United States
Securities and Exchange Commission
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-8104
---------------------------------------------
Touchstone Funds Group Trust
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(Exact name of registrant as specified in charter)
303 Broadway, Suite 1100, Cincinnati, Ohio 45202
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(Address of principal executive offices) (Zip code)
Jill T. McGruder, 303 Broadway, Suite 1100, Cincinnati, Ohio 45202
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(Name and address of agent for service)
Registrant's telephone number, including area code: (513) 878-4066
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Date of fiscal year end: 09/30
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Date of reporting period: 3/31/10
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Form N-CSR is to be used by management investment companies to file
reports with the Commission not later than 10 days after the transmission to
stockholders of any report that is required to be transmitted to stockholders
under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).
The Commission may use the information provided on Form N-CSR in its regulatory,
disclosure review, inspection and policymaking roles.
A registrant is required to disclose the information specified by Form
N-CSR, and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. REPORTS TO STOCKHOLDERS.
Touchstone Funds Group Trust Semiannual Report
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March 31, 2010
(Unaudited)
Semi-Annual Report
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TOUCHSTONE FUNDS GROUP TRUST
Touchstone Capital Appreciation Fund
Touchstone Core Plus Fixed Income Fund
Touchstone Emerging Markets Equity Fund
Touchstone Focused Equity Fund
Touchstone Global Equity Fund
Touchstone Global Real Estate Fund
Touchstone Healthcare and Biotechnology Fund
Touchstone Intermediate Fixed Income Fund
Touchstone International Fixed Income
Touchstone International Growth Fund
Touchstone Large Cap Relative Value Fund
Touchstone Market Neutral Equity Fund
(formerly Touchstone Long/Short Equity Fund)
Touchstone Mid Cap Fund
Touchstone Mid Cap Value Fund
Touchstone Premium Yield Equity Fund
Touchstone Sands Capital Select Growth Fund
Touchstone Short Duration Fixed Income Fund
Touchstone Small Cap Core Fund
Touchstone Small Cap Value Opportunities Fund
Touchstone Ultra Short Duration Fixed Income Fund
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[LOGO] TOUCHSTONE INVESTMENTS(R)
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Table of Contents
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Page
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Tabular Presentation of Portfolios of Investments (Unaudited) 3-7
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Statements of Assets and Liabilities 8-17
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Statements of Operations 18-22
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Statements of Changes in Net Assets 23-31
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Financial Highlights 32-70
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Notes to Financial Statements 71-96
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Portfolios of Investments:
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Capital Appreciation Fund 97
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Core Plus Fixed Income Fund 98-103
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Emerging Markets Equity Fund 104-105
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Focused Equity Fund 106
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Global Equity Fund 107-108
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Global Real Estate Fund 109-110
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Healthcare and Biotechnology Fund 111
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Intermediate Fixed Income Fund 112-115
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International Fixed Income 116-117
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International Growth Fund 118-119
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Large Cap Relative Value Fund 120
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Market Neutral Equity Fund 121-125
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Mid Cap Fund 126-127
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Mid Cap Value Fund 128-129
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Premium Yield Equity Fund 130
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Sands Capital Select Growth Fund 131
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Short Duration Fixed Income Fund 132-136
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Small Cap Core Fund 137
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Small Cap Value Opportunities Fund 138-139
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Ultra Short Duration Fixed Income Fund 140-143
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Other Items (Unaudited) 144-160
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Privacy Protection Policy 163
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2
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Tabular Presentation of Portfolios of Investments (Unaudited)
March 31, 2010
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The illustrations below provide each Fund's sector allocation. We hope it will
be useful to shareholders as it summarizes key information about each Fund's
investments.
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CAPITAL APPRECIATION FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Information Technology 21.0
Consumer Staples 19.7
Health Care 19.2
Industrials 10.4
Consumer Discretionary 8.8
Financials 8.1
Energy 5.1
Materials 1.9
Investment Funds 8.0
Other Assets/Liabilities (Net) (2.2)
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TOTAL 100.0
-----
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CORE PLUS FIXED INCOME FUND
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CREDIT QUALITY (% OF INVESTMENT SECURITIES)
U.S. Treasury 17.8
U.S. Agency* 20.4
AAA/Aaa 10.3
AA/Aa 3.8
A/A 13.7
BBB/Baa 17.7
BB/Ba 9.5
B/B 6.6
CCC 0.2
-----
TOTAL 100.0
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* Includes mortgage debt issues (excluding CMBS)
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EMERGING MARKETS EQUITY FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Financials 22.1
Materials 17.3
Consumer Discretionary 14.8
Energy 9.9
Consumer Staples 8.3
Information Technology 8.0
Telecommunication Services 4.3
Industrials 4.0
Utilities 2.3
Health Care 1.3
Investment Funds 5.2
Other Assets/Liabilities (Net) 2.2
-----
TOTAL 100.0
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FOCUSED EQUITY FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Information Technology 19.4
Consumer Discretionary 17.6
Financials 17.3
Industrials 15.6
Consumer Staples 11.8
Health Care 8.8
Energy 4.0
Telecommunication Services 2.6
Investment Funds 3.3
Other Assets/Liabilities (Net) (0.4)
-----
TOTAL 100.0
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3
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Tabular Presentation of Portfolios of Investments (Continued)
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GLOBAL EQUITY FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Industrials 22.2
Materials 16.9
Health Care 13.1
Consumer Staples 12.4
Telecommunication Services 10.0
Consumer Discretionary 9.3
Utilities 3.4
Information Technology 3.4
Energy 0.8
Investment Funds 3.2
Other Assets/Liabilities (Net) 5.3
-----
TOTAL 100.0
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GLOBAL REAL ESTATE FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Financials 97.1
Investment Funds 4.1
Other Assets/Liabilities (Net) (1.2)
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TOTAL 100.0
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HEALTH CARE AND BIOTECHNOLOGY FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Health Care 99.0
Investment Funds 13.5
Other Assets/Liabilities (Net) (12.5)
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TOTAL 100.0
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INTERMEDIATE FIXED INCOME FUND
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CREDIT QUALITY (% OF INVESTMENT SECURITIES)
U.S. Treasury 30.7
U.S. Agency 9.2
AAA/Aaa 5.1
AA/Aa 5.8
A/A 24.5
BBB/Baa 24.7
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TOTAL 100.0
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INTERNATIONAL FIXED INCOME FUND
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CREDIT QUALITY (% OF INVESTMENT SECURITIES)
AAA/Aaa 57.0
AA/Aa 18.3
A/A 0.0
BBB/Baa 2.7
Not Rated 3.2
Foreign Exchange and Money Market 18.8
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TOTAL 100.0
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INTERNATIONAL GROWTH FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Information Technology 22.5
Health Care 16.0
Financials 11.4
Materials 11.3
Industrials 9.6
Energy 9.5
Consumer Staples 8.6
Consumer Discretionary 6.3
Telecommunication Services 2.7
Utilities 1.2
Investment Funds 28.8
Other Assets/Liabilities (Net) (27.9)
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TOTAL 100.0
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4
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Tabular Presentation of Portfolios of Investments (Continued)
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LARGE CAP RELATIVE VALUE FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Financials 19.1
Information Technology 14.9
Energy 14.9
Consumer Discretionary 14.5
Industrials 12.0
Health Care 10.4
Utilities 4.4
Materials 4.3
Telecommunication Services 2.0
Consumer Staples 1.6
Investment Funds 1.7
Other Assets/Liabilities (Net) 0.2
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TOTAL 100.0
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MARKET NEUTRAL EQUITY FUND
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SECTOR ALLOCATION (% OF INVESTMENT SECURITIES)
LONG POSITIONS
- --------------
Consumer Discretionary 12.0
Consumer Staples 2.8
Energy 7.1
Health Care 10.9
Financials 22.8
Information Technology 13.8
Industrials 14.6
Materials 3.6
Utilities 3.7
Investment Funds 4.7
Cash Collateral for Securities
Sold Short 95.6
Other Assets/Liabilities (1.4)
-----
190.2
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SHORT POSITIONS
- ---------------
Consumer Discretionary (9.5)
Consumer Staples (3.0)
Energy (6.8)
Health Care (10.7)
Financials (22.7)
Information Technology (12.7)
Industrials (15.6)
Materials (5.1)
Utilities (4.1)
-----
(90.2)
-----
100.0
-----
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5
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Tabular Presentation of Portfolios of Investments (Continued)
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MID CAP FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Financials 17.4
Information Technology 14.9
Consumer Discretionary 14.1
Health Care 10.7
Materials 9.1
Industrials 9.1
Energy 8.0
Consumer Staples 6.2
Utilities 5.3
Telecommunication Services 3.6
Investment Funds 25.6
Other Assets/Liabilities (Net) (24.0)
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TOTAL 100.0
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MID CAP VALUE FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Financials 24.2
Consumer Discretionary 12.8
Industrials 11.5
Utilities 10.4
Energy 9.5
Information Technology 8.8
Consumer Staples 7.9
Materials 7.9
Health Care 5.0
Investment Funds 1.2
Other Assets/Liabilities (Net) 0.8
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TOTAL 100.0
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PREMIUM YIELD EQUITY FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Energy 20.1
Financials 16.2
Health Care 16.0
Utilities 15.4
Information Technology 9.1
Telecommunication Services 8.5
Consumer Discretionary 6.4
Consumer Staples 3.0
Industrials 1.9
Materials 1.7
Investment Funds 3.5
Other Assets/Liabilities (Net) (1.8)
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TOTAL 100.0
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SANDS CAPITAL SELECT GROWTH FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Information Technology 32.7
Health Care 19.5
Consumer Discretionary 17.2
Energy 13.0
Financials 8.9
Materials 3.2
Industrials 2.7
Investment Funds 3.8
Other Assets/Liabilities (Net) (1.0)
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TOTAL 100.0
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6
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Tabular Presentation of Portfolios of Investments (Continued)
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SHORT DURATION FIXED INCOME FUND
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CREDIT QUALITY (% OF INVESTMENT SECURITIES)
U.S. Treasury 6.2
U.S. Agency 29.6
AAA/Aaa 34.1
AA/Aa 4.1
A/A 14.6
BBB/Baa 10.6
Not Rated 0.8
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TOTAL 100.0
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SMALL CAP CORE FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Industrials 20.6
Financials 20.5
Consumer Discretionary 16.2
Consumer Staples 11.1
Materials 9.6
Energy 8.0
Health Care 5.0
Information Technology 4.3
Investment Funds 22.7
Other Assets/Liabilities (Net) (18.0)
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TOTAL 100.0
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SMALL CAP VALUE OPPORTUNITIES FUND
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SECTOR ALLOCATION (% OF NET ASSETS)
Financials 33.2
Consumer Discretionary 13.4
Information Technology 12.7
Materials 10.7
Industrials 9.5
Health Care 5.0
Energy 4.6
Utilities 4.6
Consumer Staples 3.5
Telecommunication Services 0.5
Investment Funds 21.8
Other Assets/Liabilities (Net) (19.5)
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TOTAL 100.0
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ULTRA SHORT DURATION FIXED INCOME FUND
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CREDIT QUALITY (% OF INVESTMENT SECURITIES)
U.S. Agency 79.7
AAA/Aaa 1.2
AA/Aa 0.6
A/A 3.2
BBB/Baa 3.5
Not Rated 11.8
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TOTAL 100.0
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7
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Statements of Assets and Liabilities
March 31, 2010 (Unaudited)
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EMERGING
CAPITAL CORE PLUS MARKETS FOCUSED
APPRECIATION FIXED INCOME EQUITY EQUITY
FUND FUND FUND FUND
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ASSETS
Investment securities:
At cost $ 5,080,053 $ 15,317,771 $ 15,462,097 $ 2,110,238
====================================================================================================================================
Affiliated securities, at market value $ 434,242 $ 1,489,027 $ 895,928 $ 74,833
Non-affiliated securities, at market value 5,117,340 13,883,781 15,833,285 2,180,677
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At market value $ 5,551,582 $ 15,372,808 $ 16,729,213 $ 2,255,510
Foreign currency, at cost of $3,584 and $16,574 for Core Plus Fixed
Income Fund and Emerging Markets Equity Fund, respectively. -- 3,514 16,639 --
Unrealized appreciation on forward foreign currency contracts -- 8,410 -- --
Dividends and interest receivable 3,864 148,852 16,886 2,372
Receivable for capital shares sold 19,239 33,161 311,770 --
Receivable for securities sold -- 864,547 39,829 --
Receivable from Advisor -- 1,324 -- 11,223
Receivable from other affiliates 2,995 2,520 6,779 --
Tax reclaim receivable -- 458 30 --
Other assets 2,359 6,846 12,214 --
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TOTAL ASSETS 5,580,039 16,442,440 17,133,360 2,269,105
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LIABILITIES
Dividends and interest payable -- 29,661 -- --
Unrealized depreciation on forward foreign currency contracts -- 14,562 --
Payable for capital shares redeemed -- 3,736 1,680 --
Payable for securities purchased 132,538 2,188,764 -- 9,319
Payable to Advisor 2,103 -- 24,376 --
Payable to other affiliates -- -- -- 1,192
Payable to Trustees 3,491 3,491 3,491 2,256
Other accrued expenses and liabilities 8,946 19,345 -- 10,683
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TOTAL LIABILITIES 147,078 2,259,559 29,547 23,450
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NET ASSETS $ 5,432,961 $ 14,182,881 $ 17,103,813 $ 2,245,655
====================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $ 4,905,845 $ 14,165,799 $ 15,832,083 $ 2,091,613
Accumulated net investment income (loss) 3,787 (4,548) (18,562) 4,019
Accumulated net realized gains (losses) on investments
and foreign currency transactions 51,800 (27,245) 21,438 4,751
Net unrealized appreciation on investments 471,529 55,037 1,267,116 145,272
Net unrealized appreciation (depreciation) on foreign currency and
translation of other assets and liabilities denominated in foreign
currency -- (6,162) 1,738 --
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NET ASSETS $ 5,432,961 $ 14,182,881 $ 17,103,813 $ 2,245,655
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PRICING OF CLASS A SHARES
Net assets attributable to Class A shares $ 1,954,722 $ 2,486,108 $ 2,805,639 $ 203,910
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Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 173,067 247,837 243,145 18,651
====================================================================================================================================
Net asset value and redemption price per share $ 11.29 $ 10.03 $ 11.54 $ 10.93
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Maximum offering price per share $ 11.98 $ 10.64 $ 12.24 $ 11.60
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8
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Statements of Assets and Liabilities (Continued)
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EMERGING
CAPITAL CORE PLUS MARKETS FOCUSED
APPRECIATION FIXED INCOME EQUITY EQUITY
FUND FUND FUND FUND
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PRICING OF CLASS C SHARES
Net assets attributable to Class C shares $ 282,388 $ 1,310,873 $ 2,094,711 $ 111,904
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 25,093 130,715 182,411 10,249
====================================================================================================================================
Net asset value, offering price and redemption price per share* $ 11.25 $ 10.03 $ 11.48 $ 10.92
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PRICING OF CLASS Y SHARES
Net assets attributable to Class Y shares $ 140,236 $ 567,810 $ 1,076,321 $ 109,369
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 12,410 56,603 93,198 10,000
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 11.30 $ 10.03 $ 11.55 $ 10.94
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PRICING OF INSTITUTIONAL CLASS SHARES
Net assets attributable to Institutional Class shares $ 3,055,615 $ 9,818,090 $ 11,127,142 $ 1,820,472
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 270,708 978,521 962,329 166,432
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 11.29 $ 10.03 $ 11.56 $ 10.94
====================================================================================================================================
* Redemption price per share varies by length of time shares are held.
See accompanying notes to financial statements.
9
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Statements of Assets and Liabilities (Continued)
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GLOBAL GLOBAL HEALTHCARE AND INTERMEDIATE
EQUITY REAL ESTATE BIOTECHNOLOGY FIXED INCOME
FUND FUND FUND FUND
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ASSETS
Investment securities:
At cost $ 3,271,334 $ 4,063,395 $ 30,466,460 $ 105,844,486
====================================================================================================================================
Affiliated securities, at market value $ 113,361 $ 174,435 $ 20,985 $ 2,238,710
Non-affiliated securities, at market value 3,203,997 4,079,505 36,429,708 106,013,819
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At market value - including $4,206,975
of securities loaned for the Healthcare and Biotechnology Fund $ 3,317,358 $ 4,253,940 $ 36,450,693 $ 108,252,529
Dividends and interest receivable 6,033 12,023 46,693 1,060,930
Receivable for capital shares sold 118,400 10,098 3,090 21,528
Receivable for securities sold 78,875 72,286 408,669 --
Receivable for securities lending income -- -- 496 --
Receivable from Advisor 3,531 425 -- --
Recievable from other affiliates 6,244 5,648 -- --
Tax reclaim receivable 567 44 2,000 --
Other assets 765 1,182 13,785 --
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TOTAL ASSETS 3,531,773 4,355,646 36,925,426 109,334,987
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LIABILITIES
Bank overdraft 10,686 272 -- --
Dividends and interest payable -- -- -- 267,950
Payable upon return of securities loaned -- -- 4,347,725 --
Payable for capital shares redeemed -- 307 80,467 41,127
Payable for securities purchased -- 143,043 -- --
Payable to Advisor -- -- 19,194 16,382
Payable to other affiliates -- -- 36,678 18,707
Payable to Trustees 3,491 3,491 3,615 4,251
Other accrued expenses and liabilities 14,219 3,419 47,909 24,887
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TOTAL LIABILITIES 28,396 150,532 4,535,588 373,304
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NET ASSETS $ 3,503,377 $ 4,205,114 $ 32,389,838 $ 108,961,683
====================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $ 3,406,940 $ 3,972,994 $ 38,683,750 $ 108,284,075
Accumulated net investment income (loss) 1,402 (615) (118,386) (8,902)
Accumulated net realized gains (losses) on investments
and foreign currency transactions 48,932 42,232 (12,159,759) (1,721,533)
Net unrealized appreciation on investments 46,024 190,545 5,984,233 2,408,043
Net unrealized appreciation (depreciation) on foreign currency and
translation of other assets and liabilities denominated in foreign
currency 79 (42) -- --
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NET ASSETS $ 3,503,377 $ 4,205,114 $ 32,389,838 $ 108,961,683
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PRICING OF CLASS A SHARES
Net assets attributable to Class A shares $ 499,710 $ 1,025,766 $ 29,273,000 $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 48,536 95,696 2,084,559 --
====================================================================================================================================
Net asset value and redemption price per share $ 10.30 $ 10.72 $ 14.04 $ --
====================================================================================================================================
Maximum offering price per share $ 10.93 $ 11.37 $ 14.90 $ --
====================================================================================================================================
10
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Statements of Assets and Liabilities (Continued)
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GLOBAL GLOBAL HEALTHCARE AND INTERMEDIATE
EQUITY REAL ESTATE BIOTECHNOLOGY FIXED INCOME
FUND FUND FUND FUND
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PRICING OF CLASS C SHARES
Net assets attributable to Class C shares $ 102,582 $ 112,684 $ 3,116,838 $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 10,000 10,531 227,699 --
====================================================================================================================================
Net asset value, offering price and redemption price per share* $ 10.26 $ 10.70 $ 13.69 $ --
====================================================================================================================================
PRICING OF CLASS Y SHARES
Net assets attributable to Class Y shares $ 115,582 $ 115,532 $ -- $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 11,212 10,767 -- --
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 10.31 $ 10.73 $ -- $ --
====================================================================================================================================
PRICING OF INSTITUTIONAL CLASS SHARES
Net assets attributable to Institutional Class shares $ 2,785,503 $ 2,951,132 $ -- $ 108,961,683
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 270,064 274,928 -- 12,366,711
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 10.31 $ 10.73 $ -- $ 8.81
====================================================================================================================================
* Redemption price per share varies by length of time shares are held.
See accompanying notes to financial statements.
11
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Statements of Assets and Liabilities (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL INTERNATIONAL LARGE CAP MARKET
FIXED INCOME GROWTH RELATIVE VALUE NEUTRAL EQUITY
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investment securities:
At cost $ 6,986,703 $ 40,546,842 $ 3,418,790 $ 8,800,534
====================================================================================================================================
Affiliated securities, at market value $ 597,817 $ 285,531 $ 66,759 $ 473,632
Non-affiliated securities, at market value 6,064,352 45,679,861 3,817,678 9,199,167
- ------------------------------------------------------------------------------------------------------------------------------------
At market value - including $9,820,531
of securities loaned for the International Growth Fund $ 6,662,169 $ 45,965,392 $ 3,884,437 $ 9,672,799
Foreign currency, at cost $716,236 705,329 -- -- --
Cash collateral held for securities sold short -- -- -- 9,636,995
Unrealized appreciation on forward foreign currency contracts 102,048 -- -- --
Dividends and interest receivable 98,613 111,734 4,001 2,784
Receivable for capital shares sold 9,222 109,217 16,455 22,337
Receivable for securities sold 138,786 -- -- 136,784
Receivable for securities lending income -- 1,757 -- --
Receivable from other affiliates 5,487 -- 4,234 --
Tax reclaim receivable 1,555 -- -- --
Other assets 1,497 43,300 1,078 6,368
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 7,724,706 46,231,400 3,910,205 19,478,067
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Securities sold short, at value (proceeds $8,258,277 for
the Market Neutral Equity Fund) -- -- -- 9,094,240
Dividends and interest payable 9,821 120,268 6,807 --
Unrealized depreciation on forward foreign currency contracts 1,040 -- -- --
Payable upon return of securities loaned -- 10,052,687 -- --
Payable for capital shares redeemed -- 23,822 29 --
Payable for securities purchased 464,062 -- -- 278,120
Payable to Advisor 1,876 38,661 20 21,894
Payable to other affiliates -- 8,467 -- 4,730
Payable to Trustees 3,491 5,719 3,491 3,491
Other accrued expenses and liabilities 16,620 55,523 8,811 --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 496,910 10,305,147 19,158 9,402,475
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 7,227,796 $ 35,926,253 $ 3,891,047 $ 10,075,592
====================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $ 7,180,427 $ 34,896,256 $ 3,420,080 $ 10,421,723
Accumulated net investment income (loss) 2 (783) -- (57,484)
Accumulated net realized gains (losses) on investments
and foreign currency transactions 286,061 (4,387,770) 5,320 (324,949)
Net unrealized appreciation (depreciation) on investments (325,885) 5,418,550 465,647 36,302
Net unrealized appreciation on foreign currency and translation
of other assets and liabilities denominated in foreign currency 87,191 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 7,227,796 $ 35,926,253 $ 3,891,047 $ 10,075,592
- ------------------------------------------------------------------------------------------------------------------------------------
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares $ 182,041 $ 35,783,819 $ 422,956 $ 447,522
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 18,083 4,384,824 36,882 46,317
====================================================================================================================================
Net asset value and redemption price per share $ 10.07 $ 8.16 $ 11.47 $ 9.66
====================================================================================================================================
Maximum offering price per share $ 10.68 $ 8.66 $ 12.17 $ 10.25
====================================================================================================================================
12
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL INTERNATIONAL LARGE CAP MARKET
FIXED INCOME GROWTH RELATIVE VALUE NEUTRAL EQUITY
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares $ 143,352 $ 136,291 $ 242,585 $ 143,020
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 14,243 16,664 21,178 14,860
====================================================================================================================================
Net asset value, offering price and redemption price per share* $ 10.06 $ 8.18 $ 11.45 $ 9.62
====================================================================================================================================
PRICING OF CLASS Y SHARES
Net assets attributable to Class Y shares $ 103,958 $ 6,143 $ 115,114 $ 9,485,050
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 10,327 756 10,034 980,498
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 10.07 $ 8.12 $ 11.47 $ 9.67
====================================================================================================================================
PRICING OF INSTITUTIONAL CLASS SHARES
Net assets attributable to Institutional Class shares $ 6,798,445 $ -- $ 3,110,392 $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 675,363 -- 271,107 --
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 10.07 $ -- $ 11.47 $ --
====================================================================================================================================
* Redemption price per share varies by length of time shares are held.
See accompanying notes to financial statements.
13
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (Continued)
- --------------------------------------------------------------------------------
SANDS CAPITAL
MID MID CAP PREMIUM SELECT
CAP VALUE YIELD EQUITY GROWTH
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investment securities:
At cost $ 157,346,701 $ 3,335,902 $ 33,577,365 $ 405,314,029
====================================================================================================================================
Affiliated securities, at market value $ 3,302,762 $ 42,954 $ 1,192,612 $ 14,982,826
Non-affiliated securities, at market value 180,342,488 3,657,397 33,966,613 529,179,974
- ------------------------------------------------------------------------------------------------------------------------------------
At market value - including $33,717,033 and $5,176,572
of securities loaned for the Mid Cap Fund and Sands Capital
Select Growth Fund, respectively. $ 183,645,250 $ 3,700,351 $ 35,159,225 $ 544,162,800
Dividends and interest receivable 203,406 6,146 73,829 185,659
Receivable for capital shares sold 15,156 16,325 134,475 1,698,854
Receivable for securities sold 1,112,010 12,187 -- --
Receivable for securities lending income 940 -- -- 69
Receivable from other affiliates -- 5,381 -- --
Tax reclaim receivable 475 98 521 --
Other assets 7,573 3,687 18,354 49,595
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 184,984,810 3,744,175 35,386,404 546,096,977
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Dividends and interest payable -- -- 71,209 --
Payable upon return of securities loaned 34,657,844 -- -- 5,289,928
Payable for capital shares redeemed 148,548 -- 22,296 901,262
Payable for securities purchased 1,937,484 -- 705,292 --
Payable to Advisor 74,287 1,186 10,555 326,029
Payable to other affiliates 28,410 -- 9,942 178,103
Payable to Trustees 3,590 3,491 3,617 3,617
Other accrued expenses and liabilities 47,840 9,214 30,248 370,835
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 36,898,003 13,891 853,159 7,069,774
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 148,086,807 $ 3,730,284 $ 34,533,245 $ 539,027,203
====================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $ 320,732,546 $ 3,260,438 $ 41,566,723 $ 549,345,242
Accumulated net investment income (loss) (121,836) 2,916 (4,193) (1,423,740)
Accumulated net realized gains (losses) on investments (198,822,452) 102,481 (8,611,145) (147,743,070)
Net unrealized appreciation on investments 26,298,549 364,449 1,581,860 138,848,771
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 148,086,807 $ 3,730,284 $ 34,533,245 $ 539,027,203
- ------------------------------------------------------------------------------------------------------------------------------------
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares $ 517,273 $ 211,862 $ 21,828,158 $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 40,444 18,452 3,367,864 --
====================================================================================================================================
Net asset value and redemption price per share $ 12.79 $ 11.48 $ 6.48 $ --
====================================================================================================================================
Maximum offering price per share $ 13.57 $ 12.18 $ 6.88 $ --
====================================================================================================================================
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares $ 241,338 $ 118,723 $ 5,189,600 $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 18,942 10,360 800,525 --
====================================================================================================================================
Net asset value, offering price and redemption price per share* $ 12.74 $ 11.46 $ 6.48 $ --
====================================================================================================================================
14
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (Continued)
- --------------------------------------------------------------------------------
SANDS CAPITAL
MID MID CAP PREMIUM SELECT
CAP VALUE YIELD EQUITY GROWTH
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRICING OF CLASS Y SHARES
Net assets attributable to Class Y shares $ -- $ 277,000 $ 7,515,487 $ 96,078,920
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) -- 24,104 1,161,262 11,491,129
====================================================================================================================================
Net asset value, offering price and redemption price per share $ -- $ 11.49 $ 6.47 $ 8.36
====================================================================================================================================
PRICING OF CLASS Z SHARES
Net assets attributable to Class Z shares $ 2,065,976 $ -- $ -- $ 442,948,283
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 162,559 -- -- 53,710,756
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 12.71 $ -- $ -- $ 8.25
====================================================================================================================================
PRICING OF INSTITUTIONAL CLASS SHARES
Net assets attributable to Institutional Class shares $ 145,262,220 $ 3,122,699 $ -- $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 11,369,069 271,659 -- --
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 12.78 $ 11.49 $ -- $ --
====================================================================================================================================
* Redemption price per share varies by length of time shares are held.
See accompanying notes to financial statements.
15
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (Continued)
- --------------------------------------------------------------------------------
SMALL CAP ULTRA
SHORT DURATION SMALL VALUE SHORT DURATION
FIXED INCOME CAP CORE OPPORTUNITIES FIXED INCOME
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investment securities:
At cost $ 40,978,335 $ 77,122,404 $ 76,180,706 $ 141,356,132
====================================================================================================================================
Affiliated securities, at market value $ 201,017 $ 15,269,205 $ 1,914,659 $ 3,504,313
Non-affiliated securities, at market value 41,799,042 64,192,371 89,857,468 138,673,144
- ------------------------------------------------------------------------------------------------------------------------------------
At market value - including $14,433,930
of securities loaned for the Small Cap Value Opportunities Fund $ 42,000,059 $ 79,461,576 $ 91,772,127 $ 142,177,457
Dividends and interest receivable 308,195 103,744 67,032 609,894
Receivable for capital shares sold 141,457 833,827 61,651 3,257,792
Receivable for securities sold -- 857,927 480,103 918,288
Receivable for securities lending income -- -- 32,885 --
Receivable from Advisor 26,038 -- -- --
Tax reclaim receivable -- -- -- --
Other assets 15,524 12,756 7,114 23,866
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS 42,491,273 81,269,830 92,420,912 146,987,297
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Dividends and interest payable 143,725 -- -- 271,788
Payable upon return of securities loaned -- -- 14,865,099 --
Payable for capital shares redeemed 70,399 54,340 222,569 119,492
Payable for securities purchased -- 13,808,638 232,135 2,827,418
Payable to Advisor -- 39,331 62,380 6,284
Payable to other affiliates 23,264 1,758 57,056 61,533
Payable to Trustees 3,617 3,491 3,590 3,590
Other accrued expenses and liabilities 80,466 12,702 154,941 140,939
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 321,471 13,920,260 15,597,770 3,431,044
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 42,169,802 $ 67,349,570 $ 76,823,142 $ 143,556,253
====================================================================================================================================
NET ASSETS CONSIST OF:
Paid-in capital $ 46,611,044 $ 64,658,752 $ 114,030,084 $ 156,698,571
Accumulated net investment income (loss) (9,146) 69,965 1,258 (129,496)
Accumulated net realized gains (losses) on investments (5,453,820) 281,681 (52,799,621) (13,834,147)
Net unrealized appreciation on investments 1,021,724 2,339,172 15,591,421 821,325
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 42,169,802 $ 67,349,570 $ 76,823,142 $ 143,556,253
- ------------------------------------------------------------------------------------------------------------------------------------
PRICING OF CLASS A SHARES
Net assets attributable to Class A shares $ -- $ 37,824,925 $ -- $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) -- 3,303,324 -- --
====================================================================================================================================
Net asset value and redemption price per share $ -- $ 11.45 $ -- $ --
====================================================================================================================================
Maximum offering price per share $ -- $ 12.15 $ -- $ --
====================================================================================================================================
PRICING OF CLASS C SHARES
Net assets attributable to Class C shares $ -- $ 2,269,591 $ -- $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) -- 198,676 -- --
====================================================================================================================================
Net asset value, offering price and redemption price per share* $ -- $ 11.42 $ -- $ --
====================================================================================================================================
16
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities (Continued)
- --------------------------------------------------------------------------------
SMALL CAP ULTRA
SHORT DURATION SMALL VALUE SHORT DURATION
FIXED INCOME CAP CORE OPPORTUNITIES FIXED INCOME
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
PRICING OF CLASS Y SHARES
Net assets attributable to Class Y shares $ 595,951 $ 19,607,839 $ -- $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 59,959 1,707,878 -- --
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 9.94 $ 11.48 $ -- $ --
====================================================================================================================================
PRICING OF CLASS Z SHARES
Net assets attributable to Class Z shares $ 41,573,851 $ -- $ 76,823,142 $ 143,556,253
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) 4,184,292 -- 5,205,258 14,806,892
====================================================================================================================================
Net asset value, offering price and redemption price per share $ 9.94 $ -- $ 14.76 $ 9.70
====================================================================================================================================
PRICING OF INSTITUTIONAL CLASS SHARES
Net assets attributable to Institutional Class shares $ -- $ 7,647,215 $ -- $ --
====================================================================================================================================
Shares of beneficial interest outstanding (unlimited number
of shares authorized, no par value) -- 667,470 -- --
====================================================================================================================================
Net asset value, offering price and redemption price per share $ -- $ 11.46 $ -- $ --
====================================================================================================================================
* Redemption price per share varies by length of time shares are held.
See accompanying notes to financial statements.
17
- --------------------------------------------------------------------------------
Statements of Operations
For the Period Ended March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
EMERGING
CAPITAL CORE PLUS MARKETS FOCUSED
APPRECIATION FIXED INCOME EQUITY EQUITY
FUND(B) FUND(B) FUND(B) FUND(C)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends from affiliated securities $ 905 $ 1,972 $ 1,366 $ 97
Dividends from non-affiliated securities (A) 31,434 135,318 48,430 6,996
Interest -- -- 2 --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 32,339 137,290 49,798 7,093
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 16,359 15,689 48,830 3,153
Distribution expenses, Class A 1,493 1,219 1,605 92
Distribution expenses, Class C 925 3,503 4,593 247
Administration fees 4,362 6,973 8,878 901
Professional fees 12,658 15,109 15,048 8,055
Transfer Agent fees, Class A 173 57 19 8
Transfer Agent fees, Class C 13 19 37 8
Transfer Agent fees, Class Y 14 19 23 8
Transfer Agent fees, Institutional Class 13 19 19 8
Reports to shareholders 1,496 1,496 1,496 967
Registration fees, Class A 241 117 240 40
Registration fees, Class C 15 51 211 40
Registration fees, Class Y 123 30 75 40
Registration fees, Institutional Class 37 31 78 40
Trustees' fees and expenses 3,491 3,491 3,491 2,256
Postage and supplies 2,140 1,182 1,222 644
Custodian fees 91 677 1,396 6
Compliance fees and expenses 797 776 773 516
Other expenses 1,050 6,933 3,442 677
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 45,491 57,391 91,476 17,706
Fees waived by the Administrator (4,362) (6,973) (8,878) (901)
Fees waived and/or expenses reimbursed by the Advisor (20,280) (25,999) (14,238) (13,731)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 20,849 24,419 68,360 3,074
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 11,490 112,871 (18,562) 4,019
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) from security transactions 51,800 (30,690) 48,432 4,751
Net realized gains (losses) from foreign currency transactions -- 3,445 (26,994) --
Net change in unrealized appreciation/depreciation on investments 471,529 55,037 1,267,116 145,272
Net change in unrealized appreciation/depreciation on
foreign currency transactions -- (6,162) 1,738 --
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 523,329 21,630 1,290,292 150,023
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 534,819 $ 134,501 $ 1,271,730 $ 154,042
====================================================================================================================================
(A) Net of foreign tax withholding of: $ -- $ 104 $ 2,204 $ 111
(B) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
(C) Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
18
- --------------------------------------------------------------------------------
Statements of Operations (Continued)
- --------------------------------------------------------------------------------
GLOBAL GLOBAL HEALTHCARE AND INTERMEDIATE
EQUITY REAL ESTATE BIOTECHNOLOGY FIXED INCOME
FUND(B) FUND(B) FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends from affiliated securities $ 588 $ 295 $ 1,413 $ 8,540
Dividends from non-affiliated securities (A) 17,441 55,860 159,328 --
Interest -- -- 18 1,676,977
Income from securities loaned -- -- 2,945 --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 18,029 56,155 163,704 1,685,517
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 13,462 12,523 165,551 212,109
Distribution expenses, Class A 250 188 37,305 --
Distribution expenses, Class C 514 532 16,329 --
Administration fees 3,167 3,131 33,110 106,056
Professional fees 14,854 12,492 11,612 15,987
Transfer Agent fees, Class A 56 40 43,149 --
Transfer Agent fees, Class C 28 28 4,955 --
Transfer Agent fees, Class Y 39 39 -- --
Transfer Agent fees, Institutional Class 28 28 -- 2,538
Reports to shareholders 1,496 1,496 13,546 11,630
Registration fees, Class A 25 25 5,661 --
Registration fees, Class C 25 107 4,185 --
Registration fees, Class Y 40 40 -- --
Registration fees, Institutional Class 38 38 -- 3,819
Trustees' fees and expenses 3,491 3,491 4,264 4,757
Postage and supplies 2,112 2,117 16,600 3,319
Custodian fees 2,938 2,333 8,412 2,883
Compliance fees and expenses 797 797 997 811
Other expenses 3,440 1,048 1,452 5,428
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 46,800 40,493 367,128 369,337
Fees waived by the Administrator (3,167) (3,131) (33,110) (106,056)
Fees waived and/or expenses reimbursed by the Advisor (27,667) (20,843) (65,387) (51,114)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 15,966 16,519 268,631 212,167
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 2,063 39,636 (104,927) 1,473,350
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains from security transactions 48,932 42,903 2,680,687 258,228
Net realized gains (losses) from foreign currency transactions -- (671) 113 --
Net change in unrealized appreciation/depreciation on investments 46,103 190,545 (4,211) 710,202
Net change in unrealized appreciation/depreciation on
foreign currency transactions -- (42) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 95,035 232,735 2,676,589 968,430
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 97,098 $ 272,371 $ 2,571,662 $ 2,441,780
====================================================================================================================================
(A) Net of foreign tax withholding of: $ 886 $ 1,678 $ 307 $ --
(B) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
19
- --------------------------------------------------------------------------------
Statements of Operations (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL INTERNATIONAL LARGE CAP MARKET
FIXED INCOME GROWTH RELATIVE VALUE NEUTRAL EQUITY
FUND(C) FUND FUND(C) FUND(C)
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends from affiliated securities $ 1,203 $ 1,209 $ 415 $ 1,498
Dividends from non-affiliated securities (A) -- 359,703 28,040 19,550
Interest (B) 80,033 4,729 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 81,236 365,641 28,455 21,048
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 19,371 163,836 11,896 67,037
Distribution expenses, Class A 187 45,350 280 631
Distribution expenses, Class C 609 603 964 560
Administration fees 7,044 36,408 3,399 10,091
Professional fees 15,097 12,971 12,620 12,616
Transfer Agent fees, Class A 30 3,568 54 502
Transfer Agent fees, Class C 18 168 24 19
Transfer Agent fees, Class Y 20 49 20 19
Transfer Agent fees, Institutional Class 18 -- 20 --
Reports to shareholders 1,496 4,959 1,496 1,496
Registration fees, Class A 70 4,646 11 10
Registration fees, Class C 56 4,497 7 7
Registration fees, Class Y 69 4,555 9 9
Registration fees, Institutional Class 73 -- 12 --
Trustees' fees and expenses 3,491 4,174 3,491 3,491
Postage and supplies 978 5,180 1,343 881
Custodian fees 679 6,021 69 3,775
Compliance fees and expenses 773 994 773 776
Other expenses 7,474 1,447 1,047 1,280
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 57,553 299,426 37,535 103,200
Fees waived by the Administrator (7,044) (36,408) (3,399) (10,091)
Fees waived and/or expenses reimbursed by the Advisor (24,984) (16,861) (18,977) (14,577)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 25,525 246,157 15,159 78,532
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 55,711 119,484 13,296 (57,484)
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
Net realized gains (losses) from security transactions 29,824 (662,046) 5,320 (324,949)
Net realized gains from foreign currency transactions 256,237 -- -- --
Net change in unrealized appreciation/depreciation on investments (325,885) 2,588,108 465,647 36,302
Net change in unrealized appreciation/depreciation on
foreign currency transactions 87,191 -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS 47,367 1,926,062 470,967 (288,647)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 103,078 $ 2,045,546 $ 484,263 $ (346,131)
====================================================================================================================================
(A) Net of foreign tax withholding of: $ -- $ 10,127 $ -- $ 114
(B) Net of foreign tax withholding of: 312 -- -- --
(C) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
20
- --------------------------------------------------------------------------------
Statements of Operations (Continued)
- --------------------------------------------------------------------------------
SANDS CAPITAL
MID MID CAP PREMIUM SELECT
CAP VALUE YIELD EQUITY GROWTH
FUND FUND(B) FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends from affiliated securities $ 3,334 $ 270 $ 2,427 $ 16,791
Dividends from non-affiliated securities (A) 1,550,868 37,818 551,378 1,890,300
Interest -- -- 3 --
Income from securities loaned 17,387 -- -- 1,111
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,571,589 38,088 553,808 1,908,202
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 619,636 13,890 98,319 2,041,389
Distribution expenses, Class A 957 181 25,711 --
Distribution expenses, Class C 646 532 20,828 --
Administration fees 154,910 3,268 28,091 475,940
Shareholder servicing fees 2,111 -- -- 424,122
Transfer Agent fees, Class A 874 27 1,921 --
Transfer Agent fees, Class C 200 16 470 --
Transfer Agent fees, Class Y -- 18 62 17,407
Transfer Agent fees, Class Z 4,488 -- -- 132,452
Transfer Agent fees, Institutional Class 5,485 16 -- --
Registration fees, Class A 3,640 127 4,701 --
Registration fees, Class C 3,640 44 3,662 --
Registration fees, Class Y -- 473 5,603 4,104
Registration fees, Class Z 3,640 -- -- 6,278
Registration fees, Institutional Class 3,640 60 -- --
Professional fees 20,169 12,636 10,114 26,115
Postage and supplies 9,874 1,301 4,218 42,462
Reports to shareholders 5,087 1,496 2,752 41,018
Trustees' fees and expenses 4,239 3,491 4,266 4,266
Custodian fees 5,530 69 1,859 5,815
Compliance fees and expenses 1,496 778 924 1,838
Performance based fees -- -- -- 270,734
Other expenses 5,434 1,050 656 9,323
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 855,696 39,473 214,157 3,503,263
Fees waived by the Administrator (140,201) (3,268) (28,091) (171,321)
Fees waived and/or expenses reimbursed by the Advisor -- (20,604) (5,757) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 715,495 15,601 180,309 3,331,942
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 856,094 22,487 373,499 (1,423,740)
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 17,713,541 102,481 320,299 5,786,812
Net change in unrealized appreciation/depreciation on investments 988,434 364,449 2,155,270 55,005,439
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 18,701,975 466,930 2,475,569 60,792,251
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 19,558,069 $ 489,417 $ 2,849,068 $ 59,368,511
====================================================================================================================================
(A) Net of foreign tax withholding of: $ 7,375 $ -- $ 13,491 $ --
(B) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
21
- --------------------------------------------------------------------------------
Statements of Operations (Continued)
- --------------------------------------------------------------------------------
SMALL CAP ULTRA
SHORT DURATION SMALL VALUE SHORT DURATION
FIXED INCOME CAP CORE OPPORTUNITIES FIXED INCOME
FUND FUND(A) FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Dividends from affiliated securities $ 1,027 $ 2,166 $ 2,128 $ 14,759
Dividends from non-affiliated securities -- 199,936 458,145 --
Interest 822,861 -- 4 1,619,921
Income from securities loaned -- -- 102,064 --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 823,888 202,102 562,341 1,634,680
- ------------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fees 54,143 85,604 365,694 150,109
Distribution expenses, Class A -- 10,204 -- --
Distribution expenses, Class C -- 3,825 -- --
Administration fees 43,315 20,142 76,989 120,089
Shareholder servicing fees 51,207 -- 96,235 132,097
Transfer Agent fees, Class A -- 192 -- --
Transfer Agent fees, Class C -- 54 -- --
Transfer Agent fees, Class Y 3,818 18 -- --
Transfer Agent fees, Class Z 17,699 -- 81,278 46,872
Transfer Agent fees, Institutional Class -- 18 -- --
Registration fees, Class A -- 875 -- --
Registration fees, Class C -- 723 -- --
Registration fees, Class Y 6,452 754 -- --
Registration fees, Class Z 4,581 -- 7,826 3,640
Registration fees, Institutional Class -- 167 -- --
Professional fees 15,689 12,636 15,259 18,051
Postage and supplies 5,603 1,288 8,053 9,002
Reports to shareholders 10,407 1,496 23,935 11,468
Trustees' fees and expenses 4,266 3,491 4,239 4,239
Custodian fees 634 382 879 1,598
Compliance fees and expenses 998 776 1,097 1,247
Other expenses 6,726 1,050 12,365 8,826
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 225,538 143,695 693,849 507,238
Fees waived by the Administrator (43,315) (20,142) (76,989) (92,270)
Fees waived and/or expenses reimbursed by the Advisor (22,805) (1,092) (39,717) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses 159,418 122,461 577,143 414,968
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 664,470 79,641 (14,802) 1,219,712
- ------------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS
Net realized gains from security transactions 7,894 281,681 7,851,135 133,687
Net change in unrealized appreciation/depreciation on investments 7,746 2,339,172 18,331 523,593
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 15,640 2,620,853 7,869,466 657,280
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 680,110 $ 2,700,494 $ 7,854,664 $ 1,876,992
====================================================================================================================================
(A) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
22
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
EMERGING
CAPITAL CORE PLUS MARKETS FOCUSED
APPRECIATION FIXED INCOME EQUITY EQUITY
FUND FUND FUND FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2010(A) 2010(A) 2010(A) 2010(B)
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ 11,490 $ 112,871 $ (18,562) $ 4,019
Net realized gains (losses) from security transactions 51,800 (30,690) 48,432 4,751
Net realized gains (losses) from foreign currency transactions -- 3,445 (26,994) --
Net change in unrealized appreciation/depreciation on investments 471,529 55,037 1,267,116 145,272
Net change in unrealized appreciation/depreciation from foreign
currency transactions -- (6,162) 1,738 --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 534,819 134,501 1,271,730 154,042
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class A -- (16,485) -- --
From net investment income, Class C -- (8,703) -- --
From net investment income, Class Y (129) (5,223) -- --
From net investment income, Institutional Class (7,574) (87,008) -- --
From net realized gains, Class A -- -- -- --
From net realized gains, Class C -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (7,703) (117,419) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS A
Proceeds from shares sold 1,823,876 2,564,753 2,880,392 189,113
Reinvested distributions -- 10,821 -- --
Payments for shares redeemed (13,416) (99,146) (215,627) --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS A SHARE TRANSACTIONS 1,810,460 2,476,428 2,664,765 189,113
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C
Proceeds from shares sold 265,380 1,378,916 2,035,931 102,500
Reinvested distributions -- 6,817 -- --
Payments for shares redeemed (2,678) (82,610) (34,477) --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS C SHARE TRANSACTIONS 262,702 1,303,123 2,001,454 102,500
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Proceeds from shares sold 172,799 668,666 1,145,374 100,000
Reinvested distributions 129 4,043 -- --
Payments for shares redeemed (47,634) (108,682) (110,024) --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS Y SHARE TRANSACTIONS 125,294 564,027 1,035,350 100,000
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Proceeds from shares sold 2,702,500 9,759,912 10,133,289 1,700,000
Reinvested distributions 7,574 64,796 -- --
Payments for shares redeemed (2,685) (2,487) (2,775) --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM INSTITUTIONAL CLASS SHARE TRANSACTIONS 2,707,389 9,822,221 10,130,514 1,700,000
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 5,432,961 14,182,881 17,103,813 2,245,655
NET ASSETS
Beginning of period -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 5,432,961 $ 14,182,881 $ 17,103,813 $ 2,245,655
====================================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ 51,800 $ (4,548) $ (18,562) $ 4,019
====================================================================================================================================
(A) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
(B) Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
23
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
GLOBAL GLOBAL
EQUITY REAL ESTATE HEALTHCARE AND
FUND FUND BIOTECHNOLOGY FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED YEAR
MARCH 31, MARCH 31, MARCH 31, ENDED
2010(A) 2010(A) 2010 SEPTEMBER 30,
(UNAUDITED) (UNAUDITED) (UNAUDITED) 2009
- ------------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ 2,063 $ 39,636 $ (104,927) $ (226,577)
Net realized gains (losses) from security transactions 48,932 42,903 2,680,687 (10,671,346)
Net realized gains (losses) from foreign currency transactions -- (671) 113 (137,152)
Net change in unrealized appreciation/depreciation on investments 46,103 190,545 (4,211) (562,790)
Net change in unrealized appreciation/depreciation from foreign
currency transactions -- (42) -- 734
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 97,098 272,371 2,571,662 (11,597,131)
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class A -- (1,520) -- --
From net investment income, Class C -- (1,127) -- --
From net investment income, Class Y (1,351)
From net investment income, Institutional Class (661) (36,253) -- --
From net realized gains, Class A -- -- -- --
From net realized gains, Class C -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (661) (40,251) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS A
Proceeds from shares sold 497,224 1,016,099 3,309,013 13,960,719
Reinvested distributions -- 1,520 -- --
Payments for shares redeemed (3,198) (9,262) (10,328,264) (30,335,581)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS A SHARE TRANSACTIONS 494,026 1,008,357 (7,019,251) (16,374,862)
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS C
Proceeds from shares sold 102,500 106,881 61,683 592,896
Reinvested distributions -- 1,127 -- --
Payments for shares redeemed (2,577) (2,570) (739,510) (1,993,164)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS C SHARE TRANSACTIONS 99,923 105,438 (677,827) (1,400,268)
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS Y
Proceeds from shares sold 115,000 109,250 -- --
Reinvested distributions -- 1,351 -- --
Payments for shares redeemed (2,585) (2,577) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS Y SHARE TRANSACTIONS 112,415 108,024 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Proceeds from shares sold 2,702,500 2,717,500 -- --
Reinvested distributions 661 36,253 -- --
Payments for shares redeemed (2,585) (2,578) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM INSTITUTIONAL CLASS SHARE TRANSACTIONS 2,700,576 2,751,175 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 3,503,377 4,205,114 (5,125,416) (29,372,261)
NET ASSETS
Beginning of period -- -- 37,515,254 66,887,515
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 3,503,377 $ 4,205,114 $ 32,389,838 $ 37,515,254
====================================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ 1,402 $ (615) $ (118,386) $ (13,459)
====================================================================================================================================
(A) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
24
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL
INTERMEDIATE FIXED FIXED INCOME
INCOME FUND FUND
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED
MARCH 31, ENDED MARCH 31,
2010 SEPTEMBER 30, 2010(A)
(UNAUDITED) 2009 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 1,473,350 $ 845,951 $ 55,711
Net realized gains (losses) from security transactions 258,228 (1,842,058) 29,824
Net realized gains from foreign currency transactions -- -- 256,237
Net change in unrealized appreciation/depreciation on investments 710,202 3,248,154 (325,885)
Net change in unrealized appreciation/depreciation from foreign
currency transactions -- -- 87,191
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 2,441,780 2,252,047 103,078
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class A -- -- (937)
From net investment income, Class C -- (294)
From net investment income, Class Y -- -- (789)
From net investment income, Institutional Class (1,483,544) (855,228) (53,689)
From net realized gains, Class A -- -- --
From net realized gains, Class C -- -- --
From net realized gains, Class Y -- -- --
- -----------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (1,483,544) (855,228) (55,709)
- -----------------------------------------------------------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS A
Proceeds from shares sold -- -- 189,781
Reinvested distributions -- -- 693
Payments for shares redeemed* -- -- (9,598)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS A SHARE TRANSACTIONS -- -- 180,876
- -----------------------------------------------------------------------------------------------------------------------
CLASS C
Proceeds from shares sold -- -- 144,829
Reinvested distributions -- -- 243
Payments for shares redeemed -- -- (2,494)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS C SHARE TRANSACTIONS -- -- 142,578
- -----------------------------------------------------------------------------------------------------------------------
CLASS Y
Proceeds from shares sold -- -- 115,123
Reinvested distributions -- -- 665
Payments for shares redeemed -- (12,503)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS Y SHARE TRANSACTIONS -- -- 103,285
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Proceeds from shares sold 5,766,027 99,192,335 6,711,382
Reinvested distributions 32,575 370,061 44,807
Payments for shares redeemed (1,520,137) (12,610,797) (2,501)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM INSTITUTIONAL CLASS SHARE TRANSACTIONS 4,278,465 86,951,599 6,753,688
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 5,236,701 88,348,418 7,227,796
NET ASSETS
Beginning of period 103,724,982 15,376,564 --
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 108,961,683 $ 103,724,982 $ 7,227,796
=======================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ (8,902) $ 1,292 $ 2
=======================================================================================================================
(A) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
25
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
LARGE CAP
INTERNATIONAL RELATIVE
GROWTH FUND VALUE FUND
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED
MARCH 31, ENDED MARCH 31,
2010 SEPTEMBER 30, 2010(A)
(UNAUDITED) 2009 (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 119,484 $ 386,618 $ 13,296
Net realized gains (losses) from security transactions (662,046) (3,390,371) 5,320
Net change in unrealized appreciation/depreciation on investments 2,588,108 3,491,540 465,647
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 2,045,546 487,787 484,263
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class A (505,579) (968) (671)
From net investment income, Class C (230) -- --
From net investment income, Class Y (104) (5) (375)
From net investment income, Institutional Class -- -- (12,250)
- -----------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (505,913) (973) (13,296)
- -----------------------------------------------------------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS A
Proceeds from shares sold 1,039,695 12,785,708 393,338
Reinvested distributions 348,317 1,008 235
Payments for shares redeemed (4,208,866) (1,798,150) (3,949)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS A SHARE TRANSACTIONS (2,820,854) 10,988,566 389,624
- -----------------------------------------------------------------------------------------------------------------------
CLASS C
Proceeds from shares sold 88,419 163,436 223,899
Payments for shares redeemed (101,277) (56,857) (5,682)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS C SHARE TRANSACTIONS (12,858) 106,579 218,217
- -----------------------------------------------------------------------------------------------------------------------
CLASS Y
Proceeds from shares sold 142 13,098 102,690
Reinvested distributions 31 5 185
Payments for shares redeemed (11,708) -- (2,693)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS Y SHARE TRANSACTIONS (11,535) 13,103 100,182
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Proceeds from shares sold -- -- 2,708,680
Reinvested distributions -- -- 6,070
Payments for shares redeemed -- -- (2,693)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM INSTITUTIONAL CLASS SHARE TRANSACTIONS -- -- 2,712,057
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (1,305,614) 11,595,062 3,891,047
NET ASSETS
Beginning of period 37,231,867 25,636,805 --
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 35,926,253 $ 37,231,867 $ 3,891,047
=======================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ (783) $ 385,646 $ --
=======================================================================================================================
(A) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
26
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
MARKET
NEUTRAL
EQUITY FUND MID CAP FUND
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR
MARCH 31, MARCH 31, ENDED
2010(A) 2010 SEPTEMBER 30,
(UNAUDITED) (UNAUDITED) 2009
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ (57,484) $ 856,094 $ 1,187,396
Net realized gains (losses) from security transactions (324,949) 17,713,541 (134,664,066)
Net change in unrealized appreciation/depreciation on investments 36,302 988,434 51,982,386
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS (346,131) 19,558,069 (81,494,284)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class A -- (2,244) (760)
From net investment income, Class C -- -- --
From net investment income, Class Y -- (1,190,968) --
From net investment income, Class Z -- (9,678) (6,806)
From net investment income, Institutional Class -- -- (1,025,805)
From net realized gains, Class A -- -- (679)
From net realized gains, Class C -- -- (196)
From net realized gains, Class Z -- -- (6,060)
From net realized gains, Institutional Class -- -- (544,160)
- -----------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS -- (1,202,890) (1,584,466)
- -----------------------------------------------------------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS A
Proceeds from shares sold 774,744 275,858 356,417
Reinvested distributions -- 1,943 1,271
Payments for shares redeemed (305,453) (97,020) (86,398)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS A SHARE TRANSACTIONS 469,291 180,781 271,290
- -----------------------------------------------------------------------------------------------------------------------
CLASS C
Proceeds from shares sold 149,937 46,272 177,196
Reinvested distributions -- -- 196
Payments for shares redeemed (2,500) (944) (51,251)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS C SHARE TRANSACTIONS 147,437 45,328 126,141
- -----------------------------------------------------------------------------------------------------------------------
CLASS Y
Proceeds from shares sold 9,807,500 -- --
Payments for shares redeemed (2,505) -- --
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS Y SHARE TRANSACTIONS 9,804,995 -- --
- -----------------------------------------------------------------------------------------------------------------------
CLASS Z
Proceeds from shares sold -- 464,432 905,071
Reinvested distributions -- 9,404 11,591
Payments for shares redeemed -- (452,362) (1,753,109)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS Z SHARE TRANSACTIONS -- 21,474 (836,447)
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Proceeds from shares sold -- 3,187,511 62,211,281
Reinvested distributions -- 60,646 135,921
Payments for shares redeemed -- (44,512,886) (233,893,142)
- -----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM INSTITUTIONAL CLASS SHARE TRANSACTIONS -- (41,264,729) (171,545,940)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 10,075,592 (22,661,967) (255,063,706)
NET ASSETS
Beginning of period -- 170,748,774 425,812,480
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 10,075,592 $ 148,086,807 $ 170,748,774
=======================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ (57,484) $ (121,836) $ 224,960
=======================================================================================================================
(A) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
27
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
MID CAP PREMIUM YIELD
VALUE FUND EQUITY FUND
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR
MARCH 31, MARCH 31, ENDED
2010(A) 2010 SEPTEMBER 30,
(UNAUDITED) (UNAUDITED) 2009
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 22,487 $ 373,499 $ 660,837
Net realized gains (losses) from security transactions 102,481 320,299 (6,642,383)
Net change in unrealized appreciation/depreciation on investments 364,449 2,155,270 3,246,251
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 489,417 2,849,068 (2,735,295)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class A (733) (276,453) (617,662)
From net investment income, Class C (375) (40,238) (38,913)
From net investment income, Class Y (907) (56,806) (4,260)
From net investment income, Institutional Class (17,556) -- --
- -----------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (19,571) (373,497) (660,835)
- -----------------------------------------------------------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS A
Proceeds from shares sold 217,193 1,417,958 3,921,903
Reinvested distributions 733 217,292 586,503
Payments for shares redeemed (29,344) (1,534,578) (406,034)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS A SHARE TRANSACTIONS 188,582 100,672 4,102,372
- -----------------------------------------------------------------------------------------------------------------------
CLASS C
Proceeds from shares sold 106,028 1,663,227 2,576,967
Reinvested distributions 375 21,974 24,214
Payments for shares redeemed (2,665) (172,615) (45,939)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS C SHARE TRANSACTIONS 103,738 1,512,586 2,555,242
- -----------------------------------------------------------------------------------------------------------------------
CLASS Y
Proceeds from shares sold 252,500 6,907,307 507,005
Reinvested distributions 907 36,682 4,260
Payments for shares redeemed (2,672) (248,346) (4,189)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS Y SHARE TRANSACTIONS 250,735 6,695,643 507,076
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Proceeds from shares sold 2,702,500 -- --
Reinvested distributions 17,556 -- --
Payments for shares redeemed (2,673) -- --
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM INSTITUTIONAL CLASS SHARE TRANSACTIONS 2,717,383 -- --
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE IN NET ASSETS 3,730,284 10,784,472 3,768,560
NET ASSETS
Beginning of period -- 23,748,773 19,980,213
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 3,730,284 $ 34,533,245 $ 23,748,773
=======================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ 2,916 $ (4,193) $ (4,195)
=======================================================================================================================
(A) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
28
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
SANDS CAPITAL
SELECT GROWTH SHORT DURATION
FUND FIXED INCOME FUND
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
MARCH 31, ENDED MARCH 31, ENDED
2010 SEPTEMBER 30, 2010 SEPTEMBER 30,
(UNAUDITED) 2009 (UNAUDITED) 2009(A)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ (1,423,740) $ (2,302,601) $ 664,470 $ 1,449,500
Net realized gains (losses) from security transactions 5,786,812 (121,258,262) 7,894 149,559
Net change in unrealized appreciation on investments 55,005,439 118,207,340 7,746 1,486,380
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 59,368,511 (5,353,523) 680,110 3,085,439
- ------------------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class Y -- -- (11,268) (3,115)
From net investment income, Class Z -- -- (690,125) (1,476,456)
- ------------------------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS -- -- (701,393) (1,479,571)
- ------------------------------------------------------------------------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS Y
Proceeds from shares sold 16,343,915 24,126,933 449,602 583,877
Reinvested distributions -- -- 8,319 3203
Payments for shares redeemed (17,334,210) (67,763,802) (452,283) (60)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS Y SHARE TRANSACTIONS (990,295) (43,636,869) 5,638 587,020
- ------------------------------------------------------------------------------------------------------------------------------------
CLASS Z
Proceeds from shares sold 121,692,335 162,783,632 2,291,922 4,828,650
Reinvested distributions -- -- 537,168 1,447,580
Payments for shares redeemed (57,161,235) (192,550,314) (4,984,239) (11,117,272)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS Z SHARE TRANSACTIONS 64,531,100 (29,766,682) (2,155,149) (4,841,042)
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 122,909,316 (78,757,074) (2,170,794) (2,648,154)
NET ASSETS
Beginning of period 416,117,887 494,874,961 44,340,596 46,988,750
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 539,027,203 $ 416,117,887 $ 42,169,802 $ 44,340,596
====================================================================================================================================
ACCUMULATED NET INVESTMENT INCOME (LOSS) $ (1,423,740) $ -- $ (9,146) $ 27,777
====================================================================================================================================
(A) Class Y represents the period from commencement of operations (May 4, 2009)
through September 30, 2009.
