UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21587
Old Mutual Advisor Funds
(Exact name of registrant as specified in charter)
--------
4643 South Ulster Street, Suite 600
Denver, CO 80237
(Address of principal executive offices)
Julian F. Sluyters
4643 South Ulster Street, Suite 600, Denver, CO 80237
(Name and address of agent for service)
Copies to:
Jay G. Baris, Esq. Andra C. Ozols, Esq.
Kramer Levin Naftalis & Frankel LLP Old Mutual Capital, Inc.
1177 Avenue of the Americas 4643 South Ulster Street, Suite 600
New York, New York 10036 Denver, CO 80237
(212) 715-9100 (720) 200-7725
Registrant's telephone number, including area code: 1-888-772-2888
Date of fiscal year end: July 31
Date of reporting period: July 31, 2007
Item 1. Reports to Stockholders.
[OLD MUTUAL ADVISOR FUNDS LOGO]
Old Mutual Advisor Funds
ANNUAL REPORT July 31, 2007
Asset Allocation Portfolios Equity Funds
- --------------------------- ------------
Old Mutual Asset Allocation Conservative Portfolio Old Mutual Analytic Defensive Equity Fund
Old Mutual Asset Allocation Balanced Portfolio Old Mutual Analytic Global Defensive Equity Fund
Old Mutual Asset Allocation Moderate Growth Portfolio Old Mutual Clay Finlay China Fund
Old Mutual Asset Allocation Growth Portfolio Old Mutual Clay Finlay Emerging Markets Fund
Old Mutual Copper Rock Emerging Growth Fund
Old Mutual International Equity Fund
TABLE OF CONTENTS
About This Report 1
Message to Shareholders 3
Management Discussion of Fund Performance
and Schedules of Investments
Asset Allocation Portfolios
Old Mutual Asset Allocation Conservative Portfolio
Class A (OMCAX), Class C (OMCCX), Class Z (OMCZX), Institutional Class (OMCIX) 4
Old Mutual Asset Allocation Balanced Portfolio
Class A (OMABX), Class C (OMBCX), Class Z (OMBZX), Institutional Class (OMBLX) 21
Old Mutual Asset Allocation Moderate Growth Portfolio
Class A (OMMAX), Class C (OMMCX), Class Z (OMMZX), Institutional Class (OMMIX) 45
Old Mutual Asset Allocation Growth Portfolio
Class A (OMGAX), Class C (OMCGX), Class Z (OMGZX), Institutional Class (OMGIX) 69
Equity Funds
Old Mutual Analytic Defensive Equity Fund
Class A (ANAEX), Class C (ANCEX), Class Z (ANDEX), Institutional Class (ANIEX) 90
Old Mutual Analytic Global Defensive Equity Fund
Class A (ANGAX), Class C (ANGCX), Class Z (ANGZX), Institutional Class (ANGIX) 100
Old Mutual Clay Finlay China Fund
Class A (OMNAX), Class C (OMNCX), Class Z (OMNZX), Institutional Class (OMINX) 109
Old Mutual Clay Finlay Emerging Markets Fund
Class A (OMRAX), Class C (OMRCX), Class Z (OMRZX), Institutional Class (OMRIX) 114
Old Mutual Copper Rock Emerging Growth Fund
Class A (OMARX), Class C (OMCRX), Class Z (OMZRX), Institutional Class (OMIRX) 119
Old Mutual International Equity Fund
Class A (OMXAX), Class C (OMXCX), Class Z (OMXZX), Institutional Class (OMXIX) 125
TABLE OF CONTENTS - concluded
Statements of Assets and Liabilities 132
Statements of Operations 134
Statements of Changes in Net Assets 136
Financial Highlights 140
Notes to Financial Statements 145
Report of Independent Registered Public Accounting Firm 161
Notice to Shareholders 162
Proxy Voting and Portfolio Holdings 163
Fund Expenses Examples 164
Activities and Composition of the Board of Trustees
and Officers of the Trust 166
Considerations of the Board in Approving
Investment Advisory Agreements and Investment Sub-Advisory Agreements 168
ABOUT THIS REPORT
HISTORICAL RETURNS
- --------------------------------------------------------------------------------
All total returns mentioned in this report account for the change in a Fund's
per-share price and the reinvestment of any dividends and capital gain
distributions. If your account is set up to receive Fund dividends and
distributions in cash rather than reinvest them, your actual return may differ
from these figures. The Funds' performance results do not reflect the deduction
of taxes that a shareholder would pay on Fund distributions or on the redemption
of Fund shares.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed, may
be worth more or less than their original cost. Performance results represent
past performance, and current performance may be higher or lower. Please call
888-772-2888 toll-free or visit oldmutualfunds.com for performance results
current to the most recent month-end.
Performance results for short periods of time may not be representative of
longer-term results. Performance without load assumes that no front-end or
contingent deferred sales charge applied or the investment was not redeemed.
Performance with load assumes that a front-end or contingent deferred sales
charge applied to the extent applicable. The Funds each offer Class A, Class C,
Class Z and Institutional Class shares. Class A shares have a current maximum
up-front sales charge of 5.75% and are subject to an annual service fee of
0.25%. Class C shares are subject to aggregate annual distribution and service
fees of 1.00% and will be subject to a contingent deferred sales charge of 1.00%
if redeemed within the first 12 months of purchase. Class Z and Institutional
Class shares are only available to eligible shareholders. The returns for
certain periods may reflect fee waivers and/or reimbursements in effect for that
period; absent fee waivers and reimbursements, performance would have been
lower.
FUND DATA
- --------------------------------------------------------------------------------
This report reflects views, opinions and Fund holdings as of July 31, 2007, the
end of the report period, and are subject to change. The information is not a
complete analysis of every aspect of any sector, industry, security or of the
Funds. Opinions and forecasts regarding industries, companies and/or themes and
Fund composition and holdings, are subject to change at any time based on market
and other conditions, and should not be construed as a recommendation of any
specific security or as investment advice. Percentage holdings as of July 31,
2007 are included in each Fund's Schedule of Investments. There is no assurance
that the securities purchased remain in a Fund or that securities sold have not
been repurchased.
There are risks associated with mutual fund investing, including the risk of
loss of principal. There is no assurance that the investment process will
consistently lead to successful results. There are also risks associated with
small- and mid-cap investing, including limited product lines, less liquidity
and small market share. Investments in foreign securities may entail unique
risks, including political, market and currency risks. An investment in a
regional fund may involve greater risk and volatility than a more diversified
investment. Investing in fixed income securities involves interest rate risk.
When interest rates rise, the value of fixed income securities generally
decreases. High-yield bonds involve a greater risk of default and price
volatility than U.S. Government and other higher-quality bonds. An investment in
a Fund is not a bank deposit. It is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
Certain Funds utilize call options, short selling and derivatives as part of
their investment strategy. Call options involve certain risks, such as limited
gains and lack of liquidity of the underlying securities, and are not suitable
for all investors. There are risks associated with short selling, including the
risk that a Fund may have to cover the short position at a higher price than the
short price, resulting in a loss. A Fund's loss on a short sale is potentially
unlimited as a loss occurs when the value of a security sold short increases.
Derivatives are often more volatile than other investments and may magnify a
Fund's gains or losses. A Fund could be negatively affected if the change in
market value of the securities fails to correlate with the value of the
derivatives purchased or sold.
COMPARATIVE INDEXES
- --------------------------------------------------------------------------------
The comparative indexes discussed in this report are meant to provide a basis
for judging the Funds' performance against specific benchmarks. Each index shown
accounts for both changes in security price and reinvestment of dividends and
distributions, but does not reflect the cost of managing a mutual fund. The
total return figures for the Morgan Stanley Capital International ("MSCI")
indexes assume change in security prices and the deduction of local taxes. The
Funds may significantly differ in holdings and composition from an index.
Individuals cannot invest directly in an index.
1
ABOUT THIS REPORT - concluded
Indexes:
Lehman Brothers U.S. Aggregate Index
The unmanaged Lehman Brothers U.S. Aggregate Index is a widely recognized
measure of the aggregate bond market. The unmanaged index is market
value-weighted inclusive of accrued interest.
MSCI China Index
The unmanaged MSCI China Index is a market capitalization-weighted index of
Chinese equities that includes Red Chips and H shares listed on the Hong Kong
Stock Exchange and B shares listed on the Shanghai and Shenzhen Exchanges. Red
Chips are Mainland Chinese companies listed on the Hong Kong Stock Exchange that
are incorporated in Hong Kong. H Shares are Mainland Chinese companies listed on
the Hong Kong Stock Exchange that are incorporated in Mainland China and
approved by the China Securities Regulatory Commission for a listing in Hong
Kong. B Shares are Mainland Chinese stocks listed on the Shanghai and Shenzhen
stock exchanges, available to Chinese and foreign investors.
MSCI EAFE(R) Index
The unmanaged MSCI EAFE(R) Index is a market capitalization-weighted index that
measures the performance of stock markets in various countries in Europe,
Australasia and the Far East. The MSCI EAFE Index contains a representative
sampling of over 900 small-, medium- and large-capitalization stocks from
countries in these regions.
MSCI Emerging Markets Index
The unmanaged MSCI Emerging Markets Index is a market capitalization-weighted
index of over 650 stocks traded in 27 of the world's emerging equity markets.
MSCI World Index
The unmanaged MSCI World Index is a market capitalization-weighted index that
measures the performance of major world stock markets, including the United
States.
Russell 2000(R) Index
The unmanaged Russell 2000(R) Index is comprised of smaller cap common stocks of
the 2,000 U.S. public companies next in size after the largest 1,000 publicly
traded U.S. companies.
Russell 2000(R) Growth Index
The Russell 2000(R) Growth Index measures the performance of those Russell 2000
companies with higher price-to-book ratios and higher forecasted growth rates.
Russell 3000(R) Value Index
Measures the performance of those Russell 3000 Index companies with lower
price-to-book ratios and lower forecasted growth values. The stocks in this
index are also members of either the Russell 1000 Value or the Russell 2000
Value Indexes.
Russell 3000(R) Growth Index
The unmanaged Russell 3000(R) Growth Index measures the performance of those
Russell 3000(R) Index companies with higher price-to-book ratios and higher
forecasted growth values.
Standard & Poor's 500 Index
The unmanaged Standard & Poor's 500 ("S&P 500") Index is a market value-weighted
index of large-cap common stocks considered representative of the broad market.
S&P MidCap 400 Index
The unmanaged S&P MidCap 400 Index is a widely recognized mid-cap index of 400
domestic mid-cap stocks chosen for their market capitalization, liquidity, and
industry group representations.
Standard & Poor's SuperComposite 1500 Index
The unmanaged Standard & Poor's SuperComposite 1500 ("S&P 1500") Index is a
broad-based, capitalization-weighted index comprising 1,500 stocks of large-cap,
mid-cap and small-cap U.S. companies.
Index returns and statistical data included in this report are provided by
Bloomberg, FactSet and Lehman Brothers.
2
MESSAGE TO SHAREHOLDERS
Dear Shareholder:
I am pleased to report that your Old Mutual Advisor Funds investment posted
positive returns during the one-year period ended July 31, 2007. For more
complete information, please refer to the subsequent pages, which discuss the
Fund's individual activities and performance in greater detail.
Your Fund's performance stands out against an economic environment some analysts
termed a "Goldilocks" scenario - an economic state that is neither "too hot" nor
"too cold," but "just right" for supporting positive returns to investors.
Growth stocks outperformed their value counterparts based on an annual
comparison of the broad-market Russell 3000(R) Growth and Russell 3000(R) Value
Indexes. As if on cue, the stock market's sector caps also played their part.
Neither too big nor too small, mid caps, as measured by the S&P MidCap 400
Index, gained 16.73%, for the year ended July 31, 2007. Mid-cap stocks
outperformed the small-cap category, as measured by the Russell 2000(R) Index
and the large-cap benchmark S&P 500 Index, which gained 12.12% and 16.13%,
respectively.
During much of the period, warning signs such as rising energy prices, interest
rate uncertainty and a slowing housing market were offset by record profit
margins, increased capital spending and continued share buybacks. The fiscal
year ended, however, with investor enthusiasm tempered by two cautionary flags -
the strengthening world economy raised concerns about increased inflation and a
softening U.S. housing market placed downward price pressure on securities
linked to home mortgages. Overall, consumer sentiment declined as additional
concerns over the weakening U.S. housing market surfaced and retail sales showed
signs of weakness.
In addition to delivering attractive Fund performance for the period, we took
steps to strengthen and expand our executive management team, while raising the
bar in our efforts to build an even more responsive organization. We also took
steps to provide shareholders with broader access to a wide range of competitive
and innovative funds through Old Mutual Advisor Funds and we undertook a
comprehensive renovation of our shareholder Web site, oldmutualfunds.com. For
more information about the wide array of mutual funds now available to our
shareholders, visit oldmutualfunds.com or speak to your Financial Advisor.
As always, we are grateful for your support and will continue to work diligently
to enhance your Old Mutual experience. Please do not hesitate to contact us if
there is anything we can do to serve you better. Feel free to contact me
directly, at President@oldmutualcapital.com, or please see the back cover of
this report for other appropriate contact information.
Sincerely,
/s/ Julian Sluyters
Julian Sluyters
President
Old Mutual Advisor Funds
Mr. Sluyters joined Old Mutual in September 2006 as President of Old Mutual
Advisor Funds. Prior to joining Old Mutual, Julian served as President and Chief
Executive Officer for the Scudder Group of Funds. He also served as Managing
Director for UBS Global Asset Management, as well as President and Chief
Executive Officer for UBS Fund Services, capping a 12-year tenure that began in
1991 as Treasurer for the PaineWebber Funds. Prior to that, he held the position
of Senior Audit Manager at Ernst & Young.
3
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Strategic Asset Allocation Consultant: Ibbotson Associates Advisors, LLC
Performance Highlights
o For the one-year period ended July 31, 2007, the Fund's Class A shares
gained 9.40% at net asset value, while the S&P 1500 Index returned 16.10%
and the Lehman Brothers U.S. Aggregate Index returned 5.56%.
o During the one-year period, the Fund's absolute gains were impacted
positively by Acadian Asset Management, Inc.'s international equity
mandate, Provident Investment Counsel's large-cap growth mandate and
Liberty Ridge Capital, Inc.'s mid-cap blend strategy.
o Dwight Asset Management Company's money market mandate and Barrow, Hanley,
Mewhinney & Strauss, Inc.'s intermediate and U.S. core bond strategies
generated the most modest returns for the Fund during this period.
o At the individual stock level, personal computer and related products
designer, manufacturer and marketer Apple; Latin American cellular
communication services provider NII Holdings and semiconductor manufacturer
Nvidia contributed to the Fund's absolute performance.
o Specialty eatery Starbucks, agricultural commodity and product firm
Archer-Daniels-Midland and Japanese manufacturing conglomerate Fujikura (no
longer a Fund holding) were among the Fund's primary detractors.
Q. How did the Fund perform relative to its benchmarks?
A. For the one-year period ended July 31, 2007, the Old Mutual Asset
Allocation Conservative Portfolio's (the "Fund") Class A shares gained
9.40% at net asset value, while the S&P 1500 Index returned 16.10% and the
Lehman Brothers U.S. Aggregate Index returned 5.56%. Performance for all
share classes can be found on page 6.
Q. What investment environment did the Fund face during the past year?
A. Ibbotson Associates Advisors, LLC ("Ibbotson") analyzes 13 asset classes
for inclusion in the Fund. During the period, returns for all of these
asset classes exceeded Ibbotson's long-term expectations except real estate
and small-cap value, both of which still produced positive returns. Growth
stocks led value stocks; mid-caps outperformed large- and small-cap stocks;
a falling dollar helped international equities post strong gains; and,
while the yield curve remained flat compared to historical standards, bond
returns were relatively typical. Volatility, as measured by standard
deviation for all asset classes, was low compared to historical standards.
Q. Which market factors influenced the Fund's relative performance?
A. The factors noted above combined to produce a healthy overall investment
environment for the Fund. While the media's attention has recently been
focused on the conditions of the sub-prime mortgage market, the Fund has
minimal exposure to real estate securities and therefore avoided the flat
returns produced by this asset class over the past year. The Fund was
positioned relatively well for the outperformance of growth stocks relative
to value stocks given Ibbotson's belief that value is positioned to
outperform growth over the long-term.
Q. How did portfolio composition affect Fund performance?
A. All twelve Fund mandates produced positive returns. During the one-year
period, the Fund's absolute gains were impacted positively by Acadian Asset
Management, Inc.'s international equity mandate, Provident Investment
Counsel's large-cap growth mandate and Liberty Ridge Capital, Inc.'s
mid-cap blend strategy. Dwight Asset Management Company's money market
mandate and Barrow, Hanley, Mewhinney & Strauss, Inc.'s intermediate and
U.S. core bond strategies generated the most modest returns for the Fund
during this period. At the individual stock level, personal computer and
related products designer, manufacturer and marketer Apple; Latin American
cellular communication services provider NII Holdings and semiconductor
manufacturer Nvidia contributed to the Fund's absolute performance. On the
other hand, specialty eatery Starbucks, agricultural commodity and product
firm Archer-Daniels-Midland and Japanese manufacturing conglomerate
Fujikura (no longer a Fund holding) were among the Fund's primary
detractors.
Asset Allocation Conservative Portfolio
4
Top Ten Holdings
as of July 31, 2007
U.S. Treasury Note,
3.875%, 07/15/10 3.1%
- ----------------------------------------------
U.S. Treasury Note,
4.500%, 05/15/17 2.6%
- ----------------------------------------------
U.S. Treasury Bond,
4.500%, 03/31/12 2.1%
- ----------------------------------------------
Federal Home Loan Mortgage
Corporation - Gold TBA,
6.000%, 08/01/37 1.9%
- ----------------------------------------------
Federal National Mortgage
Association, TBA,
6.500%, 08/15/37 1.5%
- ----------------------------------------------
U.S. Treasury Note,
4.750%, 05/15/14 1.3%
- ----------------------------------------------
U.S. Treasury Bond,
4.500%, 02/15/36 1.1%
- ----------------------------------------------
Federal National Mortgage
Association,
5.500%, 12/01/35 1.1%
- ----------------------------------------------
U.S. Treasury Bond,
4.625%, 02/15/17 1.1%
- ----------------------------------------------
U.S. Treasury Note,
4.625%, 02/29/12 1.0%
- ----------------------------------------------
As a % of Total
Fund Investments 16.8%
- ----------------------------------------------
Q. What is the investment outlook?
A. Ibbotson notes that overall the U.S. economy appears to be in good shape
and expects it to continue to grow at a reasonable pace through 2007.
Ibbotson also believes that the U.S. stock market seems fairly priced at
present and that large-cap stocks appear more attractive than small-cap
stocks in the near term, from both a valuation and momentum perspective.
Ibbotson intends to maintain an overweight of U.S. large-cap stocks
relative to U.S. small-cap stocks.
Ibbotson notes that upward pressure on U.S. inflation and U.S. interest
rates will likely be seen over the next two to three years, affecting
intermediate- and long-maturity bond yields. While Ibbotson sees no clear
direction in the near future for long-term yields, it expects the yield
curve to become steeper in the long run. To that end, the strategic asset
allocation consultant will continue an overweight of the short-term end of
the yield curve and an underweight of the intermediate- and long-term ends
of the curve.
Asset Allocation Conservative Portfolio
5
OLD MUTUAL ASSET ALLOCATION
CONSERVATIVE PORTFOLIO - continued
- --------------------------------------------------------------------------------
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- ---------------------------------------------------------------------------------------------------
1 Year Annualized
Inception Date Return Since Inception
- ---------------------------------------------------------------------------------------------------
Class A with front-end load 9/30/04 3.10% 4.54%
Class A without load 9/30/04 9.40% 6.74%
Class C with deferred sales load 9/30/04 7.57% 5.96%
Class C without deferred sales load 9/30/04 8.57% 5.96%
Class Z 12/09/05 9.55% 7.39%
Institutional Class 9/30/04 9.74% 7.03%
S&P 1500 Index 9/30/04 16.10% 12.27%
Lehman Brothers U.S. Aggregate Index 9/30/04 5.56% 3.37%
- ---------------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative indexes can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
2.35% and 1.50%; 2.75% and 2.25%; 1.75% and 1.25%; 1.75% and 1.25%,
respectively. Expenses for Class Z shares are based on estimated amounts.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
9/30/04 7/31/05 7/31/06 7/31/07
Asset Allocation Conservative Portfolio, Institutional Class $10,000 $10,660 $11,048 $12,125
Asset Allocation Conservative Portfolio, Class A $9,425 $10,024 $10,364 $11,338
Asset Allocation Conservative Portfolio, Class C $10,000 $10,574 $10,852 $11,782
S&P 1500 Index $10,000 $11,359 $11,954 $13,879
Lehman Brothers US Aggregate Bond Index $10,000 $10,256 $10,405 $10,984
Past performance is not a guarantee of future results. The graph above compares
an investment made in the Fund's Class A, C and Institutional shares on the
inception date of 9/30/04 to an investment made in unmanaged securities indexes
on that date. The performance of the Fund's Class A shares shown in the line
graph takes into account the maximum initial sales charge. The Fund's
performance in this chart and the performance table assumes reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Common Stock 23.3%
Corporate Bonds 17.6%
U.S. Government Agency Obligations 18.8%
U.S. Treasury Obligations 15.7%
Foreign Common Stock 6.9%
Mortgage Related 5.5%
Cash Equivalent 10.0%
Foreign Bonds 2.1%
Investment Companies 0.1%
100.0%
6
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 24.3%
Aerospace/Defense - 0.6%
Boeing 1,166 $ 121
General Dynamics 980 77
Rockwell Collins 1,240 85
--------------
Total Aerospace/Defense 283
- ---------------------------------------------------------------------
Aerospace/Defense-Equipment - 0.1%
Alliant Techsystems* 450 45
DRS Technologies 61 3
Goodrich 85 5
--------------
Total Aerospace/Defense-Equipment 53
- ---------------------------------------------------------------------
Agricultural Chemicals - 0.3%
Agrium 750 31
Monsanto 1,840 119
--------------
Total Agricultural Chemicals 150
- ---------------------------------------------------------------------
Agricultural Operations - 0.0%
Archer-Daniels-Midland 550 18
Tejon Ranch* 50 2
--------------
Total Agricultural Operations 20
- ---------------------------------------------------------------------
Airlines - 0.1%
AMR* 800 20
Delta Air Lines* 160 3
Southwest Airlines 13 -
UAL* 145 6
US Airways Group* 105 3
--------------
Total Airlines 32
- ---------------------------------------------------------------------
Appliances - 0.0%
Whirlpool 23 2
--------------
Total Appliances 2
- ---------------------------------------------------------------------
Applications Software - 0.2%
Citrix Systems* 195 7
Intuit* 225 6
Microsoft 1,780 52
Red Hat* 710 15
--------------
Total Applications Software 80
- ---------------------------------------------------------------------
Auto-Cars/Light Trucks - 0.1%
Ford Motor 2,149 18
General Motors 350 12
--------------
Total Auto-Cars/Light Trucks 30
- ---------------------------------------------------------------------
Auto-Medium & Heavy Duty Trucks - 0.0%
Paccar 3 -
--------------
Total Auto-Medium & Heavy Duty Trucks -
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Beverages-Non-Alcoholic - 0.0%
Coca-Cola 370 $ 19
--------------
Total Beverages-Non-Alcoholic 19
- ---------------------------------------------------------------------
Brewery - 0.1%
Molson Coors Brewing, Cl B 500 44
--------------
Total Brewery 44
- ---------------------------------------------------------------------
Broadcast Services/Programming - 0.0%
Clear Channel Communications 8 -
--------------
Total Broadcast Services/Programming -
- ---------------------------------------------------------------------
Building Products-Cement/Aggregate - 0.1%
Martin Marietta Materials 220 30
--------------
Total Building Products-Cement/Aggregate 30
- ---------------------------------------------------------------------
Building Products-Light Fixtures - 0.1%
Genlyte Group* 350 24
--------------
Total Building Products-Light Fixtures 24
- ---------------------------------------------------------------------
Building-Heavy Construction - 0.0%
Washington Group International* 70 6
--------------
Total Building-Heavy Construction 6
- ---------------------------------------------------------------------
Cable TV - 0.1%
Comcast, Cl A* 950 25
DIRECTV Group* 982 22
--------------
Total Cable TV 47
- ---------------------------------------------------------------------
Casino Hotels - 0.2%
Harrah's Entertainment 7 1
MGM Mirage* 1,170 85
--------------
Total Casino Hotels 86
- ---------------------------------------------------------------------
Casino Services - 0.0%
International Game Technology 570 20
--------------
Total Casino Services 20
- ---------------------------------------------------------------------
Cellular Telecommunications - 0.7%
Alltel 8 1
MetroPCS Communications* 2,445 89
NII Holdings* 2,757 232
--------------
Total Cellular Telecommunications 322
- ---------------------------------------------------------------------
Chemicals-Diversified - 0.2%
Celanese, Ser A 700 26
E.l. du Pont de Nemours 1,125 53
Lyondell Chemical 140 6
--------------
Total Chemicals-Diversified 85
- ---------------------------------------------------------------------
7
OLD MUTUAL ASSET ALLOCATION
CONSERVATIVE PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Chemicals-Specialty - 0.1%
Hercules* 272 $ 5
Lubrizol 650 41
--------------
Total Chemicals-Specialty 46
- ---------------------------------------------------------------------
Coal - 0.1%
Arch Coal 165 5
Consol Energy 603 25
Peabody Energy 640 27
--------------
Total Coal 57
- ---------------------------------------------------------------------
Commercial Banks-Southern US - 0.1%
Colonial BancGroup 1,750 38
--------------
Total Commercial Banks-Southern US 38
- ---------------------------------------------------------------------
Commercial Services - 0.0%
Alliance Data Systems* 75 6
ChoicePoint* 170 6
--------------
Total Commercial Services 12
- ---------------------------------------------------------------------
Communications Software - 0.0%
Avid Technology* 110 4
--------------
Total Communications Software 4
- ---------------------------------------------------------------------
Computer Services - 0.1%
Cognizant Tech Solutions, Cl A* 310 25
Electronic Data Systems 140 4
--------------
Total Computer Services 29
- ---------------------------------------------------------------------
Computers - 0.9%
Apple* 1,380 182
Dell* 340 9
Hewlett-Packard 2,221 102
International Business Machines 336 37
Research In Motion* 330 71
Sun Microsystems* 410 2
--------------
Total Computers 403
- ---------------------------------------------------------------------
Computers-Memory Devices - 0.2%
EMC* 4,310 80
--------------
Total Computers-Memory Devices 80
- ---------------------------------------------------------------------
Consumer Products-Miscellaneous - 0.0%
Kimberly-Clark 60 4
--------------
Total Consumer Products-Miscellaneous 4
- ---------------------------------------------------------------------
Containers-Metal/Glass - 0.1%
Owens-Illinois* 1,500 60
--------------
Total Containers-Metal/Glass 60
- ---------------------------------------------------------------------
Containers-Paper/Plastic - 0.1%
Sealed Air 1,200 33
--------------
Total Containers-Paper/Plastic 33
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Cosmetics & Toiletries - 0.0%
Procter & Gamble 2 $ -
--------------
Total Cosmetics & Toiletries -
- ---------------------------------------------------------------------
Cruise Lines - 0.1%
Carnival 1,013 45
--------------
Total Cruise Lines 45
- ---------------------------------------------------------------------
Data Processing/Management - 0.0%
Automatic Data Processing 320 14
First Data 18 1
--------------
Total Data Processing/Management 15
- ---------------------------------------------------------------------
Dental Supplies & Equipment - 0.0%
Patterson* 100 4
--------------
Total Dental Supplies & Equipment 4
- ---------------------------------------------------------------------
Diagnostic Equipment - 0.0%
Gen-Probe* 283 18
--------------
Total Diagnostic Equipment 18
- ---------------------------------------------------------------------
Dialysis Centers - 0.0%
DaVita* 40 2
--------------
Total Dialysis Centers 2
- ---------------------------------------------------------------------
Distribution/Wholesale - 0.1%
Fastenal 595 27
--------------
Total Distribution/Wholesale 27
- ---------------------------------------------------------------------
Diversified Manufacturing Operations - 0.6%
3M 525 47
Dover 540 28
General Electric 1,510 58
Honeywell International 891 51
Illinois Tool Works 1,083 60
Tyco International* 495 23
--------------
Total Diversified Manufacturing Operations 267
- ---------------------------------------------------------------------
Drug Delivery Systems - 0.1%
Hospira* 625 24
--------------
Total Drug Delivery Systems 24
- ---------------------------------------------------------------------
E-Commerce/Services - 0.0%
Expedia* 194 5
Liberty Media - Interactive, Cl A* 300 6
--------------
Total E-Commerce/Services 11
- ---------------------------------------------------------------------
Electric Products-Miscellaneous - 0.1%
Emerson Electric 743 35
--------------
Total Electric Products-Miscellaneous 35
- ---------------------------------------------------------------------
8
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Electric-Integrated - 0.7%
Centerpoint Energy 3,200 $ 53
Dominion Resources 445 38
DTE Energy 1,000 46
Duke Energy 1,533 26
Edison International 270 14
Entergy 588 59
PPL 1,204 57
TXU 15 1
--------------
Total Electric-Integrated 294
- ---------------------------------------------------------------------
Electronic Components-Miscellaneous - 0.0%
Flextronics International* 280 3
Tyco Electronics 270 10
--------------
Total Electronic Components-Miscellaneous 13
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - 0.8%
Broadcom, Cl A* 2,960 97
DSP Group* 365 7
International Rectifier* 65 2
Intersil, Cl A 785 23
Microchip Technology 450 16
Micron Technology* 220 3
Nvidia* 4,000 183
QLogic* 275 4
Semtech* 135 2
SiRF Technology Holdings* 170 4
Texas Instruments 175 6
--------------
Total Electronic Components-Semiconductors 347
- ---------------------------------------------------------------------
Electronic Forms - 0.2%
Adobe Systems* 1,980 80
--------------
Total Electronic Forms 80
- ---------------------------------------------------------------------
Electronic Measuring Instruments - 0.1%
Agilent Technologies* 1,200 46
--------------
Total Electronic Measuring Instruments 46
- ---------------------------------------------------------------------
Electronic Parts Distribution - 0.1%
Arrow Electronics* 900 34
--------------
Total Electronic Parts Distribution 34
- ---------------------------------------------------------------------
Electronics-Military - 0.1%
L-3 Communications Holdings 270 26
--------------
Total Electronics-Military 26
- ---------------------------------------------------------------------
Energy-Alternate Sources - 0.1%
Covanta Holding* 1,400 32
--------------
Total Energy-Alternate Sources 32
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Engineering/R&D Services - 0.3%
Fluor 514 $ 60
McDermott International* 800 66
--------------
Total Engineering/R&D Services 126
- ---------------------------------------------------------------------
Engines-Internal Combustion - 0.2%
Cummins 720 85
--------------
Total Engines-Internal Combustion 85
- ---------------------------------------------------------------------
Enterprise Software/Services - 0.4%
BMC Software* 1,900 55
Lawson Software* 175 2
Oracle* 3,360 64
Sybase* 1,700 40
--------------
Total Enterprise Software/Services 161
- ---------------------------------------------------------------------
Entertainment Software - 0.1%
Activision* 1,765 30
Electronic Arts* 175 9
--------------
Total Entertainment Software 39
- ---------------------------------------------------------------------
Fiduciary Banks - 0.2%
Bank of New York Mellon 1,082 46
Northern Trust 800 50
--------------
Total Fiduciary Banks 96
- ---------------------------------------------------------------------
Filtration/Separation Products - 0.1%
Pall 900 37
--------------
Total Filtration/Separation Products 37
- ---------------------------------------------------------------------
Finance-Consumer Loans - 0.1%
SLM 1,066 52
--------------
Total Finance-Consumer Loans 52
- ---------------------------------------------------------------------
Finance-Credit Card - 0.1%
American Express 465 27
--------------
Total Finance-Credit Card 27
- ---------------------------------------------------------------------
Finance-Investment Banker/Broker - 0.4%
Bear Stearns 195 24
Citigroup 1,224 57
Greenhill 60 3
JPMorgan Chase 1,255 55
MF Global* 100 3
Morgan Stanley 410 26
optionsXpress Holdings 275 7
--------------
Total Finance-Investment Banker/Broker 175
- ---------------------------------------------------------------------
Finance-Other Services - 0.1%
Asset Acceptance Capital 405 5
NASDAQ Stock Market* 770 24
--------------
Total Finance-Other Services 29
- ---------------------------------------------------------------------
9
OLD MUTUAL ASSET ALLOCATION
CONSERVATIVE PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Financial Guarantee Insurance - 0.1%
AMBAC Financial Group 200 $ 13
MGIC Investment 330 13
--------------
Total Financial Guarantee Insurance 26
- ---------------------------------------------------------------------
Food-Dairy Products - 0.0%
Dean Foods 700 20
--------------
Total Food-Dairy Products 20
- ---------------------------------------------------------------------
Food-Meat Products - 0.0%
Tyson Foods, Cl A 742 16
--------------
Total Food-Meat Products 16
- ---------------------------------------------------------------------
Food-Miscellaneous/Diversified - 0.2%
Kraft Foods, Cl A 834 27
Sara Lee 3,200 51
--------------
Total Food-Miscellaneous/Diversified 78
- ---------------------------------------------------------------------
Food-Wholesale/Distribution - 0.0%
United Natural Foods* 270 7
--------------
Total Food-Wholesale/Distribution 7
- ---------------------------------------------------------------------
Forestry - 0.1%
Plum Creek Timber 1,000 39
--------------
Total Forestry 39
- ---------------------------------------------------------------------
Gas-Distribution - 0.0%
WGL Holdings 100 3
--------------
Total Gas-Distribution 3
- ---------------------------------------------------------------------
Golf - 0.0%
Callaway Golf 115 2
--------------
Total Golf 2
- ---------------------------------------------------------------------
Hazardous Waste Disposal - 0.1%
Stericycle* 990 47
--------------
Total Hazardous Waste Disposal 47
- ---------------------------------------------------------------------
Health Care Cost Containment - 0.1%
Mckesson 444 26
--------------
Total Health Care Cost Containment 26
- ---------------------------------------------------------------------
Hospital Beds/Equipment - 0.1%
Kinetic Concepts* 700 43
--------------
Total Hospital Beds/Equipment 43
- ---------------------------------------------------------------------
Hotels & Motels - 0.1%
Hilton Hotels 7 -
Marriott International, Cl A 636 27
Wyndham Worldwide* 155 5
--------------
Total Hotels & Motels 32
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Human Resources - 0.3%
Hewitt Associates, Cl A* 1,995 $ 60
Manpower 400 31
Monster Worldwide* 595 23
--------------
Total Human Resources 114
- ---------------------------------------------------------------------
Independent Power Producer - 0.0%
Calpine* 510 2
Mirant* 35 1
Reliant Energy* 120 3
--------------
Total Independent Power Producer 6
- ---------------------------------------------------------------------
Industrial Automation/Robot - 0.1%
Cognex 200 4
Rockwell Automation 400 28
--------------
Total Industrial Automation/Robot 32
- ---------------------------------------------------------------------
Industrial Gases - 0.3%
Air Products & Chemicals 25 2
Praxair 1,730 133
--------------
Total Industrial Gases 135
- ---------------------------------------------------------------------
Instruments-Scientific - 0.1%
PerkinElmer 1,900 53
--------------
Total Instruments-Scientific 53
- ---------------------------------------------------------------------
Insurance Brokers - 0.0%
Marsh & McLennan 620 17
--------------
Total Insurance Brokers 17
- ---------------------------------------------------------------------
Internet Infrastructure Software - 0.1%
Akamai Technologies* 360 12
F5 Networks* 375 33
--------------
Total Internet Infrastructure Software 45
- ---------------------------------------------------------------------
Internet Security - 0.0%
Checkfree* 125 5
Symantec* 800 15
--------------
Total Internet Security 20
- ---------------------------------------------------------------------
Investment Management/Advisory Services - 0.1%
Franklin Resources 370 47
Legg Mason 265 24
--------------
Total Investment Management/Advisory Services 71
- ---------------------------------------------------------------------
Life/Health Insurance - 0.1%
Cigna 1,000 52
--------------
Total Life/Health Insurance 52
- ---------------------------------------------------------------------
Linen Supply & Related Items - 0.0%
Cintas 125 5
--------------
Total Linen Supply & Related Items 5
- ---------------------------------------------------------------------
10
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Machine Tools & Related Products - 0.1%
Kennametal 750 $ 58
--------------
Total Machine Tools & Related Products 58
- ---------------------------------------------------------------------
Machinery-Construction & Mining - 0.2%
Caterpillar 1,010 79
Terex* 300 26
--------------
Total Machinery-Construction & Mining 105
- ---------------------------------------------------------------------
Machinery-General Industry - 0.2%
Manitowoc 450 35
Wabtec 870 36
--------------
Total Machinery-General Industry 71
- ---------------------------------------------------------------------
Machinery-Print Trade - 0.0%
Zebra Technologies, Cl A* 35 1
--------------
Total Machinery-Print Trade 1
- ---------------------------------------------------------------------
Medical Information Systems - 0.2%
Cerner* 1,320 70
IMS Health 205 6
--------------
Total Medical Information Systems 76
- ---------------------------------------------------------------------
Medical Instruments - 0.1%
Medtronic 390 20
St. Jude Medical* 105 4
--------------
Total Medical Instruments 24
- ---------------------------------------------------------------------
Medical Labs & Testing Services - 0.1%
Covance* 230 16
Laboratory Corp of America
Holdings* 450 33
--------------
Total Medical Labs & Testing Services 49
- ---------------------------------------------------------------------
Medical Products - 0.2%
Baxter International 879 46
Covidien* 246 10
Henry Schein* 610 33
--------------
Total Medical Products 89
- ---------------------------------------------------------------------
Medical-Biomedical/Genetic - 0.3%
Celgene* 685 42
Genzyme* 1,130 71
Invitrogen* 65 5
PDL BioPharma* 773 18
--------------
Total Medical-Biomedical/Genetic 136
- ---------------------------------------------------------------------
Medical-Drugs - 0.8%
Angiotech Pharmaceuticals* 795 5
Bristol-Myers Squibb 1,755 50
Cephalon* 780 59
--------------
Pfizer 3,463 81
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical-Drugs - continued
Schering-Plough 3,630 $ 104
Wyeth 1,127 55
--------------
Total Medical-Drugs 354
- ---------------------------------------------------------------------
Medical-HMO - 0.1%
Humana* 42 3
WellPoint* 858 64
--------------
Total Medical-HMO 67
- ---------------------------------------------------------------------
Medical-Hospitals - 0.1%
Universal Health Services, Cl B 700 37
--------------
Total Medical-Hospitals 37
- ---------------------------------------------------------------------
Medical-Outpatient/Home Medical - 0.0%
Lincare Holdings* 230 8
--------------
Total Medical-Outpatient/Home Medical 8
- ---------------------------------------------------------------------
Medical-Wholesale Drug Distributors - 0.1%
AmerisourceBergen 700 33
Cardinal Health 364 24
--------------
Total Medical-Wholesale Drug Distributors 57
- ---------------------------------------------------------------------
Metal Processors & Fabricators - 0.3%
Commercial Metals 1,050 32
Haynes International* 50 5
Precision Castparts 475 65
Sterlite Industries ADR* 1,825 30
--------------
Total Metal Processors & Fabricators 132
- ---------------------------------------------------------------------
Metal-Aluminum - 0.0%
Alcoa 281 11
--------------
Total Metal-Aluminum 11
- ---------------------------------------------------------------------
Metal-Diversified - 0.0%
Hudbay Minerals* 300 8
--------------
Total Metal-Diversified 8
- ---------------------------------------------------------------------
Motion Pictures & Services - 0.0%
Macrovision* 120 3
--------------
Total Motion Pictures & Services 3
- ---------------------------------------------------------------------
Multi-Line Insurance - 0.6%
Allstate 690 37
American International Group 785 51
Cincinnati Financial 1,050 41
Hartford Financial Services Group 689 63
Loews 635 30
XL Capital, Cl A 620 48
--------------
Total Multi-Line Insurance 270
- ---------------------------------------------------------------------
11
OLD MUTUAL ASSET ALLOCATION
CONSERVATIVE PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Multimedia - 0.0%
Walt Disney 33 $ 1
--------------
Total Multimedia 1
- ---------------------------------------------------------------------
Networking Products - 0.4%
Cisco Systems* 4,600 133
Juniper Networks* 830 25
--------------
Total Networking Products 158
- ---------------------------------------------------------------------
Non-Ferrous Metals - 0.1%
Cameco 1,600 65
--------------
Total Non-Ferrous Metals 65
- ---------------------------------------------------------------------
Non-Hazardous Waste Disposal - 0.1%
Allied Waste Industries* 3,760 48
Waste Management 250 10
--------------
Total Non-Hazardous Waste Disposal 58
- ---------------------------------------------------------------------
Office Automation & Equipment - 0.0%
Pitney Bowes 170 8
--------------
Total Office Automation & Equipment 8
- ---------------------------------------------------------------------
Office Supplies & Forms - 0.1%
Avery Dennison 650 40
--------------
Total Office Supplies & Forms 40
- ---------------------------------------------------------------------
Oil & Gas Drilling - 0.1%
Diamond Offshore Drilling 255 26
Patterson-UTI Energy 1,200 27
Pride International* 140 5
Rowan 85 4
--------------
Total Oil & Gas Drilling 62
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - 0.6%
Denbury Resources* 410 16
EnCana 530 32
Murphy Oil 200 12
Newfield Exploration* 800 39
Occidental Petroleum 1,224 70
Southwestern Energy* 2,435 99
Ultra Petroleum* 360 20
--------------
Total Oil Companies-Exploration & Production 288
- ---------------------------------------------------------------------
Oil Companies-Integrated - 0.5%
BP ADR 288 20
Chevron 287 24
ConocoPhillips 912 74
Exxon Mobil 542 46
Hess 650 40
Marathon Oil 378 21
--------------
Total Oil Companies-Integrated 225
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Oil Field Machinery & Equipment - 0.2%
Grant Prideco* 515 $ 29
National Oilwell Varco* 450 54
--------------
Total Oil Field Machinery & Equipment 83
- ---------------------------------------------------------------------
Oil Refining & Marketing - 0.1%
Tesoro 596 30
--------------
Total Oil Refining & Marketing 30
- ---------------------------------------------------------------------
Oil-Field Services - 0.4%
Hanover Compressor* 260 6
Helix Energy Solutions Group* 840 33
Schlumberger 1,280 121
--------------
Total Oil-Field Services 160
- ---------------------------------------------------------------------
Paper & Related Products - 0.1%
Abitibi-Consolidated* 2,325 5
Domtar* 3,275 31
MeadWestvaco 175 6
Smurfit-Stone Container* 335 4
--------------
Total Paper & Related Products 46
- ---------------------------------------------------------------------
Pharmacy Services - 0.1%
Medco Health Solutions* 276 22
Omnicare 175 6
--------------
Total Pharmacy Services 28
- ---------------------------------------------------------------------
Physical Practice Management - 0.1%
Pediatrix Medical Group* 650 35
--------------
Total Physical Practice Management 35
- ---------------------------------------------------------------------
Pipelines - 0.2%
El Paso 1,654 28
Oneok 500 25
Questar 500 26
Spectra Energy 1,227 31
--------------
Total Pipelines 110
- ---------------------------------------------------------------------
Platinum - 0.0%
Stillwater Mining* 270 2
--------------
Total Platinum 2
- ---------------------------------------------------------------------
Printing-Commercial - 0.1%
RR Donnelley & Sons 1,147 49
--------------
Total Printing-Commercial 49
- ---------------------------------------------------------------------
Property/Casualty Insurance - 0.3%
Arch Capital Group* 800 56
Safeco 756 44
Travelers 280 14
WR Berkley 1,450 43
--------------
Total Property/Casualty Insurance 157
- ---------------------------------------------------------------------
12
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Publishing-Books - 0.0%
Scholastic* 30 $ 1
--------------
Total Publishing-Books 1
- ---------------------------------------------------------------------
Publishing-Newspapers - 0.0%
Gannett 402 20
--------------
Total Publishing-Newspapers 20
- ---------------------------------------------------------------------
Quarrying - 0.0%
Vulcan Materials 4 -
--------------
Total Quarrying -
- ---------------------------------------------------------------------
Real Estate Management/Services - 0.1%
CB Richard Ellis Group, Cl A* 1,555 54
--------------
Total Real Estate Management/Services 54
- ---------------------------------------------------------------------
Reinsurance - 0.3%
Allied World Assurance Holdings 95 4
Aspen Insurance Holdings 335 8
Berkshire Hathaway, Cl B* 6 22
Everest Re Group 40 4
Montpelier Re Holdings 435 7
PartnerRe 750 53
RenaissanceRe Holdings 900 52
Validus Holdings* 230 5
--------------
Total Reinsurance 155
- ---------------------------------------------------------------------
REITs-Mortgage - 0.0%
Annaly Capital Management 270 4
CapitalSource 150 3
--------------
Total REITs-Mortgage 7
- ---------------------------------------------------------------------
REITs-Office Property - 0.1%
Boston Properties 250 24
--------------
Total REITs-Office Property 24
- ---------------------------------------------------------------------
Rental Auto/Equipment - 0.0%
Avis Budget Group* 55 1
RSC Holdings* 310 7
--------------
Total Rental Auto/Equipment 8
- ---------------------------------------------------------------------
Retail-Apparel/Shoe - 0.1%
Aeropostale* 630 24
Men's Wearhouse 800 40
--------------
Total Retail-Apparel/Shoe 64
- ---------------------------------------------------------------------
Retail-Building Products - 0.0%
Home Depot 460 17
--------------
Total Retail-Building Products 17
- ---------------------------------------------------------------------
Retail-Computer Equipment - 0.1%
GameStop, Cl A* 1,380 56
--------------
Total Retail-Computer Equipment 56
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Retail-Discount - 0.0%
Wal-Mart Stores 68 $ 3
--------------
Total Retail-Discount 3
- ---------------------------------------------------------------------
Retail-Drug Store - 0.4%
CVS Caremark 2,900 102
Rite Aid* 6,400 36
Walgreen 570 25
--------------
Total Retail-Drug Store 163
- ---------------------------------------------------------------------
Retail-Major Department Store - 0.1%
JC Penney 880 60
Sears Holdings* 3 -
--------------
Total Retail-Major Department Store 60
- ---------------------------------------------------------------------
Retail-Office Supplies - 0.0%
Office Depot* 634 16
--------------
Total Retail-Office Supplies 16
- ---------------------------------------------------------------------
Retail-Pet Food & Supplies - 0.1%
PetSmart 940 30
--------------
Total Retail-Pet Food & Supplies 30
- ---------------------------------------------------------------------
Retail-Regional Department Store - 0.1%
Dillard's, Cl A 1,100 33
Kohl's* 14 1
--------------
Total Retail-Regional Department Store 34
- ---------------------------------------------------------------------
Retail-Restaurants - 0.1%
Cheesecake Factory* 160 4
Starbucks* 1,660 44
--------------
Total Retail-Restaurants 48
- ---------------------------------------------------------------------
Retail-Sporting Goods - 0.0%
Dick's Sporting Goods* 280 16
--------------
Total Retail-Sporting Goods 16
- ---------------------------------------------------------------------
S&L/Thrifts-Western US - 0.2%
Washington Federal 2,390 54
Washington Mutual 451 17
--------------
Total S&L/Thrifts-Western US 71
- ---------------------------------------------------------------------
Schools - 0.1%
ITT Educational Services* 280 30
--------------
Total Schools 30
- ---------------------------------------------------------------------
Semiconductor Components-Integrated Circuits - 0.1%
Cypress Semiconductor* 90 2
Maxim Integrated Products 1,980 63
--------------
Total Semiconductor Components-Integrated
Circuits 65
- ---------------------------------------------------------------------
13
OLD MUTUAL ASSET ALLOCATION
CONSERVATIVE PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Steel-Producers - 0.1%
Nucor 414 $ 21
United States Steel 151 15
--------------
Total Steel-Producers 36
- ---------------------------------------------------------------------
Steel-Specialty - 0.2%
Allegheny Technologies 912 96
--------------
Total Steel-Specialty 96
- ---------------------------------------------------------------------
Super-Regional Banks-US - 0.4%
Bank of America 1,178 56
Capital One Financial 941 66
Wells Fargo 1,094 37
--------------
Total Super-Regional Banks-US 159
- ---------------------------------------------------------------------
Telecommunications Equipment - 0.0%
Plantronics 55 2
--------------
Total Telecommunications Equipment 2
- ---------------------------------------------------------------------
Telecommunications Equipment-Fiber Optics - 0.0%
JDS Uniphase* 265 4
--------------
Total Telecommunications Equipment-Fiber Optics 4
- ---------------------------------------------------------------------
Telecommunications Services - 0.3%
Amdocs* 1,370 50
Embarq 700 43
Time Warner Telecom, Cl A* 1,345 26
--------------
Total Telecommunications Services 119
- ---------------------------------------------------------------------
Telephone-Integrated - 0.4%
AT&T 2,185 86
Level 3 Communications* 985 5
Verizon Communications 1,744 74
--------------
Total Telephone-Integrated 165
- ---------------------------------------------------------------------
Textile-Home Furnishings - 0.1%
Mohawk Industries* 600 54
--------------
Total Textile-Home Furnishings 54
- ---------------------------------------------------------------------
Therapeutics - 0.2%
Gilead Sciences* 2,500 93
ImClone Systems* 125 4
Medicines* 465 7
Warner Chilcott, Cl A* 265 5
--------------
Total Therapeutics 109
- ---------------------------------------------------------------------
Tobacco - 0.4%
Altria Group 1,040 69
Imperial Tobacco Group ADR 846 74
UST 690 37
--------------
Total Tobacco 180
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Shares/Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Tools-Hand Held - 0.1%
Stanley Works 810 $ 45
--------------
Total Tools-Hand Held 45
- ---------------------------------------------------------------------
Transport-Equipment & Leasing - 0.0%
GATX 65 3
--------------
Total Transport-Equipment & Leasing 3
- ---------------------------------------------------------------------
Transport-Marine - 0.1%
Overseas Shipholding Group 400 31
--------------
Total Transport-Marine 31
- ---------------------------------------------------------------------
Transport-Rail - 0.3%
Burlington Northern Santa Fe 483 40
Canadian Pacific Railway 550 40
CSX 803 38
--------------
Total Transport-Rail 118
- ---------------------------------------------------------------------
Transport-Services - 0.1%
FedEx 43 5
Ryder System 22 1
UTi Worldwide 795 20
--------------
Total Transport-Services 26
- ---------------------------------------------------------------------
Veterinary Diagnostics - 0.0%
VCA Antech* 435 17
--------------
Total Veterinary Diagnostics 17
- ---------------------------------------------------------------------
Vitamins & Nutrition Products - 0.1%
Herbalife 705 29
--------------
Total Vitamins & Nutrition Products 29
- ---------------------------------------------------------------------
Web Hosting/Design - 0.1%
Equinix* 370 32
--------------
Total Web Hosting/Design 32
- ---------------------------------------------------------------------
Web Portals/ISP - 0.3%
Google, Cl A* 251 128
--------------
Total Web Portals/ISP 128
- ---------------------------------------------------------------------
Wireless Equipment - 0.7%
American Tower, Cl A* 3,990 166
Nokia ADR 1,474 42
Qualcomm 1,480 62
--------------
Total Wireless Equipment 270
--------------
Total Common Stock (Cost $9,384) 10,861
- ---------------------------------------------------------------------
Corporate Bonds - 18.4%
Abbott Laboratories
5.600%, 05/15/11 $ 130 131
Advanta Capital Trust, Ser B
8.990%, 12/17/26 55 52
- ---------------------------------------------------------------------
14
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Ahern Rentals
9.250%, 08/15/13 $ 125 $ 120
Alcoa
5.900%, 02/01/27 20 19
Allegheny Energy Supply 144A
8.250%, 04/15/12 30 31
American General Finance, Ser G
MTN
5.375%, 09/01/09 50 50
Ameriprise Financial
5.350%, 11/15/10 45 45
Amgen
4.000%, 11/18/09 20 19
AOL Time Warner
6.875%, 05/01/12 75 78
Apache
5.250%, 04/15/13 140 138
Aramark 144A (A)
8.856%, 12/01/15 57 53
AT&T Wireless
8.750%, 03/01/31 45 56
7.875%, 03/01/11 60 65
Bank of America
5.375%, 08/15/11 120 120
5.375%, 06/15/14 20 20
Bank One
5.900%, 11/15/11 60 61
5.250%, 01/30/13 80 79
Belden CDT 144A
7.000%, 03/15/17 56 53
Canadian National Railway
5.800%, 06/01/16 65 65
Canadian National Resources
5.700%, 05/15/17 95 92
Cascades
7.250%, 02/15/13 125 117
Caterpillar Financial Services
5.050%, 12/01/10 75 75
Chesapeake Energy
6.500%, 08/15/17 112 103
ChevronTexaco
3.500%, 09/17/07 120 120
Chubb
4.934%, 11/16/07 60 60
Cisco Systems
5.500%, 02/22/16 35 34
5.250%, 02/22/11 110 109
Citigroup
5.100%, 09/29/11 130 128
Coleman Cable 144A
9.875%, 10/01/12 85 88
Columbus Southern Power, Ser C
5.500%, 03/01/13 40 40
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Comcast
5.900%, 03/15/16 $ 85 $ 83
5.875%, 02/15/18 20 19
5.300%, 01/15/14 25 24
Conocophillips Canada
5.625%, 10/15/16 75 74
Costco Wholesale
5.500%, 03/15/17 35 34
CRH America
6.000%, 09/30/16 15 15
DaimlerChrysler
4.750%, 01/15/08 90 90
Denbury Resources
7.500%, 04/01/13 60 58
Deutsche Telekom
8.000%, 06/15/10 135 144
Dominion Resources, Ser A
5.600%, 11/15/16 20 19
DR Horton
7.875%, 08/15/11 33 34
Echostar DBS
7.125%, 02/01/16 120 113
ERP Operating LP
5.750%, 06/15/17 135 131
5.125%, 03/15/16 45 42
Federal Home Loan Bank
5.250%, 11/03/09 375 375
FedEx
5.500%, 08/15/09 30 30
Ford Motor Credit
7.375%, 10/28/09 120 116
FPL Group Capital
5.625%, 09/01/11 150 151
FTI Consulting
7.750%, 10/01/16 120 118
General Electric Capital, Ser A MTN
4.375%, 03/03/12 50 48
General Electric Capital, Ser G MTN
5.720%, 08/22/11 75 75
General Motors Acceptance
7.000%, 02/01/12 115 108
Hartford Financial Services Group
5.375%, 03/15/17 30 29
Hilton Hotels
7.500%, 12/15/17 120 126
Hospira
6.050%, 03/30/17 20 20
HSBC Finance
6.375%, 10/15/11 110 111
Ikon Office Solutions
7.750%, 09/15/15 90 88
- ---------------------------------------------------------------------
15
OLD MUTUAL ASSET ALLOCATION
CONSERVATIVE PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
International Lease Finance MTN
5.750%, 06/15/11 $ 25 $ 25
5.650%, 06/01/14 125 125
John Deere Capital
5.400%, 10/17/11 30 30
John Deere Capital, Ser D MTN
4.400%, 07/15/09 85 84
Landry's Restaurants, Ser B
7.500%, 12/15/14 120 116
Masco
6.125%, 10/03/16 15 15
Mastec
7.625%, 02/01/17 50 49
Metlife
5.375%, 12/15/12 30 30
5.000%, 06/15/15 95 90
MGM Mirage
6.625%, 07/15/15 35 31
5.875%, 02/27/14 35 31
Midamerican Energy Holdings
5.875%, 10/01/12 125 127
Morgan Stanley
4.000%, 01/15/10 75 73
Neenah Paper
7.375%, 11/15/14 84 79
Neff 144A
10.000%, 06/01/15 40 37
Nextel Communications, Ser E
6.875%, 10/31/13 90 86
Norampac
6.750%, 06/01/13 125 114
Pepsico
5.150%, 05/15/12 35 35
PNC Funding
4.200%, 03/10/08 50 50
Prologis Trust
7.100%, 04/15/08 20 20
Prudential Financial, Ser B MTN
5.100%, 09/20/14 20 19
PSE&G Power
7.750%, 04/15/11 75 80
6.950%, 06/01/12 35 37
PSI Energy
6.050%, 06/15/16 20 20
Quebecor World 144A
9.750%, 01/15/15 100 96
Qwest
8.875%, 03/15/12 25 26
7.500%, 10/01/14 30 29
R.H. Donelley, Ser A-3
8.875%, 01/15/16 57 55
Residential Capital 144A (A)
7.690%, 04/17/09 80 77
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Rogers Cable
6.750%, 03/15/15 $ 20 $ 21
Rogers Communications
8.000%, 12/15/12 67 71
Saint Acquisition 144A
13.310%, 05/15/17 (A) 58 41
12.500%, 05/15/17 8 6
SBC Communications
5.625%, 06/15/16 30 29
5.100%, 09/15/14 95 90
Schering-Plough
6.750%, 12/01/33 30 32
5.550%, 12/01/13 90 90
Shell International
5.625%, 06/27/11 65 66
Simon Property Group
5.750%, 12/01/15 25 25
Southern Power, Ser B
6.250%, 07/15/12 35 36
Stater Brothers Holdings
8.125%, 06/15/12 35 34
Stater Brothers Holdings 144A
7.750%, 04/15/15 60 56
Telecom Italia Capital
4.000%, 11/15/08 135 132
Tesoro 144A
6.500%, 06/01/17 120 113
TFM Sa De Cv
9.375%, 05/01/12 25 26
Time Warner
6.500%, 11/15/36 20 19
Time Warner Cable 144A
5.850%, 05/01/17 35 34
Toys R Us
7.875%, 04/15/13 30 25
True Temper Sports
8.375%, 09/15/11 80 67
Turanalem Finance 144A
8.250%, 01/22/37 60 53
Union Pacific
3.875%, 02/15/09 150 147
Uno Restaurant 144A
10.000%, 02/15/11 28 23
Valassis Communication 144A
8.250%, 03/01/15 100 85
Virginia Electric Power, Ser A
6.000%, 05/15/37 20 19
Wachovia MTN
5.700%, 08/01/13 100 100
Wal-mart Stores
4.550%, 05/01/13 35 33
Washington Mutual Financial
6.875%, 05/15/11 25 26
- ---------------------------------------------------------------------
16
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Weatherford International 144A
6.350%, 06/15/17 $ 200 $ 204
5.950%, 06/15/12 30 30
Weyerhaeuser
5.950%, 11/01/08 10 10
Willis North America
6.200%, 03/28/17 20 20
Wyeth
5.500%, 02/01/14 35 34
Xcel Energy 144A
5.613%, 04/01/17 135 133
Xerox Capital Trust I
8.000%, 02/01/27 85 86
--------------
Total Corporate Bonds (Cost $8,409) 8,198
- ---------------------------------------------------------------------
U.S. Government Agency Obligations - 19.7%
Federal Home Loan Mortgage
Corporation
6.500%, 04/01/35 5 5
6.000%, 08/01/29 21 21
5.894%, 12/01/36 (A) 267 267
5.875%, 03/21/11 40 41
5.875%, 01/01/37 (A) 335 336
5.783%, 03/01/37 (A) 84 84
5.500%, 09/01/17 21 20
5.500%, 09/01/19 32 31
5.500%, 07/01/20 45 44
5.500%, 08/01/20 126 125
5.500%, 09/01/21 226 223
5.500%, 11/01/36 207 200
5.500%, 05/01/37 390 377
5.400%, 03/17/21 150 148
5.265%, 04/01/37 (A) 172 170
5.000%, 10/16/09 130 129
5.000%, 07/01/21 277 269
5.000%, 05/01/22 282 274
Federal Home Loan Mortgage
Corporation - Gold
6.500%, 08/01/37 80 81
6.000%, 07/01/37 70 69
5.500%, 04/01/22 115 113
5.500%, 06/01/22 213 211
5.500%, 12/01/36 242 234
Federal Home Loan Mortgage
Corporation - Gold TBA
6.000%, 08/01/37 890 883
Federal Home Loan Mortgage
Corporation MTN
5.250%, 02/24/11 165 165
Federal National Conventional Loan
6.000%, 02/01/37 269 267
5.500%, 11/01/36 221 213
5.500%, 12/01/36 462 447
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
U.S. Government Agency Obligations - continued
Federal National Mortgage Association
6.500%, 03/01/35 $ 115 $ 117
6.250%, 02/01/11 250 260
6.000%, 01/01/29 68 68
6.000%, 12/15/31 235 239
6.000%, 05/01/33 65 65
6.000%, 07/01/36 140 138
6.000%, 08/01/36 87 86
6.000%, 09/01/36 209 208
6.000%, 10/01/36 4 4
6.000%, 11/01/36 14 14
5.500%, 03/01/20 57 57
5.500%, 04/01/21 73 73
5.500%, 11/01/21 35 35
5.500%, 12/01/35 528 511
5.500%, 01/01/36 58 56
5.500%, 02/01/36 188 182
5.500%, 03/01/36 178 172
5.500%, 04/01/36 118 114
5.500%, 11/01/36 89 86
5.125%, 01/02/14 40 40
5.000%, 05/01/37 124 116
Federal National Mortgage Association
TBA
6.500%, 08/15/37 680 687
--------------
Total U.S. Government Agency
Obligations (Cost $8,812) 8,775
- ---------------------------------------------------------------------
U.S. Treasury Obligations - 16.3%
U.S. Treasury Bonds
7.500%, 11/15/16 50 60
5.375%, 02/15/31 435 459
4.500%, 02/15/36 555 519
U.S. Treasury Notes
4.875%, 08/15/09 35 35
4.875%, 07/31/11 100 101
4.750%, 05/31/12 185 186
4.750%, 05/15/14 605 607
4.625%, 11/15/09 315 315
4.625%, 02/29/12 470 471
4.625%, 02/15/17 505 499
4.500%, 11/30/11 385 384
4.500%, 03/31/12 980 975
4.500%, 05/15/17 1,250 1,223
3.875%, 07/15/10 1,490 1,463
--------------
Total U.S. Treasury Obligations (Cost $7,305) 7,297
- ---------------------------------------------------------------------
17
OLD MUTUAL ASSET ALLOCATION
CONSERVATIVE PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Foreign Common Stock - 7.2%
Australia - 0.4%
BHP Billiton 649 $ 21
Commonwealth Bank of Australia 150 7
CSL 205 15
Leighton Holdings 551 18
QBE Insurance Group 906 23
Sally Malay Mining* 4,615 15
Santos 2,369 26
Tattersall's 6,632 27
Telstra 1,700 7
Woolworths 200 5
--------------
Total Australia 164
- ---------------------------------------------------------------------
Austria - 0.2%
Andritz* 82 5
Telekom Austria 200 5
Voestalpine 1,059 88
--------------
Total Austria 98
- ---------------------------------------------------------------------
Belgium - 0.1%
Dexia 625 18
Fortis 350 14
--------------
Total Belgium 32
- ---------------------------------------------------------------------
Canada - 0.2%
Bank of Nova Scotia 600 28
Canadian Imperial Bank of
Commerce 400 35
EnCana 200 12
Gerdau Ameristeel 300 4
Metro, Cl A 100 3
Petro-Canada 100 5
Teck Cominco, Cl B 600 27
--------------
Total Canada 114
- ---------------------------------------------------------------------
Denmark - 0.0%
Jyske Bank* 100 8
--------------
Total Denmark 8
- ---------------------------------------------------------------------
Finland - 0.1%
Outokumpu 238 7
Rautaruukki 400 26
--------------
Total Finland 33
- ---------------------------------------------------------------------
France - 0.9%
Air France-KLM 1,638 74
BNP Paribas 1,023 112
Bouygues 18 1
Cap Gemini 348 23
CNP Assurances 190 25
France Telecom 100 3
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
France - continued
Societe Generale 290 $ 50
Total 1,258 99
Vivendi 83 3
--------------
Total France 390
- ---------------------------------------------------------------------
Germany - 1.0%
Allianz SE 140 30
Deutsche Bank 14 2
Deutsche Lufthansa 2,986 84
E.ON 822 129
Freenet 62 1
MAN 94 13
Muenchener Rueckversicherungs 85 15
Salzgitter 517 105
ThyssenKrupp 233 13
United Internet 839 15
--------------
Total Germany 407
- ---------------------------------------------------------------------
Greece - 0.0%
Intracom Holdings 200 1
--------------
Total Greece 1
- ---------------------------------------------------------------------
Hong Kong - 0.1%
CLP Holdings 500 3
Vtech Holdings 2,326 21
--------------
Total Hong Kong 24
- ---------------------------------------------------------------------
Italy - 0.3%
Enel 8,434 87
ENI 1,500 53
IFIL - Investments 101 1
Milano Assicurazioni 521 4
--------------
Total Italy 145
- ---------------------------------------------------------------------
Japan - 1.3%
At-group 1,000 17
Bosch 15 -
Brother Industries 3,000 43
Canon 300 16
Cosmo Oil 7,000 40
Cosmos Initia 6,000 32
Fujitsu 2,700 18
Fujitsu Frontech 100 1
JFE Holdings 1,400 96
KDDI 3 20
Land 6 9
Mitani 3,300 39
Nippon Steel 700 5
NTT Data 17 71
Ricoh Leasing 100 2
Santen Pharmaceutical 250 6
Sumco 2,100 108
- ---------------------------------------------------------------------
18
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Japan - continued
Sumitomo Mitsui Financial Group 1 $ 9
Takara Leben 400 4
Tokyo Electron 9 1
Toyota Motor 600 37
Yamazen 1,000 7
--------------
Total Japan 581
- ---------------------------------------------------------------------
Netherlands - 0.6%
Aegon 1,797 33
Boskalis Westminster 306 12
Heineken 1,201 76
ING Groep 480 20
Royal Dutch Shell, Cl A 3,509 136
Royal KPN 1,082 17
--------------
Total Netherlands 294
- ---------------------------------------------------------------------
New Zealand - 0.3%
Air New Zealand 52,426 106
New Zealand Refining 4,754 28
Sky Network Television 210 1
--------------
Total New Zealand 135
- ---------------------------------------------------------------------
Singapore - 0.1%
Hotel Grand Central 21,000 16
Singapore Airlines 4,000 51
--------------
Total Singapore 67
- ---------------------------------------------------------------------
Spain - 0.1%
Banco Bilbao Vizcaya Argentaria 1,130 28
Banco Santander Central Hispano 173 3
Telefonica 312 7
--------------
Total Spain 38
- ---------------------------------------------------------------------
Sweden - 0.3%
JM 2,000 60
Volvo, Cl B 4,019 74
--------------
Total Sweden 134
- ---------------------------------------------------------------------
Switzerland - 0.2%
Bell Holding 12 20
Credit Suisse Group 541 35
UBS 120 7
Zurich Financial Services 80 23
--------------
Total Switzerland 85
- ---------------------------------------------------------------------
United Kingdom - 1.0%
Antofagasta 6,190 90
Ashtead 4,590 13
AstraZeneca 649 34
Aviva 632 9
Barclays 900 13
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Shares/Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
United Kingdom - continued
BHP Billiton 393 $ 12
British Airways* 1,425 11
British American Tobacco 300 10
BT Group 16,917 107
HBOS 280 5
Imperial Tobacco Group 123 5
International Power 2,100 17
Lloyds TSB Group 200 2
Marks & Spencer Group 439 6
NETeller* 209 -
Next 153 6
Rio Tinto 400 29
Royal Bank of Scotland Group 4,945 59
Royal Dutch Shell, Cl B 578 23
Standard Chartered 118 4
Tesco 1,600 14
--------------
Total United Kingdom 469
--------------
Total Foreign Common Stock (Cost $2,473) 3,219
- ---------------------------------------------------------------------
Mortgage Related - 5.7%
Banc of America Mortgage CMO,
Ser 2004-8, Cl 3A1
5.250%, 10/25/19 $ 94 91
Banc of America Mortgage CMO,
Ser 2005-D, Cl 2A4
4.775%, 05/25/35 (A) 275 272
Bear Stearns CMBS, Ser 2004-PWR5,
Cl A4
4.831%, 07/11/42 120 115
Bear Stearns CMBS, Ser 2005-T20,
Cl A2
5.127%, 10/12/42 (A) 150 149
Bear Stearns CMBS, Ser 2006-PW13,
Cl A4
5.540%, 09/11/41 180 176
Bear Stearns CMBS, Ser 2006-T22,
Cl A2
5.466%, 04/12/38 (A) 140 140
Chase Mortgage Finance CMO,
Ser 2006-A1, Cl 2A2
6.083%, 09/25/36 (A) 200 202
Chase Mortgage Finance CMO,
Ser 2006-A1, Cl 4A1
6.053%, 09/25/36 (A) 327 325
Chase Mortgage Finance, Ser 2007-
A1, Cl 12A2 (A)
5.944%, 03/25/37 (A) 225 227
Citigroup CMBS, Ser 2004-C2, Cl A3
4.380%, 10/15/41 170 163
Countrywide, Ser 2003-2, Cl M2
6.970%, 03/26/33 (A) 105 103
JP Morgan Chase CMBS, Ser 2004-
CBX, Cl A4
4.529%, 01/12/37 145 140
- ---------------------------------------------------------------------
19
OLD MUTUAL ASSET ALLOCATION
CONSERVATIVE PORTFOLIO - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Face Amount
Description (000)/Shares Value (000)
- ---------------------------------------------------------------------
Mortgage Related - continued
JP Morgan Chase CMBS, Ser 2005-
LDP1, Cl A2
4.625%, 03/15/46 $ 137 $ 134
Prime Mortgage Trust CMO, Ser
2005-2, Cl 1A3
5.250%, 07/25/20 162 157
Wells Fargo CMO, Ser 2006-11, Cl
A8
6.000%, 09/25/36 152 151
--------------
Total Mortgage Related (Cost $2,567) 2,545
- ---------------------------------------------------------------------
Foreign Bonds - 2.2%
Bundesrepublik, Ser 03 (EUR)
4.750%, 07/04/34 100 142
Bundesrepublik, Ser 02 (EUR)
5.000%, 07/04/12 60 85
Bundesrepublik, Ser 03 (EUR)
3.750%, 07/04/13 24 32
Bundesrepublik, Ser 04 (EUR)
3.750%, 01/04/15 35 46
Bundesrepublik, Ser 05 (EUR)
3.500%, 01/04/16 20 26
Canada (CAD)
5.750%, 06/01/33 20 22
5.250%, 06/01/13 90 87
Citigroup, Ser INTL (JPY)
2.400%, 10/31/25 3,900 31
Development Bank of Japan (JPY)
1.750%, 03/17/17 10,000 83
Netherlands Government (EUR)
4.250%, 07/15/13 66 90
Swedish Goverment, Ser 3105 (SEK)
3.500%, 12/01/15 700 130
United Kingdom Gilt (GBP)
4.000%, 09/07/16 120 223
--------------
Total Foreign Bonds (Cost $960) 997
- ---------------------------------------------------------------------
Investment Company - 0.1%
Index Fund-Midcap - 0.1%
iShares Russell Midcap Value Index
Fund* 200 30
--------------
Total Index Fund-Midcap 30
--------------
Total Investment Company (Cost $26) 30
- ---------------------------------------------------------------------
Foreign Preferred Stock - 0.0%
Germany - 0.0%
Porsche 4 6
--------------
Total Germany 6
--------------
Total Foreign Preferred Stock (Cost $3) 6
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Money Market Fund - 10.5%
Evergreen Select Money Market
Fund, Institutional Class, 5.22%
(C) 4,666,790 $ 4,667
--------------
Total Money Market Fund (Cost $4,667) 4,667
- ---------------------------------------------------------------------
Total Investments - 104.4% (Cost $44,606) 46,595
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net - (4.4%) (1,964)
- ---------------------------------------------------------------------
Total Net Assets - 100.0% $ 44,631
- ---------------------------------------------------------------------
As of July 31, 2007, the Fund had the following forward foreign
currency contracts outstanding:
Unrealized
Settlement Currency Currency Appreciation/
Date to Deliver to Receive (Depreciation)
- ---------- ------------------- ----------------- ----------------
9/12/2007 EUR (63,788) AUD 102,778 $ (49)
9/12/2007 GBP (68,756) AUD 166,963 2,318
9/12/2007 JPY (5,881,110) AUD 59,828 898
9/12/2007 USD (52,073) CAD 55,629 145
9/12/2007 EUR (32,943) DKK 245,535 72
9/12/2007 USD (92,729) DKK 512,969 1,711
9/12/2007 SEK (1,561,687) EUR 166,684 (3,936)
9/12/2007 USD (2,445,917) EUR 1,814,780 40,360
9/12/2007 GBP (158,583) EUR 232,118 (3,902)
9/12/2007 CAD (102,508) EUR 70,168 (90)
9/12/2007 USD (345,043) GBP 174,963 10,114
9/12/2007 EUR (499,182) JPY 81,177,051 5,499
9/12/2007 USD (346,965) JPY 41,673,945 6,946
9/12/2007 USD (69,288) NOK 418,763 2,648
9/12/2007 EUR (43,959) NOK 357,254 1,146
9/12/2007 EUR (149,343) SEK 1,384,801 1,382
9/12/2007 AUD (72,494) USD 59,300 (2,306)
9/12/2007 SEK (455,124) USD 65,286 (1,642)
9/12/2007 EUR (107,884) USD 145,666 (2,137)
-------
$59,177
-------
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
20
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Strategic Asset Allocation Consultant: Ibbotson Associates Advisors, LLC
Performance Highlights
o For the one-year period ended July 31, 2007, the Fund's Class A shares
gained 14.20% at net asset value, while the S&P 1500 Index returned 16.10%
and the Lehman Brothers U.S. Aggregate Index returned 5.56%.
o The Fund's absolute gains were impacted positively by Clay Finlay Inc.'s
emerging markets mandate, Acadian Asset Management, Inc.'s international
equity mandate and Copper Rock Capital Partners, LLC's small-cap growth
strategy.
o Thompson, Siegel & Walmsley LLC's small-cap value mandate and Heitman Real
Estate Securities LLC's REIT mandate detracted from absolute performance
while Dwight Asset Management Company's money market strategy contributed
only marginally to the Fund's overall gains.
o Personal computer and related products designer, manufacturer and marketer
Apple; Latin American cellular communication services provider NII Holdings
and semiconductor manufacturer Nvidia contributed to the Fund's absolute
performance.
o Agricultural commodity and product firm Archer-Daniels-Midland, interactive
licensed betting and gaming provider Sportingbet and U.K.-based electricity
provider British Energy Group (no longer a Fund holding), were among the
Fund's primary detractors.
Q. How did the Fund perform relative to its benchmarks?
A. For the one-year period ended July 31, 2007, the Old Mutual Asset
Allocation Balanced Portfolio's (the "Fund") Class A shares gained 14.20%
at net asset value, while the S&P 1500 Index returned 16.10% and the Lehman
Brothers U.S. Aggregate Index returned 5.56%. Performance for all share
classes can be found on page 23.
Q. What investment environment did the Fund face during the past year?
A. Ibbotson Associates Advisors, LLC ("Ibbotson") analyzes 13 asset classes
for inclusion in the Fund. During the period, returns for all of these
asset classes exceeded Ibbotson's long-term expectations except real estate
and small-cap value. Growth stocks led value stocks; mid-caps outperformed
large- and small-cap stocks; a falling dollar helped international equities
post strong gains; and, while the yield curve remained flat compared to
historical standards, bond returns were relatively typical. Volatility, as
measured by standard deviation for all asset classes, was low compared to
historical standards.
Q. Which market factors influenced the Fund's relative performance?
A. The factors noted above combined to produce a healthy overall investment
environment for the Fund. Strong performance in emerging markets and
international equities impacted the Fund's performance positively during
the period while real estate negatively impacted returns. The exceptionally
high returns in equity real estate investment trusts ("REITs") over the
previous few years and resulting high valuations have been widely
publicized. Ibbotson's long-term target allocation to real estate in the
Fund is 3%, but Ibbotson lowered this allocation to 2% in April 2005. While
that reduction hurt the Fund's relative performance prior to February 2007,
as REITs continued to perform exceptionally well, REITs have given back
some of their gains and the decision is starting to pay off.
Media attention has recently been focused on the conditions of the
sub-prime mortgage market. This is partially attributable to some highly
leveraged hedge funds (some of which belong to prominent Wall Street
firms), which became almost insolvent. The deep pockets of the owners
prevented a market-wide fire sale, but high-yield securities, which started
the year with terrific returns, declined in June and July.
While Ibbotson believes that value stocks are positioned to outperform
growth stocks over the long term, the firm has maintained equal weightings
between growth and value in the Fund since December 2005. The Fund was
positioned relatively well for the outperformance of growth stocks relative
to value stocks given Ibbotson's current position.
Q. How did portfolio composition affect Fund performance?
A. Seventeen fund mandates produced positive returns and two produced negative
returns. During the one-year period, the Fund's absolute gains were
impacted positively by Clay Finlay Inc.'s emerging markets mandate, Acadian
Asset Management, Inc.'s international equity mandate and Copper Rock
Capital Partners, LLC's small-cap growth strategy. Thompson, Siegel &
Walmsley LLC's small-cap value mandate and Heitman Real Estate Securities
LLC's REIT mandate detracted from absolute performance while Dwight Asset
Management Company's money market strategy contributed only marginally to
the Fund's overall gains. At the individual stock level, personal computer
and related products designer, manufacturer and marketer Apple; Latin
American cellular communication services provider NII Holdings and
semiconductor manufacturer Nvidia contributed to the Fund's absolute
performance. On the other hand, agricultural commodity and product firm
Archer-Daniels-Midland, interactive licensed betting and gaming provider
Sportingbet and U.K.-based electricity provider, British Energy Group (no
longer a Fund holding), were among the Fund's primary detractors.
Asset Allocation Balanced Portfolio
21
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Strategic Asset Allocation Consultant: Ibbotson Associates Advisors, LLC
Top Ten Holdings
as of July 31, 2007
U.S. Treasury Note,
3.875%, 07/15/10 1.8%
- ------------------------------------------
U.S. Treasury Note,
4.500%, 05/15/17 1.4%
- ------------------------------------------
Federal Home Loan
Mortgage Corporation,
6.000%, 08/01/37 1.2%
- ------------------------------------------
U.S. Treasury Bond,
4.500%, 03/31/12 1.1%
- ------------------------------------------
U.S. Treasury Note,
4.625%, 11/15/09 1.0%
- ------------------------------------------
U.S. Treasury Note,
4.625%, 02/29/12 0.9%
- ------------------------------------------
Federal National
Mortgage Association TBA,
6.500%, 08/15/37 0.8%
- ------------------------------------------
U.S. Treasury Note,
4.750%, 05/15/14 0.8%
- ------------------------------------------
U.S. Treasury Bond,
4.500%, 02/15/36 0.8%
- ------------------------------------------
Federal Home Loan
Mortgage Corporation,
5.500%, 05/01/37 0.7%
- ------------------------------------------
As a % of Total
Fund Investments 10.5%
- ------------------------------------------
Q. What is the investment outlook?
A. Ibbotson notes that overall the U.S. economy appears to be in good shape
and expects it to continue to grow at a reasonable pace through 2007.
Ibbotson also believes that the U.S. stock market seems fairly priced at
present and that large-cap stocks appear more attractive than small-cap
stocks in the near term, from both a valuation and momentum perspective.
Ibbotson intends to maintain an overweight of U.S. large-cap stocks
relative to U.S. small-cap stocks.
Ibbotson notes that upward pressure on U.S. inflation and U.S. interest
rates will likely be seen over the next two to three years, affecting
intermediate- and long-maturity bond yields. While Ibbotson sees no clear
direction in the near future for long-term yields, it expects the yield
curve to become steeper in the long run. To that end, the strategic asset
allocation consultant will continue an overweight of the short-term end of
the yield curve and an underweight of the intermediate- and long-term ends
of the curve.
