As filed with the Securities and Exchange Commission on June 29, 2009
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 No. 811-08261
MEMBERS Mutual Funds
5910 Mineral Point Road
Madison, WI 53705
(608) 238-5851
(Registrant's Exact Name, Address and Telephone Number)
Kerry A. Jung, Esquire
CUNA Mutual Insurance Society
Lead Attorney
5910 Mineral Point Road
Madison, WI 53705
(Name and Address of Agent for Service)
--------------------------------------------
Date of fiscal year end: October 31
Date of reporting period: April 30, 2009
ITEM 1. REPORTS TO STOCKHOLDERS
A copy of the report transmitted to shareholders pursuant to Rule 30e-1 under
the Investment Company Act of 1940 (the "1940 Act") appears beginning on the
following page.
[LOGO OF MEMBERS
MUTUAL FUNDS]
MEMBERS(TM)
MUTUAL FUNDS
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MEMBERS(R) MUTUAL FUNDS
SEMIANNUAL REPORT
APRIL 30, 2009
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CONSERVATIVE ALLOCATION FUND
MODERATE ALLOCATION FUND
AGGRESSIVE ALLOCATION FUND
CASH RESERVES FUND
BOND FUND
HIGH INCOME FUND
DIVERSIFIED INCOME FUND
LARGE CAP VALUE FUND
LARGE CAP GROWTH FUND
MID CAP VALUE FUND
MID CAP GROWTH FUND
SMALL CAP VALUE FUND
SMALL CAP GROWTH FUND
INTERNATIONAL STOCK FUND
This material is for reporting purposes only and shall
not be used in connection with a solicitation, offer or
any proposed sale of securities unless preceded or
accompanied by a prospectus.
================================================================================
LETTER TO SHAREHOLDERS
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[PHOTO OF DAVID P. MARKS]
DAVID P. MARKS
Dear Fellow Shareholder:
Amidst a great deal of uncertainty, financial markets experienced a dramatic
swing in sentiment during the past six months. Beginning with the last few
months of 2008 and President Obama's inauguration, stock markets continued their
decline through March 9, 2009 while bonds and in particular U.S. Treasury
securities, enjoyed substantial appreciation as investors showed their strong
preference for safety over risk. From March 10th and throughout most of April
the stock markets around the globe made impressive rallies including all of our
funds.(1) Our bond funds also posted positive returns during these months.(1)
What changed? Maybe it was the huge government stimulus or the renewed
confidence that the financial system as we knew it would survive. Also,
surprisingly it was a positive sentiment amongst investors that changed more so
than news regarding company earnings or economic trends (although in very broad
terms their rate of decline slowed). Despite the unprecedented nature of these
economic and market conditions, investors once again showed that their penchant
for equities is not gone entirely, although with all of us having experienced a
decline in the value of our own personal assets, it is likely this rally could
be somewhat over bought. Performance through April, 2009 for the MEMBERS Mutual
Funds was generally in line with respective benchmarks however, some of our
funds are quite handily outperforming their benchmarks and peers.
While sentiment and market trends did change from negative to positive over the
past few months, and are likely to continue to vacillate for some time, the many
investment professionals managing your assets are working diligently to identify
prevailing risks and prudently choose stocks and bonds that present sound
investment opportunities. Our focus on delivering performance that generates
long-term value is unwavering. The reports that follow this letter provide
insight on each fund's performance and portfolio position.
Importantly, we recently announced a joint venture with Madison Investment
Advisors, Inc. In connection with that joint venture, Madison Asset Management,
LLC will become the funds' new investment advisor in July 2009. You may have
received a proxy statement that included more information about the transaction.
I am pleased to introduce Kay Frank as the new President of the MEMBERS Mutual
Funds. We encourage you to visit Madison Investments Advisors' website,
www.madisonadv.com, for more information about that firm and the funds' website,
www.membersfunds.com, for news and updates related to your funds.
As always, your long-term success as a shareholder in MEMBERS Mutual Funds is
our top priority. We appreciate the confidence you have placed in us and we are
focusing on our role as stewards of your assets as our primary responsibility.
Please call me directly if you have any questions or concerns.
Sincerely,
/s/ David P. Marks
David P. Marks, CFA
President,
(1)All returns reference performance of Class A shares at net asset value.
Please read the Semi-Annual report for more information regarding Fund returns
and performance. Please see the Fund prospectus for more information.
Not part of the Semiannual Report.
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FUND RETURNS AND PEER GROUP RANK AS OF 4/30/2009
------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------------- ------------------- ------------------ -------------------
% RANK/# % RANK/# % RANK/# % RANK/#
OF FUNDS IN OF FUNDS IN OF FUNDS IN OF FUNDS IN
FUND AND PEER GROUP RETURN CATEGORY RETURN CATEGORY RETURN CATEGORY RETURN CATEGORY
- ------------------- ------ -------- ------ -------- ------ -------- ------ --------
CONSERVATIVE ALLOCATION -17.76% 56/675 N/A N/A N/A N/A N/A N/A
Conservative Allocation* -16.62% N/A N/A N/A
MODERATE ALLOCATION -28.54% 76/1255 N/A N/A N/A N/A N/A N/A
Moderate Allocation* -25.18% N/A N/A N/A
AGGRESSIVE ALLOCATION -38.21% 83/2142 N/A N/A N/A N/A N/A N/A
Large Blend* -35.09% N/A N/A N/A
BOND 4.00% 15/1178 4.94% 24/1119 3.96% 24/1059 4.57% 44/828
Intermediate-Term Bond* -3.24% 2.07% 2.23% 4.08%
HIGH INCOME -5.44% 3/563 1.14% 3/535 3.41% 4/486 3.48% 16/394
High Yield Bond* -16.52% -3.64% 0.48% 1.87%
DIVERSIFIED INCOME -15.96% 6/1255 -3.43% 12/1081 0.66% 25/962 1.20% 40/734
Moderate Allocation* -25.18% -6.43% -0.30% 1.14%
LARGE CAP VALUE -38.54% 74/1460 -12.82% 59/1351 -3.60% 70/1206 -2.88% 92/792
Large Value* -36.25% -12.20% -2.61% -0.20%
LARGE CAP GROWTH -28.43% 14/1827 -7.34% 13/1686 -1.68% 38/1547 -1.46% 29/1059
Large Growth* -33.54% -10.09% -2.21% -2.50%
MID CAP VALUE -34.06% 52/462 -11.86% 54/378 -1.68% 57/314 N/A N/A
Mid-Cap Value* -33.49% -11.61% -1.10% N/A
MID CAP GROWTH -34.98% 44/931 -11.73% 58/899 -2.24% 69/808 N/A N/A
Mid-Cap Growth* -35.46% -11.52% -1.06% N/A
SMALL CAP VALUE -26.54% 18/436 N/A N/A N/A N/A N/A N/A
Small Value* -30.87% N/A N/A N/A
SMALL CAP GROWTH -41.43% 96/817 N/A N/A N/A N/A N/A N/A
Small Growth* -32.54% N/A N/A N/A
INTERNATIONAL STOCK -38.39% 13/823 -10.82% 17/688 2.53% 16/598 1.13% 22/431
Foreign Large Blend* -43.25% -12.90% 0.46% 0.31%
* Source of category peer group returns and ranks: Morningstar Direct; The
Morningstar Average Peer Returns represents the average annual composite
performance of all mutual funds listed in each fund category by Morningstar. The
highest (or most favorable) percentile rank is 1 and the lowest (or least
favorable) percentile rank is 100. The funds' ranking data shown is for Class A
shares at net asset value. If the sales charges were included, performance would
be lower.
Performance data shown represents past performance. Past performance does not
guarantee future results; the investment return and principal value of an
investment will fluctuate; an investor's shares, when redeemed may be worth more
or less than their original cost; and current performance may be lower or higher
than the performance data quoted. For more current performance information,
please call 1-800-877-6089 or visit our website at www.membersfunds.com.
(C) 2009 Morningstar, Inc. All Rights Reserved. The information contained
herein: (1) is proprietary to Morningstar and/or its content providers; (2) may
not be copied or distributed; and (3) is not warranted to be accurate, complete
or timely. Neither Morningstar nor its content providers are responsible for any
damages or losses arising from any use of this information.
For more complete information about MEMBERS Mutual Funds, including charges and
expenses, obtain a prospectus from your representative, by calling
1-800-877-6089, or by visiting the Funds' website: WWW.MEMBERSFUNDS.COM. Read it
carefully before you invest or send money. Consider the investment objectives,
risks, and charges and expenses of the investment carefully before investing.
The prospectus contains this and other information about the investment company.
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TABLE OF CONTENTS
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PAGE
----
FUND PERFORMANCE REVIEWS
Conservative Allocation Fund ................................... 2
Moderate Allocation Fund ....................................... 3
Aggressive Allocation Fund ..................................... 4
Bond Fund ...................................................... 5
High Income Fund ............................................... 6
Diversified Income Fund ........................................ 7
Large Cap Value Fund ........................................... 8
Large Cap Growth Fund .......................................... 9
Mid Cap Value Fund ............................................. 10
Mid Cap Growth Fund ............................................ 11
Small Cap Value Fund ........................................... 12
Small Cap Growth Fund .......................................... 13
International Stock Fund ....................................... 14
PORTFOLIOS OF INVESTMENTS
Conservative Allocation Fund ................................... 15
Moderate Allocation Fund ....................................... 16
Aggressive Allocation Fund ..................................... 18
Cash Reserves Fund ............................................. 19
Bond Fund ...................................................... 21
High Income Fund ............................................... 26
Diversified Income Fund ........................................ 32
Large Cap Value Fund ........................................... 38
Large Cap Growth Fund .......................................... 41
Mid Cap Value Fund ............................................. 44
Mid Cap Growth Fund ............................................ 48
Small Cap Value Fund ........................................... 50
Small Cap Growth Fund .......................................... 52
International Stock Fund ....................................... 55
FINANCIAL STATEMENTS
Statements of Assets and Liabilities ........................... 60
Statements of Operations ....................................... 64
Statements of Changes in Net Assets ............................ 68
Financial Highlights ........................................... 76
NOTES TO FINANCIAL STATEMENTS ........................................... 97
OTHER INFORMATION ....................................................... 108
PROXY VOTING RESULTS .................................................... 113
TRUSTEES AND OFFICERS ................................................... 116
NONDEPOSIT INVESTMENT PRODUCTS ARE NOT FEDERALLY INSURED, INVOLVE INVESTMENT
RISK, MAY LOSE VALUE AND ARE NOT OBLIGATIONS OF OR GUARANTEED BY ANY FINANCIAL
INSTITUTION. For more complete information about MEMBERS Mutual Funds, including
charges and expenses, request a prospectus from your registered representative
or from MEMBERS Mutual Funds, P.O. Box 8390, Boston, MA 02266-8390. Consider the
investment objectives, risks, and charges and expenses of the investment
carefully before investing. The prospectus contains this and other information
about the investment company. For more current performance information, please
call 1-800-877-6089 or visit our website at www.membersfunds.com. Current
performance may be lower or higher than the performance data quoted within. Past
performance does not guarantee future results. Nothing in this report represents
a recommendation of a security by the investment adviser. Portfolio holdings may
have changed since the date of this report.
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1
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CONSERVATIVE ALLOCATION FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT SINCE INCEPTION(1,8)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares Merrill Lynch U.S. New Conservative Old Conservative
(includes maximum Corporate, Government Allocation Fund Allocation Fund
sales charge)(2) & Mortgage Index(5) Custom Index(6) Custom Index(7)
6/30/2006 $ 9,425 $10,000 $10,000 $10,000
4/30/2007 10,337 10,767 11,176 11,027
4/30/2008 10,473 11,539 11,527 11,381
4/30/2009 8,613 12,040 10,244 10,339
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(8)
% RETURN WITHOUT % RETURN AFTER
SALES CHARGE SALES CHARGE(11) EXPENSE RATIO(12)
Since Since
6/30/06 2/29/08
1 Year Inception(9) Inception(10) 1 Year Since Inception Gross Net
------------------------------------------------ ---------------------------- ----------------
Class A Shares(2) (17.76)% (3.13)% -- (22.48)% (5.13)%(9) 1.89% 1.45%
Class B Shares(3) (18.44) (3.83) -- (22.01) (4.97)(9) 2.64 2.20
Class C Shares(4) (18.35) -- (14.57)% (19.14) (14.57)(10) 2.64 2.20
Merrill Lynch U.S.
Corporate, Government &
Mortgage Index(5) 4.34 6.76 4.14 NA NA NA NA
New Conservative Allocation
Fund Custom Index(6) (11.13) 0.85 (8.52) NA NA NA NA
Old Conservative Allocation
Fund Custom Index(7) (9.16) 1.18 (6.92) NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B shares,
which is reduced after 12 months and eliminated after six years.
(4) Maximum contingent deferred sales charge (CDSC) is 1% for class C shares,
which is eliminated after one year.
(5) The Merrill Lynch U.S. Corporate, Government & Mortgage Index is a
broad-based measure of the total rate of return performance of the U.S.
investment-grade bond markets. The index is a capitalization-weighted
aggregation of outstanding U.S. treasury, agency and supranational mortgage
pass-through, and investment-grade corporate bonds meeting specified
selection criteria.
(6) In February 2009, the custom benchmark for the fund was changed from the
Old Conservative Allocation Fund Custom Index to the New Conservative
Allocation Fund Custom Index because the adviser believes the new custom
benchmark better reflects the fund's asset allocation targets. The New
Conservative Allocation Fund Custom Index consists of 65% Merrill Lynch
U.S. Corporate, Government and Mortgage Index, 30% Russell 3000(R) Index and
5% MSCI EAFE Index. A description of the Merrill Lynch Index is set forth
above. The Russell 3000(R) Index is set forth below. The MSCI EAFE (Europe,
Australasia & Far East) Index is a free float-adjusted market
capitalization index that is designed to measure developed market equity
performance, excluding the U.S. and Canada.
(7) The Old Conservative Allocation Fund Custom Index consists of 55% Merrill
Lynch U.S. Corporate, Government & Mortgage Index, 30% Russell 1000(R)
Index, and 15% 90-Day U.S. Treasury Bills. A description of the Merrill
Lynch U.S. Corporate, Government & Mortgage Index is set forth above. The
Russell 1000(R) Index is a large-cap market index which measures the
performance of the 1,000 largest companies in the Russell 3000(R) Index (the
Russell 3000(R) Index measures the performance of the 3,000 largest U.S.
companies based on total market capitalization).
(8) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional shares
of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect
fees or expenses.
(9) Class A and B shares commenced investment operations on June 30, 2006. The
since inception index returns (without sales charges) are also from June
30, 2006.
(10)Class C shares commenced investment operations on February 29, 2008. The
since inception index returns (without sales charges) are also from
February 29, 2008.
(11)Assumes maximum applicable sales charge.
(12)The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's actual
expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
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2
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MODERATE ALLOCATION FUND PERFORMANCE REVIEW
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CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT SINCE INCEPTION(1,9)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares New Moderate Old Moderate
(includes maximum Russell Allocation Fund Allocation Fund
sales charge)(2) S&P 5005(5) 1000(R) Index(6) Custom Index(7) Custom Index(8)
6/30/2006 $ 9,425 $10,000 $10,000 $10,000 $10,000
4/30/2007 10,744 11,824 11,830 11,543 11,452
4/30/2008 10,674 11,271 11,283 11,598 11,445
4/30/2009 7,627 7,291 7,301 9,061 8,967
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(9)
% RETURN WITHOUT % RETURN AFTER
SALES CHARGE SALES CHARGE(12) EXPENSE RATIO(13)
Since Since
6/30/06 2/29/08
1 Year Inception(10) Inception(11) 1 Year Since Inception Gross Net
----------------------------------------------- ---------------------------- -----------------
Class A Shares(2) (28.54)% (7.19)% -- (32.66)% (9.11)%(10) 1.69% 1.60%
Class B Shares(3) (29.13) (7.89) -- (32.28) (9.00)(10) 2.44 2.35
Class C Shares(4) (29.13) -- (23.63)% (29.83) (23.63)(11) 2.44 2.35
S&P 500 Index(5) (35.31) (10.53) (30.15) NA NA NA NA
Russell 1000(R)Index(6) (35.30) (10.49) (30.16) NA NA NA NA
New Moderate Allocation
Fund Custom Index(7) (21.88) (3.42) (17.27) NA NA NA NA
Old Moderate Allocation
Fund Custom Index(8) (21.65) (3.77) (17.05) NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B shares,
which is reduced after 12 months and eliminated after six years.
(4) Maximum contingent deferred sales charge (CDSC) is 1% for class C shares,
which is eliminated after one year.
(5) In February 2009, the broad-based securities market index for the fund was
changed from the Russell 1000(R) Index to the S&P 500 Index because the
adviser believes the index better reflects the fund's asset allocation
targets. The S&P 500 Index is a large-cap market index which measures the
performance of a representative sample of 500 leading companies in leading
industries in the U.S.
(6) The Russell 1000(R) Index is a large-cap market index which measures the
performance of the 1,000 largest companies in the Russell 3000(R) Index (the
Russell 3000(R) Index measures the performance of the 3,000 largest U.S.
companies based on total market capitalization).
(7) In February 2009, the custom benchmark for the fund was changed from the
Old Moderate Allocation Fund Custom Index to the New Moderate Allocation
Fund Custom Index because the adviser believes the new custom benchmark
better reflects the fund's asset allocation targets. The New Moderate
Allocation Fund Custom Index consists of 40% Merrill Lynch U.S. Corporate,
Government and Mortgage Index, 45% Russell 3000(R) Index and 15% MSCI EAFE
Index. A description of the Merrill Lynch Index, and MSCI EAFE Index is set
forth below. A description of the Russell 3000(R) Index is set forth above.
(8) The Old Moderate Allocation Fund Custom Index consists of 50% Russell
3000(R) Index, 30% Merrill Lynch U.S. Corporate, Government & Mortgage
Index, 10% MSCI EAFE Index and 10% 90-Day U.S. Treasury Bills. A description
of the Russell 3000(R) Index is set forth above. The Merrill Lynch U.S.
Corporate, Government & Mortgage Index is a broad-based measure of the total
rate of return performance of the U.S. investment-grade bond markets. The
index is a capitalization-weighted aggregation of outstanding U.S. treasury,
agency and supranational mortgage pass-through, and investment-grade
corporate bonds meeting specified selection criteria. The MSCI EAFE (Europe,
Australasia & Far East) Index is a free float-adjusted market capitalization
index that is designed to measure developed market equity performance,
excluding the U.S. and Canada.
(9) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional shares
of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect fees
or expenses.
(10)Class A and B shares commenced investment operations on June 30, 2006. The
since inception index returns (without sales charges) are also from June
30, 2006.
(11)Class C shares commenced investment operations on February 29, 2008. The
since inception index returns (without sales charges) are also from
February 29, 2008.
(12)Assumes maximum applicable sales charge.
(13)The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's actual
expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
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3
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AGGRESSIVE ALLOCATION FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT SINCE INCEPTION(1,9)
Class A Shares New Aggressive Old Aggressive
(includes maximum Russell Allocation Fund Allocation Fund
sales charge)(2) S&P 500(5) 3000(R) Index(6) Custom Index(7) Custom Index(8)
6/30/2006 $ 9,425 $10,000 $10,000 $10,000 $10,000
4/30/2007 11,146 11,824 11,802 11,975 12,166
4/30/2008 10,869 11,271 11,194 11,730 11,856
4/30/2009 6,716 7,291 7,282 7,957 7,504
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(9)
% RETURN WITHOUT % RETURN AFTER
SALES CHARGE SALES CHARGE(12) EXPENSE RATIO(13)
Since Since
6/30/06 2/29/08
1 Year Inception(10) Inception(11) 1 Year Since Inception Gross Net
------------------------------------------------ ---------------------------- ----------------
Class A Shares(2) (38.21)% (11.27)% -- (41.76)% (13.10)%(10) 2.29% 1.74%
Class B Shares(3) (38.63) (11.92) -- (41.40) (13.00)(10) 3.04 2.49
Class C Shares(4) (38.60) -- (31.84)% (39.21) (31.84)(11) 3.04 2.49
S&P 500 Index(5) (35.31) (10.53) (30.15) NA NA NA NA
Russell 3000(R)Index(6) (34.95) (10.57) (29.83) NA NA NA NA
New Aggressive Allocation
Fund Custom Index(7) (32.17) (7.74) (25.98) NA NA NA NA
Old Aggressive Allocation
Fund Custom Index(8) (36.71) (9.62) (29.92) NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B shares,
which is reduced after 12 months and eliminated after six years.
(4) Maximum contingent deferred sales charge (CDSC) is 1% for class C shares,
which is eliminated after one year.
(5) In February 2009, the broad-based securities market index for the fund was
changed from the Russell 3000(R) Index to the S&P 500 Index because the
adviser believes the index better reflects the fund's asset allocation
targets. The S&P 500 Index is a large-cap market index which measures the
performance of a representative sample of 500 leading companies in leading
industries in the U.S.
(6) The Russell 3000(R) Index measures the performance of the 3,000 largest U.S.
companies based on total market capitalization, which represents 98% of the
investable U.S. equity market.
(7) In February 2009, the custom benchmark for the fund was changed from the
Old Aggressive Allocation Fund Custom Index to the New Aggressive
Allocation Fund Custom Index because the adviser believes the new custom
benchmark better reflects the fund's asset allocation targets. The New
Aggressive Allocation Fund Custom Index consists of 15% Merrill Lynch U.S.
Corporate, Government and Mortgage Index, 55% Russell 3000(R) Index and 30%
MSCI EAFE Index. The Merrill Lynch U.S. Corporate, Government and Mortgage
Index is a broad-based measure of the total rate of return performance of
the U.S. investment-grade bond markets. The index is a
capitalization-weighted aggregation of outstanding U.S. treasury, agency
and supranational mortgage pass-through and investment-grade corporate
bonds meeting specified selection criteria. The Russell 3000(R) Index is set
forth above and the MSCI EAFE (Europe, Australasia & Far East) Index is set
forth below.
(8) The Old Aggressive Allocation Fund Custom Index consists of 55% Russell
1000(R) Index, 22% MSCI EAFE Index, 15% Russell 2000(R) Index, and 8% MSCI
Emerging Markets Index. The Russell 1000(R) Index is a large-cap market
index which measures the performance of the 1,000 largest companies in the
Russell 3000(R) Index (see definition above). The Russell 2000(R) Index is a
small-cap market index which measures the performance of the remaining 2,000
companies in the Russell 3000(R) Index. The MSCI EAFE (Europe, Australasia &
Far East) Index is a free float-adjusted market capitalization index that is
designed to measure developed market equity performance, excluding the U.S.
and Canada. The MSCI Emerging Markets Index is a free-float adjusted market
capitalization index that measures equity performance in global emerging
markets.
(9) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional shares
of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect fees
or expenses.
(10)Class A and B shares commenced investment operations on June 30, 2006. The
since inception index returns (without sales charges) are also from June
30, 2006.
(11)Class C shares commenced investment operations on February 29, 2008. The
since inception index returns (without sales charges) are also from
February 29, 2008.
(12)Assumes maximum applicable sales charge.
(13)The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's actual
expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
4
================================================================================
BOND FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT(1,6)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares Merrill Lynch U.S.
(includes maximum Corporate, Government &
sales charge)(2) Mortgage Index(4)
4/30/1999 $ 9,550 $10,000
4/30/2000 9,663 10,124
4/30/2001 10,563 11,361
4/30/2002 11,268 12,245
4/30/2003 12,275 13,559
4/30/2004 12,302 13,810
4/30/2005 12,891 14,551
4/30/2006 12,925 14,649
4/30/2007 13,666 15,735
4/30/2008 14,364 16,864
4/30/2009 14,938 17,595
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(7) EXPENSE RATIO(8)
Since
6/30/06
1 Year 3 Years 5 Years 10 Years Inception 1 Year 3 Years 5 Years 10 Years Gross Net
---------------------------------------------------- ------------------------------------- ----------------
Class A Shares(2) 4.00% 4.94% 3.96% 4.57% -- (0.73)% 3.33% 3.01% 4.09% 1.02% 0.90%
Class B Shares(3) 3.22 4.12 3.18 3.78 -- (1.28) 3.03 2.83 3.78 1.77 1.65
Class Y Shares(5) 4.26 -- -- -- 5.47% -- -- -- -- 0.76 0.65
Merrill Lynch U.S.
Corporate,
Government &
Mortgage Index(4) 4.34 6.29 4.96 5.81 6.76 NA NA NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 4.50% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B shares,
which is reduced after 12 months and eliminated after six years.
(4) The Merrill Lynch U.S. Corporate, Government & Mortgage Index, is a
broad-based measure of the total rate of return performance of the U.S.
investment-grade bond markets. The index is a capitalization-weighted
aggregation of outstanding U.S. treasury, agency and supranational mortgage
pass-through, and investment-grade corporate bonds meeting specified
selection criteria.
(5) Class Y Shares are only available for purchase by MEMBERS Funds and other
affiliated asset allocation funds, in managed account programs, and to
certain other investors as described in the current Prospectus.
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional shares
of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect fees
or expenses.
(7) Assumes maximum applicable sales charge.
(8) The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's actual
expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
5
================================================================================
HIGH INCOME FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT(1,7)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares (includes Merrill Lynch U.S. High
maximum sales charge)(2) Yield Master II Constrained Index(4)
04/30/1999 $ 9,550 $10,000
04/30/2000 9,473 9,713
04/30/2001 9,386 10,054
04/30/2002 9,444 10,410
04/30/2003 10,241 11,339
04/30/2004 11,379 13,011
04/30/2005 12,000 13,853
04/30/2006 13,007 15,077
04/30/2007 14,358 16,856
04/30/2008 14,231 16,733
04/30/2009 13,456 13,988
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(7) EXPENSE RATIO(8)
Since
6/30/06
1 Year 3 Years 5 Years 10 Years Inception 1 Year 3 Years 5 Years 10 Years Gross Net
------------------------------------------------- ------------------------------------- --------------
Class A Shares(2) (5.44)% 1.14% 3.41% 3.48% -- (9.70)% (0.42)% 2.46% 3.01% 1.14% 1.00%
Class B Shares(3) (6.22) 0.40 2.64 2.73 -- (10.14) (0.57) 2.34 2.73 1.90 1.75
Class Y Shares(5) (5.22) -- -- -- 1.79% -- -- -- -- 0.89 0.75
Merrill Lynch
U.S. High
Yield Master II
Constrained
Index(4) (14.00) (1.54) 2.03 3.41 (1.23) NA NA NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 4.50% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B shares,
which is reduced after 12 months and eliminated after six years.
(4) The Merrill Lynch U.S. High Yield Master II Constrained Index tracks the
performance of below investment grade U.S. dollar denominated corporate
bonds publicly issued in the U.S. domestic market, but limits any
individual issuer to a maximum weighting of 2%.
(5) Class Y Shares are only available for purchase by MEMBERS Funds and other
affiliated asset allocation funds, in managed account programs, and to
certain other investors as described in the current Prospectus.
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional shares
of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect fees
or expenses.
(7) Assumes maximum applicable sales charge.
(8) The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's actual
expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
6
================================================================================
DIVERSIFIED INCOME FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT(1,6)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares (includes Merrill Lynch U.S. Corporate,
maximum sales charge)(2) Government & Mortgage Index(4) Russell 1000(R) Index(5)
04/30/1999 $ 9,425 $10,000 $10,000
04/30/2000 10,158 10,124 11,245
04/30/2001 10,099 11,361 9,709
04/30/2002 9,628 12,245 8,546
04/30/2003 9,014 13,559 7,395
04/30/2004 10,269 13,810 9,163
04/30/2005 10,924 14,551 9,823
04/30/2006 11,784 14,649 11,464
04/30/2007 12,868 15,735 13,201
04/30/2008 12,626 16,864 12,592
04/30/2009 10,612 17,595 8,147
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(7) EXPENSE RATIO(8)
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years Gross Net
------------------------------------- -------------------------------------- ----------------
Class A Shares(2) (15.96)% (3.43)% 0.66% 1.20% (20.76)% (5.33)% (0.52)% 0.60% 1.29% 1.10%
Class B Shares(3) (16.58) (4.14) (0.09) 0.44 (20.19) (5.08) (0.41) 0.44 2.04 1.85
Russell 1000(R)
Index)(5) (35.30) (10.76) (2.32) (2.03) NA NA NA NA NA NA
Merrill Lynch
U.S. Corporate,
Government &
Mortgage Index(4) 4.34 6.29 4.96 5.81 NA NA NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B shares,
which is reduced after 12 months and eliminated after six years.
(4) The Merrill Lynch U.S. Corporate, Government & Mortgage Index is a
broad-based measure of the total rate of return performance of the U.S.
investment-grade bond markets. The index is a capitalization-weighted
aggregation of outstanding U.S. treasury, agency and supranational mortgage
pass-through, and investment-grade corporate bonds meeting specified
selection criteria.
(5) The Russell 1000(R) Index is a large-cap market index which measures the
performance of the 1,000 largest companies in the Russell 3000(R) Index
(the Russell 3000(R) Index measures the performance of the 3,000 largest
U.S. companies based on total market capitalization).
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional shares
of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's
past performance is not indicative of future performance. Current
performance may be lower or higher than the performance data cited. For
fund performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect fees
or expenses.
(7) Assumes maximum applicable sales charge.
(8) The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's
actual expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
7
================================================================================
LARGE CAP VALUE FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT(1,6)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares (includes
maximum sales charge)(2) Russell 1000(R) Value Index(4)
04/30/1999 $ 9,425 $10,000
04/30/2000 9,965 9,612
04/30/2001 9,072 10,230
04/30/2002 8,247 9,830
04/30/2003 6,777 8,551
04/30/2004 8,449 10,797
04/30/2005 9,227 12,300
04/30/2006 10,613 14,552
04/30/2007 12,429 17,193
04/30/2008 11,442 15,650
04/30/2009 7,033 9,514
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(7) EXPENSE RATIO(8)
Since
6/30/06
1 Year 3 Years 5 Years 10 Years Inception 1 Year 3 Years 5 Years 10 Years Gross Net
------------------------------------------------- ------------------------------------- --------------
Class A Shares(2) (38.54)% (12.82)% (3.60)% (2.88)% -- (42.05)% (14.53)% (4.75)% (3.46)% 1.16% 1.16%
Class B Shares(3) (38.98) (13.44) (4.31) (3.60) -- (41.69) (14.43) (4.68) (3.60) 1.91 1.91
Class Y Shares(5) (38.42) -- -- -- (12.65)% -- -- -- -- 0.91 0.91
Russell 1000(R)
Value Index(4) (39.21) (13.21) (2.50) (0.50) (13.35) NA NA NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B shares,
which is reduced after 12 months and eliminated after six years.
(4) The Russell 1000(R) Value Index is a large-cap market index which measures
the performance of those Russell 1000 companies with lower price-to-book
ratios and lower forecasted growth values.
(5) Class Y Shares are only available for purchase by MEMBERS Funds and other
affiliated asset allocation funds, in managed account programs, and to
certain other investors as described in the current Prospectus.
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional shares
of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's
past performance is not indicative of future performance. Current
performance may be lower or higher than the performance data cited. For
fund performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect fees
or expenses.
(7) Assumes maximum applicable sales charge.
(8) The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's
actual expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
8
================================================================================
LARGE CAP GROWTH FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT(1,6)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares (includes
maximum sales charge)(2) Russell 1000(R) Growth Index(4)
04/30/1999 $ 9,425 $10,000
04/30/2000 10,947 12,758
04/30/2001 11,039 8,643
04/30/2002 9,049 6,906
04/30/2003 7,261 5,915
04/30/2004 8,857 7,195
04/30/2005 9,363 7,224
04/30/2006 10,230 8,320
04/30/2007 11,197 9,340
04/30/2008 11,369 9,318
04/30/2009 8,137 6,376
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(7) EXPENSE RATIO(8)
Since
6/30/06
1 Year 3 Years 5 Years 10 Years Inception 1 Year 3 Years 5 Years 10 Years Gross Net
------------------------------------------------- ------------------------------------- --------------
Class A Shares(2) (28.43)% (7.34)% (1.68)% (1.46)% -- (32.55)% (9.15)% (2.84)% (2.04)% 1.34% 1.20%
Class B Shares(3) (29.01) (8.07) (2.44) (2.19) -- (32.21) (9.15) (2.83) (2.19) 2.10 1.95
Class Y Shares(5) (28.29) -- -- -- (6.19)% -- -- -- -- 1.09 0.95
Russell 1000(R)
Growth Index(4) (31.57) (8.49) (2.39) (4.40) (7.80) NA NA NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B shares,
which is reduced after 12 months and eliminated after six years.
(4) The Russell 1000(R) Growth Index is a large-cap market index which measures
the performance of those Russell 1000 companies with higher price-to-book
ratios and higher forecasted growth values.
(5) Class Y Shares are only available for purchase by MEMBERS Funds and other
affiliated asset allocation funds, in managed account programs, and to
certain other investors as described in the current Prospectus.
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional shares
of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's
past performance is not indicative of future performance. Current
performance may be lower or higher than the performance data cited. For
fund performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect fees
or expenses.
(7) Assumes maximum applicable sales charge.
(8) The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's
actual expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
9
================================================================================
MID CAP VALUE FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT SINCE INCEPTION(1,6)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares (includes Russell Midcap(R)
maximum sales charge)(2) Value Index(4)
2/28/2001 $ 9,425 $10,000
4/30/2001 9,793 10,258
4/30/2002 10,601 11,121
4/30/2003 8,630 9,621
4/30/2004 11,281 12,981
4/30/2005 12,212 15,616
4/30/2006 15,139 19,481
4/30/2007 17,472 23,310
4/30/2008 15,719 20,486
4/30/2009 10,365 12,955
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(9) EXPENSE RATIO(10)
Since Since
2/28/01 6/30/06 Since
1 Year 3 Years 5 Years Inception(7) Inception(8) 1 Year 3 Years 5 Years Inception(7) Gross Net
-------------------------------------------------------- ----------------------------------------- -----------
Class A
Shares(2) (34.06)% (11.86)% (1.68)% 1.17% -- (37.86)% (13.59)% (2.84)% 0.44% 1.81% 1.40%
Class B
Shares(3) (34.53) (12.57) (2.44) 0.38 -- (37.46) (13.31) (2.70) 0.38 2.56 2.15
Class Y
Shares(5) (33.92) -- -- -- (11.11)% -- -- -- -- 1.49 1.15
Russell
Midcap(R)
Value
Index(4) (36.76) (12.56) 0.06 3.22 (12.71) NA NA NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B
shares, which is reduced after 12 months and eliminated after six years.
(4) The Russell Midcap(R) Value Index is a mid-cap market index which measures
the performance of those Russell Midcap companies with lower price-to-book
ratios and lower forecasted growth values.
(5) Class Y Shares are only available for purchase by MEMBERS Funds and other
affiliated asset allocation funds, in managed account programs, and to
certain other investors as described in the current Prospectus.
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional
shares of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect
fees or expenses.
(7) Class A and B shares commenced investment operations on February 28, 2001.
The annualized since inception index return (without sales charges) is
also from February 28, 2001.
(8) Class Y shares commenced investment operations on June 30, 2006. The
annualized since inception index return (without sales charges) is also
from June 30, 2006.
(9) Assumes maximum applicable sales charge.
(10) The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's actual
expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
10
================================================================================
MID CAP GROWTH FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT SINCE INCEPTION(1,6)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares Russell Midcap(R)
(includes maximum sales charge)(2) Growth Index(4)
2/29/2000 $9,425 $10,000
4/30/2000 8,087 9,357
4/30/2001 5,353 6,599
4/30/2002 3,949 5,609
4/30/2003 3,450 4,674
4/30/2004 4,486 6,363
4/30/2005 4,562 6,812
4/30/2006 5,825 8,738
4/30/2007 6,598 9,710
4/30/2008 6,161 9,522
4/30/2009 4,006 6,126
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(9) EXPENSE RATIO(10)
Since Since
2/29/00 6/30/06 Since
1 Year 3 Years 5 Years Inception(7) Inception(8) 1 Year 3 Years 5 Years Inception(7) Gross Net
-------------------------------------------------------- ----------------------------------------- -----------
Class A
Shares(2) (34.98)% (11.73)% (2.24)% (8.91)% -- (38.75)% (13.47)% (3.39)% (9.50)% 1.44% 1.40%
Class B
Shares(3) (35.41) (12.42) (2.99) (9.59) -- (38.32) (13.45) (3.38) (9.59) 2.19 2.15
Class Y
Shares(5) (34.82) -- -- -- (10.38)% -- -- -- -- 1.19 1.15
Russell
Midcap(R)
Growth
Index(4) (35.66) (11.16) (0.76) (5.20) (10.06) NA NA NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B
shares, which is reduced after 12 months and eliminated after six years.
(4) The Russell Midcap(R) Growth Index is a mid-cap market index which measures
the performance of those Russell Midcap companies with higher price-to-book
ratios and higher forecasted growth values.
(5) Class Y Shares are only available for purchase by MEMBERS Funds and other
affiliated asset allocation funds, in managed account programs, and to
certain other investors as described in the current Prospectus.
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional
shares of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect
fees or expenses.
(7) Class A and B shares commenced investment operations on February 29, 2000.
The annualized since inception index return (without sales charges) is
also from February 29, 2000.
(8) Class Y shares commenced investment operations on June 30, 2006. The
annualized since inception index return (without sales charges) is also
from June 30, 2006.
(9) Assumes maximum applicable sales charge.
(10) The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's actual
expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
11
================================================================================
SMALL CAP VALUE FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT SINCE INCEPTION(1,6)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares Russell 2000(R)
(includes maximum sales charge)(2) Value Index(4)
12/27/2006 $ 9,425 $10,000
4/30/2007 10,028 10,246
4/30/2008 8,986 8,696
4/30/2009 6,601 5,968
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(9) EXPENSE RATIO(10)
Since Since Since
12/27/06 1/9/07 12/27/06
1 Year Inception(7) Inception(8) 1 Year Inception(7) Gross Net
---------------------------------------------- -------------------------- --------------
Class A Shares(2) (26.54)% (14.10)% -- (30.77)% (16.25)% 2.18% 1.50%
Class B Shares(3) (26.65) (14.53) -- (29.95) (15.80) 7.88 2.25
Class Y Shares(5) (26.23) -- (13.37)% -- -- 1.61 1.25
Russell 2000(R)
Value Index(4) (31.37) (19.76) (19.46) NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B
shares, which is reduced after 12 months and eliminated after six years.
(4) The Russell 2000(R) Value Index is a small-cap market index which measures
the performance of those Russell 2000 companies with lower price-to-book
ratios and lower forecasted growth values.
(5) Class Y Shares are only available for purchase by MEMBERS Funds and other
affiliated asset allocation funds, in managed account programs, and to
certain other investors as described in the current Prospectus.
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional
shares of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect
fees or expenses.
(7) Class A and B shares commenced investment operations on December 27, 2006.
The annualized since inception index return (without sales charges) is
also from December 27, 2006.
(8) Class Y shares commenced investment operations on January 9, 2007. The
annualized since inception index return (without sales charges) is also
from January 9, 2007.
(9) Assumes maximum applicable sales charge.
(10) The expense ratio is based on estimated expenses incurred by the fund, as
described in the current Prospectus. The net figures shown reflect the
fund's actual expense ratio after taking into account the investment
adviser's contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
12
================================================================================
SMALL CAP GROWTH FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT SINCE INCEPTION(1,6)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares Russell 2000(R)
(includes maximum sales charge)(2) Growth Index(4)
12/27/2006 $9,425 $10,000
4/30/2007 9,917 10,520
4/30/2008 9,070 9,815
4/30/2009 5,312 6,834
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(9) EXPENSE RATIO(10)
Since Since Since
12/27/06 1/9/07 12/27/06
1 Year Inception(7) Inception(8) 1 Year Inception(7) Gross Net
---------------------------------------------- -------------------------- --------------
Class A Shares(2) (41.43)% (21.71)% -- (44.80)% (23.66)% 2.17% 1.50%
Class B Shares(3) (41.76) (22.25) -- (44.38) (23.41) 9.51 2.25
Class Y Shares(5) (41.30) -- (21.28)% -- -- 1.56 1.25
Russell 2000(R)
Growth Index(4) (30.36) (14.98) (14.80) NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B
shares, which is reduced after 12 months and eliminated after six years.
(4) The Russell 2000(R) Growth Index is a small-cap market index which measures
the performance of those Russell 2000 companies with higher price-to-book
ratios and higher forecasted growth values.
(5) Class Y Shares are only available for purchase by MEMBERS Funds and other
affiliated asset allocation funds, in managed account programs, and to
certain other investors as described in the current Prospectus.
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional
shares of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect
fees or expenses.
(7) Class A and B shares commenced investment operations on December 27, 2006.
The annualized since inception index return (without sales charges) is
also from December 27, 2006.
(8) Class Y shares commenced investment operations on January 9, 2007. The
annualized since inception index return (without sales charges) is also
from January 9, 2007.
(9) Assumes maximum applicable sales charge.
(10) The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's actual
expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
13
================================================================================
INTERNATIONAL STOCK FUND PERFORMANCE REVIEW
- --------------------------------------------------------------------------------
CUMULATIVE PERFORMANCE OF $10,000 INVESTMENT(1,6)
[CHART OF CUMULATIVE PERFORMANCE]
Class A Shares MSCI EAFE
(includes maximum sales charge)(2) Index(4)
4/30/1999 $ 9,425 $10,000
4/30/2000 9,336 11,417
4/30/2001 8,190 9,584
4/30/2002 7,689 8,279
4/30/2003 6,712 6,961
4/30/2004 9,303 9,798
4/30/2005 10,984 11,309
4/30/2006 14,860 15,153
4/30/2007 16,934 18,232
4/30/2008 17,106 17,992
4/30/2009 10,539 10,360
[END CHART]
AVERAGE ANNUAL TOTAL RETURN THROUGH APRIL 30, 2009(6)
% RETURN WITHOUT SALES CHARGE % RETURN AFTER SALES CHARGE(7) EXPENSE RATIO(8)
Since
6/30/06
1 Year 3 Years 5 Years 10 Years Inception 1 Year 3 Years 5 Years 10 Years Gross Net
------------------------------------------------- ------------------------------------- --------------
Class A Shares(2) (38.39)% (10.82)% 2.53% 1.13% -- (41.92)% (12.56)% 1.32% 0.53% 1.93% 1.60%
Class B Shares(3) (38.85) (11.48) 1.78 0.37 -- (41.50) (12.24) 1.48 0.37 2.69 2.35
Class Y Shares(5) (38.19) -- -- -- (9.38)% -- -- -- -- 1.68 1.35
MSCI EAFE Index(4) (42.42) (11.91) 1.12 0.35 (10.25) NA NA NA NA NA NA
NA Not Applicable. Index returns do not reflect sales charges, fees or
expenses.
(1) This chart compares a $10,000 investment made in the fund to a $10,000
investment made in the index.
(2) Maximum sales charge is 5.75% for class A shares.
(3) Maximum contingent deferred sales charge (CDSC) is 4.5% for class B
shares, which is reduced after 12 months and eliminated after six years.
(4) The MSCI EAFE (Europe, Australasia & Far East) Index is free
float-adjusted market capitalization index that is designed to measure
developed market equity performance, excluding the U.S. and Canada.
(5) Class Y Shares are only available for purchase by MEMBERS Funds and other
affiliated asset allocation funds, in managed account programs, and to
certain other investors as described in the current Prospectus.
(6) Fund returns are calculated after fund expenses have been subtracted and
assume that dividends and capital gains are reinvested in additional
shares of the fund. Returns do not reflect the deduction of taxes that a
shareholder would pay on fund distributions or the redemption of fund
shares. Investment return and principal value will fluctuate, so an
investor's shares, when redeemed, may be worth more or less than when
purchased. Further information relating to the fund's performance is
contained in the Prospectus and elsewhere in this report. The fund's past
performance is not indicative of future performance. Current performance
may be lower or higher than the performance data cited. For fund
performance data current to the most recent month-end, please call
1-800-877-6089 or visit www.membersfunds.com. Indices are unmanaged and
investors cannot invest in them directly. Index returns do not reflect
fees or expenses.
(7) Assumes maximum applicable sales charge.
(8) The expense ratio is based on expenses incurred by the fund, as described
in the current Prospectus. The net figures shown reflect the fund's actual
expense ratio after taking into account the investment adviser's
contractual agreement to limit fund expenses.
- --------------------------------------------------------------------------------
14
================================================================================
CONSERVATIVE ALLOCATION FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF PORTFOLIO ALLOCATION]
Bond Funds 58%
Stock Funds 28%
Foreign Stock Funds 8%
Alternative Assets Class Funds 5%
Money Market Funds and Other Net Assets 1%
[END CHART]
PORTFOLIO HOLDINGS AS A PERCENTAGE OF TOTAL MARKET VALUE
AS OF APRIL 30, 2009
MEMBERS Bond Fund Class Y 30%
MEMBERS High Income Fund Class Y 13%
Dodge & Cox Income Fund 10%
MEMBERS Large Cap Growth Fund Class Y 9%
MEMBERS International Stock Fund Class Y 8%
MEMBERS Large Cap Value Fund Class Y 7%
Victory Special Value Fund Cass I 6%
Fairholme Fund 6%
Oppenheimer International Bond Fund 5%
Nakoma Absolute Return Fund Class Y 5%
SSgA Prime Money Market Fund 1%
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
INVESTMENT COMPANIES - 99.99%
- --------------------------------------------------------------------------------------------------
ALTERNATIVE ASSET CLASS FUNDS - 4.79%
65,730 Nakoma Absolute
Return Fund* ........................................ $ 1,382,296
-----------
BOND FUNDS - 58.01%
237,629 Dodge & Cox Income Fund ............................. 2,861,047
879,332 MEMBERS Bond Fund,
Class Y (R) ......................................... 8,696,590
618,930 MEMBERS High Income Fund,
Class Y (R) ......................................... 3,763,097
249,288 Oppenheimer International
Bond Fund, Class Y .................................. 1,428,419
-----------
16,749,153
-----------
STOCK FUNDS - 28.30%
76,511 Fairholme Fund ...................................... 1,751,336
-----------
8,169,347
-----------
232,045 MEMBERS Large Cap Growth
Fund, Class Y (R) ................................... 2,642,994
225,423 MEMBERS Large Cap Value
Fund, Class Y (R) ................................... 2,028,802
165,990 Victory Special Value Fund,
Class I ............................................. 1,746,215
FOREIGN STOCK FUNDS - 8.61%
317,491 MEMBERS International
Stock Fund, Class Y (R) ............................. 2,485,952
-----------
MONEY MARKET FUNDS - 0.28%
81,682 SSgA Prime Money Market
Fund ................................................ 81,682
-----------
TOTAL INVESTMENT COMPANIES - 99.99%
(Cost $32,867,959**) ................................ 28,868,430
NET OTHER ASSETS AND LIABILITIES - 0.01%
- --------------------------------------------------------------------------------------------------
2,052
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$ 28,870,482
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $34,213,313.
(R) Affiliated Company (see Note 10).
