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 811-07813 ---------- KOBREN INSIGHT FUNDS - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 20 William Street, Suite 310 WELLESLEY HILLS, MA 02481 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Eric J. Godes Kobren Insight Funds 20 William Street, Suite 310 WELLESLEY HILLS, MA 02481 - -------------------------------------------------------------------------------- (Name and address of agent for service) registrant's telephone number, including area code: 800-456-2736 ------------- Date of fiscal year end: DECEMBER 31 ------------ Date of reporting period: JUNE 30, 2006 -------------- 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, 100 F Street, NE, Washington, DC 20549. 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. - -------------------------------------------------------------------------------- K O B R E N KOBREN INSIGHT MANAGEMENT, INC. [LOGO] KOBREN GROWTH FUND I N S I G H T -------------------------------------------------------------- F U N D S SEMI-ANNUAL REPORT JUNE 30, 2006 - -------------------------------------------------------------------------------- MESSAGE TO SHAREHOLDERS DURING TURBULENT TIMES, KEEP YOUR PERSPECTIVE Watching my hometown Boston Red Sox a few weeks ago as they won their 12th game in a row, I was struck by how the players interviewed after the game sounded the same theme: "It's a long season and we try not to get too high when we are winning, and not too low in a losing streak." Those are words investors should also live by -- yet they often do just the opposite. [PHOTO OF ERIC M. KOBREN] Heading into this year, on the heels of a strong fourth quarter of 2005,investor sentiment was a bullish extreme. So in my MESSAGE in our 2005 Annual Report, I "countered" with my list of concerns for 2006; first and foremost that the "inflation dragon "had not yet been slain, which meant higher inflation and higher interest rates to come. And I concluded that it would likely be a year of subpar returns for both stock and bond funds. DID THE WORLD REALLY CHANGE ON MAY 10? For most of the first half of the year, the market shrugged off those concerns. Inflation appeared under control and the prevailing view was that the Fed was close to finishing its series of rate hikes. On May 10, the Dow closed within a mere 80 points of its all-time high, set back in March 2000. For the year through that date, the large-cap S&P 500 Index was up a solid 6.7%; and small-cap stocks (Russell 2000 Index) had soared 15.7% -- it sure didn't look like a subpar year for stocks. But May 10 proved to be the high-water mark (so far) this year, and the beginning of a steep sell off in almost every asset class, with the riskiest sectors being hit the hardest. Did the world abruptly change on that day? No, the reality is that it was nowhere near as welcoming for stocks as the markets' performance up to that point suggested. Investors just finally awoke to the fact that monetary conditions were not favorable to stocks. What triggered the sea-change in investors' attitudes that day wasn't so much that the Fed raised rates for a 16th time (that was widely expected), but rather the tough talk about increased inflation concerns from Chairman Bernanke and others in the days that followed. Suddenly the end of their rate hikes seemed a lot farther away. THINGS AREN'T THAT BAD Starting in mid-June, the markets have rallied back to regain some of those losses. But I would not get too carried away; I still expect a tough and volatile market through much of this year. At the same time, things are not nearly as bad for stocks as their performance during the sell off might suggest. And the much anticipated end to the Fed's rate hikes could, in fact, be in sight. From the beginning of this year, I have said that the Fed would not stop until there were clear signs that the economy was slowing down. Well, we are starting to see those signs. In particular, the housing market -- a big driver of the economy in recent years -- is cooling substantially. While new home sales were up in May, they are still down 5.9% compared to last year, and sales of existing homes are off 6.6% from a year ago. Moreover, mortgage applications continue to weaken. Purchase applications are off 19% from a year ago, while refinancings (a major source of consumer spending) are off a whopping 46%. While the Fed raised rates for a 17th time on June 29 to 5.25% (once again, as widely expected), they did acknowledge that the economy was slowing -- in part due to the weakening housing market. They stated that this "should help limit inflationary pressures over time," though "some inflation risks remain." Investors interpreted that to mean the Fed was done or would be done after their next meeting in August, which provided most of the fuel for a 217 point rally in the Dow that day. Why? Well, historically, the average time between the Fed's last hike and its first rate cut is just 5-6 months. So by late this year or early next, we could be looking at more favorable monetary conditions for stocks again. BE LIKE THE RED SOX As noted, I still expect a challenging time for stocks, with a great deal of volatility. But when the dust settles, I'm expecting modest gains for the year. The most important thing to do in turbulent times is to be like the Red Sox and keep your perspective. The key to long-term investment success is patience. Sincerely, /s/ Eric M. Kobren Eric M. Kobren President and Portfolio Manager - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- KOBREN GROWTH FUND (6/30/06) - -------------------------------------------------------------------------------- VALUE OF $10,000 INVESTED 12/16/96 [THE FOLLOWING TABLE WAS REPRESENTED AS A LINE CHART IN THE PRINTED MATERIAL.] Kobren Growth 12/16/1996 10,000 12/31/1996 10,240 3/31/1997 10,420 6/30/1997 11,560 9/30/1997 12,170 12/31/1997 11,779 3/31/1998 13,089 6/30/1998 13,181 9/30/1998 11,226 12/31/1998 13,128 3/31/1999 13,965 6/30/1999 15,148 9/30/1999 14,133 12/31/1999 17,027 3/31/2000 17,693 6/30/2000 16,583 9/30/2000 16,383 12/31/2000 15,367 3/31/2001 14,219 6/30/2001 15,217 9/30/2001 12,885 12/31/2001 14,249 3/31/2002 14,650 6/30/2002 13,610 9/30/2002 12,006 12/31/2002 12,644 3/31/2003 12,328 6/30/2003 14,046 9/30/2003 14,475 12/31/2003 16,179 3/31/2004 16,664 6/30/2004 16,524 9/30/2004 16,473 12/31/2004 17,968 3/31/2005 17,763 6/30/2005 17,942 9/30/2005 18,929 12/31/2005 19,445 3/31/2006 20,537 6/30/2006 20,133 - -------------------------------------------------------------------------------- 12 MONTHS ANNUALIZED ANNUALIZED YTD ENDED FIVE SINCE INCEPTION TOTAL RETURN (%) 6/30/06 6/30/06 YEARS (12/16/96) - ------------------- ------- --------- ---------- --------------- Kobren Growth 3.54% 12.21% 5.76% 7.61% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- ASSET ALLOCATION* - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.] U.S. Stocks 65.9% International 13.1% Alternative 11.1% Bond 6.5% Cash & Net Other Assets and Liab. 3.4% - -------------------------------------------------------------------------------- STYLE ALLOCATION* - -------------------------------------------------------------------------------- [THE FOLLOWING TABLE WAS REPRESENTED AS A PIE CHART IN THE PRINTED MATERIAL.] Large Cap Growth 31.5% Large Cap Value 19.1% International 13.1% Alternative 11.1% Small Cap Value 8.4% Large Blend 6.9% Bond 6.5% Cash & Net Other Assets and Liab. 3.4% *BASED ON TOTAL NET ASSETS. KOBREN GROWTH FUND (Ticker: KOGRX): Your Fund returned 3.5% for the first half of 2006 compared to the S&P 500's return of 2.7%. We continue to see strong gains out of our international funds: JULIUS BAER INTERNATIONAL EQUITY, SSGA EMERGING MARKETS, and THIRD AVENUE INTERNATIONAL VALUE. The gains were partly due to a weaker dollar, but also due to impressive security selection by the managers. Long-time portfolio holding LONGLEAF PARTNERS, a domestic value fund, also boosted returns, posting nearly a 9% return for the first six months of the year. On the other side of the ledger, one fund that hampered performance was T. ROWE PRICE BLUE CHIP GROWTH, as high quality, blue chip stocks have not been rewarded in recent years. Another long-term holding that lagged earlier this year for similar reasons is OAKMARK SELECT. However, we continue to have confidence in the management and positioning of both of these funds. Blue chips remain a substantial part of Kobren Growth, both for their diversification benefits as well as our opinion that blue chips stocks are becoming increasingly attractive due to relative valuations. PIMCO ALL ASSET also detracted from returns early in the year, however, its unique mix of asset classes provides an attractive combination of diversification and "hedge" benefits. Given the cross-currents in the economy, and the increased volatility in the markets, we will continue to emphasize diversification and quality funds within the portfolio. - -------------------------------------------------------------------------------- TOP TEN HOLDINGS* - -------------------------------------------------------------------------------- KOBREN GROWTH STYLE ALLOC (%) - ------------------------------------ ----------------- --------- Oakmark Select - Class I Large Cap Value 19.1 Fidelity Capital