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 811-04719
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The Westwood Funds
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(Exact name of registrant as specified in charter)
One Corporate Center
Rye, New York 10580-1422
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(Address of principal executive offices) (Zip code)
Bruce N. Alpert
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1422
--------------------------------------------------
(Name and address of agent for service)
registrant's telephone number, including area code: 1-800-422-3554
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Date of fiscal year end: September 30
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Date of reporting period: March 31, 2005
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
THE
WESTWOOD
FUNDS
EQUITY FUND
BALANCED FUND
INTERMEDIATE BOND FUND
SMALLCAP EQUITY FUND
REALTY FUND
MIGHTY MITES(SM) FUND
SEMI-ANNUAL REPORT
MARCH 31, 2005
THE WESTWOOD FUNDS
==================
EQUITY FUND SMALLCAP EQUITY FUND
BALANCED FUND REALTY FUND
INTERMEDIATE BOND FUND MIGHTY MITES(SM) FUND
CLASS AAA SHARES CLASS A SHARES
----------------------------------------------------- -----------------------------------------------------
Average Annual Returns -- March 31, 2005 (a)(e) Average Annual Returns -- March 31, 2005 (a)(b)(e)
Since Since
1 Year 5 Year 10 Year Inception 1 Year 5 Year 10 Year Inception
--------------------------------------- ---------------------------------------
Equity ....................... 14.69% 2.58% 12.34% 11.77% 9.83% 1.48% 11.57% 11.31%
Balanced ..................... 9.06 4.23 10.57 10.45 4.38 3.11 9.85 9.81
Intermediate Bond ............ (0.21) 5.90 6.23 6.06 (4.28) 4.97 5.77 5.71
SmallCap Equity .............. 17.47 (8.55) N/A 6.13 12.47 (9.34) N/A 5.48
Realty ....................... 8.38 18.03 N/A 9.97 3.78 16.83 N/A 9.24
Mighty Mites(SM) ............. 11.18 8.79 N/A 13.98 6.43 7.72 N/A 13.17
CLASS B SHARES CLASS C SHARES
----------------------------------------------------- -----------------------------------------------------
Average Annual Returns -- March 31, 2005 (a)(c)(e) Average Annual Returns -- March 31, 2005 (a)(d)(e)
Since Since
1 Year 5 Year 10 Year Inception 1 Year 5 Year 10 Year Inception
--------------------------------------- ---------------------------------------
Equity ....................... 8.82% 1.62% 11.85% 11.47% 12.79% 1.97% 11.84% 11.46%
Balanced ..................... 3.26 3.28 10.13 10.01 7.17 3.72 10.18 10.05
Intermediate Bond ............ (5.91) 4.90 5.89 5.81 (1.67) 5.39 5.97 5.87
SmallCap Equity .............. 11.55 (9.44) N/A 5.75 14.97 (8.91) N/A 5.87
Realty ....................... 2.66 17.39 N/A 9.71 6.58 17.74 N/A 9.79
Mighty Mites(SM) ............. 5.30 7.88 N/A 13.51 9.34 8.20 N/A 13.54
(a) TOTAL RETURNS AND AVERAGE ANNUAL RETURNS REFLECT CHANGES IN SHARE PRICE
AND REINVESTMENT OF DIVIDENDS AND ARE NET OF EXPENSES. OF COURSE, RETURNS
REPRESENT PAST PERFORMANCE AND DO NOT GUARANTEE FUTURE RESULTS. INVESTMENT
RETURNS AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE. WHEN
SHARES ARE REDEEMED THEY MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL
COST. FOR THE INTERMEDIATE BOND, SMALLCAP EQUITY, REALTY AND MIGHTY
MITES(SM) FUNDS, THE ADVISER REIMBURSED EXPENSES TO LIMIT THE EXPENSE
RATIO. HAD SUCH LIMITATIONS NOT BEEN IN PLACE, RETURNS WOULD HAVE BEEN
LOWER. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE
DATA PRESENTED. VISIT WWW.GABELLI.COM FOR PERFORMANCE INFORMATION AS OF
THE MOST RECENT MONTH END. INVESTORS SHOULD CONSIDER THE INVESTMENT
OBJECTIVES, RISKS AND CHARGES AND EXPENSES OF THE FUND CAREFULLY BEFORE
INVESTING. THE PROSPECTUS CONTAINS MORE COMPLETE INFORMATION ABOUT THIS
AND OTHER MATTERS AND SHOULD BE READ CAREFULLY BEFORE INVESTING.
(b) INCLUDES THE EFFECT OF THE MAXIMUM 4.0% SALES CHARGE AT THE BEGINNING OF
THE PERIOD.
(c) INCLUDES THE EFFECT OF THE APPLICABLE CONTINGENT DEFERRED SALES CHARGE
UPON REDEMPTION OF CLASS B SHARES WITHIN 72 MONTHS.
(d) INCLUDES THE EFFECT OF THE APPLICABLE CONTINGENT DEFERRED SALES CHARGE
UPON REDEMPTION OF CLASS C SHARES WITHIN 12 MONTHS.
(e) THE PERFORMANCE OF THE CLASS AAA SHARES IS USED TO CALCULATE PERFORMANCE
FOR THE PERIODS PRIOR TO THE ISSUANCE OF CLASS A SHARES, CLASS B SHARES
AND CLASS C SHARES. THE PERFORMANCE FOR THE CLASS B SHARES AND CLASS C
SHARES WOULD HAVE BEEN LOWER DUE TO THE ADDITIONAL EXPENSES ASSOCIATED
WITH THESE CLASSES OF SHARES. THE INCEPTION DATES FOR THE CLASS AAA SHARES
AND THE INITIAL ISSUANCE DATES FOR THE CLASS A SHARES, CLASS B SHARES AND
CLASS C SHARES AFTER WHICH SHARES REMAINED CONTINUOUSLY OUTSTANDING ARE
LISTED BELOW.
Class AAA Shares Class A Shares Class B Shares Class C Shares
---------------- -------------- -------------- --------------
Equity ....................... 01/02/87 01/28/94 03/27/01 02/13/01
Balanced ..................... 10/01/91 04/06/93 03/27/01 09/25/01
Intermediate Bond ............ 10/01/91 07/26/01 03/27/01 10/22/01
SmallCap Equity .............. 04/15/97 11/26/01 03/27/01 11/26/01
Realty ....................... 09/30/97 05/09/01 11/26/01 11/26/01
Mighty Mites(SM) ............. 05/11/98 11/26/01 06/06/01 08/03/01
THE WESTWOOD FUNDS
DISCLOSURE OF FUND EXPENSES (UNAUDITED)
For the Six Month Period from
October 1, 2004 through March 31, 2005 EXPENSE TABLE
- --------------------------------------------------------------------------------
We believe it is important for you to understand the impact of fees and expenses
regarding your investment. All mutual funds have operating expenses. As a
shareholder of a fund, you incur ongoing costs, which include costs for
portfolio management, administrative services, and shareholder reports (like
this one), among others. Operating expenses, which are deducted from a fund's
gross income, directly reduce the investment return of a fund. When a fund's
expenses are expressed as a percentage of its average net assets, this figure is
known as the expense ratio. The following examples are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The Expense Table below illustrates your Fund's costs in two ways:
ACTUAL FUND RETURN: This section provides information about actual account
values and actual expenses. You may use this section to help you to estimate the
actual expenses that you paid over the period after any fee waivers and expense
reimbursements. The "Ending Account Value" shown is derived from the Fund's
ACTUAL return during the past six months, and the "Expenses Paid During Period"
shows the dollar amount that would have been paid by an investor who started
with $1,000 in the Fund. You may use this information, together with the amount
you invested, to estimate the expenses that you paid over the period.
To do so, 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
given for your Fund under the heading "Expenses Paid During Period" to estimate
the expenses you paid during this period.
HYPOTHETICAL 5% RETURN: This section provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio. It assumes a hypothetical annualized return of 5% before expenses during
the period shown. In this case -- because the hypothetical return used is NOT
the Fund's actual return -- the results do not apply to your investment and you
cannot use the hypothetical account value and expense to estimate the actual
ending account balance or expenses you paid for the period. This example is
useful in making comparisons of the ongoing costs of investing in the Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs such as sales
charges (loads), redemption fees, or exchange fees, if any, which are described
in the Prospectus. If these costs were applied to your account, your costs would
be higher. Therefore, the 5% hypothetical return is useful in comparing ongoing
costs only, and will not help you determine the relative total costs of owning
different funds. The "Annualized Expense Ratio" represents the actual expenses
for the last six months and may be different from the expense ratio in the
Financial Highlights which is for the six months ended March 31, 2005.
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
10/1/04 3/31/05 Ratio Period*
- --------------------------------------------------------------------------------
WESTWOOD EQUITY FUND
- --------------------------------------------------------------------------------
Actual Fund Return
Class AAA ............ $ 1,000.00 $ 1,105.00 1.50% $ 7.87
Class A .............. $ 1,000.00 $ 1,103.00 1.75% $ 9.18
Class B .............. $ 1,000.00 $ 1,099.90 2.26% $ 11.83
Class C .............. $ 1,000.00 $ 1,099.70 2.25% $ 11.78
Hypothetical 5% Return
Class AAA ............ $ 1,000.00 $ 1,017.45 1.50% $ 7.54
Class A .............. $ 1,000.00 $ 1,016.21 1.75% $ 8.80
Class B .............. $ 1,000.00 $ 1,013.66 2.26% $ 11.35
Class C .............. $ 1,000.00 $ 1,013.71 2.25% $ 11.30
2
THE WESTWOOD FUNDS
DISCLOSURE OF FUND EXPENSES (CONTINUED) (UNAUDITED)
For the Six Month Period from
October 1, 2004 through March 31, 2005 EXPENSE TABLE
- --------------------------------------------------------------------------------
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
10/1/04 3/31/05 Ratio Period*
- -------------------------------------------------------------------------------------------------
WESTWOOD BALANCED FUND
- -------------------------------------------------------------------------------------------------
Actual Fund Return
Class AAA $ 1,000.00 $ 1,064.60 1.23% $ 6.33
Class A $ 1,000.00 $ 1,062.60 1.48% $ 7.61
Class B $ 1,000.00 $ 1,060.60 1.98% $ 10.17
Class C $ 1,000.00 $ 1,059.70 1.98% $ 10.17
Hypothetical 5% Return
Class AAA $ 1,000.00 $ 1,018.80 1.23% $ 6.19
Class A $ 1,000.00 $ 1,017.55 1.48% $ 7.44
Class B $ 1,000.00 $ 1,015.06 1.98% $ 9.95
Class C $ 1,000.00 $ 1,015.06 1.98% $ 9.95
- -------------------------------------------------------------------------------------------------
WESTWOOD INTERMEDIATE BOND FUND
- -------------------------------------------------------------------------------------------------
Actual Fund Return
Class AAA $ 1,000.00 $ 998.10 1.00% $ 4.98
Class A $ 1,000.00 $ 997.60 1.10% $ 5.48
Class B $ 1,000.00 $ 994.40 1.75% $ 8.70
Class C $ 1,000.00 $ 995.50 1.75% $ 8.71
Hypothetical 5% Return
Class AAA $ 1,000.00 $ 1,019.95 1.00% $ 5.04
Class A $ 1,000.00 $ 1,019.45 1.10% $ 5.54
Class B $ 1,000.00 $ 1,016.21 1.75% $ 8.80
Class C $ 1,000.00 $ 1,016.21 1.75% $ 8.80
- -------------------------------------------------------------------------------------------------
WESTWOOD SMALLCAP EQUITY FUND
- -------------------------------------------------------------------------------------------------
Actual Fund Return
Class AAA $ 1,000.00 $ 1,125.60 1.50% $ 7.95
Class A $ 1,000.00 $ 1,123.50 1.75% $ 9.26
Class B $ 1,000.00 $ 1,120.80 2.25% $ 11.90
Class C $ 1,000.00 $ 1,114.60 2.25% $ 11.86
Hypothetical 5% Return
Class AAA $ 1,000.00 $ 1,017.45 1.50% $ 7.54
Class A $ 1,000.00 $ 1,016.21 1.75% $ 8.80
Class B $ 1,000.00 $ 1,013.71 2.25% $ 11.30
Class C $ 1,000.00 $ 1,013.71 2.25% $ 11.30
Beginning Ending Annualized Expenses
Account Value Account Value Expense Paid During
10/1/04 3/31/05 Ratio Period*
- -------------------------------------------------------------------------------------------------
WESTWOOD REALTY FUND
- -------------------------------------------------------------------------------------------------
Actual Fund Return
Class AAA $ 1,000.00 $ 1,075.00 1.50% $ 7.76
Class A $ 1,000.00 $ 1,073.40 1.75% $ 9.05
Class B $ 1,000.00 $ 1,070.60 2.25% $ 11.62
Class C $ 1,000.00 $ 1,070.80 2.25% $ 11.62
Hypothetical 5% Return
Class AAA $ 1,000.00 $ 1,017.45 1.50% $ 7.54
Class A $ 1,000.00 $ 1,016.21 1.75% $ 8.80
Class B $ 1,000.00 $ 1,013.71 2.25% $ 11.30
Class C $ 1,000.00 $ 1,013.71 2.25% $ 11.30
- -------------------------------------------------------------------------------------------------
WESTWOOD MIGHTY MITES FUND
- -------------------------------------------------------------------------------------------------
Actual Fund Return
Class AAA $ 1,000.00 $ 1,124.30 1.50% $ 7.94
Class A $ 1,000.00 $ 1,122.80 1.75% $ 9.26
Class B $ 1,000.00 $ 1,120.10 2.25% $ 11.89
Class C $ 1,000.00 $ 1,119.90 2.25% $ 11.89
Hypothetical 5% Return
Class AAA $ 1,000.00 $ 1,017.45 1.50% $ 7.54
Class A $ 1,000.00 $ 1,016.21 1.75% $ 8.80
Class B $ 1,000.00 $ 1,013.71 2.25% $ 11.30
Class C $ 1,000.00 $ 1,013.71 2.25% $ 11.30
* Expenses are equal to the Fund's annualized expense ratio multiplied by
the average account value over the period, multiplied by the number of
days in the most recent fiscal half-year, then divided by 365._
- --------------------------------------------------------------------------------
We have separated the portfolio manager's commentary from the financial
statements and investment portfolio due to new corporate governance regulations
stipulated by the Sarbanes-Oxley Act of 2002. We have done this to ensure that
the content of the portfolio manager's commentary is unrestricted. The financial
statements and investment portfolio are mailed separately from the commentary.
Both the commentary and the financial statements, including the portfolio of
investments, will be available on our website at www.gabelli.com/funds.
- --------------------------------------------------------------------------------
PROXY VOTING
The Funds file Form N-PX with its complete proxy voting record for the 12 months
ended June 30th, no later than August 31st of each year. A description of the
Funds' proxy voting policies and procedures are available (i) without charge,
upon request, by calling 800-GABELLI (800-422-3554); (ii) by writing to The
Gabelli Funds at One Corporate Center, Rye, NY 10580-1422; and (iii) by visiting
the Securities and Exchange Commission's website at www.sec.gov.
3
SUMMARY OF PORTFOLIO HOLDINGS (UNAUDITED)
The following tables present portfolio holdings as a percent of total net
assets.
- --------------------------------------------------------------------------------
WESTWOOD EQUITY FUND
- --------------------------------------------------------------------------------
Financial Services .................................................... 23.8%
Energy and Utilities: Oil ............................................. 8.8%
Energy and Utilities: Integrated ...................................... 7.6%
Diversified Industrial................................................. 7.6%
Telecommunications .................................................... 5.9%
Aerospace ............................................................. 5.2%
Metals and Mining ..................................................... 5.1%
Transportation ........................................................ 5.0%
Retail ................................................................ 4.0%
Consumer Products ..................................................... 3.7%
Aviation: Parts and Services .......................................... 2.6%
Computer Software and Services ........................................ 2.5%
Energy and Utilities: Natural Gas ..................................... 2.5%
Food and Beverage ..................................................... 2.5%
Specialty Chemicals ................................................... 2.5%
Communications Equipment .............................................. 2.4%
Computer Hardware ..................................................... 2.4%
Cable ................................................................. 2.4%
Hotels and Gaming ..................................................... 1.3%
Paper and Forest Products ............................................. 1.3%
Other Assets and Liabilities (Net) .................................... 0.9%
-----
100.0%
=====
- --------------------------------------------------------------------------------
WESTWOOD BALANCED FUND
- --------------------------------------------------------------------------------
Financial Services .................................................... 16.6%
U.S. Government Agency Obligations .................................... 15.3%
U.S. Government Obligations ........................................... 11.5%
Energy and Utilities: Integrated ...................................... 5.9%
Energy and Utilities: Oil ............................................. 5.6%
Diversified Industrial................................................. 5.1%
Telecommunications .................................................... 4.5%
Retail ................................................................ 4.3%
Consumer Products ..................................................... 3.7%
Transportation ........................................................ 3.2%
Aerospace ............................................................. 3.1%
Metals and Mining ..................................................... 2.9%
Computer Hardware ..................................................... 2.8%
Food and Beverage ..................................................... 2.1%
Aviation: Parts and Services .......................................... 1.5%
Paper and Forest Products ............................................. 1.5%
Cable ................................................................. 1.4%
Communications Equipment .............................................. 1.4%
Energy and Utilities: Natural Gas ..................................... 1.4%
Foreign Government Bonds .............................................. 1.4%
Specialty Chemicals ................................................... 1.4%
Real Estate Investment Trusts ......................................... 1.2%
Hotels and Gaming ..................................................... 0.7%
Asset Backed Securities ............................................... 0.6%
Other Assets and Liabilities (Net) .................................... 0.9%
-----
100.0%
=====
- --------------------------------------------------------------------------------
WESTWOOD INTERMEDIATE BOND FUND
- --------------------------------------------------------------------------------
Corporate Bonds ....................................................... 39.3%
U.S. Government Agency Obligations .................................... 32.7%
U.S. Government Obligations ........................................... 19.1%
Foreign Government Bonds .............................................. 4.8%
Asset Backed Securities ............................................... 2.3%
Other Assets and Liabilities (Net) .................................... 1.8%
-----
100.0%
=====
- --------------------------------------------------------------------------------
WESTWOOD SMALLCAP EQUITY FUND
- --------------------------------------------------------------------------------
Financial Services .................................................... 15.9%
Energy and Utilities .................................................. 15.3%
Real Estate ........................................................... 10.1%
Aerospace ............................................................. 6.2%
Diversified Industrial................................................. 6.1%
Health Care ........................................................... 5.9%
Equipment and Supplies ................................................ 4.1%
Computer Software and Services ........................................ 4.0%
Hotels and Gaming ..................................................... 4.0%
Food and Beverage ..................................................... 4.0%
Consumer Products ..................................................... 4.0%
Metals and Mining ..................................................... 4.0%
Transportation ........................................................ 3.9%
Paper and Forest Products ............................................. 3.0%
Retail ................................................................ 2.1%
Electronics ........................................................... 2.0%
Specialty Chemicals ................................................... 1.2%
Building and Construction ............................................. 1.1%
Business Services ..................................................... 1.0%
Telecommunications .................................................... 1.0%
Other Assets and Liabilities (Net) .................................... 1.1%
-----
100.0%
=====
4
- --------------------------------------------------------------------------------
WESTWOOD REALTY FUND
- --------------------------------------------------------------------------------
Shopping Centers ...................................................... 19.2%
Office Property ....................................................... 16.9%
Apartments ............................................................ 15.4%
Diversified Property .................................................. 13.0%
Hotels ................................................................ 5.4%
Transportation ........................................................ 4.8%
Health Care ........................................................... 4.0%
Telecommunications .................................................... 4.0%
Industrial Property ................................................... 3.9%
Public Storage ........................................................ 3.5%
U.S. Government Obligations ........................................... 2.3%
Paper and Forest Products ............................................. 2.1%
Entertainment ......................................................... 2.0%
Manufactured Housing .................................................. 1.6%
Other Assets and Liabilities (Net) .................................... 1.9%
-----
100.0%
=====
- --------------------------------------------------------------------------------
WESTWOOD MIGHTY MITES(SM)FUND
- --------------------------------------------------------------------------------
Financial Services .................................................... 15.7%
Health Care ........................................................... 12.0%
Manufactured Housing and Recreational Vehicles ........................ 8.7%
Equipment and Supplies ................................................ 6.9%
Automotive: Parts and Accessories ..................................... 6.7%
Broadcasting .......................................................... 5.8%
Consumer Products ..................................................... 5.4%
Diversified Industrial ................................................ 4.7%
Real Estate ........................................................... 3.4%
Business Services ..................................................... 3.2%
Energy and Utilities: Natural Gas ..................................... 2.9%
Computer Software and Services ........................................ 2.7%
Telecommunications .................................................... 2.3%
Energy and Utilities: Integrated ...................................... 1.9%
Food and Beverage ..................................................... 1.9%
Publishing ............................................................ 1.9%
Entertainment ......................................................... 1.9%
Aviation: Parts and Services .......................................... 1.8%
Energy and Utilities: Services ........................................ 1.3%
Energy and Utilities: Water ........................................... 1.3%
Specialty Chemicals ................................................... 1.3%
Electronics ........................................................... 1.1%
Educational Services .................................................. 1.0%
Retail ................................................................ 0.6%
Energy and Utilities: Electric ........................................ 0.6%
Paper and Forest Products ............................................. 0.5%
Closed-End Funds ...................................................... 0.5%
Restaurants ........................................................... 0.4%
Building and Construction ............................................. 0.4%
Hotels and Gaming ..................................................... 0.3%
Communications Equipment .............................................. 0.3%
Agriculture ........................................................... 0.2%
Transportation ........................................................ 0.2%
Cable ................................................................. 0.1%
Wireless Communications ............................................... 0.1%
Consumer Services ..................................................... 0.1%
Metals and Mining ..................................................... 0.0%
Other Assets and Liabilities (Net) .................................... (0.1)%
-----
100.0%
=====
THE FUNDS FILE A COMPLETE SCHEDULE OF PORTFOLIO HOLDINGS WITH THE SEC FOR THE
FIRST AND THIRD QUARTERS OF EACH FISCAL YEAR ON FORM N-Q, THE FIRST OF WHICH WAS
FILED FOR THE QUARTER ENDED DECEMBER 31, 2004. SHAREHOLDERS MAY OBTAIN THIS
INFORMATION AT WWW.GABELLI.COM OR BY CALLING THE FUND AT 800-GABELLI
(800-422-3554). THE FUNDS' FORM N-Q IS AVAILABLE ON THE SEC'S WEBSITE AT
WWW.SEC.GOV AND MAY ALSO BE REVIEWED AND COPIED AT THE COMMISSION'S PUBLIC
REFERENCE ROOM IN WASHINGTON, DC. INFORMATION ON THE OPERATION OF THE PUBLIC
REFERENCE ROOM MAY BE OBTAINED BY CALLING 1-800-SEC-0330.