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
15
================================================================================
MODERATE ALLOCATION FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF PORTFOLIO ALLOCATION]
STOCK FUNDS 41%
Bond Funds 34%
Foreign Stock Funds 16%
Alternative Asset Class Funds 8%
Money Market Funds and Other Net Assets 1%
[END CHART]
PORTFOLIO HOLDINGS AS A PERCENTAGE OF TOTAL MARKET VALUE
AS OF APRIL 30, 2009
MEMBERS BOND FUND CLASS Y 17%
MEMBERS International Stock Fund Class Y 15%
MEMBERS Large Cap Growth Fund Class Y 12%
MEMBERS High Income Fund Class Y 10%
MEMBERS LARGE CAP VALUE FUND CLASS Y 9%
Victory Special Value Fund, Class I 6%
Fairholme Fund 6%
Gateway Fund Class Y 5%
Dodge & Cox Income Fund 4%
Oppenheimer International Bond Fund 3%
Nakoma Absolute Return Fund 3%
MEMBERS Mid Cap Growth Fund Class Y 3%
MEMBERS SMALL CAP VALUE FUND CLASS Y 3%
MEMBERS Small Cap Growth Fund Class Y 2%
Principal International Emerging Markets Fund 1%
SSgA Prime Money Market Fund 1%
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
INVESTMENT COMPANIES - 99.98%
- --------------------------------------------------------------------------------------------------
ALTERNATIVE ASSET CLASS FUNDS - 8.06%
157,469 Gateway Fund, Class Y ............................... $ 3,675,335
96,683 Nakoma Absolute Return
Fund*................................................ 2,033,248
-----------
5,708,583
-----------
BOND FUNDS - 33.79%
228,631 Dodge & Cox Income Fund ............................. 2,752,712
1,254,006 MEMBERS Bond Fund,
Class Y (R).......................................... 12,402,115
1,107,648 MEMBERS High Income Fund,
Class Y (R).......................................... 6,734,501
359,327 Oppenheimer International
Bond Fund, Class Y .................................. 2,058,945
-----------
23,948,273
-----------
STOCK FUNDS - 41.40%
180,510 Fairholme Fund ...................................... 4,131,882
773,833 MEMBERS Large Cap Growth
Fund, Class Y (R) ................................... 8,813,957
677,786 MEMBERS Large Cap Value
Fund, Class Y (R) ................................... 6,100,073
487,417 MEMBERS Mid Cap Growth
Fund, Class Y (R)* .................................. 2,071,524
298,282 MEMBERS Small Cap Growth
Fund, Class Y (R)* .................................. 1,670,381
294,935 MEMBERS Small Cap Value
Fund, Class Y (R) ................................... 2,008,510
431,792 Victory Special Value Fund,
Class I ............................................. 4,542,455
-----------
29,338,782
-----------
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
16
================================================================================
MODERATE ALLOCATION FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
INVESTMENT COMPANIES (CONTINUED)
- --------------------------------------------------------------------------------------------------
FOREIGN STOCK FUNDS - 16.59%
1,381,853 MEMBERS International Stock
Fund, Class Y (R) ................................... $10,819,911
61,539 Principal International Emerging
Markets Fund, Institutional
Class................................................ 940,934
-----------
11,760,845
-----------
MONEY MARKET FUNDS - 0.14%
98,727 SSgA Prime Money Market
Fund................................................. 98,727
-----------
TOTAL INVESTMENT COMPANIES - 99.98%
(Cost $89,110,871**) ................................ 70,855,210
NET OTHER ASSETS AND LIABILITIES - 0.02%
- --------------------------------------------------------------------------------------------------
14,631
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$70,869,841
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $92,182,467.
(R) Affiliated Company (see Note 10).
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
17
================================================================================
AGGRESSIVE ALLOCATION FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF PORTFOLIO ALLOCATION]
Stock Funds 56%
Foreign Stock Funds 26%
Bond Funds 10%
Alternative Asset Class Funds 7%
Money Market Funds and Other Net Assets 1%
[END CHART]
PORTFOLIO HOLDINGS AS A PERCENTAGE OF TOTAL MARKET VALUE
AS OF APRIL 30, 2009
MEMBERS International Stock Fund Class Y 19%
MEMBERS Large Cap Growth Fund Class Y 16%
Victory Special Value Fund 11%
MEMBERS Large Cap Value Fund Class Y 8%
Gateway Fund Class Y 7%
MEMBERS Mid Cap Growth Fund Class Y 7%
MEMBERS High Income Fund Class Y 6%
Laudus International MarketMasters Fund, Select Shares 5%
MEMBERS Small Cap Growth Fund Class Y 5%
Fairholme Fund 5%
MEMBERS Small Cap Value Fund Class Y 4%
MEMBERS Bond Fund Class Y 4%
Principal International Emerging Markets Fund 2%
SSgA Prime Money Market Fund 1%
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
INVESTMENT COMPANIES - 99.83%
- --------------------------------------------------------------------------------------------------
ALTERNATIVE ASSET CLASS FUNDS - 7.23%
71,236 Gateway Fund, Class Y ........................................... $ 1,662,643
-----------
BOND FUNDS - 10.02%
84,016 MEMBERS Bond Fund, Class Y (R)................................... 830,922
242,544 MEMBERS High Income Fund, Class Y (R)............................ 1,474,671
-----------
2,305,593
-----------
STOCK FUNDS - 55.80%
51,431 Fairholme Fund .................................................. 1,177,252
321,073 MEMBERS Large Cap Growth Fund, Class Y (R) ...................... 3,657,025
215,497 MEMBERS Large Cap Value Fund, Class Y (R) ....................... 1,939,476
350,160 MEMBERS Mid Cap Growth Fund, Class Y (R)* ....................... 1,488,179
181,330 MEMBERS Small Cap GrowthFund, Class Y (R)* ...................... 1,015,446
163,129 MEMBERS Small Cap ValueFund, Class Y (R) ........................ 1,110,909
233,231 Victory Special Value Fund, Class I ............................. 2,453,588
-----------
12,841,875
-----------
FOREIGN STOCK FUNDS - 26.55%
102,492 Laudus International MarketMasters Fund, Select Shares .......... 1,147,906
557,673 MEMBERS International Stock Fund, Class Y (R) ................... 4,366,580
39,007 Principal International Emerging Markets Fund, Institutional
Class ........................................................... 596,419
-----------
6,110,905
-----------
MONEY MARKET FUNDS - 0.23%
52,849 SSgA Prime Money Market Fund..................................... 52,849
-----------
TOTAL INVESTMENT COMPANIES - 99.83%
(Cost $31,258,888**) ............................................ 22,973,865
NET OTHER ASSETS AND LIABILITIES - 0.17%
- --------------------------------------------------------------------------------------------------
39,825
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$23,013,690
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $32,485,156.
(R) Affiliated Company (see Note 10).
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
18
================================================================================
CASH RESERVES FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF PORTFOLIO ALLOCATION]
Federal National Mortgage Association 36%
Federal Home Loan Mortgage Corp. 29%
Federal Home Loan Bank 11%
U.S. Treasury Bills 10%
Cash and Other Net Assets 8%
U.S. Cash Management Bills 3%
Commercial Paper 3%
[END CHART]
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- --------------
COMMERCIAL PAPER - 3.31%
- --------------------------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS - 3.31%
$ 800,000 Chevron Corp.
0.270%, due 05/13/09 ............................................ $ 799,928
------------
TOTAL COMMERCIAL PAPER
(Cost $799,928).................................................. 799,928
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 88.95%
- --------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK - 10.91% (A)
500,000 0.160%, due 05/06/09 ............................................ 499,989
685,000 0.080%, due 05/07/09 ............................................ 684,991
780,000 0.010%, due 05/22/09 ............................................ 779,945
675,000 0.100%, due 05/27/09 ............................................ 674,951
------------
2,639,876
------------
FEDERAL HOME LOAN MORTGAGE CORP. - 28.96%
725,000 0.140%, due 05/08/09 (A)......................................... 724,980
500,000 0.130%, due 05/19/09 (A)......................................... 499,968
600,000 5.250%, due 05/21/09 ............................................ 601,648
650,000 0.210%, due 06/01/09 (A)......................................... 649,882
750,000 5.000%, due 06/11/09 ............................................ 753,874
398,000 0.350%, due 06/17/09 (A)......................................... 397,818
800,000 0.350%, due 06/22/09 (A)......................................... 799,595
1,080,000 0.140%, due 06/26/09 (A)......................................... 1,079,765
750,000 0.230%, due 07/06/09 (A)......................................... 749,684
750,000 0.401%, due 10/08/09 (G) ........................................ 749,827
------------
7,007,041
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION - 36.07%
370,000 0.200%, due 05/06/09 (A)......................................... 369,990
850,000 0.200%, due 05/11/09 (A)......................................... 849,953
837,000 4.250%, due 05/15/09 ............................................ 838,187
681,000 0.280%, due 05/18/09 (A)......................................... 680,899
1,000,000 0.070%, due 05/20/09 (A)......................................... 999,963
738,000 0.220%, due 05/26/09 (A)......................................... 737,818
220,000 0.450%, due 05/29/09 (A)......................................... 219,923
685,000 4.200%, due 06/08/09 ............................................ 687,666
350,000 0.360%, due 06/10/09 (A)......................................... 349,860
850,000 6.375%, due 06/15/09 ............................................ 856,340
750,000 0.210%, due 06/23/09 (A)......................................... 749,768
227,000 0.350%, due 06/24/09 (A)......................................... 226,881
500,000 6.625%, due 09/15/09 ............................................ 511,112
650,000 0.760%, due 11/02/09 (A)......................................... 647,461
------------
8,725,821
------------
U.S. CASH MANAGEMENT BILLS - 3.10% (A)
750,000 0.130%, due 06/24/09 ............................................ 749,852
------------
U.S. TREASURY BILLS - 9.91% (A)
850,000 0.107%, due 05/28/09 ............................................ 849,932
750,000 0.239%, due 10/15/09 ............................................ 749,168
800,000 0.297%, due 11/19/09 ............................................ 798,667
------------
2,397,767
------------
TOTAL U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(Cost $21,520,357) .............................................. 21,520,357
Shares
- ------
INVESTMENT COMPANIES - 7.10%
- --------------------------------------------------------------------------------------------------
850,611 SEI Daily Income Trust Treasury II Fund ......................... 850,611
867,485 SSgA U.S. Treasury Money Market Fund ............................ 867,485
TOTAL INVESTMENT COMPANIES
(Cost $1,718,096) ............................................... 1,718,096
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
19
================================================================================
CASH RESERVES FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Value (Note 2)
--------------
TOTAL INVESTMENTS - 99.36%
- --------------------------------------------------------------------------------------------------
(Cost $24,038,381**) .......................................................... $ 24,038,381
NET OTHER ASSETS AND LIABILITIES - 0.64%
- --------------------------------------------------------------------------------------------------
155,416
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$ 24,193,797
- --------------------------------------------------------------------------------
** Aggregate cost for Federal tax purposes was $24,038,381.
(A) Rate noted represents annualized yield at time of purchase.
(G) Floating rate note. Date shown is next reset date.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from
the industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
20
================================================================================
BOND FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF PORTFOLIO ALLOCATION]
U.S. Government and Agency Obligations 45%
Mortgage Backed 24%
Corporate Notes and Bonds 18%
Cash and Other Net Assets 6%
Commercial Paper 3%
Commercial Mortgage Backed 2%
Private Label Mortgage Backed 1%
Asset Backed 1%
[END CHART]
Par Value Value (Note 2)
- --------- -------------
ASSET BACKED - 1.32%
- ------------------------------------------------------------------------------
$ 64,040 ABSC Long Beach Home Equity Loan
Trust, Series 2000-LB1, Class AF5 (M)
8.550%, due 09/21/30 .................... $ 60,622
213,096 Ameriquest Mortgage Securities, Inc.,
Series 2004-FR1, Class M2 (M)
5.207%, due 05/25/34 .................... 52,264
670,000 Chase Issuance Trust,
Series 2007-A17, Class A
5.120%, due 10/15/14 .................... 691,177
560,000 GMAC Mortgage Corp. Loan Trust,
Series 2004-HE2, Class M1 (G)
3.950%, due 10/25/33 .................... 414,719
283,566 Green Tree Financial Corp.,
Series 1998-2, Class A6 (G)
6.810%, due 12/01/27 .................... 207,940
1,500,000 New Century Home Equity Loan Trust,
Series 2003-5, Class AI5 (G)
5.500%, due 11/25/33 .................... 995,930
262,097 Wells Fargo Home Equity Trust,
Series 2004-2, Class M8A (C)(G)
3.438%, due 05/25/34 .................... 20,354
------------
TOTAL ASSET BACKED
(Cost $3,552,196) ....................... 2,443,006
COMMERCIAL MORTGAGE BACKED - 2.10%
- ------------------------------------------------------------------------------
110,196 Bear Stearns Commercial Mortgage
Securities, Series 2001-TOP4, Class A1
5.060%, due 11/15/16 .................... 110,721
640,000 Bear Stearns Commercial Mortgage
Securities, Series 2003-T10,
Class E (C)(G)
5.540%, due 03/13/40 .................... 266,978
525,000 Bear Stearns Commercial Mortgage
Securities, Series 2004-T16,
Class A6 (G)
4.750%, due 02/13/46 .................... 454,535
325,000 Bear Stearns Commercial Mortgage
Securities, Series 2005-T20,
Class F (C)(G)
5.150%, due 10/12/42 .................... 76,506
688,000 Government National Mortgage
Association, Series 2004-43,
Class C (G)
5.008%, due 12/16/25 .................... 722,197
1,200,000 Greenwich Capital Commercial
Funding Corp., Series 2004-GG1,
Class A7 (G)
5.317%, due 06/10/36 .................... 1,106,519
800,000 LB-UBS Commercial
Mortgage Trust,
Series 2004-C8, Class A6 (G)
4.799%, due 12/15/29 .................... 600,917
575,000 Morgan Stanley Capital I,
Series 2004-HQ4, Class A7
4.970%, due 04/14/40 .................... 511,455
330,000 Multi Security Asset Trust,
Series 2005-RR4A, Class J (C)(G)
5.880%, due 11/28/35 .................... 25,865
------------
TOTAL COMMERCIAL MORTGAGE BACKED
(Cost $5,150,282) ....................... 3,875,693
PRIVATE LABEL MORTGAGE BACKED - 0.79%
- ------------------------------------------------------------------------------
742,059 Banc of America Alternative Loan Trust,
Series 2005-12, Class 3CB1
6.000%, due 01/25/36 .................... 515,963
1,453,469 Banc of America Alternative Loan Trust,
Series 2006-3, Class 2CB1
6.000%, due 04/25/36 .................... 937,942
------------
TOTAL PRIVATE LABEL MORTGAGE BACKED
(Cost $2,186,160) ....................... 1,453,905
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
21
================================================================================
BOND FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- -------------
CORPORATE NOTES AND BONDS - 18.33%
- ------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.18%
$ 750,000 American Association of Retired
Persons (C)
7.500%, due 05/01/31 .................... $ 804,973
575,000 Erac USA Finance Co. (C)
6.700%, due 06/01/34 .................... 361,811
1,000,000 McDonald's Corp.
5.000%, due 02/01/19 .................... 1,013,762
------------
2,180,546
------------
CONSUMER STAPLES - 1.31%
1,000,000 Campbell Soup Co.
4.500%, due 02/15/19 .................... 986,673
215,000 PepsiCo, Inc./NC
4.650%, due 02/15/13 .................... 228,816
1,000,000 PepsiCo, Inc./NC
7.900%, due 11/01/18 .................... 1,206,873
------------
2,422,362
------------
ENERGY - 0.78%
240,000 Hess Corp.
7.875%, due 10/01/29 .................... 227,769
850,000 Transocean, Inc.
6.000%, due 03/15/18 .................... 840,513
450,000 Valero Energy Corp.
7.500%, due 04/15/32 .................... 370,058
------------
1,438,340
------------
FINANCE - 3.43%
500,000 American General Finance
Corp., Series H
4.625%, due 09/01/10 .................... 299,268
215,000 Bank of America Corp.
5.750%, due 12/01/17 .................... 175,646
420,000 Bear Stearns Cos. LLC/The
7.250%, due 02/01/18 .................... 428,912
1,250,000 Caterpillar Financial Services Corp.
7.050%, due 10/01/18 .................... 1,235,421
255,000 CIT Group, Inc.
7.625%, due 11/30/12 .................... 158,153
290,000 General Electric Global Insurance
Holding Corp.
7.000%, due 02/15/26 .................... 226,768
330,000 General Electric Global Insurance
Holding Corp.
7.750%, due 06/15/30 .................... 266,527
750,000 Goldman Sachs Group, Inc./The
5.700%, due 09/01/12 .................... 755,099
520,000 Lehman Brothers Holdings, Inc. (E)
5.750%, due 01/03/17 .................... 52
530,000 Merrill Lynch & Co., Inc.
6.150%, due 04/25/13 .................... 487,282
440,000 SLM Corp.
5.125%, due 08/27/12 .................... 303,692
800,000 Textron Financial Corp.
6.000%, due 11/20/09 .................... 764,255
250,000 UBS AG/Stamford Branch
5.750%, due 04/25/18 .................... 216,205
500,000 US Bank NA/Cincinnati, OH
6.300%, due 02/04/14 .................... 519,978
485,000 Wells Fargo & Co.
5.250%, due 10/23/12 .................... 484,845
------------
6,322,103
------------
FOOD & DRUG RETAILERS - 0.54%
1,000,000 Walgreen Co.
5.250%, due 01/15/19 .................... 994,666
------------
FORESTRY/PAPER - 0.34%
325,000 Westvaco Corp.
8.200%, due 01/15/30 .................... 248,363
500,000 Weyerhaeuser Co.
7.375%, due 03/15/32 .................... 380,300
------------
628,663
------------
HEALTH CARE - 0.80%
500,000 Eli Lilly & Co.
6.570%, due 01/01/16 .................... 518,753
325,000 Genentech, Inc.
5.250%, due 07/15/35 .................... 274,168
500,000 Merck & Co., Inc./NJ
5.750%, due 11/15/36 .................... 458,172
230,000 Wyeth
6.500%, due 02/01/34 .................... 232,808
------------
1,483,901
------------
INDUSTRIALS - 2.59%
240,000 Boeing Co./The
8.625%, due 11/15/31 .................... 285,421
215,000 DR Horton, Inc.
5.250%, due 02/15/15 .................... 178,450
105,000 EI Du Pont de Nemours & Co.
5.000%, due 01/15/13 .................... 108,902
800,000 General Electric Co.
5.000%, due 02/01/13 .................... 821,132
275,000 GMAC LLC
7.250%, due 03/02/11 .................... 225,502
1,000,000 Hewlett-Packard Co.
6.125%, due 03/01/14 .................... 1,099,652
1,000,000 Honeywell International, Inc.
3.875%, due 02/15/14 .................... 1,007,998
270,000 Lockheed Martin Corp.
7.650%, due 05/01/16 .................... 306,295
235,000 Waste Management, Inc.
7.125%, due 12/15/17 .................... 223,467
525,000 WM Wrigley Jr. Co.
4.300%, due 07/15/10 .................... 517,125
------------
4,773,944
------------
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
22
================================================================================
BOND FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- -------------
CORPORATE NOTES AND BONDS (CONTINUED)
- ------------------------------------------------------------------------------
MEDIA - 1.18%
$ 525,000 Comcast Cable Communications
Holdings, Inc.
9.455%, due 11/15/22 .................... $ 610,102
455,000 Rogers Communications, Inc. (D)
6.250%, due 06/15/13 .................... 464,173
1,000,000 Time Warner Cable, Inc.
8.250%, due 02/14/14 .................... 1,096,807
------------
2,171,082
------------
OFFICE ELECTRONICS - 0.36%
660,000 Xerox Corp.
6.875%, due 08/15/11 .................... 661,966
------------
REAL ESTATE INVESTMENT TRUSTS - 0.33%
490,000 HCP, Inc.
6.700%, due 01/30/18 .................... 384,381
270,000 Simon Property Group L.P.
5.875%, due 03/01/17 .................... 215,830
------------
600,211
------------
TELECOMMUNICATIONS - 3.27%
1,500,000 AT&T, Inc.
4.850%, due 02/15/14 .................... 1,555,458
400,000 Cisco Systems, Inc.
5.500%, due 02/22/16 .................... 423,273
775,000 New Cingular Wireless Services, Inc.
7.875%, due 03/01/11 .................... 840,381
265,000 Sprint Nextel Corp.
6.000%, due 12/01/16 .................... 219,950
1,000,000 Verizon Communications, Inc.
8.750%, due 11/01/18 .................... 1,194,842
1,500,000 Verizon Wireless Capital LLC (C)
8.500%, due 11/15/18 .................... 1,796,405
------------
6,030,309
------------
TRANSPORTATION - 0.54%
285,000 Burlington Northern Santa Fe Corp.
8.125%, due 04/15/20 .................... 313,802
359,000 Norfolk Southern Corp.
5.590%, due 05/17/25 .................... 306,141
390,000 Norfolk Southern Corp.
7.050%, due 05/01/37 .................... 385,211
------------
1,005,154
------------
UTILITIES - 1.68%
500,000 Energy East Corp.
8.050%, due 11/15/10 .................... 515,655
450,000 Illinois Power Co.
7.500%, due 06/15/09 .................... 450,824
285,000 Pacific Gas & Electric Co.
6.050%, due 03/01/34 .................... 285,992
250,000 Progress Energy, Inc.
7.750%, due 03/01/31 .................... 263,500
650,000 Sierra Pacific Power Co., Series M
6.000%, due 05/15/16 .................... 623,968
215,000 Virginia Electric and Power Co.
5.100%, due 11/30/12 .................... 221,411
750,000 Wisconsin Electric Power Co.
6.500%, due 06/01/28 .................... 737,732
------------
3,099,082
------------
TOTAL CORPORATE NOTES AND BONDS
(Cost $35,269,048) ...................... 33,812,329
MORTGAGE BACKED - 24.11%
- ------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE CORP. - 2.48%
478,558 5.000%, due 05/01/18
Pool # E96322 ........................... 498,505
4,999 8.000%, due 06/01/30
Pool # C01005 ........................... 5,477
8,511 7.000%, due 03/01/31
Pool # C48133 ........................... 9,145
111,775 6.500%, due 01/01/32
Pool # C62333 ........................... 119,724
1,858,696 5.000%, due 07/01/33
Pool # A11325 ........................... 1,916,960
164,259 6.000%, due 10/01/34
Pool # A28439 ........................... 172,539
138,166 6.000%, due 10/01/34
Pool # A28598 ........................... 145,131
171,324 5.000%, due 04/01/35
Pool # A32315 ........................... 176,427
142,993 5.000%, due 04/01/35
Pool # A32316 ........................... 147,252
1,323,128 5.500%, due 11/01/37
Pool # A68787 ........................... 1,369,940
------------
4,561,100
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 21.58%
672,589 4.000%, due 04/01/15
Pool # 255719 ........................... 683,210
481,615 5.500%, due 04/01/16
Pool # 745444 ........................... 499,837
33,378 6.000%, due 05/01/16
Pool # 582558 ........................... 35,234
429,132 5.500%, due 02/01/18
Pool # 673194 ........................... 449,700
601,397 5.000%, due 05/01/20
Pool # 813965 ........................... 624,208
748,319 4.500%, due 09/01/20
Pool # 835465 ........................... 771,587
62,477 6.000%, due 05/01/21
Pool # 253847 ........................... 65,983
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
23
================================================================================
BOND FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- -------------
MORTGAGE BACKED (CONTINUED)
- ------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (CONTINUED)
$ 2,719,687 4.500%, due 04/01/23
Pool # 974401 ........................... $ 2,797,725
1,917,580 4.500%, due 06/01/23
Pool # 984075 ........................... 1,972,603
28,824 7.000%, due 12/01/29
Pool # 762813 ........................... 31,255
59,986 7.000%, due 11/01/31
Pool # 607515 ........................... 64,727
254,422 6.500%, due 03/01/32
Pool # 631377 ........................... 272,593
2,252 7.000%, due 04/01/32
Pool # 641518 ........................... 2,428
31,249 7.000%, due 05/01/32
Pool # 644591 ........................... 33,719
739,072 6.500%, due 06/01/32
Pool # 545691 ........................... 791,858
272,272 6.000%, due 12/01/32
Pool # 676552 ........................... 287,613
1,665,537 5.500%, due 04/01/33
Pool # 690206 ........................... 1,732,840
786,254 5.000%, due 10/01/33
Pool # 254903 ........................... 812,007
1,164,483 5.500%, due 11/01/33
Pool # 555880 ........................... 1,211,539
120,964 5.000%, due 05/01/34
Pool # 775604 ........................... 124,756
312,499 5.000%, due 05/01/34
Pool # 780890 ........................... 322,295
186,702 5.000%, due 06/01/34
Pool # 255230 ........................... 192,554
1,458,780 5.500%, due 06/01/34
Pool # 780384 ........................... 1,516,588
17,533 7.000%, due 07/01/34
Pool # 792636 ........................... 18,846
268,415 5.500%, due 08/01/34
Pool # 793647 ........................... 279,052
1,325,230 5.500%, due 03/01/35
Pool # 815976 ........................... 1,376,504
590,782 5.500%, due 07/01/35
Pool # 825283 ........................... 613,640
784,924 5.000%, due 08/01/35
Pool # 829670 ........................... 809,038
379,329 5.500%, due 08/01/35
Pool # 826872 ........................... 394,005
588,642 5.000%, due 09/01/35
Pool # 820347 ........................... 606,727
611,977 5.000%, due 09/01/35
Pool # 835699 ........................... 630,779
764,855 5.000%, due 10/01/35
Pool # 797669 ........................... 788,353
824,314 5.500%, due 10/01/35
Pool # 836912 ........................... 856,207
696,599 5.000%, due 11/01/35
Pool # 844504 ........................... 718,000
821,971 5.000%, due 11/01/35
Pool # 844809 ........................... 847,224
833,051 5.000%, due 12/01/35
Pool # 850561 ........................... 858,644
1,350,428 6.000%, due 07/01/36
Pool # 870749 ........................... 1,414,282
801,612 6.000%, due 11/01/36
Pool # 902510 ........................... 847,649
741,450 5.500%, due 02/01/37
Pool # 905140 ........................... 769,210
776,326 5.500%, due 05/01/37
Pool # 899323 ........................... 805,150
1,145,567 5.500%, due 05/01/37
Pool # 928292 ........................... 1,188,100
976,379 6.000%, due 10/01/37
Pool # 947563 ........................... 1,021,784
2,078,733 6.500%, due 12/01/37
Pool # 889072 ........................... 2,205,323
2,179,161 5.000%, due 04/01/38
Pool # 257160 ........................... 2,243,603
1,173,300 5.500%, due 07/01/38
Pool # 986805 ........................... 1,216,797
1,270,111 5.500%, due 07/01/38
Pool # 986973 ........................... 1,317,196
1,311,650 5.000%, due 08/01/38
Pool # 988934 ........................... 1,350,438
1,256,186 6.500%, due 08/01/38
Pool # 987711 ........................... 1,332,685
------------
39,806,095
------------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 0.05%
17,516 8.000%, due 10/20/15
Pool # 002995 ........................... 18,709
44,473 6.500%, due 02/20/29
Pool # 002714 ........................... 47,515
26,962 6.500%, due 04/20/31
Pool # 003068 ........................... 28,776
------------
95,000
------------
TOTAL MORTGAGE BACKED
(Cost $42,569,513) ...................... 44,462,195
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 44.70%
- ------------------------------------------------------------------------------
FEDERAL FARM CREDIT BANK - 0.30%
500,000 5.875%, due 10/03/16 .................... 559,924
------------
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
24
================================================================================
BOND FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- -------------
U.S. GOVERNMENT AND AGENCY OBLIGATIONS (CONTINUED)
- ------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE
CORP. - 2.77%
$ 1,900,000 0.100%, due 05/04/09 (A)................. $ 1,899,984
2,500,000 4.875%, due 11/15/13 .................... 2,768,303
400,000 4.500%, due 01/15/14 .................... 436,585
------------
5,104,872
------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 1.65%
1,832,000 4.250%, due 05/15/09 .................... 1,834,788
1,095,000 4.625%, due 10/15/14 .................... 1,204,755
------------
3,039,543
------------
U.S. TREASURY BILLS - 1.89% (A)
3,500,000 0.320%, due 12/17/09 .................... 3,492,856
------------
U.S. TREASURY BONDS - 5.30%
2,905,000 6.625%, due 02/15/27 .................... 3,851,850
5,500,000 4.500%, due 05/15/38 .................... 5,918,517
------------
9,770,367
------------
U.S. TREASURY NOTES - 32.79%
21,000,000 0.875%, due 01/31/11 .................... 21,017,220
3,100,000 0.875%, due 02/28/11 .................... 3,100,372
5,000,000 1.750%, due 11/15/11 .................... 5,069,550
4,000,000 1.125%, due 12/15/11 .................... 3,991,248
225,000 1.375%, due 02/15/12 .................... 225,615
1,000,000 4.625%, due 02/29/12 .................... 1,092,500
1,200,000 4.500%, due 03/31/12 .................... 1,308,187
7,000,000 3.125%, due 08/31/13 .................... 7,382,816
6,500,000 4.000%, due 02/15/14 .................... 7,101,757
4,860,000 4.250%, due 08/15/14 .................... 5,389,663
2,000,000 4.250%, due 11/15/17 .................... 2,193,594
2,700,000 2.750%, due 02/15/19 .................... 2,615,193
------------
60,487,715
------------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $79,959,682) ...................... 82,455,277
COMMERCIAL PAPER - 3.25% (A)
- ------------------------------------------------------------------------------
INDUSTRIALS - 3.25%
6,000,000 General Electric Co.
0.320%, due 05/11/09 .................... 5,999,467
------------
TOTAL COMMERCIAL PAPER
(Cost $5,999,467) ....................... 5,999,467
Shares
- ------
INVESTMENT COMPANIES - 4.41%
- ------------------------------------------------------------------------------
8,126,942 SSgA Prime Money
Market Fund ............................. 8,126,942
------------
TOTAL INVESTMENT COMPANY
(Cost $8,126,942) ....................... 8,126,942
TOTAL INVESTMENTS - 99.01%
- ------------------------------------------------------------------------------
(Cost $182,813,290**) .................................. 182,628,814
NET OTHER ASSETS AND LIABILITIES - 0.99%
- ------------------------------------------------------------------------------
1,820,966
TOTAL NET ASSETS - 100.00%
- ------------------------------------------------------------------------------
$184,449,780
- --------------------------------------------------------------------------------
** Aggregate cost for Federal tax purposes was $182,814,526.
(A) Rate noted represents annualized yield at time of purchase.
(C) Security sold within terms of a private placement memorandum exempt from
registration under section 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "qualified
institutional investors." The securities have been determined to be liquid
under guidelines established by the Board of Trustees.
(D) Notes and bonds, issued by foreign entities, denominated in U.S. dollars.
The aggregate of these securities is 0.25% of total net assets.
(E) In Default. Issuer is bankrupt.
(G) Floating rate or variable rate note. Rate shown is as of April 30, 2009.
(M) Stated interest rate is contingent upon sufficient collateral market value.
If collateral market value falls below a stated level, the issuer will
either initiate a clean-up call or increase the stated interest rate.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from the
industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
25
================================================================================
HIGH INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF SECTOR ALLOCATION]
Health Care 15%
Media - Cable 10%
Telecommunications 10%
Utilities 8%
Cash and Other Net Assets 7%
Oil and Gas 6%
Support Services 5%
Media - Diversified and Services 4%
Technology 4%
Forestry/Paper 4%
Gaming 3%
Environmental 3%
Food and Drug Retailers 2%
Packaging 2%
Metals and Mining 2%
Consumer Products 2%
Beverage/Food 2%
Aerospace/Defense 2%
Chemicals 2%
General Industrial and Manufacturing 2%
Media - Broadcasting 1%
Automotive 1%
Transportation 1%
Non Food and Drug Retailers 1%
Leisure and Entertainment 1%
Apparel/Textiles 0%*
Investment Management 0%*
Hotels 0%*
[ENDCHART]
* Rounds to 0%
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- -------------
CORPORATE NOTES AND BONDS - 93.19%
- ------------------------------------------------------------------------------
AEROSPACE/DEFENSE - 1.88%
$ 750,000 Alliant Techsystems, Inc.
6.750%, due 04/01/16 .................... $ 729,375
500,000 Moog, Inc. (C)
7.250%, due 06/15/18 .................... 462,500
500,000 TransDigm, Inc.
7.750%, due 07/15/14 .................... 488,750
------------
1,680,625
------------
APPAREL/TEXTILES - 0.22%
200,000 Warnaco, Inc.
8.875%, due 06/15/13 .................... 200,500
------------
AUTOMOTIVE - 1.10%
1,000,000 Goodyear Tire & Rubber Co./The (G)
6.318%, due 12/01/09 .................... 986,250
------------
BEVERAGE/FOOD - 2.01%
150,000 B&G Foods, Inc.
8.000%, due 10/01/11 .................... 144,750
400,000 Constellation Brands, Inc.
7.250%, due 05/15/17 .................... 386,000
200,000 Constellation Brands, Inc., Series B
8.125%, due 01/15/12 .................... 199,000
500,000 Del Monte Corp.
8.625%, due 12/15/12 .................... 510,000
125,000 Michael Foods, Inc.
8.000%, due 11/15/13 .................... 118,125
200,000 NBTY, Inc.
7.125%, due 10/01/15 .................... 180,000
300,000 Pinnacle Foods Finance LLC/
Pinnacle Foods Finance Corp.
9.250%, due 04/01/15 .................... 254,250
------------
1,792,125
------------
CHEMICALS - 1.64%
300,000 Airgas, Inc. (C)
7.125%, due 10/01/18 .................... 291,750
1,000,000 Nalco Co.
7.750%, due 11/15/11 .................... 1,010,000
160,000 Nalco Co.
8.875%, due 11/15/13 .................... 160,800
------------
1,462,550
------------
CONSUMER PRODUCTS - 2.11%
250,000 Church & Dwight Co., Inc.
6.000%, due 12/15/12 .................... 250,000
135,000 Da-Lite Screen Co., Inc.
9.500%, due 05/15/11 .................... 121,500
500,000 Jarden Corp.
8.000%, due 05/01/16 .................... 487,500
250,000 Jarden Corp.
7.500%, due 05/01/17 .................... 221,250
300,000 Leslie's Poolmart
7.750%, due 02/01/13 .................... 280,500
300,000 Visant Corp.
7.625%, due 10/01/12 .................... 291,000
250,000 Visant Holding Corp.
8.750%, due 12/01/13 .................... 230,000
------------
1,881,750
------------
ENVIRONMENTAL - 2.92%
250,000 Allied Waste North America, Inc.
6.375%, due 04/15/11 .................... 251,250
750,000 Allied Waste North America, Inc.
7.875%, due 04/15/13 .................... 761,250
500,000 Allied Waste North America, Inc.,
Series B
7.125%, due 05/15/16 .................... 490,000
350,000 Casella Waste Systems, Inc.
9.750%, due 02/01/13 .................... 304,500
200,000 Covanta Holding Corp. (P)
1.000%, due 02/01/27 .................... 163,250
500,000 Waste Services, Inc.
9.500%, due 04/15/14 .................... 435,000
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
26
================================================================================
HIGH INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- -------------
CORPORATE NOTES AND BONDS (CONTINUED)
- ------------------------------------------------------------------------------
ENVIRONMENTAL (CONTINUED)
$ 250,000 WCA Waste Corp.
9.250%, due 06/15/14 .................... $ 202,500
------------
2,607,750
------------
FOOD & DRUG RETAILERS - 2.40%
750,000 Ingles Markets, Inc. (C)(H)
8.875%, due 05/15/17 .................... 724,110
450,000 Stater Brothers Holdings
8.125%, due 06/15/12 .................... 444,375
250,000 Stater Brothers Holdings
7.750%, due 04/15/15 .................... 241,250
750,000 SUPERVALU, Inc. (H)
8.000%, due 05/01/16 .................... 730,117
------------
2,139,852
------------
FORESTRY/PAPER - 3.51%
750,000 Domtar Corp.
7.875%, due 10/15/11 .................... 667,500
250,000 Georgia-Pacific LLC
8.125%, due 05/15/11 .................... 250,625
500,000 Georgia-Pacific LLC (C)
8.250%, due 05/01/16 .................... 500,000
250,000 Georgia-Pacific LLC (C)
7.125%, due 01/15/17 .................... 236,250
1,000,000 Graphic Packaging
International, Inc.
8.500%, due 08/15/11 .................... 977,500
250,000 Rock-Tenn Co.
8.200%, due 08/15/11 .................... 251,250
250,000 Rock-Tenn Co.
9.250%, due 03/15/16 .................... 254,375
------------
3,137,500
------------
GAMING - 3.17%
195,000 Global Cash Access, Inc./
Global Cash Finance Corp.
8.750%, due 03/15/12 .................... 171,600
500,000 International Game
Technology (P)
2.600%, due 12/15/36 .................... 484,375
150,000 Penn National Gaming, Inc.
6.875%, due 12/01/11 .................... 146,250
150,000 Penn National Gaming, Inc.
6.750%, due 03/01/15 .................... 138,375
500,000 Pinnacle Entertainment, Inc.
8.250%, due 03/15/12 .................... 487,500
500,000 Scientific Games Corp. (C)
7.875%, due 06/15/16 .................... 455,000
1,000,000 Scientific Games Corp. (B)(P)
0.750%, due 12/01/24 .................... 943,750
------------
2,826,850
------------
GENERAL INDUSTRIAL & MANUFACTURING - 1.58%
750,000 Baldor Electric Co.
8.625%, due 02/15/17 .................... 663,750
750,000 SPX Corp.
7.625%, due 12/15/14 .................... 740,625
------------
1,404,375
------------
HEALTH CARE - 14.85%
500,000 Biomet, Inc.
10.000%, due 10/15/17 ................... 520,000
1,000,000 Biomet, Inc.
11.625%, due 10/15/17 ................... 970,000
450,000 CHS/Community Health
Systems, Inc.
8.875%, due 07/15/15 .................... 447,750
1,000,000 DaVita, Inc.
7.250%, due 03/15/15 .................... 977,500
1,000,000 DJO Finance LLC/DJO
Finance Corp.
10.875%, due 11/15/14 ................... 765,000
500,000 FMC Finance III S.A.
6.875%, due 07/15/17 .................... 490,000
1,000,000 Fresenius US Finance II, Inc. (C)
9.000%, due 07/15/15 .................... 1,050,000
500,000 HCA, Inc./DE
8.750%, due 09/01/10 .................... 498,750
750,000 HCA, Inc./DE
6.300%, due 10/01/12 .................... 663,750
500,000 HCA, Inc./DE
6.750%, due 07/15/13 .................... 430,000
200,000 HCA, Inc./DE
9.250%, due 11/15/16 .................... 198,000
450,000 Hologic, Inc. (B)(P)
2.000%, due 12/15/37 .................... 318,375
100,000 IASIS Healthcare LLC/
IASIS Capital Corp.
8.750%, due 06/15/14 .................... 98,250
500,000 Kinetic Concepts, Inc. (C)(P)
3.250%, due 04/15/15 .................... 373,125
500,000 Omega Healthcare Investors,
Inc., REIT
7.000%, due 04/01/14 .................... 466,250
1,000,000 Omnicare, Inc.
6.875%, due 12/15/15 .................... 937,500
1,000,000 Psychiatric Solutions, Inc.
7.750%, due 07/15/15 .................... 915,000
400,000 Service Corp. International/US
7.375%, due 10/01/14 .................... 384,000
500,000 Service Corp. International/US
6.750%, due 04/01/16 .................... 450,000
250,000 Service Corp. International/US
7.625%, due 10/01/18 .................... 228,125
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
27
================================================================================
HIGH INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- -------------
CORPORATE NOTES AND BONDS (CONTINUED)
- ------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
$ 250,000 Universal Hospital Services, Inc. (G)
5.943%, due 06/01/15 .................... $ 191,875
450,000 Vanguard Health Holding
Co. II LLC
9.000%, due 10/01/14 .................... 428,625
500,000 Warner Chilcott Corp.
8.750%, due 02/01/15 .................... 491,250
1,000,000 Watson Pharmaceuticals, Inc. (P)
1.750%, due 03/15/23 .................... 973,750
------------
13,266,875
------------
HOTELS - 0.03%
50,000 Felcor Lodging L.P., REIT (G)
4.443%, due 12/01/11 .................... 28,500
------------
INVESTMENT MANAGEMENT - 0.19%
150,000 Nuveen Investments, Inc.
5.000%, due 09/15/10 .................... 121,875
100,000 Nuveen Investments, Inc. (C)
10.500%, due 11/15/15 ................... 50,500
------------
172,375
------------
LEISURE & ENTERTAINMENT - 0.60%
250,000 Speedway Motorsports, Inc.
6.750%, due 06/01/13 .................... 218,750
350,000 Vail Resorts, Inc.
6.750%, due 02/15/14 .................... 315,000
------------
533,750
------------
MEDIA - BROADCASTING - 1.44%
250,000 Allbritton Communications Co.
7.750%, due 12/15/12 .................... 113,750
500,000 Lamar Advertising Co.,
Series B (P)
2.875%, due 12/31/10 .................... 457,500
375,000 Lamar Media Corp.
7.250%, due 01/01/13 .................... 335,625
500,000 Lamar Media Corp., Series C
6.625%, due 08/15/15 .................... 382,500
------------
1,289,375
------------
MEDIA - CABLE - 10.03%
1,000,000 Cablevision Systems Corp., Series B
8.000%, due 04/15/12 .................... 995,000
250,000 Comcast Cable
Communications LLC
6.875%, due 06/15/09 .................... 251,320
1,000,000 COX Communications, Inc.
4.625%, due 01/15/10 .................... 999,787
250,000 COX Communications, Inc.
7.125%, due 10/01/12 .................... 252,709
250,000 CSC Holdings, Inc./
United States, Series B
7.625%, due 04/01/11 .................... 250,000
1,000,000 DirecTV Holdings LLC/
DirecTV Financing Co.
8.375%, due 03/15/13 .................... 1,015,000
250,000 DISH DBS Corp.
6.375%, due 10/01/11 .................... 242,500
1,250,000 DISH DBS Corp.
6.625%, due 10/01/14 .................... 1,162,500
400,000 Mediacom Broadband LLC/
Mediacom Broadband Corp.
8.500%, due 10/15/15 .................... 376,000
250,000 Mediacom LLC/
Mediacom Capital Corp.
9.500%, due 01/15/13 .................... 245,000
1,500,000 Viacom, Inc. (G)
1.670%, due 06/16/09 .................... 1,494,135
750,000 Videotron Ltee (D)
6.875%, due 01/15/14 .................... 728,437
250,000 Videotron Ltee (D)
9.125%, due 04/15/18 .................... 259,688
700,000 Virgin Media Finance PLC (D)
9.125%, due 08/15/16 .................... 689,500
------------
8,961,576
------------
MEDIA - DIVERSIFIED & SERVICES - 4.26%
400,000 Hughes Network Systems LLC/
HNS Finance Corp.
9.500%, due 04/15/14 .................... 374,000
300,000 Intelsat Jackson Holdings, Ltd. (D)
11.250%, due 06/15/16 ................... 306,750
850,000 Intelsat Subsidiary
Holding Co., Ltd. (C)(D)
8.500%, due 01/15/13 .................... 841,500
500,000 Intelsat Subsidiary
Holding Co., Ltd. (C)(D)
8.875%, due 01/15/15 .................... 492,500
250,000 Nielsen Finance LLC/
Nielsen Finance Co. (C)
11.625%, due 02/01/14 ................... 247,500
1,000,000 Nielsen Finance LLC/
Nielsen Finance Co.
10.000%, due 08/01/14 ................... 940,000
650,000 Telesat Canada/Telesat LLC (C)
11.000%, due 11/01/15 ................... 604,500
------------
3,806,750
------------
METALS AND MINING - 2.24%
450,000 Arch Western Finance LLC
6.750%, due 07/01/13 .................... 392,625
250,000 Consol Energy, Inc.
7.875%, due 03/01/12 .................... 251,250
250,000 Freeport-McMoRan
Copper & Gold, Inc.
8.375%, due 04/01/17 .................... 245,000
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
28
================================================================================
HIGH INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- -------------
CORPORATE NOTES AND BONDS (CONTINUED)
- ------------------------------------------------------------------------------
METALS AND MINING (CONTINUED)
$ 500,000 Massey Energy Co.
6.875%, due 12/15/13 .................... $ 426,250
700,000 Peabody Energy Corp.
7.375%, due 11/01/16 .................... 684,250
------------
1,999,375
------------
NON FOOD & DRUG RETAILERS - 0.82%
500,000 Pantry, Inc./The
7.750%, due 02/15/14 .................... 435,000
300,000 Sally Holdings LLC/
Sally Capital, Inc.
9.250%, due 11/15/14 .................... 300,000
------------
735,000
------------
OIL & GAS - 6.02%
250,000 Basic Energy Services, Inc.
7.125%, due 04/15/16 .................... 170,000
616,000 Chesapeake Energy Corp.
6.875%, due 01/15/16 .................... 547,470
250,000 Chesapeake Energy Corp.
6.500%, due 08/15/17 .................... 214,375
150,000 Cimarex Energy Co.
7.125%, due 05/01/17 .................... 132,750
600,000 Complete Production Services, Inc.
8.000%, due 12/15/16 .................... 444,000
250,000 Denbury Resources, Inc.
7.500%, due 04/01/13 .................... 237,500
500,000 Denbury Resources, Inc.
9.750%, due 03/01/16 .................... 507,500
200,000 Encore Acquisition Co.
6.000%, due 07/15/15 .................... 163,000
365,000 EXCO Resources, Inc.
7.250%, due 01/15/11 .................... 308,425
350,000 Helix Energy Solutions
Group, Inc. (C)
9.500%, due 01/15/16 .................... 248,500
250,000 Key Energy Services, Inc.
8.375%, due 12/01/14 .................... 205,000
250,000 Mariner Energy, Inc.
8.000%, due 05/15/17 .................... 181,250
500,000 Petroplus Finance, Ltd. (C)(D)
7.000%, due 05/01/17 .................... 402,500
500,000 Pioneer Natural Resources Co.
6.650%, due 03/15/17 .................... 427,824
500,000 Plains Exploration & Production Co.
10.000%, due 03/01/16 .......... 487,500
250,000 Range Resources Corp.
6.375%, due 03/15/15 .................... 233,750
500,000 Range Resources Corp.
7.250%, due 05/01/18 .................... 470,000
------------
5,381,344
------------
PACKAGING - 2.36%
500,000 Ball Corp.
6.875%, due 12/15/12 .................... 500,000
500,000 Ball Corp.
6.625%, due 03/15/18 .................... 482,500
375,000 BWAY Corp.
10.000%, due 10/15/10 .......... 380,625
250,000 Crown Americas LLC/
Crown Americas Capital Corp.
7.625%, due 11/15/13 .................... 252,500
250,000 Greif, Inc.
6.750%, due 02/01/17 .................... 231,250
250,000 Owens-Illinois, Inc.
7.500%, due 05/15/10 .................... 257,500
------------
2,104,375
------------
SUPPORT SERVICES - 5.31%
1,000,000 ARAMARK Corp.
8.500%, due 02/01/15 .................... 955,000
100,000 Cardtronics, Inc.
9.250%, due 08/15/13 .................... 72,500
300,000 Corrections Corp. of America
7.500%, due 05/01/11 .................... 300,000
200,000 Corrections Corp. of America
6.250%, due 03/15/13 .................... 192,500
350,000 Education Management LLC/
Education Management
Finance Corp.
