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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, 2008
----------------------------
Date of reporting period: April 30, 2008
----------------------------
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 OMITTED]
NEW CENTURY
PORTFOLIOS
NEW CENTURY CAPITAL
NEW CENTURY BALANCED
NEW CENTURY OPPORTUNISTIC
NEW CENTURY INTERNATIONAL
NEW CENTURY ALTERNATIVE STRATEGIES
SEMI-ANNUAL REPORT
Six Months Ended April 30, 2008
(Unaudited)
40 WILLIAM STREET, SUITE 100, WELLESLEY MA 02481
781-239-0445 888-639-0102 FAX 781-237-1635
CONTENTS
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER 1-2
PORTFOLIO INFORMATION 3-7
NEW CENTURY PORTFOLIOS
Schedules of Investments 8-17
Statements of Assets and Liabilities 18
Statements of Operations 19
Statements of Changes in Net Assets 20-22
Financial Highlights 23-27
Notes to Financial Statements 28-36
About Your Portfolio's Expenses 37-39
LETTER TO SHAREHOLDERS JUNE 2008
================================================================================
Dear Fellow Shareholders:
I am pleased to present our Semi-Annual Report for the six-month period ended
April 30, 2008. This Report presents important financial information for each of
the New Century Portfolios. I also invite you to visit our website at
www.newcenturyportfolios.com for additional information.
During the six-month period ended April 30, 2008, volatility and uncertainty
plagued the financial markets. The markets were weighed down by inflation
(particularly in the energy and the food sectors), a decline in housing prices,
continuing sub-prime concerns, and a fear that consumer discretionary spending
would wither. On the plus side, however, corporate profits remain more resilient
than anticipated, the Government has employed monetary and fiscal measures to
stimulate the economy, and the decline of the dollar promotes the sale of U.S.
goods and services overseas.
During the period, the New Century Capital Portfolio increased its allocation to
the large-cap and the international sectors and maintained an underweighted
exposure to the small-cap sector. The New Century Capital Portfolio declined
9.74% as compared to the S&P 500(R) Composite Index which dropped 9.64% during
the past six months. After the decline during the first five months of the
period, we were pleased with April's positive market returns. During April, New
Century Capital gained 6.05% as compared to the S&P 500(R) Composite Index which
returned 4.87% during the month.
Although the relative weighting to fixed income increased slightly, the New
Century Balanced Portfolio maintained allocations in each of its market sectors
during the period. During the period, the New Century Balanced Portfolio
declined 4.97%, as compared to the S&P 500(R) Composite Index which fell 9.64%
and the Lehman Brothers Intermediate Government/Credit Index which gained 4.45%.
For the month of April, the New Century Balanced returned 3.95% as compared to
the S&P 500(R) Composite Index which gained 4.87% and the Lehman Brothers
Intermediate Government/Credit Index which dropped 0.74% during the month.
The New Century Opportunistic Portfolio increased its allocation to the
large-cap growth sector while maintaining an underweighted allocation to the
mid-cap and small-cap sectors. The Portfolio also maintained a higher cash
balance during the period. The New Century Opportunistic Portfolio declined
7.83% as compared to the Russell 3000 Growth Index which dropped 9.68% during
the six-month period. For the month of April, the New Century Opportunistic
Portfolio returned 6.50% as compared to the Russell 3000 Growth Index which
gained 5.24% during the month.
Over the six-month period, the New Century International Portfolio increased its
exposure to Europe. In the Asia/Pacific sector, the Portfolio's exposure to
Japan was also increased. The Portfolio also maintained a higher cash balance
during the period. During the period, the New Century International Portfolio
declined 10.87%. The international equity markets, as measured by the MSCI EAFE
Index, fell 9.21%. For the month of April, the New Century International
Portfolio returned 6.47% as compared to the MSCI EAFE Index which gained 5.43%
during the month.
The New Century Alternative Strategies Portfolio increased its allocation to the
global macro category and decreased its allocation to the option hedged and
long/short categories. The Portfolio maintained diversified positions in ten
distinct investment categories. The
1
high-yield category was expanded to include other fixed income strategies to
take advantage of volatility in the municipal bond market. The New Century
Alternative Strategies Portfolio declined 2.37% during the period, as compared
to the Lehman Brothers Intermediate Government/Credit Index, which gained 4.45%
and the S&P 500(R) Composite Index which declined by 9.64%. For the month of
April, the New Century Alternative Strategies Portfolio returned 2.62% as
compared to the S&P 500(R) Composite Index which gained 4.87% and the Lehman
Brothers Intermediate Government/Credit Index which dropped 0.74% during the
month.
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 selection of
New Century as part of your long-term investment strategy.
Sincerely,
/s/ Wayne M. Grzecki
Wayne M. Grzecki
President
2
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2008 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Growth Funds - 36.8%
Growth and Income Funds - 32.2%
Foreign Stock Funds - 20.3%
Small Company Funds - 10.1%
Cash Equivalents - 0.6%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- -------------------- ---------------
American Funds Growth Fund of America - Class A 7.5%
Marsico 21st Century 7.4%
iShares Dow Jones U.S. Energy Sector Index 5.5%
iShares MSCI EAFE Index 4.8%
iShares MSCI Emerging Markets Index 4.7%
Goldman Sachs Growth Opportunities - Class A 4.7%
Dodge & Cox International Stock 4.4%
iShares S&P MidCap 400 Value Index 4.4%
Fidelity Capital Appreciation 4.4%
Powershares Dynamic Market 4.4%
3
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2008 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Growth and Income Funds - 30.3%
Foreign Stock Funds - 15.7%
Growth Funds - 12.9%
Government Bond Funds - 9.3%
Corporate Bond Funds - 9.0%
Convertible Security Funds - 6.2%
Worldwide Bond Funds - 5.0%
High Quality Bond Funds - 4.2%
High Yield Bond Funds - 3.4%
Small Company Funds - 3.4%
Cash Equivalents - 0.6%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- -------------------- ---------------
American Century Target Maturities Trust
Series 2015 - Investor Class 9.3%
Loomis Sayles Bond - Institutional Class 9.0%
iShares MSCI EAFE Index 5.8%
First Eagle Global - Class A 5.6%
Dodge & Cox Stock 5.5%
iShares S&P 500 Index 5.3%
iShares Dow Jones U.S. Energy Sector Index 4.9%
Powershares Dynamic Market 4.5%
Davis Appreciation & Income 3.8%
Fidelity Select Utilities Growth 3.8%
4
NEW CENTURY OPPORTUNISTIC PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2008 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Sector Funds - 40.8%
Large-Cap Funds - 33.6%
Mid-Cap Funds - 15.7%
Small-Cap Funds - 3.7%
Cash Equivalents - 6.2%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- -------------------- ---------------
iShares Dow Jones U.S. Energy Sector Index 9.5%
John Hancock Large Cap Equity - Class I 9.4%
Marsico 21st Century 8.7%
iShares S&P GSSI Natural Resources Index 7.3%
iShares Russell 1000 Growth Index 6.8%
Amana Growth 6.7%
iShares MSCI Emerging Markets Index 6.7%
Leuthold Select Industries 6.4%
Janus Orion 5.1%
Technology Select Sector SPDR 4.7%
5
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2008 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Europe Funds - 27.4%
Diversified Funds - 25.2%
Asia/Pacific Funds - 21.6%
Americas Funds - 14.4%
Emerging Markets Funds - 6.3%
Cash Equivalents - 5.1%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- -------------------- ---------------
Janus Overseas 6.1%
iShares MSCI Austria Index 4.5%
iShares S&P Latin American 40 Index 4.5%
iShares FTSE/Xinhua China 25 Index 4.3%
Fidelity Canada 4.2%
Ivy European Opportunities - Class A 4.0%
AIM European Growth - Class A 3.9%
iShares MSCI EAFE Index 3.7%
Fidelity Japan 3.7%
Oppenheimer International Small Company - Class A 3.6%
6
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2008 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Long/Short Equity Funds - 17.1%
