-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JPPT00gIuLV8VBH0G7b2hfocO4tDKbRrRCuRNsouMCa6BIwCq1gnrLAlkTVzCaf/ +BWk4l7PSPx+XuvYetneNw== 0000950123-10-022344.txt : 20100309 0000950123-10-022344.hdr.sgml : 20100309 20100309090853 ACCESSION NUMBER: 0000950123-10-022344 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20091231 FILED AS OF DATE: 20100309 DATE AS OF CHANGE: 20100309 EFFECTIVENESS DATE: 20100309 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WT MUTUAL FUND CENTRAL INDEX KEY: 0000927413 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-08648 FILM NUMBER: 10665381 BUSINESS ADDRESS: STREET 1: 1100 NORTH MARKET STREET CITY: WILMINGTON STATE: DE ZIP: 19890 BUSINESS PHONE: 3026518280 MAIL ADDRESS: STREET 1: 1100 NORTH MARKET STREET CITY: WILMINGTON STATE: DE ZIP: 19890 FORMER COMPANY: FORMER CONFORMED NAME: KIEWIT MUTUAL FUND DATE OF NAME CHANGE: 19941026 FORMER COMPANY: FORMER CONFORMED NAME: KIEWIT INSTITUTIONAL FUND DATE OF NAME CHANGE: 19940725 0000927413 S000001303 WILMINGTON PRIME MONEY MARKET FUND C000003513 SERVICE WPRXX C000003514 INSTITUTIONAL WPSXX C000035552 CLASS W WPWXX 0000927413 S000001304 WILMINGTON MULTI-MANAGER INTERNATIONAL FUND C000003515 INSTITUTIONAL WMIIX C000010725 CLASS A WMMFX 0000927413 S000001308 WILMINGTON MULTI-MANAGER REAL ASSET FUND C000003521 INSTITUTIONAL WMRIX C000010727 CLASS A WMMRX 0000927413 S000001310 WILMINGTON MULTI-MANAGER LARGE-CAP FUND C000003523 INSTITUTIONAL WMLIX C000010729 CLASS A WMMLX 0000927413 S000001312 WILMINGTON SMALL-CAP STRATEGY FUND C000003525 INSTITUTIONAL WMSIX C000010731 CLASS A WMMSX 0000927413 S000001314 WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND C000003527 SERVICE WGSXX C000003528 INSTITUTIONAL WGOXX C000035553 CLASS W WGWXX 0000927413 S000001315 WILMINGTON TAX-EXEMPT MONEY MARKET FUND C000003529 CLASS W WTEXX C000003530 INSTITUTIONAL WTSXX 0000927413 S000001316 WILMINGTON SHORT/INTERMEDIATE-TERM BOND FUND C000003531 CLASS A WSIBX C000003532 INSTITUTIONAL WSIIX 0000927413 S000001317 WILMINGTON BROAD MARKET BOND FUND C000003533 INSTITUTIONAL WBRIX C000010732 CLASS A WBRBX 0000927413 S000001318 WILMINGTON MUNICIPAL BOND FUND C000003534 INSTITUTIONAL WTAIX C000010733 CLASS A WTABX 0000927413 S000003842 WILMINGTON AGGRESSIVE ASSET ALLOCATION FUND C000010719 INSTITUTIONAL WAAIX C000010720 CLASS A WAAAX 0000927413 S000003844 WILMINGTON CONSERVATIVE ASSET ALLOCATION FUND C000010723 INSTITUTIONAL WCAIX C000010724 CLASS A WCAAX N-CSRS 1 b56002wt_allfunds.txt WILMINGTON TRUST N-CSRS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-08648 --------- WT Mutual Fund ---------------------------------------------------------------- (Exact name of registrant as specified in charter) 1100 N. Market Street Wilmington, DE 19890 ---------------------------------------------------------------- (Address of principal executive offices) (Zip code) John J. Kelley 1100 N. Market Street Wilmington, DE 19890 ---------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 800-254-3948 ------------ Date of fiscal year end: June 30 ------- Date of reporting period: December 31, 2009 ----------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. The Report to Shareholders is attached herewith. MONEY MARKET FUNDS SEMI-ANNUAL REPORT | DECEMBER 31, 2009 PRIME MONEY MARKET U.S. GOVERNMENT MONEY MARKET TAX-EXEMPT MONEY MARKET (WILMINGTON FUNDS LOGO)
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- PRESIDENT'S MESSAGE ============================================================================================================================ DEAR SHAREHOLDER: As the six-month period ended December 31, 2009 began, investors showered a lot of love on the financial markets. During the third quarter of 2009, most markets produced sizeable rewards. The equity markets spawned double digit results as the bull market from the March 9, 2009 lows extended with historic fervor. With equities recovering, bonds would normally be considered something to avoid but this market bucked expectations as sizeable positive returns were available in the bond market as well. Even the U.S. Treasury market, the often-stodgy GRANDE DAME of the bond market, found enough affection to produce a total return for the three months ended September 30, 2009 that exceeded two percent (2.13%), as measured by the BofA Merrill Lynch U.S. Treasury Index. The Federal Reserve's "Zero Rate Policy" has assured investors that they will receive very little return for taking almost no risk. What the policy did not assure was whether investors would receive any return for actually taking risk. However, the markets answered this with a resounding "yes" as risky assets gained favor and moved to the top of the quarterly leader board. Behind much of the momentum for the quarter ended September 30th were economic statistics that indicated that the economy was moving from its downward trajectory towards a more positive direction. The economic recovery began to take hold outside of the United States early in 2009. Economies in Asia, Germany, France, Brazil and India all found stability and began to turn the corner. For the most part, these countries were not victimized by the dramatic problems in credit which caused major dislocations in the banking system and forced deleveraging. In the United States, the areas where government assistance was most evident helped to lead the way. The most visible was the "Cash for Clunkers" program which lit a brief fire under auto sales. In early 2008, vehicle sales were averaging about 16 million units per year but began to collapse as the credit crisis took hold. The collapse of Lehman Brothers accelerated the decline so that by early 2009, annual sales were well below a rate of 10 million units per year. The "Cash for Clunkers" program provided car buyers with a government provided subsidy to replace older, gas guzzling vehicles with new, more fuel efficient models. Sales moved up to 11 million annual units before peaking in August at just over 14 million units annually. The program was fed in part from existing inventories but production needed to be ramped up to meet the demand. This helped to push manufacturing surveys such as the Chicago Purchasing Managers survey up to a peak reading of 50 during the quarter. The housing market showed signs of stabilizing for some time but perhaps the best news came from the Case-Shiller Housing Price data which showed prices beginning to move up. Again, government support has been important with an $8,000 tax credit for first time home buyers. Transaction volumes as measured by existing home sales bottomed early in 2009 at around 4.5 million homes but they have moved from these lows, fairly consistently pushing above 5 million units. Perhaps most importantly, the supply of homes on the market shrank to an 8.5 month supply by September 2009, down from a peak of above 11 months. This is a considerable improvement, even if it is well below the normal market average of between 4 to 5 months. New home sales dropped by 76% from their peak in July 2005 before bottoming at only 329 thousand new homes in early 2009. Like existing home sales, new home sales increased steadily throughout most of 2009. For the fixed income markets, the positive performance for the third quarter of calendar year 2009 began with improvements in the Treasury market. The yield curve experienced a modest bull flattening trend as Thirty-Year Treasury Notes lost 26 basis points of yield while the Two-Year Note shed 16 bps. The rationale for this market movement was not obvious relative to the fundamentals. With the economy demonstrating an improved tone, the bond market and the Treasury market in particular should expect to see yields move higher. Furthermore, with the large quantity of Treasury issuance taking place, the market 1
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ reactions seem even more out of synch with expectations. Several factors however came into play. First, inflation expectations are virtually nil and if anything, deflation concerns may be lingering for many investors. The multitude of government stimulus programs has many people expecting inflation to move higher but the extraordinary excess capacity is keeping this problem well bottled up. Second, while the economy perked up during the quarter ended September 30th, we do not expect the rate of growth to hold. While the economy is likely to gain ground in the future, it is likely to be well below trend. We believe this pushes any inflation concerns even further out into the future. Finally, the supply of new Treasuries hitting the market has found strong support from foreign buyers. From data collected by the Federal Reserve and reported by BCA Research, foreign buyers have accumulated 47% of the change in Treasury inventories from the middle of 2008 until the middle of 2009. In dollar terms, this amounts to about $900 billion. The Chinese, the biggest buyer of our Treasury debt, are caught between two relatively poor options. They can stand aside for these auctions and risk sparking a huge collapse of the dollar and a rise in rates which would cause their existing holdings to lose value while putting their export driven economy into a non-competitive position or they can pony up the vast new sums required to support the market. Ultimately, staying in power is their primary motivation so their political calculations favor keeping the Treasury market well supported. Outside of the Treasury market, the play for risky assets really took center stage. The corporate bond market, both investment grade and high-yield, followed up its strong performance for the quarter ended June 30th with an impressive encore. Yield spreads between corporate bonds and the Treasury market continued to narrow. Barclays Capital U.S. Investment Grade Corporate Index started the quarter with spreads at an average of 317 bps. By the end of September, this had narrowed by 93 basis points, which enabled this part of the market to post excess returns over similar duration Treasury securities of 556 basis points (5.56%). The big winner in the quarter ended September 30th was the financial sector which had lagged the tightening moves recorded earlier in the year. Investment grade financial institutions returned nearly 10% during the quarter according to Barclays Capital. Earnings for the quarter ended June 30th were generally better than expected in large part due to the profound cost cutting achieved by businesses in the wake of the Lehman Brothers collapse. This provided a strong foundation and helped to remove all concerns over systemic risk. The performance in the high-yield bond market was even more impressive. According to Barclay Capital U.S. Corporate High-Yield Index, the average spread tightened by about 220 basis points which allowed the market a total return of 12.3% for the quarter bringing year-to-date results up to a stunning 49.6%! Money flowed into these two markets at a very rapid clip helping to support significant new issuance. In the week following Labor Day, over $40 billion in new investment grade bonds were brought to market. The economic recovery picked-up its pace during the final quarter of 2009 and with it, the fixed-income markets began to confront the ugly truth that yield levels will likely move higher. Thus, a quarter that started with two reasonably positive months in October and November when 5-Year Treasury yields fell by 30 basis points (0.30%), experienced a broad-based increase in rates during December that reversed all of the gains and left longer term Treasury yields higher by roughly 35-60 basis points for the quarter. The quarter ended December 31st was again ruled by risk taking and the corporate bond market was right in the center of this action. Excess returns, as measured by the Barclay Capital U.S. Investment Grade Corporate Index, totaled 3.1% for the final quarter of 2009 and finished the year adding 22.7% above the Treasury market. During the early chapters of this credit rally, the financial services industry lagged behind but this shifted during the last half of 2009 as financials led the way. The financial services segment of the Barclays Capital U.S. Investment Grade Corporate Index returned 12.3% during the second half of 2009, 2
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ as compared to a little over 8% for both industrial and utility issuers. Even with this strong performance, spread levels remain elevated for the financial sector when compared to the other two major sectors. Additional spread tightening is likely as the markets continue to normalize but the momentum is likely to slow as it will take time for the remaining risks, many of which are centered in loan portfolios, to be fully addressed. The following is a comparison of the performance of the Wilmington Prime Money Market, Wilmington U.S. Government Money Market and Wilmington Tax-Exempt Money Market Funds versus their respective Lipper peer group average return for the six-month period ended December 31, 2009: WILMINGTON PRIME MONEY MARKET FUND -- INSTITUTIONAL SHARES ..................................... 0.01% WILMINGTON PRIME MONEY MARKET FUND -- SERVICE SHARES ........................................... 0.01% WILMINGTON PRIME MONEY MARKET FUND -- W SHARES ................................................. 0.01% Lipper Money Market Funds ...................................................................... 0.03% WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND -- INSTITUTIONAL SHARES ........................... 0.01% WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND -- SERVICE SHARES ................................. 0.01% WILMINGTON U.S. GOVERNMENT MONEY MARKET FUND -- W SHARES ....................................... 0.01% Lipper U.S. Government Money Market Funds ...................................................... 0.02% WILMINGTON TAX-EXEMPT MONEY MARKET FUND -- INSTITUTIONAL SHARES ................................ 0.01% WILMINGTON TAX-EXEMPT MONEY MARKET FUND -- W SHARES ............................................ 0.01% Lipper Tax-Exempt Money Market Funds ........................................................... 0.03% Source: Lipper - ----------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. THE FUNDS' SHARES ARE NOT BANK DEPOSITS AND ARE NOT INSURED BY, GUARANTEED BY, ENDORSED BY OR OBLIGATIONS OF THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD, ANY GOVERNMENT AGENCY OR ANY BANK. ALTHOUGH THE FUNDS SEEK TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUNDS. THE PERFORMANCE SHOWN IN THE TABLE DOES NOT REFLECT THE DEDUCTION OF TAXES THE SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR REDEMPTION OF FUND SHARES. RODNEY SQUARE MANAGEMENT CORPORATION, THE FUNDS' INVESTMENT ADVISER, IS CURRENTLY VOLUNTARILY REDUCING ITS ADVISORY FEE AND/OR REIMBURSING OPERATING EXPENSES OF EACH FUND IN ORDER TO MAINTAIN A FUND'S (OR CLASS THEREOF, AS APPLICABLE) CURRENT ANNUALIZED YIELD AT OR ABOVE 0.01%. 3
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ We invite your comments and questions and thank you for your investment in the Wilmington Money Market Funds. We look forward to reviewing our investment results with you in our next report to shareholders. Sincerely, /s/ John J. Kelley John J. Kelley President January 25, 2010 YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUNDS CAREFULLY BEFORE INVESTING. A PROSPECTUS WITH THIS AND OTHER INFORMATION MAY BE OBTAINED BY CALLING 800-336-9970 OR VISITING THE FUNDS' WEB SITE AT www.wilmingtonfunds.com. THE PROSPECTUS SHOULD BE READ BEFORE INVESTING. MR. KELLEY'S COMMENTS REFLECT THE INVESTMENT ADVISER'S VIEWS GENERALLY REGARDING THE MARKET AND THE ECONOMY AND ARE COMPILED FROM THE INVESTMENT ADVISER'S RESEARCH. THESE COMMENTS REFLECT OPINIONS AS OF THE DATE WRITTEN AND ARE SUBJECT TO CHANGE AT ANY TIME. DISTRIBUTED BY PROFESSIONAL FUNDS DISTRIBUTOR, LLC. SEE FINANCIAL HIGHLIGHTS. 4
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- EXPENSE DISCLOSURE (UNAUDITED) ============================================================================================================================ DISCLOSURE OF FUND EXPENSES The following Expense Tables are shown so that you can understand the impact of fees on your investment. All mutual funds have operating expenses. As a shareholder of a Fund, you incur ongoing costs, including management fees and other Fund expenses. A Fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The Expense Tables below illustrate your Fund's costs in two ways. - ACTUAL FUND RETURN AND EXPENSES. The first line of each table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during the period. - HYPOTHETICAL 5% RETURN AND EXPENSES. The second line of each table below provides information about hypothetical account values and hypothetical expenses based on the 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 the 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 tables 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, if any. Therefore, the second line of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The "Annualized Expense Ratio" reflects the actual expenses for the period indicated. 5
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- EXPENSE DISCLOSURE (UNAUDITED) -- CONTINUED ============================================================================================================================ FOR THE PERIOD JULY 1, 2009 TO DECEMBER 31, 2009 EXPENSE TABLES BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 7/1/09 12/31/09 RATIO PERIOD* --------- --------- ---------- -------- PRIME MONEY MARKET FUND - -- INSTITUTIONAL SHARES Actual Fund Return .......................................................... $1,000.00 $1,000.10 0.39% $1.97 Hypothetical 5% Return Before Expenses ...................................... 1,000.00 1,023.22 0.39 1.99 PRIME MONEY MARKET FUND - -- SERVICE SHARES Actual Fund Return .......................................................... $1,000.00 $1,000.10 0.39% $1.97 Hypothetical 5% Return Before Expenses ...................................... 1,000.00 1,023.22 0.39 1.99 PRIME MONEY MARKET FUND - -- W SHARES Actual Fund Return .......................................................... $1,000.00 $1,000.10 0.39% $1.97 Hypothetical 5% Return Before Expenses ...................................... 1,000.00 1,023.22 0.39 1.99 U.S. GOVERNMENT MONEY MARKET FUND - -- INSTITUTIONAL SHARES Actual Fund Return .......................................................... $1,000.00 $1,000.10 0.28% $1.46 Hypothetical 5% Return Before Expenses ...................................... 1,000.00 1,023.73 0.28 1.48 U.S. GOVERNMENT MONEY MARKET FUND - -- SERVICE SHARES Actual Fund Return .......................................................... $1,000.00 $1,000.10 0.28% $1.41 Hypothetical 5% Return Before Expenses ...................................... 1,000.00 1,023.78 0.28 1.43 U.S. GOVERNMENT MONEY MARKET FUND - -- W SHARES Actual Fund Return .......................................................... $1,000.00 $1,000.10 0.28% $1.41 Hypothetical 5% Return Before Expenses ...................................... 1,000.00 1,023.78 0.28 1.43 TAX-EXEMPT MONEY MARKET FUND - -- INSTITUTIONAL SHARES Actual Fund Return .......................................................... $1,000.00 $1,000.10 0.36% $1.87 Hypothetical 5% Return Before Expenses ...................................... 1,000.00 1,023.32 0.36 1.89 TAX-EXEMPT MONEY MARKET FUND - -- W SHARES Actual Fund Return .......................................................... $1,000.00 $1,000.10 0.36% $1.81 Hypothetical 5% Return Before Expenses ...................................... 1,000.00 1,023.37 0.36 1.84 - ---------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365. 6
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- DISCLOSURE OF PORTFOLIO HOLDINGS (UNAUDITED) ============================================================================================================================ PORTFOLIO HOLDINGS DECEMBER 31, 2009 The following tables present a summary of the portfolio holdings of each of the Wilmington Money Market Funds as a percent of its total investments. PRIME MONEY MARKET FUND TAX-EXEMPT MONEY MARKET FUND Municipal Commercial Paper ......................... 23.6% Municipal Bonds Municipal Bonds .................................... 21.8% Texas ............................................ 13.5% Commercial Paper ................................... 14.6% Tennessee ........................................ 9.1% Certificates of Deposit ............................ 14.2% Alaska ........................................... 7.2% U.S. Agency Obligations ............................ 11.3% Illinois ......................................... 6.6% Corporate Bonds .................................... 1.8% Wisconsin ........................................ 5.3% Money Market Mutual Funds .......................... 12.7% Minnesota ........................................ 4.3% ----- Connecticut ...................................... 4.2% 100.0% Oregon ........................................... 4.0% ===== Nevada ........................................... 3.6% Ohio ............................................. 3.4% U.S. GOVERNMENT MONEY MARKET FUND Florida .......................................... 3.3% U.S. Agency Obligations ............................ 58.4% Mississippi ...................................... 3.3% Repurchase Agreements .............................. 23.6% Indiana .......................................... 3.1% Money Market Mutual Funds .......................... 18.0% Michigan ......................................... 3.1% ----- Georgia .......................................... 3.0% 100.0% All Other ........................................ 17.0% ===== Money Market Mutual Funds .......................... 6.0% ----- 100.0% ===== DISCLOSURE OF PORTFOLIO HOLDINGS The Trust files a complete schedule of investments with the SEC for its first and third fiscal quarters on Form N-Q. Form N-Q is available without charge by visiting the SEC's website at http://www.sec.gov, or it may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the Public Reference Room). 7
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- PRIME MONEY MARKET FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS(1) AMOUNT (NOTE 2) ------------- ----------- -------------- CORPORATE BONDS -- 1.8% American Honda Finance Corp., 0.66%, 08/27/10** ...................................................... A1, A+ $45,000,000 $ 45,000,000 -------------- TOTAL CORPORATE BONDS (COST $45,000,000) ................................................................ 45,000,000 -------------- CERTIFICATES OF DEPOSIT -- 14.2% FOREIGN BANKS, U.S. BRANCHES -- 14.2% BNP Paribas Finance, 0.23%, 02/22/10 ...................................... P-1, A-1+ 50,000,000 50,000,000 Lloyds TSB Bank, PLC, NY, 0.25%, 01/22/10 ........................................................ P-1, A-1 51,187,000 51,187,596 National Australia Bank, DE, 0.20%, 04/05/10 ........................................................ P-1, A-1+ 50,000,000 50,000,000 Rabobank Nederland, NY, 0.32%, 03/10/10 ........................................................ P-1, A-1+ 50,000,000 50,000,000 Royal Bank of Scotland, PLC, NY, 0.26%, 02/05/10 ........................................................ P-1, A-1 50,000,000 50,000,000 Svenska Hanelsbanken, NY, 0.23%, 01/27/10 ........................................................ P-1, A-1+ 50,000,000 50,000,180 Toronto Dominion, NY, 0.27%, 06/17/10 ........................................................ P-1, A-1+ 50,000,000 50,000,000 -------------- TOTAL CERTIFICATES OF DEPOSIT (COST $351,187,776) ....................................................... 351,187,776 -------------- COMMERCIAL PAPER -- 14.6% CONSUMER PRODUCTS -- 4.3% Coca-Cola Co., 0.25%, 01/04/10* ........................................... P-1, A-1 50,000,000 49,998,958 Straight-A Funding LLC, 0.21%, 01/07/10* ....................................................... P-1, A-1+ 55,036,000 55,034,074 -------------- 105,033,032 -------------- FINANCE & INSURANCE -- 10.3% Societe Generale, 0.22%, 03/04/10* ........................................ P-1, A-1 50,000,000 49,981,055 BlackRock, Inc., 0.21%, 01/29/10* ......................................... P-1, A-1 24,180,000 24,176,051 BlackRock, Inc., 0.21%, 02/12/10* ......................................... P-1, A-1 25,000,000 24,993,875 Ranger Funding, 0.16%, 01/20/10* .......................................... P-1, A-1 30,238,000 30,235,447 Toyota Motor Credit Corp., 0.18%, 03/02/10* ....................................................... P-1, A-1+ 50,000,000 49,985,000 Toyota Motor Credit Corp., 0.23%, 04/07/10* ....................................................... P-1, A-1+ 25,000,000 24,984,667 General Electric Capital Corp., 0.25%, 05/27/10* ....................................................... P-1, A-1+ 50,000,000 49,949,305 -------------- 254,305,400 -------------- TOTAL COMMERCIAL PAPER (COST $359,338,432) .............................................................. 359,338,432 -------------- The accompanying notes are an integral part of the financial statements. 8
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- PRIME MONEY MARKET FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS(1) AMOUNT (NOTE 2) ------------- ----------- -------------- MUNICIPAL COMMERCIAL PAPER -- 23.5% Alaska Housing Finance Corp., 0.45%, 02/18/10* ....................................................... P-1, A-1+ $28,139,000 $ 28,122,117 Anchorage, AK, Ser. A, 0.65%, 01/08/10 ........................................................ A-1, A-1+ 40,000,000 40,000,000 Baltimore Cnty., MD PCRB, Ser. 2002, 0.32%, 06/15/10 ........................................................ P-1, A-1+ 25,900,000 25,900,000 Brown Univ., Ser. A, 0.22%, 03/12/10* ....................................................... P-1, A-1+ 20,100,000 20,091,402 Catholic Health Initiatives CO, Ser. A, 0.30%, 02/11/10 ........................................................ P-1, A-1+ 25,063,000 25,063,000 Catholic Health Initiatives CO, Ser. A, 0.35%, 03/10/10 ........................................................ P-1, A-1+ 36,300,000 36,300,000 Collier Cnty., FL Health Fac. Auth. Ser. 2003, 0.35%, 04/07/10 ........................................................ VMIG-1, A-1+ 30,525,000 30,525,000 Jacksonville Cnty., FL PCRB, 0.30%, 03/12/10 ........................................................ P-1, A-1 21,700,000 21,700,000 Jacksonville Cnty., FL PCRB, 0.35%, 02/12/10 ........................................................ VMIG-1, A-1+ 14,960,000 14,960,000 Las Vegas Valley, NV, Water District, Ser. 04-B, 0.32%, 02/09/10 ........................................................ P-1, A-1+ 25,000,000 25,000,000 Massachusetts Gen. Oblig. Ser. F, 0.26%, 01/07/10 ........................................................ P-1, A-1+ 25,000,000 25,000,000 Metro Govt. of Nashville & Davisville Cnty., TN, 0.40%, 01/12/10 ........................................................ P-1+, A-1+ 16,150,000 16,150,000 Ohio Higher Edu. Fac., 0.33%, 03/04/10 .................................... P-1, A-1+ 20,700,000 20,700,000 Rochester Health Care, Ser. 2001-B, MN, 0.27%, 01/22/10 ........................................................ NR, A-1+ 39,400,000 39,400,000 San Antonio, TX Water System, Ser. A, 0.30%, 04/09/10 ........................................................ P-1, A-1+ 12,900,000 12,900,000 South Carolina Public Service, 0.50%, 03/12/10* ........................... P-1, A-1 15,000,000 14,985,417 South Carolina Public Service, 0.35%, 04/09/10* ........................... P-1, A-1 22,500,000 22,478,562 South Carolina Public Service, 0.45%, 02/04/10* ........................... P-1, A-1 15,000,000 14,993,625 Sunshine St. Govt. Fin. FL, 0.35%, 01/05/10 ............................... P-1, A-1+ 50,000,000 50,000,000 Tennessee State School Board Authority, 0.28%, 04/06/10 ........................................................ P-1, A-1+ 12,575,000 12,575,000 Univ. of California, 0.19%, 02/11/10* ..................................... P-1, A-1+ 33,179,000 33,171,820 Univ. of Minnesota, Ser. 2007-C, 0.28%, 02/05/10 ........................................................ P-1, A-1+ 15,000,000 15,000,000 Univ. of Notre Dame, 0.25%, 01/06/10* ..................................... P-1, A-1 18,000,000 17,999,375 Wisconsin Transportation Rev., Ser 2006A, 0.35%, 01/15/10 ........................................................ P-1, A-1+ 16,474,000 16,474,000 -------------- TOTAL MUNICIPAL COMMERCIAL PAPER (COST $579,489,318) .................................................... 579,489,318 -------------- The accompanying notes are an integral part of the financial statements. 9
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- PRIME MONEY MARKET FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS(1) AMOUNT (NOTE 2) ------------- ----------- -------------- MUNICIPAL BONDS -- 21.8% Berkeley County, SC, VRDB, 0.23%, 01/04/10** ...................................................... VMIG-1, A-1+ $19,800,000 $ 19,800,000 Calhoun Cnty., TX Naval Industrial Dev. Auth., VRDB, 0.26%, 01/04/10** ................................................ VMIG-1, A-1+ 20,000,000 20,000,000 California Housing Finance Agency, 0.34%, 02/01/10** ...................................................... VMIG-1, NR 29,540,000 29,540,000 California Housing Finance Agency, 0.35%, 02/01/10** ...................................................... VMIG-1, NR 25,180,000 25,180,000 Connecticut St. Housing Fin. Auth., (Bank of America), 0.28%, 05/15/10** ................................... NR, A-1 80,000,000 80,000,000 Gulf Coast Waste Disposal Auth., VRDB, 0.23%, 01/04/10** ...................................................... VMIG-1, A-1+ 25,000,000 25,000,000 Las Vegas Valley, NV, Water District, 0.35%, 01/04/10** ...................................................... NR, A-1 49,215,000 49,215,000 Massachusetts State Dev. Fin. Agency, 0.25%, 01/07/10** ...................................................... VMIG-1, A-1+ 33,600,000 33,600,000 Massachusetts State Health & Educational Fac Auth. Rev., 0.29%, 01/07/10** .......................................... AAA, AAA 11,700,000 11,700,000 Michigan G.O. Ser. A, 2.00%, 09/30/10 ..................................... VMIG-1, SP-1+ 20,000,000 20,218,155 Michigan Muni. Bond Auth., 3.00%, 08/20/10 ................................ NR, SP-1+ 19,500,000 19,694,619 New Hampshire Health & Educ. Fac. Auth VRDB, 0.15%, 01/06/10** ................................................ VM1G-1, A-1+ 30,985,000 30,985,000 Washington State Health Care Fac. Auth., 0.26%, 01/07/10** ...................................................... AAA, A-1+ 67,800,000 67,800,000 West Side Calhoun Cnty., TX Naval District, 0.23%, 01/04/10** ...................................................... NR, A-1+ 25,000,000 25,000,000 Wisconsin Housing & Econ. Dev. Auth. Home Ownership Rev., 0.34%, 03/01/10** ...................................... NR, A-1 80,430,000 80,430,000 -------------- TOTAL MUNICIPAL BONDS (COST $538,162,774) ............................................................... 538,162,774 -------------- U.S. AGENCY OBLIGATIONS -- 11.3% FEDERAL HOME LOAN BANKS NOTES -- 9.9% Federal Home Loan Banks Notes, 0.59%, 01/04/10** ...................................................... 40,000,000 40,000,000 Federal Home Loan Banks Notes, 1.02%, 02/26/10 ........................................................ 50,000,000 49,993,541 Federal Home Loan Banks Notes, 0.90%, 04/07/10 ........................................................ 25,000,000 24,996,034 Federal Home Loan Banks Notes, 0.82%, 04/23/10 ........................................................ 13,000,000 13,000,400 Federal Home Loan Banks Notes, 0.55%, 06/03/10 ........................................................ 50,000,000 50,000,000 Federal Home Loan Banks Notes, 3.00%, 06/11/10 ........................................................ 40,000,000 40,483,509 Federal Home Loan Banks Notes, 0.50%, 01/05/11 ........................................................ 25,000,000 25,000,000 -------------- 243,473,484 -------------- The accompanying notes are an integral part of the financial statements. 10
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- PRIME MONEY MARKET FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE AMOUNT (NOTE 2) ----------- -------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES -- 1.4% Federal National Mortgage Association Notes, 3.25%, 02/10/10 ........................................................ $35,807,000 $ 35,891,739 -------------- TOTAL U.S. AGENCY OBLIGATIONS (COST $279,365,223) ....................................................... 279,365,223 -------------- SHARES ----------- MONEY MARKET MUTUAL FUNDS -- 12.7% AIM STIT - Liquid Assets Portfolio ........................................ 215,082,900 215,082,900 BlackRock Liquidity Funds TempFund Portfolio - Institutional Series ....................................... 43,344,677 43,344,677 Federated Prime Government Obligations Fund - Institutional Series ............................................ 54,963,141 54,963,141 -------------- TOTAL MONEY MARKET MUTUAL FUNDS (COST $313,390,718) ..................................................... 313,390,718 -------------- TOTAL INVESTMENTS -- 99.9% (COST $2,465,934,241)+ ........................................................ $2,465,934,241 OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.1% ............................................................ 1,237,627 -------------- NET ASSETS -- 100.0% ..................................................................................... $2,467,171,868 ============== - ---------- (1) Although certain securities are not rated (NR) by either Moody's or S&P, they have been determined to be of comparable quality to investment grade securities by the investment adviser. * Discounted commercial paper. The interest rate shown is the yield as of the time of purchase. ** Denotes a Variable or Floating Rate Note. Variable or Floating Rate Notes are instruments whose rates change periodically. The rates shown are the interest rates as of December 31, 2009. The dates shown are the next dates the interest rates on the instruments are scheduled to be reset. + Cost for federal income tax purposes. G.O. - General Obligation PCRB - Pollution Control Revenue Bonds PLC - Public Limited Company VRDB - Variable Rate Demand Bonds The accompanying notes are an integral part of the financial statements. 11
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- PRIME MONEY MARKET FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 LEVEL 3 TOTAL SIGNIFICANT SIGNIFICANT VALUE AT LEVEL 1 OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 QUOTED PRICES INPUTS INPUTS -------------------- ----------- -------------- ------------ INVESTMENTS IN SECURITIES: Corporate Debt ......................................... $ 755,526,208 $ -- $ 755,526,208 $ -- Municipal Securities ................................... 1,117,652,092 -- 1,117,652,092 -- U.S. Agency Obligations ................................ 279,365,223 -- 279,365,223 -- Money Market Mutual Funds .............................. 313,390,718 313,390,718 -- -- -------------- ------------ -------------- ---- Total ............................................... $2,465,934,241 $313,390,718 $2,152,543,523 $ -- ============== ============ ============== ==== The accompanying notes are an integral part of the financial statements. 12
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- U.S. GOVERNMENT MONEY MARKET FUND - --------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ PRINCIPAL VALUE AMOUNT (NOTE 2) ------------ -------------- U.S. AGENCY OBLIGATIONS -- 58.4% FEDERAL HOME LOAN BANKS DISCOUNT NOTES(1) -- 3.7% Federal Home Loan Banks Discount Notes, 0.50%, 02/01/10 ................................ $ 25,000,000 $ 24,989,236 Federal Home Loan Banks Discount Notes, 0.11%, 03/17/10 ................................ 50,000,000 49,988,542 -------------- 74,977,778 -------------- FEDERAL HOME LOAN BANKS NOTES -- 6.9% Federal Home Loan Banks Notes, 0.59%, 01/04/10* ........................................ 30,000,000 30,000,000 Federal Home Loan Banks Notes, 1.02%, 02/26/10 ......................................... 25,000,000 24,996,770 Federal Home Loan Banks Notes, 0.90%, 04/07/10 ......................................... 25,000,000 24,996,055 Federal Home Loan Banks Notes, 0.82%, 04/23/10 ......................................... 12,600,000 12,600,388 Federal Home Loan Banks Notes, 0.48%, 05/11/10 ......................................... 25,080,000 25,097,227 Federal Home Loan Banks Notes, 0.50%, 01/05/11 ......................................... 25,000,000 25,000,000 -------------- 142,690,440 -------------- FEDERAL HOME LOAN MORTGAGE CORPORATION DISCOUNT NOTES(1) -- 18.8% Federal Home Loan Mortgage Corporation Discount Notes, 0.15%, 01/06/10 ...................................................................... 21,575,000 21,574,550 Federal Home Loan Mortgage Corporation Discount Notes, 0.09%, 02/08/10 ...................................................................... 25,000,000 24,997,625 Federal Home Loan Mortgage Corporation Discount Notes, 0.28%, 02/08/10 ...................................................................... 50,000,000 49,985,222 Federal Home Loan Mortgage Corporation Discount Notes, 0.26%, 02/16/10 ...................................................................... 25,000,000 24,991,694 Federal Home Loan Mortgage Corporation Discount Notes, 0.25%, 03/15/10 ...................................................................... 25,000,000 24,987,326 Federal Home Loan Mortgage Corporation Discount Notes, 0.24%, 03/31/10 ...................................................................... 50,000,000 49,970,951 Federal Home Loan Mortgage Corporation Discount Notes, 0.28%, 04/15/10 ...................................................................... 27,150,000 27,128,039 Federal Home Loan Mortgage Corporation Discount Notes, 0.21%, 04/19/10 ...................................................................... 50,000,000 49,968,500 Federal Home Loan Mortgage Corporation Discount Notes, 0.18%, 04/21/10 ...................................................................... 25,000,000 24,986,250 Federal Home Loan Mortgage Corporation Discount Notes, 0.15%, 05/04/10 ...................................................................... 5,700,000 5,697,079 Federal Home Loan Mortgage Corporation Discount Notes, 0.15%, 05/10/10 ...................................................................... 7,063,000 7,059,204 Federal Home Loan Mortgage Corporation Discount Notes, 0.15%, 05/17/10 ...................................................................... 50,000,000 49,971,667 Federal Home Loan Mortgage Corporation Discount Notes, 0.19%, 06/07/10 ...................................................................... 25,000,000 24,979,285 -------------- 386,297,392 -------------- The accompanying notes are an integral part of the financial statements. 13
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- U.S. GOVERNMENT MONEY MARKET FUND - --------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE AMOUNT (NOTE 2) ------------ -------------- FEDERAL HOME LOAN MORTGAGE CORPORATION NOTES -- 3.9% Federal Home Loan Mortgage Corporation Notes, 0.56%, 01/08/10* ......................... $ 65,000,000 $ 65,000,000 Federal Home Loan Mortgage Corporation Notes, 7.00%, 03/15/10 .......................... 14,317,000 14,512,720 -------------- 79,512,720 -------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION DISCOUNT NOTES(1) -- 22.1% Federal National Mortgage Association Discount Notes, 0.26%, 01/04/10 ...................................................................... 37,000,000 36,999,198 Federal National Mortgage Association Discount Notes, 0.25%, 01/11/10 ...................................................................... 50,000,000 49,996,528 Federal National Mortgage Association Discount Notes, 0.09%, 02/10/10 ...................................................................... 59,124,000 59,118,088 Federal National Mortgage Association Discount Notes, 0.10%, 03/10/10 ...................................................................... 50,000,000 49,990,556 Federal National Mortgage Association Discount Notes, 0.21%, 03/24/10 ...................................................................... 50,000,000 49,976,083 Federal National Mortgage Association Discount Notes, 0.17%, 03/31/10 ...................................................................... 25,000,000 24,989,802 Federal National Mortgage Association Discount Notes, 0.28%, 04/06/10 ...................................................................... 25,650,000 25,631,047 Federal National Mortgage Association Discount Notes, 0.17%, 04/09/10 ...................................................................... 16,000,000 15,992,596 Federal National Mortgage Association Discount Notes, 0.16%, 05/19/10 ...................................................................... 67,316,000 67,276,003 Federal National Mortgage Association Discount Notes, 0.18%, 05/25/10 ...................................................................... 25,000,000 24,982,000 Federal National Mortgage Association Discount Notes, 0.21%, 06/23/10 ...................................................................... 25,000,000 24,974,771 Federal National Mortgage Association Discount Notes, 0.25%, 08/16/10 ...................................................................... 25,000,000 24,960,590 -------------- 454,887,262 -------------- FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES -- 3.0% Federal National Mortgage Association Notes, 3.25%, 02/10/10 ........................... 26,000,000 26,061,879 Federal National Mortgage Association Notes, 2.50%, 04/09/10 ........................... 9,125,000 9,178,985 Federal National Mortgage Association Notes, 4.63%, 06/01/10 ........................... 25,000,000 25,452,825 -------------- 60,693,689 -------------- TOTAL U.S. AGENCY OBLIGATIONS (COST $1,199,059,281) ................................................... 1,199,059,281 -------------- The accompanying notes are an integral part of the financial statements. 14
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- U.S. GOVERNMENT MONEY MARKET FUND - --------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE AMOUNT (NOTE 2) ------------ -------------- REPURCHASE AGREEMENTS -- 23.6% With Bank of America: at 0.01%, dated 12/31/09, to be repurchased on 01/04/10, repurchase price $235,000,261 (collateralized by Government National Mortgage Association Notes, ranging in par value $1,432,595-$84,729,032, coupon rate ranging 4.50%-6.00%, 03/15/39-09/15/39 with a total market value $242,050,001) ........................................................... $235,000,000 $ 235,000,000 With Credit Suisse First Boston: at 0.005%, dated 12/31/09, to be repurchased on 01/04/10, repurchase price $250,000,035 (collateralized by Government National Mortgage Association Notes, ranging in par value $3,620,000-$262,590,000, coupon rate 0.000%-3.830%, 04/15/11-11/18/39 with a total market value $255,003,161) .................................................................. 250,000,000 250,000,000 -------------- TOTAL REPURCHASE AGREEMENTS (COST $485,000,000) ........................................ 485,000,000 -------------- SHARES ------------ MONEY MARKET MUTUAL FUNDS -- 18.0% AIM STIT - Government & Agency Portfolio ............................................... 160,517,777 160,517,777 BlackRock Liquidity Funds FedFund Portfolio - Institutional Series ..................... 119,997,525 119,997,525 Federated Government Obligations Fund - Institutional Series ........................... 90,000,000 90,000,000 -------------- TOTAL MONEY MARKET MUTUAL FUNDS (COST $370,515,302) ................................................... 370,515,302 -------------- TOTAL INVESTMENTS -- 100.0% (COST $2,054,574,583)+ ....................................................... $2,054,574,583 OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.0% ............................................................ 820,564 -------------- NET ASSETS -- 100.0% ..................................................................................... $2,055,395,147 ============== - ---------- (1) The interest rate shown is the effective yield as of the date of purchase. * Denotes a Variable or Floating Rate Note. Variable or Floating Rate Notes are instruments whose rates change periodically. The rates shown are the interest rates as of December 31, 2009. The dates shown are the next dates the interest rates on the instruments are scheduled to be reset. + Cost for federal income tax purposes. The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 LEVEL 3 TOTAL SIGNIFICANT SIGNIFICANT VALUE AT LEVEL 1 OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 QUOTED PRICES INPUTS INPUTS ----------------- ------------- -------------- ------------ INVESTMENTS IN SECURITIES: U.S. Agency Obligations ............................ $1,199,059,281 $ -- $1,199,059,281 $ -- Repurchase Agreements .............................. 485,000,000 -- 485,000,000 -- Money Market Mutual Funds .......................... 370,515,302 370,515,302 -- -- -------------- ------------ -------------- ---- Total ........................................... $2,054,574,583 $370,515,302 $1,684,059,281 $ -- ============== ============ ============== ==== The accompanying notes are an integral part of the financial statements. 15
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TAX-EXEMPT MONEY MARKET FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS(1) AMOUNT (NOTE 2) ------------- ----------- -------------- MUNICIPAL BONDS -- 94.0% ALASKA -- 7.2% Valdez, AK Marine Terminal VRDB Rev. Ref. Bonds (BP Pipelines, Inc. Proj.) Ser. 2003A, 0.18%, 01/04/10* ........................................................ VMIG-1, A-1+ $ 5,100,000 $ 5,100,000 Valdez, AK Marine Terminal VRDB Rev. Ref. Bonds (BP Pipelines, Inc., Proj.), Ser. 2001, 0.18%, 01/01/10* ........................................................ VMIG-1, A-1+ 5,000,000 5,000,000 Valdez, AK Marine Terminal VRDB Rev. Ref. Bonds 1993 (Exxon Pipeline Co. Proj.) Ser. C, 0.18%, 01/04/10* ................................................ VMIG-1, A-1+ 17,000,000 17,000,000 -------------- 27,100,000 -------------- ARIZONA -- 2.2% Salt River Proj. AZ, Agric. Impt. & Pwr. Dist TECP, 0.33%, 04/09/10 ................................................... VMIG-1, A-1+ 8,400,000 8,400,000 -------------- CONNECTICUT -- 4.2% Connecticut St. Health & Educ. Auth. TECP (Yale University), 0.40%, 01/13/10 ...................................... VMIG-1, A-1+ 15,900,000 15,900,000 -------------- DELAWARE -- 2.7% Delaware Econ. Dev. Auth. VRDB (St. Andrews School Proj.), Ser. 2003, 0.25%, 01/07/10* .............................. VMIG-1, A-1+ 10,100,000 10,100,000 -------------- FLORIDA -- 3.3% City of Jacksonville, FL (Florida Pwr. & Lt.) TECP, 0.30%, 03/08/10 ................................................... P-1, A-1 5,600,000 5,600,000 Orange County, FL Ind. Dev. Auth. Rev. Bonds VRDB, LOC Bank of America, 0.25%, 01/07/10* ........................................................ NR, NR 2,435,000 2,435,000 Orange County, FL Housing Fin. Auth. Multi-Family Housing VDRB Ref. Rev. Bonds (Post Fountains at Lee Vista Proj)., FNMA Gtd., Ser. 1997E, 0.25%, 01/07/10* ................................. NR, A-1+ 4,235,000 4,235,000 -------------- 12,270,000 -------------- GEORGIA -- 3.0% Metro Atlanta Rapid Trans. Auth. TECP, LOC Dexia, 0.35%, 01/07/10 .................................................. P-1, A-1+ 11,500,000 11,500,000 -------------- ILLINOIS -- 6.6% Illinois Dev. Fin. Auth. Rev. VRDB (Goodman Theatre Proj.), LOC Banc One N.A./Northern Trust, Ser. 1999, 0.27%, 01/06/10* ...................................... NR, A-1+ 13,400,000 13,400,000 Illinois Dev. Fin. Auth. Rev. VRDB (Radiological Society Proj.), LOC JPMorgan Chase, Ser.1997, 0.27%, 01/07/10* .............................................. NR, A-1+ 1,370,000 1,370,000 Illinois Educ. Fac. Auth. Rev. TECP, 0.28%, 04/05/10 ......................................................... NR, A-1+ 3,820,000 3,820,000 The accompanying notes are an integral part of the financial statements. 16
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TAX-EXEMPT MONEY MARKET FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS(1) AMOUNT (NOTE 2) ------------- ----------- -------------- ILLINOIS -- (CONTINUED) Illinois Educ. Fac. Auth. Rev. VRDB (ACI/Cultural Pooled Financing Proj.), LOC Bank of America, Ser. 1998, 0.28%, 01/07/10* ........................................................ NR, A-1+ $ 6,325,000 $ 6,325,000 -------------- 24,915,000 -------------- INDIANA -- 3.1% Marion, IN Econ. VRDB (Wesleyan Univ.), LOC Bank of America, Ser. 2006, 0.25%, 01/07/10* ........................................................ VMIG-1, NR 1,450,000 1,450,000 Mt. Vernon, IN PCRB VRDB (General Electric Co. Proj.), Ser. 2004, 0.22%, 01/04/10* ................................. P-1, AAA 10,200,000 10,200,000 -------------- 11,650,000 -------------- KANSAS -- 1.3% Wamego, KS PCRB VRDB (Utilicorp United, Inc. Proj.), LOC Bank of America, Ser. 1996, 0.27%, 01/07/10* ............................................. P-1, A-1 5,000,000 5,000,000 -------------- MARYLAND -- 2.7% Maryland Health & Higher Educ. Fac. (Johns Hopkins Univ. Proj.) TECP, 0.30%, 06/15/10 ......................................................... P-1, A-1+ 10,000,000 10,000,000 -------------- MICHIGAN -- 3.1% Michigan St., G.O. Notes Ser. A, 2.00%, 09/30/10* ........................................................ VMIG-I, SP-1+ 8,000,000 8,087,262 Univ. of Michigan VRDB (Hospital Rev. Bonds), Ser. 2007A, 0.20%, 01/04/10* ............................................ VMIG-1, A-1+ 3,500,000 3,500,000 -------------- 11,587,262 -------------- MINNESOTA -- 4.3% Rochester, MN Health Fac. Auth. Ser. 2001-D TECP, 0.27%, 01/22/10 ................................................... AA2, A-1+ 9,500,000 9,500,000 Univ. of Minnesota Board of Regents Ser. A TECP, 0.28%, 02/05/10 ................................................... P-1, A-1+ 6,750,000 6,750,000 -------------- 16,250,000 -------------- MISSISSIPPI -- 3.3% Mississippi Business Finance Corp. Gulf Opp. Zone VRDB (Chevron USA, Inc.), 0.18%, 01/04/10* ........................................................ VMIG-1, A-1+ 5,000,000 5,000,000 Mississippi Business Finance Corp. Gulf Opp. Zone VRDB (Chevron USA, Inc.) Ser. E, 0.18%, 01/04/10* ........................................................ VMIG-1, A-1+ 7,580,000 7,580,000 -------------- 12,580,000 -------------- The accompanying notes are an integral part of the financial statements. 17
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TAX-EXEMPT MONEY MARKET FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS(1) AMOUNT (NOTE 2) ------------- ----------- -------------- NEVADA -- 3.6% Las Vegas Valley, NV Water District G.O. Ser. A TECP, 0.32%, 02/24/10 ............................................ P-1, A-1+ $13,500,000 $ 13,500,000 -------------- NEW HAMPSHIRE -- 1.5% New Hampshire Health & Educ. Fac. VRDB Rev. Bonds (Dartmouth College Issue) Ser. 2007A, 0.22%, 01/04/10* ............................................ VMIG-1, A-1+ 5,630,000 5,630,000 -------------- NEW YORK -- 2.7% New York City Muni. Water Fin. Auth. Ser. 1994-1 TECP, 0.25%, 01/21/10 ....................................... P-1, A-1+ 10,000,000 10,000,000 -------------- OHIO -- 3.4% Ohio Higher Educ. Fac. Auth. Rev. Ser. 2008 TECP (Cleveland Clinic), 0.47%, 01/27/10 ................................ P-1, A-1+ 13,000,000 13,000,000 -------------- OREGON -- 4.0% State of Oregon Tax Antic. Notes TECP, 2.50%, 06/30/10 ......................................................... VMIG-1, SP-1+ 9,500,000 9,594,535 State of Oregon VRDB (Veterans Welfare Proj.), Ser. 88-B, 0.20%, 01/04/10* ............................................. VMIG-1, A-1+ 5,500,000 5,500,000 -------------- 15,094,535 -------------- PENNSYLVANIA -- 1.1% Beaver County, PA Ind. Dev. Auth. PCRB VRDB (Atlantic Richfield Co. Proj.), Ser. 1995, 0.29%, 01/07/10* ............................................. VMIG-1, A-1+ 4,200,000 4,200,000 -------------- TENNESSEE -- 9.1% Clarksville, TN Pub. Bldg. Auth. Rev. VRDB (Tennessee Municipal Bond Fund Proj.), LOC Bank of America, Ser. 1984, 0.25%, 01/07/10* ........................................................ NR, A-1+ 1,045,000 1,045,000 Clarksville, TN Pub. Bldg. Auth. Rev. VRDB (Tennessee Municipal Bond Fund Proj.), LOC Bank of America, Ser. 1995, 0.25%, 01/07/10* ........................................................ NR, A-1+ 400,000 400,000 Metro Govt. Nashville & Davidson Cnty., TN Ind. Dev. (Vanderbilt Univ.) TECP, 0.25%, 03/03/10 ......................................................... P-1, A-1+ 7,285,000 7,285,000 Metro Govt. Nashville & Davidson Cnty., TN Ind. Dev. G.O. TECP, 0.30%, 02/08/10 ......................................................... P-1, A-1+ 10,000,000 10,000,000 Metro Govt. Nashville & Davidson Cnty., TN Ind. Dev. G.O. TECP, 0.33%, 03/04/10 ......................................................... P-1, A-1+ 5,000,000 5,000,000 Tenn. St. G.O. Ser. A TECP, 0.27%, 01/14/10 ......................................................... P-1, A-1+ 10,800,000 10,800,000 -------------- 34,530,000 -------------- The accompanying notes are an integral part of the financial statements. 18
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TAX-EXEMPT MONEY MARKET FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS(1) AMOUNT (NOTE 2) ------------- ----------- -------------- TEXAS -- 13.5% Board of Regents of Univ. of Texas A&M Univ. Sys. TECP, 0.30%, 01/13/10 .............................................. P-1, A-1+ $ 5,400,000 $ 5,400,000 City of Houston, TX G.O. Ser. H-2 TECP, 0.27%, 03/09/10 ......................................................... P-1, A-1+ 8,800,000 8,800,000 Harris County, TX G.O. TECP, 0.30%, 04/09/10 ......................................................... P-1, A-1+ 11,248,000 11,248,000 San Antonio, TX Water. Sys. Ser. A TECP, 0.25%, 02/05/10 ......................................................... P-1, A-1+ 7,500,000 7,500,000 Texas St. Pub. Fin. Auth. Ser. A TECP, 0.35%, 04/07/10 ......................................................... P-1, A-1+ 7,700,000 7,700,000 Texas St. Pub. Fin. Auth. Ser. A TECP, 0.30%, 04/09/10 ......................................................... P-1, A-1+ 4,300,000 4,300,000 Texas Tech Univ. Rev. Ser. A TECP, 0.27%, 04/05/10 ......................................................... P-1, A-1+ 3,532,000 3,532,000 Texas Tech Univ. Rev. Ser. A TECP, 0.30%, 04/08/10 ......................................................... P-1, A-1+ 2,500,000 2,500,000 -------------- 50,980,000 -------------- VIRGINIA -- 1.8% Peninsula Ports Auth. VRDB (Dominion Term. Proj.) Ser.D, 0.20%, 01/04/10* .......................................... P-1, NR 6,600,000 6,600,000 -------------- WASHINGTON -- 1.0% Washington Health Care Fac. Auth. Lease Rev. VRDB (National Healthcare Research & Educ. Proj.), LOC BNP Paribas, 0.22%, 01/07/10* ........................................................ VMIG-1, NR 3,800,000 3,800,000 -------------- WISCONSIN -- 5.3% State of Wisconsin G.O. Ser. 2005A TECP, 0.33%, 02/11/10 ......................................................... P-1, A-1+ 9,101,000 9,101,000 Wisconsin Trans. Rev. Ser. 06-A TECP, 0.30%, 02/09/10 ......................................................... P-1, A-1+ 11,055,000 11,055,000 -------------- 20,156,000 -------------- TOTAL MUNICIPAL BONDS (COST $354,742,797) ............................................................... 354,742,797 -------------- The accompanying notes are an integral part of the financial statements. 19
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TAX-EXEMPT MONEY MARKET FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE SHARES (NOTE 2) ----------- -------------- MONEY MARKET MUTUAL FUNDS -- 6.0% BlackRock Liquidity Funds MuniCash Portfolio - Institutional Series......................................................... 11,363,052 $ 11,363,052 BlackRock Liquidity Funds MuniFund Portfolio - Institutional Series......................................................... 11,363,055 11,363,055 -------------- TOTAL MONEY MARKET MUTUAL FUNDS (COST $22,726,107)....................................................... 22,726,107 -------------- TOTAL INVESTMENTS -- 100.0% (COST $377,468,904)+.......................................................... $ 377,468,904 OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.0%............................................................. 109,408 -------------- NET ASSETS -- 100.0%...................................................................................... $ 377,578,312 ============== - ---------- (1) Although certain securities are not rated (NR) by either Moody's or S&P, they have been determined to be of comparable quality to investment grade securities by the investment adviser. * Denotes a Variable or Floating Rate Note. Variable or Floating Rate Notes are instruments whose rates change periodically. The rates shown are the interest rates as of December 31, 2009. The dates shown are the next dates the interest rates on the instruments are scheduled to be reset. + Cost for Federal income tax purposes. G.O. - General Obligation LOC - Letter of Credit MBIA - Credit rating enhanced by guaranty or insurance from MBIA Inc. PCRB - Pollution Control Revenue Bonds TECP - Tax-Exempt Commercial Paper and multi-modal bonds in commercial paper mode VRDB - Variable Rate Demand Bonds The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 LEVEL 3 TOTAL SIGNIFICANT SIGNIFICANT VALUE AT LEVEL 1 OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 QUOTED PRICES INPUTS INPUTS ----------------- ------------- ------------ ------------ INVESTMENTS IN SECURITIES: Municipal Securities ................................. $354,742,797 $ -- $354,742,797 $ -- Money Market Mutual Funds ............................ 22,726,107 22,726,107 -- -- ------------ ----------- ------------ ---- Total ............................................ $377,468,904 $22,726,107 $354,742,797 $ -- ============ =========== ============ ==== The accompanying notes are an integral part of the financial statements. 20
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL STATEMENTS ============================================================================================================================ STATEMENTS OF ASSETS AND LIABILITIES December 31, 2009 (Unaudited) PRIME MONEY MARKET U.S. GOVERNMENT TAX-EXEMPT FUND MONEY MARKET FUND MONEY MARKET FUND -------------- ----------------- ----------------- ASSETS: Investment in securities, at fair value* (including Repurchase Agreements of $0, $485,000,000 and $0, respectively) ................................................... $2,465,934,241 $2,054,574,583 $377,468,904 Interest and dividends receivable ................................. 3,214,058 2,640,280 479,743 Other assets ...................................................... 68,242 46,604 27,001 -------------- -------------- ------------ Total assets ...................................................... 2,469,216,541 2,057,261,467 377,975,648 -------------- -------------- ------------ LIABILITIES: Dividend payable .................................................. 21,193 19,383 3,169 Accrued advisory fee .............................................. 1,266,024 1,264,984 235,007 Other accrued expenses ............................................ 757,456 581,953 159,160 -------------- -------------- ------------ Total liabilities ................................................. 2,044,673 1,866,320 397,336 -------------- -------------- ------------ NET ASSETS ........................................................ $2,467,171,868 $2,055,395,147 $377,578,312 ============== ============== ============ NET ASSETS CONSIST OF: Paid-in capital ................................................... $2,467,106,821 $2,055,357,460 $377,578,312 Undistributed net investment income ............................... 65,047 37,687 -- -------------- -------------- ------------ NET ASSETS ........................................................ $2,467,171,868 $2,055,395,147 $377,578,312 ============== ============== ============ NET ASSETS BY SHARE CLASS: Institutional Shares ......................................... $ 80,894,337 $ 84,964,728 $ 481,190 Service Shares ............................................... 1,052,405,104 837,767,851 -- W Shares ..................................................... 1,333,872,427 1,132,662,568 377,097,122 -------------- -------------- ------------ $2,467,171,868 $2,055,395,147 $377,578,312 ============== ============== ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING: ($0.01 par value, unlimited authorized shares): Institutional Shares .......................................... 80,893,581 84,964,710 481,083 Service Shares ................................................ 1,052,360,041 837,732,634 -- W Shares ...................................................... 1,333,852,945 1,132,655,463 377,103,200 NET ASSET VALUE PER SHARE: Institutional Shares ........................................... $ 1.00 $ 1.00 $ 1.00 -------------- -------------- ------------ Service Shares ................................................. $ 1.00 $ 1.00 $ -- -------------- -------------- ------------ W Shares ....................................................... $ 1.00 $ 1.00 $ 1.00 -------------- -------------- ------------ - ---------- *Investments at cost .............................................. $2,465,934,241 $2,054,574,583 $377,468,904 The accompanying notes are an integral part of the financial statements. 21
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF OPERATIONS For the Six-Month Period Ended December 31, 2009 (Unaudited) PRIME MONEY MARKET U.S. GOVERNMENT TAX-EXEMPT FUND MONEY MARKET FUND MONEY MARKET FUND -------------- ----------------- ----------------- INVESTMENT INCOME: Interest ...................................................... $ 5,311,622 $ 3,080,918 $ 701,032 ----------- ----------- ----------- EXPENSES: Advisory fees ................................................. 4,291,472 3,625,271 699,716 Administration fees ........................................... 201,310 163,907 28,815 Sub-administration and accounting fees ........................ 433,658 385,068 108,980 Custody fees .................................................. 162,582 141,092 25,813 Transfer agent fees ........................................... 214,164 180,013 37,580 Shareholder service fees Service Shares ............................................. 831,218 645,285 -- W Shares ................................................... 1,072,776 858,860 282,765 Distribution fees Service Shares ............................................. 554,145 430,190 -- Professional fees ............................................. 65,269 58,242 38,437 Reports to shareholders ....................................... 23,647 18,388 12,080 Registration fees ............................................. 24,584 8,916 10,982 Trustees' fees ................................................ 15,504 15,504 15,504 Compliance services ........................................... 4,542 4,542 4,542 Temporary Guarantee Program Participation Fees .......................................... 326,760 211,128 53,206 Other ....................................................... 158,549 127,315 26,304 ----------- ----------- ----------- Total expenses before fee waivers ............................. 8,380,180 6,873,721 1,344,724 Expenses waived/reimbursed by Adviser Advisory fees Institutional ............................................. (27,999) (121,068) (1,165) Service Shares ............................................ (312,982) (795,133) -- W Shares .................................................. (402,583) (1,049,462) (378,674) Shareholder service fees Service Shares ............................................ (831,218) (645,285) -- W Shares .................................................. (1,072,776) (858,860) (282,765) Distribution fees Service Shares ............................................ (554,145) (430,190) -- ----------- ----------- ----------- Total expenses, net ........................................... 5,178,477 2,973,723 682,120 ----------- ----------- ----------- Net investment income ......................................... 133,145 107,195 18,912 ----------- ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................................... $ 133,145 $ 107,195 $ 18,912 =========== =========== =========== The accompanying notes are an integral part of the financial statements. 22
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS PRIME MONEY MARKET FUND --------------------------------- FOR THE SIX-MONTH FOR THE PERIOD ENDED YEAR DECEMBER 31, ENDED 2009 JUNE 30, (UNAUDITED) 2009 --------------- --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income .............................................................. $ 133,145 $ 34,451,730 --------------- --------------- Net increase in net assets resulting from operations ................................... 133,145 34,451,730 --------------- --------------- Distributions to shareholders from: Net investment income: Institutional Shares ........................................................... (6,216) (361,321) Service Shares ................................................................. (55,412) (15,739,200) W Shares ....................................................................... (71,517) (18,351,209) --------------- --------------- Total distributions .................................................................... (133,145) (34,451,730) --------------- --------------- Fund share transactions (at $1.00 per share): Proceeds from shares sold: Institutional Shares ........................................................... 382,759,236 580,368,100 Service Shares ................................................................. 1,924,459,513 4,045,331,310 W Shares ....................................................................... 1,127,986,581 2,407,067,411 Cost of shares issued on reinvestment of distributions: Institutional Shares ........................................................... 18,455 163,536 Service Shares ................................................................. 9,639 2,902,935 W Shares ....................................................................... 491 29,087 Cost of shares redeemed: Institutional Shares ........................................................... (434,603,451) (472,402,399) Service Shares ................................................................. (2,114,386,774) (4,704,498,232) W Shares ....................................................................... (1,380,544,746) (2,867,396,777) --------------- --------------- Net decrease in net assets from Fund share transactions ................................................................. (494,301,056) (1,008,435,029) --------------- --------------- Total decrease in net assets ........................................................... (494,301,056) (1,008,435,029) NET ASSETS: Beginning of Period ................................................................ 2,961,472,924 3,969,907,953 --------------- --------------- End of Period ...................................................................... $ 2,467,171,868 $ 2,961,472,924 =============== =============== Undistributed net investment income .................................................... $ 65,047 $ 65,047 --------------- --------------- The accompanying notes are an integral part of the financial statements. 23