See accompanying notes to financial statements.
29
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
SMALL CAP SMALL CAP VALUE
CORE EQUITY OPPORTUNITIES
FUND FUND
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR
MARCH 31, MARCH 31, ENDED
2010(A) 2010 SEPTEMBER 30,
(UNAUDITED) (UNAUDITED) 2009
- -----------------------------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income (loss) $ 79,641 $ (14,802) $ 169,523
Net realized gains (losses) from security transactions 281,681 7,851,135 (38,806,211)
Net change in unrealized appreciation/depreciation on investments 2,339,172 18,331 15,045,658
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS 2,700,494 7,854,664 (23,591,030)
- -----------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class Z -- -- (155,058)
From net investment income, Institutional Class (9,676) -- --
From net realized gains, Class Z -- -- (135,276)
- -----------------------------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (9,676) -- (290,334)
- -----------------------------------------------------------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS A
Proceeds from shares sold 37,573,486 5,383,574 --
Reinvested distributions -- -- --
Payments for shares redeemed (733,756) (20,461,237) --
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS A SHARE TRANSACTIONS 36,839,730 (15,077,663) --
- -----------------------------------------------------------------------------------------------------------------------
CLASS C
Proceeds from shares sold 2,166,826 -- --
Payments for shares redeemed (2,705) -- --
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS C SHARE TRANSACTIONS 2,164,121 -- --
- -----------------------------------------------------------------------------------------------------------------------
CLASS Y
Proceeds from shares sold 19,534,573 -- --
Payments for shares redeemed (817,705) -- --
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM CLASS Y SHARE TRANSACTIONS 18,716,868 -- --
- -----------------------------------------------------------------------------------------------------------------------
CLASS Z
Proceeds from shares sold -- -- 13,589,393
Reinvested distributions -- -- 279,749
Payments for shares redeemed -- -- (38,054,151)
- -----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CLASS Z SHARE TRANSACTIONS -- -- (24,185,009)
- -----------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL CLASS
Proceeds from shares sold 6,931,067 -- --
Reinvested distributions 9,676 -- --
Payments for shares redeemed (2,710) -- --
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM INSTITUTIONAL CLASS SHARE TRANSACTIONS 6,938,033 -- --
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 67,349,570 (7,222,999) (48,066,373)
NET ASSETS
Beginning of period -- 84,046,141 132,112,514
- -----------------------------------------------------------------------------------------------------------------------
End of period $ 67,349,570 $ 76,823,142 $ 84,046,141
=======================================================================================================================
ACCUMULATED NET INVESTMENT INCOME $ 69,965 $ 1,258 $ 16,060
=======================================================================================================================
(A) Represents the period from commencement of operations (September 30, 2009)
through March 31, 2010.
See accompanying notes to financial statements.
30
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets (Continued)
- --------------------------------------------------------------------------------
ULTRA SHORT
DURATION FIXED INCOME
FUND
- -----------------------------------------------------------------------------------------------------
PERIOD
ENDED YEAR
MARCH 31, ENDED
2010 SEPTEMBER 30,
(UNAUDITED) 2009
- -----------------------------------------------------------------------------------------------------
FROM OPERATIONS
Net investment income $ 1,219,712 $ 4,034,852
Net realized gains (losses) from security transactions 133,687 (3,327,009)
Net change in unrealized appreciation on investments 523,593 2,081,033
- -----------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS 1,876,992 2,788,876
- -----------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS
From net investment income, Class Z (1,473,203) (4,095,134)
- -----------------------------------------------------------------------------------------------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS TO SHAREHOLDERS (1,473,203) (4,095,134)
- -----------------------------------------------------------------------------------------------------
FROM CAPITAL SHARE TRANSACTIONS
CLASS Z
Proceeds from shares sold 57,496,230 39,273,005
Reinvested distributions 1,169,790 3,943,039
Payments for shares redeemed (24,065,813) (77,194,787)
- -----------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM CLASS Z SHARE TRANSACTIONS 34,600,207 (33,978,743)
- -----------------------------------------------------------------------------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 35,003,996 (35,285,001)
NET ASSETS
Beginning of period 108,552,257 143,837,258
- -----------------------------------------------------------------------------------------------------
End of period $ 143,556,253 $ 108,552,257
=====================================================================================================
ACCUMULATED NET INVESTMENT INCOME $ 123,943 $ 123,995
=====================================================================================================
See accompanying notes to financial statements.
31
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01
Net realized and unrealized gains on investments 1.28
- --------------------------------------------------------------------------------
Total from investment operations 1.29
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.29
================================================================================
Total return (B) 12.90%(C)
================================================================================
Net assets at end of period (000s) $ 1,955
================================================================================
Ratio of net expenses to average net assets 1.19%(D)
Ratio of gross expenses to average net assets 2.22%(D)
Ratio of net investment income to average net assets 0.22%(D)
Portfolio turnover rate 11%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
CAPITAL APPRECIATION FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- -------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- -------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- -------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (0.02)
Net realized and unrealized gains on investments 1.27
- -------------------------------------------------------------------------------
Total from investment operations 1.25
- -------------------------------------------------------------------------------
Net asset value at end of period $ 11.25
================================================================================
Total return (B) 12.50%(B)
================================================================================
Net assets at end of period (000s) $ 282
================================================================================
Ratio of net expenses to average net assets 1.93%(C)
Ratio of gross expenses to average net assets 2.94%(C)
Ratio of net investment loss to average net assets (0.48%)(C)
Portfolio turnover rate 11%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
32
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.03
Net realized and unrealized gains on investments 1.28
- --------------------------------------------------------------------------------
Total from investment operations 1.31
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.01)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.30
================================================================================
Total return 13.13%(B)
================================================================================
Net assets at end of period (000s) $ 140
================================================================================
Ratio of net expenses to average net assets 0.94%(C)
Ratio of gross expenses to average net assets 2.16%(C)
Ratio of net investment income to average net assets 0.52%(C)
Portfolio turnover rate 11%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
CAPITAL APPRECIATION FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.04
Net realized and unrealized gains on investments 1.28
- --------------------------------------------------------------------------------
Total from investment operations 1.32
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.03)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.29
================================================================================
Total return 13.20%(B)
================================================================================
Net assets at end of period (000s) $ 3,056
================================================================================
Ratio of net expenses to average net assets 0.79%(C)
Ratio of gross expenses to average net assets 1.95%(C)
Ratio of net investment income to average net assets 0.71%(C)
Portfolio turnover rate 11%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
33
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
CORE PLUS FIXED INCOME FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.13
Net realized and unrealized gains (losses) on investments 0.04
- --------------------------------------------------------------------------------
Total from investment operations 0.17
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.14)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.03
================================================================================
Total return (B) 1.70%(C)
================================================================================
Net assets at end of period (000s) $ 2,486
================================================================================
Ratio of net expenses to average net assets 0.95%(D)
Ratio of gross expenses to average net assets 1.68%(D)
Ratio of net investment income to average net assets 3.11%(D)
Portfolio turnover rate 119%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
CORE PLUS FIXED INCOME FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.10
Net realized and unrealized gains (losses) on investments 0.03
- --------------------------------------------------------------------------------
Total from investment operations 0.13
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.10)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.03
================================================================================
Total return (B) 1.34%(C)
================================================================================
Net assets at end of period (000s) $ 1,311
================================================================================
Ratio of net expenses to average net assets 1.70%(D)
Ratio of gross expenses to average net assets 2.43%(D)
Ratio of net investment income to average net assets 2.39%(D)
Portfolio turnover rate 119%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
34
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
CORE PLUS FIXED INCOME FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.15
Net realized and unrealized gains (losses) on investments 0.03
- --------------------------------------------------------------------------------
Total from investment operations 0.18
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.15)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.03
================================================================================
Total return 1.81%(B)
================================================================================
Net assets at end of period (000s) $ 568
================================================================================
Ratio of net expenses to average net assets 0.70%(C)
Ratio of gross expenses to average net assets 1.45%(C)
Ratio of net investment income to average net assets 3.21%(C)
Portfolio turnover rate 119%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
CORE PLUS FIXED INCOME FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.16
Net realized and unrealized gains (losses) on investments 0.03
- --------------------------------------------------------------------------------
Total from investment operations 0.19
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.16)
- --------------------------------------------------------------------------------
Total distributions (0.16)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.03
================================================================================
Total return 1.92%(B)
================================================================================
Net assets at end of period (000s) $ 9,818
================================================================================
Ratio of net expenses to average net assets 0.50%(C)
Ratio of gross expenses to average net assets 1.52%(C)
Ratio of net investment income to average net assets 3.38%(C)
Portfolio turnover rate 119%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
35
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (0.02)
Net realized and unrealized gains on investments 1.56
- --------------------------------------------------------------------------------
Total from investment operations 1.54
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.54
================================================================================
Total return (B) 15.40%(C)
================================================================================
Net assets at end of period (000s) $ 2,806
================================================================================
Ratio of net expenses to average net assets 1.73%(D)
Ratio of gross expenses to average net assets 2.13%(D)
Ratio of net investment loss to average net assets (0.57%)(D)
Portfolio turnover rate 5%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
EMERGING MARKETS EQUITY FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (0.04)
Net realized and unrealized gains on investments 1.52
- --------------------------------------------------------------------------------
Total from investment operations 1.48
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.48
================================================================================
Total return (B) 14.80%(C)
================================================================================
Net assets at end of period (000s) $ 2,095
================================================================================
Ratio of net expenses to average net assets 2.48%(D)
Ratio of gross expenses to average net assets 2.87%(D)
Ratio of net investment loss to average net assets (1.44%)(D)
Portfolio turnover rate 5%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
36
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
EMERGING MARKETS EQUITY FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (0.01)
Net realized and unrealized gains on investments 1.56
- --------------------------------------------------------------------------------
Total from investment operations 1.55
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.55
================================================================================
Total return 15.50%(B)
================================================================================
Net assets at end of period (000s) $ 1,076
================================================================================
Ratio of net expenses to average net assets 1.48%(C)
Ratio of gross expenses to average net assets 1.85%(C)
Ratio of net investment loss to average net assets (0.48%)(C)
Portfolio turnover rate 5%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
EMERGING MARKETS EQUITY FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (0.01)
Net realized and unrealized gains on investments 1.57
- --------------------------------------------------------------------------------
Total from investment operations 1.56
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.56
================================================================================
Total return 15.60%(B)
================================================================================
Net assets at end of period (000s) $ 11,127
================================================================================
Ratio of net expenses to average net assets 1.34%(C)
Ratio of gross expenses to average net assets 1.91%(C)
Ratio of net investment loss to average net assets (0.22%)(C)
Portfolio turnover rate 5%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
37
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
FOCUSED EQUITY FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01
Net realized and unrealized gains on investments 0.92
- --------------------------------------------------------------------------------
Total from investment operations 0.93
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.93
================================================================================
Total return (B) 9.30%(C)
================================================================================
Net assets at end of period (000s) $ 204
================================================================================
Ratio of net expenses to average net assets 0.88%(D)(E)
Ratio of gross expenses to average net assets 4.12%(D)
Ratio of net investment income to average net assets 0.63%(D)
Portfolio turnover rate 6%(D)
(A) Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
(E) The advisor voluntarily waived 0.32% during the period and had they not, the
net expense ratio would have been 1.20%.
FOCUSED EQUITY FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.00(B)
Net realized and unrealized gains on investments 0.92
- --------------------------------------------------------------------------------
Total from investment operations 0.92
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.92
================================================================================
Total return (C) 9.20%(D)
================================================================================
Net assets at end of period (000s) $ 112
================================================================================
Ratio of net expenses to average net assets 1.31%(E)(F)
Ratio of gross expenses to average net assets 5.02%(E)
Ratio of net investment income to average net assets 0.12%(E)
Portfolio turnover rate 6%(E)
(A) Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
(B) Amount rounds to less than $.0.01 per share.
(C) Total returns shown exclude the effect of applicable sales loads.
(D) Not annualized.
(E) Annualized.
(F) The advisor voluntarily waived 0.64% during the period and had they not, the
net expense ratio would have been 1.95%.
See accompanying notes to financial statements.
38
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
FOCUSED EQUITY FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02
Net realized and unrealized gains on investments 0.92
- --------------------------------------------------------------------------------
Total from investment operations 0.94
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.94
================================================================================
Total return 9.40%(B)
================================================================================
Net assets at end of period (000s) $ 109
================================================================================
Ratio of net expenses to average net assets 0.64%(C)(D)
Ratio of gross expenses to average net assets 4.06%(C)
Ratio of net investment income to average net assets 0.78%(C)
Portfolio turnover rate 6%(C)
(A) Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
(B) Not annualized.
(C) Annualized.
(D) The advisor voluntarily waived 0.31% during the period and had they not, the
net expense ratio would have been 0.95%.
FOCUSED EQUITY FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02
Net realized and unrealized gains on investments 0.92
- --------------------------------------------------------------------------------
Total from investment operations 0.94
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.94
================================================================================
Total return 9.40%(B)
================================================================================
Net assets at end of period (000s) $ 1,820
================================================================================
Ratio of net expenses to average net assets 0.60%(C)(D)
Ratio of gross expenses to average net assets 3.70%(C)
Ratio of net investment income to average net assets 0.95%(C)
Portfolio turnover rate 6%(C)
(A) Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
(B) Not annualized.
(C) Annualized.
(D) The advisor voluntarily waived 0.20% during the period and had they not, the
net expense ratio would have been 0.80%.
See accompanying notes to financial statements.
39
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
GLOBAL EQUITY FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.00(B)
Net realized and unrealized gains on investments 0.30
- --------------------------------------------------------------------------------
Total from investment operations 0.30
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.30
================================================================================
Total return (C) 3.00%(D)
================================================================================
Net assets at end of period (000s) $ 500
================================================================================
Ratio of net expenses to average net assets 1.34%(E)
Ratio of gross expenses to average net assets 3.27%(E)
Ratio of net investment income to average net assets 0.10%(E)
Portfolio turnover rate 38%(E)
(A) The Fund commenced operations on September 30, 2009.
(B) Amount rounds to less than $0.01 per share.
(C) Total returns shown exclude the effect of applicable sales loads.
(D) Not annualized.
(E) Annualized.
GLOBAL EQUITY FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (0.05)
Net realized and unrealized gains on investments 0.31
- --------------------------------------------------------------------------------
Total from investment operations 0.26
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.26
================================================================================
Total return (B) 2.60%(C)
================================================================================
Net assets at end of period (000s) $ 103
================================================================================
Ratio of net expenses to average net assets 2.08%(D)
Ratio of gross expenses to average net assets 3.96%(D)
Ratio of net investment loss to average net assets (0.97%)(D)
Portfolio turnover rate 38%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
40
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
GLOBAL EQUITY FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.00(B)
Net realized and unrealized gains on investments 0.31
- --------------------------------------------------------------------------------
Total from investment operations 0.31
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.31
================================================================================
Total return 3.12%(C)
================================================================================
Net assets at end of period (000s) $ 116
================================================================================
Ratio of net expenses to average net assets 1.08%(D)
Ratio of gross expenses to average net assets 3.02%(D)
Ratio of net investment income to average net assets 0.05%(D)
Portfolio turnover rate 38%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Amount rounds to less than $0.01 per share.
(C) Not annualized.
(D) Annualized.
GLOBAL EQUITY FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01
Net realized and unrealized gains on investments 0.30
- --------------------------------------------------------------------------------
Total from investment operations 0.31
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.00)(B)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.31
================================================================================
Total return 3.10%(C)
================================================================================
Net assets at end of period (000s) $ 2,786
================================================================================
Ratio of net expenses to average net assets 0.93%(D)
Ratio of gross expenses to average net assets 2.87%(D)
Ratio of net investment income to average net assets 0.18%(D)
Portfolio turnover rate 38%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Amount rounds to less than $0.01 per share.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
41
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
GLOBAL REAL ESTATE FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.14
Net realized and unrealized gains on investments 0.70
- --------------------------------------------------------------------------------
Total from investment operations 0.84
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.12)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.72
================================================================================
Total return (B) 8.48%(C)
================================================================================
Net assets at end of period (000s) $ 1,026
================================================================================
Ratio of net expenses to average net assets 1.38%(D)
Ratio of gross expenses to average net assets 2.84%(D)
Ratio of net investment income to average net assets 3.31%(D)
Portfolio turnover rate 36%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
GLOBAL REAL ESTATE FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.07
Net realized and unrealized gains on investments 0.74
- --------------------------------------------------------------------------------
Total from investment operations 0.81
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.11)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.70
================================================================================
Total return (B) 8.11%(C)
================================================================================
Net assets at end of period (000s) $ 113
================================================================================
Ratio of net expenses to average net assets 2.13%(D)
Ratio of gross expenses to average net assets 3.74%(D)
Ratio of net investment income to average net assets 1.37%(D)
Portfolio turnover rate 36%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
42
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
GLOBAL REAL ESTATE FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.12
Net realized and unrealized gains on investments 0.74
- --------------------------------------------------------------------------------
Total from investment operations 0.86
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.13)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.73
================================================================================
Total return 8.65%(B)
================================================================================
Net assets at end of period (000s) $ 116
================================================================================
Ratio of net expenses to average net assets 1.13%(C)
Ratio of gross expenses to average net assets 2.65%(C)
Ratio of net investment income to average net assets 2.37%(C)
Portfolio turnover rate 36%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
GLOBAL REAL ESTATE FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.13
Net realized and unrealized gains on investments 0.73
- --------------------------------------------------------------------------------
Total from investment operations 0.86
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.13)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.73
================================================================================
Total return 8.69%(B)
================================================================================
Net assets at end of period (000s) $ 2,951
================================================================================
Ratio of net expenses to average net assets 0.98%(C)
Ratio of gross expenses to average net assets 2.50%(C)
Ratio of net investment income to average net assets 2.52%(C)
Portfolio turnover rate 36%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
43
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
HEALTHCARE AND BIOTECHNOLOGY FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
2010 --------------------------------------------------------------------------
(UNAUDITED) 2009 2008 2007 2006 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of
period $ 12.72 $ 15.10 $ 18.28 $ 15.91 $ 16.13 $ 13.79
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (0.04) (0.07) (0.11) (0.14) (0.18) (0.16)
Net realized and unrealized gains
(losses) on investments 1.36 (2.31) (1.09) 3.10 0.40 3.02
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.32 (2.38) (1.20) 2.96 0.22 2.86
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Distributions from net realized
gains -- -- (1.65) (0.59) (0.44) (0.52)
Distributions from return of
capital -- -- (0.33) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (1.98) (0.59) (0.44) (0.52)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 14.04 $ 12.72 $ 15.10 $ 18.28 $ 15.91 $ 16.13
====================================================================================================================================
Total return (A) 10.38%(C) (15.76%) (7.82%) 19.25% 1.37% 21.10%
====================================================================================================================================
Net assets at end of period (000's) $ 29,273 $ 34,029 $ 60,959 $ 53,295 $ 55,120 $ 59,742
====================================================================================================================================
Ratio of net expenses to average net
assets 1.55%(D) 1.55% 1.55% 1.67% 1.85%(B) 1.88%
Ratio of gross expenses to average
net assets 2.12%(D) 1.91% 1.73% 1.80% 1.85% 1.88%
Ratio of net investment loss to
average net assets (0.56%)(D) (0.43%) (0.72%) (0.63%) (0.99%) (1.35%)
Portfolio turnover rate 88%(D) 162% 127% 156% 158% 169%
(A) Total returns shown exclude the effect of applicable sales loads.
(B) The ratio of net expenses to average net assets excludes the effect of fees
paid indirectly. If these expense offsets were included, the ratio would
have been 1.84%.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
44
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
HEALTHCARE AND BIOTECHNOLOGY FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ---------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR YEAR PERIOD
MARCH 31, ENDED ENDED ENDED
2010 SEPT. 30, SEPT. 30, SEPT. 30,
(UNAUDITED) 2009 2008 2007(A)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 12.44 $ 14.90 $ 18.19 $ 15.98
- ---------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment loss (0.14) (0.17) (0.16) (0.03)
Net realized and unrealized gains (losses) on investments 1.39 (2.29) (1.15) 2.83
- ---------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.25 (2.46) (1.31) 2.80
- ---------------------------------------------------------------------------------------------------------------------
Less distributions:
Distributions from net realized gains -- -- (1.65) (0.59)
Distributions from return of capital -- -- (0.33) --
- ---------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (1.98) (0.59)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 13.69 $ 12.44 $ 14.90 $ 18.19
=====================================================================================================================
Total return (B) 10.05%(C) (16.51%) (8.53%) 18.15%(C)
=====================================================================================================================
Net assets at end of period (000s) $ 3,117 $ 3,486 $ 5,929 $ 1,396
=====================================================================================================================
Ratio of net expenses to average net assets 2.30%(D) 2.30% 2.30% 2.23%(D)
Ratio of gross expenses to average net assets 3.11%(D) 2.93% 2.64% 2.57%(D)
Ratio of net investment loss to average net assets (1.31%)(D) (1.17%) (1.46%) (1.27%)(D)
Portfolio turnover rate 88%(D) 162% 127% 156%
(A) Represents the period from commencement of operations (November 20, 2006)
through September 30, 2007.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
45
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
INTERMEDIATE FIXED INCOME FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
2010 --------------------------------------------------------------------------
(UNAUDITED) 2009 2008 2007 2006 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of
period $ 8.73 $ 8.90 $ 9.51 $ 9.58 $ 9.94 $ 10.27
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income 0.12 0.30 0.44 0.45 0.39 0.42
Net realized and unrealized gains
(losses) on investments 0.08 (0.17) (0.60) (0.07) (0.12) (0.19)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.20 0.13 (0.16) 0.38 0.27 0.23
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income (0.12) (0.30) (0.45) (0.45) (0.40) (0.42)
Distributions from net realized
gains -- -- -- -- (0.23) (0.14)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.12) (0.30) (0.45) (0.45) (0.63) (0.56)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 8.81 $ 8.73 $ 8.90 $ 9.51 $ 9.58 $ 9.94
====================================================================================================================================
Total return 2.33%(B) 1.44% (1.95%) 4.07% 2.87% 2.27%
====================================================================================================================================
Net assets at end of period (000's) $ 108,962 $ 103,725 $ 15,377 $ 19,485 $ 21,689 $ 26,166
====================================================================================================================================
Ratio of net expenses to average net
assets 0.40%(C) 0.52% 0.85% 0.87% 0.91%(A) 0.80%
Ratio of gross expenses to average
net assets 0.70%(C) 0.83% 1.15% 0.99% 0.95% 0.86%
Ratio of net investment income to
average net assets 2.78%(C) 3.12% 4.61% 4.72% 4.13% 3.91%
Portfolio turnover rate 19.23%(C) 125% 62% 71% 62% 70%
(A) The ratio of net expenses to average net assets excludes the effect of fees
paid indirectly. If these expense offsets were included, the ratio would
have been 0.89%.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
46
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL FIXED INCOME FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.06
Net realized and unrealized gains on investments 0.07
- --------------------------------------------------------------------------------
Total from investment operations 0.13
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.06)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.07
================================================================================
Total return (B) 1.30%(C)
================================================================================
Net assets at end of period (000s) $ 182
================================================================================
Ratio of net expenses to average net assets 1.09%(D)
Ratio of gross expenses to average net assets 1.98%(D)
Ratio of net investment income to average net assets 1.22%(D)
Portfolio turnover rate 125%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
INTERNATIONAL FIXED INCOME FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02
Net realized and unrealized gains on investments 0.06
- --------------------------------------------------------------------------------
Total from investment operations 0.08
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.02)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.06
================================================================================
Total return (B) 0.84%(C)
================================================================================
Net assets at end of period (000s) $ 143
================================================================================
Ratio of net expenses to average net assets 1.84%(D)
Ratio of gross expenses to average net assets 2.71%(D)
Ratio of net investment income to average net assets 0.46%(D)
Portfolio turnover rate 125%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
47
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL FIXED INCOME FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.07
Net realized and unrealized gains on investments 0.07
- --------------------------------------------------------------------------------
Total from investment operations 0.14
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.07)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.07
================================================================================
Total return 1.43%(B)
================================================================================
Net assets at end of period (000s) $ 104
================================================================================
Ratio of net expenses to average net assets 0.84%(C)
Ratio of gross expenses to average net assets 1.76%(C)
Ratio of net investment income to average net assets 1.46%(C)
Portfolio turnover rate 125%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
INTERNATIONAL FIXED INCOME FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.08
Net realized and unrealized gains on investments 0.07
- --------------------------------------------------------------------------------
Total from investment operations 0.15
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.08)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 10.07
================================================================================
Total return 1.51%(B)
================================================================================
Net assets at end of period (000s) $ 6,798
================================================================================
Ratio of net expenses to average net assets 0.69%(C)
Ratio of gross expenses to average net assets 1.60%(C)
Ratio of net investment income to average net assets 1.60%(C)
Portfolio turnover rate 125%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
48
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR PERIOD
MARCH 31, ENDED ENDED YEAR ENDED DECEMBER 31,
2010 SEPT. 30, SEPT. 30, -----------------------------------------
(UNAUDITED) 2009 2008(A) 2007 2006 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of
period $ 7.82 $ 8.56 $ 11.88 $ 10.25 $ 8.62 $ 7.76
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income 0.03 0.08 0.02 0.10 0.01 0.04
Net realized and unrealized gains
(losses) on investments 0.42 (0.82) (3.30) 2.23 1.97 1.09
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.45 (0.74) (3.28) 2.33 1.98 1.13
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income (0.11) 0.00(B) (0.02) (0.10) (0.01) (0.04)
Distributions from net realized
gains -- -- (0.03) (0.60) (0.34) (0.23)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.11) -- (0.05) (0.70) (0.35) (0.27)
- ------------------------------------------------------------------------------------------------------------------------------------
Paid-in capital from redemption fees -- -- 0.01 0.00(B) 0.00(B) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 8.16 $ 7.82 $ 8.56 $ 11.88 $ 10.25 $ 8.62
====================================================================================================================================
Total return (C) 5.82%(D) (8.64%) (27.55%)(D) 22.77% 23.01% 14.57%
====================================================================================================================================
Net assets at end of period (000s) $ 35,784 $ 37,073 $ 25,631 $ 3,829 $ 1,871 $ 800
====================================================================================================================================
Ratio of net expenses to average net
assets 1.35%(E) 1.35% 1.48%(E) 1.50% 1.50% 1.50%
Ratio of gross expenses to average
net assets 1.59%(E) 1.77% 6.42%(E) 8.88% 15.14% 25.80%
Ratio of net investment income to
average net assets 0.66%(E) 1.52% 1.16%(E) 1.32% 0.06% 0.64%
Portfolio turnover rate 26%(E) 37% 35%(E) 91% 67% 75%
(A) Effective after the close of business on December 31, 2007, the Fund changed
its fiscal year end to September 30.
(B) Amount rounds to less than $0.01.
(C) Total returns shown exclude the effect of applicable sales loads.
(D) Not annualized.
(E) Annualized.
See accompanying notes to financial statements.
49
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- -------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR PERIOD
MARCH 31, ENDED ENDED
2010 SEPT. 30, SEPT. 30,
(UNAUDITED) 2009 2008(A)
- -------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 7.77 $ 8.57 $ 8.52
- -------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.00(B) 0.06 0.00(B)
Net realized and unrealized gains (losses) on investments 0.42 (0.86) 0.08
- -------------------------------------------------------------------------------------------------------
Total from investment operations 0.42 (0.80) 0.08
- -------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.01) -- --
Distributions from net realized gains -- -- (0.03)
- -------------------------------------------------------------------------------------------------------
Total distributions (0.01) -- (0.03)
- -------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 8.18 $ 7.77 $ 8.57
=======================================================================================================
Total return(C) 5.46%(D) (9.33%) 0.97%(D)
=======================================================================================================
Net assets at end of period (000s) $ 136 $ 142 $ 3
=======================================================================================================
Ratio of net expenses to average net assets 2.10%(E) 2.10% 0.73%(E)
Ratio of gross expenses to average net assets 10.03%(E) 10.21% 832.55%(E)
Ratio of net investment income (loss) to average net assets (0.07%)(E) 0.95% 0.80%(E)
Portfolio turnover rate 26%(E) 37% 35%(E)
(A) Represents the period from commencement of operations (September 29, 2008)
through September 30, 2008.
(B) Amount rounds to less than $0.01 per share.
(C) Total returns shown exclude the effect of applicable sales loads.
(D) Not annualized.
(E) Annualized.
See accompanying notes to financial statements.
50
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- -------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR PERIOD
MARCH 31, ENDED ENDED
2010 SEPT. 30, SEPT. 30,
(UNAUDITED) 2009 2008(A)
- -------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 7.81 $ 8.54 $ 8.52
- -------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.08 0.07 0.00(B)
Net realized and unrealized gains (losses) on investments 0.37 (0.78) 0.09
- -------------------------------------------------------------------------------------------------------
Total from investment operations 0.45 (0.71) 0.09
- -------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.14) (0.02) (0.04)
Distributions from net realized gains -- -- (0.03)
- -------------------------------------------------------------------------------------------------------
Total distributions (0.14) (0.02) (0.07)
- -------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 8.12 $ 7.81 $ 8.54
=======================================================================================================
Total return 5.80%(C) (8.31%) 1.04%(C)
=======================================================================================================
Net assets at end of period (000s) $ 6 $ 17 $ 3
=======================================================================================================
Ratio of net expenses to average net assets 1.12%(D) 1.10% 0.22%(D)
Ratio of gross expenses to average net assets 129.79%(D) 146.67% 834.03%(D)
Ratio of net investment income to average net assets 0.84%(D) 0.97% 1.32%(D)
Portfolio turnover rate 26%(D) 37% 35%(D)
(A) Represents the period from commencement of operations (September 29, 2008)
through September 30, 2008.
(B) Amount rounds to less than $0.01 per share.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
51
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
LARGE CAP RELATIVE VALUE FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01
Net realized and unrealized gains on investments 1.48
- --------------------------------------------------------------------------------
Total from investment operations 1.49
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.02)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.47
================================================================================
Total return(B) 14.95%(C)
================================================================================
Net assets at end of period (000s) $ 423
================================================================================
Ratio of net expenses to average net assets 1.19%(D)
Ratio of gross expenses to average net assets 2.41%(D)
Ratio of net investment income to average net assets 0.39%(D)
Portfolio turnover rate 1%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
LARGE CAP RELATIVE VALUE FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.03
Net realized and unrealized gains on investments 1.47
- --------------------------------------------------------------------------------
Total from investment operations 1.50
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.05)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.45
================================================================================
Total return(B) 14.50%(C)
================================================================================
Net assets at end of period (000s) $ 243
================================================================================
Ratio of net expenses to average net assets 1.94%(D)
Ratio of gross expenses to average net assets 3.13%(D)
Ratio of net investment loss to average net assets (0.31%)(D)
Portfolio turnover rate 1%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
52
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
LARGE CAP RELATIVE VALUE FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.04
Net realized and unrealized gains on investments 1.47
- --------------------------------------------------------------------------------
Total from investment operations 1.51
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.04)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.47
================================================================================
Total return 15.09%(B)
================================================================================
Net assets at end of period (000s) $ 115
================================================================================
Ratio of net expenses to average net assets 0.94%(C)
Ratio of gross expenses to average net assets 2.17%(C)
Ratio of net investment income to average net assets 0.73%(C)
Portfolio turnover rate 1%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
LARGE CAP RELATIVE VALUE FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.00(B)
Net realized and unrealized gains on investments 1.47
- --------------------------------------------------------------------------------
Total from investment operations 1.47
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.47
================================================================================
Total return 15.17%(C)
================================================================================
Net assets at end of period (000s) $ 3,110
================================================================================
Ratio of net expenses to average net assets 0.79%(D)
Ratio of gross expenses to average net assets 2.12%(D)
Ratio of net investment income to average net assets 0.88%(D)
Portfolio turnover rate 1%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Amount rounds to less than $0.01 per share.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
53
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
MARKET NEUTRAL EQUITY FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Loss from investment operations:
Net investment loss (0.07)
Net realized and unrealized losses on investments (0.27)
- --------------------------------------------------------------------------------
Total from investment operations (0.34)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 9.66
================================================================================
Total return(B) (3.40%)(C)
================================================================================
Net assets at end of period (000s) $ 448
================================================================================
Ratio of net expenses to average net assets 1.74%(D)
Ratio of gross expenses to average net assets 2.43%(D)
Ratio of net investment loss to average net assets (1.29%)(D)
Portfolio turnover rate 198%
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
MARKET NEUTRAL EQUITY FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Loss from investment operations:
Net investment loss (0.08)
Net realized and unrealized losses on investments (0.30)
- --------------------------------------------------------------------------------
Total from investment operations (0.38)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 9.62
================================================================================
Total return (B) (3.70%)(C)
================================================================================
Net assets at end of period (000s) $ 143
================================================================================
Ratio of net expenses to average net assets 2.49%(D)
Ratio of gross expenses to average net assets 3.00%(D)
Ratio of net investment loss to average net assets (2.07%)(D)
Portfolio turnover rate 198%
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
54
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
MARKET NEUTRAL EQUITY FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Loss from investment operations:
Net investment loss (0.05)
Net realized and unrealized losses on investments (0.28)
- --------------------------------------------------------------------------------
Total from investment operations (0.33)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 9.67
================================================================================
Total return (3.30%)(B)
================================================================================
Net assets at end of period (000s) $ 9,485
================================================================================
Ratio of net expenses to average net assets 1.49%(C)
Ratio of gross expenses to average net assets 1.96%(C)
Ratio of net investment loss to average net assets (1.09%)(C)
Portfolio turnover rate 198%
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
55
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
MID CAP FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
MARCH 31, YEAR ENDED SEPTEMBER 30, ENDED
2010 ------------------------ SEPT. 30,
(UNAUDITED) 2009 2008 2007(A)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 11.20 $ 13.07 $ 17.86 $ 18.14
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 0.05 0.04 (0.02) (0.00)(B)
Net realized and unrealized losses on investments 1.60 (1.85) (4.60) (0.28)
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.65 (1.81) (4.62) (0.28)
- -----------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.06) (0.03) -- --
Distributions from net realized gains -- (0.03) (0.17) --
- -----------------------------------------------------------------------------------------------------------------------
Total distributions (0.06) (0.06) (0.17) --
- -----------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 12.79 $ 11.20 $ 13.07 $ 17.86
=======================================================================================================================
Total return (C) 14.79%(D) (13.81%) (26.11%) (1.54%)(D)
=======================================================================================================================
Net assets at end of period (000s) $ 517 $ 452 $ 159 $ 210
=======================================================================================================================
Ratio of net expenses to average net assets 1.17%(E) 1.15% 1.15% 0.94%(E)
Ratio of gross expenses to average net assets 3.43%(E) 3.84% 4.09% 14.21%(E)
Ratio of net investment income (loss) to average net assets 0.81%(E) 0.39% (0.16%) (0.09%)(E)
Portfolio turnover rate 70%(E) 187% 157% 193%
(A) Represents the period from commencement of operations (May 14, 2007) through
September 30, 2007.
(B) Amount rounds to less than $0.01 per share.
(C) Total returns shown exclude the effect of applicable sales loads.
(D) Not annualized.
(E) Annualized.
See accompanying notes to financial statements.
56
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
MID CAP FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- -----------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
MARCH 31, YEAR ENDED SEPTEMBER 30, ENDED
2010 ------------------------ SEPT. 30,
(UNAUDITED) 2009 2008 2007(A)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 11.19 $ 13.12 $ 17.84 $ 18.14
- -----------------------------------------------------------------------------------------------------------------------
Loss from investment operations:
Net investment income (loss) 0.01 (0.03) (0.15) (0.02)
Net realized and unrealized losses on investments 1.54 (1.87) (4.40) (0.28)
- -----------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.55 (1.90) (4.55) (0.30)
- -----------------------------------------------------------------------------------------------------------------------
Distributions from net realized gains 0.00 (0.03) (0.17) --
- -----------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 12.74 $ 11.19 $ 13.12 $ 17.84
=======================================================================================================================
Total return (B) 13.85%(C) (14.47%) (25.74%) (1.65%)(C)
=======================================================================================================================
Net assets at end of period (000s) $ 241 $ 169 $ 30 $ 36
=======================================================================================================================
Ratio of net expenses to average net assets 1.92%(D) 1.90% 1.90% 1.35%(D)
Ratio of gross expenses to average net assets 6.07%(D) 6.99% 31.40% 28.68%(D)
Ratio of net investment income (loss) to average net assets 0.03%(D) (0.38%) (0.91%) (0.51%)(D)
Portfolio turnover rate 70%(D) 187% 157% 193%
(A) Represents the period from commencement of operations (May 14, 2007) through
September 30, 2007.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
57
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
MID CAP FUND -- CLASS Z
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
MARCH 31, YEAR ENDED SEPTEMBER 30, ENDED
2010 ------------------------------------ SEPT. 30,
(UNAUDITED) 2009 2008 2007 2006(A)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 11.18 $ 13.05 $ 17.85 $ 15.26 $ 16.73
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income (loss) 0.05 0.03 (0.08) 0.09 0.01
Net realized and unrealized losses on investments 1.54 (1.84) (4.55) 2.62 (1.48)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.59 (1.81) (4.63) 2.71 (1.47)
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.06) (0.03) -- (0.12) --
Distributions from net realized gains -- (0.03) (0.17) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.06) (0.06) (0.17) (0.12) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 12.71 $ 11.18 $ 13.05 $ 17.85 $ 15.26
====================================================================================================================================
Total return 14.28%(B) (13.83%) (26.18%) 17.84% (8.79%)(B)
====================================================================================================================================
Net assets at end of period (000s) $ 2,066 $ 1,814 $ 3,267 $ 15,203 $ 350
====================================================================================================================================
Ratio of net expenses to average net assets 1.17%(C) 1.15% 1.15% 1.14% 1.16%(C)(D)
Ratio of gross expenses to average net assets 2.18%(C) 2.22% 1.48% 1.25% 1.82%(C)
Ratio of net investment income (loss) to average net
assets 0.81%(C) 0.39% (0.27%) (0.12%) 0.65%(C)
Portfolio turnover rate 70%(C) 187% 157% 193% 323%
(A) Represents the period from commencement of operations (April 24, 2006)
through September 30, 2006.
(B) Not annualized
(C) Annualized.
(D) The ratio of net expenses to average net assets excludes the effect of fees
paid indirectly. If these expense offsets were included, the ratio would
have been 1.15%.
See accompanying notes to financial statements.
58
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
MID CAP FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
2010 ---------------------------------------------------------------------------
(UNAUDITED) 2009 2008 2007 2006 2005(A)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of
period $ 11.25 $ 13.14 $ 17.91 $ 15.28 $ 15.36 $ 13.29
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) 0.07 0.07 0.01 0.11 0.04 (0.01)
Net realized and unrealized losses
on investments 1.55 (1.88) (4.61) 2.65 1.00 2.47
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.62 (1.81) (4.60) 2.76 1.04 2.46
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income (0.09) (0.05) -- (0.13) (0.03) --
Distributions from net realized
gains -- (0.03) (0.17) -- (1.09) (0.39)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions (0.09) (0.08) (0.17) (0.13) (1.12) (0.39)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 12.78 $ 11.25 $ 13.14 $ 17.91 $ 15.28 $ 15.36
====================================================================================================================================
Total return 14.48%(B) (13.68%) (25.92%) 18.13% 7.10% 18.53%(B)
====================================================================================================================================
Net assets at end of period (000s) $ 145,262 $ 168,313 $ 422,356 $ 482,047 $ 87,032 $ 842
====================================================================================================================================
Ratio of net expenses to average net
assets 0.92%(C) 0.90% 0.90% 0.90% 0.91%(D) 1.00%(C)
Ratio of gross expenses to average
net assets 1.08%(C) 1.05% 1.03% 1.06% 1.81% 8.23%(C)
Ratio of net investment income
(loss) to average net assets 1.11%(C) 0.61% 0.09% 0.39% 0.82% (0.02%)(C)
Portfolio turnover rate 70%(C) 187% 157% 193% 323% 120%(C)
(A) For the nine-month period ended September 30, 2005. Effective January 1,
2005, the Fund changed its fiscal year end from December 31 to September 30.
(B) Not annualized.
(C) Annualized.
(D) The ratio of net expenses to average net assets excludes the effect of fees
paid indirectly. If these expense offsets were included, the ratio would
have been 0.90%.
See accompanying notes to financial statements.
59
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
MID CAP VALUE FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.06
Net realized and unrealized gains on investments 1.47
- --------------------------------------------------------------------------------
Total from investment operations 1.53
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.05)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.48
================================================================================
Total return (B) 15.39%(C)
================================================================================
Net assets at end of period (000s) $ 212
================================================================================
Ratio of net expenses to average net assets 1.29%(D)
Ratio of gross expenses to average net assets 2.77%(D)
Ratio of net investment income to average net assets 1.09%(D)
Portfolio turnover rate 29%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
MID CAP VALUE FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02
Net realized and unrealized gains on investments 1.48
- --------------------------------------------------------------------------------
Total from investment operations 1.50
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.04)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.46
================================================================================
Total return (B) 15.01%(C)
================================================================================
Net assets at end of period (000s) $ 119
================================================================================
Ratio of net expenses to average net assets 2.03%(D)
Ratio of gross expenses to average net assets 3.42%(D)
Ratio of net investment income to average net assets 0.28%(D)
Portfolio turnover rate 29%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
60
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
MID CAP VALUE FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.07
Net realized and unrealized gains on investments 1.48
- --------------------------------------------------------------------------------
Total from investment operations 1.55
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.06)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.49
================================================================================
Total return 15.56%(B)
================================================================================
Net assets at end of period (000s) $ 277
================================================================================
Ratio of net expenses to average net assets 1.04%(C)
Ratio of gross expenses to average net assets 2.85%(C)
Ratio of net investment income to average net assets 1.36%(C)
Portfolio turnover rate 29%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
MID CAP VALUE FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.08
Net realized and unrealized gains on investments 1.48
- --------------------------------------------------------------------------------
Total from investment operations 1.56
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.07)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.49
================================================================================
Total return 15.61%(B)
================================================================================
Net assets at end of period (000s) $ 3,123
================================================================================
Ratio of net expenses to average net assets 0.89%(C)
Ratio of gross expenses to average net assets 2.31%(C)
Ratio of net investment income to average net assets 1.42%(C)
Portfolio turnover rate 29%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
61
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
PREMIUM YIELD EQUITY FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR PERIOD
MARCH 31, ENDED ENDED
2010 SEPT. 30, SEPT. 30,
(UNAUDITED) 2009 2008(A)
- --------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 5.93 $ 7.56 $ 10.00
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.08 0.22 0.33
Net realized and unrealized gains (losses) on investments 0.55 (1.64) (2.44)
- --------------------------------------------------------------------------------------------------------
Total from investment operations 0.63 (1.42) (2.11)
- --------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.08) (0.21) (0.32)
Distributions from return of capital -- -- (0.01)
- --------------------------------------------------------------------------------------------------------
Total distributions (0.08) (0.21) (0.33)
- --------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 6.48 $ 5.93 $ 7.56
========================================================================================================
Total return (B) 10.75%(C) (18.40%) (21.48%)(C)
========================================================================================================
Net assets at end of period (000s) $ 21,828 $ 19,879 $ 19,411
========================================================================================================
Ratio of net expenses to average net assets 1.20%(D) 1.20% 1.20%(D)
Ratio of gross expenses to average net assets 1.39%(D) 1.55% 1.53%(D)
Ratio of net investment income to average net assets 2.72%(D) 3.97% 4.68%(D)
Portfolio turnover rate 16%(D) 30% 181%(D)
(A) Represents the period from commencement of operations (December 3, 2007)
through September 30, 2008.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
62
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
PREMIUM YIELD EQUITY FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR PERIOD
MARCH 31, ENDED ENDED
2010 SEPT. 30, SEPT. 30,
(UNAUDITED) 2009 2008(A)
- --------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 5.93 $ 7.56 $ 10.00
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.06 0.10 0.29
Net realized and unrealized gains (losses) on investments 0.55 (1.55) (2.45)
- --------------------------------------------------------------------------------------------------------
Total from investment operations 0.61 (1.45) (2.16)
- --------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.06) (0.18) (0.27)
Distributions from return of capital -- -- (0.01)
- --------------------------------------------------------------------------------------------------------
Total distributions (0.06) (0.18) (0.28)
- --------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 6.48 $ 5.93 $ 7.56
========================================================================================================
Total return (B) 10.31%(C) (18.96%) (21.95%)(C)
========================================================================================================
Net assets at end of period (000s) $ 5,190 $ 3,319 $ 567
========================================================================================================
Ratio of net expenses to average net assets 1.95%(D) 1.95% 1.94%(D)
Ratio of gross expenses to average net assets 2.27%(D) 3.08% 5.31%(D)
Ratio of net investment income to average net assets 1.98%(D) 2.80% 3.93%(D)
Portfolio turnover rate 16%(D) 30% 181%(D)
(A) Represents the period from commencement of operations (December 3, 2007)
through September 30, 2008.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
63
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
PREMIUM YIELD EQUITY FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR PERIOD
MARCH 31, ENDED ENDED
2010 SEPT. 30, SEPT. 30,
(UNAUDITED) 2009 2008(A)
- --------------------------------------------------------------------------------------------------------
Net asset value at beginning of period $ 5.92 $ 7.55 $ 8.30
- --------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income 0.10 0.22 0.04
Net realized and unrealized gains (losses) on investments 0.54 (1.62) (0.73)
- --------------------------------------------------------------------------------------------------------
Total from investment operations 0.64 (1.40) (0.69)
- --------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment income (0.09) (0.23) (0.05)
Distributions from return of capital -- -- (0.01)
- --------------------------------------------------------------------------------------------------------
Total distributions (0.09) (0.23) (0.06)
- --------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 6.47 $ 5.92 $ 7.55
========================================================================================================
Total return 10.91%(B) (18.22%) (8.37%)(B)
========================================================================================================
Net assets at end of period (000s) $ 7,515 $ 551 $ 2
========================================================================================================
Ratio of net expenses to average net assets 0.95%(C) 0.95% 0.90%(C)
Ratio of gross expenses to average net assets 1.40%(C) 13.70% 453.70%(C)
Ratio of net investment income to average net assets 3.06%(C) 2.97% 3.16%(C)
Portfolio turnover rate 16%(C) 30% 181%(C)
(A) Represents the period from commencement of operations (August 12, 2008)
through September 30, 2008.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
64
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
SANDS CAPITAL SELECT GROWTH FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
2010 --------------------------------------------------------------------------
(UNAUDITED) 2009 2008 2007 2006 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of
period $ 7.34 $ 6.86 $ 9.15 $ 7.60 $ 7.81 $ 6.80
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (0.02) (0.03) (0.06) (0.05) (0.06) (0.06)
Net realized and unrealized gains
(losses) on investments 1.04 0.51 (2.23) 1.60 (0.15) 1.07
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.02 0.48 (2.29) 1.55 (0.21) 1.01
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 8.36 $ 7.34 $ 6.86 $ 9.15 $ 7.60 $ 7.81
====================================================================================================================================
Total return 13.90%(A) 7.00% (25.03%) 20.39% (2.69%) 14.85%
====================================================================================================================================
Net assets at end of period (000s) $ 96,079 $ 82,918 $ 130,920 $ 213,672 $ 182,001 $ 81,976
====================================================================================================================================
Ratio of net expenses to average
net assets 1.20%(B) 0.98% 1.16% 1.03% 1.10% 1.11%
Ratio of gross expenses to average
net assets 1.27%(B) 1.05% 1.19% 1.03% 1.23% 1.19%
Ratio of net investment loss to
average net assets (0.39%)(B) (0.48%) (0.59%) (0.67%) (0.74%) (0.62%)
Portfolio turnover rate 9%(B) 50% 39% 24% 24% 24%
(A) Not annualized.
