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OMB APPROVAL
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OMB Number: 3235-0570
Expires: April 30, 2008
Estimated average burden
hours per response: 19.4
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05646
---------------------------------------------
New Century Portfolios
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
40 William Street, Suite 100 Wellesley, Massachusetts 02481
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Nicole M. Tremblay, Esq.
Weston Financial Group, Inc. 40 William Street, Suite 100 Wellesley, MA 02481
------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (781) 235-7055
---------------------------
Date of fiscal year end: October 31, 2007
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Date of reporting period: October 31, 2007
---------------------------------------------
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.
================================================================================
[LOGO]
NEW CENTURY
PORTFOLIOS
NEW CENTURY CAPITAL
NEW CENTURY BALANCED
NEW CENTURY OPPORTUNISTIC
NEW CENTURY INTERNATIONAL
NEW CENTURY ALTERNATIVE STRATEGIES
ANNUAL REPORT
YEAR ENDED OCTOBER 31, 2007
40 WILLIAM STREET, SUITE 100, WELLESLEY MA 02481 781-239-0445 888-639-0102
FAX 781-237-1635
================================================================================
CONTENTS
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER 1-2
PERFORMANCE CHARTS 3-5
PORTFOLIO INFORMATION 6-10
NEW CENTURY PORTFOLIOS
Statements of Assets and Liabilities 11
Statements of Operations 12
Statements of Changes in Net Assets 13-15
Financial Highlights 16-20
Portfolios of Investments 21-29
Notes to Financial Statements 30-38
Report of Independent Registered Public Accounting Firm 39
Board of Trustees and Officers 40-41
Federal Tax Information 41
About Your Portfolio's Expenses 42-44
Trustees Approval of Investment Advisory Agreements 45-47
LETTER TO SHAREHOLDERS DECEMBER 2007
================================================================================
Dear Fellow Shareholders:
I am pleased to present our 18th Annual Report.
Over the past twelve months, concerns about subprime mortgage loans, the housing
slump, increases in energy prices, and the weakening U.S. dollar continue to
test the American consumer. Despite increased volatility, U.S. equity markets,
as measured by the S&P 500(R) Composite Index, posted a gain of 14.56% during
the twelve-month period ended October 31, 2007. International equity markets
continued to outpace domestic equities over the twelve-month period. As of
October 31, 2007, the international equity markets, as measured by the MSCI EAFE
Index, gained 24.91%. The fixed income markets also experienced increased
volatility as investors, due to credit and liquidity concerns, fled to higher
quality investments. The fixed income markets, as measured by the Lehman
Brothers Intermediate U.S. Government/Credit Index, gained 5.65% during the
twelve-month period ended October 31, 2007.
During this challenging period, the New Century Capital Portfolio implemented
several shifts in sector allocation. We continued to emphasize the large-cap
growth and the foreign sectors, while continuing to reduce the large-cap value
and small-cap sectors. The Portfolio's exposure to the energy sector also
increased during the period. The New Century Capital Portfolio gained 20.02% as
compared to the S&P 500(R) Composite Index which gained 14.56% for the
twelve-month period ended October 31, 2007.
Similar to New Century Capital, the New Century Balanced Portfolio increased its
allocation to the large-cap growth and foreign sectors, while reducing positions
in the large-cap value and small-cap sectors. The increase in the foreign sector
was achieved through the addition of multi-asset global investments. In response
to the volatile credit environment, the New Century Balanced Portfolio continued
to reduce its holdings in high-yield bonds, while increasing exposure to the
government and the high quality bond sectors. The Portfolio slightly reduced its
equity-to-fixed-income allocation to 64%/36%. During the twelve-month period
ended October 31, 2007, the New Century Balanced Portfolio returned 12.09% as
compared to the S&P 500(R) Composite Index which gained 14.56% and the Lehman
Brothers Intermediate U.S. Government/Credit Index which gained 5.65%.
The New Century Opportunistic Portfolio decreased its holdings in the small-cap
and the mid-cap sectors while increasing its allocation to large-cap growth. In
the sector-specific category, positions in the biotech and technology sectors
were reduced, while the global real estate and emerging market sectors were
increased. During the twelve-month period ended October 31, 2007, the New
Century Opportunistic Portfolio posted a gain of 24.66% while the NASDAQ
Composite Index gained 20.81% and the Russell 3000 Growth posted a gain of
19.0%.
Over the last twelve months, the New Century International Portfolio increased
its allocation to the Americas (ex-US), Pacific Rim, and Global Energy sectors
while slightly reducing its allocation to Europe and Japan. The New Century
International Portfolio continues to maintain holdings in non-traditional EAFE
regions such as India, China and Latin America.
1
During the twelve-month period ended October 31, 2007, the New Century
International Portfolio gained 38.62%. The international equity markets, as
measured by the MSCI EAFE Index, increased 24.91% during the same time period.
The New Century Alternative Strategies Portfolio maintained diversified
positions in ten investment strategies, reducing its exposure to the real estate
and high-yield categories, while increasing its exposure to global macro
strategies. Within the real estate category, domestic holdings were reduced and
international holdings increased. The New Century Alternative Strategies
Portfolio had a total return of 12.09% for the twelve-month period ended October
31, 2007, as compared to the S&P 500(R) Composite Index which gained 14.56% and
the Lehman Brothers Intermediate U.S. Government/Credit Index which gained 5.65%
during the same time period.
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
PERFORMANCE CHARTS (UNAUDITED)
================================================================================
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE NEW CENTURY
CAPITAL PORTFOLIO AND THE S&P 500(R) COMPOSITE INDEX
[GRAPH OMITTED]
New Century Capital Portfolio S&P 500(R) Composite Index
----------------------------- --------------------------
Ending Ending
Date Balance Date Balance
------ --------- ------ ---------
10/31/1997 $ 10,000 10/31/1997 $ 10,000
10/31/1998 10,797 10/31/1998 12,199
10/31/1999 13,922 10/31/1999 15,331
10/31/2000 15,999 10/31/2000 16,264
10/31/2001 11,558 10/31/2001 12,214
10/31/2002 9,743 10/31/2002 10,369
10/31/2003 11,934 10/31/2003 12,526
10/31/2004 12,919 10/31/2004 13,706
10/31/2005 14,522 10/31/2005 14,901
10/31/2006 16,637 10/31/2006 17,336
10/31/2007 19,968 10/31/2007 19,860
- -------------------------------
NEW CENTURY CAPITAL PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR 5 YEARS 10 YEARS
20.02% 15.43% 7.16%
- -------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE NEW CENTURY BALANCED PORTFOLIO, S&P 500(R) COMPOSITE INDEX AND
LEHMAN BROTHERS INTERMEDIATE U.S. GOVERNMENT/CREDIT INDEX
[GRAPH OMITTED]
New Century Lehman Brothers Intermediate S&P 500(R)
Balanced Portfolio U.S. Government/Credit Index Composite Index
------------------ ---------------------------- ---------------
Ending Ending Ending
Date Balance Date Balance Date Balance
- ---------------------- ------------------------ ----------------------
10/31/1997 $ 10,000 10/31/1997 $ 10,000 10/31/1997 $ 10,000
10/31/1998 10,697 10/31/1998 10,912 10/31/1998 12,199
10/31/1999 12,329 10/31/1999 11,020 10/31/1999 15,331
10/31/2000 13,594 10/31/2000 11,732 10/31/2000 16,265
10/31/2001 12,061 10/31/2001 13,404 10/31/2001 12,215
10/31/2002 10,604 10/31/2002 14,196 10/31/2002 10,369
10/31/2003 12,601 10/31/2003 14,967 10/31/2003 12,524
10/31/2004 13,578 10/31/2004 15,615 10/31/2004 13,704
10/31/2005 14,734 10/31/2005 15,654 10/31/2005 14,899
10/31/2006 16,556 10/31/2006 16,342 10/31/2006 17,333
10/31/2007 18,557 10/31/2007 16,538 10/31/2007 19,860
- -------------------------------
NEW CENTURY BALANCED PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR 5 YEARS 10 YEARS
12.09% 11.84% 6.38%
- -------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
(a) The total returns shown do not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or the redemption of
Portfolio shares.
3
PERFORMANCE CHARTS (UNAUDITED) (CONTINUED)
================================================================================
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE NEW CENTURY OPPORTUNISTIC PORTFOLIO AND THE NASDAQ COMPOSITE INDEX
[GRAPHIC OMITTED]
New Century Opportunistic Portfolio NASDAQ Composite Index
----------------------------------- ----------------------
Ending Ending
Date Balance Date Balance
------ --------- ------ ---------
10/31/2000 $ 10,000 10/31/2000 $ 10,000
10/31/2001 7,370 10/31/2001 5,030
10/31/2002 5,470 10/31/2002 3,972
10/31/2003 6,950 10/31/2003 5,798
10/31/2004 7,300 10/31/2004 5,954
10/31/2005 8,720 10/31/2005 6,436
10/31/2006 9,450 10/31/2006 7,239
10/31/2007 11,780 10/31/2007 8,814
- --------------------------------------
NEW CENTURY OPPORTUNISTIC PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR 5 YEARS SINCE INCEPTION*
24.66% 16.58% 2.37%
- --------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE NEW CENTURY INTERNATIONAL PORTFOLIO AND THE MSCI EAFE INDEX
[GRAPHIC OMITTED]
New Century International Portfolio MSCI EAFE Index
----------------------------------- ---------------
Ending Ending
Date Balance Date Balance
------ --------- ------ ---------
10/31/2000 $ 10,000 10/31/2000 $ 10,000
10/31/2001 7,410 10/31/2001 7,532
10/31/2002 6,533 10/31/2002 6,559
10/31/2003 8,697 10/31/2003 8,367
10/31/2004 10,089 10/31/2004 9,979
10/31/2005 12,481 10/31/2005 11,787
10/31/2006 15,645 10/31/2006 15,031
10/31/2007 21,686 10/31/2007 18,778
- -------------------------------------
NEW CENTURY INTERNATIONAL PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR 5 YEARS SINCE INCEPTION*
38.62% 27.12% 11.70%
- -------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
* Initial public offering of shares was November 1, 2000.
(a) The total returns shown do not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or the redemption of
Portfolio shares.
