As filed with the Securities and Exchange Commission on July 6, 2006
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 811-21597
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PRIMECAP ODYSSEY FUNDS
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(Exact name of registrant as specified in charter)
225 SOUTH LAKE AVENUE, SUITE 400
PASADENA, CA 91101
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(Address of principal executive offices) (Zip code)
DAVID H. VAN SLOOTEN
225 SOUTH LAKE AVENUE, SUITE 400
PASADENA, CA 91101
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(Name and address of agent for service)
(626) 304-9222
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Registrant's telephone number, including area code
Date of fiscal year end: OCTOBER 31, 2006
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Date of reporting period: APRIL 30, 2006
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ITEM 1. REPORT TO STOCKHOLDERS.
SEMIANNUAL REPORT
FOR THE SIX MONTHS ENDED APRIL 30, 2006
PRIMECAP(R)
________________ODYSSEY FUNDS
PRIMECAP ODYSSEY STOCK FUND
PRIMECAP ODYSSEY GROWTH FUND
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
This page intentionally left blank.
(IMAGE OMITTED) TABLE OF CONTENTS
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Letter to Shareholders . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Performance Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Expense Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
Sector Breakdown . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Schedule of Investments . . . . . . . . . . . . . . . . . . . . . . . . . . .16
PRIMECAP Odyssey Stock Fund . . . . . . . . . . . . . . . . . . . . . . . .16
PRIMECAP Odyssey Growth Fund . . . . . . . . . . . . . . . . . . . . . . . 20
PRIMECAP Odyssey Aggressive Growth Fund . . . . . . . . . . . . . . . . . .24
Statements of Assets and Liabilities . . . . . . . . . . . . . . . . . . . . 27
Statements of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . 28
Statement of Changes in Net Assets . . . . . . . . . . . . . . . . . . . . . 29
PRIMECAP Odyssey Stock Fund . . . . . . . . . . . . . . . . . . . . . . . .29
PRIMECAP Odyssey Growth Fund . . . . . . . . . . . . . . . . . . . . . . . 30
PRIMECAP Odyssey Aggressive Growth Fund . . . . . . . . . . . . . . . . . .31
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
PRIMECAP Odyssey Stock Fund . . . . . . . . . . . . . . . . . . . . . . . .32
PRIMECAP Odyssey Growth Fund . . . . . . . . . . . . . . . . . . . . . . . 33
PRIMECAP Odyssey Aggressive Growth Fund . . . . . . . . . . . . . . . . . .34
Notes to Financial Statements . . . . . . . . . . . . . . . . . . . . . . . .35
Additional Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
1
(IMAGE OMITTED) LETTER TO SHAREHOLDERS
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DEAR FELLOW SHAREHOLDERS,
From October 31, 2005 through April 30, 2006, the PRIMECAP Odyssey Stock,
Growth, and Aggressive Growth Funds produced total returns of 13.65%, 13.67%,
and 16.64%, respectively, outperforming the Standard & Poor's 500 Composite
Stock Index (S&P 500 Index) return of 9.64%.
Several themes characterized the investment environment of the last six months.
The 23.1% return of the S&P Materials sector outpaced all other sectors, as
sharp price increases in gold, nickel, copper, aluminum, and steel fueled
significant gains in metals and mining stocks. Historically low inventories,
limited new supply exacerbated by unplanned outages, and robust global demand
growth led by China have created tight supply-and-demand balances across the
metals industry. Substantial speculative investment fund inflows into
commodities put further upward pressure on metals prices. As a result, metals
and mining stocks saw excellent returns. The Stock Fund was substantially
overweight in Materials during the period and benefited from this trend. The
Growth and Aggressive Growth Funds were both underweight in Materials.
Sustained high oil prices and their implications continued to substantially
affect this period's investment environment. Oil prices, which began the period
near $60 per barrel, ended the period near $70 per barrel, and the S&P Energy
sector posted a total return of over 17.2% during the period. This rise in oil
prices to unprecedented nominal levels affected not only the Energy sector, but
also sectors in which high oil prices can inflate costs, impair or stimulate
demand, and catalyze new investment. Many of our holdings in the Energy and
Industrials sectors benefited from this trend, while certain holdings in the
Consumer and Transportation sectors suffered. Although all three PRIMECAP
Odyssey Funds were underweight in energy stocks during the period, favorable
stock selection in all three Funds partially offset our under-allocation to this
sector.
All three Funds were overweight in Information Technology (IT). While the S&P IT
sector return of 6.6% was below that of the S&P 500 Index, our IT investments in
all three Funds produced returns that exceeded the returns of both the S&P IT
sector and the S&P 500 Index.
A more detailed discussion of the results of each PRIMECAP Odyssey Fund follows.
PRIMECAP ODYSSEY STOCK FUND
From October 31, 2005 through April 30, 2006, the PRIMECAP Odyssey Stock Fund's
total return of 13.65% exceeded the 9.64% return recorded by the unmanaged S&P
500 Index. The Stock Fund's outperformance was driven primarily by stock
selection, with mixed results from sector allocation.
Our most heavily weighted sector in the Stock Fund was Health Care, which
constituted 22.1% of the portfolio and exceeded the benchmark weighting by over
9 percentage points. Favorable stock selection helped offset our heavy
allocation to this underperforming sector. Our Health Care
2
LETTER TO SHAREHOLDERS
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investments returned approximately 6.1% during the period, outperforming the
benchmark return of 2.4%. Excellent returns from Guidant and Pfizer were
partially offset by declines from Sepracor, Medtronic, and Affymetrix.
Our Information Technology (IT) selections in the Stock Fund contributed
significantly to the Fund's outperformance. Favorable stock selection more than
offset our heavy allocation (18.7% vs. benchmark weight of 15.7%) to this
underperforming sector. Our IT investments appreciated approximately 11.3%
versus the S&P IT sector return of 6.6%, driven primarily by excellent returns
from NVIDIA, Corning, ASML, and Texas Instruments.
The Stock Fund also benefited from a number of investments in the Industrials,
Materials, Energy, and Consumer Discretionary sectors. McDermott International,
Caterpillar, Union Pacific, Phelps Dodge, Schlumberger, Dress Barn, Sony, and
CarMax all produced excellent returns.
Our disappointments were not concentrated in a few stocks or sectors but were
spread across many of our holdings. Symantec, JetBlue, Nortel Networks, and Dow
Chemical were among the investments that declined during the period.
The table below lists the top ten holdings, which collectively represent 22.00%
of the total portfolio at the period end.
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PRIMECAP ODYSSEY STOCK FUND ENDING % OF
TOP 10 HOLDINGS AS OF 4/30/06 TOTAL PORTFOLIO*
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Eli Lilly & Co. 3.41
Novartis AG 3.28
Medtronic Inc. 2.55
Roche Holding AG 2.06
Avery Dennison Corp. 1.92
Sony Corp. 1.84
GlaxoSmithKline PLC 1.81
Pfizer Inc. 1.76
Alaska Air Group Inc. 1.71
Southwest Airlines Co. 1.65
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TOTAL % OF PORTFOLIO 22.00
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* The percentage is calculated by using the ending market value of the security
divided by the total investments of the Fund.
3
LETTER TO SHAREHOLDERS
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PRIMECAP ODYSSEY GROWTH FUND
From October 31, 2005 through April 30, 2006, the PRIMECAP Odyssey Growth Fund's
total return of 13.67% exceeded the 9.64% return recorded by the unmanaged S&P
500 Index and the 7.06% return recorded by the Russell 1000 Growth Index.
Because of the Fund's strategy of selecting investments with above average
growth potential, we feel that it is important to benchmark the Growth Fund
against both the S&P 500 Index and the Russell 1000 Growth Index. The Growth
Fund's outperformance was driven primarily by stock selection, which overcame
unfavorable sector allocation.
Our most heavily weighted sectors in this Fund were Health Care and Information
Technology (IT). Together, these two sectors constituted 54.3% of the portfolio.
In both of these sectors, we have found a number of research-intensive companies
that stimulate growth through innovation. We believe that such companies, when
purchased at reasonable valuations, tend to outperform over long-term time
horizons.
Our IT investments constituted 29.0% of the total portfolio, exceeding the S&P
IT sector weighting by 13 percentage points. Favorable stock selection more than
offset our heavy allocation to this underperforming sector. Our IT investments
appreciated approximately 20.0% versus the S&P IT sector return of 6.6%, driven
primarily by excellent returns from Rambus, ASML, Akamai, FormFactor, Intuit,
NVIDIA, and Silicon Laboratories, which more than offset disappointments from
Symantec, Nortel Networks, and Avid Technology.
The Growth Fund benefited substantially from its Consumer Discretionary
holdings, which appreciated approximately 23.1% versus the S&P Consumer
Discretionary sector return of 7.8%. Excellent returns from Dress Barn,
Univision, Sony, and CarMax contributed to our results in this sector.
Our Health Care investments constituted 25.3% of the Growth Fund's portfolio and
exceeded the S&P Health Care sector weighting by over 12 percentage points. Our
Health Care investments returned approximately 5.3% during the period,
outperforming the benchmark return of 2.4%. Excellent returns from Guidant and
Pfizer were partially offset by declines from Affymetrix, Medtronic, and
Sepracor.
4
LETTER TO SHAREHOLDERS
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The table below lists the top ten holdings, which collectively represent 22.66%
of the total portfolio at the period end.
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PRIMECAP ODYSSEY GROWTH FUND ENDING % OF
TOP 10 HOLDINGS AS OF 4/30/06 TOTAL PORTFOLIO*
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Medtronic Inc. 3.09
Eli Lilly & Co. 3.00
Intuit Inc. 2.38
Novartis AG 2.23
ASML Holding N.V. 2.08
Roche Holding AG 2.06
Possis Medical Inc. 1.98
Sepracor Inc. 1.98
Sony Corp. 1.95
Laserscope Inc. 1.90
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TOTAL % OF PORTFOLIO 22.66
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* The percentage is calculated by using the ending market value of the
security divided by the total investments of the Fund.
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
From October 31, 2005 through April 30, 2006, the PRIMECAP Odyssey Aggressive
Growth Fund's return of 16.64% exceeded the 9.64% return recorded by the
unmanaged S&P 500 Index and the 15.18% return recorded by the Russell MidCap
Growth Index. Because of the Fund's strategy of selecting mid-cap and small-cap
companies with above average growth potential, we feel that it is important to
benchmark the Aggressive Growth Fund against both the S&P 500 Index and the
Russell MidCap Growth Index. The Aggressive Growth Fund's outperformance was
driven by favorable stock selection, which more than offset unfavorable sector
allocation.
Our most heavily weighted sector in this Fund was Information Technology (IT),
which constituted 46.6% of our portfolio and exceeded the S&P IT sector
weighting by nearly 31 percentage points. Our stock selections returned
approximately 31.6% versus the S&P IT return of 6.6%, driven by strong returns
among a number of investments, including Rambus, Akamai, FormFactor, Micromuse,
ASML, Opsware, NVIDIA, and RADVision, which more than offset disappointing
results from Inphonic, Avid Technology, and Nortel Networks.
