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OMB APPROVAL
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Expires: September 30, 2007
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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, 2006
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Date of reporting period: April 30, 2006
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Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
================================================================================
[GRAPHIC OMITTED]
NEW CENTURY
PORTFOLIOS
NEW CENTURY CAPITAL
NEW CENTURY BALANCED
NEW CENTURY OPPORTUNISTIC
NEW CENTURY INTERNATIONAL
NEW CENTURY ALTERNATIVE STRATEGIES
SEMI-ANNUAL REPORT
SIX MONTHS ENDED APRIL 30, 2006
(UNAUDITED)
40 William Street, Suite 100, Wellesley MA 02481 781-239-0445 888-639-0102 Fax 781-237-1635
================================================================================
CONTENTS
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER 1
PORTFOLIO INFORMATION 3-7
New Century Portfolios
Statements of Assets and Liabilities 8
Statements of Operations 9
Statements of Changes in Net Assets 10-12
Financial Highlights 13-17
Portfolios of Investments 18-26
Notes to Financial Statements 27-33
About Your Portfolio's Expenses 34-36
LETTER TO SHAREHOLDERS JUNE 2006
================================================================================
Dear Fellow Shareholders:
I am pleased to present our Semi-Annual Report for the six-month period ended
April 30, 2006. This Report presents important financial information for each of
the New Century Portfolios. I also invite you to visit our website at
WWW.NEWCENTURYPORTFOLIOS.COM for additional information.
During the six-month period ended April 30, 2006, the New Century Capital
Portfolio increased its exposure to the growth, international and energy
sectors, while reducing its position in the growth and income sector. During the
period, the New Century Capital Portfolio gained 14.76% as compared to the S&P
500(R) Composite Index which gained 9.63% and the MSCI EAFE Index which gained
22.89%. Although subject to greater volatility, we continue to believe that
foreign markets are more attractive than US markets at this time. We will
continue our allocation to the international sector.
The New Century Balanced Portfolio increased its exposure to the growth and
international equities, energy, and foreign fixed income sectors, while reducing
its allocation in the high-yield and government bond sectors. During the period,
the New Century Balanced Portfolio gained 9.90%, as compared to the S&P 500(R)
Composite Index which gained 9.63% and the Lehman Brothers Intermediate
Government/Credit Index which gained 0.73%.
The New Century Opportunistic Portfolio increased its exposure to the energy,
small cap and emerging market sectors while reducing the large-cap sector.
During this period, New Century Opportunistic Portfolio gained 13.07% as
compared to the Russell 3000 Growth Index which gained 8.19%. During the period,
the Board of Trustees approved a change in name for this Portfolio from the
"Aggressive Portfolio" to the "Opportunistic Portfolio". This change in name was
made to better describe the New Century Opportunistic Portfolio and the types of
investments it makes, and does not reflect any change in the investment
objectives, policies or strategies of this Portfolio.
The New Century International Portfolio increased its positions in the Americas
(non-US), Asia/Pacific and the emerging markets sectors, while reducing
positions in Europe. In addition, the Portfolio increased its positions in China
and India in anticipation of continued economic growth and development in these
regions. During the period, the New Century International Portfolio gained
25.60%. The international equity markets, as measured by the MSCI EAFE Index,
increased 22.89%. The New Century Alternative Strategies Portfolio increased its
allocation to the global macro category, decreased its allocation to the asset
allocation category and folded the equity market neutral category into the
long/short equity category. The New Century Alternative Strategies Portfolio
maintained diversified positions in ten distinct investment categories. New
Century Alternative Strategies Portfolio gained 9.30% during the period, as
compared to the Lehman Brothers Intermediate Government/Credit Index, which
gained 0.73% and the S&P 500(R) Composite Index which gained 9.63%.
1
Although market performance has been strong, increasing interest rates and
energy prices, along with a sluggish housing market, may finally take its toll
on the financial markets. As we approach the second half of 2006, we are
witnessing, what we believe to be, a market correction. Although the correction
may have several causes, market fundamentals remain sound. Accordingly, we are
not planning to rebalance the Portfolios dramatically at this time. We will,
however, continue to monitor the dynamics of the markets and to reposition the
Portfolios accordingly.
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.
New Century is committed to its shareholders and appreciates your selecting New
Century as part of your long-term investment strategy.
Sincerely,
/s/ Wayne M. Grzecki
Wayne M. Grzecki
President
2
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2006 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Growth Funds - 34.4%
[GRAPHIC OMITTED] Growth and Income Funds - 32.0%
Small Company Funds - 18.0%
Foreign Stock Funds - 15.0%
Cash Equivalents - 0.6%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------ ---------------
Hotchkis & Wiley Large Cap Value - Class A 7.0%
American Growth Fund of America - Class A 6.9%
William Blair Small Cap Growth - Class I 6.8%
Calamos Growth - Class A 6.8%
Marsico 21st Century 6.7%
iShares MSCI Emerging Markets Index 5.5%
Fidelity Capital Appreciation 5.3%
iShares S&P MidCap 400/BARRA Value Index 4.6%
Powershares Dynamic Market 4.5%
Goldman Sachs Growth Opportunities - Class A 4.1%
3
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2006 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Growth and Income Funds - 33.0%
[GRAPHIC OMITTED] Growth Funds - 12.3%
Small Company Funds - 12.0%
High Yield Bond Funds - 10.5%
Foreign Stock Funds - 9.9%
Worldwide Bond Funds - 5.8%
Convertible Security Funds - 5.2%
Corporate Bond Funds - 4.8%
Government Bond Funds - 3.1%
High Quality Bond Funds - 2.8%
Cash Equivalents - 0.6%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------ ---------------
Hotchkis & Wiley Large Cap Value - Class A 8.0%
Fidelity Advisor High Income Advantage - Class I 6.0%
Dodge & Cox Stock 4.9%
Loomis Sayles Bond - Institutional Class 4.8%
iShares MSCI EAFE Index 4.6%
iShares S&P 500 Index 4.6%
Powershares Dynamic Market 4.6%
MainStay High Yield Corporate Bond - Class A 4.6%
William Blair Small Cap Growth Fund - Class I 3.7%
American Funds AMCAP - Class A 3.5%
4
NEW CENTURY OPPORTUNISTIC PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2006 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Sector Funds - 62.1%
[GRAPHIC OMITTED] Mid-Cap Funds - 20.8%
Small-Cap Funds - 11.3%
Large-Cap Funds - 3.4%
Cash Equivalents - 2.4%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------ ---------------
iShares Goldman Sachs Networking Index 10.2%
iShares MSCI Emerging Markets Index 9.8%
Technology Select Sector SPDR 8.1%
iShares Goldman Sachs Natural Resources Index 7.8%
iShares Dow Jones U.S. Energy Sector Index 6.7%