Appreciation Large Cap Growth 17.4 T. Rowe Price Blue Chip Growth Large Cap Growth 14.1 Longleaf Partners Small Cap Small Cap Value 8.4 Longleaf Partners Large Blend 6.9 PIMCO All Asset - Class I Alternative 6.4 Julius Baer Int'l Equity - Class I International 5.8 Third Avenue Int'l Value International 4.9 PIMCO Foreign Bond (unhedged) Bond 4.3 Dreyfus Cash Management Plus Money Market 3.4 TOTAL FUND NET ASSETS $68,195,524 - -------------------------------------------------------------------------------- TOP SECTORS** - -------------------------------------------------------------------------------- (TOTALS MAY NOT EQUAL 100%) [THE FOLLOWING TABLE WAS REPRESENTED AS A BAR GRAPH IN THE PRINTED MATERIAL.] Financial Services 17.9 Consumer Services 14.2 Industrial Materials 13.0 Media 9.9 Business Services 9.9 Hardware 9.5 Healthcare Services 7.1 Consumer Goods 7.0 Energy 6.0 Telecommunication 4.3 Software 1.1 Utilities 0.2 **EQUITIES ONLY - -------------------------------------------------------------------------------- Kobren Insight Management, Inc. is the adviser for Kobren Insight Funds, and E*TRADE Securities LLC, is the distributor for the Funds. PERFORMANCE DATA REFLECTS PAST PERFORMANCE AND IS NOT A GUARANTEE OF FUTURE RESULTS. PERFORMANCE DATA DOES NOT REFLECT TAXES THAT A SHAREHOLDER WOULD PAY ON DISTRIBUTIONS OR THE REDEMPTION OF SHARES AND WOULD HAVE BEEN LOWER IN THE ABSENCE OF FEE WAIVERS AND EXPENSE REIMBURSEMENTS. RETURN FIGURES INCLUDE REINVESTMENT OF DISTRIBUTIONS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE WITH MARKET CONDITIONS AND SHARES WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. The S&P 500 Index is an unmanaged index of common stocks and not subject to fees and expenses. - -------------------------------------------------------------------------------- 2 KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- PORTFOLIO OF INVESTMENTS - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED) - -------------------------------------------------------------------------------- SHARES MUTUAL FUNDS - 100.01% VALUE (NOTE 1) - -------------------------------------------------------------------------------- LARGE CAP GROWTH - 31.50% - -------------------------------------------------------------------------------- 448,452 Fidelity Capital Appreciation Fund $ 11,897,442 296,671 T. Rowe Price Blue Chip Growth Fund 9,582,480 --------------- 21,479,922 LARGE CAP VALUE - 19.11% - -------------------------------------------------------------------------------- 389,378 Oakmark Select Fund - Class I 13,032,477 INTERNATIONAL EQUITY- 13.04% - -------------------------------------------------------------------------------- 98,233 Julius Baer International Equity Fund - Class I 3,963,722 78,943 SSgA Emerging Markets Fund 1,615,953 144,606 Third Avenue International Value Fund 3,312,919 --------------- 8,892,594 ALTERNATIVE - 11.13% - -------------------------------------------------------------------------------- 47,940 Franklin Gold and Precious Metals Fund 1,520,188 351,511 PIMCO All Asset Fund - Class I 4,351,701 117,076 PIMCO Commodity RealReturn Strategy Fund - Class I 1,721,025 --------------- 7,592,914 SMALL CAP VALUE - 8.38% - -------------------------------------------------------------------------------- 204,843 Longleaf Partners Small Cap Fund 5,715,107 LARGE BLEND - 6.90% - -------------------------------------------------------------------------------- 139,448 Longleaf Partners Fund 4,706,374 BOND - 6.53% - -------------------------------------------------------------------------------- 109,594 Loomis Sayles Bond Fund 1,494,857 290,079 PIMCO Foreign Bond Fund Unhedged 2,958,802 --------------- 4,453,659 MONEY MARKET - 3.42% - -------------------------------------------------------------------------------- 2,329,116 Dreyfus Cash Management Plus Fund (1) 2,329,116 TOTAL MUTUAL FUNDS (COST $56,887,630) 68,202,163 --------------- TOTAL INVESTMENTS 100.01% 68,202,163 (Cost $56,887,630)* LIABILITIES NET OF CASH AND OTHER ASSETS -0.01% (6,639) -------- --------------- TOTAL NET ASSETS 100.00% $ 68,195,524 ======== =============== (1) An affiliate of the Custodian. *For Federal income tax purposes, cost is $56,887,630 and appreciation (depreciation) is as follows: Unrealized appreciation: $ 11,496,553 Unrealized depreciation: (182,020) ------------- Net unrealized appreciation: $ 11,314,533 ============= SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- INTERNATIONAL INVESTING HAS SPECIAL RISKS, INCLUDING CURRENCY FLUCTUATION, POLITICAL AND ECONOMIC INSTABILITY, AND THE VOLATILITY OF EMERGING MARKETS. The Adviser absorbs certain expenses of each Kobren Insight Fund, without which total returns would have been lower. Portfolio holdings are also subject to change. Data sources: Kobren Insight Management, Inc. and Morningstar. THIS REPORT MUST BE PRECEDED OR ACCOMPANIED BY A PROSPECTUS. PLEASE READ IT CAREFULLY BEFORE INVESTING. YOU MAY OBTAIN A PROSPECTUS OR CURRENT PERFORMANCE INFORMATION BY CALLING 1-800-4KOBREN (1-800-456-2736) OR BY VISITING WWW.KOBREN.COM. Copyright (C)2006 - -------------------------------------------------------------------------------- KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT 3 - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- JUNE 30, 2006 (UNAUDITED) ASSETS: Investments, at cost $ 56,887,630 =============== Investments, at value (Note 1) (See Portfolio of Investments) $ 68,202,163 Dividends receivable 20,468 Receivable for fund shares sold 26,781 Prepaid expenses and other assets 4,068 --------------- Total assets 68,253,480 --------------- LIABILITIES: Investment advisory fee payable (Note 2) 36,558 Administration fees (Note 2) 8,709 Audit fees payable 3,500 Transfer agent fees payable (Note 3) 2,966 Accrued Trustees' fees and expenses (Note 2) 1,910 Accrued expenses and other payables 4,313 --------------- Total liabilities 57,956 --------------- NET ASSETS $ 68,195,524 =============== NET ASSETS CONSIST OF: Accumulated undistributed net investment income $ 65,755 Accumulated net realized gain on investments sold 6,891,302 Net unrealized appreciation of investments 11,314,533 Par value (Note 5) 4,566 Paid-in capital 49,919,368 --------------- NET ASSETS $ 68,195,524 =============== SHARES OUTSTANDING (UNLIMITED AUTHORIZATION) 4,566,217 =============== Net asset value, offering and redemption price per share (Net Assets/Shares Outstanding) $ 14.93 =============== SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 4 KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS - -------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED JUNE 30, 2006 (UNAUDITED) INVESTMENT INCOME: Dividends $ 135,480 --------------- Total investment income 135,480 --------------- EXPENSES: Investment advisory fee (Note 2) 255,746 Administration fee (Note 2) 40,014 Transfer agent fees (Note 2) 22,671 Sub-transfer agent fees (Note 3) 9,684 Custodian fees (Note 2) 1,671 Audit fees 1,000 Legal fees 26,461 Trustees' fees and expenses (Note 2) 5,436 Registration and filing fees 413 Reports to shareholders 1,771 Other 3,254 --------------- Total expenses 368,121 Expenses waived by investment adviser (Note 2) (27,127) Other reductions (Note 2) (7,022) --------------- Net expenses 333,972 --------------- NET INVESTMENT LOSS (198,492) --------------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain from security transactions 3,354,397 Short-term capital gain distributions received 102,093 Long-term capital gain distributions received 324,695 Net change in unrealized depreciation of investments (1,187,345) --------------- Net realized and unrealized gain on investments 2,593,840 --------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,395,348 =============== SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT 5 - -------------------------------------------------------------------------------- STATEMENTS OF CHANGES IN NET ASSETS - -------------------------------------------------------------------------------- SIX MONTHS ENDED JUNE 30, 2006 YEAR ENDED (UNAUDITED) DECEMBER 31, 2005 ---------------- ----------------- Net investment income (loss) $ (198,492) $ 587,802 Net realized gain from security transactions 3,354,397 1,559,506 Short-term capital gain distributions received 102,093 175,413 Long-term capital gain distributions received 324,695 2,938,384 Net change in unrealized depreciation of investments (1,187,345) (90,422) --------------- ---------------- Net increase in net assets resulting from operations 2,395,348 5,170,683 Distribution to shareholders from: Net investment income -- (761,605) Net realized gains on investments -- (2,543,765) --------------- ---------------- Total distributions -- (3,305,370) --------------- ---------------- Net increase (decrease) in net assets from fund share transactions (Note 5) (805,288) 7,897,491 --------------- ---------------- Net increase in net assets 1,590,060 9,762,804 NET ASSETS: Beginning of period 66,605,464 56,842,660 --------------- ---------------- End of period (including line A) $ 68,195,524 $ 66,605,464 =============== ================ (A) Accumulated undistributed net investment income $ 65,755 $ 264,247 =============== ================ SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 6 KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- FOR