Although the Fund was substantially underweight in Energy, favorable stock
selection produced a return of approximately 18.7% versus the S&P Energy sector
return of 17.2%. Our strongest contributors in this sector were Hanover
Compressor, Noble Corporation, and Pride International.
5
LETTER TO SHAREHOLDERS
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Our overweight position in Health Care detracted from the Fund's performance,
having returned approximately -2.1% versus the S&P Health Care sector gain of
2.4%. Substantial declines among Affymetrix, Pharmacyclics, Dendreon, and
Sepracor more than offset gains from Intuitive Surgical and Conceptus.
Many of our selections in the Aggressive Growth Fund have been and will continue
to be volatile, as their valuations are based on expectations of future revenue
streams from innovative new technologies, drugs, and medical devices.
Expectations of future revenues can change substantially from quarter to
quarter, with little or no new data precipitating such changes in sentiment. We
believe that over long-term time horizons, sentiment becomes less relevant, and
substantial earnings, once they manifest, could enable these types of
investments to recover and ultimately outperform.
The table below lists the top ten holdings, which collectively represent 27.42%
of the total portfolio at the period end.
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PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND ENDING % OF
TOP 10 HOLDINGS AS OF 4/30/06 TOTAL PORTFOLIO*
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Yahoo! Inc. 3.35
ASML Holding N.V. 3.15
Sepracor Inc. 3.04
Affymetrix Inc. 2.94
FormFactor Inc. 2.64
Laserscope Inc. 2.62
Roche Holding AG 2.59
Stratasys Inc. 2.53
Rambus Inc. 2.32
Conceptus Inc. 2.24
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TOTAL % OF PORTFOLIO 27.42
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* The percentage is calculated by using the ending market value of the
security divided by the total investments of the Fund.
6
LETTER TO SHAREHOLDERS
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STRUCTURE OF PORTFOLIO, POSITIONING, AND OUTLOOK FOR THE
PRIMECAP ODYSSEY FUNDS
We generally invest in equities in which our expectations for earnings growth
are greater than consensus and greater than the overall market. We select stocks
using a bottom-up methodology, with each stock being purchased based on its own
merits; however, there are several themes worthy of discussion.
In all three Funds, we continue to be heavily invested in healthcare stocks.
Since the inception of the PRIMECAP Odyssey Funds on November 1, 2004, this
sector has not performed well for us. Price-earnings (P/E) multiples of drug
companies remain near 40-year lows, and drug company market capitalizations, as
a percentage of the S&P 500 Index, are near 20-year lows. Concerns about drug
re-importation, rising healthcare costs, a slowdown in research and development
(R&D) productivity, patent expirations, and competition from generics have
caused significant multiple compression in this sector.
Consistent with our philosophy that actual risk is often inversely proportional
to perceived risk, we believe that investors have overreacted to the
aforementioned concerns and currently under-appreciate the growth opportunities
that lie ahead for drug companies. We believe our pharmaceutical and
biotechnology investments will see an acceleration in R&D productivity over the
next five years, as advances in genetics and information technology result in
innovative new drugs and therapies. Drug companies should also benefit from what
has come to be known as the "age wave." The first of the baby boomers will turn
65 in 2007, followed by 14 years of additional baby boomers reaching this
important age. Upon reaching this milestone, baby boomers will enter the most
healthcare intensive part of their lives. While concerns about a rise in
healthcare costs as this trend manifests are merited, drugs constitute less than
10% of total healthcare expenditures and represent one of the most efficient and
cost effective means of delivering healthcare.
We remain committed to our investments in this sector and have increased our
Health Care weightings in all three Funds. In the Stock and Growth Funds, six of
our top ten holdings are Health Care companies; in the Aggressive Growth Fund,
four of our top ten holdings are in Health Care.
We also remain heavily invested in Information Technology. On April 30, 2006,
the Dow Jones Industrial Average is near an all-time high, while the
technology-heavy NASDAQ Composite remains at less than half of the level seen in
March, 2000. During the last six years, many software, hardware, semiconductor,
and Internet companies have seen robust revenues and earnings growth. We believe
valuations of our IT investments are reasonable, and the global growth
opportunity for this sector remains very compelling. A majority of the world's
literate population has yet to use a wireless phone, obtain a personal computer,
or connect to the Internet. Much of the global opportunity for these information
technology companies exists in countries with current account surpluses. Global
consumers are steadily acquiring the modern technological devices and software
that have become an essential part of life in more developed economies.
7
LETTER TO SHAREHOLDERS
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In closing, we would like to thank you for entrusting your hard-earned capital
with us. We will continue to work diligently to prove worthy of that trust.
Sincerely,
PRIMECAP Management Company
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THE FUNDS INVEST IN SMALLER COMPANIES, WHICH INVOLVES ADDITIONAL RISKS SUCH AS
LIMITED LIQUIDITY AND GREATER VOLATILITY. ALL FUNDS MAY INVEST IN FOREIGN
SECURITIES, WHICH INVOLVES GREATER VOLATILITY AND POLITICAL, ECONOMIC AND
CURRENCY RISKS, AND DIFFERENCES IN ACCOUNTING METHODS. MUTUAL FUND INVESTING
INVOLVES RISK, AND LOSS OF PRINCIPAL IS POSSIBLE.
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS.
Performance figures reflect fee waivers in effect; in the absence of fee
waivers, total returns would be lower.
The Standard & Poor's 500 Composite Stock Index is a broad based index of 500
stocks, which is widely recognized as representative of the market in general.
The Russell 1000 Growth Index is an index that measures the performance of those
Russell 1000 companies with higher price-to-book ratios and higher forecasted
growth rates. The Russell MidCap Growth Index measures the performance of those
Russell MidCap companies with higher price-to-book ratios and higher forecasted
growth rates. The Dow Jones Industrial Average is an index of 30 of the largest
public companies in the United States. The NASDAQ Composite Index measures all
NASDAQ domestic and non-US based common stocks listed on the NASDAQ Stock
Market. The Index is market value weighted. The NASDAQ Stock Market is an
electronic screen-based securities market with approximately 3200 listed
companies. These indices do not incur expenses and are not available for
investment.
Price to earnings is calculated by dividing the current price of the stock by
the company's earnings per share.
Please refer to the Schedule of Investments for details of Fund holdings. Fund
holdings and sector allocations are subject to change at any time and are not
recommendations to buy or sell any security. (06/06)
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NOTE: SECTOR WEIGHTINGS ARE BASED ON AVERAGE WEIGHT FOR THE PERIOD.
8
(IMAGE OMITTED) PERFORMANCE GRAPHS
PRIMECAP ODYSSEY STOCK FUND
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The following chart compares the value of a hypothetical $10,000 investment in
the PRIMECAP Odyssey Stock Fund from November 1, 2004 to April 30, 2006 compared
to the S&P 500 Index. This chart illustrates the performance of a hypothetical
$10,000 investment made on the Fund's inception date and is not intended to
imply any future performance. The returns shown do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. The chart assumes reinvestment of capital gains and dividends.
PRIMECAP Odyssey Stock Fund
As Of 04/30/06
PRIMECAP Odyssey S&P 500
Stock Fund Index
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11/1/2004 $10,000 $10,000
11/30/2004 $10,360 $10,402
12/31/2004 $10,920 $10,756
1/31/2005 $10,610 $10,493
2/28/2005 $10,900 $10,714
3/31/2005 $10,740 $10,524
4/30/2005 $10,490 $10,324
5/31/2005 $10,940 $10,652
6/30/2005 $10,990 $10,667
7/31/2005 $11,530 $11,064
8/31/2005 $11,610 $10,963
9/30/2005 $11,630 $11,052
10/31/2005 $11,480 $10,868
11/30/2005 $11,950 $11,278
12/31/2005 $12,126 $11,282
1/31/2006 $12,767 $11,581
2/28/2006 $12,617 $11,612
3/31/2006 $12,907 $11,756
4/30/2006 $13,047 $11,914
TOTAL RETURN
PERIOD ENDED APRIL 30, 2006
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SINCE INCEPTION
1 YEAR (11/01/04)
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PRIMECAP Odyssey Stock Fund 24.37% 19.50%
S&P 500 Index* 15.42% 12.44%
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. THE 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 OF THE FUND MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
END MAY BE OBTAINED BY CALLING 1-800-729-2307. THE FUNDS IMPOSE A 2% REDEMPTION
FEE ON SHARES HELD LESS THAN 60 DAYS. Performance figures reflect the fee waiver
in effect and, in the absence of fee waivers, total returns would be lower.
SHORT TERM PERFORMANCE, IN PARTICULAR, IS NOT A GOOD INDICATION OF A FUND'S
FUTURE PERFORMANCE, AND AN INVESTMENT SHOULD NOT BE MADE BASED SOLELY ON
RETURNS.
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* The S&P 500 Index is an unmanaged index composed of 500 common stocks
representative of the stock market as a whole.
9
PERFORMANCE GRAPHS
PRIMECAP ODYSSEY GROWTH FUND
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The following chart compares the value of a hypothetical $10,000 investment in
the PRIMECAP Odyssey Growth Fund from November 1, 2004 to April 30, 2006
compared to the S&P 500 Index. This chart illustrates the performance of a
hypothetical $10,000 investment made on the Fund's inception date and is not
intended to imply any future performance. The returns shown do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares. The chart assumes reinvestment of capital gains and
dividends.
PRIMECAP Odyssey Growth Fund
As Of 04/30/06
PRIMECAP Odyssey S&P 500
Growth Fund Index
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11/1/2004 $10,000 $10,000
11/30/2004 $10,410 $10,402
12/31/2004 $10,960 $10,756
1/31/2005 $10,550 $10,493
2/28/2005 $10,810 $10,714
3/31/2005 $10,640 $10,524
4/30/2005 $10,450 $10,324
5/31/2005 $11,060 $10,652
6/30/2005 $11,060 $10,667
7/31/2005 $11,540 $11,064
8/31/2005 $11,560 $10,963
8/31/2005 $11,610 $11,052
10/31/2005 $11,620 $10,868
11/30/2005 $12,110 $11,278
12/31/2005 $12,248 $11,282
1/31/2006 $12,908 $11,581
2/28/2006 $12,858 $11,612
3/31/2006 $13,158 $11,756
4/30/2006 $13,208 $11,914
TOTAL RETURN
PERIOD ENDED APRIL 30, 2006
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SINCE INCEPTION
1 YEAR (11/01/04)
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PRIMECAP Odyssey Growth Fund 26.40% 20.49%
S&P 500 Index* 15.42% 12.44%
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. THE 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 OF THE FUND MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
END MAY BE OBTAINED BY CALLING 1-800-729-2307. THE FUNDS IMPOSE A 2% REDEMPTION
FEE ON SHARES HELD LESS THAN 60 DAYS. Performance figures reflect the fee waiver
in effect and, in the absence of fee waivers, total returns would be lower.
SHORT TERM PERFORMANCE, IN PARTICULAR, IS NOT A GOOD INDICATION OF A FUND'S
FUTURE PERFORMANCE, AND AN INVESTMENT SHOULD NOT BE MADE BASED SOLELY ON
RETURNS.