(B) Annualized.
SANDS CAPITAL SELECT GROWTH FUND -- CLASS Z
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
2010 --------------------------------------------------------------------------
(UNAUDITED) 2009 2008 2007 2006 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of
period $ 7.24 $ 6.79 $ 9.08 $ 7.57 $ 7.80 $ 6.80
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment loss (0.02) (0.04) (0.06) (0.09) (0.05) (0.03)
Net realized and unrealized gains
(losses) on investments 1.03 0.49 (2.23) 1.60 (0.18) 1.03
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.01 0.45 (2.29) 1.51 (0.23) 1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 8.25 $ 7.24 $ 6.79 $ 9.08 $ 7.57 $ 7.80
====================================================================================================================================
Total return 13.95%(A) 6.63% (25.22%) 19.95% (2.95%) 14.71%
====================================================================================================================================
Net assets at end of period (000s) $ 442,948 $ 333,200 $ 363,955 $ 380,025 $ 365,390 $ 162,999
====================================================================================================================================
Ratio of net expenses to average net
assets 1.45%(B) 1.23% 1.41% 1.29% 1.35% 1.36%
Ratio of gross expenses to average
net assets 1.52%(B) 1.32% 1.43% 1.35% 1.48% 1.44%
Ratio of net investment loss to
average net assets (0.65%)(B) (0.74%) (0.85%) (0.92%) (0.99%) (0.84%)
Portfolio turnover rate 9%(B) 50% 39% 24% 24% 24%
(A) Not annualized.
(B) Annualized.
See accompanying notes to financial statements.
65
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
SHORT DURATION FIXED INCOME FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED PERIOD
MARCH 31, ENDED
2010 SEPT. 30,
(UNAUDITED) 2009(A)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 9.95 $ 9.79
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.16 0.13
Net realized and unrealized gains on investments 0.00(B) 0.16
- --------------------------------------------------------------------------------
Total from investment operations 0.16 0.29
- --------------------------------------------------------------------------------
Dividends from net investment income (0.17) (0.13)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 9.94 $ 9.95
================================================================================
Total return 1.65%(C) 3.02%(C)
================================================================================
Net assets at end of period (000's) $ 596 $ 592
================================================================================
Ratio of net expenses to average net assets 0.49%(D) 0.48%(D)
Ratio of gross expenses to average net assets 3.86%(D) 1.49%(D)
Ratio of net investment income to average net assets 3.34%(D) 3.03%(D)
Portfolio turnover rate 20%(D) 79%
(A) Represents the period from commencement of operations (May 4, 2009) through
September 30, 2009.
(B) Amount rounds to less than $0.01 per share.
(C) Not annualized.
(D) Annualized.
SHORT DURATION FIXED INCOME FUND -- CLASS Z
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
2010 --------------------------------------------------------------------------
(UNAUDITED) 2009 2008 2007 2006 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of
period $ 9.94 $ 9.59 $ 9.81 $ 9.76 $ 9.87 $ 10.04
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income 0.15 0.32 0.45 0.45 0.38 0.31
Net realized and unrealized gains
(losses) on investments 0.01 0.35 (0.22) 0.05 (0.07) (0.10)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.16 0.67 0.23 0.50 0.31 0.21
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends from net investment income (0.16) (0.32) (0.45) (0.45) (0.42) (0.38)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 9.94 $ 9.94 $ 9.59 $ 9.81 $ 9.76 $ 9.87
====================================================================================================================================
Total return 1.63%(A) 7.13% 2.36% 5.19% 3.23% 2.12%
====================================================================================================================================
Net assets at end of period (000's) $ 41,574 $ 43,749 $ 46,989 $ 59,192 $ 76,090 $ 112,833
====================================================================================================================================
Ratio of net expenses to average net
assets 0.74%(B) 0.74% 0.74% 0.74% 0.72% 0.61%
Ratio of gross expenses to average
net assets 1.00%(B) 0.96% 0.94% 0.82% 0.74% 0.66%
Ratio of net investment income to
average net assets 3.06%(B) 3.24% 4.60% 4.62% 3.97% 3.18%
Portfolio turnover rate 20%(B) 79% 25% 21% 10% 46%
(A) Not annualized.
(B) Annualized.
See accompanying notes to financial statements.
66
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
SMALL CAP CORE FUND -- CLASS A
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.01
Net realized and unrealized gains on investments 1.44
- --------------------------------------------------------------------------------
Total from investment operations 1.45
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.45
================================================================================
Total return (B) 14.50%(C)
================================================================================
Net assets at end of period (000s) $ 37,825
================================================================================
Ratio of net expenses to average net assets 1.34%(D)
Ratio of gross expenses to average net assets 1.43%(D)
Ratio of net investment income to average net assets 0.83%(D)
Portfolio turnover rate 5%(D)
(A) The Fund commenced operations on September 30, 2009.
(B) Total returns shown exclude the effect of applicable sales loads.
(C) Not annualized.
(D) Annualized.
SMALL CAP CORE FUND -- CLASS C
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.00(B)
Net realized and unrealized gains on investments 1.42
- --------------------------------------------------------------------------------
Total from investment operations 1.42
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.42
================================================================================
Total return (C) 14.20%(D)
================================================================================
Net assets at end of period (000s) $ 2,270
================================================================================
Ratio of net expenses to average net assets 2.09%(E)
Ratio of gross expenses to average net assets 2.45%(E)
Ratio of net investment loss to average net assets (0.22%)(E)
Portfolio turnover rate 5%(E)
(A) The Fund commenced operations on September 30, 2009.
(B) Amount rounds to less than $0.01 per share.
(C) Total returns shown exclude the effect of applicable sales loads.
(D) Not annualized.
(E) Annualized.
See accompanying notes to financial statements.
67
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
SMALL CAP CORE FUND -- CLASS Y
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.02
Net realized and unrealized gains on investments 1.46
- --------------------------------------------------------------------------------
Total from investment operations 1.48
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.48
================================================================================
Total return 14.80%(B)
================================================================================
Net assets at end of period (000s) $ 19,608
================================================================================
Ratio of net expenses to average net assets 1.09%(C)
Ratio of gross expenses to average net assets 1.23%(C)
Ratio of net investment income to average net assets 0.85%(C)
Portfolio turnover rate 5%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
SMALL CAP CORE FUND -- INSTITUTIONAL CLASS
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31,
2010(A)
(UNAUDITED)
- --------------------------------------------------------------------------------
Net asset value at beginning of period $ 10.00
- --------------------------------------------------------------------------------
Income from investment operations:
Net investment income 0.03
Net realized and unrealized gains on investments 1.45
- --------------------------------------------------------------------------------
Total from investment operations 1.48
- --------------------------------------------------------------------------------
Less distributions from net investment income (0.02)
- --------------------------------------------------------------------------------
Net asset value at end of period $ 11.46
================================================================================
Total return 14.84%(B)
================================================================================
Net assets at end of period (000s) $ 7,647
================================================================================
Ratio of net expenses to average net assets 0.94%(C)
Ratio of gross expenses to average net assets 1.40%(C)
Ratio of net investment income to average net assets 0.76%(C)
Portfolio turnover rate 5%(C)
(A) The Fund commenced operations on September 30, 2009.
(B) Not annualized.
(C) Annualized.
See accompanying notes to financial statements.
68
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
SMALL CAP VALUE OPPORTUNITIES FUND -- CLASS Z
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
2010 --------------------------------------------------------------------------
(UNAUDITED) 2009 2008 2007 2006 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of
period $ 13.26 $ 15.45 $ 20.48 $ 18.94 $ 18.35 $ 16.21
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income (loss) (0.00)(A) 0.02 (0.00)(A) (0.02) (0.08) 0.02
Net realized and unrealized gains
(losses) on investments 1.50 (2.17) (3.22) 2.05 0.96 3.76
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 1.50 (2.15) (3.22) 2.03 0.88 3.78
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions:
Dividends from net investment
income -- (0.02) (0.02) -- (0.02) --
Distributions from net realized
gains -- (0.02) (1.79) (0.49) (0.27) (1.64)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (0.04) (1.81) (0.49) (0.29) (1.64)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 14.76 $ 13.26 $ 15.45 $ 20.48 $ 18.94 $ 18.35
====================================================================================================================================
Total return 11.31(C) (13.90%) (16.81%) 10.77% 4.84% 24.32%
====================================================================================================================================
Net assets at end of period (000s) $ 76,823 $ 84,046 $ 132,113 $ 204,027 $ 249,431 $ 74,235
====================================================================================================================================
Ratio of net expenses to average net
assets 1.50%(D) 1.50% 1.50% 1.58% 1.63%(B) 1.46%
Ratio of gross expenses to average
net assets 1.80%(D) 1.72% 1.74% 1.71% 1.65% 2.04%
Ratio of net investment income
(loss) to average net assets (0.04%)(D) 0.20% (0.03%) (0.01%) (0.43%) 0.29%
Portfolio turnover rate 79.93%(D) 215% 222% 127% 99% 193%
(A) Amount rounds to less than $.0.01 per share.
(B) The ratio of net expenses to average net assets excludes the effect of fees
paid indirectly. If these expense offsets were included, the ratio would
have been 1.62%.
(C) Not annualized.
(D) Annualized.
See accompanying notes to financial statements.
69
- --------------------------------------------------------------------------------
Financial Highlights (Continued)
- --------------------------------------------------------------------------------
ULTRA SHORT DURATION FIXED INCOME FUND -- CLASS Z
PER SHARE DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- ------------------------------------------------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
MARCH 31, YEAR ENDED SEPTEMBER 30,
2010 --------------------------------------------------------------------------
(UNAUDITED) 2009 2008 2007 2006 2005
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at beginning of
period $ 9.66 $ 9.74 $ 10.08 $ 10.06 $ 10.08 $ 10.12
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment
operations:
Net investment income 0.10 0.32 0.47 0.53 0.44 0.30
Net realized and unrealized gains
(losses) on investments 0.06 (0.07) (0.34) 0.01 (0.02) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
Total from investment operations 0.16 0.25 0.13 0.54 0.42 0.27
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions from net
investment income (0.12) (0.33) (0.47) (0.52) (0.44) (0.31)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value at end of period $ 9.70 $ 9.66 $ 9.74 $ 10.08 $ 10.06 $ 10.08
====================================================================================================================================
Total return 1.66%(A) 2.60% 1.26% 5.48% 4.28% 2.67%
====================================================================================================================================
Net assets at end of period (000's) $ 143,556 $ 108,552 $ 143,837 $ 146,045 $ 173,716 $ 305,222
====================================================================================================================================
Ratio of net expenses to average net
assets 0.69%(B) 0.69% 0.69% 0.69% 0.69% 0.59%
Ratio of gross expenses to average
net assets 0.84%(B) 0.85% 0.82% 0.75% 0.69% 0.62%
Ratio of net investment income to
average net assets 2.03%(B) 3.41% 4.72% 5.25% 4.30% 2.93%
Portfolio turnover rate 56%(B) 15% 56% 26% 38% 68%
(A) Not annualized.
(B) Annualized.
See accompanying notes to financial statements.
70
- --------------------------------------------------------------------------------
Notes to Financial Statements
March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
1. ORGANIZATION
The Touchstone Funds Group Trust (the Trust), is registered under the Investment
Company Act of 1940, as amended, (the Act), as an open-end management investment
company. The Trust consists of the following twenty mutual funds, individually,
a Fund, and collectively, the Funds:
Touchstone Capital Appreciation Fund
Touchstone Core Plus Fixed Income Fund
Touchstone Emerging Markets Equity Fund
Touchstone Focused Equity Fund
Touchstone Global Equity Fund
Touchstone Global Real Estate Fund
Touchstone Healthcare and Biotechnology Fund
Touchstone Intermediate Fixed Income Fund
Touchstone International Fixed Income
Touchstone International Growth Fund
Touchstone Large Cap Relative Value Fund
Touchstone Market Neutral Equity Fund
Touchstone Mid Cap Fund
Touchstone Mid Cap Value Fund
Touchstone Premium Yield Equity Fund
Touchstone Sands Capital Select Growth Fund
Touchstone Short Duration Fixed Income Fund
Touchstone Small Cap Core Fund
Touchstone Small Cap Value Opportunities Fund
Touchstone Ultra Short Duration Fixed Income Fund
Each Fund is registered as a diversified portfolio of the Trust with the
exception of the Focused Equity Fund, Global Real Estate Fund, Healthcare and
Biotechnology Fund, International Fixed Income Fund, International Growth Fund,
Sands Capital Select Growth Fund and Small Cap Core Fund.
The Funds are registered to offer different classes of shares: Class A shares,
Class C shares, Class Y shares, Class Z shares, and Institutional Class shares.
The assets of each Fund are segregated, and a shareholder's interest is limited
to the Fund in which shares are held. The Funds' prospectus provides a
description of each Fund's investment objectives, policies, and strategies along
with information on the classes of shares currently being offered.
Effective December 18, 2009, the Touchstone Long/Short Equity Fund changed its
name to the Touchstone Market Neutral Equity Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the Funds' significant accounting policies:
SECURITY VALUATION -- The Funds' portfolio securities are valued as of the close
of the regular session of trading on the New York Stock Exchange (currently 4:00
p.m., Eastern time). Portfolio securities traded on stock exchanges are valued
at the last sale price and portfolio securities quoted by NASDAQ are valued at
the NASDAQ Official Closing Price (NOCP). Securities not traded on a particular
day, or for which the last sale price is not readily available, are valued at
their last broker-quoted bid prices as obtained from one or more of the major
market makers for such securities by an independent pricing service. Debt
securities for which market quotations are readily available are valued at their
most recent bid prices as obtained from one or more of the major market makers
for such securities by an independent pricing service. Money market instruments
and other debt securities with a remaining maturity of less than 60 days are
valued at amortized cost, which approximates market value. Securities for which
market quotations or the NOCP are not readily available are valued based on fair
value as determined by or under the direction of the Board of Trustees. Shares
of open-end mutual funds in which the Funds invest are valued at their
respective net asset values as reported by the underlying funds. The prices for
foreign securities are reported in local currency and converted to U.S. dollars
using currency exchange rates.
71
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
For securities that principally trade on a foreign market or exchange, a
significant gap in time can exist between the time of a particular security's
last trade and the time at which a Fund calculates its net asset value. The
closing prices of such securities may no longer reflect their market value at
the time the Fund calculates its net asset value if an event that could
materially affect the value of those securities (a "Significant Event") has
occurred between the time of the security's last close and the time that the
Fund calculates its net asset value. A Significant Event may relate to a single
issuer or to an entire market sector. If the advisor or sub-advisor of a Fund
becomes aware of a Significant Event that has occurred with respect to a
security or group of securities after the closing of the exchange or market on
which the security or securities principally trade, but before the time at which
the Fund calculates its net asset value, it may request that a Fair Value
Committee Meeting be called. In addition, the Funds' administrator or
sub-administrator monitors price movements among certain selected indices,
securities and/or baskets of securities that may be an indicator that the
closing prices received earlier from foreign exchanges or markets may not
reflect market value at the time the Fund calculates its net asset value. If
price movements in a monitored index or security exceed levels established by
the Advisor, the Sub-Administrator notifies the Advisor or Sub-Advisor for any
Fund holding the relevant securities that such limits have been exceeded. In
such event, the Advisor makes the determination whether a Fair Value Committee
meeting should be called based on the information provided.
The Funds have adopted FASB ASC 820 "Fair Value Measurements". This standard
establishes a single authoritative definition of fair value sets out a framework
for measuring fair value and requires additional disclosures about fair value
measurements. Fair Value Measurements applies to fair value measurements already
required or permitted by existing standards. The changes to current generally
accepted accounting principles (GAAP) from the application of this Statement
relate to the definition of fair value, the methods used to measure fair value,
and the expanded disclosures about fair value measurements.
Various inputs are used in determining the value of the Funds investments. These
inputs are summarized in the three broad levels listed below:
o Level 1 - quoted prices in active markets for identical securities
o Level 2 - other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
etc.)
o Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities. For
example, money market securities are valued using amortized cost, in accordance
with rules under the Investment Company Act of 1940. Generally, amortized cost
approximates the current fair value of a security, but since the value is not
obtained from a quoted price in an active market, such securities are reflected
as Level 2.
The aggregate value by input level, as of March 31, 2010, for each Fund's
investments, is included in each Fund's Portfolio of Investments, which also
includes a breakdown of the Fund's investments by geographic/industry
concentration. The Funds did not hold any Level 3 categorized securities during
the six months ended or at March 31, 2010.
72
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSLATION -- The books and records of the Funds are
maintained in U.S. dollars and translated into U.S. dollars on the following
basis:
1) market value of investment securities, assets and liabilities at the
current rate of exchange on the valuation date; and
2) 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 investments in
equity securities that is due to changes in the foreign exchange rates from that
which is due to changes in market prices of equity securities.
FORWARD FOREIGN CURRENCY CONTRACTS -- A forward foreign currency contract is an
agreement between two parties to buy and sell a specific currency at a price
that is set on the date of the contract. The forward contract calls for delivery
of the currency on a future date that is specified in the contract. Risks
related to the use of forwards include the possible failure of counterparties to
meet the terms of the forward agreement, the failure of the counterparties to
timely post collateral, the risk that currency movements will not occur thereby
reducing the fund's total return, and the potential for losses in excess of the
fund's initial investment.
The market value of a forward foreign currency contract fluctuates with changes
in foreign currency exchange rates. Forward foreign currency contracts are
marked to market daily and the change in value is recorded by a Fund as an
unrealized gain or loss. Realized gains or losses, equal to the difference
between the value of the contract at the time it was opened and the value at the
time it was closed, are recorded upon delivery or receipt of the currency.
During the period ended March 31, 2010 the Fund used forward foreign currency
contracts to enhance potential gains, hedge against anticipated currency
exchange rates, maintain diversity and liquidity of the portfolio and adjust
exposure to foreign currencies.
NEW ACCOUNTING PRONOUNCEMENTS -- In January 2010, the Financial Accounting
Standards Board ("FASB") issued new guidance as an amendment to fair value
measurements and disclosures. The new guidance adds new requirements for
disclosure about transfers into and out of level 1 and level 2 fair value
measurements and separate disclosures about purchases, sales, issuances, and
settlements relating to level 3 measurements. The guidance also clarifies
existing fair value disclosures about the level of disaggregation and about
inputs and valuation techniques in level 2 and level 3 fair value measurements.
The amendment is effective for interim and annual reporting periods beginning
after December 15, 2009, except for Level 3 reconciliation disclosures which are
effective for interim and annual periods beginning after December 15, 2010. The
Funds do not expect the implications of this guidance to have a material impact
on its financial statements.
73
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES:
The following table sets forth the fair value of the Trust's derivative
contracts by primary risk exposure as of March 31, 2010:
FAIR VALUE OF DERIVATIVE INVESTMENTS
AS OF MARCH 31, 2010
- ----------------------------------------------------------------------------------------------------------------
ASSET DERIVATIVES LIABILITIES DERIVATIVES
- ----------------------------------------------------------------------------------------------------------------
DERIVATIVES NOT
ACCOUNTED FOR STATEMENT OF STATEMENT OF
AS HEDGING ASSETS AND ASSETS AND
INSTRUMENTS UNDER LIABILITIES UNREALIZED LIABILITIES UNREALIZED
ASC 815 LOCATION FUND APPRECIATION LOCATION FUND DEPRECIATION
- ----------------------------------------------------------------------------------------------------------------
Unrealized Unrealized
appreciation depreciation
on foreign Core PLUS Fixed on foreign Core PLUS Fixed
Forward foreign currency Income Fund $ 8,410 currency Income Fund $14,562
currency exchange exchange International Fixed exchange International Fixed
contracts contracts Income Fund $102,048 contracts Income Fund $ 1,040
THE EFFECT OF DERIVATIVE INSTRUMENTS ON THE STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED MARCH 31, 2010
- ----------------------------------------------------------------------------------------------------------------
DERIVATIVES NOT CHANGE IN
ACCOUNTED FOR LOCATION OF GAIN OR UNREALIZED
AS HEDGING (LOSS) ON DERIVATIVES REALIZED APPRECIATION
INSTRUMENTS UNDER ON THE STATEMENTS GAIN OR (LOSS) (DEPRECIATION)
ASC 815 OF OPERATIONS FUND ON DERIVATIVES ON DERIVATIVES
- ----------------------------------------------------------------------------------------------------------------
Net realized gains (losses)
from foreign currency
transactions, Net change Core PLUS Fixed
Forward foreign in unrealized appreciation Income Fund $ 3,209 $ (6,152)
currency exchange (depreciation) on foreign International Fixed
contracts currency transactions Income Fund $320,892 $101,008
PORTFOLIO SECURITIES LOANED -- Each Fund may lend its portfolio securities.
Lending portfolio securities exposes a Fund to the risk that the borrower may
fail to return the loaned securities or may not be able to provide additional
collateral or that the Fund may experience delays in recovery of the loaned
securities or loss of rights in the collateral if the borrower fails
financially. To minimize these risks, the borrower must agree to maintain cash
collateral with the Funds' custodian in an amount at least equal to the market
value of the loaned securities. The cash collateral is reinvested by the Funds'
custodian into an approval investment vehicles. As of March 31, 2010, the
following Funds loaned securities and received collateral as follows:
FAIR VALUE OF VALUE OF
SECURITIES COLLATERAL
LOANED RECEIVED
- --------------------------------------------------------------------------------
Healthcare and Biotechnology Fund $ 4,206,975 $ 4,347,725
International Growth Fund $ 9,820,531 $ 10,052,687
Mid Cap Fund $ 33,717,033 $ 34,657,844
Sands Capital Select Growth Fund $ 5,176,572 $ 5,289,928
Small Cap Value Opportunities Fund $ 14,433,930 $ 14,865,099
74
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
All collateral received as cash and securities is received, held and
administered by the Funds' custodian for the benefit of the Funds in the
applicable custody account or other account established for the purpose of
holding collateral.
Funds participating in securities lending receive compensation in the form of
fees, or retain a portion of interest or dividends on the investment of any cash
received as collateral. The Funds also continue to receive interest or dividends
on the securities loaned. The loans are secured by collateral valued at least
equal, at all times, to the fair value of the securities loaned plus accrued
interest. Unrealized gain or loss on the fair value of the securities loaned
that may occur during the term of the loan is recognized by the Funds. The Funds
have the right under the lending agreement to recover the securities from the
borrower on demand.
DELAYED DELIVERY TRANSACTIONS -- The Funds may purchase or sell securities on a
when-issued or delayed delivery basis. These transactions involve a commitment
by the Funds to purchase or sell securities for a predetermined price or yield,
with payment and delivery taking place beyond the customary settlement period.
When delayed delivery purchases are outstanding, the Funds will set aside liquid
assets in an amount sufficient to meet the purchase price. When purchasing a
security on a delayed delivery basis, the Funds assume the rights and risks of
ownership of the security, including the risk of price and yield fluctuations,
and take such fluctuations into account when determining net asset value. The
Funds may dispose of or renegotiate a delayed delivery transaction after it is
entered into, and may sell when-issued securities before they are delivered,
which may result in a capital gain or loss. When the Funds have sold a security
on a delayed delivery basis, the Funds do not participate in future gains and
losses with respect to the security.
REPURCHASE AGREEMENTS -- Repurchase agreements, which are collateralized by U.S.
Government obligations, are valued at cost, which together with accrued interest
approximates market value. At the time each Fund enters into a repurchase
agreement, the seller agrees that the value of the underlying collateral
securities, including accrued interest, will at all times be equal to or exceed
the face amount of the repurchase agreement.
SHARE VALUATION -- The net asset value per share of each class of shares of each
Fund is calculated daily by dividing the total value of a Fund's assets
attributable to that class, less liabilities attributable to that class, by the
number of outstanding shares of that class.
The maximum offering price per share of Class A shares of the Funds is equal to
the net asset value per share plus a sales load equal to 6.10% of the net asset
value (or 5.75% of the offering price). The maximum offering price per share of
Class C, Class Y, Class Z, and Institutional Class shares of the Funds is equal
to the net asset value per share.
The redemption price per share of each class of shares of the Funds is equal to
the net asset value per share. However, Class C shares of the Funds are subject
to a contingent deferred sales load of 1.00% of the original purchase price if
redeemed within a one-year period from the date of purchase.
INVESTMENT INCOME -- Interest income is accrued as earned and includes, where
applicable, the pro-rata amortization of premium or accretion of discount.
Dividend income is recorded on the ex-dividend date.
DISTRIBUTIONS TO SHAREHOLDERS -- The Capital Appreciation Fund, Emerging Markets
Equity Fund, Focused Equity Fund, Global Equity Fund, Healthcare and
Biotechnology Fund, International Growth Fund, Market Neutral Equity Fund, Mid
Cap Fund, Small Cap Core Fund and Small Cap Value Opportunities Fund declare and
distribute net investment income, if any, annually, as a dividend to
shareholders. The Global Real Estate Fund, Large Cap Relative Value Fund, Mid
Cap Value Fund and Sands Capital Select Growth Fund declare and distribute net
investment income, if any, quarterly, as a dividend to shareholders. The Core
Plus Fixed Income Fund, International Fixed Income Fund and Premium Yield Equity
Fund declare and distribute net investment income, if any, monthly as a dividend
to shareholders. The Intermediate Fixed Income Fund, Short Duration Fixed Income
Fund, and Ultra Short Duration Fixed Income Fund declare net investment income
daily and distribute it monthly, as a dividend to shareholders. Any net realized
capital gains on sales of securities for all Funds are distributed to
shareholders at least annually.
75
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
ALLOCATIONS -- Investment income earned, realized capital gains and losses, and
unrealized appreciation and depreciation for the Funds are allocated daily to
each class of shares based upon its proportionate share of total net assets of
the Fund. Class specific expenses are charged directly to the class incurring
the expense. Common expenses, which are not attributable to a specific class,
are allocated daily to each class of shares based upon its proportionate share
of total net assets of the Fund. Expenses not directly billed to a Fund are
allocated proportionally among all Funds daily in relation to net assets of each
Fund or another reasonable measure.
SECURITY TRANSACTIONS -- Security transactions are accounted for on the trade
date. Securities sold are determined on a specific identification basis.
ESTIMATES -- The preparation of financial statements in conformity with U.S.
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts
of income and expenses during the reporting period. Actual results could differ
from those estimates.
3. INVESTMENT TRANSACTIONS
Investment transactions (excluding short-term investments and U.S. Government
securities) were as follows for the period ended March 31, 2010:
CAPITAL
APPRECIATION CORE PLUS FIXED EMERGING MARKETS
FUND INCOME FUND EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
Purchases of investment securities $ 5,081,823 $ 11,498,509 $ 14,955,349
- ----------------------------------------------------------------------------------------------------------------------
Proceeds from sales and maturities $ 485,844 $ 1,596,285 $ 437,610
- ----------------------------------------------------------------------------------------------------------------------
FOCUSED EQUITY GLOBAL EQUITY GLOBAL REAL ESTATE
FUND* FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
Purchases of investment securities $ 2,161,284 $ 4,233,933 $ 4,996,974
- ----------------------------------------------------------------------------------------------------------------------
Proceeds from sales and maturities $ 130,630 $ 1,125,933 $ 1,150,819
- ----------------------------------------------------------------------------------------------------------------------
HEALTHCARE AND INTERMEDIATE
BIOTECHNOLOGY FIXED INCOME INTERNATIONAL FIXED
FUND FUND INCOME
- ----------------------------------------------------------------------------------------------------------------------
Purchases of investment securities $ 28,642,997 $ 10,246,828 $ 14,284,508
- ----------------------------------------------------------------------------------------------------------------------
Proceeds from sales and maturities $ 37,379,110 $ 8,499,572 $ 7,899,968
- ----------------------------------------------------------------------------------------------------------------------
INTERNATIONAL LARGE CAP
GROWTH RELATIVE VALUE MARKET NEUTRAL
FUND FUND EQUITY FUND
- ----------------------------------------------------------------------------------------------------------------------
Purchases of investment securities $ 9,348,142 $ 3,392,702
- ----------------------------------------------------------------------------------------------------------------------
Proceeds from sales and maturities $ 11,664,764 $ 44,163
- ----------------------------------------------------------------------------------------------------------------------
PREMIUM
MID CAP MID CAP VALUE YIELD EQUITY
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
Purchases of investment securities $ 106,286,242 $ 4,150,746 $ 12,518,431
- ----------------------------------------------------------------------------------------------------------------------
Proceeds from sales and maturities $ 150,383,194 $ 960,183 $ 4,336,303
- ----------------------------------------------------------------------------------------------------------------------
76
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
SANDS CAPITAL SHORT DURATION
SELECT FIXED
GROWTH INCOME SMALL CAP CORE
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
Purchases of investment securities $ 99,816,481 $ 7,194,687 $ 62,828,851
- ----------------------------------------------------------------------------------------------------------------------
Proceeds from sales and maturities $ 43,987,283 $ 2,765,863 $ 1,234,882
- ----------------------------------------------------------------------------------------------------------------------
SMALL CAP ULTRA
VALUE SHORT DURATION
OPPORTUNITIES FIXED INCOME
FUND FUND
- ----------------------------------------------------------------------------------------------------------------------
Purchases of investment securities $ 60,101,421 $ 20,369,966
- ----------------------------------------------------------------------------------------------------------------------
Proceeds from sales and maturities $ 77,468,321 $ 16,130,271
- ----------------------------------------------------------------------------------------------------------------------
* Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010
4. TRANSACTIONS WITH AFFILIATES
Certain officers of the Trust are also officers of the Advisor (Touchstone
Advisors, Inc.), the Underwriter (Touchstone Securities, Inc.) and/or JPMorgan
Chase Bank, N.A. ("JPMorgan" and the Sub-Administrator and Transfer Agent to the
Funds). The Advisor and Underwriter are each wholly owned, indirect subsidiaries
of The Western and Southern Life Insurance Company (Western-Southern).
As of March 31, 2010, the following Funds were owned by Western-Southern and
subsidiaries:
Capital Appreciation Fund 60.4%
- --------------------------------------------------------------------------------
Global Equity Fund 88.3%
- --------------------------------------------------------------------------------
Global Real Estate Fund 77.5%
- --------------------------------------------------------------------------------
International Fixed Income Fund 98.3%
- --------------------------------------------------------------------------------
International Growth Fund 54.4%
- --------------------------------------------------------------------------------
Large Cap Relative Value Fund 85.8%
- --------------------------------------------------------------------------------
Market Neutral Equity Fund 95.8%
- --------------------------------------------------------------------------------
Mid Cap Value Fund 93.0%
- --------------------------------------------------------------------------------
Premium Yield Equity Fund 51.5%
- --------------------------------------------------------------------------------
MANAGEMENT & EXPENSE LIMITATIONS AGREEMENTS
The Advisor provides general investment supervisory services for the Funds,
under terms of an Advisory Agreement. Under the Advisory Agreement, the Funds
pay the Advisor a fee, which is computed and accrued daily and paid monthly, at
an annual rate based on average daily net assets as shown in the table below.
Capital Appreciation Fund 0.75% on the first $25 million
0.70% on assets greater than $25 million to $250 million
0.65% of such assets in excess of $250 million
- -----------------------------------------------------------------------------------------------------------
Core Plus Fixed Income Fund 0.45% on the first $100 million
0.425% on assets greater than $100 million to $250 million
0.40% of such assets in excess of $250 million
- -----------------------------------------------------------------------------------------------------------
Emerging Markets Equity Fund 1.10% on the first $200 million
1.05% on assets greater than $200 million to $400 million
0.95% of such assets in excess of $400 million
- -----------------------------------------------------------------------------------------------------------
Focused Equity Fund 0.70% on the first $100 million
0.65% on assets greater than $100 million to $500 million
0.60% of such assets in excess of $500 million
- -----------------------------------------------------------------------------------------------------------
77
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
Global Equity Fund 0.85% on the first $50 million
0.80% on assets greater than $50 million to $500 million
0.75% of such assets in excess of $500 million
- -----------------------------------------------------------------------------------------------------------
Global Real Estate Fund 0.80%
- -----------------------------------------------------------------------------------------------------------
Healthcare and Biotechnology Fund 1.00%
- -----------------------------------------------------------------------------------------------------------
Intermediate Fixed Income Fund 0.40%
- -----------------------------------------------------------------------------------------------------------
International Fixed Income Fund 0.55% on the first $100 million
0.50% on assets greater than $100 million to $250 million
0.45% of such assets in excess of $250 million
- -----------------------------------------------------------------------------------------------------------
International Growth Fund 0.90%
- -----------------------------------------------------------------------------------------------------------
Large Cap Relative Value Fund 0.70% on the first $100 million
0.65% of such assets in excess of $100 million
- -----------------------------------------------------------------------------------------------------------
Market Neutral Equity Fund 1.30%
- -----------------------------------------------------------------------------------------------------------
Mid Cap Fund 0.80%
- -----------------------------------------------------------------------------------------------------------
Mid Cap Value Fund 0.85% on the first $100 million
0.80% on assets greater than $100 million to $400 million
0.75% of such assets in excess of $400 million
- -----------------------------------------------------------------------------------------------------------
Premium Yield Equity Fund 0.70% on the first $100 million
0.65% of such assets in excess of $100 million
- -----------------------------------------------------------------------------------------------------------
Sands Capital Select Growth Fund 0.85%
- -----------------------------------------------------------------------------------------------------------
Short Duration Fixed Income Fund 0.25%
- -----------------------------------------------------------------------------------------------------------
Small Cap Core Fund 0.85
- -----------------------------------------------------------------------------------------------------------
Small Cap Value Opportunities Fund 0.95%
- -----------------------------------------------------------------------------------------------------------
Ultra Short Duration Fixed Income Fund 0.25%
- -----------------------------------------------------------------------------------------------------------
The Advisor entered into an Expense Limitation Agreement to contractually limit
operating expenses of the Funds. The maximum operating expense limit in any year
with respect to the Funds is based on a percentage of the average daily net
assets of the Funds. The Advisor has agreed to waive advisory fees and reimburse
expenses in order to maintain expense limitations for the Funds as follows
through January 27, 2011:
CLASS A CLASS C CLASS Y CLASS Z INSTITUTIONAL CLASS
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Appreciation Fund 1.19% 1.94% 0.94% -- 0.79%
Core Plus Fixed Income Fund 0.95% 1.70% 0.70% -- 0.50%
Emerging Markets Equity Fund 1.74% 2.49% 1.49% -- 1.34%
Focused Equity Fund 1.20% 1.95% 0.95% -- 0.80%
Global Equity Fund 1.34% 2.09% 1.09% -- 0.94%
Global Real Estate Fund 1.39% 2.14% 1.14% -- 0.99%
Healthcare and Biotechnology Fund 1.55% 2.30% -- -- --
Intermediate Fixed Income Fund -- -- -- -- 0.40%
International Fixed Income Fund 1.09% 1.84% 0.84% -- 0.69%
International Growth Fund 1.35% 2.10% 1.10% -- --
Large Cap Relative Value Fund 1.19% 1.94% 0.94% -- 0.79%
Mid Cap Fund 1.21% 1.96% 0.96% 1.21% --
Mid Cap Value Fund 1.29% 2.04% 1.04% -- 0.89%
Premium Yield Equity Fund 1.20% 1.95% 0.95% -- --
Short Duration Fixed Income Fund -- -- 0.49% 0.74% --
Small Cap Core Fund 1.34% 2.09% 1.09% -- 0.94%
Small Cap Value Opportunities Fund -- -- -- 1.50% --
Ultra Short Duration Fixed Income Fund -- -- -- 0.69% --
78
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
For Market Neutral Equity Fund, effective April 1, 2010, the Advisor has agreed
to waive advisory fees and reimburse expenses in order to maintain expense
limitations to 1.50% for Class A shares, 2.25% for Class C shares and 1.25% for
Class Y shares. These expense limitations will remain in effect until April 1,
2011. Prior to April 1, 2010, the expense limitations were 1.75% for Class A
shares, 2.50% for Class C and 1.50% for Class Y.
The Advisor has agreed to limit certain Funds other operating expenses ("Other
Expenses") to the following levels. These expense limitations will remain in
effect until at least January 27, 2011.
CLASS Y CLASS Z
- --------------------------------------------------------------------------------
Sands Capital Select Growth Fund 0.25% 0.25%
- --------------------------------------------------------------------------------
In addition to the base advisory fee shown above, for the Sands Capital Select
Growth Fund, a performance fee adjustment will be added to or subtracted from
the base advisory fee depending on the performance of the Fund in relation to
the investment performance of the Fund's benchmark index, for the preceding
twelve month period, as follows:
BASE ANNUAL
ADVISORY ADJUSTMENT BENCHMARK BENCHMARK
FEES RATE INDEX THRESHOLD
- ------------------------------------------------------------------------------------
Russell 1000
Sands Capital Select Growth Fund 0.85% +/-0.15% Growth Index +/-2.50%
For the six months ended March 31, 2010, the Advisor's base fee was decreased by
$282,266 as a result of the performance fee adjustment.
During the period ended March 31, 2010, the Advisor waived investment advisory
fees, administration fees and/or reimbursed expenses of the Funds as follows:
INVESTMENT OTHER OPERATING
ADVISORY ADMINISTRATION EXPENSES
FEES WAIVED FEES WAIVED REIMBURSED
- -----------------------------------------------------------------------------------------------
Capital Appreciation Fund $ 16,359 $ 4,362 $ 3,921
Core Plus Fixed Income Fund $ 15,689 $ 6,973 $ 10,310
Emerging Markets Equity Fund $ 8,040 $ 8,878 $ 6,198
Focused Equity Fund* $ 3,153 $ 901 $ 10,578
Global Equity Fund $ 13,462 $ 3,167 $ 14,205
Global Real Estate Fund $ 12,523 $ 3,131 $ 8,320
Healthcare and Biotechnology Fund $ 11,753 $ 33,110 $ 53,634
Intermediate Fixed Income Fund $ 51,114 $ 106,056 $ --
International Fixed Income Fund $ 19,371 $ 7,044 $ 5,613
International Growth Fund $ -- $ 36,408 $ 16,861
Large Cap Relative Value Fund $ 11,896 $ 3,399 $ 7,081
Market Neutral Equity Fund $ 13,386 $ 10,091 $ 1,191
Mid Cap Fund $ -- $ 140,201 $ --
Mid Cap Value Fund $ 13,890 $ 3,268 $ 6,714
Premium Yield Equity Fund $ -- $ 28,091 $ 5,757
Sands Capital Select Growth Fund $ -- $ 171,321 $ --
Short Duration Fixed Income Fund $ 22,805 $ 43,315 $ --
Small Cap Core Fund $ -- $ 20,142 $ 1,092
Small Cap Value Opportunities Fund $ 39,717 $ 76,989 $ --
Ultra Short Duration Fixed Income Fund $ -- $ 92,270 $ --
* Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
79
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
The Advisor has entered into investment sub-advisory agreements with the
following parties:
FARR, MILLER & WASHINGTON LLC FORT WASHINGTON INVESTMENT ADVISORS, INC.
Capital Appreciation Fund Focused Equity Fund
Ultra Short Duration Fixed Income Fund
AGF INVESTMENTS AMERICA INC.
Emerging Markets Equity Fund BRADFORD & MARZEC LLC
Core Plus Fixed Income Fund
BEDLAM ASSET MANAGEMENT PLC
Global Equity Fund CORNERSTONE REAL ESTATE ADVISERS LLC
Global Real Estate Fund
TURNER INVESTMENT PARTNERS, INC.
Healthcare and Biotechnology Fund JKMILNE ASSET MANAGEMENT
Mid Cap Fund Intermediate Fixed Income Fund
Small Cap Value Opportunities Fund
NAVELLIER & ASSOCIATES, INC.
AUGUSTUS ASSET MANAGERS LTD. International Growth Fund
International Fixed Income Fund
EARNEST PARTNERS LLC
ARONSON + JOHNSON + ORITZ Large Cap Relative Value Fund
Market Neutral Equity Fund
LEE MUNDER CAPITAL GROUP LLC
MILLER/HOWARD INVESTMENTS, INC. Mid Cap Value Fund
Premium Yield Equity Fund
SANDS CAPITAL MANAGEMENT, LLC
LONGFELLOW INVESTMENT MANAGEMENT COMPANY Sands Capital Select Growth Fund
Short Duration Fixed Income Fund
THE LONDON COMPANY
Small Cap Core Fund
The Advisor, not the Funds, pays sub-advisory fees to each Sub-Advisor.
ADMINISTRATION AGREEMENT
The Advisor entered into an Administration and Accounting Services Agreement
with the Trust, whereby the Advisor is responsible for supplying executive and
regulatory compliance services, supervises the preparation of tax returns, and
coordinates the preparation of reports to shareholders and reports to, and
filings with, the Securities and Exchange Commission and state securities
authorities, materials for meetings of the Board of Trustees, calculating the
daily net asset value per share and maintaining the financial books and records
of each Fund. For its services, the Advisor receives an annual fee of 0.20% of
the aggregate average daily net assets of the Trust, Touchstone Investment Trust
(excluding Institutional Money Market Fund), Touchstone Strategic Trust, and
Touchstone Tax-Free Trust up to and including $6 billion; 0.16% of the next $4
billion of aggregate average daily net assets; and 0.12% of the aggregate
average daily net assets of all such assets in excess of $10 billion. The fee is
allocated among the Funds on the basis of relative daily net assets.
The Advisor has engaged JPMorgan as the Sub-Administrator to the Trust. JPMorgan
provides administrative and accounting services to the Trust and is compensated
directly by the Advisor, not the Trust.
TRANSFER AGENT AGREEMENT
Under the terms of the Transfer Agent Agreement between the Trust and JPMorgan,
JPMorgan maintains the records of each shareholder's account, answers
shareholders' inquiries concerning their accounts, processes purchases and
redemptions of each Fund's shares, acts as dividend and distribution disbursing
agent and performs other shareholder service functions. For these services,
JPMorgan receives a monthly fee per shareholder account from each Fund. In
addition, each Fund pays JPMorgan out-of-pocket expenses including, but not
limited to, postage and supplies.
80
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
For the period ended March 31, 2010, the following Funds reimbursed the Advisor
for amounts paid to third parties that provide sub-transfer agency and other
administrative services to the Funds. These amounts are included in transfer
agent fees on the Statements of Operations:
AMOUNT
- --------------------------------------------------------------------------------
Capital Appreciation Fund $ 42
Emerging Markets Equity Fund $ 48
Focused Equity Fund* $ 8
Healthcare and Biotechnology Fund $ 21,788
Intermediate Fixed Income Fund $ 503
International Growth Fund $ 1,355
Mid Cap Fund $ 4,539
Premium Yield Equity Fund $ 968
Sands Capital Select Growth Fund $ 82,580
Short Duration Fixed Income Fund $ 15,048
Small Cap Core Fund $ 12
Small Cap Value Opportunities Fund $ 42,384
Ultra Short Duration Fixed Income Fund $ 38,395
* Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
PLANS OF DISTRIBUTION
The Trust has adopted a Distribution and Shareholder Services Plan for Class A
shares of the Capital Appreciation Fund, Core Plus Fixed Income Fund, Emerging
Markets Equity Fund, Focused Equity Fund, Global Equity Fund, Global Real Estate
Fund, Healthcare and Biotechnology Fund, International Fixed Income Fund,
International Growth Fund, Large Cap Relative Value Fund, Market Neutral Equity
Fund, Mid Cap Fund, Mid Cap Value Fund, Premium Yield Equity Fund, and Small Cap
Core Fund (Class A Plan) under which each Fund may directly or indirectly bear
expenses relating to the distribution of Class A shares of the Trust and for
providing shareholder services to Class A shares. The Fund will incur and/or
reimburse expenses for distribution and shareholder service of Class A shares at
an annual rate not to exceed 0.25% of the average daily net assets of Class A
shares.
The Trust has adopted a Distribution and Shareholder Services Plan for Class C
shares of the Capital Appreciation Fund, Core Plus Fixed Income Fund, Emerging
Markets Equity Fund, Focused Equity Fund, Global Equity Fund, Global Real Estate
Fund, Healthcare and Biotechnology Fund, International Fixed Income Fund,
International Growth Fund, Large Cap Relative Value Fund, Market Neutral Equity
Fund, Mid Cap Fund, Mid Cap Value Fund, Premium Yield Equity Fund, and Small Cap
Core Fund (Class C Plan) under which each Fund may directly or indirectly bear
expenses relating to the distribution of Class C shares of the Trust and for
providing shareholder services to Class C shares. The Fund will incur and/or
reimburse expenses for distribution and shareholder services of Class C shares
at an annual rate not to exceed 1.00% and 0.25%, respectively, of the average
daily net assets of Class C shares. The combination of these fees is not to
exceed 1.00% of the average daily net assets of Class C shares.
The Trust has adopted a Shareholder Services Plan for Class Z shares of the Mid
Cap Fund, Sands Capital Select Growth Fund, Short Duration Fixed Income Fund,
Small Cap Value Opportunities Fund, and Ultra Short Duration Fixed Income Fund
(Class Z Plan) under which each Fund may directly or indirectly bear expenses
for providing shareholder services. The Fund will incur and/or reimburse expense
for shareholder service of Class Z shares at an annual rate not to exceed 0.25%
of the average daily net assets of Class Z shares.
81
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
UNDERWRITING AGREEMENT
The Underwriter is the Funds' principal underwriter and, as such, acts as
exclusive agent for distribution of the Funds' shares. Under the terms of the
Underwriting Agreement between the Trust and Underwriter, the Underwriter earned
the following from underwriting and broker commissions on the sale of shares of
the following Funds for the period ended March 31, 2010:
AMOUNT
- --------------------------------------------------------------------------------
Capital Appreciation Fund $ 1,300
Core Plus Fixed Income Fund $ 1,650
Emerging Markets Equity Fund $ 6,604
Focused Equity Fund $ 1,369
Global Equity Fund $ 281
Global Real Estate Fund $ 326
Healthcare and Biotechnology Fund $ 2,378
International Fixed Income Fund $ 325
International Growth Fund $ 824
Large Cap Relative Value Fund $ 919
Market Neutral Equity Fund $ 1,759
Mid Cap Fund $ 81
Mid Cap Value Fund $ 404
Premium Yield Equity Fund $ 2,265
Small Cap Core Fund $ 12,651
* Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
In addition, the Underwriter collected contingent deferred sales charges on the
redemption of Class C shares of the following Funds for the six months ended
March 31, 2010:
AMOUNT
- --------------------------------------------------------------------------------
Capital Appreciation Fund $ 25
Core Plus Fixed Income Fund $ 26
Emerging Markets Equity Fund $ 334
Global Equity Fund $ 25
Global Real Estate Fund $ 25
Healthcare and Biotechnology Fund $ 3
International Fixed Income Fund $ 25
Large Cap Relative Value Fund $ 25
Market Neutral Equity Fund $ 25
Mid Cap Value Fund $ 25
Premium Yield Equity Fund $ 661
Small Cap Core Fund $ 25
COMPLIANCE SERVICES AGREEMENT
Under the terms of the Compliance Services Agreement between the Trust and
JPMorgan, JPMorgan provides certain compliance services to the Trust and
provides administrative support services to the Funds' Compliance Program and
Chief Compliance Officer. For these services, JPMorgan receives a quarterly fee
from each Fund.
AFFILIATED INVESTMENTS
Each Fund may invest in the Touchstone Institutional Money Market Fund, subject
to compliance with several conditions set forth in an order received by the
Trust from the Securities and Exchange Commission. To the extent that the other
Touchstone Funds are invested in the Touchstone Institutional Money Market Fund,
the Advisor and Administrator will be paid additional fees from the Touchstone
Institutional Money Market Fund that will not be waived or reimbursed.
82
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
A summary of each Fund's investment, as applicable, in the Touchstone
Institutional Money Market Fund for the period ended March 31, 2010, is as
follows:
SHARE ACTIVITY
-----------------------------------------------------------
BALANCE BALANCE VALUE
09/30/09 PURCHASES SALES 03/31/10 DIVIDENDS 03/31/10
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Appreciation Fund -- 4,951,231 (4,516,989) 434,242 $ 905 $ 434,242
- ------------------------------------------------------------------------------------------------------------------------------------
Core Plus Fixed Income Fund -- 14,103,650 (12,614,623) 1,489,027 $ 1,972 $ 1,489,027
- ------------------------------------------------------------------------------------------------------------------------------------
Emerging Markets Equity Fund -- 14,444,633 (13,548,705) 895,928 $ 1,366 $ 895,928
- ------------------------------------------------------------------------------------------------------------------------------------
Focused Equity Fund* -- 2,131,668 (2,056,835) 74,833 $ 97 $ 74,833
- ------------------------------------------------------------------------------------------------------------------------------------
Global Equity Fund -- 3,969,830 (3,856,469) 113,361 $ 588 $ 113,361
- ------------------------------------------------------------------------------------------------------------------------------------
Global Real Estate Fund -- 4,663,187 (4,488,752) 174,435 $ 295 $ 174,435
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare and Biotechnology Fund -- 15,405,538 (15,384,553) 20,985 $ 1,413 $ 20,985
- ------------------------------------------------------------------------------------------------------------------------------------
Intermediate Fixed Income Fund 6,229,472 15,699,956 (19,690,718) 2,238,710 $ 8,540 $ 2,238,710
- ------------------------------------------------------------------------------------------------------------------------------------
International Fixed Income -- 7,878,074 (7,280,257) 597,817 $ 1,203 $ 597,817
- ------------------------------------------------------------------------------------------------------------------------------------
International Growth Fund 2,195,557 4,422,769 (6,332,795) 285,531 $ 1,209 $ 285,531
- ------------------------------------------------------------------------------------------------------------------------------------
Large Cap Relative Value Fund -- 3,453,576 (3,386,817) 66,759 $ 415 $ 66,759
- ------------------------------------------------------------------------------------------------------------------------------------
Market Neutral Equity Fund -- 15,629,111 (15,155,479) 473,632 $ 1,498 $ 473,632
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Fund 1,005,405 45,534,843 (43,237,486) 3,302,762 $ 3,334 $ 3,302,762
- ------------------------------------------------------------------------------------------------------------------------------------
Mid Cap Value Fund -- 3,498,027 (3,455,073) 42,954 $ 270 $ 42,954
- ------------------------------------------------------------------------------------------------------------------------------------
Premium Yield Equity Fund 399,062 8,286,459 (7,492,909) 1,192,612 $ 2,427 $ 1,192,612
- ------------------------------------------------------------------------------------------------------------------------------------
Sands Capital Select Growth Fund 19,564,025 86,524,085 (91,105,284) 14,982,826 $ 16,791 $ 14,982,826
- ------------------------------------------------------------------------------------------------------------------------------------
Short Duration Fixed Income Fund 403,523 8,402,851 (8,605,357) 201,017 $ 1,027 $ 201,017
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Core Fund -- 53,037,706 (37,768,501) 15,269,205 $ 2,166 $ 15,269,205
- ------------------------------------------------------------------------------------------------------------------------------------
Small Cap Value Opportunities Fund 913,866 18,006,207 (17,005,414) 1,914,659 $ 2,128 $ 1,914,659
- ------------------------------------------------------------------------------------------------------------------------------------
Ultra Short Duration Fixed Income Fund 9,126,534 63,942,674 (69,564,895) 3,504,313 $ 14,759 $ 3,504,313
- ------------------------------------------------------------------------------------------------------------------------------------
* Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
83
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
5. CAPITAL SHARE TRANSACTIONS
Proceeds and payments on capital shares as shown in the Statements of Changes in
Net Assets are the result of the following capital share transactions for the
periods shown:
EMERGING
CAPITAL CORE PLUS MARKETS FOCUSED
APPRECIATION FIXED INCOME EQUITY EQUITY
FUND FUND FUND FUND(A)
- -----------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS PERIOD
ENDED ENDED ENDED ENDED
MARCH 31, MARCH 31, MARCH 31, MARCH 31,
2010 2010 2010 2010
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
- -----------------------------------------------------------------------------------------------------------
CLASS A
Shares issued 174,304 256,636 262,419 18,651
Shares reinvested -- 1,084 -- --
Shares redeemed (1,237) (9,883) (19,274) --
- -----------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 173,067 247,837 243,145 18,651
Shares outstanding, beginning of period -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 173,067 247,837 243,145 18,651
===========================================================================================================
CLASS C
Shares issued 25,343 138,270 185,504 10,249
Shares reinvested -- 685 -- --
Shares redeemed (250) (8,240) (3,093) --
- -----------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 25,093 130,715 182,411 10,249
Shares outstanding, beginning of period -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 25,093 130,715 182,411 10,249
===========================================================================================================
CLASS Y
Shares issued 16,888 67,049 102,880 10,000
Shares reinvested 12 404 -- --
Shares redeemed (4,490) (10,850) (9,682) --
- -----------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 12,410 56,603 93,198 10,000
Shares outstanding, beginning of period -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 12,410 56,603 93,198 10,000
===========================================================================================================
INSTITUTIONAL CLASS
Shares issued 270,250 972,266 962,579 166,432
Shares reinvested 708 6,506 -- --
Shares redeemed (250) (251) (250) --
- -----------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 270,708 978,521 962,329 166,432
Shares outstanding, beginning of period -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 270,708 978,521 962,329 166,432
===========================================================================================================
(A) Represents the period from commencement of operations (December 31, 2009)
through March 31, 2010.
