UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-21587
OLD MUTUAL ADVISOR FUNDS
(Exact name of registrant as specified in charter)
--------
4643 South Ulster Street, Suite 600
Denver, CO 80237
(Address of principal executive offices) (Zip code)
David J. Bullock
4643 South Ulster Street, Suite 600, Denver, CO 80237
(Name and address of agent for service)
Copies to:
- ----------------------------------------- --------------------------------------
Jay Baris, Esq. Andra Ozols
Kramer Levin Naftalis & Frankel LLP Old Mutual Capital, Inc.
919 Third Avenue 4643 South Ulster Street, Suite 600
New York, New York 10022 Denver, CO 80237
(212) 715-9100 (888) 744-5050
- ----------------------------------------- --------------------------------------
Registrant's telephone number, including area code: 1-303-770-7600
DATE OF FISCAL YEAR END: JULY 31, 2005
DATE OF REPORTING PERIOD: JULY 31, 2005
ITEM 1. REPORTS TO STOCKHOLDERS.
2005 ANNUAL REPORT
TO SHAREHOLDERS
July 31, 2005
OLD MUTUAL ADVISOR FUNDS
- --------------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
OLD MUTUAL
ADVISOR FUNDS
[Logo omitted]
================================================================================
ACADIAN
[Logo omitted]
Analytic Investors
[Logo omitted]
BARROW, HANLEY, MEWHINNEY & STRAUSS, INC.
[Logo omitted]
CLAY FINLAY, INC.
[Logo omitted]
DWIGHT
Asset Management Company
[Logo omitted]
HEITMAN
A Real Estate Investment Management Firm
[Logo omitted]
IBBOTSON Associates
Advisors, LLC
[Logo omitted]
LIBERTY RIDGE
CAPITAL
[Logo omitted]
P I C
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PROVIDENT
INVESTMENT
COUNSEL
[Logo omitted]
ROGGE
[Logo omitted]
THOMPSON, SIEGEL & WALMSLEY, INC.
Investment Counsel
[Logo omitted]
OLD MUTUAL ADVISOR FUNDS
TABLE OF CONTENTS
About This Report ......................................................................................................... 2
Message to Shareholders ................................................................................................... 3
Management Overview and Statements of Net Assets
Old Mutual Asset Allocation Conservative Portfolio
Institutional Class (OMCIX), Class A (OMCAX), Class C (OMCCX) .................................................... 4
Old Mutual Asset Allocation Balanced Portfolio
Institutional Class (OMBLX), Class A (OMABX), Class C (OMBCX) .................................................... 18
Old Mutual Asset Allocation Moderate Growth Portfolio
Institutional Class (OMMIX), Class A (OMMAX), Class C (OMMCX) .................................................... 35
Old Mutual Asset Allocation Growth Portfolio
Institutional Class (OMGIX), Class A (OMGAX), Class C (OMCGX) .................................................... 52
Portfolio Expenses Example ................................................................................................ 67
Statements of Operations .................................................................................................. 68
Statements of Changes in Net Assets ....................................................................................... 69
Financial Highlights ...................................................................................................... 70
Notes to Financial Statements ............................................................................................. 72
Report of Independent Registered Public Accounting Firm ................................................................... 80
Notice to Shareholders (Unaudited) ........................................................................................ 81
Proxy Voting and Portfolio Holdings ....................................................................................... 82
Activities and Composition of the Board of Trustees and Officers of the Trust ............................................. 83
1
OLD MUTUAL ADVISOR FUNDS
ABOUT THIS REPORT
HISTORICAL RETURNS
All total returns mentioned in this report account for the change in a
Portfolio's per-share price and the reinvestment of any dividends and capital
gain distributions. If your account is set up to receive Portfolio distributions
in cash rather than reinvest them, your actual return may differ from these
figures. The Portfolio's performance results do not reflect the deduction of
taxes that a shareholder would pay on Portfolio distributions or on the
redemption of Portfolio shares.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance results represent
past performance, and current performance may be higher or lower. Please call
1-888-744-5050 or visit www.oldmutualcapital.com for performance results current
to the most recent month-end.
The since inception returns have not been annualized. Performance results for
short periods of time may not be representative of longer-term results.
Performance without loads assumes that no front-end or contingent deferred sales
charge applied or the investment was not redeemed. Performance with loads
assumes that a front-end or contingent deferred sales charge applied to the
extent applicable. The Portfolios each offer Class A, Class C and Institutional
shares. Class A shares have a current maximum up-front sales charge of 5.75% and
are subject to an annual service fee of 0.25%. Class C shares are subject to
aggregate annual distribution and service fees of 1.00% and will be subject to a
contingent deferred sales charge of 1.00% if redeemed within the first 12 months
of purchase. Institutional shares are only available to eligible shareholders.
The returns may reflect fee waivers and/or reimbursements in effect for the
period; absent such fee waivers and reimbursements, performance would have been
lower.
PORTFOLIO DATA
This report reflects views, opinions and portfolio holdings as of July 31, 2005,
the end of the report period and are subject to change. The information is not a
complete analysis of every aspect of any sector, industry, security or the
Portfolios.
Opinions and forecasts regarding industries, companies and/or themes, and
Portfolio composition and holdings, are subject to change at any time based on
market and other conditions, and should not be construed as a recommendation of
any specific security or as investment advice. Percentage holdings as of July
31, 2005 are included in each Portfolio's Statement of Net Assets. There is no
assurance that the securities purchased remain in the Portfolio or that
securities sold have not been repurchased.
There are risks associated with mutual fund investing, including the risk of
loss of principal. There is no assurance that the investment process will
consistently lead to successful results. There are also risks associated with
small- and mid-cap investing, including limited product lines, less liquidity
and small market share. Investments in foreign securities may entail unique
risks, including political, market, and currency risks. Investing in fixed
income securities such as bonds involves interest rate risk. When interest rates
rise, the value of fixed income securities generally decreases. High-yield bonds
involve a greater risk of default and price volatility than U.S. Government and
other higher-quality bonds.
COMPARATIVE INDICES
The comparative indices discussed in this report are meant to provide a basis
for judging a Portfolios' performance against specific securities indices. Each
index shown accounts for both changes in security price and reinvestment of
dividends and distributions, but does not reflect the cost of managing a mutual
fund. The Portfolios may significantly differ in holdings and composition from
an index. Individuals cannot invest directly in an index.
o The unmanaged Standard & Poor's 500 (S&P 500) Index is a market
value-weighted index of large-cap common stocks considered representative of
the broad market.
o The unmanaged Lehman Brothers (LB) U.S. Aggregate Bond Index is a widely
recognized measure of the aggregate bond market. The unmanaged index is
market value-weighted inclusive of accrued interest.
Index returns and statistical data included in this report are provided by
Bloomberg, FactSet and Lehman Brothers.
2
OLD MUTUAL ADVISOR FUNDS
MESSAGE TO SHAREHOLDERS
DEAR SHAREHOLDER:
As we mark the close of the first fiscal year for the Old Mutual Advisor Funds,
we consider the events and milestones that have influenced our performance. It
was not an easy year for the financial markets and the Portfolios faced a
multitude of challenges. However, aided by their adherence to the principles of
asset allocation and risk management, the Portfolios performed as designed. They
posted strong returns for the period and we are pleased with their results.
Over the past year, oil created a slippery slope against which the financial
markets struggled to climb. Other market dynamics, like the flattening yield
curve and the red-hot housing market, created a perplexing environment that was
difficult to navigate at times. Despite these obstacles, the domestic economy
continued to exhibit steady growth, buoyed by extraordinarily resilient
consumers, a long-awaited increase in spending on the part of businesses, and an
improved employment outlook.
We believe the experience and skill of the institutional managers who manage the
investment allocations of the Portfolios were instrumental in overcoming the
unique challenges that prevailed during the period. The success of their
disciplines is evident in the Portfolio's performance, which is detailed in the
pages that follow.
Looking forward, we are encouraged by signs of underlying strength in the
economy and are optimistic about the prospects for continued growth. The recent
surge in domestic consumption and exports sets the stage for a possible future
increase in economic growth. Businesses eventually will have to raise production
in order to restock their shelves and catch up to spending and exports. While
the Federal Reserve believes inflationary risks still outweigh the chance of an
economic stall, many experts believe that we are nearing the end of the cycle of
monetary tightening. We believe stabilization of interest rates could be
beneficial for the stock market.
We also anticipate that the extended outperformance of some market segments and
industry sectors, like value, energy and real estate, may be shifting to other
areas, such as growth and technology. Periods of shifting market leadership
provide opportunities for the Portfolios and their dynamic, active approach
particularly with the help of Ibbotson Associates, an industry leader that
provides proprietary analysis and asset allocation guidance to the Portfolios.
Delivering solid investment performance to shareholders is one of our top
priorities, matched only by our desire to also provide first class customer
service. Over the past year, we have expanded our operations and product
offerings with teams of experienced customer service and investment
professionals. Our newly enhanced website boasts helpful features for investors,
including account access. And we have just added the Old Mutual Copper Rock
Emerging Growth Fund, a small-cap growth option managed by a seasoned investment
team, to the Old Mutual lineup to broaden access to important investment
choices. Our ultimate goal is to construct a world-class center of performance
and service excellence and I am confident we are well on our way to achieving
that objective.
It has been a positive year for the Portfolios and we are equally optimistic
about the prospects for the year ahead. We thank you for your investment in the
Old Mutual Advisor Funds.
Sincerely,
/S/Signature
David J. Bullock
[Photo omitted]
PRESIDENT
OLD MUTUAL ADVISOR FUNDS
3
OLD MUTUAL ADVISOR FUNDS
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
PORTFOLIO PROFILE
For the 10-month period ended July 31, 2005, the Old Mutual Asset Allocation
Conservative Portfolio (Institutional Class) gained 6.60% at net asset value. By
comparison, the Portfolio's benchmarks, the S&P 500 and the Lehman Brothers U.S.
Aggregate Bond Index, gained 12.37% and 2.56% for the same period, respectively.
Performance for all share classes is included on the following page.
FACTORS CONTRIBUTING TO PORTFOLIO PERFORMANCE
During the period, the Portfolio was managed to a target allocation of
approximately 70% fixed-income and 30% equities. The fixed-income portion of the
Portfolio was heavily tilted towards investment-grade core bonds. These core
bond positions included corporate bonds, mortgage-backed securities, and U.S.
government and agency debt. Generally, the core bond positions were slightly
overweighted toward the credit sector with specific overweights in stable
sectors such as Utilities and Energy. The Portfolio's position in short-term
corporate bonds provided solid performance while holdings in international bonds
and high-yield bonds made only minor performance contributions for the period.
U.S. Treasury note positions also detracted from performance.
The primary factor behind the Portfolio's performance was its ability to capture
solid upside in its equity holdings, primarily in the domestic large-cap and
international equity categories. Domestic large-cap holdings had the largest
positive contribution to overall returns, including positions in ConocoPhillips,
Allstate and Wendy's International. In the international equity space, the
Portfolio's position in the communication and distribution services industries
significantly contributed to performance while the position in the
transportation industry had a negative impact on returns. Most notably,
automobile leasing company Sumisho Auto Leasing (Japan), negatively impacted
returns and was sold from the Portfolio.
MARKET FACTORS AND ENVIRONMENT
The Federal Reserve continued its tightening of monetary policy during the
period. By the end of June, the Federal Funds rate had been raised for the ninth
straight time, increasing by 0.25% to 3.25%. This proved to be the largest
factor affecting the fixed-income markets during the period. The long end of the
bond market, which typically reacts to inflation expectations, rallied during
the period based on the belief that the Federal Reserve is anticipatory in its
move to contain inflation. Short-term fixed income, which is usually more
responsive to changes in the Federal Funds rate, continued its yield-curve
flattening trend. The Federal Reserve has reasserted its intentions of
increasing rates at a "measured" pace and commented that "although energy prices
have risen further, the expansion remains firm and labor market conditions
continue to improve gradually."
Equity markets generally showed resilience during the period and were able to
post gains, despite record oil prices, rising interest rates, and ongoing
concerns about the health of the economy. As the economy and earnings growth
stabilize and interest rates increase, value stocks are expected to outperform
growth stocks. However, value stocks have been outpacing growth stocks by an
average of 15% per year over the past five years. This has driven the current
relative market valuation towards favoring growth stocks. Although we continue
to overweight value stocks, we are keeping a close watch on growth versus value
indicators.
Rising short-term interest rates and inflationary pressures will eventually
result in increasing yields for long-term bonds. As a result, we continue to
overweight short-term fixed income and underweight long-term bonds.
4
OLD MUTUAL ADVISOR FUNDS
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
ASSET CLASS WEIGHTINGS AS OF JULY 31, 2005
[Pie chart omitted -- plot points are as follows:]
Common Stock 23%
Residential Mortgages-Agency 18%
Corporate Bonds 18%
Repurchase Agreements 17%
U.S. Treasury Obligations 10%
Foreign Common Stock 6%
Foreign Bonds 4%
Asset-Backed Securities 2%
Mortgage Related 1%
U.S. Government Obligations 1%
% of Total Portfolio Investments
TOTAL RETURN AS OF JULY 31, 2005
Since
Inception*
- --------------------------------------------------------------------------------
Institutional Class 6.60%
- --------------------------------------------------------------------------------
Class A with front-end load 0.25%
- --------------------------------------------------------------------------------
Class A without load 6.36%
- --------------------------------------------------------------------------------
Class C with deferred sales load 4.75%
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Class C without deferred sales load 5.75%
- --------------------------------------------------------------------------------
S&P 500 Index 12.37%
- --------------------------------------------------------------------------------
Lehman Brothers U.S. Aggregate Bond Index 2.56%
- --------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indices can be found on page 2.
* Not annualized, inception date 9/30/04
PORTFOLIO PERFORMANCE
[Line chart omitted -- plot points are as follows:]
Old Mutual
Old Mutual Old Mutual Asset
Asset Asset Allocation
Allocation Allocation Conservative Lehman
Conservative Conservative Portfolio, Brothers
Portfolio, Portfolio, Institutional S&P 500 U.S. Aggregate
Class A Class C Class Index Index
- ---------------------------------------------------------------------------------------------------------------------------
9/30/2004 $ 9425 $10000 $10000 $10000 $10000
10/31/2004 9472 10050 10050 10153 10084
11/30/2004 9613 10190 10210 10564 10003
12/31/2004 9772 10356 10380 10923 10095
1/31/2005 9734 10306 10340 10657 10159
2/28/2005 9838 10416 10450 10881 10099
3/31/2005 9754 10321 10357 10688 10048
4/30/2005 9726 10291 10338 10485 10183
5/31/2005 9850 10401 10469 10818 10293
6/30/2005 9929 10484 10559 10834 10350
7/31/2005 10025 10475 10660 11237 10256
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The graph above compares
an investment made in each of the Portfolio's Class shares on the inception date
of 9/30/04 to an investment made in unmanaged securities indices on that date.
The performance of the Portfolio's Class A shares shown in the line graph takes
into account the maximum initial sales charge. Performance for the Portfolio's
Class C shares assumes payment of a contingent deferred sales load, which is
charged on investments held less than one year. The Portfolio's performance in
this chart and the performance table assumes reinvestment of dividends and
capital gain distributions but does not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or on the redemption of
Portfolio shares.
5
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
COMMON STOCK -- 24.0%
BASIC MATERIALS -- 0.9%
AGRICULTURAL CHEMICALS -- 0.2%
Agrium 1,300 $ 30
Potash Corporation of Saskatchewan 70 7
--------------
37
- -------------------------------------------------------------
CHEMICALS-DIVERSIFIED -- 0.3%
Dow Chemical 475 23
Lyondell Chemical 719 20
Nova Chemicals 500 17
--------------
60
- -------------------------------------------------------------
CHEMICALS-PLASTICS -- 0.0%
Spartech 135 3
--------------
3
- -------------------------------------------------------------
CHEMICALS-SPECIALTY -- 0.0%
Eastman Chemical 60 3
Hercules* 53 1
--------------
4
- -------------------------------------------------------------
COAL -- 0.0%
Peabody Energy 160 10
--------------
10
- -------------------------------------------------------------
INDUSTRIAL GASES -- 0.1%
Air Products & Chemicals 80 5
Praxair 140 7
--------------
12
- -------------------------------------------------------------
METAL-COPPER -- 0.1%
Phelps Dodge 250 27
--------------
27
- -------------------------------------------------------------
PAPER & RELATED PRODUCTS -- 0.1%
Domtar 345 3
Smurfit-Stone Container* 690 8
--------------
11
- -------------------------------------------------------------
STEEL-PRODUCERS -- 0.1%
Nucor 400 22
--------------
22
--------------
TOTAL BASIC MATERIALS (COST $171) 186
--------------
- -------------------------------------------------------------
CONSUMER CYCLICAL -- 2.7%
APPAREL MANUFACTURERS -- 0.2%
Coach* 220 8
Polo Ralph Lauren 320 16
VF 74 4
--------------
28
- -------------------------------------------------------------
ATHLETIC FOOTWEAR -- 0.0%
Nike, Cl B 80 7
--------------
7
- -------------------------------------------------------------
AUDIO/VIDEO PRODUCTS -- 0.0%
Dolby Laboratories, Cl A* 230 4
--------------
4
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 0.0%
BorgWarner 130 $ 8
--------------
8
- -------------------------------------------------------------
BROADCAST SERVICES/PROGRAMMING -- 0.1%
Citadel Broadcasting* 405 5
Liberty Global, Cl A* 122 6
--------------
11
- -------------------------------------------------------------
BUILDING-RESIDENTIAL/COMMERCIAL -- 0.3%
DR Horton 666 27
KB Home 228 19
Pulte Homes 110 10
--------------
56
- -------------------------------------------------------------
CASINO SERVICES -- 0.2%
Harrah's Entertainment 300 24
International Game Technology 335 9
Scientific Games, Cl A* 260 7
--------------
40
- -------------------------------------------------------------
CRUISE LINES -- 0.2%
Carnival 676 35
Royal Caribbean Cruises 151 7
--------------
42
- -------------------------------------------------------------
DISTRIBUTION/WHOLESALE -- 0.0%
CDW 125 8
--------------
8
- -------------------------------------------------------------
ENTERTAINMENT SOFTWARE -- 0.2%
Activision* 1,749 35
Electronic Arts* 100 6
--------------
41
- -------------------------------------------------------------
GOLF -- 0.0%
Callaway Golf 280 4
--------------
4
- -------------------------------------------------------------
HOTELS & MOTELS -- 0.1%
Fairmont Hotels & Resorts 130 4
Marriott International, Cl A 140 10
Starwood Hotels & Resorts Worldwide 70 4
--------------
18
- -------------------------------------------------------------
MOTORCYCLE/MOTOR SCOOTER -- 0.0%
Harley-Davidson 120 6
--------------
6
- -------------------------------------------------------------
MULTIMEDIA -- 0.2%
EW Scripps, Cl A 200 10
Walt Disney 930 24
--------------
34
- -------------------------------------------------------------
PUBLISHING-NEWSPAPERS -- 0.1%
Gannett 189 14
--------------
14
- -------------------------------------------------------------
6
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
PUBLISHING-PERIODICALS -- 0.0%
Reader's Digest 190 $ 3
--------------
3
- -------------------------------------------------------------
RADIO -- 0.0%
Westwood One* 190 4
--------------
4
- -------------------------------------------------------------
RETAIL-APPAREL/SHOE -- 0.1%
Ross Stores 230 6
Urban Outfitters* 70 4
--------------
10
- -------------------------------------------------------------
RETAIL-ARTS & CRAFTS -- 0.1%
Michaels Stores 500 20
--------------
20
- -------------------------------------------------------------
RETAIL-BEDDING -- 0.0%
Bed Bath & Beyond* 80 4
--------------
4
- -------------------------------------------------------------
RETAIL-BUILDING PRODUCTS -- 0.2%
Home Depot 158 7
Lowe's 320 21
--------------
28
- -------------------------------------------------------------
RETAIL-DISCOUNT -- 0.1%
Costco Wholesale 30 1
Dollar General 568 12
Target 80 5
--------------
18
- -------------------------------------------------------------
RETAIL-DRUG STORE -- 0.1%
CVS 370 11
Walgreen 100 5
--------------
16
- -------------------------------------------------------------
RETAIL-JEWELRY -- 0.0%
Tiffany 140 5
--------------
5
- -------------------------------------------------------------
RETAIL-MAJOR DEPARTMENT STORE -- 0.1%
JC Penney Holding 471 26
--------------
26
- -------------------------------------------------------------
RETAIL-OFFICE SUPPLIES -- 0.1%
OfficeMax 235 7
Staples 310 7
--------------
14
- -------------------------------------------------------------
RETAIL-PET FOOD & SUPPLIES -- 0.0%
Petco Animal Supplies* 200 6
--------------
6
- -------------------------------------------------------------
RETAIL-REGIONAL DEPARTMENT STORE -- 0.1%
Kohl's* 180 10
--------------
10
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
RETAIL-RESTAURANTS -- 0.1%
Darden Restaurants 182 $ 7
PF Chang's China Bistro* 90 5
Starbucks* 60 3
Wendy's International 218 11
--------------
26
- -------------------------------------------------------------
TELEVISION -- 0.0%
Univision Communications, Cl A* 200 6
--------------
6
- -------------------------------------------------------------
TOYS -- 0.1%
Mattel 1,061 20
--------------
20
--------------
TOTAL CONSUMER CYCLICAL (COST $490) 537
--------------
- -------------------------------------------------------------
CONSUMER NON-CYCLICAL -- 1.5%
AGRICULTURAL OPERATIONS -- 0.1%
Monsanto 150 10
Tejon Ranch* 140 9
--------------
19
- -------------------------------------------------------------
BEVERAGES-NON-ALCOHOLIC -- 0.0%
PepsiCo 80 4
--------------
4
- -------------------------------------------------------------
BREWERY -- 0.1%
Molson Coors Brewing, Cl B 300 19
--------------
19
- -------------------------------------------------------------
COSMETICS & TOILETRIES -- 0.1%
Gillette 57 3
Procter & Gamble 120 7
--------------
10
- -------------------------------------------------------------
FOOD-DAIRY PRODUCTS -- 0.2%
Dean Foods* 1,023 37
--------------
37
- -------------------------------------------------------------
FOOD-FLOUR & GRAIN -- 0.1%
Archer-Daniels-Midland 735 17
--------------
17
- -------------------------------------------------------------
FOOD-MEAT PRODUCTS -- 0.1%
Smithfield Foods* 1,050 27
--------------
27
- -------------------------------------------------------------
FOOD-MISCELLANEOUS/DIVERSIFIED -- 0.1%
ConAgra Foods 577 13
--------------
13
- -------------------------------------------------------------
FOOD-RETAIL -- 0.0%
Whole Foods Market 30 4
--------------
4
- -------------------------------------------------------------
OFFICE SUPPLIES & FORMS -- 0.0%
Avery Dennison 115 6
--------------
6
- -------------------------------------------------------------
7
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
POULTRY -- 0.1%
Pilgrim's Pride 500 $ 19
--------------
19
- -------------------------------------------------------------
TOBACCO -- 0.6%
Altria Group 910 61
Imperial Tobacco ADR 577 30
UST 649 30
--------------
121
--------------
TOTAL CONSUMER NON-CYCLICAL (COST $286) 296
--------------
- -------------------------------------------------------------
ENERGY -- 3.0%
COAL -- 0.2%
Arch Coal 60 3
Consol Energy 500 34
--------------
37
- -------------------------------------------------------------
OIL & GAS DRILLING -- 0.6%
ENSCO International 170 7
GlobalSantaFe 115 5
Nabors* 620 40
Precision Drilling* 400 17
Pride International* 965 25
Rowan* 180 6
Todco, Cl A* 125 4
Transocean* 100 6
--------------
110
- -------------------------------------------------------------
OIL COMPANIES-EXPLORATION &
PRODUCTION -- 0.2%
Newfield Exploration* 600 25
Noble Energy 10 1
Pogo Producing 60 3
Ultra Petroleum* 180 7
Unocal 14 1
XTO Energy 144 5
--------------
42
- -------------------------------------------------------------
OIL COMPANIES-INTEGRATED -- 1.2%
BP ADR 559 37
Chevron 535 31
ConocoPhillips 786 49
Exxon Mobil 976 58
Marathon Oil 225 13
Occidental Petroleum 658 54
--------------
242
- -------------------------------------------------------------
OIL-FIELD SERVICES -- 0.1%
BJ Services 170 10
Schlumberger 70 6
Tidewater 90 4
Weatherford International* 60 4
--------------
24
- -------------------------------------------------------------
OIL FIELD MACHINERY & EQUIPMENT -- 0.2%
Cooper Cameron* 300 21
National Oilwell Varco* 200 10
Smith International 130 9
--------------
40
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
OIL REFINING & MARKETING -- 0.1%
- -------------------------------------------------------------
Valero Energy 300 $ 25
--------------
25
- -------------------------------------------------------------
PIPELINES -- 0.4%
El Paso 485 6
National Fuel Gas 700 21
Questar 500 35
Williams 265 6
--------------
68
--------------
TOTAL ENERGY (COST $492) 588
--------------
- -------------------------------------------------------------
FINANCIAL -- 4.7%
COMMERCIAL BANKS-EASTERN US -- 0.1%
Commerce Bancorp 450 15
--------------
15
- -------------------------------------------------------------
COMMERCIAL BANKS-SOUTHERN US -- 0.1%
Colonial BancGroup 1,200 28
--------------
28
- -------------------------------------------------------------
COMMERCIAL BANKS-WESTERN US -- 0.0%
UCBH Holdings 200 4
--------------
4
- -------------------------------------------------------------
FINANCE-CONSUMER LOANS -- 0.2%
SLM 839 43
--------------
43
- -------------------------------------------------------------
FINANCE-CREDIT CARD -- 0.4%
Capital One Financial 150 13
MBNA 1,396 35
Providian Financial* 1,288 24
--------------
72
- -------------------------------------------------------------
FINANCE-INVESTMENT BANKER/BROKER -- 0.4%
Bear Stearns 208 21
Citigroup 749 33
Goldman Sachs Group 150 16
Lehman Brothers Holdings 33 3
--------------
73
- -------------------------------------------------------------
FINANCE-MORTGAGE LOAN/BANKER -- 0.1%
Countrywide Financial 661 24
--------------
24
- -------------------------------------------------------------
FINANCIAL GUARANTEE INSURANCE -- 0.1%
MGIC Investment 305 21
--------------
21
- -------------------------------------------------------------
INSURANCE BROKERS -- 0.1%
Brown & Brown 500 22
--------------
22
- -------------------------------------------------------------
INVESTMENT MANAGEMENT/ADVISORY SERVICES -- 0.0%
Federated Investors, Cl B 140 4
--------------
4
- -------------------------------------------------------------
8
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
LIFE/HEALTH INSURANCE -- 0.4%
Cigna 619 $ 66
UnumProvident 475 9
--------------
75
- -------------------------------------------------------------
MULTI-LINE INSURANCE -- 0.8%
ACE 34 2
Allmerica Financial* 125 5
Allstate 595 36
American International Group 40 2
Assurant 60 2
Hartford Financial Services Group 309 25
Metlife 487 24
XL Capital, Cl A 775 56
--------------
152
- -------------------------------------------------------------
PROPERTY/CASUALTY INSURANCE -- 0.3%
Fidelity National Financial 125 5
Safeco 500 28
WR Berkley 600 22
--------------
55
- -------------------------------------------------------------
REAL ESTATE MANAGEMENT/SERVICES -- 0.1%
CB Richard Ellis Group, Cl A* 285 13
--------------
13
- -------------------------------------------------------------
REAL ESTATE OPERATION/DEVELOPMENT -- 0.0%
St. Joe 40 3
--------------
3
- -------------------------------------------------------------
REINSURANCE -- 0.3%
Aspen Insurance Holdings 165 5
Axis Capital Holdings 245 7
OdysseyRe Holdings 115 3
PartnerRe 400 26
RenaissanceRe Holdings 500 22
--------------
63
- -------------------------------------------------------------
REITS-HOTELS -- 0.0%
Host Marriott 420 8
--------------
8
- -------------------------------------------------------------
REITS-OFFICE PROPERTY -- 0.2%
American Financial Realty Trust 500 7
Boston Properties 400 31
--------------
38
- -------------------------------------------------------------
REITS-REGIONAL MALLS -- 0.1%
CBL & Associates Properties 500 23
Simon Property Group 35 3
--------------
26
- -------------------------------------------------------------
REITS-WAREHOUSE/INDUSTRIAL -- 0.1%
Catellus Development 700 25
--------------
25
- -------------------------------------------------------------
S&L/THRIFTS-EASTERN US -- 0.0%
NewAlliance Bancshares 420 6
--------------
6
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
S&L/THRIFTS-WESTERN US -- 0.3%
Washington Federal 1,040 $ 24
Washington Mutual 737 32
--------------
56
- -------------------------------------------------------------
SUPER-REGIONAL BANKS-US -- 0.6%
Bank of America 889 39
Wachovia 472 24
Wells Fargo 825 50
--------------
113
--------------
TOTAL FINANCIAL (COST $881) 939
--------------
- -------------------------------------------------------------
HEALTH CARE -- 3.7%
DIAGNOSTIC EQUIPMENT -- 0.1%
Cytyc* 460 12
Gen-Probe* 213 9
--------------
21
- -------------------------------------------------------------
DISPOSABLE MEDICAL PRODUCTS -- 0.1%
C.R. Bard 150 10
--------------
10
- -------------------------------------------------------------
HEALTH CARE COST CONTAINMENT -- 0.1%
McKesson 248 11
--------------
11
- -------------------------------------------------------------
MEDICAL INSTRUMENTS -- 0.2%
Boston Scientific* 150 4
Guidant 117 8
Medtronic 40 2
St. Jude Medical* 560 27
--------------
41
- -------------------------------------------------------------
MEDICAL LABS & TESTING SERVICES -- 0.2%
Covance* 500 25
Quest Diagnostics 130 7
--------------
32
- -------------------------------------------------------------
MEDICAL PRODUCTS -- 0.7%
Baxter International 682 27
Becton Dickinson 135 7
Biomet 115 4
Cooper 90 6
Henry Schein* 115 5
Johnson & Johnson 1,010 65
Stryker 70 4
Varian Medical Systems* 60 2
Zimmer Holdings* 240 20
--------------
140
- -------------------------------------------------------------
MEDICAL-BIOMEDICAL/GENETIC -- 0.3%
Amgen* 100 8
Charles River Laboratories International* 180 9
Genentech* 290 26
Genzyme* 90 7
Protein Design Labs* 403 9
--------------
59
- -------------------------------------------------------------
9
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
MEDICAL-DRUGS -- 0.5%
Abbott Laboratories 70 $ 3
Angiotech Pharmaceuticals* 420 6
Bristol-Myers Squibb 832 21
Pfizer 1,454 38
Schering-Plough 1,115 23
Sepracor* 60 3
Wyeth 258 12
--------------
106
- -------------------------------------------------------------
MEDICAL-GENERIC DRUGS -- 0.1%
Barr Pharmaceuticals* 45 2
Teva Pharmaceutical ADR 280 9
Watson Pharmaceuticals* 75 2
--------------
13
- -------------------------------------------------------------
MEDICAL-HMO -- 0.6%
Aetna 75 6
Pacificare Health Systems* 360 28
UnitedHealth Group 688 36
WellPoint* 754 53
--------------
123
- -------------------------------------------------------------
MEDICAL-HOSPITALS -- 0.2%
Community Health Systems* 600 23
Tenet Healthcare* 180 2
Triad Hospitals* 190 10
--------------
35
- -------------------------------------------------------------
MEDICAL-OUTPATIENT/HOME MEDICAL -- 0.0%
Lincare Holdings* 135 5
--------------
5
- -------------------------------------------------------------
MEDICAL-WHOLESALE DRUG DISTRIBUTORS -- 0.3%
AmerisourceBergen 400 29
Cardinal Health 492 29
--------------
58
- -------------------------------------------------------------
OPTICAL SUPPLIES -- 0.1%
Alcon 200 23
--------------
23
- -------------------------------------------------------------
PHARMACY SERVICES -- 0.1%
Caremark Rx* 270 12
--------------
12
- -------------------------------------------------------------
RESPIRATORY PRODUCTS -- 0.0%
Resmed* 90 6
--------------
6
- -------------------------------------------------------------
THERAPEUTICS -- 0.1%
CV Therapeutics* 140 4
Gilead Sciences* 440 20
Vicuron Pharmaceuticals* 185 5
--------------
29
- -------------------------------------------------------------
VETERINARY DIAGNOSTICS -- 0.0%
VCA Antech* 310 7
--------------
7
--------------
TOTAL HEALTH CARE (COST $659) 731
--------------
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
INDUSTRIAL -- 2.2%
AEROSPACE/DEFENSE -- 0.2%
Lockheed Martin 474 $ 29
Rockwell Collins 280 14
--------------
43
- -------------------------------------------------------------
AEROSPACE/DEFENSE-EQUIPMENT -- 0.1%
Alliant Techsystems* 360 26
--------------
26
- -------------------------------------------------------------
AIRLINES -- 0.1%
Southwest Airlines 820 12
--------------
12
- -------------------------------------------------------------
BUILDING PRODUCTS-AIR & HEATING -- 0.0%
York International 35 2
--------------
2
- -------------------------------------------------------------
BUILDING PRODUCTS-CEMENT/AGGREGATE -- 0.2%
Lafarge North America 400 28
--------------
28
- -------------------------------------------------------------
CONTAINERS-PAPER/PLASTIC -- 0.1%
Sealed Air* 400 21
--------------
21
- -------------------------------------------------------------
DIVERSIFIED MANUFACTURING OPERATIONS -- 0.4%
Brink's 140 5
Danaher 40 2
Dover 165 7
General Electric 230 8
Honeywell International 321 13
ITT 90 9
Trinity 100 4
Tyco International 679 21
--------------
69
- -------------------------------------------------------------
ELECTRIC PRODUCTS-MISCELLANEOUS -- 0.1%
Emerson Electric 380 25
--------------
25
- -------------------------------------------------------------
ELECTRONIC MEASURING INSTRUMENTS -- 0.1%
Flir Systems* 230 8
--------------
8
- -------------------------------------------------------------
ENGINES-INTERNAL COMBUSTION -- 0.0%
Cummins 84 7
--------------
7
- -------------------------------------------------------------
GOLD MINING -- 0.1%
Goldcorp 1,500 24
--------------
24
- -------------------------------------------------------------
HAZARDOUS WASTE DISPOSAL -- 0.0%
Stericycle* 90 5
--------------
5
- -------------------------------------------------------------
IDENTIFICATION SYSTEMS/DEVELOPMENT -- 0.0%
Symbol Technologies 330 4
--------------
4
- -------------------------------------------------------------
10
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
INDUSTRIAL AUTOMATION/ROBOT -- 0.1%
Rockwell Automation 160 $ 8
--------------
8
- -------------------------------------------------------------
INSTRUMENTS-SCIENTIFIC -- 0.0%
Applera Corp - Applied
Biosystems Group 190 4
--------------
4
- -------------------------------------------------------------
MACHINERY-CONSTRUCTION & MINING -- 0.2%
Caterpillar 204 11
Terex* 500 24
--------------
35
- -------------------------------------------------------------
MACHINERY-FARM -- 0.1%
CNH Global 1,100 23
--------------
23
- -------------------------------------------------------------
MACHINERY-PRINT TRADE -- 0.0%
Zebra Technologies, Cl A* 105 4
--------------
4
- -------------------------------------------------------------
METAL PROCESSORS & FABRICATORS -- 0.1%
Precision Castparts 110 10
--------------
10
- -------------------------------------------------------------
POWER CONVERSION/SUPPLY
EQUIPMENT -- 0.2%
American Power Conversion 1,634 46
--------------
46
- -------------------------------------------------------------
TOOLS-HAND HELD -- 0.1%
Stanley Works 507 25
--------------
25
- -------------------------------------------------------------
TRANSPORT-EQUIPMENT & LEASING -- 0.0%
GATX 105 4
--------------
4
--------------
TOTAL INDUSTRIAL (COST $391) 433
--------------
- -------------------------------------------------------------
SERVICES -- 0.9%
ADVERTISING AGENCIES -- 0.0%
Interpublic Group* 420 5
--------------
5
- -------------------------------------------------------------
ADVERTISING SERVICES -- 0.0%
Getty Images* 110 9
--------------
9
- -------------------------------------------------------------
COMMERCIAL SERVICES -- 0.1%
Alliance Data Systems* 210 9
ChoicePoint* 200 9
Quanta Services* 695 7
--------------
25
- -------------------------------------------------------------
COMMERCIAL SERVICES-FINANCE -- 0.1%
Paychex 290 10
--------------
10
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
COMPUTER SERVICES -- 0.3%
Anteon International* 200 $ 9
Cognizant Technology
Solutions, Cl A* 670 33
DST Systems* 105 5
Manhattan Associates* 310 7
--------------
54
- -------------------------------------------------------------
E-COMMERCE/SERVICES -- 0.1%
eBay* 280 12
Monster Worldwide* 290 9
--------------
21
- -------------------------------------------------------------
HUMAN RESOURCES -- 0.0%
Hewitt, Cl A* 220 6
--------------
6
- -------------------------------------------------------------
RENTAL AUTO/EQUIPMENT -- 0.1%
Rent-A-Center* 600 13
--------------
13
- -------------------------------------------------------------
SCHOOLS -- 0.1%
Apollo Group, Cl A* 210 16
Education Management* 160 5
--------------
21
- -------------------------------------------------------------
TELEPHONE-INTEGRATED -- 0.1%
AT&T 43 1
Verizon Communications 457 15
--------------
16
--------------
TOTAL SERVICES (COST $167) 180
--------------
- -------------------------------------------------------------
TECHNOLOGY -- 3.0%
APPLICATIONS SOFTWARE -- 0.2%
Citrix Systems* 205 5
Infosys Technologies ADR 120 8
Intuit* 80 4
Microsoft 300 8
Satyam Computer Services ADR 315 9
--------------
34
- -------------------------------------------------------------
CELLULAR TELECOMMUNICATIONS -- 0.2%
Nextel Communications, Cl A* 365 13
Nextel Partners, Cl A* 220 5
NII Holdings* 211 16
--------------
34
- -------------------------------------------------------------
COMPUTER AIDED DESIGN -- 0.0%
Autodesk 230 8
--------------
8
- -------------------------------------------------------------
COMPUTERS -- 0.2%
Apple Computer* 180 7
Dell* 120 5
International Business Machines 392 33
--------------
45
- -------------------------------------------------------------
11
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
COMPUTERS-MEMORY DEVICES -- 0.1%
EMC* 390 $ 5
Network Appliance* 300 8
--------------
13
- -------------------------------------------------------------
DATA PROCESSING/MANAGEMENT -- 0.1%
Dun & Bradstreet* 75 5
MoneyGram International 190 4
NAVTEQ* 190 8
SEI Investments 150 6
--------------
23
- -------------------------------------------------------------
DECISION SUPPORT SOFTWARE -- 0.1%
Cognos* 230 9
--------------
9
- -------------------------------------------------------------
ELECTRONIC COMPONENTS-MISCELLANEOUS -- 0.1%
Celestica* 390 5
Flextronics International* 350 5
Gentex 340 6
Jabil Circuit* 238 7
--------------
23
- -------------------------------------------------------------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 0.6%
ATI Technologies* 745 9
Broadcom, Cl A* 570 24
Fairchild Semiconductor
International* 115 2
Intel 702 19
International Rectifier* 150 7
Intersil, Cl A 130 3
MEMC Electronic Materials* 1,300 22
Nvidia* 350 9
QLogic* 500 16
Xilinx 70 2
--------------
113
- -------------------------------------------------------------
ELECTRONIC DESIGN AUTOMATION -- 0.0%
Cadence Design Systems* 230 4
--------------
4
- -------------------------------------------------------------
ELECTRONIC FORMS -- 0.0%
Adobe Systems 130 4
--------------
4
- -------------------------------------------------------------
ENTERPRISE SOFTWARE/SERVICES -- 0.2%
MicroStrategy, Cl A* 60 4
Oracle* 2,041 28
SAP ADR 330 14
--------------
46
- -------------------------------------------------------------
INTERNET INFRASTRUCTURE EQUIPMENT -- 0.1%
Avocent* 280 10
--------------
10
- -------------------------------------------------------------
INTERNET SECURITY -- 0.2%
Symantec* 1,132 25
VeriSign* 190 5
--------------
30
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
NETWORKING PRODUCTS -- 0.1%
Cisco Systems* 645 $ 12
Juniper Networks* 90 2
--------------
14
- -------------------------------------------------------------
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUITS -- 0.0%
Maxim Integrated Products 60 2
United Microelectronics ADR 980 4
--------------
6
- -------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT -- 0.0%
Applied Materials* 120 2
--------------
2
- -------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT -- 0.1%
Comverse Technology* 321 8
Scientific-Atlanta 100 4
--------------
12
- -------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.2%
Amdocs* 1,470 44
--------------
44
- -------------------------------------------------------------
WEB HOSTING/DESIGN -- 0.0%
Macromedia* 168 7
--------------
7
- -------------------------------------------------------------
WEB PORTALS/ISP -- 0.2%
Google, Cl A* 85 24
Yahoo!* 620 21
--------------
45
