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OMB APPROVAL
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Expires: September 30, 2007
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hours per response: 19.4
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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 811-05646
----------------------------------------
New Century Portfolios
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
40 William Street, Suite 100 Wellesley, Massachusetts 02481
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Nicole M. Tremblay, Esq.
Weston Financial Group, Inc. 40 William Street, Suite 100 Wellesley, MA 02481
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (781) 235-7055
----------------------
Date of fiscal year end: October 31, 2005
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Date of reporting period: October 31, 2005
--------------------------------------
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
================================================================================
[GRAPHIC OMITTED]
NEW CENTURY
PORTFOLIOS
NEW CENTURY CAPITAL
NEW CENTURY BALANCED
NEW CENTURY AGGRESSIVE
NEW CENTURY INTERNATIONAL
NEW CENTURY ALTERNATIVE STRATEGIES
ANNUAL REPORT
YEAR ENDED OCTOBER 31, 2005
40 William Street, Suite 100, Wellesley MA 02481 781-239-0445 888-639-0102 Fax 781-237-1635
================================================================================
CONTENTS
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER 1
PERFORMANCE CHARTS 2-4
PORTFOLIO INFORMATION 5-9
New Century Portfolios
Statements of Assets and Liabilities 10
Statements of Operations 11
Statements of Changes in Net Assets12-14
Financial Highlights 15-19
Portfolios of Investments 20-27
Notes to Financial Statements 28-35
Report of Independent Registered Public Accounting Firm 36
Board of Trustees and Officers 37-38
About Your Portfolio's Expenses 39-41
Federal Tax Information 41
Trustees Approval of Investment Advisory Agreements 42-44
Special Meeting of the Shareholders 44
LETTER TO SHAREHOLDERS DECEMBER 2005
================================================================================
Dear Fellow Shareholders:
I am pleased to present our 16th Annual Report.
Although the U.S. equity markets, as measured by the S&P 500(R) Composite Index,
posted a gain of 8.72% during the twelve-month period ended October 31, 2005,
7.67% of that gain occurred during the last two months of 2004. During 2005,
climbing energy prices, natural disasters, rising interest rates, inflation, and
a potential bubble in the housing market caused investors to remain on the
sidelines.
During the twelve-month period ended October 31, 2005, the New Century Capital
Portfolio increased its exposure to the international sector, while reducing
positions in the small cap and speculative growth sector. The New Century
Capital Portfolio gained 12.41% as compared to the S&P 500(R) Composite Index
which gained 8.72%.
The New Century Balanced Portfolio also increased its allocation to the
international sector both in equities and fixed income while reducing its
allocation to the high-yield and traditional growth sector. The Portfolio has
continued to maintain its 65%/35% allocation between equities and fixed income.
During the twelve-month period ended October 31, 2005, the New Century Balanced
Portfolio gained 8.51%, as compared to the S&P 500(R) Composite Index which
gained 8.72% and the Lehman Brothers Government/Credit Bond Index which gained
0.83%.
In the last twelve months, New Century Aggressive reduced its exposure to the
small cap sector while increasing positions in energy, natural resources, and
emerging markets. These sectors continued to generate positive momentum relative
to the technology and biotech sectors. During the twelve-month period ended
October 31, 2005, the New Century Aggressive Portfolio posted a gain of 19.45%
while the NASDAQ Index increased by 7.36%.
The New Century International Portfolio increased its positions in Emerging
Markets, the Pacific-Rim and the Americas (ex-US) while reducing its positions
in Europe and the diversified sector. During the twelve-month period ended
October 31, 2005, the New Century International Portfolio gained 23.70%. The
international equity markets, as measured by the MSCI EAFE Index, increased
18.09%. The New Century Alternative Strategies Portfolio maintained diversified
positions in eleven investment strategies, reducing its exposure to the
convertible arbitrage and merger arbitrage categories while increasing exposure
to long/short strategies. The New Century Alternative Strategies Portfolio had a
total return of 9.12% for the twelve-month period ended October 31, 2005, as
compared to the S&P 500(R) Composite Index which gained 8.72% and the Lehman
Brothers Government/Credit Bond Index which gained 0.83%. While future
performance is always unpredictable, we are confident that New Century's
investment philosophy - diversification, risk assessment and long-term focus -
will maximize risk-adjusted returns.
I am pleased to report that the acquisition between Weston Financial Group, Inc.
and Washington Trust Bancorp, Inc. was successfully completed on August 31,
2005. We look forward to growing the new relationship.
New Century is committed to its shareholders and appreciates your selecting New
Century as part of your long-term investment strategy.
Sincerely,
/s/ Wayne
Wayne M. Grzecki
President
1
PERFORMANCE CHARTS
================================================================================
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE NEW CENTURY CAPITAL PORTFOLIO AND THE S&P 500(R) COMPOSITE INDEX
[GRAPHIC OMITTED]
S&P 500(R) Composite Index New Century Capital Portfolio
-------------------------- -----------------------------
Ending Ending
Date Balance Date Balance
------ --------- ------ ---------
10/31/1995 10,000 10/31/1995 10,000
10/31/1996 12,410 10/31/1996 11,491
10/31/1997 16,395 10/31/1997 14,619
10/31/1998 20,000 10/31/1998 15,784
10/31/1999 25,134 10/31/1999 20,353
10/31/2000 26,665 10/31/2000 23,389
10/31/2001 20,025 10/31/2001 16,896
10/31/2002 17,000 10/31/2002 14,243
10/31/2003 20,533 10/31/2003 17,447
10/31/2004 22,467 10/31/2004 18,887
10/31/2005 24,426 10/31/2005 21,230
- ----------------------------------
NEW CENTURY CAPITAL PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR 5 YEARS 10 YEARS
12.41% (1.92%) 7.82%
- ----------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE NEW CENTURY BALANCED PORTFOLIO, S&P 500(R) COMPOSITE INDEX AND
LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX
[GRAPHIC OMITTED]
NEW CENTURY
S&P 500(R) COMPOSITE INDEX BALANCED PORTFOLIO LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX
- -------------------------- ------------------ ----------------------------------------------------
ENDING ENDING ENDING
DATE BALANCE DATE BALANCE DATE BALANCE
- -------------------------- ------------------------ -------------------------
10/31/1995 10,000 10/31/1995 10,000 10/31/1995 10,000
10/31/1996 12,410 10/31/1996 11,326 10/31/1996 10,581
10/31/1997 16,395 10/31/1997 13,550 10/31/1997 11,374
10/31/1998 20,000 10/31/1998 14,494 10/31/1998 12,411
10/31/1999 25,134 10/31/1999 16,706 10/31/1999 12,534
10/31/2000 26,665 10/31/2000 18,420 10/31/2000 13,343
10/31/2001 20,025 10/31/2001 16,343 10/31/2001 15,245
10/31/2002 17,000 10/31/2002 14,369 10/31/2002 16,146
10/31/2003 20,533 10/31/2003 17,075 10/31/2003 17,022
10/31/2004 22,467 10/31/2004 18,398 10/31/2004 17,759
10/31/2005 24,426 10/31/2005 19,964 10/31/2005 17,804
- ----------------------------------
NEW CENTURY BALANCED PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR 5 YEARS 10 YEARS
8.51% 1.62% 7.16%
- ----------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
(a) The total returns shown do not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or the redemption of
Portfolio shares.
2
PERFORMANCE CHARTS (CONTINUED)
================================================================================
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE NEW CENTURY AGGRESSIVE PORTFOLIO AND THE NASDAQ COMPOSITE INDEX
[GRAPHIC OMITTED]
NASDAQ COMPOSITE INDEX NEW CENTURY AGGRESSIVE PORTFOLIO
ENDING ENDING
DATE BALANCE DATE BALANCE
----------- --------- --------- ---------
10/31/2000 10,000 10/31/2000 10,000
10/31/2001 5,030 10/31/2001 7,370
10/31/2002 3,972 10/31/2002 5,470
10/31/2003 5,798 10/31/2003 6,950
10/31/2004 5,954 10/31/2004 7,300
10/31/2005 6,436 10/31/2005 8,720
- ----------------------------------
NEW CENTURY AGGRESSIVE PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR SINCE INCEPTION*
19.45% (2.70%)
- ----------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE NEW CENTURY INTERNATIONAL PORTFOLIO AND THE MSCI EAFE INDEX
[GRAPHIC OMITTED]
NEW CENTURY
MSCI EAFE INDEX INTERNATIONAL PORTFOLIO
--------------- -----------------------
ENDING ENDING
DATE BALANCE DATE BALANCE
----------- --------- ----------- ---------
10/31/2000 10,000 10/31/2000 10,000
10/31/2001 7,532 10/31/2001 7,410
10/31/2002 6,559 10/31/2002 6,533
10/31/2003 8,367 10/31/2003 8,697
10/31/2004 9,979 10/31/2004 10,089
10/31/2005 11,787 10/31/2005 12,481
- -------------------------------------
NEW CENTURY INTERNATIONAL PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR SINCE INCEPTION*
23.70% 4.53%
- -------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
* Initial public offering of shares was November 1, 2000.
(a) The total returns shown do not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or the redemption of
Portfolio shares.
3
PERFORMANCE CHARTS (CONTINUED)
================================================================================
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO, S&P 500(R) COMPOSITE INDEX
AND LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX
[GRAPHIC OMITTED]
NEW CENTURY ALTERNATIVE
S&P 500(R) COMPOSITE INDEX STRATEGIES PORTFOLIO LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CREDIT INDEX
- -------------------------- -------------------- ----------------------------------------------------
ENDING ENDING ENDING
DATE BALANCE DATE BALANCE DATE BALANCE
---- ------- ---- ------- ---- -------
5/1/2002 10,000 5/1/2002 10,000 5/1/2002 10,000
5/31/2002 9,838 5/31/2002 10,000 5/31/2002 10,087
6/30/2002 9,137 6/30/2002 9,720 6/30/2002 10,174
7/31/2002 8,425 7/31/2002 9,290 7/31/2002 10,294
8/31/2002 8,480 8/31/2002 9,340 8/31/2002 10,447
9/30/2002 7,559 9/30/2002 9,110 9/30/2002 10,634
10/31/2002 8,224 10/31/2002 9,120 10/31/2002 10,593
11/30/2002 8,708 11/30/2002 9,330 11/30/2002 10,583
12/31/2002 8,196 12/31/2002 9,325 12/31/2002 10,814
1/31/2003 7,982 1/31/2003 9,285 1/31/2003 10,813
2/28/2003 7,862 2/28/2003 9,264 2/28/2003 10,965
3/31/2003 7,938 3/31/2003 9,295 3/31/2003 10,976
4/30/2003 8,592 4/30/2003 9,618 4/30/2003 11,060
5/31/2003 9,045 5/31/2003 9,982 5/31/2003 11,282
6/30/2003 9,160 6/30/2003 10,083 6/30/2003 11,274
7/31/2003 9,322 7/31/2003 10,194 7/31/2003 10,967
8/31/2003 9,503 8/31/2003 10,376 8/31/2003 10,994
9/30/2003 9,403 9/30/2003 10,477 9/30/2003 11,272
10/31/2003 9,934 10/31/2003 10,780 10/31/2003 11,166
11/30/2003 10,022 11/30/2003 11,002 11/30/2003 11,181
12/31/2003 10,547 12/31/2003 11,270 12/31/2003 11,279
1/31/2004 10,741 1/31/2004 11,383 1/31/2004 11,353
2/29/2004 10,890 2/29/2004 11,557 2/29/2004 11,469
3/31/2004 10,726 3/31/2004 11,629 3/31/2004 11,558
4/30/2004 10,558 4/30/2004 11,260 4/30/2004 11,284
5/31/2004 10,703 5/31/2004 11,342 5/31/2004 11,234
6/30/2004 10,911 6/30/2004 11,455 6/30/2004 11,267
7/31/2004 10,550 7/31/2004 11,342 7/31/2004 11,362
8/31/2004 10,592 8/31/2004 11,414 8/31/2004 11,552
9/30/2004 10,707 9/30/2004 11,639 9/30/2004 11,571
10/31/2004 10,871 10/31/2004 11,762 10/31/2004 11,649
11/30/2004 11,310 11/30/2004 12,111 11/30/2004 11,543
12/31/2004 11,695 12/31/2004 12,290 12/31/2004 11,621
1/31/2005 11,410 1/31/2005 12,119 1/31/2005 11,644
2/28/2005 11,650 2/28/2005 12,429 2/28/2005 11,579
3/31/2005 11,444 3/31/2005 12,322 3/31/2005 11,519
4/30/2005 11,227 4/30/2005 12,130 4/30/2005 11,651
5/31/2005 11,584 5/31/2005 12,290 5/31/2005 11,755
6/30/2005 11,601 6/30/2005 12,482 6/30/2005 11,805
7/31/2005 12,032 7/31/2005 12,793 7/31/2005 11,707
8/31/2005 11,922 8/31/2005 12,889 8/31/2005 11,844
9/30/2005 12,019 9/30/2005 13,114 9/30/2005 11,743
10/31/2005 11,818 10/31/2005 12,836 10/31/2005 11,679
- ----------------------------------------------
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR SINCE INCEPTION*
9.12% 7.39%
- ----------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
* Initial public offering of shares was May 1, 2002.