Global Macro Funds - 15.3%
Merger Arbitrage Funds - 14.2%
Asset Allocation Funds - 10.7%
Natural Resources Funds - 9.0%
High Yield/Fixed Income Funds - 5.6%
Real Estate Funds - 5.4%
Deep Value/Distressed Securities Funds - 5.4%
Option Hedged Funds - 4.9%
Convertible Arbitrage Funds - 4.5%
Structured Notes - 3.1%
Cash Equivalents - 4.8%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- -------------------- ---------------
First Eagle Global - Class A 5.8%
Gateway 4.5%
Calamos Market Neutral - A Shares 4.5%
Merger 4.0%
Hussman Strategic Growth 3.7%
Ivy Asset Strategy - Class A 3.5%
Diamond Hill Focus Long-Short - Class I 3.5%
PIMCO Commodity Real Return Strategy - Class A 3.5%
Gabelli ABC 3.4%
BlackRock Global Allocation - Class A 3.0%
7
NEW CENTURY CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 99.4% SHARES VALUE
- --------------------------------------------------------------------------------
GROWTH FUNDS -- 36.8%
Alger Capital Appreciation Institutional -
Class I (a) .................................. 70,537 $ 1,390,998
American Funds AMCAP - Class A ................. 148,444 2,798,179
American Funds Growth Fund of America - Class A.. 294,589 9,700,818
Calamos Growth - Class A (a) ................... 63,285 3,483,855
Columbia Acorn Select - Class A (a) ............ 123,610 3,238,569
Fidelity Capital Appreciation .................. 229,094 5,656,324
Goldman Sachs Growth Opportunities - Class A (a). 270,764 6,021,786
iShares Russell 1000 Growth Index (b) .......... 235 13,503
Janus Orion .................................... 116,662 1,499,103
John Hancock Large Cap Equity - Class I ........ 132,407 4,182,728
Marsico 21st Century (a) ....................... 604,207 9,558,547
------------
47,544,410
------------
GROWTH AND INCOME FUNDS -- 32.2%
Amana Trust Income .............................. 143,474 4,401,771
Fidelity Select Utilities Growth ................ 69,352 4,213,135
iShares Dow Jones Select Dividend Index (b) ..... 65,100 3,870,846
iShares Dow Jones U.S. Energy Sector Index (b) .. 49,400 7,050,862
iShares Russell 1000 Value Index (b) ............ 28,800 2,203,488
iShares S&P 500 Index (b) ....................... 17,350 2,404,536
iShares S&P GSSI Natural Resources Index (b) .... 10,600 1,478,276
iShares S&P MidCap 400 Value Index (b) .......... 73,000 5,686,700
Powershares Dynamic Market (b) .................. 116,200 5,639,186
Schwab Fundamental U.S. Large Company
Index - Institutional Class ................... 46,793 443,134
Vanguard 500 Index - Investor Shares ............ 33,351 4,257,911
------------
41,649,845
------------
FOREIGN STOCK FUNDS -- 20.3%
Dodge & Cox International Stock ................. 129,411 5,714,806
First Eagle Global - Class A .................... 58,958 2,682,598
iShares MSCI EAFE Index (b) ..................... 82,200 6,231,582
iShares MSCI Emerging Markets Index (b) ......... 41,400 6,071,724
Janus Overseas .................................. 68,707 3,787,793
Oppenheimer International Small Company - Class A 34,416 793,633
Phoenix Foreign Opportunity - Class I ........... 37,594 1,013,902
------------
26,296,038
------------
SMALL COMPANY FUNDS -- 10.1%
Buffalo Small Cap (a) ........................... 56,237 1,254,077
iShares S&P SmallCap 600 Growth Index (b) ....... 21,700 2,809,716
iShares S&P SmallCap 600 Value Index (b) ........ 22,100 1,484,457
Royce Opportunity - Investor Class .............. 333,065 3,443,891
William Blair Small Cap Growth - Class I (a) .... 195,364 4,133,897
------------
13,126,038
------------
TOTAL INVESTMENT COMPANIES (Cost $99,288,837)....... $128,616,331
------------
See accompanying notes to financial statements.
8
NEW CENTURY CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
MONEY MARKET SECURITIES -- 0.7% SHARES VALUE
- --------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional
Class, 2.522%(c)
(Cost $864,800)............................... 864,800 $ 864,800
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $100,153,637) $129,481,131
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)..... (149,616)
------------
NET ASSETS -- 100.0%................................ $129,331,515
============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Variable rate security. The coupon rate shown is the effective interest
rate at April 30, 2008.
See accompanying notes to financial statements.
9
NEW CENTURY BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 99.4% SHARES VALUE
- --------------------------------------------------------------------------------
GROWTH AND INCOME FUNDS -- 30.3%
Dodge & Cox Stock ............................... 38,196 $ 4,751,247
Fidelity Select Utilities Growth ................ 53,826 3,269,960
iShares Dow Jones Select Dividend Index (b) ..... 22,600 1,343,796
iShares Dow Jones U.S. Energy Sector Index (b).. 29,800 4,253,354
iShares Russell 1000 Value Index (b) ............ 20,300 1,553,153
iShares S&P 500 Index (b) ....................... 33,400 4,628,906
iShares S&P GSSI Natural Resources Index (b) .... 10,600 1,478,276
iShares S&P MidCap 400 Value Index (b) .......... 9,000 701,100
Powershares Dynamic Market (b) .................. 81,000 3,930,930
Schwab Fundamental U.S. Large Company Index -
Institutional Class ........................... 46,793 443,134
------------
26,353,856
------------
FOREIGN STOCK FUNDS -- 15.7%
Dodge & Cox International Stock ................. 49,420 2,182,401
First Eagle Global - Class A .................... 106,356 4,839,189
iShares MSCI EAFE Index (b) ..................... 66,800 5,064,108
Phoenix Foreign Opportunity - Class I ........... 56,391 1,520,853
------------
13,606,551
------------
GROWTH FUNDS -- 12.9%
American Funds AMCAP - Class A .................. 162,837 3,069,470
Columbia Acorn Select - Class A (a) ............. 31,829 833,923
iShares Russell 1000 Growth Index (b) ........... 19,600 1,126,216
John Hancock Large Cap Equity - Class I ......... 24,907 786,799
Marsico 21st Century (a) ........................ 69,142 1,093,826
S&P MidCap 400 Depositary Receipts (b) .......... 17,580 2,676,555
Wells Fargo Advantage Endeavor Select - Class A (a) 137,289 1,570,582
------------
11,157,371
------------
GOVERNMENT BOND FUNDS -- 9.3%
American Century Target Maturities Trust Series
2015 - Investor Class ......................... 90,573 8,102,693
------------
CORPORATE BOND FUNDS -- 9.0%
Loomis Sayles Bond - Institutional Class ........ 540,985 7,806,410
------------
CONVERTIBLE SECURITY FUNDS -- 6.2%
Davis Appreciation & Income ..................... 120,487 3,310,996
Franklin Convertible Securities - Class A ....... 135,796 2,070,894
------------
5,381,890
------------
WORLDWIDE BOND FUNDS -- 5.0%
Loomis Sayles Global Bond - Institutional Class . 79,391 1,299,636
Templeton Global Bond - Class A ................. 257,831 3,057,877
------------
4,357,513
------------
HIGH QUALITY BOND FUNDS -- 4.2%
Calvert Social Investment - Class I ............. 66,202 1,036,726
Dodge & Cox Income .............................. 210,621 2,645,405
------------
3,682,131
------------
See accompanying notes to financial statements.
10
NEW CENTURY BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 99.4% (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------
HIGH YIELD BOND FUNDS -- 3.4%
Loomis Sayles Institutional High Income ......... 376,807 $ 2,965,473
------------
SMALL COMPANY FUNDS -- 3.4%
iShares S&P SmallCap 600 Growth Index (b) ....... 15,400 1,993,992
Royce Opportunity - Investor Class .............. 89,080 921,083
------------
2,915,075
------------
TOTAL INVESTMENT COMPANIES (Cost $74,182,266)....... $ 86,328,963
------------
================================================================================
MONEY MARKET SECURITIES -- 0.7% SHARES VALUE
- --------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional
Class, 2.522%(c)
(Cost $625,197) ............................... 625,197 $ 625,197
------------
TOTAL INVESTMENTS AT VALUE -- 100.1%
(Cost $74,807,463) .............................. $ 86,954,160
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)..... (81,986)
------------
NET ASSETS -- 100.0%................................ $ 86,872,174
============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Variable rate security. The coupon rate shown is the effective interest
rate at April 30, 2008.
See accompanying notes to financial statements.