- ---------------
* The S&P 500 Index is an unmanaged index composed of 500 common stocks
representative of the stock market as a whole.
10
PERFORMANCE GRAPHS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
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The following chart compares the value of a hypothetical $10,000 investment in
the PRIMECAP Odyssey Aggressive Growth Fund from November 1, 2004 to April 30,
2006 compared to the S&P 500 Index. This chart illustrates the performance of a
hypothetical $10,000 investment made on the Fund's inception date and is not
intended to imply any future performance. The returns shown do not reflect the
deduction of taxes that a shareholder would pay on fund distributions or the
redemption of fund shares. The chart assumes reinvestment of capital gains and
dividends.
PRIMECAP Odyssey Aggressive Growth Fund
As Of 04/30/06
PRIMECAP Odyssey S&P 500
Aggressive Growth Index
----------------- -----
11/1/2004 $10,000 $10,000
11/30/2004 $10,510 $10,402
12/31/2004 $11,080 $10,756
1/31/2005 $10,500 $10,493
2/28/2005 $10,690 $10,714
3/31/2005 $10,470 $10,524
4/30/2005 $9,890 $10,324
5/31/2005 $10,600 $10,652
6/30/2005 $10,560 $10,667
7/31/2005 $11,220 $11,064
8/31/2005 $11,170 $10,963
9/30/2005 $11,400 $11,052
10/31/2005 $11,240 $10,868
11/30/2005 $12,000 $11,278
12/31/2005 $11,960 $11,282
1/31/2006 $12,790 $11,581
2/28/2006 $12,700 $11,612
3/31/2006 $13,060 $11,756
4/30/2006 $13,110 $11,914
TOTAL RETURN
PERIOD ENDED APRIL 30, 2006
---------------------------
SINCE INCEPTION
1 YEAR (11/01/04)
------ ----------
PRIMECAP Odyssey Aggressive Growth Fund 32.56% 19.88%
S&P 500 Index* 15.42% 12.44%
PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. THE 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 OF THE FUND MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
END MAY BE OBTAINED BY CALLING 1-800-729-2307. THE FUNDS IMPOSE A 2% REDEMPTION
FEE ON SHARES HELD LESS THAN 60 DAYS. Performance figures reflect the fee waiver
in effect and, in the absence of fee waivers, total returns would be lower.
SHORT TERM PERFORMANCE, IN PARTICULAR, IS NOT A GOOD INDICATION OF A FUND'S
FUTURE PERFORMANCE, AND AN INVESTMENT SHOULD NOT BE MADE BASED SOLELY ON
RETURNS.
- --------------
* The S&P 500 Index is an unmanaged index composed of 500 common stocks
representative of the stock market as a whole.
11
(IMAGE OMITTED) EXPENSE EXAMPLE - (UNAUDITED)
----------------------------------------------------------
As a shareholder of the 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 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 31, 2005 to April 30, 2006.
ACTUAL EXPENSES
The information in the table under the heading "Actual Performance" provides
actual account values and actual expenses. You may use the information in these
columns, 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 row entitled "Expenses Paid during Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The information in the table under the heading "Hypothetical Performance (5%
return before expenses)" provides hypothetical account values and hypothetical
expenses based on the Funds' actual expense ratios and an assumed rate of return
of 5% per year before expenses, which are not the Funds' actual returns. The
hypothetical account values and expenses may not be used to estimate the actual
ending account balance or expenses you paid for the period. You may use this
information to compare the ongoing costs of investing in the Funds and other
mutual funds. To do so, compare these 5% hypothetical examples with the 5%
hypothetical examples that appear in the shareholder reports of the other mutual
funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only. Therefore, the information under the heading "Hypothetical
Performance (5% return before expenses)" is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different mutual funds. In addition, if transactional costs were included, your
costs would have been higher.
12
EXPENSE EXAMPLE - (UNAUDITED)
- --------------------------------------------------------------------------------
EXPENSES EXPENSE
PAID RATIO
BEGINNING ENDING DURING DURING
ACCOUNT ACCOUNT PERIOD* PERIOD*
VALUE VALUE (10/31/05 TO (10/31/05 TO
(10/31/05) (04/30/06) (04/30/06) 04/30/06)
- --------------------------------------------------------------------------------
PRIMECAP ODYSSEY STOCK FUND
Actual Performance $1,000.00 $1,136.50 $5.35 1.01%
Hypothetical Performance
(5% return before $1,000.00 $1,019.79 $5.05 1.01%
expenses)
- --------------------------------------------------------------------------------
PRIMECAP ODYSSEY GROWTH FUND
Actual Performance $1,000.00 $1,136.70 $4.57 0.86%
Hypothetical Performance
(5% return before $1,000.00 $1,020.52 $4.32 0.86%
expenses)
- --------------------------------------------------------------------------------
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
Actual Performance $1,000.00 $1,166.40 $5.54 1.03%
Hypothetical Performance
(5% return before $1,000.00 $1,019.68 $5.16 1.03%
expenses)
- --------------------------------------------------------------------------------
- ---------------
* Expenses are equal to the Funds' annualized expense ratio as indicated,
multiplied by the average account value over the period, multiplied by the
number of days in the most recent fiscal half-year period (181), then
divided by the number of days in the fiscal year (365) to reflect the
one-half year period.
13
(IMAGE OMITTED) SECTOR BREAKDOWN
-----------------------------------------------------------
PRIMECAP ODYSSEY STOCK FUND
---------------------------------------
Consumer Discretionary 13.9%
Consumer Staples 0.3%
Energy 6.3%
Financials 7.0%
Health Care 21.9%
Industrials 14.0%
Information Technology 18.0%
Materials 8.6%
Telecommunication Services 0.9%
Short Term Investments 9.1%
---------------------------------------
TOTAL 100.0%
---------------------------------------
PRIMECAP ODYSSEY GROWTH FUND
---------------------------------------
Consumer Discretionary 12.4%
Energy 4.2%
Financials 5.3%
Health Care 26.5%
Industrials 10.9%
Information Technology 29.6%
Materials 1.9%
Telecommunication Services 0.7%
Short Term Investments 8.5%
---------------------------------------
TOTAL 100.0%
---------------------------------------
The tables above list sector allocations as a percentage of each Fund's total
investments as of April 30, 2006. The management report makes reference to
average allocations during the period. As a result, the sector allocations above
may differ from those discussed in the management report.
14
SECTOR BREAKDOWN
- --------------------------------------------------------------------------------
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
---------------------------------------
Consumer Discretionary 6.0%
Consumer Staples 2.6%
Energy 3.8%
Financials 1.9%
Health Care 21.7%
Industrials 7.8%
Information Technology 42.7%
Materials 1.4%
Short Term Investments 12.1%
---------------------------------------
TOTAL 100.0%
---------------------------------------
The table above lists sector allocations as a percentage of the Fund's total
investments as of April 30, 2006. The management report makes reference to
average allocations during the period. As a result, the sector allocations above
may differ from those discussed in the management report.
15
(IMAGE OMITTED) SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY STOCK FUND
---------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED)
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS: 91.0%
CONSUMER DISCRETIONARY: 13.9%
7,800 Bed Bath & Beyond, Inc. (a) .................... $ 299,130
3,200 Blue Nile, Inc. (a) ............................ 111,360
16,400 CarMax, Inc. (a) ............................... 579,084
20,000 Comcast Corp. (a) .............................. 619,000
35,900 DIRECTV Group, Inc. (The) (a) .................. 613,172
20,000 Dress Barn, Inc. (a) ........................... 505,800
10,000 Eastman Kodak Co. .............................. 269,600
15,900 Kohl's Corp. (a) ............................... 887,856
20,000 Mattel, Inc. ................................... 323,600
3,600 Nordstrom, Inc. ................................ 137,988
22,200 Sony Corp. - ADR ............................... 1,086,468
4,050 Target Corp. ................................... 215,055
11,950 Time Warner, Inc. .............................. 207,930
38,550 TJX Cos, Inc. .................................. 930,212
15,100 Univision Communications, Inc. (a) ............. 538,919
11,000 Walt Disney Co. (The) .......................... 307,560
4,000 Whirlpool Corp. ................................ 359,000
4,300 Yum! Brands, Inc. .............................. 222,224
-----------
8,213,958
-----------
CONSUMER STAPLES: 0.3%
10,700 Cott Corp. (a) ................................. 160,072
-----------
ENERGY: 6.3%
1,200 Arch Coal, Inc. ................................ 113,988
2,080 Chevron Corp. .................................. 126,922
5,400 Cooper Cameron Corp. (a) ....................... 271,296
8,000 EnCana Corp. ................................... 400,400
9,200 EOG Resources, Inc. ............................ 646,116
1,400 GlobalSantaFe Corp. ............................ 85,694
8,000 Murphy Oil Corp. ............................... 401,440
5,422 National Oilwell Varco, Inc. (a) ............... 373,955
550 Noble Corp. .................................... 43,417
1,100 Pioneer Natural Resources Co. .................. 47,102
6,200 Pogo Producing Co. ............................. 308,078
13,200 Schlumberger Ltd. .............................. 912,648
-----------
3,731,056
-----------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16
SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY STOCK FUND
- --------------------------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
Shares Value
- --------------------------------------------------------------------------------
FINANCIALS: 7.0%
7,600 American International Group, Inc. ............. $ 495,900
18,700 Bank of New York Co., Inc. (The) ............... 657,305
290 Berkshire Hathaway, Inc. - Class B (a) ......... 856,080
11,500 Chubb Corp. .................................... 592,710
6,000 Fannie Mae ..................................... 303,600
5,500 Fifth Third Bancorp ............................ 222,310
19,750 Marsh & McLennan Cos, Inc. ..................... 605,733
3,850 MBIA, Inc. ..................................... 229,575
3,000 Washington Mutual, Inc. ........................ 135,180
-----------
4,098,393
-----------
HEALTH CARE: 21.9%
16,300 Affymetrix, Inc. (a) ........................... 466,995
5,600 Amgen, Inc. (a) ................................ 379,120
19,750 Biogen Idec, Inc. (a) .......................... 885,787
38,519 Boston Scientific Corp. (a) .................... 895,184
38,000 Eli Lilly & Co. ................................ 2,010,960
18,800 GlaxoSmithKline PLC - ADR ...................... 1,069,344
30,000 Medtronic, Inc. ................................ 1,503,600
33,650 Novartis AG - ADR .............................. 1,935,212
40,900 Pfizer, Inc. ................................... 1,035,997
4,400 Pharmacyclics, Inc. (a) ........................ 21,428
7,900 Roche Holding AG - CHF ......................... 1,214,748
20,100 Sepracor, Inc. (a) ............................. 897,264
12,900 Waters Corp. (a) ............................... 584,628
-----------
12,900,267
-----------
INDUSTRIALS: 14.0%
6,000 3M Co. ......................................... 512,580
26,500 Alaska Air Group, Inc. (a) ..................... 1,005,940
23,400 AMR Corp. (a) .................................. 576,576
18,100 Avery Dennison Corp. ........................... 1,131,250
2,200 Burlington Northern Santa Fe Corp. ............. 174,966
6,000 Canadian National Railway Co. .................. 269,460
8,200 Caterpillar, Inc. .............................. 621,068
11,000 Chicago Bridge & Iron Co. N.V. - ADR ........... 263,670
2,050 Fluor Corp. .................................... 190,465
16,300 JetBlue Airways Corp. (a) ...................... 167,238
13,400 McDermott International, Inc. (a) .............. 814,720
5,200 Norfolk Southern Corp. ......................... 280,800
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17
SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY STOCK FUND
- --------------------------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
Shares Value
- --------------------------------------------------------------------------------
INDUSTRIALS (CONTINUED)
19,900 Pall Corp. ..................................... $ 600,582
59,900 Southwest Airlines Co. ......................... 971,578
2,300 Thomas & Betts Corp. (a) ....................... 130,985
5,800 Union Pacific Corp. ............................ 529,018
-----------
8,240,896