A FUND SHARE OUTSTANDING THROUGHOUT THE PERIOD. - -------------------------------------------------------------------------------- FOR THE SIX MONTHS FOR THE ENDED 6/30/2006 ----------------------- YEAR ENDED ------------------------ (UNAUDITED) 12/31/2005 12/31/2004 12/31/2003 12/31/2002 12/31/2001 ------------------ ---------- ---------- ---------- ---------- ----------- Net asset value - beginning of period $ 14.42 $ 14.02 $ 12.69 $ 10.01 $ 11.37 $ 12.32 Net investment income (loss) (a)(b) (0.04) 0.12 0.08 0.12 0.07 (0.04) Short-term capital gains distributions received 0.02 0.04 0.03 0.02 0.01 0.01 Net realized and unrealized gain (loss) on investments 0.53 0.99 1.29 2.66 (1.36) (0.87) --------- ---------- ---------- ---------- ---------- ----------- Net increase (decrease) in net assets resulting from investment operations 0.51 1.15 1.40 2.80 (1.28) (0.90) Distributions from net investment income -- (0.17) (0.07) (0.12) (0.07) -- Distributions from net realized short-term capital gain distributions received -- -- -- -- (0.01) -- Distributions from net realized capital gains on investments -- (0.58) -- -- -- (0.05) --------- ---------- ---------- ---------- ---------- ----------- Total distributions -- (0.75) (0.07) (0.12) (0.08) (0.05) Net asset value - end of period $ 14.93 $ 14.42 $ 14.02 $ 12.69 $ 10.01 $ 11.37 ========= ========== ========== ========== ========== =========== Total return (c) 3.54%(d) 8.22% 11.05% 27.96% (11.26)% (7.28)% ========= ========== ========== ========== ========== =========== RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's) $ 68,196 $ 66,605 $ 56,843 $ 54,648 $ 46,491 $ 55,335 Ratio of net investment income (loss) to average net assets (b) (0.58)% 0.93% 0.63% 1.06% 0.61% (0.32)% Ratio of operating expenses to average net assets before fees waived and/or expenses reimbursed by investment advise and other reductions (e) 1.08% 1.12% 1.16% 1.18% 1.21% 1.08% Ratio of operating expenses to average net assets after reimbursements and reductions (e) 0.98% 0.98% 0.98% 0.96% 0.96% 0.96% Portfolio turnover rate 31%(d) 29% 30% 81% 143% 80% - -------------------------------------------------------------------------------- (a) Recognition of net investment income (loss) by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests. (b) Net investment income (loss) would have been lower (greater) in the absence of fee waivers and expense reimbursements. (c) Total return represents aggregate total return for the period indicated and would have been lower in the absence of fee waivers and expense reimbursements and assumes reinvestment of all distributions. (d) Not Annualized. (e) Does not include expenses of the investment companies in which the Fund invests. SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT 7 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (unaudited) - -------------------------------------------------------------------------------- JUNE 30, 2006 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES: Kobren Insight Funds (the "Trust") was organized on September 13, 1996, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a no-load, open-end diversified management investment company. As of June 30, 2006, the Trust offered shares of two funds, Kobren Growth Fund and Delphi Value Fund. Information presented in these financial statements pertains only to Kobren Growth Fund (the "Fund"). The Fund seeks to achieve its investment objective by investing primarily in shares of other investment companies ("underlying funds"), but also may invest directly in securities that are suitable investments for the Fund. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. USE OF ESTIMATES -- The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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. PORTFOLIO VALUATION -- The underlying funds are valued according to their stated net asset value. The Fund's other investment securities are valued at the last sale price on the securities exchange or national securities market on which such securities primarily are traded or for NASDAQ traded securities, the NASDAQ Official Closing Price. Securities not listed on an exchange or national securities market, or securities in which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. Short-term investments are carried at amortized cost, which approximates value. Any securities or other assets for which recent market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board of Trustees. DIVIDENDS AND DISTRIBUTIONS -- It is the policy of the Fund to declare and pay dividends from net investment income annually. The Fund will distribute net realized capital gain (including net short-term capital gain), if any, annually, unless offset by any available capital loss carry forward. Additional distributions of net investment income and capital gain for the Fund may be made in order to avoid the application of a 4% non-deductible excise tax on certain undistributed amounts of ordinary income and capital gain. Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences are due primarily to differing treatments of income and gain on various investment securities held by the Fund. The tax character of distributions paid during 2005 and 2004 was as follows: DISTRIBUTIONS PAID IN 2005 DISTRIBUTIONS PAID IN 2004 -------------------------- -------------------------- ORDINARY LONG-TERM ORDINARY LONG-TERM INCOME CAPITAL GAINS INCOME CAPITAL GAINS ---------- ------------- ----------- ------------- Kobren Growth Fund $ 73,683 $ 2,531,687 $ 293,054 $ -- As of December 31, 2005, the most recent year end, the components of distributable earnings on a tax basis were as follows: CAPITAL LOSS UNDISTRIBUTED UNDISTRIBUTED UNREALIZED CARRYFORWARD ORDINARY INCOME LONG-TERM GAIN APPRECIATION ------------- --------------- -------------- ------------ Kobren Growth Fund $ -- $ 509,293 $ 2,963,481 $ 12,433,862 *For tax purposes, short-term capital gain distributions are considered ordinary income. Net investment income and realized gain and loss for federal income tax purposes may differ from that reported in the financial statements because of permanent book and tax basis differences. - -------------------------------------------------------------------------------- 8 KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (unaudited) - -------------------------------------------------------------------------------- JUNE 30, 2006 SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the specific identified cost basis. Dividend income is recognized on the ex-dividend date. Interest income is recognized on the accrual basis. All discounts/premiums are accreted/amortized using the effective yield method. FEDERAL INCOME TAX -- The Fund has qualified and intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, applicable to regulated investment companies, by distributing substantially all of its earnings to its shareholders. Therefore, no federal income or excise tax provision is applicable. EXPENSES -- Expenses of the Trust which are directly identifiable to a specific fund are allocated to that fund. Other expenses of the Trust are allocated between the funds based upon relative net assets of each fund. Other expenses of the Trust are allocated equally to those funds in the Trust. COMMITMENTS AND CONTINGENCIES -- In the normal course of business, the Trust enters into contracts on behalf of the Fund that contain a variety of provisions for general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that are not known at this time. However, based on experience, the Fund believes the risk of loss is remote. 2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND RELATED PARTY TRANSACTIONS: The Trust has entered into an investment advisory agreement with Kobren Insight Management,Inc.("KIM"),which was acquired by E*TRADE FINANCIAL Corporation ("E*TRADE FINANCIAL") on November 2, 2005. The Fund pays KIM a fee, computed daily and paid monthly, at the annual rate of 0.75% of the Fund's average daily net assets. KIM has voluntarily agreed to limit the Fund's other operating expenses, before other reductions, to 0.25% of the Fund's average daily net assets. This voluntary agreement may be terminated at the discretion of the Adviser. As of November 2, 2005, E*TRADE Securities LLC ("E*TRADE Securities"), an affiliate of KIM, serves as distributor of the Fund's shares and bears all distribution costs. No distribution fees are paid by the Fund. The Fund also receives reimbursement of 12b-1 distribution fees, service fees or revenue sharing payments paid to E*TRADE Securities by certain fund investments held in the portfolio of the Fund. Prior to November 2, 2005, Kobren Insight Brokerage, Inc. served as distributor of the Fund. For the six months ended June 30, 2006, expense reimbursements and other reductions were as follows: EXPENSES REIMBURSED INVESTMENT ADVISER OTHER REDUCTIONS(1) -------------------------------------- ------------------- Kobren Growth Fund $ 27,127 $ 7,022 (1) Reimbursements to the Fund from 12b-1 distribution fees. The Trust has also entered into an administration agreement with PFPC Inc. (the "Administrator"), a member of PNC Financial Services Group, Inc. The Administrator also serves as the Trust's transfer agent and dividend paying agent. Mellon Trust of New England, N.A., an indirectly wholly-owned subsidiary of Mellon Financial Corporation, serves as the Trust's custodian. No officer, director or employee of KIM, E*TRADE Financial, the Administrator, or any affiliate thereof, receives any compensation from the Trust for serving as a trustee or officer of the Trust. Each trustee who is not an "affiliated person" receives an annual retainer - -------------------------------------------------------------------------------- KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT 9 - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (unaudited) - -------------------------------------------------------------------------------- JUNE 30, 2006 fee of $5,000 plus $1,000 for each board meeting attended and $500 for each committee meeting attended. The Trust also reimburses out-of-pocket expenses incurred by each trustee in attending such meetings. 