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS U.S. GOVERNMENT MONEY MARKET FUND -------------------------------- FOR THE SIX-MONTH FOR THE PERIOD ENDED YEAR DECEMBER 31, ENDED 2009 JUNE 30, (UNAUDITED) 2009 -------------- --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ............................................................... $ 107,195 $ 16,975,633 Net realized gain on investments .................................................... -- 198 -------------- --------------- Net increase in net assets resulting from operations .................................... 107,195 16,975,831 -------------- --------------- Distributions to shareholders from: Net investment income: Institutional Shares ............................................................ (6,923) (3,922,640) Service Shares .................................................................. (43,027) (6,431,905) W Shares ........................................................................ (57,245) (6,621,088) -------------- --------------- Total distributions ..................................................................... (107,195) (16,975,633) -------------- --------------- Fund share transactions (at $1.00 per share): Proceeds from shares sold: Institutional Shares ............................................................ 81,035,223 718,947,159 Service Shares .................................................................. 1,036,320,104 2,545,181,323 W Shares ........................................................................ 665,016,237 2,283,243,676 Cost of shares issued on reinvestment of distributions: Institutional Shares ............................................................ 10 3,120 Service Shares .................................................................. 573 84,222 W Shares ........................................................................ -- -- Cost of shares redeemed: Institutional Shares ............................................................ (425,342,292) (416,250,456) Service Shares .................................................................. (993,529,924) (2,858,406,983) W Shares ........................................................................ (744,651,521) (1,518,993,403) -------------- --------------- Net increase (decrease) in net assets from Fund share transactions ............................................................. (381,151,590) 753,808,658 -------------- --------------- Total increase (decrease) in net assets ................................................. (381,151,590) 753,808,856 NET ASSETS: Beginning of Period ................................................................. 2,436,546,737 1,682,737,881 -------------- --------------- End of Period ....................................................................... $2,055,395,147 $ 2,436,546,737 ============== =============== Undistributed net investment income ..................................................... $ 37,687 $ 37,687 -------------- --------------- The accompanying notes are an integral part of the financial statements. 24
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS TAX-EXEMPT MONEY MARKET FUND ------------------------------- FOR THE SIX-MONTH FOR THE PERIOD ENDED YEAR DECEMBER 31, ENDED 2009 JUNE 30, (UNAUDITED) 2009 ------------- --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ................................................................ $ 18,912 $ 3,813,770 ------------- --------------- Net increase in net assets resulting from operations ...................................................................... 18,912 3,813,770 ------------- --------------- Distributions to shareholders from: Net investment income: Institutional Shares ............................................................. (61) (10,594) W Shares ......................................................................... (18,851) (3,803,176) ------------- --------------- Total distributions ...................................................................... (18,912) (3,813,770) ------------- --------------- Fund share transactions (at $1.00 per share): Proceeds from shares sold: Institutional Shares ............................................................. 23,952,140 58,560,107 W Shares ......................................................................... 539,852,537 1,152,624,059 Cost of shares issued on reinvestment of distributions: Institutional Shares ............................................................. 35 4,891 W Shares ......................................................................... 310 50,093 Cost of shares redeemed: Institutional Shares ............................................................. (25,167,255) (58,361,445) W Shares ......................................................................... (536,185,815) (1,271,623,248) ------------- --------------- Net increase (decrease) in net assets from Fund share transactions ................................................................... 2,451,952 (118,745,543) ------------- --------------- Total increase (decrease) in net assets .................................................. 2,451,952 (118,745,543) NET ASSETS: Beginning of Period .................................................................. 375,126,360 493,871,903 ------------- --------------- End of Period ........................................................................ $ 377,578,312 $ 375,126,360 ============= =============== Undistributed net investment income ...................................................... $ -- $ -- ------------- --------------- The accompanying notes are an integral part of the financial statements. 25
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS ============================================================================================================================ The following tables include selected data for a share outstanding throughout each period and other performance information derived from the financial statements. The total returns in the tables represent the rate an investor would have earned or lost on an investment in the Funds (assuming reinvestment of all dividends and distributions). This information should be read in conjunction with the financial statements and notes thereto. FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ----------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- ------- ------- ------- ------ PRIME MONEY MARKET FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD .................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- -------- ------- ------- ------- ------ INVESTMENT OPERATIONS: Net investment income ................................. --(3) 0.01 0.04 0.05 0.04 0.02 ------- -------- ------- ------- ------- ------ DISTRIBUTIONS: From net investment income ............................ --(3) (0.01) (0.04) (0.05) (0.04) (0.02) ------- -------- ------- ------- ------- ------ NET ASSET VALUE -- END OF PERIOD .......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======== ======= ======= ======= ====== TOTAL RETURN .............................................. 0.01%** 1.14% 4.08% 5.05% 3.82% 1.74% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(1,2) Expenses: Including expense limitations ...................................... 0.39%* 0.43% 0.40% 0.41% 0.51% 0.50% Excluding expense limitations ...................................... 0.45%* 0.43% 0.40% 0.41% 0.51% 0.50% Net investment income ................................. 0.01%* 0.66% 4.24% 4.94% 3.70% 1.65% Net assets at end of period (000 omitted) ......................................... $80,894 $132,721 $24,591 $24,400 $11,986 $6,683 - ---------- * Annualized. ** Not annualized. (1) Prior to June 23, 2006, the Institutional Shares were known as the Investor Shares and were subject to a Rule 12b-1 distribution fee. (2) For the periods prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I -- Prime Money Market Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. (3) Less than $0.01 per share. The accompanying notes are an integral part of the financial statements. 26
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 -------------------------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ ---------- ---------- ---------- ---------- ---------- PRIME MONEY MARKET FUND -- SERVICE SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- ---------- ---------- ---------- ---------- ---------- INVESTMENT OPERATIONS: Net investment income .................. --(2) 0.01 0.04 0.05 0.04 0.01 ---------- ---------- ---------- ---------- ---------- ---------- DISTRIBUTIONS: From net investment income ............. --(2) (0.01) (0.04) (0.05) (0.04) (0.01) ---------- ---------- ---------- ---------- ---------- ---------- NET ASSET VALUE -- END OF PERIOD ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ========== ========== ========== ========== TOTAL RETURN ............................... 0.01%** 0.90% 3.82% 4.79% 3.63% 1.48% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(1) Expenses Including expense limitations ....................... 0.39%* 0.67% 0.65% 0.67% 0.69% 0.74% Excluding expense limitations ....................... 0.70%* 0.68% 0.65% 0.67% 0.69% 0.74% Net investment income .................. 0.01%* 0.98% 3.72% 4.68% 3.61% 1.48% Net assets at end of period (000 omitted) .......................... $1,052,405 $1,242,322 $1,898,587 $1,692,102 $2,664,251 $2,201,829 - ---------- * Annualized. ** Not annualized. (1) For the periods prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I -- Prime Money Market Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. (2) Less than $0.01 per share. The accompanying notes are an integral part of the financial statements. 27
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH FOR THE PERIOD PERIOD ENDED FOR THE YEARS OCTOBER 2, 2006(1) DECEMBER 31, ENDED JUNE 30, THROUGH 2009 ----------------------- JUNE 30, (UNAUDITED) 2009 2008 2007 ------------ ---------- ---------- ------------------- PRIME MONEY MARKET FUND -- W SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ...................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- ---------- ---------- ---------- INVESTMENT OPERATIONS: Net investment income ................................... --(2) 0.01 0.04 0.04 ---------- ---------- ---------- ---------- DISTRIBUTIONS: From net investment income .............................. --(2) (0.01) (0.04) (0.04) ---------- ---------- ---------- ---------- NET ASSET VALUE -- END OF PERIOD ............................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ========== ========== TOTAL RETURN ................................................ 0.01%** 0.99% 3.92% 3.63%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations ........................................ 0.39%* 0.58% 0.55% 0.56%* Excluding expense limitations ........................................ 0.60%* 0.58% 0.55% 0.56%* Net investment income ................................... 0.01%* 1.01% 3.72% 4.80%* Net assets at end of period (000 omitted) ........................................... $1,333,872 $1,586,430 $2,046,730 $1,403,380 - ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) Less than $0.01 per share. The accompanying notes are an integral part of the financial statements. 28
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ----------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- -------- ------ ------ ------- U.S. GOVERNMENT MONEY MARKET FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD .................................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- -------- -------- ------ ------ ------- INVESTMENT OPERATIONS: Net investment income ................................. --(3) 0.01 0.04 0.05 0.04 0.02 ------- -------- -------- ------ ------ ------- DISTRIBUTIONS: From net investment income ............................ --(3) (0.01) (0.04) (0.05) (0.04) (0.02) ------- -------- -------- ------ ------ ------- NET ASSET VALUE -- END OF PERIOD .......................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======== ======== ====== ====== ======= TOTAL RETURN .............................................. 0.01%** 0.88% 3.61% 4.92% 3.66% 1.63% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(1,2) Expenses: Including expense limitations ...................................... 0.28%* 0.42% 0.47% 0.49% 0.61% 0.59% Excluding expense limitations ...................................... 0.46%* 0.44% 0.47% 0.49% 0.61% 0.59% Net investment income ................................. 0.01%* 0.79% 3.12% 4.79% 3.58% 1.44% Net assets at end of period (000 omitted) ......................................... $84,965 $429,272 $126,574 $ 333 $3,480 $ 3,939 - ---------- * Annualized. ** Not annualized. (1) Prior to June 23, 2006, the Institutional Shares were known as the Investor Shares and were subject to a Rule 12b-1 distribution fee. (2) For the periods prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I -- U.S. Government Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. (3) Less than $0.01 per share. The accompanying notes are an integral part of the financial statements. 29
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ------------------------------------------------------ (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- ---------- -------- -------- -------- U.S. GOVERNMENT MONEY MARKET FUND -- SERVICE SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- ---------- -------- -------- -------- INVESTMENT OPERATIONS: Net investment income .......................... --(2) 0.01 0.03 0.05 0.03 0.01 -------- -------- ---------- -------- -------- -------- DISTRIBUTIONS: From net investment income ..................... --(2) (0.01) (0.03) (0.05) (0.03) (0.01) -------- -------- ---------- -------- -------- -------- NET ASSET VALUE -- END OF PERIOD ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ========== ======== ======== ======== TOTAL RETURN ....................................... 0.01%** 0.69% 3.36% 4.66% 3.49% 1.41% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(1) Expenses: Including expense limitations ............................... 0.28%* 0.62% 0.72% 0.75% 0.77% 0.79% Excluding expense limitations ............................... 0.71%* 0.69% 0.72% 0.75% 0.77% 0.79% Net investment income .......................... 0.01%* 0.72% 3.26% 4.56% 3.45% 1.39% Net assets at end of period (000 omitted) .................................. $837,768 $794,977 $1,108,117 $616,113 $875,906 $741,514 - ----------- * Annualized. ** Not annualized. (1) For the periods prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I -- U.S. Government Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. (2) Less than $0.01 per share. The accompanying notes are an integral part of the financial statements. 30
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH FOR THE PERIOD PERIOD ENDED FOR THE YEARS OCTOBER 2, 2006(1) DECEMBER 31, ENDED JUNE 30, THROUGH 2009 --------------------- JUNE 30, (UNAUDITED) 2009 2008 2007 ------------ ---------- -------- ------------------- U.S. GOVERNMENT MONEY MARKET FUND -- W SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ........................................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- ---------- -------- -------- INVESTMENT OPERATIONS: Net investment income ..................................... --(2) 0.01 0.03 0.03 ---------- ---------- -------- -------- DISTRIBUTIONS: From net investment income ................................ --(2) (0.01) (0.03) (0.03) ---------- ---------- -------- -------- NET ASSET VALUE -- END OF PERIOD .............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ======== ======== TOTAL RETURN .................................................. 0.01%** 0.76% 3.46% 3.53%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations .......................................... 0.28%* 0.54% 0.62% 0.65%* Excluding expense limitations .......................................... 0.61%* 0.59% 0.62% 0.65%* Net investment income ..................................... 0.01%* 0.56% 3.26% 4.68%* Net assets at end of period (000 omitted) ............................................. $1,132,663 $1,212,298 $448,047 $224,341 - ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) Less than $0.01 per share. The accompanying notes are an integral part of the financial statements. 31
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 -------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ ------ ------ ------ ------- ------- TAX-EXEMPT MONEY MARKET FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ....................................... $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ----- ------ ------ ------ ------- ------- INVESTMENT OPERATIONS: Net investment income .................................... --(3) 0.01 0.02 0.03 0.02 0.01 ----- ------ ------ ------ ------- ------- DISTRIBUTIONS: From net investment income ............................... --(3) (0.01) (0.02) (0.03) (0.02) (0.01) ----- ------ ------ ------ ------- ------- NET ASSET VALUE -- END OF PERIOD ............................. $1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ===== ====== ====== ====== ======= ======= TOTAL RETURN ................................................. 0.01%** 0.75% 2.36% 3.14% 2.39% 1.16% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(1,2) Expenses: Including expense limitations ......................................... 0.36%* 0.53% 0.51% 0.52% 0.63% 0.64% Excluding expense limitations ......................................... 0.56%* 0.54% 0.51% 0.52% 0.63% 0.64% Net investment income .................................... 0.01%* 0.61% 1.86% 3.06% 2.30% 0.98% Net assets at end of period (000 omitted) ............................................ $ 481 $1,696 $1,493 $ 793 $13,210 $13,084 - ---------- * Annualized. ** Not annualized. (1) Prior to June 23, 2006, the Institutional Shares were known as the Investor Shares and were subject to a rule 12b-1 distribution fee. (2) For the periods prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I -- Tax-Exempt Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. (3) Less than $0.01 per share. The accompanying notes are an integral part of the financial statements. 32
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ---------------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- -------- -------- -------- -------- TAX-EXEMPT MONEY MARKET FUND -- W SHARES(1) NET ASSET VALUE -- BEGINNING OF PERIOD ............................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS: Net investment income ............................ --(3) 0.01 0.02 0.03 0.02 0.01 -------- -------- -------- -------- -------- -------- DISTRIBUTIONS: From net investment income ....................... --(3) (0.01) (0.02) (0.03) (0.02) (0.01) -------- -------- -------- -------- -------- -------- NET ASSET VALUE -- END OF PERIOD ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== ======== TOTAL RETURN ......................................... 0.01%** 0.62% 2.21% 2.96% 2.23% 0.98% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(2) Expenses: Including expense limitations ................................. 0.36%* 0.66% 0.66% 0.69% 0.78% 0.80% Excluding expense limitations ................................. 0.71%* 0.68% 0.66% 0.69% 0.78% 0.80% Net investment income ............................ 0.01%* 0.64% 2.12% 2.92% 2.23% 0.96% Net assets at end of period (000 omitted) .................................... $377,097 $373,430 $492,379 $403,631 $418,447 $346,249 - ---------- * Annualized. ** Not annualized. (1) Formerly Service Shares. Service Shares were redesignated as W Shares effective September 12, 2006. (2) For the periods prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I -- Tax-Exempt Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. (3) Less than $0.01 per share. The accompanying notes are an integral part of the financial statements. 33
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) ============================================================================================================================ 1. DESCRIPTION OF THE FUNDS. WT Mutual Fund (the "Trust") is registered under the Investment Company Act of 1940, as amended, (the "1940 Act") as an open-end management investment company and was organized as a Delaware statutory trust on June 1, 1994. The Amended and Restated Agreement and Declaration of Trust permits the Board of Trustees (the "Trustees") to establish series of shares, each of which constitutes a series separate and distinct from the shares of other series. As of December 31, 2009, the Trust offered 12 series, three of which are included in these financial statements. The three series are as follows: Wilmington Prime Money Market Fund ("Prime Money Market Fund"), Wilmington U.S. Government Money Market Fund ("U.S. Government Money Market Fund") and Wilmington Tax- Exempt Money Market Fund ("Tax-Exempt Money Market Fund") (each, a "Fund" and collectively, the "Funds"). The Prime Money Market and U.S. Government Money Market Funds offer three classes of shares: Institutional Shares, Service Shares, and W Shares. The Tax-Exempt Money Market Fund offers two classes of shares: Institutional Shares and W Shares. All classes of shares have identical voting, dividend and liquidation rights. W Shares and Service Shares are offered to investors who use a financial intermediary to process transactions with the Funds and are subject to a shareholder servicing fee. Service Shares are also subject to a Rule 12b-1 distribution fee. 2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the significant accounting policies of the Funds: SECURITY VALUATION. Each Fund values securities utilizing the amortized cost valuation method, which approximates market, and is permitted under Rule 2a-7 under the 1940 Act. This method involves valuing a portfolio security initially at its cost and thereafter adjusting for amortization of premium or accretion of discount to maturity. The Funds utilize a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) - Level 3 -- prices determined using significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) A summary of the inputs used to value the Funds'net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. FEDERAL INCOME TAXES. Each Fund is treated as a separate entity for Federal income tax purposes and intends to continue to qualify as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its income to its shareholders. Therefore, no Federal income tax provision has been made. Tax positions taken or expected to be taken in the course of preparing the Funds' tax returns are evaluated to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions and has concluded that no provision for income tax is required in the Funds' financial statements. The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. 34
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ SECURITY TRANSACTIONS AND INVESTMENT INCOME. Investment security transactions are accounted for on a trade date basis for financial reporting purposes. Each Fund uses the specific identification method for determining realized gains and losses on investments for both financial and Federal income tax reporting purposes. Interest income is recorded on the accrual basis and includes the amortization of premium and the accretion of discount. The Funds record expenses as incurred. Common expenses of the Trust are allocated on a pro rata basis among the series based on relative net assets. CLASS ACCOUNTING. In calculating net asset value per share for each class, investment income, realized and unrealized gains and losses, and expenses other than class specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Expenses relating to a specific class are charged directly to that class. REPURCHASE AGREEMENTS. Each Fund, through its custodian, receives delivery of the underlying securities used to collateralize repurchase agreements, the market value of which is required to be in an amount at least equal to 101% of the resale price. The Funds' investment adviser is responsible for determining that the market value of these underlying securities is maintained at all times at a level at least equal to 101% of the resale price. In the event of default of the obligation to repurchase, each Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Provisions of each agreement require that the market value of the collateral is sufficient in the event of default; however, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. DISTRIBUTIONS TO SHAREHOLDERS. Distributions from net investment income are declared daily and paid monthly. Distributions from net realized gains, if any, will be declared and paid annually. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3. ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES. Rodney Square Management Corporation ( "RSMC "), a wholly owned subsidiary of Wilmington Trust Corporation, serves as the investment adviser to each Fund. For its services, RSMC receives an advisory fee at an annualized rate of 0.37% of each Fund's first $1 billion of average daily net assets; 0.33% of each Fund's next $500 million of average daily net assets; 0.30% of each Fund's next $500 million of average daily net assets; and 0.27% of each Fund's average daily net assets in excess of $2 billion. Wilmington Trust Investment Management, LLC ( "WTIM "), also a wholly owned subsidiary of Wilmington Trust Corporation and under common control with RSMC, provides certain investment services, information, advice, assistance and facilities, and performs research, statistical and investment services pursuant to a sub-advisory agreement among the Trust, RSMC and WTIM. WTIM receives a sub-advisory fee from RSMC as agreed to from time to time with RSMC. Effective April 13, 2009, RSMC has voluntarily agreed to reduce its advisory fee and/or reimburse certain of each Fund's operating expenses, or certain class-specific fees and expenses, to maintain a Fund's (or class thereof, as applicable) current annualized yield at or above 0.01% (1 basis point). Under this voluntary arrangement, RSMC may recover from each Fund, subject to approval by the Board of Trustees of WT Mutual Fund (the "Trustees"), amounts waived or reimbursed for a period of up to three years from the year in which RSMC reduced its compensation and/or assumed expenses for the Fund. All or a portion of the following reimbursed expenses may be recaptured by the fiscal years ending: 35
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ EXPIRATION DATE ------------------------------------ 2012 2013 TOTAL ---------- ---------- ---------- Prime Money Market Fund ................................................. $ 158,968 $3,201,703 $3,360,671 U.S. Government Money Market Fund ....................................... 1,384,634 3,899,998 5,284,632 Tax-Exempt Money Market Fund ............................................ 122,130 662,604 784,734 The Funds' Chief Compliance Officer is employed and compensated by RSMC. RSMC provides compliance services to the Funds pursuant to a Compliance Services Agreement. For these services, the Trust pays RSMC an annual fee equal to three-fourths of the Chief Compliance Officer's total compensation. The fees for these services for the six-month period ended December 31, 2009 are shown separately on the Statements of Operations. RSMC provides administrative services to the Funds pursuant to an Administration Agreement. For these services, the Trust pays RSMC a fee at the annual rate of 0.0185% of the Trust's first $2 billion of total aggregate daily net assets; 0.0175% of the Trust's next $2 billion of total aggregate daily net assets; 0.0125% of the Trust's next $2 billion of total aggregate daily net assets; and 0.0080% of the Trust's total aggregate daily net assets in excess of $6 billion. The fees paid to RSMC for these services for the six-month period ended December 31, 2009 are shown separately on the Statements of Operations. PNC Global Investment Servicing (U.S.), Inc. provides sub-administration, accounting and transfer agent services pursuant to an agreement with RSMC and the Trust for which it receives fees directly from the Funds. COMPENSATION OF TRUSTEES AND OFFICERS. Except for the Funds' Chief Compliance Officer, Trustees and Officers of the Funds who are employees or officers of RSMC or WTIM do not receive any compensation from the Funds. Trustees of the Funds who are not employees or officers of RSMC or WTIM receive compensation and reimbursement of expenses from the Funds. Under a Deferred Compensation Plan (the "Plan") adopted August 15, 2002, a disinterested Trustee may elect to defer receipt of all, or a portion, of their annual compensation. Deferred amounts are invested in shares of a series of the Trust and remain so until distributed in accordance with the Plan. Trustees' fees reflected in the accompanying financial statements include total compensation earned, whether elected to be paid in cash or deferred under the Plan. Service Shares and W Shares of each Fund are subject to a shareholder service plan authorizing them to pay service providers an annual fee not exceeding 0.25% of each Fund's average daily net assets in Service Shares and W Shares to compensate service providers who maintain a service relationship. The Board of Trustees has authorized payments of up to 0.15% of each Fund's average daily net assets in Service Shares and W Shares, respectively. Service Shares of each Fund are subject to a Rule 12b-1 Distribution Plan which provides for payments of up to 0.25% of each Fund's average daily net assets in Service Shares. The Board of Trustees currently has authorized annual payments of 0.10% of the average daily net assets of each Fund's Service Shares. The Distribution Plan and each Distribution Agreement may not be amended to increase the maximum 12b-1 Fee of 0.25% without approval by a majority of the outstanding shares of each Fund's Service Shares. 36
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ Wilmington Trust Company ("WTC"), an affiliate of RSMC, serves as custodian to the Funds and PFPC Trust Company serves as sub-custodian to the Funds. The Funds pay WTC for its services as custodian, and WTC pays PFPC Trust Company for its services as sub-custodian. The fees for these services for the six-month period ended December 31, 2009 are shown separately on the Statements of Operations. 4. FEDERAL TAX INFORMATION. Distributions to shareholders from net investment income and realized gains are determined in accordance with Federal income tax regulations, which may differ from net investment income and realized gains recognized for financial reporting purposes. Additionally, net short-term realized gains are treated as "ordinary income" for tax purposes. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on the tax treatment; temporary differences due to timing of recognition of income or gain do not require such reclassification. The tax character of distributions paid for the six-month period ended December 31, 2009 and the year ended June 30, 2009 were as follows: PRIME MONEY U.S. GOVERNMENT TAX-EXEMPT MARKET FUND MONEY MARKET FUND MONEY MARKET FUND ----------- ----------------- ----------------- SIX-MONTH PERIOD ENDED DECEMBER 31, 2009 Ordinary income ............................................... $ 133,145 $ 107,195 $ -- Tax-exempt income ............................................. -- -- 18,912 YEAR ENDED JUNE 30, 2009 Ordinary income ............................................... $34,451,730 $16,975,633 $ -- Tax-exempt income ............................................. -- -- 3,813,770 The components of accumulated earnings on a tax basis are determined at fiscal year-end. Accordingly, the tax balances have not been determined as of December 31, 2009. 5. CREDIT RISK. Obligations of agencies and instrumentalities of the U.S. Government are not direct obligations of the U.S. Treasury and thus may or may not be backed by the "full faith and credit" of the United States. Payment of interest and principal on these obligations, although generally backed directly or indirectly by the U.S. Government, may be backed solely by the issuing instrumentality. Approximately 11% of the investments of the Tax-Exempt Money Market Fund on December 31, 2009 were insured by private issuers that guarantee payment of principal and interest in the event of default, or were backed by letters of credit issued by domestic and foreign banks or financial institutions. 6. CONTRACTUAL OBLIGATIONS. The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds' existing contracts and expects the risk of loss to be remote. 37
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ 7. U.S. TREASURY GUARANTEE PROGRAM. The Funds participated in the U.S. Treasury Department's Temporary Guarantee Program for Money Market Funds (the "Program") since its inception until its expiration on September 18, 2009. As a participant in the Program each Fund paid a participation fee of 0.04% on assets as of September 19, 2008. The amounts shown on the Statements of Operations are the portion of the fees accrued from July 1, 2009 through September 18, 2009. 8. RECENT ACCOUNTING PRONOUNCEMENT. In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06 "Improving Disclosures about Fair Value Measurements." ASU 2010-06 amends FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, to require additional disclosures regarding fair value measurements. Certain disclosures required by ASU No. 2010-06 are effective for interim and annual reporting periods beginning after December 15, 2009, and other required disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact ASU No. 2010-06 will have on its financial statement disclosures. 9. SUBSEQUENT EVENTS. Management has evaluated the impact of all subsequent events on the Funds through February 24, 2010, the date the financial statements were available for issuance, and has determined that the following subsequent events require recognition or disclosure in the financial statements. On February 2, 2010, The PNC Financial Services Group, Inc. ("PNC") entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") with The Bank of New York Mellon Corporation ("BNY Mellon"). Upon the terms and subject to the conditions set forth in the Stock Purchase Agreement, which has been approved by the board of directors of each company, PNC will sell to BNY Mellon (the "Stock Sale") 100% of the issued and outstanding shares of PNC Global Investment Servicing Inc., an indirect wholly-owned subsidiary of PNC. The Stock Sale includes PNC Global Investment Servicing (U.S.) Inc., and PFPC Trust Company and is expected to close in the third quarter of 2010. 38
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- EVALUATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS ============================================================================================================================ At a meeting held on August 20, 2009, the Board of Trustees, including a majority of those trustees who are not "interested persons" as such term is defined in the 1940 Act ("Independent Trustees"), unanimously approved the continuation for an additional one-year period of the existing investment advisory agreement between WT Mutual Fund (the "Trust"), on behalf of the Wilmington Prime Money Market Fund, Wilmington Tax-Exempt Money Market Fund, and Wilmington U.S. Government Money Market Fund (each a "Fund"), and RSMC (the "RSMC Agreement"). The Trustees also unanimously approved the continuation of the sub-advisory agreement among the Trust on behalf of each of the Funds, RSMC and Wilmington Trust Investment Management, LLC ("WTIM") (the "WTIM Agreement" and with the RSMC Agreement, the "Agreements"), pursuant to which WTIM provides certain investment services, information, advice, assistance and facilities, research and statistical investment services. WTIM is a wholly owned subsidiary of Wilmington Trust Corporation and is under common control with RSMC. Employees of WTIM are also employees of RSMC. Prior to voting, the Independent Trustees reviewed the Agreements with RSMC, WTIM and legal counsel and received advice from such counsel regarding the legal standards to be followed in their consideration of the Agreements. The Independent Trustees also reviewed the Agreements in executive session with counsel at which time no representatives of RSMC or WTIM were present. Before meeting to determine whether to approve the continuance of the Agreements, the Board had the opportunity to review written materials provided by RSMC and WTIM. The materials generally included information regarding (i) services performed for the Trust and the Funds, (ii) the size and qualifications of RSMC's and WTIM's portfolio management staff, (iii) any potential or actual material conflicts of interest which may arise in connection with RSMC's and WTIM's management of a Fund, (iv) investment performance, (v) brokerage selection procedures, (vi) the procedures for allocating investment opportunities between a Fund and other clients, (vii) results of any independent audit or regulatory examination, including any recommendations or deficiencies noted, (viii) any litigation, investigation or administrative proceeding which may have a material impact on RSMC's or WTIM's ability to service the Funds, (ix) compliance with a Fund's investment objective, policies and practices (including its code of ethics), federal securities laws and other regulatory requirements, and (x) to the extent applicable, its proxy voting policies. RSMC and WTIM provided information regarding the advisory fees received and an analysis of these fees in relation to the delivery of services to each of the Funds, the costs of providing such services, the profitability of the firm in general and as a result of the fees received from the Funds and any other ancillary benefit resulting from RSMC's or WTIM's relationship with the Trust. The Board also received a memorandum from counsel to the Trust which outlined the duties of trustees when considering approval of an investment advisory agreement and related legal standards. In addition, the Board received a report prepared by two of the Trustees that considered: (i) investment performance; (ii) compliance and regulatory issues; (iii) operations; (iv) asset growth; (v) profitability; and (vi) expense control. The Board considered and weighed the above information based upon its accumulated experience in governing the Trust and working with RSMC on matters relating to the Trust. During its deliberations on whether to approve the continuance of the Agreements, the Board considered many factors. The Board considered the nature, extent and quality of the services provided by RSMC and WTIM. The Trustees considered the services provided to each Fund by RSMC and WTIM as compared to services provided by other advisers which manage mutual funds with investment objectives, strategies and policies similar to those of the Funds. The Trustees concluded that the nature, extent and quality of the services provided by RSMC and WTIM to each Fund were appropriate and consistent with the terms of the Agreements, that the quality of those services has been consistent with industry norms and that each Fund is likely to benefit from the continued provision of those services. They also concluded that RSMC and 39
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- EVALUATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS -- CONTINUED ============================================================================================================================ WTIM have sufficient personnel, with the appropriate education and experience, to serve each Fund effectively and have demonstrated their continuing ability to attract and retain qualified personnel. The Board considered the investment performance of each Fund, RSMC and WTIM. The Board reviewed and considered comparative performance data and each Fund's performance relative to other mutual funds with similar investment objectives, strategies and policies, its respective benchmark index and its Lipper peer group rankings. The Board also noted that it reviews and evaluates each Fund's investment performance on an on-going basis throughout the year. The Trustees considered the consistency of performance results and the short-term and long-term performance of each Fund. They concluded that the performance of each Fund, RSMC and WTIM is within an acceptable range of performance relative to other mutual funds with similar investment objectives, strategies and policies. The Board considered the costs of the services provided by RSMC and WTIM, the compensation and benefits received by RSMC and WTIM in providing services to the Funds, as well as RSMC's and WTIM's profitability. In addition, the Board considered any direct or indirect revenues received by affiliates of RSMC and WTIM. The Board recognized that RSMC's profitability is an important factor in providing service to the Funds. The Board was satisfied that RSMC's profits are sufficient to continue as a viable concern generally and as investment adviser of each Fund specifically. The Board concluded that RSMC's fees and profits derived from its relationship with the Trust in light of each Fund's expenses, are reasonable in relation to the nature and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies. The Trustees also concluded that the overall expense ratio of each Fund is reasonable, taking into account the size of the Fund, the quality of services provided by RSMC and WTIM, the investment performance of the Fund and the expense limitations agreed to by RSMC. The Trustees also considered the extent to which economies of scale would be realized relative to fee levels as each Fund grows, and whether the advisory fee levels reflect these economies of scale for the benefit of shareholders. The Board determined that economies of scale should be achieved at higher asset levels for each of the Funds for the benefit of shareholders due to certain break-points in the advisory fees. The Board recognized that the economies of scale achieved will be primarily due to the ability of the Trust and each Fund to spread its fixed costs across a larger asset base and not through negotiated breakpoints in the advisory fees. The Trustees considered whether any events have occurred that would constitute a reason for the Trustees not to approve the continuation of the Agreements and concluded there were not. After consideration of all the factors, and taking into consideration the information presented during previous meetings of the Board, the Trustees determined that it would be in the best interests of each Fund and its shareholders to approve the continuation of the Agreements for an additional one-year period. In arriving at its decision, the Trustees did not identify any single matter as controlling, but made their determination in light of all the facts and circumstances. 40
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TRUSTEES AND OFFICERS (UNAUDITED) ============================================================================================================================ WT Mutual Fund (the "Trust") is governed by a Board of Trustees (the "Trustees"). The primary responsibility of the Trustees is to represent the interest of the Trust's shareholders and to provide oversight management of the Trust. The following table presents certain information regarding the Trustees and Officers of the Trust. Each person listed under "Interested Trustee" below is an "interested person" of the Trust's investment advisers, within the meaning of the Investment Company Act of 1940, as amended (the "1940 Act"). Each person who is not an "interested person" of the Trust's investment advisers or the Trust within the meaning of the 1940 Act is referred to as an "Independent Trustee" and is listed under such heading below. Unless specified otherwise, the address of each Trustee and Officer as it relates to the Trust is 1100 N. Market Street, Wilmington, DE 19890. The Statement of Additional Information for the Funds contains additional information about the Trustees and is available, without charge, upon request, by calling (800) 336-9970 or by visiting the Funds' website at www.wilmingtonfunds.com. INTERESTED TRUSTEES NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ------------------------- ------------------------------------------- -------------------------------------------------- TED T. CECALA(2) Trustee Director, Chairman of the Board, and Chief Date of Birth: 1/49 Executive Officer of Wilmington Trust Corporation Shall serve at the pleasure of the Board and Wilmington Trust Company since 1996; Member of 12 Funds and until successor is elected and the Board of Managers of Cramer Rosenthal McGlynn, qualified. Trustee since August 2007. LLC and Roxbury Capital Management, LLC (registered investment advisers). Wilmington Trust Corporation; Wilmington Trust Company. - ---------------------------------------------------------------------------------------------------------------------------- ROBERT J. CHRISTIAN(3) Trustee Retired since February 2006; Executive Vice Date of Birth: 2/49 President of Wilmington Trust Company from Shall serve until death, resignation or February 1996 to February 2006; President of 12 Funds removal. Trustee since October 1998, Rodney Square Management Corporation ("RSMC") from President and Chairman of Board from 1996 to 2005; Vice the President of RSMC 2005 to October 1998 to January 2006. 2006. FundVantage Trust (13 portfolios); Optimum Fund Trust (6 portfolios) (registered investment companies). (1) The "Fund Complex" currently consists of the Trust (12 funds) and CRM Mutual Fund Trust (8 funds). (2) Mr. Cecala is an "Interested Trustee" by reason of his position with Wilmington Trust Corporation and Wilmington Trust Company, each an affiliate of RSMC, an investment adviser to the Trust. (3) Mr. Christian is an "Interested Trustee" by reason of his previous employment with RSMC, the investment adviser to the Trust. 41
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TRUSTEES AND OFFICERS (UNAUDITED) -- CONTINUED ============================================================================================================================ INDEPENDENT TRUSTEES NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ------------------------- ------------------------------------------- -------------------------------------------------- ROBERT ARNOLD Trustee Founder and co-manager, R.H. Arnold & Co., Inc. Date of Birth: 3/44 (financial consulting) since 1989. Shall serve until death, resignation or 12 Funds removal. Trustee since May 1997. First Potomac Realty Trust (real estate investment trust). - ---------------------------------------------------------------------------------------------------------------------------- DR. ERIC BRUCKER Trustee Professor of Economics, Widener University since Date of Birth: 12/41 July 2004; formerly Dean, School of Business Shall serve until death, resignation or Administration of Widener University from 2001 to 12 Funds removal. Trustee since October 1999. 2004; Dean, College of Business, Public Policy and Health at the University of Maine from September 1998 to June 2001. None - ---------------------------------------------------------------------------------------------------------------------------- NICHOLAS GIORDANO Trustee and Chairman of the Board Consultant, financial services organizations from Date of Birth: 3/43 1997 to present; Interim President, LaSalle University from 1998 to 1999; President and Chief 12 Funds Shall serve until death, resignation or Executive Officer, Philadelphia Stock Exchange removal. Trustee since October 1998. from 1981 to 1997. Kalmar Pooled Investment Trust; The RBB Fund, Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (industrial furnaces and ovens). - ---------------------------------------------------------------------------------------------------------------------------- LOUIS KLEIN, JR. Trustee Self-employed financial consultant since 1991. Date of Birth: 5/35 Shall serve until death, resignation or 20 Funds removal. Trustee since October 1999. CRM Mutual Fund Trust (8 portfolios) (registered investment companies); WHX Corporation (industrial manufacturer). 42
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TRUSTEES AND OFFICERS (UNAUDITED) -- CONTINUED ============================================================================================================================ INDEPENDENT TRUSTEES (CONTINUED) NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ------------------------- ------------------------------------------- -------------------------------------------------- THOMAS LEONARD Trustee Retired since 2008; former Partner with Date of Birth: 2/49 PricewaterhouseCoopers (public accounting) from Shall serve until death, resignation or May 1970 to June 2008. 12 Funds removal. Trustee since July 2008. Alpha One Capital Partner, LLC (2 portfolios) (unregistered investment companies) 43
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TRUSTEES AND OFFICERS (UNAUDITED) -- CONTINUED ============================================================================================================================ EXECUTIVE OFFICERS POSITION(S) HELD WITH TRUST, PRINCIPAL OCCUPATION(S) TERM OF OFFICE AND DURING PAST FIVE YEARS, NAME, ADDRESS AND LENGTH OF TIME OTHER DIRECTORSHIPS DATE OF BIRTH SERVED HELD BY TRUSTEE - ------------------------- ------------------------------------------- -------------------------------------------------- JOHN J. KELLEY President & Chief Executive Officer President of Rodney Square Management Corporation 1100 North Market Street ("RSMC") since 2008; Vice President of Wilmington Wilmington, DE 19890 Shall serve at the pleasure of the Board Trust Investment Management, LLC ("WTIM") since Date of Birth: 9/59 and until successor is elected and 2005; Vice President of PNC Global Investment qualified. Officer since September 2005. Servicing (U.S.), Inc. (formerly PFPC Inc.) from January 2005 to July 2005; Vice President of Administration, 1838 Investment Advisors, LP from 1999 to 2005; Chief Compliance Officer, 1838 Investment Advisors, LP from 2004 to 2005. N/A - ---------------------------------------------------------------------------------------------------------------------------- CLAYTON M. ALBRIGHT Vice President Managing Director, Fixed Income Management, 1100 North Market Street Wilmington Trust since 2007; Director, Fixed Wilmington, DE 19890 Shall serve at the pleasure of the Board Income Research and Portfolio Manager, Wilmington Date of Birth: 9/53 and until successor is elected and Trust from 1996 to 2007; Vice President, RSMC qualified. Officer since October 1998. since 2001; Vice President of WTIM since 2006; Vice President, Wilmington Trust Company since 1997. N/A - ---------------------------------------------------------------------------------------------------------------------------- JOSEPH M. FAHEY, JR. Vice President Investment Adviser, WTIM since 2003; Vice 1100 North Market Street President, RSMC since 1992. Wilmington, DE 19890 Shall serve at the pleasure of the Board Date of Birth: 1/57 and until successor is elected and N/A qualified. Officer since November 1999. - ---------------------------------------------------------------------------------------------------------------------------- JOHN C. MCDONNELL Vice President, Chief Financial Officer & Director of Mutual Fund Administration, WTIM, 1100 North Market Street Treasurer since October 2005; Audit and Assurance - Senior, Wilmington, DE 19890 Deloitte (public accounting) from September 2004 Date of Birth: 4/66 Shall serve at the pleasure of the Board to October 2005; Mutual Fund Administration, 1838 and until successor is elected and Investment Advisors, LP from March 1999 to qualified. Officer since November 2005. September 2004. 44
WILMINGTON FUNDS -- MONEY MARKET FUNDS - -------------------------------------- TRUSTEES AND OFFICERS (UNAUDITED) -- CONTINUED ============================================================================================================================ EXECUTIVE OFFICERS (CONTINUED) POSITION(S) HELD WITH TRUST, PRINCIPAL OCCUPATION(S) TERM OF OFFICE AND DURING PAST FIVE YEARS, NAME, ADDRESS AND LENGTH OF TIME OTHER DIRECTORSHIPS DATE OF BIRTH SERVED HELD - ------------------------- ------------------------------------------- -------------------------------------------------- ANNA M. BENCROWSKY Vice President, Chief Compliance Officer & Chief Compliance Officer, WTIM since 2007; Vice 1100 North Market Street Anti-Money Laundering Officer President, WTIM since 2004; Vice President and Wilmington, DE 19890 Chief Compliance Officer, RSMC since 2004; Vice Date of Birth: 5/51 Shall serve at the pleasure of the Board President and Chief Compliance Officer, 1838 and until successor is elected and Investment Advisors, LP from 1999 to 2004. qualified; Officer since September 2004. N/A - ---------------------------------------------------------------------------------------------------------------------------- EDWARD W. DIFFIN, JR. Vice President & Secretary Director of Mutual Fund Regulatory Administration 1100 North Market Street of WTIM since November 2006; Coleman Counsel Per Wilmington, DE 19890 Shall serve at the pleasure of the Board Diem from November 2005 to November 2006; Vice Date of Birth: 1/52 and until successor is elected and President and Senior Counsel of Merrill Lynch & qualified; Officer since February 2007. Co., Inc. from 1994 to 2005. N/A - ---------------------------------------------------------------------------------------------------------------------------- VOTING PROXIES ON FUND PORTFOLIO SECURITIES A description of the policies and procedures that the Trust used to determine how to vote proxies relating to securities held in the Trust's portfolios is available, without charge, by calling the Fund at (800) 336-9970 or on the SEC's website at http://www.sec.gov. Information regarding how the investment adviser voted proxies for the most recent twelve-month period ended June 30, 2009 is available, without charge, by calling the Fund at (800) 336-9970 or on the SEC's website listed above. 45
TRUSTEES OFFICERS Nicholas A. Giordano John J. Kelley Chairman of the Board President & Chief Executive Officer John C. McDonnell Robert H. Arnold Vice President, Chief Financial Officer & Treasurer Dr. Eric Brucker Edward W. Diffin Jr. Vice President & Secretary Ted T. Cecala Clayton M. Albright Robert J. Christian Vice President Joseph M. Fahey Jr. Louis Klein Jr. Vice President Anna M. Bencrowsky Thomas Leonard Vice President, Chief Compliance Officer & Anti-Money Laundering Officer CUSTODIAN Wilmington Trust Company 1100 North Market Street, Wilmington, DE 19890 INVESTMENT ADVISER AND ADMINISTRATOR Rodney Square Management Corporation 1100 North Market Street, Wilmington, DE 19890 SUB-ADMINISTRATOR, TRANSFER AGENT, AND ACCOUNTING AGENT PNC Global Investment Servicing (U.S.), Inc. 301 Bellevue Parkway, Wilmington, DE 19809 THIS SEMI-ANNUAL REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO SHAREHOLDERS AND TO OTHERS WHO HAVE RECEIVED A CURRENT PROSPECTUS OF THE WILMINGTON MONEY MARKET FUNDS - INSTITUTIONAL, SERVICE AND W SHARES. (WILMINGTON FUNDS LOGO) MONEY_Semi_12/09
FIXED INCOME FUNDS SEMI-ANNUAL REPORT | DECEMBER 31, 2009 SHORT/INTERMEDIATE-TERM BOND BROAD MARKET BOND MUNICIPAL BOND (WILMINGTON FUNDS LOGO) WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- ============================================================================================================================ CONTENTS page page President's Message ................................. 3 Financial Highlights ................................. 46 Expense Disclosure .................................. 15 Notes to Financial Statements ........................ 52 Disclosure of Portfolio Holdings .................... 17 Evaluation and Approval of Investment Advisory and Investments ......................................... 19 Sub-Advisory Agreements ............................. 58 Financial Statements ................................ 41 Trustees and Officers ................................ 60 DESCRIPTION OF INDICES It is not possible to invest directly in an index. All indices represented are unmanaged. All indices assume the reinvestment of dividends and interest income unless otherwise noted. BARCLAYS CAPITAL U.S. CORPORATE HIGH-YIELD INDEX is an unmanaged index of the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody's, Fitch and S&P is Ba1/BB+/BB+ or below. BARCLAYS CAPITAL U.S. CORPORATE INVESTMENT GRADE INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable securities sold by industrial, utilities and financial issuers. The index includes publicly issued U.S. corporate and foreign debentures and secured notes that meet specified maturity, liquidity, and quality requirements. BARCLAYS CAPITAL U.S. GOVERNMENT 1-3 YEAR INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes Treasuries and U.S. agency debentures (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government) with a maturity range between 1 and 3 years. BARCLAYS CAPITAL U.S. GOVERNMENT/CREDIT INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-related, and Corporate sector with maturities of 1 year or greater. BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT/CREDIT INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-related and Corporate sectors with a maturity range between 1 and 10 years. BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes Treasuries and U.S. agency debentures (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government) with a maturity range between 1 and 10 years. BARCLAYS CAPITAL U.S. LONG GOVERNMENT INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes Treasuries and U.S. agency debentures (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government) with a maturity range 10 years or greater. 1
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- DESCRIPTION OF INDICES -- CONTINUED ============================================================================================================================ BARCLAYS CAPITAL U.S. MUNICIPAL INDEX is an unmanaged index that tracks performance of investment grade municipal bonds with remaining maturities of one year or more. BARCLAYS CAPITAL U.S. SHORT/INTERMEDIATE MUNICIPAL INDEX is an unmanaged index that tracks performance of municipal bonds issued after December 31, 1990 with remaining maturities between 1 and 10 years and at least $7 million in outstanding principal. BARCLAYS CAPITAL U.S. TREASURY INDEX is an unmanaged index of USD-denominated, fixed-rate, public obligations of the U.S. Treasury with maturities of 1 year or greater. BOFA MERRILL LYNCH U.S. 3-MONTH TREASURY BILL INDEX is comprised of a single issue purchased at the beginning of the month and held for a full month. At the end of the month that issue is sold and rolled into a newly selected issue. The issue selected at each month-end rebalancing is the outstanding Treasury Bill that matures closest to, but not beyond, three months from the rebalancing date. BOFA MERRILL LYNCH 1-10 YEAR U.S. TREASURY INDEX is an unmanaged index of fixed-rate coupon bearing U.S. Treasury securities with a maturity range of 1 to 10 years. BOFA MERRILL LYNCH U.S. INFLATION-LINKED TREASURY INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, publicly issued, U.S. Treasury inflation-protected securities that have at least 1 year remaining to maturity and have $250 million or more of outstanding face value. BOFA MERRILL LYNCH U.S. TREASURY MASTER INDEX is an unmanaged index of fixed-rate coupon bearing U.S. Treasury securities with a maturity range of 1 to 30 years. BOFA MERRILL LYNCH 1-3 YEAR U.S. MUNICIPAL SECURITIES INDEX tracks the performance of the USD-denominated, fixed coupon, investment grade tax exempt debt publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. domestic market. The Index tracks securities with a remaining term to final maturity greater than or equal to 1 year and less than 3 years. BOFA MERRILL LYNCH 3-7 YEAR U.S. MUNICIPAL SECURITIES INDEX tracks the performance of the USD-denominated, fixed coupon, investment grade tax exempt debt publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. domestic market. The Index tracks securities with a remaining term to final maturity greater than or equal to 3 year and less than 7 years. BOFA MERRILL LYNCH 7-12 YEAR U.S. MUNICIPAL SECURITIES INDEX tracks the performance of the USD-denominated, fixed coupon, investment grade tax exempt debt publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. domestic market. The Index tracks securities with a remaining term to final maturity greater than or equal to 7 years and less than 12 years. STANDARD & POOR'S 500 INDEX (S&P 500(R)) is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. BARCLAYS CAPITAL U.S. CORPORATE HIGH-YIELD INDEX, BARCLAYS CAPITAL U.S. CORPORATE INVESTMENT GRADE INDEX, BARCLAYS CAPITAL U.S. GOVERNMENT 1-3 YEAR INDEX, BARCLAYS CAPITAL U.S. GOVERNMENT/CREDIT INDEX, BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT/CREDIT INDEX, BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT INDEX, BARCLAYS CAPITAL U.S. LONG GOVERNMENT INDEX, BARCLAYS CAPITAL U.S. MUNICIPAL INDEX, BARCLAYS CAPITAL U.S. SHORT/INTERMEDIATE MUNICIPAL INDEX, AND BARCLAYS CAPITAL U.S. TREASURY INDEX (C)BARCLAYS CAPITAL. S&P INDICES ARE A REGISTERED TRADEMARK OF STANDARD & POOR'S CORPORATION, INC., A DIVISION OF THE MCGRAW-HILL COMPANIES. 2
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE ============================================================================================================================ DEAR SHAREHOLDER: For the Funds' semi-annual period, July 1, 2009 through December 31, 2009, high-yield corporate, intermediate-term government, and short-term government bonds had results commensurate with their risk/return parameters, with Barclays Capital U.S. Corporate High-Yield Index, Barclays Capital U.S. Intermediate Government Index, and Barclays Capital U.S. Government 1-3 Year Index garnering returns of 21.3%, 1.2%, and 0.9% respectively. (Long-term government bonds are reviewed below.) For other fixed income investments, results were also in line with their credit/market risk. The Bank of America (BofA) Merrill Lynch 1-3 Year U.S. Municipal Securities Index, BofA Merrill Lynch 3-7 Year U.S. Municipal Securities Index, BofA Merrill Lynch 7-12 Year U.S. Municipal Securities Index, BofA Merrill Lynch U.S. 3-Month Treasury Bill Index, and BofA Merrill Lynch U.S. Inflation-Linked Treasury Index, returned 1.8%, 4.1%, 5.7%, 0.1%, and 5.0%, respectively. FIXED INCOME INVESTORS EXPERIENCED GAINS THAT WERE IN LINE WITH RISKS The economic recovery gathered pace during the final quarter of 2009 and with it, the fixed income markets began to confront the ugly truth that yield levels will likely move higher. Thus, a quarter that started with two reasonably positive months in October and November -- during which 5-Year Treasury yields fell by 30 basis points (0.30%) -- experienced a broad-based increase in rates during December. This reversed all of the gains and left longer-term Treasury yields higher by roughly 35-60 basis points (0.35-0.60%) for the quarter. Barclays Capital U.S. Long Government Index lost -0.6% during the Funds' semi-annual period (July 1, 2009-December 31, 2009). When all was said and done, the fixed income markets had produced a wide assortment of returns that related directly to risk. THE CHARACTERISTICS OF THIS ECONOMIC CYCLE WERE -- AND CONTINUE TO BE -- QUITE DIFFERENT Evidence of the economic recovery has become fairly widespread. Still, the characteristics of this cycle are already very different from traditional recoveries. This difference stems in large part from the unique difficulties that landed the economy in trouble in the first place, and the unorthodox tools implemented by the government to fix these problems. Traditionally, recoveries have been led by the strength of consumer spending. But so far, consumers have been conspicuously missing as the issues of de-leveraging (debt reduction), uncertain employment, and restricted credit have conspired to keep them from opening their wallets. The poor health of the banking industry, in general, has also been a major contributor to the recession. Here again we find uneven conditions that are divided largely by size. The government made a major effort to support the most systemically important institutions. With that effort having been largely completed, numerous regional and smaller institutions that did not qualify under the government's programs are still working to repair their balance sheets and maintain adequate capital ratios. The employment picture remains under pressure, but it has been quietly experiencing steady improvement since reaching a bottom in the first half of 2009. The unemployment rate finished the year at 10%, but many believe this understates the true magnitude of the problem. Other employment statistics, such as the "U-6" unemployment, consider important employment issues, such as workers who have been forced to take part-time positions or who have become frustrated searching for a job. 3
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ CORPORATE ISSUES, PARTICULARLY HIGH-YIELD BONDS, WERE STRONG PERFORMERS The fourth quarter of 2009 was again ruled by risk taking, and the corporate bond market was right in the center of this action. Excess returns, as measured by the Barclays Capital U.S. Corporate Investment Grade Index (Corporate Index), totaled 3.1% for the final quarter of the year and finished the year adding 22.3% above the Barclays Capital U.S. Treasury Index. During the early chapters of this rally, the financial services industry lagged. This shifted during the last half of 2009 as financials led the way. The financial services segment of the Corporate Index returned 12.3% during the six months ended December 31, 2009, as compared to a little over 8% for both industrial and utility sectors. The strong performance in the universe of investment grade bonds appears almost anemic when compared to the world of high yield bonds. Barclays Capital U.S. Corporate High Yield Index (High Yield Index) provided a return of 58.2% for 2009. At the height of the crisis, yield levels well exceeded 20% for this group of securities. However, as the turnaround in financial markets which began in March 2009 unfolded throughout the year, yields tumbled. By the end of 2009, the yield on the High Yield Index had fallen to 9.1%. MUNICIPALS RALLIED LAST YEAR, BUT BUDGET PROBLEMS LOOM Rebounding from the huge declines experienced in late 2008, the municipal market had an extraordinarily strong 2009. Repeating this will be tough, as current yield ratios relative to Treasuries are close to their lowest levels. In addition, state and municipal finances will continue to experience the lag effects that will make for another grueling budget season for many legislatures and executive offices. Lower rated investment grade municipal credits continue to offer better value, continuing another 2009 theme. Again, security selection will be critical. For many states and municipalities, budget problems are likely to persist for several years, especially given the likelihood of a slow national economic recovery. On a short-term basis, the federal government's economic stimulus payments to the states have provided crucial buffering. But that is only a temporary stop gap. Since tax collection trends lag overall economic fluctuations, the public sector's collective balance sheets at the state and local levels will remain in the doldrums, at least through the next year and, likely even once the private sector moves back into growth mode. Credit research remains extremely important for investors trying to navigate these waters. WE EXPECT THE FED TO BEGIN PUSHING UP RATES LATER IN 2010 Although a rate increase is not supported by anything the Fed is saying or doing right now, we expect this outcome, based largely on the view that the recovery in the labor markets may finally achieve job growth sufficient to start trimming the unemployment rate during the second half of the year. However, the Fed's exit strategy remains unclear. Given all of the programs it has implemented, it has a lot more tools with which to work. Raising rates could be done early or late in the process. Furthermore, the Fed may not be sure exactly how it will remove the excess liquidity, which adds to the uncertainty. LOOKING AHEAD Active management and meticulous credit research will be even more critical during the next six months of the Funds' fiscal year, and indeed, all of 2010. Rising rates present a looming challenge and with credit spreads much closer to normal, managing fixed income securities will not be without its headwinds -- although they are ones we are prepared to meet. 4
