-------------------------
OMB APPROVAL
-------------------------
OMB Number: 3235-0570
Expires: August 31, 2011
Estimated average burden
hours per response: 18.9
-------------------------
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, 2009
--------------------------
Date of reporting period: April 30, 2009
--------------------------
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, 2009
(Unaudited)
40 WILLIAM STREET, SUITE 100, WELLESLEY MA 02481
781-239-0445 888-639-0102 FAX 781-237-1635
================================================================================
CONTENTS
- --------------------------------------------------------------------------------
PRESIDENT'S LETTER TO SHAREHOLDERS 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 2009
================================================================================
Dear Fellow Shareholders:
I am pleased to present our Semi-Annual Report for the six-month period ended
April 30, 2009. This Report contains important financial information for each of
the New Century Portfolios. For additional information, I invite you to visit
our website at www.newcenturyportfolios.com.
During the six-month period ended April 30, 2009, the equity markets tested, and
eventually exceeded, the 2008 low that was set in late November. In early March
of this year, just when the declining markets were poised to crack the resolve
of the most-seasoned investor, the markets bottomed and reversed course. As of
April 30th, the markets, as signified by the S&P 500(R) Composite Index, rallied
approximately 29% from the March 9th low. Although we anticipate future
volatility, we believe that the government's stimulus programs and the Federal
Reserve's aggressive monetary policies are building a base for economic
recovery.
During the six-month period ended April 30, 2009, the New Century Capital
Portfolio reduced its cash position and increased its allocation to the
international and large-cap sectors. The Portfolio continued to increase
allocations to the consumer staples and biotech sectors. During the period, the
New Century Capital Portfolio declined 3.91% as compared to the S&P 500(R)
Composite Index which declined 8.53%.
The New Century Balanced Portfolio decreased its cash position and increased its
holdings in the government bond funds sector. During the period, the New Century
Balanced Portfolio gained 1.91%, as compared to the S&P 500(R) Composite Index
which declined 8.53% and the Barclays Capital Intermediate Government/Credit
Index which gained 6.73%.
The New Century Opportunistic Portfolio reduced its cash position and increased
exposure to the large-cap, biotech and consumer staples sectors. The Portfolio
also added a position in gold through the purchase of an ETF. During this
period, New Century Opportunistic Portfolio declined 3.39% as compared to the
Russell 3000 Growth Index which declined 1.68%.
The New Century International Portfolio maintained its allocations in each of
its geographic sectors with small increases to the European and the Latin
America sectors. During the period, foreign markets continued to outperform the
U.S. markets and the emerging foreign markets continued to outperform the
developed foreign markets. Our long-term view on Latin America, India, China and
the Pacific Rim is positive. During the period, the New Century International
Portfolio remained flat, declining 0.14%. The international equity markets, as
measured by the MSCI EAFE Index, declined 2.64%.
The New Century Alternative Strategies Portfolio increased its allocation to the
high yield/fixed income category to take advantage of historically high credit
spreads and decreased its allocation to the merger arbitrage category given
limited merger activity. The Portfolio maintained diversified positions in ten
distinct investment categories. New Century Alternative Strategies Portfolio
declined 0.29% during the period, as compared to the Barclays Capital
Intermediate Government/Credit Index, which gained 6.73% and the S&P 500(R)
Composite Index which declined 8.53%.
1
Although we are beginning to see the early signs of an economic recovery, we
remain cautious.
While future performance is always unpredictable, we are confident that New
Century's investment philosophy - diversification, risk assessment and long-term
focus - will maximize risk-adjusted returns.
New Century is committed to its shareholders and appreciates your selecting New
Century as part of your long-term investment strategy.
Sincerely,
/s/ Wayne M. Grzecki
Wayne M. Grzecki
President
INVESTORS SHOULD TAKE INTO CONSIDERATION THE INVESTMENT OBJECTIVES, RISKS,
CHARGES AND EXPENSES OF THE NEW CENTURY PORTFOLIOS CAREFULLY BEFORE INVESTING.
THE PROSPECTUS CONTAINS THESE DETAILS AND OTHER INFORMATION AND SHOULD BE READ
CAREFULLY BEFORE INVESTING. PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE AND
SHARES WHEN REDEEMED MAY BE WORTH MORE OR LESS THAN YOUR ORIGINAL INVESTMENT.
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. PORTFOLIO AND OPINIONS
EXPRESSED HEREIN ARE SUBJECT TO CHANGE.
2
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2009 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Large-Cap Funds - 40.0%
Sector Funds - 19.0%
International Funds - 13.9%
Mid-Cap Funds - 12.3%
Small-Cap Funds - 8.1%
Cash Equivalents - 6.7%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ---------------------------------------- ---------------
American Funds Growth Fund of America - Class A 8.7%
iShares Dow Jones U.S. Energy Sector Index 5.8%
iShares S&P MidCap 400 Value Index 5.1%
Marsico 21st Century 5.0%
iShares MSCI Emerging Markets Index 4.8%
Amana Trust Income 4.6%
Fidelity Capital Appreciation 4.4%
iShares S&P 500 Growth Index 4.0%
Vanguard 500 Index - Investor Shares 3.7%
Goldman Sachs Growth Opportunities - Class A 3.6%
3
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2009 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Government Bond Funds - 16.8%
Sector Funds - 16.1%
Large-Cap Funds - 12.0%
Worldwide Bond Funds - 9.5%
International Funds - 9.3%
Corporate Bond Funds - 8.1%
High Quality Bond Funds - 6.5%
Mid-Cap Funds - 5.1%
Small-Cap Funds - 4.2%
High Yield Bond Funds - 3.2%
Convertible Bond Funds - 2.4%
Cash Equivalents - 6.8%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ---------------------------------------- ---------------
Loomis Sayles Bond - Institutional Class 8.1%
Templeton Global Bond - Class A 7.5%
American Century Target Maturites Trust
Series 2015 - Investor Class 7.2%
First Eagle Global - Class A 6.6%
iShares S&P 500 Index 5.2%
Dodge & Cox Income 4.8%
S&P MidCap 400 Depositary Receipts 4.3%
American Funds AMCAP - Class A 3.9%
Fidelity Select Utilities Growth 3.5%
iShares Dow Jones U.S. Energy Sector Index 3.4%
4
NEW CENTURY OPPORTUNISTIC PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2009 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Sector Funds - 43.9%
Large-Cap Funds - 27.6%
Mid-Cap Funds - 9.4%
Small-Cap Funds - 7.2%
Cash Equivalents - 11.9%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ---------------------------------------- ---------------
iShares S&P 500 Growth Index 17.6%
S&P MidCap 400 Depositary Receipts 9.4%
Technology Select Sector SPDR 7.3%
iShares S&P 500 Value Index 6.8%
iShares S&P North American Natural Resources Index 6.3%
iShares MSCI Emerging Markets Index 6.1%
iShares S&P SmallCap 600 Growth Index 5.2%
PowerShares Dynamic Food & Beverage 4.4%
PowerShares Dynamic Pharmaceuticals 4.1%
iShares Dow Jones U.S. Energy Sector Index 3.5%
5
NEW CENTURY INTERNATIONAL PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2009 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Europe Funds - 25.9%
Americas Funds - 24.8%
Diversified Funds - 22.5%
Asia/Pacific Funds - 16.9%
Emerging Markets Funds - 5.0%
Cash Equivalents - 4.9%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ---------------------------------------- ---------------
iShares S&P Latin America 40 Index 6.6%
Fidelity Canada 6.3%
PowerShares DB U.S. Dollar Index Bullish 5.9%
iShares MSCI Germany Index 5.6%