3. SUB-TRANSFER AGENT FEES: The Fund is subject to sub-transfer agent fees consisting of broker-dealer and fund network fees. The Fund pays participating networks a monthly fee for maintaining shareholder accounts at an annual rate of up to 0.10% of the average daily balances of fund accounts invested through those networks. 4. PURCHASES AND SALES: The aggregate amounts of purchases and sales of the Fund's investment securities, other than short-term securities, for the six months ended June 30, 2006, were $21,073,285 and $23,531,227 of non-governmental issues, respectively. 5. SHARES OF BENEFICIAL INTEREST: As of June 30, 2006, an unlimited number of shares of beneficial interest, par value $0.001, were authorized for the Trust. Changes in shares of beneficial interest for the Fund were as follows: SIX MONTHS ENDED YEAR ENDED JUNE 30, 2006 DECEMBER 31, 2005 ----------------------- ------------------------- SHARES AMOUNT SHARES AMOUNT -------- ------------ --------- ------------- Shares sold 223,076 $ 3,358,095 1,255,427 $ 17,677,387 Shares issued as reinvestment of distributions -- -- 227,113 3,274,975 Shares redeemed (276,463) (4,163,383) (917,093) (13,054,871) -------- ------------ --------- ------------- Net increase (decrease) (53,387) $ (805,288) 565,447 $ 7,897,491 ======== ============ ========= ============= At June 30, 2006, KIM and its affiliates owned 1,056,633 shares of the Fund representing 23.1% of the total outstanding shares. 6. RISK FACTORS OF THE FUND: Indirectly investing in underlying funds through Kobren Growth Fund involves additional and duplicative expenses and certain tax results that would not be present if an investor were to make a direct investment in the underlying funds. The Fund, together with any "affiliated persons" (as such term is defined in the 1940 Act) may purchase only up to 3% of the total outstanding securities of an underlying fund. Accordingly, when the Trust, KIM or their affiliates hold shares of any of the underlying funds, the Fund's ability to invest fully in shares of such underlying funds may be restricted, and KIM must then, in some instances, select alternative investments for the Fund. 7. SUBSEQUENT EVENT: On June 29, 2006, the Kobren Insight Funds' ("KIF") Board of Trustees voted to reorganize Kobren Growth Fund and Delphi Value Fund into two new shell series of the E*TRADE Trust (the "Reorganization"), subject to shareholder approval, before the end of 2006. The two new funds will be substantially similar to the existing KIF and will retain their current Portfolio Managers as well as investment objectives and policies. Shareholders of record will be requested to vote upon the Reorganization pursuant to a proxy statement that describes in more detail the KIF board's deliberations. - -------------------------------------------------------------------------------- 10 KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (unaudited) - -------------------------------------------------------------------------------- JUNE 30, 2006 FORM N-Q: The Trust files complete Portfolio of Investments for the Fund with the U.S. Securities and Exchange Commission (the "SEC") for the Trust's first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the SEC's website at www.sec.gov and are available for review and copying at the SEC's Public Reference Room in Washington, D.C. Information on the operations of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. PROXY VOTING: Kobren Growth Fund's Proxy Voting Policies and Procedures, used to determine how to vote proxies relating to portfolio securities, are included in the Trust's Statement of Additional Information ("SAI"), and are also available (i) upon request, without charge, by calling 1-800-4KOBREN(800-456-2736); (ii)on Kobren Growth Fund's website at www.kobren.com; and (iii) on the SEC's website at www.sec.gov. Kobren Growth Fund's Proxy Voting Record for the mostrecent twelve-month period ended June 30 is available i) upon request, without charge, by calling 1-800-4KOBREN(800-456-2736); (ii) on Kobren Growth Fund's web site at www.kobren.com; and (iii) on the SEC's website at www.sec.gov. DISCLOSURE OF FUND EXPENSES: We believe it is important for you to understand the impact of fees regarding your investment. All mutual funds have operating expenses. As a shareholder of a mutual 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 the fund. 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 fees (in dollars) of investing in the 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. This table illustrates the Fund's costs in two ways: ACTUAL FUND RETURN: This section helps you to estimate the actual expenses, after any applicable fee waivers, that you paid over the period. The "Ending Account Value" shown is derived from the Fund's actual return for the past six month period, the "Expense Ratio" column shows the period's annualized expense ratio, and the "Expenses Paid During Period" column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund at the beginning of the period. You may use the information here, together with your account value, 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 in the first line under the heading entitled "Expenses Paid During Period." HYPOTHETICAL 5% RETURN: This section is intended to help you compare your Fund's costs with those of other mutual funds. It assumes that the Fund had an annual return of 5% before expenses, but that the expense ratio is unchanged. In this case, because the return used is not the Fund's - -------------------------------------------------------------------------------- KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT 11 - -------------------------------------------------------------------------------- ADDITIONAL INFORMATION (unaudited) - -------------------------------------------------------------------------------- JUNE 30, 2006 actual return, the results do not apply to your investment. This example is useful in making comparisons to other mutual funds because the SEC requires all mutual funds to calculate expenses based on an assumed 5% annual return. You can assess your Fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. Please note that the expense shown in the table are meant to highlight and help you compare your ongoing costs only and do not reflect any transactional costs such as sales charges (loads) and redemption fees, which are described in the Prospectus. If these costs were applied to your account, your costs would be higher. BEGINNING ACCOUNT ENDING ACCOUNT EXPENSE EXPENSES PAID VALUE 01/01/06 VALUE 06/30/06 RATIO(1) DURING PERIOD(2) ----------------- -------------- -------- ---------------- ACTUAL FUND RETURN $ 1,000 $ 1,035.40 0.98% $ 4.95 HYPOTHETICAL 5% RETURN $ 1,000 $ 1,019.93 0.98% $ 4.91 (1) Annualized, based on the Fund's most recent fiscal half-year expenses. (2) 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. - -------------------------------------------------------------------------------- 12 KOBREN INSIGHT FUNDS -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- K O B R E N [LOGO] DELPHI VALUE FUND I N S I G H T ----------------------------------------------------------------- F U N D S SEMI-ANNUAL REPORT JUNE 30, 2006 - -------------------------------------------------------------------------------- Dear Shareholders, [PHOTO OF SCOTT M. BLACK] We are pleased to report that the Delphi Value Fund outdistanced all of the popular indices - the S&P 500 Index, the Dow Jones Industrials, and the NASDAQ Composite - in the first half of 2006 with a gain of 6.6% (institutional class, +6.8%) versus 2.8%, 3.7%, and -1.2%, respectively, for the aforementioned broadbased averages. Quite candidly, the first half gyrations in the U.S. equity markets could be characterized as a roller coaster ride. From January 1st through May 9th, the day when Fed Chairman Ben Bernanke articulated that the U.S. inflation rate surpassed his comfort zone, the overall stock market rallied nicely. Concomitantly, the Fund peaked on May 9th at 19.30 per share (institutional class 19.63), up 11.4% through that date. With Bernanke's continued admonishments on inflation, the S&P 500 bottomed on June 13th at 1223.69, at that point down 1.1% for the year. After a more sanguine outlook at the Fed meeting on June 13th, the stock market resumed its upward course. Two salient points are