5
THE WESTWOOD EQUITY FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
COMMON STOCKS -- 99.1%
AEROSPACE -- 5.2%
77,100 Boeing Co. ......................... $ 2,741,219 $ 4,507,266
74,300 Lockheed Martin Corp. .............. 3,805,245 4,536,758
------------ ------------
6,546,464 9,044,024
------------ ------------
AVIATION: PARTS AND SERVICES -- 2.6%
44,500 United Technologies Corp. .......... 2,734,221 4,523,870
------------ ------------
CABLE -- 2.4%
127,400 Comcast Corp., Cl. A, Special+ ..... 3,655,516 4,255,160
------------ ------------
COMMUNICATIONS EQUIPMENT -- 2.4%
277,200 Motorola Inc. ...................... 4,647,226 4,149,684
------------ ------------
COMPUTER HARDWARE -- 2.4%
47,000 International Business
Machines Corp. .................. 3,890,129 4,294,860
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 2.5%
180,400 Microsoft Corp. .................... 4,863,723 4,360,268
------------ ------------
CONSUMER PRODUCTS -- 3.7%
33,800 Altria Group Inc. .................. 1,419,700 2,210,182
83,300 Colgate-Palmolive Co. .............. 4,258,678 4,345,761
------------ ------------
5,678,378 6,555,943
------------ ------------
DIVERSIFIED INDUSTRIAL -- 7.6%
66,100 Eaton Corp. ........................ 3,630,519 4,322,940
125,300 General Electric Co. ............... 3,573,180 4,518,318
49,600 ITT Industries Inc. ................ 4,092,879 4,475,904
------------ ------------
11,296,578 13,317,162
------------ ------------
ENERGY AND UTILITIES: INTEGRATED -- 7.6%
88,000 Burlington Resources Inc. .......... 2,371,043 4,406,160
40,900 ConocoPhillips ..................... 2,511,790 4,410,656
62,400 Entergy Corp. ...................... 3,876,423 4,409,184
------------ ------------
8,759,256 13,226,000
------------ ------------
ENERGY AND UTILITIES: NATURAL GAS -- 2.5%
71,306 Apache Corp. ....................... 2,244,078 4,366,066
------------ ------------
ENERGY AND UTILITIES: OIL -- 8.8%
74,600 ChevronTexaco Corp. ................ 3,341,944 4,349,926
73,800 Exxon Mobil Corp. .................. 2,990,984 4,398,480
47,700 Marathon Oil Corp. ................. 1,781,617 2,238,084
44,370 Murphy Oil Corp. ................... 2,890,004 4,380,650
------------ ------------
11,004,549 15,367,140
------------ ------------
FINANCIAL SERVICES -- 23.8%
85,100 American Express Co. ............... 3,216,300 4,371,587
99,300 Bank of America Corp. .............. 2,606,684 4,379,130
45,400 Bear Stearns Companies Inc. ........ 2,989,394 4,535,460
98,133 Citigroup Inc. ..................... 4,044,665 4,410,097
79,300 Comerica Inc. ...................... 4,754,389 4,367,844
93,500 Eaton Vance Corp. .................. 1,710,521 2,191,640
63,800 Franklin Resources Inc. ............ 4,155,730 4,379,870
124,484 JPMorgan Chase & Co. ............... 4,241,430 4,307,147
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
46,400 Lehman Brothers Holdings Inc. ...... $ 3,413,277 $ 4,369,024
75,100 Prudential Financial Inc. .......... 2,432,342 4,310,740
------------ ------------
33,564,732 41,622,539
------------ ------------
FOOD AND BEVERAGE -- 2.5%
63,700 Dean Foods Co.+ .................... 1,995,908 2,184,910
44,500 General Mills Inc. ................. 2,057,602 2,187,175
------------ ------------
4,053,510 4,372,085
------------ ------------
HOTELS AND GAMING -- 1.3%
37,200 Starwood Hotels & Resorts
Worldwide Inc. .................. 1,687,802 2,233,116
------------ ------------
METALS AND MINING -- 5.1%
143,400 Alcoa Inc. ......................... 4,246,740 4,357,926
44,300 Phelps Dodge Corp. ................. 3,903,198 4,506,639
------------ ------------
8,149,938 8,864,565
------------ ------------
PAPER AND FOREST PRODUCTS -- 1.3%
47,228 Rayonier Inc. ...................... 1,870,674 2,339,203
------------ ------------
RETAIL -- 4.0%
68,900 Federated Department Stores Inc. ... 3,310,917 4,384,796
19,291 Sears Holdings Corp.+ .............. 2,501,526 2,569,047
------------ ------------
5,812,443 6,953,843
------------ ------------
SPECIALTY CHEMICALS -- 2.5%
86,100 E.I. du Pont de Nemours and Co. .... 3,948,772 4,411,764
------------ ------------
TELECOMMUNICATIONS -- 5.9%
80,100 ALLTEL Corp. ....................... 4,355,072 4,393,485
45,600 Harris Corp. ....................... 1,338,698 1,488,840
124,404 Verizon Communications Inc. ........ 4,757,437 4,416,342
------------ ------------
10,451,207 10,298,667
------------ ------------
TRANSPORTATION -- 5.0%
79,100 Burlington Northern Santa Fe Corp. . 3,427,986 4,265,863
8,100 Nordic American Tanker
Shipping Ltd. ................... 395,980 384,345
37,000 Overseas Shipholding Group Inc. .... 2,128,017 2,327,670
94,900 Top Tankers Inc. ................... 1,478,637 1,760,395
------------ ------------
7,430,620 8,738,273
------------ ------------
TOTAL COMMON STOCKS ................ 142,289,816 173,294,232
------------ ------------
TOTAL INVESTMENTS -- 99.1% ......... $142,289,816 173,294,232
============
OTHER ASSETS AND LIABILITIES (NET) -- 0.9% ........ 1,595,531
------------
NET ASSETS -- 100.0% .............................. $174,889,763
============
- ------------------
For Federal tax purposes:
Aggregate cost .................................... $142,289,816
============
Gross unrealized appreciation ..................... $ 32,744,686
Gross unrealized depreciation ..................... (1,740,270)
------------
Net unrealized appreciation (depreciation) ........ $ 31,004,416
============
- ------------------
+ Non-income producing security.
See accompanying notes to financial statements.
6
THE WESTWOOD EQUITY FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
COMMON STOCKS -- 60.0%
AEROSPACE -- 3.1%
42,100 Boeing Co. ......................... $ 1,490,018 $ 2,461,166
35,500 Lockheed Martin Corp. .............. 1,822,227 2,167,630
------------ ------------
3,312,245 4,628,796
------------ ------------
AVIATION: PARTS AND SERVICES -- 1.5%
22,000 United Technologies Corp. .......... 1,242,768 2,236,520
------------ ------------
CABLE -- 1.4%
62,400 Comcast Corp., Cl. A Special+ ...... 1,778,117 2,084,160
------------ ------------
COMMUNICATIONS EQUIPMENT -- 1.4%
137,500 Motorola Inc. ...................... 2,187,372 2,058,375
------------ ------------
COMPUTER HARDWARE -- 1.4%
21,800 International Business
Machines Corp. .................. 1,614,298 1,992,084
------------ ------------
CONSUMER PRODUCTS -- 3.7%
17,000 Altria Group Inc. .................. 695,986 1,111,630
41,200 Colgate-Palmolive Co. .............. 2,113,916 2,149,404
88,400 Microsoft Corp. .................... 2,369,314 2,136,628
------------ ------------
5,179,216 5,397,662
------------ ------------
DIVERSIFIED INDUSTRIAL -- 4.3%
32,800 Eaton Corp. ........................ 1,925,242 2,145,120
59,400 General Electric Co. ............... 1,615,176 2,141,964
23,100 ITT Industries Inc. ................ 1,902,185 2,084,544
------------ ------------
5,442,603 6,371,628
------------ ------------
ENERGY AND UTILITIES: INTEGRATED -- 5.9%
44,100 Burlington Resources Inc. .......... 1,226,587 2,208,087
19,800 ConocoPhillips ..................... 1,248,253 2,135,232
32,900 Entergy Corp. ...................... 2,034,360 2,324,714
45,000 Kinder Morgan Energy Partners LP ... 1,811,147 2,025,000
------------ ------------
6,320,347 8,693,033
------------ ------------
ENERGY AND UTILITIES: NATURAL GAS -- 1.4%
34,680 Apache Corp. ....................... 1,160,528 2,123,457
------------ ------------
ENERGY AND UTILITIES: OIL -- 4.9%
34,300 ChevronTexaco Corp. ................ 1,464,401 2,000,033
34,900 Exxon Mobil Corp. .................. 1,261,115 2,080,040
23,200 Marathon Oil Corp. ................. 866,689 1,088,544
21,543 Murphy Oil Corp. ................... 1,365,571 2,126,940
------------ ------------
4,957,776 7,295,557
------------ ------------
FINANCIAL SERVICES -- 13.9%
41,000 American Express Co. ............... 1,545,897 2,106,170
48,700 Bank of America Corp. .............. 1,461,792 2,147,670
22,600 Bear Stearns Companies Inc. ........ 1,546,332 2,257,740
47,933 Citigroup Inc. ..................... 1,773,086 2,154,109
38,800 Comerica Inc. ...................... 2,297,701 2,137,104
43,600 Eaton Vance Corp. .................. 780,998 1,021,984
32,000 Franklin Resources Inc. ............ 2,091,859 2,196,800
60,896 JPMorgan Chase & Co. ............... 2,139,181 2,107,002
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
24,800 Lehman Brothers Holdings Inc. ...... $ 1,803,114 $ 2,335,168
36,400 Prudential Financial Inc. .......... 1,169,588 2,089,360
------------ ------------
16,609,548 20,553,107
------------ ------------
FOOD AND BEVERAGE -- 1.5%
32,100 Dean Foods Co.+ .................... 998,725 1,101,030
21,600 General Mills Inc. ................. 993,496 1,061,640
------------ ------------
1,992,221 2,162,670
------------ ------------
HOTELS AND GAMING -- 0.7%
18,000 Starwood Hotels & Resorts
Worldwide Inc. .................. 816,139 1,080,540
------------ ------------
METALS AND MINING -- 2.9%
69,900 Alcoa Inc. ......................... 1,920,211 2,124,261
21,900 Phelps Dodge Corp. ................. 1,935,455 2,227,887
------------ ------------
3,855,666 4,352,148
------------ ------------
PAPER AND FOREST PRODUCTS -- 1.5%
23,678 Rayonier Inc. ...................... 959,831 1,172,771
14,500 Temple-Inland Inc. ................. 826,239 1,051,975
------------ ------------
1,786,070 2,224,746
------------ ------------
RETAIL -- 2.5%
37,100 Federated Department Stores Inc. ... 1,820,771 2,361,044
9,441 Sears Holdings Corp.+ .............. 1,224,265 1,257,288
------------ ------------
3,045,036 3,618,332
------------ ------------
SPECIALTY CHEMICALS -- 1.4%
41,200 E.I. du Pont de Nemours and Co. .... 1,881,432 2,111,088
------------ ------------
TELECOMMUNICATIONS -- 3.4%
39,500 ALLTEL Corp. ....................... 2,155,233 2,166,575
22,400 Harris Corp. ....................... 516,296 731,360
60,738 Verizon Communications Inc. ........ 2,261,711 2,156,199
------------ ------------
4,933,240 5,054,134
------------ ------------
TRANSPORTATION -- 3.2%
41,700 Burlington Northern Santa Fe Corp. . 1,766,702 2,248,881
6,800 Nordic American Tanker
Shipping Ltd. ................... 331,990 322,660
20,900 Overseas Shipholding Group Inc. .... 1,201,071 1,314,819
45,700 Top Tankers Inc. ................... 734,440 847,735
------------ ------------
4,034,203 4,734,095
------------ ------------
TOTAL COMMON STOCKS ................ 72,148,825 88,772,132
------------ ------------
PRINCIPAL
AMOUNT
- ----------
ASSET BACKED SECURITIES -- 0.6%
$ 825,000 GS Mortgage Securities Corp. II,
97-GL Cl. A2D,
6.940%, 07/13/30 832,570 867,537
------------ ------------
See accompanying notes to financial statements.
7
THE WESTWOOD BALANCED FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ---------- ------------ ------------
CORPORATE BONDS -- 10.3%
COMPUTER HARDWARE -- 1.4%
$ 750,000 Hewlett-Packard Co.,
3.625%, 03/15/08 ................ $ 748,587 $ 735,854
1,250,000 IBM Corp.,
4.875%, 10/01/06 ................ 1,276,811 1,267,169
------------ ------------
2,025,398 2,003,023
------------ ------------
DIVERSIFIED INDUSTRIAL -- 0.8%
1,200,000 General Electric Co.,
5.000%, 02/01/13 ................ 1,214,424 1,200,177
------------ ------------
ENERGY AND UTILITIES: OIL -- 0.7%
1,005,000 Occidental Petroleum,
4.250%, 03/15/10 ................ 1,007,754 984,067
------------ ------------
FINANCIAL SERVICES -- 2.7%
1,250,000 Bank of America Corp.,
5.375%, 06/15/14 ................ 1,306,464 1,272,259
1,125,000 Citigroup Inc.,
6.500%, 01/18/11 ................ 1,247,340 1,223,643
1,450,000 Goldman Sachs Group Inc.,
6.650%, 05/15/09 ................ 1,460,370 1,557,445
------------ ------------
4,014,174 4,053,347
------------ ------------
FOOD AND BEVERAGE -- 0.6%
950,000 Anheuser-Busch Cos. Inc.,
4.375%, 01/15/13 ................ 934,679 925,185
------------ ------------
REAL ESTATE INVESTMENT TRUSTS -- 1.2%
1,600,000 Archstone-Smith Trust,
7.200%, 03/01/13 ................ 1,554,009 1,764,720
------------ ------------
RETAIL -- 1.8%
1,275,000 Neiman Marcus Group Inc.,
6.650%, 06/01/08 ................ 1,274,435 1,348,172
1,250,000 Wal-Mart Stores,
6.875%, 08/10/09 ................ 1,311,894 1,363,040
------------ ------------
2,586,329 2,711,212
------------ ------------
TELECOMMUNICATIONS -- 1.1%
1,460,000 Verizon Communications, Deb.,
6.460%, 04/15/08 ................ 1,466,973 1,545,644
------------ ------------
TOTAL CORPORATE BONDS .............. 14,803,740 15,187,375
------------ ------------
FOREIGN GOVERNMENT BONDS -- 1.4%
1,000,000 Canadian Government Global Bond,
6.750%, 08/28/06 ................ 1,015,685 1,040,229
1,000,000 Republic of Italy Global Bond,
2.500%, 03/31/06 ................ 999,683 990,158
------------ ------------
TOTAL FOREIGN
GOVERNMENT BONDS ................ 2,015,368 2,030,387
------------ ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 15.3%
FEDERAL HOME LOAN BANK -- 2.3%
2,000,000 3.250%, 08/15/05 ................ 2,012,759 2,001,712
1,500,000 2.875%, 08/15/06 ................ 1,482,594 1,481,680
------------ ------------
3,495,353 3,483,392
------------ ------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ---------- ------------ ------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 7.8%
$1,000,000 5.500%, 07/15/06 ................ $ 1,028,724 $ 1,021,394
2,000,000 3.500%, 09/15/07 ................ 2,016,435 1,976,954
600,000 4.750%, 12/08/10 ................ 599,059 598,186
1,250,000 5.000%, 07/15/14 ................ 1,299,599 1,265,442
2,000,000 Zero Coupon, 05/24/05 ........... 1,992,816 1,992,816
1,200,000 Zero Coupon, 06/28/05 ........... 1,192,168 1,191,713
1,500,000 Zero Coupon, 08/23/05 ........... 1,483,380 1,481,730
2,000,000 Zero Coupon, 10/11/05 ........... 1,967,941 1,965,420
------------ ------------
11,580,122 11,493,655
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 5.2%
2,000,000 2.000%, 01/15/06 ................ 1,991,941 1,975,642
1,000,000 2.625%, 11/15/06 ................ 997,945 980,462
1,250,000 7.125%, 03/15/07 ................ 1,298,906 1,322,908
2,500,000 4.375%, 03/15/13 ................ 2,476,123 2,439,600
1,000,000 Zero Coupon, 09/16/05 ........... 986,469 985,370
------------ ------------
7,751,384 7,703,982
------------ ------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS .............. 22,826,859 22,681,029
------------ ------------
U.S. GOVERNMENT OBLIGATIONS -- 11.5%
U.S. INFLATION INDEX NOTES -- 1.0%
1,500,000 0.875%, 04/15/10 ................ 1,508,972 1,477,374
------------ ------------
U.S. TREASURY BILLS -- 1.5%
2,250,000 U.S. Treasury Bills,
2.480% to 2.790%++,
05/05/05 to 06/16/05 ............ 2,241,368 2,241,457
------------ ------------
U.S. TREASURY BONDS -- 0.8%
1,000,000 7.250%, 05/15/16 ................ 1,228,559 1,226,602
------------ ------------
U.S. TREASURY NOTES -- 8.2%
2,750,000 1.625%, 10/31/05 ................ 2,741,026 2,726,477
1,600,000 5.750%, 11/15/05 ................ 1,614,664 1,624,813
2,250,000 2.250%, 04/30/06 ................ 2,224,802 2,220,734
2,725,000 3.500%, 11/15/06 ................ 2,727,502 2,717,337
750,000 3.375%, 02/28/07 ................ 743,739 744,756
2,000,000 4.750%, 05/15/14 ................ 2,015,633 2,038,126
------------ ------------
12,067,366 12,072,243
------------ ------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS ........................ 17,046,265 17,017,676
------------ ------------
TOTAL INVESTMENTS -- 99.1% ......... $129,673,627 146,556,136
============
OTHER ASSETS AND LIABILITIES (NET) -- 0.9% 1,313,220
------------
NET ASSETS -- 100.0% $147,869,356
- ------------------ ============
For Federal tax purposes:
Aggregate cost .................................... $129,673,627
============
Gross unrealized appreciation ..................... $ 17,921,205
Gross unrealized depreciation ..................... (1,038,696)
------------
Net unrealized appreciation (depreciation) ........ $ 16,882,509
============
- ------------------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
See accompanying notes to financial statements.