(a) The total returns shown do not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or the redemption of
Portfolio shares.
4
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2005 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Growth Funds - 34.4%
Growth and Income Funds - 34.0%
[GRAPHIC OMITTED] Small Company Funds - 16.9%
Foreign Stock Funds - 14.1%
Cash Equivalents - 0.6%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------- ---------------
Hotchkis & Wiley Large Cap Value - Class A 8.0%
iShares Dow Jones Select Dividend Index 7.6%
American Growth Fund of America - Class A 6.9%
Calamos Growth - Class A 6.8%
William Blair Small Cap Growth - Class I 6.6%
Marsico 21st Century 6.3%
Fidelity Capital Appreciation 5.3%
iShares MSCI Emerging Markets Index 4.7%
iShares S&P MidCap 400/BARRA Value Index 4.5%
Goldman Sachs Growth Opportunities - Class A 4.2%
5
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2005 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Growth and Income Funds - 33.0%
High Yield Bond Funds - 12.0%
Growth Funds - 11.9%
Small Company Funds - 10.9%
Foreign Stock Funds - 9.3%
[GRAPHIC OMITTED] Convertible Security Funds - 5.2%
Corporate Bond Funds - 5.0%
Worldwide Bond Funds - 4.5%
Government Bond Funds - 4.0%
High Quality Bond Funds - 3.0%
Emerging Markets Funds - 0.7%
Cash Equivalents - 0.5%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------- ---------------
Hotchkis & Wiley Large Cap Value - Class A 8.0%
iShares Dow Jones Select Dividend Index 7.2%
MainStay High Yield Corporate Bond - Class A 6.0%
Fidelity Advisor High Income Advantage - Class I 6.0%
iShares S&P 500 Index 5.9%
Loomis Sayles Bond - Institutional Class 5.0%
Dodge & Cox Stock 4.7%
iShares MSCI EAFE Index 4.2%
American Century Target Maturities
Trust Series 2015 - Investor Class 4.0%
William Blair Small Cap Growth Fund - Class I 3.5%
6
NEW CENTURY AGGRESSIVE PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2005 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Sector Funds - 67.2%
Mid-Cap Funds - 19.2%
[GRAPHIC OMITTED] Small-Cap Funds - 7.5%
Large-Cap Funds - 5.6%
Cash Equivalents - 0.5%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------- ---------------
iShares Dow Jones U.S. Energy Sector Index 16.1%
iShares Goldman Sachs Natural Resources Index 10.3%
iShares MSCI Emerging Markets Index 10.0%
Technology Select Sector SPDR 9.4%
iShares Nasdaq Biotechnology Index 8.5%
S&P MidCap 400 Depositary Receipts 7.4%
Calamos Growth - Class A 7.2%
Fidelity Select Medical Delivery 6.1%
Fidelity Capital Appreciation 5.6%
iShares Goldman Sachs Networking Index 4.8%
7
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2005 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Europe Funds - 25.8%
Asia/Pacific Funds - 22.4%
Diversified Funds - 20.6%
[GRAPHIC OMITTED] Americas Funds - 18.8%
Emerging Markets Funds - 11.8%
Cash Equivalents - 0.6%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------- ---------------
iShares S&P Latin American 40 Index 7.8%
iShares MSCI Austria Index 7.5%
Dodge & Cox International Stock 6.3%
T. Rowe Price Emerging Europe & Mediterranean 6.1%
Ivy European Opportunities - Class A 6.0%
Tocqueville International Value (The) 5.3%
iShares MSCI Australia Index 4.6%
Fidelity Canada 4.4%
Lazard International Small Cap - Investor Shares 4.3%
Matthews Pacific Tiger - Class I 4.3%
8
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2005 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Long/Short Equity Funds - 15.4%
Merger Arbitrage Funds - 13.7%
Global Macro Funds - 12.5%
Asset Allocation Funds - 12.0%
Natural Resources Funds - 9.6%
Options/Hedged Funds - 7.0%
[GRAPHIC OMITTED] High Yield Funds - 6.9%
Real Estate Investment Trust Funds - 6.8%
Deep Value/Distressed Securities Funds - 6.2%
Convertible Arbitrage Funds - 4.3%
Market Neutral Funds - 3.2%
Common Stocks - 0.2%
Cash Equivalents - 2.2%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------- ---------------
First Eagle Global - Class A 7.2%
Hussman Strategic Growth 5.4%
Gateway 5.0%
Merger Fund (The) 4.9%
Enterprise Mergers and Acquisitions - Class A 4.5%
Calamos Market Neutral - A Shares 4.3%
PIMCO Commodity Real Return Strategy - Class A 3.8%
Schwab Hedged Equity 3.6%
FPA Crescent - Class I 3.6%
Third Avenue Real Estate Value 3.5%
9
NEW CENTURY PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2005
==================================================================================================================================
NEW CENTURY
NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE
CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities:
At acquisition cost ....................... $ 88,457,119 $ 66,360,119 $ 5,643,991 $ 34,456,979 $ 68,202,970
============= ============= ============= ============= =============
At value (Note 1A) ........................ $ 110,694,961 $ 77,216,138 $ 7,106,554 $ 45,073,119 $ 76,684,466
Dividends receivable ........................ 962 1,296 482 1,354 12,630
Receivable for capital shares sold .......... 32,919 1,075 126 475 15,450
Other assets ................................ 3,086 2,702 168 1,048 2,726
------------- ------------- ------------- ------------- -------------
TOTAL ASSETS .............................. 110,731,928 77,221,211 7,107,330 45,075,996 76,715,272
------------- ------------- ------------- ------------- -------------
LIABILITIES
Payable to Advisor (Note 2) ................. 94,795 67,522 949 41,006 46,332
Payable to Distributor (Note 3) ............. 24,416 14,303 1,806 12,087 --
Payable for investment securities purchased . -- -- 207,029 -- 100,000
Payable for capital shares redeemed ......... 13,320 -- -- -- 1,000
Other accrued expenses and liabilities ...... 21,759 11,817 6,354 9,244 7,563
------------- ------------- ------------- ------------- -------------
TOTAL LIABILITIES ......................... 154,290 93,642 216,138 62,337 154,895
------------- ------------- ------------- ------------- -------------
NET ASSETS .................................... $ 110,577,638 $ 77,127,569 $ 6,891,192 $ 45,013,659 $ 76,560,377
============= ============= ============= ============= =============
Net assets consist of:
Paid-in capital ............................. $ 97,325,260 $ 69,186,159 $ 6,742,847 $ 34,015,721 $ 67,473,591
Undistributed net investment income ......... -- 188,771 -- -- 181,141
Accumulated net realized gains (losses)
on investments ............................ (8,985,464) (3,103,380) (1,314,218) 381,798 424,149
Unrealized appreciation of investments ...... 22,237,842 10,856,019 1,462,563 10,616,140 8,481,496
------------- ------------- ------------- ------------- -------------
Net assets .................................... $ 110,577,638 $ 77,127,569 $ 6,891,192 $ 45,013,659 $ 76,560,377
============= ============= ============= ============= =============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) .............................. 7,354,043 5,863,082 790,526 3,713,030 6,384,502
============= ============= ============= ============= =============
Net asset value, offering price and
redemption price per share (a) .............. $ 15.04 $ 13.15 $ 8.72 $ 12.12 $ 11.99
============= ============= ============= ============= =============
(a) Redemption price may differ from the net asset value per share depending
upon the length of time held (Note 1B).
See accompanying notes to financial statements.
10
NEW CENTURY PORTFOLIOS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2005
==================================================================================================================================
NEW CENTURY
NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE
CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends ................................... $ 857,475 $ 1,911,463 $ 44,306 $ 295,494 $ 1,406,622
------------- ------------- ------------- ------------- -------------
EXPENSES
Investment advisory fees (Note 2) ........... 1,071,620 762,431 58,707 355,593 495,771
Distribution costs (Note 3) ................. 179,526 111,142 13,575 77,284 42,378
Accounting fees ............................. 40,890 37,700 30,678 33,585 36,602
Administration fees (Note 2) ................ 46,656 34,395 8,369 19,304 30,516
Legal and audit fees ........................ 50,009 34,944 2,630 15,752 29,415
Transfer agent fees ......................... 21,000 21,000 21,000 21,000 21,000
Custody fees ................................ 22,802 17,392 4,515 11,160 17,338
Trustees' fees and expenses (Note 2) ........ 14,904 10,390 788 5,075 9,343
Postage and supplies ........................ 7,348 6,482 4,063 4,480 5,187
Insurance expense ........................... 6,086 4,202 308 1,533 3,060
Other expenses .............................. 24,641 15,570 5,581 7,421 11,965
------------- ------------- ------------- ------------- -------------
Total expenses ............................ 1,485,482 1,055,648 150,214 552,187 702,575
Less fees waived and/or expenses
reimbursed by the Advisor (Note 2) ........ -- -- (62,153) (18,797) --
------------- ------------- ------------- ------------- -------------
Net expenses .............................. 1,485,482 1,055,648 88,061 533,390 702,575
------------- ------------- ------------- ------------- -------------
NET INVESTMENT INCOME (LOSS) .................. (628,007) 855,815 (43,755) (237,896) 704,047
------------- ------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS
ON INVESTMENTS
Net realized gains on investments ........... 2,892,881 1,751,541 154,869 84,860 389,570
Capital gain distributions from regulated
investment companies ...................... 1,955,220 1,128,719 76,023 320,739 1,135,285
Net change in unrealized appreciation/
(depreciation) on investments ............. 8,395,507 2,492,528 813,977 6,757,089 3,303,993
------------- ------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAINS ON INVESTMENTS ........................ 13,243,608 5,372,788 1,044,869 7,162,688 4,828,848
------------- ------------- ------------- ------------- -------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS ...................... $ 12,615,601 $ 6,228,603 $ 1,001,114 $ 6,924,792 $ 5,532,895
============= ============= ============= ============= =============
See accompanying notes to financial statements.
11
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
======================================================================================================================
NEW CENTURY NEW CENTURY
CAPITAL PORTFOLIO BALANCED PORTFOLIO
------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) ..................... $ (628,007) $ (917,292) $ 855,815 $ 651,177
Net realized gains from
security transactions .......................... 2,892,881 5,347,494 1,751,541 1,597,601
Capital gain distributions from regulated
investment companies ........................... 1,955,220 388,246 1,128,719 280,790
Net change in unrealized appreciation/
(depreciation) on investments ................... 8,395,507 3,016,709 2,492,528 2,916,387
------------- ------------- ------------- -------------
Net increase in net assets from operations ......... 12,615,601 7,835,157 6,228,603 5,445,955
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) ............. -- -- (1,126,169) (668,754)
From net realized gains on security
transactions (Note 1E) ......................... -- -- -- --
------------- ------------- ------------- -------------
Net decrease in net assets from
distributions to shareholders .................... -- -- (1,126,169) (668,754)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ........................ 6,701,234 6,977,635 4,765,588 5,125,191
Net asset value of shares issued in reinvestment
of distributions to shareholders ............... -- -- 1,081,941 623,494
Payments for shares redeemed ..................... (11,998,943) (6,948,812) (8,149,800) (6,639,206)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets from
capital share transactions ....................... (5,297,709) 28,823 (2,302,271) (890,521)
------------- ------------- ------------- -------------
TOTAL INCREASE IN NET ASSETS ....................... 7,317,892 7,863,980 2,800,163 3,886,680
NET ASSETS
Beginning of year ................................ 103,259,746 95,395,766 74,327,406 70,440,726
------------- ------------- ------------- -------------
End of year ...................................... $ 110,577,638 $ 103,259,746 $ 77,127,569 $ 74,327,406
============= ============= ============= =============
UNDISTRIBUTED NET INVESTMENT
INCOME ........................................... $ -- $ -- $ 188,771 $ 291,199
============= ============= ============= =============
CAPITAL SHARE ACTIVITY
Sold ............................................. 461,564 532,195 368,469 423,870
Reinvested ....................................... -- -- 83,382 51,911
Redeemed ......................................... (825,738) (534,090) (630,609) (549,921)
------------- ------------- ------------- -------------
Net decrease in shares outstanding ............... (364,174) (1,895) (178,758) (74,140)
Shares outstanding, beginning of year ............ 7,718,217 7,720,112 6,041,840 6,115,980
------------- ------------- ------------- -------------
Shares outstanding, end of year .................. 7,354,043 7,718,217 5,863,082 6,041,840
============= ============= ============= =============
See accompanying notes to financial statements.