iShares FTSE/Xinhua China 25 Index 5.1%
iShares MSCI United Kingdom Index 4.1%
iShares MSCI EAFE Index 4.1%
Vanguard European Stock ETF 3.8%
iShares S&P Global Energy Sector Index 3.7%
iShares MSCI Switzerland Index 3.4%
6
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
PORTFOLIO INFORMATION
APRIL 30, 2009 (UNAUDITED)
================================================================================
ASSET ALLOCATION (% of Net Assets)
- --------------------------------------------------------------------------------
[PIE CHART OMITTED]
Long/Short Equity Funds - 17.5%
Asset Allocation Funds - 13.7%
Global Macro Funds - 13.1%
Merger Arbitrage Funds - 12.1%
Natural Resources Funds - 8.6%
High Yield/Fixed Income Funds - 8.6%
Option Hedged Funds - 5.7%
Deep Value/Distressed Securities Funds - 5.5%
Real Estate Funds - 4.6%
Convertible Arbitrage Funds - 4.0%
Structured Notes - 4.4%
Cash Equivalents - 2.2%
TOP TEN LONG-TERM HOLDINGS
- --------------------------------------------------------------------------------
SECURITY DESCRIPTION % OF NET ASSETS
- ---------------------------------------- --------------
First Eagle Global - Class A 5.1%
Hussman Strategic Growth 4.7%
Merger 4.5%
Gateway - Class A 4.3%
Calamos Market Neutral Income - Class A 4.0%
Arbitrage - Class R 3.8%
FPA Crescent - Class I 3.6%
Leuthold Core Investment 3.4%
BlackRock Global Allocation - Class A 3.3%
Diamond Hill Long-Short - Class I 2.7%
7
NEW CENTURY CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 93.3% SHARES VALUE
- --------------------------------------------------------------------------------
LARGE-CAP FUNDS -- 40.0%
Amana Trust Income ................................ 144,671 $ 3,356,365
American Funds AMCAP - Class A (b) ................ 154,520 2,008,765
American Funds Growth Fund of America - Class A ... 298,067 6,429,307
Fidelity Capital Appreciation ..................... 202,540 3,260,895
iShares Russell 1000 Growth Index (a) ............. 235 9,080
iShares Russell 1000 Value Index (a) .............. 28,800 1,296,288
iShares S&P 500 Growth Index (a) .................. 64,900 2,944,513
iShares S&P 500 Index (a) ......................... 17,350 1,522,116
iShares S&P 500 Value Index (a) ................... 51,500 2,139,310
Marsico 21st Century .............................. 405,656 3,699,584
Vanguard 500 Index - Investor Shares .............. 34,231 2,754,256
------------
29,420,479
------------
SECTOR FUNDS -- 19.0%
Biotech HOLDRs Trust (a) .......................... 11,700 1,036,854
Consumer Staples Select Sector SPDR (a) ........... 74,200 1,632,400
Fidelity Select Utilities Growth .................. 71,234 2,573,671
iShares Dow Jones U.S. Energy Sector Index (a) .... 156,200 4,259,574
iShares Dow Jones U.S. Transportation
Average Index (a) .............................. 7,500 421,500
iShares S&P North American Natural Resources
Index (a) ...................................... 31,800 817,260
PowerShares Dynamic Biotechnology & Genome (a) (b) 58,600 755,354
PowerShares Dynamic Food & Beverage (a) ........... 77,200 985,844
PowerShares Dynamic Pharmaceuticals (a) ........... 59,300 828,421
SPDR Gold Trust (a) (b) ........................... 8,000 698,160
------------
14,009,038
------------
INTERNATIONAL FUNDS -- 13.9%
First Eagle Global - Class A ...................... 63,341 2,071,876
iShares MSCI EAFE Growth Index (a) ................ 34,600 1,442,128
iShares MSCI EAFE Index (a) ....................... 40,200 1,685,184
iShares MSCI EAFE Value Index (a) ................. 39,000 1,507,740
iShares MSCI Emerging Markets Index (a) ........... 124,200 3,558,330
------------
10,265,258
------------
MID-CAP FUNDS -- 12.3%
Goldman Sachs Growth Opportunities - Class A (b) .. 186,024 2,662,008
iShares S&P MidCap 400 Growth Index (a) ........... 18,000 1,079,640
iShares S&P MidCap 400 Value Index (a) ............ 73,000 3,721,540
Janus Orion ....................................... 117,617 843,315
S&P MidCap 400 Depositary Receipts (a) ............ 7,200 732,528
------------
9,039,031
------------
SMALL-CAP FUNDS -- 8.1%
Buffalo Small Cap (b) ............................. 58,258 1,068,460
iShares S&P SmallCap 600 Growth Index (a) ......... 54,600 2,418,780
iShares S&P SmallCap 600 Value Index (a) .......... 53,700 2,484,162
------------
5,971,402
------------
TOTAL INVESTMENT COMPANIES (Cost $72,390,394) ..... $ 68,705,208
------------
See accompanying notes to financial statements.
8
NEW CENTURY CAPITAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
================================================================================
MONEY MARKET FUNDS -- 6.8% SHARES VALUE
- --------------------------------------------------------------------------------
AIM STIT-STIC Prime Portfolio (The) -
Institutional Class, 0.30% (c) (Cost $5,009,029) 5,009,029 $ 5,009,029
------------
TOTAL INVESTMENTS AT VALUE -- 100.1%
(Cost $77,399,423) ............................. $ 73,714,237
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ... (56,555)
------------
NET ASSETS -- 100.0% .............................. $ 73,657,682
============
(a) Exchange-traded fund.
(b) Non-income producing security.
(c) Variable rate security. The rate shown is the 7-day effective yield as of
April 30, 2009.
See accompanying notes to financial statements.
9
NEW CENTURY BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 93.2% SHARES VALUE
- --------------------------------------------------------------------------------
GOVERNMENT BOND FUNDS -- 16.8%
American Century Target Maturities
Trust Series 2015 - Investor Class ............. 42,174 $ 4,039,003
iShares Barclays 3-7 Year Treasury Bond (a) ....... 5,000 565,150
iShares Barclays 7-10 Year Treasury Bond (a) ...... 6,700 627,589
iShares Barclays Aggregate Bond (a) ............... 10,000 1,016,400
ProShares UltraShort 20+ Year Treasury (a) ........ 28,000 1,380,680
Rydex Inverse Government Long Bond
Strategy - Investor Class (b) .................. 92,984 1,357,559
Vanguard Inflation-Protected
Securities - Investor Shares ................... 41,736 496,244
------------
9,482,625
------------
SECTOR FUNDS -- 16.1%
Biotech HOLDRs Trust (a) .......................... 7,600 673,512
Consumer Staples Select Sector SPDR (a) ........... 54,000 1,188,000
Fidelity Select Utilities Growth .................. 55,287 1,997,515
iShares Dow Jones U.S. Energy Sector Index (a) .... 69,400 1,892,538
iShares S&P North American Natural
Resources Index (a) ............................ 31,800 817,260
PowerShares Dynamic Biotechnology & Genome (a) (b) 36,900 475,641
PowerShares Dynamic Food & Beverage (a) ........... 78,000 996,060
PowerShares Dynamic Pharmaceuticals (a) ........... 40,100 560,197
SPDR Gold Trust (a) (b) ........................... 5,300 462,531
------------
9,063,254
------------
LARGE-CAP FUNDS -- 12.0%
American Funds AMCAP - Class A (b) ................ 169,502 2,203,520
iShares Russell 1000 Growth Index (a) ............. 19,600 757,344
iShares Russell 1000 Value Index (a) .............. 20,300 913,703
iShares S&P 500 Index (a) ......................... 33,400 2,930,182
------------
6,804,749
------------
WORLDWIDE BOND FUNDS -- 9.5%
Loomis Sayles Global Bond - Institutional Class ... 85,455 1,153,645
Templeton Global Bond - Class A ................... 362,607 4,217,122
------------
5,370,767
------------
INTERNATIONAL FUNDS -- 9.3%
First Eagle Global - Class A ...................... 114,262 3,737,496
iShares MSCI EAFE Index (a) ....................... 36,800 1,542,656
------------
5,280,152
------------
CORPORATE BOND FUNDS -- 8.1%
Loomis Sayles Bond - Institutional Class .......... 426,245 4,594,916
------------
HIGH QUALITY BOND FUNDS -- 6.5%
Calvert Social Investment - Class I ............... 70,661 999,149
Dodge & Cox Income ................................ 223,398 2,689,708
------------
3,688,857
------------
MID-CAP FUNDS -- 5.1%
iShares S&P MidCap 400 Value Index (a) ............ 9,000 458,820
S&P MidCap 400 Depositary Receipts (a) ............ 23,580 2,399,029
------------
2,857,849
------------
See accompanying notes to financial statements.