8
THE WESTWOOD INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ---------- ------------ ------------
ASSET BACKED SECURITIES -- 2.3%
$ 225,000 GS Mortgage Securities Corp. II,
97-GL Cl. A2D,
6.940%, 07/13/30 ................ $ 231,427 $ 236,601
------------ ------------
CORPORATE BONDS -- 39.3%
COMPUTER HARDWARE -- 5.5%
325,000 Hewlett-Packard Co.,
3.625%, 03/15/08 ................ 325,834 318,870
250,000 IBM Corp.,
4.875%, 10/01/06 ................ 254,851 253,434
------------ ------------
580,685 572,304
------------ ------------
DIVERSIFIED INDUSTRIAL -- 2.4%
250,000 General Electric Co.,
5.000%, 02/01/13 ................ 253,005 250,037
------------ ------------
ENERGY AND UTILITIES: OIL -- 5.4%
125,000 BP Capital Markets plc,
4.000%, 04/29/05 ................ 125,113 125,113
225,000 ChevronTexaco Corp.,
3.375%, 02/15/08 ................ 226,029 219,915
225,000 Occidental Petroleum,
4.250%, 03/15/10 ................ 225,000 220,314
------------ ------------
576,142 565,342
------------ ------------
FINANCIAL SERVICES -- 15.8%
300,000 Bank of America Corp.,
5.375%, 06/15/14 ................ 313,551 305,342
225,000 Citigroup Inc.,
6.500%, 01/18/11 ................ 249,079 244,729
300,000 Goldman Sachs Group Inc.,
6.650%, 05/15/09 ................ 310,122 322,230
260,000 International Bank for Reconstruction
& Development,
8.625%, 10/15/16 ................ 324,553 343,439
175,000 Merrill Lynch & Co.,
5.000%, 02/03/14 ................ 174,605 171,746
275,000 Toyota Motor Credit Corp.,
2.875%, 08/01/08 ................ 272,637 263,190
------------ ------------
1,644,547 1,650,676
------------ ------------
FOOD AND BEVERAGE -- 2.3%
250,000 Anheuser-Busch Cos. Inc.,
4.375%, 01/15/13 ................ 245,978 243,470
------------ ------------
REAL ESTATE -- 1.6%
150,000 Archstone-Smith Trust,
7.200%, 03/01/13 ................ 146,034 165,442
------------ ------------
RETAIL -- 5.1%
300,000 Neiman Marcus Group Inc.,
6.650%, 06/01/08 ................ 313,281 317,217
200,000 Wal-Mart Stores,
6.875%, 08/10/09 ................ 209,903 218,086
------------ ------------
523,184 535,303
------------ ------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ---------- ------------ ------------
TELECOMMUNICATIONS -- 1.2%
$125,000 Verizon Communications, Deb.,
6.460%, 04/15/08 ................ $ 126,270 $ 132,333
------------ ------------
TOTAL CORPORATE BONDS .............. 4,095,845 4,114,907
------------ ------------
FOREIGN GOVERNMENT BONDS -- 4.8%
175,000 Canadian Government Global Bond,
6.750%, 08/28/06 ................ 175,606 182,040
325,000 Republic of Italy Global Bond,
2.500%, 03/31/06 ................ 325,257 321,802
------------ ------------
TOTAL FOREIGN
GOVERNMENT BONDS ................ 500,863 503,842
------------ ------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 32.7%
FEDERAL HOME LOAN BANK -- 3.8%
150,000 3.250%, 08/15/05 ................ 150,888 150,128
250,000 2.875%, 08/15/06 ................ 247,099 246,947
------------ ------------
397,987 397,075
------------ ------------
FEDERAL HOME LOAN MORTGAGE CORP. -- 10.9%
250,000 4.500%, 01/15/14 ................ 248,796 244,822
200,000 5.000%, 07/15/14 ................ 208,479 202,471
300,000 Zero Coupon, 06/28/05 ........... 298,042 297,928
250,000 Zero Coupon, 08/23/05 ........... 247,230 246,955
150,000 Zero Coupon, 10/11/05 ........... 147,596 147,407
------------ ------------
1,150,143 1,139,583
------------ ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 11.9%
300,000 2.000%, 01/15/06 ................ 298,764 296,346
175,000 2.625%, 11/15/06 ................ 174,640 171,581
300,000 4.375%, 03/15/13 ................ 297,932 292,752
195,160 5.500%, 01/01/35 ................ 198,769 195,638
300,000 Zero Coupon, 09/16/05 ........... 295,954 295,611
------------ ------------
1,266,059 1,251,928
------------ ------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 6.1%
19,585 GNMA, Pool #580871,
6.500%, 12/15/31 ................ 19,652 20,486
165,152 GNMA, Pool #562288,
6.000%, 12/15/33 ................ 168,840 169,880
243,279 GNMA, Pool #604946,
5.500%, 01/15/34 ................ 247,372 245,787
197,478 GNMA, Pool #604970,
5.500%, 01/15/34 ................ 200,181 199,514
------------ ------------
636,045 635,667
------------ ------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS 3,450,234 3,424,253
------------ ------------
U.S. GOVERNMENT OBLIGATIONS -- 19.1%
U.S. INFLATION INDEX NOTES -- 2.6%
275,000 0.875%, 04/15/10 276,645 270,852
------------ ------------
See accompanying notes to financial statements.
9
THE WESTWOOD INTERMEDIATE BOND FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT COST VALUE
- ---------- ------------ ------------
U.S. GOVERNMENT OBLIGATIONS (CONTINUED)
U.S. TREASURY BILLS -- 2.9%
$ 300,000 U.S. Treasury Bills,
2.230%++, 04/07/05 .............. $ 299,889 $ 299,889
------------ ------------
U.S. TREASURY BONDS -- 8.4%
250,000 7.125%, 02/15/23 ................ 311,673 316,758
300,000 6.125%, 11/15/27 ................ 309,070 350,731
200,000 5.500%, 08/15/28 ................ 219,346 217,328
------------ ------------
840,089 884,817
------------ ------------
U.S. TREASURY NOTES -- 5.2%
275,000 1.625%, 10/31/05 ................ 273,143 272,647
275,000 2.250%, 04/30/06 ................ 271,921 271,423
------------ ------------
545,064 544,070
------------ ------------
TOTAL U.S. GOVERNMENT
OBLIGATIONS ..................... 1,961,687 1,999,628
------------ ------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
WARRANTS -- 0.0%
ENERGY AND UTILITIES -- 0.0%
8 Forman Petroleum Corp., Series A,
expires 01/14/07+ (a) (b) ....... $ 0 $ 0
25 Forman Petroleum Corp., Series B,
expires 01/14/07+ (a) (b) ....... 0 1
25 Forman Petroleum Corp., Series C,
expires 01/14/07+ (a) (b) ....... 0 0
25 Forman Petroleum Corp., Series D,
expires 01/14/07+ (a) (b) ....... 0 0
------------ ------------
0 1
------------ ------------
TOTAL WARRANTS .............. 0 1
------------ ------------
TOTAL INVESTMENTS -- 98.2% .. $ 10,240,056 10,279,232
============
OTHER ASSETS AND LIABILITIES (NET) -- 1.8% ........ 186,174
------------
NET ASSETS -- 100.0% .............................. $ 10,465,406
============
- ------------------
For Federal tax purposes:
Aggregate cost .................................... $ 10,240,056
============
Gross unrealized appreciation ..................... $ 128,813
Gross unrealized depreciation ..................... (89,637)
------------
Net unrealized appreciation (depreciation) ........ $ 39,176
============
- ------------------
(a) Security fair valued under procedures established by the Board of
Trustees. The aggregate value of fair valued securities is $1 or 0.00% of
net assets. See Note 2 to the financial statements.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At March
31, 2005, the market value of Rule 144A securities amounted to $1 or 0.0%
of total net assets.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
See accompanying notes to financial statements.
10
THE WESTWOOD SMALLCAP EQUITY FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
COMMON STOCKS -- 98.9%
AEROSPACE -- 6.2%
4,200 DRS Technologies Inc.+ ............. $ 149,169 $ 178,500
3,800 Moog Inc., Cl. A+ .................. 136,393 171,760
9,300 Titan Corp.+ ....................... 147,161 168,888
------------ ------------
432,723 519,148
------------ ------------
BUILDING AND CONSTRUCTION -- 1.1%
2,100 Washington Group International Inc.+ 70,690 94,479
------------ ------------
BUSINESS SERVICES -- 1.0%
3,000 URS Corp.+ ......................... 83,386 86,250
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 4.0%
3,800 Hyperion Solutions Corp.+ .......... 138,429 167,618
6,200 SI International Inc.+ ............. 165,619 171,306
------------ ------------
304,048 338,924
------------ ------------
CONSUMER PRODUCTS -- 4.0%
4,700 Deckers Outdoor Corp.+ ............. 175,231 167,978
4,900 Knoll Inc. ......................... 73,500 81,732
4,900 Prestige Brands Holdings Inc.+ ..... 86,113 86,485
------------ ------------
334,844 336,195
------------ ------------
DIVERSIFIED INDUSTRIAL -- 6.1%
4,900 Ameron International Corp. ......... 164,173 176,400
4,600 Briggs & Stratton Corp. ............ 172,557 167,486
3,500 Kennametal Inc. .................... 150,651 166,215
------------ ------------
487,381 510,101
------------ ------------
ELECTRONICS -- 2.0%
5,400 Benchmark Electronics Inc.+.. ...... 199,297 171,882
------------ ------------
ENERGY AND UTILITIES -- 15.3%
6,100 Atmos Energy Corp. ................. 167,135 164,700
7,500 Foundation Coal Holdings Inc. ...... 184,288 176,325
3,000 Houston Exploration Co.+ ........... 159,825 170,850
1,700 Quicksilver Resources Inc.+.. ...... 50,208 82,841
5,500 Remington Oil & Gas Corp.+ ......... 175,669 173,360
7,100 Southern Union Co.+ ................ 153,370 178,281
4,000 Unit Corp.+ ........................ 161,900 180,680
7,700 Westar Energy Inc. ................. 154,609 166,628
------------ ------------
1,207,004 1,293,665
------------ ------------
EQUIPMENT AND SUPPLIES -- 4.1%
5,200 Greenbrier Companies Inc. .......... 126,181 182,468
3,300 Middleby Corp. ..................... 175,352 163,020
------------ ------------
301,533 345,488
------------ ------------
FINANCIAL SERVICES -- 15.9%
6,700 Baldwin & Lyons Inc., Cl. B.. ...... 172,462 173,798
9,700 BankAtlantic Bancorp Inc., Cl. A ... 172,023 168,780
4,400 BKF Capital Group Inc. ............. 123,462 176,044
5,300 Cathay General Bancorp ............. 178,191 166,950
3,400 Corus Bankshares Inc. .............. 139,026 162,146
4,200 Piper Jaffray Companies Inc.+ ...... 180,697 153,678
5,100 Provident Bankshares Corp. ......... 163,167 168,096
3,300 Triad Guaranty Inc.+ ............... 176,878 173,613
------------ ------------
1,305,906 1,343,105
------------ ------------
FOOD AND BEVERAGE -- 4.0%
6,500 Corn Products International Inc. ... 147,591 168,935
3,600 J & J Snack Foods Corp. ............ 138,681 168,588
------------ ------------
286,272 337,523
------------ ------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
HEALTH CARE -- 5.9%
6,300 PRA International+ ................. $ 145,828 $ 169,659
4,700 Sybron Dental Specialties Inc.+ .... 128,673 168,730
8,500 Symmetry Medical Inc.+ ............. 151,020 161,670
------------ ------------
425,521 500,059
------------ ------------
HOTELS AND GAMING -- 4.0%
8,100 Marcus Corp. ....................... 154,231 166,050
6,600 Orient-Express Hotels Ltd., Cl. A .. 170,331 172,260
------------ ------------
324,562 338,310
------------ ------------
METALS AND MINING -- 4.0%
2,300 Cleveland-Cliffs Inc. .............. 178,981 167,601
6,600 Compass Minerals International Inc. 145,518 167,970
------------ ------------
324,499 335,571
------------ ------------
PAPER AND FOREST PRODUCTS -- 3.0%
8,900 Longview Fibre Co. ................. 113,579 166,964
5,800 Wausau-Mosinee Paper Corp. ......... 89,089 82,012
------------ ------------
202,668 248,976
------------ ------------
REAL ESTATE -- 10.1%
2,300 EastGroup Properties Inc. .......... 75,533 86,710
6,300 Extra Space Storage Inc. ........... 88,206 85,050
3,300 Getty Realty Corp. ................. 79,326 84,315
2,800 Heritage Property Investment Trust 77,119 83,104
5,900 LaSalle Hotel Properties ........... 160,401 171,395
7,900 Lexington Corporate Properties Trust 173,560 173,326
2,600 Post Properties Inc. ............... 82,902 80,704
3,100 Ramco-Gershenson Properties Trust .. 77,592 84,165
------------ ------------
814,639 848,769
------------ ------------
RETAIL -- 2.1%
6,300 Pacific Sunwear of California Inc.+ 147,388 176,274
------------ ------------
SPECIALTY CHEMICALS -- 1.2%
1,800 Cytec Industries Inc. .............. 83,027 97,650
------------ ------------
TELECOMMUNICATIONS -- 1.0%
5,800 Valor Communications Group Inc. 85,295 83,926
------------ ------------
TRANSPORTATION -- 3.9%
7,400 Arlington Tankers Ltd. ............. 168,771 173,900
8,400 SCS Transportation Inc.+ ........... 173,446 156,156
------------ ------------
342,217 330,056
------------ ------------
TOTAL COMMON STOCKS ................ 7,762,900 8,336,351
------------ ------------
TOTAL INVESTMENTS -- 98.9% $ 7,762,900 8,336,351
============
OTHER ASSETS AND LIABILITIES (NET) -- 1.1% ........ 91,162
------------
NET ASSETS -- 100.0% ............................. $ 8,427,513
============
- --------------------
For Federal tax purposes:
Aggregate cost .................................... $ 7,762,900
============
Gross unrealized appreciation ..................... $ 725,701
Gross unrealized depreciation ..................... (152,250)
------------
Net unrealized appreciation (depreciation) ........ $ 573,451
============
- --------------------
+ Non-income producing security.
See accompanying notes to financial statements.
11
THE WESTWOOD REALTY FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
COMMON STOCKS -- 95.8%
APARTMENTS -- 15.4%
4,800 Apartment Investment &
Management Co., Cl. A ........... $ 172,336 $ 178,560
10,282 Archstone-Smith Trust .............. 249,074 350,719
3,000 Avalonbay Communities Inc. ......... 137,908 200,670
4,600 BRE Properties Inc., Cl. A ......... 147,463 162,380
8,793 Camden Property Trust .............. 309,013 413,535
14,000 Equity Residential ................. 381,264 450,940
4,400 Gables Residential Trust ........... 144,892 146,520
4,500 Home Properties Inc. ............... 151,365 174,600
4,900 Mid-America Apartment
Communities Inc. ................ 131,296 178,850
8,400 Post Properties Inc. ............... 216,333 260,736
8,200 United Dominion Realty Trust Inc. .. 142,437 171,134
------------ ------------
2,183,381 2,688,644
------------ ------------
DIVERSIFIED PROPERTY -- 13.0%
6,268 Catellus Development Corp. ......... 160,872 167,042
5,000 Colonial Properties Trust .......... 161,256 192,050
10,366 Duke Realty Corp. .................. 270,627 309,425
7,800 First Potomac Realty Trust ......... 157,370 178,230
6,900 Getty Realty Corp. ................. 138,782 176,295
7,700 Lexington Corporate
Properties Trust ................ 126,927 168,938
7,800 Liberty Property Trust ............. 237,814 304,590
4,800 Tejon Ranch Co.+ ................... 155,135 214,080
8,200 Vornado Realty Trust ............... 440,927 568,014
------------ ------------
1,849,710 2,278,664
------------ ------------
ENTERTAINMENT -- 2.0%
16,700 Regal Entertainment Group, Cl. A ... 346,363 351,201
------------ ------------
HEALTH CARE -- 4.0%
14,900 Health Care Property Investors Inc. 290,316 349,703
5,000 Healthcare Realty Trust Inc.. ...... 185,350 182,200
6,200 Universal Health Realty
Income Trust .................... 181,940 175,150
------------ ------------
657,606 707,053
------------ ------------
HOTELS -- 5.4%
6,600 Hospitality Properties Trust. ...... 238,179 266,508
6,000 LaSalle Hotel Properties ........... 117,668 174,300
5,500 Starwood Hotels & Resorts
Worldwide Inc. .................. 146,122 330,165
8,300 Sunstone Hotel Investors Inc. ...... 182,896 178,035
------------ ------------
684,865 949,008
------------ ------------
INDUSTRIAL PROPERTY -- 3.9%
6,500 AMB Property Corp. ................. 202,465 245,700
4,700 EastGroup Properties Inc. .......... 162,258 177,190
6,800 ProLogis ........................... 193,059 252,280
------------ ------------
557,782 675,170
------------ ------------
MANUFACTURED HOUSING -- 1.6%
7,800 Equity Lifestyle Properties Inc. ... 245,927 274,950
------------ ------------
OFFICE PROPERTY -- 16.9%
4,700 Arden Realty Inc. .................. 110,821 159,095
6,300 Boston Properties Inc. ............. 259,649 379,449
6,300 Brandywine Realty Trust ............ 145,531 178,920
5,800 CarrAmerica Realty Corp. ........... 168,714 182,990
9,200 Cousins Properties Inc. ............ 249,739 238,004
10,900 Crescent Real Estate Equities Co. .. 174,721 178,106
7,700 CRT Properties Inc. ................ 177,805 167,706
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
18,184 Equity Office Properties Trust ..... $ 504,721 $ 547,884
6,500 Highwoods Properties Inc. .......... 142,854 174,330
6,200 Mack-Cali Realty Corp. ............. 207,957 262,570
10,100 Maguire Properties Inc. ............ 253,967 241,188
7,300 Prentiss Properties Trust .......... 214,291 249,368
------------ ------------
2,610,770 2,959,610
------------ ------------
PAPER AND FOREST PRODUCTS -- 2.1%
5,000 Plum Creek Timber Co. Inc. ......... 122,434 178,500
3,688 Rayonier Inc. ...................... 151,588 182,667
------------ ------------
274,022 361,167
------------ ------------
PUBLIC STORAGE -- 3.5%
14,100 Extra Space Storage Inc. ........... 178,540 190,350
4,600 Public Storage Inc. ................ 188,779 261,924
3,900 Sovran Self Storage Inc. ........... 108,431 154,557
------------ ------------
475,750 606,831
------------ ------------
SHOPPING CENTERS -- 19.2%
2,700 CBL & Associates Properties Inc. ... 99,366 193,077
8,281 Developers Diversified Realty Corp. 199,603 329,170
13,100 General Growth Properties Inc. ..... 312,405 446,710
5,500 Heritage Property Investment Trust . 157,310 163,240
6,450 Kimco Realty Corp. ................. 224,601 347,655
6,600 Ramco-Gershenson Properties Trust .. 136,620 179,190
11,500 Realty Income Corp. ................ 238,457 263,120
6,900 Regency Centers Corp. .............. 217,280 328,647
10,875 Simon Property Group Inc. .......... 387,489 658,807
12,975 Weingarten Realty Investors.. ...... 423,084 447,767
------------ ------------
2,396,215 3,357,383
------------ ------------
TELECOMMUNICATIONS -- 4.0%
17,600 Iowa Telecommunications
Services Inc. ................... 384,384 343,200
24,000 Valor Communications Group Inc. .... 360,526 347,280
------------ ------------
744,910 690,480
------------ ------------
TRANSPORTATION -- 4.8%
4,800 Alexander & Baldwin Inc. ........... 158,118 197,760
12,500 Arlington Tankers Ltd. ............. 289,875 293,750
20,500 Diana Shipping Inc.+ ............... 354,217 339,070
------------ ------------
802,210 830,580
------------ ------------
TOTAL COMMON STOCKS ................ 13,829,511 16,730,741
------------ ------------
PRINCIPAL
AMOUNT
- ----------
U.S. GOVERNMENT OBLIGATIONS -- 2.3%
U.S. TREASURY BILL -- 2.3%
$400,000 U.S. Treasury Bill,
2.678%++, 04/21/05............... 399,414 399,414
------------ ------------
TOTAL INVESTMENTS -- 98.1%... $ 14,228,925 17,130,155
============
OTHER ASSETS AND LIABILITIES (NET) -- 1.9%... 335,609
------------
NET ASSETS -- 100.0%......................... $ 17,465,764
============
- ------------------
For Federal tax purposes:
Aggregate cost............................... $ 14,228,925
============
Gross unrealized appreciation................ $ 3,020,221
Gross unrealized depreciation................ (118,991)
------------
Net unrealized appreciation (depreciation)... $ 2,901,230
============
- ------------------
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
See accompanying notes to financial statements.