12
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
======================================================================================================================
NEW CENTURY NEW CENTURY
AGGRESSIVE PORTFOLIO INTERNATIONAL PORTFOLIO
------------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2005 2004 2005 2004
- ----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment loss .............................. $ (43,755) $ (56,431) $ (237,896) $ (130,081)
Net realized gains from
security transactions .......................... 154,869 304,188 84,860 1,136,175
Capital gain distributions from regulated
investment companies ........................... 76,023 20,496 320,739 12,092
Net change in unrealized appreciation/
(depreciation) on investments .................. 813,977 (18,638) 6,757,089 1,785,093
------------- ------------- ------------- -------------
Net increase in net assets from operations ......... 1,001,114 249,615 6,924,792 2,803,279
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) ............. -- -- -- --
From net realized gains on security
transactions (Note 1E) ......................... -- -- (789,174) --
------------- ------------- ------------- -------------
Net decrease in net assets from
distributions to shareholders .................... -- -- (789,174) --
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ........................ 1,174,899 530,663 14,451,797 7,138,355
Proceeds from redemption
fees collected (Note 1B) ....................... -- -- 73 --
Net asset value of shares issued in reinvestment
of distributions to shareholders ............... -- -- 788,064 --
Payments for shares redeemed ..................... (796,827) (133,786) (810,565) (781,003)
------------- ------------- ------------- -------------
Net increase in net assets from capital
share transactions ............................... 378,072 396,877 14,429,369 6,357,352
------------- ------------- ------------- -------------
TOTAL INCREASE IN NET ASSETS ....................... 1,379,186 646,492 20,564,987 9,160,631
NET ASSETS
Beginning of year ................................ 5,512,006 4,865,514 24,448,672 15,288,041
------------- ------------- ------------- -------------
End of year ...................................... $ 6,891,192 $ 5,512,006 $ 45,013,659 $ 24,448,672
============= ============= ============= =============
UNDISTRIBUTED NET INVESTMENT
INCOME ........................................... $ -- $ -- $ -- $ --
============= ============= ============= =============
CAPITAL SHARE ACTIVITY
Sold ............................................. 138,297 73,300 1,285,214 747,210
Reinvested ....................................... -- -- 71,773 --
Redeemed ......................................... (103,058) (18,336) (72,073) (80,727)
------------- ------------- ------------- -------------
Net increase in shares outstanding ............... 35,239 54,964 1,284,914 666,483
Shares outstanding, beginning of year ............ 755,287 700,323 2,428,116 1,761,633
------------- ------------- ------------- -------------
Shares outstanding, end of year .................. 790,526 755,287 3,713,030 2,428,116
============= ============= ============= =============
See accompanying notes to financial statements.
13
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
====================================================================================================
NEW CENTURY ALTERNATIVE
STRATEGIES PORTFOLIO
----------------------------
YEAR YEAR
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2005 2004
- ----------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ............................................... $ 704,047 $ 455,953
Net realized gains from security transactions ....................... 389,570 739,129
Capital gain distributions from regulated investment companies ...... 1,135,285 320,147
Net change in unrealized appreciation/(depreciation) on investments . 3,303,993 2,023,614
------------ ------------
Net increase in net assets from operations ............................ 5,532,895 3,538,843
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) ................................ (1,190,792) (581,288)
From net realized gains on security transactions (Note 1E) .......... (1,234,575) --
------------ ------------
Net decrease in net assets from distributions to shareholders ......... (2,425,367) (581,288)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ........................................... 22,175,175 16,825,271
Proceeds from redemption fees collected (Note 1B) ................... 76 --
Net asset value of shares issued in reinvestment of
distributions to shareholders ..................................... 2,403,567 573,254
Payments for shares redeemed ........................................ (2,760,723) (2,455,448)
------------ ------------
Net increase in net assets from capital share transactions ............ 21,818,095 14,943,077
------------ ------------
TOTAL INCREASE IN NET ASSETS .......................................... 24,925,623 17,900,632
NET ASSETS
Beginning of year ................................................... 51,634,754 33,734,122
------------ ------------
End of year ......................................................... $ 76,560,377 $ 51,634,754
============ ============
UNDISTRIBUTED NET INVESTMENT INCOME ................................... $ 181,141 $ 172,051
============ ============
CAPITAL SHARE ACTIVITY
Sold ................................................................ 1,906,069 1,509,894
Reinvested .......................................................... 208,871 52,209
Redeemed ............................................................ (235,708) (219,440)
------------ ------------
Net increase in shares outstanding .................................. 1,879,232 1,342,663
Shares outstanding, beginning of year ............................... 4,505,270 3,162,607
------------ ------------
Shares outstanding, end of year ..................................... 6,384,502 4,505,270
============ ============
See accompanying notes to financial statements.
14
NEW CENTURY CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
============================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- ----------------------------------------------------------------------------------------------------------------------------
YEARS ENDED OCTOBER 31,
----------------------------------------------------------------------------
2005 2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year .......... $ 13.38 $ 12.36 $ 10.09 $ 11.97 $ 18.07
----------- ----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment loss ....................... (0.09) (0.12) (0.06) (0.08) (0.10)
Net realized and unrealized gains
(losses) on investments ................. 1.75 1.14 2.33 (1.80) (4.62)
----------- ----------- ----------- ----------- -----------
Total from investment operations ............ 1.66 1.02 2.27 (1.88) (4.72)
----------- ----------- ----------- ----------- -----------
Less distributions:
Distributions from net
investment income ....................... -- -- -- -- --
Distributions from net realized gains ..... -- -- -- -- (1.38)
----------- ----------- ----------- ----------- -----------
Total distributions ......................... -- -- -- -- (1.38)
----------- ----------- ----------- ----------- -----------
Net asset value, end of year ................ $ 15.04 $ 13.38 $ 12.36 $ 10.09 $ 11.97
=========== =========== =========== =========== ===========
TOTAL RETURN (a) .............................. 12.41% 8.25% 22.50% (15.71%) (27.77%)
=========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) ............. $ 110,578 $ 103,260 $ 95,396 $ 82,310 $ 109,873
=========== =========== =========== =========== ===========
Ratio of expenses to average net assets (b) . 1.35% 1.41% 1.45% 1.40% 1.29%
Ratio of net investment loss to
average net assets (c) .................... (0.57%) (0.91%) (0.59%) (0.62%) (0.72%)
Portfolio turnover .......................... 13% 48% 71% 59% 70%
(a) Total return is a measure of the change in the value of an investment in
the Portfolio over the periods covered, which assumes any dividends or
capital gains distributions are reinvested in shares of the Portfolio.
Returns shown do not reflect the deduction of taxes a shareholder would pay
on Portfolio distributions or the redemption of Portfolio shares.
(b) The ratios of expenses to average net assets do not reflect the Portfolio's
proportionate share of expenses of the underlying investment companies in
which the Portfolio invests.
(c) Recognization of net investment income by the Portfolio is affected by the
timing of the declaration of dividends by the underlying investment
companies in which the Portfolio invests.
See accompanying notes to financial statements.
15
NEW CENTURY BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
============================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- ----------------------------------------------------------------------------------------------------------------------------
YEARS ENDED OCTOBER 31,
----------------------------------------------------------------------------
2005 2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year .......... $ 12.30 $ 11.52 $ 9.89 $ 11.35 $ 13.64
----------- ----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment income ..................... 0.15 0.11 0.16 0.13 0.23
Net realized and unrealized gains
(losses) on investments ................. 0.89 0.78 1.67 (1.49) (1.71)
----------- ----------- ----------- ----------- -----------
Total from investment operations ............ 1.04 0.89 1.83 (1.36) (1.48)
----------- ----------- ----------- ----------- -----------
Less distributions:
Distributions from net
investment income ....................... (0.19) (0.11) (0.20) (0.10) (0.23)
Distributions from net realized gains ..... -- -- -- -- (0.58)
----------- ----------- ----------- ----------- -----------
Total distributions ......................... (0.19) (0.11) (0.20) (0.10) (0.81)
----------- ----------- ----------- ----------- -----------
Net asset value, end of year ................ $ 13.15 $ 12.30 $ 11.52 $ 9.89 $ 11.35
=========== =========== =========== =========== ===========
TOTAL RETURN (a) .............................. 8.51% 7.75% 18.84% (12.08%) (11.21%)
=========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) ............. $ 77,128 $ 74,327 $ 70,441 $ 62,755 $ 71,251
=========== =========== =========== =========== ===========
Ratio of expenses to average net assets (d) . 1.38% 1.42%(c) 1.45%(b) 1.48% 1.49%
Ratio of net investment income to
average net assets (e) .................... 1.12% 0.88%(c) 1.56%(b) 1.19% 1.87%
Portfolio turnover .......................... 21% 44% 80% 93% 69%
(a) Total return is a measure of the change in the value of an investment in
the Portfolio over the periods covered, which assumes any dividends or
capital gains distributions are reinvested in shares of the Portfolio.
Returns shown do not reflect the deduction of taxes a shareholder would pay
on Portfolio distributions or the redemption of Portfolio shares.
(b) Absent fee waivers and expense reimbursements by the Advisor, the ratio of
expenses to average net assets would have been 1.46% and the ratio of net
investment income to average net assets would have been 1.55% for the year
ended October 31, 2003 (Note 2).
(c) Absent the recoupment of fees previously waived and reimbursed by the
Advisor, the ratio of expenses to average net assets would have been 1.41%
and the ratio of net investment income to average net assets would have
been 0.89% for the year ended October 31, 2004 (Note 2).
(d) The ratios of expenses to average net assets do not reflect the Portfolio's
proportionate share of expenses of the underlying investment companies in
which the Portfolio invests.
(e) Recognization of net investment income by the Portfolio is affected by the
timing of the declaration of dividends by the underlying investment
companies in which the Portfolio invests.
See accompanying notes to financial statements.
16
NEW CENTURY AGGRESSIVE PORTFOLIO
FINANCIAL HIGHLIGHTS
============================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- ----------------------------------------------------------------------------------------------------------------------------
YEARS ENDED OCTOBER 31,
----------------------------------------------------------------------------
2005 2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year .......... $ 7.30 $ 6.95 $ 5.47 $ 7.37 $ 10.00
----------- ----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment loss ....................... (0.06) (0.07) (0.06) (0.07) (0.07)
Net realized and unrealized gains
(losses) on investments .................. 1.48 0.42 1.54 (1.83) (2.56)
----------- ----------- ----------- ----------- -----------
Total from investment operations ........... 1.42 0.35 1.48 (1.90) (2.63)
----------- ----------- ----------- ----------- -----------
Less distributions:
Distributions from net
investment income ...................... -- -- -- -- --
Distributions from net realized gains .... -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total distributions ........................ -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Net asset value, end of year ............. $ 8.72 $ 7.30 $ 6.95 $ 5.47 $ 7.37
=========== =========== =========== =========== ===========
TOTAL RETURN (a) .............................. 19.45% 5.04% 27.06% (25.78%) (26.30%)
=========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) ............. $ 6,891 $ 5,512 $ 4,866 $ 3,610 $ 1,846
=========== =========== =========== =========== ===========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees (b) .................... 2.56% 2.71% 3.20% 2.95% 5.90%
After expense reimbursement
and waived fees (b) ..................... 1.50% 1.50% 1.50% 1.50% 1.50%
Ratios of net investment loss to average net assets:
Before expense reimbursement
and waived fees (c) ..................... (1.80%) (2.27%) (2.73%) (2.50%) (5.35%)
After expense reimbursement
and waived fees (c) ..................... (0.74%) (1.06%) (1.03%) (1.05%) (0.95%)
Portfolio turnover .......................... 19% 68% 78% 120% 86%
(a) Total return is a measure of the change in the value of an investment in
the Portfolio over the periods covered, which assumes any dividends or
capital gains distributions are reinvested in shares of the Portfolio.
Returns shown do not reflect the deduction of taxes a shareholder would pay
on Portfolio distributions or the redemption of Portfolio shares.
(b) The ratios of expenses to average net assets do not reflect the Portfolio's
proportionate share of expenses of the underlying investment companies in
which the Portfolio invests.
(c) Recognization of net investment income by the Portfolio is affected by the
timing of the declaration of dividends by the underlying investment
companies in which the Portfolio invests.
See accompanying notes to financial statements.
