/2006 31,067 449,542
Buckingham, LLC., COD, 4.83%, 4/25/2006 5,162 74,696
Buckingham, LLC., COD, 4.83%, 4/26/2006 15,484 224,059
Cedar Springs Capital Company, LLC., 4.47%, 4/5/2006 38,819 561,708
Concord Minutemen Capital Corporation, 4.72%, 4/12/2006 20,709 299,656
Concord Minutemen Capital Corporation, 4.72%, 4/11/2006 10,872 157,319
Corporate Asset Sec., 4.75%, 4/18/2006 36,169 523,359
Dexia Credit Local De France COD, 4.67%, 8/14/2006 7,738 111,967
Fairway Finance Corporation, 4.87%, 4/4/2006 33,130 479,387
Grampian Funding, LLC., 4.89%, 4/4/2006 31,059 449,425
Islands Bank, Inc., 4.84%, 3/22/2007 20,707 299,626
KLIO Funding Corporation, 4.83%, 4/25/2006 30,973 448,176
KLIO Funding Corporation, 4.82%, 4/26/2006 6,973 100,901
Legacy Capital, LLC., 4.58%, 4/6/2006 20,700 299,536
Lexington Parker Capital, 4.91%, 4/3/2006 5,177 74,914
Liberty Street Funding Corp., 4.90%, 4/3/2006 31,063 449,484
MBIA Global Funding, LLC., 4.78%, 2/20/2007 15,531 224,728
Met Life Global Funding, 4.67%, 3/12/2012 25,886 374,577
Morgan Stanley, CP, 4.94%, 10/10/2006 25,886 374,570
Morgan Stanley, CP, 4.94%, 10/30/2006 15,532 224,742
Perry Global Funding Limited, 4.51%, 4/10/2006 12,677 183,443
Whistlejacket Capital, 4.61%, 4/3/2006 10,354 149,828
White Pine Finance, LLC., 4.70%, 7/17/2006 25,886 374,570
GS Group Inc., 4.97%, 6/30/2006 20,709 299,656
Morgan Stanley Repurchase Agreement, 4.92%, 4/3/2006 62,894 910,083
-------- ----------
Total Collateral Held $674,016 $9,753,015
======== ==========
42
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
T. GERON BELL (64)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President of Twins Sports, Inc.
(parent company of the Minnesota Twins and Victory Sports) (2002-present); prior
thereto President of the Minnesota Twins Baseball Club Incorporated
(1987-present); Director, Great Hall Investment Funds, Inc. (1993-2004);
Trustee, J&B Funds (2003-2004); Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
LUCY HANCOCK BODE (54)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Healthcare consultant; Director,
RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
LESLIE H. GARNER JR. (55)
POSITION HELD WITH FUND: Trustee; Since January, 2004
Principal Occupation(s) During Past 5 Years: President, Cornell College;
Director, RBC Funds (1994-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
RONALD JAMES (55)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: President and Chief Executive
Officer, Center for Ethical Business Cultures (2000-present); Director, Great
Hall Investment Funds, Inc. (1993-2004); Trustee, J&B Funds (2003-2004);
Director, Babson Funds (2003-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
JOHN A. MACDONALD (57)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Investment Officer, Hall
Family Foundation; Trustee, J&B Funds (2001-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
H. DAVID RYBOLT (63)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Consultant, HDR Associates
(management consulting); Director, Babson Funds (1992-2004).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
JAMES R. SEWARD (53)
POSITION HELD WITH FUND: Trustee; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Private investor (2000-present);
Trustee, J&B Funds (2001-2004); Financial Consultant, Seward & Company, LLC
(1998-2000); CFA.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
43
================================================================================
MANAGEMENT
================================================================================
Independent Trustees(1)
- --------------------------------------------------------------------------------
WILLIAM B. TAYLOR (60)
POSITION HELD WITH FUND: Trustee; Since September, 2005
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Consultant (2003-present); Partner
(until 2003) Ernst & Young LLP.
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
Interested Trustees(1)
- --------------------------------------------------------------------------------
ERIK R. PREUS (40)
POSITION HELD WITH FUND: Trustee; Since January 2006
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Operating Officer, Voyageur
Asset Management (2005 to present); Director, Investment Consulting Services,
RBC Dain Rauscher (2004-2005); Director, Voyageur Advisory Services, Voyageur
Asset Management (2003-2004); Senior Vice President, Divisional Sales Manager,
PIMCO Allianz Investments and its predecessor firm, Nicholas Applegate
(2001-2003).