- -------------------------------------------------------------
WIRELESS EQUIPMENT -- 0.3%
Motorola 769 17
Nokia ADR 1,703 27
Qualcomm 460 18
--------------
62
--------------
TOTAL TECHNOLOGY (COST $533) 588
--------------
- -------------------------------------------------------------
TRANSPORTATION -- 0.6%
TRANSPORT-MARINE -- 0.1%
Overseas Shipholding Group 400 25
--------------
25
- -------------------------------------------------------------
TRANSPORT-RAIL -- 0.3%
Burlington Northern Santa Fe 434 23
Canadian Pacific Railway 600 23
CSX 16 1
Norfolk Southern 371 14
--------------
61
- -------------------------------------------------------------
TRANSPORT-SERVICES -- 0.0%
Ryder System 151 6
United Parcel Service, Cl B 57 4
--------------
10
- -------------------------------------------------------------
12
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Shares/Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
TRANSPORT-TRUCK -- 0.2%
CNF 125 $ 6
JB Hunt Transport Services 1,250 25
--------------
31
--------------
TOTAL TRANSPORTATION (COST $117) 127
--------------
- -------------------------------------------------------------
UTILITIES -- 0.8%
ELECTRIC-GENERATION -- 0.0%
AES* 370 6
--------------
6
- -------------------------------------------------------------
ELECTRIC-INTEGRATED -- 0.6%
Alliant Energy 115 3
Centerpoint Energy 48 1
Duke Energy 794 24
Entergy 462 36
OGE Energy 1,000 30
Public Service Enterprise Group 72 5
TXU 233 20
--------------
119
- -------------------------------------------------------------
INDEPENDENT POWER PRODUCER -- 0.1%
Reliant Energy* 565 7
--------------
7
- -------------------------------------------------------------
POWER CONVERSION/SUPPLY EQUIPMENT -- 0.1%
American Electric Power 485 19
--------------
19
--------------
TOTAL UTILITIES (COST $131) 151
--------------
TOTAL COMMON STOCK (COST $4,318) 4,756
--------------
- -------------------------------------------------------------
CORPORATE BONDS -- 17.5%
Advanta Capital Trust, Ser B
8.990%, 12/17/26 $15 15
Allegheny Energy Supply 144A
8.250%, 04/15/12 30 34
Allied Waste North America, Ser B
8.875%, 04/01/08 40 42
Alltel
4.656%, 05/17/07 75 75
Alrosa Finance 144A
8.875%, 11/17/14 30 34
America Movil
6.375%, 03/01/35 30 29
American General Finance, Ser G MTN
5.375%, 09/01/09 25 26
Amgen
4.000%, 11/18/09 35 34
AT&T Wireless Services
8.750%, 03/01/31 30 41
8.125%, 05/01/12 30 35
Bank One
5.900%, 11/15/11 60 63
Baxter International
5.250%, 05/01/07 40 40
BCPLU Crystal US Holdings 144A
9.625%, 06/15/14 30 34
- -------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
CORPORATE BONDS -- CONTINUED
BP Amoco
8.500%, 04/01/12 $50 $ 61
Broder Brothers, Ser B
11.250%, 10/15/10 20 20
Capital One Financial
4.800%, 02/21/12 30 29
Carnival
3.750%, 11/15/07 35 34
Chesapeake Energy
6.875%, 01/15/16 15 16
Clayton William Energy 144A
7.750%, 08/01/13 40 40
Comcast
7.625%, 02/15/08 20 21
5.300%, 01/15/14 60 61
Consolidated Natural Gas
6.875%, 10/15/26 35 40
Countrywide Home Loan MTN
3.250%, 05/21/08 50 48
DaimlerChrysler
4.750%, 01/15/08 30 30
Dynegy Holdings 144A
10.125%, 07/15/13 30 34
Echostar DBS
6.625%, 10/01/14 18 18
Fedex
9.650%, 06/15/12 40 51
Fidelity National Financial
7.300%, 08/15/11 25 27
FPL Group Capital, Ser A
4.086%, 02/16/07 10 10
General Cable
9.500%, 11/15/10 30 31
General Electric Capital, Ser A MTN
6.875%, 11/15/10 65 71
General Motors Acceptance
7.000%, 02/01/12 35 34
General Nutrition Center
8.625%, 01/15/11 35 33
Georgia Power, Ser J
4.875%, 07/15/07 40 40
Greenbrier Companies 144A
8.375%, 05/15/15 30 31
HCA
6.375%, 01/15/15 25 26
Hewlett-Packard
5.750%, 12/15/06 50 51
HLI Operating
10.500%, 06/15/10 30 30
HSBC Finance
4.750%, 04/15/10 45 45
Hudbay Mining and Smelting 144A
9.625%, 01/15/12 30 30
Intelsat Bermuda 144A (B)
8.695%, 01/15/12 28 29
J.B. Poindexter
8.750%, 03/15/14 40 36
- -------------------------------------------------------------
13
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
CORPORATE BONDS -- CONTINUED
J.C. Penney
8.125%, 04/01/27 $30 $ 32
John Deere Capital, Ser D MTN
4.400%, 07/15/09 45 45
K. Hovnanian
8.875%, 04/01/12 30 33
Kinder Morgan
6.500%, 09/01/12 45 49
Liberty Media
8.500%, 07/15/29 35 36
Lockheed Martin
7.200%, 05/01/36 60 75
Marathon Oil
5.375%, 06/01/07 50 51
Merrill Lynch, Ser C MTN
4.250%, 02/08/10 50 49
Metlife
5.000%, 06/15/15 35 35
MGM Mirage
5.875%, 02/27/14 35 34
Midamerican Energy Holdings
5.875%, 10/01/12 35 36
3.500%, 05/15/08 45 43
Motorola
8.000%, 11/01/11 40 46
4.608%, 11/16/07 35 35
Navistar International 144A
6.250%, 03/01/12 30 30
Neenah Paper 144A
7.375%, 11/15/14 38 37
PNC Funding
4.200%, 03/10/08 45 45
Prudential Financial MTN
3.750%, 05/01/08 10 10
Prudential Financial, Ser B MTN
5.100%, 09/20/14 30 30
PSE&G Power
6.950%, 06/01/12 70 78
PXRE
8.850%, 02/15/27 25 33
Quality Distributors
9.000%, 11/15/10 30 28
Qwest
9.125%, 03/15/12 50 55
Reed Elsevier Capital
6.125%, 08/01/06 60 61
Rogers Cable
6.750%, 03/15/15 20 21
Rogers Wireless
8.000%, 12/15/12 20 22
Schering-Plough
6.750%, 12/01/33 40 47
SLM, Ser A MTN
4.500%, 07/26/10 50 49
3.950%, 08/15/08 35 34
Solo Cup
8.500%, 02/15/14 36 34
Southern Company Capital Funding, Ser A
5.300%, 02/01/07 15 15
- -------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
CORPORATE BONDS -- CONTINUED
Sprint Capital
6.000%, 01/15/07 $ 45 $ 46
Stater Brothers Holdings
8.125%, 06/15/12 35 35
STATS ChipPAC
6.750%, 11/15/11 20 19
Texas Industries 144A
7.250%, 07/15/13 50 53
TFM 144A
9.375%, 05/01/12 25 27
Time Warner
7.625%, 04/15/31 30 37
Town Sports International
9.625%, 04/15/11 20 21
Toys R Us
7.875%, 04/15/13 30 27
Universal City Florida
7.960%, 05/01/10 20 21
Univision Communications
3.875%, 10/15/08 45 43
Uno Restaurant 144A
10.000%, 02/15/11 25 24
Verizon Wireless Capital
5.375%, 12/15/06 55 56
Washington Mutual Financial
6.875%, 05/15/11 35 39
WCI Communities
10.625%, 02/15/11 30 32
Wellpoint
5.000%, 12/15/14 30 30
3.750%, 12/14/07 30 29
Weyerhaeuser
5.950%, 11/01/08 30 31
Wyeth
5.500%, 02/01/14 45 47
Xcel Energy
7.000%, 12/01/10 50 55
XL Capital
5.250%, 09/15/14 40 40
--------------
TOTAL CORPORATE BONDS (COST $3,469) 3,469
--------------
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS -- 19.7%
Federal Home Loan Mortgage Corporation
6.000%, 08/01/29 32 33
6.000%, 03/01/33 130 133
6.000%, 10/01/34 116 118
5.500%, 09/01/17 32 33
5.500%, 09/01/19 47 47
5.500%, 10/01/34 89 89
5.500%, 01/01/35 188 189
5.500%, 02/01/35 196 197
5.500%, 03/01/35 72 73
5.500%, 06/01/35 353 355
5.000%, 07/01/19 150 150
5.000%, 05/01/20 406 408
- -------------------------------------------------------------
14
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Face Amount Market
Description (000)/Shares Value (000)
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS -- CONTINUED
Federal National Mortgage Association
6.500%, 03/01/35 $194 $ 201
6.000%, 09/01/34 197 202
6.000%, 12/01/34 155 158
6.000%, 12/01/34 102 105
5.500%, 03/01/20 93 95
5.500%, 07/01/33 429 431
5.500%, 10/01/34 26 26
5.500%, 06/01/35 358 360
5.000%, 10/01/19 47 47
Federal National Mortgage Association TBA
5.000%, 08/01/34 200 197
Government National Mortgage Association
6.000%, 11/15/33 121 124
6.000%, 12/15/34 21 21
5.500%, 01/20/35 95 96
--------------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS (COST $3,917) 3,888
--------------
- -------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 9.8%
U.S. Treasury Bond
7.500%, 11/15/16 100 128
5.375%, 02/15/31 170 193
U.S. Treasury Note
5.750%, 08/15/10 330 354
4.125%, 05/15/15 620 612
3.375%, 09/15/09 575 559
3.375%, 02/15/08 100 98
--------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $1,954) 1,944
--------------
- -------------------------------------------------------------
FOREIGN COMMON STOCK -- 6.4%
AUSTRALIA -- 0.6%
Australia & New Zealand Banking Group 1,000 16
Babcock & Brown* 400 5
BHP Billiton 1,799 26
Commonwealth Bank of Australia 150 4
Insurance Australia Group 3,800 18
QBE Insurance Group 650 8
Rinker Group 1,500 17
Suncorp-Metway 1,000 16
Telstra 1,700 7
Woolworths 200 3
Zinifex* 2,200 5
--------------
TOTAL AUSTRALIA 125
--------------
- -------------------------------------------------------------
AUSTRIA -- 0.1%
Andritz 100 10
Telekom Austria* 200 4
--------------
TOTAL AUSTRIA 14
--------------
- -------------------------------------------------------------
BELGIUM -- 0.1%
Dexia* 625 14
Fortis 200 6
--------------
TOTAL BELGIUM 20
--------------
- -------------------------------------------------------------
CANADA -- 0.2%
Canadian Natural Resource 200 8
Dofasco 35 1
EnCana 200 8
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
CANADA -- CONTINUED
Gerdau Ameristeel 300 $ 2
IPSCO 90 5
Metro, Cl A 100 3
Nova Chemicals Incorporated 100 4
PetroKazakhstan, Cl A 100 4
TELUS 100 3
--------------
TOTAL CANADA 38
--------------
- -------------------------------------------------------------
DENMARK -- 0.1%
Auriga Industries, Cl B 200 6
Jyske Bank* 400 19
--------------
TOTAL DENMARK 25
--------------
- -------------------------------------------------------------
FINLAND -- 0.1%
Nokia 550 9
Rautaruukki 400 7
--------------
TOTAL FINLAND 16
--------------
- -------------------------------------------------------------
FRANCE -- 0.4%
BNP Paribas 200 15
France Telecom* 100 3
Societe Generale 290 32
Total 44 11
Ubisoft Entertainment* 185 10
--------------
TOTAL FRANCE 71
--------------
- -------------------------------------------------------------
GERMANY -- 0.4%
Allianz 45 6
BASF 104 7
Continental 190 15
E.ON 276 26
Freenet.de* 54 1
Mobilcom 282 7
Muenchener Rueckversicherungs 85 10
Schering 158 10
--------------
TOTAL GERMANY 82
--------------
- -------------------------------------------------------------
GREECE -- 0.0%
Intracom 200 1
--------------
TOTAL GREECE 1
--------------
- -------------------------------------------------------------
HONG KONG -- 0.0%
Vtech Holdings 4,000 11
--------------
TOTAL HONG KONG 11
--------------
- -------------------------------------------------------------
ITALY -- 0.3%
Banca Intesa 2,500 12
ENI 1,500 43
--------------
TOTAL ITALY 55
--------------
- -------------------------------------------------------------
JAPAN -- 1.7%
Bosch Auto Systems 1,015 6
Canon 600 30
Chubu Electric Power 1,500 36
Eizo Nanao 200 7
en-japan 1 5
Fujitsu Frontech 200 2
Glory 1,300 21
Honda Motor 700 36
- -------------------------------------------------------------
15
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
JAPAN -- CONTINUED
Kawasaki Kisen Kaisha 2,600 $ 16
Komatsu 2,000 19
Marubeni 4,000 15
Mitsubishi 500 7
Mitsui OSK Lines 3,800 24
Mizohu Financial 6 27
Nippon Steel 700 2
Nippon Yusen KK 2,000 12
Nissin Kogyo 100 4
Ricoh Leasing 100 2
Santen Pharmaceutical 250 6
Tokyo Steel Manufacturing 100 1
Toyota Tsusho 1,000 16
Yamaha Motor 1,800 34
--------------
TOTAL JAPAN 328
--------------
- -------------------------------------------------------------
NETHERLANDS -- 0.1%
Boskalis Westminster 102 4
ING Groep 480 14
Royal KPN 300 3
TNT 300 8
--------------
TOTAL NETHERLANDS 29
--------------
- -------------------------------------------------------------
NEW ZEALAND -- 0.2%
Fletcher Building 5,885 29
Telecom Corporation of New Zealand 3,140 14
--------------
TOTAL NEW ZEALAND 43
--------------
- -------------------------------------------------------------
NORWAY -- 0.1%
Statoil 900 19
--------------
TOTAL NORWAY 19
--------------
- -------------------------------------------------------------
PORTUGAL -- 0.0%
Banco Comercial Portugues* 2,000 5
--------------
TOTAL PORTUGAL 5
--------------
- -------------------------------------------------------------
SPAIN -- 0.3%
Banco Bilbao Vizcaya Argentaria 950 16
Banco Santander Central Hispano 2,007 25
Gestevision Telecinco 500 12
Telefonica 312 5
--------------
TOTAL SPAIN 58
--------------
- -------------------------------------------------------------
SWEDEN -- 0.1%
TeliaSonera 2,400 12
--------------
TOTAL SWEDEN 12
--------------
- -------------------------------------------------------------
SWITZERLAND -- 0.3%
Credit Suisse Group 640 27
Syngenta 50 5
UBS 60 5
Xstrata* 800 17
Zurich Financial 80 14
--------------
TOTAL SWITZERLAND 68
--------------
- -------------------------------------------------------------
UNITED KINGDOM -- 1.3%
Alliance Unichem 640 9
Antofagasta 229 5
Ashtead* 7,906 15
- -------------------------------------------------------------
Shares/Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
UNITED KINGDOM -- CONTINUED
AstraZeneca 400 $ 18
Barclays 900 9
British American Tobacco 200 4
Corus Group* 8,300 7
Gallaher Group 169 3
HBOS 1,330 20
HSBC Holdings 600 10
International Power 2,100 8
Lloyds TSB Group 200 2
Next 153 4
O2 5,445 13
Rio Tinto 200 7
Royal Bank of Scotland 815 24
Royal Dutch Shell, Cl A* 400 12
Royal Dutch Shell, Cl B* 948 30
SABMiller 800 14
Shire Pharmaceuticals 400 5
Standard Chartered 400 8
Tesco 1,600 9
Vodafone Group 2,100 5
--------------
TOTAL UNITED KINGDOM 241
--------------
TOTAL FOREIGN COMMON STOCK (COST $1,184) 1,261
--------------
- -------------------------------------------------------------
FOREIGN BONDS -- 3.8%
European Investment Bank (JPY)
1.400%, 06/20/17 7,000 62
Netherlands Government (EUR)
4.250%, 07/15/13 466 611
U.K. Treasury Bond (GBP)
4.250%, 03/07/36 50 87
--------------
TOTAL FOREIGN BONDS (COST $784) 760
--------------
- -------------------------------------------------------------
ASSET-BACKED SECURITIES -- 1.7%
HOME EQUITY LOANS -- 1.7%
Citigroup Commercial Mortgage,
Ser 2004-C2, Cl A3
4.380%, 10/15/41 $65 64
GE Capital Commercial Mortgage,
Ser 2004-C3, Cl A3(B)
4.865%, 07/10/39 45 45
JP Morgan Chase CMO,
Ser 2005-lDP1, Cl A2
4.625%, 03/15/46 85 85
JP Morgan Chase Commercial Mortgage,
Ser 2004-CBX, Cl A4
4.529%, 01/12/37 55 54
Residential Asset Mortgage Program,
Ser 2004-RS12, Cl AI2
3.767%, 02/25/27 25 25
Wachovia Bank Commercial Mortgage Trust,
Ser 2003-c5, Cl A2
3.989%, 06/15/35 70 66
--------------
339
--------------
TOTAL ASSET-BACKED SECURITIES (COST $343) 339
--------------
- -------------------------------------------------------------
16
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Face Amount Market
Description (000)/Shares Value (000)
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 0.7%
Federal Home Loan Mortgage Corporation
5.875%, 03/21/11 $ 60 $ 64
Federal National Mortgage Association
5.125%, 01/02/14 65 66
--------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (COST $132) 130
--------------
- -------------------------------------------------------------
INVESTMENT COMPANY -- 0.1%
INDEX FUND-SMALL CAP -- 0.1%
SPDR, Trust Ser 1 150 19
--------------
TOTAL INVESTMENT COMPANY (COST $18) 19
--------------
- -------------------------------------------------------------
FOREIGN PREFERRED STOCK -- 0.0%
GERMANY -- 0.0%
Porsche* 4 3
--------------
TOTAL FOREIGN PREFERRED STOCK (COST $3) 3
--------------
- -------------------------------------------------------------
MORTGAGE RELATED -- 0.7%
Banc of America CMO,
Ser 2003-2, Cl A2
4.342%, 03/11/41 $ 20 20
Countrywide Home Loans CMO,
Ser 2004-18, Cl A1
6.000%, 10/25/34 90 91
TXU Electric Delivery Transition ABS,
Ser 2004-1, Cl A2
4.810%, 11/17/14 30 30
--------------
TOTAL MORTGAGE RELATED (COST $141) 141
--------------
- -------------------------------------------------------------
REPURCHASE AGREEMENT -- 17.0%
Deutsche Bank 3.29%, dated 07/29/05,
to be repurchased on 08/01/05,
repurchase price $3,371,744
(collateralized by a U.S.
Government obligation, par value
$3,439,000, 3.125%, 11/30/09;
total market value $3,438,352)(A) $3,371 3,371
--------------
TOTAL REPURCHASE AGREEMENT (COST $3,371) 3,371
--------------
TOTAL INVESTMENTS -- 101.4% (COST $19,634) 20,08
--------------
- -------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (1.4%)
Foreign Currency (Cost $252) $ 252
Receivable for Fund Shares Sold 117
Payable for Investment Advisory Fees (21)
Payable for Administration Fees (2)
Payable for Distribution Fees (8)
Payable for Insurance Expense to Affiliates (48)
Payable for Investment Securities Purchased (781)
Other Assets and Liabilities, Net 201
--------------
TOTAL OTHER ASSETS AND LIABILITIES (290)
--------------
NET ASSETS -- 100.0% $ 19,791
==============
- -------------------------------------------------------------
Description Value (000)
- -------------------------------------------------------------
NET ASSETS:
Paid-in-capital ($0.001 par value) $ 19,273
Undistributed net investment income 8
Accumulated net realized gain on investments 71
Unrealized appreciation on investments 447
Unrealized depreciation on forward foreign
currency contracts (8)
--------------
NET ASSETS $ 19,791
==============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS
($5,193,345 / 492,787 SHARES) $10.54
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A
($6,683,856 / 634,840 SHARES) $10.53
======
MAXIMUM OFFERING
PRICE PER SHARE -- CLASS A
($10.53/94.25%) $11.17
======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS C+
($7,913,568 / 753,651 SHARES) $10.50
======
* Non-income producing security.
+ Class C shares have a contingent deferred sales charge. For a description of a
possible sales charge, please see the Portfolio's prospectus.
144A -- Security sold within the terms of a private placement memorandum, which
is exempt from registration under Section 3A-4, 4(2) or 144A of the
Securities Act of 1933, as amended, and may be sold only to dealers in
that program or other accredited investors. On July 31, 2005, the value
of these securities amounted to $437,000, representing 2.2% of the net
assets of the Portfolio.
(A) -- Tri-party repurchase agreement
(B) -- Variable rate security - the rate reported is the rate as of July 31,
2005.
ABS -- Asset-Backed Security
ADR -- American Depositary Receipt
Cl -- Class
CMO -- Collateralized Mortgage Obligation
EUR -- Euro
GBP -- British Pound
JPY -- Japanese Yen
MTN -- Medium Term Note
REITs -- Real Estate Investment Trust
Ser -- Series
SPDR -- Standard & Poor's 500 Composite Index Depository Receipt
TBA -- Security traded under delayed delivery commitments settling after
July 31, 2005. Income on this security will not be earned until
settlement date.
Cost figures are shown with "000's" omitted.
The accompanying notes are an integral part of the financial statements.
17
OLD MUTUAL ADVISOR FUNDS
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
PORTFOLIO PROFILE
For the 10-month period ended July 31, 2005, the Old Mutual Asset Allocation
Balanced Portfolio (Institutional Class) gained 11.15% at net asset value. By
comparison, the Portfolio's benchmarks, the S&P 500 and the Lehman Brothers U.S.
Aggregate Bond Index, gained 12.37% and 2.56% for the same period, respectively.
Performance for all share classes is included on the following page.
FACTORS CONTRIBUTING TO PORTFOLIO PERFORMANCE
The Portfolio's tilt toward large-cap equity securities and its ability to
capture solid upside from both domestic and foreign equity holdings contributed
to its performance during the period. Domestic large-cap value holdings were the
top contributors to overall returns. Specific large-cap value stocks that
enhanced Portfolio performance included securities in the Energy sector such as
ConocoPhillips, Valero Energy and Occidental Petroleum. The large-cap growth
category also contributed to overall gains, aided by holdings such as TXU (an
Energy company) and Altria Group (parent company of numerous consumer packaged
goods companies). The Portfolio's holdings in developed foreign markets also
contributed positively to performance, most notably securities from the United
Kingdom and Germany. However, issuers such as telecommunications company
TeliaSonera (Sweden) and Glory, Ltd. (Japan), a money handling company,
detracted from returns and were sold from the Portfolio.
The Portfolio's position in real estate securities, including Simon Property,
Boston Properties and Host Marriott, were also positive contributors. We believe
that rising interest rates will result in a downward adjustment in the housing
and real estate market and the Portfolio's target allocation to real estate
securities was reduced in March. We continue to underweight the category
relative to the benchmarks.
The Portfolio's fixed-income positions had a relatively neutral effect on
returns during the period as a result of weakness in the fixed-income markets.
Underlying this weakness were external factors ranging from the Federal
Reserve's continued move to a less accommodating monetary policy, as well as
inflation fears and slowing economic growth, both of which were related to the
rising cost of oil.
MARKET FACTORS AND ENVIRONMENT
The financial markets posted generally positive results during the period in
spite of mixed economic news. For example, equity markets generally showed
resilience during the period and were able to post gains, despite record oil
prices, rising interest rates, and ongoing concerns about the health of the
economy.
At the end of the second quarter the Federal Reserve raised interest rates for
the ninth straight time, increasing the Federal Funds rate by 0.25% to 3.25%.
The Federal Reserve reasserted its intentions of increasing interest rates at a
"measured" pace and commented that "although energy prices have risen further,
the expansion remains firm and labor market conditions continue to improve
gradually."
INVESTMENT OUTLOOK
As the economy and earnings growth stabilize and interest rates increase, value
stocks are expected to perform better than growth stocks in the short-term.
However, value has outperformed growth stocks over the past five years. This has
driven current relative market valuation towards favoring growth stocks.
Although we continue to overweight value stocks, we are keeping a close watch on
growth versus value indicators. If the economy continues to grow at a strong
rate, we expect to decrease our weighting of value stocks.
Rising short-term interest rates and inflationary pressures will eventually
result in increasing yields for long-term bonds. As a result, we continue to
overweight short-term fixed income and underweight long-term bonds.
18
OLD MUTUAL ADVISOR FUNDS
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
ASSET CLASS WEIGHTINGS AS OF JULY 31, 2005
[Pie chart omitted -- plot points are as follows:]
Common Stock 47%
Repurchase Agreement 13%
Foreign Common Stock 11%
Corporate Bonds 10%
Residential Mortgages-Agency 10%
U.S. Treasury Obligations 6%
Foreign Bonds 2%
Asset-Backed Securities 1%
% of Total Portfolio Investments
TOTAL RETURN AS OF JULY 31, 2005
Since
Inception*
- --------------------------------------------------------------------------------
InstitutionalClass 11.15%
- --------------------------------------------------------------------------------
Class A with front-end load 4.45%
- --------------------------------------------------------------------------------
Class A without load 10.83%
- --------------------------------------------------------------------------------
Class C with deferred sales load 9.31%
- --------------------------------------------------------------------------------
Class C without deferred sales load 10.31%
- --------------------------------------------------------------------------------
S&P 500 Index 12.37%
- --------------------------------------------------------------------------------
Lehman Brothers U.S. Aggregate Bond Index 2.56%
- --------------------------------------------------------------------------------
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indices can be found on page 2.
* Not annualized, inception date 9/30/04
PORTFOLIO PERFORMANCE
[Line chart omitted -- plot points are as follows:]
Old Mutual
Old Mutual Old Mutual Asset
Asset Asset Allocation
Allocation Allocation Balanced Lehman
Balanced Balanced Portfolio, Brothers
Portfolio, Portfolio, Institutional S&P 500 U.S. Aggregate
Class A Class C Class Index Index
- ---------------------------------------------------------------------------------------------------------------------------
9/30/2004 $ 9425 $10000 $10000 $10000 $10000
10/31/2004 9491 10060 10070 10153 10084
11/30/2004 9812 10400 10420 10564 10003
12/31/2004 10056 10662 10682 10923 10095
1/31/2005 9914 10502 10531 10657 10159
2/28/2005 10122 10723 10751 10881 10099
3/31/2005 9997 10580 10621 10688 10048
4/30/2005 9846 10410 10471 10485 10183
5/31/2005 10054 10630 10691 10818 10293
6/30/2005 10201 10781 10853 10834 10350
7/31/2005 10445 10931 11115 11237 10256
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The graph above compares
an investment made in each of the Portfolio's Class shares on the inception date
of 9/30/04 to an investment made in unmanaged securities indices on that date.
The performance of the Portfolio's Class A shares shown in the line graph takes
into account the maximum initial sales charge. Performance for the Portfolio's
Class C shares assumes the payment of a contingent deferred sales load, which is
charged on investments held less than one year. The Portfolio's performance in
this chart and the performance table assumes reinvestment of dividends and
capital gain distributions but does not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or on the redemption of
Portfolio shares.
19
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
COMMON STOCK -- 46.9%
BASIC MATERIALS -- 1.7%
AGRICULTURAL CHEMICALS -- 0.2%
Agrium 3,700 $ 85
Potash Corporation of Saskatchewan 230 24
--------------
109
- -------------------------------------------------------------
BUILDING & CONSTRUCTION PRODUCTS-MISCELLANEOUS -- 0.0%
USG* 250 12
--------------
12
- -------------------------------------------------------------
CHEMICALS-DIVERSIFIED -- 0.5%
Dow Chemical 1,939 93
Lyondell Chemical 3,085 86
Nova Chemicals 1,450 51
Olin 3,455 63
--------------
293
- -------------------------------------------------------------
CHEMICALS-PLASTICS -- 0.0%
Spartech 1,370 26
--------------
26
- -------------------------------------------------------------
CHEMICALS-SPECIALTY -- 0.1%
Eastman Chemical 207 11
Hercules* 1,400 20
--------------
31
- -------------------------------------------------------------
COAL -- 0.1%
Peabody Energy 500 33
--------------
33
- -------------------------------------------------------------
CONTAINERS-METAL/GLASS -- 0.0%
Crown Holdings* 750 12
--------------
12
- -------------------------------------------------------------
DIVERSIFIED MINERALS -- 0.1%
Cia Vale do Rio Doce ADR 1,200 39
--------------
39
- -------------------------------------------------------------
INDUSTRIAL GASES -- 0.1%
Air Products & Chemicals 205 13
Airgas 550 16
Praxair 490 24
--------------
53
- -------------------------------------------------------------
METAL-COPPER -- 0.1%
Phelps Dodge 660 70
--------------
70
- -------------------------------------------------------------
PAPER & RELATED PRODUCTS -- 0.2%
Domtar 620 4
Neenah Paper 1,810 60
Schweitzer-Mauduit International 300 8
Smurfit-Stone Container* 1,750 21
--------------
93
- -------------------------------------------------------------
PETROCHEMICALS -- 0.1%
Reliance GDR 144A 1,700 55
--------------
55
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
STEEL-PRODUCERS -- 0.2%
Nucor 1,150 $ 64
POSCO 600 30
Schnitzer Steel, Cl A 250 7
--------------
101
--------------
TOTAL BASIC MATERIALS (COST $863) 927
--------------
- -------------------------------------------------------------
CONSUMER CYCLICAL -- 6.1%
APPAREL MANUFACTURERS -- 0.3%
Carter's* 510 31
Coach* 1,080 38
Polo Ralph Lauren 1,010 50
VF 259 15
--------------
134
- -------------------------------------------------------------
ATHLETIC FOOTWEAR -- 0.1%
Nike, Cl B 410 34
--------------
34
- -------------------------------------------------------------
AUDIO/VIDEO PRODUCTS -- 0.0%
Dolby Laboratories, Cl A* 700 13
--------------
13
- -------------------------------------------------------------
AUTO-CARS/LIGHT TRUCKS -- 0.1%
Tata Motors ADR 4,900 56
--------------
56
- -------------------------------------------------------------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 0.0%
BorgWarner 380 22
--------------
22
- -------------------------------------------------------------
BROADCAST SERVICES/PROGRAMMING -- 0.1%
Citadel Broadcasting* 910 11
Liberty Global, Cl A* 402 19
Nexstar Broadcasting Group, Cl A* 6,325 36
--------------
66
- -------------------------------------------------------------
BUILDING-RESIDENTIAL/COMMERCIAL -- 0.4%
DR Horton 1,900 78
KB Home 1,027 84
Pulte Homes 390 37
--------------
199
- -------------------------------------------------------------
CABLE TV -- 0.3%
Insight Communications, Cl A* 3,230 38
Mediacom Communications, Cl A* 18,930 132
--------------
170
- -------------------------------------------------------------
CASINO SERVICES -- 0.3%
Harrah's Entertainment 900 71
International Game Technology 1,220 33
Scientific Games, Cl A* 1,710 47
--------------
151
- -------------------------------------------------------------
CRUISE LINES -- 0.4%
Carnival 3,248 170
Royal Caribbean Cruises 460 21
--------------
191
- -------------------------------------------------------------
20
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
DISTRIBUTION/WHOLESALE -- 0.1%
CDW 335 $ 21
Nuco2* 200 5
--------------
26
- -------------------------------------------------------------
ENTERTAINMENT SOFTWARE -- 0.3%
Activision* 5,096 104
Electronic Arts* 490 28
THQ* 450 16
--------------
148
- -------------------------------------------------------------
FOOD-RETAIL -- 0.1%
Cia Brasileira de Distribuicao Grupo
Pao de Acucar ADR 1,100 24
--------------
24
- -------------------------------------------------------------
GAMBLING (NON-HOTEL) -- 0.0%
Isle of Capri Casinos* 350 10
--------------
10
- -------------------------------------------------------------
GOLF -- 0.0%
Callaway Golf 525 8
--------------
8
- -------------------------------------------------------------
HOTELS & MOTELS -- 0.3%
Fairmont Hotels & Resorts 375 12
Jameson Inns* 21,165 50
Lodgian* 2,895 30
Marriott International, Cl A 440 30
Orient Express Hotels, Cl A 118 4
Starwood Hotels & Resorts Worldwide 886 56
--------------
182
- -------------------------------------------------------------
MOTORCYCLE/MOTOR SCOOTER -- 0.1%
Harley-Davidson 420 22
--------------
22
- -------------------------------------------------------------
MULTIMEDIA -- 0.3%
Entravision Communications, Cl A* 6,270 54
EW Scripps, Cl A 580 29
Walt Disney 3,554 91
--------------
174
- -------------------------------------------------------------
PUBLISHING-BOOKS -- 0.1%
Scholastic* 1,485 55
--------------
55
- -------------------------------------------------------------
PUBLISHING-NEWSPAPERS -- 0.2%
Gannett 987 72
Journal Register* 2,845 53
--------------
125
- -------------------------------------------------------------
PUBLISHING-PERIODICALS -- 0.1%
Reader's Digest 4,735 77
--------------
77
- -------------------------------------------------------------
RADIO -- 0.4%
Cumulus Media, Cl A* 3,330 42
Emmis Communications, Cl A* 1,875 39
Radio One, Cl A* 3,630 48
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
RADIO -- CONTINUED
Radio One, Cl D* 2,225 $ 29
Spanish Broadcasting System, Cl A* 5,085 44
Westwood One* 450 9
--------------
211
- -------------------------------------------------------------
RETAIL-APPAREL/SHOE -- 0.2%
Charming Shoppes* 1,600 19
Childrens Place Retail Stores* 400 18
JoS A Bank Clothiers* 400 18
Ross Stores 730 19
Urban Outfitters* 220 14
--------------
88
- -------------------------------------------------------------
RETAIL-ARTS & CRAFTS -- 0.1%
Michaels Stores 1,400 57
--------------
57
- -------------------------------------------------------------
RETAIL-BEDDING -- 0.0%
Bed Bath & Beyond* 410 19
--------------
19
- -------------------------------------------------------------
RETAIL-BUILDING PRODUCTS -- 0.2%
Home Depot 712 31
Lowe's 1,220 81
--------------
112
- -------------------------------------------------------------
RETAIL-DISCOUNT -- 0.2%
Costco Wholesale 205 10
Dollar General 2,961 60
Target 390 23
--------------
93
- -------------------------------------------------------------
RETAIL-DRUG STORE -- 0.1%
CVS 1,300 40
Walgreen 540 26
--------------
66
- -------------------------------------------------------------
RETAIL-HYPERMARKETS -- 0.1%
Wal-Mart de Mexico ADR, Cl V 1,600 71
--------------
71
- -------------------------------------------------------------
RETAIL-JEWELRY -- 0.0%
Tiffany 470 16
--------------
16
- -------------------------------------------------------------
RETAIL-MAJOR DEPARTMENT STORE -- 0.2%
JC Penney Holding 2,288 128
--------------
128
- -------------------------------------------------------------
RETAIL-OFFICE SUPPLIES -- 0.1%
OfficeMax 585 17
Staples 1,605 37
--------------
54
- -------------------------------------------------------------
RETAIL-PAWN SHOPS -- 0.0%
Cash America International 500 11
Ezcorp, Cl A* 550 9
--------------
20
- -------------------------------------------------------------
21
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
RETAIL-PET FOOD & SUPPLIES -- 0.0%
Petco Animal Supplies* 580 $ 16
--------------
16
- -------------------------------------------------------------
RETAIL-PETROLEUM PRODUCTS -- 0.0%
World Fuel Services 800 20
--------------
20
- -------------------------------------------------------------
RETAIL-REGIONAL DEPARTMENT STORE -- 0.1%
Kohl's* 610 34
--------------
34
- -------------------------------------------------------------
RETAIL-RESTAURANTS -- 0.3%
Darden Restaurants 1,304 45
Lone Star Steakhouse & Saloon 440 13
O'Charleys* 450 8
PF Chang's China Bistro* 290 17
Starbucks* 310 16
Wendy's International 1,135 59
--------------
158
- -------------------------------------------------------------
RETAIL-VIDEO RENTAL -- 0.1%
Blockbuster, Cl A 6,595 57
Movie Gallery 650 16
--------------
73
- -------------------------------------------------------------
TELEVISION -- 0.2%
Sinclair Broadcast Group, Cl A 10,795 97
Univision Communications, Cl A* 425 12
--------------
109
- -------------------------------------------------------------
THEATERS -- 0.0%
Carmike Cinemas 200 6
--------------
6
- -------------------------------------------------------------
TOYS -- 0.2%
Mattel 5,536 103
--------------
103
--------------
TOTAL CONSUMER CYCLICAL (COST $3,080) 3,341
--------------
- -------------------------------------------------------------
CONSUMER NON-CYCLICAL -- 2.7%
AGRICULTURAL OPERATIONS -- 0.3%
Delta & Pine Land 1,525 41
Monsanto 510 34
Tejon Ranch* 1,145 70
--------------
145
- -------------------------------------------------------------
BEVERAGES-NON-ALCOHOLIC -- 0.1%
PepsiCo 430 24
--------------
24
- -------------------------------------------------------------
BREWERY -- 0.3%
Grupo Modelo ADR, Cl C 1,200 40
Molson Coors Brewing, Cl B 900 56
Quilmes ADR 2,200 68
--------------
164
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
CONSUMER PRODUCTS-MISCELLANEOUS -- 0.1%
Helen of Troy* 2,020 $ 47
--------------
47
- -------------------------------------------------------------
COSMETICS & TOILETRIES -- 0.1%
Gillette 285 15
Procter & Gamble 931 52
--------------
67
- -------------------------------------------------------------
FOOD-DAIRY PRODUCTS -- 0.2%
Dean Foods* 3,426 122
--------------
122
- -------------------------------------------------------------
FOOD-FLOUR & GRAIN -- 0.1%
Archer-Daniels-Midland 2,734 63
--------------
63
- -------------------------------------------------------------
FOOD-MEAT PRODUCTS -- 0.1%
Smithfield Foods* 2,850 74
--------------
74
- -------------------------------------------------------------
FOOD-MISCELLANEOUS/DIVERSIFIED -- 0.1%
ConAgra Foods 3,008 68
--------------
68
- -------------------------------------------------------------
FOOD-RETAIL -- 0.1%
Whole Foods Market 170 23
--------------
23
- -------------------------------------------------------------
OFFICE SUPPLIES & FORMS -- 0.0%
Avery Dennison 205 12
--------------
12
- -------------------------------------------------------------
POULTRY -- 0.1%
Pilgrim's Pride 1,450 55
Sanderson Farms 350 15
--------------
70
- -------------------------------------------------------------
TOBACCO -- 1.1%
Altria Group 4,455 298
Imperial Tobacco Group ADR 3,009 157
UST 3,384 156
--------------
611
--------------
TOTAL CONSUMER NON-CYCLICAL (COST $1,446) 1,490
--------------
- -------------------------------------------------------------
ENERGY -- 5.0%
COAL -- 0.2%
Arch Coal 150 8
Consol Energy 1,450 98
--------------
106
- -------------------------------------------------------------
OIL & GAS DRILLING -- 0.6%
Atwood Oceanics* 420 29
ENSCO International 520 21
GlobalSantaFe 235 11
Nabors* 1,850 121
Precision Drilling* 1,100 46
- -------------------------------------------------------------
22
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
OIL & GAS DRILLING -- CONTINUED
Pride International* 2,740 $ 71
Rowan* 480 17
Todco, Cl A* 370 11
Transocean* 320 18
--------------
345
- -------------------------------------------------------------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 0.5%
Berry Petroleum, Cl A 350 20
Houston Exploration* 200 12
Meridian Resource* 4,375 22
Newfield Exploration* 1,700 72
Noble Energy 10 1
NovaTek GDR 144A* 800 16
Penn Virginia 300 16
Pogo Producing 75 4
PTT Exploration and
Production ADR 1,200 25
Stone Energy* 755 40
Ultra Petroleum* 570 22
Unit* 250 12
Unocal 65 4
--------------
266
- -------------------------------------------------------------
OIL COMPANIES-INTEGRATED -- 2.5%
BP ADR 2,914 192
Chevron 2,703 157
China Petroleum & Chemical ADR 1,100 48
ConocoPhillips 4,102 257
Exxon Mobil 4,249 250
LUKOIL ADR 1,400 58
Marathon Oil 1,175 68
Occidental Petroleum 3,709 305
Petroleo Brasileiro ADR 900 47
--------------
1,382
- -------------------------------------------------------------
OIL FIELD MACHINERY & EQUIPMENT -- 0.2%
Cooper Cameron* 900 64
Maverick Tube* 350 12
National Oilwell Varco* 620 32
Smith International 450 30
--------------
138
- -------------------------------------------------------------
OIL-FIELD SERVICES -- 0.4%
BJ Services 580 35
Cal Dive International* 545 32
Core Laboratories* 1,155 37
Schlumberger 340 29
Tidewater 220 9
W-H Energy Services* 1,495 47
Weatherford International* 75 5
--------------
194
- -------------------------------------------------------------
OIL REFINING & MARKETING -- 0.2%
Giant* 350 14
Tesoro* 350 17
Valero Energy 900 74
--------------
105
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
PIPELINES -- 0.4%
China Gas Holdings ADR* 400 $ 34
El Paso 1,400 17
National Fuel Gas 2,050 62
Questar 1,450 102
Williams 700 15
--------------
230
--------------
TOTAL ENERGY (COST $2,379) 2,766
--------------
- -------------------------------------------------------------
FINANCIAL -- 10.3%
COMMERCIAL BANKS NON-US -- 0.2%
ABSA Group ADR 600 17
Bank Hapoalim GDR 2,000 34
Kookmin Bank ADR 600 31
--------------
82
- -------------------------------------------------------------
COMMERCIAL BANKS-CENTRAL US -- 0.0%
Texas Regional Bancshares, Cl A 250 8
Wintrust Financial 250 13
--------------
21
- -------------------------------------------------------------
COMMERCIAL BANKS-EASTERN US -- 0.1%
Commerce Bancorp 1,345 46
Signature Bank* 1,035 31
--------------
77
- -------------------------------------------------------------
COMMERCIAL BANKS-SOUTHERN US -- 0.2%
Colonial BancGroup 3,400 79
Oriental Financial Group 630 10
--------------
89
- -------------------------------------------------------------
COMMERCIAL BANKS-WESTERN US -- 0.1%
CVB Financial 550 12
Hanmi Financial 650 12
UCBH Holdings 1,410 26
--------------
50
- -------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES -- 0.0%
E. Sun Financial Holdings GDR* 1,100 22
--------------
22
- -------------------------------------------------------------
FINANCE-CONSUMER LOANS -- 0.6%
Asta Funding 400 10
Collegiate Funding Services LLC* 6,590 98
Portfolio Recovery Associates* 800 34
SLM 3,898 201
World Acceptance* 400 11
--------------
354
- -------------------------------------------------------------
FINANCE-CREDIT CARD -- 0.6%
Capital One Financial 520 43
MBNA 7,230 182
Metris* 970 14
Providian Financial* 4,638 88
--------------
327
- -------------------------------------------------------------
23
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
FINANCE-INVESTMENT BANKER/BROKER -- 0.6%
Bear Stearns 812 $ 83
Citigroup 4,239 185
GFI Group* 320 11
Goldman Sachs Group 660 71
Lehman Brothers Holdings 40 4
--------------
354
- -------------------------------------------------------------
FINANCE-MORTGAGE LOAN/BANKER -- 0.2%
Countrywide Financial 2,543 92
--------------
92
- -------------------------------------------------------------
FINANCE-OTHER SERVICES -- 0.2%
Asset Acceptance Capital* 2,240 61
MarketAxess Holdings* 4,905 54
--------------
115
- -------------------------------------------------------------
FINANCIAL GUARANTEE INSURANCE -- 0.2%
MGIC Investment 1,593 109
--------------
109
- -------------------------------------------------------------
INSURANCE BROKERS -- 0.2%
Brown & Brown 1,400 61
Hilb Rogal & Hobbs 400 13
USI Holdings* 4,505 58
--------------
132
- -------------------------------------------------------------
INVESTMENT MANAGEMENT/ADVISORY SERVICES -- 0.1%
Affiliated Managers Group* 680 49
Federated Investors, Cl B 450 14
--------------
63
- -------------------------------------------------------------
LIFE/HEALTH INSURANCE -- 0.7%
Ceres Group* 850 5
China Life Insurance ADR* 1,100 33
Cigna 2,437 260
KMG America* 6,640 65
UnumProvident 1,335 26
--------------
389
- -------------------------------------------------------------
MULTI-LINE INSURANCE -- 1.3%
ACE 357 16
Allmerica Financial* 925 36
Allstate 3,102 190
American International Group 220 13
Assurant 125 5
Hartford Financial Services Group 1,614 130
Metlife 2,272 112
XL Capital, Cl A 2,990 215
--------------
717
- -------------------------------------------------------------
PROPERTY/CASUALTY INSURANCE -- 0.4%
EMC Insurance Group 2,065 39
Fidelity National Financial 260 10
FPIC Insurance Group* 300 10
Philadelphia Consolidated Holding* 200 16
PMA Capital, Cl A* 1,150 11
Safeco 1,450 80
Selective Insurance Group 350 17
WR Berkley 1,700 64
--------------
247
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
REAL ESTATE MANAGEMENT/SERVICES -- 0.2%
CB Richard Ellis Group, Cl A* 1,255 $ 58
Jones Lang LaSalle* 300 14
Trammell Crow* 1,225 31
--------------
103
- -------------------------------------------------------------
REAL ESTATE OPERATION/DEVELOPMENT -- 0.1%
Brookfield Properties 887 26
St. Joe 105 8
--------------
34
- -------------------------------------------------------------
REINSURANCE -- 0.4%
Aspen Insurance Holdings 455 13
Axis Capital Holdings 710 20
OdysseyRe Holdings 245 6
PartnerRe 1,150 75
PXRE Group 2,000 51
RenaissanceRe Holdings 1,450 65
--------------
230
- -------------------------------------------------------------
REITS-APARTMENTS -- 0.2%
AvalonBay Communities 270 24
BRE Properties, Cl A 289 13
Camden Property Trust 328 18
Equity Residential 811 33
GMH Communities Trust 443 6
Home Properties 326 15
--------------
109
- -------------------------------------------------------------
REITS-DIVERSIFIED -- 0.1%
Correctional Properties Trust 200 6
Digital Realty Trust 236 4
Mission West Properties 209 2
Spirit Finance 834 10
Washington Real Estate
Investment Trust 175 6
--------------
28
- -------------------------------------------------------------
REITS-HEALTH CARE -- 0.0%
Ventas 413 13
--------------
13
- -------------------------------------------------------------
REITS-HOTELS -- 0.4%
Ashford Hospitality Trust 3,500 42
DiamondRock Hospitality 3,355 40
Host Marriott 1,976 37
LaSalle Hotel Properties 718 25