Asset Allocation Balanced Portfolio
22
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- -------------------------------------------------------------------------------------------------
1 Year Annualized
Inception Date Return Since Inception
- -------------------------------------------------------------------------------------------------
Class A with front-end load 9/30/04 7.62% 8.55%
Class A without load 9/30/04 14.20% 10.84%
Class C with deferred sales load 9/30/04 12.38% 10.09%
Class C without deferred sales load 9/30/04 13.38% 10.09%
Class Z 12/09/05 14.55% 10.97%
Institutional Class 9/30/04 14.64% 11.16%
S&P 1500 Index 9/30/04 16.10% 12.27%
Lehman Brothers U.S. Aggregate Index 9/30/04 5.56% 3.37%
- -------------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative indexes can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
1.82% and 1.55%; 2.54% and 2.30%; 1.54% and 1.30%; 1.47% and 1.30%,
respectively. Expenses for Class Z shares are based on estimated amounts.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
9/30/04 7/31/05 7/31/06 7/31/07
Asset Allocation Balanced Portfolio, Institutional Class $10,000 $11,114 $11,771 $13,495
Asset Allocation Balanced Portfolio, Class A $9,425 $10,447 $11,049 $12,618
Asset Allocation Balanced Portfolio, Class C $10,000 $11,033 $11,584 $13,134
S&P 1500 Index $10,000 $11,359 $11,954 $13,879
Lehman Brothers US Aggregate Bond Index $10,000 $10,256 $10,405 $10,984
Past performance is not a guarantee of future results. The graph above compares
an investment made in the Fund's Class A, C and Institutional shares on the
inception date of 9/30/04 to an investment made in unmanaged securities indexes
on that date. The performance of the Fund's Class A shares shown in the line
graph takes into account the maximum initial sales charge. The Fund's
performance in this chart and the performance table assumes reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Common Stock 44.7%
Foreign Common Stock 13.7%
Corporate Bonds 9.0%
U.S. Treasury Obligations 10.2%
U.S. Government Agency Obligations 10.9%
Cash Equivalent 7.4%
Mortgage Related 2.7%
Foreign Bonds 1.0%
Investment Companies 0.0%
Warrants 0.4%
100.0%
23
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 46.0%
Advanced Materials/Products - 0.0%
Hexcel* 3,350 $ 73
--------------
Total Advanced Materials/Products 73
- ---------------------------------------------------------------------
Advertising Sales - 0.0%
Focus Media Holding ADR* 1,600 66
--------------
Total Advertising Sales 66
- ---------------------------------------------------------------------
Advertising Services - 0.0%
inVentiv Health* 1,500 53
--------------
Total Advertising Services 53
- ---------------------------------------------------------------------
Aerospace/Defense - 1.1%
Aerovironment* 1,970 39
Boeing 8,326 861
General Dynamics 5,475 430
Rockwell Collins 6,920 476
Teledyne Technologies* 1,110 49
--------------
Total Aerospace/Defense 1,855
- ---------------------------------------------------------------------
Aerospace/Defense-Equipment - 0.3%
Alliant Techsystems* 2,400 238
B/E Aerospace* 5,020 203
DRS Technologies 1,111 58
Goodrich 695 44
--------------
Total Aerospace/Defense-Equipment 543
- ---------------------------------------------------------------------
Agricultural Chemicals - 0.5%
Agrium 3,700 155
CF Industries Holdings 750 43
Monsanto 10,255 661
--------------
Total Agricultural Chemicals 859
- ---------------------------------------------------------------------
Agricultural Operations - 0.2%
Archer-Daniels-Midland 6,411 215
Tejon Ranch* 1,205 48
--------------
Total Agricultural Operations 263
- ---------------------------------------------------------------------
Airlines - 0.1%
AMR* 4,400 109
Delta Air Lines* 1,190 21
UAL* 1,120 49
US Airways Group* 840 26
--------------
Total Airlines 205
- ---------------------------------------------------------------------
Apparel Manufacturers - 0.0%
Carter's* 1,800 38
Gymboree* 141 6
--------------
Total Apparel Manufacturers 44
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Appliances - 0.0%
Whirlpool 561 $ 57
--------------
Total Appliances 57
- ---------------------------------------------------------------------
Applications Software - 0.4%
Citrix Systems* 1,510 54
Intuit* 1,665 48
Microsoft 15,820 459
Nuance Communications* 1,480 24
Red Hat* 3,040 63
Visual Sciences* 1,389 24
--------------
Total Applications Software 672
- ---------------------------------------------------------------------
Auction House/Art Dealer - 0.0%
Sotheby's 975 42
--------------
Total Auction House/Art Dealer 42
- ---------------------------------------------------------------------
Audio/Video Products - 0.0%
DTS* 700 15
--------------
Total Audio/Video Products 15
- ---------------------------------------------------------------------
Auto-Cars/Light Trucks - 0.2%
Ford Motor 21,853 186
General Motors 4,124 134
--------------
Total Auto-Cars/Light Trucks 320
- ---------------------------------------------------------------------
Auto/Truck Parts & Equipment-Original - 0.0%
Amerigon* 1,174 19
--------------
Total Auto/Truck Parts & Equipment-Original 19
- ---------------------------------------------------------------------
Batteries/Battery Systems - 0.0%
EnerSys* 1,100 20
--------------
Total Batteries/Battery Systems 20
- ---------------------------------------------------------------------
Beverages-Non-Alcoholic - 0.1%
Coca-Cola 3,070 160
Coca-Cola Bottling 780 41
--------------
Total Beverages-Non-Alcoholic 201
- ---------------------------------------------------------------------
Brewery - 0.2%
Cia Cervecerias Unidas ADR 2,000 74
Molson Coors Brewing, Cl B 2,800 249
--------------
Total Brewery 323
- ---------------------------------------------------------------------
Broadcast Services/Programming - 0.0%
Clear Channel Communications 103 4
--------------
Total Broadcast Services/Programming 4
- ---------------------------------------------------------------------
Building & Construction-Miscellaneous - 0.0%
Orascom Construction Industries GDR 530 75
--------------
Total Building & Construction-Miscellaneous 75
- ---------------------------------------------------------------------
24
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Building Products-Air & Heating - 0.0%
AAON 1,550 $ 46
--------------
Total Building Products-Air & Heating 46
- ---------------------------------------------------------------------
Building Products-Cement/Aggregate - 0.1%
Martin Marietta Materials 980 134
--------------
Total Building Products-Cement/Aggregate 134
- ---------------------------------------------------------------------
Building Products-Light Fixtures - 0.1%
Genlyte Group* 1,800 125
--------------
Total Building Products-Light Fixtures 125
- ---------------------------------------------------------------------
Building-Heavy Construction - 0.1%
Washington Group International* 1,500 120
--------------
Total Building-Heavy Construction 120
- ---------------------------------------------------------------------
Building-Mobile Home/Manufactured Housing - 0.0%
Williams Scotsman International* 380 10
--------------
Total Building-Mobile Home/Manufactured Housing 10
- ---------------------------------------------------------------------
Cable TV - 0.2%
Comcast, Cl A* 8,170 214
DIRECTV Group* 4,222 94
--------------
Total Cable TV 308
- ---------------------------------------------------------------------
Casino Hotels - 0.3%
Harrah's Entertainment 27 2
MGM Mirage* 6,725 492
--------------
Total Casino Hotels 494
- ---------------------------------------------------------------------
Casino Services - 0.1%
International Game Technology 2,550 90
--------------
Total Casino Services 90
- ---------------------------------------------------------------------
Cellular Telecommunications - 1.1%
Alltel 87 6
America Movil, Ser L ADR 1,500 90
MetroPCS Communications* 13,915 509
NII Holdings* 13,865 1,165
Tim Participacoes ADR 2,100 73
Turkcell Iletisim ADR 3,614 64
--------------
Total Cellular Telecommunications 1,907
- ---------------------------------------------------------------------
Chemicals-Diversified - 0.3%
Celanese, Ser A 3,500 131
E.I. du Pont de Nemours 6,900 323
Lyondell Chemical 1,070 48
Olin 905 19
--------------
Total Chemicals-Diversified 521
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Chemicals-Specialty - 0.2%
Hercules* 3,866 $ 80
Lubrizol 3,400 213
Terra Industries* 3,600 89
--------------
Total Chemicals-Specialty 382
- ---------------------------------------------------------------------
Coal - 0.2%
Alpha Natural Resources* 1,540 28
Arch Coal 1,270 38
Consol Energy 3,000 125
Massey Energy 1,700 36
Peabody Energy 2,930 124
--------------
Total Coal 351
- ---------------------------------------------------------------------
Commercial Banks Non-US - 0.1%
Banco Itau Holding Financeira ADR 3,100 142
Kazkommertsbank GDR* 1,600 29
--------------
Total Commercial Banks Non-US 171
- ---------------------------------------------------------------------
Commercial Banks-Central US - 0.2%
Bank Mutual 3,850 40
First Busey 1,450 28
First Midwest Bancorp 700 23
Heartland Financial USA 1,050 18
Irwin Financial 4,140 49
MB Financial 2,050 65
Oak Hill Financial 350 10
Old Second Bancorp 1,250 35
--------------
Total Commercial Banks-Central US 268
- ---------------------------------------------------------------------
Commercial Banks-Eastern US - 0.0%
Independent Bank 1,100 30
--------------
Total Commercial Banks-Eastern US 30
- ---------------------------------------------------------------------
Commercial Banks-Southern US - 0.1%
Colonial BancGroup 9,800 214
--------------
Total Commercial Banks-Southern US 214
- ---------------------------------------------------------------------
Commercial Banks-Western US - 0.1%
AmericanWest Bancorp 1,450 22
Centennial Bank Holdings* 6,750 44
Community Bancorp* 178 4
Glacier Bancorp 1,400 27
ITLA Capital 900 38
Silver State Bancorp* 1,600 30
Sterling Financial 1,250 29
SVB Financial Group* 610 32
--------------
Total Commercial Banks-Western US 226
- ---------------------------------------------------------------------
25
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Commercial Services - 0.2%
Alliance Data Systems* 605 $ 46
Arbitron 920 46
ChoicePoint* 1,330 52
eTelecare Global Solutions ADR* 4,200 64
ExlService Holdings* 1,586 27
PHH* 1,720 50
Steiner Leisure* 1,100 46
--------------
Total Commercial Services 331
- ---------------------------------------------------------------------
Commercial Services-Finance - 0.0%
Wright Express* 1,975 67
--------------
Total Commercial Services-Finance 67
- ---------------------------------------------------------------------
Communications Software - 0.1%
Avid Technology* 2,660 85
DivX* 1,810 25
--------------
Total Communications Software 110
- ---------------------------------------------------------------------
Computer Aided Design - 0.0%
Parametric Technology* 2,400 42
--------------
Total Computer Aided Design 42
- ---------------------------------------------------------------------
Computer Services - 0.1%
Cognizant Tech Solutions, Cl A* 1,460 118
Electronic Data Systems 1,100 30
Perot Systems, Cl A* 1,960 30
Syntel 685 24
--------------
Total Computer Services 202
- ---------------------------------------------------------------------
Computer Software - 0.0%
Double-Take Software* 2,290 35
Omniture* 1,600 36
--------------
Total Computer Software 71
- ---------------------------------------------------------------------
Computers - 1.6%
Apple* 7,710 1,016
Dell* 2,860 80
Hewlett-Packard 16,125 742
International Business Machines 3,571 395
Research In Motion* 2,225 476
Sun Microsystems* 3,115 16
--------------
Total Computers 2,725
- ---------------------------------------------------------------------
Computers-Integrated Systems - 0.0%
NCI, Cl A* 2,470 39
Radisys* 1,900 22
Riverbed Technology* 365 16
--------------
Total Computers-Integrated Systems 77
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Computers-Memory Devices - 0.3%
EMC* 27,075 $ 501
Xyratex* 1,700 38
--------------
Total Computers-Memory Devices 539
- ---------------------------------------------------------------------
Computers-Peripheral Equipment - 0.0%
Electronics for Imaging* 2,210 58
--------------
Total Computers-Peripheral Equipment 58
- ---------------------------------------------------------------------
Consulting Services - 0.1%
Advisory Board* 770 40
FTI Consulting* 2,585 106
Huron Consulting Group* 435 30
LECG* 2,320 32
MAXIMUS 1,230 51
--------------
Total Consulting Services 259
- ---------------------------------------------------------------------
Consumer Products-Miscellaneous - 0.0%
Kimberly-Clark 626 42
--------------
Total Consumer Products-Miscellaneous 42
- ---------------------------------------------------------------------
Containers-Metal/Glass - 0.2%
Owens-Illinois* 7,100 284
--------------
Total Containers-Metal/Glass 284
- ---------------------------------------------------------------------
Containers-Paper/Plastic - 0.1%
Pactiv* 125 4
Sealed Air 6,500 177
--------------
Total Containers-Paper/Plastic 181
- ---------------------------------------------------------------------
Cruise Lines - 0.1%
Carnival 5,635 250
--------------
Total Cruise Lines 250
- ---------------------------------------------------------------------
Data Processing/Management - 0.1%
Acxiom 1,670 42
Automatic Data Processing 2,650 123
Commvault Systems* 2,065 35
Fair Isaac 250 10
First Data 234 7
--------------
Total Data Processing/Management 217
- ---------------------------------------------------------------------
Dental Supplies & Equipment - 0.0%
Patterson* 740 27
Sirona Dental Systems* 1,200 42
--------------
Total Dental Supplies & Equipment 69
- ---------------------------------------------------------------------
Diagnostic Equipment - 0.1%
Gen-Probe* 1,480 93
--------------
Total Diagnostic Equipment 93
- ---------------------------------------------------------------------
26
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Diagnostic Kits - 0.0%
Inverness Medical Innovations* 1,450 $ 70
--------------
Total Diagnostic Kits 70
- ---------------------------------------------------------------------
Dialysis Centers - 0.0%
DaVita* 325 17
Dialysis Corp of America* 3,880 39
--------------
Total Dialysis Centers 56
- ---------------------------------------------------------------------
Direct Marketing - 0.0%
Valuevision Media, Cl A* 3,310 30
--------------
Total Direct Marketing 30
- ---------------------------------------------------------------------
Distribution/Wholesale - 0.1%
Bell Microproducts* 940 6
Fastenal 2,690 121
Owens & Minor 1,350 52
--------------
Total Distribution/Wholesale 179
- ---------------------------------------------------------------------
Diversified Manufacturing Operations - 1.1%
3M 3,590 319
Dover 4,555 232
General Electric 13,300 516
Honeywell International 4,939 284
Illinois Tool Works 6,016 331
Tyco International 5,308 251
--------------
Total Diversified Manufacturing Operations 1,933
- ---------------------------------------------------------------------
Diversified Minerals - 0.1%
Cia Vale do Rio Doce ADR 2,740 134
Oglebay Norton* 2,500 75
--------------
Total Diversified Minerals 209
- ---------------------------------------------------------------------
Diversified Operations - 0.0%
Resource America, Cl A 1,150 17
Walter Industries 1,150 29
--------------
Total Diversified Operations 46
- ---------------------------------------------------------------------
Drug Delivery Systems - 0.1%
Hospira* 2,800 108
--------------
Total Drug Delivery Systems 108
- ---------------------------------------------------------------------
E-Commerce/Products - 0.1%
Blue Nile* 390 30
Submarino GDR 144A 900 71
--------------
Total E-Commerce/Products 101
- ---------------------------------------------------------------------
E-Commerce/Services - 0.1%
Expedia* 1,423 38
Liberty Media - Interactive, Cl A* 2,250 47
Priceline.com* 460 29
--------------
Total E-Commerce/Services 114
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
E-Services/Consulting - 0.1%
GSI Commerce* 2,635 $ 59
Perficient* 2,877 57
--------------
Total E-Services/Consulting 116
- ---------------------------------------------------------------------
Educational Software - 0.0%
Blackboard* 875 39
SkillSoft ADR* 4,300 36
--------------
Total Educational Software 75
- ---------------------------------------------------------------------
Electric Products-Miscellaneous - 0.1%
Emerson Electric 4,124 194
--------------
Total Electric Products-Miscellaneous 194
- ---------------------------------------------------------------------
Electric-Integrated - 1.0%
Centerpoint Energy 16,400 270
CMS Energy 211 3
Dominion Resources 2,450 206
DTE Energy 5,800 269
Duke Energy 8,484 144
Edison International 2,980 158
Entergy 3,218 322
Otter Tail 1,600 47
Pike Electric* 2,000 40
PPL 6,400 302
TXU 165 11
--------------
Total Electric-Integrated 1,772
- ---------------------------------------------------------------------
Electronic Components-Miscellaneous - 0.2%
AU Optronics ADR 3,200 54
Celestica* 9,820 58
Flextronics International* 2,095 23
Hon Hai Precision GDR 144A 6,015 100
Tyco Electronics* 3,002 108
--------------
Total Electronic Components-Miscellaneous 343
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - 1.4%
Broadcom, Cl A* 16,205 532
DSP Group* 7,560 135
Ikanos Communications* 5,590 40
International Rectifier* 535 20
Intersil, Cl A 3,490 102
Microchip Technology 1,930 70
Micron Technology* 1,600 19
Microsemi* 2,250 53
Netlogic Microsystems* 1,265 39
NVIDIA* 21,565 987
QLogic* 2,140 28
Samsung Electronics GDR 144A 490 161
- ---------------------------------------------------------------------
27
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - continued
Semtech* 1,085 $ 18
Silicon Laboratories* 690 24
SiRF Technology Holdings* 2,530 59
Texas Instruments 2,677 94
Volterra Semiconductor* 1,225 14
Zoran* 1,350 25
--------------
Total Electronic Components-Semiconductors 2,420
- ---------------------------------------------------------------------
Electronic Design Automation - 0.1%
Comtech Group* 2,665 38
Magma Design Automation* 1,750 26
Synplicity* 8,370 58
--------------
Total Electronic Design Automation 122
- ---------------------------------------------------------------------
Electronic Forms - 0.3%
Adobe Systems* 11,035 445
--------------
Total Electronic Forms 445
- ---------------------------------------------------------------------
Electronic Measuring Instruments - 0.2%
Agilent Technologies* 6,100 233
Itron* 700 55
--------------
Total Electronic Measuring Instruments 288
- ---------------------------------------------------------------------
Electronic Parts Distribution - 0.1%
Arrow Electronics* 4,400 168
--------------
Total Electronic Parts Distribution 168
- ---------------------------------------------------------------------
Electronic Security Devices - 0.0%
Taser International* 1,520 23
--------------
Total Electronic Security Devices 23
- ---------------------------------------------------------------------
Electronics-Military - 0.1%
EDO 1,530 51
L-3 Communications Holdings 1,450 141
--------------
Total Electronics-Military 192
- ---------------------------------------------------------------------
Energy-Alternate Sources - 0.1%
Covanta Holding* 7,500 170
Evergreen Solar* 2,100 18
--------------
Total Energy-Alternate Sources 188
- ---------------------------------------------------------------------
Engineering/R&D Services - 0.4%
Fluor 2,294 265
McDermott International* 4,500 373
Shaw Group* 1,350 72
--------------
Total Engineering/R&D Services 710
- ---------------------------------------------------------------------
Engines-Internal Combustion - 0.3%
Cummins 3,750 445
--------------
Total Engines-Internal Combustion 445
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Enterprise Software/Services - 0.6%
BMC Software* 6,900 $ 198
Concur Technologies* 1,036 25
Informatica* 1,700 24
Lawson Software* 5,300 51
Open Text* 2,000 38
Oracle* 18,750 358
PROS Holdings* 2,010 25
Sybase* 8,900 211
Taleo, Cl A* 809 17
Ultimate Software Group* 1,285 35
--------------
Total Enterprise Software/Services 982
- ---------------------------------------------------------------------
Entertainment Software - 0.1%
Activision* 7,570 129
Electronic Arts* 1,370 67
THQ* 1,380 40
--------------
Total Entertainment Software 236
- ---------------------------------------------------------------------
Environmental Consulting & Engineering - 0.0%
Tetra Tech* 2,500 53
--------------
Total Environmental Consulting & Engineering 53
- ---------------------------------------------------------------------
Fiduciary Banks - 0.3%
Bank of New York Mellon 6,098 260
Northern Trust 4,100 256
--------------
Total Fiduciary Banks 516
- ---------------------------------------------------------------------
Filtration/Separation Products - 0.2%
Clarcor 2,250 78
Pall 4,500 187
--------------
Total Filtration/Separation Products 265
- ---------------------------------------------------------------------
Finance-Consumer Loans - 0.2%
Encore Capital Group* 3,020 31
First Marblehead 1,220 40
Nelnet, Cl A 2,020 35
SLM 5,953 293
--------------
Total Finance-Consumer Loans 399
- ---------------------------------------------------------------------
Finance-Credit Card - 0.1%
American Express 2,600 152
Discover Financial Services* 1,962 45
--------------
Total Finance-Credit Card 197
- ---------------------------------------------------------------------
Finance-Investment Banker/Broker - 0.8%
Bear Stearns 1,100 133
Citigroup 6,738 314
Cowen* 2,070 30
Greenhill 505 29
JPMorgan Chase 10,521 463
KBW* 100 3
- ---------------------------------------------------------------------
28
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Finance-Investment Banker/Broker - continued
MF Global Limited* 770 $ 19
Morgan Stanley 5,005 320
optionsXpress Holdings 2,040 51
--------------
Total Finance-Investment Banker/Broker 1,362
- ---------------------------------------------------------------------
Finance-Other Services - 0.1%
Asset Acceptance Capital 7,840 109
GFI Group* 410 31
NASDAQ Stock Market* 3,450 106
--------------
Total Finance-Other Services 246
- ---------------------------------------------------------------------
Financial Guarantee Insurance - 0.1%
AMBAC Financial Group 910 61
MGIC Investment 1,839 71
--------------
Total Financial Guarantee Insurance 132
- ---------------------------------------------------------------------
Food-Dairy Products - 0.1%
Dean Foods 3,900 112
Wimm-Bill-Dann Foods ADR 900 85
--------------
Total Food-Dairy Products 197
- ---------------------------------------------------------------------
Food-Meat Products - 0.1%
Tyson Foods, Cl A 8,796 187
--------------
Total Food-Meat Products 187
- ---------------------------------------------------------------------
Food-Miscellaneous/Diversified - 0.3%
Kraft Foods, Cl A 4,628 151
Sara Lee 16,400 260
SunOpta* 2,100 24
--------------
Total Food-Miscellaneous/Diversified 435
- ---------------------------------------------------------------------
Food-Retail - 0.1%
Great Atlantic & Pacific Tea 1,700 49
X5 Retail Group GDR* 2,150 67
--------------
Total Food-Retail 116
- ---------------------------------------------------------------------
Food-Wholesale/Distribution - 0.0%
United Natural Foods* 2,040 56
--------------
Total Food-Wholesale/Distribution 56
- ---------------------------------------------------------------------
Footwear & Related Apparel - 0.0%
Heelys* 1,180 26
Skechers U.S.A., Cl A* 960 20
--------------
Total Footwear & Related Apparel 46
- ---------------------------------------------------------------------
Forestry - 0.1%
Plum Creek Timber 4,900 190
--------------
Total Forestry 190
- ---------------------------------------------------------------------
Gambling (Non-Hotel) - 0.0%
Pinnacle Entertainment* 2,828 75
--------------
Total Gambling (Non-Hotel) 75
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Gas-Distribution - 0.0%
WGL Holdings 790 $ 24
--------------
Total Gas-Distribution 24
- ---------------------------------------------------------------------
Golf - 0.0%
Callaway Golf 905 15
--------------
Total Golf 15
- ---------------------------------------------------------------------
Hazardous Waste Disposal - 0.1%
Stericycle* 3,520 169
--------------
Total Hazardous Waste Disposal 169
- ---------------------------------------------------------------------
Health Care Cost Containment - 0.2%
Hooper Holmes* 2,330 6
Mckesson 4,781 276
--------------
Total Health Care Cost Containment 282
- ---------------------------------------------------------------------
Hospital Beds/Equipment - 0.1%
Kinetic Concepts* 3,600 221
--------------
Total Hospital Beds/Equipment 221
- ---------------------------------------------------------------------
Hotels & Motels - 0.1%
Hilton Hotels 380 17
Lodgian* 2,000 25
Marriott International, Cl A 3,186 132
Wyndham Worldwide* 1,175 40
--------------
Total Hotels & Motels 214
- ---------------------------------------------------------------------
Human Resources - 0.4%
Hewitt Associates, Cl A* 10,815 324
Hudson Highland Group* 1,830 30
Kenexa* 699 25
Manpower 2,300 182
Monster Worldwide* 2,920 113
--------------
Total Human Resources 674
- ---------------------------------------------------------------------
Import/Export - 0.0%
Castle Brands* 1,710 8
--------------
Total Import/Export 8
- ---------------------------------------------------------------------
Independent Power Producer - 0.0%
Calpine* 3,940 11
Mirant* 290 11
Reliant Energy* 920 23
--------------
Total Independent Power Producer 45
- ---------------------------------------------------------------------
Industrial Audio & Video Products - 0.0%
SRS Labs* 2,254 26
--------------
Total Industrial Audio & Video Products 26
- ---------------------------------------------------------------------
Industrial Automation/Robot - 0.1%
Cognex 1,500 32
Intermec* 2,500 64
- ---------------------------------------------------------------------
29
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Industrial Automation/Robot - continued
Rockwell Automation 2,000 $ 140
--------------
Total Industrial Automation/Robot 236
- ---------------------------------------------------------------------
Industrial Gases - 0.4%
Air Products & Chemicals 225 20
Praxair 9,675 741
--------------
Total Industrial Gases 761
- ---------------------------------------------------------------------
Instruments-Controls - 0.0%
Watts Water Technologies, Cl A 1,350 47
--------------
Total Instruments-Controls 47
- ---------------------------------------------------------------------
Instruments-Scientific - 0.2%
PerkinElmer 9,900 276
--------------
Total Instruments-Scientific 276
- ---------------------------------------------------------------------
Insurance Brokers - 0.1%
Marsh & McLennan 5,490 151
--------------
Total Insurance Brokers 151
- ---------------------------------------------------------------------
Internet Application Software - 0.1%
Cryptologic 920 20
DealerTrack Holdings* 2,301 83
Interwoven* 1,900 26
Vocus* 646 18
--------------
Total Internet Application Software 147
- ---------------------------------------------------------------------
Internet Financial Services - 0.0%
Authorize.net Holdings* 2,385 41
Online Resources* 3,440 38
--------------
Total Internet Financial Services 79
- ---------------------------------------------------------------------
Internet Infrastructure Software - 0.2%
Akamai Technologies* 1,540 52
F5 Networks* 1,680 145
Opsware* 3,461 49
Radvision Limited* 800 14
--------------
Total Internet Infrastructure Software 260
- ---------------------------------------------------------------------
Internet Security - 0.1%
Checkfree* 945 35
Ipass* 1,390 7
Symantec* 6,740 129
--------------
Total Internet Security 171
- ---------------------------------------------------------------------
Investment Management/Advisory Services - 0.3%
Affiliated Managers Group* 750 85
Franklin Resources 2,075 264
Legg Mason 1,180 106
--------------
Total Investment Management/Advisory Services 455
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Lasers-Systems/Components - 0.0%
Electro Scientific Industries* 2,370 $ 52
Newport* 2,400 31
--------------
Total Lasers-Systems/Components 83
- ---------------------------------------------------------------------
Life/Health Insurance - 0.2%
Cigna 5,300 274
--------------
Total Life/Health Insurance 274
- ---------------------------------------------------------------------
Linen Supply & Related Items - 0.0%
Cintas 950 35
--------------
Total Linen Supply & Related Items 35
- ---------------------------------------------------------------------
Machine Tools & Related Products - 0.2%
Kennametal 4,100 314
--------------
Total Machine Tools & Related Products 314
- ---------------------------------------------------------------------
Machinery-Construction & Mining - 0.4%
Bucyrus International, Cl A 600 38
Caterpillar 5,625 443
Terex* 2,000 173
--------------
Total Machinery-Construction & Mining 654
- ---------------------------------------------------------------------
Machinery-Electrical - 0.1%
Baldor Electric 800 37
Franklin Electric 1,250 58
--------------
Total Machinery-Electrical 95
- ---------------------------------------------------------------------
Machinery-General Industry - 0.2%
Manitowoc 1,910 148
Wabtec 3,720 152
--------------
Total Machinery-General Industry 300
- ---------------------------------------------------------------------
Machinery-Print Trade - 0.0%
Zebra Technologies, Cl A* 260 9
--------------
Total Machinery-Print Trade 9
- ---------------------------------------------------------------------
Medical Imaging Systems - 0.0%
IRIS International* 1,167 19
--------------
Total Medical Imaging Systems 19
- ---------------------------------------------------------------------
Medical Information Systems - 0.2%
Cerner* 7,350 389
IMS Health 1,495 42
--------------
Total Medical Information Systems 431
- ---------------------------------------------------------------------
Medical Instruments - 0.3%
Abaxis* 1,139 21
Cambridge Heart* 2,660 10
Conceptus* 3,081 50
Medtronic 3,410 173
Micrus Endovascular* 1,122 26
- ---------------------------------------------------------------------
30
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical Instruments - continued
Natus Medical* 4,400 $ 67
St. Jude Medical* 780 34
Symmetry Medical* 4,100 61
--------------
Total Medical Instruments 442
- ---------------------------------------------------------------------
Medical Labs & Testing Services - 0.1%
Covance* 1,080 76
Laboratory Corp of America Holdings* 2,300 170
--------------
Total Medical Labs & Testing Services 246
- ---------------------------------------------------------------------
Medical Products - 0.4%
Baxter International 4,732 249
Covidien* 3,001 123
Henry Schein* 2,740 149
Orthofix International* 820 35
PSS World Medical* 3,150 54
Syneron Medical* 1,040 25
Vital Signs 550 28
--------------
Total Medical Products 663
- ---------------------------------------------------------------------
Medical-Biomedical/Genetic - 0.5%
Cambrex 1,530 21
Celgene* 3,050 185
Genzyme* 6,490 409
Integra LifeSciences Holdings* 1,050 52
Invitrogen* 525 38
Keryx Biopharmaceuticals* 2,700 23
Lifecell* 1,630 50
Martek Biosciences* 1,760 45
Orchid Cellmark* 1,630 8
PDL BioPharma* 3,780 89
--------------
Total Medical-Biomedical/Genetic 920
- ---------------------------------------------------------------------
Medical-Drugs - 1.4%
Angiotech Pharmaceuticals* 17,945 124
Aspreva Pharmaceuticals* 1,740 30
Axcan Pharma* 2,930 54
Bristol-Myers Squibb 9,719 276
Cephalon* 4,450 334
Indevus Pharmaceuticals* 3,370 24
Medicis Pharmaceutical, Cl A 670 19
Pfizer 22,961 540
Santarus* 5,173 25
Schering-Plough 20,250 578
Valeant Pharmaceuticals International 2,710 42
Wyeth 7,088 344
--------------
Total Medical-Drugs 2,390
- ---------------------------------------------------------------------
Medical-Generic Drugs - 0.0%
Perrigo 1,890 35
--------------
Total Medical-Generic Drugs 35
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical-HMO - 0.2%
Humana* 479 $ 31
WellPoint* 4,746 356
--------------
Total Medical-HMO 387
- ---------------------------------------------------------------------
Medical-Hospitals - 0.1%
Universal Health Services, Cl B 3,600 189
--------------
Total Medical-Hospitals 189
- ---------------------------------------------------------------------
Medical-Nursing Homes - 0.0%
Assisted Living Concepts, Cl A* 3,700 33
Skilled Healthcare Group, Cl A* 1,480 21
--------------
Total Medical-Nursing Homes 54
- ---------------------------------------------------------------------
Medical-Outpatient/Home Medical - 0.1%
Lincare Holdings* 1,820 65
Radiation Therapy Services* 2,713 77
--------------
Total Medical-Outpatient/Home Medical 142
- ---------------------------------------------------------------------
Medical-Wholesale Drug Distributors - 0.3%
AmerisourceBergen 3,800 179
Cardinal Health 4,370 287
--------------
Total Medical-Wholesale Drug Distributors 466
- ---------------------------------------------------------------------
Metal Processors & Fabricators - 0.5%
CIRCOR International 1,200 48
Commercial Metals 5,200 160
Haynes International* 1,305 117
Ladish* 2,467 120
Precision Castparts 1,840 252
Sterlite Industries ADR* 15,565 253
--------------
Total Metal Processors & Fabricators 950
- ---------------------------------------------------------------------
Metal Products-Distributors - 0.0%
AM Castle 2,200 73
--------------
Total Metal Products-Distributors 73
- ---------------------------------------------------------------------
Metal-Aluminum - 0.0%
Alcoa 1,540 59
--------------
Total Metal-Aluminum 59
- ---------------------------------------------------------------------
Metal-Copper - 0.0%
Taseko Mines* 9,000 43
--------------
Total Metal-Copper 43
- ---------------------------------------------------------------------
Miscellaneous Manufacturing - 0.0%
Trimas* 4,200 49
--------------
Total Miscellaneous Manufacturing 49
- ---------------------------------------------------------------------
Motion Pictures & Services - 0.0%
Macrovision* 895 21
--------------
Total Motion Pictures & Services 21
- ---------------------------------------------------------------------
31
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Multi-Line Insurance - 1.1%
Allstate 3,921 $ 208
American International Group 4,300 276
Cincinnati Financial 5,600 220
Hartford Financial Services Group 5,567 511
Loews 6,184 293
XL Capital, Cl A 4,246 331
--------------
Total Multi-Line Insurance 1,839
- ---------------------------------------------------------------------
Multimedia - 0.1%
Entravision Communications, Cl A* 1,670 16
Gemstar-TV Guide International* 5,550 32
Walt Disney 4,076 134
--------------
Total Multimedia 182
- ---------------------------------------------------------------------
Networking Products - 0.6%
Anixter International* 650 54
Atheros Communications* 860 24
Cisco Systems* 28,495 824
Foundry Networks* 700 12
Juniper Networks* 4,290 129
Switch & Data Facilities* 2,169 34
--------------
Total Networking Products 1,077
- ---------------------------------------------------------------------
Non-Ferrous Metals - 0.2%
Cameco 8,930 364
--------------
Total Non-Ferrous Metals 364
- ---------------------------------------------------------------------
Non-Hazardous Waste Disposal - 0.2%
Allied Waste Industries* 16,320 210
Waste Management 2,920 111
--------------
Total Non-Hazardous Waste Disposal 321
- ---------------------------------------------------------------------
Office Automation & Equipment - 0.0%
Pitney Bowes 1,830 84
--------------
Total Office Automation & Equipment 84
- ---------------------------------------------------------------------
Office Supplies & Forms - 0.1%
Avery Dennison 3,800 233
--------------
Total Office Supplies & Forms 233
- ---------------------------------------------------------------------
Oil & Gas Drilling - 0.2%
Atlas America 1,425 69
Diamond Offshore Drilling 1,150 119
Patterson-UTI Energy 5,560 127
Pride International* 1,060 37
Rowan 620 26
--------------
Total Oil & Gas Drilling 378
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - 1.2%
Arena Resources* 570 31
ATP Oil & Gas* 855 39
Cabot Oil & Gas 1,400 48
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - continued
Denbury Resources* 2,250 $ 90
EnCana 2,925 178
Forest Oil* 1,250 51
Gazprom ADR 1,400 60
Goodrich Petroleum* 1,200 36
Harvest Natural Resources* 4,990 56
Murphy Oil 1,100 68
Newfield Exploration* 4,100 197
NovaTek GDR 2,000 107
Occidental Petroleum 6,772 384
Parallel Petroleum* 1,370 28
PetroHawk Energy* 3,200 48
Southwestern Energy* 12,950 526
Stone Energy* 1,525 50
Ultra Petroleum* 1,570 87
--------------
Total Oil Companies-Exploration & Production 2,084
- ---------------------------------------------------------------------
Oil Companies-Integrated - 1.1%
BP ADR 1,536 107
Chevron 2,608 222
ConocoPhillips 4,989 403
Exxon Mobil 5,338 454
Hess 3,000 184
LUKOIL ADR 900 73
Marathon Oil 4,026 222
Petroleo Brasileiro ADR 3,280 213
--------------
Total Oil Companies-Integrated 1,878
- ---------------------------------------------------------------------
Oil Field Machinery & Equipment - 0.3%
Dresser-Rand Group* 1,370 51
Grant Prideco* 2,100 118
National Oilwell Varco* 2,225 267
T-3 Energy Services* 1,030 36
--------------
Total Oil Field Machinery & Equipment 472
- ---------------------------------------------------------------------
Oil Refining & Marketing - 0.1%
Tesoro 3,000 149
--------------
Total Oil Refining & Marketing 149
- ---------------------------------------------------------------------
Oil-Field Services - 0.8%
Hanover Compressor* 1,965 47
Helix Energy Solutions Group* 4,435 173
Hercules Offshore* 1,450 44
Key Energy Services* 3,220 49
North American Energy Partners* 2,300 40
Oceaneering International* 1,000 56
Schlumberger 7,200 682
Superior Energy Services* 1,650 66
Tetra Technologies* 1,600 44
- ---------------------------------------------------------------------
32
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Oil-Field Services - continued
W-H Energy Services* 1,845 $ 118
Willbros Group* 1,100 35
--------------
Total Oil-Field Services 1,354
- ---------------------------------------------------------------------
Paper & Related Products - 0.2%
Abitibi-Consolidated* 47,620 113
Bowater 1,840 36
Domtar* 16,725 159
MeadWestvaco 1,360 44
Neenah Paper 870 34
Smurfit-Stone Container* 2,570 30
--------------
Total Paper & Related Products 416
- ---------------------------------------------------------------------
Pharmacy Services - 0.2%
Medco Health Solutions* 2,951 240
Omnicare 1,360 45
--------------
Total Pharmacy Services 285
- ---------------------------------------------------------------------
Physical Practice Management - 0.1%
Pediatrix Medical Group* 3,300 178
--------------
Total Physical Practice Management 178
- ---------------------------------------------------------------------
Physical Therapy/Rehabilitation Centers - 0.0%
Psychiatric Solutions* 2,215 75
--------------
Total Physical Therapy/Rehabilitation Centers 75
- ---------------------------------------------------------------------
Pipelines - 0.4%
El Paso 13,930 232
Oneok 2,600 132
Questar 2,600 134
Spectra Energy 6,592 168
--------------
Total Pipelines 666
- ---------------------------------------------------------------------
Platinum - 0.0%
Stillwater Mining* 2,060 19
--------------
Total Platinum 19
- ---------------------------------------------------------------------
Power Conversion/Supply Equipment - 0.0%
Delta Electronics GDR 2,397 47
--------------
Total Power Conversion/Supply Equipment 47
- ---------------------------------------------------------------------
Printing-Commercial - 0.2%
RR Donnelley & Sons 6,933 293
--------------
Total Printing-Commercial 293
- ---------------------------------------------------------------------
Private Corrections - 0.1%
Geo Group* 2,900 80
--------------
Total Private Corrections 80
- ---------------------------------------------------------------------
Property/Casualty Insurance - 0.5%
Arch Capital Group* 3,800 265
Safeco 4,150 243
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Property/Casualty Insurance - continued
Travelers 2,350 $ 119
WR Berkley 6,800 200
--------------
Total Property/Casualty Insurance 827
- ---------------------------------------------------------------------
Publishing-Books - 0.0%
Courier 1,150 43
Scholastic* 200 7
--------------
Total Publishing-Books 50
- ---------------------------------------------------------------------
Publishing-Newspapers - 0.1%
Gannett 2,229 111
--------------
Total Publishing-Newspapers 111
- ---------------------------------------------------------------------
Publishing-Periodicals - 0.0%
Playboy Enterprises, Cl B* 4,390 48
--------------
Total Publishing-Periodicals 48
- ---------------------------------------------------------------------
Quarrying - 0.0%
Vulcan Materials 51 5
--------------
Total Quarrying 5
- ---------------------------------------------------------------------
Radio - 0.0%
Radio One, Cl D* 6,115 37
XM Satellite Radio Holdings, Cl A* 2,150 25
--------------
Total Radio 62
- ---------------------------------------------------------------------
Real Estate Management/Services - 0.2%
CB Richard Ellis Group, Cl A* 8,257 288
--------------
Total Real Estate Management/Services 288
- ---------------------------------------------------------------------
Real Estate Operation/Development - 0.0%
Brookfield Properties 3,145 71
--------------
Total Real Estate Operation/Development 71
- ---------------------------------------------------------------------
Recreational Centers - 0.0%
Town Sports* 1,900 32
--------------
Total Recreational Centers 32
- ---------------------------------------------------------------------
Reinsurance - 0.7%
Allied World Assurance Holdings 695 33
Aspen Insurance Holdings 4,600 113
Berkshire Hathaway, Cl B* 53 191
Endurance Specialty Holdings 890 33
Everest Re Group 335 33
Montpelier Re Holdings 6,325 100
PartnerRe 3,950 281
Platinum Underwriters Holdings 1,480 49
RenaissanceRe Holdings 4,700 270
Validus Holdings* 3,390 76
--------------
Total Reinsurance 1,179
- ---------------------------------------------------------------------
33
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
REITs-Apartments - 0.3%
Archstone-Smith Trust 2,087 $ 120
AvalonBay Communities 1,199 129
BRE Properties 1,018 51
Camden Property Trust 968 53
Equity Residential 2,386 95
GMH Communities Trust 2,486 21
UDR 1,928 45
--------------
Total REITs-Apartments 514
- ---------------------------------------------------------------------
REITs-Diversified - 0.2%
Colonial Properties Trust 1,513 53
Digital Realty Trust 1,328 44
PS Business Parks 353 18
Vornado Realty Trust 1,786 191
--------------
Total REITs-Diversified 306
- ---------------------------------------------------------------------
REITs-Hotels - 0.2%
Ashford Hospitality Trust 2,140 22
DiamondRock Hospitality 2,101 35
Host Hotels & Resorts 6,260 132
LaSalle Hotel Properties 1,722 69
Strategic Hotels & Resorts 640 14
--------------
Total REITs-Hotels 272
- ---------------------------------------------------------------------
REITs-Manufactured Homes - 0.0%
Equity Lifestyle Properties 628 28
--------------
Total REITs-Manufactured Homes 28
- ---------------------------------------------------------------------
REITs-Mortgage - 0.0%
Annaly Capital Management 2,070 30
CapitalSource 1,140 21
MFA Mortgage Investments 3,380 24
--------------
Total REITs-Mortgage 75
- ---------------------------------------------------------------------
REITs-Office Property - 0.3%
Alexandria Real Estate Equities 160 14
American Financial Realty Trust 3,480 30
BioMed Realty Trust 2,008 44
Boston Properties 2,687 254
Corporate Office Properties 1,809 68
Kilroy Realty 398 26
SL Green Realty 792 96
--------------
Total REITs-Office Property 532
- ---------------------------------------------------------------------
REITs-Regional Malls - 0.3%
General Growth Properties 2,310 111
Simon Property Group 3,024 262
Taubman Centers 1,591 76
--------------
Total REITs-Regional Malls 449
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
REITs-Shopping Centers - 0.2%
Acadia Realty Trust 799 $ 19
Developers Diversified Realty 332 16
Federal Realty Investment Trust 815 61
Kimco Realty 2,358 88
Kite Realty Group Trust 1,523 24
Regency Centers 1,340 87
Tanger Factory Outlet Centers 743 25
--------------
Total REITs-Shopping Centers 320
- ---------------------------------------------------------------------
REITs-Storage - 0.1%
Public Storage 1,769 124
--------------
Total REITs-Storage 124
- ---------------------------------------------------------------------
REITs-Warehouse/Industrial - 0.1%
AMB Property 1,572 84
Prologis 2,359 134
--------------
Total REITs-Warehouse/Industrial 218
- ---------------------------------------------------------------------
Rental Auto/Equipment - 0.1%
Avis Budget Group* 420 11
H&E Equipment Services* 3,380 92
RSC Holdings* 2,380 50
--------------
Total Rental Auto/Equipment 153
- ---------------------------------------------------------------------
Retail-Apparel/Shoe - 0.4%
Abercrombie & Fitch, Cl A 3,775 264
Aeropostale* 2,820 107
AnnTaylor Stores* 1,300 41
Childrens Place Retail Stores* 1,000 34
Footstar 3,550 16
Kenneth Cole Productions, Cl A 1,790 38
Men's Wearhouse 4,100 203
Syms 2,430 36
--------------
Total Retail-Apparel/Shoe 739
- ---------------------------------------------------------------------
Retail-Automobile - 0.0%
Group 1 Automotive 1,320 50
--------------
Total Retail-Automobile 50
- ---------------------------------------------------------------------
Retail-Building Products - 0.1%
Home Depot 2,600 97
--------------
Total Retail-Building Products 97
- ---------------------------------------------------------------------
Retail-Computer Equipment - 0.2%
GameStop, Cl A* 6,480 261
--------------
Total Retail-Computer Equipment 261
- ---------------------------------------------------------------------
Retail-Discount - 0.0%
Citi Trends* 858 28
Wal-Mart Stores 653 30
--------------
Total Retail-Discount 58
- ---------------------------------------------------------------------
34
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Retail-Drug Store - 0.6%
CVS Caremark 17,015 $ 599
Rite Aid* 32,900 181
Walgreen 4,930 218
--------------
Total Retail-Drug Store 998
- ---------------------------------------------------------------------
Retail-Jewelry - 0.0%
Movado Group 1,400 40
--------------
Total Retail-Jewelry 40
- ---------------------------------------------------------------------
Retail-Major Department Store - 0.2%
JC Penney 4,870 331
--------------
Total Retail-Major Department Store 331
- ---------------------------------------------------------------------
Retail-Office Supplies - 0.1%
Office Depot* 4,634 116
--------------
Total Retail-Office Supplies 116
- ---------------------------------------------------------------------
Retail-Pet Food & Supplies - 0.1%
PetSmart 4,280 138
--------------
Total Retail-Pet Food & Supplies 138
- ---------------------------------------------------------------------
Retail-Propane Distribution - 0.1%
Star Gas Partners LP* 23,980 96
--------------
Total Retail-Propane Distribution 96
- ---------------------------------------------------------------------
Retail-Regional Department Store - 0.1%
Dillard's, Cl A 6,000 179
--------------
Total Retail-Regional Department Store 179
- ---------------------------------------------------------------------
Retail-Restaurants - 0.2%
BJ's Restaurants* 750 15
Cheesecake Factory* 1,240 31
Starbucks* 10,050 268
--------------
Total Retail-Restaurants 314
- ---------------------------------------------------------------------
Retail-Sporting Goods - 0.1%
Dick's Sporting Goods* 1,280 72
Zumiez* 748 28
--------------
Total Retail-Sporting Goods 100
- ---------------------------------------------------------------------
Retail-Video Rental - 0.0%
Blockbuster, Cl A* 2,735 12
--------------
Total Retail-Video Rental 12
- ---------------------------------------------------------------------
Retirement/Aged Care - 0.0%
Emeritus* 900 22
--------------
Total Retirement/Aged Care 22
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
S&L/Thrifts-Central US - 0.0%
Citizens First Bancorp 1,000 $ 19
Franklin Bank* 1,600 17
--------------
Total S&L/Thrifts-Central US 36
- ---------------------------------------------------------------------
S&L/Thrifts-Eastern US - 0.2%
Brookline Bancorp 5,400 56
Clifton Savings Bancorp 3,300 33
Dime Community Bancshares 3,250 36
Flushing Financial 2,650 40
Investors Bancorp* 3,350 40
KNBT Bancorp 2,200 29
NewAlliance Bancshares 2,900 39
Provident New York Bancorp 4,100 56
--------------
Total S&L/Thrifts-Eastern US 329
- ---------------------------------------------------------------------
S&L/Thrifts-Southern US - 0.0%
BankUnited Financial, Cl A 1,650 28
--------------
Total S&L/Thrifts-Southern US 28
- ---------------------------------------------------------------------
S&L/Thrifts-Western US - 0.2%
PFF Bancorp 1,600 27
Provident Financial Holdings 1,550 30
Washington Federal 12,040 271
Washington Mutual 2,488 93
--------------
Total S&L/Thrifts-Western US 421
- ---------------------------------------------------------------------
Schools - 0.2%
Capella Education* 1,040 46
ITT Educational Services* 1,160 123
Learning Tree International* 4,110 55
Strayer Education 425 64
--------------
Total Schools 288
- ---------------------------------------------------------------------
Semiconductor Components-Integrated Circuits - 0.5%
Cirrus Logic* 4,400 32
Cypress Semiconductor* 2,960 74
Integrated Device Technology* 2,750 45
Maxim Integrated Products 17,285 548
Powertech Technology GDR 10,000 94
--------------
Total Semiconductor Components-Integrated
Circuits 793
- ---------------------------------------------------------------------
Semiconductor Equipment - 0.1%
Brooks Automation* 1,700 30
Cabot Microelectronics* 480 21
Tessera Technologies* 1,240 51
Ultratech* 2,500 31
--------------
Total Semiconductor Equipment 133
- ---------------------------------------------------------------------
35
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Specified Purpose Acquisition - 0.0%
Marathon Acquisition* 2,070 $ 20
--------------
Total Specified Purpose Acquisition 20
- ---------------------------------------------------------------------
Steel Pipe & Tube - 0.1%
Mueller Water Products, Cl A 1,220 17
TMK GDR 144A 1,700 68
--------------
Total Steel Pipe & Tube 85
- ---------------------------------------------------------------------
Steel-Producers - 0.2%
Nucor 1,700 85
Olympic Steel 550 15
United States Steel 1,964 193
--------------
Total Steel-Producers 293
- ---------------------------------------------------------------------
Steel-Specialty - 0.3%
Allegheny Technologies 4,880 512
--------------
Total Steel-Specialty 512
- ---------------------------------------------------------------------
Super-Regional Banks-US - 0.6%
Bank of America 6,939 329
Capital One Financial 6,849 485
Wells Fargo 5,978 202
--------------
Total Super-Regional Banks-US 1,016
- ---------------------------------------------------------------------
Telecommunications Equipment - 0.1%
CommScope* 463 25
Comtech Telecommunications* 1,100 48
OpNext* 1,643 20
Plantronics 2,425 68
Tollgrade Communications* 3,180 33
--------------
Total Telecommunications Equipment 194
- ---------------------------------------------------------------------
Telecommunications Equipment-Fiber Optics - 0.0%
JDS Uniphase* 1,995 29
--------------
Total Telecommunications Equipment-Fiber Optics 29
- ---------------------------------------------------------------------
Telecommunications Services - 0.5%
Amdocs* 7,000 253
Cbeyond* 557 20
Embarq 3,600 222
MasTec* 3,640 50
Orbcomm* 3,053 47
RCN* 2,640 47
Time Warner Telecom, Cl A* 8,840 173
--------------
Total Telecommunications Services 812
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Telephone-Integrated - 0.7%
AT&T 16,418 $ 643
General Communication Cl A* 3,300 38
IDT, Cl B 3,490 35
Level 3 Communications* 7,600 40
Verizon Communications 9,646 411
--------------
Total Telephone-Integrated 1,167
- ---------------------------------------------------------------------
Television - 0.0%
Sinclair Broadcast Group, Cl A 1,765 23
--------------
Total Television 23
- ---------------------------------------------------------------------
Textile-Home Furnishings - 0.1%
Mohawk Industries* 2,200 198
--------------
Total Textile-Home Furnishings 198
- ---------------------------------------------------------------------
Therapeutics - 0.4%
Gilead Sciences* 14,120 526
ImClone Systems* 960 32
Medicines* 3,580 57
Theravance* 1,240 33
Warner Chilcott, Cl A* 2,005 36
--------------
Total Therapeutics 684
- ---------------------------------------------------------------------
Tobacco - 0.6%
Altria Group 6,658 442
Imperial Tobacco Group ADR 4,641 407
UST 3,784 203
--------------
Total Tobacco 1,052
- ---------------------------------------------------------------------
Tools-Hand Held - 0.1%
Stanley Works 4,440 246
--------------
Total Tools-Hand Held 246
- ---------------------------------------------------------------------
Transactional Software - 0.0%
Innerworkings* 3,063 41
VeriFone Holdings* 950 34
--------------
Total Transactional Software 75
- ---------------------------------------------------------------------
Transport-Air Freight - 0.0%
ABX Air* 3,020 22
--------------
Total Transport-Air Freight 22
- ---------------------------------------------------------------------
Transport-Equipment & Leasing - 0.1%
GATX 990 45
Genesis Lease ADR 2,160 56
Greenbrier 400 13
--------------
Total Transport-Equipment & Leasing 114
- ---------------------------------------------------------------------
Transport-Marine - 0.1%
Overseas Shipholding Group 2,100 163
--------------
Total Transport-Marine 163
- ---------------------------------------------------------------------
36
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Transport-Rail - 0.4%
Burlington Northern Santa Fe 2,648 $ 218
Canadian Pacific Railway 3,100 229
CSX 4,000 190
Union Pacific 12 1
--------------
Total Transport-Rail 638
- ---------------------------------------------------------------------
Transport-Services - 0.1%
FedEx 498 55
Ryder System 157 9
UTi Worldwide 3,260 82
--------------
Total Transport-Services 146
- ---------------------------------------------------------------------
Transport-Truck - 0.0%
Forward Air 1,000 34
Heartland Express 2,400 36
--------------
Total Transport-Truck 70
- ---------------------------------------------------------------------
Veterinary Diagnostics - 0.0%
VCA Antech* 1,930 76
--------------
Total Veterinary Diagnostics 76
- ---------------------------------------------------------------------
Vitamins & Nutrition Products - 0.1%
Herbalife 4,265 175
--------------
Total Vitamins & Nutrition Products 175
- ---------------------------------------------------------------------
Water - 0.0%
Consolidated Water 1,600 46
--------------
Total Water 46
- ---------------------------------------------------------------------
Web Hosting/Design - 0.1%
Equinix* 2,110 183
--------------
Total Web Hosting/Design 183
- ---------------------------------------------------------------------
Web Portals/ISP - 0.5%
Gigamedia* 1,801 19
Google, Cl A* 1,639 836
Trizetto Group* 2,600 42
--------------
Total Web Portals/ISP 897
- ---------------------------------------------------------------------
Wireless Equipment - 0.9%
American Tower, Cl A* 20,440 852
Nokia ADR 8,113 232
Novatel Wireless* 1,943 42
Qualcomm 8,260 344
RF Micro Devices* 5,500 38
--------------
Total Wireless Equipment 1,508
- ---------------------------------------------------------------------
Wound, Burn & Skin Care - 0.0%
Obagi Medical Products* 831 15
--------------
Total Wound, Burn & Skin Care 15
--------------
Total Common Stock (Cost $72,223) 80,540
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Foreign Common Stock - 14.1%
Australia - 1.0%
BHP Billiton 5,919 $ 188
Caltex Australia 5,990 126
Leighton Holdings 3,815 126
MacArthur Coal 900 5
Minara Resources 3,448 18
Qantas Airways 91,470 443
Sally Malay Mining* 2,902 9
Santos 31,697 355
Tattersall's 52,097 216
Zinifex 14,995 248
--------------
Total Australia 1,734
- ---------------------------------------------------------------------
Austria - 0.1%
Voestalpine 1,697 141
--------------
Total Austria 141
- ---------------------------------------------------------------------
Belgium - 0.3%
Belgacom 200 8
Delhaize Group 1,213 113
Fortis 10,455 412
--------------
Total Belgium 533
- ---------------------------------------------------------------------
Bermuda - 0.0%
Catlin Group 1,606 15
--------------
Total Bermuda 15
- ---------------------------------------------------------------------
Brazil - 0.2%
Banco do Brasil 4,500 71
Gafisa 5,200 83
Kroton Educacional* 2,650 60
Localiza Rent A Car 5,100 52
Porto Seguro 1,700 65
--------------
Total Brazil 331
- ---------------------------------------------------------------------
Canada - 0.1%
Canadian Imperial Bank of Commerce 1,300 113
Gerdau Ameristeel 500 7
Methanex 2,100 52
Teck Cominco, Cl B 1,200 53
TELUS 300 16
--------------
Total Canada 241
- ---------------------------------------------------------------------
China - 0.1%
Industrial & Commercial Bank of
China, Cl H 130,000 79
--------------
Total China 79
- ---------------------------------------------------------------------
37
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Denmark - 0.1%
Norden 1,511 $ 126
Sydbank 550 28
Topdanmark* 275 47
--------------
Total Denmark 201
- ---------------------------------------------------------------------
Finland - 0.1%
Outokumpu 1,467 46
Rautaruukki 800 52
--------------
Total Finland 98
- ---------------------------------------------------------------------
France - 0.9%
Air France-KLM 7,497 337
BNP Paribas 6,685 735
CNP Assurances 312 41
Lafarge 70 12
Societe Generale 2,435 418
Vivendi 2,232 95
--------------
Total France 1,638
- ---------------------------------------------------------------------
Germany - 1.6%
Allianz SE 1,043 222
Balda* 129 1
Commerzbank 230 10
Deutsche Bank 4,283 580
Deutsche Lufthansa 2,286 64
E.ON 2,046 322
Epcos 1,056 21
Kloeckner 2,256 168
Koenig & Bauer 1,376 51
MAN 2,738 396
Norddeutsche Affinerie 1,129 49
Salzgitter 2,066 420
ThyssenKrupp 7,831 433
Volkswagen 147 26
--------------
Total Germany 2,763
- ---------------------------------------------------------------------
Hong Kong - 0.2%
ASM Pacific Technology 1,948 18
China Everbright International 156,000 61
China Mobile 7,000 80
China Resources Enterprise 24,000 95
CNOOC 50,000 59
Kingdee International Software Group 66,000 65
Orient Overseas International 2,200 26
Regal Hotels International Holdings 308,000 25
Television Broadcasts 6,000 41
Vtech Holdings 2,326 21
--------------
Total Hong Kong 491
- ---------------------------------------------------------------------
Indonesia - 0.2%
Astra International 32,000 64
Bank Niaga 576,000 57
Bank Rakyat Indonesia 114,000 76
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Indonesia - continued
Ciputra Development* 627,000 $ 61
Ramayana Lestari Sentosa 582,000 61
--------------
Total Indonesia 319
- ---------------------------------------------------------------------
Italy - 0.7%
Enel 57,414 593
ENI 18,562 649
Fondiaria-Sai 978 47
--------------
Total Italy 1,289
- ---------------------------------------------------------------------
Japan - 2.4%
ABILIT 900 4
Arcs 4,700 70
Bosch 34 -
Brother Industries 7,000 101
Canon 4,100 217
Central Japan Railway 25 259
Century Leasing System 900 12
Cosmo Oil 26,000 148
Cosmos Initia 4,000 22
Daiichikosho 2,700 29
IBJ Leasing 300 6
JFE Shoji Holdings 5,000 37
Kobayashi Pharmaceutical 700 24
Kohnan Shoji 900 12
Kyoei Steel 800 22
Leopalace21 3,400 108
Marubeni 82,000 786
Matsushita Electric Works 7,000 88
Mori Seiki 1,200 39
Nippon Mining Holdings 11,500 116
Nippon Oil 20,000 178
Nippon Steel Trading 4,000 13
Nissan Shatai 3,000 19
Nisshin Oillio Group 1,000 5
NTT Data 34 142
Pacific Management 5 8
Pacific Metals 3,000 52
Seiko Holdings 5,000 45
Shinsho 3,000 11
Sumco 6,600 339
Sumitomo 26,300 509
Sumitomo Metal Mining 26,000 631
Tokyo Electron 18 1
Tokyo Tekko 3,000 16
Toyota Boshoku 2,200 57
UMC Japan* 91 13
Yamato Kogyo 2,300 109
Yamazen 2,000 14
--------------
Total Japan 4,262
- ---------------------------------------------------------------------
38
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Luxembourg - 0.1%
Millicom International Cellular* 1,240 $ 100
--------------
Total Luxembourg 100
- ---------------------------------------------------------------------
Malaysia - 0.1%
Genting 23,200 53
SP Setia 28,000 69
WCT Engineering 37,333 71
--------------
Total Malaysia 193
- ---------------------------------------------------------------------
Mexico - 0.0%
GEO SA de CV, Ser B* 12,900 71
--------------
Total Mexico 71
- ---------------------------------------------------------------------
Netherlands - 1.1%
Heineken 5,599 355
Hunter Douglas 481 47
ING Groep 16,481 695
OCE 1,171 27
Royal Dutch Shell, Cl A 21,936 852
Royal KPN 1,216 19
--------------
Total Netherlands 1,995
- ---------------------------------------------------------------------
New Zealand - 0.2%
Air New Zealand 170,375 344
Fletcher Building 8,377 80
--------------
Total New Zealand 424
- ---------------------------------------------------------------------
Norway - 0.1%
Norsk Hydro 5,800 223
--------------
Total Norway 223
- ---------------------------------------------------------------------
Philippines - 0.1%
Ayala 9,120 106
Jollibee Foods 16,000 17
Union Bank of Philippines 61,900 82
Universal Robina 108,000 38
--------------
Total Philippines 243
- ---------------------------------------------------------------------
Russia - 0.2%
Pharmstandard* 1,200 73
Sberbank 40,000 160
Unified Energy System* 58,000 79
--------------
Total Russia 312
- ---------------------------------------------------------------------
Singapore - 0.5%
Jardine Cycle & Carriage 4,000 42
Neptune Orient Lines 10,000 36
Rotary Engineering 267,000 221
Singapore Airlines 27,000 341
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Singapore - continued
Singapore Exchange 20,000 $ 126
Singapore Telecommunications 46,550 106
United Test and Assembly Center* 8,000 6
--------------
Total Singapore 878
- ---------------------------------------------------------------------
South Africa - 0.2%
Anglo Platinum 336 46
MTN Group 5,750 81
Standard Bank Group 5,980 85
Truworths International 18,000 91
--------------
Total South Africa 303
- ---------------------------------------------------------------------
South Korea - 0.2%
Daegu Bank 3,750 73
Hynix Semiconductor* 1,500 61
Lotte Shopping 150 59
Osstem Implant* 1,500 62
SSCP* 2,460 75
--------------
Total South Korea 330
- ---------------------------------------------------------------------
Spain - 0.2%
Banco Bilbao Vizcaya Argentaria 16,559 405
--------------
Total Spain 405
- ---------------------------------------------------------------------
Sweden - 0.7%
Electrolux, Cl B 14,600 365
JM 5,068 152
Volvo, Cl B 35,467 652
--------------
Total Sweden 1,169
- ---------------------------------------------------------------------
Switzerland - 0.3%
Nestle 63 24
Zurich Financial Services 1,417 413
--------------
Total Switzerland 437
- ---------------------------------------------------------------------
Thailand - 0.2%
CP Seven Eleven 268,000 95
Home Product Center 323,000 51
Kasikornbank 48,000 115
--------------
Total Thailand 261
- ---------------------------------------------------------------------
Turkey - 0.1%
Asya Katilim Bankasi* 8,200 56
Bim Birlesik Magazalar 900 60
--------------
Total Turkey 116
- ---------------------------------------------------------------------
39
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
United Kingdom - 1.8%
3i Group 7,451 $ 161
Antofagasta 46,424 676
Ashtead 6,039 17
AstraZeneca 7,783 402
Aviva 300 4
BHP Billiton 4,211 124
BT Group 118,559 751
CSR* 3,219 47
Fiberweb 1,988 5
Hays 12,193 40
HBOS 11,240 219
HSBC Holdings 202 4
Kazakhmys 3,354 85
Lavendon Group 2,044 27
Marks & Spencer Group 2,223 28
Michael Page International 5,146 56
Next 359 14
Royal Bank of Scotland Group 15,696 187
Royal Dutch Shell, Cl B 4,999 198
SABMiller 3,000 77
Sage Group 687 3
Sportingbet* 11,664 12
Tate & Lyle 1,914 22
Tesco 1,784 16
--------------
Total United Kingdom 3,175
--------------
Total Foreign Common Stock (Cost $20,784) 24,770
- ---------------------------------------------------------------------
Investment Company - 0.1%
Index Fund-Mid Cap - 0.1%
iShares Russell Midcap Value Index Fund 500 74
--------------
Total Index Fund-Mid Cap 74
Index Fund-Small Cap - 0.0%
iShares S&P SmallCap 600
Value Index Fund 200 15
--------------
Total Index Fund-Small Cap 15
Total Investment Company (Cost $81) 89
- ---------------------------------------------------------------------
Warrants - 0.4%
Asian Paints 144A, expires 06/15/09* 4,400 99
Bharat Heavy Electricals 144A, expires
05/12/08* 2,350 101
Grasim Industries 144A, expires
05/22/09* 900 66
Infosys Technologies 144A,expires
08/21/09* 2,600 128
IVRCL Infrastructures & Projects 144A,
expires 11/17/08* 11,800 114
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Shares/Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Warrants - continued
Nicholas Piramal India 144A,
expires 10/26/09* 12,800 $ 86
Taiwan Semiconductor 144A,
expires 02/01/12* 130 -
TXC 144A, expires 01/27/12* 36,000 82
Tianjin Port 144A,
expires 08/04/07* 73,000 59
--------------
Total Warrants (Cost $597) 735
- ---------------------------------------------------------------------
U.S. Government Agency Obligations - 11.1%
Federal Home Loan Mortgage
Corporation
6.500%, 04/01/35 $ 11 11
6.500%, 08/01/37 165 167
6.000%, 08/01/29 28 28
6.000%, 02/01/37 499 494
6.000%, 07/01/37 445 441
6.000%, 08/01/37 2,265 2,247
5.894%, 12/01/36 (A) 500 500
5.875%, 03/21/11 80 82
5.875%, 01/01/37 (A) 630 633
5.783%, 03/01/37 (A) 177 178
5.500%, 09/01/17 64 64
5.500%, 09/01/19 62 62
5.500%, 08/01/20 371 368
5.500%, 02/01/21 212 209
5.500%, 02/01/21 12 12
5.500%, 05/01/21 50 50
5.500%, 09/01/21 193 190
5.500%, 04/01/22 477 472
5.500%, 11/01/36 691 668
5.500%, 11/01/36 113 109
5.500%, 12/01/36 911 880
5.500%, 05/01/37 1,255 1,213
5.400%, 03/17/21 330 325
5.267%, 04/01/37 (A) 473 466
5.250%, 11/03/09 675 674
5.250%, 02/24/11 525 524
5.000%, 10/16/09 260 259
5.000%, 07/01/21 600 583
5.000%, 05/01/22 312 302
Federal Home Loan Mortgage
Corporation - Gold
5.500%, 06/01/22 392 388
5.500%, 12/01/36 299 289
Federal Home Loan Mortgage
Corporation - TBA
6.500%, 08/15/37 1,505 1,520
Federal National Mortgage Association
6.000%, 12/15/31 495 502
- ---------------------------------------------------------------------
40
- ---------------------------------------------------------------------
Face
Description Amount(000) Value (000)
- ---------------------------------------------------------------------
U.S. Government Agency Obligations - continued
Federal National Mortgage
Association - continued
6.500%, 03/01/35 $ 216 $ 219
6.250%, 02/01/11 400 416
6.000%, 01/01/29 144 144
6.000%, 05/01/33 123 123
6.000%, 07/01/36 209 208
6.000%, 08/01/36 39 39
6.000%, 11/01/36 167 166
6.000%, 12/01/36 226 224
5.500%, 03/01/20 72 71
5.500%, 04/01/21 41 40
5.500%, 11/01/21 176 174
5.500%, 12/01/35 1,231 1,192
5.500%, 01/01/36 273 264
5.500%, 03/01/36 360 349
5.500%, 03/01/36 294 284
5.500%, 04/01/36 162 156
5.500%, 11/01/36 206 199
5.125%, 01/02/14 95 94
5.000%, 03/01/20 37 36
5.000%, 05/01/37 272 255
--------------
Total U.S. Government Agency
Obligations (Cost $19,648) 19,563
- ---------------------------------------------------------------------
U.S. Treasury Obligations - 10.5%
U.S. Treasury Bonds
7.500%, 11/15/16 100 120
5.375%, 02/15/31 855 903
4.500%, 02/15/36 1,500 1,402
U.S. Treasury Notes
4.875%, 08/15/09 70 70
4.875%, 07/31/11 695 702
4.750%, 05/31/12 490 493
4.750%, 05/15/14 1,435 1,439
4.625%, 11/15/09 1,875 1,877
4.625%, 02/29/12 1,700 1,702
4.625%, 02/15/17 1,150 1,135
4.500%, 11/30/11 845 842
4.500%, 03/31/12 1,980 1,970
4.500%, 05/15/17 2,595 2,540
3.875%, 07/15/10 3,252 3,195
--------------
Total U.S. Treasury Obligations (Cost $18,380) 18,390
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Face
Description Amount(000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - 9.2%
Abbott Laboratories
5.600%, 05/15/11 $ 260 $ 262
Advanta Capital Trust, Ser B
8.990%, 12/17/26 119 113
Ahern Rentals
9.250%, 08/15/13 211 203
Alcoa
5.900%, 02/01/27 40 38
Allegheny Energy Supply 144A
8.250%, 04/15/12 50 52
American General Finance, Ser G MTN
5.375%, 09/01/09 120 120
Ameriprise Financial
5.350%, 11/15/10 100 100
Amgen
4.000%, 11/18/09 40 39
AOL Time Warner
6.875%, 05/01/12 130 136
Apache
5.250%, 04/15/13 260 256
Aramark 144A
8.856%, 08/01/07 (A) 105 98
AT&T Wireless
8.750%, 03/01/31 75 93
7.875%, 03/01/11 90 97
Bank of America
5.375%, 08/15/11 230 229
5.375%, 06/15/14 55 54
Bank One
5.900%, 11/15/11 130 133
5.250%, 01/30/13 145 143
Belden CDT 144A
7.000%, 03/15/17 105 99
Canadian National Railway
5.800%, 06/01/16 125 125
Canadian National Resources
5.700%, 05/15/17 185 179
Cascades
7.250%, 02/15/13 211 197
Caterpillar Financial Services
5.050%, 12/01/10 150 150
Chesapeake Energy
6.500%, 08/15/17 208 192
ChevronTexaco
3.500%, 09/17/07 220 220
Chubb
4.934%, 11/16/07 90 90
Cisco Systems
5.500%, 02/22/16 70 69
5.250%, 02/22/11 200 199
Citigroup
5.100%, 09/29/11 230 227
- ---------------------------------------------------------------------
41
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Coleman Cable 144A
9.875%, 10/01/12 $ 160 $ 166
Columbus Southern Power, Ser C
5.500%, 03/01/13 80 79
Comcast
5.900%, 03/15/16 160 156
5.875%, 02/15/18 40 38
5.300%, 01/15/14 60 57
Conocophillips Canada
5.625%, 10/15/16 150 148
Costco Wholesale
5.500%, 03/15/17 80 78
CRH America
6.000%, 09/30/16 35 34
DaimlerChrysler
4.750%, 01/15/08 160 159
Deluxe, Ser B
3.500%, 10/01/07 197 193
Denbury Resources
7.500%, 04/01/13 153 149
Deutsche Telekom
8.000%, 06/15/10 240 256
Dominion Resources, Ser A
5.600%, 11/15/16 35 34
DR Horton
7.875%, 08/15/11 75 76
Echostar DBS
7.125%, 02/01/16 300 283
ERP Operating LP
5.750%, 06/15/17 260 252
5.125%, 03/15/16 75 70
FedEx
5.500%, 08/15/09 60 60
Ford Motor Credit
7.375%, 10/28/09 200 193
FPL Group Capital
5.625%, 09/01/11 305 307
FTI Consulting
7.750%, 10/01/16 200 196
General Electric Capital, Ser A MTN
4.375%, 03/03/12 100 96
General Electric Capital, Ser G MTN
5.720%, 08/22/11 130 130
General Motors Acceptance
7.000%, 02/01/12 210 196
Harrahs Operating
6.500%, 06/01/16 400 294
Hartford Financial Services Group
5.375%, 03/15/17 65 63
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Hilton Hotels
7.500%, 12/15/17 $ 300 $ 316
Hospira
6.050%, 03/30/17 40 39
HSBC Finance
6.375%, 10/15/11 200 202
Ikon Office Solutions
7.750%, 09/15/15 240 235
International Lease Finance, Ser MTN
5.750%, 06/15/11 55 55
5.650%, 06/01/14 240 239
John Deere Capital
5.400%, 10/17/11 60 60
John Deere Capital, Ser D MTN
4.400%, 07/15/09 155 153
Kansas City Southern
9.500%, 10/01/08 89 91
Landry's Restaurants, Ser B
7.500%, 12/15/14 250 241
Masco
6.125%, 10/03/16 35 34
Mastec
7.625%, 02/01/17 100 98
Metlife
5.375%, 12/15/12 60 60
5.000%, 06/15/15 150 142
MGM Mirage
6.625%, 07/15/15 45 40
5.875%, 02/27/14 55 48
Midamerican Energy Holdings
5.875%, 10/01/12 240 243
Morgan Stanley
4.000%, 01/15/10 115 111
Neenah Paper
7.375%, 11/15/14 156 147
Neff 144A
10.000%, 06/01/15 100 92
Nextel Communications, Ser E
6.875%, 10/31/13 135 130
Norampac
6.750%, 06/01/13 211 193
Pepsico
5.150%, 05/15/12 80 80
PNC Funding
4.200%, 03/10/08 70 69
Prologis Trust
7.100%, 04/15/08 35 35
Prudential Financial, Ser B MTN
5.100%, 09/20/14 40 39
PSE&G Power
7.750%, 04/15/11 120 129
6.950%, 06/01/12 105 110
- ---------------------------------------------------------------------
42
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
PSI Energy
6.050%, 06/15/16 $ 60 $ 60
Pulte
8.125%, 03/01/11 50 49
Pulte Homes
7.875%, 08/01/11 33 33
Quebecor World 144A
9.750%, 01/15/15 150 144
Qwest
8.875%, 03/15/12 100 105
7.500%, 10/01/14 100 98
R.H. Donelley, Ser A-3
8.875%, 01/15/16 106 103
Residential Capital 144A
7.690%, 10/17/07 (A) 170 164
Rogers Cable
6.750%, 03/15/15 30 31
Rogers Communications
8.000%, 12/15/12 160 169
Saint Acquisition 144A
13.110%, 08/15/07 (A) 113 80
12.500%, 05/15/17 12 9
SBC Communications
5.625%, 06/15/16 65 63
5.100%, 09/15/14 170 161
Schering-Plough
6.750%, 12/01/33 60 65
5.550%, 12/01/13 165 166
Shell International
5.625%, 06/27/11 120 122
Simon Property Group
5.750%, 12/01/15 55 54
Southern Power, Ser B
6.250%, 07/15/12 75 77
Stater Brothers Holdings
8.125%, 06/15/12 50 48
Stater Brothers Holdings, 144A
7.750%, 04/15/15 100 93
Telecom Italia Capital
4.000%, 11/15/08 240 235
Tesoro 144A
6.500%, 06/01/17 363 343
TFM Sa De Cv
9.375%, 05/01/12 50 53
Time Warner
6.500%, 11/15/36 40 38
Time Warner Cable 144A
5.850%, 05/01/17 75 72
Toys R Us
7.875%, 04/15/13 50 41
True Temper Sports
8.375%, 09/15/11 231 193
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Face
Description mount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Turanalem Finance 144A
8.250%, 01/22/37 $ 160 $ 142
Union Pacific
3.875%, 02/15/09 295 289
Uno Restaurant 144A
10.000%, 02/15/11 50 41
Valassis Communication 144A
8.250%, 03/01/15 210 178
Virginia Electric Power
6.000%, 05/15/37 45 43
Wachovia MTN
5.700%, 08/01/13 190 191
Wal-mart Stores
4.550%, 05/01/13 75 72
Washington Mutual Financial
6.875%, 05/15/11 60 63
Weatherford International 144A
6.350%, 06/15/17 400 408
5.950%, 06/15/12 65 66
Weyerhaeuser
5.950%, 11/01/08 20 20
Willis North America
6.200%, 03/28/17 40 40
Wyeth
5.500%, 02/01/14 80 79
Xcel Energy 144A
5.613%, 04/01/17 262 258
Xerox Capital Trust I
8.000%, 02/01/27 174 176
--------------
Total Corporate Bonds (Cost $16,513) 16,042
- ---------------------------------------------------------------------
Mortgage Related - 2.7%
Banc of America Mortgage CMO,
Ser 2004-8, Cl 3A1
5.250%, 10/25/19 511 497
Banc of America Mortgage CMO,
Ser 2005-D
4.775%, 08/01/07 (A) 315 312
Bear Stearns CMBS,
Ser 2004-PWR5, Cl A4
4.831%, 07/11/42 225 215
Bear Stearns CMBS,
Ser 2005-T20, Cl A2
5.127%, 10/12/42 (A) 220 218
Bear Stearns CMBS,
Ser 2006-PW13, Cl A4
5.540%, 09/11/41 325 317
Bear Stearns CMBS,
Ser 2006-T22, Cl A2
5.632%, 04/12/38 (A) 260 260
Chase Mortgage Finance CMO,
Ser 2006-A1, Cl 2A2
6.076%, 09/25/36 (A) 400 404
- ---------------------------------------------------------------------
43
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Face Amount
Description (000)/Shares Value (000)
- ---------------------------------------------------------------------
Mortgage Related - continued
Chase Mortgage Finance CMO,
Ser 2006-A1, Cl 4A1
6.047%, 09/25/36 (A) $ 309 $ 306
Chase Mortgage Finance CMO,
Ser 2007-A1, Cl 12A2
5.946%, 08/01/07 (A) 675 682
Citigroup CMBS, Ser 2004-C2, Cl A3
4.380%, 10/15/41 320 307
Countrywide, Ser 2003-2, Cl M2
6.970%, 08/26/07 (A) 279 275
JP Morgan Chase CMBS,
Ser 2004-CBX, Cl A4
4.529%, 01/12/37 235 227
JP Morgan Chase CMBS,
Ser 2005-LDP1, Cl A2
4.625%, 03/15/46 205 201
Prime Mortgage Trust CMO,
Ser 2005-2, Cl 1A3
5.250%, 07/25/20 315 307
Wells Fargo CMO, Ser 2006-11, Cl A8
6.000%, 09/25/36 283 281
--------------
Total Mortgage Related (Cost $4,844) 4,809
- ---------------------------------------------------------------------
Foreign Bonds - 1.1%
Bundesrepublik, Ser 03 (EUR)
4.750%, 07/04/34 125 177
Bundesrepublik, Ser 02 (EUR)
5.000%, 07/04/12 90 126
Bundesrepublik, Ser 04 (EUR)
3.750%, 01/04/15 91 120
Bundesrepublik, Ser 05 (EUR)
3.500%, 01/04/16 110 142
Canada (CAD)
5.750%, 06/01/33 120 134
5.250%, 06/01/13 139 135
Citigroup, Ser INTL (JPY)
2.400%, 10/31/25 8,000 64
Development Bank of Japan, Ser INTL (JPY)
1.750%, 03/17/17 20,000 167
Netherlands Government (EUR)
4.250%, 07/15/13 95 129
Swedish Goverment, Ser 3105 (SEK)
3.500%, 12/01/15 1,400 261
United Kingdom Gilt (GBP)
4.000%, 09/07/16 220 409
--------------
Total Foreign Bonds (Cost $1,793) 1,864
- ---------------------------------------------------------------------
Money Market Fund - 7.7%
Evergreen Select Money Market Fund,
Institutional Class, 5.22% (C) 13,418,681 13,419
--------------
Total Money Market Fund (Cost $13,419) 13,419
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Value (000)
- ----------------------------------------------------------------------
Total Investments - 102.9% (Cost $168,282) $ 180,221
- ----------------------------------------------------------------------
Other Assets and Liabilities, Net - (2.9%) (4,997)
- ----------------------------------------------------------------------
Total Net Assets - 100.0% $ 175,224
- ----------------------------------------------------------------------
As of July 31, 2007, the Fund had the following forward foreign
currency contracts outstanding:
Unrealized
Settlement Currency Currency to Appreciation/
Date to Deliver Receive (Depreciation)
---------- ------------------- ----------------- ---------------
9/12/2007 EUR (136,163) AUD 218,108 $(1,196)
9/12/2007 GBP (142,469) AUD 345,963 4,803
9/12/2007 JPY (13,722,590) AUD 139,599 2,095
9/12/2007 USD (43,602) CAD 46,580 121
9/12/2007 EUR (100,112) DKK 746,170 218
9/12/2007 USD (131,613) DKK 728,072 2,428
9/12/2007 CAD (152,692) EUR 104,520 (133)
9/12/2007 GBP (315,994) EUR 462,520 (7,776)
9/12/2007 SEK (3,103,354) EUR 330,307 (9,089)
9/12/2007 USD (5,700,840) EUR 4,225,345 87,950
9/12/2007 USD (751,221) GBP 380,925 22,019
9/12/2007 EUR (1,009,343) JPY 164,139,381 11,119
9/12/2007 USD (657,351) JPY 78,954,442 13,161
9/12/2007 EUR (141,602) NOK 1,150,790 3,690
9/12/2007 USD (70,153) NOK 423,991 2,681
9/12/2007 EUR (267,507) SEK 2,480,486 2,476
9/12/2007 AUD (137,157) USD 112,195 (4,362)
9/12/2007 EUR (134,854) USD 182,081 (2,670)
9/12/2007 SEK (582,027) USD 84,474 (2,101)
--------
$125,434
--------
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
44
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Strategic Asset Allocation Consultant: Ibbotson Associates Advisors, LLC
Performance Highlights
o For the one-year period ended July 31, 2007, the Fund's Class A shares
gained 16.49% at net asset value, while the S&P 1500 Index returned 16.10%
and the Lehman Brothers U.S. Aggregate Index returned 5.56%.
o During the one-year period, the Fund's absolute gains were impacted
positively by Clay Finlay Inc.'s emerging markets mandate, Acadian Asset
Management, Inc.'s international equity mandate and Copper Rock Capital
Partners, LLC's small-cap growth strategy.
o Thompson, Siegel & Walmsley LLC's small-cap value mandate detracted from
absolute performance while Heitman Real Estate Securities LLC's REIT
mandate and Barrow, Hanley, Mewhinney & Strauss, Inc.'s intermediate-term
bond strategy contributed less than other mandates to the Fund's overall
gains.
o At the individual stock level, personal computer and related products
designer, manufacturer and marketer Apple; Latin American cellular
communication services provider NII Holdings and semiconductor manufacturer
Nvidia contributed to the Fund's absolute performance.
o On the other hand, agricultural commodity and product firm
Archer-Daniels-Midland, software systems provider Comverse Technology (no
longer a Fund holding) and entertainment technology firm IMAX (no longer a
Fund holding) were among the Fund's primary detractors.
Q. How did the Fund perform relative to its benchmarks?
A. For the one-year period ended July 31, 2007, the Old Mutual Asset
Allocation Moderate Growth Portfolio's (the "Fund") Class A shares gained
16.49% at net asset value, while the S&P 1500 Index returned 16.10% and the
Lehman Brothers U.S. Aggregate Index returned 5.56%. Performance for all
share classes can be found on page 47.
Q. What investment environment did the Fund face during the past year?
A. Ibbotson Associates Advisors, LLC ("Ibbotson") analyzes 13 asset classes
for inclusion in the Fund. During the period, returns for all of these
asset classes exceeded Ibbotson's long-term expectations except real estate
and small-cap value. Growth stocks led value stocks; mid-caps outperformed
large- and small-cap stocks; a falling dollar helped international equities
post strong gains; and, while the yield curve remained flat at compared to
historical standards, bond returns were relatively typical. Volatility, as
measured by standard deviation for all asset classes, was low compared to
historical standards.
Q. Which market factors influenced the Fund's relative performance?
A. The factors noted above combined to produce a healthy overall investment
environment for the Fund. Strong performance in emerging markets and
international equities impacted the Fund's performance positively during
the period while real estate negatively impacted returns. The exceptionally
high returns in equity real estate investment trusts ("REITs") over the
previous few years and resulting high valuations have been widely
publicized. Ibbotson's long-term target allocation to real estate in the
Fund is 3%, but Ibbotson lowered this allocation to 2% in April 2005. While
that reduction hurt the Fund's relative performance prior to February 2007
as REITs continued to perform exceptionally well, REITs have given back
some of their gains and the decision is starting to pay off.
Media attention has recently been focused on the conditions of the
sub-prime mortgage market. This is partially attributable to some highly
leveraged hedge funds (some of which belong to prominent Wall Street
firms), which became almost insolvent. The deep pockets of the owners
prevented a market-wide fire sale, but high-yield securities, which started
the year with terrific returns, declined in June and July.
While Ibbotson believes that value stocks are positioned to outperform
growth stocks over the long term, the firm has maintained equal weightings
between growth and value in the Fund since December 2005. The Fund was
positioned relatively well for the outperformance of growth stocks relative
to value stocks given Ibbotson's current position.