NUMBER OF PORTFOLIOS IN FUND COMPLEX OVERSEEN: 15
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
44
================================================================================
MANAGEMENT
================================================================================
Executive Officers(1)
- --------------------------------------------------------------------------------
JENNIFER D. LAMMERS (45)
POSITION HELD WITH FUND: President and Chief Executive Officer; Since January,
2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Managing Director, Voyageur Asset
Management (2000-present); Mutual Fund Services Director, Voyageur Asset
Management (2003-present); Chief Financial Officer, Great Hall Investment Funds,
Inc. (2001-2003); Compliance Officer, Great Hall Investment Funds, Inc.
(2000-2001); Director of Finance, Voyageur Asset Management (2000-2003); Vice
President and Manager, Financial Reporting, RBC Dain Rauscher (1998-2000);
President and Chief Executive Officer (2003-2004)(2).
- --------------------------------------------------------------------------------
DAVID P. LUX (51)
POSITION HELD WITH FUND: Chief Financial Officer; Since September, 2005
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Controller, Tamarack Funds,
November, 2004-September, 2005; Vice President and Mutual Funds Finance Manager,
Voyageur Asset Management (2004-present); Senior Financial Analyst, Voyageur
Asset Management (2003-2004); Senior Financial Analyst, RBC Dain Rauscher Fixed
Income Group (1995-2003).
- --------------------------------------------------------------------------------
MARTIN A. CRAMER (56)
POSITION HELD WITH FUND: Vice President, Assistant Secretary, Chief Compliance
Officer, and AML Compliance Officer; Since January, 2004
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Vice President and Mutual Fund
Administration Manager, Voyageur Asset Management (2003-present); Legal and
Regulatory Affairs Vice President, Compliance Officer and Secretary, J&B (mutual
fund management and distribution company) (1993-2003); Vice President, Assistant
Secretary, Compliance Officer and AML Compliance Officer (2003-2004)(2), and
formerly, Vice President, Compliance Officer and Secretary, Buffalo Fund Complex
(1994-2003) and Secretary, Gold Bank Funds (2001-2003).(3)
- --------------------------------------------------------------------------------
MONICA V. BALLARD (35)
POSITION HELD WITH FUND: Secretary and Chief Legal Officer since September,
2005
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Senior Associate General Counsel,
RBC Dain Rauscher (2004 to present); Counsel, Allianz Life (2002 to 2004);
Associate Counsel, American Express Financial Advisors (1996 to 2002).
- --------------------------------------------------------------------------------
JOHN M. HUBER (37)
POSITION HELD WITH FUND: Chief Investment Officer (2005)
PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS: Chief Investment Officer Fixed
Income, Voyageur Asset Management (2004-Present); Galliard Capital Management,
Principal and Senior Portfolio Manager (1995-2004).
- --------------------------------------------------------------------------------
(1) Unless otherwise specified, the address of each trustee/officer is 100
South Fifth Street, Suite 2300, Minneapolis, Minnesota 55402.
(2) Great Hall Investment Funds, Inc., J&B Funds, Babson Enterprise Fund, Inc.,
Babson Enterprise Fund II, Inc., Babson- Stewart Ivory International Fund,
Inc., Babson Value Fund, Inc., David L. Babson Growth Fund, Inc., D.L.
Babson Bond Trust, D.L. Babson Money Market Fund, Inc., D.L. Babson
Tax-Free Income Fund, Inc., Shadow Stock Fund, Inc., and Investors Mark
Series Fund, Inc.
(3) The Buffalo Fund Complex consists of Buffalo Balanced Fund, Inc., Buffalo
Large Cap Fund, Inc., Buffalo High Yield Fund, Inc., Buffalo Small Cap
Fund, Inc., Buffalo USA Global Fund, Inc., and the Buffalo Funds, which is
a series fund consisting of Buffalo Science & Technology Fund and Buffalo
Mid Cap Fund. Gold Bank Funds is a series fund consisting of Gold Bank
Equity and Gold Bank Money Market Fund.
45
================================================================================
SHARE CLASS INFORMATION
================================================================================
- --------------------------------------------------------------------------------
The Tamarack Fixed Income Funds offer five share classes, A, C, R, I, and S.