12
THE WESTWOOD MIGHTY MITES(SM) FUND
SCHEDULE OF INVESTMENTS -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
COMMON STOCKS -- 98.7%
AGRICULTURE -- 0.2%
200 J.G. Boswell Co. ................... $ 124,000 $ 119,000
------------ ------------
AUTOMOTIVE: PARTS AND ACCESSORIES -- 5.8%
65,000 Midas Inc.+ ........................ 874,250 1,483,950
1,500 Puradyn Filter Technologies Inc.+ .. 2,895 1,410
50,000 Scheib (Earl) Inc.+ ................ 243,865 163,750
37,000 Standard Motor Products Inc. ....... 408,175 432,900
117,500 TransPro Inc.+ ..................... 536,825 763,750
------------ ------------
2,066,010 2,845,760
------------ ------------
AVIATION: PARTS AND SERVICES -- 1.8%
1,500 Aviall Inc.+ ....................... 18,315 42,000
12,500 CPI Aerostructures Inc.+ ........... 132,133 123,750
2,000 Curtiss-Wright Corp., Cl. B......... 43,050 112,800
140,000 Fairchild Corp., Cl. A+ ............ 715,485 434,000
12,000 Kaman Corp., Cl. A ................. 155,265 149,400
------------ ------------
1,064,248 861,950
------------ ------------
BROADCASTING -- 5.8%
60,000 Acme Communications Inc.+ .......... 364,898 316,200
25,000 Beasley Broadcast Group Inc.,
Cl. A+. ......................... 277,076 444,500
71,500 Crown Media Holdings Inc., Cl. A+ .. 532,715 644,215
12,000 Fisher Communications Inc.+......... 532,157 620,520
10,000 Granite Broadcasting Corp.+......... 15,250 3,000
27,000 Gray Television Inc. ............... 285,955 390,690
50,000 Paxson Communications Corp.+ ....... 194,448 34,500
7,000 Salem Communications Corp.,
Cl. A+ .......................... 126,904 144,200
30,000 Young Broadcasting Inc., Cl. A+ .... 288,879 259,200
------------ ------------
2,618,282 2,857,025
------------ ------------
BUILDING AND CONSTRUCTION -- 0.4%
10,907 Homasote Co.+ ...................... 85,994 36,811
5,000 Huttig Building Products Inc.+ ..... 17,126 54,650
5,100 Monarch Cement Co. ................. 105,456 114,750
------------ ------------
208,576 206,211
------------ ------------
BUSINESS SERVICES -- 2.8%
134,000 AMICAS Inc.+ ....................... 701,516 493,120
28,000 ANC Rental Corp.+ .................. 840 28
80,100 Edgewater Technology Inc.+ ......... 308,396 334,818
20,000 Information Resources Inc.+ ........ 32,400 16,000
46,000 Nashua Corp.+ ...................... 310,147 400,200
804 National Stock Yards Co. ........... 80,700 98,892
10,000 PubliCard Inc.+ .................... 14,436 260
500 StarTek Inc. ....................... 8,375 8,400
------------ ------------
1,456,810 1,351,718
------------ ------------
CABLE -- 0.1%
90,000 Adelphia Communications Corp.,
Cl. A+ .......................... 15,750 21,600
2,500 Outdoor Channel Holdings Inc.+ ..... 24,825 35,625
------------ ------------
40,575 57,225
------------ ------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
CLOSED-END FUNDS -- 0.5%
24,750 MVC Capital Inc. ................... $ 224,322 $ 229,680
------------ ------------
COMMUNICATIONS EQUIPMENT -- 0.3%
2,000 Andrew Corp.+ ...................... 6,827 23,420
10,000 Communications Systems Inc. ........ 84,990 114,000
------------ ------------
91,817 137,420
------------ ------------
COMPUTER SOFTWARE AND SERVICES -- 2.7%
25,000 Citadel Security Software Inc.+ .... 98,139 28,000
23,881 Gemplus International SA+ .......... 10,945 56,341
3,000 iVillage Inc.+ ..................... 2,520 18,270
5,600 Lab-Volt Systems Inc.+ ............. 31,800 51,240
35,000 Mobius Management
Systems Inc.+ ................... 288,281 229,250
480,000 Net Perceptions Inc.+ .............. 196,704 391,200
833 Prosoft Learning Corp.+ ............ 11,216 708
850,000 StorageNetworks Inc. Escrow+ ....... 0 25,500
57,000 Tyler Technologies Inc.+ ........... 223,611 433,770
30,000 Vitria Technology Inc.+ ............ 183,200 103,800
------------ ------------
1,046,416 1,338,079
------------ ------------
CONSUMER PRODUCTS -- 5.4%
68,000 Adams Golf Inc.+ ................... 115,878 98,600
9,300 American Locker Group Inc.+ ........ 114,326 50,220
16,000 CNS Inc. ........................... 164,720 284,800
12,000 Ducati Motor Holding SpA, ADR+ ..... 184,105 165,600
6,000 Levcor International Inc.+ ......... 20,801 12,300
4,500 Marine Products Corp. .............. 4,609 75,645
5,000 Marzotto SpA ....................... 32,778 104,676
500 National Presto Industries Inc. .... 14,537 20,150
41,530 Syratech Corp.+ .................... 10,383 2,699
21,000 Water Pik Technologies Inc.+ ....... 180,074 413,700
231,500 Weider Nutrition International Inc.+ 428,147 1,409,835
------------ ------------
1,270,358 2,638,225
------------ ------------
CONSUMER SERVICES -- 0.1%
200 Carriage Services Inc.+ ............ 1,014 1,114
1,000 Collectors Universe Inc.+ .......... 3,530 19,160
1,000 Neptune Society Inc.+ .............. 3,564 3,900
------------ ------------
8,108 24,174
------------ ------------
DIVERSIFIED INDUSTRIAL -- 4.6%
10,200 Ampco-Pittsburgh Corp. ............. 118,479 138,006
101,500 Harbor Global Co. Ltd.+ ............ 504,865 905,888
64,000 Katy Industries Inc.+ .............. 306,659 243,200
35,000 Lamson & Sessions Co.+ ............. 154,961 348,250
2,000 Lindsay Manufacturing Co. .......... 39,765 38,160
500 Oregon Steel Mills Inc.+ ........... 4,276 11,500
32,000 Pinguely-Haulotte .................. 171,236 338,488
11,750 RWC Inc.+ .......................... 281,315 52,875
30,000 Tech/Ops Sevcon Inc. ............... 175,053 191,400
------------ ------------
1,756,609 2,267,767
------------ ------------
See accompanying notes to financial statements.
13
THE WESTWOOD MIGHTY MITES(SM) FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
COMMON STOCKS (CONTINUED)
EDUCATIONAL SERVICES -- 1.0%
30,000 Concorde Career Colleges Inc.+ ..... $ 604,658 $ 510,000
------------ ------------
ELECTRONICS -- 1.1%
3,000 California Micro Devices Corp.+ .... 25,330 15,150
25,000 CTS Corp. .......................... 201,432 325,000
1,000 Fargo Electronics+ ................. 5,641 14,670
11,500 George Risk Industries Inc. ........ 52,760 68,138
2,000 Lowrance Electronics Inc. .......... 8,860 48,620
5,000 Zoran Corp.+ ....................... 32,186 51,750
------------ ------------
326,209 523,328
------------ ------------
ENERGY AND UTILITIES: ELECTRIC -- 0.6%
800 British Energy Group plc+ .......... 4,271 4,203
3,000 Green Mountain Power Corp. ......... 64,455 87,900
7,700 Unitil Corp. ....................... 189,620 196,735
------------ ------------
258,346 288,838
------------ ------------
ENERGY AND UTILITIES: INTEGRATED -- 1.9%
30,000 Aquila Inc.+ ....................... 86,160 114,900
21,300 Florida Public Utilities Co. ....... 276,065 400,440
10,000 MGE Energy Inc. .................... 317,483 331,500
800 Pardee Resources Co. Inc.+ (a) ..... 72,100 92,000
95,200 Progress Energy Inc., CVO+ ......... 10,472 12,376
------------ ------------
762,280 951,216
------------ ------------
ENERGY AND UTILITIES: NATURAL GAS -- 2.9%
4,500 Cascade Natural Gas Corp. .......... 92,754 89,820
11,800 Chesapeake Utilities Corp. ......... 265,346 313,880
17,314 Corning Natural Gas Corp.+ ......... 284,569 195,648
31,200 Petrocorp Escrow Shares+ ........... 0 1,872
10,000 Petroleum Development Corp.+ ....... 163,892 376,900
17,000 RGC Resources Inc. ................. 364,576 443,700
------------ ------------
1,171,137 1,421,820
------------ ------------
ENERGY AND UTILITIES: SERVICES -- 1.3%
1,000 KFx Inc.+ .......................... 7,920 13,400
28,500 RPC Inc. ........................... 259,619 432,915
24,000 Stolt Offshore SA, ADR+ ............ 72,875 188,640
------------ ------------
340,414 634,955
------------ ------------
ENERGY AND UTILITIES: WATER -- 1.3%
3,000 Artesian Resources Corp., Cl. A .... 48,062 78,180
1,500 BIW Ltd. ........................... 27,266 30,675
2,500 California Water Service Group ..... 55,552 83,425
1,000 Consolidated Water Co. Ltd. ........ 7,500 33,300
10,000 Middlesex Water Co. ................ 171,165 181,500
6,000 SJW Corp. .......................... 140,427 210,780
------------ ------------
449,972 617,860
------------ ------------
ENTERTAINMENT -- 1.9%
11,500 Canterbury Park Holding Corp. ...... 112,770 199,985
30,000 Dover Motorsports Inc. ............. 146,431 151,500
45,000 GC Companies Inc.+ ................. 67,956 38,700
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
27,000 Jetix Europe NV+ ................... $ 159,843 $ 486,499
2,500 LodgeNet Entertainment Corp.+ ...... 27,500 47,100
------------ ------------
514,500 923,784
------------ ------------
EQUIPMENT AND SUPPLIES -- 6.9%
180,000 Baldwin Technology Co. Inc.,
Cl. A+. ......................... 339,712 432,000
15,000 Capstone Turbine Corp.+ ............ 27,450 23,250
83,000 Core Molding Technologies Inc.+ .... 178,917 414,170
7,000 Eastern Co. ........................ 115,764 154,700
60,000 Fedders Corp. ...................... 432,705 166,800
10,000 Gerber Scientific Inc.+ ............ 33,933 72,800
10,000 Gildemeister AG+ ................... 75,736 72,592
20,500 L.S. Starrett Co., Cl. A ........... 332,496 397,700
43,000 Maezawa Kyuso
Industries Co. Ltd. ............. 232,647 653,241
9,800 Mine Safety Appliances Co. ......... 262,315 379,652
57,000 Raytech Corp.+ ..................... 184,407 83,505
157,000 Selas Corp. of America+ ............ 490,079 293,590
15,400 SL Industries Inc.+ ................ 107,010 215,138
1,000 SRS Labs Inc.+ ..................... 5,500 3,990
1,100 Watts Water Technologies Inc.,
Cl. A ........................... 16,825 35,871
------------ ------------
2,835,496 3,398,999
------------ ------------
FINANCIAL SERVICES -- 15.7%
11,100 Bancshares of Florida Inc.+ ........ 158,871 177,600
23,000 Berkshire Bancorp Inc. ............. 274,313 461,242
14,500 BKF Capital Group Inc. ............. 353,847 580,145
11,000 Crazy Woman Creek Bancorp Inc. ..... 143,391 178,750
747 Danielson Holding Corp.+ ........... 2,531 12,886
623,000 Epoch Holding Corp.+ ............... 978,411 2,959,250
5,500 Fidelity Southern Corp. ............ 44,340 92,400
35,000 Flushing Financial Corp. ........... 526,408 637,000
25,000 Fulton Financial Corp. ............. 204,658 544,750
10 Guaranty Corp., Cl. A+ ............. 137,500 162,000
200 Hartville Group Inc.+ .............. 252 128
60,000 Ladenburg Thalmann Financial
Services Inc.+ .................. 43,958 40,800
1,000 NewAlliance Bancshares Inc. ........ 14,650 14,000
7,500 Northrim BanCorp Inc. .............. 157,685 187,500
6,790 Parish National Corp.+ ............. 255,328 393,820
7,000 Patriot National Bancorp Inc. ...... 104,908 127,750
5,000 PennFed Financial Services Inc. .... 86,387 74,200
12,500 Seacoast Banking Corp. of Florida .. 240,300 246,000
116 Sunwest Bank+ ...................... 322,734 365,421
15,000 SWS Group Inc. ..................... 274,802 240,450
15,700 Synergy Financial Group Inc. ....... 160,223 189,813
500 TIB Financial Corp. ................ 7,780 14,000
400 Washington Savings Bank F.S.B. ..... 5,810 4,668
------------ ------------
4,499,087 7,704,573
------------ ------------
See accompanying notes to financial statements.
14
THE WESTWOOD MIGHTY MITES(SM) FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
COMMON STOCKS (CONTINUED)
FOOD AND BEVERAGE -- 1.9%
9,200 Boston Beer Co. Inc., Cl. A+. ...... $ 149,134 $ 201,480
4,000 Genesee Corp., Cl. A+ .............. 13,980 8,000
30,100 Genesee Corp., Cl. B+ .............. 55,564 60,200
2,000 J & J Snack Foods Corp. ............ 58,185 93,660
11,000 Lifeway Foods Inc.+ ................ 78,614 93,511
35,000 MGP Ingredients Inc. ............... 168,688 291,900
20,000 Northland Cranberries Inc., Cl. A .. 15,400 7,700
1,000 Poore Brothers Inc.+ ............... 2,660 3,051
8,500 Scheid Vineyards Inc., Cl. A+ ...... 47,912 53,125
4,000 Seneca Foods Corp., Cl. A+ ......... 61,000 67,800
5,000 Todhunter International Inc.+ ...... 53,388 65,250
------------ ------------
704,525 945,677
------------ ------------
HEALTH CARE -- 12.0%
17,040 Arkopharma ......................... 243,837 295,991
87,000 BioLase Technology Inc. ............ 1,029,802 739,500
8,000 Biosite Inc.+ ...................... 245,280 416,240
15,000 Boiron SA .......................... 243,759 458,110
7,000 Bruker BioSciences Corp.+ .......... 27,970 24,640
46,400 Cholestech Corp.+ .................. 357,002 467,712
100,000 Del Global Technologies Corp.+ ..... 215,065 315,000
15,100 Exactech Inc.+ ..................... 233,128 256,247
2,500 ICU Medical Inc.+ .................. 77,295 88,750
71,000 Lifecore Biomedical Inc.+ .......... 551,142 1,261,670
17,000 Neogen Corp.+ ...................... 193,951 251,277
2,500 NMT Medical Inc.+ .................. 7,858 20,500
11,000 NWH Inc. ........................... 203,610 162,800
3,500 Orthofix International NV+ ......... 94,808 137,025
38,000 Regeneration Technologies Inc.+ .... 343,755 391,780
13,000 Schick Technologies Inc.+ .......... 104,002 224,250
1,000 Sonic Innovations Inc.+ ............ 4,439 5,580
17,000 Thoratec Corp.+ .................... 199,397 207,740
2,000 Tutogen Medical Inc.+ .............. 10,180 4,740
500 United-Guardian Inc. ............... 3,895 3,745
6,000 Women First HealthCare Inc.+. ...... 4,875 6
5,000 Young Innovations Inc. ............. 135,279 183,250
------------ ------------
4,530,329 5,916,553
------------ ------------
HOTELS AND GAMING -- 0.3%
9,024 Dover Downs Gaming &
Entertainment Inc. .............. 84,943 112,349
29 Fair Grounds Corp.+ (a) ............ 177,460 33,821
2,000 Florida Gaming Corp.+ .............. 6,950 11,600
------------ ------------
269,353 157,770
------------ ------------
MANUFACTURED HOUSING AND RECREATIONAL VEHICLES -- 8.7%
100,000 Cavalier Homes Inc.+ ............... 547,235 537,000
35,500 Cavco Industries Inc.+ ............. 653,823 858,426
16,000 Nobility Homes Inc. ................ 250,956 334,400
19,000 Palm Harbor Homes Inc.+ ............ 388,657 308,940
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
41,500 Skyline Corp. ...................... $ 1,387,525 $ 1,597,335
113,000 Southern Energy Homes Inc.+ ........ 428,738 621,500
------------ ------------
3,656,934 4,257,601
------------ ------------
METALS AND MINING -- 0.0%
615,000 Royal Oak Mines Inc.+ .............. 2,314 1,845
------------ ------------
PAPER AND FOREST PRODUCTS -- 0.5%
300 Keweenaw Land Association Ltd. ..... 46,200 48,300
15,000 Packaging Dynamics Corp. ........... 111,035 209,850
------------ ------------
157,235 258,150
------------ ------------
PUBLISHING -- 1.9%
100,000 PRIMEDIA Inc.+ ..................... 190,965 435,000
14,500 Thomas Nelson Inc. ................. 152,716 342,925
5,500 William H. Sadlier Inc. ............ 154,564 151,250
------------ ------------
498,245 929,175
------------ ------------
REAL ESTATE -- 3.4%
12,000 Biloxi Marsh Lands Corp. ........... 93,653 747,000
10,000 Calcasieu Real Estate &
Oil Co. Inc. .................... 72,375 129,700
5,000 Capital Properties Inc., Cl. A ..... 73,300 94,875
50 Case Pomeroy & Co. Inc., Cl. A ..... 58,825 63,750
50 Case Pomeroy & Co. Inc., Cl. B ..... 58,825 51,250
500 Consolidated-Tomoka Land Co. ....... 10,520 28,615
14,000 Griffin Land & Nurseries Inc.+ ..... 268,252 364,000
4,500 Gyrodyne Company of
America Inc.+ ................... 74,299 193,455
2,508 Royalty Ll+ ........................ 0 0
------------ ------------
710,049 1,672,645
------------ ------------
RESTAURANTS -- 0.4%
24,500 Nathan's Famous Inc.+ .............. 169,007 207,025
------------ ------------
RETAIL -- 0.6%
1,200 Bowlin Travel Centers Inc.+ ........ 1,800 2,358
4,000 CoolBrands International Inc.+ ..... 5,397 29,594
500 Cost-U-Less Inc.+ .................. 2,747 5,580
1,000 Gander Mountain Co.+ ............... 13,345 13,100
12,000 Movado Group Inc. .................. 171,186 222,000
8,000 Sport Supply Group Inc.+ ........... 10,250 22,800
------------ ------------
204,725 295,432
------------ ------------
SPECIALTY CHEMICALS -- 1.3%
267,226 General Chemical Group Inc.+ ....... 59,859 6,413
1,000 KMG Chemicals Inc. ................. 3,270 6,500
22,000 Material Sciences Corp.+ ........... 251,930 295,900
57,000 Omnova Solutions Inc.+ ............. 315,576 306,090
------------ ------------
630,635 614,903
------------ ------------
TELECOMMUNICATIONS -- 2.3%
1,000 Ambient Corp.+ ..................... 280 280
32,540 ATX Communications Inc.+ ........... 68,495 667
See accompanying notes to financial statements.
15
THE WESTWOOD MIGHTY MITES(SM) FUND
SCHEDULE OF INVESTMENTS (CONTINUED) -- MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
COMMON STOCKS (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
25,896 D&E Communications Inc. ............ $ 290,401 $ 236,430
13,000 HickoryTech Corp. .................. 154,118 132,080
80 Horizon Telecom Inc., Cl. A (a) .... 9,250 11,000
339 Horizon Telecom Inc., Cl. B (a) .... 39,073 46,612
1,500 Lexcom Inc., Cl. B ................. 86,355 62,437
18,876 New Ulm Telecom Inc. ............... 182,554 167,525
922 NTL Inc.+ .......................... 31,540 58,704
10,000 PNV Inc.+ .......................... 3 26
6,600 Shenandoah
Telecommunications Co. .......... 101,736 204,600
10,000 Stratos International Inc.+ ........ 38,124 43,500
500 SureWest Communications ............ 13,332 11,530
50,000 Sycamore Networks Inc.+ ............ 164,231 178,000
------------ ------------
1,179,492 1,153,391
------------ ------------
TRANSPORTATION -- 0.2%
2,500 Old Dominion Freight Line Inc.+ .... 53,376 77,875
------------ ------------
WIRELESS COMMUNICATIONS -- 0.1%
9,000 Rural Cellular Corp., Cl. A+. ...... 7,830 47,610
------------ ------------
TOTAL COMMON STOCKS ................ 36,512,279 48,445,259
------------ ------------
PREFERRED STOCKS -- 1.0%
AUTOMOTIVE: PARTS AND ACCESSORIES -- 0.9%
21,000 Jungheinrich AG Pfd. ............... 170,462 440,727
------------ ------------
DIVERSIFIED INDUSTRIAL -- 0.1%
22,000 WHX Corp.,
$3.75 Cv. Pfd., Ser. B+ ......... 112,890 60,500
------------ ------------
TOTAL PREFERRED STOCKS ............. 283,352 501,227
------------ ------------
CONVERTIBLE PREFERRED STOCKS -- 0.4%
BUSINESS SERVICES -- 0.4%
6,485 Interep National Radio Sales Inc.,
4.000% Cv. Pfd., Ser. A (a)(b)(c) 648,944 194,343
------------ ------------
DIVERSIFIED INDUSTRIAL -- 0.0%
5,500 WHX Corp.,
6.500% Cv. Pfd., Ser. A+ ........ 33,640 15,125
------------ ------------
TOTAL CONVERTIBLE
PREFERRED STOCKS ................ 682,584 209,468
------------ ------------
MARKET
SHARES COST VALUE
- ---------- ------------ ------------
WARRANTS -- 0.0%
BUSINESS SERVICES -- 0.0%
1,666 Avalon Digital Marketing Systems Inc.,
expires 11/11/11+ (a)(c) ........ $ 0 $ 0
37,500 Interep National Radio Sales Inc.,
expires 05/06/07+ (a)(b)(c) ..... 0 0
------------ ------------
0 0
------------ ------------
ENERGY AND UTILITIES: ELECTRIC -- 0.0%
1,680 British Energy Group plc,
expires 01/14/09+ ............... 5,489 6,080
------------ ------------
TOTAL WARRANTS .................. 5,489 6,080
------------ ------------
TOTAL INVESTMENTS -- 100.1% $ 37,483,704 49,162,034
============
OTHER ASSETS AND LIABILITIES (NET) -- (0.1)% ... (56,804)
------------
NET ASSETS -- 100.0% ........................... $ 49,105,230
============
- ------------------
For Federal tax purposes:
Aggregate cost .................................... $ 37,483,704
============
Gross unrealized appreciation ..................... $ 15,455,437
Gross unrealized depreciation ..................... (3,777,107)
------------
Net unrealized appreciation (depreciation)......... $ 11,678,330
============
- ------------------
(a) Security fair valued under procedures established by the Board of
Trustees. The aggregate value of fair valued securities is $377,776 or
0.77% of net assets. See Note 2 to the financial statements.
(b) Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At March
31, 2005, the market value of Rule 144A securities amounted to $194,343 or
0.40% of total investments.
(c) At March 31, 2005, the Fund held investments in restricted and illiquid
securities that were valued under methods approved by the Board, as
follows:
3/31/05
CARRYING
ACQUISITION ACQUISITION ACQUISITION VALUE
SHARES ISSUER DATE COST PER UNIT
- ---------- ------ ----------- ----------- ---------
1,666 Avalon Digital Marketing Systems, Inc.
Warrants expire 11/11/11...... 04/03/00 -- --
6,485 Interep National Radio Sales Inc.,
4.000% Cv. Pfd., Ser. A ...... 05/03/02 $ 648,944 $ 29.9681
37,500 Interep National Radio Sales Inc.
Warrants expire 05/06/07 ..... 05/03/02 -- --
+ Non-income producing security.
ADR - American Depository Receipt.
CVO - Contingent Value Obligation.
See accompanying notes to financial statements.