iShares Nasdaq Biotechnology Index 6.6%
Calamos Growth - Class A 5.8%
Perritt Micro Cap Opportunities 5.2%
S&P MidCap 400 Depositary Receipts 5.0%
Fidelity Select Wireless 4.8%
5
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2006 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Asia/Pacific Funds - 27.2%
[GRAPHIC OMITTED] Diversified Funds - 25.4%
Europe Funds - 19.6%
Americas Funds - 15.1%
Emerging Markets Funds - 11.9%
Cash Equivalents - 0.8
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------- ---------------
iShares S&P Latin American 40 Index 6.5%
iShares MSCI Emerging Markets Index 6.1%
iShares MSCI Austria Index 5.5%
Janus Overseas 5.3%
iShares MSCI EAFE Index 4.7%
T. Rowe Price Emerging Europe & Mediterranean 4.5%
Eaton Vance Greater India - Class A 4.1%
Oppenheimer International Small Company - Class A 3.8%
Fidelity Japan 3.7%
iShares MSCI Canada Index 3.7%
6
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2006 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Long/Short Equity Funds - 18.5%
[GRAPHIC OMITTED] Global Macro Funds - 13.5%
Merger Arbitrage Funds - 13.1%
Asset Allocation Funds - 10.4%
Natural Resources Funds - 10.1%
Options/Hedged Funds - 7.4%
Real Estate Funds - 7.3%
High Yield Funds - 6.9%
Deep Value/Distressed Securities Funds - 6.0%
Convertible Arbitrage Funds - 5.0%
Corporate Notes - 0.5%
Cash Equivalents - 1.3%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
------------------------------------------------ ---------------
First Eagle Global - Class A 7.2%
Calamos Market Neutral - A Shares 5.0%
Hussman Strategic Growth 4.9%
Merger Fund (The) 4.6%
Gateway 4.5%
Enterprise Mergers and Acquisitions - Class A 4.3%
Schwab Hedged Equity 3.8%
PIMCO Commodity Real Return Strategy - Class A 3.6%
Third Avenue Real Estate Value 3.4%
FPA Crescent - Class I 3.4%
7
NEW CENTURY PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2006 (UNAUDITED)
=============================================================================================================================
NEW CENTURY
NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities:
At acquisition cost .................. $ 90,272,405 $ 68,646,347 $ 10,998,717 $ 72,836,369 $ 77,402,734
============= ============= ============= ============= =============
At value (Note 1A) ................... $ 124,825,114 $ 84,328,780 $ 13,228,110 $ 99,078,556 $ 89,509,438
Dividends receivable ................... 2,747 1,746 800 3,605 9,505
Receivable for capital shares sold ..... 18,285 1,325 3,291 213,153 12,631
Other assets ........................... 10,243 7,822 789 7,325 8,177
------------- ------------- ------------- ------------- -------------
TOTAL ASSETS ......................... 124,856,389 84,339,673 13,232,990 99,302,639 89,539,751
------------- ------------- ------------- ------------- -------------
LIABILITIES
Payable to Advisor (Note 2) ............ 99,504 70,810 6,424 87,614 43,767
Payable to Distributor (Note 3) ........ 42,742 6,243 2,914 17,903 --
Payable for capital shares redeemed .... 20,395 1,000 -- -- 15,000
Other accrued expenses and liabilities . 24,438 17,759 6,449 13,922 6,753
------------- ------------- ------------- ------------- -------------
TOTAL LIABILITIES .................... 187,079 95,812 15,787 119,439 65,520
------------- ------------- ------------- ------------- -------------
NET ASSETS ............................... $ 124,669,310 $ 84,243,861 $ 13,217,203 $ 99,183,200 $ 89,474,231
============= ============= ============= ============= =============
Net assets consist of:
Paid-in capital ........................ $ 95,271,900 $ 69,802,311 $ 12,005,424 $ 70,796,418 $ 75,650,400
Accumulated net investment income (loss) 55,747 (48,973) (21,524) 21,229 64,065
Accumulated net realized gains (losses)
on investments ....................... (5,211,046) (1,191,910) (996,090) 2,123,366 1,653,062
Unrealized appreciation of investments . 34,552,709 15,682,433 2,229,393 26,242,187 12,106,704
------------- ------------- ------------- ------------- -------------
Net assets ............................... $ 124,669,310 $ 84,243,861 $ 13,217,203 $ 99,183,200 $ 89,474,231
============= ============= ============= ============= =============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) .......................... 7,222,773 5,909,971 1,340,368 6,573,733 7,059,102
============= ============= ============= ============= =============
Net asset value, offering price and
redemption price per share(a) .......... $ 17.26 $ 14.25 $ 9.86 $ 15.09 $ 12.68
============= ============= ============= ============= =============
(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.
8
NEW CENTURY PORTFOLIOS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2006 (UNAUDITED)
=============================================================================================================================
NEW CENTURY
NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends .............................. $ 625,493 $ 1,259,353 $ 35,831 $ 874,068 $ 1,627,673
------------- ------------- ------------- ------------- -------------
EXPENSES
Investment advisory fees (Note 2) ...... 563,771 403,321 48,917 401,376 310,173
Distribution costs (Note 3) ............ 75,996 60,190 11,474 88,303 31,127
Accounting fees ........................ 20,889 18,999 15,442 19,019 19,157
Legal and audit fees ................... 26,891 19,152 4,101 19,102 19,739
Administration fees (Note 2) ........... 20,258 14,932 4,526 14,814 15,191
Transfer agent fees .................... 10,500 10,500 10,500 10,500 10,500
Custody fees ........................... 10,017 7,151 2,512 9,975 9,159
Trustees' fees and expenses (Note 2) ... 6,516 4,459 582 4,823 4,620
Postage and supplies ................... 6,176 4,593 2,502 3,414 3,747
Insurance expense ...................... 3,153 2,018 157 1,050 1,814
Other expenses ......................... 28,959 8,164 3,142 7,710 2,801
------------- ------------- ------------- ------------- -------------
Total expenses ....................... 773,126 553,479 103,855 580,086 428,028
Less fees waived and/or expenses
reimbursed by the Advisor (Note 2) ... -- -- (30,480) (2,545) --
Plus previously waived investment
advisory fees and expense
reimbursements recouped
by the Advisor (Note 2) .............. -- -- -- 24,522 --
------------- ------------- ------------- ------------- -------------
Net expenses ......................... 773,126 553,479 73,375 602,063 428,028
NET INVESTMENT INCOME (LOSS) ............. (147,633) 705,874 (37,544) 272,005 1,199,645
------------- ------------- ------------- ------------- -------------
REALIZED AND UNREALIZED GAINS
ON INVESTMENTS
Net realized gains on investments ...... 538,174 524,608 174,834 1,355,061 522,350
Capital gain distributions from regulated
investment companies ................. 3,439,624 1,554,734 159,314 819,905 1,995,188
Net change in unrealized appreciation/
(depreciation) on investments ........ 12,314,867 4,826,414 766,830 15,626,047 3,625,208
------------- ------------- ------------- ------------- -------------
NET REALIZED AND UNREALIZED
GAINS ON INVESTMENTS ................... 16,292,665 6,905,756 1,100,978 17,801,013 6,142,746
------------- ------------- ------------- ------------- -------------
NET INCREASE IN NET
ASSETS FROM OPERATIONS ................. $ 16,145,032 $ 7,611,630 $ 1,063,434 $ 18,073,018 $ 7,342,391
============= ============= ============= ============= =============
See accompanying notes to financial statements.