- --------------------------------------------------------------------------------
A CLASS
A Class shares are available for purchase primarily through investment
advisors, broker-dealers, banks and other financial services intermediaries. A
Class shares of the Tamarack Fixed Income Funds are subject to a maximum
up-front sales charge of 3.75% and a 1.00% contingent deferred sales charge
("CDSC") for redemption within 12 months of a $1 million or greater purchase. A
Class shares include a 0.25% (25 bps) annual 12b-1 service and distribution
fee. (The 12b-1 Plan allows for 50 bps, but the Funds' distributor is currently
contractually waiving 25 bps of the fee.) A Class shares have a higher up front
sales charge (load) than C Class shares, but a lower annual expense ratio.
- --------------------------------------------------------------------------------
C CLASS
C Class shares are also available for purchase primarily through investment
advisors, broker-dealers, banks and other financial services intermediaries. C
Class shares redeemed within 12 months of purchase are subject to a contingent
deferred sales charge (CDSC) of 1.00%. (No CDSC will be charged on shares
acquired through reinvestment of dividends or capital gains.) C Class shares
expenses include a 1.00% (100 bps) annual 12b-1 service and distribution fee. C
Class shares have a lower up-front sales charge (load) than A Class shares, but
due to the higher 12b-1 service and distribution fee, have higher annual
expenses than A Class shares.
- --------------------------------------------------------------------------------
R CLASS
R Class shares are available for purchase through employer-sponsored or 401(k)
retirement plans for which omnibus or program-level accounts are held on the
books of the Funds. R Class shares have no upfront sales charge (load), but are
subject to a 0.50% (50 bps) 12b-1 service and distribution fee. R Class shares
currently have annual expenses between A Class and C Class share expenses.
- --------------------------------------------------------------------------------
S CLASS
S Class shares are available through certain fee-based programs of
broker-dealers or registered investment advisors. This share class does not
have an upfront sales charge (load) or a 12b-1 service and distribution fee.
- --------------------------------------------------------------------------------
I CLASS
I Class shares are available in the Government Income and Quality Fixed Income
Funds. This share class is intended for investors meeting certain minimum
investment thresholds. This share class does not have an up front sales charge
(load) or a 12b-1 service and distribution fee.
- --------------------------------------------------------------------------------
For an investor purchasing Tamarack Funds shares through a financial services
intermediary, the question as to which share class, A or C, is the best choice
is dependent on many factors, including the amount to be invested and the
length of time an investor anticipates holding the shares. An investor should
consult with his or her financial advisor about his or her personal financial
situation to determine which share class is the best choice for his or her
individual situation.
46
================================================================================
SUPPLEMENTAL INFORMATION (Unaudited)
================================================================================
- --------------------------------------------------------------------------------
INFORMATION FOR TAMARACK FUNDS
SHAREHOLDERS REGARDING THE RENEWAL
OF INVESTMENT ADVISORY AGREEMENTS
The Tamarack Board of Trustees has renewed the Investment Advisory Agreement
with Voyageur Asset Management Inc. for each of the Funds. After evaluating the
services provided by the Advisor and reviewing the performance and relevant
expenses of each Fund, the Trustees concluded that it was in the best interests
of the Funds and their shareholders to retain Voyageur for an additional year.
As part of their review of the Agreement, the Trustees received and discussed
certain information, including information regarding the advisory services
performed, qualifi cations of staffing, and Fund performance and expenses. The
Trustees considered information provided in advance of their in-person meeting,
as well as supplemental information provided at the meeting. The Trustees met
with representatives from the Advisor's senior management team, as well as
senior investment professionals, to discuss this information and Voyageur's
intentions with regard to the ongoing management of the Funds. The Trustees
reviewed the quality of the services provided to the Funds by Voyageur,
including information prepared by a third-party consultant as to each Fund's
performance relative to an appropriate benchmark as well as compared to the
Fund's appropriate peer group. The Trustees also reviewed the investment
management fees payable to Voyageur. In this connection, the Trustees reviewed
comparative information prepared by a third-party consultant on investment
management fees paid and expenses incurred by similarly situated funds. The
Trustees also received reports from Voyageur regarding other investment
companies advised by them, including the advisory fees paid. The Trustees took
into account profitability data for Voyageur included in the 15C review
materials. The Trustees received information from Voyageur regarding other
benefits derived from their relationships with the funds. In connection with
their deliberations, the independent Trustees met separately with their
independent legal counsel to review the relevant material and consider their
responsibilities under relevant laws and regulations. In addition, the Trustees
noted the expected composition of each portfolio management team. Finally, the
Trustees took into account various advantages and benefits expected to be
associated with the overall consolidation of the Funds under the Tamarack Funds
complex, including operational, compliance and distribution services.