4
PERFORMANCE CHARTS (UNAUDITED) (CONTINUED)
================================================================================
COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT
IN THE NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO, S&P 500(R) COMPOSITE INDEX
AND LEHMAN BROTHERS INTERMEDIATE U.S. GOVERNMENT/CREDIT INDEX
[GRAPH OMITTED]
New Century Alternative S&P 500(R) Lehman Brothers Intermediate
Strategies Portfolio Composite Index U.S. Government/Credit Index
- -------------------- --------------- ----------------------------
Ending Ending Ending
Date Balance Date Balance Date Balance
- ---------------------- ------------------------ ----------------------
5/1/2002 $ 10,000 5/1/2002 $ 10,000 5/1/2002 $ 10,000
5/31/2002 10,000 5/31/2002 9,838 5/31/2002 10,087
6/30/2002 9,720 6/30/2002 9,137 6/30/2002 10,174
7/31/2002 9,290 7/31/2002 8,425 7/31/2002 10,294
8/31/2002 9,340 8/31/2002 8,480 8/31/2002 10,447
9/30/2002 9,110 9/30/2002 7,559 9/30/2002 10,634
10/31/2002 9,120 10/31/2002 8,224 10/31/2002 10,593
11/30/2002 9,330 11/30/2002 8,708 11/30/2002 10,583
12/31/2002 9,325 12/31/2002 8,196 12/31/2002 10,814
1/31/2003 9,285 1/31/2003 7,982 1/31/2003 10,813
2/28/2003 9,264 2/28/2003 7,862 2/28/2003 10,965
3/31/2003 9,295 3/31/2003 7,938 3/31/2003 10,976
4/30/2003 9,618 4/30/2003 8,592 4/30/2003 11,060
5/31/2003 9,982 5/31/2003 9,045 5/31/2003 11,282
6/30/2003 10,083 6/30/2003 9,160 6/30/2003 11,274
7/31/2003 10,194 7/31/2003 9,322 7/31/2003 10,967
8/31/2003 10,376 8/31/2003 9,503 8/31/2003 10,994
9/30/2003 10,477 9/30/2003 9,403 9/30/2003 11,272
10/31/2003 10,780 10/31/2003 9,934 10/31/2003 11,166
11/30/2003 11,002 11/30/2003 10,022 11/30/2003 11,181
12/31/2003 11,270 12/31/2003 10,547 12/31/2003 11,279
1/31/2004 11,383 1/31/2004 10,741 1/31/2004 11,353
2/29/2004 11,557 2/29/2004 10,890 2/29/2004 11,469
3/31/2004 11,629 3/31/2004 10,726 3/31/2004 11,558
4/30/2004 11,260 4/30/2004 10,558 4/30/2004 11,284
5/31/2004 11,342 5/31/2004 10,703 5/31/2004 11,234
6/30/2004 11,455 6/30/2004 10,911 6/30/2004 11,267
7/31/2004 11,342 7/31/2004 10,550 7/31/2004 11,362
8/31/2004 11,414 8/31/2004 10,592 8/31/2004 11,552
9/30/2004 11,639 9/30/2004 10,707 9/30/2004 11,571
10/31/2004 11,762 10/31/2004 10,871 10/31/2004 11,649
11/30/2004 12,111 11/30/2004 11,310 11/30/2004 11,543
12/31/2004 12,290 12/31/2004 11,695 12/31/2004 11,621
1/31/2005 12,119 1/31/2005 11,410 1/31/2005 11,644
2/28/2005 12,429 2/28/2005 11,650 2/28/2005 11,579
3/31/2005 12,322 3/31/2005 11,444 3/31/2005 11,519
4/30/2005 12,130 4/30/2005 11,227 4/30/2005 11,651
5/31/2005 12,290 5/31/2005 11,584 5/31/2005 11,755
6/30/2005 12,482 6/30/2005 11,601 6/30/2005 11,805
7/31/2005 12,793 7/31/2005 12,032 7/31/2005 11,707
8/31/2005 12,889 8/31/2005 11,922 8/31/2005 11,844
9/30/2005 13,114 9/30/2005 12,019 9/30/2005 11,743
10/31/2005 12,836 10/31/2005 11,818 10/31/2005 11,679
11/30/2005 12,996 11/30/2005 12,265 11/30/2005 11,730
12/31/2005 13,189 12/31/2005 12,270 12/31/2005 11,804
1/31/2006 13,632 1/31/2006 12,594 1/31/2006 11,801
2/28/2006 13,587 2/28/2006 12,629 2/28/2006 11,810
3/31/2006 13,798 3/31/2006 12,786 3/31/2006 11,758
4/30/2006 14,030 4/30/2006 12,957 4/30/2006 11,764
5/31/2006 13,831 5/31/2006 12,585 5/31/2006 11,765
6/30/2006 13,875 6/30/2006 12,602 6/30/2006 11,782
7/31/2006 13,986 7/31/2006 12,679 7/31/2006 11,914
8/31/2006 14,107 8/31/2006 12,981 8/31/2006 12,063
9/30/2006 14,096 9/30/2006 13,316 9/30/2006 12,159
10/31/2006 14,417 10/31/2006 13,749 10/31/2006 12,223
11/30/2006 14,705 11/30/2006 14,011 11/30/2006 12,334
12/31/2006 14,779 12/31/2006 14,207 12/31/2006 12,284
1/31/2007 14,965 1/31/2007 14,422 1/31/2007 12,289
2/28/2007 14,988 2/28/2007 14,140 2/28/2007 12,458
3/31/2007 15,139 3/31/2007 14,298 3/31/2007 12,479
4/30/2007 15,406 4/30/2007 14,932 4/30/2007 12,539
5/31/2007 15,684 5/31/2007 15,453 5/31/2007 12,459
6/30/2007 15,568 6/30/2007 15,196 6/30/2007 12,462
7/31/2007 15,336 7/31/2007 14,725 7/31/2007 12,580
8/31/2007 15,371 8/31/2007 14,946 8/31/2007 12,732
9/30/2007 15,812 9/30/2007 15,505 9/30/2007 12,820
10/31/2007 16,160 10/31/2007 15,752 10/31/2007 12,914
- --------------------------------------------
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
AVERAGE ANNUAL TOTAL RETURNS(a)
1 YEAR 5 YEARS SINCE INCEPTION*
12.09% 12.12% 9.12%
- --------------------------------------------
PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE.
* Initial public offering of shares was May 1, 2002.
(a) The total returns shown do not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or the redemption of
Portfolio shares.
5
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2007 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Growth Funds - 37.0%
[PIE CHART OMITTED] Growth and Income Funds - 30.7%
Foreign Stock Funds - 20.5%
Small Company Funds - 10.8%
Cash Equivalents - 1.0%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ----------------------------------------------- --------------
Marsico 21st Century 7.7%
American Funds Growth Fund of America - Class A 7.3%
iShares MSCI EAFE Index 4.9%
iShares MSCI Emerging Markets Index 4.8%
Fidelity Capital Appreciation 4.7%
iShares Dow Jones U.S. Energy Sector Index 4.5%
Goldman Sachs Growth Opportunities - Class A 4.4%
Dodge & Cox International Stock 4.3%
iShares S&P MidCap 400 Value Index 4.3%
Powershares Dynamic Market 4.3%
6
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2007 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Growth and Income Funds - 29.8%
Foreign Stock Funds - 16.2%
Growth Funds - 13.1%
Corporate Bond Funds - 8.2%
[PIE CHART OMITTED] Government Bond Funds - 7.9%
Convertible Security Funds - 6.1%
Small Company Funds - 5.0%
Worldwide Bond Funds - 4.4%
High Quality Bond Funds - 3.8%
High Yield Bond Funds - 3.1%
Cash Equivalents - 2.4%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ------------------------------------------ --------------
Loomis Sayles Bond - Institutional Class 8.2%
American Century Target Maturities
Trust Series 2015 - Investor Class 7.9%
iShares MSCI EAFE Index 6.1%
Dodge & Cox Stock 5.6%
iShares S&P 500 Index 5.5%
First Eagle Global - Class A 5.1%
Powershares Dynamic Market 4.5%
iShares Dow Jones U.S. Energy Sector Index 4.2%
Davis Appreciation & Income 3.8%
Fidelity Select Utilities Growth 3.7%
7
NEW CENTURY OPPORTUNISTIC PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2007 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Sector Funds - 45.5%
Large-Cap Funds - 30.6%
[PIE CHART OMITTED] Mid-Cap Funds - 17.6%
Small-Cap Funds - 4.4%
Cash Equivalents - 1.9%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ------------------------------------------ --------------
Marsico 21st Century 10.6%
iShares Dow Jones U.S. Energy Sector Index 9.3%
iShares MSCI Emerging Markets Index 8.1%
iShares Russell 1000 Growth Index 7.9%
Amana Growth 7.7%
iShares S&P GSSI Natural Resources Index 7.5%
Leuthold Select Industries 7.1%
iShares S&P GSTI Networking Index 6.1%
Technology Select Sector SPDR 5.9%
Janus Orion 5.7%
8
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2007 (UNAUDITED)
===============================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Europe Funds - 28.2%
Diversified Funds - 26.4%
[PIE CHART OMITTED] Asia/Pacific Funds - 22.8%
Americas Funds - 13.9%
Emerging Markets Funds - 6.4%
Cash Equivalents - 2.3%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ------------------------------------------------- --------------
Janus Overseas 6.0%
iShares FTSE/Xinhua China 25 Index 5.5%
iShares MSCI Austria Index 4.6%
Oppenheimer International Small Company - Class A 4.5%
Fidelity Canada 4.2%
Ivy European Opportunities - Class A 4.2%
AIM European Growth - Class A 4.1%
Eaton Vance Greater India - Class A 4.1%
iShares S&P Latin American 40 Index 4.0%
iShares MSCI EAFE Index 4.0%
9
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO INFORMATION
OCTOBER 31, 2007 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
Long/Short Equity Funds - 19.8%
Merger Arbitrage Funds - 14.7%
Global Macro Funds - 14.2%
Natural Resources Funds - 10.0%
[PIE CHART OMITTED] Asset Allocation Funds - 9.9%
Deep Value/Distressed Securities Funds - 6.9%
Option Hedged Funds - 6.4%
Real Estate Funds - 6.1%
Convertible Arbitrage Funds - 4.9%
High Yield Funds - 2.7%
Structured Notes - 2.4%
Cash Equivalents - 2.0%
TOP TEN HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- --------------------------------------------- --------------
First Eagle Global - Class A 6.7%
Calamos Market Neutral - A Shares 4.9%
Merger 4.8%
Gateway 4.5%
Hussman Strategic Growth 4.1%
Enterprise Mergers and Acquisitions - Class A 4.1%
Gabelli ABC 3.9%
Schwab Hedged Equity Select 3.7%
Franklin Mutual Discovery - Class Z 3.3%
Fairholme 3.2%
10
NEW CENTURY PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
OCTOBER 31, 2007
=============================================================================================================================
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 $ 96,069,552 $ 74,838,026 $ 11,752,242 $ 86,451,709 $ 106,416,452
============== ============== ============== ============== ==============
At value (Note 1A) $ 144,366,861 $ 95,132,510 $ 14,949,625 $ 147,562,032 $ 128,242,252
Dividends receivable 3,932 17,138 1,711 11,069 13,586
Receivable for capital shares sold 1,283 375 -- 4,070 18,250
Other assets 6,831 4,991 651 6,252 5,885
-------------- -------------- -------------- -------------- --------------
TOTAL ASSETS 144,378,907 95,155,014 14,951,987 147,583,423 128,279,973
-------------- -------------- -------------- -------------- --------------
LIABILITIES
Payable to Advisor (Note 2) 113,981 81,430 7,740 113,378 82,177
Payable to Distributor (Note 3) 20,800 10,900 2,900 26,500 12,500
Payable for capital shares redeemed 2,300 1,350 -- -- 57,454
Other accrued expenses and liabilities 14,068 9,400 6,184 27,144 10,900
-------------- -------------- -------------- -------------- --------------
TOTAL LIABILITIES 151,149 103,080 16,824 167,022 163,031
-------------- -------------- -------------- -------------- --------------
NET ASSETS $ 144,227,758 $ 95,051,934 $ 14,935,163 $ 147,416,401 $ 128,116,942
============== ============== ============== ============== ==============
Net assets consist of:
Paid-in capital $ 89,948,768 $ 69,564,326 $ 11,290,087 $ 82,860,031 $ 103,497,848
Undistributed (distributions in excess of)
net investment income -- 334,483 -- -- (45,582)
Undistributed net realized gains on
investments 5,981,681 4,858,641 447,693 3,446,047 2,838,876
Net unrealized appreciation of investments 48,297,309 20,294,484 3,197,383 61,110,323 21,825,800
-------------- -------------- -------------- -------------- --------------
Net assets $ 144,227,758 $ 95,051,934 $ 14,935,163 $ 147,416,401 $ 128,116,942
============== ============== ============== ============== ==============
Shares of beneficial interest outstanding
(unlimited number of shares authorized, no
par value) 6,975,518 5,893,896 1,267,985 7,347,146 9,197,083
============== ============== ============== ============== ==============
Net asset value, offering price and
redemption price per share (a) $ 20.68 $ 16.13 $ 11.78 $ 20.06 $ 13.93
============== ============== ============== ============== ==============
(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.
11
NEW CENTURY PORTFOLIOS
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 2007
====================================================================================================================
NEW CENTURY
NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends $ 1,242,623 $ 2,333,663 $ 127,435 $ 1,759,290 $ 2,384,344
------------ ------------ ------------ ------------ ------------
EXPENSES
Investment advisory fees (Note 2) 1,253,338 908,939 128,500 1,154,406 839,346
Distribution costs (Note 3) 209,248 159,091 28,046 242,158 155,766
Accounting fees 43,417 39,113 31,264 42,027 41,251
Legal and audit fees 39,670 27,561 5,225 36,834 35,818
Administration fees (Note 2) 37,112 27,160 9,164 33,962 31,942
Transfer agent fees 21,000 21,000 21,000 21,000 21,000
Custody fees 22,358 16,741 4,936 22,592 23,313
Trustees' fees and expenses (Note 2) 12,401 8,379 1,187 11,268 10,442
Insurance expense 11,188 7,738 1,140 9,205 9,009
Postage and supplies 10,561 7,158 4,545 6,844 7,085
Other expenses 11,940 8,870 5,356 8,937 9,341
------------ ------------ ------------ ------------ ------------
Total expenses 1,672,233 1,231,750 240,363 1,589,233 1,184,313
Less fees waived by the Advisor (Note 2) -- -- (48,660) -- --
Plus previously waived investment
advisory fees and expense reimbursements
recouped by the Advisor (Note 2) -- -- -- 35,096 --
------------ ------------ ------------ ------------ ------------
Net expenses 1,672,233 1,231,750 191,703 1,624,329 1,184,313
------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) (429,610) 1,101,913 (64,268) 134,961 1,200,031
------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains on investments 6,828,808 3,862,192 766,321 2,068,729 744,343
Capital gain distributions from regulated
investment companies 3,213,012 1,512,727 38,924 2,227,454 3,137,271
Net change in unrealized appreciation/
(depreciation) on investments 14,826,015 3,805,605 2,126,149 35,884,958 7,720,895
------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
GAINS ON INVESTMENTS 24,867,835 9,180,524 2,931,394 40,181,141 11,602,509
------------ ------------ ------------ ------------ ------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 24,438,225 $ 10,282,437 $ 2,867,126 $ 40,316,102 $ 12,802,540
============ ============ ============ ============ ============
See accompanying notes to financial statements.