17
NEW CENTURY INTERNATIONAL PORTFOLIO
FINANCIAL HIGHLIGHTS
============================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- ----------------------------------------------------------------------------------------------------------------------------
YEARS ENDED OCTOBER 31,
----------------------------------------------------------------------------
2005 2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year .......... $ 10.07 $ 8.68 $ 6.52 $ 7.41 $ 10.00
----------- ----------- ----------- ----------- -----------
Income (loss) from investment operations:
Net investment loss ....................... (0.06) (0.05) (0.03) (0.06) (0.04)
Net realized and unrealized gains
(losses) on investments .................. 2.42 1.44 2.19 (0.81) (2.55)
----------- ----------- ----------- ----------- -----------
Total from investment operations ............ 2.36 1.39 2.16 (0.87) (2.59)
----------- ----------- ----------- ----------- -----------
Less distributions:
Distributions from net
investment income ..................... -- -- -- (0.02) --
Distributions from net realized gains ... (0.31) -- -- -- --
----------- ----------- ----------- ----------- -----------
Total distributions ......................... (0.31) -- -- (0.02) --
----------- ----------- ----------- ----------- -----------
Proceeds from redemption fees collected ..... 0.00(a) -- -- -- --
----------- ----------- ----------- ----------- -----------
Net asset value, end of year ................ $ 12.12 $ 10.07 $ 8.68 $ 6.52 $ 7.41
=========== =========== =========== =========== ===========
TOTAL RETURN (b) .............................. 23.70% 16.01% 33.13% (11.84%) (25.90%)
=========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) ............. $ 45,014 $ 24,449 $ 15,288 $ 7,655 $ 731
=========== =========== =========== =========== ===========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees (c) ..................... 1.55% 1.74% 2.11% 2.54% 10.81%
After expense reimbursement
and waived fees (c) ..................... 1.50% 1.50% 1.50% 1.50% 1.50%
Ratios of net investment loss
to average net assets:
Before expense reimbursement
and waived fees (d) ..................... (0.72%) (0.88%) (1.16%) (2.34%) (9.81%)
After expense reimbursement
and waived fees (d) ..................... (0.67%) (0.64%) (0.55%) (1.30%) (0.50%)
Portfolio turnover .......................... 3% 45% 56% 27% 83%
(a) Amount rounds to less than $0.01 per share.
(b) Total return is a measure of the change in the value of an investment in
the Portfolio over the periods covered, which assumes any dividends or
capital gains distributions are reinvested in shares of the Portfolio.
Returns shown do not reflect the deduction of taxes a shareholder would pay
on Portfolio distributions or the redemption of Portfolio shares.
(c) The ratios of expenses to average net assets do not reflect the Portfolio's
proportionate share of expenses of the underlying investment companies in
which the Portfolio invests.
(d) Recognization of net investment income by the Portfolio is affected by the
timing of the declaration of dividends by the underlying investment
companies in which the Portfolio invests.
See accompanying notes to financial statements.
18
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
FINANCIAL HIGHLIGHTS
============================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ----------------------------------------------------------------------------------------------------------------------------
PERIODS ENDED OCTOBER 31,
-----------------------------------------------------------------------
2005 2004 2003 2002(a)
- ----------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ............. $ 11.46 $ 10.67 $ 9.12 $ 10.00
------------- ------------- ------------- -------------
Income (loss) from investment operations:
Net investment income .......................... 0.15 0.14 0.11 0.01
Net realized and unrealized gains (losses)
on investments ............................... 0.87 0.83 1.54 (0.89)
------------- ------------- ------------- -------------
Total from investment operations ................. 1.02 0.97 1.65 (0.88)
------------- ------------- ------------- -------------
Less distributions:
Distributions from net investment income ....... (0.24) (0.18) (0.10) --
Distributions from net realized gains .......... (0.25) -- -- --
------------- ------------- ------------- -------------
Total distributions .............................. (0.49) (0.18) (0.10) --
------------- ------------- ------------- -------------
Proceeds from redemption fees collected .......... 0.00(b) -- -- --
------------- ------------- ------------- -------------
Net asset value, end of period ................... $ 11.99 $ 11.46 $ 10.67 $ 9.12
============= ============= ============= =============
TOTAL RETURN (d) ................................... 9.12% 9.12% 18.20% (8.80%)(c)
============= ============= ============= =============
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ................ $ 76,560 $ 51,635 $ 33,734 $ 19,529
============= ============= ============= =============
Ratios of expenses to average net assets (h) ..... 1.06% 1.12% 1.40%(g) 1.49%(e)(f)
Ratios of net investment income to
average net assets (i) ......................... 1.06% 1.04% 1.06%(g) 0.32%(e)(f)
Portfolio turnover ............................... 11% 11% 21% 7%(e)
(a) Represents the period from the initial public offering of shares (May 1,
2002) through October 31, 2002.
(b) Amount rounds to less than $0.01 per share.
(c) Not annualized.
(d) Total return is a measure of the change in the value of an investment in
the Portfolio over the periods covered, which assumes any dividends or
capital gains distributions are reinvested in shares of the Portfolio.
Returns shown do not reflect the deduction of taxes a shareholder would pay
on Portfolio distributions or the redemption of Portfolio shares.
(e) Annualized.
(f) Absent fee waivers and expense reimbursements by the Advisor, the ratio of
expenses to average net assets would have been 1.72%(e) and the ratio of
net investment income to average net assets would have been 0.09%(e) for
the period ended October 31, 2002 (Note 2).
(g) Absent the recoupment of fees previously waived and reimbursed by the
Advisor, the ratio of expenses to average net assets would have been 1.34%
and the ratio of net investment income to average net assets would have
been 1.12% for the year ended October 31, 2003 (Note 2).
(h) The ratios of expenses to average net assets do not reflect the Portfolio's
proportionate share of expenses of the underlying investment companies in
which the Portfolio invests.
(i) Recognization of net investment income by the Portfo lio is affected by the
timing of the declaration of dividends by the underlying investment
companies in which the Portfolio invests.
See accompanying notes to financial statements.
19
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005
==============================================================================================
INVESTMENT COMPANIES -- 99.4% SHARES VALUE
- ----------------------------------------------------------------------------------------------
GROWTH FUNDS -- 34.4%
American Funds AMCAP - Class A .............................. 217,282 $ 4,013,203
American Growth Fund of America - Class A ................... 260,249 7,612,272
Calamos Growth - Class A (a) ................................ 141,042 7,510,478
Fidelity Capital Appreciation ............................... 223,985 5,881,839
Goldman Sachs Growth Opportunities - Class A (a) ............ 213,092 4,594,253
iShares Russell 1000 Growth Index (b) ....................... 235 11,550
Marsico 21st Century (a) .................................... 574,563 6,957,954
Wells Fargo Advantage Endeavor Select - Class A (a) ......... 151,264 1,417,344
------------
37,998,893
------------
GROWTH AND INCOME FUNDS -- 34.0%
Fidelity Select Utilities Growth ............................ 66,093 2,848,611
Hotchkis & Wiley Large Cap Value - Class A .................. 381,264 8,822,438
iShares Dow Jones Select Dividend Index (b) ................. 137,100 8,393,262
iShares Dow Jones U.S. Energy Sector Index (b) .............. 33,000 2,737,680
iShares Russell 1000 Value Index (b) ........................ 14,800 990,416
iShares S&P 500 Index (b) ................................... 17,350 2,087,205
iShares S&P MidCap 400/BARRA Value Index (b) ................ 73,000 4,933,340
Powershares Dynamic Market .................................. 74,200 3,283,350
Vanguard 500 Index - Investor Shares ........................ 31,860 3,546,084
------------
37,642,386
------------
SMALL COMPANY FUNDS -- 16.9%
Buffalo Small Cap (a) ....................................... 52,442 1,428,533
FBR Small Cap (a) ........................................... 43,663 1,762,242
iShares S&P SmallCap 600/BARRA Growth Index (b) ............. 21,700 2,421,937
iShares S&P SmallCap 600/BARRA Value Index (b) .............. 27,400 1,701,814
Royce Opportunity - Investor Class (a) ...................... 310,300 4,083,555
William Blair Small Cap Growth - Class I (a) ................ 282,544 7,284,000
------------
18,682,081
------------
FOREIGN STOCK FUNDS -- 14.1%
Dodge & Cox International Stock ............................. 93,583 3,116,309
iShares MSCI EAFE Index (b) ................................. 40,200 2,263,260
iShares MSCI Emerging Markets Index (b) ..................... 64,900 5,159,550
Lazard International Small Cap - Investor Shares ............ 161,836 3,057,078
Tocqueville International Value (The) ....................... 125,587 2,011,905
------------
15,608,102
------------
TOTAL INVESTMENT COMPANIES (Cost $87,693,620) ................. $109,931,462
------------
20
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2005
==============================================================================================
MONEY MARKET SECURITIES -- 0.7% SHARES VALUE
- ----------------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $763,499) ........................................... 763,499 $ 763,499
------------
TOTAL INVESTMENTS AT VALUE --100.1% (Cost $88,457,119) ........ $110,694,961
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ............... (117,323)
------------
NET ASSETS -- 100.0% .......................................... $110,577,638
============
(a) Non-income producing security. (b) Closed-end fund.
See accompanying notes to financial statements.
21
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005
==============================================================================================
INVESTMENT COMPANIES -- 99.5% SHARES VALUE
- ----------------------------------------------------------------------------------------------
GROWTH AND INCOME FUNDS -- 33.0%
Dodge & Cox Stock ........................................... 27,073 $ 3,619,640
Fidelity Select Utilities Growth ............................ 51,297 2,210,906
Hotchkis & Wiley Large Cap Value - Class A .................. 267,561 6,191,369
iShares Dow Jones Select Dividend Index (b) ................. 90,600 5,546,532
iShares Dow Jones U.S. Energy Sector Index (b) .............. 12,300 1,020,408
iShares Russell 1000 Value Index (b) ........................ 200 13,384
iShares S&P 500 Index (b) ................................... 37,600 4,523,280
iShares S&P MidCap 400/BARRA Value Index (b) ................ 9,000 608,220
Powershares Dynamic Market .................................. 39,000 1,725,750
------------
25,459,489
------------
HIGH YIELD BOND FUNDS -- 12.0%
Fidelity Advisor High Income Advantage - Class I ............ 494,709 4,590,896
MainStay High Yield Corporate Bond - Class A ................ 742,495 4,610,893
------------
9,201,789
------------
GROWTH FUNDS -- 11.9%
American Funds AMCAP - Class A .............................. 145,097 2,679,951
Calamos Growth - Class A (a) ................................ 29,047 1,546,768
Fidelity Capital Appreciation ............................... 54,681 1,435,933
iShares Russell 1000 Growth Index (b) ....................... 300 14,745
S&P MidCap 400 Depositary Receipts .......................... 17,580 2,241,450
Wells Fargo Advantage Endeavor Select - Class A (a) ......... 134,815 1,263,216
------------
9,182,063
------------
SMALL COMPANY FUNDS -- 10.9%
FBR Small Cap (a) ........................................... 22,668 914,867
iShares S&P SmallCap 600/BARRA Growth Index (b) ............. 15,400 1,718,794
iShares S&P SmallCap 600/BARRA Value Index (b) .............. 27,800 1,726,658
Royce Opportunity - Investor Class (a) ...................... 102,269 1,345,861
William Blair Small Cap Growth - Class I (a) ................ 104,528 2,694,739
------------
8,400,919
------------
FOREIGN STOCK FUNDS -- 9.3%
Dodge & Cox International Stock ............................. 16,513 549,868
iShares MSCI EAFE Index (b) ................................. 57,300 3,225,990
Lazard International Small Cap - Investor Shares ............ 56,905 1,074,931
Tocqueville International Value (The) ....................... 143,495 2,298,788
------------
7,149,577
------------
CONVERTIBLE SECURITY FUNDS -- 5.2%
Davis Appreciation & Income ................................. 80,941 2,250,953
Franklin Convertible Securities - Class A ................... 107,711 1,774,001
------------
4,024,954
------------
CORPORATE BOND FUNDS -- 5.0%
Loomis Sayles Bond - Institutional Class .................... 279,472 3,823,180
------------
WORLDWIDE BOND FUNDS -- 4.5%
Loomis Sayles Global Bond - Institutional Class ............. 71,792 1,102,731
PIMCO Foreign Bond - Institutional Class .................... 134,237 1,432,306
Templeton Global Bond - Class A ............................. 94,384 968,374
------------
3,503,411
------------
22
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2005
==============================================================================================
INVESTMENT COMPANIES -- 99.5% (Continued) SHARES VALUE
- ----------------------------------------------------------------------------------------------
GOVERNMENT BOND FUNDS -- 4.0%
American Century Target Maturities Trust Series 2015 -
Investor Class ............................................ 41,756 $ 3,106,612
------------
HIGH QUALITY BOND FUNDS -- 3.0%
Dodge & Cox Income .......................................... 185,962 2,341,267
------------
EMERGING MARKETS FUNDS -- 0.7%
TCW Galileo Emerging Markets Income - Class I ............... 64,593 520,621
------------
TOTAL INVESTMENT COMPANIES (Cost $65,857,863) ................. $ 76,713,882
------------
==============================================================================================
MONEY MARKET SECURITIES -- 0.6% SHARES VALUE
- ----------------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $502,256) ......................................... 502,256 $ 502,256
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $66,360,119) ....... $ 77,216,138
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ............... (88,569)
------------
NET ASSETS -- 100.0%........................................... $ 77,127,569
============
(a) Non-income producing security. (b) Closed-end fund.