In reviewing performance, the Trustees generally emphasize three to five year
returns, as opposed to shorter time periods, when evaluating the investment
performance of the Funds. The performance of the Government Income Fund exceeded
the median of its peer group for both the three and five year periods. The
performance of both the Quality Fixed Income Fund and the Tax-Free Income Fund
trailed the medians of their respective groups for both time periods. However,
the Trustees noted that the performance of the Quality Fixed Income Fund had
shown recent improvement and exceeded that of its peer group median for the one
year period. While the Trustees acknowledged that relative performance of the
Funds has varied, particularly over the shorter time periods, the Trustees
determined that, based upon the information provided, Voyageur was taking
positive steps to seek to achieve strong performance for each applicable Fund
relative to such Fund's respective benchmark. In particular, the Trustees
reviewed with the Advisor's senior fixed income investment team the particular
steps being implemented to improve performance of the Tax-Free Income Fund. In
considering the quality of the services performed for each Fund by Voyageur, the
Trustees discussed the strong research capabilities and fundamental analysis
performed
47
================================================================================
SUPPLEMENTAL INFORMATION (Unaudited)
================================================================================
by the firm and also considered the extensive portfolio management experience
of Voyageur staff, the compliance structure and systems established by Voyageur
and the financial viability of Voyageur. The Trustees also considered steps
that already had been taken by Voyageur to expand upon existing research
capabilities and compliance processes and steps that were expected to be taken
to maintain and/or enhance such capabilities and processes.
In reviewing Fund expenses, the Trustees noted that total expenses for both the
Government Income Fund and the Quality Fixed Income Fund were at or below the
median for their respective peer groups. Total expenses of the Tax-Free Income
Fund, however, exceeded that of its peer group median. In view of the below
median performance and above median expenses of the Tax-Free Income Fund, the
Trustees endorsed Fund Management's recommendation to increase by 0.25% the
current waiver of advisory fees for this Fund. The Trustees noted that this
additional waiver would bring total expenses for the Tax-Free Income Fund to
below that of its peer group median. The Trustees also reviewed and approved
Fund Management's proposal to continue for an additional year the existing fee
waivers for the Government Income and Quality Fixed Income Funds in order to
maintain total expenses at their current levels.
Based upon their review, the Trustees determined that the advisory fees
proposed to be payable to Voyageur were reasonable and fair, the nature and
quality of services provided were satisfactory, and concluded that it is in the
interest of the Funds and their shareholders for the Trustees to approve the
Agreement for the Funds. In arriving at their decision to approve the renewal
of the Agreement, the Trustees did not assign relative weights to the factors
discussed above or deem any one or group of them to be controlling in and of
themselves.
48
================================================================================
SUPPLEMENTAL INFORMATION (Unaudited)
================================================================================
- --------------------------------------------------------------------------------
SHAREHOLDER EXPENSE EXAMPLES
As a shareholder of the Tamarack Funds, you incur two types of costs: (1)
transaction costs, including sales charges (loads) on purchases, and redemption
fees; (2) ongoing costs, including management fees; 12b-1 fees; and other Fund
expenses. This example is intended to help you understand your ongoing costs (in
dollars) of investing in the Tamarack Funds and to compare these costs with the
ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the
period and held for the entire period from October 1, 2005 through March 31,
2006.
- --------------------------------------------------------------------------------
ACTUAL EXPENSES
The table below provides information about actual account values and actual
expenses. You may use the information below, 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 table under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
10/1/05 3/31/06 10/1/05 - 3/31/06 10/1/05 - 3/31/06
------------- ------------- ----------------- -----------------
Government Income
Fund Class A $ 1,000.00 $ 998.40 $ 4.28 0.86%
Class I 1,000.00 999.70 3.04 0.61%
Class C 1,000.00 994.60 8.01 1.61%
Class R 1,000.00 997.20 5.43 1.09%
Class S 1,000.00 999.70 2.94 0.59%
Quality Fixed Income
Fund Class A 1,000.00 997.40 4.63 0.93%
Class I 1,000.00 997.60 3.39 0.68%
Class C 1,000.00 993.90 8.00 1.61%
Class R 1,000.00 996.10 5.92 1.19%
Class S 1,000.00 998.60 3.39 0.68%
Tax-Free Income Fund Class A 1,000.00 1,000.90 5.89 1.18%
Class C 1,000.00 997.10 9.41 1.89%
Class R 1,000.00 999.40 7.18 1.44%
Class S 1,000.00 1,002.10 4.54 0.91%
* Expenses are equal to the average account value times the Fund's annualized
expense ratio multiplied by the number of days in the most recent fiscal
half-year divided by the number of days in the fiscal year.