12
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
=====================================================================================================================
NEW CENTURY NEW CENTURY
CAPITAL PORTFOLIO BALANCED PORTFOLIO
-------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2007 2006 2007 2006
- ---------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ (429,610) $ (556,605) $ 1,101,913 $ 979,158
Net realized gains from security transactions 6,828,808 1,704,300 3,862,192 1,241,744
Capital gain distributions from regulated
investment companies 3,213,012 3,556,360 1,512,727 1,607,334
Net change in unrealized appreciation/
(depreciation) on investments 14,826,015 11,233,452 3,805,605 5,632,860
------------- ------------- ------------- -------------
Net increase in net assets from operations 24,438,225 15,937,507 10,282,437 9,461,096
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) -- -- (1,085,845) (1,111,490)
From net realized gains on security transactions
(Note 1E) -- -- -- --
------------- ------------- ------------- -------------
Net decrease in net assets from distributions to
shareholders -- -- (1,085,845) (1,111,490)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 5,930,937 11,070,170 2,918,012 5,087,519
Proceeds from redemption fees collected (Note 1B) 29 -- 56 --
Net asset value of shares issued in reinvestment of
distributions to shareholders -- -- 1,045,536 1,066,079
Payments for shares redeemed (10,029,342) (13,697,406) (3,907,332) (5,831,703)
------------- ------------- ------------- -------------
Net increase (decrease) in net assets from capital
share transactions (4,098,376) (2,627,236) 56,272 321,895
------------- ------------- ------------- -------------
TOTAL INCREASE IN NET ASSETS 20,339,849 13,310,271 9,252,864 8,671,501
NET ASSETS
Beginning of year 123,887,909 110,577,638 85,799,070 77,127,569
------------- ------------- ------------- -------------
End of year $ 144,227,758 $ 123,887,909 $ 95,051,934 $ 85,799,070
============= ============= ============= =============
UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ -- $ 334,483 $ 227,009
============= ============= ============= =============
CAPITAL SHARE ACTIVITY
Sold 313,592 681,814 189,069 367,445
Reinvested -- -- 70,406 79,499
Redeemed (527,053) (846,878) (253,201) (422,404)
------------- ------------- ------------- -------------
Net increase (decrease) in shares outstanding (213,461) (165,064) 6,274 24,540
Shares outstanding, beginning of year 7,188,979 7,354,043 5,887,622 5,863,082
------------- ------------- ------------- -------------
Shares outstanding, end of year 6,975,518 7,188,979 5,893,896 5,887,622
============= ============= ============= =============
See accompanying notes to financial statements.
13
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
==============================================================================================================
NEW CENTURY NEW CENTURY
OPPORTUNISTIC PORTFOLIO INTERNATIONAL PORTFOLIO
-------------------------------------------------------------
YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2007 2006 2007 2006
- --------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ (64,268) $ (98,253) $ 134,961 $ (403,469)
Net realized gains from
security transactions 766,321 817,940 2,068,729 3,043,416
Capital gain distributions from regulated
investment companies 38,924 159,314 2,227,454 875,977
Net change in unrealized appreciation/
(depreciation) on investments 2,126,149 (391,329) 35,884,958 14,609,225
------------- ------------- ------------- -------------
Net increase in net assets from operations 2,867,126 487,672 40,316,102 18,125,149
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) -- -- (383,067) --
From net realized gains on security
transactions (Note 1E) -- -- (4,023,814) (684,174)
------------- ------------- ------------- -------------
Net decrease in net assets from
distributions to shareholders -- -- (4,406,881) (684,174)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 1,357,331 7,157,035 13,917,872 44,931,737
Proceeds from redemption
fees collected (Note 1B) -- -- 201 575
Net asset value of shares issued in
reinvestment of distributions to
shareholders -- -- 3,515,727 576,069
Payments for shares redeemed (1,238,154) (2,587,039) (8,871,897) (5,017,738)
------------- ------------- ------------- -------------
Net increase in net assets from capital
share transactions 119,177 4,569,996 8,561,903 40,490,643
------------- ------------- ------------- -------------
TOTAL INCREASE IN NET ASSETS 2,986,303 5,057,668 44,471,124 57,931,618
NET ASSETS
Beginning of year 11,948,860 6,891,192 102,945,277 45,013,659
------------- ------------- ------------- -------------
End of year $ 14,935,163 $ 11,948,860 $ 147,416,401 $ 102,945,277
============= ============= ============= =============
UNDISTRIBUTED NET
INVESTMENT INCOME $ -- $ -- $ -- $ --
============= ============= ============= =============
CAPITAL SHARE ACTIVITY
Sold 125,648 755,146 822,999 3,448,917
Reinvested -- -- 223,363 44,076
Redeemed (122,107) (281,228) (537,029) (368,210)
------------- ------------- ------------- -------------
Net increase in shares outstanding 3,541 473,918 509,333 3,124,783
Shares outstanding, beginning of year 1,264,444 790,526 6,837,813 3,713,030
------------- ------------- ------------- -------------
Shares outstanding, end of year 1,267,985 1,264,444 7,347,146 6,837,813
============= ============= ============= =============
See accompanying notes to financial statements.
14
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
=====================================================================================================
NEW CENTURY ALTERNATIVE
STRATEGIES PORTFOLIO
-----------------------------
YEAR YEAR
ENDED ENDED
OCTOBER 31, OCTOBER 31,
2007 2006
- -----------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 1,200,031 $ 1,260,904
Net realized gains from security transactions 744,343 973,092
Capital gain distributions from regulated investment companies 3,137,271 2,145,864
Net change in unrealized appreciation/(depreciation) on investments 7,720,895 5,623,409
------------- -------------
Net increase in net assets from operations 12,802,540 10,003,269
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) (2,420,775) (2,149,410)
From net realized gains on security transactions (Note 1E) (2,247,380) (455,936)
------------- -------------
Net decrease in net assets from distributions to shareholders (4,668,155) (2,605,346)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold 25,078,251 16,213,431
Proceeds from redemption fees collected (Note 1B) 29 --
Net asset value of shares issued in reinvestment of
distributions to shareholders 4,619,812 2,588,651
Payments for shares redeemed (7,526,721) (4,949,196)
------------- -------------
Net increase in net assets from capital share transactions 22,171,371 13,852,886
------------- -------------
TOTAL INCREASE IN NET ASSETS 30,305,756 21,250,809
NET ASSETS
Beginning of year 97,811,186 76,560,377
------------- -------------
End of year $ 128,116,942 $ 97,811,186
============= =============
UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (45,582) $ 136,487
============= =============
CAPITAL SHARE ACTIVITY
Sold 1,895,144 1,304,516
Reinvested 362,623 217,168
Redeemed (568,214) (398,656)
------------- -------------
Net increase in shares outstanding 1,689,553 1,123,028
Shares outstanding, beginning of year 7,507,530 6,384,502
------------- -------------
Shares outstanding, end of year 9,197,083 7,507,530
============= =============
See accompanying notes to financial statements.
15
NEW CENTURY CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
=================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- -----------------------------------------------------------------------------------------------------------------
YEARS ENDED OCTOBER 31,
-------------------------------------------------------------------------
2007 2006 2005 2004 2003
- -----------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year $ 17.23 $ 15.04 $ 13.38 $ 12.36 $ 10.09
----------- ----------- ----------- ----------- -----------
Income (loss) from investment
operations:
Net investment loss (0.06) (0.08) (0.09) (0.12) (0.06)
Net realized and unrealized gains
on investments 3.51 2.27 1.75 1.14 2.33
----------- ----------- ----------- ----------- -----------
Total from investment operations 3.45 2.19 1.66 1.02 2.27
----------- ----------- ----------- ----------- -----------
Less distributions:
Distributions from net
investment income -- -- -- -- --
Distributions from net realized
gains -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total distributions -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Proceeds from redemption fees
collected 0.00(a) -- -- -- --
----------- ----------- ----------- ----------- -----------
Net asset value, end of year $ 20.68 $ 17.23 $ 15.04 $ 13.38 $ 12.36
=========== =========== =========== =========== ===========
TOTAL RETURN (b) 20.02% 14.56% 12.41% 8.25% 22.50%
=========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 144,228 $ 123,888 $ 110,578 $ 103,260 $ 95,396
=========== =========== =========== =========== ===========
Ratio of expenses to average net
assets (c) 1.25% 1.27% 1.35% 1.41% 1.45%
Ratio of net investment loss
to average net assets (d) (0.32%) (0.47%) (0.57%) (0.91%) (0.59%)
Portfolio turnover 21% 12% 13% 48% 71%
(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 years covered, which assumes any dividends or
capital gains distributions, if any, are reinvested in shares of the
Portfolio. Returns shown do not reflect the deduction of taxes a
shareholder would pay on Portfolio distributions, if any, or the
redemption of Portfolio shares.
(c) The ratios of expenses to average net assets do not reflect the
Portfolio's proportionate share of expenses of the underlying investment
companies in which the Portfolio invests.
(d) Recognition of net investment loss by the Portfolio is affected by the
timing of the declaration of dividends by the underlying investment
companies in which the Portfolio invests.
See accompanying notes to financial statements.
16
NEW CENTURY BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
===============================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- ---------------------------------------------------------------------------------------------------------------
YEARS ENDED OCTOBER 31,
-----------------------------------------------------------------------
2007 2006 2005 2004 2003
- ---------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year $ 14.57 $ 13.15 $ 12.30 $ 11.52 $ 9.89
---------- ---------- ---------- ---------- ----------
Income from investment operations:
Net investment income 0.19 0.17 0.15 0.11 0.16
Net realized and unrealized gains
on investments 1.56 1.44 0.89 0.78 1.67
---------- ---------- ---------- ---------- ----------
Total from investment operations 1.75 1.61 1.04 0.89 1.83
---------- ---------- ---------- ---------- ----------
Less distributions:
Distributions from net
investment income (0.19) (0.19) (0.19) (0.11) (0.20)
Distributions from net realized
gains -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total distributions (0.19) (0.19) (0.19) (0.11) (0.20)
---------- ---------- ---------- ---------- ----------
Proceeds from redemption fees
collected 0.00(a) -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 16.13 $ 14.57 $ 13.15 $ 12.30 $ 11.52
========== ========== ========== ========== ==========
TOTAL RETURN (b) 12.09% 12.37% 8.51% 7.75% 18.84%
========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 95,052 $ 85,799 $ 77,128 $ 74,327 $ 70,441
========== ========== ========== ========== ==========
Ratio of expenses to average net
assets (e) 1.35% 1.38% 1.38% 1.42%(d) 1.45%(c)
Ratio of net investment income
to average net assets (f) 1.21% 1.20% 1.12% 0.88%(d) 1.56%(c)
Portfolio turnover 28% 22% 21% 44% 80%
(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 years covered, which assumes any dividends or
capital gains distributions, if any, are reinvested in shares of the
Portfolio. Returns shown do not reflect the deduction of taxes a
shareholder would pay on Portfolio distributions, if any, or the
redemption of Portfolio shares.
(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) 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.