84
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
GLOBAL GLOBAL HEALTHCARE AND
EQUITY REAL ESTATE BIOTECHNOLOGY
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED YEAR
MARCH 31, MARCH 31, MARCH 31, ENDED
2010 2010 2010 SEPT. 30,
(UNAUDITED) (UNAUDITED) (UNAUDITED) 2009
- ----------------------------------------------------------------------------------------------------------
CLASS A
Shares issued 48,845 96,422 193,507 1,168,902
Shares reinvested -- 146 -- --
Shares redeemed (309) (872) (784,569) (2,530,036)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 48,536 95,696 (591,062) (1,361,134)
Shares outstanding, beginning of period -- -- 2,675,621 4,036,755
- ----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 48,536 95,696 2,084,559 2,675,621
==========================================================================================================
CLASS C
Shares issued 10,250 10,673 4,683 49,549
Shares reinvested -- 108 -- --
Shares redeemed (250) (250) (57,335) (167,013)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 10,000 10,531 (52,652) (117,464)
Shares outstanding, beginning of period -- -- 280,351 397,815
- ----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 10,000 10,531 227,699 280,351
==========================================================================================================
CLASS Y
Shares issued 11,462 10,887 -- --
Shares reinvested -- 130 -- --
Shares redeemed (250) (250) -- --
- ----------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 11,212 10,767 -- --
Shares outstanding, beginning of period -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 11,212 10,767 -- --
==========================================================================================================
INSTITUTIONAL CLASS
Shares issued 270,250 271,692 -- --
Shares reinvested 64 3,486 -- --
Shares redeemed (250) (250) -- --
- ----------------------------------------------------------------------------------------------------------
Net increase in shares outstanding 270,064 274,928 -- --
Shares outstanding, beginning of period -- -- -- --
- ----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 270,064 274,928 -- --
==========================================================================================================
85
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
INTERMEDIATE INTERNATIONAL
FIXED INCOME FIXED INCOME
FUND FUND
- ------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED
MARCH 31, ENDED MARCH 31,
2010 SEPT. 30, 2010
(UNAUDITED) 2009 (UNAUDITED)
- ------------------------------------------------------------------------------------------
CLASS A
Shares issued -- -- 18,976
Shares reinvested -- -- 69
Shares redeemed -- -- (962)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding -- -- 18,083
Shares outstanding, beginning of period -- -- --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period -- -- 18,083
==========================================================================================
CLASS C
Shares issued -- -- 14,469
Shares reinvested -- -- 24
Shares redeemed -- -- (250)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding -- -- 14,243
Shares outstanding, beginning of period -- -- --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period -- -- 14,243
==========================================================================================
CLASS Y
Shares issued -- -- 11,511
Shares reinvested -- -- 67
Shares redeemed -- -- (1,251)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding -- -- 10,327
Shares outstanding, beginning of period -- -- --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period -- -- 10,327
==========================================================================================
INSTITUTIONAL CLASS
Shares issued 655,719 11,553,991 671,132
Shares reinvested 3,703 41,342 4,482
Shares redeemed (172,948) (1,442,295) (251)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 486,474 10,153,038 675,363
Shares outstanding, beginning of period 11,880,237 1,727,199 --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 12,366,711 11,880,237 675,363
==========================================================================================
86
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
INTERNATIONAL LARE CAP
GROWTH RELATIVE VALUE
FUND FUND
- ------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED
MARCH 31, ENDED MARCH 31,
2010 SEPT. 30, 2010
(UNAUDITED) 2009 (UNAUDITED)
- ------------------------------------------------------------------------------------------
CLASS A
Shares issued 130,678 2,018,789 37,227
Shares reinvested 43,485 152 22
Shares redeemed (528,893) (274,463) (367)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding (354,730) 1,744,478 36,882
Shares outstanding, beginning of period 4,739,554 2,995,076 --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 4,384,824 4,739,554 36,882
==========================================================================================
CLASS C
Shares issued 11,157 26,149 21,698
Shares redeemed (12,733) (8,203) (520)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding (1,576) 17,946 21,178
Shares outstanding, beginning of period 18,240 294 --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 16,664 18,240 21,178
==========================================================================================
CLASS Y
Shares issued 18 1,898 10,267
Shares reinvested 4 -- 17
Shares redeemed (1,460) -- (250)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding (1,438) 1,898 10,034
Shares outstanding, beginning of period 2,194 296 --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 756 2,194 10,034
==========================================================================================
INSTITUTIONAL CLASS
Shares issued -- -- 270,789
Shares reinvested -- -- 568
Shares redeemed -- -- (250)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding -- -- 271,107
Shares outstanding, beginning of period -- -- --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period -- -- 271,107
==========================================================================================
87
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
MARKET
NEUTRAL
EQUITY MID CAP
FUND FUND
- ------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR
MARCH 31, MARCH 31, ENDED
2010 2010 SEPT. 30,
(UNAUDITED) (UNAUDITED) 2009
- ------------------------------------------------------------------------------------------
CLASS A
Shares issued 77,427 8,468 36,964
Shares reinvested -- 168 132
Shares redeemed (31,110) (8,575) (8,835)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 46,317 61 28,261
Shares outstanding, beginning of period -- 40,383 12,122
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 46,317 40,444 40,383
==========================================================================================
CLASS C
Shares issued 15,110 3,905 18,403
Shares reinvested -- -- 21
Shares redeemed (250) (82) (5,595)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 14,860 3,823 12,829
Shares outstanding, beginning of period -- 15,119 2,290
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 14,860 18,942 15,119
==========================================================================================
CLASS Y (A)
Shares issued 980,748 277,837 6,376,276
Shares reinvested -- 5,228 14,265
Shares redeemed (250) (3,875,268) (23,577,005)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 980,498 (3,592,203) (17,186,464)
Shares outstanding, beginning of period -- 14,961,272 32,147,736
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 980,498 11,369,069 14,961,272
==========================================================================================
CLASS Z
Shares issued -- 39,316 96,295
Shares reinvested -- 815 1,206
Shares redeemed -- (39,891) (185,516)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding -- 240 (88,015)
Shares outstanding, beginning of period -- 162,319 250,334
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period -- 162,559 162,319
==========================================================================================
(A) Effective January 28, 2010, Institutional Class shares of the Mid Cap Fund
were changed to Class Y shares.
88
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
PREMIUM
MID CAP VALUE YIELD EQUITY
FUND FUND
- ------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED PERIOD
MARCH 31, MARCH 31, ENDED
2010 2010 SEPT. 30,
(UNAUDITED) (UNAUDITED) 2009
- ------------------------------------------------------------------------------------------
CLASS A
Shares issued 21,205 225,444 756,905
Shares reinvested 69 35,247 108,456
Shares redeemed (2,822) (244,807) (81,899)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 18,452 15,884 783,462
Shares outstanding, beginning of period -- 3,351,980 2,568,518
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 18,452 3,367,864 3,351,980
==========================================================================================
CLASS C
Shares issued 10,575 264,885 489,270
Shares reinvested 35 3,551 4,467
Shares redeemed (250) (27,521) (9,098)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 10,360 240,915 484,639
Shares outstanding, beginning of period -- 559,610 74,971
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 10,360 800,525 559,610
==========================================================================================
CLASS Y
Shares issued 24,268 1,101,787 92,780
Shares reinvested 86 5,927 757
Shares redeemed (250) (39,548) (744)
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 24,104 1,068,166 92,793
Shares outstanding, beginning of period -- 93,096 303
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 24,104 1,161,262 93,096
==========================================================================================
INSTITUTIONAL CLASS
Shares issued 270,250 -- --
Shares reinvested 1,659 -- --
Shares redeemed (250) -- --
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 271,659 -- --
Shares outstanding, beginning of period -- -- --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 271,659 -- --
==========================================================================================
89
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
SANDS CAPITAL SHORT DURATION
SELECT GROWTH FIXED INCOME
FUND FUND
- ----------------------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED YEAR
MARCH 31, ENDED MARCH 31, ENDED
2010 SEPT. 30, 2010 SEPT. 30,
(UNAUDITED) 2009 (UNAUDITED) 2009
- ----------------------------------------------------------------------------------------------------------
CLASS Y
Shares issued 2,355,709 4,413,386 45,093 59,186
Shares reinvested -- -- 834 323
Shares redeemed (2,164,747) (12,186,105) (45,471) (6)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 190,962 (7,772,719) 456 59,503
Shares outstanding, beginning of period 11,300,167 19,072,886 59,503 --
- ----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 11,491,129 11,300,167 59,959 59,503
==========================================================================================================
CLASS Z
Shares issued 15,078,372 30,043,839 229,945 493,806
Shares reinvested -- -- 53,909 148,522
Shares redeemed (7,363,681) (37,614,532) (500,093) (1,141,404)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 7,714,691 (7,570,693) (216,239) (499,076)
Shares outstanding, beginning of period 45,996,065 53,566,758 4,400,531 4,899,607
- ----------------------------------------------------------------------------------------------------------
Shares outstanding, end of period 53,710,756 45,996,065 4,184,292 4,400,531
==========================================================================================================
90
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
SMALL CAP SMALL CAP
CORE VALUE OPPORTUNITIES
FUND FUND
- ------------------------------------------------------------------------------------------
SIX MONTHS SIX MONTHS
ENDED ENDED YEAR
MARCH 31, MARCH 31, ENDED
2010 2010 SEPT. 30,
(UNAUDITED) (UNAUDITED) 2009
- ------------------------------------------------------------------------------------------
CLASS A
Shares issued 3,370,391 -- --
Shares reinvested -- -- --
Shares redeemed (67,067) -- --
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 3,303,324 -- --
Shares outstanding, beginning of period -- -- --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 3,303,324 -- --
==========================================================================================
CLASS C
Shares issued 198,926 -- --
Shares reinvested -- -- --
Shares redeemed (250) -- --
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 198,676 -- --
Shares outstanding, beginning of period -- -- --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 198,676 -- --
==========================================================================================
CLASS Y
Shares issued 1,783,080 -- --
Shares reinvested -- -- --
Shares redeemed (75,202) -- --
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 1,707,878 -- --
Shares outstanding, beginning of period -- -- --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 1,707,878 -- --
==========================================================================================
CLASS Z
Shares issued -- 363,409 1,203,675
Shares reinvested -- -- 24,829
Shares redeemed -- (1,496,412) (3,440,717)
- ------------------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding -- (1,133,003) (2,212,213)
Shares outstanding, beginning of period -- 6,338,261 8,550,474
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period -- 5,205,258 6,338,261
==========================================================================================
INSTITUTIONAL CLASS
Shares issued 666,826 -- --
Shares reinvested 894 -- --
Shares redeemed (250) -- --
- ------------------------------------------------------------------------------------------
Net increase in shares outstanding 667,470 -- --
Shares outstanding, beginning of period -- -- --
- ------------------------------------------------------------------------------------------
Shares outstanding, end of period 667,470 -- --
==========================================================================================
91
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
ULTRA SHORT DURATION
FIXED INCOME
FUND
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR
MARCH 31, ENDED
2010 SEPT. 30,
(UNAUDITED) 2009
- --------------------------------------------------------------------------------
CLASS Z
Shares issued 5,934,646 4,070,270
Shares reinvested 120,829 409,229
Shares redeemed (2,484,740) (8,006,654)
- --------------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 3,570,735 (3,527,155)
Shares outstanding, beginning of period 11,236,157 14,763,312
- --------------------------------------------------------------------------------
Shares outstanding, end of period 14,806,892 11,236,157
================================================================================
6. FEDERAL TAX INFORMATION
FEDERAL INCOME TAX -- It is each Fund's policy to continue to comply with the
special provisions of the Internal Revenue Code applicable to regulated
investment companies. As provided therein, in any fiscal year in which a Fund so
qualifies and distributes at least 90% of its investment company taxable income,
the Fund (but not the shareholders) will be relieved of federal income tax on
the income distributed. Accordingly, no provision for income taxes has been
made.
In order to avoid imposition of the excise tax applicable to regulated
investment companies, it is also each Fund's intention to declare and pay as
dividends in each calendar year at least 98% of its investment company taxable
income (earned during the calendar year) and 98% of its net realized capital
gains (earned during the twelve months ending October 31) plus undistributed
amounts from prior years.
The tax character of distributions paid for the periods ended September 30, 2009
and 2008 was as follows:
HEALTHCARE AND INTERMEDIATE
BIOTECHNOLOGY FIXED INCOME INTERNATIONAL GROWTH
FUND FUND FUND
- ----------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR PERIOD YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30,
2009 2008 2009 2008 2009 2008*
- ----------------------------------------------------------------------------------------------------------
From ordinary income $ -- $ 1,403,820 $ 855,228 $ 864,148 $ 973 $ 52,616
From long-term capital gains -- 3,983,663 -- -- -- 88,762
From tax return of capital -- 1,060,240 -- -- -- --
- ----------------------------------------------------------------------------------------------------------
$ -- $ 6,447,723 $ 855,228 $ 864,148 $ 973 $ 141,378
- ----------------------------------------------------------------------------------------------------------
MID CAP PREMIUM YIELD SANDS CAPITAL SELECT
FUND EQUITY FUND GROWTH FUND
- ----------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR PERIOD YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30, DEC. 31,
2009 2008 2009 2008 2009 2008
- ----------------------------------------------------------------------------------------------------------
From ordinary income $ 1,033,371 $ 4,685,264 $ 583,029 $ 811,372 $ -- $ --
From long-term capital gains 551,095 80,180 -- -- -- --
From tax return of capital -- -- 77,806 34,532 -- --
- ----------------------------------------------------------------------------------------------------------
$ 1,584,466 $ 4,765,444 $ 660,835 $ 845,904 $ -- $ --
- ----------------------------------------------------------------------------------------------------------
92
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
SHORT DURATION FIXED SMALL CAP VALUE ULTRA SHORT DURATION
INCOME FUND OPPORTUNITIES FUND FIXED INCOME FUND
- ----------------------------------------------------------------------------------------------------------
YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30, SEPT. 30,
2009 2008 2009 2008 2009 2008
- ----------------------------------------------------------------------------------------------------------
From ordinary income $ 1,479,571 $ 2,449,791 $ 105,644 $ 4,124,200 $ 4,095,134 $ 7,561,408
From long-term capital gains -- -- 135,276 12,400,740 -- --
From tax return of capital -- -- 49,414 -- -- --
- ----------------------------------------------------------------------------------------------------------
$ 1,479,571 $ 2,449,791 $ 290,334 $16,524,940 $ 4,095,134 $ 7,561,408
- ----------------------------------------------------------------------------------------------------------
* Represents the period from January 1, 2008 through September 30, 2008.
The following information is computed on a tax basis for each item as of
September 30, 2009:
HEALTHCARE AND INTERMEDIATE INTERNATIONAL PREMIUM
BIOTECHNOLOGY FIXED INCOME GROWTH MID CAP YIELD EQUITY
FUND FUND FUND FUND FUND
- -------------------------------------------------------------------------------------------------------------------------
Tax cost of portfolio investments $ 41,550,086 $ 102,080,496 $ 35,810,259 $ 196,423,348 $ 24,325,881
=========================================================================================================================
Gross unrealized appreciation 5,722,596 858,542 4,434,243 26,704,858 2,137,270
Gross unrealized depreciation (772,039) (45,401) (2,031,206) (3,730,730) (2,753,020)
- -------------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) 4,950,557 813,141 2,403,037 22,974,128 (615,750)
Post-October losses (8,034,786) (1,892,689) (2,970,277) (93,618,654) (5,804,331)
Capital loss carryforward (6,462,446) (87,072) (328,042) (120,759,656) (3,084,301)
Undistributed ordinary income -- 228,723 385,646 224,960 --
Other temporary differences 681,101 657,269 -- 178,304 (4,667)
- -------------------------------------------------------------------------------------------------------------------------
Accumulated (deficit) $ (8,865,574) $ (280,628) $ (509,636) $(191,000,918) $ (9,509,049)
=========================================================================================================================
SMALL CAP ULTRA
SANDS CAPITAL SHORT DURATION VALUE SHORT DURATION
SELECT GROWTH FIXED INCOME OPPORTUNITIES FIXED INCOME
FUND FUND FUND FUND
- ---------------------------------------------------------------------------------------------------------
Tax cost of portfolio investments $ 387,152,411 $ 43,103,081 $ 88,911,595 $ 107,812,671
=========================================================================================================
Gross unrealized appreciation 75,994,248 1,028,938 16,170,862 1,061,529
Gross unrealized depreciation (33,042,973) (17,798) (1,252,333) (763,799)
- ---------------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) 42,951,275 1,011,140 14,918,529 297,730
Post-October losses (83,825,204) -- (28,997,866) (3,505,301)
Capital loss carryforward (30,790,451) (5,458,876) (31,350,357) (10,462,531)
Undistributed ordinary income -- 31,243 -- 134,857
Other temporary differences 1,977,830 (3,466) 368,088 (10,862)
- ---------------------------------------------------------------------------------------------------------
Accumulated (deficit) $ (69,686,550) $ (4,419,959) $ (45,061,606) $ (13,546,107)
=========================================================================================================
The difference between the tax cost of portfolio investments and the financial
statement cost is primarily due to wash sale loss deferrals, the tax treatment
of real estate investment trusts, and book/tax differences on securities
contributed in-kind.
93
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
As of September 30, 2009, the Funds had the following capital loss carryforwards
for federal income tax purposes.
EXPIRES
FUND AMOUNT SEPT. 30,
- --------------------------------------------------------------------------------
Healthcare and Biotechnology Fund $ 6,462,446 2017
-----------------
Intermediate Fixed Income Fund $ 86,389 2015
683 2017
-----------------
$ 87,072
-----------------
International Growth Fund $ 190,851 2016
137,191 2017
-----------------
$ 328,042
-----------------
Mid Cap Fund $ 120,759,656 2017
-----------------
Premium Yield Equity Fund $ 3,084,301 2017
-----------------
Sands Capital Select Growth Fund $ 12,366,467 2010
5,719,519 2011
2,692,298 2014
6,051,198 2015
3,960,969 2016
-----------------
$ 30,790,451
-----------------
Short Duration Fixed Income Fund $ 1,994,293 2012
96,050 2013
1,027,850 2014
852,134 2015
295,319 2016
1,193,230 2017
-----------------
$ 5,458,876
-----------------
Small Cap Value Opportunities Fund $ 31,350,357 2017
-----------------
Ultra Short Duration Fixed Income Fund $ 6,699,046 2012
371,187 2014
164,819 2015
3,227,479 2017
-----------------
$ 10,462,531
-----------------
The capital loss carryforwards may be utilized in future years to offset net
realized capital gains, if any, prior to distributing such gains to
shareholders.
The Sands Capital Select Growth Fund had $3,102,717 of capital losses expire
unutilized during the year ended September 30, 2009.
Certain reclassifications, the result of permanent differences between financial
statement and income tax reporting requirements have been made to the components
of capital. These reclassifications have no impact on the net assets or net
asset value per share of the Funds and are designed to present the Funds'
capital accounts on a tax basis. The following reclassifications which are
primarily attributed to the tax treatment of net investment loss, foreign
currency gain/loss, paydown gain/loss, expiration of capital loss carryforwards,
real estate investment trusts, and securities contributed in-kind have been made
to the following Funds for the year ended September 30, 2009:
94
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
ACCUMULATED ACCUMULATED
PAID-IN NET INVESTMENT NET REALIZED
CAPITAL INCOME (LOSS) GAINS (LOSSES)
- ----------------------------------------------------------------------------------
Healthcare and Biotechnology Fund $ (350,270) $ 213,118 $ 137,152
Intermediate Fixed Income Fund $ 40,470 $ 10,836 $ (51,306)
Mid Cap Fund $ -- $ (38,845) $ 38,845
Premium Yield Equity Fund $ (93,616) $ (10,279) $ 103,895
Sands Capital Select Growth Fund $(5,405,318) $ 2,302,601 $ 3,102,717
Short Duration Fixed Income Fund $ -- $ 57,848 $ (57,848)
Small Cap Value Opportunities Fund $ (47,896) $ (17,855) $ 65,751
Ultra Short Duration Fixed Income Fund $ -- $ 184,277 $ (184,277)
For the six months ended March 31, 2010, the Trust had the following federal tax
cost resulting in net unrealized appreciation (depreciation) as follows:
GROSS GROSS NET UNREALIZED
FEDERAL UNREALIZED UNREALIZED APPRECIATION
TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
- -------------------------------------------------------------------------------------------------------------------------------
Capital Appreciation Fund $ 5,080,053 $ 491,012 $ (19,483) $ 471,529
Core Plus Fixed Income Fund $ 15,317,771 $ 108,053 $ (53,016) $ 55,037
Emerging Markets Equity Fund $ 15,462,097 $ 1,363,034 $ (95,918) $ 1,267,116
Focused Equity $ 2,110,238 $ 177,046 $ (31,774) $ 145,272
Global Equity Fund $ 3,271,334 $ 167,222 $ (121,198) $ 46,024
Global Real Estate Fund $ 4,063,395 $ 238,881 $ (48,336) $ 190,545
Healthcare and Biotechnology Fund $ 30,823,246 $ 6,029,772 $ (402,325) $ 5,627,447
Intermediate Fixed Income Fund $ 105,844,486 $ 2,575,648 $ (167,605) $ 2,408,043
International Fixed Income Fund $ 6,986,703 $ 125,884 $ (450,418) $ (324,534)
International Growth Fund $ 40,974,247 $ 5,592,217 $ (601,072) $ 4,991,145
Large Cap Relative Value Fund $ 3,418,790 $ 490,294 $ (24,647) $ 465,647
Market Neutral Equity Fund $ 10,179,252 $ 1,177,963 $ (1,141,661) $ 36,302
Mid Cap Fund $ 159,504,384 $ 25,491,134 $ (1,350,268) $ 24,140,866
Mid Cap Value Fund $ 3,335,902 $ 405,647 $ (41,198) $ 364,449
Premium Yield Equity Fund $ 33,620,177 $ 2,899,915 $ (1,360,867) $ 1,539,048
Sands Capital Select Growth Fund $ 444,196,643 $ 123,898,521 $ (23,932,364) $ 99,966,157
Short Duration Fixed Income Fund $ 40,981,173 $ 1,055,111 $ (36,225) $ 1,018,886
Small Cap Core Fund $ 77,122,404 $ 2,807,719 $ (468,547) $ 2,339,172
Small Cap Value Opportunities Fund $ 76,481,877 $ 15,928,537 $ (638,287) $ 15,290,250
Ultra Short Duration Fixed Income Fund $ 141,356,134 $ 1,188,103 $ (366,780) $ 821,323
The Funds have analyzed their tax positions taken on Federal income tax returns
for all open tax years (tax years ended September 30, 2006 through 2009) and
have concluded that no provision for income tax is required in their financial
statements.
95
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
7. COMMITMENTS AND CONTINGENCIES
The Funds indemnify the Trust's officers and Trustees for certain liabilities
that might arise from their performance of their duties to the Funds.
Additionally, in the normal course of business, the Funds enter into contracts
that contain a variety of representations and warranties and which provide
general indemnifications. The Funds' maximum exposure under these arrangements
is unknown, as this would involve future claims that may be made against the
Funds that have not yet occurred. However, based on experience, the Funds expect
the risk of loss to be remote.
8. CONCENTRATIONS/RISKS
Certain Funds invest a high percentage of their assets in specific sectors of
the market in order to achieve a potentially greater investment return. As a
result, the Funds may be more susceptible to economic, political, and regulatory
developments in a particular sector of the market, positive or negative, and may
experience increased volatility on the Fund's net asset value and magnified
effect on the total return.
9. SUBSEQUENT EVENTS
Subsequent events occurring after the date of this report have been evaluated
for potential impact to this report through the date the financial statements
were issued. There were no subsequent events to report that would have a
material impact on the Funds' financial statements.
96
- --------------------------------------------------------------------------------
Portfolio of Investments
Capital Appreciation Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 94.2% SHARES VALUE
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 21.0%
Accenture PLC - Class A 2,560 $ 107,392
Cisco Systems, Inc.* 6,590 171,538
Dell, Inc.* 12,510 187,775
Google, Inc. - Class A* 220 124,742
Microsoft Corp. 4,965 145,326
Nokia Corp. ADR 11,025 171,328
Paychex, Inc. 3,420 104,994
QUALCOMM, Inc. 2,990 125,550
- --------------------------------------------------------------------------------
1,138,645
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 19.7%
Colgate-Palmolive Co. 1,720 146,647
CVS Caremark Corp. 6,635 242,576
PepsiCo, Inc. 2,855 188,887
Procter & Gamble Co./The 3,035 192,024
Sysco Corp. 5,295 156,203
Wal-Mart Stores, Inc. 2,600 144,560
- --------------------------------------------------------------------------------
1,070,897
- --------------------------------------------------------------------------------
HEALTH CARE -- 19.2%
Celgene Corp.* 650 40,274
Genzyme Corp.* 1,155 59,864
Gilead Sciences, Inc.* 985 44,798
Johnson & Johnson 3,325 216,790
Medtronic, Inc. 4,690 211,191
Patterson Cos., Inc. 5,340 165,807
Stryker Corp. 2,820 161,360
Waters Corp.* 2,140 144,535
- --------------------------------------------------------------------------------
1,044,619
- --------------------------------------------------------------------------------
INDUSTRIALS -- 10.4%
Danaher Corp. 2,200 175,802
Donaldson Co., Inc. 2,505 113,026
Rockwell Collins, Inc. 1,275 79,802
United Technologies Corp. 2,655 195,434
- --------------------------------------------------------------------------------
564,064
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 8.8%
O'Reilly Automotive, Inc.* 4,155 173,305
PetSmart, Inc. 2,555 81,658
Staples, Inc. 4,200 98,238
Strayer Education, Inc. 505 122,978
- --------------------------------------------------------------------------------
476,179
- --------------------------------------------------------------------------------
FINANCIALS -- 8.1%
BB&T Corp. 3,885 125,835
Goldman Sachs Group, Inc. (The) 835 142,476
JPMorgan Chase & Co. 3,840 171,840
- --------------------------------------------------------------------------------
440,151
- --------------------------------------------------------------------------------
ENERGY -- 5.1%
Exxon Mobil Corp. 2,795 187,209
Schlumberger Ltd. 1,450 92,017
- --------------------------------------------------------------------------------
279,226
- --------------------------------------------------------------------------------
MATERIALS -- 1.9%
Monsanto Co. 1,450 103,559
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 5,117,340
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 8.0%
Touchstone Institutional
Money Market Fund^ 434,242 434,242
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 102.2%
(Cost $5,080,053) $ 5,551,582
LIABILITIES IN EXCESS OF OTHER ASSETS -- (2.2%) (118,621)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 5,432,961
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
ADR - American Depositary Receipt
PLC - Public Limited Company
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $5,117,340 $ -- $ -- $5,117,340
Investment Fund 434,242 -- -- 434,242
==========
$5,551,582
See accompanying notes to financial statements.
97
- --------------------------------------------------------------------------------
Portfolio of Investments
Core Plus Fixed Income Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 44.3%
FINANCIALS -- 18.4%
$ 30,000 Ameriprise Financial, Inc.,
7.300%, 6/28/19 $ 34,759
105,000 Bank of America Corp., 4.500%, 4/1/15 105,876
15,000 Bank of America Corp.,
8.000%, 12/31/49 (a) 15,305
30,000 Bank of America Corp., 5.750%, 12/1/17 30,758
25,000 Bank of America Corp., 7.375%, 5/15/14 28,114
100,000 Barclays Bank PLC, 6.750%, 5/22/19 110,629
80,000 Brandywine Operating Partnership LP,
7.500%, 5/15/15 86,085
65,000 Cantor Fitzgerald LP, 144a,
7.875%, 10/15/19 65,140
40,000 Capital One Capital V, 10.250%, 8/15/39 47,387
20,000 Capital One Financial Corp.,
7.375%, 5/23/14 22,855
12,000 CB Richard Ellis Services, Inc.,
11.625%, 6/15/17 13,440
55,000 Citigroup Capital XXI,
8.300%, 12/21/57 (a) 55,688
25,000 Commonwealth Bank of Australia, 144a,
5.000%, 10/15/19 25,126
65,000 Credit Suisse AG, 5.400%, 1/14/20 65,508
15,000 Developers Diversified Realty Corp.,
9.625%, 3/15/16 16,779
15,000 Developers Diversified Realty Corp.,
7.500%, 4/1/17 15,175
20,000 Digital Realty Trust LP, 144a,
5.875%, 2/1/20 19,557
45,000 Duke Realty LP, 8.250%, 8/15/19 50,188
6,000 Equinix, Inc., 8.125%, 3/1/18 6,210
20,000 General Electric Capital Corp.,
0.492%, 1/8/16 (a) 18,331
80,000 General Electric Capital Corp.,
5.500%, 1/8/20 81,621
30,000 Glencore Funding LLC, 144a,
6.000%, 4/15/14 30,769
45,000 Goldman Sachs Group, Inc.,
5.375%, 3/15/20 44,584
40,000 Goldman Sachs Group, Inc.,
6.000%, 5/1/14 43,799
30,000 Health Care REIT, Inc.,
6.125%, 4/15/20 30,093
40,000 Healthcare Realty Trust, Inc.,
6.500%, 1/17/17 41,037
15,000 Host Hotels & Resorts LP, Ser O,
6.375%, 3/15/15 14,888
25,000 Icahn Enterprises LP/Icahn Enterprises
Finance Corp., 144a, 8.000%, 1/15/18 24,094
15,000 International Lease Finance Corp., 144a,
8.625%, 9/15/15 15,334
25,000 Jefferies Group, Inc., 6.250%, 1/15/36 21,279
85,000 JPMorgan Chase & Co., 6.300%, 4/23/19 93,802
25,000 Lazard Group LLC, 7.125%, 5/15/15 26,250
15,000 Liberty Mutual Group, Inc., 144a,
10.750%, 6/15/58 (a) 16,800
20,000 Lincoln National Corp., 8.750%, 7/1/19 24,455
100,000 Lloyds TSB Bank PLC, 144a,
5.800%, 1/13/20 97,569
20,000 Mack-Cali Realty LP, 7.750%, 8/15/19 22,054
50,000 Macquarie Group Ltd., 144a,
7.625%, 8/13/19 55,810
25,000 Macquarie Group Ltd., 144a,
7.300%, 8/1/14 27,915
75,000 MetLife, Inc., 6.750%, 6/1/16 84,049
20,000 MetLife, Inc., 10.750%, 8/1/39 25,779
100,000 Morgan Stanley, 5.500%, 1/26/20 97,814
75,000 NASDAQ OMX Group, Inc.,
5.550%, 1/15/20 74,585
105,000 National Rural Utilities Cooperative
Finance Corp., 10.375%, 11/1/18 139,657
15,000 Nationwide Mutual Insurance Co., 144a,
9.375%, 8/15/39 17,091
15,000 Pacific Life Insurance Co., 144a,
9.250%, 6/15/39 18,587
75,000 Principal Financial Group, Inc.,
7.875%, 5/15/14 84,870
15,000 ProLogis, 7.375%, 10/30/19 15,398
25,000 ProLogis, 7.625%, 8/15/14 27,335
40,000 Raymond James Financial, Inc.,
8.600%, 8/15/19 45,716
20,000 Regions Financial Corp.,
7.750%, 11/10/14 21,043
25,000 Simon Property Group LP,
10.350%, 4/1/19 31,434
15,000 Simon Property Group LP,
6.750%, 5/15/14 16,411
50,000 SLM Corp., 8.000%, 3/25/20 48,688
20,000 Teachers Insurance & Annuity
Association of America, 144a,
6.850%, 12/16/39 21,695
20,000 Terremark Worldwide, Inc., 144a,
12.250%, 6/15/17 23,000
20,000 USB Capital XIII Trust, 6.625%, 12/15/39 20,245
115,000 Validus Holdings Ltd., 8.875%, 1/26/40 118,014
50,000 Westpac Banking Corp.,
4.875%, 11/19/19 49,664
45,000 Willis North America, Inc.,
7.000%, 9/29/19 47,123
20,000 Willis North America, Inc.,
6.200%, 3/28/17 20,262
20,000 Zions Bancorp., 7.750%, 9/23/14 20,172
- --------------------------------------------------------------------------------
2,613,695
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.9%
50,000 AT&T, Inc., 6.700%, 11/15/13 57,054
50,000 AT&T, Inc., 5.800%, 2/15/19 53,447
98
- --------------------------------------------------------------------------------
Core Plus Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 44.3% (CONTINUED)
$ 45,000 British Telecommunications PLC,
9.625%, 12/15/30 $ 56,668
80,000 Cellco Partnership/Verizon Wireless
Capital LLC, 8.500%, 11/15/18 99,813
34,000 Frontier Communications Corp.,
7.875%, 1/15/27 30,600
15,000 NII Capital Corp., 144a, 8.875%, 12/15/19 15,525
33,000 Qwest Communications International,
Inc., Ser B, 7.500%, 2/15/14 33,578
60,000 Qwest Corp., 8.875%, 3/15/12 65,700
90,000 Rogers Communications, Inc.,
7.500%, 3/15/15 105,048
31,000 Sprint Nextel Corp., 8.375%, 8/15/17 31,155
75,000 Telecom Italia Capital SA,
7.175%, 6/18/19 80,970
66,000 Verizon Wireless Capital LLC, 144a,
5.550%, 2/1/14 72,128
- --------------------------------------------------------------------------------
701,686
- --------------------------------------------------------------------------------
UTILITIES -- 4.6%
15,000 AES Corp., 9.375%, 9/15/10 15,413
20,000 AES Corp., 7.750%, 10/15/15 20,350
25,000 Ameren Corp., 8.875%, 5/15/14 28,846
70,000 CenterPoint Energy, Inc., 6.500%, 5/1/18 74,121
33,000 Copano Energy LLC/Copano Energy
Finance Corp., 8.125%, 3/1/16 33,454
15,000 Dynegy Holdings, Inc., 7.750%, 6/1/19 11,325
25,000 El Paso Pipeline Partners Operating Co.
LLC, 6.500%, 4/1/20 25,305
50,000 Energy Transfer Partners LP,
9.700%, 3/15/19 63,288
25,000 Exelon Generation Co. LLC,
6.250%, 10/1/39 25,280
10,000 ITC Holdings Corp., 144a,
5.500%, 1/15/20 10,049
65,000 Nevada Power Co., 6.500%, 8/1/18 70,949
38,000 NRG Energy, Inc., 7.250%, 2/1/14 38,285
30,000 Orion Power Holdings, Inc.,
12.000%, 5/1/10 30,113
45,000 Plains All American Pipeline LP,
8.750%, 5/1/19 54,899
8,000 Regency Energy Partners LP/Regency
Energy Finance Corp., 144a,
9.375%, 6/1/16 8,480
25,000 Sempra Energy, 6.000%, 10/15/39 24,535
65,000 Sempra Energy, 9.800%, 2/15/19 84,474
25,000 Sempra Energy, 6.500%, 6/1/16 27,930
- --------------------------------------------------------------------------------
647,096
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 3.5%
12,000 AMC Entertainment, Inc., 8.750%, 6/1/19 12,600
55,000 Comcast Corp., 6.450%, 3/15/37 56,010
55,000 DIRECTV Holdings LLC, 144a,
3.550%, 3/15/15 54,117
25,000 DISH DBS Corp., 6.625%, 10/1/14 25,188
15,000 DISH DBS Corp., 6.375%, 10/1/11 15,600
16,000 Ferrellgas Partners LP, 8.750%, 6/15/12 16,200
12,000 GameStop Corp., 8.000%, 10/1/12 12,450
10,000 GeoEye, Inc., 144a, 9.625%, 10/1/15 10,225
29,000 Goodyear Tire & Rubber,
10.500%, 5/15/16 31,320
25,000 Intelsat Subsidiary Holding Co. SA,
8.500%, 1/15/13 25,375
10,000 Lamar Media Corp., 7.250%, 1/1/13 10,075
10,000 Mediacom Broadband LLC,
8.500%, 10/15/15 10,225
10,000 Nebraska Book Co., Inc., 10.000%, 12/1/11 10,325
15,000 Nebraska Book Co., Inc., 144a,
10.000%, 12/1/11 15,487
20,000 NetFlix, Inc., 8.500%, 11/15/17 21,000
20,000 News America, Inc., 6.900%, 8/15/39 21,833
10,000 Pokagon Gaming Auth., 144a,
10.375%, 6/15/14 10,500
10,000 Royal Caribbean Cruises Ltd.,
6.875%, 12/1/13 10,100
5,000 Scientific Games International, Inc.,
9.250%, 6/15/19 5,288
10,000 Starwood Hotels & Resorts Worldwide,
Inc., 7.875%, 5/1/12 10,825
7,000 Starwood Hotels & Resorts Worldwide,
Inc., 7.875%, 10/15/14 7,577
10,000 Sun Media Corp., 7.625%, 2/15/13 9,813
40,000 Time Warner Cable, Inc., 8.750%, 2/14/19 49,607
35,000 Time Warner Cable, Inc., 6.200%, 7/1/13 38,622
10,000 Videotron Ltee, 6.875%, 1/15/14 10,150
- --------------------------------------------------------------------------------
500,512
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 3.5%
25,000 Altria Group, Inc., 9.700%, 11/10/18 30,741
20,000 Anheuser-Busch InBev Worldwide, Inc.,
144a, 6.375%, 1/15/40 21,347
15,000 Anheuser-Busch InBev Worldwide, Inc.,
144a, 5.375%, 11/15/14 16,247
150,000 Anheuser-Busch InBev Worldwide, Inc.,
4.125%, 1/15/15 154,335
45,000 Bunge Ltd. Finance Corp.,
8.500%, 6/15/19 52,313
25,000 CVS Caremark Corp., 6.600%, 3/15/19 27,950
19,958 CVS Pass-Through Trust, 144a,
7.507%, 1/10/32 22,194
20,000 Delhaize Group SA, 5.875%, 2/1/14 21,869
105,000 Kraft Foods, Inc., 5.375%, 2/10/20 106,717
40,000 Stater Brothers Holdings,
8.125%, 6/15/12 40,200
- --------------------------------------------------------------------------------
493,913
- --------------------------------------------------------------------------------
99
- --------------------------------------------------------------------------------
Core Plus Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 44.3% (CONTINUED)
MATERIALS -- 2.5%
$ 35,000 Airgas, Inc., 2.850%, 10/1/13 $ 34,922
13,000 AK Steel Corp., 7.750%, 6/15/12 13,065
5,000 Ball Corp., 6.750%, 9/15/20 5,088
42,000 Cellu Tissue Holdings, Inc.,
11.500%, 6/1/14 46,830
23,000 Clearwater Paper Corp., 144a,
10.625%, 6/15/16 25,530
12,000 Domtar Corp., 10.750%, 6/1/17 14,580
10,000 Freeport-McMoRan Copper & Gold, Inc.,
8.375%, 4/1/17 11,125
25,000 International Paper Co., 9.375%, 5/15/19 31,252
5,000 International Paper Co., 7.300%, 11/15/39 5,343
30,000 Masco Corp., 7.125%, 3/15/20 30,305
19,000 Neenah Paper, Inc., 7.375%, 11/15/14 18,668
5,000 Peabody Energy Corp., Ser B,
6.875%, 3/15/13 5,056
18,000 Rock-Tenn Co., 9.250%, 3/15/16 19,620
10,000 Rock-Tenn Co., 8.200%, 8/15/11 10,475
10,000 Solutia, Inc., 7.875%, 3/15/20 10,125
17,000 Steel Dynamics, Inc., 6.750%, 4/1/15 17,128
30,000 Teck Resources Ltd., 10.250%, 5/15/16 35,700
25,000 Vale Overseas Ltd., 5.625%, 9/15/19 25,816
- --------------------------------------------------------------------------------
360,628
- --------------------------------------------------------------------------------
ENERGY -- 2.4%
30,000 Berry Petroleum Co., 10.250%, 6/1/14 33,075
25,000 Bill Barrett Corp., 9.875%, 7/15/16 26,937
10,000 Chesapeake Energy Corp.,
7.500%, 9/15/13 10,125
43,000 Chesapeake Energy Corp.,
6.375%, 6/15/15 42,248
18,000 Denbury Resources, Inc.,
8.250%, 2/15/20 19,080
14,000 Encore Acquisition Co., 9.500%, 5/1/16 15,137
20,000 Geokinetics Holdings USA, Inc., 144a,
9.750%, 12/15/14 18,750
10,000 Linn Energy LLC, 144a, 11.750%, 5/15/17 11,350
25,000 Nexen, Inc., 7.500%, 7/30/39 28,517
30,000 Petrobras International Finance Co.,
7.875%, 3/15/19 35,087
28,000 Plains Exploration & Production Co.,
7.750%, 6/15/15 28,385
30,000 Pride International, Inc., 8.500%, 6/15/19 33,900
28,000 Quicksilver Resources, Inc.,
11.750%, 1/1/16 32,060
- --------------------------------------------------------------------------------
334,651
- --------------------------------------------------------------------------------
INDUSTRIALS -- 2.3%
25,000 Allied Waste North America, Inc., Ser B,
7.125%, 5/15/16 27,156
20,000 ARAMARK Corp., 8.500%, 2/1/15 20,450
10,000 Avis Budget Car Rental LLC/Avis Budget
Finance, Inc., 144a, 9.625%, 3/15/18 10,450
30,000 Avis Budget Car Rental LLC/Avis Budget
Finance, Inc., 7.750%, 5/15/16 29,400
15,000 Bombardier, Inc., 144a, 7.750%, 3/15/20 15,675
45,000 Canadian Pacific Railway Co.,
7.250%, 5/15/19 51,122
6,000 Cornell Cos., Inc., 10.750%, 7/1/12 6,067
20,000 CSX Corp., 7.375%, 2/1/19 23,306
42,000 FTI Consulting, Inc., 7.625%, 6/15/13 42,525
8,000 Kansas City Southern Railway,
8.000%, 6/1/15 8,310
15,000 L-3 Communications Corp.,
6.125%, 7/15/13 15,225
55,000 Republic Services, Inc., 144a,
6.200%, 3/1/40 53,574
20,000 Roper Industries, Inc., 6.250%, 9/1/19 21,194
- --------------------------------------------------------------------------------
324,454
- --------------------------------------------------------------------------------
HEALTH CARE -- 1.9%
15,000 Biomet, Inc., 10.000%, 10/15/17 16,537
40,000 Boston Scientific Corp., 4.500%, 1/15/15 38,335
20,000 Boston Scientific Corp., 6.000%, 1/15/20 18,894
33,000 CHS/Community Health Systems, Inc.,
8.875%, 7/15/15 34,155
30,000 Coventry Health Care, Inc.,
6.300%, 8/15/14 30,672
25,000 HCA, Inc., 144a, 7.250%, 9/15/20 25,344
32,000 HCA, Inc., 9.250%, 11/15/16 34,020
50,000 Life Technologies Corp., 6.000%, 3/1/20 51,193
20,000 Teva Pharmaceutical Finance Co. LLC,
6.150%, 2/1/36 20,746
- --------------------------------------------------------------------------------
269,896
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 0.3%
15,000 Brocade Communications Systems, Inc.,
144a, 6.875%, 1/15/20 15,300
11,000 Crown Castle International Corp.,
9.000%, 1/15/15 11,908
10,000 Xerox Corp., 6.750%, 12/15/39 10,441
- --------------------------------------------------------------------------------
37,649
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS $ 6,284,180
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS -- 20.3%
62,613 FHLMC, Pool #G04346, 6.000%, 5/1/38 68,358
126,872 FHLMC Gold, Pool #G01838,
5.000%, 7/1/35 131,759
78,143 FHLMC Gold, Pool #G01665,
5.500%, 3/1/34 82,943
30,660 FHLMC Gold, Pool #G02419,
6.500%, 10/1/36 33,363
66,694 FHLMC Gold, Pool #G03633,
6.500%, 12/1/37 72,614
100
- --------------------------------------------------------------------------------
Core Plus Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS -- 20.3% (CONTINUED)
$ 10,315 FHLMC Gold, Pool #G05680,
6.500%, 4/1/39 $ 11,224
114,059 FNMA, Pool #735925, 5.000%, 10/1/35 117,989
402,554 FNMA, Pool #745275, 5.000%, 2/1/36 416,425
35,629 FNMA, Pool #888405, 5.000%, 12/1/36 36,856
146,416 FNMA, Pool #256717, 5.500%, 5/1/22 156,798
594,554 FNMA, Pool #995023, 5.500%, 8/1/37 628,564
210,011 FNMA, Pool #889684, 5.500%, 8/1/37 222,024
256,730 FNMA, Pool #929317, 5.500%, 3/1/38 270,880
99,037 FNMA, Pool #831811, 6.000%, 9/1/36 105,708
30,165 FNMA, Pool #888222, 6.000%, 2/1/37 32,197
216,224 FNMA, Pool #911586, 6.000%, 4/1/37 230,046
101,000 FNMA 30 Year TBA April 2010,
5.000%, 4/25/40 104,188
151,000 FNMA 30 Year TBA April 2010,
5.500%, 4/25/40 159,140
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED OBLIGATIONS $ 2,881,076
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 17.6%
1,420,000 U.S. Treasury Note, 4.875%, 6/30/12 1,537,482
100,000 U.S. Treasury Note, 3.375%, 7/31/13 105,235
860,000 U.S. Treasury Note, 1.875%, 4/30/14 849,586
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS $ 2,492,303
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES -- 7.6%
100,000 Banc of America Commercial
Mortgage, Inc., Ser 2007-1,
Class A4, 5.451%, 1/15/49 98,074
50,000 Banc of America Commercial
Mortgage, Inc., Ser 2008-1,
Class A4, 6.181%, 2/10/51 (a) 50,149
31,000 Banc of America Funding Corp.,
Ser 2006-G, Class 3A2,
5.750%, 7/20/36 (a) 24,569
15,098 Bear Stearns Adjustable Rate
Mortgage Trust, Ser 2004-1,
Class 21A1, 3.059%, 4/25/34 (a) 13,565
54,000 Bear Stearns Commercial
Mortgage Securities, Ser 2007-PW16,
Class A4, 5.719%, 6/11/40 (a) 53,304
60,000 Bear Stearns Commercial
Mortgage Securities, Ser 2007-PW17,
Class A4, 5.694%, 6/11/50 (a) 59,381
116,443 Citigroup Mortgage Loan Trust, Inc.,
Ser 2005-11, Class A2A,
4.700%, 12/25/35 (a) 106,650
110,000 Commercial Mortgage Pass Through
Certificates, Ser 2007-C9, Class A4,
5.816%, 12/10/49 (a) 109,982
62,258 Deutsche ALT-A Securities, Inc.
Alternate Loan Trust, Ser 2005-1,
Class 1A1, 0.746%, 2/25/35 (a) 49,414
83,000 Greenwich Capital Commercial
Funding Corp., Ser 2007-GG9,
Class A4, 5.444%, 3/10/39 80,717
36,309 GSR Mortgage Loan Trust, Ser 2004-9,
Class 4A1, 3.252%, 8/25/34 (a) 34,149
40,370 GSR Mortgage Loan Trust, Ser 2005-4F,
Class 6A1, 6.500%, 2/25/35 39,714
25,000 JP Morgan Mortgage Trust, Ser 2003-A2,
Class 2A3, 4.691%, 11/25/33 (a) 23,902
40,000 JP Morgan Mortgage Trust, Ser 2005-A2,
Class 5A2, 4.307%, 4/25/35 (a) 36,332
22,598 Nomura Asset Acceptance Corp.,
Ser 2005-AP1, Class 2A5,
4.855%, 2/25/35 17,071
42,002 Residential Asset Mortgage Products,
Inc., Ser 2004-SL1, Class A7,
7.000%, 11/25/31 42,369
34,813 Sequoia Mortgage Trust, Ser 2003-5,
Class A1, 0.860%, 9/20/33 (a) 30,763
27,601 Structured Adjustable Rate
Mortgage Loan Trust, Ser 2004-12,
Class 6A, 3.215%, 9/25/34 (a) 24,147
36,136 Structured Asset Securities Corp.,
Ser 2003-26A, Class 3A5,
2.533%, 9/25/33 (a) 32,288
95,000 Wachovia Bank Commercial
Mortgage Trust, Ser 2007-C34,
Class A3, 5.678%, 5/15/46 91,454
25,281 WaMu Mortgage Pass Through
Certificates, Ser 2004-AR1,
Class A, 2.784%, 3/25/34 (a) 23,406
21,142 Wells Fargo Mortgage Backed Securities
Trust, Ser 2005-AR8, Class 3A2,
3.352%, 6/25/35 (a) 20,155
20,149 Wells Fargo Mortgage Backed Securities
Trust, Ser 2007-5, Class 2A3,
5.500%, 5/25/22 18,881
- --------------------------------------------------------------------------------
TOTAL MORTGAGE-BACKED SECURITIES $ 1,080,436
- --------------------------------------------------------------------------------
SOVEREIGN GOVERNMENT OBLIGATIONS -- 6.0%
334,000 Australia Government Bond, Ser 126,
4.500%, 4/15/20 276,888
105,000 Australia Government Bond, Ser 125,
6.250%, 6/15/14 99,253
40,000 Corp. Andina de Fomento,
8.125%, 6/4/19 46,990
195,000 New Zealand Government Bond,
Ser 1217, 6.000%, 12/15/17 140,929
205,000 New Zealand Government Bond,
Ser 521, 6.000%, 5/15/21 145,249
87,000 United Kingdom Gilt, 4.500%, 3/7/19 138,437
- --------------------------------------------------------------------------------
TOTAL SOVEREIGN GOVERNMENT
OBLIGATIONS $ 847,746
- --------------------------------------------------------------------------------
101
- --------------------------------------------------------------------------------
Core Plus Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 1.0%
$ 100,000 American Express Credit Account
Master Trust, Ser 2008-1, Class A,
0.680%, 8/15/13 (a) $ 100,258
17,203 Countrywide Asset-Backed
Certificates, Ser 2004-15,
Class AF4, 4.614%, 12/25/32 (a) 17,158
32,518 Morgan Stanley Home Equity
Loan Trust, Ser 2007-2,
Class A1, 0.346%, 4/25/37 (a) 28,079
- --------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES $ 145,495
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 1.1%
155,000 Canadian Treasury Bill, 0.000%, 5/27/10 152,545
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 10.5%
1,489,027 Touchstone Institutional
Money Market Fund^ $ 1,489,027
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 108.4%
(Cost $15,317,771) $ 15,372,808
LIABILITIES IN
EXCESS OF OTHER ASSETS -- (8.4%) (1,189,927)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 14,182,881
================================================================================
(a) Variable rate security - the rate reflected is the rate in effect as of
March 31, 2010.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
FNMA - Federal National Mortgage Association
FHLMC - Federal Home Loan Mortgage Corp.
PLC - Public Limited Company
144a - This is a restricted security that was sold in a transaction exempt from
Rule 144a of the Securities Act of 1933. This security may be sold in
transactions exempt from registration, normally to qualified
institutional buyers. At March 31, 2010, these securities were valued at
$890,759 or 6.3% of net assets.
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Corporate
Bonds $ -- $6,331,170 $ -- $ 6,331,170
U.S. Government
Mortgage-Backed
Obligations -- 2,881,076 -- 2,881,076
U.S. Treasury
Obligations -- 2,492,303 -- 2,492,303
Investment
Fund 1,489,027 -- -- 1,489,027
Mortgage-Backed
Securities -- 1,080,436 -- 1,080,436
Sovereign
Government
Obligations 138,437 662,319 -- 800,756
Short-Term
Investments -- 152,545 -- 152,545
Asset-Backed
Securities -- 145,495 -- 145,495
===========
$15,372,808
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS*
Forward
Currency
Contracts $ -- $ (6,152) $ -- $ (6,152)
* Other financial instruments are derivative instruments not reflected in total
investments. Amounts shown represent unrealized appreciation.
See accompanying notes to financial statements.
102
- --------------------------------------------------------------------------------
Core Plus Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
CONTRACT TO UNREALIZED
---------------------------------------- APPRECIATION/
VALUE DATE RECEIVE DELIVER (DEPRECIATION)
- --------------------------------------------------------------------------------
05/11/2010 AUD 31,000 USD 27,836 $ 502
04/07/2010 EUR 35,878 USD 49,332 (870)
04/07/2010 EUR 36,074 USD 51,803 (3,076)
05/11/2010 USD 44,630 AUD 49,000 (165)
05/11/2010 USD 41,344 AUD 45,520 (270)
05/11/2010 USD 103,111 AUD 119,000 (5,676)
05/11/2010 USD 48,016 CAD 49,000 (255)
05/11/2010 USD 25,300 CAD 27,000 (1,298)
04/07/2010 USD 102,963 EUR 71,952 5,775
05/17/2010 USD 63,966 GBP 42,500 (532)
05/17/2010 USD 77,557 GBP 49,700 2,133
05/11/2010 USD 42,127 NZD 60,000 (398)
05/11/2010 USD 45,724 NZD 65,000 (345)
05/11/2010 USD 55,024 NZD 80,000 (1,677)
---------
$ (6,152)
=========
103
- --------------------------------------------------------------------------------
Portfolio of Investments
Emerging Markets Equity Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
PREFERRED STOCKS -- 1.3% SHARES VALUE
- --------------------------------------------------------------------------------
MATERIALS -- 1.3%
Vale SA (Preference) (Brazil) 7,968 $ 220,910
COMMON STOCKS -- 91.0%
FINANCIALS -- 22.1%
Akbank TAS (Turkey) 45,158 291,611
Banco Bradesco SA (Preference) (Brazil) 16,454 300,979
Bank Mandiri Tbk PT (Indonesia) 392,000 230,715
Busan Bank (South Korea) 17,820 191,503
China Overseas Land & Investment Ltd.