10.250%, due 06/01/16 ................... 336,000
500,000 FTI Consulting, Inc.
7.750%, due 10/01/16 .................... 507,500
250,000 Iron Mountain, Inc.
8.625%, due 04/01/13 .................... 250,938
700,000 Iron Mountain, Inc.
7.750%, due 01/15/15 .................... 701,750
350,000 Mac-Gray Corp.
7.625%, due 08/15/15 .................... 331,625
500,000 United Rentals North America, Inc.
6.500%, due 02/15/12 .................... 447,500
750,000 West Corp.
9.500%, due 10/15/14 .................... 650,625
------------
4,745,938
------------
TECHNOLOGY - 4.07%
500,000 Celestica, Inc. (D)
7.875%, due 07/01/11 .................... 495,000
1,000,000 Celestica, Inc. (D)
7.625%, due 07/01/13 .................... 950,000
250,000 Flextronics International,
Ltd. (D)
6.500%, due 05/15/13 .................... 234,375
1,100,000 Sungard Data Systems, Inc.
9.125%, due 08/15/13 .................... 1,050,500
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
29
================================================================================
HIGH INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- -------------
CORPORATE NOTES AND BONDS (CONTINUED)
- ------------------------------------------------------------------------------
TECHNOLOGY (CONTINUED)
$ 500,000 Sungard Data Systems, Inc. (C)
10.625%, due 05/15/15.................... $ 478,750
500,000 Syniverse Technologies, Inc., Series B
7.750%, due 08/15/13..................... 425,000
------------
3,633,625
------------
TELECOMMUNICATIONS - 9.53%
1,000,000 CC Holdings GS V LLC/
Crown Castle GS III Corp. (C)
7.750%, due 05/01/17..................... 1,010,000
400,000 Centennial Communications
Corp. (G)
6.958%, due 01/01/13..................... 401,000
250,000 Centennial Communications Corp.
10.000%, due 01/01/13.......... 265,000
250,000 Cincinnati Bell, Inc.
8.375%, due 01/15/14..................... 246,875
250,000 Cincinnati Bell Telephone Co. LLC
6.300%, due 12/01/28..................... 178,750
500,000 Crown Castle International Corp.
9.000%, due 01/15/15..................... 510,000
700,000 Frontier Communications Corp.
6.625%, due 03/15/15..................... 640,500
500,000 Nordic Telephone Co.
Holdings ApS (C)(D)
8.875%, due 05/01/16..................... 482,500
385,000 Qwest Capital Funding, Inc.
7.900%, due 08/15/10..................... 383,556
500,000 Qwest Capital Funding, Inc.
7.250%, due 02/15/11..................... 488,750
750,000 Qwest Corp.
7.875%, due 09/01/11..................... 744,375
500,000 SBA Communications
Corp. (C)(P)
1.875%, due 05/01/13..................... 420,000
1,000,000 Sprint Capital Corp.
7.625%, due 01/30/11..................... 963,750
750,000 Time Warner Telecom Holdings, Inc.
9.250%, due 02/15/14..................... 751,875
500,000 Valor Telecommunications
Enterprises Finance Corp.
7.750%, due 02/15/15..................... 492,500
300,000 Windstream Corp.
8.625%, due 08/01/16..................... 298,500
250,000 Windstream Corp.
7.000%, due 03/15/19..................... 235,000
------------
8,512,931
------------
TRANSPORTATION - 0.97%
250,000 Bristow Group, Inc.
7.500%, due 09/15/17..................... 202,500
300,000 Gulfmark Offshore, Inc.
7.750%, due 07/15/14..................... 252,000
500,000 Hornbeck Offshore Services, Inc.,
Series B
6.125%, due 12/01/14..................... 412,500
------------
867,000
------------
UTILITIES - 7.93%
1,000,000 Edison Mission Energy
7.200%, due 05/15/19..................... 727,500
250,000 El Paso Corp.
7.000%, due 06/15/17..................... 224,609
1,000,000 El Paso Corp.
7.250%, due 06/01/18..................... 912,500
350,000 Energy Future Holdings Corp.
10.875%, due 11/01/17.......... 238,875
400,000 Ferrellgas Partners L.P./
Ferrellgas Partners Finance Corp.
8.750%, due 06/15/12..................... 366,000
1,000,000 Inergy L.P./Inergy Finance Corp.
6.875%, due 12/15/14..................... 940,000
500,000 MarkWest Energy Partners L.P./
MarkWest Energy Finance
Corp., Series B
8.750%, due 04/15/18..................... 415,000
730,000 Mirant Americas Generation LLC
8.300%, due 05/01/11..................... 730,000
750,000 NRG Energy, Inc.
7.375%, due 02/01/16..................... 721,875
250,000 NRG Energy, Inc.
7.375%, due 01/15/17..................... 238,750
500,000 Suburban Propane Partners L.P./
Suburban Energy Finance Corp.
6.875%, due 12/15/13..................... 486,250
200,000 Texas Competitive Electric
Holdings Co. LLC, Series A
10.250%, due 11/01/15.................... 113,500
200,000 Williams Cos., Inc./The
7.125%, due 09/01/11..................... 202,000
500,000 Williams Cos., Inc./The
7.625%, due 07/15/19..................... 492,500
300,000 Williams Partners L.P./
Williams Partners Finance Corp.
7.250%, due 02/01/17..................... 271,500
------------
7,080,859
------------
TOTAL CORPORATE NOTES AND BONDS
(Cost $84,140,850) ...................... 83,239,775
CERTIFICATE OF DEPOSIT - 2.14%
- ------------------------------------------------------------------------------
1,908,503 State Street Eurodollar
0.010%, due 05/01/09..................... 1,908,503
------------
TOTAL CERTIFICATE OF DEPOSIT
(Cost $1,908,503) ....................... 1,908,503
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
30
================================================================================
HIGH INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ -------------
INVESTMENT COMPANY - 4.46%
- ------------------------------------------------------------------------------
3,984,283 SSgA Prime Money Market
Fund (N)................................. $ 3,984,283
------------
TOTAL INVESTMENT COMPANY
(Cost $3,984,283) ....................... 3,984,283
TOTAL INVESTMENTS - 99.79%
- ------------------------------------------------------------------------------
(Cost $90,033,636**).................................... 89,132,561
NET OTHER ASSETS AND LIABILITIES - 0.21%
- ------------------------------------------------------------------------------
188,335
TOTAL NET ASSETS - 100.00%
- ------------------------------------------------------------------------------
$ 89,320,896
- --------------------------------------------------------------------------------
** Aggregate cost for Federal tax purposes was $90,050,782.
(B) Represents a security with a specified coupon until a predetermined date,
at which time the stated rate is adjusted to a new contract rate.
(C) Security sold within terms of a private placement memorandum exempt from
registration under section 144A of the Securities Act of 1933, as amended,
and may be sold only to dealers in that program or other "qualified
institutional investors." The securities have been determined to be liquid
under guidelines established by the Board of Trustees.
(D) Notes and bonds, issued by foreign entities, denominated in U.S. dollars.
The aggregate of these securities is 6.59% of total net assets.
(G) Floating rate or variable rate note. Rate shown is as of April 30, 2009.
(H) Security purchased on a delayed delivery or when-issued basis. Rate shown
is at issue date. (N) Security segregated for forward or when-issued
purchase commitments outstanding as of April 30, 2009.
(P) Convertible.
PLC Public Limited Company.
REIT Real Estate Investment Trust.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from
the industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
31
================================================================================
DIVERSIFIED INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF PORTFOLIO ALLOCATION]
Common Stocks 39%
Mortgage Backed 21%
Corporate Notes and Bonds 21%
U.S. Government and Agency Obligations 9%
Cash and Other Net Assets 3%
Commercial Mortgage Backed 3%
Private Label Mortgage Backed 2%
Asset Backed 2%
[END CHART]
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS - 39.29%
- --------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 2.62%
5,500 Genuine Parts Co. ............................. $ 186,780
23,000 Home Depot, Inc. .............................. 605,360
13,000 McDonald's Corp. .............................. 692,770
8,500 McGraw-Hill Cos., Inc./The .................... 256,275
7,500 Snap-On, Inc. ................................. 254,400
3,500 VF Corp. ...................................... 207,445
-----------
2,203,030
-----------
CONSUMER STAPLES - 5.78%
35,000 Altria Group, Inc. ............................ 571,550
12,000 Avon Products, Inc. ........................... 273,120
20,500 Coca-Cola Co./The ............................. 882,525
5,000 HJ Heinz Co. .................................. 172,100
9,300 Kimberly-Clark Corp. .......................... 457,002
17,851 Kraft Foods, Inc., Class A .................... 417,714
10,000 PepsiCo, Inc./NC .............................. 497,600
31,000 Philip Morris International, Inc. ............. 1,122,200
20,500 Sysco Corp. ................................... 478,265
-----------
4,872,076
-----------
ENERGY - 3.88%
7,500 BP PLC, ADR ................................... 318,450
25,800 Chevron Corp. ................................. 1,705,380
17,000 ConocoPhillips ................................ 697,000
12,500 Marathon Oil Corp. ............................ 371,250
12,200 Williams Cos., Inc./The ....................... 172,020
-----------
3,264,100
-----------
FINANCIALS - 4.04%
23,500 Bank of New York Mellon
Corp./The ..................................... 598,780
4,500 BB&T Corp. .................................... 105,030
16,500 Marsh & McLennan Cos., Inc. ................... 347,985
14,500 Morgan Stanley ................................ 342,780
13,800 NYSE Euronext ................................. 319,746
2,700 Rayonier, Inc., REIT .......................... 104,274
8,000 Travelers Cos., Inc./The ...................... 329,120
15,000 US Banccorp ................................... 273,300
49,000 Wells Fargo & Co. ............................. 980,490
-----------
3,401,505
-----------
HEALTH CARE - 5.33%
2,000 Abbott Laboratories ........................... 83,700
27,000 Bristol-Myers Squibb Co. ...................... 518,400
6,000 Eli Lilly & Co. ............................... 197,520
29,200 Johnson & Johnson ............................. 1,528,912
29,000 Merck & Co., Inc./NJ .......................... 702,960
108,962 Pfizer, Inc. .................................. 1,455,732
-----------
4,487,224
-----------
INDUSTRIALS - 6.96%
12,000 3M Co. ........................................ 691,200
13,000 Boeing Co./The ................................ 520,650
6,800 Deere & Co. ................................... 280,568
13,000 Emerson Electric Co. .......................... 442,520
94,000 General Electric Co. .......................... 1,189,100
10,000 Honeywell International, Inc. ................. 312,100
10,000 Norfolk Southern Corp. ........................ 356,800
6,500 Northrop Grumman Corp. ....................... 314,275
4,500 Raytheon Co. .................................. 203,535
14,500 Tyco International, Ltd. ...................... 344,520
6,100 United Parcel Service, Inc.,
Class B ....................................... 319,274
11,400 United Technologies Corp. ..................... 556,776
12,200 Waste Management, Inc. ........................ 325,374
-----------
5,856,692
-----------
INFORMATION TECHNOLOGY - 2.48%
11,000 Automatic Data Processing, Inc. ............... 387,200
71,000 Intel Corp. ................................... 1,120,380
18,000 Maxim Integrated Products, Inc. ............... 243,900
12,500 Paychex, Inc. ................................. 337,625
-----------
2,089,105
-----------
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
32
================================================================================
DIVERSIFIED INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------------------------
MATERIALS - 1.97%
6,500 Air Products & Chemicals,
Inc. .......................................... $ 428,350
31,000 EI Du Pont de Nemours &
Co. ........................................... 864,900
9,000 Nucor Corp. ................................... 366,210
-----------
1,659,460
-----------
TELECOMMUNICATION SERVICES - 3.39%
67,092 AT&T, Inc. .................................... 1,718,897
37,500 Verizon Communications,
Inc. .......................................... 1,137,750
-----------
2,856,647
-----------
UTILITIES - 2.84%
8,200 Consolidated Edison, Inc. ..................... 304,466
26,000 Duke Energy Corp. ............................. 359,060
8,500 Exelon Corp. .................................. 392,105
9,000 FirstEnergy Corp. ............................. 368,100
8,500 Progress Energy, Inc. ......................... 290,020
11,200 Public Service Enterprise
Group, Inc. ................................... 334,208
12,000 Southern Co./The .............................. 346,560
-----------
2,394,519
-----------
TOTAL COMMON STOCKS
(Cost $40,078,797) ............................ 33,084,358
Par Value
- ---------
ASSET BACKED - 1.69%
- --------------------------------------------------------------------------------------------------
$ 98,971 ABSC Long Beach Home Equity
Loan Trust, Series 2000-LB1,
Class AF5 (M)
8.550%, due 09/21/30 .......................... 93,688
355,161 Ameriquest Mortgage Securities, Inc.,
Series 2004-FR1, Class M2 (M)
5.207%, due 05/25/34 .......................... 87,107
525,000 Carmax Auto Owner Trust,
Series 2007-2, Class B
5.370%, due 03/15/13 .......................... 380,422
465,000 Chase Issuance Trust,
Series 2007-A17, Class A
5.120%, due 10/15/14 .......................... 479,698
312,924 CIT Group Home Equity Loan Trust,
Series 2002-2, Class BF (M)
6.830%, due 06/25/33 .......................... 8,656
320,000 GMAC Mortgage Corp. Loan Trust,
Series 2004-HE2, Class M1 (G)
3.950%, due 10/25/33 .......................... 236,982
171,912 Green Tree Financial Corp.,
Series 1998-2, Class A6 (G)
6.810%, due 12/01/27 .......................... 126,063
160,83222 Wells Fargo Home Equity Trust,
Series 2004-2, Class M8A (C)(G)
3.438%, due 05/25/34 ......................... 12,490
-----------
TOTAL ASSET BACKED
(Cost $2,413,605) ............................. 1,425,106
COMMERCIAL MORTGAGE BACKED - 3.25%
- --------------------------------------------------------------------------------------------------
67,076 Bear Stearns Commercial Mortgage
Securities, Series 2001-TOP4,
Class A1
5.060%, due 11/15/16 .......................... 67,395
445,000 Bear Stearns Commercial Mortgage
Securities, Series 2003-T10,
Class E (C)(G)
5.540%, due 03/13/40 .......................... 185,633
350,000 Bear Stearns Commercial Mortgage
Securities, Series 2004-T16,
Class A6 (G)
4.750%, due 02/13/46 .......................... 303,024
200,000 Bear Stearns Commercial Mortgage
Securities, Series 2005-T20,
Class F (C)(G)
5.150%, due 10/12/42 .......................... 47,080
684,477 GMAC Commercial Mortgage
Securities, Inc., Series 2000-C1,
Class A2 (G)
7.724%, due 03/15/33 .......................... 689,463
375,000 Government National Mortgage
Association, Series 2004-43,
Class C (G)
5.008%, due 12/16/25 .......................... 393,639
400,000 Greenwich Capital Commercial
Funding Corp., Series 2004-GG1,
Class A7 (G)
5.317%, due 06/10/36 .......................... 368,840
400,000 LB-UBS Commercial Mortgage
Trust, Series 2004-C8,
Class A6 (G)
4.799%, due 12/15/29 .......................... 300,458
350,000 Morgan Stanley Capital I,
Series 2004-HQ4, Class A7
4.970%, due 04/14/40 .......................... 311,320
677,000 Multi Security Asset Trust,
Series 2005-RR4A, Class H (C)(G)
5.880%, due 11/28/35 .......................... 56,286
200,000 Multi Security Asset Trust,
Series 2005-RR4A, Class J (C)(G)
5.880%, due 11/28/35 .......................... 15,676
-----------
TOTAL COMMERCIAL MORTGAGE BACKED
(Cost $4,114,224) ............................. 2,738,814
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
33
================================================================================
DIVERSIFIED INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- --------------
PRIVATE LABEL MORTGAGE BACKED - 1.87%
- --------------------------------------------------------------------------------------------------
$ 337,300 Banc of America Alternative Loan
Trust, Series 2005-12, Class 3CB1
6.000%, due 01/25/36 .......................... $ 234,529
1,527,062 Banc of America Alternative Loan
Trust, Series 2006-3, Class 2CB1
6.000%, due 04/25/36 .......................... 985,433
693,208 Banc of America Alternative Loan
Trust, Series 2006-4, Class 5CB1
6.500%, due 05/25/46 .......................... 353,103
-----------
TOTAL PRIVATE LABEL MORTGAGE BACKED
(Cost $2,552,172) ............................. 1,573,065
CORPORATE NOTES AND BONDS - 20.56%
- --------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 1.51%
750,000 American Association of Retired
Persons (C)
7.500%, due 05/01/31 .......................... 804,973
325,000 Erac USA Finance Co. (C)
6.700%, due 06/01/34 .......................... 204,502
400,000 Royal Caribbean Cruises, Ltd. (D)
7.250%, due 06/15/16 .......................... 266,000
-----------
1,275,475
-----------
CONSUMER STAPLES - 0.53%
475,000 Kraft Foods, Inc.
6.500%, due 11/01/31 .......................... 442,710
-----------
ENERGY - 1.13%
500,000 Chesapeake Energy Corp.
6.375%, due 06/15/15 .......................... 441,250
150,000 Hess Corp.
7.875%, due 10/01/29 .......................... 142,355
400,000 Transocean, Inc.
7.500%, due 04/15/31 .......................... 367,888
-----------
951,493
-----------
FINANCE - 5.08%
500,000 American General Finance
Corp., Series H
4.625%, due 09/01/10 .......................... 299,268
250,000 Bear Stearns Cos. LLC/The
7.250%, due 02/01/18 .......................... 255,304
160,000 CIT Group, Inc.
7.625%, due 11/30/12 .......................... 99,233
210,000 General Electric Global Insurance
Holding Corp.
7.000%, due 02/15/26 .......................... 164,212
205,000 General Electric Global Insurance
Holding Corp.
7.750%, due 06/15/30 .......................... 165,570
470,000 Goldman Sachs Group, Inc./The
6.650%, due 05/15/09 .......................... 470,772
410,000 Lehman Brothers Holdings, Inc. (E)
5.750%, due 01/03/17 .......................... 41
315,000 Merrill Lynch & Co., Inc.
6.150%, due 04/25/13 .......................... 289,611
600,000 National Rural Utilities
Cooperative Finance Corp., Series C
7.250%, due 03/01/12 .......................... 634,402
760,000 Nissan Motor Acceptance Corp. (C)
5.625%, due 03/14/11 .......................... 692,494
355,000 SLM Corp.
5.125%, due 08/27/12 .......................... 245,025
120,000 Textron Financial Corp.
6.000%, due 11/20/09 .......................... 114,638
500,000 US Bank NA/Cincinnati, OH
6.300%, due 02/04/14 .......................... 519,978
330,000 Wells Fargo & Co.
5.250%, due 10/23/12 .......................... 329,895
-----------
4,280,443
-----------
FORESTRY/PAPER - 0.16%
175,000 Westvaco Corp.
8.200%, due 01/15/30 .......................... 133,734
-----------
HEALTH CARE - 2.27%
1,050,000 Amgen, Inc.
5.850%, due 06/01/17 .......................... 1,086,087
300,000 Eli Lilly & Co.
6.570%, due 01/01/16 .......................... 311,252
195,000 Genentech, Inc.
5.250%, due 07/15/35 .......................... 164,501
220,000 Merck & Co., Inc./NJ
5.750%, due 11/15/36 .......................... 201,596
150,000 Wyeth
6.500%, due 02/01/34 .......................... 151,831
-----------
1,915,267
-----------
INDUSTRIALS - 1.06%
150,000 Boeing Co./The
8.625%, due 11/15/31 .......................... 178,388
130,000 DR Horton, Inc.
5.250%, due 02/15/15 .......................... 107,900
190,000 GMAC LLC
7.250%, due 03/02/11 .......................... 155,801
150,000 Waste Management, Inc.
7.125%, due 12/15/17 .......................... 142,639
310,000 WM Wrigley Jr. Co.
4.300%, due 07/15/10 .......................... 305,350
-----------
890,078
-----------
MEDIA - 0.95%
415,000 Comcast Cable Communications
Holdings, Inc.
9.455%, due 11/15/22 .......................... 482,272
315,000 Rogers Communications, Inc. (D)
6.250%, due 06/15/13 .......................... 321,350
-----------
803,622
-----------
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
34
================================================================================
DIVERSIFIED INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- --------------
CORPORATE NOTES AND BONDS (CONTINUED)
- --------------------------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS - 1.05%
$ 335,000 HCP, Inc.
6.700%, due 01/30/18 .......................... $ 262,791
600,000 Nationwide Health Properties,
Inc., Series D
8.250%, due 07/01/12 .......................... 510,390
140,000 Simon Property Group L.P.
5.875%, due 03/01/17 .......................... 111,912
-----------
885,093
-----------
TELECOMMUNICATIONS - 0.49%
240,000 Cisco Systems, Inc.
5.500%, due 02/22/16 .......................... 253,964
190,000 Sprint Nextel Corp.
6.000%, due 12/01/16 .......................... 157,700
-----------
411,664
-----------
TRANSPORTATION - 0.78%
175,000 Burlington Northern Santa
Fe Corp.
8.125%, due 04/15/20 .......................... 192,685
239,000 Norfolk Southern Corp.
5.590%, due 05/17/25 .......................... 203,810
260,000 Norfolk Southern Corp.
7.050%, due 05/01/37 .......................... 256,807
-----------
653,302
-----------
UTILITIES - 5.55%
500,000 Energy East Corp.
8.050%, due 11/15/10 .......................... 515,655
310,000 Illinois Power Co.
7.500%, due 06/15/09 .......................... 310,567
1,000,000 MidAmerican Energy Co.
5.650%, due 07/15/12 .......................... 1,028,067
400,000 Nevada Power Co., Series R
6.750%, due 07/01/37 .......................... 350,224
175,000 Pacific Gas & Electric Co.
6.050%, due 03/01/34 .......................... 175,609
350,000 Progress Energy, Inc.
7.750%, due 03/01/31 .......................... 368,900
126,000 Sierra Pacific Power Co., Series M
6.000%, due 05/15/16 .......................... 120,954
500,000 Southwestern Electric Power
Co., Series E
5.550%, due 01/15/17 .......................... 460,895
600,000 Westar Energy, Inc.
6.000%, due 07/01/14 .......................... 601,496
750,000 Wisconsin Electric Power Co.
6.500%, due 06/01/28 .......................... 737,732
-----------
4,670,099
-----------
TOTAL CORPORATE NOTES AND BONDS
(Cost $19,402,864) ............................ 17,312,980
MORTGAGE BACKED - 20.98%
- --------------------------------------------------------------------------------------------------
FEDERAL HOME LOAN MORTGAGE
CORP. - 2.31%
9,249 8.000%, due 06/01/30
Pool # C01005 ................................. 10,133
167,663 6.500%, due 01/01/32
Pool # C62333 ................................. 179,586
1,327,640 5.000%, due 07/01/33
Pool # A11325 ................................. 1,369,257
96,538 6.000%, due 10/01/34
Pool # A28439 ................................. 101,405
81,203 6.000%, due 10/01/34
Pool # A28598 ................................. 85,296
113,074 5.000%, due 04/01/35
Pool # A32315 ................................. 116,442
80,940 5.000%, due 04/01/35
Pool # A32316 ................................. 83,350
-----------
1,945,469
-----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 18.52%
241,712 4.000%, due 04/01/15
Pool # 255719 ................................. 245,528
307,152 5.500%, due 04/01/16
Pool # 745444 ................................. 318,774
50,067 6.000%, due 05/01/16
Pool # 582558 ................................. 52,851
518,295 5.000%, due 12/01/17
Pool # 672243 ................................. 540,707
492,052 5.000%, due 05/01/20
Pool # 813965 ................................. 510,715
748,319 4.500%, due 09/01/20
Pool # 835465 ................................. 771,587
87,468 6.000%, due 05/01/21
Pool # 253847 ................................. 92,377
18,343 7.000%, due 12/01/29
Pool # 762813 ................................. 19,889
59,986 7.000%, due 11/01/31
Pool # 607515 ................................. 64,727
49,998 7.000%, due 05/01/32
Pool # 644591 ................................. 53,950
354,755 6.500%, due 06/01/32
Pool # 545691 ................................. 380,092
525,099 5.500%, due 10/01/33
Pool # 254904 ................................. 546,318
20,063 5.000%, due 05/01/34
Pool # 782214 ................................. 20,692
456,870 5.000%, due 06/01/34
Pool # 255230 ................................. 471,191
11,021 7.000%, due 07/01/34
Pool # 792636 ................................. 11,846
164,176 5.500%, due 08/01/34
Pool # 793647 ................................. 170,682
335,682 5.500%, due 03/01/35
Pool # 810075 ................................. 348,670
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
35
================================================================================
DIVERSIFIED INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Par Value Value (Note 2)
- --------- --------------
MORTGAGE BACKED (CONTINUED)
- --------------------------------------------------------------------------------------------------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION (CONTINUED)
$ 813,469 5.500%, due 03/01/35
Pool # 815976 ................................. $ 844,943
456,351 5.000%, due 08/01/35
Pool # 829670 ................................. 470,371
351,120 5.000%, due 09/01/35
Pool # 820347 ................................. 361,907
380,925 5.000%, due 09/01/35
Pool # 835699 ................................. 392,628
695,323 5.000%, due 10/01/35
Pool # 797669 ................................. 716,685
487,620 5.000%, due 11/01/35
Pool # 844504 ................................. 502,600
523,073 5.000%, due 11/01/35
Pool # 844809 ................................. 539,142
507,075 5.000%, due 12/01/35
Pool # 850561 ................................. 522,653
168,630 5.500%, due 02/01/36
Pool # 851330 ................................. 175,155
636,538 5.500%, due 09/01/36
Pool # 831820 ................................. 660,370
638,912 6.000%, due 09/01/36
Pool # 831741 ................................. 669,123
148,773 5.500%, due 10/01/36
Pool # 896340 ................................. 154,343
687,593 5.500%, due 10/01/36
Pool # 901723 ................................. 713,336
630,105 6.000%, due 11/01/36
Pool # 902510 ................................. 666,291
724,751 5.500%, due 12/01/36
Pool # 902853 ................................. 751,886
662,204 5.500%, due 12/01/36
Pool # 903059 ................................. 686,997
635,936 5.500%, due 12/01/36
Pool # 907512 ................................. 659,746
755,139 5.500%, due 12/01/36
Pool # 907635 ................................. 783,412
668,514 6.000%, due 12/01/36
Pool # 903002 ................................. 700,124
-----------
15,592,308
-----------
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 0.15%
11,457 8.000%, due 10/20/15
Pool # 002995 ................................. 12,237
62,263 6.500%, due 02/20/29
Pool # 002714 ................................. 66,521
44,937 6.500%, due 04/20/31
Pool # 003068 ................................. 47,961
-----------
126,719
-----------
TOTAL MORTGAGE BACKED
(Cost $16,917,766) ............................ 17,664,496
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 8.93%
- --------------------------------------------------------------------------------------------------
FEDERAL FARM CREDIT BANK - 1.33%
1,000,000 5.875%, due 10/03/16 .......................... 1,119,849
-----------
FEDERAL NATIONAL MORTGAGE
ASSOCIATION - 0.62%
500,000 5.250%, due 08/01/12 .......................... 521,265
-----------
U.S. TREASURY BONDS - 1.35%
860,000 6.625%, due 02/15/27 .......................... 1,140,307
-----------
U.S. TREASURY NOTES - 5.63%
30,000 4.500%, due 11/15/10 .......................... 31,728
225,000 0.875%, due 02/28/11 .......................... 225,027
320,000 4.875%, due 04/30/11 .......................... 345,000
2,100,000 4.625%, due 12/31/11 .......................... 2,286,375
575,000 4.250%, due 08/15/14 .......................... 637,666
60,000 4.250%, due 08/15/15 .......................... 66,661
1,025,000 4.500%, due 05/15/17 .......................... 1,144,156
-----------
4,736,613
-----------
TOTAL U.S. GOVERNMENT AND AGENCY
OBLIGATIONS
(Cost $6,885,266) .............................. 7,518,034
Shares
- ------
INVESTMENT COMPANY - 2.72%
- --------------------------------------------------------------------------------------------------
2,290,296 SSgA Prime Money
Market Fund ................................... 2,290,296
-----------
TOTAL INVESTMENT COMPANY
(Cost $2,290,296) ............................. 2,290,296
TOTAL INVESTMENTS - 99.29%
- --------------------------------------------------------------------------------------------------
(Cost $94,654,990**) ......................................... 83,607,149
NET OTHER ASSETS AND LIABILITIES - 0.71%
- --------------------------------------------------------------------------------------------------
600,712
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$84,207,861
- --------------------------------------------------------------------------------
** Aggregate cost for Federal tax purposes was $94,850,528.
(C) Security sold within terms of a private placement memorandum exempt from
registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional investors." The securities have been determined
to be liquid under guidelines established by the Board of Trustees.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
36
================================================================================
DIVERSIFIED INCOME FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
(D) Notes and bonds, issued by foreign entities, denominated in U.S. dollars.
The aggregate of these securities is 0.70% of total net assets.
(E) In Default. Issuer is bankrupt.
(G) Floating rate or variable rate note. Rate shown is as of April 30, 2009.
(M) Stated interest rate is contingent upon sufficient collateral market
value. If collateral market value falls below a stated level, the issuer
will either initiate a clean-up call or increase the stated interest
rate.
ADR American Depositary Receipt.
PLC Public Limited Company.
REIT Real Estate Investment Trust.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from
the industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
37
================================================================================
LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF PORTFOLIO ALLOCATION]
Financials 22%
Energy 17%
Health Care 13%
Consumer Staples 9%
Consumer Discretionary 8%
Industrials 8%
Telecommunication Services 6%
Utilities 6%
Cash and Other Net Assets 4%
Information Technology 4%
Materials 3%
[END CHART]
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS - 96.09%
- --------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 7.88%
48,186 Comcast Corp., Class A ........................ $ 744,956
23,400 Home Depot, Inc. .............................. 615,888
28,600 Johnson Controls, Inc. ........................ 543,686
17,800 Kohl's Corp.* ................................. 807,230
47,000 Lowe's Cos., Inc. ............................. 1,010,500
18,500 Omnicom Group, Inc. ........................... 582,195
15,000 Phillips-Van Heusen Corp. ..................... 435,450
19,800 Snap-On, Inc. ................................. 671,616
33,000 Staples, Inc. ................................. 680,460
22,000 Target Corp. .................................. 907,720
16,855 Time Warner Cable, Inc. ....................... 543,237
33,133 Time Warner, Inc. ............................. 723,293
47,700 Walt Disney Co./The ........................... 1,044,630
------------
9,310,861
------------
CONSUMER STAPLES - 8.57%
21,400 Altria Group, Inc. ............................ 349,462
18,200 Archer-Daniels-Midland Co. .................... 448,084
20,600 Coca-Cola Co./The ............................. 886,830
6,900 Costco Wholesale Corp. ........................ 335,340
26,900 CVS Caremark Corp. ............................ 854,882
12,400 General Mills, Inc. ........................... 628,556
10,100 HJ Heinz Co. .................................. 347,642
7,700 Kellogg Co. ................................... 324,247
46,397 Kraft Foods, Inc., Class A .................... 1,085,690
8,800 Molson Coors Brewing Co.,
Class B ....................................... 336,600
58,700 Procter & Gamble Co./The ..................... 2,902,128
32,100 Wal-Mart Stores, Inc. ......................... 1,617,840
------------
10,117,301
------------
ENERGY - 16.80%
17,300 Anadarko Petroleum Corp. ..................... 744,938
17,400 Apache Corp. .................................. 1,267,764
67,966 Chevron Corp. ................................. 4,492,553
49,800 ConocoPhillips ................................ 2,041,800
19,400 Devon Energy Corp. ............................ 1,005,890
5,900 EOG Resources, Inc. ........................... 374,532
118,800 Exxon Mobil Corp. ............................. 7,920,396
33,300 Marathon Oil Corp. ............................ 989,010
13,300 Valero Energy Corp. ........................... 263,872
21,500 XTO Energy, Inc. .............................. 745,190
------------
19,845,945
------------
FINANCIALS - 21.81%
16,700 Allstate Corp./The ............................ 389,611
17,300 AON Corp. ..................................... 730,060
8,000 Arch Capital Group, Ltd.* ..................... 462,240
183,284 Bank of America Corp. ......................... 1,636,726
40,900 Bank of New York Mellon
Corp./The ..................................... 1,042,132
22,900 BB&T Corp. .................................... 534,486
4,100 BlackRock, Inc. ............................... 600,732
14,400 Capital One Financial Corp. ................... 241,056
11,000 Chubb Corp. ................................... 428,450
161,766 Citigroup, Inc. ............................... 493,386
14,100 Equity Residential, REIT ...................... 322,749
15,400 Goldman Sachs Group,
Inc./The ...................................... 1,978,900
22,900 Hartford Financial
Services Group, Inc. .......................... 262,663
126,268 JPMorgan Chase & Co. .......................... 4,166,844
19,400 Keycorp ....................................... 119,310
15,900 Marsh & McLennan
Cos., Inc. .................................... 335,331
38,500 MetLife, Inc. ................................. 1,145,375
33,800 Morgan Stanley ................................ 799,032
27,800 PNC Financial Services
Group, Inc. ................................... 1,103,660
27,600 Prudential Financial, Inc. .................... 797,088
24,600 Regions Financial Corp. ....................... 110,454
8,413 Simon Property Group,
Inc., REIT .................................... 434,111
28,500 State Street Corp. ............................ 972,705
10,300 SunTrust Banks, Inc. .......................... 148,732
43,700 Travelers Cos., Inc./The ...................... 1,797,818
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
38
================================================================================
LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------------------------
FINANCIALS (CONTINUED)
11,600 Unum Group .................................... $ 189,544
63,700 US Banccorp ................................... 1,160,614
16,098 Vornado Realty Trust, REIT .................... 787,031
128,500 Wells Fargo & Co. ............................. 2,571,285
------------
25,762,125
------------
HEALTH CARE - 12.92%
29,400 Amgen, Inc.* .................................. 1,425,018
14,900 CIGNA Corp. ................................... 293,679
13,600 Coventry Health Care, Inc.* ................... 216,376
12,700 Covidien, Ltd. ................................ 418,846
11,500 Eli Lilly & Co. ............................... 378,580
60,700 Johnson & Johnson ............................. 3,178,252
23,000 Life Technologies Corp.* ...................... 857,900
52,300 Merck & Co., Inc./NJ .......................... 1,267,752
17,400 Mylan, Inc./PA* ............................... 230,550
253,940 Pfizer, Inc. .................................. 3,392,638
18,300 Thermo Fisher Scientific, Inc.* ............... 641,964
36,300 UnitedHealth Group, Inc. ...................... 853,776
12,300 WellPoint, Inc.* .............................. 525,948
37,100 Wyeth ......................................... 1,573,040
------------
15,254,319
------------
INDUSTRIALS - 7.96%
12,200 Deere & Co. ................................... 503,372
9,700 Emerson Electric Co. .......................... 330,188
6,200 FedEx Corp. ................................... 346,952
331,500 General Electric Co. .......................... 4,193,475
9,700 Illinois Tool Works, Inc. ..................... 318,160
9,300 L-3 Communications
Holdings, Inc. ................................ 708,195
15,200 Norfolk Southern Corp. ........................ 542,336
24,900 Raytheon Co. .................................. 1,126,227
13,600 Tyco International, Ltd. ...................... 323,136
12,000 United Technologies Corp. ..................... 586,080
16,000 Waste Management, Inc. ........................ 426,720
------------
9,404,841
------------
INFORMATION TECHNOLOGY - 4.38%
6,800 Affiliated Computer Services,
Inc., Class A* ................................ 328,984
38,900 Cisco Systems, Inc.* .......................... 751,548
34,900 EMC Corp./Massachusetts* ..................... 437,297
15,121 Hewlett-Packard Co. ........................... 544,053
42,700 Intel Corp. ................................... 673,806
8,200 International Business
Machines Corp. ................................ 846,322
41,100 Maxim Integrated Products,
Inc. .......................................... 556,905
15,700 Microsoft Corp. ............................... 318,082
12,900 Novellus Systems, Inc.* ....................... 232,974
28,000 Symantec Corp.* ............................... 483,000
------------
5,172,971
------------
MATERIALS - 3.39%
9,800 Air Products & Chemicals,
Inc. .......................................... 645,820
36,000 EI Du Pont de
Nemours & Co. ................................. 1,004,400
18,723 Freeport-McMoRan
Copper & Gold, Inc. ........................... 798,536
24,900 Nucor Corp. ................................... 1,013,181
15,400 Weyerhaeuser Co. .............................. 543,004
------------
4,004,941
------------
TELECOMMUNICATION SERVICES - 6.04%
174,032 AT&T, Inc. .................................... 4,458,700
52,700 Sprint Nextel Corp.* .......................... 229,772
80,620 Verizon Communications,
Inc. .......................................... 2,446,011
------------
7,134,483
------------
UTILITIES - 6.34%
17,900 American Electric
Power Co., Inc. ............................... 472,202
40,200 Duke Energy Corp. ............................. 555,162
19,000 Edison International .......................... 541,690
12,400 Exelon Corp. .................................. 572,012
12,400 FirstEnergy Corp. ............................. 507,160
18,800 FPL Group, Inc. ............................... 1,011,252
12,600 NSTAR ......................................... 395,766
20,200 PG&E Corp. .................................... 749,824
19,500 Public Service Enterprise
Group, Inc. ................................... 581,880
3,600 Questar Corp. ................................. 106,992
20,600 Sempra Energy ................................. 948,012
36,000 Southern Co./The .............................. 1,039,680
------------
7,481,632
------------
TOTAL COMMON STOCKS
(Cost $144,898,630) ........................... 113,489,419
INVESTMENT COMPANIES - 3.56%
- --------------------------------------------------------------------------------------------------
60,200 Consumer Discretionary Select
Sector SPDR Fund ETF .......................... 1,399,650
56,200 Industrial Select Sector SPDR
Fund ETF ...................................... 1,222,912
46,600 SPDR S&P Homebuilders
ETF ........................................... 631,896
954,372 SSgA Prime Money
Market Fund ................................... 954,372
------------
TOTAL INVESTMENT COMPANIES
(Cost $4,041,945) ............................. 4,208,830
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
39
================================================================================
LARGE CAP VALUE FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Value (Note 2)
--------------
TOTAL INVESTMENTS - 99.65%
- --------------------------------------------------------------------------------------------------
(Cost $148,940,575**) ........................................ $117,698,249
NET OTHER ASSETS AND LIABILITIES - 0.35%
- --------------------------------------------------------------------------------------------------
407,330
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$118,105,579
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $149,812,347.
ETF Exchange Traded Fund.
REIT Real Estate Investment Trust.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from
the industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
40
================================================================================
LARGE CAP GROWTH FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF PORTFOLIO ALLOCATION]
Information Technology 32%
Health Care 13%
Industrials 10%
Energy 10%
Consumer Discretionary 9%
Consumer Staples 9%
Financials 6%
Cash and Other Net Assets 5%
Materials 3%
Utilities 2%
Telecommunication Services 1%
[END CHART]
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS - 94.44%
- --------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 8.90%
11,600 Amazon.com, Inc.* ............................. $ 934,032
1,000 AutoZone, Inc.* ............................... 166,390
13,500 Coach, Inc. ................................... 330,750
21,000 Comcast Corp., Class A ........................ 324,660
11,700 DeVry, Inc. ................................... 497,952
5,200 GameStop Corp., Class A* ...................... 156,832
26,900 Kohl's Corp.* ................................. 1,219,915
5,900 Mastercard, Inc., Class A ..................... 1,082,355
30,200 McDonald's Corp. .............................. 1,609,358
9,600 NIKE, Inc., Class B ........................... 503,712
15,400 Staples, Inc. ................................. 317,548
55,400 Starbucks Corp.* .............................. 801,084
38,500 Target Corp. .................................. 1,588,510
12,200 TJX Cos., Inc. ................................ 341,234
21,500 Visa, Inc., Class A ........................... 1,396,640
10,900 Yum! Brands, Inc. ............................. 363,515
------------
11,634,487
------------
CONSUMER STAPLES - 9.62%
10,000 Avon Products, Inc. ........................... 227,600
45,200 Coca-Cola Co./The ............................. 1,945,860
14,500 Colgate-Palmolive Co. ......................... 855,500
13,500 Costco Wholesale Corp. ........................ 656,100
21,300 CVS Caremark Corp. ............................ 676,914
8,000 Kellogg Co. ................................... 336,880
6,100 Lorillard, Inc. ............................... 385,093
42,300 PepsiCo, Inc./NC .............................. 2,104,848
31,900 Procter & Gamble Co./The ..................... 1,577,136
27,000 Walgreen Co. .................................. 848,610
58,800 Wal-Mart Stores, Inc. ......................... 2,963,520
------------
12,578,061
------------
ENERGY - 9.83%
18,600 Cameron International Corp.* .................. 475,788
5,700 Diamond Offshore Drilling, Inc. ............... 412,737
14,300 EOG Resources, Inc. ........................... 907,764
10,200 Exxon Mobil Corp. ............................. 680,034
25,700 Halliburton Co. ............................... 519,654
11,300 Hess Corp. .................................... 619,127
31,600 National Oilwell Varco, Inc.* ................. 956,848
15,000 Noble Corp. ................................... 409,950
22,600 Occidental Petroleum Corp. .................... 1,272,154
15,600 Peabody Energy Corp. .......................... 411,684
80,400 PetroHawk Energy Corp.* ....................... 1,897,440
15,800 Range Resources Corp. ......................... 631,526
26,300 Schlumberger, Ltd. ............................ 1,288,437
17,700 Southwestern Energy Co.* ...................... 634,722
71,300 Weatherford International,
Ltd.* ......................................... 1,185,719
15,982 XTO Energy, Inc. .............................. 553,936
------------
12,857,520
------------
FINANCIALS - 5.80%
12,400 Aflac, Inc. ................................... 358,236
16,900 American Express Co. .......................... 426,218
190,812 Axis Capital Holdings, Ltd. ................... 4,701,608
1,400 BlackRock, Inc. ............................... 205,128
15,900 Charles Schwab Corp./The ...................... 293,832
1,200 CME Group, Inc. ............................... 265,620
7,600 IntercontinentalExchange,
Inc.* ......................................... 665,760
5,200 Northern Trust Corp. .......................... 282,672
11,500 State Street Corp. ............................ 392,495
------------
7,591,569
------------
HEALTH CARE - 12.76%
43,600 Abbott Laboratories ........................... 1,824,660
8,800 Allergan, Inc./United States .................. 410,608
18,600 Baxter International, Inc. .................... 902,100
9,500 Becton Dickinson & Co. ........................ 574,560
7,900 Biogen Idec, Inc.* ............................ 381,886
50,400 Bristol-Myers Squibb Co. ...................... 967,680
12,300 Celgene Corp.* ................................ 525,456
32,300 CIGNA Corp. ................................... 636,633
10,500 Gen-Probe, Inc.* .............................. 505,680
8,600 Genzyme Corp.* ................................ 458,638
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
41
================================================================================
LARGE CAP GROWTH FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------------------------
HEALTH CARE
24,600 Gilead Sciences, Inc.* ........................ $ 1,126,680
2,300 Intuitive Surgical, Inc.* ..................... 330,579
10,500 Johnson & Johnson ............................. 549,780
15,900 Life Technologies Corp.* ...................... 593,070
18,700 Medco Health
Solutions, Inc.* .............................. 814,385
17,900 Merck & Co., Inc./NJ .......................... 433,896
40,400 Roche Holding AG, ADR ......................... 1,277,852
58,503 Schering-Plough Corp. ......................... 1,346,739
12,900 St. Jude Medical, Inc.* ....................... 432,408
83,700 UnitedHealth Group, Inc. ...................... 1,968,624
20,500 Vertex Pharmaceuticals,
Inc.* ......................................... 631,810
------------
16,693,724
------------
INDUSTRIALS - 9.96%
21,800 Boeing Co./The ................................ 873,090
8,500 Burlington Northern
Santa Fe Corp. ................................ 573,580
7,800 CH Robinson Worldwide,
Inc. .......................................... 414,648
12,300 CSX Corp. ..................................... 363,957
6,800 Cummins, Inc. ................................. 231,200
5,100 Danaher Corp. ................................. 298,044
11,400 Deere & Co. ................................... 470,364
18,000 Emerson Electric Co. .......................... 612,720
5,300 Expeditors International of
Washington, Inc. .............................. 183,963
7,200 Flowserve Corp. ............................... 488,880
69,000 General Electric Co. .......................... 872,850
26,600 Honeywell International,
Inc. .......................................... 830,186
11,000 ITT Corp. ..................................... 451,110
9,000 Lockheed Martin Corp. ......................... 706,770
74,100 Quanta Services, Inc.* ........................ 1,684,293
35,400 Raytheon Co. .................................. 1,601,142
28,200 Tyco International, Ltd. ...................... 670,032
18,500 United Parcel Service,
Inc., Class B ................................. 968,290
15,000 United Technologies Corp. ..................... 732,600
------------
13,027,719
------------
INFORMATION TECHNOLOGY - 31.76%
39,200 Accenture, Ltd., Class A ...................... 1,153,656
14,600 Adobe Systems, Inc.* .......................... 399,310
10,000 Altera Corp. .................................. 163,100
26,700 Apple, Inc.* .................................. 3,359,661
14,100 Automatic Data Processing,
Inc. .......................................... 496,320
13,000 BMC Software, Inc.* ........................... 450,710
191,300 Cisco Systems, Inc.* .......................... 3,695,916
18,400 Citrix Systems, Inc.* ......................... 524,952
47,500 Corning, Inc. ................................. 694,450
34,700 Dell, Inc.* ................................... 403,214
80,400 Electronic Arts, Inc.* ........................ 1,636,140
67,200 EMC Corp./Massachusetts* ..................... 842,016
4,000 First Solar, Inc.* ............................ 749,160
9,800 Google, Inc., Class A* ........................ 3,880,506
35,400 Hewlett-Packard Co. ........................... 1,273,692
208,500 Intel Corp. ................................... 3,290,130
44,400 International Business
Machines Corp. ................................ 4,582,524
8,700 Intuit, Inc.* ................................. 201,231
223,300 Microsoft Corp. ............................... 4,524,058
34,900 Novellus Systems, Inc.* ....................... 630,294
112,800 Oracle Corp. .................................. 2,181,552
50,500 Paychex, Inc. ................................. 1,364,005
52,800 QUALCOMM, Inc. ................................ 2,234,496
15,800 Salesforce.com, Inc.* ......................... 676,398
52,700 Texas Instruments, Inc. ....................... 951,762
23,500 Varian Semiconductor
Equipment Associates, Inc.* . 601,365
39,700 Yahoo!, Inc.* ................................. 567,313
------------
41,527,931
------------
MATERIALS - 3.36%
9,700 Agnico-Eagle Mines, Ltd. ...................... 427,867
18,500 Monsanto Co. .................................. 1,570,465
24,093 Nucor Corp. ................................... 980,344
18,900 Praxair, Inc. ................................. 1,410,129
------------
4,388,805
------------
TELECOMMUNICATION SERVICES - 0.72%
58,100 NII Holdings, Inc.* ........................... 938,896
------------
UTILITIES - 1.73%
8,000 Exelon Corp. .................................. 369,040
22,700 FPL Group, Inc. ............................... 1,221,033
14,700 Sempra Energy ................................. 676,494
------------
2,266,567
------------
TOTAL COMMON STOCKS
(Cost $131,351,463) ........................... 123,505,279
Par Value
- ---------
CERTIFICATE OF DEPOSIT - 0.13%
- --------------------------------------------------------------------------------------------------
$ 166,188 State Street Eurodollar
0.010%, due 05/01/09 .......................... 166,188
------------
TOTAL CERTIFICATE OF DEPOSIT
(Cost $166,188) ............................... 166,188
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
42
================================================================================
LARGE CAP GROWTH FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
INVESTMENT COMPANIES - 5.59%
- --------------------------------------------------------------------------------------------------
37,400 iShares Russell 1000
Growth Index Fund ETF ......................... $ 1,445,136
5,870,224 SSgA Prime Money
Market Fund ................................... 5,870,224
------------
TOTAL INVESTMENT COMPANIES
(Cost $7,222,869) ............................. 7,315,360
TOTAL INVESTMENTS - 100.16%
- --------------------------------------------------------------------------------------------------
(Cost $138,740,520**) ........................................ 130,986,827
NET OTHER ASSETS AND LIABILITIES - (0.16)%
- --------------------------------------------------------------------------------------------------
(214,896)
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$130,771,931
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $142,524,215.