49
================================================================================
SUPPLEMENTAL INFORMATION (Unaudited)
================================================================================
- --------------------------------------------------------------------------------
HYPOTHETICAL EXAMPLE
FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on each Tamarack Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. The hypothetical account values and expenses may not be used to
estimate the actual ending account balance or expenses you paid for the period.
You may use this information to compare this 5% hypothetical example with the
5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the table is
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
BEGINNING ENDING EXPENSE PAID EXPENSE RATIO
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* DURING PERIOD
10/1/05 3/31/06 10/1/05 - 3/31/06 10/1/05 - 3/31/06
------------- ------------- ----------------- -----------------
Government Income
Fund Class A $ 1,000.00 $ 1,020.64 $ 4.33 0.86%
Class I 1,000.00 1,021.89 3.07 0.61%
Class C 1,000.00 1,016.90 8.10 1.61%
Class R 1,000.00 1,019.50 5.49 1.09%
Class S 1,000.00 1,021.99 2.97 0.59%
Quality Fixed Income
Fund Class A 1,000.00 1,020.29 4.68 0.93%
Class I 1,000.00 1,021.54 3.43 0.68%
Class C 1,000.00 1,016.90 8.10 1.61%
Class R 1,000.00 1,019.00 5.99 1.19%
Class S 1,000.00 1,021.54 3.43 0.68%
Tax-Free Income Fund Class A 1,000.00 1,019.05 5.94 1.18%
Class C 1,000.00 1,015.51 9.50 1.89%
Class R 1,000.00 1,017.75 7.24 1.44%
Class S 1,000.00 1,020.39 4.58 0.91%
* Expenses are equal to the average account value times the Fund's
annualized expense ratio multiplied by the number of days in the most
recent fiscal half-year divided by the number of days in the fiscal year.
50
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- --------------------------------------------------------------------------------
51
================================================================================
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- --------------------------------------------------------------------------------
52
[PHOTO]
Tamarack Funds
P.O. Box 219757
Kansas City, MO 64121-9757
800-422-2766
www.TamarackFunds.com
TF SAR 3/06 TAMARACK DISTRIBUTORS, INC.
536523 (3/06)
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report,
the registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions, regardless of whether these individuals are employed
by the registrant or a third party. If the registrant has not adopted
such a code of ethics, explain why it has not done so.
NOT APPLICABLE - ONLY FOR ANNUAL REPORTS.
The registrant must briefly describe the nature of any amendment,
during the period covered by the report, to a provision of its code of
ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third
party, and that relates to any element of the code of ethics definition
enumerated in paragraph (b) of this Item. The registrant must file a
copy of any such amendment as an exhibit pursuant to Item 12(a)(1),
unless the registrant has elected to satisfy paragraph (f) of this Item
by posting its code of ethics on its website pursuant to paragraph
(f)(2) of this Item, or by undertaking to provide its code of ethics to
any person without charge, upon request, pursuant to paragraph (f)(3)
of this Item.
If the registrant has, during the period covered by the report, granted
a waiver, including an implicit waiver, from a provision of the code of
ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or
controller, or persons performing similar functions, regardless of
whether these individuals are employed by the registrant or a third
party, that relates to one or more items set forth in paragraph (b) of
this Item, the registrant must briefly describe the nature of the
waiver, the name of the person to whom the waiver was granted, and the
date of the waiver.
NOT APPLICABLE - ONLY FOR ANNUAL REPORTS.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:
(i) Has at least one audit committee financial expert
serving on its audit committee; or
(ii) Does not have an audit committee financial
expert serving on its audit committee.
(2) If the registrant provides the disclosure required by
paragraph (a)(1)(i) of this Item, it must disclose the name of
the audit committee financial expert and whether that person
is "independent." In order to be considered "independent" for
purposes of this Item, a member of an audit committee may not,
other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board
committee:
(i) Accept directly or indirectly any consulting,
advisory, or other compensatory fee from the issuer;
or
(ii) Be an "interested person" of the investment
company as defined in Section 2(a)(19) of the Act (15
U.S.C. 80a- 2(a)(19)).