(Hong Kong) 126,400 285,549
CIMB Group Holdings Bhd (Malaysia) 50,500 217,767
First Pacific Co. (Hong Kong) 365,700 236,917
Grupo Financiero Banorte SAB de
CV - Class O (Mexico) 38,741 171,827
Industrial & Commercial Bank of
China (China) 243,300 185,510
JPM Bharat Forge Ltd Pnote (Netherlands)* 16,800 95,063
JPM Bharat Heavy Electricals Pnote,
Series 0005 (Netherlands)* 1,900 101,051
JPM ITC Ltd Pnote, Series 000H
(Netherlands)* 16,500 96,559
JPM Oil & Natural Gas Corp. Ltd Pnote,
Series 000J (Netherlands)* 3,700 90,438
JPM Piramal Healthcare Ltd Pnote,
Series 0003 (Netherlands)* 10,800 102,053
Kasikornbank PCL (Thailand) 78,000 248,385
Keppel Land Ltd. (Singapore) 79,900 209,609
Land and Houses PCL (Thailand) 526,900 101,812
Shinhan Financial Group Co. Ltd.
(South Korea) 4,080 160,407
Standard Bank Group Ltd. (South Africa) 13,517 212,670
Wharf Holdings Ltd. (Hong Kong) 44,300 249,623
- --------------------------------------------------------------------------------
3,780,048
- --------------------------------------------------------------------------------
MATERIALS -- 16.0%
China BlueChemical Ltd. (China) 348,300 226,990
Cia de Minas Buenaventura SA ADR (Peru) 5,798 179,564
Eldorado Gold Corp. (Canada)* 24,032 288,948
Fibria Celulose SA (Brazil)* 10,677 231,055
Fresnillo PLC (United Kingdom) 14,100 181,425
Gerdau SA (Preference) (Brazil) 15,216 247,559
Impala Platinum Holdings Ltd. (South Africa) 8,108 238,215
POSCO (South Korea) 519 242,378
Randgold Resources Ltd. ADR (Jersey, C.I.) 4,528 347,886
Siam Cement PCL (Thailand) 10,200 82,622
Siam Cement PCL (Non-Voting) (Thailand) 10,400 82,634
Vale SA ADR (Brazil) 7,258 233,635
Yamana Gold, Inc. (Canada) 15,735 155,692
- --------------------------------------------------------------------------------
2,738,603
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 14.8%
Cafe de Coral Holdings Ltd. (Hong Kong) 70,600 166,220
Consorcio ARA SAB de CV (Mexico)* 154,771 104,270
Daphne International Holdings Ltd.
(Hong Kong) 267,200 258,108
Foschini Ltd. (South Africa) 24,504 225,400
Genting Malaysia BHD (Malaysia) 183,300 161,347
Giant Manufacturing Co. Ltd. (Taiwan) 60,000 174,020
Grupo Televisa SA ADR (Mexico) 7,928 166,646
Hankook Tire Co. Ltd. (South Korea) 10,770 204,331
JD Group Ltd. (South Africa) 31,203 189,562
Lojas Americanas SA (Preference) (Brazil) 30,812 229,359
Lojas Renner SA (Brazil) 14,126 324,422
Ports Design Ltd. (Hong Kong) 96,800 245,609
Shangri-La Asia Ltd. (Hong Kong) 37,800 74,196
- --------------------------------------------------------------------------------
2,523,490
- --------------------------------------------------------------------------------
ENERGY -- 9.9%
CNOOC Ltd. (Hong Kong) 140,200 230,771
PetroChina Co. Ltd. - Class H (China) 62,400 72,975
Petroleo Brasileiro SA (Preference) (Brazil) 20,904 413,852
PTT Exploration & Production PCL (Thailand) 32,300 147,295
Reliance Industries Ltd. GDR 144A, (India) 4,400 212,080
Tenaris SA ADR (Luxembourg) 5,688 244,243
Thai Oil PCL (Thailand) 111,900 172,979
Tupras Turkiye Petrol Rafine (Turkey) 8,678 197,279
- --------------------------------------------------------------------------------
1,691,474
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 8.3%
British American Tobacco Malaysia Bhd
(Malaysia) 13,200 178,699
Fomento Economico Mexicano SAB de
CV ADR (Mexico) 2,329 110,697
Kimberly-Clark de Mexico SAB de
CV - Class A (Mexico) 36,200 204,649
Massmart Holdings Ltd. (South Africa) 17,215 256,460
SABMiller PLC (United Kingdom) 6,208 181,987
Tingyi Cayman Islands Holding Corp.
(China) 118,900 281,163
Wal-Mart de Mexico SAB de CV (Mexico) 39,610 202,943
- --------------------------------------------------------------------------------
1,416,598
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 8.0%
ASM Pacific Technology Ltd. (Hong Kong) 29,800 282,294
Infosys Technologies Ltd. ADR (India) 5,178 304,725
Samsung Electronics Co. Ltd. (South Korea) 319 230,800
Taiwan Semiconductor Manufacturing Co.
Ltd. (Taiwan) 96,000 185,924
VTech Holdings Ltd. (Hong Kong) 34,000 367,842
- --------------------------------------------------------------------------------
1,371,585
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 4.3%
America Movil SAB de CV, Series L ADR
(Mexico) 4,308 216,865
MTN Group Ltd. (South Africa)* 13,226 203,371
Telekomunikasi Indonesia Tbk PT (Indonesia) 208,600 184,734
Turkcell Iletisim Hizmet AS (Turkey) 21,335 130,040
- --------------------------------------------------------------------------------
735,010
- --------------------------------------------------------------------------------
104
- --------------------------------------------------------------------------------
Emerging Markets Equity Fund (Continued)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 91.0% (CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------
INDUSTRIALS -- 4.0%
All America Latina Logistica SA (Brazil) 27,253 $ 248,952
Trakya Cam Sanayi AS (Turkey)* 138,535 200,828
Weichai Power Co. Ltd. - Class H (China) 28,500 238,595
- --------------------------------------------------------------------------------
688,375
- --------------------------------------------------------------------------------
UTILITIES -- 2.3%
Cez AS (Czech Republic) 4,008 189,344
Cia Energetica de Minas Gerais (Preference)
(Brazil) 12,326 203,656
- --------------------------------------------------------------------------------
393,000
- --------------------------------------------------------------------------------
HEALTH CARE -- 1.3%
Teva Pharmaceutical Industries Ltd. ADR
(Israel) 3,589 226,394
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 15,564,577
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 5.2%
Touchstone Institutional
Money Market Fund^ 895,928 895,928
- --------------------------------------------------------------------------------
NUMBER OF
WARRANTS
- --------------------------------------------------------------------------------
WARRANTS -- 0.3%
JP Morgan Structured Products,
expiring 8/25/14 2,000 47,798
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 97.8%
(Cost $15,462,097) $ 16,729,213
OTHER ASSETS IN EXCESS OF LIABILITIES -- 2.2% 374,600
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 17,103,813
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
ADR - American Depositary Receipt
GDR - Global Depositary Receipt
MTN - Medium Term Note
PLC - Public Limited Company
144a - This is a restricted security that was sold in a transaction exempt from
Rule 144a of the Securities Act of 1933. This security may be sold in
transactions exempt from registration, normally to qualified
institutional buyers. At March 31, 2010, these securities were valued at
$212,080 or 1.2% of net assets.
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common
Stocks $ 15,564,577 $ -- $ -- $ 15,564,577
Investment
Fund 895,928 -- -- 895,928
Preferred
Stocks 220,910 -- -- 220,910
Warrants 47,798 -- -- 47,798
==============
$ 16,729,213
See accompanying notes to financial statements.
105
- --------------------------------------------------------------------------------
Portfolio of Investments
Focused Equity Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 97.1% SHARES VALUE
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 19.4%
Cisco Systems, Inc.* 1,642 $ 42,741
Dell, Inc.* 5,261 78,967
Intel Corp. 1,941 43,207
Microsoft Corp. 1,971 57,691
Motorola, Inc.* 5,139 36,076
Nokia Corp. ADR 11,385 176,923
- --------------------------------------------------------------------------------
435,605
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 17.6%
Comcast Corp. - Class A 2,553 48,048
International Speedway Corp. - Class A 1,406 36,233
Sears Holdings Corp.* 233 25,264
Sony Corp. ADR 1,181 45,244
Sotheby's 1,257 39,080
Time Warner Cable, Inc. 3,765 200,712
- --------------------------------------------------------------------------------
394,581
- --------------------------------------------------------------------------------
FINANCIALS -- 17.3%
Allstate Corp. 2,726 88,077
American Express Co. 979 40,393
Bank of America Corp. 5,279 94,230
PNC Financial Services Group, Inc. 1,493 89,132
SEI Investments Co. 3,477 76,390
- --------------------------------------------------------------------------------
388,222
- --------------------------------------------------------------------------------
INDUSTRIALS -- 15.6%
AGCO Corp.* 2,934 105,242
Cornell Cos., Inc.* 4,331 79,301
FedEx Corp. 433 40,442
Norfolk Southern Corp. 2,249 125,697
- --------------------------------------------------------------------------------
350,682
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 11.8%
CVS Caremark Corp. 1,627 59,483
Dean Foods Co.* 4,747 74,480
Heineken NV ADR 2,896 74,138
Kraft Foods, Inc. - Class A 1,903 57,547
- --------------------------------------------------------------------------------
265,648
- --------------------------------------------------------------------------------
HEALTH CARE -- 8.8%
Genzyme Corp.* 1,943 100,706
Merck & Co., Inc. 1,073 40,076
UnitedHealth Group, Inc. 1,713 55,964
- --------------------------------------------------------------------------------
196,746
- --------------------------------------------------------------------------------
ENERGY -- 4.0%
Royal Dutch Shell PLC ADR 1,636 90,520
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.6%
Telus Corp. 1,638 58,673
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 2,180,677
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 3.3%
Touchstone Institutional
Money Market Fund^ 74,833 74,833
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 100.4%
(Cost $2,110,238) $ 2,255,510
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.4%) (9,855)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 2,245,655
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
ADR - American Depositary Receipt
PLC - Public Limited Company
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common
Stocks $ 2,180,677 $ -- $ -- $ 2,180,677
Investment
Fund 74,833 -- -- 74,833
==============
$ 2,255,510
See accompanying notes to financial statements.
106
- --------------------------------------------------------------------------------
Portfolio of Investments
Global Equity Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
PREFERRED STOCKS -- 1.4% SHARES VALUE
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 1.4%
Henkel AG & Co. KGaA (Germany) 881 $ 47,361
- --------------------------------------------------------------------------------
COMMON STOCKS -- 90.1%
INDUSTRIALS -- 22.2%
Ansaldo STS SpA (Italy) 5,080 103,954
Central Japan Railway Co. (Japan) 13 99,000
De La Rue PLC (United Kingdom) 2,944 41,387
Doosan Heavy Industries and
Construction Co. Ltd. (South Korea) 765 61,303
G4S PLC (United Kingdom) 21,570 85,586
Invensys PLC (United Kingdom) 10,300 53,246
Japan Steel Works Ltd. (Japan) 10,000 114,553
Kansas City Southern (United States)* 1,400 50,638
Prysmian SpA (Italy) 2,200 43,236
Shaw Group, Inc. (United States)* 3,640 125,290
- --------------------------------------------------------------------------------
778,193
- --------------------------------------------------------------------------------
MATERIALS -- 16.9%
Agnico-Eagle Mines Ltd. (Canada) 2,040 113,568
Goldcorp, Inc. (Canada) 2,100 78,162
Lihir Gold Ltd. (Papua New Guinea) 29,500 82,016
Monsanto Co. (United States) 500 35,710
Newmont Mining Corp. (United States) 1,380 70,283
Syngenta AG (Switzerland) 294 81,642
Yamana Gold, Inc. (Canada) 7,000 68,950
Yara International ASA (Norway) 1,400 60,775
- --------------------------------------------------------------------------------
591,106
- --------------------------------------------------------------------------------
HEALTH CARE -- 13.1%
Bayer AG (Germany) 1,008 68,089
Bristol-Myers Squibb Co. (United States) 4,600 122,821
Novartis AG (Switzerland) 1,424 76,913
Sanofi-Aventis SA (France) 822 61,277
Tsumura & Co. (Japan) 2,100 60,982
Varian Medical Systems, Inc. (United States)* 1,260 69,716
- --------------------------------------------------------------------------------
459,798
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 11.0%
Cott Corp. (Canada)* 6,660 51,615
Davide Campari-Milano SpA (Italy) 6,250 66,818
Hain Celestial Group, Inc./The (United States)* 1,960 34,006
Kimberly-Clark Corp. (United States) 440 27,667
Koninklijke Ahold NV (Netherlands) 4,820 64,258
Sara Lee Corp. (United States) 7,450 103,779
Thai Beverage PCL (Thailand) 173,000 36,481
- --------------------------------------------------------------------------------
384,624
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 10.0%
Bezeq Israeli Telecommunication Corp. Ltd.
(Israel) 29,700 84,294
France Telecom SA (France) 2,120 50,727
Hutchison Telecommunications Hong Kong
Holdings Ltd. (Hong Kong) 286,000 49,360
Koninklijke KPN NV (Netherlands) 5,130 81,279
Millicom International Cellular SA
(United States) 420 37,443
Swisscom AG (Switzerland) 133 48,538
- --------------------------------------------------------------------------------
351,641
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 9.3%
Genting Bhd (Malaysia) 53,800 108,903
Sony Corp. (Japan) 1,700 65,094
Television Broadcasts Ltd. (Hong Kong) 20,000 96,855
TomTom NV (Netherlands)* 6,470 54,716
- --------------------------------------------------------------------------------
325,568
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 3.4%
Check Point Software Technologies Ltd.
(Israel)* 940 32,957
Nokia OYJ (Finland) 1,320 20,557
Yahoo! Japan Corp. (Japan) 180 65,554
- --------------------------------------------------------------------------------
119,068
- --------------------------------------------------------------------------------
UTILITIES -- 3.4%
Allegheny Energy, Inc. (United States) 2,400 55,200
CLP Holdings Ltd. (Hong Kong) 9,000 64,334
- --------------------------------------------------------------------------------
119,534
- --------------------------------------------------------------------------------
ENERGY -- 0.8%
PA Resources AB (Sweden)* 7,860 27,104
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 3,156,636
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 3.2%
Touchstone Institutional
Money Market Fund^ 113,361 113,361
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 94.7%
(Cost $3,271,334) $ 3,317,358
OTHER ASSETS IN EXCESS OF LIABILITIES -- 5.3% 186,019
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 3,503,377
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
PLC - Public Limited Company
107
- --------------------------------------------------------------------------------
Global Equity Fund (Continued)
- --------------------------------------------------------------------------------
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common
Stocks $ 3,156,636 $ -- $ -- $ 3,156,636
Investment
Fund 113,361 -- -- 113,361
Preferred
Stocks 47,361 -- -- 47,361
==============
$ 3,317,358
See accompanying notes to financial statements.
108
- --------------------------------------------------------------------------------
Portfolio of Investments
Global Real Estate Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 97.1% SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIALS -- 97.1%
Alexandria Real Estate Equities, Inc. REIT
(United States) 333 $ 22,511
Alstria Office REIT-AG REIT (Germany) 2,028 23,284
American Campus Communities, Inc. REIT
(United States) 890 24,617
Ascendas Real Estate Investment Trust REIT
(Singapore) 25,860 35,492
AvalonBay Communities, Inc. REIT
(United States) 750 64,762
Big Yellow Group PLC REIT
(United Kingdom)* 3,035 15,657
BioMed Realty Trust, Inc. REIT (United States) 2,105 34,817
Boston Properties, Inc. REIT (United States) 1,225 92,414
Brandywine Realty Trust REIT (United States) 1,930 23,565
BRE Properties, Inc. REIT (United States) 1,130 40,397
British Land Co. PLC REIT (United Kingdom) 7,822 57,100
Camden Property Trust REIT (United States) 425 17,693
Canadian Apartment Properties REIT (Canada) 1,470 20,768
CapitaCommercial Trust REIT (Singapore) 25,790 19,910
CapitaLand Ltd. (Singapore) 33,330 94,585
CapitaMall Trust REIT (Singapore) 12,380 15,664
CapitaMalls Asia Ltd. (Singapore)* 13,800 22,294
CFS Retail Property Trust REIT (Australia) 20,760 35,716
China Overseas Land & Investment Ltd.
(Hong Kong) 28,600 64,610
China Resources Land Ltd. (Hong Kong) 9,880 21,480
Commonwealth Property Office Fund REIT
(Australia) 24,370 20,237
Corio NV REIT (Netherlands) 1,041 69,510
Corporate Office Properties Trust SBI MD REIT
(United States) 510 20,466
Crombie Real Estate Investment Trust REIT
(Canada) 945 11,165
Derwent London PLC REIT (United Kingdom) 1,290 26,738
Developers Diversified Realty Corp. REIT
(United States) 3,340 40,648
Development Securities PLC (United Kingdom) 1,465 6,069
Dexus Property Group REIT (Australia) 52,540 39,049
Digital Realty Trust, Inc. REIT (United States) 1,033 55,989
Douglas Emmett, Inc. REIT (United States) 1,600 24,592
Duke Realty Corp. REIT (United States) 4,880 60,512
Equity Residential REIT (United States) 2,370 92,785
Eurocommercial Properties NV REIT
(Netherlands) 848 34,076
Fukuoka REIT Co. REIT (Japan) 2 10,664
General Growth Properties, Inc. REIT
(United States) 600 9,654
Glimcher Realty Trust REIT (United States) 2,825 14,323
GPT Group REIT (Australia) 98,640 52,042
Great Portland Estates PLC REIT
(United Kingdom) 2,150 10,257
Hammerson PLC REIT (United Kingdom) 4,807 28,694
HCP, Inc. REIT (United States) 2,540 83,820
Health Care REIT, Inc. REIT (United States) 1,010 45,682
Helical Bar PLC (United Kingdom) 3,220 16,509
Henderson Land Development Co., Ltd.
(Hong Kong) 5,430 38,255
Hongkong Land Holdings Ltd. (Hong Kong) 14,340 72,704
Host Hotels & Resorts, Inc. REIT (United States) 3,283 48,096
Hufvudstaden AB - Class A (Sweden) 2,352 20,114
Japan Excellent, Inc. REIT (Japan) 3 14,311
Japan Real Estate Investment Corp. REIT
(Japan) 2 17,049
Kenedix Realty Investment Corp. REIT (Japan) 4 10,743
Kerry Properties Ltd. (Hong Kong) 15,300 82,075
Kimco Realty Corp. REIT (United States) 3,985 62,325
Klepierre REIT (France) 919 36,097
Land Securities Group PLC REIT
(United Kingdom) 4,590 47,220
LaSalle Hotel Properties REIT (United States) 1,215 28,310
Macerich Co. REIT (United States) 979 37,505
Mack-Cali Realty Corp. REIT (United States) 995 35,074
Mitsubishi Estate Co., Ltd. (Japan) 8,000 130,916
Mitsui Fudosan Co., Ltd. (Japan) 5,000 84,871
Morguard Real Estate Investment Trust REIT
(Canada) 3,515 47,204
Nationwide Health Properties, Inc. REIT
(United States) 1,010 35,501
Nippon Building Fund, Inc. REIT (Japan) 2 17,220
Norwegian Property ASA (Norway)* 17,000 35,471
ProLogis REIT (United States) 1,962 25,898
ProLogis European Properties (Luxembourg)* 1,600 11,266
Public Storage REIT (United States) 965 88,770
Quintain Estates & Development PLC
(United Kingdom)* 6,660 5,735
Regency Centers Corp. REIT (United States) 960 35,971
RioCan Real Estate Investment Trust REIT
(Canada) 4,450 80,965
Segro PLC REIT (United Kingdom) 4,255 20,634
Shenzhen Investment Ltd. (Hong Kong) 71,000 26,336
Shimao Property Holdings Ltd. (Hong Kong) 8,370 15,394
Simon Property Group, Inc. REIT
(United States) 1,926 161,591
Sino Land Co., Ltd. (Hong Kong) 25,320 49,634
SL Green Realty Corp. REIT (United States) 910 52,116
Societe de la Tour Eiffel REIT (France) 172 14,406
Sumitomo Realty & Development Co., Ltd.
(Japan) 3,425 65,170
Sun Hung Kai Properties Ltd. (Hong Kong) 16,530 248,667
Swire Pacific Ltd. - Class A (Hong Kong) 1,780 21,413
Unibail-Rodamco SE REIT (France) 1,089 220,639
United Urban Investment Corp. REIT (Japan) 3 17,263
Ventas, Inc. REIT (United States) 1,640 77,867
Vornado Realty Trust REIT (United States) 980 74,186
Wereldhave NV REIT (Netherlands) 154 14,760
Westfield Group REIT (Australia) 21,400 236,807
Wharf Holdings Ltd. (Hong Kong) 12,450 70,154
Wihlborgs Fastigheter AB (Sweden) 1,041 21,985
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 4,079,505
- --------------------------------------------------------------------------------
109
- --------------------------------------------------------------------------------
Global Real Estate Fund (Continued)
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 4.1%
Touchstone Institutional
Money Market Fund^ 174,435 $ 174,435
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 101.2%
(Cost $4,063,395) $ 4,253,940
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.2%) (48,826)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 4,205,114
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
PLC - Public Limited Company
REIT - Real Estate Investment Trust
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common
Stocks $ 4,011,533 $ 67,972 $ -- $ 4,079,505
Investment
Fund 174,435 -- -- 174,435
==============
$ 4,253,940
See accompanying notes to financial statements.
110
- --------------------------------------------------------------------------------
Portfolio of Investments
Healthcare and Biotechnology Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 94.3% SHARES VALUE
- --------------------------------------------------------------------------------
HEALTH CARE -- 94.3%
Abbott Laboratories 28,960 $ 1,525,613
Acorda Therapeutics, Inc.* 17,380 594,396
Aetna, Inc. 35,190 1,235,521
Alexion Pharmaceuticals, Inc.* 19,130 1,040,098
Align Technology, Inc.* 14,370 277,916
Allergan, Inc. 7,480 488,594
Allscripts-Misys Healthcare Solutions, Inc.* + 12,240 239,414
AmerisourceBergen Corp. + 39,920 1,154,486
Bruker Corp.* 14,750 216,088
Cardinal Health, Inc. 10,150 365,705
Cerner Corp.* + 2,060 175,224
Charles River Laboratories International, Inc.* 10,100 397,031
CIGNA Corp. 18,890 690,996
Community Health Systems, Inc.* 7,480 276,236
DaVita, Inc.* 7,070 448,238
Dr. Reddy's Laboratories Ltd. ADR + 10,260 289,640
Edwards Lifesciences Corp.* 1,950 192,816
Emergency Medical Services Corp. - Class A* 11,370 642,974
Express Scripts, Inc.* 5,800 590,208
Gilead Sciences, Inc.* 33,280 1,513,574
Healthsouth Corp.* + 14,450 270,215
Henry Schein, Inc.* 3,350 197,315
Hospira, Inc.* 12,040 682,066
Human Genome Sciences, Inc.* + 26,160 790,032
ICON PLC ADR* 32,310 852,984
Impax Laboratories, Inc.* 13,800 246,744
InterMune, Inc.* + 4,000 178,280
Intuitive Surgical, Inc.* 1,380 480,419
LHC Group, Inc.* + 9,680 324,570
McKesson Corp. 7,070 464,640
Merck & Co., Inc. 57,970 2,165,180
Mindray Medical International Ltd. ADR + 4,400 160,248
Novartis AG ADR 10,110 546,951
Pfizer, Inc. 165,169 2,832,648
Pharmasset, Inc.* 6,160 165,088
PSS World Medical, Inc.* 10,110 237,686
Psychiatric Solutions, Inc.* + 23,310 694,638
Quality Systems, Inc. 2,640 162,202
Salix Pharmaceuticals Ltd.* 9,930 369,893
Shire PLC ADR 12,350 814,606
SXC Health Solutions Corp.* 4,480 301,414
Tenet Healthcare Corp.* + 76,170 435,692
Teva Pharmaceutical Industries Ltd. ADR 21,960 1,385,237
Thermo Fisher Scientific, Inc.* 6,900 354,936
United Therapeutics Corp.* 23,390 1,294,169
UnitedHealth Group, Inc. 28,590 934,035
Waters Corp.* + 5,430 366,742
Watson Pharmaceuticals, Inc.* 11,790 492,468
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 30,555,866
- --------------------------------------------------------------------------------
FOREIGN COMMON STOCKS -- 4.7%
HEALTH CARE -- 4.7%
Alcon, Inc. 5,145 831,226
Biovail Corp. + 23,690 397,281
Hikma Pharmaceuticals PLC 20,370 195,339
Protalix BioTherapeutics, Inc.* + 15,590 102,271
- --------------------------------------------------------------------------------
TOTAL FOREIGN COMMON STOCKS $ 1,526,117
- --------------------------------------------------------------------------------
INVESTMENT FUNDS -- 13.5%
Invesco AIM Liquid Assets Portfolio** 4,347,725 4,347,725
Touchstone Institutional
Money Market Fund^ 20,985 20,985
- --------------------------------------------------------------------------------
TOTAL INVESTMENT FUNDS $ 4,368,710
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 112.5%
(Cost $30,466,460) $ 36,450,693
LIABILITIES IN EXCESS OF OTHER ASSETS -- (12.5%) (4,060,855)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 32,389,838
================================================================================
* Non-income producing security.
+ All or a portion of the security is on loan. The total value of the
securities on loan as of March 31, 2010, was $4,206,975.
** Represents collateral for securities loaned.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
ADR - American Depositary Receipt
PLC - Public Limited Company
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common
Stocks $ 32,081,983 $ -- $ -- $ 32,081,983
Investment
Fund 4,368,710 -- -- 4,368,710
==============
$ 36,450,693
See accompanying notes to financial statements.
111
- --------------------------------------------------------------------------------
Portfolio of Investments
Intermediate Fixed Income Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 54.1%
FINANCIALS -- 22.1%
$ 75,000 ACE Ina Holdings, Inc., 5.700%, 2/15/17 $ 81,021
370,000 Allstate Life Global Funding Trusts,
5.375%, 4/30/13 403,059
25,000 American Express Bank FSB,
5.500%, 4/16/13 26,774
200,000 American Express Co., 7.000%, 3/19/18 227,158
150,000 American Express Co., 4.875%, 7/15/13 158,214
210,000 American International Group, Inc.,
5.450%, 5/18/17 193,188
125,000 Ameriprise Financial, Inc.,
5.650%, 11/15/15 136,022
275,000 Bank of America Corp., 7.400%, 1/15/11 287,759
200,000 Bank of America Corp., 5.750%, 12/1/17 205,055
30,000 Bank of America Corp., 5.750%, 8/15/16 30,734
200,000 Bank of America Corp., Ser MTNL,
5.650%, 5/1/18 202,334
45,000 Bank One Corp., 5.900%, 11/15/11 48,010
200,000 Barclays Bank PLC, 5.450%, 9/12/12 215,598
40,000 Barclays Bank PLC, 6.750%, 5/22/19 44,252
500,000 Barclays Bank PLC, Ser 1, 5.000%, 9/22/16 513,935
915,000 BB&T Corp., 6.850%, 4/30/19 1,040,261
325,000 BB&T Corp., 4.750%, 10/1/12 342,719
150,000 Bear Stearns Cos. LLC, 5.700%, 11/15/14 163,351
30,000 Bear Stearns Cos. LLC, 6.400%, 10/2/17 33,142
500,000 Berkshire Hathaway Finance Corp.,
5.000%, 8/15/13 546,040
375,000 Berkshire Hathaway, Inc., 3.200%, 2/11/15 378,201
1,500,000 Boston Properties LP, 5.875%, 10/15/19 1,557,156
15,000 Capital One Financial Corp.,
4.800%, 2/21/12 15,579
350,000 Capital One Financial Corp.,
5.700%, 9/15/11 365,802
250,000 Citigroup, Inc., 6.125%, 11/21/17 257,168
175,000 Citigroup, Inc., 5.850%, 8/2/16 179,472
500,000 Citigroup, Inc., 2.875%, 12/9/11 515,916
545,000 Citigroup, Inc., 5.000%, 9/15/14 544,232
40,000 CME Group, Inc., 5.750%, 2/15/14 43,913
200,000 Deutsche Bank AG, 6.000%, 9/1/17 219,289
475,000 Fifth Third Bancorp, 6.250%, 5/1/13 510,835
175,000 General Electric Capital Corp.,
5.625%, 5/1/18 182,877
275,000 General Electric Capital Corp.,
5.400%, 2/15/17 287,685
1,900,000 General Electric Capital Corp., Ser MTNA,
5.450%, 1/15/13 2,056,108
400,000 General Electric Capital Corp., Ser MTNA,
6.000%, 6/15/12 433,526
110,000 Genworth Financial, Inc., 5.750%, 6/15/14 112,364
50,000 GMAC, Inc., 2.200%, 12/19/12 50,751
315,000 Goldman Sachs Group, Inc.,
5.150%, 1/15/14 334,106
35,000 Goldman Sachs Group, Inc.,
6.150%, 4/1/18 37,033
500,000 Goldman Sachs Group, Inc.,
5.625%, 1/15/17 512,352
255,000 HCP, Inc., 5.650%, 12/15/13 266,554
300,000 HSBC Finance Corp., 5.500%, 1/19/16 315,136
185,000 HSBC Finance Corp., 5.000%, 6/30/15 192,656
500,000 Jefferies Group, Inc., 8.500%, 7/15/19 554,672
385,000 JPMorgan Chase & Co., 5.125%, 9/15/14 406,714
275,000 JPMorgan Chase & Co., 5.375%, 10/1/12 297,582
230,000 KeyBank NA, 3.200%, 6/15/12 238,862
100,000 KeyBank NA, 5.800%, 7/1/14 102,274
530,000 Keycorp, 6.500%, 5/14/13 565,992
470,000 Kimco Realty Corp., 5.700%, 5/1/17 471,365
85,000 M&I Marshall & Ilsley Bank,
4.850%, 6/16/15 75,588
215,000 Merrill Lynch & Co., Inc., 6.400%, 8/28/17 226,594
75,000 Merrill Lynch & Co., Inc., 6.150%, 4/25/13 80,753
400,000 Merrill Lynch & Co., Inc., 5.450%, 7/15/14 418,342
170,000 MetLife, Inc., 6.125%, 12/1/11 181,876
20,000 MetLife, Inc., 5.000%, 6/15/15 20,971
125,000 Morgan Stanley, 5.500%, 1/26/20 122,267
170,000 Morgan Stanley, 4.750%, 4/1/14 173,583
100,000 National Australia Bank Ltd., Ser A,
8.600%, 5/19/10 101,002
1,200,000 PNC Funding Corp., 5.625%, 2/1/17 1,238,200
290,000 PNC Funding Corp., 2.300%, 6/22/12 296,579
125,000 Principal Life Income Funding Trusts,
5.100%, 4/15/14 130,987
535,000 ProLogis, 7.625%, 8/15/14 584,964
30,000 Prudential Financial, Inc., 4.750%, 9/17/15 30,878
125,000 Prudential Financial, Inc., Ser MTNB,
4.750%, 4/1/14 129,073
535,000 Regency Centers LP, 6.750%, 1/15/12 563,707
25,000 Simon Property Group LP,
5.750%, 12/1/15 26,447
300,000 SunTrust Bank, Inc., 6.375%, 4/1/11 313,191
200,000 SunTrust Banks, Inc., 5.250%, 11/5/12 210,941
1,000,000 Travelers Cos., Inc., 5.900%, 6/2/19 1,093,697
100,000 Travelers Cos., Inc., 5.500%, 12/1/15 108,877
250,000 Union Planters Corp., 4.375%, 12/1/10 251,255
185,000 Wachovia Bank NA, 5.000%, 8/15/15 191,872
375,000 Wachovia Corp., 5.750%, 2/1/18 398,652
170,000 Wells Fargo & Co., 4.950%, 10/16/13 179,594
- --------------------------------------------------------------------------------
24,054,688
- --------------------------------------------------------------------------------
UTILITIES -- 8.6%
20,000 Arizona Public Service Co.,
8.750%, 3/1/19 24,238
1,300,000 Boardwalk Pipelines LLC,
5.750%, 9/15/19 1,342,970
150,000 Consolidated Edison Co. of NY, Ser 08-A,
5.850%, 4/1/18 164,163
112
- --------------------------------------------------------------------------------
Intermediate Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 54.1% (CONTINUED)
$ 930,000 Consolidated Natural Gas Co., Ser A,
5.000%, 12/1/14 $ 991,022
100,000 Detroit Edison Co., Ser G,
5.600%, 6/15/18 105,823
740,000 DTE Energy Co., 6.350%, 6/1/16 800,016
425,000 Duke Energy Carolinas , 6.250%, 1/15/12 461,204
100,000 Duke Energy Carolinas LLC,
5.300%, 10/1/15 109,384
860,000 Energy Transfer Partners LP,
5.950%, 2/1/15 934,362
650,000 Enterprise Products Operating LLC, Ser O,
9.750%, 1/31/14 789,292
25,000 Exelon Corp., 4.900%, 6/15/15 26,056
520,000 Exelon Generation Co. LLC,
5.200%, 10/1/19 525,310
100,000 Florida Power Corp., 5.100%, 12/1/15 108,618
250,000 FPL Group Capital, Inc., 5.625%, 9/1/11 264,172
115,000 Georgia Power Co., Ser Z,
5.250%, 12/15/15 125,857
125,000 KeySpan Corp., 7.625%, 11/15/10 130,166
660,000 Metropolitan Edison Co., 7.700%, 1/15/19 768,267
310,000 Midamerican Energy Holdings Co., Ser D,
5.000%, 2/15/14 328,818
20,000 Midamerican Energy Holdings Co.,
5.750%, 4/1/18 21,135
110,000 National Rural Utilities Cooperative
Finance Corp., Ser MTNC,
7.250%, 3/1/12 121,001
125,000 NSTAR Electric Co., 4.875%, 4/15/14 133,285
175,000 PacifiCorp, 6.900%, 11/15/11 190,386
180,000 Public Service Co. of Colorado, Ser 10,
7.875%, 10/1/12 206,118
140,000 Public Service Electric & Gas Co.,
Ser MTNC, 5.375%, 9/1/13 153,629
130,000 Southern Cal Edison, Ser 05-A,
5.000%, 1/15/16 140,746
260,000 TransCanada PipeLines, 6.500%, 8/15/18 294,654
100,000 TransCanada PipeLines Ltd.,
4.875%, 1/15/15 107,083
- --------------------------------------------------------------------------------
9,367,775
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 5.5%
275,000 Archer-Daniels-Midland Co.,
5.450%, 3/15/18 295,932
200,000 Avon Products, Inc., 4.200%, 7/15/18 193,197
150,000 Bottling Group LLC, 4.625%, 11/15/12 161,038
100,000 Coca-Cola Co., 5.750%, 3/15/11 104,676
275,000 Coca-Cola Co. , 5.350%, 11/15/17 302,540
200,000 Coca-Cola Enterprises, Inc.,
7.125%, 8/1/17 234,838
25,000 ConAgra Foods, Inc., 7.000%, 4/15/19 28,831
25,000 CVS Caremark Corp., 6.600%, 3/15/19 27,950
690,000 Dr Pepper Snapple Group, Inc.,
6.820%, 5/1/18 788,262
35,000 General Mills, Inc., 5.650%, 2/15/19 37,542
500,000 General Mills, Inc., 5.200%, 3/17/15 542,789
150,000 Kimberly-Clark Corp., 6.125%, 8/1/17 169,008
25,000 Kraft Foods, Inc., 6.500%, 8/11/17 28,004
900,000 Kraft Foods, Inc., 6.250%, 6/1/12 984,937
30,000 Kroger Co., 6.400%, 8/15/17 33,353
200,000 PepsiCo, Inc., 5.150%, 5/15/12 215,591
40,000 Procter & Gamble Co., 4.700%, 2/15/19 41,022
921,000 Safeway, Inc., 6.250%, 3/15/14 1,023,732
20,000 Safeway, Inc., 5.800%, 8/15/12 21,811
500,000 Sara Lee Corp., 3.875%, 6/15/13 520,062
120,000 Sysco Corp., 4.200%, 2/12/13 127,179
150,000 Unilever Capital Corp., 7.125%, 11/1/10 155,688
- --------------------------------------------------------------------------------
6,037,982
- --------------------------------------------------------------------------------
INDUSTRIALS -- 4.1%
385,000 3M Co., 4.375%, 8/15/13 412,985
25,000 Boeing Capital Corp., 6.100%, 3/1/11 26,239
385,000 Boeing Capital Corp., 5.800%, 1/15/13 423,715
250,000 Canadian National Railway Co.,
4.400%, 3/15/13 264,051
150,000 Caterpillar Financial Services Corp.,
Ser MTNF, 4.600%, 1/15/14 159,705
195,000 Caterpillar Financial Services Corp.,
7.150%, 2/15/19 229,534
130,000 Dover Corp., 4.875%, 10/15/15 141,181
150,000 General Dynamics Corp., 4.250%, 5/15/13 160,216
275,000 General Electric Co., 5.250%, 12/6/17 288,433
150,000 Honeywell International, Inc.,
6.125%, 11/1/11 162,206
150,000 John Deere Capital Corp.,
7.000%, 3/15/12 165,910
500,000 Northrop Grumman Corp.,
3.700%, 8/1/14 511,624
140,000 Parker Hannifin Corp., 5.500%, 5/15/18 148,611
500,000 Southwest Airlines Co., 6.500%, 3/1/12 530,892
250,000 Stanford University, 4.750%, 5/1/19 259,703
150,000 Toyota Motor Credit Corp.,
4.350%, 12/15/10 153,568
250,000 United Parcel Service, Inc.,
5.500%, 1/15/18 273,514
100,000 United Technologies Corp.,
4.875%, 5/1/15 108,472
- --------------------------------------------------------------------------------
4,420,559
- --------------------------------------------------------------------------------
ENERGY -- 3.2%
730,000 Anadarko Petroleum Corp.,
5.950%, 9/15/16 795,314
225,000 Apache Corp., 6.250%, 4/15/12 245,680
225,000 Conoco Funding Co., 6.350%, 10/15/11 242,711
500,000 ConocoPhillips, 4.400%, 5/15/13 530,705
650,000 Marathon Oil Corp., 7.500%, 2/15/19 763,493
113
- --------------------------------------------------------------------------------
Intermediate Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 54.1% (CONTINUED)
$ 425,000 Occidental Petroleum Corp.,
4.125%, 6/1/16 $ 437,872
150,000 SeaRiver Maritime, Inc., 0.000%, 9/1/12 141,093
320,000 Shell International Finance BV,
5.625%, 6/27/11 338,885
25,000 Valero Energy Corp., 9.375%, 3/15/19 29,763
- --------------------------------------------------------------------------------
3,525,516
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 2.5%
150,000 Cisco Systems, Inc., 5.500%, 2/22/16 167,147
40,000 Cisco Systems, Inc., 4.450%, 1/15/20 39,778
40,000 Dell, Inc., 5.875%, 6/15/19 43,286
500,000 Hewlett-Packard Co., 4.500%, 3/1/13 535,349
200,000 IBM Corp., 5.700%, 9/14/17 221,637
160,000 Oracle Corp., 3.750%, 7/8/14 166,968
235,000 Oracle Corp., 4.950%, 4/15/13 255,298
150,000 Pitney Bowes, Inc., 3.875%, 6/15/13 157,619
1,000,000 Xerox Corp., 6.400%, 3/15/16 1,097,518
- --------------------------------------------------------------------------------
2,684,600
- --------------------------------------------------------------------------------
MATERIALS -- 2.2%
350,000 Alcoa, Inc., 6.000%, 7/15/13 373,335
740,000 Dow Chemical Co., 5.900%, 2/15/15 801,142
400,000 Dow Chemical Co., 4.850%, 8/15/12 423,007
500,000 EI du Pont de Nemours & Co.,
5.000%, 1/15/13 539,897
200,000 Praxair, Inc., 5.375%, 11/1/16 216,484
- --------------------------------------------------------------------------------
2,353,865
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.2%
110,000 AT&T, Inc., 5.625%, 6/15/16 120,595
75,000 AT&T, Inc., 5.875%, 8/15/12 81,980
145,000 AT&T, Inc., 5.500%, 2/1/18 153,939
140,000 BellSouth Corp., 5.200%, 9/15/14 150,844
200,000 France Telecom SA, 7.750%, 3/1/11 212,337
225,000 New Cingular Wireless Services, Inc.,
8.125%, 5/1/12 253,905
305,000 Verizon Communications, Inc.,
5.500%, 2/15/18 323,263
175,000 Verizon Global Funding Corp.,
4.375%, 6/1/13 185,819
690,000 Vodafone Group PLC, 3.375%, 11/24/15 673,180
100,000 Vodafone Group PLC, 5.500%, 6/15/11 104,858
100,000 Vodafone Group PLC, 5.625%, 2/27/17 107,007
- --------------------------------------------------------------------------------
2,367,727
- --------------------------------------------------------------------------------
HEALTH CARE -- 1.9%
205,000 Abbott Laboratories, 5.875%, 5/15/16 231,786
150,000 Abbott Laboratories, 5.600%, 11/30/17 165,145
100,000 Aetna, Inc., 6.000%, 6/15/16 109,636
175,000 AstraZeneca plc, 5.900%, 9/15/17 195,462
120,000 Baxter International, Inc., 5.900%, 9/1/16 135,803
150,000 Genentech, Inc., 4.750%, 7/15/15 160,144
230,000 Johnson & Johnson, 5.150%, 8/15/12 250,676
100,000 Medtronic, Inc., Ser B, 4.750%, 9/15/15 108,179
300,000 Pfizer, Inc., 6.200%, 3/15/19 338,844
115,000 UnitedHealth Group, Inc.,
5.000%, 8/15/14 121,293
25,000 WellPoint, Inc., 5.000%, 1/15/11 25,734
125,000 Wyeth, 5.450%, 4/1/17 136,814
120,000 Wyeth, 5.500%, 2/1/14 132,378
- --------------------------------------------------------------------------------
2,111,894
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 1.8%
20,000 Comcast Corp., 5.875%, 2/15/18 21,375
150,000 Costco Wholesale Corp., 5.500%, 3/15/17 164,605
150,000 Emerson Electric Co., 5.000%, 12/15/14 162,963
20,000 Johnson Controls, Inc., 5.250%, 1/15/11 20,667
100,000 Lowe's Cos., Inc., 5.400%, 10/15/16 108,893
175,000 McDonald's Corp., 6.000%, 4/15/11 184,259
125,000 Omnicom Group, Inc., 5.900%, 4/15/16 135,281
20,000 Staples, Inc., 7.750%, 4/1/11 21,221
5,000 Target Corp., 6.350%, 1/15/11 5,233
185,000 Target Corp., 5.875%, 7/15/16 209,703
30,000 Time Warner Cable, Inc., 6.200%, 7/1/13 33,105
20,000 Time Warner Cable, Inc., 8.250%, 4/1/19 24,202
150,000 Wal-Mart Stores, Inc., 4.500%, 7/1/15 160,928
350,000 Wal-Mart Stores, Inc., 4.250%, 4/15/13 373,542
25,000 Wal-Mart Stores, Inc., 5.800%, 2/15/18 27,900
150,000 Walt Disney Co., Ser MTNB,
6.375%, 3/1/12 164,387
180,000 Walt Disney Co., 5.500%, 3/15/19 195,466
- --------------------------------------------------------------------------------
2,013,730
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS $ 58,938,336
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 30.6%
500,000 U.S. Treasury Bond, 11.250%, 2/15/15 701,875
800,000 U.S. Treasury Bond, 8.750%, 5/15/17 1,081,250
600,000 U.S. Treasury Bond, 4.500%, 8/15/39 579,375
2,900,799 U.S. Treasury Inflation Indexed Note,
2.375%, 1/15/17 3,132,184
5,100,000 U.S. Treasury Note, 5.125%, 6/30/11 5,390,062
5,000,000 U.S. Treasury Note, 1.000%, 7/31/11 5,025,780
2,555,000 U.S. Treasury Note, 1.000%, 9/30/11 2,565,279
250,000 U.S. Treasury Note, 1.375%, 4/15/12 251,738
2,000,000 U.S. Treasury Note, 1.500%, 7/15/12 2,015,624
250,000 U.S. Treasury Note, 4.125%, 8/31/12 267,188
500,000 U.S. Treasury Note, 2.750%, 10/31/13 514,492
1,500,000 U.S. Treasury Note, 1.875%, 2/28/14 1,487,343
170,000 U.S. Treasury Note, 1.750%, 3/31/14 167,450
1,400,000 U.S. Treasury Note, 2.625%, 6/30/14 1,420,672
5,500,000 U.S. Treasury Note, 2.375%, 2/28/15 5,462,215
675,000 U.S. Treasury Note, 3.625%, 8/15/19 666,773
2,440,380 United States Treasury Inflation
Indexed Bond, 3.375%, 1/15/12 2,611,778
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS $ 33,341,078
- --------------------------------------------------------------------------------
114
- --------------------------------------------------------------------------------
Intermediate Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 9.1%
$ 2,500,000 FFCB, 1.750%, 2/21/13 $ 2,493,990
340,000 FFCB, 5.125%, 8/25/16 376,814
1,775,000 FHLB, 3.625%, 10/18/13 1,874,686
465,000 FHLB, Ser VB15, 5.000%, 12/21/15 510,398
275,000 FHLB, Ser 656, 5.375%, 5/18/16 305,591
555,000 FHLBC , 1.500%, 1/16/13 554,013
800,000 FHLMC, 1.800%, 3/25/13 795,368
900,000 FHLMC, 4.125%, 12/21/12 957,783
400,000 FHLMC, 4.500%, 1/15/14 432,968
400,000 FHLMC, 5.125%, 10/18/16 439,052
250,000 FNMA, 2.500%, 5/15/14 251,422
150,000 FNMA, 4.125%, 4/15/14 160,551
500,000 FNMA, 4.375%, 9/15/12 534,933
125,000 FNMA, 4.625%, 10/15/13 136,052
150,000 Tennessee Valley Auth., Ser C,
4.750%, 8/1/13 162,984
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS $ 9,986,605
- --------------------------------------------------------------------------------
SOVEREIGN GOVERNMENT OBLIGATIONS -- 3.4%
460,000 African Development Bank, Ser GLOB,
2.750%, 2/25/11 469,039
100,000 Asian Development Bank, 4.500%, 9/4/12 106,527
200,000 European Investment Bank,
3.375%, 6/12/13 208,443
200,000 European Investment Bank,
4.625%, 5/15/14 216,580
250,000 Export-Import Bank of Korea,
5.500%, 10/17/12 266,857
180,000 Hydro Quebec, Ser IU, 7.500%, 4/1/16 217,284
150,000 Inter-American Development Bank,
4.375%, 9/20/12 160,591
125,000 Korea Development Bank,
5.500%, 11/13/12 133,496
110,000 Korea Electric Power Corp.,
7.750%, 4/1/13 124,568
200,000 Malaysia , 7.500%, 7/15/11 215,161
350,000 Oesterreichische Kontrollbank AG,
3.125%, 10/14/11 361,402
250,000 Province of Ontario Canada,
4.750%, 1/19/16 268,805
200,000 Province of Quebec Canada,
4.600%, 5/26/15 214,537
500,000 Republic of Chile, 5.500%, 1/15/13 545,500
225,000 Republic of Korea, 4.875%, 9/22/14 239,010
- --------------------------------------------------------------------------------
TOTAL SOVEREIGN GOVERNMENT
OBLIGATIONS $ 3,747,800
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 2.1%
2,238,710 Touchstone Institutional
Money Market Fund^ $ 2,238,710
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 99.3%
(Cost $105,844,486) $ 108,252,529
OTHER ASSETS IN
EXCESS OF LIABILITIES -- 0.7% 709,154
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 108,961,683
================================================================================
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
FFCB - Federal Farm Credit Bank
FNMA - Federal National Mortgage Association
FHLB - Federal Home Loan Bank
FHLMC - Federal Home Loan Mortgage Corp.
PLC - Public Limited Company
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Corporate
Bonds $ -- $ 58,938,336 $ -- $ 58,938,336
U.S. Treasury
Obligations -- 33,341,078 -- 33,341,078
U.S. Government
Agency
Obligations -- 9,986,605 -- 9,986,605
Sovereign
Government
Obligations -- 3,747,800 -- 3,747,800
Investment
Fund 2,238,710 -- -- 2,238,710
==============
$ 108,252,529
See accompanying notes to financial statements.
115
- --------------------------------------------------------------------------------
Portfolio of Investments
International Fixed Income Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
SOVEREIGN GOVERNMENT OBLIGATIONS -- 62.1%
$ 220,000 Australia Government Bond, Ser 125,
6.250%, 6/15/14 $ 207,959
200,000 Austria Government Bond, 144a,
5.000%, 7/15/12 293,137
500,000 Belgium Government Bond, Ser 56,
3.500%, 3/28/15 710,887
350,000 Bundesobligation, Ser 148,
3.500%, 4/8/11 486,464
100,000 Bundesrepublik Deutschland, Ser 03,
3.750%, 7/4/13 144,683
200,000 Bundesrepublik Deutschland, Ser 05,
4.000%, 1/4/37 276,275
150,000 Bundesrepublik Deutschland, Ser 03,
4.750%, 7/4/34 230,566
270,000 Canadian Government Bond,
5.000%, 6/1/14 289,820
200,000 Finland Government Bond,
5.375%, 7/4/13 302,284
250,000 France Government Bond OAT,
5.000%, 10/25/16 382,775
100,000 Hellenic Republic Government Bond,
Ser 5Y, 4.000%, 8/20/13 126,175
75,000 Hellenic Republic Government Bond,
Ser 30YR, 4.500%, 9/20/37 74,266
1,100,000 Kingdom of Norway, 5.000%, 5/15/15 200,982
200,000 Netherlands Government Bond,
4.000%, 1/15/11 277,377
150,000 United Kingdom Gilt, 4.750%, 12/7/38 236,613
150,000 United Kingdom Gilt, 5.000%, 9/7/14 251,674
- --------------------------------------------------------------------------------
TOTAL SOVEREIGN GOVERNMENT
OBLIGATIONS $ 4,491,937
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 14.0%
FINANCIALS -- 14.0%
60,000 Bank Nederlandse Gemeenten,
6.250%, 1/20/14 54,993
30,000,000 Japan Finance Organization for
Municipalities, Ser INTL,
1.550%, 2/21/12 328,991
250,000 Kreditanstalt fuer Wiederaufbau,
3.625%, 1/20/20 344,027
100,000 Kreditanstalt fuer Wiederaufbau, Ser DTE,
3.250%, 6/27/13 143,945
100,000 Swedbank Hypotek AB, 2.500%, 1/21/13 136,868
- --------------------------------------------------------------------------------
1,008,824
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS $ 1,008,824
- --------------------------------------------------------------------------------
FOREIGN BONDS -- 7.8%
100,000 China Petroleum & Chemical Corp.,
Ser SINO, 0.000%, 4/24/14 14,167
30,000,000 Japan Expressway Holding and Debt
Repayment Agency, 2.850%, 3/18/39 326,169
100,000 Rafflesia Capital Ltd., 1.250%, 10/4/11 (a) 122,880
100,000 Seadrill Ltd., 3.625%, 11/8/12 100,375
- --------------------------------------------------------------------------------
TOTAL FOREIGN BONDS $ 563,591
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 8.3%
597,817 Touchstone Institutional
Money Market Fund^ $ 597,817
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 92.2%
(Cost $6,986,703) $ 6,662,169
OTHER ASSETS IN
EXCESS OF LIABILITIES -- 7.8% 565,627
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 7,227,796
================================================================================
(a) Variable rate security - the rate reflected is the rate in effect as of
March 31, 2010.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
144a - This is a restricted security that was sold in a transaction exempt from
Rule 144a of the Securities Act of 1933. This security may be sold in
transactions exempt from registration, normally to qualified
institutional buyers. At March 31, 2010, these securities were valued at
$293,137 or 4.1% of net assets.
116
- --------------------------------------------------------------------------------
International Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Sovereign
Government
Obligations $ -- $ 4,491,937 $ -- $ 4,491,937
Corporate
Bonds -- 1,008,824 -- 1,008,824
Investment
Fund 597,817 -- -- 597,817
Foreign Bonds -- 563,591 -- 563,591
==============
$ 6,662,169
LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
OTHER FINANCIAL INSTRUMENTS*
Forward
Currency
Contracts $ -- $ 101,008 $ -- $ 101,008
* Other financial instruments are derivative instruments not reflected in total
investments. Amounts shown represent unrealized appreciation.