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE WILMINGTON SHORT/INTERMEDIATE-TERM BOND AND BROAD MARKET BOND FUNDS The following comments cover the Wilmington Short/Intermediate-Term Bond Fund and the Wilmington Broad Market Bond Fund (the "Funds"). The Wilmington Short/Intermediate-Term Bond Fund ("Short/Intermediate Fund") and Wilmington Broad Market Bond Fund ("Broad Market Fund") are designed to give shareholders broad exposure to the dynamics of the taxable fixed income bond market with a stable flow of income and minimization of risk. To do so, the investment adviser applies a disciplined and systematic investment process to actively manage a core portfolio of investment grade notes and bonds from a wide range of taxable market sectors. The major difference between the Short/Intermediate Fund and Broad Market Fund is the exposure to interest rate risk. The Short/Intermediate Fund has the lower risk exposure to interest rates and finished the semi-annual period with an effective duration of 3.98 years. The Broad Market Fund had an effective duration of 5.20 years at the same point in time. As the six-month period ended December 31, 2009 began, investors showered a lot of love on the financial markets. During the third quarter of 2009, most markets produced sizeable rewards. The equity markets spawned double digit results as the bull market from the March 9, 2009 lows extended with historic fervor. With equities recovering, bonds would normally be considered something to avoid but this market bucked expectations as sizeable positive returns were available here as well. Even the U.S. Treasury market, the often-stodgy GRANDE DAME of the bond market, found enough affection to produce a total return for the three months ended September 30, 2009 that exceeded two percent (2.13%), as measured by the BofA Merrill Lynch U.S. Treasury Master Index. The Federal Reserve's "Zero Rate Policy" has assured investors that they will receive very little return for taking almost no risk. What the policy did not assure was whether investors would receive any return for actually taking risk. However, the markets answered this with a resounding "yes" as risky assets gained favor and moved to the top of the quarterly leader board. Behind much of the momentum for the quarter ended September 30th were economic statistics that indicated that the economy was moving from its downward trajectory towards a more positive direction. The economic recovery began to take hold outside of the United States early in 2009. Economies in Asia, Germany, France, Brazil and India all found stability and began to turn the corner. For the most part, these countries were not victimized by the dramatic problems in credit which caused major dislocations in the banking system and forced deleveraging. In the United States, the areas where government assistance was most evident helped to lead the way. The most visible was the "Cash for Clunkers" program which lit a brief fire under auto sales. In early 2008, vehicle sales were averaging about 16 million units per year but began to collapse as the credit crisis took hold. The collapse of Lehman Brothers accelerated the decline so that by early 2009, annual sales were well below a rate of 10 million units per year. The "Cash for Clunkers" program provided car buyers with a government provided subsidy to replace older, gas guzzling vehicles with new, more fuel efficient models. Sales moved up to 11 million annual units before peaking in August at just over 14 million units annually. The program was fed in part from existing inventories but production needed to be ramped up to meet the demand. This helped to push manufacturing surveys such as the Chicago Purchasing Managers survey to readings well above 50, indicating economic expansion, during the quarter ended December 31, 2009. 5
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ The housing market showed signs of stabilizing for some time but perhaps the best news came from the Case-Shiller Housing Price data which showed prices beginning to move up. Again, government support has been important with an $8,000 tax credit for first time home buyers. Transaction volumes as measured by existing home sales bottomed early in 2009 at around 4.5 million homes but they have moved from these lows, fairly consistently pushing above 5 million units. Perhaps most importantly, the supply of homes on the market shrank to an 8.5 months supply by September 2009, down from a peak of above 11 months. This is a considerable improvement even if it is well below the normal market average of between 4 to 5 months. New home sales dropped by 76% from their peak in July 2005 before bottoming at only 329 thousand new homes in early 2009. Like existing home sales, new homes sales increased steadily throughout most of 2009. For the fixed income markets, the positive performance for the third quarter of calendar year 2009 began with improvements in the Treasury market. The yield curve experienced a modest bull flattening trend as Thirty-Year Treasury Notes lost 26 basis points of yield while the Two-Year Note shed 16 bps. The rationale for this market movement was not obvious relative to the fundamentals. With the economy demonstrating an improved tone, the bond market and the Treasury market in particular should expect to see yields move higher. Furthermore, with the large quantity of Treasury issuance taking place, the market reactions seem even more out of synch with expectations. Several factors however came into play. First, inflation expectations are virtually nil and if anything, deflation concerns may be lingering for many investors. The multitude of government stimulus programs has many people expecting inflation to move higher but the extraordinary excess capacity is keeping this problem well bottled up. Second, while the economy perked up during the quarter ended September 30th, we do not expect the rate of growth to hold. While the economy is likely to gain ground in the future, it is likely to be well below trend. We believe this pushes any inflation concerns out even further into the future. Finally, the supply of new Treasuries hitting the market has found strong support from foreign buyers. From data collected by the Federal Reserve and reported by BCA Research, foreign buyers have accumulated 47% of the change in Treasury inventories from the middle of 2008 until the middle of 2009. In dollar terms this amounts to about $900 billion. The Chinese, the biggest buyer of our Treasury debt, are caught between two relatively poor options. They can stand aside for these auctions and risk sparking a huge collapse of the dollar and a rise in rates which would cause their existing holdings to lose value while putting their export driven economy into a non-competitive position or they can pony up the vast new sums required to support the market. Ultimately, staying in power is their primary motivation so their political calculations favor keeping the Treasury market well supported. Outside of the Treasury market, the play for risky assets really took center stage. The corporate bond market, both investment grade and high yield, followed up its strong performance for the quarter ended June 30th with an impressive encore. Yield spreads between corporate bonds and the Treasury market continued to narrow. Barclays Capital U.S. Corporate Investment Grade Index started the quarter with spreads at an average of 317 bps. By the end of September, this had narrowed by 93 basis points which enabled this part of the market to post excess returns over similar duration Treasury securities of 556 basis points (5.56%). The big winner in the quarter ended September 30th was the financial sector which had lagged the tightening moves recorded earlier in the year. Investment grade financial institutions returned nearly 10% during the quarter according to Barclays Capital. Earnings for the quarter ended June 30th were generally better than expected in large part due to the profound cost cutting achieved by businesses in the wake of the Lehman Brothers collapse. This provided a strong foundation and helped to remove all concerns over systemic risk. The performance in the high yield bond market was even more impressive. According to Barclays Capital U.S. Corporate High-Yield Index, the average spread tightened by about 6
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ 220 basis points which allowed the market a total return of 12.3% for the quarter bringing year-to-date results up to a stunning 58.2%! Money flowed into these two markets at a very rapid clip helping to support significant new issuance. In the week following Labor Day, over $40 billion in new investment grade bonds were brought to market. The quarter ended December 31st was again ruled by risk taking and the corporate bond market was right in the center of this action. Excess returns as measured by the Barclays Capital U.S. Corporate Investment Grade Index totaled 3.1% for the final quarter of 2009 and finished the year adding 22.7% above the Treasury market. During the early chapters of this credit rally, the financial services industry lagged behind but this shifted during the last half of 2009 as financials led the way. The financial services segment of the Barclays Capital U.S. Corporate Investment Grade Index returned 12.3% during the second half of 2009, as compared to a little over 8% for both industrial and utility issuers. Even with this strong performance, spread levels remain elevated for the financial sector when compared to the other two major sectors. Additional spread tightening is likely as the markets continue to normalize but the momentum is likely to slow as it will take time for the remaining risks, many of which are centered in loan portfolios, to be fully addressed. Under these evolving circumstances, both Funds performed well adding value for shareholders over the six-month period. WILMINGTON SHORT/INTERMEDIATE FUND The Institutional Shares of the Short/Intermediate Fund (the "Fund") performed well over the six-month period ended December 31, 2009 with a total return of 3.76%. The total return exceeded the benchmark Barclays Capital U.S. Intermediate Government/Credit Index which had a total return of 3.57% over the same period. The Fund performed well against its Lipper Short/Intermediate Investment Grade Debt Funds universe over the longer-term periods but lagged its Lipper peer group universe for the one-year period. The Fund placed in the 75th percentile out of 150 funds for the one-year period, in the 6th percentile out of 134 funds for the 3-year period, in the 6th percentile out of 128 funds for the 5-year period, and in the 5th percentile out of 71 funds for the 10-year period, based on total returns as of December 31, 2009. The primary challenge in managing the Fund during the recent period has been reversing our positioning favoring lower credit risk exposure and moving towards adding credit risk. This is a process that began towards the end of the previous fiscal year, June 30, 2009, and continued in earnest during the most recent six months. Looking back to December 31, 2008, the Fund had 42.1% of its assets exposed to the corporate bond market. By June 30, 2009 this exposure had been increased to 47.6% and by the end of the semi-annual period on December 31, 2009 this exposure had reached 52.8%. Efforts to add to the credit risk exposure are also shown in our allocations to BBB rated and below securities. At the start of the semi-annual period, this amounted to 22.5% of the Fund's investments. By the end of December 2009, this allocation was up to 32.9%. Performance against the Fund's benchmark has been very successful but we have not been as successful against our Lipper peer group during the past six months. This largely reflects events that have transpired with the Fund's peers and does not reflect any change in the advisor's portfolio management techniques. During the heart of the credit crisis in 2008 and early 2009, many of the Fund's peers were hurt by their holdings of higher risk assets such ABS Residential Mortgages or high-yield securities. Markets for these securities became very illiquid and pricing was likely done on a very conservative basis. As a result, peer funds were not able to sell these instruments and wound up holding them into 2009 when 7
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ risky assets returned to favor and performance picked up considerably. Having avoided these credit exposures, we did not experience the boomerang effects that pushed up peer group performance. Many of these assets, particularly ABS Residential Mortgage securities performed well in 2009 but they may also contain embedded losses that will never be recovered. We believe that peer funds achieved short term benefits but will be limited over the longer run. We believe that this is confirmed by our longer term peer group performance which remains strong. The following performance table compares the Short/Intermediate Fund, with that of the Barclays Capital U.S. Intermediate Government/Credit Index and the BofA Merrill Lynch 1-10 Year U.S. Treasury Index. - ---------------------------------------------------------------------------------------------------------------------------- SHORT/INTERMEDIATE-TERM BOND FUND Average Annual Total Returns ------------------------------------------ SIX SINCE MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION(1) ------ ------ ------- -------- ------------ Short/Intermediate-Term Bond Fund -- Institutional Shares 3.76% 6.58% 5.15% 5.94% NA -- A Shares (with sales charge)(2) 1.58% 4.22% 4.46% NA 3.98% -- A Shares at NAV 3.64% 6.34% 4.89% NA 4.32% Barclays Capital U.S. Intermediate Government/Credit Index 3.57% 5.24% 4.66% 5.93% 4.43% BofA Merrill Lynch 1-10 Year U.S. Treasury Index 1.05% -1.41% 4.68% 5.45% 4.23% - ---------- FUND EXPENSE RATIOS(3): INSTITUTIONAL SHARES - 0.61%, A SHARES - 0.86% - ---------------------------------------------------------------------------------------------------------------------------- - ---------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. TOTAL RETURNS SHOWN IN THE TABLE ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. TOTAL RETURNS WOULD BE LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN WAIVED AND/OR REIMBURSED. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY, IS NOT A DEPOSIT OF OR OTHER OBLIGATION OF OR GUARANTEED BY WILMINGTON TRUST OR ANY OTHER BANK OR ENTITY, AND IS SUBJECT TO RISKS INCLUDING A POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. (1) SINCE INCEPTION RETURN IS NOT PROVIDED FOR SHARE CLASSES THAT HAVE BEEN IN EXISTENCE FOR MORE THAN TEN YEARS. THE SINCE INCEPTION RETURNS SHOWN FOR A SHARES ARE FOR THE PERIOD OCTOBER 7, 2003 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 2009. THE SINCE INCEPTION RETURNS PROVIDED FOR THE INDICES ARE FOR THE PERIOD OCTOBER 31, 2003 THROUGH DECEMBER 31, 2009. (2) PERFORMANCE REFLECTS THE DEDUCTION OF THE 2.00% MAXIMUM FRONT-END SALES CHARGE. (3) THE EXPENSE RATIOS SHOWN ARE FROM THE MOST RECENT PROSPECTUS DATED NOVEMBER 1, 2009 AND MAY DIFFER FROM THE EXPENSE RATIOS DISCLOSED IN THE FINANCIAL HIGHLIGHTS TABLE IN THIS REPORT. 8
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ WILMINGTON BROAD MARKET BOND FUND The Institutional Shares of the Broad Market Bond Fund (the "Fund") performed well over the six-month period ended December 31, 2009 with a total return of 5.37%. The total return exceeded the return for the benchmark Barclays Capital U.S. Government/Credit Index which had a total return of 3.94% over the same period. The Fund performed well against its Lipper Intermediate Investment Grade Debt Funds universe over the longer term periods but lagged its peer group for the one-year period ended December 31, 2009. The Fund placed in the 83rd percentile out of 549 funds for the one-year period, in the 18th percentile out of 458 funds for the 3-year period, in the 16th percentile out of 395 funds for the 5-year period, and in the 14th percentile out of 219 funds for the 10-year period, based on total returns as of December 31, 2009. The primary challenge in managing the Fund during the recent six-month period has been reversing our positioning favoring lower credit risk exposure and moving towards adding credit risk. This is a process that began towards the end of the previous fiscal year, June 30, 2009, and continued in earnest during the most recent six months. Looking back to December 31, 2008, the Fund had 44.7% of its assets exposed to the corporate bond market. By June 30, 2009 this exposure had been increased to 60.8% and by the end of the semi-annual period on December 31, 2009 this exposure had reached 66.4%. Efforts to add to the credit risk exposure are also shown in our allocations to BBB rated and below securities. At the start of the semi-annual period, this amounted to 32.4% of the Fund. By the end of December 2009, this allocation was up to 46.0%. Performance against our benchmark has been very successful but we have not been as successful against our Lipper peer group during the past six months. This largely reflects events that have transpired with our peers and does not reflect any change in our portfolio management techniques. During the heart of the credit crisis in 2008 and early 2009, many of our peer funds were hurt by their holdings of higher risk assets such ABS Residential Mortgages or high-yield securities. Markets for these securities became very illiquid and pricing was likely done on a very conservative basis. As a result, peer funds were not able to sell these instruments and wound up holding them into 2009 when risky assets returned to favor and performance picked up considerably. Having avoided these credit exposures, we did not experience the boomerang effects that pushed up peer group performance. Many of these assets, particularly ABS Residential Mortgage securities performed well in 2009 but they may also contain embedded losses that will never be recovered. We believe that peer funds achieved short-term benefits but will be limited over the longer run. We believe that this is confirmed by our longer term peer group performance which remains strong. The following graph and performance table compares the performance of the Broad Market Fund with that of the Barclays Capital U.S. Government/Credit Index and the BofA Merrill Lynch U.S. Treasury Master Index. 9
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ - ---------------------------------------------------------------------------------------------------------------------------- BROAD MARKET BOND FUND Average Annual Total Returns ------------------------------------------ SIX SINCE MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION(1) ------ ------ ------- -------- ------------ Broad Market Bond Fund -- Institutional Shares 5.37% 7.04% 5.32% 6.37% NA -- A Shares (with sales charge)(2) 3.16% 4.73% NA NA 5.41% -- A Shares at NAV 5.24% 6.83% NA NA 5.94% Barclays Capital U.S. Government/Credit Index 3.94% 4.52% 4.71% 6.34% 5.30% BofA Merrill Lynch U.S. Treasury Master Index 0.78% -3.72% 4.88% 6.13% 5.41% - ---------- FUND EXPENSE RATIOS(3): INSTITUTIONAL SHARES - 0.72%, A SHARES - 0.97% - ---------------------------------------------------------------------------------------------------------------------------- - ---------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. TOTAL RETURNS SHOWN IN THE TABLE ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. TOTAL RETURNS WOULD BE LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN WAIVED AND/OR REIMBURSED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY, IS NOT A DEPOSIT OF OR OTHER OBLIGATION OF OR GUARANTEED BY WILMINGTON TRUST OR ANY OTHER BANK OR ENTITY, AND IS SUBJECT TO RISKS INCLUDING A POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. (1) SINCE INCEPTION RETURN IS NOT PROVIDED FOR SHARE CLASSES THAT HAVE BEEN IN EXISTENCE FOR MORE THAN TEN YEARS. THE SINCE INCEPTION RETURNS SHOWN FOR THE A SHARES ARE FOR THE PERIOD DECEMBER 20, 2005 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 2009. THE SINCE INCEPTION RETURNS PROVIDED FOR THE INDICES ARE FOR THE PERIOD DECEMBER 31, 2005 THROUGH DECEMBER 31, 2009. (2) PERFORMANCE REFLECTS THE DEDUCTION OF THE 2.00% MAXIMUM FRONT-END SALES CHARGE. (3) THE EXPENSE RATIOS SHOWN ARE FROM THE MOST RECENT PROSPECTUS DATED NOVEMBER 1, 2009 AND MAY DIFFER FROM THE EXPENSE RATIOS DISCLOSED IN THE FINANCIAL HIGHLIGHTS TABLE IN THIS REPORT. 10
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ WILMINGTON MUNICIPAL BOND FUND The Wilmington Municipal Bond Fund (the "Fund") is an intermediate, high quality fund designed to produce a high level of income that is exempt from Federal income taxes while seeking preservation of capital. The basic investment strategy is to identify and purchase the undervalued sectors of the municipal market. The Fund will normally be fully invested with an average maturity in the 5 to 10 year range. On December 31, 2009, the Fund had an average effective maturity of 5.70 years, an effective duration of 5.74 years, and an average coupon of 4.93%, versus the target Barclays Capital U.S. Short/Intermediate Municipal Index, which had an average effective maturity of 4.13 years, a duration of 3.98 years, and an average coupon of 5.01%. Performance of the Fund's Institutional Shares for the semi-annual period ending December 31, 2009 was 4.90%, versus a 3.57% return for the Barclays Capital U.S. Short/Intermediate Municipal Index, and 5.12% for its Lipper Intermediate Municipal Debt Funds peer group. The Fund has performed well against its Lipper peer group placing in the 33rd percentile out of 157 funds for the one-year period, in the 33rd percentile out of 142 funds for the 3-year period, in the 39th percentile out of 125 funds for the 5-year period, and in the 66th percentile out of 74 funds for the 10-year period, based on total returns as of December 31, 2009. During the six-month period, the municipal market experienced two dramatically different quarters. MMD AAA-RATED MUNICIPAL YIELD CURVE (PERFORMANCE GRAPH) 6/30/09 12/31/09 ------- -------- 0.57 0.28 0.94 0.56 1.23 0.83 1.67 1.13 2.07 1.55 2.34 1.99 2.6 2.35 2.86 2.6 3.06 2.82 3.23 2.98 3.41 3.06 3.53 3.12 3.64 3.18 3.74 3.25 3.83 3.32 3.91 3.39 3.99 3.47 4.08 3.54 4.17 3.61 4.26 3.68 11
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ The theme for the first three months of the period was greed replacing the fear of the first half of 2009 as retail investors sought higher returns wherever available. The period started in July with retail investors moving from money market funds, which were paying essentially a zero return, into short-term municipal bonds and mutual funds. As the inflow of cash drove down short-term yields, investors then moved farther out on the maturity spectrum into intermediate-term funds and then finally into long-term funds. The final shift was going down the quality spectrum into lower-quality investment grade and high-yield municipal bond funds. Further compounding the problem was a lack of new supply of municipal securities, as roughly one third of the new municipal bond deals were coming as taxable "Build America Bonds". With 20-year municipal bond yields at 40+ year lows, as measured by the BOND BUYER, it was fairly obvious that a strong last half for the period was highly unlikely unless taxable bond values plunged from their current low yield levels to facilitate the move. As anticipated, the last half of the six-month period generated mixed performance for municipal bondholders as a selloff in long-term maturity municipal bonds followed the overzealous rally during the first three months. Bonds maturing within 5 years rallied during the 4th quarter of 2009, while prices fell for Aaa-rated bonds maturing past 6 years. The selloff trend was partially offset for long-term bonds as tighter yield spreads in select A- and Baa-rated securities offset the increase in rates. As a comparison, the Barclays Capital U.S. Municipal Index, the aggregate index for the entire municipal market, generated a -0.96% return for the 4th quarter versus +0.11% for the Barclays Capital U.S. Short/Intermediate Municipal Index, an index for 1 to 10-year investment grade municipals. While the Fund's strategy of lower-quality investment grade securities in the 12 to 15-year maturity sector helped generate excellent returns, another driver of performance was the Fund's self-created large cash position of over $15 million during the rally that occurred during the first half of semi-annual period. This large cash position negatively impacted performance during the three-month period ended September 30, but the adviser anticipated better buying opportunities to redeploy the cash out on the maturity spectrum during the 4th quarter as supply increased and record retail demand abated. The situation played out as expected and we believe that the Fund's portfolio performance should benefit in the future since the Fund used the negative return during the 4th quarter to buy credits at attractive prices that were being shunned by retail investors. Issuers such as California, Alabama, and various lower-rated healthcare credits were offering extremely attractive risk-adjusted yields for investors willing to look past the headline risks associated with each story and do the necessary research to determine the actual risks to bondholders. By quarter-end, the Fund had reduced its cash position from $15 million to roughly $6.5 million. The Fund further used this quarter to sell richly valued 3 to 7-year maturity high quality issues to swap into 1 to 3-year maturity and 10 to 15-year maturity credits. 12
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ - ---------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BOND FUND Average Annual Total Returns ------------------------------------------ SIX SINCE MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION(1) ------ ------ ------- -------- ------------ Municipal Bond Fund -- Institutional Shares 4.90% 11.99% 3.60% 4.43% NA -- A Shares (with sales charge)(2) 2.65% 9.44% NA NA 3.42% -- A Shares at NAV 4.76% 11.71% NA NA 3.94% Barclays Capital U.S. Short/Intermediate Municipal Index 3.57% 6.61% 4.24% 4.95% 4.94% - ---------- FUND EXPENSE RATIOS(3): INSTITUTIONAL SHARES - 0.63%, A SHARES - 0.88% - ---------------------------------------------------------------------------------------------------------------------------- - ---------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. TOTAL RETURNS SHOWN IN THE TABLE ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. TOTAL RETURNS WOULD BE LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN WAIVED AND/OR REIMBURSED. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY, IS NOT A DEPOSIT OF OR OTHER OBLIGATION OF OR GUARANTEED BY WILMINGTON TRUST OR ANY OTHER BANK OR ENTITY, AND IS SUBJECT TO RISKS INCLUDING A POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. (1) SINCE INCEPTION RETURN IS NOT PROVIDED FOR SHARE CLASSES THAT HAVE BEEN IN EXISTENCE FOR MORE THAN TEN YEARS. THE SINCE INCEPTION RETURNS SHOWN FOR A SHARES ARE FOR THE PERIOD DECEMBER 20, 2005 (COMMENCEMENT OF OPERATIONS) THROUGH DECEMBER 31, 2009. THE SINCE INCEPTION RETURNS PROVIDED FOR THE INDEX ARE FOR THE PERIOD DECEMBER 31, 2005 THROUGH DECEMBER 31, 2009. (2) PERFORMANCE REFLECTS THE DEDUCTION OF THE 2.00% MAXIMUM FRONT-END SALES CHARGE. (3) THE EXPENSE RATIOS SHOWN ARE FROM THE MOST RECENT PROSPECTUS DATED NOVEMBER 1, 2009 AND MAY DIFFER FROM THE EXPENSE RATIOS DISCLOSED IN THE FINANCIAL HIGHLIGHTS TABLE IN THIS REPORT. 13
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ We invite your comments and questions and thank you for your investment in the Wilmington Fixed Income Funds. We look forward to reviewing our investment outlook and strategy with you in our next report to shareholders. Sincerely, /s/ John J. Kelley John J. Kelley President January 29, 2010 YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUNDS CAREFULLY BEFORE INVESTING. A PROSPECTUS WITH THIS AND OTHER INFORMATION MAY BE OBTAINED BY CALLING 800-336-9970 OR VISITING THE FUNDS' WEBSITE AT www.wilmingtonfunds.com. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING. MR. KELLEY'S COMMENTS REFLECT THE INVESTMENT ADVISER'S VIEWS GENERALLY REGARDING THE MARKET AND THE ECONOMY, AND ARE COMPILED FROM THE INVESTMENT ADVISER'S RESEARCH. THESE COMMENTS REFLECT OPINIONS AS OF THE DATE OF THIS LETTER AND ARE SUBJECT TO CHANGE AT ANY TIME. DISTRIBUTED BY PROFESSIONAL FUNDS DISTRIBUTOR, LLC. SEE FINANCIAL HIGHLIGHTS. 14
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- EXPENSE DISCLOSURE (UNAUDITED) ============================================================================================================================ DISCLOSURE OF FUND EXPENSES The following Expense Tables are shown so that you can understand the impact of fees on your investment. All mutual funds have operating expenses. As a shareholder of a Fund, you incur ongoing costs, including management fees and other Fund expenses. A Fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The Expense Tables below illustrate your Fund's costs in two ways. - ACTUAL FUND RETURN AND EXPENSES. The first line of each table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during the period. - HYPOTHETICAL 5% RETURN AND EXPENSES. The second line of each table below provides information about hypothetical account values and hypothetical expenses based on the 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 the 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 tables 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, if any. Therefore, the second line of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The "Annualized Expense Ratio" reflects the actual expenses for the period indicated. 15
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- EXPENSE DISCLOSURE (UNAUDITED) -- CONTINUED ============================================================================================================================ FOR THE PERIOD JULY 1, 2009 TO DECEMBER 31, 2009 EXPENSE TABLES BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 7/1/09 12/31/09 RATIO PERIOD* ---------- --------- ---------- -------- SHORT/INTERMEDIATE-TERM BOND FUND - -- INSTITUTIONAL SHARES Actual Fund Return ........................................................ $1,000.00 $1,037.60 0.57% $2.93 Hypothetical 5% Return Before Expenses .................................... 1,000.00 1,022.30 0.57 2.91 SHORT/INTERMEDIATE-TERM BOND FUND - -- A SHARES Actual Fund Return ........................................................ $1,000.00 $1,036.40 0.82% $4.21 Hypothetical 5% Return Before Expenses .................................... 1,000.00 1,021.02 0.82 4.19 BROAD MARKET BOND FUND - -- INSTITUTIONAL SHARES Actual Fund Return ........................................................ $1,000.00 $1,053.70 0.73% $3.78 Hypothetical 5% Return Before Expenses .................................... 1,000.00 1,021.48 0.73 3.73 BROAD MARKET BOND FUND - -- A SHARES Actual Fund Return ........................................................ $1,000.00 $1,052.40 0.98% $5.07 Hypothetical 5% Return Before Expenses .................................... 1,000.00 1,020.20 0.98 5.00 MUNICIPAL BOND FUND - -- INSTITUTIONAL SHARES Actual Fund Return ........................................................ $1,000.00 $1,049.00 0.60% $3.10 Hypothetical 5% Return Before Expenses .................................... 1,000.00 1,022.15 0.60 3.06 MUNICIPAL BOND FUND - -- A SHARES Actual Fund Return ........................................................ $1,000.00 $1,047.60 0.85% $4.39 Hypothetical 5% Return Before Expenses .................................... 1,000.00 1,020.87 0.85 4.34 * Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365. 16
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- DISCLOSURE OF PORTFOLIO HOLDINGS (UNAUDITED) ============================================================================================================================ PORTFOLIO HOLDINGS DECEMBER 31, 2009 The following tables present a summary of the portfolio holdings of each of the Wilmington Fixed Income Funds as a percentage of their total investments, excluding short-term investments held as collateral for loaned securities. SHORT/INTERMEDIATE-TERM BOND FUND BROAD MARKET BOND FUND Sector Sector --------- -------- Corporate Bonds .................................... 52.8% Corporate Bonds .................................... 66.4% U.S. Agency Obligations ............................ 23.6% U.S. Agency Obligations ............................ 13.5% U.S. Treasury Obligations .......................... 18.1% U.S. Treasury Obligations .......................... 11.4% Mortgage-Backed Securities ......................... 4.2% Mortgage-Backed Securities ......................... 5.6% Municipal Bonds .................................... 0.4% Municipal Bonds .................................... 1.2% Short-Term Investments ............................. 0.9% Preferred Stock .................................... 0.4% ----- Short-Term Investments ............................. 1.5% 100.0% ------ ===== 100.0% ====== Quality Quality --------- --------- Treasury ........................................... 18.1% Treasury ........................................... 11.4% Agency ............................................. 23.6% Agency ............................................. 13.5% AAA ................................................ 4.1% AAA ................................................ 2.3% AA ................................................. 7.0% AA ................................................. 5.8% A .................................................. 15.9% A .................................................. 25.8% BBB ................................................ 24.2% BBB ................................................ 32.1% Other .............................................. 7.1% Other .............................................. 9.1% ----- ----- 100.0% 100.0% ===== ===== 17
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- DISCLOSURE OF PORTFOLIO HOLDINGS (UNAUDITED) -- CONTINUED ============================================================================================================================ MUNICIPAL BOND FUND States Quality -------- --------- Municipal Bonds AAA ................................................. 6.0% California ...................................... 18.5% AA .................................................. 10.5% Texas ........................................... 10.0% A ................................................... 43.5% Alabama ......................................... 8.7% BBB ................................................. 16.9% New York ........................................ 6.6% Other ............................................... 23.1% Washington ...................................... 6.6% ----- Pennsylvania .................................... 6.1% 100.0% Illinois ........................................ 5.2% ===== New Jersey ...................................... 4.0% Indiana ......................................... 3.6% Ohio ............................................ 3.2% Colorado ........................................ 3.0% Other ........................................... 19.9% Short-Term Investments ............................. 4.6% ------ 100.0% ===== DISCLOSURE OF PORTFOLIO HOLDINGS The Trust files a complete schedule of investments with the SEC for its first and third fiscal quarters on Form N-Q. Form N-Q is available, without charge, by visiting the SEC's website at HTTP://WWW.SEC.GOV, or it may be viewed and copied at the SEC's Public Reference Room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the Public Reference Room). 18
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- SHORT/INTERMEDIATE-TERM BOND FUND - --------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ----------- CORPORATE BONDS -- 52.5% CONSUMER DISCRETIONARY -- 5.3% Anheuser-Busch InBev Worldwide, Inc. 144A, 7.75%, 01/15/19@ .............................................................. Baa2, BBB+ $2,000,000 $ 2,341,590 Comcast Cable Communications Holdings, Inc., 8.38%, 03/15/13 ............................................................... Baa2, BBB+ 1,765,000 2,034,510 Comcast Corp., 5.70%, 07/01/19 .................................................. Baa1, BBB+ 1,100,000 1,153,949 Royal Caribbean Cruises Ltd., 7.00%, 06/15/13 ................................... Ba3, BB- 1,200,000 1,197,000 Time Warner, Inc., 5.50%, 11/15/11 .............................................. Baa2, BBB 1,250,000 1,327,096 Time Warner Entertainment Co., LP, 8.88%, 10/01/12 ............................................................... Baa2, BBB 1,185,000 1,360,240 Time Warner Entertainment Co., LP, 8.38%, 03/15/23 ............................................................... Baa2, BBB 175,000 207,304 ----------- 9,621,689 ----------- CONSUMER STAPLES -- 0.5% Kraft Foods, Inc., 6.13%, 02/01/18 .............................................. Baa2, A- 800,000 841,234 ----------- 841,234 ----------- ENERGY -- 5.6% Anadarko Petroleum Corp., 8.70%, 03/15/19 ....................................... Baa3, BBB- 1,250,000 1,554,895 Chesapeake Energy Corp., 9.50%, 02/15/15 ........................................ Ba3, BB 625,000 685,937 ConocoPhillips, 9.38%, 02/15/11 ................................................. A1, A 750,000 811,585 Kinder Morgan Energy Partners LP, 7.13%, 03/15/12 ............................................................... Baa2, BBB 2,250,000 2,453,530 Sunoco, Inc., 9.63%, 04/15/15 ................................................... Baa2, BBB- 1,200,000 1,428,109 Transocean, Inc., 5.25%, 03/15/13 ............................................... Baa2, BBB+ 750,000 803,729 Valero Energy Corp., 4.75%, 04/01/14 ............................................ Baa3, BBB 1,845,000 1,883,891 Weatherford International Ltd., 5.15%, 03/15/13 ................................. Baa1, BBB+ 450,000 471,253 ----------- 10,092,929 ----------- FINANCIALS -- 15.7% American Express Co., 4.88%, 07/15/13 ........................................... A3, BBB+ 1,500,000 1,565,070 American Honda Finance Corp. 144A, 4.63%, 04/02/13@ .............................................................. A1, A+ 1,500,000 1,541,175 Bank of America Corp., 7.63%, 06/01/19 .......................................... A2, A 750,000 867,635 Bank of New York Mellon Corp. (The), 4.95%, 11/01/12 ............................................................... Aa2, AA- 1,900,000 2,046,260 Bank One Corp., 8.00%, 04/29/27 ................................................. Aa3, A 265,000 320,587 BlackRock, Inc., 5.00%, 12/10/19 ................................................ A1, A+ 1,400,000 1,375,753 BP Capital Markets PLC, 5.25%, 11/07/13 ......................................... Aa1, AA 1,300,000 1,415,998 Caterpillar Financial Services Corp., 5.75%, 02/15/12 ............................................................... A2, A 1,750,000 1,888,941 Devon Financing Corp., 6.88%, 09/30/11 .......................................... Baa1, BBB+ 1,465,000 1,591,452 Ford Motor Credit Co., LLC, 7.88%, 06/15/10 ..................................... B1, B- 1,350,000 1,370,394 General Electric Capital Corp., 3.75%, 11/14/14 ................................. Aa2, AA+ 1,000,000 998,254 The accompanying notes are an integral part of the financial statements. 19
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- SHORT/INTERMEDIATE-TERM BOND FUND - --------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ----------- CORPORATE BONDS -- (CONTINUED) FINANCIALS -- (CONTINUED) Goldman Sachs Group, Inc. (The), 7.50%, 02/15/19 ............................................................... A1, A $1,500,000 $ 1,748,705 John Deere Capital Corp., 4.90%, 09/09/13 ....................................... A2, A 900,000 967,468 JPMorgan Chase & Co., 4.65%, 06/01/14 ........................................... Aa3, A+ 1,250,000 1,316,799 MetLife, Inc., 5.00%, 06/15/15 .................................................. A2, A- 730,000 767,799 Morgan Stanley, 4.75%, 04/01/14 ................................................. A1, A- 1,750,000 1,760,057 Simon Property Group LP, 5.75%, 12/01/15 ........................................ A3, A- 1,000,000 1,019,752 SLM Corp., 4.50%, 07/26/10 ...................................................... Baa1, BBB- 900,000 896,776 Swiss Bank Corp., 7.38%, 06/15/17 ............................................... Aa1, A 700,000 735,363 Textron Financial Corp., 5.13%, 02/03/11 ........................................ Baa3, BB+ 1,550,000 1,564,711 Wachovia Corp., 7.57%, 08/01/26++ ............................................... A1, A+ 175,000 189,832 Wells Fargo & Co., 5.13%, 09/01/12 .............................................. Aa2, A+ 348,000 365,897 Wells Fargo Financial, Inc., 5.50%, 08/01/12 .................................... Aa1, AA- 615,000 658,256 Westpac Banking Corp., 4.88%, 11/19/19 .......................................... Aa1, AA 1,500,000 1,480,508 ----------- 28,453,442 ----------- HEALTH CARE -- 3.1% Merck & Co., Inc., 4.38%, 02/15/13 .............................................. Aa3, AA- 700,000 736,947 Pfizer, Inc., 5.35%, 03/15/15 ................................................... Aa2, AA 1,100,000 1,202,195 Roche Holdings, Inc. 144A, 4.50%, 03/01/12@ ..................................... A2, AA- 2,000,000 2,100,634 Schering-Plough Corp., 5.30%, 12/01/13 .......................................... Baa1, AA- 875,000 961,675 United Health Group, Inc., 6.00%, 06/15/17 ...................................... NR, A- 500,000 523,283 ----------- 5,524,734 ----------- INDUSTRIALS -- 6.9% Allied Waste North America, Inc., 6.38%, 04/15/11 ............................... Baa3, BBB 500,000 521,971 Allied Waste North America, Inc., 6.88%, 06/01/17 ............................... Baa3, BBB 600,000 636,750 CSX Corp., 7.90%, 05/01/17....................................................... Baa3, BBB- 685,000 793,491 GATX Corp., 4.75%, 10/01/12 ..................................................... Baa1, BBB+ 500,000 510,569 General Electric Co., 5.00%, 02/01/13 ........................................... Aa2, AA+ 875,000 925,715 Honeywell International, Inc., 5.00%, 02/15/19 .................................. NR, A 1,000,000 1,035,467 Ingersoll-Rand Co., 6.00%, 08/15/13 ............................................. NR, BBB+ 1,000,000 1,079,765 Ingersoll-Rand Co., 6.02%, 02/15/28 ............................................. A3, BBB+ 2,015,000 2,152,302 Textron, Inc., 6.20%, 03/15/15 .................................................. Baa3, BBB- 1,500,000 1,561,241 The Boeing Co., 5.00%, 03/15/14 ................................................. A2, A 1,250,000 1,345,686 Tyco Electronics Group SA, 6.00%, 10/01/12 ...................................... Baa2, BBB- 1,150,000 1,220,152 United Technologies Corp., 6.35%, 03/01/11 ...................................... A2, A 700,000 741,910 ----------- 12,525,019 ----------- INFORMATION TECHNOLOGY -- 1.6% Cisco Systems, Inc., 5.50%, 02/22/16 ............................................ A1, A+ 800,000 878,319 Electronic Data Systems LLC, 6.00%, 08/01/13 .................................... A2, A 1,750,000 1,934,485 ----------- 2,812,804 ----------- The accompanying notes are an integral part of the financial statements. 20
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- SHORT/INTERMEDIATE-TERM BOND FUND - --------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ----------- CORPORATE BONDS -- (CONTINUED) MATERIALS -- 4.2% Alcoa, Inc., 6.00%, 07/15/13 ................................................... Baa3, BBB- $1,251,000 $ 1,317,844 Alcoa, Inc., 5.72%, 02/23/19 ................................................... A2, BBB- 1,100,000 1,063,513 Dow Chemical Co. (The), 4.85%, 08/15/12 ........................................ Baa3, BBB- 2,000,000 2,101,922 Vulcan Materials Co., 1.50%, 12/15/10++ ........................................ Baa2, BBB 2,500,000 2,497,175 Weyerhaeuser Co., 6.75%, 03/15/12 .............................................. Baa2, BBB 625,000 662,171 ----------- 7,642,625 ----------- TELECOMMUNICATION SERVICES -- 2.9% AT&T, Inc., 5.10%, 09/15/14 .................................................... A2, A 875,000 941,203 Verizon Global Funding Corp., 7.25%, 12/01/10 .................................. A3, A 860,000 908,827 Verizon New Jersey, Inc., 5.88%, 01/17/12 ...................................... Baa1, A 2,400,000 2,557,063 Verizon Wireless Capital LLC, 5.25%, 02/01/12 .................................. A2, A 750,000 795,469 ----------- 5,202,562 ----------- UTILITIES -- 6.7% Alabama Power Co., 5.20%, 01/15/16 ............................................. A2, A 850,000 876,876 CMS Energy Corp., 6.55%, 07/17/17 .............................................. Ba1, BB+ 625,000 617,225 Detroit Edison Co. (The), 5.60%, 06/15/18 ...................................... Baa1, A- 950,000 1,002,683 Exelon Generation Co. LLC, 6.20%, 10/01/17 ..................................... A3, BBB 1,000,000 1,071,940 Florida Power & Light Co., 5.55%, 11/01/17 ..................................... Aa3, A 500,000 539,618 Illinois Power Co., 9.75%, 11/15/18 ............................................ Baa1, BBB 1,800,000 2,238,246 Nevada Power Co., 8.25%, 06/01/11 .............................................. Baa3, BBB 2,300,000 2,486,194 Oklahoma Gas & Electric Co., 6.65%, 07/15/27 ................................... A2, BBB+ 440,000 463,825 PECO Energy Corp., 4.75%, 10/01/12 ............................................. A2, A- 2,000,000 2,132,718 Southern California Edison Corp., 5.00%, 01/15/16 .............................. A2, A 654,000 681,836 ----------- 12,111,161 ----------- TOTAL CORPORATE BONDS (COST $90,681,471) ................................................................... 94,828,199 ----------- MUNICIPAL BONDS -- 0.4% CALIFORNIA -- 0.4% California State G.O. Unltd. Bonds, 7.50%, 04/01/34 ............................................................ NR, A 750,000 727,957 ----------- 727,957 ----------- MORTGAGE-BACKED SECURITIES -- 4.2% Federal Home Loan Mortgage Corporation Notes, 2751 VT, 6.00%, 02/15/34 .............................................................. 7,633 7,783 Federal Home Loan Mortgage Corporation Notes, 3159 PB, 6.00%, 01/15/29 .............................................................. 1,100,000 1,143,626 Federal Home Loan Mortgage Corporation Notes, Pool B19228, 4.50%, 04/01/20 .............................................................. 307,585 318,962 The accompanying notes are an integral part of the financial statements. 21
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- SHORT/INTERMEDIATE-TERM BOND FUND - --------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE AMOUNT (NOTE 2) ---------- ----------- MORTGAGE-BACKED SECURITIES -- (CONTINUED) Federal Home Loan Mortgage Corporation Notes, Pool E00530, 6.00%, 01/01/13 ............................................................................ $ 23,057 $ 24,357 Federal Home Loan Mortgage Corporation Notes, Pool G01625, 5.00%, 11/01/33 ............................................................................ 394,232 405,895 Federal Home Loan Mortgage Corporation Notes, Pool G02390, 6.00%, 09/01/36 ............................................................................ 306,347 325,685 Federal Home Loan Mortgage Corporation Notes, Pool G08097, 6.50%, 11/01/35 ............................................................................ 191,853 205,703 Federal Home Loan Mortgage Corporation Notes, Pool G08193, 6.00%, 04/01/37 ............................................................................ 570,978 606,486 Federal Home Loan Mortgage Corporation Notes, Pool M80842, 3.50%, 08/01/10 ............................................................................ 928,096 938,770 Federal National Mortgage Association Notes, 2005-29 WC, 4.75%, 04/25/35 ............................................................................ 308,052 317,442 Federal National Mortgage Association Notes, 2005-97 LB, 5.00%, 11/25/35 ............................................................................ 774,726 804,490 Federal National Mortgage Association Notes, Pool 254833, 4.50%, 08/01/18 ............................................................................ 135,825 141,570 Federal National Mortgage Association Notes, Pool 256639, 5.00%, 02/01/27 ............................................................................ 566,136 585,879 Federal National Mortgage Association Notes, Pool 256752, 6.00%, 06/01/27 ............................................................................ 309,461 330,323 Federal National Mortgage Association Notes, Pool 257007, 6.00%, 12/01/27 ............................................................................ 636,802 679,731 Federal National Mortgage Association Notes, Pool 612514, 3.97%, 05/01/33++ .......................................................................... 142,593 147,112 Federal National Mortgage Association Notes, Pool 629603, 5.50%, 02/01/17 ............................................................................ 132,171 140,530 Federal National Mortgage Association Notes, Pool 688996, 8.00%, 11/01/24 ............................................................................ 52,930 60,485 Federal National Mortgage Association Notes, Pool 745412, 5.50%, 12/01/35 ............................................................................ 284,250 297,826 ------------ TOTAL MORTGAGE-BACKED SECURITIES (COST $7,135,360) ................. ...................................... 7,482,655 ------------ U.S. AGENCY OBLIGATIONS -- 23.4% FEDERAL HOME LOAN BANKS NOTES -- 5.3% Federal Home Loan Banks Notes, 4.88%, 11/18/11 ............................................. 5,195,000 5,548,769 Federal Home Loan Banks Notes, 4.50%, 09/16/13 ............................................. 1,200,000 1,295,460 Federal Home Loan Banks Notes, 5.50%, 08/13/14(1) .......................................... 2,000,000 2,243,878 Federal Home Loan Banks Notes, 4.88%, 05/17/17 ............................................. 500,000 534,653 ------------ 9,622,760 ------------ The accompanying notes are an integral part of the financial statements. 22
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- SHORT/INTERMEDIATE-TERM BOND FUND - --------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE AMOUNT (NOTE 2) ---------- ----------- U.S. AGENCY OBLIGATIONS -- (CONTINUED) FEDERAL HOME LOAN MORTGAGE CORPORATION NOTES -- 5.8% Federal Home Loan Mortgage Corporation Notes, 6.88%, 09/15/10 .............................. $1,140,000 $ 1,191,542 Federal Home Loan Mortgage Corporation Notes, 5.50%, 09/15/11 .............................. 615,000 660,399 Federal Home Loan Mortgage Corporation Notes, 4.38%, 07/17/15 .............................. 1,315,000 1,400,717 Federal Home Loan Mortgage Corporation Notes, 5.25%, 04/18/16 .............................. 6,500,000 7,150,234 ------------ 10,402,892 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES -- 12.3% Federal National Mortgage Association Notes, 4.75%, 03/12/10 ............................... 795,000 802,210 Federal National Mortgage Association Notes, 6.63%, 11/15/10 ............................... 800,000 842,362 Federal National Mortgage Association Notes, 5.50%, 03/15/11 ............................... 2,405,000 2,541,606 Federal National Mortgage Association Notes, 5.00%, 10/15/11 ............................... 1,250,000 1,335,941 Federal National Mortgage Association Notes, 1.00%, 11/23/11 ............................... 5,000,000 4,988,345 Federal National Mortgage Association Notes, 4.13%, 04/15/14 ............................... 4,985,000 5,301,742 Federal National Mortgage Association Notes, 5.00%, 02/13/17 ............................... 2,500,000 2,713,743 Federal National Mortgage Association Notes, 5.00%, 05/11/17 ............................... 3,500,000 3,801,703 ------------ 22,327,652 ------------ TOTAL U.S. AGENCY OBLIGATIONS (COST $39,758,127) ......................................................... 42,353,304 ------------ U.S. TREASURY NOTES -- 17.9% U.S. Treasury Notes, 4.25%, 10/15/10 ....................................................... 350,000 360,473 U.S. Treasury Notes, 5.00%, 08/15/11 ....................................................... 180,000 191,925 U.S. Treasury Notes, 1.50%, 07/15/12(1) .................................................... 3,000,000 3,004,686 U.S. Treasury Notes, 4.25%, 11/15/14(1) .................................................... 1,300,000 1,400,344 U.S. Treasury Notes, 4.13%, 05/15/15 ....................................................... 2,420,000 2,580,325 U.S. Treasury Notes, 4.25%, 08/15/15 ....................................................... 2,000,000 2,140,624 U.S. Treasury Notes, 4.50%, 02/15/16(1) .................................................... 2,000,000 2,157,344 U.S. Treasury Notes, 2.63%, 04/30/16(1) .................................................... 6,000,000 5,813,904 U.S. Treasury Notes, 4.75%, 08/15/17(1) .................................................... 9,000,000 9,765,702 U.S. Treasury Notes, 4.25%, 11/15/17 ....................................................... 3,000,000 3,144,375 U.S. Treasury Notes, 2.75%, 02/15/19 ....................................................... 2,000,000 1,841,250 ------------ 32,400,952 ------------ TOTAL U.S. TREASURY NOTES (COST $32,573,027) ............................................................ 32,400,952 ------------ SHARES --------- SHORT-TERM INVESTMENTS -- 0.9% BlackRock Liquidity Funds TempCash Portfolio - Institutional Series ........................ 802,919 802,919 BlackRock Liquidity Funds TempFund Portfolio - Institutional Series ........................ 802,919 802,919 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $1,605,838) .......................................................... 1,605,838 ------------ The accompanying notes are an integral part of the financial statements. 23
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- SHORT/INTERMEDIATE-TERM BOND FUND - --------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE SHARES (NOTE 2) ---------- ------------ SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR LOANED SECURITIES -- 11.4% BlackRock Liquidity Funds TempFund Portfolio ................................................. 10,998,653 $ 10,998,653 Institutional Money Market Trust ............................................................. 9,641,541 9,641,541 ------------ TOTAL SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR LOANED SECURITIES (Cost $20,640,194)(4) ...................................................................... 20,640,194 ------------ TOTAL INVESTMENTS -- 110.7% (COST $193,187,484)(2)(3) ....................................................... 200,039,099 LIABILITIES IN EXCESS OF OTHER ASSETS -- (10.7)% ............................................................ (19,282,471) ------------ NET ASSETS -- 100.0% ........................................................................................ $180,756,628 ============ - ---------- + Although certain securities are not rated (NR) by either Moody's or S&P, they have been determined to be of comparable quality to investment grade securities by the investment adviser. ++ Denotes a Variable or Floating or Step Rate Note. Variable or Floating or Step Rate Notes are instruments whose rates change periodically. The rates shown are the interest rates as of December 31, 2009. @ Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other "accredited investors." Unless otherwise indicated, security is considered liquid. (1) Security partially or fully on loan. (2) At December 31, 2009, the market value of securities on loan for the Short/Intermediate Bond Fund was $20,193,372. (3) The cost for Federal income tax purposes is $193,187,484. At December 31, 2009, net unrealized appreciation was $6,851,615. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $7,673,455 and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $821,840. (4) See Note 5 in Notes to Financial Statements. G.O. - General Obligation PLC - Public Limited Company The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 PRICES INPUTS INPUTS ----------------- ----------- ------------ ------------ INVESTMENTS IN SECURITIES: Corporate Debt .......................................... $ 94,828,199 $ -- $ 94,828,199 $ -- Mortgage-Backed Securities .............................. 7,482,655 -- 7,482,655 -- U.S. Treasury and Agency Obligations .................... 74,754,256 -- 74,754,256 -- Municipal Securities .................................... 727,957 -- 727,957 -- Short-Term Investments .................................. 22,246,032 22,246,032 -- -- ------------ ----------- ------------ ---- Total ................................................ $200,039,099 $22,246,032 $177,793,067 $ -- ============ =========== ============ ==== The accompanying notes are an integral part of the financial statements. 24
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- BROAD MARKET BOND FUND - ---------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ------------- ---------- ------------ CORPORATE BONDS -- 65.8% CONSUMER DISCRETIONARY -- 7.8% Anheuser-Busch InBev Worldwide, Inc. 144A, 7.75%, 01/15/19@ ........................................................... NR, BBB+ $ 650,000 $ 761,017 Anheuser-Busch InBev Worldwide, Inc. 144A, 8.20%, 01/15/39@ ........................................................... Baa2, BBB+ 500,000 632,250 Comcast Cable Communications Holdings, Inc., 8.38%, 03/15/13 ............................................................ Baa2, BBB+ 896,000 1,032,816 Comcast Corp., 5.70%, 07/01/19 ............................................... Baa1, BBB+ 400,000 419,618 Royal Caribbean Cruises Ltd., 7.00%, 06/15/13 ................................ Ba3, BB- 300,000 299,250 Time Warner, Inc., 5.50%, 11/15/11 ........................................... Baa2, BBB 600,000 637,006 Time Warner Entertainment Co., LP, 8.88%, 10/01/12 ............................................................ Baa2, BBB 300,000 344,365 Time Warner Entertainment Co., LP, 8.38%, 03/15/23 ............................................................ Baa2, BBB 900,000 1,066,132 ------------ 5,192,454 ------------ CONSUMER STAPLES -- 1.9% General Mills, Inc., 5.65%, 02/15/19 ......................................... Baa1, BBB+ 500,000 530,275 Kraft Foods, Inc., 5.25%, 10/01/13 ........................................... Baa2, A- 400,000 422,694 Kraft Foods, Inc., 6.13%, 02/01/18 ........................................... Baa2, A- 300,000 315,463 ------------ 1,268,432 ------------ ENERGY -- 7.9% Anadarko Petroleum Corp., 8.70%, 03/15/19 .................................... Baa3, BBB- 400,000 497,566 Chesapeake Energy Corp., 9.50%, 02/15/15 ..................................... Ba3, BB 400,000 439,000 Kinder Morgan Energy Partners LP, 7.13%, 03/15/12 ............................................................ Baa2, BBB 500,000 545,229 Marathon Oil Corp., 6.80%, 03/15/32 .......................................... Baa1, BBB+ 1,700,000 1,802,751 Sunoco, Inc., 9.63%, 04/15/15 ................................................ Baa2, BBB- 550,000 654,550 Transocean, Inc., 5.25%, 03/15/13 ............................................ Baa2, BBB+ 250,000 267,910 Valero Energy Corp., 4.75%, 04/01/14 ......................................... Baa3, BBB 785,000 801,547 Weatherford International Ltd., 5.15%, 03/15/13 .............................. Baa1, BBB+ 200,000 209,446 ------------ 5,217,999 ------------ FINANCIALS -- 22.1% American Express Co., 4.88%, 07/15/13 ........................................ A3, BBB+ 650,000 678,197 American Honda Finance Corp. 144A, 4.63%, 04/02/13@ ........................................................... A1, A+ 750,000 770,587 Bank of America Corp., 7.63%, 06/01/19 ....................................... A2, A 500,000 578,423 Bank of New York Mellon Corp. (The), 4.95%, 11/01/12 ............................................................ Aa2, AA- 600,000 646,187 Bank One Corp., 8.00%, 04/29/27 .............................................. Aa3, A 425,000 514,149 BlackRock, Inc., 5.00%, 12/10/19 ............................................. A1, A+ 500,000 491,341 Caterpillar Financial Services Corp., 5.75%, 02/15/12 ............................................................ A2, A 1,000,000 1,079,395 The accompanying notes are an integral part of the financial statements. 25
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- BROAD MARKET BOND FUND - ---------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ------------- ---------- ------------ CORPORATE BONDS -- (CONTINUED) FINANCIALS -- (CONTINUED) Devon Financing Corp., 6.88%, 09/30/11 ..................................... Baa1, BBB+ $ 750,000 $ 814,736 Ford Motor Credit Co., LLC, 7.88%, 06/15/10 ................................ B1, B- 400,000 406,043 General Electric Capital Corp., 3.75%, 11/14/14 ............................ Aa2, AA+ 400,000 399,302 Goldman Sachs Group, Inc. (The), 7.50%, 02/15/19 ........................... A1, A 750,000 874,352 John Deere Capital Corp., 4.90%, 09/09/13 .................................. A2, A 425,000 456,860 JPMorgan Chase & Co., 4.65%, 06/01/14 ...................................... Aa3e, A+ 500,000 526,719 MetLife, Inc., 5.00%, 06/15/15 ............................................. A2, A- 400,000 420,712 Morgan Stanley, 4.75%, 04/01/14 ............................................ A1, A- 1,000,000 1,005,747 Simon Property Group LP, 5.75%, 12/01/15 ................................... A3, A- 500,000 509,876 SLM Corp., 4.50%, 07/26/10 ................................................. Baa1, BBB- 300,000 298,925 Swiss Bank Corp., 7.38%, 06/15/17 .......................................... Aa1, A 1,400,000 1,470,727 Textron Financial Corp., 5.13%, 02/03/11 ................................... Baa3, BB+ 625,000 630,932 Wachovia Corp., 7.57%, 08/01/26++ .......................................... A1, A+ 591,000 641,091 Wells Fargo & Co., 5.13%, 09/01/12 ......................................... Aa2, A+ 700,000 736,000 Wells Fargo Financial, Inc., 5.50%, 08/01/12 ............................... Aa2, AA- 400,000 428,134 Westpac Banking Corp., 4.88%, 11/19/19 ..................................... Aa1, AA 250,000 246,751 ------------ 14,625,186 ------------ HEALTH CARE -- 2.5% Merck & Co., Inc., 4.38%, 02/15/13 ......................................... Aa3, AA- 325,000 342,154 Pfizer, Inc., 5.35%, 03/15/15 .............................................. Aa2, AA 500,000 546,452 Roche Holdings, Inc. 144A, 4.50%, 03/01/12@ ................................ A2, AA- 500,000 525,159 United Health Group, Inc., 6.00%, 06/15/17 ................................. Baa1, A- 250,000 261,642 ------------ 1,675,407 ------------ INDUSTRIALS -- 11.0% Allied Waste North America, Inc., 6.38%, 04/15/11 .......................... Baa3, BBB 500,000 521,971 Allied Waste North America, Inc., 6.88%, 06/01/17 .......................... Baa3, BBB 300,000 318,375 CSX Corp., 7.90%, 05/01/17 ................................................. Baa3, BBB- 1,414,000 1,637,951 GATX Corp., 4.75%, 10/01/12 ................................................ Baa1, BBB+ 250,000 255,284 General Electric Co., 5.00%, 02/01/13 ...................................... Aa2, AA+ 700,000 740,572 Honeywell International, Inc., 5.00%, 02/15/19 ............................. A2, A 750,000 776,600 Ingersoll-Rand Co., 6.02%, 02/15/28 ........................................ A3, BBB+ 900,000 961,326 Textron, Inc., 6.20%, 03/15/15 ............................................. Baa3, BBB- 500,000 520,413 The Boeing Co., 5.00%, 03/15/14 ............................................ A2, A 750,000 807,412 Tyco Electronics Group SA, 6.00%, 10/01/12 ................................. Baa2, BBB- 400,000 424,401 United Technologies Corp., 6.35%, 03/01/11 ................................. A2, A 300,000 317,962 ------------ 7,282,267 ------------ INFORMATION TECHNOLOGY -- 1.6% Electronic Data Systems LLC, 6.00%, 08/01/13 ............................... A2, A 300,000 331,626 Electronic Data Systems LLC, 7.45%, 10/15/29 ............................... A2, A 600,000 709,979 ------------ 1,041,605 ------------ The accompanying notes are an integral part of the financial statements. 26
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- BROAD MARKET BOND FUND - ---------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ------------- ---------- ------------ CORPORATE BONDS -- (CONTINUED) MATERIALS -- 3.4% Alcoa, Inc., 5.72%, 02/23/19 ................................................. Baa1, BBB- $ 550,000 $ 531,756 Dow Chemical Co. (The), 4.85%, 08/15/12 ...................................... Baa3, BBB- 750,000 788,221 Vulcan Materials Co., 1.50%, 12/15/10++ ...................................... Baa2, BBB 500,000 499,435 Weyerhaeuser Co., 6.75%, 03/15/12 ............................................ Ba1, BBB- 400,000 423,790 ------------ 2,243,202 ------------ TELECOMMUNICATION SERVICES -- 1.7% Verizon Global Funding Corp., 7.25%, 12/01/10 ................................ A3, A 540,000 570,659 Verizon New Jersey, Inc., 5.88%, 01/17/12 .................................... Baa1, A 500,000 532,722 ------------ 1,103,381 ------------ UTILITIES -- 5.9% CMS Energy Corp., 6.55%, 07/17/17 ............................................ Ba1, BB+ 300,000 296,268 Florida Power Corp., 6.35%, 09/15/37 ......................................... A2, A- 425,000 460,635 Illinois Power Co., 9.75%, 11/15/18 .......................................... Baa1, BBB 600,000 746,082 Nevada Power Co., 8.25%, 06/01/11 ............................................ Baa3, BBB 1,000,000 1,080,954 Oklahoma Gas & Electric Co., 6.65%, 07/15/27 ................................. A2, BBB+ 565,000 595,592 PECO Energy Corp., 4.75%, 10/01/12 ........................................... A2, A- 670,000 714,461 ------------ 3,893,992 ------------ TOTAL CORPORATE BONDS (COST $41,216,307) .................................................................. 43,543,925 ------------ MUNICIPAL BONDS -- 1.1% CALIFORNIA -- 1.1% California State G.O. Unltd. Bonds, 7.50%, 04/01/34 ............................................................ A2, A 800,000 776,488 ------------ TOTAL MUNICIPAL BONDS (COST $846,365) ..................................................................... 776,488 ------------ MORTGAGE-BACKED SECURITIES -- 5.6% Federal Home Loan Mortgage Corporation Notes, 3159 PB, 6.00%, 01/15/29 ............................................................ 700,000 727,762 Federal Home Loan Mortgage Corporation Notes, Pool E00530, 6.00%, 01/01/13 ............................................................ 13,930 14,716 Federal Home Loan Mortgage Corporation Notes, Pool G01625, 5.00%, 11/01/33 ............................................................ 394,232 405,895 Federal Home Loan Mortgage Corporation Notes, Pool G02390, 6.00%, 09/01/36 ............................................................ 175,056 186,106 Federal Home Loan Mortgage Corporation Notes, Pool G08097, 6.50%, 11/01/35 ............................................................ 118,556 127,114 Federal Home Loan Mortgage Corporation Notes, Pool M80842, 3.50%, 08/01/10 ............................................................ 81,096 82,028 The accompanying notes are an integral part of the financial statements. 27
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- BROAD MARKET BOND FUND - ---------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE AMOUNT (NOTE 2) ---------- ------------ MORTGAGE-BACKED SECURITIES -- (CONTINUED) Federal Home Loan Mortgage Corporation Notes, Pool M80865, 7 Yr. Balloon, 4.50%, 11/01/10 ............................................................. $ 202,407 $ 206,707 Federal National Mortgage Association Notes, 2005-29 WC, 4.75%, 04/25/35 ............................................................................ 142,178 146,512 Federal National Mortgage Association Notes, Pool 254833, 4.50%, 08/01/18 ............................................................................ 101,868 106,178 Federal National Mortgage Association Notes, Pool 256515, 6.50%, 12/01/36 ............................................................................ 265,060 284,443 Federal National Mortgage Association Notes, Pool 256639, 5.00%, 02/01/27 ............................................................................ 283,068 292,940 Federal National Mortgage Association Notes, Pool 256752, 6.00%, 06/01/27 ............................................................................ 247,569 264,258 Federal National Mortgage Association Notes, Pool 629603, 5.50%, 02/01/17 ............................................................................ 79,302 84,318 Federal National Mortgage Association Notes, Pool 745412, 5.50%, 12/01/35 ............................................................................ 281,994 295,462 Federal National Mortgage Association Notes, Pool 838891, 6.00%, 07/01/35 ............................................................................ 452,951 481,968 ------------ TOTAL MORTGAGE-BACKED SECURITIES (COST $3,534,737) ......................................................... 3,706,407 ------------ U.S. AGENCY OBLIGATIONS -- 13.3% FEDERAL HOME LOAN BANKS NOTES -- 5.6% Federal Home Loan Banks Notes, 5.75%, 05/15/12 ............................................. 800,000 878,670 Federal Home Loan Banks Notes, 4.50%, 11/15/12 ............................................. 1,000,000 1,072,919 Federal Home Loan Banks Notes, 4.50%, 09/16/13 ............................................. 300,000 323,865 Federal Home Loan Banks Notes, 5.25%, 06/18/14 ............................................. 800,000 888,729 Federal Home Loan Banks Notes, 5.50%, 08/13/14(1) .......................................... 500,000 560,969 ------------ 3,725,152 ------------ FEDERAL HOME LOAN MORTGAGE CORPORATION NOTES -- 0.8% Federal Home Loan Mortgage Corporation Notes, 4.38%, 07/17/15 .............................. 500,000 532,592 ------------ 532,592 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION NOTES -- 6.9% Federal National Mortgage Association Notes, 4.88%, 12/15/16 ............................... 800,000 865,491 Federal National Mortgage Association Notes, 5.00%, 02/13/17 ............................... 1,000,000 1,085,497 Federal National Mortgage Association Notes, 5.00%, 05/11/17 ............................... 1,000,000 1,086,201 Federal National Mortgage Association Notes, 6.25%, 05/15/29 ............................... 900,000 1,029,193 Federal National Mortgage Association Notes, 7.25%, 05/15/30 ............................... 400,000 511,487 ------------ 4,577,869 ------------ TOTAL U.S. AGENCY OBLIGATIONS (COST $8,388,093) ......................................................... 8,835,613 ------------ The accompanying notes are an integral part of the financial statements. 28