-----------
INFORMATION TECHNOLOGY: 18.1%
7,650 Accenture Ltd. - Class A ....................... 222,386
11,200 Agilent Technologies, Inc. (a) ................. 430,304
26,000 Applied Materials, Inc. ........................ 466,700
26,500 ASML Holding N.V. (a) .......................... 560,475
6,400 Comverse Technology, Inc. (a) .................. 144,960
25,950 Corning, Inc. (a) .............................. 716,998
43,300 EMC Corp. (a) .................................. 584,983
2,400 Emulex Corp. (a) ............................... 43,560
7,000 First Data Corp. ............................... 333,830
496 Freescale Semiconductor, Inc. - Class B (a) .... 15,708
27,500 Intel Corp. .................................... 549,450
13,500 Intuit, Inc. (a) ............................... 731,295
4,000 KLA-Tencor Corp. ............................... 192,640
7,500 L.M. Ericsson Telephone Co. - ADR .............. 266,025
38,000 Microsoft Corp. ................................ 917,700
6,000 Motorola, Inc. ................................. 128,100
182,000 Nortel Networks Corp. (a) ...................... 484,120
16,000 NVIDIA Corp. (a) ............................... 467,520
52,300 Oracle Corp. (a) ............................... 763,057
7,200 Paychex, Inc. .................................. 290,808
4,100 Research In Motion Ltd. (a) .................... 314,183
1,600 Silicon Laboratories, Inc. (a) ................. 74,576
48,000 Symantec Corp. (a) ............................. 786,240
27,100 Texas Instruments, Inc. ........................ 940,641
6,100 Yahoo!, Inc. (a) ............................... 199,958
-----------
10,626,217
-----------
MATERIALS: 8.6%
14,400 Alcoa, Inc. .................................... 486,432
10,750 Dow Chemical Co. (The) ......................... 436,557
7,500 Inco Ltd. ...................................... 423,525
10,000 MeadWestvaco Corp. ............................. 285,100
2,000 Minerals Technologies, Inc. .................... 114,440
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18
SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY STOCK FUND
- --------------------------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
Shares Value
- --------------------------------------------------------------------------------
MATERIALS (CONTINUED)
7,150 Monsanto Co. ................................... $ 596,310
7,000 Newmont Mining Corp. ........................... 408,520
4,800 Phelps Dodge Corp. ............................. 413,712
4,000 Potash Corp. of Saskatchewan ................... 378,720
3,250 Praxair, Inc. .................................. 182,423
8,000 Vulcan Materials Co. ........................... 679,680
9,300 Weyerhaeuser Co. ............................... 655,371
-----------
5,060,790
-----------
TELECOMMUNICATION SERVICES: 0.9%
20,850 Sprint Corp. ................................... 517,080
-----------
TOTAL COMMON STOCKS
(cost $47,249,402) ............................. 53,548,729
-----------
Principal
Amount
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 9.2%
$ 5,392,557 Dreyfus Institutional US Treasury
Money MarketFund ............................... $ 5,392,557
------------
TOTAL SHORT-TERM INVESTMENTS
(cost $5,392,557) ..................................... 5,392,557
------------
TOTAL INVESTMENTS
(cost $52,641,959): 100.2% ............................ 58,941,286
Liabilities in Excess of Other Assets: (0.2)% .................. (139,149)
------------
TOTAL NET ASSETS: 100.0% ....................................... $ 58,802,137
============
- -------------
Percentages are stated as a percent of net assets.
ADR - American Depository Receipt.
CHF - Swiss Security.
(a) Non Income Producing.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19
(IMAGE OMITTED) SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY GROWTH FUND
--------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED)
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS: 92.3%
CONSUMER DISCRETIONARY: 12.5%
60,000 99 Cents Only Stores (a) ...................... $ 715,800
19,200 Bed Bath & Beyond, Inc. (a) ................... 736,320
37,450 CarMax, Inc. (a) .............................. 1,322,359
20,000 Comcast Corp. (a) ............................. 619,000
54,800 DIRECTV Group, Inc. (The) (a) ................. 935,984
36,000 Dress Barn, Inc. (a) .......................... 910,440
44,000 Gentex Corp. .................................. 645,040
17,850 Kohl's Corp. (a) .............................. 996,744
30,000 Mattel, Inc. .................................. 485,400
6,700 Nordstrom, Inc. ............................... 256,811
75,800 Quiksilver, Inc. (a) .......................... 1,036,186
48,000 Sony Corp. - ADR .............................. 2,349,120
7,450 Target Corp. .................................. 395,595
27,950 Time Warner, Inc. ............................. 486,330
43,050 TJX Cos, Inc. ................................. 1,038,797
35,100 Univision Communications, Inc. (a) ............ 1,252,719
3,500 Walt Disney Co. (The) ......................... 97,860
12,450 Yum! Brands, Inc. ............................. 643,416
-------------
14,923,921
-------------
ENERGY: 4.2%
3,129 Chevron Corp. ................................. 190,932
9,000 Cooper Cameron Corp. (a) ...................... 452,160
9,600 EnCana Corp. .................................. 480,480
11,000 EOG Resources, Inc. ........................... 772,530
10,000 Murphy Oil Corp. .............................. 501,800
3,200 National Oilwell Varco, Inc. (a) .............. 220,704
2,000 Noble Corp. ................................... 157,880
5,600 Pogo Producing Co. ............................ 278,264
4,000 Pride International, Inc. (a) ................. 139,560
24,100 Schlumberger Ltd. ............................. 1,666,274
2,400 Transocean, Inc. (a) .......................... 194,568
-------------
5,055,152
-------------
FINANCIALS: 5.4%
18,350 American International Group, Inc. ............ 1,197,337
15,800 Bank of New York Co., Inc. (The) .............. 555,370
400 Berkshire Hathaway, Inc. - Class B (a) ........ 1,180,800
12,884 Chubb Corp. ................................... 664,041
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20
SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY GROWTH FUND
- --------------------------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
Shares Value
- --------------------------------------------------------------------------------
FINANCIALS (CONTINUED)
6,000 Fifth Third Bancorp ........................... $ 242,520
17,400 Hanmi Financial Corp. ......................... 338,952
37,550 Marsh & McLennan Cos, Inc. .................... 1,151,659
7,100 MBIA, Inc. .................................... 423,373
10,600 State Street Corp. ............................ 692,392
-------------
6,446,444
-------------
HEALTH CARE: 26.7%
52,750 Affymetrix, Inc. (a) .......................... 1,511,287
6,000 Alcon, Inc. ................................... 610,260
11,500 Amgen, Inc. (a) ............................... 778,550
36,150 Biogen Idec, Inc. (a) ......................... 1,621,327
69,858 Boston Scientific Corp. (a) ................... 1,623,507
68,500 Eli Lilly & Co. ............................... 3,625,020
39,000 GlaxoSmithKline PLC - ADR ..................... 2,218,320
96,700 Laserscope (a) ................................ 2,297,592
74,500 Medtronic, Inc. ............................... 3,733,940
46,750 Novartis AG - ADR ............................. 2,688,593
73,350 Pfizer, Inc. .................................. 1,857,956
245,200 Possis Medical, Inc. (a) ...................... 2,393,152
16,200 Roche Holding AG - CHF ........................ 2,491,001
53,600 Sepracor, Inc. (a) ............................ 2,392,704
30,000 SurModics, Inc. (a) ........................... 1,066,800
23,100 Waters Corp. (a) .............................. 1,046,892
-------------
31,956,901
-------------
INDUSTRIALS: 11.0%
13,000 3M Co. ........................................ 1,110,590
61,100 AMR Corp. (a) ................................. 1,505,504
32,000 Avery Dennison Corp. .......................... 2,000,000
6,000 Caterpillar, Inc. ............................. 454,440
6,000 FedEx Corp. ................................... 690,780
10,750 Fluor Corp. ................................... 998,782
55,150 JetBlue Airways Corp. (a) ..................... 565,839
5,200 Kirby Corp. (a) ............................... 383,240
24,000 McDermott International, Inc. (a) ............. 1,459,200
56,400 Pall Corp. .................................... 1,702,152
139,800 Southwest Airlines Co. ........................ 2,267,556
-------------
13,138,083
-------------
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
21
SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY GROWTH FUND
- --------------------------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
Shares Value
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY: 29.8%
18,450 Accenture Ltd. - Class A ...................... $ 536,342
3,588 Adobe Systems, Inc. (a) ....................... 140,650
15,800 Agilent Technologies, Inc. (a) ................ 607,036
27,200 Akamai Technologies, Inc. (a) ................. 916,368
24,000 Altera Corp. (a) .............................. 524,160
6,000 AMIS Holdings, Inc. (a) ....................... 61,860
25,700 Applied Materials, Inc. ....................... 461,315
118,650 ASML Holding N.V. (a) ......................... 2,509,448
2,800 Autodesk, Inc. (a) ............................ 117,712
32,000 Avid Technology, Inc. (a) ..................... 1,233,600
18,000 Avocent Corp. (a) ............................. 484,920
28,500 Comverse Technology, Inc. (a) ................. 645,525
28,900 Corning, Inc. (a) ............................. 798,507
14,100 Cymer, Inc. (a) ............................... 728,829
104,300 EMC Corp. (a) ................................. 1,409,093
15,000 First Data Corp. .............................. 715,350
42,500 FormFactor, Inc. (a) .......................... 1,771,825
220 Freescale Semiconductor, Inc. - Class B (a) ... 6,967
50,000 Intel Corp. ................................... 999,000
20,000 Intersil Corp. ................................ 592,200
53,000 Intuit, Inc. (a) .............................. 2,871,010
11,300 KLA-Tencor Corp. .............................. 544,208
17,000 L.M. Ericsson Telephone Co. - ADR ............. 602,990
1,250 McAfee, Inc. (a) .............................. 32,612
72,400 Micron Technology, Inc. (a) ................... 1,228,628
80,700 Microsoft Corp. ............................... 1,948,905
5,000 Motorola, Inc. ................................ 106,750
381,700 Nortel Networks Corp. (a) ..................... 1,015,322
32,000 NVIDIA Corp. (a) .............................. 935,040
150,400 Oracle Corp. (a) .............................. 2,194,336
10,000 Paychex, Inc. ................................. 403,900
33,000 Rambus, Inc. (a) .............................. 1,281,390
9,150 Research In Motion Ltd. (a) ................... 701,164
12,050 Silicon Laboratories, Inc. (a) ................ 561,651
77,200 Symantec Corp. (a) ............................ 1,264,536
52,200 Texas Instruments, Inc. ....................... 1,811,862
12,000 Trimble Navigation Ltd. (a) ................... 568,560
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
22
SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY GROWTH FUND
- --------------------------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
Shares Value
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY (CONTINUED)
30,000 VeriSign, Inc. (a) ............................ $ 705,600
49,800 Yahoo!, Inc. (a) .............................. 1,632,444
-------------
35,671,615
-------------
MATERIALS: 2.0%
9,500 Minerals Technologies, Inc. ................... 543,590
9,400 Monsanto Co. .................................. 783,960
17,800 Praxair, Inc. ................................. 999,114
-------------
2,326,664
-------------
TELECOMMUNICATION SERVICES: 0.7%
35,450 Sprint Corp. .................................. 879,160
-------------
TOTAL COMMON STOCKS
(cost $100,868,612) .................................... 110,397,940
-------------
Principal
Amount
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 8.6%
$ 10,309,490 Dreyfus Institutional US Treasury
Money Market Fund ............................. $ 10,309,490
-------------
TOTAL SHORT-TERM INVESTMENTS
(cost $10,309,490) ..................................... 10,309,490
------------
TOTAL INVESTMENTS
(cost $111,178,102): 100.9% ............................ 120,707,430
Liabilities in Excess of Other Assets - (0.9)% (1,021,876)
-------------
TOTAL NET ASSETS: 100.0% ...................................... $ 119,685,554
=============
Percentages are stated as a percent of net assets.