(f) Recognition 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 OPPORTUNISTIC PORTFOLIO*
FINANCIAL HIGHLIGHTS
============================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- ------------------------------------------------------------------------------------------------------------
YEARS ENDED OCTOBER 31,
---------------------------------------------------------------
2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year $ 9.45 $ 8.72 $ 7.30 $ 6.95 $ 5.47
---------- ---------- ---------- ---------- ----------
Income (loss) from investment
operations:
Net investment loss (0.05) (0.08) (0.06) (0.07) (0.06)
Net realized and unrealized gains
on investments 2.38 0.81 1.48 0.42 1.54
---------- ---------- ---------- ---------- ----------
Total from investment operations 2.33 0.73 1.42 0.35 1.48
---------- ---------- ---------- ---------- ----------
Less distributions:
Distributions from net
investment income -- -- -- -- --
Distributions from net realized
gains -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Total distributions -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Proceeds from redemption fees
collected -- -- -- -- --
---------- ---------- ---------- ---------- ----------
Net asset value, end of year $ 11.78 $ 9.45 $ 8.72 $ 7.30 $ 6.95
========== ========== ========== ========== ==========
TOTAL RETURN (a) 24.66% 8.37% 19.45% 5.04% 27.06%
========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 14,935 $ 11,949 $ 6,891 $ 5,512 $ 4,866
========== ========== ========== ========== ==========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees (b) 1.88% 2.00% 2.56% 2.71% 3.20%
After expense reimbursement
and waived fees (b) 1.50% 1.50% 1.50% 1.50% 1.50%
Ratios of net investment loss
to average net assets:
Before expense reimbursement
and waived fees (c) (0.88%) (1.39%) (1.80%) (2.27%) (2.73%)
After expense reimbursement
and waived fees (c) (0.50%) (0.89%) (0.74%) (1.06%) (1.03%)
Portfolio turnover 47% 49% 19% 68% 78%
* 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 years covered, which assumes any dividends or
capital gains distributions, if any, are reinvested in shares of the
Portfolio. Returns shown do not reflect the deduction of taxes a
shareholder would pay on Portfolio distributions, if any, or the
redemption of Portfolio shares.
(b) The ratios of expenses to average net assets do not reflect the
Portfolio's proportionate share of expenses of the underlying investment
companies in which the Portfolio invests.
(c) Recognition of net investment loss by the Portfolio is affected by the
timing of the declaration of dividends by the underlying investment
companies in which the Portfolio invests.
See accompanying notes to financial statements.
18
NEW CENTURY INTERNATIONAL PORTFOLIO
FINANCIAL HIGHLIGHTS
======================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- ----------------------------------------------------------------------------------------------------------------------
YEARS ENDED OCTOBER 31,
------------------------------------------------------------------------------
2007 2006 2005 2004 2003
- ----------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year $ 15.06 $ 12.12 $ 10.07 $ 8.68 $ 6.52
----------- ----------- ----------- ----------- -----------
Income (loss) from investment
operations:
Net investment income (loss) 0.03 (0.06) (0.06) (0.05) (0.03)
Net realized and unrealized gains
on investments 5.61 3.12 2.42 1.44 2.19
----------- ----------- ----------- ----------- -----------
Total from investment operations 5.64 3.06 2.36 1.39 2.16
----------- ----------- ----------- ----------- -----------
Less distributions:
Distributions from net
investment income (0.06) -- -- -- --
Distributions from net realized
gains (0.58) (0.12) (0.31) -- --
----------- ----------- ----------- ----------- -----------
Total distributions (0.64) (0.12) (0.31) -- --
----------- ----------- ----------- ----------- -----------
Proceeds from redemption fees
collected 0.00(a) 0.00(a) 0.00(a) -- --
----------- ----------- ----------- ----------- -----------
Net asset value, end of year $ 20.06 $ 15.06 $ 12.12 $ 10.07 $ 8.68
=========== =========== =========== =========== ===========
TOTAL RETURN (b) 38.62% 25.35% 23.70% 16.01% 33.13%
=========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 147,416 $ 102,945 $ 45,014 $ 24,449 $ 15,288
=========== =========== =========== =========== ===========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees (c) 1.35% 1.50% 1.55% 1.74% 2.11%
After expense reimbursement
and waived fees (c) 1.35%(e) 1.50%(e) 1.50% 1.50% 1.50%
Ratios of net investment income
(loss) to average net assets:
Before expense reimbursement
and waived fees (d) 0.11% (0.46%) (0.72%) (0.88%) (1.16%)
After expense reimbursement
and waived fees (d) 0.11%(e) (0.46%)(e) (0.67%) (0.64%) (0.55%)
Portfolio turnover 10% 22% 3% 45% 56%
(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 years covered, which assumes any dividends or
capital gains distributions, if any, are reinvested in shares of the
Portfolio. Returns shown do not reflect the deduction of taxes a
shareholder would pay on Portfolio distributions, if any, or the
redemption of Portfolio shares.
(c) The ratios of expenses to average net assets do not reflect the
Portfolio's proportionate share of expenses of the underlying investment
companies in which the Portfolio invests.
(d) Recognition of net investment income (loss) by the Portfolio is affected
by the timing of the declaration of dividends by the underlying investment
companies in which the Portfolio invests.
(e) Absent the recoupment of fees previously waived and reimbursed by the
Advisor, the ratios of expenses to average net assets would have been
1.32% and 1.41% and the ratios of net investment income (loss) to average
net assets would have been 0.14% and (0.37%) for the years ended October
31, 2007 and 2006, respectively (Note 2).
See accompanying notes to financial statements.
19
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
FINANCIAL HIGHLIGHTS
===========================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR
- ---------------------------------------------------------------------------------------------------------------------------
YEARS ENDED OCTOBER 31,
---------------------------------------------------------------------------
2007 2006 2005 2004 2003
- ---------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year $ 13.03 $ 11.99 $ 11.46 $ 10.67 $ 9.12
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income 0.18 0.21 0.15 0.14 0.11
Net realized and unrealized gains
on investments 1.34 1.23 0.87 0.83 1.54
----------- ----------- ----------- ----------- -----------
Total from investment operations 1.52 1.44 1.02 0.97 1.65
----------- ----------- ----------- ----------- -----------
Less distributions:
Distributions from net
investment income (0.32) (0.33) (0.24) (0.18) (0.10)
Distributions from net realized gains (0.30) (0.07) (0.25) -- --
----------- ----------- ----------- ----------- -----------
Total distributions (0.62) (0.40) (0.49) (0.18) (0.10)
----------- ----------- ----------- ----------- -----------
Proceeds from redemption fees collected 0.00(a) -- 0.00(a) -- --
----------- ----------- ----------- ----------- -----------
Net asset value, end of year $ 13.93 $ 13.03 $ 11.99 $ 11.46 $ 10.67
=========== =========== =========== =========== ===========
TOTAL RETURN (b) 12.09% 12.32% 9.12% 9.12% 18.20%
=========== =========== =========== =========== ===========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (000's) $ 128,117 $ 97,811 $ 76,560 $ 51,635 $ 33,734
=========== =========== =========== =========== ===========
Ratios of expenses to average net assets (d) 1.06% 1.08% 1.06% 1.12% 1.40%(c)
Ratios of net investment income
to average net assets (e) 1.07% 1.43% 1.06% 1.04% 1.06%(c)
Portfolio turnover 8% 12% 11% 11% 21%
(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 years covered, which assumes any dividends or
capital gains distributions, if any, are reinvested in shares of the
Portfolio. Returns shown do not reflect the deduction of taxes a
shareholder would pay on Portfolio distributions, if any, or the
redemption of Portfolio shares.
(c) Absent the recoupment of fees previously waived and reimbursed by the
Advisor, the ratio of expenses to average net assets would have been 1.34%
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).
(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) Recognition 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.
See accompanying notes to financial statements.
20
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2007
=====================================================================================================
INVESTMENT COMPANIES -- 99.0% SHARES VALUE
- -----------------------------------------------------------------------------------------------------
GROWTH FUNDS -- 37.0%
Alger Capital Appreciation Institutional - Class I (a) ............. 132,837 $ 2,958,289
American Funds AMCAP - Class A ..................................... 139,927 3,139,966
American Funds Growth Fund of America - Class A .................... 274,721 10,543,775
Calamos Growth - Class A (a) ....................................... 55,868 3,926,961
Columbia Acorn Select - Class A (a) ................................ 121,636 3,714,779
Fidelity Capital Appreciation ...................................... 211,615 6,799,183
Goldman Sachs Growth Opportunities - Class A (a) ................... 235,888 6,326,507
iShares Russell 1000 Growth Index (b) .............................. 235 14,969
Janus Orion ........................................................ 116,276 1,577,868
John Hancock Large Cap Equity - Class I (a) ....................... 51,718 1,536,018
Kinetics Paradigm - Institutional Class ............................ 50,986 1,710,571
Marsico 21st Century ............................................... 579,744 11,084,703
------------
53,333,589
------------
GROWTH AND INCOME FUNDS -- 30.7%
Amana Income ....................................................... 141,132 4,575,501
Fidelity Select Utilities Growth ................................... 68,259 4,505,801
iShares Dow Jones Select Dividend Index (b) ........................ 65,100 4,523,148
iShares Dow Jones U.S. Energy Sector Index (b) ..................... 49,400 6,551,922
iShares Russell 1000 Value Index (b) ............................... 28,800 2,475,360
iShares S&P 500 Index (b) .......................................... 17,350 2,691,332
iShares S&P GSSI Natural Resources Index (b) ....................... 10,600 1,421,460
iShares S&P MidCap 400 Value Index (b) ............................. 73,000 6,183,830
Powershares Dynamic Market (b) ..................................... 116,200 6,172,544
Schwab Fundamental U.S. Large Company
Index - Institutional Class (a) ................................. 46,339 498,146
Vanguard 500 Index - Investor Shares ............................... 33,007 4,714,317
------------
44,313,361
------------
FOREIGN STOCK FUNDS -- 20.5%
Dodge & Cox International Stock .................................... 122,108 6,220,164
First Eagle Global - Class A ....................................... 52,592 2,686,930
iShares MSCI EAFE Index (b) ........................................ 82,200 7,090,572
iShares MSCI Emerging Markets Index (b) ............................ 41,400 6,914,214
Janus Overseas ..................................................... 62,617 3,946,138
Oppenheimer International Small Company - Class A .................. 28,417 1,074,453
Phoenix Foreign Opportunity - Class I .............................. 36,697 1,120,367
Schwab Fundamental International Large Company
Index - Institutional Class (a) ................................ 47,126 537,229
------------
29,590,067
------------
SMALL COMPANY FUNDS -- 10.8%
Buffalo Small Cap (a) .............................................. 50,619 1,497,823
iShares S&P SmallCap 600 Growth Index (b) .......................... 21,700 3,171,672
iShares S&P SmallCap 600 Value Index (b) ........................... 22,100 1,683,578
Royce Opportunity - Investor Class (a) ............................. 287,206 4,038,111
William Blair Small Cap Growth - Class I (a) ....................... 183,369 5,224,181
------------
15,615,365
------------
TOTAL INVESTMENT COMPANIES (Cost $94,555,073) ......................... $142,852,382
------------
See accompanying notes to financial statements.
21
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2007
=====================================================================================================
MONEY MARKET SECURITIES -- 1.1% SHARES VALUE
- -----------------------------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(c)
(Cost $1,514,479) ............................................... 1,514,479 $ 1,514,479
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $96,069,552) ............... $144,366,861
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (139,103)
------------
NET ASSETS -- 100.0% .................................................. $144,227,758
============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Variable rate security. The coupon rate shown is the effective interest
rate at October 31, 2007.
See accompanying notes to financial statements.