ADR American Depositary Receipt.
ETF Exchange Traded Fund.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from
the industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
43
================================================================================
MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF SECTOR ALLOCATION]
Financials 25%
Consumer Discretionary 14%
Utilities 13%
Industrials 10%
Consumer Staples 9%
Information Technology 9%
Energy 6%
Health Care 5%
Materials 5%
Cash and Other Net Assets 3%
Telecommunication Services 1%
[END CHART]
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS - 97.42%
- --------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 13.87%
5,900 Arbitron, Inc. ................................................. $ 122,838
2,800 Autoliv, Inc. .................................................. 69,076
500 AutoZone, Inc.* ................................................ 83,195
6,200 Cablevision Systems Corp., Class A ............................. 106,392
7,700 Cato Corp./The, Class A ........................................ 147,994
5,800 CBS Corp., Class B ............................................. 40,832
2,300 CEC Entertainment, Inc.* .... ................................. 70,058
3,400 Choice Hotels International,Inc. ............................... 101,762
41,864 Ford Motor Co.* ................................................ 250,347
3,700 Fortune Brands, Inc. ........................................... 145,447
7,200 GameStop Corp., Class A* ....................................... 217,152
4,500 Genuine Parts Co. .............................................. 152,820
3,300 Hibbett Sports, Inc.* .......................................... 68,805
25,900 Interpublic Group of Cos., Inc.* ............................... 162,134
4,500 JC Penney Co., Inc. ............................................ 138,105
4,000 KB Home ........................................................ 72,280
3,800 Kohl's Corp.* .................................................. 172,330
15,200 Mattel, Inc. ................................................... 227,392
6,700 Mattel, Inc. ................................................... 100,232
2,400 Matthews International Corp., Class A .......................... 75,168
5,200 McGraw-Hill Cos., Inc./The ..................................... 156,780
3,100 O'Reilly Automotive, Inc.* ..................................... 120,435
3,900 Pulte Homes, Inc. .............................................. 44,889
6,100 Scripps Networks Interactive,Inc., Class A ..................... 167,384
5,300 Snap-On, Inc. .................................................. 179,776
6,900 Sonic Corp.* ................................................... 75,348
12,350 Stage Stores, Inc. ............................................. 151,287
9,900 TJX Cos., Inc. ................................................. 276,903
2,500 Toll Brothers, Inc.* ........................................... 50,650
5,700 Valassis Communications, Inc.* ................................. 29,469
2,300 VF Corp. ....................................................... 136,321
1,900 Whirlpool Corp. ................................................ 85,804
------------
3,999,405
------------
CONSUMER STAPLES - 8.64%
2,600 Bunge, Ltd. .................................................... 124,826
2,800 Casey's General Stores, Inc. ................................... 74,508
2,000 Clorox Co. ..................................................... 112,100
12,100 ConAgra Foods, Inc. ............................................ 214,170
12,000 Constellation Brands, Inc., Class A* ........................... 139,080
2,100 Energizer Holdings, Inc.* ...................................... 120,330
4,300 Herbalife, Ltd. ................................................ 85,226
4,700 HJ Heinz Co. ................................................... 161,774
3,100 Hormel Foods Corp. ............................................. 96,999
4,900 Lance, Inc. .................................................... 113,484
4,500 Lorillard, Inc. ................................................ 284,085
4,800 Molson Coors Brewing Co., Class B .............................. 183,600
1,500 Ralcorp Holdings, Inc.* ........................................ 85,740
7,600 Safeway, Inc. .................................................. 150,100
16,000 Sara Lee Corp. ................................................. 133,120
8,700 SUPERVALU, Inc. ................................................ 142,245
5,500 Tyson Foods, Inc., Class A ..................................... 57,970
4,200 Wal-Mart Stores, Inc. .......................................... 211,680
------------
2,491,037
------------
ENERGY - 6.12%
8,900 BJ Services Co. ................................................ 123,621
35,900 El Paso Corp. .................................................. 247,710
11,200 Forest Oil Corp.* .............................................. 179,200
9,900 Helmerich & Payne, Inc. ........................................ 305,118
6,000 Noble Energy, Inc. ............................................. 340,500
8,800 PetroHawk Energy Corp.* ........................................ 207,680
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
44
================================================================================
MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------------------------
ENERGY (CONTINUED)
3,800 Plains Exploration & Production Co.* ............................ $ 71,706
900 SEACOR Holdings, Inc.* .......................................... 59,148
3,600 St. Mary Land & Exploration Co. ................................. 64,332
6,700 Tesoro Corp. .................................................... 102,175
1,900 Whiting Petroleum Corp.* ........................................ 62,244
------------
1,763,434
------------
FINANCIALS - 24.83%
234 Alleghany Corp.* ................................................ 59,357
5,000 Ameriprise Financial, Inc. ...................................... 131,750
15,100 Annaly Capital Management, Inc., REIT ........................... 212,457
8,400 AON Corp. ....................................................... 354,480
3,700 Arch Capital Group, Ltd.* ....................................... 213,786
11,399 Ares Capital Corp. .............................................. 66,912
6,860 Associated Banc-Corp. ........................................... 106,124
2,500 Assurant, Inc. .................................................. 61,100
6,300 Assured Guaranty, Ltd. .......................................... 60,858
3,197 AvalonBay Communities, Inc., REIT ............................... 181,622
7,800 Axis Capital Holdings, Ltd. ..................................... 192,192
2,200 BlackRock, Inc. ................................................. 322,344
3,100 Boston Properties, Inc., REIT ................................... 153,202
2,700 Credit Acceptance Corp.* ........................................ 62,073
2,600 Cullen/Frost Bankers, Inc. ...................................... 122,434
6,575 Delphi Financial Group, Inc., Class A ........................... 113,550
5,000 DiamondRock Hospitality Co., REIT ............................... 32,450
5,800 Discover Financial Services ..................................... 47,154
6,900 Equity Residential, REIT ........................................ 157,941
3,032 Everest Re Group, Ltd. .......................................... 226,309
13,100 Fidelity National Financial, Inc., Class A ...................... 237,503
16,100 Fifth Third Bancorp ............................................. 66,010
2,500 Financial Federal Corp. ......................................... 61,525
1,600 First American Corp. ............................................ 44,928
4,100 First Horizon National Corp. .................................... 47,191
3,900 First Midwest Bancorp, Inc./IL .................................. 34,554
7,900 Hudson City Bancorp, Inc. ....................................... 99,224
5,140 International Bancshares Corp. .................................. 69,441
2,300 IPC Holdings, Ltd. .............................................. 59,892
10,500 JPMorgan Chase & Co. ............................................ 346,500
22,600 Keycorp ......................................................... 138,990
1,300 Leucadia National Corp.* ........................................ 27,599
2,600 Lincoln National Corp. .......................................... 29,224
1,400 M&T Bank Corp. .................................................. 73,430
1,800 Mack-Cali Realty Corp., REIT .................................... 48,348
9,700 Marsh & McLennan Cos., Inc. ..................................... 204,573
5,198 Marshall & Ilsley Corp. ......................................... 30,044
3,500 MB Financial, Inc. .............................................. 47,705
3,600 NewAlliance Bancshares, Inc. .................................... 46,476
2,200 Northern Trust Corp. ............................................ 119,592
7,500 People's United Financial, Inc. ................................. 117,150
3,900 Platinum Underwriters Holdings, Ltd. ............................ 112,203
6,400 Principal Financial Group, Inc. ................................. 104,576
10,100 Progressive Corp./The* .......................................... 154,328
5,700 Prologis, REIT .................................................. 51,927
900 PS Business Parks, Inc., REIT ................................... 39,375
1,900 Public Storage, REIT ............................................ 127,034
4,900 Realty Income Corp., REIT ....................................... 109,417
13,900 Regions Financial Corp. ......................................... 62,411
3,400 Reinsurance Group of America, Inc. .............................. 108,086
6,300 State Street Corp. .............................................. 215,019
3,200 Torchmark Corp. ................................................. 93,856
25,000 Unum Group ...................................................... 408,500
7,300 US Banccorp ..................................................... 133,006
1,600 Ventas, Inc., REIT .............................................. 45,824
4,880 Vornado Realty Trust, REIT ...................................... 238,583
7,900 Webster Financial Corp. ......................................... 41,317
1,200 Westamerica Bancorporation ...................................... 64,356
7,000 WR Berkley Corp. ................................................ 167,370
2,800 XL Capital, Ltd., Class A ....................................... 26,628
2,400 Zions Bancorporation ............................................ 26,232
------------
7,158,042
------------
HEALTH CARE - 5.46%
4,100 Amsurg Corp.* ................................................... 84,214
4,400 Centene Corp.* .................................................. 80,828
3,500 Charles River Laboratories International, Inc.* ................. 96,775
12,400 CIGNA Corp. ..................................................... 244,404
7,700 Forest Laboratories, Inc.* ...................................... 167,013
9,200 Hologic, Inc.* .................................................. 136,712
8,953 Life Technologies Corp.* ........................................ 333,947
17,500 Mylan, Inc./PA* ................................................. 231,875
1,500 Orthofix International N.V.* .................................... 25,575
2,500 Schering-Plough Corp. ........................................... 57,550
11,000 Universal American Corp./NY* .................................... 113,630
------------
1,572,523
------------
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
45
================================================================================
MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------------------------
INDUSTRIALS - 10.11%
13,200 ACCO Brands Corp.* ............................................. $ 27,588
2,400 Acuity Brands, Inc. ............................................ 68,976
6,900 Albany International Corp., Class A ............................ 64,032
8,600 Belden, Inc. ................................................... 138,632
8,100 Carlisle Cos., Inc. ............................................ 184,275
1,100 Copart, Inc.* .................................................. 34,529
1,800 Danaher Corp. .................................................. 105,192
4,000 Dover Corp. .................................................... 123,120
1,500 ESCO Technologies, Inc.* ....................................... 62,370
600 Flowserve Corp. ................................................ 40,740
4,800 GATX Corp. ..................................................... 144,528
2,200 General Dynamics Corp. ......................................... 113,674
2,487 Genesee & Wyoming, Inc., Class A* .............................. 74,610
3,100 Graco, Inc. .................................................... 73,129
5,500 Ingersoll-Rand Co., Ltd., Class A .............................. 119,735
4,800 ITT Corp. ...................................................... 196,848
4,900 KBR, Inc. ...................................................... 76,538
2,400 Kirby Corp.* ................................................... 74,064
2,000 L-3 Communications Holdings, Inc. .............................. 152,300
5,300 Mueller Industries, Inc. ....................................... 116,441
1,200 Norfolk Southern Corp. ......................................... 42,816
3,900 Raytheon Co. ................................................... 176,397
5,665 Republic Services, Inc. ........................................ 118,965
1,900 Simpson Manufacturing Co., Inc. ................................ 42,294
20,100 Southwest Airlines Co. ......................................... 140,298
5,100 Tyco International, Ltd. ....................................... 121,176
3,500 United Stationers, Inc.* ....................................... 114,555
1,300 URS Corp.* ..................................................... 57,278
1,300 WW Grainger, Inc. .............................................. 109,044
------------
2,914,144
------------
INFORMATION TECHNOLOGY - 9.00%
6,400 Affiliated Computer Services, Inc., Class A* ................... 309,632
10,800 Arrow Electronics, Inc.* ....................................... 245,592
12,800 Brocade Communications Systems, Inc.* .......................... 73,984
8,500 CA, Inc. ....................................................... 146,625
3,100 Computer Sciences Corp.* ....................................... 114,576
4,600 Diebold, Inc. .................................................. 121,578
4,900 Electronics for Imaging, Inc.* ................................. 48,118
2,200 Fiserv, Inc.* .................................................. 82,104
13,100 Maxim Integrated Products, Inc. ................................ 177,505
7,500 Maxim Integrated Products, Inc. ................................ 101,625
3,400 MAXIMUS, Inc. .................................................. 137,122
15,100 Micron Technology, Inc.* ....................................... 73,688
9,900 Novellus Systems, Inc.* ........................................ 178,794
6,800 Seagate Technology ............................................. 55,488
15,400 Sun Microsystems, Inc.* ........................................ 141,064
8,400 Synopsys, Inc.* ................................................ 182,952
3,600 Teradata Corp.* ................................................ 60,192
6,300 Websense, Inc.* ................................................ 112,329
23,800 Xerox Corp. .................................................... 145,418
4,000 Zebra Technologies Corp., Class A* ............................. 85,000
------------
2,593,386
------------
MATERIALS - 5.32%
2,500 Air Products & Chemicals, Inc. ................................. 164,750
2,600 Aptargroup, Inc. ............................................... 80,678
900 Ball Corp. ..................................................... 33,948
2,000 Deltic Timber Corp. ............................................ 84,280
3,200 Ecolab, Inc. ................................................... 123,360
4,900 EI Du Pont de Nemours & Co. .................................... 136,710
2,200 FMC Corp. ...................................................... 107,206
2,935 Freeport-McMoRan Copper & Gold, Inc. ........................... 125,178
3,400 Nucor Corp. .................................................... 138,346
6,700 Pactiv Corp.* .................................................. 146,462
6,200 Sealed Air Corp. ............................................... 118,172
1,200 Sigma-Aldrich Corp. ............................................ 52,608
800 Vulcan Materials Co. ULC ....................................... 38,040
5,200 Weyerhaeuser Co. ............................................... 183,352
------------
1,533,090
------------
TELECOMMUNICATION SERVICES - 1.42%
8,500 Crown Castle International Corp.* .............................. 208,420
3,400 Embarq Corp. ................................................... 124,304
19,700 Qwest Communications International, Inc. ....................... 76,633
------------
409,357
------------
UTILITIES - 12.65%
4,600 Ameren Corp. ................................................... 105,892
14,100 American Electric Power Co., Inc. .............................. 371,958
2,300 Atmos Energy Corp. ............................................. 56,833
4,200 Consolidated Edison, Inc. ...................................... 155,946
9,200 Edison International ........................................... 262,292
1,000 Entergy Corp. .................................................. 64,770
1,300 New Jersey Resources Corp. ..................................... 42,796
2,900 NRG Energy, Inc.* .............................................. 52,142
8,800 NSTAR .......................................................... 276,408
5,400 Oneok, Inc. .................................................... 141,318
11,200 PG&E Corp. ..................................................... 415,744
9,500 Progress Energy, Inc. .......................................... 324,140
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
46
================================================================================
MID CAP VALUE FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------------------------
UTILITIES (CONTINUED)
2,900 Questar Corp. .................................................. $ 86,188
8,900 Sempra Energy .................................................. 409,578
3,900 UGI Corp. ...................................................... 89,466
3,500 Unisource Energy Corp. ......................................... 92,120
4,700 Westar Energy, Inc. ............................................ 82,391
2,000 WGL Holdings, Inc. ............................................. 62,280
5,000 Wisconsin Energy Corp. ......................................... 199,800
19,300 Xcel Energy, Inc. .............................................. 355,892
------------
3,647,954
------------
TOTAL COMMON STOCKS
(Cost $35,130,388) ............................................. 28,082,372
INVESTMENT COMPANIES - 2.47%
- --------------------------------------------------------------------------------------------------
4,400 SPDR S&P Homebuilders ETF ...................................... 59,664
653,737 SSgA Prime Money Market Fund ................................... 653,737
------------
TOTAL INVESTMENT COMPANIES
(Cost $709,562) ................................................ 713,401
TOTAL INVESTMENTS - 99.89%
- --------------------------------------------------------------------------------------------------
(Cost $35,839,950**) .......................................................... 28,795,773
NET OTHER ASSETS AND LIABILITIES - 0.11%
- --------------------------------------------------------------------------------------------------
30,640
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$28,826,413
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $36,486,724.
ETF Exchange Traded Fund.
REIT Real Estate Investment Trust.
ULC Unlimited Liability Company.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from
the industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
47
================================================================================
MID CAP GROWTH FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF SECTOR ALLOCATION]
Information Technology 23%
Consumer Discretionary 18%
Industrials 17%
Health Care 13%
Energy 10%
Financials 7%
Materials 5%
Cash and Other Net Assets 4%
Consumer Staples 3%
[END CHART]
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS - 96.28%
- --------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 17.79%
11,400 Aeropostale, Inc.* .............................................. $ 387,258
17,500 Buckle, Inc./The ................................................ 653,975
18,200 Coach, Inc. ..................................................... 445,900
20,700 GameStop Corp., Class A*......................................... 624,312
17,500 Guess?, Inc. .................................................... 455,700
17,000 Gymboree Corp.*.................................................. 584,800
4,000 ITT Educational Services, Inc.*.................................. 403,080
28,300 Nordstrom, Inc. ................................................. 640,429
400 NVR, Inc.* ...................................................... 202,148
12,600 O'Reilly Automotive, Inc.* ...................................... 489,510
4,600 priceline.com, Inc.* ............................................ 446,614
15,500 Steiner Leisure, Ltd.*........................................... 490,420
35,900 True Religion Apparel, Inc.*..................................... 565,784
12,500 Yum! Brands, Inc. ............................................... 416,875
------------
6,806,805
------------
CONSUMER STAPLES - 3.46%
10,500 BJ's Wholesale Club, Inc.* ...................................... 350,070
19,000 Herbalife, Ltd. ................................................. 376,580
36,500 SUPERVALU, Inc. ................................................. 596,775
------------
1,323,425
------------
ENERGY - 10.19%
40,200 Atwood Oceanics, Inc.* .......................................... 897,264
9,400 Consol Energy, Inc. ............................................. 294,032
49,600 Hercules Offshore, Inc.* ........................................ 158,720
12,300 National Oilwell Varco, Inc.* ................................... 372,444
17,500 Noble Corp. ..................................................... 478,275
10,000 Noble Energy, Inc. .............................................. 567,500
12,300 Ultra Petroleum Corp.*........................................... 526,440
18,500 Whiting Petroleum Corp.* ........................................ 606,060
------------
3,900,735
------------
FINANCIALS - 6.78%
27,900 Aflac, Inc. ..................................................... 806,031
26,700 Ameriprise Financial, Inc. ...................................... 703,545
87,200 Assured Guaranty, Ltd. .......................................... 842,352
21,100 Hartford Financial Services Group, Inc. ......................... 242,017
------------
2,593,945
------------
HEALTH CARE - 13.44%
10,900 Amedisys, Inc.* ................................................. 365,586
6,900 Beckman Coulter, Inc. ........................................... 362,664
7,500 Cephalon, Inc.*.................................................. 492,075
7,700 Charles River Laboratories International, Inc.*.................. 212,905
12,700 Community Health Systems, Inc.*.................................. 290,068
23,100 Coventry Health Care, Inc.* ..................................... 367,521
4,200 Genzyme Corp.* .................................................. 223,986
8,800 Hospira, Inc.* .................................................. 289,256
21,000 Humana, Inc.* ................................................... 604,380
16,400 Life Technologies Corp.*......................................... 611,720
30,700 Psychiatric Solutions, Inc.* .................................... 595,273
10,300 St. Jude Medical, Inc.* ......................................... 345,256
8,700 Waters Corp.*.................................................... 384,279
------------
5,144,969
------------
INDUSTRIALS - 17.02%
34,600 DynCorp International, Inc., Class A* ........................... 527,650
11,200 Flowserve Corp. ................................................. 760,480
16,400 Graco, Inc. ..................................................... 386,876
32,000 Herman Miller, Inc. ............................................. 475,840
30,600 HUB Group, Inc., Class A* ....................................... 703,800
12,100 Precision Castparts Corp. ....................................... 905,806
23,500 Robbins & Myers, Inc. ........................................... 445,325
11,600 Teledyne Technologies, Inc.* .................................... 370,388
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
48
================================================================================
MID CAP GROWTH FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------------------------
INDUSTRIALS (CONTINUED)
25,700 Thomas & Betts Corp.* ........................................... $ 799,784
9,800 Valmont Industries, Inc. ........................................ 625,044
19,800 WESCO International, Inc.* ...................................... 514,800
------------
6,515,793
------------
INFORMATION TECHNOLOGY - 22.68%
34,100 Akamai Technologies, Inc.* ...................................... 750,882
20,300 Alliance Data Systems Corp.* .................................... 849,961
30,600 Amdocs, Ltd.* ................................................... 640,458
10,500 Amphenol Corp., Class A.......................................... 355,320
19,000 BMC Software, Inc.* ............................................. 658,730
5,700 Broadcom Corp., Class A*......................................... 132,183
140,000 Brocade Communications Systems, Inc.* ........................... 809,200
28,000 Cognizant Technology Solutions Corp., Class A*................... 694,120
16,900 Juniper Networks, Inc.*.......................................... 365,885
36,300 Maxim Integrated Products, Inc. ................................. 491,865
46,400 NetApp, Inc.* ................................................... 849,120
51,300 Perot Systems Corp., Class A* ................................... 721,278
26,700 Polycom, Inc.* .................................................. 497,688
51,600 Western Union Co./The............................................ 864,300
------------
8,680,990
------------
MATERIALS - 4.92%
26,900 Cliffs Natural Resources, Inc. .................................. 620,314
36,000 Pactiv Corp.* ................................................... 786,960
38,200 Steel Dynamics, Inc. ............................................ 475,590
------------
1,882,864
------------
TOTAL COMMON STOCKS
(Cost $35,732,082) .............................................. 36,849,526
INVESTMENT COMPANY - 1.84%
- --------------------------------------------------------------------------------------------------
705,313 SSgA Prime Money Market Fund .................................... 705,313
------------
TOTAL INVESTMENT COMPANY
(Cost $705,313).................................................. 705,313
TOTAL INVESTMENTS - 98.12%
- --------------------------------------------------------------------------------------------------
(Cost $36,437,395**) .......................................................... 37,554,839
NET OTHER ASSETS AND LIABILITIES - 1.88%
- --------------------------------------------------------------------------------------------------
720,421
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$ 38,275,260
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $42,469,184.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from
the industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
49
================================================================================
SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[PIE CHART OF SECTOR ALLOCATION]
Industrials 21%
Financials 20%
Consumer Discretionary 19%
Information Technology 9%
Health Care 8%
Utilities 6%
Cash and Other Net Assets 5%
Materials 5%
Consumer Staples 4%
Energy 3%
[END CHART]
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS - 95.11%
- --------------------------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 18.56%
18,300 Arbitron, Inc. ................................................. $ 381,006
22,600 Cato Corp./The, Class A......................................... 434,372
6,200 CEC Entertainment, Inc.*........................................ 188,852
9,300 Choice Hotels International, Inc. .............................. 278,349
18,600 Helen of Troy, Ltd.* ........................................... 296,670
8,900 Hibbett Sports, Inc.* .......................................... 185,565
7,200 Matthews International Corp., Class A .......................... 225,504
21,400 Sonic Corp.* ................................................... 233,688
37,200 Stage Stores, Inc. ............................................. 455,700
9,500 Tempur-Pedic International, Inc. ............................... 122,170
9,200 Unifirst Corp./MA .............................................. 343,068
15,400 Valassis Communications, Inc.* ................................. 79,618
----------
3,224,562
----------
CONSUMER STAPLES - 4.44%
7,300 Casey's General Stores, Inc. ................................... 194,253
12,900 Herbalife, Ltd. ................................................ 255,678
13,900 Lance, Inc. .................................................... 321,924
----------
771,855
----------
ENERGY - 3.22%
11,800 Penn Virginia Corp. ............................................ 166,026
2,400 SEACOR Holdings, Inc.* ......................................... 157,728
2,000 St. Mary Land & Exploration Co. ................................ 35,740
6,100 Whiting Petroleum Corp.* ....................................... 199,836
----------
559,330
----------
FINANCIALS - 20.13%
11,797 Acadia Realty Trust, REIT....................................... 171,056
500 Alleghany Corp.* ............................................... 126,830
7,700 American Campus Communities, Inc., REIT ........................ 166,936
31,700 Ares Capital Corp. ............................................. 186,079
17,700 Assured Guaranty, Ltd. ......................................... 170,982
6,800 Credit Acceptance Corp.* ....................................... 156,332
19,400 Delphi Financial Group, Inc., Class A .......................... 335,038
13,700 DiamondRock Hospitality Co., REIT............................... 88,913
6,700 Financial Federal Corp. ........................................ 164,887
12,200 First Midwest Bancorp, Inc./IL ................................. 108,092
14,420 International Bancshares Corp. ................................. 194,814
7,300 IPC Holdings, Ltd. ............................................. 190,092
5,100 Mack-Cali Realty Corp., REIT ................................... 136,986
9,200 MB Financial, Inc. ............................................. 125,396
8,900 NewAlliance Bancshares, Inc. ................................... 114,899
9,300 Platinum Underwriters Holdings, Ltd. ........................... 267,561
2,300 PS Business Parks, Inc., REIT .................................. 100,625
13,500 Realty Income Corp., REIT ...................................... 301,455
3,300 Reinsurance Group of America, Inc. ............................. 104,907
21,000 Webster Financial Corp. ........................................ 109,830
3,300 Westamerica Bancorporation ..................................... 176,979
----------
3,498,689
----------
HEALTH CARE - 8.41%
11,300 Amsurg Corp.*................................................... 232,102
11,700 Centene Corp.* ................................................. 214,929
9,700 Charles River Laboratories International, Inc.*................. 268,205
6,000 Corvel Corp.* .................................................. 135,000
6,200 ICU Medical, Inc.* ............................................. 233,120
3,900 Orthofix International N.V.* ................................... 66,495
30,100 Universal American Corp./NY* ................................... 310,933
----------
1,460,784
----------
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
50
================================================================================
SMALL CAP VALUE FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------------------------
INDUSTRIALS - 20.57%
36,500 ACCO Brands Corp.* ............................................. $ 76,285
6,600 Acuity Brands, Inc. ............................................ 189,684
23,200 Albany International Corp., Class A ............................ 215,296
25,500 Belden, Inc. ................................................... 411,060
20,016 Bowne & Co., Inc. .............................................. 102,282
24,800 Carlisle Cos., Inc. ............................................ 564,200
100 Copart, Inc.* .................................................. 3,139
4,000 ESCO Technologies, Inc.*........................................ 166,320
13,400 GATX Corp. ..................................................... 403,474
8,300 Genesee & Wyoming, Inc., Class A* .............................. 249,000
6,800 Kirby Corp.*.................................................... 209,848
14,500 Mueller Industries, Inc. ....................................... 318,565
5,200 Simpson Manufacturing Co., Inc. ................................ 115,752
6,700 Sterling Construction Co., Inc.* ............................... 125,759
10,400 United Stationers, Inc.* ....................................... 340,392
12,300 Vitran Corp., Inc.*............................................. 83,640
----------
3,574,696
----------
INFORMATION TECHNOLOGY - 9.22%
12,300 Diebold, Inc. .................................................. 325,089
18,700 Electronics for Imaging, Inc.* ................................. 183,634
9,100 MAXIMUS, Inc. .................................................. 367,003
22,800 NAM TAI Electronics, Inc. ...................................... 94,392
17,200 Websense, Inc.* ................................................ 306,676
29,700 Xyratex, Ltd.*.................................................. 99,495
10,600 Zebra Technologies Corp., Class A* ............................. 225,250
----------
1,601,539
----------
MATERIALS - 4.77%
7,900 Aptargroup, Inc. ............................................... 245,137
5,600 Deltic Timber Corp. ............................................ 235,984
25,700 Zep, Inc. ...................................................... 347,721
----------
828,842
----------
UTILITIES - 5.79%
8,400 Atmos Energy Corp. ............................................. 207,564
3,750 New Jersey Resources Corp. ..................................... 123,450
10,300 Unisource Energy Corp. ......................................... 271,096
13,300 Westar Energy, Inc. ............................................ 233,149
5,500 WGL Holdings, Inc. ............................................. 171,270
----------
1,006,529
----------
TOTAL COMMON STOCKS
(Cost $20,133,987) ............................................. 16,526,826
INVESTMENT COMPANY - 4.04%
- --------------------------------------------------------------------------------------------------
702,066 SSgA Prime Money Market Fund ................................... 702,066
----------
TOTAL INVESTMENT COMPANY
(Cost $702,066)................................................. 702,066
TOTAL INVESTMENTS - 99.15%
- --------------------------------------------------------------------------------------------------
(Cost $20,836,053**) .......................................................... 17,228,892
NET OTHER ASSETS AND LIABILITIES - 0.85%
- --------------------------------------------------------------------------------------------------
148,551
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------------------------
$ 17,377,443
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $21,380,411.
REIT Real Estate Investment Trust.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from
the industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
51
================================================================================
SMALL CAP GROWTH FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[CHART OF SECTOR ALLOCATION]
Industrials 22%
Health Care 21%
Information Technology 20%
Consumer Discretionary 13%
Financials 9%
Cash and Other Net Assets 7%
Energy 4%
Materials 2%
Consumer Staples 1%
Telecommunication Services 1%
[END CHART]
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS - 93.11%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY - 12.93%
4,800 Aaron's, Inc. ...................................... $ 161,088
2,400 Career Education Corp.*............................. 52,896
3,400 Carter's, Inc.* .................................... 72,692
3,700 CEC Entertainment, Inc.*............................ 112,702
11,800 CKE Restaurants, Inc. .............................. 112,926
5,900 Corinthian Colleges, Inc.* ......................... 90,860
1,900 DineEquity, Inc. ................................... 60,876
7,100 Drew Industries, Inc.*.............................. 101,388
1,900 Gaylord Entertainment Co.*.......................... 26,486
3,700 Interactive Data Corp. ............................. 83,176
1,200 JOS A Bank Clothiers, Inc.* ........................ 48,528
2,000 Maidenform Brands, Inc.* ........................... 25,500
2,400 Matthews International Corp., Class A .............. 75,168
5,900 Men's Wearhouse, Inc./The .......................... 109,976
2,700 Meritage Homes Corp.*............................... 56,187
1,700 NetFlix, Inc.*...................................... 77,027
1,400 Panera Bread Co., Class A*.......................... 78,414
4,900 PF Chang's China Bistro, Inc.*...................... 147,882
2,800 Pinnacle Entertainment, Inc.*....................... 34,944
600 Red Robin Gourmet Burgers, Inc.*.................... 14,730
6,600 Tempur-Pedic International, Inc. ................... 84,876
4,500 Wolverine World Wide, Inc. ......................... 93,735
2,800 Zumiez, Inc.* ...................................... 33,768
----------
1,755,825
----------
CONSUMER STAPLES - 1.15%
600 Coca-Cola Bottling Co. Consolidated ................ 31,272
100 Green Mountain Coffee Roasters, Inc.*............... 7,231
1,800 Ruddick Corp. ...................................... 46,188
6,200 Winn-Dixie Stores, Inc.*............................ 71,052
----------
155,743
----------
ENERGY - 3.80%
500 Arena Resources, Inc.* ............................. 14,335
3,100 Atwood Oceanics, Inc.* ............................. 69,192
2,300 Bill Barrett Corp.* ................................ 59,754
3,400 CARBO Ceramics, Inc. ............................... 104,414
2,200 Matrix Service Co.* ................................ 21,076
4,800 Penn Virginia Corp. ................................ 67,536
3,600 Petroleum Development Corp.*........................ 58,356
8,100 RPC, Inc. .......................................... 86,670
1,500 Walter Energy, Inc. ................................ 34,200
----------
515,533
----------
FINANCIALS - 9.51%
2,600 EastGroup Properties, Inc., REIT.................... 87,386
4,300 eHealth, Inc.* ..................................... 82,517
2,600 GAMCO Investors, Inc., Class A ..................... 130,390
300 Greenhill & Co., Inc. .............................. 23,259
2,400 Hancock Holding Co. ................................ 90,888
4,000 Highwoods Properties, Inc., REIT.................... 95,960
2,700 Home Properties, Inc., REIT......................... 98,388
4,500 KBW, Inc.* ......................................... 108,855
5,700 Knight Capital Group, Inc., Class A* ............... 88,293
400 Mid-America Apartment Communities, Inc., REIT ...... 14,796
3,700 Potlatch Corp., REIT................................ 108,817
2,900 Stifel Financial Corp.* ............................ 142,767
1,100 Tanger Factory Outlet Centers, REIT................. 36,652
37 Teton Advisors, Inc. (L)(T)*........................ 1
3,400 Tower Group, Inc. .................................. 92,446
547 Walter Investment Management Corp., REIT* .......... 4,376
4,000 Washington Real Estate Investment Trust, REIT....... 85,320
----------
1,291,111
----------
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
52
================================================================================
SMALL CAP GROWTH FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
HEALTH CARE - 20.87%
1,500 Acorda Therapeutics, Inc.* ......................... $ 29,745
3,500 Alexion Pharmaceuticals, Inc.*...................... 116,970
9,700 Alkermes, Inc.* .................................... 74,205
12,500 Allscripts-Misys Healthcare Solutions, Inc. ........ 155,250
3,000 AMAG Pharmaceuticals, Inc.* 134,550
11,300 American Medical Systems Holdings, Inc.* ........... 139,781
12,200 AMN Healthcare Services, Inc.*...................... 84,058
3,700 Auxilium Pharmaceuticals, Inc.*..................... 84,730
3,300 Centene Corp.* ..................................... 60,621
2,300 Cepheid, Inc.* ..................................... 22,310
600 Chemed Corp. ....................................... 25,398
3,400 Cubist Pharmaceuticals, Inc.*....................... 56,440
6,200 Emeritus Corp.* .................................... 56,048
6,900 ev3, Inc.* ......................................... 57,684
2,600 Haemonetics Corp.* ................................. 134,238
2,100 HMS Holdings Corp.* ................................ 62,958
4,800 Immucor, Inc.* ..................................... 78,192
7,600 Isis Pharmaceuticals, Inc.* ........................ 119,168
1,700 Landauer, Inc. ..................................... 90,066
6,100 Medicines Co./The*.................................. 60,878
3,600 Myriad Genetics, Inc.* ............................. 139,644
1,800 National Healthcare Corp. .......................... 71,460
3,800 Onyx Pharmaceuticals, Inc.*......................... 98,420
3,200 OSI Pharmaceuticals, Inc.* ......................... 107,424
13,100 PDL BioPharma, Inc. ................................ 93,665
5,500 PSS World Medical, Inc.* ........................... 79,860
7,800 Regeneron Pharmaceuticals, Inc.*.................... 103,428
4,700 STERIS Corp. ....................................... 113,270
1,900 Theravance, Inc.* .................................. 27,227
4,500 Thoratec Corp.*..................................... 130,770
5,100 Valeant Pharmaceuticals International* ............. 85,476
3,800 West Pharmaceutical Services, Inc. ................. 124,070
1,200 XenoPort, Inc.* .................................... 16,404
----------
2,834,408
----------
INDUSTRIALS - 22.47%
7,500 AAR Corp.*.......................................... 113,025
5,600 Actuant Corp., Class A ............................. 68,656
1,700 Acuity Brands, Inc. ................................ 48,858
1,200 Ameron International Corp. ......................... 71,004
2,200 Badger Meter, Inc. ................................. 85,712
3,200 Beacon Roofing Supply, Inc.*........................ 50,880
5,000 CLARCOR, Inc. ...................................... 155,400
5,900 Curtiss-Wright Corp. ............................... 188,623
1,600 Deluxe Corp. ....................................... 23,200
700 EMCOR Group, Inc.* ................................. 14,553
1,500 EnerNOC, Inc.* ..................................... 26,205
3,400 Esterline Technologies Corp.*....................... 89,590
3,200 Franklin Electric Co., Inc. ........................ 75,808
3,200 GeoEye, Inc.*....................................... 79,648
8,900 Heartland Express, Inc. ............................ 133,055
2,500 Herman Miller, Inc. ................................ 37,175
1,700 ICF International, Inc.* ........................... 46,767
6,000 Korn/Ferry International* .......................... 63,540
3,000 Layne Christensen Co.*.............................. 64,980
600 Lindsay Corp. ...................................... 23,346
2,300 MasTec, Inc.*....................................... 28,773
4,500 Mcgrath Rentcorp ................................... 95,130
3,700 Mine Safety Appliances Co. ......................... 91,205
4,000 Moog, Inc., Class A* ............................... 107,120
13,500 MPS Group, Inc.* ................................... 108,540
900 Multi-Color Corp. .................................. 10,683
3,100 Navigant Consulting, Inc.*.......................... 45,601
3,600 Nordson Corp. ...................................... 130,608
2,900 Orbital Sciences Corp.* ............................ 44,834
2,200 RBC Bearings, Inc.* ................................ 40,700
4,700 Resources Connection, Inc.*......................... 91,885
2,300 Rollins, Inc. ...................................... 41,400
3,200 SYKES Enterprises, Inc.*............................ 62,912
2,900 Tetra Tech, Inc.* .................................. 71,224
2,400 Triumph Group, Inc. ................................ 99,192
2,500 United Stationers, Inc.* ........................... 81,825
1,700 Valmont Industries, Inc. ........................... 108,426
2,300 Watsco, Inc. ....................................... 98,785
3,400 Watson Wyatt Worldwide, Inc., Class A .............. 180,370
2,600 Woodward Governor Co. .............................. 51,896
----------
3,051,134
----------
INFORMATION TECHNOLOGY - 19.92%
4,700 Adtran, Inc. ....................................... 99,405
9,300 Advanced Energy Industries, Inc.*................... 78,399
3,200 Advent Software, Inc.*.............................. 106,368
3,400 Anixter International, Inc.* ....................... 135,252
3,400 ANSYS, Inc.* ....................................... 93,908
4,400 Cabot Microelectonics Corp.*........................ 126,764
2,900 Cognizant Technology Solutions Corp., Class A* ..... 71,891
600 CommScope, Inc.* ................................... 15,060
300 Comtech Telecommunications Corp.* .................. 10,041
4,400 CSG Systems International, Inc.*.................... 63,800
900 Cymer, Inc.* ....................................... 25,569
6,600 EPIQ Systems, Inc.* ................................ 102,102
2,000 Factset Research Systems, Inc. ..................... 107,180
10,800 IXYS Corp. ......................................... 103,032
4,300 j2 Global Communications, Inc.*..................... 103,157
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
53
================================================================================
SMALL CAP GROWTH FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY (CONTINUED)
5,300 Littelfuse, Inc.* .................................. $ 86,867
600 Macrovision Solutions Corp.*........................ 12,132
2,400 MAXIMUS, Inc. ...................................... 96,792
1,700 MercadoLibre, Inc.* ................................ 46,461
7,800 MKS Instruments, Inc.* ............................. 122,070
500 Net 1 UEPS Technologies, Inc.*...................... 8,250
900 NVE Corp.* ......................................... 34,236
7,600 Parametric Technology Corp.*........................ 84,740
1,100 Plexus Corp.* ...................................... 24,365
5,600 Progress Software Corp.* ........................... 118,664
3,000 Quality Systems, Inc. .............................. 160,860
3,400 Quest Software, Inc.* .............................. 49,402
900 RightNow Technologies, Inc.*........................ 6,795
4,900 Rofin-Sinar Technologies, Inc.*..................... 104,419
5,700 Scansource, Inc.* .................................. 140,847
3,900 SPSS, Inc.* ........................................ 120,510
2,300 Synaptics, Inc.* ................................... 74,704
7,700 Ultratech, Inc.* ................................... 104,104
1,900 VeriFone Holdings, Inc.*............................ 14,269
1,700 Viasat, Inc.*....................................... 39,083
1,800 Wind River Systems, Inc.* .......................... 13,194
-----------
2,704,692
-----------
MATERIALS - 1.64%
2,500 Deltic Timber Corp. ................................ 105,350
600 Haynes International, Inc.* ........................ 13,548
1,900 Silgan Holdings, Inc. .............................. 88,331
2,000 Zoltek Cos., Inc.*.................................. 15,740
-----------
222,969
-----------
TELECOMMUNICATION SERVICES - 0.82%
10,600 Premiere Global Services, Inc.*..................... 111,724
-----------
TOTAL COMMON STOCKS
(Cost $12,351,463) ................................. 12,643,139
Par Value
- ---------
CERTIFICATE OF DEPOSIT - 2.17%
- --------------------------------------------------------------------------------
$ 295,303 State Street Eurodollar
0.010%, due 05/01/09 ............................... 295,303
-----------
TOTAL CERTIFICATE OF DEPOSIT
(Cost $295,303)..................................... 295,303
Shares
- ------
INVESTMENT COMPANY - 4.52%
- --------------------------------------------------------------------------------
613,879 SSgA Prime Money
Market Fund ........................................ 613,879
------------
TOTAL INVESTMENT COMPANY
(Cost $613,879)..................................... 613,879
TOTAL INVESTMENTS - 99.80%
- --------------------------------------------------------------------------------
(Cost $13,260,645**) ........................................... 13,552,321
NET OTHER ASSETS AND LIABILITIES - 0.20%
- --------------------------------------------------------------------------------
26,525
TOTAL NET ASSETS - 100.00%
- --------------------------------------------------------------------------------
$ 13,578,846
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $13,325,740.
(L) Security valued at fair value using methods determined in good faith
by or at the discretion of the Board of Trustees (see Note 2).
(T) Illiquid security.
REIT Real Estate Investment Trust.