ADR - American Depository Receipt.
CHF - Swiss Security.
(a) Non Income Producing.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
23
(IMAGE OMITTED) SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED)
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS: 88.5%
CONSUMER DISCRETIONARY: 6.1%
17,800 99 Cents Only Stores (a) ........................ $ 212,354
31,000 AC Moore Arts & Crafts, Inc. (a) ................ 578,150
6,000 Blue Nile, Inc. (a) ............................. 208,800
6,500 California Pizza Kitchen, Inc. (a) .............. 205,400
22,400 CarMax, Inc. (a) ................................ 790,944
26,800 DIRECTV Group, Inc. (The) (a) ................... 457,744
28,000 Gentex Corp. .................................... 410,480
31,000 Quiksilver, Inc. (a) ............................ 423,770
8,300 Yum! Brands, Inc. ............................... 428,944
------------
3,716,586
------------
CONSUMER STAPLES: 2.7%
72,100 American Italian Pasta Co. - Class A ............ 599,151
17,900 Cott Corp. (a) .................................. 267,784
54,100 Senomyx, Inc. (a) ............................... 774,171
------------
1,641,106
------------
ENERGY: 3.8%
1,800 Arch Coal, Inc. ................................. 170,982
29,000 Hanover Compressor Co. (a) ...................... 584,640
4,800 National Oilwell Varco, Inc. (a) ................ 331,056
1,900 Noble Corp. ..................................... 149,986
4,650 Pioneer Natural Resources Co. ................... 199,113
5,350 Pogo Producing Co. .............................. 265,842
18,200 Pride International, Inc. (a) ................... 634,998
------------
2,336,617
------------
FINANCIAL: 2.0%
16,200 Advance America Cash Advance Centers, Inc. ...... 239,598
5,824 Hanmi Financial Corp. ........................... 113,452
48,300 MarketAxess Holdings, Inc. (a) .................. 539,028
5,250 MBIA, Inc. ...................................... 313,057
------------
1,205,135
------------
HEALTH CARE: 21.8%
72,000 Abiomed, Inc. (a) ............................... 930,960
63,400 Affymetrix, Inc. (a) ............................ 1,816,410
4,000 Alcon, Inc. ..................................... 406,840
20,000 BioMarin Pharmaceuticals, Inc. (a) .............. 246,000
17,700 Boston Scientific Corp. (a) ..................... 411,348
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
24
SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
Shares Value
- --------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
100,950 Conceptus, Inc. (a) ............................. $ 1,387,053
110,000 Dendreon Corp. (a) .............................. 447,700
68,100 Laserscope (a) .................................. 1,618,056
117,500 Pharmacyclics, Inc. (a) ......................... 572,225
124,000 Possis Medical, Inc. (a) ........................ 1,210,240
10,400 Roche Holding AG - CHF .......................... 1,599,161
42,150 Sepracor, Inc. (a) .............................. 1,881,576
25,000 SurModics, Inc. (a) ............................. 889,000
------------
13,416,569
------------
INDUSTRIALS: 7.8%
34,000 Alaska Air Group, Inc. (a) ...................... 1,290,640
26,500 AMR Corp. (a) ................................... 652,960
10,050 Avery Dennison Corp. ............................ 628,125
4,000 Granite Construction, Inc. ...................... 185,440
81,325 JetBlue Airways Corp. (a) ....................... 834,394
30,100 Pall Corp. ...................................... 908,418
19,300 Southwest Airlines Co. .......................... 313,046
------------
4,813,023
------------
INFORMATION TECHNOLOGY: 42.9%
12,420 Adobe Systems, Inc. ............................. 486,864
7,500 Agilent Technologies, Inc. (a) .................. 288,150
38,000 Akamai Technologies, Inc. (a) ................... 1,280,220
16,000 Altera Corp. (a) ................................ 349,440
19,900 AMIS Holdings, Inc. (a) ......................... 205,169
92,050 ASML Holding N.V. (a) ........................... 1,946,858
32,000 Avid Technology, Inc. (a) ....................... 1,233,600
18,000 Avocent Corp. (a) ............................... 484,920
15,850 Comverse Technology, Inc. (a) ................... 359,002
20,700 Cymer, Inc. (a) ................................. 1,069,983
17,000 eBay, Inc. (a) .................................. 584,970
17,700 Emulex Corp. (a) ................................ 321,255
36,000 eSpeed, Inc. - Class A (a) ...................... 290,520
64,000 Faro Technologies, Inc. (a) ..................... 972,160
39,200 FormFactor, Inc. (a) ............................ 1,634,248
28,000 InPhonic, Inc. (a) .............................. 224,000
17,500 Intuit, Inc. (a) ................................ 947,975
19,000 KLA-Tencor Corp. ................................ 915,040
2,800 Macrovision Corp. (a) ........................... 64,120
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
25
SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
Shares Value
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY (CONTINUED)
5,600 McAfee, Inc. (a) ................................ $ 146,104
59,200 Micron Technology, Inc. (a) ..................... 1,004,624
253,500 Nortel Networks Corp. (a) ....................... 674,310
28,000 NVIDIA Corp. (a) ................................ 818,160
112,200 Opsware, Inc. (a) ............................... 949,212
35,250 RADVision Ltd. (a) .............................. 615,113
37,000 Rambus, Inc. (a) ................................ 1,436,710
5,800 Research In Motion Ltd. (a) ..................... 444,454
9,150 Silicon Laboratories, Inc. (a) .................. 426,481
72,000 SonicWALL, Inc. (a) ............................. 611,280
47,700 Stratasys, Inc. (a) ............................. 1,562,175
33,400 THQ, Inc. (a) ................................... 856,042
9,000 Trimble Navigation Ltd. (a) ..................... 426,420
28,700 VeriSign, Inc. (a) .............................. 675,024
63,100 Yahoo!, Inc. (a) ................................ 2,068,418
------------
26,373,021
------------
MATERIALS: 1.4%
11,400 Minerals Technologies, Inc. ..................... 652,308
2,400 Monsanto Co. .................................... 200,160
------------
852,468
------------
TOTAL COMMON STOCKS
(cost $48,402,390) ...................................... 54,354,525
------------
Principal
Amount
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 12.1%
$ 7,458,712 Dreyfus Institutional US
Treasury Money Market Fund ...................... $ 7,458,712
TOTAL SHORT-TERM INVESTMENTS
(cost $7,458,712) ....................................... 7,458,712
------------
TOTAL INVESTMENTS
(cost $55,861,102): 100.6% .............................. 61,813,237
Liabilities in Excess of Other Assets: (0.6)% .................. (358,704)
------------
TOTAL NET ASSETS: 100.0% ....................................... $ 61,454,533
============
Percentages are stated as a percent of net assets.
ADR - American Depository Receipt.
CHF - Swiss Security.