10
NEW CENTURY BALANCED PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
================================================================================
INVESTMENT COMPANIES -- 93.2% (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------
SMALL-CAP FUNDS -- 4.2%
iShares S&P SmallCap 600 Growth Index (a) ......... 30,800 $ 1,364,440
iShares S&P SmallCap 600 Value Index (a) .......... 21,300 985,338
------------
2,349,778
------------
HIGH YIELD BOND FUNDS -- 3.2%
Loomis Sayles Institutional High Income ........... 310,478 1,791,457
------------
CONVERTIBLE BOND FUNDS -- 2.4%
Davis Appreciation & Income - Class A ............. 74,646 1,332,439
------------
TOTAL INVESTMENT COMPANIES (Cost $57,453,207) ..... $ 52,616,843
------------
================================================================================
MONEY MARKET FUNDS -- 6.9% SHARES VALUE
- --------------------------------------------------------------------------------
AIM STIT-STIC Prime Portfolio (The) - Institutional
Class, 0.30% (c) (Cost $3,866,618) ............. 3,866,618 $ 3,866,618
------------
TOTAL INVESTMENTS AT VALUE -- 100.1%
(Cost $61,319,825) ............................. $ 56,483,461
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ... (47,377)
------------
NET ASSETS -- 100.0% .............................. $ 56,436,084
============
(a) Exchange-traded fund.
(b) Non-income producing security.
(c) Variable rate security. The rate shown is the 7-day effective yield as of
April 30, 2009.
See accompanying notes to financial statements.
11
NEW CENTURY OPPORTUNISTIC PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 88.1% SHARES VALUE
- --------------------------------------------------------------------------------
SECTOR FUNDS -- 43.9%
Biotech HOLDRs Trust (a) .......................... 3,200 $ 283,584
Consumer Staples Select Sector SPDR (a) ........... 12,300 270,600
iShares Dow Jones U.S. Energy Sector Index (a) .... 13,200 359,964
iShares MSCI Emerging Markets Index (a) ........... 21,600 618,840
iShares S&P North American
Natural Resources Index (a) .................... 24,900 639,930
PowerShares DB U.S. Dollar Index Bullish (a) (b) .. 10,000 253,400
PowerShares Dynamic Biotechnology & Genome (a) (b) 26,500 341,585
PowerShares Dynamic Food & Beverage (a) ........... 35,000 446,950
PowerShares Dynamic Pharmaceuticals (a) ........... 29,500 412,115
SPDR Gold Trust (a) (b) ........................... 1,000 87,270
Technology Select Sector SPDR (a) ................. 42,800 738,300
------------
4,452,538
------------
LARGE-CAP FUNDS -- 27.6%
iShares S&P 500 Growth Index (a) .................. 39,400 1,787,578
iShares S&P 500 Value Index (a) ................... 16,500 685,410
Vanguard Growth ETF (a) ........................... 8,000 328,640
------------
2,801,628
------------
MID-CAP FUNDS -- 9.4%
S&P MidCap 400 Depositary Receipts (a) ............ 9,402 956,560
------------
SMALL-CAP FUNDS -- 7.2%
iShares S&P SmallCap 600 Growth Index (a) ......... 12,000 531,600
iShares S&P SmallCap 600 Value Index (a) .......... 4,400 203,544
------------
735,144
------------
TOTAL INVESTMENT COMPANIES (Cost $10,238,399) ..... $ 8,945,870
------------
===============================================================================
MONEY MARKET FUNDS -- 11.9% SHARES VALUE
- -------------------------------------------------------------------------------
AIM STIT-STIC Prime Portfolio (The) - Institutional
Class, 0.30% (c) (Cost $1,212,986) ............. 1,212,986 $ 1,212,986
------------
TOTAL INVESTMENTS AT VALUE -- 100.0%
(Cost $11,451,385) ............................. $ 10,158,856
LIABILITIES IN EXCESS OF OTHER ASSETS -- 0.0% ..... (4,677)
------------
NET ASSETS -- 100.0% .............................. $ 10,154,179
============
(a) Exchange-traded fund.
(b) Non-income producing security.
(c) Variable rate security. The rate shown is the 7-day effective yield as of
April 30, 2009.
See accompanying notes to financial statements.
12
NEW CENTURY INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 95.1% SHARES VALUE
- --------------------------------------------------------------------------------
EUROPE FUNDS -- 25.9%
Franklin Mutual European - Class A ................ 106,710 $ 1,782,051
iShares MSCI France Index (a) ..................... 10,000 191,500
iShares MSCI Germany Index (a) .................... 227,200 3,928,288
iShares MSCI Spain Index (a) ...................... 37,200 1,291,584
iShares MSCI Sweden Index (a) ..................... 58,000 999,920
iShares MSCI Switzerland Index (a) ................ 147,300 2,389,206
iShares MSCI United Kingdom Index (a) ............. 244,146 2,863,832
Ivy European Opportunities - Class A .............. 115,423 1,925,254
Vanguard European Stock ETF (a) ................... 74,200 2,678,620
------------
18,050,255
------------
AMERICAS FUNDS -- 24.8%
Fidelity Canada ................................... 120,676 4,381,739
iShares MSCI Canada Index (a) ..................... 126,000 2,361,240
iShares MSCI Mexico Index (a) ..................... 59,800 1,868,152
iShares S&P Latin America 40 Index (a) ............ 154,600 4,610,172
PowerShares DB U.S. Dollar Index Bullish (a) (b) .. 161,300 4,087,342
------------
17,308,645
------------
DIVERSIFIED FUNDS -- 22.5%
iShares MSCI EAFE Growth Index (a) ................ 45,500 1,896,440
iShares MSCI EAFE Index (a) ....................... 67,800 2,842,176
iShares MSCI EAFE Value Index (a) ................. 51,000 1,971,660
iShares S&P Global Energy Sector Index (a) ........ 92,400 2,614,920
iShares S&P Global Infrastructure Index (a) ....... 36,600 947,940
iShares S&P Global Materials Index (a) ............ 26,700 1,126,473
Janus Overseas .................................... 77,329 2,295,133
MainStay International Equity - Class A ........... 204,290 1,985,700
------------
15,680,442
------------
ASIA/PACIFIC FUNDS -- 16.9%
Fidelity Japan .................................... 197,238 1,710,056
iShares FTSE/Xinhua China 25 Index (a) ............ 111,300 3,559,374
iShares MSCI Australia Index (a) .................. 138,100 2,028,689
iShares MSCI Japan Index (a) ...................... 143,800 1,223,738
iShares MSCI Pacific ex-Japan Index (a) ........... 64,800 1,799,496
Matthews Pacific Tiger - Class I .................. 119,303 1,498,451
------------
11,819,804
------------
EMERGING MARKET FUNDS -- 5.0%
iShares MSCI Emerging Markets Index (a) ........... 64,000 1,833,600
Vanguard Emerging Markets Stock Index (a) ......... 61,000 1,687,870
------------
3,521,470
------------
TOTAL INVESTMENT COMPANIES (Cost $71,454,653) ..... $ 66,380,616
------------
See accompanying notes to financial statements.
13
NEW CENTURY INTERNATIONAL PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
================================================================================
MONEY MARKET FUNDS -- 4.9% SHARES VALUE
- --------------------------------------------------------------------------------
AIM STIT-STIC Prime Portfolio (The) - Institutional
Class, 0.30% (c) (Cost $3,381,130) ............. 3,381,130 $ 3,381,130
------------
TOTAL INVESTMENTS AT VALUE -- 100.0%
(Cost $74,835,783) ............................. $ 69,761,746
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.0% ..... 30,929
------------
NET ASSETS -- 100.0% .............................. $ 69,792,675
============
(a) Exchange-traded fund.