noteworthy. First, while macro-economic factors certainly influence the overall direction of U.S. equities, we perform no market timing at the Delphi Value Fund. Rather we remain "fully invested" at all times allocating your monies to what we believe to be good businesses. Second, over 75% of your portfolio companies posted record quarterly earnings year over year. Notwithstanding, superior businesses were slammed in the May-June stock market downdraft. For example, all eight energy holdings registered earnings gains, yet they fluctuated irrationally with every small change in oil and gas prices. Benjamin Graham's quote, "In the short-term, the stock market is a voting machine; in the long-term, a weighing machine" is a highly appropriate reminder in these volatile times. An analysis of the individual holdings indicates that, on the whole, metals and energy securities produced the best gains in the first half of 2006. Denbury Resources(+39.0%), Marathon Oil (+36.6%), and Norsk Hydro (+29.4%) recorded stellar gains. Similarly, Inco (+51.3%) and Gerdau Ameristeel (+35.4%) benefited from strong nickel and steel prices, respectively. Two unrelated issues, MEMC Electronics (+69.1%), the leading manufacturer of pure silicon wafers, and American Eagle Outfitters (+48.1%), a specialty teen retailer, fortuitously advanced. Conversely, both the homebuilding and the regional newspaper stocks underperformed. D.R. Horton (-33.3%) and Lennar (-27.3%) declined sharply because of higher mortgage rates and the nationwide slowdown in new home sales. For the record, the average selling price per home in the latest quarter was $296,000 and $326,000 for Horton and Lennar; certainly not speculative" bubble prices." Additionally, both stocks finished the half at 5x forecast current year's earnings. McClatchy (-32.1%) and Lee Enterprises (-27.0%) dipped because of the deceleration in ad spending and circulation revenues. Admittedly, new on-line technologies like Monster and Google have siphoned off ad revenue from traditional newspapers. However, both Lee and McClatchy continue to generate strong free cash flows. Reviewing portfolio activity, one finds that two industrial concerns were acquired. Gerdau Ameristeel, the second largest minimill steel company in North America with 8.4 million tons capacity, was purchased at 6.3x forecast 2006 earnings. Westlake Chemicals, a producer of commodity chemicals like ethylene derivatives was bought at 8.1x expected 2006 earnings. Additionally, two hotel REIT's with good growth prospects - Ashford Hospitality and Diamondrock Hospitality - were added to the Fund. Three portfolio holdings, La-Z-Boy, Polo Ralph Lauren, and Community Bank System, were divested with gains because of full valuations. We expect that U.S. equities will remain volatile throughout the remainder of 2006 buffeted by numerous crosswinds. On the positive side are several factors: (i) Foremost, the S&P 500 is currently selling at 16x estimated 2006 earnings, its lowest reading over the past decade; (ii) While real GDP growth is slowing from the first quarter of 2006, the anticipated 2 1/2% to 3% real growth for the remainder of the year is still healthy; (iii) The Fed's tightening should diminish the rate of inflation (change in Consumer Price Index) from 4.1% over the past twelve months to 3% ex-ante. With the Fed funds rate currently standing at 5 1/4%, a potential 25 basis point increase in August should signal the top of the cycle. On the other hand, the geopolitical events have raised the risk premium on equities, thereby lowering p/e valuations. North Korea's testing of ballistic missiles, the Iranian nuclear enrichment program, and the renewed Arab-Israeli conflict have cast a giant shadow over global equities. The instability of the world'soilsupply (specifically, Venezuela, Ecuador, Nigeria, and Iran) with the concomitant global growth in demand augurs for ever higher U.S. gasoline prices and constricted consumption for non-energy goods and services. We thank you for your continued support. Best regards, /s/ Scott M. Black Scott M. Black President - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- P O R T F O L I O O F I N V E S T M E N T S - -------------------------------------------------------------------------------- J U N E 3 0, 2 0 0 6 ( U N A U D I T E D ) SHARES VALUE (NOTE 1) - -------------------------------------------------------------------------------- COMMON STOCKS - 93.19% - -------------------------------------------------------------------------------- AEROSPACE/TECHNOLOGY - 7.91% - -------------------------------------------------------------------------------- 46,000 Arrow Electronics, Inc. (1) $ 1,481,200 65,500 Avnet, Inc. (1) 1,311,310 49,700 MEMC Electronic Materials, Inc. (1) 1,863,750 119,400 Micron Technology, Inc. (1) 1,798,164 84,000 Seagate Technology (1) 1,901,760 108,000 Western Digital Corp. (1) 2,139,480 ---------------- 10,495,664 BANKING - 8.03% - -------------------------------------------------------------------------------- 39,000 Citigroup, Inc. 1,881,360 67,200 Colonial BancGroup, Inc. 1,725,696 14,900 North Fork Bancorporation, Inc. 449,533 61,500 Southwest Bancorp, Inc. 1,568,250 50,000 TD Banknorth, Inc. 1,472,500 29,700 Webster Financial Corp. 1,408,968 32,015 Wells Fargo & Co. 2,147,566 ---------------- 10,653,873 BASIC MATERIALS - 5.86% - -------------------------------------------------------------------------------- 30,050 Cytec Industries, Inc. 1,612,483 38,700 Dow Chemical Co. 1,510,461 134,000 Gerdau Ameristeel Corp. 1,345,360 13,800 Inco, Ltd. 909,420 88,500 NovaGold Resources Inc. (1) 1,134,570 42,500 Westlake Chemical Corp. 1,266,500 ---------------- 7,778,794 CONGLOMERATES - 4.18% - -------------------------------------------------------------------------------- 1,174 Berkshire Hathaway, Inc., Class B (1) 3,572,482 74,000 Norsk Hydro ASA, SP ADR 1,976,540 ---------------- 5,549,022 CONSTRUCTION & REAL ESTATE - 6.37% - -------------------------------------------------------------------------------- 20,400 Boston Properties, Inc., REIT 1,844,160 54,069 D.R. Horton, Inc. 1,287,923 31,080 Lennar Corp., Class A 1,379,020 127,000 NorthStar Realty Finance Corp., REIT 1,525,270 40,100 Toll Brothers, Inc. (1) 1,025,357 73,400 U-Store-It Trust, REIT 1,384,324 ---------------- 8,446,054 CONSUMER RELATED - 5.94% - -------------------------------------------------------------------------------- 117,000 Ashford Hospitality Trust, REIT 1,476,540 77,500 DiamondRock Hospitality Co., REIT 1,147,775 58,000 Disney (Walt) Co. 1,740,000 51,000 Sunstone Hotel Investors, Inc., REIT 1,482,060 19,500 Toyota Motor Corp., SP ADR 2,039,505 ---------------- 7,885,880 ENERGY - 12.02% - -------------------------------------------------------------------------------- 25,050 Apache Corp. 1,709,661 62,700 Denbury Resources, Inc. (1) 1,985,709 28,900 Marathon Oil Corp. 2,407,370 36,220 Nexen, Inc. 2,047,879 78,000 Pioneer Drilling Co. (1) 1,204,320 114,900 Talisman Energy, Inc. 2,008,452 47,700 Whiting Petroleum Corp. (1) 1,997,199 58,588 XTO Energy, Inc. 2,593,691 ---------------- 15,954,281 FINANCIAL SERVICES - 10.18% - -------------------------------------------------------------------------------- 31,000 American Express Co. 1,649,820 17,084 Bear Stearns Cos., Inc. 2,393,127 15,300 Goldman Sachs Group, Inc. 2,301,579 61,800 H&R Block, Inc. 1,474,548 38,500 iStar Financial, Inc., REIT 1,453,375 36,900 Lehman Brothers Holdings, Inc. 2,404,035 28,855 Morgan Stanley 1,823,925 ---------------- 13,500,409 FOOD & BEVERAGE - 2.16% - -------------------------------------------------------------------------------- 52,000 Pepsi Bottling Group, Inc. 1,671,800 100,615 Ryan's Restaurant Group, Inc. (1) 1,198,325 ---------------- 2,870,125 SHARES VALUE (NOTE 1) - -------------------------------------------------------------------------------- INSURANCE - 7.76% - -------------------------------------------------------------------------------- 60,200 Aspen Insurance Holdings, Ltd. $ 1,402,058 39,000 IPC Holdings, Ltd. 961,740 38,450 PMI Group, Inc. (The) 1,714,101 29,500 Radian Group, Inc. 1,822,510 31,200 RenaissanceRe Holdings, Ltd. 1,511,952 29,960 SAFECO Corp. 1,688,246 19,600 XL Capital, Ltd., Class A 1,201,480 ---------------- 10,302,087 MANUFACTURING - 4.65% - -------------------------------------------------------------------------------- 15,700 BorgWarner, Inc. 1,022,070 33,000 Briggs & Stratton Corp. 1,026,630 34,000 Ingersoll-Rand Co., Ltd., Class A 1,454,520 44,775 Lamson & Sessions Co. (1) 1,269,819 47,225 Masco Corp. 1,399,749 ---------------- 6,172,788 PUBLISHING & BROADCASTING - 9.04% - -------------------------------------------------------------------------------- 49,900 Comcast Corp., Class A (1) 1,635,722 26,400 Gannett Co., Inc. 1,476,552 37,500 Lee Enterprises, Inc. 1,010,625 17,164 Liberty Media Corp., Class A (1) 1,437,828 25,100 McClatchy Co., Class A 1,007,012 35,000 McGraw-Hill Cos., Inc. 1,758,050 88,800 News Corp., Class B 1,791,984 2,400 Washington Post Co., Class B 1,872,024 ---------------- 11,989,797 RETAIL - 3.96% - -------------------------------------------------------------------------------- 62,250 American Eagle Outfitters, Inc. 2,118,990 39,500 Ethan Allen Interiors, Inc. 1,443,725 46,200 Federated Department Stores, Inc. 