22
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2007
=====================================================================================================
INVESTMENT COMPANIES -- 97.6% SHARES VALUE
- -----------------------------------------------------------------------------------------------------
GROWTH AND INCOME FUNDS -- 29.8%
Dodge & Cox Stock .................................................. 33,657 $ 5,355,106
Fidelity Select Utilities Growth ................................... 52,978 3,497,108
iShares Dow Jones Select Dividend Index (b) ........................ 22,600 1,570,248
iShares Dow Jones U.S. Energy Sector Index (b) ..................... 29,800 3,952,374
iShares Russell 1000 Value Index (b) ............................... 20,300 1,744,785
iShares S&P 500 Index (b) .......................................... 33,400 5,181,008
iShares S&P GSSI Natural Resources Index (b) ....................... 10,600 1,421,460
iShares S&P MidCap 400 Value Index (b) ............................. 9,000 762,390
Powershares Dynamic Market (b) ..................................... 81,000 4,302,720
Schwab Fundamental U.S. Large Company
Index - Institutional Class (a) ................................. 46,339 498,147
------------
28,285,346
------------
FOREIGN STOCK FUNDS -- 16.2%
Dodge & Cox International Stock .................................... 46,631 2,375,390
First Eagle Global - Class A ....................................... 94,872 4,847,003
iShares MSCI EAFE Index (b) ........................................ 66,800 5,762,168
Phoenix Foreign Opportunity - Class I .............................. 55,046 1,680,550
Schwab Fundamental International Large Company
Index - Institutional Class (a) ................................ 65,291 744,314
------------
15,409,425
------------
GROWTH FUNDS -- 13.1%
American Funds AMCAP - Class A ..................................... 153,493 3,444,395
Columbia Acorn Select - Class A (a) ................................ 31,321 956,546
Fidelity Capital Appreciation ...................................... 30,211 970,675
iShares Russell 1000 Growth Index (b) .............................. 19,600 1,248,520
Marsico 21st Century ............................................... 66,343 1,268,471
S&P MidCap 400 Depositary Receipts (b) ............................. 17,580 2,899,645
Wells Fargo Advantage Endeavor Select - Class A (a) ................ 136,098 1,630,453
------------
12,418,705
------------
CORPORATE BOND FUNDS -- 8.2%
Loomis Sayles Bond - Institutional Class ........................... 521,686 7,804,421
------------
GOVERNMENT BOND FUNDS -- 7.9%
American Century Target Maturities Trust Series 2015 - Investor
Class .......................................................... 90,573 7,494,945
------------
CONVERTIBLE SECURITY FUNDS -- 6.1%
Davis Appreciation & Income ........................................ 114,008 3,608,361
Franklin Convertible Securities - Class A .......................... 128,793 2,207,515
------------
5,815,876
------------
SMALL COMPANY FUNDS -- 5.0%
iShares S&P SmallCap 600 Growth Index (b) .......................... 15,400 2,250,864
iShares S&P SmallCap 600 Value Index (b) ........................... 15,800 1,203,644
Royce Opportunity - Investor Class (a) ............................. 93,558 1,315,429
------------
4,769,937
------------
See accompanying notes to financial statements.
23
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2007
=====================================================================================================
INVESTMENT COMPANIES -- 97.6% (CONTINUED) SHARES VALUE
- -----------------------------------------------------------------------------------------------------
WORLDWIDE BOND FUNDS -- 4.4%
Loomis Sayles Global Bond - Institutional Class .................... 77,236 $ 1,238,091
Templeton Global Bond - Class A .................................... 246,621 2,927,397
------------
4,165,488
------------
HIGH QUALITY BOND FUNDS -- 3.8%
Calvert Social Investment - Class I ................................ 63,529 1,017,741
Dodge & Cox Income ................................................. 205,225 2,583,783
------------
3,601,524
------------
HIGH YIELD BOND FUNDS -- 3.1%
Loomis Sayles Institutional High Income ............................ 346,928 2,952,358
------------
TOTAL INVESTMENT COMPANIES (Cost $72,423,541) ......................... $ 92,718,025
------------
=====================================================================================================
MONEY MARKET SECURITIES -- 2.5% ....................................... SHARES VALUE
- -----------------------------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(c)
(Cost $2,414,485) ............................................... 2,414,485 $ 2,414,485
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $74,838,026) ............... $ 95,132,510
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (80,576)
------------
NET ASSETS -- 100.0% .................................................. $ 95,051,934
============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Variable rate security. The coupon rate shown is the effective interest
rate at October 31, 2007.
See accompanying notes to financial statements.
24
NEW CENTURY OPPORTUNISTIC PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2007
=====================================================================================================
INVESTMENT COMPANIES -- 98.1% SHARES VALUE
- -----------------------------------------------------------------------------------------------------
SECTOR FUNDS -- 45.5%
Alpine International Real Estate Equity - Class Y .................. 9,215 $ 438,442
iShares Dow Jones U.S. Energy Sector Index (b) ..................... 10,500 1,392,615
iShares MSCI Emerging Markets Index (b) ............................ 7,200 1,202,472
iShares S&P GSSI Natural Resources Index (b) ....................... 8,300 1,113,030
iShares S&P GSTI Networking Index (b) .............................. 23,900 905,810
ProFunds Oil & Gas UltraSector - Investor Class .................... 8,040 476,029
Technology Select Sector SPDR (b) .................................. 30,800 877,492
T. Rowe Price Emerging Europe & Mediterranean ...................... 10,121 396,557
------------
6,802,447
------------
LARGE-CAP FUNDS -- 30.6%
Alger Capital Appreciation - Class I (a) .......................... 13,655 304,096
Amana Growth (a) ................................................... 47,194 1,151,076
iShares Russell 1000 Growth Index (b) ............................. 18,600 1,184,820
iShares S&P 500 Growth Index (b) ................................... 4,800 348,000
Marsico 21st Century ............................................... 82,803 1,583,189
------------
4,571,181
------------
MID-CAP FUNDS -- 17.6%
Janus Orion ........................................................ 62,677 850,527
Leuthold Select Industries ......................................... 47,135 1,061,013
S&P MidCap 400 Depositary Receipts (b) ............................. 4,302 709,572
------------
2,621,112
------------
SMALL-CAP FUNDS -- 4.4%
iShares S&P SmallCap 600 Growth Index (b) .......................... 4,500 657,720
------------
TOTAL INVESTMENT COMPANIES (Cost $11,455,077) ......................... $ 14,652,460
------------
=====================================================================================================
MONEY MARKET SECURITIES -- 2.0% SHARES VALUE
- -----------------------------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(c)
(Cost $297,165) ................................................. 297,165 $ 297,165
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $11,752,242) ............... $ 14,949,625
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (14,462)
------------
NET ASSETS -- 100.0% .................................................. $ 14,935,163
============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Variable rate security. The coupon rate shown is the effective interest
rate at October 31, 2007.
25
See accompanying notes to financial statements.
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2007
=====================================================================================================
INVESTMENT COMPANIES -- 97.7% SHARES VALUE
- -----------------------------------------------------------------------------------------------------
EUROPE FUNDS -- 28.2%
AIM European Growth - Class A ...................................... 122,263 $ 6,017,792
iShares MSCI Austria Index (b) ..................................... 166,200 6,774,312
iShares MSCI Belgium Index (b) ..................................... 110,600 3,060,302
iShares MSCI EMU Index (b) ......................................... 25,800 3,275,310
iShares MSCI France Index (b) ...................................... 10,000 399,500
iShares MSCI Germany Index (b) ..................................... 143,200 5,199,592
iShares MSCI Spain Index (b) ....................................... 44,700 3,025,743
iShares MSCI Sweden Index (b) ...................................... 76,000 2,738,280
iShares MSCI Switzerland Index (b) ................................. 47,500 1,308,150
iShares MSCI United Kingdom Index (b) .............................. 129,746 3,540,768
Ivy European Opportunities - Class A ............................... 134,158 6,183,339
------------
41,523,088
------------
DIVERSIFIED FUNDS -- 26.4%
AllianceBernstein International Growth - Class A ................... 101,077 2,370,265
Alpine International Real Estate Equity - Class Y .................. 35,581 1,692,949
Dodge & Cox International Stock .................................... 73,630 3,750,703
iShares MSCI EAFE Index (b) ........................................ 67,800 5,848,428
iShares S&P Global Energy Sector Index (b) ......................... 30,800 4,448,752
Janus Overseas ..................................................... 139,582 8,796,459
Oakmark International - Class I .................................... 118,295 3,195,150
Oppenheimer International Small Company - Class A .................. 176,211 6,662,534
Schwab Fundamental International Large
Company Index - Institutional Class (a) ......................... 190,392 2,170,467
------------
38,935,707
------------
ASIA/PACIFIC FUNDS -- 22.8%
Eaton Vance Greater India - Class A ................................ 156,734 5,991,938
Fidelity Japan ..................................................... 248,245 4,465,931
iShares FTSE/Xinhua China 25 Index (b) ............................. 37,100 8,121,561
iShares MSCI Australia Index (b) ................................... 168,100 5,834,751
iShares MSCI Japan Index (b) ....................................... 143,800 2,067,844
iShares MSCI Pacific Ex-Japan Index (b) ............................ 21,600 3,925,584
Matthews Pacific Tiger ............................................. 91,120 3,123,576
------------
33,531,185
------------
AMERICAS FUNDS -- 13.9%
Fidelity Canada .................................................... 89,164 6,263,798
iShares MSCI Canada Index (b) ...................................... 151,000 5,440,530
iShares MSCI Mexico Index (b) ...................................... 46,800 2,897,388
iShares S&P Latin American 40 Index (b) ............................ 22,200 5,939,166
------------
20,540,882
------------
See accompanying notes to financial statements.
26
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2007
=====================================================================================================
INVESTMENT COMPANIES -- 97.7% (CONTINUED) SHARES VALUE
- -----------------------------------------------------------------------------------------------------
EMERGING MARKETS FUNDS -- 6.4%
iShares MSCI Emerging Markets Index (b) ............................ 29,000 $ 4,843,290
Oppenheimer Developing Markets - Class A ........................... 31,591 1,853,441
T. Rowe Price Emerging Europe & Mediterranean ...................... 71,620 2,806,054
------------
9,502,785
------------
TOTAL INVESTMENT COMPANIES (Cost $82,923,324) ......................... $144,033,647
------------
=====================================================================================================
MONEY MARKET SECURITIES -- 2.4% ....................................... SHARES VALUE
- -----------------------------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(c)
(Cost $3,528,385) ............................................... 3,528,385 $ 3,528,385
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $86,451,709) ............... $147,562,032
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (145,631)
------------
NET ASSETS -- 100.0% .................................................. $147,416,401
============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Variable rate security. The coupon rate shown is the effective interest
rate at October 31, 2007.
See accompanying notes to financial statements.
27
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2007
=====================================================================================================
INVESTMENT COMPANIES -- 95.6% SHARES VALUE
- -----------------------------------------------------------------------------------------------------
LONG/SHORT EQUITY FUNDS -- 19.8%
CGM Focus .......................................................... 47,298 $ 2,913,114
Diamond Hill Long-Short - Class I .................................. 199,352 3,867,421
Hussman Strategic Growth ........................................... 323,801 5,229,385
Nationwide U.S. Growth Leaders Long-Short - Class A ................ 48,401 575,493
Prudent Bear ....................................................... 174,837 1,050,772
Schwab Hedged Equity Select ........................................ 287,437 4,711,096
Templeton Global Long-Short - Class A .............................. 184,578 2,672,682
TFS Market Neutral (a) ............................................. 79,706 1,159,728
Weitz Funds (The) - Partners III Opportunity ....................... 307,218 3,145,910
------------
25,325,601
------------
MERGER ARBITRAGE FUNDS -- 14.7%
Arbitrage - Class R (a) ............................................ 189,276 2,526,828
Enterprise Mergers and Acquisitions - Class A ...................... 395,800 5,212,684
Gabelli ABC ........................................................ 460,026 4,949,878
Merger ............................................................. 364,382 6,103,401
------------
18,792,791
------------
GLOBAL MACRO FUNDS -- 14.2%
Advantage Global Alpha - Class A ................................... 176,909 2,519,189
Calamos Global Growth and Income - Class A (a) ..................... 104,914 1,346,045
First Eagle Global - Class A ....................................... 168,220 8,594,343
Franklin Mutual Discovery - Class Z ................................ 123,259 4,288,184
Oppenheimer International Bond - Class A ........................... 215,098 1,413,192
------------
18,160,953
------------
NATURAL RESOURCES FUNDS -- 10.0%
Blackrock Real Asset Equity (c) .................................... 85,000 1,495,150
DWS Global Commodities Stock (c) .................................. 30,303 626,060
Permanent Portfolio ................................................ 19,842 726,006
PIMCO Commodity Real Return Strategy - Class A ..................... 243,395 3,843,207
PowerShares Global Water Portfolio (b) ............................ 65,000 1,448,850
RS Global Natural Resources - Class A .............................. 57,644 2,375,497
T. Rowe Price New Era .............................................. 8,824 567,138
Vanguard Precious Metals & Minerals ................................ 43,842 1,738,773
------------
12,820,681
------------
ASSET ALLOCATION FUNDS -- 9.9%
Berwyn Income ...................................................... 132,405 1,670,946
FPA Crescent ....................................................... 112,356 3,078,561
Greenspring ........................................................ 71,634 1,798,738
Leuthold Asset Allocation .......................................... 106,340 1,244,178
Leuthold Core Investment ........................................... 151,557 3,284,250
Oakmark Equity and Income - Class I ................................ 53,833 1,582,146
------------
12,658,819
------------
DEEP VALUE/DISTRESSED SECURITIES FUNDS -- 6.9%
Fairholme .......................................................... 118,647 4,131,281
Franklin Mutual Beacon - Class Z ................................... 116,786 2,097,484
Third Avenue Value ................................................. 39,218 2,668,402
------------
8,897,167
------------
See accompanying notes to financial statements.