(b) Non-income producing security.
(c) Variable rate security. The rate shown is the 7-day effective yield as of
April 30, 2009.
See accompanying notes to financial statements.
14
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
SCHEDULE OF INVESTMENTS
APRIL 30, 2009 (UNAUDITED)
================================================================================
INVESTMENT COMPANIES -- 93.4% SHARES VALUE
- --------------------------------------------------------------------------------
LONG/SHORT EQUITY FUNDS -- 17.5%
CGM Focus ......................................... 73,275 $ 1,815,745
Diamond Hill Long-Short - Class I ................. 259,063 3,525,848
Federated Prudent Bear - Class A (b) .............. 349,990 2,288,934
Hussman Strategic Growth .......................... 456,597 6,095,576
Nakoma Absolute Return (b) ........................ 89,969 1,892,038
Schwab Hedged Equity - Select Shares .............. 264,896 3,184,052
TFS Market Neutral (b) ............................ 142,038 1,933,141
Vanguard Market Neutral - Investor Shares ......... 178,471 1,774,003
------------
22,509,337
------------
ASSET ALLOCATION FUNDS -- 13.7%
Berwyn Income ..................................... 179,899 1,933,911
FPA Crescent - Class I ............................ 226,304 4,627,907
Greenspring ....................................... 158,202 3,255,797
Leuthold Core Investment .......................... 341,058 4,409,877
Oakmark Equity & Income - Class I ................. 160,696 3,454,960
------------
17,682,452
------------
GLOBAL MACRO FUNDS -- 13.1%
BlackRock Global Allocation - Class A ............. 288,928 4,270,361
First Eagle Global - Class A ...................... 200,869 6,570,409
Franklin Mutual Discovery - Class Z ............... 136,003 3,149,830
Ivy Asset Strategy - Class A ...................... 156,345 2,940,856
------------
16,931,456
------------
MERGER ARBITRAGE FUNDS -- 12.1%
Arbitrage - Class R (b) ........................... 399,426 4,908,949
Gabelli ABC ....................................... 292,889 2,759,016
Gabelli Global Deal (c) ........................... 165,774 2,113,618
Merger ............................................ 392,223 5,797,059
------------
15,578,642
------------
NATURAL RESOURCES FUNDS -- 8.6%
BlackRock Real Asset Equity (c) ................... 105,000 823,200
Goldman Sachs Commodity Strategy
- Institutional Shares ......................... 352,280 1,740,262
Permanent Portfolio ............................... 20,224 665,373
PIMCO Commodity Real Return Strategy - Class A .... 248,859 1,567,813
PowerShares Water Resources Portfolio (a) ......... 163,000 2,285,260
RS Global Natural Resources - Class A ............. 38,866 830,563
SPDR Gold Trust (a) (b) ........................... 18,000 1,570,860
T. Rowe Price New Era ............................. 9,618 304,218
Vanguard Precious Metals & Minerals
- Investor Shares .............................. 96,012 1,274,085
------------
11,061,634
------------
HIGH YIELD/FIXED INCOME FUNDS -- 8.6%
Eaton Vance National Municipal - Class I .......... 291,451 2,503,566
Loomis Sayles Institutional High Income ........... 569,260 3,284,630
Nuveen Multi-Strategy Income & Growth 2 (c) ....... 230,000 1,021,200
Oppenheimer International Bond - Class A .......... 257,154 1,473,493
Principal High Yield - Class A .................... 138,454 905,491
Western Asset Emerging Markets Debt (c) ........... 143,600 1,863,928
------------
11,052,308
------------
See accompanying notes to financial statements.
15
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
================================================================================
INVESTMENT COMPANIES -- 93.4% (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------
OPTION HEDGED FUNDS -- 5.7%
Eaton Vance Tax-Managed Diversified Equity Income (c) 80,000 $ 855,200
Gateway - Class A ................................. 236,631 5,522,956
Nuveen Equity Premium Income (c) .................. 88,000 903,760
------------
7,281,916
------------
DEEP VALUE/DISTRESSED SECURITIES FUNDS -- 5.5%
Fairholme ......................................... 152,724 3,495,852
Franklin Mutual Beacon - Class Z .................. 170,558 1,581,076
Third Avenue Value ................................ 57,821 2,016,225
------------
7,093,153
------------
REAL ESTATE FUNDS -- 4.6%
Cohen & Steers International Realty - Class I ..... 74,665 594,333
ING Global Real Estate - Class I .................. 150,822 1,606,252
JPMorgan U.S. Real Estate - Class A ............... 173,084 1,471,210
Third Avenue Real Estate Value .................... 154,939 2,311,697
------------
5,983,492
------------
CONVERTIBLE ARBITRAGE FUNDS -- 4.0%
Calamos Market Neutral Income - Class A ........... 489,372 5,109,039
------------
TOTAL INVESTMENT COMPANIES (Cost $139,482,686) .... $120,283,429
------------
================================================================================
STRUCTURED NOTES -- 4.4% PAR VALUE VALUE
- --------------------------------------------------------------------------------
Credit Suisse, Buffered Accelerated Return Equity
Security Linked Note, due 03/29/2010 ........... $1,500,000 $ 1,598,850
Credit Suisse, Buffered Accelerated Return Equity
Security Linked Note, due 05/05/2011 ........... 1,250,000 1,250,000
Credit Suisse, Callable Yield Note, 17%,
due 02/26/2010 ................................. 1,200,000 1,218,960
Deutsche Bank, Buffered Barrier Rebate Securities
Linked Note, due 06/30/2010 .................... 1,200,000 1,217,880
Deutsche Bank, Buffered Underlying Security
Linked Note, due 09/28/2009 .................... 700,000 379,120
------------
TOTAL STRUCTURED NOTES (Cost $5,850,000) .......... $ 5,664,810
------------
See accompanying notes to financial statements.
16
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
SCHEDULE OF INVESTMENTS (CONTINUED)
================================================================================
MONEY MARKET FUNDS -- 3.2% SHARES VALUE
- --------------------------------------------------------------------------------
AIM STIT-STIC Prime Portfolio (The) - Institutional
Class, 0.30% (d) (Cost $4,127,950) ............. 4,127,950 $ 4,127,950
------------
TOTAL INVESTMENTS AT VALUE -- 101.0%
(Cost $149,460,636) ............................ $130,076,189
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.0%) ... (1,343,816)
------------
NET ASSETS -- 100.0% .............................. $128,732,373
============
(a) Exchange-traded fund.
(b) Non-income producing security.
(c) Closed-end fund.
(d) Variable rate security. The rate shown is the 7-day effective yield as of
April 30, 2009.
See accompanying notes to financial statements.