1,690,920 ---------------- 5,253,635 TEXTILES & APPAREL - 1.15% - -------------------------------------------------------------------------------- 41,000 Liz Claiborne, Inc. 1,519,460 TRANSPORTATION - 3.98% - -------------------------------------------------------------------------------- 32,692 Arkansas Best Corp. 1,641,466 73,000 Dryships, Inc. 787,670 70,800 OMI Corp. 1,532,820 31,430 Teekay Shipping Corp. 1,315,031 ---------------- 5,276,987 TOTAL COMMON STOCKS 123,648,856 (Cost $80,985,221) INVESTMENT COMPANY - 6.71% 8,901,791 Dreyfus Cash Management Plus Fund (2) 8,901,791 ---------------- TOTAL INVESTMENT COMPANY (Cost $8,901,791) 8,901,791 ---------------- TOTAL INVESTMENTS - 99.90% 132,550,647 (Cost $89,887,012 *) NET OTHER ASSETS AND LIABILITIES - 0.10% 130,703 ---------------- TOTAL NET ASSETS - 100.00% $ 132,681,350 ================ - -------------------------------------------------------------------------------- (1) Non-income producing. (2) An affiliate of the Custodian. REIT Real Estate Investment Trust SP ADR Sponsored American Depositary Receipt * For Federal income tax purposes, cost is $89,887,012 and appreciation(depreciation) is as follows: Unrealized appreciation: $ 44,795,277 Unrealized depreciation: (2,131,642) ----------------- Net unrealized appreciation: $ 42,663,635 ================= SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 2 DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- S T A T E M E N T O F A S S E T S A N D L I A B I L I T I E S - -------------------------------------------------------------------------------- J U N E 3 0 , 2 0 0 6 ( U N A U D I T E D ) ASSETS: Investments, at cost $ 89,887,012 ================ Investments, at value (Note 1) (See Portfolio of Investments) $ 132,550,647 Dividends receivable 191,112 Receivable for investments sold 105,726 Receivable for shares sold 19,029 Prepaid expenses and other assets 9,643 ---------------- Total assets 132,876,157 ---------------- LIABILITIES: Payable for investments purchased 17,760 Payable for shares redeemed 27,289 Investment advisory fee payable (Note 2) 105,931 Distribution fee payable (Note 2) 11,500 Accrued trustees' fees and expenses (Note 2) 3,090 Accrued expenses and other payables 29,237 ---------------- Total liabilities 194,807 ---------------- NET ASSETS $ 132,681,350 ================ NET ASSETS CONSIST OF: Accumulated undistributed net investment income $ 310,121 Accumulated net realized gain on investments sold 7,149,540 Net unrealized appreciation of investments 42,663,635 Par value (Note 5) 7,109 Paid-in capital 82,550,945 ---------------- NET ASSETS $ 132,681,350 ================ COMPUTATION OF NET ASSET VALUE RETAIL CLASS SHARES: Net asset value, offering and redemption price per share ($53,578,940 / 2,901,383 shares) (unlimited authorizaton) $ 18.47 ================ INSTITUTIONAL CLASS SHARES: Net asset value, offering and redemption price per share ($79,102,410 / 4,208,081 shares) (unlimited authorizaton) $ 18.80 ================ SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT 3 - -------------------------------------------------------------------------------- S T A T E M E N T O F O P E R A T I O N S - -------------------------------------------------------------------------------- F O R T H E S I X M O N T H S E N D E D J U N E 3 0 , 2 0 0 6 ( U N A U D I T E D ) INVESTMENT INCOME: Dividends $ 1,242,946 Less foreign taxes withheld (16,800) ---------------- Total investment income 1,226,146 ---------------- EXPENSES: Investment advisory fee (Note 2) 653,678 Administration fee (Note 2) 52,583 Transfer agent fees (Note 2) 31,037 Sub-transfer agent fee (Retail Class) (Note 3) 13,732 Custodian fees (Note 2) 11,229 Audit fees 4,000 Legal fees 50,710 Trustees' fees and expenses (Note 2) 9,895 Registration and filing fees 2,519 Reports to shareholders 2,001 Distribution fees (Retail Class) (Note 2) 79,415 Other 5,226 ---------------- Total expenses 916,025 ---------------- NET INVESTMENT INCOME 310,121 ---------------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain from security transactions 5,855,532 Net change in unrealized appreciation of investments 2,144,982 ---------------- Net realized and unrealized gain on investments 8,000,514 ---------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 8,310,635 ================ SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 4 DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- S T A T E M E N T S O F C H A N G E S I N N E T A S S E T S - -------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED JUNE 30, 2006 (UNAUDITED) DECEMBER 31, 2005 ------------------------- ------------------ Net investment income $ 310,121 $ 324,090 Net realized gain from security transactions 5,855,532 7,173,092 Net change in unrealized appreciation of investments 2,144,982 589,180 -------------------- ---------------- Net increase in net assets resulting from operations 8,310,635 8,086,362 Distribution to shareholders from: Retail Shares: Net investment income -- (113,094) Net realized gains on investments -- (3,698,826) -------------------- ---------------- Total distributions -- (3,811,920) Institutional Shares: Net investment income -- (266,899) Net realized gains on investments -- (3,260,607) -------------------- ---------------- Total distributions -- (3,527,506) Total distributions to shareholders -- (7,339,426) -------------------- ---------------- Net increase (decrease) in net assets from fund share transactions (Note 5) (149,109) 2,936,190 -------------------- ---------------- Net increase in net assets 8,161,526 3,683,126 -------------------- ---------------- NET ASSETS: Beginning of period 124,519,824 120,836,698 -------------------- ---------------- End of period (including line A) $ 132,681,350 $ 124,519,824 ==================== ================ (A) Accumulated undistributed net investment income $ 310,121 $ -- ==================== ================ SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT 5 - -------------------------------------------------------------------------------- F I N A N C I A L H I G H L I G H T S - -------------------------------------------------------------------------------- F O R A F U N D S H A R E O U T S T A N D I N G T H R O U G H O U T E A C H P E R I O D RETAIL CLASS SHARES ---------------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED 6/30/2006 ----------------------- FOR THE YEAR ENDED -------------------------- (UNAUDITED) 12/31/2005 12/31/2004 12/31/2003 12/31/2002 12/31/2001 ---------------- ---------- ---------- ---------- ---------- ------------ Net asset value - beginning of period $ 17.32 $ 17.23 $ 15.79 $ 11.91 $ 13.18 $ 13.00 Net investment income (loss) 0.04 0.02 (0.05) (0.03) (0.02) (0.02) Net realized and unrealized gain (loss) on investments 1.11 1.12 2.04 3.91 (1.25) 0.27 ------------ ----------- ----------- ----------- ----------- ------------ Net increase (decrease) in net assets resulting from investment operations 1.15 1.14 1.99 3.88 (1.27) 0.25 Distributions from net investment income -- (0.03) -- -- -- -- Distributions from net realized gains on investments -- (1.02) (0.55) -- -- (0.07) ------------ ----------- ----------- ----------- ----------- ------------ Total distributions -- (1.05) (0.55) -- -- (0.07) Net asset value - end of period $ 18.47 $ 17.32 $ 17.23 $ 15.79 $ 11.91 $ 13.18 ============ =========== =========== =========== =========== ============ Total return (a) 6.64%(b) 6.66% 12.52% 32.58% (9.64)% 1.90% ============ =========== =========== =========== =========== ============ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's) $ 53,579 $ 65,959 $ 65,446 $ 61,197 $ 43,808 $ 44,744 Ratio of net investment income (loss) to average net assets 0.33% 0.13% (0.28)% (0.21)% (0.13)% (0.12)% Ratio of operating expenses to average net assets before fees waived and/or expenses reimbursed by investment adviser and administrator 1.55% 1.57% 1.58% 1.64% 1.63% 1.64% Ratio of operating expenses to average net assets after waivers and/or expense reimbursements 1.55% 1.57% 1.58% 1.64% 1.63% 1.64% Portfolio turnover rate 11%(b) 22% 31% 22% 23% 29% - ---------------------------------------------------------------------------------------------------------------------------------- (a) Total return represents aggregate total return for the period indicated and assumes reinvestment of all distributions. (b) Not Annualized. SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- 6 DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- F I N A N C I A L H I G H L I G H T S - -------------------------------------------------------------------------------- F O R A F U N D S H A R E O U T S T A N D I N G T H R O U G H O U T E A C H P E R I O D INSTITUTIONAL CLASS SHARES ---------------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED 6/30/2006 ----------------------- FOR THE YEAR ENDED -------------------------- (UNAUDITED) 12/31/2005 12/31/2004 12/31/2003 12/31/2002 12/31/2001 ---------------- ---------- ---------- ---------- ---------- ------------ Net asset value - beginning of period $ 17.61 $ 17.49 $ 15.98 $ 12.02 $ 13.26 $ 13.05 Net investment income 0.05 0.07 -- 0.01 0.02 0.02 Net realized and unrealized gain (loss) on investments 1.14 1.15 2.06 3.95 (1.26) 0.26 ------------ ----------- ----------- ----------- ----------- ------------ Net increase (decrease) in net assets resulting from investment operations 1.19 1.22 2.06 3.96 (1.24) 0.28 Distributions from net investment income -- (0.08) -- -- -- -- Distributions from net realized gains on investments -- (1.02) (0.55) -- -- (0.07) ------------ ----------- ----------- ----------- ----------- ------------ Total distributions -- (1.10) (0.55) -- -- (0.07) Net asset value - end of period $ 18.80 $ 17.61 $ 17.49 $ 15.98 $ 12.02 $ 13.26 ============ =========== =========== =========== =========== ============ Total return (a) 6.76%(b) 6.97% 12.87% 32.95% (9.35)% 2.12% ============ =========== =========== =========== =========== ============ RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA: Net assets, end of period (in 000's) $ 79,102 $ 58,561 $ 55,390 $ 45,179 $ 33,596 $ 27,938 Ratio of net investment income to average net assets 0.62% 0.42% 0.02% 0.08% 0.17% 0.18% Ratio of operating expenses to average net assets before fees waived and/or expenses reimbursed by investment adviser and administrator 1.26% 1.28% 1.28% 1.35% 1.33% 1.34% Ratio of operating expenses to average net assets after waivers and/or expense reimbursements 1.26% 1.28% 1.28% 1.35% 1.33% 1.34% Portfolio turnover rate 11%(b) 22% 31% 22% 23% 29% - ---------------------------------------------------------------------------------------------------------------------------------- (a) Total return represents aggregate total return for the period indicated and assumes reinvestment of all distributions. (b) Not Annualized. SEE NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT 7 - -------------------------------------------------------------------------------- N O T E S T O F I N A N C I A L S T A T E M E N T S ( U N A U D I T E D ) - -------------------------------------------------------------------------------- J U N E 3 0 , 2 0 0 6 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES: Kobren Insight Funds (the "Trust") was organized on September 13, 1996, as a Massachusetts business trust. The Trust is registered under the Investment Company Act of 1940, as amended (the "1940 Act"), as a no-load, open-end diversified management investment company. As of June 30, 2006, the Trust offered shares of two funds, Kobren Growth Fund and Delphi Value Fund (the "Funds"). Information presented in these financial statements pertains only to the Delphi Value Fund (the "Fund"). The Fund is authorized to issue two classes of shares - the Retail Class and the Institutional Class. 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. Additionally, the Retail Class is subject to 12b-1 fees and sub-transfer agent fees. The Fund seeks to achieve its investment objective by investing primarily in equity securities of U.S. companies. Investment income, common expenses and realized and unrealized gains and losses are allocated among the share classes of the Fund based on the relative net assets of each class. The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. USE OF ESTIMATES -- The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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. PORTFOLIO VALUATION -- Investment securities are valued at the last sale price on the securities exchange or national securities market on which such securities primarily are traded or for NASDAQ traded securities, the NASDAQ Official Closing Price. Securities not listed on an exchange or national securities market, or securities in which there were no transactions, are valued at the average of the most recent bid and asked prices. Bid price is used when no asked price is available. Short-term securities with remaining maturities of 60 days or less are valued at amortized cost, which approximates market value. Any securities or other assets for which recent market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board of Trustees. DIVIDENDS AND DISTRIBUTIONS -- It is the policy of the Fund to declare and pay dividends from net investment income annually. The Fund will distribute net realized capital gain (including net short-term capital gain), if any, annually, unless offset by any available capital loss carryforward. Additional distributions of net investment income and capital gains for the Fund may be made in order to avoid the application of a 4% non-deductible excise tax on certain undistributed amounts of ordinary income and capital gain. Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. These differences are due primarily to differing treatments of income and gain on various investment securities held by the Fund. The tax character of distributions paid during 2005 and 2004 was as follows: DISTRIBUTIONS PAID IN 2005 DISTRIBUTIONS PAID IN 2004 ------------------------------ -------------------------- ORDINARY LONG-TERM ORDINARY LONG-TERM INCOME CAPITAL GAINS INCOME CAPITAL GAINS ---------- ------------- -------- ------------- Delphi Value Fund $ 320,893 $ 7,018,533 $ -- $ 3,705,405 As of December 31, 2005, the most recent year end, the components of distributable earnings on a tax basis were as follows: CAPITAL LOSS UNDISTRIBUTED UNDISTRIBUTED UNREALIZED CARRYFORWARD ORDINARY INCOME LONG-TERM GAIN APPRECIATION ------------ --------------- -------------- ------------ Delphi Value Fund $ -- $ -- $ 1,294,008 $ 40,518,653 Net investment income and realized gain and loss for federal income tax purposes may differ from that reported in the financial statements because of permanent book and tax basis differences. - -------------------------------------------------------------------------------- 8 DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- N O T E S T O F I N A N C I A L S T A T E M E N T S ( U N A U D I T E D ) - -------------------------------------------------------------------------------- J U N E 3 0 , 2 0 0 6 SECURITIES TRANSACTIONS AND INVESTMENT INCOME -- Securities transactions are recorded on a trade date basis. Realized gain and loss from securities transactions are recorded on the specific identified cost basis. Dividend income is recognized on the ex-dividend date. Dividend income on foreign securities is recognized as soon as the Fund is informed of the ex-dividend date. The Fund estimates the components of distributions received from Real Estate Investment Trusts (REITs). Distributions received in excess of income are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is recognized on the accrual basis. All discounts/premiums are accreted/amortized using the effective yield method. FEDERAL INCOME TAX -- The Fund has qualified and intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, applicable to regulated investment companies, by distributing substantially all of its earnings to its shareholders. Therefore, no federal income or excise tax provision is applicable. EXPENSES -- Expenses of the Trust which are directly identifiable to a specific fund are allocated to that fund. Other expenses of the Trust are allocated between the Funds based upon relative net assets of each Fund. Other expenses of the Trust are allocated equally to those Funds in the Trust. COMMITMENTS AND CONTINGENCIES -- In the normal course of business, the Trust enters into contracts on behalf of the Fund that contain a variety of provisions for general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that are not known at this time. However, based on experience, the Fund believes the risk of loss is remote. 2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE, DISTRIBUTION AND SHAREHOLDER SERVICING FEES AND OTHER RELATED PARTYTRANSACTIONS The Trust has entered into an investment advisory agreement with Kobren Insight Management, Inc. ("KIM"), which was acquired by E*TRADE FINANCIAL Corporation ("E*TRADE FINANCIAL") on November 2, 2005. KIM has engaged Delphi Management, Inc. ("Delphi") as the Fund's sub-adviser. The Advisory Agreement provides that the Fund pays KIM a fee, computed daily and paid monthly, at the annual rate of 1.00% of the Fund's average daily net assets. KIM is solely responsible for the payment of the sub-adviser fee to Delphi. KIM has voluntarily agreed to limit the Fund's total annual operating expenses of the Retail Class and Institutional Class to no more than 1.75% and 1.50%, respectively, of the Fund's average daily net assets. This voluntary agreement may be terminated at the discretion of the Adviser. The Trust has also entered into an administration agreement with PFPC Inc. (the "Administrator"), a member of PNC Financial Services Group, Inc. The Administrator also serves as the Trust's transfer agent and dividend paying agent. Mellon Trust of New England, N.A., an indirectly wholly-owned subsidiary of Mellon Financial Corporation, serves as the Trust's custodian. Prior to November 2, 2005, Kobren Insight Brokerage, Inc. served as distributor of the Fund. As of November 2, 2005, E*TRADE Securities LLC ("E*TRADE Securities"), an affiliate of KIM, serves as distributor of the Fund The Retail Class of the Fund has adopted a Shareholder Servicing and Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the 1940 Act. The Fund pays E*TRADE Securities a monthly 12b-1 fee for distribution services provided, at an annual rate of 0.25% of the average daily net assets attributable to the Retail Class of shares. No officer, director or employee of KIM, E*TRADE FINANCIAL, the Administrator, or any affiliate thereof, receives any compensation from the Trust for serving as a trustee or officer of the Trust. Each trustee who is not an "affiliated person" receives an annual retainer fee of $5,000 plus $1,000 for each board meeting attended and $500 for each committee meeting attended. The Trust also reimburses out-of-pocket expenses incurred by each trustee in attending such meetings. - -------------------------------------------------------------------------------- DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT 9 - -------------------------------------------------------------------------------- N O T E S T O F I N A N C I A L S T A T E M E N T S ( U N A U D I T E D ) - -------------------------------------------------------------------------------- J U N E 3 0 , 2 0 0 6 3. SUB-TRANSFER AGENT FEES The Retail Class of the Fund is subject to sub-transfer agent fees consisting of broker-dealer and fund network fees. The Fund pays participating networks a monthly fee for maintaining shareholder accounts at an annual rate of up to 0.10% of the average daily balances of fund accounts invested through those networks. 