Q. How did portfolio composition affect Fund performance?
A. Sixteen Fund mandates produced positive returns and one produced negative
returns. During the one-year period, the Fund's absolute gains were
impacted positively by Clay Finlay Inc.'s emerging markets mandate, Acadian
Asset Management, Inc.'s international equity mandate and Copper Rock
Capital Partners, LLC's small-cap growth strategy. Thompson, Siegel &
Walmsley LLC's small-cap value mandate detracted from absolute performance
while Heitman Real Estate Securities LLC's REIT mandate and Barrow, Hanley,
Mewhinney & Strauss, Inc.'s intermediate-term bond strategy contributed
less than other mandates to the Fund's overall gains. At the individual
stock level, personal computer and related products designer, manufacturer
and marketer Apple; Latin American cellular communication services provider
NII Holdings and semiconductor manufacturer Nvidia contributed to the
Fund's absolute performance. On the other hand, agricultural commodity and
product firm Archer-Daniels-Midland, software systems provider Comverse
Asset Allocation
Moderate Growth Portfolio
45
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Strategic Asset Allocation Consultant: Ibbotson Associates Advisors, LLC
Top Ten Holdings
as of July 31, 2007
U.S. Treasury Note, 3.875%, 07/15/10 0.9%
- ---------------------------------------
NII Holdings 0.8%
- ---------------------------------------
Royal Dutch Shell, Cl A 0.8%
- ---------------------------------------
U.S. Treasury Note,
4.500%, 05/15/17 0.8%
- ---------------------------------------
Apple 0.7%
- ---------------------------------------
Nvidia 0.7%
- ---------------------------------------
ENI 0.6%
- ---------------------------------------
ING Groep 0.6%
- ---------------------------------------
BNP Paribas 0.6%
- ---------------------------------------
Cisco Systems 0.6%
- ---------------------------------------
As a % of Total
Fund Investments 7.1%
- ---------------------------------------
Technology (no longer a Fund holding) and entertainment technology firm
IMAX (no longer a Fund holding) were among the Fund's primary detractors.
Q. What is the investment outlook?
A. Ibbotson notes that overall the U.S. economy appears to be in good shape
and expects it to continue to grow at a reasonable pace through 2007.
Ibbotson also believes that the U.S. stock market seems fairly priced at
present and that large-cap stocks appear more attractive than small-cap
stocks in the near term, from both a valuation and momentum perspective.
Ibbotson intends to maintain an overweight of U.S. large-cap stocks
relative to U.S. small-cap stocks.
Ibbotson notes that upward pressure on U.S. inflation and U.S. interest
rates will likely be seen over the next two to three years, affecting
intermediate- and long-maturity bond yields. While Ibbotson sees no clear
direction in the near future for long-term yields, it expects the yield
curve to become steeper in the long run. To that end, the strategic asset
allocation consultant will continue an overweight of the short-term end of
the yield curve and an underweight of the intermediate- and long-term ends
of the curve.
Asset Allocation
Moderate Growth Portfolio
46
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- --------------------------------------------------------------------------------------------------------
1 Year Annualized
Inception Date Return Since Inception
- --------------------------------------------------------------------------------------------------------
Class A with front-end load 9/30/04 9.77% 10.77%
Class A without load 9/30/04 16.49% 13.11%
Class C with deferred sales load 9/30/04 14.63% 12.28%
Class C without deferred sales load 9/30/04 15.63% 12.28%
Class Z 12/09/05 16.91% 12.93%
Institutional Class 9/30/04 16.74% 13.41%
S&P 1500 Index 9/30/04 16.10% 12.27%
Lehman Brothers U.S. Aggregate Index 9/30/04 5.56% 3.37%
- --------------------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative indexes can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
1.91% and 1.55%; 2.62% and 2.30%; 1.62% and 1.30%; 1.56% and 1.30%,
respectively. Expenses for Class Z shares are based on estimated amounts.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
9/30/04 7/31/05 7/31/06 7/31/07
Asset Allocation Moderate Growth Portfolio, Institutional Class $10,000 $11,342 $12,233 $14,281
Asset Allocation Moderate Growth Portfolio, Class A $9,425 $10,661 $11,470 $13,361
Asset Allocation Moderate Growth Portfolio, Class C $10,000 $11,245 $12,009 $13,886
S&P 1500 Index $10,000 $11,359 $11,954 $13,879
Lehman Brothers US Aggregate Bond Index $10,000 $10,256 $10,405 $10,984
Past performance is not a guarantee of future results. The graph above compares
an investment made in the Fund's Class A, C and Institutional shares on the
inception date of 9/30/04 to an investment made in unmanaged securities indexes
on that date. The performance of the Fund's Class A shares shown in the line
graph takes into account the maximum initial sales charge. The Fund's
performance in this chart and the performance table assumes reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Common Stock 59.1%
Foreign Common Stock 19.7%
U.S. Treasury Obligations 5.6%
U.S. Government Agency Obligations 5.4%
Corporate Bonds 3.1%
Cash Equivalent 4.3%
Mortgage Related 1.4%
Foreign Bonds 0.7%
Warrants 0.6%
Investment Companies 0.1%
Foreign Preferred Stock 0.0%
100.0%
47
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 59.8%
Advanced Materials/Products - 0.1%
Hexcel* 6,600 $ 143
--------------
Total Advanced Materials/Products 143
- ---------------------------------------------------------------------
Advertising Sales - 0.1%
Focus Media Holding ADR* 2,900 120
--------------
Total Advertising Sales 120
- ---------------------------------------------------------------------
Advertising Services - 0.0%
inVentiv Health* 2,950 105
--------------
Total Advertising Services 105
- ---------------------------------------------------------------------
Aerospace/Defense - 1.3%
Aerovironment* 4,260 84
Boeing 12,705 1,314
General Dynamics 9,265 728
Rockwell Collins 11,675 802
Teledyne Technologies* 2,510 111
--------------
Total Aerospace/Defense 3,039
- ---------------------------------------------------------------------
Aerospace/Defense-Equipment - 0.4%
Alliant Techsystems* 4,250 421
B/E Aerospace* 9,599 390
DRS Technologies 2,221 116
Goodrich 1,195 75
--------------
Total Aerospace/Defense-Equipment 1,002
- ---------------------------------------------------------------------
Agricultural Chemicals - 0.6%
Agrium 6,500 273
CF Industries Holdings 1,500 86
Monsanto 17,305 1,115
--------------
Total Agricultural Chemicals 1,474
- ---------------------------------------------------------------------
Agricultural Operations - 0.2%
Archer-Daniels-Midland 9,677 325
Tejon Ranch* 2,530 100
--------------
Total Agricultural Operations 425
- ---------------------------------------------------------------------
Airlines - 0.2%
AMR* 8,100 200
Delta Air Lines* 2,140 38
Southwest Airlines 394 6
UAL* 1,995 88
US Airways Group* 1,475 46
--------------
Total Airlines 378
- ---------------------------------------------------------------------
Apparel Manufacturers - 0.0%
Carter's* 3,500 74
Gymboree* 273 12
--------------
Total Apparel Manufacturers 86
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Appliances - 0.0%
Whirlpool 662 $ 68
--------------
Total Appliances 68
- ---------------------------------------------------------------------
Applications Software - 0.5%
Citrix Systems* 2,650 96
Intuit* 2,960 85
Microsoft 25,430 737
Nuance Communications* 2,670 44
Red Hat* 4,535 94
Visual Sciences* 2,622 45
--------------
Total Applications Software 1,101
- ---------------------------------------------------------------------
Auction House/Art Dealer - 0.0%
Sotheby's 1,870 80
--------------
Total Auction House/Art Dealer 80
- ---------------------------------------------------------------------
Audio/Video Products - 0.0%
DTS* 1,325 28
--------------
Total Audio/Video Products 28
- ---------------------------------------------------------------------
Auto-Cars/Light Trucks - 0.2%
Ford Motor* 31,105 265
General Motors 5,411 175
--------------
Total Auto-Cars/Light Trucks 440
- ---------------------------------------------------------------------
Auto/Truck Parts & Equipment-Original - 0.0%
Amerigon* 2,236 36
--------------
Total Auto/Truck Parts & Equipment-Original 36
- ---------------------------------------------------------------------
Batteries/Battery Systems - 0.0%
EnerSys* 2,100 38
--------------
Total Batteries/Battery Systems 38
- ---------------------------------------------------------------------
Beverages-Non-Alcoholic - 0.2%
Coca-Cola 5,150 268
Coca-Cola Bottling 1,740 91
--------------
Total Beverages-Non-Alcoholic 359
- ---------------------------------------------------------------------
Brewery - 0.2%
Cia Cervecerias Unidas ADR 3,500 130
Molson Coors Brewing, Cl B 4,800 427
--------------
Total Brewery 557
- ---------------------------------------------------------------------
Broadcast Services/Programming - 0.0%
Clear Channel Communications 144 5
--------------
Total Broadcast Services/Programming 5
- ---------------------------------------------------------------------
Building & Construction-Miscellaneous - 0.1%
Orascom Construction GDR 960 135
--------------
Total Building & Construction-Miscellaneous 135
- ---------------------------------------------------------------------
48
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Building Products-Air & Heating - 0.0%
AAON 3,150 $ 94
--------------
Total Building Products-Air & Heating 94
- ---------------------------------------------------------------------
Building Products-Cement/Aggregate - 0.1%
Martin Marietta Materials 1,580 216
--------------
Total Building Products-Cement/Aggregate 216
- ---------------------------------------------------------------------
Building Products-Light Fixtures - 0.1%
Genlyte Group* 3,100 216
--------------
Total Building Products-Light Fixtures 216
- ---------------------------------------------------------------------
Building-Heavy Construction - 0.1%
Washington Group International* 2,085 167
--------------
Total Building-Heavy Construction 167
- ---------------------------------------------------------------------
Building-Mobile Home/Manufactured Housing - 0.0%
Williams Scotsman International* 840 23
--------------
Total Building-Mobile Home/Manufactured Housing 23
- ---------------------------------------------------------------------
Cable TV - 0.3%
Comcast, Cl A* 13,845 362
DIRECTV Group* 14,757 331
--------------
Total Cable TV 693
- ---------------------------------------------------------------------
Casino Hotels - 0.4%
Harrah's Entertainment 38 3
MGM Mirage* 11,280 825
--------------
Total Casino Hotels 828
- ---------------------------------------------------------------------
Casino Services - 0.1%
International Game Technology 3,725 132
--------------
Total Casino Services 132
- ---------------------------------------------------------------------
Cellular Telecommunications - 1.3%
Alltel 120 8
America Movil, Ser L ADR 2,700 162
MetroPCS Communications* 21,650 793
NII Holdings* 22,870 1,921
Tim Participacoes ADR 3,900 135
Turkcell Iletisim ADR 10,418 184
--------------
Total Cellular Telecommunications 3,203
- ---------------------------------------------------------------------
Chemicals-Diversified - 0.4%
Celanese, Ser A 6,200 233
E.I. du Pont de Nemours 11,210 524
Lyondell Chemical 1,875 84
Olin 2,015 42
--------------
Total Chemicals-Diversified 883
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Chemicals-Specialty - 0.3%
Hercules* 8,704 $ 181
Lubrizol 6,800 426
Terra Industries* 7,100 174
--------------
Total Chemicals-Specialty 781
- ---------------------------------------------------------------------
Coal - 0.2%
Alpha Natural Resources* 3,410 61
Arch Coal 2,190 66
Consol Energy 4,500 187
Massey Energy 3,780 81
Peabody Energy 2,820 119
--------------
Total Coal 514
- ---------------------------------------------------------------------
Commercial Banks Non-US - 0.1%
Banco Itau Holding Financeira ADR 5,700 261
Kazkommertsbank GDR* 2,900 52
--------------
Total Commercial Banks Non-US 313
- ---------------------------------------------------------------------
Commercial Banks-Central US - 0.2%
Bank Mutual 7,600 80
First Busey 2,800 54
First Midwest Bancorp 1,500 50
Heartland Financial USA 2,000 34
Irwin Financial 9,200 108
MB Financial 4,150 132
Old Second Bancorp 2,400 66
--------------
Total Commercial Banks-Central US 524
- ---------------------------------------------------------------------
Commercial Banks-Eastern US - 0.0%
Independent Bank 2,400 65
--------------
Total Commercial Banks-Eastern US 65
- ---------------------------------------------------------------------
Commercial Banks-Southern US - 0.2%
Colonial BancGroup 16,850 367
--------------
Total Commercial Banks-Southern US 367
- ---------------------------------------------------------------------
Commercial Banks-Western US - 0.2%
AmericanWest Bancorp 2,700 41
Centennial Bank Holdings* 13,350 87
Community Bancorp* 277 7
Glacier Bancorp 2,650 51
ITLA Capital* 1,700 72
Silver State Bancorp* 2,900 54
Sterling Financial 2,550 58
SVB Financial Group* 1,350 71
--------------
Total Commercial Banks-Western US 441
- ---------------------------------------------------------------------
Commercial Services - 0.3%
Alliance Data Systems* 1,060 81
Arbitron 2,030 101
ChoicePoint* 2,335 90
eTelecare Global Solutions ADR* 7,800 119
ExlService Holdings* 3,049 52
- ---------------------------------------------------------------------
49
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Commercial Services - continued
PHH* 3,900 $ 114
Steiner Leisure* 2,100 88
--------------
Total Commercial Services 645
- ---------------------------------------------------------------------
Commercial Services-Finance - 0.1%
Wright Express* 4,145 141
--------------
Total Commercial Services-Finance 141
- ---------------------------------------------------------------------
Communications Software - 0.1%
Avid Technology* 5,520 177
DivX* 4,030 55
--------------
Total Communications Software 232
- ---------------------------------------------------------------------
Computer Aided Design - 0.0%
Parametric Technology* 4,600 81
--------------
Total Computer Aided Design 81
- ---------------------------------------------------------------------
Computer Services - 0.1%
Cognizant Tech Solutions, Cl A* 1,895 154
Electronic Data Systems 1,950 53
Perot Systems, Cl A* 4,350 66
Syntel 1,285 46
--------------
Total Computer Services 319
- ---------------------------------------------------------------------
Computer Software - 0.1%
Double-Take Software* 4,294 66
Omniture* 3,070 70
--------------
Total Computer Software 136
- ---------------------------------------------------------------------
Computers - 1.9%
Apple* 13,025 1,716
Dell* 4,830 135
Hewlett-Packard 25,086 1,155
International Business Machines 5,032 557
Research In Motion* 4,175 893
Sun Microsystems* 5,490 28
--------------
Total Computers 4,484
- ---------------------------------------------------------------------
Computers-Integrated Systems - 0.1%
NCI, Cl A* 5,820 91
Radisys* 4,350 51
Riverbed Technology* 680 30
--------------
Total Computers-Integrated Systems 172
- ---------------------------------------------------------------------
Computers-Memory Devices - 0.4%
EMC* 45,830 848
Xyratex* 3,300 74
--------------
Total Computers-Memory Devices 922
- ---------------------------------------------------------------------
Computers-Peripheral Equipment - 0.1%
Electronics for Imaging* 4,810 126
--------------
Total Computers-Peripheral Equipment 126
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Consulting Services - 0.2%
Advisory Board* 1,440 $ 74
FTI Consulting* 5,067 208
Huron Consulting Group* 835 57
LECG* 5,150 72
MAXIMUS 2,730 114
--------------
Total Consulting Services 525
- ---------------------------------------------------------------------
Consumer Products-Miscellaneous - 0.0%
Kimberly-Clark 932 63
--------------
Total Consumer Products-Miscellaneous 63
- ---------------------------------------------------------------------
Containers-Metal/Glass - 0.3%
Owens-Illinois* 15,100 604
--------------
Total Containers-Metal/Glass 604
- ---------------------------------------------------------------------
Containers-Paper/Plastic - 0.2%
Pactiv* 90 3
Sealed Air 12,200 332
--------------
Total Containers-Paper/Plastic 335
- ---------------------------------------------------------------------
Cruise Lines - 0.2%
Carnival 9,014 399
--------------
Total Cruise Lines 399
- ---------------------------------------------------------------------
Data Processing/Management - 0.2%
Acxiom 3,700 93
Automatic Data Processing 4,600 213
Commvault Systems* 3,875 66
Fair Isaac 550 22
First Data 324 10
--------------
Total Data Processing/Management 404
- ---------------------------------------------------------------------
Dental Supplies & Equipment - 0.1%
Patterson* 1,295 46
Sirona Dental Systems* 2,400 85
--------------
Total Dental Supplies & Equipment 131
- ---------------------------------------------------------------------
Diagnostic Equipment - 0.1%
Gen-Probe* 2,235 141
--------------
Total Diagnostic Equipment 141
- ---------------------------------------------------------------------
Diagnostic Kits - 0.1%
Inverness Medical Innovations* 2,500 121
--------------
Total Diagnostic Kits 121
- ---------------------------------------------------------------------
Dialysis Centers - 0.1%
DaVita* 565 30
Dialysis Corp of America* 8,710 87
--------------
Total Dialysis Centers 117
- ---------------------------------------------------------------------
Direct Marketing - 0.0%
Valuevision Media, Cl A* 7,450 68
--------------
Total Direct Marketing 68
- ---------------------------------------------------------------------
50
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Distribution/Wholesale - 0.1%
Bell Microproducts* 2,090 $ 13
Fastenal 3,895 175
Owens & Minor 2,700 104
--------------
Total Distribution/Wholesale 292
- ---------------------------------------------------------------------
Diversified Manufacturing Operations - 1.3%
3M 6,010 535
Dover 7,850 400
General Electric 21,750 843
Honeywell International 7,931 456
Illinois Tool Works 9,608 529
Tyco International 7,578 358
--------------
Total Diversified Manufacturing Operations 3,121
- ---------------------------------------------------------------------
Diversified Minerals - 0.2%
Cia Vale do Rio Doce ADR 5,000 245
Oglebay Norton* 5,000 150
--------------
Total Diversified Minerals 395
- ---------------------------------------------------------------------
Diversified Operations - 0.0%
Resource America, Cl A 2,250 34
Walter Industries 2,510 63
--------------
Total Diversified Operations 97
- ---------------------------------------------------------------------
Drug Delivery Systems - 0.1%
Hospira* 4,070 157
--------------
Total Drug Delivery Systems 157
- ---------------------------------------------------------------------
E Commerce/Products - 0.1%
Blue Nile* 720 54
Submarino GDR 144A* 1,600 127
--------------
Total E-Commerce/Products 181
- ---------------------------------------------------------------------
E Commerce/Services - 0.1%
Expedia* 2,526 67
Liberty Media - Interactive, Cl A* 4,005 84
Priceline.com* 880 56
--------------
Total E-Commerce/Services 207
- ---------------------------------------------------------------------
E Services/Consulting - 0.1%
GSI Commerce* 5,080 113
Perficient* 5,389 107
--------------
Total E-Services/Consulting 220
- ---------------------------------------------------------------------
Educational Software - 0.1%
Blackboard* 1,680 74
SkillSoft ADR* 8,400 72
--------------
Total Educational Software 146
- ---------------------------------------------------------------------
Electric Products-Miscellaneous - 0.1%
Emerson Electric 6,542 308
--------------
Total Electric Products-Miscellaneous 308
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Electric-Integrated - 1.2%
Centerpoint Energy 29,000 $ 478
CMS Energy 746 12
Dominion Resources 3,900 328
DTE Energy 9,800 455
Duke Energy 13,559 231
Edison International 4,115 218
Entergy 5,006 500
Otter Tail 2,800 83
Pike Electric* 4,100 81
PPL 11,100 523
TXU 226 15
--------------
Total Electric-Integrated 2,924
- ---------------------------------------------------------------------
Electronic Components-Miscellaneous - 0.3%
AU Optronics ADR 5,800 98
Celestica* 21,810 129
Flextronics International* 3,705 41
Hon Hai Precision GDR 144A 12,750 212
Tyco Electronics* 3,735 134
--------------
Total Electronic Components-Miscellaneous 614
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - 1.7%
Broadcom, Cl A* 26,190 859
DSP Group* 15,480 276
Ikanos Communications* 12,680 91
International Rectifier* 920 34
Intersil, Cl A 5,070 148
Microchip Technology 2,880 105
Micron Technology* 2,750 33
Microsemi* 4,300 100
Netlogic Microsystems* 2,370 72
Nvidia* 35,095 1,606
QLogic* 3,690 49
Samsung Electronics GDR 144A 980 323
Semtech* 1,865 30
Silicon Laboratories* 1,520 53
SiRF Technology Holdings* 4,840 113
Texas Instruments 3,435 121
Volterra Semiconductor* 2,310 27
Zoran* 2,990 56
--------------
Total Electronic Components-Semiconductors 4,096
- ---------------------------------------------------------------------
Electronic Design Automation - 0.1%
Comtech Group* 4,960 70
Magma Design Automation* 3,280 49
Synplicity* 18,450 129
--------------
Total Electronic Design Automation 248
- ---------------------------------------------------------------------
51
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Electronic Forms - 0.3%
Adobe Systems* 18,630 $ 751
--------------
Total Electronic Forms 751
- ---------------------------------------------------------------------
Electronic Measuring Instruments - 0.2%
Agilent Technologies* 10,300 393
Itron* 1,305 104
--------------
Total Electronic Measuring Instruments 497
- ---------------------------------------------------------------------
Electronic Parts Distribution - 0.1%
Arrow Electronics* 7,500 287
--------------
Total Electronic Parts Distribution 287
- ---------------------------------------------------------------------
Electronic Security Devices - 0.0%
Taser International* 2,925 45
--------------
Total Electronic Security Devices 45
- ---------------------------------------------------------------------
Electronics Military - 0.1%
EDO 3,360 111
L-3 Communications Holdings 2,400 234
--------------
Total Electronics-Military 345
- ---------------------------------------------------------------------
Energy-Alternate Sources - 0.1%
Covanta Holding* 2,500 284
Evergreen Solar* 3,900 32
--------------
Total Energy-Alternate Sources 316
- ---------------------------------------------------------------------
Engineering/R&D Services - 0.5%
Fluor 3,061 354
McDermott International* 7,575 628
Shaw Group* 2,550 136
--------------
Total Engineering/R&D Services 1,118
- ---------------------------------------------------------------------
Engines-Internal Combustion - 0.3%
Cummins 6,070 720
--------------
Total Engines-Internal Combustion 720
- ---------------------------------------------------------------------
Enterprise Software/Services - 0.8%
BMC Software* 14,600 419
Concur Technologies* 1,998 48
Informatica* 3,300 46
Lawson Software* 11,070 106
Open Text* 3,950 74
Oracle* 31,650 605
PROS Holdings* 4,020 50
Sybase* 15,600 370
Taleo, Cl A* 1,464 32
Ultimate Software Group* 2,400 65
--------------
Total Enterprise Software/Services 1,815
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Entertainment Software - 0.2%
Activision* 11,851 $ 203
Electronic Arts* 2,400 116
THQ* 2,535 73
--------------
Total Entertainment Software 392
- ---------------------------------------------------------------------
Environmental Consulting & Engineering - 0.0%
Tetra Tech* 4,800 101
--------------
Total Environmental Consulting & Engineering 101
- ---------------------------------------------------------------------
Fiduciary Banks - 0.3%
Bank of New York Mellon 10,228 435
Northern Trust 5,900 369
--------------
Total Fiduciary Banks 804
- ---------------------------------------------------------------------
Filtration/Separation Products - 0.2%
Clarcor 4,250 148
Pall 8,200 340
--------------
Total Filtration/Separation Products 488
- ---------------------------------------------------------------------
Finance-Consumer Loans - 0.3%
Encore Capital Group* 6,720 70
First Marblehead 2,680 88
Nelnet, Cl A 4,490 78
SLM 9,482 466
--------------
Total Finance-Consumer Loans 702
- ---------------------------------------------------------------------
Finance-Credit Card - 0.1%
American-Express 4,000 234
Discover Financial Services* 2,698 62
--------------
Total Finance-Credit Card 296
- ---------------------------------------------------------------------
Finance-Investment Banker/Broker - 0.9%
Bear Stearns 1,700 206
Citigroup 10,804 503
Cowen* 4,450 64
Greenhill 885 51
JPMorgan Chase 15,387 677
KBW* 300 8
MF Global* 1,360 34
Morgan Stanley 6,110 390
optionsXpress Holdings 3,635 91
--------------
Total Finance-Investment Banker/Broker 2,024
- ---------------------------------------------------------------------
Finance-Other Services - 0.2%
Asset Acceptance Capital 15,955 221
GFI Group* 760 57
NASDAQ Stock Market* 5,005 154
--------------
Total Finance-Other Services 432
- ---------------------------------------------------------------------
52
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Financial Guarantee Insurance - 0.1%
AMBAC Financial Group 1,315 $ 88
MGIC Investment 2,811 109
--------------
Total Financial Guarantee Insurance 197
- ---------------------------------------------------------------------
Food-Dairy Products - 0.2%
Dean Foods 7,950 229
Wimm-Bill-Dann Foods ADR 1,650 155
--------------
Total Food-Dairy Products 384
- ---------------------------------------------------------------------
Food-Meat Products - 0.1%
Tyson Foods, Cl A 11,577 247
--------------
Total Food-Meat Products 247
- ---------------------------------------------------------------------
Food-Miscellaneous/Diversified - 0.3%
Kraft Foods, Cl A 7,298 239
Sara Lee 28,950 459
SunOpta* 3,935 44
--------------
Total Food-Miscellaneous/Diversified 742
- ---------------------------------------------------------------------
Food Retail - 0.1%
Great Atlantic & Pacific Tea* 3,250 95
X5 Retail Group GDR* 3,900 121
--------------
Total Food-Retail 216
- ---------------------------------------------------------------------
Food-Wholesale/Distribution - 0.0%
United Natural Foods* 3,580 97
--------------
Total Food-Wholesale/Distribution 97
- ---------------------------------------------------------------------
Footwear & Related Apparel - 0.0%
Heelys* 2,810 62
Skechers U.S.A., Cl A* 2,140 44
--------------
Total Footwear & Related Apparel 106
- ---------------------------------------------------------------------
Forestry - 0.1%
Plum Creek Timber 8,600 334
--------------
Total Forestry 334
- ---------------------------------------------------------------------
Gambling (Non-Hotel) - 0.1%
Pinnacle Entertainment* 5,331 141
--------------
Total Gambling (Non-Hotel) 141
- ---------------------------------------------------------------------
Gas Distribution - 0.0%
WGL Holdings 1,410 42
--------------
Total Gas-Distribution 42
- ---------------------------------------------------------------------
Golf - 0.0%
Callaway Golf 1,560 25
--------------
Total Golf 25
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Hazardous Waste Disposal - 0.1%
Stericycle* 6,070 $ 291
--------------
Total Hazardous Waste Disposal 291
- ---------------------------------------------------------------------
Health Care Cost Containment - 0.2%
Hooper Holmes* 5,280 14
Mckesson 6,624 382
--------------
Total Health Care Cost Containment 396
- ---------------------------------------------------------------------
Hospital Beds/Equipment - 0.2%
Kinetic Concepts* 6,300 387
--------------
Total Hospital Beds/Equipment 387
- ---------------------------------------------------------------------
Hotels & Motels - 0.2%
Hilton Hotels 1,009 45
Lodgian* 4,650 59
Marriott International, Cl A 5,132 213
Wyndham Worldwide* 2,050 69
--------------
Total Hotels & Motels 386
- ---------------------------------------------------------------------
Human Resources - 0.5%
Hewitt Associates, Cl A* 18,460 552
Hudson Highland Group* 4,020 67
Kenexa* 1,319 47
Manpower 4,400 348
Monster Worldwide* 4,220 164
--------------
Total Human Resources 1,178
- ---------------------------------------------------------------------
Import/Export - 0.0%
Castle Brands* 3,102 15
--------------
Total Import/Export 15
- ---------------------------------------------------------------------
Independent Power Producer - 0.0%
Calpine* 6,910 19
Mirant* 500 19
Reliant Energy* 1,580 40
--------------
Total Independent Power Producer 78
- ---------------------------------------------------------------------
Industrial Audio & Video Products - 0.0%
SRS Labs* 4,244 49
--------------
Total Industrial Audio & Video Products 49
- ---------------------------------------------------------------------
Industrial Automation/Robot - 0.2%
Cognex 2,630 55
Intermec* 5,000 128
Rockwell Automation 3,500 245
--------------
Total Industrial Automation/Robot 428
- ---------------------------------------------------------------------
53
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Industrial Gases - 0.5%
Air Products & Chemicals 385 $ 33
Praxair 16,320 1,251
--------------
Total Industrial Gases 1,284
- ---------------------------------------------------------------------
Instruments-Controls - 0.0%
Watts Water Technologies, Cl A 2,550 89
--------------
Total Instruments-Controls 89
- ---------------------------------------------------------------------
Instruments-Scientific - 0.2%
PerkinElmer 19,300 537
--------------
Total Instruments-Scientific 537
- ---------------------------------------------------------------------
Insurance Brokers - 0.1%
Marsh & McLennan 8,900 245
--------------
Total Insurance Brokers 245
- ---------------------------------------------------------------------
Internet Application Software - 0.1%
Cryptologic 2,060 44
DealerTrack Holdings* 4,281 154
Interwoven* 3,700 51
Vocus* 1,201 34
--------------
Total Internet-Application Software 283
- ---------------------------------------------------------------------
Internet Financial Services - 0.1%
Authorize.net Holdings* 4,505 78
Online Resources* 6,645 73
--------------
Total Internet Financial Services 151
- ---------------------------------------------------------------------
Internet Infrastructure Software - 0.2%
Akamai Technologies* 2,295 78
F5 Networks* 2,445 212
Opsware* 6,480 91
Radvision Limited* 1,530 26
--------------
Total Internet Infrastructure Software 407
- ---------------------------------------------------------------------
Internet Security - 0.1%
Checkfree* 1,675 62
Ipass* 3,080 14
Symantec* 11,610 223
VeriSign* 67 2
--------------
Total Internet Security 301
- ---------------------------------------------------------------------
Investment Management/Advisory Services - 0.3%
Affiliated Managers Group* 1,390 157
Franklin Resources 3,465 441
Legg Mason 1,720 155
--------------
Total Investment Management/Advisory Services 753
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Lasers-Systems/Components - 0.1%
Electro Scientific Industries* 5,270 $ 115
Newport* 4,800 63
--------------
Total Lasers-Systems/Components 178
- ---------------------------------------------------------------------
Life/Health Insurance - 0.2%
Cigna 8,200 423
--------------
Total Life/Health Insurance 423
- ---------------------------------------------------------------------
Linen Supply & Related Items - 0.0%
Cintas 1,670 61
--------------
Total Linen Supply & Related Items 61
- ---------------------------------------------------------------------
Machine Tools & Related Products - 0.2%
Kennametal 7,100 544
--------------
Total Machine Tools & Related Products 544
- ---------------------------------------------------------------------
Machinery-Construction & Mining - 0.4%
Bucyrus International, Cl A 1,100 70
Caterpillar 9,505 749
Terex* 3,500 302
--------------
Total Machinery-Construction & Mining 1,121
- ---------------------------------------------------------------------
Machinery-Electrical - 0.1%
Baldor Electric 1,600 73
Franklin Electric 2,500 116
--------------
Total Machinery-Electrical 189
- ---------------------------------------------------------------------
Machinery-General Industry - 0.2%
Manitowoc 3,200 249
Wabtec 6,150 251
--------------
Total Machinery-General Industry 500
- ---------------------------------------------------------------------
Machinery-Print Trade - 0.0%
Zebra Technologies, Cl A* 455 16
--------------
Total Machinery-Print Trade 16
- ---------------------------------------------------------------------
Medical Imaging Systems - 0.0%
IRIS International* 2,197 35
--------------
Total Medical Imaging Systems 35
- ---------------------------------------------------------------------
Medical Information Systems - 0.3%
Cerner* 12,435 658
IMS Health 2,610 73
--------------
Total Medical Information Systems 731
- ---------------------------------------------------------------------
54
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical Instruments - 0.4%
Abaxis* 2,143 $ 39
Cambridge Heart* 5,860 23
Conceptus* 5,867 95
Medtronic 5,750 291
Micrus Endovascular* 2,108 50
Natus Medical* 9,920 151
St. Jude Medical* 1,365 59
Symmetry Medical* 8,860 132
--------------
Total Medical Instruments 840
- ---------------------------------------------------------------------
Medical Labs & Testing Services - 0.2%
Covance* 1,790 126
Laboratory Corp of America Holdings* 4,400 325
--------------
Total Medical Labs & Testing Services 451
- ---------------------------------------------------------------------
Medical Products - 0.5%
Baxter International 7,525 396
Covidien* 4,633 190
Henry Schein* 3,975 216
Orthofix International* 1,830 79
PSS World Medical* 6,400 110
Syneron Medical* 2,320 55
Vital Signs 1,250 65
--------------
Total Medical Products 1,111
- ---------------------------------------------------------------------
Medical-Biomedical/Genetic - 0.7%
Cambrex 3,360 46
Celgene* 4,340 263
Genzyme* 10,910 688
Integra LifeSciences Holdings* 2,200 109
Invitrogen* 925 66
Keryx Biopharmaceuticals* 4,940 42
Lifecell* 3,020 93
Martek Biosciences* 3,890 100
Orchid Cellmark* 3,720 19
PDL BioPharma* 4,625 109
--------------
Total Medical-Biomedical/Genetic 1,535
- ---------------------------------------------------------------------
Medical-Drugs - 1.7%
Angiotech Pharmaceuticals* 36,700 254
Aspreva Pharmaceuticals* 3,860 66
Axcan Pharma* 6,480 119
Bristol-Myers Squibb 15,542 442
Cephalon* 7,515 565
Indevus Pharmaceuticals* 6,350 45
Medicis Pharmaceutical, Cl A 1,260 36
Pfizer 37,793 889
Santarus* 8,836 42
Schering Plough 34,205 976
Valeant Pharmaceuticals International 5,980 94
Wyeth 11,696 567
--------------
Total Medical-Drugs 4,095
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical-Generic Drugs - 0.0%
Perrigo 4,185 $ 78
--------------
Total Medical-Generic Drugs 78
- ---------------------------------------------------------------------
Medical-HMO - 0.3%
Humana* 711 46
WellPoint* 7,511 564
--------------
Total Medical-HMO 610
- ---------------------------------------------------------------------
Medical-Hospitals - 0.1%
Universal Health Services, Cl B 6,200 325
--------------
Total Medical-Hospitals 325
- ---------------------------------------------------------------------
Medical-Nursing Homes - 0.0%
Assisted Living Concepts, Cl A* 7,300 66
Skilled Healthcare Group, Cl A* 2,750 38
--------------
Total Medical-Nursing Homes 104
- ---------------------------------------------------------------------
Medical-Outpatient/Home Medical - 0.1%
Lincare Holdings* 3,200 114
Radiation Therapy Services* 5,152 146
--------------
Total Medical-Outpatient/Home Medical 260
- ---------------------------------------------------------------------
Medical-Wholesale Drug Distributors - 0.3%
AmerisourceBergen 7,700 363
Cardinal Health 5,685 373
--------------
Total Medical-Wholesale Drug Distributors 736
- ---------------------------------------------------------------------
Metal Processors & Fabricators - 0.7%
CIRCOR International 2,300 92
Commercial Metals 9,100 281
Haynes International* 2,380 214
Ladish* 4,643 225
Precision Castparts 2,630 360
Sterlite Industries ADR* 26,450 430
--------------
Total Metal Processors & Fabricators 1,602
- ---------------------------------------------------------------------
Metal Products-Distributors - 0.1%
AM Castle 4,400 145
--------------
Total Metal Products Distributors 145
- ---------------------------------------------------------------------
Metal-Aluminum - 0.0%
Alcoa 2,670 102
--------------
Total Metal-Aluminum 102
- ---------------------------------------------------------------------
Miscellaneous Manufacturing - 0.0%
Trimas* 8,980 106
--------------
Total Miscellaneous Manufacturing 106
- ---------------------------------------------------------------------
Motion Pictures & Services - 0.0%
Macrovision* 1,540 37
--------------
Total Motion Pictures & Services 37
- ---------------------------------------------------------------------
55
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Multi-Line Insurance - 1.2%
Allstate 6,386 $ 339
American International Group 6,900 443
Cincinnati Financial 9,700 380
Hartford Financial Services Group 8,288 762
Loews 8,802 417
XL Capital, Cl A 7,044 549
--------------
Total Multi-Line Insurance 2,890
- ---------------------------------------------------------------------
Multimedia - 0.1%
Entravision Communications, Cl A* 3,705 35
Gemstar-TV Guide International* 12,290 70
Walt Disney 1,632 54
--------------
Total Multimedia 159
- ---------------------------------------------------------------------
Networking Products - 0.8%
Anixter International* 1,350 112
Atheros Communications* 1,580 44
Cisco Systems* 48,200 1,393
Foundry Networks* 1,535 27
Juniper Networks* 5,355 160
Switch & Data Facilities* 4,045 64
--------------
Total Networking Products 1,800
- ---------------------------------------------------------------------
Non-Ferrous Metals - 0.3%
Cameco 15,070 615
--------------
Total Non-Ferrous Metals 615
- ---------------------------------------------------------------------
Non-Hazardous Waste Disposal - 0.3%
Allied Waste Industries* 32,865 423
Waste Management 4,940 188
--------------
Total Non-Hazardous Waste Disposal 611
- ---------------------------------------------------------------------
Office Automation & Equipment - 0.1%
Pitney Bowes 3,165 146
--------------
Total Office Automation & Equipment 146
- ---------------------------------------------------------------------
Office Supplies & Forms - 0.2%
Avery Dennison 6,400 393
--------------
Total Office Supplies & Forms 393
- ---------------------------------------------------------------------
Oil & Gas Drilling - 0.2%
Atlas America 3,150 153
Diamond Offshore Drilling 1,690 175
Patterson-UTI Energy 5,325 122
Pride International* 1,865 65
Rowan 1,115 47
--------------
Total Oil & Gas Drilling 562
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - 1.5%
Arena Resources* 1,070 $ 58
ATP Oil & Gas* 1,585 72
Cabot Oil & Gas 2,700 92
Denbury Resources* 3,330 133
EnCana 4,935 301
Forest Oil* 2,600 105
Gazprom ADR 2,550 109
Goodrich Petroleum* 2,300 69
Harvest Natural Resources* 11,090 125
Murphy Oil 1,700 106
Newfield Exploration* 7,100 341
NovaTek GDR 3,500 187
Occidental Petroleum 10,824 614
Parallel Petroleum* 2,510 51
PetroHawk Energy* 6,100 92
Southwestern Energy* 21,440 871
Stone Energy* 3,360 109
Ultra Petroleum* 2,240 124
--------------
Total Oil Companies-Exploration & Production 3,559
- ---------------------------------------------------------------------
Oil Companies-Integrated - 1.3%
BP ADR 2,574 179
Chevron 2,874 245
ConocoPhillips 8,012 648
Exxon Mobil 9,185 782
Hess 5,300 324
LUKOIL ADR 1,700 137
Marathon Oil 5,633 311
Petroleo Brasileiro ADR 6,150 399
--------------
Total Oil Companies-Integrated 3,025
- ---------------------------------------------------------------------
Oil Field Machinery & Equipment - 0.3%
Dresser-Rand Group* 2,640 98
Grant Prideco* 3,100 174
National Oilwell Varco* 3,215 386
T-3 Energy Services* 1,980 69
--------------
Total Oil Field Machinery & Equipment 727
- ---------------------------------------------------------------------
Oil Refining & Marketing - 0.1%
Tesoro 6,100 304
--------------
Total Oil Refining & Marketing 304
- ---------------------------------------------------------------------
56
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Oil-Field Services - 1.0%
Hanover Compressor* 3,495 $ 83
Helix Energy Solutions Group* 7,700 300
Hercules Offshore* 2,900 87
Key Energy Services* 7,150 109
North American Energy Partners* 4,400 76
Oceaneering International* 1,900 107
Schlumberger 12,130 1,149
Superior Energy Services* 3,300 133
Tetra Technologies* 3,250 91
W-H Energy Services* 3,875 248
Willbros Group* 2,200 69
--------------
Total Oil-Field Services 2,452
- ---------------------------------------------------------------------
Paper & Related Products - 0.3%
Abitibi Consolidated* 97,785 232
Bowater 4,120 81
Domtar* 29,275 279
MeadWestvaco 2,345 76
Neenah Paper 1,940 75
Smurfit-Stone Container* 4,505 53
--------------
Total Paper & Related Products 796
- ---------------------------------------------------------------------
Pharmacy Services - 0.2%
Medco Health Solutions* 4,563 371
Omnicare 2,390 79
--------------
Total Pharmacy Services 450
- ---------------------------------------------------------------------
Physical Practice Management - 0.1%
Pediatrix Medical Group* 5,700 308
--------------
Total Physical Practice Management 308
- ---------------------------------------------------------------------
Physical Therapy/Rehabilitation Centers - 0.1%
Psychiatric Solutions* 4,255 145
--------------
Total Physical Therapy/Rehabilitation Centers 145
- ---------------------------------------------------------------------
Pipelines - 0.5%
El Paso 23,740 395
Oneok 4,700 239
Questar 4,600 237
Spectra Energy 10,529 268
--------------
Total Pipelines 1,139
- ---------------------------------------------------------------------
Platinum - 0.0%
Stillwater Mining* 3,630 33
--------------
Total Platinum 33
- ---------------------------------------------------------------------
Power Conversion/Supply Equipment - 0.1%
Delta Electronics GDR 5,906 117
--------------
Total Power Conversion/Supply Equipment 117
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Printing-Commercial - 0.2%
RR Donnelley & Sons 10,935 $ 462
--------------
Total Printing-Commercial 462
- ---------------------------------------------------------------------
Private Corrections - 0.1%
Geo Group* 5,630 156
--------------
Total Private Corrections 156
- ---------------------------------------------------------------------
Property/Casualty Insurance - 0.7%
Arch Capital Group* 6,800 474
Chubb 371 19
Safeco 8,300 485
Travelers 4,060 206
WR Berkley 11,850 348
--------------
Total Property/Casualty Insurance 1,532
- ---------------------------------------------------------------------
Publishing-Books - 0.0%
Courier 2,100 79
Scholastic* 345 11
--------------
Total Publishing-Books 90
- ---------------------------------------------------------------------
Publishing-Newspapers - 0.1%
Gannett 3,512 175
--------------
Total Publishing-Newspapers 175
- ---------------------------------------------------------------------
Publishing-Periodicals - 0.0%
Playboy Enterprises, Cl B* 9,690 107
--------------
Total Publishing-Periodicals 107
- ---------------------------------------------------------------------
Quarrying - 0.0%
Vulcan Materials 70 7
--------------
Total Quarrying 7
- ---------------------------------------------------------------------
Radio - 0.1%
Radio One, Cl D* 13,550 82
XM Satellite Radio Holdings, Cl A* 4,680 54
--------------
Total Radio 136
- ---------------------------------------------------------------------
Real Estate Management/Services - 0.2%
CB Richard Ellis Group, Cl A* 12,172 425
--------------
Total Real Estate Management/Services 425
- ---------------------------------------------------------------------
Real Estate Operation/Development - 0.1%
Brookfield Properties 8,896 201
--------------
Total Real Estate Operation/Development 201
- ---------------------------------------------------------------------
Recreational Centers - 0.0%
Town Sports* 3,700 63
--------------
Total Recreational Centers 63
- ---------------------------------------------------------------------
57
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Reinsurance - 0.9%
Allied World Assurance Holdings 1,240 $ 59
Aspen Insurance Holdings 9,065 221
Berkshire Hathaway, Cl B* 91 328
Endurance Specialty Holdings 1,970 74
Everest Re Group 597 59
Montpelier Re Holdings 12,435 197
PartnerRe 6,950 494
Platinum Underwriters Holdings 3,280 109
RenaissanceRe Holdings 8,200 471
Validus Holdings* 6,720 151
--------------
Total Reinsurance 2,163
- ---------------------------------------------------------------------
REITs-Apartments - 0.6%
Archstone Smith Trust 5,559 319
AvalonBay Communities 3,343 361
BRE Properties 2,896 146
Camden Property Trust 2,723 150
Equity Residential 6,655 265
GMH Communities Trust 6,930 58
UDR 5,339 123
--------------
Total REITs-Apartments 1,422
- ---------------------------------------------------------------------
REITs-Diversified - 0.4%
Colonial Properties Trust 4,192 145
Digital Realty Trust 3,731 124
PS Business Parks 1,005 51
Vornado Realty Trust 5,018 537
--------------
Total REITs-Diversified 857
- ---------------------------------------------------------------------
REITs-Hotels - 0.3%
Ashford Hospitality Trust 4,735 48
DiamondRock Hospitality 5,903 100
Host Hotels & Resorts 17,385 367
LaSalle Hotel Properties 4,839 194
Strategic Hotels & Resorts 1,798 38
--------------
Total REITs Hotels 747
- ---------------------------------------------------------------------
REITs-Manufactured Homes - 0.0%
Equity Lifestyle Properties 1,775 80
--------------
Total REITs-Manufactured Homes 80
- ---------------------------------------------------------------------
REITs-Mortgage - 0.1%
Annaly Capital Management 3,690 53
CapitalSource 2,000 38
MFA Mortgage Investments 7,510 53
--------------
Total REITs-Mortgage 144
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
REITs-Office Property - 0.6%
Alexandria Real Estate Equities 445 $ 38
American Financial Realty Trust 7,620 67
BioMed Realty Trust 5,642 123
Boston Properties 6,108 577
Corporate Office Properties 5,080 192
Kilroy Realty 1,082 70
SL Green Realty 2,248 273
--------------
Total REITs-Office Property 1,340
- ---------------------------------------------------------------------
REITs-Regional Malls - 0.5%
General Growth Properties 6,440 309
Simon Property Group 8,497 735
Taubman Centers 4,470 215
--------------
Total REITs-Regional Malls 1,259
- ---------------------------------------------------------------------
REITs-Shopping Centers - 0.4%
Acadia Realty Trust 2,247 52
Developers Diversified Realty 915 44
Federal Realty Investment Trust 2,315 174
Kimco Realty 6,702 250
Kite Realty Group Trust 4,246 68
Regency Centers 3,807 247
Tanger Factory Outlet Centers 2,071 69
--------------
Total REITs-Shopping Centers 904
- ---------------------------------------------------------------------
REITs-Storage - 0.2%
Public Storage 4,971 348
--------------
Total REITs-Storage 348
- ---------------------------------------------------------------------
REITs-Warehouse/Industrial - 0.3%
AMB Property 4,417 236
Prologis 6,647 378
--------------
Total REITs-Warehouse/Industrial 614
- ---------------------------------------------------------------------
Rental Auto/Equipment - 0.1%
Avis Budget Group* 760 19
H&E Equipment Services* 6,410 174
RSC Holdings* 4,225 90
--------------
Total Rental Auto/Equipment 283
- ---------------------------------------------------------------------
Retail-Apparel/Shoe - 0.6%
Abercrombie & Fitch, Cl A 6,395 447
Aeropostale* 4,100 156
AnnTaylor Stores* 2,500 79
Childrens Place Retail Stores* 1,950 66
Footstar 8,040 36
Kenneth Cole Productions, Cl A 3,950 83
Men's Wearhouse 7,300 361
Syms 5,400 80
--------------
Total Retail-Apparel/Shoe 1,308
- ---------------------------------------------------------------------
58
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Retail-Automobile - 0.1%
Group 1 Automotive 2,930 $ 110
--------------
Total Retail-Automobile 110
- ---------------------------------------------------------------------
Retail-Building Products - 0.1%
Home Depot 4,100 152
--------------
Total Retail-Building Products 152
- ---------------------------------------------------------------------
Retail-Computer Equipment - 0.2%
GameStop, Cl A* 9,300 375
--------------
Total Retail-Computer Equipment 375
- ---------------------------------------------------------------------
Retail-Discount - 0.0%
Citi Trends* 1,602 53
Wal-Mart Stores 1,161 53
--------------
Total Retail-Discount 106
- ---------------------------------------------------------------------
Retail-Drug Store - 0.7%
CVS Caremark 28,975 1,020
Rite Aid* 57,900 319
Walgreen 8,320 367
--------------
Total Retail-Drug Store 1,706
- ---------------------------------------------------------------------
Retail-Jewelry - 0.0%
Movado Group 3,200 90
--------------
Total Retail-Jewelry 90
- ---------------------------------------------------------------------
Retail-Major Department Store - 0.2%
JC Penney 8,530 580
--------------
Total Retail-Major Department Store 580
- ---------------------------------------------------------------------
Retail-Office Supplies - 0.1%
Office Depot* 5,969 149
--------------
Total Retail-Office Supplies 149
- ---------------------------------------------------------------------
Retail-Pet Food & Supplies - 0.1%
etSmart 6,800 220
--------------
Total Retail-Pet Food & Supplies 220
- ---------------------------------------------------------------------
Retail-Propane Distribution - 0.1%
Star Gas Partners LP* 52,980 212
--------------
Total Retail-Propane Distribution 212
- ---------------------------------------------------------------------
Retail-Regional Department Store - 0.1%
Dillard-s, Cl A 10,500 314
Kohl-s* 213 13
--------------
Total Retail-Regional Department Store 327
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Retail-Restaurants - 0.2%
BJ-s Restaurants* 1,375 $ 28
Cheesecake Factory* 2,210 54
Starbucks* 16,960 452
--------------
Total Retail-Restaurants 534
- ---------------------------------------------------------------------
Retail-Sporting Goods - 0.1%
Dick-s Sporting Goods* 1,940 109
Zumiez* 1,433 53
--------------
Total Retail-Sporting Goods 162
- ---------------------------------------------------------------------
Retail-Video Rental - 0.0%
Blockbuster, Cl A* 6,070 26
--------------
Total Retail-Video Rental 26
- ---------------------------------------------------------------------
Retirement/Aged Care - 0.0%
Emeritus* 1,900 47
--------------
Total Retirement/Aged Care 47
- ---------------------------------------------------------------------
S&L/Thrifts Central US - 0.0%
Citizens First Bancorp 1,950 37
Franklin Bank* 3,000 32
--------------
Total S&L/Thrifts Central US 69
- ---------------------------------------------------------------------
S&L/Thrifts-Eastern US - 0.3%
Brookline Bancorp 11,370 117
Clifton Savings Bancorp 6,450 64
Dime Community Bancshares 6,600 74
Flushing Financial 5,200 78
Investors Bancorp* 6,400 77
KNBT Bancorp 4,250 56
NewAlliance Bancshares 6,050 82
Provident New York Bancorp 8,400 114
--------------
Total S&L/Thrifts-Eastern US 662
- ---------------------------------------------------------------------
S&L/Thrifts-Southern US - 0.0%
BankUnited Financial, Cl A 3,550 60
--------------
Total S&L/Thrifts-Southern US 60
- ---------------------------------------------------------------------
S&L/Thrifts-Western US - 0.3%
PFF Bancorp 3,350 56
Provident Financial Holdings 2,950 57
Washington Federal 21,225 478
Washington Mutual 4,010 151
--------------
Total S&L/Thrifts-Western US 742
- ---------------------------------------------------------------------
Schools - 0.2%
Capella Education* 1,925 86
ITT Educational Services* 1,955 207
Learning Tree International* 9,140 121
Strayer Education 740 112
--------------
Total Schools 526
- ---------------------------------------------------------------------
59
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Semiconductor Components-Integrated Circuits - 0.6%
Cirrus Logic* 9,000 $ 66
Cypress Semiconductor* 5,800 145
Integrated Device Technology* 5,700 93
Maxim Integrated Products 28,405 900
Powertech Technology GDR 18,800 178
--------------
Total Semiconductor Components-
Integrated Circuits 1,382
- ---------------------------------------------------------------------
Semiconductor Equipment - 0.1%
Brooks Automation* 3,770 66
Cabot Microelectronics* 1,070 46
Tessera Technologies* 2,290 94
Ultratech* 5,520 69
--------------
Total Semiconductor Equipment 275
- ---------------------------------------------------------------------
Specified Purpose Acquisition - 0.0%
Marathon Acquisition* 4,530 43
--------------
Total Specified Purpose Acquisition 43
- ---------------------------------------------------------------------
Steel Pipe & Tube - 0.1%
Mueller Water Products, Cl A 2,690 38
TMK GDR 144A 2,500 100
TMK GDR 1,100 44
--------------
Total Steel Pipe & Tube 182
- ---------------------------------------------------------------------
Steel-Producers - 0.2%
Nucor 4,228 212
Olympic Steel 1,050 28
United States Steel 2,358 232
--------------
Total Steel-Producers 472
- ---------------------------------------------------------------------
Steel-Specialty - 0.4%
Allegheny Technologies 8,115 851
--------------
Total Steel-Specialty 851
- ---------------------------------------------------------------------
Super-Regional Banks-US - 0.7%
Bank of America 11,638 552
Capital One Financial 11,090 785
Wells Fargo 9,536 322
--------------
Total Super-Regional Banks-US 1,659
- ---------------------------------------------------------------------
Telecommunications Equipment - 0.2%
CommScope* 869 47
Comtech Telecommunications* 2,200 96
OpNext* 3,103 38
Plantronics 5,155 144
Tollgrade Communications* 7,020 73
--------------
Total Telecommunications Equipment 398
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Telecommunications Equipment-Fiber Optics - 0.0%
JDS Uniphase* 3,555 $ 51
--------------
Total Telecommunications Equipment-Fiber Optics 51
- ---------------------------------------------------------------------
Telecommunications Services - 0.6%
Amdocs* 10,775 390
Cbeyond* 1,070 38
Embarq 6,300 389
MasTec* 8,000 109
Orbcomm* 5,653 87
RCN* 5,790 103
Time Warner Telecom, Cl A* 13,955 273
--------------
Total Telecommunications Services 1,389
- ---------------------------------------------------------------------
Telephone-Integrated - 0.8%
AT&T 24,439 957
General Communication, Cl A* 6,700 77
IDT, Cl B 7,540 75
Level 3 Communications* 13,275 69
Verizon Communications 15,380 656
--------------
Total Telephone-Integrated 1,834
- ---------------------------------------------------------------------
Television - 0.0%
Sinclair Broadcast Group, Cl A 3,790 49
--------------
Total Television 49
- ---------------------------------------------------------------------
Textile-Home Furnishings - 0.2%
Mohawk Industries* 4,400 396
--------------
Total Textile-Home Furnishings 396
- ---------------------------------------------------------------------
Therapeutics - 0.5%
Gilead Sciences* 23,870 889
ImClone Systems* 1,700 56
Medicines* 6,365 101
Theravance* 2,340 63
Warner Chilcott, Cl A* 3,520 63
--------------
Total Therapeutics 1,172
- ---------------------------------------------------------------------
Tobacco - 0.7%
Altria Group 10,391 691
Imperial Tobacco Group ADR 7,293 639
UST 6,021 322
--------------
Total Tobacco 1,652
- ---------------------------------------------------------------------
Tools-Hand Held - 0.2%
Stanley Works 7,108 393
--------------
Total Tools-Hand Held 393
- ---------------------------------------------------------------------
60
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Transactional Software - 0.1%
Innerworkings* 5,798 $ 78
VeriFone Holdings* 1,820 66
--------------
Total Transactional Software 144
- ---------------------------------------------------------------------
Transport-Air Freight - 0.0%
ABX Air* 6,580 48
--------------
Total Transport-Air Freight 48
- ---------------------------------------------------------------------
Transport-Equipment & Leasing - 0.1%
GATX 1,935 88
Genesis Lease ADR 4,830 124
Greenbrier 890 30
--------------
Total Transport-Equipment & Leasing 242
- ---------------------------------------------------------------------
Transport-Marine - 0.1%
Overseas Shipholding Group 3,900 303
--------------
Total Transport-Marine 303
- ---------------------------------------------------------------------
Transport-Rail - 0.5%
Burlington Northern Santa Fe 4,315 354
Canadian Pacific Railway 5,400 399
CSX 7,142 339
Union Pacific 17 2
--------------
Total Transport-Rail 1,094
- ---------------------------------------------------------------------
Transport-Services - 0.1%
FedEx 608 67
Ryder System 351 19
UTI Worldwide 5,270 133
--------------
Total Transport-Services 219
- ---------------------------------------------------------------------
Transport-Truck - 0.1%
Forward Air 2,150 73
Heartland Express 4,550 68
--------------
Total Transport-Truck 141
- ---------------------------------------------------------------------
Veterinary Diagnostics - 0.1%
VCA Antech* 3,020 119
--------------
Total Veterinary Diagnostics 119
- ---------------------------------------------------------------------
Vitamins & Nutrition Products - 0.1%
Herbalife 6,835 280
--------------
Total Vitamins & Nutrition Products 280
- ---------------------------------------------------------------------
Water - 0.0%
Consolidated Water 3,100 90
--------------
Total Water 90
- ---------------------------------------------------------------------
Web Hosting/Design - 0.1%
Equinix* 3,240 282
--------------
Total Web Hosting/Design 282
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Web Portals/ISP - 0.6%
Gigamedia* 5,398 $ 58
Google, Cl A* 2,594 1,323
Trizetto Group* 5,000 80
--------------
Total Web Portals/ISP 1,461
- ---------------------------------------------------------------------
Wireless Equipment - 1.1%
American Tower, Cl A* 32,575 1,357
Nokia ADR 12,958 371
Novatel Wireless* 3,750 81
Qualcomm 13,950 581
RF Micro Devices* 10,600 73
--------------
Total Wireless Equipment 2,463
- ---------------------------------------------------------------------
Wound, Burn & Skin Care - 0.0%
Obagi Medical Products* 1,541 26
--------------
Total Wound, Burn & Skin Care 26
--------------
Total Common Stock (Cost $126,497) 140,127
- ---------------------------------------------------------------------
Foreign Common Stock - 19.9%
Australia - 1.3%
BHP Billiton 29,416 936
Caltex Australia 2,545 53
Leighton Holdings 26,025 855
Minara Resources 6,291 33
Perilya 1,803 7
QBE Insurance Group 4,075 103
Sally Malay Mining* 13,039 41
Santos 41,901 469
Seven Network 2,749 26
Tattersall's 81,335 337
Zinifex 19,621 324
--------------
Total Australia 3,184
- ---------------------------------------------------------------------
Austria - 0.3%
Austrian Airlines* 4,306 52
Oesterreichische Post 981 43
Voestalpine 8,148 678
--------------
Total Austria 773
- ---------------------------------------------------------------------
Belgium - 0.4%
Belgacom 200 8
Colruyt* 113 24
Delhaize Group 3,866 360
Dexia 7,243 207
KBC Groep 2,422 315
--------------
Total Belgium 914
- ---------------------------------------------------------------------
Bermuda - 0.0%
Catlin Group 1,644 16
--------------
Total Bermuda 16
- ---------------------------------------------------------------------
61
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Brazil - 0.3%
Banco do Brasil 7,800 $ 123
Gafisa 9,600 152
Kroton Educacional* 4,900 111
Localiza Rent A Car 9,300 96
Porto Seguro 3,100 119
--------------
Total Brazil 601
- ---------------------------------------------------------------------
Canada - 0.3%
Canadian Imperial Bank of
Commerce 3,500 304
Husky Energy 1,000 40
Methanex 1,500 37
Rothmans 1,800 35
Sherritt International 5,500 84
Teck Cominco, Cl B 4,600 204
--------------
Total Canada 704
- ---------------------------------------------------------------------
China - 0.1%
Industrial & Commercial Bank of
China, Cl H 237,000 145
--------------
Total China 145
- ---------------------------------------------------------------------
Denmark - 0.1%
D/S Torm 500 20
Norden 1,650 138
Sanistal, Cl B 660 119
Topdanmark* 325 55
--------------
Total Denmark 332
- ---------------------------------------------------------------------
Finland - 0.2%
Outokumpu 12,649 392
Rautaruukki 600 39
--------------
Total Finland 431
- ---------------------------------------------------------------------
France - 1.7%
Air France-KLM 6,398 288
AXA 1,000 39
BNP Paribas 12,959 1,424
Business Objects* 5,692 256
Cap Gemini 7,426 488
Societe Generale 7,383 1,269
Vivendi 5,101 217
--------------
Total France 3,981
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Germany - 2.3%
Beiersdorf 1,905 $ 132
Deutsche Lufthansa 46,397 1,302
E.ON 3,960 623
Epcos 2,331 47
Kloeckner 425 32
MAN 6,935 1,002
Salzgitter 4,606 936
ThyssenKrupp 22,422 1,241
--------------
Total Germany 5,315
- ---------------------------------------------------------------------
Greece - 0.0%
Intracom Holdings 990 6
--------------
Total Greece 6
- ---------------------------------------------------------------------
Hong Kong - 0.6%
China Everbright International 309,000 121
China Mobile 12,500 144
China Resources Enterprise 48,000 190
CNOOC 112,000 133
Hongkong & Shanghai Hotels 39,500 66
Kingdee International Software
Group 118,000 116
Modern Beauty Salon Holdings 92,000 47
Regal Hotels International Holdings 222,000 18
Solomon Systech International 43,616 4
Sun Hung Kai Properties 33,000 420
Television Broadcasts 6,000 41
Vtech Holdings 3,326 30
--------------
Total Hong Kong 1,330
- ---------------------------------------------------------------------
Indonesia - 0.2%
Astra International 58,000 116
Bank Niaga 980,000 97
Bank Rakyat Indonesia 199,000 133
Ciputra Development* 1,096,000 107
Ramayana Lestari Sentosa 1,145,000 120
--------------
Total Indonesia 573
- ---------------------------------------------------------------------
Italy - 1.3%
Banco di Desio e della Brianza 1,083 12
Enel 71,429 737
ENI 42,734 1,496
Fiat 26,027 765
Indesit 2,833 62
--------------
Total Italy 3,072
- ---------------------------------------------------------------------
62
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Japan - 3.6%
Alpine Electronics 3,400 $ 53
Arcs 5,600 83
Brother Industries 11,000 158
Canon 18,300 967
Capcom 1,000 20
Central Japan Railway 57 590
Cosmo Oil 47,000 267
Create S D 1,700 39
Fujitsu Frontech 1,600 14
Hudson Soft* 1,600 22
IBJ Leasing 1,600 34
JFE Shoji Holdings 12,000 90
Kawasaki Kisen Kaisha 75 1
KDDI 75 498
Kobayashi Pharmaceutical 1,800 62
Kyoei Steel 1,300 36
Leopalace21 6,600 209
Mandom 1,300 32
Marubeni 93,000 892
Marudai Food 5,000 17
Matsushita Electric Works 6,000 75
Mitsubishi UFJ Lease & Finance 1,700 76
Mitsui OSK Lines 600 9
Nippon Mining Holdings 52,000 523
Nippon Oil 49,000 436
Nippon Steel 400 3
Nissan Shatai 20,000 124
NTT Data 89 373
Pacific Management 71 108
Saizeriya 900 14
Santen Pharmaceutical 35 1
Seiko Holdings 5,000 45
Sojitz 64,900 324
Sumco 17,900 919
Sumikin Bussan 3,000 13
Sumitomo 36,400 705
Sumitomo Metal Mining 3,000 73
Taihei Kogyo 6,000 40
Tokyo Electron 27 2
Tokyo Tekko 2,000 11
Toyota Boshoku 2,811 73
Yamaha Motor 6,100 172
Yamato Kogyo 2,300 109
Yamazen 2,000 14
--------------
Total Japan 8,326
- ---------------------------------------------------------------------
Luxembourg - 0.1%
Millicom International Cellular* 2,280 183
--------------
Total Luxembourg 183
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Malaysia - 0.2%
Genting 44,000 $ 101
SP Setia 56,000 138
WCT Engineering 69,333 131
--------------
Total Malaysia 370
- ---------------------------------------------------------------------
Mexico - 0.1%
GEO SA de CV, Ser B* 23,600 129
--------------
Total Mexico 129
- ---------------------------------------------------------------------
Netherlands - 2.1%
Aegon 18,601 337
Draka Holding 830 45
Heineken 6,680 423
Hunter Douglas 454 45
ING Groep 34,452 1,454
Koninklijke Ahold* 12,330 156
Nutreco Holding 119 9
Royal Dutch Shell, Cl A 48,936 1,900
Royal KPN 36,139 559
Unilever 708 22
--------------
Total Netherlands 4,950
- ---------------------------------------------------------------------
New Zealand - 0.1%
Contact Energy 8,411 59
Fletcher Building 17,666 168
--------------
Total New Zealand 227
- ---------------------------------------------------------------------
Norway - 0.0%
Cermaq 1,400 26
--------------
Total Norway 26
- ---------------------------------------------------------------------
Philippines - 0.2%
Ayala 16,080 186
Jollibee Foods 28,000 30
Union Bank of Philippines 112,900 149
Universal Robina 228,000 81
--------------
Total Philippines 446
- ---------------------------------------------------------------------
Russia - 0.2%
Pharmstandard* 2,200 133
Sberbank* 75,000 300
Unified Energy System* 107,000 146
--------------
Total Russia 579
- ---------------------------------------------------------------------
Singapore - 0.2%
Jardine Cycle & Carriage 9,000 94
Midas Holdings 85,000 70
Neptune Orient Lines 16,000 58
Singapore Airlines 9,000 114
Singapore Exchange 11,000 69
Singapore Telecommunications 64,600 147
--------------
Total Singapore 552
- ---------------------------------------------------------------------
63
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
South Africa - 0.3%
Anglo Platinum 611 $ 84
MTN Group 10,800 152
Standard Bank Group 12,400 176
Truworths International 39,000 198
--------------
Total South Africa 610
- ---------------------------------------------------------------------
South Korea - 0.3%
Daegu Bank 8,100 159
Hynix Semiconductor* 2,700 109
Lotte Shopping 270 105
Osstem Implant* 2,700 112
SSCP* 5,300 162
--------------
Total South Korea 647
- ---------------------------------------------------------------------
Sweden - 0.6%
Atlas Copco, Cl A 24,200 416
Electrolux, Cl B 13,100 328
JM 2,616 79
Skandinaviska Enskilda Banken, Cl A 600 20
Volvo, Cl B 32,366 595
--------------
Total Sweden 1,438
- ---------------------------------------------------------------------
Switzerland - 0.3%
Compagnie Financiere Richemont, Cl A 277 18
Credit Suisse Group 3,360 219
Geberit 100 16
Swiss Life Holding* 80 20
Zurich Financial Services 1,874 546
--------------
Total Switzerland 819
- ---------------------------------------------------------------------
Thailand - 0.2%
CP Seven Eleven 435,000 154
Home Product Center 609,000 96
Kasikornbank 87,000 209
--------------
Total Thailand 459
- ---------------------------------------------------------------------
United Kingdom - 2.3%
Antofagasta 69,910 1,019
Ashtead 34,661 100
AstraZeneca 9,968 515
Aviva 1,000 14
Barclays 11,605 163
BP 500 6
British Airways* 41,173 328
BT Group 217,388 1,378
CSR* 3,292 48
Dana Petroleum* 1,931 42
Eurocastle Investment 829 34
Halfords Group 1,900 15
HBOS 8,670 169
Imperial Tobacco Group 3,183 140
International Power 1,409 12
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Shares/Face
Description Amount (000) Value (000)
---------------------------------------------------------------------
United Kingdom - continued
Kazakhmys 4,890 $ 124
Kelda Group 1,076 18
Marks & Spencer Group 9,333 119
National Express Group 5,800 134
NETeller* 10,959 15
Next 704 27
Petrofac 3,786 33
Reckitt Benckiser 582 31
Resolution 31,736 422
Rio Tinto 500 36
Royal Bank of Scotland Group 27,192 324
Royal Dutch Shell, Cl B 3,447 136
SIG 1,600 42
Sportingbet* 10,641 11
Tate & Lyle 1,823 21
Thus Group* 12,959 43
--------------
Total United Kingdom 5,519
--------------
Total Foreign Common Stock (Cost $39,368) 46,657
---------------------------------------------------------------------
Foreign Preferred Stock - 0.0%
Germany - 0.0%
Porsche 57 104
--------------
Total Germany 104
--------------
Total Foreign Preferred Stock (Cost $43) 104
---------------------------------------------------------------------
Investment Company - 0.2%
Index Fund-Midcap - 0.1%
iShares Russell Midcap Value Index Fund 900 133
--------------
Total Index Fund-Midcap 133
Index Fund-Growth-Small Cap - 0.1%
iShares Russell 2000 Growth Index Fund 1,385 114
--------------
Total Index Fund-Growth-Small Cap 114
--------------
Total Investment Company (Cost $235) 247
---------------------------------------------------------------------
U.S. Government Agency Obligations - 5.5%
Federal Home Loan Mortgage
Corporation
6.500%, 04/01/35 $ 5 5
6.000%, 08/01/29 9 9
5.894%, 12/01/36 369 369
5.875%, 03/21/11 25 26
5.857%, 01/01/37 461 463
5.783%, 03/01/37 128 128
5.500%, 09/01/17 11 11
5.500%, 09/01/19 44 44
5.500%, 08/01/20 239 237
5.500%, 02/01/21 40 40
5.500%, 02/01/21 212 209
5.500%, 09/01/21 4 4
5.500%, 11/01/36 57 55
5.500%, 05/01/37 640 619
---------------------------------------------------------------------
64
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
U.S. Government Agency Obligations - continued
5.400%, 03/17/21 $ 245 $ 241
5.265%, 04/01/37 325 321
5.000%, 10/16/09 180 179
5.000%, 07/01/21 333 323
5.000%, 05/01/22 248 240
Federal Home Loan Mortgage
Corporation - Gold
6.500%, 08/01/37 25 25
6.000%, 07/01/37 280 278
6.000%, 08/01/37 1,060 1,051
5.500%, 04/01/22 115 113
5.500%, 06/01/22 174 172
5.500%, 12/01/36 147 142
5.000%, 11/01/21 61 59
Federal Home Loan Mortgage
Corporation MTN
5.250%, 02/24/11 225 224
Federal National Conventional Loan
6.000%, 02/01/37 298 296
5.500%, 11/01/36 691 667
5.500%, 12/01/36 1,011 977
Federal National Mortgage
Association
6.500%, 03/01/35 121 122
6.250%, 02/01/11 275 286
6.000%, 01/01/29 87 87
6.000%, 12/15/31 355 360
6.000%, 05/01/33 61 60
6.000%, 07/01/36 267 265
6.000%, 08/01/36 52 52
6.000%, 09/01/36 87 86
6.000%, 11/01/36 203 201
6.000%, 11/01/36 307 304
6.000%, 12/01/36 193 192
5.500%, 03/01/20 29 28
5.500%, 04/01/21 126 125
5.500%, 05/01/21 76 75
5.500%, 11/01/21 233 231
5.500%, 06/01/35 1 1
5.500%, 01/01/36 301 292
5.500%, 02/01/36 170 165
5.500%, 03/01/36 147 142
5.500%, 03/01/36 249 241
5.500%, 04/01/36 170 165
5.500%, 11/01/36 487 471
5.125%, 01/02/14 100 99
5.000%, 03/01/20 63 61
5.000%, 05/01/37 149 139
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
U.S. Government Agency Obligations - continued
Federal National Mortgage
Association TBA
6.500%, 08/15/37 $ 1,175 $ 1,187
--------------
Total U.S. Government Agency Obligations
(Cost $13,033) 12,964
- ---------------------------------------------------------------------
Corporate Bonds - 3.1%
Abbott Laboratories
5.600%, 05/15/11 185 186
Alcoa
5.900%, 02/01/27 30 28
American General Finance, Ser G
MTN
5.375%, 09/01/09 70 70
Ameriprise Financial
5.350%, 11/15/10 60 60
Amgen
4.000%, 11/18/09 35 34
AOL Time Warner
6.875%, 05/01/12 90 94
Apache
5.250%, 04/15/13 195 192
AT&T Wireless
8.750%, 03/01/31 40 50
7.875%, 03/01/11 65 70
Bank of America
5.375%, 08/15/11 180 179
5.375%, 06/15/14 30 29
Bank One
5.900%, 11/15/11 95 97
5.250%, 01/30/13 90 89
Canadian National Railway
5.800%, 06/01/16 100 100
Canadian National Resources
5.700%, 05/15/17 145 140
Caterpillar Financial Services
5.050%, 12/01/10 100 100
ChevronTexaco
3.500%, 09/17/07 150 150
Chubb
4.934%, 11/16/07 70 70
Cisco Systems
5.500%, 02/22/16 60 59
5.250%, 02/22/11 145 144
Citigroup
5.100%, 09/29/11 165 163
Columbus Southern Power, Ser C
5.500%, 03/01/13 65 64
- ---------------------------------------------------------------------
65
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Comcast
5.900%, 03/15/16 $ 105 $ 102
5.875%, 02/15/18 30 29
5.300%, 01/15/14 45 43
Conocophillips Canada
5.625%, 10/15/16 100 98
Costco Wholesale
5.500%, 03/15/17 55 54
CRH America
6.000%, 09/30/16 25 25
DaimlerChrysler
4.750%, 01/15/08 115 115
Deutsche Telekom
8.000%, 06/15/10 170 182
Dominion Resources, Ser A
5.600%, 11/15/16 25 24
ERP Operating LP
5.750%, 06/15/17 185 179
5.125%, 03/15/16 50 47
Federal Home Loan Bank
5.250%, 11/03/09 455 455
FedEx
5.500%, 08/15/09 55 55
FPL Group Capital
5.625%, 09/01/11 210 212
General Electric Capital, Ser A MTN
4.375%, 03/03/12 75 72
General Electric Capital, Ser G MTN
5.720%, 08/22/11 100 100
Hartford Financial Services Group
5.375%, 03/15/17 45 43
Hospira
6.050%, 03/30/17 30 30
HSBC Finance
6.375%, 10/15/11 145 146
International Lease Finance MTN
5.750%, 06/15/11 40 40
5.650%, 06/01/14 170 170
John Deere Capital
5.400%, 10/17/11 55 55
John Deere Capital, Ser D MTN
4.400%, 07/15/09 110 108
Masco
6.125%, 10/03/16 25 24
Metlife
5.375%, 12/15/12 50 50
5.000%, 06/15/15 85 81
Midamerican Energy Holdings
5.875%, 10/01/12 200 203
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Morgan Stanley
4.000%, 01/15/10 $ 85 $ 82
Nextel Communications, Ser E
6.875%, 10/31/13 105 101
Pepsico
5.150%, 05/15/12 60 60
PNC Funding
4.200%, 03/10/08 45 45
Prologis Trust
7.100%, 04/15/08 30 30
Prudential Financial, Ser B MTN
5.100%, 09/20/14 45 43
PSE&G Power
7.750%, 04/15/11 85 91
6.950%, 06/01/12 55 58
PSI Energy
6.050%, 06/15/16 40 40
SBC Communications
5.625%, 06/15/16 45 43
5.100%, 09/15/14 125 118
Schering-Plough
6.750%, 12/01/33 45 49
5.550%, 12/01/13 115 115
Shell International
5.625%, 06/27/11 100 102
Simon Property Group
5.750%, 12/01/15 35 35
Southern Power, Ser B
6.250%, 07/15/12 55 56
Telecom Italia Capital
4.000%, 11/15/08 180 176
Time Warner
6.500%, 11/15/36 30 28
Time Warner Cable 144A
5.850%, 05/01/17 55 53
Union Pacific
3.875%, 02/15/09 190 186
Virginia Electric Power, Ser A
6.000%, 05/15/37 30 29
Wachovia MTN
5.700%, 08/01/13 150 150
Wal-mart Stores
4.550%, 05/01/13 50 48
Washington Mutual Financial
6.875%, 05/15/11 40 42
Weatherford International 144A
6.350%, 06/15/17 275 281
5.950%, 06/15/12 45 46
Weyerhaeuser
5.950%, 11/01/08 15 15
- ---------------------------------------------------------------------
66
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Corporate Bonds - continued
Willis North America
6.200%, 03/28/17 $ 30 $ 30
Wyeth
5.500%, 02/01/14 70 69
Xcel Energy 144A
5.613%, 04/01/17 173 169
--------------
Total Corporate Bonds (Cost $7,381) 7,300
- ---------------------------------------------------------------------
Mortgage Related - 1.4%
Banc of America Mortgage CMO,
Ser 2004-8, Cl 3A1
5.250%, 10/25/19 443 431
Banc of America Mortgage CMO,
Ser D, Cl 2A4(A)
4.775%, 05/25/35 210 208
Bear Stearns CMBS,
Ser 2004-PWR5, Cl A4
4.831%, 07/11/42 155 149
Bear Stearns CMBS,
Ser 2005-T20, Cl A2(A)
5.127%, 10/12/42 175 173
Bear Stearns CMBS,
Ser 2006-PW13, Cl A4
5.540%, 09/11/41 220 214
Bear Stearns CMBS,
Ser 2006-T22, Cl A2(A)
5.466%, 04/12/38 215 215
Chase Mortgage Finance CMO,
Ser 2006-A1, Cl 2A2(A)
6.083%, 09/25/36 280 283
Chase Mortgage Finance CMO,
Ser 2006-A1, Cl 4A1(A)
6.053%, 09/25/36 206 204
Chase Mortgage Finance,
Ser 2007-A1, Cl 12A2
5.944%, 03/25/37 480 485
Citigroup CMO, Ser 2004-C2, Cl A3
4.380%, 10/15/41 260 250
JP Morgan Chase CMO,
Ser 2004-CBX, Cl A4
4.529%, 01/12/37 140 135
JP Morgan Chase CMO,
Ser 2005-LDP1, Cl A2
4.625%, 03/15/46 143 140
Prime Mortgage Trust CMO,
Ser 2005-2, Cl 1A3
5.250%, 07/25/20 292 285
Wells Fargo CMO,
Ser 2006-11, Cl A8
6.000%, 09/25/36 194 192
--------------
Total Mortgage Related (Cost $3,391) 3,364
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Foreign Bonds - 0.7%
Bundesrepublik, Ser 03 (EUR)
4.750%, 07/04/34 55 $ 78
Bundesrepublik, Ser 02 (EUR)
5.000%, 07/04/12 60 85
Bundesrepublik, Ser 04 (EUR)
3.750%, 01/04/15 63 83
Bundesrepublik, Ser 05 (EUR)
3.500%, 01/04/16 70 89
Canada (CAD)
5.750%, 06/01/33 70 78
5.250%, 06/01/13 86 84
Citigroup, Ser INTL (JPY)
2.400%, 10/31/25 5,000 40
Development Bank of Japan,
Ser INTL (JPY)
1.750%, 03/17/17 20,000 167
Netherlands Government (EUR)
4.250%, 07/15/13 60 82
Nykredit (DKK)
4.000%, 01/01/08 1,500 275
Swedish Goverment, Ser 3105 (SEK)
3.500%, 12/01/15 1,300 242
United Kingdom Gilt (GBP)
4.000%, 09/07/16 170 316
--------------
Total Foreign Bonds (Cost $1,558) 1,619
- ---------------------------------------------------------------------
U.S. Treasury Obligations - 5.6%
U.S. Treasury Bonds
7.500%, 11/15/16 $ 50 60
5.375%, 02/15/31 730 771
4.625%, 02/15/17 910 898
4.500%, 03/31/12 1,390 1,383
4.500%, 02/15/36 1,135 1,061
U.S. Treasury Notes
4.875%, 08/15/09 60 61
4.750%, 05/31/12 560 564
4.750%, 05/15/14 1,070 1,073
4.625%, 11/15/09 705 706
4.625%, 02/29/12 1,200 1,201
4.500%, 11/30/11 1,115 1,111
4.500%, 11/15/15 275 271
4.500%, 05/15/17 1,885 1,845
3.875%, 07/15/10 2,260 2,219
--------------
Total U.S. Treasury Obligations (Cost $13,243) 13,224
- ---------------------------------------------------------------------
67
OLD MUTUAL ASSET ALLOCATION
MODERATE GROWTH PORTFOLIO - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Warrants - 0.6%
Asian Paints 144A, expires
06/15/09* 8,200 $ 184
Bharat Heavy Electricals 144A,
expires 05/12/08* 4,300 185
Grasim Industries 144A, expires
05/22/09* 1,650 122
Infosys Technology 144A, expires
08/21/09* 4,700 231
IVRCL Infrastructures & Projects
144A, expires 11/17/08* 24,300 234
Nicholas Piramal India 144A, expires
10/26/09* 22,200 149
Taiwan Semiconductor 144A,
expires 02/01/12* 235 1
TXC 144A, expires 01/27/12* 63,000 144
Tianjin Port 144A, expires 08/04/09* 132,000 105
--------------
Total Warrants (Cost $1,103) 1,355
- ---------------------------------------------------------------------
Money Market Fund - 4.4%
Evergreen Select Money Market Fund,
Institutional Class, 5.22% (C) 10,299,428 10,299
--------------
Total Money Market Fund (Cost $10,299) 10,299
- ---------------------------------------------------------------------
Total Investments - 101.2% (Cost $216,151) 237,260
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net - (1.2%) (2,757)
- ---------------------------------------------------------------------
Total Net Assets - 100.0% $ 234,503
- ---------------------------------------------------------------------
As of July 31, 2007, the Fund had the following forward foreign
currency contracts outstanding:
Unrealized
Settlement Currency Currency Appreciation/
Date to Deliver to Receive (Depreciation)
----------- ------------------ ---------------- ----------------
9/12/2007 EUR (448,180) AUD 719,074 $ (1,575)
9/12/2007 GBP (92,186) AUD 223,859 3,108
9/12/2007 JPY (11,762,220) AUD 119,656 1,795
9/12/2007 USD (109,374) CAD 116,845 305
9/12/2007 USD (167,112) DKK 924,446 3,083
9/12/2007 AUD (980) EUR 592 (21)
9/12/2007 CAD (118,536) EUR 81,140 (103)
9/12/2007 DKK (1,212,096) EUR 162,624 (355)
9/12/2007 GBP (228,259) EUR 334,103 (5,617)
9/12/2007 SEK (1,197,011) EUR 128,000 (2,690)
9/12/2007 USD (4,600,562) EUR 3,415,550 78,797
9/12/2007 USD (533,791) GBP 270,672 15,646
9/12/2007 EUR (776,779) JPY 126,319,760 8,557
9/12/2007 USD (670,879) JPY 80,579,285 13,431
9/12/2007 EUR (108,874) NOK 884,818 2,837
9/12/2007 USD (83,700) NOK 505,866 3,199
9/12/2007 JPY (7,721,866) NZD 85,504 (68)
9/12/2007 EUR (189,205) SEK 1,754,422 1,751
9/12/2007 JPY (47,198,007) SEK 2,675,624 (1,349)
9/12/2007 AUD (38,303) USD 31,332 (1,218)
9/12/2007 EUR (59,337) USD 80,117 (1,174)
9/12/2007 NOK (235,000) USD 40,352 14
9/12/2007 SEK (1,747,301) USD 250,084 (9,822)
--------
$108,531
--------
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
68
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Strategic Asset Allocation Consultant: Ibbotson Associates Advisors, LLC
Performance Highlights
o For the one-year period ended July 31, 2007, the Fund's Class A shares
gained 18.76% at net asset value, while the S&P 1500 Index returned 16.10%.
o During the one-year period, the Fund's absolute gains were impacted
positively by Clay Finlay Inc.'s emerging markets mandate, Acadian Asset
Management, Inc.'s international equity mandate and Copper Rock Capital
Partners, LLC's small-cap growth strategy.
o Thompson, Siegel & Walmsley LLC's small-cap value mandate and Heitman Real
Estate Securities LLC's REIT mandate detracted from absolute performance
while Liberty Ridge Capital, Inc.'s focused strategy contributed less than
other mandates to the Fund's overall gains.
o At the individual stock level, personal computer and related products
designer, manufacturer and marketer Apple; Latin American cellular
communication services provider NII Holdings and semiconductor manufacturer
Nvidia contributed to the Fund's absolute performance.
o On the other hand, agricultural commodity and product firm
Archer-Daniels-Midland, software systems provider Comverse Technology (no
longer a Fund holding) and specialty eatery Starbucks were among the Fund's
primary detractors.