See accompanying notes to financial statements.
23
NEW CENTURY AGGRESSIVE PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005
==============================================================================================
INVESTMENT COMPANIES -- 99.5% SHARES VALUE
- ----------------------------------------------------------------------------------------------
SECTOR FUNDS -- 67.2%
Fidelity Select Medical Delivery (a) ........................ 8,010 $ 422,345
Fidelity Select Wireless (a) ................................ 19,538 127,388
iShares Dow Jones U.S. Energy Sector Index (b) .............. 13,400 1,111,664
iShares Goldman Sachs Natural Resources Index (b) ........... 8,500 713,150
iShares Goldman Sachs Networking Index (a) (b) .............. 11,100 329,892
iShares MSCI Emerging Markets Index (b) ..................... 8,700 691,650
iShares Nasdaq Biotechnology Index (a) (b) .................. 7,900 583,889
Technology Select Sector SPDR ............................... 31,800 650,310
------------
4,630,288
------------
MID-CAP FUNDS -- 19.2%
Calamos Growth - Class A (a) ................................ 9,313 495,937
iShares S&P MidCap 400/BARRA Growth Index (b) ............... 4,500 317,655
S&P MidCap 400 Depositary Receipts .......................... 4,002 510,255
------------
1,323,847
------------
SMALL-CAP FUNDS -- 7.5%
Buffalo Small Cap (a) ....................................... 10,201 277,888
Perritt Micro Cap Opportunities (a) ......................... 8,123 241,645
------------
519,533
------------
LARGE-CAP FUNDS -- 5.6%
Fidelity Capital Appreciation ............................... 14,618 383,861
------------
TOTAL INVESTMENT COMPANIES (Cost $5,394,966) .................. $ 6,857,529
------------
==============================================================================================
MONEY MARKET SECURITIES -- 3.6% SHARES VALUE
- ----------------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $249,025) ........................................... 249,025 $ 249,025
------------
TOTAL INVESTMENTS AT VALUE -- 103.1% (Cost $5,643,991) ........ $ 7,106,554
LIABILITIES IN EXCESS OF OTHER ASSETS -- (3.1%) ............... (215,362)
------------
NET ASSETS -- 100.0% .......................................... $ 6,891,192
============
(a) Non-income producing security. (b) Closed-end fund.
See accompanying notes to financial statements.
24
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005
==============================================================================================
INVESTMENT COMPANIES -- 99.4% SHARES VALUE
- ----------------------------------------------------------------------------------------------
EUROPE FUNDS -- 25.8%
iShares MSCI Austria Index (b) .............................. 130,200 $ 3,391,710
iShares MSCI Belgium Index (b) .............................. 81,400 1,526,250
iShares MSCI Germany Index (b) .............................. 99,700 1,884,330
iShares MSCI Sweden Index (b) ............................... 60,300 1,285,596
iShares MSCI United Kingdom Index (b) ....................... 45,646 844,451
Ivy European Opportunities - Class A ........................ 95,171 2,685,718
------------
11,618,055
------------
ASIA/PACIFIC FUNDS -- 22.4%
Fidelity Japan (a) .......................................... 99,259 1,487,894
Fidelity Japan Small Companies .............................. 113,088 1,611,511
iShares MSCI Australia Index (b) ............................ 112,000 2,073,120
iShares MSCI Pacific Ex-Japan Index (b) ..................... 14,200 1,385,920
Matthews China .............................................. 90,910 1,279,100
Matthews Japan (a) .......................................... 19,162 319,434
Matthews Pacific Tiger - Class I ............................ 111,002 1,919,220
------------
10,076,199
------------
DIVERSIFIED FUNDS -- 20.6%
Dodge & Cox International Stock ............................. 85,750 2,855,460
iShares MSCI EAFE Index (b) ................................. 30,900 1,739,670
Lazard International Small Cap - Investor Shares ............ 101,678 1,920,699
Oakmark International - Class I ............................. 16,170 372,072
Tocqueville International Value (The) ....................... 149,313 2,392,002
------------
9,279,903
------------
AMERICAS FUNDS -- 18.8%
Fidelity Canada ............................................. 50,037 1,958,443
iShares MSCI Canada Index (b) ............................... 85,200 1,704,000
iShares MSCI Mexico Index (b) ............................... 39,300 1,260,351
iShares S&P Latin American 40 Index (b) ..................... 30,500 3,525,800
------------
8,448,594
------------
EMERGING MARKETS FUNDS -- 11.8%
Dreyfus Premier Emerging Markets - Class A .................. 30,738 663,940
iShares MSCI Emerging Markets Index (b) ..................... 24,000 1,908,000
T. Rowe Price Emerging Europe & Mediterranean (a) ........... 120,641 2,750,616
------------
5,322,556
------------
TOTAL INVESTMENT COMPANIES (Cost $34,129,167) ................. $ 44,745,307
============
==============================================================================================
MONEY MARKET SECURITIES -- 0.7% SHARES VALUE
- ----------------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $327,812) ........................................... 327,812 $ 327,812
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $34,456,979) ....... $ 45,073,119
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ............... (59,460)
------------
NET ASSETS -- 100.0% .......................................... $ 45,013,659
------------
(a) Non-income producing security. (b) Closed-end fund.
See accompanying notes to financial statements.
25
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2005
==============================================================================================
INVESTMENT COMPANIES -- 97.6% SHARES VALUE
- ----------------------------------------------------------------------------------------------
LONG/SHORT EQUITY FUNDS -- 15.4%
CGM Focus ................................................... 32,302 $ 1,179,032
Diamond Hill Focus Long-Short - Class I (a) ................. 147,345 2,333,950
Hussman Strategic Growth .................................... 257,193 4,156,241
Needham Growth (a) .......................................... 12,273 408,814
Prudent Bear (a) ............................................ 175,669 966,181
Schwab Hedged Equity (a) .................................... 191,612 2,770,713
------------
11,814,931
------------
MERGER ARBITRAGE FUNDS -- 13.7%
Arbitrage Fund (The) - Class R (a) .......................... 204,006 2,460,317
Enterprise Mergers and Acquisitions - Class A (a) ........... 293,883 3,414,924
Gabelli ABC ................................................. 80,208 814,114
Merger Fund (The) ........................................... 246,227 3,764,810
------------
10,454,165
------------
GLOBAL MACRO FUNDS -- 12.5%
Capital and Income Strategies (b) ........................... 20,000 340,000
First Eagle Global - Class A ................................ 129,730 5,509,620
Franklin Mutual Discovery - Class Z ......................... 91,927 2,397,457
Oppenheimer International Bond - Class A .................... 222,642 1,309,133
------------
9,556,210
------------
ASSET ALLOCATION FUNDS -- 12.0%
Berwyn Income ............................................... 95,166 1,119,147
FPA Crescent - Class I ...................................... 108,845 2,757,034
Greenspring ................................................. 70,606 1,520,135
Leuthold Core Investment .................................... 132,956 2,328,055
Oakmark Equity and Income - Class I ......................... 20,308 506,290
Potomac Contrabond (a) ...................................... 20,349 374,632
Rydex Series - Juno - Investor Class (a) .................... 29,958 563,504
------------
9,168,797
------------
NATURAL RESOURCES FUNDS -- 9.6%
FBR Gas Utility Index ....................................... 26,560 458,151
Permanent Portfolio ......................................... 19,486 543,647
PIMCO Commodity Real Return Strategy - Class A .............. 181,734 2,945,909
RS Global Natural Resources ................................. 67,813 2,210,039
Scudder Global Commodities Stock (b) ........................ 7,000 107,520
T. Rowe Price New Era ....................................... 7,931 322,250
Vanguard Precious Metals & Minerals ......................... 37,251 776,685
------------
7,364,201
------------
OPTIONS/HEDGED FUNDS -- 7.0%
Analytic Defensive Equity - Institutional Shares ............ 116,021 1,533,794
Gateway ..................................................... 152,668 3,835,029
------------
5,368,823
------------
HIGH YIELD FUNDS -- 6.9%
Calamos High Yield - Class A ................................ 31,516 331,229
Fidelity Capital & Income ................................... 90,074 746,715
MainStay Global High Income - Class A ....................... 106,200 1,214,932
MainStay High Yield Corporate Bond - Class A ............... 227,000 1,409,671
26
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2005
===============================================================================================
INVESTMENT COMPANIES -- 97.6% (Continued) SHARES VALUE
- -----------------------------------------------------------------------------------------------
HIGH YIELD FUNDS -- 6.9% (Continued)
Neuberger Berman Income Opportunity (b) ..................... 39,700 $ 564,931
Pioneer High Yield - Class A ................................ 90,590 1,012,794
------------
5,280,272
------------
REAL ESTATE FUNDS -- 6.8%
AIM Select Real Estate Income (b) ........................... 40,170 635,489
Alpine Realty Income and Growth - Class Y ................... 22,334 489,557
JPMorgan U.S. Real Estate - Class A ......................... 37,696 715,463
Neuberger Berman Real Estate Securities Income (b) .......... 23,000 326,600
Scudder RREEF Real Estate (b) ............................... 16,100 338,905
Third Avenue Real Estate Value .............................. 90,564 2,664,403
------------
5,170,417
------------
DEEP VALUE/DISTRESSED SECURITIES FUNDS -- 6.2%
Fairholme ................................................... 48,034 1,176,825
Franklin Mutual Beacon - Class Z ............................ 98,368 1,621,097
Third Avenue Value .......................................... 33,757 1,978,809
------------
4,776,731
------------
CONVERTIBLE ARBITRAGE FUNDS -- 4.3%
Calamos Market Neutral - A Shares ........................... 263,518 3,293,976
------------
MARKET NEUTRAL FUNDS -- 3.2%
James Advantage Market Market Neutral - Class A ............. 48,303 605,242
JPMorgan Multi-Cap Market Neutral - Select Shares (a) ....... 50,689 551,500
Laudus Rosenberg Value Long/Short Equity (a) ................ 80,611 851,257
Phoenix Capital Market Neutral - Class A (a) ................ 39,259 466,007
------------
2,474,006
------------
TOTAL INVESTMENT COMPANIES (Cost $66,267,836) ................. $ 74,722,529
------------
==============================================================================================
COMMON STOCKS -- 0.2% SHARES VALUE
- ----------------------------------------------------------------------------------------------
Plum Creek Timber Company, Inc. .............................
(Cost $87,952) ............................................ 2,950 $ 114,755
------------
==============================================================================================
MONEY MARKET SECURITIES -- 2.4% SHARES VALUE
- ----------------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $1,847,182) ......................................... 1,847,182 $ 1,847,182
------------
TOTAL INVESTMENTS AT VALUE --100.2% (Cost $68,202,970) ........ $ 76,684,466
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.2%) ............... (124,089)
------------
NET ASSETS -- 100.0% .......................................... $ 76,560,377
============
(a) Non-income producing security. (b) Closed-end fund.
See accompanying notes to financial statements.
27
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2005
================================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
New Century Portfolios ("New Century") is organized as a Massachusetts business
trust which is registered under the Investment Company Act of 1940, as amended,
as an open-end management investment company and currently offers shares of five
series: New Century Capital Portfolio, New Century Balanced Portfolio, New
Century Aggressive Portfolio, New Century International Portfolio and New
Century Alternative Strategies Portfolio (together, the "Portfolios"). New
Century Capital Portfolio and New Century Balanced Portfolio commenced
operations on January 31, 1989. New Century Aggressive Portfolio and New Century
International Portfolio commenced operations on November 1, 2000, and New
Century Alternative Strategies Portfolio commenced operations on May 1, 2002.
Weston Financial Group, Inc. (the "Advisor"), which serves as the investment
advisor to each Portfolio, was acquired by Washington Trust Bancorp, Inc., the
bank holding company parent of The Washington Trust Company, a Rhode Island
chartered bank headquartered in Westerly, Rhode Island, effective August 31,
2005. Following the acquisition, the Advisor became a wholly-owned subsidiary of
The Washington Trust Company. Weston Securities Corporation (the "Distributor")
which serves as the distributor and principal underwriter to each Portfolio was
also acquired by Washington Trust Bancorp, Inc. Following the acquisition, the
Distributor became a wholly-owned subsidiary of Washington Trust Bancorp, Inc.
The acquisition was designed to permit the Advisor's and Distributor's
day-to-day investment advisory and distribution activities, including advising
the Portfolios, to continue under the direction of the Advisor's and
Distributor's current management team.
The investment objective of New Century Capital Portfolio is to provide capital
growth, with a secondary objective to provide income, while managing risk. This
Portfolio seeks to achieve its objectives by investing primarily in shares of
other registered investment companies that emphasize investments in equities
(domestic and foreign).