4. PURCHASES AND SALES The aggregate amounts of purchases and sales of the Fund's investment securities, other than short-term securities, for the six months ended June 30, 2006, were $ 12,934,404 and $ 15,288,058 of non-governmental issues, respectively. 5. SHARES OF BENEFICIAL INTEREST As of June 30, 2006, an unlimited number of shares of beneficial interest, par value $0.001, was authorized for the Trust. Changes in shares of beneficial interest for the Fund were as follows: SIX MONTHS ENDED YEAR ENDED JUNE 30, 2006 DECEMBER 31, 2005 -------------------------- ------------------------ SHARES AMOUNT SHARES AMOUNT ---------- ------------ -------- ------------ Retail Class: Shares sold 163,923 $ 3,000,944 304,820 $ 5,325,980 Shares issued as reinvestment of distributions -- -- 200,700 3,490,184 Shares redeemed (1,069,816) (19,143,240) (497,504) (8,653,157) ---------- ------------ -------- ------------ Net increase (decrease) (905,893) $(16,142,296) 8,016 $ 163,007 ========== ------------ ======== ------------ Institutional Class: Shares sold 1,084,320 $ 19,743,167 285,805 $ 5,084,300 Shares issued as reinvestment of distributions -- -- 178,630 3,158,174 Shares redeemed (201,363) (3,749,980) (306,176) (5,469,291) ---------- ------------ -------- ------------ Net increase 882,957 15,993,187 158,259 2,773,183 ========== ------------ ======== ------------ Total net increase (decrease) from fund share transactions $ (149,109) $ 2,936,190 ============ ============ At June 30, 2006, KIM, Delphi and their affiliates owned 12,365 Retail Class shares and 630,446 Institutional Class shares of the Fund representing 0.4% and 15.0%, respectively, of the outstanding shares. Discretionary accounts managed by KIM for management clients collectively held 1,820,270 shares of the Institutional Class representing 43.3% of the outstanding shares. 6. SUBSEQUENT EVENT On June 29, 2006, the Kobren Insight Funds' ("KIF") Board of Trustees voted to reorganize Kobren Growth Fund and Delphi Value Fund into two new shell series of the E*TRADE Trust (the "Reorganization"), subject to shareholder approval, before the end of 2006. The two new funds will be substantially similar to the existing KIF and will retain their current Portfolio Managers as well as investment objectives and policies. Shareholders of record will be requested to vote upon the Reorganization pursuant to a proxy statement that describes in more detail the KIF board's deliberations. - -------------------------------------------------------------------------------- 10 DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT - -------------------------------------------------------------------------------- A D D I T I O N A L I N F O R M A T I O N ( U N A U D I T E D ) - -------------------------------------------------------------------------------- J U N E 3 0 , 2 0 0 6 FORM N-Q: The Trust files complete Portfolio of Investments for the Fund with the U.S. Securities and Exchange Commission (the "SEC") for the Trust's first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the SEC's website at www.sec.gov and are available for review and copying at the SEC's Public Reference Room in Washington, D.C. Information on the operations of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. PROXY VOTING: Delphi Value Fund's Proxy Voting Policies and Procedures, used to determine how to vote proxies relating to portfolio securities, are included in the Trust's Statement of Additional Information ("SAI"), and are also available (i) upon request, without charge, by calling 1-800-4KOBREN(800-456-2736);(ii)on Delphi Value Fund'swebsiteatwww.kobren.com;and (iii) on the SEC'swebsiteatwww.sec.gov. Delphi Value Fund's Proxy Voting Record for the most recent twelve-month period ended June 30 is available i) upon request, without charge, by calling 1-800-4KOBREN (800-456-2736); (ii) on Delphi Value Fund's website at www.kobren.com; and (iii) on the SEC's website at www.sec.gov. DISCLOSURE OF FUND EXPENSES: We believe it is important for you to understand the impact of fees regarding your investment. All mutual funds have operating expenses. As a shareholder of a mutual 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 the fund. 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 fees (in dollars) of investing in the 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. This table illustrates the Fund's costs in two ways: ACTUAL FUND RETURN: This section helps you to estimate the actual expenses, after any applicable fee waivers, that you paid over the period. The "Ending Account Value" shown is derived from the Fund's actual return for the past six month period, the "Expense Ratio" column shows the period's annualized expense ratio, and the "Expenses Paid During Period" column shows the dollar amount that would have been paid by an investor who started with $1,000 in the Fund at the beginning of the period. You may use the information here, together with your account value, 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 in the first line under the heading entitled "Expenses Paid During Period." HYPOTHETICAL 5% RETURN: This section is intended to help you compare your Fund's costs with those of other mutual funds. It assumes that the Fund had an annual return of 5% before expenses, but that the expense ratio is unchanged. In this case, because the return used is not the Fund's actual return, the results do not apply to your investment. This example is useful in making comparisons to - -------------------------------------------------------------------------------- DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT 11 - -------------------------------------------------------------------------------- A D D I T I O N A L I N F O R M A T I O N ( U N A U D I T E D ) - -------------------------------------------------------------------------------- J U N E 3 0 , 2 0 0 6 other mutual funds because the SEC requires all mutual funds to calculate expenses based on an assumed 5% annual return. You can assess your Fund's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. Please note that the expense shown in the table are meant to highlight and help you compare your ongoing costs only and do not reflect any transactional costs such as sales charges (loads) and redemption fees, which are described in the Prospectus. If these costs were applied to your account, your costs would be higher. BEGINNING ACCOUNT ENDING ACCOUNT EXPENSE EXPENSES PAID VALUE 01/01/06 VALUE 06/30/06 RATIO(1) DURING PERIOD(2) ----------------- -------------- -------- ---------------- Actual Fund Return Retail Class $ 1,000 $ 1,066.40 1.55% $ 7.94 Institutional Class 1,000 1,067.60 1.26% 6.46 Hypothetical 5% Return Retail Class $ 1,000 $ 1,017.11 1.55% $ 7.75 Institutional Class 1,000 1,018.55 1.26% 6.31 (1) Annualized, based on the Fund's most recent fiscal half-year expenses. (2) 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. - -------------------------------------------------------------------------------- 12 DELPHI VALUE FUND -- 2006 SEMI-ANNUAL REPORT 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. There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or this Item. 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) KOBREN INSIGHT FUNDS -------------------------------------------------------------------- By (Signature and Title)* /S/ ERIC M. KOBREN ------------------------------------------------------- Eric M. Kobren, Chairman & President (principal executive officer) Date August 28, 2006 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /S/ ERIC M. KOBREN ------------------------------------------------------- Eric M. Kobren, Chairman & President (principal executive officer) Date August 28, 2006 ---------------------------------------------------------------------------- By (Signature and Title)* /S/ ERIC J. GODES ------------------------------------------------------- Eric J. Godes, Chief Financial Officer, Vice President, Treasurer & Secretary (principal financial officer) Date August 28, 2006 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature.