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 811-07883
ICON Funds
(Exact name of registrant as specified in charter)
5299 DTC Blvd. Suite 1200 Greenwood Village, CO 80111
(Address of principal executive offices) (Zip code)
Erik L. Jonson 5299 DTC Blvd. Suite 1200 Greenwood Village, CO 80111
(Name and address of agent for service)
Registrant's telephone number, including area code: 303-790-1600
Date of fiscal year end: September 30
Date of reporting period: March 31, 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, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. Section 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
March 31, 2006
(unaudited)
Investment Update
ICON U.S. DIVERSIFIED FUNDS
ICON BOND FUND
ICON CORE EQUITY FUND
ICON COVERED CALL FUND
ICON EQUITY INCOME FUND
ICON LONG/SHORT FUND
Semiannual Report
(ICON FUNDS LOGO)
Table of Contents
<Table>
ABOUT THIS REPORT 2
MESSAGE FROM ICON FUNDS 4
MANAGEMENT OVERVIEWS AND SCHEDULES OF INVESTMENTS
ICON Bond Fund 7
ICON Core Equity Fund 16
ICON Covered Call Fund 26
ICON Equity Income Fund 44
ICON Long/Short Fund 54
SIX MONTH HYPOTHETICAL EXPENSE EXAMPLE 65
FINANCIAL STATEMENTS 69
FINANCIAL HIGHLIGHTS 76
NOTES TO FINANCIAL STATEMENTS 80
OTHER INFORMATION 91
</Table>
[RECYCLE LOGO]
About This Report
HISTORICAL RETURNS
All total returns mentioned in this report account for the change in a Fund's
per-share price, the reinvestment of any dividends and capital gain
distributions, and adjustments for financial statement purposes. If your account
is set up to receive Fund distributions in cash rather than reinvest them, your
actual return may differ from these figures. The Funds' performance results do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or on the redemption of Fund shares. The Adviser reimbursed
certain fees of the Bond Fund, Covered Call Fund, Equity Income Fund and
Long/Short Fund. If not for these reimbursements, performance would have been
lower.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance results represent
past performance, and current performance may be higher or lower. Please call
1-800-764-0442 or visit www.iconadvisers.com for performance results current to
the most recent month-end.
PORTFOLIO DATA
This report reflects ICON's views, opinions, and portfolio holdings as of March
31, 2006, the end of the reporting period. The information is not a complete
analysis of every aspect of any sector, industry, security or the Funds.
Opinions and forecasts regarding industries, companies and/or themes, and
portfolio composition and holdings, are subject to change at any time based on
market and other conditions, and should not be construed as a recommendation of
any specific security. Each Fund's holdings as of March 31, 2006 are included in
each Fund's Schedule of Investments.
Certain companies' stock performance during the period is mentioned throughout
the Management Overviews. While ICON's quantitative investment methodology does
not consider company-specific factors beyond financial data, those factors may
impact a stock's performance, and therefore, Fund performance.
There are risks associated with mutual fund investing, including the risk of
loss of principal. There is no assurance that the investment process will
consistently lead to successful results. An investment concentrated in sectors
and industries may involve greater risk and volatility than a more diversified
investment. There are also risks associated with small- and mid-cap investing,
including limited product lines, less liquidity and small market share.
There are risks associated with selling short, including the risk that the
Long/Short Fund may have to cover its short position at a higher price than the
short price, resulting in a loss. The Fund's loss on a short sale is potentially
unlimited as a loss occurs when the value of a security sold short increases.
Call options involve certain risks, such as limited gains and lack of liquidity
of
2 About This Report
the underlying securities, and are not suitable for all investors. Investments
in foreign securities may entail unique risks, including political, market, and
currency risks.
Investing in fixed income securities such as bonds involves interest rate risk.
When interest rates rise, the value of fixed income securities generally
decreases. The Bond Fund may invest up to 25% of its assets in high-yield bonds
that are below investment grade. High-yield bonds involve a greater risk of
default and price volatility than U.S. Government and other higher-quality
bonds.
ICON'S INVESTMENT APPROACH
The Funds employ an all-cap investment strategy, identifying securities we
believe are underpriced regardless of their location on the conventional style
grid. Our system is not limited by restrictions on market capitalization of
investment style, and searches for potential industry leadership wherever and
whenever it may emerge.
The Funds do not utilize static valuation metrics such as price-to-earnings
(P/E). As we believe these measures do not adequately represent intrinsic value,
which can vary over time. Instead, we calculate proprietary value-to-price (V/P)
ratios that considers the effects of historical and projected earnings,
projected growth, risk and interest rates (opportunity cost). By combined our
determination of value with relative strength (RS), we aim to compute leading
industry themes that are poised, in our view, to outperform the sector
benchmark.
For all corporate earnings and other financial information we rely on the
integrity of the publicaly available financial information provided to the
United States Securities and Exchange Commission.
COMPARATIVE INDEXES
The comparative indexes discussed in this report are meant to provide a basis
for judging the Funds' performance against a specific securities index. Each
index shown accounts for both change in security price and reinvestment of
dividends and distributions, but does not reflect the costs of managing a mutual
fund. The Funds' portfolios may significantly differ in holdings and composition
from the index. Individuals cannot invest directly in an index.
- - The unmanaged Standard & Poor's SuperComposite 1500 (S&P 1500) Index is a
broad-based capitalization-weighted index comprising 1,500 stocks of
large-cap, mid-cap, and small-cap U.S. companies.
- - The Lehman Brothers (LB) U.S. Universal Index represents the union of the
U.S. Aggregate Index, the U.S. High-Yield Corporate Index, the 144A Index,
the Eurodollar Index, the Emerging Markets Index, the non-ERISA portion of
the Commercial Mortgage-Backed Securities (CMBS) Index and the CMBS High-
Yield Index. All securities in this market-value weighted index have at least
one year remaining to maturity and meet certain minimum issue size criteria.
Index returns and statistical data included in this report are provided by
Bloomberg, FactSet Research Systems, and Lehman Brothers.
About This Report 3
Message from ICON Funds
- --------------------------------------------------------------------------------
Conflicting forces convinced many investors that the equity markets were in the
throes of a sideways trading range.
- --------------------------------------------------------------------------------
Dear ICON Shareholder:
Thank you for your continued investment in the ICON U.S. Diversified Funds and
welcome to those of you receiving this report for the first time.
As you may know, ICON employs a value-based, bottom-up investment system in
tactical pursuit of industries we believe are poised to outperform the broader
market. We are quantitative, unemotional and objective, and find strength in
numbers.
Whether you invest in our U.S. Diversified Funds, such as the ICON Core Equity
Fund, our Sector Funds, such as the ICON Energy Fund, or our International
Funds, such as the ICON Asia-Pacific Region Fund, each is powered by ICON's
unique systematic discipline.
A CLASSIC STOCK MARKET BATTLE
"Strength in numbers" is an apt phrase to describe the fiscal six-month period,
as conflicting forces convinced many investors that the equity markets were in
the throes of a sideways trading range. The fact is stocks rallied nicely amid a
mid-October dip and lackluster year-end finish. Despite posting solid gains
against a backdrop of widespread guessing and reacting, the move up was
stealth-like, so quiet that the word "rally" was conspicuous by its absence.
Much of the guessing was focused on the likelihood of continued monetary
tightening and future policy direction under new Federal Reserve Chairman Ben
Bernanke. At the same time, investors reacted strongly to movements in energy
prices, even though we had not seen appreciable increases in inflation or
long-term interest rates.
What we did see was a classic stock market battle that periodically pits
prosperity and healthy corporate earnings against higher interest rates. Over
the past few years, many market observers feared that events such as terrorism,
war, hurricanes and rising oil prices would stall the economy. However, as
investors realized that economic prosperity and higher earnings defied these
even-related concerns, stocks prices have trended higher.
RACING TO CATCH UP WITH VALUE
While stock prices have continued to move higher, we believe recent uptrends in
long-term interest rates have acted as a drag on the stock market, inhibiting
the normal growth of equity valuations. Although the rise in AAA bond yields has
been modest compared to the dramatic increases in the federal funds rate,
intrinsic value has declined according to our system.
Although further monetary tightening remains a distinct possibility, our system
is designed in such a way that we do not have to "guess the Fed" or predict the
4 Message from ICON Funds
We find strength in numbers, reflecting the fact
that we are quantitative, unemotional and objective.
(CRAIG T. CALLAHAN PHOTO)
Craig T. Callahan
President
future. We simply have to recognize underpricing and overpricing when either
condition occurs. While interest rate factors have cut into equity valuations,
we believe these effects have been offset by rising earnings. Should conditions
change, and value no longer supports higher equity prices, stocks could be
viewed as overpriced and call for a more cautious stance on our part.
- --------------------------------------------------------------------------------
We believe recent uptrends in long-term interest rates have acted as a drag on
the stock market, inhibiting the normal growth of equity valuations.
- --------------------------------------------------------------------------------
To date, this has not come to pass, and we continue to view stock prices, in
general, to be below our estimate of intrinsic value. As long as this is the
case, we will continue to ride out the volatility, enabling investors to
participate in what are typically unpredictable market advances, where price
races to catch up with value.
Meanwhile, we believe that higher short-term interest rates and "Fed guessing"
have dampened the attractiveness of bonds. Our system currently views long-term
government bonds as overpriced and long-term corporate bonds as fairly valued,
with yields inching higher, relative strength has weakened accordingly. Thus, we
continue to reduce duration by selling longer maturities and purchasing shorter
maturities, which has helped us avoid the negative effects of a seesaw rise in
yields. The environment remains challenging, and we are flexibly positioned
should conditions change.
BULLISH POSTURE PROVED CORRECT
It is our contention that investors have been continually fooled on the upside
by the prosperity of cyclical companies. We have seen these industry and sector
themes remain in place for the past three years, and this most recent reporting
period was no exception. Industries in economically sensitive areas such as
Energy, Materials, Industrials, and Information Technology led the way, while
industries in the more defensive-oriented Utilities, Healthcare and Consumer
Staples sectors lagged their cyclical peers.
Given the consistently strong relative performance of the ICON Sector Funds,
this comes as no surprise to us. Based on valuation, our bullish, fully invested
posture proved to be absolutely correct, and we are pleased to have shared this
success with you.
Message from ICON Funds 5
Message from ICON Funds (continued)
- --------------------------------------------------------------------------------
Based on valuation, our bullish, fully invested posture proved to be absolutely
correct.
- --------------------------------------------------------------------------------
Still, it is important to remember that value is never stagnant. Value moves as
earnings grow, and so far robust earnings growth has won the battle versus
rising interest rates. Whether this continues to be the case is not something we
choose to predict. We remain highly confident, however, in the ability of our
system to identify theme changes when and if they occur.
In closing, we are most grateful for the privilege of guiding you through these
challenging markets. For current market updates, as well as up-to-date Fund
performance and account information, we invite you to visit our website at
www.iconadvisers.com.
Yours truly,
/s/ Craig T. Callahan
Craig T. Callahan, DBA
Chairman of the Board of Trustees and President of the Adviser
Consider the investment objectives, risks, charges, expenses, and share classes
of each ICON Fund carefully before investing. The prospectus contains this and
other information about the Funds and is available by visiting
www.iconadvisers.com or calling 1-800-764-0442. Please read the prospectus
carefully before investing.
An investment in a non-diversified sector fund or region fund may involve
greater risk and volatility than a more diversified fund. Investments in foreign
securities may entail unique risks, including political, market, and currency
risks. The ICON system relies on the integrity of financial statements released
to the market as part of our analysis.
6 Message from ICON Funds
Management Overview
ICON Bond Fund
- --------------------------------------------------------------------------------
PORTFOLIO COMPOSITION
March 31, 2006
Corporate Bonds 67.2%
Investment Grade 48.4%
Non-Investment Grade 18.8%
U.S. Governments and Agencies 27.6%
Foreign Government Bonds 2.4%
Short-Term Investments 2.9%
Percentages are based upon net assets.
PORTFOLIO HIGHLIGHTS
March 31, 2006
Number of Bonds(1) 124
Weighted average
maturity(1) 3.3 Years
Weighted average
duration(1) 2.2 Years
30-Day SEC Yield
(after expense
limitation) - Class I 4.64%
30-Day SEC Yield
(before expense
limitation) - Class I 4.53%
Yield is for the Fund's Class I shares.
Yield for the Fund's other share classes will vary due to differences in charges
and expenses.
(1) Excludes cash and cash equivalents.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARK?
A. For the six-month period ended March 31, 2006, the ICON Bond Fund returned
0.02% for Class I shares, -0.28% for Class C shares and 0.16% for Class Z
shares, underperforming the 0.29% return of the Lehman Brothers U.S.
Universal Index, the Fund's benchmark, over the same period. Total returns
for other periods as of March 31, 2006 appear on page 11.
Q. WHICH MARKET FACTORS INFLUENCED THE FUND'S RELATIVE PERFORMANCE?
A. The Federal Reserve remained concerned with inflation, surprising many "one
and done" speculators by raising the target federal funds rate four times
over the course of the period. In his first meeting as Fed chairman, Ben
Bernanke maintained existing Fed policy, while leaving the door open for
further policy firming. Meanwhile, speculation over when the Fed would cease
monetary tightening led to a seesaw rise in long-term rates. Although the
yield curve remained relatively flat, it experienced its share of volatility,
inverting several times throughout the period.
Against this backdrop, the past six months were difficult for bonds, as
reflected in the Fund's overall performance. Our bond model indicated little
reason to own longer-dated maturities, which are more sensitive to rising
interest rates. Thus, the Fund systematically reduced duration by eliminating
longer maturities and increasing shorter-dated issues, lowering the
portfolio's weighted average duration from 5.7 years to 2.7 years by
period-end. This reduction helped the Fund avoid some, but not all, of the
negative effects associated with rising long-term rates.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Given a generally challenging environment for bonds, characterized by rising
long-term rates and a relatively flat yield curve, longer-duration bonds
underperformed shorter-term issues. While the Fund does not invest based on
projected interest rate movements, net duration was steadily reduced during
the period, as our value-driven analysis favored opportunities at the short
end of the yield curve. As a result, the Fund's weighting in issues with
maturities of less than one year more than doubled during the period, rising
to 52% from 25%. The Fund's overall reduction in duration helped it avoid
much of the pain associated with rising long-term rates, as evidenced by the
-2.02% six-month total return recorded by the 10-year U.S. Treasury.
Management Overview 7
Management Overview (continued)
ICON Bond Fund
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE BOND MARKET?
A. At period-end, we had witnessed a slightly steeper yield curve along with a
rise in long-term rates. However, we do not currently view long-term bonds as
attractive. Our analysis continues to show government bonds with maturities
beyond the 10-year U.S. Treasury as unattractive based on value and relative
strength. While rising long-term yields have increased value in this area
slightly, relative strength has weakened accordingly.
That said, we continue to reduce the Fund's duration by selling remaining
longer-dated issues and adding to our portfolio of short-term liquid
maturities. We believe this tilt is well positioned for the current market
environment, offering considerable flexibility should new leadership emerge.
8 Management Overview
[TODD BURCHETT PHOTO]
Todd Burchett
Portfolio Manager
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - Given a generally challenging environment for bonds, with rising long-term
rates and a relatively flat yield curve, longer-duration bonds underperformed
shorter-term issues.
- - The Fund's net duration was steadily reduced during the period, as our
value-driven analysis favored shorter-maturity opportunities.
Management Overview 9
Management Overview (continued)
ICON Bond Fund
TOP 10 BOND HOLDINGS
March 31, 2006
<Table>
DaimlerChrysler NA Holding, 6.40%, 5/15/06 3.3%
U.S. Treasury, 2.00%, 5/15/2006 3.0%
U.S. Treasury, 2.63%, 11/15/2006 2.9%
U.S. Treasury, 3.99%, 4/13/2006 2.4%
Household Financial Corp., 5.75%, 1/30/07 2.3%
Keycorp, 2.75%, 2/27/07 2.0%
U.S. Treasury, 3.50%, 11/15/06 1.8%
Federal Home Loan Mortgage Corp. (FHLMC), 5.05%, 2/28/13 1.7%
Federal Home Loan Mortgage Corp. (FHLMC), 5.16%, 2/27/15 1.7%
Federal National Mortgage Association (FNMA), 5.00%, 3/9/15 1.7%
</Table>
Percentages are based upon net assets.
CREDIT QUALITY DIVERSIFICATION
March 31, 2006
<Table>
Aaa 29.2%
Aa1 1.6%
Aa2 0.2%
Aa3 5.4%
A1 7.7%
A2 7.1%
A3 12.7%
Baa1 2.9%
Baa2 4.1%
Baa3 7.6%
Ba1 4.7%
Ba2 4.1%
Ba3 4.0%
B1 1.6%
B2 2.7%
B3 1.6%
</Table>
Percentages based on total investments less short-term investments.
Ratings based on Moody's.
10 Management Overview
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
INCEPTION SINCE
DATE 6 MONTH* 1 YEAR 5 YEARS INCEPTION
- ---------------------------------------------------------------------------------------------
ICON Bond Fund - Class I 9/30/02 0.02% 1.11% N/A 4.15%
- ---------------------------------------------------------------------------------------------
Lehman Brothers U.S.
Universal Index 0.29% 2.95% N/A 4.33%
- ---------------------------------------------------------------------------------------------
ICON Bond Fund - Class C 10/21/02 -0.28% 0.48% N/A 4.28%
- ---------------------------------------------------------------------------------------------
Lehman Brothers U.S.
Universal Index 0.29% 2.95% N/A 4.98%
- ---------------------------------------------------------------------------------------------
ICON Bond Fund - Class Z 5/6/04 0.16% 1.24% N/A 3.04%
- ---------------------------------------------------------------------------------------------
Lehman Brothers U.S.
Universal Index 0.29% 2.95% N/A 4.20%
- ---------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
The Adviser has agreed to limit certain Fund expenses; without these
limitations, returns would have been lower. The limitation provisions may be
terminated in the future. Class Z shares are available only to institutional
investors.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[BAR CHART]
<Table>
<Caption>
LEHMAN BROTHERS U.S. UNIVERSAL
ICON BOND FUND - CLASS I INDEX
------------------------ ------------------------------
9/30/02 10000.00 10000.00
10053.00 10200.00
3/31/03 10245.00 10385.00
10854.00 10706.00
10820.00 10714.00
11070.00 10795.00
3/31/04 11422.00 11083.00
10984.00 10812.00
11406.00 11186.00
11527.00 11330.00
3/31/05 11404.00 11266.00
11744.00 11615.00
11528.00 11565.00
11510.00 11639.00
3/31/06 11531.00 11599.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund's Class I shares on the Class' inception
date of 9/30/02 to a $10,000 investment made in an unmanaged securities index on
that date. Performance for the Fund's other share classes will vary due to
differences in charges and expenses. The Fund's performance in this chart and
the performance table assumes the reinvestment of dividends and capital gain
distributions but does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or on the redemption of Fund shares.
Management Overview 11
Schedule of Investments
ICON Bond Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
CORPORATE BONDS 67.2%
$ 200,000 Ace Capital Trust
II,
9.70%, 04-01-30 $ 266,319
220,000 Ace INA Holdings,
Inc.,
8.88%, 08-15-29 277,920
400,000 AFC Capital Trust
I,
8.21%, 02-03-27 414,377
1,000,000 AIG International
Lease Finance
Corp.,
5.75%, 02-15-07 1,003,156
868,000 AK Steel Corp.,
7.88%, 02-15-09 872,340
275,000 Allied Waste North
America,
5.75%, 02-15-11 261,938
150,000 Allstate Life
Global Fund,
3.50%, 07-30-07 146,306
112,000 Avnet, Inc.,
8.00%, 11-15-06 113,260
240,000 Axa SA,
8.60%, 12-15-30 306,766
297,000 Calenergy Co.,
Inc.,
7.63%, 10-15-07 306,159
150,000 Caliber System,
7.80%, 08-01-06 150,983
1,000,000 CBS Corp.,
5.63%, 05-01-07 999,407
1,127,000 Chartered
Semiconductor,
5.75%, 08-03-10 1,111,411
304,000 Chase Manhattan
Corp.,
7.25%, 06-01-07 310,149
1,020,000 Cigna Corp.,
8.25%, 01-01-07 1,039,423
450,000 Cincinnati
Financial Corp.,
6.90%, 05-15-28 481,242
410,000 CNA Financial
Corp.,
6.60%, 12-15-08 420,713
250,000 CNA Financial
Corp.,
7.25%, 11-15-23 262,177
400,000 Comcast Cable
Communications,
8.88%, 05-01-17 475,116
360,000 Corestates Capital
WB,
6.75%, 11-15-06 362,336
</Table>
<Table>
<Caption>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
$ 700,000 Countrywide Home
Loan,
5.50%, 02-01-07 $ 700,590
1,000,000 Countrywide Home
Loan,
4.13%, 09-15-09 955,825
114,000 Cox
Communications,
Inc.,
7.63%, 06-15-25 121,569
100,000 D.R. Horton, Inc.,
8.00%, 02-01-09 105,411
2,750,000 DaimlerChrysler NA
Holding,
6.40%, 05-15-06 2,753,870
250,000 DaimlerChrysler NA
Holding,
7.38%, 09-15-06 252,156
470,000 DaimlerChrysler NA
Holding,
4.13%, 03-07-07 464,885
750,000 DaimlerChrysler NA
Holding,
4.75%, 01-15-08 739,801
500,000 DaimlerChrysler NA
Holding,
8.00%, 06-15-10 537,872
500,000 DaimlerChrysler NA
Holding,
8.50%, 01-18-31 584,941
260,000 Dillards, Inc.,
9.50%, 09-01-09 278,850
1,155,000 Eastman Kodak Co.,
6.38%, 06-15-06 1,155,493
750,000 Embratel,
11.00%, 12-15-08 834,375
589,000 Fairfax Financial
Holdings,
7.75%, 04-26-12 518,320
500,000 Farmers Insurance
Capital Notes*,
7.20%, 07-15-48 496,686
6,000 First American
Financial,
7.55%, 04-01-28 6,445
940,000 First Chicago NBD
Corp.,
7.00%, 10-16-06 947,344
760,000 First Data Corp.,
4.70%, 11-01-06 757,763
1,200,000 Ford Motor Credit
Co.,
6.50%, 01-25-07 1,195,406
</Table>
12 Schedule of Investments
<Table>
<Caption>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
$ 940,000 General Electric
Capital Corp.,
2.80%, 01-15-07 $ 923,417
441,000 General Mills,
Inc.,
2.63%, 10-24-06 433,794
100,000 General Motors
Acceptance Corp.,
4.00%, 05-15-06 99,248
950,000 General Motors
Acceptance Corp.,
4.50%, 07-15-06 941,847
1,000,000 General Motors
Acceptance Corp.,
6.13%, 09-15-06 995,388
1,000,000 General Motors
Acceptance Corp.,
6.13%, 02-01-07 984,563
650,000 GTE Southwest,
Inc.,
6.23%, 01-01-07 653,107
600,000 Halliburton Co.,
6.00%, 08-01-06 600,950
1,028,000 Hilton Hotels
Corp.,
7.95%, 04-15-07 1,050,298
1,950,000 Household
Financial Corp.,
5.75%, 01-30-07 1,958,165
138,000 Household
Financial Corp.,
7.65%, 05-15-07 140,915
670,000 Household
Financial Corp.,
5.88%, 02-01-09 679,320
750,000 IBM Corp.,
2.38%, 11-01-06 738,427
250,000 IBM Corp.,
3.80%, 02-01-08 243,678
725,000 International
Lease Finance
Corp.,
2.95%, 05-23-06 723,079
1,109,000 International
Lease Finance
Corp.,
5.63%, 06-01-07 1,109,558
450,000 John Hancock*,
7.38%, 02-15-24 513,340
500,000 Johnson Controls,
Inc.,
5.00%, 11-15-06 498,264
50,000 JP Morgan Chase &
Co.,
6.70%, 11-01-07 50,958
455,000 JP Morgan Chase &
Co.,
6.75%, 08-15-08 468,814
</Table>
<Table>
<Caption>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
$ 921,000 Keycorp,
3.05%, 11-22-06 $ 907,261
1,750,000 Keycorp,
2.75%, 02-27-07 1,703,208
1,055,000 Liberty Mutual
Group*,
6.50%, 03-15-35 996,088
430,000 Liberty Mutual
Insurance*,
8.20%, 05-04-07 437,649
250,000 Loews Corp.,
6.75%, 12-15-06 251,582
260,000 Marsh & Mclennan
Cos., Inc.,
5.38%, 03-15-07 259,285
500,000 McDonnell Douglas
Corp.,
6.88%, 11-01-06 503,956
550,000 Mediacom Broadband
LLC,
11.00%, 07-15-13 585,750
288,000 Merck & Co., Inc.,
2.50%, 03-30-07 280,198
500,000 Morgan Stanley,
3.88%, 01-15-09 481,079
1,000,000 National City
Bank,
2.38%, 08-15-06 989,433
400,000 New Jersey Bell
Telephone,
7.85%, 11-15-29 425,388
122,000 NLV Financial
Corp.*,
6.50%, 03-15-35 111,538
929,000 Owens Illinois,
Inc.,
8.10%, 05-15-07 945,258
500,000 Pemex Project
Funding Trust,
8.50%, 02-15-08 524,000
270,000 Phillip Morris
Co., Inc.,
7.20%, 02-01-07 272,718
815,000 Popular NA, Inc.,
6.13%, 10-15-06 818,183
300,000 Private Export
Funding, Series B,
6.49%, 07-15-07 304,652
200,000 Pulte Homes, Inc.,
4.88%, 07-15-09 194,677
350,000 Royal Caribbean
Cruises,
6.75%, 03-15-08 356,169
</Table>
Schedule of Investments 13
Schedule of Investments (continued)
ICON Bond Fund
March 31, 2006(unaudited)
<Table>
<Caption>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
$ 100,000 Sears Roebuck
Acceptance Corp.,
6.70%, 11-15-06 $ 99,734
100,000 Sears Roebuck
Acceptance Corp.,
7.00%, 06-15-07 99,805
382,000 Sears Roebuck
Acceptance Corp.
6.25%, 05-01-09 384,642
213,000 Semco Energy,
Inc.,
6.40%, 11-25-08 205,529
40,000 Suntrust Bank,
2.50%, 11-01-06 39,362
500,000 Target Corp.,
3.38%, 03-01-08 483,003
350,000 Telefonica de
Argentina - YD,
9.13%, 11-07-10 364,875
500,000 Tennessee Gas
Pipeline,
7.00%, 10-15-28 494,294
727,000 Textron Financial
Corp.,
2.75%, 06-01-06 724,498
450,000 Time Warner Cos.,
Inc.,
7.48%, 01-15-08 464,494
630,000 Travelers Property
& Casualty,
6.75%, 11-15-06 632,887
288,000 TRW, Inc.,
6.32%, 05-27-08 289,292
500,000 Tyco
International,
Ltd. - YD,
6.13%, 11-01-08 506,778
155,000 Union Carbide
Corp.,
6.70%, 04-01-09 157,226
250,000 Union Carbide
Corp.,
7.50%, 06-01-25 267,382
550,000 Union Tank Car
Co.,
7.13%, 02-01-07 558,672
410,000 Verizon, Inc.,
8.30%, 08-01-31 456,852
1,312,000 Wells Fargo Co.,
5.90%, 05-21-06 1,313,324
500,000 Wisconsin Power &
Light Co.,
7.00%, 06-15-07 507,773
-----------
TOTAL CORPORATE BONDS
(COST $56,903,150) 56,194,724
</Table>
<Table>
<Caption>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
U.S. GOVERNMENT AND U.S. GOVERNMENT AGENCY
BONDS 27.6%
$ 270,000 Fannie Mae,
3.10%, 07-28-08 $ 258,560
1,500,000 Fannie Mae,
5.00%, 03-09-15 1,442,708
500,000 Fannie Mae,
5.00%, 04-17-15 480,448
1,000,000 Fannie Mae,
5.00%, 07-09-18 935,028
700,000 Federal Farm
Credit Bank,
4.00%, 12-05-06 694,753
255,000 Federal Farm
Credit Bank,
5.90%, 08-04-08 259,704
1,000,000 Federal Home Loan
Bank,
4.00%, 02-12-10 958,399
405,000 Federal Home Loan
Bank,
4.80%, 03-19-13 389,832
750,000 Federal Home Loan
Bank,
5.50%, 02-14-20 714,479
500,000 Federal Home Loan
Bank,
5.50%, 03-03-20 476,415
1,500,000 Federal Home Loan
Mortgage Corp.,
5.05%, 02-28-13 1,462,187
370,000 Federal Home Loan
Mortgage Corp.,
5.00%, 10-29-13 358,693
457,000 Federal Home Loan
Mortgage Corp.,
5.00%, 09-15-14 441,517
1,500,000 Federal Home Loan
Mortgage Corp.,
5.16%, 02-27-15 1,457,833
400,000 Federal Home Loan
Mortgage Corp.,
5.00%, 12-15-15 383,821
550,000 Federal Home Loan
Mortgage Corp.,
5.00%, 09-09-16 524,937
975,000 Federal Home Loan
Mortgage Corp.,
5.25%, 07-27-17 936,598
</Table>
14 Schedule of Investments
<Table>
<Caption>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
$2,000,000 U.S. Treasury
Bill,
3.99%, 04-13-06 $ 1,997,007
500,000 U.S. Treasury
Note,
2.25%, 04-30-06 499,148
2,500,000 U.S. Treasury
Note,
2.00%, 05-15-06 2,491,931
1,000,000 U.S. Treasury
Note,
2.38%, 08-15-06 991,289
1,000,000 U.S. Treasury
Note,
6.50%, 10-15-06 1,008,320
2,440,000 U.S. Treasury
Note,
2.63%, 11-15-06 2,406,640
1,500,000 U.S. Treasury
Note,
3.50%, 11-15-06 1,487,343
-----------
TOTAL U.S. GOVERNMENT AND U.S.
GOVERNMENT AGENCY BONDS (COST
$23,436,353) 23,057,590
FOREIGN GOVERNMENT BOND 2.4%
1,000,000 Federal Republic
Of Brazil - YD,
9.38%, 04-07-08 1,068,500
750,000 Federal Republic
Of Brazil - YD,
14.50%, 10-15-09 960,000
-----------
TOTAL FOREIGN GOVERNMENT BOND
(COST $2,062,500) 2,028,500
</Table>
<Table>
<Caption>
PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
SHORT-TERM INVESTMENTS 2.9%
$2,424,607 Brown Brothers
Harriman Time
Deposit,
4.07%, 04-03-06# $ 2,424,607
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $2,424,607) 2,424,607
TOTAL INVESTMENTS (COST
$84,826,610) 100.1% 83,705,421
LIABILITIES LESS OTHER ASSETS
(0.1)% (72,151)
-----------
TOTAL NET ASSETS 100.0% $83,633,270
===========
</Table>
The accompanying notes are an integral part of the financial statements.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
* Security was acquired pursuant to Rule 144A of the Securities Act of 1933 and
may be deemed to be restricted for resale.
YD Yankee Dollar Bond
Schedule of Investments 15
Management Overview
ICON Core Equity Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 98.5%
Top 10 Equity Holdings 13.6%
Number of Stocks 124
Short-Term Investments 1.4%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Grant Prideco, Inc. 1.5%
MSC Industrial Direct Co., Inc. - Class A 1.5%
America Movil S.A. De C.V. - ADR 1.5%
Aleris International, Inc. 1.4%
Celgene Corp. 1.4%
BHP Billiton, Ltd. - ADR 1.3%
Mylan Laboratories, Inc. 1.3%
CSX Corp. 1.3%
Coldwater Creek, Inc. 1.2%
PSS World Medical, Inc. 1.2%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. For the six-month period ended March 31, 2006, the ICON Core Equity Fund
returned 12.44% for Class I shares, 12.02% for Class C shares and 12.46% for
Class Z shares, outperforming the 7.08% return of the S&P 1500 Index, the
Fund's benchmark, over the same period. Total returns for other periods as of
March 31, 2006 appear on page 22.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. The Fund performed strongly during the period as a valuation-driven tilt
toward cyclical industries, primarily in the Industrials and Materials
sectors, fueled outsized relative returns. While each of the nine economic
sectors we track posted positive results for the period, the top performers
were Industrials and Materials, areas where the Fund was actively
overweighted.
Overall, the Fund maintained exposure to all economic sectors, as valuations
were attractive across a wide spectrum of industries. However, the portfolio
was decidedly underweight the Leisure & Consumer Staples sector as most of
its constituent industries lacked compelling combinations of value and
relative strength. With the sector lagging the broad S&P 1500 Index, the
Fund's underexposure helped drive its relative outperformance.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Underscoring the cyclical nature of the period's rally, primary contributors
to performance included Industrials sector components trading companies &
distributors, construction & farm machinery & heavy trucks, and railroads.
Steel was a major contributor from the Materials sector, while leading
Financials sector industry investment banking & brokerage boosted relative
returns.
Conversely, industries such as managed healthcare, food retail, food
distributors, oil & gas drilling, and oil & gas exploration & production
detracted from Fund performance. Notably, two of these industries were within
the Leisure & Consumer Staples sector, which was deemed out of favor as
investors leaned toward cyclical issues. Minimally negative returns posted by
the two Energy-related industries appeared motivated by investor uncertainty
amid extreme volatility.
16 Management Overview
(ROBERT STRAUS, CMT PHOTO)
Robert Straus, CMT
Portfolio Manager
(J.C. WALLER, III PHOTO)
J.C. Waller, III
Portfolio Manager
(DEREK ROLLINGSON PHOTO)
Derek Rollingson
Portfolio Manager
(TODD BURCHETT PHOTO)
Todd Burchett
Portfolio Manager
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE DOMESTIC EQUITY MARKET?
A. While stocks ended the period trading at a relatively smaller discount to
fair value than when it began, our analysis continues to show some upside
potential in a large number of industries. Moreover, company fundamentals
appear attractive despite ever-present macroeconomic concerns.
Moving ahead, we expect to increase exposure to the Consumer Discretionary
sector. The sector appears to have been out of favor on fears that rising
energy prices would crimp consumer spending. Nevertheless, fundamentals
remain strong and we have yet to see a sustained slowdown in discretionary
buying. Meanwhile, we anticipate continued strength in Materials and
Industrials, although these sectors are now trading close to fair value. As
such, we will carefully monitor our positions and could very well pare back
exposure if valuations become increasingly less attractive.
Management Overview 17
Management Overview (continued)
ICON Core Equity Fund
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - The Fund performed strongly during the period as a valuation-driven tilt
toward cyclical industries, primarily in the Industrials and Materials
sectors, fueled relative performance.
- - Primary industry contributors included trading companies & distributors,
construction & farm machinery & heavy trucks, railroads, steel and investment
banking & brokerage.
- - Meaningful industry detractors included managed healthcare, food retail, food
distributors, oil & gas drilling, and oil & gas exploration & production.
18 Management Overview
SECTOR COMPOSITION
March 31, 2006
<Table>
Industrials 19.2%
Financial 16.5%
Information Technology 14.0%
Consumer Discretionary 13.6%
Healthcare 12.1%
Materials 9.7%
Energy 9.1%
Telecommunication and Utilities 2.4%
Leisure and Consumer Staples 1.9%
</Table>
Percentages are based upon net assets.
Management Overview 19
Management Overview (continued)
ICON Core Equity Fund
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Pharmaceuticals 4.9%
Health Care Distributors 4.5%
Oil & Gas Equipment & Services 4.1%
Apparel Retail 4.0%
Oil & Gas Drilling 3.9%
Trading Companies & Distributors 3.1%
Semiconductors 3.0%
Trucking 2.9%
Computer Storage & Peripherals 2.7%
Aluminum 2.5%
Asset Management & Custody Banks 2.5%
Railroads 2.5%
Investment Banking & Brokerage 2.3%
Thrifts & Mortgage Insurance 2.3%
Air Freight & Logistics 2.1%
Airlines 2.0%
Construction & Farm Machinery & Heavy Trucks 2.0%
Home Furnishings 2.0%
Communications Equipment 1.9%
Construction Materials 1.9%
Steel 1.8%
Building Products 1.7%
Catalog Retail 1.7%
Consumer Finance 1.6%
Wireless Telecommunication Services 1.5%
Auto Parts & Equipment 1.4%
Biotechnology 1.4%
Data Processing & Outsourced Services 1.4%
Fertilizers & Agricultural Chemicals 1.4%
Specialized Finance 1.4%
Diversified Metals & Mining 1.3%
Internet Software Services 1.3%
</Table>
20 Management Overview
INDUSTRY COMPOSITION (CONTINUED)
<Table>
March 31, 2006
Multi-Line Insurance 1.3%
Computer Hardware 1.2%
IT Consulting & Other Services 1.2%
Oil & Gas Exploration & Production 1.1%
Other Diversified Financial Services 1.1%
Automotive Retail 1.0%
Consumer Electronics 1.0%
General Merchandise Stores 1.0%
Human Resource & Employment Services 1.0%
Automobile Manufacturers 0.9%
Diversified Banks 0.9%
Electronic Equipment Manufacturers 0.9%
Life & Health Insurance 0.9%
Marine 0.8%
Metal & Glass Containers 0.8%
Mortgage REITS 0.8%
Regional Banks 0.8%
Life Sciences Tools & Services 0.7%
Leisure Products 0.7%
Property & Casualty Insurance 0.7%
Aerospace & Defense 0.6%
Household Products 0.6%
Restaurants 0.6%
Electric Utilities 0.5%
Footwear 0.5%
Health Care Services 0.5%
Technology Distributors 0.5%
Integrated Telecommunication Services 0.4%
Electrical Components & Equipment 0.3%
Diversified Commercial & Professional Services 0.2%
</Table>
Management Overview 21
Management Overview (continued)
ICON Core Equity Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
INCEPTION SINCE
DATE 6 MONTH* 1 YEAR 5 YEARS INCEPTION
- ---------------------------------------------------------------------------------------------
ICON Core Equity Fund - Class I 10/12/00 12.44% 22.92% 10.00% 10.68%
- ---------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 2.30%
- ---------------------------------------------------------------------------------------------
ICON Core Equity Fund - Class C 11/28/00 12.02% 21.98% 9.16% 8.86%
- ---------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 2.11%
- ---------------------------------------------------------------------------------------------
ICON Core Equity Fund - Class Z 5/6/04 12.46% 22.51% N/A 19.75%
- ---------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 11.37%
- ---------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
The Since Inception performance results for Class C shares include returns for
certain time periods that were restated as of June 8, 2004. Class Z shares are
available only to institutional investors.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE CHART]
<Table>
<Caption>
ICON CORE EQUITY FUND - CLASS I S&P 1500 INDEX
------------------------------- --------------
10/12/00 10000.00 10000.00
11850.00 10031.00
3/31/01 10810.00 8861.00
12680.00 9444.00
10040.00 8037.00
12456.00 8963.00
3/31/02 13234.00 9049.00
12048.00 7887.00
9717.00 6525.00
9461.00 7054.00
3/31/03 8715.00 6818.00
10515.00 7890.00
11374.00 8135.00
12571.00 9140.00
3/31/04 13001.00 9336.00
13072.00 9498.00
13072.00 9320.00
14556.00 10218.00
3/31/05 14167.00 10015.00
14659.00 10187.00
15487.00 10574.00
15959.00 10798.00
3/31/06 17415.00 11322.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund's Class I shares on the Class' inception
date of 10/12/00 to a $10,000 investment made in an unmanaged securities index
on that date. Performance for the Fund's other share classes will vary due to
differences in charges and expenses. The Fund's performance in this chart and
the performance table assumes the reinvestment of dividends and capital gain
distributions but does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or on the redemption of Fund shares.
22 Management Overview
Schedule of Investments
ICON Core Equity Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
COMMON STOCKS (98.5%)
28,800 Accredited Home
Lenders Holding
Co.(a) $ 1,473,984
64,600 Agrium, Inc. -
ADR 1,631,796
76,000 Alcoa, Inc. 2,322,560
63,800 Aleris
International,
Inc.(a) 3,066,866
89,900 America Movil
S.A. De C.V. -
ADR 3,079,974
34,700 American
Financial Group,
Inc. 1,443,867
36,100 Ameriprise
Financial, Inc. 1,626,666
53,000 AmerisourceBergen
Corp. 2,558,310
55,000 AMR Corp.(a) 1,487,750
22,600 Apple Computer,
Inc.(a) 1,417,472
24,600 Arkansas Best
Corp. 962,352
35,700 Arrow
Electronics,
Inc.(a) 1,152,039
29,100 AT&T, Inc. 786,864
62,200 AU Optronics
Corp. - ADR 927,402
10,300 AutoZone, Inc.(a) 1,026,807
25,700 Avid Technology,
Inc.(a) 1,116,922
36,700 Barr
Pharmaceuticals,
Inc.(a) 2,311,366
70,950 BHP Billiton,
Ltd. - ADR 2,827,358
52,100 Boston Private
Financial
Holdings, Inc. 1,760,459
19,700 Caremark Rx,
Inc.(a) 968,846
55,500 Cash America
International,
Inc. 1,666,110
65,200 Celgene Corp.(a) 2,883,144
24,330 Cemex S.A. De
C.V. - ADR 1,588,262
25,500 Central Garden &
Pet Co.(a) 1,355,070
52,300 Christopher &
Banks Corp. 1,213,883
30,800 CIT Group, Inc. 1,648,416
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
93,450 Coldwater Creek,
Inc.(a) $ 2,597,910
32,400 Companhia Vale do
Rio Doce - ADR 1,572,372
22,800 Computer Sciences
Corp.(a) 1,266,540
57,600 Corning, Inc.(a) 1,550,016
44,700 CSX Corp. 2,673,059
21,000 Cummins, Inc. 2,207,100
19,200 Curtiss-Wright
Corp. 1,271,040
20,000 Diamond Offshore
Drilling, Inc. 1,790,000
42,000 Drew Industries,
Inc.(a) 1,493,100
40,500 Eagle Materials,
Inc. 2,582,280
28,700 Eli Lilly & Co. 1,587,110
36,100 ElkCorp 1,218,375
49,600 Ethan Allen
Interiors, Inc. 2,084,192
44,300 Euronet
Worldwide, Inc(a) 1,675,869
78,700 Family Dollar
Stores, Inc. 2,093,420
53,400 Fastenal Co. 2,527,956
14,500 FedEx Corp. 1,637,630
89,800 First Cash
Financial
Services, Inc.(a) 1,795,102
55,200 Forest
Laboratories,
Inc.(a) 2,463,576
10,200 Franklin Electric
Co., Inc. 557,430
83,400 Furniture Brands
International,
Inc. 2,044,134
31,300 GFI Group,
Inc.(a) 1,624,783
20,600 Golden West
Financial Corp. 1,398,740
4,200 Google, Inc. -
Class A(a) 1,638,000
74,400 Grant Prideco,
Inc.(a) 3,187,296
35,000 Griffon Corp.(a) 869,400
38,200 HCC Insurance
Holdings, Inc. 1,329,360
22,300 Healthcare
Services Group,
Inc. 476,328
</Table>
Schedule of Investments 23
Schedule of Investments (continued)
ICON Core Equity Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
32,400 Helmerich &
Payne, Inc. $ 2,262,168
44,500 Henry Schein,
Inc.(a) 2,129,770
59,100 Honda Motor Co.,
Ltd. - ADR 1,829,736
48,900 Hutchinson
Technology,
Inc.(a) 1,475,313
40,700 Investors
Financial
Services Corp. 1,907,609
46,500 J.B. Hunt
Transport
Services, Inc. 1,001,610
24,600 j2 Global
Communications,
Inc.(a) 1,156,200
19,200 Johnson Controls,
Inc. 1,457,856
37,125 Jos. A. Bank
Clothiers,
Inc.(a) 1,780,144
35,700 Joy Global, Inc. 2,133,789
57,800 JPMorgan Chase &
Co. 2,406,792
24,100 Kirby Corp.(a) 1,641,451
22,050 Knight
Transportation,
Inc. 435,488
40,900 Komag, Inc.(a) 1,946,840
48,100 Korea Electric
Power Corp. - ADR 1,038,960
20,400 Marten Transport,
Ltd.(a) 369,036
17,800 Marvell
Technology Group,
Ltd. - ADR(a) 962,980
95,900 Matsushita
Electric
Industrial Co.,
Ltd. - ADR 2,123,226
44,100 McKesson HBOC,
Inc. 2,298,933
46,300 Mellon Financial
Corp. 1,648,280
91,000 Mesa Air Group,
Inc.(a) 1,041,040
45,500 Metrologic
Instruments,
Inc.(a) 1,052,415
41,800 Monster
Worldwide,
Inc.(a) 2,084,148
58,100 MSC Industrial
Direct Co.,
Inc. - Class A 3,138,562
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
112,100 Myers Industries,
Inc. $ 1,792,479
118,300 Mylan
Laboratories,
Inc. 2,768,220
36,900 National-OilWell
Varco, Inc.(a) 2,366,028
34,700 New Century
Financial Corp. 1,596,894
36,200 NICE Systems,
Ltd. - ADR(a) 1,844,752
35,700 Nokia Corp. - ADR 739,704
46,700 Norfolk Southern
Corp. 2,525,069
31,100 O'Reilly
Automotive,
Inc.(a) 1,137,016
76,800 Old Dominion
Freight Line,
Inc.(a) 2,069,760
54,900 optionsXpress
Holdings, Inc. 1,596,492
52,000 Pacer
International,
Inc. 1,699,360
61,300 Pacific Sunwear
of California,
Inc.(a) 1,358,408
59,100 Pfizer, Inc. 1,472,772
45,600 Philadelphia
Consolidated
Holding Corp.(a) 1,556,784
28,900 Portfolio
Recovery
Associates,
Inc.(a) 1,353,387
23,900 Prudential
Financial, Inc. 1,811,859
134,400 PSS World
Medical, Inc.(a) 2,592,576
38,700 Rare Hospitality
International,
Inc.(a) 1,347,921
48,600 Ross Stores,
Inc. 1,418,634
48,400 Rowan Cos., Inc. 2,127,664
22,900 Ryder System,
Inc. 1,025,462
57,500 Satyam Computer
Services, Ltd. -
ADR 2,516,200
33,800 SCP Pool Corp. 1,585,558
90,600 Seagate
Technology 2,385,498
186,800 Siliconware
Precision
Industries Co. -
ADR 1,204,860
</Table>
24 Schedule of Investments
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
33,000 Simpson
Manufacturing
Co., Inc. $ 1,428,900
27,400 SiRF Technology
Holdings, Inc.(a) 970,234
61,000 SkyWest, Inc. 1,785,470
40,900 Steel Dynamics,
Inc. 2,320,257
30,400 Steven Madden,
Ltd. 1,079,200
50,000 Superior Energy
Services, Inc.(a) 1,339,500
133,100 Taiwan
Semiconductor
Manufacturing
Co., Ltd. - ADR 1,338,986
55,100 Texas
Instruments,
Inc. 1,789,097
92,200 The Finish Line,
Inc. 1,516,690
59,400 The Gymboree
Corp.(a) 1,546,776
27,400 The Scotts
Miracle-Gro Co. 1,253,824
38,200 The Sportsman's
Guide, Inc.(a) 1,011,918
41,500 Thermo Electron
Corp.(a) 1,539,235
110,000 TradeStation
Group, Inc.(a) 1,520,200
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
35,800 Ultra Petroleum
Corp.(a) $ 2,230,698
37,200 Unit Corp.(a) 2,073,900
31,500 UTI Worldwide,
Inc. - ADR 995,400
32,200 Wachovia Corp. 1,804,810
44,600 Washington
Mutual, Inc. 1,900,852
15,100 Watsco, Inc. 1,072,855
40,000 Weatherford
International,
Ltd.(a) 1,830,000
------------
TOTAL COMMON STOCKS (COST
$174,208,064) 209,081,168
SHORT-TERM INVESTMENTS (1.4%)
2,931,086 Brown Brothers
Harriman Time
Deposit,
4.07%, 04-03-06# 2,931,086
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $2,931,086) 2,931,086
TOTAL INVESTMENTS (COST
$177,139,150) 99.9% 212,012,254
OTHER ASSETS LESS LIABILITIES
0.1% 157,531
------------
TOTAL NET ASSETS 100.0% $212,169,785
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
Schedule of Investments 25
Management Overview
ICON Covered Call Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 104.5%
Top 10 Equity Holdings 15.3%
Number of Stocks 118
Options Purchased
Put Options 1.1%
Number of Securities
on Which Options Have
Been Purchased 1
Short-Term Investments 2.8%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Burlington Northern
Santa Fe Corp. 1.8%
Wesco International, Inc. 1.7%
Companhia Vale do Rio
Doce - ADR 1.7%
Watsco, Inc. 1.6%
JPMorgan Chase & Co. 1.5%
Superior Energy Services, Inc. 1.4%
Ceradyne, Inc. 1.4%
The Goldman Sachs Group, Inc. 1.4%
Eagle Materials, Inc. 1.4%
Ryder System, Inc. 1.4%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. For the six-months ended March 31, 2006, the ICON Covered Call Fund returned
2.99% for Class I shares, 2.69% for Class C shares and 3.13% for Class Z
shares, underperforming the 7.08% return of the S&P 1500 Index, the Fund's
benchmark, over the same period. Total returns for other periods as of March
31, 2006 appear on page 31.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. The Fund was unable to keep pace with its benchmark. With stocks advancing in
broad fashion throughout the period, calls written against the Fund's
underlying securities limited upside potential. Conversely, these same calls
provided protection from a downside turn, reducing the portfolio's volatility
relative to the benchmark.
Option premiums declined slightly during the period, hovering near 15-year
lows as measured by the CBOE Market Volatility Index (VIX), a broad gauge of
expected market volatility. Since lower expectations often result in lower
option premiums, income levels, which were already at a near-term bottom,
further restricted the Fund's return potential.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. From a broad sector perspective, the Industrials and Materials areas were key
contributors to performance, evidenced by leading cyclical themes in the
trading companies & distributors, steel, and railroads industries. Overall,
these value-driven industry tilts proved to be the primary reason for the
Fund's positive performance over the period, yet calls written against the
underlying securities in these industries limited gains. In contrast, the
Energy and Information Technology sectors detracted from Fund performance,
with the semiconductors, oil & gas drilling, and food distributors groups
lagging significantly. Calls written against long securities in these
industries reduced losses experienced by the Fund.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE DOMESTIC EQUITY MARKET?
A. While stocks ended the period trading at relatively smaller discounts to fair
value than where they began, our analysis continues to detect upside
potential. Moreover, company fundamentals appear attractive despite continued
macroeconomic concerns.
Looking ahead, we expect to increase exposure to the Consumer Discretionary
sector, as this is the most undervalued area of the nine we track. The group
appears to have lost favor on fears that rising energy prices would crimp
consumer spending, however, fundamentals remain strong and we have yet to see
a sustained slowdown in discretionary buying. At the same
26 Management Overview
[ROBERT STRAUS, CMT PHOTO]
Robert Straus, CMT
Portfolio Manager
time, we anticipate continued strength in Materials and Industrials, although
these sectors are now trading close to fair value. As such, we will monitor
these positions carefully and could very well pare back exposure if
valuations become increasingly less attractive.
At the same time, we cannot predict if and when historically low option
premiums will revert to more normalized levels. For that reason, we will
monitor premium levels and look to write longer-dated options should
conditions improve.
PERFORMANCE HIGHLIGHTS
- - The Fund's investment strategy hindered relative results, as calls written
against the underlying securities limited upside potential in an upward
market.
- - Option premiums hovered near 15-year lows as measured by the CBOE Market
Volatility Index, leading to restricted income levels and limited return
potential.
- - Industries that contributed to Fund performance included trading companies &
distributors, steel and railroads, while semiconductors, oil & gas drilling
and food distributors detracted from results.
Management Overview 27
Management Overview (continued)
ICON Covered Call Fund
SECTOR COMPOSITION
March 31, 2006
<Table>
Industrials 22.5%
Financial 17.4%
Consumer Discretionary 14.3%
Information Technology 14.3%
Healthcare 11.7%
Materials 10.5%
Energy 8.0%
Telecommunication and Utilities 3.8%
Leisure and Consumer Staples 2.0%
</Table>
Percentages are based upon net assets.
28 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Trading Companies & Distributors 4.5%
Railroads 4.3%
Steel 4.1%
Trucking 3.7%
Apparel Retail 3.6%
Oil & Gas Equipment & Services 3.5%
Computer Storage & Peripherals 3.0%
Oil & Gas Drilling 3.0%
Pharmaceuticals 2.9%
Health Care Distributors 2.8%
Diversified Metals & Mining 2.7%
Investment Banking & Brokerage 2.5%
Home Furnishings 2.4%
Managed Health Care 2.4%
Construction Materials 2.3%
Internet Software Services 2.3%
Air Freight & Logistics 2.2%
Multi-Line Insurance 2.2%
Semiconductors 2.2%
Wireless Telecommunication Services 2.1%
Construction & Farm Machinery & Heavy Trucks 2.0%
Computer Hardware 1.8%
Data Processing & Outsourced Services 1.8%
Consumer Finance 1.7%
Airlines 1.6%
Mortgage REITS 1.6%
Regional Banks 1.6%
Other Diversified Financial Services 1.5%
Property & Casualty Insurance 1.5%
Aerospace & Defense 1.4%
Building Products 1.4%
</Table>
Management Overview 29
Management Overview (continued)
ICON Covered Call Fund
INDUSTRY COMPOSITION (CONTINUED)
<Table>
March 31, 2006
Life & Health Insurance 1.4%
Asset Management & Custody Banks 1.3%
Marine 1.3%
Auto Parts & Equipment 1.2%
Automotive Retail 1.2%
Diversified Banks 1.2%
Health Care Services 1.2%
IT Consulting & Other Services 1.2%
Oil & Gas Exploration & Production 1.2%
Automobile Manufacturers 1.1%
Consumer Electronics 1.1%
Communications Equipment 1.0%
Electric Utilities 1.0%
Technology Distributors 1.0%
Thrifts & Mortgage Insurance 1.0%
Aluminum 0.9%
Education Services 0.9%
General Merchandise Stores 0.9%
Leisure Products 0.8%
Life Sciences Tools & Services 0.8%
Biotechnology 0.7%
Catalog Retail 0.7%
Integrated Telecommunication Services 0.7%
Restaurants 0.7%
Health Care Equipment 0.5%
Home Improvement Retail 0.5%
Household Products 0.5%
Specialty Chemicals 0.5%
Specialty Stores 0.5%
Health Care Facilities 0.4%
Coal & Consumable Fuels 0.3%
Apparel Accessories & Luxury Goods 0.2%
</Table>
30 Management Overview
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
INCEPTION SINCE
DATE 6 MONTH* 1 YEAR 5 YEARS INCEPTION
- ---------------------------------------------------------------------------------------------
ICON Covered Call Fund -
Class I 9/30/02 2.99% 6.92% N/A 13.17%
- ---------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 17.06%
- ---------------------------------------------------------------------------------------------
ICON Covered Call Fund -
Class C 11/21/02 2.69% 6.22% N/A 10.50%
- ---------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 14.01%
- ---------------------------------------------------------------------------------------------
ICON Covered Call Fund -
Class Z 5/6/04 3.13% 7.21% N/A 8.34%
- ---------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 11.37%
- ---------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
The Adviser has agreed to limit certain Fund expenses; without these
limitations, returns would have been lower. The limitation provisions may be
terminated in the future. Class Z shares are available only to institutional
investors.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON COVERED CALL FUND - CLASS I S&P 1500 INDEX
-------------------------------- --------------
9/30/02 10000.00 10000.00
10490.00 10811.00
3/31/03 10050.00 10450.00
11770.00 12093.00
12400.00 12469.00
13541.00 14009.00
3/31/04 13799.00 14308.00
13944.00 14557.00
13706.00 14285.00
14568.00 15661.00
3/31/05 14416.00 15349.00
14470.00 15613.00
14966.00 16206.00
14946.00 16550.00
3/31/06 15414.00 17353.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund's Class I shares on the Class' inception
date of 9/30/02 to a $10,000 investment made in an unmanaged securities index on
that date. Performance for the Fund's other share classes will vary due to
differences in charges and expenses. The Fund's performance in this chart and
the performance table assumes the reinvestment of dividends and capital gain
distributions but does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or on the redemption of Fund shares.
Management Overview 31
Schedule of Investments
ICON Covered Call Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
COMMON STOCKS 104.5%
6,200 A.G. Edwards,
Inc.(x) $ 309,132
9,700 Abercrombie &
Fitch Co.(x) 565,510
5,200 Accredited Home
Lenders Holding
Co.(a)(x) 266,136
15,600 Aetna, Inc.(x) 766,584
10,300 Affiliated
Computer Services,
Inc. - Class
A(a)(x) 614,498
15,700 AK Steel Holding
Corp.(a)(x) 235,500
12,200 Alaska Air Group,
Inc.(a)(x) 432,490
17,600 Alcoa, Inc.(x) 537,856
10,700 Alpharma, Inc. -
Class A(x) 286,974
23,700 America Movil S.A.
De C.V. - ADR(x) 811,962
12,800 American Express
Co.(x) 672,640
15,200 AmerisourceBergen
Corp.(x) 733,704
7,600 Apple Computer,
Inc.(a)(x) 476,672
3,000 AutoZone,
Inc.(a)(x) 299,070
7,700 Barr
Pharmaceuticals,
Inc.(a)(x) 484,946
20,500 BHP Billiton,
Ltd. - ADR(x) 816,925
13,200 Burlington
Northern Santa Fe
Corp.(x) 1,099,955
4,400 Capital One
Financial Corp.(x) 354,288
3,300 Caremark Rx,
Inc.(a)(x) 162,294
9,600 Celgene
Corp.(a)(x) 424,512
8,800 Cemex S.A. De
C.V. - ADR(x) 574,464
17,000 Ceradyne,
Inc.(a)(x) 848,300
21,800 Christopher &
Banks Corp.(x) 505,978
4,100 Chubb Corp.(x) 391,304
5,100 CIGNA Corp.(x) 666,162
12,300 Cognizant
Technology
Solutions
Corp.(a)(x) 731,727
15,600 Coldwater Creek,
Inc.(a)(x) 433,680
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
21,400 Companhia Vale do
Rio Doce - ADR(x) $ 1,038,542
8,400 Computer Sciences
Corp.(a)(x) 466,620
16,500 Cost Plus,
Inc.(a)(x) 282,150
12,000 CSX Corp.(x) 717,600
7,500 Cullen/Frost
Bankers, Inc.(x) 403,125
6,700 Cummins, Inc.(x) 704,170
11,000 Darden
Restaurants,
Inc.(x) 451,330
19,000 Dollar Tree
Stores, Inc.(a)(x) 525,730
13,200 Eagle Materials,
Inc.(x) 841,632
4,100 East-West Bancorp,
Inc.(x) 158,055
13,300 ElkCorp(x) 448,875
5,200 Ethan Allen
Interiors, Inc.(x) 218,504
17,000 Fastenal Co.(x) 804,780
6,700 FedEx Corp.(x) 756,698
9,100 Forest
Laboratories,
Inc.(a)(x) 406,133
7,600 Fossil, Inc.(a)(x) 141,208
2,800 Freeport-McMoran
Copper & Gold,
Inc. - Class B(x) 167,356
30,600 Furniture Brands
International,
Inc.(x) 750,006
1,700 Google, Inc. -
Class A(a)(x) 663,000
6,600 Grant Prideco,
Inc.(a)(x) 282,744
6,100 Harman
International
Industries,
Inc.(x) 677,893
5,100 Helmerich & Payne,
Inc.(x) 356,082
13,200 Henry Schein,
Inc.(a)(x) 631,752
19,600 Hutchinson
Technology,
Inc.(a)(x) 591,332
30,400 Ingram Micro,
Inc.(a)(x) 608,000
7,500 International
Business Machines
Corp.(x) 618,525
33,500 J.B. Hunt
Transport
Services, Inc.(x) 721,590
</Table>
32 Schedule of Investments
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
16,000 j2 Global
Communications,
Inc.()(a)(x) $ 752,000
9,900 Johnson Controls,
Inc.(x) 751,707
21,500 JPMorgan Chase &
Co.(x) 895,260
11,800 Kirby
Corp.()(a)(x) 803,698
32,550 Knight
Transportation,
Inc.(x) 642,863
8,800 Komag,
Inc.()(a)(x) 418,880
26,800 Korea Electric
Power Corp. -
ADR(x) 578,880
10,000 Laureate
Education,
Inc.()(a)(x) 533,800
6,000 Loews Corp.(x) 607,200
7,100 McKesson HBOC,
Inc.(x) 370,123
9,200 MedcoHealth
Solutions,
Inc.()(a)(x) 526,424
19,800 Mesa Air Group,
Inc.()(a)(x) 226,512
8,700 MetLife, Inc.(x) 420,819
5,900 Mohawk Industries,
Inc.()(a)(x) 476,248
15,300 Molecular Devices
Corp.(a)(x) 507,348
5,900 Morgan Stanley(x) 370,638
8,100 Nabors Industries,
Ltd.(a)(x) 579,798
8,300 National-OilWell
Varco, Inc.(a)(x) 532,196
7,800 New Century
Financial Corp.(x) 358,956
12,200 NICE Systems,
Ltd. - ADR(a)(x) 621,712
14,800 Norfolk Southern
Corp.(x) 800,236
18,400 NovaStar
Financial, Inc.(x) 615,296
11,700 O'Reilly
Automotive,
Inc.(a)(x) 427,752
14,100 OM Group,
Inc.(a)(x) 324,300
9,100 Par Pharmaceutical
Cos., Inc.(a)(x) 256,438
3,600 Peabody Energy
Corp.(x) 181,476
5,600 PNC Financial
Services Group,
Inc.(x) 376,936
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
8,400 Polaris
Industries,
Inc.(x) $ 458,304
14,800 PortalPlayer,
Inc.(a)(x) 329,004
5,500 Prudential
Financial, Inc.(x) 416,955
7,800 Psychiatric
Solutions,
Inc.(a)(x) 258,414
3,200 Rio Tinto PLC -
ADR(x) 662,400
26,700 Ross Stores,
Inc.(x) 779,373
18,600 Ryder System,
Inc.(x) 832,908
30,800 Seagate
Technology(x) 810,964
10,500 Selective
Insurance Group,
Inc.(x) 556,500
57,600 Siliconware
Precision
Industries
Co. - ADR(x) 371,520
10,400 SkyWest, Inc.(x) 304,408
7,600 SonoSite,
Inc.(a)(x) 308,864
13,900 Spectrum Brands,
Inc.(a)(x) 301,908
13,500 Steel Dynamics,
Inc.(x) 765,855
17,100 Steel
Technologies,
Inc.(x) 415,530
32,800 Superior Energy
Services,
Inc.(a)(x) 878,712
39,000 Taiwan
Semiconductor
Manufacturing Co.,
Ltd. - ADR(x) 392,340
18,300 Telefonos de
Mexico S.A. de
C.V. - ADR(x) 411,384
7,800 Teva
Pharmaceutical
Industries, Ltd. -
ADR(x) 321,204
10,000 Texas Instruments,
Inc.(x) 324,700
21,900 The Bank of New
York Co., Inc.(x) 789,276
23,500 The Finish Line,
Inc.(x) 386,575
5,400 The Goldman Sachs
Group, Inc.(x) 847,584
8,700 The Hartford
Financial Services
Group, Inc.(x) 700,785
5,700 The Sherwin-
Williams Co.(x) 281,808
9,700 The Toro Co.(x) 463,175
</Table>
Schedule of Investments 33
Schedule of Investments (continued)
ICON Covered Call Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
6,400 Toyota Motor
Corp. - ADR(x) $ 696,960
11,800 Ultra Petroleum
Corp.(a)(x) 735,258
14,900 Unit Corp.(a)(x) 830,675
8,600 United Parcel
Service, Inc. -
Class B(x) 682,668
6,300 Universal Forest
Products, Inc.(x) 399,987
10,700 Vimpel
Communications -
ADR(a)(x) 460,207
10,000 W-H Energy
Services,
Inc.(a)(x) 444,900
13,100 Wachovia Corp.(x) 734,255
8,900 Washington Mutual,
Inc.(x) 379,318
13,700 Watsco, Inc.(x) 973,385
15,500 Wesco
International,
Inc.(a)(x) 1,054,155
-----------
TOTAL COMMON STOCKS
(COST $52,999,583) 63,656,409
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
SHORT-TERM INVESTMENTS 2.8%
1,713,942 Brown Brothers
Harriman Time
Deposit, 4.07%,
04-03-06# $ 1,713,942
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $1,713,942) 1,713,942
PUT OPTIONS PURCHASED 1.1%
2,300 Midcap SPDR Trust
Series 1,
Expiration
September 2006,
Exercise Price
$112.00 661,250
-----------
TOTAL PUT OPTIONS PURCHASED
(COST $823,400) 661,250
TOTAL INVESTMENTS 108.4%
(COST $55,536,925) 66,031,601
LIABILITIES LESS OTHER ASSETS
(8.4)% (5,114,190)
-----------
TOTAL NET ASSETS 100.0% $60,917,411
===========
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
x Portion or all of this security is pledged as collateral for call options
written.
34 Schedule of Investments
Schedule of Written Options
ICON Covered Call Fund
March 31, 2006
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
A.G. Edwards, Inc.
Expiration May 2006
Exercise Price
$45.00 43 $ 22,360
Expiration August
2006 Exercise Price
$45.00 19 11,590
Abercrombie & Fitch &
Co.
Expiration August
2006
Exercise Price
$60.00 65 30,550
Exercise Price
$70.00 16 2,560
Expiration November
2006 Exercise Price
$60.00 16 10,080
Accredited Home Lenders
Holding Co.
Expiration June 2006
Exercise Price
$50.00 36 17,640
Expiration September
2006 Exercise Price
$55.00 16 7,360
Aetna, Inc.
Expiration July 2006
Exercise Price
$52.50 156 27,300
Affiliated Computer
Services,
Inc. - Class A
Expiration April 2006
Exercise Price
$60.00 31 4,263
Expiration July 2006
Exercise Price
$65.00 51 7,268
Expiration October
2006 Exercise Price
$60.00 21 10,080
AK Steel Holding Corp.
Expiration September
2006 Exercise Price
$12.50 157 52,595
Alaska Air Group, Inc.
Expiration April 2006
Exercise Price
$30.00 37 20,720
Exercise Price
$35.00 24 3,360
Expiration October
2006 Exercise Price
$35.00 61 24,705
</Table>
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Alcoa, Inc.
Expiration July 2006
Exercise Price
$30.00 132 $ 28,380
Expiration October
2006 Exercise Price
$30.00 44 12,540
Alpharma, Inc. - Class
A
Expiration September
2006 Exercise Price
$30.00 107 18,993
America Movil S.A. De
C.V. - ADR
Expiration May 2006
Exercise Price
$35.00 119 18,445
Expiration August
2006 Exercise Price
$35.00 118 32,745
American Express Co.
Expiration April 2006
Exercise Price
$52.50 32 2,480
Expiration July 2006
Exercise Price
$55.00 38 4,180
Exercise Price
$57.50 32 1,440
Expiration October
2006 Exercise Price
$55.00 26 5,330
AmerisourceBergen Corp.
Expiration May 2006
Exercise Price
$42.50 23 14,260
Expiration August
2006
Exercise Price
$45.00 56 29,120
Exercise Price
$47.50 73 25,550
Apple Computer, Inc.
Expiration July 2006
Exercise Price
$60.00 19 14,250
Exercise Price
$65.00 46 23,000
Exercise Price
$70.00 11 3,520
</Table>
Schedule of Written Options 35
Schedule of Written Options (continued)
ICON Covered Call Fund
March 31, 2006
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
AutoZone, Inc.
Expiration June 2006
Exercise Price
$95.00 12 $ 9,060
Exercise Price
$100.00 9 3,870
Expiration September
2006 Exercise Price
$110.00 9 2,475
Barr Pharmaceuticals,
Inc.
Expiration May 2006
Exercise Price
$65.00 24 4,260
Expiration August
2006
Exercise Price
$60.00 11 6,985
Exercise Price
$70.00 42 7,665
BHP Billiton,
Ltd. - ADR
Expiration May 2006
Exercise Price
$35.00 61 32,330
Expiration August
2006 Exercise Price
$35.00 62 39,370
Expiration November
2006 Exercise Price
$40.00 82 32,390
Burlington Northern
Santa Fe Corp.
Expiration July 2006
Exercise Price
$80.00 46 32,200
Expiration October
2006
Exercise Price
$75.00 40 49,200
Exercise Price
$85.00 46 28,290
Capital One Financial
Corp.
Expiration September
2006
Exercise Price
$80.00 24 14,160
Exercise Price
$85.00 11 3,740
Exercise Price
$95.00 9 765
Caremark Rx, Inc.
Expiration June 2006
Exercise Price
$50.00 33 6,188
</Table>
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Celgene Corp.
Expiration July 2006
Exercise Price
$32.50 96 $ 124,320
Cemex S.A. De C.V. -
ADR
Expiration July 2006
Exercise Price
$60.00 17 12,240
Exercise Price
$65.00 26 10,660
Expiration October
2006
Exercise Price
$60.00 28 24,360
Exercise Price
$70.00 17 6,290
Ceradyne, Inc.
Expiration June 2006
Exercise Price
$50.00 102 48,450
Expiration September
2006 Exercise Price
$65.00 68 16,150
Christopher & Banks
Corp.
Expiration June 2006
Exercise Price
$20.00 54 20,520
Exercise Price
$22.50 109 23,435
Expiration September
2006 Exercise Price
$25.00 55 10,588
Chubb Corp.
Expiration April 2006
Exercise Price
$95.00 41 7,175
CIGNA Corp.
Expiration July 2006
Exercise Price
$125.00 36 39,960
Exercise Price
$130.00 15 11,925
Cognizant Technology
Solutions Corp.
Expiration July 2006
Exercise Price
$55.00 41 29,315
Exercise Price
$60.00 82 33,210
</Table>
36 Schedule of Written Options
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Coldwater Creek, Inc.
Expiration July 2006
Exercise Price
$22.38 58(+) $ 47,850
Expiration October
2006 Exercise Price
$30.00 69(+) 19,665
Companhia Vale do Rio
Doce - ADR
Expiration June 2006
Exercise Price
$40.00 43 37,625
Expiration September
2006
Exercise Price
$45.00 85 55,250
Exercise Price
$50.00 86 34,400
Computer Sciences Corp.
Expiration June 2006
Exercise Price
$55.00 84 26,880
Cost Plus, Inc.
Expiration May 2006
Exercise Price
$20.00 49 1,225
Expiration November
2006 Exercise Price
$17.50 116 26,970
CSX Corp.
Expiration August
2006
Exercise Price
$55.00 36 24,660
Exercise Price
$60.00 60 21,900
Expiration November
2006 Exercise Price
$65.00 24 6,300
Cullen/Frost Bankers,
Inc.
Expiration April 2006
Exercise Price
$55.00 75 2,438
Cummins, Inc.
Expiration June 2006
Exercise Price
$100.00 21 18,270
Exercise Price
$115.00 19 3,658
Expiration September
2006 Exercise Price
$110.00 27 17,010
</Table>
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Darden Restaurants,
Inc.
Expiration April 2006
Exercise Price
$40.00 110 $ 15,950
Dollar Tree Stores,
Inc.
Expiration August
2006
Exercise Price
$27.50 109 22,073
Exercise Price
$30.00 81 7,493
Eagle Materials, Inc.
Expiration April 2006
Exercise Price
$56.63 20 15,100
Expiration July 2006
Exercise Price
$53.38 66 82,170
Expiration October
2006 Exercise Price
$65.00 46 34,270
East-West Bancorp, Inc.
Expiration July 2006
Exercise Price
$35.00 12 5,340
Expiration October
2006 Exercise Price
$40.00 29 6,670
ElkCorp
Expiration October
2006 Exercise Price
$35.00 133 40,565
Ethan Allen Interiors,
Inc.
Expiration May 2006
Exercise Price
$40.00 36 10,710
Expiration November
2006 Exercise Price
$45.00 16 4,040
Fastenal Co.
Expiration May 2006
Exercise Price
$42.50 76 42,560
Expiration August
2006 Exercise Price
$45.00 60 31,500
Expiration November
2006 Exercise Price
$50.00 34 12,070
FedEx Corp.
Expiration April 2006
Exercise Price
$105.00 47 39,480
Expiration July 2006
Exercise Price
$115.00 20 10,200
</Table>
Schedule of Written Options 37
Schedule of Written Options (continued)
ICON Covered Call Fund
March 31, 2006
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Forest Laboratories,
Inc.
Expiration May 2006
Exercise Price
$45.00 45 $ 9,675
Expiration August
2006
Exercise Price
$45.00 27 10,800
Exercise Price
$50.00 19 3,278
Fossil, Inc.
Expiration September
2006
Exercise Price
$17.50 38 10,640
Exercise Price
$20.00 38 6,270
Freeport-McMoran Copper
& Gold, Inc. - Class
B
Expiration August
2006 Exercise Price
$50.00 28 33,460
Furniture Brands
International, Inc.
Expiration July 2006
Exercise Price
$22.50 123 36,285
Exercise Price
$25.00 183 26,993
Google, Inc. - Class A
Expiration April 2006
Exercise Price
$370.00 3 8,250
Expiration June 2006
Exercise Price
$370.00 9 33,435
Expiration September
2006 Exercise Price
$360.00 5 27,900
Grant Prideco, Inc.
Expiration July 2006
Exercise Price
$40.00 66 36,960
Harman International
Industries, Inc.
Expiration July 2006
Exercise Price
$100.00 31 48,205
Exercise Price
$110.00 15 13,350
Exercise Price
$115.00 15 9,525
</Table>
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Helmerich & Payne, Inc.
Expiration June 2006
Exercise Price
$65.00 10 $ 7,400
Expiration September
2006
Exercise Price
$60.00 12 15,720
Exercise Price
$65.00 20 19,600
Exercise Price
$70.00 9 6,390
Henry Schein, Inc.
Expiration April 2006
Exercise Price
$45.00 26 8,060
Expiration July 2006
Exercise Price
$50.00 106 15,105
Hutchinson Technology,
Inc.
Expiration May 2006
Exercise Price
$30.00 98 17,150
Expiration August
2006 Exercise Price
$25.00 69 43,815
Expiration January
2007 Exercise Price
$35.00 29 6,018
Ingram Micro, Inc.
Expiration September
2006 Exercise Price
$20.00 304 46,360
International Business
Machines Corp.
Expiration April 2006
Exercise Price
$85.00 30 1,875
Expiration July 2006
Exercise Price
$80.00 45 22,275
J.B. Hunt
Transportation
Services, Inc.
Expiration May 2006
Exercise Price
$22.50 135 8,775
Expiration August
2006 Exercise Price
$25.00 200 13,000
</Table>
38 Schedule of Written Options
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
j2 Global
Communications, Inc.
Expiration June 2006
Exercise Price
$40.00 54 $ 44,550
Exercise Price
$45.00 64 29,120
Exercise Price
$50.00 16 3,160
Expiration September
2006 Exercise Price
$45.00 26 15,860
Johnson Controls, Inc.
Expiration April 2006
Exercise Price
$70.00 39 24,765
Expiration July 2006
Exercise Price
$75.00 30 13,200
Expiration October
2006 Exercise Price
$80.00 30 10,350
JPMorgan Chase & Co.
Expiration June 2006
Exercise Price
$40.00 76 17,860
Expiration September
2006 Exercise Price
$42.50 139 21,545
Kirby Corp.
Expiration June 2006
Exercise Price
$60.00 11 10,395
Exercise Price
$65.00 35 19,950
Expiration September
2006
Exercise Price
$60.00 24 26,400
Exercise Price
$65.00 24 18,000
Exercise Price
$70.00 24 12,000
Knight Transportation,
Inc.
Expiration September
2006
Exercise Price
$20.00 163 30,563
Exercise Price
$22.50 162 14,985
</Table>
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Komag, Inc.
Expiration June 2006
Exercise Price
$45.00 42 $ 25,410
Exercise Price
$50.00 14 5,040
Expiration September
2006 Exercise Price
$45.00 32 26,720
Korea Electric Power
Corp. - ADR
Expiration April 2006
Exercise Price
$22.50 78 1,365
Expiration September
2006 Exercise Price
$20.00 95 27,313
Exercise Price
$22.50 95 14,013
Laureate Education,
Inc.
Expiration May 2006
Exercise Price
$55.00 30 4,125
Expiration August
2006
Exercise Price
$50.00 40 22,800
Exercise Price
$55.00 30 8,775
Loews Corp.
Expiration June 2006
Exercise Price
$90.00 30 37,500
Expiration September
2006 Exercise Price
$100.00 30 20,850
McKesson Corp.
Expiration August
2006 Exercise Price
$55.00 71 14,200
MedcoHealth Solutions,
Inc.
Expiration April 2006
Exercise Price
$55.00 37 10,823
Expiration July 2006
Exercise Price
$60.00 37 9,250
Expiration October
2006 Exercise Price
$65.00 18 4,095
Mesa Air Group, Inc.
Expiration September
2006 Exercise Price
$12.50 198 19,800
</Table>
Schedule of Written Options 39
Schedule of Written Options (continued)
ICON Covered Call Fund
March 31, 2006
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
MetLife, Inc.
Expiration June 2006
Exercise Price
$50.00 61 $ 7,015
Expiration September
2006 Exercise Price
$55.00 26 1,755
Mohawk Industries, Inc.
Expiration May 2006
Exercise Price
$90.00 44 880
Expiration August
2006 Exercise Price
$80.00 15 8,400
Molecular Devices Corp.
Expiration July 2006
Exercise Price
$30.00 92 41,400
Exercise Price
$35.00 61 10,218
Morgan Stanley
Expiration July 2006
Exercise Price
$60.00 42 18,900
Expiration October
2006 Exercise Price
$65.00 17 4,973
Nabors Industries, Ltd.
Expiration June 2006
Exercise Price
$65.00 81 72,090
National-OilWell Varco,
Inc.
Expiration May 2006
Exercise Price
$60.00 27 16,740
Expiration August
2006 Exercise Price
$65.00 56 33,880
New Century Financial
Corp.
Expiration August
2006 Exercise Price
$45.00 78 36,660
NICE Systems,
Ltd. - ADR
Expiration August
2006
Exercise Price
$50.00 51 24,225
Exercise Price
$55.00 71 18,638
</Table>
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Norfolk Southern Corp.
Expiration June 2006
Exercise Price
$50.00 59 $ 31,270
Expiration September
2006 Exercise Price
$55.00 59 21,830
Expiration January
2007 Exercise Price
$60.00 30 9,900
Novastar Financial,
Inc.
Expiration June 2006
Exercise Price
$30.00 133 51,205
Expiration September
2006 Exercise Price
$25.00 51 43,095
O'Reilly Automotive,
Inc.
Expiration August
2006
Exercise Price
$35.00 76 26,980
Exercise Price
$40.00 41 5,125
OM Group, Inc.
Expiration June 2006
Exercise Price
$20.00 113 41,810
Expiration September
2006 Exercise Price
$25.00 28 5,530
Par Pharmaceutical
Cos., Inc.
Expiration May 2006
Exercise Price
$30.00 32 4,400
Expiration August
2006
Exercise Price
$25.00 46 23,000
Exercise Price
$35.00 13 1,333
Peabody Energy Corp.
Expiration June 2006
Exercise Price
$45.00 18 12,870
Exercise Price
$50.00 18 7,200
PNC Financial Services
Group, Inc.
Expiration May 2006
Exercise Price
$70.00 45 3,600
Expiration August
2006 Exercise Price
$70.00 11 2,173
</Table>
40 Schedule of Written Options
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Polaris Industries,
Inc.
Expiration June 2006
Exercise Price
$50.00 29 $ 16,530
Expiration September
2006 Exercise Price
$55.00 55 22,825
PortalPlayer, Inc.
Expiration May 2006
Exercise Price
$22.50 21 3,780
Exercise Price
$25.00 53 4,903
Expiration August
2006 Exercise Price
$30.00 22 1,925
Expiration November
2006
Exercise Price
$22.50 15 5,850
Exercise Price
$25.00 37 10,823
Prudential Financial,
Inc.
Expiration June 2006
Exercise Price
$75.00 28 9,520
Exercise Price
$80.00 16 1,760
Expiration September
2006 Exercise Price
$80.00 11 3,025
Psychiatric Solutions,
Inc.
Expiration June 2006
Exercise Price
$30.00 30 13,050
Expiration September
2006
Exercise Price
$30.00 28 14,840
Exercise Price
$35.00 20 5,350
Rio Tinto PLC - ADR
Expiration July 2006
Exercise Price
$195.00 10 21,250
Exercise Price
$200.00 7 12,635
Expiration October
2006 Exercise Price
$180.00 15 52,800
Ross Stores, Inc.
Expiration May 2006
Exercise Price
$30.00 267 22,028
</Table>
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Ryder System, Inc.
Expiration May 2006
Exercise Price
$42.50 93 $ 31,155
Expiration August
2006
Exercise Price
$45.00 45 14,400
Exercise Price
$47.50 48 9,960
Seagate Technology
Expiration June 2006
Exercise Price
$25.00 108 26,730
Expiration September
2006
Exercise Price
$25.00 123 41,820
Exercise Price
$30.00 77 10,203
Selective Insurance
Group, Inc.
Expiration June 2006
Exercise Price
$55.00 38 6,365
Expiration September
2006
Exercise Price
$55.00 46 12,650
Exercise Price
$60.00 21 2,363
Siliconware Precision
Industries,
Inc. - ADR
Expiration September
2006 Exercise Price
$7.50 576 33,120
SkyWest, Inc.
Expiration April 2006
Exercise Price
$30.00 26 1,560
Expiration July 2006
Exercise Price
$25.00 26 13,650
Exercise Price
$30.00 52 11,310
SonoSite, Inc.
Expiration June 2006
Exercise Price
$35.00 30 19,650
Exercise Price
$40.00 46 13,340
Spectrum Brands, Inc.
Expiration September
2006 Exercise Price
$22.50 139 29,885
</Table>
Schedule of Written Options 41
Schedule of Written Options (continued)
ICON Covered Call Fund
March 31, 2006
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Steel Dynamics, Inc.
Expiration August
2006 Exercise Price
$50.00 135 $ 139,725
Steel Technologies,
Inc.
Expiration July 2006
Exercise Price
$25.00 136 28,560
Exercise Price
$30.00 35 2,363
Superior Energy
Services, Inc.
Expiration June 2006
Exercise Price
$22.50 98 46,550
Exercise Price
$25.00 164 47,970
Expiration September
2006 Exercise Price
$25.00 66 25,410
Taiwan Semiconductor
Manufacturing Co.,
Ltd. - ADR
Expiration April 2006
Exercise Price
$10.00 390 11,700
Telefonos de Mexico
S.A. de C.V. - ADR
Expiration May 2006
Exercise Price
$22.50 135 12,150
Expiration August
2006 Exercise Price
$25.00 48 2,400
Teva Pharmaceutical
Industries,
Ltd. - ADR
Expiration June 2006
Exercise Price
$42.50 43 6,020
Expiration September
2006 Exercise Price
$45.00 35 5,425
Texas Instruments, Inc.
Expiration April 2006
Exercise Price
$30.00 50 13,750
Expiration July 2006
Exercise Price
$30.00 25 9,500
Exercise Price
$35.00 25 2,875
</Table>
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
The Bank of New York
Co., Inc.
Expiration April 2006
Exercise Price
$35.00 37 $ 5,735
Expiration July 2006
Exercise Price
$35.00 138 31,395
Expiration October
2006 Exercise Price
$37.50 44 6,820
The Finish Line, Inc.
Expiration May 2006
Exercise Price
$17.50 70 2,275
Expiration August
2006 Exercise Price
$20.00 36 990
Expiration November
2006 Exercise Price
$17.50 129 16,448
The Goldman Sachs
Group, Inc.
Expiration July 2006
Exercise Price
$150.00 35 42,700
Exercise Price
$155.00 19 16,910
The Hartford Financial
Services Group, Inc.
Expiration June 2006
Exercise Price
$80.00 43 14,405
Expiration September
2006 Exercise Price
$85.00 44 12,320
The Sherwin-Williams
Co.
Expiration September
2006 Exercise Price
$50.00 11 3,905
Expiration January
2007 Exercise Price
$55.00 46 12,650
The Toro Co.
Expiration June 2006
Exercise Price
$45.00 68 26,520
Expiration September
2006 Exercise Price
$50.00 29 7,105
</Table>
42 Schedule of Written Options
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
Toyota Motor Corp. -
ADR
Expiration July 2006
Exercise Price
$105.00 13 $ 10,595
Exercise Price
$110.00 38 19,380
Exercise Price
$115.00 13 3,835
Ultra Petroleum Corp.
Expiration June 2006
Exercise Price
$55.00 34 32,980
Exercise Price
$60.00 30 19,350
Expiration September
2006 Exercise Price
$50.00 54 84,510
Unit Corp.
Expiration June 2006
Exercise Price
$55.00 97 40,255
Expiration September
2006 Exercise Price
$55.00 52 32,240
United Parcel Service,
Inc. - Class B
Expiration April 2006
Exercise Price
$75.00 43 20,210
Expiration October
2006 Exercise Price
$80.00 43 16,770
Universal Forest
Products, Inc.
Expiration April 2006
Exercise Price
$60.00 38 15,960
Expiration July 2006
Exercise Price
$65.00 25 9,875
Vimpel Communications -
ADR
Expiration April 2006
Exercise Price
$45.00 43 1,613
Expiration October
2006 Exercise Price
$45.00 64 16,000
</Table>
<Table>
<Caption>
UNDERLYING SECURITY/
EXPIRATION DATE/
EXERCISE PRICE CONTRACTS* VALUE
- ------------------------------------------------
W-H Energy Services,
Inc.
Expiration April 2006
Exercise Price
$40.00 34 $ 15,980
Expiration July 2006
Exercise Price
$35.00 33 35,475
Exercise Price
$40.00 33 23,430
Wachovia Corp.
Expiration April 2006
Exercise Price
$55.00 85 14,663
Expiration July 2006
Exercise Price
$55.00 26 7,345
Exercise Price
$57.50 20 2,900
Washington Mutual, Inc.
Expiration July 2006
Exercise Price
$45.00 89 7,120
Watsco, Inc.
Expiration August
2006
Exercise Price
$70.00 89 59,630
Exercise Price
$75.00 48 20,400
Wesco International,
Inc.
Expiration July 2006
Exercise Price
$55.00 30 44,700
Exercise Price
$60.00 47 51,935
Exercise Price
$65.00 62 47,120
Expiration October
2006 Exercise Price
$65.00 16 15,360
----------
Total Option Written
(Premiums received
$4,641,617) 15,198 $5,326,195
==========
</Table>
The accompanying notes are an integral part of this Schedule of Investments.
* All written options have 100 shares per contract unless otherwise noted.
(+) Contracts have 150 shares per contract.
Schedule of Written Options 43
Management Overview
ICON Equity Income Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities
Common Stocks 90.7%
Convertible Preferred Stocks 0.8%
Top 10 Equity Holdings 12.7%
Number of Stocks 101
Options Purchased
Call Options 0.4%
Number of Securities on Which Options Have Been Purchased 7
Bonds & Short-Term Investments
Convertible Corporate Bonds 0.4%
Corporate Bonds 3.6%
U.S. Government and Agencies 3.4%
Short-Term Investments 0.4%
Number of Bonds 13
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
JPMorgan Chase & Co. 1.5%
Altria Group, Inc. 1.3%
Eagle Materials, Inc. 1.3%
Pacer International, Inc. 1.3%
DaimlerChrysler AG - ADR 1.3%
New Century Financial Corp. 1.2%
Lennox International, Inc. 1.2%
Philippine Long Distance Telephone Co. - ADR 1.2%
StarTek, Inc. 1.2%
Diamond Offshore Drilling, Inc. 1.2%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. For the six-month period ended March 31, 2006, the ICON Equity Income Fund
returned 7.49% for Class I shares, 6.97% for Class C shares and 7.43% for
Class Z shares, generally in line with the 7.08% return posted by the S&P
1500 Index, the Fund's benchmark, over the same period. Total returns for
other periods as of March 31, 2006 appear on page 49.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. The Fund kept pace with its equity-centered benchmark despite deriving a
portion of its returns from dividends, coupon payments and synthetic fixed
income investments, an area of the market that experienced difficulty during
the period.
While the Fund maintained equity exposure to all economic sectors throughout
the period, it captured significant upside through a value-driven tilt toward
the top-performing Materials and Industrials groups. However, exposure to
Leisure & Consumer Staples along with a significant weighting in the
Telecommunication & Utilities sector detracted from results. Fixed income
holdings also hampered performance as rising interest rates produced
turbulence within the asset class.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Top sector contributors included the Financials, Materials and Consumer
Discretionary areas, while the Leisure & Consumer Staples and
Telecommunication & Utilities groups hindered Fund results. Notably, because
of the dividend-paying nature of many of the companies within the
Telecommunication & Utilities sector, the Fund generally maintains higher
exposure to this group than other diversified ICON funds.
From an industry perspective, the Fund's focus on economically sensitive
areas such as diversified metals & mining, trading companies & distributors
and construction & farm machinery & heavy trucks enhanced returns.
Conversely, exposure to the more defensively oriented multi-utilities,
managed health care and water utilities industries served to curb returns
while the Fund's fixed income holdings detracted from performance as interest
rates rose.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE DOMESTIC MARKETS?
A. Though stocks ended the period trading at relatively smaller discounts to
fair value, our analysis continues to show upside potential in many
industries. Moreover, company fundamentals appear attractive despite
ever-present macroeconomic concerns.
44 Management Overview
[DEREK ROLLINGSON PHOTO]
Derek Rollingson
Portfolio Manager
Looking ahead, we expect to increase exposure to the Consumer Discretionary
sector, currently the most undervalued of the nine we track. The group
appears to have lost favor on fears that rising energy prices would crimp
consumer spending. Nevertheless, fundamentals remain strong and there has yet
to be a sustained slowdown in discretionary buying. Meanwhile, we anticipate
continued strength in Materials and Industrials, although these sectors are
now trading close to fair value. As such, we will carefully monitor our
positions and could pare back exposure if valuations warrant.
As for the Fund's fixed income exposure, based on current valuation and
relative strength metrics, we expect to remain focused on shorter-duration
securities, as they are less sensitive to interest rate movements and
continue to be more attractive than longer-term issues.
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - The Fund's equity exposure captured upside through a value-driven tilt toward
Materials and Industrials sectors, while exposure to Leisure & Consumer
Staples and Telecommunication & Utilities hindered results.
- - Fixed income holdings hampered performance as rising interest rates produced
turbulence within the asset class.
- - Principal industry contributors included diversified metals & mining, trading
companies & distributors, and construction & farm machinery & heavy trucks,
while multi-utilities, managed health care, and water utilities detracted
from returns.
Management Overview 45
Management Overview (continued)
ICON Equity Income Fund
SECTOR COMPOSITION
March 31, 2006
<Table>
Financial 18.1%
Industrials 16.5%
Consumer Discretionary 13.4%
Materials 11.1%
Information Technology 10.0%
Healthcare 6.9%
Telecommunication and Utilities 5.4%
Energy 5.0%
Leisure and Consumer Staples 4.3%
</Table>
Percentages are based upon common stock positions and net assets.
46 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Integrated Telecommunication Services 3.8%
Home Furnishings 3.5%
Other Diversified Financial Services 3.4%
Investment Banking & Brokerage 3.1%
Construction & Farm Machinery & Heavy Trucks 2.9%
Pharmaceuticals 2.7%
Semiconductors 2.5%
Construction Materials 2.4%
Thrifts & Mortgage Insurance 2.4%
Oil & Gas Drilling 2.3%
Air Freight & Logistics 2.2%
Mortgage REITS 2.2%
Aluminum 2.1%
Building Products 2.1%
Steel 2.1%
Tobacco 2.1%
Diversified Metals & Mining 2.0%
Trading Companies & Distributors 2.0%
Data Processing & Outsourced Services 1.9%
Apparel Retail 1.8%
Asset Management & Custody Banks 1.7%
Health Care Equipment 1.7%
Integrated Oil & Gas 1.5%
Trucking 1.5%
Life & Health Insurance 1.4%
Automobile Manufacturers 1.3%
Health Care Technology 1.2%
Apparel Accessories & Luxury Goods 1.1%
Computer Hardware 1.1%
Electronic Equipment Manufacturers 1.1%
Oil & Gas Equipment & Services 1.1%
Computer Storage & Peripherals 1.0%
Diversified Banks 1.0%
Industrial Machinery 1.0%
Specialized Consumer Services 1.0%
Specialty Chemicals 1.0%
Aerospace & Defense 0.9%
Diversified Commercial & Professional Services 0.9%
</Table>
Management Overview 47
Management Overview (continued)
ICON Equity Income Fund
INDUSTRY COMPOSITION (CONTINUED)
<Table>
March 31, 2006
Electrical Components & Equipment 0.9%
Electronic Manufacturing Services 0.9%
General Merchandise Stores 0.9%
Leisure Products 0.9%
Railroads 0.9%
Retail REITS 0.9%
Auto Parts & Equipment 0.8%
Commodity Chemicals 0.8%
Electric Utilities 0.8%
Fertilizers & Agricultural Chemicals 0.8%
Health Care Distributors 0.8%
Household Appliances 0.8%
Multi-Line Insurance 0.8%
Regional Banks 0.8%
Specialty Stores 0.8%
Tire & Rubber 0.8%
Automotive Retail 0.7%
Commercial Printing 0.7%
Communications Equipment 0.7%
Household Products 0.7%
Multi-Utilities 0.7%
Airlines 0.6%
IT Consulting & Other Services 0.6%
Publishing 0.6%
Health Care Facilities 0.5%
Property & Casualty Insurance 0.5%
</Table>
Percentages are based upon common stock positions and net assets.
48 Management Overview
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
INCEPTION SINCE
DATE 6 MONTH* 1 YEAR 5 YEARS INCEPTION
- ----------------------------------------------------------------------------------------------
ICON Equity Income Fund - Class I 9/30/02 7.49% 14.12% N/A 18.45%
- ----------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 17.06%
- ----------------------------------------------------------------------------------------------
ICON Equity Income Fund - Class C 11/8/02 6.97% 13.04% N/A 15.96%
- ----------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 14.30%
- ----------------------------------------------------------------------------------------------
ICON Equity Income Fund - Class Z 5/10/04 7.43% 14.09% N/A 15.41%
- ----------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 13.00%
- ----------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
The Adviser has agreed to limit certain Fund expenses; without these
limitations, returns would have been lower. The limitation provisions may be
terminated in the future. Class Z shares are available only to institutional
investors.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON EQUITY INCOME FUND - CLASS
I S&P 1500 INDEX
------------------------------- --------------
9/30/02 10000.00 10000.00
10819.00 10811.00
3/31/03 10091.00 10450.00
12073.00 12093.00
12482.00 12469.00
14475.00 14009.00
3/31/04 14940.00 14308.00
15016.00 14557.00
14928.00 14285.00
16146.00 15661.00
3/31/05 15847.00 15349.00
16192.00 15613.00
16822.00 16206.00
16849.00 16550.00
3/31/06 18083.00 17353.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund's Class I shares on the Class' inception
date of 9/30/02 to a $10,000 investment made in an unmanaged securities index on
that date. Performance for the Fund's other share classes will vary due to
differences in charges and expenses. The Fund's performance in this chart and
the performance table assumes the reinvestment of dividends and capital gain
distributions but does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or on the redemption of Fund shares.
Management Overview 49
Schedule of Investments
ICON Equity Income Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
COMMON STOCKS 90.7%
29,400 A.G. Edwards,
Inc. $ 1,465,884
16,400 Abercrombie &
Fitch Co. 956,120
54,100 Alcoa, Inc. 1,653,296
26,800 Altria Group,
Inc. 1,899,048
12,300 Aluminum Corp.
of China,
Ltd. - ADR 1,288,056
28,000 American
Financial
Group, Inc. 1,165,080
62,700 Angelica Corp. 1,286,604
30,300 Arkansas Best
Corp. 1,185,336
51,200 AT&T, Inc. 1,384,448
25,600 Barnes & Noble,
Inc. 1,184,000
18,000 Becton,
Dickinson & Co. 1,108,440
34,800 BellSouth Corp. 1,205,820
31,400 BHP Billiton,
Ltd. - ADR 1,251,290
46,600 Biovail Corp. 1,134,710
29,600 Canadian
National
Railway Co. -
ADR 1,340,288
20,900 Caterpillar,
Inc. 1,500,829
24,834 Cemex S.A. De
C.V. - ADR 1,621,164
28,100 Citigroup, Inc. 1,327,163
17,100 Colgate-
Palmolive Co. 976,410
25,900 Companhia
Energetica de
Minas Gerais -
ADR 1,177,673
29,300 Companhia Vale
do Rio Doce -
ADR 1,421,929
33,200 Computer
Programs &
Systems, Inc. 1,660,000
76,300 Cooper Tire &
Rubber Co. 1,094,142
12,600 Cummins, Inc. 1,324,260
31,300 DaimlerChrysler
AG - ADR 1,796,933
16,300 Deere & Co. 1,288,515
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
18,700 Diamond
Offshore
Drilling, Inc. $ 1,673,650
106,000 Doral Financial
Corp. - ADR 1,224,300
22,100 Dow Jones &
Company, Inc. 868,530
29,100 Eagle
Materials, Inc. 1,855,416
20,300 Eaton Corp. 1,481,291
15,200 Emerson
Electric Co. 1,271,176
31,900 Ethan Allen
Interiors, Inc. 1,340,438
47,000 Family Dollar
Stores, Inc. 1,250,200
23,000 Fannie Mae 1,182,200
59,400 Furniture
Brands
International,
Inc. 1,455,894
45,100 Hewlett-Packard
Co. 1,483,790
23,000 Hillenbrand
Industries,
Inc. 1,264,770
30,900 Honeywell
International,
Inc. 1,321,593
10,300 Infosys
Technologies,
Ltd. - ADR 801,958
40,709 ING Group
N.V. - ADR 1,603,934
44,600 Jackson Hewitt
Tax Services,
Inc. 1,408,468
50,900 JPMorgan Chase
& Co. 2,119,476
49,300 Kellwood Co. 1,547,527
30,400 Kimco Realty
Corp. 1,235,456
57,300 La-Z-Boy, Inc. 974,100
20,000 Lan Airlines
S.A. - ADR 783,800
49,700 Leggett &
Platt, Inc. 1,211,189
58,000 Lennox
International,
Inc. 1,731,880
63,800 Limited Brands,
Inc. 1,560,548
18,500 Lincoln
National Corp. 1,009,915
15,600 Manor Care,
Inc. 691,860
</Table>
50 Schedule of Investments
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
17,105 Marathon Oil
Corp. $ 1,302,888
37,300 Masco Corp. 1,211,877
21,500 McKesson HBOC,
Inc. 1,120,795
34,600 Mellon
Financial Corp. 1,231,760
39,200 Merck & Co.,
Inc. 1,381,016
112,700 Methode
Electronics,
Inc. 1,227,303
33,700 Microchip
Technology,
Inc. 1,223,310
21,400 Morgan Stanley 1,344,348
28,400 MSC Industrial
Direct Co.,
Inc. - Class A 1,534,168
38,100 New Century
Financial Corp. 1,753,362
44,300 NovaStar
Financial, Inc. 1,481,392
32,875 Old Republic
International
Corp. 717,333
56,500 Pacer
International,
Inc. 1,846,420
8,300 Petrochina Co.,
Ltd. - ADR 871,085
51,300 Pfizer, Inc. 1,278,396
46,031 Philippine Long
Distance
Telephone Co. -
ADR 1,729,384
17,700 PNC Financial
Services Group,
Inc. 1,191,387
23,100 Polaris
Industries,
Inc. 1,260,336
46,500 Precision
Drilling
Corp. - ADR 1,503,810
20,000 Protective Life
Corp. 994,800
61,800 Quaker Chemical
Corp. 1,344,150
23,100 Ryder System,
Inc. 1,034,418
44,000 Sabre Holdings
Corp. - Class A 1,035,320
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
53,000 Seagate
Technology $ 1,395,490
21,199 Sempra Energy 984,906
145,800 Siliconware
Precision
Industries
Co. - ADR 940,410
18,000 Southern Copper
Corp. 1,520,640
46,700 Spartech Corp. 1,120,800
76,200 SpectraLink
Corp. 956,310
125,800 Standard Motor
Products, Inc. 1,117,104
59,200 Standard
Register Co. 917,600
73,100 StarTek, Inc. 1,722,236
27,300 Steel Dynamics,
Inc. 1,548,729
132,200 Taiwan
Semiconductor
Manufacturing
Co., Ltd. - ADR 1,329,932
63,600 Technitrol,
Inc. 1,525,128
47,600 Telecomunicacoes
de Sao Paulo
S.A. - ADR 1,175,720
10,900 The Bear
Stearns Cos.,
Inc. 1,511,830
23,600 The Scotts
Miracle-Gro Co. 1,079,936
28,200 Tidewater, Inc. 1,557,486
23,500 United Auto
Group, Inc. 1,010,500
16,700 United Parcel
Service, Inc. -
Class B 1,325,646
29,400 Universal Corp. 1,081,038
16,300 W.W. Grainger,
Inc. 1,228,205
25,100 Wachovia Corp. 1,406,855
48,700 Waddell & Reed
Financial,
Inc. - Class A 1,124,970
26,500 Washington
Mutual, Inc. 1,129,430
12,400 Whirlpool Corp. 1,134,228
------------
TOTAL COMMON STOCKS (COST
$110,477,522) 128,514,984
</Table>
Schedule of Investments 51
Schedule of Investments (continued)
ICON Equity Income Fund
March 31, 2006
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
CONVERTIBLE PREFERRED STOCKS 0.8%
4,000 Northrop
Grumman Corp.
7.00%, 04-04-21 $ 539,000
9,000 Omnicare, Inc.
4.00%, 06-15-33 646,875
------------
TOTAL CONVERTIBLE PREFERRED
STOCKS (COST $1,090,944) 1,185,875
CORPORATE BONDS 3.6%
500,000 Aetna, Inc.
6.97%, 08-15-36 564,142
1,000,000 DaimlerChrysler
AG
6.50%, 11-15-13 1,017,067
1,288,000 Household
Finance Corp.
4.75%, 07-15-13 1,211,850
800,000 Lowe's
Companies, Inc.
8.25%, 06-01-10 884,814
750,000 Mediacom
Broadband LLC
11.00%,
07-15-13 798,750
575,000 United Rentals
NA, Inc.
7.75%, 11-15-13 575,000
------------
TOTAL CORPORATE BONDS (COST
$5,226,269) 5,051,623
CONVERTIBLE CORPORATE BONDS 0.4%
600,000 International
Rectifier Corp.
4.25% 07-15-07 584,250
------------
TOTAL CONVERTIBLE CORPORATE
BONDS (COST $583,500) 584,250
U.S. GOVERNMENT AND U.S. GOVERNMENT AGENCY
BONDS 3.4%
1,323,000 Freddie Mac
5.16%, 02-27-15 1,285,809
258,000 Freddie Mac
5.00%, 09-29-17 243,980
750,000 U.S. Treasury
Note
2.00%, 05-15-06 747,579
750,000 U.S. Treasury
Note
3.13%, 01-31-07 739,424
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
1,000,000 U.S. Treasury
Note
6.25%, 02-15-07 $ 1,011,250
750,000 U.S. Treasury
Note
4.00%, 08-31-07 741,240
------------
TOTAL U.S. GOVERNMENT AND U.S.
GOVERNMENT AGENCY BONDS (COST
$4,811,571) 4,769,282
CALL OPTIONS PURCHASED 0.4%
125 Ceradyne, Inc.
Expiration
January 2007,
Exercise Price
$60.00 70,625
166 Cooper Cameron
Corp.
Expiration
January 2008,
Exercise Price
$40.00 186,750
221 Hunt Transport
Services, Inc.
Expiration
January 2007,
Exercise Price
$30.00 11,050
600 Infocrossing,
Inc. Expiration
September 2006,
Exercise Price
$12.50 88,500
123 Lowe's
Companies, Inc.
Expiration
January 2007,
Exercise Price
$65.00 76,260
125 Trimble
Navigation,
Ltd. Expiration
August 2006,
Exercise Price
$40.00 88,750
667 Unisys Corp.
Expiration
January 2007,
Exercise Price
$7.50 50,025
------------
TOTAL CALL OPTIONS PURCHASED
(COST $478,410) 571,960
</Table>
52 Schedule of Investments
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
SHORT-TERM INVESTMENTS 0.4%
569,623 Brown Brothers
Harriman Time
Deposit, 4.07%,
04-03-06# $ 569,623
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $569,623) 569,623
TOTAL INVESTMENTS 99.3% (COST
$123,237,839) 141,247,597
OTHER ASSETS LESS LIABILITIES
0.7% 413,131
------------
TOTAL NET ASSETS 100.0% $141,660,728
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
Schedule of Investments 53
Management Overview
ICON Long/Short Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 98.3%
Top 10 Long Equity
Holdings 12.2%
Number of Long Stocks 139
Number of Short Positions 3
Short-Term Investments 3.4%
Percentages are based upon net assets.
TOP 10 LONG EQUITY HOLDINGS
March 31, 2006
Union Pacific Corp. 1.3%
Morgan Stanley 1.3%
Companhia De Saneamento Basico do Estado de Sao Paulo - ADR 1.3%
Dollar Tree Stores, Inc.(a) 1.2%
AK Steel Holding Corp.(a) 1.2%
Family Dollar Stores, Inc. 1.2%
Burlington Northern Santa Fe Corp. 1.2%
Norfolk Southern Corp. 1.2%
Eagle Materials, Inc. 1.2%
Polaris Industries, Inc. 1.1%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. For the six-month period ended March 31, 2006, the ICON Long/Short Fund
returned 12.95% for Class I shares, 12.54% for Class C shares and 13.08% for
Class Z shares, outpacing the 7.08% return of the S&P 1500 Index, the Fund's
benchmark, over the same period. Total returns for other periods as of March
31, 2006 appear on page 59.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. The primary driver of the Fund's relative outperformance was a valuation-
based tilt toward industries in the economically sensitive Industrials and
Materials sectors, both of which were heavily overweighted relative to the
benchmark. Also lifting results was effective stock selection within the
underweight Financials group. By contrast, the Fund held minimal short
exposure, as the long side proved far more attractive according to our
analysis. However, these short positions detracted slightly from overall
performance, as industries judged by our system to be overpriced continued to
demonstrate considerable relative strength.
Although the ICON methodology guides the Fund to emphasize specific
industries and securities, it may result in investments concentrated within a
given capitalization range. Such was the case for the period, as stock
selection among large-cap issues aided relative performance despite the
Fund's significant underweight in this range. The portfolio's heavy
overweight in mid-cap stocks also lifted performance, while small-cap
exposure was not as favorable on a relative basis, yet still contributed
positively to results.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. On the long side, the Fund's focus on economically sensitive industries such
as steel and construction & farm machinery & heavy trucks enhanced results,
while stock selection within the computer storage & peripherals space added
to gains. Exposure to trading companies & distributors and investment banking
& brokerage also proved favorable.
Conversely, long-side industries that detracted from performance included
health care facilities, multi-utilities and semiconductors. Likewise, the
Fund's relatively limited short exposure proved a slight drag on results,
with unprofitable companies in the oil & gas exploration & production and oil
& gas refining & marketing areas accounting for the negative effect.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE DOMESTIC EQUITY MARKET?
A. Given continued global expansion, economically sensitive industries were
still among the best performing areas at period-end. However, these groups
have enjoyed an extended advance and have closed relatively substantial
54 Management Overview
[J.C. Waller III PHOTO]
J.C. Waller, III
Portfolio Manager
valuation gaps. As such, shorting opportunities may become more prevalent if
interest rates continue to erode value and overpriced industries show signs
of weakening relative strength. On the long side, certain industries within
the out-of-favor Consumer Discretionary sector are showing nascent signs of
strength, which could prove opportune going forward. Moreover, particular
Energy-related areas are displaying robust earnings growth relative to rising
interest rates, thus providing additional opportunities.
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - The primary driver of the Fund's relative outperformance was a valuation-
based tilt toward industries in the economically sensitive Industrials and
Materials sectors.
- - The Fund benefited from heavily weighted long-side exposure to the steel and
construction & farm machinery & heavy trucks industries.
- - Long side industries detracting from performance included health care
facilities, multi-utilities and semiconductors, while minimal short positions
in oil & gas exploration & production and oil & gas refining & marketing
areas proved a slight drag on results.
Management Overview 55
Management Overview (continued)
ICON Long/Short Fund
SECTOR COMPOSITION
March 31, 2006
<Table>
Industrials 16.5%
Financial 15.9%
Materials 15.3%
Energy 12.1%
Consumer Discretionary 11.9%
Information Technology 10.1%
Healthcare 8.0%
Leisure and Consumer Staples 4.8%
Telecommunication and Utilities 3.7%
</Table>
Percentages are based upon common stock positions and net assets.
56 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Oil & Gas Drilling 4.9%
Oil & Gas Equipment & Services 4.7%
Railroads 4.7%
Steel 4.7%
Diversified Metals & Mining 3.8%
Investment Banking & Brokerage 3.8%
Regional Banks 3.6%
Pharmaceuticals 3.5%
Aluminum 3.2%
General Merchandise Stores 3.0%
Airlines 2.6%
Building Products 2.6%
Oil & Gas Exploration & Production 2.6%
Home Furnishings 2.5%
Apparel Accessories & Luxury Goods 2.4%
Construction Materials 2.4%
Computer Storage & Peripherals 2.3%
Leisure Products 2.3%
Health Care Distributors 2.2%
Communications Equipment 2.1%
Consumer Finance 2.0%
Trucking 1.9%
Wireless Telecommunication Services 1.9%
Apparel Retail 1.8%
Multi-Line Insurance 1.8%
</Table>
Management Overview 57
Management Overview (continued)
ICON Long/Short Fund
<Table>
Water Utilities 1.8%
Internet Software Services 1.7%
Semiconductors 1.7%
Trading Companies & Distributors 1.7%
Life & Health Insurance 1.5%
Soft Drinks 1.5%
Data Processing & Outsourced Services 1.4%
Air Freight & Logistics 1.2%
Asset Management & Custody Banks 1.1%
Health Care Services 1.1%
Other Diversified Financial Services 1.1%
Specialty Chemicals 1.1%
Diversified Banks 1.0%
Photographic Products 1.0%
Human Resource & Employment Services 0.9%
Specialty Stores 0.9%
Managed Health Care 0.8%
Automotive Retail 0.7%
IT Consulting & Other Services 0.7%
Household Appliances 0.6%
Aerospace & Defense 0.4%
Biotechnology 0.4%
Construction & Farm Machinery & Heavy Trucks 0.4%
Computer Hardware 0.3%
</Table>
58 Management Overview
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
INCEPTION SINCE
DATE 6 MONTH* 1 YEAR 5 YEARS INCEPTION
- ---------------------------------------------------------------------------------------------
ICON Long/Short Fund - Class I 9/30/02 12.95% 19.92% N/A 19.94%
- ---------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 17.06%
- ---------------------------------------------------------------------------------------------
ICON Long/Short Fund - Class C 10/17/02 12.54% 19.01% N/A 17.31%
- ---------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 15.70%
- ---------------------------------------------------------------------------------------------
ICON Long/Short Fund - Class Z 5/6/04 13.08% 20.28% N/A 16.66%
- ---------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% N/A 11.37%
- ---------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
The Adviser has agreed to limit certain Fund expenses; without these
limitations, returns would have been lower. The limitation provisions may be
terminated in the future. Class Z shares are available only to institutional
investors.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON LONG/SHORT FUND - CLASS I S&P 1500 INDEX
------------------------------ --------------
9/30/02 10000.00 10000.00
9760.00 10811.00
3/31/03 8880.00 10450.00
11039.00 12093.00
12000.00 12469.00
13453.00 14009.00
3/31/04 14435.00 14308.00
14455.00 14557.00
14091.00 14285.00
15899.00 15661.00
3/31/05 15752.00 15349.00
15700.00 15613.00
16726.00 16206.00
16903.00 16550.00
3/31/06 18891.00 17353.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund's Class I shares on the Class' inception
date of 9/30/02 to a $10,000 investment made in an unmanaged securities index on
that date. Performance for the Fund's other share classes will vary due to
differences in charges and expenses. The Fund's performance in this chart and
the performance table assumes the reinvestment of dividends and capital gain
distributions but does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or on the redemption of Fund shares.
Management Overview 59
Schedule of Investments
ICON Long/Short Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
COMMON STOCKS 98.3%
50,000 99 Cents Only
Stores(a) $ 678,000
16,000 A.C. Moore Arts
& Crafts,
Inc.(a) 294,400
19,000 A.G. Edwards,
Inc. 947,340
18,000 Aeropostale,
Inc.(a) 542,880
96,500 AK Steel
Holding
Corp.(a) 1,447,500
20,000 Alaska Air
Group, Inc.(a) 709,000
41,000 Alcoa, Inc. 1,252,960
28,000 Aleris
International,
Inc.(a) 1,345,960
11,000 Aluminum Corp.
of China,
Ltd. - ADR 1,151,920
36,000 America Movil
S.A. De C.V. -
ADR 1,233,360
40,000 America's Car-
Mart, Inc.(a) 860,000
5,000 American
International
Group, Inc. 330,450
37,000 AmeriCredit
Corp.(a) 1,137,010
22,000 AmerisourceBergen
Corp. 1,061,940
9,000 AmerUs Group
Co. 542,160
18,000 AMR Corp.(a) 486,900
22,000 AstraZeneca
PLC - ADR 1,105,060
11,500 Atwood
Oceanics,
Inc.(a) 1,161,615
15,000 Barr
Pharmaceuticals,
Inc.(a) 944,700
18,000 Barrett
Business
Services,
Inc.(a) 486,000
10,000 Berry Petroleum
Co. 684,500
34,000 BHP Billiton,
Ltd. - ADR 1,354,900
12,000 Borders Group,
Inc. 302,880
17,100 Burlington
Northern Santa
Fe Corp. 1,424,943
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
20,000 C.H. Robinson
Worldwide, Inc. $ 981,800
28,000 Canadian
National
Railway Co. -
ADR 1,267,840
10,000 Caremark Rx,
Inc.(a) 491,800
39,000 Cash America
International,
Inc. 1,170,780
11,200 Celgene
Corp.(a) 495,264
10,005 Cemex S.A. De
C.V. - ADR 653,126
9,000 Ceradyne,
Inc.(a) 449,100
23,500 Christopher &
Banks Corp. 545,435
7,200 CIGNA Corp. 940,464
30,000 Coca-Cola
Enterprises
Inc. 610,200
22,000 Colonial
Bancgroup, Inc. 550,000
6,000 Columbia
Sportswear
Co.(a) 319,980
70,000 Companhia De
Saneamento
Basico do
Estado de Sao
Paulo - ADR 1,540,700
21,600 Companhia Vale
do Rio Doce -
ADR 1,048,248
18,000 Continental
Airlines,
Inc. - Class
B(a) 484,200
42,000 Convergys
Corp.(a) 764,820
40,500 Corning,
Inc.(a) 1,089,855
42,500 Cost Plus,
Inc.(a) 726,750
175,000 Cray, Inc.(a) 316,750
21,000 Credit Suisse
Group - ADR 1,173,060
27,000 CSG Systems
International,
Inc.(a) 628,020
7,000 Cullen/Frost
Bankers, Inc. 376,250
14,500 Diamond
Offshore
Drilling, Inc. 1,297,750
53,000 Dollar Tree
Stores, Inc.(a) 1,466,510
8,000 Dril-Quip,
Inc.(a) 566,800
</Table>
60 Schedule of Investments
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
21,600 Eagle
Materials, Inc. $ 1,377,216
22,000 East-West
Bancorp, Inc. 848,100
40,000 Eastman Kodak
Co. 1,137,600
20,000 EFJ, Inc.(a) 215,800
54,000 Family Dollar
Stores, Inc. 1,436,400
21,000 Fastenal Co. 994,140
7,300 Fiserv, Inc.(a) 310,615
20,000 Forest
Laboratories,
Inc.(a) 892,600
24,500 Fossil, Inc.(a) 455,210
11,000 Freeport-
McMoran Copper
& Gold,
Inc. - Class B 657,470
24,500 Grant Prideco,
Inc.(a) 1,049,580
75,000 Haverty
Furniture Cos.,
Inc. 1,076,250
29,550 HCC Insurance
Holdings, Inc. 1,028,340
15,000 Helen of Troy,
Ltd.(a) 318,000
15,000 Helix Energy
Solutions
Group, Inc.(a) 568,500
17,700 Helmerich &
Payne, Inc. 1,235,814
15,500 Henry Schein,
Inc.(a) 741,830
13,000 Hutchinson
Technology,
Inc.(a) 392,210
14,000 Investors
Financial
Services Corp. 656,180
18,200 j2 Global
Communications,
Inc.(a) 855,400
8,000 Joy Global,
Inc. 478,160
32,000 JPMorgan Chase
& Co. 1,332,480
100,000 K2, Inc.(a) 1,255,000
35,000 KCS Energy,
Inc.(a) 910,000
45,000 Kforce, Inc.(a) 573,750
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
22,000 Knight
Transportation,
Inc. $ 434,500
25,000 Komag, Inc.(a) 1,190,000
15,000 Lan Airlines
S.A. - ADR 587,850
7,300 Lehman Brothers
Holding, Inc. 1,055,069
30,000 Liz Claiborne,
Inc. 1,229,400
7,000 Martin Marietta
Materials, Inc. 749,210
35,000 Masco Corp. 1,137,150
16,700 McKesson HBOC,
Inc. 870,571
15,300 MedcoHealth
Solutions,
Inc.(a) 875,466
25,000 Morgan Stanley 1,570,501
19,000 MSC Industrial
Direct Co.,
Inc. - Class A 1,026,380
40,000 Mylan
Laboratories,
Inc. 936,000
14,500 National-
OilWell Varco,
Inc.(a) 929,740
46,800 Netease.com,
Inc. - ADR(a) 1,148,472
25,000 Newpark
Resources,
Inc.(a) 205,000
17,000 NICE Systems,
Ltd. - ADR(a) 866,320
26,000 Norfolk
Southern Corp. 1,405,820
27,000 Old Dominion
Freight Line,
Inc.(a) 727,650
55,000 OM Group,
Inc.(a) 1,265,000
10,000 Oregon Steel
Mills, Inc.(a) 511,700
13,000 Pacer
International,
Inc. 424,840
10,000 Par
Pharmaceutical
Cos., Inc.(a) 281,800
20,000 Pepsi Bottling
Group, Inc. 607,800
25,000 PepsiAmericas,
Inc. 611,250
12,500 PETCO Animal
Supplies,
Inc.(a) 294,625
</Table>
Schedule of Investments 61
Schedule of Investments (continued)
ICON Long/Short Fund
March 31, 2006
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
10,000 PetsMart, Inc. $ 281,400
25,000 Polaris
Industries,
Inc. 1,364,000
14,500 Polo Ralph
Lauren Corp. 878,845
19,000 Posco - ADR 1,212,200
7,500 Protective Life
Corp. 373,050
4,500 Prudential
Financial, Inc. 341,145
25,000 Radyne Corp.(a) 399,250
7,000 Reliance Steel
& Aluminum Co. 657,440
45,000 Rent-A-Center,
Inc.(a) 1,151,550
5,700 Rio Tinto PLC -
ADR 1,179,900
17,500 Ross Stores,
Inc. 510,825
28,000 Rowan Cos.,
Inc. 1,230,880
23,500 Ryder System,
Inc. 1,052,330
20,000 Satyam Computer
Services,
Ltd. - ADR 875,200
47,000 Seagate
Technology 1,237,510
158,000 Siliconware
Precision
Industries
Co. - ADR 1,019,100
20,000 Simpson
Manufacturing
Co., Inc. 866,000
29,200 SkyWest, Inc. 854,684
15,000 Southern Copper
Corp. 1,267,200
40,000 Southwest Water
Co. 637,600
8,600 StanCorp
Financial
Group, Inc. 465,346
33,800 Steel
Technologies,
Inc. 821,340
100,000 Taiwan
Semiconductor
Manufacturing
Co., Ltd. - ADR 1,006,000
31,800 Texas Regional
Bancshares,
Inc. 937,782
16,500 The Bank of New
York Co., Inc. 594,660
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
26,500 The Finish
Line, Inc. $ 435,925
6,100 The Goldman
Sachs Group,
Inc. 957,456
8,300 The Hartford
Financial
Services Group,
Inc. 668,565
10,000 The Pepsi
Bottling Group,
Inc. 303,900
7,500 The Stanley
Works 379,950
30,000 Tim
Participacoes
S.A. - ADR 1,110,900
18,000 Ultra Petroleum
Corp.(a) 1,121,580
30,000 Umpqua Holdings
Corp. 855,000
17,000 Union Pacific
Corp. 1,586,950
17,000 Unit Corp.(a) 947,750
16,600 Universal
Forest
Products, Inc. 1,053,934
7,500 W&T Offshore,
Inc. 302,325
20,500 W-H Energy
Services,
Inc.(a) 912,045
26,000 Weatherford
International,
Ltd.(a) 1,189,500
15,000 Wintrust
Financial Corp. 872,550
------------
TOTAL COMMON STOCKS (COST
$99,429,612) 116,790,306
SHORT-TERM INVESTMENTS 3.4%
4,084,440 Brown Brothers
Harriman Time
Deposit, 4.07%,
04-03-06# 4,084,440
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $4,084,440) 4,084,440
TOTAL INVESTMENTS 101.7%
(COST $103,514,052) 120,874,746
LIABILITIES LESS OTHER ASSETS
(1.7)% (2,048,792)
------------
TOTAL NET ASSETS 100.0% $118,825,954
============
</Table>
62 Schedule of Investments
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
All shares held may be pledged as collateral for investment securities sold
short.
Schedule of Investments 63
Schedule of Investments
ICON Long/Short Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES SHORT SECURITIES VALUE
- --------------------------------------------
17,500 Contango Oil & Gas
Co.(a) $226,625
27,000 KFx, Inc.(a) 491,400
25,000 Syntroleum Corp.(a) 206,750
--------
TOTAL SHORT SECURITIES
(PROCEEDS $691,961) $924,775
========
</Table>
The accompanying notes are an integral part of this Schedule of Investments.
(a) Non-income producing security.
64 Schedule of Investments
Six Month Hypothetical Expense Example
March 31, 2006 (unaudited)
EXAMPLE
As a shareholder of a Fund you may pay two types of fees: transaction fees and
fund-related fees. Certain funds charge transactions fees, including sales
charges (loads) on purchase payments, reinvested dividends, or other
distributions; redemption fees; and exchange fees. The ICON Funds do not charge
these types of fees. Funds also incur various ongoing expenses, including
management fees, distribution and/or service fees, and other fund expenses,
which are indirectly paid by shareholders.
This Example is intended to help you understand your ongoing costs (in dollars)
of investing in the various ICON Funds and to compare these costs with the
ongoing costs of investing in other mutual funds. This Example is based on an
investment of $1,000 invested at the beginning of the period and held for the
six-month period (10/1/05 - 3/31/06).
ACTUAL EXPENSES
The first set of lines in the table for each Fund provide information about
actual account values and actual expenses. The Example includes, but is not
limited to, management fees, 12b-1 fees, fund accounting, custody and transfer
agent fees. However, the Example does not include client specific fees, such as
the $10.00 fee charged to IRA accounts, or the $15.00 fee charged for wire
redemptions. You may use this information, together with the amount you
invested, to estimate the expenses that you paid over the period. Simply divide
your account value by $1,000 (for example, an $8,600 account value divided by
$1,000 = 8.6), then multiply the result by the number in the first line for each
Fund under the heading entitled "Expenses Paid During Period" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second set of lines in the table for each Fund provide information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare 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 the
shareholder reports of the other funds. Please note that the expenses shown in
the table are meant to highlight your ongoing costs only and do not reflect any
transactional costs, such as sales charges (loads), redemption fees, or exchange
fees that may be charged by other funds. Therefore, this information is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds.
Expense Example 65
Six Month Hypothetical Expense Example (continued)
March 31, 2006 (unaudited)
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD EXPENSE RATIO
10/1/05 3/31/06 10/1/05-3/31/06* 10/1/05-3/31/06
- ------------------------------------------------------------------------------------------------
ICON BOND FUND
- ------------------------------------------------------------------------------------------------
CLASS I
- ------------------------------------------------------------------------------------------------
Actual Expenses $1,000.00 $1,000.20 $ 4.99 1.00%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,020.01 5.04
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------
Actual period 1,000.00 997.20 7.97 1.60%
return
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,017.02 8.05
- ------------------------------------------------------------------------------------------------
CLASS Z
- ------------------------------------------------------------------------------------------------
Actual period 1,000.00 1,001.60 3.74 0.75%
return
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,021.26 3.78
- ------------------------------------------------------------------------------------------------
ICON CORE EQUITY FUND
- ------------------------------------------------------------------------------------------------
CLASS I
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,124.40 6.46 1.22%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,018.92 6.14
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,120.20 10.68 2.02%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,014.93 10.15
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
CLASS Z
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,124.60 5.88 1.11%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,019.47 5.59
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
</Table>
66 Expense Example
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD EXPENSE RATIO
10/1/05 3/31/06 10/1/05-3/31/06* 10/1/05-3/31/06
- ------------------------------------------------------------------------------------------------
ICON COVERED CALL FUND
- ------------------------------------------------------------------------------------------------
CLASS I
- ------------------------------------------------------------------------------------------------
Actual Expenses $1,000.00 $1,029.90 $ 7.34 1.45%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,017.77 7.29
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,026.90 11.12 2.20%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,014.03 11.05
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
CLASS Z
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,031.30 6.08 1.20%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,019.02 6.04
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
ICON EQUITY INCOME
FUND
- ------------------------------------------------------------------------------------------------
CLASS I
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,074.90 6.36 1.23%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,018.87 6.19
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,069.70 11.35 2.20%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,014.03 11.05
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
CLASS Z
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,074.30 6.21 1.20%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,019.02 6.04
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
</Table>
Expense Example 67
Six Month Hypothetical Expense Example (continued)
March 31, 2006 (unaudited)
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD EXPENSE RATIO
10/1/05 3/31/06 10/1/05-3/31/06* 10/1/05-3/31/06
- ------------------------------------------------------------------------------------------------
ICON LONG/SHORT FUND
- ------------------------------------------------------------------------------------------------
CLASS I
- ------------------------------------------------------------------------------------------------
Actual Expenses $1,000.00 $1,129.50 $ 8.23 1.55%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,017.27 7.80
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
CLASS C
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,125.40 12.19 2.30%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,013.53 11.55
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
CLASS Z
- ------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,130.80 6.64 1.25%
- ------------------------------------------------------------------------------------------------
Hypothetical 1,000.00 1,018.77 6.29
Example
(5% return before
expenses)
- ------------------------------------------------------------------------------------------------
</Table>
* Expenses are equal to the Fund's six month expense ratio annualized,
multiplied by the average account value over the period, multiplied by 182/365
to reflect the one-half year period.
68 Expense Example
Statements of Assets and Liabilities
March 31, 2006 (unaudited)
<Table>
<Caption>
ICON ICON ICON ICON
ICON CORE COVERED EQUITY LONG/SHORT
BOND FUND EQUITY FUND CALL FUND INCOME FUND FUND
----------- ------------ ----------- ------------ ------------
ASSETS
Investments, at cost $84,826,610 $177,139,150 $55,536,925 $123,237,839 $103,514,052
----------- ------------ ----------- ------------ ------------
Investments, at value 83,705,421 212,012,254 66,031,601 141,247,597 120,874,746
Cash - - 27,397 4,810 170,105
Deposits for short sales - - - - 1,315,205
Receivables:
Fund shares sold 320,011 502,947 257,554 287,701 1,181,645
Investments sold 5,373,451
Interest 1,187,016 331 194 129,587 -
Dividends - 128,169 51,041 221,191 83,581
Expense reimbursements by Advisor 26,821 - 25,012 2,681 -
Other assets 20,601 20,748 14,644 18,836 16,577
----------- ------------ ----------- ------------ ------------
Total Assets 85,259,870 212,664,449 66,407,443 141,912,403 129,015,310
----------- ------------ ----------- ------------ ------------
LIABILITIES
Options written, at value (premiums received of
$4,641,617) - - 5,326,195 - -
Common stocks sold short, at value (proceeds of
$691,961) - - - - 924,775
Payables:
Due to custodian bank 496,924 - - - -
Investments bought 513,317 - - - 9,058,483
Fund shares redeemed 517,377 215,671 57,844 60,995 21,547
Distributions due to shareholders 5,939 - - 28,511 -
Advisory fees & fee waiver recoupment 42,646 130,660 38,289 88,470 123,316
Accrued distribution fees 17,848 99,946 14,176 30,970 31,452
Fund accounting fees 1,742 4,253 1,288 2,884 2,203
Transfer agent fees 2,742 10,614 2,901 2,506 685
Administration fees 3,365 8,238 2,416 5,580 4,291
Trustee fees 3,760 9,231 2,702 6,245 4,847
Accrued expenses 20,940 16,051 44,221 25,514 17,757
----------- ------------ ----------- ------------ ------------
Total Liabilities 1,626,600 494,664 5,490,032 251,675 10,189,356
----------- ------------ ----------- ------------ ------------
NET ASSETS - ALL SHARE CLASSES $83,633,270 $212,169,785 $60,917,411 $141,660,728 $118,825,954
=========== ============ =========== ============ ============
NET ASSETS - CLASS I $82,736,143 $114,453,932 $57,451,147 $137,397,299 $ 97,546,516
=========== ============ =========== ============ ============
NET ASSETS - CLASS C $ 894,694 $ 96,349,784 $ 3,380,850 $ 4,240,650 $ 17,968,593
=========== ============ =========== ============ ============
NET ASSETS - CLASS Z $ 2,433 $ 1,366,069 $ 85,414 $ 22,779 $ 3,310,845
=========== ============ =========== ============ ============
NET ASSETS CONSIST OF
Paid-in capital $85,809,849 $164,898,584 $51,933,904 $117,717,841 $ 97,554,282
Accumulated undistributed net investment
income/(loss) 38,065 (631,690) (133,206) 41 (300,280)
Accumulated undistributed net realized gain/(loss)
from investments (1,093,455) 13,029,787 (693,385) 5,933,088 4,444,072
Unrealized appreciation/(depreciation) on
investments, written options and securities sold
short (1,121,189) 34,873,104 9,810,098 18,009,758 17,127,880
----------- ------------ ----------- ------------ ------------
NET ASSETS $83,633,270 $212,169,785 $60,917,411 $141,660,728 $118,825,954
=========== ============ =========== ============ ============
Shares outstanding (unlimited shares authorized,
no par value)
Class I 8,311,948 6,978,761 4,053,599 8,796,995 5,402,078
Class C 89,697 6,132,099 245,058 273,123 1,021,394
Class Z 245 83,383 5,996 1,458 182,453
Net asset value (offering and redemption price per
share)
Class I $ 9.95 $ 16.40 $ 14.17 $ 15.62 $ 18.06
Class C $ 9.97 $ 15.71 $ 13.80 $ 15.53 $ 17.59
Class Z $ 9.93 $ 16.38 $ 14.25 $ 15.62 $ 18.15
</Table>
The accompanying notes are an integral part of the financial statements.
Financial Statements 69
Statements of Operations
For the period ended March 31, 2006 (unaudited)
<Table>
<Caption>
ICON ICON ICON ICON
ICON CORE COVERED EQUITY LONG/SHORT
BOND FUND EQUITY FUND CALL FUND INCOME FUND FUND
----------- ----------- ----------- ----------- -----------
INVESTMENT INCOME
Interest $ 2,155,962 $ 46,077 $ 11,355 $ 303,146 $ 44,007
Dividends - 808,197 295,389 1,542,389 346,490
Foreign taxes withheld - (1,729) - - (1,291)
----------- ----------- ----------- ---------- -----------
Total Investment Income 2,155,962 852,545 306,744 1,845,535 389,206
----------- ----------- ----------- ---------- -----------
EXPENSES
Advisory fees 249,901 703,142 216,822 491,123 346,430
Distribution fees:
Class I 102,986 126,742 67,828 158,682 82,405
Class C 3,852 424,384 17,637 19,986 76,289
Fund accounting fees 13,356 24,594 11,556 17,931 11,522
Transfer agent fees 24,027 70,365 19,755 36,653 18,982
Administration fees 19,579 44,049 13,587 30,773 19,126
Registration fees:
Class I 5,804 4,667 3,735 4,523 3,959
Class C 3,560 3,550 2,806 2,842 3,408
Custody fees 9,716 16,010 55,090 15,075 11,551
Insurance expense 2,520 4,766 1,862 4,763 2,003
Trustee fees and expenses 4,227 7,666 3,075 5,569 3,617
Interest expense 4,675 584 7,704 702 1,005
Other expenses 31,170 53,716 24,952 40,745 28,660
----------- ----------- ----------- ---------- -----------
Total expenses before expense
(reimbursement)/recoupment 475,373 1,484,235 446,409 829,367 608,957
----------- ----------- ----------- ---------- -----------
Expense (reimbursement)/recoupment by Advisor due to
expense limitation agreement (51,437) - (6,459) (3,084) 80,529
----------- ----------- ----------- ---------- -----------
Net Expenses 423,936 1,484,235 439,950 826,283 689,486
----------- ----------- ----------- ---------- -----------
NET INVESTMENT INCOME (LOSS) 1,732,026 (631,690) (133,206) 1,019,252 (300,280)
----------- ----------- ----------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
Net realized gain/(loss) from:
Investment transactions (1,013,139) 13,087,844 4,111,422 6,275,287 5,693,050
Written options - - (2,909,582) - -
Securities sold short - - - 37,114
----------- ----------- ----------- ---------- -----------
Total net realized gain/(loss) (1,013,139) 13,087,844 1,201,840 6,275,287 5,730,164
----------- ----------- ----------- ---------- -----------
Change in net unrealized appreciation/(depreciation)
on investments, written options and securities sold
short (646,017) 9,717,730 654,471 2,164,323 5,425,643
----------- ----------- ----------- ---------- -----------
Net realized and unrealized gain/(loss) on
investments (1,659,156) 22,805,574 1,856,311 8,439,610 11,155,807
----------- ----------- ----------- ---------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $ 72,870 $22,173,884 $ 1,723,105 $9,458,862 $10,855,527
=========== =========== =========== ========== ===========
</Table>
The accompanying notes are an integral part of the financial statements.
70 Financial Statements
THIS PAGE INTENTIONALLY LEFT BLANK
Statements of Changes in Net Assets
<Table>
<Caption>
ICON BOND FUND ICON CORE EQUITY FUND
------------------------------------ ------------------------------------
PERIOD ENDED PERIOD ENDED
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------ -------------- ------------------
OPERATIONS
Net investment income/(loss) $ 1,732,026 $ 2,741,954 $ (631,690) $ (959,954)
Net realized gain/(loss) from
investment transactions, written
options and securities sold short (1,013,139) (11,900) 13,087,844 14,916,012
Change in net unrealized
appreciation/(depreciation) on
investments, written options and
securities sold short (646,017) (2,183,484) 9,717,730 8,567,211
------------ ------------ ------------ ------------
Net increase/(decrease) in net
assets resulting from operations 72,870 546,570 22,173,884 22,523,269
------------ ------------ ------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income
Class I (1,673,998) (2,853,077) - -
Class C (15,431) (31,705) - -
Class Z (97) (101) - -
Net realized gains
Class I (67,629) (338,815) (3,632,925) -
Class C (720) (4,379) (3,157,999) -
Class Z (5) (6) (44,621) -
------------ ------------ ------------ ------------
Net decrease from dividends and
distributions (1,757,880) (3,228,083) (6,835,545) -
------------ ------------ ------------ ------------
FUND SHARE TRANSACTIONS
Shares sold
Class I 32,241,305 68,872,908 28,918,826 58,022,225
Class C 140,887 1,493,441 15,573,617 24,404,517
Class Z 2,281 4,736 89,529 1,088,280
Reinvested dividends and
distributions
Class I 1,706,591 3,161,012 3,340,799 -
Class C 14,764 34,828 3,039,446 -
Class Z 103 106 44,621 -
Shares repurchased
Class I (31,961,459) (48,473,705) (19,985,892) (23,305,845)
Class C (229,234) (876,763) (7,241,763) (10,044,802)
Class Z (5,070) (181) (37,877) (7,314)
------------ ------------ ------------ ------------
Net increase/(decrease) from fund
share transactions 1,910,168 24,216,382 23,741,306 50,157,061
------------ ------------ ------------ ------------
Total net increase/(decrease) in net
assets 225,158 21,534,869 39,079,645 72,680,330
NET ASSETS
Beginning of period 83,408,112 61,873,243 173,090,140 100,409,810
------------ ------------ ------------ ------------
End of period $ 83,633,270 $ 83,408,112 $212,169,785 $173,090,140
============ ============ ============ ============
</Table>
72 Financial Statements
<Table>
<Caption>
ICON COVERED CALL FUND ICON EQUITY INCOME FUND ICON LONG/SHORT FUND
------------------------------------ ------------------------------------ ------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------ -------------- ------------------ -------------- ------------------
$ (133,206) $ (269,738) $ 1,019,252 $ 2,384,761 $ (300,280) $ (365,486)
1,201,840 (929,262) 6,275,287 8,338,413 5,730,164 (1,286,092)
654,471 5,856,219 2,164,323 5,084,010 5,425,643 10,046,242
----------- ------------ ------------ ------------ ------------ ------------
1,723,105 4,657,219 9,458,862 15,807,184 10,855,527 8,394,664
----------- ------------ ------------ ------------ ------------ ------------
- - (1,477,196) (2,332,579) - -
- - (27,349) (30,549) - -
- - (268) (410) - -
(466,120) (2,014,072) (8,604,004) (690,470) - (1,266,628)
(32,162) (97,417) (280,066) (13,763) - (183,354)
(31) (118) (1,603) (103) - 1,524
----------- ------------ ------------ ------------ ------------ ------------
(498,313) (2,111,607) (10,390,486) (3,067,874) - (1,451,506)
----------- ------------ ------------ ------------ ------------ ------------
9,933,127 22,320,205 19,139,711 40,993,500 44,917,996 48,606,994
190,997 2,209,902 519,589 2,071,831 3,739,473 10,192,112
81,394 727 2,349 9,609 3,129,470 101,583
459,746 1,901,482 9,350,759 2,824,292 - 1,158,739
27,565 88,746 263,358 36,636 - 163,651
31 118 1,870 513 - 1,524
(8,457,866) (15,241,634) (19,867,994) (44,139,761) (9,408,440) (26,815,665)
(544,458) (751,331) (377,695) (418,636) (1,592,234) (1,348,857)
- (790) (4,199) (3,317) (38,954) (7,915)
----------- ------------ ------------ ------------ ------------ ------------
1,690,536 10,527,425 9,027,748 1,374,667 40,747,311 32,052,166
----------- ------------ ------------ ------------ ------------ ------------
2,915,328 13,073,037 8,096,124 14,113,977 51,602,838 38,995,324
58,002,083 44,929,046 133,564,604 119,450,627 67,223,116 28,227,792
----------- ------------ ------------ ------------ ------------ ------------
$60,917,411 $ 58,002,083 $141,660,728 $133,564,604 $118,825,954 $ 67,223,116
=========== ============ ============ ============ ============ ============
</Table>
Financial Statements 73
Statements of Changes in Net Assets (continued)
<Table>
<Caption>
ICON BOND FUND ICON CORE EQUITY FUND
------------------------------------ ------------------------------------
PERIOD ENDED PERIOD ENDED
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------ -------------- ------------------
TRANSACTIONS IN FUND SHARES
Shares sold
Class I 3,211,731 6,619,646 1,871,635 4,143,039
Class C 13,991 142,887 1,046,679 1,818,535
Class Z 227 455 5,743 74,785
Reinvested dividends and
distributions
Class I 170,422 304,338 223,461 -
Class C 1,470 3,347 211,758 -
Class Z 10 10 2,991 -
Shares repurchased
Class I (3,182,381) (4,658,204) (1,311,316) (1,647,530)
Class C (22,817) (84,344) (484,447) (740,648)
Class Z (504) (17) (2,427) (514)
----------- ----------- ------------ ------------
Net increase/(decrease) 192,149 2,328,118 1,564,077 3,647,667
----------- ----------- ------------ ------------
Shares outstanding beginning of
period 8,209,741 5,881,623 11,630,166 7,982,499
----------- ----------- ------------ ------------
Shares outstanding end of period 8,401,890 8,209,741 13,194,243 11,630,166
=========== =========== ============ ============
PURCHASE AND SALES OF INVESTMENT SECURITIES
(excluding short-term securities and written options)
Purchase of securities (including
short sale transactions) $24,952,889 $30,243,959 $127,902,970 $230,365,019
Proceeds from sales of securities
(including short sale
transactions) 22,941,263 18,795,990 111,816,633 183,339,859
Purchases of long-term U.S.
government securities - 27,647,371 - -
Proceeds from sales of long-term
U.S. government securities 8,030,763 28,497,651 - -
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME/(LOSS) $ 38,065 $ (4,435) $ (631,690) $ -
=========== =========== ============ ============
</Table>
The accompanying notes are an integral part of the financial statements.
74 Financial Statements
<Table>
<Caption>
ICON COVERED CALL FUND ICON EQUITY INCOME FUND ICON LONG/SHORT FUND
------------------------------------ ------------------------------------ ------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------ -------------- ------------------ -------------- ------------------
720,302 1,669,418 1,252,927 2,741,457 2,639,257 3,261,050
14,361 168,643 34,331 139,266 229,807 700,414
5,749 54 153 633 176,011 6,835
33,630 141,902 632,139 183,923 - 77,095
2,068 6,733 17,970 2,394 - 11,065
2 9 126 34 - 101
(616,123) (1,138,447) (1,299,809) (2,917,378) (562,066) (1,771,701)
(40,607) (56,539) (24,960) (27,971) (99,068) (91,534)
- (57) (274) (219) (2,279) (524)
----------- ----------- ----------- ------------ ----------- -----------
119,382 791,716 612,603 122,139 2,381,662 2,192,801
----------- ----------- ----------- ------------ ----------- -----------
4,185,271 3,393,555 8,458,973 8,336,834 4,224,263 2,031,462
----------- ----------- ----------- ------------ ----------- -----------
4,304,653 4,185,271 9,071,576 8,458,973 6,605,925 4,224,263
=========== =========== =========== ============ =========== ===========
$40,590,090 $92,623,516 $93,140,830 $187,781,662 $72,223,828 $83,387,797
43,168,584 86,038,491 93,512,885 188,205,266 34,358,136 57,223,650
- - 2,513,008 1,564,975 - -
- - 2,575,196 - - -
$ (133,206) $ (269,738) $ 41 $ 485,602 $ (300,280) $ -
=========== =========== =========== ============ =========== ===========
</Table>
Financial Statements 75
Financial Highlights
<Table>
<Caption>
INCOME FROM INVESTMENT OPERATIONS
----------------------------------------
NET ASSET NET NET REALIZED
VALUE, INVESTMENT AND UNREALIZED TOTAL FROM
BEGINNING INCOME/ GAINS/(LOSSES) INVESTMENT
OF PERIOD (LOSS)(X) ON INVESTMENTS OPERATIONS
--------- ---------- -------------- ----------
ICON BOND FUND
CLASS I+
Period Ended March 31, 2006 (unaudited) $10.16 0.21 (0.21) (0.00)
Year Ended September 30, 2005 $10.52 0.40 (0.29) 0.11
Year Ended September 30, 2004 $10.41 0.45 0.10 0.55
September 30, 2002 (inception) to
September 30, 2003 $10.00 0.42 0.38 0.80
CLASS C
Period Ended March 31, 2006 (unaudited) $10.18 0.18 (0.21) (0.03)
Year Ended September 30, 2005 $10.54 0.33 (0.28) 0.05
Year Ended September 30, 2004 $10.42 0.38 0.12 0.50
October 21, 2002 (inception) to
September 30, 2003 $ 9.79 0.37 0.60 0.97
CLASS Z
Period Ended March 31, 2006 (unaudited) $10.15 0.22 (0.21) 0.01
Year Ended September 30, 2005 $10.51 0.42 (0.28) 0.14
May 6, 2004 (inception) to September
30, 2004 $10.26 0.46 (0.02) 0.44
ICON CORE EQUITY FUND
CLASS I
Period Ended March 31, 2006 (unaudited) $15.14 (0.02) 1.85 1.83
Year Ended September 30, 2005 $12.78 (0.05) 2.41 2.36
Year Ended September 30, 2004 $11.12 (0.07) 1.73 1.66
Year Ended September 30, 2003 $ 9.50 (0.04) 1.66 1.62
Year Ended September 30, 2002 $10.04 (0.07) (0.20) (0.27)
October 12, 2000 (inception) to
September 30, 2001 $10.00 (0.05) 0.09 0.04
CLASS C
Period Ended March 31, 2006 (unaudited) $14.58 (0.08) 1.78 1.70
Year Ended September 30, 2005 $12.41 (0.15) 2.32 2.17
Year Ended September 30, 2004 $10.88 (0.16) 1.69 1.53
Year Ended September 30, 2003 $ 9.36 (0.11) 1.63 1.52
Year Ended September 30, 2002 $ 9.98 (0.15) (0.20) (0.35)
November 28, 2000 (inception) to
September 30, 2001 $10.62 (0.10) (0.54) (0.64)
CLASS Z
Period Ended March 31, 2006 (unaudited) $15.12 (0.02) 1.85 1.83
Year Ended September 30, 2005 $12.79 (0.14) 2.47 2.33
May 6, 2004 (inception) to September
30, 2004 $12.07 (0.03) 0.75 0.72
ICON COVERED CALL FUND
CLASS I+
Period Ended March 31, 2006 (unaudited) $13.88 (0.03) 0.44 0.41
Year Ended September 30, 2005 $13.25 (0.06) 1.26 1.20
Year Ended September 30, 2004 $12.40 (0.07) 1.36 1.29
September 30, 2002 (inception) to
September 30, 2003 $10.00 (0.07) 2.47 2.40
CLASS C
Period Ended March 31, 2006 (unaudited) $13.56 (0.08) 0.44 0.36
Year Ended September 30, 2005 $13.06 (0.16) 1.23 1.07
Year Ended September 30, 2004 $12.32 (0.16) 1.34 1.18
November 21, 2002 (inception) to
September 30, 2003 $10.75 (0.17) 1.74 1.57
CLASS Z
Period Ended March 31, 2006 (unaudited) $13.94 - 0.43 0.43
Year Ended September 30, 2005 $13.29 (0.03) 1.24 1.22
May 6, 2004 (inception) to September
30, 2004 $12.86 (0.01) 0.44 0.43
<Caption>
LESS DIVIDENDS AND DISTRIBUTIONS
------------------------------------------------------
DIVIDENDS DISTRIBUTIONS TOTAL NET ASSET
FROM NET FROM NET DIVIDENDS VALUE,
INVESTMENT REALIZED AND END OF
INCOME GAINS DISTRIBUTIONS PERIOD
---------- ------------- ------------- ---------
ICON BOND FUND
CLASS I+
Period Ended March 31, 2006 (unaudited) (0.20) (0.01) (0.21) $ 9.95
Year Ended September 30, 2005 (0.41) (0.06) (0.47) $10.16
Year Ended September 30, 2004 (0.44) - (0.44) $10.52
September 30, 2002 (inception) to
September 30, 2003 (0.39) - (0.39) $10.41
CLASS C
Period Ended March 31, 2006 (unaudited) (0.17) (0.01) (0.18) $ 9.97
Year Ended September 30, 2005 (0.35) (0.06) (0.41) $10.18
Year Ended September 30, 2004 (0.38) - (0.38) $10.54
October 21, 2002 (inception) to
September 30, 2003 (0.34) - (0.34) $10.42
CLASS Z
Period Ended March 31, 2006 (unaudited) (0.22) (0.01) (0.23) $ 9.93
Year Ended September 30, 2005 (0.44) (0.06) (0.50) $10.15
May 6, 2004 (inception) to September
30, 2004 (0.19) - (0.19) $10.51
ICON CORE EQUITY FUND
CLASS I
Period Ended March 31, 2006 (unaudited) - (0.57) (0.57) $16.40
Year Ended September 30, 2005 - - - $15.14
Year Ended September 30, 2004 - - - $12.78
Year Ended September 30, 2003 - - - $11.12
Year Ended September 30, 2002 - (0.27) (0.27) $ 9.50
October 12, 2000 (inception) to
September 30, 2001 - - - $10.04
CLASS C
Period Ended March 31, 2006 (unaudited) - (0.57) (0.57) $15.71
Year Ended September 30, 2005 - - - $14.58
Year Ended September 30, 2004 - - - $12.41
Year Ended September 30, 2003 - - - $10.88
Year Ended September 30, 2002 - (0.27) (0.27) $ 9.36
November 28, 2000 (inception) to
September 30, 2001 - - - $ 9.98
CLASS Z
Period Ended March 31, 2006 (unaudited) - (0.57) (0.57) $16.38
Year Ended September 30, 2005 - - - $15.12
May 6, 2004 (inception) to September
30, 2004 - - - $12.79
ICON COVERED CALL FUND
CLASS I+
Period Ended March 31, 2006 (unaudited) - (0.12) (0.12) $14.17
Year Ended September 30, 2005 - (0.57) (0.57) $13.88
Year Ended September 30, 2004 - (0.44) (0.44) $13.25
September 30, 2002 (inception) to
September 30, 2003 - - - $12.40
CLASS C
Period Ended March 31, 2006 (unaudited) - (0.12) (0.12) $13.80
Year Ended September 30, 2005 - (0.57) (0.57) $13.56
Year Ended September 30, 2004 - (0.44) (0.44) $13.06
November 21, 2002 (inception) to
September 30, 2003 - - - $12.32
CLASS Z
Period Ended March 31, 2006 (unaudited) - (0.12) (0.12) $14.25
Year Ended September 30, 2005 - (0.57) (0.57) $13.94
May 6, 2004 (inception) to September
30, 2004 - - - $13.29
</Table>
76 Financial Highlights
<Table>
<Caption>
RATIO OF EXPENSES TO RATIO OF NET INVESTMENT INCOME
AVERAGE NET ASSETS(A) TO AVERAGE NET ASSETS(A)
------------------------- -------------------------------
AVERAGE NET BEFORE AFTER BEFORE AFTER
NET ASSETS, ASSETS FOR EXPENSE EXPENSE EXPENSE EXPENSE PORTFOLIO
TOTAL END OF PERIOD THE PERIOD LIMITATION/ LIMITATION/ LIMITATION/ LIMITATION/ TURNOVER
RETURN* (IN THOUSANDS) (IN THOUSANDS) RECOUPMENT RECOUPMENT RECOUPMENT RECOUPMENT RATE(B)
------- -------------- -------------- ----------- ----------- -------------- -------------- ---------
0.02% $ 82,736 82,620 1.10% 1.00% 4.06% 4.16% 40.00%
1.05% $ 82,415 71,253 1.18% 1.10% 3.72% 3.80% 76.28%
5.41% $ 61,502 46,295 1.29% 1.30% 4.28% 4.27% 37.98%
8.19% $ 39,338 33,787 1.45% 1.30% 4.01% 4.16% 41.65%
(0.28)% $ 895 908 3.20% 1.60% 1.97% 3.57% 40.00%
0.47% $ 988 926 3.42% 1.69% 1.46% 3.19% 76.28%
4.83% $ 371 317 6.84% 1.90% 3.63% 8.57% 37.98%
9.98% $ 260 199 2.05% 1.90% 3.48% 3.63% 41.65%
0.16% $ 2 5 50.81% 0.75% (45.64)% 4.42% 40.00%
1.30% $ 5 2 74.28% 0.84% (69.41)% 4.03% 76.28%
4.33% $ 1 1 0.86% 0.86% 4.60% 4.60% 37.98%
12.44% $114,454 101,786 1.22% N/A (0.31)% N/A 60.10%
18.47% $ 93,780 69,660 1.27% N/A (0.33)% N/A 136.82%
14.93% $ 47,273 43,044 1.33% N/A (0.59)% N/A 116.26%
17.05% $ 37,603 34,007 1.39% N/A (0.37)% N/A 188.07%
(3.23)% $ 42,232 37,577 1.36% N/A (0.58)% N/A 107.82%
0.40% $ 23,261 23,802 1.60% N/A (0.36)% N/A 124.61%
12.02% $ 96,350 85,210 2.02% N/A (1.11)% N/A 60.10%
17.49% $ 78,145 66,561 2.04% N/A (1.10)% N/A 136.82%
14.06% $ 53,101 45,114 2.08% N/A (1.34)% N/A 116.26%
16.24% $ 35,428 30,459 2.14% N/A (1.12)% N/A 188.07%
(4.07)% $ 27,744 19,849 2.11% N/A (1.33)% N/A 107.82%
(6.03)% $ 6,324 2,920 2.23% N/A (1.24)% N/A 124.61%
12.46% $ 1,366 1,239 1.11% N/A (0.20)% N/A 60.10%
18.22% $ 1,165 229 1.76% N/A (0.94)% N/A 136.82%
5.97% $ 36 32 1.12% N/A (0.28)% N/A 116.26%
2.99% $ 57,451 54,428 1.45% 1.45% (0.41)% (0.41)% 64.95%
9.21% $ 54,347 49,938 1.54% 1.45% (0.57)% (0.48)% 159.35%
10.53% $ 42,962 30,305 1.60% 1.45% (0.67)% (0.52)% 167.57%
24.00% $ 20,981 14,544 2.07% 1.45% (1.27)% (0.65)% 184.24%
2.69% $ 3,381 3,536 2.55% 2.20% (1.52)% (1.17)% 64.95%
8.31% $ 3,652 2,914 2.80% 2.20% (1.80)% (1.20)% 159.35%
9.69% $ 1,964 838 3.89% 2.20% (2.93)% (1.23)% 167.57%
14.60% $ 148 50 2.83% 2.20% (2.13)% (1.50)% 184.24%
3.13% $ 85 30 7.94% 1.20% (6.71)% 0.03% 64.95%
9.42% $ 3 3 53.94% 1.20% (52.97)% (0.23)% 159.35%
3.34% $ 3 2 1.12% 1.12% (0.11)% (0.11)% 167.57%
</Table>
Financial Highlights 77
Financial Highlights (continued)
<Table>
<Caption>
INCOME FROM INVESTMENT OPERATIONS
----------------------------------------
NET ASSET NET NET REALIZED
VALUE, INVESTMENT AND UNREALIZED TOTAL FROM
BEGINNING INCOME/ GAINS/(LOSSES) INVESTMENT
OF PERIOD (LOSS)(X) ON INVESTMENTS OPERATIONS
--------- ---------- -------------- ----------
ICON EQUITY INCOME FUND
CLASS I+
Period Ended March 31, 2006 (unaudited) $15.79 0.12 0.97 1.09
Year Ended September 30, 2005 $14.33 0.27 1.54 1.81
Year Ended September 30, 2004 $12.22 0.31 2.09 2.40
September 30, 2002 (inception) to
September 30, 2003 $10.00 0.25 2.20 2.45
CLASS C
Period Ended March 31, 2006 (unaudited) $15.71 0.05 0.96 1.01
Year Ended September 30, 2005 $14.27 0.13 1.54 1.67
Year Ended September 30, 2004 $12.21 0.20 2.06 2.26
November 8, 2002 (inception) to
September 30, 2003 $10.63 0.16 1.59 1.75
CLASS Z
Period Ended March 31, 2006 (unaudited) $15.79 0.12 0.98 1.10
Year Ended September 30, 2005 $14.33 0.28 1.55 1.83
May 10, 2004 (inception) to September
30, 2004 $13.43 0.39 0.70 1.09
ICON LONG/SHORT FUND(D)
CLASS I+
Period Ended March 31, 2006 (unaudited) $15.99 (0.05) 2.12 2.07
Year Ended September 30, 2005 $13.92 (0.08) 2.65 2.57
Year Ended September 30, 2004 $12.00 (0.08) 2.16 2.08
September 30, 2002 (inception) to
September 30, 2003 $10.00 (0.07) 2.07 2.00
CLASS C
Period Ended March 31, 2006 (unaudited) $15.63 (0.11) 2.07 1.96
Year Ended September 30, 2005 $13.73 (0.19) 2.59 2.40
Year Ended September 30, 2004 $11.92 (0.18) 2.15 1.97
October 17, 2002 (inception) to
September 30, 2003 $10.61 (0.15) 1.46 1.31
CLASS Z
Period Ended March 31, 2006 (unaudited) $16.05 (0.03) 2.13 2.10
Year Ended September 30, 2005 $13.94 (0.05) 2.66 2.61
May 6, 2004 (inception) to September
30, 2004 $13.99 (0.04) (0.01) (0.05)
<Caption>
LESS DIVIDENDS AND DISTRIBUTIONS
------------------------------------------------------
DIVIDENDS DISTRIBUTIONS TOTAL NET ASSET
FROM NET FROM NET DIVIDENDS VALUE,
INVESTMENT REALIZED AND END OF
INCOME GAINS DISTRIBUTIONS PERIOD
---------- ------------- ------------- ---------
ICON EQUITY INCOME FUND
CLASS I+
Period Ended March 31, 2006 (unaudited) (0.17) (1.09) (1.26) $15.62
Year Ended September 30, 2005 (0.27) (0.08) (0.35) $15.79
Year Ended September 30, 2004 (0.29) - (0.29) $14.33
September 30, 2002 (inception) to
September 30, 2003 (0.23) - (0.23) $12.22
CLASS C
Period Ended March 31, 2006 (unaudited) (0.10) (1.09) (1.19) $15.53
Year Ended September 30, 2005 (0.15) (0.08) (0.23) $15.71
Year Ended September 30, 2004 (0.20) - (0.20) $14.27
November 8, 2002 (inception) to
September 30, 2003 (0.17) - (0.17) $12.21
CLASS Z
Period Ended March 31, 2006 (unaudited) (0.18) (1.09) (1.27) $15.62
Year Ended September 30, 2005 (0.29) (0.08) (0.37) $15.79
May 10, 2004 (inception) to September
30, 2004 (0.19) - (0.19) $14.33
ICON LONG/SHORT FUND(D)
CLASS I+
Period Ended March 31, 2006 (unaudited) - - - $18.06
Year Ended September 30, 2005 - (0.50) (0.50) $15.99
Year Ended September 30, 2004 - (0.16) (0.16) $13.92
September 30, 2002 (inception) to
September 30, 2003 - - - $12.00
CLASS C
Period Ended March 31, 2006 (unaudited) - - - $17.59
Year Ended September 30, 2005 - (0.50) (0.50) $15.63
Year Ended September 30, 2004 - (0.16) (0.16) $13.73
October 17, 2002 (inception) to
September 30, 2003 - - - $11.92
CLASS Z
Period Ended March 31, 2006 (unaudited) - - - $18.15
Year Ended September 30, 2005 - (0.50) (0.50) $16.05
May 6, 2004 (inception) to September
30, 2004 - - - $13.94
</Table>
(x) Calculated using the average share method.
* The total return calculation is for the period indicated.
(a) Annualized for periods less than a year.
(b) Portfolio turnover is calculated at the Fund level.
(c) The limitation on expenses for Class Z shares occurred when the Advisor
reimbursed the Fund for excise and income taxes incurred during the period
(Note 5). These expenses were extraordinary expenses not subject to the
contractual expense limitation discussed in Note 2.
(d) The Fund's operating expenses, not including dividends on short positions,
are contractually limited to 2.30% for Class C, 1.55% for Class I, and 1.30%
for Class Z. The ratios in these financial highlights reflect the
limitation, including the dividends on short positions.
+ The Fund has changed its originally stated inception date of October 1, 2002
to September 30, 2002.
The accompanying notes are an integral part of the financial statements.
78 Financial Highlights
<Table>
<Caption>
RATIO OF EXPENSES TO RATIO OF NET INVESTMENT INCOME
AVERAGE NET ASSETS(A) TO AVERAGE NET ASSETS(A)
------------------------- -------------------------------
AVERAGE NET BEFORE AFTER BEFORE AFTER
NET ASSETS, ASSETS FOR EXPENSE EXPENSE EXPENSE EXPENSE PORTFOLIO
TOTAL END OF PERIOD THE PERIOD LIMITATION/ LIMITATION/ LIMITATION/ LIMITATION/ TURNOVER
RETURN* (IN THOUSANDS) (IN THOUSANDS) RECOUPMENT RECOUPMENT RECOUPMENT RECOUPMENT RATE(B)
------- -------------- -------------- ----------- ----------- -------------- -------------- ---------
7.49% $137,397 127,337 1.23% 1.23% 1.59% 1.59% 73.48%
12.71% $129,681 131,412 1.27% 1.27% 1.79% 1.79% 143.82%
19.69% $117,552 88,318 1.35% 1.37% 2.25% 2.23% 51.84%
24.72% $ 42,474 25,288 1.72% 1.45% 2.23% 2.30% 35.17%
6.97% $ 4,241 4,010 2.31% 2.20% 0.51% 0.62% 73.48%
11.71% $ 3,861 3,026 2.53% 2.20% 0.53% 0.86% 143.82%
18.56% $ 1,885 1,053 3.47% 2.20% 0.12% 1.40% 51.84%
16.63% $ 581 348 2.48% 2.20% 1.10% 1.38% 35.17%
7.43% $ 23 23 8.56% 1.20% (5.75)% 1.61% 73.48%
12.89% $ 23 20 9.37% 1.20% (6.31)% 1.86% 143.82%
8.12% $ 14 12 1.11% 0.97%(c) 2.62% 2.76% 51.84%
12.95% $ 97,547 66,347 1.32% 1.55% (0.37)% (0.60)% 41.86%
18.69% $ 53,158 47,211 1.58% 1.58% (0.53)% (0.53)% 112.06%
17.42% $ 24,480 14,374 2.15% 1.74% (1.03)% (0.62)% 148.32%
20.00% $ 9,726 6,997 3.09% 1.55% (2.20)% (0.66)% 162.25%
12.54% $ 17,969 15,322 2.20% 2.30% (1.27)% (1.37)% 41.86%
17.68% $ 13,925 8,860 2.37% 2.32% (1.35)% (1.31)% 112.06%
16.61% $ 3,716 1,417 3.70% 2.49% (2.57)% (1.35)% 148.32%
12.35% $ 269 186 3.84% 2.30% (2.99)% (1.45)% 162.25%
13.08% $ 3,311 332 1.70% 1.30% (0.82)% (0.42)% 41.86%
18.96% $ 140 89 3.07% 1.33% (2.07)% (0.33)% 112.06%
(0.36)% $ 32 29 1.98% 1.76% (0.50)% (0.28)% 148.32%
</Table>
Financial Highlights 79
Notes to Financial Statements (unaudited)
March 31, 2006
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The ICON Bond Fund ("Bond Fund"), ICON Core Equity Fund ("Core Equity Fund")
ICON Covered Call Fund ("Covered Call Fund"), ICON Equity Income Fund ("Equity
Income Fund"), and ICON Long/Short Fund ("Long/Short Fund") are series funds
(individually a "Fund" and collectively, the "Funds"). The Funds are part of the
ICON Funds (the "Trust"), a Massachusetts business trust registered under the
Investment Company Act of 1940, as amended (the "1940 Act") as an open-end
investment management company. The ICON Core Equity Fund commenced operations on
October 12, 2000; the other Funds commenced operations on September 30, 2002.
Each Fund offers three classes of shares, Class I, Class C and Class Z. All
classes have equal rights as to earnings, assets and voting privileges except
that each Class may bear different distribution fees, registration costs and
shareholder servicing costs and each Class has exclusive voting rights with
respect to its distribution plan. There are currently 12 other active funds
within the Trust. Those funds are covered by separate prospectuses and
shareholder reports.
Each Fund is authorized to issue an unlimited number of no par shares. The
investment objective of the Bond Fund is maximum total return. The investment
objective of the Core Equity Fund is long-term capital appreciation with a
secondary objective of capital preservation. The investment objective of the
Covered Call Fund is modest capital appreciation and to maximize realized gains
from writing covered call options. The investment objective of the Equity Income
Fund is modest capital appreciation and income. The investment objective of the
Long/Short Fund is capital appreciation.
The Funds may have elements of risk, including the risk of loss of principal.
There is no assurance that the investment process will consistently lead to
successful results. An investment concentrated in sectors and industries may
involve greater risk and volatility than a more diversified investment.
Investing in fixed income securities such as bonds involves interest rate risk.
When interest rates rise, the value of fixed income securities generally
decreases. Additionally, the Bond Fund may invest in medium- and lower-quality
debt securities. High-yield bonds involve a greater risk of default and price
volatility than U.S. government and other high-quality bonds. The Covered Call
Fund invests in call options; call options involve certain risks, such as
limited gains and lack of liquidity of the underlying securities, and are not
suitable for all investors. The Long/Short Fund invests short in securities;
there are risks associated with selling short, including the risk that the
Long/Short Fund may have to cover its short position at a higher price than the
short sale, resulting in a loss. The Fund's loss on a short sale is potentially
unlimited as a loss occurs when the value of a security sold short increases.
There are also risks associated with small and mid-cap investing, including
limited product lines, less liquidity and small market share. Investments in
foreign securities and currency transactions may involve certain considerations
and risks not typically
80 Notes to Financial Statements
associated with those of U.S. dollar-denominated transactions as a result of,
among other factors, the possibility of lower government supervision and
regulation of foreign securities markets and the possibility of political or
economic instability.
In addition, in the normal course of business, the Funds may enter into various
agreements that provide for general indemnifications. Each Fund's maximum
exposure under these arrangements is unknown as any potential exposure involves
future claims that may be made against each Fund. However, based on experience,
the Funds expect the risk of loss to be remote.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of income and expenses during the
reporting period. Actual results could differ from these estimates.
INVESTMENT VALUATION
The Funds' securities and other assets are valued as of the closing price at the
close of regular trading on the New York Stock Exchange (the "NYSE") (normally 4
p.m. Eastern time) each day the NYSE is open, except that securities traded
primarily on the NASDAQ Stock Market ("NASDAQ") are normally valued by a Fund at
the NASDAQ Official Closing Price provided by NASDAQ each business day. The
Funds use pricing services to report the market value of securities in their
portfolios; if a pricing service is not able to provide a price, or the pricing
service quote of valuation is inaccurate or does not reflect the market value of
the security, prices may be obtained through market quotations from independent
broker/dealers. If market quotations from these sources are not readily
available, the Funds' securities or other assets are valued at fair value as
determined in good faith by the Funds' Board of Trustees ("Board") or pursuant
to procedures approved by the Board. The valuation assigned to fair-valued
securities for purposes of calculating a Fund's net asset value ("NAV") may
differ from the security's most recent closing market price and from the prices
used by other mutual funds to calculate their NAVs.
Lacking any sales that day, the security is valued at the current closing bid
price (or yield equivalent thereof) or based on quotes obtained from dealers
making a market for the security. Options are valued at their closing mid-price
on the principal market where the option is traded. Mid-price is the average of
the closing bid and closing ask prices. Debt securities with a remaining
maturity of greater than sixty days are valued in accordance with the evaluated
bid price supplied by the pricing service. The evaluated bid price supplied by
the pricing
Notes to Financial Statements 81
Notes to Financial Statements (continued)
service is a matrix system which considers such factors as security prices,
yields, maturities and ratings. Short-term securities with remaining maturities
of sixty days or less are generally valued at amortized cost or original cost
plus accrued interest, which approximates market value. Currency rates as of the
close of the New York Stock Exchange are used to convert foreign security values
into U.S. dollars.
Foreign securities traded in countries outside of the Western Hemisphere are
fair valued daily by utilizing the quotations of an independent pricing service,
unless the Funds' adviser determines that use of another valuation methodology
is appropriate. The pricing service uses statistical analyses and quantitative
models to adjust local market prices using factors such as subsequent movement
and changes in the prices of indexes, securities and exchange rates in other
markets in determining fair value as of the time a Fund calculates its net asset
value.
REPURCHASE AGREEMENTS
Repurchase agreements, if held by the Funds, are fully collateralized by U.S.
Government securities and such collateral is in the possession of the Funds'
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. In the event of default on the obligation to purchase, the Funds have
the right to liquidate the collateral and apply the proceeds in satisfaction of
the obligation. In the event of default or bankruptcy by the other party to the
agreement, realization and/or retention of the collateral or proceeds may be
subject to legal proceedings. No repurchase agreements were purchased or sold by
the Funds during the period ended March 31, 2006.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are translated into U.S. dollars at the prevailing rates of exchange daily.
Income and expenses are translated into U.S. dollars at the prevailing exchange
rate on the respective dates of the transactions. Purchases and sales of
securities are translated into U.S. dollars at the contractual currency exchange
rates established at the time of each trade.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Net unrealized
appreciation or depreciation on investments and foreign currency translations
arise from changes in the value of assets and liabilities, resulting from
changes in the exchange rates and changes in market prices of securities held.
82 Notes to Financial Statements
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into short-term forward foreign currency contracts in
connection with planned purchases or sales of securities as a hedge against
fluctuations in foreign exchange rates pending the settlement of transactions in
foreign securities. A forward foreign currency contract is an agreement between
contracting parties to exchange an amount of currency at some future time with
an agreed upon rate.
These contracts are marked-to-market daily and the related appreciation or
depreciation of the contract is presented in the Statements of Assets and
Liabilities. Net realized gains and losses on foreign currency transactions
represent disposition of foreign currencies, and the difference between the
amount recorded at the time of the transaction and the U.S. dollar amount
actually received. Any realized gain or loss incurred by the Funds due to
foreign currency translation is included in the Statements of Operations. The
Funds did not enter into any forward foreign currency contracts during the
period ended March 31, 2006.
FUTURES CONTRACTS
The Funds may invest in financial futures contracts for the purpose of hedging
their existing securities or securities it intends to purchase against
fluctuations in fair value caused by changes in prevailing markets. Upon
entering into a financial futures contract, the Fund is required to pledge to
the broker an amount of cash and/or other assets equal to a certain percentage
of the contract amount (initial margin deposit). Subsequent payments, known as
"variation margin," are made or received by the Fund each day, depending on the
daily fluctuations in the fair value of the underlying security. The Fund
recognizes a gain or loss equal to the daily variation margin. Should market
conditions move unexpectedly, the Fund may not achieve the anticipated benefits
of the financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts and the underlying hedged assets. The Funds held no
financial futures contracts during the period ended March 31, 2006.
OPTIONS TRANSACTIONS
The Covered Call Fund writes (sells) call options as part of its normal
investment activities. Each Fund may write (sell) put and call options only if
it owns an offsetting position in the underlying security.
When a Fund writes a put or call option, an amount equal to the premium received
is included in the Statement of Assets and Liabilities as a liability. The
amount of the liability is subsequently marked-to-market to reflect the current
market value of the option. Such liability is subject to off balance sheet risks
to the extent of any future increases in market value of the written options. If
an
Notes to Financial Statements 83
Notes to Financial Statements (continued)
option expires on its stipulated expiration date or if the Fund enters into a
closing purchase transaction, a gain or loss is realized. If a written call
option is exercised, a gain or loss is realized for the sale of the underlying
security and the proceeds from the sale are increased by the premium originally
received. If a written put option is assigned, the cost of the security acquired
is decreased by the premium originally received. As a writer of an option, a
Fund has no control over whether the underlying securities are subsequently sold
(call) or purchased (put) and, as a result, bears the market risk of an
unfavorable change in the price of the security underlying the written option.
Each Fund may also purchase put and call options. When a Fund purchases a put or
call option, an amount equal to the premium paid is included in the Fund's
Statement of Assets and Liabilities as an investment, and is subsequently
marked-to-market to reflect the current market value of the option. If an option
expires on the stipulated expiration date or if the Fund enters into a closing
sale transaction, a gain or loss is realized. If the Fund exercises a call, the
cost of the security acquired is increased by the premium paid for the call. If
the Fund exercises a put option, a gain or loss is realized from the sale of the
underlying security, and the proceeds from such a sale are decreased by the
premium originally paid. Written and purchased options are non-income producing
securities.
SHORT SALES
The Long/Short Fund may engage in short sales (selling securities it does not
own) as part of its normal investment activities. These short sales are
collateralized by cash equivalents or securities held with the Fund's prime
broker and segregated account at the Fund's custodian. The collateral required
is determined daily by reference to the market value of the short positions.
Such collateral for the Fund is held by one broker. Dividend expense on short
sales is treated as an expense on the Statement of Operations. Liabilities for
securities sold short are reported at market value in the Statement of Assets
and Liabilities. Such liabilities are subject to off-balance sheet risk to the
extent of any future increases in market value of the securities sold short. The
ultimate liability for securities sold short could exceed the liabilities
recorded in the Statement of Assets and Liabilities. Liabilities for securities
sold short are closed out by purchasing the applicable securities for delivery
to the Fund's prime broker.
INCOME TAXES
The Funds intend to qualify as regulated investment companies under Subchapter M
of the Internal Revenue Code and, accordingly, the Funds will generally not be
subject to federal and state income taxes, or federal excise taxes to the extent
that they intend to make sufficient distributions of net investment income and
net realized capital gains.
84 Notes to Financial Statements
Dividends paid by the Funds from net investment income and distributions of net
realized short-term gains are, for federal income tax purposes, taxable as
ordinary income to shareholders.
Dividends and distributions to shareholders are recorded by the Funds on the
ex-dividend/distribution date. As of March 1, 2006, the Bond Fund distributes
net investment income, if any, to shareholders daily. Prior to that date, the
Bond Fund distributed net investment income, if any, to shareholders monthly.
The Core Equity Fund, Covered Call Fund and Long/Short Fund distribute income,
if any, annually. The Equity Income Fund distributes net investment income, if
any, to shareholders quarterly. The Funds distribute net realized capital gains,
if any, to shareholders at least annually, if not offset by capital loss
carryovers. Income distributions and capital gain distributions are determined
in accordance with income tax regulations, which may differ from accounting
principles generally accepted in the United States of America.
INVESTMENT INCOME
Dividend income is recorded on the ex-dividend date. Non-cash dividends included
in dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Discounts and
premiums on securities purchased are amortized over the life of the respective
securities.
INVESTMENT TRANSACTIONS
Security transactions are accounted for no later than one business day after
trade date. However, for financial reporting purposes security transactions are
accounted for on trade date. Gains and losses on securities sold are determined
on the basis of identified cost.
ALLOCATION OF INCOME AND EXPENSES
Each class of a Fund's shares bears expenses incurred specifically on its behalf
and, in addition, each class bears a portion of general expenses, based upon
relative net assets of each class. Expenses which cannot be directly attributed
to a specific fund in the Trust are apportioned between all funds in the Trust
based upon relative net assets. In calculating the net asset value per share of
each class, investment income, realized and unrealized gains and losses and
expenses other than class specific expenses are allocated daily to each class of
shares based upon the proportion of net assets.