9
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
=======================================================================================================================
NEW CENTURY NEW CENTURY
CAPITAL PORTFOLIO BALANCED PORTFOLIO
------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, 2006 OCTOBER 31, APRIL 30, 2006 OCTOBER 31,
(UNAUDITED) 2005 (UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) ................... $ (147,633) $ (628,007) $ 705,874 $ 855,815
Net realized gains from
security transactions ........................ 538,174 2,892,881 524,608 1,751,541
Capital gain distributions from regulated
investment companies ......................... 3,439,624 1,955,220 1,554,734 1,128,719
Net change in unrealized appreciation/
(depreciation) on investments ................ 12,314,867 8,395,507 4,826,414 2,492,528
------------- ------------- ------------- -------------
Net increase in net assets from operations ....... 16,145,032 12,615,601 7,611,630 6,228,603
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) ........... -- -- (1,111,490) (1,126,169)
From net realized gains on security
transactions (Note 1E) ....................... -- -- -- --
------------- ------------- ------------- -------------
Net decrease in net assets from
distributions to shareholders .................. -- -- (1,111,490) (1,126,169)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ...................... 7,456,730 6,701,234 2,893,591 4,765,588
Net asset value of shares issued in reinvestment
of distributions to shareholders ............. -- -- 1,066,079 1,081,941
Payments for shares redeemed ................... (9,510,090) (11,998,943) (3,343,518) (8,149,800)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets from
capital share transactions ..................... (2,053,360) (5,297,709) 616,152 (2,302,271)
------------- ------------- ------------- -------------
TOTAL INCREASE IN NET ASSETS ..................... 14,091,672 7,317,892 7,116,292 2,800,163
NET ASSETS
Beginning of period ............................ 110,577,638 103,259,746 77,127,569 74,327,406
------------- ------------- ------------- -------------
End of period .................................. $ 124,669,310 $ 110,577,638 $ 84,243,861 $ 77,127,569
============= ============= ============= =============
ACCUMULATED NET INVESTMENT
INCOME (LOSS) .................................. $ 55,747 $ -- $ (48,973) $ 188,771
============= ============= ============= =============
CAPITAL SHARE ACTIVITY
Sold ........................................... 463,972 461,564 211,478 368,469
Reinvested ..................................... -- -- 79,499 83,382
Redeemed ....................................... (595,242) (825,738) (244,088) (630,609)
------------- ------------- ------------- -------------
Net increase (decrease) in shares outstanding .. (131,270) (364,174) 46,889 (178,758)
Shares outstanding, beginning of period ........ 7,354,043 7,718,217 5,863,082 6,041,840
------------- ------------- ------------- -------------
Shares outstanding, end of period .............. 7,222,773 7,354,043 5,909,971 5,863,082
============= ============= ============= =============
See accompanying notes to financial statements.
10
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
=======================================================================================================================
NEW CENTURY NEW CENTURY
OPPORTUNISTIC PORTFOLIO INTERNATIONAL PORTFOLIO
------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, 2006 OCTOBER 31, APRIL 30, 2006 OCTOBER 31,
(UNAUDITED) 2005 (UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) ................... $ (37,544) $ (43,755) $ 272,005 $ (237,896)
Net realized gains from
security transactions ........................ 174,834 154,869 1,355,061 84,860
Capital gain distributions from regulated
investment companies ......................... 159,314 76,023 819,905 320,739
Net change in unrealized appreciation/
(depreciation) on investments ................ 766,830 813,977 15,626,047 6,757,089
------------- ------------- ------------- -------------
Net increase in net assets from operations ....... 1,063,434 1,001,114 18,073,018 6,924,792
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) ........... -- -- (297,467) --
From net realized gains on security
transactions (Note 1E) ....................... -- -- (386,707) (789,174)
------------- ------------- ------------- -------------
Net decrease in net assets from
distributions to shareholders .................. -- -- (684,174) (789,174)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ...................... 6,062,722 1,174,899 39,197,571 14,451,797
Proceeds from redemption
fees collected (Note 1B) ..................... -- -- 573 73
Net asset value of shares issued in reinvestment
of distributions to shareholders ............. -- -- 576,069 788,064
Payments for shares redeemed ................... (800,145) (796,827) (2,993,516) (810,565)
------------- ------------- ------------- -------------
Net increase in net assets from capital
share transactions ............................. 5,262,577 378,072 36,780,697 14,429,369
------------- ------------- ------------- -------------
TOTAL INCREASE IN NET ASSETS ..................... 6,326,011 1,379,186 54,169,541 20,564,987
NET ASSETS
Beginning of period ............................ 6,891,192 5,512,006 45,013,659 24,448,672
------------- ------------- ------------- -------------
End of period .................................. $ 13,217,203 $ 6,891,192 $ 99,183,200 $ 45,013,659
============= ============= ============= =============
ACCUMULATED NET INVESTMENT
INCOME (LOSS) .................................. $ (21,524) $ -- $ 21,229 $ --
============= ============= ============= =============
CAPITAL SHARE ACTIVITY
Sold ........................................... 636,716 138,297 3,040,328 1,285,214
Reinvested ..................................... -- -- 44,076 71,773
Redeemed ....................................... (86,874) (103,058) (223,701) (72,073)
------------- ------------- ------------- -------------
Net increase in shares outstanding ............. 549,842 35,239 2,860,703 1,284,914
Shares outstanding, beginning of period ........ 790,526 755,287 3,713,030 2,428,116
------------- ------------- ------------- -------------
Shares outstanding, end of period .............. 1,340,368 790,526 6,573,733 3,713,030
============= ============= ============= =============
See accompanying notes to financial statements.
11
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
===============================================================================================
NEW CENTURY ALTERNATIVE
STRATEGIES PORTFOLIO
-------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2006 OCTOBER 31,
(UNAUDITED) 2005
- -----------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ..................................... $ 1,199,645 $ 704,047
Net realized gains from security transactions ............. 522,350 389,570
Capital gain distributions from regulated investment
companies ............................................... 1,995,188 1,135,285
Net change in unrealized appreciation/(depreciation)
on investments .......................................... 3,625,208 3,303,993
------------- -------------
Net increase in net assets from operations .................. 7,342,391 5,532,895
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) ...................... (2,149,410) (1,190,792)
From net realized gains on security transactions (Note 1E) (455,936) (1,234,575)
------------- -------------
Net decrease in net assets from distributions to shareholders (2,605,346) (2,425,367)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ................................. 8,371,896 22,175,175
Proceeds from redemption fees collected (Note 1B) ......... -- 76
Net asset value of shares issued in reinvestment of
distributions to shareholders ........................... 2,588,651 2,403,567
Payments for shares redeemed ............................ (2,783,738) (2,760,723)
------------- -------------
Net increase in net assets from capital share transactions .. 8,176,809 21,818,095
------------- -------------
TOTAL INCREASE IN NET ASSETS ................................ 12,913,854 24,925,623
NET ASSETS
Beginning of period ....................................... 76,560,377 51,634,754
------------- -------------
End of period ............................................. $ 89,474,231 $ 76,560,377
============= =============
ACCUMULATED NET INVESTMENT INCOME ........................... $ 64,065 $ 181,141
============= =============
CAPITAL SHARE ACTIVITY
Sold ...................................................... 683,818 1,906,069
Reinvested ................................................ 217,169 208,871
Redeemed .................................................. (226,387) (235,708)
------------- -------------
Net increase in shares outstanding ........................ 674,600 1,879,232
Shares outstanding, beginning of period ................... 6,384,502 4,505,270
------------- -------------
Shares outstanding, end of period ......................... 7,059,102 6,384,502
============= =============
See accompanying notes to financial statements.
12
NEW CENTURY CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
==========================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
==========================================================================================================================
SIX MONTHS
ENDED
APRIL 30, YEARS ENDED OCTOBER 31,
2006 ---------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ..... $ 15.04 $ 13.38 $ 12.36 $ 10.09 $ 11.97 $ 18.07
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment loss .................... (0.02) (0.09 (0.12) (0.06) (0.08) (0.10)
Net realized and unrealized gains
(losses) on investments ............... 2.24 1.75 1.14 2.33 (1.80) (4.62)
--------- --------- --------- --------- --------- ---------
Total from investment operations ......... 2.22 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 period ........... $ 17.26 $ 15.04 $ 13.38 $ 12.36 $ 10.09 $ 11.97
========= ========= ========= ========= ========= =========
TOTAL RETURN(a) ........................... 14.76%(b) 12.41 8.25% 22.50% (15.71%) (27.77%)
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ........ $ 124,669 $ 110,578 $ 103,260 $ 95,396 $ 82,310 $ 109,873
========= ========= ========= ========= ========= =========
Ratio of expenses to average net assets(c) 1.32%(e) 1.35% 1.41% 1.45% 1.40% 1.29%
Ratio of net investment loss to
average net assets(d) .................. (0.25%)(e) (0.57) (0.91%) (0.59%) (0.62%) (0.72%)
Portfolio turnover ....................... 12%(e) 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) Not annualized.