16
THE WESTWOOD FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY BALANCED INTERMEDIATE
FUND FUND BOND FUND
------------- ------------- --------------
ASSETS:
Investments, at value (Cost $142,289,816,
$129,673,627, $10,240,056, $7,762,900,
$14,228,925 and $37,483,704, respectively) $ 173,294,232 $ 146,556,136 $ 10,279,232
Cash ......................................... 863,853 430,350 140,522
Receivable for investments sold .............. 1,673,046 390,878 --
Receivable for Fund shares sold .............. 48,637 219,724 236
Dividends and interest receivable ............ 401,269 661,655 87,818
Receivable from Adviser ...................... -- -- 1,788
Other assets ................................. 6,247 5,057 1,329
------------- ------------- --------------
TOTAL ASSETS ................................. 176,287,284 148,263,800 10,510,925
------------- ------------- --------------
LIABILITIES:
Dividends payable ............................ -- -- 27,621
Payable for Fund shares redeemed ............. 1,823 27,085 --
Payable for investments purchased ............ 1,069,881 148,315 --
Payable for investment advisory fees ......... 150,570 94,590 --
Payable for distribution fees ................ 38,217 33,449 2,513
Payable for shareholder services fees ........ 77,027 42,908 4,568
Payable to custodian ......................... -- -- --
Other accrued expenses and liabilities ....... 60,003 48,097 10,817
------------- ------------- --------------
TOTAL LIABILITIES ............................ 1,397,521 394,444 45,519
------------- ------------- --------------
NET ASSETS ................................... $ 174,889,763 $ 147,869,356 $ 10,465,406
============= ============= ==============
NET ASSETS CONSIST OF:
Share of beneficial interest,
at $0.001 par value ....................... $ 17,154 $ 12,222 $ 960
Additional paid-in capital ................... 159,351,618 127,410,411 10,420,690
Accumulated (distributions in excess of) net
investment income (loss) .................. 257,224 70,148 (428)
Accumulated net realized gain (loss) on
investments ............................... (15,740,649) 3,494,066 5,008
Net unrealized appreciation on investments ... 31,004,416 16,882,509 39,176
------------- ------------- --------------
NET ASSETS ................................... $ 174,889,763 $ 147,869,356 $ 10,465,406
============= ============= ==============
SHARES OF BENEFICIAL INTEREST:
CLASS AAA:
Net assets ................................... $ 172,617,049 $ 141,028,506 $ 9,973,953
============= ============= ==============
Shares of beneficial interest outstanding .... 16,931,153 11,656,364 914,974
============= ============= ==============
NET ASSET VALUE, offering and redemption
price per share ........................... $ 10.20 $ 12.10 $ 10.90
============= ============= ==============
CLASS A:
Net assets ................................... $ 2,067,266 $ 5,784,427 $ 63,464
============= ============= ==============
Shares of beneficial interest outstanding .... 202,943 478,296 5,823
============= ============= ==============
NET ASSET VALUE and redemption price
per share ................................. $ 10.19 $ 12.09 $ 10.90
============= ============= ==============
Maximum offering price per share (NAV / 0.96,
based on maximum sales charge of
4.00% of the offering price) .............. $ 10.61 $ 12.59 $ 11.35
============= ============= ==============
CLASS B:
Net assets ................................... $ 39,505 $ 151,326 $ 427,885
============= ============= ==============
Shares of beneficial interest outstanding .... 3,901 12,487 39,270
============= ============= ==============
NET ASSET VALUE and offering price per share . $ 10.13(a) $ 12.12(a) $ 10.90(a)
============= ============= ==============
CLASS C:
Net assets ................................... $ 165,943 $ 905,097 $ 104
============= ============= ==============
Shares of beneficial interest outstanding .... 16,378 74,603 9.62
============= ============= ==============
NET ASSET VALUE and offering price per share $ 10.13(a) $ 12.13(a) $ 10.81(a)
============= ============= ==============
SMALLCAP REALTY MIGHTY
EQUITY FUND FUND MITES(SM) FUND
------------- ------------- --------------
ASSETS:
Investments, at value (Cost $142,289,816,
$129,673,627, $10,240,056, $7,762,900,
$14,228,925 and $37,483,704, respectively) $ 8,336,351 $ 17,130,155 $ 49,162,034
Cash ......................................... 40,657 285,045 --
Receivable for investments sold .............. 100,279 -- 235,663
Receivable for Fund shares sold .............. -- 1,518 --
Dividends and interest receivable ............ 12,416 77,229 42,309
Receivable from Adviser ...................... -- -- --
Other assets ................................. 1,417 1,549 2,469
------------- ------------- --------------
TOTAL ASSETS ................................. 8,491,120 17,495,496 49,442,475
------------- ------------- --------------
LIABILITIES:
Dividends payable ............................ -- -- --
Payable for Fund shares redeemed ............. -- -- 676
Payable for investments purchased ............ 42,468 -- 95,950
Payable for investment advisory fees ......... 948 11,584 31,979
Payable for distribution fees ................ 1,858 3,870 11,314
Payable for shareholder services fees ........ 3,149 3,826 22,727
Payable to custodian ......................... -- -- 143,748
Other accrued expenses and liabilities ....... 15,184 10,452 30,851
------------- ------------- --------------
TOTAL LIABILITIES ............................ 63,607 29,732 337,245
------------- ------------- --------------
NET ASSETS ................................... $ 8,427,513 $ 17,465,764 $ 49,105,230
============= ============= ==============
NET ASSETS CONSIST OF:
Share of beneficial interest,
at $0.001 par value ....................... $ 825 $ 1,219 $ 3,145
Additional paid-in capital ................... 17,479,491 13,117,174 35,114,677
Accumulated (distributions in excess of) net
investment income (loss) .................. (3,247) 181,502 33,819
Accumulated net realized gain (loss) on
investments ............................... (9,623,007) 1,264,639 2,274,972
Net unrealized appreciation on investments ... 573,451 2,901,230 11,678,617
------------- ------------- --------------
NET ASSETS ................................... $ 8,427,513 $ 17,465,764 $ 49,105,230
============= ============= ==============
SHARES OF BENEFICIAL INTEREST:
CLASS AAA:
Net assets ................................... $ 8,289,042 $ 17,407,071 $ 48,302,870
============= ============= ==============
Shares of beneficial interest outstanding .... 811,421 1,215,103 3,092,596
============= ============= ==============
NET ASSET VALUE, offering and redemption
price per share ........................... $ 10.22 $ 14.33 $ 15.62
============= ============= ==============
CLASS A:
Net assets ................................... $ 119,162 $ 48,124 $ 44,264
============= ============= ==============
Shares of beneficial interest outstanding .... 11,695 3,312 2,836
============= ============= ==============
NET ASSET VALUE and redemption price
per share ................................. $ 10.19 $ 14.53 $ 15.61
============= ============= ==============
Maximum offering price per share (NAV / 0.96,
based on maximum sales charge of
4.00% of the offering price) .............. $ 10.61 $ 15.14 $ 16.26
============= ============= ==============
CLASS B:
Net assets ................................... $ 19,208 $ 1,829 $ 412,723
============= ============= ==============
Shares of beneficial interest outstanding .... 1,934 125.1 27,008
============= ============= ==============
NET ASSET VALUE and offering price per share . $ 9.93(a) $ 14.62(a) $ 15.28(a)
============= ============= ==============
CLASS C:
Net assets ................................... $ 101.08 $ 8,740 $ 345,373
============= ============= ==============
Shares of beneficial interest outstanding .... 10.091 584 22,696
============= ============= ==============
NET ASSET VALUE and offering price per share . $ 10.02(a) $ 14.97(a) $ 15.22(a)
============= ============= ==============
- ------------------
(a) Redemption price varies based on length of time held.
See accompanying notes to financial statements.
17
THE WESTWOOD FUNDS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2005 (UNAUDITED)
- --------------------------------------------------------------------------------
EQUITY BALANCED INTERMEDIATE SMALLCAP REALTY MIGHTY
FUND FUND BOND FUND EQUITY FUND FUND MITES(SM) FUND
------------ ------------ ------------ ------------ ------------ --------------
INVESTMENT INCOME:
Dividends (net of foreign taxes of $0, $0,
$0, $0, $0 and $422, respectively)...... $ 2,440,272 $ 1,205,616 -- $ 84,838 $ 506,102 $ 390,597
Interest.................................. 267 1,073,125 $ 207,863 -- 474 5,778
------------ ------------ ------------ ------------ ------------ --------------
TOTAL INVESTMENT INCOME .................. 2,440,539 2,278,741 207,863 84,838 506,576 396,375
------------ ------------ ------------ ------------ ------------ --------------
EXPENSES:
Investment advisory fees ................. 900,299 543,824 31,192 58,566 90,760 257,271
Distribution fees -- Class AAA ........... 221,727 173,132 12,353 14,465 22,634 63,338
Distribution fees -- Class A.............. 6,199 13,627 126 296 86 105
Distribution fees -- Class B.............. 193 741 2,213 99 9 2,053
Distribution fees -- Class C.............. 798 4,576 1 17 43 1,655
Legal and audit fees ..................... 48,215 40,410 13,716 15,607 11,749 19,808
Custodian fees ........................... 14,822 17,651 6,027 9,944 14,581 20,585
Shareholder services fees ................ 82,439 58,451 7,060 7,357 8,813 30,061
Registration fees ........................ 18,040 15,866 12,135 12,013 13,879 19,752
Shareholder communications expenses ...... 31,749 18,664 1,730 2,871 2,940 9,803
Trustees' fees............................ 5,361 4,256 304 372 532 1,535
Miscellaneous expenses ................... 28,100 25,612 4,260 2,810 2,928 22,058
------------ ------------ ------------ ------------ ------------ --------------
TOTAL EXPENSES ........................... 1,357,942 916,810 91,117 124,417 168,954 448,024
------------ ------------ ------------ ------------ ------------ --------------
LESS:
Expense reimbursements (see Note 3).... -- -- (35,486) (35,496) (19,145) (59,284)
Custodian fee credits ................. (8,082) (17,408) (1,948) (836) (13,587) --
------------ ------------ ------------ ------------ ------------ --------------
TOTAL REIMBURSEMENTS AND CREDITS ...... (8,082) (17,408) (37,434) (36,332) (32,732) (59,284)
------------ ------------ ------------ ------------ ------------ --------------
TOTAL NET EXPENSES ....................... 1,349,860 899,402 53,683 88,085 136,222 388,740
------------ ------------ ------------ ------------ ------------ --------------
NET INVESTMENT INCOME (LOSS) ............. 1,090,679 1,379,339 154,180 (3,247) 370,354 7,635
------------ ------------ ------------ ------------ ------------ --------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY:
Net realized gain on investments and
foreign currency transactions.......... 13,882,181 7,076,353 23,202 1,687,542 1,402,977 2,806,686
Net change in unrealized appreciation/
depreciation on investments and
foreign currency translations.......... 3,032,985 544,165 (198,324) (186,566) (547,159) 3,255,755
------------ ------------ ------------ ------------ ------------ --------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS AND FOREIGN CURRENCY.... 16,915,166 7,620,518 (175,122) 1,500,976 855,818 6,062,441
------------ ------------ ------------ ------------ ------------ --------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS.............. $ 18,005,845 $ 8,999,857 $ (20,942) $ 1,497,729 $ 1,226,172 $ 6,070,076
============ ============ ============ ============ ============ ==============
See accompanying notes to financial statements.
18
THE WESTWOOD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
EQUITY FUND BALANCED FUND
------------------------------ ------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, MARCH 31, 2005 SEPTEMBER 30,
(UNAUDITED) 2004 (UNAUDITED) 2004
-------------- ------------- -------------- -------------
OPERATIONS:
Net investment income (loss) ................................. $ 1,090,679 $ 1,836,819 $ 1,379,339 $ 2,809,596
Net realized gain (loss) on investments ...................... 13,882,181 12,951,512 7,076,353 5,341,452
Net change in unrealized appreciation/depreciation
on investments ............................................ 3,032,985 19,598,673 544,165 7,980,425
-------------- ------------- -------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......... 18,005,845 34,387,004 8,999,857 16,131,473
-------------- ------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA .................................................... (1,760,755) (2,610,574) (1,278,543) (2,712,732)
Class A ...................................................... (8,953) (33,292) (30,342) (88,575)
Class B ...................................................... -- (658) (33) (2,302)
Class C ...................................................... (502) -- (273) (9,907)
-------------- ------------- -------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (1,770,210) (2,644,524) (1,309,191) (2,813,516)
-------------- ------------- -------------- -------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Class AAA ................................................. 13,717,609 40,481,821 14,982,898 32,079,495
Class A ................................................... 138,973 739,947 445,880 346,618
Class B ................................................... -- 6,837 -- 27,409
Class C ................................................... -- 10,387 115,700 919,608
-------------- ------------- -------------- -------------
13,856,582 41,238,992 15,544,478 33,373,130
-------------- ------------- -------------- -------------
Proceeds from reinvestment of dividends
Class AAA ................................................. 1,608,725 2,404,917 1,190,317 2,514,096
Class A ................................................... 8,445 32,283 25,126 72,907
Class B ................................................... -- 399 28 2,035
Class C ................................................... 502 -- 178 6,158
-------------- ------------- -------------- -------------
1,617,672 2,437,599 1,215,649 2,595,196
-------------- ------------- -------------- -------------
Cost of shares redeemed
Class AAA ................................................. (38,062,816) (116,358,886) (18,875,059) (63,378,286)
Class A ................................................... (1,678,164) (841,291) (289,746) (646,777)
Class B ................................................... (1,633) (53,946) (20,093) (66,789)
Class C ................................................... (840) (9,276) (109,975) (608,535)
-------------- ------------- -------------- -------------
(39,743,453) (117,263,399) (19,294,873) (64,700,387)
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
SHARES OF BENEFICIAL INTEREST TRANSACTIONS ................ (24,269,199) (73,586,808) (2,534,746) (28,732,061)
-------------- ------------- -------------- -------------
REDEMPTION FEES .............................................. (1,246) 7,830 6,166 2,085
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ........................ (8,034,810) (41,836,498) 5,162,086 (15,412,019)
NET ASSETS:
Beginning of period .......................................... 182,924,573 224,761,071 142,707,270 158,119,289
-------------- ------------- -------------- -------------
End of period ................................................ $ 174,889,763 $ 182,924,573 $ 147,869,356 $ 142,707,270
============== ============= ============== =============
Undistributed net investment income .......................... $ 257,224 $ 936,755 $ 70,148 $ --
============== ============= ============== =============
See accompanying notes to financial statements.
19
THE WESTWOOD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
INTERMEDIATE BOND FUND SMALLCAP EQUITY FUND
------------------------------ ------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, MARCH 31, 2005 SEPTEMBER 30,
(UNAUDITED) 2004 (UNAUDITED) 2004
-------------- ------------- -------------- -------------
OPERATIONS:
Net investment income (loss) ................................. $ 154,180 $ 315,825 $ (3,247) $ (148,137)
Net realized gain (loss) on investments ...................... 23,202 89,104 1,687,542 2,782,169
Net change in unrealized appreciation/depreciation
on investments ............................................. (198,324) (240,477) (186,566) (561,144)
Net increase from payments by affiliates and net gains
(losses) realized on the disposal of investments
in excess of restrictions (See Note 6) ..................... -- -- -- --
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS .................................. (20,942) 164,452 1,497,729 2,072,888
-------------- ------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA .................................................... (148,168) (302,691) -- --
Class A ...................................................... (1,038) (2,749) -- --
Class B ...................................................... (4,972) (9,589) -- --
Class C ...................................................... (2) (796) -- --
-------------- ------------- -------------- -------------
(154,180) (315,825) -- --
-------------- ------------- -------------- -------------
Net realized gain on investment transactions
Class AAA .................................................... (85,504) (12,960) -- --
Class A ...................................................... (644) (124) -- --
Class B ...................................................... (3,790) (478) -- --
Class C ...................................................... (1) (55) -- --
-------------- ------------- -------------- -------------
(89,939) (13,617) -- --
-------------- ------------- -------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (244,119) (329,442) -- --
-------------- ------------- -------------- -------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Class AAA ................................................. 1,044,453 1,979,778 1,019,076 15,506,831
Class A ................................................... 1,440 2,800 -- 15,000
Class B ................................................... 1,152 79,307 -- 350
Class C ................................................... -- 2 -- --
-------------- ------------- -------------- -------------
1,047,045 2,061,887 1,019,076 15,522,181
-------------- ------------- -------------- -------------
Proceeds from reinvestment of dividends
Class AAA ................................................. 189,216 279,339 -- --
Class A ................................................... 1,516 2,791 -- --
Class B ................................................... 3,542 4,539 -- --
Class C ................................................... -- 814 -- --
-------------- ------------- -------------- -------------
194,274 287,483 -- --
-------------- ------------- -------------- -------------
Cost of shares redeemed
Class AAA ................................................. (560,794) (4,724,149) (6,316,091) (21,176,934)
Class A ................................................... (13,000) (67,125) (34,315) --
Class B ................................................... (21,476) (123,006) (3,343) (49,941)
Class C ................................................... -- (45,792) (10,985) (101,961)
-------------- ------------- -------------- -------------
(595,270) (4,960,072) (6,364,734) (21,328,836)
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARES
OF BENEFICIAL INTEREST TRANSACTIONS ............................. 646,049 (2,610,702) (5,345,658) (5,806,655)
-------------- ------------- -------------- -------------
REDEMPTION FEES .............................................. (78) 194 (155) 396
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ........................ 380,910 (2,775,498) (3,848,084) (3,733,371)
NET ASSETS:
Beginning of period ............................................. 10,084,496 12,859,994 12,275,597 16,008,968
-------------- ------------- -------------- -------------
End of period ................................................ $ 10,465,406 $ 10,084,496 $ 8,427,513 $ 12,275,597
============== ============= ============== =============
Undistributed net investment income ............................. $ -- $ -- $ -- $ --
============== ============= ============== =============
See accompanying notes to financial statements.
20
THE WESTWOOD FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
- --------------------------------------------------------------------------------
REALTY FUND MIGHTY MITES(SM) FUND
------------------------------ ------------------------------
FOR THE SIX FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, MARCH 31, 2005 SEPTEMBER 30,
(UNAUDITED) 2004 (UNAUDITED) 2004
-------------- ------------- -------------- -------------
OPERATIONS:
Net investment income (loss) ................................. $ 370,354 $ 388,106 $ 7,635 $ (127,799)
Net realized gain (loss) on investments and
foreign currency transactions ............................. 1,402,977 1,063,262 2,806,686 3,983,019
Net change in unrealized appreciation/depreciation on
investments and foreign currency translations ............. (547,159) 1,402,579 3,255,755 2,813,159
-------------- ------------- -------------- -------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......... 1,226,172 2,853,947 6,070,076 6,668,379
-------------- ------------- -------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income
Class AAA ................................................. (188,333) (387,478) -- --
Class A ................................................... (499) (503) -- --
Class B ................................................... (3) (32) -- --
Class C ................................................... (17) (93) -- --
-------------- ------------- -------------- -------------
(188,852) (388,106) -- --
-------------- ------------- -------------- -------------
Net realized gain on investment transactions
Class AAA ................................................. (885,319) (58,855) (4,019,291) (661,777)
Class A ................................................... (2,234) (76) (3,339) (388)
Class B ................................................... (87) (5) (34,684) (5,992)
Class C ................................................... (407) (14) (26,813) (1,697)
-------------- ------------- -------------- -------------
(888,047) (58,950) (4,084,127) (669,854)
-------------- ------------- -------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......................... (1,076,899) (447,056) (4,084,127) (669,854)
-------------- ------------- -------------- -------------
SHARES OF BENEFICIAL INTEREST TRANSACTIONS:
Proceeds from shares issued
Class AAA ................................................. 2,672,941 6,942,146 740,063 52,277,745
Class A ................................................... 46,994 29,047 576 1,694
Class B ................................................... -- -- -- 10,286
Class C ................................................... 3,018 -- 600 203,866
-------------- ------------- -------------- -------------
2,722,953 6,971,193 741,239 52,493,591
-------------- ------------- -------------- -------------
Proceeds from reinvestment of dividends
Class AAA ................................................. 1,008,777 407,356 3,747,946 577,769
Class A ................................................... 2,724 576 3,328 387
Class B ................................................... 83 34 31,868 5,990
Class C ................................................... 416 104 26,802 1,696
-------------- ------------- -------------- -------------
1,012,000 408,070 3,809,944 585,842
-------------- ------------- -------------- -------------
Cost of shares redeemed
Class AAA ................................................. (2,905,466) (7,202,768) (8,951,930) (59,054,214)
Class A ................................................... (3,263) (39,859) -- --
Class B ................................................... -- -- (31,942) (192,800)
Class C ................................................... -- -- (10) (11,877)
-------------- ------------- -------------- -------------
(2,908,729) (7,242,627) (8,983,882) (59,258,891)
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS FROM SHARES OF
BENEFICIAL INTEREST TRANSACTIONS .......................... 826,224 136,636 (4,432,699) (6,179,458)
-------------- ------------- -------------- -------------
REDEMPTION FEES ............................................. 6,511 984 12 461
-------------- ------------- -------------- -------------
NET INCREASE (DECREASE) IN NET ASSETS ........................ 982,008 2,544,511 (2,446,738) (180,472)
NET ASSETS:
Beginning of period .......................................... 16,483,756 13,939,245 51,551,968 51,732,440
-------------- ------------- -------------- -------------
End of period ................................................ $ 17,465,764 $ 16,483,756 $ 49,105,230 $ 51,551,968
============== ============= ============== =============
Undistributed net investment income .......................... $ 181,502 $ -- $ 33,819 $ 26,184
============== ============= ============== =============
See accompanying notes to financial statements
21
THE WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION. The Westwood Funds (the "Trust") is registered under the
Investment Company Act of 1940, as amended (the "1940 Act"), as a diversified,
open-end management investment company and currently consists of six active
separate investment portfolios: Equity Fund, Balanced Fund, Intermediate Bond
Fund, SmallCap Equity Fund, Realty Fund and Mighty Mites(SM) Fund (collectively,
the "Funds"), each with four classes of shares known as the Class AAA Shares,
Class A Shares, Class B Shares and Class C Shares. Each class of shares
outstanding bears the same voting, dividend, liquidation and other rights and
conditions, except that the expenses incurred in the distribution and marketing
of such shares are different for each class.
2. SIGNIFICANT ACCOUNTING POLICIES. The preparation of financial statements in
accordance with U.S. generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of the significant accounting
policies followed by the Funds in the preparation of their financial statements.