Notes to Financial Statements 85
Notes to Financial Statements (continued)
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEES
ICON Advisers, Inc. ("ICON") serves as investment adviser to the Funds and is
responsible for managing the Funds' portfolios of securities. ICON receives a
monthly management fee that is computed daily at an annual rate of 0.60% of
average daily nets assets of the Bond Fund, 0.75% of average daily net assets of
the Core Equity, Covered Call and Equity Income Funds, and 0.85% of average
daily net assets of the Long/Short Fund. ICON has contractually agreed to limit
its investment advisory fee and/or reimburse certain of the Funds' operating
expenses (exclusive of brokerage, interest, taxes, and extraordinary expenses)
to the extent necessary to ensure that the Funds' operating expenses do not
exceed 1.60% for Class C, 1.00% for Class I and 0.75% for Class Z shares of the
Bond Fund effective January 29, 2005. Prior to that date, ICON had contractually
agreed to limit the expenses of the Bond Fund to 1.90% for Class C, 1.30% for
Class I and 1.05% for Class Z shares. ICON has also contractually agreed to
limit its investment advisory fee and/or reimburse certain operating expenses
(exclusive of brokerage, interest, taxes, and extraordinary expenses) to the
extent necessary to ensure that operating expenses do not exceed 2.20% for Class
C, 1.45% for Class I and 1.20% for Class Z shares of the Covered Call and Equity
Income Funds, and 2.30% for Class C, 1.55% for Class I and 1.30% for Class Z
shares of the Long/Short Fund. The Funds' expense limitation will continue in
effect until at least January 31, 2016.
To the extent ICON reimburses or absorbs fees and expenses, it may seek payment
of such amounts for up to three years after the expenses were reimbursed or
absorbed. A Fund will make no such payment, however, if the total Fund operating
expenses exceed the expense limits in effect at the time the expenses were
reimbursed or at the time these payments are proposed.
As of March 31, 2006 the following amounts are still available for recoupment by
ICON based upon their potential expiration dates:
<Table>
<Caption>
2007 2008 2009
- -----------------------------------------------------------------------------------
ICON Bond Fund $ 9,844 $76,145 $51,437
ICON Covered Call Fund 58,657 67,070 6,459
ICON Equity Income Fund - 11,894 3,084
ICON Long/Short Fund 77,195 - -
</Table>
86 Notes to Financial Statements
TRANSFER AGENT, CUSTODY AND ACCOUNTING FEES
BISYS Fund Services Ohio, Inc. ("BISYS") is the Fund Accounting Agent for the
Funds. For its services, the Trust pays BISYS 0.03% on the first $1.75 billion
of net assets, 0.0175% on net assets over $1.75 billion and up to $5 billion,
and 0.01% on net assets in excess of $5 billion.
Brown Brothers Harriman ("BBH") is the custodian of the Trust's investments. For
domestic custody services, the Trust pays BBH 0.0065% on the first $50 million
of average net assets and 0.0050% on domestic assets above $50 million, plus
certain transaction charges. For foreign custody services, the Trust pays BBH
0.03% on foreign assets plus certain transaction charges.
Boston Financial Data Services, Inc. is the Trust's transfer agent. For these
services, the Trust pays an account fee of $13.25 per open account, $7.00 per
networked account, $1.80 per closed account, plus certain other transaction and
cusip charges.
ADMINISTRATIVE SERVICES
The Trust has entered into an administrative services agreement with ICON
pursuant to which ICON oversees the administration of the Trust's business and
affairs. As of January 31, 2006, this agreement provides for an annual fee of
0.05% on the Funds' first $1.5 billion of average daily net assets, 0.045% on
the next $1.5 billion of average daily net assets, 0.040% on the next $2 billion
of average daily net assets and 0.030% on average daily net assets over $5
billion. Prior to that date, this agreement provided for an annual fee to ICON
of 0.05% on the Funds' first $1.5 billion of average daily net assets and 0.045%
on average daily net assets in excess of $1.5 billion. The administrative
services agreement provides that ICON will not be liable for any error of
judgment, mistake of law, or any loss suffered by the Trust in connection with
matters to which the administrative services agreement relates, except for a
loss resulting from willful misfeasance, bad faith or negligence by ICON in the
performance of its duties.
ICON has entered into a sub-administration agreement with BISYS pursuant to
which BISYS assists ICON with the administration and business affairs of the
Trust. For its services, ICON pays BISYS at an annual rate of 0.025% on the
first $1.75 billion of Trust assets and 0.015% on assets above $1.75 billion.
DISTRIBUTION FEES
The Funds have adopted a Distribution Plan pursuant to Rule 12b-1 under the 1940
Act ("12b-1 Plan") under which the Funds are authorized to compensate the Funds'
distributor, ICON Distributors, Inc. ("IDI") (an affiliate of the adviser) for
the sale and distribution of shares. Under the 12b-1 Plan, Bond Fund Class C
shareholders pay an annual 12b-1 and service fee of 0.85% of average
Notes to Financial Statements 87
Notes to Financial Statements (continued)
daily net assets and Class I shareholders pay an annual 12b-1 fee of 0.25% of
average daily net assets. The shareholders of the other Funds pay an annual
12b-1 and service fee of 1.00% of average daily net assets for Class C shares
and an annual 12b-1 and service fee of 0.25% of average daily net assets for
Class I shares. The total amount paid under the 12b-1 plans by the Funds is
shown in the Statement of Operations.
RELATED PARTIES
Certain Officers and Directors of ICON are also Officers and Trustees of the
Funds; however, such Officers and Trustees (with the exception of the Chief
Compliance Officer, "CCO") receive no compensation from the Funds. The CCO's
salary is paid 90% by the Funds and 10% by the Adviser. For the period ended
March 31, 2006, the total related amounts paid by the Trust under this
arrangement are included in Other Expenses on the Statements of Operations.
Some of the 12b-1 amounts received by IDI, discussed in the Distribution Fees,
have been used to offset various shareholder servicing costs incurred by the
Advisor. For the period ended March 31, 2006 this amount was $73,221.
3. LINE OF CREDIT
The Funds entered into Lines of Credit agreements with BBH; the maximum
borrowing is limited to 25% of eligible securities held by the portfolio subject
to a maximum borrowing limit by the Trust of $115 million. Interest is charged
at LIBOR plus 2.00% which was 6.83% at March 31, 2006.
<Table>
<Caption>
AVERAGE BORROWING
(10/1/05-3/31/06)
- ----------------------------------------------------------------------------
ICON Bond Fund** $647,137
ICON Core Equity Fund 229,706
ICON Covered Call Fund** 423,803
ICON Equity Income Fund 332,622
ICON Long/Short Fund 214,426
</Table>
** Fund had outstanding borrowings as of March 31, 2006.
88 Notes to Financial Statements
4. OPTIONS CONTRACTS WRITTEN
The number of option contracts written and the premiums received by the ICON
Covered Call Fund during the period ended March 31, 2006, were as follows:
<Table>
<Caption>
NUMBER OF PREMIUMS
CONTRACTS RECEIVED
- -------------------------------------------------------------------------------------
Options outstanding, beginning of period 13,261 $ 2,471,399
Options written during period 39,371 12,178,943
Options expired during period (315) (62,599)
Options closed during period (37,119) (9,946,126)
Options exercised during period - -
------- -----------
Options outstanding, end of period 15,198 $ 4,641,617
======= ===========
</Table>
5. FEDERAL INCOME TAX
Income and capital gain distributions are determined in accordance with income
tax regulations that may differ from accounting principles that are generally
accepted in the United States of America. These differences are due to differing
treatments for items such as net short-term gains, deferrals of wash losses,
foreign currency transactions, net investment losses, and capital loss
carryforwards.
Accumulated capital losses noted below represent net capital loss carryforwards
as of September 30, 2005 that may be available to offset future realized capital
gains and thereby reduce future taxable income distributions.
<Table>
<Caption>
FUND AMOUNTS EXPIRES
- ----------------------------------------------------------------------------
ICON Covered Call Fund $621,989 2013
ICON Long/Short Fund 387,875 2013
</Table>
During the year ended September 30, 2005, the following capital loss
carryforwards were used:
<Table>
ICON Core Equity Fund $8,138,524
</Table>
Net capital losses incurred after October 31, and within the taxable year are
deemed to arise on the first business day of the Funds' next taxable year. For
the year ended September 30, 2005, the fund deferred to October 1, 2005 post
October capital losses:
<Table>
<Caption>
CAPITAL
FUND LOSSES
- -----------------------------------------------------------------------
ICON Bond Fund $ 31,259
ICON Covered Call Fund 18,744
ICON Long/Short Fund 898,217
</Table>
Notes to Financial Statements 89
Notes to Financial Statements (continued)
The aggregate gross unrealized appreciation and depreciation of securities held
by the Funds and the total cost of securities for federal tax purposes as of
March 31, 2006 were as follows:
<Table>
<Caption>
UNREALIZED UNREALIZED NET APPRECIATION
COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
- -----------------------------------------------------------------------------------------
ICON Bond Fund $ 84,826,610 $ 91,795 $(1,212,984) $(1,121,189)
ICON Core Equity Fund 177,139,150 37,498,517 (2,625,413) 34,873,104
ICON Covered Call Fund 56,289,189 10,595,046 (2,293,701) 8,301,345
ICON Equity Income Fund 122,641,739 20,136,505 (1,530,647) 18,605,858
ICON Long/Short Fund 103,514,052 18,155,481 (1,027,601) 17,127,880
</Table>
6. SEGREGATED ACCOUNT AND SHORT SALE COLLATERAL
As of March 31, 2006 the ICON Long/Short Fund had securities or cash deposits
with the counterparty to the short sales in the amount of $1,315,205 as
collateral for the short sales.
7. SUBSEQUENT EVENT
Effective June 1, 2006, class C shares will impose a 1% contingent deferred
sales charge ("CDSC") on shares redeemed within one-year of purchase. Shares
purchased prior to June 1, 2006 will not be subject to the CDSC.
90 Notes to Financial Statements
Other Information (unaudited)
PORTFOLIO HOLDINGS
A list of each ICON Fund's Top 10 holdings is available at www.iconadvisers.com
on or about 15 days following each month-end. Each ICON Fund also files a
complete schedule of portfolio holdings for the first and third quarters of its
fiscal year with the SEC on Form N-Q. The ICON Funds' Forms N-Q are available at
www.sec.gov or may be reviewed and copied at the Commission's Public Reference
Room in Washington, DC. Information about the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
PROXY VOTING
A description of the policies and procedures the ICON Funds use to vote proxies
is available at www.iconadvisers.com; without charge upon request by calling
1-800-764-0442; or on the SEC's website at www.sec.gov.
Information about how the ICON Funds voted proxies related to each Fund's
portfolio securities during the 12-month period ended June 30 is available at
www.iconadvisers.com or on the SEC's website at www.sec.gov.
FOR MORE INFORMATION
This report is for the general information of the Funds' shareholders and is not
authorized for distribution to prospective investors unless preceded or
accompanied by a current prospectus. You may obtain a copy of the prospectus,
which contains information about the investment objectives, risks, charges,
expenses, and share classes of each ICON Fund, by visiting www.iconadvisers.com
or by calling 1-800-764-0442. Please read the prospectus carefully before
investing.
ICON Distributors, Inc., Distributor.
Other Information 91
THIS PAGE INTENTIONALLY LEFT BLANK
(ICON FUNDS LOGO)
<Table>
For more information about the ICON Funds, contact us:
By Telephone 1-800-764-0442
By Mail ICON Funds
P.O. Box 55452
Boston, MA 02205-8165
In Person ICON Funds
5299 DTC Boulevard, 12(th) Floor
Greenwood Village, CO 80111
On the Internet www.iconadvisers.com
By E-Mail info@iconadvisers.com
</Table>
(ICON FUNDS LOGO)
1-800-764-0442
www.iconadvisers.com
I-149-DIV
March 31, 2006
(unaudited)
Investment Update
ICON INTERNATIONAL FUNDS
ICON ASIA-PACIFIC REGION FUND
ICON EUROPE FUND
ICON INTERNATIONAL EQUITY FUND
Semiannual Report
(ICON FUNDS LOGO)
Table of Contents
<Table>
ABOUT THIS REPORT 2
MESSAGE FROM ICON FUNDS 4
MANAGEMENT OVERVIEWS AND SCHEDULES OF INVESTMENTS
ICON Asia-Pacific Region Fund 7
ICON Europe Fund 16
ICON International Equity Fund 25
SIX MONTH HYPOTHETICAL EXPENSE EXAMPLE 34
FINANCIAL STATEMENTS 36
FINANCIAL HIGHLIGHTS 42
NOTES TO FINANCIAL STATEMENTS 44
OTHER INFORMATION 53
</Table>
[RECYCLE LOGO]
About This Report
HISTORICAL RETURNS
All total returns mentioned in this report account for the change in a Fund's
per-share price and the reinvestment of any dividends, capital gain
distributions, and tax return of capital. If your account is set up to receive
Fund distributions in cash rather than to reinvest them, your actual return may
differ from these figures. The Funds' performance results do not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or on the
redemption of Fund shares. The Adviser reimbursed certain fees for the
International Equity Fund. If not for these reimbursements, performance would
have been lower.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance results represent
past performance, and current performance may be higher or lower. Please call
1-800-764-0442 or visit www.iconadvisers.com for performance results current to
the most recent month-end.
PORTFOLIO DATA
This report reflects ICON's views, opinions and portfolio holdings as of March
31, 2006, the end of the reporting period. The information is not a complete
analysis of every aspect of any sector, industry, security or the Funds.
Opinions and forecasts regarding industries, companies and/or themes, and
portfolio composition and holdings, are subject to change at any time based on
market and other conditions, and should not be construed as a recommendation of
any specific security. Each Fund's holdings as of March 31, 2006 are included in
each Fund's Schedule of Investments.
Certain companies' stock performance during the period is mentioned throughout
the Management Overviews. While ICON's quantitative investment methodology
primarily considers company-specific factors beyond financial data, various
company factors may impact a stock's performance, and therefore, Fund
performance.
There are risks associated with mutual fund investing, including the loss of
principal. There is no assurance that the investment process will consistently
lead to successful results. Investments in foreign securities may entail unique
risks, including political, market and currency risks. An investment in a region
fund may involve greater risk and volatility than a diversified fund. An
investment concentrated in sectors and industries may involve greater risk and
volatility than a more diversified investment. There are also risks associated
with small- and mid-cap investing, including limited product lines, less
liquidity and small market share.
ICON'S INVESTMENT APPROACH
The Funds employ an all-cap investment strategy, identifying securities we
believe are underpriced regardless of their location on the conventional style
grid. Our system is not limited by restrictions on market capitalization or
2 About This Report
investment style, and searches for potential industry leadership wherever and
whenever it may emerge.
The Funds do not utilize static valuation metrics such as price-to-earnings
(P/E) as we believe these measures do not adequately represent intrinsic value,
which can vary over time. Instead, we calculate proprietary value-to-price (V/P)
ratios that considers the effects of historical and projected earnings,
projected growth, risk and interest rates (opportunity cost). By combined our
determination of value with relative strength (RS), we aim to compute leading
industry themes that are poised, in our view, to outperform the sector
benchmark.
For all corporate earnings and other financial information we rely on the
integrity of the publicaly available financial information provided to the
United States Securities and Exchange Commission.
COMPARATIVE INDEXES
The comparative indexes discussed in this report are meant to provide a basis
for judging a Fund's performance against specific securities indexes. Each index
shown accounts for both change in the security price and reinvestment of
dividends and distributions (except as noted), but does not reflect the costs of
managing a mutual fund. The total return figures for the Morgan Stanley Capital
International (MSCI) indexes assume change in security prices and the deduction
of local taxes. The Funds' portfolios may significantly differ in holdings and
composition from the indexes. Individuals cannot invest directly in an index.
- - The unmanaged MSCI Europe Index comprises approximately 600 stocks traded in
developed markets from 15 European countries. The capitalization-weighted
index attempts to capture at least 60% of investable capitalization in those
markets subject to constraints governed by industry representation, maximum
liquidity, maximum float, and minimum cross-ownership.
- - The unmanaged MSCI All Country Pacific Index comprises stocks traded in the
developed and emerging markets of the Pacific Basin (Australia, China, Hong
Kong, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore,
Taiwan and Thailand). The capitalization-weighted index attempts to capture
at least 60% of investable capitalization in those markets subject to
constraints governed by industry representation, maximum liquidity, maximum
float, and minimum cross-ownership.
- - The MSCI All Country World Index ex-United States (ACWI ex-U.S.) is a leading
unmanaged benchmark of international stock performance. The
capitalization-weighted index is representative of the performance of
securities of companies located in developed and emerging markets outside of
the United States.
- - The unmanaged Bloomberg European 500 Index measures the weighted average
performance in U.S. dollars of the 500 most highly capitalized European
companies.
Index returns and statistical data included in this report are provided by
Bloomberg and FactSet Research Systems.
About This Report 3
Message from ICON Funds
- --------------------------------------------------------------------------------
Conflicting forces convinced many investors that the global equity markets were
in the throes of a sideways trading range.
- --------------------------------------------------------------------------------
Dear ICON Shareholder:
Thank you for your continued investment in the ICON International Funds and
welcome to those of you receiving this report for the first time. We are pleased
to report that for the one-year period ending December 31, 2005, both the ICON
Asia-Pacific Region Fund and the ICON International Equity Fund received a 2005
Lipper Performance Achievement Certificate as the best-performing fund in their
respective categories.
ICON employs a value-based, bottom-up investment system in tactical pursuit of
industries we believe are poised to outperform the broader market. We are
quantitative, unemotional and objective, and find strength in numbers.
Whether you invest in our International Funds, such as the ICON Asia-Pacific
Region Fund, our Sector Funds, such as the ICON Energy Fund, or our U.S.
Diversified Funds, such as the ICON Core Equity Fund, each is powered by ICON's
unique systematic discipline.
A CLASSIC STOCK MARKET BATTLE
"Strength in numbers" is an apt phrase to describe the fiscal six-month period,
as conflicting forces convinced many investors that global equity markets were
in the throes of a sideways trading range. The fact is, international stocks
rallied significantly amid a mid-October dip and brief but volatile pullback in
Asian markets later in the period. With many foreign issues trading at deeper
discounts than their U.S. counterparts, and in some instances involving equal or
less risk, investors once again realized the benefits of diversification through
overseas investing. Despite posting strong gains against a backdrop of
widespread guessing and reacting, the move up was stealth-like, so quiet that
the word "rally" was conspicuous by its absence.
Much of the guessing was focused on the likelihood of continued monetary
tightening, though most of Asia, Japan being the primary example, was raising
rates from near-zero levels, setting this area apart from the rest of the world.
Europe also lifted rates from historically low levels, with nascent tightening
yet to significantly impact value in the region. At the same time, investors
reacted to movements in energy prices, even though we had not seen appreciable
increases in inflation or long-term interest rates.
What we did see was a classic stock market battle that periodically pits
prosperity and healthy corporate earnings against higher interest rates. Over
the past few years, many market observers feared that events such as terrorism,
war, hurricanes and rising oil prices would stall the global economy. However,
as investors realized that economic prosperity and higher earnings defied these
event-related concerns, stocks prices have trended higher.
4 Message from ICON Funds
We find strength in numbers, reflecting the fact
that we are quantitative, unemotional and objective.
(CRAIG T. CALLAHAN PHOTO)
Craig T. Callahan
President
RACING TO CATCH UP WITH VALUE
- --------------------------------------------------------------------------------
We believe recent uptrends in long-term interest rates have acted as a drag on
global markets, inhibiting the normal growth of equity valuations.
- --------------------------------------------------------------------------------
While stock prices have continued to move higher, we believe recent uptrends in
long-term interest rates have acted as a drag on global markets, inhibiting the
growth of equity valuations to a certain extent. Although the rise in local bond
yields has been modest compared to increases in short-term lending rates,
intrinsic value has declined according to our system.
Although further monetary tightening remains a distinct possibility, our system
is designed in such a way that we do not have to predict the future. We simply
have to recognize underpricing and overpricing when either condition occurs.
While interest rate factors have cut into equity valuations, we believe these
effects have been offset by rising earnings. Should conditions change, and value
no longer supports higher equity prices, stocks could be viewed as overpriced
and call for a more cautious stance on our part.
To date, this has not come to pass, and we continue to view stock prices, in
general, to be below our estimate of intrinsic value. As long as this is the
case, we will continue to ride out the volatility, enabling investors to
participate in what are typically unpredictable market advances, where price
races to catch up with value.
BULLISH POSTURE PROVED CORRECT
It is our contention that investors have been continually fooled on the upside
by the prosperity of cyclical companies. We have seen these industry and sector
themes remain in place for the past three years, and this most recent reporting
period was no exception. Industries in economically sensitive areas such as
Materials and Industrials led the way, while industries in the more defensive-
oriented Utilities and Healthcare sectors lagged their cyclical peers.
Given the consistently strong relative performance of the ICON International
Funds, this comes as no surprise to us. Based on valuation, our bullish, fully
Message from ICON Funds 5
Message from ICON Funds (continued)
invested posture proved to be absolutely correct, and we are pleased to have
shared this success with you.
- --------------------------------------------------------------------------------
Based on valuation, our bullish, fully invested posture proved to be absolutely
correct.
- --------------------------------------------------------------------------------
Still, it is important to remember that value is never stagnant. Value moves as
earnings grow, and so far robust earnings growth has won the battle versus
rising interest rates. Whether this continues to be the case is not something we
choose to predict. We remain highly confident, however, in the ability of our
system to identify theme changes when and if they occur.
In closing, we are most grateful for the privilege of guiding you through these
challenging markets. For current market updates, as well as up-to-date Fund
performance and account information, we invite you to visit our website at
www.iconadvisers.com.
Yours truly,
/s/ Craig T. Callahan
Craig T. Callahan, DBA
Chairman of the Board of Trustees and President of the Adviser
Consider the investment objectives, risks, charges, expenses, and share classes
of each ICON Fund carefully before investing. The prospectus contains this and
other information about the Funds and is available by visiting
www.iconadvisers.com or calling 1-800-764-0442. Please read the prospectus
carefully before investing.
An investment in a non-diversified sector fund or region fund may involve
greater risk and volatility than a more diversified fund. Investments in foreign
securities may entail unique risks, including political, market, and currency
risks. The ICON system relies on the integrity of financial statements released
to the market as part of our analysis.
6 Message from ICON Funds
Management Overview
ICON Asia-Pacific Region Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 99.4%
Top 10 Equity Holdings 18.9%
Number of Stocks 106
Short-Term Investments 0.9%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Zinifex, Ltd. 2.5%
High Tech Computer Corp. 2.0%
Komatsu, Ltd. 1.9%
Toyota Motor Corp. 1.9%
Hopson Development Holdings, Ltd. 1.9%
The Japan Steel Works, Ltd. 1.8%
Mitzuho Financial Group, Inc. 1.8%
Lasertec Corp. 1.7%
Park24 Co., Ltd. 1.7%
Hengan International Group Co., Ltd. 1.7%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Asia-Pacific Region Fund appreciated 20.03% for the six-month period
ended March 31, 2006, outpacing its benchmark, the MSCI All Country Pacific
Index, which returned 16.32% over the same period. Total returns for other
periods as of March 31, 2006 appear on page 12.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. With shares generally trading at deeper discounts and thus closing a wider
valuation gap, Asian markets on the whole outperformed those in the U.S.
during the period, continuing an overall show of strength in the
international arena that has been in place for some time now.
While the Fund does not utilize market capitalization as a valuation measure,
the portfolio's tilt toward mid- and small-cap stocks relative to the
predominantly large-cap benchmark served to enhance performance, as stock
selection within these smaller capitalization ranges experienced more
sizeable returns versus many large-cap securities. Additionally, the Fund's
focus on leading industry themes in the Materials and Industrials sectors
boosted relative performance, while currency fluctuations produced a
negligible effect on overall results.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Fueling performance was the continued strong showing in cyclical sectors such
Materials and Industrials. In particular, the globally-strong Materials area
contributed most significantly to the Fund's relative outperformance of its
benchmark, with an active overweight in groups such as diversified metals &
mining, steel and gold leading the way. As far as Industrials, this sector
showed a strong combination of industry value and strength, and the Fund's
tilt toward industrial machinery proved highly favorable.
In contrast, Information Technology was the Fund's poorest-performing sector
during the period on a relative basis. Weakness in internet software
services, due in part to the previously mentioned accounting scandal at
Livedoor Co. Ltd. (which the Fund held), along with volatility in the
semiconductor space, combined to dampen relative returns. Meanwhile, the
Fund's active underweight in Telecommunication & Utilities, specifically the
avoidance of wireless telecommunication services and integrated
telecommunication services, was particularly beneficial to performance.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE ASIA-PACIFIC REGION?
A. Even though valuations have tightened in recent years, our analysis continues
to rank the Asia-Pacific region as the most undervalued on a global basis
given its healthy upside potential. Following January's fear-based
Management Overview 7
Management Overview (continued)
ICON Asia-Pacific Region Fund
[SCOTT SNYDER PHOTO]
Scott Snyder
Portfolio Manager
correction, the region appears to be back on track, with its fundamentals
intact. While country selection is not a primary consideration of our
investment process, as a secondary factor Japan remains the most attractive,
while China and Hong Kong are also compelling.
In light of historically low interest rates, nascent monetary tightening has
yet to impact value in the region. Although this situation bears close
watching, we continue to focus on industries showing attractive discounts and
market leadership. Financials, Materials and Industrials have emerged, as
domestic demand echoes regional expectations for recovery. Moreover,
Materials and Industrials are mirroring infrastructure spending and resource
demand already occurring in the region. Although demonstrating value,
Telecommunication & Utilities, Consumer Staples and Healthcare are not yet
signaling leadership, indicating an extension of the current cyclical theme.
PERFORMANCE HIGHLIGHTS
- - The Fund's valuation-based tilt toward mid- and small-cap stocks served to
enhance relative performance.
- - A focus on leading cyclical industry themes boosted relative performance,
while currency fluctuations had a negligible effect.
- - Fueling performance was the continued strong showing in Materials and
Industrials, while Information Technology was the Fund's poorest-performing
sector on a relative basis.
8 Management Overview
COUNTRY COMPOSITION
March 31, 2006
<Table>
Japan 57.3%
China 10.5%
Hong Kong 8.2%
South Korea 7.6%
Taiwan 5.2%
Australia 5.1%
Indonesia 3.1%
Singapore 2.0%
New Zealand 0.4%
</Table>
Percentages are based upon net assets.
SECTOR COMPOSITION
March 31, 2006
<Table>
Materials 20.8%
Industrials 19.5%
Financial 19.2%
Information Technology 16.2%
Consumer Discretionary 11.3%
Leisure and Consumer Staples 5.6%
Energy 4.1%
Healthcare 1.4%
Telecommunication and Utilities 1.3%
</Table>
Percentages are based upon net assets.
Management Overview 9
Management Overview (continued)
ICON Asia-Pacific Region Fund
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Diversified Banks 7.0%
Diversified Metals & Mining 6.1%
Real Estate Management & Development 5.2%
Industrial Machinery 4.9%
Steel 4.1%
Semiconductor Equipment 3.8%
Auto Parts & Equipment 3.6%
Computer Hardware 3.5%
Investment Banking & Brokerage 3.5%
Trading Companies & Distributors 2.9%
Semiconductors 2.7%
Consumer Electronics 2.4%
Gold 2.4%
Specialty Chemicals 2.3%
Commodity Chemicals 2.1%
Diversified Chemicals 2.1%
Heavy Electrical Equipment 2.1%
Oil & Gas Exploration & Production 2.1%
Automobile Manufacturers 1.9%
Construction & Farm Machinery & Heavy Trucks 1.9%
Electronic Equipment Manufacturers 1.8%
Office Electronics 1.8%
Diversified Commercial & Professional Services 1.7%
Life & Health Insurance 1.7%
Personal Products 1.7%
</Table>
10 Management Overview
INDUSTRY COMPOSITION (CONTINUED)
<Table>
March 31, 2006
Railroads 1.6%
Commercial Printing 1.4%
Electrical Components & Equipment 1.4%
Leisure Products 1.4%
Apparel Accessories & Luxury Goods 1.3%
Communications Equipment 1.3%
Electronic Manufacturing Services 1.3%
Gas Utilities 1.3%
Construction & Engineering 1.2%
Aluminum 1.1%
Education Services 1.1%
Integrated Oil & Gas 1.1%
Consumer Finance 0.9%
Oil & Gas Equipment & Services 0.9%
Photographic Products 0.9%
Property & Casualty Insurance 0.9%
Health Care Distributors 0.7%
Soft Drinks 0.7%
Construction Materials 0.6%
Apparel Retail 0.5%
Health Care Equipment 0.5%
Home Furnishing Retail 0.5%
Tobacco 0.5%
Agriculture Products 0.4%
Air Freight & Logistics 0.4%
Health Care Supplies 0.2%
Percentages are based upon net assets.
</Table>
Management Overview 11
Management Overview (continued)
ICON Asia-Pacific Region Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTH* 1 YEAR 5 YEARS 2/25/97
- -------------------------------------------------------------------------------------------
ICON Asia-Pacific Region Fund 20.03% 46.77% 8.63% 3.46%
- -------------------------------------------------------------------------------------------
MSCI All Country Pacific Index 16.32% 33.06% 11.50% 3.75%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
(LINE GRAPH)
<Table>
<Caption>
ICON ASIA - PACIFIC REGION FUND MSCI ALL COUNTRY PACIFIC INDEX
------------------------------- ------------------------------
2/25/97 9550 9496
3/31/97 11320 11163
9940 9656
8270 7530
8310 7839
3/31/98 7360 7011
6089 6079
7759 7789
8569 8616
3/31/99 9809 9715
10870 10541
13170 12277
11620 12234
3/31/00 10870 11455
10251 10133
9611 8764
9011 8111
3/31/01 8711 8183
6811 6673
6766 6946
6625 7264
3/31/02 6424 7446
5701 6499
6053 6356
5801 5976
3/31/03 6584 6819
7648 8066
8695 8921
9067 10020
3/31/04 8323 9510
8222 9291
9044 10578
9287 10505
3/31/05 9519 10439
11356 12017
13509 13059
3/31/06 13631 13978
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 2/25/97 to a
$10,000 investment made in an unmanaged securities index on that date. The
Fund's performance in this chart and the performance table assumes the
reinvestment of dividends, capital gain distributions and tax return of capital
but does not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or on the redemption of Fund shares.
12 Management Overview
Schedule of Investments
ICON Asia-Pacific Region Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
COMMON STOCKS (99.4%)
13,300 Advantest Corp. $ 1,580,318
46,000 Aisin Seiki Co.,
Ltd. 1,789,856
1,622,000 Aluminum Corp. of
China, Ltd. 1,704,582
1,650,000 Angang New Steel
Company, Ltd. 1,548,820
26,000 Canon, Inc. 1,716,151
117 Central Japan
Railway Co. 1,154,217
56,300 Cheil Industries,
Inc. 2,059,051
2,978,000 China
Construction
Bank(a) 1,386,997
859,000 China Life
Insurance Co.,
Ltd.(a) 1,089,103
2,908,000 China Resources
Land, Ltd. 2,169,732
33,000 Chiyoda Corp. 769,366
1,600,000 CNOOC, Ltd. 1,246,218
174,000 Daido Steel Co.,
Ltd. 1,770,684
39,000 Daifuku Co., Ltd. 641,240
159,000 Daihen Corp. 821,885
44,000 Daishin
Securities Co.(a) 914,502
102,000 Daiwa Securities
Group, Inc. 1,368,939
45,000 Denso Corp. 1,779,075
1,206,000 Dongfang
Electrical
Machinery Co.,
Ltd. 2,452,817
167 East Japan
Railway Co. 1,237,098
33,100 Elpida Memory,
Inc.(a) 1,182,696
1,076,000 Foxconn
International
Holdings, Ltd.(a) 2,014,560
186,000 Fujikura, Ltd. 2,103,394
135,000 Fujitsu, Ltd. 1,134,621
1,090,000 Global Bio-chem
Technology Group
Co., Ltd. 571,601
1,610,000 Hengan
International
Group Co., Ltd. 2,549,192
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
114,000 High Tech
Computer Corp. $ 3,109,224
17,000 Hitachi Chemical
Co., Ltd. 488,329
125,291 Hon Hai Precision
Industry Co.,
Ltd. 773,845
1,334,000 Hopson
Development
Holdings, Ltd. 2,874,775
32,400 Hoya Corp. 1,304,889
63,000 Hyundai
Securities Co.,
Ltd.(a) 865,093
38,000 Hyundai Steel Co. 1,131,654
93,400 Industrial Bank
of Korea 1,726,071
70 Inpex Corp. 593,365
34,100 Iriso Electronics
Co., Ltd. 1,368,337
263,000 Ishikawajima-
Harima Heavy
Industries Co.,
Ltd. 834,190
30,300 Ito En, Ltd. 1,061,500
123,000 Itochu Corp. 1,058,543
225 Japan Tobacco,
Inc. 791,931
303,000 Johnson Health
Tech. Co., Ltd. 1,516,428
36,700 JSR Corp. 1,091,074
675 K.K. DaVinci
Advisors(a) 919,361
323,000 Kagara Zinc,
Ltd.(a) 812,332
314,000 Kawasaki Heavy
Industries, Ltd. 1,102,740
292,000 Kobe Steel, Ltd. 1,110,597
68,000 Kokusai
Securities
Company, Ltd. 1,091,846
155,000 Komatsu, Ltd. 2,956,751
12,700 Kookmin Bank 1,088,883
708,000 KS Energy
Services, Ltd. 1,349,867
84,250 Largan Precision
Co., Ltd. 1,362,257
74,600 Lasertec Corp. 2,609,002
65,800 LG International
Corp. 1,618,131
632,000 Li Ning Co., Ltd. 605,584
206,600 Mainfreight, Ltd. 597,634
</Table>
Schedule of Investments 13
Schedule of Investments (continued)
ICON Asia-Pacific Region Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
101,000 Matsushita
Electric
Industrial Co.,
Ltd. $ 2,231,995
29,900 Mitsubishi Corp. 681,859
383,000 Mitsubishi
Materials Corp. 2,051,243
241,000 Mitsubishi Rayon
Co., Ltd. 1,972,854
112 Mitsubishi UFJ
Financial Group,
Inc. 1,703,547
75,000 Mitsui & Co.,
Ltd. 1,083,402
340 Mizuho Financial
Group, Inc. 2,781,452
13,900 Nagaileben Co.,
Ltd. 366,891
80,588 NGK Spark Plug
Co., Ltd. 1,878,129
94,000 Nissan Chemical
Industries, Ltd. 1,594,664
57,000 Nissha Printing
Co., Ltd. 2,144,439
15,200 Nitori Co., Ltd. 790,056
8,000 Nitto Denko Corp. 678,603
48,000 Nomura Holdings,
Inc. 1,063,521
4,500 Orix Corp. 1,397,894
814,000 Oxiana, Ltd.(a) 1,563,254
76,000 Park24 Co., Ltd. 2,600,523
1,592,000 PetroChina Co.,
Ltd. 1,669,182
3,804,000 PICC Property and
Casualty Co.,
Ltd. 1,382,103
590,000 Ping An Insurance
(Group) Company
of China, Ltd. 1,519,212
485,000 Ports Design,
Ltd. 711,625
3,776,000 PT Aneka Tambang 1,812,661
1,876,000 PT Perusahaan Gas
Negara 2,070,442
332,000 PT Semen Gresik 932,513
1,188,000 Raffles Education
Corp., Ltd. 1,692,353
53,000 Ricoh Co. Ltd. 1,034,239
14,300 Rio Tinto, Ltd. 806,536
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
33,500 Samsung
Engineering Co.,
Ltd. $ 1,126,775
73,000 Sanken Electric
Co., Ltd. 1,244,597
2,326,000 Shanghai Forte
Land Co., Ltd. 1,210,633
55,300 Shinko Electric
Industries Co.,
Ltd. 1,670,236
389,000 Showa Denko K.K 1,728,385
30,900 Sony Corp. 1,423,758
107,000 Sumitomo Heavy
Industries, Ltd. 1,026,353
176,000 Sumitomo Metal
Industries, Ltd. 755,900
191 Sumitomo Mitsui
Financial Group,
Inc. 2,108,670
19,000 Sysmex Corp. 831,448
55,000 Teikoku Oil Co.,
Ltd. 663,958
412,000 The Japan Steel
Works, Ltd. 2,806,920
75,000 Toho
Pharmaceutical
Co., Ltd. 1,106,552
82,000 Tokuyama Corp. 1,390,285
24,100 Tokyo Electron,
Ltd. 1,657,399
63,000 Tokyu Land Corp. 563,628
148,000 Toray Industries,
Inc. 1,209,493
205,000 Toshiba Corp. 1,191,524
53,200 Toyota Motor
Corp. 2,897,189
57,800 TSM Tech Co.,
Ltd. 1,062,636
870,000 Unimicron
Technology Corp. 1,264,196
24,495 Woodside
Petroleum, Ltd. 796,364
2,654,000 Zijin Mining
Group Co., Ltd. -
Class H 2,087,982
565,803 Zinifex, Ltd. 3,870,975
------------
TOTAL COMMON STOCKS (COST
$131,255,961) 152,481,996
</Table>
14 Schedule of Investments
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
SHORT-TERM INVESTMENTS (0.9%)
$1,319,114 Brown Brothers
Harriman Time
Deposit,
4.07%, 04/03/06# $ 1,319,114
993 Brown Brothers
Harriman Time
Deposit -
Australian
Dollar,
4.45%, 04/03/06# 993
508 Brown Brothers
Harriman Time
Deposit - Hong
Kong Dollar,
2.90%, 04/03/06# 508
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
$ 77 Brown Brothers
Harriman Time
Deposit - New
Zealand Dollar,
6.25%, 04/03/06# $ 77
226 Brown Brothers
Harriman Time
Deposit -
Singapore Dollar,
2.37%, 04/03/06# 226
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $1,320,918) 1,320,918
------------
TOTAL INVESTMENTS (COST
$132,576,879) 100.3% 153,802,914
LIABILITIES LESS OTHER ASSETS
(0.3)% (381,462)
------------
TOTAL NET ASSETS 100.0% $153,421,452
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
v All common stocks were fair valued (Note 1) as of March 31, 2006 unless noted
with a v. Total value of common stocks fair valued was $152,481,996.
Schedule of Investments 15
Management Overview
ICON Europe Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 94.6%
Top 10 Equity Holdings 18.2%
Number of Stocks 120
Short-Term Investments 12.3%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Vedanta Resources PLC 2.4%
USG People N.V. 2.3%
Vallourec S.A. 2.3%
Brunel International N.V. 2.0%
Kensington Group PLC 1.7%
Osterrichische
Elekrizitaitswirts
AG - Class A 1.6%
Salzgitter AG 1.6%
Option N.V. 1.5%
Buzzi Unicem S.p.A. 1.4%
Credit Suisse Group 1.4%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Europe Fund appreciated 21.15% for the six-month period ended March
31, 2006, outpacing returns of 16.59% for the Bloomberg European 500 Index
and 13.04% for the MSCI Europe Index, the Fund's benchmarks, over the same
period. Total returns for other periods as of March 31, 2006 appear on page
21.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. Continuing an international show of strength that has been in place for
several years, European bourses outperformed the broad U.S. market for the
period. Furthermore, the region outpaced all others during the latter half,
with European shares having traded at deeper discounts relative to the U.S.
and thus closing a wider valuation gap.
While the Fund does not utilize market capitalization as a valuation measure,
our methodology led us to actively tilt the portfolio toward mid- to
large-capitalization stocks, although this positioning was still relatively
underweight versus the predominantly large-cap dominated benchmark. The
Fund's relative performance benefited significantly from an overweighting in
small- and mid-cap issues, along with effective stock and industry selection
in the large-cap space. At the same time, currency exchange fluctuations had
a negligible effect on overall returns.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Relative to the benchmark, Fund performance was driven by continued strength
in the actively overweighted Industrials sector, benefiting greatly from the
human resource & employment services area - despite high regional
unemployment - and the industrial machinery group. At the same time, the
globally thematic Materials sector lifted returns, as active overweights in
the diversified metals & mining and steel groups augmented performance.
From an industry perspective, the Fund's underweighting in the benchmark-
dominated integrated oil & gas group minimized the pullback seen in Energy,
while the portfolio's overweighting in specialized finance, specifically
exchange-related issues, was rewarded. Moreover, an underweight in the
positively performing diversified banks industry hurt relative performance,
as this area comprised the largest benchmark weighting. Other laggards
included IT consulting & other services and health care equipment.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE EUROPEAN MARKET?
A. European stocks have now virtually closed a longstanding valuation gap that
has existed with their U.S. counterparts. While we still view the broad
16 Management Overview
[SCOTT SNYDER PHOTO]
Scott Snyder
Portfolio Manager
region as undervalued, valuations are as tight as we have witnessed in nearly
two years. Meanwhile, monetary tightening has not significantly impacted
value in the region, although that could change as we move forward.
In light of this, our focus remains on industries demonstrating attractive
discounts and market leadership. With the cyclical theme still in place, we
see no compelling reason to change the Fund's tilt toward Materials and
Industrials. While Financials remain strong, certain areas have become
expensive, and will be monitored closely. As the period concluded, we were
finding the deepest discounts in Energy and recently lagging areas such as
Telecommunication & Utilities and Consumer Staples. Although it is not yet
necessarily their time to lead, we will keep a close eye on these groups
should a theme change begin to emerge.
PERFORMANCE HIGHLIGHTS
- - The Fund's relative performance benefited from an overweight in small- and
mid-cap issues, and effective stock and industry selection in the large-cap
space.
- - Fund performance was driven by continued strength in the actively
overweighted Industrials sector and globally thematic Materials group.
Management Overview 17
Management Overview (continued)
ICON Europe Fund
COUNTRY COMPOSITION
March 31, 2006
<Table>
United Kingdom 20.0%
Germany 16.8%
Netherlands 11.4%
France 10.9%
Switzerland 8.7%
Greece 5.3%
Belgium 4.6%
Italy 4.5%
Austria 3.4%
Denmark 1.9%
Finland 1.8%
Poland 1.5%
Sweden 1.4%
Norway 1.1%
Spain 0.8%
Portugal 0.5%
</Table>
Percentages are based upon net assets.
SECTOR COMPOSITION
March 31, 2006
<Table>
Financial 26.9%
Industrials 20.8%
Materials 14.5%
Leisure and Consumer Staples 7.8%
Consumer Discretionary 7.4%
Telecommunication and Utilities 6.9%
Energy 3.9%
Information Technology 3.7%
Healthcare 2.7%
</Table>
Percentages are based upon net assets.
18 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Diversified Banks 10.0%
Diversified Metals & Mining 4.4%
Human Resource & Employment Services 4.3%
Industrial Machinery 4.3%
Diversified Capital Markets 3.8%
Steel 3.7%
Thrifts & Mortgage Insurance 3.7%
Construction Materials 3.5%
Electric Utilities 3.4%
Multi-Line Insurance 3.3%
Construction & Engineering 2.9%
Home Building 2.5%
Department Stores 1.9%
Aerospace & Defense 1.8%
Communications Equipment 1.8%
Multi-Utilities 1.8%
Asset Management & Custody Banks 1.7%
Electrical Components & Equipment 1.7%
Oil & Gas Equipment & Services 1.7%
Water Utilities 1.7%
Specialty Chemicals 1.6%
Broadcast & Cable TV 1.5%
Diversified Commercial & Professional Services 1.5%
Heavy Electrical Equipment 1.3%
Other Diversified Financial Services 1.3%
Diversified REITS 1.3%
Tobacco 1.3%
Real Estate Management & Development 1.1%
</Table>
Management Overview 19
Management Overview (continued)
ICON Europe Fund
INDUSTRY COMPOSITION (CONTINUED)
<Table>
March 31, 2006
Integrated Oil & Gas 1.2%
Air Freight & Logistics 1.1%
Brewers 1.0%
Casinos & Gaming 1.0%
Environmental & Facilities Services 1.0%
Footwear 1.0%
Health Care Equipment 1.0%
Internet Software Services 1.0%
Agriculture Products 0.9%
Pharmaceuticals 0.9%
Trucking 0.9%
Auto Parts & Equipment 0.8%
Health Care Facilities 0.8%
Paper Packaging 0.8%
Specialized Finance 0.8%
Household Products 0.7%
Leisure Products 0.7%
Oil & Gas Refining & Marketing 0.7%
Diversified Chemicals 0.6%
IT Consulting & Other Services 0.6%
Hotels, Resorts & Cruise Lines 0.5%
Apparel Accessories & Luxury Goods 0.4%
Automobile Manufacturers 0.3%
Tire & Rubber 0.3%
Airlines 0.2%
Apparel Retail 0.2%
Application Software 0.2%
Oil & Gas Exploration & Production 0.2%
Percentages are based upon net assets.
</Table>
20 Management Overview
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTH* 1 YEAR 5 YEARS 2/20/97
- -------------------------------------------------------------------------------------------
ICON Europe Fund 21.15% 36.66% 14.85% 10.72%
- -------------------------------------------------------------------------------------------
MSCI Europe Index 13.04% 21.22% 9.90% 9.44%
- -------------------------------------------------------------------------------------------
Bloomberg European 500 Index 16.59% 33.57% 4.89% 9.30%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
The Fund's name and investment strategy changed effective January 29, 2004. The
Fund's past performance would have been different if the current strategy had
been in effect.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
BLOOMBERG EUROPEAN 500
ICON EUROPE FUND MSCI EUROPE INDEX INDEX
---------------- ----------------- ----------------------
2/20/97 9800 10308 10154
3/31/97 10700 11239 11402
11899 12178 12471
12381 12197 12596
15104 14684 15466
3/31/98 15603 15450 16093
12625 13233 12886
15068 15722 15212
14245 15401 15808
3/31/99 13197 15364 16760
13435 15555 16514
14365 18272 20766
13848 18298 21916
3/31/00 14459 17732 21215
13462 16447 20888
14180 16784 19775
12653 14181 17706
3/31/01 11551 13937 18795
10794 12255 15220
11141 13488 17198
11980 13479 17566
3/31/02 12459 12905 14899
9850 9963 11517
10396 11049 12062
9623 10038 10728
3/31/03 11899 12286 12509
13097 12772 12835
15173 15374 14220
15812 15519 14770
3/31/04 16092 15898 15228
16011 16095 15131
18487 18662 16040
18500 18759 16828
3/31/05 18287 18665 17829
20869 20117 19278
20913 20518 20030
3/31/06 25282 22740 22476
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 2/20/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
Management Overview 21
Schedule of Investments
ICON Europe Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
COMMON STOCKS (93.6%)
67,900 ABB, Ltd.(a) $ 855,765
18,700 ABN ARMO Holding
N.V. 558,708
16,250 Alpha Bank A.E. 600,511
11,000 Arcadis N.V. 470,724
23,300 Aviva PLC 322,876
48,900 BAE Systems PLC 356,461
4,100 Baloise Holding AG 291,970
22,900 Banco Popolare di
Verona e Novara
Scrl 605,674
8,650 Bank Zachodni WBK
S.A. 394,607
52,000 Barclays PLC 607,200
34,000 Barratt
Developments PLC 622,944
10,000 Bayer AG 400,682
23,600 Bellway PLC 504,875
44,100 BG Group PLC 550,729
25,500 BHP Billiton PLC 467,525
11,500 Bilfinger Berger
AG 753,125
6,160 BNP Paribas S.A. 570,016
2,180 Boehler - Uddeholm
AG 448,682
19,500 British American
Tobacco PLC 471,697
40,700 Brunel
International N.V. 1,371,834
40,400 Buzzi Unicem S.p.A 962,512
79,400 Capitalia S.p.A. 658,099
12,700 Commerzbank AG 504,441
505 Compagnie Francois
d'Entreprises 525,520
2,000 Continental AG 220,396
17,100 Credit Suisse
Group 956,895
53,250 Curanum AG 542,277
3,100 Dem Allianz AG 516,984
19,177 Det Norske
Oljeselskap ASA 140,403
6,240 Deutsche Bank AG 711,358
2,170 Deutsche Boerse AG 312,065
10,650 Deutsche Post AG 266,402
5,100 Deutsche Postbank
AG 370,221
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
4,405 DSV A/S $ 585,796
4,000 E.ON AG 439,548
20,600 easyJet PLC(a) 125,321
93,500 Energias de
Portugal, S.A. 366,988
6,380 Eurofins
Scientific(a) 361,695
3,200 Euronext N.V. 263,684
5,200 EVS Broadcast
Equipment S.A. 254,038
14,700 Fondiaria - Sai
S.p.A. 586,156
2,250 Fresenius AG 404,185
12,600 Fugro N.V. 484,725
13,700 Gerry Weber
International AG 284,730
23,000 GlaxoSmithKline
PLC 601,220
2,370 Groupe Steria SCA 145,099
24,100 HBOS PLC 401,818
9,500 Heineken N.V. 359,842
29,600 Homeserve PLC 744,000
12,505 Hypo Real Estate
Holding AG 858,736
7,500 InBev N.V. 351,325
22,300 ING Groep N.V. 878,137
18,200 Intralot S.A. 475,605
12,200 JC Aktiebolag 155,451
29,200 Jumbo S.A. 484,962
4,550 KBC Groep N.V. 487,432
57,300 Kensington Group
PLCv 1,182,552
2,800 Koninklijke BAM
Groep N.V. 283,132
7,350 Lafarge S.A. 832,207
4,500 Linedata Services 138,256
8,100 Maisons France
Confort 555,447
15,200 Man Group PLC 649,516
89,570 Marks & Spencer
Group PLC 864,503
2,860 Mayr-Melnhof
Karton AG 510,503
11,800 Mecalux S.A.(a) 373,444
18,200 Motor Oil (Hellas)
Corinth Refineries
S.A. 491,838
11,715 National Bank Of
Greece S.A. 550,801
14,650 Next PLC 418,643
22,800 Northern Rock PLC 467,971
</Table>
22 Schedule of Investments
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
10,700 Nutreco Holding
N.V. $ 621,459
2,490 Oesterrichische
Elekrizitaitswirts
AG - Class A 1,108,396
4,130 OMV AG 276,154
9,400 OPAP S.A. 359,329
9,960 Option N.V.(a) 1,002,510
18,063 Pennon Group PLC 419,327
5,100 Phonak Holding AG 290,450
20,000 Pinguely - Haulotte 606,009
5,800 Prokom Software SA 262,094
1,730 Puma AG(a) 653,992
18,900 Ramirent Oyj 625,131
14,150 Reckitt Benckiser
PLC 496,594
6,100 Red Electrica de
Espana 196,524
1,370 Rieter Holding AG 545,216
9,200 Rio Tinto PLC 471,813
74,500 Rolls Royce Group
PLC 591,727
3,211,860 Rolls-Royce Group
PLC - B Sharesv* 5,580
7,990 RWE AG 694,398
11,300 Saipem S.p.A. 260,977
15,020 Salzgitter AG 1,104,309
3,910 SBM Offshore N.V. 391,451
5,100 Schneider Electric
S.A. 549,103
590 Sika AG(a) 605,568
1,810 Sjaelso Gruppen
A/S 722,661
3,365 Societe Generale 504,159
905 Solarworld AG 237,303
33,600 Sportingbet PLCv 218,887
7,700 SSAB Svenskt Stal
AB 369,174
12,700 Suez S.A. 499,045
625 Sulzer AG 425,699
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
30,100 Swedish Match AB $ 411,320
20,600 ThyssenKrupp AG 594,345
12,810 Titan Cement Co. 611,983
14,300 TNT N.V. 494,155
24,000 Tomra Systems ASA 191,561
13,050 TVN S.A.(a) 355,429
8,460 UBS AG 929,991
3,420 Umicore, S.A. 473,132
4,730 Unibail 852,466
10,900 United Internet AG 701,255
21,490 USG People N.V. 1,553,418
22,495 Vacon Oyj(a) 627,335
1,600 Vallourec S.A. 1,540,917
66,900 Vedanta Resources
PLC 1,633,326
10,300 Veidekke ASA 411,075
3,000 Volkswagen AG 224,638
13,600 Vontobel Holding
AG 524,744
14,450 Xstrata PLC 467,792
3,700 Zodiac S.A. 239,447
2,200 Zurich Financial
Services AG(a) 515,169
-----------
TOTAL COMMON STOCKS (COST
$54,476,920) 63,802,021
PREFERRED STOCKS (1.0%)
25,600 ProsiebenSat.1
Media AGv 666,297
-----------
TOTAL PREFERRED STOCKS (COST
$624,873) 666,297
SHORT-TERM INVESTMENTS (12.3%)
$8,390,021 Brown Brothers
Harriman Time
Deposit,
4.07%, 04/03/06# $ 8,390,021
133 Brown Brothers
Harriman Time
Deposit - British
Pound,
3.52%, 04/03/06# 133
</Table>
Schedule of Investments 23
Schedule of Investments (continued)
ICON Europe Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
$ 83 Brown Brothers
Harriman Time
Deposit - Danish
Krone,
1.45%, 04/03/06# $ 83
100 Brown Brothers
Harriman Time
Deposit -
Norwegian Kroner,
1.15%, 04/03/06# 100
79 Brown Brothers
Harriman Time
Deposit - Swedish
Krona,
1.15%, 04/03/06# 79
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST $8,390,416) 8,390,416
-----------
TOTAL INVESTMENTS 106.9% (COST
$63,492,209) 72,858,734
LIABILITIES LESS OTHER ASSETS
(6.9)% (4,725,525)
-----------
TOTAL NET ASSETS 100.0% $68,133,209
===========
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
v All common stocks were fair valued (Note 1) as of March 31, 2006 unless noted
with a v. Total value of common stocks fair valued was $62,395,002.
* Shares are currently restricted from trading.
24 Schedule of Investments
Management Overview
ICON International Equity Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 96.8%
Top 10 Equity Holdings 16.6%
Number of Stocks 125
Short-Term Investments 5.3%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Vallaourec S.A. 2.2%
USG People N.V. 2.2%
Vedanta Resources PLC 2.0%
High Tech Computer Corp. 1.5%
The Japan Steel Works, Ltd. 1.5%
Oesterrichische Elekrizitaitswirts AG - Class A 1.5%
Option N.V. 1.5%
Tim Participacoes S.A. 1.4%
Dongfang Electrical Machinery Co., Ltd. 1.4%
Hopson Development Holdings, Ltd. 1.4%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. For the six-month period ended March 31, 2006, the ICON International Equity
Fund returned 21.10% for Class I shares, 20.67% for Class C shares and 21.37%
for Class Z shares, outpacing the 14.57% return of the MSCI All Country World
Index ex-U.S., the Fund's benchmark, over the same period. Total returns for
other periods as of March 31, 2006 appear on page 30.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. Broad market participation across Asia, Europe and the Western Hemisphere
benefited overall performance, as foreign stocks continued to trade at deeper
discounts and close wider valuation gaps than their U.S. counterparts. The
Asia-Pacific region led the way during the fourth quarter of 2005, while
Europe assumed global leadership in the first quarter of 2006, contributing
significantly to overall outperformance versus the broad U.S. market.
While the Fund does not utilize market capitalization as a valuation measure,
our methodology led us to tilt the portfolio actively toward small-and
mid-cap stocks relative to the predominantly large-cap benchmark. This
overweighting and stock selection of small- and mid-caps, combined with an
underweight in the large-cap arena, proved beneficial to relative
performance. At the same time, the Fund's focus on leading industry themes
within the Materials and Industrials sectors also lifted results, while
currency movements exerted minimal impact on absolute performance.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Compared to the benchmark, Fund performance was boosted most substantially by
continued strength in the actively overweighted Industrials sector. Strong
showings from both Asian and European names in industrial machinery and
European holdings in human resource & employment services proved highly
beneficial, as did the Fund's overweighting in Materials sector component
diversified metals & mining. Also lifting results was the Fund's overexposure
in Latin American wireless telecommunication services. Meanwhile, Healthcare
was the lone detracting sector, as health care facilities and health care
equipment both faltered.
While country selection is not a primary consideration of our investment
process, industry weightings impact regional weightings, and those played a
role in overall performance. Proving favorable was an active tilt toward
Asia, primarily Japan and South Korea, versus the Fund's underexposure to the
Western Hemisphere and Europe, with underweights in the U.K. and Italy.
Management Overview 25
Management Overview (continued)
ICON Asia-Pacific Region Fund
[SCOTT SNYDER PHOTO]
Scott Snyder
Portfolio Manager
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE INTERNATIONAL EQUITY MARKET?
A. According to our analysis, international equities on average still trade at
deeper discounts versus their domestic peers, with the widest valuation gap
being in the Asia-Pacific region. Meanwhile, the worldwide cyclical theme
continues to show strength, with Materials, Industrials and Financials
indicating leadership. On the other hand, defensive areas are showing value
but lack relative strength. Additionally, we are seeing a divergence in
Information Technology, as this area shows the most value in Asia, yet the
least in Europe.
As previously noted, country selection is not primary to our investment
approach, though as a secondary consideration Japan, China and Hong Kong
remain the most attractive Asian countries. Europe is showing more parity
regarding value and leadership, though Germany, the Netherlands and Greece
appear compelling. In the Western Hemisphere region, Brazil also remains
attractive. That being said, we remain committed to seeking out those
industries indicating value and relative strength wherever they may emerge.
PERFORMANCE HIGHLIGHTS
- - Broad market participation across Asia, Europe and the Western Hemisphere
benefited overall performance.
- - The Fund's overweighting and stock selection of small- and mid-cap stocks,
combined with an underweight in the large-cap arena, proved beneficial to
relative performance, as did a focus on leading industry themes.
- - Performance was boosted by continued strength in the actively overweighted
Industrials sector along with overweights in the diversified metals & mining
and wireless telecommunication industries. Healthcare was the lone detracting
sector.
26 Management Overview
COUNTRY COMPOSITION
March 31, 2006
<Table>
Japan 25.6%
United Kingdom 10.0%
Netherlands 7.6%
Germany 7.5%
France 6.0%
China 4.9%
Brazil 3.6%
Taiwan 3.5%
Switzerland 3.4%
Greece 3.3%
Belgium 3.2%
Hong Kong 3.0%
Austria 2.9%
Italy 2.7%
Australia 2.1%
Canada 2.1%
South Korea 1.9%
Finland 1.2%
Mexico 1.2%
Denmark 0.8%
Norway 0.3%
</Table>
Percentages are based upon net assets.
Management Overview 27
Management Overview (continued)
ICON International Equity Fund
SECTOR COMPOSITION
March 31, 2006
<Table>
Financial 23.1%
Industrials 20.4%
Materials 17.5%
Information Technology 8.3%
Consumer Discretionary 7.8%
Telecommunication and Utilities 7.2%
Leisure and Consumer Staples 5.9%
Energy 5.6%
Healthcare 1.0%
</Table>
Percentages are based upon net assets.