(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.
(e) Annualized.
See accompanying notes to financial statements.
13
NEW CENTURY BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
==========================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
==========================================================================================================================
SIX MONTHS
ENDED
APRIL 30, YEARS ENDED OCTOBER 31,
2006 ---------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ..... $ 13.15 $ 12.30 $ 11.52 $ 9.89 $ 11.35 $ 13.64
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income .................. 0.12 0.15 0.11 0.16 0.13 0.23
Net realized and unrealized gains
(losses) on investments ............... 1.17 0.89 0.78 1.67 (1.49) (1.71
--------- --------- --------- --------- --------- ---------
Total from investment operations ......... 1.29 1.04 0.89 1.83 (1.36) (1.48)
--------- --------- --------- --------- --------- ---------
Less distributions:
Distributions from net
investment income ..................... (0.19) (0.19) (0.11) (0.20) (0.10) (0.23)
Distributions from net realized gains .. -- -- -- -- -- (0.58)
--------- --------- --------- --------- --------- ---------
Total distributions ...................... (0.19) (0.19) (0.11) (0.20) (0.10) (0.81)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ........... $ 14.25 $ 13.15 $ 12.30 $ 11.52 $ 9.89 $ 11.35
========= ========= ========= ========= ========= =========
TOTAL RETURN(a) ........................... 9.90%(b) 8.51% 7.75% 18.84% (12.08%) (11.21%)
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ........ $ 84,244 $ 77,128 $ 74,327 $ 70,441 $ 62,755 $ 71,251
========= ========= ========= ========= ========= =========
Ratio of expenses to average net assets(f) 1.37%(e) 1.38% 1.42%(d) 1.45%(c) 1.48% 1.49%
Ratio of net investment income to
average net assets(g) .................. 1.75%(e) 1.12% 0.88%(d) 1.56%(c) 1.19% 1.87%
Portfolio turnover ....................... 16%(e) 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) Not annualized.
(c) 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).
(d) 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).
(e) Annualized.
(f) 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.
(g) 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.
14
NEW CENTURY OPPORTUNISTIC PORTFOLIO*
FINANCIAL HIGHLIGHTS
==========================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
==========================================================================================================================
SIX MONTHS
ENDED
APRIL 30, YEARS ENDED OCTOBER 31,
2006 ---------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ..... $ 8.72 $ 7.30 $ 6.95 $ 5.47 $ 7.37 $ 10.00
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:.
Net investment loss .................... (0.03) (0.06) (0.07) (0.06) (0.07) (0.07)
Net realized and unrealized gains
(losses) on investments. .............. 1.17 1.48 0.42 1.54 (1.83) (2.56)
--------- --------- --------- --------- --------- ---------
Total from investment operations ......... 1.14 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 period ........... $ 9.86 $ 8.72 $ 7.30 $ 6.95 $ 5.47 $ 7.37
========= ========= ========= ========= ========= =========
TOTAL RETURN(a) ........................... 13.07%(b) 19.45% 5.04% 27.06% (25.78%) (26.30%)
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ........ $ 13,217 $ 6,891 $ 5,512 $ 4,866 $ 3,610 $ 1,846
========= ========= ========= ========= ========= =========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees(c) .................... 2.12%(e) 2.56% 2.71% 3.20% 2.95% 5.90%
After expense reimbursement
and waived fees(c) .................... 1.50%(e) 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) .................... (1.38%)(e) (1.80%) (2.27%) (2.73%) (2.50%) (5.35%)
After expense reimbursement
and waived fees(d) .................... (0.76%)(e) (0.74%) (1.06%) (1.03%) (1.05%) (0.95%)
Portfolio turnover ....................... 23%(e) 19% 68% 78% 120% 86%
* Until March 1, 2006, the New Century Opportunistic Portfolio was known as
the "New Century Aggressive Portfolio."
(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) Not annualized.
(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.
(e) Annualized.
See accompanying notes to financial statements.
15
NEW CENTURY INTERNATIONAL PORTFOLIO
FINANCIAL HIGHLIGHTS
==========================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
==========================================================================================================================
SIX MONTHS
ENDED
APRIL 30, YEARS ENDED OCTOBER 31,
2006 ---------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002 2001
- --------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ..... $ 12.12 $ 10.07 $ 8.68 $ 6.52 $ 7.41 $ 10.00
--------- --------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income (loss) ........... 0.05 (0.06) (0.05) (0.03) (0.06) (0.04)
Net realized and unrealized gains
(losses) on investments ............... 3.04 2.42 1.44 2.19 (0.81) (2.55)
--------- --------- --------- --------- --------- ---------
Total from investment operations ......... 3.09 2.36 1.39 2.16 (0.87) (2.59)
--------- --------- --------- --------- --------- ---------
Less distributions:
Distributions from net
investment income ..................... (0.05) -- -- -- (0.02) --
Distributions from net realized gains .. (0.07) (0.31) -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions ...................... (0.12) (0.31) -- -- (0.02) --
--------- --------- --------- --------- --------- ---------
Proceeds from redemption fees collected .. 0.00(a) 0.00(a) -- -- -- --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ........... $ 15.09 $ 12.12 $ 10.07 $ 8.68 $ 6.52 $ 7.41
========= ========= ========= ========= ========= =========
TOTAL RETURN(b) ........................... 25.60%(c) 23.70% 16.01% 33.13% (11.84%) (25.90%)
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ........ $ 99,183 $ 45,014 $ 24,449 $ 15,288 $ 7,655 $ 731
========= ========= ========= ========= ========= =========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees(d) .................... 1.50%(f) 1.55% 1.74% 2.11% 2.54% 10.81%
After expense reimbursement
and waived fees(d) .................... 1.50%(f)(g) 1.50% 1.50% 1.50% 1.50% 1.50%
Ratios of net investment income (loss)
to average net assets:
Before expense reimbursement
and waived fees(e) .................... 0.67%(f) (0.72%) (0.88%) (1.16%) (2.34%) (9.81%)
After expense reimbursement
and waived fees(e) .................... 0.67%(f)(g) (0.67%) (0.64%) (0.55%) (1.30%) (0.50%)
Portfolio turnover ....................... 16%(f) 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) Not annualized.
(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.
(f) Annualized.
(g) Absent the recoupment of fees previously waived and reimbursed by the
Advisor, the ratio of expenses to average net assets would have been
1.43%(f) and the ratio of net investment income to average net assets would
have been 0.74%(f) for the six months ended April 30, 2006 (Note 2).
See accompanying notes to financial statements.