Q. How did the Fund perform relative to its benchmark?
A. For the one-year period ended July 31, 2007, the Old Mutual Asset
Allocation Growth Portfolio's (the "Fund") Class A shares gained 18.76% at
net asset value, while the S&P 1500 Index returned 16.10%. Performance for
all share classes can be found on page 71.
Q. What investment environment did the Fund face during the past year?
A. Ibbotson Associates Advisors, LLC ("Ibbotson") analyzes 13 asset classes
for inclusion in the Fund. During the period, returns for all of these
asset classes exceeded Ibbotson's long-term expectations except real estate
and small-cap value. Growth stocks led value stocks; mid-caps outperformed
large- and small-cap stocks; a falling dollar helped international equities
post strong gains; and, while the yield curve remained flat compared to
historical standards, bond returns were relatively typical. Volatility, as
measured by standard deviations for all asset classes, was low compared to
historical standards.
Q. Which market factors influenced the Fund's relative performance?
A. The factors noted above combined to produce a healthy overall investment
environment for the Fund. Strong performance in emerging markets and
international equities impacted the Fund's performance positively during
the period while real estate negatively impacted returns. The exceptionally
high returns in equity real estate investment trusts ("REITs") over the
previous few years and resulting high valuations have been widely
publicized. Ibbotson's long-term target allocation to real estate in the
Fund is 3%, but Ibbotson lowered this allocation to 2% in April 2005. While
that reduction hurt the Fund's relative performance prior to February 2007
as REITs continued to perform exceptionally well, REITs have given back
some of their gains and the decision is starting to pay off.
Media attention has recently been focused on the conditions of the
sub-prime mortgage market. This is partially attributable to some highly
leveraged hedge funds (some of which belong to prominent Wall Street
firms), which became almost insolvent. The deep pockets of the owners
prevented a market-wide fire sale, but high-yield securities, which started
the year with terrific returns, declined in June and July.
While Ibbotson believes that value stocks are positioned to outperform
growth stocks over the long term, the firm has maintained equal weightings
between growth and value in the Fund since December 2005. The Fund was
positioned relatively well for the outperformance of growth stocks relative
to value stocks given Ibbotson's current position.
Q. How did portfolio composition affect Fund performance?
A. Twelve Fund mandates produced positive returns and two produced negative
returns. During the one-year period, the Fund's absolute gains were
impacted positively by Clay Finlay Inc.'s emerging markets mandate, Acadian
Asset Management, Inc.'s international equity mandate and Copper Rock
Capital Partners, LLC's small-cap growth strategy. Thompson, Siegel &
Walmsley LLC's small-cap value mandate and Heitman Real Estate Securities
LLC's REIT mandate detracted from absolute performance while Liberty Ridge
Capital, Inc.'s focused strategy contributed less than other mandates to
the Fund's overall gains. At the individual stock level, personal computer
and related products designer, manufacturer and marketer Apple; Latin
American cellular communication services provider NII Holdings and
semiconductor manufacturer Nvidia contributed to the Fund's absolute
performance. On the other hand, agricultural commodity and product firm
Archer-Daniels-Midland, software systems provider Comverse Technology (no
longer a Fund holding) and specialty eatery Starbucks were among the Fund's
primary detractors.
Asset Allocation Growth Portfolio
69
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Strategic Asset Allocation Consultant: Ibbotson Associates Advisors, LLC
Top Ten Holdings
as of July 31, 2007
Royal Dutch Shell, Cl A 1.0%
- ------------------------------------
NII Holdings 1.0%
- ------------------------------------
Apple 0.9%
- ------------------------------------
Nvidia 0.8%
- ------------------------------------
ENI 0.8%
- ------------------------------------
Cisco Systems 0.8%
- ------------------------------------
BT Group 0.7%
- ------------------------------------
Google, Cl A 0.7%
- ------------------------------------
Boeing 0.7%
- ------------------------------------
BNP Paribas 0.7%
- ------------------------------------
As a % of Total
Fund Investments 8.1%
- ------------------------------------
Q. What is the investment outlook?
A. Ibbotson notes that overall the U.S. economy appears to be in good shape
and expects it to continue to grow at a reasonable pace through 2007.
Ibbotson also believes that the U.S. stock market seems fairly priced at
present and that large-cap stocks appear more attractive than small-cap
stocks in the near term, from both a valuation and momentum perspective.
Ibbotson intends to maintain an overweight of U.S. large-cap stocks
relative to U.S. small-cap stocks.
Ibbotson notes that upward pressure on U.S. inflation and U.S. interest
rates will likely be seen over the next two to three years, affecting
intermediate- and long-maturity bond yields. While Ibbotson sees no clear
direction in the near future for long-term yields, it expects the yield
curve to become steeper in the long run. To that end, the strategic asset
allocation consultant will continue an overweight of the short-term end of
the yield curve and an underweight of the intermediate- and long-term ends
of the curve.
Asset Allocation Growth Portfolio
70
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------
1 Year Annualized
Inception Date Return Since Inception
- ------------------------------------------------------------------------------------------------------------------------------------
Class A with front-end load 9/30/04 11.97% 13.63%
Class A without load 9/30/04 18.76% 16.03%
Class C with deferred sales load 9/30/04 16.86% 15.16%
Class C without deferred sales load 9/30/04 17.86% 15.16%
Class Z 12/09/05 19.09% 14.73%
Institutional Class 9/30/04 19.00% 16.31%
S&P 1500 Index 9/30/04 16.10% 12.27%
- ------------------------------------------------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative index can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
2.22% and 1.60%; 2.93% and 2.35%; 1.93% and 1.35%; 1.68% and 1.35%,
respectively. Expenses for Class Z shares are based on estimated amounts.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
9/30/04 7/31/05 7/31/06 7/31/07
Asset Allocation Growth Portfolio, Institutional Class $10,000 $11,711 $12,892 $15,341
Asset Allocation Growth Portfolio, Class A $9,425 $11,019 $12,093 $14,362
Asset Allocation Growth Portfolio, Class C $10,000 $11,615 $12,657 $14,917
S&P 1500 Index $10,000 $11,359 $11,954 $13,879
Past performance is not a guarantee of future results. The graph above compares
an investment made in the Fund's Class A, C and Institutional shares on the
inception date of 9/30/04 to an investment made in an unmanaged securities index
on that date. The performance of the Fund's Class A shares shown in the line
graph takes into account the maximum initial sales charge. The Fund's
performance in this chart and the performance table assumes reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Common Stock 72.1%
Foreign Common Stock 24.1%
Cash Equivalent 2.5%
Warrants 0.7%
Foreign Preferred Stock 0.3%
Investment Companies 0.3%
100.0%
71
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 72.4%
Advanced Materials/Products - 0.1%
Hexcel* 6,400 $ 139
--------------
Total Advanced Materials/Products 139
- ---------------------------------------------------------------------
Advertising Sales - 0.1%
Focus Media Holding ADR* 2,600 107
--------------
Total Advertising Sales 107
- ---------------------------------------------------------------------
Advertising Services - 0.1%
inVentiv Health* 2,950 105
--------------
Total Advertising Services 105
- ---------------------------------------------------------------------
Aerospace/Defense - 1.6%
Aerovironment* 2,860 56
Boeing 12,479 1,291
General Dynamics 9,100 715
Rockwell Collins 11,460 787
Teledyne Technologies* 1,640 73
--------------
Total Aerospace/Defense 2,922
- ---------------------------------------------------------------------
Aerospace/Defense-Equipment - 0.4%
Alliant Techsystems* 2,650 263
B/E Aerospace* 8,981 364
DRS Technologies 1,436 75
Goodrich 700 44
--------------
Total Aerospace/Defense-Equipment 746
- ---------------------------------------------------------------------
Agricultural Chemicals - 0.8%
Agrium 4,400 184
CF Industries Holdings 1,500 86
Monsanto 17,000 1,096
--------------
Total Agricultural Chemicals 1,366
- ---------------------------------------------------------------------
Agricultural Operations - 0.2%
Archer-Daniels-Midland 9,704 326
Tejon Ranch* 1,710 68
--------------
Total Agricultural Operations 394
- ---------------------------------------------------------------------
Airlines - 0.1%
AMR* 6,400 158
Delta Air Lines* 1,250 22
Southwest Airlines 279 4
UAL* 1,165 52
US Airways Group* 880 27
--------------
Total Airlines 263
- ---------------------------------------------------------------------
Apparel Manufacturers - 0.0%
Carter's* 3,400 72
Gymboree* 280 12
--------------
Total Apparel Manufacturers 84
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Appliances - 0.0%
Whirlpool 587 $ 60
--------------
Total Appliances 60
- ---------------------------------------------------------------------
Applications Software - 0.5%
Citrix Systems* 1,555 56
Intuit* 1,725 50
Microsoft 24,600 713
Nuance Communications* 2,620 43
Red Hat* 2,610 54
Visual Sciences* 2,563 44
--------------
Total Applications Software 960
- ---------------------------------------------------------------------
Auction House/Art Dealer - 0.0%
Sotheby's 1,920 82
--------------
Total Auction House/Art Dealer 82
- ---------------------------------------------------------------------
Audio/Video Products - 0.0%
DTS* 1,295 27
--------------
Total Audio/Video Products 27
- ---------------------------------------------------------------------
Auto-Cars/Light Trucks - 0.2%
Ford Motor* 29,688 252
General Motors 5,458 177
--------------
Total Auto-Cars/Light Trucks 429
- ---------------------------------------------------------------------
Auto/Truck Parts & Equipment-Original - 0.0%
Amerigon* 2,229 36
--------------
Total Auto/Truck Parts & Equipment-Original 36
- ---------------------------------------------------------------------
Batteries/Battery Systems - 0.0%
EnerSys* 2,000 36
--------------
Total Batteries/Battery Systems 36
- ---------------------------------------------------------------------
Beverages-Non-Alcoholic - 0.2%
Coca-Cola 5,000 260
Coca-Cola Bottling 1,260 66
--------------
Total Beverages-Non-Alcoholic 326
- ---------------------------------------------------------------------
Brewery - 0.2%
Cia Cervecerias Unidas ADR 3,300 123
Molson Coors Brewing, Cl B 3,400 302
--------------
Total Brewery 425
- ---------------------------------------------------------------------
Broadcast Services/Programming - 0.0%
Clear Channel Communications 122 4
--------------
Total Broadcast Services/Programming 4
- ---------------------------------------------------------------------
Building & Construction-Miscellaneous - 0.1%
Orascom Construction GDR 850 120
--------------
Total Building & Construction-Miscellaneous 120
- ---------------------------------------------------------------------
72
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Building Products-Air & Heating - 0.1%
AAON 3,100 $ 93
--------------
Total Building Products-Air & Heating 93
- ---------------------------------------------------------------------
Building Products-Cement/Aggregate - 0.1%
Martin Marietta Materials 930 127
--------------
Total Building Products-Cement/Aggregate 127
- ---------------------------------------------------------------------
Building Products-Light Fixtures - 0.1%
Genlyte Group* 2,100 146
--------------
Total Building Products-Light Fixtures 146
- ---------------------------------------------------------------------
Building-Heavy Construction - 0.1%
Washington Group International* 2,250 181
--------------
Total Building-Heavy Construction 181
- ---------------------------------------------------------------------
Building-Mobile Home/Manufactured Housing - 0.0%
Williams Scotsman International* 580 16
--------------
Total Building-Mobile Home/Manufactured Housing 16
- ---------------------------------------------------------------------
Cable TV - 0.4%
Comcast, Cl A* 13,455 352
DIRECTV Group* 14,116 316
--------------
Total Cable TV 668
- ---------------------------------------------------------------------
Casino Hotels - 0.5%
Harrah's Entertainment 35 3
MGM Mirage* 10,995 804
--------------
Total Casino Hotels 807
- ---------------------------------------------------------------------
Casino Services - 0.0%
International Game Technology 2,250 79
--------------
Total Casino Services 79
- ---------------------------------------------------------------------
Cellular Telecommunications - 1.7%
Alltel 118 8
America Movil, Ser L ADR 2,620 157
MetroPCS Communications* 20,775 761
Millicom International Cellular 2,060 165
NII Holdings* 20,563 1,728
Tim Participacoes ADR 3,500 121
Turkcell Iletisim ADR 7,362 130
--------------
Total Cellular Telecommunications 3,070
- ---------------------------------------------------------------------
Chemicals-Diversified - 0.5%
Celanese, Ser A 4,400 165
E.I. du Pont de Nemours 12,890 602
Lyondell Chemical 1,095 49
Olin 1,455 31
--------------
Total Chemicals-Diversified 847
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Chemicals-Specialty - 0.3%
Hercules 5,320 $ 111
Lubrizol 4,200 263
Terra Industries* 6,650 163
--------------
Total Chemicals-Specialty 537
- ---------------------------------------------------------------------
Coal - 0.2%
Alpha Natural Resources* 2,340 42
Arch Coal 1,285 38
Consol Energy 3,500 146
Massey Energy 2,800 60
Peabody Energy 2,210 93
--------------
Total Coal 379
- ---------------------------------------------------------------------
Commercial Banks Non-US - 0.2%
Banco Itau Holding Financeira ADR* 5,100 233
Kazkommertsbank GDR* 2,600 47
--------------
Total Commercial Banks Non-US 280
- ---------------------------------------------------------------------
Commercial Banks-Central US - 0.3%
Bank Mutual 7,250 76
First Busey 2,800 54
First Midwest Bancorp 1,500 49
Heartland Financial USA 2,150 37
Irwin Financial 6,690 78
MB Financial 4,100 131
Oak Hill Financial 700 20
Old Second Bancorp 2,400 66
--------------
Total Commercial Banks-Central US 511
- ---------------------------------------------------------------------
Commercial Banks-Eastern US - 0.0%
Independent Bank 2,400 65
--------------
Total Commercial Banks-Eastern US 65
- ---------------------------------------------------------------------
Commercial Banks-Southern US - 0.1%
Colonial BancGroup 11,700 255
--------------
Total Commercial Banks-Southern US 255
- ---------------------------------------------------------------------
Commercial Banks-Western US - 0.2%
AmericanWest Bancorp 2,700 41
Centennial Bank Holdings* 13,100 86
Community Bancorp* 312 7
Glacier Bancorp 2,650 51
ITLA Capital 1,650 70
Silver State Bancorp* 2,950 55
Sterling Financial 2,500 57
SVB Financial Group* 900 47
--------------
Total Commercial Banks-Western US 414
- ---------------------------------------------------------------------
73
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Commercial Services - 0.3%
Alliance Data Systems* 610 $ 47
Arbitron 1,390 69
ChoicePoint* 1,370 53
eTelecare Global Solutions ADR* 7,000 107
ExlService Holdings* 3,068 52
PHH* 2,650 77
Steiner Leisure* 2,100 88
--------------
Total Commercial Services 493
- ---------------------------------------------------------------------
Commercial Services-Finance - 0.1%
Wright Express* 3,130 107
--------------
Total Commercial Services-Finance 107
- ---------------------------------------------------------------------
Communications Software - 0.1%
Avid Technology* 3,410 110
DivX* 3,050 41
--------------
Total Communications Software 151
- ---------------------------------------------------------------------
Computer Aided Design - 0.0%
Parametric Technology* 4,650 82
--------------
Total Computer Aided Design 82
- ---------------------------------------------------------------------
Computer Services - 0.1%
Cognizant Tech Solutions, Cl A* 1,210 98
Electronic Data Systems 1,135 31
Perot Systems, Cl A* 3,030 46
Syntel 1,232 44
--------------
Total Computer Services 219
- ---------------------------------------------------------------------
Computer Software - 0.1%
Double-Take Software* 4,196 64
Omniture* 3,090 71
--------------
Total Computer Software 135
- ---------------------------------------------------------------------
Computers - 2.3%
Apple* 12,800 1,686
Dell* 4,790 134
Hewlett-Packard 23,694 1,091
International Business Machines 4,851 537
Research In Motion* 2,990 640
Sun Microsystems* 3,230 16
--------------
Total Computers 4,104
- ---------------------------------------------------------------------
Computers-Integrated Systems - 0.1%
NCI, Cl A* 3,770 59
Radisys* 3,000 35
Riverbed Technology* 660 29
--------------
Total Computers-Integrated Systems 123
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Computers-Memory Devices - 0.5%
EMC* 44,765 $ 829
Xyratex* 3,300 73
--------------
Total Computers-Memory Devices 902
- ---------------------------------------------------------------------
Computers-Peripheral Equipment - 0.0%
Electronics for Imaging* 3,210 84
--------------
Total Computers-Peripheral Equipment 84
- ---------------------------------------------------------------------
Consulting Services - 0.3%
Advisory Board* 1,405 72
FTI Consulting* 4,988 205
Huron Consulting Group* 855 58
LECG* 3,590 50
MAXIMUS 1,890 79
--------------
Total Consulting Services 464
- ---------------------------------------------------------------------
Consumer Products-Miscellaneous - 0.0%
Kimberly-Clark 912 61
--------------
Total Consumer Products-Miscellaneous 61
- ---------------------------------------------------------------------
Containers-Metal/Glass - 0.2%
Owens-Illinois* 10,300 412
--------------
Total Containers-Metal/Glass 412
- ---------------------------------------------------------------------
Containers-Paper/Plastic - 0.1%
Pactiv* 62 2
Sealed Air 8,300 226
--------------
Total Containers-Paper/Plastic 228
- ---------------------------------------------------------------------
Cruise Lines - 0.3%
Carnival 10,983 487
--------------
Total Cruise Lines 487
- ---------------------------------------------------------------------
Data Processing/Management - 0.2%
Acxiom 2,680 68
Automatic Data Processing 4,440 206
Commvault Systems* 3,785 64
Fair Isaac 390 15
First Data 302 10
--------------
Total Data Processing/Management 363
- ---------------------------------------------------------------------
Dental Supplies & Equipment - 0.1%
Patterson* 745 27
Sirona Dental Systems* 2,400 85
--------------
Total Dental Supplies & Equipment 112
- ---------------------------------------------------------------------
Diagnostic Equipment - 0.1%
Gen-Probe* 1,390 88
--------------
Total Diagnostic Equipment 88
- ---------------------------------------------------------------------
74
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Diagnostic Kits - 0.1%
Inverness Medical Innovations* 2,400 $ 116
--------------
Total Diagnostic Kits 116
- ---------------------------------------------------------------------
Dialysis Centers - 0.0%
DaVita* 330 18
Dialysis Corp of America* 5,840 58
--------------
Total Dialysis Centers 76
- ---------------------------------------------------------------------
Direct Marketing - 0.0%
Valuevision Media, Cl A* 5,280 48
--------------
Total Direct Marketing 48
- ---------------------------------------------------------------------
Distribution/Wholesale - 0.1%
Bell Microproducts* 1,450 9
Fastenal 2,320 105
Owens & Minor 2,600 100
--------------
Total Distribution/Wholesale 214
- ---------------------------------------------------------------------
Diversified Manufacturing Operations - 1.8%
3M 6,400 569
Dover 6,980 356
General Electric 21,000 814
Honeywell International 9,721 559
Illinois Tool Works 11,746 647
Tyco International 7,286 344
--------------
Total Diversified Manufacturing Operations 3,289
- ---------------------------------------------------------------------
Diversified Minerals - 0.2%
Cia Vale do Rio Doce ADR 4,400 216
Oglebay Norton* 4,900 147
--------------
Total Diversified Minerals 363
- ---------------------------------------------------------------------
Diversified Operations - 0.0%
Resource America, Cl A 2,250 34
Walter Industries 1,690 42
--------------
Total Diversified Operations 76
- ---------------------------------------------------------------------
Drug Delivery Systems - 0.1%
Hospira* 2,500 97
--------------
Total Drug Delivery Systems 97
- ---------------------------------------------------------------------
E-Commerce/Products - 0.1%
Blue Nile* 700 53
Submarino GDR 144A 1,200 95
--------------
Total E-Commerce/Products 148
- ---------------------------------------------------------------------
E-Commerce/Services - 0.1%
Expedia* 1,473 39
Liberty Media - Interactive, Cl A* 2,345 49
Priceline.com* 880 56
--------------
Total E-Commerce/Services 144
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
E-Services/Consulting - 0.1%
GSI Commerce* 5,130 $ 114
Perficient* 5,267 104
--------------
Total E-Services/Consulting 218
- ---------------------------------------------------------------------
Educational Software - 0.1%
Blackboard* 1,690 75
SkillSoft ADR* 8,500 72
--------------
Total Educational Software 147
- ---------------------------------------------------------------------
Electric Products-Miscellaneous - 0.2%
Emerson Electric 8,048 379
--------------
Total Electric Products-Miscellaneous 379
- ---------------------------------------------------------------------
Electric-Integrated - 1.5%
Centerpoint Energy 20,400 336
CMS Energy 322 5
Dominion Resources 4,800 404
DTE Energy 6,800 315
Duke Energy 16,644 284
Edison International 4,052 214
Entergy 6,301 630
Otter Tail 2,800 83
Pike Electric* 4,000 79
PPL 7,300 344
TXU 213 14
--------------
Total Electric-Integrated 2,708
- ---------------------------------------------------------------------
Electronic Components-Miscellaneous - 0.3%
AU Optronics ADR 5,200 88
Celestica* 15,930 94
Flextronics International* 2,200 25
Hon Hai Precision GDR* 1,440 24
Hon Hai Precision GDR 144A 9,715 161
Tyco Electronics 3,664 131
--------------
Total Electronic Components-Miscellaneous 523
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - 1.9%
Broadcom, Cl A* 22,495 738
DSP Group* 10,035 179
Ikanos Communications* 8,410 60
International Rectifier* 540 20
Intersil, Cl A 3,150 92
Microchip Technology 1,660 60
Micron Technology* 1,670 20
Microsemi* 4,250 99
Netlogic Microsystems* 2,315 70
NVIDIA* 31,710 1,451
QLogic* 2,195 29
Samsung Electronics GDR 144A 990 326
Semtech* 1,095 18
Silicon Laboratories* 1,050 37
- ---------------------------------------------------------------------
75
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - continued
SiRF Technology Holdings* 3,150 $ 74
Texas Instruments 2,916 103
Volterra Semiconductor* 2,280 26
Zoran* 2,050 39
--------------
Total Electronic Components-Semiconductors 3,441
- ---------------------------------------------------------------------
Electronic Design Automation - 0.1%
Comtech Group* 4,855 69
Magma Design Automation* 3,210 47
Synplicity* 12,420 87
--------------
Total Electronic Design Automation 203
- ---------------------------------------------------------------------
Electronic Forms - 0.4%
Adobe Systems* 18,295 737
--------------
Total Electronic Forms 737
- ---------------------------------------------------------------------
Electronic Measuring Instruments - 0.2%
Agilent Technologies* 7,400 282
Itron* 1,280 102
--------------
Total Electronic Measuring Instruments 384
- ---------------------------------------------------------------------
Electronic Parts Distribution - 0.1%
Arrow Electronics* 5,700 218
--------------
Total Electronic Parts Distribution 218
- ---------------------------------------------------------------------
Electronic Security Devices - 0.0%
Taser International* 2,995 46
--------------
Total Electronic Security Devices 46
- ---------------------------------------------------------------------
Electronics-Military - 0.2%
EDO 2,250 74
L-3 Communications Holdings 2,900 283
--------------
Total Electronics-Military 357
- ---------------------------------------------------------------------
Energy-Alternate Sources - 0.1%
Covanta Holding* 8,700 198
Evergreen Solar* 3,870 32
--------------
Total Energy-Alternate Sources 230
- ---------------------------------------------------------------------
Engineering/R&D Services - 0.5%
Fluor 2,039 236
McDermott International* 7,360 610
Shaw Group* 2,500 133
--------------
Total Engineering/R&D Services 979
- ---------------------------------------------------------------------
Engines-Internal Combustion - 0.3%
Cummins 5,235 621
--------------
Total Engines-Internal Combustion 621
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Enterprise Software/Services - 0.9%
BMC Software* 11,400 $ 328
Concur Technologies* 2,014 48
Informatica* 3,300 46
Lawson Software* 7,170 68
Open Text* 3,850 72
Oracle* 31,095 595
PROS Holdings* 2,900 36
Sybase* 10,900 259
Taleo, Cl A* 1,448 31
Ultimate Software Group* 2,325 63
--------------
Total Enterprise Software/Services 1,546
- ---------------------------------------------------------------------
Entertainment Software - 0.2%
Activision* 7,402 127
Electronic Arts* 1,400 68
THQ* 2,485 71
--------------
Total Entertainment Software 266
- ---------------------------------------------------------------------
Environmental Consulting & Engineering - 0.1%
Tetra Tech* 4,900 103
--------------
Total Environmental Consulting & Engineering 103
- ---------------------------------------------------------------------
Fiduciary Banks - 0.4%
Bank of New York Mellon 9,973 425
Northern Trust 5,000 312
--------------
Total Fiduciary Banks 737
- ---------------------------------------------------------------------
Filtration/Separation Products - 0.2%
Clarcor 4,200 146
Pall 5,800 241
--------------
Total Filtration/Separation Products 387
- ---------------------------------------------------------------------
Finance-Consumer Loans - 0.4%
Encore Capital Group* 4,680 48
First Marblehead 1,825 60
Nelnet, Cl A 3,320 58
SLM 11,558 568
--------------
Total Finance-Consumer Loans 734
- ---------------------------------------------------------------------
Finance-Credit Card - 0.2%
American Express 5,000 293
Discover Financial Services* 2,719 62
--------------
Total Finance-Credit Card 355
- ---------------------------------------------------------------------
Finance-Investment Banker/Broker - 1.1%
Bear Stearns 2,100 255
Citigroup 13,214 615
Cowen* 3,100 44
Greenhill 505 29
- ---------------------------------------------------------------------
76
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Finance-Investment Banker/Broker - continued
JPMorgan Chase 15,655 $ 689
KBW* 300 8
MF Global* 800 20
Morgan Stanley 5,129 328
optionsXpress Holdings 2,120 53
--------------
Total Finance-Investment Banker/Broker 2,041
- ---------------------------------------------------------------------
Finance-Mortgage Loan/Banker - 0.0%
Fannie Mae 307 18
--------------
Total Finance-Mortgage Loan/Banker 18
- ---------------------------------------------------------------------
Finance-Other Services - 0.2%
Asset Acceptance Capital 10,580 147
GFI Group* 745 56
NASDAQ Stock Market* 3,100 95
--------------
Total Finance-Other Services 298
- ---------------------------------------------------------------------
Financial Guarantee Insurance - 0.1%
AMBAC Financial Group 780 53
MGIC Investment 3,579 138
--------------
Total Financial Guarantee Insurance 191
- ---------------------------------------------------------------------
Food-Dairy Products - 0.1%
Dean Foods 4,400 127
Wimm-Bill-Dann Foods ADR 1,450 136
--------------
Total Food-Dairy Products 263
- ---------------------------------------------------------------------
Food-Meat Products - 0.1%
Tyson Foods, Cl A 10,249 218
--------------
Total Food-Meat Products 218
- ---------------------------------------------------------------------
Food-Miscellaneous/Diversified - 0.4%
Kraft Foods, Cl A 8,940 293
Sara Lee 19,700 312
SunOpta* 3,850 43
--------------
Total Food-Miscellaneous/Diversified 648
- ---------------------------------------------------------------------
Food-Retail - 0.1%
Great Atlantic & Pacific Tea 3,300 96
X5 Retail Group GDR* 3,450 107
--------------
Total Food-Retail 203
- ---------------------------------------------------------------------
Food-Wholesale/Distribution - 0.0%
United Natural Foods* 2,090 57
--------------
Total Food-Wholesale/Distribution 57
- ---------------------------------------------------------------------
Footwear & Related Apparel - 0.0%
Heelys* 2,050 45
Skechers U.S.A., Cl A* 1,490 31
--------------
Total Footwear & Related Apparel 76
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Forestry - 0.1%
Plum Creek Timber 6,100 $ 237
--------------
Total Forestry 237
- ---------------------------------------------------------------------
Gambling (Non-Hotel) - 0.1%
Pinnacle Entertainment* 5,226 138
--------------
Total Gambling (Non-Hotel) 138
- ---------------------------------------------------------------------
Gas-Distribution - 0.0%
WGL Holdings 820 25
--------------
Total Gas-Distribution 25
- ---------------------------------------------------------------------
Golf - 0.0%
Callaway Golf 910 15
--------------
Total Golf 15
- ---------------------------------------------------------------------
Hazardous Waste Disposal - 0.1%
Stericycle* 3,730 179
--------------
Total Hazardous Waste Disposal 179
- ---------------------------------------------------------------------
Health Care Cost Containment - 0.2%
Hooper Holmes* 3,520 9
Mckesson 6,536 378
--------------
Total Health Care Cost Containment 387
- ---------------------------------------------------------------------
Hospital Beds/Equipment - 0.1%
Kinetic Concepts* 4,300 264
--------------
Total Hospital Beds/Equipment 264
- ---------------------------------------------------------------------
Hotels & Motels - 0.1%
Hilton Hotels 1,408 62
Lodgian* 3,030 39
Marriott International, Cl A 2,839 118
Wyndham Worldwide 1,220 41
--------------
Total Hotels & Motels 260
- ---------------------------------------------------------------------
Human Resources - 0.4%
Hewitt Associates, Cl A* 12,360 370
Hudson Highland Group* 2,770 46
Kenexa* 1,296 46
Manpower 2,750 217
Monster Worldwide* 2,290 89
--------------
Total Human Resources 768
- ---------------------------------------------------------------------
Import/Export - 0.0%
Castle Brands* 3,036 15
--------------
Total Import/Export 15
- ---------------------------------------------------------------------
77
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Independent Power Producer - 0.0%
Calpine* 4,040 $ 11
Mirant* 290 11
Reliant Energy* 925 24
--------------
Total Independent Power Producer 46
- ---------------------------------------------------------------------
Industrial Audio & Video Products - 0.0%
SRS Labs* 4,155 48
--------------
Total Industrial Audio & Video Products 48
- ---------------------------------------------------------------------
Industrial Automation/Robot - 0.2%
Cognex 1,545 32
Intermec* 4,800 123
Rockwell Automation 2,400 168
--------------
Total Industrial Automation/Robot 323
- ---------------------------------------------------------------------
Industrial Gases - 0.7%
Air Products & Chemicals 230 20
Praxair 16,035 1,228
--------------
Total Industrial Gases 1,248
- ---------------------------------------------------------------------
Instruments-Controls - 0.1%
Watts Water Technologies, Cl A 2,500 87
--------------
Total Instruments-Controls 87
- ---------------------------------------------------------------------
Instruments-Scientific - 0.2%
PerkinElmer 13,100 365
--------------
Total Instruments-Scientific 365
- ---------------------------------------------------------------------
Insurance Brokers - 0.1%
Marsh & McLennan 8,600 237
--------------
Total Insurance Brokers 237
- ---------------------------------------------------------------------
Internet Application Software - 0.1%
Cryptologic 1,380 29
DealerTrack Holdings* 4,193 151
Interwoven* 3,700 52
Vocus* 1,177 33
--------------
Total Internet Application Software 265
- ---------------------------------------------------------------------
Internet Financial Services - 0.1%
Authorize.net Holdings* 4,405 76
Online Resources* 6,810 75
--------------
Total Internet Financial Services 151
- ---------------------------------------------------------------------
Internet Infrastructure Software - 0.2%
Akamai Technologies* 1,320 45
F5 Networks* 1,520 132
Opsware* 6,333 89
Radvision Limited* 1,540 26
--------------
Total Internet Infrastructure Software 292
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Internet Security - 0.1%
Checkfree* 955 $ 35
Ipass* 2,150 10
Symantec* 11,210 216
VeriSign* 66 2
--------------
Total Internet Security 263
- ---------------------------------------------------------------------
Investment Management/Advisory Services - 0.4%
Affiliated Managers Group* 1,365 154
Franklin Resources 3,380 431
Legg Mason 1,070 96
--------------
Total Investment Management/Advisory Services 681
- ---------------------------------------------------------------------
Lasers-Systems/Components - 0.1%
Electro Scientific Industries* 3,660 80
Newport* 4,700 62
--------------
Total Lasers-Systems/Components 142
- ---------------------------------------------------------------------
Life/Health Insurance - 0.2%
Cigna 6,600 341
--------------
Total Life/Health Insurance 341
- ---------------------------------------------------------------------
Linen Supply & Related Items - 0.0%
Cintas 955 35
--------------
Total Linen Supply & Related Items 35
- ---------------------------------------------------------------------
Machine Tools & Related Products - 0.2%
Kennametal 4,900 376
--------------
Total Machine Tools & Related Products 376
- ---------------------------------------------------------------------
Machinery-Construction & Mining - 0.6%
Bucyrus International, Cl A 1,100 70
Caterpillar 9,345 736
Terex* 2,500 216
--------------
Total Machinery-Construction & Mining 1,022
- ---------------------------------------------------------------------
Machinery-Electrical - 0.1%
Baldor Electric 1,650 75
Franklin Electric 2,450 114
--------------
Total Machinery-Electrical 189
- ---------------------------------------------------------------------
Machinery-General Industry - 0.2%
Manitowoc 1,880 146
Wabtec 3,700 151
--------------
Total Machinery-General Industry 297
- ---------------------------------------------------------------------
Machinery-Print Trade - 0.0%
Zebra Technologies, Cl A* 270 10
--------------
Total Machinery-Print Trade 10
- ---------------------------------------------------------------------
78
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical Imaging Systems - 0.0%
IRIS International* 2,148 $ 34
--------------
Total Medical Imaging Systems 34
- ---------------------------------------------------------------------
Medical Information Systems - 0.4%
Cerner* 12,215 646
IMS Health 1,555 43
--------------
Total Medical Information Systems 689
- ---------------------------------------------------------------------
Medical Instruments - 0.4%
Abaxis* 2,093 38
Cambridge Heart* 3,980 15
Conceptus* 5,921 96
Medtronic 5,580 283
Micrus Endovascular* 2,067 49
Natus Medical* 7,090 108
St. Jude Medical* 815 35
Symmetry Medical* 6,280 94
--------------
Total Medical Instruments 718
- ---------------------------------------------------------------------
Medical Labs & Testing Services - 0.2%
Covance* 1,120 79
Laboratory Corp of America Holdings* 3,000 222
--------------
Total Medical Labs & Testing Services 301
- ---------------------------------------------------------------------
Medical Products - 0.6%
Baxter International 9,312 490
Covidien 4,544 186
Henry Schein* 2,370 129
Orthofix International* 1,270 55
PSS World Medical* 6,200 107
Syneron Medical* 1,610 38
Vital Signs 1,300 67
--------------
Total Medical Products 1,072
- ---------------------------------------------------------------------
Medical-Biomedical/Genetic - 0.7%
Cambrex 2,250 31
Celgene* 2,240 136
Genzyme* 10,560 666
Integra LifeSciences Holdings* 2,150 107
Invitrogen* 535 38
Keryx Biopharmaceuticals* 4,830 42
Lifecell* 2,955 91
Martek Biosciences* 2,670 68
Orchid Cellmark* 2,470 12
PDL BioPharma* 2,986 70
--------------
Total Medical-Biomedical/Genetic 1,261
- ---------------------------------------------------------------------
Medical-Drugs - 2.3%
Angiotech Pharmaceuticals* 24,405 169
Aspreva Pharmaceuticals* 2,680 46
Axcan Pharma* 4,400 81
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical-Drugs - continued
Bristol-Myers Squibb 19,059 $ 542
Cephalon* 7,295 548
Indevus Pharmaceuticals* 6,205 44
Medicis Pharmaceutical, Cl A 1,220 35
Pfizer 41,778 982
Santarus* 9,495 46
Schering-Plough 33,610 959
Valeant Pharmaceuticals International 3,980 62
Wyeth 13,126 637
--------------
Total Medical-Drugs 4,151
- ---------------------------------------------------------------------
Medical-Generic Drugs - 0.0%
Perrigo 2,890 54
--------------
Total Medical-Generic Drugs 54
- ---------------------------------------------------------------------
Medical-HMO - 0.4%
Humana* 1,277 82
WellPoint* 9,256 695
--------------
Total Medical-HMO 777
- ---------------------------------------------------------------------
Medical-Hospitals - 0.1%
Universal Health Services, Cl B 4,400 231
--------------
Total Medical-Hospitals 231
- ---------------------------------------------------------------------
Medical-Nursing Homes - 0.1%
Assisted Living Concepts, Cl A* 7,200 65
Skilled Healthcare Group, Cl A* 2,690 37
--------------
Total Medical-Nursing Homes 102
- ---------------------------------------------------------------------
Medical-Outpatient/Home Medical - 0.1%
Lincare Holdings* 1,865 66
Radiation Therapy Services* 4,980 141
--------------
Total Medical-Outpatient/Home Medical 207
- ---------------------------------------------------------------------
Medical-Wholesale Drug Distributors - 0.4%
AmerisourceBergen 5,200 245
Cardinal Health 5,854 385
--------------
Total Medical-Wholesale Drug Distributors 630
- ---------------------------------------------------------------------
Metal Processors & Fabricators - 0.8%
CIRCOR International 2,300 92
Commercial Metals 7,000 216
Haynes International* 2,070 186
Ladish* 4,589 222
Precision Castparts 1,860 255
Sterlite Industries ADR* 23,925 389
--------------
Total Metal Processors & Fabricators 1,360
- ---------------------------------------------------------------------
Metal Products-Distributors - 0.1%
AM Castle 4,300 142
--------------
Total Metal Products-Distributors 142
- ---------------------------------------------------------------------
79
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Metal-Aluminum - 0.1%
Alcoa 2,580 $ 99
--------------
Total Metal-Aluminum 99
- ---------------------------------------------------------------------
Metal-Copper - 0.0%
Taseko Mines* 8,200 39
--------------
Total Metal-Copper 39
- ---------------------------------------------------------------------
Miscellaneous Manufacturing - 0.0%
Trimas* 6,180 73
--------------
Total Miscellaneous Manufacturing 73
- ---------------------------------------------------------------------
Motion Pictures & Services - 0.0%
Macrovision* 900 21
--------------
Total Motion Pictures & Services 21
- ---------------------------------------------------------------------
Multi-Line Insurance - 1.7%
ACE 35 2
Allstate 7,725 411
American International Group 8,500 545
Cincinnati Financial 7,800 306
Hartford Financial Services Group 8,751 804
Loews 8,401 398
XL Capital, Cl A 7,363 573
--------------
Total Multi-Line Insurance 3,039
- ---------------------------------------------------------------------
Multimedia - 0.1%
Entravision Communications, Cl A* 2,580 24
Gemstar-TV Guide International* 8,400 48
Walt Disney 820 27
--------------
Total Multimedia 99
- ---------------------------------------------------------------------
Networking Products - 1.0%
Anixter International* 1,300 108
Atheros Communications* 1,540 43
Cisco Systems* 46,945 1,357
Foundry Networks* 1,030 18
Juniper Networks* 4,420 132
Switch & Data Facilities* 3,959 63
--------------
Total Networking Products 1,721
- ---------------------------------------------------------------------
Non-Ferrous Metals - 0.3%
Cameco 14,805 604
--------------
Total Non-Ferrous Metals 604
- ---------------------------------------------------------------------
Non-Hazardous Waste Disposal - 0.3%
Allied Waste Industries* 20,795 268
Waste Management 4,600 175
--------------
Total Non-Hazardous Waste Disposal 443
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Office Automation & Equipment - 0.1%
Pitney Bowes 2,385 $ 110
--------------
Total Office Automation & Equipment 110
- ---------------------------------------------------------------------
Office Supplies & Forms - 0.2%
Avery Dennison 4,300 264
--------------
Total Office Supplies & Forms 264
- ---------------------------------------------------------------------
Oil & Gas Drilling - 0.2%
Atlas America 3,075 149
Diamond Offshore Drilling 1,160 120
Patterson-UTI Energy 4,170 95
Pride International* 1,070 38
Rowan 650 27
--------------
Total Oil & Gas Drilling 429
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - 1.8%
Arena Resources* 1,040 57
ATP Oil & Gas* 1,550 70
Cabot Oil & Gas 2,700 92
Denbury Resources* 1,810 72
EnCana 4,800 293
Forest Oil* 2,600 105
Gazprom ADR 2,250 96
Goodrich Petroleum* 2,300 69
Harvest Natural Resources* 8,030 90
Murphy Oil 2,100 130
Newfield Exploration* 4,700 226
NovaTek GDR* 600 32
Occidental Petroleum 13,274 753
Parallel Petroleum* 2,450 50
PetroHawk Energy* 6,200 93
Southwestern Energy* 18,870 767
Stone Energy* 2,310 75
Ultra Petroleum* 1,370 76
--------------
Total Oil Companies-Exploration & Production 3,146
- ---------------------------------------------------------------------
Oil Companies-Integrated - 1.7%
BP ADR* 3,100 215
Chevron 2,999 256
ConocoPhillips 9,847 796
Exxon Mobil 8,848 753
Hess 3,550 217
LUKOIL ADR 1,500 121
Marathon Oil 5,469 302
Petroleo Brasileiro ADR 5,600 364
--------------
Total Oil Companies-Integrated 3,024
- ---------------------------------------------------------------------
80
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Oil Field Machinery & Equipment - 0.3%
Dresser-Rand Group* 2,655 $ 98
Grant Prideco* 2,210 124
National Oilwell Varco* 1,840 221
T-3 Energy Services* 1,990 69
--------------
Total Oil Field Machinery & Equipment 512
- ---------------------------------------------------------------------
Oil Refining & Marketing - 0.1%
Tesoro 3,700 184
--------------
Total Oil Refining & Marketing 184
- ---------------------------------------------------------------------
Oil-Field Services - 1.3%
Hanover Compressor* 2,045 49
Helix Energy Solutions Group* 5,040 196
Hercules Offshore* 2,850 86
Key Energy Services* 5,100 78
North American Energy Partners* 4,400 76
Oceaneering International* 1,900 107
Schlumberger 11,765 1,114
Superior Energy Services* 3,350 135
Tetra Technologies* 3,200 89
W-H Energy Services* 3,420 219
Willbros Group* 2,200 69
--------------
Total Oil-Field Services 2,218
- ---------------------------------------------------------------------
Paper & Related Products - 0.3%
Abitibi-Consolidated 65,175 154
Bowater 2,740 54
Domtar* 20,325 193
MeadWestvaco 1,400 46
Neenah Paper 1,315 51
Smurfit-Stone Container* 2,680 32
--------------
Total Paper & Related Products 530
- ---------------------------------------------------------------------
Pharmacy Services - 0.2%
Medco Health Solutions* 3,721 302
Omnicare 1,400 47
--------------
Total Pharmacy Services 349
- ---------------------------------------------------------------------
Physical Practice Management - 0.1%
Pediatrix Medical Group* 4,000 216
--------------
Total Physical Practice Management 216
- ---------------------------------------------------------------------
Physical Therapy/Rehabilitation Centers - 0.1%
Psychiatric Solutions* 4,350 148
--------------
Total Physical Therapy/Rehabilitation Centers 148
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Pipelines - 0.6%
El Paso 20,740 $ 345
Oneok 3,300 167
Questar 3,200 165
Spectra Energy* 12,872 328
--------------
Total Pipelines 1,005
- ---------------------------------------------------------------------
Platinum - 0.0%
Stillwater Mining* 2,140 19
--------------
Total Platinum 19
- ---------------------------------------------------------------------
Power Conversion/Supply Equipment - 0.1%
Delta Electronics GDR 5,271 104
--------------
Total Power Conversion/Supply Equipment 104
- ---------------------------------------------------------------------
Printing-Commercial - 0.2%
RR Donnelley & Sons 7,355 311
--------------
Total Printing-Commercial 311
- ---------------------------------------------------------------------
Private Corrections - 0.1%
Geo Group* 5,540 153
--------------
Total Private Corrections 153
- ---------------------------------------------------------------------
Property/Casualty Insurance - 0.6%
Arch Capital Group* 4,800 334
Safeco 4,950 290
Travelers 3,930 200
WR Berkley 8,850 260
--------------
Total Property/Casualty Insurance 1,084
- ---------------------------------------------------------------------
Publishing-Books - 0.1%
Courier 2,200 83
Scholastic* 210 7
--------------
Total Publishing-Books 90
- ---------------------------------------------------------------------
Publishing-Newspapers - 0.1%
Gannett 4,321 216
--------------
Total Publishing-Newspapers 216
- ---------------------------------------------------------------------
Publishing-Periodicals - 0.0%
Playboy Enterprises, Cl B* 6,590 72
--------------
Total Publishing-Periodicals 72
- ---------------------------------------------------------------------
Quarrying - 0.0%
Vulcan Materials 69 7
--------------
Total Quarrying 7
- ---------------------------------------------------------------------
Radio - 0.1%
Radio One, Cl D* 9,290 57
XM Satellite Radio Holdings, Cl A* 3,230 37
--------------
Total Radio 94
- ---------------------------------------------------------------------
81
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Real Estate Management/Services - 0.2%
CB Richard Ellis Group, Cl A* 7,922 $ 277
--------------
Total Real Estate Management/Services 277
- ---------------------------------------------------------------------
Real Estate Operation/Development - 0.2%
Brookfield Properties 13,055 295
--------------
Total Real Estate Operation/Development 295
- ---------------------------------------------------------------------
Recreational Centers - 0.0%
Town Sports* 3,800 65
--------------
Total Recreational Centers 65
- ---------------------------------------------------------------------
Reinsurance - 0.9%
Allied World Assurance Holdings 720 34
Aspen Insurance Holdings 5,905 144
Berkshire Hathaway, Cl B* 88 317
Endurance Specialty Holdings 1,350 50
Everest Re Group 350 34
Montpelier Re Holdings 7,885 125
PartnerRe 5,050 359
Platinum Underwriters Holdings 2,260 75
RenaissanceRe Holdings 5,400 311
Validus Holdings* 4,290 97
--------------
Total Reinsurance 1,546
- ---------------------------------------------------------------------
REITs-Apartments - 1.2%
Archstone-Smith Trust 7,893 453
AvalonBay Communities 4,976 537
BRE Properties 4,227 214
Camden Property Trust 4,007 220
Equity Residential 10,000 398
GMH Communities Trust 10,317 87
UDR 7,917 183
--------------
Total REITs-Apartments 2,092
- ---------------------------------------------------------------------
REITs-Diversified - 0.7%
Colonial Properties Trust 6,328 219
Digital Realty Trust 5,897 195
PS Business Parks 1,073 55
Vornado Realty Trust 7,387 791
--------------
Total REITs-Diversified 1,260
- ---------------------------------------------------------------------
REITs-Hotels - 0.6%
Ashford Hospitality Trust 3,220 33
DiamondRock Hospitality 7,770 131
Host Hotels & Resorts 24,077 508
LaSalle Hotel Properties 6,474 259
Strategic Hotels & Resorts 1,439 31
--------------
Total REITs-Hotels 962
- ---------------------------------------------------------------------
REITs-Manufactured Homes - 0.1%
Equity Lifestyle Properties 2,616 119
--------------
Total REITs-Manufactured Homes 119
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
REITs-Mortgage - 0.1%
Annaly Capital Management 2,160 $ 31
CapitalSource 1,180 23
MFA Mortgage Investments 5,560 39
--------------
Total REITs-Mortgage 93
- ---------------------------------------------------------------------
REITs-Office Property - 1.0%
Alexandria Real Estate Equities 656 57
American Financial Realty Trust 5,170 45
BioMed Realty Trust 8,151 178
Boston Properties 7,092 670
Corporate Office Properties 7,330 276
Kilroy Realty 1,563 101
SL Green Realty 3,313 402
--------------
Total REITs-Office Property 1,729
- ---------------------------------------------------------------------
REITs-Regional Malls - 1.1%
General Growth Properties 9,587 460
Simon Property Group 12,365 1,070
Taubman Centers 6,522 314
--------------
Total REITs-Regional Malls 1,844
- ---------------------------------------------------------------------
REITs-Shopping Centers - 0.8%
Acadia Realty Trust 3,487 80
Developers Diversified Realty 1,341 64
Federal Realty Investment Trust 3,382 254
Kimco Realty 9,878 369
Kite Realty Group Trust 6,321 101
Regency Centers 5,562 361
Tanger Factory Outlet Centers 3,084 103
--------------
Total REITs-Shopping Centers 1,332
- ---------------------------------------------------------------------
REITs-Storage - 0.3%
Public Storage 7,316 513
--------------
Total REITs-Storage 513
- ---------------------------------------------------------------------
REITs-Warehouse/Industrial - 0.5%
AMB Property 6,512 347
Prologis 9,924 565
--------------
Total REITs-Warehouse/Industrial 912
- ---------------------------------------------------------------------
Rental Auto/Equipment - 0.1%
Avis Budget Group* 420 11
H&E Equipment Services* 6,080 165
RSC Holdings* 2,470 52
--------------
Total Rental Auto/Equipment 228
- ---------------------------------------------------------------------
Retail-Apparel/Shoe - 0.6%
Abercrombie & Fitch, Cl A 6,110 427
Aeropostale* 2,540 97
AnnTaylor Stores* 2,400 76
Childrens Place Retail Stores* 1,900 65
Footstar 5,340 24
- ---------------------------------------------------------------------
82
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Retail-Apparel/Shoe - continued
Kenneth Cole Productions, Cl A 2,650 $ 56
Men's Wearhouse 4,900 242
Syms* 3,820 56
--------------
Total Retail-Apparel/Shoe 1,043
- ---------------------------------------------------------------------
Retail-Automobile - 0.0%
Group 1 Automotive 2,030 76
--------------
Total Retail-Automobile 76
- ---------------------------------------------------------------------
Retail-Building Products - 0.1%
Home Depot 5,000 186
--------------
Total Retail-Building Products 186
- ---------------------------------------------------------------------
Retail-Computer Equipment - 0.1%
GameStop, Cl A* 5,470 221
--------------
Total Retail-Computer Equipment 221
- ---------------------------------------------------------------------
Retail-Consumer Electronics - 0.0%
Best Buy 49 2
--------------
Total Retail-Consumer Electronics 2
- ---------------------------------------------------------------------
Retail-Discount - 0.0%
Citi Trends* 1,580 52
Wal-Mart Stores 740 34
--------------
Total Retail-Discount 86
- ---------------------------------------------------------------------
Retail-Drug Store - 0.9%
CVS Caremark 28,251 994
Rite Aid* 42,200 232
Walgreen 8,070 357
--------------
Total Retail-Drug Store 1,583
- ---------------------------------------------------------------------
Retail-Jewelry - 0.1%
Movado Group 3,250 92
--------------
Total Retail-Jewelry 92
- ---------------------------------------------------------------------
Retail-Major Department Store - 0.3%
JC Penney 8,740 595
--------------
Total Retail-Major Department Store 595
- ---------------------------------------------------------------------
Retail-Office Supplies - 0.1%
Office Depot* 6,813 170
--------------
Total Retail-Office Supplies 170
- ---------------------------------------------------------------------
Retail-Pet Food & Supplies - 0.1%
PetSmart 4,290 139
--------------
Total Retail-Pet Food & Supplies 139
- ---------------------------------------------------------------------
Retail-Propane Distribution - 0.1%
Star Gas Partners LP* 36,530 146
--------------
Total Retail-Propane Distribution 146
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Retail-Regional Department Store - 0.1%
Dillard's, Cl A 7,000 $ 209
Kohl's* 32 2
--------------
Total Retail-Regional Department Store 211
- ---------------------------------------------------------------------
Retail-Restaurants - 0.3%
BJ's Restaurants* 1,350 27
Cheesecake Factory* 1,255 31
Starbucks* 16,455 439
--------------
Total Retail-Restaurants 497
- ---------------------------------------------------------------------
Retail-Sporting Goods - 0.1%
Dick's Sporting Goods* 1,370 77
Zumiez* 1,470 54
--------------
Total Retail-Sporting Goods 131
- ---------------------------------------------------------------------
Retail-Video Rental - 0.0%
Blockbuster, Cl A* 4,155 18
--------------
Total Retail-Video Rental 18
- ---------------------------------------------------------------------
Retirement/Aged Care - 0.0%
Emeritus* 1,800 44
--------------
Total Retirement/Aged Care 44
- ---------------------------------------------------------------------
S&L/Thrifts-Central US - 0.0%
Citizens First Bancorp 1,700 32
Franklin Bank* 2,600 28
--------------
Total S&L/Thrifts-Central US 60
- ---------------------------------------------------------------------
S&L/Thrifts-Eastern US - 0.3%
Brookline Bancorp 8,280 85
Clifton Savings Bancorp 6,300 63
Dime Community Bancshares 6,550 73
Flushing Financial 5,100 76
Investors Bancorp* 5,500 66
KNBT Bancorp 3,700 49
NewAlliance Bancshares 5,200 70
Provident New York Bancorp 8,250 113
--------------
Total S&L/Thrifts-Eastern US 595
- ---------------------------------------------------------------------
S&L/Thrifts-Southern US - 0.0%
BankUnited Financial, Cl A 3,450 58
--------------
Total S&L/Thrifts-Southern US 58
- ---------------------------------------------------------------------
S&L/Thrifts-Western US - 0.4%
PFF Bancorp 3,400 57
Provident Financial Holdings 2,550 49
Washington Federal 14,425 325
Washington Mutual 4,876 183
--------------
Total S&L/Thrifts-Western US 614
- ---------------------------------------------------------------------
83
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Schools - 0.2%
Capella Education* 1,885 $ 84
ITT Educational Services* 1,110 117
Learning Tree International* 6,320 84
Strayer Education 715 109
--------------
Total Schools 394
- ---------------------------------------------------------------------
Semiconductor Components-Integrated Circuits - 0.7%
Cirrus Logic* 8,900 65
Cypress Semiconductor* 5,350 134
Integrated Device Technology* 5,600 91
Maxim Integrated Products 25,885 820
Powertech Technology GDR 18,200 172
--------------
Total Semiconductor Components-Integrated Circuits 1,282
- ---------------------------------------------------------------------
Semiconductor Equipment - 0.1%
Brooks Automation* 2,580 45
Cabot Microelectronics* 750 32
Tessera Technologies* 2,240 92
Ultratech* 3,750 47
--------------
Total Semiconductor Equipment 216
- ---------------------------------------------------------------------
Specified Purpose Acquisition - 0.0%
Marathon Acquisition* 2,990 29
--------------
Total Specified Purpose Acquisition 29
- ---------------------------------------------------------------------
Steel Pipe & Tube - 0.1%
Mueller Water Products, Cl A 1,830 26
TMK GDR 1,400 56
TMK GDR 144A 2,000 80
--------------
Total Steel Pipe & Tube 162
- ---------------------------------------------------------------------
Steel-Producers - 0.3%
Nucor 3,383 170
Olympic Steel 1,100 29
United States Steel 2,834 278
--------------
Total Steel-Producers 477
- ---------------------------------------------------------------------
Steel-Specialty - 0.4%
Allegheny Technologies 7,060 741
--------------
Total Steel-Specialty 741
- ---------------------------------------------------------------------
Super-Regional Banks-US - 1.1%
Bank of America 13,679 648
Capital One Financial 12,309 871
Wells Fargo 11,746 397
--------------
Total Super-Regional Banks-US 1,916
- ---------------------------------------------------------------------
Telecommunications Equipment - 0.2%
CommScope* 854 47
Comtech Telecommunications* 2,100 91
OpNext* 3,032 37
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Telecommunications Equipment - continued
Plantronics 3,455 $ 97
Tollgrade Communications* 4,770 49
--------------
Total Telecommunications Equipment 321
- ---------------------------------------------------------------------
Telecommunications Equipment-Fiber Optics - 0.0%
JDS Uniphase* 2,080 30
--------------
Total Telecommunications Equipment-Fiber Optics 30
- ---------------------------------------------------------------------
Telecommunications Services - 0.6%
Amdocs* 6,360 230
Cbeyond* 1,074 38
Embarq 4,400 272
MasTec* 5,490 75
Orbcomm* 5,536 85
RCN* 3,880 69
Time Warner Telecom, Cl A* 11,280 221
--------------
Total Telecommunications Services 990
- ---------------------------------------------------------------------
Telephone-Integrated - 1.2%
AT&T 26,850 1,052
General Communication, Cl A* 6,600 76
IDT, Cl B* 5,550 55
Level 3 Communications* 7,890 41
Verizon Communications 18,867 804
--------------
Total Telephone-Integrated 2,028
- ---------------------------------------------------------------------
Television - 0.0%
Sinclair Broadcast Group, Cl A 2,595 34
--------------
Total Television 34
- ---------------------------------------------------------------------
Textile-Home Furnishings - 0.1%
Mohawk Industries* 2,600 234
--------------
Total Textile-Home Furnishings 234
- ---------------------------------------------------------------------
Therapeutics - 0.6%
Gilead Sciences* 23,175 863
ImClone Systems* 1,000 33
Medicines* 3,715 59
Theravance* 2,285 61
Warner Chilcott, Cl A* 2,015 36
--------------
Total Therapeutics 1,052
- ---------------------------------------------------------------------
Tobacco - 1.1%
Altria Group 11,863 788
Imperial Tobacco Group ADR 9,201 807
UST 7,456 399
--------------
Total Tobacco 1,994
- ---------------------------------------------------------------------
Tools-Hand Held - 0.3%
Stanley Works 8,756 484
--------------
Total Tools-Hand Held 484
- ---------------------------------------------------------------------
84
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Transactional Software - 0.1%
Innerworkings* 5,642 $ 75
VeriFone Holdings* 1,780 65
--------------
Total Transactional Software 140
- ---------------------------------------------------------------------
Transport-Air Freight - 0.0%
ABX Air* 4,550 33
--------------
Total Transport-Air Freight 33
- ---------------------------------------------------------------------
Transport-Equipment & Leasing - 0.1%
GATX 1,240 56
Genesis Lease ADR* 3,330 86
Greenbrier 600 20
--------------
Total Transport-Equipment & Leasing 162
- ---------------------------------------------------------------------
Transport-Marine - 0.1%
Overseas Shipholding Group 2,600 202
--------------
Total Transport-Marine 202
- ---------------------------------------------------------------------
Transport-Rail - 0.5%
Burlington Northern Santa Fe 5,311 436
Canadian Pacific Railway 3,800 281
CSX 4,741 225
Union Pacific 17 2
--------------
Total Transport-Rail 944
- ---------------------------------------------------------------------
Transport-Services - 0.1%
FedEx 613 68
Ryder System 280 15
UTI Worldwide 3,210 81
--------------
Total Transport-Services 164
- ---------------------------------------------------------------------
Transport-Truck - 0.1%
Forward Air 2,200 75
Heartland Express 3,950 59
--------------
Total Transport-Truck 134
- ---------------------------------------------------------------------
Veterinary Diagnostics - 0.0%
VCA Antech* 1,960 77
--------------
Total Veterinary Diagnostics 77
- ---------------------------------------------------------------------
Vitamins & Nutrition Products - 0.1%
Herbalife 4,650 191
--------------
Total Vitamins & Nutrition Products 191
- ---------------------------------------------------------------------
Water - 0.1%
Consolidated Water 3,050 88
--------------
Total Water 88
- ---------------------------------------------------------------------
Web Hosting/Design - 0.1%
Equinix* 2,305 200
--------------
Total Web Hosting/Design 200
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Web Portals/ISP - 0.9%
Gigamedia* 11,699 $ 126
Google, Cl A* 2,548 1,299
Trizetto Group* 5,100 82
--------------
Total Web Portals/ISP 1,507
- ---------------------------------------------------------------------
Wireless Equipment - 1.4%
American Tower, Cl A* 28,890 1,203
Nokia ADR 15,936 456
Novatel Wireless* 3,842 83
Qualcomm 13,705 571
RF Micro Devices* 10,800 75
--------------
Total Wireless Equipment 2,388
- ---------------------------------------------------------------------
Wound, Burn & Skin Care - 0.0%
Obagi Medical Products* 1,507 26
--------------
Total Wound, Burn & Skin Care 26
--------------
Total Common Stock (Cost $118,711) 128,956
- ---------------------------------------------------------------------
Foreign Common Stock - 24.2%
Australia - 1.7%
BHP Billiton 35,954 1,144
BlueScope Steel 340 3
Caltex Australia 5,091 107
Centennial Coal 8,233 23
Coles Group 1,147 14
Commander Communications 3,400 3
Leighton Holdings 11,660 383
Minara Resources 8,356 44
Perilya 5,984 24
Qantas Airways 139,281 675
Sally Malay Mining* 6,151 19
Santos 3,846 43
Straits Resources 5,607 20
Tattersall's 91,029 377
Telstra 6,848 27
WorleyParsons 4,683 134
Zinifex 2,204 36
--------------
Total Australia 3,076
- ---------------------------------------------------------------------
Austria - 0.2%
Andritz 1,200 81
Voestalpine 4,262 355
--------------
Total Austria 436
- ---------------------------------------------------------------------
Belgium - 1.0%
Belgacom 3,536 143
Delhaize Group 5,415 504
Dexia 1,429 41
Euronav 40 1
Fortis 25,042 987
KBC Groep 735 96
--------------
Total Belgium 1,772
- ---------------------------------------------------------------------
85
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Brazil - 0.3%
Banco do Brasil 7,200 $ 114
Gafisa 8,600 136
Kroton Educacional* 4,350 99
Localiza Rent A Car 8,200 84
Porto Seguro 2,800 107
--------------
Total Brazil 540
- ---------------------------------------------------------------------
Canada - 0.2%
Canadian Imperial Bank of Commerce 3,400 295
Methanex 600 15
Petro-Canada 200 11
Sherritt International 3,700 56
--------------
Total Canada 377
- ---------------------------------------------------------------------
China - 0.1%
Industrial & Commercial Bank of
China, Cl H 208,000 126
Sino Techfibre 24,000 25
--------------
Total China 151
- ---------------------------------------------------------------------
Denmark - 0.1%
Jyske Bank 800 63
Norden 1,640 137
Topdanmark 300 51
--------------
Total Denmark 251
- ---------------------------------------------------------------------
Finland - 0.4%
Metso 3,469 220
Outokumpu 13,272 411
Rautaruukki 600 39
--------------
Total Finland 670
- ---------------------------------------------------------------------
France - 2.6%
BNP Paribas 11,587 1,273
Bouygues 5,801 465
Business Objects* 3,169 143
Cap Gemini 5,095 335
CNP Assurances 1,154 151
Societe Generale 6,407 1,101
Total 3,909 308
Vivendi 20,545 872
--------------
Total France 4,648
- ---------------------------------------------------------------------
Germany - 2.6%
Allianz SE 2,547 542
Deutsche Bank 61 8
Deutsche Lufthansa 13,560 380
E.ON 5,081 800
MAN 6,297 910
Norddeutsche Affinerie 2,784 120
Salzgitter 3,242 659
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Germany - continued
ThyssenKrupp 18,351 $ 1,015
United Internet* 4,130 73
Volkswagen 268 48
--------------
Total Germany 4,555
- ---------------------------------------------------------------------
Hong Kong - 0.5%
China Everbright International 265,000 104
China Mobile 11,500 132
China Resources Enterprise 38,000 150
CNOOC 98,000 117
Kingdee International Software Group 104,000 103
Orient Overseas International 11,000 131
RC Group Holdings 6,260 11
Vtech Holdings 8,155 72
--------------
Total Hong Kong 820
- ---------------------------------------------------------------------
Indonesia - 0.3%
Astra International 51,000 102
Bank Niaga 959,000 95
Bank Rakyat Indonesia 160,000 107
Ciputra Development* 882,000 86
Ramayana Lestari Sentosa 976,000 102
--------------
Total Indonesia 492
- ---------------------------------------------------------------------
Italy - 1.1%
Enel 38,656 399
ENI 39,342 1,377
Fiat 9,391 276
--------------
Total Italy 2,052
- ---------------------------------------------------------------------
Japan - 4.4%
ABILIT 5,000 20
Alpine Electronics 3,200 50
Aozora Bank 30,000 110
Asahi Pretec 700 22
Brother Industries 13,000 187
Canon 9,600 507
Central Japan Railway 60 621
Cosmo Oil 73,000 415
Cosmos Initia 2,000 11
Eizo Nanao 100 3
Fujitsu General* 4,000 13
Hudson Soft* 1,300 18
JFE Holdings 8,700 597
JFE Shoji Holdings 10,000 75
KDDI 36 239
Kobayashi Pharmaceutical 900 31
Kohnan Shoji 900 12
Kyoei Steel 900 25
Leopalace21 4,300 136
Mandom 500 12
- ---------------------------------------------------------------------
86
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Japan - continued
Marubeni 51,000 $ 489
Mitsubishi UFJ Lease & Finance 1,900 84
Mori Seiki 3,300 108
Morinaga Milk Industry* 4,000 16
Nikon 1,000 32
Nippon Mining Holdings 33,500 337
Nippon Oil 34,000 303
Nippon Steel 600 5
Nissan Shatai 3,000 19
Nisshin Oillio Group 3,000 16
Nisshin Steel 34,000 149
NTT Data 99 415
Pacific Management 55 83
Santen Pharmaceutical 425 10
Seiko Epson 3,600 105
Seiko Holdings 9,000 80
Shinsho 3,000 11
Sumco 20,100 1,032
Sumikin Bussan 3,000 13
Sumitomo 32,900 637
Sumitomo Metal Mining 9,000 218
Tokyo Leasing 1,100 14
Tokyo Tekko 3,000 16
Toyota Auto Body 900 15
Toyota Boshoku 5,600 145
Yamaha Motor 6,000 169
Yamato Kogyo 4,200 200
Yamazen 2,000 14
--------------
Total Japan 7,839
- ---------------------------------------------------------------------
Malaysia - 0.2%
Genting 36,800 84
SP Setia 45,000 111
WCT Engineering 61,333 116
--------------
Total Malaysia 311
- ---------------------------------------------------------------------
Mexico - 0.1%
GEO SA de CV, Ser B* 21,600 118
--------------
Total Mexico 118
- ---------------------------------------------------------------------
Netherlands - 2.0%
Aegon 717 13
Draka Holding 801 44
Heineken 6,520 413
Hunter Douglas 1,240 122
ING Groep 26,744 1,129
OCE 2,303 53
Royal Dutch Shell, Cl A 46,398 1,802
--------------
Total Netherlands 3,576
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
New Zealand - 0.2%
Air New Zealand 127,093 $ 257
Fletcher Building 4,676 44
--------------
Total New Zealand 301
- ---------------------------------------------------------------------
Norway - 0.0%
Cermaq 1,900 35
--------------
Total Norway 35
- ---------------------------------------------------------------------
Philippines - 0.3%
Ayala 17,760 205
Jollibee Foods 36,000 39
Union Bank of Philippines 100,900 134
Universal Robina 204,000 72
--------------
Total Philippines 450
- ---------------------------------------------------------------------
Portugal - 0.0%
Energias de Portugal* 3,700 21
--------------
Total Portugal 21
- ---------------------------------------------------------------------
Russia - 0.4%
Novatek GDR* 2,500 133
Pharmstandard* 1,900 115
Sberbank 64,000 256
Unified Energy System 96,000 131
--------------
Total Russia 635
- ---------------------------------------------------------------------
Singapore - 0.7%
Jardine Cycle & Carriage 17,000 178
Neptune Orient Lines 52,000 189
SembCorp Industries 17,000 63
Singapore Airlines* 42,000 531
Singapore Exchange 24,000 151
Singapore Petroleum 19,000 81
Singapore Telecommunications 29,450 67
--------------
Total Singapore 1,260
- ---------------------------------------------------------------------
South Africa - 0.3%
Anglo Platinum 550 76
MTN Group 10,650 150
Standard Bank Group 9,750 138
Truworths International 32,700 166
--------------
Total South Africa 530
- ---------------------------------------------------------------------
South Korea - 0.3%
Daegu Bank 7,000 137
Hynix Semiconductor* 2,400 97
Lotte Shopping 240 94
Osstem Implant* 2,400 99
SSCP* 4,400 135
--------------
Total South Korea 562
- ---------------------------------------------------------------------
87
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Spain - 0.0%
Acerinox 712 $ 19
Telefonica 1,508 35
--------------
Total Spain 54
- ---------------------------------------------------------------------
Sweden - 0.5%
Boliden 700 16
Electrolux, Cl B 7,943 199
Skandinaviska Enskilda Banken, Cl A 13,200 451
Volvo, Cl B 14,650 269
--------------
Total Sweden 935
- ---------------------------------------------------------------------
Switzerland - 0.7%
Forbo Holding 58 35
Georg Fischer 91 74
Swatch Group 427 129
Zurich Financial Services 3,363 980
--------------
Total Switzerland 1,218
- ---------------------------------------------------------------------
Thailand - 0.2%
CP Seven Eleven 441,000 156
Home Product Center 654,000 103
Kasikornbank 76,000 183
--------------
Total Thailand 442
- ---------------------------------------------------------------------
United Kingdom - 2.8%
3i Group 4,032 87
Antofagasta 44,560 649
Ashtead 15,545 45
AstraZeneca 8,394 434
Aviva 1,242 17
Barclays 14,959 210
BHP Billiton 1,296 38
British Airways* 64,610 515
British American Tobacco 1,922 62
BT Group 207,084 1,313
Centrica 2,641 19
CSR* 5,612 82
De La Rue 4,838 73
easyJet* 8,297 84
HBOS 8,912 174
Inchcape* 10,896 101
International Power 2,348 20
Kazakhmys 4,833 123
Kelda Group 923 16
Kingston Communications 15,448 24
Michael Page International 24,404 268
National Express Group 800 18
NETeller 4,431 6
Next 1,416 54
Northgate Info Solutions 7,621 12
Royal Bank of Scotland Group 30,357 361
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
United Kingdom - continued
Royal Dutch Shell, Cl B 2,384 $ 94
Sportingbet 5,491 6
SVG Capital 2,456 42
Tesco 258 2
Thus Group* 4,549 16
--------------
Total United Kingdom 4,965
--------------
Total Foreign Common Stock (Cost $36,783) 43,092
- ---------------------------------------------------------------------
Foreign Preferred Stock - 0.2%
Germany - 0.2%
Porsche 255 463
--------------
Total Germany 463
--------------
Total Foreign Preferred Stock (Cost $288) 463
- ---------------------------------------------------------------------
Investment Company - 0.3%
Index Fund-Value-Mid Cap - 0.0%
iShares Russell Midcap Value Index
Fund 400 60
--------------
Total Index Fund-Value-Mid Cap 60
Index Fund-Growth-Small Cap - 0.1%
iShares Russell 2000
Growth Index Fund 2,350 192
--------------
Total Index Fund-Growth-Small Cap 192
Index Fund-Value-Small Cap - 0.2%
iShares S&P SmallCap 600
Value Index Fund 3,100 231
--------------
Total Index Fund-Value-Small Cap 231
--------------
Total Investment Company (Cost $496) 483
- ---------------------------------------------------------------------
Warrants - 0.7%
Asian Paints 144A, expires 06/15/09* 7,200 162
Bharat Heavy Electricals 144A,
expires 05/12/08* 3,800 164
Grasim Industries 144A,
expires 05/22/09* 1,450 106
Infosys Technology 144A,
expires 08/21/09* 4,150 204
IVRCL Infrastructures & Projects 144A,
expires 11/17/08* 21,300 205
Nicholas Piramal India 144A,
expires 10/26/09* 21,600 145
Taiwan Semiconductor 144A,
expires 02/01/12* 210 -
TXC 144A, expires 01/27/12* 56,500 129
Tianjin Port 144A,
expires 08/04/09* 116,000 95
--------------
Total Warrants (Cost $995) 1,210
- ---------------------------------------------------------------------
88
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Money Market Fund - 2.5%
Evergreen Select Money Market Fund,
Institutional Class, 5.22% (C) 4,441,782 $ 4,442
--------------
Total Money Market Fund (Cost $4,442) 4,442
- ---------------------------------------------------------------------
Total Investments - 100.3% (Cost $161,715) 178,646
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net - (0.3%) (511)
- ---------------------------------------------------------------------
Total Net Assets - 100.0% $ 178,135
- ---------------------------------------------------------------------
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
89
OLD MUTUAL ANALYTIC DEFENSIVE EQUITY FUND
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Sub-Advisor: Analytic Investors, Inc.
Performance Highlights
o For the one-year period ended July 31, 2007, the Old Mutual Analytic
Defensive Equity Fund underperformed its benchmark, the S&P 500 Index. The
Fund's Class A shares gained 9.99% at net asset value for the one-year
period, while the S&P 500 Index returned 16.13%.
o The equity portion of the Fund's portfolio contributed positively to
absolute and relative performance during the period.
o Options experienced losses over the period as a result of the strong equity
market environment.
o Global asset allocation negatively impacted Fund performance during the
period, primarily due to equities.
o Among the best performing stock holdings were long positions in Exxon
Mobil, Hewlett-Packard and International Business Machines.
o Detracting from performance were a short position in Discovery, a long
position in Archer-Daniels-Midland and a short position in Gentex.
Q. How did the Fund perform relative to its benchmark?
A. For the one-year period ended July 31, 2007, the Old Mutual Analytic
Defensive Equity Fund (the "Fund") underperformed its benchmark, the S&P
500 Index. The Fund's Class A shares gained 9.99% at net asset value for
the one-year period, while the S&P 500 Index returned 16.13%. Performance
for all share classes can be found on page 92.
Q. What investment environment did the Fund face during the past year?
A. U.S. equities, aided by high levels of consumer confidence, posted strong
performance during the period as demonstrated by the double-digit returns
generated by the S&P 500 Index. Despite this solid performance, the equity
market saw a sizable correction in February of 2007, after Asian markets
lost significant value. The impact of higher interest rates and lower home
prices weighed on the sub-prime mortgage market, which resumed its sell-off
during the period. Finally, the Federal Reserve Board held rates steady at
5.25% for the eighth consecutive meeting, noting that a sustained
moderation in inflation pressures had yet to be convincingly demonstrated.
Q. Which market factors influenced the Fund's relative performance?
A. The equity portion of the Fund's portfolio contributed positively to
absolute and relative performance during the period. Investor behavior -
the characteristics investors rewarded or penalized - was fairly consistent
with that seen over recent years. As a result, Analytic Investors, Inc.'s
("Analytic") investment process was effective. The Fund benefited from long
positions established based on certain valuation characteristics; such as
sales to price, cash flow to price and predicted earnings to price; and
growth characteristics such as projected earnings growth. In addition,
companies with sensitivity to low quality debt performed well during the
period. Short positions based on observed negative trends, such as
individual stocks' trading volume and high dividend yields, also added
value to Fund performance overall. Positions taken based on a company's
price momentum and return on assets negatively impacted results during the
period.
Options experienced losses over the period as a result of the strong equity
market environment.
Global asset allocation negatively impacted Fund performance during the
period, primarily due to equities. The equity portion of the global asset
allocation component negatively impacted performance as inflation and
economic competitiveness subtracted value during the year, whereas earnings
momentum performed well. Currencies also detracted from performance over
the period with the valuation factor posting a negative return, while
interest differential and relative strength factors performed well.
Q. How did portfolio composition affect Fund performance?
A. Among the best performing stock holdings was a long position in Exxon
Mobil, as the oil and natural gas company's stock rose steadily during the
period primarily due to record earnings, but also due in part to a
surprisingly rosy report on U.S. fuel supplies from the Energy Information
Administration. Also contributing positively to performance was a long
position in Hewlett-Packard, whose stock rose as the world's biggest
personal computer maker delivered strong second-quarter results, reporting
record cash flow from operations. Additionally, a long position in
technology services firm, International Business Machines, helped
performance as the company's stock soared after posting an increase in
quarterly profits and raising its 2007 earnings forecast.
Detracting from performance was a short position in Discovery. The
entertainment services company's stock soared after the announcement of a
corporate overhaul that included buying out the 25% stake Cox
Communications had in Discovery. Also detracting from performance was a
long position in Archer-Daniels-Midland, as the ethanol producer's stock
fell after analysts issued a gloomy forecast for the sector. Finally, a
short position in Gentex detracted from performance as the auto accessory
Analytic Defensive Equity Fund
90
Top Ten Holdings
as of July 31, 2007
U.S. Treasury Bill, 4.863%, 12/13/07 5.0%
- -----------------------------------------
Exxon Mobil 4.5%
- -----------------------------------------
International
Business Machines 3.0%
- -----------------------------------------
JPMorgan Chase 3.0%
- -----------------------------------------
Hewlett-Packard 2.6%
- -----------------------------------------
Chevron 2.6%
- -----------------------------------------
Tyco International 2.4%
- -----------------------------------------
Loews 1.9%
- -----------------------------------------
Boeing 1.7%
- -----------------------------------------
Bank of America 1.7%
- -----------------------------------------
As a % of Total
Fund Investments* 28.4%
- -----------------------------------------
* Top Ten Holdings are all long positions.
manufacturer's stock rallied after reporting a 12% increase in net income
for the first quarter, due primarily to better-than-expected sales in
Europe.
Q. What is the investment outlook for the U.S. large-cap stock market?
A. Analytic's investment process is based on the belief that investor
preferences change, but change slowly over time. As a result, Analytic
continues to emphasize stocks with above average earnings-per-share growth
as these companies continue to outperform. In addition, Analytic continues
to emphasize certain companies with attractive sales- and
cash-flow-to-price ratios, while de-emphasizing companies with higher than
average dividend yields. Finally, Analytic continues to favor companies
with strong price momentum and avoid companies with higher than average
trading volumes.
Analytic Defensive Equity Fund
91
OLD MUTUAL ANALYTIC DEFENSIVE EQUITY FUND - continued
- --------------------------------------------------------------------------------
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- -------------------------------------------------------------------------------------------------------------------------
Annualized Annualized Annualized
Inception 1 Year 5 Year 10 Year Since
Date Return Return Return Inception
- -------------------------------------------------------------------------------------------------------------------------
Class A with load 03/31/05 3.64% n/a n/a 6.78%
Class A without load 03/31/05 9.99% n/a n/a 9.52%
Class C with load 03/31/05 8.24% n/a n/a 8.75%
Class C without load 03/31/05 9.24% n/a n/a 8.75%
Class Z 07/01/78 10.33% 11.69% 8.71% 10.73% 1
Institutional Class 12/09/05(2) 10.34% n/a n/a 7.68%
S&P 500 Index 07/01/78 16.13% 11.81% 5.98% 13.18%
- -------------------------------------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative index can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
2.18% and 1.51%; 2.86% and 2.26%; 1.82% and 1.26%; 2.11% and 1.21%,
respectively.
On December 9, 2005, Old Mutual Analytic Defensive Equity Fund (the "Fund")
acquired substantially all the assets and liabilities of the Analytic Defensive
Equity Fund, a series of The Advisors' Inner Circle Fund (the "Predecessor
Fund"). On June 24, 2002, the Predecessor Fund acquired substantially all of the
assets and liabilities of the Analytic Defensive Equity Fund, a series of UAM
Funds, Inc. II. Substantially similar strategies and policies were used to
manage each of the funds. The Fund's Class Z shares are the successor class of
the Predecessor Fund's Institutional Class. The Fund's Institutional Class is
new.
1 Based on Predecessor Fund's inception date of July 1, 1978. Total return is
annualized.