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Diversified Banks 8.6%
Diversified Metals & Mining 5.5%
Industrial Machinery 4.9%
Steel 4.0%
Electric Utilities 3.2%
Diversified Capital Markets 2.9%
Integrated Oil & Gas 2.6%
Wireless Telecommunication Services 2.6%
Real Estate Management & Development 2.5%
Heavy Electrical Equipment 2.3%
Computer Hardware 2.2%
Electrical Components & Equipment 2.2%
Human Resource & Employment Services 2.2%
Auto Parts & Equipment 2.1%
Communications Equipment 2.0%
Multi-Line Insurance 1.9%
Specialty Chemicals 1.9%
Construction Materials 1.8%
Oil & Gas Exploration & Production 1.7%
Railroads 1.7%
Construction & Engineering 1.6%
Air Freight & Logistics 1.5%
Diversified Chemicals 1.5%
Leisure Products 1.4%
Investment Banking & Brokerage 1.3%
</Table>
28 Management Overview
INDUSTRY COMPOSITION (CONTINUED)
<Table>
March 31, 2006
Thrifts & Mortgage Insurance 1.3%
Construction & Farm Machinery & Heavy Trucks 1.2%
Oil & Gas Equipment & Services 1.2%
Diversified Commercial & Professional Services 1.1%
Gold 1.1%
Personal Products 1.1%
Commodity Chemicals 1.0%
Life & Health Insurance 1.0%
Pharmaceuticals 1.0%
Semiconductor Equipment 1.0%
Consumer Finance 0.9%
Internet Software Services 0.9%
Multi-Utilities 0.9%
Tobacco 0.9%
Agriculture Products 0.8%
Consumer Electronics 0.8%
Office Electronics 0.8%
Specialized Finance 0.8%
Trucking 0.8%
Aluminum 0.7%
Apparel Accessories & Luxury Goods 0.7%
Asset Management & Custody Banks 0.7%
Automobile Manufacturers 0.7%
Electronic Manufacturing Services 0.7%
Footwear 0.7%
Home Building 0.7%
Photographic Products 0.7%
Real Estate Investment Trusts 0.7%
Apparel Retail 0.6%
Broadcast & Cable TV 0.6%
Department Stores 0.6%
General Merchandise Stores 0.6%
Aerospace & Defense 0.5%
Other Diversified Financial Services 0.5%
Semiconductors 0.5%
Water Utilities 0.5%
Environmental & Facilities Services 0.4%
Household Products 0.4%
Tire & Rubber 0.4%
Electronic Equipment Manufacturers 0.2%
</Table>
Percentages are based upon net assets.
Management Overview 29
Management Overview (continued)
ICON International Equity Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
INCEPTION SINCE
DATE 6 MONTH* 1 YEAR 5 YEARS INCEPTION
- ---------------------------------------------------------------------------------------------------
ICON International Equity Fund - Class
I 2/6/04 21.10% 41.47% N/A 22.82%
- ---------------------------------------------------------------------------------------------------
MSCI ACWI ex-U.S 14.57% 28.11% N/A 21.37%
- ---------------------------------------------------------------------------------------------------
ICON International Equity Fund - Class
C 2/19/04 20.67% 40.39% N/A 19.66%
- ---------------------------------------------------------------------------------------------------
MSCI ACWI ex-U.S 14.57% 28.11% N/A 20.07%
- ---------------------------------------------------------------------------------------------------
ICON International Equity Fund - Class
Z 2/18/97 21.37% 42.12% 15.40% 10.60%
- ---------------------------------------------------------------------------------------------------
MSCI ACWI ex-U.S 14.57% 28.11% 11.77% 7.77%
- ---------------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
The Fund's name and investment strategy changed effective January 29, 2004. The
Fund's past performance would have been different if the current strategy had
been in effect. Class Z shares are available only to grandfathered and
institutional investors.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON INTERNATIONAL EQUITY FUND
CLASS Z MSCI ACWI EX-U.S.
------------------------------ -----------------
2/18/97 10230 10028
3/31/97 10570 11330
11060 11225
11281 10258
12900 11659
3/31/98 13562 11486
11841 9750
13001 11741
12171 12019
3/31/99 12728 12580
13354 13008
15698 15370
15585 15490
3/31/00 15159 14858
14747 13647
14340 13052
12239 11337
3/31/01 12224 11322
10280 9650
11145 10508
11145 10680
3/31/02 10901 10397
8538 8390
9077 8966
8382 8312
3/31/03 10684 9961
12175 10826
14897 12678
15742 13291
3/31/04 15232 13199
15436 13332
17589 15387
17621 15438
3/31/05 17447 15436
20619 17262
23113 18020
3/31/06 25025 19777
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund's Class Z shares on the Class' inception
date of 2/18/97 to a $10,000 investment made in an unmanaged securities index on
that date. Performance for the Fund's other share classes will vary due to
differences in charges and expenses. The Fund's performance in this chart and
the performance table assumes the reinvestment of dividends, capital gain
distributions and tax return of capital but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
30 Management Overview
Schedule of Investments
ICON International Equity Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
COMMON STOCKS (96.2%)
60,800 ABB, Ltd.(a) $ 766,282
18,480 ABN ARMO Holding
N.V. 552,135
21,900 Alpha Bank A.E 809,305
528,000 Aluminum Corp. of
China, Ltd. 554,882
584,000 America Movil
S.A. de C.V.v 1,000,529
8,500 Arcadis N.V. 363,741
59,200 BAE Systems PLC 431,543
27,900 Banco Popolare di
Verona e Novara
Scrl 737,917
31,400 Barratt
Developments PLC 575,308
54,100 BG Group PLC 675,611
19,700 BHP Billiton PLC 361,186
5,722 BNP Paribas S.A. 529,485
2,590 Boehler -
Uddeholm AG 533,067
14,940 British American
Tobacco PLC 361,392
14,800 Canadian National
Railway Co.v 670,791
9,900 Canon, Inc. 653,457
93,100 Capitalia S.p.A. 771,650
16,600 Cheil Industries,
Inc. 607,109
15,500 Commerzbank AG 615,656
700 Compagnie
Francois
d'Entreprises 728,443
8,400,000 Companhia
Energetica de
Minas Geraisv 383,107
2,806 Continental AG 309,215
12,600 Credit Suisse
Group 705,081
75,000 Daido Steel Co.,
Ltd. 763,226
30,000 Daiwa Securities
Group, Inc. 402,629
20,100 Denso Corp. 794,654
35,132 Det Norske
Oljeselskap ASA 257,217
5,500 Deutsche Bank AG 626,999
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
2,430 Deutsche Boerse
AG $ 349,455
16,750 Deutsche Post AG 418,989
550,000 Dongfang
Electrical
Machinery Co.,
Ltd. 1,118,614
5,480 DSM N.V. 249,799
4,640 DSV A/S 617,046
5,000 E.ON AG 549,436
100 East Japan
Railway Co. 740,777
7,860 Eurofins
Scientific(a) 445,599
4,150 Euronext N.V. 341,965
7,970 EVS Broadcast
Equipment S.A. 389,361
17,600 First Quantum
Minerals, Ltd.v 723,535
17,400 Fondiaria - Sai
S.p.A. 693,817
12,700 Fugro N.V. 488,572
81,000 Fujikura, Ltd. 915,996
32,000 GlaxoSmithKline
PLC 836,480
25,300 HBOS PLC 421,826
586,000 Hengan
International
Group Co., Ltd. 927,843
46,200 High Tech
Computer Corp. 1,260,053
519,000 Hopson
Development
Holdings, Ltd. 1,118,447
19,400 Industrial Bank
of Korea 358,520
10,200 ING Groep N.V. 401,659
34 Inpex Corp. 288,206
115 Japan Tobacco,
Inc. 404,764
18,000 JFE Holdings,
Inc. 728,068
86,400 Johnson Health
Tech. Co., Ltd. 432,407
24,400 Jumbo S.A. 405,242
290 K.K. DaVinci
Advisors(a) 394,985
179,000 Kawasaki Heavy
Industries, Ltd. 628,632
52,800 Kensington Group
PLCv 1,089,681
187,000 Kobe Steel, Ltd. 711,238
52,000 Komatsu, Ltd. 991,943
</Table>
Schedule of Investments 31
Schedule of Investments (continued)
ICON International Equity Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
6,500 Lafarge S.A. $ 735,966
35,450 Largan Precision
Co., Ltd. 573,199
23,800 Lasertec Corp. 832,364
10,700,000 Lojas Americanas
S.A.v 457,483
12,500 Man Group PLC 534,143
28,000 Matsushita
Electric
Industrial Co.,
Ltd. 618,771
109,000 Mitsubishi
Materials Corp. 583,774
97,000 Mitsubishi Rayon
Co., Ltd. 794,053
23 Mitsubishi UFJ
Financial Group,
Inc. 349,836
56 Mizuho Financial
Group, Inc. 458,122
15,300 National Bank of
Greece S.A. 719,356
16,050 Next PLC 458,649
38,021 NGK Spark Plug
Co., Ltd. 886,092
43,000 Nissan Chemical
Industries, Ltd. 729,474
5,100 Nitto Denko Corp. 432,609
27,700 Nomura Holdings,
Inc. 613,740
10,900 Nutreco Holding
N.V. 633,076
2,715 Oesterrichische
Elekrizitaitswirts
AG - Class A 1,208,553
9,200 OMV AG 615,160
11,730 Option N.V.(a) 1,180,669
2,300 Orix Corp. 714,479
11,000 Park24 Co., Ltd. 376,391
18,427 Pennon Group PLC 427,777
10,500 Petroleo
Brasileiro,
S.A. - ADRv 910,035
310,000 Ping An Insurance
(Group) Company
of China, Ltd. 798,230
314,000 Ports Design,
Ltd. 460,722
1,600 Puma AG(a) 604,848
9,700 Reckitt Benckiser
PLC 340,421
6,050 Rio Tinto, Ltd. 341,227
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
5,050 RWE AG $ 438,887
23,800 Sampo Oyj 500,617
17,700 Samsung
Engineering Co.,
Ltd. 595,341
4,900 SBM Offshore N.V. 490,566
4,000 Schneider
Electric S.A. 430,669
8,200 Sega Sammy
Holdings, Inc. 332,906
1,124,000 Shanghai Forte
Land Co., Ltd. 585,018
14,000 Shinko Electric
Industries Co.,
Ltd. 422,845
117,000 Showa Denko K.K 519,848
1,430 Solarworld AG 374,965
8,700 Suez S.A. 341,866
34,000 Sumitomo Heavy
Industries, Ltd. 326,131
48 Sumitomo Mitsui
Financial Group,
Inc. 529,927
6,100 Talisman Energy,
Inc.v 324,017
180,000 The Japan Steel
Works, Ltd. 1,226,325
20,500 ThyssenKrupp AG 591,460
312,060,000 Tim Participacoes
S.A.v 1,154,175
14,950 Titan Cement Co. 714,219
24,240 TNT N.V. 837,644
34,000 Tokuyama Corp. 576,460
78,000 Toshiba Corp. 453,360
10,600 Toyota Motor
Corp. 577,259
8,640 UBS AG 949,778
2,400 Umicore, S.A. 332,023
3,200 Unibail 576,721
381,000 Unimicron
Technology Corp. 553,631
11,500 United Internet
AG 739,856
24,750 USG People N.V. 1,789,069
10 V Technology Co,.
Ltd. 137,506
17,430 Vacon Oyj(a) 486,085
1,892 Vallourec S.A. 1,822,135
65,500 Vedanta Resources
PLC 1,599,146
</Table>
32 Schedule of Investments
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
13,700 Woodside
Petroleum, Ltd. $ 445,405
1,122,000 Zijin Mining
Group Co., Ltd. -
Class H 882,711
130,800 Zinifex, Ltd. 894,875
1,500 Zurich Financial
Services AG(a) 351,251
-----------
TOTAL COMMON STOCKS
(COST $64,872,043) 78,278,488
PREFERRED STOCKS (0.6%)
18,700 ProsiebenSat.1
Media AGv 486,709
-----------
TOTAL PREFERRED STOCKS (COST
$468,119) 486,709
SHORT-TERM INVESTMENTS (5.3%)
$ 4,275,521 Brown Brothers
Harriman Time
Deposit, 4.07%,
04/03/06# $ 4,275,521
338 Brown Brothers
Harriman Time
Deposit -
Australian
Dollar, 4.45%,
04/03/06# 338
180 Brown Brothers
Harriman Time
Deposit -
Canadian Dollar,
2.70%, 04/03/06# 180
86 Brown Brothers
Harriman Time
Deposit - Danish
Krone, 1.45%,
04/03/06# 86
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
$ 48,153 Brown Brothers
Harriman Time
Deposit - Euro,
1.68%, 04/03/06# $ 48,153
197 Brown Brothers
Harriman Time
Deposit - Hong
Kong Dollar,
2.90%, 04/03/06# 197
35 Brown Brothers
Harriman Time
Deposit -
Norwegian Kroner,
1.15%, 04/03/06# 35
86 Brown Brothers
Harriman Time
Deposit -
Singapore Dollar,
2.37%, 04/03/06# 86
65 Brown Brothers
Harriman Time
Deposit - Swedish
Krona, 1.15%,
04/03/06# 65
-----------
TOTAL SHORT-TERM INVESTMENT
(COST $4,324,661) 4,324,661
-----------
TOTAL INVESTMENTS 102.1% (COST
$69,664,823) 83,089,858
LIABILITIES LESS OTHER ASSETS
(2.1)% (1,735,060)
-----------
TOTAL NET ASSETS 100.0% $81,354,798
===========
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
v All common stocks were fair valued (Note 1) as of March 31, 2006 unless
noted with a v. Total value of common stocks fair valued was $71,565,135.
Schedule of Investments 33
Six Month Hypothetical Expense Example
March 31, 2006 (unaudited)
EXAMPLE
As a shareholder of a Fund you may pay two types of fees: transaction fees and
fund-related fees. Certain funds charge transactions fees, including sales
charges (loads) on purchase payments, reinvested dividends, or other
distributions; redemption fees; and exchange fees. The ICON Funds do not charge
these types of fees. Funds also incur various ongoing expenses, including
management fees, distribution and/or service fees, and other fund expenses,
which are indirectly paid by shareholders.
This Example is intended to help you understand your ongoing costs (in dollars)
of investing in the various ICON Funds and to compare these costs with the
ongoing costs of investing in other mutual funds. This Example is based on an
investment of $1,000 invested at the beginning of the period and held for the
six-month period (10/1/05 - 3/31/06).
ACTUAL EXPENSES
The first line in the table for each Fund provides information about actual
account values and actual expenses. The Example includes, but is not limited to,
management fees, fund accounting, custody and transfer agent fees. However, the
Example does not include client specific fees, such as the $10.00 fee charged to
IRA accounts, or the $15.00 fee charged for wire redemptions. You may use this
information, together with the amount you invested, to estimate the expenses
that you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the first line for each Fund under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table for each Fund provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare 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 the
shareholder reports of the other funds. Please note that the expenses shown in
the table are meant to highlight your ongoing costs only and do not reflect any
transactional costs, such as sales charges (loads), redemption fees, or exchange
fees that may be charged by other funds. Therefore, this information is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds.
34 Expense Example
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD EXPENSE RATIO
10/1/05 3/31/06 10/1/05-3/31/06* 10/1/05-3/31/06
- -------------------------------------------------------------------------------------------------
ICON ASIA-PACIFIC REGION
FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses $1,000.00 $1,200.30 $ 7.63 1.39%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,018.07 6.99
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
ICON EUROPE FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,211.50 8.66 1.57%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,017.17 7.90
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
ICON INTERNATIONAL EQUITY
FUND
- -------------------------------------------------------------------------------------------------
CLASS I
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,211.00 9.54 1.73%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,016.37 8.70
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
CLASS C
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,206.70 14.03 2.55%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,012.28 12.79
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
CLASS Z
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,213.70 7.78 1.41%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,017.97 7.09
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
</Table>
* Expenses are equal to the Fund's six month expense ratio annualized,
multiplied by the average account value over the period, multiplied by 182/365
to reflect the one-half year period.
Expense Example 35
Statements of Assets and Liabilities
March 31, 2006 (unaudited)
<Table>
<Caption>
ICON ICON
ASIA-PACIFIC ICON INTERNATIONAL
REGION FUND EUROPE FUND EQUITY FUND
------------ ----------- -------------
ASSETS
Investments, at cost $132,576,879 $63,492,209 $69,664,823
------------ ----------- -----------
Investments, at value 153,802,914 72,858,734 83,089,858
Cash 17,609 - -
Receivables:
Fund shares sold 694,209 1,427,634 803,693
Investments sold 2,640,605 214,387 1,703,936
Interest 304 1,308 894
Dividends 438,066 53,796 189,253
Foreign security reclaims - 22,206 11,706
Other assets 64,643 20,669 35,518
------------ ----------- -----------
Total Assets 157,658,350 74,598,734 85,834,858
------------ ----------- -----------
LIABILITIES
Payables:
Due to custodian bank - 577,786 14,870
Investments bought 3,708,173 5,796,211 4,366,887
Fund shares redeemed 367,643 30,983 11,133
Advisory fees 126,502 46,635 62,331
Accrued distribution fees - - 13,965
Fund accounting fees 3,061 1,116 1,506
Transfer agent fees 12,319 301 2,344
Administration fees 5,984 2,188 2,936
Trustee fees 6,691 2,496 3,315
Accrued expenses 6,525 7,809 773
------------ ----------- -----------
Total Liabilities 4,236,898 6,465,525 4,480,060
------------ ----------- -----------
NET ASSETS - ALL SHARE CLASSES $153,421,452 $68,133,209 $81,354,798
============ =========== ===========
NET ASSETS - CLASS I $ - $ - $49,861,853
============ =========== ===========
NET ASSETS - CLASS C $ - $ - $ 7,578,350
============ =========== ===========
NET ASSETS - CLASS Z $ - $ - $23,914,595
============ =========== ===========
NET ASSETS CONSIST OF
Paid-in capital $142,873,814 $57,441,326 $64,523,993
Accumulated undistributed net investment income/(loss) (282,766) (134,014) (195,516)
Accumulated undistributed net realized gain/(loss) from
investments (10,171,586) 1,643,080 3,813,479
Accumulated net realized gain/(loss) from foreign currency
translations (238,621) (199,390) (219,939)
Unrealized appreciation/(depreciation):
on investments and other assets and liabilities
denominated in foreign currency 21,240,611 9,382,207 13,432,781
------------ ----------- -----------
NET ASSETS $153,421,452 $68,133,209 $81,354,798
============ =========== ===========
Shares outstanding (unlimited shares authorized, no par
value) 11,375,442 3,797,102 -
Class I - - 3,338,169
Class C - - 525,358
Class Z - - 1,589,305
Net asset value (offering and redemption price per share) $ 13.49 $ 17.94 $ -
Class I $ - $ - $ 14.94
Class C $ - $ - $ 14.43
Class Z $ - $ - $ 15.05
</Table>
The accompanying notes are an integral part of the financial statements.
36 Financial Statements
Statements of Operations
For the period ended March 31, 2006 (unaudited)
<Table>
<Caption>
ICON ICON
ASIA-PACIFIC ICON INTERNATIONAL
REGION FUND EUROPE FUND EQUITY FUND
------------ ----------- -------------
INVESTMENT INCOME
Interest $ 65,718 $ 30,222 $ 25,095
Dividends 601,749 130,337 338,089
Foreign taxes withheld (62,110) - (20,101)
----------- ---------- -----------
Total Investment Income 605,357 160,559 343,083
----------- ---------- -----------
EXPENSES
Advisory fees 549,438 163,112 270,930
Distribution fees:
Class I - - 36,550
Class C - - 19,005
Fund accounting fees 25,242 13,330 17,439
Transfer agent fees 39,200 7,847 19,875
Custody fees 76,539 38,491 41,956
Administration fees 25,768 7,639 12,711
Registration fees 14,086 9,393 13,180
Insurance expense 443 580 710
Trustee fees and expenses 4,595 2,082 2,652
Interest expense 48,731 225 7,536
Other expenses 34,199 16,033 19,896
----------- ---------- -----------
Total expenses before expense (reimbursement)/recoupment 818,241 258,732 462,440
----------- ---------- -----------
Expense (reimbursement)/recoupment by Adviser due to
expense limitation agreement - - (3,163)
----------- ---------- -----------
Net Expenses 818,241 258,732 459,277
----------- ---------- -----------
NET INVESTMENT INCOME (LOSS) (212,884) (98,173) (116,194)
----------- ---------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gain/(loss) from investment transactions (2,382,287) 1,608,202 3,933,503
Net realized gain/(loss) from foreign currency
translations (205,954) (101,688) (151,464)
Change in unrealized net appreciation/(depreciation) on
investments 14,813,393 6,034,579 7,789,480
----------- ---------- -----------
Net realized and unrealized gain/(loss) on investments 12,225,152 7,541,093 11,571,519
----------- ---------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS $12,012,268 $7,442,920 $11,455,325
=========== ========== ===========
</Table>
The accompanying notes are an integral part of the financial statements.
Financial Statements 37
Statements of Changes in Net Assets
<Table>
<Caption>
ICON ASIA-PACIFIC REGION FUND
------------------------------------
PERIOD ENDED
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------
OPERATIONS
Net investment income/(loss) $ (212,884) $ 45,287
Net realized gain/(loss) from investment transactions (2,382,287) 1,927,462
Net realized gain/(loss) from foreign currency
translations (205,954) (32,667)
Change in net unrealized appreciation/(depreciation) on
investments and foreign currency translations 14,813,393 4,738,359
------------ ------------
Net increase/(decrease) in net assets resulting from
operations 12,012,268 6,678,441
------------ ------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income (85,846) (26,459)
Class I - -
Class C - -
Class Z - -
Net realized gains - -
Class I - -
Class C - -
Class Z - -
------------ ------------
Net decrease from dividends and distributions (85,846) (26,459)
------------ ------------
FUND SHARE TRANSACTIONS
Shares sold 169,421,747 39,085,269
Class I - -
Class C - -
Class Z - -
Reinvested dividends and distributions 80,516 26,163
Class I - -
Class C - -
Class Z - -
Shares repurchased (76,728,135) (14,089,724)
Class I - -
Class C - -
Class Z - -
------------ ------------
Net increase/(decrease) from fund share transactions 92,774,128 25,021,708
------------ ------------
Total net increase/(decrease) in net assets 104,700,550 31,673,690
NET ASSETS
Beginning of period 48,720,902 17,047,212
------------ ------------
End of period $153,421,452 $ 48,720,902
============ ============
</Table>
The accompanying notes are an integral part of the financial statements.
38 Financial Statements
<Table>
<Caption>
ICON EUROPE FUND ICON INTERNATIONAL EQUITY FUND
------------------------------------ ------------------------------------
PERIOD ENDED PERIOD ENDED
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------ -------------- ------------------
$ (98,173) $ 85,751 $ (116,194) $ 80,075
1,608,202 2,088,483 3,933,503 2,007,770
(101,688) (97,702) (151,464) (68,475)
1,925,390 7,789,480 4,346,469
6,034,579
----------- ----------- ----------- -----------
7,442,920 4,001,922 11,455,325 6,365,839
----------- ----------- ----------- -----------
- - - -
- - (24,881) -
- - - -
- - (50,351) -
(1,340,887) - - -
- - (1,143,374) (422,167)
- - (134,889) (37,935)
- - (934,778) (1,003,360)
----------- ----------- ----------- -----------
(1,340,887) - (2,288,273) (1,463,462)
----------- ----------- ----------- -----------
43,163,763 19,527,704
- - 33,171,377 10,807,776
- - 5,456,429 1,464,926
- - 7,527,414 5,520,800
1,336,067 -
- - 1,133,191 407,049
- - 130,198 36,352
- - 983,433 994,866
(5,711,405) (8,112,955)
- - (4,817,168) (1,176,471)
- - (231,696) (248,111)
- - (3,630,121) (2,942,011)
----------- ----------- ----------- -----------
38,788,425 11,414,749 39,723,057 14,865,176
----------- ----------- ----------- -----------
44,890,458 15,416,671 48,890,109 19,767,553
23,242,751 7,826,080 32,464,689 12,697,136
----------- ----------- ----------- -----------
$68,133,209 $23,242,751 $81,354,798 $32,464,689
=========== =========== =========== ===========
</Table>
Financial Statements 39
<Table>
<Caption>
ICON ASIA-PACIFIC REGION FUND
------------------------------------
PERIOD ENDED
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------
TRANSACTIONS IN FUND SHARES
Shares sold 13,127,267 3,865,936
Class I - -
Class C - -
Class Z - -
Reinvested dividends and distributions 6,233 2,994
Class I - -
Class C - -
Class Z - -
Shares repurchased (6,088,574) (1,624,763)
Class I - -
Class C - -
Class Z - -
------------ -----------
Net increase/(decrease) 7,044,926 2,244,167
------------ -----------
Shares outstanding beginning of period 4,330,516 2,086,349
------------ -----------
Shares outstanding end of period 11,375,442 4,330,516
============ ===========
PURCHASE AND SALES OF INVESTMENT SECURITIES
(excluding short-term securities)
Purchase of securities $188,792,508 $53,438,824
Proceeds from sales of securities 95,257,324 30,360,825
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME/(LOSS) $ (282,766) $ 15,964
============ ===========
</Table>
The accompanying notes are an integral part of the financial statements.
40 Financial Statements
<Table>
<Caption>
ICON EUROPE FUND ICON INTERNATIONAL EQUITY FUND
------------------------------------ ------------------------------------
PERIOD ENDED PERIOD ENDED
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------ -------------- ------------------
2,587,457 1,406,104
- - 2,404,990 953,897
- - 402,591 131,856
- - 589,076 481,231
91,261 -
- - 84,124 37,655
- - 9,984 3,420
- - 72,522 91,777
(364,223) (574,107)
- - (341,654) (104,200)
- - (16,728) (23,141)
- - (261,996) (260,880)
----------- ----------- ----------- -----------
2,314,495 831,997 2,942,909 1,311,615
----------- ----------- ----------- -----------
1,482,607 650,610 2,509,923 1,198,308
----------- ----------- ----------- -----------
3,797,102 1,482,607 5,452,832 2,509,923
=========== =========== =========== ===========
$53,897,542 $33,678,756 $79,503,806 $41,768,432
19,515,929 24,639,660 44,389,603 28,810,442
$ (134,014) $ (35,841) $ (195,516) $ (4,090)
=========== =========== =========== ===========
</Table>
Financial Statements 41
Financial Highlights
<Table>
<Caption>
INCOME FROM INVESTMENT OPERATIONS
----------------------------------------
NET ASSET NET NET REALIZED
VALUE, INVESTMENT AND UNREALIZED TOTAL FROM
BEGINNING INCOME/ GAINS/(LOSSES) INVESTMENT
OF PERIOD (LOSS)(X) ON INVESTMENTS OPERATIONS
--------- ---------- -------------- ----------
ICON ASIA-PACIFIC REGION FUND
Period Ended March 31, 2006
(unaudited) $11.25 (0.02) 2.27 2.25
Year Ended September 30, 2005 $ 8.17 0.03 3.08 3.11
Year Ended September 30, 2004 $ 7.62 0.02 0.55 0.57
Year Ended September 30, 2003 $ 5.68 0.04 1.90 1.94
Year Ended September 30, 2002 $ 6.81 (0.19) (0.91) (1.10)
Year Ended September 30, 2001 $10.25 0.07 (3.51) (3.44)
ICON EUROPE FUND
Period Ended March 31, 2006
(unaudited) $15.68 (0.05) 3.17 3.12
Year Ended September 30, 2005 $12.03 0.07 3.58 3.65
Year Ended September 30, 2004 $ 9.84 (0.04) 2.23 2.19
Year Ended September 30, 2003 $ 7.40 (0.02) 2.46 2.44
Year Ended September 30, 2002 $ 8.13 (0.04) (0.67) (0.71)
Year Ended September 30, 2001 $10.14 0.05 (2.06) (2.01)
ICON INTERNATIONAL EQUITY FUND
CLASS I
Period Ended March 31, 2006
(unaudited) $12.91 (0.03) 2.69 2.66
Year Ended September 30, 2005 $10.59 0.04 3.25 3.29
February 6, 2004 (inception)
to September 30, 2004 $10.96 0.04 (0.41) (0.37)
CLASS C
Period Ended March 31, 2006
(unaudited) $12.53 (0.07) 2.59 2.52
Year Ended September 30, 2005 $10.55 (0.14) 3.09 2.95
February 19, 2004 (inception)
to September 30, 2004 $11.29 (0.02) (0.72) (0.74)
CLASS Z
Period Ended March 31, 2006
(unaudited) $13.00 (0.02) 2.72 2.70
Year Ended September 30, 2005 $10.60 0.06 3.31 3.37
Year Ended September 30, 2004 $ 8.41 0.01 2.24 2.25
Year Ended September 30, 2003 $ 5.96 0.06 2.45 2.51
Year Ended September 30, 2002 $ 7.24 0.04 (1.25) (1.21)
Year Ended September 30, 2001 $11.79 0.09 (3.31) (3.22)
<Caption>
LESS DIVIDENDS AND DISTRIBUTIONS
-------------------------------------------------------
DIVIDENDS DISTRIBUTIONS TOTAL
FROM NET FROM NET DIVIDENDS
INVESTMENT REALIZED RETURN AND
INCOME GAINS OF CAPITAL DISTRIBUTIONS
---------- ------------- ---------- -------------
ICON ASIA-PACIFIC REGION FUND
Period Ended March 31, 2006
(unaudited) (0.01) - - (0.01)
Year Ended September 30, 2005 (0.03) - - (0.03)
Year Ended September 30, 2004 (0.02) - - (0.02)
Year Ended September 30, 2003 - - - -
Year Ended September 30, 2002 - - (0.03) (0.03)
Year Ended September 30, 2001 - - - -
ICON EUROPE FUND
Period Ended March 31, 2006
(unaudited) - (0.86) - (0.86)
Year Ended September 30, 2005 - - - -
Year Ended September 30, 2004 - - - -
Year Ended September 30, 2003 - - - -
Year Ended September 30, 2002 (0.02) - - (0.02)
Year Ended September 30, 2001 - - - -
ICON INTERNATIONAL EQUITY FUND
CLASS I
Period Ended March 31, 2006
(unaudited) (0.01) (0.62) - (0.63)
Year Ended September 30, 2005 - (0.97) - (0.97)
February 6, 2004 (inception)
to September 30, 2004 - - - -
CLASS C
Period Ended March 31, 2006
(unaudited) - (0.62) - (0.62)
Year Ended September 30, 2005 - (0.97) - (0.97)
February 19, 2004 (inception)
to September 30, 2004 - - - -
CLASS Z
Period Ended March 31, 2006
(unaudited) (0.03) (0.62) - (0.65)
Year Ended September 30, 2005 - (0.97) - (0.97)
Year Ended September 30, 2004 (0.06) - - (0.06)
Year Ended September 30, 2003 - (0.06) - (0.06)
Year Ended September 30, 2002 (0.04) - (0.03) (0.07)
Year Ended September 30, 2001 - (1.33) - (1.33)
</Table>
(x) Calculated using the average share method.
* The total return calculation is for the period indicated.
(a) Annualized for periods less than a year.
(b) Portfolio turnover is calculated at the Fund level.
The accompanying notes are an integral part of the financial statements.
42 Financial Highlights
<Table>
<Caption>
RATIO OF EXPENSES TO
AVERAGE NET ASSETS(A)
-------------------------
NET ASSET AVERAGE NET BEFORE AFTER
VALUE, NET ASSETS, ASSETS EXPENSE EXPENSE
END OF TOTAL END OF PERIOD FOR THE PERIOD LIMITATION/ LIMITATION/
PERIOD RETURN* (IN THOUSANDS) (IN THOUSANDS) RECOUPMENT RECOUPMENT
--------- -------- -------------- -------------- ----------- -----------
$13.49 20.03% $153,422 $110,766 1.39% N/A
$11.25 38.12% $ 48,721 $ 15,225 1.93% N/A
$ 8.17 7.51% $ 17,047 $ 14,976 1.91% N/A
$ 7.62 34.15% $ 6,084 $ 6,683 1.98% N/A
$ 5.68 (16.29)% $ 6,927 $ 12,142 1.66% N/A
$ 6.81 (33.56)% $ 19,684 $ 18,749 1.70% N/A
$17.94 21.15% $ 68,133 $ 32,952 1.57% N/A
$15.68 30.34% $ 23,243 $ 16,665 1.85% N/A
$12.03 22.26% $ 7,826 $ 7,230 2.24% N/A
$ 9.84 32.97% $ 9,262 $ 6,774 1.87% N/A
$ 7.40 (8.76)% $ 4,619 $ 5,706 2.14% N/A
$ 8.13 (19.82)% $ 7,397 $ 7,935 1.96% N/A
$14.94 21.10% $ 49,862 $ 29,508 1.70% 1.73%
$12.91 32.90% $ 15,376 $ 7,921 2.02% 1.97%
$10.59 (3.38)% $ 3,211 $ 1,960 2.32% N/A
$14.43 20.67% $ 7,578 $ 3,844 2.91% 2.55%
$12.53 29.56% $ 1,622 $ 643 4.52% 3.51%
$10.55 (6.55)% $ 183 $ 162 3.06% N/A
$15.05 21.37% $ 23,915 $ 21,250 1.41% 1.41%
$13.00 33.57% $ 15,466 $ 12,184 1.68% 1.68%
$10.60 26.79% $ 9,303 $ 10,063 1.98% N/A
$ 8.41 42.60% $ 10,587 $ 8,571 2.00% N/A
$ 5.96 (16.94)% $ 8,222 $ 13,347 1.72% N/A
$ 7.24 (30.29)% $ 14,196 $ 18,204 1.65% N/A
<Caption>
RATIO OF NET INVESTMENT INCOME TO AVERAGE
NET ASSETS(A)
--------------------------------------------
BEFORE AFTER
EXPENSE EXPENSE
LIMITATION/ LIMITATION/ PORTFOLIO
RECOUPMENT RECOUPMENT TURNOVER RATE(B)
----------- ----------- ----------------
(0.39)% N/A 87.57%
0.30% N/A 185.84%
0.20% N/A 58.62%
0.68% N/A 81.44%
(0.23)% N/A 14.43%
0.75% N/A 55.58%
(0.60)% N/A 57.65%
0.51% N/A 153.55%
(0.38)% N/A 78.57%
(0.29)% N/A 101.37%
(0.42)% N/A 12.26%
0.55% N/A 84.49%
(0.39)% (0.42)% 81.94%
0.27% 0.32% 139.23%
0.44% N/A 117.74%
(1.47)% (1.11)% 81.94%
(2.23)% (1.22)% 139.23%
(0.16)% N/A 117.74%
(0.33)% (0.33)% 81.94%
0.51% 0.51% 139.23%
0.03% N/A 117.74%
0.88% N/A 98.91%
0.48% N/A 91.99%
0.97% N/A 41.67%
</Table>
Financial Highlights 43
Notes to Financial Statements (unaudited)
March 31, 2006
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The ICON Asia-Pacific Region Fund ("Asia-Pacific Region Fund"), ICON Europe Fund
("Europe Fund") and ICON International Equity Fund ("International Equity Fund")
are series funds (individually a "Fund" and collectively, the "Funds"). The
Funds are part of the ICON Funds (the "Trust"), a Massachusetts business trust
registered under the Investment Company Act of 1940, as amended (the "1940 Act")
as an open-end investment management company. The International Equity Fund
offers three classes of shares Class I, Class C and Class Z. All classes have
equal rights as to earnings, assets and voting privileges except that each Class
may bear different distribution fees, registration costs and shareholder
servicing costs and each Class has exclusive voting rights with respect to its
distribution plan. There are 14 other active funds within the Trust. Those funds
are covered by separate prospectuses and shareholder reports.
Each Fund is authorized to issue an unlimited number of no par shares. The Funds
primarily invest in foreign securities; the Asia-Pacific Region Fund and Europe
Fund primarily invest in companies whose principal business activities fall
within specific regions. The investment objective of each Fund is long-term
capital appreciation.
The Funds may have elements of risk, including the loss of principal. There is
no assurance that the investment process will consistently lead to successful
results. An investment concentrated in sectors and industries may involve
greater risk and volatility than a more diversified investment. Investments in
foreign securities and currency transactions may involve certain considerations
and risks not typically associated with those of U.S. dollar-denominated
transactions as a result of, among other factors, the possibility of lower
government supervision and regulation of foreign securities markets and the
possibility of political or economic instability. There are also risks
associated with small- and mid-cap investing, including limited product lines,
less liquidity, and small market share.
In addition, in the normal course of business the Funds may enter into various
agreements that provide for general indemnifications. Each Fund's maximum
exposure under these arrangements is unknown as any potential exposure involves
future claims that may be made against each Fund. However, based on experience,
the Funds expect the risk of loss to be remote.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of income and expenses during the
reporting period. Actual results could differ from these estimates.
44 Notes to Financial Statements
INVESTMENT VALUATION
The Funds' securities and other assets are valued at the closing price at the
close of the regular trading session of the New York Stock Exchange (the "NYSE")
(normally 4 p.m. Eastern time) each day the NYSE is open, except that (a)
securities traded primarily on the NASDAQ Stock Market ("NASDAQ") are normally
valued by a Fund at the NASDAQ Official Closing Price provided by NASDAQ each
business day; and (b) any foreign investments in the Funds traded in countries
outside of the Western Hemisphere are fair valued daily based on procedures
established by the Funds' Board of Trustees ("Board") to avoid stale prices and
to take into account, among other things, any significant events occurring after
the close of a foreign market in those regions. The Funds use pricing services
to report the market value of securities in their portfolios; if a pricing
service is not able to provide a price, or the pricing service quote of
valuation is inaccurate or does not reflect the market value of the security,
prices may be obtained through market quotations from independent broker/
dealers. If market quotations from these sources are not readily available, the
Funds' securities or other assets are valued at fair value as determined in good
faith by the Funds' Board or pursuant to procedures approved by the Board. The
valuation assigned to fair-valued securities for purposes of calculating a
Fund's net asset value ("NAV") may differ from the security's most recent
closing market price and from the prices used by other mutual funds to calculate
their NAVs.
Lacking any sales that day, the security is valued at the current closing bid
price (or yield equivalent thereof) or based on quotes from dealers making a
market for the security. Options are valued at their closing mid-price on the
principal market where the option is traded. Mid-price is the average of the
closing bid and closing ask prices. Debt securities with a remaining maturity of
greater than sixty days are valued in accordance with the evaluated bid price
supplied by the pricing service. The evaluated bid price supplied by the pricing
service is a matrix system which considers such factors as security prices,
yields, maturities and ratings. Short-term securities with remaining maturities
of sixty days or less are generally valued at amortized cost or original cost
plus accrued interest, which approximates market value. Currency rates as of the
close of the New York Stock Exchange are used to convert foreign security values
into U.S. dollars.
Foreign securities traded in countries outside of the Western Hemisphere are
fair valued daily by utilizing the quotations of an independent pricing service,
unless the Funds' adviser determines that use of another valuation methodology
is appropriate. The pricing service uses statistical analyses and quantitative
models to adjust local market prices using factors such as subsequent movement
and changes in the prices of indexes, securities and exchange rates in other
markets in determining fair value as of the time a Fund calculates its net asset
value.
Notes to Financial Statements 45
Notes to Financial Statements (unaudited) (continued)
REPURCHASE AGREEMENTS
Repurchase agreements, if held by the Funds, are fully collateralized by U.S.
Government securities and such collateral is in the possession of the Funds'
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. In the event of default on the obligation to repurchase, the Funds
have the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. In the event of default or bankruptcy by the
other party to the agreement, realization and/or retention of the collateral or
proceeds may be subject to legal proceedings. No repurchase agreements were
purchased or sold by the Funds during the period ended March 31, 2006.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are translated into U.S. dollars at the prevailing rates of exchange daily.
Income and expenses are translated into U.S. dollars at the prevailing exchange
rate on the respective dates of the transactions. Purchases and sales of
securities are translated into U.S. dollars at the contractual currency exchange
rates established at the time of each trade.
The Funds isolate that portion of the results of operations resulting from
changes in foreign exchange rates on investments from the fluctuations arising
from changes in market prices of securities held. Net unrealized appreciation or
depreciation on investments and foreign currency translations arise from changes
in the value of assets and liabilities, resulting from changes in the exchange
rates and changes in market prices of securities held.
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into short-term forward foreign currency contracts in
connection with planned purchases or sales of securities as a hedge against
fluctuations in foreign exchange rates pending the settlement of transactions in
foreign securities. A forward foreign currency contract is an agreement between
contracting parties to exchange an amount of currency at some future time with
an agreed upon rate.
These contracts are marked-to-market daily and the related appreciation or
depreciation of the contract is presented in the Statements of Assets and
Liabilities. Net realized gains and losses on foreign currency transactions
represent disposition of foreign currencies, and the difference between the
amount recorded at the time of the transaction and the U.S. dollar amount
actually received. Any realized gain or loss incurred by the Funds due to
foreign currency translation is included in the Statements of Operations. The
46 Notes to Financial Statements
Funds did not enter into any foreign currency contracts during the period ended
March 31, 2006.
FUTURES CONTRACTS
The Funds may invest in financial futures contracts for the purpose of hedging
their existing securities or securities it intends to purchase against
fluctuations in fair value caused by changes in prevailing markets. Upon
entering into a financial futures contract, the Fund is required to pledge to
the broker an amount of cash and/or other assets equal to a certain percentage
of the contract amount (initial margin deposit). Subsequent payments, known as
"variation margin," are made or received by the Fund each day, depending on the
daily fluctuations in the fair value of the underlying security. The Fund
recognizes a gain or loss equal to the daily variation margin. Should market
conditions move unexpectedly, the Fund may not achieve the anticipated benefits
of the financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts and the underlying hedged assets. The Funds held no
financial futures contracts during the period ended March 31, 2006.
OPTIONS TRANSACTIONS
Each Fund may write put and call options only if it owns an offsetting position
in the underlying security. When a Fund writes a put or call option, an amount
equal to the premium received is included in the Statement of Assets and
Liabilities as a liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. If an option
expires on its stipulated expiration date or if the Fund enters into a closing
purchase transaction, a gain or loss is realized. If a written call option is
exercised, a gain or loss is realized for the sale of the underlying security
and the proceeds from the sale are increased by the premium originally received.
If a written put option is exercised, the cost of the security acquired is
decreased by the premium originally received. As a writer of an option, a Fund
has no control over whether the underlying securities are subsequently sold
(call) or purchased (put) and, as a result, bears the market risk of an
unfavorable change in the price of the security underlying the written option.
Each Fund may also purchase put and call options. When a Fund purchases a call
or put option, an amount equal to the premium paid is included in the Fund's
Statement of Assets and Liabilities as an investment, and is subsequently
marked-to-market to reflect the current market value of the option. If an option
expires on the stipulated expiration date or if the Fund enters into a closing
sale transaction, a gain or loss is realized. If the Fund exercises a call, the
cost of the security acquired is increased by the premium paid for the call. If
the Fund exercises a put option, a gain or loss is realized from the sale of the
underlying security, and the proceeds from such a sale are decreased by the
premium
Notes to Financial Statements 47
Notes to Financial Statements (unaudited) (continued)
originally paid. Written and purchased options are non-income producing
securities. The Funds did not enter into any option transactions during the
period ended March 31, 2006.
INCOME TAXES
The Funds intend to qualify as regulated investment companies under Subchapter M
of the Internal Revenue Code and, accordingly, the Funds will generally not be
subject to federal and state income taxes, or federal excise taxes to the extent
that they intend to make sufficient distributions of net investment income and
net realized capital gains.
Dividends received by shareholders of the Funds which are derived from foreign
source income and foreign taxes paid by the Funds are to be treated, to the
extent allowable under the Code, as if received and paid by the shareholders of
the Funds. Dividends paid by the Funds from net investment income and
distributions of net realized short-term gains are, for federal income tax
purposes, taxable as ordinary income to shareholders.
Dividends and distributions to shareholders are recorded by the Funds on the
ex-dividend/distribution date. The Funds distribute net realized capital gains,
if any, to shareholders at least annually, if not offset by capital loss
carryovers. Income distributions and capital gain distributions are determined
in accordance with income tax regulations, which may differ from accounting
principles generally accepted in the United States of America.
INVESTMENT INCOME
Dividend income is recorded on the ex-dividend date. Non-cash dividends included
in dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Certain dividends
from foreign securities will be recorded as soon as the Funds are informed of
the dividend if such information is obtained subsequent to the ex-dividend date.
INVESTMENT TRANSACTIONS
Security transactions are accounted for no later than one business day after
trade date. However, for financial reporting purposes security transactions are
accounted for on trade date. Gains and losses on securities sold are determined
on the basis of identified cost.
ALLOCATION OF INCOME AND EXPENSES
Expenses which cannot be directly attributed to a specific fund in the Trust are
apportioned between all funds based upon relative net assets. Each class of the
International Equity Fund's bears expenses incurred specifically on its behalf
and, in addition, each class bears a portion of general expenses, based upon
relative net assets of each class. In calculating the net asset value of the
shares
48 Notes to Financial Statements
in the various classes of the International Equity Fund, investment income,
realized and unrealized gains and losses and expenses other than class specific
expenses are allocated daily to each class of shares based upon the proportion
of net assets.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEES
ICON Advisers, Inc. ("ICON") serves as the investment adviser to the Funds and
is responsible for managing the Funds' portfolios of securities. ICON receives a
monthly management fee that is computed daily at an annual rate of 1.00% of each
Fund's average daily net assets.
Effective May 1, 2005, ICON has contractually agreed to reimburse operating
expenses (exclusive of brokerage, interest, taxes, and extraordinary expenses)
of the International Equity Fund to the extent necessary to ensure that the
Fund's operating expenses do not exceed 2.55% for Class C, 1.80% for Class I and
1.55% for Class Z. The International Equity Fund expense limitation will
continue in effect until at least January 29, 2016. To the extent ICON
reimburses or absorbs fees and expenses, it may seek payment of such amounts for
up to three years after the expenses were reimbursed or absorbed. The
International Equity Fund will make no such payment, however, if the total Fund
operating expenses exceed the expense limits in effect at the time the expenses
were reimbursed or at the time these payments are proposed.
For the period ended March 31, 2006, ICON's net reimbursement for the
International Equity Fund was $3,163. This expense reimbursement is subject to
recoupment by ICON based on a rolling three-year period. This reimbursement is
due to expire in 2009.
TRANSFER AGENT, CUSTODY AND ACCOUNTING FEES
BISYS Fund Services Ohio, Inc. ("BISYS") is the Fund Accounting Agent for the
Funds. For its services, the Trust pays BISYS 0.03% on the first $1.75 billion
of net assets, 0.0175% on net assets over $1.75 billion and up to $5 billion,
and 0.01% on net assets in excess of $5 billion.
Brown Brothers Harriman ("BBH") is the custodian of the Trust's investments. For
domestic custody services, the Trust pays BBH 0.0065% on the first $50 million
of average net assets and 0.0050% on domestic assets above $50 million, plus
certain transaction charges. For foreign custody services, the Trust pays BBH
0.03% on foreign assets plus certain transaction charges.
Boston Financial Data Services, Inc. is the Trust's transfer agent. For these
services, the Trust pays an account fee of $13.25 per open account, $7.00 per
Notes to Financial Statements 49
Notes to Financial Statements (unaudited) (continued)
networked account, $1.80 per closed account, plus certain other transaction and
cusip charges.
ADMINISTRATIVE SERVICES
The Trust has entered into an administrative services agreement with ICON
pursuant to which ICON oversees the administration of the Trust's business and
affairs. As of January 31, 2006, this agreement provides for an annual fee of
0.05% on the Funds' first $1.5 billion of average daily net assets, 0.045% on
the next $1.5 billion of average daily net assets, 0.040% on the next $2 billion
of average daily net assets and 0.030% on average daily net assets over $5
billion. Prior to that date, This agreement provided for an annual fee to ICON
of 0.05% on the Funds' first $1.5 billion of average daily net assets and 0.045%
on average daily net assets in excess of $1.5 billion. The administrative
services agreement provides that ICON will not be liable for any error of
judgment, mistake of law, or any loss suffered by the Trust in connection with
matters to which the administrative services agreement relates, except for a
loss resulting from willful misfeasance, bad faith or negligence by ICON in the
performance of its duties.
ICON has entered into a sub-administration agreement with BISYS pursuant to
which BISYS assists ICON with the administration and business affairs of the
Trust. For its services, ICON pays BISYS at an annual rate of 0.025% on the
first $1.75 billion of Trust assets and 0.015% on assets above $1.75 billion.
DISTRIBUTION FEES
The International Equity Fund has adopted a Distribution Plan pursuant to Rule
12b-1 under the 1940 Act ("12b-1 Plan") under which the Funds are authorized to
compensate the Funds' distributor, ICON Distributors, Inc. ("IDI") (an affiliate
of the adviser) for the sale and distribution of shares. Under the 12b-1 Plan,
Class I shareholders of the International Equity Fund pay an annual 12b-1 and
service fee of 0.25% of average daily net assets. The Class C shareholders of
the International Equity Fund pay an annual 12b-1 and service fee of 1.00% of
average daily net assets.
RELATED PARTIES
Certain Officers and Directors of ICON are also Officers and Trustees of the
Funds; however, such Officers and Trustees (with the exception of the Chief
Compliance Officer, "CCO") receive no compensation from the Funds. The CCO's
salary is paid 90% by the Funds and 10% by the Adviser. For the period ended
March 31, 2006, the total related amounts paid by the Trust under this agreement
are included in Other Expenses on the Statement of Operations.
50 Notes to Financial Statements
3. LINE OF CREDIT
The Funds entered into Lines of Credit agreements with BBH; the maximum
borrowing is limited to 25% of eligible securities held by the portfolio subject
to a maximum borrowing limit by the Trust of $115 million. Interest is charged
at LIBOR plus 2.00% which was 6.83% at March 31, 2006.
<Table>
<Caption>
AVERAGE BORROWING
(10/1/05 -- 3/31/06)
- ----------------------------------------------------------------------------------
ICON Asia-Pacific Region Fund** $2,224,794
ICON Europe Fund 202,937
ICON International Equity Fund 599,075
</Table>
** Fund had outstanding borrowings as of March 31, 2006.
4. FEDERAL INCOME TAX
Income and capital gain distributions are determined in accordance with income
tax regulations that may differ from accounting principles that are generally
accepted in the United States of America. These differences are due to differing
treatments for items such as net short-term gains, deferrals of wash losses,
foreign currency transactions, net investment losses, and capital loss
carryforwards.
The tax components of capital shown in the following tables represent losses or
deductions the Funds may be able to offset against income and gains recognized
in future years and post October loss deferrals. The accumulated losses noted in
the following tables represent net capital loss carryforwards as of September
30, 2005 that may be available to offset future realized capital gains and
thereby reduce future taxable income distributions.
<Table>
<Caption>
AMOUNT EXPIRATION DATE
- -------------------------------------------------------------------------------------
ICON Asia-Pacific Region Fund $2,249,864 September 30, 2007
3,254,268 September 30, 2009
1,330,946 September 30, 2010
952,529 September 30, 2011
</Table>
During the year ended September 30, 2005 the ICON Asia-Pacific Region Fund and
the ICON Europe Fund utilized capital loss carryforwards of $1,844,287 and
$832,262, respectively.
Notes to Financial Statements 51
Notes to Financial Statements (unaudited) (continued)
The aggregate gross unrealized appreciation and depreciation of securities held
by the Funds and the total cost of securities for federal tax purposes as of
March 31, 2006 were as follows:
<Table>
<Caption>
UNREALIZED UNREALIZED NET APPRECIATION
FUND COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
- -----------------------------------------------------------------------------------------
ICON Asia-Pacific Region
Fund $132,766,926 $22,461,667 $(1,425,679) $21,035,988
ICON Europe Fund 63,520,446 9,735,519 (397,231) 9,338,288
ICON International
Equity Fund 69,768,652 13,699,518 (378,312) 13,321,206
</Table>
5. SUBSEQUENT EVENT
Effective June 1, 2006, the existing shares of the ICON Asia-Pacific Region Fund
and ICON Europe Fund are re-designated as ICON Asia-Pacific Region - Class S and
ICON Europe Fund - Class S, respectively,
Effective June 1, 2006, the Class C shares of ICON International Equity Fund
will impose a 1% contingent deferred sales charge ("CDSC") on shares redeemed
within one-year of purchase. Shares purchased prior to June 1, 2006 will not be
subject to the CDSC.
52 Notes to Financial Statements
Other Information (unaudited)
PORTFOLIO HOLDINGS
A list of each ICON Fund's Top 10 holdings is available at www.iconadvisers.com
on or about 15 days following each month end. Each ICON Fund also files a
complete schedule of portfolio holdings for the first and third quarters of its
fiscal year with the SEC on Form N-Q. The ICON Funds' Forms N-Q are available at
www.sec.gov or may be reviewed and copied at the Commission's Public Reference
Room in Washington, DC. Information about the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
PROXY VOTING
A description of the policies and procedures the ICON Funds use to vote proxies
is available at www.iconadvisers.com; without charge upon request by calling
1-800-764-0442; or on the SEC's website at www.sec.gov.
Information about how the ICON Funds voted proxies related to each Fund's
portfolio securities during the 12-month period ended June 30 is available at
www.iconadvisers.com or on the SEC's website at www.sec.gov.
FOR MORE INFORMATION
This report is for the general information of the Funds' shareholders and is not
authorized for distribution to prospective investors unless preceded or
accompanied by a current prospectus. You may obtain a copy of the prospectus,
which contains information about the investment objectives, risks, charges,
expenses, and share classes of each ICON Fund, by visiting www.iconadvisers.com
or by calling 1-800-764-0442. Please read the prospectus carefully before
investing.
ICON Distributors, Inc., Distributor
Other Information 53
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[ICON FUNDS LOGO]
<Table>
For more information about the ICON Funds, contact us:
By Telephone 1-800-764-0442
By Mail ICON Funds
P.O. Box 55452
Boston, MA 02205-8165
In Person ICON Funds
5299 DTC Boulevard, 12(th) Floor
Greenwood Village, CO 80111
On the Internet www.iconadvisers.com
By E-Mail info@iconadvisers.com
</Table>
[ICON FUNDS LOGO]
1-800-764-0442
www.iconadvisers.com
I-148-FOR
March 31, 2006
(unaudited)
Investment Update
ICON SECTOR FUNDS
ICON CONSUMER DISCRETIONARY FUND
ICON ENERGY FUND
ICON FINANCIAL FUND
ICON HEALTHCARE FUND
ICON INDUSTRIALS FUND
ICON INFORMATION TECHNOLOGY FUND
ICON LEISURE AND CONSUMER STAPLES FUND
ICON MATERIALS FUND
ICON TELECOMMUNICATION & UTILITIES FUND
Semiannual Report
(ICON FUNDS LOGO)
Table of Contents
<Table>
ABOUT THIS REPORT 2
MESSAGE FROM ICON FUNDS 4
MANAGEMENT OVERVIEW AND SCHEDULE OF INVESTMENTS
ICON Consumer Discretionary Fund 7
ICON Energy Fund 13
ICON Financial Fund 19
ICON Healthcare Fund 25
ICON Industrials Fund 31
ICON Information Technology Fund 37
ICON Leisure and Consumer Staples Fund 43
ICON Materials Fund 49
ICON Telecommunication & Utilities Fund 55
SIX MONTH HYPOTHETICAL EXPENSE EXAMPLE 61
FINANCIAL STATEMENTS 64
FINANCIAL HIGHLIGHTS 72
NOTES TO FINANCIAL STATEMENTS 76
OTHER INFORMATION 84
</Table>
[RECYCLE LOGO]
About This Report
HISTORICAL RETURNS
All total returns mentioned in this report account for the change in a Fund's
per-share price and the reinvestment of any dividends, capital gain
distributions, and tax return of capital. If your account is set up to receive
Fund distributions in cash rather than to reinvest them, your actual return may
differ from these figures. The Funds' performance results do not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or on the
redemption of Fund shares.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance results represent
past performance, and current performance may be higher or lower. Please call
1-800-764-0442 or visit www.iconadvisers.com for performance results current to
the most recent month-end.
PORTFOLIO DATA
This report reflects ICON's views, opinions, and portfolio holdings as of March
31, 2006, the end of the reporting period. The information is not a complete
analysis of every aspect of any sector, industry, security, or the Funds.
Opinions and forecasts regarding industries, companies and/or themes, and
portfolio composition and holdings, are subject to change at any time based on
market and other conditions, and should not be construed as a recommendation of
any specific security. Each Fund's holdings as of March 31, 2006 are included in
each Fund's Schedule of Investments.
Certain companies' stock performance during the period is mentioned throughout
the Management Overviews. While ICON's quantitative investment methodology
primarily considers financial data, various company factors may impact a stock's
performance, and therefore, Fund performance.
There are risks associated with mutual fund investing, including the loss of
principal. There is no assurance that the investment process will consistently
lead to successful results. An investment concentrated in sectors and industries
may involve greater risk and volatility than a more diversified investment.
Investments in foreign securities may entail unique risks, including political,
market and currency risks. There are also risks associated with small- and mid-
cap investing, including limited product lines, less liquidity and small market
share.
2 About This Report
ICON'S INVESTMENT APPROACH
The Funds employ an all-cap investment strategy, identifying securities we
believe are underpriced regardless of their location on the conventional style
grid. Our system is not limited by restrictions on market capitalization or
investment style, and searches for potential industry leadership wherever and
whenever it may emerge.
The Funds do not utilize static valuation metrics such as price-to-earnings
(P/E). As we believe these measures do not adequately represent intrinsic value,
which can vary over time. Instead, we calculate proprietary value-to-price (V/P)
ratios that considers the effects of historical and projected earnings,
projected growth, risk and interest rates (opportunity cost). By combined our
determination of value with relative strength (RS), we aim to compute leading
industry themes that are poised, in our view, to outperform the sector
benchmark.
For all corporate earnings and other financial information we rely on the
integrity of the publicaly available financial information provided to the
United States Securities and Exchange Commission.
COMPARATIVE INDEXES
The comparative indexes discussed in this report are meant to provide a basis
for judging the Funds' performance against specific securities indexes. Each
index shown accounts for both change in security price and reinvestment of
dividends and distributions (except as noted), but does not reflect the costs of
managing a mutual fund. The Funds' portfolios may significantly differ in
holdings and composition from the indexes. Individuals cannot invest directly in
an index.
- - The unmanaged Standard & Poor's (S&P) Super Composite 1500 Index is a
broad-based capitalization-weighted index comprising 1,500 stocks of large-
cap, mid-cap, and small-cap U.S. companies.