11
NEW CENTURY OPPORTUNISTIC PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 93.8% SHARES VALUE
- --------------------------------------------------------------------------------
SECTOR FUNDS -- 40.8%
Alpine International Real Estate Equity - Class Y 9,849 $ 354,765
iShares Dow Jones U.S. Energy Sector Index (b) .. 10,500 1,498,665
iShares MSCI Emerging Markets Index (b) ......... 7,200 1,055,952
iShares S&P GSSI Natural Resources Index (b) .... 8,300 1,157,518
iShares S&P GSTI Networking Index (b) ........... 23,900 720,346
ProFunds Oil & Gas UltraSector - Investor Class.. 8,281 510,933
Technology Select Sector SPDR (b) ............... 30,800 740,740
T. Rowe Price Emerging Europe & Mediterranean (a) 11,241 387,477
------------
6,426,396
------------
LARGE-CAP FUNDS -- 33.6%
Amana Growth (a) ................................ 47,605 1,060,162
iShares Russell 1000 Growth Index (b) ........... 18,600 1,068,756
iShares S&P 500 Growth Index (b) ................ 4,800 318,480
John Hancock Large Cap Equity - Class I ......... 46,744 1,476,631
Marsico 21st Century (a) ........................ 86,297 1,365,214
------------
5,289,243
------------
MID-CAP FUNDS -- 15.7%
Janus Orion ..................................... 62,885 808,070
Leuthold Select Industries ...................... 64,321 1,016,266
S&P MidCap 400 Depositary Receipts (b) .......... 4,302 654,980
------------
2,479,316
------------
SMALL-CAP FUNDS -- 3.7%
iShares S&P SmallCap 600 Growth Index (b) ....... 4,500 582,660
------------
TOTAL INVESTMENT COMPANIES (Cost $13,077,165)....... $ 14,777,615
------------
================================================================================
MONEY MARKET SECURITIES -- 6.3% SHARES VALUE
- --------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional
Class, 2.522%(c)
(Cost $993,584)................................ 993,584 $ 993,584
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $14,070,749) $ 15,771,199
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)..... (12,820)
------------
NET ASSETS -- 100.0%................................ $ 15,758,379
============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Variable rate security. The coupon rate shown is the effective interest
rate at April 30, 2008.
See accompanying notes to financial statements.
12
NEW CENTURY INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 94.9% SHARES VALUE
- --------------------------------------------------------------------------------
EUROPE FUNDS -- 27.4%
AIM European Growth - Class A ................... 133,819 $ 5,339,384
iShares MSCI Austria Index (b) .................. 166,200 6,166,020
iShares MSCI Belgium Index (b) .................. 110,600 2,739,562
iShares MSCI EMU Index (b) ...................... 25,800 2,919,012
iShares MSCI France Index (b) ................... 10,000 364,600
iShares MSCI Germany Index (b) .................. 143,200 4,679,776
iShares MSCI Spain Index (b) .................... 53,200 3,339,896
iShares MSCI Sweden Index (b) ................... 76,000 2,386,400
iShares MSCI Switzerland Index (b) .............. 47,500 1,226,925
iShares MSCI United Kingdom Index (b) ........... 129,746 2,963,399
Ivy European Opportunities - Class A ............ 149,793 5,495,918
------------
37,620,892
------------
DIVERSIFIED FUNDS -- 25.2%
AllianceBernstein International Growth - Class A. 107,900 2,148,280
Alpine International Real Estate Equity - Class Y 38,030 1,369,850
Dodge & Cox International Stock ................. 78,034 3,445,977
iShares MSCI EAFE Index (b) ..................... 67,800 5,139,918
iShares S&P Global Energy Sector Index (b) ...... 30,800 4,494,336
Janus Overseas .................................. 153,156 8,443,486
Oakmark International - Class I ................. 142,969 2,803,627
Oppenheimer International Small Company - Class A 213,409 4,921,210
Schwab Fundamental International Large Company
Index - Institutional Class ................... 192,490 1,942,223
------------
34,708,907
------------
ASIA/PACIFIC FUNDS -- 21.6%
Eaton Vance Greater India - Class A (a) ......... 178,342 4,804,530
Fidelity Japan .................................. 357,721 5,090,376
iShares FTSE/Xinhua China 25 Index (b) .......... 37,100 5,889,996
iShares MSCI Australia Index (b) ................ 168,100 4,669,818
iShares MSCI Japan Index (b) .................... 143,800 1,909,664
iShares MSCI Pacific Ex-Japan Index (b) ......... 21,600 3,155,760
Matthews Pacific Tiger .......................... 122,814 3,215,282
ProFunds UltraJapan - Investor Class ............ 35,386 989,738
------------
29,725,164
------------
AMERICAS FUNDS -- 14.4%
Fidelity Canada ................................. 94,584 5,762,051
iShares MSCI Canada Index (b) ................... 151,000 4,901,460
iShares MSCI Mexico Index (b) ................... 51,800 3,026,674
iShares S&P Latin America 40 Index (b) .......... 22,200 6,138,300
------------
19,828,485
------------
See accompanying notes to financial statements.
13
NEW CENTURY INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 94.9% (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------
EMERGING MARKETS FUNDS -- 6.3%
iShares MSCI Emerging Markets Index (b) ......... 29,000 $ 4,253,140
Oppenheimer Developing Markets - Class A ........ 35,820 1,694,277
T. Rowe Price Emerging Europe & Mediterranean (a) 79,542 2,741,803
------------
8,689,220
------------
TOTAL INVESTMENT COMPANIES (Cost $92,521,820)....... $130,572,668
------------
================================================================================
MONEY MARKET SECURITIES -- 5.2% SHARES VALUE
- --------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional
Class, 2.522% (c)
(Cost $7,106,954) ............................. 7,106,954 $ 7,106,954
------------
TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $99,628,774) $137,679,622
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)..... (128,521)
------------
NET ASSETS -- 100.0%................................ $137,551,101
============
(a) Non-income producing security.
(b) Exchange-traded fund.
(c) Variable rate security. The coupon rate shown is the effective interest
rate at April 30, 2008.
See accompanying notes to financial statements.
14
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2008 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 92.1% SHARES VALUE
- --------------------------------------------------------------------------------
LONG/SHORT EQUITY FUNDS -- 17.1%
CGM Focus ....................................... 56,241 $ 3,064,006
Diamond Hill Focus Long-Short - Class I ......... 275,993 5,230,075
Hussman Strategic Growth ........................ 364,600 5,592,968
Prudent Bear .................................... 180,269 1,124,882
Schwab Hedged Equity Select ..................... 264,620 3,950,776
Templeton Global Long-Short - Class A ........... 194,307 2,557,074
TFS Market Neutral .............................. 102,943 1,512,226
Weitz Funds (The) - Partners III Opportunity .... 318,581 2,781,208
------------
25,813,215
------------
GLOBAL MACRO FUNDS -- 15.3%
BlackRock Global Allocation - Class A ........... 229,302 4,553,930
Dreyfus Premier Global Alpha - Class A .......... 39,285 496,566
First Eagle Global - Class A .................... 193,298 8,795,073
Franklin Mutual Discovery - Class Z ............. 128,625 3,993,806
Ivy Asset Strategy - Class A .................... 191,258 5,246,212
------------
23,085,587
------------
MERGER ARBITRAGE FUNDS -- 14.2%
Arbitrage - Class R (a) ......................... 346,720 4,396,414
Enterprise Mergers and Acquisitions - Class A .. 382,331 4,297,405
Gabelli ABC ..................................... 523,340 5,149,664
Gabelli Global Deal (c) ......................... 93,274 1,482,124
Merger .......................................... 413,691 6,101,938
------------
21,427,545
------------
ASSET ALLOCATION FUNDS -- 10.7%
Berwyn Income ................................... 170,167 2,023,291
FPA Crescent .................................... 145,649 3,765,027
Greenspring ..................................... 63,354 1,471,721
Leuthold Asset Allocation ....................... 224,862 2,554,430
Leuthold Core Investment ........................ 185,440 3,395,406
Oakmark Equity and Income - Class I ............. 105,490 2,909,410
------------
16,119,285
------------
NATURAL RESOURCES FUNDS -- 9.0%
BlackRock Real Asset Equity (c) ................. 85,000 1,475,600
DWS Global Commodities Stock (c) ................ 39,258 721,169
Permanent Portfolio ............................. 20,030 747,111
PIMCO Commodity Real Return Strategy - Class A.. 281,724 5,211,893
PowerShares Global Water Portfolio (b) .......... 73,000 1,504,530
RS Global Natural Resources - Class A ........... 38,551 1,548,203
T. Rowe Price New Era ........................... 9,337 605,898
Vanguard Precious Metals & Minerals ............. 50,852 1,829,640
------------
13,644,044
------------
See accompanying notes to financial statements.