17
NEW CENTURY PORTFOLIOS
STATEMENTS OF ASSETS AND LIABILITIES
APRIL 30, 2009 (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 ........................ $ 77,399,423 $ 61,319,825 $ 11,451,385 $ 74,835,783 $149,460,636
============ ============ ============ ============ ============
At value (Note 1A) ......................... $ 73,714,237 $ 56,483,461 $ 10,158,856 $ 69,761,746 $130,076,189
Dividends and interest receivable ............. 1,242 582 299 1,159 62,953
Receivable for capital shares sold ............ 8,992 1,975 1,044 85,075 48,406
Other assets .................................. 9,710 8,127 2,630 9,176 16,577
------------ ------------ ------------ ------------ ------------
TOTAL ASSETS ............................... 73,734,181 56,494,145 10,162,829 69,857,156 130,204,125
------------ ------------ ------------ ------------ ------------
LIABILITIES
Payable to Advisor (Note 2) ................... 60,778 46,787 2,075 58,174 80,760
Payable to Distributor (Note 3) ............... 12,302 10,200 762 4,529 6,627
Payable for investment
securities purchased ....................... -- -- -- -- 1,274,641
Payable for capital shares redeemed ........... -- -- -- -- 109,724
Other accrued expenses and liabilities ........ 3,419 1,074 5,813 1,778 --
------------ ------------ ------------ ------------ ------------
TOTAL LIABILITIES .......................... 76,499 58,061 8,650 64,481 1,471,752
------------ ------------ ------------ ------------ ------------
NET ASSETS ....................................... $ 73,657,682 $ 56,436,084 $ 10,154,179 $ 69,792,675 $128,732,373
============ ============ ============ ============ ============
Net assets consist of:
Paid-in capital ............................... $ 87,702,811 $ 65,144,874 $ 13,793,058 $ 84,017,992 $156,352,692
Accumulated undistributed net
investment income .......................... 306,928 80,194 22,643 286,892 344,875
Accumulated net realized
losses on investments ...................... (10,666,871) (3,952,620) (2,368,993) (9,438,172) (8,580,747)
Net unrealized depreciation
on investments ............................. (3,685,186) (4,836,364) (1,292,529) (5,074,037) (19,384,447)
------------ ------------ ------------ ------------ ------------
Net assets ....................................... $ 73,657,682 $ 56,436,084 $ 10,154,179 $ 69,792,675 $128,732,373
============ ============ ============ ============ ============
Shares of beneficial interest outstanding
(unlimited number of shares authorized,
no par value) ................................. 6,535,908 5,362,516 1,484,569 7,011,861 13,149,214
============ ============ ============ ============ ============
Net asset value, offering price and
redemption price per share (a) ................ $ 11.27 $ 10.52 $ 6.84 $ 9.95 $ 9.79
============ ============ ============ ============ ============
(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, 2009 (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 ..................................... $ 826,376 $ 1,411,570 $ 94,304 $ 1,299,570 $ 2,108,930
Interest ...................................... -- -- -- -- 140,545
------------ ------------ ------------ ------------ ------------
Total income ............................... 826,376 1,411,570 94,304 1,299,570 2,249,475
------------ ------------ ------------ ------------ ------------
EXPENSES
Investment advisory fees (Note 2) ............. 361,390 281,325 47,991 336,174 472,630
Distribution costs (Note 3) ................... 65,050 56,265 11,038 67,235 68,750
Accounting fees ............................... 18,643 17,904 15,490 18,368 21,252
Administration fees (Note 2) .................. 14,860 12,317 4,655 14,190 23,599
Legal and audit fees .......................... 14,322 11,844 4,746 13,586 22,681
Transfer agent fees ........................... 10,500 10,500 10,500 10,500 10,402
Trustees' fees and expenses (Note 2) .......... 9,940 7,773 1,370 9,259 17,653
Custody fees .................................. 6,294 5,364 1,576 5,552 9,495
Insurance expense ............................. 4,520 3,058 578 4,664 5,931
Other expenses ................................ 2,541 479 4,680 -- --
------------ ------------ ------------ ------------ ------------
Total expenses ............................. 508,060 406,829 102,624 479,528 652,393
Less fees waived by the Advisor (Note 2) ...... -- -- (30,638) -- --
------------ ------------ ------------ ------------ ------------
Net expenses ............................... 508,060 406,829 71,986 479,528 652,393
------------ ------------ ------------ ------------ ------------
NET INVESTMENT INCOME ............................ 318,316 1,004,741 22,318 820,042 1,597,082
------------ ------------ ------------ ------------ ------------
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Net realized gains (losses) on investments .... (954,444) (149,861) 20,243 (2,150,850) (9,071,387)
Capital gain distributions from regulated
investment companies ....................... 456,941 434,303 -- 631,323 3,562,813
Net change in unrealized appreciation
(depreciation) on investments .............. (3,983,188) (697,885) (421,676) 47,018 2,438,862
------------ ------------ ------------ ------------ ------------
NET REALIZED AND UNREALIZED
LOSSES ON INVESTMENTS ......................... (4,480,691) (413,443) (401,433) (1,472,509) (3,069,712)
------------ ------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS ........................ $ (4,162,375) $ 591,298 $ (379,115) $ (652,467) $ (1,472,630)
============ ============ ============ ============ ============
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, 2009 OCTOBER 31, APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008 (UNAUDITED) 2008
- ------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ......................... $ 318,316 $ 99,564 $ 1,004,741 $ 1,423,100
Net realized losses from security transactions (954,444) (13,968,157) (149,861) (5,827,215)
Capital gain distributions from regulated
investment companies ....................... 456,941 4,895,351 434,303 1,970,480
Net change in unrealized appreciation
(depreciation) on investments .............. (3,983,188) (47,999,307) (697,885) (24,432,963)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from operations ............................... (4,162,375) (56,972,549) 591,298 (26,866,598)
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) .......... (208,624) (998,890) (1,229,934) (1,727,951)
From net realized gains on security
transactions (Note 1E) ..................... -- (5,981,681) -- (4,963,213)
------------ ------------ ------------ ------------
Decrease in net assets from
distributions to shareholders ................. (208,624) (6,980,571) (1,229,934) (6,691,164)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ..................... 2,549,870 5,466,809 847,145 1,980,783
Proceeds from redemption
fees collected (Note 1B) ................... 256 93 -- 43
Net asset value of shares issued
in reinvestment of distributions
to shareholders ............................ 197,220 6,680,167 1,183,887 6,441,127
Payments for shares redeemed. ................. (8,837,224) (8,303,148) (7,379,753) (7,492,684)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets from
capital share transactions .................... (6,089,878) 3,843,921 (5,348,721) 929,269
------------ ------------ ------------ ------------
TOTAL DECREASE IN NET ASSETS ..................... (10,460,877) (60,109,199) (5,987,357) (32,628,493)
NET ASSETS
Beginning of period ........................... 84,118,559 144,227,758 62,423,441 95,051,934
------------ ------------ ------------ ------------
End of period ................................. $ 73,657,682 $ 84,118,559 $ 56,436,084 $ 62,423,441
============ ============ ============ ============
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME ............................. $ 306,928 $ 191,871 $ 80,194 $ 281,588
============ ============ ============ ============
CAPITAL SHARE ACTIVITY
Sold .......................................... 241,892 345,411 82,143 144,570
Reinvested .................................... 17,453 359,535 112,859 444,216
Redeemed ...................................... (878,232) (525,669) (754,152) (561,016)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding . (618,887) 179,277 (559,150) 27,770
Shares outstanding, beginning of period ....... 7,154,795 6,975,518 5,921,666 5,893,896
------------ ------------ ------------ ------------
Shares outstanding, end of period ............. 6,535,908 7,154,795 5,362,516 5,921,666
============ ============ ============ ============
See accompanying notes to financial statements.