- - The capitalization-weighted S&P 1500 Sector and Industry Indexes are based on
specific classifications determined by S&P.
- - The unmanaged NASDAQ Composite ("NASDAQ") Index is a broad-based
capitalization-weighted index of all NASDAQ National Market and Small-Cap
stocks.
- - The unmanaged Merrill Lynch 1-Year U.S. Treasury Bill Index consists of a
single issue with the longest maturity. The issue is replaced on a monthly
basis to maintain the characteristics of the index.
Index returns and statistical data included in this report are provided by
Bloomberg and FactSet Research Systems.
About This Report 3
Message from ICON Funds
- --------------------------------------------------------------------------------
Conflicting forces convinced many investors that the equity markets were in the
throes of a sideways trading range.
- --------------------------------------------------------------------------------
Dear ICON Shareholder:
Thank you for your continued investment in the ICON Sector Funds and welcome to
those of you receiving this report for the first time.
ICON employs a value-based, bottom-up investment system in tactical pursuit of
industries we believe are poised to outperform the broader market. We are
quantitative, unemotional and objective, and find strength in numbers.
Whether you invest in our Sector Funds, such as the ICON Energy Fund, our U.S.
Diversified Funds, such as the ICON Core Equity Fund, or our International
Funds, such as the ICON Asia-Pacific Region Fund, each is powered by ICON's
unique systematic discipline.
A CLASSIC STOCK MARKET BATTLE
"Strength in numbers" is an apt phrase to describe the fiscal six-month period,
as conflicting forces convinced many investors that the equity markets were in
the throes of a sideways trading range. The fact is stocks rallied nicely amid a
mid-October dip and lackluster year-end finish. Despite posting solid gains
against a backdrop of widespread guessing and reacting, the move up was
stealth-like, so quiet that the word "rally" was conspicuous by its absence.
Much of the guessing was focused on the likelihood of continued monetary
tightening and future policy direction under new Federal Reserve Chairman Ben
Bernanke. At the same time, investors reacted strongly to movements in energy
prices, even though we had not seen appreciable increases in inflation or
long-term interest rates.
What we did see was a classic stock market battle that periodically pits
prosperity and healthy corporate earnings against higher interest rates. Over
the past few years, many market observers feared that events such as terrorism,
war, hurricanes and rising oil prices would stall the economy. However, as
investors realized that economic prosperity and higher earnings defied these
even-related concerns, stocks prices have trended higher.
4 Message from ICON Funds
We find strength in numbers, reflecting the fact that
we are quantitative, unemotional and objective.
(CRAIG T. CALLAHAN PHOTO)
Craig T. Callahan
President
RACING TO CATCH UP WITH VALUE
- --------------------------------------------------------------------------------
We believe recent uptrends in long-term interest rates have acted as a drag on
the stock market, inhibiting the normal growth of equity valuations.
- --------------------------------------------------------------------------------
While stock prices have continued to move higher, we believe recent uptrends in
long-term interest rates have acted as a drag on the stock market, inhibiting
the normal growth of equity valuations. Although the rise in AAA bond yields has
been modest compared to the dramatic increases in the federal funds rate,
intrinsic value has declined according to our system.
Although further monetary tightening remains a distinct possibility, our system
is designed in such a way that we do not have to "guess the Fed" or predict the
future. We simply have to recognize underpricing and overpricing when either
condition occurs. While interest rate factors have cut into equity valuations,
we believe these effects have been offset by rising earnings. Should conditions
change, and value no longer supports higher equity prices, stocks could be
viewed as overpriced and call for a more cautious stance on our part.
To date, this has not come to pass, and we continue to view stock prices, in
general, to be below our estimate of intrinsic value. As long as this is the
case, we will continue to ride out the volatility, enabling investors to
participate in what are typically unpredictable market advances, where price
races to catch up with value.
BULLISH POSTURE PROVED CORRECT
It is our contention that investors have been continually fooled on the upside
by the prosperity of cyclical companies. We have seen these industry and sector
themes remain in place for the past three years, and this most recent reporting
period was no exception. Industries in economically sensitive areas such as
Energy, Materials, Industrials, and Information Technology led the way, while
industries in the more defensive-oriented Utilities, Healthcare and Consumer
Staples sectors lagged their cyclical peers.
Given the consistently strong relative performance of the ICON Sector Funds,
this comes as no surprise to us. Based on valuation, our bullish, fully invested
posture proved to be absolutely correct, and we are pleased to have shared this
success with you.
Message from ICON Funds 5
Message from ICON Funds (continued)
Still, it is important to remember that value is never stagnant. Value moves as
earnings grow, and so far robust earnings growth has won the battle versus
rising interest rates. Whether this continues to be the case is not something we
choose to predict.We remain highly confident, however, in the ability of our
system to identify theme changes when and if they occur.
- --------------------------------------------------------------------------------
Based on valuation, our bullish, fully invested posture proved to be absolutely
correct.
- --------------------------------------------------------------------------------
In closing, we are most grateful for the privilege of guiding you through these
challenging markets. For current market updates, as well as up-to-date Fund
performance and account information, we invite you to visit our website at
www.iconadvisers.com.
Yours truly,
/s/ Craig T. Callahan
Craig T. Callahan, DBA
Chairman of the Board of Trustees and President of the Adviser
Consider the investment objectives, risks, charges, expenses, and share classes
of each ICON Fund carefully before investing. The prospectus contains this and
other information about the Funds and is available by visiting
www.iconadvisers.com or calling 1-800-764-0442. Please read the prospectus
carefully before investing.
An investment in a non-diversified sector fund or region fund may involve
greater risk and volatility than a more diversified fund. Investments in foreign
securities may entail unique risks, including political, market, and currency
risks. The ICON system relies on the integrity of financial statements released
to the market as part of our analysis.
6 Message from ICON Funds
Management Overview
ICON Consumer Discretionary Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 100.4%
Top 10 Equity Holdings 22.5%
Number of Stocks 84
Short-Term Investments 0.3%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Jos. A. Bank Clothiers, Inc. 2.6%
Lowe's Cos., Inc. 2.5%
Furniture Brands International, Inc. 2.5%
Drew Industries, Inc. 2.3%
Honda Motor Co., Ltd. - ADR 2.2%
Ethan Allen Interiors, Inc. 2.2%
Brown Shoe Co., Inc. 2.1%
Matsushita Electric Industrial Co., Ltd. - ADR 2.1%
Christopher & Banks Corp. 2.0%
The Home Depot, Inc. 2.0%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Consumer Discretionary Fund appreciated 9.62% for the six-month
period ended March 31, 2006, outpacing the 5.29% return of its
sector-specific benchmark, the S&P 1500 Consumer Discretionary Index, as well
as the 7.08% return for its broad benchmark, the S&P 1500 Index. Total
returns for other periods as of March 31, 2006 are listed on page 10.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. Consumer Discretionary issues posted reasonable gains over the six-month
period. However, other leading sectors, including the economically sensitive
Materials, Industrials and Financials groups, dominated the market.
We believe the portfolio's industry tilts toward such leading areas as auto
parts & equipment, automotive retail and apparel retail enabled the Fund to
outperform the broad S&P 1500 Index.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Among significant industry contributors were the overweight auto parts &
equipment and apparel retail groups, as well as automotive retail, catalog
retail, and automotive manufacturers. On average, the combined groups
comprised nearly half of the Fund's net assets.
By contrast, the Fund's exposure to homebuilding, apparel accessories &
luxury goods, and household appliances combined to detract from Fund returns.
The homebuilding area, a previous market leader, lagged most, as the sharp
rise in interest rates during the first quarter appeared to trigger a
sell-off in the group.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE CONSUMER DISCRETIONARY SECTOR?
A. Heading into the new fiscal year, the Consumer Discretionary sector remains,
under our model, undervalued. Despite concerns over increasing commodity
prices and rising interest rates, consumer confidence and spending have both
held steady. Moreover, underlying fundamentals within consumer-related issues
continue to be strong. At the same time, global economic conditions remain
favorable as inflation and interest rates have stayed manageable. Barring a
sustained, sharp rise in these variables and other variables, we believe the
discounted Consumer Discretionary sector is poised to assume market
leadership over the next six to twelve months.
Management Overview 7
Management Overview (continued)
ICON Consumer Discretionary Fund
[ROBERT STRAUS, CMT PHOTO]
Robert Straus, CMT
Portfolio Manager
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - The principal driver of the Fund's relative outperformance was its value-
driven, active investment style.
- - Among significant industry contributors were the overweight auto parts &
equipment and apparel retail groups, automotive retail, catalog retail, and
automotive manufacturers.
- - The Fund's exposure to homebuilding, apparel accessories & luxury goods, and
household appliances detracted from returns.
8 Management Overview
INDUSTRY COMPOSITION
as of March 31, 2006
<Table>
Apparel Retail 18.6%
Home Furnishings 9.2%
Automotive Retail 8.6%
Auto Parts & Equipment 8.4%
Footwear 8.2%
General Merchandise Stores 6.4%
Automobile Manufacturers 5.1%
Home Furnishing Retail 5.1%
Home Improvement Retail 4.8%
Consumer Electronics 4.0%
Department Stores 3.7%
Apparel Accessories & Luxury Goods 3.1%
Specialized Consumer Services 2.9%
Specialty Stores 2.4%
Education Services 2.3%
Catalog Retail 1.9%
Home Building 1.6%
Motorcycle Manufacturers 1.0%
Computer & Electronics Retail 0.9%
Household Appliances 0.9%
Technology Distributors 0.7%
Construction Materials 0.6%
</Table>
Percentages are based upon net assets.
Management Overview 9
Management Overview (continued)
ICON Consumer Discretionary Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTH* 1 YEAR 5 YEARS 7/9/97
- -------------------------------------------------------------------------------------------
ICON Consumer Discretionary Fund 9.62% 7.48% 9.38% 4.97%
- -------------------------------------------------------------------------------------------
S&P 1500 Consumer Discretionary Index 5.29% 3.36% 4.84% 6.73%
- -------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 6.49%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The performance of the
S&P 1500 Consumer Discretionary Index includes the reinvestment of dividends and
capital gain distributions beginning on January 1, 2002. Additional information
about these performance results and the comparative indexes can be found on
pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON CONSUMER S&P 1500 CONSUMER
DISCRETIONARY FUND DISCRETIONARY INDEX S&P 1500 INDEX
------------------ ------------------- --------------
7/9/97 10000.00 10000.00 10000.00
10970.00 10892.00 10597.00
9810.00 11268.00 10852.00
3/31/98 11141.00 13276.00 12321.00
10851.00 14327.00 12620.00
7870.00 11778.00 11262.00
10360.00 15109.00 13709.00
3/31/99 10033.00 16371.00 14207.00
11067.00 17232.00 15312.00
9900.00 15612.00 14339.00
10852.00 18199.00 16485.00
3/31/00 10504.00 17620.00 16994.00
9797.00 16082.00 16554.00
9449.00 15341.00 16548.00
9603.00 14752.00 15338.00
3/31/01 9757.00 13937.00 13550.00
11364.00 15401.00 14440.00
9173.00 12045.00 12290.00
12121.00 14467.00 13705.00
3/31/02 13380.00 14959.00 13837.00
13605.00 13358.00 12059.00
10360.00 11065.00 9976.00
9807.00 11319.00 10786.00
3/31/03 9080.00 11069.00 10425.00
11414.00 13277.00 12064.00
12069.00 13661.00 12439.00
13769.00 15642.00 13976.00
3/31/04 14178.00 16036.00 14275.00
14095.00 15910.00 14523.00
13000.00 15725.00 14251.00
14535.00 17895.00 15624.00
3/31/05 14208.00 17079.00 15313.00
14751.00 17108.00 15576.00
13932.00 16766.00 16168.00
14123.00 17039.00 16511.00
3/31/06 15272.00 17653.00 17312.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 7/9/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
10 Management Overview
Schedule of Investments
ICON Consumer Discretionary Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
COMMON STOCKS (100.4%)
145,300 99 Cents Only
Stores(a) $ 1,970,268
45,500 A.C. Moore Arts &
Crafts, Inc.(a) 837,200
42,200 Aaron Rents, Inc. 1,146,574
26,600 Abercrombie &
Fitch Co. 1,550,780
30,600 Advance Auto
Parts, Inc. 1,274,184
49,100 Aeropostale,
Inc.(a) 1,480,856
108,400 Aftermarket
Technology
Corp.(a) 2,450,924
35,600 America's
Car-Mart, Inc.(a) 765,400
39,300 American Eagle
Outfitters, Inc. 1,173,498
44,300 Ann Taylor Stores
Corp.(a) 1,629,797
209,900 Ashworth, Inc.(a) 2,084,307
55,000 AutoNation,
Inc.(a) 1,185,250
27,400 AutoZone, Inc.(a) 2,731,506
31,200 Borders Group,
Inc. 787,488
28,800 BorgWarner, Inc. 1,729,152
63,000 Brown Shoe Co.,
Inc. 3,306,240
102,600 Cache, Inc.(a) 1,881,684
52,400 Cavco Industries,
Inc.(a) 2,546,116
136,300 Christopher &
Banks Corp. 3,163,523
62,850 Coldwater Creek,
Inc.(a) 1,747,230
70,300 Cost Plus, Inc.(a) 1,202,130
42,300 Craftmade
International,
Inc. 782,127
11,800 Dick's Sporting
Goods, Inc.(a) 468,106
110,700 Dollar Tree
Stores, Inc.(a) 3,063,069
101,500 Drew Industries,
Inc.(a) 3,608,325
14,700 Eagle Materials,
Inc. 937,272
79,800 Ethan Allen
Interiors, Inc. 3,353,196
104,500 Family Dollar
Stores, Inc. 2,779,700
29,200 Federated
Department Stores,
Inc. 2,131,600
37,000 Fossil, Inc.(a) 687,460
159,500 Furniture Brands
International,
Inc. 3,909,345
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
29,700 GameStop Corp. -
Class A(a) $ 1,400,058
14,000 Gildan Activewear,
Inc. - Class A(a) 665,280
60,100 Group 1
Automotive, Inc. 2,857,154
24,200 Guess?, Inc.(a) 946,462
29,000 Harley-Davidson,
Inc. 1,504,520
26,800 Harman
International
Industries, Inc. 2,978,284
181,200 Haverty Furniture
Cos., Inc. 2,600,220
27,000 Helen of Troy,
Ltd.(a) 572,400
110,800 Honda Motor Co.,
Ltd. - ADR 3,430,368
46,800 Insight
Enterprises,
Inc.(a) 1,030,068
20,100 ITT Educational
Services, Inc.(a) 1,287,405
38,500 J.C. Penney Co.,
Inc. 2,325,785
92,000 Jackson Hewitt Tax
Services, Inc. 2,905,360
38,000 Johnson Controls,
Inc. 2,885,340
83,500 Jos. A. Bank
Clothiers, Inc.(a) 4,003,825
26,000 Kellwood Co. 816,140
23,700 Keystone
Automotive
Industries,
Inc.(a) 1,000,377
22,400 Kohl's Corp.(a) 1,187,424
111,600 La-Z-Boy, Inc. 1,897,200
24,000 Laureate
Education, Inc.(a) 1,281,120
78,900 Leggett & Platt,
Inc. 1,922,793
19,900 Liz Claiborne,
Inc. 815,502
61,000 Lowe's Cos., Inc. 3,930,840
146,700 Matsushita
Electric
Industrial Co.,
Ltd. - ADR 3,247,938
40,400 Matthews
International
Corp. - Class A 1,545,704
36,000 Mohawk Industries,
Inc.(a) 2,905,920
22,200 Nike, Inc. - Class
B 1,889,220
80,100 O'Reilly
Automotive,
Inc.(a) 2,928,456
46,000 Pacific Sunwear of
California,
Inc.(a) 1,019,360
</Table>
Schedule of Investments 11
Schedule of Investments (continued)
ICON Consumer Discretionary Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
19,700 PETCO Animal
Supplies, Inc.(a) $ 464,329
84,000 Rent-A-Center,
Inc.(a) 2,149,560
71,700 Ross Stores, Inc. 2,092,923
44,650 Staples, Inc. 1,139,468
84,900 Steven Madden,
Ltd. 3,013,950
4,900 Strayer Education,
Inc. 501,074
178,700 Stride Rite Corp. 2,587,576
35,900 Target Corp. 1,867,159
67,600 Tenneco, Inc.(a) 1,466,244
65,100 The Cato Corp. 1,553,286
116,800 The Finish Line,
Inc. 1,921,360
91,700 The Gymboree
Corp.(a) 2,387,868
72,900 The Home Depot,
Inc. 3,083,670
10,700 The Sherwin-
Williams Co. 529,008
46,000 The Sportsman's
Guide, Inc.(a) 1,218,540
51,500 The Timberland
Co. - Class A(a) 1,762,845
38,800 Thor Industries,
Inc. 2,070,368
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
106,700 TJX Cos., Inc. $ 2,648,294
31,500 Too, Inc.(a) 1,082,025
10,600 Toyota Motor
Corp. - ADR 1,154,340
20,100 Universal
Technical
Institute, Inc.(a) 605,010
35,700 United Auto Group,
Inc. 1,535,100
19,300 Williams-Sonoma,
Inc.(a) 818,320
44,600 Winnebago
Industries, Inc. 1,353,164
------------
TOTAL COMMON STOCKS
(COST $137,891,672) 155,150,311
SHORT-TERM INVESTMENTS (0.3%)
$489,522 Brown Brothers
Harriman Time
Deposit, 4.07%,
04/03/06# 489,522
------------
TOTAL SHORT-TERM INVESTMENT
(COST $489,522) 489,522
------------
TOTAL INVESTMENTS 100.7%
(COST $138,381,194) 155,639,833
------------
LIABILITIES LESS OTHER ASSETS
(0.7%) (1,162,504)
------------
TOTAL NET ASSETS 100.0% $154,477,329
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
12 Schedule of Investments
Management Overview
ICON Energy Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 99.9%
Top 10 Equity Holdings 31.5%
Number of Stocks 68
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Petroleo Brasileiro S.A. - ADR 4.9%
Grant Prideco, Inc. 3.5%
Ultra Petroleum Corp. 3.5%
Helix Energy Solutions Group, Inc. 3.1%
National-OilWell Varco, Inc. 2.9%
Petro-Canada - ADR 2.9%
Diamond Offshore Drilling, Inc. 2.7%
Nabors Industries, Ltd. 2.7%
Transocean, Inc. 2.7%
Weatherford International, Ltd. 2.6%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Energy Fund appreciated 8.80% for the six-month period ended March
31, 2006, outpacing the 1.43% return for its sector-specific benchmark, the
S&P 1500 Energy Index, in addition to the 7.08% return of its broad
benchmark, the S&P 1500 Index. Total returns for other periods as of March
31, 2006 are listed on page 16.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. The Fund's significant tilt toward the oil & gas equipment & services and oil
& gas drilling industries proved to be the primary driver of outsized gains,
while underexposure to the integrated oil & gas area and a lack of exposure
to benchmark bellwether Exxon Mobil also aided returns.
From a market capitalization perspective, the Fund's stock selection within
the underexposed large-cap group boosted results, as did an overweighting in
mid-cap issues. Meanwhile, the Fund's limited exposure to the lagging
small-cap space helped to mitigate the drag on relative outperformance.
Although our process guides us to emphasize specific industries and
securities, it may result in concentration within a given capitalization
range.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Heavily overweighted positions in the oil & gas equipment & services and oil
& gas drilling industries combined with a significant underweight in
integrated oil & gas proved highly beneficial to Fund performance during the
period. Although the large-cap dominated integrated oil & gas industry
represents approximately 60% of the sector benchmark, we found it to be less
attractive from a valuation and relative strength standpoint. In contrast,
the Fund's exposure to oil & gas exploration & production along with a
relatively minimal weighting in oil & gas storage & transportation slowed
results.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE ENERGY SECTOR?
A. Looking ahead, we anticipate a continued upward trend, as energy stock prices
in general appear healthy relative to their intrinsic worth. However, because
of the strong stock price increase most issues have experienced over the past
three years, we expect volatility as investors take profits.
Based on the fundamentals that comprise our valuation model, we believe the
oil & gas drilling and coal & consumable fuels areas offer the best bargains,
and if current conditions persist, we expect to be heavily weighted in both.
Conversely, we currently view oil & gas refining & marketing as the lone
expensive industry, and thus continue to maintain an active underweighting.
Management Overview 13
Management Overview (continued)
ICON Energy Fund
[J.C. WALLER III, PORTFOLIO MANAGER PHOTO]
J.C. Waller, III
Portfolio Manager
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - A systematic approach to industry selection enabled the Fund to outperform
the S&P 1500 Energy Index.
- - Overweight positions in oil & gas equipment & services and oil & gas drilling
combined with a significant underweight in integrated oil & gas drove gains.
- - Although the integrated oil & gas industry represents approximately 60% of
the sector benchmark, we found it unattractive from a valuation standpoint.
14 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Oil & Gas Equipment & Services 29.7%
Oil & Gas Drilling 24.7%
Integrated Oil & Gas 21.8%
Oil & Gas Exploration & Production 17.0%
Coal & Consumable Fuels 3.8%
Oil & Gas Storage & Transportation 1.6%
Construction Materials 1.3%
</Table>
Percentages are based upon net assets.
Management Overview 15
Management Overview (continued)
ICON Energy Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTH* 1 YEAR 5 YEARS 11/5/97
- -------------------------------------------------------------------------------------------
ICON Energy Fund 8.80% 41.11% 22.07% 18.18%
- -------------------------------------------------------------------------------------------
S&P 1500 Energy Index 1.43% 23.90% 15.63% 11.28%
- -------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 6.08%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON ENERGY FUND S&P 1500 ENERGY INDEX S&P 1500 INDEX
---------------- --------------------- --------------
11/5/97 10000.00 10000.00 10000.00
9100.00 9432.00 10291.00
03/31/98 9330.00 9872.00 11683.00
8630.00 9603.00 11967.00
6350.00 8920.00 10680.00
5723.00 8937.00 13000.00
03/31/99 6726.00 9455.00 13472.00
8164.00 10671.00 14520.00
8083.00 10579.00 13597.00
8600.00 10702.00 15632.00
3/31/00 11092.00 11203.00 16115.00
11872.00 11539.00 15698.00
13361.00 12516.00 15692.00
15363.00 12651.00 14545.00
3/31/01 15010.00 11875.00 12849.00
14202.00 12096.00 13693.00
12488.00 10566.00 11654.00
14856.00 11245.00 12997.00
3/31/02 16385.00 12350.00 13121.00
14823.00 11769.00 11435.00
13117.00 9493.00 9460.00
14004.00 10190.00 10228.00
3/31/03 13539.00 10230.00 9886.00
14857.00 10988.00 11440.00
15178.00 11038.00 11796.00
18580.00 12737.00 13253.00
3/31/04 20154.00 13460.00 13536.00
21649.00 14547.00 13772.00
24165.00 16142.00 13514.00
25672.00 16862.00 14816.00
3/31/05 28840.00 19815.00 14521.00
29882.00 20283.00 14771.00
37406.00 24205.00 15332.00
36433.00 22554.00 15657.00
3/31/06 40700.00 24551.00 16416.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 11/5/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
16 Management Overview
Schedule of Investments
ICON Energy Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
COMMON STOCKS (99.9%)
75,000 Alpha Natural
Resources, Inc.(a) $ 1,735,500
84,700 Anadarko Petroleum
Corp. 8,555,547
100,000 Apache Corp. 6,551,000
215,000 Atwood Oceanics,
Inc.(a) 21,717,150
175,000 Berry Petroleum Co. 11,978,750
100,000 BG Group PLC - ADR 6,271,000
70,000 BP PLC - ADR 4,825,800
425,000 Chesapeake Energy
Corp. 13,349,250
225,000 Chevron Corp. 13,043,250
300,000 China Petroleum and
Chemical Corp. -
ADR 17,508,000
200,014 Cimarex Energy Co. 8,652,606
85,000 CNOOC, Ltd. - ADR 6,645,300
200,000 Comstock Resources,
Inc.(a) 5,938,000
140,000 ConocoPhillips 8,841,000
125,000 CONSOL Energy, Inc. 9,270,000
350,000 Cooper Cameron
Corp.(a) 15,428,000
300,000 Diamond Offshore
Drilling, Inc. 26,850,000
150,000 Dril-Quip, Inc.(a) 10,627,500
75,000 Edge Petroleum
Corp.(a) 1,873,500
350,000 El Paso Corp. 4,217,500
225,000 Energy Partners,
Ltd.(a) 5,305,500
250,000 ENSCO
International, Inc. 12,862,500
225,000 FMC Technologies,
Inc.(a) 11,524,500
300,000 Foundation Coal
Holdings, Inc. 12,342,000
75,000 GlobalSantaFe Corp. 4,556,250
800,000 Grant Prideco,
Inc.(a) 34,271,999
325,000 Headwaters, Inc.(a) 12,931,750
800,000 Helix Energy
Solutions Group,
Inc.(a) 30,320,000
300,000 Helmerich & Payne,
Inc. 20,946,000
125,000 Hornbeck Offshore
Services, Inc.(a) 4,508,750
</Table>
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
50,000 Hydril Co.(a) $ 3,897,500
575,000 KCS Energy, Inc.(a) 14,950,000
375,000 Lone Star
Technologies,
Inc.(a) 20,778,750
175,000 Lufkin Industries,
Inc. 9,702,000
100,000 Lukoil - ADR 8,290,000
287,050 Marathon Oil Corp. 21,864,599
100,000 Maverick Tube
Corp.(a) 5,299,000
375,000 Nabors Industries,
Ltd.(a) 26,842,500
450,000 National-OilWell
Varco, Inc.(a) 28,854,000
500,000 Newpark Resources,
Inc.(a) 4,100,000
180,000 Noble Corp. 14,598,000
475,000 Oil States
International,
Inc.(a) 17,503,750
850,000 Parker Drilling
Co.(a) 7,879,500
700,000 Patterson-UTI
Energy, Inc. 22,372,000
280,000 Peabody Energy
Corp. 14,114,800
125,000 Penn Virginia Corp. 8,875,000
600,000 Petro-Canada - ADR 28,554,000
220,000 Petrochina Co.,
Ltd. - ADR 23,089,000
550,000 Petroleo Brasileiro
S.A. - ADR 47,668,499
150,000 Precision Drilling
Corp. - ADR 4,851,000
450,000 Pride
International,
Inc.(a) 14,031,000
550,000 Range Resources
Corp. 15,020,500
100,000 Repsol YPF S.A. -
ADR 2,850,000
350,000 Rowan Cos., Inc. 15,386,000
260,000 Royal Dutch Shell -
Class A - ADR 16,187,600
250,000 Stolt Offshore
S.A. - ADR(a) 3,872,500
200,000 Suncor Energy,
Inc. - ADR 15,404,000
800,000 Superior Energy
Services, Inc.(a) 21,432,000
300,000 TETRA Technologies,
Inc.(a) 14,112,000
534,300 The Williams
Companies, Inc. 11,428,677
300,000 Tidewater, Inc. 16,569,000
</Table>
Schedule of Investments 17
Schedule of Investments (continued)
ICON Energy Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
325,000 Transocean, Inc.(a) $ 26,097,500
550,000 Ultra Petroleum
Corp.(a) 34,270,500
425,000 Unit Corp.(a) 23,693,750
175,000 W&T Offshore, Inc. 7,054,250
300,000 W-H Energy
Services, Inc.(a) 13,347,000
</Table>
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
549,298 Weatherford
International,
Ltd.(a) $ 25,130,384
400,033 XTO Energy, Inc. 17,429,438
------------
TOTAL INVESTMENT 99.9%
(COST $650,847,148) 980,847,899
OTHER ASSETS LESS LIABILITIES
0.1% 1,194,771
------------
TOTAL NET ASSETS 100.0% $982,042,670
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
ADR American Depositary Receipt
18 Schedule of Investments
Management Overview
ICON Financial Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 100.4%
Top 10 Equity Holdings 27.1%
Number of Stocks 58
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Cash America International, Inc. 3.3%
Credit Suisse
Group - ADR 3.0%
JPMorgan Chase & Co. 3.0%
First Cash Financial Services, Inc. 2.9%
China Life Insurance Co., Ltd. - ADR 2.6%
ING Group N.V. - ADR 2.6%
HCC Insurance Holdings, Inc. 2.5%
Washington Mutual, Inc. 2.5%
Mellon Financial Corp. 2.4%
Ameriprise Financial, Inc. 2.3%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Financial Fund gained 11.86% for the six-month period ended March
31, 2006, slightly underperforming the 11.98% return of its sector-specific
benchmark, the S&P 1500 Financials Index, while outperforming the 7.08%
return for its broad benchmark, the S&P 1500 Index. Total returns for other
periods as of March 31, 2005 appear on page 22.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. The Fund reflected overall improvement in the Financials sector, as banks,
asset managers and investment banking & brokerage led the broader market.
However, the portfolio slightly underperformed its narrow benchmark due to an
underweight in the strong performing thrifts & mortgage finance industry
relative to the benchmark. The Fund had no representation in this industry to
begin the period, though based on our analysis of valuation and leadership,
we subsequently established a significant weighting.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Industries that contributed most meaningfully to Fund performance included
the heavily overweighted investment banking & brokerage group and the
consumer finance area. Conversely, the Fund's underweighting and unfavorable
stock selection within the thrifts & mortgage finance group detracted
significantly from results. Reinsurance holdings also worked against overall
returns and were subsequently reduced on declining relative strength.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE FINANCIALS SECTOR?
A. While the Financials sector showed a fair amount of value toward the end of
the period, the extent of this value had diminished somewhat with the rise in
AAA bond yields. Accordingly, we expect to increase our selectivity.
Our analysis continues to identify opportunistic value within the insurance
and banking industries, including thrifts & mortgage finance, regional banks,
property & casualty insurance, and life & health insurance. On the other
hand, as valuations have climbed in the investment banking & brokerage,
specialized finance, real estate management & development, and real estate
investment trust areas, ownership positions will be carefully monitored for
signs of changing leadership as they approach or exceed fair value.
Management Overview 19
Management Overview (continued)
ICON Financial Fund
(DEREK ROLLINGSON PHOTO)
Derek Rollingson
Portfolio Manager
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - The Fund reflected overall improvement in the Financials sector, as banks,
asset managers and investment banking & brokerage areas led the broader
market.
- - A value-driven tilt toward investment banking & brokerage and consumer
finance proved advantageous to performance.
- - Underweighting and unfavorable stock selection within thrifts & mortgage
finance detracted from results.
20 Management Overview
TOP 10 INDUSTRIES
March 31, 2006
<Table>
Investment Banking & Brokerage 20.1%
Thrifts & Mortgage Insurance 11.6%
Consumer Finance 11.4%
Asset Management & Custody Banks 9.1%
Other Diversified Financial Services 7.8%
Multi-Line Insurance 7.7%
Life & Health Insurance 5.8%
Specialized Finance 5.7%
Diversified Banks 5.2%
Property & Casualty Insurance 3.4%
Regional Banks 3.2%
Diversified Capital Markets 3.0%
Real Estate Investment Trusts 3.0%
Retail REITS 2.0%
Real Estate Management & Development 1.4%
</Table>
Percentages are based upon net assets.
Management Overview 21
Management Overview (continued)
ICON Financial Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTH* 1 YEAR 5 YEARS 7/1/97
- -------------------------------------------------------------------------------------------
ICON Financial Fund 11.86% 17.27% 10.32% 11.29%
- -------------------------------------------------------------------------------------------
S&P 1500 Financials Index 11.98% 18.15% 7.67% 9.62%
- -------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 6.70%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON FINANCIAL FUND S&P 1500 FINANCIALS INDEX S&P 1500 INDEX
------------------- ------------------------- --------------
7/1/97 10000.00 10000.00 10000.00
10510.00 11141.00 10796.00
10526.00 12020.00 11056.00
3/31/98 12003.00 13426.00 12552.00
12294.00 13821.00 12857.00
9411.00 10941.00 11474.00
11267.00 13265.00 13967.00
3/31/99 11878.00 14190.00 14474.00
12442.00 14931.00 15600.00
10357.00 12642.00 14608.00
11074.00 13668.00 16795.00
3/31/00 11342.00 13923.00 17314.00
11366.00 13526.00 16865.00
14307.00 16727.00 16858.00
16613.00 17081.00 15626.00
3/31/01 15598.00 15435.00 13804.00
17694.00 16730.00 14711.00
15675.00 14787.00 12521.00
17047.00 15904.00 13963.00
3/31/02 17625.00 16526.00 14097.00
16375.00 15375.00 12285.00
13812.00 12812.00 10164.00
14014.00 13719.00 10988.00
3/31/03 13011.00 13027.00 10621.00
16193.00 15404.00 12291.00
16899.00 16097.00 12673.00
19659.00 18038.00 14238.00
3/31/04 21045.00 18958.00 14543.00
20714.00 18507.00 14796.00
21046.00 18637.00 14519.00
23264.00 20187.00 15917.00
3/31/05 21736.00 18903.00 15601.00
22127.00 19777.00 15869.00
22788.00 19945.00 16472.00
23834.00 21511.00 16821.00
3/31/06 25491.00 22334.00 17637.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 7/1/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
22 Management Overview
Schedule of Investments
ICON Financial Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
COMMON STOCKS (100.4%)
59,700 A.G. Edwards, Inc. $ 2,976,642
103,500 Accredited Home
Lenders Holding
Co.(a) 5,297,130
50,500 ACE, Ltd. 2,626,505
74,700 American
International
Group, Inc. 4,936,923
168,700 AmeriCredit
Corp.(a) 5,184,151
124,100 Ameriprise
Financial, Inc. 5,591,946
87,900 Boston Private
Financial Holdings,
Inc. 2,970,141
55,300 Capital One
Financial Corp. 4,452,756
264,300 Cash America
International, Inc. 7,934,286
123,900 China Life
Insurance Co.,
Ltd. - ADR(a) 6,325,095
91,500 CIT Group, Inc. 4,897,080
109,700 Citigroup, Inc. 5,182,228
130,400 Credit Suisse
Group - ADR 7,284,144
39,200 Downey Financial
Corp. 2,638,160
163,000 Eaton Vance Corp. 4,462,940
88,300 Fannie Mae 4,538,620
163,500 Financial Federal
Corp. 4,790,550
351,300 First Cash
Financial Services,
Inc.(a) 7,022,487
96,800 GFI Group, Inc.(a) 5,024,888
62,300 Golden West
Financial Corp. 4,230,170
174,650 HCC Insurance
Holdings, Inc. 6,077,820
155,800 ING Group N.V. -
ADR 6,138,520
55,800 Investment
Technology Group,
Inc.(a) 2,778,840
69,700 Investors Financial
Services Corp. 3,266,839
42,500 Jones Lang LaSalle,
Inc. 3,252,950
171,900 JPMorgan Chase &
Co. 7,157,916
120,600 Kimco Realty Corp. 4,901,184
38,100 Kookmin Bank - ADR 3,258,312
</Table>
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
170,700 Labranche and Co.,
Inc.(a) $ 2,698,767
32,800 Lehman Brothers
Holding, Inc. 4,740,584
52,500 Lincoln National
Corp. 2,865,975
48,800 Loews Corp. 4,938,560
162,300 Mellon Financial
Corp. 5,777,880
70,100 Merrill Lynch &
Co., Inc. 5,521,076
38,400 MGIC Investment
Corp. 2,558,592
79,300 Morgan Stanley 4,981,626
75,400 New Century
Financial Corp. 3,469,908
114,400 NovaStar Financial,
Inc. 3,825,536
152,494 optionsXpress
Holdings, Inc. 4,434,526
83,700 Philadelphia
Consolidated
Holding Corp.(a) 2,857,518
53,400 PMI Group, Inc. 2,452,128
87,000 Portfolio Recovery
Associates, Inc.(a) 4,074,210
36,400 Prudential
Financial, Inc. 2,759,484
101,700 Raymond James
Financial, Inc. 3,006,252
46,000 RLI Corp. 2,635,800
50,900 SLM Corp. 2,643,746
43,200 State Street Corp. 2,610,576
33,900 SunTrust Banks,
Inc. 2,466,564
24,500 The Bear Stearns
Cos., Inc. 3,398,150
27,700 The Goldman Sachs
Group, Inc. 4,347,792
29,800 The Hartford
Financial Services
Group, Inc. 2,400,390
325,000 TradeStation Group,
Inc.(a) 4,491,500
85,500 Umpqua Holdings
Corp. 2,436,750
105,100 UnumProvident Corp. 2,152,448
75,900 US Bancorp 2,314,950
91,800 Wachovia Corp. 5,145,390
</Table>
Schedule of Investments 23
Schedule of Investments (continued)
ICON Financial Fund
March 31, 2006
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
138,400 Washington Mutual,
Inc. $ 5,898,608
27,300 Wells Fargo & Co. 1,743,651
------------
TOTAL INVESTMENT 100.4% (COST
$206,702,212) 240,848,160
------------
LIABILITIES LESS OTHER ASSETS
(0.4)% (856,894)
------------
TOTAL NET ASSETS 100.0% $239,991,266
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
ADR American Depositary Receipt
24 Schedule of Investments
Management Overview
ICON Healthcare Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 93.7%
Top 10 Equity Holdings 24.2%
Number of Stocks 88
Short-Term Investments 6.0%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Celgene Corp. 3.4%
AmerisourceBergen Corp. 3.1%
McKesson HBOC, Inc. 2.7%
Barr Pharmaceuticals, Inc. 2.7%
Mylan Laboratories, Inc. 2.4%
Henry Schein, Inc. 2.3%
Cardinal Health, Inc. 2.2%
Eli Lilly & Co. 1.8%
Pfizer, Inc. 1.8%
DaVita, Inc. 1.8%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Healthcare Fund appreciated 5.63% for the six-month period ended
March 31, 2006, outperforming the 3.22% return for its sector-specific
benchmark, the S&P 1500 Healthcare Index, while underperforming the 7.08%
return for its broad benchmark, the S&P 1500 Index. Total returns for other
periods as of March 31, 2006 appear on page 28.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. A valuation-driven tilt toward healthcare distributors and healthcare
services coupled with favorable stock selection in the biotechnology space
accounted for the Fund's outperformance. Also assisting gains was the
decision to reduce exposure to the managed health care group as relative
strength began to wane. While the Fund remained relatively underweight in the
healthcare equipment industry, several names within the group detracted from
performance.
From a market capitalization perspective, the Fund revealed a very different
makeup than the S&P 1500 Healthcare Index, which is weighted overwhelmingly
toward large-cap stocks. The Fund was significantly underweight in this
segment.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Among the Fund's leading industry contributors during the period were
healthcare distributors and healthcare services, both of which displayed a
strong combination of value and relative strength. Additionally, stock
selection within the equally weighted biotechnology space also served to
boost relative performance.
By contrast, the Fund's positions in the healthcare equipment industry proved
detrimental as several holdings in this group witnessed declines.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE HEALTHCARE SECTOR?
A. While our analysis continues to show widespread value within the Healthcare
sector, no one industry stands out as a dominant leader. Our investment
approach seeks to capture market leadership along with attractive valuation.
At this time we will wait for signs of relative strength before capitalizing
on available valve opportunities.
Management Overview 25
Management Overview (continued)
ICON Healthcare Fund
[J.C. WALLER III PHOTO]
J.C. Waller, III
Portfolio Manager
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - A valuation-driven tilt toward healthcare distributors and healthcare
services coupled with favorable stock selection in the biotechnology space
aided performance.
- - The decision to reduce managed health care exposure on waning relative
strength aided results.
- - While relatively underweight in healthcare equipment, several of the Fund's
names within the group detracted from performance.
26 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Pharmaceuticals 24.2%
Health Care Services 13.8%
Health Care Distributors 12.4%
Biotechnology 10.9%
Managed Health Care 7.5%
Life Sciences Tools & Services 6.5%
Health Care Equipment 6.4%
Health Care Facilities 4.9%
Health Care Supplies 3.0%
Health Care Technology 2.8%
Specialized Consumer Services 0.7%
Drug Retail 0.6%
</Table>
Percentages are based upon net assets.
Management Overview 27
Management Overview (continued)
ICON Healthcare Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 5 YEARS 2/24/97
- -------------------------------------------------------------------------------------------
ICON Healthcare Fund 5.63% 15.27% 11.44% 13.72%
- -------------------------------------------------------------------------------------------
S&P 1500 Healthcare Index 3.22% 9.67% 2.44% 8.36%
- -------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 7.62%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
S&P 1500 HEALTH CARE
ICON HEALTHCARE FUND INDEX S&P 1500 INDEX
-------------------- -------------------- --------------
2/24/97 10000.00 10000.00 10000.00
9460.00 8940.00 9368.00
11080.00 11104.00 10981.00
11780.00 11169.00 11933.00
11644.00 11995.00 12221.00
3/31/98 13319.00 14014.00 13874.00
13813.00 14945.00 14211.00
12224.00 14703.00 12682.00
13427.00 16953.00 15438.00
3/31/99 13500.00 17464.00 15999.00
13863.00 16807.00 17243.00
11571.00 15192.00 16147.00
13938.00 15787.00 18564.00
3/31/00 15234.00 16050.00 19137.00
17042.00 19693.00 18642.00
17976.00 19880.00 18634.00
19936.00 21802.00 17272.00
3/31/01 18731.00 18405.00 15258.00
20498.00 18659.00 16261.00
18585.00 18850.00 13839.00
19303.00 19285.00 15434.00
3/31/02 19845.00 19189.00 15582.00
19524.00 16124.00 13580.00
17540.00 14975.00 11234.00
17523.00 15629.00 12146.00
3/31/03 17337.00 15824.00 11740.00
20236.00 17535.00 13585.00
20812.00 16927.00 14008.00
22981.00 18382.00 15738.00
3/31/04 23895.00 18439.00 16075.00
24777.00 18954.00 16354.00
23201.00 17940.00 16048.00
27102.00 18998.00 17594.00
3/31/05 27934.00 18932.00 17244.00
29598.00 19748.00 17540.00
30483.00 20115.00 18207.00
30871.00 20421.00 18593.00
3/31/06 32198.00 20762.00 19495.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 2/24/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
28 Management Overview
Schedule of Investments
ICON Healthcare Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
COMMON STOCKS (93.7%)
225,000 Adams
Respiratory
Therapeutics,
Inc.(a) $ 8,948,250
250,000 Aetna, Inc. 12,285,000
25,000 Alliance
Imaging,
Inc.(a) 161,000
200,000 Alpharma,
Inc. - Class A 5,364,000
500,000 AmerisourceBergen
Corp. 24,135,000
225,000 AMN Healthcare
Services,
Inc.(a) 4,212,000
160,000 Arrow
International,
Inc. 5,227,200
225,000 AstraZeneca
PLC - ADR 11,301,750
325,000 Barr
Pharmaceuticals,
Inc.(a) 20,468,500
125,000 Biogen Idec
Inc.(a) 5,887,500
275,000 Biovail Corp. 6,696,250
225,000 Bradley
Pharmaceuticals,
Inc.(a) 3,345,750
150,000 Cambrex Corp. 2,931,000
225,000 Cardinal
Health, Inc. 16,767,000
215,000 Caremark Rx,
Inc.(a) 10,573,700
600,000 Celgene
Corp.(a) 26,532,000
200,000 Cephalon,
Inc.(a) 12,050,000
200,000 Cerner Corp.(a) 9,490,000
50,000 CIGNA Corp. 6,531,000
250,000 Community
Health Systems,
Inc.(a) 9,037,500
150,000 Connetics
Corp.(a) 2,539,500
175,000 Coventry Health
Care, Inc.(a) 9,446,500
172,100 Cross Country
Healthcare,
Inc.(a) 3,331,856
150,000 CVS Corp. 4,480,500
300,000 Cytyc Corp.(a) 8,454,000
225,000 DaVita, Inc.(a) 13,547,250
35,000 Dentsply
International,
Inc. 2,035,250
300,000 Digene Corp.(a) 11,730,000
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
100,000 Dr. Reddy's
Laboratories,
Ltd. - ADR $ 3,140,000
81,500 Edwards
Lifesciences
Corp.(a) 3,545,250
250,000 Eli Lilly & Co. 13,825,000
300,000 Emdeon Corp.(a) 3,240,000
300,000 Encore Medical
Corp.(a) 1,536,000
100,000 Express
Scripts,
Inc.(a) 8,790,000
250,000 First Horizon
Pharmaceutical
Corp.(a) 6,302,500
175,000 Fisher
Scientific
International
Inc.(a) 11,908,750
225,000 Forest
Laboratories,
Inc.(a) 10,041,750
150,000 Gilead
Sciences,
Inc.(a) 9,333,000
150,000 Health Net,
Inc.(a) 7,623,000
225,000 HealthExtras,
Inc.(a) 7,942,500
208,500 Healthways,
Inc.(a) 10,620,990
375,000 Henry Schein,
Inc.(a) 17,947,500
172,500 Hi-Tech
Pharmacal Co.,
Inc.(a) 4,864,500
150,000 Humana, Inc.(a) 7,897,500
70,100 Icon
PLC - ADR(a) 3,427,189
200,000 Immucor,
Inc.(a) 5,738,000
75,000 Invitrogen
Corp(a) 5,259,750
125,000 Johnson &
Johnson, Inc. 7,402,500
325,000 K-V
Pharmaceutical
Co.(a) 7,839,000
500,000 King
Pharmaceuticals,
Inc.(a) 8,625,000
200,000 Laboratory
Corp. of
America
Holdings(a) 11,696,000
200,000 LifeCell
Corp.(a) 4,510,000
175,000 Lincare
Holdings,
Inc.(a) 6,818,000
280,000 Manor Care,
Inc. 12,418,000
</Table>
Schedule of Investments 29
Schedule of Investments (continued)
ICON Healthcare Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
200,000 Martek
Biosciences
Corp.(a) $ 6,566,000
144,500 Matthews
International
Corp. - Class A 5,528,570
400,000 McKesson HBOC,
Inc. 20,852,000
200,000 MedcoHealth
Solutions,
Inc.(a) 11,444,000
200,000 Molecular
Devices
Corp.(a) 6,632,000
775,000 Mylan
Laboratories,
Inc. 18,135,000
75,000 Omnicare, Inc. 4,124,250
200,000 Owens & Minor,
Inc. 6,554,000
50,000 Palomar Medical
Technologies,
Inc.(a) 1,672,500
250,000 Par
Pharmaceutical
Cos., Inc.(a) 7,045,000
100,000 Parexel
International
Corp.(a) 2,644,000
350,000 Per-Se
Technologies,
Inc.(a) 9,331,000
550,000 Pfizer, Inc. 13,706,000
325,600 Pharmaceutical
Product
Development,
Inc. 11,269,016
150,000 Possis Medical,
Inc.(a) 1,524,000
475,000 PSS World
Medical,
Inc.(a) 9,162,750
252,000 Psychiatric
Solutions,
Inc.(a) 8,348,760
125,000 Quest
Diagnostics,
Inc. 6,412,500
180,000 ResMed, Inc.(a) 7,916,400
200,000 Respironics,
Inc.(a) 7,782,000
200,000 Salix
Pharmaceuticals,
Ltd.(a) 3,302,000
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
60,000 Schick
Technologies,
Inc.(a) $ 2,994,000
150,000 SonoSite,
Inc.(a) 6,096,000
175,000 Stryker Corp. 7,759,500
225,000 Teva
Pharmaceutical
Industries,
Ltd. - ADR 9,265,500
175,000 Thermo Electron
Corp.(a) 6,490,750
212,800 United Surgical
Partners
International,
Inc.(a) 7,535,248
175,000 United
Therapeutics
Corp.(a) 11,599,000
75,024 UnitedHealth
Group, Inc. 4,190,841
200,000 Ventiv Health,
Inc.(a) 6,644,000
200,000 Watson
Pharmaceuticals,
Inc.(a) 5,748,000
140,072 Wellpoint,
Inc.(a) 10,845,775
150,000 West
Pharmaceutical
Services, Inc. 5,208,000
180,000 Wyeth 8,733,600
------------
TOTAL COMMON STOCKS
(COST $572,075,719) 722,862,895
SHORT-TERM INVESTMENTS (6.0%)
$46,417,777 Brown Brothers
Harriman Time
Deposit, 4.07%,
04/03/06# 46,417,777
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $46,417,777) 46,417,777
------------
TOTAL INVESTMENTS 99.7%
(COST $618,493,496) 769,280,672
------------
OTHER ASSETS LESS LIABILITIES
0.3% 2,031,304
------------
TOTAL NET ASSETS 100.0% $771,311,976
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
30 Schedule of Investments
Management Overview
ICON Industrials Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 99.2%
Top 10 Equity Holdings 20.0%
Number of Stocks 91
Short-Term Investments 0.5%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Wesco International, Inc. 2.5%
Burlington Northern Santa Fe Corp. 2.1%
Norfolk Southern Corp. 2.1%
Oshkosh Truck Corp. 2.0%
American Science and Engineering, Inc. 2.0%
FedEx Corp. 1.9%
Ceradyne, Inc. 1.9%
MSC Industrial Direct Co., Inc. - Class A 1.9%
Canadian National Railway Co. - ADR 1.8%
Fastenal Co. 1.8%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Industrials Fund advanced 20.34% for the six-month period ended
March 31, 2006, outperforming both the 14.01% return for its sector-specific
benchmark, the S&P 1500 Industrials Index, and the 7.08% return of its broad
benchmark, the S&P 1500 Index. Total returns for other periods as of March
31, 2006 appear on page 34.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. ICON's valuation-driven investment approach coupled with continued strong
economic fundamentals favoring cyclical stocks enabled the Fund to post
substantial upside gains. This atmosphere was conducive to the Industrials
sector, which tends to perform best during times of economic expansion.
Overall, the Fund's tilt toward economically sensitive groups such as
railroads, construction & farm machinery & heavy trucks, industrial
machinery, and trading companies & distributors drove its outsized gains,
while significantly underweight exposure to industrial conglomerates
insulated the Fund from these lagging benchmark bellwethers.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. With strong economic growth and increased demand bolstering fundamentals in
transportation-related industries, the broader construction group, industrial
machinery and trading companies & distributors, the Fund's overweighting in
these areas relative to the sector benchmark proved highly beneficial.
A standout among these groups was the construction & farm machinery & heavy
trucks space, where the Fund maintained an approximate 11% average weighting
and witnessed a gain of approximately 39% for the period. Moreover, the Fund
benefited from its lack of exposure to the industrial conglomerates area, a
group that returned approximately 4.5% for the period, less than a third of
the return delivered by the S&P 1500 Industrials Index.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE INDUSTRIALS SECTOR?
A. Due to strong overall performance and the recent rise in long-term bond
yields, we have seen general dissipation in the value of the Industrials
sector. Despite this, we continue to find what we believe are attractive
valuations in some of the broader industries, namely transportation-related
groups, industrial machinery, aerospace & defense, and building products.
Going forward, while some industries are growing expensive and thus dragging
down the overall value of the Industrials sector, we believe there are still
attractive opportunities in broader industries.
Management Overview 31
Management Overview (continued)
ICON Industrials Fund
[TODD BURCHETT PHOTO]
Todd Burchett
Portfolio Manager
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - The Fund benefited from a lack of exposure to bellwether industrial
conglomerates.
- - The construction & farm machinery & heavy trucks industry and trading
companies & distributors group contributing most significantly to results,
while minimal exposure to industrial conglomerates slowed performance.
32 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Industrial Machinery 18.3%
Aerospace & Defense 11.9%
Railroads 11.5%
Construction & Farm Machinery & Heavy Trucks 10.4%
Trading Companies & Distributors 9.0%
Air Freight & Logistics 7.9%
Trucking 6.4%
Building Products 4.6%
Airlines 4.0%
Human Resource & Employment Services 3.6%
Electrical Components & Equipment 3.4%
Diversified Commercial & Professional Services 2.4%
Trucking 1.8%
Construction & Engineering 1.5%
Marine 1.3%
Environmental & Facilities Services 0.6%
Office Services & Supplies 0.6%
</Table>
Percentages are based upon net assets.
Management Overview 33
Management Overview (continued)
ICON Industrials Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTHS* 1 YEAR 5 YEARS 5/9/97
- -------------------------------------------------------------------------------------------
ICON Industrials Fund 20.34% 28.86% 11.25% 6.99%
- -------------------------------------------------------------------------------------------
S&P 1500 Industrials Index 14.01% 14.71% 7.08% 7.60%
- -------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 7.56%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON INDUSTRIALS FUND S&P 1500 INDUSTRIALS INDEX S&P 1500 INDEX
--------------------- -------------------------- --------------
5/9/97 10000.00 10000.00 10000.00
10790.00 10956.00 10767.00
12400.00 11623.00 11700.00
11605.00 11509.00 11982.00
3/31/98 12995.00 12970.00 13604.00
11819.00 12459.00 13934.00
9662.00 10543.00 12435.00
12226.00 12465.00 15137.00
3/31/99 11503.00 12572.00 15687.00
13080.00 14186.00 16907.00
11295.00 13339.00 15832.00
11402.00 14537.00 18202.00
3/31/00 11068.00 14412.00 18764.00
10568.00 14190.00 18278.00
10805.00 15263.00 18271.00
11888.00 15228.00 16935.00
3/31/01 10706.00 13632.00 14961.00
12055.00 15157.00 15943.00
10205.00 12296.00 13569.00
12079.00 14343.00 15133.00
3/31/02 13164.00 14377.00 15278.00
12114.00 12531.00 13315.00
9500.00 10293.00 11015.00
9536.00 10852.00 11909.00
3/31/03 8462.00 10266.00 11511.00
9680.00 11879.00 13320.00
10504.00 12492.00 13735.00
12032.00 14340.00 15431.00
3/31/04 12127.00 14277.00 15761.00
12807.00 15482.00 16035.00
12556.00 15376.00 15735.00
14466.00 17028.00 17251.00
3/31/05 14155.00 16729.00 16908.00
14023.00 16279.00 17198.00
15158.00 16832.00 17852.00
15640.00 17672.00 18230.00
3/31/06 18241.00 19190.00 19115.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 5/9/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
34 Management Overview
Schedule of Investments
ICON Industrials Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
COMMON STOCKS (99.2%)
123,000 A.S.V., Inc.(a) $ 3,963,060
20,000 Actuant Corp. -
Class A 1,224,400
67,000 Alaska Air Group,
Inc.(a) 2,375,150
89,000 Albany
International
Corp. - Class A 3,390,010
23,900 Alliant
Techsystems,
Inc.(a) 1,844,363
55,500 American Science
and Engineering,
Inc.(a) 5,183,700
68,300 AMR Corp.(a) 1,847,515
84,500 Apogee
Enterprises, Inc. 1,426,360
51,700 Arkansas Best
Corp. 2,022,504
90,000 Barnes Group,
Inc. 3,645,000
60,000 Barrett Business
Services, Inc.(a) 1,620,000
55,000 Builders
FirstSource,
Inc.(a) 1,249,050
65,000 Burlington
Northern Santa Fe
Corp. 5,416,449
35,300 C.H. Robinson
Worldwide, Inc. 1,732,877
105,000 Canadian National
Railway Co. - ADR 4,754,400
57,000 Canadian Pacific
Railway, Ltd. -
ADR 2,848,290
58,000 Caterpillar, Inc. 4,164,980
63,900 Celadon Group,
Inc.(a) 1,398,771
100,000 Ceradyne, Inc.(a) 4,990,000
68,000 CSX Corp. 4,066,400
37,000 Cummins, Inc. 3,888,700
25,000 Curtiss-Wright
Corp. 1,655,000
65,000 Danaher Corp. 4,130,750
25,000 Dynamex, Inc.(a) 483,000
45,000 Eaton Corp. 3,283,650
53,000 ElkCorp 1,788,750
27,000 EMCOR Group,
Inc.(a) 1,340,820
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
86,700 Empresa
Brasileira de
Aeronautica
S.A. - ADR $ 3,194,895
100,000 Fastenal Co. 4,734,000
45,000 FedEx Corp. 5,082,300
54,400 Flanders Corp.(a) 635,392
51,300 Franklin Electric
Co., Inc. 2,803,545
125,000 FTI Consulting,
Inc.(a) 3,566,250
55,000 Gardner Denver,
Inc.(a) 3,586,000
44,400 General Cable
Corp.(a) 1,346,652
45,800 General Dynamics
Corp. 2,930,284
150,000 Genesee &
Wyoming, Inc.(a) 4,602,000
40,800 Granite
Construction,
Inc. 1,986,144
27,100 Harsco Corp. 2,239,002
61,700 Healthcare
Services Group,
Inc. 1,317,912
40,000 IDEX Corp. 2,086,800
60,000 Ingersoll Rand
Co. Ltd. - Class
A 2,507,400
7,000 Jacobs
Engineering
Group, Inc.(a) 607,180
69,400 Joy Global, Inc. 4,148,038
46,700 Kaydon Corp. 1,884,812
110,000 Kforce, Inc.(a) 1,402,500
51,000 Kirby Corp.(a) 3,473,610
218,550 Knight
Transportation,
Inc. 4,316,363
78,000 Labor Ready,
Inc.(a) 1,868,100
130,500 Lennox
International,
Inc. 3,896,730
86,000 Lincoln Electric
Holdings, Inc. 4,643,140
15,000 Lockheed Martin
Corp. 1,126,950
58,000 Manpower, Inc. 3,316,440
90,000 Marten Transport,
Ltd.(a) 1,628,100
60,000 Masco Corp. 1,949,400
155,100 Mesa Air Group,
Inc.(a) 1,774,344
</Table>
Schedule of Investments 35
Schedule of Investments (continued)
ICON Industrials Fund
March 31, 2006
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
26,500 Monster
Worldwide,
Inc.(a) $ 1,321,290
50,000 Moog, Inc. -
Class A(a) 1,774,500
90,000 MSC Industrial
Direct Co.,
Inc. - Class A 4,861,800
100,000 Norfolk Southern
Corp. 5,407,000
45,000 Northrop Grumman
Corp. 3,073,050
165,000 Old Dominion
Freight Line,
Inc.(a) 4,446,750
200,000 Orbital Sciences
Corp.(a) 3,164,000
84,000 Oshkosh Truck
Corp. 5,228,160
21,000 PACCAR, Inc. 1,480,080
134,700 Pacer
International,
Inc. 4,401,996
50,000 Parker Hannifin
Corp. 4,030,500
50,000 Regal-Beloit
Corp. 2,113,500
55,950 Rollins, Inc. 1,132,428
53,000 Roper Industries,
Inc. 2,577,390
105,400 Ryder System,
Inc. 4,719,812
60,000 SCS
Transportation,
Inc.(a) 1,746,600
150,000 SkyWest, Inc. 4,390,500
7,900 Stericycle,
Inc.(a) 534,198
16,400 Terex Corp.(a) 1,299,536
47,000 The Boeing Co. 3,662,710
48,000 The Middleby
Corp.(a) 4,018,560
62,000 The Toro Co. 2,960,500
40,000 Timken Co. 1,290,800
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
30,000 Union Pacific
Corp. $ 2,800,500
25,000 United Industrial
Corp. 1,523,250
57,700 United Parcel
Service, Inc. -
Class B 4,580,226
30,000 United
Stationers,
Inc.(a) 1,593,000
40,000 United
Technologies
Corp. 2,318,800
30,000 Universal Forest
Products, Inc. 1,904,700
42,100 USA Truck,
Inc.(a) 1,036,502
126,000 UTI Worldwide,
Inc. - ADR 3,981,600
50,000 W.W. Grainger,
Inc. 3,767,500
51,200 Watsco, Inc. 3,637,760
94,800 Wesco
International,
Inc.(a) 6,447,348
28,700 West Corp.(a) 1,281,742
------------
TOTAL COMMON STOCKS (COST
$194,203,052) 258,896,820
SHORT-TERM INVESTMENTS (0.5%)
$1,375,561 Brown Brothers
Harriman Time
Deposit, 4.07%,
04/03/06 # 1,375,561
------------
TOTAL SHORT-TERM INVESTMENT
(COST $1,375,561) 1,375,561
TOTAL INVESTMENTS 99.7% (COST
$195,578,613) 260,272,381
------------
OTHER ASSETS LESS LIABILITIES
0.3% 869,022
------------
TOTAL NET ASSETS 100.0% $261,141,403
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
36 Schedule of Investments
Management Overview
ICON Information Technology Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 100.2%
Top 10 Equity Holdings 23.9%
Number of Stocks 81
Short-Term Investments 0.0%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
International Business Machines Corp. 3.1%
Seagate Technology 2.6%
Komag, Inc. 2.6%
Google, Inc. - Class A 2.5%
Hutchinson Technology, Inc. 2.4%
Hewlett-Packard Co. 2.3%
Apple Computer, Inc. 2.3%
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR 2.1%
Nokia Corp. - ADR 2.0%
Satyam Computer Services, Ltd. - ADR 2.0%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Information Technology Fund appreciated 6.55% for the six-month
period ended March 31, 2006, trailing its narrow benchmarks, the S&P 1500
Information Technology Index and the NADSAQ Composite Index, which returned
6.76% and 9.28%, respectively, while also lagging its broad benchmark, the
S&P 1500 Index, which returned 7.08%. Total returns for other periods as of
March 31, 2006 appear on page 40.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. The Fund underperformed both its broad and narrow benchmarks during a period
best characterized by its lack of clear and sustained industry leadership - a
difficult setting given the Fund's thematic investment approach. Moreover, at
the beginning of the period, our system did not detect any significant
industry valuation discrepancies.