(a) Non Income Producing.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
26
(IMAGE OMITTED) STATEMENTS OF ASSETS AND LIABILITIES
--------------------------------------------------------
AT APRIL 30, 2006 - (UNAUDITED)
PRIMECAP
PRIMECAP PRIMECAP ODYSSEY
ODYSSEY ODYSSEY AGGRESSIVE
STOCK FUND GROWTH FUND GROWTH FUND
---------- ----------- -----------
ASSETS
Investments, at cost ............. $ 52,641,959 $111,178,102 $ 55,861,102
============ ============ ============
Investments, at value ............ $ 58,941,286 $120,707,430 $ 61,813,237
Receivables:
Dividends and interest ......... 44,969 72,886 30,795
Fund shares sold ............... 136,130 172,262 273,494
Other assets ..................... 35,475 49,948 29,971
------------ ------------ ------------
Total assets ................... 59,157,860 121,002,526 62,147,497
------------ ------------ ------------
LIABILITIES
Payable for securities purchased . 238,659 1,133,402 426,355
Payable for fund shares redeemed . -- -- 153,743
Due to advisor (Note 3) .......... 5,712 149,629 73,462
Accrued administration
fees (Note 3) .................. 9,991 18,986 9,735
Accrued trustee fees ............. 872 872 872
Other accrued expenses ........... 30,489 14,083 28,797
------------ ------------ ------------
Total liabilities .............. 355,723 1,316,972 692,964
------------ ------------ ------------
NET ASSETS ....................... $ 58,802,137 $119,685,554 $ 61,454,533
============ ============ ============
Number of shares issued and
outstanding (unlimited shares
authorized, $0.01 par value) ... 4,511,060 9,067,024 4,687,715
============ ============ ============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE ..... $ 13.04 $ 13.20 $ 13.11
============ ============ ============
COMPONENTS OF NET ASSETS
Paid-in capital .................. $ 52,253,917 $109,682,853 $ 54,697,493
Undistributed net investment
income (loss) .................. 100,157 128,658 (77,365)
Accumulated net realized gain
on investments ................. 148,736 344,715 882,270
Net unrealized appreciation
on investments ................. 6,299,327 9,529,328 5,952,135
------------ ------------ ------------
Net assets ..................... $ 58,802,137 $119,685,554 $ 61,454,533
============ ============ ============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
27
(IMAGE OMITTED) STATEMENTS OF OPERATIONS
--------------------------------------------------------
FOR THE SIX MONTHS ENDED APRIL 30, 2006 - (UNAUDITED)
PRIMECAP
PRIMECAP PRIMECAP ODYSSEY
ODYSSEY ODYSSEY AGGRESSIVE
STOCK FUND GROWTH FUND GROWTH FUND
---------- ----------- -----------
INVESTMENT INCOME
Income
Dividends (net of foreign taxes
withheld of $8,232, $13,020,
and $2,513, respectively) ........ $ 242,808 $ 312,229 $ 44,987
Interest and other income ......... 85,937 161,395 81,249
----------- ----------- -----------
Total income .................... 328,745 473,624 126,236
----------- ----------- -----------
Expenses
Advisory fees ..................... 128,540 238,074 118,453
Administration fees ............... 17,533 30,095 16,701
Registration fees ................. 10,922 10,715 10,921
Insurance expense ................. 10,578 12,036 9,234
Audit fees ........................ 9,969 9,969 9,969
Transfer agent fees ............... 9,697 11,177 9,642
Custody fees ...................... 7,719 9,416 7,753
Trustee fees ...................... 5,062 5,062 5,062
Miscellaneous ..................... 4,877 6,893 4,323
Fund accounting fees .............. 3,968 5,012 3,968
Legal fees ........................ 3,942 1,782 3,730
Reports to shareholders ........... 3,371 2,898 3,845
----------- ----------- -----------
Net expenses .................... 216,178 343,129 203,601
----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) .... 112,567 130,495 (77,365)
----------- ----------- -----------
CHANGE IN REALIZED AND
UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on:
Investments ....................... 182,366 369,882 1,074,597
Foreign currency transactions ..... 103 184 127
----------- ----------- -----------
Net realized gain ............... 182,469 370,066 1,074,724
----------- ----------- -----------
Net unrealized appreciation
on investments .................... 4,608,560 7,923,938 4,226,469
----------- ----------- -----------
Net realized and unrealized gain
on investments .................. 4,791,029 8,294,004 5,301,193
----------- ----------- -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS ....... $ 4,903,596 $ 8,424,499 $ 5,223,828
=========== =========== ===========
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
28
(IMAGE OMITTED) STATEMENT OF CHANGES IN NET ASSETS
PRIMECAP ODYSSEY STOCK FUND
--------------------------------------------------------
SIX MONTHS
ENDED PERIOD ENDED
APRIL 30, OCTOBER 31,
2006(1) 2005(2)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income (loss) ......................... $ 112,567 $ (17,484)
Net realized gain (loss) on investments .............. 182,469 (23,690)
Net unrealized appreciation on investments ........... 4,608,560 1,690,767
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 4,903,596 1,649,593
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ................................ (12,410) --
Realized gain on investments ......................... (5,043) --
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ................ (17,453) --
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ............................ 24,394,580 28,719,772
Proceeds from reinvestment of distribution ........... 15,443 --
Cost of shares redeemed .............................. (604,986) (293,419)
Redemption fee proceeds .............................. 1,000 11
------------ ------------
NET INCREASE FROM CAPITAL SHARE TRANSACTIONS ....... 23,806,037 28,426,364
------------ ------------
TOTAL INCREASE IN NET ASSETS ....................... 28,692,180 30,075,957
NET ASSETS
Beginning of period .................................. 30,109,957 34,000
------------ ------------
END OF PERIOD ........................................ $ 58,802,137 $ 30,109,957
============ ============
Accumulated net investment income .................... $ 100,157 $ --
============ ============
CHANGE IN SHARES
Shares sold .......................................... 1,934,003 2,646,899
Shares issued on reinvestment of distributions ....... 1,280 --
Shares redeemed ...................................... (48,166) (26,356)
------------ ------------
NET INCREASE ....................................... 1,887,117 2,620,543
============ ============
- -------------
(1) Unaudited.
(2) Commenced operations on November 1, 2004.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
29
(IMAGE OMITTED) STATEMENT OF CHANGES IN NET ASSETS
PRIMECAP ODYSSEY GROWTH FUND
--------------------------------------------------------
SIX MONTHS
ENDED PERIOD ENDED
APRIL 30, OCTOBER 31,
2006(1) 2005(2)
------------- -------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment income (loss) ........................ $ 130,495 $ (41,989)
Net realized gain on investments .................... 370,066 54,943
Net unrealized appreciation on investments .......... 7,923,938 1,605,390
------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 8,424,499 1,618,344
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ............................... (1,837) --
Realized gain on investments ........................ (38,375) --
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ................ (40,212) --
------------- -------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ........................... 70,515,013 45,005,048
Proceeds from reinvestment of distribution .......... 39,926 --
Cost of shares redeemed ............................. (5,819,551) (92,228)
Redemption fee proceeds ............................. 274 441
------------- -------------
NET INCREASE FROM CAPITAL SHARE TRANSACTIONS ....... 64,735,662 44,913,261
------------- -------------
TOTAL INCREASE IN NET ASSETS ....................... 73,119,949 46,531,605
NET ASSETS
Beginning of period ................................. 46,565,605 34,000
------------- -------------
END OF PERIOD ....................................... $ 119,685,554 $ 46,565,605
============= =============
Accumulated net investment income ................... $ 128,658 $ --
============= =============
CHANGE IN SHARES
Shares sold ......................................... 5,527,906 4,012,397
Shares issued on reinvestment of distributions ...... 3,259 --
Shares redeemed ..................................... (471,616) (8,322)
------------- -------------
NET INCREASE ....................................... 5,059,549 4,004,075
============= =============
- -----------------
(1) Unaudited.
(2) Commenced operations on November 1, 2004.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
30
(IMAGE OMITTED) STATEMENT OF CHANGES IN NET ASSETS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
--------------------------------------------------------
ENDED PERIOD ENDED
APRIL 30, OCTOBER 31,
2006(1) 2005(2)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS
Net investment loss ................................. $ (77,365) $ (126,506)
Net realized gain (loss) on investments ............. 1,074,724 (192,454)
Net unrealized appreciation on investments .......... 4,226,469 1,725,666
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 5,223,828 1,406,706
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold ........................... 34,360,673 23,059,769
Cost of shares redeemed ............................. (956,182) (1,677,835)
Redemption fee proceeds ............................. 1,790 1,784
------------ ------------
NET INCREASE FROM CAPITAL SHARE TRANSACTIONS ....... 33,406,281 21,383,718
------------ ------------
TOTAL INCREASE IN NET ASSETS ....................... 38,630,109 22,790,424
NET ASSETS
Beginning of period ................................. 22,824,424 34,000
------------ ------------
END OF PERIOD ....................................... $ 61,454,533 $ 22,824,424
============ ============
Accumulated net investment loss ..................... $ (77,365) $ --
============ ============
CHANGE IN SHARES
Shares sold ......................................... 2,731,146 2,181,304
Shares redeemed ..................................... (74,913) (153,222)
------------ ------------
NET INCREASE ....................................... 2,656,233 2,028,082
============ ============
<FN>
- -------------
(1) Unaudited.
(2) Commenced operations on November 1, 2004.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
31
(IMAGE OMITTED) FINANCIAL HIGHLIGHTS
PRIMECAP ODYSSEY STOCK FUND
--------------------------------------------------------
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD
THE FOLLOWING INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES THERETO APPEARING ELSEWHERE IN THIS SEMIANNUAL REPORT.
SIX MONTHS
ENDED PERIOD ENDED
APRIL 30, OCTOBER 31,
2006(1) 2005(2)
--------- ----------
Net asset value, beginning of period ............... $ 11.48 $ 10.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ...................... 0.03 (0.01)
Net realized and unrealized gain on investments ... 1.53 1.49
--------- ---------
Total from investment operations ................... 1.56 1.48
--------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income .............. 0.00(5) 0.00
Distributions from realized gain .................. 0.00(5) 0.00
--------- ---------
Total distributions ................................ 0.00 0.00
--------- ---------
Redemption fee proceeds ............................ 0.00(5) 0.00(5)
--------- ---------
Net asset value, end of period ..................... $ 13.04 $ 11.48
========= =========
Total return ....................................... 13.65%(4) 14.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) .............. $ 58.8 $ 30.1
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed
or recouped ...................................... 1.01%(3) 1.80%
After fees waived and expenses absorbed
or recouped ...................................... 1.01%(3) 1.25%
RATIO OF NET INVESTMENT INCOME
(LOSS) TO AVERAGE NET ASSETS ..................... 0.53%(3) (0.11%)
Portfolio turnover rate ............................ 1.18%(4) 12.46%
<FN>
- -----------
(1) Unaudited.
(2) Commenced operations on 11/1/2004. Period began on 11/1/2004 and ended on 10/31/2005.
(3) Annualized.
(4) Not Annualized.
(5) Amount represents less than $0.01 per share.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
32
(IMAGE OMITTED) FINANCIAL HIGHLIGHTS
PRIMECAP ODYSSEY GROWTH FUND
--------------------------------------------------------
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD
THE FOLLOWING INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES THERETO APPEARING ELSEWHERE IN THIS SEMIANNUAL REPORT.
SIX MONTHS
ENDED PERIOD ENDED
APRIL 30, OCTOBER 31,
2006(1) 2005(2)
---------- ----------
Net asset value, beginning of period ................ $ 11.62 $ 10.00
---------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ....................... 0.02 (0.01)
Net realized and unrealized gain on investments .... 1.57 1.63
---------- ---------
Total from investment operations ................... 1.59 1.62
---------- ---------
LESS DISTRIBUTIONS:
Dividends from net investment income ............... 0.00(5) 0.00
Distributions from realized gain ................... (0.01) 0.00
---------- ---------
Total distributions ................................. (0.01) 0.00
---------- ---------
Redemption fee proceeds ............................. 0.00(5) 0.00(5)
---------- ---------
Net asset value, end of period ..................... $ 13.20 $ 11.62
========== =========
Total return ........................................ 13.67%(4) 16.20%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) ............... $ 119.7 $ 46.6
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed
or recouped ....................................... 0.86%(3) 1.79%
After fees waived and expenses absorbed
or recouped ....................................... 0.86%(3) 1.25%
RATIO OF NET INVESTMENT INCOME
(LOSS) TO AVERAGE NET ASSETS ....................... 0.33%(3) (0.27%)
Portfolio turnover rate ............................ 1.73%(4) 8.84%
<FN>
- --------------
(1) Unaudited.
(2) Commenced operations on 11/1/2004. Period began on 11/1/2004 and ended on 10/31/2005.
(3) Annualized.
(4) Not Annualized.
(5) Amount represents less than $0.01 per share.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
33
(IMAGE OMITTED) FINANCIAL HIGHLIGHTS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
--------------------------------------------------------
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD
THE FOLLOWING INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES THERETO APPEARING ELSEWHERE IN THIS SEMIANNUAL REPORT.
SIX MONTHS
ENDED PERIOD ENDED
APRIL 30, OCTOBER 31,
2006(1) 2005(2)
--------- ---------
Net asset value, beginning of period ................ $ 11.24 $ 10.00
--------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ....................... (0.02) (0.06)
Net realized and unrealized gain on investments .... 1.89 1.30
--------- ---------
Total from investment operations .................... 1.87 1.24
--------- ---------
Redemption fee proceeds ............................. 0.00(5) 0.00(5)
--------- ---------
Net asset value, end of period ...................... $ 13.11 $ 11.24
========= =========
Total return ........................................ 16.64%(4) 12.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) ............... $ 61.5 $ 22.8
RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses absorbed
or recouped ....................................... 1.03%(3) 1.82%
After fees waived and expenses absorbed
or recouped ....................................... 1.03%(3) 1.25%
RATIO OF NET INVESTMENT INCOME
(LOSS) TO AVERAGE NET ASSETS ....................... (0.39%)(3) (0.82%)
Portfolio turnover rate ............................. 7.33%(4) 7.38%
<FN>
- --------------
(1) Unaudited.