MeriStar Hospitality* 11,440 102
--------------
246
- -------------------------------------------------------------
REITS-MANUFACTURED HOMES -- 0.0%
Equity Lifestyle Properties 172 8
--------------
8
- -------------------------------------------------------------
REITS-MORTGAGE -- 0.1%
HomeBanc 8,150 74
--------------
74
- -------------------------------------------------------------
24
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
REITS-OFFICE PROPERTY -- 0.6%
Alexandria Real Estate Equities 155 $ 12
American Financial Realty Trust 1,320 19
Arden Realty 319 13
BioMed Realty Trust 284 7
Boston Properties 1,596 122
Capital Automotive 666 26
Corporate Office Properties Trust 300 10
HRPT Properties Trust 528 7
Liberty Property Trust 559 25
Mack-Cali Realty 272 13
Parkway Properties 300 16
Vornado Realty Trust 375 33
--------------
303
- -------------------------------------------------------------
REITS-REGIONAL MALLS -- 0.3%
CBL & Associates Properties 1,354 62
General Growth Properties 279 13
Mills 142 9
Simon Property Group 1,197 96
--------------
180
- -------------------------------------------------------------
REITS-SHOPPING CENTERS -- 0.2%
Developers Diversified Realty 122 6
Equity One 336 8
Kimco Realty 198 13
Pan Pacific Retail Properties 340 24
Realty Income 329 8
Regency Centers 317 19
Tanger Factory Outlet Centers 288 8
Weingarten Realty Investors 298 12
--------------
98
- -------------------------------------------------------------
REITS-STORAGE -- 0.1%
Public Storage 438 29
U-Store-It Trust 156 3
--------------
32
- -------------------------------------------------------------
REITS-WAREHOUSE/INDUSTRIAL -- 0.2%
Catellus Development 2,100 76
EastGroup Properties 170 7
Prologis 47 2
--------------
85
- -------------------------------------------------------------
S&L/THRIFTS-CENTRAL US -- 0.1%
Franklin Bank* 2,555 47
--------------
47
- -------------------------------------------------------------
S&L/THRIFTS-EASTERN US -- 0.1%
Dime Community Bancshares 550 9
NewAlliance Bancshares 3,245 47
WSFS Financial 100 6
--------------
62
- -------------------------------------------------------------
S&L/THRIFTS-SOUTHERN US -- 0.1%
BankAtlantic Bancorp, Cl A 1,515 27
Ocwen Financial* 650 5
--------------
32
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
S&L/THRIFTS-WESTERN US -- 0.4%
Washington Federal 2,940 $ 68
Washington Mutual 3,807 162
--------------
230
- -------------------------------------------------------------
SUPER-REGIONAL BANKS-US -- 1.0%
Bank of America 4,471 195
Wachovia 1,302 65
Wells Fargo 4,413 271
--------------
531
--------------
TOTAL FINANCIAL (COST $5,253) 5,685
--------------
- -------------------------------------------------------------
HEALTH CARE -- 6.4%
DIAGNOSTIC EQUIPMENT -- 0.1%
Cytyc* 1,380 35
Gen-Probe* 660 29
--------------
64
- -------------------------------------------------------------
DISPOSABLE MEDICAL PRODUCTS -- 0.1%
C.R. Bard 470 31
ICU Medical* 630 21
--------------
52
- -------------------------------------------------------------
HEALTH CARE COST CONTAINMENT -- 0.1%
McKesson 1,824 82
--------------
82
- -------------------------------------------------------------
MEDICAL INSTRUMENTS -- 0.4%
Boston Scientific* 710 21
Guidant 573 39
Medtronic 220 12
St. Jude Medical* 2,090 99
Symmetry Medical* 2,060 51
--------------
222
- -------------------------------------------------------------
MEDICAL LABS & TESTING SERVICES -- 0.1%
Covance* 1,400 69
Quest Diagnostics 380 20
--------------
89
- -------------------------------------------------------------
MEDICAL PRODUCTS -- 1.0%
Baxter International 3,557 140
Becton Dickinson 365 20
Biomet 245 9
Cooper 280 19
Henry Schein* 215 9
Johnson & Johnson 4,276 274
Stryker 350 19
Varian Medical Systems* 280 11
Zimmer Holdings* 940 78
--------------
579
- -------------------------------------------------------------
MEDICAL-BIOMEDICAL/GENETIC -- 0.6%
Amgen* 490 39
Applera Corp - Celera Genomics Group* 4,205 52
Charles River Laboratories International* 560 27
Enzon Pharmaceuticals* 3,040 24
- -------------------------------------------------------------
25
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
MEDICAL-BIOMEDICAL/GENETIC -- CONTINUED
Genentech* 1,120 $ 100
Genzyme* 410 30
Georgia Gulf 250 8
Protein Design Labs* 1,260 29
--------------
309
- -------------------------------------------------------------
MEDICAL-DRUGS -- 1.1%
Abbott Laboratories 350 16
Angiotech Pharmaceuticals* 4,790 65
Bristol-Myers Squibb 4,340 108
Pfizer 7,540 200
Priority Healthcare, Cl B* 1,495 41
Schering-Plough 5,815 121
Sepracor* 130 7
Wyeth 1,347 62
--------------
620
- -------------------------------------------------------------
MEDICAL-GENERIC DRUGS -- 0.4%
Barr Pharmaceuticals* 160 8
Perrigo 3,690 51
Teva Pharmaceutical ADR 4,810 151
Watson Pharmaceuticals* 185 6
--------------
216
- -------------------------------------------------------------
MEDICAL-HMO -- 0.9%
Pacificare Health Systems* 1,240 94
Sierra Health Services* 200 13
UnitedHealth Group 2,556 134
WellPoint* 3,701 260
--------------
501
- -------------------------------------------------------------
MEDICAL-HOSPITALS -- 0.2%
Community Health Systems* 1,700 65
Tenet Healthcare* 475 6
Triad Hospitals* 520 26
--------------
97
- -------------------------------------------------------------
MEDICAL-NURSING HOMES -- 0.1%
Genesis HealthCare* 795 36
--------------
36
- -------------------------------------------------------------
MEDICAL-OUTPATIENT/HOME MEDICAL -- 0.0%
Amedisys* 450 18
Lincare Holdings* 300 12
--------------
30
- -------------------------------------------------------------
MEDICAL-WHOLESALE DRUG DISTRIBUTORS -- 0.4%
AmerisourceBergen 1,141 82
Cardinal Health 2,257 134
--------------
216
- -------------------------------------------------------------
OPTICAL SUPPLIES -- 0.2%
Alcon 790 91
--------------
91
- -------------------------------------------------------------
PHARMACY SERVICES -- 0.2%
Accredo Health* 1,075 48
Caremark Rx* 1,160 52
--------------
100
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
RESPIRATORY PRODUCTS -- 0.1%
Resmed* 280 $ 19
Respironics* 700 26
--------------
45
- -------------------------------------------------------------
THERAPEUTICS -- 0.3%
CV Therapeutics* 1,630 46
Gilead Sciences* 1,670 75
QLT* 3,670 31
Vicuron Pharmaceuticals* 480 14
--------------
166
- -------------------------------------------------------------
VETERINARY DIAGNOSTICS -- 0.1%
VCA Antech* 1,470 35
--------------
35
--------------
TOTAL HEALTH CARE (COST $3,233) 3,550
--------------
- -------------------------------------------------------------
INDUSTRIAL -- 4.6%
AEROSPACE/DEFENSE -- 0.5%
Armor Holdings* 1,280 52
Curtiss-Wright 200 12
Lockheed Martin 2,163 135
Rockwell Collins 910 45
Teledyne Technologies* 1,220 46
--------------
290
- -------------------------------------------------------------
AEROSPACE/DEFENSE-EQUIPMENT -- 0.2%
Alliant Techsystems* 980 71
BE Aerospace* 1,980 35
--------------
106
- -------------------------------------------------------------
AIRLINES -- 0.1%
Southwest Airlines 2,540 36
--------------
36
- -------------------------------------------------------------
BATTERIES/BATTERY SYSTEMS -- 0.1%
Greatbatch* 3,005 73
--------------
73
- -------------------------------------------------------------
BUILDING & CONSTRUCTION PRODUCTS-MISCELLANEOUS -- 0.1%
Dycom Industries* 555 14
Insituform Technologies, Cl A* 1,885 36
--------------
50
- -------------------------------------------------------------
BUILDING PRODUCTS-AIR & HEATING -- 0.0%
York International 220 9
--------------
9
- -------------------------------------------------------------
BUILDING PRODUCTS-CEMENT/AGGREGATE -- 0.2%
Lafarge North America 1,150 80
Texas Industries 200 15
--------------
95
- -------------------------------------------------------------
BUILDING-HEAVY CONSTRUCTION -- 0.1%
Chicago Bridge & Iron 1,000 28
Washington Group International* 560 30
--------------
58
- -------------------------------------------------------------
26
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
CONTAINERS-PAPER/PLASTIC -- 0.1%
Sealed Air* 1,150 $ 61
--------------
61
- -------------------------------------------------------------
DIVERSIFIED MANUFACTURING OPERATIONS -- 0.6%
Actuant, Cl A* 250 12
Brink's 1,375 50
Danaher 170 9
Dover 330 13
ESCO Technologies* 100 11
General Electric 1,100 38
Honeywell International 1,677 66
ITT 320 34
Trinity 270 10
Tyco International 3,084 94
--------------
337
- -------------------------------------------------------------
ELECTRIC PRODUCTS-MISCELLANEOUS -- 0.5%
Emerson Electric 1,984 131
LG Electronics GDR 144A* 1,500 28
Samsung Electronics GDR 144A 320 88
--------------
247
- -------------------------------------------------------------
ELECTRONIC MEASURING INSTRUMENTS -- 0.1%
Flir Systems* 1,260 42
--------------
42
- -------------------------------------------------------------
ELECTRONICS-MILITARY -- 0.1%
EDO 620 19
Engineered Support Systems 425 16
--------------
35
- -------------------------------------------------------------
ENGINEERING/R&D SERVICES -- 0.1%
Shaw Group* 1,740 33
--------------
33
- -------------------------------------------------------------
ENGINES-INTERNAL COMBUSTION -- 0.0%
Cummins 208 18
--------------
18
- -------------------------------------------------------------
FILTRATION/SEPARATION PRODUCTS -- 0.0%
Clarcor 450 14
--------------
14
- -------------------------------------------------------------
GOLD MINING -- 0.2%
AngloGold Ashanti ADR 1,600 55
Goldcorp 4,250 69
Royal Gold 350 7
--------------
131
- -------------------------------------------------------------
HAZARDOUS WASTE DISPOSAL -- 0.1%
American Ecology 1,480 28
Stericycle* 290 17
--------------
45
- -------------------------------------------------------------
IDENTIFICATION SYSTEMS/DEVELOPMENT -- 0.0%
Symbol Technologies 810 9
--------------
9
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
INDUSTRIAL AUTOMATION/ROBOT -- 0.1%
Rockwell Automation 510 $ 26
--------------
26
- -------------------------------------------------------------
INSTRUMENTS-SCIENTIFIC -- 0.0%
Applera Corp - Applied Biosystems Group 790 17
--------------
17
- -------------------------------------------------------------
MACHINERY-CONSTRUCTION & MINING -- 0.3%
Caterpillar 1,072 58
Joy Global 650 26
Terex* 1,400 68
--------------
152
- -------------------------------------------------------------
MACHINERY-FARM -- 0.1%
CNH Global 3,150 66
--------------
66
- -------------------------------------------------------------
MACHINERY-GENERAL INDUSTRY -- 0.1%
Wabtec 2,110 52
--------------
52
- -------------------------------------------------------------
MACHINERY-PRINT TRADE -- 0.0%
Zebra Technologies, Cl A* 280 11
- -------------------------------------------------------------
11
- -------------------------------------------------------------
METAL PROCESSORS & FABRICATORS -- 0.1%
Precision Castparts 330 30
--------------
30
- -------------------------------------------------------------
NON-HAZARDOUS WASTE DISPOSAL -- 0.1%
WCA Waste* 6,540 55
--------------
55
- -------------------------------------------------------------
POWER CONVERSION/SUPPLY EQUIPMENT -- 0.3%
American Power Conversion 6,156 173
--------------
173
- -------------------------------------------------------------
TOOLS-HAND HELD -- 0.2%
Stanley Works 2,642 129
--------------
129
- -------------------------------------------------------------
TRANSPORT-EQUIPMENT & LEASING -- 0.1%
GATX 2,030 77
--------------
77
- -------------------------------------------------------------
WIRE & CABLE PRODUCTS -- 0.1%
General Cable* 2,795 46
--------------
46
--------------
TOTAL INDUSTRIAL (COST $2,284) 2,523
--------------
- -------------------------------------------------------------
SERVICES -- 1.8%
ADVERTISING AGENCIES -- 0.0%
Interpublic Group* 970 12
--------------
12
- -------------------------------------------------------------
27
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
ADVERTISING SERVICES -- 0.1%
Getty Images* 450 $ 36
--------------
36
- -------------------------------------------------------------
COMMERCIAL SERVICES -- 0.1%
Alliance Data Systems* 590 25
ChoicePoint* 520 23
Quanta Services* 1,460 15
--------------
63
- -------------------------------------------------------------
COMMERCIAL SERVICES-FINANCE -- 0.1%
Paychex 910 32
Wright Express* 2,245 47
--------------
79
- -------------------------------------------------------------
COMPUTER SERVICES -- 0.4%
Anteon International* 630 30
Cognizant Technology Solutions, Cl A* 2,440 120
DST Systems* 250 13
Manhattan Associates* 2,240 46
--------------
209
- -------------------------------------------------------------
E-COMMERCE/SERVICES -- 0.2%
eBay* 1,460 61
Monster Worldwide* 900 27
--------------
88
- -------------------------------------------------------------
ELECTRIC-INTEGRATED -- 0.0%
El Paso Electric* 600 13
--------------
13
- -------------------------------------------------------------
HUMAN RESOURCES -- 0.1%
Hewitt, Cl A* 610 17
Medical Staffing Network Holdings* 5,505 31
--------------
48
- -------------------------------------------------------------
RENTAL AUTO/EQUIPMENT -- 0.1%
Aaron Rents 900 22
Dollar Thrifty Automotive Group* 300 10
Rent-A-Center* 1,750 37
--------------
69
- -------------------------------------------------------------
RESEARCH & DEVELOPMENT -- 0.1%
Pharmaceutical Product Development* 350 20
PRA International* 1,855 56
--------------
76
- -------------------------------------------------------------
SCHOOLS -- 0.2%
Apollo Group, Cl A* 880 66
Education Management* 490 17
--------------
83
- -------------------------------------------------------------
TELEPHONE-INTEGRATED -- 0.4%
AT&T 205 4
Tele Norte Leste Participacoes ADR 1,800 28
Telefonos de Mexico SA de CV ADR, Cl A 1,600 31
Valor Communications Group 3,930 55
Verizon Communications 2,382 82
--------------
200
--------------
TOTAL SERVICES (COST $907) 976
--------------
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
TECHNOLOGY -- 5.9%
APPLICATIONS SOFTWARE -- 0.4%
Citrix Systems* 640 $ 15
Infosys Technologies ADR 620 44
Intuit* 235 11
Microsoft 1,450 37
Quest Software* 1,230 18
Satyam Computer Services ADR 2,525 72
--------------
197
- -------------------------------------------------------------
B2B/E-COMMERCE -- 0.0%
webMethods* 3,625 22
--------------
22
- -------------------------------------------------------------
CELLULAR TELECOMMUNICATIONS -- 0.4%
China Mobile Hong Kong ADR 1,800 36
Mobile Telesystems ADR 1,400 50
Nextel Communications, Cl A* 1,668 58
Nextel Partners, Cl A* 670 17
NII Holdings* 660 49
--------------
210
- -------------------------------------------------------------
COMPUTER AIDED DESIGN -- 0.2%
Ansys* 450 16
Autodesk 1,250 43
Parametric Technology* 4,240 29
--------------
88
- -------------------------------------------------------------
COMPUTERS -- 0.2%
Apple Computer* 910 39
Dell* 600 24
International Business Machines 835 70
--------------
133
- -------------------------------------------------------------
COMPUTERS-INTEGRATED SYSTEMS -- 0.0%
MTS Systems 650 26
--------------
26
- -------------------------------------------------------------
COMPUTERS-MEMORY DEVICES -- 0.2%
EMC* 1,940 27
Maxtor* 2,935 17
Network Appliance* 1,080 28
Western Digital* 1,350 20
--------------
92
- -------------------------------------------------------------
DATA PROCESSING/MANAGEMENT -- 0.2%
Dun & Bradstreet* 205 13
MoneyGram International 2,840 60
NAVTEQ* 600 26
SEI Investments 375 15
--------------
114
- -------------------------------------------------------------
DECISION SUPPORT SOFTWARE -- 0.1%
Cognos* 780 30
NetIQ* 2,340 27
--------------
57
- -------------------------------------------------------------
ELECTRONIC COMPONENTS-MISCELLANEOUS -- 0.4%
Celestica* 1,045 12
CTS 2,055 26
- -------------------------------------------------------------
28
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
ELECTRONIC COMPONENTS-MISCELLANEOUS -- CONTINUED
Flextronics International* 765 $ 10
Gentex 1,050 19
Hon Hai Precision GDR 144A 5,800 65
Jabil Circuit* 740 23
LG Philips LCD ADR* 2,400 55
NAM TAI Electronics 300 7
Sypris Solutions 350 5
--------------
222
- -------------------------------------------------------------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 0.9%
ATI Technologies* 2,140 27
Broadcom, Cl A* 2,210 95
Fairchild Semiconductor International* 220 4
Integrated Silicon Solutions* 3,360 29
Intel 3,653 99
International Rectifier* 460 22
Intersil, Cl A 300 6
MEMC Electronic Materials* 3,700 63
National Semiconductor 525 13
Nvidia* 1,090 29
Omnivision Technologies* 1,340 19
QLogic* 1,400 43
Xilinx 360 10
Zoran* 1,460 21
--------------
480
- -------------------------------------------------------------
ELECTRONIC DESIGN AUTOMATION -- 0.0%
Cadence Design Systems* 655 11
--------------
11
- -------------------------------------------------------------
ELECTRONIC FORMS -- 0.0%
Adobe Systems 400 12
--------------
12
- -------------------------------------------------------------
ENTERPRISE SOFTWARE/SERVICES -- 0.5%
Informatica* 5,800 61
MicroStrategy, Cl A* 205 16
Oracle* 8,525 116
SAP ADR 1,150 49
SSA Global Technologies* 1,200 16
--------------
258
- -------------------------------------------------------------
IDENTIFICATION SYSTEMS/DEVELOPMENT -- 0.0%
Fargo Electronics* 750 13
--------------
13
- -------------------------------------------------------------
INTERNET APPLICATION SOFTWARE -- 0.0%
Verity* 2,485 25
--------------
25
- -------------------------------------------------------------
INTERNET INFRASTRUCTURE EQUIPMENT -- 0.1%
Avocent* 755 26
--------------
26
- -------------------------------------------------------------
INTERNET INFRASTRUCTURE SOFTWARE -- 0.1%
Radware* 3,700 63
--------------
63
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
INTERNET SECURITY -- 0.2%
Symantec* 4,292 $ 95
VeriSign* 580 15
--------------
110
- -------------------------------------------------------------
NETWORKING PRODUCTS -- 0.2%
Cisco Systems* 3,905 75
Foundry Networks* 3,600 42
Juniper Networks* 460 11
--------------
128
- -------------------------------------------------------------
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUITS -- 0.2%
Maxim Integrated Products 215 9
Standard Microsystems* 895 23
Taiwan Semiconductor Manufacturing ADR 3,780 32
United Microelectronics ADR 8,695 34
--------------
98
- -------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT -- 0.0%
Applied Materials* 590 11
--------------
11
- -------------------------------------------------------------
SOFTWARE TOOLS -- 0.0%
Borland Software* 3,680 25
--------------
25
- -------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT -- 0.1%
Comtech Telecommunications* 250 9
Comverse Technology* 990 25
Scientific-Atlanta 420 16
--------------
50
- -------------------------------------------------------------
TELECOMMUNICATIONS SERVICES -- 0.4%
Amdocs* 4,200 125
Iowa Telecommunications Services 2,025 38
Telekomunikasi Indonesia ADR* 1,700 39
--------------
202
- -------------------------------------------------------------
TELEPHONE-INTEGRATED -- 0.1%
Philippine Long Distance Telephone ADR* 1,400 41
--------------
41
- -------------------------------------------------------------
WEB HOSTING/DESIGN -- 0.0%
Macromedia* 530 21
--------------
21
- -------------------------------------------------------------
WEB PORTALS/ISP -- 0.4%
Google, Cl A* 355 102
Yahoo!* 2,790 93
--------------
195
- -------------------------------------------------------------
WIRELESS EQUIPMENT -- 0.6%
Motorola 4,569 97
Nokia ADR 8,884 141
Qualcomm 2,000 79
--------------
317
--------------
TOTAL TECHNOLOGY (COST $2,937) 3,247
--------------
- -------------------------------------------------------------
29
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
TRANSPORTATION -- 1.0%
AIRLINES -- 0.0%
Skywest 580 $ 12
--------------
12
- -------------------------------------------------------------
TRANSPORT-MARINE -- 0.2%
CP Ships 1,195 21
General Maritime* 450 18
Kirby* 200 10
Overseas Shipholding Group 1,150 71
--------------
120
- -------------------------------------------------------------
TRANSPORT-RAIL -- 0.5%
Burlington Northern Santa Fe 2,264 123
Canadian Pacific Railway 1,700 66
CSX 149 7
Norfolk Southern 2,043 76
--------------
272
- -------------------------------------------------------------
TRANSPORT-SERVICES -- 0.1%
Offshore Logistics* 450 16
Ryder System 421 17
United Parcel Service, Cl B 266 19
--------------
52
- -------------------------------------------------------------
TRANSPORT-TRUCK -- 0.2%
Celadon Group* 250 5
CNF 350 18
JB Hunt Transport Services 3,760 74
US Xpress, Cl A* 250 3
--------------
100
--------------
TOTAL TRANSPORTATION (COST $517) 556
--------------
- -------------------------------------------------------------
UTILITIES -- 1.4%
ELECTRIC-GENERATION -- 0.0%
AES* 814 13
--------------
13
- -------------------------------------------------------------
ELECTRIC-INTEGRATED -- 1.0%
Alliant Energy 215 6
Duke Energy 4,140 122
Entergy 2,407 188
MGE Energy 405 15
OGE Energy 2,900 88
Pike Electric 500 7
Public Service Enterprise Group 257 17
TXU 1,240 108
--------------
551
- -------------------------------------------------------------
ENERGY-ALTERNATE SOURCES -- 0.0%
Headwaters* 300 13
--------------
13
- -------------------------------------------------------------
GAS-DISTRIBUTION -- 0.1%
Energen 800 28
UGI 1,000 29
--------------
57
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
INDEPENDENT POWER PRODUCER -- 0.0%
Reliant Energy* 1,420 $ 19
--------------
19
- -------------------------------------------------------------
POWER CONVERSION/SUPPLY EQUIPMENT -- 0.3%
American Electric Power 2,529 98
Delta Electronics GDR 3,600 31
--------------
129
--------------
TOTAL UTILITIES (COST $692) 782
--------------
TOTAL COMMON STOCK (COST $23,577) 25,843
--------------
- -------------------------------------------------------------
FOREIGN COMMON STOCK -- 10.8%
AUSTRALIA -- 1.1%
Aristocrat Leisure 700 7
Australia & New Zealand
Banking Group 10,500 171
Babcock & Brown* 3,500 41
BHP Billiton 5,450 80
Commonwealth Bank of Australia 300 9
Insurance Australia Group 2,827 13
Macarthur Coal 900 5
Macquarie Bank 500 24
Rinker Group 14,700 169
Telstra 3,600 14
Westpac Banking 3,900 58
--------------
TOTAL AUSTRALIA 591
--------------
- -------------------------------------------------------------
AUSTRIA -- 0.2%
Andritz 200 19
EVN* 900 68
OMV* 230 11
Telekom Austria* 500 10
--------------
TOTAL AUSTRIA 108
--------------
- -------------------------------------------------------------
BELGIUM -- 0.4%
Belgacom 200 7
Dexia* 2,500 57
Fortis 5,700 167
--------------
TOTAL BELGIUM 231
--------------
- -------------------------------------------------------------
CANADA -- 0.5%
Canadian National Railway 400 26
Canadian Natural Resource 800 33
Dofasco 100 3
EnCana 1,600 66
Gerdau Ameristeel 500 3
IPSCO 669 36
Metro, Cl A 700 18
National Bank of Canada 300 14
Petro-Canada 500 36
PetroKazakhstan, Cl A 300 13
Teck Cominco, Cl B 600 23
--------------
TOTAL CANADA 271
--------------
- -------------------------------------------------------------
DENMARK -- 0.2%
DSV 37 4
Jyske Bank* 1,900 89
--------------
TOTAL DENMARK 93
--------------
- -------------------------------------------------------------
30
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
FINLAND -- 0.3%
Nokia 5,500 $ 88
Rautaruukki 800 14
Sampo, Cl A 2,800 43
--------------
TOTAL FINLAND 145
--------------
- -------------------------------------------------------------
FRANCE -- 0.7%
BNP Paribas 1,200 87
France Telecom* 600 18
Lafarge 70 7
Societe Generale 215 24
Total 231 58
Ubisoft Entertainment* 700 39
Vivendi Universal 5,750 183
--------------
TOTAL FRANCE 416
--------------
- -------------------------------------------------------------
GERMANY -- 0.7%
Adidas-Salomon 165 30
Allianz 459 58
Balda 129 1
BASF 211 15
Continental 1,655 129
Deutsche Boerse 342 30
E.ON 155 14
Mobilcom 937 24
Muenchener Rueckversicherungs 404 47
Schering 680 43
Techem* 139 6
--------------
TOTAL GERMANY 397
--------------
- -------------------------------------------------------------
HONG KONG -- 0.1%
ASM Pacific Technology 1,000 5
Orient Overseas International 2,200 10
Television Broadcasts 6,000 36
Vtech Holdings 4,000 11
--------------
TOTAL HONG KONG 62
--------------
- -------------------------------------------------------------
ITALY -- 0.4%
Banca Intesa 5,400 26
Capitalia 10,600 62
ENI 5,000 142
--------------
TOTAL ITALY 230
--------------
- -------------------------------------------------------------
JAPAN -- 2.3%
Bosch Auto Systems 3,034 17
Canon 1,300 64
Century Leasing System 900 10
Chubu Electric Power 3,700 90
Daito Trust Construction 400 15
en-japan 10 54
Fujitsu Frontech 400 4
Japan Tobacco 10 143
JFE Holdings 2,500 65
Kawasaki Kisen Kaisha 10,700 66
Mitsubishi 1,700 24
Mitsui OSK Lines 27,500 177
Mizohu Financial 26 118
Nippon Yusen KK 21,000 122
NTT DoCoMo 9 14
Pacific Metals 3,000 12
Point 300 13
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
JAPAN -- CONTINUED
Santen Pharmaceutical 400 $ 9
Sumitomo Mitsui Financial 5 33
Tokyo Steel Manufacturing 200 2
Toshiba TEC* 2,000 9
Toyota Tsusho 3,000 49
Yamaha Motor 9,200 171
--------------
TOTAL JAPAN 1,281
--------------
- -------------------------------------------------------------
NETHERLANDS -- 0.2%
Aegon 650 9
Boskalis Westminster 205 8
ING Groep 2,200 67
Royal KPN 300 3
TNT 600 15
--------------
TOTAL NETHERLANDS 102
--------------
- -------------------------------------------------------------
NEW ZEALAND -- 0.3%
Fletcher Building 31,059 155
--------------
TOTAL NEW ZEALAND 155
--------------
- -------------------------------------------------------------
NORWAY -- 0.2%
Statoil 4,800 104
--------------
TOTAL NORWAY 104
--------------
- -------------------------------------------------------------
SPAIN -- 0.8%
Banco Bilbao Vizcaya Argentaria 860 15
Banco Santander Central Hispano 14,228 177
Gestevision Telecinco 1,700 40
Repsol YPF 6,600 185
--------------
TOTAL SPAIN 417
--------------
- -------------------------------------------------------------
SWITZERLAND -- 0.4%
Credit Suisse Group 2,760 116
Syngenta 100 11
Xstrata* 1,000 21
Zurich Financial 510 91
--------------
TOTAL SWITZERLAND 239
--------------
- -------------------------------------------------------------
UNITED KINGDOM -- 2.0%
Alliance Unichem 2,200 32
Antofagasta 2,200 52
AstraZeneca 2,200 99
Aviva 300 4
BHP Billiton 3,200 45
British Sky Broadcasting 2,900 27
Corus Group* 29,400 24
Hanson 3,824 39
HBOS 6,800 104
HSBC Holdings 900 15
International Power 7,500 28
Lloyds TSB Group 10,500 89
Next 610 17
O2 40,400 99
Royal Bank of Scotland 3,425 102
Royal Dutch Shell, Cl B* 5,000 159
SABMiller 3,000 52
Scottish & Southern Energy 3,100 53
Scottish Power 500 4
Shire Pharmaceuticals 400 5
Tesco 4,600 26
- -------------------------------------------------------------
31
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Shares/Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
UNITED KINGDOM -- CONTINUED
Ultra Electronics Holdings 700 $ 11
Vodafone Group 11,964 31
--------------
TOTAL UNITED KINGDOM 1,117
--------------
TOTAL FOREIGN COMMON STOCK (COST $5,600) 5,959
--------------
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED OBLIGATIONS -- 10.7%
Federal Home Loan Mortgage Corporation
6.000%, 08/01/29 $ 42 43
6.000%, 08/01/34 46 47
6.000%, 10/01/34 172 176
5.500%, 09/01/17 100 103
5.500%, 09/01/19 91 93
5.500%, 10/01/34 107 107
5.500%, 01/01/35 48 48
5.500%, 02/01/35 263 264
5.500%, 03/01/35 97 97
5.500%, 06/01/35 502 505
5.000%, 02/01/19 30 30
5.000%, 07/01/19 94 94
5.000%, 05/01/20 496 497
Federal National Mortgage Association
6.500%, 03/01/35 365 378
6.000%, 09/01/34 363 371
6.000%, 12/01/34 167 170
6.000%, 12/01/34 156 159
5.500%, 03/01/20 116 118
5.500%, 07/01/33 716 720
5.500%, 10/01/34 40 40
5.500%, 03/01/35 291 292
5.500%, 06/01/35 507 510
5.000%, 10/01/19 140 141
Federal National Mortgage Association TBA
5.000%, 08/01/34 600 591
Government National Mortgage Association
6.000%, 12/15/34 41 43
6.000%, 02/20/35 93 96
5.500%, 01/20/35 143 144
--------------
TOTAL U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS (COST $5,919) 5,877
--------------
- -------------------------------------------------------------
CORPORATE BONDS -- 9.8%
Advanta Capital Trust, Ser B
8.990%, 12/17/26 20 20
Allegheny Energy Supply 144A
8.250%, 04/15/12 50 56
Allied Waste North America, Ser B
8.875%, 04/01/08 70 74
Alltel
4.656%, 05/17/07 115 115
Alrosa Finance 144A
8.875%, 11/17/14 50 57
America Movil
6.375%, 03/01/35 50 49
American General Finance, Ser G MTN
5.375%, 09/01/09 50 51
Amgen
4.000%, 11/18/09 60 59
AT&T Wireless Services
8.750%, 03/01/31 40 55
8.125%, 05/01/12 40 47
- -------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
CORPORATE BONDS -- CONTINUED
Bank One
5.900%, 11/15/11 $ 90 $ 95
Baxter International
5.250%, 05/01/07 65 66
BCPLU Crystal US Holdings 144A
9.625%, 06/15/14 50 56
BP Amoco
8.500%, 04/01/12 80 97
Broder Brothers, Ser B
11.250%, 10/15/10 27 27
Capital One Financial
4.800%, 02/21/12 40 39
Carnival
3.750%, 11/15/07 70 69
Chesapeake Energy
6.875%, 01/15/16 35 36
Clayton William Energy 144A
7.750%, 08/01/13 60 60
Comcast
7.625%, 02/15/08 30 32
5.300%, 01/15/14 95 96
Consolidated Natural Gas
6.875%, 10/15/26 50 57
Countrywide Home Loan MTN
3.250%, 05/21/08 70 67
DaimlerChrysler
4.750%, 01/15/08 45 45
Dynegy Holdings 144A
10.125%, 07/15/13 50 57
Echostar DBS
6.625%, 10/01/14 22 22
FedEx
9.650%, 06/15/12 60 76
Fidelity National Financial
7.300%, 08/15/11 25 27
FPL Group Capital, Ser A
4.086%, 02/16/07 10 10
General Cable
9.500%, 11/15/10 50 52
General Electric Capital, Ser A MTN
6.875%, 11/15/10 90 99
General Motors Acceptance
7.000%, 02/01/12 65 62
General Nutrition Center
8.625%, 01/15/11 50 47
Georgia Power, Ser J
4.875%, 07/15/07 65 66
Greenbrier Companies 144A
8.375%, 05/15/15 50 52
HCA
6.375%, 01/15/15 55 56
Hewlett-Packard
5.750%, 12/15/06 75 76
HLI Operating
10.500%, 06/15/10 50 50
HSBC Finance
4.750%, 04/15/10 65 65
Hudbay Mining and Smelting 144A
9.625%, 01/15/12 50 50
- -------------------------------------------------------------
32
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
CORPORATE BONDS -- CONTINUED
Intelsat Bermuda 144A (B)
8.695%, 01/15/12 $ 30 $ 31
J.B. Poindexter
8.750%, 03/15/14 60 55
J.C. Penney
8.125%, 04/01/27 50 53
John Deere Capital, Ser D MTN
4.400%, 07/15/09 75 74
K. Hovnanian
8.875%, 04/01/12 50 54
Kinder Morgan
6.500%, 09/01/12 60 65
Liberty Media
8.500%, 07/15/29 50 51
Lockheed Martin
7.200%, 05/01/36 90 112
Marathon Oil
5.375%, 06/01/07 80 81
Merrill Lynch, Ser C MTN
4.250%, 02/08/10 70 69
Metlife
5.000%, 06/15/15 55 55
MGM Mirage
5.875%, 02/27/14 55 54
Midamerican Energy Holdings
5.875%, 10/01/12 45 47
3.500%, 05/15/08 65 63
Motorola
8.000%, 11/01/11 65 76
4.608%, 11/16/07 55 55
Navistar International 144A
6.250%, 03/01/12 45 44
Neenah Paper 144A
7.375%, 11/15/14 52 51
PNC Funding
4.200%, 03/10/08 60 60
Prudential Financial MTN
3.750%, 05/01/08 10 10
Prudential Financial, Ser B MTN
5.100%, 09/20/14 50 50
PSE&G Power
6.950%, 06/01/12 110 122
PXRE
8.850%, 02/15/27 35 47
Quality Distributors
9.000%, 11/15/10 50 46
Qwest
9.125%, 03/15/12 80 88
Reed Elsevier Capital
6.125%, 08/01/06 65 66
Rogers Cable
6.750%, 03/15/15 30 31
Rogers Wireless
8.000%, 12/15/12 30 32
Schering-Plough
6.750%, 12/01/33 65 77
SLM, Ser A MTN
4.500%, 07/26/10 85 84
3.950%, 08/15/08 45 44
- -------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
CORPORATE BONDS -- CONTINUED
Solo Cup
8.500%, 02/15/14 $ 50 $ 48
Southern Company Capital Funding, Ser A
5.300%, 02/01/07 20 20
Southern Peru Copper 144A
6.375%, 07/27/15 100 100
Sprint Capital
6.000%, 01/15/07 65 66
Stater Brothers Holdings
8.125%, 06/15/12 50 51
STATS ChipPAC
6.750%, 11/15/11 25 24
Texas Industries 144A
7.250%, 07/15/13 80 84
TFM 144A
9.375%, 05/01/12 50 54
Time Warner
7.625%, 04/15/31 50 62
Town Sports International
9.625%, 04/15/11 40 42
Toys R Us
7.875%, 04/15/13 50 44
Universal City Florida
7.960%, 05/01/10 30 32
Univision Communications
3.875%, 10/15/08 65 63
Uno Restaurant 144A
10.000%, 02/15/11 25 24
Verizon Wireless Capital
5.375%, 12/15/06 80 81
Washington Mutual Financial
6.875%, 05/15/11 55 61
WCI Communities
10.625%, 02/15/11 50 54
Wellpoint
5.000%, 12/15/14 50 50
3.750%, 12/14/07 40 39
Weyerhaeuser
5.950%, 11/01/08 45 47
Wyeth
5.500%, 02/01/14 70 72
Xcel Energy
7.000%, 12/01/10 85 93
XL Capital
5.250%, 09/15/14 60 59
--------------
TOTAL CORPORATE BONDS (COST $5,404) 5,409
--------------
- -------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 5.9%
U.S. Treasury Bond
7.500%, 11/15/16 100 128
5.375%, 02/15/31 200 227
U.S. Treasury Note
5.750%, 08/15/10 560 601
4.125%, 05/15/15 1,225 1,209
3.375%, 09/15/09 870 845
3.375%, 02/15/08 250 246
--------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $3,280) 3,256
--------------
- -------------------------------------------------------------
33
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
FOREIGN BONDS -- 1.9%
European Investment Bank (JPY)
1.400%, 06/20/17 $1,000 $ 89
Netherlands Government (EUR)
4.250%, 07/15/13 639 838
U.K. Treasury Bond (GBP)
4.250%, 03/07/36 80 139
--------------
TOTAL FOREIGN BONDS (COST $1,098) 1,066
--------------
- -------------------------------------------------------------
ASSET-BACKED SECURITIES -- 0.8%
HOME EQUITY LOANS -- 0.8%
Citigroup Commercial Mortgage,
Ser 2004-C2, Cl A3 80 78
GE Capital Commercial Mortgage,
Ser 2004-C3, Cl A3 70 70
JP Morgan Chase CMO,
Ser 2005-lDP1, Cl A2 100 100
JP Morgan Chase Commercial Mortgage,
Ser 2004-CBX, Cl A4 70 69
Residential Asset Mortgage Program,
Ser 2004-RS12, Cl AI2 35 35
Wachovia Bank Commercial
Mortgage Trust,
Ser 2003-c5, Cl A2 95 90
--------------
442
--------------
TOTAL ASSET-BACKED SECURITIES (COST $447) 442
--------------
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 0.4%
Federal Home Loan Mortgage Corporation
5.875%, 03/21/11 105 111
Federal National Mortgage Association
5.125%, 01/02/14 110 112
--------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (COST $228) 223
--------------
- -------------------------------------------------------------
MORTGAGE RELATED -- 0.3%
Banc of America CMO,
Ser 2003-2, Cl A2
4.342%, 03/11/41 30 30
Countrywide Home Loans CMO,
Ser 2004-18, Cl A1
6.000%, 10/25/34 90 91
TXU Electric Delivery Transition ABS,
Ser 2004-1, Cl A2
4.810%, 11/17/14 35 35
--------------
TOTAL MORTGAGE RELATED (COST $156) 156
--------------
- -------------------------------------------------------------
REPURCHASE AGREEMENT -- 13.0%
Deutsche Bank
3.29%, dated 07/29/05, to be
repurchased on 08/01/05, repurchase
price $7,153,099 (collateralized
by various U.S. Government
obligations, par values ranging
from $90,000 to $7,355,000,
2.500% to 3.500%, 03/15/06
to 12/12/08; total market
value $7,294,755) (A) 7,153 7,153
--------------
TOTAL REPURCHASE AGREEMENT (COST $7,153) 7,153
--------------
TOTAL INVESTMENTS -- 100.5% (COST $52,862) 55,384
--------------
- -------------------------------------------------------------
Description Value (000)
- -------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (0.5%)
Foreign Currency (Cost $444) $ 444
Receivable for Fund Shares Sold 827
Payable for Administration Fees (5)
Payable for Distribution Fees (23)
Payable for Insurance Expense to Affiliates (123)
Payable for Investment Advisory Fees (46)
Payable for Investment Securities Purchased (1,634)
Other Assets and Liabilities, Net 302
--------------
TOTAL OTHER ASSETS AND LIABILITIES (258)
--------------
NET ASSETS -- 100.0% $ 55,126
==============
- -------------------------------------------------------------
NET ASSETS:
Paid-in-Capital ($0.001 par value) $ 52,444
Distributions in excess of net
investment income (16)
Accumulated net realized gain on investments 190
Unrealized appreciation on investments 2,522
Unrealized depreciation on forward foreign
currency contracts (14)
--------------
NET ASSETS $ 55,126
==============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS
($11,302,613 / 1,024,135 SHARES) $11.04
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A
($19,480,934 / 1,767,553 SHARES) $11.02
======
MAXIMUM OFFERING
PRICE PER SHARE -- CLASS A
($11.02/94.25%) $11.69
======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS C+
($24,342,062 / 2,213,440 SHARES) $11.00
======
* Non-income producing security.
+ Class C shares have a contingent deferred sales charge.
For a description of a possible sales charge, please see
the Portfolio's prospectus.
144A -- Security sold within the terms of a private placement
memorandum, which is exempt from registration under
Section 3A-4, 4(2) or 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in
that program or other accredited investors. On July 31,
2005 the value of these securities amounted to $973,954,
representing 1.8% of the net assets of the Portfolio.
(A) -- Tri-party repurchase agreement
(B) -- Variable rate security -- the rate reported is the
rate as of July 31, 2005.
ABS -- Asset-Backed Security
ADR -- American Depositary Receipt
Cl -- Class
CMO -- Collateralized Mortgage Obligation
EUR -- Euro
GBP -- British Pound
GDR -- Global Depositary Receipt
JPY -- Japanese Yen
LLC -- Limited Liability Company
MTN -- Medium Term Note
REITs -- Real Estate Investment Trusts
Ser -- Series
TBA -- Security traded under delayed delivery commitments
settling after July 31, 2005. Income on this security
will not be earned until settlement date.
Cost figures are shown with "000's" omitted.
The accompanying notes are an integral part of the financial statements.
34
OLD MUTUAL ADVISOR FUNDS
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
PORTFOLIO PROFILE
For the 10-month period ended July 31, 2005, the Old Mutual Asset Allocation
Moderate Growth Portfolio (Institutional Class) gained 13.43% at net asset
value. By comparison, the Portfolio's benchmarks, the S&P 500 and the Lehman
Brothers U.S. Aggregate Bond Index, gained 12.37% and 2.56% for the same period,
respectively. Performance for all share classes is included on the following
page.
FACTORS CONTRIBUTING TO PORTFOLIO PERFORMANCE
Across the period the Portfolio was managed to a target allocation of
approximately 80% in equities and 20% in fixed-income securities. The
Portfolio's investments in international equities were the largest contributor
to its strong returns. Securities in the energy and natural resources sectors
(including Canadian Natural Resources LTD (Canada), Statoil ASA (Norway), and
Royal Dutch Shell PLC (United Kingdom) made positive contributions to returns.
Domestic positions in energy stocks also made significant contributions to
returns; most notably, ConocoPhillips, Occidental Petroleum Corp, and Valero
Energy Corp. The Portfolio was able to take advantage of the increase in the
price of crude oil, which climbed above $60 per barrel during the period,
hitting historical highs on numerous occasions.
The Portfolio's focus on large-cap securities in both the value and growth
categories also contributed to returns. Small-cap growth stocks also had a
positive effect. Among the Portfolio's meaningful stock contributors in the
small-cap growth category were specialty apparel retailers, Carter's and
Children's Place Retail Stores. Issuers such as Telecommunications company
TeliaSonera (Sweden) and Glory, Ltd. (Japan), a money handling company,
detracted from returns and were sold from the Portfolio.
At the end of the period, the Portfolio held approximately 7% of its assets in
intermediate-term, investment-grade debt or core bonds. These core bond
holdings, which include investment-grade corporate bonds, mortgage-backed
securities, and U.S. government and agency debt, had a slightly negative effect
on returns.
MARKET ENVIRONMENT
The economic environment in the United States during the period can be
characterized by two primary factors: rising oil prices and the Federal Reserve
ratcheting up short-term interest rates in an effort to contain inflation. Most
equity indices posted gains during the period. A relatively healthy U.S. economy
provided a boost to the rest of the world as U.S. consumer demand remained
strong and the U.S. dollar strengthened versus the Euro and other foreign
currencies.
INVESTMENT OUTLOOK
Although we continue to overweight value stocks in all market-cap areas, we are
keeping a close watch on growth versus value indicators. Valuation spreads
between growth and value have compressed and there may be a benefit from an
inflow of liquidity into the growth style.
We also believe that rising interest rates will result in a downward adjustment
in the housing and real estate market. As a result, we continue to underweight
real estate securities.
35
OLD MUTUAL ADVISOR FUNDS
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
ASSET CLASS WEIGHTINGS AS OF JULY 31, 2005
[Pie chart omitted -- plot points are as follows:]
Common Stock 60%
Foreign Common Stock 16%
Repurchase Agreement 9%
Residential Mortgages-Agency 6%
U.S. Treasury Obligations 4%
Corporate Bonds 4%
Foreign Bonds 1%
% of Total Portfolio Investments
TOTAL RETURN AS OF JULY 31, 2005
Since
Inception*
- -------------------------------------------------------------
Institutional Class 13.43%
- -------------------------------------------------------------
Class A with front-end load 6.61%
- -------------------------------------------------------------
Class A without load 13.11%
- -------------------------------------------------------------
Class C with deferred sales load 11.44%
- -------------------------------------------------------------
Class C without deferred sales load 12.44%
- -------------------------------------------------------------
S&P 500 Index 12.37%
- -------------------------------------------------------------
Lehman Brothers U.S. Aggregate Bond Index 2.56%
- -------------------------------------------------------------
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative indices can be found on page 2.
* Not annualized, inception date 9/30/04
PORTFOLIO PERFORMANCE
[Line chart omitted -- plot points are as follows:]
Old Mutual
Old Mutual Old Mutual Asset
Asset Asset Allocation
Allocation Allocation Moderate
Moderate Moderate Growth Lehman
Growth Growth Portfolio, Brothers
Portfolio, Portfolio, Institutional S&P 500 U.S. Aggregate
Class A Class C Class Index Index
- ------------------------------------------------------------------------------------------------------------------------------
9/30/2004 $ 9425 $10000 $10000 $10000 $10000
10/31/2004 9500 10070 10080 10153 10084
11/30/2004 9933 10530 10550 10564 10003
12/31/2004 10226 10835 10862 10923 10095
1/31/2005 10009 10594 10632 10657 10159
2/28/2005 10264 10864 10912 10881 10099
3/31/2005 10113 10704 10752 10688 10048
4/30/2005 9905 10465 10532 10485 10183
5/31/2005 10151 10715 10792 10818 10293
6/30/2005 10331 10904 10982 10834 10350
7/31/2005 10661 11144 11343 11237 10256
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The graph above compares
an investment made in each of the Portfolio's Class shares on the inception date
of 9/30/04 to an investment made in unmanaged securities indices on that date.
The performance of the Portfolio's Class A shares shown in the line graph takes
into account the maximum initial sales charge. Performance for the Portfolio's
Class C shares assumes the payment of a contingent deferred sales load, which is
charged on investments held less than one year. The Portfolio's performance in
this chart and the performance table assumes reinvestment of dividends and
capital gain distributions but does not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or on the redemption of
Portfolio shares.