28
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 2007
=====================================================================================================
INVESTMENT COMPANIES -- 95.6% (CONTINUED) SHARES VALUE
- -----------------------------------------------------------------------------------------------------
OPTION HEDGED FUNDS -- 6.4%
Gateway ............................................................ 196,660 $ 5,726,748
Nuveen Equity Premium Income (c) ................................... 25,000 421,250
Old Mutual Analytic Defensive Equity - Class Z ..................... 143,526 2,068,216
------------
8,216,214
------------
REAL ESTATE FUNDS -- 6.1%
Cohen & Steers International Realty - Class I ...................... 138,550 2,736,355
DJ Wilshire International Real Estate SPDR (b) ..................... 10,000 656,400
JPMorgan U.S. Real Estate - Class A ................................ 31,434 675,201
Third Avenue Real Estate Value ..................................... 104,939 3,722,194
------------
7,790,150
------------
CONVERTIBLE ARBITRAGE FUNDS -- 4.9%
Calamos Market Neutral - A Shares .................................. 475,538 6,329,415
------------
HIGH YIELD FUNDS -- 2.7%
Fidelity Capital & Income .......................................... 153,231 1,379,082
Principal High Yield - Class A ..................................... 147,994 1,294,947
Western Asset Emerging Markets Debt (c) ............................ 40,000 724,800
------------
3,398,829
------------
TOTAL INVESTMENT COMPANIES (Cost $100,581,320) ........................ $122,390,620
------------
=====================================================================================================
STRUCTURED NOTES -- 2.4% .............................................. UNITS VALUE
- -----------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc., Medium-Term Note,
Series C, due 06/10/2008 ........................................ 100,000(d) $ 1,116,000
Morgan Stanley & Co., Inc., Bear Market Plus Note, due 04/20/2008 .. 100,000(d) 924,000
Morgan Stanley & Co., Inc., Bear Market Plus Note, due 07/20/2008 .. 50,000(d) 489,000
Morgan Stanley & Co., Inc., Bear Market Plus Note, due 11/20/2008 .. 60,000(d) 585,000
------------
TOTAL STRUCTURED NOTES (Cost $3,097,500) .............................. $ 3,114,000
------------
=====================================================================================================
MONEY MARKET SECURITIES -- 2.1% ....................................... SHARES VALUE
- -----------------------------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(e)
(Cost $2,737,632) ............................................... 2,737,632 $ 2,737,632
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $106,416,452) .............. $128,242,252
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (125,310)
------------
NET ASSETS -- 100.0% .................................................. $128,116,942
============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Closed-end fund.
(d) $10.00 face value per unit.
(e) Variable rate security. The coupon rate shown is the effective interest
rate at October 31, 2007.
See accompanying notes to financial statements.
29
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
OCTOBER 31, 2007
================================================================================
(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 Aggressive Portfolio), New
Century International Portfolio and New Century Alternative Strategies Portfolio
(together, the "Portfolios"). New Century Capital Portfolio and New Century
Balanced Portfolio commenced operations on January 31, 1989. New Century
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
Washington Trust Bancorp, Inc., 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), fixed income securities (domestic and foreign), or in a
composite of such securities. This Portfolio will maintain at least 25% of its
assets in fixed income securities by selecting registered investment companies
that invest in such securities.
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), fixed income securities that seek appreciation such as high-yield,
lower rated debt securities (domestic or foreign), or other securities that are
selected by those investment companies to achieve growth.
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
30
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2007
================================================================================
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 open-end investment
companies, are valued at their net asset value as reported by such companies.
The Portfolios may also invest in closed-end investment companies, exchange
traded funds, and to a certain extent, directly in securities. Investments in
closed-end investment companies, exchange traded funds and direct investments in
securities are valued at market prices, as described in the paragraph below. 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 or included
in NASDAQ are generally valued at the last reported sales price, the closing
price or the official closing price; and 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 their
fair value as determined in good faith by the Advisor under the procedures
established by the Board of Trustees. Short-term investments are valued at
amortized cost which approximates market value.
31
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2007
================================================================================
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% if redeemed within 30 days of
the date of purchase. No redemption fee will be imposed on the exchange of
shares among 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 years ended October 31,
2007 and 2006, proceeds from redemption fees totaled $29 and $0, respectively
for New Century Capital Portfolio, $56 and $0, respectively for New Century
Balanced Portfolio, $201 and $575, respectively for New Century International
Portfolio and $29 and $0, respectively, for New Century Alternative Strategies
Portfolio. No redemption fees were collected for New Century Opportunistic
Portfolio. Any redemption fees are credited to paid-in capital of 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 or as soon as
the information is available if after the ex-date.
E. DISTRIBUTIONS TO SHAREHOLDERS
Dividends arising from net investment income, if any, are declared and paid
semi-annually to shareholders of New Century Balanced and New Century
Alternative Strategies Portfolios. Dividends from net investment income, if any,
are declared and paid annually for 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. The tax character of distributions
paid during the years ended October 31, 2007 and 2006 was as follows:
32
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2007
=====================================================================================
ORDINARY LONG-TERM TOTAL
YEAR ENDED INCOME CAPITAL GAINS DISTRIBUTIONS
- -------------------------------------------------------------------------------------
NEW CENTURY BALANCED PORTFOLIO
October 31, 2007 ...................... $1,085,845 $ -- $1,085,845
October 31, 2006 ...................... $1,111,490 $ -- $1,111,490
NEW CENTURY INTERNATIONAL PORTFOLIO
October 31, 2007 ...................... $ 383,067 $4,023,814 $4,406,881
October 31, 2006 ...................... $ -- $ 684,174 $ 684,174
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
October 31, 2007 ...................... $2,646,336 $2,021,819 $4,668,155
October 31, 2006 ...................... $2,149,410 $ 455,936 $2,605,346
- -------------------------------------------------------------------------------------
The differences between the book and tax basis of distributions for the years
ended October 31, 2007 and 2006 are permanent in nature and are primarily due to
differing treatments of net short-term gains. There were no distributions for
New Century Capital and New Century Opportunistic for the years ended October
31, 2007 and 2006.
F. COST OF OPERATIONS
The Portfolios bear all costs of their operations other than expenses
specifically assumed by the Advisor. Expenses directly attributable to a
Portfolio are charged to that Portfolio; other expenses are allocated
proportionately among the Portfolios in relation to the net assets of each
Portfolio.
G. USE OF ESTIMATES
In preparing financial statements in accordance with accounting principles
generally accepted in the United States of America, management is required to
make estimates and assumptions that affect the reported amount of assets and
liabilities, the disclosure of contingent assets and liabilities, and revenues
and expenses during the reporting period. Actual results could differ from those
estimates.
(2) INVESTMENT ADVISORY FEES, ADMINISTRATIVE AGREEMENT AND TRUSTEES' FEES
Each Portfolio has a separate Investment Advisory Agreement with the Advisor.
Investment advisory fees for each Portfolio are computed daily and paid monthly.
The investment advisory fees for each Portfolio, except for New Century
Alternative Strategies Portfolio, are computed 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 investment advisory 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.
33
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2007
================================================================================
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. The total expenses do
not include a Portfolio's proportionate share of expenses of the underlying
investment companies in which such Portfolio invests. This contractual fee
waiver is in place until October 31, 2008. Accordingly, for the year ended
October 31, 2007, the Advisor waived $48,660 of advisory fees for New Century
Opportunistic Portfolio. No waiver was necessary for New Century Capital, New
Century Balanced, New Century International or New Century Alternative
Strategies Portfolios.
Any advisory fees waived and/or any other operating expenses absorbed by the
Advisor pursuant to an agreed upon expense cap shall be reimbursed by the
Portfolio to the Advisor, if so requested by the Advisor, provided the aggregate
amount of the Portfolio's current total operating expenses for such fiscal year
does not exceed the applicable existing limitation on Portfolio expenses, and
the reimbursement is made within three years after the year in which the Advisor
incurred the expense. During the year ended October 31, 2007, the Advisor
received $35,096 in recouped fees from New Century International Portfolio.
During the year ended October 31, 2007, the Advisor did not recoup any fees
waived or other operating expenses absorbed from 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 New Century Capital Portfolio.
As of October 31, 2007, 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 ................................. $ 166,870
New Century International Portfolio ................................. $ 18,797
- --------------------------------------------------------------------------------
As of October 31, 2007, the Advisor may recapture a portion of the above amounts
no later than the dates as stated below:
- --------------------------------------------------------------------------------
OCTOBER 31, OCTOBER 31, OCTOBER 31,
2008 2009 2010
- --------------------------------------------------------------------------------
New Century Opportunistic Portfolio .. $ 62,153 $ 56,057 $ 48,660
New Century International Portfolio .. $ 18,797 $ -- $ --
- --------------------------------------------------------------------------------
Fees paid by the Portfolios pursuant to an Administration Agreement with the
Advisor to administer the ordinary course of the Portfolios' business are paid
monthly from a detail of actual expenses incurred in the overseeing of the
Portfolios' affairs. All expenses incurred overseeing the Portfolios' affairs
are reimbursed monthly.
34
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2007
================================================================================
The Portfolios pay each Trustee who is not affiliated with the Advisor a $10,000
annual retainer, paid quarterly, and a per meeting fee of $1,000. The Portfolios
will also pay each Trustee who is not affiliated with the Advisor a $1,000
special meeting fee if held independent of a Regularly Scheduled Board Meeting.
Trustees who are affiliated with the Advisor do not receive compensation.
(3) DISTRIBUTION PLAN AND OTHER TRANSACTIONS WITH AFFILIATES
The Portfolios have adopted a Distribution Plan (the "Plan") under Section 12(b)
of the Investment Company Act of 1940 and Rule 12b-1 thereunder. Under the Plan,
each Portfolio may pay up to .25% of its average daily net assets to the
Distributor for activities primarily intended to result in the sale of shares.
Under its terms, the Plan shall remain in effect from year to year, provided
such continuance is approved annually by a vote of a majority of the Trustees
and a majority of those Trustees who are not "interested persons" of the
Portfolios and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan.
During the year ended October 31, 2007, the Distributor received $209,248,
$159,091, $28,046, $242,158 and $155,766 from New Century Capital, Balanced,
Opportunistic, International and Alternative Strategies Portfolios,
respectively, pursuant to the Plan. As described below, these net amounts were
offset by the sales commissions and other compensation received by the
Distributor.
Also during this time, the Distributor received sales commissions and other
compensation of $125,135, $65,976, $3,703, $61,344 and $121,371 in connection
with the purchase of investment company shares by New Century Capital, Balanced,
Opportunistic, International and Alternative Strategies Portfolios,
respectively. The Distributor has voluntarily agreed to reduce payments made by
each Portfolio pursuant to the Plan in amounts equal to the sales commissions
and other compensation.
Certain officers and trustees of New Century are also officers and/or directors
of the Advisor and the Distributor.
35
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2007
================================================================================
(4) INVESTMENT TRANSACTIONS
For the year ended October 31, 2007, 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 ............. $ 28,146,017 $ 26,743,308 $ 6,078,081 $ 16,525,657 $ 28,921,993
Proceeds from sales of investment securities .. $ 29,798,198 $ 24,198,929 $ 5,986,741 $ 11,852,689 $ 9,006,750
- ----------------------------------------------------------------------------------------------------------------------------
(5) TAX MATTERS
It is each Portfolio's policy to comply with the special provisions of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Portfolio so
qualifies and distributes at least 90% of its taxable net income, the Portfolio
(but not the shareholders) will be relieved of federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Portfolio's intention to declare as
dividends in each calendar year at least 98% of its net investment income
(earned during the calendar year) and 98% of its net realized capital gains
(earned during the twelve months ended October 31) plus undistributed amounts
from prior years.