2 The inception date of this share class represents the date initial seed
capital was invested by Old Mutual Capital, Inc. The effective date this share
class was available for sale to shareholder was December 16, 2005.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
7/31/97 7/31/98 7/31/99 7/31/00 7/31/01 7/31/02 7/31/03 7/31/04 7/31/05 7/31/06 7/31/07
Analytic Defensive Equity Fund,
Class Z $10,000 $12,222 $15,241 $15,418 $15,115 $13,262 $14,228 $16,306 $20,054 $20,888 $23,046
S&P 500 Index $10,000 $11,929 $14,339 $15,625 $13,386 $10,223 $11,311 $12,801 $14,600 $15,385 $17,867
Past performance is not a guarantee of future results. The graph above compares
an investment made in the Fund's Class Z shares on July 31, 1997 to an
investment made in an unmanaged securities index on that date. Performance for
the Fund's other shares will vary due to differences in sales charges and
expenses. The Fund's performance in this chart and the performance table assumes
reinvestment of dividends and capital gain distributions but does not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or on
the redemption of Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Common Stock 90.1%
U.S. Treasury Obligation 5.0%
Cash Equivalents 4.9%
Warrant 0.0%
100.0%
92
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 101.4%
Advertising Agencies - 0.3%
Interpublic Group* 298,629 $ 3,133
--------------
Total Advertising Agencies 3,133
- ---------------------------------------------------------------------
Aerospace/Defense - 3.8%
Boeing (D) 210,293 21,751
Lockheed Martin 6,530 643
Northrop Grumman 113,269 8,620
Raytheon 204,825 11,339
--------------
Total Aerospace/Defense 42,353
- ---------------------------------------------------------------------
Aerospace/Defense-Equipment - 0.1%
Goodrich 25,865 1,627
--------------
Total Aerospace/Defense-Equipment 1,627
- ---------------------------------------------------------------------
Agricultural Operations - 1.3%
Archer-Daniels-Midland (D) 426,538 14,332
--------------
Total Agricultural Operations 14,332
- ---------------------------------------------------------------------
Airlines - 0.9%
AMR* 59,133 1,459
Delta Air Lines* 482,347 8,596
--------------
Total Airlines 10,055
- ---------------------------------------------------------------------
Apparel Manufacturers - 0.9%
Hanesbrands* 307,449 9,534
--------------
Total Apparel Manufacturers 9,534
- ---------------------------------------------------------------------
Appliances - 0.9%
Whirlpool 93,961 9,594
--------------
Total Appliances 9,594
- ---------------------------------------------------------------------
Auto-Cars/Light Trucks - 2.3%
Ford Motor (D) 1,807,605 15,383
General Motors 320,073 10,370
--------------
Total Auto-Cars/Light Trucks 25,753
- ---------------------------------------------------------------------
Auto/Truck Parts & Equipment-Original - 1.1%
Johnson Controls 62,734 7,098
TRW Automotive Holdings* 151,641 4,985
--------------
Total Auto/Truck Parts & Equipment-Original 12,083
- ---------------------------------------------------------------------
Broadcast Services/Programming - 0.0%
Clear Channel Communications 9,511 351
--------------
Total Broadcast Services/Programming 351
- ---------------------------------------------------------------------
Building & Construction Products-Miscellaneous - 0.2%
Armstrong World Industries* 233 10
Owens Corning* 58,895 1,792
--------------
Total Building & Construction Products-Miscellaneous 1,802
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Building Products-Air & Heating - 0.2%
Lennox International 63,909 $ 2,448
--------------
Total Building Products-Air & Heating 2,448
- ---------------------------------------------------------------------
Cable TV - 3.7%
Cablevision Systems, Cl A* 316,742 11,273
Comcast, Cl A* 94,990 2,495
DIRECTV Group* (D) 649,288 14,551
EchoStar Communications, Cl A* (D) 293,077 12,394
--------------
Total Cable TV 40,713
- ---------------------------------------------------------------------
Casino Hotels - 0.0%
Harrah's Entertainment 1,917 162
--------------
Total Casino Hotels 162
- ---------------------------------------------------------------------
Cellular Telecommunications - 1.4%
Alltel 10,249 676
NII Holdings* 6,153 517
US Cellular* (D) 154,028 14,941
--------------
Total Cellular Telecommunications 16,134
- ---------------------------------------------------------------------
Chemicals-Diversified - 0.4%
Dow Chemical 10,402 452
FMC 30,164 2,689
PPG Industries 16,222 1,237
--------------
Total Chemicals-Diversified 4,378
- ---------------------------------------------------------------------
Chemicals-Specialty - 0.4%
Hercules* 237,419 4,929
--------------
Total Chemicals-Specialty 4,929
- ---------------------------------------------------------------------
Commercial Banks-Southern US - 0.0%
First Citizens Bancshares, Cl A 867 156
--------------
Total Commercial Banks-Southern US 156
- ---------------------------------------------------------------------
Computer Services - 2.2%
Affiliated Computer Services,
Cl A* 10,071 540
Computer Sciences* 165,420 9,211
Electronic Data Systems (D) 455,239 12,287
Unisys* 259,955 2,103
--------------
Total Computer Services 24,141
- ---------------------------------------------------------------------
Computers - 6.4%
Hewlett-Packard (D) 713,518 32,843
International Business Machines (D) 343,708 38,032
--------------
Total Computers 70,875
- ---------------------------------------------------------------------
Computers-Integrated Systems - 0.5%
NCR* 100,172 5,231
--------------
Total Computers-Integrated Systems 5,231
- ---------------------------------------------------------------------
93
OLD MUTUAL ANALYTIC DEFENSIVE EQUITY FUND - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Consumer Products-Miscellaneous - 0.4%
Kimberly-Clark 66,007 $ 4,440
--------------
Total Consumer Products-Miscellaneous 4,440
- ---------------------------------------------------------------------
Containers-Metal/Glass - 1.3%
Crown Holdings* 328,081 8,058
Owens-Illinois* 158,537 6,338
--------------
Total Containers-Metal/Glass 14,396
- ---------------------------------------------------------------------
Containers-Paper/Plastic - 0.0%
Pactiv* 7,353 232
--------------
Total Containers-Paper/Plastic 232
- ---------------------------------------------------------------------
Data Processing/Management - 0.1%
First Data 24,356 774
--------------
Total Data Processing/Management 774
- ---------------------------------------------------------------------
Distribution/Wholesale - 1.9%
Ingram Micro, Cl A* 534,326 10,713
Tech Data* 186,000 6,970
WESCO International* 68,950 3,692
--------------
Total Distribution/Wholesale 21,375
- ---------------------------------------------------------------------
Diversified Manufacturing Operations - 3.5%
General Electric 31,334 1,214
Honeywell International 126,527 7,276
Parker Hannifin 3,717 367
Tyco International (D) 627,989 29,698
--------------
Total Diversified Manufacturing Operations 38,555
- ---------------------------------------------------------------------
E-Commerce/Services - 0.1%
HLTH* 102,306 1,295
--------------
Total E-Commerce/Services 1,295
- ---------------------------------------------------------------------
Electric Products-Miscellaneous - 0.0%
Molex 9,626 273
--------------
Total Electric Products-Miscellaneous 273
- ---------------------------------------------------------------------
Electric-Integrated - 1.9%
CMS Energy 161,476 2,609
Edison International 16,009 847
PG&E 226,024 9,676
Public Service Enterprise Group 84,498 7,280
TXU 18,613 1,214
--------------
Total Electric-Integrated 21,626
- ---------------------------------------------------------------------
Electronic Components-Miscellaneous - 1.1%
Jabil Circuit 84,344 1,900
Solectron* 117,292 441
Tyco Electronics* 265,107 9,496
--------------
Total Electronic Components-Miscellaneous 11,837
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - 1.5%
Intel 357,501 $ 8,444
Texas Instruments 228,061 8,026
--------------
Total Electronic Components-Semiconductors 16,470
- ---------------------------------------------------------------------
Electronic Parts Distribution - 2.4%
Arrow Electronics* (D) 559,706 21,392
Avnet* 136,373 5,166
--------------
Total Electronic Parts Distribution 26,558
- ---------------------------------------------------------------------
Engineering/R&D Services - 0.9%
Fluor 26,909 3,108
Jacobs Engineering Group* 98,626 6,078
Shaw Group* 20,998 1,118
--------------
Total Engineering/R&D Services 10,304
- ---------------------------------------------------------------------
Fiduciary Banks - 0.0%
Bank of New York Mellon 7,538 321
--------------
Total Fiduciary Banks 321
- ---------------------------------------------------------------------
Finance-Commercial - 0.0%
CIT Group 320 13
--------------
Total Finance-Commercial 13
- ---------------------------------------------------------------------
Finance-Consumer Loans - 0.0%
SLM 10,687 525
--------------
Total Finance-Consumer Loans 525
- ---------------------------------------------------------------------
Finance-Credit Card - 0.6%
Discover Financial Services* 286,283 6,599
--------------
Total Finance-Credit Card 6,599
- ---------------------------------------------------------------------
Finance-Investment Banker/Broker - 7.0%
Citigroup (D) 271,417 12,640
Goldman Sachs Group 20,146 3,795
JPMorgan Chase (D) 853,308 37,554
Lehman Brothers Holdings 76,052 4,715
Merrill Lynch 114,623 8,505
Morgan Stanley 164,929 10,534
--------------
Total Finance-Investment Banker/Broker 77,743
- ---------------------------------------------------------------------
Finance-Mortgage Loan/Banker - 1.1%
Fannie Mae 163,561 9,787
Freddie Mac 46,700 2,675
--------------
Total Finance-Mortgage Loan/Banker 12,462
- ---------------------------------------------------------------------
Food-Meat Products - 1.5%
Smithfield Foods* 143,287 4,451
Tyson Foods, Cl A(D) 554,757 11,816
--------------
Total Food-Meat Products 16,267
- ---------------------------------------------------------------------
94
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Food-Retail - 0.3%
Kroger 124,733 $ 3,238
--------------
Total Food-Retail 3,238
- ---------------------------------------------------------------------
Gas-Distribution - 0.0%
KeySpan 1,748 73
--------------
Total Gas-Distribution 73
- ---------------------------------------------------------------------
Gold Mining - 0.1%
Newmont Mining 23,803 994
--------------
Total Gold Mining 994
- ---------------------------------------------------------------------
Health Care Cost Containment - 1.7%
McKesson (D) 321,372 18,562
--------------
Total Health Care Cost Containment 18,562
- ---------------------------------------------------------------------
Hotels & Motels - 0.5%
Hilton Hotels 5,850 259
Marriott International, Cl A 121,649 5,055
Starwood Hotels & Resorts
Worldwide 5,819 366
--------------
Total Hotels & Motels 5,680
- ---------------------------------------------------------------------
Human Resources - 0.2%
Manpower 27,817 2,199
--------------
Total Human Resources 2,199
- ---------------------------------------------------------------------
Independent Power Producer - 0.0%
Reliant Energy* 697 18
--------------
Total Independent Power Producer 18
- ---------------------------------------------------------------------
Insurance Brokers - 0.2%
AON 64,776 2,594
--------------
Total Insurance Brokers 2,594
- ---------------------------------------------------------------------
Internet Content-Information/Networks - 0.0%
WebMD Health, Cl A* 4,430 203
--------------
Total Internet Content-Information/Networks 203
- ---------------------------------------------------------------------
Internet Security - 0.4%
Checkfree* 10,505 387
VeriSign* 137,133 4,071
--------------
Total Internet Security 4,458
- ---------------------------------------------------------------------
Life/Health Insurance - 0.3%
Cigna 58,139 3,002
--------------
Total Life/Health Insurance 3,002
- ---------------------------------------------------------------------
Machinery-Construction & Mining - 0.0%
Terex* 4,756 410
--------------
Total Machinery-Construction & Mining 410
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical Products - 1.9%
Baxter International 132,470 $ 6,968
Covidien* 212,845 8,716
Johnson & Johnson 97,261 5,884
--------------
Total Medical Products 21,568
- ---------------------------------------------------------------------
Medical-Biomedical/Genetic - 1.5%
Genentech* (D) 224,341 16,687
--------------
Total Medical-Biomedical/Genetic 16,687
- ---------------------------------------------------------------------
Medical-HMO - 2.3%
Health Net* 224,295 11,111
Humana* (D) 221,967 14,226
--------------
Total Medical-HMO 25,337
- ---------------------------------------------------------------------
Medical-Wholesale Drug Distributors - 3.0%
AmerisourceBergen (D) 256,455 12,082
Cardinal Health (D) 328,497 21,592
--------------
Total Medical-Wholesale Drug Distributors 33,674
- ---------------------------------------------------------------------
Multi-Line Insurance - 5.4%
ACE 146,930 8,481
American Financial Group 40,007 1,124
American International Group 55,515 3,563
American National Insurance 1,901 284
Hartford Financial Services Group 122,613 11,264
Loews (D) 508,449 24,100
MetLife (D) 187,572 11,296
--------------
Total Multi-Line Insurance 60,112
- ---------------------------------------------------------------------
Multimedia - 0.7%
Walt Disney 251,206 8,290
--------------
Total Multimedia 8,290
- ---------------------------------------------------------------------
Office Automation & Equipment - 0.0%
Xerox* 16,218 283
--------------
Total Office Automation & Equipment 283
- ---------------------------------------------------------------------
Oil & Gas Drilling - 0.2%
Pride International* 57,136 2,003
--------------
Total Oil & Gas Drilling 2,003
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - 0.0%
Murphy Oil 4,330 269
--------------
Total Oil Companies-Exploration & Production 269
- ---------------------------------------------------------------------
Oil Companies-Integrated - 9.9%
Chevron (D) 375,252 31,994
ConocoPhillips 112,809 9,119
Exxon Mobil (D) 670,036 57,040
Hess 73,181 4,479
Marathon Oil 148,796 8,214
--------------
Total Oil Companies-Integrated 110,846
- ---------------------------------------------------------------------
95
OLD MUTUAL ANALYTIC DEFENSIVE EQUITY FUND - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Oil Refining & Marketing - 0.1%
Valero Energy 14,388 $ 964
--------------
Total Oil Refining & Marketing 964
- ---------------------------------------------------------------------
Paper & Related Products - 0.5%
International Paper 23,657 877
Rayonier 62,083 2,628
Smurfit-Stone Container* 158,082 1,864
--------------
Total Paper & Related Products 5,369
- ---------------------------------------------------------------------
Pharmacy Services - 1.6%
Medco Health Solutions* (D) 217,684 17,691
--------------
Total Pharmacy Services 17,691
- ---------------------------------------------------------------------
Photo Equipment & Supplies - 0.3%
Eastman Kodak 134,234 3,389
--------------
Total Photo Equipment & Supplies 3,389
- ---------------------------------------------------------------------
Printing-Commercial - 0.5%
RR Donnelley & Sons 141,861 5,995
--------------
Total Printing-Commercial 5,995
- ---------------------------------------------------------------------
Property/Casualty Insurance - 1.0%
Chubb 57,326 2,890
Travelers 159,972 8,123
--------------
Total Property/Casualty Insurance 11,013
- ---------------------------------------------------------------------
Publishing-Periodicals - 0.3%
Idearc 106,129 3,684
--------------
Total Publishing-Periodicals 3,684
- ---------------------------------------------------------------------
Reinsurance - 0.2%
Transatlantic Holdings 32,894 2,406
--------------
Total Reinsurance 2,406
- ---------------------------------------------------------------------
REITs-Hotels - 0.3%
Host Hotels & Resorts 138,499 2,925
--------------
Total REITs-Hotels 2,925
- ---------------------------------------------------------------------
Rental Auto/Equipment - 0.2%
Hertz Global Holdings* 125,467 2,809
--------------
Total Rental Auto/Equipment 2,809
- ---------------------------------------------------------------------
Retail-Automobile - 0.3%
AutoNation* 25,916 505
Penske Auto Group 118,823 2,315
--------------
Total Retail-Automobile 2,820
- ---------------------------------------------------------------------
Retail-Consumer Electronics - 0.3%
Best Buy 71,037 3,168
--------------
Total Retail-Consumer Electronics 3,168
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Retail-Discount - 1.8%
Wal-Mart Stores (D) 439,414 $ 20,191
--------------
Total Retail-Discount 20,191
- ---------------------------------------------------------------------
Retail-Drug Store - 0.2%
Rite Aid* 431,198 2,376
--------------
Total Retail-Drug Store 2,376
- ---------------------------------------------------------------------
Retail-Major Department Store - 0.1%
JC Penney 11,714 797
--------------
Total Retail-Major Department Store 797
- ---------------------------------------------------------------------
Retail-Office Supplies - 0.2%
Office Depot* 107,710 2,688
--------------
Total Retail-Office Supplies 2,688
- ---------------------------------------------------------------------
Retail-Regional Department Store - 1.2%
Dillard's, Cl A 49,739 1,487
Kohl's* (D) 192,045 11,676
--------------
Total Retail-Regional Department Store 13,163
- ---------------------------------------------------------------------
Rubber-Tires - 0.1%
Goodyear Tire & Rubber* 56,562 1,624
--------------
Total Rubber-Tires 1,624
- ---------------------------------------------------------------------
Semiconductor Components-Integrated Circuits - 0.1%
Atmel* 143,898 776
--------------
Total Semiconductor Components-Integrated Circuits
776
- ---------------------------------------------------------------------
Semiconductor Equipment - 0.0%
Lam Research* 4,754 275
--------------
Total Semiconductor Equipment 275
- ---------------------------------------------------------------------
Super-Regional Banks-US - 3.7%
Bank of America (D) 458,506 21,742
Capital One Financial (D) 191,274 13,535
PNC Financial Services Group 32,065 2,137
Wachovia 85,562 4,039
--------------
Total Super-Regional Banks-US 41,453
- ---------------------------------------------------------------------
Telecommunications Equipment-Fiber Optics - 0.2%
Corning* 78,814 1,879
--------------
Total Telecommunications Equipment-Fiber Optics 1,879
- ---------------------------------------------------------------------
Telephone-Integrated - 3.1%
AT&T (D) 553,867 21,689
Qwest Communications
International* 563,758 4,809
Sprint Nextel 210,888 4,330
Verizon Communications 75,160 3,203
--------------
Total Telephone-Integrated 34,031
- ---------------------------------------------------------------------
96
- ---------------------------------------------------------------------
Shares/Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Tobacco - 1.8%
Altria Group (D) 301,545 $ 20,044
--------------
Total Tobacco 20,044
- ---------------------------------------------------------------------
Transport-Services - 1.4%
FedEx 76,599 8,482
Ryder System 124,344 6,761
--------------
Total Transport-Services 15,243
- ---------------------------------------------------------------------
Web Portals/ISP - 1.0%
Google, Cl A* 20,871 10,644
--------------
Total Web Portals/ISP 10,644
--------------
Total Common Stock (Cost $1,057,324) 1,129,766
- ---------------------------------------------------------------------
Treasury Bill - 5.6% (E)
U.S. Treasury Bill
4.863%, 12/13/07 $ 64,140 63,004
--------------
Total Treasury Bill (Cost $63,004) 63,004
- ---------------------------------------------------------------------
Warrants - 0.0%
Raytheon, expires 6/16/11* 528 11
--------------
Total Warrants (Cost $-) 11 -
- ---------------------------------------------------------------------
Money Market Funds - 5.5%
HighMark Diversified Money Market
Fund, Fiduciary Class, 4.88% (C) 5,255,458 5,255
Union Bank of California Money
Market Unlimited Fund, 4.47% (C) 55,651,685 55,652
--------------
Total Money Market Funds (Cost $60,907) 60,907
--------------
Total Investments - 112.5% (Cost $1,181,235) 1,253,688
- ---------------------------------------------------------------------
Securities Sold Short - (17.0)%
Advertising Services - (0.2)%
RH Donnelley (30,818) (1,927)
--------------
Total Advertising Services (1,927)
- ---------------------------------------------------------------------
Aerospace/Defense-Equipment - (0.1)%
DRS Technologies (17,483) (915)
--------------
Total Aerospace/Defense-Equipment (915)
- ---------------------------------------------------------------------
Airlines - (1.1)%
Copa Holdings, Cl A (45,982) (2,525)
Southwest Airlines (622,100) (9,742)
--------------
Total Airlines (12,267)
- ---------------------------------------------------------------------
Applications Software - (0.3)%
Red Hat* (55,632) (1,158)
Salesforce.com* (60,850) (2,365)
--------------
Total Applications Software (3,523)
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Broadcast Services/Programming - (0.7)%
Discovery, Cl A* (314,914) $ (7,470)
--------------
Total Broadcast Services/Programming (7,470)
- ---------------------------------------------------------------------
Building-Residential/Commercial - (2.0)%
KB Home (310,425) (9,874)
Lennar, Cl A (159,138) (4,879)
MDC Holdings (123,235) (5,669)
Ryland Group (45,770) (1,522)
Toll Brothers* (18,039) (396)
--------------
Total Building-Residential/Commercial (22,340)
- ---------------------------------------------------------------------
Casino Hotels - (0.3)%
Wynn Resorts (29,705) (2,868)
--------------
Total Casino Hotels (2,868)
- ---------------------------------------------------------------------
Casino Services - (0.2)%
International Game Technology (72,019) (2,544)
--------------
Total Casino Services (2,544)
- ---------------------------------------------------------------------
Commercial Banks-Eastern US - (0.3)%
Commerce Bancorp (114,663) (3,835)
--------------
Total Commercial Banks-Eastern US (3,835)
- --------------------------------------------------------------------
Consulting Services - (1.2)%
Corporate Executive Board (204,841) (13,810)
--------------
Total Consulting Services (13,810)
- ---------------------------------------------------------------------
Data Processing/Management - (1.2)%
Fair Isaac (113,820) (4,469)
Global Payments (22,060) (825)
Paychex (182,506) (7,552)
--------------
Total Data Processing/Management (12,846)
- ---------------------------------------------------------------------
Diversified Operations - (0.8)%
Leucadia National (234,386) (8,813)
--------------
Total Diversified Operations (8,813)
- ---------------------------------------------------------------------
Electronic Components-Miscellaneous - (1.6)%
Gentex (880,982) (17,391)
--------------
Total Electronic Components-Miscellaneous (17,391)
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - (1.6)%
Qlogic* (341,132) (4,533)
Rambus* (159,590) (2,156)
Silicon Laboratories* (309,838) (10,792)
--------------
Total Electronic Components-Semiconductors (17,481)
- ---------------------------------------------------------------------
97
OLD MUTUAL ANALYTIC DEFENSIVE EQUITY FUND - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Energy-Alternate Sources - (0.0)%
First Solar* (3,037) $ (342)
--------------
Total Energy-Alternate Sources (342)
- ---------------------------------------------------------------------
Finance-Other Services - (0.1)%
Intercontinental Exchange* (6,666) (1,007)
--------------
Total Finance-Other Services (1,007)
- ---------------------------------------------------------------------
Food-Retail - (0.0)%
Whole Foods Market (11,708) (434)
--------------
Total Food-Retail (434)
- ---------------------------------------------------------------------
Footwear & Related Apparel - (0.0)%
Crocs* (8,011) (475)
--------------
Total Footwear & Related Apparel (475)
- ---------------------------------------------------------------------
Hazardous Waste Disposal - (0.1)%
Stericycle* (16,670) (799)
--------------
Total Hazardous Waste Disposal (799)
- ---------------------------------------------------------------------
Internet Infrastructure Software - (0.5)%
F5 Networks* (69,337) (6,011)
--------------
Total Internet Infrastructure Software (6,011)
- ---------------------------------------------------------------------
Investment Companies - (0.1)%
American Capital Strategies (18,988) (721)
--------------
Total Investment Companies (721)
- ---------------------------------------------------------------------
Medical Instruments - (0.0)%
Boston Scientific* (35,789) (471)
--------------
Total Medical Instruments (471)
- ---------------------------------------------------------------------
Medical Products - (0.7)%
Cooper Companies (143,294) (7,183)
--------------
Total Medical Products (7,183)
- ---------------------------------------------------------------------
Motion Pictures & Services - (0.2)%
Dreamworks Animation SKG, Cl A* (59,641) (1,849)
--------------
Total Motion Pictures & Services (1,849)
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - (0.3)%
Quicksilver Resources* (86,318) (3,636)
--------------
Total Oil Companies-Exploration & Production (3,636)
- ---------------------------------------------------------------------
Pipelines - (0.4)%
Spectra Energy (155,159) (3,952)
--------------
Total Pipelines (3,952)
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
REITs-Office Property - (0.1)%
Douglas Emmett (59,406) $ (1,370)
--------------
Total REITs-Office Property (1,370)
- ---------------------------------------------------------------------
Research & Development - (0.0)%
Pharmaceutical Product
Development (13,150) (441)
--------------
Total Research & Development (441)
- ---------------------------------------------------------------------
Retail-Apparel/Shoe - (0.0)%
Urban Outfitters* (21,941) (440)
--------------
Total Retail-Apparel/Shoe (440)
- ---------------------------------------------------------------------
Retail-Jewelry - (0.1)%
Tiffany (18,015) (869)
--------------
Total Retail-Jewelry (869)
- ---------------------------------------------------------------------
Retirement/Aged Care - (0.5)%
Brookdale Senior Living (131,387) (5,257)
--------------
Total Retirement/Aged Care (5,257)
- ---------------------------------------------------------------------
S&L/Thrifts-Eastern US - (1.4)%
Hudson City Bancorp (1,305,461) (15,953)
--------------
Total S&L/Thrifts-Eastern US (15,953)
- ---------------------------------------------------------------------
Schools - (0.0)%
Apollo Group, Cl A* (8,922) (527)
--------------
Total Schools (527)
- ---------------------------------------------------------------------
Telephone-Integrated - (0.4)%
Level 3 Communications* (803,098) (4,200)
--------------
Total Telephone-Integrated (4,200)
- ---------------------------------------------------------------------
Television - (0.3)%
Central European Media
Entertainment, Cl A* (33,382) (3,087)
--------------
Total Television (3,087)
- ---------------------------------------------------------------------
Transport-Marine - (0.2)%
Overseas Shipholding Group (21,235) (1,647)
Tidewater (8,844) (605)
--------------
Total Transport-Marine (2,252)
--------------
Total Securities Sold Short (Proceeds $(194,889)) (189,306)
- ---------------------------------------------------------------------
98
- ---------------------------------------------------------------------
Description Contracts Value (000)
- ---------------------------------------------------------------------
Written Index Option Contracts - (1.2)%
Amex Airline Index
August 2007 Call 50 Call (8,150) $ (3,994)
Amex S&P 400
August 2007 920 Call (450) (56)
Amex Secs
August 2007 250 Call (1,650) (314)
Phlx Bank Index
August 2007 110 Call (3,700) (444)
S&P 500 Index
August 2007 1,450 Call (800) (2,480)
S&P 500 Index
August 2007 1,470 Call (1,000) (2,200)
S&P 500 Index
August 2007 1,485 Call (2,500) (3,425)
--------------
Total Written Index Option Contracts
(Proceeds $(17,770)) (12,913)
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net - 5.7% 63,084
- ---------------------------------------------------------------------
Total Net Assets - 100.0% $ 1,114,553
- ---------------------------------------------------------------------
As of July 31, 2007, the Fund had the following forward foreign currency
contracts outstanding:
Unrealized
Settlement Appreciation/
Date Currency to Deliver Currency to Receive (Depreciation)
- ---------- ---------------------- -------------------- ----------------
9/19/2007 USD (294,942,180) AUD 354,000,000 $ 5,823,385
9/19/2007 USD (157,355,200) GBP 80,000,000 5,019,812
9/19/2007 USD (218,613,367) NOK 1,330,000,000 9,880,187
9/19/2007 USD (163,009,582) SEK 1,150,000,000 8,097,576
9/19/2007 CAD (324,000,000) USD 304,051,201 (111,333)
9/19/2007 CHF (330,000,000) USD 266,761,515 (8,932,586)
9/19/2007 EUR (216,000,000) USD 288,578,160 (7,400,140)
9/19/2007 JPY (25,700,000,000) USD 211,440,842 (6,992,093)
9/19/2007 AUD (60,000,000) USD 51,542,496 565,282
-----------
$ 5,950,090
-----------
The Fund had the following futures contracts open as of July 31, 2007:
Unrealized
Contract Appreciation
Number of Value Expiration (Depreciation)
Contract Description Contracts (000) Date (000)
- -------------------- --------- ----------- ----------- -------------
Amsterdam Index 972 $ 141,281 8/22/2007 $ (7,123)
CAC40 Index 1,148 90,530 8/17/2007 (5,259)
DAX Index 23 5,989 9/21/2007 (157)
DJ Euro Stoxx 50 Index 324 19,183 9/21/2007 (556)
FTSE 100 Index 822 106,081 9/21/2007 (4,545)
Hang Seng Index (685) (101,620) 8/31/2007 587
IBEX 35 Index 353 71,417 8/17/2007 (1,477)
OMX Index (2,025) (37,038) 8/27/2007 2,021
S&P 500 Index (151) (55,187) 9/20/2007 2,532
S&P/MIB Index 414 114,460 9/21/2007 (4,329)
S&P/TSE 60 Index (688) (103,574) 9/20/2007 (1,031)
SPI 200 Index (1,155) (150,458) 9/25/2007 5,401
TOPIX Index 7 1,009 9/17/2007 (30)
--------
$(13,966)
--------
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
99
OLD MUTUAL ANALYTIC GLOBAL DEFENSIVE EQUITY FUND
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Sub-Advisor: Analytic Investors, Inc.
Performance Highlights
o During the one-year period ended July 31, 2007, the Fund's Class A shares
gained 13.27% at net asset value. The Fund underperformed the Index, which
returned 20.11% for the same time period.
o The equity portion of the Fund's portfolio contributed positively to absolute
performance during the period, but underperformed the Index.
o Options experienced losses over the period as a result of the strong equity
market environment.
o Global asset allocation as a whole had a negative impact on overall fund
performance over the period, with the majority of performance attributed to
the equity component.
o Among the best performing stock holdings were long positions in Morgan
Stanley, UOL Group (no longer a Fund holding) and BHP Billiton.
o Detracting from performance during the period were short positions in Unisys,
Singapore Exchange (no longer a Fund holding) and Topdanmark (no longer a
Fund holding).
Q. How did the Fund perform relative to its benchmark?
A. During the one-year period ended July 31, 2007, the Old Mutual Analytic
Global Defensive Equity Fund's (the "Fund") Class A shares gained 13.27% at
net asset value. The Fund underperformed its benchmark, the MSCI World Index
(the "Index"), which returned 20.11% for the same time period. Performance
for all share classes can be found on page 102.
Q. What investment environment did the Fund face during the past year?
A. Global equity markets accelerated during the period as demonstrated by the
double- digit returns of the Index. U.S. equity market indexes lagged the
indexes of many other developed nations primarily on concerns in the
sub-prime mortgage area of the housing market. In August 2006 and throughout
the rest of the year, many U.S. homebuilders lowered earnings expectations
based on spikes in inventory levels. Throughout the year, sub-prime
delinquencies ballooned as interest rates rose and credit spreads widened.
Crude oil prices dipped significantly during the period, only to end the
annual period at similar levels to the prior year. Additionally, the euro
rose in value relative to the U.S. dollar while the Japanese yen fell.
Q. Which market factors influenced the Fund's relative performance?
A. The equity portion of the Fund's portfolio contributed positively to absolute
performance during the period, but underperformed the Index. Investor
behavior - the characteristics investors rewarded or penalized - was fairly
consistent with that seen over recent years. The Fund benefited from equity
positions based on certain value characteristics; such as above average
earnings-to-price and book-to-price ratios. A shift away from companies with
above average efficiency characteristics like inventory turnover also helped
performance. Factor tilts on some technical factors, such as 3-month returns,
detracted from Fund performance during the period.
Options experienced losses over the period as a result of the strong equity
market environment.
Global asset allocation as a whole had a negative impact on overall fund
performance over the period, with the majority of performance attributed to
the equity component. The equity portion of the global asset allocation
component had negatively impacted performance as the inflationary environment
and economic competitiveness were factors that subtracted value during the
year, whereas earnings momentum performed well. Currencies also detracted
from performance over the period with the valuation factor posting a negative
return, while interest differential and relative strength factors performed
well.
Q. How did portfolio composition affect Fund performance?
A. Among the best performing stock holdings was a long position in Morgan
Stanley, as the financial services company's stock rallied on the
announcement of strong quarterly earnings results and share price performance
that came in well above analyst projections. The firm reported impressive
results in all but one of their business segments and announced the launch of
a new private equity business during the period. Also contributing positively
during the period was a long position in UOL Group (no longer a Fund
holding). The Singapore-based property management company's stock gained
value following the announcement of the completion of the acquisition of Pan
Pacific Hotels and Resorts. Finally, a long position in BHP Billiton also
helped performance as the Australian mining company posted strong production
numbers that put the company on course to unveil record full-year profits.
Detracting from performance during the period was a short position in Unisys.
The technology services firm's stock climbed steadily and was boosted, in
part, by a private equity/hedge fund firm that aggressively purchased shares
of the company's
Analytic Global Defensive Equity Fund
100
Top Ten Holdings
as of July 31, 2007
U.S. Treasury Bill, 4.863%, 12/13/07 5.1%
- -------------------------------------
BASF 2.4%
- -------------------------------------
Goldman Sachs Group 2.2%
- -------------------------------------
Chevron 1.9%
- -------------------------------------
BHP Billiton 1.8%
- -------------------------------------
Inditex 1.8%
- -------------------------------------
AT&T 1.8%
- -------------------------------------
Raytheon 1.8%
- -------------------------------------
Kraft Foods, Cl A 1.6%
- -------------------------------------
MetLife 1.4%
- -------------------------------------
As a % of Total
Fund Investments* 21.8%
- -------------------------------------
* Top Ten Holdings are all long positions.
stock. Additionally, a short position in Singapore Exchange (no longer a Fund
holding) detracted from performance. The investment services company's stock
gained value as its fourth-quarter profit more than tripled due, in part, to
increased trading volumes. The company posted the highest annual profit since
it went public in 2000. Finally, a short position in Topdanmark (no longer a
Fund holding) also detracted from performance during the period. The Danish
insurance company's stock price increased on news of higher earnings
forecasts and a smaller than estimated decline in first-quarter profit.
Q. What is the investment outlook for the global stock market?
A. Analytic Investors, Inc.'s ("Analytic") investment process is based on the
belief that investor preferences change, but change slowly over time. As a
result, Analytic continues to emphasize stocks with a strong price momentum
as the sub-advisor believes these companies will continue to outperform. In
addition, Analytic continues to emphasize companies with positive earnings
estimate revisions, while deemphasizing companies with higher than average
tax rates. Finally, Analytic continues to favor companies with attractive
earnings-to-price ratios and avoid companies with higher than average cash
flow growth and asset turnover.
Analytic Global Defensive Equity Fund
101
OLD MUTUAL ANALYTIC GLOBAL DEFENSIVE EQUITY FUND - continued
- --------------------------------------------------------------------------------
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- ---------------------------------------------------------------------------------------------
Annualized
Inception 1 Year Since
Date Return Inception
- ---------------------------------------------------------------------------------------------
Class A with load 05/31/06 6.79% 6.22%
Class A without load 05/31/06 13.27% 11.75%
Class C with load 05/31/06 11.30% 10.74%
Class C without load 05/31/06 12.30% 10.74%
Class Z 05/31/06 13.52% 11.86%
Institutional Class 05/31/06 13.79% 12.19%
MSCI World Index 05/31/06 20.11% 17.59%
- ---------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative index can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
2.95% and 2.80%; 3.70% and 3.55%; 2.70% and 2.55%; 2.35% and 2.25%,
respectively. Expenses for Class A, C, Z, and Institutional shares are based on
estimated amounts.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
5/31/06 7/31/06 7/31/07
Analytic Global Defensive Equity, Institutional Class $10,000 $10,050 $11,436
Analytic Global Defensive Equity, Class Z $10,000 $10,040 $11,397
Analytic Global Defensive Equity, Class A $9,425 $9,472 $10,729
Analytic Global Defensive Equity, Class C $10,000 $10,030 $11,264
MSCI World Index $10,000 $10,059 $12,082
Past performance is not a guarantee of future results. The graph above compares
an investment made in each of the Fund's share classes on the inception date of
5/31/06 to an investment made in an unmanaged securities index on that date. The
performance of the Fund's Class A shares shown in the line graph takes into
account the maximum initial sales charge. The Fund's performance in this chart
and the performance table assumes reinvestment of dividends and capital gain
distributions but does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or on the redemption of Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Foreign Common Stock 47.1%
Common Stock 39.6%
Cash Equivalent 6.9%
Foreign Preferred Stock 1.3%
U.S. Treasury Obligation 5.1%
100.0%
102
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 43.8%
Aerospace/Defense - 2.0%
Raytheon (D) 16,544 $ 916
--------------
Total Aerospace/Defense 916
- ---------------------------------------------------------------------
Apparel Manufacturers - 0.6%
Polo Ralph Lauren 3,100 277
--------------
Total Apparel Manufacturers 277
- ---------------------------------------------------------------------
Auto-Medium & Heavy Duty Trucks - 0.2%
Paccar 1,200 98
--------------
Total Auto-Medium & Heavy Duty Trucks 98
- ---------------------------------------------------------------------
Broadcast Services/Programming - 0.5%
Liberty Media - Capital, Ser A* 2,100 240
--------------
Total Broadcast Services/Programming 240
- ---------------------------------------------------------------------
Chemicals-Diversified - 0.1%
PPG Industries 800 61
--------------
Total Chemicals-Diversified 61
- ---------------------------------------------------------------------
Coal - 0.1%
Consol Energy 1,500 62
--------------
Total Coal 62
- ---------------------------------------------------------------------
Coatings/Paint - 0.5%
Sherwin-Williams 3,600 251
--------------
Total Coatings/Paint 251
- ---------------------------------------------------------------------
Commercial Banks-Eastern US - 0.2%
M & T Bank 800 85
--------------
Total Commercial Banks-Eastern US 85
- ---------------------------------------------------------------------
Commercial Services-Finance - 0.3%
Moody's 2,200 118
--------------
Total Commercial Services-Finance 118
- ---------------------------------------------------------------------
Computer Services - 1.4%
Ceridian (D)* 1,700 58
Electronic Data Systems (D) 21,597 583
--------------
Total Computer Services 641
- ---------------------------------------------------------------------
Computers - 1.6%
Hewlett-Packard 13,318 613
International Business Machines (D) 1,400 155
--------------
Total Computers 768
- ---------------------------------------------------------------------
Cosmetics & Toiletries - 0.2%
Avon Products 2,200 79
--------------
Total Cosmetics & Toiletries 79
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Data Processing/Management - 0.1%
Broadridge Financial Solutions (D) 3,000 $ 53
--------------
Total Data Processing/Management 53
- ---------------------------------------------------------------------
Diversified Manufacturing Operations - 0.5%
SPX 1,800 169
Tyco International (D) 1,225 58
--------------
Total Diversified Manufacturing Operations 227
- ---------------------------------------------------------------------
Electric-Integrated - 4.7%
American Electric Power (D) 4,000 174
Centerpoint Energy (D) 3,400 56
Edison International 5,700 302
FirstEnergy (D) 9,703 589
Pepco Holdings 8,400 227
PG&E 5,300 227
Wisconsin Energy 11,500 494
Xcel Energy 6,500 132
--------------
Total Electric-Integrated 2,201
- ---------------------------------------------------------------------
Electronic Components-Miscellaneous - 0.4%
Sanmina-SCI* 52,000 143
Solectron (D)* 15,900 60
--------------
Total Electronic Components-Miscellaneous 203
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - 0.2%
LSI* 14,900 107
--------------
Total Electronic Components-Semiconductors 107
- ---------------------------------------------------------------------
Engines-Internal Combustion - 1.0%
Cummins (D) 3,900 463
--------------
Total Engines-Internal Combustion 463
- ---------------------------------------------------------------------
Enterprise Software/Services - 1.6%
Oracle* (D) 38,200 730
--------------
Total Enterprise Software/Services 730
- ---------------------------------------------------------------------
Finance-Investment Banker/Broker - 3.9%
Citigroup (D) 2,500 117
Goldman Sachs Group (D) 5,938 1,118
Lehman Brothers Holdings 1,819 113
Merrill Lynch (D) 4,670 347
Morgan Stanley 1,979 126
--------------
Total Finance-Investment Banker/Broker 1,821
- ---------------------------------------------------------------------
Finance-Mortgage Loan/Banker - 0.3%
Fannie Mae 2,500 150
--------------
Total Finance-Mortgage Loan/Banker 150
- ---------------------------------------------------------------------
103
OLD MUTUAL ANALYTIC GLOBAL DEFENSIVE EQUITY FUND - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Food-Miscellaneous/Diversified - 1.9%
General Mills 1,000 $ 56
Kraft Foods, Cl A (D) 25,500 835
--------------
Total Food-Miscellaneous/Diversified 891
- ---------------------------------------------------------------------
Gas-Distribution - 0.9%
Sempra Energy 8,200 432
--------------
Total Gas-Distribution 432
- ---------------------------------------------------------------------
Health Care Cost Containment - 0.9%
Mckesson (D) 7,500 433
--------------
Total Health Care Cost Containment 433
- ---------------------------------------------------------------------
Hotels & Motels - 0.1%
Marriott International, Cl A 1,700 71
--------------
Total Hotels & Motels 71
- ---------------------------------------------------------------------
Human Resources - 0.4%
Manpower 2,150 170
--------------
Total Human Resources 170
- ---------------------------------------------------------------------
Investment Management/Advisory Services - 0.2%
Ameriprise Financial 1,600 96
--------------
Total Investment Management/Advisory Services 96
- ---------------------------------------------------------------------
Life/Health Insurance - 0.4%
Lincoln National 2,057 124
Principal Financial Group (D) 1,000 57
--------------
Total Life/Health Insurance 181
- ---------------------------------------------------------------------
Machinery-Construction & Mining - 0.2%
Terex* 1,000 86
--------------
Total Machinery-Construction & Mining 86
- ---------------------------------------------------------------------
Machinery-Farm - 0.2%
Deere 700 84
--------------
Total Machinery-Farm 84
- ---------------------------------------------------------------------
Medical Products - 0.2%
Baxter International (D) 2,100 111
--------------
Total Medical Products 111
- ---------------------------------------------------------------------
Medical-Drugs - 0.6%
Merck 3,286 163
Wyeth (D) 2,800 136
--------------
Total Medical-Drugs 299
- ---------------------------------------------------------------------
Medical-Hospitals - 0.3%
Health Management Associates, Cl A 18,700 151
--------------
Total Medical-Hospitals 151
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical-Wholesale Drug Distributors - 0.6%
AmerisourceBergen 4,397 $ 207
Cardinal Health 900 59
--------------
Total Medical-Wholesale Drug Distributors 266
- ---------------------------------------------------------------------
Metal-Diversified - 0.3%
Freeport-McMoRan Copper & Gold 1,700 160
--------------
Total Metal-Diversified 160
- ---------------------------------------------------------------------
Multi-Line Insurance - 2.2%
American International Group (D) 4,500 289
MetLife (D) 12,400 747
--------------
Total Multi-Line Insurance 1,036
- ---------------------------------------------------------------------
Multimedia - 1.5%
News, Cl A 12,100 255
Walt Disney 13,600 449
--------------
Total Multimedia 704
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - 2.2%
Apache 1,700 137
Chesapeake Energy 9,300 317
Denbury Resources* 8,300 332
Noble Energy 1,300 79
Ultra Petroleum* 2,747 152
--------------
Total Oil Companies-Exploration & Production 1,017
- ---------------------------------------------------------------------
Oil Companies-Integrated - 4.4%
Chevron (D) 11,300 963
Exxon Mobil 4,200 358
Hess 5,300 324
Marathon Oil 7,600 420
--------------
Total Oil Companies-Integrated 2,065
- ---------------------------------------------------------------------
Oil Refining & Marketing - 0.5%
Tesoro 1,700 85
Valero Energy 2,000 134
--------------
Total Oil Refining & Marketing 219
- ---------------------------------------------------------------------
Oil-Field Services - 0.3%
Halliburton 3,400 123
--------------
Total Oil-Field Services 123
- ---------------------------------------------------------------------
Retail-Major Department Store - 0.5%
JC Penney 3,400 231
--------------
Total Retail-Major Department Store 231
- ---------------------------------------------------------------------
Retail-Regional Department Store - 0.2%
Kohl's* 1,300 79
--------------
Total Retail-Regional Department Store 79
- ---------------------------------------------------------------------
104
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Retail-Restaurants - 0.3%
Darden Restaurants 3,600 $ 153
--------------
Total Retail-Restaurants 153
- ---------------------------------------------------------------------
Schools - 0.1%
Career Education* (D) 1,800 53
--------------
Total Schools 53
- ---------------------------------------------------------------------
Super-Regional Banks-US - 0.6%
PNC Financial Services Group 1,100 73
Suntrust Banks 1,500 118
Wachovia (D) 1,200 57
Wells Fargo (D) 1,700 57
--------------
Total Super-Regional Banks-US 305
- ---------------------------------------------------------------------
Telecommunications Equipment-Fiber Optics - 0.1%
Corning* 2,200 52
--------------
Total Telecommunications Equipment-Fiber Optics 52
- ---------------------------------------------------------------------
Telephone-Integrated - 2.0%
AT&T 23,574 923
--------------
Total Telephone-Integrated 923
- ---------------------------------------------------------------------
Television - 1.3%
CBS, Cl B 18,700 593
--------------
Total Television 593
--------------
Total Common Stock (Cost $21,305) 20,535
- ---------------------------------------------------------------------
Foreign Common Stock - 51.9%
Australia - 4.3%
BHP Billiton (D) 29,803 948
Commonwealth Bank of Australia 4,292 197
GPT Group 14,076 53
ING Industrial Fund (D) 283,234 595
Stockland 33,889 220
--------------
Total Australia 2,013
- ---------------------------------------------------------------------
Belgium - 0.1%
KBC Groep 438 57
--------------
Total Belgium 57
- ---------------------------------------------------------------------
Canada - 3.7%
Alcan 600 58
Barrick Gold 8,300 273
Canadian Imperial Bank of Commerce 1,800 156
EnCana 3,300 202
Ensign Energy Services 3,200 54
National Bank of Canada 1,000 57
Quebecor World 6,600 76
Sherritt International 7,200 110
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Canada - continued
Talisman Energy 10,500 $ 192
Teck Cominco, Cl B 6,700 297
TELUS 4,300 240
--------------
Total Canada 1,715
- ---------------------------------------------------------------------
Denmark - 2.9%
AP Moeller - Maersk, Cl B (D) 49 647
Carlsberg, Cl B (D) 4,425 568
Danske Bank 3,400 143
--------------
Total Denmark 1,358
- ---------------------------------------------------------------------
Finland - 0.8%
Kesko, Cl B 2,160 114
Stora Enso, Cl R 11,960 206
Wartsila, Cl B 891 62
--------------
Total Finland 382
- ---------------------------------------------------------------------
France - 3.7%
Air France-KLM 1,263 57
BNP Paribas 1,950 214
Bouygues 2,468 198
Cie Generale d'Optique Essilor
International (D) 10,334 630
Groupe Danone 2,122 154
Lafarge (D) 2,825 479
--------------
Total France 1,732
- ---------------------------------------------------------------------
Germany - 6.0%
BASF (D) 9,635 1,246
Bayer 2,403 170
Commerzbank 3,039 131
DaimlerChrysler 2,044 185
Deutsche Bank 2,308 313
Deutsche Lufthansa 7,582 213
Hypo Real Estate Holding 913 56
Muenchener Rueckversicherungs 326 56
ThyssenKrupp 6,004 332
Volkswagen 635 114
--------------
Total Germany 2,816
- ---------------------------------------------------------------------
Hong Kong - 1.5%
Swire Pacific, Cl A (D) 61,000 690
--------------
Total Hong Kong 690
- ---------------------------------------------------------------------
Italy - 2.0%
Capitalia 6,999 66
Fiat (D) 3,935 116
Italcementi 10,484 287
Lottomatica (D) 10,931 403
Telecom Italia 21,129 57
--------------
Total Italy 929
- ---------------------------------------------------------------------
105
OLD MUTUAL ANALYTIC GLOBAL DEFENSIVE EQUITY FUND - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Japan - 9.5%
Hitachi (D) 61,000 $ 439
Komatsu 4,600 145
Kyocera 1,500 146
Marubeni 28,000 269
Mitsubishi Electric (D) 16,000 170
Mitsubishi Materials 10,000 64
Mitsubishi UFJ Financial Group 5 53
Mitsui Fudosan 8,000 209
Mizuho Financial Group 9 63
Nikon 8,000 253
Nippon Mining Holdings 6,000 60
Nisshin Steel 18,000 79
Nomura Research Institute 3,600 114
NTT Urban Development 63 114
Odakyu Electric Railway 10,000 59
Olympus (D) 15,000 615
Sony 4,200 224
Sumco (D) 7,000 360
Tanabe Seiyaku 28,000 328
Tokyu 9,000 56
Toshiba (D) 53,000 497
Toyota Industries 1,600 73
Toyota Tsusho 3,400 89
--------------
Total Japan 4,479
- ---------------------------------------------------------------------
Netherlands - 0.7%
Aegon 3,069 55
TNT 6,219 267
--------------
Total Netherlands 322
- ---------------------------------------------------------------------
New Zealand - 0.2%
Fletcher Building (D) 12,254 116
--------------
Total New Zealand 116
- ---------------------------------------------------------------------
Portugal - 1.7%
Banco BPI 12,579 116
Banco Espirito Santo 5,038 118
Portugal Telecom (D) 41,336 578
--------------
Total Portugal 812
- ---------------------------------------------------------------------
Singapore - 0.6%
DBS Group Holdings 8,000 120
Oversea-Chinese Banking 20,000 118
Venture 6,000 60
--------------
Total Singapore 298
- ---------------------------------------------------------------------
South Africa - 0.0%
Mondi 188 2
--------------
Total South Africa 2
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Spain - 4.5%
Banco Bilbao Vizcaya Argentaria 4,404 $ 108
Banco Santander Central Hispano (D) 3,097 59
Fomento de Construcciones y Contratas 1,272 114
Inditex 15,599 933
Mapfre (D) 107,129 496
Telefonica 10,732 251
Union Fenosa 2,444 134
--------------
Total Spain 2,095
- ---------------------------------------------------------------------
Sweden - 1.8%
Castellum 19,500 236
Fabege 5,248 56
Nordea Bank 9,554 154
Skandinaviska Enskilda Banken, Cl A 3,510 120
SKF, Cl B 6,000 125
Volvo, Cl B 9,490 174
--------------
Total Sweden 865
- ---------------------------------------------------------------------
Switzerland - 1.0%
ABB 2,465 60
Credit Suisse Group 813 53
Swatch Group 1,187 358
--------------
Total Switzerland 471
- ---------------------------------------------------------------------
United Kingdom - 6.9%
Balfour Beatty 12,452 108
Barclays (D) 4,112 58
BT Group 71,593 454
Centrica (D) 7,849 57
De La Rue 13,913 209
HBOS 9,995 195
HSBC Holdings (D) 9,702 180
J Sainsbury 5,032 58
Legal & General Group 75,760 213
Man Group 7,936 90
Marks & Spencer Group 21,619 275
Mondi 470 4
Reed Elsevier 12,820 158
Royal Bank of Scotland Group 19,583 233
Scottish & Newcastle 14,954 179
SSL International 8,379 78
Taylor Wimpey (D) 8,801 58
Tesco (D) 55,854 459
WPP Group 11,582 166
--------------
Total United Kingdom 3,232
--------------
Total Foreign Common Stock (Cost $24,112) 24,384
- ---------------------------------------------------------------------
106
- ---------------------------------------------------------------------
Shares/Face
Description Amount (000) Value (000)
- ---------------------------------------------------------------------
Foreign Preferred Stock - 1.4%
Germany - 0.1%
Henkel KGaA 1,046 $ 56
--------------
Total Germany 56
- ---------------------------------------------------------------------
Italy - 1.3%
Unipol (D) 188,429 598
--------------
Total Italy 598
--------------
Total Foreign Preferred Stock (Cost $698) 654
- ---------------------------------------------------------------------
Treasury Bills - 5.6% (E)
U.S. Treasury Bill
4.863%, 12/13/07 $ 2,700 2,653
--------------
Total Treasury Bills (Cost $2,652) 2,653
- ---------------------------------------------------------------------
Money Market Fund - 7.7%
Morgan Stanley Institutional Liquidity
Funds, Prime Portfolio, Institutional
Class 5.29% (C) 3,600,266 3,600
--------------
Total Money Market Fund (Cost $3,600) 3,600
- ---------------------------------------------------------------------
Total Investments (110.4%) (Cost $52,367) 51,826
- ---------------------------------------------------------------------
Securities Sold Short - (4.8)%
Airlines - (0.2)%
Southwest Airlines (4,600) (72)
--------------
Total Airlines (72)
- ---------------------------------------------------------------------
Auto-Cars/Light Trucks - (0.7)%
Ford Motor (27,700) (236)
General Motors (3,300) (107)
--------------
Total Auto-Cars/Light Trucks (343)
- ---------------------------------------------------------------------
Commercial Services - (0.2)%
Choicepoint* (2,700) (104)
--------------
Total Commercial Services (104)
- ---------------------------------------------------------------------
Commercial Services-Finance - (0.1)%
Western Union (3,000) (60)
--------------
Total Commercial Services-Finance (60)
- ---------------------------------------------------------------------
Computer Services - (0.3)%
Unisys* (15,900) (129)
--------------
Total Computer Services (129)
- ---------------------------------------------------------------------
Medical-Biomedical/Genetic - (0.1)%
Vertex Pharmaceuticals* (2,100) (68)
--------------
Total Medical-Biomedical/Genetic (68)
- ---------------------------------------------------------------------
Photo Equipment & Supplies - (0.2)%
Eastman Kodak (3,500) (88)
--------------
Total Photo Equipment & Supplies (88)
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Pipelines - (1.3)%
Equitable Resources (12,800) $ (603)
--------------
Total Pipelines (603)
- ---------------------------------------------------------------------
Retail-Restaurants - (1.7)%
Brinker International (2,100) (56)
Wendy's International (21,600) (757)
--------------
Total Retail-Restaurants (813)
--------------
Total Securities Sold Short
(Proceeds $(2,380)) (2,280)
- ---------------------------------------------------------------------
Foreign Securities Sold Short - (11.4)%
Australia - (2.5)%
AGL Energy (13,599) (178)
Harvey Norman Holdings (22,429) (100)
Macquarie Goodman Group (22,064) (112)
Macquarie Infrastructure Group (84,523) (233)
Newcrest Mining (2,898) (60)
Orica (2,383) (56)
Origin Energy (33,197) (274)
Publishing & Broadcast (3,505) (55)
WorleyParsons (3,064) (88)
--------------
Total Australia (1,156)
- ---------------------------------------------------------------------
Austria - (0.5)%
Oest Elektrizatswits, Cl A (4,258) (208)
--------------
Total Austria (208)
- ---------------------------------------------------------------------
Canada - (3.8)%
CI Financial Income Fund (4,900) (128)
Eldorado Gold* (27,400) (125)
Gildan Activewear* (5,600) (192)
Imperial Oil (3,900) (182)
Loblaw (8,000) (371)
Niko Resources (900) (82)
Opti Canada* (7,600) (164)
Transalta (9,700) (276)
UTS Energy* (10,000) (58)
Western Oil Sands, Cl A* (6,200) (217)
--------------
Total Canada (1,795)
- ---------------------------------------------------------------------
Denmark - (0.1)%
East Asiatic (1,025) (59)
--------------
Total Denmark (59)
- ---------------------------------------------------------------------
Finland -(0.1)%
Nokian Renkaat (2,008) (66)
--------------
Total Finland (66)
- ---------------------------------------------------------------------
107
OLD MUTUAL ANALYTIC GLOBAL DEFENSIVE EQUITY FUND - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Shares/
Description Contracts Value (000)
- ---------------------------------------------------------------------
France - (1.4)%
Lagardere Groupe (2,162) $ (171)
Pagesjaunes Group (6,638) (133)
Pernod Ricard (267) (56)
Television Francaise (7,598) (254)
--------------
Total France (614)
- ---------------------------------------------------------------------
Germany - (0.1)%
Infineon Technologies* (3,240) (53)
--------------
Total Germany (53)
- ---------------------------------------------------------------------
Japan - (2.2)%
Aeon Credit Service (4,100) (58)
Circle K Sunkus (3,400) (58)
Familymart (2,200) (57)
Hoya (8,400) (266)
Marui (9,900) (112)
Meitec (3,400) (97)
Nippon Kayaku (9,000) (78)
Obic (420) (83)
Ryohin Keikaku (2,900) (173)
Sankyo (1,400) (56)
--------------
Total Japan (1,038)
- ---------------------------------------------------------------------
New Zealand - (0.2)%
Auckland International Airport (35,569) (90)
--------------
Total New Zealand (90)
- ---------------------------------------------------------------------
Norway - (0.4)%
Norske Skogindustrier (13,500) (188)
--------------
Total Norway (188)
- ---------------------------------------------------------------------
Sweden - (0.1)%
Securitas, Cl B (3,600) (55)
--------------
Total Sweden (55)
- ---------------------------------------------------------------------
United Kingdom - (0.0)%
Anglo American (170) (10)
--------------
Total United Kingdom (10)
--------------
Total Foreign Securities Sold Short
(Proceeds $(5,380)) (5,332)
- ---------------------------------------------------------------------
Written Index Option Contracts - (1.0)%
Amex S&P 400
August 2007 920 Call (22) (3)
Cboe S&P Small Cap 600
August 2007 445 Call (46) (3)
Phlx Bank Index
August 2007 110 Call (180) (22)
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Contracts Value (000)
- ---------------------------------------------------------------------
Written Index Option Contracts - continued
S&P 500 Index
August 2007 1,450 Call (50) $ (155)
S&P 500 Index
August 2007 1,470 Call (50) (110)
S&P 500 Index
August 2007 1,485 Call (100) (137)
S&P 500 Index
August 2007 1,505 Call (21) (20)
--------------
Total Written Index Option Contracts
(Proceeds $(803)) (450)
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net - 6.8% 3,170
- ---------------------------------------------------------------------
Total Net Assets - 100.0% $ 46,934
- ---------------------------------------------------------------------
The Fund had the following futures contracts open as of July 31, 2007:
Unrealized
Number Contract Appreciation
of Value Expiration (Depreciation)
Contract Description Contracts (000) Date (000)
- --------------------------------- --------- -------- ----------- --------------
Amsterdam Index 34 $ 4,942 8/22/2007 $(249)
CAC40 Index 53 4,180 8/17/2007 (243)
Australian Dollar Currency Future 98 8,377 9/17/2007 138
British Pound Currency Future 50 6,354 9/17/2007 135
Canadian Dollar Currency Future (99) (9,306) 9/18/2007 19
Euro Currency Future (47) (8,055) 9/20/2007 (199)
DAX Index 7 1,823 9/21/2007 (48)
DJ Euro Stoxx 50 Index 12 710 9/21/2007 (18)
FTSE 100 Index 35 4,517 9/21/2007 (158)
Hang Seng Index (25) (3,709) 8/31/2007 21
IBEX 35 Index 13 2,630 8/17/2007 (54)
Japanese Yen Currency Future (45) (4,784) 9/17/2007 (98)
OMX Index (81) (1,482) 8/27/2007 81
S&P 500 Index (6) (2,193) 9/20/2007 102
S&P/MIB Index 15 4,147 9/21/2007 (157)
S&P/TSE 60 Index (38) (5,721) 9/20/2007 (104)
SPI 200 Index (43) (5,601) 9/25/2007 201
TOPIX Index (3) (432) 9/17/2007 19
-----
$(612)
-----
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
108
OLD MUTUAL CLAY FINLAY CHINA FUND
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Sub-Advisor: Clay Finlay Inc.
Performance Highlights
o During the one-year period ended July 31, 2007, the Fund's Class A shares
gained 73.81% at net asset value. Despite producing strong absolute gains,
the Fund underperformed the Index, which returned 93.22% for the same time
period.
o In terms of sectors, health care, energy and consumer discretionary
contributed positively to performance relative to the Index, and
industrials, financials and utilities detracted from relative results.
o Individual stocks that enhanced the Fund's absolute performance include
China Life Insurance, China Petroleum & Chemical and China Mobile.
o Individual stocks detracting from the Fund's absolute gains included TPV
Technology (no longer a Fund holding), Mirabell International Holdings (no
longer a Fund holding) and GST Holdings (no longer a Fund holding).
Q. How did the Fund perform relative to its benchmark?
A. During the one-year period ended July 31, 2007, the Old Mutual Clay Finlay
China Fund's (the "Fund") Class A shares gained 73.81% at net asset value.
Despite producing strong absolute gains, the Fund underperformed its
benchmark, the MSCI China Index (the "Index"), which returned 93.22% for
the same time period. Performance for all share classes can be found on
page 111.
Q. What investment environment did the Fund face during the past year?
A. The Chinese stock market was a generally favorable investment environment
during the period. It was supported by strong economic growth in China,
appreciation of the Chinese Yuan, strong liquidity in Hong Kong,
constructive government policies, better than expected corporate earnings
growth and new market highs. The country's gross domestic product ("GDP")
rose significantly during the period; all three components of GDP
(investments, consumer spending and trade surplus) contributed to the
higher growth rate. Liquidity in Hong Kong was evidenced by 80 initial
public offerings ("IPOs") raising a total of $40 billion U.S. dollars
during the one-year period. Interest rate hikes and increases in the bank
reserve requirement ratio were policies implemented by the government to
keep economic expansion under control. The financials sector contributed to
the market highs, while oil stocks lagged due to the decrease in prices of
international crude oil.
Toward the end of the period, however, new concerns plagued market
confidence and investors began to worry about signs of resurgent inflation
and the sub-prime mortgage market in the United States. The consumer price
index ("CPI") rose above the official 3% target for 2007 in May and June,
due to a sharp increase in food prices. This raised concerns over further
tightening in monetary policy. Additionally, the sub-prime mortgage issue
in the United States implied a reduction of risk appetite among
international investors. This caused a wave of selling, especially from
hedge funds, of all major equity markets. Even though Clay Finlay Inc.
("Clay Finlay") believes that China's growth story remains intact and the
Chinese banking system appears to be relatively immune from the
consequences, the firm notes that even Chinese stocks listed in Hong Kong
could not escape the effects of the U.S. sub-prime crisis.
Q. Which market factors influenced the Fund's relative performance?
A. High earnings growth, strong macroeconomic data and a lack of attractive
alternatives encouraged primarily retail investors to invest in Chinese
equities, which enjoyed a spectacular rally during the one-year period.
Many investors paid close attention to the valuation gap between domestic A
shares and Hong Kong listed ("H") shares based on the underlying idea that
H shares were unduly lagging behind and would catch up to their domestic
counterparts. The Fund was negatively impacted by strong cash in flows in
December 2006, an increase in market volatility at the beginning of 2007
and the change in market focus from one sector to another.
Q. How did portfolio composition affect Fund performance?
A. In terms of sectors, health care, energy and consumer discretionary
contributed positively to performance relative to the Index. Industrials,
financials and utilities, on the other hand, detracted from relative
results.
Individual stocks that enhanced the Fund's absolute performance include
China Life Insurance, China Petroleum & Chemical and China Mobile. China
Life Insurance is the leading life insurer in mainland China. The company
posted strong gains during the period due to growth in insurance premiums
and earnings, a jump in investment income (higher than expected yield on
their equity investment portfolio) and the success of the firm's listing on
the domestic market in January 2007 where the stock's A-shares surged 106%
on the first day of trading and continued to trade at a substantial premium
to Hong Kong listed shares. China Petroleum & Chemical, the second largest
oil and gas
Clay Finlay China Fund
109
OLD MUTUAL CLAY FINLAY CHINA FUND - continued
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Sub-Advisor: Clay Finlay Inc.
Top Ten Holdings
as of July 31, 2007
China Life Insurance, CI H 8.4%
- -------------------------------------------------
China Mobile 7.9%
- -------------------------------------------------
Industrial & Commercial
Bank of China, CI H 5.8%
- -------------------------------------------------
China Construction Bank, CI H 4.7%
- -------------------------------------------------
Ping An Insurance Group, CI H 4.7%
- -------------------------------------------------
CNOOC 4.4%
- -------------------------------------------------
PetroChina ADR 3.6%
- -------------------------------------------------
China Metal
International Holdings 2.9%
- -------------------------------------------------
Shandong Weigao Group
Medical Polymer, CI H 2.9%
- -------------------------------------------------
Xinjiang Tianye Water Savings
Irrigation System, CI H 2.9%
- -------------------------------------------------
As a % of Total
Fund Investments 48.2%
- -------------------------------------------------
producer in China and Asia's largest refiner, performed well as investors
anticipated refining profits and margins to surge due to weakening
international crude oil prices since the fall of 2006. This belief was
confirmed by the turnaround of the company's refining division's
profitability in the fourth quarter of 2006 and the release of impressive
results for the 2006 fiscal year. China Mobile, a leader in mobile
telecommunication, benefited from consistent and steady growth in the
number of new subscribers to their services.
Individual stocks detracting from the Fund's absolute gains included TPV
Technology (no longer a Fund holding), Mirabell International Holdings (no
longer a Fund holding) and GST Holdings (no longer a Fund holding). TPV
Technology, one of the world's largest CRT and LCD monitor producers, was
negatively impacted by earnings downgrades following decreasing shipments
of LCD and CRT monitors, declining panel prices and - from a broader
perspective - steeper industry competition. These factors all contributed
to Clay Finlay's decision to sell the stock in November 2006. Mirabell
International Holdings is a Hong Kong-based shoe retailer that listed its
Chinese subsidiary, Belle International, in Hong Kong. Contrary to Clay
Finlay's expectations, the company's stock was sold off and declined
following the successful IPO of its subsidiary. This market reaction led
the sub-advisor to liquidate its holding in Mirabell International Holdings
perceiving that it had misunderstood the associated risks. The timing of
the sale was unfortunate as the stock rebounded shortly thereafter. GST
Holdings is a leading integrated provider of fire alarm systems and
services in China. The form experienced disappointing expansion rates due
to a continued decline in the average selling price of its products and the
slow contribution of new high-margin products and services to the bottom
line. As the market began to downgrade earnings forecasts, Clay Finlay
decided to look for more interesting opportunities and liquidated the
Fund's position in GST Holdings.
Q. What is the investment outlook for the Chinese market?
A. Clay Finlay believes Chinese equities may continue to be well supported by
strong economic fundamentals and earnings upgrades. The relaxation of the
Qualified Domestic Institutional Investor ("QDII") system, which allows
Chinese investors to buy foreign stocks, is expected to channel domestic
assets towards better known Chinese names listed in Hong Kong at lower
valuations compared to Shanghai or Shenzhen. The universe of Chinese
equities is expanding rapidly through IPOs. Many investment themes are
attractive over the long term according to the sub-advisor, including
investment in infrastructure programs, the acceleration of private spending
by the rising middle class, the coming reform of the health care system,
and governmental efforts to manage pollution, to control environmental
issues and to promote new energy sources.
Clay Finlay also notes that a market correction would offer interesting
buying opportunities in high quality stocks with strong sustainable
earnings growth rates for long-term investors. China is playing an
increasingly important role in the world economy, and the sub-advisor
believes that China's influence will only grow in the coming years. China
is not a short-term story, but a long-term investment theme in Clay
Finlay's view.
Clay Finlay China Fund
110
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- -------------------------------------------------------------------------------------------------------
1 Year Annualized
Inception Date Return Since Inception
- -------------------------------------------------------------------------------------------------------
Class A with front-end load 12/30/05 63.78% 62.85%
Class A without load 12/30/05 73.81% 69.05%
Class C with deferred sales load 12/30/05 71.67% 67.95%
Class C without deferred sales load 12/30/05 72.67% 67.95%
Class Z 12/30/05 74.36% 69.55%
Institutional Class 12/30/05 74.91% 70.05%
MSCI China Index 12/30/05 93.22% 76.27%
- -------------------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative index can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
2.83% and 2.10%; 3.58% and 2.85%; 2.58% and 1.85%; 2.58% and 1.55%,
respectively. Expenses for Class A, C, and Z shares are based on estimated
amounts.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
12/30/05 7/31/06 7/31/07
Clay Finlay China Fund, Institutional Class $10,000 $13,269 $23,209
Clay Finlay China Fund, Class Z $10,000 $13,250 $23,103
Clay Finlay China Fund, Class A $9,425 $12,470 $21,674
Clay Finlay China Fund, Class C $10,000 $13,180 $22,757
MSCI China Index $10,000 $12,698 $24,536
Past performance is not a guarantee of future results. The graph above compares
an investment made in each of the Fund's share classes on the inception date of
12/30/05 to an investment made in an unmanaged securities index on that date.
The performance of the Fund's Class A shares shown in the line graph takes into
account the maximum initial sales charge. The Fund's performance in this chart
and the performance table assumes reinvestment of dividends and capital gain
distributions but does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or on the redemption of Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Foreign Common Stock 99.2%
Cash Equivalent 0.8%
100.0%
111
OLD MUTUAL CLAY FINLAY CHINA FUND - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 91.1%
Agricultural Chemicals - 1.7%
Sinofert Holdings 1,698,000 $ 1,171
--------------
Total Agricultural Chemicals 1,171
- ---------------------------------------------------------------------
Airlines - 1.1%
Air China, Cl H 850,000 749
--------------
Total Airlines 749
- ---------------------------------------------------------------------
Apparel Manufacturers - 1.0%
Makalot Industrial 221,408 651
--------------
Total Apparel Manufacturers 651
- ---------------------------------------------------------------------
Appliances - 0.8%
Aupu Group Holding 1,408,000 563
--------------
Total Appliances 563
- ---------------------------------------------------------------------
Athletic Footwear - 0.9%
China Hongxing Sports 1,234,000 637
--------------
Total Athletic Footwear 637
- ---------------------------------------------------------------------
Auto/Truck Parts & Equipment-Original - 1.6%
Minth Group 664,000 1,070
--------------
Total Auto/Truck Parts & Equipment-Original 1,070
- ---------------------------------------------------------------------
Building & Construction-Miscellaneous - 0.5%
China National Building Material,
Cl H 160,000 334
--------------
Total Building & Construction-Miscellaneous 334
- ---------------------------------------------------------------------
Cellular Telecommunications - 7.2%
China Mobile 421,500 4,843
--------------
Total Cellular Telecommunications 4,843
- ---------------------------------------------------------------------
Chemicals-Specialty - 1.0%
EcoGreen Fine Chemicals Group 1,400,000 656
--------------
Total Chemicals-Specialty 656
- ---------------------------------------------------------------------
Coal - 1.0%
China Shenhua Energy, Cl H 168,000 660
--------------
Total Coal 660
- ---------------------------------------------------------------------
Commercial Banks Non-US - 10.9%
Bank of East Asia 135,600 810
China Construction Bank, Cl H 3,898,000 2,890
Industrial & Commercial
Bank of China, Cl H 5,904,000 3,599
--------------
Total Commercial Banks Non-US 7,299
- ---------------------------------------------------------------------
Computers - 0.7%
Lenovo Group 676,000 448
--------------
Total Computers 448
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Disposable Medical Products - 2.6%
Shandong Weigao Group
Medical Polymer, Cl H 716,000 $ 1,778
--------------
Total Disposable Medical Products 1,778
- ---------------------------------------------------------------------
Diversified Operations - 5.1%
Beijing Enterprises Holdings 150,000 640
C C Land Holdings 1,306,000 1,583
China Resources Enterprise 302,000 1,196
--------------
Total Diversified Operations 3,419
- ---------------------------------------------------------------------
Electric-Generation - 1.0%
Huaneng Power International, Cl H 598,000 675
--------------
Total Electric-Generation 675
- ---------------------------------------------------------------------
Feminine Health Care Products - 0.8%
Hengan International Group 164,000 551
--------------
Total Feminine Health Care Products 551
- ---------------------------------------------------------------------
Food-Miscellaneous/Diversified - 0.4%
China Foods 452,000 298
--------------
Total Food-Miscellaneous/Diversified 298
- ---------------------------------------------------------------------
Life/Health Insurance - 7.7%
China Life Insurance, Cl H 1,204,000 5,194
--------------
Total Life/Health Insurance 5,194
- ---------------------------------------------------------------------
Lighting Products & Systems - 2.1%
Neo-Neon Holdings* 680,000 1,389
--------------
Total Lighting Products & Systems 1,389
- ---------------------------------------------------------------------
Machinery-Construction & Mining - 0.9%
China Infrastructure Machinery
Holdings 274,000 610
--------------
Total Machinery-Construction & Mining 610
- ---------------------------------------------------------------------
Medical-Biomedical/Genetic - 1.7%
Mingyuan Medicare Development 5,650,000 1,133
--------------
Total Medical-Biomedical/Genetic 1,133
- ---------------------------------------------------------------------
Metal-Aluminum - 1.8%
Midas Holdings 1,430,000 1,178
--------------
Total Metal-Aluminum 1,178
- ---------------------------------------------------------------------
Metal-Iron - 2.7%
China Metal International Holdings 4,036,000 1,782
--------------
Total Metal-Iron 1,782
- ---------------------------------------------------------------------
Multi-Line Insurance - 5.1%
China Insurance International
Holdings* 227,000 547
Ping An Insurance Group, Cl H 336,500 2,873
--------------
Total Multi-Line Insurance 3,420
- ---------------------------------------------------------------------
112
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Non-Hazardous Waste Disposal - 0.8%
China Water Affairs Group* 826,000 $ 544
--------------
Total Non-Hazardous Waste Disposal 544
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - 4.0%
CNOOC 2,271,000 2,703
--------------
Total Oil Companies-Exploration & Production 2,703
- ---------------------------------------------------------------------
Oil Companies-Integrated - 5.4%
China Petroleum & Chemical, Cl H 1,334,000 1,416
PetroChina ADR 15,000 2,209
--------------
Total Oil Companies-Integrated 3,625
- ---------------------------------------------------------------------
Paper & Related Products - 1.5%
Lee & Man Paper Manufacturing 238,000 1,014
--------------
Total Paper & Related Products 1,014
- ---------------------------------------------------------------------
Real Estate Operation/Development - 6.8%
Cheung Kong Holdings 42,000 589
China Everbright International 2,971,000 1,163
Far East Consortium 1,676,000 806
Hang Lung Properties 199,000 732
Shun Tak Holdings 604,000 933
Sino Land 150,000 334
--------------
Total Real Estate Operation/Development 4,557
- ---------------------------------------------------------------------
Retail-Apparel/Shoe - 0.9%
Belle International Holdings* 500,000 581
--------------
Total Retail-Apparel/Shoe 581
- ---------------------------------------------------------------------
Retail-Hypermarkets - 0.0%
Wumart Stores, Cl H (B) 252,000 -
--------------
Total Retail-Hypermarkets -
- ---------------------------------------------------------------------
Retail-Major Department Store - 2.0%
Lifestyle International Holdings 166,000 661
Parkson Retail Group 88,500 662
--------------
Total Retail-Major Department Store 1,323
- ---------------------------------------------------------------------
Retail-Perfume & Cosmetics - 0.6%
Sa Sa International Holdings 1,158,000 421
--------------
Total Retail-Perfume & Cosmetics 421
- ---------------------------------------------------------------------
Retail-Regional Department Store - 1.0%
Golden Eagle Retail Group 753,000 654
--------------
Total Retail-Regional Department Store 654
- ---------------------------------------------------------------------
Shipbuilding - 0.6%
Yangzijiang Shipbuilding Holdings* 325,000 418
--------------
Total Shipbuilding 418
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Telecommunications Equipment - 1.5%
Vtech Holdings 111,000 $ 984
--------------
Total Telecommunications Equipment 984
- ---------------------------------------------------------------------
Telecommunications Services - 2.2%
China Telecom, Cl H 2,550,000 1,476
--------------
Total Telecommunications Services 1,476
- ---------------------------------------------------------------------
Transport-Services - 0.9%
Tianjin Port Development Holdings 772,000 616
--------------
Total Transport-Services 616
- ---------------------------------------------------------------------
Water Treatment Systems - 2.6%
Xinjiang Tianye Water Saving
Irrigation System, Cl H 3,404,000 1,766
--------------
Total Water Treatment Systems 1,766
--------------
Total Common Stock (Cost $47,819) 61,190
- ---------------------------------------------------------------------
Money Market Fund - 0.7%
Morgan Stanley Institutional
Liquidity Funds, Prime Portfolio,
Institutional Class 5.29% (C) 486,948 487
--------------
Total Money Market Fund (Cost $487) 487
- ---------------------------------------------------------------------
Total Investments - 91.8% (Cost $48,306) 61,677
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net - 8.2% 5,476
- ---------------------------------------------------------------------
Total Net Assets - 100.0% $ 67,153
- ---------------------------------------------------------------------
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
113
OLD MUTUAL CLAY FINLAY EMERGING MARKETS FUND
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Sub-Advisor: Clay Finlay Inc.
Performance Highlights
o During the one-year period ended July 31, 2007, the Fund's Class A shares
gained 46.67% at net asset value, underperforming the Index, which returned
50.49% for the same time period.
o Countries such as Russia, Mexico and Hong Kong contributed positively to
relative performance during the period while Brazil, South Korea and the
Philippines detracted from relative results.
o Individual stocks that contributed to the Fund's strong absolute
performance included Indiabulls Financial Services (no longer a Fund
holding), Porto Seguro and Hon Hai Precision.
o Stocks that detracted from the Fund's strong absolute performance during
the period included Russian oil producer Surgutneftegaz (no longer a Fund
holding), Taiwanese fitness equipment manufacturer Johnson Health Tech (no
longer a Fund holding) and network equipment manufacturer Alpha Networks.
Q. How did the Fund perform relative to its benchmark?
A. During the one-year period ended July 31, 2007, the Old Mutual Clay Finlay
Emerging Markets Fund's (the "Fund") Class A shares gained 46.67% at net
asset value, underperforming the MSCI Emerging Markets Index (the "Index"),
which returned 50.49% for the same time period. Performance for all share
classes can be found on page 116.
Q. What investment environment did the Fund face during the past year?
A. Emerging markets continued to produce strong performance during the period.
Global growth accelerated and investors became increasingly comfortable
with the risks associated with investing in emerging markets. Investment in
infrastructure within emerging-market countries boomed, resulting in
notable performance by the industrials and materials sectors. Despite
concerns about a potential bubble in the domestic Chinese A-share equity
markets, Chinese shares rallied as economic growth in China continued to
lead the world.
Q. Which market factors influenced the Fund's relative performance?
A. Despite the Fund's strong performance during the period, it underperformed
slightly relative to the Index. This underperformance was due in part to
Clay Finlay Inc.'s ("Clay Finlay") emphasis on reasonably valued companies
with long-term sustainable earnings growth, which resulted in an overweight
relative to the Index in underperforming sectors such as health care. Clay
Finlay's emphasis resulted in an underweight of leading sectors, such as
materials and industrials, as the sub-advisor viewed the risk of these more
cyclical sectors as outweighing the potential reward. Overall, however,
Clay Finlay notes that its investment process did work well in terms of
stock selection for information technology and financials, where the firm
believes it was able to identify strong opportunities in undervalued growth
companies.
Q. How did portfolio composition affect Fund performance?
A. Countries such as Russia, Mexico and Hong Kong contributed positively to
relative performance during the period. The Fund's underweight relative to
the Index in Russia and overweight in Mexico aided performance while stock
selection in Hong Kong also contributed to results. Individual stocks that
contributed to the Fund's strong absolute performance included Indiabulls
Financial Services (no longer a Fund holding), Porto Seguro and Hon Hai
Precision Industries. Indiabulls Financial Services, an Indian financial
services firm, benefited from an Indian stock market rally and exposure to
the booming Indian real estate market during the period. Porto Seguro, a
Brazilian property and casualty insurance firm, posted strong performance
due to its stock's low valuation, declining loss ratio and robust premium
growth. Taiwanese electronic contract manufacturer Hon Hai Precision
Industries benefited from a strong cost advantage in manufacturing which
resulted in increased market share and high earnings growth.
Brazil, South Korea and the Philippines detracted from relative performance
during the period. Stock selection in these countries hurt relative
results. Stocks that were detractive from the Fund's strong absolute
performance during the period included Russian oil producer Surgutneftegaz
(no longer a Fund holding), Taiwanese fitness equipment manufacturer
Johnson Health Tech (no longer a Fund holding) and network equipment
manufacturer Alpha Networks. Surgutneftegaz was hurt by the volatile oil
markets, increased taxation and concerns regarding political risk which,
combined, resulted in weak performance in the Russian energy sector.
Johnson Health Tech's stock price declined as weaker than expected demand
for fitness equipment in the United States led to excess inventory and
underperformance. Alpha Networks lost its competitive edge in the
networking equipment market during the period which resulted in
disappointing earnings.
Clay Finlay Emerging Markets Fund
114
Top Ten Holdings
as of July 31, 2007
Petroleo Brasileiro ADR 3.8%
- -------------------------------------------
Sberbank 2.6%
- -------------------------------------------
Banco Itau Holding
Financeira ADR 2.6%
- -------------------------------------------
Cia Vale do Rio Doce ADR 2.2%
- -------------------------------------------
Ayala 1.9%
- -------------------------------------------
Kasikornbank 1.9%
- -------------------------------------------
Novatek GDR 1.7%
- -------------------------------------------
Hon Hai Precision GDR 1.7%
- -------------------------------------------
Millicom International Cellular 1.7%
- -------------------------------------------
America Movil, Ser L ADR 1.6%
- -------------------------------------------
As a % of Total
Fund Investments 21.7%
- -------------------------------------------
Q. What is the investment outlook for emerging-market stocks?
A. Clay Finlay is optimistic regarding the outlook for gross domestic product
growth in emerging markets and believes the market is positioned for
continued robust corporate earnings growth. Valuations have increased in
recent years, and the sub- advisor expects future market gains to be more
in-line with earnings growth. Clay Finlay also notes the potential added
benefit of currency strength, given strong economic fundamentals in many
emerging-market countries.
Clay Finlay believes there is a possibility that higher levels of
volatility and the impact of greater investor risk aversion may weigh on
emerging markets through the end of 2007. Clay Finlay is also mindful of
the risks of U.S. protectionist legislation and weaker U.S. demand for
emerging-market exports, though the firm believes domestic demand in most
emerging countries will support economic growth. Finally, Clay Finlay is
closely monitoring inflation risk in emerging economies, including China.
Clay Finlay Emerging Markets Fund
115
OLD MUTUAL CLAY FINLAY EMERGING MARKETS FUND - continued
- --------------------------------------------------------------------------------
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- -------------------------------------------------------------------------------------------------------
Annualized
1 Year Since
Inception Date Return Inception
- -------------------------------------------------------------------------------------------------------
Class A with front-end load 12/30/05 38.19% 30.84%
Class A without load 12/30/05 46.67% 35.82%
Class C with deferred sales load 12/30/05 44.70% 34.94%
Class C without deferred sales load 12/30/05 45.70% 34.94%
Class Z 12/30/05 47.04% 36.19%
Institutional Class 12/30/05 47.79% 36.86%
MSCI Emerging Markets Index 12/30/05 50.49% 36.44%
- -------------------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative index can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
4.53% and 2.10%; 5.28% and 2.85%; 4.28% and 1.85%; 4.28% and 1.35%,
respectively. Expenses for Class A, C, and Z shares are based on estimated
amounts.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
12/30/05 7/31/06 7/31/07
Clay Finlay Emerging Markets Fund, Institutional Class $10,000 $11,130 $16,450
Clay Finlay Emerging Markets Fund, Class Z $10,000 $11,100 $16,321
Clay Finlay Emerging Markets Fund, Class A $9,425 $10,444 $15,319
Clay Finlay Emerging Markets Fund, Class C $10,000 $11,039 $16,085
MSCI Emerging Markets Index $10,000 $10,869 $16,357
Past performance is not a guarantee of future results. The graph above compares
an investment made in each of the Fund's share classes on the inception date of
12/30/05 to an investment made in an unmanaged securities index on that date.