20
NEW CENTURY PORTFOLIOS
STATEMENTS OF CHANGES IN NET ASSETS
==================================================================================================================
NEW CENTURY NEW CENTURY
OPPORTUNISITIC PORTFOLIO INTERNATIONAL PORTFOLIO
--------------------------------------------------------------
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
APRIL 30, 2009 OCTOBER 31, APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008 (UNAUDITED) 2008
- ------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss). ................. $ 22,318 $ (87,741) $ 820,042 $ 2,065,042
Net realized gains (losses) from
security transactions ...................... 20,243 (2,629,023) (2,150,850) (12,761,412)
Capital gain distributions from regulated
investment companies ....................... -- 409,448 631,323 5,535,179
Net change in unrealized appreciation
(depreciation) on investments .............. (421,676) (4,068,236) 47,018 (66,231,378)
------------ ------------ ------------ ------------
Net decrease in net assets from operations ....... (379,115) (6,375,552) (652,467) (71,392,569)
------------ ------------ ------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) .......... -- (65,157) (835,144) (2,455,459)
From net realized gains on security
transactions (Note 1E) ..................... -- (464,131) -- (3,446,048)
------------ ------------ ------------ ------------
Decrease in net assets from
distributions to shareholders ................. -- (529,288) (835,144) (5,901,507)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ..................... 1,022,007 2,921,340 2,845,143 15,672,710
Proceeds from redemption
fees collected (Note 1B) ................... 274 29 1,366 1,655
Net asset value of shares issued
in reinvestment of distributions
to shareholders ............................ -- 529,288 568,685 4,112,509
Payments for shares redeemed .................. (1,075,560) (894,407) (8,369,256) (13,674,851)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
from capital share transactions ............... (53,279) 2,556,250 (4,954,062) 6,112,023
------------ ------------ ------------ ------------
TOTAL DECREASE IN NET ASSETS ..................... (432,394) (4,348,590) (6,441,673) (71,182,053)
NET ASSETS
Beginning of period ........................... 10,586,573 14,935,163 76,234,348 147,416,401
------------ ------------ ------------ ------------
End of period ................................. $ 10,154,179 $ 10,586,573 $ 69,792,675 $ 76,234,348
============ ============ ============ ============
ACCUMULATED UNDISTRIBUTED NET
INVESTMENT INCOME ............................. $ 22,643 $ 325 $ 286,892 $ 289,020
============ ============ ============ ============
CAPITAL SHARE ACTIVITY
Sold .......................................... 155,060 281,392 310,252 968,648
Reinvested .................................... -- 48,470 57,385 231,040
Redeemed ...................................... (166,140) (102,198) (917,039) (985,571)
------------ ------------ ------------ ------------
Net increase (decrease) in shares outstanding . (11,080) 227,664 (549,402) 214,117
Shares outstanding, beginning of period ....... 1,495,649 1,267,985 7,561,263 7,347,146
------------ ------------ ------------ ------------
Shares outstanding, end of period ............. 1,484,569 1,495,649 7,011,861 7,561,263
============ ============ ============ ============
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, 2009 OCTOBER 31,
(UNAUDITED) 2008
- --------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income ........................ $ 1,597,082 $ 2,087,513
Net realized losses from security transactions (9,071,387) (4,079,115)
Capital gain distributions from
regulated investment companies ............ 3,562,813 5,212,537
Net change in unrealized appreciation
(depreciation) on investments ............. 2,438,862 (43,649,109)
------------ ------------
Net decrease in net assets from operations ...... (1,472,630) (40,428,174)
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income (Note 1E) ......... (4,198,238) (3,290,139)
From net realized gains on security
transactions (Note 1E) .................... -- (2,850,232)
------------ ------------
Decrease in net assets from distributions
to shareholders .............................. (4,198,238) (6,140,371)
------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................... 21,864,636 66,371,741
Proceeds from redemption fees
collected (Note 1B) ....................... 5,262 20,136
Net asset value of shares issued in
reinvestment of distributions
to shareholders ........................... 4,137,046 6,072,156
Payments for shares redeemed ................. (28,602,279) (17,013,854)
------------ ------------
Net increase (decrease) in net assets
from capital share transactions .............. (2,595,335) 55,450,179
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS ......... (8,266,203) 8,881,634
NET ASSETS
Beginning of period .......................... 136,998,576 128,116,942
------------ ------------
End of period ................................ $128,732,373 $136,998,576
============ ============
ACCUMULATED UNDISTRIBUTED
NET INVESTMENT INCOME ........................ $ 344,875 $ 1,308,842
============ ============
CAPITAL SHARE ACTIVITY
Sold ......................................... 2,298,056 5,294,506
Reinvested ................................... 427,823 469,255
Redeemed ..................................... (3,086,896) (1,450,613)
------------ ------------
Net increase (decrease) in shares outstanding (361,017) 4,313,148
Shares outstanding, beginning of period ...... 13,510,231 9,197,083
------------ ------------
Shares outstanding, end of period ............ 13,149,214 13,510,231
============ ============
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, 2009 ------------------------------------------------------------------
(UNAUDITED) 2008 2007 2006 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ...... $ 11.76 $ 20.68 $ 17.23 $ 15.04 $ 13.38 $ 12.36
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income (loss) ........... 0.05 0.02 (0.06) (0.08) (0.09) (0.12)
Net realized and unrealized gains
(losses) on investments ............. (0.51) (7.94) 3.51 2.27 1.75 1.14
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations .......... (0.46) (7.92) 3.45 2.19 1.66 1.02
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Distributions from net
investment income ................... (0.03) (0.14) -- -- -- --
Distributions from net realized gains .. -- (0.86) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions ....................... (0.03) (1.00) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Proceeds from redemption fees collected ... 0.00(a) 0.00(a) 0.00(a) -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............ $ 11.27 $ 11.76 $ 20.68 $ 17.23 $ 15.04 $ 13.38
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) ............................. (3.91%)(c) (40.06%) 20.02% 14.56% 12.41% 8.25%
========== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ......... $ 73,658 $ 84,119 $ 144,228 $ 123,888 $ 110,578 $ 103,260
========== ========== ========== ========== ========== ==========
Ratio of expenses to average net assets (d) 1.41%(f) 1.29% 1.25% 1.27% 1.35% 1.41%
Ratio of net investment income (loss)
to average net assets (e) .............. 0.88%(f) 0.08% (0.32%) (0.47%) (0.57%) (0.91%)
Portfolio turnover ........................ 4%(c) 27% 21% 12% 13% 48%
(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 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, 2009 ------------------------------------------------------------------
(UNAUDITED) 2008 2007 2006 2005 2004
- ---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ...... $ 10.54 $ 16.13 $ 14.57 $ 13.15 $ 12.30 $ 11.52
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income .................. 0.18 0.25 0.19 0.17 0.15 0.11
Net realized and unrealized gains
(losses) on investments ............. 0.02 (4.69) 1.56 1.44 0.89 0.78
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations .......... 0.20 (4.44) 1.75 1.61 1.04 0.89
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Distributions from net
investment income ................... (0.22) (0.30) (0.19) (0.19) (0.19) (0.11)
Distributions from net realized gains .. -- (0.85) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions ....................... (0.22) (1.15) (0.19) (0.19) (0.19) (0.11)
---------- ---------- ---------- ---------- ---------- ----------
Proceeds from redemption fees collected ... -- 0.00(a) 0.00(a) -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............ $ 10.52 $ 10.54 $ 16.13 $ 14.57 $ 13.15 $ 12.30
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) ............................. 1.91%(c) (29.46%) 12.09% 12.37% 8.51% 7.75%
========== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ......... $ 56,436 $ 62,423 $ 95,052 $ 85,799 $ 77,128 $ 74,327
========== ========== ========== ========== ========== ==========
Ratio of expenses to average net assets(f) . 1.45%(e) 1.38% 1.35% 1.38% 1.38% 1.42%(d)
Ratio of net investment income
to average net assets (g) .............. 3.57%(e) 1.71% 1.21% 1.20% 1.12% 0.88%(d)
Portfolio turnover ........................ 10%(c) 22% 28% 22% 21% 44%
(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 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 1.41%
and the ratio of net investment income to average net assets would have
been 0.89% for the year ended October 31, 2004 (Note 2).
(e) Annualized.
(f) The ratios of expenses to average net assets do not reflect the
Portfolio's proportionate share of expenses of the underlying investment
companies in which the Portfolio invests.
(g) 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, 2009 ------------------------------------------------------------------
(UNAUDITED) 2008 2007 2006 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ...... $ 7.08 $ 11.78 $ 9.45 $ 8.72 $ 7.30 $ 6.95
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income (loss) ........... 0.02 (0.05) (0.05) (0.08) (0.06) (0.07)
Net realized and unrealized gains
(losses) on investments ............. (0.26) (4.26) 2.38 0.81 1.48 0.42
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations .......... (0.24) (4.31) 2.33 0.73 1.42 0.35
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Distributions from net
investment income ................... -- (0.05) -- -- -- --
Distributions from net realized gains .. -- (0.34) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions ....................... -- (0.39) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Proceeds from redemption fees collected ... 0.00(a) 0.00(a) -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............ $ 6.84 $ 7.08 $ 11.78 $ 9.45 $ 8.72 $ 7.30
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) ............................. (3.39%)(c) (37.74%) 24.66% 8.37% 19.45% 5.04%
========== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ......... $ 10,154 $ 10,587 $ 14,935 $ 11,949 $ 6,891 $ 5,512
========== ========== ========== ========== ========== ==========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees (d) ................. 2.14%(f) 1.79% 1.88% 2.00% 2.56% 2.71%
After expense reimbursement
and waived fees (d) ................. 1.50%(f) 1.50% 1.50% 1.50% 1.50% 1.50%
Ratios of net investment income (loss)
to average net assets:
Before expense reimbursement
and waived fees (e) ................. (0.17%)(f) (0.89%) (0.88%) (1.39%) (1.80%) (2.27%)
After expense reimbursement
and waived fees (e) ................. 0.47%(f) (0.60%) (0.50%) (0.89%) (0.74%) (1.06%)
Portfolio turnover ........................ 6%(c) 56% 47% 49% 19% 68%
(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 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.