15
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 92.1% (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------
HIGH YIELD/FIXED INCOME FUNDS -- 5.6%
Eaton Vance National Municipal - Class I ........ 154,581 $ 1,640,106
Fidelity Capital & Income ....................... 346,535 2,952,478
Oppenheimer International Bond - Class A ........ 241,347 1,600,128
Principal High Yield - Class A .................. 189,370 1,547,153
Western Asset Emerging Markets Debt (c) ......... 40,000 731,600
------------
8,471,465
------------
REAL ESTATE FUNDS -- 5.4%
Cohen & Steers International Realty - Class I ... 190,148 3,046,175
DJ Wilshire International Real Estate SPDR (b).. 13,500 748,845
JPMorgan U.S. Real Estate - Class A ............. 62,022 1,167,879
Third Avenue Real Estate Value .................. 119,711 3,260,916
------------
8,223,815
------------
DEEP VALUE/DISTRESSED SECURITIES FUNDS -- 5.4%
Fairholme ....................................... 121,295 3,927,548
Franklin Mutual Beacon - Class Z ................ 125,431 1,858,885
Third Avenue Value .............................. 40,588 2,287,936
------------
8,074,369
------------
OPTION HEDGED FUNDS -- 4.9%
Gateway ......................................... 238,519 6,816,871
Nuveen Equity Premium Income (c) ................ 40,000 633,200
------------
7,450,071
------------
CONVERTIBLE ARBITRAGE FUNDS -- 4.5%
Calamos Market Neutral - A Shares ............... 527,658 6,727,638
------------
TOTAL INVESTMENT COMPANIES (Cost $127,141,042)...... $139,037,034
------------
================================================================================
STRUCTURED NOTES -- 3.1% UNITS VALUE
- --------------------------------------------------------------------------------
Credit Suisse, Callable Yield Note, 14%,
due 04/30/2009 ................................ 1,500,000 $ 1,500,000
Deutsche Bank, Buffered Underlying Security
Linked Note, due 09/28/2009.................... 700,000 697,760
Merrill Lynch & Co., Inc., Medium-Term Note,
Series C, due 06/10/2008....................... 100,000(d) 1,237,000
Morgan Stanley & Co., Inc., Bear Market Plus
Note, due 07/20/2008 .......................... 50,000(d) 622,500
Morgan Stanley & Co., Inc., Bear Market
Plus Note, due 11/20/2008 ..................... 60,000(d) 687,600
------------
TOTAL STRUCTURED NOTES (Cost $4,300,000)............ $ 4,744,860
------------
See accompanying notes to financial statements.
16
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
MONEY MARKET SECURITIES -- 4.7% SHARES VALUE
- --------------------------------------------------------------------------------
The AIM STIT-STIC Portfolio - Institutional
Class, 2.522%(e)
(Cost $7,033,175).............................. 7,033,175 $ 7,033,175
------------
TOTAL INVESTMENTS AT VALUE -- 99.9% (Cost $138,474,217) $150,815,069
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.1%....... 164,109
------------
NET ASSETS -- 100.0%................................ $150,979,178
============
(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 April 30, 2008.
See accompanying notes to financial statements.
17
NEW CENTURY PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2008 (UNAUDITED)
============================================================================================================================
NEW CENTURY
NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ----------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities:
At acquisition cost ................... $100,153,637 $ 74,807,463 $ 14,070,749 $ 99,628,774 $138,474,217
============ ============ ============ ============ ============
At value (Note 1A) .................... $129,481,131 $ 86,954,160 $ 15,771,199 $137,679,622 $150,815,069
Dividends receivable ..................... 1,428 1,616 4,041 18,756 44,676
Receivable for capital shares sold ....... 10,867 1,625 -- 24,324 886,150
Other assets ............................. 10,611 7,681 1,174 10,659 10,241
------------ ------------ ------------ ------------ ------------
TOTAL ASSETS .......................... 129,504,037 86,965,082 15,776,414 137,733,361 151,756,136
------------ ------------ ------------ ------------ ------------
LIABILITIES
Payable to Advisor (Note 2) .............. 100,764 71,905 9,329 118,480 91,189
Payable to Distributor (Note 3) .......... 11,448 7,051 2,590 24,909 38,684
Payable for investment
securities purchased .................. -- -- -- -- 627,800
Payable for capital shares redeemed ...... 45,943 1,350 -- -- 4,010
Other accrued expenses and liabilities ... 14,367 12,602 6,116 38,871 15,275
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES ..................... 172,522 92,908 18,035 182,260 776,958
------------ ------------ ------------ ------------ ------------
NET ASSETS ................................. $129,331,515 $ 86,872,174 $ 15,758,379 $137,551,101 $150,979,178
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital .......................... $ 96,065,418 $ 72,809,717 $ 13,794,307 $ 94,859,949 $135,057,649
Accumulated undistributed net
investment income ..................... 1,461,472 14,406 119,989 421,141 14,640
Accumulated undistributed net realized
gains on investments .................. 2,477,131 1,901,354 143,633 4,219,163 3,566,037
Net unrealized appreciation on investments 29,327,494 12,146,697 1,700,450 38,050,848 12,340,852
------------ ------------ ------------ ------------ ------------
Net assets ................................. $129,331,515 $ 86,872,174 $ 15,758,379 $137,551,101 $150,979,178
============ ============ ============ ============ ============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) ............................ 7,301,857 6,118,223 1,504,104 8,035,792 11,676,150
============ ============ ============ ============ ============
Net asset value, offering price and
redemption price per share (a) ........... $ 17.71 $ 14.20 $ 10.48 $ 17.12 $ 12.93
============ ============ ============ ============ ============
(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.
18
NEW CENTURY PORTFOLIOS
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2008 (UNAUDITED)
================================================================================================================================
NEW CENTURY
NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends ................................ $ 1,175,887 $ 1,743,117 $ 76,449 $ 2,461,262 $ 2,169,612
Interest ................................. -- -- -- -- 583
------------ ------------ ------------ ------------ ------------
Total Income .......................... 1,175,887 1,743,117 76,449 2,461,262 2,170,195
------------ ------------ ------------ ------------ ------------
EXPENSES
Investment advisory fees (Note 2) ........ 606,908 436,271 73,122 619,329 479,956
Distribution costs (Note 3) .............. 102,929 74,379 16,087 131,973 37,866
Accounting fees .......................... 21,400 19,360 15,731 21,602 21,397
Administration fees (Note 2) ............. 17,299 12,736 4,696 17,624 17,264
Legal and audit fees ..................... 14,461 9,849 1,682 15,547 15,656
Transfer agent fees ...................... 10,500 10,500 10,500 10,500 10,500
Custody fees ............................. 12,010 7,454 2,149 11,668 12,530
Trustees' fees and expenses (Note 2) ..... 9,848 6,684 1,155 10,125 10,423
Insurance expense ........................ 5,334 3,610 511 4,894 4,601
Postage and supplies ..................... 3,699 2,003 1,229 2,669 2,866
Other expenses ........................... 1,224 4,898 2,373 5,699 58,152
------------ ------------ ------------ ------------ ------------
Total expenses ........................ 805,612 587,744 129,235 851,630 671,211
Less fees waived by the Advisor (Note 2) . -- -- (19,552) -- --
Plus previously waived investment
advisory fees and expense
reimbursements recouped
by the Advisor (Note 2) ............... -- -- -- 18,797 --
------------ ------------ ------------ ------------ ------------
Net expenses .......................... 805,612 587,744 109,683 870,427 671,211
------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME (LOSS) ............... 370,275 1,155,373 (33,234) 1,590,835 1,498,984
------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS/
(LOSSES) ON INVESTMENTS
Net realized gains/(losses) on investments (95,210) 424,675 (30,997) -- 363,313
Capital gain distributions from regulated
investment companies .................. 4,662,428 1,833,752 409,448 5,504,929 5,065,457
Net change in unrealized appreciation/
(depreciation) on investments ......... (18,969,815) (8,147,787) (1,496,933) (23,059,475) (9,484,948)
------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
LOSSES ON INVESTMENTS .................... (14,402,597) (5,889,360) (1,118,482) (17,554,546) (4,056,178)
------------ ------------ ------------ ------------ ------------
NET DECREASE IN NET
ASSETS FROM OPERATIONS ................... $(14,032,322) $ (4,733,987) $ (1,151,716) $(15,963,711) $ (2,557,194)
============ ============ ============ ============ ============
See accompanying notes to financial statements.