(2) Commenced operations on 11/1/2004. Period began on 11/1/2004 and ended on 10/31/2005.
(3) Annualized.
(4) Not Annualized.
(5) Amount represents less than $0.01 per share.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
34
(IMAGE OMITTED) NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------
FOR THE SIX MONTHS ENDED APRIL 30, 2006 - (UNAUDITED)
(1) ORGANIZATION
PRIMECAP Odyssey Funds (the "Trust") was organized on June 8, 2004 as a Delaware
statutory trust and is authorized to issue unlimited shares of beneficial
interest. The Trust is registered under the Investment Company Act of 1940 as an
open-end management investment company comprised of three diversified series:
PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey
Aggressive Growth Fund (the "Funds"). The Funds began operations on November 1,
2004.
Each of the Fund's investment objective is to seek to provide long-term capital
appreciation. The Funds seek to achieve this objective by emphasizing those
companies with above average earnings growth potential that is not reflected in
their current market prices.
(2) SIGNIFICANT ACCOUNTING POLICIES
The Funds consistently follow the accounting policies set forth below which are
in conformity with accounting principles generally accepted in the United States
of America.
A. SECURITY VALUATION.
Securities traded on a national securities exchange are valued at
the last reported sales price at the close of regular trading on
each day the exchanges are open for trading. Securities listed on
the NASDAQ National Market System for which market quotations are
readily available are valued using the NASDAQ Official Closing
Price. Securities traded on an exchange for which there have been
no sales are valued at the mean between the bid and asked price.
Securities for which quotations are not readily available are
stated at their respective fair values as determined in good
faith in accordance with procedures approved by the Board of
Trustees.
Investments in other funds are valued at their respective net
asset values as determined by those funds, in accordance with the
Investment Company Act of 1940.
Foreign securities are recorded in the financial statements after
translation to U.S. dollars based on the applicable exchange rate
at the end of the period. The Funds do not isolate that portion
of the results of operations arising as a result of changes in
the currency exchange rate from the fluctuations arising as a
result of changes in the market prices of investments during the
period.
Interest income is translated at the exchange rates which existed
at the dates the income was accrued. Exchange gains and losses
related to interest income are included in interest income on the
accompanying Statement of Operations.
B. SHARES VALUATION.
The net asset value ("NAV") per share of a Fund is calculated by
dividing the sum of the value of the securities held by the Fund,
plus cash or other assets, minus all liabilities (including
estimated accrued expenses) by the total number of shares
outstanding of the Fund. The result is rounded to the nearest
cent. The Funds' shares will not be priced on the days on which
the NYSE is closed for trading.
35
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
C. FOREIGN CURRENCY.
Values of investments denominated in foreign currencies are
converted into U.S. dollars using the spot market rate of
exchange at the time of valuation. Purchases and sales of
investments and dividend and interest income are translated into
U.S. dollars using the spot market rate of exchange prevailing on
the respective dates of such translations. The gain or loss
resulting from changes in foreign exchange rates is included with
net realized and unrealized gain or loss from investments, as
appropriate. Foreign securities and currency transactions may
involve certain considerations and risks not typically associated
with those of domestic origin.
D. FEDERAL INCOME TAXES.
Each Fund has elected to be treated as a "regulated investment
company" under Subchapter M of the Internal Revenue Code. The
Funds intend to distribute substantially all of their taxable
income and any capital gains in excess of applicable capital loss
carryforwards. Accordingly, no provision for Federal income taxes
has been made in the accompanying financial statements.
The Funds may be subject to foreign taxes on income, gains on
investments, or currency repatriation, a portion of which may be
recoverable. The Funds will accrue such taxes and recoveries as
applicable based upon their current interpretations of the tax
rules and regulations that exist in the markets in which they
invest.
E. SECURITY TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS.
Security transactions are accounted for on the trade date.
Dividend income and distributions to shareholders are recorded on
the ex-dividend date, and interest income is recognized on the
accrual basis. Realized gains and losses are evaluated on the
basis of identified costs.
F. INDEMNIFICATION OBLIGATIONS.
Under the Funds' organizational documents, its current and former
officers and trustees are indemnified against certain liabilities
arising out of the performance of their duties to the Funds. In
addition, in the normal course of business, the Funds enter into
contracts that contain a variety of representations and
warranties that provide general indemnifications. The Funds'
maximum exposure under these arrangements is unknown as this
would involve future claims that may be made against the Funds
that have not yet occurred or that would be covered by other
parties.
G. USE OF ESTIMATES.
The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues
and expenses during the reporting period. Actual results could
differ from these estimates.
36
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
H. ORGANIZATIONAL EXPENSES.
The Investment Advisor has agreed to bear all organizational
expenses for the Trust. These organizational expenses included
offering costs, administration, legal, and audit fees.
(3) FEES AND TRANSACTIONS WITH RELATED PARTIES
The Trust has entered into an investment management agreement with PRIMECAP
Management Company (the "Investment Advisor"). Under the terms of the agreement,
each of the Funds will pay a fee equal to the following annual percentages of
average net assets:
ASSETS IN
FOR THE FIRST EXCESS OF
$100,000,000 $100,000,000
PER FUND PER FUND
-------- --------
PRIMECAP Odyssey
Stock Fund ................................... 0.60% 0.55%
PRIMECAP Odyssey
Growth Fund .................................. 0.60% 0.55%
PRIMECAP Odyssey
Aggressive Growth Fund ....................... 0.60% 0.55%
The Investment Advisor has contractually agreed to reimburse each Fund through
October 31, 2007 to the extent necessary so that its ratio of operating expenses
to average net assets will not exceed the following levels. The Investment
Advisor will not seek reimbursement for fees waived or expenses paid under this
agreement.
PRIMECAP Odyssey Stock Fund .......................... 1.25%
PRIMECAP Odyssey Growth Fund ......................... 1.25%
PRIMECAP Odyssey Aggressive Growth Fund .............. 1.25%
THESE PERCENTAGES ARE BASED ON THE AVERAGE DAILY NET ASSETS OF THE FUNDS.
U.S. Bancorp Fund Services, LLC is the Administrator and Fund Accounting Agent
to the Funds pursuant to a fund administration servicing agreement and fund
accounting servicing agreement. The Funds will pay U.S. Bancorp Fund Services,
LLC, under these agreements, an annual fee equal to 0.10% of the first $250
million of average daily net assets, 0.07% of the next $750 million, and 0.05%
of assets over $1 billion, payable monthly and subject to a minimum annual fee
of $120,000 on a trust level. The Trust's expenses for fund administration and
accounting will be allocated among the Funds based on average daily net assets,
unless the minimum annual fee applies, in which case they will be allocated
equally among the Funds. U.S. Bancorp Fund Services, LLC also serves as the
Transfer Agent. Fees charged for these services are based on the number of
shareholder accounts and activities.
Quasar Distributors, LLC serves as the Distributor to the Funds pursuant to a
Distribution Agreement.
37
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED APRIL 30, 2006 - (UNAUDITED), (CONTINUED)
(4) INVESTMENT TRANSACTIONS
The cost of purchases and the proceeds from sales of securities, excluding U.S.
Government securities and short-term investments, for the six months ended April
30, 2006 were as follows:
FUND PURCHASES SALES
---- --------- -----
PRIMECAP Odyssey Stock Fund .................... $22,009,722 $ 465,482
PRIMECAP Odyssey Growth Fund ................... $60,545,802 $ 1,265,283
PRIMECAP Odyssey Aggressive Growth Fund ........ $30,421,882 $ 2,667,051
(5) DISTRIBUTION TO SHAREHOLDERS
Net investment income and net realized gains differ for financial statement and
tax purposes due to differing treatments of deferred wash sale losses.
As of April 30, 2006, the components of distributable earnings/(accumulated
losses) on a tax basis were as follows:
PRIMECAP
PRIMECAP PRIMECAP ODYSSEY
ODYSSEY ODYSSEY AGGRESSIVE
STOCK FUND GROWTH FUND GROWTH FUND
---------- ----------- -----------
Cost of investments
for tax purposes ....... $ 52,670,648 $ 111,178,102 $ 55,902,707
============= ============= =============
Gross tax unrealized
appreciation ........... 7,201,339 11,963,977 8,443,119
Gross tax unrealized
depreciation ........... (930,701) (2,434,649) (2,532,589)
------------- ------------- -------------
Net tax unrealized
appreciation ........... $ 6,270,638 $ 9,529,328 $ 5,910,530
============= ============= =============
Because tax adjustments are calculated annually, the above table reflects the
tax adjustments outstanding at the Fund's previous fiscal year end. For the
previous fiscal year's Federal income tax information, please refer to the Notes
to the Financial Statements section in the Funds' most recent Annual Report.
As of October 31, 2005, the PRIMECAP Odyssey Aggressive Growth Fund has a
capital loss carryforward available to offset future capital gains, if any, of
$150,848, which expires on October 31, 2013.
38
(IMAGE OMITTED) ADDITIONAL NOTES - (UNAUDITED)
--------------------------------------------------------
PROXY VOTING PROCEDURES
The Investment Advisor votes proxies relating to portfolio securities in
accordance with procedures that have been approved by the Trust's Board of
Trustees. You may obtain a description of these procedures, free of charge, by
calling toll-free 1-800-729-2307. This information is also available through the
Securities and Exchange Commission's ("SEC") website at http://www.sec.gov.
FORM N-Q DISCLOSURE
The Trust files its complete schedules of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The Trust's Form
N-Q is available on the SEC's website at http://www.sec.gov. The Trust's Form
N-Q may be reviewed and copied at the Commission's Public Reference Room in
Washington, DC, and information on the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330. This information is also available,
without charge, by calling toll-free 1-800-729-2307.
39
(IMAGE OMITTED) MANAGEMENT
--------------------------------------------------------
PORTFOLIO MANAGERS
PRIMECAP Management Company has five portfolio managers who together have more
than 150 years of investment experience. Each of these five individuals manages
a portion of the PRIMECAP Odyssey Growth Fund and the PRIMECAP Odyssey Stock
Fund. The PRIMECAP Odyssey Aggressive Growth Fund is primarily managed by
Messrs. Schow, Kolokotrones, Fried, and Mordecai. A small portion of each Fund's
assets may be managed by individuals in the Advisor's research department. The
portfolio managers primarily responsible for overseeing the Funds' investments
are:
NAME YEARS OF EXPERIENCE
---------------------------------------------------
Howard B. Schow 49
Mitchell J. Milias 41
Theo A. Kolokotrones 35
Joel P. Fried 21
Alfred W. Mordecai 8
---------------------------------------------------
OFFICERS AND TRUSTEES
The Trust's officers, who administer the Funds' daily operations, are appointed
by the Board of Trustees. The Trustees are responsible for the overall
management of the Trust, including establishing the Funds' policies and general
supervision and review of their investment activities. The Statement of
Additional Information includes additional information about the Trust's
Trustees and is available, without charge, by calling 1-800-729-2307.