See accompanying notes to financial statements.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS
CONTRACT TO UNREALIZED
----------------------------------------- APPRECIATION/
VALUE DATE RECEIVE DELIVER (DEPRECIATION)
- --------------------------------------------------------------------------------
04/28/2010 USD 273,600 AUD 300,000 $ (1,040)
04/28/2010 USD 301,473 CAD 306,000 67
04/28/2010 USD 4,175,280 EUR 3,035,000 74,806
04/28/2010 USD 645,490 GBP 425,000 510
04/28/2010 USD 697,895 JPY 63,096,000 22,786
04/28/2010 USD 204,825 NOK 1,195,300 3,879
------------
$ 101,008
============
117
- --------------------------------------------------------------------------------
Portfolio of Investments
International Growth Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 99.1% SHARES VALUE
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 22.5%
Accenture PLC - Class A (Ireland) 20,508 $ 860,310
Amdocs Ltd. (Guernsey)* 13,060 393,237
ARM Holdings PLC ADR (United Kingdom) + 68,000 726,920
Baidu, Inc. ADR (China)* 1,073 640,581
Canon, Inc. ADR (Japan) 17,832 824,017
Infosys Technologies Ltd. ADR (India) + 13,523 795,828
Kyocera Corp. ADR (Japan) 3,400 330,548
Logitech International SA (Switzerland)* + 29,000 473,860
Marvell Technology Group Ltd. (Bermuda)* 36,000 733,680
Nidec Corp. ADR (Japan) 35,859 960,304
Nokia OYJ ADR (Finland) + 46,950 729,603
SAP AG ADR (Germany) 12,992 625,825
- --------------------------------------------------------------------------------
8,094,713
- --------------------------------------------------------------------------------
HEALTH CARE -- 16.0%
Alcon, Inc. (Switzerland) 5,889 951,427
AstraZeneca PLC ADR (United Kingdom) + 12,700 567,944
Bayer AG ADR (Germany) 6,032 408,065
Covidien PLC (Ireland) 13,250 666,210
Fresenius Medical Care AG & Co. KGaA ADR
(Germany) 8,175 459,108
GlaxoSmithKline PLC ADR (United Kingdom) 9,264 356,849
Novartis AG ADR (Switzerland) + 13,377 723,696
Novo Nordisk A/S ADR (Denmark) + 8,833 681,201
Smith & Nephew PLC ADR
(United Kingdom) + 9,300 465,558
Teva Pharmaceutical Industries Ltd. ADR
(Israel) 7,600 479,408
- --------------------------------------------------------------------------------
5,759,466
- --------------------------------------------------------------------------------
FINANCIALS -- 11.4%
Allianz SE ADR (Germany) 45,835 572,938
AXA SA ADR (France) 23,831 525,235
Banco Santander SA ADR (Spain) 39,518 524,404
Credit Suisse Group AG ADR (Switzerland) 16,321 838,573
HSBC Holdings PLC ADR (United Kingdom) + 12,262 621,561
National Australia Bank Ltd. ADR (Australia) 25,544 643,964
Shinhan Financial Group Co. Ltd. ADR
(South Korea) + 4,800 381,600
- --------------------------------------------------------------------------------
4,108,275
- --------------------------------------------------------------------------------
MATERIALS -- 11.3%
ArcelorMittal (Luxemburg) + 9,550 419,341
BHP Billiton Ltd. ADR (Australia) + 7,958 639,187
Cia Siderurgica Nacional SA ADR (Brazil) + 10,500 419,265
Randgold Resources Ltd. ADR (Jersey, C.I.) 2,639 202,754
Rio Tinto PLC ADR (United Kingdom) 3,784 895,786
Syngenta AG ADR (Switzerland) 11,092 615,717
Vale SA ADR (Brazil) + 26,600 856,254
- --------------------------------------------------------------------------------
4,048,304
- --------------------------------------------------------------------------------
INDUSTRIALS -- 9.6%
ABB Ltd. ADR (Switzerland)* 22,800 497,952
BAE Systems PLC ADR (United Kingdom) 21,441 481,136
Chicago Bridge & Iron Co. NV (Netherlands)* 15,300 355,878
Koninklijke Philips Electronics NV
(Netherlands) + 15,800 505,916
Kubota Corp. ADR (Japan) 12,967 591,166
Siemens AG ADR (Germany) 6,100 609,817
Tyco International Ltd. (Switzerland) 10,650 407,362
- --------------------------------------------------------------------------------
3,449,227
- --------------------------------------------------------------------------------
ENERGY -- 9.5%
BP PLC ADR (United Kingdom) 12,455 710,807
EnCana Corp. (Canada) + 14,010 434,730
Petroleo Brasileiro SA ADR (Brazil) 15,587 693,465
Schlumberger Ltd. (United States) 5,569 353,409
Statoil ASA ADR (Norway) + 27,706 646,381
Total SA ADR (France) 9,794 568,248
- --------------------------------------------------------------------------------
3,407,040
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 8.6%
Anheuser-Busch InBev NV ADR (Belgium)* + 15,058 759,676
British American Tobacco PLC ADR
(United Kingdom) + 9,800 675,220
Diageo PLC ADR (United Kingdom) 8,369 564,489
Nestle SA ADR (Switzerland) 12,097 618,882
Philip Morris International, Inc.
(United States) 8,830 460,573
- --------------------------------------------------------------------------------
3,078,840
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 6.3%
Honda Motor Co. Ltd. ADR (Japan) 15,091 532,561
Makita Corp. ADR (Japan) 21,108 699,730
Panasonic Corp. ADR (Japan) 23,690 362,931
Sony Corp. ADR (Japan) 17,135 656,442
- --------------------------------------------------------------------------------
2,251,664
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.7%
Millicom International Cellular SA
(Luxembourg) 3,900 347,685
Vodafone Group PLC ADR
(United Kingdom) + 27,596 642,711
- --------------------------------------------------------------------------------
990,396
- --------------------------------------------------------------------------------
UTILITIES -- 1.2%
E.ON AG ADR (Germany) 11,907 439,249
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 35,627,174
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 28.8%
Invesco AIM Liquid Assets Portfolio** 10,052,687 10,052,687
Touchstone Institutional
Money Market Fund^ 285,531 285,531
- --------------------------------------------------------------------------------
TOTAL INVESTMENT FUND $ 10,338,218
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 127.9%
(Cost $40,546,842) $ 45,965,392
LIABILITIES IN EXCESS OF OTHER ASSETS -- (27.9%) (10,039,139)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 35,926,253
================================================================================
118
- --------------------------------------------------------------------------------
International Growth Fund (Continued)
- --------------------------------------------------------------------------------
* Non-income producing security.
+ All or a portion of the security is on loan. The total value of the
securities on loan as of March 31, 2010, was $9,820,531.
** Represents collateral for securities loaned.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
ADR - American Depositary Receipt
ARM - Adjustable Rate Mortgage
PLC - Public Limited Company
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common
Stocks $ 35,627,174 $ -- $ -- $ 35,627,174
Investment
Fund 10,338,218 -- -- 10,338,218
==============
$ 45,965,392
See accompanying notes to financial statements.
119
- --------------------------------------------------------------------------------
Portfolio of Investments
Large Cap Relative Value Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 98.1% SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIALS -- 19.1%
Aflac, Inc. 1,500 $ 81,435
Bank of America Corp. 5,100 91,035
Chubb Corp. 1,500 77,775
Goldman Sachs Group, Inc. (The) 500 85,315
JPMorgan Chase & Co. 1,800 80,550
Morgan Stanley 2,000 58,580
Northern Trust Corp. 1,100 60,786
Travelers Cos., Inc./The 1,700 91,698
Wells Fargo & Co. 3,700 115,144
- --------------------------------------------------------------------------------
742,318
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 14.9%
Automatic Data Processing, Inc. 1,600 71,152
Corning, Inc. 4,900 99,029
Flextronics International Ltd.* 14,400 112,896
Intel Corp. 5,500 122,430
International Business Machines Corp. 900 115,425
Xerox Corp. 5,900 57,525
- --------------------------------------------------------------------------------
578,457
- --------------------------------------------------------------------------------
ENERGY -- 14.9%
Apache Corp. 700 71,050
Chesapeake Energy Corp. 1,700 40,188
ConocoPhillips 1,200 61,404
Exxon Mobil Corp. 600 40,188
Occidental Petroleum Corp. 1,700 143,718
Schlumberger Ltd. 1,200 76,152
Transocean Ltd.* 900 77,742
XTO Energy, Inc. 1,500 70,770
- --------------------------------------------------------------------------------
581,212
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 14.5%
Carnival Corp. 1,400 54,432
Comcast Corp. - Class A 3,100 58,342
Darden Restaurants, Inc. 2,300 102,442
Johnson Controls, Inc. 2,400 79,176
Target Corp. 1,000 52,600
TJX Cos., Inc. 2,000 85,040
Walt Disney Co./The 2,200 76,802
Yum! Brands, Inc. 1,500 57,495
- --------------------------------------------------------------------------------
566,329
- --------------------------------------------------------------------------------
INDUSTRIALS -- 12.0%
Boeing Co./The 1,300 94,393
Cummins, Inc. 1,700 105,315
General Dynamics Corp. 1,500 115,800
Norfolk Southern Corp. 1,400 78,246
Union Pacific Corp. 1,000 73,300
- --------------------------------------------------------------------------------
467,054
- --------------------------------------------------------------------------------
HEALTH CARE -- 10.4%
Beckman Coulter, Inc. 1,200 75,360
CR Bard, Inc. 500 43,310
Express Scripts, Inc.* 1,200 122,112
Pfizer, Inc. 1,800 30,870
UnitedHealth Group, Inc. 1,700 55,539
WellPoint, Inc.* 1,200 77,256
- --------------------------------------------------------------------------------
404,447
- --------------------------------------------------------------------------------
UTILITIES -- 4.4%
Duke Energy Corp. 2,400 39,168
Exelon Corp. 1,500 65,715
Southern Co. 2,000 66,320
- --------------------------------------------------------------------------------
171,203
- --------------------------------------------------------------------------------
MATERIALS -- 4.3%
Freeport-McMoRan Copper & Gold, Inc. 2,000 167,080
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 2.0%
American Tower Corp. - Class A* 1,800 76,698
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 1.6%
Kimberly-Clark Corp. 1,000 62,880
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 3,817,678
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 1.7%
Touchstone Institutional
Money Market Fund^ 66,759 66,759
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 99.8%
(Cost $3,418,790) $ 3,884,437
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2% 6,610
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 3,891,047
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $3,817,678 $ -- $ -- $3,817,678
Investment Fund 66,759 -- -- 66,759
==========
$3,884,437
See accompanying notes to financial statements.
120
- --------------------------------------------------------------------------------
Portfolio of Investments
Market Neutral Equity Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 91.4% SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIALS -- 22.8%
BancFirst Corp. 800 $ 33,528
Banco Latinoamericano de Comercio
Exterior SA - Class E 5,200 74,672
BancorpSouth, Inc. 2,500 52,400
Bank of Hawaii Corp. 700 31,465
Bank of the Ozarks, Inc. 2,000 70,380
Brookfield Asset Management, Inc. - Class A 1,900 48,298
Chubb Corp. 1,100 57,035
City Holding Co. 2,200 75,438
CME Group, Inc. 100 31,611
Commerce Bancshares, Inc. 1,600 65,824
Dime Community Bancshares 3,200 40,416
Eaton Vance Corp. 1,400 46,956
Federated Investors, Inc. - Class B 1,200 31,656
Forestar Group, Inc.* 1,800 33,984
Franklin Resources, Inc. 800 88,720
Fulton Financial Corp. 3,700 37,703
Getty Realty Corp. REIT 1,300 30,420
Hudson City Bancorp, Inc. 5,600 79,296
Infinity Property & Casualty Corp. 1,600 72,704
International Bancshares Corp. 1,800 41,382
Life Partners Holdings, Inc. 2,400 53,208
LTC Properties, Inc. REIT 2,300 62,238
Montpelier Re Holdings Ltd. 2,500 42,025
National Financial Partners Corp.* 2,300 32,430
National Health Investors, Inc. REIT 2,200 85,272
NBT Bancorp, Inc. 1,600 36,560
NewAlliance Bancshares, Inc. 4,700 59,314
NYSE Euronext 2,100 62,181
optionsXpress Holdings, Inc.* 2,100 34,209
ProAssurance Corp.* 600 35,124
Prosperity Bancshares, Inc. 2,100 86,100
RLI Corp. 1,200 68,424
SEI Investments Co. 2,200 48,334
Selective Insurance Group 2,600 43,160
T Rowe Price Group, Inc. 1,900 104,367
Taubman Centers, Inc. REIT 2,200 87,824
Trustmark Corp. 3,100 75,733
UMB Financial Corp. 1,300 52,780
Unitrin, Inc. 1,900 53,295
Waddell & Reed Financial, Inc. - Class A 1,100 39,644
Wells Fargo & Co. 1,000 31,120
WesBanco, Inc. 3,600 58,536
- --------------------------------------------------------------------------------
2,295,766
- --------------------------------------------------------------------------------
INDUSTRIALS -- 14.7%
Apogee Enterprises, Inc. 2,800 44,268
ATC Technology Corp.* 1,500 25,740
Canadian National Railway Co. 800 48,472
CH Robinson Worldwide, Inc. 500 27,925
CIRCOR International, Inc. 1,100 36,531
Cooper Industries PLC 800 38,352
Corporate Executive Board Co./The 1,500 39,885
Crane Co. 1,200 42,600
Dover Corp. 800 37,400
DynCorp International, Inc. - Class A* 1,700 19,550
Ennis, Inc. 4,000 65,080
EnPro Industries, Inc.* 1,700 49,436
Gardner Denver, Inc. 900 39,636
Graco, Inc. 2,400 76,800
KBR, Inc. 2,200 48,752
L-3 Communications Holdings, Inc. 700 64,141
Landstar System, Inc. 1,000 41,980
Lennox International, Inc. 900 39,888
Lincoln Electric Holdings, Inc. 600 32,598
Nordson Corp. 600 40,752
Northrop Grumman Corp. 1,500 98,355
R.R. Donnelley & Sons Co. 2,000 42,700
Raven Industries, Inc. 1,400 41,286
Raytheon Co. 900 51,408
Rollins, Inc. 1,600 34,688
SPX Corp. 600 39,792
Toro Co. 1,600 78,672
Tyco International Ltd. 1,200 45,900
United Parcel Service, Inc. - Class B 500 32,205
WABCO Holdings, Inc.* 1,300 38,896
Waste Connections, Inc.* 1,700 57,732
WW Grainger, Inc. 500 54,060
- --------------------------------------------------------------------------------
1,475,480
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 13.8%
ACI Worldwide, Inc.* 1,700 35,037
ANSYS, Inc.* 900 38,826
CACI International, Inc. - Class A* 700 34,195
CGI Group, Inc. - Class A* 2,900 43,239
Check Point Software Technologies Ltd.* 1,800 63,108
EarthLink, Inc. 3,800 32,452
Epicor Software Corp.* 4,000 38,240
Factset Research Systems, Inc. 500 36,685
Fiserv, Inc.* 1,200 60,912
Flextronics International Ltd.* 4,200 32,928
Harris Corp. 900 42,741
Hewitt Associates, Inc. - Class A* 800 31,824
IAC/InterActiveCorp* 2,300 52,302
Integrated Device Technology, Inc.* 6,200 38,006
Intel Corp. 1,600 35,616
Intersil Corp. - Class A 2,100 30,996
Lawson Software, Inc.* 4,200 27,762
Manhattan Associates, Inc.* 1,600 40,768
MAXIMUS, Inc. 700 42,651
Methode Electronics, Inc. 2,800 27,720
Micrel, Inc. 4,400 46,904
Net 1 UEPS Technologies, Inc.* 3,500 64,365
Netgear, Inc.* 1,800 46,980
Quest Software, Inc.* 1,700 30,243
Rogers Corp.* 1,500 43,515
SRA International, Inc. - Class A* 1,600 33,264
Symantec Corp.* 3,400 57,528
TeleTech Holdings, Inc.* 1,800 30,744
121
- --------------------------------------------------------------------------------
Market Neutral Equity Fund (Continued)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 91.4% (Continued) SHARES VALUE
- --------------------------------------------------------------------------------
Teradata Corp.* 1,100 $ 31,779
Texas Instruments, Inc. 1,600 39,152
ValueClick, Inc.* 5,400 54,756
Visa, Inc. - Class A 400 36,412
Websense, Inc.* 1,500 34,155
Zebra Technologies Corp. - Class A* 1,800 53,280
- --------------------------------------------------------------------------------
1,389,085
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 12.0%
AutoZone, Inc.* 400 69,236
Coach, Inc. 2,000 79,040
Deckers Outdoor Corp.* 400 55,200
DIRECTV - Class A* 2,800 94,668
Drew Industries, Inc.* 1,400 30,828
Expedia, Inc. 1,300 32,448
Finish Line, Inc./The - Class A 3,100 50,592
Gentex Corp. 2,600 50,492
H&R Block, Inc. 1,700 30,260
International Speedway Corp. - Class A 1,200 30,924
ITT Educational Services, Inc.* 300 33,744
Liberty Global, Inc. - Class A* 1,400 40,824
Ltd. Brands, Inc. 1,800 44,316
Macy's, Inc. 1,900 41,363
McDonald's Corp. 500 33,360
Meredith Corp. 1,500 51,615
Netflix, Inc.* 500 36,870
Polaris Industries, Inc. 800 40,928
Rent-A-Center, Inc. - Class A* 1,600 37,840
Scripps Networks Interactive, Inc. - Class A 800 35,480
Sherwin-Williams Co./The 500 33,840
Shuffle Master, Inc.* 3,300 27,027
Stage Stores, Inc. 2,400 36,936
Strayer Education, Inc. 100 24,352
Tim Hortons, Inc. 1,300 42,367
Universal Technical Institute, Inc.* 2,100 47,922
Weight Watchers International, Inc. 1,600 40,848
Wyndham Worldwide Corp. 1,300 33,449
- --------------------------------------------------------------------------------
1,206,769
- --------------------------------------------------------------------------------
HEALTH CARE -- 10.9%
Alkermes, Inc.* 2,800 36,316
AMERIGROUP Corp.* 1,900 63,156
AmerisourceBergen Corp. 1,100 31,812
Amgen, Inc.* 900 53,784
Amsurg Corp.* 3,000 64,770
Biogen Idec, Inc.* 600 34,416
Exelixis, Inc.* 4,800 29,136
Gentiva Health Services, Inc.* 1,200 33,936
Gilead Sciences, Inc.* 1,100 50,028
Healthspring, Inc.* 1,800 31,680
Hill-Rom Holdings, Inc. 3,200 87,072
Hologic, Inc.* 2,300 42,642
IDEXX Laboratories, Inc.* 1,000 57,550
Invacare Corp. 1,300 34,502
inVentiv Health, Inc.* 1,900 42,674
Johnson & Johnson 500 32,600
Magellan Health Services, Inc.* 1,400 60,872
Medicines Co./The* 6,300 49,392
MWI Veterinary Supply, Inc.* 1,000 40,400
Quidel Corp.* 2,100 30,534
Techne Corp. 900 57,321
Universal American Financial Corp.* 2,500 38,550
Valeant Pharmaceuticals International* 1,400 60,074
Zimmer Holdings, Inc.* 600 35,520
- --------------------------------------------------------------------------------
1,098,737
- --------------------------------------------------------------------------------
ENERGY -- 7.1%
Apache Corp. 300 30,450
Basic Energy Services, Inc.* 4,400 33,924
Chevron Corp. 900 68,247
ConocoPhillips 1,100 56,287
CVR Energy, Inc.* 2,500 21,875
Dawson Geophysical Co.* 1,400 40,936
Exxon Mobil Corp. 1,300 87,074
FMC Technologies, Inc.* 1,000 64,630
Gulf Island Fabrication, Inc. 700 15,225
Imperial Oil Ltd. 1,500 58,305
Lufkin Industries, Inc. 500 39,575
Marathon Oil Corp. 1,600 50,624
Murphy Oil Corp. 500 28,095
Patterson-UTI Energy, Inc. 4,100 57,277
Pioneer Drilling Co.* 5,500 38,720
Ultra Petroleum Corp.* 600 27,978
- --------------------------------------------------------------------------------
719,222
- --------------------------------------------------------------------------------
UTILITIES -- 3.7%
DPL, Inc. 1,200 32,628
Edison International 900 30,753
El Paso Electric Co.* 3,500 72,100
Energen Corp. 1,700 79,101
Mirant Corp.* 2,400 26,064
Public Service Enterprise Group, Inc. 2,600 76,752
Sempra Energy 1,100 54,890
- --------------------------------------------------------------------------------
372,288
- --------------------------------------------------------------------------------
MATERIALS -- 3.6%
A Schulman, Inc. 1,400 34,258
AptarGroup, Inc. 800 31,480
Cabot Corp. 1,400 42,560
Carpenter Technology Corp. 1,100 40,260
HB Fuller Co. 2,000 46,420
Kaiser Aluminum Corp. 1,000 38,570
Minerals Technologies, Inc. 1,300 67,392
Nucor Corp. 700 31,766
Southern Copper Corp. 1,000 31,670
- --------------------------------------------------------------------------------
364,376
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 2.8%
Brown-Forman Corp. - Class B 1,000 59,450
Campbell Soup Co. 2,100 74,235
Hershey Co./The 1,100 47,091
122
- --------------------------------------------------------------------------------
Market Neutral Equity Fund (Continued)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 91.4% (Continued) SHARES VALUE
- --------------------------------------------------------------------------------
Lancaster Colony Corp. 800 $ 47,168
Prestige Brands Holdings, Inc.* 5,500 49,500
- --------------------------------------------------------------------------------
277,444
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 9,199,167
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 4.7%
Touchstone Institutional
Money Market Fund^ 473,632 473,632
- --------------------------------------------------------------------------------
TOTAL LONG POSITIONS (Cost $8,800,534) $ 9,672,799
- --------------------------------------------------------------------------------
SECURITIES SOLD SHORT -- (90.3%)
COMMON STOCKS -- (90.3%)
CONSUMER STAPLES -- (3.0%)
Avon Products, Inc. (900) (30,483)
Bunge Ltd. (500) (30,815)
Central European Distribution Corp.* (900) (31,509)
Church & Dwight Co., Inc. (500) (33,475)
Costco Wholesale Corp. (500) (29,855)
Dean Foods Co.* (1,600) (25,104)
Green Mountain Coffee Roasters, Inc.* (400) (38,728)
Hain Celestial Group, Inc./The* (2,200) (38,170)
Smithfield Foods, Inc.* (2,300) (47,702)
- --------------------------------------------------------------------------------
(305,841)
- --------------------------------------------------------------------------------
UTILITIES -- (4.1%)
American Water Works Co., Inc. (3,000) (65,280)
Empire District Electric Co./The (2,400) (43,248)
Hawaiian Electric Industies, Inc. (1,700) (38,165)
Northeast Utilities (1,300) (35,932)
Pepco Holdings, Inc. (2,200) (37,730)
Portland General Electric Co. (2,000) (38,620)
Progress Energy, Inc. (800) (31,488)
Southern Co. (2,600) (86,216)
Xcel Energy, Inc. (1,700) (36,040)
- --------------------------------------------------------------------------------
(412,719)
- --------------------------------------------------------------------------------
MATERIALS -- (5.1%)
Alcoa, Inc. (2,000) (28,480)
AM Castle & Co.* (2,800) (36,652)
Commercial Metals Co. (2,200) (33,132)
Deltic Timber Corp. (800) (35,240)
Intrepid Potash, Inc.* (1,000) (30,330)
Martin Marietta Materials, Inc. (900) (75,195)
PPG Industries, Inc. (700) (45,780)
RTI International Metals, Inc.* (1,500) (45,495)
Sensient Technologies Corp. (2,600) (75,556)
Vulcan Materials Co. (1,600) (75,584)
Weyerhaeuser Co. (800) (36,216)
- --------------------------------------------------------------------------------
(517,660)
- --------------------------------------------------------------------------------
ENERGY -- (6.8%)
Anadarko Petroleum Corp. (1,500) (109,245)
Bristow Group, Inc.* (1,200) (45,276)
Cameron International Corp.* (800) (34,288)
Forest Oil Corp.* (2,900) (74,878)
Goodrich Petroleum Corp.* (1,100) (17,204)
Gulfmark Offshore, Inc. - Class A* (900) (23,895)
Noble Energy, Inc. (400) (29,200)
Penn Virginia Corp. (1,200) (29,400)
Petrohawk Energy Corp.* (1,400) (28,392)
Pride International, Inc.* (1,000) (30,110)
Range Resources Corp. (600) (28,122)
Spectra Energy Corp. (2,300) (51,819)
Tidewater, Inc. (700) (33,089)
TransCanada Corp. (1,000) (36,760)
Transocean Ltd.* (500) (43,190)
Weatherford International Ltd.* (4,400) (69,784)
- --------------------------------------------------------------------------------
(684,652)
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- (9.6%)
Advance Auto Parts, Inc. (800) (33,536)
BorgWarner, Inc.* (1,100) (41,998)
Callaway Golf Co. (4,800) (42,336)
GameStop Corp. - Class A* (1,800) (39,438)
Gaylord Entertainment Co.* (2,200) (64,438)
Hanesbrands, Inc.* (1,300) (36,166)
Harley-Davidson, Inc. (1,400) (39,298)
hhgregg, Inc.* (1,700) (42,908)
Iconix Brand Group, Inc.* (2,200) (33,792)
Kohl's Corp.* (600) (32,868)
Marriott International, Inc. - Class A (1) (23)
MGM Mirage* (3,200) (38,400)
Monro Muffler Brake, Inc. (1,700) (60,792)
NIKE, Inc. - Class B (500) (36,750)
O'Reilly Automotive, Inc.* (2,300) (95,933)
Orient-Express Hotels Ltd. - Class A* (4,400) (62,392)
Starwood Hotels & Resorts Worldwide, Inc. (900) (41,976)
Thomson Reuters Corp. (2,400) (87,120)
Time Warner Cable, Inc. (700) (37,317)
Vail Resorts, Inc.* (1,600) (64,144)
Wynn Resorts Ltd. (400) (30,332)
- --------------------------------------------------------------------------------
(961,957)
- --------------------------------------------------------------------------------
HEALTH CARE -- (10.7%)
athenahealth, Inc.* (1,300) (47,528)
Becton Dickinson and Co. (400) (31,492)
Brookdale Senior Living, Inc.* (1,600) (33,328)
Cerner Corp.* (500) (42,530)
Computer Programs & Systems, Inc. (900) (35,172)
Cooper Cos., Inc./The (1,000) (38,880)
Covance, Inc.* (600) (36,834)
Dendreon Corp.* (1,100) (40,117)
Edwards Lifesciences Corp.* (400) (39,552)
HMS Holdings Corp.* (900) (45,891)
Illumina, Inc.* (1,000) (38,900)
Immunogen, Inc.* (4,600) (37,214)
Landauer, Inc. (1,100) (71,742)
Luminex Corp.* (1,800) (30,294)
MedAssets, Inc.* (1,500) (31,500)
NuVasive, Inc.* (2,100) (94,920)
123
- --------------------------------------------------------------------------------
Market Neutral Equity Fund (Continued)
- --------------------------------------------------------------------------------
MARKET
SECURITIES SOLD SHORT -- (90.3%)(CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------
Qiagen NV* (3,000) $ (68,970)
Quality Systems, Inc. (500) (30,720)
St. Jude Medical, Inc.* (900) (36,945)
SurModics, Inc.* (1,500) (31,410)
VCA Antech, Inc.* (1,300) (36,439)
Vertex Pharmaceuticals, Inc.* (1,100) (44,957)
Vivus, Inc.* (4,100) (35,752)
West Pharmaceutical Services, Inc. (1,400) (58,730)
XenoPort, Inc.* (4,200) (38,892)
- --------------------------------------------------------------------------------
(1,078,709)
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- (12.7%)
3PAR, Inc.* (2,600) (26,000)
Apple, Inc.* (200) (46,986)
ArcSight, Inc.* (1,400) (39,410)
Compellent Technologies, Inc.* (1,900) (33,345)
Constant Contact, Inc.* (1,600) (37,152)
Electronic Arts, Inc.* (3,000) (55,980)
EPIQ Systems, Inc.* (2,100) (26,103)
Equinix, Inc.* (600) (58,404)
FEI Co.* (1,300) (29,783)
Global Payments, Inc. (900) (40,995)
Itron, Inc.* (600) (43,542)
Marvell Technology Group Ltd.* (1,700) (34,646)
Maxwell Technologies, Inc.* (1,900) (23,541)
Microchip Technology, Inc. (1,200) (33,792)
Micron Technology, Inc.* (4,100) (42,599)
NetApp, Inc.* (1,100) (35,816)
Netezza Corp.* (3,700) (47,323)
NetSuite, Inc.* (2,100) (30,534)
OSI Systems, Inc.* (1,200) (33,660)
Palm, Inc.* (2,000) (7,520)
Pegasystems, Inc. (900) (33,300)
Rackspace Hosting, Inc.* (1,900) (35,587)
SAIC, Inc.* (1,800) (31,860)
Salesforce.com, Inc.* (600) (44,670)
SAVVIS, Inc.* (1,900) (31,350)
SuccessFactors, Inc.* (3,600) (68,544)
Sycamore Networks, Inc. (2,900) (58,319)
Take-Two Interactive Software, Inc.* (3,000) (29,550)
TeleCommunication Systems, Inc. - Class A* (4,000) (29,320)
TiVo, Inc.* (3,000) (51,360)
Total System Services, Inc. (4,000) (62,640)
Ultimate Software Group, Inc.* (1,300) (42,835)
Universal Display Corp.* (2,900) (34,133)
- --------------------------------------------------------------------------------
(1,280,599)
- --------------------------------------------------------------------------------
INDUSTRIALS -- (15.6%)
Aecom Technology Corp.* (1,300) (36,881)
Aerovironment, Inc.* (1,600) (41,776)
American Science & Engineering, Inc. (500) (37,460)
AMR Corp.* (4,200) (38,262)
Avery Dennison Corp. (900) (32,769)
Caterpillar, Inc. (1,600) (100,560)
Clean Harbors, Inc.* (600) (33,336)
Con-way, Inc. (800) (28,096)
CoStar Group, Inc.* (800) (33,216)
Covanta Holding Corp.* (1,700) (28,322)
Deere & Co. (700) (41,622)
Energy Recovery, Inc.* (5,700) (35,910)
EnerNOC, Inc.* (1,000) (29,680)
GATX Corp. (1,600) (45,840)
General Electric Co. (4,100) (74,620)
Genesee & Wyoming, Inc. - Class A* (1,200) (40,944)
HNI Corp. (1,600) (42,608)
ICF International, Inc.* (1,300) (32,292)
Iron Mountain, Inc. (1,300) (35,620)
Kelly Services, Inc. - Class A* (3,500) (58,310)
Kennametal, Inc. (2,200) (61,864)
Manpower, Inc. (1,100) (62,832)
Mobile Mini, Inc.* (3,400) (52,666)
Moog, Inc. - Class A* (1,100) (38,962)
Otter Tail Corp. (2,800) (61,488)
PACCAR, Inc. (2,000) (86,680)
Pall Corp. (900) (36,441)
Resources Connection, Inc.* (1,700) (32,589)
Roper Industries, Inc. (900) (52,056)
Sterling Construction Co., Inc.* (1,900) (29,868)
Terex Corp.* (1,600) (36,336)
Titan International, Inc. (4,500) (39,285)
TransDigm Group, Inc. (600) (31,824)
Waste Management, Inc. (1,500) (51,645)
Watsco, Inc. (800) (45,504)
- --------------------------------------------------------------------------------
(1,568,164)
- --------------------------------------------------------------------------------
FINANCIALS -- (22.7%)
Alexandria Real Estate Equities, Inc. REIT (500) (33,800)
Arthur J Gallagher & Co. (2,900) (71,195)
Aspen Insurance Holdings Ltd. (1,800) (51,912)
Associated Banc-Corp (2,500) (34,500)
Bank of America Corp. (4,100) (73,185)
Capitol Federal Financial (1,200) (44,952)
Cathay General Bancorp (3,700) (43,105)
Citigroup, Inc.* (9,700) (39,285)
Cousins Properties, Inc. REIT (4,435) (36,855)
Developers Diversified Realty Corp. REIT (3,300) (40,161)
Fifth Third Bancorp (3,100) (42,129)
First Horizon National Corp.* (2,883) (40,509)
First Niagara Financial Group, Inc. (4,100) (58,302)
FirstMerit Corp. (1,700) (36,669)
GLG Partners, Inc.* (16,600) (50,962)
Hilltop Holdings, Inc.* (5,200) (61,100)
Iberiabank Corp. (1,000) (60,010)
Inland Real Estate Corp. REIT (5,100) (46,665)
Interactive Brokers Group, Inc. - Class A* (3,300) (53,295)
Investors Real Estate Trust REIT (8,000) (72,160)
KeyCorp (5,500) (42,625)
Kimco Realty Corp. REIT (3,300) (51,612)
Lincoln National Corp. (1,300) (39,910)
Marshall & Ilsley Corp. (4,800) (38,640)
124
- --------------------------------------------------------------------------------
Market Neutral Equity Fund (Continued)
- --------------------------------------------------------------------------------
MARKET
SECURITIES SOLD SHORT -- (90.3%)(CONTINUED) SHARES VALUE
- --------------------------------------------------------------------------------
MB Financial, Inc. (2,600) $ (58,578)
Morgan Stanley (1,700) (49,793)
National Penn Bancshares, Inc. (8,000) (55,200)
Northern Trust Corp. (900) (49,734)
Old National Bancorp (2,800) (33,460)
Old Republic International Corp. (7,000) (88,760)
PacWest Bancorp (1,900) (43,358)
Pico Holdings, Inc.* (1,200) (44,628)
Pinnacle Financial Partners, Inc.* (4,100) (61,951)
PrivateBancorp, Inc. (3,200) (43,840)
Ramco-Gershenson Properties Trust REIT (3,800) (42,788)
Regency Centers Corp. REIT (1,000) (37,470)
Regions Financial Corp. (5,600) (43,960)
State Street Corp. (600) (27,084)
Sterling Bancshares, Inc. (14,600) (81,468)
Sunstone Hotel Investors, Inc. REIT* (4,100) (45,797)
SunTrust Banks, Inc. (1,800) (48,222)
Umpqua Holdings Corp. (5,600) (74,256)
Washington Federal, Inc. (2,700) (54,864)
Western Alliance Bancorp* (9,000) (51,210)
Whitney Holding Corp. (3,400) (46,886)
Zions Bancorporation (1,700) (37,094)
- --------------------------------------------------------------------------------
(2,283,939)
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ (9,094,240)
- --------------------------------------------------------------------------------
TOTAL SECURITIES SOLD SHORT ($8,258,277) $ (9,094,240)
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 5.8%
(Cost $542,257) $ 578,559
CASH COLLATERAL FOR SECURITIES
SOLD SHORT -- 95.6% 9,636,995
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.4%) (139,962)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 10,075,592
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
PLC - Public Limited Company
REIT - Real Estate Investment Trust
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Collateral for Securities
Sold Short $9,636,995 $ -- $ -- $9,636,995
Investment Fund 473,632 -- -- 473,632
Common Stocks 104,927 -- -- 104,927
===========
$10,215,554
See accompanying notes to financial statements.
125
- --------------------------------------------------------------------------------
Portfolio of Investments
Mid Cap Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 98.4% SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIALS -- 17.4%
AllianceBernstein Holding LP + 95,070 $ 2,914,846
Arch Capital Group Ltd.* 32,870 2,506,338
Assured Guaranty Ltd. + 107,170 2,354,525
Brandywine Realty Trust REIT + 250,770 3,061,902
City National Corp. 8,320 449,030
Digital Realty Trust, Inc. REIT + 40,320 2,185,344
Douglas Emmett, Inc. REIT + 136,110 2,092,011
Fifth Third Bancorp 164,970 2,241,942
First Horizon National Corp.* 67,017 941,591
IntercontinentalExchange, Inc.* 14,210 1,594,078
Marshall & Ilsley Corp. 326,883 2,631,408
SunTrust Banks, Inc. 103,760 2,779,730
- --------------------------------------------------------------------------------
25,752,745
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 14.9%
Broadridge Financial Solutions, Inc. 87,400 1,868,612
Check Point Software Technologies Ltd.* 69,040 2,420,542
IAC/InterActiveCorp* 121,190 2,755,861
Jabil Circuit, Inc. 146,800 2,376,692
MEMC Electronic Materials, Inc.* 86,470 1,325,585
Micron Technology, Inc.* 221,530 2,301,697
Nuance Communications, Inc.* 132,060 2,197,478
ON Semiconductor Corp.* 182,720 1,461,760
Seagate Technology* + 81,980 1,496,955
Sybase, Inc.* + 47,757 2,226,431
Teradyne, Inc.* + 145,650 1,626,911
- --------------------------------------------------------------------------------
22,058,524
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 14.1%
Autoliv, Inc.* + 42,070 2,167,867
DISH Network Corp. - Class A 84,890 1,767,410
Guess?, Inc. 56,960 2,675,981
Hasbro, Inc. + 65,970 2,525,332
Lamar Advertising Co. - Class A* + 56,210 1,930,814
Las Vegas Sands Corp.* + 116,330 2,460,379
Lear Corp.* 32,970 2,616,169
Office Depot, Inc.* 139,810 1,115,684
Stanley Black & Decker, Inc. 19,130 1,098,253
Starwood Hotels & Resorts Worldwide, Inc. + 53,470 2,493,841
- --------------------------------------------------------------------------------
20,851,730
- --------------------------------------------------------------------------------
HEALTH CARE -- 10.7%
Biovail Corp. + 142,080 2,382,682
DaVita, Inc.* 34,000 2,155,600
Dendreon Corp.* + 30,690 1,119,264
Humana, Inc.* 37,400 1,749,198
Intuitive Surgical, Inc.* 4,220 1,469,109
King Pharmaceuticals, Inc.* 191,580 2,252,981
Life Technologies Corp.* 46,970 2,455,122
Mylan, Inc.* + 96,960 2,201,961
- --------------------------------------------------------------------------------
15,785,917
- --------------------------------------------------------------------------------
INDUSTRIALS -- 9.1%
Chicago Bridge & Iron Co. NV* 82,490 1,918,717
Continental Airlines, Inc. - Class B* + 51,030 1,121,129
Cooper Industries PLC 54,290 2,602,663
Joy Global, Inc. 26,440 1,496,504
McDermott International, Inc.* 97,710 2,630,353
Terex Corp.* + 54,070 1,227,930
WW Grainger, Inc. 23,260 2,514,871
- --------------------------------------------------------------------------------
13,512,167
- --------------------------------------------------------------------------------
MATERIALS -- 9.1%
Carpenter Technology Corp. + 59,495 2,177,517
Cliffs Natural Resources, Inc. 49,480 3,510,606
Cytec Industries, Inc. 53,700 2,509,938
Lubrizol Corp. 19,630 1,800,464
Scotts Miracle-Gro Co./The - Class A + 32,230 1,493,860
Temple-Inland, Inc. 96,670 1,974,968
- --------------------------------------------------------------------------------
13,467,353
- --------------------------------------------------------------------------------
ENERGY -- 8.0%
Alpha Natural Resources, Inc.* 32,810 1,636,891
Concho Resources, Inc.* 41,240 2,076,846
ENSCO International, Inc. ADR 36,940 1,654,173
FMC Technologies, Inc.* + 18,180 1,174,973
Newfield Exploration Co.* 40,985 2,133,269
Oil States International, Inc.* 37,840 1,715,666
Plains Exploration & Production Co.* + 49,130 1,473,409
- --------------------------------------------------------------------------------
11,865,227
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 6.2%
Green Mountain Coffee Roasters, Inc.* + 27,450 2,657,709
Safeway, Inc. 92,850 2,308,251
Sara Lee Corp. 166,770 2,323,106
Whole Foods Market, Inc.* + 51,650 1,867,148
- --------------------------------------------------------------------------------
9,156,214
- --------------------------------------------------------------------------------
UTILITIES -- 5.3%
Constellation Energy Group, Inc. 70,150 2,462,966
Northeast Utilities 81,300 2,247,132
NV Energy, Inc. 93,830 1,156,924
Questar Corp. + 47,620 2,057,184
- --------------------------------------------------------------------------------
7,924,206
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 3.6%
SBA Communications Corp. - Class A* 76,950 2,775,587
Windstream Corp. + 232,780 2,534,974
- --------------------------------------------------------------------------------
5,310,561
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 145,684,644
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 25.6%
Invesco AIM Liquid Assets Portfolio** 34,657,844 34,657,844
Touchstone Institutional
Money Market Fund^ 3,302,762 3,302,762
- --------------------------------------------------------------------------------
TOTAL INVESTMENT FUND $ 37,960,606
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 124.0%
(Cost $157,346,701) $ 183,645,250
LIABILITIES IN EXCESS OF OTHER ASSETS -- (24.0%) (35,558,443)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 148,086,807
126
- --------------------------------------------------------------------------------
Mid Cap Fund (Continued)
- --------------------------------------------------------------------------------
+ All or a portion of the security is on loan. The total value of the
securities on loan as of March 31, 2010, was $33,717,033.
* Non-income producing security.
** Represents collateral for securities loaned.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
ADR - American Depositary Receipt
PLC - Public Limited Company
REIT - Real Estate Investment Trust
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $145,684,644 $ -- $ -- $145,684,644
Investment Fund 37,960,606 -- -- 37,960,606
============
$183,645,250
See accompanying notes to financial statements.
127
- --------------------------------------------------------------------------------
Portfolio of Investments
Mid Cap Value Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 98.0% SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIALS -- 24.2%
Ameriprise Financial, Inc. 1,246 $ 56,519
Boston Properties, Inc. REIT 860 64,878
Comerica, Inc. 1,577 59,989
Endurance Specialty Holdings Ltd. 1,448 53,793
Federated Investors, Inc. - Class B 2,177 57,429
Fifth Third Bancorp 4,167 56,630
First Horizon National Corp.* 2,627 36,911
Host Hotels & Resorts, Inc. REIT 4,239 62,101
Liberty Property Trust REIT 1,860 63,128
PartnerRe Ltd. 718 57,239
People's United Financial, Inc. 3,324 51,987
ProAssurance Corp.* 966 56,550
Reinsurance Group of America, Inc. 1,073 56,354
Unum Group 2,533 62,742
Willis Group Holdings PLC 1,885 58,982
Zions Bancorporation 2,246 49,008
- --------------------------------------------------------------------------------
904,240
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 12.8%
American Eagle Outfitters, Inc. 2,962 54,856
BorgWarner, Inc.* 1,396 53,299
Darden Restaurants, Inc. 997 44,406
GameStop Corp. - Class A* 2,435 53,351
H&R Block, Inc. 3,302 58,776
Harley-Davidson, Inc. 1,945 54,596
International Game Technology 2,590 47,785
Interpublic Group of Cos., Inc.* 6,840 56,909
PetSmart, Inc. 1,733 55,387
- --------------------------------------------------------------------------------
479,365
- --------------------------------------------------------------------------------
INDUSTRIALS -- 11.5%
Avery Dennison Corp. 1,743 63,462
Cintas Corp. 1,737 48,792
Dover Corp. 1,140 53,295
PACCAR, Inc. 1,388 60,156
Pitney Bowes, Inc. 2,306 56,382
R.R. Donnelley & Sons Co. 2,142 45,732
Rockwell Collins, Inc. 647 40,496
Spirit Aerosystems Holdings, Inc. - Class A* 2,547 59,549
- --------------------------------------------------------------------------------
427,864
- --------------------------------------------------------------------------------
UTILITIES -- 10.4%
AGL Resources, Inc. 1,566 60,526
Consolidated Edison, Inc. 779 34,697
Edison International 1,274 43,533
Great Plains Energy, Inc. 2,995 55,617
Pinnacle West Capital Corp. 1,396 52,671
Portland General Electric Co. 2,270 43,834
SCANA Corp. 1,184 44,506
Xcel Energy, Inc. 2,396 50,795
- --------------------------------------------------------------------------------
386,179
- --------------------------------------------------------------------------------
ENERGY -- 9.5%
Murphy Oil Corp. 993 55,797
Nabors Industries Ltd.* 2,811 55,180
Newfield Exploration Co.* 886 46,116
Pioneer Natural Resources Co. 988 55,644
Range Resources Corp. 946 44,339
Spectra Energy Corp. 2,395 53,959
Sunoco, Inc. 1,447 42,991
- --------------------------------------------------------------------------------
354,026
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 8.8%
Analog Devices, Inc. 1,957 56,401
Brocade Communications Systems, Inc.* 9,184 52,440
Diebold, Inc. 1,697 53,897
Molex, Inc. 2,580 53,819
Sybase, Inc.* 1,083 50,489
Synopsys, Inc.* 2,740 61,294
- --------------------------------------------------------------------------------
328,340
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 7.9%
BJ's Wholesale Club, Inc.* 1,026 37,952
Brown-Forman Corp. - Class B 950 56,478
Constellation Brands, Inc. - Class A* 2,242 36,858
Dean Foods Co.* 3,793 59,512
McCormick & Co., Inc. 1,312 50,328
Molson Coors Brewing Co. - Class B 1,263 53,122
- --------------------------------------------------------------------------------
294,250
- --------------------------------------------------------------------------------
MATERIALS -- 7.9%
Allegheny Technologies, Inc. 1,063 57,391
Cliffs Natural Resources, Inc. 640 45,408
Nucor Corp. 1,120 50,826
Owens-Illinois, Inc.* 1,598 56,793
Packaging Corp of America 1,856 45,676
Pactiv Corp.* 1,592 40,087
- --------------------------------------------------------------------------------
296,181
- --------------------------------------------------------------------------------
HEALTH CARE -- 5.0%
AmerisourceBergen Corp. 1,671 48,325
Beckman Coulter, Inc. 572 35,922
Cooper Cos., Inc./The 716 27,838
Henry Schein, Inc.* 700 41,230
Teleflex, Inc. 525 33,637
- --------------------------------------------------------------------------------
186,952
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 3,657,397
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 1.2%
Touchstone Institutional
Money Market Fund^ 42,954 42,954
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 99.2%
(Cost $3,335,902) $ 3,700,351
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.8% 29,933
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 3,730,284
================================================================================
128
- --------------------------------------------------------------------------------
Mid Cap Value Fund (Continued)
- --------------------------------------------------------------------------------
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
PLC - Public Limited Company
REIT - Real Estate Investment Trust
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $ 3,657,397 $ -- $ -- $ 3,657,397
Investment Fund 42,954 -- -- 42,954
============
$ 3,700,351
See accompanying notes to financial statements.
129
- --------------------------------------------------------------------------------
Portfolio of Investments
Premium Yield Equity Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 98.3% SHARES VALUE
- --------------------------------------------------------------------------------
ENERGY -- 20.1%
BP PLC ADR 13,840 $ 789,849
Diamond Offshore Drilling, Inc. 7,820 694,494
Enerplus Resources Fund 49,945 1,184,196
Kinder Morgan Management LLC* 37,673 2,208,402
Southern Union Co. 42,725 1,083,933
Spectra Energy Corp. 43,325 976,112
- --------------------------------------------------------------------------------
6,936,986
- --------------------------------------------------------------------------------
FINANCIALS -- 16.2%
Alexandria Real Estate Equities, Inc. REIT 11,435 773,006
Allstate Corp. 24,070 777,702
Bank of Montreal 9,025 547,817
Cincinnati Financial Corp. 25,275 730,447
Digital Realty Trust, Inc. REIT 13,840 750,128
HCP, Inc. REIT 21,660 714,780
HSBC Holdings PLC ADR 7,820 396,396
NYSE Euronext 30,690 908,731
- --------------------------------------------------------------------------------
5,599,007
- --------------------------------------------------------------------------------
HEALTH CARE -- 16.0%
Abbott Laboratories 17,450 919,266
Bristol-Myers Squibb Co. 22,865 610,495
Eli Lilly & Co. 30,085 1,089,679
Johnson & Johnson 18,050 1,176,860
Merck & Co., Inc. 30,085 1,123,675
Pfizer, Inc. 35,500 608,825
- --------------------------------------------------------------------------------
5,528,800
- --------------------------------------------------------------------------------
UTILITIES -- 15.4%
American Water Works Co., Inc. 45,730 995,085
National Grid PLC ADR 21,060 1,026,675
NiSource, Inc. 71,005 1,121,879
Northeast Utilities 22,265 615,405
ONEOK, Inc. 22,865 1,043,787
Pepco Holdings, Inc. 30,085 515,958
- --------------------------------------------------------------------------------
5,318,789
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 9.1%
Intel Corp. 39,110 870,589
Microchip Technology, Inc. 28,885 813,401
Paychex, Inc. 21,060 646,542
Taiwan Semiconductor Manufacturing
Co. Ltd. ADR 77,743 815,524
- --------------------------------------------------------------------------------
3,146,056
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 8.5%
AT&T, Inc. 31,290 808,534
BCE, Inc. 11,435 335,617
China Mobile Ltd. ADR 9,685 466,042
Tele Norte Leste Participacoes SA ADR 35,500 626,930
Windstream Corp. 65,590 714,275
- --------------------------------------------------------------------------------
2,951,398
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 6.4%
Genuine Parts Co. 19,255 813,524
McDonald's Corp. 10,230 682,546
Thomson Reuters Corp. 19,255 698,956
- --------------------------------------------------------------------------------
2,195,026
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 3.0%
Procter & Gamble Co./The 16,245 1,027,821
- --------------------------------------------------------------------------------
INDUSTRIALS -- 1.9%
R.R. Donnelley & Sons Co. 31,290 668,042
- --------------------------------------------------------------------------------
MATERIALS -- 1.7%
Sociedad Quimica y Minera de Chile SA ADR 15,905 594,688
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 33,966,613
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 3.5%
Touchstone Institutional
Money Market Fund^ 1,192,612 1,192,612
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 101.8%
(Cost $33,577,365) $ 35,159,225
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.8%) (625,980)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 34,533,245
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
ADR - American Depositary Receipt
PLC - Public Limited Company
REIT - Real Estate Investment Trust
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $33,966,613 $ -- $ -- $33,966,613
Investment Fund 1,192,612 -- -- 1,192,612
===========
$35,159,225
See accompanying notes to financial statements.
130
- --------------------------------------------------------------------------------
Portfolio of Investments
Sands Capital Select Growth Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 97.2% SHARES VALUE
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 32.7%
Apple, Inc.* 175,800 $ 41,300,694
Broadcom Corp. - Class A 306,400 10,166,352
FLIR Systems, Inc.* 280,200 7,901,640
Google, Inc. - Class A* 54,000 30,618,540
QUALCOMM, Inc. 571,400 23,993,086
Salesforce.com, Inc.* 326,700 24,322,815
Visa, Inc. - Class A 316,500 28,810,995
VMware, Inc. - Class A* 168,300 8,970,390
- --------------------------------------------------------------------------------
176,084,512
- --------------------------------------------------------------------------------
HEALTH CARE -- 19.5%
Allergan, Inc. 364,400 23,802,608
Genzyme Corp.* 428,200 22,193,606
Illumina, Inc.* 415,700 16,170,730
Intuitive Surgical, Inc.* 80,000 27,850,400
Varian Medical Systems, Inc.* 273,300 15,121,689
- --------------------------------------------------------------------------------
105,139,033
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 17.2%
Amazon.com, Inc.* 282,500 38,343,725
Las Vegas Sands Corp.* 630,000 13,324,500
NIKE, Inc. - Class B 245,100 18,014,850
Staples, Inc. 408,500 9,554,815
Starbucks Corp.* 555,800 13,489,266
- --------------------------------------------------------------------------------
92,727,156
- --------------------------------------------------------------------------------
ENERGY -- 13.0%
FMC Technologies, Inc.* 366,900 23,712,747
National-Oilwell Varco, Inc. 616,700 25,025,686
Schlumberger Ltd. 339,900 21,570,054
- --------------------------------------------------------------------------------
70,308,487
- --------------------------------------------------------------------------------
FINANCIALS -- 8.9%
Charles Schwab Corp. (The) 821,900 15,361,311
CME Group, Inc. 39,300 12,423,123
IntercontinentalExchange, Inc.* 178,800 20,057,784
- --------------------------------------------------------------------------------
47,842,218
- --------------------------------------------------------------------------------
MATERIALS -- 3.2%
Monsanto Co. 239,800 17,126,516
- --------------------------------------------------------------------------------
INDUSTRIALS -- 2.7%
Iron Mountain, Inc. + 214,700 5,882,780
WW Grainger, Inc. 81,200 8,779,344
- --------------------------------------------------------------------------------
14,662,124
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 523,890,046
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 3.8%
Invesco AIM Liquid Assets Portfolio** 5,289,928 $ 5,289,928
Touchstone Institutional
Money Market Fund^ 14,982,826 14,982,826
- --------------------------------------------------------------------------------
TOTAL INVESTMENT FUND $ 20,272,754
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 101.0%
(Cost $405,314,029) $ 544,162,800
LIABILITIES IN EXCESS OF OTHER ASSETS -- (1.0%) (5,135,597)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 539,027,203
================================================================================
* Non-income producing security.
+ All or a portion of the security is on loan. The total value of the
securities on loan as of March 31, 2010, was $5,176,572.
** Represents collateral for securities loaned.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $523,890,046 $ -- $ -- $523,890,046
Investment Fund 20,272,754 -- -- 20,272,754
============
$544,162,800
See accompanying notes to financial statements.