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, 2009 ------------------------------------------------------------------
(UNAUDITED) 2008 2007 2006 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ...... $ 10.08 $ 20.06 $ 15.06 $ 12.12 $ 10.07 $ 8.68
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income (loss) ........... 0.12 0.28 0.03 (0.06) (0.06) (0.05)
Net realized and unrealized gains
(losses) on investments ............. (0.13) (9.47) 5.61 3.12 2.42 1.44
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations .......... (0.01) (9.19) 5.64 3.06 2.36 1.39
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Distributions from net
investment income ................... (0.12) (0.33) (0.06) -- -- --
Distributions from net realized gains .. -- (0.46) (0.58) (0.12) (0.31) --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions ....................... (0.12) (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) 0.00(a) --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............ $ 9.95 $ 10.08 $ 20.06 $ 15.06 $ 12.12 $ 10.07
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) ............................. (0.14%)(c) (47.52%) 38.62% 25.35% 23.70% 16.01%
========== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ......... $ 69,793 $ 76,234 $ 147,416 $ 102,945 $ 45,014 $ 24,449
========== ========== ========== ========== ========== ==========
Ratios of expenses to average net assets:
Before expense reimbursement
and waived fees (d) ................. 1.43%(f) 1.29% 1.35% 1.50% 1.55% 1.74%
After expense reimbursement
and waived fees (d) ................. 1.43%(f) 1.29%(g) 1.35%(g) 1.50%(g) 1.50% 1.50%
Ratios of net investment income (loss)
to average net assets:
Before expense reimbursement
and waived fees (e) ................. 2.44%(f) 1.66% 0.11% (0.46%) (0.72%) (0.88%)
After expense reimbursement
and waived fees (e) ................. 2.44%(f) 1.66%(g) 0.11%(g) (0.46%)(g) (0.67%) (0.64%)
Portfolio turnover ........................ 6%(c) 34% 10% 22% 3% 45%
(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 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
1.28%, 1.32% and 1.41% and the ratios of net investment income (loss) to
average net assets would have been 1.68%, 0.14% and (0.37%) for the years
ended October 31, 2008, 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, 2009 ------------------------------------------------------------------
(UNAUDITED) 2008 2007 2006 2005 2004
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period ...... $ 10.14 $ 13.93 $ 13.03 $ 11.99 $ 11.46 $ 10.67
---------- ---------- ---------- ---------- ---------- ----------
Income (loss) from investment operations:
Net investment income .................. 0.12 0.27 0.18 0.21 0.15 0.14
Net realized and unrealized gains
(losses) on investments ............. (0.15) (3.39) 1.34 1.23 0.87 0.83
---------- ---------- ---------- ---------- ---------- ----------
Total from investment operations .......... (0.03) (3.12) 1.52 1.44 1.02 0.97
---------- ---------- ---------- ---------- ---------- ----------
Less distributions:
Distributions from net
investment income ................... (0.32) (0.36) (0.32) (0.33) (0.24) (0.18)
Distributions from net realized gains .. -- (0.31) (0.30) (0.07) (0.25) --
---------- ---------- ---------- ---------- ---------- ----------
Total distributions ....................... (0.32) (0.67) (0.62) (0.40) (0.49) (0.18)
---------- ---------- ---------- ---------- ---------- ----------
Proceeds from redemption fees collected ... 0.00(a) 0.00(a) 0.00(a) -- 0.00(a) --
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period ............ $ 9.79 $ 10.14 $ 13.93 $ 13.03 $ 11.99 $ 11.46
========== ========== ========== ========== ========== ==========
TOTAL RETURN (b) ............................. (0.29%)(c) (23.44%) 12.09% 12.32% 9.12% 9.12%
========== ========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (000's) ......... $ 128,732 $ 136,999 $ 128,117 $ 97,811 $ 76,560 $ 51,635
========== ========== ========== ========== ========== ==========
Ratios of expenses to average net assets(d) 1.03%(f) 1.00% 1.06% 1.08% 1.06% 1.12%
Ratios of net investment income
to average net assets(e) ............... 2.53%(f) 1.46% 1.07% 1.43% 1.06% 1.04%
Portfolio turnover ........................ 17%(c) 17% 8% 12% 11% 11%
(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 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 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.
27
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2009 (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 maintains 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.
28
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
================================================================================
The investment objective of New Century International Portfolio is to provide
capital growth, with a secondary objective to provide income, while managing
risk. This Portfolio seeks to achieve its objectives by investing primarily in
shares of registered investment companies that emphasize investments in equities
and fixed income securities (foreign, worldwide, emerging markets and domestic).
The investment objective of New Century Alternative Strategies Portfolio is to
provide long-term capital appreciation, with a secondary objective to earn
income, while managing risk. This Portfolio seeks to achieve its objectives by
investing primarily in shares of other registered investment companies that
emphasize alternative strategies.
The price of shares of each Portfolio fluctuates daily and there is no assurance
that the Portfolios will be successful in achieving their stated investment
objectives.
The following is a summary of significant accounting policies consistently
followed by the Portfolios in the preparation of their financial statements.
These policies are in conformity with accounting principles generally accepted
in the United States of America.
A. INVESTMENT VALUATION
--------------------
Investments 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, 2009 (UNAUDITED)
================================================================================
The Financial Accounting Standards Board's ("FASB") Statement of Financial
Accounting Standards ("SFAS") No. 157 "Fair Value Measurements" establishes a
single authoritative definition of fair value, sets out a framework for
measuring fair value and requires additional disclosures about fair value
measurements.
Various inputs are used in determining the value of the Portfolios' investments.
These inputs are summarized in the three broad levels listed below:
o Level 1 - quoted prices in active markets for identical securities
o Level 2 - other significant observable inputs
o Level 3 - significant unobservable inputs
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
As of April 30, 2009, all of the inputs used to value the investments of New
Century Capital Portfolio, New Century Balanced Portfolio, New Century
Opportunistic Portfolio and New Century International Portfolio were Level 1.
The following is a summary of the inputs used to value New Century Alternative
Strategies Portfolio's investments as of April 30, 2009:
- --------------------------------------------------------------------------------
NEW CENTURY
ALTERNATIVE
STRATEGIES
VALUATION INPUTS PORTFOLIO
- --------------------------------------------------------------------------------
Level 1 - Quoted prices ........................................ $124,411,379
Level 2 - Other significant observable inputs .................. 5,664,810
Level 3 - Significant unobservable inputs ...................... --
------------
Total .......................................................... $130,076,189
============
- --------------------------------------------------------------------------------
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 is 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, 2009 and
October 31, 2008, proceeds from redemption fees totaled $256 and $93,
respectively, for New Century Capital Portfolio, $0 and $43, respectively, for
New Century Balanced
30
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
================================================================================
Portfolio, $274 and $29, respectively, for New Century Opportunistic Portfolio,
$1,366 and $1,655, respectively, for New Century International Portfolio and
$5,262 and $20,136, 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 to shareholders of 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, 2009 and October 31,
2008 was as follows:
- --------------------------------------------------------------------------------
ORDINARY LONG-TERM TOTAL
PERIOD ENDED INCOME CAPITAL GAINS DISTRIBUTIONS
- --------------------------------------------------------------------------------
New Century Capital Portfolio
April 30, 2009 .................... $ 208,624 $ -- $ 208,624
October 31, 2008 .................. $ 998,890 $5,981,681 $6,980,571
New Century Balanced Portfolio
April 30, 2009 .................... $1,229,934 $ -- $1,229,934
October 31, 2008 .................. $1,727,951 $4,963,213 $6,691,164
New Century Opportunistic Portfolio
April 30, 2009 .................... $ -- $ -- $ --
October 31, 2008 .................. $ 65,157 $ 464,131 $ 529,288
New Century International Portfolio
April 30, 2009 .................... $ 835,144 $ -- $ 835,144
October 31, 2008 .................. $2,455,459 $3,446,048 $5,901,507
New Century Alternative Strategies
Portfolio
April 30, 2009 .................... $4,198,238 $ -- $4,198,238
October 31, 2008 .................. $3,290,139 $2,850,232 $6,140,371
- --------------------------------------------------------------------------------
31
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
================================================================================
The differences between the book and tax basis of distributions for the periods
ended April 30, 2009 and October 31, 2008 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. 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, 2009. Accordingly, for the six months ended
April 30, 2009, the Advisor waived $30,638 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.