36
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
-------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
COMMON STOCK -- 58.6%
BASIC MATERIALS -- 2.1%
AGRICULTURAL CHEMICALS -- 0.2%
Agrium 4,200 $ 96
Potash Corporation of Saskatchewan 225 24
--------------
120
- -------------------------------------------------------------
BUILDING & CONSTRUCTION PRODUCTS-MISCELLANEOUS -- 0.0%
USG* 350 17
--------------
17
- -------------------------------------------------------------
CHEMICALS-DIVERSIFIED -- 0.6%
Dow Chemical 1,459 70
Lyondell Chemical 3,527 98
Nova Chemicals 1,600 56
Olin 5,375 99
--------------
323
- -------------------------------------------------------------
CHEMICALS-PLASTICS -- 0.1%
Spartech 2,025 38
--------------
38
- -------------------------------------------------------------
CHEMICALS-SPECIALTY -- 0.1%
Eastman Chemical 175 10
Hercules* 3,662 51
--------------
61
- -------------------------------------------------------------
COAL -- 0.1%
Peabody Energy 500 33
--------------
33
- -------------------------------------------------------------
CONTAINERS-METAL/GLASS -- 0.0%
Crown Holdings* 1,050 17
--------------
17
- -------------------------------------------------------------
DIVERSIFIED MINERALS -- 0.1%
Cia Vale do Rio Doce ADR 1,600 52
--------------
52
- -------------------------------------------------------------
INDUSTRIAL GASES -- 0.1%
Air Products & Chemicals 245 15
Airgas 800 23
Praxair 580 29
--------------
67
- -------------------------------------------------------------
METAL-COPPER -- 0.1%
Phelps Dodge 760 81
--------------
81
- -------------------------------------------------------------
PAPER & RELATED PRODUCTS -- 0.3%
Domtar 1,150 8
Neenah Paper 2,810 93
Schweitzer-Mauduit International 400 10
Smurfit-Stone Container* 2,070 25
--------------
136
- -------------------------------------------------------------
PETROCHEMICALS -- 0.1%
Reliance GDR 144A 2,100 68
--------------
68
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
RUBBER-TIRES -- 0.1%
Goodyear Tire & Rubber* 1,531 $ 27
--------------
27
- -------------------------------------------------------------
STEEL-PRODUCERS -- 0.2%
Nucor 1,350 75
POSCO 600 30
Schnitzer Steel, Cl A 400 11
--------------
116
--------------
TOTAL BASIC MATERIALS (COST $1,086) 1,156
--------------
- -------------------------------------------------------------
CONSUMER CYCLICAL -- 7.8%
APPAREL MANUFACTURERS -- 0.3%
Carter's* 830 51
Coach* 1,460 51
Polo Ralph Lauren 1,160 57
--------------
159
- -------------------------------------------------------------
ATHLETIC FOOTWEAR -- 0.1%
Nike, Cl B 550 46
--------------
46
- -------------------------------------------------------------
AUDIO/VIDEO PRODUCTS -- 0.0%
Dolby Laboratories, Cl A* 700 13
--------------
13
- -------------------------------------------------------------
AUTO-CARS/LIGHT TRUCKS -- 0.1%
Tata Motors ADR 6,600 75
--------------
75
- -------------------------------------------------------------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 0.0%
BorgWarner 405 24
--------------
24
- -------------------------------------------------------------
BROADCAST SERVICES/PROGRAMMING -- 0.2%
Citadel Broadcasting* 1,065 13
Liberty Global, Cl A* 379 18
Nexstar Broadcasting Group, Cl A* 9,870 55
--------------
86
- -------------------------------------------------------------
BUILDING-RESIDENTIAL/COMMERCIAL -- 0.4%
DR Horton 2,182 90
KB Home 1,147 94
Pulte Homes 460 43
--------------
227
- -------------------------------------------------------------
CABLE TV -- 0.5%
Insight Communications, Cl A* 4,225 49
Mediacom Communications, Cl A* 29,475 206
--------------
255
- -------------------------------------------------------------
CASINO SERVICES -- 0.3%
Harrah's Entertainment 1,000 79
International Game Technology 1,585 43
Scientific Games, Cl A* 2,100 58
--------------
180
- -------------------------------------------------------------
37
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
CRUISE LINES -- 0.4%
Carnival 3,818 $ 200
Royal Caribbean Cruises 455 21
--------------
221
- -------------------------------------------------------------
DISTRIBUTION/WHOLESALE -- 0.1%
CDW 375 23
Nuco2* 350 9
--------------
32
- -------------------------------------------------------------
ENTERTAINMENT SOFTWARE -- 0.3%
Activision* 5,573 113
Electronic Arts* 700 40
THQ* 650 23
--------------
176
- -------------------------------------------------------------
FOOD-RETAIL -- 0.0%
Cia Brasileira de Distribuicao Grupo
Pao de Acucar ADR 1,100 24
--------------
24
- -------------------------------------------------------------
GAMBLING (NON-HOTEL) -- 0.0%
Isle of Capri Casinos* 550 15
--------------
15
- -------------------------------------------------------------
GOLF -- 0.0%
Callaway Golf 580 9
--------------
9
- -------------------------------------------------------------
HOTELS & MOTELS -- 0.5%
Fairmont Hotels & Resorts 415 13
Jameson Inns* 27,170 64
Lodgian* 4,325 45
Marriott International, Cl A 430 29
Orient Express Hotels, Cl A 212 7
Starwood Hotels & Resorts Worldwide 1,493 95
--------------
253
- -------------------------------------------------------------
MOTORCYCLE/MOTOR SCOOTER -- 0.1%
Harley-Davidson 490 26
--------------
26
- -------------------------------------------------------------
MULTIMEDIA -- 0.4%
Entravision Communications, Cl A* 9,635 82
EW Scripps, Cl A 610 31
Walt Disney 3,846 99
--------------
212
- -------------------------------------------------------------
PUBLISHING-BOOKS -- 0.2%
Scholastic* 2,330 86
--------------
86
- -------------------------------------------------------------
PUBLISHING-NEWSPAPERS -- 0.3%
Gannett 1,088 79
Journal Register* 4,405 82
--------------
161
- -------------------------------------------------------------
PUBLISHING-PERIODICALS -- 0.2%
Reader's Digest 7,175 117
--------------
117
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
RADIO -- 0.6%
Cumulus Media, Cl A* 5,440 $ 69
Emmis Communications, Cl A* 2,895 60
Radio One, Cl A* 4,805 63
Radio One, Cl D* 4,410 58
Spanish Broadcasting System, Cl A* 8,005 69
Westwood One* 510 10
--------------
329
- -------------------------------------------------------------
RETAIL-APPAREL/SHOE -- 0.2%
Charming Shoppes* 2,300 27
Childrens Place Retail Stores* 600 28
JoS A Bank Clothiers* 600 27
Ross Stores 720 19
Urban Outfitters* 220 13
--------------
114
- -------------------------------------------------------------
RETAIL-ARTS & CRAFTS -- 0.1%
Michaels Stores 1,600 66
--------------
66
- -------------------------------------------------------------
RETAIL-BEDDING -- 0.0%
Bed Bath & Beyond* 550 25
--------------
25
- -------------------------------------------------------------
RETAIL-BUILDING PRODUCTS -- 0.4%
Home Depot 2,394 104
Lowe's 1,520 101
--------------
205
- -------------------------------------------------------------
RETAIL-DISCOUNT -- 0.2%
Costco Wholesale 225 11
Dollar General 3,263 66
Target 530 31
--------------
108
- -------------------------------------------------------------
RETAIL-DRUG STORE -- 0.2%
CVS 1,520 47
Walgreen 730 35
--------------
82
- -------------------------------------------------------------
RETAIL-HYPERMARKETS -- 0.1%
Wal-Mart de Mexico ADR, Cl V 1,800 80
--------------
80
- -------------------------------------------------------------
RETAIL-JEWELRY -- 0.0%
Tiffany 525 18
--------------
18
- -------------------------------------------------------------
RETAIL-MAJOR DEPARTMENT STORE -- 0.2%
JC Penney Holding 1,590 89
--------------
89
- -------------------------------------------------------------
RETAIL-OFFICE SUPPLIES -- 0.1%
OfficeMax 680 20
Staples 2,185 50
--------------
70
- -------------------------------------------------------------
38
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
RETAIL-PAWN SHOPS -- 0.1%
Cash America International 650 $ 14
Ezcorp, Cl A* 850 14
--------------
28
- -------------------------------------------------------------
RETAIL-PET FOOD & SUPPLIES -- 0.0%
Petco Animal Supplies* 625 17
--------------
17
- -------------------------------------------------------------
RETAIL-PETROLEUM PRODUCTS -- 0.0%
World Fuel Services 1,050 26
--------------
26
- -------------------------------------------------------------
RETAIL-REGIONAL DEPARTMENT STORE -- 0.1%
Kohl's* 720 41
--------------
41
- -------------------------------------------------------------
RETAIL-RESTAURANTS -- 0.4%
Darden Restaurants 1,550 54
Lone Star Steakhouse & Saloon 990 30
O'Charleys* 600 11
PF Chang's China Bistro* 300 17
Starbucks* 420 22
Wendy's International 1,280 66
--------------
200
- -------------------------------------------------------------
RETAIL-VIDEO RENTAL -- 0.2%
Blockbuster, Cl A 10,450 90
Movie Gallery 950 24
--------------
114
- -------------------------------------------------------------
TELEVISION -- 0.3%
Sinclair Broadcast Group, Cl A 17,550 158
Univision Communications, Cl A* 475 13
--------------
171
- -------------------------------------------------------------
THEATERS -- 0.0%
Carmike Cinemas 350 11
--------------
11
- -------------------------------------------------------------
TOYS -- 0.2%
Mattel 6,100 114
--------------
114
--------------
TOTAL CONSUMER CYCLICAL (COST $4,006) 4,305
--------------
- -------------------------------------------------------------
CONSUMER NON-CYCLICAL -- 3.1%
AGRICULTURAL OPERATIONS -- 0.4%
Delta & Pine Land 2,400 64
Monsanto 600 41
Tejon Ranch* 1,610 99
--------------
204
- -------------------------------------------------------------
BEVERAGES-NON-ALCOHOLIC -- 0.1%
PepsiCo 590 32
--------------
32
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
BREWERY -- 0.4%
Grupo Modelo ADR, Cl C 1,500 $ 49
Molson Coors Brewing, Cl B 1,000 63
Quilmes ADR 2,900 89
--------------
201
- -------------------------------------------------------------
CONSUMER PRODUCTS-MISCELLANEOUS -- 0.1%
Helen of Troy* 3,150 74
--------------
74
- -------------------------------------------------------------
COSMETICS & TOILETRIES -- 0.1%
Gillette 276 15
Procter & Gamble 810 45
--------------
60
- -------------------------------------------------------------
FOOD-DAIRY PRODUCTS -- 0.2%
Dean Foods* 3,721 133
--------------
133
- -------------------------------------------------------------
FOOD-FLOUR & GRAIN -- 0.2%
Archer-Daniels-Midland 4,371 100
--------------
100
- -------------------------------------------------------------
FOOD-MEAT PRODUCTS -- 0.1%
Smithfield Foods* 3,200 84
--------------
84
- -------------------------------------------------------------
FOOD-MISCELLANEOUS/DIVERSIFIED -- 0.1%
ConAgra Foods 3,314 75
--------------
75
- -------------------------------------------------------------
FOOD-RETAIL -- 0.1%
Whole Foods Market 230 31
--------------
31
- -------------------------------------------------------------
OFFICE SUPPLIES & FORMS -- 0.0%
Avery Dennison 225 13
--------------
13
- -------------------------------------------------------------
POULTRY -- 0.2%
Pilgrim's Pride 1,700 64
Sanderson Farms 600 26
--------------
90
- -------------------------------------------------------------
TOBACCO -- 1.1%
Altria Group 4,780 320
Imperial Tobacco Group ADR 3,316 172
UST 3,729 172
--------------
664
--------------
TOTAL CONSUMER NON-CYCLICAL (COST $1,710) 1,761
--------------
- -------------------------------------------------------------
ENERGY -- 5.9%
COAL -- 0.2%
Arch Coal 170 10
Consol Energy 1,600 108
--------------
118
- -------------------------------------------------------------
OIL & GAS DRILLING -- 0.7%
Atwood Oceanics* 485 33
ENSCO International 520 21
GlobalSantaFe 280 13
- -------------------------------------------------------------
39
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
OIL & GAS DRILLING -- CONTINUED
Nabors* 2,100 $ 137
Precision Drilling* 1,100 46
Pride International* 3,100 81
Rowan* 545 19
Todco, Cl A* 425 13
Transocean* 320 18
--------------
381
- -------------------------------------------------------------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 0.6%
Berry Petroleum, Cl A 550 31
Houston Exploration* 300 17
Meridian Resource* 6,690 34
Newfield Exploration* 2,000 85
Noble Energy 10 1
NovaTek GDR 144A* 1,000 20
Penn Virginia 400 22
Pogo Producing 105 6
PTT Exploration and Production ADR 1,600 33
Stone Energy* 1,010 54
Ultra Petroleum* 560 21
Unit* 400 19
Unocal 78 5
--------------
348
- -------------------------------------------------------------
OIL COMPANIES-INTEGRATED -- 2.9%
Amerada Hess 82 10
BP ADR 3,211 211
Chevron 2,987 173
China Petroleum & Chemical ADR 1,300 56
ConocoPhillips 4,520 283
Exxon Mobil 4,768 280
LUKOIL ADR 1,900 78
Marathon Oil 1,295 76
Occidental Petroleum 4,056 334
Petroleo Brasileiro ADR 1,100 58
--------------
1,559
- -------------------------------------------------------------
OIL FIELD MACHINERY & EQUIPMENT -- 0.3%
Cooper Cameron* 1,000 71
Maverick Tube* 550 18
National Oilwell Varco* 610 32
Smith International 540 37
--------------
158
- -------------------------------------------------------------
OIL REFINING & MARKETING -- 0.2%
Giant* 450 18
Tesoro* 550 26
Valero Energy 1,000 83
--------------
127
- -------------------------------------------------------------
OIL-FIELD SERVICES -- 0.5%
BJ Services 670 41
Cal Dive International* 820 48
Core Laboratories* 1,850 60
Schlumberger 460 38
Tidewater 250 10
W-H Energy Services* 2,235 70
Weatherford International* 105 7
--------------
274
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
PIPELINES -- 0.5%
China Gas Holdings ADR* 600 $ 52
El Paso 1,605 19
National Fuel Gas 2,250 69
Questar 1,600 112
Williams 815 17
--------------
269
--------------
TOTAL ENERGY (COST $2,827) 3,234
--------------
- -------------------------------------------------------------
FINANCIAL -- 13.4%
COMMERCIAL BANKS NON-US -- 0.2%
ABSA Group ADR 500 14
Bank Hapoalim GDR 2,500 42
Kookmin Bank ADR 900 47
--------------
103
- -------------------------------------------------------------
COMMERCIAL BANKS-CENTRAL US -- 0.1%
Texas Regional Bancshares, Cl A 350 10
Wintrust Financial 350 19
--------------
29
- -------------------------------------------------------------
COMMERCIAL BANKS-EASTERN US -- 0.2%
Commerce Bancorp 1,555 53
Signature Bank* 1,580 47
--------------
100
- -------------------------------------------------------------
COMMERCIAL BANKS-SOUTHERN US -- 0.2%
Colonial BancGroup 3,950 92
Oriental Financial Group 820 13
--------------
105
- -------------------------------------------------------------
COMMERCIAL BANKS-WESTERN US -- 0.1%
CVB Financial 887 19
Hanmi Financial 900 17
UCBH Holdings 1,700 31
--------------
67
- -------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES -- 0.1%
E. Sun Financial Holdings GDR* 2,100 42
--------------
42
- -------------------------------------------------------------
FINANCE-CONSUMER LOANS -- 0.8%
Asta Funding 600 16
Collegiate Funding Services LLC* 10,460 155
Portfolio Recovery Associates* 1,285 54
SLM 4,356 224
World Acceptance* 600 17
--------------
466
- -------------------------------------------------------------
FINANCE-CREDIT CARD -- 0.7%
Capital One Financial 600 49
MBNA 7,972 201
Metris* 1,475 22
Providian Financial* 5,484 104
--------------
376
- -------------------------------------------------------------
FINANCE-INVESTMENT BANKER/BROKER -- 0.7%
Bear Stearns 681 70
Citigroup 4,279 186
- -------------------------------------------------------------
40
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
FINANCE-INVESTMENT BANKER/BROKER -- CONTINUED
GFI Group* 485 $ 17
Goldman Sachs Group 840 90
Lehman Brothers Holdings 221 23
--------------
386
- -------------------------------------------------------------
FINANCE-MORTGAGE LOAN/BANKER -- 0.2%
Countrywide Financial 3,275 118
--------------
118
- -------------------------------------------------------------
FINANCE-OTHER SERVICES -- 0.3%
Asset Acceptance Capital* 3,500 96
MarketAxess Holdings* 7,595 83
--------------
179
- -------------------------------------------------------------
FINANCIAL GUARANTEE INSURANCE -- 0.2%
MGIC Investment 1,756 121
--------------
121
- -------------------------------------------------------------
INSURANCE BROKERS -- 0.3%
Brown & Brown 1,650 72
Hilb Rogal & Hobbs 600 20
USI Holdings* 7,025 90
--------------
182
- -------------------------------------------------------------
INVESTMENT MANAGEMENT/ADVISORY SERVICES -- 0.2%
Affiliated Managers Group* 1,110 79
Federated Investors, Cl B 505 16
--------------
95
- -------------------------------------------------------------
LIFE/HEALTH INSURANCE -- 0.8%
Ceres Group* 1,250 8
China Life Insurance ADR* 1,400 42
Cigna 2,551 272
KMG America* 10,495 102
UnumProvident 1,540 30
--------------
454
- -------------------------------------------------------------
MULTI-LINE INSURANCE -- 1.5%
ACE 361 17
Allmerica Financial* 1,230 48
Allstate 3,419 210
American International Group 300 18
Assurant 145 5
Hartford Financial Services Group 1,778 143
Metlife 2,364 116
XL Capital, Cl A 3,386 243
--------------
800
- -------------------------------------------------------------
PROPERTY/CASUALTY INSURANCE -- 0.6%
EMC Insurance Group 3,220 60
Fidelity National Financial 300 12
FPIC Insurance Group* 450 15
Philadelphia Consolidated Holding* 350 29
PMA Capital, Cl A* 1,750 16
Safeco 1,600 88
Selective Insurance Group 500 25
WR Berkley 2,000 75
--------------
320
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
REAL ESTATE MANAGEMENT/SERVICES -- 0.3%
CB Richard Ellis Group, Cl A* 1,485 $ 68
Jones Lang LaSalle* 400 20
Trammell Crow* 1,990 50
--------------
138
- -------------------------------------------------------------
REAL ESTATE OPERATION/DEVELOPMENT -- 0.1%
Brookfield Properties 1,596 46
St. Joe 135 11
--------------
57
- -------------------------------------------------------------
REINSURANCE -- 0.5%
Aspen Insurance Holdings 515 15
Axis Capital Holdings 800 23
OdysseyRe Holdings 290 7
PartnerRe 1,350 87
PXRE Group 3,045 78
RenaissanceRe Holdings 1,600 72
--------------
282
- -------------------------------------------------------------
REITS-APARTMENTS -- 0.4%
AvalonBay Communities 486 42
BRE Properties, Cl A 520 23
Camden Property Trust 590 33
Equity Residential 1,459 59
GMH Communities Trust 797 12
Home Properties 587 27
--------------
196
- -------------------------------------------------------------
REITS-DIVERSIFIED -- 0.1%
Correctional Properties Trust 300 9
Digital Realty Trust 346 6
Mission West Properties 376 4
Spirit Finance 1,498 18
Washington Real Estate Investment Trust 532 17
--------------
54
- -------------------------------------------------------------
REITS-HEALTH CARE -- 0.0%
Ventas 733 24
--------------
24
- -------------------------------------------------------------
REITS-HOTELS -- 0.7%
Ashford Hospitality Trust 5,465 65
DiamondRock Hospitality 5,300 64
Host Marriott 2,796 52
LaSalle Hotel Properties 1,212 42
MeriStar Hospitality* 16,270 145
--------------
368
- -------------------------------------------------------------
REITS-MANUFACTURED HOMES -- 0.0%
Equity Lifestyle Properties 309 14
--------------
14
- -------------------------------------------------------------
REITS-MORTGAGE -- 0.2%
HomeBanc 13,055 118
--------------
118
- -------------------------------------------------------------
REITS-OFFICE PROPERTY -- 0.9%
Alexandria Real Estate Equities 279 22
American Financial Realty Trust 1,500 22
- -------------------------------------------------------------
41
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
REITS-OFFICE PROPERTY -- CONTINUED
Arden Realty 474 $ 19
BioMed Realty Trust 511 13
Boston Properties 2,193 167
Capital Automotive 1,159 46
Corporate Office Properties Trust 450 15
HRPT Properties Trust 951 12
Liberty Property Trust 1,006 45
Mack-Cali Realty 490 24
Parkway Properties 450 24
Vornado Realty Trust 679 60
--------------
469
- -------------------------------------------------------------
REITS-REGIONAL MALLS -- 0.5%
CBL & Associates Properties 1,757 81
General Growth Properties 501 23
Mills 256 17
Simon Property Group 2,009 160
--------------
281
- -------------------------------------------------------------
REITS-SHOPPING CENTERS -- 0.3%
Developers Diversified Realty 219 11
Equity One 584 14
Kimco Realty 356 23
Pan Pacific Retail Properties 612 42
Realty Income 592 15
Regency Centers 570 35
Tanger Factory Outlet Centers 518 15
Weingarten Realty Investors 536 21
--------------
176
- -------------------------------------------------------------
REITS-STORAGE -- 0.1%
Public Storage 788 52
U-Store-It Trust 281 6
--------------
58
- -------------------------------------------------------------
REITS-WAREHOUSE/INDUSTRIAL -- 0.2%
Catellus Development 2,200 80
EastGroup Properties 305 13
Prologis 68 3
--------------
96
- -------------------------------------------------------------
S&L/THRIFTS-CENTRAL US -- 0.1%
Franklin Bank* 3,945 73
--------------
73
- -------------------------------------------------------------
S&L/THRIFTS-EASTERN US -- 0.1%
Dime Community Bancshares 700 11
NewAlliance Bancshares 4,055 59
WSFS Financial 100 6
--------------
76
- -------------------------------------------------------------
S&L/THRIFTS-SOUTHERN US -- 0.1%
BankAtlantic Bancorp, Cl A 2,380 43
Ocwen Financial* 1,000 7
--------------
50
- -------------------------------------------------------------
S&L/THRIFTS-WESTERN US -- 0.5%
Washington Federal 3,425 80
Washington Mutual 4,198 178
--------------
258
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
SUPER-REGIONAL BANKS-US -- 1.1%
Bank of America 4,942 $ 215
Wachovia 1,583 80
Wells Fargo 5,135 315
--------------
610
--------------
TOTAL FINANCIAL (COST $6,784) 7,341
--------------
- -------------------------------------------------------------
HEALTH CARE -- 7.9%
DIAGNOSTIC EQUIPMENT -- 0.1%
Cytyc* 1,405 35
Gen-Probe* 650 29
--------------
64
- -------------------------------------------------------------
DISPOSABLE MEDICAL PRODUCTS -- 0.1%
C.R. Bard 470 32
ICU Medical* 975 32
--------------
64
- -------------------------------------------------------------
HEALTH CARE COST CONTAINMENT -- 0.1%
McKesson 1,466 66
--------------
66
- -------------------------------------------------------------
MEDICAL INSTRUMENTS -- 0.5%
Boston Scientific* 970 28
Guidant 752 52
Medtronic 300 16
St. Jude Medical* 2,570 122
Symmetry Medical* 3,240 81
--------------
299
- -------------------------------------------------------------
MEDICAL LABS & TESTING SERVICES -- 0.2%
Covance* 1,650 82
Quest Diagnostics 410 21
--------------
103
- -------------------------------------------------------------
MEDICAL PRODUCTS -- 1.2%
Baxter International 3,919 154
Becton Dickinson 420 23
Biomet 290 11
Cooper 285 20
Henry Schein* 245 10
Johnson & Johnson 4,966 318
Stryker 480 26
Varian Medical Systems* 390 15
Zimmer Holdings* 1,210 100
--------------
677
- -------------------------------------------------------------
MEDICAL-BIOMEDICAL/GENETIC -- 0.7%
Amgen* 670 54
Applera Corp - Celera Genomics Group* 6,400 79
Charles River Laboratories
International* 550 27
Enzon Pharmaceuticals* 4,720 37
Genentech* 1,370 122
Genzyme* 580 43
Georgia Gulf 350 11
Protein Design Labs* 1,235 28
--------------
401
- -------------------------------------------------------------
42
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
MEDICAL-DRUGS -- 1.4%
Abbott Laboratories 470 $ 22
Angiotech Pharmaceuticals* 7,465 101
Bristol-Myers Squibb 4,783 120
Pfizer 8,616 228
Priority Healthcare, Cl B* 2,225 61
Schering-Plough 6,407 133
Sepracor* 160 8
Wyeth 1,485 68
--------------
741
- -------------------------------------------------------------
MEDICAL-GENERIC DRUGS -- 0.5%
Barr Pharmaceuticals* 180 9
Perrigo 5,765 80
Teva Pharmaceutical ADR 6,290 197
Watson Pharmaceuticals* 210 7
--------------
293
- -------------------------------------------------------------
MEDICAL-HMO -- 1.2%
Aetna 760 59
Pacificare Health Systems* 1,290 98
Sierra Health Services* 350 23
UnitedHealth Group 3,090 162
WellPoint* 4,181 296
--------------
638
- -------------------------------------------------------------
MEDICAL-HOSPITALS -- 0.2%
Community Health Systems* 2,000 77
Tenet Healthcare* 530 7
Triad Hospitals* 565 28
--------------
112
- -------------------------------------------------------------
MEDICAL-NURSING HOMES -- 0.1%
Genesis HealthCare* 1,210 54
--------------
54
- -------------------------------------------------------------
MEDICAL-OUTPATIENT/HOME MEDICAL -- 0.1%
Amedisys* 700 27
Lincare Holdings* 435 18
--------------
45
- -------------------------------------------------------------
MEDICAL-WHOLESALE DRUG DISTRIBUTORS -- 0.4%
AmerisourceBergen 1,250 90
Cardinal Health 2,201 131
--------------
221
- -------------------------------------------------------------
OPTICAL SUPPLIES -- 0.2%
Alcon 1,000 114
--------------
114
- -------------------------------------------------------------
PHARMACY SERVICES -- 0.3%
Accredo Health* 1,730 78
Caremark Rx* 1,470 66
--------------
144
- -------------------------------------------------------------
RESPIRATORY PRODUCTS -- 0.1%
Resmed* 280 19
Respironics* 900 34
--------------
53
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
THERAPEUTICS -- 0.4%
CV Therapeutics* 2,290 $ 65
Gilead Sciences* 2,100 94
QLT* 5,800 49
Vicuron Pharmaceuticals* 545 15
--------------
223
- -------------------------------------------------------------
VETERINARY DIAGNOSTICS -- 0.1%
VCA Antech* 1,700 40
--------------
40
--------------
TOTAL HEALTH CARE (COST $4,035) 4,352
--------------
- -------------------------------------------------------------
INDUSTRIAL -- 5.9%
AEROSPACE/DEFENSE -- 0.7%
Armor Holdings* 2,060 84
Curtiss-Wright 300 19
Lockheed Martin 2,486 155
Rockwell Collins 970 47
Teledyne Technologies* 1,970 75
--------------
380
- -------------------------------------------------------------
AEROSPACE/DEFENSE-EQUIPMENT -- 0.3%
Alliant Techsystems* 1,155 84
BE Aerospace* 3,105 55
--------------
139
- -------------------------------------------------------------
AIRLINES -- 0.1%
Southwest Airlines 2,505 36
--------------
36
- -------------------------------------------------------------
BATTERIES/BATTERY SYSTEMS -- 0.2%
Greatbatch* 4,690 114
--------------
114
- -------------------------------------------------------------
BUILDING & CONSTRUCTION PRODUCTS-MISCELLANEOUS -- 0.1%
Dycom Industries* 790 19
Insituform Technologies, Cl A* 3,080 60
--------------
79
- -------------------------------------------------------------
BUILDING PRODUCTS-AIR & HEATING -- 0.0%
York International 240 10
--------------
10
- -------------------------------------------------------------
BUILDING PRODUCTS-CEMENT/AGGREGATE -- 0.2%
Lafarge North America 1,350 94
Texas Industries 300 22
--------------
116
- -------------------------------------------------------------
BUILDING-HEAVY CONSTRUCTION -- 0.2%
Chicago Bridge & Iron 1,350 38
Washington Group International* 810 43
--------------
81
- -------------------------------------------------------------
CONTAINERS-PAPER/PLASTIC -- 0.1%
Sealed Air* 1,350 72
--------------
72
- -------------------------------------------------------------
43
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
DIVERSIFIED MANUFACTURING OPERATIONS -- 0.8%
Actuant, Cl A* 300 $ 14
Brink's 1,845 67
Danaher 240 13
Dover 490 20
ESCO Technologies* 150 16
General Electric 1,500 52
Honeywell International 1,847 73
ITT 380 40
Trinity 320 12
Tyco International 3,618 110
--------------
417
- -------------------------------------------------------------
ELECTRIC PRODUCTS-MISCELLANEOUS -- 0.5%
Emerson Electric 2,187 144
LG Electronics GDR 144A* 1,800 34
Samsung Electronics GDR 144A 410 113
--------------
291
- -------------------------------------------------------------
ELECTRONIC MEASURING INSTRUMENTS -- 0.1%
Flir Systems* 1,495 49
--------------
49
- -------------------------------------------------------------
ELECTRONICS-MILITARY -- 0.1%
EDO 875 27
Engineered Support Systems 625 23
--------------
50
- -------------------------------------------------------------
ENGINEERING/R&D SERVICES -- 0.1%
Shaw Group* 2,775 53
--------------
53
- -------------------------------------------------------------
ENGINES-INTERNAL COMBUSTION -- 0.1%
Cummins 402 34
--------------
34
- -------------------------------------------------------------
FILTRATION/SEPARATION PRODUCTS -- 0.0%
Clarcor 650 20
--------------
20
- -------------------------------------------------------------
GOLD MINING -- 0.3%
AngloGold Ashanti ADR 2,000 69
Goldcorp 4,900 80
Royal Gold 450 8
--------------
157
- -------------------------------------------------------------
HAZARDOUS WASTE DISPOSAL -- 0.1%
American Ecology 2,480 47
Stericycle* 290 17
--------------
64
- -------------------------------------------------------------
IDENTIFICATION SYSTEMS/DEVELOPMENT -- 0.0%
Symbol Technologies 1,030 12
--------------
12
- -------------------------------------------------------------
INDUSTRIAL AUTOMATION/ROBOT -- 0.0%
Rockwell Automation 500 26
--------------
26
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
INSTRUMENTS-SCIENTIFIC -- 0.0%
Applera Corp - Applied Biosystems Group 905 $ 19
--------------
19
- -------------------------------------------------------------
MACHINERY-CONSTRUCTION & MINING -- 0.3%
Caterpillar 1,276 69
Joy Global 825 34
Terex* 1,650 80
--------------
183
- -------------------------------------------------------------
MACHINERY-FARM -- 0.1%
CNH Global 3,600 75
--------------
75
- -------------------------------------------------------------
MACHINERY-GENERAL INDUSTRY -- 0.2%
Wabtec 3,310 81
--------------
81
- -------------------------------------------------------------
MACHINERY-PRINT TRADE -- 0.0%
Zebra Technologies, Cl A* 330 13
--------------
13
- -------------------------------------------------------------
METAL PROCESSORS & FABRICATORS -- 0.1%
Precision Castparts 325 29
--------------
29
- -------------------------------------------------------------
NON-HAZARDOUS WASTE DISPOSAL -- 0.2%
WCA Waste* 10,310 87
--------------
87
- -------------------------------------------------------------
POWER CONVERSION/SUPPLY EQUIPMENT -- 0.4%
American Power Conversion 6,893 194
--------------
194
- -------------------------------------------------------------
TOOLS-HAND HELD -- 0.3%
Stanley Works 2,912 142
--------------
142
- -------------------------------------------------------------
TRANSPORT-EQUIPMENT & LEASING -- 0.2%
GATX 3,010 114
--------------
114
- -------------------------------------------------------------
WIRE & CABLE PRODUCTS -- 0.1%
General Cable* 4,845 80
--------------
80
--------------
TOTAL INDUSTRIAL (COST $2,935) 3,217
--------------
- -------------------------------------------------------------
SERVICES -- 2.2%
ADVERTISING AGENCIES -- 0.0%
Interpublic Group* 1,090 14
--------------
14
- -------------------------------------------------------------
ADVERTISING SERVICES -- 0.1%
Getty Images* 460 37
--------------
37
- -------------------------------------------------------------
44
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
COMMERCIAL SERVICES -- 0.1%
Alliance Data Systems* 640 $ 27
ChoicePoint* 615 27
Quanta Services* 1,695 18
--------------
72
- -------------------------------------------------------------
COMMERCIAL SERVICES-FINANCE -- 0.2%
Paychex 900 31
Wright Express* 3,515 74
--------------
105
- -------------------------------------------------------------
COMPUTER SERVICES -- 0.5%
Anteon International* 620 29
Cognizant Technology Solutions, Cl A* 2,885 142
DST Systems* 295 15
Manhattan Associates* 3,235 67
--------------
253
- -------------------------------------------------------------
E-COMMERCE/SERVICES -- 0.2%
eBay* 1,980 83
Monster Worldwide* 880 27
--------------
110
- -------------------------------------------------------------
ELECTRIC-INTEGRATED -- 0.0%
El Paso Electric* 800 17
--------------
17
- -------------------------------------------------------------
HUMAN RESOURCES -- 0.1%
Hewitt, Cl A* 740 20
Medical Staffing Network Holdings* 8,720 50
--------------
70
- -------------------------------------------------------------
RENTAL AUTO/EQUIPMENT -- 0.1%
Aaron Rents 1,250 31
Dollar Thrifty Automotive Group* 400 12
Rent-A-Center* 1,950 41
--------------
84
- -------------------------------------------------------------
RESEARCH & DEVELOPMENT -- 0.2%
Pharmaceutical Product Development* 550 31
PRA International* 2,940 89
--------------
120
- -------------------------------------------------------------
SCHOOLS -- 0.2%
Apollo Group, Cl A* 1,110 83
Education Management* 485 17
--------------
100
- -------------------------------------------------------------
TELEPHONE-INTEGRATED -- 0.5%
AT&T 201 4
Tele Norte Leste Participacoes ADR 2,000 31
Telefonos de Mexico SA
de CV ADR, Cl A 2,000 39
Valor Communications Group 6,235 87
Verizon Communications 2,624 90
--------------
251
--------------
TOTAL SERVICES (COST $1,156) 1,233
--------------
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
TECHNOLOGY -- 7.5%
APPLICATIONS SOFTWARE -- 0.5%
Citrix Systems* 740 $ 18
Infosys Technologies ADR 840 60
Intuit* 255 12
Microsoft 2,098 54
Quest Software* 1,795 25
Satyam Computer Services ADR 3,150 90
--------------
259
- -------------------------------------------------------------
B2B/E-COMMERCE -- 0.1%
webMethods* 5,720 35
--------------
35
- -------------------------------------------------------------
CELLULAR TELECOMMUNICATIONS -- 0.4%
China Mobile Hong Kong ADR 2,200 44
Mobile Telesystems ADR 1,800 64
Nextel Communications, Cl A* 1,845 64
Nextel Partners, Cl A* 685 17
NII Holdings* 650 49
--------------
238
- -------------------------------------------------------------
COMPUTER AIDED DESIGN -- 0.2%
Ansys* 700 26
Autodesk 1,700 58
Parametric Technology* 6,535 45
--------------
129
- -------------------------------------------------------------
COMPUTERS -- 0.4%
Apple Computer* 1,230 53
Dell* 810 33
International Business Machines 1,754 146
--------------
232
- -------------------------------------------------------------
COMPUTERS-INTEGRATED SYSTEMS -- 0.1%
MTS Systems 900 36
--------------
36
- -------------------------------------------------------------
COMPUTERS-MEMORY DEVICES -- 0.2%
EMC* 2,640 36
Maxtor* 4,620 27
Network Appliance* 1,200 31
Western Digital* 2,070 31
--------------
125
- -------------------------------------------------------------
DATA PROCESSING/MANAGEMENT -- 0.3%
Dun & Bradstreet* 225 15
MoneyGram International 4,235 89
NAVTEQ* 595 26
SEI Investments 365 14
--------------
144
- -------------------------------------------------------------
DECISION SUPPORT SOFTWARE -- 0.1%
Cognos* 910 36
NetIQ* 3,530 40
--------------
76
- -------------------------------------------------------------
45
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
ELECTRONIC COMPONENTS-MISCELLANEOUS -- 0.5%
Celestica* 1,195 $ 14
CTS 3,525 43
Flextronics International* 875 12
Gentex 1,030 18
Hon Hai Precision GDR 144A 7,300 82
Jabil Circuit* 750 23
LG Philips LCD ADR* 3,600 83
NAM TAI Electronics 450 11
Sypris Solutions 550 8
--------------
294
- -------------------------------------------------------------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 1.0%
ATI Technologies* 2,390 30
Broadcom, Cl A* 2,660 114
Fairchild Semiconductor International* 240 4
Integrated Silicon Solutions* 5,165 44
Intel 4,265 116
International Rectifier* 460 22
Intersil, Cl A 355 7
MEMC Electronic Materials* 4,200 71
Nvidia* 1,190 32
Omnivision Technologies* 2,080 29
QLogic* 1,600 50
Xilinx 490 14
Zoran* 2,205 32
--------------
565
- -------------------------------------------------------------
ELECTRONIC DESIGN AUTOMATION -- 0.0%
Cadence Design Systems* 700 11
--------------
11
- -------------------------------------------------------------
ELECTRONIC FORMS -- 0.0%
Adobe Systems 410 12
--------------
12
- -------------------------------------------------------------
ENTERPRISE SOFTWARE/SERVICES -- 0.6%
Informatica* 8,345 88
MicroStrategy, Cl A* 225 17
Oracle* 10,014 136
SAP ADR 1,350 58
SSA Global Technologies* 1,860 25
--------------
324
- -------------------------------------------------------------
IDENTIFICATION SYSTEMS/DEVELOPMENT -- 0.0%
Fargo Electronics* 1,050 19
--------------
19
- -------------------------------------------------------------
INTERNET APPLICATION SOFTWARE -- 0.1%
Verity* 3,935 40
--------------
40
- -------------------------------------------------------------
INTERNET INFRASTRUCTURE EQUIPMENT -- 0.1%
Avocent* 885 31
--------------
31
- -------------------------------------------------------------
INTERNET INFRASTRUCTURE SOFTWARE -- 0.1%
Radware* 4,700 80
--------------
80
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
INTERNET SECURITY -- 0.3%
Symantec* 5,556 $ 122
VeriSign* 565 15
--------------
137
- -------------------------------------------------------------
NETWORKING PRODUCTS -- 0.3%
Cisco Systems* 4,156 80
Foundry Networks* 5,865 69
Juniper Networks* 620 15
--------------
164
- -------------------------------------------------------------
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUITS -- 0.3%
Maxim Integrated Products 240 10
Standard Microsystems* 1,320 33
Taiwan Semiconductor
Manufacturing ADR 6,510 56
United Microelectronics ADR 11,105 43
--------------
142
- -------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT -- 0.0%
Applied Materials* 800 15
--------------
15
- -------------------------------------------------------------
SOFTWARE TOOLS -- 0.1%
Borland Software* 5,730 38
--------------
38
- -------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT -- 0.1%
Comtech Telecommunications* 350 12
Comverse Technology* 980 25
Scientific-Atlanta 500 19
--------------
56
- -------------------------------------------------------------
TELECOMMUNICATIONS SERVICES -- 0.5%
Amdocs* 4,690 139
Iowa Telecommunications Services 3,250 62
Telekomunikasi Indonesia ADR* 2,200 51
--------------
252
- -------------------------------------------------------------
TELEPHONE-INTEGRATED -- 0.1%
Philippine Long Distance Telephone ADR* 1,600 46
--------------
46
- -------------------------------------------------------------
WEB HOSTING/DESIGN -- 0.0%
Macromedia* 545 22
--------------
22
- -------------------------------------------------------------
WEB PORTALS/ISP -- 0.5%
Google, Cl A* 470 135
Yahoo!* 3,640 121
--------------
256
- -------------------------------------------------------------
WIRELESS EQUIPMENT -- 0.6%
Motorola 4,019 85
Nokia ADR 9,790 156
Qualcomm 2,560 101
--------------
342
--------------
TOTAL TECHNOLOGY (COST $3,773) 4,120
--------------
- -------------------------------------------------------------
46
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
TRANSPORTATION -- 1.1%
AIRLINES -- 0.0%
Skywest 945 $ 19
--------------
19
- -------------------------------------------------------------
TRANSPORT-MARINE -- 0.3%
CP Ships 1,855 33
General Maritime* 700 27
Kirby* 350 17
Overseas Shipholding Group 1,350 84
--------------
161
- -------------------------------------------------------------
TRANSPORT-RAIL -- 0.5%
Burlington Northern Santa Fe 2,495 135
Canadian Pacific Railway 2,000 78
CSX 125 6
Norfolk Southern 1,671 62
--------------
281
- -------------------------------------------------------------
TRANSPORT-SERVICES -- 0.1%
Offshore Logistics* 700 25
United Parcel Service, Cl B 362 27
--------------
52
- -------------------------------------------------------------
TRANSPORT-TRUCK -- 0.2%
Celadon Group* 350 7
CNF 400 21
JB Hunt Transport Services 4,300 84
US Xpress, Cl A* 300 4
--------------
116
--------------
TOTAL TRANSPORTATION (COST $592) 629
--------------
- -------------------------------------------------------------
UTILITIES -- 1.7%
ELECTRIC-GENERATION -- 0.1%
AES* 3,404 55
--------------
55
- -------------------------------------------------------------
ELECTRIC-INTEGRATED -- 1.1%
Alliant Energy 245 7
Duke Energy 4,562 135
Entergy 2,653 207
MGE Energy 555 21
OGE Energy 3,300 100
Pike Electric 1,800 26
Public Service Enterprise Group 284 18
TXU 900 78
--------------
592
- -------------------------------------------------------------
ENERGY-ALTERNATE SOURCES -- 0.0%
Headwaters* 400 17
--------------
17
- -------------------------------------------------------------
GAS-DISTRIBUTION -- 0.2%
Energen 1,200 42
UGI 1,400 41
--------------
83
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
INDEPENDENT POWER PRODUCER -- 0.0%
Reliant Energy* 1,650 $ 22
--------------
22
- -------------------------------------------------------------
POWER CONVERSION/SUPPLY EQUIPMENT -- 0.3%
American Electric Power 2,787 108
Delta Electronics GDR 5,900 51
--------------
159
--------------
TOTAL UTILITIES (COST $838) 928
--------------
TOTAL COMMON STOCK (COST $29,742) 32,276
--------------
- -------------------------------------------------------------
FOREIGN COMMON STOCK -- 16.1%
AUSTRALIA -- 1.6%
Aristocrat Leisure 4,000 38
Australia & New Zealand Banking Group 10,934 178
BHP Billiton 9,336 137
Insurance Australia Group 14,800 69
James Hardie 5,000 34
Rinker Group 22,500 258
Westpac Banking 8,800 132
Zinifex* 4,900 12
--------------
TOTAL AUSTRALIA 858
--------------
- -------------------------------------------------------------
AUSTRIA -- 0.2%
Andritz 200 19
EVN* 800 61
Voestalpine 300 22
--------------
TOTAL AUSTRIA 102
--------------
- -------------------------------------------------------------
BELGIUM -- 0.7%
Belgacom 200 7
Dexia* 4,200 95
Fortis 8,100 237
KBC Groupe 700 56
--------------
TOTAL BELGIUM 395
--------------
- -------------------------------------------------------------
CANADA -- 0.6%
Canadian National Railway 400 26
Canadian Natural Resource 2,400 100
EnCana 1,800 74
Gerdau Ameristeel 2,000 10
Penn West Energy Trust* 900 23
Petro-Canada 400 29
Teck Cominco, Cl B 100 4
TELUS 1,500 52
--------------
TOTAL CANADA 318
--------------
- -------------------------------------------------------------
DENMARK -- 0.2%
Dampskibsselskabet Torm,
Cl A* 250 13
Jyske Bank* 1,500 71
--------------
TOTAL DENMARK 84
--------------
- -------------------------------------------------------------
47
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
FINLAND -- 0.2%
Elisa* 350 $ 6
Nokia 5,750 92
Rautaruukki 600 10
Sampo, Cl A 1,600 25
--------------
TOTAL FINLAND 133
--------------
- -------------------------------------------------------------
FRANCE -- 1.2%
Assurances Generales de France 200 17
AXA 1,000 27
BNP Paribas 1,000 72
France Telecom* 650 20
Pagesjaunes Group* 350 9
Societe Generale 1,630 179
Total 265 67
Ubisoft Entertainment* 300 17
Vivendi Universal 7,600 242
--------------
TOTAL FRANCE 650
--------------
- -------------------------------------------------------------
GERMANY -- 0.9%
Adidas-Salomon 65 12
BASF 110 8
Deutsche Boerse 1,309 115
E.ON 2,304 214
Freenet.de* 194 5
Mobilcom 2,472 62
Schering 198 12
Schwarz Pharma* 277 14
Tui* 860 23
--------------
TOTAL GERMANY 465
--------------
- -------------------------------------------------------------
GREECE -- 0.0%
Intracom 990 5
--------------
TOTAL GREECE 5
--------------
- -------------------------------------------------------------
HONG KONG -- 0.2%
Orient Overseas International 9,000 42
Solomon Systech* 98,000 31
Television Broadcasts 6,000 36
Vtech Holdings 5,000 14
--------------
TOTAL HONG KONG 123
--------------
- -------------------------------------------------------------
ITALY -- 0.7%
Banca Intesa 12,700 62
Capitalia 14,100 82
ENI 5,400 153
ERG* 3,600 77
--------------
TOTAL ITALY 374
--------------
- -------------------------------------------------------------
JAPAN -- 3.8%
Bosch Auto Systems 4,000 23
Canon 3,300 164
Chubu Electric Power 11,300 274
Fujitsu Frontech 5,600 62
Honda Motor 6,000 309
Kawasaki Kisen Kaisha 10,075 62
Keihin 700 12
Komatsu 4,000 38
Marubeni 57,000 212
Mitsui OSK Lines 38,600 248
Mizohu Financial 32 145
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
JAPAN -- CONTINUED
Nippon Steel 22,400 $ 57
Nippon Yusen KK 14,000 81
Nissan Motor 200 2
Santen Pharmaceutical 1,535 35
Sumitomo Mitsui Financial 1 7
Toyota Tsusho 4,397 72
Yamaha Motor 14,200 264
--------------
TOTAL JAPAN 2,067
--------------
- -------------------------------------------------------------
NETHERLANDS -- 0.4%
Aegon 8,000 115
ING Groep 4,225 128
--------------
TOTAL NETHERLANDS 243
--------------
- -------------------------------------------------------------
NEW GUINEA -- 0.0%
Oil Search* 6,600 17
--------------
TOTAL NEW GUINEA 17
--------------
- -------------------------------------------------------------
NEW ZEALAND -- 0.3%
Fletcher Building 31,743 158
--------------
TOTAL NEW ZEALAND 158
--------------
- -------------------------------------------------------------
NORWAY -- 0.3%
Statoil 7,500 163
--------------
TOTAL NORWAY 163
--------------
- -------------------------------------------------------------
PORTUGAL -- 0.0%
Banco Comercial Portugues* 9,600 25
--------------
TOTAL PORTUGAL 25
--------------
- -------------------------------------------------------------
SPAIN -- 1.2%
Banco Santander Central Hispano 27,333 339
Gestevision Telecinco 800 19
Obrascon Huarte Lain* 900 13
Repsol YPF 9,300 261
--------------
TOTAL SPAIN 632
--------------
- -------------------------------------------------------------
SWITZERLAND -- 0.4%
Credit Suisse Group 440 19
Geberit* 10 7
Swiss Life Holding* 80 11
Xstrata* 2,500 53
Zurich Financial 870 155
--------------
TOTAL SWITZERLAND 245
--------------
- -------------------------------------------------------------
UNITED KINGDOM -- 3.2%
Alliance Unichem 4,800 70
Antofagasta 5,827 138
Ashtead* 22,619 42
AstraZeneca 1,600 72
Aviva 1,000 12
Barclays 3,200 31
BHP Billiton 4,300 61
BP 500 6
British Airways* 5,100 25
British American Tobacco 2,100 42
Corus Group* 20,800 17
Gallaher Group 8,875 127
Halfords Group* 1,900 10
HBOS 8,670 132
- -------------------------------------------------------------
48
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Shares/Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
UNITED KINGDOM -- CONTINUED
HSBC Holdings 300 $ 5
International Power 17,000 63
Kelda Group 1,400 18
Lloyds TSB Group 10,000 85
National Express Group* 5,800 89
Next 466 13
O2 72,200 177
Photo-me International 6,000 12
Rio Tinto 500 17
Royal Bank of Scotland 3,600 107
Royal Dutch Shell, Cl B* 3,448 110
SABMiller 2,700 47
Scottish & Southern Energy 3,100 53
Sheffield Insulation* 1,600 19
Shire Pharmaceuticals 2,600 30
Tesco 3,200 18
Vodafone Group 39,000 101
--------------
TOTAL UNITED KINGDOM 1,749
--------------
TOTAL FOREIGN COMMON STOCK (COST $8,357) 8,806
--------------
- -------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 3.8%
U.S. Treasury Bond
7.500%, 11/15/16 $ 65 83
5.375%, 02/15/31 90 102
U.S. Treasury Note
5.750%, 08/15/10 220 236
4.125%, 05/15/15 860 849
3.875%, 05/15/09 40 39
3.375%, 02/15/08 200 197
3.375%, 09/15/09 595 578
--------------
TOTAL U.S. TREASURY OBLIGATIONS (COST $2,102) 2,084
--------------
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS -- 6.7%
Federal Home Loan Mortgage Corporation
6.000%, 08/01/29 14 14
6.000%, 08/01/34 67 68
6.000%, 10/01/34 39 39
5.500%, 09/01/17 18 18
5.500%, 09/01/19 65 66
5.500%, 10/01/34 27 27
5.500%, 01/01/35 48 48
5.500%, 02/01/35 83 84
5.500%, 03/01/35 97 97
5.500%, 06/01/35 303 305
5.000%, 05/01/20 545 547
Federal National Mortgage Association
6.500%, 03/01/35 204 211
6.000%, 09/01/34 367 375
6.000%, 12/01/34 69 71
6.000%, 12/01/34 37 38
5.500%, 03/01/20 46 47
5.500%, 07/01/33 621 624
5.500%, 10/01/34 21 21
5.500%, 03/01/35 121 122
5.500%, 06/01/35 303 305
5.000%, 10/01/19 56 56
- -------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCY MORTGAGE-BACKED
OBLIGATIONS -- CONTINUED
Federal National Mortgage Association TBA
5.000%, 08/01/34 $400 $ 394
Government National Mortgage Association
6.000%, 12/15/34 29 30
6.000%, 02/20/35 23 24
5.500%, 01/20/35 57 58
--------------
TOTAL U.S. GOVERNMENT AGENCY
MORTGAGE-BACKED OBLIGATIONS (COST $3,716) 3,689
--------------
- -------------------------------------------------------------
CORPORATE BONDS -- 3.9%
Alltel
4.656%, 05/17/07 85 85
America Movil
6.375%, 03/01/35 20 19
American General Finance, Ser G MTN
5.375%, 09/01/09 35 36
Amgen
4.000%, 11/18/09 40 39
AT&T Wireless Services
8.750%, 03/01/31 25 35
8.125%, 05/01/12 25 29
Bank One
5.900%, 11/15/11 55 58
Baxter International
5.250%, 05/01/07 45 46
BP Amoco
8.500%, 04/01/12 50 61
Capital One Financial
4.800%, 02/21/12 30 29
Carnival
3.750%, 11/15/07 40 39
Comcast
7.625%, 02/15/08 20 21
5.300%, 01/15/14 65 66
Consolidated Natural Gas
6.875%, 10/15/26 30 34
Countrywide Home Loan MTN
3.250%, 05/21/08 40 39
DaimlerChrysler
4.750%, 01/15/08 25 25
FedEx
9.650%, 06/15/12 40 51
FPL Group Capital, Ser A
4.086%, 02/16/07 5 5
General Electric Capital, Ser A MTN
6.875%, 11/15/10 60 66
Georgia Power, Ser J
4.875%, 07/15/07 35 35
Hewlett-Packard
5.750%, 12/15/06 50 51
HSBC Finance
4.750%, 04/15/10 45 45
John Deere Capital, Ser D MTN
4.400%, 07/15/09 45 45
Kinder Morgan
6.500%, 09/01/12 45 49
- -------------------------------------------------------------
49
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
CORPORATE BONDS -- CONTINUED
Lockheed Martin
7.200%, 05/01/36 $ 50 $ 61
Marathon Oil
5.375%, 06/01/07 50 51
Merrill Lynch, Ser C MTN
4.250%, 02/08/10 45 44
Metlife
5.000%, 06/15/15 30 30
Midamerican Energy Holdings
5.875%, 10/01/12 40 42
3.500%, 05/15/08 45 43
Motorola
8.000%, 11/01/11 35 41
4.608%, 11/16/07 30 30
PNC Funding
4.200%, 03/10/08 20 20
Prudential Financial MTN
3.750%, 05/01/08 5 5
Prudential Financial, Ser B MTN
5.100%, 09/20/14 40 40
PSE&G Power
6.950%, 06/01/12 65 72
Reed Elsevier Capital
6.125%, 08/01/06 25 25
Schering-Plough
6.750%, 12/01/33 40 47
SLM, Ser A MTN
4.500%, 07/26/10 50 49
3.950%, 08/15/08 20 20
Southern Company Capital Funding, Ser A
5.300%, 02/01/07 10 10
Sprint Capital
6.000%, 01/15/07 30 31
Time Warner
7.625%, 04/15/31 40 49
Univision Communications
3.875%, 10/15/08 60 58
Verizon Wireless Capital
5.375%, 12/15/06 60 61
Washington Mutual Financial
6.875%, 05/15/11 45 50
Wellpoint
5.000%, 12/15/14 30 30
3.750%, 12/14/07 30 29
Weyerhaeuser
5.950%, 11/01/08 35 36
Wyeth
5.500%, 02/01/14 50 52
Xcel Energy
7.000%, 12/01/10 50 55
XL Capital
5.250%, 09/15/14 35 35
--------------
TOTAL CORPORATE BONDS (COST $2,145) 2,124
--------------
- -------------------------------------------------------------
FOREIGN BONDS -- 0.9%
European Investment Bank (JPY)
1.400%, 06/20/17 6 53
Netherlands Government (EUR)
4.250%, 07/15/13 266 349
U.K. Treasury Bond (GBP)
4.250%, 03/07/36 50 87
--------------
TOTAL FOREIGN BONDS (COST $505) 489
--------------
- -------------------------------------------------------------
Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
ASSET-BACKED SECURITIES -- 0.5%
HOME EQUITY LOANS -- 0.5%
Citigroup Commercial Mortgage,
Ser 2004-C2, Cl A3
4.380%, 10/15/41 $ 60 $ 58
GE Capital Commercial Mortgage,
Ser 2004-C3, Cl A3
4.865%, 07/10/39 40 40
JP Morgan Chase CMO,
Ser 2005-lDP1, Cl A2
4.625%, 03/15/46 70 70
JP Morgan Chase Commercial Mortgage,
Ser 2004-CBX, Cl A4
4.529%, 01/12/37 25 25
Residential Asset Mortgage Program,
Ser 2004-RS12, Cl AI2
3.767%, 02/25/27 10 10
Wachovia Bank Commercial Mortgage Trust,
Ser 2003-c5, Cl A2
3.989%, 06/15/35 55 52
--------------
255
--------------
TOTAL ASSET-BACKED SECURITIES (COST $257) 255
--------------
- -------------------------------------------------------------
MORTGAGE RELATED -- 0.3%
Banc of America CMO,
Ser 2003-2, Cl A2
4.342%, 03/11/41 20 20
Countrywide Home Loans CMO,
Ser 2004-18, Cl A1
6.000%, 10/25/34 90 91
TXU Electric Delivery Transition ABS,
Ser 2004-1, Cl A2
4.810%, 11/17/14 50 50
--------------
TOTAL MORTGAGE RELATED (COST $161) 161
--------------
- -------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 0.2%
Federal Home Loan Mortgage Corporation
5.875%, 03/21/11 55 58
Federal National Mortgage Association
5.125%, 01/02/14 55 56
--------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (COST $116) 114
--------------
- -------------------------------------------------------------
REPURCHASE AGREEMENT -- 8.6%
Deutsche Bank 3.29%, dated 07/29/05,
to be repurchased on 08/01/05,
repurchase price $4,730,818
(collateralized by a U.S.