19
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
=============================================================================================================================
NEW CENTURY NEW CENTURY
CAPITAL PORTFOLIO BALANCED PORTFOLIO
-----------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, 2008 OCTOBER 31, APRIL 30, 2008 OCTOBER 31,
(UNAUDITED) 2007 (UNAUDITED) 2007
- -----------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) ................... $ 370,275 $ (429,610) $ 1,155,373 $ 1,101,913
Net realized gains/(losses) from
security transactions ....................... (95,210) 6,828,808 424,675 3,862,192
Capital gain distributions from regulated
investment companies ........................ 4,662,428 3,213,012 1,833,752 1,512,727
Net change in unrealized appreciation/
(depreciation) on investments ............... (18,969,815) 14,826,015 (8,147,787) 3,805,605
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets
from operations ................................ (14,032,322) 24,438,225 (4,733,987) 10,282,437
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) ........... -- -- (1,727,951) (1,085,845)
From net realized gains on security
transactions (Note 1E) ...................... (6,980,571) -- (4,963,213) --
-------------- -------------- -------------- --------------
Net decrease in net assets from
distributions to shareholders .................. (6,980,571) -- (6,691,164) (1,085,845)
-------------- -------------- -------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ...................... 2,931,807 5,930,937 1,059,832 2,918,012
Proceeds from redemption
fees collected (Note 1B) .................... 93 29 -- 56
Net asset value of shares issued in reinvestment
of distributions to shareholders ............ 6,680,167 -- 6,441,127 1,045,536
Payments for shares redeemed ................... (3,495,417) (10,029,342) (4,255,568) (3,907,332)
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets from
capital share transactions ..................... 6,116,650 (4,098,376) 3,245,391 56,272
-------------- -------------- -------------- --------------
TOTAL INCREASE/(DECREASE)
IN NET ASSETS .................................. (14,896,243) 20,339,849 (8,179,760) 9,252,864
NET ASSETS
Beginning of period ............................ 144,227,758 123,887,909 95,051,934 85,799,070
-------------- -------------- -------------- --------------
End of period .................................. $ 129,331,515 $ 144,227,758 $ 86,872,174 $ 95,051,934
============== ============== ============== ==============
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME .............................. $ 1,461,472 $ -- $ 14,406 $ 334,483
============== ============== ============== ==============
CAPITAL SHARE ACTIVITY
Sold ........................................... 163,149 313,592 72,816 189,069
Reinvested ..................................... 359,535 -- 444,216 70,406
Redeemed ....................................... (196,345) (527,053) (292,705) (253,201)
-------------- -------------- -------------- --------------
Net increase/(decrease) in shares outstanding .. 326,339 (213,461) 224,327 6,274
Shares outstanding, beginning of period. ....... 6,975,518 7,188,979 5,893,896 5,887,622
-------------- -------------- -------------- --------------
Shares outstanding, end of period .............. 7,301,857 6,975,518 6,118,223 5,893,896
============== ============== ============== ==============
See accompanying notes to financial statements.
20
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
=============================================================================================================================
NEW CENTURY NEW CENTURY
OPPORTUNISTIC PORTFOLIO INTERNATIONAL PORTFOLIO
-----------------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, 2008 OCTOBER 31, APRIL 30, 2008 OCTOBER 31,
(UNAUDITED) 2007 (UNAUDITED) 2007
- -----------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income/(loss) ................... $ (33,234) $ (64,268) $ 1,590,835 $ 134,961
Net realized gains/(losses) from
security transactions ....................... (30,997) 766,321 -- 2,068,729
Capital gain distributions from regulated
investment companies ........................ 409,448 38,924 5,504,929 2,227,454
Net change in unrealized appreciation/
(depreciation) on investments ............... (1,496,933) 2,126,149 (23,059,475) 35,884,958
-------------- -------------- -------------- --------------
Net increase/(decrease) in net assets
from operations ................................ (1,151,716) 2,867,126 (15,963,711) 40,316,102
-------------- -------------- -------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) ........... -- -- (1,842,261) (383,067)
From net realized gains on security
transactions (Note 1E) ...................... (529,288) -- (4,059,246) (4,023,814)
-------------- -------------- -------------- --------------
Net decrease in net assets from
distributions to shareholders .................. (529,288) -- (5,901,507) (4,406,881)
-------------- -------------- -------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ...................... 2,197,541 1,357,331 10,817,439 13,917,872
Proceeds from redemption
fees collected (Note 1B) .................... 29 -- 1,513 201
Net asset value of shares issued in reinvestment
of distributions to shareholders ............ 529,288 -- 4,112,509 3,515,727
Payments for shares redeemed ................... (222,638) (1,238,154) (2,931,543) (8,871,897)
-------------- -------------- -------------- --------------
Net increase in net assets from capital
share transactions ............................. 2,504,220 119,177 11,999,918 8,561,903
-------------- -------------- -------------- --------------
TOTAL INCREASE/(DECREASE)
IN NET ASSETS .................................. 823,216 2,986,303 (9,865,300) 44,471,124
NET ASSETS
Beginning of period ............................ 14,935,163 11,948,860 147,416,401 102,945,277
-------------- -------------- -------------- --------------
End of period .................................. $ 15,758,379 $ 14,935,163 $ 137,551,101 $ 147,416,401
============== ============== ============== ==============
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME .............................. $ 119,989 $ -- $ 421,141 $ --
============== ============== ============== ==============
CAPITAL SHARE ACTIVITY
Sold ........................................... 209,957 125,648 633,017 822,999
Reinvested ..................................... 48,470 -- 231,040 223,363
Redeemed ....................................... (22,308) (122,107) (175,411) (537,029)
-------------- -------------- -------------- --------------
Net increase in shares outstanding ............. 236,119 3,541 688,646 509,333
Shares outstanding, beginning of period. ....... 1,267,985 1,264,444 7,347,146 6,837,813
-------------- -------------- -------------- --------------
Shares outstanding, end of period .............. 1,504,104 1,267,985 8,035,792 7,347,146
============== ============== ============== ==============
See accompanying notes to financial statements.
21
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
===========================================================================================================
NEW CENTURY ALTERNATIVE
STRATEGIES PORTFOLIO
---------------------------------
SIX MONTHS YEAR
ENDED ENDED
APRIL 30, 2008 OCTOBER 31,
(UNAUDITED) 2007
- -----------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ............................................. $ 1,498,984 $ 1,200,031
Net realized gains from security transactions ..................... 363,313 744,343
Capital gain distributions from regulated investment companies .... 5,065,457 3,137,271
Net change in unrealized appreciation/(depreciation) on investments (9,484,948) 7,720,895
-------------- --------------
Net increase/(decrease) in net assets from operations ................ (2,557,194) 12,802,540
-------------- --------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) .............................. (3,290,139) (2,420,775)
From net realized gains on security transactions (Note 1E) ........ (2,850,232) (2,247,380)
-------------- --------------
Net decrease in net assets from distributions to shareholders ........ (6,140,371) (4,668,155)
-------------- --------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ......................................... 32,751,106 25,078,251
Proceeds from redemption fees collected (Note 1B) ................. 17,188 29
Net asset value of shares issued in reinvestment of
distributions to shareholders .................................. 6,072,156 4,619,812
Payments for shares redeemed ...................................... (7,280,649) (7,526,721)
-------------- --------------
Net increase in net assets from capital share transactions ........... 31,559,801 22,171,371
-------------- --------------
TOTAL INCREASE IN NET ASSETS ......................................... 22,862,236 30,305,756
NET ASSETS
Beginning of period ............................................... 128,116,942 97,811,186
-------------- --------------
End of period ..................................................... $ 150,979,178 $ 128,116,942
============== ==============
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME (LOSS) .......................................... $ 14,640 $ (45,582)
============== ==============
CAPITAL SHARE ACTIVITY
Sold .............................................................. 2,574,469 1,895,144
Reinvested ........................................................ 469,255 362,623
Redeemed .......................................................... (564,657) (568,214)
-------------- --------------
Net increase in shares outstanding ................................ 2,479,067 1,689,553
Shares outstanding, beginning of period ........................... 9,197,083 7,507,530
-------------- --------------
Shares outstanding, end of period ................................. 11,676,150 9,197,083
============== ==============
See accompanying notes to financial statements.
22
NEW CENTURY CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
================================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 2008 -----------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....... $ 20.68 $ 17.23 $ 15.04 $ 13.38 $ 12.36 $ 10.09
--------- --------- --------- --------- --------- ---------
Income/(loss) from investment operations:
Net investment income/(loss) ............ 0.05 (0.06) (0.08) (0.09) (0.12) (0.06)
Net realized and unrealized gains/
(losses) on investments ............... (2.02) 3.51 2.27 1.75 1.14 2.33
--------- --------- --------- --------- --------- ---------
Total from investment operations ........... (1.97) 3.45 2.19 1.66 1.02 2.27
--------- --------- --------- --------- --------- ---------
Less distributions:
Distributions from net
investment income ..................... -- -- -- -- -- --
Distributions from net realized gains .. (1.00) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions ........................ (1.00) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Proceeds from redemption fees collected .... 0.00(a) 0.00(a) -- -- -- --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ............. $ 17.71 $ 20.68 $ 17.23 $ 15.04 $ 13.38 $ 12.36
========= ========= ========= ========= ========= =========
TOTAL RETURN (b) ............................. (9.74%)(c) 20.02% 14.56% 12.41% 8.25% 22.50%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) .......... $ 129,332 $ 144,228 $ 123,888 $ 110,578 $ 103,260 $ 95,396
========= ========= ========= ========= ========= =========
Ratio of expenses to average net assets (d) 1.25%(f) 1.25% 1.27% 1.35% 1.41% 1.45%
Ratio of net investment income/(loss)
to average net assets (e) ............... 0.58%(f) (0.32%) (0.47%) (0.57%) (0.91%) (0.59%)
Portfolio turnover ......................... 2%(c) 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 periods covered, which assumes 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) Not annualized.
(d) The ratios of expenses to average net assets do not reflect the
Portfolio's proportionate share of expenses of the underlying investment
companies in which the Portfolio invests.
(e) 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.
(f) Annualized.
See accompanying notes to financial statements.
23
NEW CENTURY BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
================================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 2008 -----------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....... $ 16.13 $ 14.57 $ 13.15 $ 12.30 $ 11.52 $ 9.89
--------- --------- --------- --------- --------- ---------
Income/(loss) from investment operations:
Net investment income ................... 0.20 0.19 0.17 0.15 0.11 0.16
Net realized and unrealized gains/
(losses) on investments ............... (0.98) 1.56 1.44 0.89 0.78 1.67
--------- --------- --------- --------- --------- ---------
Total from investment operations ........... (0.78) 1.75 1.61 1.04 0.89 1.83
--------- --------- --------- --------- --------- ---------
Less distributions:
Distributions from net
investment income ..................... (0.30) (0.19) (0.19) (0.19) (0.11) (0.20)
Distributions from net realized gains .. (0.85) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions ........................ (1.15) (0.19) (0.19) (0.19) (0.11) (0.20)
--------- --------- --------- --------- --------- ---------
Proceeds from redemption fees collected .... -- 0.00(a) -- -- -- --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ............. $ 14.20 $ 16.13 $ 14.57 $ 13.15 $ 12.30 $ 11.52
========= ========= ========= ========= ========= =========
TOTAL RETURN (b) ............................. (4.97%)(c) 12.09% 12.37% 8.51% 7.75% 18.84%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) .......... $ 86,872 $ 95,052 $ 85,799 $ 77,128 $ 74,327 $ 70,441
========= ========= ========= ========= ========= =========
Ratio of expenses to average net assets (g) 1.35%(f) 1.35% 1.38% 1.38% 1.42%(e) 1.45%(d)
Ratio of net investment income
to average net assets (h) ............... 2.65%(f) 1.21% 1.20% 1.12% 0.88%(e) 1.56%(d)
Portfolio turnover ......................... 3%(c) 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 periods covered, which assumes 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) Not annualized.
(d) 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).
(e) 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).
(f) Annualized.
(g) 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.
(h) 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.
24
NEW CENTURY OPPORTUNISTIC PORTFOLIO
FINANCIAL HIGHLIGHTS
================================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 2008 -----------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....... $ 11.78 $ 9.45 $ 8.72 $ 7.30 $ 6.95 $ 5.47
--------- --------- --------- --------- --------- ---------
Income/(loss) from investment operations:
Net investment loss ..................... (0.02) (0.05) (0.08) (0.06) (0.07) (0.06)
Net realized and unrealized gains/
(losses) on investments ............... (0.89) 2.38 0.81 1.48 0.42 1.54
--------- --------- --------- --------- --------- ---------
Total from investment operations ........... (0.91) 2.33 0.73 1.42 0.35 1.48
--------- --------- --------- --------- --------- ---------
Less distributions:
Distributions from net
investment income ..................... -- -- -- -- -- --
Distributions from net realized gains ... (0.39) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total distributions ........................ (0.39) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Proceeds from redemption fees collected .... 0.00(a) -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ............. $ 10.48 $ 11.78 $ 9.45 $ 8.72 $ 7.30 $ 6.95
========= ========= ========= ========= ========= =========
TOTAL RETURN (b) ............................. (7.83%)(c) 24.66% 8.37% 19.45% 5.04% 27.06%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) .......... $ 15,758 $ 14,935 $ 11,949 $ 6,891 $ 5,512 $ 4,866
========= ========= ========= ========= ========= =========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees (d) ................... 1.77%(f) 1.88% 2.00% 2.56% 2.71% 3.20%
After expense reimbursement
and waived fees (d) ................... 1.50%(f) 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 (e) ................... (0.72%)(f) (0.88%) (1.39%) (1.80%) (2.27%) (2.73%)
After expense reimbursement
and waived fees (e) .................. (0.45%)(f) (0.50%) (0.89%) (0.74%) (1.06%) (1.03%)
Portfolio turnover ......................... 2%(c) 47% 49% 19% 68% 78%
(a) Amount rounds to less than $0.01 per share.
(b) Total return is a measure of the change in the value of an investment in
the Portfolio over the periods covered, which assumes 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) Not annualized.
(d) The ratios of expenses to average net assets do not reflect the
Portfolio's proportionate share of expenses of the underlying investment
companies in which the Portfolio invests.
(e) 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.
(f) Annualized.
See accompanying notes to financial statements.
25
NEW CENTURY INTERNATIONAL PORTFOLIO
FINANCIAL HIGHLIGHTS
================================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 2008 -----------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....... $ 20.06 $ 15.06 $ 12.12 $ 10.07 $ 8.68 $ 6.52
--------- --------- --------- --------- --------- ---------
Income/(loss) from investment operations:
Net investment income/(loss) ............ 0.22 0.03 (0.06) (0.06) (0.05) (0.03)
Net realized and unrealized gains/
(losses) on investments .............. (2.37) 5.61 3.12 2.42 1.44 2.19
--------- --------- --------- --------- --------- ---------
Total from investment operations ........... (2.15) 5.64 3.06 2.36 1.39 2.16
--------- --------- --------- --------- --------- ---------
Less distributions:
Distributions from net
investment income ..................... (0.25) (0.06) -- -- -- --
Distributions from net realized gains ... (0.54) (0.58) (0.12) (0.31) -- --
--------- --------- --------- --------- --------- ---------
Total distributions ........................ (0.79) (0.64) (0.12) (0.31) -- --
--------- --------- --------- --------- --------- ---------
Proceeds from redemption fees collected .... 0.00(a) 0.00(a) 0.00(a) 0.00(a) -- --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ............. $ 17.12 $ 20.06 $ 15.06 $ 12.12 $ 10.07 $ 8.68
========= ========= ========= ========= ========= =========
TOTAL RETURN (b) ............................ (10.87%)(c) 38.62% 25.35% 23.70% 16.01% 33.13%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) .......... $ 137,551 $ 147,416 $ 102,945 $ 45,014 $ 24,449 $ 15,288
========= ========= ========= ========= ========= =========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees (d) ................... 1.32%(f) 1.35% 1.50% 1.55% 1.74% 2.11%
After expense reimbursement
and waived fees (d) ................... 1.32%(f)(g) 1.35%(g) 1.50%(g) 1.50% 1.50% 1.50%
Ratios of net investment income/(loss)
to average net assets:
Before expense reimbursement
and waived fees (e) ................... 2.41%(f) 0.11% (0.46%) (0.72%) (0.88%) (1.16%)
After expense reimbursement
and waived fees (e) ................... 2.41%(f)(g) 0.11%(g) (0.46%)(g) (0.67%) (0.64%) (0.55%)
Portfolio turnover ......................... 0%(c) 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 periods covered, which assumes 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) Not annualized.