16
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
===============================================================================================================================
SIX MONTHS
ENDED
APRIL 30, PERIODS ENDED OCTOBER 31,
2006 -----------------------------------------------------------------
(UNAUDITED) 2005 2004 2003 2002(a)
- ------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ...... $ 11.99 $ 11.46 $ 10.67 $ 9.12 $ 10.00
--------- --------- --------- --------- ---------
Income (loss) from investment operations:
Net investment income ................... 0.19 0.15 0.14 0.11 0.01
Net realized and unrealized gains
(losses) on investments ............... 0.90 0.87 0.83 1.54 (0.89)
--------- --------- --------- --------- ---------
Total from investment operations .......... 1.09 1.02 0.97 1.65 (0.88)
--------- --------- --------- --------- ---------
Less distributions:
Distributions from net investment income (0.33) (0.24) (0.18) (0.10) --
Distributions from net realized gains ... (0.07) (0.25) -- -- --
--------- --------- --------- --------- ---------
Total distributions ....................... (0.40) (0.49) (0.18) (0.10) --
--------- --------- --------- --------- ---------
Proceeds from redemption fees collected ... -- 0.00(b) -- -- --
--------- --------- --------- --------- ---------
Net asset value, end of period ............ $ 12.68 $ 11.99 $ 11.46 $ 10.67 $ 9.12
========= ========= ========= ========= =========
TOTAL RETURN(d) ............................ 9.30%(c) 9.12% 9.12% 18.20% (8.80%)(c)
========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ......... $ 89,474 $ 76,560 $ 51,635 $ 33,734 $ 19,529
========= ========= ========= ========= =========
Ratios of expenses to average net assets(h) 1.03%(e) 1.06% 1.12% 1.40%(g) 1.49%(e)(f)
Ratios of net investment income to
average net assets(i) ................... 2.90%(e) 1.06% 1.04% 1.06%(g) 0.32%(e)(f)
Portfolio turnover ........................ 12%(e) 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 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 CAPITAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 2006 (UNAUDITED)
======================================================================================
INVESTMENT COMPANIES -- 99.4% SHARES VALUE
- --------------------------------------------------------------------------------------
GROWTH FUNDS -- 34.4%
American Funds AMCAP - Class A ..................... 220,171 $ 4,359,387
American Growth Fund of America - Class A .......... 263,753 8,645,821
Calamos Growth - Class A(a) ........................ 142,885 8,421,664
Fidelity Capital Appreciation(a) ................... 236,332 6,572,381
Goldman Sachs Growth Opportunities - Class A(a) .... 224,103 5,131,956
iShares Russell 1000 Growth Index(b) ............... 235 12,321
Marsico 21st Century ............................... 574,651 8,315,206
Wells Fargo Advantage Endeavor Select - Class A(a) . 152,697 1,523,915
-------------
42,982,651
-------------
GROWTH AND INCOME FUNDS -- 32.0%
Fidelity Select Utilities Growth ................... 67,387 3,132,158
Hotchkis & Wiley Large Cap Value - Class A ......... 355,545 8,685,949
iShares Dow Jones Select Dividend Index(b) ......... 65,100 4,166,400
iShares Dow Jones U.S. Energy Sector Index(b) ...... 43,900 4,252,593
iShares Goldman Sachs Natural Resources Index(b) ... 10,600 1,083,320
iShares Russell 1000 Value Index(b) ................ 14,800 1,106,152
iShares S&P 500 Index(b) ........................... 17,350 2,281,525
iShares S&P MidCap 400/BARRA Value Index(b) ........ 73,000 5,705,680
Powershares Dynamic Market(b) ...................... 116,200 5,567,142
Vanguard 500 Index - Investor Shares ............... 32,156 3,885,414
-------------
39,866,333
-------------
SMALL COMPANY FUNDS -- 18.0%
Buffalo Small Cap(a) ............................... 47,040 1,332,165
Diamond Hill Small Cap - Class I ................... 20,842 537,099
FBR Small Cap(a) ................................... 44,407 2,173,304
iShares S&P SmallCap 600/BARRA Growth Index(b) ..... 21,700 2,807,546
iShares S&P SmallCap 600/BARRA Value Index(b) ...... 27,400 1,998,830
Royce Opportunity - Investor Class(a) .............. 352,055 5,115,360
William Blair Small Cap Growth - Class I(a) ........ 309,031 8,485,994
-------------
22,450,298
-------------
FOREIGN STOCK FUNDS -- 15.0%
Dodge & Cox International Stock .................... 95,563 3,921,882
iShares MSCI EAFE Index(b) ......................... 40,200 2,735,610
iShares MSCI Emerging Markets Index(b) ............. 64,900 6,843,705
Lazard International Small Cap - Investor Shares ... 137,283 2,727,813
Tocqueville International Value (The) .............. 141,610 2,441,363
-------------
18,670,373
-------------
TOTAL INVESTMENT COMPANIES (Cost $89,416,946) ........ $ 123,969,655
-------------
18
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
======================================================================================
MONEY MARKET SECURITIES -- 0.7% SHARES VALUE
- --------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $855,459) .................................. 855,459 $ 855,459
-------------
TOTAL INVESTMENTS AT VALUE --100.1% (Cost $90,272,405) $ 124,825,114
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)....... (155,804)
-------------
NET ASSETS -- 100.0% ................................. $ 124,669,310
=============
(a) Non-income producing security.
(b) Exchange-traded fund.
See accompanying notes to financial statements.
19
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 2006 (UNAUDITED)
======================================================================================
INVESTMENT COMPANIES -- 99.4% SHARES VALUE
- --------------------------------------------------------------------------------------
GROWTH AND INCOME FUNDS -- 33.0%
Dodge & Cox Stock .................................. 27,793 $ 4,097,794
Fidelity Select Utilities Growth ................... 52,302 2,430,977
Hotchkis & Wiley Large Cap Value - Class A ......... 275,118 6,721,132
iShares Dow Jones Select Dividend Index(b) ......... 42,600 2,726,400
iShares Dow Jones U.S. Energy Sector Index(b) ...... 23,300 2,257,071
iShares Goldman Sachs Natural Resources Index(b) ... 10,600 1,083,320
iShares Russell 1000 Value Index(b) ................ 200 14,948
iShares S&P 500 Index(b) ........................... 29,600 3,892,400
iShares S&P MidCap 400/BARRA Value Index(b) ........ 9,000 703,440
Powershares Dynamic Market(b) ...................... 81,000 3,880,710
-------------
27,808,192
-------------
GROWTH FUNDS -- 12.3%
American Funds AMCAP - Class A ..................... 147,027 2,911,126
Calamos Growth - Class A(a) ........................ 30,316 1,786,837
Fidelity Capital Appreciation(a) ................... 59,996 1,668,493
iShares Russell 1000 Growth Index(b) ............... 300 15,729
S&P MidCap 400 Depositary Receipts(b) .............. 17,580 2,574,942
Wells Fargo Advantage Endeavor Select - Class A(a) . 136,092 1,358,199
-------------
10,315,326
-------------
SMALL COMPANY FUNDS -- 12.0%
Diamond Hill Small Cap - Class I ................... 4,168 107,420
FBR Small Cap(a) ................................... 23,054 1,128,270
iShares S&P SmallCap 600/BARRA Growth Index(b) ..... 15,400 1,992,452
iShares S&P SmallCap 600/BARRA Value Index(b) ...... 27,800 2,028,010
Royce Opportunity - Investor Class(a) .............. 116,031 1,685,924
William Blair Small Cap Growth - Class I(a) ........ 114,327 3,139,421
-------------
10,081,497
-------------
HIGH YIELD BOND FUNDS -- 10.5%
Fidelity Advisor High Income Advantage - Class I ... 515,386 5,030,173
MainStay High Yield Corporate Bond - Class A ....... 612,042 3,837,502
-------------
8,867,675
-------------
FOREIGN STOCK FUNDS -- 9.9%
Dodge & Cox International Stock .................... 16,862 692,010
iShares MSCI EAFE Index(b) ......................... 57,300 3,899,265
Lazard International Small Cap - Investor Shares ... 49,927 992,056
Tocqueville International Value (The) .............. 161,803 2,789,484
-------------
8,372,815
-------------
WORLDWIDE BOND FUNDS -- 5.8%
Alliance World Dollar Government(c) ................ 78,800 981,060
Loomis Sayles Global Bond - Institutional Class .... 55,028 831,468
PIMCO Foreign Bond - Institutional Class ........... 92,501 948,135
TCW Galileo Emerging Markets Income - Class I ...... 68,552 547,731
Templeton Global Bond - Class A .................... 96,569 1,052,597
T. Rowe Price Emerging Markets Bond ................ 37,149 507,832
-------------
4,868,823
-------------
20
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
======================================================================================
INVESTMENT COMPANIES -- 99.4% (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------------
CONVERTIBLE SECURITY FUNDS -- 5.2%
Davis Appreciation & Income ......................... 83,523 $ 2,447,232
Franklin Convertible Securities - Class A ........... 114,020 1,922,373
-------------
4,369,605
-------------
CORPORATE BOND FUNDS -- 4.8%
Loomis Sayles Bond - Institutional Class ............ 290,144 4,047,509
-------------
GOVERNMENT BOND FUNDS -- 3.1%
American Century Target Maturities Trust
Series 2015 - Investor Class ...................... 36,259 2,647,253
-------------
HIGH QUALITY BOND FUNDS -- 2.8%
Dodge & Cox Income .................................. 190,463 2,361,745
-------------
TOTAL INVESTMENT COMPANIES (Cost $68,058,007).......... $ 83,740,440
-------------
======================================================================================
MONEY MARKET SECURITIES -- 0.7% SHARES VALUE
- --------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $588,340) ................................... 588,340 $ 588,340
-------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $68,646,347) $ 84,328,780
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)........ (84,919)
-------------
NET ASSETS -- 100.0% .................................. $ 84,243,861
=============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Closed end fund.