The investment objective of New Century Balanced Portfolio is to provide income,
with a secondary objective to provide capital growth, while managing risk. This
Portfolio seeks to achieve its objectives by investing primarily in shares of
other registered investment companies that emphasize investments in equities
(domestic and foreign), and fixed income securities (domestic and foreign).
The investment objective of New Century Aggressive Portfolio is to provide
capital growth, without regard to current income, while managing risk. This
Portfolio seeks to achieve its objective by investing primarily in shares of
registered investment companies that emphasize investments in equities (domestic
and foreign). The New Century Aggressive Portfolio may also invest in shares of
registered investment
28
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2005
================================================================================
companies that seek appreciation by investing in fixed income securities,
including high-yield, lower rated debt securities.
The investment objective of New Century International Portfolio is to provide
capital growth, with a secondary objective to provide income, while managing
risk. This Portfolio seeks to achieve its objectives by investing primarily in
shares of registered investment companies that emphasize investments in equities
and fixed income securities (foreign, worldwide, emerging markets and domestic).
The investment objective of New Century Alternative Strategies Portfolio is to
provide long-term capital appreciation, with a secondary objective to earn
income, while managing risk. This Portfolio seeks to achieve its objectives by
investing primarily in shares of other registered investment companies that
emphasize alternative strategies.
The price of shares of each Portfolio fluctuates daily and there is no assurance
that the Portfolios will be successful in achieving their stated investment
objectives.
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements.
These policies are in conformity with accounting principles generally accepted
in the United States of America.
A. INVESTMENT VALUATION
--------------------
Investments, representing primarily capital stock of other investment companies,
are valued at their net asset value as reported by such companies. The net asset
value as reported by open-end investment companies may be based on fair value
pricing; to understand the fair value pricing process used by such companies,
consult their most current prospectus.
Investments in securities traded on a national securities exchange are valued at
the last reported sales price; securities included in the NASDAQ National Market
System are valued at the Nasdaq Official Closing Price; other securities traded
in the over-the-counter market and listed securities for which no sale is
reported on that date are valued at the last reported bid price. Other assets
and securities for which no quotations are readily available or for which
quotations the Advisor believes do not reflect market value are valued at fair
value as determined in good faith by the Advisor under the supervision of the
Board of Trustees. Short-term investments are valued at amortized cost which
approximates market value.
B. SHARE VALUATION
---------------
The net asset value per share of each Portfolio is calculated daily by dividing
the total value of each Portfolio's assets, less liabilities, by the number of
shares outstanding. The offering price and redemption price per share of each
Portfolio is equal to the net
29
NEW CENTURY PORTFOLIOs
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2005
================================================================================
asset value per share, except that shares of each Portfolio are subject to a
redemption fee of 2.00% if redeemed within 30 days of the date of purchase. No
redemption fee will be imposed on the redemption of shares representing
reinvested dividends or capital gain distributions, or on amounts representing
capital appreciation of shares. During the year ended October 31, 2005, proceeds
from redemption fees totaled $73 and $76, respectively, for the New Century
International Portfolio and the New Century Alternative Strategies Portfolio. No
redemption fees were collected for the New Century Capital, New Century Balanced
and New Century Aggressive Portfolios.
C. INVESTMENT TRANSACTIONS
-----------------------
Investment transactions are recorded on a trade date basis. Gains and losses on
securities sold are determined on a specific identification method.
D. INCOME RECOGNITION
------------------
Interest, if any, is accrued on portfolio investments daily. Dividend income and
capital gain distributions are recorded on the ex-dividend date.
E. DISTRIBUTIONS TO SHAREHOLDERS
-----------------------------
Dividends arising from net investment income, if any, are declared and paid
semi-annually to shareholders of the New Century Balanced and New Century
Alternative Strategies Portfolios. Dividends from net investment income, if any,
are declared and paid annually for the New Century Capital, New Century
Aggressive and New Century International Portfolios. Net realized short-term
capital gains, if any, may be distributed throughout the year and net realized
long-term capital gains, if any, are distributed at least once each year. 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. There were no differences between the
book and tax basis of distributions for the years ended October 31, 2005 and
2004.
F. COST OF OPERATIONS
------------------
The Portfolios bear all costs of their operations other than expenses
specifically assumed by the Advisor. Expenses directly attributable to a
Portfolio are charged to that Portfolio; other expenses are allocated
proportionately among the Portfolios in relation to the net assets of each
Portfolio.
G. USE OF ESTIMATES
----------------
In preparing financial statements in accordance with accounting principles
generally accepted in the United States of America, management is required to
make estimates and assumptions that affect the reported amount of assets and
liabilities, the disclosure of contingent assets and liabilities, and revenues
and expenses during the reporting period. Actual results could differ from those
estimates.
30
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2005
================================================================================
(2) INVESTMENT ADVISORY FEE, ADMINISTRATIVE AGREEMENT AND TRUSTEES' FEE
Fees paid by each Portfolio pursuant to separate
Investment Advisory Agreements with the Advisor are computed daily and paid
monthly at an annualized rate of 1% on the first $100 million of average daily
net assets and .75% of average daily net assets exceeding that amount. The fees
for New Century Alternative Strategies Portfolio, however, are computed at an
annualized rate of .75% of average daily net assets. The advisory fees are based
on the net assets of each of the Portfolios separately, and not on the total net
assets of the Portfolios combined.
The Advisor has contractually agreed to limit the total expenses (excluding
interest, taxes, brokerage and extraordinary expenses) to an annual rate of
1.50% of average net assets for each of the Portfolios. This contractual fee
waiver is in place until August 31, 2007. Accordingly, for the year ended
October 31, 2005, the Advisor waived its entire advisory fee of $58,707 and
reimbursed $3,446 of other operating expenses for the New Century Aggressive
Portfolio and waived investment advisory fees of $18,797 for the New Century
International Portfolio. No waiver was necessary for New Century Capital, New
Century Balanced or New Century Alternative Strategies Portfolios.
Any advisory fees waived and/or any other operating expenses absorbed by the
Advisor pursuant to an agreed upon expense cap shall be reimbursed by the
Portfolio to the Advisor, if so requested by the Advisor, provided the aggregate
amount of the Portfolio's current total operating expenses for such fiscal year
does not exceed the applicable existing limitation on Portfolio expenses, and
the reimbursement is made within three years after the year in which the Advisor
incurred the expense. During the year ended October 31, 2005, the Advisor did
not recoup any fees waived or other operating expenses absorbed from New Century
Aggressive Portfolio and New Century International Portfolio. The Advisor has
recouped all fees waived and expenses reimbursed for New Century Balanced
Portfolio and New Century Alternative Strategies Portfolio. No fees have been
waived or reimbursed for the New Century Capital Portfolio.
As of October 31, 2005, the amounts available for reimbursement that have been
paid and/or waived by the Advisor on behalf of the following Portfolios are as
follows:
- --------------------------------------------------------------------------------
New Century Aggressive Portfolio ................................. $ 195,005
New Century International Portfolio .............................. $ 129,560
- --------------------------------------------------------------------------------
31
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2005
================================================================================
As of October 31, 2005, the Advisor may recapture a portion of the above amounts
no later than the dates as stated below:
- --------------------------------------------------------------------------------
OCTOBER 31, OCTOBER 31, OCTOBER 31,
2006 2007 2008
- --------------------------------------------------------------------------------
New Century Aggressive Portfolio ...... $ 68,836 $ 64,016 $ 62,153
New Century International Portfolio ... $ 62,733 $ 48,030 $ 18,797
- --------------------------------------------------------------------------------
Fees paid by the Portfolios pursuant to an Administration Agreement with the
Advisor to administer the ordinary course of the Portfolios' business are paid
monthly from a detail of actual expenses incurred in the overseeing of the
Portfolios' affairs. All expenses incurred overseeing the Portfolios' affairs
are reimbursed monthly.
The Portfolios pay each Trustee who is not affiliated with the Advisor a $10,000
annual retainer, paid quarterly, and a per meeting fee of $1,000. The Portfolios
will also pay each Trustee who is not affiliated with the Advisor a $1,000
special meeting fee if held independent of a Regularly Scheduled Board Meeting.
Trustees who are affiliated with the Advisor do not receive compensation.
(3) DISTRIBUTION PLAN AND OTHER TRANSACTIONS WITH AFFILIATES
The Portfolios have adopted a Distribution Plan (the "Plan") under Section 12(b)
of the Investment Company Act of 1940 and Rule 12b-1 thereunder. Under the Plan,
each Portfolio may pay up to .25% of its average daily net assets to the
Distributor for activities primarily intended to result in the sale of shares.
Under its terms, the Plan shall remain in effect from year to year, provided
such continuance is approved annually by a vote of a majority of the Trustees
and a majority of those Trustees who are not "interested persons" of the
Portfolios and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan.
During the year ended October 31, 2005, the Distributor received $179,526,
$111,142, $13,575, $77,284 and $42,378 from New Century Capital, Balanced,
Aggressive, International and Alternative Strategies Portfolios, respectively,
pursuant to the Plan.
Also during this time, the Distributor received sales commissions and other
compensation of $78,728, $67,370, $1,118, $10,154 and $108,613 in connection
with the purchase of investment company shares by New Century Capital, Balanced,
Aggressive, International and Alternative Strategies Portfolios, respectively.
The Distributor has voluntarily agreed to reduce payments made by each Portfolio
pursuant to the Plan in amounts equal to the sales commissions and other
compensation.
Certain officers and trustees of New Century are also officers and/or directors
of the Advisor and the Distributor.
32
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2005
================================================================================
(4) INVESTMENT TRANSACTIONS
For the year ended October 31, 2005, the cost of purchases and the proceeds from
sales of securities other than short-term investments and U.S. government
securities were as follows:
- --------------------------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
Purchases of investment securities ............ $14,200,129 $15,898,128 $ 1,537,614 $14,976,508 $27,991,413
=========== =========== =========== =========== ===========
Proceeds from sales of investment securities .. $18,004,830 $16,889,726 $ 1,130,997 $ 1,000,000 $ 7,168,507
=========== =========== =========== =========== ===========
- --------------------------------------------------------------------------------------------------------------------------
(5) TAX MATTERS
It is each Portfolio's policy to comply with the special provisions of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Portfolio so
qualifies and distributes at least 90% of its taxable net income, the Portfolio
(but not the shareholders) will be relieved of federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Portfolio's intention to declare as
dividends in each calendar year at least 98% of its net investment income
(earned during the calendar year) and 98% of its net realized capital gains
(earned during the twelve months ended October 31) plus undistributed amounts
from prior years.
For the year ended October 31, 2005, the following reclassifications were made
as a result of permanent differences between the financial statement and income
tax reporting requirements:
- --------------------------------------------------------------------------------------------------------------------------
DECREASE IN
INCREASE IN ACCUMULATED
UNDISTRIBUTED NET REALIZED DECREASE IN
NET INVESTMENT GAINS(LOSSES) PAID IN
INCOME (LOSS) ON INVESTMENTS CAPITAL
- --------------------------------------------------------------------------------------------------------------------------
New Century Capital Portfolio ............................. $ 628,007 $ (244,443) $ (383,564)
New Century Balanced Portfolio ............................ 167,926 (167,926) --
New Century Aggressive Portfolio .......................... 43,755 (10,869) (32,886)
New Century International Portfolio ....................... 237,896 (22,030) (215,866)
New Century Alternative Strategies Portfolio .............. 495,835 (495,835) --
- --------------------------------------------------------------------------------------------------------------------------
These reclassifications did not change the net assets of the Portfolios.
33
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2005
==========================================================================================================================
The tax character of distributable earnings at October 31, 2005 was as follows:
- --------------------------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
Undistributed ordinary income ................. $ -- $ 188,771 $ -- $ -- $ 181,141
Unrealized appreciation ....................... 22,237,842 10,747,153 1,439,125 10,616,140 8,453,187
Capital loss carryforwards .................... (8,985,464) (2,994,514) (1,290,780) -- --
Undistributed long term gains ................. -- -- -- 381,798 452,458
----------- ----------- ----------- ----------- -----------
Total distributable earnings .................. $13,252,378 $ 7,941,410 $ 148,345 $10,997,938 $ 9,086,786
=========== =========== =========== =========== ===========
- --------------------------------------------------------------------------------------------------------------------------
The following information is based upon the federal income tax cost of
investment securities as of October 31, 2005:
- --------------------------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation ................. $22,257,770 $11,142,489 $ 1,467,855 $10,696,946 $ 9,135,775
Gross unrealized depreciation ................. (19,928) (395,336) (28,730) (80,806) (682,588)
----------- ----------- ----------- ----------- -----------
Net unrealized appreciation ................... $22,237,842 $10,747,153 $ 1,439,125 $10,616,140 $ 8,453,187
=========== =========== =========== =========== ===========
- --------------------------------------------------------------------------------------------------------------------------
The difference between the federal income tax cost of portfolio investments and
the financial statement cost for New Century Balanced, Aggressive and
Alternative Strategies Portfolios is due to certain timing differences in the
recognition of capital losses under income tax regulations and accounting
principles generally accepted in the United States of America. These "book/tax"
differences are temporary in nature and are primarily due to the tax deferral of
losses on wash sales.