SECURITY VALUATION. Portfolio securities listed or traded on a nationally
recognized securities exchange, or traded in the U.S. over-the-counter market
for which market quotations are readily available are valued at the last quoted
sale price or a market's official closing price as of the close of business on
the day the securities are being valued. If there were no sales that day, the
security is valued at the average of the closing bid and asked prices or, if
there were no asked prices quoted on that day, then the security is valued at
the closing bid price on that day. If no bid or asked prices are quoted on such
day, the security is valued at the most recently available price or, if the
Board of Trustees (the "Board") so determines, by such other method as the Board
shall determine in good faith, to reflect its fair market value. Portfolio
securities traded on more than one national securities exchange or market are
valued according to the broadest and most representative market, as determined
by Gabelli Advisers, Inc. (the "Adviser").
Portfolio securities primarily traded on foreign markets are generally valued at
the preceding closing values of such securities on their respective exchanges or
if after the close of the foreign markets, but prior to the close of business on
the day the securities are being valued, market conditions change significantly,
certain foreign securities may be fair valued pursuant to procedures established
by the Board. Debt instruments that are not credit impaired with remaining
maturities of 60 days or less are valued at amortized cost, unless the Board
determines such amount does not reflect the securities' fair value, in which
case these securities will be valued at their fair value as determined by the
Board. Debt instruments having a maturity greater than 60 days for which market
quotations are readily available are valued at the latest average of the bid and
asked prices. If there were no asked prices quoted on such day, the security is
valued using the closing bid price. Futures contracts are valued at the closing
settlement price of the exchange or board of trade on which the applicable
contract is traded.
Securities and assets for which market quotations are not readily available are
valued at their fair value as determined in good faith under procedures
established by and under the general supervision of the Board. Fair valuation
methodologies and procedures may include, but are not limited to: analysis and
review of available financial and non-financial information about the company;
comparisons to the valuation and changes in valuation of similar securities,
including a comparison of foreign securities to the equivalent U.S. dollar value
ADR securities at the close of the U.S. exchange; and evaluation of any other
information that could be indicative of the value of the security.
ACCOUNTING FOR REAL ESTATE INVESTMENT TRUSTS. The Funds own shares of Real
Estate Investment Trusts ("REITS") which report information on the source of
their distributions annually. Distributions received from REITS during the year
which represent a return of capital are recorded as a reduction to the cost of
the individual REIT.
22
THE WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION. The books and records of the Trust are maintained
in United States (U.S.) dollars. Foreign currencies, investments and other
assets and liabilities are translated into U.S. dollars at the exchange rates
prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated at the exchange rate prevailing
on the respective dates of such transactions. Unrealized gains and losses, which
result from changes in foreign exchange rates and/or changes in market prices of
securities, have been included in unrealized appreciation/depreciation on
investments and foreign currency translations. Net realized foreign currency
gains and losses resulting from changes in exchange rates include foreign
currency gains and losses between trade date and settlement date on investment
securities transactions, foreign currency transactions and the difference
between the amounts of interest and dividends recorded on the books of the Trust
and the amounts actually received. The portion of foreign currency gains and
losses related to fluctuation in exchange rates between the initial trade date
and subsequent sale trade date is included in realized gain/(loss) on
investments.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.
DETERMINATION OF NET ASSET VALUE AND CALCULATION OF EXPENSES. Certain
administrative expenses are common to, and allocated among, the Funds and then
among the Classes of Shares. Such allocations are made on the basis of each
Fund's and Class' average net assets or other criteria directly affecting the
expenses as determined by the Adviser pursuant to procedures established by the
Board.
In calculating net asset value per share of each class, investment income,
realized and unrealized gains and losses, redemption fees and expenses other
than class specific expenses are allocated daily to each class of shares based
on the proportion of net assets of each class at the beginning of each day.
Distribution expenses are solely borne by the class incurring the expense.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends from net investment
income are declared and paid annually for the Equity, SmallCap Equity and Mighty
Mites(SM) Funds, and quarterly for the Balanced and Realty Funds. The
Intermediate Bond Fund declares dividends daily and pays those dividends
monthly. Distributions of net realized gain on investments are normally declared
and paid at least annually by each Fund. Dividends and distributions to
shareholders are recorded on the ex-dividend date. Distributions to shareholders
are based on ordinary income and long-term capital gains as determined in
accordance with Federal income tax regulations, which may differ from income and
capital gains as determined under U.S. generally accepted accounting principles.
These differences are primarily due to differing treatments of income and gains
on various investment securities held by the Funds, timing differences and
differing characterizations of distributions made by the Funds.
These book/tax differences are either temporary or permanent in nature. To the
extent these differences are permanent, adjustments are made to the appropriate
equity accounts in the period that the differences arise.
For the year ended September 30, 2004, the following reclassifications were made
to increase (decrease) such accounts with offsetting adjustments to additional
paid-in-capital. These reclassifications related primarily to distributions from
Real Estate Investment Trusts and net operating losses.
ACCUMULATED UNDISTRIBUTED ACCUMULATED REALIZED
NET INVESTMENT INCOME (LOSS) GAIN (LOSS) ON INVESTMENTS
---------------------------- --------------------------
Equity Fund ....................... $ -- $ --
Balanced Fund ..................... 3,920 (3,602)
Intermediate Bond Fund ............ 153 (153)
SmallCap Equity Fund .............. (148,137) --
Realty Fund ....................... 58,950 (58,862)
Mighty Mites(SM) Fund ............. 154,093 (154,093)
23
THE WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
The tax character of distributions paid during the years ended September 30,
2004 and September 30, 2003 was as follows:
EQUITY FUND BALANCED FUND INTERMEDIATE BOND FUND
--------------------------- -------------------------- ------------------------
YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30, YEAR ENDED SEPTEMBER 30,
--------------------------- -------------------------- ------------------------
2004 2003 2004 2003 2004 2003
----------- ------------ ------------ ------------ ---------- -----------
Ordinary income
(inclusive of short-term capital gains) ..... $ 2,644,524 $ 2,621,205 $ 2,813,516 $ 3,340,532 $ 315,825 $ 392,988
Net long term capital gains .................... -- -- -- -- 13,617 --
----------- ------------ ------------ ------------ ---------- -----------
Total distributions paid ....................... $ 2,644,524 $ 2,621,205 $ 2,813,516 $ 3,340,532 $ 329,442 $ 392,988
=========== ============ ============ ============ ========== ===========
SMALLCAP EQUITY FUND REALTY FUND MIGHTY MITES(SM) FUND
--------------------------- -------------------------- ------------------------
Ordinary income
(inclusive of short-term capital gains) ..... -- -- $ 388,106 $ 424,399 $ 322,208 $ 101,542
Net long term capital gains .................... -- -- 58,950 -- 347,646 103,413
----------- ------------ ------------ ------------ ---------- -----------
Total distributions paid ....................... -- -- $ 447,056 $ 424,399 $ 669,854 $ 204,955
=========== ============ ============ ============ ========== ===========
PROVISION FOR INCOME TAXES. The Funds intend to continue to qualify as regulated
investment companies under Subchapter M of the Internal Revenue Code of 1986, as
amended (the "Code"). It is the Funds' policy to comply with the requirements of
the Code applicable to regulated investment companies and to distribute
substantially all of the Funds' net investment company taxable income and net
capital gains. Therefore, no provision for Federal Income taxes is required.
As of September 30, 2004, the components of accumulated earnings/(losses) on a
tax basis were as follows:
INTERMEDIATE SMALLCAP MIGHTY
EQUITY BALANCED BOND EQUITY REALTY MITES(SM)
FUND FUND FUND FUND FUND FUND
----------- ------------ ------------ ------------ ---------- -----------
Undistributed ordinary income .................. $ 936,755 -- $ 2,656 -- -- $ 911,803
Long-term capital gain ......................... -- -- 88,949 -- $ 774,341 2,679,091
Capital loss carryforward ...................... (28,759,173) $ (3,379,553) -- $(11,305,503) -- --
Unrealized appreciation/(depreciation) ......... 27,107,774 16,135,610 220,296 754,971 3,423,757 8,410,565
----------- ------------ ------------ ------------ ---------- -----------
Total accumulated income/(loss) ................ $ (714,644) $ 12,756,057 $ 311,901 $(10,550,532) $4,198,098 $12,001,459
=========== ============ ============ ============ ========== ===========
At September 30, 2004, the difference between book and tax-basis unrealized
appreciation/(depreciation) is attributable primarily to the tax basis deferral
of losses on wash sales. Additionally, Mighty Mites(SM) has a basis adjustment
due to an investment in a publicly traded limited partnership.
The Equity Fund has capital loss carryforwards for Federal income tax purposes
of $5,455,742, $21,893,758 and $1,409,672, available through September 2010,
2011 and 2012, respectively. The Balanced Fund has a capital loss carryforward
for Federal income tax purposes of $3,379,553 available through September 2011.
The SmallCap Equity Fund has capital loss carryforwards for Federal income tax
purposes of $6,460,017 and $4,845,486 available through September 2010 and 2011,
respectively. These loss carryforwards are available to reduce future required
distributions of net capital gains to shareholders.
During the fiscal year ended September 30, 2004 the Balanced Fund, SmallCap
Equity Fund and Realty Fund utilized capital loss carryforwards of $1,600,142,
$2,385,162 and $202,902, respectively.
24
THE WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
Under the current tax law, capital losses related to securities and foreign
currency realized after October 31 and prior to the Fund's fiscal year end may
be deferred as occurring on the first day of the following year. For the fiscal
year ended September 30, 2004 the Funds had no capital losses to defer.
CONCENTRATION RISK. The Realty Fund invests a substantial portion of its assets
in REITS; therefore it may be more affected by economic developments in the real
estate industry than would a general equity fund.
3. INVESTMENT ADVISORY AGREEMENTS. The Funds have entered into an investment
advisory agreement (the "Advisory Agreement") with the Adviser which provides
that the Funds will pay the Adviser a fee, computed daily and paid monthly, at
the annual rate of 1.00% for the Equity, SmallCap Equity, Realty and Mighty
Mites(SM) Funds, 0.75% for the Balanced Fund, and 0.60% for the Intermediate
Bond Fund, of the value of the Fund's average daily net assets. In accordance
with the Advisory Agreement, the Adviser provides a continuous investment
program for the Funds' portfolios, oversees the administration of all aspects of
the Funds' business and affairs and pays the compensation of all Officers and
Trustees of the Funds' who are the Funds' affiliates. The Adviser has
contractually agreed to waive its investment advisory fee and/or reimburse
expenses to the Intermediate Bond, SmallCap Equity, Realty and Mighty Mites(SM)
Funds in the event annual expenses of such Funds exceed certain prescribed
limits. Such fee waiver/reimbursement arrangement will continue until at least
September 30, 2005. For the six months ended March 31, 2005, the Adviser was
entitled to fees of $900,299, $543,824, $31,192, $58,566, $90,760 and $257,271
for the Equity, Balanced, Intermediate Bond, SmallCap Equity, Realty and Mighty
Mites(SM) Funds, respectively. For the six months ended March 31, 2005, the
Adviser waived fees or reimbursed expenses in the amounts of $35,486, $35,496,
$19,145 and $59,284 for the Intermediate Bond, SmallCap Equity, Realty and
Mighty Mites(SM) Funds, respectively.
The Intermediate Bond, SmallCap Equity, Realty and Mighty Mites(SM) Funds are
obliged to repay the Adviser for a period of two fiscal years following the
fiscal year in which the Adviser reimbursed the Fund only to the extent that the
operating expenses of the Fund fall below the applicable expense limitation for
Class AAA of 1.00%, 1.50%, 1.50% and 1.50%, respectively and for Class A of
1.10%, 1.75%, 1.75% and 1.75%, respectively, and for Class B and Class C of
1.75%, 2.25%, 2.25% and 2.25%, respectively of average daily net assets, the
annual limitation under the Advisory Agreement. As of March 31, 2005, the
cumulative unreimbursed amounts which may be recovered by the Adviser within the
next two fiscal years are $191,204, $190,527, $122,467 and $221,719 for the
Intermediate Bond, SmallCap Equity, Realty and Mighty Mites(SM) Funds,
respectively.
The Funds, with the exception of the Mighty Mites(SM) Fund, have also entered
into a sub-advisory agreement with Westwood Management Corp. (the "Sub-Adviser")
whereby the Adviser pays the Sub-Adviser the greater of $150,000 per year on an
aggregate basis for the Funds or a fee of 35% of net revenues to the Adviser
from the Funds. For the six months ended March 31, 2005, the Adviser informed
the Funds that it paid collectively to the Sub-Adviser fees of $409,151 for the
Equity, Balanced, Intermediate Bond, SmallCap Equity and Realty Funds.
4. DISTRIBUTION PLAN. The Funds' Board has adopted a distribution plan (the
"Plan") for each class of shares pursuant to Rule 12b-1 under the 1940 Act.
Gabelli & Company, Inc. ("Gabelli & Company"), an affiliate of the Adviser,
serves as distributor of the Funds. Under the Class AAA, Class A, Class B and
Class C Share Plans, payments are authorized to Gabelli & Company at annual
rates of 0.25%, 0.50% (for the Intermediate Bond Fund at an annual rate of
0.35%), 1.00% and 1.00%, respectively, of the average daily net assets of those
classes, the annual limitations under each Plan. Such payments are accrued daily
and paid monthly.
25
THE WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
5. PORTFOLIO SECURITIES. Purchases and proceeds from the sales of securities for
the six months ended March 31, 2005, other than short-term securities, are as
follows:
PURCHASES SALES PURCHASES SALES
(EXCLUDING U.S. (EXCLUDING U.S. OF U.S. OF U.S.
GOVERNMENT GOVERNMENT GOVERNMENT GOVERNMENT
SECURITIES) SECURITIES) SECURITIES SECURITIES
----------- ----------- ----------- -----------
Equity Fund ............ $68,282,113 $91,281,472 -- --
Balanced Fund .......... 35,396,241 35,137,784 $11,741,266 $6,902,876
Intermediate Bond Fund . 393,321 422,209 2,124,289 1,129,656
SmallCap Equity Fund ... 6,829,686 11,940,721 -- --
Realty Fund ............ 5,210,141 5,011,713 -- --
Mighty Mites(SM) Fund .. 2,168,840 10,064,331 -- --
6. TRANSACTIONS WITH AFFILIATES. During the six months ended March 31, 2005, the
Mighty Mites(SM) Fund paid brokerage commissions of $20,265 to Gabelli &
Company.
Gabelli & Company informed the Trust that it received commissions (sales charges
and underwriting fees) from investors on sales and redemptions of Fund shares in
the amount of $4,669.
The cost of calculating each Fund's net asset value per share is a Fund expense
pursuant to the Investment Advisory Agreement between each Fund and the Adviser.
During the six months ended March 31, 2005, the Equity, Balanced and Mighty
Mites(SM) Funds reimbursed the Adviser $19,950 each in connection with the cost
of computing the Fund's net asset value, which is included in miscellaneous
expenses in the Statement of Operations. A reimbursement was not sought during
the six months ended March 31, 2005 for the Realty Fund, Intermediate Bond Fund
and SmallCap Equity Fund.
SmallCap Equity Fund recorded a reimbursement from the Adviser during August
2004 in the amount of $51,180. This amount was paid in connection with losses
incurred in the disposition of certain exchange traded funds which exceeded the
Fund's investment restrictions.
7. SHARES OF BENEFICIAL INTEREST. The Funds offer four classes of shares --
Class AAA Shares, Class A Shares, Class B Shares, and Class C Shares. Class AAA
Shares are offered only to investors who acquire them directly from Gabelli &
Company or through selected broker/dealers without a sales charge. Class A
Shares are subject to a maximum front-end sales charge of 4.00%. Class B Shares
are subject to a contingent deferred sales charge (CDSC) upon redemption within
six years of purchase. The applicable CDSC is equal to a declining percentage of
the lesser of the net asset value per share at the date of original purchase or
at the date of redemption, based on the length of time held. Class C Shares are
subject to a 1% CDSC for one year after purchase. Class B Shares are available
only through exchange of Class B Shares of other Funds distributed by Gabelli &
Company.
From October 1, 2004 through April 4, 2005, the Funds imposed a redemption fee
of 2.00% on Class AAA, Class A, Class B and Class C Shares that were redeemed or
exchanged within 60 days after the date of a purchase. Effective April 5, 2005,
the redemption fee was eliminated for all Funds except Mighty Mites(SM) Fund
whose redemption fee was retained at 2% applicable to redemptions or exchanges
within 7 days after the date of a purchase. The redemption fee is deducted from
the proceeds otherwise payable to the redeeming shareholders and is retained by
the Funds. The redemption fees retained by the Funds during the six months ended
March 31, 2005 amounted to $(1,246), $6,166, $(78), $(155), $6,511 and $12 for
the Equity, Balanced, Intermediate Bond, SmallCap Equity, Realty and Mighty
Mites(SM) Funds, respectively.
The redemption fee did not apply to shares purchased through programs that the
Adviser determined to have appropriate short-term trading policies in place.
Additionally, certain recordkeepers for qualified and non-qualified retirement
plans that could not collect the redemption fee at the participant level due to
systems limitations have received an extension until June 30, 2005 to implement
such systems.
26
THE WESTWOOD FUNDS
NOTES TO FINANCIAL STATEMENTS (CONTINUED) (UNAUDITED)
- --------------------------------------------------------------------------------
Transactions in shares of beneficial interest were as follows:
EQUITY FUND BALANCED FUND
-------------------------------- ---------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30, MARCH 31,2005 SEPTEMBER 30,
(UNAUDITED) 2004 (UNAUDITED) 2004
---------------- ------------- ---------------- -------------
CLASS AAA
Shares sold ................................... 1,395,096 4,570,931 1,260,764 2,879,300
Shares issued upon reinvestment of dividends .. 163,157 274,221 99,028 224,878
Shares redeemed ............................... (3,867,072) (13,328,863) (1,590,847) (5,716,541)
---------------- ------------- ---------------- -------------
Net increase (decrease) in Class AAA shares (2,308,819) (8,483,711) (231,055) (2,612,363)
================ ============= ================ =============
CLASS A
Shares sold ................................... 14,320 84,074 37,614 31,077
Shares issued upon reinvestment of dividends .. 856 3,690 2,088 6,537
Shares redeemed ............................... (170,806) (96,075) (24,462) (58,193)
---------------- ------------- ---------------- -------------
Net increase (decrease) in Class A shares .. (155,630) (8,311) 15,240 (20,579)
================ ============= ================ =============
CLASS B
Shares sold ................................... -- 828 -- 2,421
Shares issued upon reinvestment of dividends .. -- 46 2 183
Shares redeemed ............................... (166) (6,196) (1,745) (5,950)
---------------- ------------- ---------------- -------------
Net increase (decrease) in Class B shares .. (166) (5,322) (1,743) (3,346)
================ ============= ================ =============
CLASS C
Shares sold ................................... -- 1,131 9,867 85,453
Shares issued upon reinvestment of dividends .. 51 -- 15 552
Shares redeemed ............................... (86) (1,094) (9,188) (55,549)
---------------- ------------- ---------------- -------------
Net increase (decrease) in Class C shares .. (35) 37 694 30,456
================ ============= ================ =============
INTERMEDIATE BOND FUND
--------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2005 SEPTEMBER 30,
(UNAUDITED) 2004
---------------- -------------
CLASS AAA
Shares sold ................................... 93,977 177,231
Shares issued upon reinvestment of dividends .. 17,100 25,093
Shares redeemed ............................... (50,596) (424,556)
---------------- -------------
Net increase (decrease) in Class AAA shares 60,481 (222,232)
================ =============
CLASS A
Shares sold ................................... 130 251
Shares issued upon reinvestment of dividends .. 137 251
Shares redeemed ............................... (1,174) (5,990)
---------------- -------------
Net increase (decrease) in Class A shares .. (907) (5,488)
================ =============
CLASS B
Shares sold ................................... 105 7,103
Shares issued upon reinvestment of dividends .. 320 408
Shares redeemed ............................... (1,944) (11,118)
---------------- -------------
Net increase (decrease) in Class B shares .. (1,519) (3,607)
================ =============
CLASS C
Shares sold ................................... -- --
Shares issued upon reinvestment of dividends .. -- 73
Shares redeemed ............................... -- (4,146)
---------------- -------------
Net increase (decrease) in Class C shares .. -- (4,073)
================ =============
SMALLCAP EQUITY FUND REALTY FUND
-------------------------------- ---------------------------------
CLASS AAA
Shares sold ................................... 102,730 1,764,700 179,192 526,666
Shares issued upon reinvestment of dividends .. -- -- 67,301 31,120
Shares redeemed ............................... (623,845) (2,354,722) (197,743) (564,612)
---------------- ------------- ---------------- -------------
Net increase (decrease) in Class AAA shares (521,115) (590,022) 48,750 (6,826)
================ ============= ================ =============
CLASS A
Shares sold ................................... -- 1,799 3,009 2,331
Shares issued upon reinvestment of dividends .. -- -- 179 45
Shares redeemed ............................... (3,744) -- (206) (2,910)
---------------- ------------- ---------------- -------------
Net increase (decrease) in Class A shares .. (3,744) 1,799 2,982 (534)
================ ============= ================ =============
CLASS B
Shares sold ................................... -- 41 -- --
Shares issued upon reinvestment of dividends .. -- -- 5 3
Shares redeemed ............................... (337) (5,827) -- --
---------------- ------------- ---------------- -------------
Net increase (decrease) in Class B shares .. (337) (5,786) 5 3
================ ============= ================ =============
CLASS C
Shares sold ................................... -- -- 203 --
Shares issued upon reinvestment of dividends .. -- -- 26 8
Shares redeemed ............................... (1,100) (12,543) -- --
---------------- ------------- ---------------- -------------
Net increase (decrease) in Class C shares ..... (1,100) (12,543) 229 8
================ ============= ================ =============
MIGHTY MITES(SM) FUND
--------------------------------
CLASS AAA
Shares sold ................................... 47,426 3,529,295
Shares issued upon reinvestment of dividends .. 247,063 41,006
Shares redeemed ............................... (573,004) (4,006,222)
---------------- -------------
Net increase (decrease) in Class AAA shares (278,515) (435,921)
================ =============
CLASS A
Shares sold ................................... 37 114
Shares issued upon reinvestment of dividends .. 219 28
Shares redeemed ............................... -- --
---------------- -------------
Net increase (decrease) in Class A shares .. 256 142
================ =============
CLASS B
Shares sold ................................... -- 718
Shares issued upon reinvestment of dividends .. 2,143 430
Shares redeemed ............................... (2,126) (12,996)
---------------- -------------
Net increase (decrease) in Class B shares .. 17 (11,848)
================ =============
CLASS C
Shares sold ................................... 40 14,145
Shares issued upon reinvestment of dividends .. 1,810 122
Shares redeemed ............................... (1) (849)
---------------- -------------
Net increase (decrease) in Class C shares ..... 1,849 13,418
================ =============
8. OTHER MATTERS. The Adviser and/or affiliates have received subpoenas from the
Attorney General of the State of New York and the SEC requesting information on
mutual fund shares trading practices. Gabelli Asset Management Inc., the
Adviser's parent company, is responding to these requests. The Funds do not
believe that these matters will have a material adverse effect on the Funds'
financial position or the results of their operations.