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ
from the industry subclassification(s) used for Trust compliance
purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
54
================================================================================
INTERNATIONAL STOCK FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
GEOGRAPHICAL ALLOCATION AS A PERCENTAGE OF NET ASSETS
AS OF APRIL 30, 2009
[CHART OF GEOGRAPHICAL ALLOCATION]
Europe (excluding United Kingdom) 43%
United Kingdom 19%
Japan 14%
Pacific Basin 7%
Cash and Other Net Assets 6%
Other Countries 6%
Latin America 3%
Africa 2%
[END CHART]
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS - 93.61%
- -----------------------------------------------------------------------------------------
ARGENTINA - 0.26%
12,300 Tenaris S.A., ADR......................................... $ 307,746
-----------
AUSTRALIA - 0.12%
26,314 ABC Learning Centres, Ltd. (L)*........................... -
37,718 Fairfax Media, Ltd. ...................................... 32,695
21,635 James Hardie Industries N.V. ............................. 72,800
38,447 Macquarie Infrastructure Group............................ 37,967
-----------
143,462
-----------
AUSTRIA - 0.05%
1,634 Andritz AG ............................................... 56,069
-----------
BELGIUM - 1.55%
54,200 Anheuser-Busch InBev N.V. ................................ 1,673,546
8,146 Arseus N.V. .............................................. 70,663
1,329 EVS Broadcast Equipment S.A. ............................. 61,426
-----------
1,805,635
-----------
BRAZIL - 1.54%
61,930 Banco do Brasil S.A. ..................................... 526,033
22,400 Cia de Concessoes Rodoviarias ............................ 271,381
8,890 Empresa Brasileira de Aeronautica S.A., ADR .............. 144,196
741 Iochpe Maxion S.A. ....................................... 3,846
35,390 JHSF Participacoes S.A. .................................. 28,660
36,667 Redecard S.A. ............................................ 464,812
13,800 Souza Cruz S.A. .......................................... 297,742
7,520 Tam S.A., ADR* ........................................... 50,158
-----------
1,786,828
-----------
CANADA - 1.61%
76,800 TELUS Corp. .............................................. 1,875,053
-----------
CYPRUS - 0.01%
7,903 Prosafe Production Public, Ltd.*.......................... 14,368
-----------
DENMARK - 0.83%
20,200 Novo Nordisk A/S, B Shares................................ 967,882
-----------
EGYPT - 0.49%
3,039 Eastern Tobacco .......................................... 83,607
5,922 Egyptian Co. for Mobile Services ......................... 217,266
9,473 Orascom Construction Industries........................... 270,840
-----------
571,713
-----------
FINLAND - 2.56%
2,478 Konecranes OYJ ........................................... 51,031
190,800 Nokia OYJ................................................. 2,761,859
5,130 Sampo OYJ, A Shares....................................... 96,677
2,450 Vacon PLC ................................................ 71,383
-----------
2,980,950
-----------
FRANCE - 11.02%
37,436 BNP Paribas............................................... 1,995,530
27,500 Bouygues S.A. ............................................ 1,184,367
15,700 Carrefour S.A. ........................................... 642,274
18,000 Danone ................................................... 861,397
55,000 GDF Suez ................................................. 1,988,513
1,272 Neopost S.A. ............................................. 108,276
47,121 Sanofi-Aventis S.A. ...................................... 2,731,455
1,957 Sechilienne-Sidec ........................................ 67,904
62,815 Total S.A. ............................................... 3,189,886
966 Virbac S.A. .............................................. 65,246
-----------
12,834,848
-----------
GERMANY - 8.84%
27,529 Adidas AG................................................. 1,043,429
23,800 Allianz SE ............................................... 2,198,173
15,850 Compugroup Holding AG* ................................... 85,643
2,880 CTS Eventim AG ........................................... 83,911
29,000 Daimler AG ............................................... 1,042,536
70,100 E.ON AG .................................................. 2,380,340
1,078 Fielmann AG .............................................. 66,172
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
55
================================================================================
INTERNATIONAL STOCK FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------------------------------
GERMANY (CONTINUED)
1,927 Gerresheimer AG .......................................... $ 46,575
10,050 Merck KGaA ............................................... 904,396
824 Pfeiffer Vacuum Technology AG ............................ 54,978
34,014 Siemens AG ............................................... 2,298,721
1,741 Wincor Nixdorf AG ........................................ 87,616
-----------
10,292,490
-----------
GREECE - 1.28%
47,890 OPAP S.A. ................................................ 1,486,639
-----------
HONG KONG - 1.04%
176,220 Esprit Holdings, Ltd. .................................... 1,088,009
1,059,000 Shougang Concord International Enterprises Co., Ltd. ..... 118,881
-----------
1,206,890
-----------
HUNGARY - 0.05%
4,233 OTP Bank Nyrt.* .......................................... 55,505
-----------
INDIA - 0.73%
1,716 Jindal Steel & Power, Ltd. ............................... 56,245
34,346 Oil & Natural Gas Corp., Ltd. ............................ 595,830
21,291 Punjab National Bank, Ltd. ............................... 202,974
-----------
855,049
-----------
INDONESIA - 1.35%
88,500 Astra International Tbk PT................................ 150,496
2,111,500 Bank Mandiri Tbk PT ...................................... 553,558
22,750 Telekomunikasi Indonesia Tbk PT, ADR ..................... 653,835
248,683 United Tractors Tbk PT.................................... 211,445
-----------
1,569,334
-----------
IRELAND - 1.71%
70,240 CRH PLC .................................................. 1,848,355
5,129 DCC PLC .................................................. 92,984
19,398 Irish Life & Permanent PLC ............................... 49,581
-----------
1,990,920
-----------
ISLE OF MAN - 0.07%
36,609 Hansard Global PLC ....................................... 85,059
-----------
ISRAEL - 0.49%
57,870 Bank Hapoalim BM*......................................... 134,082
16,703 Delek Automotive Systems, Ltd. ........................... 133,037
35,828 Israel Chemicals, Ltd. ................................... 302,018
-----------
569,137
-----------
ITALY - 3.17%
4,899 Ansaldo STS SpA .......................................... 78,569
67,300 Atlantia SpA ............................................. 1,197,000
107,830 ENI SpA .................................................. 2,349,138
9,232 MARR SpA ................................................. 68,468
-----------
3,693,175
-----------
JAPAN - 14.37%
6,430 Amano Corp. .............................................. 50,719
4,780 ASAHI Holdings, Inc.*..................................... 66,066
67,500 Canon, Inc. .............................................. 2,016,252
46,540 Daito Trust Construction Co., Ltd. ....................... 1,927,386
4,730 Don Quijote Co., Ltd...................................... 71,937
1,370 Hisamitsu Pharmaceutical Co., Inc. ....................... 38,703
63,200 HOYA Corp. ............................................... 1,085,970
144 INPEX Corp. .............................................. 908,384
2,460 Jafco Co., Ltd............................................ 54,550
576 Japan Tobacco, Inc........................................ 1,440,583
4,310 JSR Corp. ................................................ 51,933
287 KDDI Corp. ............................................... 1,284,467
2,500 Keyence Corp. ............................................ 439,702
4,140 Konami Corp. ............................................. 60,910
30,900 Kurita Water Industries, Ltd. ............................ 744,654
5,660 Megane TOP Co., Ltd. ..................................... 53,929
4,350 MISUMI Group, Inc. ....................................... 58,361
77,900 Mitsubishi Corp. ......................................... 1,191,059
66,000 Mitsubishi Estate Co., Ltd................................ 857,412
2,800 Nomura Research Institute, Ltd. .......................... 49,445
4,880 Ohara, Inc. .............................................. 58,752
22,000 Olympus Corp. ............................................ 356,642
4,110 Roland DG Corp. .......................................... 55,100
1,000 Sankyo Co., Ltd........................................... 50,425
39,900 Secom Co., Ltd. .......................................... 1,470,595
5,200 Suruga Bank, Ltd. ........................................ 44,070
2,550 Sysmex Corp. ............................................. 76,428
4,040 T Hasegawa Co., Ltd....................................... 41,766
14,900 T&D Holdings, Inc. ....................................... 440,543
20 THK Co., Ltd. ............................................ 275
18,100 Tokio Marine Holdings, Inc. .............................. 475,592
26,900 Toyota Motor Corp. ....................................... 1,048,653
1,700 Unicharm Petcare Corp. ................................... 45,444
2,210 Union Tool Co. ........................................... 52,699
1,240 USS Co., Ltd. ............................................ 55,873
-----------
16,725,279
-----------
MALAYSIA - 0.19%
8,100 British American Tobacco
Malaysia Bhd.............................................. 101,250
124,000 PLUS Expressways Bhd ..................................... 114,944
-----------
216,194
-----------
MEXICO - 1.01%
11,110 America Movil SAB de C.V., Series L, ADR.................. 364,963
8,830 Desarrolladora Homex SAB de C.V., ADR* ................... 164,150
10,410 Fomento Economico Mexicano SAB de C.V., ADR .............. 294,707
14,600 Grupo Televisa S.A., ADR.................................. 226,008
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
56
================================================================================
INTERNATIONAL STOCK FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------------------------------
MEXICO (CONTINUED)
33,610 Kimberly-Clark de Mexico SAB
de C.V., Class A.......................................... $ 122,601
----------
1,172,429
----------
NETHERLANDS - 0.90%
2,537 Fugro N.V. ............................................... 91,775
1,891 Ten Cate N.V. ............................................ 36,413
49,200 TNT N.V. ................................................. 916,122
----------
1,044,310
----------
NORWAY - 0.15%
1,770 Kongsberg Gruppen AS* .................................... 82,131
9,310 ODIM ASA ................................................. 50,423
6,360 TGS Nopec Geophysical Co. ASA* ........................... 47,702
----------
180,256
----------
PHILIPPINES - 0.47%
11,890 Philippine Long Distance Telephone Co., ADR............... 545,394
----------
RUSSIA - 1.63%
17,250 LUKOIL, ADR............................................... 769,350
15,360 Mobile Telesystems OJSC, ADR ............................. 509,031
9,922 Oriflame Cosmetics S.A., SDR ............................. 435,845
192,279 TNK-BP Holding (L) ....................................... 182,665
----------
1,896,891
----------
SINGAPORE - 1.62%
28,720 Cosco Corp. Singapore, Ltd., ADR ......................... 95,350
58,060 Ezra Holdings, Ltd. ...................................... 36,547
1,009,300 Singapore Telecommunications, Ltd. ....................... 1,748,829
----------
1,880,726
----------
SOUTH AFRICA - 1.57%
18,402 Kumba Iron Ore, Ltd. ..................................... 355,837
13,808 Massmart Holdings, Ltd. .................................. 120,183
48,749 Murray & Roberts Holdings, Ltd. .......................... 275,655
30,037 Nedbank Group, Ltd. ...................................... 309,458
66,602 Pretoria Portland Cement Co., Ltd. ....................... 258,300
160,118 Sanlam, Ltd. ............................................. 301,483
51,665 Truworths International, Ltd. ............................ 208,018
----------
1,828,934
----------
SOUTH KOREA - 1.41%
262 Amorepacific Corp. ....................................... 139,679
2,116 Hite Brewery Co., Ltd. ................................... 301,815
7,103 KB Financial Group, Inc.* ................................ 220,066
1,714 NHN Corp.* ............................................... 207,737
929 Samsung Electronics Co., Ltd., GDR (C).................... 210,883
9,383 Shinhan Financial Group Co., Ltd.*........................ 231,832
13,130 Woongjin Coway Co., Ltd................................... 326,971
----------
1,638,983
----------
SPAIN - 1.19%
133,387 Banco Santander S.A. ..................................... 1,284,254
5,110 Indra Sistemas S.A. ...................................... 101,647
----------
1,385,901
----------
SWEDEN - 1.36%
11,847 Duni AB .................................................. 52,633
8,840 Elekta AB, B Shares ...................................... 103,717
4,567 Getinge AB, B Shares...................................... 53,869
5,540 Indutrade AB ............................................. 74,879
5,500 Loomis AB, Class B ....................................... 47,322
140,460 Telefonaktiebolaget LM Ericsson, B Shares ................ 1,248,065
----------
1,580,485
----------
SWITZERLAND - 8.42%
401 Acino Holding AG ......................................... 59,777
1,770 Bank Sarasin & Cie AG, Series B* ......................... 42,450
468 Burckhardt Compression Holding AG ........................ 60,737
36,200 Credit Suisse Group AG ................................... 1,415,749
55,170 Nestle S.A. .............................................. 1,807,393
43,185 Novartis AG .............................................. 1,643,484
14,180 Roche Holding AG.......................................... 1,796,747
2,541 Swissquote Group Holding S.A. ............................ 106,506
1,400 Tecan Group AG ........................................... 44,809
72,700 UBS AG*................................................... 1,016,805
9,627 Zurich Financial Services AG 1,808,228
----------
9,802,685
----------
TAIWAN - 0.71%
289,889 Advanced Semiconductor
Engineering, Inc. ........................................ 156,017
82,563 HON HAI Precision Industry Co., Ltd. ..................... 238,651
19,000 HTC Corp. ................................................ 257,366
103,154 Taiwan Semiconductor Manufacturing Co., Ltd. ............. 172,165
----------
824,199
----------
THAILAND - 0.19%
19,600 Banpu PCL................................................. 158,513
38,200 Kasikornbank PCL.......................................... 60,704
----------
219,217
----------
TURKEY - 1.10%
63,311 Akbank TAS ............................................... 245,714
26,203 Ford Otomotiv Sanayi AS .................................. 87,753
98,343 Turkcell Iletisim Hizmet AS .............................. 504,797
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
57
================================================================================
INTERNATIONAL STOCK FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Shares Value (Note 2)
- ------ --------------
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------------------------------
TURKEY (CONTINUED)
4,392 Turkcell Iletisim Hizmet AS,
ADR ...................................................... $ 55,778
134,850 Turkiye Is Bankasi, Series C ............................. 389,989
-----------
1,284,031
-----------
UNITED KINGDOM - 18.55%
421,300 BAE Systems PLC........................................... 2,233,625
62,800 BG Group PLC ............................................. 1,015,810
303,491 BP PLC.................................................... 2,167,084
39,220 British American Tobacco PLC ............................. 951,304
14,500 Cairn Energy PLC* ........................................ 459,857
6,584 Charter International PLC ................................ 54,467
3,132 Chemring Group PLC ....................................... 97,753
10,052 Dignity PLC .............................................. 78,396
100,420 GlaxoSmithKline PLC ...................................... 1,558,936
47,864 Hampson Industries PLC ................................... 70,126
27,503 Healthcare Locums PLC .................................... 60,646
291,283 HSBC Holdings PLC......................................... 2,071,291
20,052 IG Group Holdings PLC .................................... 65,359
88,748 Imperial Tobacco Group PLC ............................... 2,037,056
7,520 Intertek Group PLC ....................................... 113,626
92,508 National Grid PLC......................................... 772,815
299,100 Prudential PLC ........................................... 1,740,675
25,600 Reckitt Benckiser Group PLC .............................. 1,010,405
61,080 Sepura, Ltd. ............................................. 34,349
263,400 Tesco PLC................................................. 1,314,425
93,100 Unilever PLC ............................................. 1,826,946
5,937 Victrex PLC .............................................. 47,182
985,892 Vodafone Group PLC ....................................... 1,819,401
-----------
21,601,534
-----------
TOTAL COMMON STOCKS
(Cost $140,554,139) ...................................... 108,976,200
PREFERRED STOCKS - 0.63%
- -----------------------------------------------------------------------------------------
BRAZIL - 0.59%
18,503 AES Tiete S.A............................................. 153,248
17,844 Cia Vale do Rio Doce, Class A ............................ 250,258
7,400 Eletropaulo Metropolitana Eletricidade
de Sao Paulo S.A., B Shares............................. 95,713
19,300 Klabin S.A. .............................................. 27,441
21,430 Suzano Papel e Celulose S.A., Class A .................... 137,062
1,400 Usinas Siderurgicas de Minas Gerais S.A., A Shares ....... 20,742
-----------
684,464
-----------
GERMANY - 0.04%
1,079 Fuchs Petrolub AG......................................... 52,615
-----------
TOTAL PREFERRED STOCKS
(Cost $996,526)........................................... 737,079
Par Value
- ---------
CERTIFICATE OF DEPOSIT - 0.28%
- -----------------------------------------------------------------------------------------
UNITED STATES - 0.28%
$325,393 State Street Eurodollar 0.010%, due 05/01/09 ............. 325,393
-----------
TOTAL CERTIFICATE OF DEPOSIT
(Cost $325,393)........................................... 325,393
Shares
- ------
INVESTMENT COMPANY - 4.46%
- -----------------------------------------------------------------------------------------
UNITED STATES - 4.46%
5,191,743 SSgA Prime Money Market
Fund...................................................... 5,191,743
-----------
TOTAL INVESTMENT COMPANY
(Cost $5,191,743) ........................................ 5,191,743
TOTAL INVESTMENTS - 98.98%
- -----------------------------------------------------------------------------------------
(Cost $147,067,801**) ................................................. 115,230,415
NET OTHER ASSETS AND LIABILITIES - 1.02%
- -----------------------------------------------------------------------------------------
1,192,332
TOTAL NET ASSETS - 100.00%
- -----------------------------------------------------------------------------------------
$116,422,747
- --------------------------------------------------------------------------------
* Non-income producing.
** Aggregate cost for Federal tax purposes was $149,005,638.
(C) Security sold within terms of a private placement memorandum exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in that program or other
"qualified institutional investors." The securities have been
determined to be liquid under guidelines established by the Board of
Trustees.
(L) Security valued at fair value using methods determined in good faith
by or at the discretion of the Board of Trustees (see Note 2).
ADR American Depositary Receipt.
GDR Global Depositary Receipt.
PLC Public Limited Company.
SDR Swedish Depositary Receipt.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
58
================================================================================
INTERNATIONAL STOCK FUND PORTFOLIO OF INVESTMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
OTHER INFORMATION:
Industry Concentration
% of Net Assets
---------------
Oil, Gas & Consumable Fuels 10.2%
Pharmaceuticals 8.4%
Commercial Banks 6.8%
Insurance 6.1%
Net Other Assets & Liabilities 5.8%
Food Products 4.4%
Wireless Telecommunication Services 4.4%
Tobacco 4.2%
Diversified Telecommunication Services 3.8%
Communications Equipment 3.5%
Electrical Equipment 3.3%
Electric Utilities 2.9%
Real Estate Management & Development 2.4%
Commercial Services & Supplies 2.4%
Capital Markets 2.3%
Aerospace & Defense 2.3%
Automobiles 2.0%
Distributors 2.0%
Beverages 2.0%
Construction Materials 1.9%
Office Electronics 1.8%
Electronic Equipment & Instruments 1.8%
Gas Utilities 1.7%
Industrial Conglomerates 1.3%
Hotels, Restaurants & Leisure 1.3%
Food & Staples Retailing 1.3%
Textiles, Apparel & Luxury Goods 1.1%
Household Products 1.0%
Metals & Mining 1.0%
Air Freight & Logistics 0.8%
IT Services 0.7%
Diversified Financial Services 0.5%
Personal Products 0.5%
Machinery 0.5%
Construction & Engineering 0.5%
Transportation Infrastructure 0.4%
Specialty Retail 0.4%
Chemicals 0.3%
Computers & Peripherals 0.3%
Health Care Equipment & Supplies 0.3%
Semiconductors & Semiconductor Equipment 0.3%
Media 0.2%
Software 0.2%
Paper & Forest Products 0.1%
Household Durables 0.1%
Energy Equipment & Services 0.1%
Leisure Equipment & Products 0.1%
Multiline Retail 0.1%
Multi-Utilities 0.1%
Health Care Providers & Services 0.1%
Marine* 0.0%
Auto Components* 0.0%
------
100.0%
======
* Rounds to 0.0%
The industry classification method used for purposes of this report's
allocation charts and portfolio of investments schedules may differ from the
industry subclassification(s) used for Trust compliance purposes.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
59
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES AS OF APRIL 30, 2009 (UNAUDITED)
- --------------------------------------------------------------------------------
CONSERVATIVE MODERATE AGGRESSIVE
ALLOCATION ALLOCATION ALLOCATION
FUND FUND FUND
===================================================================================================================================
ASSETS:
Investments:
Investments at cost
Unaffiliated issuers $10,373,017 $ 24,921,012 $ 9,748,792
Affiliated issuers(3) 22,494,942 64,189,859 21,510,096
Net unrealized depreciation
Unaffiliated issuers (1,122,022) (4,686,774) (2,658,135)
Affiliated issuers(3) (2,877,507) (13,568,887) (5,626,888)
--------------------------------------------------
Total investments at value 28,868,430 70,855,210 22,973,865
Receivables:
Investments sold 4,403 - -
Fund shares sold 38,582 233,516 69,715
Dividends and interest 13 25 14
Due from Adviser, net 4,138 - 8,517
Prepaid insurance and registration fees 32,350 37,334 32,486
--------------------------------------------------
Total Assets 28,947,916 71,126,085 23,084,597
--------------------------------------------------
LIABILITIES:
Payables:
Investments purchased - 158,306 13,775
Fund shares repurchased 41,791 31,213 20,991
Due to Adviser, net - 3,570 -
Administration and transfer agent fees 7,973 14,082 11,013
Distribution fees - Class B 3,121 10,254 3,760
Distribution fees - Class C 1,283 1,338 134
Shareholder servicing fees 5,690 14,023 4,469
Trustees' fees 1,251 3,168 958
Accrued expenses and other payables 16,325 20,290 15,807
--------------------------------------------------
Total Liabilities 77,434 256,244 70,907
--------------------------------------------------
NET ASSETS $28,870,482 $ 70,869,841 $23,013,690
==================================================
NET ASSETS CONSIST OF:
Paid-in capital $35,971,879 $100,669,041 $35,582,299
Accumulated undistributed (distribution in excess of) net investment income 29,113 259,958 149,755
Accumulated net realized loss on investments sold and foreign
currency related transactions (3,130,981) (11,803,498) (4,433,341)
Net unrealized depreciation of investments (including appreciation
(depreciation) of foreign currency related transactions) (3,999,529) (18,255,660) (8,285,023)
--------------------------------------------------
NET ASSETS $28,870,482 $ 70,869,841 $23,013,690
==================================================
CLASS A SHARES:
Net Assets $21,264,854 $ 51,433,442 $16,422,323
Shares of beneficial interest outstanding 2,517,057 6,709,665 2,393,139
NET ASSET VALUE and redemption price per share(1) $ 8.45 $ 7.67 $ 6.86
Sales charge of offering price(2) 0.52 0.47 0.42
--------------------------------------------------
Maximum offering price per share $ 8.97 $ 8.14 $ 7.28
==================================================
CLASS B SHARES:
Net Assets $ 5,349,300 $ 17,188,241 $ 6,349,099
Shares of beneficial interest outstanding 632,956 2,247,682 929,591
NET ASSET VALUE and redemption price per share(1) $ 8.45 $ 7.65 $ 6.83
==================================================
CLASS C SHARES:
Net Assets $ 2,256,328 $ 2,248,158 $ 242,268
Shares of beneficial interest outstanding 266,840 293,758 35,428
NET ASSET VALUE and redemption price per share(1) $ 8.46 $ 7.65 $ 6.84
==================================================
- -------------------------------------------------
(1) If applicable, redemption price per share may be reduced by a contingent
deferred sales charge and/or redemption fee.
(2) Sales charge of offering price is 5.75% for the Conservative Allocation,
Moderate Allocation, Aggressive Allocation Funds.
(3) See Note 10 for information on affiliated issuers.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
60
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES AS OF APRIL 30, 2009 (UNAUDITED)
- --------------------------------------------------------------------------------
CASH HIGH
RESERVES INCOME
FUND BOND FUND FUND
===================================================================================================================================
ASSETS:
Investments:
Investments at cost
Unaffiliated issuers $24,038,381 $182,813,290 $ 90,033,636
Net unrealized depreciation
Unaffiliated issuers - (184,476) (901,075)
--------------------------------------------------
Total investments at value 24,038,381 182,628,814 89,132,561
Receivables:
Investments sold - 161,280 255,454
Fund shares sold 209,034 355,164 277,996
Dividends and interest 81,172 1,457,840 1,642,691
Due from Adviser, net 6,656 - -
Prepaid insurance and registration fees 13,340 16,081 13,349
--------------------------------------------------
Total Assets 24,348,583 184,619,179 91,322,051
--------------------------------------------------
LIABILITIES:
Payable to custodian - 7,916 27,129
Payables:
Investments purchased - - 1,889,839
Fund shares repurchased 133,938 21,203 2,521
Due to Adviser, net - 64,036 34,509
Administration and transfer agent fees 1,746 21,165 10,837
Distribution fees - Class B 3,279 7,732 3,062
Shareholder servicing fees - 11,002 5,110
Trustees' fees 964 7,629 3,099
Accrued expenses and other payables 14,859 28,716 25,049
--------------------------------------------------
Total Liabilities 154,786 169,399 2,001,155
--------------------------------------------------
NET ASSETS $24,193,797 $184,449,780 $ 89,320,896
==================================================
NET ASSETS CONSIST OF:
Paid-in capital $24,194,528 $183,561,202 $103,726,829
Accumulated undistributed (distribution in excess of) net investment income (731) 8,685 28,978
Accumulated net realized gain (loss) on investments sold and foreign
currency related transactions - 1,064,369 (13,533,836)
Net unrealized depreciation of investments (including appreciation
(depreciation) of foreign currency related transactions) - (184,476) (901,075)
--------------------------------------------------
NET ASSETS $24,193,797 $184,449,780 $ 89,320,896
==================================================
CLASS A SHARES:
Net Assets $19,027,513 $ 41,180,545 $ 21,064,177
Shares of beneficial interest outstanding 19,029,771 4,160,667 3,458,671
NET ASSET VALUE and redemption price per share(1) $ 1.00 $ 9.90 $ 6.09
Sales charge of offering price(2) - 0.47 0.29
--------------------------------------------------
Maximum offering price per share $ 1.00 $ 10.37 $ 6.38
==================================================
CLASS B SHARES:
Net Assets $ 5,166,284 $ 12,350,477 $ 5,103,173
Shares of beneficial interest outstanding 5,169,121 1,247,376 828,184
NET ASSET VALUE and redemption price per share(1) $ 1.00 $ 9.90 $ 6.16
==================================================
CLASS Y SHARES(3):
Net Assets $130,918,758 $ 63,153,546
Shares of beneficial interest outstanding 13,233,473 10,386,472
NET ASSET VALUE and redemption price per share(1) $ 9.89 $ 6.08
==================================================
- -------------------------------------------------
(1) If applicable, redemption price per share may be reduced by a contingent
deferred sales charge and/or redemption fee.
(2) There is a maximum sales charge of 4.50% on the purchase of shares of the
Bond and High Income Funds.
(3) Class Y shares are not available for the Cash Reserves Fund.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
61
================================================================================
STATEMENTS OF ASSETS AND LIABILITIES AS OF APRIL 30, 2009 (UNAUDITED)
- --------------------------------------------------------------------------------
DIVERSIFIED LARGE CAP
INCOME FUND VALUE FUND
===================================================================================================================================
ASSETS:
Investments:
Investments at cost
Unaffiliated issuers $ 94,654,990 $148,940,575
Net unrealized appreciation (depreciation)
Unaffiliated issuers (11,047,841) (31,242,326)
--------------------------------
Total investments at value 83,607,149 117,698,249
Foreign currency (cost of $429,268) (Note 2) - -
Receivables:
Investments sold 403,467 147,793
Fund shares sold 15,536 172,798
Dividends and interest 677,711 234,585
Prepaid insurance and registration fees 14,058 15,918
Other assets - 1,287
--------------------------------
Total Assets 84,717,921 118,270,630
--------------------------------
LIABILITIES:
Payable to custodian 6,511 -
Payables:
Investments purchased 303,603 -
Fund shares repurchased 76,148 27,527
Due to Adviser, net 27,041 45,071
Administration and transfer agent fees 34,659 41,679
Distribution fees - Class B 12,407 6,031
Shareholder servicing fees 20,710 11,536
Trustees' fees 4,540 5,707
Accrued expenses and other payables 24,441 27,500
--------------------------------
Total Liabilities 510,060 165,051
--------------------------------
NET ASSETS $ 84,207,861 $118,105,579
================================
NET ASSETS CONSIST OF:
Paid-in capital $108,704,875 $170,634,861
Accumulated undistributed (distribution in excess of) net investment income 23,963 1,099,791
Accumulated net realized loss on investments sold and foreign
currency related transactions (13,473,136) (22,386,747)
Net unrealized appreciation (depreciation) of investments (including
appreciation (depreciation) of foreign currency related transactions) (11,047,841) (31,242,326)
--------------------------------
NET ASSETS $ 84,207,861 $118,105,579
================================
CLASS A SHARES:
Net Assets $ 64,250,519 $ 47,348,510
Shares of beneficial interest outstanding 6,934,896 5,259,515
NET ASSET VALUE and redemption price per share(1) $ 9.26 $ 9.00
Sales charge of offering price(2) 0.56 0.55
--------------------------------
Maximum offering price per share $ 9.82 $ 9.55
================================
CLASS B SHARES:
Net Assets $ 19,957,342 $ 9,861,508
Shares of beneficial interest outstanding 2,143,609 1,110,947
NET ASSET VALUE and redemption price per share(1) $ 9.31 $ 8.88
================================
CLASS Y SHARES(3):
Net Assets $ 60,895,561
Shares of beneficial interest outstanding 6,764,776
NET ASSET VALUE and redemption price per share(1) $ 9.00
================================
- -------------------------------------------------
(1) If applicable, redemption price per share may be reduced by a contingent
deferred sales charge and/or redemption fee.
(2) Sales charge of offering price is 5.75% for the Diversified Income, Large
Cap Value, Large Cap Growth, Mid Cap Value, Mid Cap Growth, Small Cap Value,
Small Cap Growth, and International Stock Funds.
(3) Class Y shares are not available for the Diversified Income Fund.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
62
================================================================================
- --------------------------------------------------------------------------------
LARGE CAP MID CAP MID CAP SMALL CAP SMALL CAP INTERNATIONAL
GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND GROWTH FUND STOCK FUND
===============================================================================================
$138,740,520 $ 35,839,950 $ 36,437,395 $20,836,053 $ 13,260,645 $147,067,801
(7,753,693) (7,044,177) 1,117,444 (3,607,161) 291,676 (31,837,386)
- -----------------------------------------------------------------------------------------------
130,986,827 28,795,773 37,554,839 17,228,892 13,552,321 115,230,415
- - - - - 431,445
243,260 154,953 1,299,545 104,804 - 1,240,163
226,865 26,791 60,138 49,185 41,079 295,706
144,121 35,374 12,091 14,657 3,875 658,613
15,396 19,847 17,511 11,507 13,830 14,119
1,128 257 - - - 110,555
- -----------------------------------------------------------------------------------------------
131,617,597 29,032,995 38,944,124 17,409,045 13,611,105 117,981,016
- -----------------------------------------------------------------------------------------------
- - - - - -
659,207 145,628 604,167 - - 1,343,407
39,378 5,879 3,979 - 3,076 30,669
59,668 5,398 13,924 7,237 3,537 79,228
37,745 18,734 18,204 5,347 5,739 21,208
6,110 3,587 2,353 40 34 2,745
9,824 5,042 3,583 215 74 4,420
5,532 1,466 1,754 669 635 4,806
28,202 20,848 20,900 18,094 19,164 71,786
- -----------------------------------------------------------------------------------------------
845,666 206,582 668,864 31,602 32,259 1,558,269
- -----------------------------------------------------------------------------------------------
$130,771,931 $ 28,826,413 $ 38,275,260 $17,377,443 $ 13,578,846 $116,422,747
===============================================================================================
$175,763,337 $ 47,658,818 $ 62,482,470 $24,140,814 $ 24,188,217 $163,462,141
412,374 91,617 (78,220) 34,917 (8,746) 1,140,976
(37,650,087) (11,879,845) (25,246,434) (3,191,127) (10,892,301) (16,346,319)
(7,753,693) (7,044,177) 1,117,444 (3,607,161) 291,676 (31,834,051)
- -----------------------------------------------------------------------------------------------
$130,771,931 $ 28,826,413 $ 38,275,260 $17,377,443 $ 13,578,846 $116,422,747
===============================================================================================
$ 38,921,312 $ 19,502,124 $ 14,865,121 $ 1,054,558 $ 325,572 $ 17,887,538
3,432,908 2,655,360 3,522,871 154,350 58,438 2,284,843
$ 11.34 $ 7.34 $ 4.22 $ 6.83 $ 5.57 $ 7.83
0.69 0.45 0.26 0.42 0.34 0.48
- -----------------------------------------------------------------------------------------------
$ 12.03 $ 7.79 $ 4.48 $ 7.25 $ 5.91 $ 8.31
===============================================================================================
$ 10,011,538 $ 5,953,704 $ 4,119,246 $ 71,666 $ 59,510 $ 4,604,922
951,360 856,843 1,045,799 10,535 10,866 596,310
$ 10.52 $6.95 $ 3.94 $ 6.80 $ 5.48 $ 7.72
===============================================================================================
$ 81,839,081 $ 3,370,585 $ 19,290,893 $16,251,219 $ 13,193,764 $ 93,930,287
7,182,655 453,365 4,535,704 2,387,754 2,355,971 11,999,933
$ 11.39 $ 7.43 $ 4.25 $ 6.81 $ 5.60 $ 7.83
===============================================================================================
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
63
================================================================================
STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED APRIL 30, 2009 (UNAUDITED)
- --------------------------------------------------------------------------------
CONSERVATIVE MODERATE AGGRESSIVE
ALLOCATION ALLOCATION ALLOCATION
FUND FUND FUND
=========================================================================================================================
INVESTMENT INCOME:
Interest $ 450 $ 444 $ 500
Dividends
Unaffiliated issuers 225,454 355,106 96,568
Affiliated issuers(1) 377,578 870,948 221,047
----------------------------------------------
Total investment income 603,482 1,226,498 318,115
----------------------------------------------
EXPENSES:
Management fees 27,044 65,608 19,961
Administration and transfer agent fees 47,848 79,612 62,361
Registration expenses 4,105 6,373 4,724
Custodian and accounting fees 8,879 8,898 8,892
Professional fees 9,169 10,365 8,950
Reports to shareholder expense 2,150 5,086 1,423
Trustees' fees 1,980 4,815 1,418
Distribution fees - Class B 19,298 61,431 21,224
Distribution fees - Class C 8,105 7,269 762
Shareholder servicing fees - Class A 24,670 59,110 17,622
Shareholder servicing fees - Class B 6,433 20,477 7,075
Shareholder servicing fees - Class C 2,702 2,423 254
Compliance expense 1,875 1,875 1,875
Amortization of offering costs 5,091 5,091 5,091
Other expenses 1,003 2,154 930
----------------------------------------------
Total expenses before reimbursement/waiver 170,352 340,587 162,562
Less reimbursement/waiver (48,305) (42,753) (70,780)
----------------------------------------------
Total expenses net of reimbursement/waiver 122,047 297,834 91,782
----------------------------------------------
NET INVESTMENT INCOME 481,435 928,664 226,333
----------------------------------------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS
Net realized loss on investments (including net realized gain
(loss) on foreign currency related transactions)
Unaffiliated issuers (1,288,866) (5,284,117) (2,014,550)
Affiliated issuers(1) (628,487) (1,450,260) (482,588)
Capital gain distributions received from underlying funds
Unaffiliated issuers 95,539 154,973 20,160
Affiliated issuers(1) 63,581 265,243 105,611
Net change in unrealized appreciation on investments
(including a net unrealized appreciation (depreciation) on
foreign currency related transactions) 2,017,611 5,046,334 1,526,749
----------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 259,378 (1,267,827) (844,618)
----------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 740,813 $ (339,163) $ (618,285)
==============================================
- -------------------------------------------------
(1) See Note 10 for information on affiliated issuers.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
64
================================================================================
STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED APRIL 30, 2009 (UNAUDITED)
- --------------------------------------------------------------------------------
CASH HIGH
RESERVES INCOME
FUND BOND FUND FUND
=====================================================================================================================
Investment Income:
Interest $ 62,335 $ 3,743,908 $ 3,193,805
Securities lending income - - 843
-----------------------------------------
Total investment income 62,335 3,743,908 3,194,648
-----------------------------------------
EXPENSES:
Management fees 44,298 433,039 201,916
Administration and transfer agent fees 20,633 112,115 56,396
Registration expenses 11,802 9,605 10,106
Custodian and accounting fees 7,513 12,833 12,906
Professional fees 8,385 14,562 13,683
Reports to shareholder expense 1,709 14,289 5,085
Trustees' fees 1,533 12,387 4,584
Distribution fees - Class B 18,806 53,039 19,296
Shareholder servicing fees - Class A - 49,547 22,917
Shareholder servicing fees - Class B - 17,680 6,432
Compliance expense 3,015 3,015 3,015
Other expenses 720 5,183 1,851
-----------------------------------------
Total expenses before reimbursement/waiver 118,414 737,294 358,187
Less reimbursement (38,698) (52,852) (34,246)
Less waiver(1) (29,141) - -
-----------------------------------------
Total expenses net of reimbursement/waiver 50,575 684,442 323,941
-----------------------------------------
NET INVESTMENT INCOME 11,760 3,059,466 2,870,707
-----------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments (including net realized gain
(loss) on foreign currency related transactions)
Unaffiliated issuers - 1,635,964 (3,996,546)
Net change in unrealized appreciation on investments
(including a net unrealized appreciation (depreciation) on
foreign currency related transactions) - 5,670,162 11,641,535
-----------------------------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS - 7,306,126 7,644,989
-----------------------------------------
NET INCREASE IN NET ASSETS FROM OPERATIONS $ 11,760 $10,365,592 $10,515,696
=========================================
- -------------------------------------------------
(1) Waiver includes management fees of $13,302 and distribution fees of $15,839.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
65
================================================================================
STATEMENTS OF OPERATIONS FOR THE PERIOD ENDED APRIL 30, 2009 (UNAUDITED)
- --------------------------------------------------------------------------------
DIVERSIFIED LARGE CAP
INCOME FUND VALUE FUND
======================================================================================================================
INVESTMENT INCOME:
Interest $ 1,645,369 $ 11,455
Dividends
Unaffiliated issuers 861,677 2,271,489
Less: Foreign taxes withheld - (455)
Securities lending income 1,185 2,848
------------------------------
Total investment income 2,508,231 2,285,337
------------------------------
EXPENSES:
Management fees 286,109 306,766
Administration and transfer agent fees 147,165 174,833
Registration expenses 14,396 11,974
Custodian and accounting fees 13,298 11,623
Professional fees 12,692 13,546
Reports to shareholder expense 7,219 8,931
Trustees' fees 6,807 8,456
Distribution fees - Class B 86,872 42,449
Shareholder servicing fees - Class A 81,084 60,003
Shareholder servicing fees - Class B 28,957 14,150
Compliance expense 3,015 3,015
Other expenses 2,907 3,636
------------------------------
Total expenses before reimbursement/waiver 690,521 659,382
Less reimbursement/waiver (119,863) (13,412)
------------------------------
Total expenses net of reimbursement/waiver 570,658 645,970
------------------------------
NET INVESTMENT INCOME (LOSS) 1,937,573 1,639,367
------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investments (including net realized gain
(loss) on foreign currency related transactions)
Unaffiliated issuers (9,574,879) (11,849,812)
Net change in unrealized appreciation (depreciation) on investments
(including a net unrealized appreciation (depreciation) on foreign
currency related transactions)(1) 3,436,889 (6,224,857)
------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (6,137,990) (18,074,669)
------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $(4,200,417) $(16,435,302)
==============================
- -------------------------------------------------
(1) Net of deferred foreign capital gains taxes of $1,623 for the International
Stock Fund.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
66
================================================================================
- --------------------------------------------------------------------------------
LARGE CAP MID CAP MID CAP SMALL CAP SMALL CAP INTERNATIONAL
GROWTH FUND VALUE FUND GROWTH FUND VALUE FUND GROWTH FUND STOCK FUND
======================================================================================================================
$ 14,790 $ 5,554 $ 3,753 $ 2,887 $ 1,909 $ 23,738
1,038,051 411,680 132,912 166,847 61,777 2,360,580
(957) (153) (100) - - (213,380)
2,567 591 629 - - 507
- ----------------------------------------------------------------------------------------------------------------------
1,054,451 417,672 137,194 169,734 63,686 2,171,445
- ----------------------------------------------------------------------------------------------------------------------
429,935 128,294 118,017 70,353 57,540 542,589
170,070 79,547 72,689 27,320 26,650 96,430
11,648 5,882 6,802 17,340 13,766 12,007
11,167 13,657 9,426 9,646 12,441 144,728
13,387 11,226 10,677 10,473 10,421 16,876
8,434 1,809 1,926 942 655 7,982
8,062 1,978 2,202 959 803 7,387
40,051 23,993 14,316 233 156 18,658
44,008 22,089 15,552 1,007 299 21,331
13,350 7,998 4,772 78 52 6,219
3,015 3,015 3,015 3,015 3,015 3,015
3,549 1,214 1,460 668 685 2,976
- ----------------------------------------------------------------------------------------------------------------------
756,676 300,702 260,854 142,034 126,483 880,198
(114,771) (91,496) (45,440) (52,768) (54,051) (136,166)
- ----------------------------------------------------------------------------------------------------------------------
641,905 209,206 215,414 89,266 72,432 744,032
- ----------------------------------------------------------------------------------------------------------------------
412,546 208,466 (78,220) 80,468 (8,746) 1,427,413
- ----------------------------------------------------------------------------------------------------------------------
(18,436,558) (5,671,229) (15,000,904) (1,480,829) (6,606,810) (14,819,234)
21,471,595 4,336,693 16,326,529 851,774 5,343,000 10,381,766
- ----------------------------------------------------------------------------------------------------------------------
3,035,037 (1,334,536) 1,325,625 (629,055) (1,263,810) (4,437,468)
- ----------------------------------------------------------------------------------------------------------------------
$ 3,447,583 $(1,126,070) $ 1,247,405 $ (548,587) $(1,272,556) $ (3,010,055)
======================================================================================================================
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
67
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND
=================================
SIX MONTHS FOR THE
ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008
===========================================================================================================================
NET ASSETS AT BEGINNING OF PERIOD $27,457,417 $20,175,979
-------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) 481,435 688,461
Net realized loss (1,758,233) (1,310,854)
Net change in unrealized appreciation (depreciation) 2,017,611 (6,508,819)
-------------------------------
Net increase (decrease) in net assets from operations 740,813 (7,131,212)
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (768,349) (399,196)
Class B (158,215) (77,260)
Class C (67,283) -
Net realized gains
Class A - (49,980)
Class B - (13,959)
-------------------------------
TOTAL DISTRIBUTIONS (993,847) (540,395)
CAPITAL STOCK TRANSACTIONS:
CLASS A SHARES
Shares sold 4,554,656 15,611,812
Issued to shareholders in reinvestment of distributions 762,670 444,548
Shares redeemed (3,621,924) (6,646,140)
-------------------------------
Net increase from capital stock transactions 1,695,402 9,410,220
-------------------------------
CLASS B SHARES
Shares sold 1,134,709 4,473,474
Issued to shareholders in reinvestment of distributions 156,151 89,168
Shares redeemed (1,402,280) (1,688,492)
-------------------------------
Net increase (decrease) from capital stock transactions (111,420) 2,874,150
-------------------------------
CLASS C SHARES
Shares sold 563,228 2,945,126
Issued to shareholders in reinvestment of distributions 67,056 -
Shares redeemed (548,167) (276,451)
-------------------------------
Net increase from capital stock transactions 82,117 2,668,675
-------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,413,065 7,281,438
-------------------------------
NET ASSETS AT END OF PERIOD $28,870,482 $27,457,417
===============================
Undistributed (distribution in excess of) net investment income $ 29,113 $ 541,525
===============================
CAPITAL SHARE TRANSACTIONS:
CLASS A SHARES
Shares sold 556,155 1,506,343
Issued to shareholders in reinvestment of distributions 91,304 41,781
Shares redeemed (446,888) (669,741)
-------------------------------
Net increase from capital stock transactions 200,571 878,383
-------------------------------
CLASS B SHARES
Shares sold 136,813 436,991
Issued to shareholders in reinvestment of distributions 18,651 8,372
Shares redeemed (171,708) (173,117)
-------------------------------
Net increase (decrease) from capital stock transactions (16,244) 272,246
-------------------------------
CLASS C SHARES(1)
Shares sold 67,938 288,170
Issued to shareholders in reinvestment of distributions 8,008 -
Shares redeemed (68,104) (29,172)
-------------------------------
Net increase from capital stock transactions 7,842 258,998
===============================
- -------------------------------------------------
(1) Class C shares commenced investment operations on February 29, 2008.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
68
================================================================================
- --------------------------------------------------------------------------------
MODERATE ALLOCATION FUND AGGRESSIVE ALLOCATION FUND
================================= ===================================
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31, APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008 (UNAUDITED) 2008
=============================================================================
$70,203,036 $ 76,137,458 $21,254,380 $ 26,058,356
- -----------------------------------------------------------------------------
928,664 982,885 226,333 (40,895)
(6,314,161) (5,126,914) (2,371,367) (1,831,708)
5,046,334 (27,654,200) 1,526,749 (12,109,445)
- -----------------------------------------------------------------------------
(339,163) (31,798,229) (618,285) (13,982,048)
- -----------------------------------------------------------------------------
(983,109) (878,404) (76,578) (205,602)
(218,872) (161,220) - (26,790)
(23,964) - - -
- (377,095) - (151,810)
- (135,542) - (60,949)
- -----------------------------------------------------------------------------
(1,225,945) (1,552,261) (76,578) (445,151)
8,338,708 35,265,296 3,267,958 11,668,989
978,163 1,249,257 76,555 357,240
(7,054,897) (18,328,636) (1,404,596) (5,648,103)
- -----------------------------------------------------------------------------
2,261,974 18,185,917 1,939,917 6,378,126
- -----------------------------------------------------------------------------
2,874,661 10,912,216 1,258,588 4,238,934
217,628 294,553 - 87,324
(3,245,708) (4,891,467) (765,799) (1,409,196)
- -----------------------------------------------------------------------------
(153,419) 6,315,302 492,789 2,917,062
- -----------------------------------------------------------------------------
564,545 3,234,664 74,826 457,990
19,723 - - -
(460,910) (319,815) (53,359) (129,955)
- -----------------------------------------------------------------------------
123,358 2,914,849 21,467 328,035
- -----------------------------------------------------------------------------
666,805 (5,934,422) 1,759,310 (4,803,976)
- -----------------------------------------------------------------------------
$70,869,841 $ 70,203,036 $23,013,690 $ 21,254,380
=============================================================================
$ 259,958 $ 557,239 $ 149,755 $ -
=============================================================================
1,144,606 3,363,454 514,455 1,108,171
129,046 111,940 11,358 30,559
(979,082) (1,825,199) (223,295) (549,883)
- -----------------------------------------------------------------------------
294,570 1,650,195 302,518 588,847
- -----------------------------------------------------------------------------
392,813 1,049,059 201,323 403,281
28,712 26,370 - 7,470
(447,601) (489,243) (121,576) (141,655)
- -----------------------------------------------------------------------------
(26,076) 586,186 79,747 269,096
- -----------------------------------------------------------------------------
79,635 309,434 11,557 45,361
2,598 - - -
(63,928) (33,981) (8,321) (13,169)
- -----------------------------------------------------------------------------
18,305 275,453 3,236 32,192
=============================================================================
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
69
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
CASH RESERVES FUND
=================================
SIX MONTHS FOR THE
ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008
===========================================================================================================================
NET ASSETS AT BEGINNING OF PERIOD $19,993,920 $ 15,273,440
-------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income 11,760 345,262
Net realized gain (loss) - 4,965
Net change in unrealized appreciation (depreciation) - -
-------------------------------
Net increase (decrease) in net assets from operations 11,760 350,227
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (11,307) (303,598)
Class B (1,184) (46,606)
Class Y - -
Net realized gains
Class A - (125)
Class B - (27)
-------------------------------
TOTAL DISTRIBUTIONS (12,491) (350,356)
CAPITAL STOCK TRANSACTIONS:
CLASS A SHARES
Shares sold 11,949,027 15,638,721
Issued to shareholders in reinvestment of distributions 10,817 293,901
Shares redeemed (8,271,392) (13,087,180)
-------------------------------
Net increase (decrease) from capital stock transactions 3,688,452 2,845,442
-------------------------------
CLASS B SHARES
Shares sold 3,232,180 5,279,879
Issued to shareholders in reinvestment of distributions 406 44,083
Shares redeemed (2,720,430) (3,448,795)
-------------------------------
Net increase (decrease) from capital stock transactions 512,156 1,875,167
-------------------------------
CLASS Y SHARES
Shares sold - -
Issued to shareholders in reinvestment of distributions - -
Shares redeemed - -
-------------------------------
Net increase from capital stock transactions - -
-------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,199,877 4,720,480
-------------------------------
NET ASSETS AT END OF PERIOD $24,193,797 $ 19,993,920
===============================
Undistributed (distribution in excess of) net investment income $ (731) $ -
===============================
CAPITAL SHARE TRANSACTIONS:
CLASS A SHARES
Shares sold 11,949,027 15,638,721
Issued to shareholders in reinvestment of distributions 10,817 293,901
Shares redeemed (8,271,392) (13,087,180)
-------------------------------
Net increase (decrease) from capital stock transactions 3,688,452 2,845,442
-------------------------------
CLASS B SHARES
Shares sold 3,232,180 5,279,879
Issued to shareholders in reinvestment of distributions 406 44,083
Shares redeemed (2,720,430) (3,448,795)
-------------------------------
Net increase (decrease) from capital stock transactions 512,156 1,875,167
-------------------------------
CLASS Y SHARES(1)
Shares sold - -
Issued to shareholders in reinvestment of distributions - -
Shares redeemed - -
-------------------------------
Net increase from capital stock transactions - -
===============================
- -------------------------------------------------
(1) Class Y shares are not available for the Cash Reserves and Diversified
Income Funds.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
70
================================================================================
- --------------------------------------------------------------------------------
BOND FUND HIGH INCOME FUND DIVERSIFIED INCOME FUND
================================= =================================== ===============================
SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31, APRIL 30, 2009 OCTOBER 31, APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008 (UNAUDITED) 2008 (UNAUDITED) 2008
===================================================================================================================
$158,865,643 $116,319,967 $56,777,753 $ 68,980,447 $ 98,250,592 $147,834,569
- -------------------------------------------------------------------------------------------------------------------
3,059,466 5,390,588 2,870,707 4,848,528 1,937,573 4,602,628
1,635,964 624,098 (3,996,546) (4,598,445) (9,574,879) (3,745,402)
5,670,162 (5,684,534) 11,641,535 (12,227,122) 3,436,889 (20,987,228)
- -------------------------------------------------------------------------------------------------------------------
10,365,592 330,152 10,515,696 (11,977,039) (4,200,417) (20,130,002)
- -------------------------------------------------------------------------------------------------------------------
(675,949) (1,896,994) (693,711) (2,322,208) (1,701,627) (3,364,864)
(189,022) (715,960) (170,392) (560,090) (522,557) (1,207,464)
(2,185,815) (2,751,642) (2,037,599) (2,742,238) - -
- - - - - (6,854,069)
- - - - - (4,074,977)
- -------------------------------------------------------------------------------------------------------------------
(3,050,786) (5,364,596) (2,901,702) (5,624,536) (2,224,184) (15,501,374)
6,264,662 10,394,745 3,706,817 3,558,947 6,306,538 15,917,465
624,696 1,768,098 560,633 1,974,564 1,664,332 10,047,835
(5,275,593) (28,507,600) (2,724,371) (16,819,361) (9,168,329) (22,432,868)
- -------------------------------------------------------------------------------------------------------------------
1,613,765 (16,344,757) 1,543,079 (11,285,850) (1,197,459) 3,532,432
- -------------------------------------------------------------------------------------------------------------------
932,192 1,593,685 280,783 330,561 741,091 1,418,958
177,792 656,046 137,018 461,391 512,072 5,200,379
(5,391,042) (12,342,849) (1,596,578) (5,189,553) (7,673,834) (24,104,370)
- -------------------------------------------------------------------------------------------------------------------
(4,281,058) (10,093,118) (1,178,777) (4,397,601) (6,420,671) (17,485,033)
- -------------------------------------------------------------------------------------------------------------------
29,580,144 79,997,820 24,656,730 29,114,432 - -
2,185,815 2,751,681 2,037,599 2,742,238 - -
(10,829,335) (8,731,506) (2,129,482) (10,774,338) - -
- -------------------------------------------------------------------------------------------------------------------
20,936,624 74,017,995 24,564,847 21,082,332 - -