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- BROAD MARKET BOND FUND - ---------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE AMOUNT (NOTE 2) ---------- ------------ U.S. TREASURY OBLIGATIONS -- 11.3% U.S. TREASURY BONDS -- 7.1% U.S. Treasury Bonds, 7.50%, 11/15/16 ....................................................... $ 300,000 $ 378,070 U.S. Treasury Bonds, 8.88%, 02/15/19 ....................................................... 1,130,000 1,578,469 U.S. Treasury Bonds, 7.13%, 02/15/23 ....................................................... 525,000 673,312 U.S. Treasury Bonds, 6.00%, 02/15/26 ....................................................... 300,000 350,953 U.S. Treasury Bonds, 6.38%, 08/15/27 ....................................................... 450,000 549,563 U.S. Treasury Bonds, 6.25%, 05/15/30 ....................................................... 500,000 610,781 U.S. Treasury Bonds, 5.38%, 02/15/31 ....................................................... 500,000 552,500 ------------ 4,693,648 ------------ U.S. TREASURY NOTES -- 4.2% U.S. Treasury Notes, 3.13%, 04/30/13 ....................................................... 400,000 416,750 U.S. Treasury Notes, 4.25%, 11/15/13(1) .................................................... 800,000 864,250 U.S. Treasury Notes, 4.50%, 02/15/16(1) .................................................... 500,000 539,336 U.S. Treasury Notes, 2.63%, 04/30/16(1) .................................................... 1,000,000 968,984 ------------ 2,789,320 ------------ TOTAL U.S. TREASURY OBLIGATIONS (COST $6,831,269) ........................................................ 7,482,968 ------------ SHARES ---------- PREFERRED STOCK -- 0.4% FINANCIALS -- 0.4% Wachovia Capital Trust IX, 6.375% .......................................................... 12,000 264,120 ------------ TOTAL PREFERRED STOCK (COST $300,000) ................................................................... 264,120 ------------ SHORT-TERM INVESTMENTS -- 1.5% BlackRock Liquidity Funds TempCash Portfolio - Institutional Series ........................ 488,649 488,649 BlackRock Liquidity Funds TempFund Portfolio - Institutional Series ........................ 488,648 488,648 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $977,297) ............................................................ 977,297 ------------ The accompanying notes are an integral part of the financial statements. 29
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- BROAD MARKET BOND FUND - ---------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE SHARES (NOTE 2) ---------- ------------ SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR LOANED SECURITIES -- 4.0% BlackRock Liquidity Funds TempFund Portfolio ................................................. 1,396,766 $ 1,396,766 Institutional Money Market Trust ............................................................. 1,224,420 1,224,420 ------------ TOTAL SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR LOANED SECURITIES (COST $2,621,186)(4) ..................................................................................... 2,621,186 ------------ TOTAL INVESTMENTS -- 103.0% (COST $64,715,254)(2)(3) ........................................................ 68,208,004 LIABILITIES IN EXCESS OF OTHER ASSETS -- (3.0)% ............................................................. (2,011,127) ------------ NET ASSETS -- 100.0% ........................................................................................ $ 66,196,877 ============ - ---------- + Although certain securities are not rated (NR) by either Moody's or S&P, they have been determined to be of comparable quality to investment grade securities by the investment adviser. ++ Denotes a Variable or Floating Rate Note. Variable or Floating Rate Notes are instruments whose rates change periodically. The rates shown are the interest rates as of December 31, 2009. @ Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other "accredited investors." Unless otherwise indicated, security is considered liquid. (1) Security partially or fully on loan. (2) At December 31, 2009, the market value of securities on loan for the Broad Market Bond Fund was $2,566,359. (3) The cost for Federal income tax purposes is $64,715,254. At December 31, 2009, net unrealized appreciation was $3,492,750. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $3,811,464, and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $318,714. (4) See Note 5 in Notes to Financial Statements. The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 PRICES INPUTS INPUTS ----------------- ----------- ------------ ------------ INVESTMENTS IN SECURITIES: Corporate Debt .......................................... $43,543,925 $ -- $43,543,925 $ -- Mortgage-Backed Securities .............................. 3,706,407 -- 3,706,407 -- U.S. Treasury and Agency Obligations .................... 16,318,581 -- 16,318,581 -- Municipal Securities .................................... 776,488 -- 776,488 -- Preferred Stocks ........................................ 264,120 264,120 -- -- Short-Term Investments .................................. 3,598,483 3,598,483 -- -- ----------- ---------- ----------- ---- Total ................................................ $68,208,004 $3,862,603 $64,345,401 $ -- =========== ========== =========== ==== The accompanying notes are an integral part of the financial statements. 30
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ------------ MUNICIPAL BONDS -- 94.3% ALABAMA -- 8.6% Alabama 21st Century Auth., 5.75%, 12/01/19 .................................... Baa1, A- $ 750,000 $ 764,280 Alabama 21st Century Auth. Tobacco Settlement Rev. Bonds, 5.75%, 12/01/17 ...... Baa1, A- 465,000 477,253 Alabama Housing Fin. Auth. Single Family Mtge. Rev. Bonds, Ser. A-1, (GNMA/FNMA), 5.00%, 10/01/14 .............................................................. Aaa, NR 85,000 85,251 Alabama State Brd. of Educ. Calhoun Community College Rev. Bonds, (AMBAC), 5.00%, 05/01/15 .............................................................. A2, NR 500,000 545,670 Alabama Water Poll. Cntrl. Auth. Rev. Bonds, Ser. B, (AMBAC), 4.50%, 08/15/10 .. NR, NR 250,000 250,565 Birmingham, AL Airport Auth. Rev. Bond Ref.-AMT, (AMBAC), 5.00%, 07/01/12(2) ... A2, A 2,370,000 2,437,426 East Alabama Health Care Auth. Ser. A, 5.25%, 09/01/36++ ....................... NR, A 200,000 199,162 Jefferson Cnty., AL, 5.25%, 02/01/12 ........................................... Aa3, AAA 200,000 192,578 Jefferson Cnty., AL, 5.25%, 02/01/16 ........................................... Aa3, AAA 25,000 23,837 Jefferson Cnty., AL, 5.50%, 01/01/21 ........................................... Aa3, AAA 2,300,000 2,253,586 Jefferson Cnty., AL, 5.00%, 04/01/21 ........................................... Baa1, A 3,455,000 2,436,811 Jefferson Cnty., AL Sewer Rev. Bonds, (FSA), 5.25%, 02/01/11 ................... AA3, AAA 250,000 246,935 Mobile, AL Industrial Development Board VRDB Ser. A, 4.75%, 06/01/34++ ......... A2, A 500,000 524,060 Trussville, AL G.O. Ltd. Bonds, (NATL-RE), 4.60%, 10/01/13 ..................... A1, NR 165,000 170,321 Univ. of Alabama at Birmingham Hospital Rev. Bonds, Ser. A, 5.00%, 09/01/15 .... A1, A+ 500,000 537,875 Univ. of Alabama at Birmingham Hospital Rev. Bonds, Ser. A, 5.75%, 09/01/22++ .. A1, A+ 1,000,000 1,073,880 ------------ 12,219,490 ------------ ARIZONA -- 1.0% Greenlee Cnty., AZ School Dist. G.O. Unltd. Bonds, 5.00%, 07/01/10 ............. Baa3, NR 150,000 149,846 Greenlee Cnty., AZ School Dist. G.O. Unltd. Bonds, 5.00%, 07/01/13 ............. Baa3, NR 200,000 218,130 Tucson, AZ Certificate Participation Bonds, Public Improvements, Ser. A, (NATL-RE), 5.00%, 07/01/21 ................................................... A1, A+ 1,000,000 1,046,740 ------------ 1,414,716 ------------ The accompanying notes are an integral part of the financial statements. 31
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ------------ CALIFORNIA -- 18.4% ABAG Fin. Auth. for Nonprofit Coros, California Rev. Bonds (Windemere Ranch Financing Prog.), Ser. A, (CIFG), 5.00%, 09/02/20 ............................ NR, BBB $1,340,000 $ 1,265,751 ABAG Fin. Auth. for Nonprofit Coros, California Rev. Bonds (Windemere Ranch Financing Prog.), Ser. A, (CIFG), 5.00%, 09/02/21 ............................ NR, BBB 3,660,000 3,437,765 California Health Facilities Fin. Auth. Rev. Bonds, 5.13%, 07/01/22 ............ A2, A 1,000,000 1,011,660 California Health Facilities Fin. Auth. Ser. H, 4.45%, 07/01/26++ .............. A2, A 510,000 527,141 California Infrastructure & Economic Dev. Rev. Bonds, 5.00%, 10/01/18 .......... Aa2, AA+ 365,000 393,809 California State Public Works Brd., 5.00%, 12/01/19 ............................ Baa2, NR 2,000,000 1,989,660 California State Public Works Brd. Lease. Rev. Bonds (Dept. Health Services - Richmond Lab), Ser. B, (XLCA), 5.00%, 11/01/23 ............................... BAA2, A- 960,000 917,722 California State Public Works Brd. Ref. Rev. Bonds, Ser. D, (NATL-RE), 5.25%, 10/01/11 .............................................................. BAA1, AA 150,000 158,775 California State School Imps. Ref. G.O. Bonds, 5.25%, 02/01/14 ................. BAA1, A 585,000 642,330 California Statewide Communities Development Auth., 5.00%, 06/15/13 ............ Baa1, A 4,000,000 4,252,920 Glendale, CA Univ. School Dist. G.O. Bonds, Ser. C, (FSA), 5.50%, 09/01/15 ..... AA3, AAA 125,000 127,269 Lancaster, CA Redev. Agency Tax Allocation Ref. Bonds, (XCLA), 5.25%, 12/01/20 .............................................................. NR, A 400,000 402,380 Palm Desert, CA Fin. Auth., (NATL-RE) Ser.1A, 5.00%, 04/01/25 .................. A3, A 500,000 469,265 Redwood City, CA Elementary School Dist. G.O. Bonds, (FGIC), 5.50%, 08/01/14 ... NR, A+ 125,000 140,120 Sacramento City Financing Auth. Ser. B, 5.40%, 11/01/20 ........................ A2, A 4,000,000 4,202,240 San Francisco, CA City & Cnty., International Airport Rev. Bonds, (AMBAC) Ser. A, 5.25%, 01/01/19(2) ................................................... A3, BBB+ 1,540,000 1,498,097 San Jose, CA Redevelopment Agency Tax Allocation (Merged Area Redev. Proj.) Ser. C (NATL-RE), 5.00%, 08/01/24 ............................................ A3, A 1,655,000 1,564,256 State of California, 5.00%, 12/01/22 ........................................... Baa1, A 2,000,000 2,011,500 Tulare Cnty., CA Ctfs. Participation Ref. Bonds, (NATL-RE), 5.00%, 08/15/10 .... A3, NR 50,000 51,240 Univ. of CA Rev. Bonds, Ser. H, (NATL-RE), 5.00%, 05/15/18 ..................... Aa1, AA 490,000 526,480 Visalia, CA Cert. Participation Ref. Bonds, (NATL-RE), 5.00%, 12/01/18 ......... Baa1, A+ 500,000 531,060 ------------ 26,121,440 ------------ The accompanying notes are an integral part of the financial statements. 32
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ------------ COLORADO -- 3.0% Denver, CO Convention Center Hotel Auth. Ref. Bonds, (XLCA), 5.25%, 12/01/21 ... Baa3, BBB- $1,000,000 $ 944,100 Denver, CO Convention Center Hotel Auth. Ref. Bonds, (XLCA), 5.13%, 12/01/24 ... Baa3, BBB- 3,065,000 2,772,201 Denver, CO X Ref. Bonds, (XLCA), 5.00%, 11/15/23 ............................... A1, A+ 500,000 522,405 ------------ 4,238,706 ------------ CONNECTICUT -- 0.8% Bristol, CT Resource Recovery Rev. Bonds (Solid Waste Oper. Committee), (AMBAC), 5.00%, 07/01/14 .............................................................. A1, A+ 1,000,000 1,099,110 ------------ 1,099,110 ------------ DELAWARE -- 1.3% Delaware State Economic Dev. Auth. Ref. Rev. Bonds, (Delmarva Power Poll. Cntrl. Proj.), Ser. 2001C, (AMBAC), 4.90%, 05/01/26++ ........................ Baa2, BBB 250,000 251,030 Delaware State Economic Dev. Auth. Rev. Bonds, (Student Housing Univ. .......... Courtyard), (RADIAN), 5.38%, 08/01/11 ........................................ NR, NR 170,000 175,593 Delaware State Health Facilities Auth., 5.25%, 06/01/10 ........................ Baa1, BBB+ 250,000 251,670 Delaware State Health Facilities Auth. Ser. A, 5.50%, 06/01/24 ................. Baa1, BBB+ 1,250,000 1,230,400 ------------ 1,908,693 ------------ FLORIDA -- 2.4% Florida State Division of Bond Finance (Dept. Environmental Preservation) Ser. 2000-A (AMBAC), 5.00%, 07/01/12 ......................................... A1, AA- 1,750,000 1,752,747 Florida State Turnpike Auth. Ser. B, (AMBAC), 5.00%, 07/01/10 .................. Aa3, AA- 100,000 102,261 Lakeland, FL Energy Sys. Rev. Bonds, (NATL-RE), 5.50%, 10/01/14 ................ A1, A+ 455,000 483,474 Osceola Cnty., FL School Brd. Cert. Participation Four Corners Charter School Bonds, Ser. A, (NATL-RE), 5.80%, 08/01/15 .................................... Baa1, NR 100,000 103,971 Reedy Creek, FL Impt. Dist. Utilities Rev. Bonds, Ser. 1, (NATL-RE), 5.25%, 10/01/14 .............................................................. A3, A 900,000 973,008 ------------ 3,415,461 ------------ GEORGIA -- 1.3% Atlanta, GA Auth. Rev. Bonds, Ser. A, (FGIC), 5.88%, 01/01/16 .................. A1, A+ 1,370,000 1,386,111 The accompanying notes are an integral part of the financial statements. 33
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ------------ GEORGIA -- (Continued) Clayton Cnty., GA Dev. Auth. Rev. Bonds, Ser. A, (NATL-RE), 5.00%, 08/01/18 .... Aa3, AA $ 465,000 $ 502,451 ------------ 1,888,562 ------------ ILLINOIS -- 5.2% Chicago IL, Board of Educ., 5.00%, 12/01/21 .................................... Aa3, AAA 3,000,000 3,159,870 Chcago IL, Board of Educ. Ref. - Ded. Revs Bonds, Ser. B, (AMBAC), 5.00%, 12/01/21 .............................................................. A1, AA- 1,000,000 1,041,400 Chicago, IL Water Rev. Sr. Lien Bonds, (AMBAC), 5.75%, 11/01/11 ................ Aa3, AA 200,000 209,714 Illinois Finance Auth. Rev. Bonds Ser. B, (FSA), 5.25%, 01/01/22 ............... Aa3, NR 2,830,000 2,971,075 ------------ 7,382,059 ------------ INDIANA -- 3.5% Blackford Cnty., IN Industrial Sch. Bldg. Corp. Rev. Ref. Bond, First Mortgage, Ser. A, (NATL-RE), 5.00%, 07/15/17 ........................................... Baa1, AA+ 1,755,000 1,911,020 Indiana Finance Auth. Health System Rev. Bonds, 5.00%, 11/01/21 ................ Aa3, NR 2,000,000 2,039,880 Indiana Health Facility Fin. Auth. Ser. A, 5.00%, 11/01/27++ ................... Aa2, AA- 1,000,000 1,055,340 ------------ 5,006,240 ------------ KANSAS -- 0.6% Butler & Sedgwick Cnty., KS Univ. School Dist. G.O. Unltd. Bonds, (FSA), 6.00%, 09/01/14 .............................................................. Aa3, AAA 500,000 590,370 Topeka, KS G.O. Bonds (College Hill Pub. Imps.) Ser. A, (NATL-RE), 5.50%, 08/15/14 .............................................................. Aa3, NR 275,000 293,139 ------------ 883,509 ------------ LOUISIANA -- 0.3% Louisiana State Citizens Prop. Ins. Corp. Rev. Bonds, Pub. Imps., (AMBAC), 5.00%, 06/01/15 .............................................................. Baa2, A- 435,000 451,434 ------------ 451,434 ------------ MARYLAND -- 0.4% Maryland Health & Higher Educ. Fac. Auth., Johns Hopkins Health Systems, 5.00%, 05/15/42++ ............................................................ A1, A+ 550,000 583,781 ------------ 583,781 ------------ The accompanying notes are an integral part of the financial statements. 34
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ------------ MASSACHUSETTS -- 0.5% Massachusetts State Dev. Fin. Agency Rev. Bond (Univ. of MA, Visual & Performing Arts Proj.), 6.00%, 08/01/16 ...................................... A2, NR $ 310,000 $ 352,591 Massachusetts State Housing Fin. Agency VRDB Rev. Bonds, 4.00%, 12/01/10++,(2) ........................................................ Aa2, AA 85,000 85,365 Massachusetts State Special Oblig. Rev. Bonds (Federal Highway Grant Auth.), Ser. A, (FSA), 5.00%, 12/15/12 ............................................... Aaa, NR 275,000 302,093 ------------ 740,049 ------------ MICHIGAN -- 2.0% Detroit, MI Water Utility Imps. Rev. Bonds, Ser. A, (FSA), 5.00%, 07/01/23 ..... Aa3, AAA 550,000 564,696 Fowlerville, MI Community Schools Dist. G.O. Bonds, (FGIC), 5.00%, 05/01/15 .... Aa3, AA- 650,000 714,721 Michigan State Hosp. Fin. Auth. Ref. Bonds, 5.00%, 07/15/21 .................... A2, A 1,600,000 1,509,088 ------------ 2,788,505 ------------ MINNESOTA -- 0.6% St. Paul, MN Housing & Redev. Auth. Health Care Fac. Rev. Bonds, 5.00%, 05/15/12 .............................................................. Baa1, BBB 85,000 87,411 St. Paul, MN Housing & Redev. Auth. Health Care Fac. Rev. Bonds, 5.00%, 05/15/13 .............................................................. Baa1, BBB 225,000 232,137 St. Paul, MN Housing & Redev. Auth. Health Care Fac. Rev. Bonds, 5.00%, 05/15/15 .............................................................. Baa1, BBB 270,000 276,607 St. Paul, MN Housing & Redev. Auth. Health Care Fac. Rev. Bonds, 5.00%, 05/15/16 .............................................................. Baa1, BBB 300,000 304,386 ------------ 900,541 ------------ MISSISSIPPI -- 0.2% Warren Cnty., MS Gulf Opportunity Zone Rev. Bonds Ser. A, 6.50%, 09/01/32 ...... Baa3, BBB 250,000 256,283 ------------ 256,283 ------------ MISSOURI -- 1.2% Kansas City, MO Special Fac. Rev. Bonds Overhaul Base Proj., 4.00%, 09/01/10(2) ........................................................... A2, AA- 540,000 550,973 Kansas City, MO Special Fac. Rev. Bonds, MCI Overhaul Base Proj., 4.00%, 09/01/11(2) ........................................................... A2, AA- 465,000 469,655 Truman State Univ., MO Housing Sys. Rev. Bonds, (AMBAC), 5.00%, 06/01/15 ....... A2, NR 615,000 659,224 ------------ 1,679,852 ------------ The accompanying notes are an integral part of the financial statements. 35
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ------------ NEVADA -- 1.4% Clark Cnty., NV, (AMBAC), 5.00%, 11/01/25 ...................................... Aa1, AA+ $1,000,000 $ 1,039,740 Nevada State G.O. Unref. Bal. Bonds Dist No. 64-A, 5.13%, 09/01/10 ............. Aa2, AA+ 20,000 20,059 Nevada State Highway Imp. Rev. Bonds (Motor Vehicle Fuel Tax), (FGIC), 5.50%, 12/01/11 .............................................................. Aa3, AA+ 250,000 270,160 North Las Vegas, NV Ref. Bonds Ser. 60-B, 5.00%, 12/01/16 ...................... NR, NR 755,000 708,734 ------------ 2,038,693 ------------ NEW HAMPSHIRE -- 0.7% New Hampshire Business Fin. Auth., (NATL-RE) Ser. C, 5.45%, 05/01/21 ........... A3, A 1,000,000 1,036,140 ------------ 1,036,140 ------------ NEW JERSEY -- 3.9% Camden Cnty., Impt. Auth., 5.00%, 02/15/12 ..................................... Baa3, BBB 500,000 502,455 Camden Cnty., NJ Impt. Auth. Cooper Health Sys. Oblig. Group A, 5.00%, 02/15/15 .............................................................. Baa3, BBB 1,090,000 1,065,954 Camden Cnty., NJ Impt. Auth. Cooper Health Sys. Oblig. Group B, 5.00%, 02/15/15 .............................................................. Baa3, BBB 2,435,000 2,381,284 New Jersey Economic Development Auth. Rev. Bonds, (RADIAN), 5.50%, 06/15/16 .... Baa2, NR 200,000 205,192 New Jersey Health Care Fac. Fin. Auth., (Hackensack Univ. Medical Center), 5.13%, 01/01/21 .............................................................. Baa1, NR 600,000 617,214 New Jersey State Educ. Fac. Auth. Ref. Bonds Ser. A, 5.00%, 07/01/19 ........... Baa2, BBB+ 775,000 801,885 ------------ 5,573,984 ------------ NEW YORK -- 6.5% Cattaraugus Cnty., NY Industrial Dev. Agency (Olean Gen. Hosp. Proj.) Ser. A, 5.25%, 08/01/23 .............................................................. NR, A+ 525,000 525,184 New York City Health & Hospital Corp. Rev. (Health System) Ser. A (FSA), 5.00%, 02/15/13 .............................................................. A1, A+ 2,755,000 2,966,529 New York City Ind. Dev. Agency Ref. Bonds, 5.00%, 01/01/13(2) .................. A3, BBB+ 700,000 728,315 New York City Ser. E-1, 6.00%, 10/15/23 ........................................ Aa3, AA 750,000 867,847 New York State Thruway Auth., NY Highway Improv. Rev. Bonds, (AMBAC) Ser. F, 5.00%, 01/01/25 .............................................................. A1, A+ 1,000,000 1,057,760 New York State Urban Dev. Corp., 5.00%, 01/01/17 ............................... A1, AA- 500,000 519,425 New York Tobacco Sett. Fund. Corp. Rev. Bonds, Ser. A-1, 5.50%, 06/01/14 ....... A1, AA- 115,000 115,137 New York, NY G.O. Bonds, Ser. E, 5.25%, 08/01/12 ............................... Aa3, AA 250,000 274,405 The accompanying notes are an integral part of the financial statements. 36
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ------------ NEW YORK -- (CONTINUED) New York, NY Pub. Imps. G.O. Bonds, Ser. D1, 5.00%, 12/01/21 ................... Aa3, AA $1,000,000 $ 1,071,350 Tobacco Settlement Fin. Auth., Ser. B-1C, 5.50%, 06/01/14 ...................... A1, AA- 75,000 75,089 Tobacco Settlement Fin. Auth., Ser. C-1, (FGIC), 5.50%, 06/01/20 ............... A1, AA- 1,000,000 1,060,630 ------------ 9,261,671 ------------ NORTH CAROLINA -- 2.8% Charlotte, NC Airport Rev. Bonds, Ser. B, (NATL-RE), 5.25%, 07/01/11(2) ........ A1, A+ 1,000,000 1,010,770 Univ. of North Carolina Sys. Pool Rev., (NATL-RE), 5.00%, 10/01/23 ............. A1, A+ 2,725,000 2,915,914 ------------ 3,926,684 ------------ OHIO -- 3.2% Dayton-Montgomery Cnty., OH Port. Auth. Dev. Rev. Dayton Regl. Bond Ser. A, 5.13%, 05/15/22(2) ........................................................... NR, NR 2,315,000 1,844,916 Lorain Cnty., OH Hosp. Rev. Bonds, (Catholic Healthcare Partners), Ser. A, 5.63%, 10/01/16 .............................................................. A1, AA- 500,000 518,560 Lorain Cnty., OH Hosp. Rev. Bonds (Catholic Healthcare Partners) Ser. A, 5.63%, 10/01/13 .............................................................. A1, AA- 800,000 841,568 Ohio State Air Quality Dev. Auth. Rev. (Pollution Control Proj.) Ser. D, 4.75%, 08/01/29++ ............................................................ Baa1, BBB 1,250,000 1,314,125 ------------ 4,519,169 ------------ OREGON -- 0.2% Portland, OR Urban Renewal & Redev. Ref. Bonds, Ser. A, (FGIC), 5.00%, 06/15/17 .............................................................. A3, NR 320,000 337,261 ------------ 337,261 ------------ PENNSYLVANIA -- 6.0% Cumberland Cnty., Municipal Auth. Ser. Q1- AI, 2.75%, 11/01/39++ ............... NR, A 400,000 402,372 Pennsylvania State Economic Dev. Fin. Auth. Facs. Rev. (Exelon Generation), 5.00%, 12/01/42++ ............................................................ A3, BBB 600,000 628,866 Pennsylvania State Higher Educ. Facs. Auth. Rev. Bonds (Philadelphia College of Osteopathic Medicine), 5.00%, 12/01/16 .............. NR, A+ 1,560,000 1,606,472 Pennsylvania State Higher Educ. Facs. Auth. Rev. Bonds, (Philadelphia College of Osteopathic Medicine), 5.00%, 12/01/17 .............. NR, A+ 500,000 508,865 The accompanying notes are an integral part of the financial statements. 37
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ------------ PENNSYLVANIA -- (CONTINUED) Pennsylvania State Pub. School Bldg. Auth. Rev. Bonds, (FGIC), 5.25%, 11/01/15 .............................................................. NR, AA $ 545,000 $ 595,505 Philadelphia, PA Airport Rev. Bonds Ser. A, (NATL-RE), 5.00%, 06/15/18(2) ...... A2, A+ 600,000 594,690 Philadelphia, PA Airport Rev. Bonds, (FGIC), Ser. B, 5.50%, 06/15/18(2) ........ A2, A+ 1,350,000 1,376,784 Philadelphia, PA Auth. For Indl. Dev. Rev. Bonds Ser. A, 4.90%, 05/01/17 ....... NR, BBB- 285,000 255,825 Philadelphia, PA G.O. Bonds, (CIFG), 5.00%, 08/01/23 ........................... Baa1, BBB 1,000,000 995,090 Philadelphia, PA Redev. Auth. For Neighborhood Transformation. Rev. Bonds Ser. A, 5.50%, 04/15/20 ...................................................... Baa1, A 925,000 925,111 Philadelphia, PA School District Ref. Bonds, Ser. A, (AMBAC), 5.00%, 08/01/17 .............................................................. Aa3, A+ 600,000 624,810 Pittsburgh, PA Stadium Auth. Lease Rev. Bonds, 6.50%, 04/01/11 ................. Aaa, AAA 55,000 55,726 ------------ 8,570,116 ------------ PUERTO RICO -- 0.4% Puerto Rico Pub. Impt. Ser. A, 5.50%, 07/01/21 ................................. Baa3, BBB- 250,000 253,613 The Childrens Trust Fund, Puerto Rico, Tobacco Settlement Rev. Bonds, 5.75%, 07/01/14 .............................................................. NR, AAA 250,000 256,600 ------------ 510,213 ------------ SOUTH DAKOTA -- 0.7% South Dakota Health & Educ. Fac. Auth., 5.00%, 11/01/12 ........................ A1, AA- 1,000,000 1,061,720 ------------ 1,061,720 ------------ TEXAS -- 9.9% Cedar Park, TX Utility Sys. Rev. Bonds, (NATL-RE), 5.00%, 08/15/18 ............. A2, AA 400,000 422,352 Corpus Christi, TX Utility Sys. Rev. Bonds, Ser. A, (AMBAC), 5.00%, 07/15/18 ... A2, A+ 500,000 523,045 Dallas-Fort Worth International Airport Fac. Improv. Corp Jt Ser A, (FGIC), 6.00%, 11/01/28(2) ........................................................... A1, A+ 5,000,000 5,009,150 Howard Cnty., TX Jr. College District, (AMBAC), 5.00%, 02/15/26 ................ NR, A 2,810,000 2,946,791 Katy, TX Indpt. School Dist. G.O. Bonds, (PSF-GTD), 5.50%, 02/15/15 ............ Aaa, AAA 175,000 182,564 North Texas Tollway Auth. First Tier Ser. L-2, 6.00%, 01/01/38++ ............... A2, A- 1,900,000 2,065,034 North Texas Tollway Auth., 5.00%, 01/01/42++ ................................... A2, A- 2,000,000 2,125,780 Port Arthur, TX Independent School District G.O. Bonds, (AMBAC), 5.00%, 02/15/22 .............................................................. A3, A 170,000 178,561 The accompanying notes are an integral part of the financial statements. 38
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ MOODY'S/S&P PRINCIPAL VALUE RATINGS+ AMOUNT (NOTE 2) ----------- ---------- ------------ TEXAS -- (CONTINUED) Tarrant Cnty., TX Cultural Educ. Fac. Finance Corp. Ser. A, 5.00%, 02/15/20 .... Aa3, AA- $ 100,000 $ 102,154 Tarrant Cnty., TX Cultural Educ. Fac. Finance Corp. Ser. A, 5.00%, 02/15/22 .... Aa3, AA- 345,000 348,681 Univ. of Texas Ref. Rev. Bonds, Ser. A, 6.25%, 07/01/13 ........................ Aaa, AAA 60,000 65,074 Univ. of Texas Ref. Rev. Bonds, Ser. A, 6.25%, 07/01/13 ........................ Aaa, AAA 85,000 97,878 ------------ 14,067,064 ------------ UTAH -- 0.4% Salt Lake Cnty., UT Sales Tax Rev. Bonds, 5.00%, 08/01/17 ...................... NR, AAA 500,000 556,080 ------------ 556,080 ------------ WASHINGTON -- 6.5% Klickitat Cnty., WA Public Utility District No. 1 Ser. B, (FGIC), 5.25%, 12/01/22 .............................................................. A3, NR 2,000,000 2,062,920 Seattle, WA Muni. Light & Power Ref. Rev. Bonds, (FSA), 5.00%, 07/01/10 ........ Aa2, AAA 350,000 350,808 Washington Health Care Fac. Auth. Group Health Coop., (RADIAN), 5.00%, 12/01/25 .............................................................. NR, BBB+ 1,000,000 899,320 Washington Health Care Fac. Auth., (RADIAN), 5.00%, 12/01/23 ................... NR, BBB+ 1,570,000 1,444,117 Washington State Econ. Dev. Fin. Auth. Biomedical Resh Properties II, (NATL-RE), 5.25%, 06/01/21 .............................................................. Aa2, AA+ 1,000,000 1,075,440 Washington State Econ. Dev. Fin. Auth. Biomedical Resh Properties II, (NATL-RE), 5.00%, 06/01/23 .............................................................. Aa2, AA+ 3,240,000 3,441,982 ------------ 9,274,587 ------------ WEST VIRGINIA -- 0.2% West Virginia State Bldg. Ref. Rev. Bonds, Ser. A, (AMBAC), 5.38%, 07/01/18 .... NR, NR 250,000 267,105 ------------ 267,105 ------------ WISCONSIN -- 0.2% Sheboygan, WI Pollution Ctrl. Rev. Bonds, (FGIC), 5.00%, 09/01/15 .............. A2, A- 200,000 218,256 Wisconsin State Trans. Rev. Ref. Bonds, Ser.1, (AMBAC), 5.75%, 07/01/14 ........ Aa3, AA+ 105,000 115,254 ------------ 333,510 ------------ TOTAL MUNICIPAL BONDS (COST $133,789,215) ................................................................. 134,312,428 ------------ The accompanying notes are an integral part of the financial statements. 39
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- MUNICIPAL BOND FUND - ------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE SHARES (NOTE 2) ---------- ------------ SHORT-TERM INVESTMENTS -- 4.6% BlackRock Liquidity Funds MuniCash Portfolio - Institutional Series .......................... 3,267,299 $ 3,267,299 BlackRock Liquidity Funds MuniFund Portfolio - Institutional Series .......................... 3,267,299 3,267,299 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $6,534,598) ............................................................ 6,534,598 ------------ TOTAL INVESTMENTS -- 98.9% (COST $140,323,813)(1) ........................................................... 140,847,026 OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.1% ............................................................... 1,505,142 ------------ NET ASSETS -- 100.0% ........................................................................................ $142,352,168 ============ - ---------- + Although certain securities are not rated (NR) by either Moody's or S&P, they have been determined to be of comparable quality to investment grade securities by the investment adviser. ++ Denotes a Variable or Floating Rate Note. Variable or Floating Rate Notes are instruments whose rates change periodically. The rates shown are the interest rates as of December 31, 2009. (1) The cost for federal income tax purposes is $140,323,813. At December 31, 2009, net unrealized appreciation was $523,213. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $2,788,532 and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $2,265,319. (2) Security is subject to the Alternative Minimum Tax. AMBAC - Credit rating enhanced by guaranty or insurance from AMBAC Indemnity Corp. CIFG - Credit rating enhanced by guaranty or insurance from CIFG. FGIC - Credit rating enhanced by guaranty or insurance from Financial Guaranty Insurance Corp. FSA - Credit rating enhanced by guaranty or insurance from Financial Security Assurance. LOC - Letter of Credit PSF-GTD - Public School Fund Guarantee RADIAN - Credit rating enhanced by guaranty or insurance from Radian Asset Assurance, Inc. VRDB - Variable Rate Demand Bonds XLCA - Credit rating enhanced by guaranty or insurance from XL Capital Assurance. The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 LEVEL 3 TOTAL LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 PRICES INPUTS INPUTS ----------------- ---------- ------------ ------------ INVESTMENTS IN SECURITIES: Municipal Securities ...................................... $134,312,428 $ -- $134,312,428 $ -- Short-Term Investments .................................... 6,534,598 6,534,598 -- -- ------------ ---------- ------------ ---- Total ................................................... $140,847,026 $6,534,598 $134,312,428 $ -- ============ ========== ============ ==== The accompanying notes are an integral part of the financial statements. 40
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL STATEMENTS ============================================================================================================================ STATEMENTS OF ASSETS AND LIABILITIES December 31, 2009 (Unaudited) SHORT/ INTERMEDIATE- TERM BOND BROAD MARKET MUNICIPAL FUND BOND FUND BOND FUND ------------- ------------ ------------ ASSETS: Investment in securities, at fair value* ..................................... $200,039,099 $68,208,004 $140,847,026 Receivable for fund shares sold .............................................. 110,041 80,662 261,348 Interest and dividends receivable ............................................ 2,243,549 896,332 1,840,359 Other assets ................................................................. 17,914 16,351 16,148 ------------ ----------- ------------ Total assets ................................................................. 202,410,603 69,201,349 142,964,881 ------------ ----------- ------------ LIABILITIES: Obligation to return securities lending collateral ........................... 20,640,194 2,621,186 -- Payable for fund shares redeemed ............................................. 288,453 70,547 52,134 Dividend payable ............................................................. 602,457 250,144 463,590 Accrued advisory fee ......................................................... 54,244 19,898 42,458 Other accrued expenses ....................................................... 68,627 42,697 54,531 ------------ ----------- ------------ Total liabilities ............................................................ 21,653,975 3,004,472 612,713 ------------ ----------- ------------ NET ASSETS ................................................................... $180,756,628 $66,196,877 $142,352,168 ============ =========== ============ NET ASSETS CONSIST OF: Paid-in capital .............................................................. $173,527,581 $62,605,414 $141,165,739 Undistributed (distribution in excess of) net investment income .............. (38,695) 7,661 (105) Accumulated net realized gain on investments ................................. 416,127 91,052 663,321 Net unrealized appreciation of investments ................................... 6,851,615 3,492,750 523,213 ------------ ----------- ------------ NET ASSETS ................................................................... $180,756,628 $66,196,877 $142,352,168 ============ =========== ============ NET ASSETS BY SHARE CLASS: Institutional Shares ......................................................... $179,534,633 $63,778,636 $142,194,868 A Shares ..................................................................... 1,221,995 2,418,241 157,300 ------------ ----------- ------------ $180,756,628 $66,196,877 $142,352,168 ============ =========== ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING: ($0.01 par value, unlimited authorized shares): Institutional Shares ......................................................... 17,055,314 6,405,698 10,948,473 A Shares ..................................................................... 117,216 242,814 12,113 NET ASSET VALUE PER SHARE: Institutional Shares (net asset value (NAV), offering and redemption price) .. $ 10.53 $ 9.96 $ 12.99 ------------ ----------- ------------ A Shares (net asset value (NAV) and redemption price) ........................ $ 10.43 $ 9.96 $ 12.99 ------------ ----------- ------------ A Shares (public offering price -- NAV / 0.98) ............................... $ 10.64 $ 10.16 $ 13.26 ------------ ----------- ------------ - ---------- *Investments at cost ......................................................... $193,187,484 $64,715,254 $140,323,813 The accompanying notes are an integral part of the financial statements. 41
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF OPERATIONS For the Six-Month Period Ended December 31, 2009 (Unaudited) SHORT/ INTERMEDIATE- TERM BOND BROAD MARKET MUNICIPAL FUND BOND FUND BOND FUND ------------- ------------ ------------ INVESTMENT INCOME: Interest and dividends ...................................................... $4,003,806 $1,748,356 $3,088,837 Securities lending .......................................................... 7,363 1,453 -- ---------- ---------- ---------- Total investment income ..................................................... 4,011,169 1,749,809 3,088,837 ---------- ---------- ---------- EXPENSES: Advisory fees ............................................................... 304,128 116,722 253,160 Administration fees ......................................................... 13,324 5,108 11,083 Sub-administration and accounting fees ...................................... 60,487 32,975 57,689 Custody fees ................................................................ 10,789 5,977 9,443 Transfer agent fees ......................................................... 31,378 12,345 25,434 Distribution fees - A Shares ................................................ 1,014 2,432 202 Professional fees ........................................................... 24,849 21,507 21,094 Reports to shareholders ..................................................... 10,086 8,550 9,639 Registration fees ........................................................... 13,963 14,910 15,420 Trustees' fees .............................................................. 15,486 15,486 15,486 Compliance services ......................................................... 4,533 4,534 4,534 Other ....................................................................... 8,359 5,826 7,685 ---------- ---------- ---------- Total expenses before fee waivers ........................................... 498,396 246,372 430,869 Sub-administration and accounting fees waived ............................... -- (1,553) -- ---------- ---------- ---------- Total expenses, net ......................................................... 498,396 244,819 430,869 ---------- ---------- ---------- Net investment income ....................................................... 3,512,773 1,504,990 2,657,968 ---------- ---------- ---------- NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS: Net realized gain on investments ............................................ 776,369 427,767 869,585 Net change in unrealized appreciation on investments ........................ 1,669,564 1,481,684 3,203,959 ---------- ---------- ---------- Net gain on investments ..................................................... 2,445,933 1,909,451 4,073,544 ---------- ---------- ---------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ......................... $5,958,706 $3,414,441 $6,731,512 ========== ========== ========== The accompanying notes are an integral part of the financial statements. 42
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS SHORT/INTERMEDIATE-TERM BOND FUND --------------------------- FOR THE SIX-MONTH FOR THE PERIOD ENDED YEAR DECEMBER 31, ENDED 2009 JUNE 30, (UNAUDITED) 2009 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ..................................................................... $ 3,512,773 $ 6,552,228 Net realized gain from investments ........................................................ 776,369 2,155,369 Net change in unrealized appreciation on investments ...................................... 1,669,564 3,247,677 ------------ ------------ Net increase in net assets resulting from operations ......................................... 5,958,706 11,955,274 ------------ ------------ Distributions to shareholders from: Net investment income: Institutional Shares ................................................................... (3,497,667) (6,525,121) A Shares ............................................................................... (15,106) (12,357) Net realized gains: Institutional Shares ................................................................... (1,787,022) -- A Shares ............................................................................... (12,503) -- ------------ ------------ Total distributions .......................................................................... (5,312,298) (6,537,478) ------------ ------------ Fund share transactions (Note 6): Proceeds from shares sold: Institutional Shares ................................................................... 51,320,428 55,314,486 A Shares ............................................................................... 1,121,359 472,450 Cost of shares issued on reinvestment of distributions: Institutional Shares ................................................................... 3,087,325 3,661,748 A Shares ............................................................................... 21,745 12,610 Cost of shares redeemed: Institutional Shares ................................................................... (28,453,998) (77,816,543) A Shares ............................................................................... (264,356) (297,016) ------------ ------------ Net increase (decrease) in net assets from Fund share transactions ........................... 26,832,503 (18,652,265) ------------ ------------ Total increase (decrease) in net assets ...................................................... 27,478,911 (13,234,469) NET ASSETS: Beginning of Period ....................................................................... 153,277,717 166,512,186 ------------ ------------ End of Period ............................................................................. $180,756,628 $153,277,717 ============ ============ Distributions in excess of net investment income ............................................. $ (38,695) $ (38,695) ------------ ------------ The accompanying notes are an integral part of the financial statements. 43
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS BROAD MARKET BOND FUND --------------------------- FOR THE SIX-MONTH FOR THE PERIOD ENDED YEAR DECEMBER 31, ENDED 2009 JUNE 30, (UNAUDITED) 2009 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ..................................................................... $ 1,504,990 $ 3,124,382 Net realized gain from investments ........................................................ 427,767 1,355,233 Net change in unrealized appreciation on investments ...................................... 1,481,684 764,926 ----------- ------------ Net increase in net assets resulting from operations ......................................... 3,414,441 5,244,541 ----------- ------------ Distributions to shareholders from: Net investment income: Institutional Shares ................................................................... (1,463,846) (3,099,023) A Shares ............................................................................... (41,144) (21,010) Net realized gains: Institutional Shares ................................................................... (1,448,216) -- A Shares ............................................................................... (54,711) -- ----------- ------------ Total distributions .......................................................................... (3,007,917) (3,120,033) ----------- ------------ Fund share transactions (Note 6): Proceeds from shares sold: Institutional Shares ................................................................... 4,540,970 17,603,832 A Shares ............................................................................... 1,015,392 1,510,393 Cost of shares issued on reinvestment of distributions: Institutional Shares ................................................................... 2,060,992 2,144,905 A Shares ............................................................................... 84,167 20,491 Cost of shares redeemed: Institutional Shares ................................................................... (6,475,531) (27,125,297) A Shares ............................................................................... (134,157) (96,935) ----------- ------------ Net increase (decrease) in net assets from Fund share transactions ........................... 1,091,833 (5,942,611) ----------- ------------ Total increase (decrease) in net assets ...................................................... 1,498,357 (3,818,103) NET ASSETS: Beginning of Period ....................................................................... 64,698,520 68,516,623 ----------- ------------ End of Period ............................................................................. $66,196,877 $ 64,698,520 =========== ============ Undistributed net investment income .......................................................... $ 7,661 $ 7,661 ----------- ------------ The accompanying notes are an integral part of the financial statements. 44
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS MUNICIPAL BOND FUND --------------------------- FOR THE SIX-MONTH FOR THE PERIOD ENDED YEAR DECEMBER 31, ENDED 2009 JUNE 30, (UNAUDITED) 2009 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ..................................................................... $ 2,657,968 $ 5,045,406 Net realized gain from investments ........................................................ 869,585 232,979 Net change in unrealized appreciation (depreciation) on investments ....................... 3,203,959 (1,788,857) ------------ ------------ Net increase in net assets resulting from operations ......................................... 6,731,512 3,489,528 ------------ ------------ Distributions to shareholders from: Net investment income: Institutional Shares ................................................................... (2,655,203) (5,043,240) A Shares ............................................................................... (2,765) (2,166) Net realized gains: Institutional Shares ................................................................... (286,188) (473,383) A Shares ............................................................................... (317) (55) ------------ ------------ Total distributions .......................................................................... (2,944,473) (5,518,844) ------------ ------------ Fund share transactions (Note 6): Proceeds from shares sold: Institutional Shares ................................................................... 34,245,812 60,574,330 A Shares ............................................................................... -- 151,280 Cost of shares issued on reinvestment of distributions: Institutional Shares ................................................................... 948,323 2,449,676 A Shares ............................................................................... 33 480 Cost of shares redeemed: Institutional Shares ................................................................... (31,854,613) (60,192,503) A Shares ............................................................................... (11,356) -- ------------ ------------ Net increase in net assets from Fund share transactions ...................................... 3,328,199 2,983,263 ------------ ------------ Total increase in net assets ................................................................. 7,115,238 953,947 NET ASSETS: Beginning of Period ....................................................................... 135,236,930 134,282,983 ------------ ------------ End of Period ............................................................................. $142,352,168 $135,236,930 ============ ============ Distributions in excess of net investment income ............................................. $ (105) $ (105) ------------ ------------ The accompanying notes are an integral part of the financial statements. 45
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS ============================================================================================================================ The following tables include selected data for a share outstanding throughout each period and other performance information derived from the financial statements. The total returns in the tables represent the rate an investor would have earned or lost on an investment in the Funds (assuming reinvestment of all dividends and distributions). This information should be read in conjunction with the financial statements and notes thereto. FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ---------------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- -------- -------- -------- -------- SHORT/INTERMEDIATE-TERM BOND FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD .............. $ 10.46 $ 10.08 $ 9.88 $ 9.77 $ 10.23 $ 10.18 -------- -------- -------- -------- -------- -------- INVESTMENT OPERATIONS: Net investment income ............................ 0.22 0.45 0.45 0.45 0.41 0.37 Net realized and unrealized gain (loss) on investments ................................... 0.18 0.38 0.20 0.11 (0.44) 0.08 -------- -------- -------- -------- -------- -------- Total from investment operations .............. 0.40 0.83 0.65 0.56 (0.03) 0.45 -------- -------- -------- -------- -------- -------- DISTRIBUTIONS: From net investment income ....................... (0.22) (0.45) (0.45) (0.45) (0.41) (0.37) From net realized gains .......................... (0.11) -- -- -- (0.02) (0.03) -------- -------- -------- -------- -------- -------- Total distributions ........................... (0.33) (0.45) (0.45) (0.45) (0.43) (0.40) -------- -------- -------- -------- -------- -------- NET ASSET VALUE -- END OF PERIOD .................... $ 10.53 $ 10.46 $ 10.08 $ 9.88 $ 9.77 $ 10.23 ======== ======== ======== ======== ======== ======== TOTAL RETURN ........................................ 3.76%** 8.47% 6.65% 5.78% (0.25)% 4.50% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(1) Expenses: Including expense limitations ................. 0.57%* 0.60% 0.59% 0.57% 0.64% 0.65% Excluding expense limitations .................... 0.57%* 0.60% 0.59% 0.57% 0.65% 0.65% Net investment income ............................ 4.04%* 4.43% 4.45% 4.52% 4.13% 3.60% Portfolio turnover rate .......................... 17%** 34% 22% 57% 35% 33% Net assets at end of period (000 omitted) .................................... $179,535 $152,927 $166,361 $144,387 $132,913 $108,828 - ---------- * Annualized. ** Not annualized. (1) Prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I--Short/Intermediate Bond Series (the "Series"), and the portfolio turnover rate reflects investment activity of the Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. The accompanying notes are an integral part of the financial statements. 46
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ---------------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- -------- -------- -------- -------- SHORT/INTERMEDIATE-TERM BOND FUND -- A SHARES NET ASSET VALUE -- BEGINNING OF PERIOD .............. $10.36 $ 9.98 $ 9.78 $ 9.67 $10.13 $10.08 ------ ------ ------ ------ ------ ------ INVESTMENT OPERATIONS: Net investment income ............................ 0.20 0.42 0.42 0.42 0.38 0.34 Net realized and unrealized gain (loss) on investments ................................... 0.18 0.38 0.20 0.11 (0.44) 0.08 ------ ------ ------ ------ ------ ------ Total from investment operations .............. 0.38 0.80 0.62 0.53 (0.06) 0.42 ------ ------ ------ ------ ------ ------ DISTRIBUTIONS: From net investment income ....................... (0.20) (0.42) (0.42) (0.42) (0.38) (0.34) From net realized gains .......................... (0.11) -- -- -- (0.02) (0.03) ------ ------ ------ ------ ------ ------ Total distributions ........................... (0.31) (0.42) (0.42) (0.42) (0.40) (0.37) ------ ------ ------ ------ ------ ------ NET ASSET VALUE -- END OF PERIOD .................... $10.43 $10.36 $ 9.98 $ 9.78 $ 9.67 $10.13 ====== ====== ====== ====== ====== ====== TOTAL RETURN(1) ..................................... 3.64%** 8.25% 6.40% 5.53% (0.56)% 4.26% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(2) Expenses: Including expense limitations ................. 0.82%* 0.85% 0.84% 0.82% 0.89% 0.91% Excluding expense limitations ................. 0.82%* 0.85% 0.84% 0.82% 0.90% 6.46% Net investment income ............................ 3.73%* 4.21% 4.20% 4.26% 3.80% 3.36% Portfolio turnover rate .......................... 17%** 34% 22% 57% 35% 33% Net assets at end of period (000 omitted) ........... $1,222 $ 351 $ 151 $ 169 $ 164 $ 247 - ---------- * Annualized. ** Not annualized. (1) Total return does not reflect the impact of the maximum front-end sales load of 2.00%. If reflected, the return would be lower. (2) Prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I--Short/Intermediate Bond Series (the "Series"), and the portfolio turnover rate reflects investment activity of the Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. The accompanying notes are an integral part of the financial statements. 47
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ---------------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- -------- -------- -------- -------- BROAD MARKET BOND FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD .............. $ 9.89 $ 9.62 $ 9.57 $ 9.41 $ 10.07 $ 9.90 ------- ------- ------- ------- ------- ------- INVESTMENT OPERATIONS: Net investment income ............................ 0.24 0.44 0.45 0.44 0.41 0.39 Net realized and unrealized gain (loss) on investments ................................... 0.30 0.27 0.12 0.16 (0.54) 0.27 ------- ------- ------- ------- ------- ------- Total from investment operations .............. 0.54 0.71 0.57 0.60 (0.13) 0.66 ------- ------- ------- ------- ------- ------- DISTRIBUTIONS: From net investment income ....................... (0.24) (0.44) (0.45) (0.44) (0.41) (0.39) From net realized gains .......................... (0.23) -- (0.07) -- (0.12) (0.10) ------- ------- ------- ------- ------- ------- Total distributions ........................... (0.47) (0.44) (0.52) (0.44) (0.53) (0.49) ------- ------- ------- ------- ------- ------- NET ASSET VALUE -- END OF PERIOD .................... $ 9.96 $ 9.89 $ 9.62 $ 9.57 $ 9.41 $ 10.07 ======= ======= ======= ======= ======= ======= TOTAL RETURN ........................................ 5.37%** 7.56% 6.03% 6.47% (1.25)% 6.80% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(1) Expenses: Including expense limitations ................. 0.73%* 0.72% 0.71% 0.70% 0.72% 0.72% Excluding expense limitations ................. 0.73%* 0.72% 0.71% 0.70% 0.73% 0.73% Net investment income ............................ 4.52%* 4.51% 4.63% 4.60% 4.28% 3.89% Portfolio turnover rate .......................... 14%** 40% 26% 33% 31% 43% Net assets at end of period (000 omitted) ........... $63,779 $63,232 $68,505 $68,905 $66,729 $66,586 - ---------- * Annualized. ** Not annualized. (1) Prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I--Broad Market Bond Series (the "Series"), and the portfolio turnover rate reflects investment activity of the Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. The accompanying notes are an integral part of the financial statements. 48
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE FOR THE SIX-MONTH PERIOD PERIOD ENDED DECEMBER 20, 2005(1) DECEMBER 31, FOR THE YEARS ENDED JUNE 30, THROUGH 2009 ---------------------------- JUNE 30, (UNAUDITED) 2009 2008 2007 2006 ------------ -------- ------ -------- -------------------- BROAD MARKET BOND FUND -- A SHARES NET ASSET VALUE -- BEGINNING OF PERIOD .............. $ 9.89 $ 9.62 $ 9.58 $ 9.41 $ 9.67 ------ ------ ------ ------ ------ INVESTMENT OPERATIONS: Net investment income ............................ 0.22 0.42 0.42 0.42 0.21 Net realized and unrealized gain (loss) on investments ................................... 0.30 0.27 0.11 0.17 (0.26) ------ ------ ------ ------ ------ Total from investment operations .............. 0.52 0.69 0.53 0.59 (0.05) ------ ------ ------ ------ ------ DISTRIBUTIONS: From net investment income ....................... (0.22) (0.42) (0.42) (0.42) (0.21) From net realized gains .......................... (0.23) -- (0.07) -- -- ------ ------ ------ ------ ------ Total distributions ........................... (0.45) (0.42) (0.49) (0.42) (0.21) ------ ------ ------ ------ ------ NET ASSET VALUE -- END OF PERIOD .................... $ 9.96 $ 9.89 $ 9.62 $ 9.58 $ 9.41 ====== ====== ====== ====== ====== TOTAL RETURN(2) ..................................... 5.24%** 7.34% 5.64% 6.35% (0.55)%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations ................. 0.98%* 1.00% 0.96% 0.95% 0.97%* Excluding expense limitations ................. 0.98%* 1.01% 0.96% 0.95% 0.99%* Net investment income ............................ 4.23%* 4.33% 4.37% 4.39% 4.12%* Portfolio turnover rate .......................... 14%** 40% 26% 33% 31%(3) Net assets at end of period (000 omitted) ........... $2,418 $1,467 $ 11 $ 11 $ 10 - ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) Total return does not reflect the impact of the maximum front-end sales load of 2.00%. If reflected, the return would be lower. (3) Represents the portfolio turnover rate for the Fund for the year ended June 30, 2006. The accompanying notes are an integral part of the financial statements. 49
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ---------------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- -------- -------- -------- -------- MUNICIPAL BOND FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD .............. $ 12.64 $ 12.79 $ 12.75 $ 12.66 $ 13.00 $ 12.80 -------- -------- -------- -------- ------- ------- INVESTMENT OPERATIONS: Net investment income ............................ 0.24 0.50 0.48 0.43 0.40 0.38 Net realized and unrealized gain (loss) on investments ................................... 0.38 (0.10) 0.04 0.09 (0.34) 0.20 -------- -------- -------- -------- ------- ------- Total from investment operations .............. 0.62 0.40 0.52 0.52 0.06 0.58 -------- -------- -------- -------- ------- ------- DISTRIBUTIONS: From net investment income ....................... (0.24) (0.50) (0.48) (0.43) (0.40) (0.38) From net realized gains .......................... (0.03) (0.05) -- -- -- -- -------- -------- -------- -------- ------- ------- Total distributions ........................... (0.27) (0.55) (0.48) (0.43) (0.40) (0.38) -------- -------- -------- -------- ------- ------- NET ASSET VALUE -- END OF PERIOD .................... $ 12.99 $ 12.64 $ 12.79 $ 12.75 $ 12.66 $ 13.00 ======== ======== ======== ======== ======= ======= TOTAL RETURN ........................................ 4.90%** 3.27% 4.09% 4.15% 0.45% 4.56% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(1) Expenses: Including expense limitations ................. 0.60%* 0.62% 0.61% 0.65% 0.69% 0.75% Excluding expense limitations ................. 0.60%* 0.62% 0.61% 0.65% 0.69% 0.79% Net investment income ............................ 3.67%* 3.99% 3.70% 3.37% 3.12% 2.89% Portfolio turnover rate .......................... 27%** 19% 37% 56% 45% 38% Net assets at end of period (000 omitted) ........... $142,195 $135,073 $134,272 $113,118 $89,424 $65,818 - ---------- * Annualized. ** Not annualized. (1) Prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I--Municipal Bond Series (the "Series"), and the portfolio turnover rate reflects investment activity of the Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. The accompanying notes are an integral part of the financial statements. 50
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE FOR THE SIX-MONTH PERIOD PERIOD ENDED DECEMBER 20, 2005(1) DECEMBER 31, FOR THE YEARS ENDED JUNE 30, THROUGH 2009 ---------------------------- JUNE 30, (UNAUDITED) 2009 2008 2007 2006 ------------ ------- -------- ------- -------------------- MUNICIPAL BOND FUND -- A SHARES NET ASSET VALUE -- BEGINNING OF PERIOD .............. $12.64 $12.79 $12.75 $12.66 $12.82 ------ ------ ------ ------ ------ INVESTMENT OPERATIONS: Net investment income ............................ 0.23 0.47 0.45 0.40 0.20 Net realized and unrealized gain (loss) on investments ................................... 0.38 (0.10) 0.04 0.09 (0.16) ------ ------ ------ ------ ------ Total from investment operations .............. 0.61 0.37 0.49 0.49 0.04 ------ ------ ------ ------ ------ DISTRIBUTIONS: From net investment income ....................... (0.23) (0.47) (0.45) (0.40) (0.20) From net realized gains .......................... (0.03) (0.05) -- -- -- ------ ------ ------ ------ ------ Total distributions ........................... (0.26) (0.52) (0.45) (0.40) (0.20) ------ ------ ------ ------ ------ NET ASSET VALUE -- END OF PERIOD .................... $12.99 $12.64 $12.79 $12.75 $12.66 ====== ====== ====== ====== ====== TOTAL RETURN(2) ..................................... 4.76%** 3.04% 3.86% 3.92% 0.29%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations ................. 0.85%* 0.87% 0.86% 0.90% 0.94%* Excluding expense limitations ................. 0.85%* 0.87% 0.86% 0.90% 0.95%* Net investment income ............................ 3.42%* 3.50% 3.48% 3.15% 2.94%* Portfolio turnover rate .......................... 27%** 19% 37% 56% 45%(3) Net assets at end of period (000 omitted) ........... $ 157 $ 164 $ 11 $ 10 $ 10 - ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) Total return does not reflect the impact of the maximum front-end sales load of 2.00%. If reflected, the return would be lower. (3) Represents the portfolio turnover rate for the Fund for the year ended June 30, 2006. The accompanying notes are an integral part of the financial statements. 51
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) ============================================================================================================================ 1. DESCRIPTION OF THE FUND. WT Mutual Fund (the "Trust") is registered under the Investment Company Act of 1940, as amended, (the "1940 Act") as an open-end management investment company and was organized as a Delaware statutory trust on June 1, 1994. The Amended and Restated Agreement and Declaration of Trust permits the Board of Trustees (the "Trustees") to establish series of shares, each of which constitutes a series separate and distinct from the shares of other series. As of December 31, 2009, the Trust offered 12 series, three of which are included in these financial statements. The three series included are: Wilmington Short/Intermediate-Term Bond Fund ("Short/Intermediate-Term Bond Fund"), Wilmington Broad Market Bond Fund ("Broad Market Bond Fund") and Wilmington Municipal Bond Fund ("Municipal Bond Fund") (each, a "Fund" and collectively, the "Funds"). Each Fund offers two classes of shares: Institutional Shares and A Shares. All classes of shares have identical voting, dividend and liquidation rights. Institutional Shares are offered to retirement plans and other institutional investors. A Shares are available to all investors and are subject to a Rule 12b-1 distribution fee and a maximum front-end sales charge of 2.00%. 2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the significant accounting policies of the Funds: SECURITY VALUATION. Securities held by the Funds which are listed on a securities exchange and for which market quotations are available are valued at the last quoted sale price of the day, or, if there is no such reported sale, securities are valued at the mean between the most recent quoted bid and ask prices. Price information for listed securities is taken from the exchange where the security is primarily traded. Unlisted securities for which market quotations are readily available are valued at the most recent bid prices. Current market prices are generally not available for municipal securities; current market prices may also be unavailable for other types of fixed-income securities held by the Funds. To determine the value of those securities, the Funds may use a pricing service that takes into account not only developments related to the specific securities, but also transactions in comparable securities. Securities with a remaining maturity of 60 days or less are valued at amortized cost, which approximates market value, unless the Trustees determine that this does not represent fair value. Securities that do not have a readily available current market value are valued in good faith by using procedures adopted by the Trustees. When a Fund uses fair value pricing to determine NAV, securities will not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method that the Trustees believes accurately reflects fair value. The Funds' policy is intended to result in a calculation of a Fund's NAV that fairly reflects security values as of the time of pricing. However, fair values determined pursuant to a Fund's procedures may not accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing. The Funds utilize a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - Level 1 - quoted prices in active markets for identical securities - Level 2 - prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) - Level 3 - prices determined using significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) A summary of the inputs used to value the Funds' net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. 52
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ FEDERAL INCOME TAXES. Each Fund is treated as a separate entity for Federal income tax purposes and intends to continue to qualify as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its income to its shareholders. Therefore, no Federal income tax provision has been made. Tax positions taken or expected to be taken in the course of preparing the Funds' tax returns are evaluated to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions and has concluded that no provision for income tax is required in the Funds' financial statements. The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. SECURITY TRANSACTIONS AND INVESTMENT INCOME. Investment security transactions are accounted for on a trade date basis for financial reporting purposes. Each Fund uses the specific identification method for determining realized gains and losses on investments for both financial and Federal income tax reporting purposes. Interest income is recorded on the accrual basis and includes the amortization of premium and the accretion of discount. Realized gains (losses) on paydowns of mortgage-backed and asset-backed securities are recorded as an adjustment to interest income. The Funds record expenses as incurred. Common expenses of the Trust are allocated on a pro rata basis among the series based on relative net assets. CLASS ACCOUNTING. In calculating net asset value per share for each class, investment income, realized and unrealized gains and losses and expenses, other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Expenses relating to a specific class are charged directly to that class. DISTRIBUTIONS. Distributions from net investment income are declared daily and paid monthly. The Municipal Bond Fund determines the tax-exempt portion of its dividends uniformly based on the ratio of tax-exempt income and taxable income, if any, for the entire fiscal year. Distributions from net realized gains, if any, will be declared and paid annually. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3. ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES. Rodney Square Management Corporation ("RSMC"), a wholly owned subsidiary of Wilmington Trust Corporation, serves as the investment adviser to each Fund. For its services, RSMC receives a fee from each Fund at an annual rate of 0.35% of the Fund's first $1 billion of average daily net assets; 0.30% of the Fund's next $1 billion of average daily net assets; and 0.25% of the Fund's average daily net assets in excess of $2 billion. Wilmington Trust Investment Management, LLC ("WTIM"), also a wholly owned subsidiary of Wilmington Trust Corporation and under common control with RSMC, provides certain investment services, information, advice, assistance and facilities, and performs research, statistical and investment services pursuant to a sub-advisory agreement among the Trust, RSMC and WTIM. WTIM receives a sub-advisory fee from RSMC as agreed to from time to time with RSMC. 53