As of October 31, 2005, the Portfolios had the following capital loss
carryforwards for federal income tax purposes. These capital loss carryforwards
may be utilized in future years to offset net realized capital gains, if any,
prior to distributing such gains to shareholders.
- --------------------------------------------------------------------------------------------------------------------------
NEW NEW NEW
CENTURY CENTURY CENTURY
CAPITAL BALANCED AGGRESSIVE
EXPIRES OCTOBER 31, PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------
2010....................................................... $ 5,854,434 $ 2,850,984 $ 1,174,122
2011....................................................... 3,131,030 143,530 116,658
- --------------------------------------------------------------------------------------------------------------------------
34
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2005
================================================================================
During the year ended October 31, 2005, the following amounts of capital loss
carryforwards were utilized to offset current year realized gains:
- --------------------------------------------------------------------------------
New Century Capital Portfolio .................................... $ 4,603,658
New Century Balanced Portfolio ................................... $ 2,716,272
New Century Aggressive Portfolio ................................. $ 220,023
- --------------------------------------------------------------------------------
(6) CONTINGENCIES AND COMMITMENTS
New Century indemnifies its officers and trustees for certain liabilities that
might arise from their performance of their duties to the Portfolios.
Additionally, in the normal course of business, New Century, on behalf of its
Portfolios, enters into contracts that contain a variety of representations and
warranties and which provide general indemnifications. The Portfolios' maximum
exposure under these arrangements is unknown, as this would involve future
claims that may be made against the Portfolios that have not yet occurred.
However, based on experience, New Century expects the risk of loss to be remote.
35
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
================================================================================
To the Shareholders and Board of Trustees of
New Century Portfolios
Wellesley, Massachusetts
We have audited the accompanying statements of assets and liabilities of New
Century Capital Portfolio, New Century Balanced Portfolio, New Century
Aggressive Portfolio, New Century International Portfolio and New Century
Alternative Strategies Portfolio, each a series of shares of beneficial interest
of New Century Portfolios, including the portfolios of investments, as of
October 31, 2005, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years then
ended, and the financial highlights for the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of October 31, 2005 by correspondence with
the custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of New
Century Capital Portfolio, New Century Balanced Portfolio, New Century
Aggressive Portfolio, New Century International Portfolio and New Century
Alternative Strategies Portfolio as of October 31, 2005, the results of their
operations for the year then ended, the changes in their net assets for each of
the two years then ended, and their financial highlights for the periods
indicated therein, in conformity with accounting principles generally accepted
in the United States of America.
/s/ BRIGGS, BUNTING & DOUGHERTY, LLP
BRIGGS, BUNTING & DOUGHERTY, LLP
Philadelphia, Pennsylvania
November 10, 2005
36
BOARD OF TRUSTEES AND OFFICERS (UNAUDITED)
================================================================================
Overall responsibility for management of New Century rests with the Board of
Trustees. The Trustees serve during the lifetime of New Century and until its
termination, or until death, resignation, retirement or removal. The Trustees,
in turn, elect the officers of New Century to actively supervise its day-to-day
operations. The officers have been elected for an annual term. The following
table provides information regarding each Trustee and officer of New Century:
NUMBER OF
PRINCIPAL OCCUPATION(S) PORTFOLIOS IN OTHER
NAME, POSITION(S) DURING PAST 5 YEARS FUND COMPLEX DIRECTORSHIPS
ADDRESS LENGTH OF HELD WITH AND DIRECTORSHIPS OF OVERSEEN HELD BY
AND AGE TIME SERVED NEW CENTURY PUBLIC COMPANIES BY TRUSTEE TRUSTEE
- -----------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES:
- -----------------------------------------------------------------------------------------------------------------------------
*Douglas A. Biggar Since 1988 Chairman/ Managing Director, 5 None
40 William Street, Trustee Weston Financial Group, Inc.;
Suite 100 Vice President of Weston
Wellesley, MA 02481 Securities Corporation.
(age 58)
- -----------------------------------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES:
- -----------------------------------------------------------------------------------------------------------------------------
Stanley H. Cooper, Esq. Since 1988 Trustee Attorney in private practice. 5 None
One Ashford Lane
Andover, MA 01810
(age 58)
- -----------------------------------------------------------------------------------------------------------------------------
Roger Eastman, CPA Since 1989 Trustee Retired; Formerly, the Executive 5 None
10682 Gulfshore Drive C-103 Vice President and Chief Operating
Naples, FL 34108 Officer, Danvers Savings Bank
(age 75) (from 3/97 to 12/03); Prior threto
a Partner, Arthur Andersen & Co.
- -----------------------------------------------------------------------------------------------------------------------------
Michael A. Diorio, CPA Since 1988 Trustee Executive Director, Milford 5 Director,
11 Calvin Drive Housing Authority (since 11/04); Milford
Milford, MA 01757 Town Accountant, Town of National
(age 60) Canton, MA (from 3/01 to 10/04); Bank & Trust
CPA in private practice (from since 1996
6/99 to 3/01), Formerly, a Partner,
Diorio, Hudson & Pavento, P.C.
- -----------------------------------------------------------------------------------------------------------------------------
OFFICERS:
- -----------------------------------------------------------------------------------------------------------------------------
Wayne M. Grzecki Since 1996 President President, Weston Financial Director,
40 William Street, Group, Inc.; President of Weston
Suite 100 Weston Securities Corporation. Financial
Wellesley, MA 02481 Group, Inc.
(age 54) and Weston
Securities
Corporation
- -----------------------------------------------------------------------------------------------------------------------------
Ronald A. Sugameli Since 1997 Vice Managing Director,
40 William Street, President Weston Financial Group, Inc.;
Suite 100 Vice President of
Wellesley, MA 02481 Weston Securities Corporation.
(age 53)
- -----------------------------------------------------------------------------------------------------------------------------
37
BOARD OF TRUSTEES AND OFFICERS (UNAUDITED)
(CONTINUED)
=============================================================================================================================
PRINCIPAL OCCUPATION(S)
NAME, POSITION(S) DURING PAST 5 YEARS
ADDRESS LENGTH OF HELD WITH AND DIRECTORSHIPS OF
AND AGE TIME SERVED NEW CENTURY PUBLIC COMPANIES
- -----------------------------------------------------------------------------------------------------------------------------
Nicole M. Tremblay, Esq. Since 2002 CFO, Treasurer, Vice President, Chief Compliance
40 William Street, Chief Officer, Weston Financial Group,
Suite 100 Compliance Inc.; Vice President, Chief Compliance
Wellesley, MA 02481 Officer and Officer, and General Securities Principal
(age 31) Secretary of Weston Securities Corporation
(Since 11/02); prior thereto Assistant
Counsel, GoldK, Inc. (from 5/02 to 10/02);
Consultant, Allmerica Financial Life
Insurance & Annuity Co. (from 3/02
to 5/02); and Compliance Review Officer,
Sun Life Financial (from 1/96 to 2/02)
- -----------------------------------------------------------------------------------------------------------------------------
Susan K. Arnold Since 1998 Assistant Vice President and Senior
40 William Street, Treasurer Financial Counselor,
Suite 100 Weston Financial Group, Inc.
Wellesley, MA 02481
(age 46)
- -----------------------------------------------------------------------------------------------------------------------------
Clara Prokup Since 1998 Assistant Investment Operations Specialist,
40 William Street, Secretary Weston Financial Group, Inc.
Suite 100 since 1998; prior thereto,
Wellesley, MA 02481 Controller, Weston Financial
(age 58) Group, Inc.
- -----------------------------------------------------------------------------------------------------------------------------
* Douglas A. Biggar is considered to be an "interested person" of the Company
within the meaning of Section 2(a)(19) of the Investment Company Act of
1940, as amended. Mr. Biggar is an interested person because he is an
officer of the Advisor and Distributor.
Additional information about members of the Board of Trustees and executive
officers is available in the Statement of Additional Information (SAI). To
obtain a free copy of the SAI, please call 1-888-639-0102.
38
NEW CENTURY PORTFOLIOS
ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
================================================================================
We believe it is important for you to understand the impact of costs on your
investment. As a shareholder of the Portfolios, you may incur two types of
costs: (1) transaction costs, including redemption fees; and (2) ongoing costs,
including management fees, distribution (i.e. 12b-1) fees and other fund
expenses. The following examples are intended to help you understand ongoing
costs (in dollars) of investing in the Portfolios and to compare these costs
with the ongoing costs of investing in other mutual funds.
A fund's expenses are expressed as a percentage of its average net assets. This
figure is known as the expense ratio. The examples in the tables below are based
on an investment of $1,000 made at the beginning of the period shown and held
for the entire period.
The table below illustrates each Portfolio's costs in two ways:
ACTUAL FUND RETURN - This section helps you to estimate the actual expenses that
you paid over the period. The "Ending Account Value" shown is derived from each
Portfolio's actual return, and the third column shows the dollar amount of
operating expenses that would have been paid by an investor who started with
$1,000 in the Portfolios. You may use the information here, together with the
amount you invested, to estimate the expenses that you paid over the period.
To do so, simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
given for the Portfolios under the heading "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN - This section is intended to help you compare the
Portfolios' costs with those of other mutual funds. It assumes that each
Portfolio had an annual return of 5% before expenses during the period shown,
but that the expense ratio is unchanged. In this case, because the return used
is not the Portfolios' actual returns, the results do not apply to your
investment. The example is useful in making comparisons because the Securities
and Exchange Commission requires all mutual funds to calculate expenses based on
a 5% return. You can assess each Portfolio's costs by comparing this
hypothetical example with the hypothetical examples that appear in shareholder
reports of other funds.
Note that expenses shown in the table are meant to highlight and help you
compare ongoing costs only. The Portfolios do not charge front-end sales loads.
However, a redemption fee of 2% is applied on the sale of shares of the
Portfolios held for less than 30 days.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions.
39
NEW CENTURY PORTFOLIOS ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED) (CONTINUED)
================================================================================
More information about the Portfolios' expenses, including recent annual expense
ratios, can be found in this report. For additional information on operating
expenses and other shareholder costs, please refer to the Portfolios'
prospectus.
NEW CENTURY CAPITAL PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2005 Oct. 31, 2005 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,093.00 $ 7.12
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,018.40 $ 6.87
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Capital Portfolio's annualized
expense ratio of 1.35% for the period, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
NEW CENTURY BALANCED PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2005 Oct. 31, 2005 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,056.20 $ 7.05
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,018.35 $ 6.92
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Balanced Portfolio's annualized
expense ratio of 1.36% for the period, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
NEW CENTURY AGGRESSIVE PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2005 Oct. 31, 2005 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,138.40 $ 8.08
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,017.64 $ 7.63
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Aggressive Portfolio's annualized
expense ratio of 1.50% for the period, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
40
NEW CENTURY PORTFOLIOS
ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
(CONTINUED)
================================================================================
NEW CENTURY INTERNATIONAL PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2005 Oct. 31, 2005 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,123.30 $ 8.03
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,017.64 $ 7.63
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century International Portfolio's annualized
expense ratio of 1.50% for the period, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2005 Oct. 31, 2005 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,058.20 $ 5.50
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,019.86 $ 5.40
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Alternative Strategies Portfolio's
annualized expense ratio of 1.06% for the period, multiplied by the average
account value over the period, multiplied by 184/365 (to reflect the
one-half year period).
FEDERAL TAX INFORMATION (UNAUDITED)
================================================================================
In accordance with federal tax requirements, the following provides shareholders
with information concerning distributions from ordinary income and net realized
gains made by the Portfolios during the year ended October 31, 2005. During the
year ended October 31, 2005, the New Century International Portfolio and the New
Century Alternative Strategies Portfolio paid long-term capital gains
distributions of $789,174 and $1,234,575, respectively. For the fiscal year
ended October 31, 2005, certain dividends paid by the Portfolios may be subject
to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief
Reconciliation Act of 2003. The New Century Balanced Portfolio and the New
Century Alternative Strategies Portfolio intend to designate up to a maximum
amount of $1,126,169 and $1,190,792, respectively, as taxed at a maximum rate of
15%. As required by federal regulations, complete information will be computed
and reported in conjunction with your 2005 Form 1099-DIV.
41
TRUSTEES APPROVAL OF INVESTMENT ADVISORY
AGREEMENTS (UNAUDITED)
================================================================================
Weston Financial Group, Inc. ("Weston") serves as the investment advisor to each
Portfolio of the Trust. The Board of Trustees most recently approved the
investment advisory agreements (collectively, the "New Advisory Agreements")
with Weston at a Special Meeting of the Board of Trustees held on June 17, 2005.