(d) The ratios of expenses to average net assets do not reflect the
Portfolio's proportionate share of expenses of the underlying investment
companies in which the Portfolio invests.
(e) 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.
(f) Annualized.
(g) Absent the recoupment of fees previously waived and reimbursed by the
Advisor, the ratios of expenses to average net assets would have been
1.29%(f), 1.32% and 1.41% and the ratios of net investment income/(loss)
to average net assets would have been 2.44%(f), 0.14% and (0.37%) for the
periods ended April 30, 2008, October 31, 2007 and 2006, respectively
(Note 2).
See accompanying notes to financial statements.
26
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
FINANCIAL HIGHLIGHTS
================================================================================================================================
SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEARS ENDED OCTOBER 31,
APRIL 30, 2008 -----------------------------------------------------------------
(UNAUDITED) 2007 2006 2005 2004 2003
- --------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ....... $ 13.93 $ 13.03 $ 11.99 $ 11.46 $ 10.67 $ 9.12
--------- --------- --------- --------- --------- ---------
Income/(loss) from investment operations:
Net investment income ................... 0.21 0.18 0.21 0.15 0.14 0.11
Net realized and unrealized gains/
(losses) on investments ............... (0.54) 1.34 1.23 0.87 0.83 1.54
--------- --------- --------- --------- --------- ---------
Total from investment operations ........... (0.33) 1.52 1.44 1.02 0.97 1.65
--------- --------- --------- --------- --------- ---------
Less distributions:
Distributions from net
investment income ..................... (0.36) (0.32) (0.33) (0.24) (0.18) (0.10)
Distributions from net realized gains .. (0.31) (0.30) (0.07) (0.25) -- --
--------- --------- --------- --------- --------- ---------
Total distributions ........................ (0.67) (0.62) (0.40) (0.49) (0.18) (0.10)
--------- --------- --------- --------- --------- ---------
Proceeds from redemption fees collected .... 0.00(a) 0.00(a) -- 0.00(a) -- --
--------- --------- --------- --------- --------- ---------
Net asset value, end of period ............. $ 12.93 $ 13.93 $ 13.03 $ 11.99 $ 11.46 $ 10.67
========= ========= ========= ========= ========= =========
TOTAL RETURN (b) ............................. (2.37%)(c) 12.09% 12.32% 9.12% 9.12% 18.20%
========= ========= ========= ========= ========= =========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) .......... $ 150,979 $ 128,117 $ 97,811 $ 76,560 $ 51,635 $ 33,734
========= ========= ========= ========= ========= =========
Ratios of expenses to average net assets (f) 1.05%(e) 1.06% 1.08% 1.06% 1.12% 1.40%(d)
Ratios of net investment income
to average net assets (g) ............... 2.34%(e) 1.07% 1.43% 1.06% 1.04% 1.06%(d)
Portfolio turnover ......................... 8%(c) 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 periods covered, which assumes 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) Not annualized.
(d) Absent the recoupment of fees previously waived and reimbursed by the
Advisor, the ratio of expenses to average net assets would have been 1.34%
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).
(e) Annualized.
(f) The ratios of expenses to average net assets do not reflect the
Portfolio's proportionate share of expenses of the underlying investment
companies in which the Portfolio invests.
(g) 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.
27
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2008 (UNAUDITED)
================================================================================
(1) SIGNIFICANT ACCOUNTING POLICIES
New Century Portfolios ("New Century") is organized as a Massachusetts business
trust which is registered under the Investment Company Act of 1940, as amended,
as an open-end management investment company and currently offers shares of five
series: New Century Capital Portfolio, New Century Balanced Portfolio, New
Century Opportunistic Portfolio, 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
28
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
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 in shares 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.
29
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
B. SHARE VALUATION
---------------
The net asset value per share of each Portfolio is calculated daily by dividing
the total value of each Portfolio's assets, less liabilities, by the number of
shares outstanding. The offering price and redemption price per share of each
Portfolio is equal to the net asset value per share, except that shares of each
Portfolio are subject to a redemption fee of 2% 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 periods ended April 30,
2008 and October 31, 2007, proceeds from redemption fees totaled $93 and $29,
respectively for New Century Capital Portfolio, $0 and $56, respectively for New
Century Balanced Portfolio, $29 and $0 respectively for New Century
Opportunistic Portfolio, $1,513 and $201, respectively for New Century
International Portfolio and $17,188 and $29, respectively, for New Century
Alternative Strategies 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 periods ended April 30, 2008 and October 31, 2007 was as
follows:
30
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
- -----------------------------------------------------------------------------------------
ORDINARY LONG-TERM TOTAL
PERIOD ENDED INCOME CAPITAL GAINS DISTRIBUTIONS
- -----------------------------------------------------------------------------------------
NEW CENTURY CAPITAL PORTFOLIO
April 30, 2008 .......................... $ -- $6,980,571 $6,980,571
October 31, 2007 ........................ $ -- $ -- $ --
NEW CENTURY BALANCED PORTFOLIO
April 30, 2008 .......................... $1,727,951 $4,963,213 $6,691,164
October 31, 2007 ........................ $1,085,845 $ -- $1,085,845
NEW CENTURY OPPORTUNISTIC PORTFOLIO
April 30, 2008 .......................... $ -- $ 529,288 $ 529,288
October 31, 2007 ........................ $ -- $ -- $ --
NEW CENTURY INTERNATIONAL PORTFOLIO
April 30, 2008 .......................... $1,842,261 $4,059,246 $5,901,507
October 31, 2007 ........................ $ 383,067 $4,023,814 $4,406,881
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
April 30, 2008 .......................... $3,290,139 $2,850,232 $6,140,371
October 31, 2007 ........................ $2,646,346 $2,021,809 $4,668,155
- -----------------------------------------------------------------------------------------
The differences between the book and tax basis of distributions for the periods
ended April 30, 2008 and October 31, 2007 are permanent in nature and are
primarily due to differing treatments of net short-term gains.
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.
31
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
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.
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 six months ended
April 30, 2008, the Advisor waived $19,552 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 six months ended April 30, 2008, the Advisor
received $18,797 in recouped fees from New Century International Portfolio.
During the six months ended April 30, 2008, 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 April 30, 2008, the amounts available for reimbursement that have been
paid and/or waived by the Advisor on behalf of the following Portfolio is as
follows:
- --------------------------------------------------------------------------------
New Century Opportunistic Portfolio ............................ $ 186,422
- --------------------------------------------------------------------------------
As of April 30, 2008, the Advisor may recapture a portion of the above amounts
no later than the dates as stated below:
- ------------------------------------------------------------------------------------------
OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31,
2008 2009 2010 2011
- ------------------------------------------------------------------------------------------
New Century Opportunistic Portfolio ... $62,153 $56,057 $48,660 $19,552
- ------------------------------------------------------------------------------------------
32
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
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 based on actual expenses incurred in the overseeing of the Portfolios'
affairs. All expenses incurred overseeing the Portfolios' affairs are reimbursed
monthly.
The Portfolios pay each Trustee who is not affiliated with the Advisor a $15,000
annual retainer, paid quarterly, and a per meeting fee of $2,500. The Portfolios
will also pay each Trustee who is not affiliated with the Advisor a $2,500
special meeting fee if held independent of a regularly scheduled board meeting.
Trustees who are affiliated with the Advisor do not receive compensation.
(3) DISTRIBUTION PLAN AND OTHER TRANSACTIONS
WITH AFFILIATES
The Portfolios have adopted a Distribution Plan (the "Plan") under Section 12(b)
of the Investment Company Act of 1940 and Rule 12b-1 thereunder. Under the Plan,
each Portfolio may pay up to .25% of its average daily net assets to the
Distributor for activities primarily intended to result in the sale of shares.