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ The Funds' Chief Compliance Officer is employed and compensated by RSMC. RSMC provides compliance services to the Funds pursuant to a Compliance Services Agreement. For these services, the Trust pays RSMC an annual fee equal to three-fourths of the Chief Compliance Officer's total compensation. The fees for these services for the six-month period ended December 31, 2009 are shown separately on the Statements of Operations. RSMC provides administrative services to the Funds pursuant to an Administration Agreement. For these services, the Trust pays RSMC a fee at the annual rate of 0.0185% of the Trust's first $2 billion of total aggregate daily net assets; 0.0175% of the Trust's next $2 billion of total aggregate daily net assets; 0.0125% of the Trust's next $2 billion of total aggregate daily net assets; and 0.0080% of the Trust's total aggregate daily net assets in excess of $6 billion. The fees paid to RSMC for these services for the six-month period ended December 31, 2009 are shown separately on the Statements of Operations. PNC Global Investment Servicing (U.S.), Inc. provides sub-administration, accounting, and transfer agent services pursuant to an agreement with RSMC and the Trust for which it receives fees directly from the Funds. COMPENSATION OF TRUSTEES AND OFFICERS. Except for the Funds' Chief Compliance Officer, Trustees and Officers of the Funds who are employees or officers of RSMC or WTIM do not receive any compensation from the Funds. Trustees of the Funds who are not employees or officers of RSMC or WTIM receive compensation and reimbursement of expenses from the Funds. Under a Deferred Compensation Plan (the "Plan") adopted August 15, 2002, disinterested Trustees may elect to defer receipt of all, or a portion, of their annual compensation. Deferred amounts are invested in shares of a series of the Trust and remain so until distributed in accordance with the Plan. Trustees' fees reflected in the accompanying financial statements include total compensation earned, whether elected to be paid in cash or deferred under the Plan. DISTRIBUTION FEES. The A Shares of each Fund have in place a distribution plan under Rule 12b-1 under the 1940 Act that allows each Fund to pay a fee for the sale and distribution of A Shares, and for services provided to A Shares shareholders. The 12b-1 Plan provides for a maximum distribution fee at an annual rate of 0.25% of each Fund's average daily net assets of the A Shares. Wilmington Trust Company ("WTC"), an affiliate of RSMC, serves as custodian to the Funds, and PFPC Trust Company serves as sub-custodian to the Funds. The Funds pay WTC for its services as custodian, and WTC pays PFPC Trust Company for its services as sub-custodian. The fees for these services for the six-month period ended December 31, 2009 are shown separately on the Statements of Operations. 4. INVESTMENT SECURITIES TRANSACTIONS. During the six-month period ended December 31, 2009, purchases and sales of investment securities (excluding short-term investments) were as follows: SHORT/INTERMEDIATE- BROAD MARKET MUNICIPAL TERM BOND FUND BOND FUND BOND FUND ------------------- ------------ ----------- Purchases ............................................................... $59,413,117 $8,946,442 $36,427,347 Sales ................................................................... 27,314,842 9,690,927 36,438,044 5. SECURITIES LENDING AGREEMENT. Short/Intermediate-Term Bond Fund and Broad Market Bond Fund may lend their securities pursuant to a securities lending agreement ("Lending Agreement") with PFPC Trust Company. Security loans made pursuant to the Lending Agreement are required at all times to be 54
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ secured by cash collateral at least equal to 102% of the market value of the securities loaned. Cash collateral received, pursuant to investment guidelines established by the Fund and approved by the Board of Trustees, is invested in short-term fixed income securities rated in the highest rating category by nationally recognized statistical rating organizations (or of comparable quality if unrated) with a maturity date of 397 days or less, including corporate obligations and money market mutual funds. All such investments are made at the risk of the Fund and, as such, the Fund is liable for investment losses. PFPC Trust Company and the borrower retain a portion of the earnings from the collateral investments, with the remainder being retained by the Fund. The Fund records securities lending income net of such allocations. In the event the borrower fails to return loaned securities, and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, PFPC Trust Company has agreed to pay the amount of the shortfall to the Fund, or at its discretion, replace the loaned securities. In the event of default or bankruptcy by PFPC Trust Company, realization and/or retention of the collateral may be subject to legal proceedings. 6. CAPITAL SHARE TRANSACTIONS. Transactions in shares of capital stock for the six-month period ended December 31, 2009 and the year ended June 30, 2009 for the Institutional Shares and A Shares were as follows: FOR THE SIX-MONTH PERIOD ENDED FOR THE YEAR ENDED DECEMBER 31, 2009 JUNE 30, 2009 ------------------------ ------------------------ INSTITUTIONAL INSTITUTIONAL SHARES A SHARES SHARES A SHARES ------------- -------- ------------- -------- SHORT/INTERMEDIATE-TERM BOND FUND Sold ................................................................. 4,816,221 106,244 5,401,137 46,654 Issued on reinvestment of distributions .............................. 289,544 2,058 359,531 1,242 Redeemed ............................................................. (2,669,519) (24,962) (7,652,694) (29,170) ---------- ------- ---------- ------- Net Increase (Decrease) .............................................. 2,436,246 83,340 (1,892,026) 18,726 ========== ======= ========== ======= BROAD MARKET BOND FUND Sold ................................................................. 448,147 99,505 1,823,737 154,974 Issued on reinvestment of distributions .............................. 203,456 8,305 222,413 2,095 Redeemed ............................................................. (638,353) (13,250) (2,775,963) (9,972) ---------- ------- ---------- ------- Net Increase (Decrease) .............................................. 13,250 94,560 (729,813) 147,097 ========== ======= ========== ======= MUNICIPAL BOND FUND Sold ................................................................. 2,642,161 -- 4,867,316 12,113 Issued on reinvestment of distributions .............................. 73,026 3 197,819 38 Redeemed ............................................................. (2,454,513) (885) (4,872,683) -- ---------- ------- ---------- ------- Net Increase (Decrease) .............................................. 260,674 (882) 192,452 12,151 ========== ======= ========== ======= 55
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ 7. FEDERAL TAX INFORMATION. Distributions to shareholders from net investment income and realized gains are determined in accordance with Federal income tax regulations, which may differ from net investment income and realized gains recognized for financial reporting purposes. Additionally, net short-term realized gains are treated as "ordinary income" for tax purposes. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on the tax treatment; temporary differences due to timing of recognition of income or gain do not require such reclassification. The tax character of distributions paid for the six-month period ended December 31, 2009 and the year ended June 30, 2009, was as follows: SHORT/INTERMEDIATE- BROAD MARKET MUNICIPAL TERM BOND FUND BOND FUND BOND FUND ------------------- ------------ ---------- SIX MONTHS ENDED DECEMBER 31, 2009 Ordinary income ...................................................... $3,512,773 $1,504,990 $ -- Tax-exempt income .................................................... -- -- 2,657,968 Long-term capital gains .............................................. 1,799,525 1,502,927 286,505 ---------- ---------- ---------- Total distributions .................................................. $5,312,298 $3,007,917 $2,944,473 ========== ========== ========== YEAR ENDED JUNE 30, 2009 Ordinary income ...................................................... $6,537,478 $3,120,033 $ 17,930 Tax-exempt income .................................................... -- -- 5,027,476 Long-term capital gains .............................................. -- -- 473,438 ---------- ---------- ---------- Total distributions .................................................. $6,537,478 $3,120,033 $5,518,844 ========== ========== ========== The components of accumulated earnings/(deficit) on a tax basis are determined at fiscal year-end. Accordingly, tax balances have not been determined as of December 31, 2009. For Federal income tax purposes, capital loss carryforwards are available to offset future capital gains. During the fiscal year ended June 30, 2009, Short/Intermediate-Term Bond Fund utilized $478,122 of capital loss carryforwards and Broad Market Bond Fund utilized $182,816 of capital loss carryforwards. At June 30, 2009, there were no capital loss carryforward balances. 8. CONTRACTUAL OBLIGATIONS. The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds' existing contracts and expects the risk of loss to be remote. 9. RECENT ACCOUNTING PRONOUNCEMENT. In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06, "Improving Disclosures about Fair Value Measurements." ASU 2010-06 amends FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, to require additional disclosures regarding fair value measurements. Certain disclosures required by ASU No. 2010-06 are effective for interim and annual reporting periods beginning after December 15, 2009, and other required disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact ASU No. 2010-06 will have on its financial statement disclosures. 56
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ 10. SUBSEQUENT EVENTS. Management has evaluated the impact of all subsequent events on the Funds through February 24, 2010, the date the financial statements were available for issuance, and has determined that the following subsequent events require disclosure in the financial statements. On February 2, 2010, The PNC Financial Services Group, Inc. ("PNC") entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") with The Bank of New York Mellon Corporation ("BNY Mellon"). Upon the terms and subject to the conditions set forth in the Stock Purchase Agreement, which has been approved by the board of directors of each company, PNC will sell to BNY Mellon (the "Stock Sale") 100% of the issued and outstanding shares of PNC Global Investment Servicing Inc., an indirect, wholly-owned subsidiary of PNC. The Stock Sale includes PNC Global Investment Servicing (U.S.) Inc., and PFPC Trust Company and is expected to close in the third quarter of 2010. 57
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- EVALUATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS ============================================================================================================================ At a meeting held on August 20, 2009, the Board of Trustees, including a majority of those trustees who are not "interested persons" as such term is defined in the 1940 Act ("Independent Trustees"), unanimously approved the continuation for an additional one-year period of the investment advisory agreement between WT Mutual Fund (the "Trust"), on behalf of the Wilmington Broad Market Bond Fund, Wilmington Municipal Bond Fund, and Wilmington Short/Intermediate-Term Bond Fund (each a "Fund"), and RSMC (the "RSMC Agreement"). The Trustees also unanimously approved the continuation of the sub-advisory agreement among the Trust on behalf of each of the Funds, RSMC and Wilmington Trust Investment Management, LLC ("WTIM") (the "WTIM Agreement" and with the RSMC Agreement, the "Agreements"), pursuant to which WTIM provides certain investment services, information, advice, assistance and facilities, research and statistical investment services. WTIM is a wholly owned subsidiary of Wilmington Trust Corporation and is under common control with RSMC. Employees of WTIM are also employees of RSMC. Prior to voting, the Independent Trustees reviewed the Agreements with RSMC, WTIM and legal counsel and received advice from such counsel regarding the legal standards to be followed in their consideration of the Agreements. The Independent Trustees also reviewed the Agreements in executive session with counsel at which time no representatives of RSMC or WTIM were present. Before meeting to determine whether to approve the continuation of the Agreements, the Board had the opportunity to review written materials provided by RSMC and WTIM. The materials generally included information regarding (i) services performed for the Trust and the Funds, (ii) the size and qualifications of RSMC's and WTIM's portfolio management staff, (iii) any potential or actual material conflicts of interest which may arise in connection with RSMC's and WTIM's management of a Fund, (iv) investment performance, (v) brokerage selection procedures, (vi) the procedures for allocating investment opportunities between a Fund and other clients, (vii) results of any independent audit or regulatory examination, including any recommendations or deficiencies noted, (viii) any litigation, investigation or administrative proceeding which may have a material impact on RSMC's or WTIM's ability to service the Funds, (ix) compliance with a Fund's investment objective, policies and practices (including its code of ethics), federal securities laws and other regulatory requirements, and (x) to the extent applicable, its proxy voting policies. RSMC and WTIM provided information regarding the advisory fees received and an analysis of these fees in relation to the delivery of services to each of the Funds, the costs of providing such services, the profitability of the firm in general and as a result of the fees received from the Funds and any other ancillary benefit resulting from RSMC's or WTIM's relationship with the Trust. The Board also received a memorandum from counsel to the Trust which outlined the duties of trustees when considering approval of an investment advisory agreement and related legal standards. In addition, the Board received a report prepared by two of the Trustees that considered, among other items, (i) investment performance; (ii) compliance and regulatory issues; (iii) operations; (iv) asset growth; (v) profitability; and (vi) expense control. The Board considered and weighed the above information based upon its accumulated experience in governing the Trust and working with RSMC on matters relating to the Trust. During its deliberations on whether to approve continuation of the Agreements, the Board considered many factors. The Board considered the nature, extent and quality of the services provided by RSMC and WTIM. The Trustees considered the services provided to each Fund by RSMC and WTIM as compared to services provided by other advisers which manage mutual funds with investment objectives, strategies and policies similar to those of the Funds. The Trustees concluded that the nature, extent and quality of the services provided by RSMC and WTIM to each Fund were appropriate and consistent with the terms 58
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- EVALUATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS -- CONTINUED ============================================================================================================================ of the Agreements, that the quality of those services was consistent with industry norms and that each Fund is likely to benefit from the continued provision of those services. They also concluded that RSMC and WTIM have sufficient personnel, with the appropriate education and experience, to serve each Fund effectively and have demonstrated their continuing ability to attract and retain qualified personnel. The Board considered the investment performance of each Fund, RSMC and WTIM. The Board reviewed and considered comparative performance data and each Fund's performance relative to other mutual funds with similar investment objectives, strategies and policies, its respective benchmark index and its Lipper peer group rankings. The Board also noted that it reviews and evaluates each Fund's investment performance on an on-going basis throughout the year. The Trustees considered the consistency of performance results and the short-term and long-term performance of each Fund. They concluded that the performance of each Fund, RSMC and WTIM is within an acceptable range of performance relative to other mutual funds with similar investment objectives, strategies and policies. The Board considered the costs of the services provided by RSMC and WTIM, the compensation and benefits received by RSMC and WTIM in providing services to the Funds, as well as RSMC's and WTIM's profitability. In addition, the Board considered any direct or indirect revenues received by affiliates of RSMC and WTIM. The Board recognized that RSMC's profitability is an important factor in providing service to the Funds. The Board was satisfied that RSMC's profits are sufficient to continue as a viable concern generally and as investment adviser of each Fund specifically. The Board concluded that RSMC's fees and profits derived from its relationship with the Trust in light of each Fund's expenses, are reasonable in relation to the nature and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies. The Trustees also concluded that the overall expense ratio of each Fund is reasonable, taking into account the size of the Fund, the quality of services provided by RSMC and WTIM, the investment performance of the Fund and the expense limitations agreed to by RSMC. The Trustees also considered the extent to which economies of scale would be realized relative to fee levels as each Fund grows, and whether the advisory fee levels reflect these economies of scale for the benefit of shareholders. The Board determined that economies of scale should be achieved at higher asset levels for each of the Funds for the benefit of shareholders due to certain break-points in the advisory fees. The Board recognized that the economies of scale achieved will be primarily due to the ability of the Trust and each Fund to spread its fixed costs across a larger asset base and not through negotiated breakpoints in the advisory fees. The Trustees considered whether any events have occurred that would constitute a reason for the Board not to approve continuation of the Agreements and concluded there were not. After consideration of all the factors, and taking into consideration the information presented during previous meetings of the Board, the Board determined that it would be in the best interests of each Fund and its shareholders to approve the continuation of the Agreements for an additional one-year period. In arriving at its decision, the Board did not identify any single matter as controlling, but made its determination in light of all the facts and circumstances. 59
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- TRUSTEES AND OFFICERS ============================================================================================================================ WT Mutual Fund (the "Trust") is governed by a Board of Trustees (the "Trustees"). The primary responsibility of the Trustees is to represent the interest of the Trust's shareholders and to provide oversight management of the Trust. The following table presents certain information regarding the Trustees and Officers of the Trust. Each person listed under "Interested Trustee" below is an "interested person" of the Trust's investment advisers, within the meaning of the Investment Company Act of 1940, as amended (the "1940 Act"). Each person who is not an "interested person" of the Trust's investment advisers or the Trust within the meaning of the 1940 Act is referred to as an "Independent Trustee" and is listed under such heading below. Unless specified otherwise, the address of each Trustee and Officer as it relates to the Trust is 1100 N. Market Street, Wilmington, DE 19890. The Statement of Additional Information for the Funds contains additional information about the Trustees and is available, without charge, upon request, by calling (800) 336-9970 or by visiting the Funds' website at www.wilmingtonfunds.com. INTERESTED TRUSTEES NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ---------------------- ------------------------------------------------ ------------------------------------------------ TED T. CECALA(2) Trustee Director, Chairman of the Board, and Chief Date of Birth: 1/49 Officer of Wilmington Trust Corporation and Shall serve at the pleasure of the Board and Wilmington Trust Company since 1996; Member of 12 Funds until successor is elected and qualified. the Board of Managers of Cramer Rosenthal Trustee since August 2007. McGlynn, LLC and Roxbury Capital Management, LLC (registered investment advisers). Wilmington Trust Corporation; Wilmington Trust Company. - ---------------------------------------------------------------------------------------------------------------------------- ROBERT J. CHRISTIAN(3) Trustee Retired since February 2006; Executive Vice Date of Birth: 2/49 President of Wilmington Trust Company from Shall serve until death, resignation or removal. February 1996 to February 2006; President of 12 Funds Trustee since October 1998, President and Rodney Square Management Corporation ("RSMC") Chairman of the Board from October 1998 to from 1996 to 2005; Vice President of RSMC 2005 January 2006. to 2006. FundVantage Trust (13 portfolios); Optimum Fund Trust (6 portfolios) (registered investment companies). (1) The "Fund Complex" currently consists of the Trust (12 funds) and CRM Mutual Fund Trust (8 funds). (2) Mr. Cecala is an "Interested Trustee" by reason of his position with Wilmington Trust Corporation and Wilmington Trust Company, each an affiliate of RSMC, an investment adviser to the Trust. (3) Mr. Christian is an "Interested Trustee" by reason of his previous employment with RSMC, the investment adviser to the Trust. 60
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- TRUSTEES AND OFFICERS -- CONTINUED ============================================================================================================================ INDEPENDENT TRUSTEES NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ---------------------- ------------------------------------------------ ------------------------------------------------ ROBERT ARNOLD Trustee Founder and co-manager, R.H. Arnold & Co., Inc. Date of Birth: 3/44 (financial consulting) since 1989. Shall serve until death, resignation or removal. 12 Funds Trustee since May 1997. First Potomac Realty Trust (real estate investment trust). - ---------------------------------------------------------------------------------------------------------------------------- DR. ERIC BRUCKER Trustee Professor of Economics, Widener University since Date of Birth: 12/41 July 2004; formerly Dean, School of Business Shall serve until death, resignation or removal. Administration of Widener University from 2001 12 Funds Trustee since October 1999. to 2004; Dean, College of Business, Public Policy and Health at the University of Maine from September 1998 to June 2001. None - ---------------------------------------------------------------------------------------------------------------------------- NICHOLAS GIORDANO Trustee and Chairman of the Board Consultant, financial services organizations Date of Birth: 3/43 from 1997 to present; Interim President, LaSalle Shall serve until death, resignation or removal. University from 1998 to 1999; President and 12 Funds Trustee since October 1998. Chief Executive Officer, Philadelphia Stock Exchange from 1981 to 1997. Kalmar Pooled Investment Trust; The RBB Fund, Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (industrial furnaces and ovens). - ---------------------------------------------------------------------------------------------------------------------------- LOUIS KLEIN, JR. Trustee Self-employed financial consultant since 1991. Date of Birth: 5/35 Shall serve until death, resignation or removal. CRM Mutual Fund Trust (registered investment 20 Funds Trustee since October 1999. companies); (8 portfolios) WHX Corporation (industrial manufacturer). 61
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- TRUSTEES AND OFFICERS -- CONTINUED ============================================================================================================================ INDEPENDENT TRUSTEES (CONTINUED) NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ---------------------- ------------------------------------------------ ------------------------------------------------ THOMAS LEONARD Trustee Retired since 2008; former Partner with Date of Birth: 2/49 PricewaterhouseCoopers (public accounting) from Shall serve until death, resignation or removal. May 1970 to June 2008. 12 Funds Trustee since July 2008. Alpha One Capital Partners, LLC (2 portfolios) (unregistered investment companies). 62
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- TRUSTEES AND OFFICERS -- CONTINUED ============================================================================================================================ EXECUTIVE OFFICERS POSITION(S) HELD WITH TRUST, PRINCIPAL OCCUPATION(S) TERM OF OFFICE AND DURING PAST FIVE YEARS, NAME, ADDRESS AND LENGTH OF TIME OTHER DIRECTORSHIPS DATE OF BIRTH SERVED HELD - ------------------------ ---------------------------------------------- ------------------------------------------------ JOHN J. KELLEY President & Chief Executive Officer President of Rodney Square Management 1100 North Market Street Corporation ("RSMC") since 2008; Vice President Wilmington, DE 19890 Shall serve at the pleasure of the Board and of Wilmington Trust Investment Management, LLC Date of Birth: 9/59 until successor is elected and qualified. ("WTIM") since 2005; Vice President of PNC Officer since September 2005. Global Investment Servicing (U.S.), Inc. (formerly PFPC Inc.) from January 2005 to July 2005; Vice President of Administration, 1838 Investment Advisors, LP from 1999 to 2005; Chief Compliance Officer, 1838 Investment Advisors, LP from 2004 to 2005. N/A - ---------------------------------------------------------------------------------------------------------------------------- CLAYTON M. ALBRIGHT Vice President Managing Director, Fixed Income Management, 1100 North Market Street Wilmington Trust since 2007; Director, Fixed Wilmington, DE 19890 Shall serve at the pleasure of the Board and Income Research and Portfolio Manager, Date of Birth: 9/53 until successor is elected and qualified. Wilmington Trust from 1996 to 2007; Vice Officer since October 1998. President, Rodney Square Management Corporation RSMC since 2001; Vice President of WTIM since 2006; Vice President, Wilmington Trust Company since 1997. N/A - ---------------------------------------------------------------------------------------------------------------------------- JOSEPH M. FAHEY, JR. Vice President Investment Adviser, WTIM since 2003; Vice 1100 North Market Street President, RSMC since 1992. Wilmington, DE 19890 Shall serve at the pleasure of the Board and Date of Birth: 1/57 until successor is elected and qualified. N/A Officer since November 1999. - ---------------------------------------------------------------------------------------------------------------------------- JOHN C. MCDONNELL Vice President, Chief Financial Officer & Director of Mutual Fund Administration, WTIM, 1100 North Market Street Treasurer since October 2005; Audit and Assurance - Wilmington, DE 19890 Senior, Deloitte (public accounting) from Date of Birth: 4/66 Shall serve at the pleasure of the Board and September 2004 to October 2005; Mutual Fund until successor is elected and qualified. Administration, 1838 Investment Advisors, LP Officer since November 2005. from March 1999 to September 2004. 63
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- TRUSTEES AND OFFICERS -- CONTINUED ============================================================================================================================ EXECUTIVE OFFICERS (CONTINUED) POSITION(S) HELD WITH TRUST, PRINCIPAL OCCUPATION(S) TERM OF OFFICE AND DURING PAST FIVE YEARS, NAME, ADDRESS AND LENGTH OF TIME OTHER DIRECTORSHIPS DATE OF BIRTH SERVED HELD - ------------------------ ---------------------------------------------- ------------------------------------------------ ANNA M. BENCROWSKY Vice President, Chief Compliance Officer & Chief Compliance Officer, WTIM since 2007; Vice 1100 North Market Street Anti-Money Laundering Officer President, WTIM since 2004; Vice President and Wilmington, DE 19890 Chief Compliance Officer, RSMC since 2004; Vice Date of Birth: 5/51 Shall serve at the pleasure of the Board and President and Chief Compliance Officer, 1838 until successor is elected and qualified; Investment Advisors, LP from 1999 to 2004. Officer since September 2004. N/A - ---------------------------------------------------------------------------------------------------------------------------- EDWARD W. DIFFIN, JR. Vice President & Secretary Director of Mutual Fund Regulatory 1100 North Market Street Administration of WTIM since November 2006; Wilmington, DE 19890 Shall serve at the pleasure of the Board and Coleman Counsel Per Diem from November 2005 to Date of Birth: 1/52 until successor is elected and qualified; November 2006; Vice President and Senior Counsel Officer since February 2007. of Merrill Lynch & Co., Inc. from 1994 to 2005. N/A 64
WILMINGTON FUNDS -- FIXED INCOME FUNDS - -------------------------------------- ============================================================================================================================ VOTING PROXIES ON FUND PORTFOLIO SECURITIES A description of the policies and procedures that the Trust used to determine how to vote proxies relating to securities held in the Trust's portfolios is available, without charge, by calling the Fund at (800) 336-9970 or on the SEC's website at http://www.sec.gov. Information regarding how the investment adviser voted proxies for the most recent twelve-month period ended June 30, 2009 is available, without charge, by calling the Fund at (800) 336-9970 or on the SEC's website listed above. 65
TRUSTEES OFFICERS Nicholas A. Giordano John J. Kelley Chairman of the Board President & Chief Executive Officer Robert H. Arnold John C. McDonnell Vice President, Chief Financial Officer & Treasurer Dr. Eric Brucker Edward W. Diffin Jr. Vice President & Secretary Ted T. Cecala Clayton M. Albright Robert J. Christian Vice President Louis Klein Jr. Joseph M. Fahey Jr. Vice President Thomas Leonard Anna M. Bencrowsky Vice President, Chief Compliance Officer & Anti-Money Laundering Officer CUSTODIAN Wilmington Trust Company 1100 North Market Street, Wilmington, DE 19890 INVESTMENT ADVISER AND ADMINISTRATOR Rodney Square Management Corporation 1100 North Market Street, Wilmington, DE 19890 SUB-ADMINISTRATOR, TRANSFER AGENT, AND ACCOUNTING AGENT PNC Global Investment Servicing (U.S.), Inc. 301 Bellevue Parkway, Wilmington, DE 19809 THIS SEMI-ANNUAL REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO SHAREHOLDERS AND TO OTHERS WHO HAVE RECEIVED A CURRENT PROSPECTUS OF THE WILMINGTON FIXED INCOME FUNDS - INSTITUTIONAL AND A SHARES. (WILMINGTON FUND LOGO) FIXED_Semi_12/09
SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS SEMI-ANNUAL REPORT | DECEMBER 31, 2009 SMALL-CAP STRATEGY LARGE-CAP INTERNATIONAL REAL ASSET | WILMINGTON | (GRAPHIC) FUNDS | | WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- ============================================================================================================================ CONTENTS page page President's Message ............................ 3 Financial Highlights .............................. 136 Expense Disclosure ............................. 17 Notes to Financial Statements ..................... 143 Disclosure of Portfolio Holdings ............... 19 Evaluation and Approval of Investment Advisory and Investments .................................... 21 Sub-Advisory Agreements ....................... 157 Financial Statements ........................... 128 Trustees and Officers ............................. 162 DESCRIPTION OF INDICES It is not possible to invest directly in an index. All indices represented are unmanaged. All indices assume the reinvestment of dividends and interest income unless otherwise noted. BARCLAYS CAPITAL U.S. TREASURY TIPS INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, publicly issued, U.S. Treasury inflation-protected securities that have at least 1 year remaining to maturity and have $250 million or more of outstanding face value. BARCLAYS CAPITAL WORLD GOVERNMENT INFLATION-LINKED BOND INDEX measures the performance of the major government inflation-linked bond markets. The index is designed to include only those markets in which a global government linker fund is likely to invest. To be included a market must have aggregate issuance of $4 billion or more and have minimum ratings of A3/A- for G7 and euro-zone issuers, Aa3/AA- otherwise. DEUTSCHE BANK LIQUID COMMODITY INDEX-OPTIMUM YIELD(TM) reflects the performance of a basket of futures contracts relating to six commodities and measures the value of this basket by tracking the closing prices of certain exchange traded contracts for the future delivery of each of these commodities, adjusted to reflect the relative weight of each commodity in the Index. The commodities included in the Index are: crude oil, heating oil, high grade primary aluminum, gold, corn and wheat. DOW JONES-UBS COMMODITY INDEX TOTAL RETURN(SM) is designed to be a diversified benchmark for commodities as an asset class, and reflects the returns that are potentially available through an unleveraged investment in the futures contracts on physical commodities comprising the Index plus the rate of interest that could be earned on cash collateral invested in specified Treasury Bills. The Index is currently composed of futures contracts on 19 physical commodities. FTSE NAREIT(R) EQUITY INDEX is market-value weighted, unmanaged index based upon the last closing price of the month for tax-qualified real estate investment trusts currently trading on the New York Stock Exchange, the NASDAQ National Market System and the American Stock Exchange. MSCI ALL COUNTRY WORLD EX-US INDEX (MSCI ACWI ex-US Index) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets excluding the U.S. market. As of June 2009, the MSCI ACWI ex-US Index consisted of 45 country indices comprising 22 developed and 23 emerging market country indices. MSCI EAFE(R) INDEX (Europe, Australasia, Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. & Canada. As of June 2009, the MSCI EAFE Index consisted of the following 21 developed market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. MSCI EAFE(R) GROWTH INDEX measures the performance of those MSCI EAFE companies with higher price-to-book ratios and higher forecasted growth values. MSCI EAFE(R) VALUE INDEX measures the performance of those MSCI EAFE companies with lower price-to-book ratios and lower forecasted growth values. 1
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- DESCRIPTION OF INDICES -- CONTINUED ============================================================================================================================ MSCI EMERGING MARKETS INDEX(SM) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. As of June 2009, the MSCI Emerging Markets Index consisted of the following 25 emerging market country indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Taiwan, Thailand, and Turkey. RUSSELL 3000(R) INDEX measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. RUSSELL 1000(R) INDEX measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. RUSSELL 1000(R) GROWTH INDEX measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 1000(R) VALUE INDEX measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. RUSSELL 2000(R) INDEX measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. RUSSELL 2000(R) GROWTH INDEX measures the performance of those Russell 2000 Index companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 2000(R) VALUE INDEX measures the performance of those Russell 2000 Index companies with lower price-to-book ratios and lower forecasted growth values. RUSSELL MIDCAP(R) INDEX measures the performance of the 800 smallest companies in the Russell 1000 Index, which represents approximately 25% of the total market capitalization of the Russell 1000 Index. STANDARD & POOR'S 500 INDEX (S&P 500(R)) is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. STANDARD & POOR'S 100(R) INDEX (S&P 100) is a subset of the S&P 500 and is comprised of the 100 leading U.S. stocks with exchange-listed options. Constituents of the S&P 100 are selected for sector balance and represent about 58% of the market capitalization of the S&P 500 and almost 45% of the market capitalization of the U.S. equity markets. THE S&P SMALLCAP 600(R) INDEX is a market-value weighted unmanaged index consisting of 600 stocks chosen by Standard and Poor's which comprise approximately 3% of the U.S. equities market. Measuring a segment of the market that is typically renowned for poor trading liquidity and financial instability, the companies meet specific inclusion criteria to ensure that they are investable and financially viable. S&P GLOBAL DEVELOPED PROPERTY INDEX, HEDGED, USD defines and measures the investable universe of publicly traded property companies in developed global markets. DEUTSCHE BANK LIQUID COMMODITY INDEX-OPTIMUM YIELD(TM) IS A TRADEMARK OF DEUTSCHE BANK AG. THE DOW JONES AIG COMMODITY INDEX(SM) IS A TRADEMARK OF DOW JONES & COMPANY, INC. FTSE IS A TRADE- AND SERVICE MARK OF LONDON STOCK EXCHANGE AND THE FINANCIAL TIMES LIMITED; NAREIT(R) IS A REGISTERED TRADEMARK OF NAREIT. MSCI EAFE(R) INDEX AND MSCI EMERGING MARKETS INDEX(SM) ARE REGISTERED TRADEMARKS OF MORGAN STANLEY CAPITAL INTERNATIONAL. RUSSELL 1000(R), RUSSELL 2000(R), RUSSELL 3000(R) AND RUSSELL MIDCAP(R) ARE TRADEMARKS OF THE FRANK RUSSELL COMPANY. S&P INDICES ARE A REGISTERED TRADEMARK OF STANDARD & POOR'S CORPORATION, INC., A DIVISION OF THE MCGRAW-HILL COMPANIES. 2
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE ============================================================================================================================ DEAR SHAREHOLDER: For the Wilmington Small-Cap Strategy Fund and the Multi-Manager Funds' semi-annual period, July 1, 2009 through December 31, 2009, virtually all major equity indices posted sizeable gains. For the six-month period, the Russell 3000, Russell 2000, and Russell 1000 Indices returned 23.2%, 23.9%, and 23.1%, respectively. For the twelve months ended December 31, 2009, these indices garnered returns of 28.3%, 27.2%, and 28.4%, respectively. ENCOURAGEMENT CAME FROM STOCK PERFORMANCE AND ECONOMIC SIGNALS We believe that strong equity markets and encouraging Gross Domestic Product (GDP) data make a case that the "Great Recession" of 2008-2009 ended back in Third Quarter 2009. The third quarter of 2009 showed an increase of 2.2% in real GDP, and a much stronger GDP figure (Fourth Quarter 2009's advanced estimate)--an increase of 5.7%--was released on January 29, 2010. We believe that it is, therefore, likely that a sustainable economic recovery of moderate amplitude has now begun. THE CHARACTERISTICS OF THIS ECONOMIC CYCLE WERE--AND CONTINUE TO BE--QUITE DIFFERENT A positive (if muted) consumer spending trend should be sustainable, based on continued gradual improvements on the employment front, a leveling out of consumer savings rates, and reluctance on the part of corporations to cut pay or benefits any further. Although the "Great Recession" will go down in the record books as the worst economic period since the Great Depression, there are positive forces today that are likely to keep our economy in a moderate but sustainable recovery. With capacity utilization at 71.8% and with productivity growth at 8.1%, the inflationary outlook is benign. Although there are signs that the weakness in the dollar may be over, it is likely to settle in at a fairly low level that will continue to support our exports and multi-national corporations' profit margins. Normally the deepest recessions have historically produced the sharpest recoveries, but the probability of a recovery in 2010 occurring at a quick pace seems low because of what we believe will prove to be persistent joblessness, at an above-average level, and because of ongoing credit restraint resulting from damage to the securitization markets. Unless the fixed-income markets reopen to the securitizing of lower-quality credit receivables such as credit cards, car loans, and other types of subprime loans, the lower middle-income segment in this country will not be able to leverage their income gains in the recovery. Although money flow data emanating from the mutual fund complex continues to show investors moving their invested assets from domestic stock funds, to bond and international equity funds, recent results from a January 2010 Citigroup investor survey indicates that more than 80% of professional investors say they are overweight equities, with less than 20% saying they are overweight fixed-income. Tops on the list of investor concerns are government policy missteps, international tensions/terrorism, and the fragile condition of commercial real estate. Investors are relatively less concerned about inflation/deflation, the weak dollar, and the profit cycle. Favored sectors continue to include energy, technology and materials, with more defensive consumer staples, telecommunications, and utilities viewed as least attractive. The survey indicates that investors favor growth stocks over value stocks, despite the fact that value has outperformed growth since the market bottom in March 2009 (with the total returns of the Russell 3000 Growth and 3000 Value Indices, 66.5% and 72.0%, respectively, substantiating the market performance). This isn't surprising given that profit margins reached unduly depressed levels in 2009 and have been in a strong recovery mode since then. This is a normal occurrence at economic troughs and one that favors value stocks and lower-quality stocks in general, as the market enters the first leg of recovery. 3
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ The worst sectors for 2009 were telecom and utilities, up 8.9% and 11.9%, respectively for the calendar year. The pivot point for 2009 was March 9, 2009. That's when the market bottomed and defensive sectors stopped working. At the same time, low-quality, high-beta stocks rose to lead the market, up from the bottom--as confidence rose that many of the companies were priced for possible bankruptcy during 2009. Many of these stocks rose from the ashes and produced returns in excess of 100% for the year. These types of companies are more heavily represented in the consumer discretionary, basic materials, technology, and financial sectors. LOOKING AHEAD Looking at the estimates for the S&P 500 for remainder of the Funds' fiscal year, which will end on June 30, 2010, we believe that the highest earnings growth rate expectations are found in energy, basic materials, and financials, all of which had large reductions in earnings in the last year--due to a retrenchment of commodity prices from the prior year or large charges from bad loans and investments. We believe that health care is the cheapest sector, based on expected 2010 P/E and its long-term growth expectations. The impact of government intervention into health care business models is expected to keep this sector cheap and provide opportunity, as the new healthcare bill takes shape--and looks to be less onerous than initially feared. MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE WILMINGTON SMALL-CAP STRATEGY FUND The Institutional Shares of the Wilmington Small-Cap Strategy Fund (the "Fund") returned 23.52% for the six months ended December 31, 2009, compared to a return of 23.90% for the Russell 2000 Index. The strategy of the Fund was revised on February 1, 2009, from active management by several outside managers to passive management by affiliated managers, to seek to exceed the performance of the Russell 2000 Index through tactical investment tilts and to maintain an expense ratio comparable to purely passive strategies. We expect that the returns of the Fund will closely track those of the Russell 2000 Index. The Fund began the third quarter of 2009 neutral to the Russell 2000 benchmark. At the end of July, the Fund implemented a 40% value / 60% growth style tilt. During August, the Russell 2000 Growth Index underperformed the Russell 2000 Value Index by 3.7%. In September, the Russell 2000 Growth Index outperformed the Russell 2000 Value Index by 1.5%. The impact of the tilt resulted in the Fund's performance lagging that of the Russell Index for the quarter ended September 30, 2009. At the end of September, the Fund was rebalanced to 50% value / 50% growth target. In keeping with the recommendations of the Wilmington Trust Investment Strategy Team ("IST"), Rodney Square Management Corporation ("RSMC") kept the style-tilt neutral to the Russell 2000 benchmark throughout the quarter ended December 31, 2009. Therefore, the Fund's performance was not impacted by tactical asset allocation calls. The Fund was essentially replicating the Russell 2000 and slightly outperformed the index during the fourth quarter of 2009. The Fund underperformed the index by 38 basis points for the six-month period ended December 31, 2009. At the end of December, the IST recommended maintaining the neutral stance on style. The Fund is currently positioned to track the Russell 2000 Core Index. The IST and Wilmington Trust Investment Research Team are evaluating additional tactics which RSMC can use to help improve the risk-adjusted return of the Fund. 4
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ The top ten holdings as of December 31, 2009, representing approximately 2.3% of total investments, were: PERCENT OF TOTAL PERCENT OF TOTAL 10 LARGEST HOLDINGS INVESTMENTS 10 LARGEST HOLDINGS INVESTMENTS - ---------------------- ---------------- --------------------- ---------------- Human Genome Sciences, Inc. 0.5% Highwoods Properties, Inc. 0.2% 3Com Corp. 0.2% Skyworks Solutions, Inc. 0.2% Tupperware Brand Corp. 0.2% Assured Guaranty, Ltd. 0.2% Solera Holdings, Inc. 0.2% Bally Technologies, Inc. 0.2% E*TRADE Group, Inc. 0.2% Atheros Communications, Inc. 0.2% The following table compares the performance of the Fund with that of the Russell 2000 Index and the S&P SmallCap 600 Index for the periods ended December 31, 2009. WILMINGTON SMALL-CAP STRATEGY FUND - ---------------------------------------------------------------------------------------------------------------------------- Average Annual Total Returns ---------------------------------------- SIX SINCE MONTHS 1 YEAR 5 YEARS INCEPTION(1) ------ ------ ------- ------------ Small-Cap Strategy Fund -- Institutional Shares 23.52% 24.91% -1.47% 4.31% Russell 2000 Index 23.90% 27.17% 0.51% 6.61% S&P SmallCap 600 Index 24.73% 25.57% 1.36% 7.63% - ---------- FUND EXPENSE RATIOS(2): INSTITUTIONAL SHARES - 1.54% (GROSS) & 0.27% (NET) - ---------------------------------------------------------------------------------------------------------------------------- - ---------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. TOTAL RETURNS SHOWN IN THE TABLE ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. TOTAL RETURNS WOULD BE LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN WAIVED AND/OR REIMBURSED. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY, IS NOT A DEPOSIT OF OR OTHER OBLIGATION OF OR GUARANTEED BY WILMINGTON TRUST OR ANY OTHER BANK OR ENTITY, AND IS SUBJECT TO RISKS INCLUDING A POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. SMALL COMPANY STOCKS MAY BE SUBJECT TO A HIGHER DEGREE OF MARKET RISK THAN THE SECURITIES OF MORE ESTABLISHED COMPANIES BECAUSE THEY TEND TO BE MORE VOLATILE AND LESS LIQUID. (1) THE SINCE INCEPTION RETURNS SHOWN FOR THE INSTITUTIONAL SHARES AND THE INDICES ARE FOR THE PERIOD JULY 1, 2003, COMMENCEMENT OF OPERATIONS FOR THE INSTITUTIONAL SHARES, THROUGH DECEMBER 31, 2009. (2) THE EXPENSE RATIOS SHOWN ARE FROM THE MOST RECENT PROSPECTUS DATED NOVEMBER 1, 2009 AND MAY DIFFER FROM THE EXPENSE RATIOS DISCLOSED IN THE FINANCIAL HIGHLIGHTS TABLE IN THIS REPORT. NET EXPENSES REDUCED BY CONTRACTUAL FEE WAIVER AGREEMENTS AND GROSS EXPENSES DO NOT REFLECT THE FEE WAIVERS. 5
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ WILMINGTON MULTI-MANAGER LARGE-CAP FUND The Institutional Shares of the Wilmington Multi-Manager Large-Cap Fund (the "Fund") returned 20.37% for the six months ended December 31, 2009, compared to a return of 23.11% for the Russell 1000 Index. The materials sector was the leading-performing sector in the period, posting returns close to +32.0%, followed closely by consumer discretionary. Utilities and telecom were the two worst-performing sectors, both returning less than +16.0% in the period. The Fund currently has an overweight allocation to mega-capitalization stocks and a corresponding underweight to mid-cap stocks. This decision had a negative impact on relative returns as the Russell Top 200 Index (proxy for mega-cap stocks) returned +21.4% in the period and trailed the performance of the Russell Midcap Index which returned +27.8%. The Fund began the period with an equally-weighted allocation between growth and value. From the end of July to the end of September, the Fund shifted its tactical allocation to 40% value and 60% growth. This decision detracted from excess returns as the Russell 1000 Value returned +9.3% in those two months as opposed to the Russell 1000 Growth Index which returned +6.4% in the same time period. Finally, from the end of September through December, the Fund reverted back to an equally-weighted allocation between growth and value. For the entire period, the Russell 1000 Value Index returned +23.2% and the Russell 1000 Growth Index returned +23.0%. At the end of December, the Fund shifted its tactical allocation to 70% growth and 30% value based on the publication of the Wilmington Trust 2010 Capital Markets Forecast. To accomplish this change, we reallocated assets from the large-cap value portfolio managed by Armstrong Shaw Associates, Inc., to an index replication portfolio, managed by Wilmington Trust Investment Management, LLC ("WTIM"). The Fund now employs two active managers: Montag & Caldwell, Inc. ("Montag") and First Quadrant, L.P. The Fund also uses WTIM to implement a passive strategy of acquiring large capitalization stocks and weighting the resulting portfolio using several fundamental, rather than market capitalization, metrics (the "Fundamentally Weighted Equity Strategy"). In addition, the Fund engages WTIM to manage an index replication portfolio based on the Russell 1000 Index. Finally, the Fund has investments in exchange traded funds (iShares Trust) based on the S&P 100 Index. The Fundamentally Weighted Equity Strategy returned +24.8% and exceeded its Russell 1000 Value Index benchmark by 1.6%. All three fundamental factors (free cash flow, dividends, and net income) outperformed the Russell 1000 Value Index in the quarter. The strategy's investment process resulted in an overweight allocation to technology stocks which had a positive effect on the portfolio's relative returns. The large-cap growth portfolio managed by Montag, returned +20.3% and trailed its benchmark, the Russell 1000 Growth Index, by 2.7%. Good stock selection in energy (overweight position in Cameron International, +47.7% in the period) was more than offset by weak stock selection in technology (overweight position in Research in Motion, -5.0% in the period), consumer discretionary (overweight position in TJX Inc., +16.9% in the period), and financials (overweight position in Charles Schwab, +8.0% in the period). Research in Motion has been a position held by Montag for several years. In the second quarter 2009, this stock was +64.9%. Montag reduced its position ahead of the company's second quarter earnings report as the stock had been strong and the position approached 5% of the portfolio. The position was reduced further following the earnings release, which disappointed investors' revenue expectations. The revenue shortfall was attributed to weak enterprise new subscriber growth and lower average selling prices. Montag increased the portfolio's position twice during the fourth quarter after the company 6
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ reported strong earnings results with above-consensus results and guidance. Montag believes that there is opportunity for price/earnings multiple expansion as the smartphone market is going mainstream, and the company continues to be well-positioned to lead the charge with a wide range of attractively priced, fully-featured devices and a growing number of consumer and business applications. The portfolio managed by the Fund's core quantitative manager, First Quadrant L.P., returned +20.6% and lagged the performance of its benchmark, the Russell 1000 Index, by 2.5%. The portfolio's overweight allocation to high book-to-price stocks was a slight headwind during the period. Stock selection was weak across most sectors as the names the portfolio owned were ones that had a lower amount of financial leverage and lower beta, areas which posted strong absolute returns but poor relative returns. The portfolio managed by the Fund's active value manager, Armstrong, returned +20.6% and trailed the Russell 1000 Value Index by 2.6%. The portfolio's overweight allocation to mega-capitalization companies had a negative impact on relative returns in the period. An overweight allocation in technology made positive relative contributions but was more than offset by weak stock selection in financials (overweight position in Bank of New York Mellon, -3.9% in the period) and consumer discretionary (overweight position in Comcast, +14.6% in the period). The Fund's small allocation to the iShares S&P 100 Index ETF had a slight negative impact on the Fund's relative performance as the ETF returned +20.9% in the period and lagged the Fund's benchmark by 2.2%. The Fund continues to emphasize quality (high profitability, low earnings variability) among the active managers it employs within the Fund and also the ETFs it owns. The top ten holdings as of December 31, 2009, representing approximately 17.0% of total investments, were: PERCENT OF TOTAL PERCENT OF TOTAL 10 LARGEST HOLDINGS INVESTMENTS 10 LARGEST HOLDINGS INVESTMENTS - ---------------------- ---------------- --------------------- ---------------- Hewlett-Packard Co. 2.1% Apple, Inc. 1.7% Exxon Mobil Corp. 1.9% Abbott Laboratories 1.6% iShares S&P 100 Index Fund 1.8% Wal-Mart Stores, Inc. 1.6% JPMorgan Chase & Co. 1.8% The Coca-Cola Co. 1.5% Google, Inc. - Class A 1.7% Procter & Gamble Co. 1.3% 7
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ The following table compares the performance of the Fund with that of the Russell 1000 Index and the S&P 500 Index for the periods ended December 31, 2009. WILMINGTON MULTI-MANAGER LARGE-CAP FUND - ---------------------------------------------------------------------------------------------------------------------------- Average Annual Total Returns ----------------------------------------------- SIX SINCE SINCE MONTHS 1 YEAR 5 YEARS INCEPTION(1) INCEPTION(2) ------ ------ ------- ------------ ------------ Large-Cap Fund -- Institutional Shares 20.37% 24.40% -0.55% 2.50% NA -- A Shares (with sales charge)(3) 16.36% 20.15% NA NA -3.18% -- A Shares at NAV 20.55% 24.45% NA NA -2.33% Russell 1000 Index 23.11% 28.43% 0.79% 4.60% -0.70% S&P 500 Index 22.59% 26.46% 0.42% 4.16% -0.88% - ---------- FUND EXPENSE RATIOS(4): INSTITUTIONAL SHARES - 1.20% (GROSS) & 1.02% (NET), A SHARES - 1.45% (GROSS) & 1.27% (NET) - ---------------------------------------------------------------------------------------------------------------------------- - ---------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. TOTAL RETURNS SHOWN IN THE TABLE ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. TOTAL RETURNS WOULD BE LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN WAIVED AND/OR REIMBURSED. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY, IS NOT A DEPOSIT OF OR OTHER OBLIGATION OF OR GUARANTEED BY WILMINGTON TRUST OR ANY OTHER BANK OR ENTITY, AND IS SUBJECT TO RISKS INCLUDING A POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. (1) THE SINCE INCEPTION RETURNS SHOWN FOR THE INSTITUTIONAL SHARES AND THE INDICES ARE FOR THE PERIOD JULY 1, 2003, COMMENCEMENT OF OPERATIONS FOR THE INSTITUTIONAL SHARES, THROUGH DECEMBER 31, 2009. (2) THE SINCE INCEPTION RETURNS SHOWN FOR THE A SHARES AND THE INDICES ARE FOR THE PERIOD DECEMBER 20, 2005, COMMENCEMENT OF OPERATIONS FOR THE A SHARES, THROUGH DECEMBER 31, 2009. (3) PERFORMANCE REFLECTS THE DEDUCTION OF THE 3.50% MAXIMUM FRONT-END SALES CHARGE. (4) THE EXPENSE RATIOS SHOWN ARE FROM THE MOST RECENT PROSPECTUS DATED NOVEMBER 1, 2009 AND MAY DIFFER FROM THE EXPENSE RATIOS DISCLOSED IN THE FINANCIAL HIGHLIGHTS TABLE IN THIS REPORT. NET EXPENSES REDUCED BY VOLUNTARY FEE WAIVER AGREEMENTS AND GROSS EXPENSES DO NOT REFLECT THE FEE WAIVERS. 8
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ WILMINGTON MULTI-MANAGER INTERNATIONAL FUND The Institutional Shares of the Wilmington Multi-Manager International Fund (the "Fund") returned 23.71% for the six months ended December 31, 2009, compared to a return of 24.16% for the MSCI All Country World ex-US Index ("MSCI ACWI ex-US") and 22.07% for the MSCI EAFE Index. It was a tale of two halves during the six month period. In the first three months, international equity markets maintained the torrid rally which started in early March as the MSCI ACWI ex-US returned +19.7%. These returns were aided by the relative weakness of the U.S. dollar as the overall impact of currency fluctuations helped to boost the dollar-denominated returns by 5% in the third quarter of 2009. The financial sector continued its rally and was the leading-performing sector. Australia and Greece were the best performing developed countries while Peru and Hungary were the best performing emerging markets. After two consecutive quarters of double-digit gains, international equity markets took a breather in the fourth quarter of calendar year 2009 and returned to a more normal return environment as the MSCI ACWI ex-US returned +3.7%. However at the country level, there was still a great variation in performance during the quarter ended December 31, 2009. Within developed countries, commodity-rich countries such as Canada, Australia, and Norway had above-average returns. European countries that have been dealing with large fiscal deficits such as Portugal, Italy, and Ireland posted below-average returns. Japan, where the economic recovery is also expected to be anemic, had negative returns in the fourth quarter as well. Within emerging markets, the Latin America region, led by commodity-rich nations such as Brazil and Chile, was the top regional performer for the quarter while the Far East region was the laggard. Among frontier markets, Kuwait and United Arab Emirates stood out for their double-digit drop in returns due to the Dubai debt restructuring crisis. For the entire six-month period, the Fund had a tactical allocation of 37% to emerging markets. The MSCI Emerging Markets Net Index returned +31.2% and outperformed the Fund's benchmark by 7.0%. The Fund's overweight allocation to emerging markets (the MSCI ACWI ex-US had a 22% allocation to emerging markets on December 31) had a positive effect on the Fund's relative performance. The Fund began the six-month period with a tactical allocation of 63% developed countries large-cap stocks. At end of October, the Fund was transitioned to a tactical allocation of 53% developed large-cap and 10% developed small-cap and maintained this allocation for the rest of the six-month period. This tactical allocation to developed small-caps had a negative effect on the Fund's excess returns during the period as developed small-caps underperformed the Fund's benchmark for the last two months (MSCI EAFE Small Cap Index returned +1.5% in November and December compared with +5.0% for the MSCI ACWI ex-US over the same time frame). The Fund started the six-month period with an equally-weighted allocation between developed countries large-cap value and growth. At the beginning of October, the Fund shifted to a tactical allocation within developed large-cap of 40% growth and 60% value. This allocation detracted from the Fund's relative returns as the MSCI ACWI ex-US Growth Index returned +4.3% over the last three months while the MSCI ACWI ex-US Value Index returned +0.7%. At the end of the six-month period, the Fund changed the tactical allocation within developed large-cap to 70% value and 30% growth as the International Large-Cap Value Versus Growth tactical allocation model showed a stronger value signal. The Fund employs six investment managers: Dimensional Fund Advisors LP ("DFA"), Goldman Sachs Asset Management, LP ("GSAM"), Artio Global Investment Management, LLC ("Artio"), Acadian Asset Management, LLC ("Acadian"), Parametric Portfolio Associates, LLC ("Parametric"), and Principal Global 9
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ Investors LLC ("Principal"). In addition, in the latter half of the period, the Fund invested in two developed country small-cap mutual funds, MFS International New Discovery Fund and Vanguard International Explorer Fund. We believe that manager selection, overall, had no material impact on the Fund's excess returns. The portfolio managed by DFA returned +24.8% and exceeded its MSCI EAFE Value Net Index benchmark. DFA's investment process to overweight high book/market value stocks and underweight low book/market growth stocks greatly benefited the portfolio while their bias to invest in smaller-capitalization stocks had a slight negative effect on the portfolio. DFA's decision to underweight Japan also had a positive influence on relative returns. The portfolio managed by GSAM returned +20.5% and trailed its MSCI EAFE Growth Net Index benchmark by 1.2%. GSAM's investment themes overall had a slight positive effect led by quality. However, weak stock selection in energy and consumer staples had a more meaningful impact on the portfolio's relative returns, as did having an underweight position in Rio Tinto. The portfolio managed by Artio returned +24.0% and exceeded its MSCI EAFE Net Index benchmark by 1.9%. The portfolio's allocation to emerging markets, particularly Brazil, Korea, Czech Republic and Russia, had the largest positive impact on results as did its underweight to Japan. From a sector perspective, an overweight to materials was of notable benefit given robust demand for commodities worldwide. Stock selection in technology and consumer discretionary sectors was also strong, while the portfolio's position in cash equivalents detracted from relative results as did stock selection in telecom. The portfolio managed by Acadian returned +19.5% and lagged its MSCI EAFE Net Index benchmark by 2.6%. Stock selection and country allocations detracted nearly equally from active returns. The portfolio lost notable relative value from a combination of overweighting and stock selection in Japan. The portfolio was also underweighted in materials, which was costly as commodities prices continued to recover during the period. On the positive side, the portfolio added moderate value with its stock selection in Germany. The portfolio managed by Parametric returned +30.8% and slightly trailed its MSCI Emerging Markets Net Index benchmark by 0.4%. The portfolio's structural underweight to China was the largest positive factor as the country returned +18.1%, far below the benchmark index. The portfolio's structural underweight position in Brazil was the largest negative influence on relative returns as the country returned +43.9%. Another negative factor was ownership of stocks in Kuwait and the United Arab Emirates. The portfolio managed by Principal returned +33.7% and outperformed its benchmark, the MSCI Emerging Markets Net Index, by 2.5%. Stock selection and asset allocation were both positive on a country and sector basis. The portfolio outperformed in consumer discretionary, telecom, and materials sectors whereas energy and technology contributed negatively to performance. On a relative basis, the portfolio's small active weighting positions in Russia, India, and South Korea contributed positively to performance for the period whereas China and Mexico detracted from performance. At the end of October, the Fund invested in two actively-managed developed country small-cap mutual funds--the MFS International New Discovery Fund, which returned +5.9% in the last two months of the period and outperformed the MSCI EAFE Small Cap Net Index by 4.4%, and the Vanguard International Explorer Fund which returned +3.2% in November and December and outperformed the MSCI EAFE Small Cap Net Index by 1.7%. The ownership of these two mutual funds combined to positively contribute to the Fund's excess returns. 10
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ The top ten holdings as of December 31, 2009, representing approximately 17.3% of total investments, were: PERCENT OF TOTAL PERCENT OF TOTAL 10 LARGEST HOLDINGS INVESTMENTS 10 LARGEST HOLDINGS INVESTMENTS - ---------------------- ---------------- ------------------------ ---------------- MFS International New Nestle SA 0.9% Discovery Fund 4.0% BHP Billiton, Ltd. 0.8% Vanguard International BP PLC 0.7% Explorer Fund 3.9% Allianz SE - Registered Shares 0.7% Vanguard Emerging HSBC Holdings PLC 0.7% Markets Fund ETF 3.2% Sanofi-Aventis SA 0.6% iShares MSCI EAFE Small Cap Index Fund 1.8% The following performance table compares the performance of the Fund with that of the MSCI ACWI ex-US Index and MSCI EAFE Index for the periods ended December 31, 2009. WILMINGTON MULTI-MANAGER INTERNATIONAL FUND - ---------------------------------------------------------------------------------------------------------------------------- Average Annual Total Returns ------------------------------------------ SIX SINCE MONTHS 1 YEAR 5 YEARS 10 YEARS INCEPTION(1) ------ ------ ------- -------- ------------ International Fund -- Institutional Shares 23.71% 37.15% 4.02% 0.06% NA -- A Shares (with sales charge)(2) 19.20% 31.91% NA NA 0.61% -- A Shares at NAV 23.43% 36.73% NA NA 1.51% MSCI ACWI ex-US 24.16% 41.45% 5.83% 2.71% 3.39% MSCI EAFE Index 22.07% 31.78% 3.54% 1.17% 1.22% - ---------- FUND EXPENSE RATIOS(3): INSTITUTIONAL SHARES - 1.44% (GROSS) & 1.42% (NET), A SHARES - 1.69% (GROSS) & 1.67% (NET) - ---------------------------------------------------------------------------------------------------------------------------- 11
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ - ---------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. TOTAL RETURNS SHOWN IN THE TABLE ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. TOTAL RETURNS WOULD BE LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN WAIVED AND/OR REIMBURSED. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY, IS NOT A DEPOSIT OF OR OTHER OBLIGATION OF OR GUARANTEED BY WILMINGTON TRUST OR ANY OTHER BANK OR ENTITY, AND IS SUBJECT TO RISKS INCLUDING A POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. INVESTING IN FOREIGN SECURITIES MAY INVOLVE CERTAIN ADDITIONAL RISK, INCLUDING, BUT NOT LIMITED TO, EXCHANGE RATE FLUCTUATIONS, LESS LIQUIDITY, GREATER VOLATILITY, LESS REGULATION AND MORE POLITICAL AND ECONOMIC INSTABILITY. (1) THE SINCE INCEPTION RETURN IS NOT PROVIDED FOR SHARE CLASSES THAT ARE MORE THAN TEN YEARS OLD. THE SINCE INCEPTION RETURNS SHOWN FOR A SHARES AND THE INDEX ARE FOR THE PERIOD DECEMBER 20, 2005, COMMENCEMENT OF OPERATIONS FOR THE A SHARES, THROUGH DECEMBER 31, 2009. (2) PERFORMANCE REFLECTS THE DEDUCTION OF THE 3.50% MAXIMUM FRONT-END SALES CHARGE. (3) THE EXPENSE RATIOS SHOWN ARE FROM THE MOST RECENT PROSPECTUS DATED NOVEMBER 1, 2009 AND MAY DIFFER FROM THE EXPENSE RATIOS DISCLOSED IN THE FINANCIAL HIGHLIGHTS TABLE IN THIS REPORT. 12