9. INDEMNIFICATIONS. The Funds enter into contracts that contain a variety of
indemnifications. The Funds' maximum exposure under these arrangements is
unknown. However, the Funds have not had prior claims or losses pursuant to
these contracts and expect the risk of loss to be remote.
27
THE WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
---------------------------------------- ----------------------------------------
NET
REALIZED
NET ASSET NET AND TOTAL NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED
PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL
SEPTEMBER 30 OF PERIOD (LOSS)(c) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS
- ---------------------- --------- ---------- --------------- ---------- ---------- ----------- -------------
EQUITY FUND
CLASS AAA
2005(a) $ 9.32 $ 0.06 $ 0.92 $ 0.98 $ (0.10) -- $ (0.10)
2004 7.99 0.08 1.36 1.44 (0.11) -- (0.11)
2003 7.02 0.09 0.96 1.05 (0.08) -- (0.08)
2002 8.32 0.07 (1.32) (1.25) (0.05) -- (0.05)
2001 11.12 0.04 (1.52) (1.48) (0.01) $ (1.31) (1.32)
2000 10.46 (0.00)(d) 1.86 1.86 (0.02) (1.18) (1.20)
CLASS A
2005(a) $ 9.28 $ 0.06 $ 0.89 $ 0.95 $ (0.04) -- $ (0.04)
2004 7.97 0.05 1.35 1.40 (0.09) -- (0.09)
2003 6.99 0.07 0.97 1.04 (0.06) -- (0.06)
2002 8.29 0.05 (1.32) (1.27) (0.03) -- (0.03)
2001 11.10 0.02 (1.52) (1.50) -- $ (1.31) (1.31)
2000 10.46 (0.03) 1.85 1.82 -- (1.18) (1.18)
CLASS B
2005(a) $ 9.21 $ 0.02 $ 0.90 $ 0.92 -- -- --
2004 7.92 0.02 1.34 1.36 $ (0.07) -- $ (0.07)
2003 6.97 0.04 0.95 0.99 (0.04) -- (0.04)
2002 8.29 0.02 (1.32) (1.30) (0.02) -- (0.02)
2001(e) 9.65 (0.01) (1.35) (1.36) -- -- --
CLASS C
2005(a) $ 9.24 $ 0.02 $ 0.90 $ 0.92 $ (0.03) -- $ (0.03)
2004 7.89 0.01 1.34 1.35 -- -- --
2003 6.98 0.04 0.96 1.00 (0.09) -- (0.09)
2002 8.28 0.01 (1.31) (1.30) -- -- --
2001(f) 10.25 (0.01) (1.96) (1.97) -- -- --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
--------------------------------------------------------------------
NET NET ASSETS,
ASSET VALUE, END OF NET EXPENSES PORTFOLIO
PERIOD ENDED REDEMPTION END OF TOTAL PERIOD INVESTMENT NET OF TURNOVER
SEPTEMBER 30 FEES(c) PERIOD RETURN+ (IN 000'S) INCOME (LOSS) WAIVERS(b) RATE
- ---------------------- ---------- ------------ ------- ----------- ------------- ---------- ---------
EQUITY FUND
CLASS AAA
2005(a) $ (0.00)(d) $ 10.20 10.5% $ 172,617 1.21%(g) 1.50%(g) 38%
2004 0.00(d) 9.32 18.1 179,407 0.90 1.50 44
2003 -- 7.99 15.1 221,635 1.19 1.48 50
2002 -- 7.02 (15.1) 231,197 0.84 1.46 84
2001 -- 8.32 (14.9) 265,855 0.45 1.43 87
2000 -- 11.12 19.3 204,094 (0.00) 1.48 91
CLASS A
2005(a) $ (0.00)(d) $ 10.19 10.3% $ 2,067 1.18%(g) 1.75%(g) 38%
2004 0.00(d) 9.28 17.7 3,328 0.61 1.75 44
2003 -- 7.97 15.0 2,923 0.94 1.73 50
2002 -- 6.99 (15.4) 1,808 0.59 1.71 84
2001 -- 8.29 (15.1) 2,096 0.20 1.68 87
2000 -- 11.10 19.0 2,133 (0.25) 1.73 91
CLASS B
2005(a) $ (0.00)(d) $ 10.13 10.0% $ 40 0.45%(g) 2.26%(g) 38%
2004 0.00(d) 9.21 17.2 38 0.21 2.25 44
2003 -- 7.92 14.3 74 0.44 2.23 50
2002 -- 6.97 (15.7) 53 0.09 2.21 84
2001(e) -- 8.29 (14.1) 27 (0.30)(g) 2.18(g) 87
CLASS C
2005(a) $ (0.00)(d) $ 10.13 10.0% $ 166 0.44%(g) 2.25%(g) 38%
2004 0.00(d) 9.24 17.1 152 0.11 2.25 44
2003 -- 7.89 14.4 129 0.44 2.23 50
2002 -- 6.98 (15.7) 33 0.09 2.21 84
2001(f) -- 8.28 (19.2) 4 (0.30)(g) 2.18(g) 87
- --------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends. Total return for the period of
less than one year is not annualized.
(a) For the period ended March 31, 2005, unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee
credits on cash balances maintained with the custodian. Including such
custodian fee credits, the expense ratios would be 1.50% (Class AAA),
1.75% (Class A), and 2.25% (Class B and C) for the period ended March 31,
2005; 1.49% (Class AAA), 1.74% (Class A) and 2.24% (Class B and C) for the
period ended September 30, 2004; 1.47% (Class AAA), 1.72% (Class A) and
2.22% (Class B and Class C) for 2003; 1.43% (Class AAA), 1.68% (Class A)
and 2.18% (Class B and Class C) for 2002; 1.42% (Class AAA), 1.67% (Class
A) and 2.17% (Class B and Class C) for 2001; and 1.47% (Class AAA) and
1.72% (Class A) for 2000.
(c) Per share data is calculated using the average shares outstanding method.
(d) Amount represents less than $0.005 per share.
(e) From March 27, 2001 through September 30, 2001, the period through which
Class B Shares were continuously outstanding.
(f) From February 13, 2001 through September 30, 2001, the period through
which Class C Shares were continuously outstanding.
(g) Annualized.
See accompanying notes to financial statements.
28
THE WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
---------------------------------------- ----------------------------------------------
NET
REALIZED
NET ASSET AND TOTAL NET
VALUE, NET UNREALIZED GAIN FROM NET REALIZED
PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL
SEPTEMBER 30 OF PERIOD INCOME(c) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS
- ---------------------- --------- ---------- --------------- ---------- ---------- ----------- -------------
BALANCED FUND
CLASS AAA
2005(a) $ 11.47 $ 0.11 $ 0.63 $ 0.74 $ (0.11) -- $ (0.11)
2004 10.51 0.21 0.97 1.18 (0.22) -- (0.22)
2003 9.65 0.21 0.87 1.08 (0.22) -- (0.22)
2002 10.40 0.24 (0.75) (0.51) (0.24) $ (0.00)(d) (0.24)
2001 12.40 0.26 (0.90) (0.64) (0.26) (1.10) (1.36)
2000 11.98 0.27 1.23 1.50 (0.27) (0.81) (1.08)
CLASS A
2005(a) $ 11.44 $ 0.10 $ 0.62 $ 0.72 $ (0.07) -- $ (0.07)
2004 10.48 0.18 0.97 1.15 (0.19) -- (0.19)
2003 9.62 0.19 0.86 1.05 (0.19) -- (0.19)
2002 10.37 0.21 (0.75) (0.54) (0.21) $ (0.00)(d) (0.21)
2001 12.36 0.23 (0.89) (0.66) (0.23) (1.10) (1.33)
2000 11.95 0.24 1.22 1.46 (0.24) (0.81) (1.05)
CLASS B
2005(a) $ 11.43 $ 0.07 $ 0.62 $ 0.69 $ (0.00)(d) -- $ (0.00)(d)
2004 10.48 0.13 0.96 1.09 (0.14) -- (0.14)
2003 9.63 0.14 0.86 1.00 (0.15) -- (0.15)
2002 10.40 0.17 (0.77) (0.60) (0.17) $ (0.00)(d) (0.17)
2001(e) 11.35 0.08 (0.95) (0.87) (0.08) -- (0.08)
CLASS C
2005(a) $ 11.45 $ 0.07 $ 0.61 $ 0.68 $ (0.00)(d) -- $ (0.00)(d)
2004 10.49 0.13 0.97 1.10 (0.14) -- (0.14)
2003 9.62 0.14 0.87 1.01 (0.14) -- (0.14)
2002 10.40 0.19 (0.79) (0.60) (0.18) $ (0.00)(d) (0.18)
2001(f) 10.17 0.00(d) 0.23 0.23 -- -- --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
---------------------------------------------------------------------
NET NET ASSETS,
ASSET VALUE, END OF NET EXPENSES PORTFOLIO
PERIOD ENDED REDEMPTION END OF TOTAL PERIOD INVESTMENT NET OF TURNOVER
SEPTEMBER 30 FEES(c) PERIOD RETURN+ (IN 000'S) INCOME (LOSS) WAIVERS(b) RATE
- ---------------------- ---------- ------------ ------- ----------- ------------- ---------- ----------
BALANCED FUND
CLASS AAA
2005(a) $ 0.00(d) $ 12.10 6.5% $ 141,029 1.92%(g) 1.25%(g) 32%
2004 0.00(d) 11.47 11.3 136,400 1.92 1.23 41
2003 -- 10.51 11.2 152,409 2.10 1.23 56
2002 -- 9.65 (5.1) 150,915 2.25 1.22 78
2001 -- 10.40 (5.8) 154,179 2.23 1.17 81
2000 -- 12.40 13.4 139,350 2.21 1.19 65
CLASS A
2005(a) $ 0.00(d) $ 12.09 6.3% $ 5,784 1.67%(g) 1.50%(g) 32%
2004 0.00(d) 11.44 11.0 5,298 1.66 1.48 41
2003 -- 10.48 11.0 5,070 1.85 1.48 56
2002 -- 9.62 (5.4) 5,761 2.00 1.47 78
2001 -- 10.37 (6.0) 6,472 1.98 1.42 81
2000 -- 12.36 13.1 7,720 1.96 1.44 65
CLASS B
2005(a) $ 0.00(d) $ 12.12 6.1% $ 151 1.16%(g) 2.00%(g) 32%
2004 0.00(d) 11.43 10.4 163 1.18 1.98 41
2003 -- 10.48 10.4 184 1.35 1.98 56
2002 -- 9.63 (5.9) 113 1.50 1.97 78
2001(e) -- 10.40 (7.7) 2 1.48(g) 1.92(g) 81
CLASS C
2005(a) $ 0.00(d) $ 12.13 6.0% $ 905 1.17%(g) 2.00%(g) 32%
2004 0.00(d) 11.45 10.5 846 1.19 1.98 41
2003 -- 10.49 10.5 456 1.35 1.98 56
2002 -- 9.62 (5.9) 284 1.50 1.97 78
2001(f) -- 10.40 2.3 7 1.48(g) 1.92(g) 81
- --------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends. Total return for the period of
less than one year is not annualized.
(a) For the period ended March 31, 2005, unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee
credits on cash balances maintained with the custodian. Including such
custodian fee credits, the expense ratios would be 1.23% (Class AAA),
1.48% (Class A) and 1.98% (Class B and C) for the period ended March 31,
2005; 1.22% (Class AAA), 1.47% (Class A) and 1.97% (Class B and Class C)
for the period ended September 30, 2004; 1.20% (Class AAA), 1.45% (Class
A) and 1.95% (Class B and Class C) for 2003; 1.17% (Class AAA), 1.42%
(Class A) and 1.92% (Class B and Class C) for 2002; 1.15% (Class AAA),
1.40% (Class A) and 1.90% (Class B and Class C) for 2001; and 1.17% (Class
AAA) and 1.42% (Class A) for 2000.
(c) Per share data is calculated using the average shares outstanding method.
(d) Amount represents less than $.005 per share.
(e) From March 27, 2001 through September 30, 2001, the period through which
Class B Shares were continuously outstanding.
(f) From September 25, 2001 through September 30, 2001, the period through
which Class C Shares were continuously outstanding.
(g) Annualized.
See accompanying notes to financial statements.
29
THE WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
----------------------------------------- ----------------------------------------
NET
REALIZED
NET ASSET NET AND TOTAL NET
VALUE, INVESTMENT UNREALIZED GAIN FROM NET REALIZED
PERIOD ENDED BEGINNING INCOME (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL
SEPTEMBER 30 OF PERIOD (LOSS)(d) INVESTMENTS OPERATIONS INCOME INVESTMENTS DISTRIBUTIONS
- ---------------------- --------- ---------- --------------- ---------- ---------- ----------- -------------
INTERMEDIATE BOND FUND
CLASS AAA
2005(a) $ 11.18 $ 0.17 $ (0.19) $ (0.02) $ (0.17) $ (0.09) $ (0.26)
2004 11.31 0.33 (0.12) 0.21 (0.33) (0.01) (0.34)
2003 11.30 0.31 -- 0.31 (0.30) -- (0.30)
2002 10.82 0.45 0.48 0.93 (0.45) -- (0.45)
2001 10.08 0.51 0.74 1.25 (0.51) -- (0.51)
2000 9.99 0.51 0.09 0.60 (0.51) -- (0.51)
CLASS A
2005(a) $ 11.18 $ 0.16 $ (0.19) $ (0.03) $ (0.16) $ (0.09) $ (0.25)
2004 11.31 0.32 (0.12) 0.20 (0.32) (0.01) (0.33)
2003 11.30 0.30 0.01 0.31 (0.30) -- (0.30)
2002 10.82 0.44 0.48 0.92 (0.44) -- (0.44)
2001(f) 10.55 0.09 0.27 0.36 (0.09) -- (0.09)
CLASS B
2005(a) $ 11.18 $ 0.12 $ (0.19) $ (0.07) $ (0.12) $ (0.09) $ (0.21)
2004 11.30 0.25 (0.11) 0.14 (0.25) (0.01) (0.26)
2003 11.29 0.23 -- 0.23 (0.22) -- (0.22)
2002 10.82 0.37 0.47 0.84 (0.37) -- (0.37)
2001(e) 10.53 0.22 0.29 0.51 (0.22) -- (0.22)
CLASS C(h)
2005(a) $ 11.17 $ 0.13 $ (0.18) $ (0.05) $ (0.22) $ (0.09) $ (0.31)
2004 11.30 0.25 (0.09) 0.16 (0.28) (0.01) (0.29)
2003 11.29 0.22 0.01 0.23 (0.22) -- (0.22)
2002(i) 10.84 0.35 0.45 0.80 (0.35) -- (0.35)
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------
NET NET EXPENSES EXPENSES
ASSET ASSETS, NET NET OF BEFORE
VALUE, END OF INVESTMENT WAIVERS/ WAIVERS/ PORTFOLIO
PERIOD ENDED REDEMPTION END OF TOTAL PERIOD INCOME REIMBURSE- REIMBURSE- TURNOVER
SEPTEMBER 30 FEES(d) PERIOD RETURN+ (IN 000'S) (LOSS) MENTS(b) MENTS(c) RATE
- ---------------------- ---------- ------- ------- ---------- ---------- ---------- ---------- ---------
INTERMEDIATE BOND FUND
CLASS AAA
2005(a) $ (0.00)(j) $ 10.90 (0.2)% $ 9,974 3.00%(g) 1.04%(g) 1.72%(g) 18%
2004 0.00(j) 11.18 2.0 9,553 2.97 1.02 1.76 32
2003 -- 11.31 2.8 12,174 2.70 1.06 1.57 73
2002 -- 11.30 8.9 15,157 4.06 1.05 1.69 46
2001 -- 10.82 12.7 8,140 4.90 1.07 2.02 77
2000 -- 10.08 6.4 6,451 5.16 1.06 1.94 67
CLASS A
2005(a) $ (0.00)(j) $ 10.90 (0.2)% $ 63 2.89%(g) 1.14%(g) 1.82%(g) 18%
2004 0.00(j) 11.18 1.8 75 2.88 1.12 1.86 32
2003 -- 11.31 2.8 138 2.60 1.16 1.67 73
2002 -- 11.30 8.8 56 3.96 1.15 1.79 46
2001(f) -- 10.82 3.4 93 4.80(g) 1.17(g) 2.12(g) 77
CLASS B
2005(a) $ (0.00)(j) $ 10.90 (0.6)% $ 428 2.25%(g) 1.79%(g) 2.47%(g) 18%
2004 0.00(j) 11.18 1.3 456 2.23 1.77 2.51 32
2003 -- 11.30 2.1 502 1.95 1.81 2.32 73
2002 -- 11.29 8.0 229 3.31 1.80 2.44 46
2001(e) -- 10.82 4.9 23 4.15(g) 1.82(g) 2.77(g) 77
CLASS C(h)
2005(a) $ (0.00)(j) $ 10.81 (0.5)% $ 0.1 2.36%(g) 1.79%(g) 2.36%(g) 18%
2004 0.00(j) 11.17 1.5 0 2.21 1.77 2.51 32
2003 -- 11.30 2.1 46 1.95 1.81 2.32 73
2002(i) -- 11.29 7.6 50 3.31(g) 1.80(g) 2.44(g) 46
- --------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends. Total return for the period of
less than one year is not annualized.
(a) For the period ended March 31, 2005, unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee
credits on cash balances maintained with the custodian. Including such
custodian fee credits, the expense ratios for the Intermediate Bond Fund
Class AAA, Intermediate Bond Fund Class A, Intermediate Bond Fund Class B,
and Intermediate Bond Fund Class C, would be 1.00%, 1.10%, 1.75% and
1.75%, respectively, for each period.
(c) During the period, certain fees were voluntarily reduced and/or
reimbursed. If such fee reductions and/or reimbursements had not occurred,
the ratio would have been as shown.
(d) Per share data is calculated using the average shares outstanding method.
(e) From March 27, 2001 through September 30, 2001, the period through which
Class B Shares were continuously outstanding.
(f) From July 26, 2001 through September 30, 2001, the period through which
Class A Shares were continuously outstanding.
(g) Annualized.
(h) Class C Shares were outstanding for the periods December 15, 2000 through
December 18, 2000, March 21, 2001 through March 26, 2001 and July 18, 2001
through July 24, 2001. Financial Highlights are not presented for Class C
Shares for these periods as the information is not considered meaningful.
(i) From October 22, 2001 through September 30, 2002, the period through which
Class C Shares were continuously outstanding.
(j) Amount represents less than $0.005 per share.
See accompanying notes to financial statements.