EXECUTIVE OFFICERS. The table below sets forth certain information about each of
the Trust's executive officers.
- ---------------------------------------------------------------------------------------------------
POSITION(S) TERM OF OFFICE;
NAME, ADDRESS HELD LENGTH OF PRINCIPAL OCCUPATION(S)
(YEAR OF BIRTH) WITH TRUST TIME SERVED DURING PAST 5 YEARS
- ---------------------------------------------------------------------------------------------------
Howard B. Schow Co-Chief Indefinite; Chairman and Director, Portfolio Manager,
225 South Lake Ave., Executive Since 09/04 Chief Investment Officer, and Principal
Suite 400, Pasadena, Officer PRIMECAP Management Company
CA 91101-3005
(1927)
- ---------------------------------------------------------------------------------------------------
Theo A. Kolokotrones Co-Chief Indefinite; President, Director, Portfolio Manager,
225 South Lake Ave., Executive Since 09/04 and Principal
Suite 400, Pasadena, Officer PRIMECAP Management Company
CA 91101-3005
(1946)
- ---------------------------------------------------------------------------------------------------
40
MANAGEMENT
- --------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------
POSITION(S) TERM OF OFFICE;
NAME, ADDRESS HELD LENGTH OF PRINCIPAL OCCUPATION(S)
(YEAR OF BIRTH) WITH TRUST TIME SERVED DURING PAST 5 YEARS
- ---------------------------------------------------------------------------------------------------
Joel P. Fried Co-Chief Indefinite; Executive Vice President, Director, Portfolio
225 South Lake Ave., Executive Since 09/04 Manager, and Principal
Suite 400, Pasadena, Officer and PRIMECAP Management Company
CA 91101-3005 Trustee
(1962)
- ---------------------------------------------------------------------------------------------------
David H. Van Slooten Chief Financial Indefinite; Senior Vice President, Portfolio Manager,
225 South Lake Ave., Officer and Since 06/04 Financial Analyst, and Principal
Suite 400, Pasadena, Secretary PRIMECAP Management Company
CA 91101-3005
(1963)
- ---------------------------------------------------------------------------------------------------
Baltej S. Kochar Vice President Indefinite; Vice President and Financial Analyst,
225 South Lake Ave., and Chief Since 10/04 PRIMECAP Management Company (1/04 -
Suite 400, Pasadena, Administrative Present); Chief Executive Officer,
CA 91101-3005 Officer The Share Group, Inc. (9/01 - 1/03);
(1970) Chief Executive Officer, BetterTomorrow.org
(6/00 - 9/01); President, GreaterGood.com
(4/98 - 1/00)
- ---------------------------------------------------------------------------------------------------
Karen Chen Vice President ofIndefinite; Chief Compliance Officer, Director of
225 South Lake Ave., Compliance and Since 10/04 Compliance and Reporting, PRIMECAP
Suite 400, Pasadena, Chief Compliance Management Company (10/04 - Present);
CA 91101-3005 Officer Team Lead - Legal and Compliance,
(1973) Pacific Investment Management Company
(7/02 - 9/04 and 11/97 - 7/99);
Consultant, Trinity Consulting
(9/01 - 2/02); Treasury Intern
(6/00 - 10/00)
- ---------------------------------------------------------------------------------------------------
41
MANAGEMENT
- --------------------------------------------------------------------------------
"INDEPENDENT" TRUSTEES. The table below sets forth certain information about
each of the Trustees of the Trust who is not an "interested person" of the Trust
as defined in the 1940 Act ("Independent Trustees").
- -------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS
IN
TERM OF FUND OTHER
POSITION(S) OFFICE; PRINCIPAL COMPLEX DIRECTOR-
NAME, ADDRESS HELD LENGTH OF OCCUPATION(S) OVERSEEN BY SHIPS HELD
(YEAR OF BIRTH) WITH TRUST TIME SERVED DURING PAST 5 YEARS TRUSTEE BY TRUSTEE
- -------------------------------------------------------------------------------------------------------
Benjamin F. Hammon Chairman of Indefinite; Retired; Director, 3 None
225 South Lake Ave., the Board Since 09/04 Institutional Equity
Suite 400, Pasadena, CA and Trustee Sales, Salomon Smith
91101-3005 Barney Inc. (1997-1998)
(1935)
- -------------------------------------------------------------------------------------------------------
Wayne H. Smith Chairman of Indefinite; President, Wayne H. 3 None
225 South Lake Ave., the Audit Since 09/04 Smith Consulting, Inc.
Suite 400, Pasadena, Committee (2002-Present); Vice
CA 91101-3005 and Trustee President, Financial
(1941) Services, Avery
Dennison Corporation
(2001-2002);
Vice President,
Financial Services,
and Treasurer,
Avery Dennison
Corporation
(1999-2001)
- -------------------------------------------------------------------------------------------------------
Stephen M. Rucker Trustee Indefinite; Retired; Executive 3 None
225 South Lake Ave., Since 09/04 Vice President,
Suite 400, Pasadena, Credit Suisse
CA 91101-3005 First Boston
(1938) (1999-2001)
- -------------------------------------------------------------------------------------------------------
42
MANAGEMENT
- --------------------------------------------------------------------------------
"INTERESTED" TRUSTEES. The table below sets forth certain information about each
of the Trustees of the Trust who is an "interested person" of the Trust as
defined by the 1940 Act.
- -------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS
IN
TERM OF FUND OTHER
POSITION(S) OFFICE; PRINCIPAL COMPLEX DIRECTOR-
NAME, ADDRESS HELD LENGTH OF OCCUPATION(S) OVERSEEN BY SHIPS HELD
(YEAR OF BIRTH) WITH TRUST TIME SERVED DURING PAST 5 YEARS TRUSTEE BY TRUSTEE
- -------------------------------------------------------------------------------------------------------
Joel P. Fried* Co-Chief Indefinite; Executive Vice 3 None
225 South Lake Ave., Executive Since 09/04 President,
Suite 400, Pasadena, Officer and Director, Portfolio
CA 91101-3005 Trustee Manager, and Principal
(1962) PRIMECAP Management
Company
- -------------------------------------------------------------------------------------------------------
<FN>
* Mr. Fried is an "interested person" of the Trust, as defined by the 1940
Act, because of his employ- ment with PRIMECAP Management Company, the
investment advisor to the Trust.
</FN>
43
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Investment Advisor
PRIMECAP MANAGEMENT COMPANY
225 South Lake Avenue, Suite 400
Pasadena, California 91101
o
Distributor
QUASAR DISTRIBUTORS, LLC
615 East Michigan Street, 3rd Floor
Milwaukee, Wisconsin 53202
o
Custodian
MELLON BANK, N.A.
One Mellon Center
Pittsburgh, Pennsylvania 15258
o
Transfer Agent
U.S. BANCORP FUND SERVICES, LLC
615 East Michigan Street, 3rd Floor
Milwaukee, Wisconsin 53202
o
Administrator
U.S. BANCORP FUND SERVICES, LLC
2020 East Financial Way, Suite 100
Glendora, California 91741
o
Legal Counsel
PAUL, HASTINGS, JANOFSKY & WALKER LLP
515 South Flower Street
Los Angeles, California 90071
o
Independent Registered Public Accounting Firm
PRICEWATERHOUSECOOPERS LLP
Three Embarcadero Centre
San Francisco, California 94111
THIS REPORT IS INTENDED FOR THE SHAREHOLDERS OF THE PRIMECAP ODYSSEY FUNDS AND
MAY NOT BE USED AS SALES LITERATURE UNLESS PRECEDED OR ACCOMPANIED BY A CURRENT
PROSPECTUS.
PAST PERFORMANCE RESULTS SHOWN IN THIS REPORT SHOULD NOT BE CONSIDERED A
REPRESENTATION OF FUTURE PERFORMANCE. SHARE PRICE AND RETURNS WILL FLUCTUATE SO
THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
STATEMENTS AND OTHER INFORMATION HEREIN ARE DATED AND ARE SUBJECT TO CHANGE.
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to registrants who are not listed issuers (as defined in Rule
10A-3 under the Securities Exchange Act of 1934).
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments is included as part of the report to shareholders filed
under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASES.
Not applicable to open-end investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of trustees.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant's Chief Financial Officer and Co-Chief Executive Officers
have reviewed the Registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the
"Act")) as of a date within 90 days of the filing of this report, as
required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b)
under the Securities Exchange Act of 1934. Based on their review, such
officers have concluded that the disclosure controls and procedures are
effective in ensuring that information required to be disclosed in this
report is appropriately recorded, processed, summarized and reported and
made known to them by others within the Registrant and by the Registrant's
service provider.
(b) There were no changes in the Registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) 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.
ITEM 12. EXHIBITS.
(a) (1) ANY CODE OF ETHICS OR AMENDMENT THERETO, THAT IS SUBJECT OF THE
DISCLOSURE REQUIRED BY ITEM 2, TO THE EXTENT THAT THE REGISTRANT INTENDS
TO SATISFY ITEM 2 REQUIREMENTS THROUGH FILING AN EXHIBIT. Not applicable.
(2) CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF
2002. Filed herewith.
(3) ANY WRITTEN SOLICITATION TO PURCHASE SECURITIES UNDER RULE 23C-1 UNDER
THE ACT SENT OR GIVEN DURING THE PERIOD COVERED BY THE REPORT BY OR ON
BEHALF OF THE REGISTRANT TO 10 OR MORE PERSONS. Not applicable to open-end
investment companies.
(B) CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.
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) PRIMECAP ODYSSEY FUNDS
By (Signature and Title) /S/ JOEL P. FRIED
------------------------------------------------
Joel P. Fried, Co-Chief Executive Officer
Date: July 6, 2006
By (Signature and Title) /S/ HOWARD B. SCHOW
------------------------------------------------
Howard B. Schow, Co-Chief Executive Officer
Date: July 6, 2006
By (Signature and Title) /S/ THEO A. KOLOKOTRONES
------------------------------------------------
Theo A. Kolokotrones, Co-Chief Executive Officer
Date: July 6, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /S/ JOEL P. FRIED
------------------------------------------------
Joel P. Fried, Co-Chief Executive Officer
Date: July 6, 2006
By (Signature and Title)* /S/ HOWARD B. SCHOW
------------------------------------------------
Howard B. Schow, Co-Chief Executive Officer
Date: July 6, 2006
By (Signature and Title)* /S/ THEO A. KOLOKOTRONES
------------------------------------------------
Theo A. Kolokotrones, Co-Chief Executive Officer
Date: July 6, 2006
By (Signature and Title)* /S/ DAVID H. VAN SLOOTEN
------------------------------------------------
David H. Van Slooten, Chief Financial Officer
Date: July 6, 2006
* PRINT THE NAME AND TITLE OF EACH SIGNING OFFICER UNDER HIS OR HER SIGNATURE.