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ WILMINGTON MULTI-MANAGER REAL ASSET FUND For the six months ended December 31, 2009, the Institutional Shares of the Wilmington Multi-Manager Real Asset Fund (the "Fund") returned 11.49% compared to a return of 14.94% for the custom benchmark. The custom benchmark is a blend of 40% Barclays Capital World Government Inflation-Linked Bond ("ILB") Index (hedged, USD), 30% S&P Developed Property Index (hedged, USD), and 30% Dow Jones-UBS Commodity Index ("DJUBSCI"). During the period, the Barclays World Government ILB Index gained 5.0%, the S&P Developed Property Index gained 30.3%, and the DJUBSCI gained 13.7%. While the Fund's active managers added value during the period, it was not enough to offset the impact of the tactical asset allocation and the exposure to the Deutsche Bank Liquid Commodity Index-Optimum Yield ("DBLCI-OY"). The decision to remain tactically underweight in global real estate and overweight in global ILBs was the largest source of performance variance between the Fund and its long-term blended benchmark. The Fund had a 15% tilt toward global ILBs and away from global real estate securities in July. At the beginning of August, that tilt was somewhat reduced and the Fund moved to an allocation of 50% global ILBs, 20% global real estate, and 30% commodities for the remainder of the six-month period. The tactical overweight to ILBs and the tactical underweight to real estate was in place for three reasons: our proprietary, tactical real asset model preferred ILBs and commodities relative to real estate; we believed the more leveraged nature of real estate securities made their risk-adjusted returns less attractive; and finally, it was expected that the implementation of an aggressive stimulus plan in China could provide a significant tailwind to commodities--and therefore inflation--making ILBs a good risk-adjusted way to play the impact of the Chinese/global stimulus. Being underweight in global real estate securities served as a significant opportunity cost for the Fund, as public real estate fared the best of the Fund's three main exposures during the six-month period. The S&P Developed Property Index ended the period up 30.3%. Three major factors contributed to the rally of real estate securities: first, property companies moved decisively to repair their balance sheets as companies raised material amounts of equity; second, the debt markets began to open for property companies due in part to the equity raising, but also as a result of broader credit market improvements; and finally, investors began to anticipate the "buying opportunities" that these companies might have available to them should attractively priced real estate be brought to market. The portfolio managed by ING Clarion Real Estate Securities LP ("ING CRES"), one of the Fund's two global real estate managers, beat its global benchmark by approximately 300 basis points during the period. The portfolio benefited from strong stock selection in the U.S., Europe, and Japan. The portfolio managed by EII Realty Securities, Inc. ("EII"), the other global real estate manager, also fared relatively well, outpacing its global benchmark by 80 basis points. EII's portfolio was also helped by strong stock selection in Europe and Japan, as well as in Hong Kong. Global ILBs, as measured by the Barclays Capital World Government ILB Index, gained 5.0% during the second half of 2009. Global ILBs rose as real interest rates generally declined across all markets. The portfolio of global developed- and emerging-market ILBs managed by Pacific Investment Management Company LLC ("PIMCO") outperformed its blended benchmark by 0.8%. (PIMCO's blended benchmark consists of 85% Barclays World Government ILB Index and 15% Barclays Emerging Market Government ILB Index.) The PIMCO portfolio benefited from an underweight to Greek ILBs (which posted heavy losses amid credit downgrades), tactical exposure to emerging market currencies, and tactical exposure to corporate bonds. The portfolio of global, developed-market ILBs managed by Sinopia Asset Management ("Sinopia") also had good relative performance during the period. The Sinopia portfolio outperformed the 13
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ Barclays World Government ILB Index by 0.3%, due primarily to overweight positions in Japanese and U.S. ILBs. Commodities returned 13.7% in the last six months of the year, as measured by the DJUBSCI. Returns by sector varied widely during the period, with industrial metals faring the best (+40%) and livestock the worst (-6%). The PIMCO Commodity RealReturn Fund (the "PIMCO Fund") gained 22.2%, beating the DJUBSCI by 850 basis points. The PIMCO Fund invests in derivative securities whose performance is linked to the DJUBSCI, while the collateral portion of the portfolio is actively managed by investing primarily in domestic ILBs in an attempt to add incremental returns, along with additional inflation hedging. The PIMCO Fund's excess return, therefore, can be attributed to return for the collateral portfolio exceeding the return of T-Bills, which is the implied cost-of-carry for the index. The return of the Credit Suisse Commodity Return Strategy Fund, which has a similar structure as the PIMCO Fund but invests the collateral primarily in enhanced cash securities, also exceeded the DJUBSCI return during the period. The Credit Suisse Fund gained 14.1%, placing it 40 basis points ahead of the index. Also in the commodities space, the exposure to the DBLCI-OY detracted value from the Fund's overall returns. Exposure to this index is attained via investment in the PowerShares DB Commodity Index Tracking Fund, as well as investment in structured notes. During the period, the DBLCI-OY gained 10.3%, which lagged the DJUBSCI's gain of 13.7%. While the dynamic method of rolling expiring futures contracts that the DBLCI-OY employs added value over the period, it was not enough to offset the index's lack of exposure to copper (which gained +45%) and overweight allocation to wheat (which lost -9%). The top ten holdings as of December 31, 2009, representing approximately 38.9% of total investments, were: PERCENT OF TOTAL PERCENT OF TOTAL 10 LARGEST HOLDINGS INVESTMENTS 10 LARGEST HOLDINGS INVESTMENTS - ---------------------- ---------------- ---------------------- ---------------- PowerShares DB Commodity U.S. Treasury Inflation Index Tracking Fund 16.8% Indexed Notes, 1.88%, 7/15/15 2.0% Credit Suisse Commodity Return Japanese Government CPI Strategy Fund 4.6% Linked Bond, 1.40%, 3/10/18 1.9% PIMCO Commodity U.S. Treasury Inflation RealReturn Strategy Fund - Indexed Notes, 1.88%, 7/15/13 1.7% Institutional Shares 4.4% Italy Buoni Poliennali U.S. Treasury Inflation Del Tesoro, 2.35%, 9/15/19 1.3% Indexed Notes, 3.88%, 4/15/29 2.6% Deutsche Bank AG, London U.S. Treasury Inflation Branch, Structured Note Indexed Notes, 4.25%, 1/15/10 2.4% Linked to the DB Liquidity Commodity Index, 0.13%, 1/7/10 1.2% 14
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ The following table compares the performance of the Fund with that of the Barclays Capital World Government Inflation-Linked Bond Index ("Barclays GILB Index"), the Barclays Capital US Treasury Inflation Protected Securities Index ("Barclays US TIPS Index"), and the Fund's blended benchmark for the periods ended December 31, 2009. WILMINGTON MULTI-MANAGER REAL ASSET FUND - ---------------------------------------------------------------------------------------------------------------------------- Average Annual Total Returns ---------------------------------------------- SIX SINCE SINCE MONTHS 1 YEAR 5 YEARS INCEPTION(1) INCEPTION(2) ------ ------ ------- ------------ ------------ Real Asset Fund -- Institutional Shares 11.49% 12.90% 5.48% 10.36% NA -- A Shares (with sales charge)(3) 7.40% 8.57% NA NA 2.60% -- A Shares at NAV 11.29% 12.52% NA NA 3.51% Blended Index: GILB/S&P Dev Pr/DJ-UBS(4) 14.94% 21.26% 4.27% 7.21% 2.97% Barclays GILB Index 5.00% 8.83% 4.81% 5.13% 4.57% Barclays US TIPS Index 4.89% 11.41% 4.63% 5.16% 5.08% - ---------- FUND EXPENSE RATIOS(5): INSTITUTIONAL SHARES - 0.96% (GROSS & NET), A SHARES - 1.21% (GROSS & NET) - ---------------------------------------------------------------------------------------------------------------------------- - ---------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. TOTAL RETURNS SHOWN IN THE TABLE ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. TOTAL RETURNS WOULD BE LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN WAIVED AND/OR REIMBURSED. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. PERFORMANCE QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY, IS NOT A DEPOSIT OF OR OTHER OBLIGATION OF OR GUARANTEED BY WILMINGTON TRUST OR ANY OTHER BANK OR ENTITY, AND IS SUBJECT TO RISKS INCLUDING A POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. (1) THE SINCE INCEPTION RETURNS SHOWN FOR THE INSTITUTIONAL SHARES AND THE INDICES ARE FOR THE PERIOD JULY 1, 2003, COMMENCEMENT OF OPERATIONS FOR THE INSTITUTIONAL SHARES, THROUGH DECEMBER 31, 2009. (2) THE SINCE INCEPTION RETURNS SHOWN FOR THE A SHARES ARE FOR THE PERIOD DECEMBER 20, 2005, COMMENCEMENT OF OPERATIONS FOR THE A SHARES, THROUGH DECEMBER 31, 2009. THE SINCE INCEPTION RETURNS FOR THE INDICES ARE FOR THE PERIOD DECEMBER 31, 2005 THROUGH DECEMBER 31, 2009. (3) PERFORMANCE REFLECTS THE DEDUCTION OF THE 3.50% MAXIMUM FRONT-END SALES CHARGE. (4) THE BLENDED INDEX IS CURRENTLY COMPRISED OF A 40% WEIGHTING OF THE BARCLAYS GILB INDEX, 30% WEIGHTING OF THE S&P GLOBAL DEVELOPED PROPERTY INDEX, AND A 30% WEIGHTING OF THE DOW JONES-UBS COMMODITY INDEX TOTAL RETURN. PRIOR TO JANUARY 1, 2009, THE BLENDED INDEX WAS COMPRISED OF A 50% WEIGHTING OF THE BARCLAYS US TIPS INDEX, A 30% WEIGHTING OF THE FTSE NAREIT EQUITY INDEX AND A 20% WEIGHTING OF THE DOW JONES-AIG COMMODITY INDEX TOTAL RETURN. (5) THE EXPENSE RATIOS SHOWN ARE FROM THE MOST RECENT PROSPECTUS DATED NOVEMBER 1, 2009 AND MAY DIFFER FROM THE EXPENSE RATIOS DISCLOSED IN THE FINANCIAL HIGHLIGHTS TABLE IN THIS REPORT. 15
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- PRESIDENT'S MESSAGE -- CONTINUED ============================================================================================================================ We invite your comments and questions and thank you for your investment in the Wilmington Multi-Manager Funds. We look forward to reviewing our investment outlook and strategy with you in our next report to shareholders. Sincerely, /s/ John J. Kelley John J. Kelley President January 25, 2010 YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUNDS CAREFULLY BEFORE INVESTING. A PROSPECTUS WITH THIS AND OTHER INFORMATION MAY BE OBTAINED BY CALLING 800-336-9970 OR VISITING THE FUNDS' WEB SITE AT www.wilmingtonfunds.com. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING. MR. KELLEY'S COMMENTS REFLECT THE INVESTMENT ADVISER'S VIEWS GENERALLY REGARDING THE MARKET AND THE ECONOMY AND ARE COMPILED FROM THE INVESTMENT ADVISER'S RESEARCH AND FROM COMMENTS PROVIDED BY THE PORTFOLIO MANAGERS AND THE SUB-ADVISERS OF EACH OF THE FUNDS. THESE COMMENTS REFLECT OPINIONS AS OF THE DATE WRITTEN AND ARE SUBJECT TO CHANGE AT ANY TIME. DISTRIBUTED BY PROFESSIONAL FUNDS DISTRIBUTOR, LLC. SEE FINANCIAL HIGHLIGHTS. 16
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- EXPENSE DISCLOSURE (UNAUDITED) ============================================================================================================================ DISCLOSURE OF FUND EXPENSES The following Expense Tables are shown so that you can understand the impact of fees on your investment. All mutual funds have operating expenses. As a shareholder of a Fund, you incur ongoing costs, including management fees and other Fund expenses. A Fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The Expense Tables below illustrate your Fund's costs in two ways. - ACTUAL FUND RETURN AND EXPENSES. The first line of each table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during the period. - HYPOTHETICAL 5% RETURN AND EXPENSES. The second line of each table below provides information about hypothetical account values and hypothetical expenses based on the 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 the 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 tables 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, if any. Therefore, the second line of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The "Annualized Expense Ratio" reflects the actual expenses for the period indicated. FOR THE PERIOD JULY 1, 2009 TO DECEMBER 31, 2009 EXPENSE TABLES BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 7/1/09 12/31/09 RATIO PERIOD* --------- --------- ---------- -------- SMALL-CAP STRATEGY FUND - -- INSTITUTIONAL SHARES Actual Fund Return ......................................................... $1,000.00 $1,235.20 0.25% $1.41 Hypothetical 5% Return Before Expenses ..................................... 1,000.00 1,023.93 0.25 1.28 MULTI-MANAGER LARGE-CAP FUND - -- INSTITUTIONAL SHARES Actual Fund Return ......................................................... $1,000.00 $1,203.70 1.00% $5.55 Hypothetical 5% Return Before Expenses ..................................... 1,000.00 1,020.11 1.00 5.10 MULTI-MANAGER LARGE-CAP FUND - -- A SHARES Actual Fund Return ......................................................... $1,000.00 $1,205.50 1.25% $6.95 Hypothetical 5% Return Before Expenses ..................................... 1,000.00 1,018.82 1.25 6.38 17
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- EXPENSE DISCLOSURE (UNAUDITED) -- CONTINUED ============================================================================================================================ BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 7/1/09 12/31/09 RATIO PERIOD* --------- --------- ---------- -------- MULTI-MANAGER INTERNATIONAL FUND - -- INSTITUTIONAL SHARES Actual Fund Return ......................................................... $1,000.00 $1,237.10 1.41% $7.95 Hypothetical 5% Return Before Expenses ..................................... 1,000.00 1,018.01 1.41 7.20 MULTI-MANAGER INTERNATIONAL FUND - -- A SHARES Actual Fund Return ......................................................... $1,000.00 $1,234.30 1.66% $9.35 Hypothetical 5% Return Before Expenses ..................................... 1,000.00 1,016.74 1.66 8.47 MULTI-MANAGER REAL ASSET FUND - -- INSTITUTIONAL SHARES Actual Fund Return ......................................................... $1,000.00 $1,114.90 0.91% $4.85 Hypothetical 5% Return Before Expenses ..................................... 1,000.00 1,020.56 0.91 4.65 MULTI-MANAGER REAL ASSET FUND - -- A SHARES Actual Fund Return ......................................................... $1,000.00 $1,112.90 1.16% $6.18 Hypothetical 5% Return Before Expenses ..................................... 1,000.00 1,019.29 1.16 5.92 * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year, then divided by 365. 18
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- DISCLOSURE OF PORTFOLIO HOLDINGS (UNAUDITED) ============================================================================================================================ PORTFOLIO HOLDINGS DECEMBER 31, 2009 The following tables present a summary of the portfolio holdings of each of the Small-Cap Strategy Funds and the Wilmington Multi-Manager Funds as a percentage of its total investments, excluding short-term investments held as collateral for loaned securities. SMALL-CAP STRATEGY FUND MULTI-MANAGER INTERNATIONAL FUND Common Stocks Common Stocks Financials ....................................... 19.8% Financials ...................................... 22.6% Information Technology ........................... 18.6% Materials ....................................... 10.5% Industrials ...................................... 15.7% Energy .......................................... 8.5% Health Care ...................................... 14.4% Industrials ..................................... 8.5% Consumer Discretionary ........................... 13.9% Consumer Discretionary .......................... 7.8% Energy ........................................... 5.1% Consumer Staples ................................ 6.2% Materials ........................................ 4.7% Information Technology .......................... 5.9% Consumer Staples ................................. 3.4% Telecommunication Services ...................... 5.5% Utilities ........................................ 3.2% Health Care ..................................... 4.1% Telecommunication Services ....................... 1.1% Utilities ....................................... 3.4% Short-Term Investments ........................... 0.1% Exchange-Traded Funds ............................ 13.2% Rights ........................................... 0.0% Preferred Stocks ................................. 2.0% ----- Call Warrants .................................... 1.3% 100.0% Short-Term Investments ........................... 0.3% ===== Certificates ..................................... 0.2% MULTI-MANAGER LARGE-CAP FUND Rights ........................................... 0.0% Common Stocks Corporate Bonds .................................. 0.0% Information Technology ........................... 20.0% ----- Health Care ...................................... 13.4% 100.0% Consumer Staples ................................. 13.1% ===== Financials ....................................... 12.2% Energy ........................................... 10.9% Industrials ...................................... 9.7% Consumer Discretionary ........................... 9.3% Materials ........................................ 3.3% Utilities ........................................ 2.7% Telecommunication Services ....................... 2.4% Exchange-Traded Funds ............................. 2.3% Short-Term Investments ............................ 0.7% Rights ............................................ 0.0% ----- 100.0% ===== 19
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- DISCLOSURE OF PORTFOLIO HOLDINGS (UNAUDITED) -- CONTINUED ============================================================================================================================ MULTI-MANAGER INTERNATIONAL FUND MULTI-MANAGER REAL ASSET FUND COUNTRY ALLOCATION Inflation-Linked and Fixed Income Securities Japan ............................................ 9.8% Foreign Government Inflation-Linked United Kingdom ................................... 9.3% Securities .................................... 27.5% France ........................................... 4.8% U.S. Government Inflation-Linked Germany .......................................... 4.3% Securities .................................... 18.3% Switzerland ...................................... 3.8% Asset-Backed Securities ......................... 0.8% Australia ........................................ 3.6% Variable Rate Demand Notes ...................... 0.7% Brazil ........................................... 3.5% Corporate Bonds ................................. 0.6% Netherlands ...................................... 3.5% Exchange-Traded Funds ........................... 0.1% South Korea ...................................... 3.3% Real Estate Related Securities Hong Kong ........................................ 2.9% REITs Canada ........................................... 2.8% Retail ........................................ 5.0% Russia ........................................... 2.7% Diversified ................................... 2.3% Taiwan ........................................... 2.6% Specialized ................................... 1.8% China ............................................ 2.2% Office ........................................ 1.7% Mexico ........................................... 2.0% Residential ................................... 0.9% India ............................................ 1.9% Industrial .................................... 0.7% Spain ............................................ 1.7% Common Stock .................................... 7.5% Italy ............................................ 1.6% Commodity Related Securities South Africa ..................................... 1.6% Exchange-Traded Funds ........................... 16.9% Sweden ........................................... 1.3% Investment Companies ............................ 9.1% Indonesia ........................................ 1.2% Structured Note ................................. 1.2% Turkey ........................................... 1.2% Short-Term Investments ............................ 4.9% Luxembourg ....................................... 1.1% ----- Poland ........................................... 1.0% 100.0% Singapore ........................................ 1.0% ===== All other countries less than 1% ................. 12.2% Exchange-Traded Funds ............................ 13.1% ----- 100.0% ===== DISCLOSURE OF PORTFOLIO HOLDINGS The Trust files a complete schedule of investments with the SEC for its first and third fiscal quarters on Form N-Q. Form N-Q is available without charge by visiting the SEC's website at http://www.sec.gov, or it may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the Public Reference Room). 20
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ COMMON STOCK -- 100.0% DIVERSIFIED CONSUMER SERVICES -- (CONTINUED) CONSUMER DISCRETIONARY -- 13.9% Capella Education Co.*(1) .. 1,105 $ 83,206 AUTO COMPONENTS -- 0.9% ChinaCast Education American Axle & Corp.* ................... 2,820 21,319 Manufacturing Coinstar, Inc.*(1) ......... 2,558 71,061 Holdings, Inc.* .......... 3,545 $ 28,431 Corinthian Colleges, Amerigon, Inc.* ............ 1,877 14,903 Inc.*(1) ................. 6,531 89,932 ArvinMeritor, Inc.*(1) ..... 5,440 60,819 Grand Canyon Education, Cooper Tire & Rubber Inc.* .................... 1,164 22,128 Co.(1) 4,796 96,160 Jackson Hewitt Tax Dana Holding Corp.* ........ 10,590 114,796 Service, Inc.* ........... 2,188 9,627 Dorman Products, Inc.* ..... 796 12,465 K12, Inc.*(1) .............. 2,150 43,581 Drew Industries, Inc.* ..... 1,694 34,981 Learning Tree Exide Technologies* ........ 4,822 34,284 International, Inc.* ..... 720 8,597 Fuel Systems Solutions, Lincoln Educational Inc.*(1) ................. 1,136 46,849 Services Corp.* .......... 538 11,658 Hawk Corp. - Class A* ...... 1,060 18,667 Mac-Gray Corp.* ............ 380 3,914 Modine Manufacturing Matthews International Co.* ..................... 3,285 38,894 Corp. - Class A .......... 2,532 89,709 Raser Technologies, Pre-Paid Legal Services, Inc.*(1) ................. 3,873 4,803 Inc.*(1) ................. 535 21,978 Spartan Motors, Inc.(1) .... 2,789 15,702 Princeton Review, Inc.* .... 850 3,451 Standard Motor Regis Corp.(1) ............. 4,648 72,369 Products, Inc.* .......... 1,610 13,717 Sotheby's Holdings, Stoneridge, Inc.* .......... 488 4,397 Inc.(1) .................. 5,372 120,763 Superior Industries Steiner Leisure, Ltd.* ..... 1,135 45,128 International, Inc.(1) ... 2,166 33,140 Stewart Enterprises, Tenneco, Inc.* ............. 3,890 68,970 Inc. - Class A(1) ........ 6,349 32,697 Wonder Auto Technology, Universal Technical Inc.* .................... 1,244 14,629 Institute, Inc.* ......... 1,541 31,128 ------------ ------------ 656,607 837,705 ------------ ------------ AUTOMOBILES -- 0.0% HOTELS, RESTAURANTS & LEISURE -- 2.5% Winnebago Industries, AFC Enterprises, Inc.* ..... 2,475 20,196 Inc.* .................... 2,035 24,827 Ambassadors Group, Inc. .... 1,158 15,390 ------------ Ameristar Casinos, Inc. .... 1,915 29,165 DISTRIBUTORS -- 0.1% Bally Technologies, Audiovox Corp. - Inc.*(1) ................. 4,356 179,859 Class A* ................. 1,698 12,039 Benihana, Inc. - Core-Mark Holding Co., Class A* ................. 380 1,440 Inc.*(1) ................. 823 27,126 BJ's Restaurants, ------------ Inc.*(1) ................. 1,440 27,101 39,165 Bluegreen Corp.* ........... 1,037 2,510 ------------ Bob Evans Farms, Inc. ...... 2,406 69,654 DIVERSIFIED CONSUMER SERVICES -- 1.2% Buffalo Wild Wings, American Public Inc.*(1) ................. 1,422 57,264 Education, Inc.*(1) ...... 1,225 42,091 California Pizza Kitchen, Bridgepoint Education, Inc.* .................... 1,437 19,328 Inc.* .................... 890 13,368 The accompanying notes are an integral part of the financial statements. 21
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ HOTELS, RESTAURANTS & LEISURE -- (CONTINUED) HOTELS, RESTAURANTS & LEISURE -- (CONTINUED) CEC Entertainment, Inc.*.... 1,418 $ 45,263 Red Robin Gourmet Churchill Downs, Inc.(1).... 782 29,208 Burgers, Inc.* ........... 992 $ 17,757 CKE Restaurants, Inc........ 3,197 27,047 Ruby Tuesday, Inc.* ........ 5,220 37,584 Cracker Barrel Old Shuffle Master, Inc.* ...... 4,490 36,998 Country Store, Inc........ 1,772 67,318 Sonic Corp.* ............... 4,805 48,386 Denny's Corp.*.............. 8,090 17,717 Speedway Motorsports, DineEquity, Inc.*(1)........ 1,312 31,868 Inc. ..................... 1,091 19,223 Domino's Pizza, Inc.*....... 2,424 20,313 Texas Roadhouse, Inc.* ..... 3,975 44,639 Dover Downs Gaming & The Cheesecake Factory, Entertainment, Inc.(1).... 744 2,812 Inc.*(1) ................. 5,006 108,080 Einstein Noah Restaurant The Marcus Corp. ........... 1,587 20,345 Group, Inc.*.............. 704 6,920 The Steak N Shake Gaylord Entertainment Co.*(1) .................. 120 38,975 Co.*(1)................... 2,704 53,404 Town Sports International Great Wolf Resorts, Inc.*... 4,000 9,480 Holdings, Inc.* .......... 1,220 2,843 Interval Leisure Group, Universal Travel Group* .... 540 5,476 Inc.*..................... 3,210 40,029 Vail Resorts, Inc.*(1) ..... 2,420 91,476 Isle of Capri Casinos, Youbet.com, Inc.* .......... 850 2,439 Inc.*..................... 941 7,039 ------------ Jack in the Box, Inc.*...... 4,656 91,583 1,805,226 Krispy Kreme ------------ Doughnuts, Inc.*.......... 3,530 10,413 HOUSEHOLD DURABLES -- 1.2% Lakes Entertainment, American Greetings Inc.*..................... 4,470 11,220 Corp. - Class A(1) ....... 3,157 68,791 Landry's Restaurants, Beazer Homes USA, Inc.*(1).................. 885 18,842 Inc.*(1) ................. 2,370 11,471 Life Time Fitness, Blyth, Inc. ................ 590 19,895 Inc.*(1).................. 3,287 81,945 Brookfield Homes Luby's, Inc.*............... 2,591 9,535 Corp.*(1) ................ 30 240 McCormick & Schmick's Cavco Industries, Inc.* .... 405 14,548 Seafood Restaurants,...... CSS Industries, Inc. ....... 658 12,791 Inc.*..................... 1,920 13,363 Ethan Allen Interiors, Monarch Casino & Inc.(1) .................. 2,086 27,994 Resort, Inc.*............. 928 7,517 Furniture Brands Morgans Hotel Group International, Inc.*(1) .. 1,560 8,518 Co.*(1)................... 2,643 11,973 Helen of Troy, Ltd.* ....... 2,513 61,468 Multimedia Games, Inc.*..... 3,200 19,232 Hooker Furniture Corp. ..... 861 10,651 O' Charley's, Inc.*......... 2,050 13,427 Hovnanian Enterprises, Orient-Express Hotels, Inc. - Class A*(1) ....... 3,193 12,261 Ltd. - Class A*(1)........ 6,380 64,693 iRobot Corp.*(1) ........... 1,170 20,592 Papa John's International, La-Z-Boy, Inc.*(1) ......... 4,336 41,322 Inc.*..................... 1,906 44,524 M/I Homes, Inc.* ........... 1,164 12,094 Peet's Coffee & Tea, Meritage Homes Corp.*(1) ... 2,642 51,070 Inc.*(1).................. 920 30,664 National Presto PF Chang's China Bistro, Industries, Inc. ......... 372 40,633 Inc.*(1).................. 1,971 74,721 Ryland Group, Inc. ......... 3,631 71,531 Pinnacle Entertainment, Sealy Corp.*(1) ............ 4,245 13,414 Inc.*..................... 5,237 47,028 Skyline Corp. .............. 539 9,918 The accompanying notes are an integral part of the financial statements. 22
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ HOUSEHOLD DURABLES -- (CONTINUED) MEDIA -- (CONTINUED) Standard Pacific Corp.* .... 7,380 $ 27,601 Ascent Media Corp. - Tempur-Pedic Class A* ................. 1,040 $ 26,551 International, Inc.* ..... 5,598 132,281 Belo Corp. - Class A ....... 7,150 38,896 Tupperware Brands Corp. .... 4,669 217,435 Carmike Cinemas, Inc.* ..... 1,500 11,340 Universal Electronics, Cinemark Holdings, Inc.* .................... 898 20,851 Inc.(1) .................. 2,287 32,864 ------------ CKX, Inc.* ................. 4,326 22,798 907,370 Dolan Media Co.* ........... 2,109 21,533 ------------ E.W. Scripps Co. - INTERNET & CATALOG RETAIL -- 0.5% Class A* ................. 3,000 20,880 1-800-FLOWERS.COM, Fisher Communications, Inc. - Class A* .......... 3,112 8,247 Inc.* .................... 627 10,189 Blue Nile, Inc.* ........... 992 62,823 Global Sources, Ltd.* ...... 868 5,425 Drugstore.com, Inc.* ....... 4,810 14,863 Harte-Hanks, Inc. .......... 2,876 31,003 Gaiam, Inc. - Class A* ..... 1,143 8,790 Journal Communications, HSN, Inc.* ................. 2,740 55,321 Inc. - Class A ........... 3,830 14,899 NutriSystem, Inc. .......... 2,659 82,881 Knology, Inc.* ............. 2,699 29,554 Orbitz Worldwide, Inc.*(1) . 3,339 24,508 LIN TV Corp. - Class A* .... 2,930 13,068 Overstock.com, Inc.*(1) .... 1,162 15,757 Live Nation, Inc.* ......... 6,290 53,528 PetMed Express, Inc.(1) .... 2,237 39,438 Lodgenet Entertainment Shutterfly, Inc.* .......... 1,542 27,463 Corp.*(1) ................ 890 4,922 Stamps.com, Inc.* .......... 1,150 10,350 Martha Stewart Living Ticketmaster Omnimedia, Inc. - Entertainment, Inc.* ..... 2,100 25,662 Class A*(1) .............. 1,923 9,500 ------------ Mediacom Communications 376,103 Corp. - Class A* ......... 3,435 15,354 ------------ National Cinemedia, Inc. ... 3,262 54,051 LEISURE EQUIPMENT & PRODUCTS -- 0.7% Outdoor Channel Brunswick Corp.(1) ......... 6,221 79,069 Holdings, Inc.* .......... 1,170 6,786 Callaway Golf Co.(1) ....... 6,121 46,152 Primedia, Inc.(1) .......... 1,510 5,451 Eastman Kodak Co.*(1) ...... 22,150 93,473 RCN Corp.* ................. 2,778 30,141 JAKKS Pacific, Inc.*(1) .... 2,138 25,913 Reading International, Leapfrog Enterprises, Inc. - Class A* .......... 3,590 14,540 Inc.* .................... 2,887 11,288 Rentrak Corp.* ............. 1,030 18,200 Marine Products Corp.(1) ... 1,100 5,423 Scholastic Corp. ........... 1,986 59,242 Polaris Industries, Inc.(1) 2,487 108,508 Sinclair Broadcast Group, Pool Corp.(1) .............. 3,965 75,652 Inc. - Class A* .......... 4,028 16,233 RC2 Corp.* ................. 1,462 21,564 Valassis Communications, Smith & Wesson Inc.* .................... 3,980 72,675 Holdings Corp.* .......... 5,857 23,955 World Wrestling Steinway Musical Entertainment, Inc. - Instruments* ............. 568 9,037 Class A .................. 1,177 18,043 Sturm, Ruger & Co., ------------ Inc.(1) .................. 1,640 15,908 710,221 ------------ ------------ 515,942 MULTILINE RETAIL -- 0.3% ------------ 99 Cents Only Stores* ...... 3,630 47,444 MEDIA -- 1.0% Arbitron, Inc.(1) .......... 2,244 52,555 The accompanying notes are an integral part of the financial statements. 23
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ MULTILINE RETAIL -- (CONTINUED) SPECIALTY RETAIL -- (CONTINUED) Dillard's, Inc. - Class A(1).. 4,082 $ 75,313 Lithia Motors, Inc. - Fred's, Inc. - Class A(1) .... 3,332 33,987 Class A* ................... 1,680 $ 13,810 Retail Ventures, Inc.* ....... 860 7,645 Lumber Liquidators, Saks, Inc.* .................. 9,730 63,829 Inc.* ...................... 991 26,559 Tuesday Morning Corp.* ....... 1,800 4,644 Midas, Inc.* ................. 1,154 9,751 ------------ Monro Muffler Brake, 232,862 Inc. ....................... 1,598 53,437 ------------ New York & Co., Inc.* ........ 2,080 8,923 SPECIALTY RETAIL -- 3.3% OfficeMax, Inc.* ............. 5,760 73,094 America's Car-Mart, Pacific Sunwear of Inc.* ...................... 750 19,748 California, Inc.*(1) ....... 4,290 17,074 AnnTaylor Stores Pier 1 Imports, Inc.* ........ 5,510 28,046 Corp.*(1) .................. 4,830 65,881 Rent-A-Center, Inc.* ......... 5,314 94,164 Asbury Automotive Rex Stores Corp.* ............ 790 11,107 Group, Inc.* ............... 2,714 31,292 Sally Beauty Holdings, Bebe Stores, Inc. ............ 2,876 18,033 Inc.* ...................... 8,063 61,682 Big 5 Sporting Goods Shoe Carnival, Inc.* ......... 369 7,553 Corp. ...................... 1,002 17,214 Sonic Automotive, Inc. - Borders Group, Inc.* ......... 5,560 6,561 Class A*(1) ............... 2,478 25,746 Brown Shoe Co., Inc. ......... 3,765 37,161 Stage Stores, Inc. ........... 3,248 40,145 Build-A-Bear Workshop, Stein Mart, Inc.* ............ 2,410 25,691 Inc.* ...................... 1,721 8,416 Syms Corp.* .................. 760 5,495 Cabela's, Inc.*(1) ........... 2,954 42,124 Systemax, Inc.(1) ............ 942 14,799 Charming Shoppes, Talbots, Inc.*(1) ............ 2,310 20,582 Inc.*(1) ................... 9,620 62,241 The Buckle, Inc.(1) .......... 1,845 54,022 Christopher & Banks The Cato Corp. - Class A ..... 2,293 45,998 Corp. ...................... 2,415 18,402 The Children's Place Citi Trends, Inc.*(1) ........ 1,256 34,691 Retail Stores, Inc.*(1) .... 1,848 61,003 Coldwater Creek, Inc.* ....... 5,040 22,478 The Finish Line, Inc. - Collective Brands, Inc.* ..... 5,067 115,376 Class A(1) ................ 3,364 42,218 Conn's, Inc.*(1) ............. 861 5,028 The Gymboree Corp.*(1) ....... 2,355 102,419 Destination Maternity The Men's Wearhouse, Corp.* ..................... 700 13,300 Inc.(1) .................... 4,189 88,220 Dress Barn, Inc.*(1) ......... 4,167 96,258 The Pep Boys - Manny, DSW, Inc. - Class A* ......... 957 24,767 Moe & Jack ................. 3,853 32,596 Genesco, Inc.* ............... 1,861 51,103 Tractor Supply Co.*(1) ....... 2,774 146,911 Group 1 Automotive, Ulta Salon Cosmetics & Inc.*(1) ................... 1,934 54,829 Fragrance, Inc.* ........... 2,191 39,789 Haverty Furniture Cos., West Marine, Inc.* ........... 1,890 15,233 Inc.(1) .................... 1,797 24,673 Wetseal, Inc. - Class A* ..... 7,786 26,862 hhgregg, Inc.*(1) ............ 1,265 27,868 Zale Corp.*(1) ............... 2,342 6,370 Hibbett Sports, Inc.*(1) ..... 2,514 55,283 Zumiez, Inc.*(1) ............. 1,403 17,846 Hot Topic, Inc.* ............. 3,051 19,404 ------------ J. Crew Group, Inc.*(1) ...... 3,836 171,623 2,405,157 Jo-Ann Stores, Inc.* ......... 1,892 68,566 ------------ Jos. A. Bank Clothiers, TEXTILES, APPAREL & LUXURY GOODS -- 2.2% Inc.*(1) ................... 1,510 63,707 American Apparel, Inc.* ...... 2,943 9,123 Kirkland's, Inc.* ............ 690 11,985 Carter's, Inc.* .............. 4,691 123,139 The accompanying notes are an integral part of the financial statements. 24
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ TEXTILES, APPAREL & LUXURY GOODS -- (CONTINUED) TEXTILES, APPAREL & LUXURY GOODS -- (CONTINUED) Cherokee, Inc.(1) ............ 628 $ 11,191 Weyco Group, Inc. ............ 411 $ 9,716 Columbia Sportswear Wolverine World Wide, Co.(1) ..................... 963 37,596 Inc. ....................... 3,796 103,327 Crocs, Inc.*(1) .............. 5,860 33,695 ------------ Deckers Outdoor 1,578,001 Corp.*(1) .................. 1,047 106,501 ------------ FGX International TOTAL CONSUMER DISCRETIONARY ............... 10,089,186 Holdings, Ltd.* ............ 825 16,162 ------------ Fossil, Inc.* ................ 3,427 115,010 CONSUMER STAPLES -- 3.4% Fuqi International, Inc.*(1) . 830 14,898 BEVERAGES -- 0.1% G-III Apparel Group, Coca-Cola Bottling Co. ....... Ltd.*(1) ................... 677 14,671 Consolidated ............... 251 13,559 Iconix Brand Group, Heckmann Corp.* .............. 6,170 30,789 Inc.*(1) ................... 5,995 75,837 National Beverage Corp. ...... 1,170 16,216 Jones Apparel Group, The Boston Beer Co., Inc. ....................... 6,940 111,456 Inc. - Class A* ............ 695 32,387 K-Swiss, Inc. - Class A* ..... 2,058 20,457 ------------ Kenneth Cole 92,951 Productions, Inc. - ------------ Class A* ................... 850 8,202 FOOD & STAPLES RETAILING -- 0.8% Liz Claiborne, Inc.*(1) ...... 7,690 43,295 Arden Group, Inc. - Lululemon Athletica, Class A .................... 53 5,068 Inc.* ...................... 3,263 98,216 Casey's General Stores, Maidenform Brands, Inc. ....................... 4,086 130,425 Inc.* ...................... 1,459 24,351 Diedrich Coffee, Inc.* ....... 110 3,834 Movado Group, Inc.(1) ........ 1,355 13,171 Great Atlantic & Pacific Oxford Industries, Inc. ...... 870 17,992 Tea Co., Inc.*(1) .......... 2,990 35,252 Perry Ellis International, Ingles Markets, Inc. - Inc.* ...................... 1,077 16,220 Class A .................... 995 15,054 Quiksilver, Inc.* ............ 8,750 17,675 Nash-Finch Co.(1) ............ 878 32,565 Skechers U.S.A., Inc. - PriceSmart, Inc. ............. 1,336 27,308 Class A* ................... 2,573 75,672 Ruddick Corp.(1) ............. 3,460 89,026 Steven Madden, Ltd.* ......... 1,336 55,097 Spartan Stores, Inc. ......... 1,709 24,422 The Timberland Co. - Susser Holdings Corp.* ....... 831 7,138 Class A* ................... 3,325 59,617 The Andersons, Inc. .......... 1,445 37,310 The Warnaco Group, The Pantry, Inc.* ............ 1,660 22,559 Inc.* ...................... 3,471 146,441 United Natural Foods, True Religion Apparel, Inc.* ...................... 2,947 78,803 Inc.*(1) ................... 2,127 39,328 Village Super Market - Under Armour, Inc. - Class A .................... 494 13,496 Class A*(1) ................ 2,623 71,529 Weis Markets, Inc. ........... 918 33,378 Unifi, Inc.* ................. 3,913 15,182 Winn-Dixie Store, Inc.* ...... 3,971 39,869 Unifirst Corp. ............... 1,128 54,268 ------------ 595,507 ------------ FOOD PRODUCTS -- 1.4% AgFeed Industries, Inc.* .... 2,450 12,250 Alico, Inc. ................. 220 6,261 The accompanying notes are an integral part of the financial statements. 25
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ FOOD PRODUCTS -- (CONTINUED) American Dairy, Inc.*(1) ..... 738 $ 16,000 PERSONAL PRODUCTS -- 0.8% American Italian Pasta American Oriental Co.* ....................... 1,800 62,622 Bioengineering, Inc.* ...... 3,929 $ 18,270 B&G Foods, Inc. - Bare Escentuals, Inc.* ....... 5,400 66,042 Class A .................... 1,866 17,130 Chattem, Inc.*(1) ............ 1,688 157,491 Cal-Maine Foods, Inc.(1) ..... 1,232 41,987 China Sky One Medical, Calavo Growers, Inc.(1) ...... 677 11,509 Inc.* ...................... 599 13,627 Chiquita Brands China-Biotics, Inc.* ......... 860 13,304 International, Inc.*(1) .... 3,511 63,338 Elizabeth Arden, Inc.* ....... 2,007 28,981 Darling International, International Parfums, Inc.* ...................... 6,957 58,300 Inc ........................ 1,608 19,569 Diamond Foods, Inc.(1) ....... 1,375 48,867 Mannatech, Inc.(1) ........... 1,390 4,337 Farmer Brothers Co. .......... 388 7,659 Medifast, Inc.*(1) ........... 1,030 31,497 Fresh Del Monte Nu Skin Enterprises, Produce, Inc.* ............. 3,089 68,267 Inc. - Class A ............. 3,328 89,423 Griffin Land & Nutraceutical International Nurseries, Inc. .............. 246 7,166 Corp.* ..................... 1,200 14,844 Harbinger Group, Inc.* ....... 1,670 11,723 Prestige Brands Holdings, HQ Sustainable Maritime Inc.* ...................... 2,497 19,627 Industries, Inc.* .......... 735 5,174 Revlon, Inc. - Class A*(1) ... 1,830 31,128 Imperial Sugar Co. ........... 1,036 18,068 Schiff Nutrition J&J Snack Foods Corp. ........ 1,194 47,712 International, Inc. ........ 1,915 14,975 Lancaster Colony Corp. ....... 1,462 72,661 USANA Health Sciences, Lance, Inc. .................. 2,161 56,834 Inc.*(1) ................... 355 11,325 Omega Protein Corp.* ......... 2,946 12,845 ------------ Overhill Farms, Inc.* ........ 960 4,666 534,440 Sanderson Farms, Inc. ........ 1,541 64,969 ------------ Seneca Foods Corp. - TOBACCO -- 0.2% Class A* ................... 580 13,845 Alliance One Smart Balance, Inc.*(1) ...... 4,149 24,894 International, Inc.*(1) .... 3,792 18,505 Synutra International, Star Scientific, Inc.* ....... 5,009 3,506 Inc.*(1) ................... 1,419 19,171 Universal Corp.(1) ........... 1,992 90,855 The Hain Celestial Vector Group, Ltd.(1) ........ 3,409 47,726 Group, Inc.*(1) ............ 3,173 53,973 ------------ Tootsie Roll Industries, 160,592 Inc.(1) .................... 1,938 53,062 ------------ TreeHouse Foods, Inc.*(1) .... 2,622 101,891 TOTAL CONSUMER STAPLES .................... 2,491,112 Zhongpin, Inc.* .............. 2,354 36,746 ------------ ------------ ENERGY -- 5.2% 1,019,590 ENERGY EQUIPMENT & SERVICES -- 1.8% ------------ Allis-Chalmers Energy, HOUSEHOLD PRODUCTS -- 0.1% Inc.*(1) ................... 5,144 19,393 Central Garden & Pet Basic Energy Services, Co. - Class A* ............. 4,554 45,267 Inc.* ...................... 1,782 15,860 Orchids Paper Products Bolt Technology Corp.* ....... 757 8,342 Co.* ....................... 190 3,804 Boots & Coots, Inc.* ......... 9,320 15,378 WD-40 Co. .................... 1,204 38,961 Bristow Group, Inc.* ......... 2,441 93,856 ------------ Bronco Drilling Co., 88,032 Inc.* ...................... 2,243 11,372 ------------ Cal Dive International, Inc.* ...................... 3,499 26,452 The accompanying notes are an integral part of the financial statements. 26
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ ENERGY EQUIPMENT & SERVICES -- (CONTINUED) OIL, GAS & CONSUMABLE FUELS -- (CONTINUED) CARBO Ceramics, Inc.(1) ...... 1,608 $ 109,617 Arena Resources, Inc.* ........ 3,070 $ 132,378 Complete Production Atlas Energy, Inc. ............ 5,438 164,064 Services, Inc.* ............ 4,016 52,208 ATP Oil & Gas Corp.*(1) ....... 2,952 53,963 Dawson Geophysical Co.* ...... 693 16,015 Berry Petroleum Co. - Dril-Quip, Inc.* ............. 2,328 131,485 Class A(1) .................. 3,374 98,352 ENGlobal, Corp.* ............. 2,143 6,708 Bill Barret Corp.* ............ 3,015 93,797 Geokinetics, Inc.* ........... 690 6,638 BPZ Resources, Inc.* .......... 7,173 68,143 Global Industries, Ltd.* ..... 8,360 59,607 Brigham Exploration Co.* ...... 6,523 88,387 Gulf Island Fabrication, Inc. 813 17,097 Carrizo Oil & Gas, Inc.*(1) ... 2,256 59,761 GulfMark Offshore, Inc.* ..... 1,641 46,457 Cheniere Energy, Inc.* ........ 3,527 8,535 Hercules Offshore, Inc.* ..... 7,440 35,563 Clayton Williams Hornbeck Offshore Energy, Inc.* ............... 543 19,027 Services, Inc.*(1) ......... 1,878 43,720 Clean Energy Fuels Corp.* ..... 2,969 45,752 ION Geophysical Corp.* ....... 8,677 51,368 Cloud Peak Energy, Inc.* ...... 990 14,414 Key Energy Services, Inc.*(1) 10,260 90,185 Contango Oil & Gas Co.* ....... 1,009 47,433 Lufkin Industries, Inc. ...... 1,210 88,572 Crosstex Energy, Inc.(1) ...... 4,023 24,339 Matrix Service Co.* .......... 1,633 17,391 CVR Energy, Inc.* ............. 1,916 13,144 Natural Gas Services Delek US Holdings, Inc. ....... 1,412 9,616 Group, Inc.* ............... 594 11,197 Delta Petroleum Corp.*(1) ..... 12,103 12,587 Newpark Resources, Inc.* ..... 7,242 30,634 DHT Maritime, Inc. ............ 2,873 10,573 Oyo Geospace Corp.* .......... 291 12,481 Endeavour International Parker Drilling Co.* ......... 9,124 45,164 Corp.* ...................... 12,750 13,770 Petroleum Helicopters, Inc.* . 1,015 21,010 Evergreen Energy, Inc.* ....... 19,060 6,538 Pioneer Drilling Co.* ........ 3,838 30,320 FX Energy, Inc.* .............. 2,273 6,478 RPC, Inc.(1) ................. 1,859 19,334 General Maritime Corp. ........ 4,253 29,728 Sulphco, Inc.*(1) ............ 1,280 858 Georesources, Inc.* ........... 564 7,704 Superior Well Services, Inc.* 1,199 17,098 GMX Resources, Inc.*(1) ....... 2,370 32,564 T-3 Energy Services, Inc.* ... 803 20,476 Golar LNG, Ltd.*(1) ........... 2,288 29,332 Tetra Technologies, Inc.*(1) . 6,320 70,026 Goodrich Petroleum Corp.*(1) .. 1,805 43,952 Union Drilling, Inc.* ........ 1,770 11,063 Gran Tierra Energy, Inc.* ..... 16,762 96,046 Vantage Drilling Co.* ........ 8,160 13,138 Green Plains Renewable Willbros Group, Inc.*(1) ..... 3,268 55,131 Energy, Inc.*(1) ............ 1,110 16,506 -------------- Gulfport Energy Corp.* ........ 2,050 23,473 1,321,214 Harvest Natural -------------- Resources, Inc.* ............ 2,549 13,484 OIL, GAS & CONSUMABLE FUELS -- 3.4% International Coal Alon USA Energy, Inc.(1) ..... 1,174 8,030 Group, Inc.* ................ 8,460 32,656 Apco Oil and Gas Isramco, Inc.* ................ 40 2,860 International, Inc. ........ 600 13,260 James River Coal Co.* ......... 1,482 27,461 Approach Resources, Inc.* .... 780 6,022 Knightsbridge Tankers, Ltd. ... 863 11,443 The accompanying notes are an integral part of the financial statements. 27
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ OIL, GAS & CONSUMABLE FUELS -- (CONTINUED) McMoRan Exploration Co.*(1) .. 6,358 $ 50,991 CAPITAL MARKETS -- (CONTINUED) Nordic American Tanker Ares Capital Corp. ........... 7,598 $ 94,595 Shipping ................... 3,108 93,240 BGC Partners, Inc. - Class A.. 4,660 21,529 Northern Oil And Gas, Broadpoint Gleacher Inc.*(1) ................... 1,750 20,720 Securities Group, Inc.* .... 4,075 18,174 Oilsands Quest, Inc.* ........ 18,680 21,482 Calamos Asset Panhandle Oil and Gas, Management, Inc. - Class A.. 1,855 21,388 Inc. - Class A ............. 586 15,177 Capital Southwest Corp. ...... 262 20,646 Patriot Coal Corp.*(1) ....... 5,810 89,823 Cohen & Steers, Inc. ......... 1,213 27,705 Penn Virginia Corp. .......... 3,674 78,219 Diamond Hill Investment Petroleum Development Corp.* . 1,709 31,121 Group, Inc. ................ 160 10,277 Petroquest Energy, Inc.*(1) .. 4,943 30,301 Duff & Phelps Corp. - Rex Energy Corp.* ............ 1,195 14,340 Class A .................... 274 5,003 Rosetta Resources, Inc.* ..... 4,268 85,061 E*TRADE Group, Inc.* ......... 115,230 201,652 Ship Finance Epoch Holding Corp. .......... 940 9,823 International, Ltd.(1) ....... 3,279 44,693 Evercore Partners, Inc. - Southern Union Co. ........... 1 22 Class A(1) ................. 873 26,539 Stone Energy Corp.*(1) ....... 3,444 62,164 Fifth Street Finance Corp.(1) 2,166 23,263 Swift Energy Co.* ............ 3,086 73,941 GAMCO Investors, Syntroleum Corp.* ............ 3,350 8,911 Inc. - Class A ............. 382 18,447 Teekay Tankers, Ltd. - GFI Group, Inc. .............. 4,681 21,392 Class A(1) ................. 948 8,086 Gladstone Capital Corp ....... 1,982 15,261 Toreador Resources Corp. ..... 1,919 18,998 Gladstone Investment Uranium Energy Corp.* ........ 5,800 21,924 Corp. ...................... 1,707 7,784 USEC, Inc.*(1) ............... 8,855 34,092 Harris & Harris Group, Inc.*.. 2,760 12,613 Vaalco Energy, Inc. .......... 4,607 20,962 Hercules Technology Venoco, Inc.* ................ 1,340 17,474 Growth Capital, Inc. ....... 2,998 31,149 W&T Offshore, Inc.(1) ........ 2,830 33,111 International Assets Warren Resources, Inc.* ...... 3,150 7,718 Holding Corp.* ............. 26 378 Western Refining, Inc.*(1) ... 4,205 19,806 JMP Group, Inc. .............. 900 8,748 Westmoreland Coal Co.* ....... 900 8,019 Kayne Anderson Energy World Fuel Services Corp.(1) . 4,174 111,821 Development Co. ............ 1,135 16,514 Zion Oil & Gas, Inc.* ........ 836 5,977 KBW, Inc.*(1) ................ 2,533 69,303 -------------- Knight Capital Group, 2,413,766 Inc. - Class A* ............ 7,312 112,605 -------------- Kohlberg Capital Corp. ....... 897 4,090 TOTAL ENERGY ............................... 3,734,980 LaBranche & Co., Inc.* ....... 4,795 13,618 -------------- MCG Capital Corp.* ........... 5,940 25,661 FINANCIALS -- 19.8% MF Global, Ltd.* ............. 6,480 45,036 CAPITAL MARKETS -- 2.3% MVC Capital, Inc. ............ 1,954 23,057 Allied Capital Corp.*(1) ..... 11,060 39,927 NGP Capital Resources Co. .... 1,756 14,276 American Capital Ltd.*(1) .... 21,270 51,899 Oppenheimer Holdings, Apollo Investment Corp. ...... 12,294 117,162 Inc. - Class A ............. 750 24,915 The accompanying notes are an integral part of the financial statements. 28
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ CAPITAL MARKETS -- (CONTINUED) optionsXpress Holdings, Inc... 3,489 $ 53,905 COMMERCIAL BANKS -- (CONTINUED) PennantPark Investment Corp... 2,328 20,766 Banner Corp.(1) .............. 1,380 $ 3,698 Penson Worldwide, Inc.*(1) ... 1,568 14,206 Boston Private Financial Piper Jaffray Cos.*(1) ....... 1,560 78,952 Holdings, Inc.(1) .......... 4,778 27,569 Prospect Capital Corp.(1) .... 4,709 55,613 Bridge Bancorp, Inc.(1) ...... 610 14,664 Pzena Investment Bryn Mawr Bank Corp. ......... 475 7,168 Management, Inc. - Camden National Corp. ........ 503 16,448 Class A* ................... 665 5,413 Capital City Bank Group, Inc.. 951 13,162 Riskmetrics Group, Inc.* ..... 2,094 33,316 Cardinal Financial Corp. ..... 1,390 12,149 Safeguard Scientifics, Inc.*.. 1,185 12,217 Cathay General Bancorp(1) .... 3,242 24,477 Sanders Morris Harris Center Bancorp, Inc.(1) ...... 1,050 9,366 Group, Inc. ................ 1,795 9,873 Centerstate Banks of Stifel Financial Corp.* ...... 2,367 140,221 Florida, Inc. .............. 1,006 10,151 SWS Group, Inc. .............. 2,087 25,253 Central Pacific Financial Teton Advisors, Inc.* ........ 10 160 Corp.*(1) .................. 2,393 3,135 Thomas Weisel Partners Chemical Financial Corp.(1) .. 1,738 40,982 Group, Inc.* ............... 76 287 Citizens & Northern Corp. .... 661 6,306 TICC Capital Corp. ........... 980 5,929 City Holding Co.(1) .......... 1,232 39,831 TradeStation Group, Inc.* .... 3,280 25,879 CNB Financial Corp.(1) ....... 1,200 19,188 US Global Investors, CoBiz Financial, Inc. ........ 1,549 7,358 Inc. - Class A ............. 1,229 15,129 Columbia Banking Virtus Investment System, Inc. ............... 2,479 40,110 Partners, Inc.* ............ 503 7,998 Community Bank Westwood Holdings Systems, Inc. .............. 2,564 49,511 Group, Inc. ................ 290 10,539 Community Trust -------------- Bancorp, Inc.(1) ........... 1,318 32,225 1,670,085 CVB Financial Corp.(1) ....... 6,734 58,182 -------------- Danvers Bancorp, Inc. ........ 1,001 13,003 COMMERCIAL BANKS -- 5.6% Eagle Bancorp, Inc.* ......... 1,560 16,333 1st Source Corp. ............. 838 13,483 East West Bancorp, Inc.(1) ... 7,442 117,584 Alliance Financial Corp. ..... 520 14,118 Enterprise BanCorp., Inc.(1).. 400 4,380 American National Enterprise Financial Bankshares, Inc. ........... 630 13,797 Services Corp.(1) .......... 753 5,806 Ameris Bancorp ............... 1,118 8,009 Farmers Capital Bank Corp. ... 529 5,406 Ames National Corp.(1) ....... 481 10,154 Financial Institutions, Inc... 873 10,284 Arrow Financial Corp.(1) ..... 1,072 26,800 First Bancorp, Inc. .......... 939 14,479 Auburn National First Bancorp/North Bancorporation, Inc.(1) .... 150 2,953 Carolina(1) ................ 1,095 15,297 Bancfirst Corp. .............. 414 15,335 First Bancorp/Puerto Rico(1).. 6,366 14,642 Banco Latinoamericano First Busey Corp.(1) ......... 2,081 8,095 De Exportaciones SA ........ 2,124 29,524 Bank of Marin BanCorp ........ 660 21,490 Bank of the Ozarks, Inc. ..... 976 28,568 The accompanying notes are an integral part of the financial statements. 29
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ COMMERCIAL BANKS -- (CONTINUED) COMMERCIAL BANKS -- (CONTINUED) First Commonwealth National Penn Financial Corp. ............ 6,716 $ 31,229 Bancshares, Inc. ........... 9,741 $ 56,400 First Community NBT Bancorp, Inc. ............ 2,608 53,125 Bancshares, Inc. ........... 371 4,471 Northfield Bancorp, First Financial Bancorp ...... 4,175 60,788 Inc.(1) .................... 1,406 19,009 First Financial Northrim BanCorp, Inc. ....... 30 506 Bankshares, Inc. ........... 1,601 86,822 Norwood Financial Corp. ...... 220 6,290 First Financial Corp./ Ohio Valley Banc Corp.(1) .... 820 18,065 Indiana .................... 725 22,127 Old National Bancorp/ First Merchants Corp. ........ 1,945 11,553 Indiana .................... 6,621 82,299 First Midwest Bancorp, Old Point Financial Corp. .... 290 4,509 Inc.(1) .................... 3,551 38,670 Old Second Bancorp, First South Bancorp .......... 862 8,879 Inc.(1) .................... 1,140 7,855 FirstMerit Corp. ............. 6,343 127,748 Oriental Financial Group, FNB Corp.(1) ............... 9,756 66,243 Inc. ....................... 1,974 21,319 German American Orrstown Financial Bancorp, Inc. .............. 990 16,087 Services, Inc.(1) .......... 340 11,859 Glacier Bancorp, Inc.(1) ..... 4,701 64,498 Pacific Continental Corp. .... 856 9,793 Great Southern Bancorp, PacWest Bancorp(1) ........... 1,939 39,071 Inc.(1) .................... 1,020 21,787 Park National Corp.(1) ....... 848 49,930 Guaranty Bancorp* ............ 5,210 6,877 Peapack-Gladstone Hampton Roads Financial Corp.(1) ......... 807 10,233 Bankshares, Inc.(1) .......... 1,010 1,747 Penns Woods Bancorp., Hancock Holding Co. .......... 2,349 102,863 Inc.(1) .................... 430 13,949 Harleysville National Peoples Bancorp, Inc./ Corp ....................... 3,518 22,656 Ohio ....................... 846 8,189 Heartland Financial USA, Peoples Financial Corp./ Inc.(1) .................... 983 14,106 Mississippi ................ 650 13,208 Home Bancshares, Inc.(1) .... 1,292 31,098 Pinnacle Financial IBERIABANK Corp. ............. 1,614 86,849 Partners, Inc.* .............. 2,871 40,826 Independent Bank Corp./ PremierWest Bancorp .......... 1,715 2,435 Massachusetts .............. 1,856 38,772 PrivateBancorp, Inc. ......... 2,740 24,578 International Bancshares Prosperity Bancshares, Corp.(1) ................... 3,752 71,025 Inc.(1) .................... 3,625 146,704 Investors Bancorp, Inc.* ..... 4,391 48,038 Renasant Corp.(1) ............ 1,661 22,590 Lakeland Bancorp, Republic Bancorp, Inc./ Inc.(1) .................... 1,655 10,575 Kentucky - Class A(1) ...... 727 14,976 Lakeland Financial Corp. ..... 885 15,266 S&T Bancorp, Inc.(1) ......... 1,970 33,510 MainSource Financial S.Y. Bancorp, Inc. ........... 949 20,261 Group, Inc. ................ 1,619 7,739 Sandy Springs Bancorp, MB Financial, Inc. ........... 3,775 74,443 Inc.(1) .................... 1,287 11,441 Merchants Bancshares, Santander BanCorp* ........... 650 7,982 Inc ........................ 760 17,206 SCBT Financial Corp. ......... 1,019 28,216 Metro Bancorp, Inc.* ......... 352 4,425 Shore Bancshares, Inc. ....... 574 8,300 Nara Bancorp, Inc.*(1) ....... 1,841 20,877 Sierra Bancorp(1) ............ 516 3,937 National Bankshares, Signature Bank*(1) ........... 3,174 101,251 Inc.(1) .................... 860 24,329 Simmons First National Corp. - Class A(1) ......... 1,006 27,967 The accompanying notes are an integral part of the financial statements. 30
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ COMMERCIAL BANKS -- (CONTINUED) CONSUMER FINANCE -- 0.5% Smithtown Bancorp, Advance America Cash Inc.(1) .................... 627 $ 3,731 Advance Centers, Inc. ...... 2,250 $ 12,510 Southside Bancshares, Cardtronics, Inc.*(1) ........ 330 3,653 Inc. ....................... 955 18,737 Cash America Southwest Bancorp, Inc. ...... 1,192 8,272 International, Inc. ........ 2,496 87,260 State Bancorp, Inc. .......... 1,199 8,525 CompuCredit Holdings StellarOne Corp. ............. 1,803 17,958 Corp.(1) ................... 1,312 4,369 Sterling Bancorp ............. 1,287 9,189 Credit Acceptance Corp.* ..... 485 20,418 Sterling Bancshares, Dollar Financial Corp.* ...... 1,942 45,948 Inc.(1) .................... 6,462 33,150 EzCorp, Inc. - Class A* ...... 3,779 65,037 Suffolk Bancorp(1) ........... 594 17,642 First Cash Financial Sun Bancorp, Inc.* ........... 1,365 5,119 Services, Inc.* ............ 1,469 32,597 Susquehanna Bancshares, Nelnet, Inc. - Class A ....... 1,442 24,846 Inc.(1) .................... 7,303 43,015 The First Marblehead SVB Financial Group*(1) ...... 2,698 112,480 Corp.* ..................... 5,080 10,820 Texas Capital Bancshares, World Acceptance Inc.* ...................... 3,108 43,388 Corp.*(1) .................. 1,484 53,172 The Bancorp Bank* ............ 2,550 17,493 ------------ The First of Long Island 360,630 Corp. ...................... 280 7,070 ------------ Tompkins Financial DIVERSIFIED FINANCIAL SERVICES -- 0.5% Corp. ...................... 491 19,885 Asset Acceptance Tower Bancorp, Inc. .......... 590 13,481 Capital Corp.*(1) .......... 1,100 7,458 TowneBank(1) ................. 1,600 18,688 Compass Diversified Trico Bancshares ............. 1,043 17,366 Holdings ................... 1,831 23,364 Trustmark Corp. .............. 4,678 105,442 Encore Capital Group, UMB Financial Corp.(1) ....... 2,494 98,139 Inc.*(1) ................... 965 16,791 Umpqua Holdings Corp. ........ 6,786 91,000 Financial Federal Corp. ...... 2,041 56,128 Union Bankshares Corp. ....... 1,069 13,245 Life Partners Holdings, United Bankshares, Inc.(1) ... 3,064 61,188 Inc.(1) .................... 498 10,553 United Community MarketAxess Holdings, Banks, Inc.*(1) ............ 7,150 24,238 Inc.(1) .................... 2,647 36,793 United Security Medallion Financial Bancshares(1) .............. 810 13,883 Corp. ...................... 1,311 10,711 Univest Corp. of PA .......... 1,173 20,563 NewStar Financial, Inc.* ..... 1,134 4,445 Washington Trust PHH Corp.*(1) ................ 4,567 73,574 Bancorp, Inc. .............. 1,196 18,634 PICO Holdings, Inc.* ......... 1,826 59,765 Webster Financial Corp. ...... 4,470 53,059 Portfolio Recovery WesBanco, Inc. ............... 1,656 20,435 Associates, Inc.*(1) ....... 1,069 47,977 West Bancorp, Inc. ........... 1,387 6,838 Resource America, Inc. - Westamerica Bancorp(1) ....... 2,313 128,071 Class A .................... 1,310 5,292 Western Alliance ------------ Bancorp* ................... 3,761 14,217 352,851 Wilshire Bancorp, Inc.(1) .... 1,470 12,039 ------------ Wintrust Financial INSURANCE -- 3.1% Corp.(1) ................... 1,933 59,517 AMBAC Financial Yadkin Valley Financial Group, Inc.*(1) ............ 17,130 14,218 Corp.(1) ................... 807 2,954 American Equity ------------ Investment Life 4,084,247 Holding Co. ................ 4,973 36,999 ------------ The accompanying notes are an integral part of the financial statements. 31
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ INSURANCE -- (CONTINUED) INSURANCE -- (CONTINUED) American Physicians Kansas City Life Service Group, Inc. ........ 270 $ 6,229 Insurance Co. .............. 400 $ 11,900 American Safety Maiden Holdings, Ltd. ........ 4,032 29,514 Insurance Holdings, Max Capital Group, Ltd. ...... 2,985 66,565 Ltd.* ...................... 957 13,829 Meadowbrook Insurance Amerisafe, Inc.* ............. 1,542 27,710 Group, Inc. ................ 4,515 33,411 Amtrust Financial Montpelier Re Holdings, Services, Inc. ............. 2,213 26,158 Ltd.(1) .................... 7,114 123,214 Argo Group International National Financial Holdings, Ltd.* ............ 2,241 65,303 Partners Corp.* .............. 2,050 16,584 Assured Guaranty, Ltd. ....... 8,359 181,892 National Interstate Corp. .... 519 8,802 Baldwin & Lyons, Inc. - National Western Life Class B .................... 652 16,046 Insurance Co. - Citizens, Inc.*(1) ........... 3,457 22,574 Class A .................... 145 25,175 CNA Surety Corp.* ............ 1,048 15,605 Navigators Group, Inc.* ...... 1,026 48,335 Conseco, Inc.*(1) ............ 15,330 76,650 NYMagic, Inc. ................ 624 10,352 Crawford & Co. - Platinum Underwriters Class B* ................... 2,037 8,026 Holdings, Ltd.(1) .......... 3,440 131,718 Delphi Financial Group, PMA Capital Corp. - Inc. - Class A ............. 3,853 86,192 Class A* ................... 2,485 15,655 Donegal Group, Inc. - Presidential Life Corp. ...... 2,190 20,038 Class A .................... 750 11,655 ProAssurance Corp.* .......... 2,507 134,651 eHealth, Inc.* ............... 2,144 35,226 RLI Corp.(1) ............... 1,626 86,584 EMC Insurance Group, Safety Insurance Group, Inc.(1) .................... 445 9,572 Inc. ....................... 1,214 43,983 Employers Holdings, Inc. ..... 3,237 49,656 SeaBright Insurance Enstar Group, Ltd.* .......... 409 29,865 Holdings, Inc.* ............ 1,684 19,349 FBL Financial Group, Selective Insurance Inc. - Class A(1) .......... 453 8,390 Group, Inc. ................ 4,273 70,291 First Acceptance Corp.* ...... 1,630 3,178 State Auto Financial First Mercury Financial Corp. ...................... 1,158 21,423 Corp. ...................... 1,105 15,150 Stewart Information Flagstone Reinsurance Services Corp.(1) .......... 1,499 16,909 Holdings, Ltd. ............. 2,687 29,396 The Phoenix Cos., Inc.*(1) ... 10,064 27,978 FPIC Insurance Group, Tower Group, Inc.(1) ......... 3,147 73,671 Inc.* ...................... 661 25,528 United America Greenlight Capital Re, Indemnity, Ltd. - Ltd. - Class A*(1) ......... 1,950 45,961 Class A* ................... 2,979 23,594 Hallmark Financial United Fire & Casualty Services, Inc.* ............ 1,217 9,687 Co. ........................ 1,595 29,077 Harleysville Group, Inc. ..... 1,069 33,984 Zenith National Insurance Hilltop Holdings, Inc.* ...... 3,691 42,963 Corp.(1) ................... 2,787 82,941 Horace Mann Educators ------------ Corp. ...................... 3,474 43,425 2,212,739 Independence Holding ------------ Co. ........................ 990 5,742 REAL ESTATE INVESTMENT TRUSTS -- 6.3% Infinity Property & Acadia Realty Trust .......... 3,175 53,562 Casualty Corp. ............. 1,088 44,216 Agree Realty Corp. ........... 749 17,444 Alexander's, Inc.*(1) ........ 176 53,578 The accompanying notes are an integral part of the financial statements. 32
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ REAL ESTATE INVESTMENT TRUSTS -- (CONTINUED) REAL ESTATE INVESTMENT TRUSTS -- (CONTINUED) American Campus First Industrial Realty Communities, Inc.(1) ....... 4,095 $ 115,069 Trust, Inc.*(1) ............ 4,042 $ 21,140 American Capital First Potomac Realty Agency Corp. ............... 898 23,833 Trust ...................... 2,424 30,470 Anworth Mortgage Franklin Street Asset Corp. ................ 7,921 55,447 Properties Corp. ........... 4,587 67,016 Ashford Hospitality Getty Realty Corp. ........... 1,377 32,401 Trust, Inc.*(1) ............ 5,090 23,618 Gladstone Commercial Associated Estates Corp ....................... 1,100 14,751 Realty Corp. ............... 1,164 13,118 Glimcher Realty Trust ........ 3,615 9,761 BioMed Realty Trust, Government Properties Inc ........................ 8,116 128,070 Income Trust ............... 560 12,869 CapLease Funding, Inc. ....... 4,301 18,838 Hatteras Financial Corp.(1) .. 2,681 74,961 Capstead Mortgage Corp. ...... 4,840 66,066 Healthcare Realty Trust, Care Investment Trust, Inc ........................ 4,956 106,356 Inc. ....................... 1,180 9,180 Hersha Hospitality Trust(1) .. 4,218 13,245 CBL & Associates Highwoods Properties, Properties, Inc.(1) ........ 11,290 109,174 Inc.(1) .................... 5,705 190,262 Cedar Shopping Centers, Home Properties, Inc.(1) ..... 2,724 129,962 Inc ........................ 3,446 23,433 Inland Real Estate Cogdell Spencer, Inc. ........ 1,127 6,379 Corp.(1) ................... 6,265 51,060 Colonial Properties Invesco Mortgage Trust(1) ................... 5,453 63,964 Capital, Inc. .............. 740 16,842 Cousins Properties, Inc.(1) .. 5,238 39,966 Investors Real Estate Cypress Sharpridge Trust ...................... 5,907 53,163 Investments, Inc. .......... 2,340 31,613 iStar Financial, Inc.*(1) .... 8,190 20,966 DCT Industrial Trust, Kilroy Realty Corp.(1) ....... 3,520 107,958 Inc.(1) .................... 17,015 85,415 Kite Realty Group Trust ...... 580 2,361 Developers Diversified LaSalle Hotel Properties ..... 4,701 99,802 Realty Corp.(1) ............ 11,780 109,083 Lexington Realty DiamondRock Trust(1) ................... 7,381 44,876 Hospitality Co.(1) ......... 9,219 78,085 LTC Properties, Inc. ......... 1,522 40,714 DuPont Fabros Medical Properties Trust, Technology, Inc.(1) ........ 1,815 32,652 Inc.(1) .................... 6,485 64,850 Dynex Capital, Inc. .......... 1,710 14,928 MFA Mortgage Eastgroup Properties, Inc. ... 2,034 77,862 Investments, Inc. .......... 22,021 161,854 Education Realty Mid-America Apartment Trust, Inc. ................ 4,881 23,624 Communities, Inc. .......... 1,890 91,249 Entertainment Properties Mission West Properties, Trust(1) ................... 2,869 101,190 Inc.(1) .................... 1,485 10,677 Equity Lifestyle Monmouth Real Estate - Properties, Inc. ........... 1,957 98,770 Class A .................... 1,412 10,505 Equity One, Inc.(1) .......... 2,702 43,691 National Health Investors, Extra Space Storage, Inc ........................ 1,994 73,758 Inc.(1) .................... 7,092 81,913 National Retail Properties, FelCor Lodging Trust, Inc.(1) .................... 5,684 120,614 Inc.* ...................... 6,270 22,572 The accompanying notes are an integral part of the financial statements. 33
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ REAL ESTATE INVESTMENT TRUSTS -- (CONTINUED) REAL ESTATE MANAGEMENT & NorthStar Realty Finance DEVELOPMENT -- (CONTINUED) Corp.(1) ................... 5,790 $ 19,860 Forestar Real Estate Omega Healthcare Group, Inc.* ............... 2,998 $ 65,896 Investors, Inc.(1) ......... 6,505 126,522 Tejon Ranch Co.*(1) .......... 648 18,935 Parkway Properties, Inc. ..... 1,799 37,455 ------------ Pennsylvania Real Estate 114,426 Investment Trust ........... 3,321 28,096 ------------ Pennymac Mortgage THRIFTS & MORTGAGE FINANCE -- 1.3% Investment Trust* .......... 2,150 36,937 Abington Bancorp, Inc. ....... 1,867 12,864 Post Properties, Inc.(1) ..... 3,571 69,992 Astoria Financial Corp.(1) ... 7,090 88,129 Potlatch Corp.(1) ............ 3,071 97,903 Bank Mutual Corp. ............ 3,831 26,511 PS Business Parks, Inc. ...... 1,419 71,021 BankFinancial Corp. .......... 1,661 16,444 RAIT Financial Trust* ........ 5,741 7,521 Beneficial Mutual Ramco-Gershenson Bancorp, Inc.* ............. 2,557 25,161 Properties Trust ........... 2,754 26,273 Berkshire Hills Bancorp, Redwood Trust, Inc. .......... 6,469 93,542 Inc. ....................... 1,111 22,975 Resource Capital Corp. ....... 2 10 Brookline Bancorp, Inc. ...... 4,778 47,350 Saul Centers, Inc. ........... 628 20,573 Brooklyn Federal Sovran Self Storage, Inc. .... 2,387 85,288 Bancorp, Inc.(1) ........... 700 7,028 Starwood Property Clifton Savings Trust, Inc. ................ 3,290 62,148 Bancorp, Inc. .............. 405 3,795 Strategic Hotels & Dime Community Bancshares .... 1,893 22,186 Resources, Inc.*(1) ........ 6,380 11,867 Doral Financial Corp.*(1) .... 968 3,514 Sun Communities, Inc. ........ 1,141 22,535 ESB Financial Corp. .......... 1,420 18,772 Sunstone Hotel Investors, ESSA Bancorp, Inc. ........... 1,500 17,550 Inc.*(1) ................... 8,034 71,342 First Defiance Financial Tanger Factory Outlet Corp. ...................... 600 6,774 Centers, Inc.(1) ........... 3,382 131,864 First Financial Holdings, Transcontinental Realty Inc. ....................... 964 12,522 Investors, Inc.*(1) ........ 380 4,526 First Financial Northwest, U-Store-It Trust(1) .......... 7,014 51,342 Inc. ....................... 1,927 12,622 Universal Health Realty First Financial Service Income Trust ............... 877 28,090 Corp. ...................... 1,070 9,694 Urstadt Biddle Properties, Flushing Financial Corp. ..... 1,824 20,538 Inc. - Class A ............. 1,585 24,203 Fox Chase Bancorp, Walter Investment Inc.* ...................... 917 8,730 Management Corp. ........... 1,610 23,071 Home Federal Bancorp, Washington Real Estate Inc. ....................... 1,503 20,005 Investment Trust(1) ........ 4,602 126,785 Kearny Financial Corp. ....... 1,319 13,296 Winthrop Realty Trust ........ 1,272 13,814 Kentucky First Federal ------------ Bancorp.(1) ................ 340 3,740 4,589,160 Legacy Bancorp, Inc. ......... 1,060 10,452 ------------ Meridian Interstate REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.2% Bancorp, Inc.* ............. 1,140 9,907 Avatar Holdings, Inc.* ....... 512 8,709 MGIC Investment China Housing & Land Corp.*(1) .................. 10,280 59,418 Development, Inc.* ......... 2,350 9,705 NewAlliance Bancshares, Consolidated Tomoka Inc. ....................... 7,905 94,939 Land Co. ................... 320 11,181 The accompanying notes are an integral part of the financial statements. 34