131
- --------------------------------------------------------------------------------
Portfolio of Investments
Short Duration Fixed Income Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 28.0%
FINANCIALS -- 16.0%
$ 350,000 American Express Bank, Ser BKnt,
0.380%, 6/12/12 (a) $ 345,085
315,000 Bank of New York Mellon Corp.,
4.950%, 11/1/12 341,522
150,000 Bank of New York Mellon Corp.,
5.125%, 11/1/11* 159,046
195,000 FIA Card Services NA,
6.625%, 6/15/12 211,227
235,000 General Electric Capital Corp.,
0.320%, 8/15/11 (a) 234,465
280,000 Goldman Sachs Group, Inc.,
6.875%, 1/15/11 293,127
275,000 Hudson United Bank,
7.000%, 5/15/12 293,101
215,000 ING USA Global Funding Trust,
4.500%, 10/1/10 218,616
320,000 Jefferies Group, Inc., 7.750%, 3/15/12 344,157
335,000 John Deere Capital Corp., Ser CORE,
2.000%, 4/15/11 334,513
285,000 Manufacturers & Traders Trust Co.,
1.791%, 4/1/13 (a) 277,520
300,000 MetLife of Connecticut
Institutional Funding Ltd.,
0.501%, 12/8/11 (a) 290,496
255,000 Morgan Stanley, 5.625%, 1/9/12 270,087
270,000 National City Bank of Kentucky,
6.300%, 2/15/11 277,497
120,000 New York Life Global Funding, 144a,
5.250%, 10/16/12 129,472
365,000 Northern Trust Corp., 5.300%, 8/29/11 384,762
450,000 PNC Funding Corp., 2.300%, 6/22/12 460,209
270,000 State Street Corp., 7.650%, 6/15/10 273,466
260,000 SunTrust Bank, Inc., 6.375%, 4/1/11 271,433
225,000 TD Ameritrade Holding Corp.,
2.950%, 12/1/12 227,028
300,000 Trustreet Properties, Inc.,
7.500%, 4/1/15 309,133
500,000 Wells Fargo & Co., Ser MTN,
3.980%, 10/29/10 509,420
275,000 Xlliac Global Funding, 144a,
4.800%, 8/10/10 277,741
- --------------------------------------------------------------------------------
6,733,123
- --------------------------------------------------------------------------------
INDUSTRIALS -- 2.8%
225,000 Cooper US, Inc., 5.250%, 11/15/12 244,046
146,255 Petrodrill Five Ltd., Ser 5,
4.390%, 4/15/16 150,982
175,007 Petrodrill Four Ltd., Ser 4,
4.240%, 1/15/16 181,500
225,000 Ryder System, Inc., 5.950%, 5/2/11 234,959
173,543 Systems 2001 AT LLC, 6.664%, 9/15/13 183,305
175,000 Tyco International Finance SA,
6.375%, 10/15/11 188,550
- --------------------------------------------------------------------------------
1,183,342
- --------------------------------------------------------------------------------
HEALTH CARE -- 2.5%
325,000 Baxter FinCo BV, 4.750%, 10/15/10 332,560
330,000 Express Scripts, Inc., 5.250%, 6/15/12 351,864
360,000 Hospira, Inc., 5.550%, 3/30/12 382,851
- --------------------------------------------------------------------------------
1,067,275
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 2.0%
620,000 CVS Caremark Corp., 0.552%, 6/1/10 (a) 620,090
215,000 Kroger Company, 6.800%, 4/1/11 226,289
- --------------------------------------------------------------------------------
846,379
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.9%
218,605 BellSouth Telecommunications, Inc.,
6.300%, 12/15/15 231,053
240,000 New Cingular Wireless Services, Inc.,
8.125%, 5/1/12 270,832
104,000 TELUS Corp., 8.000%, 6/1/11 111,927
175,000 Verizon New England, Inc.,
6.500%, 9/15/11 186,071
- --------------------------------------------------------------------------------
799,883
- --------------------------------------------------------------------------------
UTILITIES -- 1.2%
190,000 National Rural Utilities Cooperative
Finance Corp., Ser MTNC,
7.250%, 3/1/12 209,001
300,000 NSTAR Electric Co., 7.800%, 5/15/10 302,004
- --------------------------------------------------------------------------------
511,005
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 0.6%
245,000 Comcast Cable Communications LLC,
6.750%, 1/30/11 256,065
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 0.5%
200,000 Hewlett-Packard Co., 2.250%, 5/27/11 203,076
- --------------------------------------------------------------------------------
MATERIALS -- 0.5%
185,000 Dow Chemical Co., 7.600%, 5/15/14 211,195
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS $ 11,811,343
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 22.1%
480,000 American Express Credit
Account Master Trust, Ser 2005-4,
Class A, 0.300%, 1/15/15 (a) 477,813
260,000 Bank of America Auto Trust,
Ser 2008-1A, Class A3A, 144a,
4.970%, 9/20/12 268,898
175,000 CarMax Auto Owner Trust, Ser 2006-2,
Class B, 5.310%, 4/16/12 182,058
132
- --------------------------------------------------------------------------------
Short Duration Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES -- 22.1% (CONTINUED)
$ 106,956 CenterPoint Energy
Transition Bond Co. LLC, Ser 2005-A,
Class A2, 4.970%, 8/1/14 $ 112,416
270,000 Chase Issuance Trust, Ser 2007-A17,
Class A, 5.120%, 10/15/14 292,329
430,000 Chase Issuance Trust, Ser 2008-A11,
Class A11, 5.400%, 7/15/15 473,177
305,000 Chase Issuance Trust, Ser 2009-A3,
Class A3, 2.400%, 6/17/13 310,641
277,591 Chase Manhattan Auto Owner Trust,
Ser 2006-B, Class A4, 5.110%, 4/15/14 282,451
300,000 Chrysler Financial Auto
Securitization Trust, Ser 2009-A,
Class A3, 2.820%, 1/15/16 307,074
726,204 CNH Equipment Trust, Ser 2008-B,
Class A3B, 1.630%, 7/16/12 (a) 729,891
150,000 CNH Equipment Trust, Ser 2008-B,
Class A4A, 5.600%, 11/17/14 159,479
265,000 CNH Equipment Trust, Ser 2009-A,
Class A3, 5.280%, 11/15/12 275,570
325,000 CNH Equipment Trust, Ser 2009-B,
Class A4, 5.170%, 10/15/14 345,724
296,741 College & University Facility Loan Trust,
Ser 2, Class D, 4.000%, 6/1/18 296,741
425,000 Discover Card Master Trust, Ser 2008-A3,
Class A3, 5.100%, 10/15/13 443,309
240,000 Ford Credit Auto Lease Trust, Ser 2010-A,
Class A3, 144a, 1.620%, 11/15/13 240,483
133,859 Ford Credit Auto Owner Trust, Ser 2007-B,
Class A3A, 5.150%, 11/15/11 136,003
140,000 Ford Credit Auto Owner Trust, Ser 2009-B,
Class A4, 4.500%, 7/15/14 149,126
320,000 GE Capital Credit Card Master Note Trust,
Ser 2005-3, Class A, 4.130%, 6/15/13 322,250
300,000 GE Capital Credit Card Master Note Trust,
Ser 2009-2, Class A, 3.690%, 7/15/15 310,561
300,000 GE Equipment Midticket LLC, Ser 2009-1,
Class A3, 2.340%, 6/17/13 304,320
606,762 Harley-Davidson Motorcycle Trust,
Ser 2006-1, Class A2, 144a,
5.040%, 10/15/12 620,090
188,462 IMC Home Equity Loan Trust,
Ser 1997-5, Class A9, 7.310%, 11/20/28 180,781
227,912 John Deere Owner Trust, Ser 2007-A,
Class A4, 5.070%, 4/15/14 232,788
440,000 Nissan Auto Lease Trust, Ser 2009-A,
Class A4, 3.510%, 11/17/14 453,516
400,000 PG&E Energy Recovery Funding LLC,
Ser 2005-1, Class A4, 4.370%, 6/25/14 418,783
101,213 PG&E Energy Recovery Funding LLC,
Ser 2005-2, Class A2, 5.030%, 3/25/14 105,908
123,920 RSB Bondco LLC, Ser 2007-A,
Class A1, 5.470%, 10/1/14 130,988
375,000 Volkswagen Auto Lease Trust,
Ser 2009-A, Class A3, 3.410%, 4/16/12 385,192
196,599 Volkswagen Auto Loan Enhanced Trust,
Ser 2008-1, Class A3, 4.500%, 7/20/12 200,606
180,000 World Financial Network Credit Card
Master Trust, Ser 2009-B, Class A,
3.790%, 5/15/16 183,321
- --------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES $ 9,332,287
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS -- 20.7%
3,698 FHLMC, Pool #G10446, 6.500%, 2/1/11 3,728
91,445 FHLMC, Pool #D94598, 6.500%, 4/1/21 100,489
45,675 FHLMC, Pool #E97227, 7.000%, 9/1/14 46,544
112,530 FHLMC, Pool #C66916, 7.000%, 5/1/32 126,087
126,072 FHLMC, Pool #G30085, 7.500%, 10/1/17 141,207
165,493 FHLMC CMO/REMICS, Ser 2892,
Class A, Pool #FHR 2892 A,
5.000%, 5/15/21 168,831
299,736 FHLMC CMO/REMICS, Ser 3178,
Class MA, Pool #FHR 3178 MA,
6.000%, 10/15/26 302,207
399,455 FHLMC REMICS, Ser 2510,
Class TA, Pool #FHR 2510 TA,
4.000%, 6/15/32 413,671
112,609 FHLMC REMICS, Ser 2575,
Class QP, Pool #FHR 2575 QP,
4.500%, 11/15/31 114,019
2,334 FNMA, Pool #250477, 6.000%, 1/1/11 2,353
35,271 FNMA, Pool #313429, 7.000%, 3/1/12 36,623
68,228 FNMA, Pool #323441, 7.000%, 12/1/13 70,441
218,863 FNMA, Pool #546474, 7.000%, 1/1/15 231,766
7,627 FNMA, Pool #334593, 7.000%, 5/1/24 8,532
132,966 FNMA, Pool #323832, 7.500%, 7/1/29 150,259
164,359 FNMA, Pool #665773, 7.500%, 6/1/31 185,583
26 FNMA, Pool #N 6222, 9.000%, 4/1/16 26
184,385 FNMA CMO/REMICS, Ser 2003-66,
Class AP, Pool #FNR 2003-66 AP,
3.500%, 11/25/32 187,939
377,513 FNMA CMO/REMICS, Ser 2003-19,
Class ME, Pool #FNR 2003-19 ME,
4.000%, 1/25/33 391,520
564,074 FNMA CMO/REMICS, Ser 2003-42,
Class CA, Pool #FNR 2003-42 CA,
4.000%, 5/25/33 582,975
594,678 FNMA CMO/REMICS, Ser 2003-119,
Class PU, Pool #FNR 2003-119 PU,
4.000%, 11/25/33 617,842
658,119 FNMA CMO/REMICS, Ser 2002-71,
Class AP, Pool #FNR 2002-71 AP,
5.000%, 11/25/32 702,107
133
- --------------------------------------------------------------------------------
Short Duration Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS -- 20.7% (CONTINUED)
$ 253,287 GNMA, Ser 2004-43, Class A,
Pool #2004-43 A,
2.822%, 12/16/19 $ 255,350
365,620 GNMA, Ser 2004-97, Class AB,
Pool #2004-97 AB,
3.084%, 4/16/22 370,964
13,698 GNMA, Pool #G2 8426,
3.125%, 11/20/18 (a) 14,062
115,260 GNMA, Ser 2004-9, Class A,
Pool #2004-9 A,
3.360%, 8/16/22 116,007
208,776 GNMA, Ser 2006-19, Class A,
Pool #2006-19 A,
3.387%, 6/16/30 212,185
290,711 GNMA, Ser 2006-39, Class A,
Pool #2006-39 A,
3.772%, 6/16/25 297,831
131,060 GNMA, Ser 2004-6, Class B,
Pool #2004-6 B,
3.949%, 7/16/33 135,657
292,186 GNMA, Ser 2005-76, Class A,
Pool #2005-76 A,
3.963%, 5/16/30 302,851
240,309 GNMA, Ser 2005-79, Class A,
Pool #2005-79 A,
3.998%, 10/16/33 245,310
337,276 GNMA, Ser 2005-12, Class A,
Pool #2005-12 A,
4.044%, 5/16/21 344,307
636,012 GNMA, Ser 2002-72, Class AB,
Pool #2002-72 AB,
4.500%, 10/20/32 664,856
430,000 GNMA, Ser 2004-12, Class BA,
Pool #2004-12 BA,
4.807%, 8/16/32 452,000
3,994 GNMA, Pool #G2 2707, 5.500%, 1/20/14 4,242
3,150 GNMA, Pool #G2 2802, 5.500%, 7/20/14 3,345
53,083 GNMA, Pool #G2 2843, 5.500%, 11/20/14 56,376
56,578 GNMA, Pool #578189, 6.000%, 2/15/32 61,373
11,403 GNMA, Pool #462486, 6.500%, 1/15/13 12,331
32,708 GNMA, Pool #569337, 6.500%, 4/15/22 35,094
141,107 GNMA, Pool #780604, 7.000%, 7/15/12 148,417
64,014 GNMA, Pool #G2 814, 8.000%, 8/20/17 70,540
29,688 GNMA, Pool #780327, 8.000%, 11/15/17 32,846
66,981 GNMA, Pool #780322, 8.000%, 11/15/22 76,902
63,053 GNMA, Pool #344233, 8.000%, 2/15/23 72,517
125,329 GNMA, Pool #345123, 8.000%, 12/15/23 144,142
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED OBLIGATIONS $ 8,714,254
- --------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 10.7%
94,543 Banc of America Commercial
Mortgage, Inc., Ser 2000-2,
Class A2, 7.197%, 9/15/32 (a) 94,461
300,000 Banc of America Commercial
Mortgage, Inc., Ser 2002-2,
Class A3, 5.118%, 7/11/43 313,516
300,383 Credit Suisse First Boston
Mortgage Securities Corp.,
Ser 2001-CF2, Class A4,
6.505%, 2/15/34 308,467
275,000 Crown Castle Towers LLC,
Ser 2006-1A, Class AFX, 144a,
5.245%, 11/15/36 290,125
330,000 Crown Castle Towers LLC,
Ser 2006-1A, Class B, 144a,
5.362%, 11/15/36 348,975
407,466 First Union National Bank
Commercial Mortgage, Ser 2001-C2,
Class A2, 6.663%, 1/12/43 420,213
145,000 First Union National Bank
Commercial Mortgage, Ser 2001-C4,
Class A2, 6.223%, 12/12/33 152,289
150,000 GE Capital Commercial Mortgage Corp.,
Ser 2001-1, Class A2,
6.531%, 5/15/33 155,218
360,000 GE Capital Commercial Mortgage Corp.,
Ser 2001-3, Class A2,
6.070%, 6/10/38 378,895
320,000 JP Morgan Chase Commercial
Mortgage Securities Corp.,
Ser 2003-CB6, Class A2,
5.255%, 7/12/37 (a) 338,616
283,960 LB-UBS Commercial Mortgage Trust,
Ser 2001-C2, Class A2,
6.653%, 11/15/27 293,975
297,022 LB-UBS Commercial Mortgage Trust,
Ser 2003-C5, Class A3,
4.254%, 7/15/27 303,162
315,000 LB-UBS Commercial Mortgage Trust,
Ser 2003-C7, Class A3,
4.559%, 9/15/27 (a) 320,265
283,946 Merrill Lynch Mortgage Investors, Inc.,
Ser 1998-C1, Class A3,
6.720%, 11/15/26 (a) 307,907
263,254 Morgan Stanley Capital I,
Ser 2007-HQ11, Class A1,
5.246%, 2/12/44 269,340
120,000 SBA CMBS Trust, 5.451%, 11/15/36 124,050
90,000 SBA CMBS Trust, Ser 2006-1A,
Class A, 5.314%, 11/15/36 94,500
- --------------------------------------------------------------------------------
TOTAL COMMERCIAL
MORTGAGE-BACKED SECURITIES $ 4,513,974
- --------------------------------------------------------------------------------
134
- --------------------------------------------------------------------------------
Short Duration Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 8.0%
$ 260,000 FNMA, 5.250%, 8/1/12 $ 279,942
306,350 SBA, Ser 2008-10B, Class 1,
4.580%, 3/1/18 323,790
192,827 SBA, Ser 2005-P10A, Class 1,
4.638%, 2/10/15 202,006
229,332 SBA, Ser 2003-20E, Class 1,
4.640%, 5/1/23 239,546
255,389 SBA, Ser 2004-20B, Class 1,
4.720%, 2/1/24 267,211
212,283 SBA, Ser 2002-20J, Class 1,
4.750%, 10/1/22 222,497
258,410 BA, Ser 2005-20G, Class 1,
4.750%, 7/1/25 271,821
309,323 SBA, Ser 2007-10E, Class 1,
5.250%, 9/1/17 330,928
168,748 SBA, Ser 2006-P10A, Class 1,
5.408%, 2/10/16 179,947
235,761 SBA, Ser 98-L, 5.800%, 12/1/18 252,049
211,631 SBA, Ser 20C, 6.070%, 3/1/22 228,366
239,948 SBA, 6.140%, 1/1/22 259,137
286,344 Whc-Irs Trust, 6.980%, 5/15/15 309,109
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS $ 3,366,349
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS -- 6.2%
955,533 U.S. Treasury Inflation Indexed Bond,
1.875%, 7/15/13 1,010,999
450,000 U.S. Treasury Note, 0.875%, 2/28/11 451,846
300,000 U.S. Treasury Note, 4.125%, 8/31/12 320,625
800,000 U.S. Treasury Note, 2.750%, 10/31/13 823,187
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS $ 2,606,657
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 2.2%
LOUISIANA -- 0.4%
161,367 Louisiana Public Facilities Authority,
Ser 2008 Cl A 4.500%, 2/1/14 164,465
- --------------------------------------------------------------------------------
PENNSYLVANIA -- 1.8%
750,000 Commonwealth Fing Auth PA Rev,
Ser A 3.860%, 6/1/11 771,622
- --------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS $ 936,087
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES -- 1.2%
301,006 Community Program Loan Trust,
Ser 1987-A, Class A4,
4.500%, 10/1/18 302,771
215,332 Wells Fargo Mortgage Backed
Securities Trust, Ser 2006-16,
Class A12, 5.000%, 11/25/36 215,320
- --------------------------------------------------------------------------------
TOTAL MORTGAGE-BACKED SECURITIES $ 518,091
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 0.5%
201,017 Touchstone Institutional
Money Market Fund^ $ 201,017
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 99.6%
(Cost $40,978,335) $ 42,000,059
OTHER ASSETS IN
EXCESS OF LIABILITIES -- 0.4% 169,743
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 42,169,802
================================================================================
(a) Variable rate security - the rate reflected is the rate in effect as of
March 31, 2010.
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
CMO - Collateralized Mortgage Obligation
FNMA - Federal National Mortgage Association
FHLMC - Federal Home Loan Mortgage Corp.
GNMA - Government National Mortgage Association
LOC - Letter of Credit
MBIA - Insured by Municipal Bond Insurance Organization
144a - This is a restricted security that was sold in a transaction exempt
from Rule 144a of the Securities Act of 1933. This security may be sold
in transactions exempt from registration, normally to qualified
institutional buyers. At March 31, 2010, these securities were valued at
$2,175,784 or 5.2% of net assets.
135
- --------------------------------------------------------------------------------
Short Duration Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Corporate Bonds $ -- $11,811,343 $ -- $11,811,343
Asset-Backed Securities -- 9,332,287 -- 9,332,287
U.S. Government
Mortgage-Backed
Obligations -- 8,714,254 -- 8,714,254
Commercial
Mortgage-Backed
Securities -- 4,513,974 -- 4,513,974
U.S. Government
Agency
Obligations -- 3,366,349 -- 3,366,349
U.S. Treasury
Obligations -- 2,606,657 -- 2,606,657
Municipal Bonds -- 936,087 -- 936,087
Mortgage-Backed
Securities -- 518,091 -- 518,091
Investment Fund 201,017 -- -- 201,017
===========
$42,000,059
See accompanying notes to financial statements.
136
- --------------------------------------------------------------------------------
Portfolio of Investments
Small Cap Core Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 95.3% SHARES VALUE
- --------------------------------------------------------------------------------
INDUSTRIALS -- 20.6%
Alexander & Baldwin, Inc. 82,706 $ 2,733,433
Brink's Co./The 82,051 2,316,300
Corrections Corp. of America* 120,636 2,395,831
Force Protection, Inc.* 294,620 1,773,612
Knoll, Inc. 73,135 822,769
Korn/Ferry International* 67,742 1,195,646
Old Dominion Freight Line, Inc.* 14,968 499,782
Tredegar Corp. 124,391 2,124,598
- --------------------------------------------------------------------------------
13,861,971
- --------------------------------------------------------------------------------
FINANCIALS -- 20.5%
Alleghany Corp.* 4,907 1,436,439
Eaton Vance Corp. 42,963 1,440,979
Hatteras Financial Corp. REIT 62,895 1,620,804
Investors Title Co. 4,100 139,728
Markel Corp.* 1,758 658,652
Montpelier Re Holdings Ltd. 138,072 2,320,991
Tejon Ranch Co.* 51,097 1,559,481
UDR, Inc. REIT 89,611 1,580,738
Wesco Financial Corp. 3,956 1,525,038
White Mountains Insurance Group Ltd. 4,253 1,509,815
- --------------------------------------------------------------------------------
13,792,665
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 16.2%
Brink's Home Security Holdings, Inc.* 13,584 577,999
Cabela's, Inc.* 132,121 2,310,796
CarMax, Inc.* 66,000 1,657,920
Hasbro, Inc. 60,879 2,330,448
Service Corp. International 248,660 2,282,699
Sturm Ruger & Co., Inc. 146,645 1,758,274
- --------------------------------------------------------------------------------
10,918,136
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 11.1%
Energizer Holdings, Inc.* 26,472 1,661,383
Lance, Inc. 85,590 1,979,697
Pricesmart, Inc. 80,913 1,881,227
Universal Corp. 36,900 1,944,261
- --------------------------------------------------------------------------------
7,466,568
- --------------------------------------------------------------------------------
MATERIALS -- 9.6%
Albemarle Corp. 63,223 2,695,196
NewMarket Corp. 29,905 3,079,916
Vulcan Materials Co. 14,158 668,824
- --------------------------------------------------------------------------------
6,443,936
- --------------------------------------------------------------------------------
ENERGY -- 8.0%
Atwood Oceanics, Inc.* 79,112 2,739,649
Kinder Morgan Management LLC* 45,497 2,667,019
- --------------------------------------------------------------------------------
5,406,668
- --------------------------------------------------------------------------------
HEALTH CARE -- 5.0%
Owens & Minor, Inc. 28,636 1,328,424
Tenet Healthcare Corp.* 364,010 2,082,137
- --------------------------------------------------------------------------------
3,410,561
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 4.3%
Advent Software, Inc.* 29,403 1,315,784
Micrel, Inc. 10,546 112,421
Synaptics, Inc.* 53,012 1,463,661
- --------------------------------------------------------------------------------
2,891,866
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 64,192,371
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 22.7%
Touchstone Institutional
Money Market Fund^ 15,269,205 15,269,205
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 118.0%
(Cost $77,122,404) $ 79,461,576
LIABILITIES IN EXCESS OF OTHER ASSETS -- (18.0%) (12,112,006)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 67,349,570
================================================================================
* Non-income producing security.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
REIT - Real Estate Investment Trust
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $ 64,192,371 $ -- $ -- $ 64,192,371
Investment Fund 15,269,205 -- -- 15,269,205
============
$ 79,461,576
See accompanying notes to financial statements.
137
- --------------------------------------------------------------------------------
Portfolio of Investments
Small Cap Value Opportunities Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 97.7% SHARES VALUE
- --------------------------------------------------------------------------------
FINANCIALS -- 33.2%
Assured Guaranty Ltd. + 69,330 $ 1,523,180
BioMed Realty Trust, Inc. REIT 70,480 1,165,739
Boston Private Financial Holdings, Inc. + 142,560 1,050,667
Brandywine Realty Trust REIT 104,250 1,272,892
Cardtronics, Inc.* 50,490 634,659
Cash America International, Inc. 34,940 1,379,431
Conseco, Inc.* + 184,780 1,149,332
DCT Industrial Trust, Inc. REIT 174,570 913,001
DuPont Fabros Technology, Inc. REIT 34,030 734,708
East West Bancorp, Inc. 72,150 1,256,853
Evercore Partners, Inc. - Class A + 21,760 652,800
First Midwest Bancorp, Inc./IL + 76,800 1,040,640
First Niagara Financial Group, Inc. 86,380 1,228,324
Hancock Holding Co. 19,890 831,601
Hilltop Holdings, Inc.* 30,540 358,845
Knight Capital Group, Inc. - Class A* + 34,490 525,973
LaSalle Hotel Properties REIT 43,360 1,010,288
MF Global Holdings Ltd.* + 56,790 458,295
Mid-America Apartment
Communities, Inc. REIT 18,130 938,953
Montpelier Re Holdings Ltd. 30,070 505,477
National Penn Bancshares, Inc. + 65,090 449,121
Nelnet, Inc. - Class A 71,460 1,326,298
Prosperity Bancshares, Inc. + 12,690 520,290
Signature Bank* 31,170 1,154,848
SVB Financial Group* + 9,930 463,334
Washington Real Estate Investment
Trust REIT + 34,330 1,048,781
Webster Financial Corp. + 87,250 1,526,003
Wilshire Bancorp, Inc. + 36,630 404,029
- --------------------------------------------------------------------------------
25,524,362
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY -- 13.4%
ArvinMeritor, Inc.* + 95,220 1,271,187
Ascent Media Corp. - Class A* 27,800 757,550
bebe stores, inc. + 66,010 587,489
Collective Brands, Inc.* + 49,620 1,128,359
Dress Barn, Inc.* 23,360 611,098
HSN, Inc.* 27,200 800,768
Pier 1 Imports, Inc.* + 127,320 811,028
Ruby Tuesday, Inc.* 67,840 717,069
Sally Beauty Holdings, Inc.* + 45,300 404,076
Service Corp. International 144,430 1,325,867
Shutterfly, Inc.* 31,930 769,194
Talbots, Inc.* + 86,820 1,125,187
- --------------------------------------------------------------------------------
10,308,872
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY -- 12.7%
EarthLink, Inc. 100,810 860,917
Emulex Corp.* 94,610 1,256,421
Entegris, Inc.* + 174,850 881,244
Intersil Corp. - Class A 35,610 525,604
JDA Software Group, Inc.* 30,910 859,916
Net 1 UEPS Technologies, Inc.* 46,470 854,583
Polycom, Inc.* 18,760 573,681
Teradyne, Inc.* + 69,700 778,549
TIBCO Software, Inc.* + 114,850 1,239,232
Unisys Corp.* 27,705 966,627
Zoran Corp.* 87,950 946,342
- --------------------------------------------------------------------------------
9,743,116
- --------------------------------------------------------------------------------
MATERIALS -- 10.7%
Cabot Corp. 49,050 1,491,120
Domtar Corp.* 20,970 1,350,678
Ferro Corp.* 94,200 828,018
Globe Specialty Metals, Inc.* 85,410 955,738
Headwaters, Inc.* 156,890 720,125
Horsehead Holding Corp.* + 78,830 933,347
OM Group, Inc.* 22,310 755,863
Rockwood Holdings, Inc.* 45,230 1,204,022
- --------------------------------------------------------------------------------
8,238,911
- --------------------------------------------------------------------------------
INDUSTRIALS -- 9.5%
ACCO Brands Corp.* 120,500 923,030
Albany International Corp. - Class A 40,720 876,702
Altra Holdings, Inc.* 59,920 822,702
Atlas Air Worldwide Holdings, Inc.* + 25,520 1,353,836
Beacon Roofing Supply, Inc.* 20,250 387,382
Clean Harbors, Inc.* 8,730 485,039
Columbus McKinnon Corp.* 37,080 588,459
Esterline Technologies Corp.* 16,240 802,743
Woodward Governor Co. 32,500 1,039,350
- --------------------------------------------------------------------------------
7,279,243
- --------------------------------------------------------------------------------
HEALTH CARE -- 5.0%
Amedisys, Inc.* + 16,920 934,322
Gentiva Health Services, Inc.* 23,520 665,146
Healthspring, Inc.* 40,920 720,192
Impax Laboratories, Inc.* 39,830 712,161
Martek Biosciences Corp.* + 36,310 817,338
- --------------------------------------------------------------------------------
3,849,159
- --------------------------------------------------------------------------------
UTILITIES -- 4.6%
Avista Corp. 47,590 985,589
Cleco Corp. 30,200 801,810
Nicor, Inc. + 23,760 996,019
NorthWestern Corp. 27,960 749,608
- --------------------------------------------------------------------------------
3,533,026
- --------------------------------------------------------------------------------
ENERGY -- 4.6%
Berry Petroleum Co. - Class A 13,500 380,160
Complete Production Services, Inc.* 56,000 646,800
Nordic American Tanker Shipping Ltd. + 16,920 512,168
Petroleum Development Corp.* 53,880 1,248,400
Rex Energy Corp.* + 64,310 732,491
- --------------------------------------------------------------------------------
3,520,019
- --------------------------------------------------------------------------------
CONSUMER STAPLES -- 3.5%
B&G Foods, Inc. - Class A 78,130 818,802
Ruddick Corp. + 30,540 966,286
TreeHouse Foods, Inc.* 19,870 871,697
- --------------------------------------------------------------------------------
2,656,785
- --------------------------------------------------------------------------------
138
- --------------------------------------------------------------------------------
Small Cap Value Opportunities Fund (Continued)
- --------------------------------------------------------------------------------
MARKET
COMMON STOCKS -- 97.7% (Continued) SHARES VALUE
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 0.5%
AboveNet, Inc.* + 6,680 $ 338,876
- --------------------------------------------------------------------------------
TOTAL COMMON STOCKS $ 74,992,369
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 21.8%
Invesco AIM Liquid Assets Portfolio** 14,865,099 14,865,099
Touchstone Institutional
Money Market Fund^ 1,914,659 1,914,659
- --------------------------------------------------------------------------------
TOTAL INVESTMENT FUND $ 16,779,758
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 119.5%
(Cost $76,180,706) $ 91,772,127
LIABILITIES IN EXCESS OF OTHER ASSETS -- (19.5%) (14,948,985)
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 76,823,142
================================================================================
+ All or a portion of the security is on loan. The total value of the
securities on loan as of March 31, 2010, was $14,433,930.
* Non-income producing security.
** Represents collateral for securities loaned.
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
REIT - Real Estate Investment Trust
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
Common Stocks $ 74,992,369 $ -- $ -- $ 74,992,369
Investment Fund 16,779,758 -- -- 16,779,758
============
$ 91,772,127
See accompanying notes to financial statements.
139
- --------------------------------------------------------------------------------
Portfolio of Investments
Ultra Short Duration Fixed Income Fund - March 31, 2010 (Unaudited)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS -- 57.9%
$ 2,708,017 FHLMC, Pool #781515,
2.746%, 4/1/34 (a) $ 2,802,441
737,503 FHLMC, Pool #847795,
2.907%, 4/1/35 (a) 769,350
363,083 FHLMC, Pool #M80853,
3.000%, 9/1/10 369,114
1,052,426 FHLMC, Pool #1L1288,
3.184%, 5/1/36 (a) 1,082,589
604,842 FHLMC, Pool #848088,
3.254%, 4/1/35 (a) 625,196
405,587 FHLMC, Pool #1H2524,
3.390%, 8/1/35 (a) 422,594
2,410,115 FHLMC, Pool #1Q0187,
3.829%, 12/1/36 (a) 2,508,225
1,753,546 FHLMC, Pool #1L0087,
5.043%, 6/1/35 (a) 1,847,118
994,822 FHLMC, Pool #1G1471,
5.443%, 1/1/37 (a) 1,049,825
1,567,497 FHLMC, Pool #1J1813,
5.788%, 8/1/37 (a) 1,662,017
12,707 FHLMC, Pool #E64944,
7.000%, 7/1/11 13,262
187,930 FHLMC, Pool #G11072,
7.500%, 12/1/15 204,437
15,078 FHLMC, Pool #B15413,
8.000%, 3/1/11 15,408
2,338,212 FHLMC CMO/REMICS, Ser 2770,
Class FH, Pool #FHR 2770 FH,
0.630%, 3/15/34 (a) 2,367,633
103,462 FHLMC CMO/REMICS, Ser 2925,
Class CF, Pool #FHR 2925 CF,
0.730%, 1/15/35 (a) 103,144
3,119,285 FHLMC CMO/REMICS, Ser 2571,
Class FN, Pool #FHR 2571 FN,
0.880%, 8/15/32 (a) 3,123,118
445,927 FHLMC CMO/REMICS, Ser 3033,
Class BY, Pool #FHR 3033 BY,
2.479%, 9/15/35 (a) 434,113
1,745,804 FHLMC CMO/REMICS, Ser 2628,
Class BG, Pool #FHR 2628 BG,
3.500%, 7/15/16 1,780,648
1,480,894 FHLMC CMO/REMICS, Ser 2611,
Class KC, Pool #FHR 2611 KC,
3.500%, 1/15/17 1,506,057
786,050 FHLMC CMO/REMICS, Ser 2590,
Class UL, Pool #FHR 2590 UL,
3.750%, 3/15/32 801,570
468,744 FHLMC CMO/REMICS, Ser 2632,
Class NE, Pool #FHR 2632 NE,
4.000%, 6/15/13 476,657
253,400 FHLMC CMO/REMICS, Ser 2682,
Class HG, Pool #FHR 2682 HG,
4.000%, 4/15/17 259,663
914,578 FHLMC CMO/REMICS, Ser 2594,
Class YA, Pool #FHR 2594 YA,
4.000%, 4/15/23 951,862
896,739 FHLMC CMO/REMICS, Ser 2586,
Class WA, Pool #FHR 2586 WA,
4.000%, 12/15/32 926,313
1,302,783 FHLMC CMO/REMICS, Ser 2833,
Class NA, Pool #FHR 2833 NA,
4.500%, 5/15/17 1,339,389
700,013 FHLMC CMO/REMICS, Ser 2705,
Class LB, Pool #FHR 2705 LB,
4.500%, 9/15/26 708,110
570,635 FHLMC CMO/REMICS, Ser 2575,
Class LM, Pool #FHR 2575 LM,
4.500%, 5/15/32 591,554
707,952 FHLMC CMO/REMICS, Ser 2547,
Class HB, Pool #FHR 2547 HB,
5.000%, 8/15/16 720,643
750,397 FHLMC CMO/REMICS, Ser 3073,
Class LA, Pool #FHR 3073 LA,
5.000%, 12/15/17 764,157
545,438 FHLMC CMO/REMICS, Ser 2904,
Class CM, Pool #FHR 2904 CM,
5.000%, 1/15/18 561,413
1,104,145 FHLMC CMO/REMICS, Ser 2904,
Class CA, Pool #FHR 2904 CA,
5.000%, 4/15/19 1,160,385
1,489,438 FHLMC CMO/REMICS, Ser 2892,
Class A, Pool #FHR 2892 A,
5.000%, 5/15/21 1,519,481
1,166,726 FHLMC CMO/REMICS, Ser 2660,
Class PB, Pool #FHR 2660 PB,
5.000%, 8/15/26 1,180,586
795,689 FHLMC CMO/REMICS, Ser 3033,
Class AT, Pool #FHR 3033 AT,
5.000%, 1/15/27 800,950
6,504,985 FHLMC CMO/REMICS, Ser 2625,
Class IO, Pool #FHR 2625 IO,
5.000%, 12/15/31 (b) 846,071
920,457 FHLMC CMO/REMICS, Ser 3196,
Class PA, Pool #FHR 3196 PA,
5.250%, 8/15/11 944,812
1,271,614 FHLMC CMO/REMICS, Ser 3215,
Class EP, Pool #FHR 3215 EP,
5.375%, 9/15/11 1,314,123
535,398 FHLMC CMO/REMICS, Ser 3197,
Class AB, Pool #FHR 3197 AB,
5.500%, 8/15/13 547,220
515,669 FHLMC CMO/REMICS, Ser 3178,
Class PA, Pool #FHR 3178 PA,
5.500%, 10/15/27 530,964
140
- --------------------------------------------------------------------------------
Ultra Short Duration Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS -- 57.9% (CONTINUED)
$ 1,688,350 FHLMC CMO/REMICS, Ser 3242,
Class NC, Pool #FHR 3242 NC,
5.750%, 12/15/28 $ 1,743,905
646,541 FHLMC CMO/REMICS, Ser 3178,
Class MA, Pool #FHR 3178 MA,
6.000%, 10/15/26 651,870
309,128 FHLMC CMO/REMICS, Ser 3171,
Class NE, Pool #FHR 3171 NE,
6.000%, 5/15/27 311,519
5,103,278 FNMA, Pool #813844,
2.121%, 1/1/35 (a) 5,288,632
1,087,621 FNMA, Pool #810896,
2.184%, 1/1/35 (a) 1,099,451
371,355 FNMA, Pool #784365,
2.238%, 5/1/34 (a) 379,636
538,514 FNMA, Pool #806765,
2.262%, 11/1/34 (a) 553,281
976,420 FNMA, Pool #813714,
2.330%, 1/1/35 (a) 999,445
281,042 FNMA, Pool #681842,
2.500%, 2/1/33 (a) 289,334
732,369 FNMA, Pool #725245,
2.622%, 2/1/34 (a) 756,136
412,784 FNMA, Pool #804001,
2.839%, 10/1/34 (a) 427,114
524,942 FNMA, Pool #735539,
2.919%, 4/1/35 (a) 542,586
456,182 FNMA, Pool #1B2629,
3.050%, 11/1/34 (a) 470,575
338,276 FNMA, Pool #743207,
3.053%, 10/1/33 (a) 349,488
328,476 FNMA, Pool #809897,
3.090%, 3/1/35 (a) 332,784
860,757 FNMA, Pool #679742,
3.998%, 1/1/40 (a) 892,073
326,675 FNMA, Pool #888548,
4.663%, 5/1/35 (a) 338,981
3,488,253 FNMA, Pool #825395,
4.823%, 7/1/35 (a) 3,609,854
467,137 FNMA, Pool #828480,
4.955%, 6/1/35 (a) 480,378
81,230 FNMA, Pool #519992, 7.000%, 10/1/14 87,800
7,238 FNMA, Pool #253472, 7.500%, 9/1/10 7,301
77,690 FNMA, Pool #535219, 7.500%, 3/1/15 85,035
65,113 FNMA, Pool #534851, 7.500%, 4/1/15 71,270
343,185 FNMA, Pool #555646, 7.500%, 9/1/16 367,524
1,483 FNMA, Pool #535635, 8.500%, 6/1/12 1,564
3,514,682 FNMA CMO/REMICS, Ser 2003-81,
Class FE, Pool #FNR 2003-81 FE,
0.746%, 9/25/33 (a) 3,541,259
2,868,507 FNMA CMO/REMICS, Ser 2004-96,
Class LF, Pool #FNR 2004-96 LF,
1.246%, 12/25/34 (a) 2,917,219
3,844,103 FNMA CMO/REMICS, Ser 2003-69,
Class NF, Pool #FNR 2003-69 NF,
1.729%, 7/25/33 (a) 3,899,850
404,781 FNMA CMO/REMICS, Ser 2003-34,
Class AD, Pool #FNR 2003-34 AD,
4.000%, 1/25/32 413,230
432,271 FNMA CMO/REMICS, Ser 2003-19,
Class ME, Pool #FNR 2003-19 ME,
4.000%, 1/25/33 448,310
727,057 FNMA CMO/REMICS, Ser 2003-33,
Class AU, Pool #FNR 2003-33 AU,
4.000%, 3/25/33 755,012
1,127,504 FNMA CMO/REMICS, Ser 2003-119,
Class PU, Pool #FNR 2003-119 PU,
4.000%, 11/25/33 1,171,424
519,945 FNMA CMO/REMICS, Ser 2003-33,
Class AM, Pool #FNR 2003-33 AM,
4.250%, 5/25/33 541,728
449,068 FNMA CMO/REMICS, Ser 2003-81,
Class NY, Pool #FNR 2003-81 NY,
4.500%, 9/25/16 463,702
632,400 FNMA CMO/REMICS, Ser 2003-25,
Class CE, Pool #FNR 2003-25 CE,
4.500%, 3/25/17 648,446
539,660 FNMA CMO/REMICS, Ser 2003-106,
Class WC, Pool #FNR 2003-106 WC,
4.500%, 8/25/18 544,784
2,720,021 FNMA CMO/REMICS, Ser 2008-35,
Class IO, Pool #FNR 2008-35 IO,
4.500%, 4/25/23 (b) 265,927
914,940 FNMA CMO/REMICS, Ser 2008-95,
Class AD, Pool #FNR 2008-95 AD,
4.500%, 12/25/23 961,889
1,955,207 FNMA CMO/REMICS, Ser 2006-26,
Class QA, Pool #FNR 2006-26 QA,
5.500%, 6/25/26 2,001,651
522,239 FNMA CMO/REMICS, Ser 2006-2,
Class GH, Pool #FNR 2006-2 GH,
5.500%, 6/25/32 534,304
686,536 FNMA CMO/REMICS, Ser 2007-9,
Class YA, Pool #FNR 2007-9 YA,
5.500%, 3/25/37 702,111
102,584 FNMA CMO/REMICS, Ser 2005-108,
Class GU, Pool #FNR 2005-108 GU,
5.750%, 7/25/35 102,838
757,363 FNMA CMO/REMICS, Ser 2006-73,
Class PJ, Pool #FNR 2006-73 PJ,
6.000%, 2/25/28 777,585
1,430,186 FNMA CMO/REMICS, Ser 2006-3,
Class NA, Pool #FNR 2006-3 NA,
6.000%, 4/25/28 1,446,734
141
- --------------------------------------------------------------------------------
Ultra Short Duration Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS -- 57.9% (CONTINUED)
$ 901,312 GNMA, Pool #G2 80889,
3.000%, 4/20/34 (a) $ 926,343
2,113 GNMA, Pool #G2 8404,
3.625%, 9/20/18 (a) 2,201
29,946 GNMA, Pool #G2 8287,
4.000%, 11/20/17 (a) 30,805
36,562 GNMA, Pool #G2 8297,
4.000%, 12/20/17 (a) 37,632
23,776 GNMA, Pool #G2 8405,
4.000%, 9/20/18 (a) 24,504
59,352 GNMA, Pool #G2 8366,
4.375%, 6/20/18 (a) 61,464
4,566 GNMA, Pool #G2 8462,
4.375%, 2/20/19 (a) 4,747
21,939 GNMA, Pool #G2 8103,
4.500%, 2/20/16 (a) 22,765
71,770 GNMA, Pool #G2 8333,
4.500%, 3/20/18 (a) 74,402
42,206 GNMA, Pool #G2 8345,
4.500%, 4/20/18 (a) 43,700
21,528 GNMA, Pool #G2 8489,
4.500%, 4/20/19 (a) 22,349
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED OBLIGATIONS $ 83,158,663
- --------------------------------------------------------------------------------
COMMERCIAL MORTGAGE-BACKED SECURITIES -- 5.8%
1,075,207 Banc of America Commercial
Mortgage, Inc., Ser 2001-1, Class A2,
6.503%, 4/15/36 1,109,518
970,918 Bear Stearns Commercial Mortgage
Securities, Ser 2000-WF2, Class A2,
7.320%, 10/15/32 (a) 980,966
1,460,808 Bear Stearns Commercial Mortgage
Securities, Ser 2006-PW12, Class A1,
5.546%, 9/11/38 (a) 1,484,566
711,894 GE Capital Commercial Mortgage Corp.,
Ser 2001-3, Class A1, 5.560%, 6/10/38 725,594
660,958 GMAC Commercial Mortgage
Securities, Inc., Ser 2001-C2, Class A2,
6.700%, 4/15/34 690,316
1,487,478 JP Morgan Chase Commercial Mortgage
Securities Corp., Ser 2004-C3, Class A2,
4.223%, 1/15/42 1,487,185
1,140,417 PNC Mortgage Acceptance Corp.,
Ser 2000-C2, Class A2,
7.300%, 10/12/33 1,152,167
64,887 Salomon Brothers Mortgage
Securities VII, Inc., Ser 2000-C2,
Class A2, 7.455%, 7/18/33 64,813
575,097 Wachovia Bank Commercial Mortgage
Trust, Ser 2004-C10, Class A2,
3.857%, 2/15/41 575,930
- --------------------------------------------------------------------------------
TOTAL COMMERCIAL
MORTGAGE-BACKED SECURITIES $ 8,271,055
- --------------------------------------------------------------------------------
CORPORATE BONDS -- 5.2%
INDUSTRIALS -- 1.7%
500,000 Allied Waste North America, Inc.,
6.500%, 11/15/10 516,680
1,200,000 BAE Systems Holdings, Inc.,
4.750%, 8/15/10 1,216,256
710,000 Burlington Northern Santa Fe LLC,
6.750%, 7/15/11 755,427
- --------------------------------------------------------------------------------
2,488,363
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES -- 1.2%
1,645,000 Deutsche Telekom International
Finance BV, 8.500%, 6/15/10 1,669,325
- --------------------------------------------------------------------------------
FINANCIALS -- 1.2%
548,000 Mellon Funding Corp., 6.400%, 5/14/11 579,381
1,105,000 Toyota Motor Credit Corp.,
5.450%, 5/18/11 1,154,654
- --------------------------------------------------------------------------------
1,734,035
- --------------------------------------------------------------------------------
UTILITIES -- 1.1%
680,000 Appalachian Power Co., Ser J,
4.400%, 6/1/10 683,689
920,000 Enterprise Products Operating LLC,
Ser K, 4.950%, 6/1/10 924,772
- --------------------------------------------------------------------------------
1,608,461
- --------------------------------------------------------------------------------
TOTAL CORPORATE BONDS $ 7,500,184
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS -- 5.0%
2,000,000 FHLMC, 4.000%, 11/5/13 2,007,358
2,000,000 FHLMC, 6.875%, 9/15/10 2,061,636
2,000,000 FNMA, 3.250%, 8/12/10 2,021,806
1,000,000 FNMA , 6.250%, 2/1/11 1,048,280
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS $ 7,139,080
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES -- 3.5%
554,900 American Home Mortgage Investment
Trust, Ser 2005-2, Class 5A3,
5.077%, 9/25/35 558,674
687,982 Banc of America Mortgage
Securities, Inc., Ser 2004-3,
Class 1A23, 4.500%, 4/25/34 690,210
459,949 Citicorp Mortgage Securities, Inc.,
Ser 2003-11, Class 2A2,
5.000%, 12/25/33 465,425
142
- --------------------------------------------------------------------------------
Ultra Short Duration Fixed Income Fund (Continued)
- --------------------------------------------------------------------------------
PRINCIPAL MARKET
AMOUNT VALUE
- --------------------------------------------------------------------------------
MORTGAGE-BACKED SECURITIES -- 3.5% (CONTINUED)
$ 296,724 First Horizon Asset Securities, Inc.,
Ser 2005-2, Class 1A1,
5.500%, 5/25/35 $ 296,854
839,758 Prime Mortgage Trust, Ser 2003-3,
Class A1, 5.250%, 1/25/34 837,102
1,314,293 Wells Fargo Mortgage Backed
Securities Trust, Ser 2003-17,
Class 1A10, 5.250%, 1/25/14 1,336,106
861,330 Wells Fargo Mortgage Backed
Securities Trust, Ser 2006-16,
Class A12, 5.000%, 11/25/36 861,283
- --------------------------------------------------------------------------------
TOTAL MORTGAGE-BACKED SECURITIES $ 5,045,654
- --------------------------------------------------------------------------------
MUNICIPAL BONDS -- 2.7%
CONNECTICUT -- 0.7%
1,000,000 Waterbury Taxable Pension,
Ser 2009 2.707%, 12/1/10 1,006,300
- --------------------------------------------------------------------------------
PENNSYLVANIA -- 2.0%
2,750,000 Commonwealth Fing Auth PA
Rev, Ser A 3.860%, 6/1/11 2,829,283
- --------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS $ 3,835,583
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITY -- 0.5%
752,997 Madison Avenue Manufactured
Housing Contract, Ser 2002-A,
Class A1, 0.596%, 3/25/32 (a) 722,925
- --------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES $ 722,925
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 16.0%
23,000,000 FHLMC, 0.000%, 4/1/10 23,000,000
- --------------------------------------------------------------------------------
MARKET
SHARES VALUE
- --------------------------------------------------------------------------------
INVESTMENT FUND -- 2.4%
3,504,313 Touchstone Institutional Money
Market Fund^ $ 3,504,313
- --------------------------------------------------------------------------------
TOTAL INVESTMENT SECURITIES -- 99.0%
(Cost $141,356,132) $ 142,177,457
OTHER ASSETS IN
EXCESS OF LIABILITIES -- 1.0% 1,378,796
- --------------------------------------------------------------------------------
NET ASSETS -- 100.0% $ 143,556,253
================================================================================
(a) Variable rate security - the rate reflected is the rate in effect as of
March 31, 2010.
(b) IO - Interest Only
^ Affiliated Fund, sub-advised by Fort Washington Investment Advisors, Inc.
See Note 4.
PORTFOLIO ABBREVIATIONS:
CMO - Collateralized Mortgage Obligation
FNMA - Federal National Mortgage Association
FHLMC - Federal Home Loan Mortgage Corp.
GNMA - Government National Mortgage Association
OTHER INFORMATION:
The inputs or methodology used for valuing securities may not be an indication
of the risk associated with investing in those securities. For more information
on valuation inputs, and their aggregation into the levels used in the table
below, please refer to the security valuation section in the accompanying notes
to financial statements.
VALUATION INPUTS AT REPORTING DATE:
DESCRIPTION LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- --------------------------------------------------------------------------------
U.S. Government
Mortgage-Backed
Obligations $ -- $ 83,158,663 $ -- $ 83,158,663
Short-Term
Investments -- 23,000,000 -- 23,000,000
Commercial
Mortgage-Backed
Securities -- 8,271,055 -- 8,271,055
Corporate Bonds -- 7,500,184 -- 7,500,184
U.S. Government
Agency
Obligations -- 7,139,080 -- 7,139,080
Mortgage-Backed
Securities -- 5,045,654 -- 5,045,654
Municipal Bonds -- 3,835,583 -- 3,835,583
Investment
Fund 3,504,313 -- -- 3,504,313
Asset-Backed
Securities -- 722,925 -- 722,925
============
$142,177,457
See accompanying notes to financial statements.
143
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Other Items (Unaudited)
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PROXY VOTING DISCLOSURE
The Sub-Advisor is responsible for exercising the voting rights associated with
the securities purchased and held by the Funds. A description of the policies
and procedures that the Sub-Advisor uses in fulfilling this responsibility and
information regarding how those proxies were voted during the twelve month
period ended June 30, are available without charge upon request by calling toll
free 1.800.543.0407. These items are also available on the Securities and
Exchange Commission's (the Commission) website at http://www.sec.gov.
QUARTERLY PORTFOLIO DISCLOSURE
The Trust files a complete listing of portfolio holdings for each Fund as of the
end of the first and third quarters of each fiscal year on Form N-Q. The
complete listing (i) is available on the Commission's website; (ii) may be
reviewed and copied at the Commission's Public Reference Room in Washington, DC;
and (iii) will be made available to shareholders upon request by calling
1.800.543.0407. Information on the operation of the Public Reference Room may be
obtained by calling 1-800-SEC-0330.
SCHEDULE OF SHAREHOLDER EXPENSES
As a shareholder of the Funds, you incur two types of costs: (1) transaction
costs, including reinvested dividends or other distributions; and (2) ongoing
costs, including investment advisory fees; distribution (12b-1) fees; and other
Fund expenses. This example is intended to help you understand your ongoing
costs (in dollars) of investing in the Funds and to compare these costs with the
ongoing costs of investing in other mutual funds.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, 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 under the heading entitled "Expenses Paid During the Six
Months Ended March 31, 2010" to estimate the expenses you paid on your account
during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on the Funds' actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the Funds' 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 the Funds and other funds. To do so, compare this 5% hypothetical
example with the 5% hypothetical examples that appear in the shareholder reports
of the other funds.