The performance of the Fund's Class A shares shown in the line graph takes into
account the maximum initial sales charge. The Fund's performance in this chart
and the performance table assumes reinvestment of dividends and capital gain
distributions but does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or on the redemption of Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Foreign Stock 56.8%
Common Stock 28.9%
Cash Equivalent 3.3%
Warrants 11.0%
100.0%
116
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 28.6%
Advertising Sales - 1.1%
Focus Media Holding ADR* 2,900 $ 120
--------------
Total Advertising Sales 120
- ---------------------------------------------------------------------
Brewery - 1.1%
Cia Cervecerias Unidas ADR 3,490 130
--------------
Total Brewery 130
- ---------------------------------------------------------------------
Building & Construction-Miscellaneous - 1.2%
Orascom Construction Industries GDR 960 135
--------------
Total Building & Construction-Miscellaneous 135
- ---------------------------------------------------------------------
Cellular Telecommunications - 4.4%
America Movil, Ser L ADR 2,900 174
Millicom International Cellular* 2,320 186
Tim Participacoes ADR 4,100 142
--------------
Total Cellular Telecommunications 502
- ---------------------------------------------------------------------
Commercial Banks Non-US - 3.0%
Banco Itau Holding Financeira ADR 6,200 284
Kazkommertsbank GDR* 3,000 54
--------------
Total Commercial Banks Non-US 338
- ---------------------------------------------------------------------
Commercial Services - 1.0%
eTelecare Global Solutions ADR* 7,530 115
--------------
Total Commercial Services 115
- ---------------------------------------------------------------------
Diversified Minerals - 2.2%
Cia Vale do Rio Doce ADR 5,000 245
--------------
Total Diversified Minerals 245
- ---------------------------------------------------------------------
Electronic Components-Miscellaneous - 2.7%
AU Optronics ADR 7,000 119
Hon Hai Precision GDR 11,360 188
--------------
Total Electronic Components-Miscellaneous 307
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - 1.1%
Samsung Electronics GDR 144A 380 125
--------------
Total Electronic Components-Semiconductors 125
- ---------------------------------------------------------------------
Food-Dairy Products - 1.4%
Wimm-Bill-Dann Foods ADR 1,625 153
--------------
Total Food-Dairy Products 153
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Food-Retail - 1.1%
X5 Retail Group GDR* 3,900 $ 121
--------------
Total Food-Retail 121
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - 1.0%
Gazprom ADR 2,500 107
--------------
Total Oil Companies-Exploration & Production 107
- ---------------------------------------------------------------------
Oil Companies-Integrated - 5.0%
LUKOIL ADR 1,700 138
Petroleo Brasileiro ADR 6,460 419
--------------
Total Oil Companies-Integrated 557
- ---------------------------------------------------------------------
Power Conversion/Supply Equipment - 1.1%
Delta Electronics GDR 6,006 118
--------------
Total Power Conversion/Supply Equipment 118
- ---------------------------------------------------------------------
Steel Pipe & Tube - 1.2%
TMK GDR 144A 3,300 133
Total Steel Pipe & Tube 133
--------------
Total Common Stock (Cost $2,639) 3,206
- ---------------------------------------------------------------------
Foreign Common Stock - 56.1%
Brazil - 6.8%
Banco do Brasil 8,100 128
Gafisa 9,600 152
Kroton Educacional* 5,050 114
Localiza Rent A Car 11,700 120
Porto Seguro 3,500 134
Submarino* 2,600 110
--------------
Total Brazil 758
- ---------------------------------------------------------------------
China - 1.3%
Industrial & Commercial Bank of
China, Cl H 235,000 143
--------------
Total China 143
- ---------------------------------------------------------------------
Hong Kong - 5.9%
China Everbright International 318,000 124
China Mobile 13,000 149
China Resources Enterprise 40,000 158
CNOOC 102,000 121
Kingdee International Software
Group 118,000 117
--------------
Total Hong Kong 669
- ---------------------------------------------------------------------
117
OLD MUTUAL CLAY FINLAY EMERGING MARKETS FUND - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Indonesia - 4.5%
Astra International 57,000 $ 114
Bank Niaga 670,000 67
Bank Rakyat Indonesia 204,000 136
Ciputra Development* 1,061,000 104
Ramayana Lestari Sentosa 855,000 89
--------------
Total Indonesia 510
- ---------------------------------------------------------------------
Malaysia - 3.1%
Genting 46,800 107
SP Setia 48,000 118
WCT Engineering 64,000 121
--------------
Total Malaysia 346
- ---------------------------------------------------------------------
Mexico - 1.1%
GEO SA de CV, Ser B* 23,000 126
--------------
Total Mexico 126
- ---------------------------------------------------------------------
Philippines - 4.4%
Ayala 18,240 211
Jollibee Foods 34,000 36
Union Bank of Philippines 112,900 150
Universal Robina 262,000 93
--------------
Total Philippines 490
- ---------------------------------------------------------------------
Russia - 6.7%
Novatek GDR 3,600 192
Pharmstandard* 2,110 127
Sberbank* 73,000 293
Unified Energy System* 105,000 143
--------------
Total Russia 755
- ---------------------------------------------------------------------
South Africa - 5.2%
Anglo Platinum 611 84
MTN Group 12,000 169
Standard Bank Group 11,000 157
Truworths International 33,200 168
--------------
Total South Africa 578
- ---------------------------------------------------------------------
South Korea - 6.8%
Daegu Bank 7,000 137
Hynix Semiconductor* 2,750 111
Lotte Shopping 270 105
Osstem Implant* 2,700 112
Samsung Electronics 250 165
SSCP* 4,400 135
--------------
Total South Korea 765
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Taiwan - 2.6%
Alpha Networks 1 $ -
Powertech Technology* 32,000 149
TXC 60,799 138
--------------
Total Taiwan 287
- ---------------------------------------------------------------------
Thailand - 4.3%
CP Seven Eleven 453,000 160
Home Product Center 729,000 115
Kasikornbank 86,000 207
--------------
Total Thailand 482
- ---------------------------------------------------------------------
Turkey - 3.4%
Asya Katilim Bankasi* 15,700 106
Bim Birlesik Magazalar 1,700 114
Coca-Cola Icecek 17,200 157
--------------
Total Turkey 377
--------------
Total Foreign Common Stock (Cost $5,226) 6,286
- ---------------------------------------------------------------------
Warrants - 10.9%
Asian Paints 144A, expires
06/15/09* 7,400 166
Bharet Heavy Electricals 144A,
expires 05/12/08* 4,900 211
Grasim Industries 144A,
expires 05/22/09* 1,650 121
Infosys Technology 144A, 08/21/09* 4,700 231
IVRCL Infrastructures & Projects 144A,
expires 11/17/08* 24,400 235
Nicholas Piramal India 144A,
expires 10/26/09* 21,600 145
Taiwan Semiconductor 144A,
expires 02/01/12* 220 1
Tianjin Port 144A, expires
08/04/09* 132,000 107
--------------
Total Warrants (Cost $1,034) 1,217
- ---------------------------------------------------------------------
Money Market Fund - 3.3%
Morgan Stanley Institutional
Liquidity Funds, Prime Portfolio,
Institutional Class 5.29% (C) 367,499 367
--------------
Total Money Market Fund (Cost $367) 367
- ---------------------------------------------------------------------
Total Investments - 98.9% (Cost $9,266) 11,076
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net - 1.1% 118
- ---------------------------------------------------------------------
Total Net Assets - 100.0% $ 11,194
- ---------------------------------------------------------------------
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
118
OLD MUTUAL COPPER ROCK EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Sub-Advisor: Copper Rock Capital Partners, LLC
Performance Highlights
o For the one-year period ended July 31, 2007, the Fund outperformed the
Index. The Fund's Class A shares gained 22.62% at net asset value for the
one-year period while the Index returned 16.83%.
o Stock selection in the information technology, telecommunications services
and financials sectors contributed positively to the Fund's performance.
o Stock selection in the health care sector, a relative overweight in energy
and a lack of exposure in materials negatively impacted Fund performance
during the period.
o Individual stocks that contributed to the Fund's strong absolute gains
included Cogent Communications Group (no longer a Fund holding), CommScope
and Cbeyond.
o Stocks that detracted from performance during the period included
Healthways (no longer a Fund holding), Christopher & Banks (no longer a
Fund holding) and ESCO Technologies (no longer a Fund holding).
Q. How did the Fund perform relative to its benchmark?
A. For the one-year period ended July 31, 2007, the Old Mutual Copper Rock
Emerging Growth Fund (the "Fund") outperformed its benchmark, the Russell
2000(R) Growth Index (the "Index"). The Fund's Class A shares gained 22.62%
at net asset value for the one-year period while the Russell 2000(R) Growth
Index returned 16.83%. Performance for all share classes can be found on
page 121.
Q. What investment environment did the Fund face during the past year?
A. The small-cap stock market was strong during the one-year period. The
beginning of the period through the summer was marked by investor concern
about inflation and higher interest rates. This was a time of above-average
volatility. Later in 2006, the market strengthened as commodity prices
declined. There were a few surprising elements, however, as the traditional
growth sectors were the worst performers while the slowest growth areas
were the strongest performers. This spelled "bad news" for true growth
investors on a relative basis. In fact, stocks with the slowest projected
growth rates performed significantly better than stocks with the highest
projected growth rates.
When 2007 came around, though, there was a shift whereby growth finally
started to outperform value. U.S. equity markets stabilized by the
beginning of the second quarter of 2007 after experiencing significant
volatility in February and early March. Value stocks had outperformed
growth companies by a large margin in 2006, but this trend was reversed at
the end of the first quarter of 2007. During the second quarter of 2007,
faster growing companies solidified their leadership over value stocks and
slower growing companies and were the clear winners in the small-cap
sector.
Q. Which market factors influenced the Fund's relative performance?
A. Despite the market volatility of the last half of 2006 and early 2007,
Copper Rock Capital Partners, LLC ("Copper Rock") was able to identify
stocks that were ultimately rewarded during the overall period. The Fund
reduced its exposure to interest rate and energy price sensitive areas,
such as retail and restaurants, and found growth opportunities in areas
like telecommunications and information technology, which benefited from
the expansion of broadband, cabling and demand for faster content reception
and video over the Internet. Copper Rock also identified investment
opportunities in the energy sector where companies benefited from the
demand for global infrastructure build out.
Q. How did portfolio composition affect Fund performance?
A. Stock selection was the predominant driver of the Fund's outperformance
during the fiscal year. Stock selection in the information technology,
telecommunications services and financials sectors contributed positively
to the Fund's performance. Stock selection in the health care sector, a
relative overweight in energy and a lack of exposure in materials
negatively impacted Fund performance during the period.
Individual stocks that contributed to the Fund's strong absolute gains
included Cogent Communications Group (no longer a Fund holding), CommScope
and Cbeyond. Internet service provider Cogent Communications Group
experienced increased revenues since early 2006. The firm's proprietary
technology is capitalizing on the expanding use of virtual networks that
allow corporations to operate efficiently in multiple locations. CommScope,
a provider of cabling and connectivity solutions, benefited from the
expansion of cable/broadband networks to enable video over the Internet and
the ability to raise prices for the first time in six years. Cbeyond
provides voice and broadband Internet services to small businesses. The
company, which emphasizes organic growth, has a very measurable execution
plan and recently entered its seventh and eighth markets. The company lost
ground in early 2007 and, after meeting with management, Copper Rock
decided that the stock still had potential and added to the Fund's
position. In April, Cbeyond's price rose as investors gained confidence in
the company.
Copper Rock Emerging Growth Fund
119
OLD MUTUAL COPPER ROCK EMERGING GROWTH FUND - continued
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Sub-Advisor: Copper Rock Capital Partners,LLC
Top Ten Holdings
as of July 31, 2007
B/E Aerospace 3.0%
- -------------------------------------------
Affiliated Managers Group 2.7%
- -------------------------------------------
DealerTrack Holdings 2.6%
- -------------------------------------------
Psychiatric Solutions 2.6%
- -------------------------------------------
Pinnacle Entertainment 2.4%
- -------------------------------------------
Strayer Education 1.9%
- -------------------------------------------
Perficient 1.8%
- -------------------------------------------
Ladish 1.8%
- -------------------------------------------
Itron 1.8%
- -------------------------------------------
Time Warner Telecom, Cl A 1.7%
- -------------------------------------------
As a % of Total
Fund Investments 22.3%
- -------------------------------------------
Stocks that detracted from performance during the period included
Healthways (no longer a Fund holding), Christopher & Banks (no longer a
Fund holding) and ESCO Technologies (no longer a Fund holding). Healthways
is a provider of disease management solutions. The firm's investment thesis
is based largely on the success of the Medicare Disease Management pilot
program. The thesis broke down when the patient population turned out to be
sicker than first thought. This, coupled with a questionable acquisition,
caused the stock to lose value and Copper Rock sold the position. Women's
apparel retailer Christopher & Banks, benefited from strong sales through
much of 2006. Clothing for the 2006 holiday season, however, did not meet
customer expectations and early inventory markdowns impacted performance.
Copper Rock sold this position due to deteriorating fundamentals. ESCO
Technologies, a developer and manufacturer of filtration devices/services
and meter management systems, was not able to meet forecasted contracts.
Copper Rock sold this position due to deteriorating fundamentals.
Q. What is the investment outlook for the small-cap growth market?
A. Though it seems the Federal Reserve's ("Fed") interest rate hikes may have
come to a near-term end, a Fed rate cut is probably not imminent in Copper
Rock's view. The sub-advisor does, however, believe a rate reduction is
possible in 2008. Though energy prices have climbed over the past several
months, Copper Rock does not believe these costs will have a significant
impact on the Fund in the short term. The Fund has limited exposure to
areas that are particularly susceptible to higher gas prices, such as
retailers and restaurants.
While some market analysts have predicted that small-cap stocks will
underperform large-cap stocks, a mid-cycle economic slowdown has
historically been a time when smaller growth companies have garnered
attention. Investors seeking growth typically turn to the small- and
mid-cap areas. Overall, the small-cap universe appears attractive in Copper
Rock's view. The firm believes small- and mid-cap valuations are reasonable
and that there is an array of high quality small-cap growth investment
opportunities. The firm notes that several companies have either recently
gone public or are positioned to shine. Copper Rock believes that the
small-cap growth backdrop should remain favorable as long as capital costs
remain at current levels for small businesses.
The Fund currently holds an overweight position in technology and
telecommunications services as the sub-advisor continues to find
attractive, faster growing companies capitalizing on opportunities in the
broadband, cabling and semiconductor areas. The Fund also maintains an
overweight relative to the Index in the energy sector. Copper Rock is
optimistic about its health care holdings, but continues to have a slight
underweight relative to the Index overall. Though performance catalysts for
some of its health care holdings may take a couple of quarters to play out,
Copper Rock believes that potential drivers such as research results will
be favorable in the long term.
Copper Rock Emerging Growth Fund
120
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- ------------------------------------------------------------------------------------------------------------------------------------
Annualized
Inception 1 Year Since
Date* Return Inception
- ------------------------------------------------------------------------------------------------------------------------------------
Class A with front-end load 07/29/05 15.59% 10.24%
Class A without load 07/29/05 22.62% 13.54%
Class C with deferred sales load 07/29/05 20.76% 12.66%
Class C without deferred sales load 07/29/05 21.76% 12.66%
Class Z 12/09/05 22.94% 13.99%
Institutional Class 07/29/05 23.20% 14.02%
Russell 2000(R) Growth Index 07/29/05 16.83% 8.89%
- ------------------------------------------------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative index can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
2.97% and 1.55%; 3.72% and 2.30%; 2.72% and 1.30%; 1.71% and 1.10%,
respectively. Expenses for Class C and Z shares are based on estimated amounts.
*The inception date of each share class represents the date initial seed capital
was invested by Old Mutual Capital, Inc. The effective date the share classes
were available for sale to shareholders was 08/01/05 for Class A, Class C and
Institutional Class, and 12/16/05 for Class Z.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
7/29/05 7/31/06 7/31/07
Copper Rock Emerging Growth, Institutional Class $10,000 $10,560 $13,010
Copper Rock Emerging Growth, Class A $9,425 $9,915 $12,158
Copper Rock Emerging Growth, Class C $10,000 $10,430 $12,700
Russell 2000 Growth Index $10,000 $10,153 $11,862
Past performance is not a guarantee of future results. The graph above compares
an investment made in the Fund's Class A, C and Institutional shares on the
inception date of 7/29/05 to an investment made in an unmanaged securities index
on that date. The performance of the Fund's Class A shares shown in the line
graph takes into account the maximum initial sales charge. The Fund's
performance in this chart and the performance table assumes reinvestment of
dividends and capital gain distributions but does not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or on the redemption of
Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Common Stock 93.8%
Cash Equivalent 2.8%
Investment Company 3.4%
100.0%
121
OLD MUTUAL COPPER ROCK EMERGING GROWTH FUND - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 94.0%
Aerospace/Defense-Equipment - 3.0%
B/E Aerospace* 77,362 $ 3,138
--------------
Total Aerospace/Defense-Equipment 3,138
- ---------------------------------------------------------------------
Apparel Manufacturers - 0.2%
Gymboree* 5,023 216
--------------
Total Apparel Manufacturers 216
- ---------------------------------------------------------------------
Applications Software - 1.5%
Nuance Communications* 47,475 782
Visual Sciences* 47,012 800
--------------
Total Applications Software 1,582
- ---------------------------------------------------------------------
Auction House/Art Dealer - 1.4%
Sotheby's 34,395 1,470
--------------
Total Auction House/Art Dealer 1,470
- ---------------------------------------------------------------------
Audio/Video Products - 0.5%
DTS* 23,585 494
--------------
Total Audio/Video Products 494
- ---------------------------------------------------------------------
Auto/Truck Parts & Equipment-Original - 0.6%
Amerigon* 40,507 651
--------------
Total Auto/Truck Parts & Equipment-Original 651
- ---------------------------------------------------------------------
Commercial Banks-Western US - 0.1%
Community Bancorp* 4,877 114
--------------
Total Commercial Banks-Western US 114
- ---------------------------------------------------------------------
Commercial Services - 0.9%
ExlService Holdings* 55,657 941
--------------
Total Commercial Services 941
- ---------------------------------------------------------------------
Computer Services - 0.8%
Syntel 22,890 824
--------------
Total Computer Services 824
- ---------------------------------------------------------------------
Computer Software - 2.4%
Double-Take Software* 76,240 1,164
Omniture* 56,150 1,283
--------------
Total Computer Software 2,447
- ---------------------------------------------------------------------
Computers-Integrated Systems - 0.5%
Riverbed Technology* 12,115 535
--------------
Total Computers-Integrated Systems 535
- ---------------------------------------------------------------------
Consulting Services - 3.8%
Advisory Board* 25,595 1,318
FTI Consulting* 37,688 1,546
Huron Consulting Group* 15,352 1,043
--------------
Total Consulting Services 3,907
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Data Processing/Management - 1.1%
Commvault Systems* 69,145 $ 1,174
--------------
Total Data Processing/Management 1,174
- ---------------------------------------------------------------------
E-Commerce/Products - 0.9%
Blue Nile* 12,660 957
--------------
Total E-Commerce/Products 957
- ---------------------------------------------------------------------
E-Commerce/Services - 1.0%
Priceline.com* 16,030 1,023
--------------
Total E-Commerce/Services 1,023
- ---------------------------------------------------------------------
E-Services/Consulting - 2.7%
GSI Commerce* 40,025 891
Perficient* 95,757 1,893
--------------
Total E-Services/Consulting 2,784
- ---------------------------------------------------------------------
Educational Software - 1.3%
Blackboard* 30,685 1,357
--------------
Total Educational Software 1,357
- ---------------------------------------------------------------------
Electronic Components-Semiconductors - 1.7%
Netlogic Microsystems* 42,105 1,283
Volterra Semiconductor* 41,640 479
--------------
Total Electronic Components-Semiconductors 1,762
- ---------------------------------------------------------------------
Electronic Design Automation - 2.0%
Comtech Group* 87,980 1,251
Magma Design Automation* 58,210 862
--------------
Total Electronic Design Automation 2,113
- ---------------------------------------------------------------------
Electronic Measuring Instruments - 1.8%
Itron* 23,180 1,841
--------------
Total Electronic Measuring Instruments 1,841
- ---------------------------------------------------------------------
Electronic Security Devices - 0.8%
Taser International* 53,755 821
--------------
Total Electronic Security Devices 821
- ---------------------------------------------------------------------
Energy-Alternate Sources - 0.6%
Evergreen Solar* 69,800 582
--------------
Total Energy-Alternate Sources 582
- ---------------------------------------------------------------------
Enterprise Software/Services - 2.5%
Concur Technologies* 36,536 872
Taleo, Cl A* 26,971 580
Ultimate Software Group* 42,565 1,155
--------------
Total Enterprise Software/Services 2,607
- ---------------------------------------------------------------------
Entertainment Software - 1.3%
THQ* 45,035 1,295
--------------
Total Entertainment Software 1,295
- ---------------------------------------------------------------------
122
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Finance-Other Services - 1.0%
GFI Group* 13,405 $ 999
--------------
Total Finance-Other Services 999
- ---------------------------------------------------------------------
Food-Miscellaneous/Diversified - 0.8%
SunOpta* 70,000 789
--------------
Total Food-Miscellaneous/Diversified 789
- ---------------------------------------------------------------------
Gambling (Non-Hotel) - 2.4%
Pinnacle Entertainment* 94,910 2,516
--------------
Total Gambling (Non-Hotel) 2,516
- ---------------------------------------------------------------------
Human Resources - 0.8%
Kenexa* 23,589 844
--------------
Total Human Resources 844
- ---------------------------------------------------------------------
Import/Export - 0.3%
Castle Brands* 55,093 265
--------------
Total Import/Export 265
- ---------------------------------------------------------------------
Industrial Audio & Video Products - 0.8%
SRS Labs* 75,776 875
--------------
Total Industrial Audio & Video Products 875
- ---------------------------------------------------------------------
Internet Application Software - 3.2%
DealerTrack Holdings* 75,931 2,738
Vocus* 21,353 600
--------------
Total Internet Application Software 3,338
- ---------------------------------------------------------------------
Internet Financial Services - 2.6%
Authorize.net Holdings* 80,955 1,403
Online Resources* 21,925 1,333
--------------
Total Internet Financial Services 2,736
- ---------------------------------------------------------------------
Internet Infrastructure Software - 2.0%
Opsware* 14,967 1,621
Radvision Limited* 28,020 479
--------------
Total Internet Infrastructure Software 2,100
- ---------------------------------------------------------------------
Investment Management/Advisory Services - 2.7%
Affiliated Managers Group* 24,705 2,792
--------------
Total Investment Management/Advisory Services 2,792
- ---------------------------------------------------------------------
Medical Imaging Systems - 0.6%
IRIS International* 39,138 623
--------------
Total Medical Imaging Systems 623
- ---------------------------------------------------------------------
Medical Instruments - 3.2%
Abaxis* 38,232 696
Conceptus* 106,630 1,727
Micrus Endovascular* 37,441 881
--------------
Total Medical Instruments 3,304
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Medical-Biomedical/Genetic - 2.3%
Keryx Biopharmaceuticals* 87,745 $ 755
Lifecell* 53,550 1,643
--------------
Total Medical-Biomedical/Genetic 2,398
- ---------------------------------------------------------------------
Medical-Drugs - 2.2%
Indevus Pharmaceuticals* 113,155 802
Medicis Pharmaceutical, Cl A 22,400 639
Santarus* 169,318 813
--------------
Total Medical-Drugs 2,254
- ---------------------------------------------------------------------
Medical-Nursing Homes - 0.7%
Skilled Healthcare Group, Cl A* 48,800 678
--------------
Total Medical-Nursing Homes 678
- ---------------------------------------------------------------------
Medical-Outpatient/Home Medical - 1.5%
Radiation Therapy Services* 54,170 1,531
--------------
Total Medical-Outpatient/Home Medical 1,531
- ---------------------------------------------------------------------
Metal Processors & Fabricators - 1.8%
Ladish* 38,854 1,884
--------------
Total Metal Processors & Fabricators 1,884
- ---------------------------------------------------------------------
Networking Products - 1.9%
Atheros Communications* 27,930 779
Switch & Data Facilities* 71,930 1,136
--------------
Total Networking Products 1,915
- ---------------------------------------------------------------------
Oil Companies-Exploration & Production - 3.1%
Arena Resources* 18,915 1,027
ATP Oil & Gas* 28,155 1,278
Parallel Petroleum* 44,525 907
--------------
Total Oil Companies-Exploration & Production 3,212
- ---------------------------------------------------------------------
Oil Field Machinery & Equipment - 2.9%
Dresser-Rand Group* 48,210 1,789
T-3 Energy Services* 36,150 1,254
--------------
Total Oil Field Machinery & Equipment 3,043
- ---------------------------------------------------------------------
Oil-Field Services - 1.1%
W-H Energy Services* 17,540 1,124
--------------
Total Oil-Field Services 1,124
- ---------------------------------------------------------------------
Physical Therapy/Rehabilitation Centers - 2.6%
Psychiatric Solutions* 78,156 2,664
--------------
Total Physical Therapy/Rehabilitation Centers 2,664
- ---------------------------------------------------------------------
Private Corrections - 0.8%
Geo Group* 31,600 874
--------------
Total Private Corrections 874
- ---------------------------------------------------------------------
123
OLD MUTUAL COPPER ROCK EMERGING GROWTH FUND - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Retail-Discount - 0.9%
Citi Trends* 28,607 $ 941
--------------
Total Retail-Discount 941
- ---------------------------------------------------------------------
Retail-Restaurants - 0.5%
BJ's Restaurants* 24,445 489
--------------
Total Retail-Restaurants 489
- ---------------------------------------------------------------------
Retail-Sporting Goods - 0.9%
Zumiez* 26,363 975
--------------
Total Retail-Sporting Goods 975
- ---------------------------------------------------------------------
Schools - 3.4%
Capella Education* 34,265 1,532
Strayer Education 13,095 1,984
--------------
Total Schools 3,516
- ---------------------------------------------------------------------
Semiconductor Equipment - 1.6%
Tessera Technologies* 40,735 1,675
--------------
Total Semiconductor Equipment 1,675
- ---------------------------------------------------------------------
Telecommunications Equipment - 1.5%
CommScope* 15,502 844
OpNext* 55,160 673
--------------
Total Telecommunications Equipment 1,517
- ---------------------------------------------------------------------
Telecommunications Services - 3.9%
Cbeyond* 19,515 690
Orbcomm* 100,421 1,540
Time Warner Telecom, Cl A* 92,100 1,801
--------------
Total Telecommunications Services 4,031
- ---------------------------------------------------------------------
Therapeutics - 1.1%
Theravance* 41,710 1,117
--------------
Total Therapeutics 1,117
- ---------------------------------------------------------------------
Transactional Software - 2.5%
Innerworkings* 102,973 1,375
VeriFone Holdings* 32,390 1,179
--------------
Total Transactional Software 2,554
- ---------------------------------------------------------------------
Web Hosting/Design - 1.2%
Equinix* 14,755 1,282
--------------
Total Web Hosting/Design 1,282
- ---------------------------------------------------------------------
Wireless Equipment - 1.4%
Novatel Wireless* 68,855 1,483
--------------
Total Wireless Equipment 1,483
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Wound, Burn & Skin Care - 0.4%
Obagi Medical Products* 27,370 $ 463
--------------
Total Wound, Burn & Skin Care 463
--------------
Total Common Stock (Cost $87,262) 97,436
- ---------------------------------------------------------------------
Investment Company - 3.4%
Index Fund'small Cap - 3.4%
iShares Russell 2000 Growth Index
Fund 42,690 3,499
--------------
Total Index Fund'small Cap 3,499
--------------
Total Investment Company (Cost $3,654) 3,499
- ---------------------------------------------------------------------
Money Market Fund - 2.8%
Evergreen Select Money Market Fund,
Institutional Class, 5.22% (C) 2,939,966 2,940
--------------
Total Money Market Fund (Cost $2,940) 2,940
- ---------------------------------------------------------------------
Total Investments - 100.2% (Cost $93,856) 103,875
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net - (0.2%) (251)
- ---------------------------------------------------------------------
Total Net Assets - 100.0% $ 103,624
- ---------------------------------------------------------------------
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
124
OLD MUTUAL INTERNATIONAL EQUITY FUND
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Sub-Advisors: Acadian Asset Management, Inc. and Clay Finlay Inc.
Performance Highlights
o The Fund outperformed its benchmark during the one-year period ended July
31, 2007. The Fund's Class A shares gained 28.02% at net asset value, while
the Index returned 23.91%.
o Stock selection in Japan and Austria, coupled with an overweight in
Germany, contributed positively to the Fund's performance relative to the
Index.
o Stocks held by the Fund in the United Kingdom and the Netherlands, as well
as an underweight in Spain, detracted from relative results.
o Individual stocks that contributed to the Fund's strong performance during
the one-year period included Austrian steel company Voestalpine, Japanese
gaming platform Nintendo and German machinery maker MAN.
o Stocks that detracted from the Fund's absolute gains included Mitsubishi
UFJ Financial Group, British Energy Group (no longer a Fund holding) and
Sanofi-Aventis.
Q. How did the Fund perform relative to its benchmark?
A. The Old Mutual International Equity Fund (the "Fund") outperformed its
benchmark during the one-year period ended July 31, 2007. The Fund's Class
A shares gained 28.02% at net asset value, while the MSCI EAFE(R) Index
(the "Index") returned 23.91%. Performance for all share classes can be
found on page 127.
Q. What investment environment did the Fund face during the past year?
A. The year ended July 31, 2007 produced strong double-digit returns for
international equity investors, despite a volatile investment environment
characterized by sharp market swings, including a drop in China that
triggered a global sell-off in late February/early March. Most markets
finished the period in positive territory demonstrating surprising
resilience to high energy prices, inflationary pressures and other global
concerns. The market became more risk-averse in late July, however, and
there were several market corrections. Concerns about global credit risk
plagued the market, after news broke about further hedge fund troubles and
the potential liquidation of a U.S. mortgage lender.
Looking at individual regions, equity performance in Europe was solid, as
moderate economic growth continued and corporate earnings generally met
expectations. U.S. dollar-stated returns were boosted by persistent
strength of the euro. Denmark, Portugal and Sweden posted notable gains.
The Asia-Pacific region saw positive returns on the whole for the period
but generally lagged other developed markets with the exception of the
strong returns generated by New Zealand, Australia and Hong Kong. Japan
trailed its Asian counterparts as household spending, industrial production
and wage growth slowed. A lower Japanese yen cut into returns for
U.S.-based investors.
Q. Which market factors influenced the Fund's relative performance?
A. Developed markets saw value stocks trail growth stocks marginally during
the period and smaller capitalization stocks performed better than large
caps. Acadian Asset Management, Inc.'s ("Acadian") portion of the Fund's
portfolio had a value orientation and a smaller capitalization profile than
the Index. The value orientation of Acadian's portion of the Fund faced a
moderate headwind, but the Fund benefited from its exposure to smaller cap
holdings. Clay Finlay Inc.'s ("Clay Finlay") portion of the Fund was well
positioned to benefit from the turmoil related to weakness in the U.S.
sub-prime space; an area that the sub-advisor believed had been at risk for
some time. As a result, the portion of the Fund sub-advised by Clay Finlay
held up well during the early 2007 market correction. Clay Finlay notes
that an underweight position in the materials sector in its portion of the
Fund detracted from performance, as increased demand from China helped
drive metals and mining stocks higher during the year. Currency was also a
detractor from relative performance in Clay Finlay's portion of the Fund's
management, due to the Fund's underweight positions in the United Kingdom
and Australia, as the U.S. dollar weakened by nearly 10% relative to the
U.K. sterling, and by 15% relative to the Australian dollar.
Q. How did portfolio composition affect Fund performance?
A. Stock selection in Japan and Austria, coupled with an overweight in
Germany, contributed positively to the Fund's performance relative to the
Index. Meanwhile stocks held by the Fund in the United Kingdom and the
Netherlands, as well as an underweight in Spain, detracted from relative
results.
Individual stocks that contributed to the Fund's strong performance during
the one-year period included Austrian steel company Voestalpine, Japanese
gaming platform Nintendo and German machinery maker MAN. Analysts upgraded
earnings estimates for Voestalpine following the steelmaker's successful
takeover of local competitor Boehler-Uddeholm. Nintendo's Wii game platform
was a spectacular success, powering
International Equity Fund
125
OLD MUTUAL INTERNATIONAL EQUITY FUND - continued
- --------------------------------------------------------------------------------
MANAGEMENT OVERVIEW (UNAUDITED)
Sub-Advisors: Acadian Asset Management, Inc. and Clay Finlay Inc.
Top Ten Holdings
as of July 31, 2007
ING Groep 2.6%
- ---------------------------------------
Royal Dutch Shell, Cl A 2.4%
- ---------------------------------------
HBOS 1.9%
- ---------------------------------------
BHP Billiton 1.9%
- ---------------------------------------
Heineken 1.8%
- ---------------------------------------
Nintendo 1.7%
- ---------------------------------------
BT Group 1.7%
- ---------------------------------------
BNP Paribas 1.6%
- ---------------------------------------
Voestalpine 1.5%
- ---------------------------------------
UniCredito Italiano 1.5%
- ---------------------------------------
As a % of Total
Fund Investments 18.6%
- ---------------------------------------
Nintendo ahead of rivals, enlarging the market by appealing to all
generations and triggering a surge in earnings upgrades. MAN raised its
intermediate-term profit targets due to surging orders and sales in Eastern
Europe.
Stocks that detracted from the Fund's absolute gains included Mitsubishi
UFJ Financial Group, British Energy Group (no longer a Fund holding) and
Sanofi-Aventis. Mitsubishi UFJ Financial, Japan's largest bank, experienced
another year of frustrating results caused by a sputtering Japanese
economy, delays in interest rate increases and consumer reluctance to
spend. British Energy Group, a major nuclear plant operator and the United
Kingdom's largest electricity generator, underperformed after the U.K.
government announced plans to begin selling off its substantial stake in
the company's stock. French pharmaceutical giant Sanofi-Aventis was hurt by
adverse Food and Drug Administration rulings on drug pipeline and patent
challenges.
Q. What is the investment outlook for international stocks?
A. Acadian's outlook for international stocks is positive, though it expects
growth to be moderated from recent levels. Risks to this sub-advisor's
outlook include: elevated energy prices, mounting infl ationary pressures,
slowing corporate profits and the potential for further softening in
housing markets. Infl ation appears to be a major focus of central banks
and is being addressed in an appropriate manner according to Acadian.
Rising interest rates are among the factors that may dampen equity returns
in the short term, but Acadian expects equities to be stronger in 2008. The
sub-advisor notes that economic fundamentals remain solid in most countries
and expects that this will continue to be refl ected in markets, despite
current credit market concerns. However, Acadian notes that valuations have
leveled off, and that there are fewer markets and asset classes that appear
truly undervalued, at least from a cap-weighted index perspective.
Clay Finlay notes that July ended with increased market volatility related
to sub-prime lending issues in the United States and concerns over the
widening fallout overseas. Overall, Clay Finlay believes the increased
volatility and subsequent fl ight to quality should benefi t a portfolio
focused on companies with strong balance sheets, sustainable earnings
growth and reasonable valuations. In the short term, Clay Finlay expects
markets to remain volatile, but the sub-advisor's medium- to long-term view
is that markets should continue to trend higher later in the year, as
corporate profits and economic growth moderate, but maintain healthy
levels.
International Equity Fund
126
PERFORMANCE AND PORTFOLIO SUMMARY (UNAUDITED)
Average Annual Total Returns as of July 31, 2007
- -----------------------------------------------------------------------------------------------------------
1 Year Annualized
Inception Date Return Since Inception
- ----------------------------------------------------------------------------------------------------------
Class A with front-end load 12/30/05 20.64% 19.20%
Class A without load 12/30/05 28.02% 23.73%
Class C with deferred sales load 12/30/05 26.03% 22.85%
Class C without deferred sales load 12/30/05 27.03% 22.85%
Class Z 12/30/05 28.23% 24.01%
Institutional Class 12/30/05 28.65% 24.33%
MSCI EAFE(R) Index 12/30/05 23.91% 22.47%
- -----------------------------------------------------------------------------------------------------------
Past performance is not a guarantee of future results. The Fund's performance
results do not reflect the deduction of taxes that a shareholder would pay on
Fund distributions or on the redemption of Fund shares. Information about these
performance results and the comparative index can be found on pages 1 and 2.
Class A shares have a current maximum initial sales charge of 5.75%; Class C
shares may be subject to a contingent deferred sales charge ("CDSC") of 1.00%,
if redeemed within twelve months of the date of purchase; and Class A share
purchases of $1 million or more, which were purchased without an initial sales
charge, may be subject to a CDSC of 1.00%, if redeemed within twelve months of
the date of purchase. Please read the prospectus carefully for more information
on sales charges. The total annual operating expenses and net annual operating
expenses you may pay as an investor in the Fund's Class A, Class C, Class Z and
Institutional Class shares (as reported in the June 4, 2007 prospectus) are
3.21% and 1.70%; 3.96% and 2.45%; 2.96% and 1.45%; 2.96% and 1.20%,
respectively. Expenses for Class A, C and Z shares are based on estimated
amounts.
Fund Performance
- --------------------------------------------------------------------------------
[LINE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
12/30/05 7/31/06 7/31/07
International Equity Fund, Institutional Class $10,000 $10,980 $14,126
International Equity Fund, Class Z $10,000 $10,971 $14,068
International Equity Fund, Class A $9,425 $10,321 $13,213
International Equity Fund, Class C $10,000 $10,909 $13,858
MSCI EAFE Index $10,000 $11,126 $13,787
Past performance is not a guarantee of future results. The graph above compares
an investment made in each of the Fund's share classes on the inception date of
12/30/05 to an investment made in an unmanaged securities index on that date.
The performance of the Fund's Class A shares shown in the line graph takes into
account the maximum initial sales charge. The Fund's performance in this chart
and the performance table assumes reinvestment of dividends and capital gain
distributions but does not reflect the deduction of taxes that a shareholder
would pay on Fund distributions or on the redemption of Fund shares.
Asset Class Weightings as of July 31, 2007 - % of Total Fund Investments
- --------------------------------------------------------------------------------
[PIE GRAPH WAS REPRESENTED IN THE PRINTED MATERIAL]
Foreign Common Stock 93.9%
Foreign Preferred Stock 1.9%
Cash Equivalent 2.2%
Common Stock 2.0%
100.0%
127
OLD MUTUAL INTERNATIONAL EQUITY FUND - continued
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Common Stock - 1.9%
Applications Software - 0.1%
Infosys Technologies ADR 300 $ 15
--------------
Total Applications Software 15
- ---------------------------------------------------------------------
Commercial Banks Non-US - 0.6%
Banco Itau Holding Financeira ADR 1,900 87
--------------
Total Commerical Banks Non-US 87
- ---------------------------------------------------------------------
Electric-Integrated - 0.4%
Unified Energy Systems GDR* 450 62
--------------
Total Electric-Integrated 62
- ---------------------------------------------------------------------
Oil Companies-Integrated - 0.8%
Petroleo Brasileiro ADR 1,750 114
--------------
Total Oil Companies-Integrated 114
--------------
Total Common Stock (Cost $256) 278
- ---------------------------------------------------------------------
Foreign Common Stock - 91.9%
Australia - 3.2%
BHP Billiton 8,219 261
Caltex Australia 1,565 33
Commonwealth Bank of Australia 1,321 61
Leighton Holdings 590 19
McPherson's 3,832 13
Qantas Airways 1,282 6
QBE Insurance Group 228 6
Sally Malay Mining* 4,907 16
Santos 1,111 12
Woolworths 1,310 30
--------------
Total Australia 457
- ---------------------------------------------------------------------
Austria - 2.3%
Voestalpine 2,552 212
Wiener Staedtische Versicherung 1,650 116
--------------
Total Austria 328
- ---------------------------------------------------------------------
Belgium - 0.2%
Dexia 552 16
InBev 214 17
--------------
Total Belgium 33
- ---------------------------------------------------------------------
Canada - 0.6%
Canadian Imperial Bank of Commerce 700 61
TELUS 400 22
--------------
Total Canada 83
- ---------------------------------------------------------------------
Denmark - 1.4%
Norden 1,350 113
NovoNordisk, Cl B 750 79
Sydbank 200 10
--------------
Total Denmark 202
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Finland - 0.1%
Metso 100 $ 6
Nokia 200 6
--------------
Total Finland 12
- ---------------------------------------------------------------------
France - 6.7%
Accor 1,950 166
Air France-KLM 1,096 49
Alstom 750 135
AXA 4,016 157
BNP Paribas 1,991 219
France Telecom 265 7
Sanofi-Aventis 51 4
Societe Generale 752 129
Total 1,267 100
--------------
Total France 966
- ---------------------------------------------------------------------
Germany - 11.6%
Beiersdorf 725 51
Commerzbank 3,636 156
DaimlerChrysler 424 38
Deutsche Lufthansa 5,447 153
E.ON 1,100 173
Kloeckner 254 19
Koenig & Bauer 634 23
Linde 1,240 147
MAN 1,359 196
Metro 1,700 132
Salzgitter 62 13
SAP 3,450 187
Siemens 1,400 177
ThyssenKrupp 1,794 99
Volkswagen 593 107
--------------
Total Germany 1,671
- ---------------------------------------------------------------------
Greece - 1.4%
National Bank of Greece 3,500 205
--------------
Total Greece 205
- ---------------------------------------------------------------------
Hong Kong - 3.3%
ASM Pacific Technology 7,000 64
Hang Lung Properties 27,000 99
Mandarin Oriental International 28,000 60
Sun Hung Kai Properties 15,000 191
Vtech Holdings 7,401 66
--------------
Total Hong Kong 480
- ---------------------------------------------------------------------
India - 0.3%
Infosys Technologies 900 45
--------------
Total India 45
- ---------------------------------------------------------------------
128
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Indonesia - 0.5%
Bank Rakyat Indonesia 101,000 $ 67
--------------
Total Indonesia 67
- ---------------------------------------------------------------------
Ireland - 1.9%
CRH 4,150 184
Experian Group 8,300 95
--------------
Total Ireland 279
- ---------------------------------------------------------------------
Italy - 2.7%
Banca Popolare dell'Emilia Romagna 169 4
ENI 4,709 165
KME Group* 4,669 13
UniCredito Italiano 24,839 211
--------------
Total Italy 393
- ---------------------------------------------------------------------
Japan - 20.3%
Ajis 200 5
Aucnet 500 7
Brother Industries 6,000 86
Canon 50 3
Cosmo Oil 6,000 34
Cosmos Initia 9,000 48
Daito Bank 13,000 18
East Japan Railway 16 119
FUJIFILM Holdings 600 26
Fujitsu General* 1,000 3
Haruyama Trading 2,000 19
Haseko* 500 1
Honda Motor 400 15
Hudson Soft* 200 3
Isuzu Motors 22,000 120
Japan Tobacco 20 102
JFE Holdings 1,400 96
KDDI 2 13
Kobayashi Pharmaceutical 500 17
Matsushita Electric Works 7,000 88
Mitsubishi UFJ Financial Group 18 192
Mitsui 8,000 188
Mori Seiki 300 10
Nintendo 500 241
Nippon Electric Glass 9,500 148
Nippon Mining Holdings 8,000 81
Nisca 400 5
Nomura Holdings 7,600 144
NTT Data 13 55
Omikenshi* 11,000 13
San-A, Cl A 2,600 80
Sato Restaurant Systems 3,000 18
Segami Medics 1,900 36
Seiko Holdings 2,000 18
Sojitz 3,800 19
Sumco 3,600 185
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Japan - continued
Sumitomo 3,200 $ 62
Sumitomo Metal Mining 3,000 73
Sumitomo Mitsui Financial Group 8 72
T&D Holdings 1,500 98
Takara Leben 3,700 41
Toyota Motor 400 24
Watbe Wedding 2,900 52
Yamada Denki 1,790 178
Yamato Kogyo 800 38
Yaoko 1,500 38
--------------
Total Japan 2,932
- ---------------------------------------------------------------------
Luxembourg - 0.6%
Millicom International Cellular* 1,000 80
--------------
Total Luxembourg 80
- ---------------------------------------------------------------------
Netherlands - 6.9%
Draka Holding 644 35
Gamma Holding 88 8
Heineken 3,904 248
ING Groep 8,619 364
Royal Dutch Shell, Cl A 8,865 344
TNT 52 2
--------------
Total Netherlands 1,001
- ---------------------------------------------------------------------
New Zealand - 1.7%
Air New Zealand 38,915 79
Fletcher Building 8,871 84
Telecom Corp of New Zealand 24,243 84
--------------
Total New Zealand 247
- ---------------------------------------------------------------------
Norway - 1.4%
Cermaq 100 2
Statoil 6,900 204
--------------
Total Norway 206
- ---------------------------------------------------------------------
Philippines - 0.5%
Ayala 5,580 65
--------------
Total Philippines 65
- ---------------------------------------------------------------------
Russia - 0.1%
Unified Energy System GDR 100 14
--------------
Total Russia 14
- ---------------------------------------------------------------------
Singapore - 1.7%
Jardine Cycle & Carriage 10,000 105
Neptune Orient Lines 15,000 54
Singapore Airlines 4,349 55
Singapore Telecommunications 10,450 24
--------------
Total Singapore 238
- ---------------------------------------------------------------------
129
OLD MUTUAL INTERNATIONAL EQUITY FUND - concluded
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
AS OF JULY 31, 2007
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Spain - 0.7%
Banco Bilbao Vizcaya Argentaria 3,193 $ 78
Banco Santander Central Hispano 1,156 22
--------------
Total Spain 100
- ---------------------------------------------------------------------
Sweden - 3.3%
Boliden 1,350 31
Electrolux, Cl B 4,600 115
Ericsson, Cl B 36,000 135
JM 800 24
Volvo, Cl B 9,335 171
--------------
Total Sweden 476
- ---------------------------------------------------------------------
Switzerland - 6.3%
Bell Holding 24 40
Julius Baer Holding 1,500 105
Nestle 433 166
Nobel Biocare Holding 290 87
Roche Holding 540 96
SGS 123 148
Swatch Group 5 2
UBS 2,700 149
Zurich Financial Services 376 110
--------------
Total Switzerland 903
- ---------------------------------------------------------------------
United Kingdom - 12.2%
AstraZeneca 2,320 120
BT Group 37,022 235
Cadbury Schweppes 8,100 100
Capita Group 541 8
Centrica 4,964 36
Colliers CRE 3,314 11
Compass Group 11,700 79
Fiberweb 6,486 17
GlaxoSmithKline 2,700 68
HBOS 13,776 268
Imperial Tobacco Group 193 9
Kazakhmys 711 18
Lonmin 1,150 81
Marks & Spencer Group 3,849 49
National Grid 5,835 83
Persimmon 904 21
Petrofac 3,007 26
Renew Holdings 3,467 8
Royal Bank of Scotland Group 14,793 176
Tenon Group 18,228 22
Tesco 17,200 141
Thus Group* 13,431 46
Vodafone Group 47,000 141
--------------
Total United Kingdom 1,763
--------------
Total Foreign Common Stock (Cost $11,911) 13,246
- ---------------------------------------------------------------------
- ---------------------------------------------------------------------
Description Shares Value (000)
- ---------------------------------------------------------------------
Foreign Preferred Stock - 1.9%
Germany - 1.9%
Fresenius 2,050 $ 162
Porsche 58 105
--------------
Total Germany 267
--------------
Total Foreign Preferred Stock (Cost $234) 267
- ---------------------------------------------------------------------
Money Market Fund - 2.2%
Morgan Stanley Institutional Liquidity
Funds, Prime Portfolio, Institutional
Class 5.29% (C) 310,838 311
--------------
Total Money Market Fund (Cost $311) 311
- ---------------------------------------------------------------------
Total Investments - 97.9% (Cost $12,712) 14,102
- ---------------------------------------------------------------------
Other Assets and Liabilities, Net - 2.1% 306
- ---------------------------------------------------------------------
Total Net Assets - 100.0% $ 14,408
- ---------------------------------------------------------------------
For descriptions of abbreviations and footnotes, please refer to page 131.
The accompanying notes are an integral part of the financial statements.
130
NOTES TO SCHEDULE OF INVESTMENTS
- --------------------------------------------------------------------------------
* Non-income producing security.
144A - Security exempt from registration under Rule 144A of the Securities Act
of 1933. This security may be resold in transactions exempt from
registration, normally to qualified institutional buyers. On July 31, 2007,
the value of these securities amounted to $1,213 (000), representing 2.7%
of the net assets of the Old Mutual Asset Allocation Conservative
Portfolio, $3,640 (000), representing 2.1% of the net assets of the Old
Mutual Asset Allocation Balanced Portfolio, $2,666 (000), representing 1.1%
of the net assets of the Old Mutual Asset Allocation Moderate Growth
Portfolio and $1,872 (000), representing 1.1% of the net assets of the Old
Mutual Asset Allocation Growth Portfolio.
(A) - Variable rate security - the rate reported represents the rate as of July
31, 2007.
(B) - Security fair valued using methods determined in good faith according to
procedures adopted by the Fair Valuation Committee of the Board of
Trustees. On July 31, 2007, the total value of these securities was $0
(000), representing 0.0% of the net assets of the Old Mutual Clay Finlay
China Fund.
(C) - The rate reported on the Schedule of Investments represents the 7-day
effective yield at July 31, 2007.
(D) - All or a portion of this security is held as collateral for securities
sold short or open written index option contracts.
(E) - All or a portion of this security is held as collateral for open futures
contracts. The rate reported on the Schedule of Investments represents the
effective yield at time of purchase.
ADR - American Depositary Receipt
AUD - Australian Dollar
CAD - Canadian Dollar
Cl - Class
CMBS - Commercial Mortgage Backed Security
CMO - Collateralized Mortgage Obligation
DKK - Danish Krone
EUR - Euro
GBP - British Pound Sterling
GDR - Global Depositary Receipt
HMO - Health Maintenance Organization
ISP - Internet Service Provider
JPY - Japanese Yen
LP - Limited Partnership
MTN - Medium-Term Note
NOK - Norwegian Krone
NZD - New Zealand Dollar
R&D - Research and Development
REITs - Real Estate Investment Trusts
S&L - Savings and Loan
SEK - Swedish Krona
Ser - Series
TBA - Security traded under delayed delivery commitments settling after July
31, 2007. Income on this security will not be earned until the settlement
date.
Amounts designated as "-" are either $0 or have been rounded to $0.
Cost figures are shown with "000's" omitted.
131
STATEMENTS OF ASSETS AND LIABILITIES (000, excluding shares)
AS OF JULY 31, 2007
- ---------------------------------------------------------------------------------------------------------------------------------
Old Mutual Old Mutual
Asset Allocation Asset Allocation
Conservative Balanced
Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------------
Assets:
Investment securities, at cost $ 44,606 $ 168,282
- ---------------------------------------------------------------------------------------------------------------------------------
Investment securities, at value $ 46,595 $ 180,221
Variation Margin on Futures Contracts - -
Cash Deposits for Securities Sold Short and Forward Foreign Currency Contracts - -
Cash - -
Foreign Currency (cost $44, $100, $264, $233, $-, $10, $2,921, $4, $-, $150) 44 100
Spot Contracts Receivable - -
Unrealized Gain on Forward Foreign Currency Contracts 102 212
Receivable for Capital Shares Sold 115 633
Receivable from Investment Advisor 15 15
Receivable for Investment Securities Sold 390 2,574
Receivable from Dividends and Interest 330 779
Other Receivables - -
Other Assets 34 59
- ---------------------------------------------------------------------------------------------------------------------------------
Total Assets 47,625 184,593
- ---------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payable for Investment Securities Purchased 2,291 8,382
Written Option Contracts, at Value
(Proceeds received of $-, $-, $-, $-, $17,770, $803, $-, $-, $-, $-) - -
Securities Sold Short, at Value
(Proceeds received of $-, $-, $-, $-, $194,889, $7,760, $-, $-, $-, $-) - -
Payable for Capital Shares Redeemed 522 578
Spot Contracts Payable - -
Payable to Custodian 38 1
Unrealized Loss on Forward Foreign Currency Contracts 43 87
Payable for Investment Advisory Fees 32 136
Payable for Administration Fees 4 15
Payable for Trustees' Fees - 1
Payable for Distribution Fees 1 3
Payable for Website Fees 2 5
Accrued Expenses 61 161
- ---------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 2,994 9,369
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets $ 44,631 $ 175,224
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Paid-in Capital 1 $ 41,713 $ 156,689
Undistributed Net Investment Income/(Accumulated Net Investment Loss) 91 186
Accumulated Net Realized Gain on Investments 777 6,283
Net Unrealized Appreciation (Depreciation) on Investments, Securities Sold Short,
Futures, Written Options and Foreign Currency Transactions 2,050 12,066
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets $ 44,631 $ 175,224
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets - Class A $ 12,605 $ 51,321
Net Assets - Class C 25,812 109,348
Net Assets - Class Z 514 586
Net Assets - Institutional Class 5,700 13,969
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest - Class A 1,115,343 4,046,188
Outstanding shares of beneficial interest - Class C 2,293,426 8,652,539
Outstanding shares of beneficial interest - Class Z 45,457 46,116
Outstanding shares of beneficial interest - Institutional Class 503,702 1,099,421
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share - Class A^ $ 11.30 $ 12.68
- ---------------------------------------------------------------------------------------------------------------------------------
Maximum Offering Price per Share - Class A (Net Asset Value/94.25%) $ 11.99 $ 13.45
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Offering Price Per Share - Class C+,^ $ 11.25 $ 12.64
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Class Z^ $ 11.30 $ 12.70
- ---------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Institutional Class^ $ 11.32 $ 12.71
- ---------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------
Old Mutual
Asset Allocation
Moderate Growth
Portfolio
- ------------------------------------------------------------------------------------------------------------
Assets:
Investment securities, at cost $ 216,151
- ------------------------------------------------------------------------------------------------------------
Investment securities, at value $ 237,260
Variation Margin on Futures Contracts -
Cash Deposits for Securities Sold Short and Forward Foreign Currency Contracts -
Cash -
Foreign Currency (cost $44, $100, $264, $233, $-, $10, $2,921, $4, $-, $150) 262
Spot Contracts Receivable 978
Unrealized Gain on Forward Foreign Currency Contracts 174
Receivable for Capital Shares Sold 742
Receivable from Investment Advisor 43
Receivable for Investment Securities Sold 4,445
Receivable from Dividends and Interest 548
Other Receivables -
Other Assets 81
- ------------------------------------------------------------------------------------------------------------
Total Assets 244,533
- ------------------------------------------------------------------------------------------------------------
Liabilities:
Payable for Investment Securities Purchased 7,653
Written Option Contracts, at Value
(Proceeds received of $-, $-, $-, $-, $17,770, $803, $-, $-, $-, $-) -
Securities Sold Short, at Value
(Proceeds received of $-, $-, $-, $-, $194,889, $7,760, $-, $-, $-, $-) -
Payable for Capital Shares Redeemed 696
Spot Contracts Payable 980
Payable to Custodian 199
Unrealized Loss on Forward Foreign Currency Contracts 65
Payable for Investment Advisory Fees 185
Payable for Administration Fees 21
Payable for Trustees' Fees 1
Payable for Distribution Fees 5
Payable for Website Fees 11
Accrued Expenses 214
- ------------------------------------------------------------------------------------------------------------
Total Liabilities 10,030
- ------------------------------------------------------------------------------------------------------------
Net Assets $ 234,503
- ------------------------------------------------------------------------------------------------------------
Net Assets:
Paid-in Capital 1 $ 203,365
Undistributed Net Investment Income/(Accumulated Net Investment Loss) 270
Accumulated Net Realized Gain on Investments 9,647
Net Unrealized Appreciation (Depreciation) on Investments, Securities Sold Short,
Futures, Written Options and Foreign Currency Transactions 21,221
- ------------------------------------------------------------------------------------------------------------
Net Assets $ 234,503
- ------------------------------------------------------------------------------------------------------------
Net Assets - Class A $ 58,969
Net Assets - Class C 161,855
Net Assets - Class Z 530
Net Assets - Institutional Class 13,149
- ------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest - Class A 4,284,999
Outstanding shares of beneficial interest - Class C 11,909,492
Outstanding shares of beneficial interest - Class Z 38,273
Outstanding shares of beneficial interest - Institutional Class 951,200
- ------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share - Class A^ $ 13.76
- ------------------------------------------------------------------------------------------------------------
Maximum Offering Price per Share - Class A (Net Asset Value/94.25%) $ 14.60
- ------------------------------------------------------------------------------------------------------------
Net Asset Value and Offering Price Per Share - Class C+,^ $ 13.59
- ------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Class Z^ $ 13.84
- ------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Institutional Class^ $ 13.82
- ------------------------------------------------------------------------------------------------------------
Amounts designated as "-" are either $0 or have been rounded to $0.
^ Net Assets divided by shares may not calculate to the stated NAV because these
amounts are shown rounded.
+ Class C shares have a contingent deferred sales charge. For a description of a
possible sales charge, please see the Fund's prospectus.
1 Par Value of $0.001, unlimited authorization.
The accompanying notes are an integral part of the financial statements.
132
- ----------------------------------------------------------------------------------------------------------------------------
Old Mutual Old Mutual
Asset Allocation Analytic
Growth Defensive
Portfolio Equity Fund
- ----------------------------------------------------------------------------------------------------------------------------
Assets:
Investment securities, at cost $ 161,715 $ 1,181,235
- ----------------------------------------------------------------------------------------------------------------------------
Investment securities, at value $ 178,646 $ 1,253,688
Variation Margin on Futures Contracts - 7,690
Cash Deposits for Securities Sold Short and Forward Foreign Currency Contracts - 43,851
Cash - 79
Foreign Currency (cost $44, $100, $264, $233, $-, $10, $2,921, $4, $-, $150) 233 -
Spot Contracts Receivable 54 -
Unrealized Gain on Forward Foreign Currency Contracts - 29,387
Receivable for Capital Shares Sold 1,245 7,504
Receivable from Investment Advisor 31 305
Receivable for Investment Securities Sold 2,285 -
Receivable from Dividends and Interest 142 569
Other Receivables - -
Other Assets 71 90
- ----------------------------------------------------------------------------------------------------------------------------
Total Assets 182,707 1,343,163
- ----------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payable for Investment Securities Purchased 3,794 -
Written Option Contracts, at Value
(Proceeds received of $-, $-, $-, $-, $17,770, $803, $-, $-, $-, $-) - 12,913
Securities Sold Short, at Value
(Proceeds received of $-, $-, $-, $-, $194,889, $7,760, $-, $-, $-, $-) - 189,306
Payable for Capital Shares Redeemed 291 1,321
Spot Contracts Payable 54 -
Payable to Custodian 85 -
Unrealized Loss on Forward Foreign Currency Contracts - 23,436
Payable for Investment Advisory Fees 148 913
Payable for Administration Fees 16 90
Payable for Trustees' Fees 1 6
Payable for Distribution Fees 3 13
Payable for Website Fees 9 42
Accrued Expenses 171 570
- ----------------------------------------------------------------------------------------------------------------------------
Total Liabilities 4,572 228,610
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets $ 178,135 $ 1,114,553
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets:
Paid-in Capital 1 $ 154,757 $ 1,024,766
Undistributed Net Investment Income/(Accumulated Net Investment Loss) (186) 6,766
Accumulated Net Realized Gain on Investments 6,631 8,145
Net Unrealized Appreciation (Depreciation) on Investments, Securities Sold Short,
Futures, Written Options and Foreign Currency Transactions 16,933 74,876
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets $ 178,135 1,114,553
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets - Class A $ 55,755 $ 607,810
Net Assets - Class C 96,805 340,569
Net Assets - Class Z 648 130,928
Net Assets - Institutional Class 24,927 35,246
- ----------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest - Class A 3,761,233 41,876,776
Outstanding shares of beneficial interest - Class C 6,660,726 23,784,429
Outstanding shares of beneficial interest - Class Z 43,478 9,006,635
Outstanding shares of beneficial interest - Institutional Class 1,671,488 2,423,501
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share - Class A^ $ 14.82 $ 14.51
- ----------------------------------------------------------------------------------------------------------------------------
Maximum Offering Price per Share - Class A (Net Asset Value/94.25%) $ 15.72 $ 15.40
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Offering Price Per Share - Class C+,^ $ 14.53 $ 14.32
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Class Z^ $ 14.91 $ 14.54
- ----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Institutional Class^ $ 14.91 $ 14.54
- ----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
Old Mutual Old Mutual
Analytic Global Clay Finlay
Defensive China
Equity Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------
Assets:
Investment securities, at cost $ 52,367 $ 48,306
- -----------------------------------------------------------------------------------------------------------------------------
Investment securities, at value $ 51,826 $ 61,677
Variation Margin on Futures Contracts 376 -
Cash Deposits for Securities Sold Short and Forward Foreign Currency Contracts 1,792 -
Cash - -
Foreign Currency (cost $44, $100, $264, $233, $-, $10, $2,921, $4, $-, $150) 10 2,921
Spot Contracts Receivable - -
Unrealized Gain on Forward Foreign Currency Contracts - -
Receivable for Capital Shares Sold 1,004 420
Receivable from Investment Advisor 31 10
Receivable for Investment Securities Sold - 3,284
Receivable from Dividends and Interest 53 79
Other Receivables - -
Other Assets 40 29
- -----------------------------------------------------------------------------------------------------------------------------
Total Assets 55,132 68,420
- -----------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payable for Investment Securities Purchased - 978
Written Option Contracts, at Value
(Proceeds received of $-, $-, $-, $-, $17,770, $803, $-, $-, $-, $-) 450 -
Securities Sold Short, at Value
(Proceeds received of $-, $-, $-, $-, $194,889, $7,760, $-, $-, $-, $-) 7,612 -
Payable for Capital Shares Redeemed 22 143
Spot Contracts Payable - -
Payable to Custodian 12 -
Unrealized Loss on Forward Foreign Currency Contracts - -
Payable for Investment Advisory Fees 43 75
Payable for Administration Fees 4 6
Payable for Trustees' Fees - -
Payable for Distribution Fees 1 1
Payable for Website Fees 1 3
Accrued Expenses 53 61
- -----------------------------------------------------------------------------------------------------------------------------
Total Liabilities 8,198 1,267
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets $ 46,934 $ 67,153
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets:
Paid-in Capital 1 $ 46,695 $ 43,151
Undistributed Net Investment Income/(Accumulated Net Investment Loss) 35 118
Accumulated Net Realized Gain on Investments 856 10,513
Net Unrealized Appreciation (Depreciation) on Investments, Securities Sold Short,
Futures, Written Options and Foreign Currency Transactions (652) 13,371
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets $ 46,934 $ 67,153
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets - Class A $ 24,417 $ 25,976
Net Assets - Class C 19,136 15,497
Net Assets - Class Z 526 3,377
Net Assets - Institutional Class 2,855 22,303
- -----------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest - Class A 2,149,900 1,156,517
Outstanding shares of beneficial interest - Class C 1,699,513 696,040
Outstanding shares of beneficial interest - Class Z 46,197 149,737
Outstanding shares of beneficial interest - Institutional Class 250,489 984,662
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share - Class A^ $ 11.36 $ 22.46
- -----------------------------------------------------------------------------------------------------------------------------
Maximum Offering Price per Share - Class A (Net Asset Value/94.25%) $ 12.05 $ 23.83
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value and Offering Price Per Share - Class C+,^ $ 11.26 $ 22.26
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Class Z^ $ 11.38 $ 22.55
- -----------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Institutional Class^ $ 11.40 $ 22.65
- -----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Old Mutual Old Mutual
Clay Finlay Copper Rock
Emerging Emerging
Markets Fund Growth Fund
- ----------------------------------------------------------------------------------------------------------------------
Assets:
Investment securities, at cost $ 9,266 $ 93,856
- ----------------------------------------------------------------------------------------------------------------------
Investment securities, at value $ 11,076 $ 103,875
Variation Margin on Futures Contracts - -
Cash Deposits for Securities Sold Short and Forward Foreign Currency Contracts - -
Cash - -
Foreign Currency (cost $44, $100, $264, $233, $-, $10, $2,921, $4, $-, $150) 4 -
Spot Contracts Receivable - -
Unrealized Gain on Forward Foreign Currency Contracts - -
Receivable for Capital Shares Sold 69 209
Receivable from Investment Advisor 7 17
Receivable for Investment Securities Sold 96 819
Receivable from Dividends and Interest 13 20
Other Receivables 9 -
Other Assets 23 36
- ----------------------------------------------------------------------------------------------------------------------
Total Assets 11,297 104,976
- ----------------------------------------------------------------------------------------------------------------------
Liabilities:
Payable for Investment Securities Purchased 36 971
Written Option Contracts, at Value
(Proceeds received of $-, $-, $-, $-, $17,770, $803, $-, $-, $-, $-) - -
Securities Sold Short, at Value
(Proceeds received of $-, $-, $-, $-, $194,889, $7,760, $-, $-, $-, $-) - -
Payable for Capital Shares Redeemed 32 214
Spot Contracts Payable - -
Payable to Custodian - -
Unrealized Loss on Forward Foreign Currency Contracts - -
Payable for Investment Advisory Fees 11 83
Payable for Administration Fees 1 9
Payable for Trustees' Fees - 1
Payable for Distribution Fees - -
Payable for Website Fees 1 5
Accrued Expenses 22 69
- ----------------------------------------------------------------------------------------------------------------------
Total Liabilities 103 1,352
- ----------------------------------------------------------------------------------------------------------------------
Net Assets $ 11,194 $ 103,624
- ----------------------------------------------------------------------------------------------------------------------
Net Assets:
Paid-in Capital 1 $ 8,576 $ 90,351
Undistributed Net Investment Income/(Accumulated Net Investment Loss) (7) -
Accumulated Net Realized Gain on Investments 816 3,254
Net Unrealized Appreciation (Depreciation) on Investments, Securities Sold Short,
Futures, Written Options and Foreign Currency Transactions 1,809 10,019
- ----------------------------------------------------------------------------------------------------------------------
Net Assets $ 11,194 $ 103,624
- ----------------------------------------------------------------------------------------------------------------------
Net Assets - Class A $ 4,474 $ 35,890
Net Assets - Class C 1,588 511
Net Assets - Class Z 1,013 557
Net Assets - Institutional Class 4,119 66,666
- ----------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest - Class A 284,260 2,781,555
Outstanding shares of beneficial interest - Class C 101,969 40,274
Outstanding shares of beneficial interest - Class Z 64,064 42,941
Outstanding shares of beneficial interest - Institutional Class 258,462 5,123,537
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share - Class A^ $ 15.74 $ 12.90
- ----------------------------------------------------------------------------------------------------------------------
Maximum Offering Price per Share - Class A (Net Asset Value/94.25%) $ 16.70 $ 13.69
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value and Offering Price Per Share - Class C+,^ $ 15.58 $ 12.70
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Class Z^ $ 15.82 $ 12.97
- ----------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Institutional Class^ $ 15.93 $ 13.01
- ----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------
Old Mutual
International
Equity Fund
- -----------------------------------------------------------------------------------------------------
Assets:
Investment securities, at cost $ 12,712
- -----------------------------------------------------------------------------------------------------
Investment securities, at value $ 14,102
Variation Margin on Futures Contracts -
Cash Deposits for Securities Sold Short and Forward Foreign Currency Contracts -
Cash -
Foreign Currency (cost $44, $100, $264, $233, $-, $10, $2,921, $4, $-, $150) 151
Spot Contracts Receivable 147
Unrealized Gain on Forward Foreign Currency Contracts -
Receivable for Capital Shares Sold 67
Receivable from Investment Advisor 16
Receivable for Investment Securities Sold 204
Receivable from Dividends and Interest 10
Other Receivables -
Other Assets 36
- -----------------------------------------------------------------------------------------------------
Total Assets 14,733
- -----------------------------------------------------------------------------------------------------
Liabilities:
Payable for Investment Securities Purchased 139
Written Option Contracts, at Value
(Proceeds received of $-, $-, $-, $-, $17,770, $803, $-, $-, $-, $-) -
Securities Sold Short, at Value
(Proceeds received of $-, $-, $-, $-, $194,889, $7,760, $-, $-, $-, $-) -
Payable for Capital Shares Redeemed -
Spot Contracts Payable 147
Payable to Custodian -
Unrealized Loss on Forward Foreign Currency Contracts -
Payable for Investment Advisory Fees 12
Payable for Administration Fees 1
Payable for Trustees' Fees -
Payable for Distribution Fees -
Payable for Website Fees -
Accrued Expenses 26
- -----------------------------------------------------------------------------------------------------
Total Liabilities 325
- -----------------------------------------------------------------------------------------------------
Net Assets $ 14,408
- -----------------------------------------------------------------------------------------------------
Net Assets:
Paid-in Capital 1 $ 12,267
Undistributed Net Investment Income/(Accumulated Net Investment Loss) 61
Accumulated Net Realized Gain on Investments 690
Net Unrealized Appreciation (Depreciation) on Investments, Securities Sold Short
Futures, Written Options and Foreign Currency Transactions 1,390
- -----------------------------------------------------------------------------------------------------
Net Assets $ 14,408
- -----------------------------------------------------------------------------------------------------
Net Assets - Class A $ 2,170
Net Assets - Class C 1,402
Net Assets - Class Z 1,002
Net Assets - Institutional Class 9,834
- -----------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest - Class A 160,632
Outstanding shares of beneficial interest - Class C 105,011
Outstanding shares of beneficial interest - Class Z 73,859
Outstanding shares of beneficial interest - Institutional Class 722,659
- -----------------------------------------------------------------------------------------------------
Net Asset Value and Redemption Price Per Share - Class A^ $ 13.51
- -----------------------------------------------------------------------------------------------------
Maximum Offering Price per Share - Class A (Net Asset Value/94.25%) $ 14.33
- -----------------------------------------------------------------------------------------------------
Net Asset Value and Offering Price Per Share - Class C+,^ $ 13.36
- -----------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Class Z^ $ 13.57
- -----------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price Per Share - Institutional Class^ $ 13.61
- -----------------------------------------------------------------------------------------------------
133
STATEMENTS OF OPERATIONS (000)
FOR THE YEAR ENDED JULY 31, 2007
- ----------------------------------------------------------------------------------------------------------------------------------
Old Mutual Old Mutual Old Mutual
Asset Allocation Asset Allocation Asset Allocation
Conservative Balanced Moderate Growth
Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 273 $ 1,727 $ 3,020
Interest 1,401 2,835 1,831
Less: Foreign Taxes Withheld (12) (71) (159)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 1,662 4,491 4,692
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees 335 1,285 1,763
Administration Fees 39 143 196
Trustees' Fees 7 23 32
Custodian Fees 58 147 173
Professional Fees 26 92 126
Registration and SEC Fees 40 53 57
Printing Fees 7 26 50
Transfer Agent Fees 74 164 284
Website Fees 5 17 35
Offering Costs - - -
Distribution Fees
Class A Service Fees 28 111 136
Class C Service Fees 56 211 327
Class C Distribution (12b-1) Fees 166 632 982
Insurance Expense 14 44 47
Dividend Expense on Securities Sold Short - - -
Interest Expense on Securities Sold Short - - -
Other Expenses 44 72 72
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 899 3,020 4,280
- ----------------------------------------------------------------------------------------------------------------------------------
Less: Waiver of Investment Advisory Fees (154) (200) (268)
Less: Expense Reduction(1) (3) (10) (21)
Less: Reimbursement of other expenses by Advisor - - -
- ----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 742 2,810 3,991
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 920 1,681 701
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain from Investment Transactions
(including securities sold short) 867 7,038 10,500
Net Realized Gain on Futures Contracts - - -
Net Realized Gain (Loss) on Written Option Contracts - - -
Net Realized Gain (Loss) on Foreign Currency Transactions (96) (291) (351)
Net Change in Unrealized Appreciation (Depreciation)
on Investments (including securities sold short) 1,421 8,325 15,495
Net Change in Unrealized Depreciation
on Futures Contracts - - -
Net Change in Unrealized Appreciation
on Written Option Contracts - - -
Net Change in Unrealized Appreciation (Depreciation) on Forward
Foreign Currency Contracts and Translation of Other Assets
and Liabilities denominated in Foreign Currency. 91 179 157
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments 2,283 15,251 25,801
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting from Operations $3,203 $16,932 $26,502
- ----------------------------------------------------------------------------------------------------------------------------------
Amounts designated as "-" are either $0 or have been rounded to $0.
(1) All expense reductions are for transfer agent expenses. See Note 2.
The accompanying notes are an integral part of the financial statements.
134
- ----------------------------------------------------------------------------------------------------------------------------------
Old Mutual Old Mutual Old Mutual
Asset Allocation Analytic Analytic Global
Growth Defensive Defensive
Portfolio Equity Fund Equity Fund
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 2,537 $ 13,042 $428
Interest 134 5,014 102
Less: Foreign Taxes Withheld (135) - (32)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 2,536 18,056 498
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees 1,305 8,174 181
Administration Fees 137 823 16
Trustees' Fees 22 139 2
Custodian Fees 167 60 74
Professional Fees 87 568 10
Registration and SEC Fees 53 87 24
Printing Fees 39 221 1
Transfer Agent Fees 229 973 47
Website Fees 31 121 2
Offering Costs - - 56
Distribution Fees
Class A Service Fees 108 1,105 18
Class C Service Fees 185 680 14
Class C Distribution (12b-1) Fees 554 2,040 43
Insurance Expense 26 85 2
Dividend Expense on Securities Sold Short - 2,426 73
Interest Expense on Securities Sold Short - 793 22
Other Expenses 36 38 10
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 2,979 18,333 595
- ----------------------------------------------------------------------------------------------------------------------------------
Less: Waiver of Investment Advisory Fees (261) (3,330) 163)
Less: Expense Reduction(1) (17) (68) (1)
Less: Reimbursement of other expenses by Advisor - - -
- ----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 2,701 14,935 431
- ----------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) (165) 3,121 67
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain from Investment Transactions
(including securities sold short) 7,468 41,947 745
Net Realized Gain on Futures Contracts - 27,429 56
Net Realized Gain (Loss) on Written Option Contracts - (58,052) 78
Net Realized Gain (Loss) on Foreign Currency Transactions (208) 4,385 (50)
Net Change in Unrealized Appreciation (Depreciation)
on Investments (including securities sold short) 12,913 48,123 (430)
Net Change in Unrealized Depreciation
on Futures Contracts - (18,742) (612)
Net Change in Unrealized Appreciation
on Written Option Contracts - 12,946 381
Net Change in Unrealized Appreciation (Depreciation) on Forward
Foreign Currency Contracts and Translation of Other Assets
and Liabilities denominated in Foreign Currency. (2) 5,459 -
- ----------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments 20,171 63,495 168
- ----------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting from Operations $20,006 $ 66,616 $235
- ----------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
Old Mutual Old Mutual Old Mutual
Clay Finlay Clay Finlay Copper Rock Old Mutual
China Emerging Emerging International
Fund Markets Fund Growth Fund Equity Fund
- --------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividends $ 970 $ 135 $ 128 $ 249
Interest 122 7 90 6
Less: Foreign Taxes Withheld (11) (15) (4) (30)
- --------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 1,081 127 214 225
- --------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees 583 79 818 88
Administration Fees 43 7 91 9
Trustees' Fees 6 1 15 1
Custodian Fees 56 28 29 38
Professional Fees 21 2 59 3
Registration and SEC Fees 13 4 42 7
Printing Fees 18 3 26 1
Transfer Agent Fees 113 52 149 47
Website Fees 11 2 16 1
Offering Costs 27 25 - 26
Distribution Fees
Class A Service Fees 45 6 73 3
Class C Service Fees 19 2 1 2
Class C Distribution (12b-1) Fees 55 5 3 5
Insurance Expense 5 3 9 3
Dividend Expense on Securities Sold Short - - - -
Interest Expense on Securities Sold Short - - - -
Other Expenses 6 4 6 6
- --------------------------------------------------------------------------------------------------------------------------------
Total Expenses 1,021 223 1,337 240
- --------------------------------------------------------------------------------------------------------------------------------
Less: Waiver of Investment Advisory Fees (148) (79) (190) (88)
Less: Expense Reduction(1) (6) (1) (10) -
Less: Reimbursement of other expenses by Advisor - (21) - (32)
- --------------------------------------------------------------------------------------------------------------------------------
Net Expenses 867 122 1,137 120
- --------------------------------------------------------------------------------------------------------------------------------
Net Investment Income (Loss) 214 5 (923) 105
- --------------------------------------------------------------------------------------------------------------------------------
Net Realized Gain from Investment Transactions
(including securities sold short) 10,983 851 8,924 698
Net Realized Gain on Futures Contracts - - - -
Net Realized Gain (Loss) on Written Option Contracts - - - -
Net Realized Gain (Loss) on Foreign Currency Transactions (19) (13) - (11)
Net Change in Unrealized Appreciation (Depreciation)
on Investments (including securities sold short) 12,164 1,698 10,295 1,127
Net Change in Unrealized Depreciation
on Futures Contracts - - - -
Net Change in Unrealized Appreciation
on Written Option Contracts - - - -
Net Change in Unrealized Appreciation (Depreciation) on Forward
Foreign Currency Contracts and Translation of Other Assets
and Liabilities denominated in Foreign Currency. - (1) - -
- --------------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments 23,128 2,535 19,219 1,814
- --------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Resulting from Operations $23,342 $2,540 $18,296 $1,919
- --------------------------------------------------------------------------------------------------------------------------------
135
STATEMENTS OF CHANGES IN NET ASSETS (000)
- ---------------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation
Conservative Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
8/1/06 8/1/05
to 7/31/07 to 7/31/06
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ 920 $ 582
Net Realized Gain from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contracts and Foreign
Currency Transactions 771 107
Net Increase from Payments by Affiliates - -
Net Change in Unrealized Appreciation on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions 1,512 99
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 3,203 788
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A (288) (150)
Class C (413) (187)
Class Z (6) -
Institutional Class (159) (115)
Net Realized Gains from Security Transactions
Class A (46) (31)
Class C (92) (57)
Class Z - -
Institutional Class (25) (22)
- ---------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (1,029) (562)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 7,150 5,211
Shares Issued upon Reinvestment of Distributions 258 137
Redemption Fees - -
Shares Redeemed (4,000) (3,517)
- ---------------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 3,408 1,831
- ---------------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 14,024 14,123
Shares Issued upon Reinvestment of Distributions 244 95
Redemption Fees - -
Shares Redeemed (7,920) (3,978)
- ---------------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 6,348 10,240
- ---------------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 507 1
Shares Issued upon Reinvestment of Distributions 6 -
Redemption Fees - -
Shares Redeemed - -
- ---------------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions 513 1
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 185 227
Shares Issued upon Reinvestment of Distributions 184 137
Redemption Fees - -
Shares Redeemed (611) (23)
- ---------------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions (242) 341
- ---------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 10,027 12,413
- ---------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 12,201 12,639
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 32,430 19,791
- ---------------------------------------------------------------------------------------------------------------------------
End of Period $44,631 $32,430
- ---------------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ 91 $ 137
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation
Balanced Portfolio
- ---------------------------------------------------------------------------------------------------------------------
8/1/06 8/1/05
to 7/31/07 to 7/31/06
- ---------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ 1,681 $ 871
Net Realized Gain from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contracts and Foreign
Currency Transactions 6,747 1,944
Net Increase from Payments by Affiliates - -
Net Change in Unrealized Appreciation on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions 8,504 1,054
- ---------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 16,932 3,869
- ---------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A (601) (310)
Class C (587) (215)
Class Z (4) -
Institutional Class (222) (158)
Net Realized Gains from Security Transactions
Class A (722) (178)
Class C (1,348) (285)
Class Z - -
Institutional Class (234) (84)
- ---------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (3,718) (1,230)
- ---------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 17,743 22,402
Shares Issued upon Reinvestment of Distributions 1,016 349
Redemption Fees - -
Shares Redeemed (9,355) (5,439)
- ---------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 9,404 17,312
- ---------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 52,194 41,520
Shares Issued upon Reinvestment of Distributions 995 242
Redemption Fees - -
Shares Redeemed (13,208) (5,573)
- ---------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 39,981 36,189
- ---------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 573 1
Shares Issued upon Reinvestment of Distributions 4 -
Redemption Fees - -
Shares Redeemed - -
- ---------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions 577 1
- ---------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 1,048 1,117
Shares Issued upon Reinvestment of Distributions 456 242
Redemption Fees - -
Shares Redeemed (1,871) (211)
- ---------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions (367) 1,148
- ---------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 49,595 54,650
- ---------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 62,809 57,289
- ---------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 112,415 55,126
- ---------------------------------------------------------------------------------------------------------------------
End of Period $175,224 $112,415
- ---------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ 186 $ 186
- ---------------------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
136
- ------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation
Moderate Growth Portfolio
- ------------------------------------------------------------------------------------------------------------------
8/1/06 8/1/05
to 7/31/07 to 7/31/06
- ------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ 701 $ 321
Net Realized Gain from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contracts and Foreign
Currency Transactions 10,149 2,628
Net Increase from Payments by Affiliates - -
Net Change in Unrealized Appreciation on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions 15,652 2,680
- ------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 26,502 5,629
- ------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A (288) (73)
Class C (37) (1)
Class Z - -
Institutional Class (63) (25)
Net Realized Gains from Security Transactions
Class A (855) (124)
Class C (2,019) (248)
Class Z - -
Institutional Class (137) (29)
- ------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (3,399) (500)
- ------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 24,638 32,649
Shares Issued upon Reinvestment of Distributions 853 135
Redemption Fees - -
Shares Redeemed (19,562) (5,916)
- ------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 5,929 26,868
- ------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 74,395 67,934
Shares Issued upon Reinvestment of Distributions 1,043 106
Redemption Fees - -
Shares Redeemed (24,565) (6,007)
- ------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 50,873 62,033
- ------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 515 1
Shares Issued upon Reinvestment of Distributions - -
Redemption Fees - -
Shares Redeemed - -
- ------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions 515 1
- ------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 4,463 1,404
Shares Issued upon Reinvestment of Distributions 200 54
Redemption Fees - -
Shares Redeemed (943) (46)
- ------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions 3,720 1,412
- ------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 61,037 90,314
- ------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 84,140 95,443
- ------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 150,363 54,920
- ------------------------------------------------------------------------------------------------------------------
End of Period $234,503 $150,363
- ------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ 270 $ 296
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation
Growth Portfolio
- ------------------------------------------------------------------------------------------------------------------
8/1/06 8/1/05
to 7/31/07 to 7/31/06
- ------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ (165) $ (93)
Net Realized Gain from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contracts and Foreign
Currency Transactions 7,260 2,028
Net Increase from Payments by Affiliates - -
Net Change in Unrealized Appreciation on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions 12,911 1,791
- ------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 20,006 3,726
- ------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A - (23)
Class C - -
Class Z - -
Institutional Class - (14)
Net Realized Gains from Security Transactions
Class A (696) (133)
Class C (1,187) (200)
Class Z - -
Institutional Class (314) (52)
- ------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (2,197) (422)
- ------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 28,470 23,101
Shares Issued upon Reinvestment of Distributions 463 95
Redemption Fees - -
Shares Redeemed (9,298) (4,377)
- ------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 19,635 18,819
- ------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 49,791 37,384
Shares Issued upon Reinvestment of Distributions 726 107
Redemption Fees - -
Shares Redeemed (13,067) (2,207)
- ------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 37,450 35,284
- ------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 638 1
Shares Issued upon Reinvestment of Distributions - -
Redemption Fees - -
Shares Redeemed - -
- ------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions 638 1
- ------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 7,288 8,786
Shares Issued upon Reinvestment of Distributions 314 67
Redemption Fees - -
Shares Redeemed (915) (299)
- ------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions 6,687 8,554
- ------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 64,410 62,658
- ------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 82,219 65,962
- ------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 95,916 29,954
- ------------------------------------------------------------------------------------------------------------------
End of Period $178,135 $95,916
- ------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ (186) $ (21)
- ------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Old Mutual Analytic
Defensive Equity Fund (1)
- ------------------------------------------------------------------------------------------------------------------------------------
8/1/06 1/1/06 1/1/05
to 7/31/07 to 7/31/06 to 12/31/05
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ 3,121 $ 1,320 $ 1,704
Net Realized Gain from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contracts and Foreign
Currency Transactions 15,709 12,088 2,094
Net Increase from Payments by Affiliates - 65 -
Net Change in Unrealized Appreciation on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions 47,786 1,333 18,438
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations 66,616 14,806 22,236
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A (538) - (2,191)
Class C (13) - (1,331)
Class Z (317) - (5,290)
Institutional Class (19) - -
Net Realized Gains from Security Transactions
Class A - - (2,788)
Class C - - (1,852)
Class Z - - (6,458)
Institutional Class - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (887) - (19,910)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 389,014 197,245 134,980
Shares Issued upon Reinvestment of Distributions 340 (53) 2,925
Redemption Fees 25 5 (4,611)
Shares Redeemed (109,542) (38,695) -
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 279,837 158,502 133,294 (2)
- ------------------------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 166,681 119,793 90,979
Shares Issued upon Reinvestment of Distributions 3 (6) 779
Redemption Fees 1 - (2,623)
Shares Redeemed (49,204) (7,574) -
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 117,481 112,213 89,135 (2)
- ------------------------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 18,925 10,934 312,540
Shares Issued upon Reinvestment of Distributions 310 - 11,591
Redemption Fees - 1 -
Shares Redeemed (41,544) (101,658) (162,080)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions (22,309) (90,723) 162,051 (3)
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 28,811 6,712 2
Shares Issued upon Reinvestment of Distributions 19 - -
Redemption Fees - - -
Shares Redeemed (504) - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions 28,326 6,712 2 (4)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 403,335 186,704 384,482
- ------------------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 469,064 201,510 386,808
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 645,489 443,979 57,171
- ------------------------------------------------------------------------------------------------------------------------------------
End of Period $1,114,553 $ 645,489 $ 443,979
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ 6,766 $ (431) $ (4,433)
- ------------------------------------------------------------------------------------------------------------------------------------
137
STATEMENTS OF CHANGES IN NET ASSETS (000) - concluded
- ------------------------------------------------------------------------------------------------------------------------
Old Mutual
Analytic Global
Defensive Equity Fund
- ------------------------------------------------------------------------------------------------------------------------
8/1/06 5/31/06*
to 7/31/07 to 7/31/06
- ------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ 67 $ -
Net Realized Gain (Loss) from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contract and Foreign
Currency Transactions 829 9
Net Increase from Payments by Affiliates - -
Net Change in Unrealized Appreciation (Depreciation) on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions (661) 9
- ------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 235 18
- ------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A (4) -
Class C (1) -
Class Z - -
Institutional Class (9) -
Net Realized Gains from Security Transactions
Class A - -
Class C - -
Class Z - -
Institutional Class - -
- ------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (14) -
- ------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 24,960 253
Shares Issued upon Reinvestment of Distributions 4 -
Redemption Fees - -
Shares Redeemed (713) -
- ------------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 24,251 253
- ------------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 19,429 110
Shares Issued upon Reinvestment of Distributions 1 -
Redemption Fees - -
Shares Redeemed (379) -
- ------------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 19,051 110
- ------------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 529 1
Shares Issued upon Reinvestment of Distributions - -
Redemption Fees - -
Shares Redeemed (6) -
- ------------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions 523 1
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued - 2,497
Shares Issued upon Reinvestment of Distributions 9 -
Redemption Fees - -
Shares Redeemed - -
- ------------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions 9 2,497
- ------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 43,834 2,861
- ------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 44,055 2,879
- ------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 2,879 -
- ------------------------------------------------------------------------------------------------------------------------
End of Period $46,934 $2,879
- ------------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ 35 $ (8)
- ------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Old Mutual
Clay Finlay China Fund
- ---------------------------------------------------------------------------------------------------------------------------
8/1/06 12/30/05*
to 7/31/07 to 7/31/06
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ 214 $ 57
Net Realized Gain (Loss) from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contract and Foreign
Currency Transactions 10,964 512
Net Increase from Payments by Affiliates - -
Net Change in Unrealized Appreciation (Depreciation) on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions 12,164 1,207
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 23,342 1,776
- ---------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A (63) -
Class C (7) -
Class Z (1) -
Institutional Class (63) -
Net Realized Gains from Security Transactions
Class A (494) -
Class C (127) -
Class Z (8) -
Institutional Class (353) -
- ---------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (1,116) -
- ---------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 30,813 2,606
Shares Issued upon Reinvestment of Distributions 380 -
Redemption Fees - -
Shares Redeemed (16,962) (110)
- ---------------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 14,231 2,496
- ---------------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 14,603 796
Shares Issued upon Reinvestment of Distributions 86 -
Redemption Fees 2 -
Shares Redeemed (3,634) -
- ---------------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 11,057 796
- ---------------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 4,818 23
Shares Issued upon Reinvestment of Distributions 7 -
Redemption Fees - -
Shares Redeemed (1,709) -
- ---------------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions 3,116 23
- ---------------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 165 10,880
Shares Issued upon Reinvestment of Distributions 416 -
Redemption Fees - -
Shares Redeemed (29) -
- ---------------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions 552 10,880
- ---------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 28,956 14,195
- ---------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 51,182 15,971
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 15,971 -
- ---------------------------------------------------------------------------------------------------------------------------
End of Period $ 67,153 $15,971
- ---------------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ 118 $ 57
- ---------------------------------------------------------------------------------------------------------------------------
* Inception date of the Fund.