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------- THRIFTS & MORTGAGE FINANCE -- (CONTINUED) BIOTECHNOLOGY -- (CONTINUED) Northwest Bancshares, BioCryst Pharmaceuticals, Inc.* ...................... 1,729 $ 19,569 Inc.*(1) .................... 2,490 $ 16,085 OceanFirst Financial Biospecifics Technologies Corp. ...................... 798 9,017 Corp.*(1) ................... 150 4,402 Ocwen Financial Corp.*(1) .... 4,786 45,802 Celera Corp.* ................. 6,033 41,688 Oritani Financial Corp. ...... 756 10,380 Cell Therapeutics, Inc.*(1) ... 38,170 43,514 Provident Financial Celldex Therapeutics, Services, Inc. ............. 5,355 57,031 Inc.* ....................... 973 4,554 Provident New York Cepheid, Inc.*(1) ............. 4,077 50,881 Bancorp .................... 3,234 27,295 Chelsea Therapeutics Prudential BanCorp., Inc. International, Inc.* ........ 4,770 12,879 of Pennsylvania(1) ......... 470 4,474 Clinical Data, Inc.*(1) ....... 845 15,430 Radian Group, Inc.(1) ........ 6,676 48,802 Cubist Pharmaceuticals, Rockville Financial, Inc. .... 773 8,116 Inc.* ....................... 4,562 86,541 Roma Financial Corp. ......... 767 9,480 Curis, Inc.*(1) ............... 2,140 6,955 The PMI Group, Inc.*(1) ...... 5,800 14,616 Cytokinetics, Inc.* ........... 3,020 8,788 TrustCo Bank Corp.(1) ........ 5,494 34,612 Cytori Therapeutics, United Financial Inc.*(1) .................... 1,467 8,949 Bancorp, Inc. .............. 880 11,537 Dyax Corp.*(1) ................ 7,101 24,072 ViewPoint Financial Emergent Biosolutions, Group ...................... 601 8,660 Inc.* ....................... 1,451 19,719 Westfield Financial, Inc. .... 2,324 19,173 Enzon Pharmaceuticals, WSFS Financial Corp. ......... 508 13,020 Inc.*(1) .................... 3,552 37,403 ------------ Exelixis, Inc.* ............... 9,162 67,524 936,500 Facet Biotech Corp.* .......... 1,681 29,552 ------------ Genomic Health, Inc.* ......... 1,270 24,841 TOTAL FINANCIALS ........................... 14,320,638 Geron Corp.*(1) ............... 6,247 34,671 ------------ GTx, Inc.*(1) ................. 1,098 4,612 HEALTH CARE -- 14.4% Halozyme Therapeutics, BIOTECHNOLOGY -- 4.0% Inc.* ....................... 5,721 33,582 Acorda Therapeutics, Hemispherx Biopharma, Inc.* ...................... 3,313 83,554 Inc.*(1) .................... 9,290 5,202 Affymax, Inc.* ............... 855 21,153 Human Genome Alkermes, Inc.* .............. 8,623 81,142 Sciences, Inc.* ............. 14,030 429,318 Allos Therapeutics, Idenix Pharmaceuticals, Inc.*(1) ................... 6,068 39,867 Inc.* ....................... 1,712 3,681 Alnylam Pharmaceuticals, Idera Pharmaceuticals, Inc.* ...................... 3,038 53,530 Inc.* ....................... 1,334 6,897 AMAG Pharmaceuticals, Immunogen, Inc.* .............. 4,078 32,053 Inc.*(1) ................... 1,390 52,862 Immunomedics, Inc.*(1) ........ 5,910 18,971 Amicus Therapeutics, Incyte Corp.*(1) .............. 7,787 70,940 Inc.*(1) ................... 1,880 7,464 Infinity Pharmaceuticals, Arena Pharmaceuticals, Inc.* ....................... 2,710 16,748 Inc.*(1) ................... 6,810 24,175 Insmed, Inc.* ................. 17,780 13,691 Ariad Pharmaceuticals, InterMune, Inc.*(1) ........... 2,956 38,546 Inc.* ...................... 4,930 11,240 Isis Pharmaceuticals, ArQule, Inc.* ................ 2,610 9,631 Inc.*(1) .................... 7,912 87,823 Array Biopharma, Inc.* ....... 2,963 8,326 AVI BioPharma, Inc.*(1) ...... 10,420 15,213 The accompanying notes are an integral part of the financial statements. 35
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ BIOTECHNOLOGY -- (CONTINUED) BIOTECHNOLOGY -- (CONTINUED) Lexicon Pharmaceuticals, Savient Pharmaceuticals, Inc.* ...................... 8,740 $ 14,858 Inc.*(1) ................... 4,958 $ 67,478 Ligand Pharmaceuticals, Seattle Genetics, Inc.* ...... 7,125 72,390 Inc. - Class B* ............ 9,151 19,858 SIGA Technologies, Inc.* ..... 2,580 14,964 MannKind Corp.*(1) ........... 4,797 42,022 Spectrum Pharmaceuticals, Martek Bioscience Inc.*(1) ................... 3,860 17,138 Corp.*(1) .................. 2,356 44,623 StemCells, Inc.*(1) .......... 11,150 14,049 Maxygen, Inc.* ............... 1,716 10,450 Synta Pharmaceuticals Medivation, Inc.*(1) ......... 2,341 88,139 Corp.*(1) .................. 2,000 10,120 Metabolix, Inc.* ............. 1,226 13,572 Theravance, Inc.* ............ 4,266 55,757 Micromet, Inc.*(1) ........... 4,550 30,303 Vanda Pharmaceuticals, Molecular Insight Inc.*(1) ................... 2,190 24,616 Pharmaceuticals, Vical, Inc.*(1) .............. 1,870 6,152 Inc.*(1) ................... 2,540 5,715 Zymogenetics, Inc.*(1) ....... 2,575 16,454 Momenta Pharmaceuticals, ------------ Inc.* ...................... 2,980 37,578 2,897,506 Myriad Pharmaceuticals, ------------ Inc.* ...................... 1,881 9,461 HEALTH CARE EQUIPMENT & SUPPLIES -- 3.6% Nabi Biopharmaceuticals* ..... 4,188 20,521 Abaxis, Inc.* ................ 1,881 48,060 Nanosphere, Inc.* ............ 1,299 8,366 Abiomed, Inc.*(1) ............ 2,062 18,022 Neurocrine Biosciences, AccuRay, Inc.* ............... 3,180 17,840 Inc.* ...................... 3,017 8,206 Align Technology, Inc.*(1) ... 4,611 82,168 NeurogesX, Inc.* ............. 1,700 13,107 Alphatec Holdings, Inc.* ..... 2,110 11,267 Novavax, Inc.*(1) ............ 5,273 14,026 American Medical NPS Pharmaceuticals, Systems Holdings, Inc.* ...................... 3,012 10,241 Inc.*(1) ................... 5,624 108,487 Onyx Pharmaceuticals, Analogic Corp.(1) ............ 1,048 40,358 Inc.* ...................... 4,444 130,387 AngioDynamics, Inc.* ......... 1,729 27,802 Opko Health, Inc.* ........... 6,200 11,346 Atrion Corp.(1) .............. 190 29,587 Orexigen Therapeutics, ATS Medical, Inc.*(1) ........ 2,990 9,658 Inc.* ...................... 1,905 14,173 Bovie Medical Corp.*(1) ...... 2,160 16,870 Osiris Therapeutics, Inc.* ... 1,494 10,667 Cantel Medical Corp.* ........ 1,044 21,068 PDL BioPharma, Inc.(1) ....... 10,476 71,865 Cardiac Science Corp.* ....... 1,667 3,717 Pharmasset, Inc.* ............ 1,528 31,630 Cardiovascular Systems, Poniard Pharmaceuticals, Inc.* ...................... 1,410 6,472 Inc.*(1) ................... 1,440 2,635 Conceptus, Inc.*(1) .......... 2,371 44,480 Progenics Pharmaceuticals, Conmed Corp.* ................ 2,223 50,684 Inc.*(1) ................... 1,706 7,575 Cryolife, Inc.* .............. 1,550 9,951 Protalix BioTherapeutics, Cyberonics, Inc.* ............ 2,780 56,823 Inc.*(1) ................... 3,160 20,919 Cynosure, Inc. - Class A* .... 603 6,928 Regeneron Pharmaceuticals, Delcath Systems, Inc.* ....... 2,950 15,163 Inc.* ...................... 5,432 131,346 DexCom, Inc.*(1) ............. 2,443 19,739 Repligen Corp.* .............. 3,750 15,412 Electro-Optical Sciences, Rigel Pharmaceuticals, Inc.*(1) ................... 1,820 18,855 Inc.*(1) ................... 3,531 33,580 Endologix, Inc.* ............. 3,030 15,998 Sangamo Biosciences, ev3, Inc.*(1) ................ 6,195 82,641 Inc.*(1) ................... 2,895 17,138 Exactech, Inc.* .............. 622 10,767 Greatbatch, Inc.*(1) ......... 1,901 36,556 Haemonetics Corp.* ........... 1,985 109,473 The accompanying notes are an integral part of the financial statements. 36
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ HEALTH CARE EQUIPMENT & SUPPLIES -- (CONTINUED) HEALTH CARE EQUIPMENT & SUPPLIES -- (CONTINUED) Hansen Medical, Inc.* ........ 1,503 $ 4,554 Thoratec Corp.*(1) ........... 4,596 $ 123,724 HeartWare International, TomoTherapy, Inc.* ........... 4,263 16,626 Inc.* ...................... 390 13,833 TranS1, Inc.* ................ 847 3,346 ICU Medical, Inc.* ........... 1,117 40,704 Utah Medical Products, Immucor, Inc.* ............... 5,669 114,741 Inc.(1) .................... 630 18,472 Insulet Corp.*(1) ............ 2,721 38,856 Vascular Solutions, Inc.* .... 720 6,041 Integra LifeSciences Volcano Corp.*(1) ............ 4,249 73,848 Holdings Corp.*(1) ......... 1,627 59,841 West Pharmaceutical Invacare Corp.(1) ............ 2,134 53,222 Services, Inc. ............. 2,618 102,626 IRIS International, Inc.* .... 1,005 12,422 Wright Medical Group, Kensey Nash Corp.* ........... 558 14,229 Inc.*(1) ................... 3,110 58,935 MAKO Surgical Corp.*(1) ...... 660 7,326 Young Innovations, Inc. ...... 770 19,081 Masimo Corp.* ................ 3,931 119,581 Zoll Medical Corp.* .......... 1,833 48,978 Medical Action Industries, ------------ Inc.* ...................... 1,124 18,051 2,629,536 Meridian Bioscience, Inc. .... 2,854 61,504 ------------ Merit Medical Systems, HEALTH CARE PROVIDERS & SERVICES -- 3.7% Inc.* ...................... 2,522 48,649 Air Methods Corp.*(1) ........ 781 26,257 Micrus Endovascular Alliance HealthCare Corp.* ..................... 929 13,944 Services, Inc.* ............ 2,920 16,673 Natus Medical, Inc.* ......... 2,223 32,878 Allied Healthcare Neogen Corp.*(1) ............. 1,363 32,180 International, Inc.* ....... 5,710 16,616 NuVasive, Inc.*(1) ........... 2,840 90,823 Allion Healthcare, Inc.* ..... 2,640 17,318 NxStage Medical, Inc.*(1) .... 2,581 21,551 Almost Family, Inc.*(1) ...... 548 21,662 OraSure Technologies, Amedisys, Inc.*(1) ........... 2,046 99,354 Inc.* ...................... 3,287 16,698 American Dental Orthofix International Partners, Inc.* ............ 1,800 23,220 N.V.* ...................... 1,421 44,008 AMERIGROUP Corp.*(1) ......... 4,178 112,639 Orthovita, Inc.* ............. 3,068 10,769 AMN Healthcare Palomar Medical Services, Inc.* ............ 2,568 23,266 Technologies, Inc.* ........ 1,403 14,142 AmSurg Corp.* ................ 2,550 56,151 Quidel Corp.*(1) ............. 1,397 19,251 Assisted Living Concepts, Rochester Medical Inc. - Class A* ............ 752 19,830 Corp.* ..................... 1,660 18,476 Bio-Reference Labs, Inc.* .... 699 27,394 Rockwell Medical BioScrip, Inc.* .............. 2,220 18,559 Technologies, Inc.* ........ 660 5,075 Capital Senior Living RTI Biologics, Inc.* ......... 4,000 15,360 Corp.* ..................... 2,468 12,389 Sirona Dental Systems, CardioNet, Inc.* ............. 1,800 10,692 Inc.* ...................... 1,242 39,421 Catalyst Health Solutions, Somanetics Corp.* ............ 632 11,092 Inc.* ...................... 3,056 111,452 SonoSite, Inc.* .............. 1,415 33,436 Centene Corp.*(1) ............ 3,457 73,185 Spectranetics Corp.* ......... 1,838 12,792 Chemed Corp. ................. 1,715 82,269 Stereotaxis, Inc.*(1) ........ 2,246 8,827 Chindex International, STERIS Corp. ................. 4,900 137,053 Inc.* ...................... 861 12,166 SurModics, Inc.*(1) .......... 960 21,754 Clarient, Inc.* .............. 670 1,776 Symmetry Medical, Inc.* ...... 2,878 23,197 Continucare Corp.* ........... 4,530 19,796 Synovis Life Corvel Corp.* ................ 410 13,751 Technologies, Inc.* ........ 634 8,185 Cross Country Healthcare, Inc.* ...................... 2,414 23,923 The accompanying notes are an integral part of the financial statements. 37
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ HEALTH CARE PROVIDERS & SERVICES -- (CONTINUED) HEALTH CARE PROVIDERS & SERVICES -- (CONTINUED) Emergency Medical Sun Healthcare Group, Services Corp. - Inc.* ...................... 2,620 $ 24,025 Class A* ................... 1,212 $ 65,630 Sunrise Senior Living, Emeritus Corp.*(1) ........... 1,436 26,925 Inc.*(1) ................... 4,930 15,875 Genoptix, Inc.* .............. 1,105 39,261 The Ensign Group, Inc. ....... 569 8,746 Gentiva Health Services, Triple-S Management Inc.* ...................... 2,547 68,795 Corp. - Class B*(1) ........ 2,121 37,330 Hanger Orthopedic Group, U.S. Physical Therapy, Inc.* ...................... 1,423 19,680 Inc.* ...................... 812 13,747 Health Grades, Inc.* ......... 1,760 7,550 Universal American HealthSouth Corp.* ........... 7,044 132,216 Corp.* ..................... 2,473 28,934 Healthspring, Inc.* .......... 4,163 73,310 Virtual Radiologic Corp.* .... 280 3,573 Healthways, Inc.* ............ 2,910 53,369 WellCare Health Plans, HMS Holdings Corp.* .......... 1,959 95,384 Inc.* ...................... 3,400 124,984 inVentiv Health, Inc.* ....... 2,397 38,760 ------------ IPC The Hospitalist Co., 2,660,084 Inc.* ...................... 1,520 50,540 ------------ Kindred Healthcare, Inc.* .... 3,239 59,792 HEALTH CARE TECHNOLOGY -- 0.8% Landauer, Inc. ............... 626 38,436 AMICAS, Inc.* ................ 730 3,971 LCA - Vision, Inc.* .......... 1,950 9,984 Athenahealth, Inc.*(1) ....... 2,830 128,029 LHC Group, Inc.*(1) .......... 1,397 46,953 Computer Programs & Magellan Health Services, Systems, Inc. .............. 883 40,662 Inc.*(1) ................... 2,905 118,321 Eclipsys Corp.*(1) ........... 4,361 80,766 Medcath Corp.* ............... 1,454 11,501 MedAssets, Inc.*(1) .......... 3,299 69,972 Metropolitan Health Medidata Solutions, Inc.* .... 970 15,132 Networks, Inc.* ............ 7,120 14,169 MedQuist, Inc. ............... 70 468 Molina Healthcare, Merge Healthcare, Inc.* ...... 1,000 3,360 Inc.*(1) ................... 1,088 24,883 Omnicell, Inc.* .............. 3,068 35,865 MWI Veterinary Supply, Phase Forward, Inc.* ......... 3,643 55,920 Inc.* ...................... 900 33,930 Quality Systems, Inc.(1) ..... 1,888 118,548 National HealthCare Transcend Services, Inc.* .... 340 7,262 Corp.(1) ................... 516 18,633 Vital Images, Inc.* .......... 1,210 15,355 Nighthawk Radiology ------------ Holdings, Inc.* ............ 2,522 11,425 575,310 Odyssey Healthcare, Inc.* .... 2,633 41,022 ------------ Owens & Minor, Inc.(1) ....... 3,511 150,727 LIFE SCIENCES TOOLS & SERVICES -- 0.7% PharMerica Corp.*(1) ......... 2,289 36,349 Accelrys, Inc.* .............. 2,562 14,680 Providence Service Affymetrix, Inc.* ............ 5,874 34,304 Corp.* ..................... 380 6,004 Albany Molecular PSS World Medical, Inc.* ..... 4,132 93,259 Research, Inc.* .............. 1,747 15,863 Psychiatric Solutions, Bruker Corp.* ................ 4,056 48,915 Inc.* ...................... 4,167 88,090 Cambrex Corp.* ............... 2,214 12,354 RadNet, Inc.* ................ 3,431 6,999 Dionex Corp.* ................ 1,205 89,013 RehabCare Group, Inc.* ....... 1,502 45,706 Enzo Biochem, Inc.* .......... 2,252 12,116 Res-Care, Inc.* .............. 2,075 23,240 eResearch Technology, Skilled Healthcare Group, Inc.* ...................... 2,783 16,726 Inc. - Class A* ............ 1,569 11,689 Harvard Bioscience, Inc.* .... 3,320 11,852 Kendle International, Inc.* ...................... 866 15,857 The accompanying notes are an integral part of the financial statements. 38
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ LIFE SCIENCES TOOLS & SERVICES -- (CONTINUED) PHARMACEUTICALS -- (CONTINUED) Luminex, Corp.*(1) ........... 3,668 $ 54,763 Matrixx Initiatives, Parexel International Inc.*(1) ................... 530 $ 2,237 Corp.* ..................... 4,729 66,679 Medicis Pharmaceutical Sequenom, Inc.*(1) ........... 5,148 21,313 Corp. - Class A ............ 4,687 126,783 Varian, Inc.*(1) ............. 2,186 112,667 Nektar Therapeutics* ......... 7,372 68,707 ------------ Optimer Pharmaceuticals, 527,102 Inc.*(1) ................... 2,365 26,677 ------------ Pain Therapeutics, Inc.* ..... 1,910 10,238 PHARMACEUTICALS -- 1.6% Par Pharmaceutical Cos., Acura Pharmaceuticals, Inc.* ...................... 2,600 70,356 Inc.*(1) ................... 1,700 9,061 Pozen, Inc.* ................. 2,105 12,609 Adolor Corp.* ................ 2,670 3,898 Questcor Pharmaceuticals, Ardea Biosciences, Inc.* ...................... 5,289 25,123 Inc.*(1) ................... 1,156 16,184 Salix Pharmaceuticals, ARYx Therapeutics, Inc.* ..... 5,040 16,178 Ltd.* ...................... 3,697 93,904 Auxilium Pharmaceuticals, Santarus, Inc.* .............. 3,410 15,754 Inc.* ...................... 3,741 112,155 Sucampo Pharmaceuticals, AVANIR Pharmaceuticals, Inc. - Class A* ............ 892 3,604 Inc. - Class A* ............ 7,890 14,991 SuperGen, Inc.* .............. 7,290 19,100 Biodel, Inc.*(1) ............. 1,021 4,431 The Medicines Co.* ........... 4,299 35,854 Biomimetic Therapeutics, ViroPharma, Inc.* ............ 6,274 52,639 Inc.*(1) ................... 839 10,009 Vivus, Inc.*(1) .............. 6,196 56,941 BMP Sunstone Corp.* .......... 1,953 11,113 XenoPort, Inc.* .............. 2,324 43,134 Cadence Pharmaceuticals, ------------ Inc.*(1) ................... 1,939 18,750 1,124,526 Caraco Pharmaceutical ------------ Laboratories, Ltd.* ........ 1,004 6,064 TOTAL HEALTH CARE .......................... 10,414,064 Cornerstone Therapeutics, ------------ Inc.* ...................... 2,500 15,250 INDUSTRIALS -- 15.7% Cypress Bioscience, AEROSPACE & DEFENSE -- 1.8% Inc.*(1) ................... 2,574 14,826 AAR Corp.* ................... 2,976 68,389 Depomed, Inc.* ............... 4,260 14,271 Aerovironment, Inc.* ......... 1,074 31,232 Discovery Laboratories, American Science & Inc.*(1) ................... 3,580 2,250 Engineering, Inc. .......... 694 52,633 Durect Corp.* ................ 5,105 12,609 Applied Signal Hi-Tech Pharmacal Co., Technology, Inc. ........... 1,276 24,614 Inc.* ...................... 920 25,806 Argon ST, Inc.* .............. 757 16,442 Impax Laboratories, Inc.* .... 5,320 72,352 Ascent Solar Technologies, Inspire Pharmaceuticals, Inc.*(1) ................... 2,850 15,105 Inc.* ...................... 5,754 31,762 Ceradyne, Inc.* .............. 1,872 35,961 ISTA Pharmaceuticals, Cubic Corp. .................. 1,308 48,789 Inc.* ...................... 4,590 20,930 Curtiss-Wright Corp. ......... 3,676 115,132 Javelin Pharmaceuticals, DigitalGlobe, Inc.* .......... 1,340 32,428 Inc.* ...................... 7,550 9,815 Ducommun, Inc. ............... 1,194 22,340 KV Pharmaceutical Co. - DynCorp International, Class A* ................... 4,263 15,645 Inc. - Class A* ............ 1,878 26,949 MAP Pharmaceuticals, Esterline Technologies Inc.* ...................... 264 2,516 Corp.* ..................... 2,427 98,949 GenCorp, Inc.* ............... 3,309 23,163 The accompanying notes are an integral part of the financial statements. 39
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ AEROSPACE & DEFENSE -- (CONTINUED) BUILDING PRODUCTS -- (CONTINUED) GeoEye, Inc.*(1) ............. 1,599 $ 44,580 Apogee Enterprises, HEICO Corp.(1) ............... 1,723 76,381 Inc.(1) .................... 2,037 $ 28,518 Herley Industries, Inc.* ..... 1,153 16,015 Builders FirstSource, Hexcel Corp.*(1) ............. 8,043 104,398 Inc.*(1) ................... 2,760 10,626 Ladish Co., Inc.* ............ 1,340 20,207 Gibraltar Industries, Inc.* .. 2,250 35,392 LMI Aerospace, Inc.* ......... 657 8,738 Griffon Corp.* ............... 3,599 43,980 Moog, Inc. - Class A* ........ 3,536 103,357 Insteel Industries, Inc. ..... 1,260 16,380 Orbital Sciences Corp.* ...... 4,381 66,854 NCI Building Systems, Stanley, Inc.*(1) ............ 1,042 28,561 Inc.* ...................... 9,160 16,580 Taser International, Inc.* ... 5,621 24,620 Quanex Building Teledyne Technologies, Products Corp. ............. 2,783 47,228 Inc.* ...................... 2,744 105,260 Simpson Manufacturing Triumph Group, Inc.(1) ....... 1,280 61,760 Co., Inc.(1) ............... 3,251 87,419 ------------ Trex Co., Inc.*(1) ........... 1,129 22,128 1,272,857 Universal Forest Products, ------------ Inc. ....................... 1,416 52,123 AIR FREIGHT & LOGISTICS -- 0.3% ------------ Air Transport Services 437,173 Group, Inc.* ............... 5,960 15,735 ------------ Atlas Air Worldwide COMMERCIAL SERVICES & SUPPLIES -- 2.4% Holdings, Inc.* ............ 1,174 43,732 ABM Industries, Inc. ......... 3,729 77,041 Dynamex, Inc.* ............... 500 9,050 ACCO Brands Corp.* ........... 4,800 34,944 Forward Air Corp.(1) ......... 2,141 53,632 American Ecology Corp. ....... 1,674 28,525 Hub Group, Inc. - American Reprographics Class A* ................... 2,992 80,275 Co.* ....................... 348 2,439 Pacer International, Inc.* ... 2,615 8,263 AMREP Corp.* ................. 277 3,795 ------------ APAC Customer Services, 210,687 Inc.* ...................... 2,750 16,390 ------------ ATC Technology Corp.* ........ 1,779 42,429 AIRLINES -- 0.9% Bowne & Co., Inc. ............ 2,839 18,965 AirTran Holdings, Inc.*(1) ... 9,562 49,914 Cenveo, Inc.* ................ 2,863 25,051 Alaska Air Group, Inc.* ...... 2,907 100,466 Clean Harbors, Inc.* ......... 1,667 99,370 Allegiant Travel Co.*(1) ..... 1,174 55,377 Consolidated Graphics, Hawaiian Holdings, Inc.* ..... 4,123 28,861 Inc.* ...................... 752 26,335 JetBlue Airways Corp.* ....... 20,324 110,766 Cornell Cos., Inc.* .......... 843 19,136 Republic Airways Courier Corp. ................ 824 11,742 Holdings, Inc.* ............ 3,021 22,325 Deluxe Corp. ................. 3,775 55,832 SkyWest, Inc. ................ 3,713 62,824 EnergySolutions, Inc. ........ 6,061 51,458 UAL Corp.*(1) ................ 12,342 159,335 EnerNOC, Inc.*(1) ............ 1,094 33,247 US Airways Group, Ennis, Inc. .................. 1,949 32,724 Inc.*(1) ................... 13,156 63,675 Fuel Tech, Inc.* ............. 1,231 10,057 ------------ G & K Services, Inc. - 653,543 Class A .................... 1,574 39,555 ------------ Healthcare Services BUILDING PRODUCTS -- 0.6% Group, Inc. ................ 2,270 48,714 AAON, Inc. ................... 922 17,970 Herman Miller, Inc. .......... 4,085 65,278 American Woodmark HNI Corp. .................... 3,533 97,617 Corp.(1) ................... 645 12,694 Innerworkings, Inc.*(1) ...... 1,930 11,387 Ameron International Interface, Inc. - Class A .... 4,185 34,777 Corp. ...................... 727 46,135 The accompanying notes are an integral part of the financial statements. 40
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ COMMERCIAL SERVICES & SUPPLIES -- (CONTINUED) CONSTRUCTION & ENGINEERING -- (CONTINUED) Kimball International, MYR Group, Inc.* ............. 1,550 $ 28,024 Inc. - Class B ............. 2,860 $ 24,367 Northwest Pipe Co.* .......... 861 23,126 Knoll, Inc. .................. 2,552 26,362 Orion Marine Group, M&F Worldwide Corp.* ......... 633 25,004 Inc.* ...................... 2,288 48,185 McGrath RentCorp ............. 1,520 33,987 Pike Electric Corp.* ......... 1,200 11,136 Metalico, Inc.* .............. 1,773 8,723 Sterling Construction Mine Safety Appliances Co., Inc.* ................. 675 12,947 Co ......................... 2,263 60,037 Tutor Perini Corp.* .......... 2,171 39,252 Mobile Mini, Inc.* ........... 2,938 41,396 ------------ Multi-Color Corp. ............ 681 8,315 683,584 North American ------------ Galvanizing & ELECTRICAL EQUIPMENT -- 2.3% Coating, Inc.*(1) .......... 2,520 12,222 Acuity Brands, Inc.(1) ....... 3,573 127,342 Perma-Fix Environmental Advanced Battery Services* .................. 7,250 16,458 Technologies, Inc.* ........ 3,809 15,236 Rollins, Inc. ................ 3,131 60,366 American Superconductor Schawk, Inc. ................. 1,303 17,721 Corp.*(1) .................. 3,545 144,990 Standard Parking Corp.* ...... 568 9,020 AZZ, Inc.*(1) ................ 957 31,294 Steelcase, Inc. - Class A .... 5,990 38,096 Baldor Electric Co.(1) ....... 3,877 108,905 Sykes Enterprises, Inc.* ..... 2,902 73,914 Belden, Inc. ................. 3,924 86,014 Team, Inc.* .................. 1,754 32,993 Brady Corp. - Class A ........ 3,789 113,708 Tetra Tech, Inc.* ............ 4,944 134,328 Broadwind Energy, The GEO Group, Inc.* ......... 4,193 91,743 Inc.*(1) ................... 2,530 20,468 The Standard Register China BAK Battery, Co.(1) ..................... 1,208 6,161 Inc.*(1) ................... 2,544 7,072 United Stationers, Inc.* ..... 1,909 108,527 Encore Wire Corp.(1) ......... 1,487 31,331 Viad Corp. ................... 1,265 26,097 Ener1, Inc.*(1) .............. 3,580 22,697 Waste Services, Inc.* ........ 1,897 17,282 Energy Conversion ------------ Devices, Inc.*(1) .......... 4,085 43,178 1,759,927 EnerSys, Inc.* ............... 3,197 69,918 ------------ Evergreen Solar, Inc.*(1) .... 12,477 18,840 CONSTRUCTION & ENGINEERING -- 0.9% Franklin Electric Co., Inc. .. 1,936 56,299 Argan, Inc.* ................. 70 1,007 FuelCell Energy, Inc.*(1) .... 4,724 17,762 Comfort Systems USA, Fushi Copperweld, Inc.* ...... 1,190 12,043 Inc.(1) .................... 2,501 30,862 GrafTech International, Dycom Industries, Inc.* ...... 3,277 26,314 Ltd.* ...................... 9,534 148,254 EMCOR Group, Inc.* ........... 5,282 142,086 GT Solar International, Furmanite Corp.* ............. 2,481 9,453 Inc.*(1) ................... 2,544 14,145 Granite Construction, Harbin Electric, Inc.* ....... 1,511 31,036 Inc.(1) .................... 2,760 92,902 II-VI, Inc.* ................. 1,897 60,325 Great Lakes Dredge & LaBarge, Inc.* ............... 771 9,291 Dock Corp. ................. 3,486 22,589 LSI Industries, Inc. ......... 1,623 12,789 Insituform Technologies, Microvision, Inc.*(1) ........ 6,120 19,400 Inc. - Class A* ............ 3,143 71,409 Orion Energy Systems, Integrated Electrical Inc*(1) .................... 1,038 4,557 Services, Inc.* ............ 696 4,072 Polypore International, Layne Christensen Co.* ....... 1,550 44,500 Inc.* ...................... 1,437 17,100 MasTec, Inc.*(1) ............. 4,024 50,300 Powell Industries, Inc.* ..... 709 22,355 Michael Baker Corp.* ......... 614 25,420 Power-One, Inc.*(1) .......... 5,330 23,185 The accompanying notes are an integral part of the financial statements. 41
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ ELECTRICAL EQUIPMENT -- (CONTINUED) MACHINERY -- (CONTINUED) PowerSecure International, Columbus McKinnon Inc.* ...................... 746 $ 5,379 Corp.* .................... 1,635 $ 22,334 Preformed Line Products Co. .. 194 8,497 Dynamic Materials Corp. ..... 835 16,742 Regal-Beloit Corp.(1) ........ 2,767 143,718 Energy Recovery, Inc.*(1) ... 2,029 13,960 Satcon Technology Corp.*(1) .. 1,800 5,076 EnPro Industries, Inc.*(1) .. 1,557 41,120 Smith (A.O.) Corp.(1) ........ 1,589 68,947 ESCO Technologies, Ultralife Corp.*(1) .......... 837 3,616 Inc.(1) ................... 2,262 81,093 Valence Technology, Inc.*(1) . 4,230 3,849 Federal Signal Corp. ........ 3,989 24,014 Vicor Corp.* ................. 1,799 16,731 Flanders Corp.* ............. 2,740 12,220 Woodward Governor Co. ........ 4,421 113,929 Flow International, -------------- Corp.* .................... 1,441 4,438 1,659,276 Force Protection, Inc.* ..... 6,684 34,824 -------------- FreightCar America, INDUSTRIAL CONGLOMERATES -- 0 3% Inc.(1) .................. 913 18,105 Otter Tail Corp. ............. 2,838 70,382 Graham Corp. ................ 495 10,247 Raven Industries, Inc.(1) .... 1,301 41,333 Greenbrier Cos., Inc. ....... 1,730 17,957 Seaboard Corp. ............... 27 36,423 Hurco Cos., Inc.* ........... 569 8,421 Standex International Corp. .. 918 18,442 John Bean Technologies Tredegar Industries Corp. .... 1,918 30,343 Corp ...................... 2,180 37,082 -------------- K-Tron International, 196,923 Inc.* ..................... 131 14,245 -------------- Kadant, Inc.* ............... 1,164 18,577 MACHINERY -- 2.7% Kaydon Corp.(1) ............. 2,752 98,412 3-D Systems Corp.* ........... 1,445 16,328 L.B. Foster Co. - Actuant Corp. - Class A ...... 5,020 93,021 Class A* .................. 856 25,517 Alamo Group, Inc. ............ 769 13,188 Lindsay Corp. ............... 988 39,372 Albany International Met-Pro Corp. ............... 770 8,177 Corp. - Class A ............ 2,170 48,738 Middleby Corp.*(1) .......... 1,394 68,334 Altra Holdings, Inc.* ........ 1,663 20,538 Mueller Industries, Inc. .... 2,756 68,459 American Railcar Mueller Water Products, Industries, Inc. ........... 589 6,491 Inc. - Class A ............ 10,600 55,120 Ampco-Pittsburgh Corp. ....... 586 18,477 NACCO Industries, Inc. - Astec Industries, Inc.* ...... 1,421 38,282 Class A ................... 506 25,199 Badger Meter, Inc. ........... 1,218 48,501 Nordson Corp. ............... 2,527 154,602 Barnes Group, Inc. ........... 3,755 63,459 Omega Flex, Inc. ............ 150 2,100 Blount International, Inc.* .. 2,970 29,997 PMFG, Inc.* ................. 1,247 20,214 Briggs & Stratton Corp. ...... 3,748 70,125 RBC Bearings, Inc.* ......... 1,797 43,721 Cascade Corp. ................ 613 16,851 Robbins & Myers, Inc. ....... 2,123 49,933 Chart Industries, Inc.* ...... 2,339 38,710 Sauer-Danfoss, Inc.* ........ 1,244 14,940 China Fire & Security SmartHeat, Inc.* ............ 1,090 15,827 Group, Inc.*(1) ............ 1,071 14,491 Sun Hydraulics Corp.(1) ..... 665 17,456 CIRCOR International, Inc. ... 1,418 35,705 Tecumseh Products Co. - Clarcor, Inc.(1) ............. 3,878 125,802 Class A* .................. 1,442 16,857 Colfax Corp.*(1) ............. 545 6,562 Tennant Co. ................. 1,521 39,835 The Gorman-Rupp Co.(1) ...... 1,150 31,786 Titan International, Inc.(1) ................... 2,835 22,992 TriMas Corp.* ............... 790 5,348 Twin Disc, Inc. ............. 833 8,697 The accompanying notes are an integral part of the financial statements. 42
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ MACHINERY -- (CONTINUED) PROFESSIONAL SERVICES -- (CONTINUED) Watts Water Technologies, Korn/Ferry International, Inc. - Class A ............. 2,264 $ 70,003 Inc.* ...................... 3,694 $ 60,951 -------------- MPS Group, Inc.* ............ 7,626 104,781 1,983,546 Navigant Consulting, -------------- Inc.* ..................... 3,672 54,566 MARINE -- 0.2% Odyssey Marine American Commercial Exploration, Inc.* ........ 3,565 5,027 Lines, Inc.*(1) ............ 564 10,338 On Assignment, Inc.* ........ 2,935 20,985 Eagle Bulk Shipping, Resources Connection, Inc.*(1) ................... 4,978 24,641 Inc.* ..................... 3,675 77,983 Genco Shipping & School Specialty, Inc.*(1) .. 1,716 40,137 Trading, Ltd.*(1) .......... 2,069 46,304 Spherion Corp.* ............. 3,874 21,772 Horizon Lines, Inc. - The Advisory Board Co.* ..... 1,188 36,424 Class A(1) ................. 2,278 12,689 The Corporate Executive International Shipholding Board Co. ................. 2,710 61,842 Corp ....................... 375 11,651 Trueblue, Inc.* ............. 3,561 52,738 TBS International, Ltd. - Volt Information Sciences, Class A* ................... 634 4,660 Inc.* ..................... 1,493 14,930 Ultrapetrol Bahamas, VSE Corp. ................... 296 13,344 Ltd.* ...................... 1,180 5,617 Watson Wyatt Worldwide, -------------- Inc. - Class A ............ 3,267 155,248 115,900 ------------ -------------- 1,171,878 PROFESSIONAL SERVICES -- 1.6% ------------ Acacia Research - Acacia ROAD & RAIL -- 1.0% Technologies* .............. 3,160 28,788 Amerco, Inc.* ................ 722 35,898 Administaff, Inc. ............ 1,851 43,665 Arkansas Best Corp. .......... 2,126 62,568 CBIZ, Inc.* .................. 2,707 20,844 Avis Budget Group, CDI Corp. .................... 1,113 14,413 Inc.*(1) ................... 8,290 108,765 COMSYS IT Partners, Celadon Group, Inc.* ......... 1,858 20,159 Inc.* ...................... 1,814 16,126 Dollar Thrifty Automotive CoStar Group, Inc.*(1) ....... 1,639 68,461 Group, Inc.*(1) .............. 1,640 42,000 CRA International, Inc.* ..... 707 18,842 Genesee & Wyoming, Diamond Management & Inc. - Class A* ............ 3,017 98,475 Technology Heartland Express, Inc.(1) ... 3,788 57,843 Consultants, Inc. ............ 1,750 12,898 Knight Transportation, Exponent, Inc.* .............. 777 21,632 Inc.(1) .................... 3,357 64,756 Franklin Covey Co.* .......... 2,570 16,191 Marten Transport, Ltd.* ...... 1,279 22,958 GP Strategies Corp.* ......... 2,050 15,437 Old Dominion Freight Heidrick & Struggles Line, Inc.* ................ 2,277 69,904 International, Inc. ........ 1,560 48,734 Patriot Transportation Hill International, Inc.* .... 1,739 10,851 Holding, Inc.* ............... 100 9,446 Huron Consulting Group, Saia, Inc.* .................. 1,179 17,473 Inc.* ...................... 1,742 40,136 Universal Truckload ICF International, Inc.* ..... 697 18,680 Services, Inc. ............. 380 6,878 Kelly Services, Inc. - Werner Enterprises, Class A* ................... 2,277 27,165 Inc.(1) .................... 3,621 71,660 Kforce, Inc.* ................ 2,263 28,287 The accompanying notes are an integral part of the financial statements. 43
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ ROAD & RAIL -- (CONTINUED) COMMUNICATIONS EQUIPMENT -- (CONTINUED) YRC Worldwide, Inc.*(1) ...... 4,989 $ 4,190 Blue Coat Systems, -------------- Inc.*(1) ................... 3,174 $ 90,586 692,973 Cogo Group, Inc.* ............ 1,589 11,711 -------------- Comtech TRADING COMPANIES & DISTRIBUTORS -- 0.7% Telecommunications Aceto Corp. .................. 1,723 8,873 Corp.* ..................... 2,199 77,075 Aircastle, Ltd. .............. 3,375 33,244 DG FastChannel, Inc.* ........ 1,327 37,063 Applied Industrial Digi International, Inc.* .... 1,982 18,076 Technologies, Inc. ......... 3,180 70,183 Emcore Corp.*(1) ............. 10,950 11,716 Beacon Roofing Supply, EMS Technologies, Inc.* ...... 1,273 18,458 Inc.* ...................... 3,424 54,784 Emulex Corp.* ................ 6,910 75,319 DXP Enterprises, Inc.* ....... 390 5,097 Extreme Networks, Inc.* ...... 7,086 20,337 H&E Equipment Services, Globecomm Systems, Inc.* ...................... 1,405 14,738 Inc.* ...................... 1,996 15,609 Houston Wire & Cable Harmonic, Inc.* .............. 7,542 47,741 Co ......................... 1,199 14,268 Harris Stratex Networks, Interline Brands, Inc.* ...... 2,748 47,458 Inc.* ...................... 5,088 35,158 Kaman Corp. .................. 2,202 50,844 Hughes Communications, Lawson Products, Inc. ........ 430 7,590 Inc.* ...................... 654 17,024 RSC Holdings, Inc.* .......... 184 1,295 Infinera Corp.* .............. 5,946 52,741 Rush Enterprises, Inc. - InterDigital, Inc.*(1) ....... 3,408 90,448 Class A* ................... 1,870 22,234 Ixia* ........................ 3,095 23,027 TAL International Group, KVH Industries, Inc.* ........ 1,580 23,305 Inc.(1) .................... 1,089 14,408 Loral Space & Textainer Group Communications, Holdings, Ltd.(1) .......... 264 4,462 Inc.* ...................... 781 24,687 Titan Machinery, Inc.*(1) .... 780 9,001 Netgear, Inc.* ............... 2,857 61,968 United Rentals, Inc.*(1) ..... 5,050 49,541 Network Equipment Watsco, Inc.(1) .............. 2,153 105,454 Technologies, Inc.* ........ 130 527 -------------- Oplink Communications, 513,474 Inc.* ...................... 1,661 27,224 -------------- Opnext, Inc.* ................ 3,388 6,437 TOTAL INDUSTRIALS .......................... 11,351,741 Palm, Inc.*(1) ............... 13,346 133,994 -------------- Parkervision, Inc.* .......... 1,499 2,743 INFORMATION TECHNOLOGY -- 18.6% PC-Tel, Inc.* ................ 1,868 11,059 COMMUNICATIONS EQUIPMENT -- 3.2% Plantronics, Inc.(1) ......... 3,816 99,140 3Com Corp.* .................. 31,066 232,995 Polycom, Inc.* ............... 5,791 144,601 Acme Packet, Inc.* ........... 3,423 37,653 Powerwave Technologies, ADC Telecommunications, Inc.* ...................... 12,570 15,838 Inc.* ...................... 8,030 49,866 Riverbed Technology, Adtran, Inc.(1) .............. 4,681 105,557 Inc.* ...................... 4,464 102,538 Airvana, Inc.*(1) ............ 3,407 25,893 Seachange International, Anaren, Inc.* ................ 1,241 18,677 Inc.* ...................... 2,330 15,308 Arris Group, Inc.* ........... 10,011 114,426 ShoreTel, Inc.* .............. 3,330 19,247 Aruba Networks, Inc.* ........ 4,025 42,906 Sonus Networks, Inc.* ........ 14,300 30,173 Avocent Corp.* ............... 3,479 86,975 Sycamore Networks, Inc. ...... 1,596 33,360 Bel Fuse, Inc. - Class B ..... 937 20,136 Symmetricom, Inc.* ........... 4,128 21,466 Bigband Networks, Inc.* ...... 4,057 13,956 Tekelec* ..................... 3,943 60,249 Black Box Corp. .............. 1,388 39,336 The accompanying notes are an integral part of the financial statements. 44
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ COMMUNICATIONS EQUIPMENT -- (CONTINUED) ELECTRONIC EQUIPMENT, INSTRUMENTS & UTStarcom, Inc.*(1) .......... 8,620 $ 18,878 COMPONENTS -- (CONTINUED) Viasat, Inc.* ................ 1,832 58,221 Comverge, Inc.* .............. 1,438 $ 16,163 -------------- CPI International, Inc.* ..... 331 4,382 2,341,428 CTS Corp. .................... 2,978 28,648 -------------- Daktronics, Inc. ............. 2,528 23,283 COMPUTERS & PERIPHERALS -- 0 8% DTS, Inc.*(1) ................ 1,447 49,502 3Par, Inc.* .................. 1,948 23,084 Echelon Corp.*(1) ............ 2,699 31,200 ActivIdentity Corp.* ......... 1,510 3,548 Electro Rent Corp. ........... 1,504 17,356 Adaptec, Inc.* ............... 10,777 36,103 Electro Scientific Avid Technology, Inc.* ....... 2,507 31,989 Industries, Inc.* .......... 2,473 26,758 Compellent Technologies, Faro Technologies, Inc.* ..... 1,033 22,148 Inc.*(1) ................... 964 21,864 ICx Technologies, Inc.*(1) ... 1,506 14,337 Cray, Inc.* .................. 2,840 18,233 Insight Enterprises, Inc.* ... 4,000 45,680 Electronics for Imaging, IPG Photonics Corp.*(1) ...... 1,883 31,521 Inc.* ...................... 3,608 46,940 L-1 Identity Solutions, Imation Corp.* ............... 2,568 22,393 Inc.*(1) ................... 6,127 45,891 Immersion Corp.* ............. 1,927 8,806 Littelfuse, Inc.* ............ 1,605 51,601 Intermec, Inc.* .............. 4,982 64,068 Maxwell Technologies, Intevac, Inc.* ............... 2,196 25,188 Inc.*(1) ................... 1,848 32,968 Isilon Systems, Inc.* ........ 1,340 9,192 Measurement Specialties, Netezza Corp.* ............... 4,168 40,430 Inc.* ...................... 1,551 15,588 Novatel Wireless, Inc.*(1) ... 2,481 19,774 Mercury Computer Quantum Corp.* ............... 17,270 50,601 Systems, Inc.* ............. 1,855 20,424 Rimage Corp.* ................ 794 13,768 Methode Electronics, Inc. .... 3,657 31,743 Silicon Graphics MTS Systems Corp. ............ 1,280 36,787 International Corp.* ....... 2,180 15,282 Multi-Fineline Electronix, STEC, Inc.*(1) ............... 1,936 31,634 Inc.* ...................... 683 19,377 Stratasys, Inc.*(1) .......... 1,450 25,056 Newport Corp.* ............... 2,882 26,486 Super Micro Computer, OSI Systems, Inc.* ........... 1,079 29,435 Inc.* ...................... 1,598 17,770 Park Electrochemical Synaptics, Inc.*(1) .......... 2,783 85,299 Corp.(1) ................... 1,782 49,254 -------------- PC Connection, Inc.* ......... 1,259 8,498 611,022 PC Mall, Inc.* ............... 1,392 7,266 -------------- Plexus Corp.* ................ 3,148 89,718 ELECTRONIC EQUIPMENT, INSTRUMENTS & Radisys Corp.* ............... 2,192 20,934 COMPONENTS -- 2.2% Rofin-Sinar Technologies, Agilysys, Inc. ............... 1,680 15,288 Inc.* ...................... 2,403 56,735 Anixter International, Rogers Corp.* ................ 1,442 43,707 Inc.* ...................... 2,545 119,869 ScanSource, Inc.* ............ 2,071 55,296 Benchmark Electronics, SMART Modular Inc.* ...................... 5,130 97,008 Technologies (WWH), Brightpoint, Inc.* ........... 4,435 32,597 Inc.*(1) ................... 1,500 9,435 Checkpoint Systems, Spectrum Control, Inc.* ...... 1,740 16,478 Inc.* ...................... 3,293 50,218 Synnex Corp.* ................ 1,442 44,212 China Security & Surveillance Technitrol, Inc. ............. 3,222 14,112 Technology, Inc.*(1) ....... 2,287 17,473 TTM Technologies, Inc.* ...... 3,359 38,729 Cogent, Inc.* ................ 2,647 27,502 Universal Display Cognex Corp. ................. 2,980 52,806 Corp.*(1) .................. 2,357 29,133 Coherent, Inc.* .............. 1,724 51,255 The accompanying notes are an integral part of the financial statements. 45
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ ELECTRONIC EQUIPMENT, INSTRUMENTS & INTERNET SOFTWARE & SERVICES -- (CONTINUED) COMPONENTS -- (CONTINUED) support.com, Inc.* ........... 5,191 $ 13,704 Zygo Corp.* .................. 270 $ 1,817 Switch And Data Facilities -------------- Co., Inc.* ................. 1,572 31,770 1,570,618 TechTarget, Inc.*(1) ......... 1,335 7,516 -------------- Terremark Worldwide, INTERNET SOFTWARE & SERVICES -- 1.9% Inc.* ...................... 4,376 29,932 Art Technology Group, The Knot, Inc.* .............. 3,104 31,257 Inc.* ...................... 10,960 49,430 United Online, Inc. .......... 6,813 48,985 comScore, Inc.* .............. 1,585 27,817 ValueClick, Inc.* ............ 7,039 71,235 Constant Contact, Inc.*(1) ... 1,723 27,568 Vocus, Inc.* ................. 1,274 22,932 DealerTrack Holdings, Web.com Group, Inc.* ......... 2,789 18,212 Inc.*(1) ................... 3,278 61,594 Zix Corp.*(1) ................ 4,540 7,763 Dice Holdings, Inc.* ......... 990 6,485 ------------ Digital River, Inc.* ......... 3,191 86,125 1,361,931 DivX, Inc.* .................. 2,112 11,912 ------------ Earthlink, Inc. .............. 7,693 63,929 IT SERVICES -- 2.3% GSI Commerce, Inc.* .......... 2,044 51,897 Acxiom Corp.* ................ 5,601 75,165 InfoSpace, Inc.* ............. 2,274 19,488 CACI International, Inc. - Innodata Isogen, Inc.* ....... 1,670 9,252 Class A* ................... 2,253 110,059 Internap Network Cass Information Systems, Services Corp.* ............ 3,975 18,683 Inc ........................ 905 27,512 Internet Brands, Inc. - China Information Class A*(1) .................. 1,310 10,257 Security Technology, Internet Capital Group, Inc.* ...................... 3,149 19,398 Inc.* ...................... 2,984 19,844 CIBER, Inc.* ................. 6,412 22,121 j2 Global Computer Task Group, Communications, Inc.* ...... 3,375 68,681 Inc.* ...................... 1,060 8,491 Keynote Systems, Inc. ........ 1,429 15,590 CSG Systems Limelight Networks, International, Inc.* ......... 3,170 60,515 Inc.* ...................... 2,732 10,737 CyberSource Corp.* ........... 5,824 117,121 Liquidity Services, Inc.* .... 800 8,056 Dynamics Research LivePerson, Inc.* ............ 4,390 30,598 Corp.* ..................... 1,090 11,565 LogMeIn, Inc.*(1) ............ 710 14,165 Euronet Worldwide, Inc.* ..... 4,026 88,371 LoopNet, Inc.* ............... 1,742 17,315 ExlService Holdings, Marchex, Inc. - Class B ...... 2,015 10,236 Inc.* ...................... 755 13,711 MercadoLibre, Inc.* .......... 2,133 110,639 Forrester Research, Inc.* .... 1,225 31,789 ModusLink Global Gartner, Inc.* ............... 4,681 84,445 Solutions, Inc.* ........... 4,189 39,419 Global Cash Access Move, Inc.* .................. 12,490 20,733 Holdings, Inc.* ............ 3,501 26,222 NIC, Inc. .................... 3,413 31,195 Heartland Payment OpenTable, Inc.*(1) .......... 570 14,512 Systems, Inc. .............. 2,659 34,913 Openwave Systems, Inc.* ...... 8,500 19,380 iGate Corp. .................. 1,878 18,780 Perficient, Inc.* ............ 2,866 24,160 infoGROUP, Inc.* ............. 2,927 23,474 Rackspace Hosting, Integral Systems, Inc.* ...... 939 8,132 Inc.*(1) ................... 4,847 101,060 Lionbridge Technologies, RealNetworks, Inc.* .......... 6,407 23,770 Inc.* ...................... 2,610 6,003 Saba Software, Inc.* ......... 3,490 14,449 Mantech International SAVVIS, Inc.* ................ 2,822 39,649 Corp. - Class A* ........... 1,641 79,227 MAXIMUS, Inc. ................ 1,452 72,600 The accompanying notes are an integral part of the financial statements. 46
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ IT SERVICES -- (CONTINUED) SEMICONDUCTORS & SEMICONDUCTOR MoneyGram International, EQUIPMENT -- (CONTINUED) Inc.* ...................... 6,700 $ 19,296 DSP Group, Inc.* ............. 2,095 $ 11,795 NCI, Inc. - Class A*(1) ...... 342 9,456 Entegris, Inc.* .............. 11,230 59,294 Ness Technologies, Inc.* ..... 3,251 15,930 Entropic Communications, Online Resources Corp.* ...... 2,332 12,266 Inc.* ...................... 2,520 7,736 RightNow Technologies, Exar Corp.* .................. 3,050 21,686 Inc.*(1) ................... 1,661 28,852 FEI Co.*(1) .................. 3,122 72,930 Sapient Corp.* ............... 7,290 60,288 FormFactor, Inc.* ............ 3,671 79,881 SRA International, Inc. - Hittite Microwave Corp.* ..... 1,648 67,156 Class A* ................... 3,060 58,446 IXYS Corp.* .................. 1,502 11,145 StarTek, Inc.* ............... 140 1,047 Kopin Corp.* ................. 5,818 24,319 Syntel, Inc. ................. 895 34,037 Kulicke & Soffa Teletech Holdings, Inc.* ..... 2,258 45,228 Industries, Inc.* .......... 5,490 29,591 The Hackett Group, Inc.* ..... 3,913 10,878 Lattice Semiconductor Tier Technologies, Inc. - Corp.* ..................... 9,110 24,597 Class B* ................... 2,530 20,240 Micrel, Inc.(1) .............. 2,876 23,583 TNS, Inc.* ................... 1,816 46,653 Microsemi Corp.* ............. 6,652 118,073 Unisys Corp.*(1) ............. 3,451 133,071 Microtune, Inc.* ............. 4,887 11,045 VeriFone Holdings, MIPS Technologies, Inc.* ..... 3,870 16,912 Inc.*(1) ................... 6,020 98,608 MKS Instruments, Inc.* ....... 3,619 63,007 Virtusa Corp.* ............... 1,109 10,047 Monolithic Power Wright Express Corp.* ........ 3,196 101,825 Systems, Inc.* ............. 2,587 62,010 -------------- Netlogic Microsystems, 1,645,782 Inc.*(1) ................... 1,447 66,938 -------------- NVE Corp.*(1) ................ 389 16,070 SEMICONDUCTORS & SEMICONDUCTOR Omnivision Technologies, EQUIPMENT -- 3.7% Inc.* ...................... 4,211 61,186 Actel Corp.* ................. 2,023 24,033 Pericom Semiconductor Advanced Analogic Corp.* ..................... 1,293 14,908 Technologies, Inc.* ........ 3,703 14,590 Photronics, Inc.* ............ 5,070 22,562 Advanced Energy PLX Technology, Inc.* ........ 2,083 6,728 Industries, Inc.*(1) ....... 2,622 39,540 Power Integrations, Inc. ..... 1,914 69,593 Amkor Technology, RF Micro Devices, Inc.* ...... 21,690 103,461 Inc.*(1) ................... 9,224 66,044 Rubicon Technology, ANADIGICS, Inc.* ............. 5,750 24,265 Inc.*(1) ................... 1,162 23,600 Applied Micro Circuits Rudolph Technologies, Corp.* ..................... 5,294 39,546 Inc.* ...................... 3,027 20,341 Atheros Communications, Semtech Corp.* ............... 5,130 87,261 Inc.*(1) ................... 5,046 172,775 Sigma Designs, Inc.*(1) ...... 1,515 16,211 ATMI, Inc.* .................. 2,542 47,332 Silicon Image, Inc.* ......... 4,565 11,778 Brooks Automation, Inc.* ..... 4,294 36,843 Silicon Storage Cabot Microelectronics Technology, Inc.* .......... 7,224 18,493 Corp.* ..................... 1,711 56,395 Skyworks Solutions, Cavium Networks, Inc.* ....... 2,894 68,964 Inc.*(1) ................... 13,306 188,812 Ceva, Inc.* .................. 1,672 21,502 Standard Microsystems Cirrus Logic, Inc.* .......... 4,630 31,577 Corp.* ..................... 1,664 34,578 Cohu, Inc. ................... 1,913 26,686 Supertex, Inc.* .............. 1,155 34,419 Cymer, Inc.* ................. 2,276 87,353 Techwell, Inc.* .............. 1,080 14,256 Diodes, Inc.* ................ 2,385 48,773 The accompanying notes are an integral part of the financial statements. 47
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ SEMICONDUCTORS & SEMICONDUCTOR SOFTWARE -- (CONTINUED) EQUIPMENT -- (CONTINUED) i2 Technologies, Inc.*(1) .... 843 $ 16,118 Tessera Techonologies, Informatica Corp.* ........... 6,386 165,142 Inc.* ...................... 4,056 $ 94,383 Interactive Intelligence, Trident Microsystems, Inc.* ...................... 763 14,070 Inc.* ...................... 1,490 2,771 Jack Henry & Associates, TriQuint Semiconductor, Inc. ....................... 6,679 154,418 Inc.* ...................... 11,265 67,590 JDA Software Group, Ultratech, Inc.* ............. 2,441 36,273 Inc.* ...................... 1,995 50,813 Veeco Instruments, Kenexa Corp.* ................ 1,518 19,810 Inc.*(1) ................... 2,390 78,966 Lawson Software, Inc.*(1) .... 8,617 57,303 Volterra Semiconductor Manhattan Associates, Corp.* ..................... 1,712 32,733 Inc.* ...................... 1,915 46,017 Zoran Corp.* ................. 4,594 50,764 Mentor Graphics Corp.* ....... 7,388 65,236 ------------ MicroStrategy, Inc. - 2,685,653 Class A* ................... 759 71,361 ------------ Monotype Imaging SOFTWARE -- 4.5% Holdings, Inc.* ............ 908 8,199 ACI Worldwide, Inc.* ......... 2,934 50,318 Net 1 UEPS Technologies, Actuate Corp.* ............... 3,993 17,090 Inc.* ...................... 2,211 42,938 Advent Software, Inc.*(1) .... 1,307 53,234 Netscout Systems, Inc.* ...... 1,811 26,513 American Software, NetSuite, Inc.*(1) ........... 1,163 18,585 Inc. - Class A ............. 2,584 15,504 OpenTV Corp. - ArcSight, Inc.* .............. 1,610 41,184 Class A* ................... 9,070 12,335 Ariba, Inc.*(1) .............. 6,939 86,876 Opnet Technologies, Inc. ..... 1,159 14,128 AsiaInfo Holdings, Parametric Technology Inc.*(1) ................... 2,129 64,871 Corp.* ..................... 8,727 142,599 Blackbaud, Inc.(1) ........... 3,392 80,153 Pegasystems, Inc. ............ 1,309 44,506 Blackboard, Inc.* ............ 2,480 112,567 Phoenix Technologies, Bottomline Technologies, Ltd.* ...................... 1,467 4,034 Inc.* ...................... 1,867 32,803 Progress Software Corp.* ..... 3,453 100,862 Callidus Software, Inc.* ..... 1,998 6,034 PROS Holdings, Inc.* ......... 976 10,102 China TransInfo QAD, Inc. .................... 1,518 9,275 Technology Corp.*(1) ....... 30 245 Quest Software, Inc.* ........ 4,545 83,628 Chordiant Software, Inc.* .... 2,613 7,186 Radiant Systems, Inc.* ....... 2,301 23,930 CommVault Systems, Renaissance Learning, Inc.* ...................... 3,351 79,385 Inc. ....................... 550 6,248 Concur Technologies, Rosetta Stone, Inc.*(1) ...... 790 14,180 Inc.*(1) ................... 3,253 139,066 S1 Corp.* .................... 3,317 21,627 Deltek, Inc.* ................ 1,655 12,876 Smith Micro Software, DemandTec, Inc.*(1) .......... 1,475 12,936 Inc.* ...................... 2,249 20,556 Double-Take Software, SolarWinds, Inc.* ............ 890 20,479 Inc.* ...................... 1,326 13,247 Solera Holdings, Inc. ........ 5,615 202,196 Ebix, Inc.*(1) ............... 446 21,778 SonicWALL, Inc.* ............. 3,981 30,295 Epicor Software Corp.* ....... 3,628 27,645 Sourcefire, Inc.* ............ 1,728 46,224 EPIQ Systems, Inc.*(1) ....... 2,541 35,549 SuccessFactors, Inc.* ........ 3,898 64,629 Fair Isaac & Co., Inc. ....... 4,064 86,604 Symvx Technologies, FalconStor Software, Inc.* ...................... 2,355 12,953 Inc.* ...................... 2,261 9,180 GSE Systems, Inc.* ........... 2,770 15,180 The accompanying notes are an integral part of the financial statements. 48
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ SOFTWARE -- (CONTINUED) CHEMICALS -- (CONTINUED) Synchronoss NL Industries, Inc. .......... 842 $ 5,843 Technologies, Inc.* ........ 949 $ 15,004 Olin Corp. ................... 6,225 109,062 Take-Two Interactive OM Group, Inc.* .............. 2,576 80,861 Software, Inc.*(1) ......... 6,721 67,546 Omnova Solutions, Inc.* ...... 2,970 18,206 Taleo Corp. - Class A* ....... 2,331 54,825 PolyOne Corp.* ............... 7,679 57,362 TeleCommunication Quaker Chemical Corp. ........ 732 15,108 Systems, Inc. - Rockwood Holdings, Class A* ................... 2,852 27,607 Inc.* ...................... 4,012 94,523 The Ultimate Software Sensient Technologies Group, Inc.* ............... 2,037 59,827 Corp. ...................... 3,622 95,259 THQ, Inc.*(1) ................ 5,103 25,719 ShengdaTech, Inc.* ........... 1,854 11,365 TIBCO Software, Inc.* ........ 13,044 125,614 Solutia, Inc.* ............... 8,655 109,919 TiVo, Inc.* .................. 8,090 82,356 Spartech Corp. ............... 2,618 26,861 Tyler Technologies, Stepan Co. ................... 629 40,766 Inc.*(1) ................... 2,939 58,515 W.R. Grace & Co.* ............ 5,895 149,438 Unica Corp.* ................. 840 6,510 Westlake Chemical Vasco Data Security Corp.(1) ................... 1,558 38,841 International, Inc.* ....... 865 5,424 Zep, Inc. .................... 1,614 27,954 Websense, Inc.* .............. 3,661 63,921 Zoltek Cos., Inc.* ........... 2,437 23,152 ------------ ------------ 3,255,688 1,595,386 ------------ ------------ TOTAL INFORMATION TECHNOLOGY ............... 13,472,122 CONSTRUCTION MATERIALS -- 0.1% ------------ Headwaters, Inc.* ............ 3,605 23,505 MATERIALS -- 4.7% Texas Industries, Inc.(1) .... 1,910 66,831 CHEMICALS -- 2.2% United States Lime & A. Schulman, Inc. ............ 1,878 37,898 Minerals, Inc.* ............ 196 6,768 American Vanguard US Concrete, Inc.* ........... 3,565 3,244 Corp. ...................... 1,064 8,831 ------------ Ampal-American Israel - 100,348 Class A* ................... 410 1,107 ------------ Arch Chemicals, Inc. ......... 1,848 57,066 CONTAINERS & PACKAGING -- 0.5% Balchem Corp. ................ 1,567 52,510 AEP Industries, Inc.* ........ 297 11,369 Calgon Carbon Corp.* ......... 4,721 65,622 Boise, Inc.* ................. 3,250 17,258 China Green Agriculture, BWAY Holding Co.* ............ 931 17,894 Inc.*(1) ................... 440 6,468 Graphic Packaging Ferro Corp. .................. 5,792 47,726 Holding Co.* ............... 6,460 22,416 H.B. Fuller Co. .............. 3,859 87,792 Myers Industries, Inc. ....... 2,122 19,310 Hawkins, Inc.(1) ............. 360 7,859 Rock-Tenn Co. - Class A ...... 2,842 143,265 ICO, Inc. .................... 1,335 9,759 Silgan Holdings, Inc. ........ 2,250 130,230 Innophos Holdings, Inc. ...... 1,595 36,669 ------------ Innospec, Inc. ............... 2,112 21,310 361,742 Koppers Holdings, Inc. ....... 1,774 54,001 ------------ Landec Corp.* ................ 1,667 10,402 METALS & MINING -- 1.1% LSB Industries, Inc.*(1) ..... 1,471 20,741 A.M. Castle & Co.(1) ......... 1,470 20,124 Minerals Technologies, Allied Nevada Gold Inc. ....................... 1,375 74,896 Corp.* ..................... 3,773 56,897 NewMarket Corp.(1) ........... 786 90,209 AMCOL International Corp.(1) ................... 1,990 56,556 The accompanying notes are an integral part of the financial statements. 49
\ WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ METALS & MINING -- (CONTINUED) TELECOMMUNICATION SERVICES -- 1.1% Brush Engineered DIVERSIFIED TELECOMMUNICATION SERVICES -- 0.8% Materials, Inc.* ........... 1,592 $ 29,516 AboveNet, Inc.*(1) ........... 990 $ 64,390 Century Aluminum Alaska Communications Co.*(1) .................... 3,700 59,903 Systems Group, Inc.(1) ..... 3,144 25,089 China Precision Steel, Atlantic Tele-Network, Inc.*(1) ................... 5,530 11,337 Inc. ....................... 760 41,808 Coeur d'Alene Mines Cbeyond, Inc.*(1) ............ 2,019 31,799 Corp. - Class A*(1) ........ 5,360 96,802 Cincinnati Bell, Inc.* ....... 16,340 56,373 General Moly, Inc.*(1) ....... 7,200 14,976 Cogent Communications General Steel Holdings, Group, Inc.*(1) ............ 3,423 33,751 Inc.*(1) ................... 745 3,285 Consolidated Haynes International, Inc. ... 954 31,453 Communications Hecla Mining Co.*(1) ......... 18,278 112,958 Holdings, Inc. ............. 1,809 31,657 Horsehead Holding General Communication, Corp.* ..................... 2,838 36,184 Inc. - Class A* ............ 3,892 24,831 Kaiser Aluminum Corp. ........ 1,331 55,396 Global Crossing, Ltd.* ....... 2,040 29,070 Olympic Steel, Inc.(1) ....... 625 20,363 HickoryTech Corp. ............ 460 4,062 Paramount Gold and inContact, Inc.* ............. 4,860 14,240 Silver Corp.*(1) ........... 10,770 15,617 Iowa Telecommunications RTI International Services, Inc.(1) .......... 2,847 47,716 Metals, Inc.*(1) ........... 2,602 65,492 Neutral Tandem, Inc.* ........ 2,830 64,382 Stillwater Mining Co.* ....... 3,124 29,616 PAETEC Holdings Universal Stainless & Corp.* ..................... 9,640 40,006 Alloy* ..................... 876 16,521 Premiere Global Services, US Gold Corp.* ............... 7,630 18,922 Inc.* ...................... 5,518 45,523 Worthington Industries, SureWest Inc.(1) .................... 4,849 63,376 Communications* ............ 1,430 14,243 ------------ Windstream Corp.(1) .......... 1,189 13,067 815,294 ------------ ------------ 582,007 PAPER & FOREST PRODUCTS -- 0.8% ------------ Buckeye Technologies, WIRELESS TELECOMMUNICATION SERVICES -- 0.3% Inc.* ...................... 3,498 34,141 NTELOS Holdings Corp. ........ 1,945 34,660 Clearwater Paper Corp.* ...... 727 39,963 Shenandoah Deltic Timber Corp. .......... 835 38,560 Telecommunications Domtar Corp.* ................ 3,120 172,879 Co. ........................ 1,976 40,212 Glatfelter ................... 3,523 42,805 Syniverse Holdings, Inc.* .... 5,480 95,790 KapStone Paper and USA Mobility, Inc. ........... 1,988 21,888 Packaging Corp.* ........... 500 4,925 ------------ Louisiana-Pacific Corp.* ..... 8,936 62,373 192,550 Neenah Paper, Inc. ........... 1,421 19,823 ------------ Schweitzer-Mauduit TOTAL TELECOMMUNICATION SERVICES........... 774,557 International, Inc. ........ 1,224 86,108 ------------ Wausau Paper Corp. ........... 3,701 42,932 UTILITIES -- 3.2% ------------ ELECTRIC UTILITIES -- 1.3% 544,509 ALLETE, Inc.(1) .............. 2,226 72,746 ------------ Central Vermont Public TOTAL MATERIALS ............... 3,417,279 Service Corp. .............. 874 18,179 ------------ Cleco Corp. .................. 4,695 128,314 The accompanying notes are an integral part of the financial statements. 50
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ ELECTRIC UTILITIES -- (CONTINUED) WATER UTILITIES -- (CONTINUED) El Paso Electric Co.* ........ 3,170 $ 64,288 California Water Service IDACORP, Inc. ................ 3,792 121,154 Group ...................... 1,574 $ 57,955 MGE Energy, Inc. ............. 1,759 62,867 Connecticut Water PNM Resources, Inc. .......... 6,307 79,784 Service, Inc. .............. 913 22,615 Portland General Electric Consolidated Water Co. ........................ 5,837 119,133 Co., Inc. .................. 1,087 15,533 The Empire District Middlesex Water Co. .......... 991 17,471 Electric Co. ............... 2,826 52,931 Pennichuck Corp. ............. 240 5,071 UIL Holdings Corp. ........... 2,066 58,013 SJW Corp. .................... 1,038 23,428 UniSource Energy Corp. ....... 3,165 101,881 Southwest Water Co.(1) ....... 2,270 13,370 Unitil Corp. ................. 870 19,993 York Water Co. ............... 600 8,706 ------------ ------------ 899,283 231,188 ------------ ------------ GAS UTILITIES -- 1.2% TOTAL UTILITIES ............................ 2,296,015 Chesapeake Utilities ------------ Corp. ...................... 447 14,326 TOTAL COMMON STOCK New Jersey Resources (Cost $56,369,055) ........................ 72,361,694 Corp.(1) ................... 3,247 121,438 ------------ Nicor, Inc. .................. 3,509 147,729 CALL WARRANTS -- 0.0% Northwest Natural Gas Greenhunter Energy, Inc. ..... Co. ........................ 1,598 71,974 Expires 09/15/11 Piedmont Natural Gas (Cost $0) .................. 48 -- Co. ........................ 5,534 148,035 ------------ South Jersey Industries, RIGHTS -- 0.0% Inc. ....................... 1,991 76,016 Builders FirstSource, Inc.* Southwest Gas Corp. .......... 3,398 96,945 (Cost $0) .................. 4,447 1,088 The Laclede Group, Inc. ...... 1,768 59,705 ------------ WGL Holdings, Inc. ........... 3,740 125,440 SHORT-TERM INVESTMENTS -- 0.1% ------------ BlackRock Liquidity Funds 861,608 TempFund Portfolio - ------------ Institutional Series INDEPENDENT POWER PRODUCERS & (Cost $98,183) ............. 98,183 98,183 ENERGY TRADERS -- 0.0% ------------ US Geothermal, Inc.* ......... 3,140 4,804 SHORT-TERM INVESTMENTS HELD ------------ AS COLLATERAL FOR LOANED MULTI-UTILITIES -- 0.4% SECURITIES -- 34.3% Avista Corp.(1) .............. 4,238 91,498 BlackRock Liquidity Funds Black Hills Corp.(1) ......... 3,298 87,826 TempFund CH Energy Group, Inc. ........ 1,215 51,662 Portfolio .................... 13,225,184 13,225,184 NorthWestern Corp. ........... 2,619 68,146 Institutional Money ------------ Market Trust ................. 11,593,343 11,593,343 299,132 ------------ ------------ WATER UTILITIES -- 0.3% American States Water Co. ........................ 1,437 50,884 Artesian Resources Corp. - Class A ............ 290 5,310 Cadiz, Inc.*(1) .............. 906 10,845 The accompanying notes are an integral part of the financial statements. 51
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE (NOTE 2) ------------ TOTAL SHORT-TERM INVESTMENTS HELD AS COLLATERAL FOR LOANED SECURITIES (Cost $24,818,527)(3) .................... $ 24,818,527 ------------ TOTAL INVESTMENTS -- 134.4% (Cost $81,285,765)+(2) .................. 97,279,492 LIABILITIES IN EXCESS OF OTHER ASSETS -- (34.4)% .................. (24,875,193) ------------ NET ASSETS -- 100.0% ....................... $ 72,404,299 ============ - ---------- * Non-income producing security. + The cost for Federal income tax purposes is $83,346,854. At December 31, 2009, net unrealized appreciation was $13,932,638. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $16,624,416, and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $2,691,778. (1) Security partially or fully on loan. (2) At December 31, 2009, the market value of securities on loan for the Small-Cap Strategy Fund was $23,183,729. (3) See Note 6 in the Notes to Financial Statements. The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 - LEVEL 3 - TOTAL LEVEL 1 - SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 PRICES INPUTS INPUTS ----------------- ----------- ----------- ------------ INVESTMENTS IN SECURITIES: Common Stocks $72,361,694 $72,274,719 $86,975 $-- Rights 1,088 1,088 -- -- Short-Term Investments . 24,916,710 24,916,710 -- -- ----------- ----------- ------- --- Total $97,279,492 $97,192,517 $86,975 $-- =========== =========== ======= === The accompanying notes are an integral part of the financial statements. 52
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ COMMON STOCK -- 97.0% HOTELS, RESTAURANTS & LEISURE -- (CONTINUED) CONSUMER DISCRETIONARY -- 9.3% Burger King Holdings, AUTO COMPONENTS -- 0.1% Inc. ...................... 520 $ 9,786 Autoliv, Inc. ............... 370 $ 16,043 Carnival Corp.* ............. 10,240 324,506 BorgWarner, Inc.(1) ......... 340 11,295 Chipotle Mexican Grill, Gentex Corp. ................ 640 11,424 Inc. - Class A* ........... 100 8,816 Johnson Controls, Inc. ...... 2,990 81,447 Choice Hotels The Goodyear Tire & International, Inc.(1) .... 60 1,900 Rubber Co.* ............... 610 8,601 Darden Restaurants, TRW Automotive Inc.(1) ................... 720 25,250 Holdings Corp.*(1) ........ 620 14,806 International Game WABCO Holdings, Inc. ........ 200 5,158 Technology ................ 1,140 21,398 ------------ International Speedway 148,774 Corp. - Class A ........... 70 1,992 ------------ Las Vegas Sands Corp.*(1) ... 970 14,492 AUTOMOBILES -- 0.4% Marriott International, Ford Motor Co.*(1) .......... 57,770 577,700 Inc. - Class A(1) ......... 1,472 40,112 Harley-Davidson, Inc.(1) .... 980 24,696 McDonald's Corp. ............ 31,849 1,988,652 Thor Industries, Inc. ....... 280 8,792 MGM MIRAGE* ................. 1,010 9,211 ------------ Panera Bread Co. - 611,188 Class A* .................. 45 3,014 ------------ Penn National Gaming, DISTRIBUTORS -- 0.0% Inc.* ..................... 280 7,610 Genuine Parts Co.(1) ........ 910 34,543 Royal Caribbean Cruises, LKQ Corp.* .................. 340 6,661 Ltd.*(1) .................. 480 12,134 ------------ Scientific Games Corp. - 41,204 Class A*(1) ............... 200 2,910 ------------ Starbucks Corp.* ............ 3,020 69,641 DIVERSIFIED CONSUMER SERVICES -- 0.2% Starwood Hotels & Apollo Group, Inc. - Resorts Worldwide, Class A*(1) ............... 467 28,291 Inc.(1) ................... 930 34,010 Brink's Home Security Tim Hortons, Inc. ........... 40 1,220 Holdings, Inc.* ........... 120 3,917 Wendy's/Arby's Group, Career Education Inc. - Class A ............ 1,200 5,628 Corp.*(1) ................. 8,645 201,515 WMS Industries, Inc.*(1) .... 70 2,800 DeVry, Inc. ................. 150 8,509 Wyndham Worldwide H&R Block, Inc. ............. 1,510 34,156 Corp.(1) .................. 21,280 429,218 Hillenbrand, Inc. ........... 200 3,768 Wynn Resorts, Ltd.(1) ....... 170 9,899 ITT Educational Yum! Brands, Inc. ........... 2,330 81,480 Services, Inc.*(1) ........ 120 11,515 ------------ Service Corp. ............... 3,117,273 International ............... 1,670 13,677 ------------ Strayer Education, Inc.(1) .. 30 6,375 HOUSEHOLD DURABLES -- 0.3% Weight Watchers Black & Decker Corp.(1) ..... 380 24,635 International, Inc. ....... 360 10,498 D.R. Horton, Inc.(1) ........ 1,770 19,240 ------------ Fortune Brands, Inc.(1) ..... 750 32,400 322,221 Garmin, Ltd.(1) ............. 8,200 251,740 ------------ HOTELS, RESTAURANTS & LEISURE -- 2.1% Boyd Gaming Corp.*(1) ....... 280 2,344 Brinker International, Inc ....................... 620 9,250 The accompanying notes are an integral part of the financial statements. 53
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ HOUSEHOLD DURABLES -- (CONTINUED) MEDIA -- (CONTINUED) Harman International Comcast Corp. - Special Industries, Inc. ........... 290 $ 10,231 Class A .................... 28,900 $ 462,689 Jarden Corp.(1) .............. 460 14,219 CTC Media, Inc.* ............. 20 298 KB Home ...................... 400 5,472 DIRECTV - Class A*(1) ........ 12,710 423,878 Leggett & Platt, Inc.(1) ..... 1,020 20,808 Discovery Communications, Lennar Corp. - Inc. - Class A*(1) ......... 25 767 Class A(1) ................. 1,420 18,133 Discovery Communications, M.D.C. Holdings, Inc. ........ 230 7,139 Inc. - Class C* ............ 875 23,205 Mohawk Industries, DISH Network Corp. ........... 1,540 31,986 Inc.*(1) ................... 250 11,900 DreamWorks Animation Newell Rubbermaid, SKG, Inc. - Class A* ....... 190 7,590 Inc.(1) .................... 1,130 16,961 Gannett Co., Inc. ............ 1,770 26,284 NVR, Inc.*(1) ................ 30 21,321 Interactive Data Corp. ....... 240 6,072 Pulte Homes, Inc.* ........... 1,710 17,100 John Wiley & Sons, Inc. - Toll Brothers, Inc.* ......... 750 14,108 Class A .................... 200 8,376 Whirlpool Corp.(1) ........... 340 27,425 Lamar Advertising Co. - -------------- Class A*(1) ................ 300 9,327 512,832 Liberty Global, Inc. - -------------- Class A*(1) ................ 10,780 236,190 INTERNET & CATALOG RETAIL -- 0.3% Liberty Media - Starz - Amazon.com, Inc.*(1) ......... 1,210 162,769 Series A* .................. 176 8,122 Expedia, Inc.* ............... 940 24,168 Liberty Media Corp. - Liberty Media Corp. - Capital Class A* ........... 770 18,388 Interactive - Class A* ..... 20,480 222,003 Marvel Entertainment, Netflix, Inc.* ............... 80 4,411 Inc.* ...................... 220 11,898 Priceline.com, Inc.*(1) ...... 130 28,405 Meredith Corp.(1) ............ 360 11,106 -------------- Morningstar, Inc.*(1) ........ 100 4,834 441,756 News Corp. - Class A ......... 11,820 161,816 -------------- Omnicom Group, Inc.(1) ....... 1,640 64,206 LEISURE EQUIPMENT & PRODUCTS -- 0.0% Regal Entertainment Eastman Kodak Co.*(1) ........ 370 1,561 Group - Class A .............. 770 11,119 Hasbro, Inc. ................. 740 23,724 Scripps Networks Mattel, Inc. ................. 2,070 41,359 Interactive, Inc. - -------------- Class A .................... 280 11,620 66,644 The Interpublic Group -------------- of Cos., Inc.* ............. 1,180 8,708 MEDIA -- 2.6% The McGraw-Hill Cos., Cablevision Systems Inc.(1) .................... 2,300 77,073 New York Group - The New York Times Class A .................... 9,840 254,069 Co. - Class A*(1) .......... 120 1,483 CBS Corp. - Class B(1) ....... 3,980 55,919 The Walt Disney Co. .......... 29,980 966,855 Central European Media The Washington Post Enterprises, Ltd. - Co. - Class B .............. 40 17,584 Class A* ................... 160 3,778 Time Warner Cable, Clear Channel Outdoor Inc.(1) .................... 1,094 45,281 Holdings, Inc. - Time Warner, Inc. ............ 6,946 202,406 Class A*(1) ................ 500 5,195 Comcast Corp. - Class A(1) ................. 34,660 584,368 The accompanying notes are an integral part of the financial statements. 54
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ MEDIA -- (CONTINUED) SPECIALTY RETAIL -- (CONTINUED) Viacom, Inc. - Class B* ...... 1,840 $ 54,703 OfficeMax, Inc.* ............. 180 $ 2,284 Virgin Media, Inc. ........... 1,090 18,345 PetSmart, Inc. ............... 560 14,946 Warner Music Group RadioShack Corp. ............. 610 11,895 Corp.* ..................... 480 2,717 Ross Stores, Inc.(1) ......... 1,700 72,607 -------------- Signet Jewelers, Ltd.* ....... 220 5,878 3,838,255 Staples, Inc.(1) ............. 3,360 82,622 -------------- The Gap, Inc. ................ 14,970 313,622 MULTILINE RETAIL -- 0.4% The Home Depot, Inc. ......... 10,220 295,665 Big Lots, Inc.* .............. 224 6,491 The Sherwin-Williams Dollar Tree, Inc.* ........... 271 13,089 Co.(1) ..................... 608 37,483 Family Dollar Stores, The TJX Cos., Inc. ........... 38,290 1,399,499 Inc.(1) .................... 726 20,205 Tiffany & Co. ................ 440 18,920 J.C. Penney Co., Inc.(1) ..... 1,090 29,005 Urban Outfitters, Inc.* ...... 310 10,847 Kohl's Corp.*(1) ............. 1,160 62,559 Williams-Sonoma, Inc. ........ 620 12,884 Macy's, Inc.(1) .............. 1,480 24,805 ------------ Nordstrom, Inc.(1) ........... 900 33,822 3,232,150 Sears Holdings Corp.*(1) ..... 460 38,387 ------------ Target Corp. ................. 7,750 374,867 TEXTILES, APPAREL & LUXURY GOODS -- 0.7% -------------- Coach, Inc. .................. 1,330 48,585 603,230 Hanesbrands, Inc.*(1) ........ 160 3,858 -------------- Jones Apparel Group, SPECIALTY RETAIL -- 2.2% Inc ........................ 230 3,694 Aaron's, Inc.(1) ............. 200 5,546 Nike, Inc. - Class B(1) ...... 14,940 987,086 Abercrombie & Fitch Phillips-Van Heusen Co. - Class A .............. 400 13,940 Corp ....................... 180 7,322 Advance Auto Parts, Inc. ..... 350 14,168 Polo Ralph Lauren Corp. ...... 300 24,294 Aeropostale, Inc.*(1) ........ 160 5,448 V.F. Corp. ................... 550 40,282 American Eagle ------------ Outfitters, Inc. ........... 900 15,282 1,115,121 AutoNation, Inc.* ............ 580 11,107 ------------ AutoZone, Inc.* .............. 180 28,453 TOTAL CONSUMER DISCRETIONARY ............... 14,050,648 Barnes & Noble, Inc.(1) ...... 150 2,861 ------------ Bed Bath & Beyond, CONSUMER STAPLES -- 13.1% Inc.* ...................... 940 36,312 BEVERAGES -- 3.5% Best Buy Co., Inc. ........... 2,190 86,417 Brown-Forman Corp. - Carmax, Inc.* ................ 600 14,550 Class B(1) ................. 498 26,678 Chico's FAS, Inc.* ........... 290 4,075 Central European Dick's Sporting Goods, Distribution Corp.* .......... 180 5,114 Inc.*(1) ................... 300 7,461 Coca-Cola Enterprises, Foot Locker, Inc.(1) ......... 830 9,246 Inc ........................ 13,070 277,084 GameStop Corp. - Constellation Brands, Class A*(1) ................ 620 13,603 Inc. Class A* .............. 1,030 16,408 Guess?, Inc. ................. 370 15,651 Dr Pepper Snapple Limited Brands, Inc. ......... 1,590 30,592 Group, Inc. ................ 630 17,829 Lowe's Cos., Inc. ............ 26,200 612,818 Hansen Natural Corp.* ........ 284 10,906 O'Reilly Automotive, Molson Coors Brewing Inc.* ...................... 350 13,342 Co. - Class B .............. 560 25,289 Office Depot, Inc.* .......... 1,880 12,126 Pepsi Bottling Group, Inc. ....................... 920 34,500 The accompanying notes are an integral part of the financial statements. 55