Government obligation, par
value $4,965,000, 0.000%,
04/18/06 total market value
$4,824,491) (A) 4,731 4,731
--------------
TOTAL REPURCHASE AGREEMENT (COST $4,731) 4,731
--------------
TOTAL INVESTMENTS -- 99.6% (COST $51,832) 54,729
--------------
- -------------------------------------------------------------
50
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Description Value (000)
- -------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 0.4%
Foreign Currency (Cost $31) $ (31)
Receivable for Fund Shares Sold 1,482
Receivable from Investment Adviser 3
Payable for Investment Securities Purchased (1,201)
Payable for Distribution Fees (27)
Payable for Administration Fees (5)
Payable for Insurance Expense to Affiliates (96)
Other Assets and Liabilities, Net 66
--------------
TOTAL OTHER ASSETS AND LIABILITIES 191
--------------
NET ASSETS -- 100.0% $ 54,920
==============
- -------------------------------------------------------------
NET ASSETS:
Paid-in-Capital ($0.001 par value) $ 52,014
Undistributed net investment income 3
Accumulated net realized gain on investments 14
Unrealized appreciation on investments 2,897
Unrealized depreciation on forward foreign
currency contracts (8)
--------------
NET ASSETS $ 54,920
==============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS
($6,278,821 / 554,360 SHARES) $11.33
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A
($17,735,948 / 1,569,929 SHARES) $11.30
======
MAXIMUM OFFERING
PRICE PER SHARE -- CLASS A
($11.30/94.25%) $11.99
======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS C+
($30,905,715 / 2,749,806 SHARES) $11.24
======
* Non-income producing security.
+ Class C shares have a contingent deferred sales charge.
For a description of a possible sales charge, please see
the Portfolio's prospectus.
144A -- Security sold within the terms of a private placement
memorandum, which is exempt from registration under
Section 3A-4, 4(2) or 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in
that program or other accredited investors. On July 31,
2005 the value of these securities amounted to $249,107,
representing 0.5% of the net assets of the Portfolio.
(A) -- Tri-party repurchase agreement
ABS -- Asset-Backed Security
ADR -- American Depositary Receipt
Cl -- Class
CMO -- Collateralized Mortgage Obligation
EUR -- Euro
GBP -- British Pound
GDR -- Global Depositary Receipt
JPY -- Japanese Yen
LLC -- Limited Liability Company
MTN -- Medium-Term Note
REITs -- Real Estate Investment Trusts
Ser -- Series
TBA -- Security traded under delayed delivery commitments
settling after July 31, 2005. Income on this security
will not be earned until settlement date.
Cost figures are shown with "000's" omitted.
The accompanying notes are an integral part of the financial statements.
51
OLD MUTUAL ADVISOR FUNDS
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
PORTFOLIO PROFILE
For the 10-month period ended July 31, 2005, the Old Mutual Asset Allocation
Growth Portfolio (Institutional Class) returned 17.13% at net asset value. By
comparison, the Portfolio's benchmark, the S&P 500, gained 12.37% for the same
period. Performance for all share classes is included on the following page.
FACTORS CONTRIBUTING TO PORTFOLIO PERFORMANCE
The Portfolio held approximately 20% of its holdings in international equities
as of the end of the period and these positions were the largest contributor to
its strong returns. QBE Insurance Group, an Australian general insurance and
reinsurance company, was one of the Portfolio's best performing securities
during the period. Securities in the energy and natural resources sectors,
including Royal Dutch Shell PLC (United Kingdom), Canadian Natural Resources LTD
(Canada), and Statoil ASA (Norway), also made positive contributions to returns.
Issuers such as Telecommunications company TeliaSonera (Sweden) and Glory, Ltd.
(Japan), a money handling company, detracted from returns and were sold from the
Portfolio.
The Portfolio held approximately one third of its domestic holdings in large-cap
securities; positions in large-cap value securities in particular had a positive
impact on performance. Notable domestic energy stocks included ConocoPhillips,
Occidental Petroleum and Valero Energy. Holdings in real estate securities also
contributed to the Portfolio's performance, most notably Simon Property Group, a
real estate investment trust that primarily invests in regional malls and outlet
centers. However, we believe that rising interest rates will result in a
downward adjustment in the housing and real estate markets and the Portfolio's
target allocation to real estate securities was reduced during the period.
MARKET ENVIRONMENT
The period was marked by extreme swings in the broad market as investors sorted
through the litany of news and events, including oil prices, interest rates and
the war in Iraq. Economic indicators remain strong, including gross domestic
product, and a relatively healthy U.S. economy provided a boost to the rest of
the world as U.S. consumer demand remained strong and the U.S. dollar
strengthened versus the Euro and other foreign currencies.
INVESTMENT OUTLOOK
Although we continue to overweight value stocks in all market-cap areas, we are
keeping a close watch on growth versus value indicators. Valuation spreads
between growth and value have compressed and there may be a benefit from an
inflow of liquidity into the growth style.
52
OLD MUTUAL ADVISOR FUNDS
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
ASSET CLASS WEIGHTINGS AS OF JULY 31, 2005
[Pie chart omitted -- plot points are as follows:]
Common Stock 74%
Foreign Common Stock 20%
Repurchase Agreement 6%
% of Total Portfolio Investments
TOTAL RETURN AS OF JULY 31, 2005
Since
Inception*
- -------------------------------------------------------------
Institutional Class 17.13%
- -------------------------------------------------------------
Class A with front-end load 10.19%
- -------------------------------------------------------------
Class A without load 16.91%
- -------------------------------------------------------------
Class C with deferred sales load 15.15%
- -------------------------------------------------------------
Class C without deferred sales load 16.15%
- -------------------------------------------------------------
S&P 500 Index 12.37%
- -------------------------------------------------------------
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. Information about these
performance results and the comparative index can be found on page 2.
* Not annualized, inception date 9/30/04
PORTFOLIO PERFORMANCE
[Line chart omitted -- plot points are as follows:]
Old Mutual
Old Mutual Old Mutual Asset
Asset Asset Allocation
Allocation Allocation Growth
Growth Growth Portfolio,
Portfolio, Portfolio, Institutional S&P 500
Class A Class C Class Index
- -----------------------------------------------------------------------------------------------------
9/30/2004 $ 9425 $10000 $10000 $10000
10/31/2004 9510 10080 10090 10153
11/30/2004 10094 10700 10710 10564
12/31/2004 10462 11074 11101 10923
1/31/2005 10179 10764 10812 10657
2/28/2005 10499 11104 11152 10881
3/31/2005 10310 10895 10952 10688
4/30/2005 10037 10605 10671 10485
5/31/2005 10339 10914 10991 10818
6/30/2005 10556 11135 11221 10834
7/31/2005 11019 11515 11711 11237
PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. The graph above compares
an investment made in each of the Portfolio's Class shares on the inception date
of 9/30/04 to an investment made in an unmanaged securities index on that date.
The performance of the Portfolio's Class A shares shown in the line graph takes
into account the maximum initial sales charge. Performance for the Portfolio's
Class C shares assumes payment of a contingent deferred sales load, which is
charged on investment held less than one year. The Portfolio's performance in
this chart and the performance table assumes reinvestment of dividends and
capital gain distributions but does not reflect the deduction of taxes that a
shareholder would pay on Portfolio distributions or on the redemption of
Portfolio shares.
53
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
COMMON STOCK -- 73.8%
BASIC MATERIALS -- 2.5%
AGRICULTURAL CHEMICALS -- 0.2%
Agrium 2,500 $ 57
Potash Corporation of Saskatchewan 140 15
--------------
72
- -------------------------------------------------------------
BUILDING & CONSTRUCTION PRODUCTS-MISCELLANEOUS -- 0.0%
USG* 250 12
--------------
12
- -------------------------------------------------------------
CHEMICALS-DIVERSIFIED -- 0.8%
Dow Chemical 1,251 60
Lyondell Chemical 2,536 71
Nova Chemicals 950 33
Olin 3,285 60
--------------
224
- -------------------------------------------------------------
CHEMICALS-PLASTICS -- 0.1%
Spartech 1,305 24
--------------
24
- -------------------------------------------------------------
CHEMICALS-SPECIALTY -- 0.1%
Eastman Chemical 75 4
Hercules* 1,685 24
--------------
28
- -------------------------------------------------------------
COAL -- 0.1%
Peabody Energy 300 20
--------------
20
- -------------------------------------------------------------
CONTAINERS-METAL/GLASS -- 0.0%
Crown Holdings* 750 12
--------------
12
- -------------------------------------------------------------
DIVERSIFIED MINERALS -- 0.1%
Cia Vale do Rio Doce ADR 1,100 36
--------------
36
- -------------------------------------------------------------
INDUSTRIAL GASES -- 0.2%
Air Products & Chemicals 160 10
Airgas 550 16
Praxair 440 22
--------------
48
- -------------------------------------------------------------
METAL-COPPER -- 0.2%
Phelps Dodge 460 49
--------------
49
- -------------------------------------------------------------
PAPER & RELATED PRODUCTS -- 0.3%
Domtar 480 4
Neenah Paper 1,865 61
Schweitzer-Mauduit International 250 7
Smurfit-Stone Container* 1,340 16
--------------
88
- -------------------------------------------------------------
PETROCHEMICALS -- 0.2%
Reliance GDR 144A 1,500 48
--------------
48
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
STEEL-PRODUCERS -- 0.2%
- -------------------------------------------------------------
Nucor 750 $ 42
POSCO 400 20
Schnitzer Steel, Cl A 250 7
--------------
69
- -------------------------------------------------------------
STEEL-SPECIALTY -- 0.0%
Allegheny Technologies 286 8
--------------
8
--------------
TOTAL BASIC MATERIALS (COST $689) 738
--------------
- -------------------------------------------------------------
CONSUMER CYCLICAL -- 9.6%
APPAREL MANUFACTURERS -- 0.4%
Carter's* 495 30
Coach* 1,010 36
Polo Ralph Lauren 830 41
VF 157 9
--------------
116
- -------------------------------------------------------------
ATHLETIC FOOTWEAR -- 0.1%
Nike, Cl B 380 32
--------------
32
- -------------------------------------------------------------
AUDIO/VIDEO PRODUCTS -- 0.0%
Dolby Laboratories, Cl A* 470 9
--------------
9
- -------------------------------------------------------------
AUTO-CARS/LIGHT TRUCKS -- 0.2%
Tata Motors ADR 4,600 52
--------------
52
- -------------------------------------------------------------
AUTO/TRUCK PARTS & EQUIPMENT-ORIGINAL -- 0.0%
BorgWarner 240 14
--------------
14
- -------------------------------------------------------------
BROADCAST SERVICES/PROGRAMMING -- 0.2%
Citadel Broadcasting* 950 12
Liberty Global, Cl A* 270 13
Nexstar Broadcasting Group, Cl A* 6,110 34
--------------
59
- -------------------------------------------------------------
BUILDING-RESIDENTIAL/COMMERCIAL -- 0.5%
DR Horton 1,300 53
KB Home 690 57
Pulte Homes 350 33
--------------
143
- -------------------------------------------------------------
CABLE TV -- 0.5%
Insight Communications, Cl A* 2,735 32
Mediacom Communications,
Cl A* 17,355 121
--------------
153
- -------------------------------------------------------------
CASINO SERVICES -- 0.4%
Harrah's Entertainment 600 47
International Game Technology 1,065 29
Scientific Games, Cl A* 1,390 38
--------------
114
- -------------------------------------------------------------
54
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
CRUISE LINES -- 0.5%
Carnival 2,818 $ 147
Royal Caribbean Cruises 281 13
--------------
160
- -------------------------------------------------------------
DISTRIBUTION/WHOLESALE -- 0.1%
CDW 245 15
Nuco2* 200 5
--------------
20
- -------------------------------------------------------------
ENTERTAINMENT SOFTWARE -- 0.4%
Activision* 3,282 67
Electronic Arts* 490 28
THQ* 450 16
--------------
111
- -------------------------------------------------------------
FOOD-RETAIL -- 0.1%
Cia Brasileira de Distribuicao Grupo
Pao de Acucar ADR 800 18
--------------
18
- -------------------------------------------------------------
GAMBLING (NON-HOTEL) -- 0.0%
Isle of Capri Casinos* 350 10
--------------
10
- -------------------------------------------------------------
GOLF -- 0.0%
Callaway Golf 560 8
--------------
8
- -------------------------------------------------------------
HOTELS & MOTELS -- 0.7%
Fairmont Hotels & Resorts 270 9
Jameson Inns* 17,545 42
Lodgian* 2,970 31
Marriott International, Cl A 260 18
Orient Express Hotels, Cl A 264 8
Starwood Hotels & Resorts Worldwide 1,598 101
--------------
209
- -------------------------------------------------------------
MOTORCYCLE/MOTOR SCOOTER -- 0.1%
Harley-Davidson 380 20
--------------
20
- -------------------------------------------------------------
MULTIMEDIA -- 0.4%
Entravision Communications, Cl A* 5,840 50
EW Scripps, Cl A 380 19
Walt Disney 2,114 54
--------------
123
- -------------------------------------------------------------
PUBLISHING-BOOKS -- 0.2%
Scholastic* 1,435 53
--------------
53
- -------------------------------------------------------------
PUBLISHING-NEWSPAPERS -- 0.4%
Gannett 812 59
Journal Register* 2,755 52
--------------
111
- -------------------------------------------------------------
PUBLISHING-PERIODICALS -- 0.2%
Reader's Digest 4,325 70
--------------
70
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
RADIO -- 0.7%
Cumulus Media, Cl A* 3,555 $ 45
Emmis Communications, Cl A* 1,810 37
Radio One, Cl A* 3,365 44
Radio One, Cl D* 1,810 24
Spanish Broadcasting System, Cl A* 4,905 42
Westwood One* 340 7
--------------
199
- -------------------------------------------------------------
RETAIL-APPAREL/SHOE -- 0.3%
Charming Shoppes* 1,600 19
Childrens Place Retail Stores* 400 18
JoS A Bank Clothiers* 450 21
Ross Stores 440 12
Urban Outfitters* 140 8
--------------
78
- -------------------------------------------------------------
RETAIL-ARTS & CRAFTS -- 0.1%
Michaels Stores 950 39
--------------
39
- -------------------------------------------------------------
RETAIL-BEDDING -- 0.1%
Bed Bath & Beyond* 380 17
--------------
17
- -------------------------------------------------------------
RETAIL-BUILDING PRODUCTS -- 0.4%
Home Depot 868 38
Lowe's 1,130 75
--------------
113
- -------------------------------------------------------------
RETAIL-DISCOUNT -- 0.2%
Costco Wholesale 115 5
Dollar General 2,435 49
Target 370 22
--------------
76
- -------------------------------------------------------------
RETAIL-DRUG STORE -- 0.2%
CVS 1,180 37
Walgreen 510 24
--------------
61
- -------------------------------------------------------------
RETAIL-HYPERMARKETS -- 0.2%
Wal-Mart de Mexico ADR, Cl V 1,300 58
--------------
58
- -------------------------------------------------------------
RETAIL-JEWELRY -- 0.0%
Tiffany 305 10
--------------
10
- -------------------------------------------------------------
RETAIL-MAJOR DEPARTMENT STORE -- 0.3%
JC Penney Holding 1,367 77
--------------
77
- -------------------------------------------------------------
RETAIL-OFFICE SUPPLIES -- 0.1%
OfficeMax 360 11
Staples 1,510 34
--------------
45
- -------------------------------------------------------------
55
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
RETAIL-PAWN SHOPS -- 0.1%
Cash America International 450 $ 10
Ezcorp, Cl A* 550 9
--------------
19
- -------------------------------------------------------------
RETAIL-PET FOOD & SUPPLIES -- 0.0%
Petco Animal Supplies* 370 10
--------------
10
- -------------------------------------------------------------
RETAIL-PETROLEUM PRODUCTS -- 0.1%
World Fuel Services 800 20
--------------
20
- -------------------------------------------------------------
RETAIL-REGIONAL DEPARTMENT STORE -- 0.1%
Kohl's* 560 32
--------------
32
- -------------------------------------------------------------
RETAIL-RESTAURANTS -- 0.4%
Darden Restaurants 1,088 38
Lone Star Steakhouse & Saloon 450 13
O'Charleys* 400 7
PF Chang's China Bistro* 170 10
Starbucks* 290 15
Wendy's International 944 49
--------------
132
- -------------------------------------------------------------
RETAIL-VIDEO RENTAL -- 0.2%
Blockbuster, Cl A 5,745 50
Movie Gallery 700 17
--------------
67
- -------------------------------------------------------------
TELEVISION -- 0.4%
Sinclair Broadcast Group, Cl A 11,405 103
Univision Communications,
Cl A* 330 9
--------------
112
- -------------------------------------------------------------
THEATERS -- 0.0%
Carmike Cinemas 200 6
--------------
6
- -------------------------------------------------------------
TOYS -- 0.3%
Mattel 4,551 85
--------------
85
--------------
TOTAL CONSUMER CYCLICAL (COST $2,639) 2,861
--------------
- -------------------------------------------------------------
CONSUMER NON-CYCLICAL -- 3.9%
AGRICULTURAL OPERATIONS -- 0.4%
Delta & Pine Land 1,400 37
Monsanto 470 32
Tejon Ranch* 930 57
--------------
126
- -------------------------------------------------------------
BEVERAGES-NON-ALCOHOLIC -- 0.1%
Pepsi Bottling Group 455 13
PepsiCo 410 23
--------------
36
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
BREWERY -- 0.4%
Grupo Modelo ADR, Cl C 1,000 $ 33
Molson Coors Brewing, Cl B 600 38
Quilmes ADR 2,000 61
--------------
132
- -------------------------------------------------------------
CONSUMER PRODUCTS -- MISCELLANEOUS -- 0.1%
Helen of Troy 1,730 41
--------------
41
- -------------------------------------------------------------
COSMETICS & TOILETRIES -- 0.1%
Gillette 169 9
Procter & Gamble 597 33
--------------
42
- -------------------------------------------------------------
FOOD-DAIRY PRODUCTS -- 0.3%
Dean Foods* 2,372 85
--------------
85
- -------------------------------------------------------------
FOOD-FLOUR & GRAIN -- 0.2%
Archer-Daniels-Midland 2,319 53
--------------
53
- -------------------------------------------------------------
FOOD-MEAT PRODUCTS -- 0.2%
Smithfield Foods* 1,850 48
--------------
48
- -------------------------------------------------------------
FOOD-MISCELLANEOUS/DIVERSIFIED -- 0.2%
ConAgra Foods 2,473 56
--------------
56
- -------------------------------------------------------------
FOOD-RETAIL -- 0.1%
Whole Foods Market 160 22
--------------
22
- -------------------------------------------------------------
OFFICE SUPPLIES & FORMS -- 0.0%
Avery Dennison 170 10
--------------
10
- -------------------------------------------------------------
POULTRY -- 0.2%
Pilgrim's Pride 1,050 40
Sanderson Farms 350 15
--------------
55
- -------------------------------------------------------------
TOBACCO -- 1.6%
Altria Group 3,270 219
Imperial Tobacco Group ADR 2,474 129
UST 2,782 128
--------------
476
--------------
TOTAL CONSUMER NON-CYCLICAL (COST $1,142) 1,182
--------------
- -------------------------------------------------------------
ENERGY -- 7.3%
COAL -- 0.2%
Arch Coal 110 6
Consol Energy 950 64
--------------
70
- -------------------------------------------------------------
OIL & GAS DRILLING -- 0.8%
Atwood Oceanics* 405 28
ENSCO International 320 13
GlobalSantaFe 170 8
Nabors* 1,370 90
Precision Drilling* 600 25
- -------------------------------------------------------------
56
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
OIL & GAS DRILLING -- CONTINUED
Pride International* 1,835 $ 48
Rowan* 360 12
Todco, Cl A* 280 8
Transocean* 190 11
--------------
243
- -------------------------------------------------------------
OIL COMPANIES-EXPLORATION & PRODUCTION -- 0.8%
Berry Petroleum, Cl A 350 20
Houston Exploration* 200 12
Meridian Resource* 4,265 22
Newfield Exploration* 1,200 51
Noble Energy 10 1
NovaTek GDR 144A* 800 16
Penn Virginia 250 13
Pogo Producing 30 2
PTT Exploration and Production ADR 1,200 24
Stone Energy* 770 41
Ultra Petroleum* 340 13
Unit* 250 12
Unocal 47 3
XTO Energy 80 3
--------------
233
- -------------------------------------------------------------
OIL COMPANIES-INTEGRATED -- 3.7%
BP ADR 2,396 158
Chevron 2,146 124
China Petroleum & Chemical ADR 800 35
ConocoPhillips 3,372 211
Exxon Mobil 3,006 177
LUKOIL ADR 1,300 54
Marathon Oil 966 56
Occidental Petroleum 2,984 245
Petroleo Brasileiro ADR 800 42
--------------
1,102
- -------------------------------------------------------------
OIL FIELD MACHINERY & EQUIPMENT -- 0.3%
Cooper Cameron* 600 42
Maverick Tube* 350 12
National Oilwell Varco* 370 19
Smith International 410 28
--------------
101
- -------------------------------------------------------------
OIL REFINING & MARKETING -- 0.3%
Giant* 300 12
Tesoro* 350 17
Valero Energy 600 49
--------------
78
- -------------------------------------------------------------
OIL-FIELD SERVICES -- 0.6%
BJ Services 520 32
Cal Dive International* 470 28
Core Laboratories* 1,215 39
Schlumberger 320 27
Tidewater 170 7
W-H Energy Services* 1,485 46
Weatherford International* 30 2
--------------
181
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
PIPELINES -- 0.6%
China Gas Holdings ADR* 400 $ 35
El Paso 1,115 13
National Fuel Gas 1,350 41
Questar 950 67
Williams 540 11
--------------
167
--------------
TOTAL ENERGY (COST $1,893) 2,175
--------------
- -------------------------------------------------------------
FINANCIAL -- 18.5%
COMMERCIAL BANKS NON-US -- 0.2%
ABSA Group ADR 500 14
Bank Hapoalim GDR 1,700 28
Kookmin Bank ADR 600 32
--------------
74
- -------------------------------------------------------------
COMMERCIAL BANKS-CENTRAL US -- 0.1%
Texas Regional Bancshares, Cl A 250 8
Wintrust Financial 250 13
--------------
21
- -------------------------------------------------------------
COMMERCIAL BANKS-EASTERN US -- 0.2%
Commerce Bancorp 1,075 36
Signature Bank* 1,015 31
--------------
67
- -------------------------------------------------------------
COMMERCIAL BANKS-SOUTHERN US -- 0.2%
Colonial BancGroup 2,300 54
Oriental Financial Group 570 9
--------------
63
- -------------------------------------------------------------
COMMERCIAL BANKS-WESTERN US -- 0.2%
CVB Financial 637 14
Hanmi Financial 600 11
UCBH Holdings 1,160 21
--------------
46
- -------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES -- 0.1%
E. Sun Financial Holdings GDR* 1,400 28
--------------
28
- -------------------------------------------------------------
FINANCE-CONSUMER LOANS -- 1.0%
Asta Funding 400 11
Collegiate Funding Services LLC* 6,195 92
Portfolio Recovery Associates* 755 32
SLM 3,289 169
World Acceptance* 400 11
--------------
315
- -------------------------------------------------------------
FINANCE-CREDIT CARD -- 0.9%
Capital One Financial 470 39
MBNA 5,901 148
Metris* 1,000 15
Providian Financial* 3,323 63
--------------
265
- -------------------------------------------------------------
57
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
FINANCE-INVESTMENT BANKER/BROKER -- 1.0%
Bear Stearns 567 $ 58
Citigroup 3,157 137
GFI Group* 345 12
Goldman Sachs Group 620 67
Lehman Brothers Holdings 233 24
--------------
298
- -------------------------------------------------------------
FINANCE-MORTGAGE LOAN/BANKER -- 0.3%
Countrywide Financial 2,654 96
--------------
96
- -------------------------------------------------------------
FINANCE-OTHER SERVICES -- 0.4%
Asset Acceptance Capital* 2,165 59
MarketAxess Holdings* 4,765 52
--------------
111
- -------------------------------------------------------------
FINANCIAL GUARANTEE INSURANCE -- 0.3%
MGIC Investment 1,310 90
--------------
90
- -------------------------------------------------------------
INSURANCE BROKERS -- 0.4%
Brown & Brown 1,000 43
Hilb Rogal & Hobbs 400 13
USI Holdings* 4,255 55
--------------
111
- -------------------------------------------------------------
INVESTMENT MANAGEMENT/ADVISORY SERVICES -- 0.2%
Affiliated Managers Group* 590 42
Federated Investors, Cl B 295 9
--------------
51
- -------------------------------------------------------------
LIFE/HEALTH INSURANCE -- 1.0%
Ceres Group* 900 6
China Life Insurance ADR* 1,000 30
Cigna 1,596 170
KMG America* 6,135 60
UnumProvident 1,070 20
--------------
286
- -------------------------------------------------------------
MULTI-LINE INSURANCE -- 1.9%
ACE 68 3
Allmerica Financial* 830 32
Allstate 2,550 156
American International Group 200 12
Assurant 75 3
Hartford Financial Services Group 1,327 107
Metlife 1,532 75
XL Capital, Cl A 2,334 168
--------------
556
- -------------------------------------------------------------
PROPERTY/CASUALTY INSURANCE -- 0.7%
EMC Insurance Group 2,015 38
Fidelity National Financial 265 11
FPIC Insurance Group* 300 10
Philadelphia Consolidated Holding* 200 17
PMA Capital, Cl A* 1,100 10
Safeco 950 52
Selective Insurance Group 350 17
WR Berkley 1,200 45
--------------
200
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
REAL ESTATE MANAGEMENT/SERVICES -- 0.3%
CB Richard Ellis Group, Cl A* 895 $ 41
Jones Lang LaSalle* 300 15
Trammell Crow* 1,155 29
--------------
85
- -------------------------------------------------------------
REAL ESTATE OPERATION/DEVELOPMENT -- 0.2%
Brookfield Properties 2,019 59
St. Joe 75 6
--------------
65
- -------------------------------------------------------------
REINSURANCE -- 0.6%
Aspen Insurance Holdings 305 9
Axis Capital Holdings 505 14
OdysseyRe Holdings 170 4
PartnerRe 750 49
PXRE Group 2,030 52
RenaissanceRe Holdings 950 43
--------------
171
- -------------------------------------------------------------
REITS-APARTMENTS -- 0.8%
AvalonBay Communities 615 54
BRE Properties, Cl A 658 30
Camden Property Trust 747 41
Equity Residential 1,845 74
GMH Communities Trust 1,009 15
Home Properties 742 34
--------------
248
- -------------------------------------------------------------
REITS-DIVERSIFIED -- 0.2%
Correctional Properties Trust 200 6
Digital Realty Trust 518 10
Mission West Properties 449 5
Spirit Finance 1,896 22
Washington Real Estate Investment Trust 673 21
--------------
64
- -------------------------------------------------------------
REITS-HEALTH CARE -- 0.1%
Ventas 926 30
--------------
30
- -------------------------------------------------------------
REITS-HOTELS -- 0.9%
Ashford Hospitality Trust 3,490 42
DiamondRock Hospitality 3,200 38
Host Marriott 2,813 53
LaSalle Hotel Properties 1,188 41
MeriStar Hospitality* 10,900 97
--------------
271
- -------------------------------------------------------------
REITS-MANUFACTURED HOMES -- 0.1%
Equity Lifestyle Properties 390 17
--------------
17
- -------------------------------------------------------------
REITS-MORTGAGE -- 0.2%
HomeBanc 7,560 69
--------------
69
- -------------------------------------------------------------
REITS-OFFICE PROPERTY -- 1.6%
Alexandria Real Estate Equities 353 28
American Financial Realty Trust 1,100 16
- -------------------------------------------------------------
58
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
REITS-OFFICE PROPERTY -- CONTINUED
Arden Realty 626 $ 25
BioMed Realty Trust 646 16
Boston Properties 1,929 147
Capital Automotive 1,133 45
Corporate Office
Properties Trust 300 10
HRPT Properties Trust 1,233 16
Liberty Property Trust 1,272 57
Mack-Cali Realty 620 30
Parkway Properties 300 16
Vornado Realty Trust 859 76
--------------
482
- -------------------------------------------------------------
REITS-REGIONAL MALLS -- 0.9%
CBL & Associates Properties 1,378 63
General Growth Properties 650 30
Mills 332 22
Simon Property Group 1,998 159
--------------
274
- -------------------------------------------------------------
REITS-SHOPPING CENTERS -- 0.7%
Developers Diversified Realty 276 13
Equity One 774 18
Kimco Realty 451 30
Pan Pacific Retail Properties 774 54
Realty Income 749 19
Regency Centers 722 44
Tanger Factory Outlet Centers 656 19
Weingarten Realty Investors 678 27
--------------
224
- -------------------------------------------------------------
REITS-STORAGE -- 0.2%
Public Storage 997 67
U-Store-It Trust 361 7
--------------
74
- -------------------------------------------------------------
REITS-WAREHOUSE/INDUSTRIAL -- 0.2%
Catellus Development 1,250 45
EastGroup Properties 395 17
Prologis 79 4
--------------
66
- -------------------------------------------------------------
S&L/THRIFTS-CENTRAL US -- 0.2%
Franklin Bank* 2,470 45
--------------
45
- -------------------------------------------------------------
S&L/THRIFTS-EASTERN US -- 0.2%
Dime Community Bancshares 550 9
NewAlliance Bancshares 3,195 46
WSFS Financial 100 6
--------------
61
- -------------------------------------------------------------
S&L/THRIFTS-SOUTHERN US -- 0.1%
BankAtlantic Bancorp, Cl A 1,395 25
Ocwen Financial* 600 5
--------------
30
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
S&L/THRIFTS-WESTERN US -- 0.6%
Washington Federal 2,025 $ 47
Washington Mutual 3,095 132
--------------
179
- -------------------------------------------------------------
SUPER-REGIONAL BANKS-US -- 1.3%
Bank of America 3,528 154
Wachovia 948 48
Wells Fargo 3,302 202
--------------
404
--------------
TOTAL FINANCIAL (COST $5,038) 5,537
--------------
- -------------------------------------------------------------
HEALTH CARE -- 9.8%
DIAGNOSTIC EQUIPMENT -- 0.1%
Cytyc* 880 22
Gen-Probe* 400 18
--------------
40
- -------------------------------------------------------------
DISPOSABLE MEDICAL PRODUCTS -- 0.1%
C.R. Bard 290 19
ICU Medical* 600 20
--------------
39
- -------------------------------------------------------------
HEALTH CARE COST CONTAINMENT -- 0.1%
McKesson 833 37
--------------
37
- -------------------------------------------------------------
MEDICAL INSTRUMENTS -- 0.7%
Boston Scientific* 670 19
Guidant 517 36
Medtronic 200 11
St. Jude Medical* 1,950 92
Symmetry Medical* 1,985 50
--------------
208
- -------------------------------------------------------------
MEDICAL LABS & TESTING SERVICES -- 0.2%
Covance* 1,000 50
Quest Diagnostics 240 12
--------------
62
- -------------------------------------------------------------
MEDICAL PRODUCTS -- 1.6%
Baxter International 2,924 115
Becton Dickinson 280 15
Biomet 180 7
Cooper 170 12
Henry Schein* 75 3
Johnson & Johnson 3,284 210
Stryker 330 18
Varian Medical Systems* 270 11
Zimmer Holdings* 890 73
--------------
464
- -------------------------------------------------------------
MEDICAL-BIOMEDICAL/GENETIC -- 0.9%
Amgen* 470 37
Applera Corp - Celera Genomics Group* 3,895 48
Charles River Laboratories
International* 340 17
Enzon Pharmaceuticals* 3,030 24
Genentech* 1,020 91
- -------------------------------------------------------------
59
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
MEDICAL-BIOMEDICAL/GENETIC -- CONTINUED
Genzyme* 410 $ 31
Georgia Gulf 250 8
Protein Design Labs* 756 17
--------------
273
- -------------------------------------------------------------
MEDICAL-DRUGS -- 1.8%
Abbott Laboratories 330 15
Angiotech Pharmaceuticals* 4,250 57
Bristol-Myers Squibb 3,568 89
Pfizer 6,344 168
Priority Healthcare, Cl B* 1,450 40
Schering-Plough 4,780 100
Sepracor* 100 5
Wyeth 1,108 51
--------------
525
- -------------------------------------------------------------
MEDICAL-GENERIC DRUGS -- 0.6%
Barr Pharmaceuticals* 115 6
Perrigo 3,360 47
Teva Pharmaceutical ADR 4,370 137
Watson Pharmaceuticals* 130 4
--------------
194
- -------------------------------------------------------------
MEDICAL-HMO -- 1.5%
Aetna 284 22
Pacificare Health Systems* 820 62
Sierra Health Services* 200 13
UnitedHealth Group 2,344 123
WellPoint* 3,109 220
--------------
440
- -------------------------------------------------------------
MEDICAL-HOSPITALS -- 0.2%
Community Health Systems* 1,200 46
Tenet Healthcare* 515 6
Triad Hospitals* 340 17
--------------
69
- -------------------------------------------------------------
MEDICAL-NURSING HOMES -- 0.1%
Genesis HealthCare* 850 38
--------------
38
- -------------------------------------------------------------
MEDICAL-OUTPATIENT/HOME MEDICAL -- 0.1%
Amedisys* 450 18
Lincare Holdings* 200 8
--------------
26
- -------------------------------------------------------------
MEDICAL-WHOLESALE DRUG DISTRIBUTORS -- 0.5%
AmerisourceBergen 700 50
Cardinal Health 1,574 94
--------------
144
- -------------------------------------------------------------
OPTICAL SUPPLIES -- 0.3%
Alcon 730 84
--------------
84
- -------------------------------------------------------------
PHARMACY SERVICES -- 0.3%
Accredo Health* 960 43
Caremark Rx* 984 44
--------------
87
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
RESPIRATORY PRODUCTS -- 0.1%
Resmed* 180 $ 12
Respironics* 600 23
--------------
35
- -------------------------------------------------------------
THERAPEUTICS -- 0.5%
CV Therapeutics* 1,470 41
Gilead Sciences* 1,570 70
QLT* 3,160 27
Vicuron Pharmaceuticals* 520 15
--------------
153
- -------------------------------------------------------------
VETERINARY DIAGNOSTICS -- 0.1%
VCA Antech* 1,080 26
--------------
26
--------------
TOTAL HEALTH CARE (COST $2,706) 2,944
--------------
- -------------------------------------------------------------
INDUSTRIAL -- 6.8%
AEROSPACE/DEFENSE -- 0.8%
Armor Holdings* 1,245 51
Curtiss-Wright 200 12
Lockheed Martin 1,552 97
Rockwell Collins 690 33
Teledyne Technologies* 1,180 45
--------------
238
- -------------------------------------------------------------
AEROSPACE/DEFENSE-EQUIPMENT -- 0.3%
Alliant Techsystems* 680 49
BE Aerospace* 1,820 32
--------------
81
- -------------------------------------------------------------
BATTERIES/BATTERY SYSTEMS -- 0.2%
Greatbatch* 3,005 73
--------------
73
- -------------------------------------------------------------
BUILDING & CONSTRUCTION PRODUCTS-MISCELLANEOUS -- 0.2%
Dycom Industries* 495 12
Insituform Technologies, Cl A* 1,965 38
--------------
50
- -------------------------------------------------------------
BUILDING PRODUCTS-AIR & HEATING -- 0.0%
York International 160 7
--------------
7
- -------------------------------------------------------------
BUILDING PRODUCTS-CEMENT/AGGREGATE -- 0.2%
Lafarge North America 750 52
Texas Industries 200 15
--------------
67
- -------------------------------------------------------------
BUILDING-HEAVY CONSTRUCTION -- 0.2%
Chicago Bridge & Iron 900 25
Washington Group International* 530 29
--------------
54
- -------------------------------------------------------------
CONTAINERS-PAPER/PLASTIC -- 0.1%
Sealed Air* 750 40
--------------
40
- -------------------------------------------------------------
60
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
DIVERSIFIED MANUFACTURING OPERATIONS -- 1.0%
Actuant, Cl A* 200 $ 9
Brink's 1,175 43
Danaher 170 9
Dover 300 12
ESCO Technologies* 100 11
General Electric 1,040 36
Honeywell International 1,378 54
ITT 290 31
Trinity 210 8
Tyco International 2,707 83
--------------
296
- -------------------------------------------------------------
ELECTRIC PRODUCTS-MISCELLANEOUS -- 0.7%
Emerson Electric 1,631 108
LG Electronics GDR 144A* 1,300 24
Samsung Electronics GDR 144A 290 80
--------------
212
- -------------------------------------------------------------
ELECTRONIC MEASURING INSTRUMENTS -- 0.1%
Flir Systems* 980 32
--------------
32
- -------------------------------------------------------------
ELECTRONICS-MILITARY -- 0.1%
EDO 560 17
Engineered Support Systems 475 18
--------------
35
- -------------------------------------------------------------
ENGINEERING/R&D SERVICES -- 0.1%
Shaw Group* 1,735 33
--------------
33
- -------------------------------------------------------------
ENGINES-INTERNAL COMBUSTION -- 0.0%
Cummins 79 7
--------------
7
- -------------------------------------------------------------
FILTRATION/SEPARATION PRODUCTS -- 0.1%
Clarcor 500 16
--------------
16
- -------------------------------------------------------------
GOLD MINING -- 0.3%
AngloGold Ashanti ADR 1,400 48
Goldcorp 2,900 47
Royal Gold 300 6
--------------
101
- -------------------------------------------------------------
HAZARDOUS WASTE DISPOSAL -- 0.1%
American Ecology 1,250 23
Stericycle* 170 10
--------------
33
- -------------------------------------------------------------
IDENTIFICATION SYSTEMS/DEVELOPMENT -- 0.0%
Symbol Technologies 680 8
--------------
8
- -------------------------------------------------------------
INDUSTRIAL AUTOMATION/ROBOT -- 0.1%
Rockwell Automation 310 16
--------------
16
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
INSTRUMENTS-SCIENTIFIC -- 0.0%
Applera Corp - Applied Biosystems Group 530 $ 11
--------------
11
- -------------------------------------------------------------
MACHINERY-CONSTRUCTION & MINING -- 0.4%
Caterpillar 886 48
Joy Global 625 26
Terex* 1,000 48
--------------
122
- -------------------------------------------------------------
MACHINERY-FARM -- 0.1%
CNH Global 2,100 44
--------------
44
- -------------------------------------------------------------
MACHINERY-GENERAL INDUSTRY -- 0.2%
Wabtec 1,945 47
--------------
47
- -------------------------------------------------------------
MACHINERY-PRINT TRADE -- 0.0%
Zebra Technologies, Cl A* 220 9
--------------
9
- -------------------------------------------------------------
METAL PROCESSORS & FABRICATORS -- 0.1%
Precision Castparts 200 18
--------------
18
- -------------------------------------------------------------
NON-HAZARDOUS WASTE DISPOSAL -- 0.2%
WCA Waste* 6,160 52
--------------
52
- -------------------------------------------------------------
POWER CONVERSION/SUPPLY EQUIPMENT -- 0.4%
American Power Conversion 4,618 130
--------------
130
- -------------------------------------------------------------
TOOLS-HAND HELD -- 0.4%
Stanley Works 2,172 106
--------------
106
- -------------------------------------------------------------
TRANSPORT-EQUIPMENT & LEASING -- 0.2%
GATX 1,650 62
--------------
62
- -------------------------------------------------------------
WIRE & CABLE PRODUCTS -- 0.2%
General Cable* 2,720 45
--------------
45
--------------
TOTAL INDUSTRIAL (COST $1,859) 2,045
--------------
- -------------------------------------------------------------
SERVICES -- 2.7%
ADVERTISING AGENCIES -- 0.0%
Interpublic Group* 855 11
--------------
11
- -------------------------------------------------------------
ADVERTISING SERVICES -- 0.1%
Getty Images* 220 18
--------------
18
- -------------------------------------------------------------
61
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
COMMERCIAL SERVICES -- 0.2%
Alliance Data Systems* 380 $ 16
ChoicePoint* 395 17
Quanta Services* 1,300 14
--------------
47
- -------------------------------------------------------------
COMMERCIAL SERVICES-FINANCE -- 0.2%
Paychex 550 19
Wright Express* 2,220 47
--------------
66
- -------------------------------------------------------------
COMPUTER SERVICES -- 0.6%
Anteon International* 380 18
Cognizant Technology Solutions, Cl A* 2,100 103
DST Systems* 185 9
Manhattan Associates* 2,115 44
--------------
174
- -------------------------------------------------------------
DIVERSIFIED OPERATIONS/COMMERCIAL SERVICES -- 0.0%
Cendant 193 4
--------------
4
- -------------------------------------------------------------
E-COMMERCE/SERVICES -- 0.2%
eBay* 1,370 57
Monster Worldwide* 540 16
--------------
73
- -------------------------------------------------------------
ELECTRIC-INTEGRATED -- 0.0%
El Paso Electric* 500 11
--------------
11
- -------------------------------------------------------------
HUMAN RESOURCES -- 0.1%
Hewitt, Cl A* 510 14
Medical Staffing Network Holdings* 4,840 28
--------------
42
- -------------------------------------------------------------
RENTAL AUTO/EQUIPMENT -- 0.2%
Aaron Rents 900 22
Dollar Thrifty Automotive Group* 250 8
Rent-A-Center* 1,150 24
--------------
54
- -------------------------------------------------------------
RESEARCH & DEVELOPMENT -- 0.3%
Pharmaceutical Product Development* 350 20
PRA International* 1,795 54
--------------
74
- -------------------------------------------------------------
SCHOOLS -- 0.2%
Apollo Group, Cl A* 810 61
Education Management* 300 10
--------------
71
- -------------------------------------------------------------
TELEPHONE-INTEGRATED -- 0.6%
AT&T 130 3
Tele Norte Leste Participacoes ADR 1,600 25
Telefonos de Mexico SA de CV ADR, Cl A 1,600 31
Valor Communications Group 3,540 49
Verizon Communications 1,958 67
--------------
175
--------------
TOTAL SERVICES (COST $772) 820