(3) If the registrant provides the disclosure required by
paragraph (a)(1)(ii) of this Item, it must explain why it does
not have an audit committee financial expert.
NOT APPLICABLE - ONLY FOR ANNUAL REPORTS.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
NOT APPLICABLE - ONLY FOR ANNUAL REPORTS.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17CFR 240.10A-3), state whether or not
the registrant has a separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A)
of the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the
registrant has such a committee, however designated, identify
each committee member. If the entire board of directors is
acting as the registrant's audit committee as specified in
Section 3(a)(58)(B) of the Exchange Act (15 U.S.C.
78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule
10A-3(d) under the Exchange Act (17CFR 240.10A-3(d)) regarding
an exemption from the listing standards for all audit
committees.
NOT APPLICABLE.
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule I - Investments in securities of unaffiliated issuers as of the
close of the reporting period as set forth in ss. 210.12-12 of Regulation S-X,
unless the schedule is included as part of the report to shareholders filed
under Item 1 of this Form.
NOT APPLICABLE.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual
report on this Form N-CSR must, unless it invests exclusively in non-voting
securities, describe the policies and procedures that it uses to determine how
to vote proxies relating to portfolio securities, including the procedures that
the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
NOT APPLICABLE.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
If the registrant is a closed-end management investment company that is filing
an annual report on this Form N-CSR, provide the information specified in
paragraphs (a) and (b) of this Item with respect to portfolio managers.
NOT APPLICABLE.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
If the registrant is a closed-end management investment company, provide the
information specified in paragraph (b) of this Item with respect to any purchase
made by or on behalf of the registrant or any "affiliated purchaser," as defined
in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares
or other units of any class of the registrant's equity securities that is
registered by the registrant pursuant to Section 12 of the Exchange Act (15
U.S.C. 781).
NOT APPLICABLE.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors, where those changes
were implemented after the registrant last provided disclosure in response to
the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or
this Item.
NOT APPLICABLE.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive
and principal financial officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as
of a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph, based on the evaluation of these controls
and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).
THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
HAVE CONCLUDED, BASED ON THEIR EVALUATION OF THE REGISTRANT'S DISCLOSURE
CONTROLS AND PROCEDURES AS CONDUCTED WITHIN 90 DAYS OF THE FILING DATE OF THIS
REPORT, THAT THESE DISCLOSURE CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED
AND ARE OPERATING EFFECTIVELY TO ENSURE THAT INFORMATION REQUIRED TO BE
DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS RECORDED, PROCESSED, SUMMARIZED AND
REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND EXCHANGE
COMMISSION'S RULES AND FORMS.
(b) Disclose any change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that
occurred during the second fiscal quarter of the period covered by this report
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING THAT OCCURRED DURING THE SECOND FISCAL QUARTER OF THE PERIOD COVERED
BY THIS REPORT THAT HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO
MATERIALLY AFFECT, THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of
the disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit.
NOT APPLICABLE - ONLY EFFECTIVE FOR ANNUAL REPORTS.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2(a)
under the Act (17 CFR 270.30a-2).
CERTIFICATIONS PURSUANT TO RULE 30a-2(a) ARE ATTACHED HERETO.
(a)(3) Any written solicitation to purchase securities under Rule 23c-1
under the Act (17 CFR 270.23c-1) sent or given during the period covered by the
report by or on behalf of the registrant to 10 or more persons.
NOT APPLICABLE.
(b) If the report is filed under Section 13(a) or 15(d) of the Exchange
Act, provide the certifications required by rule 30a-2(b) under the Act as an
exhibit. A certification furnished pursuant to this paragraph will not be deemed
"filed" for purposes of Section 18 of the Exchange Act, or otherwise subject to
the liability of that section. Such certification will not be deemed to be
incorporated by reference into any filing under the Securities Act of 1933 or
the Exchange Act, except to the extent that the registrant incorporates it by
reference.
CERTIFICATIONS PURSUANT TO RULE 30A-2(B) ARE FURNISHED HEREWITH.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Tamarack Funds Trust
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By (Signature and Title)* /s/ Jennifer Lammers
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Jennifer Lammers, President
Date 6/7/06
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Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Jennifer Lammers
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Jennifer Lammers, President
Date 6/7/06
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By (Signature and Title)* /s/ David Lux
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David Lux, Chief Financial Officer
Date 6/7/06
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* Print the name and title of each signing officer under his or her signature.