Under its terms, the Plan shall remain in effect from year to year, provided
such continuance is approved annually by a vote of a majority of the Trustees
and a majority of those Trustees who are not "interested persons" of the
Portfolios and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan.
During the six months ended April 30, 2008, the Distributor received $102,929,
$74,379, $16,087, $131,973 and $37,866 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.
During the six months ended April 30, 2008, the Distributor also received sales
commissions and other compensation of $46,257, $24,437, $1,807, $34,287 and
$122,133 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.
33
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
(4) INVESTMENT TRANSACTIONS
For the six months ended April 30, 2008, 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 .......... $ 7,926,824 $ 4,054,973 $ 1,922,087 $ 9,598,496 $37,671,300
Proceeds from sales of investment securities $ 3,097,849 $ 2,720,923 $ 269,003 $ -- $10,272,392
- -----------------------------------------------------------------------------------------------------------------------
(5) TAX MATTERS
It is each Portfolio's policy to comply with the special provisions of
Subchapter M of the Internal Revenue Code applicable to regulated investment
companies. As provided therein, in any fiscal year in which a Portfolio so
qualifies and distributes at least 90% of its taxable net income, the Portfolio
(but not the shareholders) will be relieved of federal income tax on the income
distributed. Accordingly, no provision for income taxes has been made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Portfolio's intention to declare as
dividends in each calendar year at least 98% of its net investment income
(earned during the calendar year) and 98% of its net realized capital gains
(earned during the twelve months ended October 31) plus undistributed amounts
from prior years.
The tax character of distributable earnings at April 30, 2008 was as follows:
- -------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------
Accumulated ordinary income $ 1,461,472 $ 14,406 $ 119,989 $ 421,141 $ 285,112
Unrealized appreciation .... 29,327,494 12,042,667 1,684,012 38,050,848 12,243,323
Other gains ................ 2,477,131 2,005,384 160,071 4,219,163 3,393,094
----------- ----------- ----------- ----------- -----------
Total distributable earnings $33,266,097 $14,062,457 $ 1,964,072 $42,691,152 $15,921,529
=========== =========== =========== =========== ===========
- -------------------------------------------------------------------------------------------------------
34
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
The following information is based upon the federal income tax cost of
investment securities as of April 30, 2008:
- --------------------------------------------------------------------------------------------------------------------------
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 $ 100,153,637 $ 74,911,493 $ 14,087,187 $ 99,628,774 $ 138,571,746
============= ============= ============= ============= =============
Gross unrealized appreciation ... $ 31,454,914 $ 13,345,265 $ 2,112,992 $ 40,597,360 $ 14,823,810
Gross unrealized depreciation ... (2,127,420) (1,302,598) (428,980) (2,546,512) (2,580,487)
------------- ------------- ------------- ------------- -------------
Net unrealized appreciation ..... $ 29,327,494 $ 12,042,667 $ 1,684,012 $ 38,050,848 $ 12,243,323
============= ============= ============= ============= =============
- --------------------------------------------------------------------------------------------------------------------------
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 certain
structured notes for tax purposes.
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. The Portfolios have adopted FIN
48 with this Semi-Annual report. Based on management's analysis, the adoption of
FIN 48 does not have a material impact on the financial statements. The statutes
of limitations on the Portfolios' tax returns remain open for the years ended
October 31, 2005 through October 31, 2007.
35
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2008 (UNAUDITED)
================================================================================
(6) CONTINGENCIES AND COMMITMENTS
New Century indemnifies its officers and Trustees for certain liabilities that
might arise from the 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 PRONOUNCEMENT
In September 2006, the FASB issued Statement of 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 April 30, 2008, 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.
36
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 mutual fund's ongoing costs 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 (November 1, 2007) and held for the entire period (April 30, 2008).
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 mutual 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 Portfolios' proportionate shares of expenses of
the underlying investment companies in which the Portfolios invest.
37
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
November 1, 2007 April 30, 2008 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $ 902.60 $5.91
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,018.65 $6.27
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Capital Portfolio's annualized
expense ratio of 1.25% for the period, multiplied by the average account
value over the period, multiplied by 182/366 (to reflect the one-half year
period).
NEW CENTURY BALANCED PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
November 1, 2007 April 30, 2008 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $ 950.30 $6.55
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,018.15 $6.77
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Balanced Portfolio's annualized
expense ratio of 1.35% for the period, multiplied by the average account
value over the period, multiplied by 182/366 (to reflect the one-half year
period).
NEW CENTURY OPPORTUNISTIC PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
November 1, 2007 April 30, 2008 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $ 921.70 $7.17
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,017.40 $7.52
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Opportunistic Portfolio's annualized
expense ratio of 1.50% for the period, multiplied by the average account
value over the period, multiplied by 182/366 (to reflect the one-half year
period).
38
NEW CENTURY PORTFOLIOS
ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED)
(CONTINUED)
================================================================================
NEW CENTURY INTERNATIONAL PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
November 1, 2007 April 30, 2008 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $ 891.30 $6.21
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,018.30 $6.62
- --------------------------------------------------------------------------------
* 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 182/366 (to reflect the one-half year
period).
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
November 1, 2007 April 30, 2008 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $ 976.30 $5.16
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,019.64 $5.27
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Alternative Strategies Portfolio's
annualized expense ratio of 1.05% for the period, multiplied by the
average account value over the period, multiplied by 182/366 (to reflect
the one-half year period).
39
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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 fees, expenses and other pertinent information.
A description of the policies and procedures that the Portfolios use to
determine how to vote proxies relating to portfolio securities is available
without charge upon request by calling toll-free 1-888-639-0102, or on the
Securities and Exchange Commission's ("SEC") website at http://www.sec.gov.
Information regarding how the Portfolios voted proxies relating to portfolio
securities during the most recent 12-month period ended June 30 is available
without charge upon request by calling toll-free 1-888-639-0102, or on the SEC's
website at http://www.sec.gov.
The Portfolios file a complete listing of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The Portfolios'
Forms N-Q are available without charge upon request by calling 1-888-639-0102,
or on the SEC's website at http://www.sec.gov. The Portfolios' Forms N-Q may be
reviewed and copied at the SEC's Public Reference Room in Washington, DC, or by
calling 1-800-SEC-0330.
================================================================================
ITEM 2. CODE OF ETHICS.
Not required
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not required
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not required
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable [schedule filed with Item 1]
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The registrant has a standing nominating committee responsible for the selection
and nomination to serve as trustees of the registrant. Although the nominating
committee expects to be able to find an adequate number of qualified candidates
to serve as trustees, the nominating committee is willing to consider
nominations received from shareholders. Shareholders wishing to submit a
nomination should do so by notifying the Secretary of the registrant, in
writing, at the following address: 40 William Street, Suite 100, Wellesley,
Massachusetts 02481-3902.
ITEM 11. CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) as of a date within 90 days of the filing date of this report, the
registrant's principal executive officer and principal financial officer have
concluded that such disclosure controls and procedures are reasonably designed
and are operating effectively to ensure that material information relating to
the registrant, including its consolidated subsidiaries, is made known to them
by others within those entities, particularly during the period in which this
report is being prepared, and that the information required in filings on Form
N-CSR is recorded, processed, summarized, and reported on a timely basis.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)
that occurred during the second fiscal quarter of the period covered by this
report that have materially affected, or are reasonably likely to materially
affect, the registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a)(1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not required
(a)(2) A separate certification for each principal executive officer and
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Act (17 CFR 270.30a-2(a)): Attached hereto
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 under
the Act (17 CFR 270.23c-1) sent or given during the period covered by the report
by or on behalf of the registrant to 10 or more persons: Not applicable
(b) Certifications required by Rule 30a-2(b) under the Act (17 CFR
270.30a-2(b)): Attached hereto
Exhibit 99.CERT Certifications required by Rule 30a-2(a) under the Act
Exhibit 99.906CERT Certifications required by Rule 30a-2(b) under the Act
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) New Century Portfolios
-------------------------------------------------------------------
By (Signature and Title)* /s/ Wayne M. Grzecki
----------------------------------------------------
Wayne M. Grzecki, President
Date June 26, 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 June 26, 2008
---------------------------
By (Signature and Title)* /s/ Nicole M. Tremblay
----------------------------------------------------
Nicole M. Tremblay, Treasurer
Date June 26, 2008
---------------------------
* Print the name and title of each signing officer under his or her signature.