For the year ended October 31, 2007, the following reclassifications were made
as a result of permanent differences between the financial statement and income
tax reporting requirements:
- ----------------------------------------------------------------------------------------------
DECREASE IN
INCREASE IN ACCUMULATED
ACCUMULATED NET NET REALIZED DECREASE IN
INVESTMENT GAINS(LOSSES) PAID-IN
INCOME (LOSS) ON INVESTMENTS CAPITAL
- ----------------------------------------------------------------------------------------------
New Century Capital Portfolio ................. $ 429,610 $ (126,564) $ (303,046)
New Century Balanced Portfolio ................ 91,406 (91,406) --
New Century Opportunistic Portfolio ........... 64,268 (4,568) (59,700)
New Century International Portfolio ........... 248,106 (248,106) --
New Century Alternative Strategies Portfolio .. 1,038,675 (1,038,675) --
- ----------------------------------------------------------------------------------------------
36
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2007
================================================================================
These reclassifications did not change the net assets of the Portfolios.
The tax character of distributable earnings at October 31, 2007 was as follows:
- -----------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------
Undistributed ordinary income .. $ -- $ 334,483 $ -- $ -- $ 16,198
Unrealized appreciation ........ 48,297,309 20,190,454 3,180,945 61,110,323 21,753,487
Undistributed long-term gains .. 5,981,681 4,962,671 464,131 3,446,047 2,849,409
------------ ------------ ------------ ------------ ------------
Total distributable earnings ... $ 54,278,990 $ 25,487,608 $ 3,645,076 $ 64,556,370 $ 24,619,094
============ ============ ============ ============ ============
- -----------------------------------------------------------------------------------------------------------
During the year ended October 31, 2007, the following amounts of capital loss
carryforwards were utilized to offset current year realized gains:
- --------------------------------------------------------------------------------
New Century Capital ............................................. $ 3,929,333
New Century Balanced ............................................ $ 317,777
New Century Opportunistic ....................................... $ 329,546
- --------------------------------------------------------------------------------
The following information is based upon the federal income tax cost of
investment securities as of October 31, 2007:
- -----------------------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -----------------------------------------------------------------------------------------------------------------------
Tax cost of portfolio investments .. $ 96,069,552 $ 74,942,056 $ 11,768,680 $ 86,451,709 $ 106,488,765
============= ============= ============= ============= =============
Gross unrealized appreciation ...... $ 48,299,310 $ 20,219,480 $ 3,180,945 $ 61,115,631 $ 22,202,652
Gross unrealized depreciation ...... (2,001) (29,026) -- (5,308) (449,165)
------------- ------------- ------------- ------------- -------------
Net unrealized appreciation ........ $ 48,297,309 $ 20,190,454 $ 3,180,945 $ 61,110,323 $ 21,753,487
============= ============= ============= ============= =============
- -----------------------------------------------------------------------------------------------------------------------
The difference between the federal income tax cost of portfolio investments and
the financial statement cost for New Century 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. For New Century Alternative Strategies Portfolio, the
difference between tax basis undistributed ordinary income and undistributed net
investment income is due to the requirement to accrue income on structured notes
for tax purposes.
37
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
OCTOBER 31, 2007
================================================================================
(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.
(7) NEW ACCOUNTING PRONOUNCEMENTS
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB
Interpretation No. 48 ("FIN 48") "Accounting for Uncertainty in Income Taxes."
FIN 48 provides guidance for how uncertain tax positions should be recognized,
measured, presented and disclosed in the financial statements. FIN 48 requires
the evaluation of tax positions taken in the course of preparing each
Portfolio's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority. Tax
positions not deemed to meet the more-likely-than-not threshold would be booked
as a tax benefit or expense in the current year. Adoption of FIN 48 is required
for fiscal years beginning after December 15, 2006 and is to be applied to all
open tax years as of the effective date. Recent SEC guidance allows implementing
FIN 48 in Portfolio NAV calculations as late as the Portfolio's last such
calculation in the first required financial statement period. As a result, the
Portfolios will incorporate FIN 48 in their Semi-Annual Report on April 30,
2008. Management is in the process of determining the impact of the adoption of
FIN 48.
In September 2006, the Financial Accounting Standards Board (FASB) issued
Statement on Financial Accounting Standards ("SFAS") No. 157, "Fair Value
Measurements." This standard establishes a single authoritative definition of
fair value, sets out a framework for measuring fair value and requires
additional disclosures about fair value measurements. SFAS No. 157 applies to
fair value measurements already required or permitted by existing standards.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007 and interim periods within those fiscal years.
The changes to current generally accepted accounting principles from the
application of SFAS No. 157 relate to the definition of fair value, the methods
used to measure fair value, and the expanded disclosures about fair value
measurements. As of October 31, 2007, each Portfolio does not believe the
adoption of SFAS No. 157 will impact the amounts reported in the financial
statements, however, additional disclosures may be required about the inputs
used to develop the measurements and the effect of certain of the measurements
reported on the Statements of Changes in Net Assets for a fiscal period.
38
NEW CENTURY PORTFOLIOS
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
================================================================================
To the Shareholders and Board of Trustees of
New Century Portfolios
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of New Century Capital Portfolio, New Century
Balanced Portfolio, New Century Opportunistic Portfolio, New Century
International Portfolio and New Century Alternative Strategies Portfolio, each a
series of shares of beneficial interest of New Century Portfolios, as of October
31, 2007, and the related statements of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year period
then ended, and the financial highlights for each of the years in the five-year
period then ended. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of October 31, 2007 by correspondence with
the custodian. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of New
Century Capital Portfolio, New Century Balanced Portfolio, New Century
Opportunistic Portfolio, New Century International Portfolio and New Century
Alternative Strategies Portfolio as of October 31, 2007, the results of their
operations for the year then ended, the changes in their net assets for each of
the years in the two-year period then ended, and their financial highlights for
the each of the years in the five-year period then ended, in conformity with
accounting principles generally accepted in the United States of America.
/s/ Briggs, Bunting & Dougherty, LLP
BRIGGS, BUNTING & DOUGHERTY, LLP
Philadelphia, Pennsylvania
December 21, 2007
39
NEW CENTURY PORTFOLIOS
BOARD OF TRUSTEES AND OFFICERS (UNAUDITED)
================================================================================
Overall responsibility for management of New Century rests with the Board of
Trustees. The Trustees serve during the lifetime of New Century and until its
termination, or until death, resignation, retirement or removal. The Trustees,
in turn, elect the officers of New Century to actively supervise its day-to-day
operations. The officers have been elected for an annual term. The following
table provides information regarding each Trustee and officer of New Century:
NUMBER OF
PORTFOLIOS IN OTHER
NAME, POSITION(S) FUND COMPLEX DIRECTORSHIPS
ADDRESS LENGTH OF HELD WITH PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY
AND AGE TIME SERVED NEW CENTURY DURING PAST 5 YEARS BY TRUSTEE TRUSTEE
- --------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES:
- --------------------------------------------------------------------------------------------------------------------------
*Douglas A. Biggar Since 1988 Chairman/ Managing Director, 5 None
40 William Street, Trustee Weston Financial Group, Inc.;
Suite 100 Vice President of Weston
Wellesley, MA 02481 Securities Corporation.
(age 60)
- --------------------------------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES:
- --------------------------------------------------------------------------------------------------------------------------
Stanley H. Cooper, Esq. Since 1988 Trustee Attorney in private practice. 5 None
One Ashford Lane
Andover, MA 01810
(age 60)
- --------------------------------------------------------------------------------------------------------------------------
Roger Eastman, CPA Since 1989 Trustee Retired; Formerly, the Executive 5 None
10682 Gulfshore Drive C-103 Vice President and Chief Operating
Naples, FL 34108 Officer, Danvers Savings Bank
(age 77) (from 3/97 to 12/03).
- --------------------------------------------------------------------------------------------------------------------------
Michael A. Diorio, CPA Since 1988 Trustee Executive Director, Milford 5 Director,
11 Calvin Drive Housing Authority (since 10/04); Milford
Milford, MA 01757 Town Accountant, Town of National
(age 62) Canton, MA (from 3/01 to 10/04). Bank & Trust
since 1996
- --------------------------------------------------------------------------------------------------------------------------
OFFICERS:
- --------------------------------------------------------------------------------------------------------------------------
Wayne M. Grzecki Since 1996 President President, Weston Financial
40 William Street, Group, Inc.; President of
Suite 100 Weston Securities Corporation.
Wellesley, MA 02481
(age 56)
- --------------------------------------------------------------------------------------------------------------------------
Ronald A. Sugameli Since 1997 Vice Managing Director,
40 William Street, President Weston Financial Group, Inc.;
Suite 100 Vice President of
Wellesley, MA 02481 Weston Securities Corporation.
(age 55)
- --------------------------------------------------------------------------------------------------------------------------
40
NEW CENTURY PORTFOLIOS
BOARD OF TRUSTEES AND OFFICERS (UNAUDITED) (CONTINUED)
==========================================================================================================================
NAME, POSITION(S)
ADDRESS LENGTH OF HELD WITH PRINCIPAL OCCUPATION(S)
AND AGE TIME SERVED NEW CENTURY DURING PAST 5 YEARS
- --------------------------------------------------------------------------------------------------------------------------
Nicole M. Tremblay, Esq. Since 2002 CFO, Treasurer, Vice President, Chief Compliance
40 William Street, Chief Officer, Weston Financial Group,
Suite 100 Compliance Inc.; Vice President, Chief Compliance
Wellesley, MA 02481 Officer and Officer, and General Securities Principal
(age 33) Secretary of Weston Securities Corporation
(Since 11/02)
- --------------------------------------------------------------------------------------------------------------------------
* Douglas A. Biggar is considered to be an "interested person" of the
Company within the meaning of Section 2(a)(19) of the Investment Company
Act of 1940, as amended. Mr. Biggar is an interested person because he is
an officer of the Advisor and Distributor.
Additional information about members of the Board of Trustees and executive
officers is available in the Statement of Additional Information ("SAI"). To
obtain a free copy of the SAI, please call 1-888-639-0102.
FEDERAL TAX INFORMATION (UNAUDITED)
================================================================================
In accordance with federal tax requirements, the following provides shareholders
with information concerning distributions from ordinary income and net realized
gains made by the Portfolios during the year ended October 31, 2007. For the
year ended October 31, 2007, New Century International Portfolio and New Century
Alternative Strategies Portfolio paid long-term capital gains distributions of
$4,023,814 and $2,021,819, respectively. For the year ended October 31, 2007,
certain dividends paid by the Portfolios may be subject to a maximum tax rate of
15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003.
New Century Balanced Portfolio, New Century International Portfolio and New
Century Alternative Strategies Portfolio intend to designate up to a maximum of
$1,085,845, $383,067 and $2,646,335, respectively, taxed at a maximum rate of
15%. As required by federal regulations, complete information will be computed
and reported in conjunction with your 2007 Form 1099-DIV.
41
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 (12b-1) fees and other 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 Portfolio'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 sales loads. However, a
redemption fee of 2% is applied on the sale of shares of the Portfolios held for
less than 30 days.
The calculations assume no shares were bought or sold during the period. Your
actual costs may have been higher or lower, depending on the amount of your
investment and the timing of any purchases or redemptions. In addition, the
calculations do not reflect the Portfolio's proportionate share of expenses of
the underlying investment companies in which the Portfolio invest.
42
NEW CENTURY PORTFOLIOS
ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED) (CONTINUED)
================================================================================
More information about the Portfolios' expenses, including recent annual expense
ratios, can be found in this report. For additional information on operating
expenses and other shareholder costs, please refer to the Portfolios'
prospectus.
NEW CENTURY CAPITAL PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2007 October 31, 2007 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,089.00 $ 6.48
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,019.00 $ 6.26
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Capital Portfolio's annualized
expense ratio of 1.23% for the period, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
NEW CENTURY BALANCED PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2007 October 31, 2007 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,032.70 $ 6.87
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,018.45 $ 6.82
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Balanced Portfolio's annualized
expense ratio of 1.34% for the period, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
NEW CENTURY OPPORTUNISTIC PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2007 October 31, 2007 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,129.40 $ 7.94
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,017.74 $ 7.53
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Opportunistic Portfolio's annualized
expense ratio of 1.48% for the period, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
43
NEW CENTURY PORTFOLIOS
ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED) (CONTINUED)
================================================================================
NEW CENTURY INTERNATIONAL PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2007 October 31, 2007 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,188.40 $ 7.28
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,018.55 $ 6.72
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century International Portfolio's annualized
expense ratio of 1.32% for the period, multiplied by the average account
value over the period, multiplied by 184/365 (to reflect the one-half year
period).