- -------------------------------------------------------------------------------------------------------------------
25,584,137 42,545,676 32,543,143 (12,202,694) (14,042,731) (49,583,977)
- -------------------------------------------------------------------------------------------------------------------
$184,449,780 $158,865,643 $89,320,896 $ 56,777,753 $ 84,207,861 $ 98,250,592
===================================================================================================================
$ 8,685 $ 5 $ 28,978 $ 59,973 $ 23,963 $ 310,574
===================================================================================================================
633,909 1,058,004 639,984 518,275 673,320 1,378,193
63,144 179,862 97,141 291,267 178,698 854,496
(534,187) (2,892,596) (478,675) (2,494,034) (985,380) (1,981,722)
- -------------------------------------------------------------------------------------------------------------------
162,866 (1,654,730) 258,450 (1,684,492) (133,362) 250,967
- -------------------------------------------------------------------------------------------------------------------
94,129 161,874 47,029 47,766 79,810 122,707
17,970 66,715 23,536 67,970 54,588 437,633
(546,490) (1,256,678) (278,200) (754,578) (816,397) (2,080,560)
- -------------------------------------------------------------------------------------------------------------------
(434,391) (1,028,089) (207,635) (638,842) (681,999) (1,520,220)
- -------------------------------------------------------------------------------------------------------------------
3,006,659 8,163,090 4,445,413 4,239,511 - -
221,055 281,914 352,632 411,895 - -
(1,085,019) (888,752) (371,231) (1,586,155) - -
- -------------------------------------------------------------------------------------------------------------------
2,142,695 7,556,252 4,426,814 3,065,251 - -
===================================================================================================================
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
71
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
LARGE CAP VALUE FUND
================================
SIX MONTHS FOR THE
ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008
==========================================================================================================================
NET ASSETS AT BEGINNING OF PERIOD $127,895,631 $207,452,538
-------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) 1,639,367 2,952,457
Net realized loss (11,849,812) (9,823,899)
Net change in unrealized appreciation (depreciation) (6,224,857) (65,248,186)
-------------------------------
Net increase (decrease) in net assets from operations (16,435,302) (72,119,628)
-------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,200,577) (1,320,422)
Class B (204,938) (174,455)
Class Y (1,409,386) (758,013)
Net realized gains
Class A - (660,475)
Class B - (233,526)
Class Y - (313,669)
-------------------------------
TOTAL DISTRIBUTIONS (2,814,901) (3,460,560)
CAPITAL STOCK TRANSACTIONS:
CLASS A SHARES
Shares sold 3,519,061 13,194,066
Issued to shareholders in reinvestment of distributions 1,184,777 1,958,639
Shares redeemed (6,437,194) (34,236,926)
-------------------------------
Net increase (decrease) from capital stock transactions (1,733,356) (19,084,221)
-------------------------------
CLASS B SHARES
Shares sold 349,408 995,506
Issued to shareholders in reinvestment of distributions 202,297 402,492
Shares redeemed (3,415,636) (17,723,909)
-------------------------------
Net decrease from capital stock transactions (2,863,931) (16,325,911)
-------------------------------
CLASS Y SHARES
Shares sold 15,588,343 60,649,483
Issued to shareholders in reinvestment of distributions 1,409,387 1,071,682
Shares redeemed (2,940,292) (30,287,752)
-------------------------------
Net increase (decrease) from capital stock transactions 14,057,438 31,433,413
-------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS (9,790,052) (79,556,907)
-------------------------------
NET ASSETS AT END OF PERIOD $118,105,579 $127,895,631
===============================
Undistributed (distribution in excess of) net investment income $ 1,099,791 $ 2,275,325
===============================
CAPITAL SHARE TRANSACTIONS:
CLASS A SHARES
Shares sold 390,002 911,422
Issued to shareholders in reinvestment of distributions 125,639 122,876
Shares redeemed (732,704) (2,440,255)
-------------------------------
Net increase (decrease) from capital stock transactions (217,063) (1,405,957)
-------------------------------
CLASS B SHARES
Shares sold 39,959 71,453
Issued to shareholders in reinvestment of distributions 21,706 25,539
Shares redeemed (390,227) (1,255,090)
-------------------------------
Net increase from capital stock transactions (328,562) (1,158,098)
-------------------------------
CLASS Y SHARES
Shares sold 1,782,364 4,309,888
Issued to shareholders in reinvestment of distributions 149,616 67,274
Shares redeemed (331,378) (2,045,540)
-------------------------------
Net increase (decrease) from capital stock transactions 1,600,602 2,331,622
===============================
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
72
================================================================================
- --------------------------------------------------------------------------------
LARGE CAP GROWTH FUND MID CAP VALUE FUND MID CAP GROWTH FUND
================================= =================================== ===============================
SIX MONTHS FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31, APRIL 30, 2009 OCTOBER 31, APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008 (UNAUDITED) 2008 (UNAUDITED) 2008
===================================================================================================================
$122,320,504 $157,211,269 $31,186,859 $ 80,535,127 $ 36,781,465 $ 79,687,951
- -------------------------------------------------------------------------------------------------------------------
412,546 339,034 208,466 545,738 (78,220) (371,226)
(18,436,558) (17,320,713) (5,671,229) (6,255,171) (15,000,904) (9,479,633)
21,471,595 (50,815,871) 4,336,693 (18,091,854) 16,326,529 (23,793,516)
- -------------------------------------------------------------------------------------------------------------------
3,447,583 (67,797,550) (1,126,070) (23,801,287) 1,247,405 (33,644,375)
- -------------------------------------------------------------------------------------------------------------------
(58,214) - (254,180) (156,311) - -
- - (48,758) - - -
(278,337) - (50,165) (134,542) - -
- - - (3,770,988) - (228,134)
- - - (2,115,277) - (94,788)
- - - (2,032,161) - (254,772)
- -------------------------------------------------------------------------------------------------------------------
(336,551) - (353,103) (8,209,279) - (577,694)
3,863,263 13,364,526 2,685,900 5,135,953 1,561,047 3,723,794
57,588 - 250,019 3,870,252 - 225,949
(4,310,754) (19,439,625) (2,122,670) (11,702,810) (1,396,373) (9,851,778)
- -------------------------------------------------------------------------------------------------------------------
(389,903) (6,075,099) 813,249 (2,696,605) 164,674 (5,902,035)
- -------------------------------------------------------------------------------------------------------------------
512,742 1,519,308 166,377 522,392 160,480 494,605
- - 47,961 2,080,810 - 93,382
(4,014,732) (14,275,116) (2,214,025) (7,373,728) (913,659) (4,390,443)
- -------------------------------------------------------------------------------------------------------------------
(3,501,990) (12,755,808) (1,999,687) (4,770,526) (753,179) (3,802,456)
- -------------------------------------------------------------------------------------------------------------------
11,615,142 76,318,986 360,000 9,066,917 2,180,349 29,331,036
278,337 - 50,165 2,166,703 - 254,772
(2,661,191) (24,581,294) (105,000) (21,104,191) (1,345,454) (28,565,734)
- -------------------------------------------------------------------------------------------------------------------
9,232,288 51,737,692 305,165 (9,870,571) 834,895 1,020,074
- -------------------------------------------------------------------------------------------------------------------
8,451,427 (34,890,765) (2,360,446) (49,348,268) 1,493,795 (42,906,486)
- -------------------------------------------------------------------------------------------------------------------
$130,771,931 $122,320,504 $28,826,413 $ 31,186,859 $ 38,275,260 $ 36,781,465
===================================================================================================================
$ 412,374 $ 336,379 $ 91,617 $ 236,254 $ (78,220) $ -
===================================================================================================================
373,159 874,317 388,373 467,772 439,647 591,601
5,713 - 36,118 324,686 - 31,824
(427,203) (1,318,504) (318,327) (1,100,072) (403,055) (1,627,795)
- -------------------------------------------------------------------------------------------------------------------
(48,331) (444,187) 106,164 (307,614) 36,592 (1,004,370)
- -------------------------------------------------------------------------------------------------------------------
47,008 108,812 26,880 50,842 48,947 85,331
- - 7,324 183,655 - 13,938
(414,574) (1,008,447) (345,033) (715,538) (281,033) (754,271)
- -------------------------------------------------------------------------------------------------------------------
(367,566) (899,635) (310,829) (481,041) (232,086) (655,002)
- -------------------------------------------------------------------------------------------------------------------
1,117,536 5,011,289 50,764 803,023 606,631 4,610,312
27,504 - 7,167 181,770 - 35,733
(264,779) (1,735,170) (14,937) (1,938,357) (363,131) (4,719,320)
- -------------------------------------------------------------------------------------------------------------------
880,261 3,276,119 42,994 (953,564) 243,500 (73,275)
===================================================================================================================
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
73
================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
=================================
SIX MONTHS FOR THE
ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008
=========================================================================================================================
NET ASSETS AT BEGINNING OF PERIOD $14,403,112 $21,246,589
--------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss) 80,468 157,293
Net realized gain (loss) (1,480,829) (1,740,564)
Net change in unrealized appreciation (depreciation) 851,774 (4,253,182)
--------------------------------
Net decrease in net assets from operations (548,587) (5,836,453)
--------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
Class A (1,934) (29,762)
Class B - -
Class Y (129,838) (128,498)
Net realized gains
Class A - (105,139)
Class B - (3,496)
Class Y - (301,331)
--------------------------------
(131,772) (568,226)
TOTAL DISTRIBUTIONS
CAPITAL STOCK TRANSACTIONS:
Class A Shares
Shares sold 202,958 316,582
Issued to shareholders in reinvestment of distributions 1,934 134,900
Shares redeemed (9,858) (4,666,884)
Redemption fees - 200
--------------------------------
Net increase (decrease) from capital stock transactions 195,034 (4,215,202)
--------------------------------
CLASS B SHARES
Shares sold 45,797 32,966
Issued to shareholders in reinvestment of distributions - 3,443
Shares redeemed (37,890) (127,221)
Redemption fees 190 142
--------------------------------
Net increase (decrease) from capital stock transactions 8,097 (90,670)
--------------------------------
CLASS Y SHARES
Shares sold 3,709,448 5,700,886
Issued to shareholders in reinvestment of distributions 129,838 429,829
Shares redeemed (387,727) (2,263,641)
--------------------------------
Net increase from capital stock transactions 3,451,559 3,867,074
--------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,974,331 (6,843,477)
--------------------------------
NET ASSETS AT END OF PERIOD $17,377,443 $14,403,112
================================
Undistributed (distribution in excess of) net investment income $ 34,917 $ 86,221
================================
CAPITAL SHARE TRANSACTIONS:
CLASS A SHARES
Shares sold 34,432 37,006
Issued to shareholders in reinvestment of distributions 302 13,808
Shares redeemed (1,536) (518,508)
--------------------------------
Net increase (decrease) from capital stock transactions 33,198 (467,694)
--------------------------------
CLASS B SHARES
Shares sold 7,348 3,635
Issued to shareholders in reinvestment of distributions - 353
Shares redeemed (6,034) (14,213)
--------------------------------
Net increase (decrease) from capital stock transactions 1,314 (10,225)
--------------------------------
CLASS Y SHARES
Shares sold 593,930 611,780
Issued to shareholders in reinvestment of distributions 20,319 44,040
Shares redeemed (67,470) (256,048)
--------------------------------
Net increase from capital stock transactions 546,779 399,772
================================
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
74
================================================================================
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND INTERNATIONAL STOCK FUND
================================== =======================================
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30, 2009 OCTOBER 31, APRIL 30, 2009 OCTOBER 31,
(UNAUDITED) 2008 (UNAUDITED) 2008
===================================================================================
$13,123,695 $ 25,140,687 $106,846,107 $128,300,707
- -----------------------------------------------------------------------------------
(8,746) (108,324) 1,427,413 2,473,011
(6,606,810) (4,245,236) (14,819,234) 1,434,590
5,343,000 (6,697,805) 10,381,766 (66,782,961)
- -----------------------------------------------------------------------------------
(1,272,556) (11,051,365) (3,010,055) (62,875,360)
- -----------------------------------------------------------------------------------
- - (359,375) (744,049)
- - (68,685) (103,291)
- - (1,887,954) (569,819)
- (67,567) (473,176) (7,754,716)
- (2,008) (148,222) (2,225,021)
- (240,764) (2,206,294) (5,070,159)
- -----------------------------------------------------------------------------------
- (310,339) (5,143,706) (16,467,055)
119,919 327,437 1,867,884 6,525,825
- 67,567 813,050 6,944,808
(20,718) (4,920,640) (2,306,296) (22,521,530)
- - 266 544
- -----------------------------------------------------------------------------------
99,201 (4,525,636) 374,904 (9,050,353)
- -----------------------------------------------------------------------------------
32,034 47,663 213,851 1,275,508
- 2,008 214,392 2,246,164
(8,515) (119,343) (1,545,879) (5,554,919)
- - 400 342
- -----------------------------------------------------------------------------------
23,519 (69,672) (1,117,236) (2,032,905)
- -----------------------------------------------------------------------------------
2,325,942 13,190,178 17,372,085 100,890,199
- 240,764 4,094,248 5,639,978
(720,955) (9,490,922) (2,993,600) (37,559,104)
- -----------------------------------------------------------------------------------
1,604,987 3,940,020 18,472,733 68,971,073
- -----------------------------------------------------------------------------------
455,151 (12,016,992) 9,576,640 (21,454,600)
- -----------------------------------------------------------------------------------
$13,578,846 $ 13,123,695 $116,422,747 $106,846,107
===================================================================================
$ (8,746) $ - $ 1,140,976 $ 2,029,577
===================================================================================
23,631 33,608 243,647 501,204
- 6,309 100,724 501,066
(4,038) (530,434) (307,575) (1,812,116)
- -----------------------------------------------------------------------------------
19,593 (490,517) 36,796 (809,846)
- -----------------------------------------------------------------------------------
6,331 5,152 22,593 99,308
- 189 26,892 163,834
(1,650) (14,128) (202,245) (444,807)
- -----------------------------------------------------------------------------------
4,681 (8,787) (152,760) (181,665)
- -----------------------------------------------------------------------------------
443,930 1,391,768 2,282,852 8,130,185
- 22,438 507,971 407,219
(134,144) (1,067,965) (410,733) (2,462,120)
- -----------------------------------------------------------------------------------
309,786 346,241 2,380,090 6,075,284
===================================================================================
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
75
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND
=============================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 ------------------------------ INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 8.53 $ 11.13 $ 10.53 $10.00
------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.16 0.28 0.24 0.05
Net realized and unrealized gain (loss) on investments 0.09 (2.58) 0.49 0.48
------------------------------------------------------------
Total from investment operations 0.25 (2.30) 0.73 0.53
------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.33) (0.27) (0.12) -
Distributions from capital gains - (0.03) (0.01) -
------------------------------------------------------------
Total distributions (0.33) (0.30) (0.13) -
------------------------------------------------------------
Net increase (decrease) in net asset value (0.08) (2.60) 0.60 0.53
------------------------------------------------------------
NET ASSET VALUE at end of period $ 8.45 $ 8.53 $ 11.13 $10.53
============================================================
TOTAL RETURN(2) 2.97%(3) (21.19)% 6.94% 5.30%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $21,265 $19,753 $16,003 $3,031
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.02%(4) 1.14% 1.79% 10.53%(4)
After reimbursement of expenses by Adviser 0.70%(4) 0.70% 0.70% 0.70%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 3.74%(4) 2.75% 3.00% 2.78%(4)
Portfolio Turnover(5) 29%(3) 90% 39% 26%(3)
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 8.48 $ 11.07 $ 10.51 $10.00
------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.13 0.18 0.17 0.02
Net realized and unrealized gain (loss) on investments 0.09 (2.55) 0.48 0.49
------------------------------------------------------------
Total from investment operations 0.22 (2.37) 0.65 0.51
------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.25) (0.19) (0.08) -
Distributions from capital gains - (0.03) (0.01) -
------------------------------------------------------------
Total distributions (0.25) (0.22) (0.09) -
------------------------------------------------------------
Net increase (decrease) in net asset value (0.03) (2.59) 0.56 0.51
------------------------------------------------------------
NET ASSET VALUE at end of period $ 8.45 $ 8.48 $ 11.07 $10.51
============================================================
TOTAL RETURN(2) 2.62%(3) (21.82)% 6.16% 5.10%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 5,349 $ 5,506 $ 4,173 $ 622
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.77%(4) 1.89% 2.53% 10.21%(4)
After reimbursement of expenses by Adviser 1.45%(4) 1.45% 1.45% 1.45%(4)
Ratio of net investment income to average net assets 3.09%(4) 2.01% 2.23% 2.20%(4)
After reimbursement of expenses by Adviser
Portfolio Turnover(5) 29%(3) 90% 39% 26%(3)
- -------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
76
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
CONSERVATIVE ALLOCATION FUND
================================
SIX MONTHS
ENDED
04/30/09 INCEPTION
(unaudited) to 10/31/08(2)
==============================================================================================
CLASS C
- -------
NET ASSET VALUE at beginning of period $ 8.48 $ 10.47
-----------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.11 0.03
Net realized and unrealized gain (loss) on investments 0.12 (2.02)
-----------------------------
Total from investment operations 0.23 (1.99)
-----------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.25) -
Distributions from capital gains - -
-----------------------------
Total distributions (0.25) -
-----------------------------
Net increase (decrease) in net asset value (0.02) (1.99)
-----------------------------
NET ASSET VALUE at end of period $ 8.46 $ 8.48
=============================
2.74%(4) (19.01)%(4)
TOTAL RETURN(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 2,256 $ 2,198
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 2.24%(5) 2.67%(5)
After reimbursement of expenses by Adviser 1.45%(5) 1.45%(5)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 3.02%(5) 0.60%(5)
Portfolio Turnover(7) 29%(4) 90%(4)
MODERATE ALLOCATION FUND
==================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 ------------------------------ INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 7.84 $ 11.82 $ 10.65 $10.00
-----------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.11 0.16 0.17 0.02
Net realized and unrealized gain (loss) on investments (0.13) (3.88) 1.12 0.63
-----------------------------------------------------------------
Total from investment operations (0.02) (3.72) 1.29 0.65
-----------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.15) (0.18) (0.12) -
Distributions from capital gains - (0.08) (0.00)(6) -
-----------------------------------------------------------------
Total distributions (0.15) (0.26) (0.12) -
-----------------------------------------------------------------
Net increase (decrease) in net asset value (0.17) (3.98) 1.17 0.65
-----------------------------------------------------------------
NET ASSET VALUE at end of period $ 7.67 $ 7.84 $ 11.82 $10.65
=================================================================
TOTAL RETURN(3) (0.19)%(4) (32.18)% 12.26% 6.50%(4)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $51,434 $50,326 $56,312 $8,762
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 0.81%(5) 0.79% 0.89% 4.73%(5)
After reimbursement of expenses by Adviser 0.70%(5) 0.70% 0.70% 0.70%(5)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 3.03%(5) 1.41% 1.45% 1.34%(5)
Portfolio Turnover(7) 21%(4) 83% 21% 11%(4)
- -------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Commenced investment operations February 29, 2008.
(3) Total return without applicable sales charge.
(4) Not annualized.
(5) Annualized.
(6) Amounts represent less than $0.005 per share
(7) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
77
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
MODERATE ALLOCATION FUND
================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 ------------------------------ INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
=================================================================================================================================
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 7.80 $ 11.75 $ 10.63 $10.00
----------------------------------------------------------------
Income from Investment Operations:
Net investment income 0.09 0.06 0.09 0.01
Net realized and unrealized gain (loss) on investments (0.14) (3.84) 1.11 0.62
----------------------------------------------------------------
Total from investment operations (0.05) (3.78) 1.20 0.63
----------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.10) (0.09) (0.08) -
Distributions from capital gains - (0.08) - -
----------------------------------------------------------------
Total distributions (0.10) (0.17) (0.08) -
----------------------------------------------------------------
Net increase (decrease) in net asset value (0.15) (3.95) 1.12 0.63
----------------------------------------------------------------
NET ASSET VALUE at end of period $ 7.65 $ 7.80 $ 11.75 $10.63
================================================================
TOTAL RETURN(3) (0.69)%(4) (32.64)% 11.38% 6.30%(4)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $17,188 $17,728 $19,825 $3,289
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.56%(5) 1.54% 1.64% 4.71%(5)
After reimbursement of expenses by Adviser 1.45%(5) 1.45% 1.45% 1.45%(5)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 2.33%(5) 0.66% 0.63% 0.67%(5)
Portfolio Turnover(6) 21%(4) 83% 21% 11%(4)
MODERATE ALLOCATION FUND
===============================
SIX MONTHS
ENDED
04/30/09 INCEPTION
(unaudited) to 10/31/08(2)
==============================================================================================
CLASS C
- -------
NET ASSET VALUE at beginning of period $ 7.80 $ 10.61
-----------------------------
Income from Investment Operations:
Net investment income 0.08 0.02
Net realized and unrealized gain (loss) on investments (0.13) (2.83)
-----------------------------
Total from investment operations (0.05) (2.81)
-----------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.10) -
Distributions from capital gains - -
-----------------------------
Total distributions (0.10) -
-----------------------------
Net increase (decrease) in net asset value (0.15) (2.81)
-----------------------------
NET ASSET VALUE at end of period $ 7.65 $ 7.80
=============================
(0.69)%(4) (26.48)%(4)
TOTAL RETURN(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 2,248 $ 2,149
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 2.09%(5) 2.38%(5)
After reimbursement of expenses by Adviser 1.45%(5) 1.45%(5)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 2.12%(5) 0.39%(5)
Portfolio Turnover(6) 21%(4) 83%(4)
- -------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Commenced investment operations February 29, 2008.
(3) Total return without applicable sales charge.
(4) Not annualized.
(5) Annualized.
(6) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
78
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND
============================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 ------------------------------ INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
===================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 7.16 $ 12.53 $ 10.76 $10.00
------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.08 0.04 0.09 (0.01)
Net realized and unrealized gain (loss) on investments (0.34) (5.18) 1.83 0.77
------------------------------------------------------------
Total from investment operations (0.26) (5.14) 1.92 0.76
------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.04) (0.13) (0.15) -
Distributions from capital gains - (0.10) - -
------------------------------------------------------------
Total distributions (0.04) (0.23) (0.15) -
------------------------------------------------------------
Net increase (decrease) in net asset value (0.30) (5.37) 1.77 0.76
------------------------------------------------------------
NET ASSET VALUE at end of period $ 6.86 $ 7.16 $ 12.53 $10.76
============================================================
TOTAL RETURN(2) (3.69)%(3) (41.73)% 18.00% 7.60%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $16,423 $14,975 $18,824 $2,675
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.36%(4) 1.25% 1.62% 10.14%(4)
After reimbursement of expenses by Adviser 0.70%(4) 0.70% 0.70% 0.70%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 2.47%(4) 0.09% (0.33)% (0.56)%(4)
Portfolio Turnover(6) 12%(3) 91% 24% 10%(3)
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 7.12 $ 12.46 $ 10.74 $10.00
------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 (0.06) 0.00(5) (0.01)
Net realized and unrealized gain (loss) on investments (0.34) (5.14) 1.82 0.75
------------------------------------------------------------
Total from investment operations (0.29) (5.20) 1.82 0.74
------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income - (0.04) (0.10) -
Distributions from capital gains - (0.10) - -
------------------------------------------------------------
Total distributions - (0.14) (0.10) -
------------------------------------------------------------
Net increase (decrease) in net asset value (0.29) (5.34) 1.72 0.74
------------------------------------------------------------
NET ASSET VALUE at end of period $ 6.83 $ 7.12 $ 12.46 $10.74
============================================================
TOTAL RETURN(2) (4.07)%(3) (42.17)% 17.11% 7.40%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 6,349 $ 6,050 $ 7,234 $1,164
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 2.11%(4) 2.00% 2.38% 10.07%(4)
After reimbursement of expenses by Adviser 1.45%(4) 1.45% 1.45% 1.45%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 1.78%(4) (0.73)% (1.06)% (1.28)%(4)
Portfolio Turnover(6) 12%(3) 91% 24% 10%(3)
- --------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Amounts represent less than $0.005 per share
(6) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
79
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
AGGRESSIVE ALLOCATION FUND
===============================
SIX MONTHS
ENDED
04/30/09 INCEPTION
(unaudited) to 10/31/08(1)
===============================
CLASS C
- -------
NET ASSET VALUE at beginning of period $ 7.12 $ 10.70
-------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.06 (0.06)
Net realized and unrealized gain (loss)
on investments (0.34) (3.52)
-------------------------
Total from investment operations (0.28) (3.58)
-------------------------
Net increase (decrease) in net asset value (0.28) (3.58)
-------------------------
NET ASSET VALUE at end of period $ 6.84 $ 7.12
=========================
TOTAL RETURN(2) (3.93)%(3) (33.46)%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 242 $ 229
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 7.11%(4) 7.84%(4)
After reimbursement of expenses by Adviser 1.45%(4) 1.45%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 1.95%(4) (1.23)%(4)
Portfolio Turnover(6) 12%(3) 91%(3)
CASH RESERVES FUND
============================================================================
SIX MONTHS FOR THE YEAR ENDED OCTOBER 31,
ENDED 04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.00(5) 0.02 0.05 0.04 0.02 0.01
--------------------------------------------------------------------------
Total from investment operations 0.00(5) 0.02 0.05 0.04 0.02 0.01
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.00)(5) (0.02) (0.05) (0.04) (0.02) (0.01)
--------------------------------------------------------------------------
Total distributions (0.00)(5) (0.02) (0.05) (0.04) (0.02) (0.01)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (0.00)(5) - - - - -
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==========================================================================
TOTAL RETURN(2) 0.07%(3) 2.26% 4.73% 4.27% 2.33% 0.68%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $19,028 $15,339 $12,494 $10,989 $11,243 $11,916
Ratios of expenses to average net assets:
Before reimbursement/waiver of expenses by Adviser 0.90%(4) 1.02% 1.09% 1.09% 0.98% 0.82%
After reimbursement/waiver of expenses by Adviser 0.43%(4,7) 0.55% 0.55% 0.55% 0.55% 0.55%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 0.13%(4) 2.16% 4.64% 4.13% 2.30% 0.68%
- ------------------------------------------------------
(1) Commenced investment operations February 29, 2008.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Amounts represent less than $0.005 per share
(6) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
(7) Amount includes fees waived by the adviser and distributor (see Note 3).
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
80
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
CASH RESERVES FUND
============================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.00(7) 0.01 0.04 0.03 0.02 0.00(7)
--------------------------------------------------------------------------
Total from investment operations 0.00(7) 0.01 0.04 0.03 0.02 0.00(7)
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.00)(7) (0.01) (0.04) (0.03) (0.02) -
--------------------------------------------------------------------------
Total distributions (0.00)(7) (0.01) (0.04) (0.03) (0.02) -
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (0.00)(7) - - - - 0.00
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==========================================================================
TOTAL RETURN(3) 0.01%(5) 1.50% 3.94% 3.48% 1.57% 0.07%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $5,166 $4,655 $2,779 $4,242 $6,105 $8,432
Ratios of expenses to average net assets:
Before reimbursement/waiver of expenses by Adviser 1.65%(6) 1.77% 1.84% 1.84% 1.73% 1.57%
After reimbursement/waiver of expenses by Adviser 0.55%(6,8) 1.30% 1.30% 1.30% 1.30% 1.15%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 0.02%(6) 1.32% 3.88% 3.37% 1.49% 0.06%
FOR THE
PERIOD ENDED INCEPTION
6/14/07(1) to 10/31/06(2)
================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 1.00 $ 1.00
-----------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.02
-----------------------------
Total from investment operations 0.03 0.02
-----------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.03) (0.02)
-----------------------------
Total distributions (0.03) (0.02)
-----------------------------
Net increase (decrease) in net asset value - -
-----------------------------
NET ASSET VALUE at end of period $ 1.00 $ 1.00
=============================
TOTAL RETURN(3) N/A 1.57%(5)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ - $2,746
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.00%(6) 1.35%(6)
After reimbursement of expenses by Adviser 0.55%(6) 0.55%(6)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 4.62%(6) 4.75%(6)
- -------------------------------------------------------
(1) Cash Reserves Fund Class Y shares were liquidated June 14, 2007.
(2) Commenced investment operations June 30, 2006.
(3) Total return without applicable sales charge.
(4) Amount includes fees waived by distributor (see Note 3).
(5) Not annualized.
(6) Annualized.
(7) Amounts represent less than $0.005 per share
(8) Amount includes fees waived by the adviser and distributor (see Note 3).
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
81
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
BOND FUND
============================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 9.48 $ 9.78 $ 9.88 $ 9.85 $ 10.17 $ 10.12
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.17 0.39 0.43 0.42 0.39 0.37
Net realized and unrealized gain (loss)
on investments 0.42 (0.30) (0.10) 0.03 (0.31) 0.07
--------------------------------------------------------------------------
Total from investment operations 0.59 0.09 0.33 0.45 0.08 0.44
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.17) (0.39) (0.36) (0.42) (0.40) (0.39)
Return of capital - - (0.07) - - -
--------------------------------------------------------------------------
Total distributions (0.17) (0.39) (0.43) (0.42) (0.40) (0.39)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value 0.42 (0.30) (0.10) 0.03 (0.32) 0.05
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 9.90 $ 9.48 $ 9.78 $ 9.88 $ 9.85 $ 10.17
==========================================================================
TOTAL RETURN(1) 6.21%(2) 0.89% 3.42% 4.70% 0.74% 4.46%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $41,181 $37,882 $55,271 $59,646 $61,942 $59,900
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 0.96%(3) 1.02% 1.08% 1.08% 1.07% 1.01%
After reimbursement of expenses by Adviser 0.90%(3) 0.90% 0.90% 0.90% 0.90% 0.90%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 3.42%(3) 4.05% 4.40% 4.27% 3.82% 3.73%
Portfolio Turnover(4) 31%(2) 22% 40% 33% 43% 81%
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 9.48 $ 9.78 $ 9.88 $ 9.85 $ 10.17 $ 10.12
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.13 0.32 0.35 0.35 0.31 0.30
Net realized and unrealized gain (loss)
on investments 0.42 (0.30) (0.10) 0.03 (0.31) 0.07
--------------------------------------------------------------------------
Total from investment operations 0.55 0.02 0.25 0.38 - 0.37
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.13) (0.32) (0.29) (0.35) (0.32) (0.32)
Return of capital - - (0.06) - - -
--------------------------------------------------------------------------
Total distributions (0.13) (0.32) (0.35) (0.35) (0.32) (0.32)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value 0.42 (0.30) (0.10) 0.03 (0.32) 0.05
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 9.90 $ 9.48 $ 9.78 $ 9.88 $ 9.85 $ 10.17
==========================================================================
TOTAL RETURN(1) 5.81%(2) 0.13% 2.64% 3.91% (0.01)% 3.68%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $12,350 $15,941 $26,507 $37,233 $47,588 $55,269
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.71%(3) 1.77% 1.83% 1.83% 1.82% 1.76%
After reimbursement of expenses by Adviser 1.65%(3) 1.65% 1.65% 1.65% 1.65% 1.65%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 2.68%(3) 3.29% 3.65% 3.51% 3.08% 2.95%
Portfolio Turnover(4) 31%(2) 22% 40% 33% 43% 81%
- ----------------------------------------------------
(1) Total return without applicable sales charge.
(2) Not annualized.
(3) Annualized.
(4) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
82
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
BOND FUND
======================================================
SIX MONTHS FOR THE YEAR
ENDED ENDED OCTOBER 31,
04/30/09 --------------------- INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
===============================================================================================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 9.47 $ 9.77 $ 9.88 $ 9.61
------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.18 0.42 0.45 0.15
Net realized and unrealized gain (loss) on investments 0.42 (0.30) (0.11) 0.27
------------------------------------------------------
Total from investment operations 0.60 0.12 0.34 0.42
------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.18) (0.42) (0.38) (0.15)
Return of capital - - (0.07) -
------------------------------------------------------
Total distributions (0.18) (0.42) (0.45) (0.15)
------------------------------------------------------
Net increase (decrease) in net asset value 0.42 (0.30) (0.11) 0.27
------------------------------------------------------
NET ASSET VALUE at end of period $ 9.89 $ 9.47 $ 9.77 $ 9.88
======================================================
TOTAL RETURN(2) 6.34%(3) 1.14% 3.58% 4.39%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $130,919 $105,043 $34,542 $ 6,141
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 0.71%(4) 0.76% 0.82% 0.89%(4)
After reimbursement of expenses by Adviser 0.65%(4) 0.65% 0.65% 0.65%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 3.67%(4) 4.23% 4.69% 4.67%(4)
Portfolio Turnover(6) 31%(3) 22% 40% 33%(3)
HIGH INCOME FUND
===========================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 5.57 $ 7.29 $ 7.36 $ 7.29 $ 7.56 $ 7.36
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.21 0.47 0.53 0.52 0.49 0.55
Net realized and unrealized gain (loss) on investments 0.52 (1.65) (0.08) 0.07 (0.28) 0.21
--------------------------------------------------------------------------
Total from investment operations 0.73 (1.18) 0.45 0.59 0.21 0.76
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.21) (0.54) (0.52) (0.52) (0.48) (0.56)
--------------------------------------------------------------------------
Total distributions (0.21) (0.54) (0.52) (0.52) (0.48) (0.56)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value 0.52 (1.72) (0.07) 0.07 (0.27) 0.20
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 6.09 $ 5.57 $ 7.29 $ 7.36 $ 7.29 $ 7.56
==========================================================================
TOTAL RETURN(2) 13.47%(3) (17.24)% 6.31% 8.33% 2.85% 10.73%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 21,064 $ 17,818 $35,610 $36,281 $43,872 $44,137
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.09%(4) 1.14% 1.21% 1.22% 1.23% 1.16%
After reimbursement of expenses by Adviser 1.00%(4) 1.00% 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 7.67%(4) 6.77% 7.10% 6.98% 6.50% 7.37%
Portfolio Turnover(6) 22%(3) 59% 74% 67% 81%(5) 60%
- --------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Reflects subadviser change as of February 28, 2005.
(6) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
83
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
HIGH INCOME FUND
===========================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 5.63 $ 7.32 $ 7.39 $ 7.31 $ 7.58 $ 7.37
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.20 0.45 0.49 0.47 0.43 0.49
Net realized and unrealized gain (loss)
on investments 0.52 (1.70) (0.09) 0.07 (0.28) 0.22
--------------------------------------------------------------------------
Total from investment operations 0.72 (1.25) 0.40 0.54 0.15 0.71
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.19) (0.44) (0.47) (0.46) (0.42) (0.50)
--------------------------------------------------------------------------
Total distributions (0.19) (0.44) (0.47) (0.46) (0.42) (0.50)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value 0.53 (1.69) (0.07) 0.08 (0.27) 0.21
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 6.16 $ 5.63 $ 7.32 $ 7.39 $ 7.31 $ 7.58
==========================================================================
TOTAL RETURN(2) 13.09%(3) (17.93)% 5.50% 7.64% 2.06% 10.02%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 5,103 $ 5,833 $12,255 $17,099 $21,255 $23,349
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.85%(4) 1.90% 1.96% 1.97% 1.98% 1.91%
After reimbursement of expenses by Adviser 1.75%(4) 1.75% 1.75% 1.75% 1.75% 1.75%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 6.92%(4) 6.04% 6.37% 6.24% 5.75% 6.63%
Portfolio Turnover(6) 22%(3) 59% 74% 67% 81%(5) 60%
SIX MONTHS FOR THE YEAR
ENDED ENDED OCTOBER 31,
04/30/09 --------------------- INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
======================================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 5.56 $ 7.30 $ 7.36 $ 7.21
------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.21 0.48 0.51 0.16
Net realized and unrealized gain (loss)
on investments 0.53 (1.65) (0.03) 0.17
------------------------------------------------------
Total from investment operations 0.74 (1.17) 0.48 0.33
------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.22) (0.57) (0.54) (0.18)
------------------------------------------------------
Total distributions (0.22) (0.57) (0.54) (0.18)
------------------------------------------------------
Net increase (decrease) in net asset value 0.52 (1.74) (0.06) 0.15
------------------------------------------------------
NET ASSET VALUE at end of period $ 6.08 $ 5.56 $ 7.30 $ 7.36
======================================================
TOTAL RETURN(2) 13.63%(3) (17.09)% 6.72% 4.59%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $63,154 $33,127 $21,115 $ 2,637
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 0.84%(4) 0.89% 0.94% 1.06%(4)
After reimbursement of expenses by Adviser 0.75%(4) 0.75% 0.75% 0.75%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 7.95%(4) 7.03% 7.43% 7.33%(4)
Portfolio Turnover(6) 22%(3) 59% 74% 67%(3)
- --------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Reflects subadviser change as of February 28, 2005.
(6) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
84
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
DIVERSIFIED INCOME FUND
===========================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 9.92 $ 13.24 $ 13.20 $ 12.25 $ 11.81 $ 11.18
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.21 0.45 0.49 0.26 0.24 0.22
Net realized and unrealized gain (loss)
on investments (0.63) (2.30) 0.27 0.95 0.44 0.64
--------------------------------------------------------------------------
Total from investment operations (0.42) (1.85) 0.76 1.21 0.68 0.86
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.24) (0.47) (0.49) (0.26) (0.24) (0.23)
Distributions from capital gains - (1.00) (0.23) - - -
--------------------------------------------------------------------------
Total distributions (0.24) (1.47) (0.72) (0.26) (0.24) (0.23)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (0.66) (3.32) 0.04 0.95 0.44 0.63
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 9.26 $ 9.92 $ 13.24 $ 13.20 $ 12.25 $ 11.81
==========================================================================
TOTAL RETURN(1) (4.17)%(2) (15.39)% 5.95% 9.97% 5.74% 7.71%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $64,251 $70,095 $90,254 $91,339 $107,457 $ 98,900
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.37%(3) 1.29% 1.25% 1.21% 1.21% 1.17%
After reimbursement of expenses by Adviser 1.10%(3) 1.10% 1.10% 1.10% 1.10% 1.10%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 4.60%(3) 3.94% 3.73% 2.01% 1.88% 1.88%
Portfolio Turnover(4) 12%(2) 15% 62% 62% 34% 39%
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 9.96 $ 13.25 $ 13.22 $ 12.26 $ 11.82 $ 11.19
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.18 0.39 0.40 0.16 0.14 0.13
Net realized and unrealized gain (loss)
on investments (0.62) (2.34) 0.26 0.96 0.44 0.64
--------------------------------------------------------------------------
Total from investment operations (0.44) (1.95) 0.66 1.12 0.58 0.77
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.21) (0.34) (0.40) (0.16) (0.14) (0.14)
Distributions from capital gains - (1.00) (0.23) - - -
--------------------------------------------------------------------------
Total distributions (0.21) (1.34) (0.63) (0.16) (0.14) (0.14)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (0.65) (3.29) 0.03 0.96 0.44 0.63
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 9.31 $ 9.96 $ 13.25 $ 13.22 $ 12.26 $ 11.82
==========================================================================
TOTAL RETURN(1) (4.50)%(2) (16.01)% 5.09% 9.23% 4.94% 6.90%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $19,957 $28,156 $57,581 $80,486 $ 98,258 $105,784
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 2.13%(3) 2.04% 2.00% 1.96% 1.96% 1.92%
After reimbursement of expenses by Adviser 1.85%(3) 1.85% 1.85% 1.85% 1.85% 1.85%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 3.87%(3) 3.18% 2.99% 1.27% 1.15% 1.14%
Portfolio Turnover(4) 12%(2) 15% 62% 62% 34% 39%
- ---------------------------------------------------
(1) Total return without applicable sales charge.
(2) Not annualized.
(3) Annualized.
(4) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
85
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
LARGE CAP VALUE FUND
============================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 10.60 $ 16.91 $ 15.47 $ 13.20 $ 12.19 $ 11.05
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.13 0.28 0.22 0.22 0.16 0.14
Net realized and unrealized gain (loss)
on investments (1.51) (6.30) 1.45 2.23 1.00 1.12
--------------------------------------------------------------------------
Total from investment operations (1.38) (6.02) 1.67 2.45 1.16 1.26
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.22) (0.19) (0.23) (0.18) (0.15) (0.12)
Distributions from capital gains - (0.10) - - - -
--------------------------------------------------------------------------
Total distributions (0.22) (0.29) (0.23) (0.18) (0.15) (0.12)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (1.60) (6.31) 1.44 2.27 1.01 1.14
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 9.00 $ 10.60 $ 16.91 $ 15.47 $ 13.20 $ 12.19
==========================================================================
TOTAL RETURN(1) (13.08)%(2) (36.17)% 10.88% 18.75% 9.56% 11.48%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $47,349 $58,075 $116,358 $113,441 $103,765 $85,855
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.22%(3) 1.16% 1.13% 1.16% 1.17% 1.13%
After reimbursement of expenses by Adviser 1.20%(3) 1.16% 1.13% 1.00% 1.00% 1.00%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 2.93%(3) 1.87% 1.32% 1.53% 1.29% 1.26%
Portfolio Turnover(4) 15%(2) 55% 47% 45% 12% 16%
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 10.42 $ 16.61 $ 15.20 $ 12.97 $ 11.98 $ 10.87
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.13 0.27 0.16 0.15 0.09 0.06
Net realized and unrealized gain (loss)
on investments (1.52) (6.29) 1.36 2.16 0.96 1.10
--------------------------------------------------------------------------
Total from investment operations (1.39) (6.02) 1.52 2.31 1.05 1.16
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.15) (0.07) (0.11) (0.08) (0.06) (0.05)
Distributions from capital gains - (0.10) - - - -
--------------------------------------------------------------------------
Total distributions (0.15) (0.17) (0.11) (0.08) (0.06) (0.05)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (1.54) (6.19) 1.41 2.23 0.99 1.11
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 8.88 $ 10.42 $ 16.61 $ 15.20 $ 12.97 $ 11.98
==========================================================================
TOTAL RETURN(1) (13.40)%(2) (36.59)% 10.03% 17.86% 8.73% 10.70%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 9,861 $14,993 $ 43,146 $ 62,766 $ 74,028 $83,482
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.98%(3) 1.91% 1.89% 1.90% 1.92% 1.89%
After reimbursement of expenses by Adviser 1.95%(3) 1.91% 1.88% 1.75% 1.75% 1.75%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 2.20%(3) 1.11% 0.61% 0.80% 0.57% 0.53%
Portfolio Turnover(4) 15%(2) 55% 47% 45% 12% 16%
- ---------------------------------------------------
(1) Total return without applicable sales charge.
(2) Not annualized.
(3) Annualized.
(4) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
86
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
LARGE CAP VALUE FUND
======================================================
SIX MONTHS FOR THE YEAR
ENDED ENDED OCTOBER 31,
04/30/09 --------------------- INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
===============================================================================================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 10.62 $ 16.93 $ 15.48 $14.07
------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.12 0.22 0.21 0.03
Net realized and unrealized gain (loss) on investments (1.49) (6.20) 1.51 1.38
------------------------------------------------------
Total from investment operations (1.37) (5.98) 1.72 1.41
------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.25) (0.23) (0.27) -
Distributions from capital gains - (0.10) - -
------------------------------------------------------
Total distributions (0.25) (0.33) (0.27) -
------------------------------------------------------
Net increase (decrease) in net asset value (1.62) (6.31) 1.45 1.41
------------------------------------------------------
NET ASSET VALUE at end of period $ 9.00 $ 10.62 $ 16.93 $15.48
======================================================
TOTAL RETURN(2) (13.02)%(3) (35.97)% 11.21% 10.02%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $60,896 $54,828 $47,949 $7,169
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 0.97%(4) 0.91% 0.87% 0.96%
After reimbursement of expenses by Adviser 0.95%(4) 0.91% 0.88% 0.75%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 3.11%(4) 2.07% 1.47% 1.31%(4)
Portfolio Turnover(6) 15%(3) 55% 47% 45%(3)
LARGE CAP GROWTH FUND
============================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE beginning of period $ 11.07 $ 17.39 $ 14.70 $ 13.72 $ 12.87 $ 11.88
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.04 0.03 (0.00)(5) 0.00(5) 0.08 0.01
Net realized and unrealized gain (loss) on investments 0.25 (6.35) 2.69 1.05 0.77 0.98
--------------------------------------------------------------------------
Total from investment operations 0.29 (6.32) 2.69 1.05 0.85 0.99
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) - - (0.07) (0.00)(5) -
--------------------------------------------------------------------------
Total distributions (0.02) - - (0.07) (0.00)(5) -
--------------------------------------------------------------------------
Net increase (decrease) in net asset value 0.27 (6.32) 2.69 0.98 0.85 0.99
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 11.34 $ 11.07 $ 17.39 $ 14.70 $ 13.72 $ 12.87
==========================================================================
TOTAL RETURN(2) 2.61%(3) (36.34)% 18.30% 7.71% 6.61% 8.33%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $38,921 $38,538 $68,253 $65,216 $78,785 $73,674
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.40%(4) 1.34% 1.43% 1.45% 1.44% 1.38%
After reimbursement of expenses by Adviser 1.20%(4) 1.20% 1.20% 1.20% 1.20% 1.20%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 0.64%(4) 0.18% (0.02)% 0.09% 0.62% 0.08%
Portfolio Turnover(6) 58%(3) 141% 93% 148% 18% 27%
- --------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Amounts represent less than $0.005 per share
(6) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
87
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
LARGE CAP GROWTH FUND
============================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 10.30 $ 16.29 $ 13.88 $ 12.98 $ 12.27 $ 11.40
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.01 (0.11) (0.13) (0.09) (0.01) (0.08)
Net realized and unrealized gain (loss)
on investments 0.21 (5.88) 2.54 0.99 0.72 0.95
--------------------------------------------------------------------------
Total from investment operations 0.22 (5.99) 2.41 0.90 0.71 0.87
--------------------------------------------------------------------------
Net increase (decrease) in net asset value 0.22 (5.99) 2.41 0.90 0.71 0.87
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 10.52 $ 10.30 $ 16.29 $ 13.88 $ 12.98 $ 12.27
==========================================================================
TOTAL RETURN(2) 2.14%(3) (36.77)% 17.36% 6.93% 5.79% 7.63%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $10,012 $13,580 $36,147 $43,975 $54,946 $63,544
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 2.15%(4) 2.10% 2.18% 2.20% 2.19% 2.13%
After reimbursement of expenses by Adviser 1.95%(4) 1.95% 1.95% 1.95% 1.94% 1.95%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser (0.09)%(4) (0.56)% (0.76)% (0.65)% (0.09)% (0.67)%
Portfolio Turnover(6) 58%(3) 141% 93% 148% 18% 27%
SIX MONTHS FOR THE YEAR
ENDED ENDED OCTOBER 31,
04/30/09 --------------------- INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
======================================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 11.14 $ 17.45 $ 14.72 $13.71
------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.04 0.06 0.02 (0.00)(5)
Net realized and unrealized gain (loss)
on investments 0.25 (6.37) 2.71 1.01
------------------------------------------------------
Total from investment operations 0.29 (6.31) 2.73 1.01
------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.04) - - -
------------------------------------------------------
Total distributions (0.04) - - -
------------------------------------------------------
Net increase (decrease) in net asset value 0.25 (6.31) 2.73 1.01
------------------------------------------------------
NET ASSET VALUE at end of period $ 11.39 $ 11.14 $ 17.45 $14.72
======================================================
TOTAL RETURN(2) 2.67%(3) (36.16)% 18.55% 7.37%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $81,839 $70,203 $52,811 $9,939
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.15%(4) 1.09% 1.16% 1.30%(4)
After reimbursement of expenses by Adviser 0.95%(4) 0.95% 0.95% 0.95%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 0.88%(4) 0.45% 0.19% (0.07)%(4)
Portfolio Turnover(6) 58%(3) 141% 93% 148%(3)
- ---------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Amounts represent less than $0.005 per share
(6) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
88
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
MID CAP VALUE FUND
============================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 7.67 $ 13.90 $ 15.54 $ 14.08 $ 12.44 $ 11.12
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.06 0.14 0.09 0.10 0.03 0.09
Net realized and unrealized gain (loss)
on investments (0.29) (4.98) 1.27 2.32 1.70 1.23
--------------------------------------------------------------------------
Total from investment operations (0.23) (4.84) 1.36 2.42 1.73 1.32
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.10) (0.06) (0.08) (0.01) (0.09) -
Distributions from capital gains - (1.33) (2.92) (0.95) - -
--------------------------------------------------------------------------
Total distributions (0.10) (1.39) (3.00) (0.96) (0.09) -
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (0.33) (6.23) (1.64) 1.46 1.64 1.32
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 7.34 $ 7.67 $ 13.90 $ 15.54 $ 14.08 $ 12.44
==========================================================================
TOTAL RETURN(1) (2.94)%(2) (38.40)% 9.94% 17.93% 13.95% 11.87%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $19,502 $19,549 $39,708 $34,364 $44,126 $40,103
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 2.08%(3) 1.81% 1.69% 1.68% 1.70% 1.61%
After reimbursement of expenses by Adviser 1.40%(3) 1.40% 1.40% 1.40% 1.40% 1.40%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 1.68%(3) 1.20% 0.74% 0.53% 0.20% 0.77%
Portfolio Turnover(5) 29%(2) 83% 76% 108% 37% 21%
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 7.23 $ 13.24 $ 14.96 $ 13.67 $ 12.09 $ 10.91
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05 0.07 0.00(4) (0.03) (0.07) 0.00(4)
Net realized and unrealized gain (loss)
on investments (0.28) (4.75) 1.20 2.27 1.65 1.18
--------------------------------------------------------------------------
Total from investment operations (0.23) (4.68) 1.20 2.24 1.58 1.18
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.05) - - - - -
Distributions from capital gains - (1.33) (2.92) (0.95) - -
--------------------------------------------------------------------------
Total distributions (0.05) (1.33) (2.92) (0.95) - -
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (0.28) (6.01) (1.72) 1.29 1.58 1.18
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 6.95 $ 7.23 $ 13.24 $ 14.96 $ 13.67 $ 12.09
==========================================================================
TOTAL RETURN(1) (3.20)%(2) (38.97)% 9.14% 17.04% 13.07% 10.82%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 5,954 $ 8,448 $21,835 $24,813 $22,633 $20,104
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 2.83%(3) 2.56% 2.44% 2.45% 2.45% 2.36%
After reimbursement of expenses by Adviser 2.15%(3) 2.15% 2.15% 2.15% 2.15% 2.15%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 0.99%(3) 0.45% 0.00% (0.20)% (0.55)% 0.01%
Portfolio Turnover(5) 29%(2) 83% 76% 108% 37% 21%
- ----------------------------------------------------
(1) Total return without applicable sales charge.