144
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Other Items (Continued)
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SCHEDULE OF SHAREHOLDER EXPENSES (CONTINUED)
EXPENSES
NET EXPENSE BEGINNING ENDING PAID DURING
RATIO ACCOUNT ACCOUNT THE SIX MONTHS
ANNUALIZED VALUE VALUE ENDED
MARCH 31, OCTOBER 1, MARCH 31, MARCH 31,
2010 2009 2010 2010*
- ---------------------------------------------------------------------------------------------------------------
CAPITAL APPRECIATION FUND
Class A Actual 1.19% $ 1,000.00 $ 1,129.00 $ 6.32
Class A Hypothetical 1.19% $ 1,000.00 $ 1,019.00 $ 5.99
Class C Actual 1.93% $ 1,000.00 $ 1,125.00 $ 10.23
Class C Hypothetical 1.93% $ 1,000.00 $ 1,015.31 $ 9.70
Class Y Actual 0.94% $ 1,000.00 $ 1,131.30 $ 4.99
Class Y Hypothetical 0.94% $ 1,000.00 $ 1,020.24 $ 4.73
Institutional Class Actual 0.79% $ 1,000.00 $ 1,132.00 $ 4.20
Institutional Class Hypothetical 0.79% $ 1,000.00 $ 1,020.99 $ 3.98
CORE PLUS FIXED INCOME FUND
Class A Actual 0.95% $ 1,000.00 $ 1,017.00 $ 4.78
Class A Hypothetical 0.95% $ 1,000.00 $ 1,020.19 $ 4.78
Class C Actual 1.70% $ 1,000.00 $ 1,013.40 $ 8.53
Class C Hypothetical 1.70% $ 1,000.00 $ 1,016.45 $ 8.55
Class Y Actual 0.70% $ 1,000.00 $ 1,019.20 $ 3.52
Class Y Hypothetical 0.70% $ 1,000.00 $ 1,021.44 $ 3.53
Institutional Class Actual 0.50% $ 1,000.00 $ 1,018.10 $ 2.52
Institutional Class Hypothetical 0.50% $ 1,000.00 $ 1,022.44 $ 2.52
EMERGING MARKETS EQUITY FUND
Class A Actual 1.73% $ 1,000.00 $ 1,154.00 $ 9.29
Class A Hypothetical 1.73% $ 1,000.00 $ 1,016.31 $ 8.70
Class C Actual 2.48% $ 1,000.00 $ 1,148.00 $ 13.28
Class C Hypothetical 2.48% $ 1,000.00 $ 1,012.57 $ 12.44
Class Y Actual 1.48% $ 1,000.00 $ 1,155.00 $ 7.95
Class Y Hypothetical 1.48% $ 1,000.00 $ 1,017.55 $ 7.44
Institutional Class Actual 1.34% $ 1,000.00 $ 1,156.00 $ 7.20
Institutional Class Hypothetical 1.34% $ 1,000.00 $ 1,018.25 $ 6.74
FOCUSED EQUITY FUND
Class A Actual** 0.88% $ 1,000.00 $ 1,093.00 $ 2.27
Class A Hypothetical** 0.88% $ 1,000.00 $ 1,020.54 $ 4.43
Class C Actual** 1.31% $ 1,000.00 $ 1,092.00 $ 3.38
Class C Hypothetical** 1.31% $ 1,000.00 $ 1,018.40 $ 6.59
Class Y Actual** 0.64% $ 1,000.00 $ 1,094.00 $ 1.65
Class Y Hypothetical** 0.64% $ 1,000.00 $ 1,021.74 $ 3.23
Institutional Class Actual** 0.60% $ 1,000.00 $ 1,094.00 $ 1.55
Institutional Class Hypothetical** 0.60% $ 1,000.00 $ 1,021.94 $ 3.02
145
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Other Items (Continued)
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SCHEDULE OF SHAREHOLDER EXPENSES (CONTINUED)
EXPENSES
NET EXPENSE BEGINNING ENDING PAID DURING
RATIO ACCOUNT ACCOUNT THE SIX MONTHS
ANNUALIZED VALUE VALUE ENDED
MARCH 31, OCTOBER 1, MARCH 31, MARCH 31,
2010 2009 2010 2010*
- ---------------------------------------------------------------------------------------------------------------
GLOBAL EQUITY FUND
Class A Actual 1.34% $ 1,000.00 $ 1,030.00 $ 6.78
Class A Hypothetical 1.34% $ 1,000.00 $ 1,018.25 $ 6.74
Class C Actual 2.08% $ 1,000.00 $ 1,026.00 $ 10.51
Class C Hypothetical 2.08% $ 1,000.00 $ 1,014.56 $ 10.45
Class Y Actual 1.08% $ 1,000.00 $ 1,031.20 $ 5.47
Class Y Hypothetical 1.08% $ 1,000.00 $ 1,019.55 $ 5.44
Institutional Class Actual 0.93% $ 1,000.00 $ 1,031.00 $ 4.71
Institutional Class Hypothetical 0.93% $ 1,000.00 $ 1,020.29 $ 4.68
GLOBAL REAL ESTATE FUND
Class A Actual 1.38% $ 1,000.00 $ 1,084.80 $ 7.17
Class A Hypothetical 1.38% $ 1,000.00 $ 1,018.05 $ 6.94
Class C Actual 2.13% $ 1,000.00 $ 1,081.10 $ 11.05
Class C Hypothetical 2.13% $ 1,000.00 $ 1,014.31 $ 10.70
Class Y Actual 1.13% $ 1,000.00 $ 1,086.50 $ 5.88
Class Y Hypothetical 1.13% $ 1,000.00 $ 1,019.30 $ 5.69
Institutional Class Actual 0.98% $ 1,000.00 $ 1,086.90 $ 5.10
Institutional Class Hypothetical 0.98% $ 1,000.00 $ 1,020.04 $ 4.94
HEALTHCARE AND BIOTECHNOLOGY FUND
Class A Actual 1.55% $ 1,000.00 $ 1,103.80 $ 8.13
Class A Hypothetical 1.55% $ 1,000.00 $ 1,017.20 $ 7.80
Class C Actual 2.30% $ 1,000.00 $ 1,100.50 $ 12.04
Class C Hypothetical 2.30% $ 1,000.00 $ 1,013.46 $ 11.55
INTERMEDIATE FIXED INCOME FUND
Institutional Class Actual 0.40% $ 1,000.00 $ 1,023.30 $ 2.02
Institutional Class Hypothetical 0.40% $ 1,000.00 $ 1,022.94 $ 2.02
INTERNATIONAL FIXED INCOME
Class A Actual 1.09% $ 1,000.00 $ 1,013.00 $ 5.47
Class A Hypothetical 1.09% $ 1,000.00 $ 1,019.50 $ 5.49
Class C Actual 1.84% $ 1,000.00 $ 1,008.40 $ 9.21
Class C Hypothetical 1.84% $ 1,000.00 $ 1,015.76 $ 9.25
Class Y Actual 0.84% $ 1,000.00 $ 1,014.30 $ 4.22
Class Y Hypothetical 0.84% $ 1,000.00 $ 1,020.74 $ 4.23
Institutional Class Actual 0.69% $ 1,000.00 $ 1,015.10 $ 3.47
Institutional Class Hypothetical 0.69% $ 1,000.00 $ 1,021.49 $ 3.48
146
- --------------------------------------------------------------------------------
Other Items (Continued)
- --------------------------------------------------------------------------------
SCHEDULE OF SHAREHOLDER EXPENSES (CONTINUED)
EXPENSES
NET EXPENSE BEGINNING ENDING PAID DURING
RATIO ACCOUNT ACCOUNT THE SIX MONTHS
ANNUALIZED VALUE VALUE ENDED
MARCH 31, OCTOBER 1, MARCH 31, MARCH 31,
2010 2009 2010 2010*
- ---------------------------------------------------------------------------------------------------------------
INTERNATIONAL GROWTH FUND
Class A Actual 1.35% $ 1,000.00 $ 1,058.20 $ 6.93
Class A Hypothetical 1.35% $ 1,000.00 $ 1,018.20 $ 6.79
Class C Actual 2.10% $ 1,000.00 $ 1,054.60 $ 10.76
Class C Hypothetical 2.10% $ 1,000.00 $ 1,014.46 $ 10.55
Class Y Actual 1.12% $ 1,000.00 $ 1,058.00 $ 5.75
Class Y Hypothetical 1.12% $ 1,000.00 $ 1,019.35 $ 5.64
LARGE CAP RELATIVE VALUE FUND
Class A Actual 1.19% $ 1,000.00 $ 1,149.50 $ 6.38
Class A Hypothetical 1.19% $ 1,000.00 $ 1,019.00 $ 5.99
Class C Actual 1.94% $ 1,000.00 $ 1,145.00 $ 10.37
Class C Hypothetical 1.94% $ 1,000.00 $ 1,015.26 $ 9.75
Class Y Actual 0.94% $ 1,000.00 $ 1,150.90 $ 5.04
Class Y Hypothetical 0.94% $ 1,000.00 $ 1,020.24 $ 4.73
Institutional Class Actual 0.79% $ 1,000.00 $ 1,151.70 $ 4.24
Institutional Class Hypothetical 0.79% $ 1,000.00 $ 1,020.99 $ 3.98
MARKET NEUTRAL EQUITY FUND
Class A Actual 1.74% $ 1,000.00 $ 966.00 $ 8.53
Class A Hypothetical 1.74% $ 1,000.00 $ 1,016.26 $ 8.75
Class C Actual 2.49% $ 1,000.00 $ 963.00 $ 12.19
Class C Hypothetical 2.49% $ 1,000.00 $ 1,012.52 $ 12.49
Class Y Actual 1.49% $ 1,000.00 $ 967.00 $ 7.31
Class Y Hypothetical 1.49% $ 1,000.00 $ 1,017.50 $ 7.49
MID CAP FUND
Class A Actual 1.17% $ 1,000.00 $ 1,147.90 $ 6.27
Class A Hypothetical 1.17% $ 1,000.00 $ 1,019.10 $ 5.89
Class C Actual 1.92% $ 1,000.00 $ 1,138.50 $ 10.24
Class C Hypothetical 1.92% $ 1,000.00 $ 1,015.36 $ 9.65
Class Z Actual 1.17% $ 1,000.00 $ 1,142.80 $ 6.25
Class Z Hypothetical 1.17% $ 1,000.00 $ 1,019.10 $ 5.89
Class Y Actual 0.92% $ 1,000.00 $ 1,144.80 $ 4.92
Class Y Hypothetical 0.92% $ 1,000.00 $ 1,020.34 $ 4.63
147
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Other Items (Continued)
- --------------------------------------------------------------------------------
SCHEDULE OF SHAREHOLDER EXPENSES (CONTINUED)
EXPENSES
NET EXPENSE BEGINNING ENDING PAID DURING
RATIO ACCOUNT ACCOUNT THE SIX MONTHS
ANNUALIZED VALUE VALUE ENDED
MARCH 31, OCTOBER 1, MARCH 31, MARCH 31,
2010 2009 2010 2010*
- ---------------------------------------------------------------------------------------------------------------
MID CAP VALUE FUND
Class A Actual 1.29% $ 1,000.00 $ 1,153.90 $ 6.93
Class A Hypothetical 1.29% $ 1,000.00 $ 1,018.50 $ 6.49
Class C Actual 2.03% $ 1,000.00 $ 1,150.10 $ 10.88
Class C Hypothetical 2.03% $ 1,000.00 $ 1,014.81 $ 10.20
Class Y Actual 1.04% $ 1,000.00 $ 1,155.60 $ 5.59
Class Y Hypothetical 1.04% $ 1,000.00 $ 1,019.75 $ 5.24
Institutional Class Actual 0.89% $ 1,000.00 $ 1,156.10 $ 4.78
Institutional Class Hypothetical 0.89% $ 1,000.00 $ 1,020.49 $ 4.48
PREMIUM YIELD EQUITY FUND
Class A Actual 1.20% $ 1,000.00 $ 1,107.50 $ 6.31
Class A Hypothetical 1.20% $ 1,000.00 $ 1,018.95 $ 6.04
Class C Actual 1.95% $ 1,000.00 $ 1,103.10 $ 10.22
Class C Hypothetical 1.95% $ 1,000.00 $ 1,015.21 $ 9.80
Class Y Actual 0.95% $ 1,000.00 $ 1,109.10 $ 5.00
Class Y Hypothetical 0.95% $ 1,000.00 $ 1,020.19 $ 4.78
SANDS CAPITAL SELECT GROWTH FUND
Class Y Actual 1.20% $ 1,000.00 $ 1,139.00 $ 6.40
Class Y Hypothetical 1.20% $ 1,000.00 $ 1,018.95 $ 6.04
Class Z Actual 1.45% $ 1,000.00 $ 1,139.50 $ 7.73
Class Z Hypothetical 1.45% $ 1,000.00 $ 1,017.70 $ 7.29
SHORT DURATION FIXED INCOME FUND
Class Y Actual 0.49% $ 1,000.00 $ 1,016.50 $ 2.46
Class Y Hypothetical 0.49% $ 1,000.00 $ 1,022.49 $ 2.47
Class Z Actual 0.74% $ 1,000.00 $ 1,016.30 $ 3.72
Class Z Hypothetical 0.74% $ 1,000.00 $ 1,021.24 $ 3.73
SMALL CAP CORE FUND
Class A Actual 1.34% $ 1,000.00 $ 1,145.00 $ 7.17
Class A Hypothetical 1.34% $ 1,000.00 $ 1,018.25 $ 6.74
Class C Actual 2.09% $ 1,000.00 $ 1,142.00 $ 11.16
Class C Hypothetical 2.09% $ 1,000.00 $ 1,014.51 $ 10.50
Class Y Actual 1.09% $ 1,000.00 $ 1,148.00 $ 5.84
Class Y Hypothetical 1.09% $ 1,000.00 $ 1,019.50 $ 5.49
Institutional Class Actual 0.94% $ 1,000.00 $ 1,148.40 $ 5.03
Institutional Class Hypothetical 0.94% $ 1,000.00 $ 1,020.24 $ 4.73
148
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Other Items (Continued)
- --------------------------------------------------------------------------------
SCHEDULE OF SHAREHOLDER EXPENSES (CONTINUED)
EXPENSES
NET EXPENSE BEGINNING ENDING PAID DURING
RATIO ACCOUNT ACCOUNT THE SIX MONTHS
ANNUALIZED VALUE VALUE ENDED
MARCH 31, OCTOBER 1, MARCH 31, MARCH 31,
2010 2009 2010 2010*
- ---------------------------------------------------------------------------------------------------------------
SMALL CAP VALUE OPPORTUNITIES FUND
Class Z Actual 1.50% $ 1,000.00 $ 1,113.10 $ 7.90
Class Z Hypothetical 1.50% $ 1,000.00 $ 1,017.45 $ 7.54
ULTRA SHORT DURATION FIXED INCOME FUND
Class Z Actual 0.69% $ 1,000.00 $ 1,016.60 $ 3.47
Class Z Hypothetical 0.69% $ 1,000.00 $ 1,021.49 $ 3.48
* Expenses are equal to the Fund's annualized expense ratio, multiplied by
the average account value over the period, multiplied by [number of days
in most recent fiscal half-year/365 [or366]] (to reflect the one-half year
period).
** The example is based on an investment of $ 1,000 invested at the beginning
of the period (December 31, 2009) and held for the entire period through
March 31, 2010.
149
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Other Items (Continued)
- --------------------------------------------------------------------------------
ANNUAL RENEWAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
ADVISORY AGREEMENT APPROVAL DISCLOSURE
At a meeting held on November 19, 2009, the Board of Trustees (the "Board" or
"Trustees") of the Touchstone Funds Group Trust (the "Trust"), and by a separate
vote, the Independent Trustees of the Trust, approved the continuance of the
Investment Advisory Agreement between the Trust and the Advisor with respect to
each Fund of the Trust and of the Sub-Advisory Agreement with respect to each
Fund between the Advisor and the respective Sub-Advisor, except for the
Sub-Advisory Agreements with respect to the Ultra Short Duration Fixed Income
Fund, the Short Duration Fixed Income Fund, and the Intermediate Fixed Income
Fund which were approved at meetings held on November 13, 2008, February 19,
2009, and April 21, 2009, respectively.
In determining whether to approve the Investment Advisory Agreement and the
Sub-Advisory Agreements, the Advisor furnished information necessary for a
majority of the Independent Trustees to make the determination that the
continuance and/or approval of the Investment Advisory Agreement and of the
respective Sub-Advisory Agreement was in the best interests of each of the Funds
and its respective shareholders. The information provided to the Board included:
(1) industry data comparing advisory fees and expense ratios of comparable
investment companies; (2) comparative performance information; (3) the Advisor's
and its affiliates' revenues and costs of providing services to the Funds; and
(4) information about the Advisor's and Sub-Advisors' personnel. Prior to
voting, the Independent Trustees reviewed the proposed continuance and/or
approval of the Investment Advisory Agreement and the Sub-Advisory Agreements
with management and with experienced independent legal counsel and received
materials from such counsel discussing the legal standards for their
consideration of the proposed continuation and/or approval of the Investment
Advisory Agreement and the Sub-Advisory Agreement with respect to each Fund. The
Independent Trustees also reviewed the proposed continuation and/or approval of
the Investment Advisory Agreement and the Sub-Advisory Agreement with respect to
each of the Funds in private sessions with independent legal counsel at which no
representatives of management were present.
In approving the Funds' Investment Advisory Agreement, the Board considered
various factors, among them: (1) the nature, extent and quality of services
provided to the Funds, including the personnel providing services; (2) the
Advisor's compensation and profitability; (3) a comparison of fees and
performance with other advisers; (4) economies of scale; and (5) the terms of
the Investment Advisory Agreement. The Board's analysis of these factors is set
forth below. The Independent Trustees were advised by independent legal counsel
throughout the process.
Nature, Extent and Quality of Advisor Services. The Board considered the level
and depth of knowledge of the Advisor, including the professional experience and
qualifications of senior personnel. The Board discussed the Advisor's
effectiveness in monitoring the performance of each Sub-Advisor, including those
that were affiliates of the Advisor, and the Advisor's timeliness in responding
to performance issues. In evaluating the quality of services provided by the
Advisor, the Board took into account its familiarity with the Advisor's senior
management through Board meetings, discussions and reports during the preceding
year. The Board also took into account the Advisor's compliance policies and
procedures. The quality of administrative and other services, including the
Advisor's role in coordinating the activities of the Funds' other service
providers, was also considered. The Board also considered the Advisor's
relationship with its affiliates and the resources available to them, as well as
any potential conflicts of interest. The Trustees concluded that they were
satisfied with the nature, extent and quality of services provided to each Fund
by the Advisor under the Investment Advisory Agreement.
150
- --------------------------------------------------------------------------------
Other Items (Continued)
- --------------------------------------------------------------------------------
Advisor's Compensation and Profitability. The Board took into consideration the
financial condition and profitability of the Advisor and its affiliates
(including the Sub-Advisor to certain of the Funds) and the direct and indirect
benefits derived by the Advisor and its affiliates from the Advisor's
relationship with the Funds. The information considered by the Board included
operating profit margin information for the Advisor's business as a whole. The
Board noted that the Advisor waived advisory fees for each Fund. The Board also
noted that the Advisor pays the Sub-Advisors' sub-advisory fees out of the
advisory fees the Advisor receives from the Funds. The Board reviewed the
profitability of the Advisor's relationship with the Funds both before and after
tax expenses and whether the Advisor has the financial wherewithal to continue
to provide a high level of services to the Funds, noting the ongoing commitment
of the Advisor's parent company with respect to providing support and resources
as needed. The Board also considered that the Funds' distributor, an affiliate
of the Advisor, receives Rule 12b-1 distribution fees from the Funds and
receives a portion of the sales charges on sales or redemptions of certain
classes of shares. The Board also noted that the Advisor derives benefits to its
reputation and other benefits from its association with the Funds. The Board
also considered that affiliates of the Advisor may benefit from certain indirect
tax benefits, including those relating to dividend received deductions.
The Board recognized that the Advisor should be entitled to earn a reasonable
level of profits in exchange for the level of services it provides to each Fund
and the entrepreneurial risk that it assumes as Advisor. Based upon their
review, the Trustees concluded that the Advisor's and its affiliates' level of
profitability, if any, from their relationship with each Fund was reasonable and
not excessive.
Expenses and Performance. The Board compared the respective advisory fees and
total expense ratios for each of the Funds with various comparative data,
including the median and average advisory fees and total expense ratios of each
Fund's respective peer group. The Board also considered, among other data, the
Funds' respective performance results during the six-, twelve-month thirty-six
month periods ended September 30, 2009, as applicable, and noted that the Board
reviews on a quarterly basis detailed information about each Fund's performance
results, portfolio composition and investment strategies. The Board also took
into account current market conditions and their effect on the Funds'
performance.
The Board also considered the effect of each Fund's growth and size on its
performance and expenses. The Board noted that the Advisor had waived advisory
fees for each Fund in order to reduce the Fund's respective operating expenses
to targeted levels. The Board noted that the sub-advisory fees under the
Sub-Advisory Agreement with respect to each Fund were paid by the Advisor out of
the advisory fees it receives from the Fund and the impact of such sub-advisory
fees on the profitability of the Advisor. In reviewing the respective expense
ratios and performance of each of the Funds, the Board also took into account
the nature, extent and quality of the services provided to the Funds by the
Advisor and its affiliates.
The Board also discussed with management certain factors as set forth in the
conditions to the Funds' exemptive order issued by the Securities and Exchange
Commission relating to investments by the non-money market Funds in the
Touchstone Institutional Money Market Fund. Based upon the nature and extent of
the services provided by the Advisor and the Sub-Advisors to each Fund and a
discussion by management with respect to the costs to the Advisor and
Sub-Advisors of the portion of the advisory fee and sub-advisory fee
attributable to the portion of the non-money market Funds' assets to be invested
in the Touchstone Institutional Money Market Fund, the Board concluded that the
advisory fee and the sub-advisory fee of each non-money market Fund were based
on services that were in addition to, rather than duplicative of, services
provided under the Investment Advisory and Sub-Advisory Agreements with respect
to the portion of such Funds' assets to be invested in the Touchstone
Institutional Money Market Fund.
151
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Other Items (Continued)
- --------------------------------------------------------------------------------
The Board considered, among other data, the specific factors and related
conclusions set forth below with respect to each Fund:
Touchstone Healthcare and Biotechnology Fund. The Fund's advisory fee and total
expense ratio (net of applicable expense waivers) were above the median of its
peer group. The Board took into account management's discussion of the Fund's
expenses and noted that the Advisor was currently waiving a portion of the
Fund's advisory fee. The Board took into account the impact that the relatively
small size of the Fund has upon expenses. The Fund's performance for the six-,
twelve- and thirty-six-month periods ended September 30, 2009 was in the 4th
quartile of the Fund's peer group. The Board noted management's explanation for
the Fund's underperformance. Based upon their review, the Trustees concluded
that the Fund's performance was being addressed and also found that the advisory
fee was reasonable in light of the high quality of services received by the Fund
and the other factors considered.
Touchstone Intermediate Fixed Income Fund. The Fund's advisory fee and total
expense ratio (net of applicable expense waivers) were below the median of its
peer group. The Board noted that the Advisor was currently waiving a portion of
the Fund's advisory fee. The Board took into account the impact that the
relatively small size of the Fund has upon expenses. The Board also noted that
the Advisor had implemented reductions to the Fund's advisory fee schedule
effective April 2009. The Fund's performance for the six-, twelve- and
thirty-six-month periods ended September 30, 2009 was in the 4th quartile of the
Fund's peer group. The Board took into account that the Sub-Advisor had assumed
management of the Fund on April 22, 2009 after the prior sub-advisor had been
replaced. The Board noted management's explanation for the Fund's
underperformance. Based upon their review, the Trustees concluded that the
Fund's performance was being addressed and also found that the advisory fee was
reasonable in light of the high quality of services received by the Fund and the
other factors considered.
Touchstone International Growth Fund. The Fund's advisory fee and total expense
ratio (net of applicable expense waivers) were at and below the median,
respectively, of its peer group. The Board noted that the Advisor was currently
waiving a portion of the Fund's advisory fee. The Board took into account the
impact that the relatively small size of the Fund has upon expenses. The Fund's
performance for the six- and thirty-six-month periods ended September 30, 2009
was in the 3rd quartile of the Fund's peer group, and in the 4th quartile of the
Fund's peer group for the twelve-month period ended September 30, 2009. The
Board noted management's explanation for the Fund's underperformance. Based upon
their review, the Trustees concluded that the Fund's performance was being
addressed and also found that the advisory fee was reasonable in light of the
high quality of services received by the Fund and the other factors considered.
Touchstone Mid Cap Fund. The Fund's advisory fee and total expense ratio (net of
applicable expense waivers) were below the median of its peer group. The Board
noted that the Advisor was currently waiving the Fund's entire advisory fee. The
Fund's performance for the six-month period ended September 30, 2009 was in the
2nd quartile of the Fund's peer group, and in the 4th quartile for the twelve-
and thirty-six month periods ended September 30, 2009. The Board noted
management's discussion regarding the Fund's performance. Based upon their
review, the Trustees concluded that the Fund's performance was being addressed
and also found that the advisory fee was reasonable in light of the high quality
of services received by the Fund and the other factors considered.
Touchstone Premium Yield Equity Fund. The Fund's advisory fee and total expense
ratio (net of applicable expense waivers) were below the median of its peer
group. The Board noted that the Advisor was currently waiving a portion of the
Fund's advisory fee. The Board took into account the impact that the relatively
small size of the Fund has upon expenses. The Board noted that the Fund had
commenced operations on December 3, 2007. The Fund's performance for the
six-month period ended September 30, 2009 was in the 3rd quartile of the Fund's
peer group, and in the 4th quartile for the twelve-month period ended September
30, 2009. The Board took into account that the Sub-Advisor had assumed
management of the Fund on May 23, 2008 after the prior sub-advisor had been
replaced. Based upon their review, the Trustees concluded that the Fund's
performance was being addressed and also found that the advisory fee was
reasonable in light of the high quality of services received by the Fund and the
other factors considered.
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Other Items (Continued)
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Touchstone Sands Capital Select Growth Fund. The Fund's advisory fee and total
expense ratio (net of applicable expense waivers) were above the median of its
peer group. The Board took into account management's discussion of the Fund's
expenses and noted that the Advisor was currently waiving a portion of the
Fund's advisory fee. The Fund's performance for the six-, twelve- and thirty-six
month periods ended September 30, 2009 was in the 1st quartile of the Fund's
peer group. Based upon their review, the Trustees concluded that the Fund's
performance was satisfactory and also found that the advisory fee was reasonable
in light of the high quality of services received by the Fund and the other
factors considered.
Touchstone Short Duration Fixed Income Fund. The Fund's advisory fee and total
expense ratio (net of applicable expense waivers) were below the median of its
peer group. The Board noted that the Advisor was currently waiving a portion of
the Fund's advisory fee. The Board took into account the impact that the
relatively small size of the Fund has upon expenses. The Fund's performance for
the six-month period ended September 30, 2009 was in the 1st quartile of the
Fund's peer group, in the 2nd quartile for the twelve-month period ended
September 30, 2009, and in the 3rd quartile for the thirty-six month period
ended September 30, 2009. The Board also took into account that the Sub-Advisor
had assumed management of the Fund in February 2009, after the prior sub-advisor
had been replaced. Based upon their review, the Trustees concluded that the
Fund's performance was satisfactory and also found that the advisory fee was
reasonable in light of the high quality of services received by the Fund and the
other factors considered.
Touchstone Small Cap Value Opportunities Fund. The Fund's advisory fee and total
expense ratio (net of applicable expense waivers) were below the median and
above the median, respectively, of its peer group. The Board took into account
management's discussion of the Fund's expenses and noted that the Advisor was
currently waiving a portion of the Fund's advisory fee. The Board also noted
that the Sub-Advisor had assumed responsibility for managing the Fund's entire
portfolio on June 16, 2008. The Fund's performance for the six-month period
ended September 30, 2009 was in the 3rd quartile of the Fund's peer group, and
in the 4th quartile of the Fund's peer group for the twelve- and thirty-six
month periods ended September 30, 2009. The Board noted management's discussion
regarding the Fund's performance. Based upon their review, the Trustees
concluded that the Fund's performance over time was being addressed and also
found that the advisory fee was reasonable in light of the high quality of
services received by the Fund and the other factors considered.
Touchstone Ultra Short Duration Fixed Income Fund. The Fund's advisory fee and
total expense ratio (net of applicable expense waivers) were below the median of
its peer group. The Board noted that the Advisor was currently waiving a portion
of the Fund's advisory fee. The Fund's performance for the six-month period
ended September 30, 2009 was in the 3rd quartile of the Fund's peer group, in
the 1st quartile of the Fund's peer group for the twelve-month period ended
September 30, 2009, and in the 2nd quartile of the Fund's peer group for the
thirty-six month period ended September 30, 2009. The Board noted that the
Sub-Advisor had assumed management of the Fund on October 1, 2008 after the
prior sub-advisor had been replaced. Based upon their review, the Trustees
concluded that the Fund's performance was satisfactory and also found that the
advisory fee was reasonable in light of the high quality of services received by
the Fund and the other factors considered.
Economies of Scale. The Board considered the effect of each Fund's current size
and potential growth on its performance and expenses. The Board took into
account management's discussion of the Fund's advisory fee structure. The Board
considered the effective advisory fees under the Investment Advisory Agreement
as a percentage of assets at different asset levels and possible economies of
scale that might be realized if the assets of each Fund increase. With the
exception of the Touchstone Premium Yield Equity Fund which has breakpoints in
its advisory fee schedule, the Board determined that adding breakpoints at
specified levels to the advisory fee schedule of each Fund was not appropriate
at that time. The Board noted that the Touchstone Premium Yield Equity Fund
currently was not realizing economies of scale in its advisory fee. The Board
also noted that if a Fund's assets increase over time, the Fund might realize
other economies of scale if assets increase proportionally more than certain
other expenses. The Board also considered the fact that, under the Investment
Advisory Agreement, the advisory fee payable to the Advisor by a Fund was
reduced by the total sub-advisory fee paid by the Advisor to the Fund's
Sub-Advisor.
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Other Items (Continued)
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Conclusion. In considering the renewal of the Funds' Investment Advisory
Agreement, the Board, including the Independent Trustees, did not identify any
single factor as controlling, and each Trustee may have attributed different
weights to the various factors. The Trustees evaluated all information available
to them on a Fund-by-Fund basis, and their determinations were made separately
with respect to each Fund. The Board reached the following conclusions regarding
the Funds' Investment Advisory Agreement with the Advisor, among others: (a) the
Advisor had demonstrated that it possessed the capability and resources to
perform the duties required of it under the Investment Advisory Agreement; (b)
the Advisor maintains an appropriate compliance program; (c) the performance of
each Fund is satisfactory in relation to the performance of funds with similar
investment objectives and to relevant indices or, as discussed above, is being
addressed; and (d) each Fund's advisory fee is reasonable in relation to those
of similar funds and to the services to be provided by the Advisor. Based on
their conclusions, the Trustees determined with respect to each Fund that
continuation of the Investment Advisory Agreement was in the best interests of
the Fund and its shareholders.
In approving the Funds' respective Sub-Advisory Agreements, the Board considered
various factors with respect to each Fund and the applicable Sub-Advisory
Agreement, among them: (1) the nature, extent and quality of services provided
to the Fund, including the personnel providing such services; (2) the
Sub-Advisor's compensation; (3) a comparison of the sub-advisory fee and
performance with other advisers; and (4) the terms of the Sub-Advisory
Agreement. The Board's analysis of these factors is set forth below. The
Independent Trustees were advised by independent legal counsel throughout the
process.
Nature, Extent and Quality of Services Provided; Investment Personnel. The Board
considered information provided by the Advisor regarding the services provided
by each Sub-Advisor, including information presented periodically throughout the
previous year. The Board noted the affiliation of the Sub-Advisor to certain of
the Funds with the Advisor, noting any potential conflicts of interest. The
Board also noted that, on a periodic basis, the Board meets with portfolio
managers of the Sub-Advisors to discuss their respective performance and
investment processes and strategies. The Board considered each Sub-Advisor's
level of knowledge and investment style. The Board reviewed the experience and
credentials of the applicable investment personnel who are responsible for
managing the investment of portfolio securities with respect to the Funds. The
Board also noted each Sub-Advisor's brokerage practices. The Board also
considered each Sub-Advisor's regulatory and compliance history. The Board noted
that the Advisor's compliance monitoring processes includes quarterly reviews of
compliance reports and annual compliance visits to the Sub-Advisors and that
compliance issues, if any, are reported to the Board.
Sub-Advisor's Compensation. The Board also took into consideration the financial
condition of each Sub-Advisor and any indirect benefits derived by each
Sub-Advisor and its affiliates from the Sub-Advisor's relationship with the
Funds. In considering the profitability to each Sub-Advisor of its relationship
with the Funds, the Board noted the undertakings of the Advisor to maintain
expense limitations for the Funds and also noted that the sub-advisory fees
under the Sub-Advisory Agreements were paid by the Advisor out of the advisory
fees that it receives under the Investment Advisory Agreement and in addition,
with respect to the unaffiliated Sub-Advisors, are negotiated at arm's-length.
As a consequence, the profitability to each Sub-Advisor of its relationship with
a Fund was not a substantial factor in the Board's deliberations. For similar
reasons, the Board did not consider the potential economies of scale in each
Sub-Advisor's management of the applicable Fund to be a substantial factor in
its consideration, although the Board noted that the sub-advisory fee schedule
for each of Touchstone International Growth Fund, Touchstone Premium Yield
Equity Fund and Touchstone Sands Capital Select Growth Fund contained
breakpoints that would reduce the sub-advisory fee rate on assets above
specified levels as the applicable Fund's assets increased.
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Other Items (Continued)
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Sub-Advisory Fees and Fund Performance. The Board considered that each Fund pays
an advisory fee to the Advisor and that the Advisor pays the sub-advisory fee to
the Sub-Advisor. The Board also compared the sub-advisory fees paid by the
Advisor to fees charged by the Sub-Advisor to manage comparable institutional
separate accounts. The Board considered the amount retained by the Advisor and
the sub-advisory fee paid to each Sub-Advisor with respect to the various
services provided by the Advisor and the Sub-Advisor. The Board also noted that
the Advisor negotiated the sub-advisory fee with each of the unaffiliated
Sub-Advisors at arm's-length. The Board compared the sub-advisory fee for each
Fund with various comparative data, if available, including the median and
average sub-advisory fees of each Fund's peer group, and found considered the
following information:
Touchstone Healthcare and Biotechnology Fund. The Fund's sub-advisory fee was at
the median of its peer group. Based upon their review, the Trustees concluded
that the Fund's sub-advisory fee was reasonable in light of the high quality of
services received by the Fund and the other factors considered.
Touchstone Intermediate Fixed Income Fund. The Fund's sub-advisory fee was below
the median of its peer group. Based upon their review, the Trustees concluded
that the Fund's sub-advisory fee was reasonable in light of the high quality of
services received by the Fund and the other factors considered.
Touchstone International Growth Fund. The Fund's sub-advisory fee was below the
median of its peer group. Based upon their review, the Trustees concluded that
the Fund's sub-advisory fee was reasonable in light of the high quality of
services received by the Fund and the other factors considered.
Touchstone Mid Cap Fund. The Fund's sub-advisory fee was above the median of its
peer group. Based upon their review, the Trustees concluded that the Fund's
sub-advisory fee was reasonable in light of the high quality of services
received by the Fund and the other factors considered.
Touchstone Premium Yield Equity Fund. The Fund's sub-advisory fee was above the
median of its peer group. Based upon their review, the Trustees concluded that
the Fund's sub-advisory fee was reasonable in light of the high quality of
services received by the Fund and the other factors considered.
Touchstone Sands Capital Select Growth Fund. The Fund's sub-advisory fee was
above the median of its peer group. Based upon their review, the Trustees
concluded that the Fund's sub-advisory fee was reasonable in light of the high
quality of services received by the Fund and the other factors considered.
Touchstone Short Duration Fixed Income Fund. The Fund's sub-advisory fee was at
the median of its peer group. Based upon their review, the Trustees concluded
that the Fund's sub-advisory fee was reasonable in light of the high quality of
services received by the Fund and the other factors considered.
Touchstone Small Cap Value Opportunities Fund. The Fund's sub-advisory fee was
above the median of its peer group. Based upon their review, the Trustees
concluded that the Fund's sub-advisory fees were reasonable in light of the high
quality of services received by the Fund and the other factors considered.
Touchstone Ultra Short Duration Fixed Income Fund. The Fund's sub-advisory fee
was below the median of its peer group. Based upon their review, the Trustees
concluded that the Fund's sub-advisory fee was reasonable in light of the high
quality of services received by the Fund and the other factors considered.
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Other Items (Continued)
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As noted above, the Board considered each Fund's performance during the six-,
twelve- and thirty-six month periods ended September 30, 2009, as applicable, as
compared to each Fund's peer group and noted that the Board reviews on a
quarterly basis detailed information about each Fund's performance results,
portfolio composition and investment strategies. The Board noted the Advisor's
expertise and resources in monitoring the performance, investment style and
risk-adjusted performance of each Sub-Advisor. The Board was mindful of the
Advisor's focus on each Sub-Advisor's performance and the Advisor's ways of
addressing underperformance.
Conclusion. In considering the renewal of the Sub-Advisory Agreement with
respect to each Fund, the Board, including the Independent Trustees, did not
identify any single factor as controlling, and each Trustee may have attributed
different weights to the various factors. The Board reached the following
conclusions regarding each Sub-Advisory Agreement, among others: (a) the
Sub-Advisor was qualified to manage each Fund's assets in accordance with the
Fund's investment objectives and policies; (b) the Sub-Advisor maintains an
appropriate compliance program; (c) the performance of each Fund is satisfactory
relative to the performance of funds with similar investment objectives and to
relevant indices or, as discussed above, is being addressed; (d) each Fund's
advisory fees are reasonable relative to those of similar funds and to the
services to be provided by the Advisor and the Sub-Advisor; and (e) the
Sub-Advisor's investment strategies are appropriate for pursuing the investment
objectives of each Fund. Based on its conclusions, the Board determined that
approval of the Sub-Advisory Agreement with respect to each Fund was in the best
interests of the Fund and its shareholders.
BASIS FOR BOARD'S APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS
At meetings held on May 20-21, 2009, and August 19-20, 2009, the Board of
Trustees (the "Board" or "Trustees") of the Touchstone Funds Group Trust (the
"Trust"), and by a separate vote, the Independent Trustees of the Trust,
approved amendments to the Investment Advisory Agreement between the Trust and
the Advisor adding the Touchstone Emerging Markets Equity Fund, the Touchstone
Capital Appreciation Fund, the Touchstone Mid Cap Value Fund, the Touchstone
Large Cap Relative Value Fund, the Touchstone International Fixed Income Fund,
the Touchstone Global Equity Fund, the Touchstone Core Plus Fixed Income Fund,
the Touchstone Global Real Estate Fund, the Touchstone Market Neutral Equity
Fund, the Touchstone Small Cap Core Fund, and the Touchstone Focused Equity Fund
(collectively, the "New Funds") and also initially approved the Sub-Advisory
Agreements between the Advisors and the respective Sub-Advisors.
In determining whether to approve the amendment to the Investment Advisory
Agreement and approve the Sub-Advisory Agreements, the Advisor furnished
information necessary for a majority of the Independent Trustees to make the
determination that the amendment to the Investment Advisory Agreement and the
approval of the Sub-Advisory Agreements was in the best interests of each of the
New Funds and its respective shareholders. The information provided to the Board
included: (1) a comparison of each New Fund's proposed advisory fee and other
fees and anticipated expense ratios with those of comparable funds; (2)
performance information of a comparable investment product; (3) the Advisor's
and its affiliates' estimated revenues and costs of providing services to the
New Funds; and (4) information about the Advisor's and Sub-Advisors' personnel.
Prior to voting, the Independent Trustees reviewed the proposed amendment to the
Investment Advisory Agreement and approval of the Sub-Advisory Agreements with
management and with experienced independent legal counsel and received materials
from such counsel discussing the legal standards for their consideration of the
Investment Advisory Agreement and of the Sub-Advisory Agreements with respect to
each New Fund. The Independent Trustees also reviewed the proposed amendment to
the Investment Advisory Agreement and approval of the Sub-Advisory Agreements
with respect to each of the New Funds in private sessions with independent legal
counsel at which no representatives of management were present.
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Other Items (Continued)
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In approving the amendment to the Investment Advisory Agreement, the Board
considered various factors, among them: (1) the nature, extent and quality of
services to be provided to the New Funds, including the personnel that will
provide such services; (2) the Advisor's anticipated compensation and
profitability; (3) a comparison of fees of comparable funds; (4) anticipated
economies of scale; and (5) the terms of the Investment Advisory Agreement. The
Board's analysis of these factors is set forth below. The Independent Trustees
were advised by independent legal counsel throughout the process.
Nature, Extent and Quality of Advisor Services. The Board considered the level
and depth of knowledge of the Advisor, including the professional experience and
qualifications of senior personnel. The Board discussed the Advisor's
effectiveness in monitoring the performance of sub-advisors, including those
that were affiliates of the Advisor, and the Advisor's timeliness in responding
to performance issues. In evaluating the quality of services to be provided by
the Advisor, the Board took into account its familiarity with the Advisor's
senior management through Board meetings, discussions and reports during the
preceding year. The Board also took into account the Advisor's compliance
policies and procedures. The quality of administrative and other services of
comparable funds managed by the Advisor, including the Advisor's role in
coordinating the activities of those Funds' other service providers, was also
considered. The Board also considered the Advisor's relationship with its
affiliates and the resources available to them, as well as any potential
conflicts of interest. The Trustees concluded that they were satisfied with the
nature, extent and quality of services to be provided to each New Fund by the
Advisor under the Investment Advisory Agreement.
Advisor's Compensation and Profitability. The Board took into consideration the
financial condition and profitability of the Advisor and its affiliates
(including one of the Sub-Advisors) and the direct and indirect benefits to be
derived by the Advisor and its affiliates from the Advisor's relationship with
the New Funds. The information considered by the Board included operating profit
margin information for the Advisor's business as a whole. The Board noted that
the Advisor will waive advisory fees for certain New Funds. The Board also noted
that the Advisor will pay the Sub-Advisors' sub-advisory fees out of the
advisory fees the Advisor receives from the New Funds. The Board reviewed the
anticipated profitability of the Advisor's relationship with the New Funds and
whether the Advisor has the financial wherewithal to provide a high level of
services to the New Funds, noting the commitment of the Advisor's parent company
with respect to providing support and resources as needed. The Board also
considered that the New Funds' prospective distributor, an affiliate of the
Advisor, will receive Rule 12b-1 distribution fees from the New Funds and
receives a portion of the sales charges on sales or redemptions of certain
classes of shares. The Board also noted that the Advisor will derive benefits to
its reputation and other benefits from its association with the New Funds. The
Board also considered that affiliates of the Advisor may benefit from certain
indirect tax benefits, including those relating to dividend received deductions.
The Board recognized that the Advisor should be entitled to earn a reasonable
level of profits in exchange for the level of services it provides to each New
Fund and the entrepreneurial risk that it assumes as Advisor. Based upon their
review, the Trustees concluded that the Advisor's and its affiliates' level of
profitability, if any, to be derived from their relationship with each New Fund
would be reasonable and not excessive.
Expenses and Performance. The Board compared each New Fund's proposed advisory
fees and total expense ratios with those of comparable funds.
With respect to the Global Real Estate Fund, the Board noted that the Fund's
estimated total expenses after estimated reimbursements would be below the
median of the peer group.
With respect to the Capital Appreciation Fund, the Board noted that the Fund's
estimated total expenses after estimated reimbursements would be below the
median of the peer group.
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Other Items (Continued)
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With respect to the Mid Cap Value Fund, the Board noted that the Fund's
estimated total expenses after estimated reimbursements would be below the
median of the peer group.
With respect to the Emerging Markets Equity Fund, the Board noted that the
Fund's estimated total expenses after estimated reimbursements would be below
the median of the peer group.
With respect to the International Fixed Income Fund, the Board noted that the
Fund's estimated total expenses after estimated reimbursements would be below
the median of the peer group.
With respect to the Global Equity Fund, the Board noted that the Fund's
estimated total expenses after estimated reimbursements would be below the
median the of the peer group.
With respect to the Core Plus Fixed Fund, the Board noted that the Fund's
estimated total expenses after estimated reimbursements would be above the
median of the peer group.
With respect to the Market Neutral Equity Fund, the Board noted that the Fund's
estimated total expenses after estimated reimbursements would be above the
median of the peer group.
With respect to the Small Cap Core Fund, the Board noted that the Fund's
estimated total expenses after estimated reimbursements would be below the
median of the peer group.
With respect to the Large Cap Relative Value Fund, the Board noted that the
Fund's estimated total expenses after estimated reimbursements would be below
the median of the peer group.
With respect to the Focused Equity Fund, the Board noted that the Fund's
proposed advisory fee was below the median of the peer group.
The Board took into account that the Advisor had contractually agreed to limit
each New Fund's net operating expenses until January 31, 2011. The Board also
considered the performance results of comparable investment products managed by
the respective Sub-Advisors.
The Board also considered the effect of each New Fund's potential growth and
size on its performance and expenses. The Board further noted that the Advisor
anticipates waiving a portion of its advisory fees for certain New Funds in
order to reduce the Fund's respective operating expenses to targeted levels. The
Board noted that the sub-advisory fees under the Sub-Advisory Agreement with
respect to each New Fund will be paid by the Advisor out of the advisory fees it
receives from the New Fund and the impact of such sub-advisory fees on the
profitability of the Advisor. In reviewing the proposed expense ratios and
noting the performance of comparable investment products, the Board also took
into account the nature, extent and quality of the services to be provided to
the New Funds by the Advisor and its affiliates.
Economies of Scale. The Board considered the effect of each New Fund's current
size and potential growth on its performance and expenses. The Board took into
account management's discussion of each New Fund's advisory fee structure. The
Board considered the effective advisory fees under the Investment Advisory
Agreement as a percentage of assets at different asset levels and possible
economies of scale that might be realized if the assets of a New Fund increase.
The Board noted that the advisory fee schedule for each New Fund, except
Touchstone Global Real Estate Fund, the Touchstone Market Neutral Fund, and the
Touchstone Small Cap Core Fund, contains breakpoints that would reduce the
applicable advisory fee rate on assets above specified levels as the applicable
New Fund's assets increased. The Board determined that adding breakpoints at
specified levels to the advisory fee schedule of the Touchstone Global Real
Estate Fund, the Touchstone Market Neutral Fund, and the Touchstone Small Cap
Core Fund would not be appropriate at this time. The Board also noted that if a
New Fund's assets increase over time, the New Fund might realize other economies
of scale if assets increase proportionally more than certain other expenses. The
Board also considered the fact that, under the Investment Advisory Agreement,
the advisory fee payable to the Advisor by a New Fund will be reduced by the
total sub-advisory fee paid by the Advisor to the New Fund's Sub-Advisor.
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Other Items (Continued)
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Conclusion. In considering the amendment to the New Funds' Investment Advisory
Agreement, the Board, including the Independent Trustees, did not identify any
single factor as controlling, and each Trustee may have attributed different
weights to the various factors. The Trustees evaluated all information available
to them on a New Fund-by-New Fund basis, and their determinations were made
separately with respect to each New Fund. The Board reached the following
conclusions regarding the New Funds' Investment Advisory Agreement with the
Advisor, among others: (a) the Advisor had demonstrated that it possesses the
capability and resources to perform the duties required of it under the
Investment Advisory Agreement; (b) the Advisor maintains an appropriate
compliance program; (c) each New Fund's proposed advisory fee is reasonable in
relation to those of similar funds and to the services to be provided by the
Advisor. Based on their conclusions, the Trustees determined with respect to
each New Fund that approval of the amendments to the Investment Advisory
Agreement was in the best interests of the New Fund and its shareholders.
In approving the New Funds' respective Sub-Advisory Agreements, the Board
considered various factors with respect to each New Fund and the applicable
Sub-Advisory Agreement, among them: (1) the nature, extent and quality of
services to be provided to the New Fund, including the personnel providing such
services; (2) the Sub-Advisor's compensation; (3) a comparison of the proposed
sub-advisory fee and performance of a comparable investment product managed by
the Sub-Advisor against recognized indices; and (4) the terms of the
Sub-Advisory Agreement. The Board's analysis of these factors is set forth
below. The Independent Trustees were advised by independent legal counsel
throughout the process.
Nature, Extent and Quality of Services Provided; Investment Personnel. The Board
considered information provided by the Advisor regarding the services to be
provided by each Sub-Advisor. The Board noted the affiliation of the Fort
Washington Investment Advisors, Inc. ("FWIA") with the Advisor, noting any
potential conflicts of interest. The Board considered each Sub-Advisor's level
of knowledge and investment style. The Board reviewed the experience and
credentials of the applicable investment personnel who will be responsible for
managing the investment of portfolio securities with respect to the New Funds.
The Board also noted each Sub-Advisor's brokerage practices. The Board also
noted its familiarity with FWIA, owing to FWIA's management of other Touchstone
funds. The Board also considered each Sub-Advisor's regulatory and compliance
history. The Board noted that the Advisor's compliance monitoring processes
includes quarterly reviews of compliance reports and annual compliance visits to
the Sub-Advisors and that compliance issues, if any, are reported to the Board.
Sub-Advisor's Compensation. The Board also took into consideration the financial
condition of each Sub-Advisor and any indirect benefits to be derived by each
Sub-Advisor and its affiliates from the Sub-Advisor's relationship with the New
Funds. In considering the anticipated profitability to each Sub-Advisor of its
relationship with the New Funds, the Board noted the undertakings of the Advisor
to maintain expense limitations for the New Funds and also noted that the
sub-advisory fees under the Sub-Advisory Agreements will be paid by the Advisor
out of the advisory fees that it will receive under the Investment Advisory
Agreement and in addition, with respect to the unaffiliated Sub-Advisors, are
negotiated at arm's-length. As a consequence, the anticipated profitability to
each Sub-Advisor of its relationship with a New Fund was not a substantial
factor in the Board's deliberations. For similar reasons, the Board did not
consider the potential economies of scale in each Sub-Advisor's management of
the applicable New Fund to be a substantial factor in its consideration,
although the Board noted that the sub-advisory fee schedule for each New Fund,
except the Touchstone Global Real Estate Fund and Touchstone Small Cap Core Fund
contains breakpoints that would reduce the sub-advisory fee rate on assets above
specified levels as the applicable New Fund's assets increased.
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Other Items (Continued)
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Sub-Advisory Fees and Fund Performance. The Board considered that each New Fund
will pay an advisory fee to the Advisor and that the Advisor will pay the
sub-advisory fee to the Sub-Advisor. The Board also compared the sub-advisory
fees paid by the Advisor to fees charged by the Sub-Advisor to manage comparable
institutional separate accounts. The Board considered the amount to be retained
by the Advisor and the sub-advisory fee to be paid to each Sub-Advisor with
respect to the various services provided by the Advisor and the Sub-Advisor. The
Board also noted that the Advisor negotiated the sub-advisory fee with each of
the unaffiliated Sub-Advisors at arm's-length. The Board compared the proposed
sub-advisory fee for each New Fund with various comparative data, including the
median and average sub-advisory fees of each New Fund's peer group, and found
that each New Fund's sub-advisory fee was reasonable and appropriate under the
facts and circumstances.
The Board considered the Sub-Advisors' long-term performance record with
comparable investment products that have similar investment strategies that
would be utilized in managing the respective New Funds. The Board noted that the
comparable performance of these products were satisfactory. The Board noted the
Advisor's expertise and resources in monitoring the performance, investment
style and risk-adjusted performance of each Sub-Advisor. The Board was mindful
of the Advisor's focus on each Sub-Advisor's performance and the Advisor's ways
of addressing underperformance.
Conclusion. In considering the approval of the Sub-Advisory Agreement with
respect to each New Fund, the Board, including the Independent Trustees, did not
identify any single factor as controlling, and each Trustee may have attributed
different weights to the various factors. The Board reached the following
conclusions regarding each Sub-Advisory Agreement, among others: (a) the
Sub-Advisors are qualified to manage each New Fund's assets in accordance with
the New Fund's investment objectives and policies; (b) the Sub-Advisor maintains
an appropriate compliance program; (c) each New Fund's proposed advisory fees
are reasonable in relation to those of similar funds and to the services to be
provided by the Advisor and the Sub-Advisors; and (d) each Sub-Advisor's
investment strategies are appropriate for pursuing the investment objectives of
each New Fund. Based on its conclusions, the Board determined that approval of
the Sub-Advisory Agreement with respect to each New Fund was in the best
interests of the New Fund and its shareholders.
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162
PRIVACY PROTECTION POLICY
WE RESPECT YOUR PRIVACY
Thank you for your decision to invest with us. Touchstone and its affiliates
have always placed a high value on the trust and confidence our clients place in
us. We believe that confidence must be earned and validated through time. In
today's world, when technology allows the sharing of information at light
speeds, trust must be reinforced by our sincere pledge to take the steps
necessary to ensure that the information you share with us is treated with
respect and confidentiality.
OUR PLEDGE TO OUR CLIENTS
o We collect only the information we need to service your account and
administer our business.
o We are committed to keeping your information confidential and we place
strict limits and controls on the use and sharing of your information.
o We make every effort to ensure the accuracy of your information.
WE COLLECT THE FOLLOWING NONPUBLIC PERSONAL INFORMATION ABOUT YOU:
o Information we receive from you on or in applications or other forms,
correspondence, or conversations, including, but not limited to, your
name, address, phone number, social security number, assets, income and
date of birth; and
o Information about your transactions with us, our affiliates, or others,
including, but not limited to, your account number and balance, payment
history, parties to transactions, cost basis information, and other
financial information.
CATEGORIES OF INFORMATION WE DISCLOSE AND PARTIES TO WHOM WE DISCLOSE
We do not disclose any nonpublic personal information about our current or
former clients to nonaffiliated third parties, except as required or permitted
by law.
WE PLACE STRICT LIMITS AND CONTROLS ON THE USE AND SHARING OF YOUR INFORMATION
o We restrict access to nonpublic personal information about you to
authorized employees who need the information to administer your business.
o We maintain physical, electronic and procedural safeguards that comply
with federal standards to protect this information.
o We do not disclose any nonpublic personal information about our current or
former clients to anyone, except as required or permitted by law or as
described in this document.
o We will not sell your personal information to anyone.
WE MAY PROVIDE INFORMATION TO SERVICE YOUR ACCOUNT
Sometimes it is necessary to provide information about you to various companies
such as transfer agents, custodians, broker-dealers and marketing service firms
to facilitate the servicing of your account. These organizations have a
legitimate business need to see some of your personal information in order for
us to provide service to you. We may disclose to these various companies the
information that we collect as described above. We require that these companies,
including our own subsidiaries and affiliates, strictly maintain the
confidentiality of this information and abide by all applicable laws. Companies
within our corporate family that may receive this information are financial
service providers and insurance companies. We do not permit these associated
companies to sell the information for their own purposes, and we never sell our
customer information.
This policy is applicable to the following affiliated companies: Touchstone
Funds Group Trust, Touchstone Investment Trust, Touchstone Strategic Trust,
Touchstone Tax-Free Trust, Touchstone Variable Series Trust, Touchstone
Institutional Funds Trust, Touchstone Securities, Inc.,* Capital Analysts
Incorporated and W&S Brokerage Services, Inc.
* Touchstone Securities, Inc. serves as the underwriter to the Touchstone Funds.
A Member of Western & Southern Financial Group(R)
THE PRIVACY PROTECTION POLICY IS NOT PART OF THE SEMI-ANNUAL REPORT.
163
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303 Broadway, Suite 1100
Cincinnati, OH 45202-4203
- --------------------------------------------------------------------------------
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TOUCHSTONE INVESTMENTS
DISTRIBUTOR
Touchstone Securities, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203 800.638.8194
www.touchstoneinvestments.com
INVESTMENT ADVISOR
Touchstone Advisors, Inc.*
303 Broadway
Cincinnati, Ohio 45202-4203
TRANSFER AGENT
JPMorgan Chase Bank, N.A.
P.O. Box 5354
Cincinnati, Ohio 45201-5354
SHAREHOLDER SERVICE
800.543.0407
* A Member of Western & Southern Financial Group
TSF-56-TFGT-SAR-1003
Item 2. Code of Ethics.
Not required in semi-annual report filing.
Item 3. Audit Committee Financial Expert.
Not required in semi-annual report filing.
Item 4. Principal Accountant Fees and Services.
Not required in semi-annual report filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable
Item 6. Schedule of Investments.
The Schedule of Investments in securities of unaffiliated issuers is included in
the Semiannual Report.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
No material changes have been made to the procedures by which shareholders may
recommend nominees to its Board of Trustees.
Item 11. Controls and Procedures.
(a) Based on an evaluation of the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the 1940 Act) the registrant's
principal executive officer and principal financial officer have concluded that
the registrant's disclosure controls and procedures are effective as of a date
within 90 days of the filing date of this report.
(b) There were no changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during
the registrant's second fiscal half-year that have materially affected, or are
reasonably likely to materially affect, the registrant's internal control over
financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable in semiannual filing.
(a)(2) Certifications required by Item 12(a)(2) of Form N-CSR are filed
herewith.
(b) Certification required by Item 11(b) of Form N-CSR is filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Touchstone Funds Group Trust
By (Signature and Title)
/s/ Jill T. McGruder
- ------------------------------------
Jill T. McGruder
President
Date: June 2, 2010
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)
/s/ Jill T. McGruder
- -------------------------------------
Jill T. McGruder
President
Date: June 2, 2010
/s/ Terrie A. Wiedenheft
- -------------------------------------
Terrie A. Wiedenheft
Controller & Treasurer
Date: June 2, 2010