32
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
================================================================================
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, 2009, 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, New Century
International Portfolio and New Century Alternative Strategies Portfolio. No
fees have been waived or reimbursed for New Century Capital Portfolio.
As of April 30, 2009, the amounts available for reimbursement that have been
paid and/or waived by the Advisor on behalf of New Century Opportunistic
Portfolio are $146,470. As of April 30, 2009, the Advisor may recapture a
portion of such amounts no later than the dates as stated below:
- --------------------------------------------------------------------------------------
October 31, October 31, October 31, April 30,
2009 2010 2011 2012
- --------------------------------------------------------------------------------------
New Century Opportunistic Portfolio.. $25,577 $48,660 $41,595 $30,638
- --------------------------------------------------------------------------------------
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 $16,000
annual retainer, paid quarterly, and a per meeting fee of $3,500. The Portfolios
will also pay each Trustee who is not affiliated with the Advisor a $3,500
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
33
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
================================================================================
"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, 2009, the Distributor received $65,050,
$56,265, $11,038, $67,235 and $68,750 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, 2009, the Distributor also received sales
commissions and other compensation of $21,279, $12,080, $189, $3,520 and $78,599
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.
(4) INVESTMENT TRANSACTIONS
For the six months ended April 30, 2009, 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 ............ $ 2,743,982 $ 5,160,518 $ 516,485 $ 5,219,019 $24,957,294
=========== =========== =========== =========== ===========
Proceeds from sales of investment securities.. $ 2,748,535 $ 7,855,200 $ 688,729 $ 3,617,363 $21,477,635
=========== =========== =========== =========== ===========
- ---------------------------------------------------------------------------------------------------------------------
(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.
34
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
================================================================================
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Portfolio's intention to declare as
dividends in each calendar year at least 98% of its net investment income
(earned during the calendar year) and 98% of its net realized capital gains
(earned during the twelve months ended October 31) plus undistributed amounts
from prior years.
For the six months ended April 30, 2009, the New Century Alternative Strategies
Portfolio reclassified accumulated net realized losses of $39,705 against
accumulated undistributed net investment income on the Statements of Assets and
Liabilities. Such reclassification, the result of permanent differences between
the financial statement and income tax reporting requirements, has no effect on
the Portfolio's net assets or net asset value per share.
The following information is computed on tax basis for each item as of April 30,
2009:
- ------------------------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
ordinary income ................ $ 306,928 $ 80,194 $ 22,643 $ 286,892 $ 310,864
Net unrealized depreciation. ...... (3,685,186) (4,978,490) (1,308,972) (5,074,037) (20,087,051)
Capital loss carryforwards ........ (10,164,003) (4,071,137) (2,372,793) (7,905,671) (1,409,701)
Other gains (losses) .............. (502,868) 260,643 20,243 (1,532,501) (6,434,431)
------------- ------------- ------------- ------------- -------------
Total accumulated deficit ......... $ (14,045,129) $ (8,708,790) $ (3,638,879) $ (14,225,317) $ (27,620,319)
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------
The following information is based upon the federal income tax cost of
investment securities as of April 30, 2009:
- ------------------------------------------------------------------------------------------------------------------------
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.. $ 77,399,423 $ 61,461,951 $ 11,467,828 $ 74,835,783 $ 150,163,240
============= ============= ============= ============= =============
Gross unrealized appreciation ..... $ 4,183,820 $ 1,615,492 $ 219,495 $ 5,396,185 $ 3,952,420
Gross unrealized depreciation ..... (7,869,006) (6,593,982) (1,528,467) (10,470,222) (24,039,471)
------------- ------------- ------------- ------------- -------------
Net unrealized depreciation ....... $ (3,685,186) $ (4,978,490) $ (1,308,972) $ (5,074,037) $ (20,087,051)
============= ============= ============= ============= =============
- ------------------------------------------------------------------------------------------------------------------------
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
35
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
APRIL 30, 2009 (UNAUDITED)
================================================================================
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 differing requirements regarding accruing income on certain structured notes
for tax purposes.
As of October 31, 2008, the Portfolios had the following capital loss
carryforwards for federal income tax purposes. These capital loss carryforwards
may be utilized in the current and future years to offset net realized capital
gains, if any, prior to distributing such gains to shareholders.
- -------------------------------------------------------------------------------------------------------------------
NEW
NEW NEW NEW NEW CENTURY
CENTURY CENTURY CENTURY CENTURY ALTERNATIVE
CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES
EXPIRES OCTOBER 31, PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- -------------------------------------------------------------------------------------------------------------------
2016........................ $ 10,164,003 $ 4,071,137 $ 2,372,793 $ 7,905,671 $ 1,409,701
- -------------------------------------------------------------------------------------------------------------------
FASB Interpretation No. 48 ("FIN 48") "Accounting for Uncertainty in Income
Taxes" 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
recorded as a tax benefit or expense in the current year. As required by FIN 48,
management has analyzed the Funds' tax positions taken on Federal income tax
returns for all open tax years (tax years ended October 31, 2006 through October
31, 2008) and has concluded that no provision for income tax is required in
these financial statements.
(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.
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, 2008) and held for the entire period (April 30, 2009).
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, 2008 April 30, 2009 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $ 960.90 $6.86
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,017.80 $7.05
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Capital Portfolio's annualized
expense ratio of 1.41% for the period, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
NEW CENTURY BALANCED PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
November 1, 2008 April 30, 2009 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $1,019.10 $7.26
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,017.60 $7.25
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Balanced Portfolio's annualized
expense ratio of 1.45% for the period, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
NEW CENTURY OPPORTUNISTIC PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
November 1, 2008 April 30, 2009 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $ 966.10 $7.31
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,017.36 $7.50
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Opportunistic Portfolio's annualized
expense ratio of 1.50% for the period, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
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, 2008 April 30, 2009 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $ 998.60 $7.09
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,017.70 $7.15
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century International Portfolio's annualized
expense ratio of 1.43% for the period, multiplied by the average account
value over the period, multiplied by 181/365 (to reflect the one-half year
period).
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO
- --------------------------------------------------------------------------------
Beginning Ending
Account Value Account Value Expenses Paid
November 1, 2008 April 30, 2009 During Period*
- --------------------------------------------------------------------------------
Based on Actual Fund Return $1,000.00 $ 997.10 $5.10
Based on Hypothetical 5% Return
(before expenses) $1,000.00 $1,019.69 $5.16
- --------------------------------------------------------------------------------
* Expenses are equal to the New Century Alternative Strategies Portfolio's
annualized expense ratio of 1.03% for the period, multiplied by the
average account value over the period, multiplied by 181/365 (to reflect
the one-half year period).
39
This page intentionally left blank.
This page intentionally left blank.
================================================================================
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 July 2, 2009
-------------------------
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 July 2, 2009
-------------------------
By (Signature and Title)* /s/ Nicole M. Tremblay
--------------------------------------------------
Nicole M. Tremblay, Treasurer
Date July 2, 2009
-------------------------
* Print the name and title of each signing officer under his or her signature.