(2) Not annualized.
(3) Annualized.
(4) Amounts represent less than $0.005 per share
(5) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
89
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
MID CAP VALUE FUND
======================================================
SIX MONTHS FOR THE YEAR
ENDED ENDED OCTOBER 31,
04/30/09 --------------------- INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
===============================================================================================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 7.77 $ 13.92 $ 15.56 $14.54
------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.07 0.09 0.13 0.02
Net realized and unrealized gain (loss)
on investments (0.29) (4.82) 1.27 1.00
------------------------------------------------------
Total from investment operations (0.22) (4.73) 1.40 1.02
------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.12) (0.09) (0.12) -
Distributions from capital gains - (1.33) (2.92) -
------------------------------------------------------
Total distributions (0.12) (1.42) (3.04) -
------------------------------------------------------
Net increase (decrease) in net asset value (0.34) (6.15) (1.64) 1.02
------------------------------------------------------
NET ASSET VALUE at end of period $ 7.43 $ 7.77 $ 13.92 $15.56
======================================================
TOTAL RETURN(2) (2.79)%(3) (37.53)% 10.25% 6.95%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $3,370 $ 3,190 $18,992 $5,531
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.83%(4) 1.49% 1.43% 1.63%(4)
After reimbursement of expenses by Adviser 1.15%(4) 1.15% 1.15% 1.15%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 1.93%(4) 1.45% 0.94% 0.97%(4)
Portfolio Turnover(5) 29%(3) 83% 76% 108%(3)
MID CAP GROWTH FUND
============================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 4.08 $ 7.45 $ 6.27 $ 5.36 $ 4.83 $ 4.46
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (0.01) (0.04) (0.07) (0.04) (0.01) (0.03)
Net realized and unrealized gain (loss)
on investments 0.15 (3.28) 1.25 0.95 0.54 0.40
--------------------------------------------------------------------------
Total from investment operations 0.14 (3.32) 1.18 0.91 0.53 0.37
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from capital gains - (0.05) - - - -
--------------------------------------------------------------------------
Total distributions - (0.05) - - - -
--------------------------------------------------------------------------
Net increase (decrease) in net asset value 0.14 (3.37) 1.18 0.91 0.53 0.37
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 4.22 $ 4.08 $ 7.45 $ 6.27 $ 5.36 $ 4.83
==========================================================================
TOTAL RETURN(2) 3.18%(3) (44.71)% 18.82% 16.98% 10.97% 8.30%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $14,865 $14,241 $33,459 $33,899 $32,395 $25,897
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.69%(4) 1.44% 1.50% 1.61% 1.69% 1.62%
After reimbursement of expenses by Adviser 1.40%(4) 1.40% 1.33% 1.20% 1.19% 1.20%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser (0.52)%(4) (0.56)% (0.87)% (0.59)% (0.25)% (0.64)%
Portfolio Turnover(5) 71%(3) 127% 109% 207% 92% 71%
- ---------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
90
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
MID CAP GROWTH FUND
============================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 3.83 $ 7.04 $ 5.96 $ 5.14 $ 4.67 $ 4.34
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (0.02) (0.10) (0.13) (0.08) (0.05) (0.06)
Net realized and unrealized gain (loss)
on investments 0.13 (3.06) 1.21 0.90 0.52 0.39
--------------------------------------------------------------------------
Total from investment operations 0.11 (3.16) 1.08 0.82 0.47 0.33
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from capital gains - (0.05) - - - -
--------------------------------------------------------------------------
Total distributions - (0.05) - - - -
--------------------------------------------------------------------------
Net increase (decrease) in net asset value 0.11 (3.21) 1.08 0.82 0.47 0.33
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 3.94 $ 3.83 $ 7.04 $ 5.96 $ 5.14 $ 4.67
==========================================================================
TOTAL RETURN(2) 2.87%(3) (45.18)% 17.92% 16.15% 10.06% 7.60%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $4,119 $ 4,891 $13,598 $15,754 $14,464 $13,030
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 2.44%(4) 2.19% 2.25% 2.35% 2.44% 2.37%
After reimbursement of expenses by Adviser 2.15%(4) 2.15% 2.08% 1.95% 1.94% 1.95%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser (1.26)%(4) (1.32)% (1.62)% (1.36)% (0.98)% (1.39)%
Portfolio Turnover(5) 71%(3) 127% 109% 207% 92% 71%
SIX MONTHS FOR THE YEAR
ENDED ENDED OCTOBER 31,
04/30/09 --------------------- INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
======================================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 4.11 $ 7.47 $ 6.27 $ 5.84
------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (0.00)(6) (0.02) (0.03) (0.01)
Net realized and unrealized gain (loss)
on investments 0.14 (3.29) 1.23 0.44
------------------------------------------------------
Total from investment operations 0.14 (3.31) 1.20 0.43
------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from capital gains - (0.05) - -
------------------------------------------------------
Total distributions - (0.05) - -
------------------------------------------------------
Net increase (decrease) in net asset value 0.14 (3.36) 1.20 0.43
------------------------------------------------------
NET ASSET VALUE at end of period $ 4.25 $ 4.11 $ 7.47 $ 6.27
======================================================
TOTAL RETURN(2) 3.41%(3) (44.66)% 19.11% 7.53%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $19,291 $17,649 $32,631 $7,830
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.44%(4) 1.19% 1.22% 1.47%(4)
After reimbursement of expenses by Adviser 1.15%(4) 1.15% 1.11% 0.95%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser (0.28)%(4) (0.27)% (0.62)% (0.58)%(4)
Portfolio Turnover(5) 71%(3) 127% 109% 207%(3)
- ---------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
(6) Amounts represent less than $0.005 per share.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
91
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
=====================================================
SIX MONTHS
ENDED FOR THE
4/30/09 YEAR ENDED INCEPTION
(unaudited) 10/31/08 to 10/31/07(1)
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 7.29 $ 10.36 $10.00
-----------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.02 0.22 0.06
Net realized and unrealized gain (loss) on investments (0.46) (3.07) 0.30
-----------------------------------------------------
Total from investment operations (0.44) (2.85) 0.36
-----------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.02) (0.05) -
Distributions from capital gains - (0.17) -
-----------------------------------------------------
Total distributions (0.02) (0.22) -
-----------------------------------------------------
Net increase (decrease) in net asset value (0.46) (3.07) 0.36
-----------------------------------------------------
NET ASSET VALUE at end of period $ 6.83 $ 7.29 $10.36
=====================================================
TOTAL RETURN(2) (6.09)%(3) (28.02)% 3.60%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $1,054 $ 883 $6,098
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 4.76%(4) 2.18% 2.61%(4)
After reimbursement of expenses by Adviser 1.50%(4) 1.50% 1.50%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 0.88%(4) 0.56% 0.71%(4)
Portfolio Turnover(6) 14%(3) 55% 14%(3)
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 7.24 $ 10.29 $10.00
-----------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.00(5) 0.03 (0.00)(5)
Net realized and unrealized gain (loss) on investments (0.46) (2.91) 0.29
-----------------------------------------------------
Total from investment operations (0.46) (2.88) 0.29
-----------------------------------------------------
REDEMPTION FEES (SEE NOTE 2): 0.02 0.02 0.00(5)
-----------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from capital gains - (0.17) -
-----------------------------------------------------
Total distributions - (0.17) -
-----------------------------------------------------
Net increase (decrease) in net asset value (0.44) (3.05) 0.29
-----------------------------------------------------
NET ASSET VALUE at end of period $ 6.80 $ 7.24 $10.29
=====================================================
TOTAL RETURN(2) (6.08)%(3) (28.38)% 2.90%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 72 $ 67 $ 200
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 22.65%(4) 7.88% 11.24%(4)
After reimbursement of expenses by Adviser 2.25%(4) 2.25% 2.25%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 0.18%(4) (0.19)% (0.01)%(4)
Portfolio Turnover(6) 14%(3) 55% 14%(3)
- -------------------------------------------------
(1) Commenced investment operations on December 27, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Amounts represent less than $0.005 per share
(6) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
92
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
SMALL CAP VALUE FUND
=====================================================
SIX MONTHS
ENDED FOR THE
4/30/09 YEAR ENDED INCEPTION
(unaudited) 10/31/08 to 10/31/07(1)
==================================================================================================================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 7.31 $ 10.37 $ 9.82
-----------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.03 0.06 0.05
Net realized and unrealized gain (loss) on investments (0.47) (2.88) 0.50
-----------------------------------------------------
Total from investment operations (0.44) (2.82) 0.55
-----------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.06) (0.07) -
Distributions from capital gains - (0.17) -
-----------------------------------------------------
Total distributions (0.06) (0.24) -
-----------------------------------------------------
Net increase (decrease) in net asset value (0.50) (3.06) 0.55
-----------------------------------------------------
NET ASSET VALUE at end of period $ 6.81 $ 7.31 $ 10.37
=====================================================
TOTAL RETURN(3) (5.94)%(4) (27.71)% 5.60%(4)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $16,251 $13,453 $14,949
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.75%(5) 1.61% 1.91%(5)
After reimbursement of expenses by Adviser 1.25%(5) 1.25% 1.25%(5)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 1.16%(5) 0.81% 0.99%(5)
Portfolio Turnover(7) 14%(4) 55% 14%(4)
SMALL CAP GROWTH FUND
=====================================================
SIX MONTHS
ENDED FOR THE
4/30/09 YEAR ENDED INCEPTION
(unaudited) 10/31/08 to 10/31/07(2)
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 6.25 $ 11.19 $ 10.00
-----------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (0.01) (0.55) (0.03)
Net realized and unrealized gain (loss) on investments (0.67) (4.26) 1.22
-----------------------------------------------------
Total from investment operations (0.68) (4.81) 1.19
-----------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income - - (0.00)(6)
Distributions from capital gains - (0.13) -
-----------------------------------------------------
Total distributions - (0.13) (0.00)(6)
-----------------------------------------------------
Net increase (decrease) in net asset value (0.68) (4.94) 1.19
-----------------------------------------------------
NET ASSET VALUE at end of period $ 5.57 $ 6.25 $ 11.19
=====================================================
TOTAL RETURN(3) (10.88)%(4) (43.49)% 11.92%(4)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 326 $ 243 $ 5,922
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 10.33%(5) 2.17% 2.61%(5)
After reimbursement of expenses by Adviser 1.50%(5) 1.50% 1.50%(5)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser (0.39)%(5) (0.54)% (0.37)%(5)
Portfolio Turnover(7) 72%(4) 143% 90%(4)
- ----------------------------------------------------
(1) Commenced investment operations January 9, 2007.
(2) Commenced investment operations December 27, 2006.
(3) Total return without applicable sales charge.
(4) Not annualized.
(5) Annualized.
(6) Amounts represent less than $0.005 per share
(7) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
93
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
SMALL CAP GROWTH FUND
=====================================================
SIX MONTHS
ENDED FOR THE
4/30/09 YEAR ENDED INCEPTION
(unaudited) 10/31/08 to 10/31/07(1)
==================================================================================================================================
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 6.16 $ 11.11 $ 10.00
-----------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (0.02) (0.31) (0.08)
Net realized and unrealized gain (loss) on investments (0.66) (4.51) 1.19
-----------------------------------------------------
Total from investment operations (0.68) (4.82) 1.11
-----------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income - - (0.00)(6)
Distributions from capital gains - (0.13) -
-----------------------------------------------------
Total distributions - (0.13) (0.00)(6)
-----------------------------------------------------
Net increase (decrease) in net asset value (0.68) (4.95) 1.11
-----------------------------------------------------
NET ASSET VALUE at end of period $ 5.48 $ 6.16 $ 11.11
=====================================================
TOTAL RETURN(3) (11.04)%(4) (43.90)% 11.11%(4)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 59 $ 38 $ 166
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 22.21%(5) 9.51% 12.61%(5)
After reimbursement of expenses by Adviser 2.25%(5) 2.25% 2.25%(5)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser (1.18)%(5) (1.37)% (1.10)%(5)
Portfolio Turnover(7) 72%(4) 143% 90%(4)
SIX MONTHS
ENDED FOR THE
4/30/09 YEAR ENDED INCEPTION
(unaudited) 10/31/08 to 10/31/07(2)
=====================================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 6.28 $ 11.21 $ 9.84
-----------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (0.00)(6) (0.04) (0.00)(6)
Net realized and unrealized gain (loss) on investments (0.68) (4.76) 1.37
-----------------------------------------------------
Total from investment operations (0.68) (4.80) 1.37
-----------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from capital gains - (0.13) -
-----------------------------------------------------
Total distributions - (0.13) -
-----------------------------------------------------
Net increase (decrease) in net asset value (0.68) (4.93) 1.37
-----------------------------------------------------
NET ASSET VALUE at end of period $ 5.60 $ 6.28 $ 11.21
=====================================================
TOTAL RETURN(3) (10.83)%(4) (43.32)% 13.92%(4)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $13,194 $12,843 $19,053
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.95%(5) 1.56% 1.87%(5)
After reimbursement of expenses by Adviser 1.25%(5) 1.25% 1.25%(5)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser (0.14)%(5) (0.41)% (0.02)%(5)
Portfolio Turnover(7) 72%(4) 143% 90%(4)
- ------------------------------------------------------
(1) Commenced investment operations December 27, 2006.
(2) Commenced investment operations January 9, 2007.
(3) Total return without applicable sales charge.
(4) Not annualized.
(5) Annualized.
(6) Amounts represent less than $0.005 per share
(7) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
94
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
INTERNATIONAL STOCK FUND
============================================================================
SIX MONTHS
ENDED FOR THE YEAR ENDED OCTOBER 31,
04/30/09 -----------------------------------------------------------
(unaudited) 2008 2007 2006 2005 2004
==================================================================================================================================
CLASS A
- -------
NET ASSET VALUE at beginning of period $ 8.47 $ 17.05 $ 15.66 $ 12.65 $ 10.56 $ 8.92
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.09 0.23 0.16 0.15 0.14 0.08
Net realized and unrealized gain (loss)
on investments (0.36) (6.06) 2.92 3.01 2.05 1.66
--------------------------------------------------------------------------
Total from investment operations (0.27) (5.83) 3.08 3.16 2.19 1.74
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.16) (0.24) (0.11) (0.14) (0.10) (0.10)
Distributions from capital gains (0.21) (2.51) (1.58) (0.01) - -
--------------------------------------------------------------------------
Total distributions (0.37) (2.75) (1.69) (0.15) (0.10) (0.10)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (0.64) (8.58) 1.39 3.01 2.09 1.64
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 7.83 $ 8.47 $ 17.05 $ 15.66 $ 12.65 $ 10.56
==========================================================================
TOTAL RETURN(1) (3.25)%(2) (40.46)% 21.24% 25.11% 20.81% 19.56%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $17,888 $19,040 $52,145 $78,958 $58,825 $43,915
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.86%(3) 1.93% 1.89% 1.87% 1.90% 1.85%
After reimbursement of expenses by Adviser 1.60%(3) 1.60% 1.60% 1.60% 1.60% 1.60%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 2.52%(3) 1.67% 0.99% 1.03% 1.15% 0.76%
Portfolio Turnover(5) 23%(2) 69% 79% 63% 64% 45%
CLASS B
- -------
NET ASSET VALUE at beginning of period $ 8.33 $ 16.79 $ 15.45 $ 12.48 $ 10.41 $ 8.78
--------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.09 0.18 0.08 0.03 0.04 (0.00)(4)
Net realized and unrealized gain (loss)
on investments (0.39) (6.01) 2.84 2.98 2.04 1.64
--------------------------------------------------------------------------
Total from investment operations (0.30) (5.83) 2.92 3.01 2.08 1.64
--------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.10) (0.12) - (0.03) (0.01) (0.01)
Distributions from capital gains (0.21) (2.51) (1.58) (0.01) - -
--------------------------------------------------------------------------
Total distributions (0.31) (2.63) (1.58) (0.04) (0.01) (0.01)
--------------------------------------------------------------------------
Net increase (decrease) in net asset value (0.61) (8.46) 1.34 2.97 2.07 1.63
--------------------------------------------------------------------------
NET ASSET VALUE at end of period $ 7.72 $ 8.33 $ 16.79 $ 15.45 $ 12.48 $ 10.41
==========================================================================
TOTAL RETURN(1) (3.57)%(2) (40.95)% 20.31% 24.18% 20.00% 18.67%
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $ 4,605 $ 6,237 $15,630 $16,175 $10,922 $ 7,559
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 2.62%(3) 2.69% 2.64% 2.62% 2.65% 2.59%
After reimbursement of expenses by Adviser 2.35%(3) 2.35% 2.35% 2.35% 2.35% 2.35%
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 1.63%(3) 1.04% 0.41% 0.32% 0.41% 0.03%
Portfolio Turnover(5) 23%(2) 69% 79% 63% 64% 45%
- ---------------------------------------------------
(1) Total return without applicable sales charge.
(2) Not annualized.
(3) Annualized.
(4) Amounts represent less than $0.005 per share
(5) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
95
================================================================================
FINANCIAL HIGHLIGHTS FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING
- --------------------------------------------------------------------------------
INTERNATIONAL STOCK FUND
======================================================
SIX MONTHS FOR THE YEAR
ENDED ENDED OCTOBER 31,
04/30/09 --------------------- INCEPTION
(unaudited) 2008 2007 to 10/31/06(1)
===============================================================================================================
CLASS Y
- -------
NET ASSET VALUE at beginning of period $ 8.48 $ 17.08 $ 15.68 $14.57
------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.09 0.31 0.17 0.01
Net realized and unrealized gain (loss)
on investments (0.35) (6.12) 2.96 1.10
------------------------------------------------------
Total from investment operations (0.26) (5.81) 3.13 1.11
------------------------------------------------------
LESS DISTRIBUTIONS:
Distributions from net investment income (0.18) (0.28) (0.15) -
Distributions from capital gains (0.21) (2.51) (1.58) -
------------------------------------------------------
Total distributions (0.39) (2.79) (1.73) -
------------------------------------------------------
Net increase (decrease) in net asset value (0.65) (8.60) 1.40 1.11
------------------------------------------------------
NET ASSET VALUE at end of period $ 7.83 $ 8.48 $ 17.08 $15.68
======================================================
TOTAL RETURN(2) (3.01)%(3) (40.41)% 21.59% 7.62%(3)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (in 000's) $93,930 $81,569 $60,525 $9,025
Ratios of expenses to average net assets:
Before reimbursement of expenses by Adviser 1.61%(4) 1.68% 1.66% 1.72%(4)
After reimbursement of expenses by Adviser 1.35%(4) 1.35% 1.35% 1.35%(4)
Ratio of net investment income to average net assets
After reimbursement of expenses by Adviser 2.88%(4) 2.25% 1.48% 0.48%(4)
Portfolio Turnover(5) 23%(3) 69% 79% 63%(3)
- --------------------------------------------------
(1) Commenced investment operations June 30, 2006.
(2) Total return without applicable sales charge.
(3) Not annualized.
(4) Annualized.
(5) Portfolio Turnover is calculated at the fund level and represents the entire
fiscal year or period.
See accompanying Notes to Financial Statements.
- --------------------------------------------------------------------------------
96
================================================================================
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
1. ORGANIZATION
The MEMBERS Mutual Funds, a Delaware business trust (the "Trust"), is
registered under the Investment Company Act of 1940, as amended (the "1940
Act") as a diversified, open-end, management investment company. As of the
date of this report, the Trust offers fourteen funds (individually, a "fund,"
collectively, the "Funds"). The Declaration of Trust permits the Trustees to
issue an unlimited number of shares of beneficial interest of the Trust
without par value. The Trust has entered into an Investment Advisory Agreement
with MEMBERS Capital Advisors, Inc. (the "Investment Adviser"). The Investment
Adviser, in turn, has entered into subadvisory agreements with certain
subadvisers ("Subadvisers") for the management of the investments of the High
Income Fund, Mid Cap Growth Fund, Small Cap Value Fund, Small Cap Growth Fund,
International Stock Fund, and a portion of the Mid Cap Value Fund. The
accompanying financial statements include the Cash Reserves, Bond, High
Income, Diversified Income, Large Cap Value, Large Cap Growth, Mid Cap Value,
Mid Cap Growth, Small Cap Value, Small Cap Growth, and International Stock
Funds (collectively, the "Core Funds"), and the Conservative Allocation,
Moderate Allocation, and Aggressive Allocation Funds (collectively, the
"Target Allocation Funds"). The Core Funds, excluding the Cash Reserves and
Diversified Income Funds, offer three classes of shares: Class A, B and Y, the
Target Allocation Funds offer three classes of shares: Class A, B and C, and
the Cash Reserves Fund and the Diversified Income Fund, offer two classes of
shares: Class A and B. Each class of shares represents an interest in the
assets of the respective fund and has identical voting, dividend, liquidation
and other rights, except that each class of shares bears its own distribution
fees and servicing fees, if any, and its proportional share of fund level
expenses, is subject to its own sales charges, if any, and has exclusive
voting rights on matters pertaining to Rule 12b-1 of the 1940 Act as it
relates to that class and other class-specific matters.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in conformity with U.S. generally
accepted accounting principles ("GAAP") in the United States of America
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 reported period. Actual results could differ
from those estimates. The following is a summary of significant accounting
policies consistently followed by each fund, collectively, the "Funds", in the
preparation of its financial statements.
PORTFOLIO VALUATION: Securities and other investments are valued as follows:
Equity securities and exchange-traded funds ("ETFs") listed on any U.S. or
foreign stock exchange or quoted on the National Association of Securities
Dealers Automated Quotation System ("NASDAQ") are valued at the last quoted
sale price or official closing price on that exchange or NASDAQ on the
valuation day (provided that, for securities traded on NASDAQ, the Funds
utilize the NASDAQ Official Closing Price). If no sale occurs, (a) equities
traded on a U.S. exchange or on NASDAQ are valued at the mean between the
closing bid and closing asked prices and (b) equity securities traded on a
foreign exchange are valued at the official bid price. Debt securities
purchased with a remaining maturity of 61 days or more are valued by a pricing
service selected by the Trust or on the basis of dealer-supplied quotations.
Investments in shares of open-ended mutual funds, including money market
funds, are valued at their daily net asset value ("NAV") which is calculated
as of the close of regular trading (usually 3:00 p.m. Central Time) on each
day on which the New York Stock Exchange is open for business. NAV per share
is determined by dividing each fund's total net assets by the number of shares
of such fund outstanding at the time of calculation. Because the assets of the
Target Allocation Funds consist primarily of shares of the underlying funds,
the NAV of each Target Allocation Fund is determined based on the NAVs of the
underlying funds. Total net assets are determined by adding the total current
value of portfolio securities, cash, receivables, and other assets and
subtracting liabilities. Short-term instruments having maturities of 60 days
or less and all securities in the Cash Reserves Fund are valued on an
amortized cost basis, which approximates market value.
Over-the-counter securities not listed or traded on NASDAQ are valued at the
last sale price on the valuation day. If no sale occurs on the valuation day,
an over-the-counter security is valued at the mean between the last bid and
asked prices. Over-the-counter options are valued based upon prices provided
by market makers in such securities or dealers in such currencies. Exchange
traded options are valued at the last sale or bid price on the exchange where
such option contract is principally traded. Financial futures contracts
generally are valued at the settlement price established by the exchange(s) on
which the contracts are primarily traded. The Funds' securities Valuation
Committee (the "Committee") shall estimate the fair value of futures positions
affected by the daily limit by using its valuation procedures for determining
fair value, when necessary. Spot and forward foreign currency exchange
contracts are valued based on quotations supplied by dealers in such
contracts. Overnight repurchase agreements are valued at cost, and term
repurchase agreements (i.e., those whose
- --------------------------------------------------------------------------------
97
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
maturity exceeds seven days), swaps, caps, collars and floors are valued at
the average of the closing bids obtained daily from at least one dealer.
The value of all assets and liabilities expressed in foreign currencies will
be converted into U.S. dollar values using the then-current exchange rate.
All other securities for which either quotations are not readily available, no
other sales have occurred, or in the Investment Adviser's opinion, do not
reflect the current market value, are appraised at their fair values as
determined in good faith by the Committee and under the general supervision of
the Board of Trustees. When fair value pricing of securities is employed, the
prices of securities used by the Funds to calculate NAV may differ from market
quotations or official closing prices. Because the Target Allocation Funds
primarily invest in underlying funds, government securities and short-term
paper, it is not anticipated that the Investment Adviser will need to "fair"
value any of the investments of these funds. However, an underlying fund may
need to "fair" value one or more of its investments, which may, in turn,
require a Target Allocation Fund to do the same because of delays in obtaining
the underlying fund's NAV.
A fund's investments (or underlying fund) will be valued at fair value if, in
the judgment of the Committee, an event impacting the value of an investment
occurred between the closing time of a security's primary market or exchange
(for example, a foreign exchange or market) and the time the fund's share
price is calculated as of the close of regular trading on the New York Stock
Exchange (usually 3:00 p.m. Central Time). Significant events may include, but
are not limited to, the following: (1) significant fluctuations in domestic
markets, foreign markets or foreign currencies; (2) occurrences not directly
tied to the securities markets such as natural disasters, armed conflicts or
significant government actions; and (3) major announcements affecting a single
issuer or an entire market or market sector. In responding to a significant
event, the Committee would determine the fair value of affected securities
considering factors including, but not limited to: fundamental analytical data
relating to the investment; the nature and duration of any restrictions on the
disposition of the investment; and the forces influencing the market(s) in
which the investment is purchased or sold. The Committee may rely on an
independent fair valuation service to adjust the valuations of foreign equity
securities based on specific market-movement parameters established by the
Committee and approved by the Funds.
SECURITY TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
accounted for on a trade date basis. Net realized gains or losses on sales are
determined by the identified cost method. Interest income is recorded on an
accrual basis. Dividend income is recorded on ex-dividend date. Amortization
and accretion are recorded on the effective yield method.
FEDERAL INCOME TAXES: It is each fund's policy to comply with the requirements
of Subchapter M of the Internal Revenue Code of 1986 applicable to regulated
investment companies and to distribute substantially all it's taxable income
to its shareholders. Accordingly, no provisions for federal income taxes are
recorded in the accompanying financial statements.
In July 2006, the Financial Accounting Standards Board ("FASB") issued
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes--an
Interpretation of FASB Statement No. 109" ("FIN 48"). FIN 48 addresses the
accounting for uncertainty in income taxes and establishes for all entities,
including pass-through entities, such as the funds, a minimum threshold for
financial statement recognition of the benefit of positions taken in filing
tax returns (including whether an entity is taxable in a particular
jurisdiction), and requires certain expanded tax disclosures. The provisions
of FIN 48 became effective for regulated investment companies as of the last
business day of the first semi-annual reporting period for fiscal years
beginning after December 15, 2006, and are to be applied to all open tax years
as of the date of effectiveness. As required, FIN 48 was adopted for all open
tax years effective April 30, 2007 for the Small Cap Value and Small Cap
Growth Funds, as these funds commenced operations after the effective date of
FIN 48, and effective April 30, 2008 for all other MEMBERS funds. No material
uncertain tax positions existed at the time of adoption or as of October 31,
2008. As a result, the funds have not recorded any liabilities for material
unrecognized tax benefits as of October 31, 2008. It is the funds' policy to
recognize accrued interest and penalties related to uncertain tax benefits in
income taxes, as appropriate. Tax years that remain open to examination by
major tax jurisdictions include 2004 through 2008.
EXPENSES: Expenses that are directly related to one fund are charged directly
to that fund. Other operating expenses are prorated to the Funds on the basis
of relative net assets. Class-specific expenses are borne by that class.
CLASSES: Income and realized and unrealized gains/losses are allocated to the
respective classes on the basis of relative net assets.
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98
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENTS: Each fund may engage in repurchase agreements. In a
repurchase agreement, a security is purchased for a relatively short period
(usually not more than 7 days) subject to the obligation to sell it back to
the issuer at a fixed time and price plus accrued interest. The Funds will
enter into repurchase agreements only with member of the Federal Reserve
System and with "primary dealers" in U.S. Government securities. As of April
30, 2009, none of the Funds had open repurchase agreements.
The Trust has established a procedure providing that the securities serving as
collateral for each repurchase agreement must be delivered to the Funds'
custodian either physically or in book-entry form and that the collateral must
be marked to market daily to ensure that each repurchase agreement is fully
collateralized at all times. In the event of bankruptcy or other default by a
seller of a repurchase agreement, a fund could experience one of the
following: delays in liquidating the underlying securities during the period
in which the fund seeks to enforce its rights thereto, possible subnormal
levels of income, declines in value of the underlying securities, or lack of
access to income during this period and the expense of enforcing its rights.
FOREIGN CURRENCY TRANSACTIONS: The books and records are maintained in U.S.
dollars. Foreign currency denominated transactions (i.e., market value of
investment securities, assets and liabilities, purchases and sales of
investment securities, and income and expenses) are translated into U.S.
dollars at the current rate of exchange.
Each fund, except the Cash Reserves Fund, reports certain foreign
currency-related transactions as components of realized gains or losses for
financial reporting purposes, whereas such components are treated as ordinary
income for federal income tax purposes. The Cash Reserves Fund can only invest
in U.S. dollar-denominated foreign money market securities.
The Funds do not isolate the portion of gains and losses on investments in
securities that is due to changes in the foreign exchange rates from that
which is due to change in market prices of securities. Such amounts are
categorized as gain or loss on investments for financial reporting purposes.
FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS: Each fund, except the Cash
Reserves Fund, may purchase and sell forward foreign currency exchange
contracts for defensive or hedging purposes. When entering into forward
foreign currency exchange contracts, the Funds agree to receive or deliver a
fixed quantity of foreign currency for an agreed-upon price on an agreed
future date. These contracts are valued daily. The Funds' net assets reflect
unrealized gains or losses on the contracts as measured by the difference
between the forward foreign currency exchange rates at the dates of entry into
the contracts and the forward rates at the reporting date. The Funds realize a
gain or a loss at the time the forward foreign currency exchange contracts are
settled or closed out with an offsetting contract. Realized and unrealized
gains and losses are included in the Statements of Operations. As of April 30,
2009, none of the Funds had open forward foreign currency exchange contracts.
If a fund enters into a forward foreign currency exchange contract to buy
foreign currency for any purpose, the fund will be required to place cash or
other liquid assets in a segregated account with the fund's custodian in an
amount equal to the value of the fund's total assets committed to the
consummation of the forward contract. If the value of the securities in the
segregated account declines, additional cash or securities will be placed in
the segregated account so that the value of the account will equal the amount
of the fund's commitment with respect to the contract.
FUTURES CONTRACTS: Each fund, except the Cash Reserves Fund, may purchase and
sell futures contracts and purchase and write options on futures contracts.
The Funds will engage in futures contracts or related options transactions to
hedge certain market positions. Upon entering into a futures contract, the
fund is required to pledge to the broker an amount of cash, U.S. Government
securities or other assets, equal to a certain percentage of the contract
(initial margin deposit). Subsequent payments, known as "variation margin,"
are made or received by the fund each day, depending on the daily fluctuations
in the fair value of the futures contract. When a fund enters into a futures
contract, the fund segregates cash or other liquid securities, of any type or
maturity, equal in value to the fund's commitment. The fund recognizes a gain
or loss equal to the daily change in the value of the futures contracts.
Should market conditions move unexpectedly, the fund may not achieve the
anticipated benefits of the futures contracts and may realize a loss. As of
April 30, 2009, none of the Funds had open futures contracts.
DELAYED DELIVERY SECURITIES: Each fund may purchase securities on a
when-issued or delayed delivery basis. "When-issued" refers to securities
whose terms are available and for which a market exists, but that have not
been issued. For when-issued or delayed delivery transactions, no payment is
made until delivery date, which is typically longer than the normal course
- --------------------------------------------------------------------------------
99
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
of settlement, and often a month or more after the purchase. When a fund
enters into an agreement to purchase securities on a when-issued or delayed
delivery basis, the fund segregates cash or other liquid securities, of any
type or maturity, equal in value to the fund's commitment. Losses may arise
due to changes in the market value of the underlying securities, if the
counterparty does not perform under the contract, or if the issuer does not
issue the securities due to political, economic or other factors. As of April
30, 2009, only the High Income Fund had entered into such transactions, the
market values of which are identified in the fund's Portfolio of Investments.
RECLASSIFICATION ADJUSTMENTS: Paid-in capital, undistributed net investment
income, and accumulated net realized gain (loss) have been adjusted in the
Statements of Assets and Liabilities for permanent book-tax differences for
all funds. Differences primarily relate to the tax treatment of net operating
losses, paydown gains and losses, foreign currency gains and losses, and
distributions from real estate investment trusts and passive foreign
investment companies.
REDEMPTION FEES: The Small Cap Value Fund, Small Cap Growth Fund, and the
International Stock Fund will deduct a fee of 2% from redemption proceeds on
Class A and Class B shares held 30 calendar days or less. Redemption fees are
treated as additional paid-in capital to the fund from which the shares are
redeemed and are designed to help offset any costs associated with short-term
shareholder trading.
FAIR VALUE MEASUREMENTS: Each fund adopted the Financial Accounting Standards
Board ("FASB") Statement of Financial Accounting Standards No. 157, Fair Value
Measurements ("FAS 157"), effective November 1, 2008. In accordance with FAS
157, fair value is defined as the price that each fund would receive upon
selling an investment in a timely transaction to an independent buyer in the
principal or most advantageous market of the investment. FAS 157 has
established a three-tier hierarchy to maximize the use of observable market
data "inputs" and minimize the use of unobservable "inputs" and to establish
classification of fair value measurements for disclosure purposes. Inputs
refer broadly to the assumptions that market participants would use in pricing
the asset or liability, including assumptions about risk (for example, the
risk inherent in a particular valuation technique used to measure fair value
including such a pricing model and/or the risk inherent in the inputs to the
valuation technique). Inputs may be observable or unobservable. Observable
inputs are inputs that reflect the assumptions market participants would use
in pricing the asset or liability developed based on market data obtained from
sources independent of the reporting entity. Unobservable inputs are inputs
that reflect the reporting entity's own assumptions about the assumptions
market participants would use in pricing the asset or liability developed
based on the best information available in the circumstances. The three-tier
hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for
similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund's own
assumptions in determining the fair value of investments)
The valuation techniques used by the funds to measure fair value during the
six months ended April 30, 2009 maximized the use of observable inputs and
minimized the use of unobservable inputs. The funds utilized the following
fair value techniques: multi-dimensional relational pricing model and option
adjusted spread pricing; the funds estimated the price that would have
prevailed in a liquid market for an international equity security given
information available at the time of evaluation. As of April 30, 2009, none of
the funds held securities deemed as a Level 3.
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100
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
The following is a summary of the inputs used as of April 30, 2009 in valuing
the funds' investments carried at fair value:
ACTIVE MARKETS FOR SIGNIFICANT OTHER SIGNIFICANT
IDENTICAL INVESTMENTS OBSERVABLE INPUTS UNOBSERVABLE INPUTS FAIR VALUE
FUND (LEVEL 1) (LEVEL 2) (LEVEL 3) AT 04/30/2009
- ---- --------- --------- --------- -------------
Conservative Allocation $ 28,868,430 $ - $- $ 28,868,430
Moderate Allocation 70,855,210 - - 70,855,210
Aggressive Allocation 22,973,865 - - 22,973,865
Cash Reserves 1,718,096 22,320,285 - 24,038,381
Bond 81,877,879 100,750,935 - 182,628,814
High Income 3,984,283 85,148,278 - 89,132,561
Diversified Income 41,251,574 42,355,575 - 83,607,149
Large Cap Value 117,698,249 - - 117,698,249
Large Cap Growth 130,820,639 166,188 - 130,986,827
Mid Cap Value 28,795,773 - - 28,795,773
Mid Cap Growth 37,554,839 - - 37,554,839
Small Cap Value 17,228,892 - - 17,228,892
Small Cap Growth 13,257,018 295,303 - 13,552,321
International Stock 11,034,980 104,195,435 - 115,230,415
NEW ACCOUNTING PRONOUNCEMENTS: In March 2008, the FASB issued Statement of
Financial Accounting Standards No. 161, "Disclosures about Derivative
Instruments and Hedging Activities" ("FAS 161"). FAS 161 is effective for
fiscal years and interim periods beginning after November 15, 2008. FAS 161
requires enhanced disclosures about Funds' derivative and hedging activities.
Management is currently evaluating the impact, if any, on the Funds' financial
statement disclosures. In September 2008, FASB Staff Position No. 133-1 and
FASB Interpretation No. 45-4 (the "FSP"), "Disclosures about Credit Derivatives
and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB
Interpretation No. 45; and Clarification of the Effective Date of FASB
Statement No. 161," was issued and is effective for fiscal years and interim
periods ending after November 15, 2008. The FSP amends FASB Statement No. 133
("FAS 133"), "Accounting for Derivative Instruments and Hedging Activities,"
to require disclosures by sellers of credit derivatives, including credit
derivatives embedded in hybrid instruments. The FSP also clarifies the
effective date of FAS 161, whereby disclosures required by FAS 161 are
effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008.
In April 2009, the Financial Accounting Standards Board ("FASB") issued FASB
Staff Position No. 157-4, "Determining Fair Value When the Volume and Level of
Activity for the Asset or Liability Have Significantly Decreased and
Identifying Transactions That Are Not Orderly" ("FSP 157-4"). FSP 157-4
provides additional guidance for estimating fair value in accordance with FASB
Statement of Financial Accounting Standards No. 157, "Fair Value Measurements"
("FAS 157"), when the volume and level of activity for the asset or liability
have significantly decreased as well as guidance on identifying circumstances
that indicate a transaction is not orderly. FSP 157-4 is effective for fiscal
years and interim periods ending after June 15, 2009. Management is currently
evaluating the impact the adoption of FSP 157-4 will have on the Funds'
financial statement disclosures.
3. ADVISORY, ADMINISTRATION AND DISTRIBUTION AGREEMENTS
For its investment advisory services to the Funds, the Investment Adviser is
entitled to receive a fee, which is computed daily and paid monthly, at an
annualized percentage rate of the average daily value of the net assets of
each fund as follows: 0.20% for the Conservative, Moderate and Aggressive
Allocation Funds (collectively, the Target Allocation Funds"); 0.40% for the
Cash Reserves Fund; 0.50% for the Bond Fund; 0.55% for the High Income Fund;
0.65% for the Diversified Income Fund; 0.55% for the Large Cap Value Fund;
0.75% for the Large Cap Growth Fund; 0.95% for the Mid Cap Value Fund, 0.75%
for the Mid Cap Growth Fund; 1.00% for the Small Cap Value Fund; 1.00% for the
Small Cap Growth Fund; and 1.05% for the International Stock Fund. Except for
the Target Allocations Funds, each fund's management fee will be reduced by
0.05% on assets exceeding $500 million, and by another 0.05% on assets
exceeding $1 billion. The Investment Adviser is solely responsible for the
payment of all fees to the Subadvisers. The Subadvisers for the Funds at April
30, 2009 are Shenkman Capital Management, Inc. for the High Income Fund,
Wellington Management Company, LLP for a portion of the Mid Cap Value Fund and
the entire Mid Cap Growth and Small Cap Value Funds, Paradigm Asset Management
Company, LLC for the Small Cap Growth Fund, and Lazard Asset Management LLC
for the International Stock Fund. The Investment Adviser manages the other
portion of the Mid Cap Value Fund, and the Conservative Allocation Fund,
Moderate Allocation Fund,
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101
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Aggressive Allocation Fund, Cash Reserves Fund, Bond Fund, Diversified Income
Fund, Large Cap Value Fund, and Large Cap Growth Funds.
MCA has contractually agreed, until at least February 27, 2010, to reimburse
all ordinary expenses, other than management, 12b-1, and service fees, of each
fund in excess of the following percentages of the average daily net assets of
the fund (excluding taxes, interest, brokerage commissions and extraordinary
expenses incurred by each fund):
FUND EXPENSE LIMIT FUND EXPENSE LIMIT
- ---- ------------- ---- -------------
Conservative Allocation 0.25% Large Cap Value 0.40%
Moderate Allocation 0.25% Large Cap Growth 0.20%
Aggressive Allocation 0.25% Mid Cap Value 0.20%
Cash Reserves 0.15% Mid Cap Growth 0.40%
Bond 0.15% Small Cap Value 0.25%
High Income 0.20% Small Cap Growth 0.25%
Diversified Income 0.20% International Stock 0.30%
For the six months ended April 30, 2008, the Investment Adviser reimbursed
expenses of $48,305 for the Conservative Allocation Fund, $42,753 for the
Moderate Allocation Fund, $70,780 for the Aggressive Allocation Fund, $38,698
for the Cash Reserves Fund, $52,852 for the Bond Fund, $34,246 for the High
Income Fund, $119,863 for the Diversified Income Fund, $13,412 for the Large
Cap Value Fund, $114,771 for the Large Cap Growth Fund, $91,496 for the Mid
Cap Value Fund, $45,440 for the Mid Cap Growth Fund, $52,768 for the Small Cap
Value Fund, $54,051 for the Small Cap Growth Fund, and $136,166 for the
International Stock Fund.
Any reimbursements made by the Investment Adviser to a fund are subject to
repayment by the fund, to the extent that the fund is able to make the
repayment within its Expense Cap Agreement. Under the Expense Cap Agreement,
such recoupments, measured on a fiscal year basis, must be made within three
years from when the reimbursement or fee reduction occurred and cannot exceed
the expense caps in place during the year in which the expenses were initially
waived.
RECOVERY EXPIRING RECOVERY EXPIRING RECOVERY EXPIRING
FUND OCTOBER 31, 2009 OCTOBER 31, 2010 OCTOBER 31, 2011
- ---- ----------------- ----------------- -----------------
Conservative Allocation $60,600 $125,906 $128,776
Moderate Allocation 58,861 82,473 80,212
Aggressive Allocation 60,571 129,401 154,470
Cash Reserves 90,538 96,265 81,270
Bond 189,515 189,438 149,975
High Income 122,119 127,986 100,940
Diversified Income 210,578 234,637 231,423
Large Cap Value 273,920 6,615 NA
Large Cap Growth 310,809 297,863 231,136
Mid Cap Value 195,647 212,040 213,513
Mid Cap Growth 206,584 100,481 26,486
Small Cap Value NA 116,613 98,515
Small Cap Growth NA 119,778 101,271
International Stock 230,191 317,536 413,679
The Investment Adviser may from time to time voluntary agree to waive a
portion of its fees or expenses related to the Funds. In that regard, the
Investment Adviser waived a portion of management fees on the Cash Reserves
Fund Class A Shares and Class B Shares for the purpose of maintaining a
one-day yield of zero. The amount of the daily waiver is equal to the amount
required to maintain a minimum daily distribution rate of zero. For the six
months ended April 30, 2009, the waivers totaled $10,313 for Class A Shares
and $2,989 for Class B Shares and are reflected as fees waived by the
Investment Advisor in the accompanying Statement of Operations.
CUNA Brokerage Services, Inc. ("CUNA Brokerage") serves as distributor of the
Funds. The Trust adopted Distribution Plans (the "Plans") with respect to the
Trust's Class A, B, and C shares pursuant to Rule 12b-1 under the 1940 Act.
- --------------------------------------------------------------------------------
102
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
Under the Plans, the Trust will pay service fees for Class A, Class B, and
Class C shares at an aggregate annual rate of 0.25% of each fund's daily net
assets attributable to the respective class of shares for all funds except the
Cash Reserves Fund. The Trust will also pay distribution fees for Class B and
Class C shares at an aggregate annual rate of 0.75% of each fund's daily net
assets attributable to their respective classes. The distribution fees are
used to reimburse CUNA Brokerage for its distribution expenses with respect to
Class B and Class C only, including but not limited to: (1) initial and
ongoing sales compensation to selling brokers and others engaged in the sale
of fund shares, (2) marketing, promotional and overhead expenses incurred in
connection with the distribution of fund shares, and (3) interest expenses on
unreimbursed distribution expenses. The service fees are used to compensate
selling brokers and others for providing personal and account maintenance
services to shareholders.