--------------
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
TECHNOLOGY -- 9.2%
APPLICATIONS SOFTWARE -- 0.6%
Citrix Systems* 495 $ 12
Infosys Technologies ADR 580 41
Intuit* 170 8
Microsoft 2,040 52
Quest Software* 1,320 19
Satyam Computer Services ADR 2,140 61
--------------
193
- -------------------------------------------------------------
B2B/E-COMMERCE -- 0.1%
webMethods* 3,530 21
--------------
21
- -------------------------------------------------------------
CELLULAR TELECOMMUNICATIONS -- 0.6%
China Mobile Hong Kong ADR 1,600 32
Mobile Telesystems ADR 1,300 46
Nextel Communications, Cl A* 1,480 52
Nextel Partners, Cl A* 380 10
NII Holdings* 394 29
--------------
169
- -------------------------------------------------------------
COMPUTER AIDED DESIGN -- 0.3%
Ansys* 450 17
Autodesk 1,180 40
Parametric Technology* 4,100 28
--------------
85
- -------------------------------------------------------------
COMPUTERS -- 0.5%
Apple Computer* 850 36
Dell* 560 23
International Business Machines 1,011 84
--------------
143
- -------------------------------------------------------------
COMPUTERS-INTEGRATED SYSTEMS -- 0.1%
MTS Systems 650 26
--------------
26
- -------------------------------------------------------------
COMPUTERS-MEMORY DEVICES -- 0.3%
EMC* 1,830 25
Maxtor* 2,760 16
Network Appliance* 773 20
Western Digital* 1,320 20
--------------
81
- -------------------------------------------------------------
DATA PROCESSING/MANAGEMENT -- 0.3%
Dun & Bradstreet* 150 9
MoneyGram International 2,740 58
NAVTEQ* 360 16
SEI Investments 280 11
--------------
94
- -------------------------------------------------------------
DECISION SUPPORT SOFTWARE -- 0.2%
Cognos* 710 28
NetIQ* 2,310 26
--------------
54
- -------------------------------------------------------------
62
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
ELECTRONIC COMPONENTS-MISCELLANEOUS -- 0.7%
Celestica* 810 $ 9
CTS 2,355 29
Flextronics International* 860 12
Gentex 630 11
Hon Hai Precision GDR 144A 5,000 56
Jabil Circuit* 464 14
LG Philips LCD ADR* 2,500 58
NAM TAI Electronics 300 7
Sypris Solutions 400 6
--------------
202
- -------------------------------------------------------------
ELECTRONIC COMPONENTS-SEMICONDUCTORS -- 1.2%
ATI Technologies* 1,530 19
Broadcom, Cl A* 1,860 80
Fairchild Semiconductor International* 370 6
Integrated Silicon Solutions* 2,865 25
Intel 2,647 72
International Rectifier* 280 13
Intersil, Cl A 645 12
MEMC Electronic Materials* 2,500 42
National Semiconductor 258 6
Nvidia* 660 18
Omnivision Technologies* 1,310 19
QLogic* 950 29
Xilinx 340 10
Zoran* 1,435 21
--------------
372
- -------------------------------------------------------------
ELECTRONIC DESIGN AUTOMATION -- 0.0%
Cadence Design Systems* 480 8
--------------
8
- -------------------------------------------------------------
ELECTRONIC FORMS -- 0.0%
Adobe Systems 290 9
--------------
9
- -------------------------------------------------------------
ENTERPRISE SOFTWARE/SERVICES -- 0.7%
Informatica* 5,620 59
MicroStrategy, Cl A* 170 13
Oracle* 5,876 80
SAP ADR 1,050 45
SSA Global Technologies* 1,130 15
--------------
212
- -------------------------------------------------------------
IDENTIFICATION SYSTEMS/DEVELOPMENT -- 0.0%
Fargo Electronics* 750 13
--------------
13
- -------------------------------------------------------------
INTERNET APPLICATION SOFTWARE -- 0.1%
Verity* 2,180 22
--------------
22
- -------------------------------------------------------------
INTERNET INFRASTRUCTURE EQUIPMENT -- 0.1%
Avocent* 595 21
--------------
21
- -------------------------------------------------------------
INTERNET INFRASTRUCTURE SOFTWARE -- 0.2%
Radware* 3,200 55
--------------
55
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
INTERNET SECURITY -- 0.3%
Symantec* 3,948 $ 87
VeriSign* 350 9
--------------
96
- -------------------------------------------------------------
NETWORKING PRODUCTS -- 0.4%
Cisco Systems* 2,874 55
Foundry Networks* 3,880 46
Juniper Networks* 430 10
--------------
111
- -------------------------------------------------------------
SEMICONDUCTOR COMPONENTS-INTEGRATED CIRCUITS -- 0.3%
Maxim Integrated Products 170 7
Standard Microsystems* 875 22
Taiwan Semiconductor
Manufacturing ADR 3,360 29
United Microelectronics ADR 8,015 31
--------------
89
- -------------------------------------------------------------
SEMICONDUCTOR EQUIPMENT -- 0.0%
Applied Materials* 560 10
--------------
10
- -------------------------------------------------------------
SOFTWARE TOOLS -- 0.1%
Borland Software* 3,600 24
--------------
24
- -------------------------------------------------------------
TELECOMMUNICATIONS EQUIPMENT -- 0.1%
Comtech Telecommunications* 225 8
Comverse Technology* 597 15
Scientific-Atlanta 300 12
--------------
35
- -------------------------------------------------------------
TELECOMMUNICATIONS SERVICES -- 0.5%
Amdocs* 2,805 83
Iowa Telecommunications Services 1,965 37
Telekomunikasi Indonesia ADR* 1,500 35
--------------
155
- -------------------------------------------------------------
TELEPHONE-INTEGRATED -- 0.1%
Philippine Long Distance Telephone ADR* 1,100 32
--------------
32
- -------------------------------------------------------------
WEB HOSTING/DESIGN -- 0.0%
Macromedia* 344 14
--------------
14
- -------------------------------------------------------------
WEB PORTALS/ISP -- 0.6%
Google, Cl A* 347 100
Yahoo!* 2,600 87
--------------
187
- -------------------------------------------------------------
WIRELESS EQUIPMENT -- 0.8%
Motorola 1,932 41
Nokia ADR 7,304 117
Qualcomm 1,850 73
--------------
231
--------------
TOTAL TECHNOLOGY (COST $2,533) 2,764
--------------
- -------------------------------------------------------------
63
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
TRANSPORTATION -- 1.4%
AIRLINES -- 0.1%
Skywest 590 $ 12
Southwest Airlines 1,530 22
--------------
34
- -------------------------------------------------------------
TRANSPORT-AIR FREIGHT -- 0.0%
EGL* 10 --
--------------
--
- -------------------------------------------------------------
TRANSPORT-MARINE -- 0.3%
CP Ships 1,235 22
General Maritime* 450 18
Kirby* 200 10
Overseas Shipholding Group 750 46
--------------
96
- -------------------------------------------------------------
TRANSPORT-RAIL -- 0.6%
Burlington Northern Santa Fe 1,861 101
Canadian Pacific Railway 1,200 46
Norfolk Southern 530 20
--------------
167
- -------------------------------------------------------------
TRANSPORT-SERVICES -- 0.2%
Offshore Logistics* 450 16
Ryder System 290 11
United Parcel Service, Cl B 252 19
--------------
46
- -------------------------------------------------------------
TRANSPORT-TRUCK -- 0.2%
Celadon Group* 200 4
CNF 285 15
JB Hunt Transport Services 2,680 52
US Xpress, Cl A* 200 3
--------------
74
--------------
TOTAL TRANSPORTATION (COST $395) 417
--------------
- -------------------------------------------------------------
UTILITIES -- 2.1%
ELECTRIC-GENERATION -- 0.1%
AES* 1,664 27
--------------
27
- -------------------------------------------------------------
ELECTRIC-INTEGRATED -- 1.4%
Alliant Energy 170 5
Duke Energy 3,403 101
Entergy 1,979 154
MGE Energy 365 13
OGE Energy 1,900 58
Pike Electric 500 7
Public Service Enterprise Group 206 13
TXU 633 55
--------------
406
- -------------------------------------------------------------
ENERGY-ALTERNATE SOURCES -- 0.0%
Headwaters* 250 11
--------------
11
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
GAS-DISTRIBUTION -- 0.2%
Energen 850 $ 30
UGI 950 28
--------------
58
- -------------------------------------------------------------
INDEPENDENT POWER PRODUCER -- 0.0%
Reliant Energy* 1,100 14
--------------
14
- -------------------------------------------------------------
POWER CONVERSION/SUPPLY EQUIPMENT -- 0.4%
American Electric Power 2,079 80
Delta Electronics GDR 4,200 37
--------------
117
--------------
TOTAL UTILITIES (COST $565) 633
--------------
TOTAL COMMON STOCK (COST $20,231) 22,116
--------------
- -------------------------------------------------------------
FOREIGN COMMON STOCK -- 19.2%
AUSTRALIA -- 1.9%
Australia & New Zealand Banking Group 7,312 119
BHP Billiton 2,364 35
BlueScope Steel 340 2
Commander Communications* 3,400 6
Insurance Australia Group 11,500 53
Macquarie Bank 400 19
QBE Insurance Group 1,750 23
Rinker Group 15,300 176
Telstra 900 4
Westpac Banking 6,700 101
Zinifex* 14,900 36
--------------
TOTAL AUSTRALIA 574
--------------
- -------------------------------------------------------------
AUSTRIA -- 0.2%
Andritz 300 29
OMV* 480 22
Voestalpine 200 15
--------------
TOTAL AUSTRIA 66
--------------
- -------------------------------------------------------------
BELGIUM -- 0.6%
Belgacom 170 6
Dexia* 1,740 39
Euronav* 40 1
Fortis 2,685 79
KBC Groupe 735 59
--------------
TOTAL BELGIUM 184
--------------
- -------------------------------------------------------------
CANADA -- 0.9%
Algoma Steel Incorporated* 490 12
Canadian Natural Resource 1,600 67
EnCana 2,000 83
Penn West Energy Trust* 600 15
Petro-Canada 100 7
Talisman Energy* 300 13
Teck Cominco, Cl B 400 15
TELUS 1,400 49
--------------
TOTAL CANADA 261
--------------
- -------------------------------------------------------------
64
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Market
Description Shares Value (000)
- -------------------------------------------------------------
DENMARK -- 0.2%
Jyske Bank* 1,400 $ 66
--------------
TOTAL DENMARK 66
--------------
- -------------------------------------------------------------
FINLAND -- 0.2%
Elisa* 300 6
Nokia 2,550 41
Rautaruukki 600 10
--------------
TOTAL FINLAND 57
--------------
- -------------------------------------------------------------
FRANCE -- 0.8%
Assurances Generales de France 50 4
BNP Paribas 940 68
Business Objects* 50 2
France Telecom* 580 18
Societe Generale 400 44
Total 165 41
Ubisoft Entertainment* 350 19
Vivendi Universal 1,147 37
--------------
TOTAL FRANCE 233
--------------
- -------------------------------------------------------------
GERMANY -- 1.8%
Adidas-Salomon 180 33
Allianz 336 43
AMB Generali Holding* 312 26
BASF 1,114 79
Continental 1,430 111
Deutsche Boerse 672 59
E.ON 112 10
Freenet.de* 408 12
MAN* 2,018 94
Mobilcom 709 18
Schering 604 38
Volkswagen* 294 16
--------------
TOTAL GERMANY 539
--------------
- -------------------------------------------------------------
HONG KONG -- 0.4%
Esprit Holdings 8,000 60
Orient Overseas International 5,000 23
Vtech Holdings 8,000 22
--------------
TOTAL HONG KONG 105
--------------
- -------------------------------------------------------------
ITALY -- 0.7%
Banca Intesa 9,600 47
Banca Popolare Italiana* 2,118 21
Capitalia 6,800 40
ENI 3,900 111
--------------
TOTAL ITALY 219
--------------
- -------------------------------------------------------------
JAPAN -- 4.5%
AOC Holdings* 1,500 23
Bank of Yokohama 1,000 6
Bosch Auto Systems 3,000 17
Canon 2,400 119
Chubu Electric Power 7,400 179
Isuzu Motors* 33,000 94
Japan Tobacco 6 86
Kawasaki Kisen Kaisha 8,000 49
Komatsu 1,000 9
Mitsubishi 2,700 39
Mitsui OSK Lines 26,000 167
- -------------------------------------------------------------
Market
Description Shares Value (000)
- -------------------------------------------------------------
JAPAN -- CONTINUED
Mizohu Financial 26 $ 118
Nippon Steel 34,600 88
Nippon Yusen KK 17,000 99
Point 100 4
Santen Pharmaceutical 425 10
Tohoku Electric Power 800 17
Toyota Tsusho 3,000 49
Yahoo! Japan* 4 9
Yamaha Motor 9,300 173
--------------
TOTAL JAPAN 1,355
--------------
- -------------------------------------------------------------
LUXEMBOURG -- 0.0%
Arcelor* 450 10
--------------
TOTAL LUXEMBOURG 10
--------------
- -------------------------------------------------------------
NETHERLANDS -- 0.5%
Aegon 3,200 46
ING Groep 1,950 59
Randstad Holding* 1,200 49
--------------
TOTAL NETHERLANDS 154
--------------
- -------------------------------------------------------------
NEW ZEALAND -- 0.4%
Fletcher Building 21,835 109
Telecom Corporation of New Zealand 3,306 14
--------------
TOTAL NEW ZEALAND 123
--------------
- -------------------------------------------------------------
NORWAY -- 0.7%
Norsk Hydro 820 78
Statoil 5,660 123
--------------
TOTAL NORWAY 201
--------------
- -------------------------------------------------------------
PORTUGAL -- 0.2%
Banco Comercial Portugues* 20,000 51
Energias de Portugal* 3,700 10
--------------
TOTAL PORTUGAL 61
--------------
- -------------------------------------------------------------
SPAIN -- 1.0%
Banco Santander Central Hispano 12,000 149
Gestevision Telecinco 1,000 24
Repsol YPF 3,000 84
Telefonica 1,508 25
--------------
TOTAL SPAIN 282
--------------
- -------------------------------------------------------------
SWITZERLAND -- 0.6%
Credit Suisse Group 1,720 72
Xstrata* 1,400 30
Zurich Financial 470 84
--------------
TOTAL SWITZERLAND 186
--------------
- -------------------------------------------------------------
UNITED KINGDOM -- 3.6%
Alliance Unichem 2,000 29
Antofagasta 600 14
AstraZeneca 1,200 54
Aviva 600 7
Barclays 800 8
BHP Billiton 2,100 30
Corus Group* 20,100 17
HBOS 3,600 55
HSBC Holdings 2,200 36
IMI 16,500 129
- -------------------------------------------------------------
65
OLD MUTUAL ADVISOR FUNDS
STATEMENT OF NET ASSETS
- -------------------------------------------------------------
As of July 31, 2005
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Shares/Face Market
Description Amount (000) Value (000)
- -------------------------------------------------------------
UNITED KINGDOM -- CONTINUED
Imperial Chemical 4,100 $ 19
International Power 14,600 54
Kelda Group 1,200 15
Lloyds TSB Group 7,400 63
National Express Group* 800 12
O2 42,400 103
Premier Foods* 2,100 12
Royal Bank of Scotland 2,345 70
Royal Dutch Shell, Cl A* 400 12
Royal Dutch Shell, Cl B* 2,385 76
SABMiller 3,000 52
Scottish & Southern Energy 2,400 41
Scottish Power 500 5
Shire Pharmaceuticals 900 10
Standard Chartered 2,189 43
Tesco 2,700 16
Vodafone Group 39,100 101
--------------
TOTAL UNITED KINGDOM 1,083
--------------
TOTAL FOREIGN COMMON STOCK (COST $5,413) 5,759
--------------
- -------------------------------------------------------------
REPURCHASE AGREEMENT -- 6.0%
Deutsche Bank
3.29%, dated 07/29/05, to be
repurchased on 08/01/05,
repurchase price $1,786,621
(collateralized by a
U.S. Government obligation,
par value $1,830,000,
3.700%, 11/01/07; total market
value $1,821,956)(A) $1,787 1,787
--------------
TOTAL REPURCHASE AGREEMENT (COST $1,787) 1,787
--------------
TOTAL INVESTMENTS -- 99.0% (COST $27,431) 29,662
--------------
- -------------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- 1.0%
Foreign Currency (Cost $60) 60
Receivable for Fund Shares Sold 562
Payable for Investment Securities Purchased (310)
Payable for Investment Advisory Fees (6)
Payable for Administration Fees (3)
Payable for Distribution Fees (12)
Payable for Insurance Expense to Affiliates (61)
Other Assets and Liabilities, Net 62
--------------
TOTAL OTHER ASSETS AND LIABILITIES 292
--------------
NET ASSETS -- 100.0% $ 29,954
==============
- -------------------------------------------------------------
Description Value (000)
- -------------------------------------------------------------
NET ASSETS:
Paid-in-Capital ($0.001 par value) $ 27,689
Undistributed net investment income 9
Accumulated net realized gain on investments 25
Unrealized appreciation on investments 2,231
--------------
NET ASSETS $ 29,954
==============
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- INSTITUTIONAL CLASS
($6,255,029 / 534,498 SHARES) $11.70
======
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE -- CLASS A
($10,442,717 / 893,980 SHARES) $11.68
======
MAXIMUM OFFERING
PRICE PER SHARE -- CLASS A
($11.68/94.25%) $12.39
======
NET ASSET VALUE AND OFFERING
PRICE PER SHARE -- CLASS C+
($13,256,476 / 1,141,888 SHARES) $11.61
======
* Non-income producing security.
+ Class C shares have a contingent deferred sales charge. For
a description of a possible sales charge, please see this
Portfolio's prospectus.
144A -- Security sold within the terms of a private placement
memorandum, which is exempt from registration under
Section 3A-4, 4(2) or 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in
that program or other accredited investors. On July 31,
2005, these securities amounted to $224,000,
representing 0.7% of the net assets of the Portfolio.
(A) -- Tri-party repurchase agreement
ADR -- American Depositary Receipt
Cl -- Class
GDR -- Global Depositary Receipt
LLC -- Limited Liability Company
REITs -- Real Estate Investment Trusts
Cost figures are shown with "000's" omitted.
The accompanying notes are an integral part of the financial statements.
66
OLD MUTUAL ADVISOR FUNDS
PORTFOLIO EXPENSES EXAMPLE (UNAUDITED)
EXAMPLE
As a shareholder of a Portfolio you may pay two types of fees: transaction fees
and fund-related fees. The Portfolios may charge transaction fees, including
sales charges (loads) on purchase payments; redemption fees; and exchange fees.
The Portfolios also incur various ongoing expenses, including management fees,
distribution and/or service fees, and other fund expenses, which are indirectly
paid by shareholders and affect your investment return.
This Example is intended to help you understand your ongoing costs (in dollars)
of investing in the Portfolios and to compare these costs with the ongoing costs
of investing in other mutual funds. This Example is based on an investment of
$1,000 invested at the beginning of the period and held for the six-month period
ended July 31, 2005.
ACTUAL EXPENSES
The first line for each share class in the following table provides information
about actual account values and actual expenses. The Example includes, but is
not limited to, management fees, 12b-1 fees, fund accounting, custody and
transfer agent fees. However, the Example does not include client specific fees,
such as the $10.00 fee charged to IRA accounts, or the $10.00 fee charged for
wire redemptions. The Example also does not include portfolio trading
commissions and related trading expenses. You may use this information, together
with the amount you invested, to estimate the expenses that you paid over the
period. 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
in the first line for each Portfolio under the heading entitled "Expenses Paid
During Six-Month Period" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each share class in the table provides information about
hypothetical account values and hypothetical expenses based on each Portfolio's
actual expense ratio and an assumed rate of return of 5% per year before
expenses, which is not the Portfolios' actual return. The hypothetical account
values and expenses may not be used to estimate the actual ending account
balance or expenses you paid for the period. You may use this information to
compare the ongoing costs of investing in each Portfolio and other funds. To do
so, compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholders reports of the other funds. Please note that the
expenses shown in the table are meant to highlight your ongoing costs only and
do not reflect any transactional costs, such as sales charges (loads),
redemption fees, or exchange fees. Therefore, this information is useful in
comparing ongoing costs only, and will not help you determine the relative total
costs of owning different funds. In addition, if these transactional costs were
included, your costs would have been higher.
ANNUALIZED EXPENSES
BEGINNING ENDING EXPENSE PAID
ACCOUNT ACCOUNT RATIOS DURING
VALUE VALUE FOR THE SIX SIX MONTH
1/31/05 7/31/05 MONTH PERIOD PERIOD*
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio - Institutional Class
- --------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,030.90 1.25% $6.29
Hypothetical 5% Return 1,000.00 1,018.60 1.25 6.26
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio - Class A
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,029.90 1.50 7.55
Hypothetical 5% Return 1,000.00 1,017.36 1.50 7.50
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio - Class C
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,026.10 2.25 11.30
Hypothetical 5% Return 1,000.00 1,013.64 2.25 11.23
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Balanced Portfolio - Institutional Class
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,055.50 1.30 6.63
Hypothetical 5% Return 1,000.00 1,018.35 1.30 6.51
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Balanced Portfolio - Class A
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,053.60 1.55 7.89
Hypothetical 5% Return 1,000.00 1,017.11 1.55 7.75
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Balanced Portfolio - Class C
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,050.40 2.30 11.69
Hypothetical 5% Return 1,000.00 1,013.39 2.30 11.48
ANNUALIZED EXPENSES
BEGINNING ENDING EXPENSE PAID
ACCOUNT ACCOUNT RATIOS DURING
VALUE VALUE FOR THE SIX SIX MONTH
1/31/05 7/31/05 MONTH PERIOD PERIOD*
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Moderate Growth Portfolio - Institutional Class
- --------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,066.90 1.30% $6.66
Hypothetical 5% Return 1,000.00 1,018.35 1.30 6.51
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Moderate Growth Portfolio - Class A
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,065.00 1.55 7.94
Hypothetical 5% Return 1,000.00 1,017.11 1.55 7.75
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Moderate Growth Portfolio - Class C
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,061.47 2.30 11.76
Hypothetical 5% Return 1,000.00 1,013.39 2.30 11.48
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Growth Portfolio - Institutional Class
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,083.30 1.35 6.97
Hypothetical 5% Return 1,000.00 1,018.10 1.35 6.76
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Growth Portfolio - Class A
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,082.50 1.60 8.26
Hypothetical 5% Return 1,000.00 1,016.86 1.60 8.00
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation Growth Portfolio - Class C
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,079.00 2.35 12.11
Hypothetical 5% Return 1,000.00 1,013.14 2.35 11.73
* Expenses are equal to the Portfolio's annualized expense ratio multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period).
67
OLD MUTUAL ADVISOR FUNDS
STATEMENTS OF OPERATIONS (000)
- --------------------------------------------------------------------------------
For the period ended July 31, 2005
---------------- ---------------- ---------------- ----------------
OLD MUTUAL OLD MUTUAL OLD MUTUAL OLD MUTUAL
ASSET ALLOCATION ASSET ALLOCATION ASSET ALLOCATION ASSET ALLOCATION
CONSERVATIVE BALANCED MODERATE GROWTH GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------- ---------------- ---------------- ----------------
9/30/04* 9/30/04* 9/30/04* 9/30/04*
to to to to
7/31/05 7/31/05 7/31/05 7/31/05
---------------- ---------------- ---------------- ----------------
INVESTMENT INCOME:
Dividends $ 49 $ 234 $ 245 $ 200
Interest 239 365 161 19
Less: Foreign Taxes Withheld (3) (13) (14) (11)
------- ------- ------- -------
Total Investment Income 285 586 392 208
------- ------- ------- -------
EXPENSES:
Investment Advisory fees 75 204 159 106
Distribution and Service fees
Class A 6 17 13 8
Class C 22 71 78 34
Trustees' fees 25 56 32 27
Administration fees 11 28 22 14
Transfer Agent fees 88 197 158 107
Professional fees 69 181 150 92
Custodian fees 51 106 125 102
Registration and SEC fees 42 48 45 42
Offering costs 27 61 34 29
Printing fees 20 47 45 23
Insurance and other expenses 77 166 137 97
------- ------- ------- -------
Total Expenses 513 1,182 998 681
------- ------- ------- -------
Waiver of Investment Advisory Fees (75) (204) (159) (106)
Reimbursement of other expenses by Adviser (300) (596) (519) (383)
------- ------- ------- -------
Net Expenses 138 382 320 192
------- ------- ------- -------
NET INVESTMENT INCOME 147 204 72 16
------- ------- ------- -------
Net Realized Gain from
Security Transactions 76 197 17 25
Net Realized Loss
on Forward Foreign Currency Contracts (31) (64) (63) --
Net Change in Unrealized Appreciation
on Investments 447 2,522 2,897 2,231
Net Change in Unrealized Depreciation
on Forward Foreign Currency Contracts (8) (14) (8) --
------- ------- ------- -------
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 484 2,641 2,843 2,256
------- ------- ------- -------
INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 631 $ 2,845 $ 2,915 $ 2,272
======= ======= ======= =======
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
68
OLD MUTUAL ADVISOR FUNDS
STATEMENTS OF CHANGES IN NET ASSETS (000)
- --------------------------------------------------------------------------------
For the period ended July 31, 2005
------------------- -------------------
OLD MUTUAL OLD MUTUAL
ASSET ALLOCATION ASSET ALLOCATION
CONSERVATIVE BALANCED
PORTFOLIO PORTFOLIO
------------------- -------------------
9/30/04* to 7/31/05 9/30/04* to 7/31/05
------------------- -------------------
INVESTMENT ACTIVITIES:
Net Investment Income $ 147 $ 204
Net Realized Gain (Loss) from Security
and Foreign Currency Transactions 45 133
Net Change in Unrealized Appreciation
on Investments and Foreign Currency Translation 439 2,508
-------- --------
Net Increase in Net Assets Resulting from Operations 631 2,845
-------- --------
DIVIDENDS TO SHAREHOLDERS FROM:
Net Investment Income
Institutional Class (57) (73)
Class A (32) (61)
Class C (24) (29)
-------- --------
Total Dividends (113) (163)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Institutional Class
Shares Issued 4,868 10,189
Shares Issued upon Reinvestment of Dividends 58 73
Redemption Fees -- --
Shares Redeemed -- (1)
-------- --------
Total Institutional Class Transactions 4,926 10,261
-------- --------
Class A
Shares Issued 6,851 19,334
Shares Issued upon Reinvestment of Dividends 24 44
Redemption Fees -- --
Shares Redeemed (331) (658)
-------- --------
Total Class A Transactions 6,544 18,720
-------- --------
Class C
Shares Issued 7,931 24,281
Shares Issued upon Reinvestment of Dividends 7 13
Redemption Fees -- --
Shares Redeemed (160) (856)
-------- --------
Total Class C Transactions 7,778 23,438
-------- --------
Increase in Net Assets Derived from
Capital Share Transactions 19,248 52,419
-------- --------
Total Increase in Net Assets 19,766 55,101
-------- --------
NET ASSETS:
Beginning of Period 25 25
-------- --------
End of Period $ 19,791 $ 55,126
======== ========
Undistributed Income/Distributions
in excess of net investment income $ 8 $ (16)
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 487 1,017
Shares Issued upon Reinvestment of Dividends 6 7
Shares Redeemed -- --
-------- --------
Total Institutional Class Share Transactions 493 1,024
-------- --------
Class A
Shares Issued 664 1,825
Shares Issued upon Reinvestment of Dividends 3 4
Shares Redeemed (32) (62)
-------- --------
Total Class A Share Transactions 635 1,767
-------- --------
Class C
Shares Issued 768 2,292
Shares Issued upon Reinvestment of Dividends 1 1
Shares Redeemed (16) (81)
-------- --------
Total Class C Share Transactions 753 2,212
-------- --------
Net Increase in Shares Outstanding 1,881 5,003
======== ========
------------------- -------------------
OLD MUTUAL OLD MUTUAL
ASSET ALLOCATION ASSET ALLOCATION
MODERATE GROWTH GROWTH
PORTFOLIO PORTFOLIO
------------------- -------------------
9/30/04* to 7/31/05 9/30/04* to 7/31/05
------------------- -------------------
INVESTMENT ACTIVITIES:
Net Investment Income $ 72 $ 16
Net Realized Gain (Loss) from Security
and Foreign Currency Transactions (46) 25
Net Change in Unrealized Appreciation
on Investments and Foreign Currency Translation 2,889 2,231
-------- --------
Net Increase in Net Assets Resulting from Operations 2,915 2,272
-------- --------
DIVIDENDS TO SHAREHOLDERS FROM:
Net Investment Income
Institutional Class (6) (6)
Class A (3) (1)
Class C -- --
-------- --------
Total Dividends (9) (7)
-------- --------
CAPITAL SHARE TRANSACTIONS:
Institutional Class
Shares Issued 5,579 5,378
Shares Issued upon Reinvestment of Dividends 6 6
Redemption Fees -- --
Shares Redeemed -- --
-------- --------
Total Institutional Class Transactions 5,585 5,384
-------- --------
Class A
Shares Issued 17,651 9,915
Shares Issued upon Reinvestment of Dividends 2 1
Redemption Fees -- --
Shares Redeemed (811) (197)
-------- --------
Total Class A Transactions 16,842 9,719
-------- --------
Class C
Shares Issued 29,814 12,967
Shares Issued upon Reinvestment of Dividends -- --
Redemption Fees -- --
Shares Redeemed (252) (406)
-------- --------
Total Class C Transactions 29,562 12,561
-------- --------
Increase in Net Assets Derived from
Capital Share Transactions 51,989 27,664
-------- --------
Total Increase in Net Assets 54,895 29,929
-------- --------
NET ASSETS:
Beginning of Period 25 25
-------- --------
End of Period $ 54,920 $ 29,954
======== ========
Undistributed Income/Distributions
in excess of net investment income $ 3 $ 9
SHARES ISSUED AND REDEEMED:
Institutional Class
Shares Issued 553 533
Shares Issued upon Reinvestment of Dividends 1 1
Shares Redeemed -- --
-------- --------
Total Institutional Class Share Transactions 554 534
-------- --------
Class A
Shares Issued 1,645 915
Shares Issued upon Reinvestment of Dividends -- --
Shares Redeemed (76) (22)
-------- --------
Total Class A Share Transactions 1,569 893
-------- --------
Class C
Shares Issued 2,772 1,179
Shares Issued upon Reinvestment of Dividends -- --
Shares Redeemed (23) (38)
-------- --------
Total Class C Share Transactions 2,749 1,141
-------- --------
Net Increase in Shares Outstanding 4,872 2,568
======== ========
* Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
69
OLD MUTUAL ADVISOR FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period Ended July 31, 2005
----------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
----------------------------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A CLASS C
------------- --------------- ---------------
(9/30/04 TO (9/30/04 TO (9/30/04 TO
7/31/05)* 7/31/05)* 7/31/05)*
------------- --------------- ---------------
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 10.00
--------- --------- ---------
Net Investment Income** 0.16 0.16 0.10
Realized and Unrealized Gains on Securities** 0.50 0.47 0.47
--------- --------- ---------
Redemption Fees -- -- --
Total from Operations 0.66 0.63 0.57
--------- --------- ---------
Dividends from Net Investment Income (0.12) (0.10) (0.07)
--------- --------- ---------
Total Dividends (0.12) (0.10) (0.07)
--------- --------- ---------
Net Asset Value, End of Period $ 10.54 $ 10.53 $ 10.50
========= ========= =========
Total Return+ 6.60% 6.36% 5.75%
========= ========= =========
Net Assets End of Period (000) $ 5,193 $ 6,684 $ 7,914
========= ========= =========
Ratio of Expenses to Average Net Assets++ 1.25% 1.50% 2.25%
Ratio of Net Investment Income to
Average Net Assets++ 1.82% 1.87% 1.15%
Ratio of Expenses to Average Net Assets
(Excluding Waivers)++ 6.95% 4.68% 4.92%
Portfolio Turnover Rate+++ 170.31% 170.31% 170.31%
----------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
----------------------------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A CLASS C
------------- --------------- ---------------
(9/30/04 TO (9/30/04 TO (9/30/04 TO
7/31/05)* 7/31/05)* 7/31/05)*
------------- --------------- ---------------
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 10.00
---------- ---------- ----------
Net Investment Income** 0.10 0.10 0.03
Realized and Unrealized Gains on Securities** 1.01 0.98 1.00
---------- ---------- ----------
Redemption Fees -- -- --
Total from Operations 1.11 1.08 1.03
---------- ---------- ----------
Dividends from Net Investment Income (0.07) (0.06) (0.03)
---------- ---------- ----------
Total Dividends (0.07) (0.06) (0.03)
---------- ---------- ----------
Net Asset Value, End of Period $ 11.04 $ 11.02 $ 11.00
========== ========== ==========
Total Return+ 11.15% 10.83% 10.31%
========== ========== ==========
Net Assets End of Period (000) $ 11,303 $ 19,481 $ 24,342
========== ========== ==========
Ratio of Expenses to Average Net Assets++ 1.30% 1.55% 2.30%
Ratio of Net Investment Income to
Average Net Assets++ 1.14% 1.13% 0.38%
Ratio of Expenses to Average Net Assets
(Excluding Waivers)++ 6.08% 4.42% 4.92%
Portfolio Turnover Rate+++ 125.19% 125.19% 125.19%
* Fund commenced operations September 30, 2004.
** Per Share data was calculated using the Average Shares method.
+ Total return has not been annualized, returns do not reflect loads.
++ Ratios for the period have been annualized.
+++ Portfolio turnover rate has not been annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
70
OLD MUTUAL ADVISOR FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a Share Outstanding Throughout the Period Ended July 31, 2005
----------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
----------------------------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A CLASS C
------------- --------------- ---------------
(9/30/04 TO (9/30/04 TO (9/30/04 TO
7/31/05)* 7/31/05)* 7/31/05)*
------------- --------------- ---------------
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 10.00
--------- ---------- ----------
Net Investment Income (Loss)** 0.07 0.06 0.00
Realized and Unrealized Gains on Securities** 1.27 1.25 1.24
--------- ---------- ----------
Redemption Fees -- -- --
Total from Operations 1.34 1.31 1.24
--------- ---------- ----------
Dividends from Net Investment Income (0.01) (0.01) --
--------- ---------- ----------
Total Dividends (0.01) (0.01) --
--------- ---------- ----------
Net Asset Value, End of Period $ 11.33 $ 11.30 $ 11.24
========= ========== ==========
Total Return+ 13.43% 13.11% 12.44%
========= ========== ==========
Net Assets End of Period (000) $ 6,279 $ 17,736 $ 30,905
========= ========== ==========
Ratio of Expenses to Average Net Assets++ 1.30% 1.55% 2.30%
Ratio of Net Investment Income (Loss) to
Average Net Assets++ 0.79% 0.70% (0.03)%
Ratio of Expenses to Average Net Asset
(Excluding Waivers)++ 6.81% 4.92% 5.44%
Portfolio Turnover Rate+++ 98.50% 98.50% 98.50%
----------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
----------------------------------------------------------------------------
INSTITUTIONAL
CLASS CLASS A CLASS C
------------- --------------- ---------------
(9/30/04 TO (9/30/04 TO (9/30/04 TO
7/31/05)* 7/31/05)* 7/31/05)*
------------- --------------- ---------------
Net Asset Value, Beginning of Period $ 10.00 $ 10.00 $ 10.00
--------- ---------- ----------
Net Investment Income (Loss)** 0.04 0.03 (0.04)
Realized and Unrealized Gains on Securities** 1.67 1.66 1.65
--------- ---------- ----------
Redemption Fees -- -- --
Total from Operations 1.71 1.69 1.61
--------- ---------- ----------
Dividends from Net Investment Income (0.01) (0.01) --
--------- ---------- ----------
Total Dividends (0.01) (0.01) --
--------- ---------- ----------
Net Asset Value, End of Period $ 11.70 $ 11.68 $ 11.61
========= ========== ==========
Total Return+ 17.13% 16.91% 16.15%
========= ========== ==========
Net Assets End of Period (000) $ 6,255 $ 10,443 $ 13,256
========= ========== ==========
Ratio of Expenses to Average Net Assets++ 1.35% 1.60% 2.35%
Ratio of Net Investment Income (Loss) to
Average Net Assets++ 0.43% 0.33% (0.44)%
Ratio of Expenses to Average Net Assets
(Excluding Waivers)++ 7.19% 5.02% 5.63%
Portfolio Turnover Rate+++ 59.93% 59.93% 59.93%
* Fund commenced operations September 30, 2004.
** Per share data was calculated using the Average Shares method.
+ Total return has not been annualized, returns do not reflect loads.
++ Ratios for the period have been annualized.
+++ Portfolio turnover rate has not been annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
71
OLD MUTUAL ADVISOR FUNDS
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
As of July 31, 2005
1. ORGANIZATION
Old Mutual Advisor Funds (the "Trust"), a Delaware statutory trust effective May
26, 2004, is registered under the Investment Company Act of 1940, as amended, as
an open-end management investment company. The Trust currently offers five
series portfolios, the Old Mutual Asset Allocation Conservative Portfolio, the
Old Mutual Asset Allocation Balanced Portfolio, the Old Mutual Asset Allocation
Moderate Growth Portfolio and the Old Mutual Asset Allocation Growth Portfolio
(each a "Fund" and collectively the "Funds") and the Old Mutual Copper Rock
Emerging Growth Fund. The Funds commenced operations on September 30, 2004. The
Old Mutual Copper Rock Emerging Growth Fund's financial statements are presented
separately. Shareholders may purchase shares of the Funds through three separate
classes, Institutional Class, Class A and Class C shares, which have different
distribution costs, voting rights and dividends. Except for these differences,
each Class share of each Fund represents an equal proportionate interest in that
Fund. Each Fund is classified as a diversified management investment company.
The Trust's prospectuses provide a description of each Fund's investment
objective, policies and investment strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by
the Funds.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS -- The preparation
of financial statements, in conformity with accounting principles generally
accepted in the United States of America, requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates.
SECURITY VALUATION -- Investment securities of the Funds that are listed on a
securities exchange, and for which market quotations are readily available, are
valued at the last quoted sales price at the close of trading on the New York
Stock Exchange (normally 4:00 p.m., Eastern Time). Investment securities of the
Funds that are quoted on a national market system are valued at the official
closing price, or if there is none, at the last sales price. If there is no such
reported sale, these securities and unlisted securities for which market
quotations are not readily available, are valued at the last bid price.
Securities for which market prices are not "readily available," of which there
were none as of July 31, 2005, are valued in accordance with Fair Value
Procedures established by the Board of Trustees (the "Board"). The Funds' Fair
Value Procedures are implemented through a Fair Value Committee (the
"Committee") designated by the Board. Some of the more common reasons that may
necessitate that a security be valued using Fair Value Procedures include: the
security's trading has been halted or suspended; the security has been de-listed
from a national exchange; the security's primary trading market is temporarily
closed at a time when under normal conditions it would be open; or the
security's primary pricing source is not able or willing to provide a price.
When a security is valued in accordance with the Fair Value Procedures, the
Committee will determine the value after taking into consideration relevant
information reasonably available to the Committee.However, debt securities
(other than short-term obligations), including listed issues, are valued on the
basis of valuations furnished by a pricing service which utilizes electronic
data processing techniques to determine valuations for normal institutional size
trading units of debt securities, without exclusive reliance upon exchange or
over-the-counter prices. Short-term obligations with maturities of 60 days or
less may be valued at amortized cost, which approximates market value. Under
this valuation method, acquisition discounts and premiums are accreted and
amortized ratably to maturity and are included in interest income.
Foreign securities may be valued based upon quotations from the primary market
in which they are traded, and are translated from the local currency into U.S.
dollars using current exchange rates. In addition, if quotations are not readily
available, or if the values have been materially affected by events occurring
after the closing of a foreign market, assets may be valued by another method
that the Board of Trustees believes accurately reflects fair value.
OPTIONS AND FUTURES -- Options are valued at the last quoted sales price. If
there is no such reported sale on the valuation date, long positions are valued
at the most recent bid price, and short positions are valued at the most recent
ask price. Futures are valued at the settlement price established each day by
the board of exchange on which they are traded. The daily settlement prices for
financial futures are provided by an independent source.
SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are
accounted for on the date the securities are purchased or sold (trade date).
Dividend income and distributions to shareholders are recognized on the
ex-dividend date; interest income is recognized on the accrual basis and
includes amortization of premiums and accretion of discounts on investments.
Costs used in determining realized capital gains and losses on the sale of
investment securities are those of the specific securities sold adjusted for the
accretion and amortization of acquisition discounts and premiums during the
respective holding periods.
DIVIDENDS AND DISTRIBUTIONS -- Dividends from net investment income for the
Funds are declared at least annually, if available. Distributions of net
realized capital gains, for each Fund, are generally made to shareholders
annually, if available.
FOREIGN WITHHOLDING TAXES -- The Funds may be subject to taxes imposed by
countries in which they invest with respect to their investments in issuers
existing or operating in such countries. Such taxes are generally based on
income earned. The Funds accrue such taxes when the related income is earned.
FORWARD FOREIGN CURRENCY CONTRACTS -- The Funds may enter into forward foreign
currency contracts as hedges against specific transactions, fund positions or
anticipated fund positions. All commitments are "marked-to-market" daily at the
applicable foreign exchange rate, and any resulting unrealized gains or losses
are recorded accordingly. The Funds realize gains and losses at the time the
forward contracts are extinguished. Unrealized gains or losses on outstanding
positions in forward foreign currency contracts held at the close of the period
are recognized as ordinary income or loss for Federal income tax purposes. The
Funds could be exposed to risk if the counterparties to the contracts are unable
to meet the terms of the contract and from unanticipated movements in the value
of a foreign currency relative to the U.S. dollar. Finally, the risk exists that
losses could exceed amounts disclosed on the Statements of Net Assets. As of
July 31, 2005, the Funds had the following forward foreign currency contracts
outstanding:
72
OLD MUTUAL ADVISOR FUNDS
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
UNREALIZED
SETTLEMENT DATE CURRENCY TO DELIVER CURRENCY TO RECEIVE CONTRACT VALUE APPRECIATION/(DEPRECIATION)
- --------------- ------------------- ------------------- -------------- --------------------------
10/14/05 EUR 46,624 AUD 76,274 $ 56,215 $(1,360)
10/14/05 EUR 48,737 DKK 363,016 59,020 (71)
10/14/05 EUR 26,735 GBP 17,859 32,413 (1,193)
10/14/05 EUR 27,111 NOK 215,261 32,826 320
10/14/05 EUR 71,957 SEK 676,393 87,715 (73)
10/14/05 EUR 20,306 USD 24,244 24,244 (497)
10/14/05 JPY 480,733 EUR 3,688 4,464 171
10/14/05 NOK 4,202 USD 638 638 (14)
10/14/05 SEK 591,173 USD 76,716 76,716 152
10/14/05 USD 14,053 AUD 18,274 14,053 (224)
10/14/05 USD 15,177 DKK 93,178 15,177 47
10/14/05 USD 38,178 EUR 31,496 38,178 197
10/14/05 USD 23,355 GBP 12,892 23,355 (700)
10/14/05 USD 184,733 JPY 19,902,809 184,733 (5,773)
10/14/05 USD 45,895 NOK 299,693 45,895 540
----------------------------------------
TOTAL $695,642 $(8,478)
========================================
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
UNREALIZED
SETTLEMENT DATE CURRENCY TO DELIVER CURRENCY TO RECEIVE CONTRACT VALUE APPRECIATION/(DEPRECIATION)
- --------------- ------------------- ------------------- -------------- --------------------------
10/14/05 EUR 68,877 AUD 108,247 $ 83,047 $ (2,009)
10/14/05 EUR 71,998 DKK 536,273 87,189 (105)
10/14/05 EUR 39,494 GBP 26,382 47,882 (1,763)
10/14/05 EUR 21,005 JPY 2,738,123 25,436 (973)
10/14/05 EUR 40,051 NOK 318,003 48,494 473
10/14/05 EUR 106,301 SEK 999,229 129,580 (108)
10/14/05 EUR 29,997 USD 35,815 35,815 (735)
10/14/05 NOK 6,328 USD 960 960 (20)
10/14/05 SEK 868,445 USD 112,697 112,697 223
10/14/05 USD 25,081 AUD 32,615 25,081 (400)
10/14/05 USD 27,174 DKK 166,832 27,174 85
10/14/05 USD 275,936 EUR 227,636 275,935 1,422
10/14/05 USD 32,502 GBP 17,942 32,502 (974)
10/14/05 USD 289,710 JPY 31,212,791 289,710 (9,054)
10/14/05 USD 72,814 NOK 475,478 72,814 857
----------------------------------------
TOTAL $1,294,316 $(13,081)
========================================
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
UNREALIZED
SETTLEMENT DATE CURRENCY TO DELIVER CURRENCY TO RECEIVE CONTRACT VALUE APPRECIATION/(DEPRECIATION)
- --------------- ------------------- ------------------- -------------- --------------------------
10/14/05 EUR 29,610 AUD 46,536 $ 35,702 $ (864)
10/14/05 EUR 30,953 DKK 230,548 37,483 (45)
10/14/05 EUR 16,979 GBP 11,342 20,585 (758)
10/14/05 EUR 19,806 JPY 2,581,841 23,984 (917)
10/14/05 EUR 17,218 NOK 136,713 20,848 203
10/14/05 EUR 45,700 SEK 429,577 55,708 (46)
10/14/05 EUR 12,896 USD 15,397 15,397 (316)
10/14/05 NOK 3,485 USD 529 529 (11)
10/14/05 SEK 352,814 USD 45,784 45,784 91
10/14/05 USD 26,744 AUD 34,777 26,744 (427)
10/14/05 USD 28,294 DKK 173,712 28,294 88
10/14/05 USD 209,757 EUR 173,041 209,757 1,081
10/14/05 USD 18,416 GBP 10,166 18,416 (552)
10/14/05 USD 209,017 JPY 22,519,068 209,017 (6,532)
10/14/05 USD 48,893 NOK 319,269 48,893 575
----------------------------------------
TOTAL $797,141 $(8,430)
========================================
AUD -- Australian Dollar NOK -- Norwegian KronE
DKK -- Danish Krone SEK -- Swedish Krona
GBP -- British Pound USD -- U.S. Dollar
JPY -- Japanese Yen
73
OLD MUTUAL ADVISOR FUNDS
NOTES TO FINANCIAL STATEMENTS -- Continued
- --------------------------------------------------------------------------------
As of July 31, 2005
TRI-PARTY REPURCHASE AGREEMENTS -- Securities pledged as collateral for
repurchase agreements are held by a third party custodian bank until the
respective agreements mature. Provisions of the repurchase agreements and
procedures adopted by the Funds' Board of Trustees require that the market value
of the collateral including accrued interest thereon, is sufficient in the event
of default by the counterparty. If the counterparty defaults and the value of
the collateral declines, or if the counterparty enters into insolvency
proceedings, realization of the collateral by a Fund may be delayed or limited.
TBA PURCHASE COMMITMENTS -- The Funds may enter into "TBA" (to be announced)
purchase commitments to purchase securities for a fixed price at a future date,
typically not exceeding 45 days. TBA purchase commitments may be considered
securities in themselves, and involve a risk of loss if the value of the
security to be purchased declines prior to settlement date, which risk is in
addition to the risk of decline in the value of each Fund's other assets.
Unsettled TBA purchase commitments are valued at the current market value of the
underlying securities, according to the procedures described under "Security
Valuation" above.
MORTGAGE DOLLAR ROLLS -- The Funds may enter into mortgage dollar rolls
(principally using TBA's) in which each Fund sells mortgage securities for
delivery in the current month and simultaneously contracts to repurchase
substantially similar securities at an agreed-upon price on a fixed date. Each
Fund accounts for such dollar rolls under the purchases and sales method and
receives compensation as consideration for entering into the commitment to
repurchase. Each Fund must maintain liquid securities having a value not less
than the repurchase price (including accrued interest) for such dollar rolls.
The market value of the securities that each Fund is required to purchase may
decline below the agreed upon repurchase price of those securities.
The counterparty receives all principal and interest payments, including
prepayments, made in respect of a security subject to such a contract while it
is the holder. Mortgage dollar rolls may be renewed with a new purchase and
repurchase price and a cash settlement made on settlement date without physical
delivery of the securities subject to the contract. Each Fund engages in dollar
rolls for the purpose of enhancing its yield, principally by earning a
negotiated fee.
FOREIGN CURRENCY TRANSLATION -- The books and records of the Funds are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars on the following basis:
(I) market value of investment securities, other assets and liabilities at
the current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Funds do not isolate that portion of gains and losses on investment
securities that is due to changes in the foreign exchange rates from that which
is due to changes in market prices of such securities.
The Funds report gains and losses on foreign currency related transactions as
components of realized gains for financial reporting purposes, whereas such
components are treated as ordinary income or loss for Federal income tax
purposes.
FUTURES CONTRACTS -- The Funds may utilize futures contracts primarily to hedge
against changes in security prices. Upon entering into a futures contract, the
Funds will deposit securities for the initial margin with its custodian in a
segregated account. Subsequent payments, which are dependent on the daily
fluctuations in the value of the underlying instrument, are made or received by
the Funds each day (daily variation margin) and are recorded as unrealized gains
or losses until the contracts are closed. When the contract is closed, the Funds
record a realized gain or loss equal to the difference between the proceeds from
(or cost of ) the closing transactions and the Fund's basis in the contract.
Risks of entering into futures contracts include the possibility that a change
in the value of the contract may not correlate with the changes in the value of
the underlying instruments. Second, it is possible that a lack of liquidity for
futures contracts could exist in the secondary market, resulting in an inability
to close a futures position prior to its maturity date. Third, the purchase of a
futures contract involves the risk that the Funds could lose more than the
original margin deposit required to initiate the futures transaction.
OPTIONS -- The Funds may write or purchase financial options contracts primarily
to hedge against changes in security prices, or securities that the Funds intend
to purchase, against fluctuations in fair value caused by changes in prevailing
market interest rates. When the Funds write or purchase an option, an amount
equal to the premium received or paid by the Funds is recorded as a liability or
an asset and is subsequently adjusted to the current market value of the option
written or purchased. Premiums received or paid from writing or purchasing
options which expire unexercised are treated by the Funds on the expiration date
as realized gains or losses. The difference between the premium and the amount
paid or received on effecting a closing purchase or sale transaction, including
brokerage commissions, is also treated as a realized gain or loss. If an option
is exercised, the premium paid or received is added to the cost of the purchase
or proceeds from the sale in determining whether the Funds have realized a gain
or a loss on investment transactions. The Funds as writers of an option, may
have no control over whether the underlying securities may be sold (call) or
purchased (put) and as a result bears the market risk of an unfavorable change
in the price of the security underlying the written option.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMOS) -- CMOs are hybrids between
mortgage-backed bonds and mortgage pass-through securities. Similar to a bond,
CMOs usually pay interest monthly and have a more focused range of principal
payment dates than pass-through securities. While CMOs may be collateralized by
whole mortgage loans, CMOs are more typically collateralized by mortgage-backed
securities guaranteed by Government National Mortgage Association, Federal Home
Loan Mortgage Corporation, or Federal National Mortgage Association and their
income streams.
A Real Estate Mortgage Investment Conduit (REMIC) is a CMO that qualifies for
special tax treatment under the Internal Revenue Code of 1986, as amended, and
invests in certain mortgages primarily secured by interests in real property and
other permitted investments.
CMOs are structured into multiple classes, each bearing a different stated
maturity. Each class of CMO or REMIC certificate, often referred to as a
"tranche," is issued at a specific interest rate and must be fully retired by
its final distribution date. Generally, all classes of CMOs or REMIC
certificates pay or accrue interest monthly. Investing in the lowest tranche of
CMOs and REMIC certificates involves risks similar to those associated with
investing in equity securities.
OFFERING COSTS -- All offering costs incurred with the start up of the Funds are
being amortized on a straight line basis over a period of twelve months starting
with the commencement of the Trust's operations. As of July 31, 2005, the Old
Mutual Asset Allocation Conservative Portfolio, Old Mutual Asset Allocation
Balanced Portfolio, Old Mutual Asset Allocation Moderate Growth Portfolio and
the Old Mutual Asset Allocation Growth Portfolio, since their inception on
September 30, 2004, had $5,456, $12,133, $6,520 and $5,449, respectively,
remaining in offering costs to be amortized.
OTHER -- Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses are prorated to the Funds on the
basis of relative net assets. Class specific expenses, such as 12b-1,
74
OLD MUTUAL ADVISOR FUNDS
distribution and service fees, are borne by that class. Income, other expenses
and realized and unrealized gains and losses of a Fund are allocated to the
respective class on the basis of the relative net assets each day.
The Fund has an arrangement with the transfer agent, DST Systems, Inc., whereby
interest earned on uninvested cash balances is used to offset a portion of the
transfer agent expense. The transfer agent expenses shown in the Statements of
Operations are in total and do not reflect the expense reductions, if any, which
are shown separately.
All Funds impose a 2% redemption/exchange fee on total redemption proceeds
(after applicable deferred sales charges) of any shareholder redeeming shares
(including redemption by exchange) of the Funds within 10 calendar days of their
purchase. The Funds charge the redemption/exchange fee to discourage market
timing by those shareholders initiating redemptions or exchanges to take
advantage of short-term market movements. The redemption fee will be imposed to
the extent that the number of Fund shares redeemed exceeds the number of Fund
shares that have been held for more than 10 calendar days. In determining how
long shares of the Fund have been held, shares held by the investor for the
longest period of time will be sold first. The Funds will retain the fee by
crediting them the capital. As of July 31, 2005, the following redemption fees
were collected by the Funds.
INSTITUTIONAL CLASS CLASS A CLASS C
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation
Conservative Portfolio $ -- $ 1 $ --
Old Mutual Asset Allocation
Balanced Portfolio -- 100 9
Old Mutual Asset Allocation
Moderate Growth Portfolio -- 1 126
Old Mutual Asset Allocation
Growth Portfolio -- 24 35
3. INVESTMENT ADVISORY FEES, ADMINISTRATIVE FEES AND OTHER TRANSACTIONS WITH
AFFILIATES
Old Mutual Capital, Inc. (the "Adviser") is an indirect, wholly owned subsidiary
of Old Mutual (US) Holdings Inc. ("OMUSH"), which is a wholly owned subsidiary
of Old Mutual plc. a London-Exchange listed international financial services
firm. The Funds and the Adviser are parties to an Investment Advisory Agreement
(the "Advisory Agreement"). Under which, the Adviser is paid a monthly fee that
is calculated daily and paid monthly, at an annual rate based on the average
daily net assets of each Fund.
For its services to the Funds, the Adviser will receive, on an annual basis, the
following management fees:
FUND MANAGEMENT FEE ASSET LEVEL
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation 0.850% Less than $1 billion
Conservative Portfolio 0.825% From $1 billion to $2 billion
0.800% From $2 billion to $3 billion
0.775% Greater than $3 billion
Old Mutual Asset Allocation 0.900% Less than $1 billion
Balanced Portfolio and 0.875% From $1 billion to $2 billion
Old Mutual Asset Allocation 0.850% From $2 billion to $3 billion
Moderate Growth 0.825% Greater than $3 billion
Portfolio
Old Mutual Asset Allocation 0.950% Less than $1 billion
Growth Portfolio 0.925% From $1 billion to $2 billion
0.900% From $2 billion to $3 billion
0.875% Greater than $3 billion
In the interest of limiting expenses of the Funds, the Adviser has entered into
separate expense limitation agreements ("Expense Limitation Agreements")
pursuant to which the Adviser has agreed, in writing, to waive or limit its fees
and to assume other expenses of the Funds to the extent necessary to limit the
total annual expenses to a specified percentage of the Funds' average daily net
assets through September 7, 2006.
The expense limitations are as follows:
FUND INSTITUTIONAL CLASS CLASS A CLASS C
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation
Conservative Portfolio 1.25% 1.50% 2.25%
Old Mutual Asset Allocation
Balanced Portfolio 1.30% 1.55% 2.30%
Old Mutual Asset Allocation
Moderate Growth
Portfolio 1.30% 1.55% 2.30%
Old Mutual Asset Allocation
Growth Portfolio 1.35% 1.60% 2.35%
Reimbursement by the Funds of the advisory fees waived and other expenses paid
by the Adviser pursuant to the Expense Limitation Agreements may be made at a
later date when the Funds have reached a sufficient asset size to permit
reimbursement to be made without causing the total annual expense rate of each
Fund to exceed the expense limitation. Consequently, no reimbursement by a Fund
will be made unless: (i) the Fund's assets exceed $75 million; (ii) the Fund's
total annual expense ratio is less than the expense limitation (excluding
certain other expenses such as brokerage commissions and extraordinary
expenses); and (iii) the payment of such reimbursement was approved by the Board
of Trustees on a quarterly basis. Moreover, in accordance with the terms of
agreements with the Adviser, whereby, to the extent that the Adviser reimburses
advisory fees or absorbs operating expenses of a Fund, the Adviser may seek
payment of such of such amounts within two fiscal years after the fiscal year in
which fees were reimbursed or absorbed, the actual expenses charged to the Funds
may exceed these limits. At July 31, 2005, pursuant to the above, the amount the
Advisor may seek reimbursement of previously waived and reimbursed fees for the
Old Mutual Conservative Portfolio, Old Mutual Balanced Portfolio, Old Mutual
Moderate Growth Portfolio and the Old Mutual Growth Portfolio was $374,843,
$800,513, $678,477 and $489,171, respectively.
The Trust, on behalf of the Funds, and the Adviser have entered into a
sub-advisory agreement (the "Ibbotson Sub-Advisory Agreement") with Ibbotson
Associates Advisors, LLC ("Ibbotson"). For the services provided and expenses
incurred pursuant to the Ibbotson Sub-Advisory Agreement for the Funds, Ibbotson
is entitled to receive from the Adviser a sub-advisory fee with respect to the
average daily net assets of such portion of the Funds managed by Ibbotson, which
is computed and paid monthly at an annual rate equal to the greater of (i) a
percentage of the portion of each Fund's average daily net assets so managed,
which will be 0.08% for average daily net assets up to $250 million, 0.07% for
average daily net assets from $250 million to $500 million, 0.06% for average
daily net assets from $500 million to $750 million, 0.05% for average daily net
assets from $750 million to $1 billion, 0.04% for average daily net assets from
$1 billion to $2 billion, and 0.03% for average daily net assets over $2
billion, and (ii) $200,000.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement (the "Acadian Sub-Advisory Agreement") with Acadian Asset
Management, Inc. ("Acadian"). Acadian is a wholly owned subsidiary of OMUSH. For
the services provided and expenses incurred pursuant to the Acadian Sub-Advisory
Agreement for the Funds, Acadian is entitled to receive from the Adviser a
sub-advisory fee with respect to the average daily net assets
75
OLD MUTUAL ADVISOR FUNDS
NOTES TO FINANCIAL STATEMENTS -- Continued
- --------------------------------------------------------------------------------
As of July 31, 2005
of such portion of the Funds managed by Acadian, which is computed and paid
monthly at an annual rate of 0.45% of the average daily net assets so managed.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement (the "Analytic Sub-Advisory Agreement") with Analytic
Investors, Inc. ("Analytic"). Analytic is a wholly owned subsidiary of OMUSH.
For the services provided and expenses incurred pursuant to the Analytic
Sub-Advisory Agreement for the Funds, Analytic is entitled to receive from the
Adviser a sub-advisory fee with respect to the average daily net assets of such
portion of the Funds managed by Analytic, which is computed and paid monthly at
an annual rate of 0.35% of the average daily net assets so managed.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement (the "BHMS Sub-Advisory Agreement") with Barrow, Hanley,
Mewhinney & Strauss, Inc. ("Barrow, Hanley"). Barrow Hanley is a wholly owned
subsidiary of OMUSH. For the services provided and expenses incurred pursuant to
the BHMS Sub-Advisory Agreement for the Funds, Barrow, Hanley is entitled to
receive from the Adviser a sub-advisory fee with respect to the average daily
net assets of such portion of the Funds managed by Barrow, Hanley, which is
computed and paid monthly at an annual rate equal to a percentage of the portion
of each Fund's average daily net assets so managed, which will be 0.15% for U.S.
Intermediate Fixed Income, 0.15% for U.S. Core Fixed Income, 0.35% for U.S.
Large Cap Value, 0.45% for U.S. Mid Cap Value and 0.50% for U.S. Small Cap
Value.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement (the "Clay Finlay Sub-Advisory Agreement") with Clay
Finlay, Inc. ("Clay Finlay"). Clay Finlay is a wholly owned subsidiary of OMUSH.
For the services provided and expenses incurred pursuant to the Clay Finlay
Sub-Advisory Agreement for the Funds, Clay Finlay is entitled to receive from
the Adviser a sub-advisory fee with respect to the average daily net assets of
such portion of the Funds managed by Clay Finlay, which is computed and paid
monthly at an annual rate equal to a percentage of the portion of each Fund's
average daily net assets so managed, which will be 0.45% for International Large
Cap Equity and 0.50% for Emerging Markets Equity.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement (the "Dwight Sub-Advisory Agreement") with Dwight Asset
Management Company ("Dwight"). Dwight is a wholly owned subsidiary of OMUSH. For
the services provided and expenses incurred pursuant to the Dwight Sub-Advisory
Agreement for the Funds, Dwight is entitled to receive from the Adviser a
sub-advisory fee with respect to the average daily net assets of such portion of
the Funds managed by Dwight, which is computed and paid monthly at an annual
rate equal to a percentage of the portion of each Fund's average daily net
assets so managed, which will be 0.10% for Cash Management, 0.15% for U.S.
Intermediate Fixed Income, 0.15% for U.S. Core Fixed Income and 0.25% for U.S.
High Yield Fixed Income.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement, as amended (the "Heitman Sub-Advisory Agreement") with
Heitman Real Estate Securities LLC ("Heitman"). Heitman is a wholly owned
subsidiary of Heitman LLC, a Delaware limited liability company owned 50% by
Heitman senior executives and 50% by Old Mutual (HFL) Inc., a wholly owned
subsidiary of OMUSH. For the services provided and expenses incurred pursuant to
the Heitman Sub-Advisory Agreement for the Funds, Heitman is entitled to receive
from the Adviser a sub-advisory fee with respect to the average daily net assets
of such portion of the Funds managed by Heitman, which is computed and paid
monthly at an annual rate of 0.40% of the average daily net assets so managed.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement (the "LRC Sub-Advisory Agreement") with Liberty Ridge
Capital, Inc. ("Liberty Ridge"). Liberty Ridge is a wholly owned subsidiary of
OMUSH. Prior to October 1, 2004, Liberty Ridge was known as Pilgrim Baxter &
Associates, Ltd. For the services provided and expenses incurred pursuant to the
LRC Sub-Advisory Agreement for the Funds, Liberty Ridge is entitled to receive
from the Adviser a sub-advisory fee with respect to the average daily net assets
of such portion of the Funds managed by Liberty Ridge, which is computed and
paid monthly at an annual rate equal to a percentage of the portion of each
Fund's average daily net assets so managed, which will be 0.35% for U.S. Large
Cap Growth, 0.35% for U.S. Large Cap Blend, 0.40% for All Cap Blend, 0.45% for
U.S. Mid Cap Equity, 0.45% for U.S. Mid Cap Growth, 0.50% for U.S. Small Cap
Growth and 0.50% for U.S. Small Cap Blend.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement (the "Provident Sub-Advisory Agreement") with Provident
Investment Counsel ("Provident"). Provident is a wholly owned subsidiary of
OMUSH. For the services provided and expenses incurred pursuant to the Provident
Sub-Advisory Agreement for the Funds, Provident is entitled to receive from the
Adviser a sub-advisory fee with respect to the average daily net assets of such
portion of the Funds managed by Provident, which is computed and paid monthly at
an annual rate equal to a percentage of the portion of each Fund's average daily
net assets so managed, which will be 0.35% for U.S. Large Cap Growth and 0.45%
for U.S. Mid Cap Growth.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement (the "Rogge Sub-Advisory Agreement") with Rogge Global
Partners PLC ("Rogge"). Rogge is a wholly owned subsidiary of OMUSH. For the
services provided and expenses incurred pursuant to the Rogge Sub-Advisory
Agreement for the Funds, Rogge is entitled to receive from the Adviser a
sub-advisory fee with respect to the average daily net assets of such portion of
the Funds managed by Rogge, which is computed and paid monthly at an annual rate
of 0.25% of the average daily net assets so managed.
The Trust, on behalf of each Fund, and the Adviser have entered into a
sub-advisory agreement (the "TS&W Sub-Advisory Agreement") with Thompson, Siegel
& Walmsley, Inc. ("TS&W"). TS&W is a wholly owned subsidiary of OMUSH. For the
services provided and expenses incurred pursuant to the TS&W Sub-Advisory
Agreement for the Funds, TS&W is entitled to receive from the Adviser a
sub-advisory fee with respect to the average daily net assets of such portion of
the Funds managed by TS&W, which is computed and paid monthly at an annual rate
equal to a percentage of the portion of each Fund's average daily net assets so
managed, which will be 0.35% for U.S. Large Cap Value, 0.40% for U.S. All Cap
Value, 0.45% for U.S. Mid Cap Value, 0.475% for U.S. Small/Mid Cap Value and
0.50% for U.S. Small Cap Value.
Each Sub-Advisory Agreement obligates the Sub-Adviser, other than Ibbotson, to:
(i) manage the investment operations of the assets managed by the Sub-Adviser
and the composition of the investment portfolio comprising such assets,
including the purchase, retention and disposition thereof in accordance with the
Fund's investment objective, policies and limitations; (ii) provide supervision
of the assets managed by the Sub-Adviser and to determine from time to time what
investment and securities will be purchased, retained or sold on behalf of the
Fund and what portion of the assets managed by the Sub-Adviser will be invested
or held uninvested in cash; and (iii) determine the securities to be purchased
or sold on behalf of the Fund in connection with such assets and to place orders
with or through such persons, brokers or dealers to carry out the policy with
respect to brokerage set forth in the Prospectus or as the Board of Trustees or
the Adviser
76
OLD MUTUAL ADVISOR FUNDS
may direct from time to time, in conformity with federal securities laws. The
Ibbotson Sub-Advisory Agreement obligates Ibbotson to: (i) serve as the
strategic asset allocation consultant and sub-adviser to the Adviser for
investment model creation and maintenance of each Fund, consistent with the
selection of Sub-Advisers, based upon Ibbotson's recommendations related to
appropriate market sectors and investment strategies; (ii) recommend a
continuous investment allocation program for each Fund in accordance with each
Fund's respective investment objectives, policies and restrictions as stated in
such Fund's prospectus; and (iii) monitor and make recommendations to the
Adviser regarding possible changes to the Sub-Advisers and their investment
strategies.
The Trust and Old Mutual Fund Services an indirect, wholly owned subsidiary of
Old Mutual PLC. (the "Administrator") entered into the Administrative Services
Agreement (the "Administrative Agreement"), pursuant to which the Administrator
oversees the administration of the Trust's and each Fund's business and affairs,
including regulatory reporting and all necessary office space, equipment,
personnel and facilities, as well as services performed by various third
parties. Under the Administrative Agreement, the Administrator is entitled to a
fee from the Trust, which is calculated daily and paid monthly at an annual rate
of 0.123% of the average daily net assets of each series portfolio of the Trust,
including the Funds. The Administrative Agreement provides that the
Administrator will not be liable for any error of judgment or mistake of law or
for any loss suffered by the Trust in connection with the matters to which the
Administrative Agreement relates, except a loss resulting from willful
misfeasance, bad faith or gross negligence on the part of the Administrator in
the performance of its duties. The Administrative Agreement will continue in
effect unless terminated by either party upon not less than 90 days' prior
written notice to the other party.
The Administrator and SEI Investments Global Funds Services (the
"Sub-Administrator") entered into a Sub-Administrative Services Agreement (the
"Sub-Administrative Agreement"), pursuant to which the Sub-Administrator assists
the Administrator in connection with the administration of the business and
affairs of the Trust. SEI Investments Management Corporation ("SEI
Investments"), which is a wholly-owned subsidiary of SEI Investments Company,
owns all beneficial interest in the Sub-Administrator. Under the
Sub-Administrative Agreement, the Administrator pays the Sub-Administrator fees
at an annual rate calculated as follows: the greater sum (higher value) which
results from making the following calculations (A) a fee based on the average
daily net assets of the Trust and the PBHG Funds and the PBHG Insurance Series
Fund of: (i) 0.0165% of the first $10 billion, plus (ii) 0.0125% of the next $10
billion, plus (iii) 0.010% of the excess over $20 billion and (B) a fee based on
the aggregate number of Funds of the Trust, PBHG Funds and PBHG Insurance Series
Fund calculated at the sum of between $50,000 and $60,000 per Fund, depending on
the total number of funds. The Agreement provides that the Sub-Administrator
will not be liable for any error of judgment or mistake of law or for any loss
suffered by the Trust in connection with the matters to which the Agreement
relates, except a loss resulting from willful misfeasance, bad faith or
negligence on the part of the Sub-Administrator in the performance of its
duties. The Agreement will continue in effect until August 31, 2005, subject to
certain termination provisions. After this initial term, the Agreement will
renew each year unless terminated by either party upon not less than 90 days'
prior written notice to the other party.
Old Mutual Investment Partners (the "Distributor"), (an indirect, wholly owned
subsidiary of OMUSH), and the Trust are parties to a distribution agreement (the
"Distribution Agreement"), pursuant to which the Distributor serves as principal
underwriter for the Trust's shares. The Distributor receives no compensation for
serving in such capacity, except as provided in separate Distribution Plans and
Service Plans.
The Distribution Agreement is renewable annually. The Distribution Agreement may
be terminated by the Distributor, by a majority vote of the Trustees who are not
"interested persons" (as defined in the 1940 Act) and have no financial interest
in the Distribution Agreement or by a majority vote of the outstanding
securities of the Trust upon not more than 60 days' written notice by either
party or upon assignment by the Distributor.
The Trust has adopted a Distribution Plan for each of Class A and Class C shares
pursuant to Rule 12b-1 under the 1940 Act to enable the Class A and Class C
shares of a Fund to directly and indirectly bear certain expenses relating to
the distribution of such shares. The Trust has also adopted a Service Plan to
enable the Class A and Class C shares of a Fund to directly and indirectly bear
certain expenses relating to the shareholder servicing and/or personal account
maintenance of the holders of such shares. Each of the Distribution Plans and
Service Plan are compensation plans, which means that they compensate the
Distributor or third-party broker-dealer or financial intermediary regardless of
the expenses actually incurred by such persons.
Pursuant to the Distribution Plans for Class A and Class C shares, the Trust
will pay to the Distributor a monthly fee at an annual aggregate rate not to
exceed (i) 0.25% of the average net asset value of the Class A shares of each
Fund and (ii) 0.75% of the average net asset value of the Class C shares of each
Fund, as determined at the close of each business day during the month, which is
to compensate the Distributor for services provided and expenses incurred by it
in connection with the offering and sale of Class A or Class C shares, which may
include, without limitation, the payment by the Distributor to investment
dealers of commissions on the sale of Class A or Class C shares, as set forth in
the then current prospectus or this statement of additional information with
respect to Class A and Class C shares and interest and other financing costs.
The amount of such payments shall be determined by the Trust's disinterested
Trustees from time to time. Currently, Class A shares are not authorized to pay
distributor fees and Class C shares are authorized to pay the maximum amount of
distributor fees.
Pursuant to the Service Plan for Class A and Class C shares, the Trust will pay
to the Distributor or other third-party financial intermediaries a fee at an
annual aggregate rate not to exceed 0.25% of the average net asset value of
Class A and Class C shares, which is for maintaining or improving services
provided to shareholders by the Distributor and investment dealers, financial
institutions and 401(k) plan service providers. The amount of such payments
shall be determined by the Trust's disinterested Trustees from time to time.
Currently, both Class A and Class C shares are authorized to pay the maximum
amount of service fees.
The Distributor will prepare and deliver written reports to the Board of
Trustees of the Trust on a regular basis (at least quarterly) setting forth the
payments made pursuant to the Distribution Plans and the Service Plan, and the
purposes for which such expenditures were made, as well as any supplemental
reports as the Board of Trustees may from time to time reasonably request.
Except to the extent that the Administrator, Sub-Administrator or Adviser may
benefit through increased fees from an increase in the net assets of the Trust
which may have resulted in part from the expenditures, no interested person of
the Trust nor any Trustee of the Trust who is not an "interested person" (as
defined in the 1940 Act) of the Trust had a direct or indirect financial
interest in the operation of the Distribution or Service Plans or any related
agreement.
77
OLD MUTUAL ADVISOR FUNDS
NOTES TO FINANCIAL STATEMENTS -- Continued
- --------------------------------------------------------------------------------
As of July 31, 2005
Of the service and distribution fees the Distributor received for the ten months
ended July 31, 2005, it retained the following:
DISTRIBUTION
SERVICE FEES FEES
----------------------- ----------
CLASS A CLASS C CLASS C
------ ------- -------
Old Mutual Asset Allocation
Conservative Portfolio $ 1,600 $ 5,506 $16,519
Old Mutual Asset Allocation
Balanced Portfolio 3,885 17,766 53,297
Old Mutual Asset Allocation
Moderate Growth Portfolio 4,016 19,542 58,625
Old Mutual Asset Allocation
Growth Portfolio 2,662 8,441 25,323
DST Systems, Inc. serves as the transfer agent and dividend disbursing agent of
the Fund. From time to time, the Fund may pay amounts to third parties that
provide sub-transfer agency and other administrative services relating to the
Fund to persons who beneficially own interests in the Fund.
Wachovia Bank, National Association serves as the custodian for each of the
Funds.
The Funds have entered into a shareholder servicing agreement with Old Mutual
Fund Services to provide shareholder support and other shareholder
account-related services. Old Mutual Fund Services has, in turn, contracted with
Old Mutual Shareholder Services, Inc. (formerly known as PBHG Shareholder
Services, Inc.), ("OMSS"), its wholly owned subsidiary, to assist in the
provision of those services. OMSS received no fees directly from the Funds. The
shareholder service fees are reviewed periodically and approved annually by the
Board of Trustees.
Shareholder service fees paid to Old Mutual Fund Services for the ten months
ended July 31, 2005 were as follows:
Old Mutual Asset Allocation Conservative Portfolio $1,015
Old Mutual Asset Allocation Balanced Portfolio 3,732
Old Mutual Asset Allocation Moderate Growth Portfolio 5,684
Old Mutual Asset Allocation Growth Portfolio 3,690
On September 14, 2004, and revised on May 12, 2005, the Board of Trustees
approved an agreement between the Funds and Old Mutual Fund Services to provide
shareholder related web development and maintenance services. For its services
over the ten months ended July 31, 2005, Old Mutual Fund Services received a fee
of $179,281, which was allocated to each Fund quarterly based on average net
assets.
Officers and trustees of the Funds who are or were officers of the Adviser,
Administrator, Sub-Administrator and the Distributor received no compensation
from the Funds.
4. INTERFUND LENDING
Pursuant to resolutions adopted by the Boards of Trustees of each of Old Mutual
Advisor Funds, PBHG Funds and PBHG Insurance Series Fund (together, the
"Trusts"), on behalf of each series portfolio of the Trusts (the "Funds"), each
of the Funds may lend an amount up to its prospectus-defined limitations to
other Funds. All such lending shall be conducted pursuant to the exemptive order
granted by the Securities and Exchange Commission on August 12, 2003 to the
Trusts and Liberty Ridge Capital, Inc.
The interest rate charged on the loan is the average of the overnight repurchase
agreement rate (highest rate available to the Funds from investments in
overnight repurchase agreements) and the bank loan rate (Federal Funds Rate plus
50 basis points). None of the Funds may borrow more than 10% of its assets.
The Funds had no outstanding borrowings or loans under the Interfund lending
agreement at July 31, 2005 or at any time during the ten months ended July 31,
2005.
5. INVESTMENT TRANSACTIONS
The cost of securities purchased and the proceeds from securities sold and
matured, other than short-term investments, for the Funds, for the ten months
ended July 31, 2005 were as follows:
SALES AND
PURCHASES (000) MATURITIES (000)
--------------- ----------------
Old Mutual Asset Allocation
Conservative Portfolio $31,115 $15,200
Old Mutual Asset Allocation
Balanced Portfolio 76,097 31,237
Old Mutual Asset Allocation Moderate
Growth Portfolio 67,572 20,963
Old Mutual Asset Allocation
Growth Portfolio 33,874 8,253
During the ten months ended July 31, 2005, the Old Mutual Asset Allocation
Conservative Fund, the Old Mutual Asset Allocation Balanced Fund, and the Old
Mutual Asset Allocation Moderate Growth Fund purchased U.S. Government
Securities (000) of $14,640, $22,481 and $12,863, respectively and received
proceeds from the sale and maturities of U.S. Government Securities (000) of
$8,875, $13,554 and $7,272, respectively.
6. FOREIGN HOLDINGS RISK
Each Fund may invest in foreign securities. Investing in the securities of
foreign issuers involves special risks and considerations not typically
associated with investing in U.S. companies. These risks and considerations
include differences in accounting, auditing and financial reporting standards,
generally higher commission rates on foreign portfolio transactions, the
possibility of expropriation or confiscatory taxation, adverse changes in
investment or exchange control regulations, political instability which could
affect U.S. investment in foreign countries and potential restrictions on the
flow of international capital and currencies. Foreign issuers may also be
subject to less government regulation than U.S. companies. Moreover, the
dividends and interest payable on foreign securities may be subject to foreign
withholding taxes, thus reducing the net amount of income available for
distribution to a Fund's shareholders. Further, foreign securities often trade
with less frequency and volume than domestic securities and, therefore, may
exhibit greater price volatility. Changes in foreign exchange rates will affect,
favorably or unfavorably, the value of those securities which are denominated or
quoted in currencies other than the U.S. dollar.
7. FEDERAL TAX INFORMATION
Each Fund has qualified and intends to continue to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code and to
distribute substantially all of its taxable income and net capital gains.
Accordingly, no provision has been made for Federal income taxes.
Dividends from net investment income and distributions from net realized capital
gains are determined in accordance with U.S. Federal income tax regulations,
which may differ from those amounts determined under accounting
78
OLD MUTUAL ADVISOR FUNDS
principles generally accepted in the United States of America. These book/tax
differences are either temporary or permanent in nature. To the extent these
differences are permanent, they are charged or credited to paid-in-capital or
accumulated net realized gain, as appropriate, in the period that the
differences arise.
Accordingly, the following permanent differences as of July 31, 2005, primarily
attributable to certain net operating losses, different treatment for gains and
losses on paydowns of mortgage- and asset-backed securities for tax purposes,
and return of capital which, for tax purposes, are not available to offset
future income, were reclassified to the following accounts.
INCREASE DECREASE
ACCUMULATED UNDISTRIBUTED
NET REALIZED NET INVESTMENT
GAIN (000) INCOME (000)
------------ ------------
Old Mutual Asset Allocation
Conservative Portfolio $26 $(26)
Old Mutual Asset Allocation
Balanced Portfolio 57 (57)
Old Mutual Asset Allocation
Moderate Growth Portfolio 60 (60)
Old Mutual Asset Allocation
Growth Portfolio -- --
The tax character of dividends and distributions declared during the period
ended July 31, 2005 was as follows:
ORDINARY
INCOME TOTAL
(000) (000)
------ ----
Old Mutual Asset Allocation
Conservative Portfolio $113 $113
Old Mutual Asset Allocation
Balanced Portfolio 163 163
Old Mutual Asset Allocation
Moderate Growth Portfolio 9 9
Old Mutual Asset Allocation
Growth Portfolio 7 7
As of July 31, 2005, the components of Distributable Earnings were as follows:
UNDISTRIBUTED POST OTHER
ORDINARY UNREALIZED OCTOBER TEMPORARY
INCOME APPRECIATION CURRENCY DIFFERENCES TOTAL
(000) (000) LOSSES (000) (000)
-------- ---------- -------- -------- ----
Old Mutual Asset
Allocation
Conservative
Portfolio $153 $ 429 $(41) $(23) $ 518
Old Mutual Asset
Allocation
Balanced Portfolio 398 2,418 (83) (51) 2,682
Old Mutual Asset
Allocation
Moderate Growth
Portfolio 239 2,770 (75) (28) 2,906
Old Mutual Asset
Allocation
Growth Portfolio 153 2,140 (5) (23) 2,265
The Federal tax cost, aggregate gross unrealized appreciation and depreciation
of securities held by each Fund at July 31, 2005 were as follows:
NET
FEDERAL UNREALIZED UNREALIZED UNREALIZED
TAX COST APPRECIATION DEPRECIATION APPRECIATION
(000) (000) (000) (000)
----------- ------------ ------------ ------------
Old Mutual Asset Allocation
Conservative Portfolio $19,652 $ 617 $ (188) $ 429
Old Mutual Asset Allocation
Balanced Portfolio 52,966 3,020 (602) 2,418
Old Mutual Asset Allocation
Moderate Growth
Portfolio 51,959 3,890 (1,120) 2,770
Old Mutual Asset Allocation
Growth Portfolio 27,522 2,519 (379) 2,140
79
OLD MUTUAL ADVISOR FUNDS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of the
Old Mutual Advisor Funds:
In our opinion, the accompanying statements of net assets, and the related
statements of operations and statement of changes in net assets and the
financial highlights present fairly, in all material respects, the financial
position of the Old Mutual Asset Allocation Conservative Portfolio, the Old
Mutual Asset Asset Allocation Balanced Portfolio, the Old Mutual Asset Asset
Allocation Moderate Growth Portfolio, and the Old Mutual Asset Asset Allocation
Growth Portfolio (constituting Old Mutual Advisor Funds, hereafter referred to
as the "Fund") at July 31, 2005, the results of its operations, the changes in
its net assets and the financial highlights for the period September 30, 2004
(commencement of operations) through July 31, 2005, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with the standards of the Public Company Accounting Oversight Board (United
States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at July 31, 2005 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
PricewaterhouseCoopers LLP
September 28, 2005
80
OLD MUTUAL ADVISOR FUNDS
NOTICE TO SHAREHOLDERS (UNAUDITED)
- --------------------------------------------------------------------------------
For shareholders that do not have a July 31, 2005 tax year end, this notice is
for informational purposes only. For shareholders with a July 31, 2005 tax year
end, please consult your tax advisor as to the pertinance of this notice. For
the fiscal year ended July 31, 2005, each Portfolio is designating to following
items with regard to distributions paid during the year.
QUALIFYING
FOR CORPORATE
LONG TERM ORDINARY DIVIDENDS QUALIFYING U.S.
CAPITAL GAIN INCOME TOTAL RECEIVED DIVIDEND GOVERNMENT
DISTRIBUTIONS DISTRIBUTIONS DISTRIBUTIONS DEDUCTION (1) INCOME (2) INTEREST (3)
------------- ------------- ------------- ------------- ---------- -----------
Old Mutual Asset Allocation
Conservative Portfolio 0.00% 100.00% 100.00% 10.14% 16.04% 14.18%
Old Mutual Asset Allocation
Balanced Portfolio 0.00% 100.00% 100.00% 22.40% 34.10% 11.07%
Old Mutual Asset Allocation
Moderate Growth Portfolio 0.00% 100.00% 100.00% 47.76% 41.95% 9.20%
Old Mutual Asset Allocation
Growth Portfolio 0.00% 100.00% 100.00% 60.36% 54.20% 0.00%
(1) QUALIFYING DIVIDENDS REPRESENT DIVIDENDS WHICH QUALIFY FOR THE CORPORATE
DIVIDENDS RECEIVED DEDUCTION AND ARE REFLECTED AS A PERCENTAGE OF ORDINARY
INCOME DISTRIBUTIONS (THE TOTAL OF SHORT TERM CAPITAL GAIN AND NET
INVESTMENT INCOME DISTRIBUTIONS).
(2) THE PERCENTAGE IN THIS COLUMN REPRESENTS THE AMOUNT OF "QUALIFYING DIVIDEND
INCOME" AS CREATED BY THE JOBS AND GROWTH TAX RELIEF RECONCILIATION ACT OF
2003 AND IS REFLECTED AS A PERCENTAGE OF ORDINARY INCOME DISTRIBUTIONS (THE
TOTAL OF SHORT TERM CAPITAL GAIN AND NET INVESTMENT INCOME DISTRIBUTIONS).
IT IS THE INTENTION OF EACH OF THE AFOREMENTIONED FUNDS TO DESIGNATE THE
MAXIMUM AMOUNT PERMITTED BY LAW.
(3) "U.S. GOVERNMENT INTEREST" REPRESENTS THE AMOUNT OF INTEREST THAT WAS
DERIVED FROM DIRECT U.S. GOVERNMENT OBLIGATIONS AND DISTRIBUTED DURING THE
FISCAL YEAR. THIS AMOUNT IS REFLECTED AS A PERCENTAGE OF TOTAL ORDINARY
INCOME DISTRIBUTIONS (THE TOTAL OF SHORT TERM CAPITAL GAIN AND NET
INVESTMENT INCOME DISTRIBUTIONS). GENERALLY, INTEREST FROM DIRECT U.S.
GOVERNMENT OBLIGATIONS IS EXEMPT FROM STATE INCOME TAX. HOWEVER, FOR
SHAREHOLDERS OF THE OLD MUTUAL ADVISOR FUNDS WHO ARE RESIDENTS OF
CALIFORNIA, CONNECTICUT AND NEW YORK, THE STATUTORY THRESHHOLD REQUIREMENTS
WERE NOT SATISFIED TO PERMIT EXEMPTION OF THESE AMOUNTS FROM STATE INCOME.