See accompanying notes to financial statements.
21
NEW CENTURY OPPORTUNISTIC PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 2006 (UNAUDITED)
======================================================================================
INVESTMENT COMPANIES -- 97.6% SHARES VALUE
- --------------------------------------------------------------------------------------
SECTOR FUNDS -- 62.1%
Fidelity Select Medical Delivery(a) ................. 8,853 $ 435,559
Fidelity Select Wireless(a) ......................... 90,032 630,225
iShares Dow Jones U.S. Energy Sector Index(b) ....... 9,200 891,204
iShares Goldman Sachs Natural Resources Index(b) .... 10,100 1,032,220
iShares Goldman Sachs Networking Index(a)(b) ........ 38,500 1,347,115
iShares Goldman Sachs Semiconductor Index(b) ........ 5,900 393,766
iShares MSCI Emerging Markets Index(b) .............. 12,300 1,297,035
iShares Nasdaq Biotechnology Index(a)(b) ............ 11,200 869,792
PowerShares Dynamic Biotechnology & Genome(a)(b) .... 4,100 70,807
Technology Select Sector SPDR(b) .................... 49,300 1,076,712
T. Rowe Price Emerging Europe & Mediterranean ....... 5,548 167,951
-------------
8,212,386
-------------
MID-CAP FUNDS -- 20.8%
Calamos Growth - Class A(a) ......................... 13,035 768,291
iShares S&P MidCap 400/BARRA Growth Index(b) ........ 5,800 468,524
Janus Orion ......................................... 31,615 299,706
Luethold Select Industries .......................... 30,369 551,203
S&P MidCap 400 Depositary Receipts(b) ............... 4,502 659,408
-------------
2,747,132
-------------
SMALL-CAP FUNDS -- 11.3%
Buffalo Small Cap(a) ................................ 14,272 404,191
Diamond Hill Small Cap - Class I .................... 1,042 26,855
iShares S&P 600 Value Index(b) ...................... 3,100 226,145
iShares S&P SmallCap 600/BARRA Growth Index(b) ...... 1,200 155,256
Perritt Micro Cap Opportunities(a) .................. 20,257 680,026
-------------
1,492,473
-------------
LARGE-CAP FUNDS -- 3.4%
Fidelity Capital Appreciation (a) ................... 16,038 446,030
-------------
TOTAL INVESTMENT COMPANIES (Cost $10,668,628) ......... $ 12,898,021
-------------
======================================================================================
MONEY MARKET SECURITIES -- 2.5% SHARES VALUE
- --------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $330,089) ................................... 330,089 $ 330,089
-------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $10,998,717) $ 13,228,110
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)........ (10,907)
-------------
Net Assets -- 100.0%................................... $ 13,217,203
=============
(a) Non-income producing security.
(b) Exchange-traded fund.
See accompanying notes to financial statements.
22
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 2006 (UNAUDITED)
======================================================================================
INVESTMENT COMPANIES -- 99.2% SHARES VALUE
- --------------------------------------------------------------------------------------
ASIA/PACIFIC FUNDS -- 27.2%
Eaton Vance Greater India - Class A(a) ............. 164,633 $ 4,064,781
Fidelity Japan ..................................... 194,827 3,691,974
Fidelity Japan Small Companies ..................... 130,557 2,095,433
iShares FTSE/Xinhua China 25 Index(b) .............. 39,900 3,134,145
iShares MSCI Australia Index(b) .................... 151,100 3,315,134
iShares MSCI Japan Index(b) ........................ 143,800 2,132,554
iShares MSCI Pacific Ex-Japan Index(b) ............. 21,600 2,457,000
Matthews Pacific Tiger - Class I ................... 112,202 2,448,257
ProFunds UltraJapan(a) ............................. 50,815 3,605,322
-------------
26,944,600
-------------
DIVERSIFIED FUNDS -- 25.4%
AllianceBernstein International Growth - Class A ... 96,380 1,762,798
Dodge & Cox International Stock .................... 71,691 2,942,176
iShares MSCI EAFE Index(b) ......................... 67,800 4,613,790
iShares S&P Global Energy Sector Index(b) .......... 18,900 2,046,492
Janus Overseas ..................................... 133,181 5,292,600
Lazard International Small Cap - Investor Shares ... 93,628 1,860,397
Oppenheimer International Small Company - Class A(a) 146,562 3,787,163
Tocqueville International Value (The) .............. 168,364 2,902,595
-------------
25,208,011
-------------
EUROPE FUNDS -- 19.6%
iShares MSCI Austria Index(b) ...................... 166,200 5,459,670
iShares MSCI Belgium Index(b) ...................... 110,600 2,474,122
iShares MSCI EMU Index(b) .......................... 6,600 600,930
iShares MSCI Germany Index(b) ...................... 128,200 3,093,466
iShares MSCI Sweden Index(b) ....................... 76,000 2,067,200
iShares MSCI Switzerland Index(b) .................. 47,500 1,054,025
iShares MSCI United Kingdom Index(b) ............... 61,746 1,317,660
Ivy European Opportunities - Class A ............... 95,812 3,420,497
-------------
19,487,570
-------------
AMERICAS FUNDS -- 15.1%
Fidelity Canada .................................... 56,310 2,697,243
iShares MSCI Canada Index(b) ....................... 147,100 3,656,906
iShares MSCI Mexico Index(b) ....................... 54,800 2,219,400
iShares S&P Latin American 40 Index(b) ............. 42,200 6,414,400
-------------
14,987,949
-------------
EMERGING MARKETS FUNDS -- 11.9%
iShares MSCI Emerging Markets Index(b) ............. 57,700 6,084,465
Oppenheimer Developing Markets - Class A ........... 28,625 1,215,413
T. Rowe Price Emerging Europe & Mediterranean ...... 147,071 4,451,847
-------------
11,751,725
-------------
TOTAL INVESTMENT COMPANIES (Cost $72,137,668) ........ $ 98,379,855
-------------
See accompanying notes to financial statements.