(1) On December 9, 2005, the Old Mutual Analytic Defensive Equity Fund (the
"Fund") acquired substantially all of the assets of the Analytic Defensive
Equity Fund (the "Predecessor Fund"), a series of the Advisors' Inner Circle
Fund. The operations of the Fund prior to the acquisition were those of the
Predecessor Fund. The Fund changed its fiscal year end from December 31 to
July 31 beginning in the fiscal year 2006. See Note 1 in Notes to Financial
Statements.
(2) Class A and Class C Shares commenced operations on March 31, 2005.
(3) The Fund's Class Z is the successor class of the Predecessor Fund's
Institutional Class; the Fund's Institutional Class is new.
(4) Institutional Class Shares commenced operations on December 9, 2005.
Amounts designated as "-" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
138
- ------------------------------------------------------------------------------------------------------------------------
Old Mutual Clay Finlay
Emerging Markets Fund
- ------------------------------------------------------------------------------------------------------------------------
8/1/06 12/30/05*
to 7/31/07 to 7/31/06
- ------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ 5 $ 5
Net Realized Gain (Loss) from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contract and Foreign
Currency Transactions 838 139
Net Increase from Payments by Affiliates - -
Net Change in Unrealized Appreciation (Depreciation) on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions 1,697 112
- ------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 2,540 256
- ------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A (1) -
Class C - -
Class Z - -
Institutional Class (4) -
Net Realized Gains from Security Transactions
Class A (49) -
Class C (17) -
Class Z - -
Institutional Class (107) -
- ------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (178) -
- ------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 4,632 383
Shares Issued upon Reinvestment of Distributions 26 -
Redemption Fees - -
Shares Redeemed (1,372) (21)
- ------------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 3,286 362
- ------------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 1,356 123
Shares Issued upon Reinvestment of Distributions 13 -
Redemption Fees - -
Shares Redeemed (91) (28)
- ------------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 1,278 95
- ------------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 942 1
Shares Issued upon Reinvestment of Distributions - -
Redemption Fees - -
Shares Redeemed (3) -
- ------------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions 939 1
- ------------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 7 2,497
Shares Issued upon Reinvestment of Distributions 111 -
Redemption Fees - -
Shares Redeemed - -
- ------------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions 118 2,497
- ------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 5,621 2,955
- ------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 7,983 3,211
- ------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 3,211 -
- ------------------------------------------------------------------------------------------------------------------------
End of Period $11,194 $ 3,211
- ------------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ (7) $ (7)
- ------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Old Mutual Copper Rock
Emerging Growth Fund
- --------------------------------------------------------------------------------------------------------------------------
8/1/06 8/1/05
to 7/31/07 to 7/31/06
- --------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ (923) $ (191)
Net Realized Gain (Loss) from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contract and Foreign
Currency Transactions 8,924 (4,747)
Net Increase from Payments by Affiliates - -
Net Change in Unrealized Appreciation (Depreciation) on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions 10,295 (276)
- --------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 18,296 (5,214)
- --------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A - -
Class C - -
Class Z - -
Institutional Class - -
Net Realized Gains from Security Transactions
Class A - -
Class C - -
Class Z - -
Institutional Class - -
- --------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions - -
- --------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 19,141 31,157
Shares Issued upon Reinvestment of Distributions - -
Redemption Fees 1 2
Shares Redeemed (9,888) (7,859)
- --------------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 9,254 23,300
- --------------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 270 482
Shares Issued upon Reinvestment of Distributions - -
Redemption Fees - -
Shares Redeemed (226) (52)
- --------------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 44 430
- --------------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 521 1
Shares Issued upon Reinvestment of Distributions - -
Redemption Fees - -
Shares Redeemed - -
- --------------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions 521 1
- --------------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 20,324 56,756
Shares Issued upon Reinvestment of Distributions - -
Redemption Fees - -
Shares Redeemed (15,765) (6,823)
- --------------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions 4,559 49,933
- --------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 14,378 73,664
- --------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 32,674 68,450
- --------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 70,950 2,500
- --------------------------------------------------------------------------------------------------------------------------
End of Period $103,624 $ 70,950
- --------------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ - $ -
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
Old Mutual
International Equity Fund
- --------------------------------------------------------------------------------------------------------------------------
8/1/06 12/30/05*
to 7/31/07 to 7/31/06
- --------------------------------------------------------------------------------------------------------------------------
Investment Activities:
Net Investment Income (Loss) $ 105 $ 61
Net Realized Gain (Loss) from Investments (including Securities Sold Short),
Written Options Contracts, Futures Contract and Foreign
Currency Transactions 687 159
Net Increase from Payments by Affiliates - -
Net Change in Unrealized Appreciation (Depreciation) on Investments (including
Securities Sold Short), Written Options Contracts, Futures Contracts
and Foreign Currency Transactions 1,127 263
- --------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting from Operations 1,919 483
- --------------------------------------------------------------------------------------------------------------------------
Dividends and Distributions to Shareholders From:
Net Investment Income
Class A (4) -
Class C (3) -
Class Z - -
Institutional Class (54) -
Net Realized Gains from Security Transactions
Class A (14) -
Class C (12) -
Class Z - -
Institutional Class (174) -
- --------------------------------------------------------------------------------------------------------------------------
Total Dividends and Distributions (261) -
- --------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Class A
Shares Issued 1,984 259
Shares Issued upon Reinvestment of Distributions 18 -
Redemption Fees - -
Shares Redeemed (273) -
- --------------------------------------------------------------------------------------------------------------------------
Total Class A Transactions 1,729 259
- --------------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 1,252 175
Shares Issued upon Reinvestment of Distributions 9 -
Redemption Fees - -
Shares Redeemed (130) (5)
- --------------------------------------------------------------------------------------------------------------------------
Total Class C Transactions 1,131 170
- --------------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 1,004 1
Shares Issued upon Reinvestment of Distributions - -
Redemption Fees - -
Shares Redeemed (20) -
- --------------------------------------------------------------------------------------------------------------------------
Total Class Z Transactions 984 1
- --------------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 2,818 4,999
Shares Issued upon Reinvestment of Distributions 228 -
Redemption Fees - -
Shares Redeemed (52) -
- --------------------------------------------------------------------------------------------------------------------------
Total Institutional Class Transactions 2,994 4,999
- --------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets Derived from
Capital Share Transactions 6,838 5,429
- --------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets 8,496 5,912
- --------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period 5,912 -
- --------------------------------------------------------------------------------------------------------------------------
End of Period $ 14,408 $5,912
- --------------------------------------------------------------------------------------------------------------------------
Undistributed (Distributions in Excess of) Net Investment
Income/(Accumulated Net Investment Loss) $ 61 $ 22
- --------------------------------------------------------------------------------------------------------------------------
139
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR OR PERIOD ENDED JULY 31, (UNLESS
OTHERWISE NOTED)
Realized
Net and Net
Asset Net Unrealized Dividends Distributions Total Asset
Value Investment Gains Total from Net from Dividends Value
Beginning Income (Losses) on Redemption from Investment Capital and End
of Period (Loss)* Securities* Fees Operations Income Gains Distributions of Period
- ------------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Class A
2007 $10.64 $0.30 $0.69 $ - $ 0.99 $(0.28) $(0.05) $(0.33) $ 11.30
2006 10.53 0.26 0.10 - 0.36 (0.20) (0.05) (0.25) 10.64
2005** 10.00 0.16 0.47 - 0.63 (0.10) - (0.10) 10.53
Class C
2007 $10.60 $0.22 $0.68 $ - $ 0.90 $(0.20) $(0.05) $(0.25) $ 11.25
2006 10.50 0.18 0.10 - 0.28 (0.13) (0.05) (0.18) 10.60
2005** 10.00 0.10 0.47 - 0.57 (0.07) - (0.07) 10.50
Class Z
2007 $10.65 $0.34 $0.67 $ - $ 1.01 $(0.31) $(0.05) $(0.36) $ 11.30
2006*** 10.60 0.19 0.09 - 0.28 (0.18) (0.05) (0.23) 10.65
Institutional Class
2007 $10.65 $0.33 $0.70 $ - $ 1.03 $(0.31) $(0.05) $(0.36) $ 11.32
2006 10.54 0.29 0.10 - 0.39 (0.23) (0.05) (0.28) 10.65
2005** 10.00 0.16 0.50 - 0.66 (0.12) - (0.12) 10.54
- ------------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Class A
2007 $11.45 $0.20 $1.41 $ - $ 1.61 $(0.17) $(0.21) $(0.38) $ 12.68
2006 11.02 0.16 0.47 - 0.63 (0.12) (0.08) (0.20) 11.45
2005** 10.00 0.10 0.98 - 1.08 (0.06) - (0.06) 11.02
Class C
2007 $11.42 $0.10 $1.41 $ - $ 1.51 $(0.08) $(0.21) $(0.29) $ 12.64
2006 11.00 0.07 0.48 - 0.55 (0.05) (0.08) (0.13) 11.42
2005** 10.00 0.03 1.00 - 1.03 (0.03) - (0.03) 11.00
Class Z
2007 $11.46 $0.26 $1.39 $ - $ 1.65 $(0.20) $(0.21) $(0.41) $ 12.70
2006*** 11.26 0.12 0.28 - 0.40 (0.12) (0.08) (0.20) 11.46
Institutional Class
2007 $11.46 $0.23 $1.43 $ - $ 1.66 $(0.20) $(0.21) $(0.41) $ 12.71
2006 11.04 0.19 0.46 - 0.65 (0.15) (0.08) (0.23) 11.46
2005** 10.00 0.10 1.01 - 1.11 (0.07) - (0.07) 11.04
- ------------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Class A
2007 12.07 $0.11 $1.86 $ - $ 1.97 $(0.07) $(0.21) $(0.28) $ 13.76
2006 11.30 0.09 0.76 - 0.85 (0.03) (0.05) (0.08) 12.07
2005** 10.00 0.06 1.25 - 1.31 (0.01) - (0.01) 11.30
Class C
2007 $11.95 $0.01 $1.84 $ - $ 1.85 $ - $(0.21) $(0.21) $ 13.59
2006 11.24 - 0.76 - 0.76 - (0.05) (0.05) 11.95
2005** 10.00 - 1.24 - 1.24 - - - 11.24
Class Z
2007 $12.12 $0.20 $1.83 $ - $ 2.03 $(0.10) $(0.21) $(0.31) $ 13.84
2006*** 11.70 0.08 0.43 - 0.51 (0.04) (0.05) (0.09) 12.12
Institutional Class
2007 $12.12 $0.15 $1.86 $ - $ 2.01 $(0.10) $(0.21) $(0.31) $ 13.82
2006 11.33 0.12 0.76 - 0.88 (0.04) (0.05) (0.09) 12.12
2005** 10.00 0.07 1.27 - 1.34 (0.01) - (0.01) 11.33
- ------------------------------------------------------------------------------------------------------------------------------------
Ratio of
Expenses to
Average Net Ratio of Net
Net Assets Investment
Assets Ratio (Excluding Income
End of Expenses Waivers and (Loss) Portfolio
Total of Period to Average Expense to Average Turnover
Return+ (000) Net Assets++ Reductions)++ Net Assets++ Rate+
- ----------------------------------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION CONSERVATIVE PORTFOLIO
Class A
2007 9.40% $ 12,605 1.50% 1.94% 2.73% 130.47%
2006 3.39% 8,588 1.50% 2.35% 2.46% 146.84%
2005** 6.36% 6,684 1.50% 4.68% 1.87% 170.31%
Class C
2007 8.57% $ 25,812 2.25% 2.57% 1.98% 130.47%
2006 2.63% 18,253 2.25% 2.75% 1.74% 146.84%
2005** 5.75% 7,914 2.25% 4.92% 1.15% 170.31%
Class Z
2007 9.55% $ 514 1.25% 11.45% 3.01% 130.47%
2006*** 2.63% 1 1.25% 757.79% 2.80% 146.84%
Institutional Class
2007 9.74% $ 5,700 1.25% 1.60% 2.98% 130.47%
2006 3.64% 5,588 1.25% 1.75% 2.71% 146.84%
2005** 6.60% 5,193 1.25% 6.95% 1.82% 170.31%
- ----------------------------------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION BALANCED PORTFOLIO
Class A
2007 14.20% $ 51,321 1.55% 1.69% 1.59% 121.42%
2006 5.76% 37,679 1.55% 1.82% 1.40% 129.99%
2005** 10.83% 19,481 1.55% 4.42% 1.13% 125.19%
Class C
2007 13.38% $109,348 2.30% 2.44% 0.85% 121.42%
2006 5.00% 61,845 2.30% 2.54% 0.66% 129.99%
2005** 10.31% 24,342 2.30% 4.92% 0.38% 125.19%
Class Z
2007 14.55% $ 586 1.30% 11.24% 2.02% 121.42%
2006*** 3.57% 1 1.30% 771.22% 1.60% 129.99%
Institutional Class
2007 14.64% $ 13,969 1.30% 1.39% 1.84% 121.42%
2006 5.91% 12,890 1.30% 1.47% 1.64% 129.99%
2005** 11.15% 11,303 1.30% 6.08% 1.14% 125.19%
- ------------------------------------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION MODERATE GROWTH PORTFOLIO
Class A
2007 16.49% $ 58,969 1.55% 1.73% 0.84% 112.42%
2006 7.58% 46,242 1.55% 1.91% 0.76% 111.99%
2005** 13.11% 17,736 1.55% 4.92% 0.70% 98.50%
Class C
2007 15.63% $161,855 2.30% 2.43% 0.09% 112.42%
2006 6.80% 95,984 2.30% 2.62% 0.01% 111.99%
2005** 12.44% 30,905 2.30% 5.44% (0.03)% 98.50%
Class Z
2007 16.91% $ 530 1.30% 11.43% 1.40% 112.42%
2006*** 4.45% 1 1.30% 764.76% 0.98% 111.99%
Institutional Class
2007 16.74% $ 13,149 1.30% 1.37% 1.12% 112.42%
2006 7.86% 8,136 1.30% 1.56% 1.00% 111.99%
2005** 13.43% 6,279 1.30% 6.81% 0.79% 98.50%
- ------------------------------------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
140
Realized
Net and Net
Asset Net Unrealized Dividends Distributions Total Asset
Value Investment Gains Total from Net from Dividends Value
Beginning Income (Losses) on Redemption from Investment Capital and End Total
of Period (Loss)* Securities* Fees Operations Income Gains Distributions of Period Return+
- -------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Class A
2007 $12.70 $ 0.03 $ 2.34 $ - $ 2.37 $ - $(0.25) $(0.25) $14.82 18.76%
2006 11.68 0.02 1.12 - 1.14 (0.02) (0.10) (0.12) 12.70 9.75%
2005** 10.00 0.03 1.66 - 1.69 (0.01) - (0.01) 11.68 16.91%
Class C
2007 $12.55 $(0.07) $ 2.30 $ - $ 2.23 $ - $(0.25) $(0.25) $14.53 17.86%
2006 11.61 (0.07) 1.11 - 1.04 - (0.10) (0.10) 12.55 8.97%
2005** 10.00 (0.04) 1.65 - 1.61 - - - 11.61 16.15%
Class Z
2007 $12.74 $ 0.12 $ 2.30 $ - $ 2.42 $ - $(0.25) $(0.25) $14.91 19.09%
2006*** 12.23 0.03 0.61 - 0.64 (0.03) (0.10) (0.13) 12.74 5.23%
Institutional Class
2007 $12.75 $ 0.07 $ 2.34 $ - $ 2.41 $ - $(0.25) $(0.25) $14.91 19.00%
2006 11.70 0.06 1.12 - 1.18 (0.03) (0.10) (0.13) 12.75 10.08%
2005** 10.00 0.04 1.67 - 1.71 (0.01) - (0.01) 11.70 17.13%
- -------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL ANALYTIC DEFENSIVE EQUITY FUND 1
Class A
2007 $13.21 $ 0.08 $ 1.24 $ - $ 1.32 $(0.02) $ - $(0.02) $14.51 9.99%
2006 4 12.84 0.05 0.32# - 0.37 - - - 13.21 2.88%#
2005 2 12.30 0.05 1.09 - 1.14 (0.27) (0.33) (0.60) 12.84 9.27%
Class C
2007 $13.11 $(0.03) $ 1.24 $ - $ 1.21 $ - $ - $ - $14.32 9.24%
2006 4 12.81 (0.01) 0.31# - 0.30 - - - 13.11 2.34%#
2005 2 12.30 (0.01) 1.09 - 1.08 (0.24) (0.33) (0.57) 12.81 8.78%
Class Z 3
2007 $13.21 $ 0.12 $ 1.24 $ - $ 1.36 $(0.03) $ - $(0.03) $14.54 10.33%
2006 4 12.82 0.06 0.33# - 0.39 - - - 13.21 3.04%#
2005 11.66 0.10 1.69 - 1.79 (0.30) (0.33) (0.63) 12.82 15.36%
2004 11.10 0.09 0.99 - 1.08 (0.19) (0.33) (0.52) 11.66 9.87%
2003 9.09 0.08 2.01 - 2.09 (0.08) - (0.08) 11.10 23.13%
Institutional Class
2007 $13.21 $ 0.12 $ 1.24 $ - $ 1.36 $(0.03) $ - $(0.03) $14.54 10.34%
2006 4 12.82 0.08 0.31# - 0.39 - - - 13.21 3.04%#
2005*** 13.45 0.01 (0.10) - (0.09) (0.21) (0.33) (0.54) 12.82 (0.63)%
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of
Expenses to
Average Net Ratio of Net
Net Assets Investment
Assets Ratio (Excluding Income
End of Expenses Waivers and (Loss) Portfolio
of Period to Average Expense to Average Turnover
(000) Net Assets++ Reductions)++ Net Assets++ Rate+
- ---------------------------------------------------------------------------
OLD MUTUAL ASSET ALLOCATION GROWTH PORTFOLIO
Class A
2007 $ 55,755 1.60% 1.83% 0.24% 104.92%
2006 30,459 1.60% 2.22% 0.17% 94.12%
2005** 10,443 1.60% 5.02% 0.33% 59.93%
Class C
2007 $ 96,805 2.35% 2.56% (0.50)% 104.92%
2006 50,152 2.35% 2.93% (0.58)% 94.12%
2005** 13,256 2.35% 5.63% (0.44)% 59.93%
Class Z
2007 $ 648 1.35% 10.49% 0.77% 104.92%
2006*** 1 1.35% 758.31% 0.39% 94.12%
Institutional Class
2007 $ 24,927 1.35% 1.38% 0.51% 104.92%
2006 15,304 1.35% 1.68% 0.47% 94.12%
2005** 6,255 1.35% 7.19% 0.43% 59.93%
- ---------------------------------------------------------------------------
OLD MUTUAL ANALYTIC DEFENSIVE EQUITY FUND 1
Class A
2007 $607,810 1.54% 5 1.96% 0.55% 183.98%
2006 4 295,095 1.51% 5 2.18% 0.57% 59.61%
2005 2 129,960 1.98% 5 2.06% 0.64% 81.00%
Class C
2007 $340,569 2.29% 5 2.67% (0.19)% 183.98%
2006 4 202,766 2.26% 5 2.86% (0.17)% 59.61%
2005 2 86,752 2.61% 5 2.68% (0.09)% 81.00%
Class Z 3
2007 $130,928 1.29% 5 1.66% 0.84% 183.98%
2006 4 140,795 1.26% 5 1.82% 0.72% 59.61%
2005 227,265 1.36% 5 1.44% 0.78% 81.00%
2004 57,171 1.17% 5 1.70% 0.75% 152.00%
2003 44,693 1.30% 5 2.27% 0.79% 241.00%
Institutional Class
2007 $ 35,246 1.24% 5 1.60% 0.82% 183.98%
2006 4 6,833 1.21% 5 2.11% 0.97% 59.61%
2005*** 2 1.27% 5 2.12% 1.55% 81.00%
- ---------------------------------------------------------------------------
141
FINANCIAL HIGHLIGHTS - continued
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR OR PERIOD ENDED JULY 31, (UNLESS
OTHERWISE NOTED)
Realized
Net and Net
Asset Net Unrealized Dividends Distributions Total Asset
Value Investment Gains Total from Net from Dividends Value
Beginning Income (Losses) on Redemption from Investment Capital and End Total
of Period (Loss)* Securities* Fees Operations Income Gains Distributions of Period Return+
- --------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL ANALYTIC GLOBAL DEFENSIVE EQUITY FUND^^
Class A
2007 $10.05 $ 0.08 $ 1.25 $ - $ 1.33 $(0.02) $ - $(0.02) $11.36 13.27%
2006 10.00 (0.02) 0.07 - 0.05 - - - 10.05 0.50%
Class C
2007 $10.03 $(0.02) $ 1.25 $ - $ 1.23 $ - $ - $ - $11.26 12.30%
2006 10.00 (0.03) 0.06 - 0.03 - - - 10.03 0.30%
Class Z
2007 $10.04 $ 0.15 $ 1.21 $ - $ 1.36 $(0.02) $ - $(0.02) $11.38 13.52%
2006 10.00 - 0.04 - 0.04 - - - 10.04 0.40%
Institutional Class
2007 $10.05 $ 0.11 $ 1.27 $ - $ 1.38 $(0.03) $ - $(0.03) $11.40 13.79%
2006 10.00 - 0.05 - 0.05 - - - 10.05 0.50%
- --------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL CLAY FINLAY CHINA FUND^
Class A
2007 $13.23 $ 0.06 $ 9.59 $ - $ 9.65 $(0.05) $(0.37) $(0.42) $22.46 73.81%
2006 10.00 0.01 3.22 - 3.23 - - - 13.23 32.30%
Class C
2007 $13.18 $(0.06) $ 9.52 $0.01 $ 9.47 $(0.02) $(0.37) $(0.39) $22.26 72.67%
2006 10.00 (0.06) 3.24 - 3.18 - - - 13.18 31.80%
Class Z
2007 $13.25 $ 0.02 $ 9.71 $ - $ 9.73 $(0.06) $(0.37) $(0.43) $22.55 74.36%
2006 10.00 (0.03) 3.28 - 3.25 - - - 13.25 32.50%
Institutional Class
2007 $13.27 $ 0.19 $ 9.63 $ - $ 9.82 $(0.07) $(0.37) $(0.44) $22.65 74.91%
2006 10.00 0.08 3.19 - 3.27 - - - 13.27 32.70%
- --------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL CLAY FINLAY EMERGING MARKETS FUND^
Class A
2007 $11.08 $(0.04) $ 5.14 $ - $ 5.10 $(0.01) $(0.43) $(0.44) $15.74 46.67%
2006 10.00 (0.01) 1.09 - 1.08 - - - 11.08 10.80%
Class C
2007 $11.04 $(0.14) $ 5.12 $ - $ 4.98 $(0.01) $(0.43) $(0.44) $15.58 45.70%
2006 10.00 (0.07) 1.11 - 1.04 - - - 11.04 10.40%
Class Z
2007 $11.10 $ 0.04 $ 5.11 $ - $ 5.15 $ - $(0.43) $(0.43) $15.82 47.04%
2006 10.00 (0.01) 1.11 - 1.10 - - - 11.10 11.00%
Institutional Class
2007 $11.13 $ 0.07 $ 5.17 $ - $ 5.24 $(0.01) $(0.43) $(0.44) $15.93 47.79%
2006 10.00 0.02 1.11 - 1.13 - - - 11.13 11.30%
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of
Expenses to
Average Net Ratio of Net
Net Assets Investment
Assets Ratio (Excluding Income
End of Expenses Waivers and (Loss) Portfolio
of Period to Average Expense to Average Turnover
(000) Net Assets++ Reductions)++ Net Assets++ Rate+
- -------------------------------------------------------------------------
OLD MUTUAL ANALYTIC GLOBAL DEFENSIVE EQUITY FUND^^
Class A
2007 $ 24,417 2.55%+++ 3.19% 0.68% 173.28%
2006 257 2.80%+++ 12.44% (1.19)% 19.97%
Class C
2007 $ 19,136 3.30%+++ 4.07% (0.16)% 173.28%
2006 111 3.55%+++ 24.73% (1.87)% 19.97%
Class Z
2007 $ 526 2.30%+++ 17.92% 1.28% 173.28%
2006 1 2.55%+++ 612.91% (0.27)% 19.97%
Institutional Class
2007 $ 2,855 2.00%+++ 3.71% 0.96% 173.28%
2006 2,510 2.26%+++ 6.77% (0.01)% 19.97%
- -------------------------------------------------------------------------
OLD MUTUAL CLAY FINLAY CHINA FUND^
Class A
2007 $ 25,976 2.10% 2.42% 0.31% 193.08%
2006 2,532 2.10% 6.65% 0.12% 50.80%
Class C
2007 $ 15,497 2.85% 3.33% (0.33)% 193.08%
2006 793 2.85% 11.53% (0.76)% 50.80%
Class Z
2007 $ 3,377 1.85% 5.59% 0.12% 193.08%
2006 24 1.85% 259.40% (0.46)% 50.80%
Institutional Class
2007 $ 22,303 1.55% 1.75% 1.06% 193.08%
2006 12,622 1.55% 2.58% 1.07% 50.80%
- -------------------------------------------------------------------------
OLD MUTUAL CLAY FINLAY EMERGING MARKETS FUND^
Class A
2007 $ 4,474 2.10% 3.08% (0.25)% 97.77%
2006 346 2.10% 21.06% (0.22)% 82.86%
Class C
2007 $ 1,588 2.85% 6.57% (0.98)% 97.77%
2006 85 2.85% 55.88% (1.05)% 82.86%
Class Z
2007 $ 1,013 1.85% 12.56% 0.26% 97.77%
2006 1 1.85% 1988.70% (0.18)% 82.86%
Institutional Class
2007 $ 4,119 1.35% 2.13% 0.49% 97.77%
2006 2,779 1.35% 4.28% 0.32% 82.86%
- -------------------------------------------------------------------------
The accompanying notes are an integral part of the financial statements.
142
Realized
Net and Net
Asset Net Unrealized Dividends Distributions Total Asset
Value Investment Gains Total from Net from Dividends Value
Beginning Income (Losses) on Redemption from Investment Capital and End Total
of Period (Loss)* Securities* Fees Operations Income Gains Distributions of Period Return+
- -------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL COPPER ROCK EMERGING GROWTH FUND^^^
Class A
2007 $10.52 $(0.16) $ 2.54 $ - $ 2.38 $ - $ - $ - $12.90 22.62%
2006 10.00 (0.13) 0.65 - 0.52 - - - 10.52 5.20%
2005 10.00 - - - - - - - 10.00 0.00%
Class C
2007 $10.43 $(0.24) $ 2.51 $ - $ 2.27 $ - $ - $ - $12.70 21.76%
2006 10.00 (0.21) 0.64 - 0.43 - - - 10.43 4.30%
2005 10.00 - - - - - - - 10.00 0.00%
Class Z***
2007 $10.55 $(0.15) $ 2.57 $ - $ 2.42 $ - $ - $ - $12.97 22.94%
2006 10.46 (0.07) 0.16 - 0.09 - - - 10.55 0.86%
Institutional Class
2007 $10.56 $(0.10) $ 2.55 $ - $ 2.45 $ - $ - $ - $13.01 23.20%
2006 10.00 (0.08) 0.64 - 0.56 - - - 10.56 5.60%
2005 10.00 - - - - - - - 10.00 0.00%
- -------------------------------------------------------------------------------------------------------------------------------
OLD MUTUAL INTERNATIONAL EQUITY FUND^
Class A
2007 $10.95 $0.14 $ 2.87 $ - $ 3.01 $(0.10) $(0.35) $(0.45) $13.51 28.02%
2006 10.00 0.18 0.77 - 0.95 - - - 10.95 9.50%
Class C
2007 $10.91 $0.04 $ 2.86 $ - $ 2.90 $(0.10) $(0.35) $(0.45) $13.36 27.03%
2006 10.00 0.12 0.79 - 0.91 - - - 10.91 9.10%
Class Z
2007 $10.97 $0.19 $ 2.85 $ - $ 3.04 $(0.09) $(0.35) $(0.44) $13.57 28.23%
2006 10.00 0.10 0.87 - 0.97 - - - 10.97 9.70%
Institutional Class
2007 $10.98 $0.17 $ 2.92 $ - $ 3.09 $(0.11) $(0.35) $(0.46) $13.61 28.65%
2006 10.00 0.12 0.86 - 0.98 - - - 10.98 9.80%
- -------------------------------------------------------------------------------------------------------------------------------
Ratio of
Expenses to
Average Net Ratio of Net
Net Assets Investment
Assets Ratio (Excluding Income
End of Expenses Waivers and (Loss) Portfolio
of Period to Average Expense to Average Turnover
(000) Net Assets++ Reductions)++ Net Assets++ Rate+
- -------------------------------------------------------------------------
OLD MUTUAL COPPER ROCK EMERGING GROWTH FUND^^^
Class A
2007 $ 35,890 1.55% 1.85% (1.32)% 169.81%
2006 20,814 1.55% 2.97% (1.15)% 282.22%
2005 2,500 ++++ ++++ ++++ ++++
Class C
2007 $ 511 2.30% 7.42% (2.06)% 169.81%
2006 384 2.30% 15.96% (1.89)% 282.22%
2005 - ++++ ++++ ++++ ++++
Class Z***
2007 $ 557 1.30% 12.38% (1.12)% 169.81%
2006 1 1.30% 787.59% (0.93)% 282.22%
Institutional Class
2007 $ 66,666 1.10% 1.21% (0.86)% 169.81%
2006 49,751 1.10% 1.71% (0.70)% 282.22%
2005 - ++++ ++++ ++++ ++++
- -------------------------------------------------------------------------
OLD MUTUAL INTERNATIONAL EQUITY FUND^
Class A
2007 $ 2,170 1.70% 4.33% 1.05% 94.78%
2006 251 1.70% 30.10% 2.94% 48.74%
Class C
2007 $ 1,402 2.45% 6.77% 0.29% 94.78%
2006 170 2.45% 39.12% 1.88% 48.74%
Class Z
2007 $ 1,002 1.45% 13.96% 1.37% 94.78%
2006 1 1.45% 1,776.73% 1.59% 48.74%
Institutional Class
2007 $ 9,834 1.20% 1.75% 1.33% 94.78%
2006 5,490 1.20% 2.96% 1.85% 48.74%
- -------------------------------------------------------------------------
* Per share amounts for the year or period are calculated based on average
outstanding shares.
** Fund commenced operations September 30, 2004.
*** Class commenced operations on December 9, 2005.
# Impact of payment to affiliate was less than $0.01 per share and 0.01%,
respectively.
+ Total returns and portfolio turnover rates are for the period indicated and
have not been annualized. Total return would have been lower had certain
expenses not been waived by the Advisor during the year. Returns shown do
not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. Returns shown exclude any
applicable sales charges.
++ Ratios for periods less than one year have been annualized.
+++ Impact of Dividend Expense for Old Mutual Analytic Global Defensive Equity
Fund as a ratio to average net assets:
A C Z Institutional
-------------------------------------------------
2007 0.46% 0.46% 0.46% 0.46%
2006 0.79% 0.79% 0.79% 0.79%
## Includes expense offset for fees paid indirectly.
++++ This shareholder data is not being disclosed because the data is not
believed to be meaningful due to the short operational history.
^ Fund commenced operations December 30, 2005.
^^ Fund commenced operations May 31, 2006.
^^^ Fund commenced operations July 29, 2005.
143
FINANCIAL HIGHLIGHTS - concluded
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR OR PERIOD ENDED JULY 31,
(UNLESS OTHERWISE NOTED)
(1) On December 9, 2005, the Old Mutual Analytic Defensive Equity Fund (the
"Fund") acquired substantially all of the assets and liabilities of the
Analytic Defensive Equity Fund (the "Predecessor Fund"), a series of The
Advisors' Inner Circle Fund. The operations of the Fund prior to the
acquisition were those of the Predecessor Fund.
(2) Commenced operations March 31, 2005.
(3) The Fund's Class Z is the successor class of the Predecessor Fund's
Institutional Class; the Fund's Institutional Class is new.
(4) The Old Mutual Analytic Defensive Equity Fund changed its fiscal year end
from December 31 to July 31. 2006 amounts are for the period 1/1/06 to
7/31/06.
(5) Impact of Dividend Expense for Old Mutual Analytic Defensive Equity Fund as
a ratio to average net assets:
A C Z Institutional
-------------------------------------------------
2007 0.28% 0.28% 0.28% 0.27%
2006 0.34% 0.34% 0.27% 0.39%
2005 0.41% 0.35% 0.24% n/a
2004 n/a n/a 0.18% n/a
2003 n/a n/a 0.31% n/a
Amounts designated as "-" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
144
NOTES TO FINANCIAL STATEMENTS
AS OF JULY 31, 2007
1. ORGANIZATION
- --------------------------------------------------------------------------------
Old Mutual Advisor Funds (the "Trust"), a Delaware statutory trust effective May
27, 2004, is registered under the Investment Company Act of 1940, as amended
("1940 Act"), as an open-end management investment company. The Trust currently
offers thirteen series portfolios, of which the following are covered by this
Annual Report - the Old Mutual Asset Allocation Conservative Portfolio, the Old
Mutual Asset Allocation Balanced Portfolio, the Old Mutual Asset Allocation
Moderate Growth Portfolio, the Old Mutual Asset Allocation Growth Portfolio
(collectively, the "Asset Allocation Funds"), the Old Mutual Analytic Defensive
Equity Fund ("Old Mutual Analytic Fund"), the Old Mutual Analytic Global
Defensive Equity Fund ("Old Mutual Analytic Global Fund"), the Old Mutual Clay
Finlay China Fund, the Old Mutual Clay Finlay Emerging Markets Fund, the Old
Mutual International Equity Fund (collectively, the "International Funds") and
the Old Mutual Copper Rock Emerging Growth Fund ("Old Mutual Copper Rock Fund")
(each a "Fund" and collectively, the "Funds"). The Trust's series portfolios
whose financial statements are presented separately are the Old Mutual VA Asset
Allocation Conservative Portfolio, the Old Mutual VA Asset Allocation Balanced
Portfolio and the Old Mutual VA Asset Allocation Moderate Growth Portfolio. The
Asset Allocation Funds commenced operations on September 30, 2004; the Old
Mutual Analytic Fund commenced operations on July 1, 1978; the International
Funds commenced operations on December 30, 2005, the Old Mutual Copper Rock Fund
commenced operations on July 29, 2005 and the Old Mutual Analytic Global Fund
commenced operations on May 31, 2006.
Shareholders may purchase shares of the Funds through four separate classes,
Class A, Class C, Class Z and Institutional Class shares. All classes have equal
rights as to earnings, assets and voting privileges, except that each class may
have different distribution costs, dividends, registration costs and shareholder
services costs and each class has exclusive voting rights with respect to its
distribution plan. Except for these differences, each share class of each Fund
represents an equal proportionate interest in that Fund. Each Fund, except for
the Old Mutual Clay Finlay China Fund, is classified as a diversified management
investment company. The Funds' prospectuses provide a description of each Fund's
investment objective, policies and investment strategies.
The Old Mutual Analytic Fund is the successor to the Analytic Defensive Equity
Fund, a series of The Advisors' Inner Circle Fund, (the "AIC Analytic Fund").
The AIC Analytic Fund and the Old Mutual Analytic Fund entered into an agreement
and plan of reorganization dated as of October 13, 2005. Under the plan of
reorganization, the AIC Analytic Fund transferred substantially all of its
assets and liabilities to the Old Mutual Analytic Fund on December 9, 2005. Each
shareholder received a number of shares of the Old Mutual Analytic Fund equal in
dollar value to the AIC Analytic Fund as of December 9, 2005. The Old Mutual
Analytic Fund has the same investment objectives and policies and substantially
the same risks, policies, restrictions and limitations as the AIC Analytic Fund.
The Old Mutual Analytic Fund has changed its fiscal year end from December 31 to
July 31 beginning with fiscal year 2006.
In the normal course of business, the Funds may enter into various agreements
that provide for general indemnifications. Each Fund's maximum exposure under
these arrangements is unknown as any potential exposure involves future claims
that may be made against each Fund. However, based on experience, the Funds
expect the risk of loss to be remote.
2. SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------------------------------------
The following is a summary of the significant accounting policies followed by
the Funds.
Use of Estimates in the Preparation of Financial Statements - The preparation of
financial statements, in conformity with accounting principles generally
accepted in the United States of America, requires management to make estimates
and assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
Security Valuation - Investment securities of a Fund, including securities sold
short, that are listed on a securities exchange, and for which market quotations
are readily available, are valued at the last quoted sales price at the close of
trading on the New York Stock Exchange ("NYSE") (normally 4:00 p.m., Eastern
Time) each day that the NYSE is open. Investment securities of a Fund that are
quoted on a national market system are valued at the official closing price
provided by NASDAQ, or if there is none, at the last sales price. The Funds use
pricing services to report the market value of securities in the portfolios; if
the pricing service is not able to provide a price, or the pricing service quote
of valuation is inaccurate or does not reflect the market value of the security,
prices may be obtained through market quotations from independent
broker/dealers. If market quotations from these sources are not readily
available, securities are valued in accordance with Fair Value Procedures
established by the Board of Trustees of the Trust (the "Board"). The Trust's
Fair Value Procedures are implemented through a Fair Value Committee (the
"Committee") designated by the Board. Some of the more common reasons that may
necessitate that a security be valued using Fair Value Procedures include: the
security's trading has been halted or suspended; the security has been de-listed
from a national exchange; the security's primary trading market is temporarily
closed at a time when, under normal conditions, it would be open; or the
security's primary pricing source is not able or willing to provide a price.
When a security is valued in accordance with the Fair Value Procedures, the
Committee will determine the value after taking into consideration relevant
information reasonably available to the Committee. The valuation is assigned to
Fair Valued Securities for purposes of calculating a Fund's net asset value
("NAV"). Debt securities (other than short-term obligations), including listed
issues, are valued on the basis of valuations furnished by a pricing service
which utilizes electronic data processing techniques to determine valuations for
normal institutional size trading units of debt securities, without exclusive
145
NOTES TO FINANCIAL STATEMENTS - continued
AS OF JULY 31, 2007
reliance upon exchange or over-the-counter prices. Short-term obligations with
maturities of 60 days or less may be valued at amortized cost, which
approximates market value. Under this valuation method, acquisition discounts
and premiums are accreted and amortized ratably to maturity and are included in
interest income.
Foreign securities traded on the foreign exchanges in the Western Hemisphere are
valued based upon quotations from the primary market in which they are traded
and are translated from the local currency into U.S. dollars using current
exchange rates. In addition, if quotations are not readily available, or if the
values have been materially affected by events occurring after the closing of a
foreign market, assets may be valued by another method that the Board believes
accurately reflects fair value.
Foreign securities traded in countries outside the Western Hemisphere are fair
valued daily by utilizing the quotations of an independent pricing service,
unless the Fund's investment advisor, Old Mutual Capital, Inc. (the "Advisor")
determines that use of another valuation methodology is appropriate. The pricing
service uses statistical analyses and quantitative models to adjust local prices
using factors such as subsequent movement and changes in the prices of indexes,
securities and exchange rates in other markets in determining fair value as of
the time the Funds calculate the NAVs.
Valuation of Options and Futures - Options are valued at the last quoted sales
price. If there is no such reported sale on the valuation date, long option
positions are valued at the most recent bid price, and short option positions
are valued at the most recent ask price. Futures contracts are valued at the
settlement price established each day by the board of exchange on which they are
traded. The daily settlement prices for financial futures are provided by an
independent source.
Security Transactions and Investment Income - Security transactions are
accounted for on the date the securities are purchased or sold (trade date).
Dividend income, dividend expense on securities sold short and distributions to
shareholders are recognized on the ex-dividend date; interest income and expense
is recognized on the accrual basis and includes amortization of premiums and
accretion of discounts on investments. Non-cash dividends included in dividend
income, if any, are recorded at the fair market value of the securities
received. Costs used in determining realized capital gains and losses on the
sale of investment securities are those of the specific securities sold adjusted
for the accretion and amortization of acquisition discounts and premiums during
the respective holding periods, if applicable.
Dividends and Distributions - Dividends from net investment income for the Funds
are declared at least annually, if available, except Old Mutual Asset Allocation
Conservative Portfolio and Old Mutual Asset Allocation Balanced Portfolio for
which dividends are declared at least quarterly, if available. Distributions of
net realized capital gains, for each Fund, are generally made to shareholders
annually, if available.
Foreign Withholding Taxes - The Funds may be subject to taxes imposed by
countries in which they invest with respect to their investments in issuers
existing or operating in such countries. Such taxes are generally based on
income earned. The Funds accrue such taxes when the related income is earned.
Forward Foreign Currency Contracts - The Funds may enter into forward foreign
currency contracts as hedges against specific transactions, fund positions or
anticipated fund positions. All commitments are "marked-to-market" daily at the
applicable foreign exchange rate, and any resulting unrealized gains or losses
are recorded accordingly. The Funds realize gains and losses at the time the
forward contracts are extinguished. Unrealized gains or losses on outstanding
positions in forward foreign currency contracts held at the close of the period
are recognized as ordinary income or loss for Federal income tax purposes. The
Funds could be exposed to risk if the counterparties to the contracts are unable
to meet the terms of the contract and from unanticipated movements in the value
of a foreign currency relative to the U.S. dollar. Finally, the risk exists that
losses could exceed amounts disclosed on the Statements of Assets and
Liabilities.
Investments in Real Estate Investment Trusts ("REIT") - Dividend income is
recorded based on the income included in distributions received from the REIT
investments using published REIT reclassifications including some management
estimates when actual amounts are not available. Distributions received in
excess of this estimated amount are recorded as a reduction of the cost of
investments or reclassified to capital gains. The actual amounts of income,
return of capital and capital gains are only determined by each REIT after its
fiscal year-end, and may differ from the estimated amounts.
Tri-Party Repurchase Agreements - Securities pledged as collateral for
repurchase agreements are held by a third party custodian bank until the
respective agreements mature. Provisions of the repurchase agreements and
procedures adopted by the Board requires that the market value of the collateral
including accrued interest thereon, is sufficient in the event of default by the
counterparty. If the counterparty defaults and the value of the collateral
declines, or if the counterparty enters into insolvency proceedings, realization
of the collateral by a Fund may be delayed or limited.
TBA Purchase Commitments - The Funds may enter into "TBA" (to be announced)
purchase commitments to purchase securities for a fixed price at a future date,
typically not exceeding 45 days. TBA purchase commitments may be considered
securities in themselves, and involve a risk of loss if the value of the
security to be purchased declines prior to settlement date. This risk is in
addition to the risk of decline in the value of each Fund's other assets.
Unsettled TBA purchase commitments are valued at the current market value of the
underlying securities, according to the procedures described under "Security
Valuation" above.
Mortgage Dollar Rolls - The Funds may enter into mortgage dollar rolls
(principally using TBAs) in which each Fund sells mortgage securities for
delivery in the current month and simultaneously contracts to repurchase
substantially similar securities at an agreed-upon price on a fixed date. Each
Fund accounts for such dollar rolls under the purchases and sales method and
receives compensation as
146
consideration for entering into the commitment to repurchase. Each Fund must
maintain liquid securities having a value not less than the repurchase price
(including accrued interest) for such dollar rolls. The market value of the
securities that each Fund is required to purchase may decline below the agreed
upon repurchase price of those securities.
The counterparty receives all principal and interest payments, including
prepayments, made in respect of a security subject to such a contract while it
is the holder. Mortgage dollar rolls may be renewed with a new purchase and
repurchase price and a cash settlement made on settlement date without physical
delivery of the securities subject to the contract.
Foreign Currency Conversion - The books and records of the Funds are maintained
in U.S. dollars. Foreign currency amounts are converted into U.S. dollars on the
following basis:
(i) market value of investment securities, other assets and liabilities at
the current rate of exchange; and
(ii) purchases and sales of investment securities, income and expenses at
the relevant rates of exchange prevailing on the respective dates of
such transactions.
The Funds do not isolate that portion of gains and losses on investment
securities that is due to changes in the foreign exchange rates from that which
is due to changes in market prices of such securities.
The Funds report gains and losses on foreign currency related transactions as
components of realized gains and losses for financial reporting purposes,
whereas such components are treated as ordinary income or loss for Federal
income tax purposes.
Futures Contracts - The Funds may utilize futures contracts primarily to hedge
against changes in security prices. Upon entering into a futures contract, the
Funds will deposit securities for the initial margin with its custodian in a
segregated account. Subsequent payments, which are dependent on the daily
fluctuations in the value of the underlying instrument, are made or received by
the Funds each day (daily variation margin) and are recorded as unrealized gains
or losses until the contracts are closed. When the contract is closed, the Funds
record a realized gain or loss equal to the difference between the proceeds from
(or cost of) the closing transactions and the Fund's basis in the contract.
Risks of entering into futures contracts include the possibility that a change
in the value of the contract may not correlate with the changes in the value of
the underlying instruments. Second, it is possible that a lack of liquidity for
futures contracts could exist in the secondary market, resulting in an inability
to close a futures position prior to its maturity date. Third, the purchase of a
futures contract involves the risk that the Funds could lose more than the
original margin deposit required to initiate the futures transaction.
Options - The Funds may write or purchase financial options contracts primarily
to hedge against changes in security prices, or securities that the Funds intend
to purchase, against fluctuations in fair value caused by changes in prevailing
market interest rates. When the Funds write or purchase an option, an amount
equal to the premium received or paid by the Funds is recorded as a liability or
an asset and is subsequently adjusted to the current market value of the option
written or purchased. Premiums received or paid from writing or purchasing
options which expire unexercised are treated by the Funds on the expiration date
as realized gains or losses. The difference between the premium and the amount
paid or received on effecting a closing purchase or sale transaction, including
brokerage commissions, is also treated as a realized gain or loss. If an option
is exercised, the premium paid or received is added to the cost of the purchase
or proceeds from the sale in determining whether the Funds have realized a gain
or a loss on investment transactions. The Funds, as writers of an option, may
have no control over whether the underlying securities may be sold (call) or
purchased (put) and as a result bear the market risk of an unfavorable change in
the price of the security underlying the written option.
Collateralized Mortgage Obligations (CMOs) - CMOs are hybrids between
mortgage-backed bonds and mortgage pass-through securities. Similar to a bond,
CMOs usually pay interest monthly and have a more focused range of principal
payment dates than pass-through securities. While CMOs may be collateralized by
whole mortgage loans, CMOs are more typically collateralized by mortgage-backed
securities guaranteed by Government National Mortgage Association, Federal Home
Loan Mortgage Corporation or Federal National Mortgage Association and their
income streams.
A Real Estate Mortgage Investment Conduit (REMIC) is a CMO that qualifies for
special tax treatment under the Internal Revenue Code of 1986, as amended, and
invests in certain mortgages primarily secured by interests in real property and
other permitted investments.
CMOs are structured into multiple classes, each bearing a different stated
maturity. Each class of CMO or REMIC certificate, often referred to as a
"tranche," is issued at a specific interest rate and must be fully retired by
its final distribution date. Generally, all classes of CMOs or REMIC
certificates pay or accrue interest monthly. Investing in the lowest tranche of
CMOs and REMIC certificates involves risks similar to those associated with
investing in equity securities.
Short Sales - As consistent with the Old Mutual Analytic Fund's and Old Mutual
Analytic Global Fund's investment objectives, the Old Mutual Analytic Fund and
the Old Mutual Analytic Global Fund may engage in short sales that are
"uncovered." Uncovered short sales are transactions under which a Fund sells a
security it does not own. To complete such a transaction, a Fund must borrow the
security to make delivery to the buyer. The Fund then is obligated to replace
the security borrowed by purchasing the security at the market price at the time
of the replacement. The price at such time may be more or less than the price at
which the security was sold by the Fund. Until the security is replaced, the
Fund is required to pay the lender amounts equal to any dividends or interest
that accrue during the period of the loan, which is recorded as an expense on
the Statement of Operations. To borrow the security, the Fund also may be
required to pay a premium,
147
NOTES TO FINANCIAL STATEMENTS - continued
AS OF JULY 31, 2007
which would decrease proceeds of the security sold. The proceeds of the short
sale will be retained by the broker, to the extent necessary to meet margin
requirements, until the short position is closed out. A gain, limited to the
price at which the Fund sells the security short, or a loss, unlimited in size,
will be recognized upon the close of a short sale.
Until a Fund closes its short position or replaces the borrowed security, it
will: (a) maintain a segregated account containing cash or liquid securities at
such a level that (i) the amount deposited in the account plus the amount
deposited with the broker as collateral will equal the current value of the
security sold short; and (ii) the amount deposited in the segregated account
plus the amount deposited with the broker as collateral will not be less than
the market value of the security at the time the security was sold short, or (b)
otherwise cover the Fund's short positions.
Offering Costs - All offering costs incurred with the start up of the Funds are
being amortized on a straight line basis over a period of twelve months from
commencement of operations. As of July 31, 2007, the Funds have fully amortized
their offering costs.
Payments by Affiliate - During the fiscal year ended July 31, 2006, the Analytic
Defensive Equity Fund was reimbursed by the Advisor for a net asset value error
of $65,161. At July 31, 2007, the Old Mutual Clay Finlay Emerging Markets Fund
had a receivable from an affiliate of $3,500 for trading errors. This amount is
included in "Other Receivables" on the Statement of Assets and Liabilities.
Other - Expenses that are directly related to one of the Funds are charged
directly to that Fund. Other operating expenses are prorated to the Funds on the
basis of relative net assets. Class specific expenses, such as distribution and
service fees, are borne by that class. Income, other expenses and realized and
unrealized gains and losses of a Fund are allocated to the respective class on
the basis of the relative net assets each day.
The Funds have an arrangement with the transfer agent, DST Systems, Inc.,
whereby interest earned on uninvested cash balances is used to offset a portion
of the transfer agent expense. The transfer agent expenses shown in the
Statements of Operations are in total and do not reflect the expense reductions,
if any, which are shown separately.
The Funds impose a 2% redemption/exchange fee on total redemption proceeds
(after applicable deferred sales charges) of any shareholder redeeming shares
(including redemption by exchange) of the Funds within 10 calendar days of their
purchase. The Funds charge the redemption/exchange fee to discourage market
timing by those shareholders initiating redemptions or exchanges to take
advantage of short-term market movements. The redemption fee will be imposed to
the extent that the number of Fund shares redeemed exceeds the number of Fund
shares that have been held for more than 10 calendar days. In determining how
long shares of the Fund have been held, shares held by the investor for the
longest period of time will be sold first. The Funds will retain the fee by
crediting Paid-in Capital. For the year ended July 31, 2007, the following
redemption fees were collected by the Funds.
Class A Class C Class Z Institutional Class
- ------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio $ 40 $ - $ - $-
Old Mutual Asset Allocation Balanced Portfolio 76 239 - -
Old Mutual Asset Allocation Moderate Growth Portfolio 65 189 - -
Old Mutual Asset Allocation Growth Portfolio 26 429 - -
Old Mutual Analytic Defensive Equity Fund 25,139 764 - -
Old Mutual Analytic Global Defensive Equity Fund 40 - - -
Old Mutual Clay Finlay China Fund 22 2,183 48 -
Old Mutual Clay Finlay Emerging Markets Fund 81 - - -
Old Mutual Copper Rock Emerging Growth Fund 1,367 - - -
Old Mutual International Equity Fund - - 100 -
- ------------------------------------------------------------------------------------------------------------------
Amounts designated as "-" are either $0 or have been rounded to $0.
148
3. INVESTMENT ADVISORY FEES, ADMINISTRATIVE FEES AND OTHER TRANSACTIONS WITH
AFFILIATES
- --------------------------------------------------------------------------------
Investment Advisor - Old Mutual Capital, Inc. is an indirect, wholly owned
subsidiary of Old Mutual (US) Holdings Inc. ("OMUSH"), which is a direct, wholly
owned subsidiary of OM Group (UK), which is a direct, wholly owned subsidiary of
Old Mutual plc., a London-Exchange listed international financial services firm.
The Funds and the Advisor are parties to Investment Advisory Agreements (the
"Advisory Agreements"), under which the Advisor is paid a monthly fee that is
calculated daily and paid monthly, at an annual rate based on the average daily
net assets of each Fund, as follows:
Management Fee Asset Level
- --------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio 0.850% Less than $1 billion
0.825% From $1 billion to $2 billion
0.800% From $2 billion to $3 billion
0.775% Greater than $3 billion
Old Mutual Asset Allocation Balanced Portfolio 0.900% Less than $1 billion
0.875% From $1 billion to $2 billion
0.850% From $2 billion to $3 billion
0.825% Greater than $3 billion
Old Mutual Asset Allocation Moderate Growth Portfolio 0.900% Less than $1 billion
0.875% From $1 billion to $2 billion
0.850% From $2 billion to $3 billion
0.825% Greater than $3 billion
Old Mutual Asset Allocation Growth Portfolio 0.950% Less than $1 billion
0.925% From $1 billion to $2 billion
0.900% From $2 billion to $3 billion
0.875% Greater than $3 billion
Old Mutual Analytic Defensive Equity Fund 0.950% N/A
Old Mutual Analytic Global Defensive Equity Fund 1.150% Less than $1 billion
1.125% From $1 billion to $2 billion
1.100% From $2 billion to $3 billion
1.075% Greater than $3 billion
Old Mutual Clay Finlay China Fund 1.350% Less than $1 billion
1.325% From $1 billion to $2 billion
1.300% From $2 billion to $3 billion
1.275% Greater than $3 billion
Old Mutual Clay Finlay Emerging Markets Fund 1.150% Less than $1 billion
1.125% From $1 billion to $2 billion
1.100% From $2 billion to $3 billion
1.075% Greater than $3 billion
Old Mutual Copper Rock Emerging Growth Fund 0.900% N/A
Old Mutual International Equity Fund 1.000% Less than $1 billion
0.975% From $1 billion to $2 billion
0.950% From $2 billion to $3 billion
0.925% Greater than $3 billion
149
NOTES TO FINANCIAL STATEMENTS - continued
AS OF JULY 31, 2007
Expense Limitation Agreements - In the interest of limiting expenses of the
Funds, the Advisor has entered into expense limitation agreements ("Expense
Limitation Agreements") pursuant to which the Advisor has agreed, in writing, to
waive or limit its fees and to assume other expenses of the Funds to the extent
necessary to limit the total annual expenses to a specified percentage of the
Funds' average daily net assets through the dates specified below.
The expense limitations are as follows:
Institutional Expiration Date
Class A Class C Class Z Class of Expense Limitation
- ------------------------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio 1.50% 2.25% 1.25% 1.25% December 31, 2008
Old Mutual Asset Allocation Balanced Portfolio 1.55% 2.30% 1.30% 1.30% December 31, 2008
Old Mutual Asset Allocation Moderate Growth Portfolio 1.55% 2.30% 1.30% 1.30% December 31, 2008
Old Mutual Asset Allocation Growth Portfolio 1.60% 2.35% 1.35% 1.35% December 31, 2008
Old Mutual Analytic Defensive Equity Fund 1.45% 2.20% 1.20% 1.15% December 8, 2007
Old Mutual Analytic Global Defensive Equity Fund 1.95% 2.70% 1.70% 1.40% December 31, 2008
Old Mutual Clay Finlay China Fund 2.10% 2.85% 1.85% 1.55% December 31, 2007 (1)
Old Mutual Clay Finlay Emerging Markets Fund 2.10% 2.85% 1.85% 1.35% December 31, 2007 (2)
Old Mutual Copper Rock Emerging Growth Fund 1.55% 2.30% 1.30% 1.10% July 31, 2007 (3)
Old Mutual International Equity Fund 1.70% 2.45% 1.45% 1.20% December 31, 2007 (4)
- ------------------------------------------------------------------------------------------------------------------------------------
1 The Advisor has entered into an expense limitation agreement effective
January 1, 2008 to limit expenses of Class A, Class C, Class Z and
Institutional Class shares of the Old Mutual Clay Finlay China Fund to
1.95%, 2.70%, 1.70% and 1.40%, respectively.
2 The Advisor has entered into an expense limitation agreement effective
January 1, 2008 to limit expenses of Class A, Class C, Class Z and
Institutional Class shares of the Old Mutual Clay Finlay Emerging Markets
Fund to 2.00%, 2.75%, 1.75% and 1.25%, respectively.
3 The Advisor has entered into an expense limitation agreement effective
August 1, 2007 to limit expenses of Class A, Class C, Class Z and
Institutional Class shares of the Old Mutual Copper Rock Emerging Growth
Fund to 1.67%, 2.42%, 1.42% and 1.22%, respectively.
4 The Advisor has entered into an expense limitation agreement effective
January 1, 2008 to limit expenses of Class A, Class C, Class Z and
Institutional Class shares of the Old Mutual International Equity Fund to
1.52%, 2.27%, 1.27% and 1.02%, respectively.
Reimbursement by the Asset Allocation Funds, Old Mutual Analytic Fund and Old
Mutual Copper Rock Fund of the advisory fees waived and other expenses paid by
the Advisor pursuant to the applicable Expense Limitation Agreements may be made
at a later date when a Fund has reached a sufficient asset size to permit
reimbursement to be made without causing the total annual expense rate of the
Fund to exceed the expense limitation. Consequently, no reimbursement by these
Funds will be made unless: (i) the Fund's assets exceed $75 million; (ii) such
reimbursement does not cause the operating expenses of the Fund in the year of
reimbursement to exceed the expense limitation in effect in the year for which
fees are being reimbursed; and (iii) the payment of such reimbursement was
approved by the Board. Moreover, to the extent that the Advisor reimburses
advisory fees or absorbs operating expenses of a Fund, the Advisor may seek
payment of such amounts within two fiscal years after the fiscal year in which
fees were reimbursed or absorbed. Reimbursement by the International Funds and
Old Mutual Analytic Global Fund of the advisory fees waived and other expenses
paid by the Advisor pursuant to the applicable Expense Limitation Agreements may
be made up to three years after the expenses were reimbursed or absorbed if such
reimbursement does not cause the operating expenses of the Fund in the year of
reimbursement to exceed the expense limitation in effect in the year for which
fees are being reimbursed. At July 31, 2007, the Advisor may seek reimbursement
of previously waived and reimbursed fees as follows:
Expires 2008 Expires 2009 Expires 2010 Total
- -------------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio $ 167,678 $ 154,527 $ - $ 322,205
Old Mutual Asset Allocation Balanced Portfolio 206,398 200,220 - 406,618
Old Mutual Asset Allocation Moderate Growth Portfolio 342,419 268,330 - 610,749
Old Mutual Asset Allocation Growth Portfolio 332,765 261,446 - 594,211
Old Mutual Analytic Defensive Equity Fund 2,068,795 3,329,500 - 5,398,295
Old Mutual Analytic Global Defensive Equity Fund - 22,507 162,997 185,504
Old Mutual Clay Finlay China Fund - 92,417 147,900 240,317
Old Mutual Clay Finlay Emerging Markets Fund - 84,661 100,033 184,694
Old Mutual Copper Rock Emerging Growth Fund 228,745 189,970 - 418,715
Old Mutual International Equity Fund - 90,035 119,522 209,557
- -------------------------------------------------------------------------------------------------------------------------
150
Sub-Advisory Agreements - The Trust, on behalf of the Asset Allocation Funds,
and the Advisor have entered into a sub-advisory agreement (the "Ibbotson
Sub-Advisory Agreement") with Ibbotson Associates Advisors, LLC ("Ibbotson").
Ibbotson is a wholly owned subsidiary of Ibbotson Associates, Inc., which is a
wholly owned subsidiary of Morningstar, Inc. For the services provided and
expenses incurred pursuant to the Ibbotson Sub-Advisory Agreement, Ibbotson is
entitled to receive from the Advisor a sub-advisory fee with respect to the
average daily net assets of each of the Asset Allocation Funds, which is
computed and paid monthly at an annual rate equal to the greater of (i) 0.08%
for average daily net assets up to $250 million, 0.07% for average daily net
assets from $250 million to $500 million, 0.06% for average daily net assets
from $500 million to $750 million, 0.05% for average daily net assets from $750
million to $1 billion, 0.04% for average daily net assets from $1 billion to $2
billion and 0.03% for average daily net assets over $2 billion, or (ii)
$200,000.
The Trust, on behalf of the Asset Allocation Funds and the Old Mutual
International Equity Fund, and the Advisor have entered into sub-advisory
agreements (collectively, the "Acadian Sub-Advisory Agreement") with Acadian
Asset Management, Inc. ("Acadian"). Acadian is a wholly owned subsidiary of
OMUSH. For the services provided and expenses incurred pursuant to the Acadian
Sub-Advisory Agreement, Acadian is entitled to receive from the Advisor a
sub-advisory fee with respect to the average daily net assets of such portion of
the Funds managed by Acadian, which is computed and paid monthly at an annual
rate of 0.45% and 0.60%, for the Asset Allocation Funds and Old Mutual
International Equity Fund, respectively. For the Old Mutual International Equity
Fund, Acadian is entitled to receive the sub-advisory fee, net of 50% of any
waivers, reimbursement payments, supermarket fees and alliance fees waived,
reimbursed or paid by the Advisor and net of all breakpoints
The Trust, on behalf of the Asset Allocation Funds, the Old Mutual Analytic
Fund, and the Old Mutual Analytic Global Fund and the Advisor have entered into
sub-advisory agreements (collectively, the "Analytic Sub-Advisory Agreement")
with Analytic Investors, Inc. ("Analytic"). Analytic is a wholly owned
subsidiary of OMUSH. For the services provided and expenses incurred pursuant to
the Analytic Sub-Advisory Agreement, Analytic is entitled to receive from the
Advisor a sub-advisory fee with respect to the average daily net assets of such
portion of the Funds managed by Analytic, which is computed and paid monthly at
an annual rate of 0.35%, 0.70% and 0.80% for the Asset Allocation Funds, the Old
Mutual Analytic Fund and the Old Mutual Analytic Global Fund, respectively. For
the Old Mutual Analytic Global Fund, Analytic is entitled to receive the
sub-advisory fee, net of 50% of any breakpoints, waivers, reimbursement
payments, supermarket fees and alliance fees waived, reimbursed or paid by the
Advisor.
The Trust, on behalf of the Asset Allocation Funds, and the Advisor have entered
into a sub-advisory agreement (the "BHMS Sub-Advisory Agreement") with Barrow,
Hanley, Mewhinney & Strauss, Inc. ("Barrow Hanley"). Barrow Hanley is a wholly
owned subsidiary of OMUSH. For the services provided and expenses incurred
pursuant to the BHMS Sub-Advisory Agreement, Barrow Hanley is entitled to
receive from the Advisor a sub-advisory fee with respect to the average daily
net assets of such portion of the Asset Allocation Funds managed by Barrow
Hanley, which is computed and paid monthly at an annual rate of 0.15% for the
U.S. Intermediate Fixed Income mandate, 0.15% for the U.S. Core Fixed Income
mandate, 0.35% for the U.S. Large Cap Value mandate, 0.45% for the U.S. Mid Cap
Value mandate and 0.50% for the U.S. Small Cap Value mandate.
The Trust, on behalf of the Asset Allocation Funds and the International Funds,
and the Advisor have entered into sub-advisory agreements (collectively, the
"Clay Finlay Sub-Advisory Agreement") with Clay Finlay Inc. ("Clay Finlay").
Clay Finlay is a wholly owned subsidiary of OMUSH. For the services provided and
expenses incurred pursuant to the Clay Finlay Sub-Advisory Agreement, Clay
Finlay is entitled to receive from the Advisor a sub-advisory fee with respect
to the average daily net assets of such portion of the Asset Allocation Funds
managed by Clay Finlay, which is computed and paid monthly at an annual rate of
0.45% for the International Large Cap Equity mandate and 0.50% for the Emerging
Markets Equity mandate. Clay Finlay is entitled to receive from the Advisor a
sub-advisory fee with respect to the average daily net assets of such portion of
the International Funds managed by Clay Finlay, which is computed and paid
monthly at an annual rate of 1.00%, 0.80% and 0.60% of the Old Mutual Clay
Finlay China Fund, Old Mutual Clay Finlay Emerging Markets Fund and Old Mutual
International Equity Fund, respectively. For the International Funds, Clay
Finlay is entitled to receive the sub-advisory fee net of 50% of any waivers,
reimbursement payments, supermarket fees and alliance fees waived, reimbursed or
paid by the Advisor and net of all breakpoints.
The Trust, on behalf of the Asset Allocation Funds, and the Advisor have entered
into a sub-advisory agreement (the "Dwight Sub-Advisory Agreement") with Dwight
Asset Management Company ("Dwight"). Dwight is a wholly owned subsidiary of
OMUSH. For the services provided and expenses incurred pursuant to the Dwight
Sub-Advisory Agreement, Dwight is entitled to receive from the Advisor a
sub-advisory fee with respect to the average daily net assets of such portion of
the Asset Allocation Funds managed by Dwight, which is computed and paid monthly
at an annual rate of 0.10% for the Cash Management mandate, 0.15% for the U.S.
Intermediate Fixed Income mandate, 0.15% for the U.S. Core Fixed Income mandate
and 0.25% for the U.S. High Yield Fixed Income mandate.
The Trust, on behalf of the Asset Allocation Funds, and the Advisor have entered
into a sub-advisory agreement (the "THB Sub-Advisory Agreement") with Thomson
Horstmann & Bryant, Inc. ("THB"). THB is a wholly owned subsidiary of OMUSH. For
the services provided and expenses incurred pursuant to the THB Sub-Advisory
Agreement, THB is entitled to receive from the Advisor a sub-advisory fee with
respect to the average daily net assets of such portion of the Asset Allocation
Funds managed by THB, which is computed and paid monthly at an annual rate of
0.60% for the U.S. Small Cap Value mandate and 0.50% for the U.S. Mid Cap Value
mandate.
The Trust, on behalf of the Asset Allocation Funds, and the Advisor have entered
into a sub-advisory agreement, as amended (the "Heitman Sub-Advisory Agreement")
with Heitman Real Estate Securities LLC ("Heitman"). Heitman is a wholly owned
subsidiary of Heitman LLC, which is owned 50% by Heitman senior executives and
50% by Old Mutual (HFL) Inc., a wholly owned subsidiary of OMUSH. For the
services provided and expenses incurred pursuant to the Heitman Sub-Advisory
Agreement, Heitman is entitled to receive from the Advisor a sub-advisory fee
with respect to the average daily net assets of such portion of the Asset
Allocation Funds managed by Heitman which is computed and paid monthly at an
annual rate of 0.40%.
151
NOTES TO FINANCIAL STATEMENTS - continued
AS OF JULY 31, 2007
The Trust, on behalf of the Asset Allocation Funds, and the Advisor have entered
into a sub-advisory agreement (the "LRC Sub-Advisory Agreement") with Liberty
Ridge Capital, Inc. ("Liberty Ridge"). Liberty Ridge is a wholly owned
subsidiary of OMUSH. For the services provided and expenses incurred pursuant to
the LRC Sub-Advisory Agreement, Liberty Ridge is entitled to receive from the
Advisor a sub-advisory fee with respect to the average daily net assets of such
portion of the Asset Allocation Funds managed by Liberty Ridge, which is
computed and paid monthly at an annual rate of 0.35% for the U.S. Large Cap
Blend mandate, 0.45% for the U.S. Mid Cap Equity mandate and 0.50% for the U.S.
Small Cap Blend mandate.
The Trust, on behalf of the Asset Allocation Funds, and the Advisor have entered
into a sub-advisory agreement (the "Provident Sub-Advisory Agreement") with
Provident Investment Counsel ("Provident"). Provident is a wholly owned
subsidiary of OMUSH. For the services provided and expenses incurred pursuant to
the Provident Sub-Advisory Agreement, Provident is entitled to receive from the
Advisor a sub-advisory fee with respect to the average daily net assets of such
portion of the Asset Allocation Funds managed by Provident, which is computed
and paid monthly at an annual rate of 0.35% for the U.S. Large Cap Growth
mandate and 0.45% for the U.S. Mid Cap Growth mandate.
The Trust, on behalf of the Asset Allocation Funds, and the Advisor have entered
into a sub-advisory agreement (the "Rogge Sub-Advisory Agreement") with Rogge
Global Partners PLC ("Rogge"). Rogge is a majority owned subsidiary of OMUSH.
For the services provided and expenses incurred pursuant to the Rogge
Sub-Advisory Agreement for the Asset Allocation Funds, Rogge is entitled to
receive from the Advisor a sub-advisory fee with respect to the average daily
net assets of such portion of the Asset Allocation Funds managed by Rogge, which
is computed and paid monthly at an annual rate of 0.25%.
The Trust, on behalf of the Asst Allocation Funds, and the Advisor have entered
into a sub-advisory agreement (the "TS&W Sub-Advisory Agreement") with Thompson,
Siegel & Walmsley, LLC ("TS&W"). TS&W is a wholly owned subsidiary of OMUSH. For
the services provided and expenses incurred pursuant to the TS&W Sub-Advisory
Agreement, TS&W is entitled to receive from the Advisor a sub-advisory fee with
respect to the average daily net assets of such portion of the Asset Allocation
Funds managed by TS&W, which is computed and paid monthly at an annual rate of
0.35% for the U.S. Large Cap Value mandate, 0.40% for the U.S. All Cap Value
mandate, 0.45% for the U.S. Mid Cap Value mandate, 0.475% for the U.S. Small/Mid
Cap Value mandate and 0.50% for the U.S. Small Cap Value mandate.
The Trust, on behalf of the Asset Allocation Funds and the Old Mutual Copper
Rock Fund, and the Advisor have entered into sub-advisory agreements
(collectively, the "Copper Rock Sub-Advisory Agreement") with Copper Rock
Capital Partners, LLC ("Copper Rock"). OMUSH owns 60% of the limited liability
company interests of Copper Rock. For the services provided and expenses
incurred pursuant to the Copper Rock Sub-Advisory Agreement, Copper Rock is
entitled to receive from the Advisor a sub-advisory fee with respect to the
average daily net assets of such portion of the Funds managed by Copper Rock,
which is computed and paid monthly at an annual rate of 0.55% and 0.60%, for the
Asset Allocation Funds and Old Mutual Copper Rock Fund, respectively.
The Sub-Advisory Agreements obligate the sub-advisors, other than Ibbotson, to:
(i) manage the investment operations of the assets managed by the sub-advisor
and the composition of the investment portfolio comprising such assets,
including the purchase, retention and disposition thereof in accordance with the
Fund's investment objective, policies and limitations; (ii) provide supervision
of the assets managed by the sub-advisor and to determine from time to time what
investment and securities will be purchased, retained or sold on behalf of the
Fund and what portion of the assets managed by the sub-advisor will be invested
or held uninvested in cash; and (iii) determine the securities to be purchased
or sold on behalf of the Fund in connection with such assets and to place orders
with or through such persons, brokers or dealers to carry out the policy with
respect to brokerage set forth in the Prospectuses or as the Board or the
Advisor may direct from time to time, in conformity with federal securities
laws. The Ibbotson Sub-Advisory Agreement obligates Ibbotson to: (i) serve as
the strategic asset allocation consultant and sub-advisor to the Advisor for
investment model creation and maintenance of each Asset Allocation Fund,
consistent with the selection of sub-advisors, based upon Ibbotson's
recommendations related to appropriate market sectors and investment strategies;
(ii) recommend a continuous investment allocation program for each Asset
Allocation Fund in accordance with each Asset Allocation Fund's respective
investment objectives, policies and restrictions as stated in the Prospectuses;
and (iii) monitor and make recommendations to the Advisor regarding possible
changes to the sub-advisors and their investment strategies.
Administrative Services Agreement - The Trust and Old Mutual Fund Services (the
"Administrator"), a wholly owned subsidiary of the Advisor, entered into an
Administrative Services Agreement (the "Administrative Agreement"), pursuant to
which the Administrator oversees the administration of the Trust's and each
Fund's business and affairs, including regulatory reporting and all necessary
office space, equipment, personnel and facilities, as well as services performed
by various third parties. The Administrator is entitled to a fee from the Trust,
which is calculated daily and paid monthly, as follows:
Average Daily Net Assets Annual Fee Rate
- ---------------------------------------------------------
$0 to $500 million 0.10%
> $500 million up to $1 billion 0.09%
> $1 billion up to $1.5 billion 0.08%
> $1.5 billion 0.07%
- ---------------------------------------------------------
152
The Administrative Agreement provides that the Administrator will not be liable
for any error of judgment or mistake of law or for any loss suffered by the
Trust in connection with the matters to which the Administrative Agreement
relates, except a loss resulting from willful misfeasance, bad faith or gross
negligence on the part of the Administrator in the performance of its duties.
The Administrative Agreement will continue in effect unless terminated by either
party upon not less than 90 days' prior written notice to the other party. The
Administrator and SEI Investments Global Funds Services (the
"Sub-Administrator") entered into a Sub-Administrative Services Agreement (the
"Sub-Administrative Agreement"), pursuant to which the Sub-Administrator assists
the Administrator in connection with the administration of the business and
affairs of the Trust. SEI Investments Management Corporation ("SEI
Investments"), which is a wholly-owned subsidiary of SEI Investments Company,
owns all beneficial interest in the Sub-Administrator. Under the
Sub-Administrative Agreement, the Administrator pays the Sub-Administrator fees
at an annual rate calculated as follows: the greater sum (higher value) which
results from making the following calculations (A) a fee based on the average
daily net assets of the Trust, the Old Mutual Advisor Funds II and the Old
Mutual Insurance Series Fund of: (i) 0.0165% of the first $10 billion, plus (ii)
0.0125% of the next $10 billion, plus (iii) 0.010% of the excess over $20
billion and (B) a fee based on the aggregate number of Funds of the Trust, Old
Mutual Advisor Funds II and Old Mutual Insurance Series Fund calculated at the
sum of between $50,000 and $60,000 per Fund, depending on the total number of
funds. The Sub-Administrative Agreement provides that the Sub-Administrator will
not be liable for any error of judgment or mistake of law or for any loss
suffered by the Trust in connection with the matters to which the
Sub-Administrative Agreement relates, except a loss resulting from willful
misfeasance, bad faith or negligence on the part of the Sub-Administrator in the
performance of its duties. The Administrator has provided notice to the
Sub-Administrator of its intent to terminate the Sub-Administrative Agreement.
Distribution Agreement - Old Mutual Investment Partners (the "Distributor"), a
wholly owned subsidiary of the Advisor, and the Trust are parties to a
distribution agreement (the "Distribution Agreement"), pursuant to which the
Distributor serves as principal underwriter for the Trust's shares. The
Distributor receives no compensation for serving in such capacity, except as
provided in separate Distribution Plans and Service Plans.
The Distribution Agreement is renewable annually. The Distribution Agreement may
be terminated by the Distributor, by a majority vote of the Trustees who are not
"interested persons" (as defined in the 1940 Act) and have no financial interest
in the Distribution Agreement or by a majority vote of the outstanding
securities of the Trust upon not more than 90 days' written notice by either
party or upon assignment by the Distributor.
The Trust has adopted a Distribution Plan for each of Class A and Class C shares
pursuant to Rule 12b-1 under the 1940 Act to enable the Class A and Class C
shares of each Fund to directly and indirectly bear certain expenses relating to
the distribution of such shares. The Trust has also adopted a Service Plan to
enable the Class A and Class C shares of each Fund to directly and indirectly
bear certain expenses relating to the shareholder servicing and/or personal
account maintenance of the holders of such shares. Each of the Distribution
Plans and Service Plans are compensation plans, which means that they compensate
the Distributor or third-party broker-dealer or financial intermediary
regardless of the expenses actually incurred by such persons.
Pursuant to the Distribution Plans for Class A and Class C shares, the Trust
will pay to the Distributor a monthly fee at an annual aggregate rate not to
exceed (i) 0.25% of the average net asset value of the Class A shares of each
Fund and (ii) 0.75% of the average net asset value of the Class C shares of each
Fund, as determined at the close of each business day during the month, which is
to compensate the Distributor for services provided and expenses incurred by it
in connection with the offering and sale of Class A or Class C shares, which may
include, without limitation, the payment by the Distributor to investment
dealers of commissions on the sale of Class A or Class C shares, as set forth in
the then current prospectus or statement of additional information with respect
to Class A and Class C shares and interest and other financing costs.
The amount of such payments shall be determined by the Trust's disinterested
Trustees from time to time. Currently, Class A shares are not authorized to pay
distribution fees and Class C shares are authorized to pay the maximum amount of
distribution fees.
Pursuant to the Service Plans for Class A and Class C shares, the Trust will pay
to the Distributor or other third-party financial intermediaries a fee at an
annual aggregate rate not to exceed 0.25% of the average net asset value of
Class A and Class C shares, which is for maintaining or improving services
provided to shareholders by the Distributor and investment dealers, financial
institutions and 401(k) plan service providers. The amount of such payments
shall be determined by the Trust's disinterested Trustees from time to time.
Currently, both Class A and Class C shares are authorized to pay the maximum
amount of service fees.