Overall, industry allocations yielded a positive impact on relative
performance versus the sector-specific benchmark. However, a handful of
large-cap names, specifically Cisco Systems, Qualcomm and Corning,
significantly outperformed the benchmark. According to our system, these
larger names were not as undervalued as some of their small- and mid-cap
counterparts. Consequently, their lower weights worked against Fund
performance.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Among industries that made measurable contributions to Fund results were IT
consulting & other services, electronic equipment manufacturers, computer
hardware, and computer storage & peripherals. In contrast, significant
detractors included systems software, application software, and
semiconductors.
Because our quantitative analysis did not detect a strong combination of
value and relative strength, the Fund did not take aggressively high
weightings in any of the 15 industries we track. However, the Fund's largest
average position during this period was in the positively performing
communications equipment area, which, due in part to our underweight exposure
to benchmark-heavy Cisco, underperformed on a relative basis. Conversely, the
Fund's active underweight in the negatively performing semiconductor space
served to benefit relative returns.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE INFORMATION TECHNOLOGY SECTOR?
A. Trading at a slight discount to our estimate of fair value, the Information
Technology sector was among the market's best performers at period-end.
Valuations, in our view, are thinning as prices have closed the gap on
Management Overview 37
Management Overview (continued)
ICON Information Technology Fund
[ROBERT STRAUS, CMT PHOTO]
Robert Straus, CMT
Portfolio Manager
intrinsic value. Nevertheless, our analysis indicates residual upside
potential in the sector, although greater selectivity will need to be
exercised going forward. Given strong interest in the overall market uptrend,
we believe the sector will participate in a continuation of the current
broad-based rally over the next six to twelve months.
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - A handful of large-cap names significantly outperformed the sector benchmark,
although the Fund's relative underweight in these issues worked against
performance.
- - Because our quantitative analysis did not detect a strong combination of
value and relative strength, the Fund did not take aggressively high industry
weightings.
- - IT consulting & other services, electronic equipment manufacturers, computer
hardware and computer storage & peripherals aided results, while systems
software, application software and semiconductors detracted from returns.
38 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Communications Equipment 12.7%
Computer Hardware 11.3%
Computer Storage & Peripherals 10.9%
Data Processing & Outsourced Services 10.9%
Semiconductors 10.4%
Electronic Equipment Manufacturers 8.7%
Application Software 7.0%
Technology Distributors 6.5%
Internet Software Services 6.3%
IT Consulting & Other Services 5.8%
Semiconductor Equipment 5.6%
Office Electronics 2.2%
Electronic Manufacturing Services 1.9%
</Table>
Percentages are based upon net assets.
Management Overview 39
Management Overview (continued)
ICON Information Technology Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTH* 1 YEAR 5 YEARS 2/19/97
- -------------------------------------------------------------------------------------------
ICON Information Technology Fund 6.55% 14.30% -1.07% 11.37%
- -------------------------------------------------------------------------------------------
S&P 1500 Information Technology Index 6.76% 15.22% 0.66% 5.73%
- -------------------------------------------------------------------------------------------
NASDAQ Composite index 9.28% 18.02% 5.48% 6.55%
- -------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 7.56%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON INFORMATION S&P 1500 INFORMATION NASDAQ COMPOSITE
TECHNOLOGY FUND TECHNOLOGY INDEX INDEX S&P 1500 INDEX
---------------- -------------------- ---------------- --------------
2/19/97 10000.00 10000.00 10000.00 10000.00
9210.00 9036.00 8949.00 9334.00
10850.00 10958.00 10580.00 10941.00
12961.00 12853.00 12379.00 11890.00
10432.00 11312.00 11546.00 12176.00
3/31/98 11524.00 13581.00 13511.00 13824.00
11088.00 14584.00 13960.00 14160.00
9569.00 14126.00 12492.00 12636.00
13975.00 19383.00 16188.00 15382.00
3/31/99 15490.00 21379.00 18185.00 15941.00
19901.00 24062.00 19862.00 17181.00
21008.00 25075.00 20319.00 16088.00
29493.00 34155.00 30129.00 18496.00
3/31/00 36190.00 38844.00 33868.00 19068.00
33516.00 35387.00 29387.00 18574.00
33456.00 30971.00 27224.00 18567.00
33646.00 21169.00 18322.00 17209.00
3/31/01 28149.00 16075.00 13657.00 15203.00
32236.00 18117.00 16051.00 16202.00
22449.00 12273.00 11140.00 13789.00
29269.00 16476.00 14507.00 15378.00
3/31/02 29699.00 15416.00 13738.00 15525.00
23079.00 11450.00 10903.00 13530.00
17208.00 8437.00 8742.00 11194.00
17151.00 10296.00 9972.00 12101.00
3/31/03 15568.00 10196.00 10030.00 11697.00
20892.00 12127.00 12147.00 13536.00
23798.00 13474.00 13388.00 13957.00
25210.00 15226.00 15035.00 15681.00
3/31/04 25411.00 14887.00 14982.00 16016.00
24059.00 15249.00 15402.00 16295.00
22736.00 13698.00 14287.00 15990.00
26190.00 15568.00 16411.00 17530.00
3/31/05 23340.00 14420.00 15106.00 17181.00
23831.00 14661.00 15570.00 17477.00
25039.00 15563.00 16314.00 18141.00
25154.00 15815.00 16760.00 18525.00
3/31/06 26678.00 16615.00 17829.00 19424.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 2/19/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
40 Management Overview
Schedule of Investments
ICON Information Technology Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
COMMON STOCKS (100.2%)
103,200 Affiliated
Computer Services,
Inc. - Class A(a) $ 6,156,912
90,000 Amphenol Corp. -
Class A 4,696,200
34,300 Analog Devices,
Inc. 1,313,347
80,800 Anixter
International,
Inc. 3,860,624
117,700 Apple Computer,
Inc.(a) 7,382,144
171,900 Arris Group,
Inc.(a) 2,365,344
133,900 Arrow Electronics,
Inc.(a) 4,320,953
98,000 ATI Technologies,
Inc. - ADR(a) 1,683,640
261,900 AU Optronics
Corp. - ADR 3,904,929
46,800 Avid Technology,
Inc.(a) 2,033,928
86,900 Avnet, Inc.(a) 2,205,522
63,300 Benchmark
Electronics,
Inc.(a) 2,427,555
93,700 Cabot
Microelectronics
Corp.(a) 3,476,270
248,500 Cadence Design
Systems, Inc.(a) 4,594,765
66,300 CANON, Inc. - ADR 4,379,115
211,500 Checkpoint
Systems, Inc.(a) 5,685,120
82,800 Cognizant
Technology
Solutions Corp.(a) 4,925,772
99,200 Computer Sciences
Corp.(a) 5,510,560
170,400 Convergys Corp.(a) 3,102,984
233,800 Corning, Inc.(a) 6,291,558
93,700 CSG Systems
International,
Inc.(a) 2,179,462
115,200 Diebold, Inc. 4,734,720
364,600 EFJ, Inc.(a) 3,934,034
216,100 EMC Corp.(a) 2,945,443
246,700 EPIQ Systems,
Inc.(a) 4,687,300
62,600 Euronet Worldwide,
Inc.(a) 2,368,158
39,500 Fair Issac Corp. 1,564,990
93,600 Fidelity National
Information
Services, Inc 3,795,480
100,100 First Data Corp. 4,686,682
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
121,200 Fiserv, Inc.(a) $ 5,157,060
135,800 Global Imaging
Systems, Inc.(a) 5,157,684
20,900 Google, Inc. -
Class A(a) 8,151,000
227,400 Hewlett-Packard
Co. 7,481,460
257,900 Hutchinson
Technology,
Inc.(a) 7,780,843
47,900 Infosys
Technologies,
Ltd. - ADR 3,729,494
276,300 Ingram Micro,
Inc.(a) 5,526,000
121,100 International
Business Machines
Corp. 9,987,117
156,400 Intevac Inc.(a) 4,501,192
100,500 j2 Global
Communications,
Inc.(a) 4,723,500
51,800 Jabil Circuit,
Inc.(a) 2,220,148
172,300 Komag, Inc.(a) 8,201,480
126,200 LG.Philips LCD
Co., Ltd. - ADR(a) 2,864,740
29,300 Marvell Technology
Group,
Ltd. - ADR(a) 1,585,130
34,200 Maximus, Inc. 1,230,516
89,600 MEMC Electronic
Materials, Inc.(a) 3,308,032
70,700 Mentor Graphics
Corp.(a) 781,235
89,800 Mettler-Toledo
International,
Inc.(a) 5,418,532
117,600 Microchip
Technology, Inc. 4,268,880
61,500 Nam Tai
Electronics, Inc. 1,408,965
75,500 National
Semiconductor
Corp. 2,101,920
105,900 NDS Group PLC -
ADR(a) 5,509,977
70,300 Neoware Systems,
Inc.(a) 2,082,286
121,900 NICE Systems,
Ltd. - ADR(a) 6,212,024
315,900 Nokia Corp. - ADR 6,545,448
190,700 Open Text Corp.(a) 3,133,201
152,400 PDF Solutions,
Inc.(a) 2,883,408
92,700 Plantronics, Inc. 3,284,361
94,200 PortalPlayer,
Inc.(a) 2,094,066
</Table>
Schedule of Investments 41
Schedule of Investments (continued)
ICON Information Technology Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
92,700 Qualcomm, Inc. $ 4,691,547
250,100 Radyne Corp.(a) 3,994,097
48,800 Rimage Corp.(a) 1,101,904
60,200 SanDisk Corp.(a) 3,462,704
149,400 Satyam Computer
Services,
Ltd. - ADR 6,537,744
315,700 Seagate Technology 8,312,381
964,000 Siliconware
Precision
Industries
Co. - ADR 6,217,800
46,400 SiRF Technology
Holdings, Inc.(a) 1,643,024
24,100 SPSS, Inc.(a) 763,006
88,000 Stratasys, Inc.(a) 2,594,240
663,800 Taiwan
Semiconductor
Manufacturing Co.,
Ltd. - ADR 6,677,828
64,350 TALX Corp. 1,832,688
161,400 Technitrol, Inc. 3,870,372
120,800 Tessera
Technology,
Inc.(a) 3,875,264
179,200 Texas Instruments,
Inc. 5,818,624
91,800 Transaction
Systems
Architects,
Inc.(a) 2,865,078
51,900 Verint Systems,
Inc.(a) 1,835,703
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
124,700 ViaSat, Inc.(a) $ 3,572,655
86,000 Vishay
Intertechnology,
Inc.(a) 1,224,640
125,500 WebEx
Communications,
Inc.(a) 4,225,585
146,500 Western Digital
Corp.(a) 2,846,495
153,200 Wipro, Ltd. - ADR 2,278,084
177,400 Xerox Corp.(a) 2,696,480
------------
TOTAL COMMON STOCKS (COST
$271,844,335) 321,481,153
SHORT-TERM INVESTMENTS (0.0%)
$170,171 Brown Brothers
Harriman Time
Deposit, 4.07%,
04/03/06# 170,171
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $170,171) 170,171
------------
TOTAL INVESTMENTS (COST
$272,014,506) 100.2% 321,651,324
------------
LIABILITIES LESS OTHER ASSETS
(0.2)% (767,166)
------------
TOTAL NET ASSETS 100.0% $320,884,158
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
42 Schedule of Investments
Management Overview
ICON Leisure and Consumer Staples Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 101.0%
Top 10 Equity Holdings 27.3%
Number of Stocks 64
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Century Casinos, Inc. 3.2%
Ruby Tuesday, Inc. 2.9%
Life Time Fitness, Inc. 2.9%
Darden Restaurants, Inc. 2.8%
Panera Bread Co. - Class A 2.8%
Eastman Kodak Co. 2.8%
Penn National Gaming, Inc. 2.7%
Marriott International, Inc. - Class A 2.5%
Corn Products International, Inc. 2.4%
SCP Pool Corp. 2.3%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Leisure and Consumer Staples Fund returned 3.04% for the six-month
period ended March 31, 2006, trailing the 5.29% return for the S&P 1500
Consumer Discretionary Index, while outpacing the 2.18% return of the S&P
1500 Consumer Staples Index. Although neither sector-specific benchmark is an
ideal comparison individually, we believe together they provide a suitable
reference for the Fund's overall performance. Additionally, the Fund fell
short of its broad benchmark, the S&P 1500 Index, which returned 7.08% over
the same period. Total returns for other periods as of March 31, 2006 appear
on page 46.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. The Fund's valuation-driven tilt toward Leisure-related issues versus those
in the defensive Consumer Staples area enabled it to outperform the S&P 1500
Consumer Staples Index for the period. However, with approximately one-third
of the portfolio positioned in generally lagging Consumer Staples industries,
performance trailed the S&P 1500 Consumer Discretionary Index. The poor
showing in Consumer Staples was magnified by particularly sharp declines
experienced in the packaged foods & meats and food distributors
industries - the latter of which was ultimately removed from the portfolio on
weakening relative strength. Generally speaking, disappointing performance in
both sector-specific benchmarks made it difficult for the Fund to keep pace
with the broad S&P 1500 Index.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Contributing significantly to results was the Fund's heavily overweight
position in the restaurant industry, an area that comprised nearly a quarter
of the portfolio by period-end. The restaurant industry added 3.48% to
overall performance. Also displaying attractive value and leadership were
casinos & gaming, which had no representation at the beginning of the period,
and leisure products. Weightings in both groups were respectively boosted to
approximately 7% and 13.8%, respectively, of net assets by period-end.
In contrast, Fund results suffered from exposure to the packaged foods and
meats and food distributors industry, a previous leader that was
systematically sold on declining relative strength, and food retail, which
experienced overpricing among certain stocks. Positioning in the group was
ultimately pared back from approximately 13.3% to 3% of net assets by
period-end.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE LEISURE AND CONSUMER STAPLES SECTOR?
A. Looking ahead, sector valuations appear generally in line with the overall
market. Our system is identifying incremental value in areas with less
Management Overview 43
Management Overview (continued)
ICON Leisure and Consumer Staples Fund
[DEREK ROLLINGSON PHOTO]
Derek Rollingson
Portfolio Manager
relative strength such as personal products, publishing and broadcast & cable
TV. We intend to watch these areas for signs of relative strength. Given
attractive V/P metrics and recent leadership in the leisure products
industry, we believe this area is well positioned for future growth. In
contrast, we will carefully monitor our holdings within casinos & gaming, as
this group has become expensive by our estimation.
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - The Fund's valuation-driven tilt toward Leisure-related cyclical issues
enabled it to outperform the S&P 1500 Consumer Staples Index.
- - Primary industry contributors to Fund performance included restaurants,
casinos & gaming and leisure products.
- - Results suffered from exposure to the previously leading food distributors
group as well as food retail and packaged foods and meats.
44 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Restaurants 24.7%
Leisure Products 13.7%
Casinos & Gaming 7.1%
Hotels, Resorts & Cruise Lines 6.9%
Publishing 6.3%
Agriculture Products 4.6%
Hypermarkets & Super Centers 4.2%
Apparel Retail 3.4%
Food Retail 3.0%
Leisure Facilities 2.9%
Photographic Products 2.8%
Soft Drinks 2.4%
Household Products 2.3%
Movies & Entertainment 2.1%
Packaged Foods & Meats 2.1%
Automobile Manufacturers 1.8%
Catalog Retail 1.8%
Computer & Electronics Retail 1.8%
Distillers & Vintners 1.8%
Airlines 1.7%
Footwear 1.7%
Tobacco 1.0%
Personal Products 0.9%
</Table>
Percentages are based upon net assets.
Management Overview 45
Management Overview (continued)
ICON Leisure and Consumer Staples Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTH* 1 YEAR 5 YEARS 5/9/97
- -------------------------------------------------------------------------------------------
ICON Leisure and Consumer Staples Fund 3.04% -4.98% 10.11% 10.52%
- -------------------------------------------------------------------------------------------
S&P 1500 Consumer Discretionary Index 5.29% 3.36% 4.84% 7.51%
- -------------------------------------------------------------------------------------------
S&P 1500 Consumer Staples Index 2.18% 4.91% 4.40% 5.39%
- -------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 7.56%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The performance of the
S&P 1500 Consumer Discretionary Index includes the reinvestment of dividends and
capital gain distributions beginning on January 1, 2002. Additional information
about these performance results and the comparative indexes can be found on
pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON LEISURE AND
CONSUMER STAPLES S&P 1500 CONSUMER S&P 1500 CONSUMER
FUND DISCRETIONARY INDEX STAPLES INDEX S&P 1500 INDEX
---------------- ------------------- ----------------- --------------
5/9/97 10000.00 10000.00 10000.00 10000.00
10440.00 10706.00 10532.00 10769.00
11350.00 11749.00 10622.00 11703.00
11555.00 12154.00 11706.00 11985.00
3/31/98 12688.00 14320.00 12925.00 13606.00
12347.00 15454.00 13400.00 13937.00
11826.00 12705.00 11479.00 12437.00
13616.00 16298.00 14093.00 15140.00
3/31/99 14416.00 17659.00 13631.00 15689.00
15440.00 18587.00 13776.00 16910.00
13571.00 16840.00 12269.00 15835.00
13002.00 19631.00 13169.00 18205.00
3/31/00 12647.00 19006.00 12188.00 18768.00
13559.00 17347.00 12880.00 18282.00
14286.00 16547.00 12860.00 18274.00
14871.00 15912.00 13891.00 16938.00
3/31/01 15042.00 15034.00 12860.00 14963.00
17058.00 16612.00 13581.00 15946.00
14609.00 12992.00 12273.00 13572.00
18594.00 15605.00 12863.00 15136.00
3/31/02 21074.00 16136.00 14032.00 15281.00
20035.00 14409.00 13625.00 13317.00
17369.00 11935.00 12199.00 11017.00
16795.00 12210.00 12350.00 11911.00
3/31/03 16129.00 11940.00 11560.00 11513.00
18595.00 14322.00 12639.00 13323.00
19262.00 14736.00 12824.00 13737.00
21387.00 16872.00 13864.00 15434.00
3/31/04 22999.00 17298.00 14683.00 15764.00
23512.00 17161.00 14784.00 16038.00
22504.00 16962.00 13930.00 15738.00
25211.00 19303.00 15074.00 17254.00
3/31/05 25627.00 18422.00 15205.00 16911.00
24876.00 18454.00 15159.00 17202.00
23632.00 18085.00 15611.00 17855.00
22656.00 18379.00 15666.00 18234.00
3/31/06 24351.00 19041.00 15951.00 19118.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 5/9/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
46 Management Overview
Schedule of Investments
ICON Leisure and Consumer Staples Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
COMMON STOCKS (101.0%)
17,400 ADVO, Inc. $ 556,800
15,300 Aeropostale, Inc.(a) 461,448
5,400 Altria Group, Inc. 382,644
24,700 AMR Corp.(a) 668,135
10,000 BJ's Wholesale Club,
Inc.(a) 315,100
6,900 Brown Shoe Co., Inc. 362,112
14,300 Brunswick Corp. 555,698
8,700 Buffalo Wild Wings,
Inc.(a) 361,746
17,200 Casey's General
Stores, Inc. 393,364
9,800 Central Garden & Pet
Co.(a) 520,772
120,900 Century Casinos,
Inc.(a) 1,286,376
17,800 Christopher & Banks
Corp. 413,138
25,250 Coldwater Creek,
Inc.(a) 701,950
11,700 Companhia Brasileira
de Distribuicao
Grupo Pao de
Acucar - ADR 493,155
28,100 Constellation
Brands, Inc.(a) 703,905
32,600 Corn Products
International, Inc. 963,982
9,000 Costco Wholesale
Corp. 487,440
6,200 Ctrip.com
International,
Ltd. - ADR 512,740
27,300 Darden Restaurants,
Inc. 1,120,119
27,500 Delta & Pine Land
Co. 829,400
9,900 Dow Jones & Co.,
Inc. 389,070
38,800 Eastman Kodak Co. 1,103,472
4,800 Fomento Economico
Mexicano, S.A. de
C.V. - ADR 439,968
15,200 GameStop Corp. -
Class A(a) 716,528
25,500 Gruma S.A. - ADR 295,800
4,100 Hansen Natural
Corp.(a) 516,805
5,500 Harrah's
Entertainment, Inc. 428,780
33,300 Hilton Hotels Corp. 847,818
13,200 IHOP Corp. 632,808
</Table>
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
16,400 J & J Snack Foods
Corp. $ 550,876
20,300 Jack In the Box,
Inc.(a) 883,050
25,900 JAKKS Pacific,
Inc.(a) 692,566
40,900 K2, Inc.(a) 513,295
24,200 Life Time Fitness,
Inc.(a) 1,133,770
25,100 MarineMax, Inc.(a) 841,352
14,400 Marriott
International,
Inc. - Class A 987,840
22,400 Mattel, Inc. 406,112
22,800 McDonald's Corp. 783,408
5,500 McGraw-Hill Cos.,
Inc. 316,910
9,000 Meredith Corp. 502,110
16,400 Morningstar, Inc.(a) 734,228
26,100 O'Charley's, Inc.(a) 481,806
12,500 OSI Restaurant
Partners, Inc. 550,000
14,700 Panera Bread Co. -
Class A(a) 1,105,146
11,600 Papa John's
International,
Inc.(a) 380,596
11,700 Parlux Fragrances,
Inc.(a) 377,325
25,900 Penn National
Gaming, Inc.(a) 1,092,462
11,700 Polaris Industries,
Inc. 638,352
13,200 Rare Hospitality
International,
Inc.(a) 459,756
11,400 RC2 Corp.(a) 453,834
9,200 Royal Caribbean
Cruises, Ltd. 386,584
36,400 Ruby Tuesday, Inc. 1,167,712
39,600 Ryan's Restaurant
Group, Inc.(a) 574,200
19,300 SCP Pool Corp. 905,363
18,700 Spectrum Brands,
Inc.(a) 406,164
20,100 Starbucks Corp.(a) 756,564
14,700 Steinway Musical
Instruments, Inc.(a) 473,634
15,000 The Cheesecake
Factory, Inc.(a) 561,750
18,300 The Gymboree
Corp.(a) 476,532
8,900 The Timberland Co. -
Class A(a) 304,647
30,300 The Walt Disney Co. 845,067
13,500 Thor Industries,
Inc. 720,360
</Table>
Schedule of Investments 47
Schedule of Investments (continued)
ICON Leisure and Consumer Staples Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES VALUE
- --------------------------------------------
8,500 Wal-Mart Stores,
Inc. $ 401,540
18,000 Weis Markets, Inc. 802,260
-----------
TOTAL INVESTMENTS 101.0% (COST
$35,180,853) 40,128,244
LIABILITIES LESS OTHER ASSETS
(1.0)% (391,039)
-----------
TOTAL NET ASSETS 100.0% $39,737,205
===========
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
ADR American Depositary Receipt
48 Schedule of Investments
Management Overview
ICON Materials Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 97.9%
Top 10 Equity Holdings 34.5%
Number of Stocks 52
Short-Term Investments 2.5%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Alcoa, Inc. 5.2%
Eagle Materials, Inc. 3.9%
Steel Dynamics, Inc. 3.9%
Southern Copper Corp. 3.5%
Rio Tinto PLC - ADR 3.2%
Myers Industries, Inc. 3.1%
CRH PLC - ADR 3.0%
Aleris International, Inc. 3.0%
BHP Billiton, Ltd. - ADR 2.9%
Martin Marietta Materials, Inc. 2.8%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Materials Fund gained 20.60% for the six-month period ended March
31, 2006, outpacing the 19.01% return for its sector-specific benchmark, the
S&P 1500 Materials Index, as well as the 7.08% return of its broad benchmark,
the S&P 1500 Index. Total returns for other periods as of March 31, 2006
appear on page 52.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. A methodical approach to industry selection combined with strong global
demand for raw materials enabled the Fund to deliver significant upside
gains. Based on our analysis of valuation and relative strength, the
portfolio was able to outpace the S&P 1500 Materials Index through a
significant tilt toward leading areas such as diversified metals & mining,
steel and aluminum.
A substantial position in foreign companies via American Depository Receipts
(ADRs) - especially within in the metals and mining industries - also
contributed positively to benchmark-beating results. Moreover, the Fund was
able to sidestep losses incurred by the benchmark within the commodity
chemicals group.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Overweight positions in the diversified metals & mining, steel and aluminum
industries versus the sector benchmark proved beneficial to Fund performance.
The Fund increased its weighting in these sectors with significant exposure
to ADRs. Conversely, while the benchmark suffered significant losses in the
commodity chemicals group, the Fund was able to avoid much of the damage
based on valuation analysis of major names that proved relatively
unattractive.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE MATERIALS SECTOR?
A. At period-end, the Materials sector continued to demonstrate significant
relative strength. However, the spread between market price and fair value
had diminished considerably, indicating that stocks were beginning to show
signs of price maturity. Given this decline in V/P metrics, we anticipate
exercising greater selectivity going forward.
Nevertheless, our analysis continues to detect sustainable strength and value
in the aluminum, gold and metal & glass containers industries, leading us to
maintain or possibly increase current weightings in these groups. We also see
extensive value in commodity chemicals, but little in the way of relative
strength. In contrast, steel and construction materials appear overpriced
after
Management Overview 49
Management Overview (continued)
ICON Materials Fund
[DEREK ROLLINGSON PHOTO]
Derek Rollingson
Portfolio Manager
a nice run. Thus, we will continue to monitor these areas carefully for signs
of changing leadership.
PERFORMANCE HIGHLIGHTS
March 31, 2006
- - A methodical approach to industry selection combined with strong global
demand for raw materials enabled the Fund to deliver significant upside
gains.
- - A value-based tilt toward diversified metals & mining, steel and aluminum
proved beneficial to performance, as did significant exposure to ADRs.
- - While the benchmark suffered significant losses in the commodity chemicals
group, ICON's valuation analysis enable the Fund to avoid much of the damage.
50 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Steel 15.8%
Aluminum 12.8%
Construction Materials 11.4%
Specialty Chemicals 11.0%
Diversified Metals & Mining 9.5%
Metal & Glass Containers 9.3%
Diversified Chemicals 5.7%
Commodity Chemicals 5.6%
Railroads 4.8%
Paper Packaging 4.1%
Construction & Farm Machinery & Heavy Trucks 3.0%
Gold 1.8%
Fertilizers & Agricultural Chemicals 1.3%
Coal & Consumable Fuels 1.2%
Industrial Gases 0.6%
</Table>
Percentages are based upon net assets.
Management Overview 51
Management Overview (continued)
ICON Materials Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTH* 1 YEAR 5 YEARS 5/5/97
- -------------------------------------------------------------------------------------------
ICON Materials Fund 20.60% 32.83% 19.12% 4.29%
- -------------------------------------------------------------------------------------------
S&P 1500 Materials Index 19.01% 11.97% 13.06% 7.19%
- -------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 7.48%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON MATERIALS FUND S&P 1500 MATERIALS INDEX S&P 1500 INDEX
------------------- ------------------------ --------------
5/5/97 10000.00 10000.00 10000.00
9730.00 10749.00 10707.00
10900.00 11391.00 11635.00
7606.00 10466.00 11916.00
3/31/98 8632.00 11582.00 13528.00
7586.00 11142.00 13857.00
6819.00 9413.00 12366.00
6800.00 9795.00 15053.00
3/31/99 6571.00 9728.00 15599.00
8060.00 11660.00 16813.00
7612.00 10685.00 15743.00
8372.00 11807.00 18100.00
3/31/00 7352.00 10523.00 18660.00
7092.00 9136.00 18176.00
6758.00 8547.00 18169.00
6400.00 10572.00 16841.00
3/31/01 6063.00 10046.00 14877.00
6643.00 11050.00 15855.00
6011.00 9755.00 13494.00
7062.00 11031.00 15048.00
3/31/02 8036.00 12210.00 15193.00
7814.00 11922.00 13241.00
6013.00 9201.00 10954.00
6184.00 10214.00 11842.00
3/31/03 5675.00 9429.00 11447.00
6322.00 10707.00 13246.00
6576.00 11335.00 13658.00
8449.00 13972.00 15345.00
3/31/04 8555.00 13824.00 15673.00
9098.00 14315.00 15946.00
9642.00 14914.00 15648.00
10914.00 16307.00 17155.00
3/31/05 10946.00 16578.00 16813.00
10593.00 15154.00 17103.00
12055.00 15598.00 17752.00
12472.00 17045.00 18129.00
3/31/06 14539.00 18563.00 19008.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 5/5/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
52 Management Overview
Schedule of Investments
ICON Materials Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
COMMON STOCKS 97.9%
265,700 AK Steel
Holding
Corp.(a) $ 3,985,500
51,500 Albemarle Corp. 2,335,525
87,700 Alcan, Inc. -
ADR 4,010,521
280,800 Alcoa, Inc. 8,581,247
104,400 Aleris
International,
Inc.(a) 5,018,508
36,100 Aluminum Corp.
of China,
Ltd. - ADR 3,780,392
26,900 Anglogold
Ashanti, Ltd. -
ADR 1,455,828
49,100 AptarGroup,
Inc. 2,712,775
53,500 Ashland, Inc. 3,802,780
87,300 Ball Corp. 3,826,359
87,000 Bemis Co., Inc. 2,747,460
121,070 BHP Billiton,
Ltd. - ADR 4,824,640
21,100 Burlington
Northern Santa
Fe Corp. 1,758,263
47,400 Cabot Corp. 1,611,126
26,900 Carpenter
Technology
Corp. 2,542,588
15,700 Caterpillar,
Inc. 1,127,417
45,976 Cemex S.A. De
C.V. - ADR 3,001,313
94,100 Companhia Vale
do Rio Doce -
ADR 4,566,673
142,500 CRH PLC - ADR 5,058,750
27,100 CSX Corp. 1,620,580
21,200 Cummins, Inc. 2,228,120
53,000 Cytec
Industries,
Inc. 3,180,530
102,600 Eagle
Materials, Inc. 6,541,776
140,700 Ferro Corp. 2,814,000
58,950 Genesee &
Wyoming,
Inc.(a) 1,808,586
111,000 Georgia Gulf
Corp. 2,884,890
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
152,900 Gibraltar
Industries,
Inc. $ 4,504,434
69,500 Gold Fields,
Ltd. - ADR 1,527,610
136,800 Hercules,
Inc.(a) 1,887,840
26,850 Joy Global,
Inc. 1,604,825
43,000 Lubrizol Corp. 1,842,550
25,300 MacDermid, Inc. 813,395
42,900 Martin Marietta
Materials, Inc. 4,591,587
141,300 Methanex Corp. 2,900,889
323,000 Myers
Industries,
Inc. 5,164,770
48,900 Norfolk
Southern Corp. 2,644,023
176,400 OM Group,
Inc.(a) 4,057,200
153,600 Pactiv Corp.(a) 3,769,344
40,000 Peabody Energy
Corp. 2,016,400
31,100 Posco - ADR 1,984,180
34,100 PPG Industries,
Inc. 2,160,235
18,600 Praxair, Inc. 1,025,790
13,000 Quaker Chemical
Corp. 282,750
25,400 Rio Tinto PLC -
ADR 5,257,800
84,300 Ryerson, Inc. 2,255,868
48,100 Sealed Air
Corp. 2,783,547
32,800 Sonoco Products
Co. 1,110,936
69,600 Southern Copper
Corp. 5,879,808
152,000 Spartech Corp. 3,648,000
113,100 Steel Dynamics,
Inc. 6,416,163
48,100 The Scotts
Miracle-Gro Co. 2,201,056
105,700 The Valspar
Corp. 2,945,859
------------
TOTAL COMMON STOCKS (COST
$130,865,839) 163,103,006
</Table>
Schedule of Investments 53
Schedule of Investments (continued)
ICON Materials Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- --------------------------------------------
SHORT-TERM INVESTMENTS 2.5%
$ 4,144,998 Brown Brothers
Harriman Time
Deposit, 4.07%,
04/03/06# $ 4,144,998
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $4,144,998) 4,144,998
------------
TOTAL INVESTMENTS 100.4% (COST
$135,010,837) 167,248,004
------------
LIABILITIES LESS OTHER ASSETS
(0.4)% (692,990)
------------
TOTAL NET ASSETS 100.0% $166,555,014
============
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
54 Schedule of Investments
Management Overview
ICON Telecommunication & Utilities Fund
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE
March 31, 2006
Equities 99.4%
Top 10 Equity Holdings 40.9%
Number of Stocks 66
Short-Term Investments 3.6%
Percentages are based upon net assets.
TOP 10 EQUITY HOLDINGS
March 31, 2006
Verizon Communications, Inc. 5.3%
BellSouth Corp. 4.8%
AT&T, Inc. 4.8%
PT Telekomunikasi
Indonesia - ADR 4.6%
America Movil S.A.
De C.V. - ADR 4.5%
Telefonos De Mexico S.A. De C.V. - ADR 3.7%
Telecomunicacoes de Sao Paulo S.A. - ADR 3.6%
Korea Electric Power
Corp. - ADR 3.3%
Telekom Austria AG - ADR 3.3%
KT Corp. - ADR 3.0%
Percentages are based upon net assets.
- --------------------------------------------------------------------------------
Q. HOW DID THE FUND PERFORM RELATIVE TO ITS BENCHMARKS?
A. The ICON Telecommunication & Utilities Fund appreciated 3.06% for the
six-month period ended March 31, 2006, underperforming the 14.07% return for
S&P 1500 Telecommunication Services Index, while outperforming the -6.12%
return for the S&P 1500 Utilities Index. Although neither sector-specific
benchmark is an ideal comparison individually, we believe together they
provide a suitable reference for the Fund's overall performance.
Additionally, the Fund underperformed its broad benchmark, the S&P 1500
Index, which returned 7.08% over the same period. Total returns for other
periods as of March 31, 2006 appear on page 58.
Q. WHAT PRIMARY FACTORS WERE BEHIND THE FUND'S RELATIVE PERFORMANCE?
A. Generally speaking, the Fund's valuation-based tilt toward Telecommunication
Services issues versus those in the Utilities area accounted for its positive
performance. For the period, the average exposure to the Telecommunication
Services sector was approximately 42%, not including additional weighting in
telecom- and wireless-related companies technically falling outside the
confines of the S&P 1500 Telecommunication Services Index. The average
exposure to Utilities was approximately 43%, with an additional .93% in
utility-related companies outside the S&P 1500 Utilities Index.
These weightings represented a significant reversal in the Fund's makeup
compared to the prior fiscal year, a period in which average exposure to
Utilities was more than approximately two-thirds of the portfolio. This shift
was the result of ICON's value-driven, active investment style, and proved
beneficial to overall performance.
Q. HOW DID THE PORTFOLIO'S COMPOSITION AFFECT FUND PERFORMANCE?
A. Given the outperformance of Telecommunication Services industries versus
Utilities industries during the period, the Fund's tilt toward wireless
telecommunication services, integrated telecommunication services and
telecom-related companies proved advantageous. This overweighting was based
primarily on favorable valuation and relative strength measures, but was also
impacted by the number of available liquid companies within each industry.
Leading industry gains were recorded by the Fund's wireless telecommunication
services holdings, which returned approximately 16.3% versus a 6.5% return
for the S&P 1500 Wireless Telecommunication Services Index. This
outperformance was due mainly to the Fund's exposure to emerging market
wireless companies, whose value and relative strength were more compelling
than their U.S. counterparts.
Management Overview 55
Management Overview (continued)
ICON Telecommunication & Utilities Fund
[TODD BURCHETT PHOTO]
Todd Burchett
Portfolio Manager
Turning to Utilities, although the Fund maintained limited exposure to gas
utilities and independent power producers & energy traders, both proved to be
meaningful detractors on the basis of significant industrywide declines.
Multi-utilities, an area where the Fund had substantially greater exposure,
also hindered results.
Q. WHAT IS YOUR INVESTMENT OUTLOOK FOR THE TELECOMMUNICATION & UTILITIES SECTOR?
A. Looking ahead, we expect to decrease the Fund's exposure to Utilities while
increasing its weighting in the Telecommunication Services sector. While
finding value and relative strength in some of the well-known, domestic
telecommunication stocks, their relative attractiveness pales in comparison
to the American Depository Receipts (ADRs) of international peers,
particularly in the integrated telecommunications services area. Thus, the
Fund expects to have a high relative weighting in U.S. securities.
As for Utilities, our system is showing two bright spots: the water utilities
and independent power producers & energy traders groups. The same
domestic-international dichotomy exists in this space, and given compelling
growth prospects, attractive valuations and diversification opportunities, we
continue to expect high relative overseas exposure here as well.
PERFORMANCE HIGHLIGHTS
- - The Fund's valuation-based tilt toward the Telecommunication Services sector,
a significant change from the prior fiscal year, proved beneficial to overall
performance.
- - Continued mergers and acquisition activity and robust sales growth in
emerging markets provided a positive backdrop for Telecommunication Services
industries.
- - The wireless telecommunication services and integrated telecommunication
services industries contributed to Fund performance, while gas utilities and
independent power producers & energy traders detracted from performance.
56 Management Overview
INDUSTRY COMPOSITION
March 31, 2006
<Table>
Integrated Telecommunication Services 39.6%
Electric Utilities 15.8%
Wireless Telecommunication Services 15.0%
Communications Equipment 6.2%
Water Utilities 5.9%
Independent Power Producers & Energy Traders 3.8%
Multi-Utilities 2.1%
Electronic Equipment Manufacturers 1.8%
Electrical Components & Equipment 1.7%
Electronic Manufacturing Services 1.7%
Internet Software Services 1.3%
Oil & Gas Equipment & Services 1.1%
Consumer Electronics 1.0%
Alternative Carriers 0.9%
Coal & Consumable Fuels 0.6%
Technology Distributors 0.5%
Integrated Oil & Gas 0.4%
</Table>
Percentages are based upon net assets.
Management Overview 57
Management Overview (continued)
ICON Telecommunication & Utilities Fund
AVERAGE ANNUAL TOTAL RETURN
as of March 31, 2006
<Table>
<Caption>
SINCE
INCEPTION
6 MONTH* 1 YEAR 5 YEARS 7/9/97
- -------------------------------------------------------------------------------------------
ICON Telecommunication & Utilities Fund 3.06% 19.35% 6.66% 9.50%
- -------------------------------------------------------------------------------------------
S&P 1500 Telecommunications Services
Index 14.07% 16.76% -4.14% 1.45%
- -------------------------------------------------------------------------------------------
S&P 1500 Utilities Index -6.12% 9.83% 0.75% 7.54%
- -------------------------------------------------------------------------------------------
S&P 1500 Index 7.08% 13.05% 5.02% 6.49%
- -------------------------------------------------------------------------------------------
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indexes can be found on pages 2 and 3.
* Not annualized.
VALUE OF A $10,000 INVESTMENT
through March 31, 2006
[LINE GRAPH]
<Table>
<Caption>
ICON S&P 1500
TELECOMMUNICATION & TELECOMMUNICATIONS S&P 1500 UTILITIES
UTILITIES FUND SERVICES INDEX INDEX S&P 1500 INDEX
------------------- ------------------ ------------------ --------------
7/9/97 10000.00 10000.00 10000.00 10000.00
10630.00 10622.00 10417.00 10597.00
12253.00 12707.00 12118.00 10852.00
3/31/98 13800.00 14982.00 12775.00 12321.00
13528.00 14391.00 12766.00 12620.00
14231.00 15105.00 13226.00 11262.00
15927.00 19374.00 13625.00 13709.00
3/31/99 15110.00 20000.00 12192.00 14207.00
16924.00 22672.00 13518.00 15312.00
16401.00 21048.00 12967.00 14339.00
17026.00 23189.00 12330.00 16485.00
3/31/00 15958.00 22888.00 13585.00 16994.00
16306.00 19688.00 14281.00 16554.00
18858.00 17603.00 18732.00 16548.00
19039.00 14272.00 19530.00 15338.00
3/31/01 15995.00 14014.00 18172.00 13550.00
16564.00 13868.00 17309.00 14440.00
15327.00 13802.00 14540.00 12290.00
15596.00 12458.00 14271.00 13705.00
3/31/02 15322.00 10537.00 14813.00 13837.00
14173.00 8052.00 12587.00 12059.00
11948.00 5960.00 10056.00 9976.00
12737.00 8181.00 10542.00 10786.00
3/31/03 11625.00 7010.00 10216.00 10425.00
14077.00 8534.00 12283.00 12064.00
14380.00 7750.00 12292.00 12439.00
15985.00 8776.00 13319.00 13976.00
3/31/04 17289.00 9219.00 13956.00 14275.00
16215.00 9133.00 13832.00 14523.00
16906.00 9723.00 14699.00 14251.00
18497.00 10515.00 16403.00 15624.00
3/31/05 18497.00 9715.00 17175.00 15313.00
20075.00 10055.00 18792.00 15576.00
21420.00 9944.00 20094.00 16168.00
20542.00 9913.00 18900.00 16511.00
3/31/06 22076.00 11343.00 18864.00 17312.00
</Table>
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The above graph compares
a $10,000 investment made in the Fund on its inception date of 7/9/97 to a
$10,000 investment made in unmanaged securities indexes on that date. The Fund's
performance in this chart and the performance table assumes the reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
58 Management Overview
Schedule of Investments
ICON Telecommunication & Utilities Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
COMMON STOCKS (99.4%)
86,200 America Movil S.A.
De C.V. - ADR $ 2,953,211
17,900 American States
Water Co. 668,744
14,700 Amphenol Corp. -
Class A 767,046
7,600 Anixter
International,
Inc. 363,128
118,300 AT&T, Inc. 3,198,832
92,600 BellSouth Corp. 3,208,590
19,700 Benchmark
Electronics,
Inc.(a) 755,495
3,400 BP PLC - ADR 234,396
32,900 CalAmp Corp.(a) 386,246
30,000 California Water
Service Group 1,351,500
25,000 China Mobile,
Ltd. - ADR 663,500
74,300 China Unicom,
Ltd. - ADR 613,718
50,000 Companhia De
Saneamento Basico
do Estado De Sao
Paulo - ADR 1,100,500
35,600 Companhia
Energetica de
Minas Gerais - ADR 1,618,732
44,400 Companhia
Paranaense De
Energia - ADR 436,008
15,000 Compania Anonima
Nacional Telefonos
de Venezuela - ADR 317,700
18,000 Consolidated Water
Co., Ltd. 440,820
10,600 Constellation
Energy Group 579,926
36,300 CPFL Energia
S.A. - ADR 1,524,600
35,500 Duquesne Light
Holdings, Inc. 585,750
12,900 E.ON AG - ADR 472,140
36,600 EFJ, Inc.(a) 394,914
12,800 Exelon Corp. 677,120
16,200 FPL Group, Inc. 650,268
83,000 General
Communication,
Inc. - Class A(a) 1,003,470
10,600 Hubbell, Inc. -
Class B 543,356
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
27,500 IDACORP, Inc. $ 894,300
31,300 II-VI, Inc.(a) 566,217
10,000 International
Power PLC - ADR 492,500
18,500 j2 Global
Communications,
Inc.(a) 869,500
100,800 Korea Electric
Power Corp. - ADR 2,177,280
92,100 KT Corp. - ADR 1,961,730
13,600 Lufkin Industries,
Inc. 753,984
29,800 Matsushita
Electric
Industrial Co.,
Ltd. - ADR 659,772
14,800 NICE Systems,
Ltd. - ADR(a) 754,208
12,000 NII Holdings,
Inc.(a) 707,640
30,000 Nokia Corp. - ADR 621,600
21,300 Otter Tail Corp. 611,097
8,200 Peabody Energy
Corp. 413,362
27,200 Pepco Holdings,
Inc. 619,888
23,200 Philippine Long
Distance Telephone
Co. - ADR 871,624
25,000 Portugal Telecom,
SGPS, S.A. - ADR 305,500
73,100 Premiere Global
Services, Inc.(a) 588,455
100,000 PT Telekomunikasi
Indonesia - ADR 3,031,000
14,400 Qualcomm, Inc. 728,784
32,900 Radyne Corp.(a) 525,413
21,000 RELM Wireless
Corp.(a) 204,540
4,000 Rostelecom - ADR 77,000
8,000 RWE AG - ADR 698,400
14,000 Sempra Energy 650,440
25,000 SK Telecom Co.,
Ltd. - ADR 589,750
19,800 Southern Co. 648,846
20,040 Southwest Water
Co. 319,438
72,500 SpectraLink Corp. 909,875
37,600 Tele Norte Leste
Participacoes
S.A. - ADR 627,168
</Table>
Schedule of Investments 59
Schedule of Investments (continued)
ICON Telecommunication & Utilities Fund
March 31, 2006 (unaudited)
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
97,200 Telecomunicacoes
de Sao Paulo
S.A. - ADR $ 2,400,840
109,700 Telefonos De
Mexico S.A. De
C.V. - ADR 2,466,056
45,900 Telekom Austria
AG - ADR 2,159,595
10,000 Telemig Celular
Participacoes
S.A. - ADR 476,600
10,000 Telephone and Data
Systems, Inc. 394,400
10,000 Telkom South
Africa, Ltd. - ADR 1,050,100
46,300 Tim Participacoes
S.A. - ADR 1,714,489
9,300 Trimble
Navigation,
Ltd.(a) 418,965
22,100 TXU Corp. 989,196
102,900 Verizon
Communications,
Inc. 3,504,774
41,300 Vimpel
Communications -
ADR(a) 1,776,313
-----------
TOTAL COMMON STOCKS (COST
$56,251,621) 65,740,349
</Table>
<Table>
<Caption>
SHARES OR PRINCIPAL AMOUNT VALUE
- ---------------------------------------------
SHORT-TERM INVESTMENTS (3.6%)
$2,366,370 Brown Brothers
Harriman Time
Deposit,
4.07%, 04/03/06# $ 2,366,370
-----------
TOTAL SHORT-TERM INVESTMENTS
(COST 2,366,370) 2,366,370
-----------
TOTAL INVESTMENTS 103.0% (COST
$58,617,991) 68,106,719
-----------
LIABILITIES LESS OTHER ASSETS
(3.0)% (1,943,796)
-----------
TOTAL NET ASSETS 100.0% $66,162,923
===========
</Table>
The accompanying notes are an integral part of the financial statements.
(a) Non-income producing security.
# BBH Time Deposits are considered short-term obligations and are payable on
demand. Interest rates change periodically on specified dates. The rates
listed are as of March 31, 2006.
ADR American Depositary Receipt
60 Schedule of Investments
Six Month Hypothetical Expense Example
March 31, 2006 (unaudited)
EXAMPLE
As a shareholder of a Fund you may pay two types of fees: transaction fees and
fund-related fees. Certain funds charge transactions fees, including sales
charges (loads) on purchase payments, reinvested dividends, or other
distributions; redemption fees; and exchange fees. The ICON Funds do not charge
these types of fees. Funds also incur various ongoing expenses, including
management fees, distribution and/or service fees, and other fund expenses,
which are indirectly paid by shareholders.
This Example is intended to help you understand your ongoing costs (in dollars)
of investing in the various ICON Funds and to compare these costs with the
ongoing costs of investing in other mutual funds. This Example is based on an
investment of $1,000 invested at the beginning of the period and held for the
six-month period (10/1/05 - 3/31/06).
ACTUAL EXPENSES
The first line in the table for each Fund provides information about actual
account values and actual expenses. The Example includes, but is not limited to,
management fees, fund accounting, custody and transfer agent fees. However, the
Example does not include client specific fees, such as the $10.00 fee charged to
IRA accounts, or the $15.00 fee charged for wire redemptions. You may use this
information, together with the amount you invested, to estimate the expenses
that you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the first line for each Fund under the heading entitled
"Expenses Paid During Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table for each Fund provides information about
hypothetical account values and hypothetical expenses based on the Fund's actual
expense ratio and an assumed rate of return of 5% per year before expenses,
which is not the Fund's actual return. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare 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 the
shareholder reports of the other funds. Please note that the expenses shown in
the table are meant to highlight your ongoing costs only and do not reflect any
transactional costs, such as sales charges (loads), redemption fees, or exchange
fees that may be charged by other funds. Therefore, this information is useful
in comparing ongoing costs only, and will not help you determine the relative
total costs of owning different funds.
Expense Example 61
Six Month Hypothetical Expense Example (continued)
March 31, 2006 (unaudited)
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD EXPENSE RATIO
10/1/05 3/31/06 10/1/05-3/31/06* 10/1/05-3/31/06
- -------------------------------------------------------------------------------------------------
ICON CONSUMER
DISCRETIONARY FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses $1,000.00 $1,096.20 $6.53 1.25%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,018.77 6.29
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
ICON ENERGY FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,088.00 5.99 1.15%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,019.27 5.79
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
ICON FINANCIAL FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,118.60 6.34 1.20%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,019.02 6.04
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
ICON HEALTHCARE FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,056.30 6.00 1.17%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,019.17 5.89
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
ICON INDUSTRIALS FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,203.40 6.54 1.19%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,019.07 5.99
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
ICON INFORMATION
TECHNOLOGY FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,065.50 6.23 1.21%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,018.97 6.09
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
ICON LEISURE AND CONSUMER
STAPLES FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,030.40 8.50 1.68%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,016.62 8.45
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
</Table>
62 Expense Example
<Table>
<Caption>
BEGINNING ENDING EXPENSES PAID ANNUALIZED
ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD EXPENSE RATIO
10/1/05 3/31/06 10/1/05-3/31/06* 10/1/05-3/31/06
- -------------------------------------------------------------------------------------------------
ICON MATERIALS FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses $1,000.00 $1,206.00 $6.93 1.26%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,018.72 6.34
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
ICON TELECOMMUNICATION &
UTILITIES FUND
- -------------------------------------------------------------------------------------------------
Actual Expenses 1,000.00 1,030.60 6.73 1.33%
- -------------------------------------------------------------------------------------------------
Hypothetical Example 1,000.00 1,018.37 6.69
(5% return before
expenses)
- -------------------------------------------------------------------------------------------------
</Table>
* Expenses are equal to the Fund's six month expense ratio annualized,
multiplied by the average account value over the period, multiplied by 182/365
to reflect the one-half year period.
Expense Example 63
Statements of Assets and Liabilities
March 31, 2006 (unaudited)
<Table>
<Caption>
ICON
CONSUMER ICON ICON ICON
DISCRETIONARY FUND ENERGY FUND FINANCIAL FUND HEALTHCARE FUND
------------------ ------------ -------------- ---------------
ASSETS
Investments, at cost $138,381,194 $650,847,148 $206,702,212 $618,493,496
------------ ------------ ------------ ------------
Investments, at value 155,639,833 980,847,899 240,848,160 769,280,672
Cash - - - -
Receivables:
Fund shares sold 99,808 3,056,890 190,053 1,801,645
Investments sold - 14,609,420 619,641 1,555,082
Interest 55 - - 5,248
Dividends 117,331 206,293 262,108 90,201
Other assets 30,828 83,071 32,015 63,836
------------ ------------ ------------ ------------
Total Assets 155,887,855 998,803,573 241,951,977 772,796,684
------------ ------------ ------------ ------------
LIABILITIES
Payables:
Due to custodian bank - 10,216,623 1,413,876 -
Fund shares redeemed 134,901 1,437,027 262,771 708,927
Investments bought 1,094,730 4,152,151 - -
Advisory fees 129,414 786,753 202,684 635,434
Fund accounting fees 3,147 19,874 4,992 15,812
Transfer agent fees 4,184 4,902 10,476 4,247
Administration fees 6,111 38,423 9,612 30,588
Trustee fees 6,852 42,890 10,723 34,259
Accrued expenses 31,187 62,260 45,577 55,441
------------ ------------ ------------ ------------
Total Liabilities 1,410,526 16,760,903 1,960,711 1,484,708
------------ ------------ ------------ ------------
NET ASSETS $154,477,329 $982,042,670 $239,991,266 $771,311,976
============ ============ ============ ============
NET ASSETS CONSIST OF
Paid-in Capital $134,273,898 $604,600,473 $193,323,148 $600,779,406
Accumulated undistributed net investment
income/(loss) (355,609) (1,923,475) 457,573 (2,122,079)
Accumulated undistributed net realized
gain/(loss) from investments 3,300,401 49,364,921 12,064,597 21,867,473
Unrealized appreciation/(depreciation) on
investments 17,258,639 330,000,751 34,145,948 150,787,176
------------ ------------ ------------ ------------
NET ASSETS $154,477,329 $982,042,670 $239,991,266 $771,311,976
============ ============ ============ ============
Shares outstanding (unlimited shares
authorized, no par value) 12,354,100 27,515,296 17,131,024 41,305,690
Net Asset Value (offering price and
redemption price per share) $ 12.50 $ 35.69 $ 14.01 $ 18.67
</Table>
The accompanying notes are an integral part of the financial statements.
64 Financial Statements
<Table>
<Caption>
ICON
ICON LEISURE AND ICON
ICON INFORMATION CONSUMER ICON TELECOMMUNICATION
INDUSTRIALS FUND TECHNOLOGY FUND STAPLES FUND MATERIALS FUND & UTILITIES FUND
---------------- --------------- ------------ -------------- -----------------
$195,578,613 $272,014,506 $35,180,853 $135,010,837 $58,617,991
------------ ------------ ----------- ------------ -----------
260,272,381 321,651,324 40,128,244 167,248,004 68,106,719
16,575 - - 15,543 -
390,804 315,962 154,621 1,933,447 87,727
2,210,261 - 1,160,021 - 403,087
- 19 - 469 268
97,436 141,805 15,259 289,253 246,437
34,877 45,538 29,372 31,009 25,845
------------ ------------ ----------- ------------ -----------
263,022,334 322,154,648 41,487,517 169,517,725 68,870,083
------------ ------------ ----------- ------------ -----------
- 642,433 161,931 - -
297,483 270,682 44,060 83,473 89,129
1,302,139 - 1,469,277 2,718,625 2,526,842
217,696 269,711 33,032 131,722 54,418
5,303 6,563 813 3,201 1,354
2,518 12,144 9,571 5,947 7,356
10,277 12,748 1,566 6,220 2,584
11,532 14,271 1,749 6,991 2,882
33,983 41,938 28,313 6,532 22,595
------------ ------------ ----------- ------------ -----------
1,880,931 1,270,490 1,750,312 2,962,711 2,707,160
------------ ------------ ----------- ------------ -----------
$261,141,403 $320,884,158 $39,737,205 $166,555,014 $66,162,923
============ ============ =========== ============ ===========
$176,999,062 $322,806,740 $35,005,293 $121,249,800 $49,120,508
(434,708) (832,009) (191,126) 545,860 371,217
19,883,281 (50,727,391) (24,353) 12,522,187 7,182,470
64,693,768 49,636,818 4,947,391 32,237,167 9,488,728
------------ ------------ ----------- ------------ -----------
$261,141,403 $320,884,158 $39,737,205 $166,555,014 $66,162,923
============ ============ =========== ============ ===========
17,647,731 34,609,396 4,193,570 13,160,672 9,019,189
$ 14.80 $ 9.27 $ 9.48 $ 12.66 $ 7.34
</Table>
Financial Statements 65
Statements of Operations
For the period ended March 31, 2006 (unaudited)
<Table>
<Caption>
ICON
CONSUMER ICON ICON ICON
DISCRETIONARY FUND ENERGY FUND FINANCIAL FUND HEALTHCARE FUND
------------------ ----------- -------------- ---------------
INVESTMENT INCOME
Interest $ 41,853 $ 203,803 $ 37,982 $ 577,450
Dividends 425,649 3,397,208 1,939,740 1,509,440
Foreign taxes withheld - - - (6,712)
---------- ----------- ----------- -----------
Total Investment Income 467,502 3,601,011 1,977,722 2,080,178
---------- ----------- ----------- -----------
EXPENSES
Advisory fees 623,967 4,635,017 1,235,376 3,574,539
Fund accounting fees 16,316 113,405 31,049 87,552
Transfer agent fees 46,516 183,907 71,282 171,369
Custody fees 15,298 33,871 17,891 29,574
Administration fees 29,297 220,181 58,082 168,964
Registration fees 12,255 26,587 14,026 23,297
Insurance expense 5,905 20,844 6,565 15,978
Trustee fees and expenses 5,259 30,154 9,003 23,375
Interest expense 41,467 121,115 35,423 -
Other expenses 26,831 139,406 41,453 107,609
---------- ----------- ----------- -----------
Total expenses 823,111 5,524,487 1,520,150 4,202,257
---------- ----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) (355,609) (1,923,476) 457,572 (2,122,079)
---------- ----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON
INVESTMENTS
Net realized gain/(loss) from investment
transactions 4,086,840 57,323,056 15,034,753 21,890,056
Net realized gain/(loss) from foreign
currency translations - - - -
Change in unrealized
appreciation/(depreciation) on investments 5,067,807 10,441,284 11,326,477 20,961,118
---------- ----------- ----------- -----------
Net realized and unrealized gain/(loss) on
investments 9,154,647 67,764,340 26,361,230 42,851,174
---------- ----------- ----------- -----------
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS $8,799,038 $65,840,864 $26,818,802 $40,729,095
========== =========== =========== ===========
</Table>
The accompanying notes are an integral part of the financial statements.