The distributor may from time to time voluntary agree to waive a portion of
its fees or expenses related to the Funds. In that regard, the distributor
waived a portion of 12b-1 fees on the Cash Reserves Fund Class B Shares for
the purpose of maintaining a one-day yield of zero. The amount of the daily
waiver is equal to the amount required to maintain a minimum daily
distribution rate of zero. For the six months ended April 30, 2009, the
waivers totaled $15,839 and are reflected as fees waived by the distributor in
the accompanying Statement of Operations.
In addition to distribution fees, CUNA Brokerage received sales charges paid
by the purchasers or redeemers of the Funds' shares. For the six months ended
April 30, 2009, sales charges received by CUNA Brokerage were as follows:
AMOUNT PAID AMOUNT PAID
-------------------- --------------------
FUND CLASS A CLASS B CLASS C FUND CLASS A CLASS B
- ---- ------- ------- ------- ---- ------- -------
Conservative Allocation $86,714 $17,919 $2,200 Large Cap Value $28,351 $11,853
Moderate Allocation 246,759 35,431 2,247 Large Cap Growth 26,994 10,120
Aggressive Allocation 106,366 10,636 379 Mid Cap Value 17,451 4,443
Cash Reserves - 24,461 Mid Cap Growth 16,872 5,142
Bond 26,285 10,319 Small Cap Value 1,349 89
High Income 24,149 4,869 Small Cap Growth 1,777 145
Diversified Income 35,446 24,741 International Stock 18,797 7,122
Certain officers and trustees of the Funds are also officers of the Investment
Adviser. With the exception of the Chief Compliance Officer, the Funds do not
compensate their officers or affiliated trustees. As part of the Funds'
required compliance program, the Funds pay a pro rata portion of the Chief
Compliance Officer's annual salary. Unaffiliated trustees receive from the
Trust a quarterly retainer, which compensates them for each regular Board or
Committee meeting attended, with additional remuneration paid to the Chair of
the Board and the Chair of the Audit Committee. Unaffiliated trustees also
receive a per meeting fee for each special meeting, if any, attended.
4. DIVIDENDS FROM NET INCOME AND DISTRIBUTIONS OF CAPITAL GAINS
With respect to dividends from net investment income, the Cash Reserves Fund
and Bond Fund declare dividends daily and distribute monthly. The High Income
Fund and Diversified Income Fund declare and distribute dividends monthly. The
Conservative Allocation, Moderate Allocation, Aggressive Allocation, Large Cap
Value Fund, Large Cap Growth Fund, Mid Cap Value Fund, Mid Cap Growth Fund,
Small Cap Value Fund, Small Cap Growth Fund, and the International Stock Fund
declare and distribute dividends annually. The Funds distribute net realized
gains from investment transactions, if any, to shareholders annually.
Income and capital gain distributions, if any, are determined in accordance
with federal income tax regulations, which may differ from accounting
principles generally accepted in the United States of America. Taxable
distributions from income and realized capital gains in the Funds differ from
book amounts earned during the period due to differences in the timing of
capital gains recognition, and due to the reclassification of certain gains or
losses from capital to income. Dividends from net investment income are
determined on a class level. Capital gains are determined on a fund level.
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103
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
5. SECURITIES TRANSACTIONS
For the six months ended April 30, 2009, aggregate cost of purchases and
proceeds from sales of securities, other than short-term investments, were as
follows:
U.S. GOVERNMENT SECURITIES OTHER INVESTMENT SECURITIES
-------------------------- ---------------------------
FUND PURCHASES SALES PURCHASES SALES
- ---- --------- ----- --------- -----
Conservative Allocation $ - $ - $ 8,676,618 $ 8,002,781
Moderate Allocation - - 15,138,008 14,225,041
Aggressive Allocation - - 4,842,382 2,484,757
Bond 48,926,547 41,030,821 10,223,530 8,630,856
High Income - - 37,892,350 13,740,904
Diversified Income 866,439 3,111,301 9,901,845 16,549,664
Large Cap Value - - 26,942,426 16,726,032
Large Cap Growth - - 68,457,350 66,143,940
Mid Cap Value - - 7,637,929 7,733,555
Mid Cap Growth - - 22,668,274 23,581,532
Small Cap Value - - 5,134,137 1,914,534
Small Cap Growth - - 9,391,962 8,297,661
International Stock - - 33,827,187 22,395,510
6. FOREIGN SECURITIES
Each fund may invest in foreign securities, however, the Cash Reserves Fund is
limited to U.S. dollar-denominated foreign money market securities. Foreign
securities refer to securities that are: (1) issued by companies organized
outside the U.S. or whose principal operations are outside the U.S., (2)
issued by foreign governments or their agencies or instrumentalities, (3)
principally traded outside the U.S., or (4) quoted or denominated in a foreign
currency. Foreign securities include American Depositary Receipts ("ADRs"),
European Depositary Receipts ("EDRs"), Global Depositary Receipts ("GDRs"),
Swedish Depositary Receipts ("SDRs") and foreign money market securities.
Dollar-denominated securities that are part of the Merrill Lynch U.S. Domestic
Master Index are not considered a foreign security.
Certain of the funds have reclaim receivable balances, in which the funds are
due a reclaim on the taxes that have been paid to some foreign jurisdictions.
The values of all reclaims are not significant for any of the funds and are
reflected in Other Assets on the Statement of Assets and Liabilities. On a
periodic basis, these receivables are reviewed to ensure the current
receivable balance is reflective of the amount deemed to be collectible.
7. SECURITIES LENDING
Each fund, except the Target Allocation, Cash Reserves, Small Cap Value, and
Small Cap Growth Funds, entered into a Securities Lending Agreement (the
"Agreement") with State Street Bank and Trust Company ("State Street"). Under
the terms of the Agreement, the Funds may lend portfolio securities to
qualified borrowers in order to earn additional income. The Agreement requires
that loans are collateralized at all times by cash or other liquid assets at
least equal to 102% of the value of the securities, which is determined on a
daily basis. At April 30, 2009, none of the funds had securities on loan.
Amounts earned as interest on investments of cash collateral, net of rebates
and fees, are included in the Statement of Operations.
The primary risk associated with securities lending is if the borrower defaults
on its obligation to return the securities loaned because of insolvency or
other reasons, the funds could experience delays and costs in recovering
securities loaned or in gaining access to the collateral.
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104
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
8. TAX INFORMATION
For federal income tax purposes, the funds listed below have capital loss
carryovers as of October 31, 2008, which are available to offet future capital
gains, if any:
FUND 2009 2010 2011 2012 2013 2014 2015 2016
- ---- ---- ---- ---- ---- ---- ---- ---- ----
Conservative Allocation $ - $ - $ - $ - $ - $ - $ - $ 823,887
Moderate Allocation - - - - - - - 4,121,648
Aggressive Allocation - - - - - - - 1,431,110
Bond - - - 85,623 65,261 362,802 57,909 -
High Income 1,720,815 2,445,850 614,259 - - - 72,549 4,653,350
Diversified Income - - - - - - - 3,638,247
Large Cap Value - - - - - - - 9,537,053
Large Cap Growth - - 1,255,080 - - - - 15,286,497
Mid Cap Value - - - - - - - 5,487,785
Mid Cap Growth - - - - - - - 5,654,757
Small Cap Value - - - - - - - 1,362,749
Small Cap Growth - - - - - - - 3,905,861
The Bond Fund utilized $650,180 of prior capital loss carryovers during the
year ended October 31, 2008.
At April 30, 2009, the aggregate gross unrealized appreciation (depreciation)
and net unrealized appreciation (depreciation) for all securities as computed
on a federal income tax basis for each fund were as follows:
FUND APPRECIATION DEPRECIATION NET
- ---- ------------ ------------ ---
Conservative Allocation $ 191,024 $ (5,535,907) $ (5,344,883)
Moderate Allocation 247,947 (21,575,204) (21,327,257)
Aggressive Allocation 169,753 (9,681,044) (9,511,291)
Bond 5,873,094 (6,058,806) (185,712)
High Income 2,370,546 (3,288,767) (918,221)
Diversified Income 2,672,541 (13,915,920) (11,243,379)
Large Cap Value 5,872,478 (37,986,576) (32,114,098)
Large Cap Growth 6,876,379 (18,413,767) (11,537,388)
Mid Cap Value 1,442,803 (9,133,754) (7,690,951)
Mid Cap Growth 3,311,105 (8,225,450) (4,914,345)
Small Cap Value 767,157 (4,918,676) (4,151,519)
Small Cap Growth 1,438,908 (1,212,327) 226,581
International Stock 2,261,187 (36,036,410) (33,775,223)
The differences between cost amounts for book purposes and tax purposes are
primarily due to the tax deferral of losses.
9. CONCENTRATION OF RISK
Investing in certain financial instruments, including forward foreign currency
contracts and futures contracts, involves certain risks, other than that
reflected in the Statements of Assets and Liabilities. Risks associated with
these instruments include potential for an illiquid secondary market for the
instruments or inability of counterparties to perform under the terms of the
contracts, changes in the value of foreign currency relative to the U.S.
dollar and financial statement volatility resulting from an imperfect
correlation between the movements in the prices of the instruments and the
prices of the underlying securities and interest rates being hedged. The High
Income Fund, Mid Cap Growth Fund, and International Stock Fund enter into
these contracts primarily to protect these funds from adverse currency
movements.
Investing in foreign securities involves certain risks not necessarily found
in U.S. markets. These include risks associated with adverse changes in
economic, political, regulatory and other conditions, changes in currency
exchange rates, exchange control regulations, expropriation of assets or
nationalization, imposition of withholding taxes on dividend or interest
payments or capital gains, and possible difficulty in obtaining and enforcing
judgments against foreign entities. Further, issuers of foreign securities
are subject to different, and often less comprehensive, accounting, reporting
and disclosure requirements than domestic issuers.
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
The High Income Fund invests in securities offering high current income which
generally will include bonds in the below investment grade categories of
recognized rating agencies (so-called "junk bonds"). These securities
generally involve more credit risk than securities in the higher rating
categories. In addition, the trading market for high yield securities may be
relatively less liquid than the market for higher-rated securities. The fund
generally invests at least 80% of its assets in high yield securities.
The Target Allocation Funds are structured as fund of funds, meaning that they
invest primarily in the shares of other registered investment companies (the
"underlying funds"), including ETFs. Thus, each fund's investment performance
and its ability to achieve its investment goal are directly related to the
performance of the underlying funds in which it invests; and the underlying
fund's performance, in turn, depends on the particular securities in which
that underlying fund invests and the expenses of that fund. Accordingly, the
Target Allocation Funds are subject to the risks of the underlying funds in
direct proportion to the allocation of their respective assets among the
underlying funds.
Additionally, the Target Allocation Funds are subject to asset allocation risk
and manager risk. Manager risk (i.e., fund selection risk) is the risk that
the fund(s) selected to fulfill a particular asset class under performs their
peer. Asset allocation risk is the risk that the allocation of the fund's
assets among the various asset classes and market segments will cause the fund
to under perform other funds with a similar investment objective.
10. CAPITAL SHARES AND AFFILIATED OWNERSHIP
Each fund is authorized to issue an unlimited number of shares of beneficial
interest with no par value. At April 30, 2009, investments in the Funds by
affiliates were as follows:
CUNA
BROKERAGE
FUND CLASS SERVICES, INC.
- ---- ----- --------------
Diversified Income A $1,327,815
The Target Allocation Funds invest in underlying funds, of which certain
underlying funds (the "affiliated underlying funds"), may be deemed to be
under common control because of the same Board of Trustees. A summary of the
transactions with each affiliated underlying fund during the year ended
October 31, 2008 follows:
BALANCE OF BALANCE OF
SHARES SHARES
HELD AT GROSS GROSS HELD AT VALUE AT REALIZED DISTRIBUTIONS
FUND/UNDERLYING FUND 10/31/2008 ADDITIONS SALES 04/30/2009 04/30/2009 LOSS RECEIVED(2)
- -------------------- ---------- --------- ----- ---------- ---------- ----------- -------------
CONSERVATIVE ALLOCATION FUND
MEMBERS Bond Fund
Class Y 839,783 119,178 79,629 879,332 $ 8,696,590 $ (6,292) $ 153,200
MEMBERS High Income Fund
Class Y 488,267 179,205 48,542 618,930 3,763,097 (69,411) 118,712
MEMBERS International Stock Fund
Class Y 295,746 54,116 32,371 317,491 2,485,952 (246,153) 117,989
MEMBERS Large Cap Growth Fund
Class Y 225,859 28,960 22,774 232,045 2,642,994 (138,215) 9,592
MEMBERS Large Cap Value Fund
Class Y 166,865 80,282 21,724 225,423 2,028,802 (168,416) 41,666
- -----------------------------------------------------------------------------------------------------------------------------
TOTALS $19,617,435 $(628,487) $ 441,159
- --------------------------------------
(1) Distributions received includes distributions from net investment income and
from capital gains from the underlying funds.
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NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
BALANCE OF BALANCE OF
SHARES SHARES
HELD AT GROSS GROSS HELD AT VALUE AT REALIZED DISTRIBUTIONS
FUND/UNDERLYING FUND 10/31/2008 ADDITIONS SALES 04/30/2009 04/30/2009 LOSS RECEIVED(2)
- -------------------- ---------- --------- ----- ---------- ---------- ----------- -------------
MODERATE ALLOCATION FUND
MEMBERS Bond Fund
Class Y 1,068,764 241,994 56,752 1,254,006 $12,402,115 $ (4,296) $ 213,980
MEMBERS High Income Fund
Class Y 661,435 493,277 47,064 1,107,648 6,734,501 (84,992) 233,168
MEMBERS International Stock Fund
Class Y 1,204,052 244,002 66,201 1,381,853 10,819,911 (537,025) 492,215
MEMBERS Large Cap Growth Fund
Class Y 734,970 76,887 38,024 773,833 8,813,957 (270,372) 32,152
MEMBERS Large Cap Value Fund
Class Y 514,669 195,476 32,359 677,786 6,100,073 (258,132) 146,921
MEMBERS Mid Cap Growth Fund
Class Y(1) 481,604 30,039 24,226 487,417 2,071,524 (98,645) -
MEMBERS Small Cap Growth Fund
Class Y(1) 292,912 24,494 19,124 298,282 1,670,381 (114,231) -
MEMBERS Small Cap Value Fund
Class Y 261,345 50,147 16,557 294,935 2,008,510 (82,567) 17,755
- -------------------------------------------------------------------------------------------------------------------------------
TOTALS $50,620,972 $(1,450,260) $1,136,191
BALANCE OF BALANCE OF
SHARES SHARES
HELD AT GROSS GROSS HELD AT VALUE AT REALIZED DISTRIBUTIONS
FUND/UNDERLYING FUND 10/31/2008 ADDITIONS SALES 04/30/2009 04/30/2009 LOSS RECEIVED(2)
- -------------------- ---------- --------- ----- ---------- ---------- ---------- -------------
AGGRESSIVE ALLOCATION FUND
MEMBERS Bond Fund
Class Y - 86,579 2,563 84,016 $ 830,922 $ (198) $ 12,122
MEMBERS High Income Fund
Class Y - 250,432 7,888 242,544 1,474,671 (298) 48,783
MEMBERS International Stock Fund
Class Y 487,475 101,056 30,858 557,673 4,366,580 (254,556) 195,984
MEMBERS Large Cap Growth Fund
Class Y 286,190 44,602 9,719 321,073 3,657,025 (69,180) 12,602
MEMBERS Large Cap Value Fund
Class Y 184,910 38,007 7,420 215,497 1,939,476 (55,535) 47,996
MEMBERS Mid Cap Growth Fund
Class Y(1) 315,566 44,525 9,931 350,160 1,488,179 (39,424) -
MEMBERS Small Cap Growth Fund
Class Y(1) 158,540 29,283 6,493 181,330 1,015,446 (37,978) -
MEMBERS Small Cap Value Fund
Class Y 142,343 26,400 5,614 163,129 1,110,909 (25,419) 9,171
- ------------------------------------------------------------------------------------------------------------------------------
TOTALS $15,883,208 $(482,588) $326,658
- ----------------------------------------------
(1) Non-income producing.
(2) Distributions received includes distributions from net investment income and
from capital gains from the underlying funds.
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OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
FUND EXPENSES PAID BY SHAREHOLDERS
As a shareholder of the Funds, you incur two types of costs: (1)transaction
costs, including sales charges (loads) on purchase payments, and redemption
fees; (2) ongoing costs, including management fees; distribution and/or
service (12b-1) fees; and other fund expenses. In the most recent six-month
period, the Funds limited these ongoing costs; had it not done so, expenses
would have been higher. The examples below are 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.
The examples below are based on an investment of $1,000 invested at the
beginning of the period and held for the entire six month period ended April
30, 2009. Expenses paid during the period in the tables below are equal to the
fund's annualized expense ratio, multiplied by the average account value over
the period, multiplied by 181/365 (to reflect the one-half fiscal year period).
ACTUAL EXPENSES
The table below provides information about actual account values using actual
expenses and actual returns for the Funds. You may use the information in
this table, 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 table for the fund you own under the heading
entitled "Expenses Paid During Period" to estimate the expenses you paid on
your account during this period.
CLASS A CLASS B
-------------------------------------------------------- ------------------------------------
EXPENSES EXPENSES
BEGINNING ENDING ANNUAL PAID ENDING ANNUAL PAID
ACCOUNT ACCOUNT EXPENSE DURING ACCOUNT EXPENSE DURING
FUND VALUE VALUE RATIO PERIOD VALUE RATIO PERIOD
- ---- ----- ------ ----- ------ ----- ----- ------
Conservative Allocation $1,000 $1,029.70 .70% $3.52 $1,026.20 1.45% $ 7.28
Moderate Allocation 1,000 998.10 .70% 3.47 993.10 1.45% 7.17
Aggressive Allocation 1,000 963.10 .70% 3.41 959.30 1.45% 7.04
Cash Reserves 1,000 1,000.70 .43% 2.13 1,000.10 0.55% 2.73
Bond 1,000 1,062.10 .90% 4.60 1,058.10 1.65% 8.42
High Income 1,000 1,134.70 1.00% 5.29 1,130.90 1.75% 9.25
Diversified Income 1,000 958.30 1.10% 5.34 955.00 1.85% 8.97
Large Cap Value 1,000 869.20 1.20% 5.56 866.00 1.95% 9.02
Large Cap Growth 1,000 1,026.10 1.20% 6.03 1,021.40 1.95% 9.77
Mid Cap Value 1,000 970.60 1.40% 6.84 968.00 2.15% 10.49
Mid Cap Growth 1,000 1,031.80 1.40% 7.05 1,028.70 2.15% 10.81
Small Cap Value 1,000 939.10 1.50% 7.21 939.20 2.25% 10.82
Small Cap Growth 1,000 891.20 1.50% 7.03 889.60 2.25% 10.54
International Stock 1,000 967.50 1.60% 7.81 964.30 2.35% 11.45
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OTHER INFORMATION (UNAUDITED)
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CLASS C
----------------------------------------------------------
EXPENSES
BEGINNING ENDING ANNUAL PAID
ACCOUNT ACCOUNT EXPENSE DURING
FUND VALUE VALUE RATIO PERIOD
- ---- ----- ------ ----- ------
Conservative Allocation $1,000 $1,027.40 1.45% $7.29
Moderate Allocation 1,000 993.10 1.45% 7.17
Aggressive Allocation 1,000 960.70 1.45% 7.05
CLASS Y
----------------------------------------------------------
EXPENSES
BEGINNING ENDING ANNUAL PAID
ACCOUNT ACCOUNT EXPENSE DURING
FUND VALUE VALUE RATIO PERIOD
- ---- ----- ------ ----- ------
Bond $1,000 $1,063.40 .65% $3.33
High Income 1,000 1,136.30 .75% 3.97
Large Cap Value 1,000 869.80 .95% 4.40
Large Cap Growth 1,000 1,026.70 .95% 4.77
Mid Cap Value 1,000 972.10 1.15% 5.62
Mid Cap Growth 1,000 1,034.10 1.15% 5.80
Small Cap Value 1,000 1,059.40 1.25% 6.38
Small Cap Growth 1,000 891.70 1.25% 5.86
International Stock 1,000 969.90 1.35% 6.59
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The table below provides information about hypothetical account values and
hypothetical expenses based on the Funds' actual expense ratios and an assumed
rate of return of 5% per year before expenses, which are not the Funds' actual
returns. 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 the 5% hypothetical example of
the funds you own with the 5% hypothetical examples that appear in the
shareholder reports of other similar funds. The Target Allocation Fund's Class
C's hypothetical expenses reflect amounts as if the Class had been in existence
for the entire fiscal half year.
CLASS A CLASS B
---------------------------------------------------------- -------------------------------------
EXPENSES EXPENSES
BEGINNING ENDING ANNUAL PAID ENDING ANNUAL PAID
ACCOUNT ACCOUNT EXPENSE DURING ACCOUNT EXPENSE DURING
FUND VALUE VALUE RATIO PERIOD VALUE RATIO PERIOD
- ---- ----- ------ ----- ------ ----- ----- ------
Conservative Allocation $1,000 $1,021.32 .70% $3.51 $1,017.60 1.45% $7.25
Moderate Allocation 1,000 1,021.32 .70% 3.51 1,017.60 1.45% 7.25
Aggressive Allocation 1,000 1,021.32 .70% 3.51 1,017.60 1.45% 7.25
Cash Reserves 1,000 1,022.66 .43% 2.16 1,022.07 0.55% 2.76
Bond 1,000 1,020.33 .90% 4.51 1,016.61 1.65% 8.25
High Income 1,000 1,019.84 1.00% 5.01 1,016.12 1.75% 8.75
Diversified Income 1,000 1,019.34 1.10% 5.51 1,015.62 1.85% 9.25
Large Cap Value 1,000 1,018.84 1.20% 6.01 1,015.12 1.95% 9.74
Large Cap Growth 1,000 1,018.84 1.20% 6.01 1,015.12 1.95% 9.74
Mid Cap Value 1,000 1,017.85 1.40% 7.00 1,014.13 2.15% 10.74
Mid Cap Growth 1,000 1,017.85 1.40% 7.00 1,014.13 2.15% 10.74
Small Cap Value 1,000 1,017.36 1.50% 7.50 1,013.64 2.25% 11.23
Small Cap Growth 1,000 1,017.36 1.50% 7.50 1,013.64 2.25% 11.23
International Stock 1,000 1,016.86 1.60% 8.00 1,013.14 2.35% 11.73
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OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
CLASS C
----------------------------------------------------------
EXPENSES
BEGINNING ENDING ANNUAL PAID
ACCOUNT ACCOUNT EXPENSE DURING
FUND VALUE VALUE RATIO PERIOD
- ---- ----- ------ ----- ------
Conservative Allocation $1,000 $1,017.60 1.45% $7.25
Moderate Allocation 1,000 1,017.60 1.45% 7.25
Aggressive Allocation 1,000 1,017.60 1.45% 7.25
CLASS Y
----------------------------------------------------------
EXPENSES
BEGINNING ENDING ANNUAL PAID
ACCOUNT ACCOUNT EXPENSE DURING
FUND VALUE VALUE RATIO PERIOD
- ---- ----- ------ ----- ------
Bond $1,000 $1,021.57 .65% $3.26
High Income 1,000 1,021.08 .75% 3.76
Large Cap Value 1,000 1,020.08 .95% 4.76
Large Cap Growth 1,000 1,020.08 .95% 4.76
Mid Cap Value 1,000 1,019.09 1.15% 5.76
Mid Cap Growth 1,000 1,019.09 1.15% 5.76
Small Cap Value 1,000 1,018.60 1.25% 6.26
Small Cap Growth 1,000 1,018.60 1.25% 6.26
International Stock 1,000 1,018.10 1.35% 6.76
Please note that the expenses shown in both tables are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), or redemption fees. The information provided in the
hypothetical example table is useful in comparing ongoing costs only, and will
not help you determine the relative total costs of owning different funds. In
addition, if these transactional costs were included, your costs would have
been higher.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Funds file its complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. Form N-Q is
available to shareholders at no cost on the Funds' website at
www.membersfunds.com and on the SEC's website at www.sec.gov. Form N-Q may
also be reviewed and copied at the Commission's Public Reference Room in
Washington, DC. More information on the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330.
PROXY VOTING POLICIES, PROCEDURES AND RECORDS
A description of the policies and procedures used by the Funds to vote proxies
related to portfolio securities is available to shareholders at no cost on the
Funds' website at www.membersfunds.com or by calling 1-800-877-6089. The proxy
voting records for the Funds for the most recent twelve-month period ended
June 30 are available to shareholders at no cost on the Funds' website at
www.membersfunds.com and on the SEC's website at www.sec.gov.
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OTHER INFORMATION (UNAUDITED)
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BOARD APPROVAL OF INVESTMENT ADVISORY AND SUBADVISORY AGREEMENTS
MEMBERS Capital Advisors, Inc. ("MCA"), MEMBERS Mutual Funds' investment
advisor, CUNA Mutual Insurance Society ("CMIS"), MCA's parent company, and
certain of their affiliates, have entered into an agreement with Madison
Investment Advisors, Inc. ("Madison"), and certain of its affiliates, under
which (among other things) a subsidiary of Madison, Madison Asset Management,
LLC ("MAM"), would become the investment advisor to MEMBERS Mutual Funds,
subject to shareholder approval ("Proposed Transaction"). The Board approved
the proposed investment advisory agreement and investment subadvisory
agreements with MAM at an in-person meeting held on April 15, 2009. Prior to
that meeting, the Board met several times, including with personnel of MCA and
Madison, to discuss the Proposed Transaction. The Board requested and received
information from MCA and Madison regarding the Proposed Transaction and
Madison. In taking these steps, the Independent Trustees were assisted by, and
consulted privately with, independent counsel to the Independent Trustees.
The Board considered that the proposed investment subadvisory agreements were
substantially similar, except as noted, to the current investment subadvisory
agreements the Board had previously approved on December 5, 2008. In
connection with that approval, Board reviewed the performance of each
subadvisor of each Fund at each regular Board meeting, including appropriate
comparative information. At those meetings, the Board also received updates
concerning the investment strategies being pursued by the Funds, changes in
the Funds' investment processes and portfolio management personnel, the
expenses incurred by the Funds, and various other matters which may impact the
Funds' performance and that of the Funds' investment subadvisors. In addition,
before the December 2008 meeting, the Board asked the subadvisors to provide
written information addressing factors to be considered by the Board in
deciding whether or not to approve the agreements. Before the December 2008
meeting, the Board and counsel also asked the subadvisors to expand upon
certain of the written information they had provided, and they held a
conference call with representatives of the investment advisor to discuss the
information provided. At the December 2008 meeting, representatives of each
subadvisor made presentations and responded to follow-up questions from the
Board. After these presentations and discussions, the Board (including a
majority of Independent Trustees) unanimously approved the current subadvisory
agreements. Last, at the April 2009 meeting, the Board requested and received
updated information regarding the subadvisors counsel to the Independent
Trustees also provided the Board with a memorandum reviewing its duties under
the 1940 Act with respect to approval of the agreements. In approving the
proposed investment advisory and investment subadvisory agreements, the Board
considered a number of factors, including those discussed below.
NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY MAM AND THE
SUBADVISORS. The Board received and considered a variety of information
pertaining to the nature, extent and quality of the services to be provided by
MAM and the subadvisors. The Board noted that, except with respect to Mr.
Meier and Mr. Powell, the portfolio managers and, except with respect to the
Mid Cap Value and Mid Cap Growth Funds, the subadvisors currently managing the
Funds' portfolios were expected to continue to do so. MAM provided information
on the professional qualifications and experience of its portfolio management
teams; organization, resources and research capabilities; compliance,
regulatory and litigation experience, portfolio transaction execution and soft
dollar policies and practices, and policies and procedures for allocating
transactions among accounts. After reviewing this information and discussing
it with representatives of MAM, the Board concluded that it was satisfied with
the nature, extent and quality of the services to be provided by MAM.
INVESTMENT PERFORMANCE. The Board received information regarding the composite
performance of MAM. It also noted that most of the Funds were expected to
continue to be managed by the same portfolio managers and/or subadvisors, and
have access to Madison's additional investment personnel and resources. Based
on the foregoing reviews, the Board concluded that the investment experience
of MAM and the proposed Fund management teams was satisfactory.
COST OF SERVICES PROVIDED AND PROFITABILITY. The Board noted that the proposed
management fees were those that had previously been approved by the Board at
its December 5, 2008 meeting. In addition, MAM had agreed to enter into a
services agreement that, when taken with the proposed investment advisory
agreement, would have the effect, for two years following the closing of the
Proposed Transaction, of capping most fees and expenses of the Funds to no
more than the amount incurred (as a percentage of assets) by the Funds for the
fiscal year ended October 31, 2008. In this regard, the Board determined that
no undue burden would be imposed on shareholders as a result of the
appointment of MAM as investment advisor.
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OTHER INFORMATION (UNAUDITED)
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The Board considered that Madison and its affiliates manage certain other
mutual funds with similar investment objectives or principal investment
strategies as the Funds for a lower management fee. The Board also noted that
the investment advisor, not the Funds, pays the subadvisors' fees.
The Board noted that to the extent a Fund invests in other mutual funds also
managed by the investment advisor, the investment advisor receives investment
advisory fees from both the Fund and the underlying mutual fund. The Board was
satisfied in this regard that the investment advisor provides separate
services to each of the Fund and the underlying mutual fund in exchange for
the fees received from it.
Finally, the Board recognized that the unprecedented recent declines in
worldwide stock markets had a corresponding effect on total Fund assets. As a
result, the amount of compensation and fees paid by the Funds for their
management under the proposed investment advisory agreement was expected to be
considerably lower than they had been in the recent periods.
Based on all this information, the Board concluded that the proposed
management fees and total expenses borne by the Funds are reasonable in
relation to the services provided, and that the investment advisor's level of
profitability from its investment advisory agreement with the Funds is well
within reason.
ECONOMIES OF SCALE. The Board had previously received information concerning
how large a Fund must be before it realized economies of scale. The Board also
considered that the management fee breakpoint schedule in place for most of
the Funds, which was previously approved, would continue. In that regard, the
Board believed that proposed investment advisory agreement provides a
reasonable sharing, as between the investment advisor and Fund shareholders,
of the economies of scale that would exist at higher asset levels.
OTHER BENEFITS TO MAM AND THE SUBADVISORS FROM A RELATIONSHIP WITH THE FUNDS.
The Board also considered the nature and extent of other benefits that may
flow to MAM from its relationship with the Funds. As discussed above, the
Board noted that MAM would receive two levels of fees from the Funds that
invest in other Funds. However, the Board was satisfied that MAM would provide
separate services for the two layers of fees paid in such instances.
The Board also considered that MAM may subcontract its non-advisory services to
third parties for lower fees than those paid to MAM by the Funds for those
services. In that regard, MAM may increase its overall profitability in
connection with the services it provides to the Funds.
The Board also noted that MAM expected to and that some of the subadvisors do
execute a portion of the Funds' portfolio transactions on a "soft dollar"
basis, pursuant to which they would receive research services from or through
the executing brokers. In connection with each regular Board meeting, the
Board intends to review the quality of execution of the portfolio transactions
executed by MAM on behalf of the Funds. Finally, the Board noted MAM and each
subadvisor intends to seek to achieve "best execution" in executing all of the
Funds' portfolio transactions, and that it represents its soft dollar
practices comply with applicable law. Based on these reviews, the Board was
satisfied with the expected quality of execution of the Funds' portfolio
transactions, and it did not believe the soft dollar benefits to be received
by MAM or the subadvisors would be excessive, although the Board intends to
monitor this.
Based on the foregoing information, the Board concluded that while additional
benefits may flow to MAM and each subadvisor from its relationships with the
Funds, the nature and extent of these additional benefits are not unreasonable
when considered in the context of the overall services to be provided to the
Funds by MAM and the subadvisors, and fees to be received from the Funds by
MAM.
MAM OVERSIGHT OF SUBADVISORS. The Board further considered the ability of MAM
to supervise each subadvisor's management of the applicable Funds. The Board
concluded that MAM has or will have sufficient resources and expertise to
provide oversight of the subadvisors to the Funds.
CONSIDERATION OF THE PROPOSED TRANSACTION. The Board also considered the terms
of the Proposed Transaction between Madison and MAM, on one hand, and CMIS and
MCA, on the other. Under these terms, CMIS will receive cash payments over a
period of six years and, in addition, will receive a percentage of ongoing
revenues of MAM net of subadvisory and certain other fees. In addition, the
Funds will continue to be distributed through CUNA Brokerage Services, Inc.'s
networking arrangements with the credit unions CMIS serves, and CMIS will have
certain governance rights over MAM with respect to limited Fund matters.
Madison recommended Mr. Blake, Ms. Frank, Mr. Imhoff and Mr. Wheeler as new
Trustees of the Trust, although the Independent Trustees made their own
decision to nominate these individuals to shareholders.
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OTHER INFORMATION (UNAUDITED)
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Also, the Board considered the ability of Madison to make the required cash
payments and the potential impact of these cash-payment requirements on the
financial flexibility of Madison and MAM. The Board also considered the
incentive CMIS and MCA had to recommend MAM as the Funds' new investment
advisor, in light of the payments CMIS will receive if MAM is approved. In
addition, the Board considered representations by CMIS and MCA to the effect
that they intend to focus their efforts on core strategic businesses, leading
them to seek alternative strategies for the management of the Funds. The Board
considered information provided by CMIS and MCA concerning the alternative
strategies and the impact they might have on Fund shareholders. The Board
concluded that, although CMIS and MCA had an incentive to recommend MAM as the
Funds' new investment advisor, the proposed arrangements between MAM and the
Funds nevertheless should be advantageous to Fund shareholders, and are
reasonable in light of CMIS' and MCA's representations.
OTHER CONSIDERATIONS. The Board also considered CMIS' agreement to purchase,
at its own expense, so-called "tail" coverage for the Trustees under the
Trust's current directors' liability insurance policy. In addition, MAM
acknowledged that the expense of a new liability insurance policy covering
only the Independent Trustees would be included in the expenses it will pay
under the proposed investment advisory and services fee structure. Further,
CMIS has agreed to indemnify the current Independent Trustees to the extent
their right of indemnification from the Trusts becomes practically unavailable
or is denied in connection with the Proposed Transaction, subject to the terms
of an indemnification agreement.
BOARD CONCLUSION. After taking the foregoing information and the other
information provided by MAM into account, the Board (including a majority of
Independent Trustees), acting in the exercise of its business judgment,
unanimously approved the proposed investment advisory and investment
subadvisory agreements.
PROXY VOTING RESULTS
A special meeting of shareholder was held on June 25, 2009 at which
shareholders of MEMBERS Mutual Funds, and each of the series noted below,
voted on the following proposals, the results of which are described below.
Proposal 1.01 To elect Philip E. Blake to the Board of Trustees of the Trust
to serve until his successor has been duly elected and qualified
or until his retirement, resignation, death or removal.
FOR WITHHOLD
------ ----------
66.355% 0.636%
Proposal 1.02 To elect Katherine L. Frank to the Board of Trustees of the
Trust to serve until her successor has been duly elected and
qualified or until her retirement, resignation, death or
removal.
FOR WITHHOLD
------ ----------
66.369% 0.622%
Proposal 1.03 To elect James R. Imhoff, Jr. to the Board of Trustees of the
Trust to serve until his successor has been duly elected and
qualified or until his retirement, resignation, death or
removal.
FOR WITHHOLD
------ ----------
66.365% 0.625%
Proposal 1.04 To elect Lorence D. Wheeler to the Board of Trustees of the
Trust to serve until his successor has been duly elected and
qualified or until his retirement, resignation, death or
removal.
FOR WITHHOLD
------ ----------
66.377% 0.614%
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113
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OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Proposal 2. To approve an investment advisory agreement by and between the
Trust, on behalf of each of the Funds, and Madison Asset
Management, LLC.
FUND FOR AGAINST ABSTAIN BROKER NON-VOTE
- ---- ----- ------- ------- ---------------
Cash Reserves 90.149% 0.938% 7.949% 0.964%
Bond 98.832% 0.207% 0.310% 0.651%
High Income 98.873% 0.156% 0.268% 0.703%
Large Cap Value 98.035% 0.350% 0.377% 1.238%
Large Cap Growth 98.936% 0.243% 0.257% 0.565%
Mid Cap Growth 98.268% 0.394% 0.566% 0.772%
Small Cap Value 99.994% 0.000% 0.001% 0.005%
Small Cap Growth 99.994% 0.000% 0.002% 0.005%
International Stock 99.488% 0.110% 0.170% 0.231%
Proposal 3. To amend and restate the fundamental investment restriction
regarding the ability of each Fund to borrow.
FUND FOR AGAINST ABSTAIN BROKER NON-VOTE
- ---- ----- ------- ------- ---------------
Cash Reserves 90.332% 1.088% 7.616% 0.964%
Bond 98.528% 0.466% 0.355% 0.651%
High Income 98.640% 0.365% 0.293% 0.703%
Large Cap Value 97.664% 0.711% 0.388% 1.238%
Large Cap Growth 98.570% 0.588% 0.277% 0.565%
Mid Cap Growth 97.691% 0.953% 0.584% 0.772%
Small Cap Value 95.284% 4.710% 0.001% 0.005%
Small Cap Growth 99.988% 0.006% 0.002% 0.005%
International Stock 99.288% 0.239% 0.242% 0.231%
Proposal 4.a To approve manager of managers authority.
FUND FOR AGAINST ABSTAIN BROKER NON-VOTE
- ---- ----- ------- ------- ---------------
Cash Reserves 90.006% 1.414% 7.616% 0.964%
Bond 98.720% 0.342% 0.287% 0.651%
High Income 98.886% 0.149% 0.263% 0.703%
Large Cap Value 97.759% 0.611% 0.392% 1.238%
Large Cap Growth 98.692% 0.478% 0.266% 0.565%
Mid Cap Growth 97.719% 0.980% 0.530% 0.772%
Small Cap Value 99.990% 0.004% 0.001% 0.005%
Small Cap Growth 99.994% 0.000% 0.002% 0.005%
International Stock 99.332% 0.198% 0.239% 0.231%
Proposal 4.b To approve a subadvisory agreement between Madison Asset
Management, LLC and Shenkman Capital Management, Inc. with
respect to the High Income Fund.
FOR AGAINST ABSTAIN BROKER NON-VOTE
--- ------- ------- ---------------
98.856% 0.165% 0.276% 0.703%
Proposal 4.c To approve a subadvisory agreement between Madison Asset
Management, LLC and Wellington Management Company LLP with
respect to the Small Cap Value Fund.
FOR AGAINST ABSTAIN BROKER NON-VOTE
--- ------- ------- ---------------
99.994% 0.000% 0.001% 0.005%
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114
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OTHER INFORMATION (UNAUDITED)
- --------------------------------------------------------------------------------
Proposal 4.d To approve a subadvisory agreement between Madison Asset
Management, LLC and Paradigm Asset Management, LLC with respect
to the Small Cap Growth Fund.
FOR AGAINST ABSTAIN BROKER NON-VOTE
--- ------- ------- ---------------
99.994% 0.000% 0.002% 0.005%
Proposal 4.e To approve a subadvisory agreement between Madison Asset
Management, LLC and Lazard Asset Management, LLC with respect
to the International Stock Fund.
FOR AGAINST ABSTAIN BROKER NON-VOTE
--- ------- ------- ---------------
99.342% 0.163% 0.263% 0.231%
- --------------------------------------------------------------------------------
115
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MEMBERS MUTUAL FUNDS' TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
Each trustee and officer oversees 32 portfolios in the fund complex, which
consists of the MEMBERS Mutual Funds with 14 portfolios and the Ultra Series
Fund with 18 portfolios. The address of each trustee and officer is 5910
Mineral Point Road, Madison WI 53705. The Statement of Additional Information,
which includes additional information about the trustees and officers, is
available at no cost on the Funds' website at www.membersfunds.com or by
calling 1-800-877-6089.
NAME; POSITION(S) HELD WITH THE FUND & PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS;
YEAR ELECTED(1); YEAR OF BIRTH OTHER OUTSIDE DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------------------------
INDEPENDENT TRUSTEES
- ----------------------------------------------------------------------------------------------------------------------------
Rolf F. Bjelland, CLU Ultra Series Fund: Chairman (since 2006) and Trustee (since 2003);
Chairman (2006) Lutheran Brotherhood Mutual Funds: Chairman and President (1983-2002);
Trustee (2003) Lutheran Brotherhood (now Thrivent Financial): Chief Investment Officer
1938 (1983-2002).
Other Directorships: Regis Corp. (since 1982).
- ----------------------------------------------------------------------------------------------------------------------------
Linda S. Foltz, CPA Ultra Series Fund: Trustee (since 2006); Dougherty Consulting, LLC:
Trustee (2006) President/Owner (since 2005); Direct Supply, Inc.: Executive Vice President
1950 of Corporate Development and Chief Financial Officer (1988-2005).
Other Directorships: Direct Supply, Inc. (since 2003).
- ----------------------------------------------------------------------------------------------------------------------------
Steven P. Riege Ultra Series Fund: Trustee (since 2005); The Rgroup: Owner/President
Trustee (2005) (since 2001); Robert W. Baird & Company: Senior Vice President Marketing
1954 and Vice President Human Resources (1986-2001).
Other Directorships: None
- ----------------------------------------------------------------------------------------------------------------------------
Richard E. Struthers Ultra Series Fund: Trustee (since 2004) and Chair Audit Committee
Chair, Audit Committee (2006) (since 2006); Clearwater Capital Management: Chairman and Chief
Trustee (2004) Executive Officer (since 1998); Park Nicollet Health Services: Director (since
1952 2001) and Chairman, Finance and Investment Committee (since 2006); IAI
Mutual Funds: President and Director (1992-1997). Other Directorships:
Park Nicollet Health Services (since 2001) and Micro Component Technology,
Inc. (since 2008).
- ----------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES AND OFFICERS
- ----------------------------------------------------------------------------------------------------------------------------
David P. Marks, CFA CUNA Mutual Insurance Society: Chief Investment Officer (since 2005); MEMBERS
Trustee, President & Capital Advisors, Inc.: President (since 2005); CUNA Mutual Life Insurance
Principal Executive Officer (2006) Company: Chief Investment Officer (2005-2007); Ultra Series Fund: Trustee,
1947 President, and Principal Executive Officer (since 2006); Citigroup Insurance
Investors: Chief Investment Officer (2004-2005); CIGNA Investments: Chief
Investment Officer, (2002-2004); Green Mountain Partners: Partner (2001-2002);
Allianz Investments: Chief Investment Officer (1991-2001).
Other Directorships: CBRE Realty Finance (since 2005).
- ----------------------------------------------------------------------------------------------------------------------------
Scott R. Powell, CFA MEMBERS Capital Advisors, Inc: Managing Director-Common Stock and MAP
Vice President (2008) (since 2008); Managing Director-Managed Accounts and Mutual Funds
1962 (2006-2008); Ultra Series Fund: Vice President (since 2008); Virchow Krause
Wealth Management, LLC: Partner, Managing Director, (2003-2006);
Jacobus Wealth Management, Inc.: (2001-2003).
- ----------------------------------------------------------------------------------------------------------------------------
Timothy S. Halevan MEMBERS Capital Advisors, Inc.: Vice President and Chief Compliance Officer
Chief Compliance Officer (2009) (since 2009); CUNA Brokerage Services, Inc.: Vice President, Chief Compliance
1961 Officer (since 2001); Ultra Series: Chief Compliance Officer (since 2009).
- ----------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
116
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MEMBERS MUTUAL FUNDS' TRUSTEES AND OFFICERS
- --------------------------------------------------------------------------------
NAME;POSITION(S) HELD WITH THE FUND & PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS;
YEAR ELECTED(1); YEAR OF BIRTH OTHER OUTSIDE DIRECTORSHIPS
- ----------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEES AND OFFICERS (CONTINUED)
- ----------------------------------------------------------------------------------------------------------------------------
Holly S. Baggot MEMBERS Capital Advisors, Inc.: Director, Mutual Funds (since July 2008);
Secretary (1999) Treasurer and Director, Mutual Fund Operations, (2006-2008), Operations Officer-Mutual Funds
Principal Financial Officer (2008) (2005-2006), Senior Manager-Product and Fund Operations (2001-2005);
Assistant Treasurer (1999-2007) Ultra Series Fund: Treasurer and Principal Financial Officer (since 2008);
1960 Secretary (since 1999), and Assistant Treasurer (1997-2007).
- ----------------------------------------------------------------------------------------------------------------------------
Dan P. Owens MEMBERS Capital Advisors, Inc.: Director, Investment Operations, (since June
Assistant Treasurer (2000) 2006), Investment Operations Officer (2005-2006), and Senior Manager-
1966 Portfolio Operations (2001-2005); Ultra Series Fund: Assistant Treasurer
(since 2000).
- ----------------------------------------------------------------------------------------------------------------------------
Cheryl R. Gilge MEMBERS Capital Advisors, Inc.: Operations Associate, Mutual Fund
Assistant Treasurer (2009) Administration (since 2007), Fund Administration Analyst (2005-2007),
1975 Investment Support Manager (1999-2005); Ultra Series Fund: Assistant
Treasurer (since 2009).
- ----------------------------------------------------------------------------------------------------------------------------
(1) The board of trustees adopted term limits authorizing each independent
trustee to serve in such capacity until reaching the age of 75.
- --------------------------------------------------------------------------------
117
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- --------------------------------------------------------------------------------
118
[LOGO OF MEMBERS MUTUAL FUNDS](TM)
MEMBERS MUTUAL FUNDS --------------------
- ------------------------------------------------------- Presorted Standard
U.S. POSTAGE
MEMBERS Mutual Funds PAID
Post Office Box 8390 Louisville, KY
Boston, MA 02266-8390 Permit No. 1051
1 (800) 877-6089 --------------------
www.membersfunds.com
Distributed by:
CUNA Brokerage Services, Inc.
Office of Supervisory Jurisdiction
2000 Heritage Way
Waverly, IA 50677-9202
Member FINRA/SIPC
4460-PI060
Rev:0609
ITEM 2. CODE OF ETHICS.
Not applicable for semi-annual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable for semi-annual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable for semi-annual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS
Schedule I - Investments in Securities of Unaffiliated Issuers as of April 30,
2009 is included as part of the report to shareholders filed under Item 1
hereto.
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 PURCHASES.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The President and Treasurer of the Registrant have concluded
that the Registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the 1940 Act) are effective based
on their evaluation of the disclosure controls and procedures as
of a date within 90 days of the filing date of this report.
(b) There have been no changes to the Registrant's internal control
over financial reporting (as defined in Rule 30a-3(d) under the
1940 Act) that occurred during the second fiscal quarter of the
period covered by this report that have materially affected, or
are reasonably likely to materially affect, the Registrant's
internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable for semi-annual reports.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002, are filed herewith.
(a)(3) Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002, are furnished 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.
MEMBERS MUTUAL FUNDS
/s/David P. Marks
BY: ------------------
David P. Marks
President
DATE: 06/29/09
--------
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.
/s/David P. Marks
BY: ------------------
David P. Marks
President, MEMBERS Mutual Funds
Date: 06/29/09
--------
/s/Holly S. Baggot
BY: ------------------
Holly S. Baggot
Treasurer, MEMBERS Mutual Funds
Date: 06/29/09
--------
EXHIBIT INDEX
12(a)(1) Not applicable for semi-annual reports.
12(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of
2002, are filed herewith.
12(a)(3) Not applicable.
12(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of
2002, are furnished herewith.