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
May 1, 2007 October 31, 2007 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $ 1,000.00 $ 1,048.90 $ 5.47
Based on Hypothetical 5% Return
(before expenses) $ 1,000.00 $ 1,019.86 $ 5.40
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Alternative Strategies Portfolio's
annualized expense ratio of 1.06% for the period, multiplied by the
average account value over the period, multiplied by 184/365 (to reflect
the one-half year period).
44
NEW CENTURY PORTFOLIOS
TRUSTEES APPROVAL OF INVESTMENT
ADVISORY AGREEMENTS (UNAUDITED)
================================================================================
Weston Financial Group, Inc. ("Weston") serves as the investment advisor to each
Portfolio of the Trust. The Board of Trustees most recently approved the
continuance of the investment advisory agreements (collectively, the "Advisory
Agreements") between the Trust, on behalf of each of the Capital, Balanced,
Opportunistic, International and Alternative Strategies Portfolios, and Weston
at a regular meeting of the Board of Trustees held on September 27, 2007. The
September 27, 2007 regular meeting of the Board of Trustees was called, in part,
to act upon the continuance of such Advisory Agreements. These approvals by the
Board of Trustees were unanimous, and therefore included a majority of those
trustees who are not "interested persons" of the Trust, as that term is defined
in the Investment Company Act of 1940, as amended (the Independent Trustees"),
and by a majority of the entire Board.
Prior to the meeting, the Board received and reviewed certain materials from
Weston. The materials included: (i) a memorandum prepared by independent counsel
setting forth the Board's fiduciary duties, responsibilities and the factors
they should consider in their evaluation of the renewal of the Advisory
Agreements; (ii) information on the background and experience of each Portfolio
Manager; (iii) information from a third-party provider concerning investment
management fees and total operating expenses paid by other, similar mutual
funds; (iv) several memorandums from the Investment Company Institute concerning
mutual fund fees and expenses in the industry; (v) a copy of the Advisory
Agreements; and (vi) performance information comparing each Portfolio to its
relevant benchmark index.
The Board of Trustees decided to approve the renewal of the Advisory Agreements
for a one-year period commencing November 1, 2007 based upon their evaluation
of: (i) the long-term relationship between Weston and the Trust; (ii) Weston's
commitment to compliance; (iii) the nature, extent and quality of the services
provided; (iv) the performance of each Portfolio; and (v) the costs of the
services provided and the profitability of each entity from its relationship
with the Portfolios.
It was noted that during the Board's consideration of the factors listed above,
different trustees gave different weight to different items. In general, the
Independent Trustees considered it to be most significant that the proposed
investment advisory arrangements would assure a continuity of relationships to
service the Portfolios. Each of the Independent Trustees rated as a very
important factor the strong management support that Weston provides to the
Portfolios. The trustees expressed their approval of the commitment to
compliance that Weston has evidenced over the years. Each trustee noted
specifically that management has been extremely responsive to any issues raised
by the Board. They also expressed their pleasure with the strong relationship
that has developed between the Board and the Trust's Chief Compliance Officer.
The Board noted that this was the second year since the change in control of
Weston, whereby it became a subsidiary of The Washington Trust Company,
concluding that the change had been beneficial to the Portfolios and their
shareholders.
45
NEW CENTURY PORTFOLIOS
TRUSTEES APPROVAL OF INVESTMENT
ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED)
================================================================================
The trustees considered the terms and conditions of the existing Advisory
Agreements that were being renewed, noting that the terms and conditions were
the same, including the provision for advisory fees. The trustees also
considered the nature, quality and scope of the investment advisory services
that had been provided to the Portfolios by Weston in the past and the services
that are expected to continue in the future. Further, the trustees considered
the Weston personnel assigned to service the Portfolios.
The trustees considered the performance results of each of the Portfolios over
various time periods. They reviewed information comparing each Portfolio's
performance with the performance of comparable funds and with each Portfolio's
benchmark. The also reviewed information provided by Morningstar, Inc. on each
Portfolio's risk-adjusted performance. In general, the trustees noted that the
Portfolios had been performing competitively in the industry and were pleased
with their results, including their Morningstar ratings. The trustees expressed
their satisfaction with the experience and performance of the two portfolio
managers. They also noted Weston's prudent investment management style.
The trustees considered the investment advisory fees paid by each Portfolio
directly and in comparison to the fees paid by similar funds within the
industry. The trustees were advised that the investment advisory fee charged by
the Alternative Strategies Portfolio was comparable to the investment advisory
fees charged by other, similar funds within the industry, and that the
investment advisory fees charged by the other Portfolios were on track with
other similar funds within the industry. It was noted that the Capital,
Balanced, Opportunistic and International Portfolios do offer a breakpoint for
assets in excess of $100 million that could lower the investment advisory fees
as assets grow. The trustees also discussed Weston's expense limitation
agreements with each Portfolio. Pursuant to these expense limitation agreements,
Weston has agreed to waive fees and/or reimburse certain other expenses so that
the ratio of total operating expenses of each Portfolio was limited to 1.50% of
such Portfolio's average net assets. The trustees decided that the investment
advisory fees charged were fair and reasonable. It also noted that the
breakpoints and expense limitation agreements demonstrated Weston's commitment
to the Trust and its shareholders.
The trustees also reviewed the average total expense ratios of similar equity
mutual funds within the industry. They discussed the mutual funds' fixed
expenses, such as the use of outside service providers for transfer agency and
fund accounting. It was also noted that, as a fund-of-funds complex, the Trust
had a different expense ratio structure than most other funds within the
industry.
The trustees discussed the growth in assets in the Trust during the recent year.
The trustees considered the extent to which economies of scale would be realized
as a Portfolio grows, noting favorably that economies had been realized in
certain Portfolios with respect to the overall total expense ratio. Economies
had been realized in Portfolios, such as the Capital and International
Portfolios, which were above the investment advisory fee breakpoint amount of
$100 million. They also noted that four out of the five Portfolios had total
operating expense ratios well below the expense cap limit.
46
NEW CENTURY PORTFOLIOS
TRUSTEES APPROVAL OF INVESTMENT
ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED)
================================================================================
The trustees noted that the total fees and expenses of the Portfolios were
deemed to be fair and reasonable based on the information provided at the Board
Meeting with respect to other funds in the industry.
The trustees reviewed and discussed other aspects of Weston, such as the
profitability of the investment advisor, the benefits each party received from
such long-term relationship, and the fact that Weston and its affiliates
received other compensation from the relationship such as fees as administrator
and fees under a distribution (12b-1) plan. The trustees also noted that one of
the trustees, Mr. Biggar, was an affiliate of Weston and the Trust's Distributor
and would benefit by the continuance of the investment advisory and distribution
agreements.
In their deliberations, the Board did not rely upon comparisons of the services
to be rendered and the amounts to be paid under the contract with those under
other investment advisory contracts, such as contracts of the same and other
investment advisers with other registered investment companies or other types of
clients (e.g., pension funds and other institutional investors). These factors
were considered not to be relevant in a situation where the trustees were
determining whether to re-approve the agreements with an existing entity on the
same terms and conditions. Such factors would be relevant to considering and
approving new investment advisory agreements with other investment advisory
entities.
47
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================================================================================
INVESTMENT ADVISOR AND ADMINISTRATOR
Weston Financial Group, Inc.
Wellesley, MA
DISTRIBUTOR
Weston Securities Corporation
Wellesley, MA
COUNSEL
Greenberg 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.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics that applies to the registrant's principal executive officer,
principal financial officer, principal accounting officer or controller, or
persons performing similar functions, regardless of whether these individuals
are employed by the registrant or a third party. Pursuant to Item 12(a)(1), a
copy of registrant's code of ethics is filed as an exhibit to this Form N-CSR.
During the period covered by this report, the code of ethics has not been
amended, and the registrant has not granted any waivers, including implicit
waivers, from the provisions of the code of ethics.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of trustees has determined that the registrant has at
least one audit committee financial expert serving on its audit committee. The
name of the audit committee financial expert is Roger Eastman. Mr. Eastman is
"independent" for purposes of this Item.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) AUDIT FEES. The aggregate fees billed for professional services
rendered by the principal accountant for the audit of the
registrant's annual financial statements or for services that are
normally provided by the accountant in connection with statutory and
regulatory filings or engagements were $50,000 and $45,000 with
respect to the registrant's fiscal years ended October 31, 2007 and
2006, respectively.
(b) AUDIT-RELATED FEES. No fees were billed in either of the last two
fiscal years for assurance and related services by the principal
accountant that are reasonably related to the performance of the
audit of the registrant's financial statements and are not reported
under paragraph (a) of this Item.
(c) TAX FEES. The aggregate fees billed for professional services
rendered by the principal accountant for tax compliance, tax advice,
and tax planning were $10,000 and $10,000 with respect to the
registrant's fiscal years ended October 31, 2007 and 2006,
respectively. The services comprising these fees are the preparation
of the registrant's federal income and excise tax returns.
(d) ALL OTHER FEES. No fees were billed in either of the last two fiscal
years for products and services provided by the principal accountant,
other than the services reported in paragraphs (a) through (c) of
this Item.
(e)(1) The audit committee has not adopted pre-approval policies and
procedures described in paragraph (c)(7) of Rule 2-01 of Regulation
S-X.
(e)(2) None of the services described in paragraph (b) through (d) of this
Item were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Less than 50% of hours expended on the principal accountant's
engagement to audit the registrant's financial statements for the
most recent fiscal year were attributed to work performed by persons
other than the principal accountant's full-time, permanent employees.
(g) During the fiscal years ended October 31, 2007 and 2006, aggregate
non-audit fees of $10,000 and $10,000, respectively, were billed by
the registrant's accountant for services rendered to the registrant.
No non-audit fees were billed in either of the last two fiscal years
by the registrant's accountant for services rendered to the
registrant's investment adviser (not including any sub-adviser whose
role is primarily portfolio management and is subcontracted with or
overseen by another investment adviser), and any entity controlling,
controlled by, or under common control with the adviser that provides
ongoing services to the registrant.
(h) The principal accountant has not provided any non-audit services that
were not previously approved to the registrant's investment adviser
(not including any sub-adviser whose role is primarily portfolio
management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or
under common control with the investment adviser that provides
ongoing services to the registrant.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable [schedule filed with Item 1]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has a standing nominating committee responsible for the selection
and nomination to serve as trustees of the registrant. Although the nominating
committee expects to be able to find an adequate number of qualified candidates
to serve as trustees, the nominating committee is willing to consider
nominations received from shareholders. Shareholders wishing to submit a
nomination should do so by notifying the Secretary of the registrant, in
writing, at the following address: 40 William Street, Suite 100, Wellesley,
Massachusetts 02481-3902.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) as of a date within 90 days of the filing date of this report, the
registrant's principal executive officer and principal financial officer have
concluded that such disclosure controls and procedures are reasonably designed
and are operating effectively to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to them
by others within those entities, particularly during the period in which this
report is being prepared, and that the information required in filings on Form
N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)
that occurred during the 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: Attached hereto
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)): Attached hereto
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the Act (17 CFR 270.23c-1) sent or given during the period covered by the report
by or on behalf of the registrant to 10 or more persons: Not applicable
(b) Certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)): Attached hereto
Exhibit 99.CODE ETH Code of Ethics
Exhibit 99.CERT Certifications required by Rule 30a-2(a) under the Act
Exhibit 99.906CERT Certifications required by Rule 30a-2(b) under the Act
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) New Century Portfolios
--------------------------------------------------------------------
By (Signature and Title)* /s/ Wayne M. Grzecki
-----------------------------------------------------
Wayne M. Grzecki, President
Date January 4, 2008
------------------------------------------
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 January 4, 2008
------------------------------------------
By (Signature and Title)* /s/ Nicole M. Tremblay
-----------------------------------------------------
Nicole M. Tremblay, Treasurer
Date January 4, 2008
------------------------------------------
* Print the name and title of each signing officer under his or her signature.