66 Financial Statements
<Table>
<Caption>
ICON
ICON LEISURE AND ICON
ICON INFORMATION CONSUMER ICON TELECOMMUNICATION
INDUSTRIALS FUND TECHNOLOGY FUND STAPLES FUND MATERIALS FUND & UTILITIES FUND
---------------- --------------- ------------ -------------- -----------------
$ 38,936 $ 57,115 $ 2,934 $ 28,468 $ 10,484
879,096 819,174 159,432 1,370,247 1,084,759
(2,968) (15,300) - (2,331) (1,695)
----------- ----------- ---------- ----------- ------------
915,064 860,989 162,366 1,396,384 1,093,548
----------- ----------- ---------- ----------- ------------
1,138,028 1,379,638 204,051 669,207 400,766
28,838 34,521 6,688 17,005 10,874
47,912 88,790 64,507 72,638 49,451
14,958 17,106 17,366 10,016 14,924
53,463 64,798 9,595 31,431 18,864
15,842 17,972 16,560 14,957 13,522
6,845 9,574 3,632 3,570 3,571
8,350 10,695 3,144 4,579 2,972
12,055 18,220 10,783 5,198 31,477
39,509 51,684 17,166 21,924 14,876
----------- ----------- ---------- ----------- ------------
1,365,800 1,692,998 353,492 850,525 561,297
----------- ----------- ---------- ----------- ------------
(450,736) (832,009) (191,126) 545,859 532,251
----------- ----------- ---------- ----------- ------------
22,436,346 3,858,384 153,220 13,308,807 10,807,945
- - 2,784 (22,334) -
20,993,586 17,163,143 854,872 15,186,718 (12,000,623)
----------- ----------- ---------- ----------- ------------
43,429,932 21,021,527 1,010,876 28,473,191 (1,192,678)
----------- ----------- ---------- ----------- ------------
$42,979,196 $20,189,518 $ 819,750 $29,019,050 $ (660,427)
=========== =========== ========== =========== ============
</Table>
Financial Statements 67
Statements of Changes in Net Assets
<Table>
<Caption>
ICON CONSUMER
DISCRETIONARY FUND ICON ENERGY FUND
----------------------------------- -----------------------------------
PERIOD ENDED PERIOD ENDED
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------ -------------- ------------------
OPERATIONS
Net investment income/(loss) $ (355,609) $ (947,312) $ (1,923,476) $ 2,256,526
Net realized gain/(loss) from
investment transactions 4,086,840 21,149,069 57,323,056 22,940,745
Net realized gain/(loss) from foreign
currency translations - - - -
Change in unrealized appreciation/
depreciation on investments 5,067,807 (9,621,489) 10,441,284 259,958,925
------------ ------------ -------------- --------------
Net increase/(decrease) in net assets
resulting from operations 8,799,038 10,580,268 65,840,864 285,156,196
------------ ------------ -------------- --------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Net investment income - - (2,256,525) -
Net realized gains (15,842,362) - (23,251,426) -
------------ ------------ -------------- --------------
Net decrease from dividends and
distributions (15,842,362) - (25,507,951) -
------------ ------------ -------------- --------------
FUND SHARE TRANSACTIONS
Shares sold 63,406,438 50,107,439 230,173,507 711,655,180
Reinvested dividends and
distributions 15,740,469 - 24,368,155 -
Shares repurchased (87,048,016) (43,187,689) (321,789,746) (275,467,439)
------------ ------------ -------------- --------------
Net increase/(decrease) from fund
share transactions (7,901,109) 6,919,750 (67,248,084) 436,187,741
------------ ------------ -------------- --------------
Total net increase/(decrease) in net
assets (14,944,433) 17,500,018 (26,915,171) 721,343,937
NET ASSETS
Beginning of period 169,421,762 151,921,744 1,008,957,841 287,613,904
------------ ------------ -------------- --------------
End of period $154,477,329 $169,421,762 $ 982,042,670 $1,008,957,841
============ ============ ============== ==============
TRANSACTIONS IN FUND SHARES
Shares sold 5,348,643 3,605,400 6,791,988 27,585,644
Reinvested dividends and
distributions 1,362,806 - 760,300 -
Shares repurchased (6,803,217) (3,120,303) (9,924,453) (10,886,604)
------------ ------------ -------------- --------------
Net increase/(decrease) (91,768) 485,097 (2,372,165) 16,699,040
Shares outstanding beginning of
period 12,445,868 11,960,771 29,887,461 13,188,421
------------ ------------ -------------- --------------
Shares outstanding end of period 12,354,100 12,445,868 27,515,296 29,887,461
============ ============ ============== ==============
PURCHASE AND SALES OF INVESTMENT
SECURITIES
(excluding short-term securities)
Purchase of securities $111,226,313 $270,228,278 $ 147,231,017 $ 565,978,887
Proceeds from sales of securities 135,277,169 263,033,052 195,868,836 155,874,919
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME/(LOSS) $ (355,609) $ - $ (1,923,475) $ 2,256,526
============ ============ ============== ==============
</Table>
The accompanying notes are an integral part of the financial statements.
68 Financial Statements
<Table>
<Caption>
ICON FINANCIAL FUND ICON HEALTHCARE FUND ICON INDUSTRIALS FUND
------------------------------------ ------------------------------------ ------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------ -------------- ------------------ -------------- ------------------
$ 457,572 $ 1,894,706 $ (2,122,079) $ (3,785,078) $ (450,736) $ (664,614)
15,034,753 15,015,457 21,890,056 10,569,614 22,436,346 28,540,115
- - - - - -
11,326,477 (4,980,248) 20,961,118 96,973,294 20,993,586 6,079,683
------------ ------------- ------------- ------------- ------------ -------------
26,818,802 11,929,915 40,729,095 103,757,830 42,979,196 33,955,184
------------ ------------- ------------- ------------- ------------ -------------
(1,744,311) (400,204) - - - -
(16,113,682) (14,368,848) (10,591,515) (877,529) (6,835,273) -
------------ ------------- ------------- ------------- ------------ -------------
(17,857,993) (14,769,052) (10,591,515) (877,529) (6,835,273) -
------------ ------------- ------------- ------------- ------------ -------------
75,480,347 160,151,652 221,130,838 513,075,619 45,942,671 116,314,931
17,760,399 14,495,645 9,893,314 842,844 6,801,064 -
(73,093,565) (149,318,334) (172,609,095) (219,709,399) (44,381,863) (143,327,765)
------------ ------------- ------------- ------------- ------------ -------------
20,147,181 25,328,963 58,415,057 294,209,064 8,361,872 (27,012,834)
------------ ------------- ------------- ------------- ------------ -------------
29,107,990 22,489,826 88,552,637 397,089,365 44,505,795 6,942,350
210,883,276 188,393,450 682,759,339 285,669,974 216,635,608 209,693,258
------------ ------------- ------------- ------------- ------------ -------------
$239,991,266 $ 210,883,276 $ 771,311,976 $ 682,759,339 $261,141,403 $ 216,635,608
============ ============= ============= ============= ============ =============
5,456,427 12,078,196 12,206,875 30,887,090 3,340,071 9,680,063
1,353,679 1,066,641 557,019 53,243 543,216 -
(5,386,988) (11,535,456) (9,520,348) (13,735,740) (3,300,086) (12,555,300)
------------ ------------- ------------- ------------- ------------ -------------
1,423,118 1,609,381 3,243,546 17,204,593 583,201 (2,875,237)
15,707,906 14,098,525 38,062,144 20,857,551 17,064,530 19,939,767
------------ ------------- ------------- ------------- ------------ -------------
17,131,024 15,707,906 41,305,690 38,062,144 17,647,731 17,064,530
============ ============= ============= ============= ============ =============
$208,407,405 $ 334,005,678 $ 238,376,990 $ 493,069,662 $ 90,153,885 $ 131,854,781
204,524,293 321,445,227 220,931,049 216,184,507 87,531,681 161,003,971
$ 457,573 $ 1,744,312 $ (2,122,079) $ - $ (434,708) $ 16,028
============ ============= ============= ============= ============ =============
</Table>
Financial Statements 69
Statements of Changes in Net Assets (continued)
<Table>
<Caption>
ICON INFORMATION TECHNOLOGY FUND
------------------------------------
PERIOD ENDED
MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------
OPERATIONS:
Net investment income/(loss) $ (832,009) $ (2,393,338)
Net realized gain/(loss) from investment transactions 3,858,384 9,986,052
Net realized gain/(loss) from foreign currency
translations - -
Change in net unrealized appreciation/depreciation on
investments 17,163,143 12,306,795
------------ -------------
Net increase/(decrease) in net assets resulting from
operations 20,189,518 19,899,509
------------ -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Net investment income - -
Net realized gains - -
------------ -------------
Net decrease from dividends and distributions - -
------------ -------------
FUND SHARE TRANSACTIONS
Shares sold 126,646,222 183,518,365
Reinvested dividends and distributions - -
Shares repurchased (46,025,012) (227,596,847)
------------ -------------
Net increase/(decrease) from fund share transactions 80,621,210 (44,078,482)
------------ -------------
Total net increase/(decrease) in net assets 100,810,728 (24,178,973)
NET ASSETS:
Beginning of period 220,073,430 244,252,403
------------ -------------
End of period $320,884,158 $ 220,073,430
============ =============
TRANSACTIONS IN FUND SHARES
Shares sold 14,481,708 22,003,840
Reinvested dividends and distributions - -
Shares repurchased (5,178,912) (27,607,984)
------------ -------------
Net increase/(decrease) 9,302,796 (5,604,144)
Shares outstanding beginning of period 25,306,600 30,910,744
------------ -------------
Shares outstanding end of period 34,609,396 25,306,600
============ =============
PURCHASE AND SALES OF INVESTMENT SECURITIES
(excluding short-term securities)
Purchase of securities $209,792,026 $ 395,041,638
Proceeds from sales of securities 128,532,278 442,915,109
ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME/(LOSS) $ (832,009) $ -
============ =============
</Table>
The accompanying notes are an integral part of the financial statements.
70 Financial Statements
<Table>
<Caption>
ICON LEISURE AND ICON TELECOMMUNICATION &
CONSUMER STAPLES FUND ICON MATERIALS FUND UTILITIES FUND
------------------------------------ ------------------------------------ ------------------------------------
PERIOD ENDED PERIOD ENDED PERIOD ENDED
MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED MARCH 31, 2006 YEAR ENDED
(UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005 (UNAUDITED) SEPTEMBER 30, 2005
-------------- ------------------ -------------- ------------------ -------------- ------------------
$ (191,126) $ (451,588) $ 545,859 $ 333,419 $ 532,251 $ 1,905,415
153,220 12,701,511 13,308,807 28,105,684 10,807,945 10,867,997
2,784 - (22,334) - - -
854,872 (9,663,969) 15,186,718 (7,049,729) (12,000,623) 12,025,488
------------ ------------- ------------ ------------- ------------ ------------
819,750 2,585,954 29,019,050 21,389,374 (660,427) 24,798,900
------------ ------------- ------------ ------------- ------------ ------------
- - (236,508) (163,349) (1,880,275) (767,065)
(9,573,812) (13,572,229) (9,051,351) - (9,640,653) -
------------ ------------- ------------ ------------- ------------ ------------
(9,573,812) (13,572,229) (9,287,859) (163,349) (11,520,928) (767,065)
------------ ------------- ------------ ------------- ------------ ------------
5,083,773 156,682,191 67,095,394 89,687,347 11,934,452 93,654,010
8,013,754 13,378,405 8,769,250 160,788 11,345,862 762,535
(12,016,513) (194,686,497) (28,610,175) (151,343,125) (65,586,581) (59,123,198)
------------ ------------- ------------ ------------- ------------ ------------
1,081,014 (24,625,901) 47,254,469 (61,494,990) (42,306,267) 35,293,347
------------ ------------- ------------ ------------- ------------ ------------
(7,673,048) (35,612,176) 66,985,660 (40,268,965) (54,487,622) 59,325,182
47,410,253 83,022,429 99,569,354 139,838,319 120,650,545 61,325,363
------------ ------------- ------------ ------------- ------------ ------------
$ 39,737,205 $ 47,410,253 $166,555,014 $ 99,569,354 $ 66,162,923 $120,650,545
============ ============= ============ ============= ============ ============
512,216 12,172,021 6,011,891 8,775,257 1,598,255 12,890,779
900,421 1,067,710 825,717 15,794 1,644,205 106,947
(1,182,358) (14,999,963) (2,488,542) (15,426,293) (8,798,101) (7,698,688)
------------ ------------- ------------ ------------- ------------ ------------
230,279 (1,760,232) 4,349,066 (6,635,242) (5,555,641) 5,299,038
3,963,291 5,723,523 8,811,606 15,446,848 14,574,830 9,275,792
------------ ------------- ------------ ------------- ------------ ------------
4,193,570 3,963,291 13,160,672 8,811,606 9,019,189 14,574,830
============ ============= ============ ============= ============ ============
$ 52,165,701 $ 261,063,086 $138,667,026 $ 132,449,934 $ 58,618,566 $149,329,103
60,739,700 299,173,481 103,752,539 191,074,580 112,171,214 113,156,179
$ (191,126) $ - $ 545,860 $ 236,509 $ 371,217 $ 1,719,241
============ ============= ============ ============= ============ ============
</Table>
Financial Statements 71
Financial Highlights
<Table>
<Caption>
INCOME FROM INVESTMENT OPERATIONS
----------------------------------------
NET ASSET NET NET REALIZED
VALUE, INVESTMENT AND UNREALIZED TOTAL FROM
BEGINNING INCOME/ GAINS/(LOSSES) INVESTMENT
OF PERIOD (LOSS)(X) ON INVESTMENTS OPERATIONS
--------- ---------- -------------- ----------
ICON CONSUMER DISCRETIONARY FUND
Period Ended March 31, 2006
(unaudited) $13.61 (0.04) 1.16 1.12
Year Ended September 30, 2005 $12.70 (0.08) 0.99 0.91
Year Ended September 30, 2004 $11.79 (0.05) 0.96 0.91
Year Ended September 30, 2003 $10.12 (0.08) 1.75 1.67
Year Ended September 30, 2002 $ 8.96 (0.06) 1.22 1.16
Year Ended September 30, 2001 $ 9.23 (0.01) (0.26) (0.27)
ICON ENERGY FUND
Period Ended March 31, 2006
(unaudited) $33.76 (0.07) 2.93 2.86
Year Ended September 30, 2005 $21.81 0.10 11.85 11.95
Year Ended September 30, 2004 $13.70 (0.04) 8.15 8.11
Year Ended September 30, 2003 $11.84 (0.04) 1.90 1.86
Year Ended September 30, 2002 $11.29 (0.08) 0.65 0.57
Year Ended September 30, 2001 $13.19 0.07 (0.76) (0.69)
ICON FINANCIAL FUND
Period Ended March 31, 2006
(unaudited) $13.43 0.03 1.50 1.53
Year Ended September 30, 2005 $13.36 0.13 0.99 1.12
Year Ended September 30, 2004 $10.78 0.04 2.60 2.64
Year Ended September 30, 2003 $ 8.84 0.05 1.92 1.97
Year Ended September 30, 2002 $12.04 (0.01) (1.08) (1.09)
Year Ended September 30, 2001 $12.26 0.06 1.13 1.19
ICON HEALTHCARE FUND
Period Ended March 31, 2006
(unaudited) $17.94 (0.05) 1.05 1.00
Year Ended September 30, 2005 $13.70 (0.14) 4.42 4.28
Year Ended September 30, 2004 $12.28 (0.14) 1.56 1.42
Year Ended September 30, 2003 $10.35 (0.09) 2.02 1.93
Year Ended September 30, 2002 $11.57 (0.12) (0.49) (0.61)
Year Ended September 30, 2001 $11.93 (0.10) 0.51 0.41
ICON INDUSTRIALS FUND
Period Ended March 31, 2006
(unaudited) $12.70 (0.03) 2.54 2.51
Year Ended September 30, 2005 $10.52 (0.04) 2.22 2.18
Year Ended September 30, 2004 $ 8.80 (0.05) 1.77 1.72
Year Ended September 30, 2003 $ 7.96 (0.05) 0.89 0.84
Year Ended September 30, 2002 $ 8.55 (0.02) (0.57) (0.59)
Year Ended September 30, 2001 $ 9.07 (0.02) (0.48) (0.50)
<Caption>
LESS DIVIDENDS AND DISTRIBUTIONS
-------------------------------------------------------
DIVIDENDS DISTRIBUTIONS TOTAL
FROM NET FROM NET DIVIDENDS
INVESTMENT REALIZED RETURN AND
INCOME GAINS OF CAPITAL DISTRIBUTIONS
---------- ------------- ---------- -------------
ICON CONSUMER DISCRETIONARY FUND
Period Ended March 31, 2006
(unaudited) - (2.23) - (2.23)
Year Ended September 30, 2005 - - - -
Year Ended September 30, 2004 - - - -
Year Ended September 30, 2003 - - - -
Year Ended September 30, 2002 - - - -
Year Ended September 30, 2001 - - - -
ICON ENERGY FUND
Period Ended March 31, 2006
(unaudited) (0.08) (0.85) - (0.93)
Year Ended September 30, 2005 - - - -
Year Ended September 30, 2004 - - - -
Year Ended September 30, 2003 - - - -
Year Ended September 30, 2002 (0.02) - - (0.02)
Year Ended September 30, 2001 (0.09) (1.12) - (1.21)
ICON FINANCIAL FUND
Period Ended March 31, 2006
(unaudited) (0.09) (0.86) - (0.95)
Year Ended September 30, 2005 (0.03) (1.02) - (1.05)
Year Ended September 30, 2004 (0.06) - - (0.06)
Year Ended September 30, 2003 (0.03) - - (0.03)
Year Ended September 30, 2002 - (2.11) - (2.11)
Year Ended September 30, 2001 (1.41) - - (1.41)
ICON HEALTHCARE FUND
Period Ended March 31, 2006
(unaudited) - (0.27) - (0.27)
Year Ended September 30, 2005 - (0.04) - (0.04)
Year Ended September 30, 2004 - - - -
Year Ended September 30, 2003 - - - -
Year Ended September 30, 2002 - (0.56) (0.05) (0.61)
Year Ended September 30, 2001 - (0.77) - (0.77)
ICON INDUSTRIALS FUND
Period Ended March 31, 2006
(unaudited) - (0.41) - (0.41)
Year Ended September 30, 2005 - - - -
Year Ended September 30, 2004 - - - -
Year Ended September 30, 2003 - - - -
Year Ended September 30, 2002 - - - -
Year Ended September 30, 2001 (0.02) - - (0.02)
</Table>
(x) Calculated using the average share method.
* The total return calculation is for the period indicated.
(a) Annualized for periods less than a year.
The accompanying notes are an integral part of the financial statements.
72 Financial Highlights
<Table>
<Caption>
RATIO OF RATIO OF NET
NET ASSET AVERAGE NET EXPENSES INVESTMENT
VALUE, NET ASSETS, ASSETS FOR TO AVERAGE INCOME/(LOSS) PORTFOLIO
END OF TOTAL END OF PERIOD THE PERIOD NET ASSETS TO AVERAGE TURNOVER
PERIOD RETURN* (IN THOUSANDS) (IN THOUSANDS) (A) NET ASSETS (A) RATE
--------- ------- -------------- -------------- ---------- -------------- ---------
$12.50 9.62% $ 154,477 125,054 1.25% (0.57)% 86.76%
$13.61 7.17% $ 169,422 167,635 1.25% (0.57)% 157.94%
$12.70 7.72% $ 151,922 178,011 1.31% (0.38)% 120.63%
$11.79 16.50% $ 150,065 118,834 1.40% (0.79)% 174.51%
$10.12 12.95% $ 121,640 184,174 1.29% (0.49)% 128.06%
$ 8.96 (2.93)% $ 107,075 78,281 1.37% (0.10)% 88.20%
$35.69 8.80% $ 982,043 939,429 1.15% (0.41)% 15.57%
$33.76 54.79% $1,008,998 602,922 1.21% 0.37% 27.51%
$21.81 59.20% $ 287,614 127,920 1.35% (0.20)% 13.42%
$13.70 15.71% $ 55,629 74,883 1.40% (0.29)% 42.53%
$11.84 5.03% $ 104,220 71,434 1.35% (0.61)% 26.30%
$11.29 (6.53)% $ 36,945 49,195 1.39% 0.54% 134.77%
$14.01 11.86% $ 239,991 247,914 1.20% 0.37% 83.81%
$13.43 8.29% $ 210,883 188,864 1.26% 1.00% 170.75%
$13.36 24.53% $ 188,393 162,121 1.32% 0.34% 114.50%
$10.78 22.35% $ 139,261 131,042 1.34% 0.54% 142.77%
$ 8.84 (11.88)% $ 110,116 60,904 1.36% (0.06)% 69.58%
$12.04 9.57% $ 54,318 59,425 1.41% 0.51% 174.41%
$18.67 5.63% $ 771,312 721,550 1.17% (0.59)% 32.16%
$17.94 31.39% $ 682,750 463,813 1.22% (0.82)% 47.88%
$13.70 11.56% $ 285,670 244,742 1.29% (1.04)% 52.72%
$12.28 18.65% $ 141,259 120,068 1.34% (0.84)% 85.52%
$10.35 (5.63)% $ 93,031 44,042 1.39% (1.05)% 104.90%
$11.57 3.39% $ 33,646 35,981 1.45% (0.98)% 145.08%
$14.80 20.34% $ 261,141 228,475 1.19% (0.40)% 38.26%
$12.70 20.72% $ 216,636 196,295 1.24% (0.34)% 67.25%
$10.52 19.55% $ 209,693 179,657 1.29% (0.47)% 45.77%
$ 8.80 10.55% $ 132,554 70,382 1.43% (0.64)% 90.49%
$ 7.96 (6.90)% $ 63,919 107,335 1.30% (0.24)% 99.22%
$ 8.55 (5.55)% $ 76,325 55,928 1.38% (0.16)% 72.65%
</Table>
Financial Highlights 73
Financial Highlights (continued)
<Table>
<Caption>
INCOME FROM INVESTMENT OPERATIONS LESS DIVIDENDS AND DISTRIBUTIONS
---------------------------------------- ------------------------------------------
NET ASSET NET NET REALIZED DIVIDENDS DISTRIBUTIONS
VALUE, INVESTMENT AND UNREALIZED TOTAL FROM FROM NET FROM NET TOTAL
BEGINNING INCOME/ GAINS/(LOSSES) INVESTMENT INVESTMENT REALIZED DIVIDENDS AND
OF PERIOD (LOSS)(X) ON INVESTMENTS OPERATIONS INCOME GAINS DISTRIBUTIONS
--------- ---------- -------------- ---------- ---------- ------------- -------------
ICON INFORMATION TECHNOLOGY
FUND
Period Ended March 31,
2006 (unaudited) $ 8.70 (0.03) 0.60 0.57 - - -
Year Ended September 30,
2005 $ 7.90 (0.08) 0.88 0.80 - - -
Year Ended September 30,
2004 $ 8.27 (0.08) (0.29) (0.37) - - -
Year Ended September 30,
2003 $ 5.98 (0.08) 2.37 2.29 - - -
Year Ended September 30,
2002 $ 7.80 (0.10) (1.72) (1.82) - - -
Year Ended September 30,
2001 $22.13 (0.10) (4.03) (4.13) - (10.20) (10.20)
ICON LEISURE AND CONSUMER
STAPLES FUND
Period Ended March 31,
2006 (unaudited) $11.96 (0.05) 0.24 0.19 - (2.67) (2.67)
Year Ended September 30,
2005 $14.51 (0.06) 0.94 0.88 - (3.43) (3.43)
Year Ended September 30,
2004 $12.42 (0.04) 2.13 2.09 - - -
Year Ended September 30,
2003 $11.20 (0.06) 1.28 1.22 - - -
Year Ended September 30,
2002 $ 9.42 (0.07) 1.85 1.78 - -
Year Ended September 30,
2001 $ 9.24 (0.05) 0.26 0.21 (0.01) (0.02) (0.03)
ICON MATERIALS FUND
Period Ended March 31,
2006 (unaudited) $11.30 0.05 2.12 2.17 (0.02) (0.79) (0.81)
Year Ended September 30,
2005 $ 9.05 0.03 2.23 2.26 (0.01) - (0.01)
Year Ended September 30,
2004 $ 6.20 0.01 2.87 2.88 (0.03) - (0.03)
Year Ended September 30,
2003 $ 5.68 0.03 0.50 0.53 (0.01) - (0.01)
Year Ended September 30,
2002 $ 5.70 0.02 (0.01) 0.01 (0.03) - (0.03)
Year Ended September 30,
2001 $ 6.49 0.02 (0.74) (0.72) (0.07) - (0.07)
ICON TELECOMMUNICATION &
UTILITIES FUND
Period Ended March 31,
2006 (unaudited) $ 8.28 0.05 0.13 0.18 (0.18) (0.94) (1.12)
Year Ended September 30,
2005 $ 6.61 0.14 1.61 1.75 (0.08) - (0.08)
Year Ended September 30,
2004 $ 5.69 0.07 0.92 0.99 (0.07) - (0.07)
Year Ended September 30,
2003 $ 4.78 0.10 0.87 0.97 (0.06) - (0.06)
Year Ended September 30,
2002 $ 6.19 0.10 (1.45) (1.35) (0.06) - (0.06)
Year Ended September 30,
2001 $ 8.13 0.09 (1.52) (1.43) (0.11) (0.40) (0.51)
</Table>
(x) Calculated using the average share method.
* The total return calculation is for the period indicated.
(a) Annualized for periods less than a year.
The accompanying notes are an integral part of the financial statements.
74 Financial Highlights
<Table>
<Caption>
RATIO OF NET
NET ASSET AVERAGE NET RATIO OF INVESTMENT
VALUE, NET ASSETS, ASSETS FOR THE EXPENSES INCOME/(LOSS) PORTFOLIO
END OF TOTAL END OF PERIOD PERIOD TO AVERAGE TO AVERAGE TURNOVER
PERIOD RETURN* (IN THOUSANDS) (IN THOUSANDS) NET ASSETS (A) NET ASSETS (A) RATE
--------- ------- -------------- --------------- -------------- -------------- ---------
$ 9.27 6.55% $320,884 277,239 1.21% (0.60)% 46.74%
$ 8.70 10.13% $220,073 264,222 1.29% (0.91)% 152.16%
$ 7.90 (4.47)% $244,252 282,062 1.31% (0.91)% 189.67%
$ 8.27 38.29% $307,972 190,287 1.35% (1.16)% 155.39%
$ 5.98 (23.33)% $ 75,623 189,972 1.31% (1.09)% 190.09%
$ 7.80 (32.90)% $118,851 99,875 1.37% (0.90)% 70.32%
$ 9.48 3.04% $ 39,737 40,879 1.68% (0.94)% 126.26%
$11.96 5.01% $ 47,410 99,988 1.30% (0.45)% 271.72%
$14.51 16.83% $ 83,022 104,515 1.33% (0.31)% 148.43%
$12.42 10.89% $ 82,347 80,928 1.38% (0.51)% 139.54%
$11.20 18.90% $ 88,341 86,202 1.34% (0.55)% 90.43%
$ 9.42 2.26% $ 41,162 41,086 1.40% (0.50)% 148.23%
$12.66 20.60% $166,555 134,573 1.26% 0.81% 76.61%
$11.30 25.04% $ 99,569 101,971 1.31% 0.33% 128.01%
$ 9.05 46.61% $139,838 68,497 1.37% 0.13% 59.48%
$ 6.20 9.36% $ 30,376 40,156 1.47% 0.59% 130.01%
$ 5.68 0.06% $ 59,020 45,917 1.36% 0.23% 74.55%
$ 5.70 (11.07)% $ 29,200 24,544 1.47% 0.40% 91.28%
$ 7.34 3.06% $ 66,163 80,074 1.33% 1.33% 70.85%
$ 8.28 26.70% $120,651 101,129 1.26% 1.88% 112.91%
$ 6.61 17.57% $ 61,325 54,232 1.37% 1.07% 108.81%
$ 5.69 20.36% $ 42,509 53,219 1.41% 2.05% 158.24%
$ 4.78 (22.05)% $ 66,366 20,196 1.50% 1.78% 137.81%
$ 6.19 (18.74)% $ 16,537 13,554 1.54% 1.22% 46.10%
</Table>
Financial Highlights 75
Notes to Financial Statements (unaudited)
March 31, 2006
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The ICON Consumer Discretionary Fund ("Consumer Discretionary Fund"), ICON
Energy Fund ("Energy Fund"), ICON Financial Fund ("Financial Fund"), ICON
Healthcare Fund ("Healthcare Fund"), ICON Industrials Fund ("Industrials Fund"),
ICON Information Technology Fund ("Information Technology Fund"), ICON Leisure
and Consumer Staples Fund ("Leisure and Consumer Staples Fund"), ICON Materials
Fund ("Materials Fund"), and ICON Telecommunication & Utilities Fund
("Telecommunication & Utilities Fund") are series funds (individually a "Fund"
and collectively, the "Funds"). The Funds are part of the ICON Funds (the
"Trust"), a Massachusetts business trust registered under the Investment Company
Act of 1940, as amended (the "1940 Act"), as an open-end investment management
company. There are eight other active funds within the Trust. Those funds are
covered by separate prospectuses and shareholder reports.
The Funds invest primarily in securities of companies whose principal business
activities fall within specific industries and sectors. Each Fund is authorized
to issue an unlimited number of no par shares. The investment objective of each
of Fund is to provide long-term capital appreciation.
The Funds may have elements of risk, including the loss of principal. There is
no assurance that the investment process will consistently lead to successful
results. An investment in a non-diversified sector fund may involve greater risk
and volatility than a diversified fund. Investments in foreign securities and
currency transactions may involve certain considerations and risks not typically
associated with those of U.S. dollar-denominated transactions as a result of,
among other factors, the possibility of lower government supervision and
regulation of foreign securities markets and the possibility of political or
economic instability. There are also risks associated with small- and mid-cap
investing, including limited product lines, less liquidity and small market
share.
In addition, in the normal course of business the Funds may enter into various
agreements that provide for general indemnifications. Each Fund's maximum
exposure under these arrangements is unknown as any potential exposure involves
future claims that may be made against each Fund. However, based on experience,
the Funds expect the risk of loss to be remote.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
certain estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of income and expenses during the
reporting period. Actual results could differ from these estimates.
76 Notes to Financial Statements
INVESTMENT VALUATION
The Funds' securities and other assets are valued at the closing price at the
close of the regular trading session of the New York Stock Exchange (the "NYSE")
(normally 4 p.m. Eastern time) each day the NYSE is open, except that securities
traded primarily on the NASDAQ Stock Market ("NASDAQ") are normally valued by a
Fund at the NASDAQ Official Closing Price provided by NASDAQ each business day.
The Funds use pricing services to report the market value of securities in their
portfolios; if a pricing service is not able to provide a price, or the pricing
service quote of valuation is considered inaccurate or does not reflect the
market value of the security, prices may be obtained through market quotations
from independent broker/dealers. If market quotations from these sources are not
readily available, the Funds' securities or other assets are valued at fair
value as determined in good faith by the Funds' Board of Trustees ("Board") or
pursuant to procedures approved by the Board.
Lacking any sales that day, the security is valued at the current closing bid
price (or yield equivalent thereof) or based on quotes from dealers making a
market for the security. Options are valued at their closing mid-price on the
principal market where the option is traded. Mid-price is the average of the
closing bid and closing ask prices. Debt securities with a remaining maturity of
greater than sixty days are valued in accordance with the evaluated bid price
supplied by the pricing service. The evaluated bid price supplied by the pricing
service is a matrix system which considers such factors as security prices,
yields, maturities and ratings. Short-term securities with remaining maturities
of sixty days or less are generally valued at amortized cost or original cost
plus accrued interest, which approximates market value. Currency rates as of the
close of the New York Stock Exchange are used to convert foreign security values
into U.S. dollars.
Foreign securities traded in countries outside of the Western Hemisphere are
fair valued daily by utilizing the quotations of an independent pricing service,
unless the Funds' adviser determines that use of another valuation methodology
is appropriate. The pricing service uses statistical analyses and quantitative
models to adjust local market prices using factors such as subsequent movement
and changes in the prices of indexes, securities and exchange rates in other
markets in determining fair value as of the time a Fund calculates its net asset
value. The valuation assigned to fair-valued securities for purposes of
calculating a Fund's net asset value ("NAV") may differ from the security's most
recent closing market price and from the prices used by other mutual funds to
calculate their NAVs.
REPURCHASE AGREEMENTS
Repurchase agreements, if held by the Funds, are fully collateralized by U.S.
Government securities and such collateral is in the possession of the Funds'
Notes to Financial Statements 77
Notes to Financial Statements (unaudited) (continued)
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. In the event of default on the obligation to repurchase, the Funds
have the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. In the event of default or bankruptcy by the
other party to the agreement, realization and/or retention of the collateral or
proceeds may be subject to legal proceedings. No repurchase agreements were
purchased or sold by the Funds during the period ended March 31, 2006.
FOREIGN CURRENCY TRANSLATION
The accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are translated into U.S. dollars at the prevailing rates of exchange daily.
Income and expenses are translated into U.S. dollars at the prevailing exchange
rate on the respective dates of the transactions. Purchases and sales of
securities are translated into U.S. dollars at the contractual currency exchange
rates established at the time of each trade.
FORWARD FOREIGN CURRENCY CONTRACTS
The Funds may enter into short-term forward foreign currency contracts in
connection with planned purchases or sales of securities as a hedge against
fluctuations in foreign exchange rates pending the settlement of transactions in
foreign securities. A forward foreign currency contract is an agreement between
contracting parties to exchange an amount of currency at some future time with
an agreed upon rate. These contracts are marked-to-market daily and the related
appreciation or depreciation of the contract is presented in the Statements of
Assets and Liabilities. Net realized gains and losses on foreign currency
transactions represent disposition of foreign currencies, and the difference
between the amount recorded at the time of the transaction and the U.S. dollar
amount actually received. Any realized gain or loss incurred by the Funds due to
foreign currency translation is included in the Statements of Operations.
The Funds do not isolate that portion of the results of operations resulting
from changes in foreign exchange rates on investments from the fluctuations
arising from changes in market prices of securities held. Net unrealized
appreciation or depreciation on investments and foreign currency translations
arise from changes in the value of assets and liabilities, including investments
in securities, resulting from changes in the exchange rates and changes in
market prices of securities held. The Funds did not enter into any forward
foreign currency contracts during the period ended March 31, 2006.
78 Notes to Financial Statements
FUTURES CONTRACTS
The Funds may invest in financial futures contracts for the purpose of hedging
their existing securities or securities it intends to purchase against
fluctuations in fair value caused by changes in prevailing markets. Upon
entering into a financial futures contract, the Fund is required to pledge to
the broker an amount of cash and/or other assets equal to a certain percentage
of the contract amount (initial margin deposit). Subsequent payments, known as
"variation margin," are made or received by the Fund each day, depending on the
daily fluctuations in the fair value of the underlying security. The Fund
recognizes a gain or loss equal to the daily variation margin. Should market
conditions move unexpectedly, the Fund may not achieve the anticipated benefits
of the financial futures contracts and may realize a loss. The use of futures
transactions involves the risk of imperfect correlation in movements in the
price of futures contracts and the underlying hedged assets. The Funds held no
financial futures contracts during the period ended March 31, 2006.
OPTIONS TRANSACTIONS
Each Fund may write put and call options only if it owns an offsetting position
in the underlying security. When a Fund writes a put or call option, an amount
equal to the premium received is included in the Statement of Assets and
Liabilities as a liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option. If an option
expires on its stipulated expiration date or if the Fund enters into a closing
purchase transaction, a gain or loss is realized. If a written call option is
exercised, a gain or loss is realized for the sale of the underlying security
and the proceeds from the sale are increased by the premium originally received.
If a written put option is exercised, the cost of the security acquired is
decreased by the premium originally received. As a writer of an option, a Fund
has no control over whether the underlying securities are subsequently sold
(call) or purchased (put) and, as a result, bears the market risk of an
unfavorable change in the price of the security underlying the written option.
Each Fund may also purchase put and call options. When a Fund purchases a call
or put option, an amount equal to the premium paid is included in the Fund's
Statement of Assets and Liabilities as an investment, and is subsequently
marked-to-market to reflect the current market value of the option. If an option
expires on the stipulated expiration date or if the Fund enters into a closing
sale transaction, a gain or loss is realized. If the Fund exercises a call, the
cost of the security acquired is increased by the premium paid for the call. If
the Fund exercises a put option, a gain or loss is realized from the sale of the
underlying security, and the proceeds from such a sale are decreased by the
premium originally paid. Written and purchased options are non-income producing
securities. The Funds did not enter into any option transactions during the
period ended March 31, 2006.
Notes to Financial Statements 79
Notes to Financial Statements (unaudited) (continued)
INCOME TAXES
The Funds intend to qualify as regulated investment companies under Subchapter M
of the Internal Revenue Code and, accordingly, the Funds will generally not be
subject to federal and state income taxes, or federal excise taxes to the extent
that they intend to make sufficient distributions of net investment income and
net realized capital gains.
Dividends received by shareholders of the Funds which are derived from foreign
source income and foreign taxes paid by the Funds are to be treated, to the
extent allowable under the Code, as if received and paid by the shareholders of
the Funds. Dividends paid by the Funds from net investment income and
distributions of net realized short-term gains are, for federal income tax
purposes, taxable as ordinary income to shareholders.
Dividends and distributions to shareholders are recorded by the Funds on the
ex-dividend/distribution date. The Funds distribute net realized capital gains,
if any, to shareholders at least annually, if not offset by capital loss
carryovers. Income distributions and capital gain distributions are determined
in accordance with income tax regulations, which may differ from accounting
principles generally accepted in the United States of America.
INVESTMENT INCOME
Dividend income is recorded on the ex-dividend date. Non-cash dividends included
in dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Certain dividends
from foreign securities will be recorded as soon as the Funds are informed of
the dividend if such information is obtained subsequent to the ex-dividend date.
Discounts and premiums on securities purchased are amortized over the life of
the respective securities.
INVESTMENT TRANSACTIONS
Security transactions are accounted for no later than one business day after
trade date. However, for financial reporting purposes security transactions are
accounted for on trade date. Gains and losses on securities sold are determined
on the basis of identified cost.
EXPENSES
Expenses which cannot be directly attributed to a specific fund in the Trust are
apportioned between all funds in the Trust based upon relative net assets.
80 Notes to Financial Statements
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY FEES
ICON Advisers, Inc. ("ICON") serves as the investment adviser to the Funds and
is responsible for managing the Funds' portfolios of securities. Effective
January 31, 2006, the Funds are obligated to pay ICON management fees computed
daily at an annual rate of 1.00% of the first $500 million of average daily net
assets, 0.95% on the next $250 million, 0.925% on the next $750 million, 0.90%
on the next $3.5 billion, and 0.875% on average daily net assets over $5
billion. Prior to that date, ICON received a monthly management fee that was
computed daily at an annual rate of 1.00% of the Funds' average daily net
assets.
TRANSFER AGENT, CUSTODY AND ACCOUNTING FEES
BISYS Fund Services Ohio, Inc. ("BISYS") is the Fund Accounting Agent for the
Funds. For its services, the Trust pays BISYS 0.03% on the first $1.75 billion
of average net assets, 0.0175% on the average net assets over $1.75 billion and
up to $5 billion, and 0.01% on average net assets in excess of $5 billion.
Brown Brothers Harriman ("BBH") is the custodian of the Trust's investments. For
domestic custody services, the Trust pays BBH 0.0065% on the first $50 million
of average net assets and 0.0050% on domestic assets above $50 million, plus
certain transaction charges. For foreign custody services, the Trust pays BBH
0.03% on foreign assets plus certain transaction charges.
Boston Financial Data Services, Inc. is the Trust's transfer agent. For these
services, the Trust pays an account fee of $13.25 per open account, $7.00 per
networked account, $1.80 per closed account, plus certain other transaction and
cusip charges.
ADMINISTRATIVE SERVICES
The Trust has entered into an administrative services agreement with ICON
pursuant to which ICON oversees the administration of the Trust's business and
affairs. As of January 31, 2006, this agreement provides for an annual fee of
0.05% on the Funds' first $1.5 billion of average daily net assets, 0.045% on
the next $1.5 billion of average daily net assets, 0.040% on the next $2 billion
of average daily net assets and 0.030% on average daily net assets over $5
billion. Prior to that date, this agreement provided for an annual fee to ICON
of 0.05% on the Funds' first $1.5 billion of average daily net assets and 0.045%
on average daily net assets in excess of $1.5 billion. The administrative
services agreement provides that ICON will not be liable for any error of
judgment, mistake of law, or any loss suffered by the Trust in connection with
matters to which the administrative services agreement relates, except for a
loss
Notes to Financial Statements 81
Notes to Financial Statements (unaudited) (continued)
resulting from willful misfeasance, bad faith or negligence by ICON in the
performance of its duties.
ICON has entered into a sub-administration agreement with BISYS pursuant to
which BISYS assists ICON with the administration and business affairs of the
Trust. For its services, ICON pays BISYS at an annual rate of 0.025% on the
first $1.75 billion of Trust assets and 0.015% on assets above $1.75 billion.
RELATED PARTIES
Certain Officers and Directors of ICON are also Officers and Trustees of the
Funds; however, such Officers and Trustees (with the exception of the Chief
Compliance Officer, "CCO") receive no compensation from the Funds. The CCO's
salary is paid 90% by the Funds and 10% by the Adviser. For the period ended
March 31, 2006, the total related amounts paid by the Trust under this
arrangement are included in Other Expenses on the Statements of Operations.
3. LINE OF CREDIT
The Funds entered into Lines of Credit agreements with BBH; the maximum
borrowing is limited to 25% of eligible securities held by the portfolio subject
to a maximum borrowing limit by the Trust of $115 million. Interest is charged
at LIBOR plus 2.00% which was 6.83% at March 31, 2006.
<Table>
<Caption>
AVERAGE BORROWING
(10/1/05 - 3/31/06)
- ----------------------------------------------------------------------------------
ICON Consumer Discretionary Fund** $1,827,583
ICON Energy Fund** 8,619,033
ICON Financial Fund** 2,248,947
ICON Healthcare Fund 15
ICON Industrials Fund** 1,371,632
ICON Information Technology Fund** 1,271,747
ICON Leisure and Consumer Staples Fund** 503,993
ICON Materials Fund** 619,774
ICON Telecommunication & Utilities Fund** 1,928,028
</Table>
** Fund had outstanding borrowings as of March 31, 2006.
4. FEDERAL INCOME TAX
Income and capital gain distributions are determined in accordance with income
tax regulations that may differ from accounting principles that are generally
accepted in the United States of America. These differences are due to differing
treatments for items such as net short-term gains, deferrals of wash losses,
foreign currency transactions, net investment losses, and capital loss
carryovers.
The tax components of capital shown in the following tables represent losses or
deductions the Funds may be able to offset against income and gains
82 Notes to Financial Statements
recognized in future years and post October loss deferrals. The accumulated
losses noted in the following tables represent net capital loss carryforwards as
of September 30, 2005 that may be available to offset future realized capital
gains and thereby reduce future taxable income distributions. The ICON
Information Technology Fund has a capital loss carryforward of $54,485,753,
which expires in 2011.
During the year ended September 30, 2005, the following capital loss
carryforwards were used:
<Table>
ICON Consumer Discretionary Fund $ 6,093,146
ICON Energy Fund 7,535,248
ICON Industrials Fund 24,281,548
ICON Information Technology Fund 9,949,705
ICON Materials Fund 19,740,720
ICON Telecommunication & Utilities Fund 4,843,948
</Table>
The aggregate gross unrealized appreciation and depreciation of securities held
by the Funds and the total cost of securities for federal tax purposes as of
March 31, 2006 were as follows:
<Table>
<Caption>
UNREALIZED UNREALIZED NET APPRECIATION
FUND COST APPRECIATION (DEPRECIATION) (DEPRECIATION)
- -----------------------------------------------------------------------------------------
ICON Consumer
Discretionary Fund $138,980,627 $ 18,225,711 $ (1,566,505) $ 16,659,206
ICON Energy Fund 650,853,910 335,902,416 (5,908,427) 329,993,989
ICON Financial Fund 206,778,303 36,186,333 (2,116,476) 34,069,857
ICON Healthcare Fund 618,516,079 161,399,392 (10,634,799) 150,764,593
ICON Industrials Fund 195,562,584 65,165,985 (456,188) 64,709,797
ICON Information
Technology Fund 272,219,833 53,001,383 (3,569,892) 49,431,491
ICON Leisure and
Consumer Staples Fund 35,470,314 5,032,086 (374,156) 4,657,930
ICON Materials Fund 135,191,723 33,523,597 (1,467,316) 32,056,281
ICON Telecommunication &
Utilities Fund 58,635,904 10,081,506 (610,691) 9,470,815
</Table>
Notes to Financial Statements 83
Other Information (unaudited)
PORTFOLIO HOLDINGS
A list of each ICON Fund's Top 10 holdings is available at www.iconadvisers.com
on or about 15 days following each month end. Each ICON Fund also files a
complete schedule of portfolio holdings for the first and third quarters of its
fiscal year with the SEC on Form N-Q. The ICON Funds' Forms N-Q are available at
www.sec.gov or may be reviewed and copied at the Commission's Public Reference
Room in Washington, DC. Information about the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
PROXY VOTING
A description of the policies and procedures the ICON Funds use to vote proxies
is available at www.iconadvisers.com; without charge upon request by calling
1-800-764-0442; or on the SEC's website at www.sec.gov.
Information about how the ICON Funds voted proxies related to each Fund's
portfolio securities during the 12-month period ended June 30 is available at
www.iconadvisers.com or on the SEC's website at www.sec.gov.
FOR MORE INFORMATION
This report is for the general information of the Funds' shareholders and is not
authorized for distribution to prospective investors unless preceded or
accompanied by a current prospectus. You may obtain a copy of the prospectus,
which contains information about the investment objectives, risks, charges,
expenses, and share classes of each ICON Fund, by visiting www.iconadvisers.com
or by calling 1-800-764-0442. Please read the prospectus carefully before
investing.
ICON Distributors, Inc., Distributor
84 Other Information
[ICON FUNDS LOGO]
<Table>
For more information about the ICON Funds, contact us:
By Telephone 1-800-764-0442
By Mail ICON Funds
P.O. Box 55452
Boston, MA 02205-8165
In Person ICON Funds
5299 DTC Boulevard, 12(th) Floor
Greenwood Village, CO 80111
On the Internet www.iconadvisers.com
By E-Mail info@iconadvisers.com
</Table>
[ICON FUNDS LOGO]
1-800-764-0442
www.iconadvisers.com
I-147-SEC
ITEM 2. CODE OF ETHICS.
Disclose whether, as of the end of the period covered by the report, the
registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer, principal
accounting officer or controller, or persons performing similar functions,
regardless of whether these individuals are employed by the registrant or a
third party. If the registrant has not adopted such a code of ethics,
explain why it has not done so.
NOT APPLICABLE - ONLY FOR ANNUAL REPORTS.
The registrant must briefly describe the nature of any amendment, during
the period covered by the report, to a provision of its code of ethics that
applies to the registrant's principal executive officer, principal
financial officer, principal accounting officer or controller, or persons
performing similar functions, regardless of whether these individuals are
employed by the registrant or a third party, and that relates to any
element of the code of ethics definition enumerated in paragraph (b) of
this Item. The registrant must file a copy of any such amendment as an
exhibit pursuant to Item 12(a)(1), unless the registrant has elected to
satisfy paragraph (f) of this Item by posting its code of ethics on its
website pursuant to paragraph (f)(2) of this Item, or by undertaking to
provide its code of ethics to any person without charge, upon request,
pursuant to paragraph (f)(3) of this Item.
If the registrant has, during the period covered by the report, granted a
waiver, including an implicit waiver, from a provision of the code of
ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions, regardless of whether these
individuals are employed by the registrant or a third party, that relates
to one or more items set forth in paragraph (b) of this Item, the
registrant must briefly describe the nature of the waiver, the name of the
person to whom the waiver was granted, and the date of the waiver.
NOT APPLICABLE - ONLY FOR ANNUAL REPORTS.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a) (1) Disclose that the registrant's board of directors has
determined that the registrant either:
(i) Has at least one audit committee financial expert
serving on its audit committee; or
(ii) Does not have an audit committee financial expert
serving on its audit committee.
(2) If the registrant provides the disclosure required by
paragraph (a)(1)(i) of this Item, it must disclose the name of
the audit committee financial expert and whether that person is
"independent." In order to be considered "independent" for
purposes of this Item, a member of an audit committee may not,
other than in his or her capacity as a member of the audit
committee, the board of directors, or any other board committee:
(i) Accept directly or indirectly any consulting, advisory,
or other compensatory fee from the issuer; or
(ii) Be an "interested person" of the investment company as
defined in Section 2(a)(19) of the Act (15 U.S.C. 80a-
2(a)(19)).
(3) If the registrant provides the disclosure required by
paragraph (a)(1)(ii) of this Item, it must explain why it does
not have an audit committee financial expert.
NOT APPLICABLE - ONLY FOR ANNUAL REPORTS.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Disclose, under the caption Audit Fees, the aggregate fees billed
for each of the last two fiscal years for professional services rendered by the
principal accountant for the audit of the registrant's annual financial
statements or services that are normally provided by the accountant in
connection with statutory and regulatory filings or engagements for those fiscal
years.
(b) Disclose, under the caption Audit-Related Fees, the aggregate fees
billed in each of the last two fiscal years for assurance and related services
by the principal accountant that are reasonably related to the performance of
the audit of the registrant's financial statements and are not reported under
paragraph (a) of this Item. Registrants shall describe the nature of the
services comprising the fees disclosed under this category.
(c) Disclose, under the caption Tax Fees, the aggregate fees billed in
each of the last two fiscal years for professional services rendered by the
principal accountant for tax compliance, tax advice, and tax planning.
Registrants shall describe the nature of the services comprising the fees
disclosed under this category.
(d) Disclose, under the caption All Other Fees, the aggregate fees
billed in each of the last two fiscal years for products and services provided
by the principal accountant, other than the services reported in paragraphs (a)
through (c) of this Item. Registrants shall describe the nature of the services
comprising the fees disclosed under this category.
(e) (1) Disclose the audit committee's pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(2) Disclose the percentage of services described in each of
paragraphs (b) through (d) of this Item that were approved by the audit
committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) If greater than 50 percent, disclose the percentage of hours
expended on the principal accountant's engagement to audit the registrant's
financial statements for the most recent fiscal year that were attributed to
work performed by persons other than the principal accountant's full-time,
permanent employees.
(g) Disclose the aggregate non-audit fees billed by the registrant's
accountant for services rendered to the registrant, and rendered to the
registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
(h) Disclose whether the registrant's audit committee of the board of
directors has considered whether the provision of nonaudit services that were
rendered to the registrant's investment adviser (not including any subadviser
whose role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling, controlled
by, or under common control with the investment adviser that provides ongoing
services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the
principal accountant's independence.
NOT APPLICABLE - ONLY FOR ANNUAL REPORTS.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
(a) If the registrant is a listed issuer as defined in Rule 10A-3
under the Exchange Act (17CFR 240.10A-3), state whether or not
the registrant has a separately-designated standing audit
committee established in accordance with Section 3(a)(58)(A) of
the Exchange Act (15 U.S.C. 78c(a)(58)(A)). If the registrant has
such a committee, however designated, identify each committee
member. If the entire board of directors is acting as the
registrant's audit committee as specified in Section 3(a)(58)(B)
of the Exchange Act (15 U.S.C. 78c(a)(58)(B)), so state.
(b) If applicable, provide the disclosure required by Rule 10A-3(d)
under the Exchange Act (17CFR 240.10A-3(d)) regarding an
exemption from the listing standards for all audit committees.
(c)
NOT APPLICABLE.
ITEM 6. SCHEDULE OF INVESTMENTS.
File Schedule I - Investments in securities of unaffiliated issuers as of the
close of the reporting period as set forth in Section 210.12-12 of Regulation
S-X, unless the schedule is included as part of the report to shareholders filed
under Item 1 of this Form.
NOT APPLICABLE.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
A closed-end management investment company that is filing an annual
report on this Form N-CSR must, unless it invests exclusively in non-voting
securities, describe the policies and procedures that it uses to determine how
to vote proxies relating to portfolio securities, including the procedures that
the company uses when a vote presents a conflict between the interests of its
shareholders, on the one hand, and those of the company's investment adviser;
principal underwriter; or any affiliated person (as defined in Section 2(a)(3)
of the Investment Company Act of 1940 (15 U.S.C. 80a-2(a)(3)) and the rules
thereunder) of the company, its investment adviser, or its principal
underwriter, on the other. Include any policies and procedures of the company's
investment adviser, or any other third party, that the company uses, or that are
used on the company's behalf, to determine how to vote proxies relating to
portfolio securities.
NOT APPLICABLE.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
If the registrant is a closed-end management investment company that is filing
an annual report on this Form N-CSR, provide the information specified in
paragraphs (a) and (b) of this Item with respect to portfolio managers.
NOT APPLICABLE.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
If the registrant is a closed-end management investment company, provide the
information specified in paragraph (b) of this Item with respect to any purchase
made by or on behalf of the registrant or any "affiliated purchaser," as defined
in Rule 10b-18(a)(3) under the Exchange Act (17 CFR 240.10b-18(a)(3)), of shares
or other units of any class of the registrant's equity securities that is
registered by the registrant pursuant to Section 12 of the Exchange Act (15
U.S.C. 781).
NOT APPLICABLE.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Describe any material changes to the procedures by which shareholders may
recommend nominees to the registrant's board of directors, where those changes
were implemented after the registrant last provided disclosure in response to
the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101), or
this Item.
NOT APPLICABLE.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Disclose the conclusions of the registrant's principal executive
and principal financial officers, or persons performing similar functions,
regarding the effectiveness of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))) as
of a date within 90 days of the filing date of the report that includes the
disclosure required by this paragraph, based on the evaluation of these controls
and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a-3(b)) and
Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or
240.15d-15(b)).
THE REGISTRANT'S PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER
HAVE CONCLUDED, BASED ON THEIR EVALUATION OF THE REGISTRANT'S DISCLOSURE
CONTROLS AND PROCEDURES AS CONDUCTED WITHIN 90 DAYS OF THE FILING DATE OF THIS
REPORT, THAT THESE DISCLOSURE CONTROLS AND PROCEDURES ARE ADEQUATELY DESIGNED
AND ARE OPERATING EFFECTIVELY TO ENSURE THAT INFORMATION REQUIRED TO BE
DISCLOSED BY THE REGISTRANT ON FORM N-CSR IS RECORDED, PROCESSED, SUMMARIZED AND
REPORTED WITHIN THE TIME PERIODS SPECIFIED IN THE SECURITIES AND EXCHANGE
COMMISSION'S RULES AND FORMS.
(b) Disclose any change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
270.30a-3(d)) that occurred during the second fiscal quarter of the period
covered by this report that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting.
THERE WERE NO CHANGES IN THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL
REPORTING THAT OCCURRED DURING THE SECOND FISCAL QUARTER OF THE PERIOD COVERED
BY THIS REPORT THAT HAVE MATERIALLY AFFECTED OR ARE REASONABLY LIKELY TO
MATERIALLY AFFECT, THE REGISTRANT'S INTERNAL CONTROL OVER FINANCIAL REPORTING.
ITEM 12. EXHIBITS.
(a) File the exhibits listed below as part of this Form. Letter or
number the exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject
of the disclosure required by Item 2, to the extent that the registrant intends
to satisfy the Item 2 requirements through filing of an exhibit. NOT APPLICABLE
- - ONLY EFFECTIVE FOR ANNUAL REPORTS.
(a)(2) A separate certification for each principal executive officer
and principal financial officer of the registrant as required by Rule 30a-2(a)
under the Act (17 CFR 270.30a-2). CERTIFICATIONS PURSUANT TO RULE 30A-2(A) ARE
ATTACHED HERETO.
(a)(3) Any written solicitation to purchase securities under Rule
23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered
by the report by or on behalf of the registrant to 10 or more persons. NOT
APPLICABLE.
(b) If the report is filed under Section 13(a) or 15(d) of the
Exchange Act, provide the certifications required by rule 30a-2(b) under the Act
as an exhibit. A certification furnished pursuant to this paragraph will not be
deemed "filed" for purposes of Section 18 of the Exchange Act, or otherwise
subject to the liability of that section. Such certification will not be deemed
to be incorporated by reference into any filing under the Securities Act of 1933
or the Exchange Act, except to the extent that the registrant incorporates it by
reference. CERTIFICATIONS PURSUANT TO RULE 30A-2(B) ARE FURNISHED HEREWITH.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) ICON Funds
By (Signature and Title)* /s/ Craig T. Callahan
------------------------------------------------------
Craig T. Callahan, President and Chief Executive
Officer (Principal Executive Officer)
Date May 31, 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/ Craig T. Callahan
------------------------------------------------------
Craig T. Callahan, President and Chief Executive
Officer (Principal Executive Officer)
Date May 31, 2006
By (Signature and Title)* /s/ Erik L. Jonson
------------------------------------------------------
Erik L. Jonson, Vice President, Chief Financial
Officer and Treasurer (Principal Financial Officer and
Principal Accounting Officer)
Date May 31, 2006