30
THE WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
--------------------------------------- -----------------------------------------------------
NET NET
ASSET REALIZED
VALUE, AND IN EXCESS
BEGIN- NET UNREALIZED TOTAL NET NET OF NET
NING INVESTMENT GAIN FROM INVEST- REALIZED REALIZED
PERIOD ENDED OF INCOME (LOSS) ON INVESTMENT MENT GAIN ON GAIN ON TOTAL
SEPTEMBER 30 PERIOD (LOSS)(d) INVESTMENTS OPERATIONS INCOME INVESTMENTS INVESTMENTS DISTRIBUTIONS
- ---------------------- ------- ---------- ----------- ---------- ------- ----------- ----------- -------------
SMALLCAP EQUITY FUND
CLASS AAA
2005(a) $ 9.08 $ (0.00)(j) $ 1.14 $ 1.14 -- -- -- --
2004 8.18 (0.10) 1.00 0.90 -- -- -- --
2003 7.49 (0.08) 0.77 0.69 -- -- -- --
2002 8.86 (0.09) (1.28) (1.37) -- -- -- --
2001 22.10 (0.16) (8.12) (8.28) -- $ (4.53) $ (0.43)(f) $ (4.96)
2000 17.77 (0.27) 5.39 5.12 -- (0.79) -- (0.79)
CLASS A
2005(a) $ 9.07 $ (0.01) $ 1.13 $ 1.12 -- -- -- --
2004 8.18 (0.12) 1.01 0.89 -- -- -- --
2003 7.51 (0.10) 0.77 0.67 -- -- -- --
2002(h) 9.91 (0.09) (2.31) (2.40) -- -- -- --
CLASS B
2005(a) $ 8.86 $ (0.04) $ 1.11 $ 1.07 -- -- -- --
2004 8.03 (0.17) 1.00 0.83 -- -- -- --
2003 7.41 (0.13) 0.75 0.62 -- -- -- --
2002 8.83 (0.16) (1.26) (1.42) -- -- -- --
2001(e) 10.41 (0.10) (1.48) (1.58) -- -- -- --
CLASS C
2005(a) $ 8.99 $ (0.06) $ 1.09 $ 1.03 -- -- -- --
2004 8.15 (0.17) 1.01 0.84 -- -- -- --
2003 7.47 (0.10) 0.78 0.68 -- -- -- --
2002(h) 9.91 (0.11) (2.33) (2.44) -- -- -- --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
----------------------------------------------------------------------------------
NET NET EXPENSES EXPENSES
ASSET ASSETS, NET NET OF BEFORE
REDEMP- VALUE, END OF INVESTMENT WAIVERS/ WAIVERS/ PORTFOLIO
PERIOD ENDED TION END OF TOTAL PERIOD INCOME REIMBURSE- REIMBURSE- TURNOVER
SEPTEMBER 30 FEES(d) PERIOD RETURN+ (IN 000'S) (LOSS) MENTS(b) MENTS(c) RATE
- ---------------------- ------- ------- ------- ---------- ---------- ---------- ---------- ---------
SMALLCAP EQUITY FUND
CLASS AAA
2005(a) $ (0.00)(j) $ 10.22 12.6% $ 8,289 (0.05)%(g) 1.51%(g) 2.12%(g) 60%
2004 0.00(j) 9.08 11.0(i) 12,106 (1.11) 1.51 2.12 260
2003 -- 8.18 9.2 15,721 (1.03) 1.53 1.99 329
2002 -- 7.49 (15.5) 16,212 (0.98) 1.56 1.76 202
2001 -- 8.86 (43.2) 21,768 (1.27) 1.59 1.74 184
2000 -- 22.10 29.4 34,911 (1.39) 1.58 1.63 218
CLASS A
2005(a) $ (0.00)(j) $ 10.19 12.4% $ 119 (0.28)%(g) 1.77%(g) 2.40%(g) 60%
2004 0.00(j) 9.07 10.9(i) 140 (1.31) 1.76 2.37 260
2003 -- 8.18 8.9 112 (1.28) 1.78 2.24 329
2002(h) -- 7.51 (24.2) 71 (1.23)(g) 1.80(g) 2.01(g) 202
CLASS B
2005(a) $ (0.00)(j) $ 9.93 12.1% $ 19 (0.79)%(g) 2.26%(g) 2.89%(g) 60%
2004 0.00(j) 8.86 10.3(i) 20 (1.93) 2.26 2.87 260
2003 -- 8.03 8.4 65 (1.78) 2.28 2.74 329
2002 -- 7.41 (16.1) 31 (1.73) 2.30 2.51 202
2001(e) -- 8.83 (15.2) 31 (2.02)(g) 2.34(g) 2.49(g) 184
CLASS C
2005(a) $ (0.00)(j) $ 10.02 11.5% $ 0.1 (1.32)%(g) 2.25%(g) 2.80%(g) 60%
2004 0.00(j) 8.99 10.3(i) 10 (1.98) 2.26 2.87 260
2003 -- 8.15 9.1 111 (1.78) 2.28 2.74 329
2002(h) -- 7.47 (24.6) 0.1 (1.73)(g) 2.30(g) 2.51(g) 202
- --------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends. Total return for the period of
less than one year is not annualized.
(a) For the period ended March 31, 2005, unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee
credits on cash balances maintained with the custodian. Including such
custodian fee credits, the expense ratios for the SmallCap Equity Fund
Class AAA, SmallCap Equity Fund Class A, SmallCap Equity Fund Class B, and
SmallCap Equity Fund Class C would be 1.50%, 1.75%, 2.25% and 2.25%,
respectively, for each period.
(c) During the period, certain fees were voluntarily reduced and/or
reimbursed. If such fee reductions and/or reimbursements had not occurred,
the ratio would have been as shown.
(d) Per share data is calculated using the average shares outstanding method.
(e) From March 27, 2001 through September 30, 2001, the period through which
Class B Shares were continuously outstanding.
(f) Return of Capital.
(g) Annualized.
(h) From November 26, 2001 through September 30, 2002, the period through
which Class A Shares and Class C Shares were continuously outstanding.
(i) Total return excluding the effect of the reimbursement from the Fund's
Adviser of $51,180 for the year ended September 30, 2004 was 10.6%, 10.5%,
10.0% and 9.9% for Class AAA, Class A, Class B and Class C, respectively.
The Adviser fully reimbursed the Fund for a loss on a transaction
exceeding the Fund's investment restrictions, which otherwise would have
reduced total return by 0.4%, 0.4%, 0.3% and 0.4% for Class AAA, Class A,
Class B and Class C, respectively.
(j) Amount represents less than $.005 per share.
See accompanying notes to financial statements.
31
THE WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
--------------------------------------- ----------------------------------------
NET
REALIZED AND
NET ASSET UNREALIZED TOTAL NET
VALUE, NET GAIN FROM NET REALIZED
PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION
SEPTEMBER 30 OF PERIOD INCOME(e) INVESTMENTS OPERATIONS INCOME INVESTMENT DISTRIBUTION FEES(e)
- ------------ ---------- ---------- ------------ ---------- ---------- ---------- ------------ ----------
REALTY FUND
CLASS AAA
2005(a) $ 14.12 $ 0.30 $ 0.79 $ 1.09 $ (0.15) $ (0.73) $ (0.88) $ 0.00(h)
2004 11.87 0.33 2.30 2.63 (0.33) (0.05) (0.38) 0.00(h)
2003 10.03 0.38 1.85 2.23 (0.39) -- (0.39) --
2002 9.76 0.43 0.31 0.74 (0.47) -- (0.47) --
2001 9.10 0.40 0.62 1.02 (0.36) -- (0.36) --
2000 7.61 0.38 1.46 1.84 (0.35) -- (0.35) --
CLASS A
2005(a) $ 14.33 $ 0.29 $ 0.80 $ 1.09 $ (0.16) $ (0.73) $ (0.89) $ 0.00(h)
2004 12.00 0.51 2.12 2.63 (0.26) (0.04) (0.30) 0.00(h)
2003 10.04 0.38 1.85 2.23 (0.27) -- (0.27) --
2002 9.76 0.41 0.30 0.71 (0.43) -- (0.43) --
2001(f) 9.24 0.02 0.70 0.72 (0.20) -- (0.20) --
CLASS B
2005(a) $ 14.33 $ 0.26 $ 0.78 $ 1.04 $ (0.02) $ (0.73) $ (0.75) $ 0.00(h)
2004 12.04 0.25 2.35 2.60 (0.27) (0.04) (0.31) 0.00(h)
2003 10.07 0.27 1.91 2.18 (0.21) -- (0.21) --
2002(g) 9.90 0.36 0.22 0.58 (0.41) -- (0.41) --
CLASS C
2005(a) $ 14.66 $ 0.26 $ 0.81 $ 1.07 $ (0.03) $ (0.73) $ (0.76) $ 0.00(h)
2004 12.32 0.24 2.41 2.65 (0.27) (0.04) (0.31) 0.00(h)
2003 10.26 0.32 1.99 2.31 (0.25) -- (0.25) --
2002(g) 9.90 0.09 0.49 0.58 (0.22) -- (0.22) --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-------------------------------------------------------------------------------------
NET NET EXPENSES EXPENSES
ASSET ASSETS, NET NET OF BEFORE
VALUE, END OF INVESTMENT WAIVERS/ WAIVERS/ PORTFOLIO
PERIOD ENDED END OF TOTAL PERIOD INCOME REIMBURSE- REIMBURSE- TURNOVER
SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) (LOSS) MENTS(b) MENTS(c) RATE
- ------------ ---------- ----------- ------------ ----------- ---------- ---------- -----------
REALTY FUND
CLASS AAA
2005(a) $ 14.33 7.5% $ 17,407 4.08%(d) 1.65%(d) 1.86%(d) 30%
2004 14.12 22.5 16,472 2.51 1.54 1.85 28
2003 11.87 22.8 13,923 3.70 1.56 2.05 33
2002 10.03 7.5 9,122 4.42 1.59 2.61 47
2001 9.76 11.4 3,526 4.27 1.64 4.51 64
2000 9.10 24.9 2,845 4.52 1.73 4.14 74
CLASS A
2005(a) $ 14.53 7.3% $ 48 3.85%(d) 1.91%(d) 2.10%(d) 30%
2004 14.33 22.2 5 3.96 1.79 2.10 28
2003 12.00 22.6 10 3.45 1.81 2.30 33
2002 10.04 7.2 3 4.17 1.84 2.86 47
2001(f) 9.76 7.8 3 4.02(d) 1.90(d) 4.77(d) 64
CLASS B
2005(a) $ 14.62 7.1% $ 2 3.44%(d) 2.40%(d) 2.61%(d) 30%
2004 14.33 21.8 2 1.86 2.29 2.60 28
2003 12.04 22.0 2 2.95 2.31 2.80 33
2002(g) 10.07 5.8 10 3.67(d) 2.34(d) 3.36(d) 47
CLASS C
2005(a) $ 14.97 7.1% $ 9 3.39%(d) 2.39%(d) 2.60%(d) 30%
2004 14.66 21.7 5 1.79 2.29 2.60 28
2003 12.32 22.8 4 2.95 2.31 2.80 33
2002(g) 10.26 5.8 0.1 3.67(d) 2.34(d) 3.36(d) 47
- --------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends. Total return for the period of
less than one year is not annualized.
(a) For the period ended March 31, 2005, unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee
credits on cash balances maintained with the custodian. Including such
custodian fee credits, the expense ratios for the Realty Fund Class AAA,
Realty Fund Class A, Realty Fund Class B and Realty Fund Class C would be
1.50%, 1.75%, 2.25% and 2.25%, respectively, for each period.
(c) During the period, certain fees were voluntarily reduced and/or
reimbursed. If such fee reductions and/or reimbursements had not occurred,
the ratio would have been as shown.
(d) Annualized.
(e) Per share data is calculated using the average shares outstanding method.
(f) From May 9, 2001 through September 30, 2001, the period through which
Class A Shares were continuously outstanding.
(g) From November 26, 2001 through September 30, 2002, the period through
which Class B and C Shares were continuously outstanding.
(h) Amount represents less than $.005 per share.
See accompanying notes to financial statements.
32
THE WESTWOOD FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout each
period:
OPERATING PERFORMANCE DISTRIBUTIONS TO SHAREHOLDERS
--------------------------------------- ----------------------------------------
NET
REALIZED AND
NET ASSET UNREALIZED TOTAL NET
VALUE, NET GAIN FROM NET REALIZED
PERIOD ENDED BEGINNING INVESTMENT (LOSS) ON INVESTMENT INVESTMENT GAIN ON TOTAL REDEMPTION
SEPTEMBER 30 OF PERIOD INCOME(g) INVESTMENTS OPERATIONS INCOME INVESTMENT DISTRIBUTION FEES(g)
- ------------ ---------- ---------- ------------ ---------- ---------- ---------- ------------ ----------
MIGHTY MITES(SM) FUND
CLASS AAA
2005(a) $ 15.07 $ 0.00(f) $ 1.84 $ 1.84 -- $ (1.29) $ (1.29) $ 0.00(f)
2004 13.42 (0.03) 1.84 1.81 -- (0.16) (0.16) 0.00(f)
2003 11.29 (0.03) 2.25 2.22 $ (0.04) (0.05) (0.09) --
2002 10.99 0.03 0.37 0.40 (0.10) -- (0.10) --
2001 14.00 0.12 (0.59) (0.47) (0.08) (2.46) (2.54) --
2000 12.91 0.05 2.76 2.81 (0.10) (1.62) (1.72) --
CLASS A
2005(a) $ 15.08 $ (0.02) $ 1.84 $ 1.82 -- $ (1.29) $ (1.29) $ 0.00(f)
2004 13.46 (0.06) 1.84 1.78 -- (0.16) (0.16) 0.00(f)
2003 11.36 (0.05) 2.26 2.21 $ (0.06) (0.05) (0.11) --
2002(j) 10.97 (0.01) 0.40 0.39 -- -- -- --
2001 14.00 0.09 (0.59) (0.50) (0.07) (2.46) (2.53) --
2000(e) 13.48 0.00(f) 0.52 0.52 -- -- -- --
CLASS B
2005(a) $ 14.82 $ (0.05) $ 1.80 $ 1.75 -- $ (1.29) $ (1.29) $ 0.00(f)
2004 13.30 (0.14) 1.82 1.68 -- (0.16) (0.16) 0.00(f)
2003 11.24 (0.11) 2.22 2.11 -- (0.05) (0.05) --
2002 10.96 (0.02) 0.34 0.32 $ (0.04) -- (0.04) --
2001(h) 11.92 0.00(f) (0.96) (0.96) -- -- -- --
CLASS C
2005(a) $ 14.77 $ (0.06) $ 1.80 $ 1.74 -- $ (1.29) $ (1.29) $ 0.00(f)
2004 13.25 0.02 1.66 1.68 -- (0.16) (0.16) 0.00(f)
2003 11.19 (0.12) 2.23 2.11 -- (0.05) (0.05) --
2002 10.98 (0.06) 0.37 0.31 $ (0.10) -- (0.10) --
2001(i) 12.25 0.00(f) (1.27) (1.27) -- -- -- --
RATIOS TO AVERAGE NET ASSETS AND SUPPLEMENTAL DATA
-----------------------------------------------------------------------------------
NET NET EXPENSES EXPENSES
ASSET ASSETS, NET NET OF BEFORE
VALUE, END OF INVESTMENT WAIVERS/ WAIVERS/ PORTFOLIO
PERIOD ENDED END OF TOTAL PERIOD INCOME REIMBURSE- REIMBURSE- TURNOVER
SEPTEMBER 30 PERIOD RETURN+ (IN 000'S) (LOSS) MENTS(b) MENTS(c) RATE
- ------------ ---------- ---------- ------------ ----------- ---------- ---------- ------------
MIGHTY MITES(SM) FUND
CLASS AAA
2005(a) $ 15.62 12.4% $ 48,303 0.04%(d) 1.50%(d) 1.73%(d) 4%
2004 15.07 13.6 50,805 (0.20) 1.50 1.66 36
2003 13.42 19.8 51,138 (0.21) 1.50 1.66 14
2002 11.29 3.6 31,103 0.27 1.50 1.78 18
2001 10.99 (2.8) 17,404 0.98 1.52 2.20 66
2000 14.00 23.0 15,165 0.38 1.50 2.01 66
CLASS A
2005(a) $ 15.61 12.3% $ 44 (0.24)%(d) 1.75%(d) 1.98%(d) 4%
2004 15.08 13.3 39 (0.42) 1.75 1.91 36
2003 13.46 19.7 33 (0.46) 1.75 1.91 14
2002(j) 11.36 3.6 1 0.02 1.75 2.03 18
2001 10.97 (3.1) 47 0.73 1.77 2.45 66
2000(e) 14.00 3.9 49 0.13(d) 1.75(d) 2.26(d) 66
CLASS B
2005(a) $ 15.28 12.0% $ 413 (0.72)%(d) 2.25%(d) 2.48%(d) 4%
2004 14.82 12.7 400 (0.95) 2.25 2.41 36
2003 13.30 18.9 517 (0.96) 2.25 2.41 14
2002 11.24 2.9 4 (0.48) 2.25 2.53 18
2001(h) 10.96 (8.1) 4 0.23(d) 2.27(d) 2.95(d) 66
CLASS C
2005(a) $ 15.22 12.0% $ 345 (0.74)%(d) 2.25%(d) 2.48%(d) 4%
2004 14.77 12.7 308 (0.89) 2.25 2.41 36
2003 13.25 19.0 99 (0.96) 2.25 2.41 14
2002 11.19 2.8 59 (0.48) 2.25 2.53 18
2001(i) 10.98 (10.4) 19 0.23(d) 2.27(d) 2.95(d) 66
- --------------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends. Total return for the period of
less than one year is not annualized.
(a) For the period ended March 31, 2005, unaudited.
(b) The ratios do not include a reduction of expenses for custodian fee
credits on cash balances maintained with the custodian. Including such
custodian fee credits, the expense ratios for the Mighty Mites Fund Class
AAA, Mighty Mites Fund Class A, Mighty Mites Fund Class B, and Mighty
Mites Fund Class C would be 1.50%, 1.75%, 2.25% and 2.25%, respectively,
for each period.
(c) During the period, certain fees were voluntarily reduced and/or
reimbursed. If such fee reductions and/or reimbursements had not occurred,
the ratio would have been as shown.
(d) Annualized.
(e) Period from June 15, 2000 (offering date of Class A) to September 30,
2000.
(f) Amount represents less than $0.005 per share.
(g) Per share data is calculated using the average shares outstanding method.
(h) From June 6, 2001 through September 30, 2001, the period through which
Class B Shares were continuously outstanding.
(i) From August 3, 2001 through September 30, 2001, the period through which
Class C Shares were continuously outstanding.
(j) From November 26, 2001 through September 30, 2002, the period through
which Class A Shares were continuously outstanding. From October 1, 2001
through November 25, 2001, no Class A Shares were outstanding.
See accompanying notes to financial statements.
33
THE WESTWOOD FUNDS
==================
One Corporate Center
Rye, New York 10580-1422
GENERAL AND ACCOUNT INFORMATION:
800-GABELLI [800-422-3554]
fax: 914-921-5118
website: www.gabelli.com
e-mail: info@gabelli.com
Board of Trustees
KARL OTTO POHL WERNER J. ROEDER, MD
FORMER PRESIDENT MEDICAL DIRECTOR
DEUTCHE BUNDESBANK LAWRENCE HOSPITAL
ANTHONY J. COLAVITA SALVATORE J. ZIZZA
ATTORNEY-AT-LAW CHAIRMAN
ANTHONY J. COLAVITA, P.C. HALLMARK ELECTRICAL SUPPLIES CORP.
JAMES P. CONN
FORMER CHIEF INVESTMENT OFFICER
FINANCIAL SECURITY ASSURANCE
HOLDINGS LTD.
Officers
BRUCE N. ALPERT JAMES E. McKEE
PRESIDENT AND TREASURER SECRETARY
PETER D. GOLDSTEIN
CHIEF COMPLIANCE OFFICER
INVESTMENT ADVISER
------------------
Gabelli Advisers, Inc.
INVESTMENT SUB-ADVISER
----------------------
Westwood Management Corporation
DISTRIBUTOR
-----------
Gabelli & Company, Inc.
CUSTODIAN
---------
The Bank of New York
LEGAL COUNSEL
-------------
Paul, Hastings, Janofsky & Walker LLP
- --------------------------------------------------------------------------------
This report is submitted for the information of the shareholders of The Westwood
Funds. It is not authorized for distribution to prospective investors unless
preceded or accompanied by an effective prospectus.
- --------------------------------------------------------------------------------
GABWWQ105SR
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period 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.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Board of Trustees has a Nominating Committee comprised of three
"non-interested" (as such term is defined by the Investment Company Act of 1940,
as amended) Trustees, namely Anthony J. Colavita, James P. Conn and Werner J.
Roeder. The Nominating Committee is responsible for identifying and recommending
to the Board of Trustees individuals believed to be qualified to become Board
members in the event that a position is vacated or created. The Nominating
Committee will consider Trustee candidates recommended by shareholders. In
considering candidates submitted by shareholders, the Nominating Committee will
take into consideration the needs of the Board of Trustees, the qualifications
of the candidate and the interests of shareholders. The Nominating Committee may
also take into consideration the number of shares held by the recommending
shareholder and the length of time that such shares have been held. To recommend
a candidate for consideration by the Nominating Committee, a shareholder must
submit the recommendation in writing and must include the following information:
o The name of the shareholder and evidence of the person's ownership of shares
of the Trust, including the number of shares owned and the length of time of
ownership; o The name of the candidate, the candidate's resume or a listing of
his or her qualifications to be a Trustee of the Trust and the person's consent
to be named as a Trustee if selected by the Nominating Committee and nominated
by the Board of Trustees; and o If requested by the Nominating Committee, a
completed and signed Trustees questionnaire.
The shareholder recommendation and information described above must be sent to
the Trust's Secretary c/o Gabelli Funds, LLC, James E. McKee, and must be
received by the Secretary no less than 120 days prior to the anniversary date of
the Trust's most recent annual meeting of shareholders or, if the meeting has
moved by more than 30 days, a reasonable amount of time before the meeting.
The Nominating Committee believes that the minimum qualifications for serving as
a Trustee of the Trust are that the individual demonstrate, by significant
accomplishment in his or her field, an ability to make a meaningful contribution
to the Board of Trustees' oversight on the business and affairs of the Trust and
have an impeccable record and reputation for honest and ethical conduct in both
his or her professional and personal activities. In addition, the Nominating
Committee examines a candidate's specific experiences and skills, time
availability in light of other commitments, potential conflicts of interest and
independence from management and the Trust. The Nominating Committee also seeks
to have the Board of Trustees represent a diversity of backgrounds and
experience.
The Board of Trustees has adopted a Nominating Committee Charter.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers, or
persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the "1940
Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days
of the filing date of the report that includes the disclosure required by
this paragraph, based on their evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR
270.30a-3(d)) that occurred during the registrant's second fiscal quarter
of the period covered by this report that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control
over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and
Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
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) The Westwood Funds
-------------------------------------------------------------------
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
Date June 6, 2005
----------------------------------------------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Bruce N. Alpert
-------------------------------------------------------
Bruce N. Alpert, Principal Executive Officer
and Principal Financial Officer
Date June 6, 2005
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.