The Distributor will prepare and deliver written reports to the Board on a
regular basis (at least quarterly) setting forth the payments made pursuant to
the Distribution Plans and the Service Plans, and the purposes for which such
expenditures were made, as well as any supplemental reports as the Board may
from time to time reasonably request.
Except to the extent that the Administrator, Sub-Administrator, Advisor or
sub-advisors may benefit through increased fees from an increase in the net
assets of the Trust which may have resulted in part from the expenditures, no
interested person of the Trust nor any Trustee of the Trust who is not an
"interested person" (as defined in the 1940 Act) of the Trust has a direct or
indirect financial interest in the operation of the Distribution or Service
Plans or any related agreement.
153
NOTES TO FINANCIAL STATEMENTS - continued
AS OF JULY 31, 2007
Of the service and distribution fees the Distributor received for the period
ended July 31, 2007, it retained the following:
Service Fees Distribution Fees
- -------------------------------------------------------------------------------------------------------------------------
Class A Class C Class C
- -------------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio $ 1,241 $ 29,146 $ 87,558
Old Mutual Asset Allocation Balanced Portfolio 4,499 112,763 338,288
Old Mutual Asset Allocation Moderate Growth Portfolio 8,440 191,270 573,810
Old Mutual Asset Allocation Growth Portfolio 8,419 117,340 352,019
Old Mutual Analytic Defensive Equity Fund 138,137 466,286 1,398,859
Old Mutual Analytic Global Defensive Equity Fund 6,984 13,994 41,981
Old Mutual Clay Finlay China Fund 6,750 17,871 53,613
Old Mutual Clay Finlay Emerging Markets Fund 1,603 1,628 4,884
Old Mutual Copper Rock Emerging Growth Fund 6,988 950 2,851
Old Mutual International Equity Fund 473 1,412 4,235
- -------------------------------------------------------------------------------------------------------------------------
DST Systems, Inc. serves as the transfer agent and dividend disbursing agent of
the Funds. From time to time, the Funds may pay amounts to third parties that
provide sub-transfer agency and other administrative services relating to the
Fund to persons who beneficially own interests in the Fund.
U.S. Bank, N.A. serves as the custodian for each of the Asset Allocation Funds
and the Old Mutual Copper Rock Fund. The Bank of New York Mellon serves as
custodian of the International Funds and Old Mutual Analytic Global Fund. Union
Bank of California ("UBOC") serves as custodian of the Old Mutual Analytic Fund.
The Trust has provided written notice to U.S. Bank, N.A. and UBOC of its intent
to terminate the custodian agreement with these banks.
The Funds have entered into a shareholder servicing agreement with the
Administrator to provide shareholder support and other shareholder
account-related services. The shareholder service fees are reviewed periodically
and approved annually by the Board. Shareholder service fees paid to Old Mutual
Fund Services for the year ended July 31, 2007 were as follows:
- --------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio $ 1,399
Old Mutual Asset Allocation Balanced Portfolio 4,774
Old Mutual Asset Allocation Moderate Growth Portfolio 9,160
Old Mutual Asset Allocation Growth Portfolio 10,821
Old Mutual Analytic Defensive Equity Fund 12,616
Old Mutual Analytic Global Defensive Equity Fund 800
Old Mutual Clay Finlay China Fund 1,857
Old Mutual Clay Finlay Emerging Markets Fund 213
Old Mutual Copper Rock Emerging Growth Fund 767
Old Mutual International Equity Fund 316
- --------------------------------------------------------------------
From January 2006 to October 2006, the Funds were billed inaccurate shareholder
service fees as a result of a clerical error. The error was identified in
October 2006 and the Administrator reimbursed the Funds an amount aggregating
$186,761 to correct the impact of the error.
On September 7, 2004, the Board approved an agreement between the Funds and the
Administrator to provide shareholder related web development and maintenance
services. For its services for the year ended July 31, 2007, Old Mutual Fund
Services received a fee of $241,533, which was allocated to each Fund quarterly
based on average net assets.
Officers and Trustees of the Funds who are or were officers of the Advisor,
Administrator, Sub-Administrator or Distributor received no compensation from
the Funds.
154
4. INTERFUND LENDING
- --------------------------------------------------------------------------------
Pursuant to resolutions adopted by the Boards of Trustees of each of Old Mutual
Advisor Funds, Old Mutual Advisor Funds II and Old Mutual Insurance Series Fund
(together, the "Trusts"), on behalf of each series portfolio of the Trusts (the
"OM Funds"), each of the OM Funds may lend an amount up to its
prospectus-defined limitations to other OM Funds. All such lending shall be
conducted pursuant to the exemptive order granted by the Securities and Exchange
Commission on August 12, 2003 to the Trusts. The interest rate charged on the
loan is the average of the overnight repurchase agreement rate (highest rate
available to the OM Funds from investments in overnight repurchase agreements)
and the bank loan rate (Federal Funds Rate plus 50 basis points). None of the OM
Funds may borrow more than 10% of its assets.
The Funds had no outstanding borrowings or loans related to interfund lending at
any time during the year or period ended July 31, 2007.
5. INVESTMENT TRANSACTIONS
- --------------------------------------------------------------------------------
The cost of securities purchased and the proceeds from securities sold and
matured, other than short-term investments, for the Funds, for the year ended
July 31, 2007 were as follows:
Purchases (000) Sales and Maturities (000)
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Government Other U.S. Government Other
- ------------------------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio $28,700 $ 30,341 $21,734 $ 25,825
Old Mutual Asset Allocation Balanced Portfolio 61,175 152,511 42,593 120,904
Old Mutual Asset Allocation Moderate Growth Portfolio 40,622 227,963 30,585 180,130
Old Mutual Asset Allocation Growth Portfolio - 200,148 - 139,656
Old Mutual Analytic Defensive Equity Fund - 2,091,196 - 1,792,083
Old Mutual Analytic Global Defensive Equity Fund - 75,058 - 33,129
Old Mutual Clay Finlay China Fund - 101,090 - 77,087
Old Mutual Clay Finlay Emerging Markets Fund - 11,534 - 6,372
Old Mutual Copper Rock Emerging Growth Fund - 162,749 - 150,214
Old Mutual International Equity Fund - 14,242 - 8,089
- ------------------------------------------------------------------------------------------------------------------------------------
Transactions in option contracts written in the Old Mutual Analytic Fund and the
Old Mutual Analytic Global Fund for the year ended July 31, 2007, were as
follows:
Old Mutual Analytic Old Mutual Analytic Global
Defensive Equity Fund Defensive Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Number of Number of
Contracts Premiums Contracts Premiums
- ------------------------------------------------------------------------------------------------------------------------------------
Outstanding at July 31, 2006 7,825 $ 10,584,951 16 $ 35,702
Options written 129,500 208,263,261 3,372 5,409,004
Options terminated in closing purchasing transactions (108,605) (190,943,875) (2,246) (4,287,692)
Options expired (10,470) (10,134,384) (673) (353,571)
- ------------------------------------------------------------------------------------------------------------------------------------
Outstanding at July 31, 2007 18,250 $ 17,769,953 469 $ 803,443
- ------------------------------------------------------------------------------------------------------------------------------------
155
NOTES TO FINANCIAL STATEMENTS - continued
AS OF JULY 31, 2007
6. SHARE TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Old Mutual Old Mutual
Asset Allocation Old Mutual Asset Allocation Old Mutual
Conservative Asset Allocation Moderate Growth Asset Allocation
Portfolio Balanced Portfolio Portfolio Growth Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
8/1/06 8/1/05 8/1/06 8/1/05 8/1/06 8/1/05 8/1/06 8/1/05
to to to to to to to to
7/31/07 7/31/06 7/31/07 7/31/06 7/31/07 7/31/06 7/31/07 7/31/06
- ------------------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed (000):
Class A
Shares Issued 644 490 1,435 1,973 1,866 2,744 1,989 1,845
Shares Issued upon Reinvestment of Distributions 23 13 83 31 65 12 33 8
Shares Redeemed (359) (331) (763) (480) (1,478) (493) (658) (348)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 308 172 755 1,524 453 2,263 1,364 1,505
- ------------------------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 1,264 1,336 4,228 3,676 5,662 5,782 3,545 3,022
Shares Issued upon Reinvestment of Distributions 22 9 82 21 81 9 53 9
Shares Redeemed (714) (377) (1,074) (493) (1,864) (509) (932) (177)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class C Share Transactions 572 968 3,236 3,204 3,879 5,282 2,666 2,854
- ------------------------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 44 - 46 - 38 - 43 -
Shares Issued upon Reinvestment of Distributions 1 - - - - - - -
Shares Redeemed - - - - - - - -
- ------------------------------------------------------------------------------------------------------------------------------------
Total Class Z Share Transactions 45 - 46 - 38 - 43 -
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 16 21 86 97 337 116 512 685
Shares Issued upon Reinvestment of Distributions 17 13 37 21 15 5 22 5
Shares Redeemed (54) (2) (147) (18) (72) (4) (64) (24)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Institutional Class Share Transactions (21) 32 (24) 100 280 117 470 666
- ------------------------------------------------------------------------------------------------------------------------------------
Net Increase in Shares Outstanding 904 1,172 4,013 4,828 4,650 7,662 4,543 5,025
- ------------------------------------------------------------------------------------------------------------------------------------
* Inception date of the Fund.
(1) On December 9, 2005, the Old Mutual Analytic Defensive Equity Fund (the
"Fund") acquired substantially all of the net assets of the Analytic
Defensive Equity Fund (the "Predecessor Fund"), a series of the Advisors'
Inner Circle Fund. The operations of the Fund prior to the acquisition were
those of the Predecessor Fund. The Fund changed its fiscal year from
December 31 to July 31 beginning in the fiscal year 2006. See Note 1 in
Notes to Financial Statements.
(2) Class A and Class C shares commenced operations on March 31, 2005.
(3) The Fund's Z Class is the successor class of the Predecessor Fund's
Institutional Class; the Fund's Institutional Class is new.
(4) Institutional Class Shares commenced operations on December 9, 2005.
Amounts designated as "-" are either 0 or have been rounded to 0.
156
- -----------------------------------------------------------------------------------------------------------------------------
Old Mutual
Old Mutual Analytic Analytic Global Old Mutual
Defensive Equity Defensive Equity Clay Finlay China
Fund(1) Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------
8/1/06 1/1/06 1/1/05 8/1/06 5/31/06* 8/1/06 12/30/05*
to to to to to to to
7/31/07 7/31/06 12/31/05 7/31/07 7/31/06 7/31/07 7/31/06
- -----------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed (000):
Class A
Shares Issued 27,227 15,217 10,244 2,187 26 1,876 200
Shares Issued upon Reinvestment of Distributions 24 - 227 - - 22 -
Shares Redeemed (7,714) (2,997) (349) (63) - (933) (9)
- -----------------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 19,537 12,220 10,122(2) 2,124 26 965 191
- -----------------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 11,805 9,281 6,911 1,720 11 840 60
Shares Issued upon Reinvestment of Distributions - - 61 - - 5 -
Shares Redeemed (3,482) (594) (197) (32) - (209) -
- -----------------------------------------------------------------------------------------------------------------------------
Total Class C Share Transactions 8,323 8,687 6,775(2) 1,688 11 636 60
- -----------------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 1,307 947 24,270 46 - 240 2
Shares Issued upon Reinvestment of Distributions 22 - 895 - - - -
Shares Redeemed (2,982) (8,009) (12,346) - - (93) -
- -----------------------------------------------------------------------------------------------------------------------------
Total Class Z Share Transactions (1,653) (7,062) 12,819(3) 46 - 147 2
- -----------------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 1,938 517 - 1 250 11 951
Shares Issued upon Reinvestment of Distributions 1 - - - - 24 -
Shares Redeemed (34) - - - - (1) -
- -----------------------------------------------------------------------------------------------------------------------------
Total Institutional Class Share Transactions 1,905 517 -(4) 1 250 34 951
- -----------------------------------------------------------------------------------------------------------------------------
Net Increase in Shares Outstanding 28,112 14,362 29,716 3,859 287 1,782 1,204
- -----------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------
Old Mutual Old Mutual
Clay Finlay Copper Rock Old Mutual
Emerging Markets Emerging Growth International Equity
Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------
8/1/06 12/30/05* 8/1/06 8/1/05 8/1/06 12/30/05*
to to to to to to
7/31/07 7/31/06 7/31/07 7/31/06 7/31/07 7/31/06
- ------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed (000):
Class A
Shares Issued 344 33 1,674 2,711 158 23
Shares Issued upon Reinvestment of Distributions 2 - - - 1 -
Shares Redeemed (93) (2) (871) (732) (21) -
- ------------------------------------------------------------------------------------------------------------------
Total Class A Share Transactions 253 31 803 1,979 138 23
- ------------------------------------------------------------------------------------------------------------------
Class C
Shares Issued 99 11 22 42 98 16
Shares Issued upon Reinvestment of Distributions 1 - - - 1 -
Shares Redeemed (6) (3) (19) (5) (10) -
- ------------------------------------------------------------------------------------------------------------------
Total Class C Share Transactions 94 8 3 37 89 16
- ------------------------------------------------------------------------------------------------------------------
Class Z
Shares Issued 64 - 43 - 75 -
Shares Issued upon Reinvestment of Distributions - - - - - -
Shares Redeemed - - - - (1) -
- ------------------------------------------------------------------------------------------------------------------
Total Class Z Share Transactions 64 - 43 - 74 -
- ------------------------------------------------------------------------------------------------------------------
Institutional Class
Shares Issued 1 250 1,734 5,065 208 500
Shares Issued upon Reinvestment of Distributions 9 - - - 19 -
Shares Redeemed - - (1,322) (602) (4) -
- ------------------------------------------------------------------------------------------------------------------
Total Institutional Class Share Transactions 10 250 412 4,463 223 500
- ------------------------------------------------------------------------------------------------------------------
Net Increase in Shares Outstanding 421 289 1,261 6,479 524 539
- ------------------------------------------------------------------------------------------------------------------
157
NOTES TO FINANCIAL STATEMENTS - continued
AS OF JULY 31, 2007
7. FOREIGN HOLDINGS RISK
- --------------------------------------------------------------------------------
Each Fund may invest in foreign securities. Investing in the securities of
foreign issuers involves special risks and considerations not typically
associated with investing in U.S. companies. These risks and considerations
include differences in accounting, auditing and financial reporting standards,
generally higher commission rates on foreign portfolio transactions, the
possibility of expropriation or confiscatory taxation, adverse changes in
investment or exchange control regulations, political instability which could
affect U.S. investment in foreign countries and potential restrictions on the
flow of international capital and currencies. Foreign issuers may also be
subject to less government regulation than U.S. companies. Moreover, the
dividends and interest payable on foreign securities may be subject to foreign
withholding taxes, thus reducing the net amount of income available for
distribution to a Fund's shareholders. Further, foreign securities often trade
with less frequency and volume than domestic securities and, therefore, may
exhibit greater price volatility. Changes in foreign exchange rates will affect,
favorably or unfavorably, the value of those securities which are denominated or
quoted in currencies other than the U.S. dollar.
8. FEDERAL TAX INFORMATION
- --------------------------------------------------------------------------------
Each Fund has qualified and intends to continue to qualify as a regulated
investment company under Subchapter M of the Internal Revenue Code and to
distribute substantially all of its taxable income and net capital gains.
Accordingly, no provision has been made for Federal income taxes.
Dividends from net investment income and distributions from net realized capital
gains are determined in accordance with U.S. Federal income tax regulations,
which may differ from those amounts determined under accounting principles
generally accepted in the United States of America. These book/tax differences
are either temporary or permanent in nature. To the extent these differences are
permanent, they are charged or credited to Paid-in Capital or accumulated net
realized gain, as appropriate, in the period that the differences arise.
Accordingly, the following permanent differences as of July 31, 2007, primarily
attributable to certain net operating losses, different treatment for gains and
losses on paydowns of mortgage- and asset-backed securities for tax purposes,
reclassifications of long-term capital gain distributions on Real Estate
Investment Trust securities, reclassifications of capital gain distributions
investments in Passive Foreign Investment Companies, foreign currency
translation and return of capital which, for tax purposes, are not available to
offset future income, were reclassified to the following accounts.
Increase/(Decrease) Increase/(Decrease)
Accumulated Undistributed
Net Realized Net Investment
Gain Income
(000) (000)
- --------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio $ 100 $ (100)
Old Mutual Asset Allocation Balanced Portfolio 267 (267)
Old Mutual Asset Allocation Moderate Growth Portfolio 339 (339)
Old Mutual Analytic Defensive Equity Fund (4,963) 4,963
Old Mutual Analytic Global Defensive Equity Fund 10 (10)
Old Mutual Clay Finlay China Fund 19 (19)
Old Mutual Copper Rock Emerging Growth Fund (923) 923
Old Mutual International Equity Fund 5 (5)
- --------------------------------------------------------------------------------------------------------
The tax character of dividends and distributions declared during the year or
periods ended July 31, 2007 and 2006 were as follows:
Ordinary Long Term
Income Capital Gain Total
(000) (000) (000)
- -----------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio
2007 $ 889 $ 140 $ 1,029
2006 562 - 562
Old Mutual Asset Allocation Balanced Portfolio
2007 2,576 1,142 3,718
2006 1,230 - 1,230
Old Mutual Asset Allocation Moderate Growth Portfolio
2007 2,292 1,107 3,399
2006 500 - 500
- ---------------------------------------------------------------------------------------------------------------
158
Ordinary Long Term
Income Capital Gain Total
(000) (000) (000)
- -------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Growth Portfolio
2007 $ 1,357 $ 840 $ 2,197
2006 419 3 422
Old Mutual Analytic Defensive Equity Fund
2007 887 - 887
2006 - - -
2005* 16,715 3,195 19,910
Old Mutual Analytic Global Defensive Equity Fund
2007 14 - 14
2006 - - -
Old Mutual Clay Finlay China Fund
2007 1,116 - 1,116
2006 - - -
Old Mutual Clay Finlay Emerging Markets Fund
2007 178 - 178
2006 - - -
Old Mutual International Equity Fund
2007 261 - 261
2006 - - -
- -------------------------------------------------------------------------------------------------
* Based on previous fiscal year of December 31.
Amounts designated as "-" are either $0 or have been rounded to $0.
The Old Mutual Copper Rock Fund had no distributions during the years ended July
31, 2006 and 2007, respectively.
As of July 31, 2007, the components of Distributable Earnings/(Accumulated
Losses) were as follows:
Capital
Undistributed Undistributed Loss Post Post October Unrealized Other
Ordinary Long Term Carry- October Currency Appreciation/ Temporary
Income Capital Gain forwards Losses Losses (Depreciation) Differences Total
(000) (000) (000) (000) (000) (000) (000) (000)
- ------------------------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation
Conservative Portfolio $ 532 $ 495 $ - $ - $ - $ 1,905 $ (14) $ 2,918
Old Mutual Asset Allocation
Balanced Portfolio 4,911 2,259 - - (28) 11,425 (32) 18,535
Old Mutual Asset Allocation
Moderate Growth Portfolio 7,417 3,557 - - (114) 20,296 (18) 31,138
Old Mutual Asset Allocation
Growth Portfolio 4,969 2,430 - - (185) 16,179 (15) 23,378
Old Mutual Analytic
Defensive Equity Fund 51,192 - - (14,394) - 69,503 (16,514) 89,787
Old Mutual Analytic Global
Defensive Equity Fund 1,331 133 - - (46) (831) (348) 239
Old Mutual Clay Finlay
China Fund 9,125 1,624 - - (9) 13,262 - 24,002
Old Mutual Clay Finlay
Emerging Markets Fund 636 181 - - - 1,809 (8) 2,618
Old Mutual Copper Rock
Emerging Growth Fund 1,360 2,115 - - - 9,798 - 13,273
Old Mutual International
Equity Fund 529 245 - - (10) 1,377 - 2,141
- ------------------------------------------------------------------------------------------------------------------------------------
Amounts designated as "-" are either $0 or have been rounded to $0.
159
NOTES TO FINANCIAL STATEMENTS - concluded
AS OF JULY 31, 2007
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains. During the year ended July 31,
2007, the Analytic Defensive Equity Fund and Copper Rock Emerging Growth Fund
utilized $10,377,598 and $100,713 of capital loss carry-forwards to offset net
realized capital gains. Post-October losses represent losses realized on
investment transactions from November 1, 2006 through July 31, 2007 that, in
accordance with Federal income tax regulations the Funds may elect to defer and
treat as having arisen in the following fiscal year. The Federal tax cost,
aggregate gross unrealized appreciation and depreciation of investments,
excluding securities sold short and written option contracts, held by each Fund
at July 31, 2007 were as follows:
Net
Unrealized
Federal Tax Unrealized Unrealized Appreciation
Cost Appreciation Depreciation (Depreciation)
(000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio $ 44,693 $ 2,671 $ (769) $ 1,902
Old Mutual Asset Allocation Balanced Portfolio 168,800 15,548 (4,127) 11,421
Old Mutual Asset Allocation Moderate Growth Portfolio 216,963 26,442 (6,145) 20,297
Old Mutual Asset Allocation Growth Portfolio 162,466 21,744 (5,564) 16,180
Old Mutual Analytic Defensive Equity Fund 1,186,601 102,641 (35,554) 67,087
Old Mutual Analytic Global Defensive Equity Fund 52,503 1,382 (2,059) (677)
Old Mutual Clay Finlay China Fund 48,415 14,019 (757) 13,262
Old Mutual Clay Finlay Emerging Markets Fund 9,266 1,902 (92) 1,810
Old Mutual Copper Rock Emerging Growth Fund 94,076 13,566 (3,767) 9,799
Old Mutual International Equity Fund 12,726 1,634 (258) 1,376
- ----------------------------------------------------------------------------------------------------------------------------
9. NEW ACCOUNTING PRONOUNCEMENTS
- --------------------------------------------------------------------------------
In July 2006, the Financial Accounting Standards Board ("FASB") issued FASB
interpretation 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes". This
standard defines the threshold for recognizing the benefits of tax-return
positions in the financial statements as "more-likely-than-not" to be sustained
by the taxing authority and requires measurement of a tax position meeting the
more-likely-than-not criterion, based on the largest benefit that is more than
50 percent likely to be realized. FIN 48 is effective as of the beginning of the
first fiscal year beginning after December 15, 2006. The Funds will not be
required to adopt FIN 48 until January 31, 2008. At adoption, companies must
adjust their financial statements to reflect only those tax positions that are
more-likely-than-not to be sustained as of the adoption date. Based on its
analysis, the Advisor does not believe that the adoption of FIN 48 will have a
material impact to the Funds' financial statements upon adoption. However, the
Advisor's conclusions regarding FIN 48 may be subject to review and adjustment
at a later date based on factors including, but not limited to, further
implementation guidance expected from the FASB, and on-going analyses of and
changes to tax laws, regulations and interpretations thereof.
In September 2006, FASB issued Statement on Financial Accounting Standards
(SFAS) No. 157, "Fair Value Measurements." This standard establishes a single
authoritative definition of fair value, sets out a framework for measuring fair
value and requires additional disclosures about fair value measurements. SFAS
157 applies to fair value measurements already required or permitted by existing
standards. SFAS No. 157 is effective for financial statements issued for fiscal
years beginning after November 15, 2007 and interim periods within those fiscal
years. The changes to current generally accepted accounting principles from the
application of this statement relate to the definition of fair value, the
methods used to measure fair value and the expanded disclosures about fair value
measurements. As of July 31, 2007, the Funds do not believe the adoption of SFAS
No. 157 will impact the amounts reported in the financial statements, however,
additional disclosures may be required about the inputs used to develop the
measurements and the effect of certain of the measurements reported on the
statement of changes in net assets for a fiscal period.
160
REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of Old Mutual Advisor Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Old Mutual Asset Allocation
Conservative Portfolio, Old Mutual Asset Allocation Balanced Portfolio, Old
Mutual Asset Allocation Moderate Growth Portfolio, Old Mutual Asset Allocation
Growth Portfolio, Old Mutual Analytic Defensive Equity Fund, Old Mutual Analytic
Global Defensive Equity Fund, Old Mutual Clay Finlay China Fund, Old Mutual Clay
Finlay Emerging Markets Fund, Old Mutual Copper Rock Emerging Growth Fund and
Old Mutual International Equity Fund (ten of the thirteen funds constituting Old
Mutual Advisor Funds, hereafter referred to as the "Funds") at July 31, 2007 and
the results of each of their operations and the changes in each of their net
assets and the financial highlights for each of the periods indicated, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at July 31, 2007 by
correspondence with the custodian and brokers, provide a reasonable basis for
our opinion.
[PricewaterhouseCoopers LLP SIGNATURE]
September 24, 2007
161
NOTICE TO SHAREHOLDERS (Unaudited)
For shareholders that do not have a July 31, 2007 tax year end, this notice is
for informational purposes only. For shareholders with a July 31, 2007 tax year
end, please consult your tax advisor as to the pertinance of this notice. For
the fiscal year ended July 31, 2007, each Fund is designating the following
items with regard to distributions paid during the year.
Qualifying for
Corporate
Long Term Ordinary Dividends Qualifying
Capital Gain Income Total Received Dividend
Distribution Distribution Distributions Deduction (1) Income (2)
- ---------------------------------------------------------------------------------------------------------------------
Old Mutual Asset Allocation
Conservative Portfolio 13.65% 86.35% 100.00% 12.82% 16.40%
Old Mutual Asset Allocation
Balanced Portfolio 30.72% 69.28% 100.00% 17.95% 26.69%
Old Mutual Asset Allocation
Moderate Growth Portfolio 32.58% 67.42% 100.00% 22.54% 44.64%
Old Mutual Asset Allocation
Growth Portfolio 38.24% 61.76% 100.00% 18.57% 37.21%
Old Mutual Analytic
Defensive Equity Fund 0.00% 100.00% 100.00% 18.74% 16.85%
Old Mutual Analytic Global
Defensive Equity Fund (6) 0.00% 100.00% 100.00% 0.00% 25.52%
Old Mutual Clay Finlay
China Fund (7) 0.00% 100.00% 100.00% 0.45% 3.58%
Old Mutual Clay Finlay
Emerging Markets Fund (8) 0.00% 100.00% 100.00% 0.00% 7.92%
Old Mutual Copper Rock
Emerging Growth Fund 0.00% 0.00% 0.00% 0.00% 0.00%
Old Mutual International
Equity Fund (9) 0.00% 100.00% 100.00% 0.00% 36.25%
- ---------------------------------------------------------------------------------------------------------------------
Foreign
Investors
U.S. Qualified Qualified
Government Interest Short-Term
Interest (3) Income (4) Capital Gain (5)
- --------------------------------------------------------------------------------
Old Mutual Asset Allocation
Conservative Portfolio 14.52% 71.57% 100.00%
Old Mutual Asset Allocation
Balanced Portfolio 7.23% 26.15% 100.00%
Old Mutual Asset Allocation
Moderate Growth Portfolio 4.01% 22.34% 100.00%
Old Mutual Asset Allocation
Growth Portfolio 0.00% 0.00% 100.00%
Old Mutual Analytic
Defensive Equity Fund 3.96% 7.15% 0.00%
Old Mutual Analytic Global
Defensive Equity Fund (6) 2.85% 4.09% 0.00%
Old Mutual Clay Finlay
China Fund (7) 0.00% 0.30% 100.00%
Old Mutual Clay Finlay
Emerging Markets Fund (8) 0.00% 13.92% 100.00%
Old Mutual Copper Rock
Emerging Growth Fund 0.00% 0.00% 0.00%
Old Mutual International
Equity Fund (9) 0.00% 6.54% 100.00%
- --------------------------------------------------------------------------------
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and are reflected as a percentage of ordinary
Income distributions (the total of short term capital gain and net
investment income distributions).
(2) The percentage in this column represents the amount of "Qualifying Dividend
Income" as created by the Jobs and Growth Tax Relief Reconciliation Act of
2003 and is reflected as a percentage of ordinary income distributions (the
total of short term capital gain and net investment income distributions).
It is the intention of each of the aforementioned Funds to designate the
maximum amount permitted by law.
(3) "U.S. Government Interest" represents the amount of interest that was
derived from direct U.S. Government obligations and distributed during the
fiscal year. This amount is reflected as a percentage of total ordinary
income distributions (the total of short term capital gain and net
investment income distributions). Generally, interest from direct U.S.
Government obligations is exempt from state income tax. However, for
shareholders of the Old Mutal Advisor Funds who are residents of
California, Connecticut and New York, the statutory threshhold requirements
were not satisified to permit exemption of these amounts from state income.
(4) The percentage in this column represents the amount of "Qualifying Interest
Income" as created by the American Jobs Creation Act of 2004 and is
reflected as a percentage of net investment income distributions that is
exempt from U.S withholding tax when paid to foreign investors.
(5) The percentage in this column represents the amount of "Qualifying
Short-Term Capital Gain" as created by the American Jobs Creation Act of
2004 and is reflected as a percentage of short-term capital gain
distributions that is exempt from U.S withholding tax when paid to foreign
investors.
(6) The Fund intends to pass through a foreign tax credit to the shareholders.
For fiscal year ended 2007, the total amount of foreign source income is
$249,651. The total amount of foreign tax to be paid is $27,068. Your
allocable share of the foreign tax credit will be reported on Form 1099
DIV.
(7) The Fund intends to pass through a foreign tax credit to the shareholders.
For fiscal year ended 2007 the total amount of foreign source income is
$951,046. The total amount of foreign tax to be paid is $10,799. Your
allocable share of the foreign tax credit will be reported on Form 1099
DIV.
(8) The Fund intends to pass through a foreign tax credit to the shareholders.
For fiscal year ended 2007, the total amount of foreign source income is
$74,624. The total amount of foreign tax to be paid is $12,138. Your
allocable share of the foreign tax credit will be reported on Form 1099
DIV.
(9) The Fund intends to pass through a foreign tax credit to the shareholders.
For fiscal year end 2007, the total amount of foreign source income is
$191,549. The total amount of foreign tax to be paid is $26,162. Your
allocable share of the foreign tax credit will be reported on Form 1099
DIV.
162
PROXY VOTING AND PORTFOLIO HOLDINGS (Unaudited)
Proxy Voting
A description of the guidelines that the Trust uses to determine how to vote
proxies relating to portfolio securities is available (i) without charge, upon
request, by calling 888.772.2888 toll-free; (ii) on the Trust's website at
oldmutualfunds.com; and (iii) on the SEC's website at http://www.sec.gov.
Information about how the Funds voted proxies relating to portfolio securities
for the 12-month period ended June 30, 2007 is available on the Trust's website
at oldmutualfunds.com and on the SEC's website at http://www.sec.gov.
Portfolio Holdings
The Trust files a complete schedule of portfolio holdings with the SEC for the
first and third quarters of its fiscal year on Form N-Q. The Trust's Forms N-Q
are available on the SEC's website at http://www.sec.gov, or may be reviewed and
copied at the SEC's Public Reference Room in Washington D.C. Information on the
operation of the the Public Reference Room may be obtained by calling
1-800-SEC-0330 toll-free.
163
FUND EXPENSES EXAMPLE (Unaudited)
Six Month Hypothetical Expense Example July 31, 2007
Example. As a shareholder of a Fund you may pay two types of fees: transaction
fees and fund-related fees. Transaction fees may include transaction costs,
including sales charges (loads) on purchase payments, redemption fees, and
exchange fees. Fund-related fees may include ongoing expenses, including
management fees, distribution and/or service fees, and other fund expenses,
which are indirectly paid by shareholders and affect your investment return.
This Example is intended to help you understand your ongoing costs (in dollars)
of investing in the Funds and to compare these costs with the ongoing costs of
investing in other mutual funds. This Example is based on an investment of
$1,000 invested at the beginning of the period and held for the six-month period
ended July 31, 2007.
Actual Expenses. The first line for each share class in the following table
provides information about actual account values and actual expenses. The
Example includes, but is not limited to, management fees, 12b-1 fees, fund
accounting, custody and transfer agent fees. However, the Example does not
include client specific fees, such as the $10.00 fee charged to IRA accounts, or
the $10.00 fee charged for wire redemptions. The Example also does not include
portfolio trading commissions and related trading expenses. You may use this
information, together with the amount you invested, to estimate the expenses
that you paid over the period. Simply divide your account value by $1,000 (for
example, an $8,600 account value divided by $1,000 = 8.6), then multiply the
result by the number in the first line for each share class under the heading
entitled "Expenses Paid During Six Month Period" to estimate the expenses you
paid on your account during this period.
Hypothetical Example for Comparison Purposes. The second line for each share
class in the table provides information about hypothetical account values and
hypothetical expenses based on each Fund's actual expense ratio and an assumed
rate of return of 5% per year before expenses, which is not the Fund's actual
return. The hypothetical account values and expenses may not be used to estimate
the actual ending account balance or expenses you paid for the period. You may
use this information to compare the ongoing costs of investing in each Fund and
other funds. To do so, compare this 5% hypothetical example with the 5%
hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, this information
is useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
Annualized Expenses
Beginning Ending Expense Paid
Account Account Ratios During
Value Value For the Six Six Month
2/01/07 7/31/07 Month Period Period*
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio - Class A
- ----------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,029.70 1.50% $ 7.55
Hypothetical 5% Return 1,000.00 1,017.36 1.50 7.50
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,026.20 2.25 11.30
Hypothetical 5% Return 1,000.00 1,013.64 2.25 11.23
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio - Class Z
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,030.90 1.25 6.29
Hypothetical 5% Return 1,000.00 1,018.60 1.25 6.26
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Conservative Portfolio - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,031.80 1.25 6.30
Hypothetical 5% Return 1,000.00 1,018.60 1.25 6.26
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Balanced Portfolio - Class A
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,041.90 1.55 7.85
Hypothetical 5% Return 1,000.00 1,017.11 1.55 7.75
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Balanced Portfolio - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,038.50 2.30 11.63
Hypothetical 5% Return 1,000.00 1,013.39 2.30 11.48
- ----------------------------------------------------------------------------
Annualized Expenses
Beginning Ending Expense Paid
Account Account Ratios During
Value Value For the Six Six Month
2/01/07 7/31/07 Month Period Period*
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Balanced Portfolio - Class Z
- ----------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,043.90 1.30% $ 6.59
Hypothetical 5% Return 1,000.00 1,018.35 1.30 6.51
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Balanced Portfolio - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,043.90 1.30 6.59
Hypothetical 5% Return 1,000.00 1,018.35 1.30 6.51
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Moderate Growth Portfolio - Class A
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,040.10 1.55 7.84
Hypothetical 5% Return 1,000.00 1,017.11 1.55 7.75
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Moderate Growth Portfolio - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,036.60 2.30 11.61
Hypothetical 5% Return 1,000.00 1,013.39 2.30 11.48
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Moderate Growth Portfolio - Class Z
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,042.20 1.30 6.58
Hypothetical 5% Return 1,000.00 1,018.35 1.30 6.51
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Moderate Growth Portfolio - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,041.40 1.30 6.58
Hypothetical 5% Return 1,000.00 1,018.35 1.30 6.51
- ----------------------------------------------------------------------------
164
Annualized Expenses
Beginning Ending Expense Paid
Account Account Ratios During
Value Value For the Six Six Month
2/01/07 7/31/07 Month Period Period*
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Growth Portfolio - Class A
- ----------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,037.80 1.60% $ 8.08
Hypothetical 5% Return 1,000.00 1,016.86 1.60 8.00
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Growth Portfolio - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,034.20 2.35 11.85
Hypothetical 5% Return 1,000.00 1,013.14 2.35 11.73
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Growth Portfolio - Class Z
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,039.70 1.35 6.83
Hypothetical 5% Return 1,000.00 1,018.10 1.35 6.76
- ----------------------------------------------------------------------------
Old Mutual Asset Allocation Growth Portfolio - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,039.70 1.35 6.83
Hypothetical 5% Return 1,000.00 1,018.10 1.35 6.76
- ----------------------------------------------------------------------------
Old Mutual Analytic Defensive Equity Fund - Class A
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,009.70 1.55 7.72
Hypothetical 5% Return 1,000.00 1,017.60 1.55 7.75
- ----------------------------------------------------------------------------
Old Mutual Analytic Defensive Equity Fund - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,006.70 2.30 11.44
Hypothetical 5% Return 1,000.00 1,013.88 2.30 11.48
- ----------------------------------------------------------------------------
Old Mutual Analytic Defensive Equity Fund- Class Z
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,011.80 1.30 6.48
Hypothetical 5% Return 1,000.00 1,018.84 1.30 6.51
- ----------------------------------------------------------------------------
Old Mutual Analytic Defensive Equity Fund - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,011.80 1.24 6.19
Hypothetical 5% Return 1,000.00 1,019.09 1.24 6.21
- ----------------------------------------------------------------------------
Old Mutual Analytic Global Defensive Equity Fund - Class A
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,024.30 3.09 15.51
Hypothetical 5% Return 1,000.00 1,009.47 3.09 15.40
- ----------------------------------------------------------------------------
Old Mutual Analytic Global Defensive Equity Fund - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,019.90 3.84 19.23
Hypothetical 5% Return 1,000.00 1,005.75 3.84 19.10
- ----------------------------------------------------------------------------
Old Mutual Analytic Global Defensive Equity Fund - Class Z
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,025.20 2.84 14.26
Hypothetical 5% Return 1,000.00 1,010.71 2.84 14.16
- ----------------------------------------------------------------------------
Old Mutual Analytic Global Defensive Equity Fund - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,026.10 2.54 12.76
Hypothetical 5% Return 1,000.00 1,012.30 2.54 12.67
- ----------------------------------------------------------------------------
Old Mutual Clay Finlay China Fund - Class A
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,294.50 2.10 11.95
Hypothetical 5% Return 1,000.00 1,014.38 2.10 10.49
- ----------------------------------------------------------------------------
Old Mutual Clay Finlay China Fund - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,291.20 2.85 16.19
Hypothetical 5% Return 1,000.00 1,010.66 2.85 14.21
- ----------------------------------------------------------------------------
Annualized Expenses
Beginning Ending Expense Paid
Account Account Ratios During
Value Value For the Six Six Month
2/01/07 7/31/07 Month Period Period*
- ----------------------------------------------------------------------------
Old Mutual Clay Finlay China Fund - Class Z
- ----------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,296.70 1.85% $10.53
Hypothetical 5% Return 1,000.00 1,015.62 1.85 9.25
- ----------------------------------------------------------------------------
Old Mutual Clay Finlay China Fund - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,299.50 1.55 8.84
Hypothetical 5% Return 1,000.00 1,017.11 1.55 7.75
- ----------------------------------------------------------------------------
Old Mutual Clay Finlay Emerging Markets Fund - Class A
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,171.10 2.10 11.30
Hypothetical 5% Return 1,000.00 1,014.38 2.10 10.49
- ----------------------------------------------------------------------------
Old Mutual Clay Finlay Emerging Markets Fund - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,167.90 2.85 15.32
Hypothetical 5% Return 1,000.00 1,010.66 2.85 14.21
- ----------------------------------------------------------------------------
Old Mutual Clay Finlay Emerging Markets Fund - Class Z
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,173.60 1.85 9.97
Hypothetical 5% Return 1,000.00 1,015.62 1.85 9.25
- ----------------------------------------------------------------------------
Old Mutual Clay Finlay Emerging Markets Fund - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,176.50 1.35 7.29
Hypothetical 5% Return 1,000.00 1,018.10 1.35 6.76
- ----------------------------------------------------------------------------
Old Mutual Copper Rock Emerging Growth Fund - Class A
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,084.90 1.55 8.01
Hypothetical 5% Return 1,000.00 1,017.11 1.55 7.75
- ----------------------------------------------------------------------------
Old Mutual Copper Rock Emerging Growth Fund - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,081.80 2.30 11.87
Hypothetical 5% Return 1,000.00 1,013.39 2.30 11.48
- ----------------------------------------------------------------------------
Old Mutual Copper Rock Emerging Growth Fund - Class Z
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,086.30 1.30 6.72
Hypothetical 5% Return 1,000.00 1,018.35 1.30 6.51
- ----------------------------------------------------------------------------
Old Mutual Copper Rock Emerging Growth Fund - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,087.80 1.10 5.69
Hypothetical 5% Return 1,000.00 1,019.34 1.10 5.51
- ----------------------------------------------------------------------------
Old Mutual International Equity Fund - Class A
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,101.10 1.70 8.86
Hypothetical 5% Return 1,000.00 1,016.36 1.70 8.50
- ----------------------------------------------------------------------------
Old Mutual International Equity Fund - Class C
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,096.90 2.45 12.74
Hypothetical 5% Return 1,000.00 1,012.65 2.45 12.23
- ----------------------------------------------------------------------------
Old Mutual International Equity Fund - Class Z
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,102.40 1.45 7.56
Hypothetical 5% Return 1,000.00 1,017.60 1.45 7.25
- ----------------------------------------------------------------------------
Old Mutual International Equity Fund - Institutional Class
- ----------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,103.80 1.20 6.26
Hypothetical 5% Return 1,000.00 1,018.84 1.20 6.01
- ----------------------------------------------------------------------------
* Expenses 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 year period).
165
ACTIVITIES AND COMPOSITION OF THE BOARD OF TRUSTEES
AND OFFICERS OF THE TRUST - As of July 31, 2007 (Unaudited)
Trustees and Officers of the Trust
The management and affairs of the Trust are supervised by the Board under the
laws of the State of Delaware. The Board has approved contracts under which, as
described above, certain companies provide essential management services to the
Trust. The Board and executive officers of the Trust and their principal
occupations for the last five years are set forth below. Each may have held
other positions with the named companies during that period. The address for
each of the Trustees and executive officers of the Trust is 4643 South Ulster
Street, Suite 600, Denver, Colorado 80237. The Funds' Statement of Additional
Information includes additional information about the Funds' Trustees and is
available, without charge, upon request by calling 1-888-772-2888.
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Independent Trustees
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Position (s) Term of Office*
Held with and Length of Principal Occupation(s)
Name and Age the Trust Time Served During Past 5 Years
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L. Kent Moore Chairman Trustee Partner, WillSource Enterprise, LLC (oil and
(Age: 51) of the since 2004 gas exploration and production), since
Board and November 2005. Managing Director, High
Trustee Sierra Energy, LP (holding company of
natural resource related businesses),
2004 - 2005. Portfolio Manager, Janus
Capital (money management), 2000 - 2002.
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John R. Bartholdson Trustee Trustee Retired. Chief Financial Officer, The
(Age: 62) since 2004 Triumph Group, Inc. (manufacturing),
1992 - April 2007.
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Robert M. Hamje Trustee Trustee Retired. President and Chief Investment
(Age: 65) since 2004 Officer, TRW Investment Management
Company (investment management),
1984 - 2003.
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Jarrett B. Kling Trustee Trustee Managing Director, ING Clarion Real Estate
(Age: 64) since 2004 Securities (investment advisor).
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Interested Trustee and Advisory Trustee
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Julian F. Sluyters ** Interested Trustee, President and Chief Operating Officer,
(Age: 47) Trustee, President, Old Mutual Capital, Inc., since September
President, and 2006. President and Chief Executive
and Principal Officer, Scudder family of funds, 2004 -
Principal Executive December 2005. Managing Director, UBS
Executive Officer since Global Asset Management, and President
Officer 2006 and Chief Executive Officer, UBS Fund
Services, 2001 - 2003.
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Walter W. Driver, Jr.*** Advisory Advisory Chairman - Southeast, Goldman Sachs &
(Age: 62) Trustee Trustee Co., since January 2006. Chairman, King &
since 2006 Spalding LLP (law firm), 1970 -
January 2006.
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Independent Trustees
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Number of
Portfolios in the Old Other
Mutual Fund Family Directorships
Complex Overseen Held
Name and Age by Trustee by Trustee
- --------------------------------------------------------------------------------
L. Kent Moore 16 Foothills Energy Ventures, LLC,
(Age: 51) TS&W/Claymore Tax-Advantaged
Balanced Fund, and Old Mutual/
Claymore Long Short Fund.
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John R. Bartholdson 43 Old Mutual Insurance Series
(Age: 62) Fund, Old Mutual Advisor Funds
II, ING Clarion Real Estate
Income Fund, and ING Clarion
Global Real Estate Income Fund.
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Robert M. Hamje 16 TS&W/Claymore Tax-Advantaged
(Age: 65) Balanced Fund and Old Mutual/
Claymore Long-Short Fund.
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Jarrett B. Kling 16 Hirtle Callaghan Trust, ING
(Age: 64) Clarion Real Estate Income Fund,
ING Clarion Global Real Estate
Income Fund, and ING Clarion.
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Interested Trustee and Advisory Trustee
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Julian F. Sluyters ** 16 None
(Age: 47)
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Walter W. Driver, Jr.*** 16 Total Systems Services, Inc.
(Age: 62)
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* Trustee of the Trust until such time as his or her successor is duly elected
and appointed.
** Mr. Sluyters is a Trustee who may be deemed to be an "interested person" of
the Trust, as that term is defined in the 1940 Act, because he is an
officer of the Advisor.
*** Mr. Driver commenced service as a Trustee in May 2005. Effective January
20, 2006, he resigned as a Trustee. Effective January 23, 2006, the Board
appointed Mr. Driver an Advisory Trustee of the Trust, with no voting
rights.
166
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Officers
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Position Term of Office*
Held with and Length of Principal Occupation(s)
Name and Age the Trust Time Served During Past 5 Years
- ------------------------------------------------------------------------------------------------------------------------------------
James F. Lummanick Vice President Since 2005 Senior Vice President and Chief Compliance Officer,
(Age: 59) and Chief Old Mutual Capital, Inc., Old Mutual
Compliance Investment Partners and Old Mutual Fund Services,
Officer Inc., since 2005. Chief Compliance
Officer, Old Mutual Advisor Funds II and Old Mutual
Insurance Series Fund, since 2005.
Senior Vice President and Director of Compliance,
Calamos Advisors LLC, 2004 - 2005.
Vice President and Chief Compliance Officer,
Invesco Funds Group, Inc. 1996 - 2004.
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Andra C. Ozols Vice Since 2005 Senior Vice President, Secretary, and General Counsel,
(Age: 46) President Old Mutual Capital, Inc., since
and 2005. Executive Vice President (2004 - May 2005),
Secretary General Counsel and Secretary
(2002 - 2005 and January 1998 - October 1998),
and Vice President (2002 - 2004), ICON
Advisors, Inc. Director of ICON Management &
Research Corporation (2003 - 2005).
Executive Vice President (2004 - 2005),
General Counsel and Secretary (2002 -
2005) and Vice President (2002 - 2004), ICON
Distributors, Inc. Executive Vice
President and Secretary, ICON Insurance
Agency, Inc. (2004 - 2005). Vice
President (1999 - 2002) and Assistant General
Counsel (1998 - 2002), Founders
Asset Management LLC.
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Karen S. Proc Assistant Since 2005 Vice President (since 2006) and Associate
(Age: 37) Secretary General Counsel (since 2005), Old Mutual
Capital, Inc. Associate General Counsel,
Founders Asset Management LLC, 2002 - 2005.
Associate Attorney, Myer, Swanson, Adams &
Wolf, P.C., 1998 - 2002.
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Robert T. Kelly Treasurer and Since 2006 Vice President/Director, Old Mutual Capital, Inc.
(Age: 38) Principal and Old Mutual Fund Services, since
Financial October 2006. Vice President of Portfolio Accounting,
Officer Founders Asset Management LLC,
2000 - September 2006.
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Robert D. Lujan Assistant Since 2006 Fund Services Manager, Old Mutual Capital, Inc.,
(Age: 40) Treasurer since July 2006. Fund Accounting
Supervisor, Janus Capital Group, 2003 - July 2006.
Senior Fund Accountant, Janus
Capital Management L.L.C., 2001 - 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Kathryn A. Burns Assistant Since 2006 Regulatory Reporting Manager, Old Mutual Fund
(Age: 30) Treasurer Services, since August 2006. Manager
(2004 - July 2006) and Senior Associate (2001 - 2004),
PricewaterhouseCoopers LLP.
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* Officer of the Trust until such time as his or her successor is duly elected
and qualified.
167
CONSIDERATIONS OF THE BOARD IN APPROVING INVESTMENT
ADVISORY AGREEMENTS AND INVESTMENT SUB-ADVISORY
AGREEMENTS (UNAUDITED)
Summary of Advisory and Sub-Advisory Agreements Approved by the Board
Old Mutual Analytic Defensive Equity Fund (the "Analytic Fund") and Old Mutual
Copper Rock Emerging Growth Fund (the "Copper Rock Fund").
Analytic Investors, Inc.("Analytic") and Copper Rock Capital Partners, LLC
("Copper Rock"). On February 28, 2007, the Old Mutual Advisor Funds (the
"Trust") Board of Trustees (the "Board") approved the renewal of the investment
advisory agreement (the "Existing Advisory Agreement"), between Old Mutual
Advisor Funds (the "Trust") and Old Mutual Capital, Inc. ("OMCAP" or the
"Advisor"), for the provision by OMCAP of advisory services with respect to the
Analytic Fund and the Copper Rock Fund. The Board approved the renewal of the
Existing Advisory Agreement with respect to the Analytic Fund and the Copper
Rock Fund through July 31, 2007, in order to allow for the renewal cycle of the
Analytic Fund and the Copper Rock Fund to synchronize with the renewal schedule
for the majority of the other series funds of the Trust. On July 16, 2007, the
Board approved the renewal of the Existing Advisory Agreement for the provision
by OMCAP of advisory services with respect to the Analytic Fund and the Copper
Rock Fund through July 31, 2008. In addition, the Board approved the renewal of
the Sub-Advisory Agreements between OMCAP and Copper Rock, with respect to the
Copper Rock Fund (the "Copper Rock Fund Sub-Advisory Agreement"), and between
OMCAP and Analytic, with respect to the Analytic Fund ("Analytic Fund
Sub-Advisory Agreement") on July 16, 2007.
Old Mutual Asset Allocation Conservative Portfolio, Old Mutual Asset Allocation
Balanced Portfolio, Old Mutual Asset Allocation Moderate Growth Portfolio, and
Old Mutual Asset Allocation Growth Portfolio (the "Asset Allocation
Portfolios").
OMCAP; Acadian Asset Management, Inc. ("Acadian"); Analytic; Barrow Hanley
Mewhinney & Strauss, Inc. ("Barrow Hanley"); Clay Finlay Inc. ("Clay Finlay");
Dwight Asset Management Company ("Dwight"); Heitman Real Estate Securities LLC
("Heitman"); Liberty Ridge Capital, Inc. ("LRC"); Provident Investment Counsel
("PIC"); Rogge Global Partners PLC ("Rogge"); and Thompson, Seigel & Walmsley,
LLC ("TS&W"). On July 16, 2007, the Board approved the renewal of the Existing
Advisory Agreement, on behalf of the Asset Allocation Portfolios, as well as the
renewal of the investment sub-advisory agreements among the Trust, the Advisor,
and the following Asset Allocation Portfolio sub-advisors (collectively, the
"Asset Allocation Sub-Advisory Agreements"): Acadian; Analytic; Barrow Hanley;
Clay Finlay; Dwight; Heitman; LRC; PIC; Rogge; and TS&W (collectively, the
"Asset Allocation Portfolio Sub-Advisors"). The Board approved the Existing
Advisory Agreement, with respect to the Asset Allocation Portfolios, and the
Asset Allocation Sub-Advisory Agreements to continue in effect through July 31,
2008.
OMCAP. On July 16, 2007, the Board approved an amendment to Schedule A of the
Existing Advisory Agreement, to be effective on or around November 19, 2007
through July 31, 2008, to reflect reduced advisory fees for the Asset Allocation
Portfolios in conjunction with the Board's approval of the use of a fund of
funds structure for those Portfolios.
OMCAP; Rogge; PIC. On July 16, 2007, the Board approved an investment advisory
agreement between the Trust and OMCAP (the "New Advisory Agreement") for the
provision by OMCAP of advisory services with respect to the Old Mutual
International Bond Fund (the "Rogge Fund") and the Old Mutual PIC Mid-Cap Growth
Fund (the "PIC Fund"). On July 16, 2007, the Board also approved investment
sub-advisory agreements among the Trust, OMCAP, and each of Rogge and PIC for
the provision of investment sub-advisory services to the Rogge Fund and the PIC
Fund (the "Rogge Sub-Advisory Agreement" and the "PIC Sub-Advisory Agreement",
respectively).
The following discussion outlines the background of these proposals and the
Board's considerations.
Description of Advisor
Old Mutual Capital, Inc.
OMCAP was formed and registered as an investment advisor with the Securities and
Exchange Commission ("SEC") in May 2004. OMCAP is a wholly-owned subsidiary of
Old Mutual (US) Holdings Inc. ("OMUSH"), which is a wholly-owned subsidiary of
OM Group (UK) Limited, which, in turn, is a wholly-owned subsidiary of Old
Mutual plc, a London-exchange-listed international financial services firm. As
of July 31, 2007, OMCAP managed approximately $4.78 billion in mutual fund
assets. OMCAP has served as investment advisor to the Trust since its inception
and is an affiliate of the Sub-Advisors through common ownership by OMUSH.
Description of the Sub-Advisors (each, a "Sub-Advisor and, collectively, the
"Sub-Advisors")
Asset Allocation Portfolios' Sub-Advisors
Acadian, a Massachusetts corporation located at One Post Office Square, 20th
Floor, Boston, Massachusetts 02109, has provided investment management services
since 1977. As of July 31, 2007, Acadian had $79 billion in assets under
management. Acadian is a wholly-owned subsidiary of OMUSH.
168
Analytic, a California corporation located at 500 South Grand Avenue, 23rd
Floor, Los Angeles, California 90071, has provided investment management
services since 1970. As of July 31, 2007, Analytic had $11.7 billion in assets
under management. Analytic is a wholly-owned subsidiary of OMUSH.
Barrow Hanley, a Nevada corporation located at 2200 Ross Avenue, 31st Floor,
Dallas, Texas 75201, has provided investment management services since 1979. As
of July 31, 2007, Barrow, Hanley had $71.6 billion in assets under management.
Barrow Hanley is a wholly-owned subsidiary of OMUSH.
Clay Finlay, a New York corporation located at 200 Park Avenue, 56th Floor, New
York, New York 10166, is a global equity management firm founded in 1982 and
headquartered in New York, with offices in London and Tokyo. As of July 31,
2007, Clay Finlay had $6.3 billion in assets under management. Clay Finlay is a
wholly-owned subsidiary of OMUSH.
Dwight, a Delaware corporation located at 100 Bank Street, Suite 800,
Burlington, Vermont, 05401, has provided investment management services since
1975. As of July 31, 2007, Dwight had $62.3 billion in assets under management.
Dwight is a wholly-owned subsidiary of OMUSH.
Heitman, a Delaware limited liability company located at 191 North Wacker Drive,
Suite 2500, Chicago, Illinois 60606, has provided investment management services
to its clients since 1987. As of July 31, 2007, Heitman had $15.8 billion under
management. Heitman Real Estate Securities LLC is a wholly-owned subsidiary of
Heitman LLC, a Delaware limited liability company owned 50% by senior executives
within the Heitman organization and 50% by Old Mutual (HFL) Inc., a wholly-owned
subsidiary of OMUSH.
LRC, a Delaware corporation located at 1205 Westlakes Drive, Berwyn,
Pennsylvania 19312, has provided investment management services since 1982. As
of July 31, 2007, Liberty Ridge Capital had $559 million in assets under
management. Liberty Ridge Capital is a wholly-owned subsidiary of OMUSH.
PIC, a Massachusetts corporation located at 300 North Lake Avenue, Penthouse
Suite, Pasadena, California, 91101, has provided investment management services
since 1951. As of July 31, 2007, PIC had $2.9 billion in assets under
management. PIC is a wholly-owned subsidiary of OMUSH.
Rogge, a United Kingdom corporation located at Sion Hall, 56 Victoria
Embankment, London, England, United Kingdom EC4Y ODZ, has provided investment
management services since 1984. As of July 31, 2007, Rogge had $27.7 billion
under management. Rogge is a majority-owned subsidiary of OMUSH.
TS&W, a Virginia limited liability company located at 5000 Monument Avenue,
Richmond, Virginia 23230, has provided investment management services since
1969. As of July 31, 2007, TS&W had $8.2 billion in assets under management.
TS&W is a wholly-owned subsidiary of OMUSH.
Old Mutual Copper Rock Emerging Growth Fund Sub-Advisor
Copper Rock Capital Partners, LLC ("Copper Rock"), a Delaware limited liability
company located at 200 Clarendon Street, 53rd Floor, Boston, Massachusetts
02116, has provided investment management services since 2005. As of July 31,
2007, Copper Rock held discretionary management authority with respect to
approximately $2.4 million in assets under management. OMUSH owns 60% of the
limited liability company interests of Copper Rock.
Old Mutual Analytic Defensive Equity Fund Sub-Advisor
The Analytic Fund is sub-advised by Analytic, whose description is set forth,
above, under "Asset Allocation Portfolio Sub-Advisors."
Old Mutual International Bond Fund Sub-Advisor
The Rogge Fund is sub-advised by Rogge, whose description is set forth, above,
under "Asset Allocation Portfolio Sub-Advisors."
Old Mutual PIC Mid-Cap Growth Fund Sub-Advisor
The PIC Fund is sub-advised by PIC, whose description is set forth, above, under
"Asset Allocation Portfolio Sub-Advisors."
Considerations of the Board
This section describes the factors considered by the Board in approving: (1) the
renewal of the Existing Advisory Agreement for the provision by OMCAP of
investment advisory services to the Analytic Fund and the Copper Rock Fund
through July 31, 2007; (2) the renewal of the Existing Advisory Agreement with
respect to OMCAP's provision of investment advisory services to the Analytic and
Copper Rock Funds through July 31, 2008; (3) the renewal of the Copper Rock Fund
Sub-Advisory Agreement and the Analytic Fund Sub-Advisory Agreement through July
31, 2008; (4) The renewal of the Existing Advisory Agreement, on behalf of the
Asset Allocation Portfolios, through July 31, 2008; (5) the renewal of the Asset
Allocation Sub-Advisory Agreements through July 31, 2008; (6) an amendment to
Schedule A of the
169
CONSIDERATIONS OF THE BOARD IN APPROVING INVESTMENT
ADVISORY AGREEMENTS AND INVESTMENT SUB-ADVISORY
AGREEMENTS - continued (UNAUDITED)
Existing Advisory Agreement, to be effective on or around November 19, 2007
through July 31, 2008, to reflect reduced advisory fees for the Asset Allocation
Portfolios in connection with the Board's approval of the use of a fund of funds
structure for those Portfolios; and (7) the New Advisory Agreement, as well as
the Rogge Sub-Advisory Agreement and the PIC Sub-Advisory Agreement. (The
Existing Advisory Agreement, the New Advisory Agreement, the Asset Allocation
Sub-Advisory Agreements, the Copper Rock Fund Sub-Advisory Agreement, the
Analytic Fund Sub-Advisory Agreement, the Rogge Sub-Advisory Agreement, and the
PIC Sub-Advisory Agreement are referred to hereinafter, collectively, as the
"Agreements". The Asset Allocation Portfolios, the Analytic Fund, the Copper
Rock Fund, the Rogge Fund, and the PIC Fund are referred to hereinafter,
collectively, as the "Portfolios").
In determining whether it was appropriate to approve the Agreements, the Board
requested information, provided by the Advisor and each Sub-Advisor, which it
believed to be reasonably necessary to reach its conclusion. The Board carefully
evaluated this information and was advised by independent legal counsel with
respect to its deliberations. The Board received reports prepared by Lipper,
Inc. ("Lipper"), a mutual fund statistical service, detailing comparative mutual
fund advisory fees, expenses levels, and performance rankings (the "Lipper
Report(s)"). In considering the fairness and reasonableness of the Agreements,
the Board reviewed numerous factors, with respect to each applicable Portfolio
separately (except where one or more factors were inapplicable with respect to
the PIC Fund or the Rogge Fund because they are new), including the following:
o the nature of the services to be provided under the Agreements;
o the requirements of each Portfolio for the services provided by the
Advisor, where applicable, and the Sub-Advisors;
o the quality of the services provided, including information contained in
the Lipper Report(s) comparing the performance results of the Asset
Allocation Portfolios, the Analytic Fund, and the Copper Rock Fund with
those of similar types of funds, as well as with those of appropriate
market indices, which indicated that the performance of each Portfolio was
competitive;
o the fees payable for the services, noting in particular, with respect to
the Asset Allocation Portfolios, the pricing for a fund of managers
structure compared to a fund of funds structure;
o advisory fee levels compared to other similar investment accounts managed
by OMCAP and the Sub-Advisors;
o the total expenses of each Portfolio compared to those of each Portfolio's
respective peer group;
o the commitment of OMCAP to cap certain Portfolio expenses through the
contractual deferral of advisory fees and/or reimbursement of expenses, and
the fact that the Advisor may seek payment of such deferred fees or
reimbursement of such absorbed expenses within two fiscal years (three
fiscal years for the Rogge Fund and the PIC Fund) after the fiscal year in
which fees were deferred or expenses were absorbed, subject to the original
contractual expense limitation in effect at the time;
o the profitability of OMCAP and the Sub-Advisors with respect to their
relationship with each of the Portfolios;
o fall-out benefits received by the Advisor and Sub-Advisors, including
sources of revenue to OMCAP's affiliates through administration fees,
website services fees, and retention of a portion of the sales charge on
Class A shares;
o soft dollar benefits which may enhance the ability of OMCAP or the
Sub-Advisors to obtain research and brokerage services through soft dollar
Trust trades which, in turn, may inure to the benefit of their other
clients;
o portfolio management statistics such as portfolio turnover and brokerage
commission expenses;
o OMCAP's role as investment advisor to the Trust, which may add to its
prestige and visibility in the investment community and make it more
attractive to potential clients;
o the economies of scale available to OMCAP and the Sub-Advisors and the
resulting economies of scale passed on to shareholders;
o the capabilities of OMCAP and the Sub-Advisors, including personnel
resources;
o the financial condition of OMCAP and the Sub-Advisors, including financial
statements and profitability analyses provided by each;
o fees charged by the Advisor to funds, other than those of the Trust, which
are managed by the Advisor;
o current economic and industry trends; and
o the overall balance of shareholder benefits versus OMCAP and Sub-Advisor
benefits.
Current management fees and effective management fees after expense limitations
were reviewed in the context of OMCAP's costs of providing services and its
profitability. In addition, the Board reviewed the Lipper Report(s), comparing a
Portfolio's expense ratio, advisory fee, and where applicable, performance with
comparable mutual funds. The Board noted that, in moving the Asset Allocation
Portfolios to a fund of funds structure from its current manager of managers
structure, a lower advisory fee was proposed. The Board reviewed the Lipper
Report(s) data comparing the new lower proposed advisory fees to other funds in
the expense group under a fund of funds structure. The Board noted that the
Portfolios were relatively new and that the Advisor had not yet realized a
profit in each case. Similarly, the Board reviewed the costs of each Sub-Advisor
in providing the services and the profitability to each sub-Advisor with respect
to each Portfolio.
170
Analytic Fund and Copper Rock Fund
July 31, 2007 Renewal. In connection with the renewal of the Existing Advisory
Agreement through July 31, 2007 with respect to the Analytic Fund and the Copper
Rock Fund, the Board considered the fact that the contractual management fees of
1.045% for the Analytic Fund were lower than 6 funds in the Portfolio's peer
group and higher than 1 fund in its group. The Board considered the fact that
total expenses of 1.51% of the Analytic Fund at net asset value (after waiver or
reimbursement) were the lowest of a peer group comprised of 8 funds. The Board
considered the fact that the total return performance for the Analytic Fund of
8.32% for the one-year period ended December 31, 2006 was better than 2 funds in
the peer group but below 5 funds in the peer group.
The Board considered the fact that the contractual management fees of 0.991% for
the Copper Rock Fund were lower than 5 funds in the Portfolio's peer group and
higher than 4 funds in its group. The Board considered the fact that the total
expenses of 1.549% of the Copper Rock Fund at net asset value (after waiver or
reimbursement) were lower than 6 funds in the Portfolio's peer group and higher
than 3 funds in the peer group. The Board considered the fact that the total
return performance for the Copper Rock Fund of 11.46% for the one-year period
ended December 31, 2006 was better than 7 funds in the peer group but below 2
funds in the peer group.
July 31, 2008 Renewal. In connection with the approval of the renewal of the
Existing Advisory Agreement, the Copper Rock Fund Sub-Advisory Agreement, and
the Analytic Fund Sub-Advisory Agreement to continue in effect with respect to
the Analytic Fund and the Copper Rock Fund through July 31, 2008, the Board
considered the fact that the total current operating expenses of the Analytic
Fund of 1.652%, excluding service fees and waivers and including dividend
expenses, ranked the Analytic Fund 3rd out of a peer group of 7 funds, or in the
33rd percentile. In comparison, the median expenses for the Analytic Fund's
Lipper peer group were 1.664%. The Board noted that OMCAP has determined not to
renew the expense limitation agreement for the Analytic Fund, which expires on
December 8, 2007, since the actual expenses of the Analytic Fund appear to be
competitive.
The Board considered the fact that the contractual advisor management fee for
the Analytic Fund was lower than 5 funds in the Portfolio's peer group and
higher than 1 fund in its peer group. The Board considered the fact that the
total return performance for the Analytic Fund of 10.98% for the one-year period
ended April 30, 2007 was better than 4 funds in the Portfolio's peer group but
below 2 funds in the peer group. The Board considered the fact that the total
returns performance for the Analytic Fund of 12.39% and 11.17% for the two-year
period ended April 30, 2007 and since-inception period, respectively, was better
than 4 funds in the peer group but below 1 fund in the peer group.
The Board considered the fact that the contractual advisor management fee for
the Copper Rock Fund was lower than 8 funds in the Portfolio's peer group and
higher than 5 funds in its peer group. The Board considered the fact that the
total expenses of 1.420% of the Copper Rock Fund at net asset value (after
waiver or reimbursement) were lower than 5 funds in the Portfolio's peer group
and higher than 8 funds in its peer group. The Board considered the fact that
the total return performance for the Copper Rock Fund of 2.62% for the one-year
period ended April 30, 2007 was better than 6 funds in the peer group but below
7 funds in the peer group. The Board considered the fact that the total return
performance for the Copper Rock Fund of 13.81% for the since inception period
was better than 8 funds in the peer group but below 5 funds in the peer group.
Asset Allocation Portfolios
Renewal of Existing Advisory Agreement and Asset Allocation Sub-Advisory
Agreements. In connection with the approval of the renewal of the Existing
Advisory Agreement and Asset Allocation Sub-Advisory Agreements through July 31,
2008, with respect to the Asset Allocation Portfolios and utilizing the current
manager of managers structure, the Board considered the fact the advisory fees
of 0.90% for the Balanced Portfolio, 0.85% for the Conservative Portfolio, 0.95%
for the Growth Portfolio, and 0.90% for the Moderate Growth Portfolio were
competitive based on industry standards, as indicated by the Lipper Report(s),
and given the asset allocation overlay and the complexity of the current manager
of managers structure. The Board considered the fact that each of the Asset
Allocation Portfolios ranked in the top half of its performance group in the
Lipper Report(s) for the one-year, two-year, and since-inception periods ended
April 30, 2007, and that certain of the Asset Allocation Portfolios were the
best performing funds for selected periods (all based on Class A shares).
The Board considered the fact that the total return performance for the
Conservative Portfolio of 8.61% for the one-year period ended April 30, 2007 was
better than 13 funds in the Portfolio's peer group but below 3 funds in the peer
group. The Board considered the fact that the total return performance of the
Conservative Portfolio of 8.13% for the two-year period ended April 30, 2007 was
better than 11 funds in its peer group but below 5 funds in the peer group, and
it considered the fact that the total return performance of the Conservative
Portfolio of 7.54% for the since-inception period ended April 30, 2007 was
better than 7 funds in its peer group but below 5 funds in the peer group.
The Board considered the fact that the total return performance for the Balanced
Portfolio of 10.94% for the one-year period ended April 30, 2007 was better than
5 funds in the peer group but below 2 funds in the peer group, and that the
Balanced Portfolio was the top performing fund in its performance group for the
two-year and since-inception periods with returns of 13.17% and 11.92%,
respectively.
The Board considered the fact that the Moderate Growth Portfolio was the top
performing fund in its performance group with returns of 12.21%, 16.18%, and
14.50% for the one-year, two-year, and since-inception periods, respectively.
171
CONSIDERATIONS OF THE BOARD IN APPROVING INVESTMENT
ADVISORY AGREEMENTS AND INVESTMENT SUB-ADVISORY
AGREEMENTS - concluded (UNAUDITED)
The Board considered the fact that the total return performance for the Growth
Portfolio of 13.61% for the one-year period ended April 30, 2007 was better than
11 funds in the peer group but below 2 funds in the peer group, and that the
Growth Portfolio was the top performing fund in its performance group for the
two-year and since-inception periods with returns of 19.82% and 17.86%,
respectively.
Approval of Amendment to Schedule A of Existing Advisory Agreement. In
connection with the approval of the amendment to Schedule A of the Existing
Advisory Agreement, to be effective on or around November 19, 2007 through July
31, 2008, to reflect reduced advisory fees for the Asset Allocation Portfolios
in conjunction with the Board's approval of the use of a fund of funds structure
for those Portfolios, the Board reviewed the Lipper Report(s) data comparing the
new lower proposed advisory fees, as well as the administrative fee and total
expenses, to other funds in the expense group under a fund of funds structure.
The Board considered the fact that the new advisory fee for each of the Asset
Allocation Portfolios (under the fund of funds structure) was priced
competitively compared to the median for its expense group. The Board also
considered the fact that total expenses after waivers for each Asset Allocation
Portfolio except the Asset Allocation Conservative Portfolio were better than or
at the median total expenses of the Portfolio's respective peer expense group.
The Board noted that the Asset Allocation Portfolio Sub-Advisors, other than
Ibbotson Associates Advisors, LLC, would not receive a sub-advisory fee out of
OMCAP's advisory fee, but would instead receive their fees pursuant to
sub-advisory agreements with the underlying funds.
The Board considered the fact that the advisory fee of 0.20% for the Asset
Allocation Conservative Portfolio, under the fund of funds structure, was lower
than 4 funds in the Portfolio's peer group and higher than 5 funds in its peer
group. The Board considered that the advisory fee of 0.20% for the Asset
Allocation Balanced Portfolio, under the fund of funds structure, was lower than
6 funds in the Portfolio's peer group and higher than 2 funds in its peer group.
The Board considered the fact that the advisory fee of 0.25% for the Asset
Allocation Moderate Growth Portfolio, under the fund of funds structure, was
lower than 4 funds in the Portfolio's peer group and higher than 3 funds in its
peer group. The Board considered that the advisory fee of 0.25% for the Asset
Allocation Growth Portfolio, under the fund of funds structure, was lower than 8
funds in the Portfolio's peer group and higher than 6 funds in its peer group.
The Board considered the fact that the total expenses of each Asset Allocation
Portfolio, other than the Asset Allocation Conservative Portfolio, were more
competitive than the 60th percentile, compared to each Portfolio's Lipper peer
group. The Board considered the fact that the total expenses (under the fund of
funds structure) of 1.25% of the Asset Allocation Conservative Portfolio at net
asset value (after waiver or reimbursement) were lower than 4 funds in the
Portfolio's peer group and higher than 12 funds in the peer group. However, the
Board considered the fact that the Conservative Portfolio's expenses were
generally in line with or better than other funds of comparable size. The Board
considered the fact that the total expenses of 1.301% of the Asset Allocation
Balanced Portfolio at net asset value (after waiver or reimbursement) were lower
than 6 funds in the Portfolio's peer group and higher than 2 funds in the peer
group. The Board considered the fact that the total expenses of 1.300% of the
Asset Allocation Moderate Growth Portfolio at net asset value (after waiver or
reimbursement) were lower than 4 funds in the Portfolio's peer group and higher
than 3 funds in the peer group. The Board considered the fact that the total
expenses of 1.350% of the Asset Allocation Growth Portfolio at net asset value
(after waiver or reimbursement) were lower than 8 funds in the Portfolio's peer
group and higher than 6 funds in the peer group.
New Funds
In connection with the approval of the New Advisory Agreement, the Rogge
Sub-Advisory Agreement, and the PIC Sub-Advisory Agreement, the Board considered
the Lipper Report(s), which included comparisons of contractual management fees
at common asset levels, effective management fees at median levels, and actual
total expenses. The Board noted that, comparing the Rogge and PIC Funds'
proposed total expenses to the Lipper Report(s), those Funds placed between the
60th and 65th percentile.
The Board relied upon the Advisor's representation, based upon the advice of
Lipper, that each peer group discussed above was a fair, reasonable, and
balanced presentation of a comparable peer group for each Portfolio.
Board Approvals
The Board reviewed additional information provided by the Advisor and the
Sub-Advisors. Following extended discussions concerning this information, the
Board determined that the Agreements were consistent with the best interests of
each Portfolio, as applicable, and shareholders. The Board, including all of the
trustees who are not "interested persons" of the Trust, voting separately at
meetings held in-person, unanimously approved the Agreements on the basis of the
foregoing review and discussions. The Board concluded, among other things:
o that the level of fees to be charged to the Portfolios is comparable to the
fees charged by the Advisor to the other similar funds it advises, as well
as to fees charged by other investment advisors and investment sub-advisors
to other funds with similar investment or allocation strategies, and is
therefore reasonable, considering the services provided by the Advisor and
the Sub-Advisors;
o that each Portfolio's performance, as applicable, was competitive with that
of its performance peer group;
172
o that each Sub-Advisor is under common control with the Advisor, which
allows for greater coordination and monitoring of the nature and quality of
sub-advisory services;
o that, with respect to the Asset Allocation Portfolios, the unique and
active asset allocation management structure supports the level of fees
currently being charged, and that the anticipated change to a fund of funds
structure supports the contemplated lowering of advisory fees associated
with those Portfolios;
o that the Advisor's willingness to voluntarily defer its fees and reimburse
expenses to reduce Portfolio expenses indicates a high level of commitment
on the part of the Advisor;
o that the profitability of each Portfolio to the Advisor and each
Sub-Advisor, when positive, was reasonable in light of all the
circumstances;
o that the Existing Advisory Agreement (with respect to the Asset Allocation
Portfolios) and the New Advisory Agreement contain breakpoints, which will
allow shareholders to realize economies of scale as the Portfolios' assets
increase;
o that, because of the Copper Rock Fund's capacity constraints and the
Analytic Fund's complexity and the level of oversight required with respect
thereto, it was premature to consider economies of scale as a factor in
approving the renewal of the Existing Advisory Agreement with respect to
such Funds;
o that certain economies of scale factor in approving the Agreements at the
present time, including the ability of the Asset Allocation Portfolio
Sub-Advisors to gain efficiencies under the contemplated fund of funds
structure by only having to manage one pool of assets and the increase in
assets of the underlying funds resulting from change to a fund of funds
structure;
o that the Advisor and Sub-Advisors are experienced and possess significant
experience in managing particular asset classes;
o that the Advisor and the Sub-Advisors have demonstrated their commitment to
provide sufficient staffing resources and capabilities to manage the
Portfolios, including the retention of personnel with relevant investment
management experience;
o that the Advisor and Sub-Advisors appear to have overall high quality in
terms of their personnel, operations, financial condition, investment
management capabilities, methodologies and performance;
o that the website and administrative fees are competitive; o that the sales
charge for Class A shares, of which the Advisor's affiliated
broker-dealer retained only a portion, was competitive; o that the receipt
of research and brokerage services through soft dollar
Trust trades would strengthen the investment management resources of the
Advisor, which might ultimately benefit the Portfolios, as well as other
funds within the Trust and in the Old Mutual complex.
173
OLD MUTUAL ADVISOR FUNDS
For More Information about the Old Mutual Advisor Funds, contact us:
By Telephone
888-772-2888
By Mail
Old Mutual Advisor Funds
P.O. Box 219398 Kansas City, MO 64121-7250
In Person
Old Mutual Advisor Funds
4643 South Ulster Street, Suite 600
Denver, CO 80237
On the Internet
oldmutualfunds.com
This annual report is intended for the information of Old Mutual Advisor Funds
shareholders, but may be used by prospective investors when preceded or
accompanied by a current prospectus. You may obtain a copy of the prospectus,
which contains important information about the objectives, risks, share classes,
charges and expenses of each Old Mutual Advisor Fund, by visiting
oldmutualfunds.com or by calling 888-772-2888. Please read the prospectus
carefully before investing.
Old Mutual Investment Partners, NASD Member Firm, distributor.
R-07-144 09/2007
Item 2. Code of Ethics.
(a) As of the end of the period covered by this report, Old Mutual Advisor
Funds (the "registrant") has adopted a code of ethics that applies to the
registrant's principal executive officer ("PEO") and principal financial
officer ("PFO").
(c) During the period covered by this report, no amendments have been made to
a provision of the registrant's code of ethics that applies to the
registrant's PEO or PFO, and that relates to any element of the "code of
ethics" definition enumerated in paragraph (b) of Item 2 of Form N-CSR.
(d) During the period covered by this report, the registrant has not granted a
waiver, including an implicit waiver, from a provision of the registrant's
code of ethics to the registrant's PEO or PFO that relates to one or more
of the items set forth in paragraph (b) of Item 2 of Form N-CSR.
(f)(1) A copy of the registrant's code of ethics is filed as an exhibit to this
report, pursuant to Item 12(a)(1) of Form N-CSR.
Item 3. Audit Committee Financial Expert.
(a)(1) The board of trustees of the registrant (the "board") has determined that
the registrant has an "audit committee financial expert" serving on its
audit committee, as that term is defined in paragraph (b) of Item 3 of
Form N-CSR.
(a)(2) The name of the audit committee financial expert is John R. Bartholdson.
Mr. Bartholdson is an "independent" member of the audit committee as that
term is defined in paragraph (a)(2) of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) Audit Fees - The aggregate fees billed to the registrant by its principal
accountant for professional services rendered for the audit of the
registrant's annual financial statements or services that are normally
provided by the accountant in connection with statutory and regulatory
filings or engagements for the fiscal years ending July 31, 2007 and 2006
were $370,000 and $365,000, respectively.
(b) Audit-Related Fees - The aggregate fees billed to the registrant by its
principal accountant for assurance and related services that are
reasonably related to the performance of the audit of the registrant's
financial statements and that are not reported under paragraph (a) of this
Item 4 for the fiscal years ending July 31, 2007 and 2006 were $0 and $0,
respectively.
The aggregate fees billed for assurance and related services by the
registrant's principal accountant to the registrant's investment adviser,
and any entity controlling, controlled by, or under common control with
the adviser that provides ongoing services to the registrant
(collectively, the "Service Providers") that were reasonably related to
the performance of the audit of the registrant's financial statements,
which required pre-approval by the board's audit committee, for the fiscal
years ending July 31, 2007 and 2006 were $58,000 and $0, respectively.
These fees were for the review of the registrant's registration statement
and semi-annual report to shareholders.
(c) Tax Fees - The aggregate fees billed to the registrant by its principal
accountant for professional services rendered by the accountant for tax
compliance, tax advice, and tax planning ("tax fees") for the fiscal years
ending July 31, 2007 and 2006 were $0 and $0, respectively.
The aggregate tax fees billed by the registrant's principal accountant to
the Service Providers, which required pre-approval by the board's audit
committee, for the fiscal years ending July 31, 2007 and 2006 were $0 and
$0, respectively.
(d) All Other Fees - The aggregate fees billed to the registrant by its
principal accountant for products and services provided by the accountant,
other than the services reported in paragraphs (a), (b), and (c) of this
Item 4 ("all other fees"), for the fiscal years ending July 31, 2007 and
2006 were $0 and $0, respectively.
The aggregate of all other fees billed by the registrant's principal
accountant to the Service Providers, which required pre-approval by the
board's audit committee, for the fiscal years ending July 31, 2007 and
2006 were $137,000 and $59,000, respectively. These fees were for the
review of the registration statements and semi-annual reports to
shareholders of other investment companies with the same investment
adviser as the registrant.
(e)(1) The board's audit committee shall consider for preapproval all
permissible non-audit services that are proposed to be provided to the
registrant by its independent auditors and shall have preapproved any such
permissible non-audit services before they are provided to the registrant.
Such preapproval may be granted by one or more members of the audit
committee, so long as any such member's decision to preapprove is
presented to the full audit committee, solely for information purposes, at
its next scheduled meeting.
(e)(2) None of the services described in paragraphs (b) through (d) of this Item
4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C)
of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) For the fiscal years ending July 31, 2007 and 2006, the aggregate
non-audit fees billed by the registrant's principal accountant to the
registrant and the Service Providers were $195,000 and $59,000,
respectively.
(h) The board's audit committee has considered whether the provision of
non-audit services by the registrant's principal accountant to the Service
Providers which were not pre-approved (not requiring pre-approval) is
compatible with maintaining the principal accountant's independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
SCHEDULE I - INVESTMENTS IN SECURITIES OF UNAFFILIATED ISSUERS is included
as part of the reports to shareholders filed under Item 1 of this report.
Item 7. Disclosure of Proxy Voting Policies and Procedures for
Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Company and
Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
No material changes have been made to the procedures by which shareholders
may recommend nominees to the board, where those changes were implemented after
the registrant last provided disclosure in response to the requirements of Item
7(d)(2)(ii)(G) of Schedule 14A or this Item 10.
Item 11. Controls and Procedures.
(a) Based on an evaluation of the Disclosure Controls and Procedures of the
registrant as of a date within 90 days of the filing date of this
report, the registrant's PEO and PFO, or persons performing similar
functions, have concluded that the Disclosure Controls and Procedures
are effectively designed to ensure that information required to be
disclosed in this report is recorded, processed, summarized, and
reported within required time periods, and accumulated and communicated
to the registrant's management, including the registrant's PEO and PFO,
or persons performing similar functions, as appropriate to allow timely
decisions regarding required disclosure.
(b) During the quarter ended July 31, 2007, there has been no change in the
registrant's internal control over financial reporting that has materially
affected, or that is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Items 12. Exhibits.
(a)(1) Attached hereto as Exhibit EX-99.CODE ETH.
(a)(2) Attached hereto as Exhibit EX-99.CERT.
(a)(3) Not applicable.
(b) Attached hereto as Exhibit EX-99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
OLD MUTUAL ADVISOR FUNDS
By: /s/ Julian F. Sluyters
-----------------------------------
Julian F. Sluyters, President
Date: September 21, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Julian F. Sluyters
-----------------------------------------------
Julian F. Sluyters, Principal Executive Officer
Date: September 21, 2007
By: /s/ Robert T. Kelly
--------------------------------------------
Robert T. Kelly, Principal Financial Officer
Date: September 21, 2007