23
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
======================================================================================
MONEY MARKET SECURITIES -- 0.7% SHARES VALUE
- --------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $698,701) .................................. 698,701 $ 698,701
-------------
TOTAL INVESTMENTS AT VALUE -- 99.9% (Cost $72,836,369) $ 99,078,556
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.1% ........ 104,644
-------------
NET ASSETS -- 100.0% ................................. $ 99,183,200
=============
(a) Non-income producing security.
(b) Exchange-traded fund.
See accompanying notes to financial statements.
24
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
APRIL 30, 2006 (UNAUDITED)
======================================================================================
INVESTMENT COMPANIES -- 98.2% SHARES VALUE
- --------------------------------------------------------------------------------------
LONG/SHORT EQUITY FUNDS -- 18.5%
CGM Focus .......................................... 35,746 $ 1,435,213
Diamond Hill Focus Long-Short - Class I ............ 154,891 2,750,865
Gartmore U.S. Growth Leaders Long-Short(a) ......... 95,694 992,344
Hussman Strategic Growth ........................... 272,745 4,399,371
James Market Neutral (The) ......................... 64,792 801,484
Prudent Bear ....................................... 177,563 1,035,193
Schwab Hedged Equity ............................... 229,739 3,388,645
Weitz Funds (The) - Partners III Opportunity(a) .... 171,618 1,767,665
-------------
16,570,780
-------------
GLOBAL MACRO FUNDS -- 13.5%
Calamos Global Growth and Income - Class A ......... 101,606 1,046,542
Capital and Income Strategies(b) ................... 20,000 362,600
First Eagle Global - Class A ....................... 137,552 6,430,551
Franklin Mutual Discovery - Class Z ................ 97,535 2,841,207
Oppenheimer International Bond - Class A .......... 233,702 1,390,527
-------------
12,071,427
-------------
MERGER ARBITRAGE FUNDS -- 13.1%
Arbitrage Fund (The) - Class R(a) .................. 204,007 2,580,680
Enterprise Mergers and Acquisitions - Class A ...... 315,629 3,856,990
Gabelli ABC ........................................ 113,320 1,183,063
Merger Fund (The) .................................. 267,529 4,093,190
-------------
11,713,923
-------------
ASSET ALLOCATION FUNDS -- 10.4%
Berwyn Income ...................................... 107,902 1,291,587
FPA Crescent - Class I ............................. 112,181 3,019,913
Greenspring ........................................ 76,371 1,797,024
Leuthold Core Investment ........................... 145,938 2,650,233
Oakmark Equity and Income - Class I ................ 20,749 535,322
-------------
9,294,079
-------------
NATURAL RESOURCES FUNDS -- 10.1%
DWS Global Commodities Stock(b) .................... 21,704 375,696
FBR Gas Utility Index .............................. 27,064 482,288
Permanent Portfolio ................................ 19,656 623,867
PIMCO Commodity Real Return Strategy - Class A ..... 215,101 3,194,250
PowerShares Water Resources Portfolio(b) ........... 10,000 182,700
RS Global Natural Resources ........................ 67,835 2,575,003
T. Rowe Price New Era .............................. 8,441 404,264
Vanguard Precious Metals & Minerals ................ 38,910 1,192,586
-------------
9,030,654
-------------
OPTION HEDGED FUNDS -- 7.4%
Analytic Defensive Equity - Institutional Shares ... 198,702 2,620,875
Gateway ............................................ 155,379 4,060,062
-------------
6,680,937
-------------
REAL ESTATE FUNDS -- 7.3%
AIM Select Real Estate Income(b) ................... 40,170 633,079
Alpine International Real Estate Equity - Class Y .. 33,418 1,193,024
DWS RREEF Real Estate(b) ........................... 16,100 351,785
See accompanying notes to financial statements.
25
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
======================================================================================
INVESTMENT COMPANIES -- 98.2% (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------------
REAL ESTATE FUNDS -- 7.3% (Continued)
JPMorgan U.S. Real Estate - Class A ................ 39,554 $ 845,280
Neuberger Berman Real Estate Securities Income(b) .. 29,000 437,030
Third Avenue Real Estate Value ..................... 95,119 3,058,070
-------------
6,518,268
-------------
HIGH YIELD FUNDS -- 6.9%
Alliance World Dollar Government(b) ................ 10,000 124,500
Calamos High Yield - Class A ....................... 33,215 356,061
Fidelity Capital & Income .......................... 103,836 889,875
MainStay Global High Income - Class A .............. 112,037 1,289,547
MainStay High Yield Corporate Bond - Class A ....... 237,012 1,486,067
Neuberger Berman Income Opportunity(b) ............. 39,700 598,676
Nuveen Preferred and Convertible Income(b) ......... 26,000 315,120
Pioneer High Yield - Class A ....................... 97,622 1,079,700
-------------
6,139,546
-------------
DEEP VALUE/DISTRESSED SECURITIES FUNDS -- 6.0%
Fairholme .......................................... 53,179 1,453,899
Franklin Mutual Beacon - Class Z ................... 102,995 1,725,171
Third Avenue Value ................................. 37,115 2,220,958
-------------
5,400,028
-------------
CONVERTIBLE ARBITRAGE FUNDS -- 5.0%
Calamos Market Neutral - A Shares .................. 355,066 4,463,174
-------------
TOTAL INVESTMENT COMPANIES (Cost $75,776,112) ........ $ 87,882,816
-------------
======================================================================================
STRUCTURED NOTES -- 0.5% PAR VALUE VALUE
- --------------------------------------------------------------------------------------
Eksportfinans ASA, Efficient Allocation Return
Note, due 10/19/09 (Cost $500,000) ............... $ 500,000 $ 500,000
-------------
======================================================================================
MONEY MARKET SECURITIES -- 1.3% SHARES VALUE
- --------------------------------------------------------------------------------------
First American Treasury Obligation - Class A
(Cost $1,126,622)................................. 1,126,622 $ 1,126,622
-------------
TOTAL INVESTMENTS AT VALUE -- 100.0% (Cost $77,402,734) $ 89,509,438
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.0%)....... (35,207)
-------------
NET ASSETS -- 100.0% ................................. $ 89,474,231
=============
(a) Non-income producing security.
(b) Closed-end fund.
See accompanying notes to financial statements.
26
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2006 (UNAUDITED)
================================================================================
(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 Opportunistic Portfolio (formerly New Century Agressive 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
Opportunistic 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"), a wholly-owned subsidiary of The
Washington Trust Company, serves as the investment advisor to each Portfolio.
Weston Securities Corporation (the "Distributor"), a wholly-owned subsidiary of
The Washington Trust Company, serves as the distributor and principal
underwriter to each Portfolio.
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 Opportunistic 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 Opportunistic Portfolio may also invest in shares
of registered investment companies that seek appreciation by investing in fixed
income securities, including high-yield, lower rated debt securities.
27
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
================================================================================
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. It is expected
that fixed income securities will ordinarily be traded in the over-the-counter
market. When market quotations are not readily available, fixed income
securities may be valued on the basis of prices provided by an independent
pricing service. 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.