81
OLD MUTUAL ADVISOR FUNDS
PROXY VOTING
A description of the guidelines that the Old Mutual Advisor Funds or the Funds'
investment adviser/sub-advisers use to vote proxies relating to portfolio
securities is available by request by calling 1.888.774.5050, at
www.oldmutualcapital.com or on the SEC's website at www.sec.gov.
Information about how the Funds voted proxies relating to portfolio securities
during the 9-month period ended June 30, 2005 is available at
www.oldmutualcapital.com or on the SEC's website at www.sec.gov.
PORTFOLIO HOLDINGS
The Trust files a complete schedule of portfolio holdings with the SEC for the
first and third quarters of its fiscal year on Form N-Q. The Trust's Forms N-Q
are available at www.sec.gov, or may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information about the Public Reference Room
may be obtained by calling 1-800-SEC-0330.
82
OLD MUTUAL ADVISOR FUNDS
ACTIVITIES AND COMPOSITION OF THE BOARD OF TRUSTEES AND OFFICERS OF THE TRUST
- --------------------------------------------------------------------------------
As of July 31, 2005
TRUSTEES AND OFFICERS
The management and affairs of the Trust are supervised by the Trustees under
the laws of the State of Delaware. The Trustees and executive officers of the
Trust and their principal occupations for the last five years are set forth
below. Each may have held other positions with the named companies during that
period. The address for each of the Trustees and executive officers of the
Trust is 4643 South Ulster Street, 6th Floor, Denver, Colorado 80237.
Additional information about the Portfolio's Trustees and Officers is available
in the Trust's Statements of Additional Information, which can be obtained free
of charge by calling 888.774.5050 or by visiting www.oldmutualcapital.com.
- ------------------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
NUMBER
OF
FUNDS IN
THE
TERM OF OLD MUTUAL
OFFICE* FUND
AND PRINCIPAL COMPLEX OTHER
POSITION(S) LENGTH OCCUPATION(S) OVERSEEN DIRECTORSHIPS
HELD WITH OF TIME DURING BY HELD BY
NAME AND AGE THE TRUST SERVED PAST 5 YEARS TRUSTEE TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
John R. Bartholdson Trustee, Trustee Chief Financial 31 The Triumph Group,
(Age: 61) Audit since 2004 Officer, The Triumph Inc., PBHG Funds and
Committee Group, Inc. PBHG Insurance
Chariman (manufacturing). Series Fund, ING
Clarion Real Estate
Income Fund and ING
Clarion Global Real
Estate Income Fund.
- ------------------------------------------------------------------------------------------------------------------------------------
Walter W. Driver, Jr. Trustee Trustee Chairman, King & 5 Total Systems
(Age: 60) since 2005 Spalding LLP (law Service, Inc.
firm)
- ------------------------------------------------------------------------------------------------------------------------------------
Robert M. Hamje Trustee Trustee President and Chief 5 TS&W/Claymore
(Age: 63) since 2004 Investment Officer, Tax-Advantaged
TRW Investment Balanced Fund.
Management Company
(investment
management).
- ------------------------------------------------------------------------------------------------------------------------------------
Jarrett B. Kling Trustee Trustee Managing Director, ING 5 Hirtle Callaghan
(Age: 62) since 2004 Clarion Real Estate Securities Trust; ING Clarion
(investment adviser). Real Estate Income
Fund, ING Clarion
Global Real Estate
Income Fund, ING
Clarion.
- ------------------------------------------------------------------------------------------------------------------------------------
L. Kent Moore Chairman Trustee Managing Director, High Sierra 5 TS&W/Claymore
(Age: 49) of the since 2004 Energy, LP, since October Tax-Advantaged
Board 2004; President, Eagle River Balanced Fund.
and Trustee Ventures, LLC (private
investment fund); Portfolio
Manager, Janus Capital (money
management).
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Bullock** Trustee Trustee President and Chief Executive 5 Liberty Ridge
(Age: 49) since 2004 Officer, Old Mutual Capital, Capital, Old Mutual
Inc., since 2004. President Capital, Inc., Old
and Director, Liberty Ridge Mutual Investment
Capital Inc. since July 2003. Partners, Old Mutual
Chief Executive Officer, Fund Services, and
Liberty Ridge Capital Inc.; Old Mutual
Trustee, Old Mutual Investment Shareholder
Partners, and Old Mutual Fund Services, Inc.
Services; and Director Old
Mutual Shareholder Services,
Inc. since November 2003.
President, PBHG Funds and PBHG
Insurance Series Fund, since
November 2003. Chief Operating
Officer, Liberty Ridge Capital
July 2003 - March 2004.
President and Chief Executive
Officer, Transamerica Capital,
Inc. 1998-2003.
- ------------------------------------------------------------------------------------------------------------------------------------
* Trustee of the Trust until such time as his or her successor is duly
elected and appointed.
** Mr. Bullock is a Trustee who may be deemed to be an "interested person" of
the Trust, as that term is defined in the 1940 Act, because he is a
Director of the Adviser.
83
OLD MUTUAL ADVISOR FUNDS
ACTIVITIES AND COMPOSITION OF THE BOARD OF TRUSTEES AND OFFICERS OF THE TRUST
- --------------------------------------------------------------------------------
As of July 31, 2005
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
TERM OF
OFFICE
AND PRINCIPAL
POSITION(S) LENGTH OCCUPATION(S)
HELD WITH OF TIME DURING
NAME AND AGE THE TRUST SERVED** PAST 5 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
David J. Bullock President Since Director, President and Chief Executive Officer
(Age: 49) and Chief 2004 since 2004, Old Mutual Capital, Inc. Trustee and
Executive President since 2004, Old Mutual Advisor Funds.
Officer Chief Executive Officer, President and Director
since 2003 and Chief Operating Officer in 2003,
Liberty Ridge Capital, Inc. Chief Executive
Officer and Trustee since 2003, Old Mutual
Investment Partners. Trustee since 2003, Old
Mutual Fund Services. Director since 2003, Old
Mutual Shareholder Services, Inc. President since
2003, PBHG Insurance Series Fund. President and
Chief Executive Officer from 1998 to 2003,
Transamerica Capital, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Mark E. Black Treasurer, Since Treasurer, Chief Financial Officer and Controller,
(Age: 45) Chief 2005 PBHG Insurance Series Fund since July 2005;
Financial Treasurer, Chief Financial Officer and Controller,
Officer, Old Mutual Advisor Funds since 2004; Chief
Controller Financial Officer, Chief Administrative Officer,
Executive Vice President and Treasurer of Old
Mutual Capital, Inc. since July 2004; Chief
Financial Officer, Chief Administrative Officer of
Old Mutual Investment Partners since September,
2004; Senior Vice President and Chief Financial
Officer of Transamerica Capital, Inc. from April
2000 through June 2004; Chief Financial Officer of
Coldwell Banker Moore & Company (Denver Metro)
(formerly Moore and Company Realtor) from 1997
through March 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
John M. Zerr Vice President Since Chief Operating Officer since 2004, Senior Vice
(Age: 43) and Secretary 2004 President since 2001, and General Counsel and
Secretary since 1996, Liberty Ridge Capital, Inc.
Executive Vice President, Secretary and General
Counsel since 2004, Old Mutual Capital, Inc. Chief
Operating Officer since 2004 and General Counsel
and Secretary since 1998, Old Mutual Investment
Partners. General Counsel and Secretary since
1998, Old Mutual Fund Services. General Counsel
and Secretary since 2001, Old Mutual Shareholder
Services, Inc. Vice President and Secretary since
2004, Old Mutual Advisor Funds. Vice President and
Secretary since 1997, PBHG Funds. General Counsel
and Secretary from 1996 to 2002, Pilgrim Baxter
Value Investors, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Brian C. Dillon Vice President Since Vice President and Chief Compliance Officer since
(Age: 42) and Chief 2004 2001, Liberty Ridge Capital, Inc. Vice President
Compliance and Chief Compliance Officer since 2004, Old
Officer Mutual Capital, Inc. Vice President, Chief
Compliance Officer and Registered Principal since
2001, Old Mutual Investment Partners. Chief
Compliance Officer since 2001, Old Mutual Fund
Services. Chief Compliance Officer since 2001, Old
Mutual Shareholder Services, Inc. Vice President
and Chief Compliance Officer since 2004, Old
Mutual Advisor Funds. Vice President since 2001
and Chief Compliance Officer since 2004, PBHG
Funds. Chief Compliance Officer from 2001 to 2002,
Pilgrim Baxter Value Investors, Inc. Chief
Compliance Officer from 2001 to 2003, Pilgrim
Baxter Private Equity Advisor. Vice President and
Deputy Compliance Director from 1995 to 2001,
Delaware Investments.
- ------------------------------------------------------------------------------------------------------------------------------------
84
OLD MUTUAL ADVISOR FUNDS
ACTIVITIES AND COMPOSITION OF THE BOARD OF TRUSTEES AND OFFICERS OF THE TRUST
- --------------------------------------------------------------------------------
As of July 31, 2005
- ------------------------------------------------------------------------------------------------------------------------------------
OFFICERS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
TERM OF
OFFICE
AND PRINCIPAL
POSITION(S) LENGTH OCCUPATION(S)
HELD WITH OF TIME DURING
NAME AND AGE THE TRUST SERVED** PAST 5 YEARS
- ------------------------------------------------------------------------------------------------------------------------------------
Robert E. Putney, III Vice President Since Senior Vice President, Deputy General Counsel and
(Age: 45) and Assistant 2004 Assistant Secretary since 2004, Old Mutual
Secretary Capital, Inc. Deputy General Counsel since 2004,
Vice President and Assistant Secretary since 2001
and Senior Legal Counsel from 2001 to 2004,
Liberty Ridge Capital, Inc. Senior Vice President
and Deputy General Counsel since 2004, Assistant
Secretary since 2001 and Senior Legal Counsel and
Vice President from 2001 to 2004, Old Mutual
Investment Partners. Senior Vice President and
Deputy General Counsel since 2004, Assistant
Secretary since 2001 and Senior Legal Counsel and
Vice President from 2001 to 2004, Old Mutual Fund
Services. Senior Vice President and Deputy General
Counsel since 2004, Assistant Secretary since 2001
and Senior Legal Counsel and Vice President from
2001 to 2004, Old Mutual Shareholder Services,
Inc. Vice President and Assistant Secretary since
2004, Old Mutual Advisor Funds. Vice President and
Assistant Secretary since 2001, PBHG Funds. Senior
Counsel and Assistant Secretary from 2001 to 2002,
Pilgrim Baxter Value Investors, Inc. Director and
Senior Counsel from 1997 to 2001, Merrill Lynch
Investment Managers, L.P. and Princeton
Administrators, L.P. and holding various other
positions with these companies from 1991 to 1997;
Secretary of various Merrill Lynch and Mercury
open-end funds, as well as Somerset Exchange Fund
and The Europe Fund, Inc. until December 2001.
- ------------------------------------------------------------------------------------------------------------------------------------
William P. Schanne Assistant Since Fund Administration Associate, Old Mutual Fund
(Age: 32) Treasurer 2004 Services and Liberty Ridge Capital since August
2001. Assistant Treasurer, PBHG Funds and PBHG
Insurance Series Fund, both since December 2001.
Fund Accounting Supervisor, PFPC, Inc., 1999-2001.
Fund Accountant, PFPC, Inc., 1998-1999.
- ------------------------------------------------------------------------------------------------------------------------------------
** Officer or the Trust until such time as his or her successor is duly elected
and qualified.
85
OLD MUTUAL ADVISOR FUNDS
ACTIVITIES AND COMPOSITION OF THE BOARD OF TRUSTEES AND OFFICERS OF THE TRUST
INVESTMENT ADVISORY AGREEMENT -- MATTERS CONSIDERED BY THE BOARD
The Board considered and approved the initial investment advisory agreement
between Old Mutual Asset Allocation Portfolios (each a "Fund" and collectively
the "Funds") and its investment advisor, Old Mutual Capital, Inc. ("Adviser"),
in September 2004. The Board also considered the services provided by and fees
paid to each of the sub-advisers, and approved each sub-advisory agreement (the
advisory agreement and each sub-advisory agreement are collectly referred to as
"Advisory Agreements"). The Board assessed the nature of the services to be
provided, the quality of the services expected to be provided; fees payable for
the services; projected total expenses of each Fund; the commitment of the
Adviser to cap certain Fund expenses through the contractual deferral of
advisory fees and/or reimbursement of expenses, and the fact that Adviser may
seek payment of such deferred fees or reimbursement of such absorbed expenses
within two fiscal years after the fiscal year in which fees were deferred or
expenses were absorbed; the expected profitability of the Adviser with respect
to its relationship with the Funds; soft-dollar and other service benefits
received by the Adviser, including, sources of revenue to affiliates of the
Adviser from the Funds through administration fees and website services fees;
capabilities and financial condition of the Adviser and the Sub-Advisers; and
current economic and industry trends.
In approving the Advisory Agreements, the Board considered:
o that the level of fees to be charged to the Funds was comparable to
the fees charged by other investment advisers to other funds with
similar allocation strategies and therefore reasonable, considering
the additional services to be provided by the Adviser;
o that each sub-adviser [other than Ibbotson Associates Advisers LLC
("Ibbotson")] is under common control with the Adviser which would
allow for greater coordination and monitoring of the nature and
quality of sub-advisory services;
o that the unique and active asset allocation management structure,
which included the allocation overlay provided by Ibbotson, justified
the level of fees being charged;
o that the Adviser was willing to voluntarily defer its fees and
reimburse expenses to reduce Fund expenses, indicating a high level of
commitment on the part of the Adviser;
o that the Investment Advisory Agreement contained breakpoints, which
would allow shareholders to realize economies of scale as Fund assets
increased;
o that the affiliated sub-advisers were experienced and possessed
significant experience in managing particular asset classes;
o that the Adviser had demonstrated its commitment to provide sufficient
staffing resources and capabilities to manage the Funds, including the
retention of personnel with relevant investment management experience;
and
o that the Adviser appeared to have overall high quality in terms of its
personnel, operations, financial condition, investment management
capabilities, methodologies and performance.
The Board reviewed management fees in the context of the Adviser's anticipated
profitability on a Portfolio by Portfolio basis. In addition, the Board
considered an analysis prepared by the Adviser in consultation with an
independent third party, comparing each Portfolio's expected expense ratio and
advisory fee with comparable mutual funds. The Board noted that comparison of
the maximum annual advisory fees to fees charged to a customized peer group of
several mutual funds and considered the fact that the fee was higher than some
of those charged to several funds in each peer group. With respect to each
Portfolio, it was noted that:
o The total expenses of 1.50% of the Old Mutual Conservative Portfolio,
Class A shares (after waivers or reimbursement) were lower than four
funds in the peer group, and higher than six funds in the peer group;
that the total expenses of 2.25% of Class C shares (after waivers or
reimbursement) were lower than four funds in the peer group, and
higher than five funds in the peer group.
o The total expenses of 1.55% of the Old Mutual Balanced Portfolio,
Class A shares (after waivers or reimbursement) were lower than two
funds in the peer group, and higher than five funds in the peer group;
that the total expenses of 2.30% of Class C shares (after waivers or
reimbursement) were lower than two funds in the peer group, and higher
than four funds in the peer group.
o The total expenses of 1.55% of the Old Mutual Moderate Growth
Portfolio, Class A shares (after waivers or reimbursement) were lower
than two funds in the peer group, and higher than five funds in the
peer group; that the total expenses of 2.30% of Class C shares (after
waivers or reimbursement) were lower than two funds in the peer group,
and higher than four funds in the peer group.
o The total expenses of 1.60% of the Old Mutual Growth Portfolio, Class
A shares (after waivers or reimbursement) were lower than two funds in
the peer group, and higher than five funds in the peer group; that the
total expenses of 2.35% of Class C shares (after waivers or
reimbursement) were lower than two funds in the peer group, and higher
than four funds in the peer group.
After the independent Trustees deliberated in executive session, the entire
Board, including all of the independent Trustees, approved the Advisory
Agreements, concluding that the advisory fees were reasonable in light of the
nature and quality of the services to be provided.
86
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OLD MUTUAL ADVISOR FUNDS
FOR MORE INFORMATION ABOUT THE
OLD MUTUAL ADVISOR FUNDS, CONTACT US:
BY TELEPHONE
Shareholder Services 888.744.5050
Investment Professionals 888.772.2888
BY MAIL
Old Mutual Advisor Funds
P.O. Box 219398
Kansas City, MO 64121-7250
IN PERSON
Old Mutual Advisor Funds
4643 South Ulster Street, 6th Floor
Denver, CO 80237
ON THE INTERNET
www.oldmutualcapital.com
This annual report is intended for the information of Old Mutual AdvisorFunds
shareholders, but may be used by prospective investors when preceded or
accompanied by a current prospectus. Portfolios described in this report are
part of the Old Mutual AdvisorFunds. Investors should carefully consider the
investment objectives, risks, charges and expenses before investing. Please call
1.888.744.5050 for a free prospectus that contains this and other important
information. Read the prospectus carefully (OLD MUTUAL INVESTMENT PARTNERS, NASD
MEMBER FIRM, DISTRIBUTOR) before investing.
D-05-323, 09/2005
OLD MUTUAL COPPER ROCK EMERGING GROWTH FUND
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2005
OLD MUTUAL
COPPER ROCK
EMERGING GROWTH FUND
--------------------
ASSETS:
Cash $2,500,000
----------
TOTAL ASSETS 2,500,000
----------
NET ASSETS $2,500,000
==========
NET ASSETS CONSIST OF:
Par value $ --
Paid in capital in excess of par value 2,500,000
----------
NET ASSETS $2,500,000
==========
NET ASSETS:
Shares 2,500,000
SHARES OUTSTANDING
Shares 250,000
NET ASSET VALUE PER SHARE
(NET ASSETS + SHARES OUTSTANDING):
==========
Shares $ 10.00
==========
The accompanying notes are an integral part of the financial statements.
OLD MUTUAL COPPER ROCK EMERGING GROWTH FUND
NOTES TO FINANCIAL STATEMENT
JULY 31, 2005
1. ORGANIZATION
Old Mutual Advisor Funds (the "Trust"), a Delaware statutory trust
effective May 26, 2004, is registered under the Investment Company Act
of 1940, as amended, as an open-end management investment company. The
Trust currently offers five series portfolios, the Old Mutual Asset
Allocation Conservative Portfolio, the Old Mutual Asset Allocation
Balanced Portfolio, the Old Mutual Asset Allocation Moderate Growth
Portfolio, the Old Mutual Asset Allocation Growth Portfolio (whose
financial statements are presented separately) and the Old Mutual
Copper Rock Emerging Growth Fund (the "Fund"). Shareholders may
purchase the shares of the Fund through three separate classes,
Institutional Class, Class A and Class C shares, which have different
distribution costs, voting rights and dividends. Except for these
differences, each Class share of the Fund represents an equal
proportionate interest in the Fund. The Fund is classified as a
diversified management investment company. The Trust's prospectus
provides a description of the Fund's investment objective, policies and
investment strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS --The
preparation of financial statements, in conformity with accounting
principles generally accepted in the United States of America, requires
management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenue and expenses during the reporting period.
Actual results could differ from those estimates.
SECURITY VALUATION -- Investment securities of the Fund that are listed
on a securities exchange, and for which market quotations are readily
available, are valued at the last quoted sales price at the close of
trading on the New York Stock Exchange (normally 4:00 p.m., Eastern
Time). Investment securities of the Fund that are quoted on a national
market system are valued at the official closing price, or if there is
none, at the last sales price. If there is no such reported sale, these
securities and unlisted securities for which market quotations are not
readily available, are valued at the last bid price. However, debt
securities (other than short-term obligations), including listed
issues, are valued on the basis of valuations furnished by a pricing
service which utilizes electronic data processing techniques to
determine valuations for normal institutional size trading units of
debt securities, without exclusive reliance upon exchange or
over-the-counter prices. Short-term obligations with maturities of 60
days or less may be valued at amortized cost, which approximates market
value. Under this valuation method, acquisition discounts and premiums
are accreted and amortized ratably to maturity and are included in
interest income. Foreign securities may be valued based upon quotations
from the primary market in which they are traded, and are translated
from the local currency into U.S. dollars using current exchange rates.
In addition, if quotations are not readily available, or if the values
have been materially affected by events occurring after the closing of
a foreign market, assets may be valued by another method that the Board
of Trustees believes accurately reflects fair value.
OPTIONS AND FUTURES -- Options are valued at the last quoted sales
price. If there is no such reported sale on the valuation date, long
positions are valued at the most recent bid price, and short positions
are valued at the most recent ask price. Futures are valued at the
settlement price established each day by the board of exchange on which
they are traded. The daily settlement prices for financial futures are
provided by an independent source. Security Transactions and Investment
Income--Security transactions are accounted for on the date the
securities are purchased or sold (trade date). Dividend income and
distributions to shareholders are recognized on the ex-dividend date;
interest income is recognized on the accrual basis and includes
amortization of premiums and accretion of discounts on investments.
Costs used in determining realized capital gains and losses on the sale
of investment securities are those of the specific securities sold
adjusted for the accretion and amortization of acquisition discounts
and premiums during the respective holding periods.
DIVIDENDS -- Dividends from net investment income for the Fund are
declared at least annually, if available. Distributions of net realized
capital gains, for each Fund, are generally made to shareholders
annually, if available.
FOREIGN WITHHOLDING TAXES -- The Fund may be subject to taxes imposed
by countries in which they invest with respect to their investments in
issuers existing or operating in such countries. Such taxes are
generally based on income earned. The Fund accrues such taxes when the
related income is earned.
FORWARD FUTURE CURRENCY CONTRACTS -- The Fund may enter into forward
foreign currency contracts as hedges against specific transactions,
fund positions or anticipated fund positions. All commitments are
"marked-to-market" daily at the applicable foreign exchange rate, and
any resulting unrealized gains or losses are recorded accordingly. The
Fund realizes gains and losses at the time the forward contracts are
extinguished. Unrealized gains or losses on outstanding positions in
forward foreign currency contracts held at the close of the period are
recognized as ordinary income or loss for Federal income tax purposes.
The Fund could be exposed to risk if the counterparties to the
contracts are unable to meet the terms of the contract and from
unanticipated movements in the value of a foreign currency relative to
the U.S. dollar.
Finally, the risk exists that losses could exceed amounts disclosed on
the Statement of Net Assets or Statement of Assets and Liabilities.
TRI-PARTY REPURCHASE AGREEMENTS -- Securities pledged as collateral for
repurchase agreements are held by a third party custodian bank until
the respective agreements mature. Provisions of the repurchase
agreements and procedures adopted by the Fund' Board of Trustees
requires that the market value of the collateral including accrued
interest thereon is sufficient in the event of default by the
counterparty. If the counterparty defaults and the value of the
collateral declines, or if the counterparty enters into insolvency
proceedings, realization of the collateral by a Fund may be delayed or
limited.
TBA PURCHASE COMMITMENTS -- The Fund may enter into "TBA" (to be
announced) purchase commitments to purchase securities for a fixed
price at a future date, typically not exceeding 45 days. TBA purchase
commitments may be considered securities in themselves, and involve a
risk of loss if the value of the security to be purchased declines
prior to settlement date, which risk is in addition to the risk of
decline in the value of each Fund's other assets. Unsettled TBA
purchase commitments are valued at the current market value of the
underlying securities, according to the procedures described under
"Security Valuation" above.
MORTGAGE DOLLAR ROLLS -- The Fund may enter into mortgage dollar rolls
(principally using TBA's) in which each Fund sells mortgage securities
for delivery in the current month and simultaneously contracts to
repurchase substantially similar securities at an agreed-upon price on
a fixed date. Each Fund accounts for such dollar rolls under the
purchases and sales method and receives compensation as consideration
for entering into the commitment to repurchase. Each Fund must maintain
liquid securities having a value not less than the repurchase price
(including accrued interest) for such dollar rolls. The market value of
the securities that each Fund is required to purchase may decline below
the agreed upon repurchase price of those securities.
The counterparty receives all principal and interest payments,
including prepayments, made in respect of a security subject to such a
contract while it is the holder. Mortgage dollar rolls may be renewed
with a new purchase and repurchase price and a cash settlement made on
settlement date without physical delivery of the securities subject to
the contract. Each Fund engages in dollar rolls for the purpose of
enhancing its yield, principally by earning a negotiated fee.
FOREIGN CURRENCY TRANSLATION-- The books and records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars on the following basis:
(I) market value of investment securities, other assets and
liabilities at the current rate of exchange; and
(II) purchases and sales of investment securities, income and
expenses at the relevant rates of exchange prevailing on the
respective dates of such transactions.
The Fund does not isolate that portion of gains and losses on
investment securities that are due to changes in the foreign exchange
rates from that which is due to changes in market prices of such
securities. The Fund reports gains and losses on foreign currency
related transactions as components of realized gains for financial
reporting purposes, whereas such components are treated as ordinary
income or loss for Federal income tax purposes.
FUTURES CONTRACTS-- The Fund may utilize futures contracts primarily to
hedge against changes in security prices. Upon entering into a futures
contract, the Fund will deposit securities for the initial margin with
its custodian in a segregated account. Subsequent payments, which are
dependent on the daily fluctuations in the value of the underlying
instrument, are made or received by the Fund each day (daily variation
margin) and are recorded as unrealized gains or losses until the
contracts are closed. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the proceeds from
(or cost of ) the closing transactions and the Fund basis in the
contract. Risks of entering into futures contracts include the
possibility that a change in the value of the contract may not
correlate with the changes in the value of the underlying instruments.
Second, it is possible that a lack of liquidity for futures contracts
could exist in the secondary market, resulting in an inability to close
a futures position prior to its maturity date. Third, the purchase of a
futures contract involves the risk that the Fund could lose more than
the original margin deposit required to initiate the futures
transaction.
OPTIONS-- The Fund may write or purchase financial options contracts
primarily to hedge against changes in security prices, or securities
that the Fund intends to purchase, against fluctuations in fair value
caused by changes in prevailing market interest rates. When the Fund
writes or purchases an option, an amount equal to the premium received
or paid by the Fund is recorded as a liability or an asset and is
subsequently adjusted to the current market value of the option written
or purchased. Premiums received or paid from writing or purchasing
options which expire unexercised are treated by the Fund on the
expiration date as realized gains or losses. The difference between the
premium and the amount paid or received on affecting a closing purchase
or sale transaction, including brokerage commissions, is also treated
as a realized gain or loss. If an option is exercised, the premium paid
or received is added to the cost of the purchase or proceeds from the
sale in determining whether the Fund have realized a gain or a loss on
investment transactions. The Fund as writers of an option may have no
control over whether the underlying securities may be sold (call) or
purchased (put) and as a result bears the market risk of an unfavorable
change in the price of the security underlying the written option.
COLLATERALIZED MORTGAGE OBLIGATIONS (CMOS) -- CMOs are hybrids between
mortgage-backed bonds and mortgage pass-through securities. Similar to
a bond, CMOs usually pay interest monthly and have a more focused range
of principal payment dates than pass-through securities. While CMOs may
be collateralized by whole mortgage loans, CMOs are more typically
collateralized by mortgage-backed securities guaranteed by Government
National Mortgage Association, Federal Home Loan Mortgage Corporation,
or Federal National Mortgage Association and their income streams. A
Real Estate Mortgage Investment Conduit (REMIC) is a CMO that qualifies
for special tax treatment under the Internal Revenue Code of 1986, as
amended, and invests in certain mortgages primarily secured by
interests in real property and other permitted investments. CMOs are
structured into multiple classes, each bearing a different stated
maturity. Each class of CMO or REMIC certificate, often referred to as
a "tranche," is issued at a specific interest rate and must be fully
retired by its final distribution date. Generally, all classes of CMOs
or REMIC certificates pay or accrue interest monthly. Investing in the
lowest tranche of CMOs and REMIC certificates involves risks similar to
those associated with investing in equity securities.
OTHER -- Expenses that are directly related to the Fund are charged
directly to the Fund. Other operating expenses of the Trust are
prorated to the Fund on the basis of relative net assets. Class
specific expenses, such as 12b-1, distribution and service fees, are
borne by that class. Income, other expenses and realized and unrealized
gains and losses of a Fund are allocated to the respective class on the
basis of the relative net assets each day. The Fund has an arrangement
with the transfer agent, DST Systems, Inc., whereby interest earned on
uninvested cash balances is used to offset a portion of the transfer
agent expense. The transfer agent expenses shown in the Statement of
Operations are in total and do not reflect the expense reductions, if
any, which are shown separately.
The Fund imposes a 2% redemption/exchange fee on total redemption
proceeds (after applicable deferred sales charges) of any shareholder
redeeming shares (including redemption by exchange) of the Fund within
10 calendar days of their purchase. The Fund charges the
redemption/exchange fee to discourage market timing by those
shareholders initiating redemptions or exchanges to take advantage of
short-term market movements. The redemption fee will be imposed to the
extent that the number of Fund shares redeemed exceeds the number of
Fund shares that have been held for more than 10 calendar days. In
determining how long shares of the Fund have been held, shares held by
the investor for the longest period of time will be sold first. The
Fund will retain the fee for the benefit of the remaining shareholders.
INVESTMENT ADVISORY FEES, ADMINISTRATIVE FEES AND OTHER TRANSACTIONS
WITH AFFILIATES
The Fund and Old Mutual Capital, Inc. (the "Adviser"), an indirect,
wholly owned subsidiary of Old Mutual plc, are parties to an Investment
Advisory Agreement (the "Advisory Agreement"). Under the terms of the
Advisory Agreement, the Adviser is paid a monthly fee that is
calculated daily and paid monthly, at an annual rate based on the
average daily net assets of the Fund.
For its services to the Fund, the Adviser will receive, on an annual
basis, an amount equal to 0.90% of the Fund's average daily net assets.
In the interest of limiting expenses of the Fund, the Adviser has
entered into separate expense limitation agreements ("Expense
Limitation Agreements") pursuant to which the Adviser has agreed, in
writing, to waive or limit its fees and to assume other expenses of the
Fund to the extent necessary to limit the total annual expenses to a
specified percentage of the Fund' average daily net assets through
September 7, 2006.
The expense limitations are as follows:
------------------------------ --------------------- --------------------- ------------------------
INSTITUTIONAL CLASS CLASS A CLASS C
------------------------------ --------------------- --------------------- ------------------------
Old Mutual Copper Rock 1.10% 1.55% 2.30%
Emerging Growth Fund
------------------------------ --------------------- --------------------- ------------------------
Reimbursement by the Fund of the advisory fees waived and other
expenses paid by the Adviser pursuant to the Expense Limitation
Agreements may be made at a later date when the Fund have reached a
sufficient asset size to permit reimbursement to be made without
causing the total annual expense rate of each Fund to exceed the
expense limitation. Consequently, no reimbursement by a Fund will be
made unless: (i) the Fund's assets exceed $75 million; (ii) the Fund's
total annual expense ratio is less than the expense limitation
(excluding certain other expenses such as brokerage commissions and
extraordinary expenses); and (iii) the payment of such reimbursement
was approved by the Board of Trustees. Moreover, in accordance with the
terms of agreements with the Adviser and the Administrator, whereby, to
the extent that the Adviser defers advisory fees or absorbs operating
expenses of a Fund, the Adviser may seek payment of such deferred fees
or reimbursement of such absorbed expenses within two fiscal years
after the fiscal year in which fees were deferred or expenses were
absorbed, the actual expenses charged to the Fund may exceed these
limits.
The Trust, on behalf of the Fund, and the Adviser have entered into a
sub-advisory agreement ("the Copper Rock Sub-Advisory Agreement") with
Copper Rock Capital Partners LLC ("Copper Rock"). For the services
provided and expenses incurred pursuant to the Copper Rock Sub-Advisory
Agreement for the Fund, Copper Rock is entitled to receive from the
Adviser a sub-advisory fee with respect to the average daily net assets
of such portion of the Fund managed by Copper Rock, which is computed
and paid monthly at an annual rate of 0.65% of the average daily net
assets so managed.
The Sub-Advisory Agreement obligates the Sub-Adviser to: (i) manage the
investment operations of the assets managed by the Sub-Adviser and the
composition of the investment portfolio comprising such assets,
including the purchase, retention and disposition thereof in accordance
with the Fund's investment objective, policies and limitations; (ii)
provide supervision of the assets managed by the Sub-Adviser and to
determine from time to time what investment and securities will be
purchased, retained or sold on behalf of the Fund and what portion of
the assets managed by the Sub-Adviser will be invested or held
uninvested in cash; and (iii) determine the securities to be purchased
or sold on behalf of the Fund in connection with such assets and to
place orders with or through such persons, brokers or dealers to carry
out the policy with respect to brokerage set forth in the Prospectus or
as the Board of Trustees or the Adviser may direct from time to time,
in conformity with federal securities laws.
The Trust and Old Mutual Fund Services (the "Administrator") entered
into the Administrative Services Agreement (the "Administrative
Agreement"), pursuant to which the Administrator oversees the
administration of the Trust's and each Fund's business and affairs,
including regulatory reporting and all necessary office space,
equipment, personnel and facilities, as well as services performed by
various third parties. Under the Administrative Agreement, the
Administrator is entitled to a fee from the Trust, which is calculated
daily and paid monthly at an annual rate of 0.123% of the average daily
net assets of each series portfolio of the Trust, including the Fund.
The Administrative Agreement provides that the Administrator will not
be liable for any error of judgment or mistake of law or for any loss
suffered by the Trust in connection with the matters to which the
Administrative Agreement relates, except a loss resulting from willful
misfeasance, bad faith or gross negligence on the part of the
Administrator in the performance of its duties. The Administrative
Agreement will continue in effect unless terminated by either party
upon not less than 90 days' prior written notice to the other party.
The Administrator and SEI Investments Global Fund Services (the
"Sub-Administrator") entered into a Sub-Administrative Services
Agreement (the "Sub-Administrative Agreement"), pursuant to which the
Sub-Administrator assists the Administrator in connection with the
administration of the business and affairs of the Trust. SEI
Investments Management Corporation ("SEI Investments"), which is a
wholly-owned subsidiary of SEI Investments Company, owns all beneficial
interest in the Sub-Administrator. Under the Sub-Administrative
Agreement, the Administrator pays the Sub-Administrator fees at an
annual rate calculated as follows: the greater sum (higher value) which
results from making the following calculations (A) a fee based on the
average daily net assets of the Trust and the PBHG Fund and the PBHG
Insurance Series Fund of: (i) 0.0165% of the first $10 billion, plus
(ii) 0.0125% of the next $10 billion, plus (iii) 0.010% of the excess
over $20 billion and (B) a fee based on the aggregate number of Fund of
the Trust, PBHG Fund and PBHG Insurance Series Fund calculated at the
sum of between $50,000 and $60,000 per Fund, depending on the total
number of Fund. The Agreement provides that the Sub-Administrator will
not be liable for any error of judgment or mistake of law or for any
loss suffered by the Trust in connection with the matters to which the
Agreement relates, except a loss resulting from willful misfeasance,
bad faith or negligence on the part of the Sub-Administrator in the
performance of its duties. The Agreement will continue in effect until
August 31, 2005, subject to certain termination provisions. After this
initial term, the Agreement will renew each year unless terminated by
either party upon not less than 90 days' prior written notice to the
other party.
Old Mutual Investment Partners (the "Distributor"), an indirect, wholly
owned subsidiary of Old Mutual (US) Holdings Inc. ("OMUSH"), and the
Trust are parties to a distribution agreement (the "Distribution
Agreement"), pursuant to which the Distributor serves as principal
underwriter for the Trust's shares. The Distributor receives no
compensation for serving in such capacity, except as provided in
separate Distribution Plans and Service Plans.
The Distribution Agreement is renewable annually. The Distribution
Agreement may be terminated by the Distributor, by a majority vote of
the Trustees who are not "interested persons" (as defined in the 1940
Act) and have no financial interest in the Distribution Agreement or by
a majority vote of the outstanding securities of the Trust upon not
more than 60 days' written notice by either party or upon assignment by
the Distributor.
The Trust has adopted a Distribution Plan for each of Class A and Class
C shares pursuant to Rule 12b-1 under the 1940 Act to enable the Class
A and Class C shares of a Fund to directly and indirectly bear certain
expenses relating to the distribution of such shares. The Trust has
also adopted a Service Plan to enable the Class A and Class C shares of
a Fund to directly and indirectly bear certain expenses relating to the
shareholder servicing and/or personal account maintenance of the
holders of such shares. Each of the Distribution Plans and Service Plan
are compensation plans, which means that they compensate the
Distributor or third-party broker-dealer or financial intermediary
regardless of the expenses actually incurred by such persons.
Pursuant to the Distribution Plans for Class A and Class C shares, the
Trust will pay to the Distributor a monthly fee at an annual aggregate
rate not to exceed (i) 0.25% of the average net asset value of the
Class A shares of the Fund and (ii) 0.75% of the average net asset
value of the Class C shares of the Fund, as determined at the close of
each business day during the month, which is to compensate the
Distributor for services provided and expenses incurred by it in
connection with the offering and sale of Class A or Class C shares,
which may include, without limitation, the payment by the Distributor
to investment dealers of commissions on the sale of Class A or Class C
shares, as set forth in the then current prospectus or this statement
of additional information with respect to Class A and Class C shares
and interest and other financing costs.
The amount of such payments shall be determined by the Trust's
disinterested Trustees from time to time. Currently, Class A shares are
not authorized to pay distributor fees and Class C shares are
authorized to pay the maximum amount of distributor fees.
Pursuant to the Service Plan for Class A and Class C shares, the Trust
will pay to the Distributor or other third-party financial
intermediaries a fee at an annual aggregate rate not to exceed 0.25% of
the average net asset value of Class A and Class C shares, which is for
maintaining or improving services provided to shareholders by the
Distributor and investment dealers, financial institutions and 401(k)
plan service providers. The amount of such payments shall be determined
by the Trust's disinterested Trustees from time to time.
Currently, both Class A and Class C shares are authorized to pay the
maximum amount of service fees. The Distributor will prepare and
deliver written reports to the Board of Trustees of the Trust on a
regular basis (at least quarterly) setting forth the payments made
pursuant to the Distribution Plans and the Service Plan, and the
purposes for which such expenditures were made, as well as any
supplemental reports as the Board of Trustees may from time to time
reasonably request. Except to the extent that the Administrator,
Sub-Administrator or Adviser may benefit through increased fees from an
increase in the net assets of the Trust which may have resulted in part
from the expenditures, no interested person of the Trust nor any
Trustee of the Trust who is not an "interested person" (as defined in
the 1940 Act) of the Trust had a direct or indirect financial interest
in the operation of the Distribution or Service Plans or any related
agreement.
DST Systems, Inc. serves as the transfer agent and dividend disbursing
agent of the Fund. From time to time, the Fund may pay amounts to third
parties that provide sub-transfer agency and other administrative
services relating to the Fund to persons who beneficially own interests
in the Fund.
The Fund has entered into a shareholder servicing agreement with Old
Mutual Fund Services to provide shareholder support and other
shareholder account-related services. Old Mutual Fund Services has, in
turn, contracted with Old Mutual Shareholder Services, Inc. (formerly
known as PBHG Shareholder Services, Inc.), ("OMSS"), its wholly owned
subsidiary, to assist in the provision of those services. OMSS received
no fees directly from the Fund. The shareholder service fees are
reviewed periodically and approved annually by the Board of Trustees.
3. INTERFUND LENDING
Pursuant to resolutions adopted by the Boards of Trustees of each of
Old Mutual Advisor Fund, PBHG Fund and PBHG Insurance Series Fund
(together, the "Trusts"), on behalf of each series portfolio of the
Trusts (the "Fund"), the Fund may lend an amount up to its
prospectus-defined limitations to other Funds. All such lending shall
be conducted pursuant to the exemptive order granted by the Securities
and Exchange Commission on August 12, 2003 to the Trusts and Liberty
Ridge Capital, Inc.
The interest rate charged on the loan is the average of the overnight
repurchase agreement rate (highest rate available to the Fund from
investments in overnight repurchase agreements) and the bank loan rate
(Federal Fund Rate plus 50 basis points). The Fund may not borrow more
than 10% of its assets.
4. FOREIGN HOLDINGS RISK
The Fund may invest in foreign securities. Investing in the securities
of foreign issuers involves special risks and considerations not
typically associated with investing in U.S. companies. These risks and
considerations include differences in accounting, auditing and
financial reporting standards, generally higher commission rates on
foreign portfolio transactions, the possibility of expropriation or
confiscatory taxation, adverse changes in investment or exchange
control regulations, political instability which could affect U.S.
investment in foreign countries and potential restrictions on the flow
of international capital and currencies. Foreign issuers may also be
subject to less government regulation than U.S. companies. Moreover,
the dividends and interest payable on foreign securities may be subject
to foreign withholding taxes, thus reducing the net amount of income
available for distribution to the Fund's shareholders. Further, foreign
securities often trade with less frequency and volume than domestic
securities and, therefore, may exhibit greater price volatility.
Changes in foreign exchange rates will affect, favorably or
unfavorably, the value of those securities which are denominated or
quoted in currencies other than the U.S. dollar.
5. FEDERAL TAX INFORMATION
The Fund has qualified and intends to continue to qualify as a
regulated investment company for Federal income tax purposes and to
distribute substantially all of its taxable income and net capital
gains. Accordingly, no provision has been made for Federal income
taxes. Dividends from net investment income and distributions from net
realized capital gains are determined in accordance with U.S. Federal
income tax regulations, which may differ from those amounts determined
under accounting principles generally accepted in the United States of
America. These book/tax differences are either temporary or permanent
in nature. To the extent these differences are permanent, they are
charged or credited to paid-in-capital or accumulated net realized
gain, as appropriate, in the period that the differences arise.
ITEM 2. CODE OF ETHICS.
(a) As of the end of the period covered by this report, Old Mutual Advisor
Funds ("Registrant") has adopted a code of ethics that applies to the
Registrant's principal executive officer, principal financial officer,
principal accounting officer or controller, or persons performing
similar functions ("Senior Officer Code of Ethics").
(c) During the period covered by this report, no amendments have been made
to the Senior Officer Code of Ethics.
(d) During the period covered by this report, the Registrant has not
granted a waiver, including an implicit waiver, from a provision of the
Senior Officer Code of Ethics to the Registrant's principal executive
officer, principal financial officer, or principal accounting officer
that relates to one or more of the items set forth in paragraph (b) of
Item 2 of Form N-CSR.
(f)(2) A copy of the Senior Officer Code of Ethics is available on the
internet at www.oldmutualcapital.com.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The Registrant's Board of Trustees has determined that the Registrant has
at least one audit committee financial expert serving on its audit committee.
(a)(2) The audit committee financial expert is John R. Bartholdson who is an
"independent" member of the audit committee as that term is defined in Form
N-CSR Item 3(a)(2).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees. The aggregate fees billed to Registrant by
PricewaterhouseCoopers ("PwC"), its principal accountant, for professional
services rendered for the audit of the Registrant's financial statements or
services that are normally provided by the accountant in connection with
statutory and regulatory filings or engagements for the fiscal year ended July
31, 2005 were $75,000. PwC also billed to Registrant fees of $11,000 for the
Registrant's seed audit related to its commencement of operations.
(b) Audit-Related Fees. The Registrant did not incur any audit-related fees for
assurance and related services that are reasonably related to the performance of
the audit of the Registrant's financial statements and that are not reported
under paragraph (a) of this Item 4 for the fiscal year ended July 31, 2005 or
for the period of the Registrant's inception in May 2004 through the start of
its 2005 fiscal year.
(c) Tax Fees. The Registrant did not incur any tax-related fees for the fiscal
year ended July 31, 2005 or for the period of the Registrant's inception in May
2004 through the start of its 2005 fiscal year.
(d) All Other Fees. The Registrant did not incur any other fees from PwC for
products and services provided by PwC, other than the services reported in
paragraphs (a), (b), and (c) of this Item 4.
(e)(1) The Registrant's Board generally must pre-approve all audit and
significant permitted non-audit engagement of the Registrant's principal
accountant prior to the commencement of any such engagement. The Board has
approved a de minimus exception for non-audit services costing $10,000 or less,
subject to ratification of such non-audit services at the next meeting of the
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule included under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND
AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
The Registrant has a Governance and Nominating Committee (the "Committee"),
which is responsible for selecting and nominating persons for election or
appointment by the Registrant's Board of Trustees. The Committee has adopted a
Governance and Nominating Committee Charter (the "Charter"). Pursuant to the
Charter, the Committee will consider recommendations for nominees from
shareholders (other than shareholder recommendations of himself or herself)
submitted to the Secretary of the Registrant, 4643 S. Ulster Street, Suite 600,
Denver, Colorado 80237. A nomination submission must include information (i) the
name, address and telephone number of, and the number of Trust shares owned by,
the person or entity or group of persons or entities on whose behalf the
recommendation is being made, and the related account name, number and broker or
account provider name and (ii) if any such persons were not record owners of the
Trust at the time the recommendation was submitted, verification acceptable in
form and substance to the Trust of such person's ownership of the Trust at the
time the recommendation was made.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the Registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
Registrant's disclosure controls and procedures are reasonably designed, and are
operating effectively to ensure, that information required to be disclosed by
the Registrant on Form N-CSR is recorded, processed, summarized and reported
within the required time periods and that information required to be disclosed
by the Registrant in the reports that it files or submits on Form N-CSR is
accumulated and communicated to Registrant's management, including its principal
executive and principal financial officers, as appropriate to allow timely
decisions regarding required disclosure.
(b) There were no significant changes in the Registrant's internal control over
financial reporting that occurred during the Registrant's last fiscal half-year
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.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)) are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
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.
Old Mutual Advisor Funds
By: /s/ David J. Bullock
-----------------------------
David J. Bullock, President and
Principal Executive Officer
Dated: October 6, 2005
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: /s/ David J. Bullock
-----------------------------
David J. Bullock, President and
Principal Executive Officer
Dated: October 5, 2005
By: /s/ Mark E. Black
-------------------------
Mark E. Black, Treasurer and
Principal Financial Officer
Dated: October 6, 2005