The New Advisory Agreements were being approved in connection with a change in
control of Weston (hereinafter, the "Transaction") whereby the outstanding
shares of capital stock of Weston and its subsidiaries were being acquired by
Washington Trust Bancorp, Inc., ("Washington Trust"). The shareholders of each
Portfolio approved the New Advisory Agreements on August 17, 2005. The
Transaction occurred on August 31, 2005. The New Advisory Agreements will
continue until October 31, 2006.
The Board of Trustees decided to approve the New Advisory Agreements based upon
their evaluation of: (i) the Transaction with Washington Trust and its impact on
Weston; (ii) the nature, extent and quality of the services provided; (iii) the
performance of each Portfolio; and (iv) the costs of the services provided and
the profitability of each entity from its relationship with the Portfolios.
It was noted that during the Board's consideration of the factors listed above,
different trustees gave different weight to different items. In general, the
trustees considered it to be significant that the proposed investment advisory
arrangements would assure a continuity of relationships to service the
Portfolios because of Weston's familiarity with each Portfolio, its investment
objectives and policies, its portfolio composition, and the Trust's policies
regarding matters such as compliance issues, the Trust's code of ethics,
brokerage allocation, record-keeping systems, and other operational issues. The
Board specifically noted the long-standing and cooperative working relationship
between Weston and the Trust. In reviewing information about Washington Trust
and the Transaction, the trustees considered it significant that the Transaction
could result in increased marketing and distribution opportunities for the Trust
as it gained access to Washington Trust's network of clients and distribution
channels.
THE CHANGE IN CONTROL TRANSACTION AND ITS IMPACT ON WESTON: The trustees
received and reviewed detailed information about Washington Trust and the
Transaction. The trustees also reviewed a memorandum from independent counsel
regarding their responsibilities in evaluating the New Advisory Agreements. The
trustees also met with key people at Washington Trust who would be involved with
Weston after the Transaction, and performed due diligence on-site at Washington
Trust's principal offices in Rhode Island, noting the good reputation of the
bank in the community.
During their deliberations, the trustees considered the structure and
organization of Weston, both prior to and after the Transaction. They considered
that Weston's key personnel, including but not limited to Messrs. Biggar,
Robbat, Grzecki and Sugameli, would continue to be employed by Weston after the
Transaction. The trustees also noted that Weston intends to employ substantially
all of its current personnel, including the portfolio managers, Messrs. Grzecki
and Sugameli, and the personnel at Weston who currently service the Trust and
its Portfolios. Most significantly, the Board of Trustees focused on the
commitment by the officers of Washington Trust to the continuity of the values
and relationships that have existed with Weston during the course of its
relationship with the Trust. The five trustees concluded that the continued
operation of Weston under the Washington Trust umbrella, particularly with the
42
TRUSTEES APPROVAL OF INVESTMENT ADVISORY AGREEMENTS
(UNAUDITED) (CONTINUED)
================================================================================
additional resources that might be available to the combined entity, would
provide consistency and continuity to the Trust and its shareholders, and could
offer a potential for opportunities for growth that could benefit shareholders.
NATURE, QUALITY AND EXTENT OF SERVICES: The trustees considered the terms and
conditions of each New Advisory Agreement, noting that the terms and conditions
were the same as in the existing advisory agreements, including the provision
for fees. The trustees also considered the nature, quality and scope of the
investment advisory services that have been provided to the Portfolios by Weston
and which are expected to continue to be provided after the Transaction by
substantially the same personnel.
PERFORMANCE OF THE PORTFOLIOS: The trustees considered the performance results
of each of the Portfolios over various time periods. They reviewed information
comparing each Portfolio's performance with the performance of comparable funds
and with each Portfolio's benchmark. The trustees noted that for the
year-to-date period ended May 31, 2005, the Aggressive and International
Portfolios had each outperformed their respective benchmarks and that the
Capital, Balanced and the Alternative Strategies Portfolios had each slightly
underperformed their respective benchmarks. In general, the trustees noted that
the Portfolios had been performing competitively in the industry and were
pleased with their results.
COSTS OF SERVICES AND PROFITS REALIZED BY WESTON: The trustees also considered
the fees paid by each Portfolio directly and in relation to similar funds within
the industry, and the expense limitation agreements with respect to the
Portfolios. The trustees were advised that the investment advisory fee charged
by the Alternative Strategies Portfolio was comparable to the investment
advisory fees charged by other similar funds within the industry and that the
investment advisory fees charged by the other Portfolios were higher than other
similar funds within the industry; however, the Capital, Balanced, Aggressive
and International Portfolios did offer a breakpoint for assets in excess of $100
million that could lower the investment advisory fees. The trustees observed
that the fees and expenses of the Portfolios were deemed to be fair and
reasonable based on the information provided at the Special Meeting with respect
to other funds in the industry. The trustees also noted that Weston has
committed to continue the current expense limitation agreements for at least two
years after the Transaction.
The trustees also reviewed and discussed other aspects of Weston, such as the
profitability of the investment advisor, and the historical relationship between
the Trust and Weston, including the benefits each party received from such
long-term relationship. The trustees noted the fact that Weston and its
affiliates received other compensation from the relationship such as fees as
administrator and fees under a distribution (Rule 12b-1) plan. The trustees also
noted that two of the current trustees, Messrs. Biggar and Robbat, were
affiliates of Weston (and the Trust's distributor) and would benefit by the
approval of the investment advisory, administration and underwriting agreements,
as well as the Transaction . ECONOMIES OF SCALE AND OTHER FUND COMPARISONS: In
their deliberations, the trustees did not consider the extent to which economies
of scale would be realized as a Fund grows. The Board did not rely upon
comparisons of the services to be rendered and the amounts to be paid under the
contract with those under other investment advisory
43
TRUSTEES APPROVAL OF INVESTMENT ADVISORY
AGREEMENTS (UNAUDITED) (CONTINUED)
================================================================================
contracts, such as contracts of the same and other investment advisors with
other registered investment companies or other types of clients (e.g., pension
funds and other institutional investors). These factors were considered not to
be relevant in a situation where the trustees were determining whether to
approve new agreements with an existing entity on substantially the same terms
and conditions as the existing advisory agreements. Such factors would be
relevant to considering and approving new investment advisory agreements with
other investment advisory entities.
SPECIAL MEETING OF THE SHAREHOLDERS
(UNAUDITED)
================================================================================
A Special Meeting of Shareholders of the Trust (the "Special Meeting") was held
on August 17, 2005, pursuant to notice duly given to all shareholders of record
at the close of business on June 20, 2005. At the Special Meeting, shareholders
were asked to approve new Investment Advisory Agreements between the Trust, on
behalf of each Portfolio and Weston Financial Group, Inc. The results of the
shareholder vote were as follows:
- --------------------------------------------------------------------------------
NAME FOR THE AGAINST THE
OF SERIES RESOLUTION RESOLUTION ABSTAIN TOTAL
- --------------------------------------------------------------------------------
New Century Capital Portfolio 4,513,615 11,992 10,593 4,536,200
- --------------------------------------------------------------------------------
New Century Balanced Portfolio 3,642,177 6,611 11,931 3,660,719
- --------------------------------------------------------------------------------
New Century Aggressive Portfolio 430,789 0 0 430,789
- --------------------------------------------------------------------------------
New Century International Portfolio 2,108,760 0 3,275 2,112,035
- --------------------------------------------------------------------------------
New Century Alternative
Strategies Portfolio 4,048,647 0 7,642 4,056,289
- --------------------------------------------------------------------------------
Shareholders of each Portfolio approved the New Investment Advisory Agreements.
44
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INVESTMENT ADVISOR AND ADMINISTRATOR
Weston Financial Group, Inc.
Wellesley, MA
DISTRIBUTOR
Weston Securities Corporation
Wellesley, MA
COUNSEL
Greenburg Traurig, LLP
Philadelphia, PA
INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM
Briggs, Bunting & Dougherty, LLP
Philadelphia, PA
TRANSFER AGENT
Ultimus Fund Solutions, LLC
Cincinnati, OH
CUSTODIAN
U.S. Bank, N.A.
Cincinnati, OH
This report and the financial statements contained herein are submitted for the
general information of the shareholders of the Portfolios. This report is
authorized for distribution to prospective investors in the Portfolios only if
preceded or accompanied by an effective Prospectus which contains details
concerning the management fee expense and other pertinent information.
A description of the policies and procedures that the Portfolios use to
determine how to vote proxies relating to portfolio securities is available
without charge upon request by calling toll-free 1-888-639-0102, or on the
Securities and Exchange Commission's (SEC) website at http://www.sec.gov.
Information regarding how the Portfolios voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
without charge upon request by calling toll-free 1-888-639-0102, or on the SEC's
website at http://www.sec.gov.
The Portfolios file a complete listing of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The Portfolios'
Form N-Q is available without charge upon request by calling 1-888-639-0102, or
on the SEC's website at http://www.sec.gov. The Portfolios' Form N-Q may be
reviewed and copied at the SEC's Public Reference Room in Washington, DC, or by
calling 1-800-SEC-0330.
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ITEM 2. CODE OF ETHICS.
As of the end of the period covered by this 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. Pursuant to Item 12(a)(1), a
copy of registrant's code of ethics is filed as an exhibit to this Form N-CSR.
During the period covered by this report, the code of ethics has not been
amended, and the registrant has not granted any waivers, including implicit
waivers, from the provisions of the code of ethics.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of trustees has determined that the registrant has at
least one audit committee financial expert serving on its audit committee. The
name of the audit committee financial expert is Roger Eastman. Mr. Eastman is
"independent" for purposes of this Item.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) AUDIT FEES. The aggregate fees billed for professional services
rendered by the principal accountant for the audit of the registrant's
annual financial statements or for services that are normally provided
by the accountant in connection with statutory and regulatory filings
or engagements were $45,000 with respect to the registrant's fiscal
year ended October 31, 2005. The aggregate fees billed for
professional services rendered by the principal accountant for the
audit of the registrant's annual financial statements or for services
that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements were $42,000 with
respect to the registrant's fiscal year ended October 31, 2004.
(b) AUDIT-RELATED FEES. No fees were billed in either 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.
(c) TAX FEES. The aggregate fees billed for professional services rendered
by the principal accountant for tax compliance, tax advice, and tax
planning were $7,500 and $4,500 with respect to the registrant's
fiscal years ended October 31, 2005 and October 31, 2004,
respectively. The services comprising these fees are the preparation
of the registrant's federal income and excise tax returns.
(d) ALL OTHER FEES. No fees were billed in either 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.
(e)(1) The audit committee has adopted pre-approval policies and procedures
described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.
(e)(2) None of the services described in paragraph (b) through (d) of this
Item were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Less than 50% of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the most
recent fiscal year were attributed to work performed by persons other
than the principal accountant's full-time, permanent employees.
(g) During the fiscal years ended October 31, 2005 and October 31, 2004,
aggregate non-audit fees of $7,500 and $4,500, respectively, were
billed by the registrant's accountant for services rendered to the
registrant. During the fiscal years ended October 31, 2005 and October
31, 2004, aggregate non-audit fees of $7,596 and $3,300, respectively,
were billed by the registrant's accountant for services 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.
(h) The principal accountant has not provided any non-audit services that
were not previously approved 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 investment adviser that provides ongoing services to
the registrant.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable [schedule filed with Item 1]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has a standing nominating committee responsible for the selection
and nomination to serve as trustees of the registrant. Although the nominating
committee expects to be able to find an adequate number of qualified candidates
to serve as trustees, the nominating committee is willing to consider
nominations received from shareholders. Shareholders wishing to submit a
nomination should do so by notifying the Secretary of the registrant, in
writing, at the following address: 40 William Street, Suite 100, Wellesley,
Massachusetts 02481-3902.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) as of a date within 90 days of the filing date of this report, the
registrant's principal executive officer and principal financial officer
have concluded that such disclosure controls and procedures are reasonably
designed and are operating effectively to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is
made known to them by others within those entities, particularly during the
period in which this report is being prepared, and that the information
required in filings on Form N-CSR is recorded, processed, summarized, and
reported on a timely basis.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940) that occurred during the registrant's most recent fiscal half-year
(the registrant's second fiscal half-year in the case of an annual report)
that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
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: Attached hereto
(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(a)): 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) Certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)): Attached hereto
Exhibit 99.CODE ETH Code of Ethics
Exhibit 99.CERT Certifications required by Rule 30a-2(a) under the Act
Exhibit 99.906CERT Certifications required by Rule 30a-2(b) under the Act
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) New Century Portfolios
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By (Signature and Title)* /s/ Wayne M. Grzecki
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Wayne M. Grzecki, President
Date January 4, 2006
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Wayne M. Grzecki
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Wayne M. Grzecki, President
Date January 4, 2006
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By (Signature and Title)* /s/ Nicole M. Tremblay
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Nicole M. Tremblay, Treasurer
Date January 4, 2006
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* Print the name and title of each signing officer under his or her signature.