28
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
================================================================================
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 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 exchange of
shares between the various Portfolios of the Trust, the redemption of shares
representing reinvested dividends or capital gain distributions, or on amounts
representing capital appreciation of shares. During the periods ended April 30,
2006 and October 31, 2005, proceeds from redemption fees totaled $573 and $73,
respectively for the New Century International Portfolio and $0 and $76,
respectively, for the New Century Alternative Strategies Portfolio. No
redemption fees were collected for the New Century Capital, New Century Balanced
and New Century Opportunistic Portfolios. Any redemption fees are credited to
the applicable Portfolio.
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
Opportunistic 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 periods ended April 30, 2006 and
October 31, 2005.
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.
29
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
================================================================================
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.
(2) INVESTMENT ADVISORY FEES, ADMINISTRATIVE
AGREEMENT AND TRUSTEES' FEES
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 six months
ended April 30, 2006, the Advisor waived $30,480 of advisory fees for the New
Century Opportunistic Portfolio and waived investment advisory fees of $2,545
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 six months ended April 30, 2006, the Advisor
received $24,522 in recouped fees from the New Century International Portfolio.
During the six months ended April 30, 2006, the Advisor did not recoup any fees
waived or other operating expenses absorbed from the New Century Opportunistic
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.
30
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
================================================================================
As of April 30, 2006, 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 Opportunistic Portfolio............................... $ 225,485
New Century International Portfolio............................... $ 107,583
- --------------------------------------------------------------------------------
As of April 30, 2006, the Advisor may recapture a portion of the above amounts
no later than the dates as stated below:
- --------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2006 2007 2008 2009
- -----------------------------------------------------------------------------------------------------------
New Century Opportunistic Portfolio.... $ 68,836 $ 64,016 $ 62,153 $ 30,480
New Century International Portfolio.... $ 38,211 $ 48,030 $ 18,797 $ 2,545
- -----------------------------------------------------------------------------------------------------------
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 six months ended April 30, 2006, the Distributor received $75,996,
$60,190, $11,474, $88,303 and $31,127 from New Century Capital, Balanced,
Opportunistic, International and Alternative Strategies Portfolios,
respectively, pursuant to the Plan.
Also during this time, the Distributor received sales commissions and other
compensation of $70,700, $36,280, $831, $10,166 and $61,804 in connection with
the purchase of investment company shares by New Century Capital, Balanced,
Opportunistic, International and Alternative Strategies Portfolios,
respectively. The
31
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
================================================================================
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.
(4) INVESTMENT TRANSACTIONS
For the six months ended April 30, 2006, 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 OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
Purchase of investment securities .......... $ 8,231,511 $ 8,200,307 $ 6,228,821 $ 42,886,230 $ 14,118,664
============ ============ ============ ============ ============
Proceeds from sales of investment securities $ 7,046,358 $ 6,524,771 $ 1,129,992 $ 6,232,790 $ 4,720,692
============ ============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------------------------------
(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.
The tax character of distributable earnings at April 30, 2006 was as follows:
- --------------------------------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
Accumulated ordinary income (loss).......... $ 55,747 $ (48,973) $ (21,524) $ 21,229 $ 64,065
Unrealized appreciation..................... 34,544,708 15,550,520 2,205,955 26,242,187 12,102,641
Capital loss carryforwards.................. (8,985,464) (2,994,514) (1,290,780) -- --
Other gains................................. 3,782,419 1,934,517 318,128 2,123,366 1,657,125
------------ ------------ ------------ ------------ ------------
Total distributable earnings................ $ 29,397,410 $ 14,441,550 $ 1,211,779 $ 28,386,782 $ 13,823,831
============ ============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------------------------------
32
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2006 (UNAUDITED)
================================================================================================================================
The following information is based upon the federal income tax cost of investment securities as of April 30, 2006:
- --------------------------------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
Gross unrealized appreciation............... $ 34,544,728 $ 15,962,554 $ 2,284,516 $ 26,304,151 $ 12,638,554
Gross unrealized depreciation............... (20) (412,034) (78,561) (61,964) (535,913)
------------ ------------ ------------ ------------ ------------
Net unrealized appreciation................. $ 34,544,708 $ 15,550,520 $ 2,205,955 $ 26,242,187 $ 12,102,641
============ ============ ============ ============ ============
Federal income tax cost..................... $ 90,280,406 $ 68,778,260 $ 11,022,155 $ 72,836,369 $ 77,406,797
============ ============ ============ ============ ============
- --------------------------------------------------------------------------------------------------------------------------------
The difference between the federal income tax cost of portfolio investments and
the financial statement cost for New Century Capital, Balanced, Opportunistic
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 the current and 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 OPPORTUNISTIC
EXPIRES OCTOBER 31, PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------
2010 ...................... $ 5,854,434 $ 2,850,984 $ 1,174,122
2011 ...................... 3,131,030 143,530 116,658
- --------------------------------------------------------------------------------
(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.
33
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.
34
NEW CENTURY PORTFOLIOS
ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
(CONTINUED)
================================================================================
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.
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
Nov. 1, 2005 April 30, 2006 During Period*
- ---------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $1,147.60 $ 7.03
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,018.25 $ 6.61
- ---------------------------------------------------------------------------------------
* Expenses are equal to the New Century Capital Portfolio's annualized
expense ratio of 1.32% for the period, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
NEW CENTURY BALANCED PORTFOLIO
- ---------------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
Nov. 1, 2005 April 30, 2006 During Period*
- ---------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $1,099.00 $ 7.13
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,018.00 $ 6.85
- ---------------------------------------------------------------------------------------
* Expenses are equal to the New Century Balanced Portfolio's annualized
expense ratio of 1.37% for the period, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
NEW CENTURY OPPORTUNISTIC PORTFOLIO
- ---------------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
Nov. 1, 2005 April 30, 2006 During Period*
- ---------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $1,130.70 $ 7.92
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,017.36 $ 7.50
- ---------------------------------------------------------------------------------------
* Expenses are equal to the New Century Opportunistic Portfolio's annualized
expense ratio of 1.50% for the period, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
35
NEW CENTURY PORTFOLIOS
ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
(CONTINUED)
=======================================================================================
NEW CENTURY INTERNATIONAL PORTFOLIO
- ---------------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
Nov. 1, 2005 April 30, 2006 During Period*
- ---------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $1,256.00 $ 8.39
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,017.36 $ 7.50
- ---------------------------------------------------------------------------------------
* 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 181/365 (to reflect the one-half year
period).
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
- ---------------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
Nov. 1, 2005 April 30, 2006 During Period*
- ---------------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $1,093.00 $ 5.35
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,019.69 $ 5.16
- ---------------------------------------------------------------------------------------
* Expenses are equal to the New Century Alternative Strategies Portfolio's
annualized expense ratio of 1.03% for the period, multiplied by the average
account value over the period, multiplied by 181/365 (to reflect the
one-half year period).
36
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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'
Forms N-Q are available without charge upon request by calling 1-888-639-0102,
or on the SEC's website at http://www.sec.gov. The Portfolios' Forms N-Q may be
reviewed and copied at the SEC's Public Reference Room in Washington, DC, or by
calling 1-800-SEC-0330.
================================================================================
ITEM 2. CODE OF ETHICS.
Not required
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required
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 second fiscal quarter of the period covered by this
report that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not required
(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.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
--------------------------------------------------------------
By (Signature and Title)* /s/ Wayne M. Grzecki
-------------------------------------------
Wayne M. Grzecki, President
Date June 29, 2006
------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Wayne M. Grzecki
-------------------------------------------
Wayne M. Grzecki, President
Date June 29, 2006
------------------------------------
By (Signature and Title)* /s/ Nicole M. Tremblay
-------------------------------------------
Nicole M. Tremblay, Treasurer
Date June 29, 2006
------------------------------------
* Print the name and title of each signing officer under his or her signature.