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ BEVERAGES -- (CONTINUED) FOOD PRODUCTS -- (CONTINUED) PepsiAmericas, Inc. .......... 100 $ 2,926 Tyson Foods, Inc. - PepsiCo, Inc. ................ 36,804 2,237,683 Class A .................... 1,390 $ 17,055 The Coca-Cola Co.(1) ......... 46,931 2,675,067 ------------ -------------- 1,925,582 5,329,484 ------------ -------------- HOUSEHOLD PRODUCTS -- 3.4% FOOD & STAPLES RETAILING -- 3 8% Church & Dwight Co., BJ's Wholesale Club, Inc.(1) .................... 8,246 498,471 Inc.* ...................... 100 3,271 Colgate-Palmolive Co.(1) ..... 20,338 1,670,767 Costco Wholesale Corp.(1) .... 24,550 1,452,624 Energizer Holdings, CVS Caremark Corp. ........... 21,710 699,279 Inc.*(1) ................... 340 20,835 Safeway, Inc. ................ 2,460 52,373 Kimberly-Clark Corp. ......... 6,940 442,147 SUPERVALU, Inc. .............. 1,290 16,396 Procter & Gamble Co. ......... 39,156 2,374,028 SYSCO Corp. .................. 3,530 98,628 The Clorox Co. ............... 758 46,238 The Kroger Co. ............... 2,706 55,554 ------------ Wal-Mart Stores, Inc. ........ 53,263 2,846,907 5,052,486 Walgreen Co. ................. 13,630 500,494 ------------ Whole Foods Market, PERSONAL PRODUCTS -- 0.2% Inc.* ...................... 420 11,529 Alberto-Culver Co.(1) ........ 200 5,858 -------------- Avon Products, Inc. .......... 2,400 75,600 5,737,055 Estee Lauder Cos., Inc. - -------------- Class A .................... 600 29,016 FOOD PRODUCTS -- 1.3% Herbalife, Ltd. .............. 2,580 104,671 Archer-Daniels-Midland Mead Johnson Nutrition Co. ........................ 2,790 87,355 Co. - Class A .............. 2,720 118,864 Bunge, Ltd.(1) ............... 520 33,192 NBTY, Inc.* .................. 180 7,837 Campbell Soup Co. ............ 1,706 57,663 ------------ ConAgra Foods, Inc. .......... 2,370 54,628 341,846 Corn Products ------------ International, Inc. ........ 270 7,892 TOBACCO -- 0.9% Dean Foods Co.* .............. 520 9,381 Altria Group, Inc. ........... 20,130 395,152 Del Monte Foods Co. .......... 20,180 228,841 Lorillard, Inc. .............. 1,220 97,880 Flowers Foods, Inc.(1) ....... 200 4,752 Philip Morris General Mills, Inc. .......... 2,922 206,907 International, Inc. ........ 14,130 680,925 Green Mountain Coffee Reynolds American, Inc. ...... 3,930 208,172 Roasters, Inc.*(1) ......... 80 6,518 ------------ H.J. Heinz Co. ............... 1,930 82,527 1,382,129 Hormel Foods Corp. ........... 430 16,533 ------------ Kellogg Co. .................. 1,720 91,504 TOTAL CONSUMER STAPLES ..................... 19,768,582 Kraft Foods, Inc. - ------------ Class A .................... 21,607 587,278 ENERGY -- 10.9% McCormick & Co., Inc. ........ 630 22,762 ENERGY EQUIPMENT & SERVICES -- 3.3% Ralcorp Holdings, Inc.* ...... 250 14,928 Atwood Oceanics, Inc.* ....... 200 7,170 Sara Lee Corp.(1) ............ 26,100 317,898 Baker Hughes, Inc.(1) ........ 1,270 51,410 Smithfield Foods, BJ Services Co. .............. 620 11,532 Inc.*(1) ................... 410 6,228 Cameron International The Hershey Co. .............. 1,040 37,222 Corp.* ..................... 28,030 1,171,654 The J.M. Smucker Co. ......... 559 34,518 Diamond Offshore Drilling, Inc.(1) .......... 900 88,578 Dresser-Rand Group, Inc.*(1) ................... 200 6,322 The accompanying notes are an integral part of the financial statements. 56
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ ENERGY EQUIPMENT & SERVICES -- (CONTINUED) OIL, GAS & CONSUMABLE FUELS -- (CONTINUED) Ensco International Cimarex Energy Co. ........... 260 $ 13,772 Plc(1) ..................... 630 $ 25,162 CNX Gas Corp.* ............... 20 590 Exterran Holdings, Comstock Resources, Inc.*(1) ................... 100 2,145 Inc.* ...................... 130 5,274 FMC Technologies, Concho Resources, Inc.* ...... 180 8,082 Inc.*(1) ................... 430 24,871 ConocoPhillips ............... 23,120 1,180,738 Global Industries, Ltd.* ..... 10 71 Consol Energy, Inc. .......... 600 29,880 Halliburton Co. .............. 4,360 131,192 Continental Resources, Helix Energy Solutions Inc.* ...................... 160 6,862 Group, Inc.* ............... 530 6,228 Denbury Resources, Helmerich & Payne, Inc. ...... 680 27,118 Inc.*(1) ................... 630 9,324 Nabors Industries, Ltd.* ..... 12,030 263,337 Devon Energy Corp. ........... 8,260 607,110 National Oilwell Varco, El Paso Corp. ................ 43,450 427,113 Inc.(1) .................... 8,180 360,656 Encore Acquisition Co.* ...... 150 7,203 Oceaneering International, EOG Resources, Inc. .......... 940 91,462 Inc.* ...................... 140 8,193 EXCO Resources, Inc. ......... 720 15,286 Oil States International, Exxon Mobil Corp. ............ 47,990 3,272,438 Inc.* ...................... 4,160 163,446 Forest Oil Corp.* ............ 300 6,675 Patterson-UTI Energy, Frontier Oil Corp. ........... 530 6,381 Inc.(1) .................... 730 11,206 Frontline, Ltd. .............. 610 16,665 Pride International, Hess Corp. ................... 1,360 82,280 Inc.*(1) ................... 5,340 170,399 Holly Corp.(1) ............... 310 7,945 Rowan Cos., Inc.*(1) ......... 340 7,698 Marathon Oil Corp. ........... 12,940 403,987 Schlumberger, Ltd. ........... 29,844 1,942,546 Mariner Energy, Inc.* ........ 200 2,322 SEACOR Holdings, Inc.* ....... 60 4,575 Massey Energy Co. ............ 320 13,443 Seahawk Drilling, Inc.* ...... 30 676 Murphy Oil Corp. ............. 780 42,276 Smith International, Inc. .... 990 26,898 Newfield Exploration Superior Energy Co.* ....................... 340 16,398 Services, Inc.* ............ 240 5,830 Noble Energy, Inc. ........... 780 55,552 Tidewater, Inc. .............. 260 12,467 Occidental Petroleum Transocean, Ltd.* ............ 4,400 364,320 Corp. ...................... 18,190 1,479,756 Unit Corp.*(1) ............... 220 9,350 Overseas Shipholding Weatherford Group, Inc.(1) ............. 70 3,077 International, Ltd.* ....... 30 537 Patriot Coal Corp.*(1) ....... 36 557 ------------ Peabody Energy Corp. ......... 990 44,758 4,905,587 Petrohawk Energy Corp.* ...... 750 17,993 ------------ Pioneer Natural OIL, GAS & CONSUMABLE FUELS -- 7.6% Resources Co.(1) ........... 310 14,933 Alpha Natural Plains Exploration & Resources, Inc.* ........... 316 13,708 Production Co.* ............ 391 10,815 Anadarko Petroleum Quicksilver Resources, Corp. ...................... 1,810 112,980 Inc.*(1) ................... 290 4,353 Apache Corp.(1) .............. 3,150 324,985 Range Resources Corp.(1) ..... 450 22,432 Arch Coal, Inc. .............. 550 12,238 SandRidge Energy, Inc.* ...... 430 4,055 Cabot Oil & Gas Corp. ........ 340 14,821 Southern Union Co. ........... 510 11,577 Chesapeake Energy Southwestern Energy Corp.(1) ................... 2,280 59,006 Co.* ....................... 1,128 54,370 Chevron Corp. ................ 28,240 2,174,198 Spectra Energy Corp. ......... 4,060 83,271 The accompanying notes are an integral part of the financial statements. 57
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ OIL, GAS & CONSUMABLE FUELS -- (CONTINUED) CAPITAL MARKETS -- (CONTINUED) St. Mary Land & The Bank of New York Exploration Co. ............ 170 $ 5,821 Mellon Corp.(1) ............ 24,160 $ 675,755 Sunoco, Inc. ................. 870 22,707 The Charles Schwab Teekay Corp. ................. 520 12,069 Corp. ...................... 75,160 1,414,511 Tesoro Corp.(1) .............. 1,040 14,092 Waddell & Reed Valero Energy Corp. .......... 4,950 82,912 Financial, Inc. - W&T Offshore, Inc.(1) ........ 210 2,457 Class A .................... 440 13,438 Whiting Petroleum ------------ Corp.* ..................... 130 9,289 4,315,291 Williams Cos., Inc. .......... 16,220 341,918 ------------ XTO Energy, Inc. ............. 4,460 207,524 COMMERCIAL BANKS -- 1.2% ------------ Associated Banc-Corp.(1) ..... 885 9,744 11,491,730 Bancorpsouth, Inc. ........... 310 7,272 ------------ Bank of Hawaii Corp. ......... 330 15,530 TOTAL ENERGY .............................. 16,397,317 BB&T Corp.(1) ................ 3,440 87,273 ------------ BOK Financial Corp.(1) ....... 170 8,078 FINANCIALS -- 12.2% CapitalSource, Inc.(1) ....... 2,340 9,290 CAPITAL MARKETS -- 2.9% City National Corp. .......... 190 8,664 Affiliated Managers Comerica, Inc.(1) ............ 540 15,968 Group, Inc.*(1) ............ 220 14,817 Commerce Bancshares, Ameriprise Financial, Inc.(1) .................... 297 11,500 Inc. ....................... 1,260 48,913 Cullen/Frost Bankers, BlackRock, Inc.(1) ........... 1,060 246,132 Inc. ....................... 240 12,000 Eaton Vance Corp.(1) ......... 570 17,334 Fifth Third Bancorp .......... 2,880 28,080 Federated Investors, First Horizon National Inc.(1) .................... 520 14,300 Corp.* ..................... 709 9,507 Franklin Resources, Inc.(1) .. 830 87,440 Fulton Financial Corp.(1) .... 990 8,633 GLG Partners, Inc.* .......... 370 1,191 Huntington Bancshares, Goldman Sachs Group, Inc ........................ 2,181 7,961 Inc.(1) .................... 5,070 856,019 KeyCorp ...................... 3,380 18,759 Greenhill & Co., Inc.(1) ..... 110 8,826 M&T Bank Corp.(1) ............ 2,230 149,165 Invesco, Ltd. .............. 1,870 43,926 Marshall & Ilsley Corp. ...... 1,790 9,755 Investment Technology PNC Financial Services Group, Inc.* ............... 230 4,531 Group, Inc.(1) ............. 1,860 98,189 Janus Capital Group, Popular, Inc. ................ 5,890 13,311 Inc.(1) .................... 900 12,105 Regions Financial Corp. ...... 3,596 19,023 Jefferies Group, Inc.*(1) .... 860 20,408 SunTrust Banks, Inc.(1) ...... 1,690 34,290 Lazard, Ltd. - Class A ....... 300 11,391 Synovus Financial Legg Mason, Inc. ............. 610 18,398 Corp.(1) ................... 1,590 3,259 Morgan Stanley ............... 10,660 315,536 TCF Financial Corp.(1) ....... 710 9,670 Northern Trust Corp. ......... 6,080 318,592 U.S. Bancorp(1) .............. 7,500 168,825 Raymond James Valley National Financial, Inc.(1) ......... 510 12,123 Bancorp(1) ................. 1,144 16,165 SEI Investments Co. .......... 640 11,213 Webster Financial Corp. ...... 110 1,306 State Street Corp. ........... 1,590 69,229 Wells Fargo & Co. ............ 37,495 1,011,990 T. Rowe Price Group, Zions Bancorp(1) ............. 590 7,570 Inc.(1) .................... 1,170 62,302 ------------ TD Ameritrade Holding 1,800,777 Corp.* ..................... 870 16,861 ------------ The accompanying notes are an integral part of the financial statements. 58
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ CONSUMER FINANCE -- 0.6% INSURANCE -- (CONTINUED) American Express Co.(1) ...... 10,260 $ 415,735 Assurant, Inc. ............... 950 $ 28,006 AmeriCredit Corp.*(1) ........ 1,300 24,752 AXIS Capital Holdings, Capital One Financial Ltd. ....................... 1,450 41,194 Corp. ...................... 4,030 154,510 Brown & Brown, Inc. .......... 470 8,446 Discover Financial Chubb Corp. .................. 7,650 376,227 Services(1) ................ 18,500 272,135 Cincinnati Financial SLM Corp.* ................... 1,660 18,708 Corp. ...................... 1,316 34,532 The Student Loan Corp. ....... 120 5,589 CNA Financial Corp.*(1) ...... 1,150 27,600 ------------ Endurance Specialty 891,429 Holdings, Ltd. ............. 600 22,338 ------------ Erie Indemnity Co. - DIVERSIFIED FINANCIAL SERVICES -- 3.2% Class A .................... 270 10,535 Bank of America Corp.(1) ..... 90,030 1,355,852 Everest Re Group, Ltd. ....... 420 35,986 Citigroup, Inc. .............. 48,580 160,800 Fidelity National CME Group, Inc. .............. 260 87,347 Financial, Inc. - Interactive Brokers Class A .................... 1,120 15,075 Group, Inc. - First American Corp. ......... 630 20,859 Class A* ................... 310 5,493 Genworth Financial, Intercontinental Inc. - Class A* ............ 14,510 164,688 Exchange, Inc.* ............ 200 22,460 Hartford Financial JPMorgan Chase & Co. ......... 75,720 3,155,252 Services Group, Inc. ....... 3,650 84,899 Leucadia National Corp.* ..... 520 12,371 HCC Insurance Moody's Corp.(1) ............. 1,260 33,768 Holdings, Inc. ............. 770 21,537 MSCI, Inc.* .................. 240 7,632 Lincoln National Corp. ....... 1,710 42,545 NYSE Euronext, Inc. .......... 1,240 31,372 Loews Corp. .................. 9,330 339,145 The NASDAQ OMX Markel Corp.*(1) ............. 50 17,000 Group, Inc.* ............... 830 16,450 Marsh & McLennan ------------ Cos., Inc. ................. 2,630 58,070 4,888,797 MBIA, Inc.*(1) ............... 1,150 4,577 ------------ Mercury General Corp. ........ 340 13,348 INSURANCE -- 3.1% MetLife, Inc. ................ 17,601 622,195 ACE, Ltd.* ................... 7,180 361,872 Old Republic AFLAC, Inc. .................. 10,460 483,775 International Corp. ........ 2,320 23,293 Alleghany Corp.* ............. 30 8,280 OneBeacon Insurance Allied World Assurance Group, Ltd. ................ 550 7,579 Holdings, Ltd. ............. 330 15,203 PartnerRe, Ltd. .............. 1,160 86,606 American Financial Protective Life Corp. ........ 1,070 17,709 Group, Inc. ................ 1,040 25,948 Prudential Financial, Inc. ... 3,610 179,634 American International Reinsurance Group of Group, Inc.* ............... 200 5,996 America, Inc. .............. 530 25,254 American National RenaissanceRe Insurance Co. .............. 160 19,110 Holdings, Ltd. ............. 370 19,666 AON Corp.(1) ................. 1,200 46,008 StanCorp Financial Arch Capital Group, Group, Inc. ................ 430 17,209 Ltd.* ...................... 580 41,499 The Allstate Corp. ........... 5,130 154,105 Arthur J. Gallagher & The Hanover Insurance Co. ........................ 630 14,181 Group, Inc. ................ 330 14,662 Aspen Insurance Holdings, Ltd. ............. 790 20,106 The accompanying notes are an integral part of the financial statements. 59
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ INSURANCE -- (CONTINUED) REAL ESTATE INVESTMENT TRUSTS -- (CONTINUED) The Principal Financial Health Care Property Group, Inc. ................ 2,570 $ 61,783 Investors, Inc.(1) ......... 1,900 $ 58,026 The Progressive Corp.* ....... 3,710 66,743 Health Care REIT, Inc.(1) .... 750 33,240 The Travelers Cos., Inc. ..... 10,430 520,040 Hospitality Properties Torchmark Corp.(1) ........... 630 27,688 Trust ...................... 550 13,041 TransAtlantic Holdings, Host Hotels & Resorts, Inc. ....................... 560 29,182 Inc.*(1) ................... 2,365 27,602 Unitrin, Inc. ................ 440 9,702 HRPT Properties Trust(1) ..... 1,770 11,452 Unum Group ................... 12,640 246,733 Kimco Realty Corp.(1) ........ 1,530 20,701 Validus Holdings, Ltd. ....... 570 15,356 Liberty Property Trust(1) .... 670 21,447 W.R. Berkley Corp. ........... 1,480 36,467 Mack-Cali Realty Corp. ....... 500 17,285 White Mountains Nationwide Health Insurance Group, Ltd. ...... 30 9,980 Properties, Inc.(1) ........ 630 22,163 XL Capital, Ltd. - Plum Creek Timber Co., Class A(1) ................. 2,920 53,524 Inc.(1) .................... 1,010 38,138 ------------ ProLogis(1) .................. 2,820 38,606 4,653,695 Public Storage(1) ............ 710 57,829 ------------ Rayonier, Inc. ............... 410 17,286 REAL ESTATE INVESTMENT TRUSTS -- 0.9% Realty Income Corp.(1) ....... 690 17,878 Alexandria Real Estate Regency Centers Corp.(1) ..... 460 16,128 Equities, Inc.(1) .......... 250 16,073 Senior Housing Properties AMB Property Corp. ........... 810 20,695 Trust(1) ................... 840 18,371 Annaly Mortgage Simon Property Group, Management, Inc.(1) ........ 17,720 307,442 Inc.(1) .................... 1,536 122,548 Apartment Investment & SL Green Realty Corp.(1) ..... 380 19,091 Management Co. - Taubman Centers, Inc. ........ 300 10,773 Class A(1) ................. 560 8,915 The Macerich Co.(1) .......... 637 22,900 AvalonBay UDR, Inc.(1) ................. 780 12,823 Communities, Inc.(1) ....... 502 41,219 Ventas, Inc.(1) .............. 930 40,678 Boston Properties, Inc. ...... 630 42,254 Vornado Realty Trust(1) ...... 884 61,827 Brandywine Realty Walter Investment Trust(1) ................... 1,130 12,882 Management Corp. ........... 43 616 BRE Properties, Inc.(1) ...... 470 15,548 Weingarten Realty, Inc.(1) ... 760 15,040 Camden Property Trust(1) ..... 370 15,677 ------------ Chimera Investment 1,370,743 Corp. ...................... 1,640 6,363 ------------ Corporate Office REAL ESTATE MANAGEMENT & DEVELOPMENT -- 0.0% Properties Trust ........... 320 11,722 CB Richard Ellis Group, Digital Realty Trust, Inc. - Class A*(1) ......... 1,060 14,384 Inc.(1) .................... 390 19,609 Forest City Enterprises, Douglas Emmett, Inc. ......... 640 9,120 Inc. - Class A*(1) ......... 400 4,712 Duke Realty Corp.(1) ......... 1,270 15,456 Jones Lang LaSalle, Equity Residential(1) ........ 1,470 49,657 Inc.(1) .................... 180 10,872 Essex Property Trust, The St. Joe Co.*(1) .......... 220 6,356 Inc.(1) .................... 210 17,566 ------------ Federal Realty 36,324 Investment Trust(1) ........ 370 25,056 ------------ The accompanying notes are an integral part of the financial statements. 60
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ THRIFTS & MORTGAGE FINANCE -- 0.3% HEALTH CARE EQUIPMENT & SUPPLIES -- (CONTINUED) Capitol Federal Becton, Dickinson & Co. ...... 1,200 $ 94,632 Financial(1) ............... 304 $ 9,564 Boston Scientific Corp.* ..... 5,830 52,470 First Niagara Financial C.R. Bard, Inc. .............. 480 37,392 Group, Inc. ................ 890 12,380 CareFusion Corp.* ............ 1,040 26,010 Guaranty Financial Covidien PLC ................. 9,560 457,829 Group, Inc.* ............... 1 -- DENTSPLY International, Hudson City Bancorp, Inc.(1) .................... 520 18,288 Inc. ....................... 20,282 278,472 Edwards Lifesciences New York Community Corp.* ..................... 133 11,551 Bancorp, Inc.(1) ........... 3,070 44,546 Gen-Probe, Inc.*(1) .......... 410 17,589 People's United Financial, Hill-Rom Holdings, Inc. ...... 260 6,237 Inc.* ...................... 1,653 27,605 Hologic, Inc.* ............... 840 12,180 TFS Financial Corp. .......... 250 3,035 Hospira, Inc.* ............... 5,650 288,150 Tree.com, Inc.*(1) ........... 50 457 Idexx Laboratories, Washington Federal, Inc. ..... 670 12,958 Inc.*(1) ................... 190 10,154 ------------ Intuitive Surgical, Inc.* .... 100 30,332 389,017 Inverness Medical ------------ Innovations, Inc.*(1) ...... 200 8,302 TOTAL FINANCIALS ........................... 18,346,073 Kinetic Concepts, Inc.* ...... 340 12,801 ------------ Medtronic, Inc. .............. 5,750 252,885 HEALTH CARE -- 13.4% ResMed, Inc.*(1) ............. 180 9,409 BIOTECHNOLOGY -- 2.0% St. Jude Medical, Inc.*(1) ... 1,440 52,963 Abraxis Bioscience, Stryker Corp. ................ 19,300 972,141 Inc.*(1) ................... 39 1,581 Teleflex, Inc. ............... 260 14,011 Alexion Pharmaceuticals, The Cooper Cos., Inc. ........ 350 13,342 Inc.* ...................... 220 10,740 Varian Medical Systems, Amgen, Inc.* ................. 17,164 970,967 Inc.*(1) ................... 480 22,488 Amylin Pharmaceuticals, Zimmer Holdings, Inc.* ....... 930 54,972 Inc.* ...................... 220 3,122 ------------ Biogen Idec, Inc.* ........... 1,320 70,620 2,652,617 BioMarin Pharmaceutical, ------------ Inc.*(1) ................... 240 4,514 HEALTH CARE PROVIDERS & SERVICES -- 2.2% Celgene Corp.* ............... 1,370 76,282 Aetna, Inc. .................. 10,990 348,383 Cephalon, Inc.* .............. 203 12,669 AmerisourceBergen Dendreon Corp.* .............. 310 8,147 Corp.(1) ................... 7,920 206,474 Genzyme Corp.* ............... 970 47,540 Brookdale Senior Living, Gilead Sciences, Inc.* ....... 40,327 1,745,353 Inc.*(1) ................... 170 3,092 Myriad Genetics, Inc.* ....... 200 5,220 Cardinal Health, Inc. ........ 11,000 354,640 OSI Pharmaceuticals, CIGNA Corp. .................. 1,480 52,200 Inc.*(1) ................... 200 6,206 Community Health United Therapeutics Systems, Inc.* ............. 320 11,392 Corp.* ..................... 90 4,739 Coventry Health Care, Vertex Pharmaceuticals, Inc.* ...................... 930 22,590 Inc.*(1) ................... 433 18,554 DaVita, Inc.* ................ 2,634 154,721 ------------ Emdeon, Inc. - Class A* ...... 200 3,050 2,986,254 Express Scripts, Inc.* ....... 1,020 88,179 ------------ Health Management HEALTH CARE EQUIPMENT & SUPPLIES -- 1.8% Associates, Inc. - Baxter International, Inc. ... 2,740 160,783 Class A* ................... 950 6,907 Beckman Coulter, Inc. ........ 240 15,706 The accompanying notes are an integral part of the financial statements. 61
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ HEALTH CARE PROVIDERS & SERVICES -- (CONTINUED) LIFE SCIENCES TOOLS & SERVICES -- (CONTINUED) Health Net, Inc.* ............ 450 $ 10,480 Techne Corp. ................. 71 $ 4,868 Henry Schein, Inc.*(1) ....... 310 16,306 Thermo Fisher Scientific, Humana, Inc.* ................ 860 37,745 Inc.* ...................... 11,470 547,004 Laboratory Corp. of Waters Corp.* ................ 310 19,208 America Holdings*(1) ....... 560 41,910 ------------ LifePoint Hospitals, 677,843 Inc.*(1) ................... 420 13,654 ------------ Lincare Holdings, Inc.* ...... 380 14,106 PHARMACEUTICALS -- 7.0% McKesson Corp. ............... 5,080 317,500 Abbott Laboratories .......... 53,129 2,868,435 Medco Health Solutions, Allergan, Inc. ............... 20,990 1,322,580 Inc.* ...................... 2,970 189,813 Bristol-Myers Squibb MEDNAX, Inc.* ................ 170 10,219 Co.(1) ..................... 19,710 497,677 Omnicare, Inc. ............... 809 19,562 Eli Lilly & Co. .............. 7,760 277,110 Patterson Cos., Inc.* ........ 420 11,752 Endo Pharmaceuticals Quest Diagnostics, Inc. ...... 770 46,493 Holdings, Inc.* ............ 510 10,460 Tenet Healthcare Corp.*(1) ... 1,200 6,468 Forest Laboratories, Inc.* ... 1,560 50,092 UnitedHealth Group, Inc. ..... 26,500 807,720 Johnson & Johnson ............ 25,760 1,659,202 Universal Health King Pharmaceuticals, Services, Inc. - Inc.* ...................... 1,330 16,319 Class B(1) ................. 280 8,540 Merck & Co., Inc. ............ 61,686 2,254,006 VCA Antech, Inc.*(1) ......... 370 9,220 Mylan Laboratories, WellPoint, Inc.* ............. 8,470 493,716 Inc.*(1) ................... 980 18,061 ------------ Perrigo Co. .................. 390 15,538 3,306,832 Pfizer, Inc. ................. 81,387 1,480,429 ------------ Valeant Pharmaceuticals HEALTH CARE TECHNOLOGY -- 0.0% International* ............. 230 7,312 Allscripts Healthcare Watson Pharmaceuticals, Solutions, Inc.*(1) ........ 300 6,069 Inc.* ...................... 510 20,201 Cerner Corp.*(1) ............. 210 17,312 ------------ IMS Health, Inc. ............. 1,160 24,430 10,497,422 ------------ ------------ 47,811 TOTAL HEALTH CARE .......................... 20,168,779 ------------ ------------ LIFE SCIENCES TOOLS & SERVICES -- 0.4% INDUSTRIALS -- 9.7% Bio-Rad Laboratories, AEROSPACE & DEFENSE -- 2.6% Inc. - Class A* ............ 30 2,894 Alliant Techsystems, Charles River Inc.*(1) ................... 170 15,006 Laboratories BE Aerospace, Inc.* .......... 200 4,700 International, Inc.* ....... 270 9,096 General Dynamics Corp. ....... 2,180 148,611 Covance, Inc.* ............... 190 10,368 Goodrich Corp. ............... 530 34,053 Illumina, Inc.*(1) ........... 300 9,195 Honeywell International, Life Technologies Inc. ....................... 4,630 181,496 Corp.*(1) .................. 531 27,734 ITT Corp. .................... 8,550 425,277 Mettler-Toledo L-3 Communications International, Inc.* ....... 110 11,549 Holdings, Inc. ............. 620 53,909 Millipore Corp.* ............. 170 12,300 Lockheed Martin Corp. ........ 6,260 471,691 PerkinElmer, Inc. ............ 510 10,501 Northrop Grumman Pharmaceutical Product Corp. ...................... 1,450 80,983 Development, Inc. .......... 560 13,126 Precision Castparts Corp. .... 500 55,175 Raytheon Co.(1) ............ 6,160 317,363 The accompanying notes are an integral part of the financial statements. 62
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ AEROSPACE & DEFENSE -- (CONTINUED) COMMERCIAL SERVICES & SUPPLIES -- (CONTINUED) Rockwell Collins, Inc. ....... 9,190 $ 508,758 Pitney Bowes, Inc.(1) ........ 1,380 $ 31,409 Spirit Aerosystems R.R. Donnelley & Sons Holdings, Inc. - Co. ........................ 13,570 302,204 Class A*(1) ................ 440 8,738 Republic Services, Inc. ...... 1,690 47,844 The Boeing Co. ............... 4,550 246,291 Stericycle, Inc.* ............ 202 11,144 TransDigm Group, Inc. ........ 90 4,274 The Brink's Co. .............. 200 4,868 United Technologies Waste Connections, Inc.* ..... 200 6,668 Corp ....................... 19,480 1,352,107 Waste Management, Inc. ....... 3,190 107,854 ------------ ------------ 3,908,432 585,808 ------------ ------------ AIR FREIGHT & LOGISTICS -- 0.6% CONSTRUCTION & ENGINEERING -- 0.7% C.H. Robinson Aecom Technology Worldwide, Inc. ............ 684 40,171 Corp.* ..................... 250 6,875 Expeditors International Fluor Corp. .................. 19,040 857,562 Washington, Inc. ............. 680 23,616 Foster Wheeler AG* ........... 110 3,238 FedEx Corp. .................. 1,280 106,816 Jacobs Engineering United Parcel Service, Group, Inc.*(1) ............ 450 16,924 Inc. - Class B ............. 14,250 817,523 KBR, Inc. .................... 570 10,830 UTi Worldwide, Inc. .......... 400 5,728 Quanta Services, Inc.* ....... 500 10,420 ------------ The Shaw Group, Inc.* ........ 5,090 146,337 993,854 URS Corp.* ................... 280 12,466 ------------ ------------ AIRLINES -- 0.0% 1,064,652 AMR Corp.*(1) ................ 790 6,107 ------------ Continental Airlines, ELECTRICAL EQUIPMENT -- 0.7% Inc. - Class B*(1) ......... 560 10,035 AMETEK, Inc. ................. 380 14,531 Copa Holdings SA ............. 70 3,813 Cooper Industries PLC ........ 810 34,539 Delta Airlines Co.* .......... 1,920 21,850 Emerson Electric Co. ......... 14,600 621,960 Southwest Airlines Co. ....... 2,380 27,203 First Solar, Inc.* ........... 180 24,372 ------------ General Cable Corp.*(1) ...... 3,060 90,025 69,008 Hubbell, Inc. - Class B ...... 290 13,717 ------------ Rockwell Automation, BUILDING PRODUCTS -- 0.0% Inc.(1) .................... 760 35,705 Armstrong World Roper Industries, Inc. ....... 360 18,853 Industries, Inc.*(1) ....... 40 1,557 Sunpower Corp. - Lennox International, Class A*(1) ................ 240 5,683 Inc.(1) .................... 340 13,274 Thomas & Betts Corp.* ........ 4,630 165,708 Masco Corp.(1) ............... 2,330 32,177 ------------ Owens Corning, Inc.*(1) ...... 390 10,000 1,025,093 ------------ ------------ 57,008 INDUSTRIAL CONGLOMERATES -- 2.1% ------------ 3M Co.(1) .................... 20,550 1,698,869 COMMERCIAL SERVICES & SUPPLIES -- 0.4% Carlisle Cos., Inc.(1) ....... 240 8,223 Avery Dennison Corp. ......... 560 20,434 General Electric Co. ......... 92,240 1,395,591 Cintas Corp. ................. 580 15,109 McDermott International, Copart, Inc.* ................ 190 6,959 Inc.* ...................... 930 22,329 Corrections Corp. of Textron, Inc. ................ 1,130 21,255 America*(1) ................ 300 7,365 Tyco International, Ltd.* .... 40 1,427 Covanta Holding Corp.* ....... 720 13,025 ------------ Iron Mountain, Inc.*(1) ...... 480 10,925 3,147,694 ------------ The accompanying notes are an integral part of the financial statements. 63
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ MACHINERY -- 1.2% PROFESSIONAL SERVICES -- 0.1% AGCO Corp.*(1) ............... 360 $ 11,642 Equifax, Inc. ................ 560 $ 17,298 Bucyrus International, FTI Consulting, Inc.*(1) ..... 170 8,017 Inc ........................ 260 14,656 IHS, Inc. - Class A* ......... 90 4,933 Caterpillar, Inc. ............ 3,500 199,465 Manpower, Inc. ............... 460 25,107 Crane Co.(1) ................. 350 10,717 Monster Worldwide, Cummins, Inc.(1) ............. 950 43,567 Inc.*(1) ................... 520 9,048 Danaher Corp. ................ 1,140 85,728 Robert Half International, Deere & Co. .................. 2,270 122,784 Inc.(1) .................... 660 17,642 Donaldson Co., Inc. .......... 230 9,784 The Corporate Executive Dover Corp. .................. 1,070 44,523 Board Co. .................. 100 2,282 Eaton Corp. .................. 1,070 68,074 The Dun & Bradstreet Flowserve Corp. .............. 2,140 202,294 Corp.(1) ................... 240 20,249 Gardner Denver, Inc. ......... 230 9,787 ------------ Graco, Inc. .................. 490 13,999 104,576 Harsco Corp. ................. 310 9,991 ------------ IDEX Corp. ................... 320 9,968 ROAD & RAIL -- 1.2% Illinois Tool Works, Inc.(1) . 2,820 135,332 Burlington Northern John Bean Technologies Santa Fe Corp. ............. 7,540 743,595 Corp ....................... 12 204 Con-way, Inc. ................ 240 8,378 Joy Global, Inc. ............. 500 25,795 CSX Corp. .................... 16,160 783,599 Kennametal, Inc. ............. 520 13,479 Hertz Global Holdings, Lincoln Electric Inc.*(1) ................... 650 7,748 Holdings, Inc. ............. 200 10,692 JB Hunt Transport Navistar International Services, Inc. ............. 330 10,649 Corp.* ..................... 330 12,755 Kansas City Southern Oshkosh Corp. ................ 5,810 215,144 Industries, Inc.* .......... 300 9,987 PACCAR, Inc.(1) .............. 1,730 62,747 Landstar System, Inc. ........ 290 11,243 Pall Corp. ................... 3,770 136,474 Norfolk Southern Corp. ....... 2,300 120,566 Parker Hannifin Corp. ........ 850 45,798 Ryder Systems, Inc. .......... 240 9,881 Pentair, Inc. ................ 420 13,566 Union Pacific Corp.(1) ....... 2,280 145,692 Snap-On, Inc. ................ 330 13,946 ------------ SPX Corp.(1) ................. 230 12,581 1,851,338 Terex Corp.* ................. 530 10,499 ------------ The Manitowoc Co., Inc. ...... 710 7,079 TRADING COMPANIES & DISTRIBUTORS -- 0.1% The Stanley Works(1) ......... 500 25,755 Fastenal Co.(1) .............. 530 22,069 The Toro Co. ................. 220 9,198 GATX Corp.(1) ................ 290 8,338 Timken Co. ................... 500 11,855 MSC Industrial Direct Trinity Industries, Inc.(1) .. 7,280 126,963 Co., Inc. - Class A ........ 240 11,280 Valmont Industries, Inc. ..... 60 4,707 W.W. Grainger, Inc. .......... 310 30,017 Wabtec Corp.(1) .............. 60 2,450 WESCO International, ------------ Inc.*(1) ................... 380 10,264 1,753,998 ------------ ------------ 81,968 MARINE -- 0.0% ------------ Alexander & Baldwin, TOTAL INDUSTRIALS .......................... 14,655,812 Inc ........................ 260 8,900 ------------ Kirby Corp.*(1) .............. 100 3,483 INFORMATION TECHNOLOGY -- 20.0% ------------ COMMUNICATIONS EQUIPMENT -- 4.1% 12,383 ADC Telecommunications, ------------ Inc.* ...................... 280 1,739 The accompanying notes are an integral part of the financial statements. 64
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ COMMUNICATIONS EQUIPMENT -- (CONTINUED) ELECTRONIC EQUIPMENT, INSTRUMENTS & Brocade Communications COMPONENTS -- (CONTINUED) Systems, Inc.* ............. 2,140 $ 16,328 Dolby Laboratories, Inc.* .... 1,850 $ 88,300 Ciena Corp.*(1) .............. 340 3,686 FLIR Systems, Inc.* .......... 540 17,669 Cisco Systems, Inc.* ......... 54,990 1,316,461 Ingram Micro, Inc. - CommScope, Inc.*(1) .......... 310 8,224 Class A* ................... 800 13,960 EchoStar Corp. - Itron, Inc.* ................. 170 11,487 Class A* ................... 270 5,438 Jabil Circuit, Inc. .......... 17,340 301,196 F5 Networks, Inc.*(1) ........ 210 11,126 Molex, Inc.(1) ............... 850 18,317 Harris Corp. ................. 6,670 317,159 National Instruments JDS Uniphase Corp.* .......... 300 2,475 Corp ....................... 220 6,479 Juniper Networks, Inc.*(1) ... 34,690 925,182 Tech Data Corp.* ............. 4,300 200,638 Motorola, Inc.* .............. 9,320 72,323 Trimble Navigation, QUALCOMM, Inc. ............... 46,690 2,159,879 Ltd.*(1) ................... 350 8,820 Research in Motion, Vishay Intertechnology, Ltd.*(1) ................... 18,900 1,276,506 Inc.* ........................ 570 4,760 Tellabs, Inc.* ............... 1,100 6,248 ------------ ------------ 1,328,105 6,122,774 ------------ ------------ INTERNET SOFTWARE & SERVICES -- 2.2% COMPUTERS & PERIPHERALS -- 6.6% Akamai Technologies, Apple, Inc.*(1) .............. 13,920 2,935,171 Inc.* ...................... 700 17,731 Dell, Inc.* .................. 23,450 336,742 AOL, Inc.*(1) ................ 631 14,690 Diebold, Inc. ................ 423 12,034 eBay, Inc.* .................. 4,910 115,581 EMC Corp.* ................... 21,940 383,292 Equinix, Inc.*(1) ............ 90 9,554 Hewlett-Packard Co. .......... 70,440 3,628,364 Google, Inc. - Class A* ...... 4,965 3,078,201 International Business IAC/InterActiveCorp.* ........ 630 12,902 Machines Corp. ............. 17,670 2,313,003 Sohu.com, Inc.* .............. 100 5,728 Lexmark International, VeriSign, Inc.*(1) ........... 850 20,604 Inc. - Class A*(1) ......... 530 13,769 WebMD Health Corp.* .......... 133 5,119 NCR Corp.* ................... 1,120 12,466 Yahoo!, Inc.* ................ 4,630 77,691 NetApp, Inc.* ................ 1,300 44,707 ------------ QLogic Corp.* ................ 590 11,133 3,357,801 SanDisk Corp.*(1) ............ 850 24,642 ------------ Seagate Technology(1) ........ 1,920 34,925 IT SERVICES -- 1.9% Teradata Corp.* .............. 520 16,344 Accenture PLC - Western Digital Corp.*(1) .... 6,030 266,225 Class A(1) ................. 20 830 ------------ Affiliated Computer 10,032,817 Services, Inc. - ------------ Class A* ................... 300 17,907 ELECTRONIC EQUIPMENT, INSTRUMENTS & Alliance Data Systems COMPONENTS -- 0.9% Corp.* ..................... 290 18,731 Agilent Technologies, Amdocs, Ltd.* ................ 770 21,968 Inc.* ...................... 1,410 43,809 Automatic Data Amphenol Corp. - Processing, Inc. ........... 2,980 127,604 Class A(1) ................. 4,700 217,046 Broadridge Financial Arrow Electronics, Inc.* ..... 540 15,989 Solutions, Inc. ............ 780 17,597 Avnet, Inc.* ................. 8,060 243,090 Cognizant Technology AVX Corp. .................... 200 2,534 Solutions Corp. - Corning, Inc. ................ 6,940 134,011 Class A* ................... 1,340 60,702 The accompanying notes are an integral part of the financial statements. 65
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ IT SERVICES -- (CONTINUED) SEMICONDUCTORS & SEMICONDUCTOR Computer Sciences EQUIPMENT -- (CONTINUED) Corp.* ..................... 820 $ 47,175 Intel Corp. .................. 50,620 $ 1,032,648 Convergys Corp.*(1) .......... 880 9,460 International Rectifier DST Systems, Inc.* ........... 220 9,581 Corp.* ..................... 410 9,069 Fidelity National Intersil Holding Corp. - Information Services, Class A(1) ................. 900 13,806 Inc. ....................... 10,487 245,815 KLA-Tencor Corp.(1) .......... 820 29,651 Fiserv, Inc.*(1) ............. 630 30,542 Lam Research Corp.* .......... 610 23,918 Genpact, Ltd.* ............... 400 5,960 Linear Technology Corp. ...... 1,220 37,259 Global Payments, Inc. ........ 220 11,849 LSI Logic Corp.* ............. 1,620 9,736 Hewitt Associates, Inc. - Marvell Technology Class A* ................... 380 16,059 Group, Ltd.* ............... 1,860 38,595 Lender Processing Maxim Integrated Services, Inc. ............. 320 13,011 Products, Inc.(1) .......... 1,840 37,352 Mastercard, Inc. - MEMC Electronic Class A(1) ................. 980 250,860 Materials, Inc.*(1) ........ 800 10,896 NeuStar, Inc. - Class A* ..... 300 6,912 Microchip Technology, Paychex, Inc.(1) ............. 1,870 57,297 Inc.(1) .................... 1,140 33,128 SAIC, Inc.*(1) ............... 500 9,470 Micron Technology, The Western Union Co. ........ 9,690 182,657 Inc.*(1) ................... 2,120 22,387 Total System Services, National Semiconductor Inc ........................ 820 14,161 Corp.(1) ................... 1,710 26,266 Visa, Inc. - Class A(1) ...... 19,630 1,716,840 Novellus Systems, Inc.*(1) ... 440 10,270 ------------ NVIDIA Corp.* ................ 1,830 34,184 2,892,988 ON Semiconductor ------------ Corp.* ..................... 1,570 13,832 OFFICE ELECTRONICS -- 0.2% PMC-Sierra, Inc.* ............ 550 4,763 Xerox Corp.(1) ............... 38,640 326,894 Rambus, Inc.*(1) ............. 200 4,880 Zebra Technologies Silicon Laboratories, Corp. - Class A* ........... 100 2,836 Inc.* ...................... 80 3,867 ------------ Teradyne, Inc.*(1) ........... 350 3,755 329,730 Texas Instruments, Inc.(1) ... 6,930 180,596 ------------ Varian Semiconductor SEMICONDUCTORS & SEMICONDUCTOR Equipment Associates, EQUIPMENT -- 1.3% Inc.* ...................... 140 5,023 Advanced Micro Xilinx, Inc.(1) .............. 1,300 32,578 Devices, Inc.*(1) .......... 1,400 13,552 ------------ Altera Corp. ................. 1,230 27,835 1,904,210 Analog Devices, Inc. ......... 1,420 44,844 ------------ Applied Materials, Inc. ...... 7,450 103,853 SOFTWARE -- 2.8% Atmel Corp.* ................. 1,220 5,624 Activision Blizzard, Inc.* ... 1,770 19,665 Broadcom Corp. - Adobe Systems, Inc.* ......... 2,230 82,019 Class A* ................... 1,980 62,271 ANSYS, Inc.*(1) .............. 280 12,169 Cree, Inc.* .................. 280 15,784 Autodesk, Inc.*(1) ........... 880 22,361 Cypress Semiconductor BMC Software, Inc.* .......... 650 26,065 Corp.*(1) .................. 230 2,429 CA, Inc. ..................... 1,930 43,348 Fairchild Semiconductor Cadence Design Systems, International, Inc.* ....... 510 5,095 Inc.*(1) ................... 1,110 6,649 Integrated Device Citrix Systems, Inc.* ........ 580 24,134 Technology, Inc.* .......... 690 4,464 The accompanying notes are an integral part of the financial statements. 66
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ SOFTWARE -- (CONTINUED) CHEMICALS -- (CONTINUED) Compuware Corp.* ............. 1,080 $ 7,808 PPG Industries, Inc. ......... 1,000 $ 58,540 Electronic Arts, Inc.* ....... 1,010 17,927 Praxair, Inc. ................ 5,860 470,616 FactSet Research Systems, RPM International, Inc. ...... 760 15,451 Inc ........................ 540 35,570 Sigma-Aldrich Corp.(1) ....... 440 22,233 Intuit, Inc.* ................ 1,190 36,545 Terra Industries, Inc. ....... 250 8,047 McAfee, Inc.* ................ 500 20,285 The Dow Chemical Co.(1) ...... 5,700 157,491 MICROS Systems, Inc.* ........ 320 9,930 The Lubrizol Corp. ........... 3,180 231,981 Microsoft Corp. .............. 59,200 1,805,008 The Mosaic Co. ............... 800 47,784 Novell, Inc.* ................ 700 2,905 The Scotts Miracle-Gro Nuance Communications, Co. - Class A .............. 170 6,683 Inc.*(1) ................... 550 8,547 The Valspar Corp. ............ 420 11,399 Oracle Corp. ................. 60,680 1,489,087 Valhi, Inc. .................. 530 7,404 Red Hat, Inc.*(1) ............ 8,180 252,762 ------------ Rovi Corp.*(1) ............... 300 9,561 2,876,849 Salesforce.com, Inc.* ........ 320 23,606 ------------ Sybase, Inc.*(1) ............. 360 15,624 CONSTRUCTION MATERIALS -- 0.0% Symantec Corp.*(1) ........... 13,070 233,822 Eagle Materials, Inc. ........ 160 4,168 Synopsys, Inc.*(1) ........... 550 12,254 Martin Marietta Materials VMware, Inc.* ................ 360 15,257 Corp.(1) ................... 190 16,988 ------------ Vulcan Materials Co. ......... 480 25,282 4,232,908 ------------ ------------ 46,438 TOTAL INFORMATION TECHNOLOGY ............... 30,201,333 ------------ ------------ CONTAINERS & PACKAGING -- 0.5% MATERIALS -- 3.3% AptarGroup, Inc.(1) .......... 180 6,433 CHEMICALS -- 1.9% Ball Corp.(1) ................ 450 23,265 Agrium, Inc. ................. 7,110 437,265 Bemis Co., Inc. .............. 5,940 176,121 Air Products & Crown Holdings, Inc.* ........ 8,340 213,337 Chemicals, Inc. ............ 970 78,628 Greif, Inc. - Class A ........ 270 14,575 Airgas, Inc. ................. 380 18,088 Owens-Illinois, Inc.* ........ 5,930 194,919 Albemarle Corp.(1) ........... 380 13,821 Packaging Corp. of Ashland, Inc. ................ 370 14,659 America .................... 450 10,355 Cabot Corp. .................. 360 9,443 Pactiv Corp.* ................ 480 11,587 Celanese Corp. - Sealed Air Corp. ............. 900 19,674 Series A ................... 6,420 206,082 Sonoco Products Co. .......... 610 17,843 CF Industries Holdings, Temple-Inland, Inc.(1) ....... 4,830 101,961 Inc ........................ 100 9,078 ------------ Cytec Industries, Inc. ....... 180 6,556 790,070 E.I. DuPont de Nemours ------------ & Co. ...................... 5,970 201,010 METALS & MINING -- 0.6% Eastman Chemical Co. ......... 430 25,903 AK Steel Holding Corp.(1) .... 470 10,035 Ecolab, Inc. ................. 1,030 45,917 Alcoa, Inc.(1) ............... 3,710 59,805 FMC Corp. .................... 280 15,613 Allegheny Technologies, Huntsman Corp. ............... 16,710 188,656 Inc.(1) .................... 490 21,937 International Flavors & Carpenter Technology Fragrances, Inc.(1) ........ 400 16,456 Corp.(1) ................... 620 16,709 Intrepid Potash, Inc.*(1) .... 100 2,917 Cliffs Natural Resources, Monsanto Co. ................. 6,480 529,740 Inc. ....................... 550 25,349 Nalco Holding Co. ............ 760 19,388 Commercial Metals Co. ........ 870 13,615 The accompanying notes are an integral part of the financial statements. 67
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ METALS & MINING -- (CONTINUED) WIRELESS TELECOMMUNICATION SERVICES -- (CONTINUED) Compass Minerals Crown Castle International International, Inc. ........ 200 $ 13,438 Corp.* ..................... 1,240 $ 48,410 Freeport-McMoRan Leap Wireless International, Copper & Gold, Inc.* ....... 1,530 122,844 Inc.*(1) ................... 490 8,599 Newmont Mining Corp. ......... 1,670 79,008 MetroPCS Communications, Nucor Corp. .................. 2,220 103,563 Inc.*(1) ................... 1,280 9,766 Reliance Steel & NII Holdings, Inc.* .......... 440 14,775 Aluminum Co. ............... 350 15,127 SBA Communications Royal Gold, Inc. ............. 100 4,710 Corp. - Class A* ........... 360 12,298 Schnitzer Steel Industries, Sprint Nextel Corp.*(1) ...... 19,750 72,285 Inc. - Class A(1) .......... 140 6,678 Telephone & Data Southern Copper Corp. ........ 1,440 47,390 Systems, Inc.(1) ........... 430 14,586 Steel Dynamics, Inc. ......... 1,130 20,024 U.S. Cellular Corp.* ......... 90 3,817 Titanium Metals Corp.*(1) .... 251 3,143 ------------ United States Steel 243,301 Corp.(1) ................... 820 45,198 ------------ Walter Industries, Inc.(1) ... 3,460 260,573 TOTAL TELECOMMUNICATION SERVICES............ 3,618,385 ------------ ------------ 869,146 UTILITIES -- 2.7% ------------ ELECTRIC UTILITIES -- 1.0% PAPER & FOREST PRODUCTS -- 0.3% Allegheny Energy, Inc. ....... 710 16,671 International Paper Co. ...... 12,700 340,106 American Electric Power MeadWestvaco Corp. ........... 950 27,198 Co., Inc. .................. 3,060 106,457 Weyerhaeuser Co.(1) .......... 570 24,590 DPL, Inc. .................... 660 18,216 ------------ Duke Energy Corp. ............ 8,990 154,718 391,894 Edison International ......... 1,690 58,778 ------------ Entergy Corp. ................ 1,130 92,479 TOTAL MATERIALS ............................ 4,974,397 Exelon Corp. ................. 7,610 371,901 ------------ FirstEnergy Corp.(1) ......... 1,870 86,862 TELECOMMUNICATION SERVICES -- 2 4% FPL Group, Inc. .............. 2,100 110,922 DIVERSIFIED TELECOMMUNICATION SERVICES -- 2.2% Great Plains Energy, Inc. .... 720 13,961 AT&T, Inc.(1) ................ 76,740 2,151,022 Hawaiian Electric CenturyTel, Inc.(1) .......... 1,470 53,229 Industries, Inc. ........... 750 15,675 Frontier Communications ITC Holdings Corp.(1) ........ 220 11,460 Corp ....................... 3,170 24,758 Northeast Utilities .......... 780 20,116 Level 3 Communications, NV Energy, Inc. .............. 1,380 17,084 Inc.* ...................... 4,020 6,150 Pepco Holdings, Inc. ......... 1,780 29,993 Qwest Communications Pinnacle West Capital International, Inc.(1) ..... 17,300 72,833 Corp. ...................... 710 25,972 TW Telecom, Inc.* ............ 500 8,570 PPL Corp. .................... 2,160 69,790 Verizon Communications, Progress Energy, Inc. ........ 2,030 83,250 Inc ........................ 30,690 1,016,760 Southern Co. ................. 5,010 166,933 Windstream Corp.(1) .......... 3,800 41,762 Westar Energy, Inc. .......... 560 12,163 ------------ ------------ 3,375,084 1,483,401 ------------ ------------ WIRELESS TELECOMMUNICATION SERVICES -- 0.2% American Tower Corp. - Class A* ................... 1,360 58,765 The accompanying notes are an integral part of the financial statements. 68
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ GAS UTILITIES -- 0.3% MULTI-UTILITIES -- (CONTINUED) AGL Resources, Inc. .......... 420 $ 15,317 OGE Energy Corp. ............. 620 $ 22,872 Atmos Energy Corp. ........... 410 12,054 PG&E Corp.(1) ................ 2,190 97,784 Energen Corp. ................ 3,530 165,204 Public Service Enterprise EQT Corp. .................... 450 19,764 Group, Inc. ................ 11,130 370,072 National Fuel Gas Co. ........ 310 15,500 SCANA Corp. .................. 730 27,506 ONEOK, Inc. .................. 610 27,188 Sempra Energy ................ 1,290 72,214 Questar Corp. ................ 690 28,683 TECO Energy, Inc. ............ 1,230 19,951 UGI Corp. .................... 6,690 161,831 Vectren Corp. ................ 480 11,846 -------------- Wisconsin Energy Corp. ....... 550 27,407 445,541 Xcel Energy, Inc.(1) ......... 2,860 60,689 -------------- ------------ INDEPENDENT POWER PRODUCERS & 1,421,603 ENERGY TRADERS -- 0.4% ------------ AES Corp.* ................... 2,610 34,739 WATER UTILITIES -- 0.0% Calpine Corp.* ............... 1,000 11,000 American Water Works Constellation Energy Co., Inc. .................. 550 12,326 Group, Inc. ................ 7,880 277,139 Aqua America, Inc.(1) ........ 300 5,253 Dynegy, Inc. - ------------ Class A*(1) ................ 4,730 8,561 17,579 Mirant Corp.* ................ 10,810 165,069 ------------ NRG Energy, Inc.* ............ 5,660 133,633 TOTAL UTILITIES ............................ 4,012,002 Ormat Technologies, ------------ Inc.(1) .................... 100 3,784 TOTAL COMMON STOCK RRI Energy, Inc.* ............ 1,740 9,953 (Cost $116,039,963) ..................... 146,193,328 -------------- ------------ 643,878 RIGHTS -- 0.0% -------------- Fresenius Kabi MULTI-UTILITIES -- 1.0% Pharmaceuticals Alliant Energy Corp. ......... 600 18,156 Holding, Inc.* (Cost $0) ... 132 39 Ameren Corp. ................. 1,570 43,882 ------------ CenterPoint Energy, Inc. ..... 17,500 253,925 EXCHANGE-TRADED FUNDS -- 2.3% CMS Energy Corp.(1) .......... 1,410 22,081 iShares Russell 1000 Consolidated Edison, Index Fund ................. 3,300 202,323 Inc.(1) .................... 1,870 84,954 iShares S&P 100 Dominion Resources, Index Fund ................. 63,000 3,241,350 Inc ........................ 3,710 144,393 ------------ DTE Energy Co.(1) ............ 1,080 47,077 TOTAL EXCHANGE-TRADED FUNDS Integrys Energy Group, (Cost $3,254,809) ........................ 3,443,673 Inc ........................ 520 21,835 ------------ MDU Resources Group, Inc ........................ 880 20,768 NiSource, Inc. ............... 2,040 31,375 NSTAR ........................ 620 22,816 The accompanying notes are an integral part of the financial statements. 69
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER LARGE-CAP FUND - ---------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) (NOTE 2) ----------- -------------- ------------ SHORT TERM INVESTMENTS -- 0.7% TOTAL SHORT-TERM BlackRock Liquidity Funds INVESTMENTS HELD TempFund Portfolio - AS COLLATERAL FOR Institutional Series LOANED SECURITIES (Cost $1,111,306) .......... 1,111,306 $ 1,111,306 (Cost $25,107,922)(3) ................... $ 25,107,922 -------------- ------------ SHORT-TERM INVESTMENTS HELD TOTAL INVESTMENTS -- 116.7% AS COLLATERAL FOR LOANED (Cost $145,514,000)+,(2) ................ 175,856,268 SECURITIES -- 16.7% LIABILITIES IN EXCESS OF BlackRock Liquidity Funds OTHER ASSETS -- (16.7)% .................. (25,198,693) TempFund ------------ Portfolio .................. 13,379,396 13,379,396 NET ASSETS -- 100.0% ....................... $150,657,575 Institutional Money ============ Market Trust ............... 11,728,526 11,728,526 -------------- - ----------- * Non-income producing security. + The cost for Federal income tax purposes is $149,171,284. At December 31, 2009, net unrealized appreciation was $26,684,984. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $27,719,592 and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $1,034,608. (1) Security partially or fully on loan. (2) At December 31, 2009, the market value of securities on loan for the Multi-Manager Large-Cap Fund was $24,023,809. (3) See Note 6 in the Notes to Financial Statements. The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 - LEVEL 3 - TOTAL LEVEL 1 - SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 PRICES INPUTS INPUTS ----------------- ------------ ----------- ------------ INVESTMENTS IN SECURITIES: Common Stocks $146,193,328 $146,193,328 $ -- $ -- Exchange-Traded Funds 3,443,673 3,443,673 -- -- Rights 39 39 -- -- Short-Term Investments 26,219,228 26,219,228 -- -- ------------ ------------ ---- ---- Total $175,856,268 $175,856,268 $ -- $ -- ============ ============ ==== ==== The accompanying notes are an integral part of the financial statements. 70
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - ---------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ COMMON STOCK -- 82.5% AUSTRALIA -- (CONTINUED) ARGENTINA -- 0.2% Commonwealth Bank of Banco Macro SA - Australia .................. 16,588 $ 809,856 ADR ........................ 5,300 $ 157,728 Computershare, Ltd. .......... 4,043 41,366 BBVA Banco Frances Crown, Ltd. .................. 10,428 74,615 SA - ADR ................... 5,120 32,205 CSG, Ltd. .................... 14,390 27,081 Cresud SA - ADR(1) ........... 14,426 207,446 CSL, Ltd. .................... 1,642 47,748 Grupo Financiero CSR, Ltd. .................... 2,856 4,599 Galicia SA - ADR* .......... 8,000 46,080 Data#3, Ltd. ................. 1,481 11,375 IRSA Inversiones y Dexus Property Group ......... 42,106 31,945 Representaciones SA - Downer EDI, Ltd. ............. 5,013 41,749 GDR ........................ 3,700 35,150 Energy Resources of MercadoLibre, Inc.* .......... 3,800 197,106 Australia, Ltd. ............ 1,539 32,843 Petrobras Energia SA - Fairfax Media, Ltd. .......... 93,073 144,664 ADR ........................ 5,618 87,809 Fortescue Metals Group, Telecom Argentina SA - Ltd.* ...................... 7,230 28,598 ADR* ....................... 10,150 170,723 Foster's Group, Ltd. ......... 10,490 51,602 Transportadora de Gas General Property Trust ....... 72,743 39,089 del Sur SA - ADR ........... 16,900 49,348 Goodman Group ................ 44,527 25,191 -------------- Incitec Pivot, Ltd. .......... 44,940 142,150 TOTAL ARGENTINA ........................... 983,595 Insurance Australia -------------- Group, Ltd. ................ 72,077 258,877 AUSTRALIA -- 3.6% Leighton Holdings, Ltd. ...... 1,485 50,339 Aditya Birla Minerals, Lend Lease Corp., Ltd. ....... 11,256 103,905 Ltd.* ...................... 44,123 48,335 Macmahon Holdings, AGL Energy, Ltd. ............. 10,531 132,366 Ltd ........................ 31,199 17,110 Alumina, Ltd.* ............... 57,755 94,418 Macquarie Airports ........... 45,285 122,571 Alumina, Ltd. - ADR* ......... 4,000 26,200 Macquarie Group, Ltd. ........ 12,138 520,066 AMP, Ltd. .................... 18,293 110,496 Macquarie Infrastructure Asciano Group* ............... 17,542 28,399 Group ...................... 104,209 124,116 ASX Ltd. ..................... 6,909 215,399 Mirvac Group ................. 21,924 30,589 Australia & New Zealand National Australia Bank, Banking Group, Ltd. ........ 45,151 920,105 Ltd ........................ 22,597 551,458 Australian Pharmaceutical Newcrest Mining, Ltd. ........ 3,562 112,825 Industries, Ltd. ........... 49,772 30,835 Octaviar, Ltd.* .............. 28,635 -- AXA Asia Pacific OneSteel, Ltd. ............... 40,528 121,729 Holdings, Ltd. ............. 9,173 53,634 Orica, Ltd. .................. 1,744 40,548 Bank of Queensland, Ltd. ..... 5,738 59,072 Origin Energy, Ltd. .......... 15,857 238,572 Bendigo and Adelaide OZ Minerals Ltd.* ............ 60,759 64,762 Bank, Ltd. ................. 23,623 207,361 Pan Pacific Petroleum BHP Billiton, Ltd. ........... 92,221 3,528,986 NL* ........................ 77,799 27,664 BlueScope Steel, Ltd. ........ 73,740 203,181 Qantas Airways, Ltd. ......... 40,736 108,688 Boral, Ltd. .................. 15,129 80,302 QBE Insurance Group, Brambles Ltd. ................ 11,550 70,050 Ltd ........................ 19,229 438,811 Brickworks, Ltd. ............. 4,993 55,843 Rio Tinto, Ltd. .............. 16,822 1,122,946 Caltex Australia, Ltd.* ...... 16,283 135,449 Santos, Ltd. ................. 55,153 694,628 CFS Retail Property Sigma Pharmaceuticals, Trust ...................... 21,778 37,083 Ltd ........................ 263,005 233,233 Coca-Cola Amatil, Ltd. ....... 1,213 12,507 Cochlear, Ltd. ............... 614 37,917 The accompanying notes are an integral part of the financial statements. 71
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ AUSTRALIA -- (CONTINUED) BELGIUM -- (CONTINUED) Sims Metal Management, Compagnie Immobiliere Ltd ........................ 5,364 $ 105,100 de Belgique SA* ............ 379 $ 13,395 Sonic Healthcare, Ltd. ....... 9,376 129,131 Delhaize Group ............... 588 44,982 Stockland Corp., Ltd. ........ 24,171 85,159 Delhaize Group - ADR ......... 2,400 184,128 Suncorp-Metway, Ltd. ......... 90,213 698,420 Dexia* ....................... 1,519 9,562 Tabcorp Holdings, Ltd. ....... 7,404 45,937 Fortis* ...................... 30,070 111,309 Tatts Group, Ltd. ............ 6,772 14,774 Groupe Bruxelles Telstra Corp., Ltd. .......... 35,877 110,299 Lambert SA ................. 383 36,165 Thorn Group, Ltd. ............ 17,840 18,834 Intervest Offices ............ 249 7,838 Toll Holdings, Ltd. .......... 31,268 244,171 KBC Groupe* .................. 3,493 150,077 UXC, Ltd. .................... 88,256 61,997 Nationale A Portefeuille ..... 305 16,230 Washington H Soul Punch International NV* ...... 266 1,087 Pattinson And Co., Ltd. .... 5,543 67,535 Recticel SA .................. 665 4,760 Wesfarmers, Ltd. ............. 40,009 1,118,444 Retail Estates ............... 249 15,005 Wesfarmers, Ltd. - PPS ....... 1,611 44,982 Solvay SA .................... 4,712 507,460 Westfield Group .............. 19,382 216,921 UCB SA ....................... 3,912 163,285 Westpac BankingCorp., Umicore ...................... 4,251 141,808 Ltd ........................ 21,001 474,385 Zetes Industries SA .......... 488 11,415 Woodside Petroleum, ------------ Ltd ........................ 5,397 227,602 TOTAL BELGIUM .............................. 1,762,940 Woolworths, Ltd. ............. 16,794 421,206 ------------ WorleyParsons, Ltd. .......... 7,845 203,699 BERMUDA -- 0.0% -------------- Credicorp, Ltd. .............. 1,300 100,126 TOTAL AUSTRALIA ............................ 16,914,442 Seadrill, Ltd. ............... 967 24,603 -------------- ------------ AUSTRIA -- 0.3% TOTAL BERMUDA .............................. 124,729 Andritz AG ................... 43 2,479 ------------ Erste Bank der BOTSWANA -- 0.1% oesterreichischen Barclays Bank of Sparkassen AG .............. 8,707 323,543 Botswana, Ltd.(1) .......... 134,600 134,255 Oesterreichische Botswana Insurance Elektrizitaetswirtschafts Holdings, Ltd.(1) .......... 60,900 100,030 AG - Class A ............... 543 23,024 First National Bank of OMV AG ....................... 19,539 857,296 Botswana(1) ................ 274,700 102,705 Raiffeisen International Letshego Holdings, Bank-Holding AG ............ 281 15,698 Ltd.(1) .................... 19,400 44,782 Strabag SE ................... 781 23,005 Sechaba Breweries, Telekom Austria AG ........... 2,904 41,454 Ltd.(1) .................... 109,703 211,593 Voestalpine AG ............... 3,411 124,616 Standard Chartered Bank -------------- of Botswana, Ltd. .......... 41,700 100,147 TOTAL AUSTRIA .............................. 1,411,115 ------------ -------------- TOTAL BOTSWANA ............................. 693,512 BELGIUM -- 0.4% ------------ Agfa Gevaert NV* ............. 17,702 114,109 BRAZIL -- 1.8% Anheuser-Busch InBev All America Latina NV ......................... 1,566 81,067 Logistica SA ............... 5,494 51,437 Barco NV* .................... 1,959 79,665 B2W Companhia Global Belgacom SA .................. 1,917 69,593 do Varejo .................. 1,500 41,183 Banco do Brazil SA ........... 28,139 480,028 The accompanying notes are an integral part of the financial statements. 72
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ BRAZIL -- (CONTINUED) BRAZIL -- (CONTINUED) Banco Santander Brasil SA .... 1,791 $ 24,586 Natura Cosmeticos SA ......... 4,800 $ 100,108 BM&F BOVESPA SA .............. 18,707 131,626 Petroleo Brasileiro SA - Brasil Telecom SA* ........... 1,462 23,101 ADR ........................ 49,915 2,379,947 BRF Brasil Food SA ........... 6,208 161,779 Redecard SA .................. 6,500 108,271 Centrais Eletricas Rossi Residencial SA ......... 38,383 337,312 Brasileiras SA - Souza Cruz SA ................ 1,100 36,494 ELETROBRAS ................. 4,659 97,248 Tele Norte Leste Cia Brasileira de Participacoes SA ........... 4,100 105,267 Distribuicao Grupo Telecomunicacoes de Sao Pao de Acucar - ADR .......... 3,145 236,252 Paulo SA ................... 1,000 21,804 Cia Brasileira Pfd Tim Participacoes SA* ........ 5,300 21,766 Receipt .................... 133 4,904 Totvs SA ..................... 3,300 223,665 Cia de Bebidas das Tractebel Energia SA ......... 2,700 33,389 Americas ................... 1,203 101,920 Usinas Siderurgicas de Cia de Concessoes Minas Gerais SA ............ 1,125 32,367 Rodoviarias ................ 2,100 48,115 Vale SA - ADR ................ 10,238 297,209 Cia Energetica de Minas Vivo Participacoes SA - Gerais ..................... 1,785 25,017 ADR ........................ 10,413 322,803 Cia Siderurgica Nacional SA .. 16,053 513,905 Weg SA ....................... 8,800 93,004 Companhia de Bebidas ------------ das Americas - ADR ......... 4,973 502,721 TOTAL BRAZIL .................. 8,360,902 Cosan SA Industria e ------------ Comercio* .................. 4,200 61,758 BULGARIA -- 0.1% CPFL Energia SA .............. 1,500 30,422 Bulgarian American Cyrela Brazil Realty SA ...... 26,529 373,326 Credit Bank JSCO*(1) ....... 2,600 32,358 Duratex SA ................... 26,600 247,513 Central Cooperative EDP Energias do Brasil SA .... 1,500 28,906 Bank AD* ................... 20,482 19,283 Empresa Brasileira de Chimimport AD* ............... 10,600 20,770 Aeronautica SA ............. 15,200 83,028 Doverie Holding AD*(1) ....... 11,040 29,892 Fibria Celulose SA* .......... 15,342 349,603 Olovno Tzinkov Gafisa SA .................... 3,400 55,150 Komplex AD*(1) ............. 900 9,500 Global Village Telecom Petrol AD*(1) ................ 37,250 191,441 Holding SA* ................ 2,500 80,399 Sopharma AD* ................. 14,000 40,541 JBS SA ....................... 1,292 6,906 ------------ LLX Logistica SA* ............ 2,000 11,614 TOTAL BULGARIA ................ 343,785 Localiza Rent A Car SA ....... 2,700 29,962 ------------ Lojas Renner SA .............. 12,900 291,195 CANADA -- 2.7% Lupatech SA* ................. 1,200 18,713 Agnico-Eagle Mines, Marfrig Frigorificose e Ltd ........................ 319 17,361 Comercio de Alimentos Agrium, Inc. ................. 2,002 124,282 SA ......................... 6,150 67,540 Alimentation Couche MMX Mineracao E Tard, Inc. - Series B ...... 3,400 67,685 Metalicos SA* .............. 2,000 14,187 Ballard Power Systems, MRV Engenharia e Inc.* ...................... 5,900 11,226 Participacoes SA ........... 6,600 53,452 Bank of Montreal ............. 13,830 737,308 Bank of Nova Scotia .......... 11,090 519,338 Barrick Gold Corp. ........... 3,072 121,781 BCE, Inc. .................... 8,888 246,015 Biovail Corp. ................ 1,061 14,812 The accompanying notes are an integral part of the financial statements. 73
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- -------------- ----------- ------------ CANADA -- (CONTINUED) CANADA -- (CONTINUED) Bombardier, Inc. - Intact Financial Corp. ....... 2,369 $ 84,150 Class B .................... 20,674 $ 94,885 Ivanhoe Mines, Ltd.* ......... 1,952 28,948 Brookfield Asset Kinross Gold Corp. ........... 1,932 35,782 Management, Inc. - Loblaw Cos., Ltd. ............ 2,900 93,945 Class A .................... 2,009 44,560 Lundin Mining Corp.* ......... 7,500 30,836 Brookfield Properties Magna International, Corp ....................... 2,956 35,827 Inc. - Class A ............. 2,300 116,886 CAE, Inc. .................... 2,102 17,299 Manulife Financial Corp. ..... 57,019 1,052,565 Calian Technologies, Ltd. .... 1,000 16,589 Metro, Inc. - Class A ........ 900 33,751 Cameco Corp. ................. 581 18,691 National Bank of Canada ...... 2,314 133,284 Canadian Imperial Nexen, Inc. .................. 1,385 33,398 Bank of Commerce ........... 5,287 342,345 Niko Resources, Ltd. ......... 400 37,634 Canadian National Onex Corp. ................... 2,822 63,679 Railway Co. ................ 733 39,846 Penn West Energy Trust ....... 4,561 80,274 Canadian Natural Potash Corp. of Resources, Ltd. ............ 618 44,465 Saskatchewan, Inc. ......... 1,440 157,500 Canadian Oil Sands Trust ..... 685 19,590 Power Corp. of Canada ........ 1,900 53,066 Canadian Pacific Power Financial Corp. ........ 1,400 41,604 Railway, Ltd. .............. 6,317 342,745 Provident Energy Trust ....... 5,826 39,151 Canadian Tire Corp., Ltd. .... Research in Motion, Class A .................... 2,300 126,452 Ltd.* ...................... 892 60,246 Canadian Utilities, Ltd. - Rona, Inc.* .................. 3,800 56,136 Class A .................... 900 37,649 Royal Bank of Canada ......... 14,647 785,647 Cenovus Energy, Inc. ......... 1,852 46,926 Saputo, Inc. ................. 1,400 41,163 CGI Group, Inc. - Silver Wheaton Corp.* ........ 4,402 66,315 Class A* ................... 33,300 453,231 Sino-Forest Corp.* ........... 7,319 135,624 CI Financial Corp. ........... 1,700 35,760 Sun Life Financial, Inc. ..... 17,876 516,065 Crescent Point Energy Suncor Energy, Inc. .......... 6,508 231,434 Corp ....................... 1,000 37,590 Talisman Energy, Inc. ........ 25,870 486,520 Empire Co., Ltd. - Teck Resources, Ltd. - Class A .................... 1,400 63,852 Class B* ................... 15,314 538,482 Enbridge, Inc. ............... 1,312 60,641 TELUS Corp. .................. 1,100 34,265 EnCana Corp. ................. 1,852 60,402 The Data Group Income Enerplus Resources Fund ...... 610 14,006 Fund ....................... 2,300 13,019 Fairfax Financial The Toronto-Dominion Holdings, Ltd. ............. 785 307,358 Bank ....................... 18,409 1,161,025 Finning International, Thomson Reuters Corp. ........ 10,275 333,543 Inc ........................ 535 8,533 TMX Group, Inc. .............. 1,000 31,678 George Weston, Ltd. .......... 1,614 103,274 Toronto-Dominion Bank ........ 7,213 452,399 Goldcorp, Inc. ............... 5,438 215,003 TransAlta Corp. .............. 784 17,460 Great-West Lifeco, Inc. ...... 1,600 41,123 TransCanada Corp. ............ 23,085 797,322 Groupe Aeroplan, Inc. ........ 3,454 35,965 TVA Group, Inc. - IAMGOLD Corp. ................ 1,879 29,388 B Shares ................... 1,100 14,041 IGM Financial, Inc. .......... 1,129 45,782 Viterra, Inc.* ............... 4,304 40,068 Industrial Alliance Yamana Gold, Inc. ............ 20,300 232,554 Insurance and Financial Services, Inc. ............. 1,124 34,606 The accompanying notes are an integral part of the financial statements. 74
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ CANADA -- (CONTINUED) CHILE -- (CONTINUED) Yellow Pages Income Fund ... 4,902 $ 25,217 Parque Arauco SA ........... 95,300 $ 108,925 ------------ Quinenco SA ................ 15,702 33,264 TOTAL CANADA ............................ 12,820,867 Ripley Corp. SA ............ 46,300 38,951 ------------ S.A.C.I. Falabella ......... 53,188 313,919 CAYMAN ISLANDS -- 0.0% Sigdo Koppers SA ........... 60,400 55,228 Tingyi Cayman Islands Sociedad de Inversiones Holding Corp. ............ 30,000 74,235 Pampa Calichera SA - ------------ Class A .................. 60,000 104,050 TOTAL CAYMAN ISLANDS .................... 74,235 Sociedad Matriz Banco de ------------ Chile - Class B .......... 516,983 68,248 CHILE -- 0.8% Sonda SA ................. 22,877 35,615 Administradora de Vina Concha y Toro SA - Fondos de Pensiones ADR ...................... 1,100 45,771 Provida SA ............... 31,000 93,345 ------------ AES Gener SA ............... 130,000 58,666 TOTAL CHILE .............................. 3,600,742 Almendral SA ............... 371,854 38,471 ------------ Antarchile SA .............. 6,794 124,513 CHINA -- 2.2% Banco de Chile ............. 1,606,165 143,920 Air China, Ltd. - Banco de Credito e Class H* ................. 264,000 204,663 Inversiones .............. 2,387 79,727 Alibaba.com, Ltd. .......... 19,000 43,803 Banco Santander Chile ...... 876,218 52,924 Angang Steel Co., Ltd. - Banco Santander Chile - Class H .................. 114,000 248,590 ADR ...................... 1,360 88,101 Anhui Conch Cement CAP SA ..................... 3,900 114,898 Co., Ltd. - Class H ...... 6,804 43,477 Centros Comerciales Baidu, Inc.- ADR* .......... 300 123,369 Sudamericanos SA ......... 49,700 168,164 Bank of China, Ltd. - Cia Cervecerias Unidas Class H .................. 1,725,338 927,184 SA - ADR ................. 1,000 39,020 Bank of Communications Cia General de Co., Ltd. - Class H ...... 313,000 359,993 Electricidad ............. 17,400 117,612 China Citic Bank - Cia Sudamericana de Class H .................. 188,000 159,136 Vapores SA* .............. 80,899 59,066 China Coal Energy Co. - Colbun SA .................. 349,247 89,127 Class H .................. 90,300 163,856 Empresa Nacional de China Communications Electricidad SA .......... 101,276 225,070 Construction Co., Empresa Nacional de Ltd. - Class H ........... 67,000 63,661 Telecomunicaciones SA .... 3,369 48,784 China Construction Bank Empresas CMPC SA ........... 5,225 207,991 Corp. - Class H .......... 1,689,280 1,442,895 Empresas Copec SA .......... 21,946 328,249 China Dongxiang Group Enersis SA ................. 294,355 134,286 Co. ...................... 29,000 22,376 Enersis SA - ADR ........... 10,597 242,247 China Eastern Airlines Enersur SA ................. 12,100 50,762 Corp, Ltd. - Class H* .... 74,000 26,269 Grupo Security SA .......... 131,265 38,051 China Huiyuan Juice La Polar SA ................ 13,300 75,821 Group, Ltd. - Class H .... 29,000 20,564 Lan Airlines SA ............ 8,726 148,915 China International Madeco SA - ADR ............ 1,718 10,566 Marine Containers Masisa SA .................. 125,000 18,475 Co., Ltd. - Class B ...... 39,000 48,900 The accompanying notes are an integral part of the financial statements. 75
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ CHINA -- (CONTINUED) CHINA -- (CONTINUED) China Medical Technologies, Industrial & Commerical Bank Inc. - ADR ............... 1,000 $ 14,050 of China - Class H ....... 1,836,660 $ 1,512,610 China Merchants Bank Co., Inner Mongolia Yitai Coal Ltd. - Class H ........... 29,250 76,106 Co. - Class B ............ 7,000 60,543 China Molybdenum Co., Ltd. . 162,000 129,059 KWG Property Holding, China National Building Ltd. ..................... 279,500 213,235 Material Co., Ltd. ....... 12,000 24,655 Maanshan Iron & Steel - China Oilfield Services, Class H* ................. 46,000 33,327 Ltd. - Class H ........... 30,000 35,582 Mindray Medical China Pacific Insurance International Ltd. - Group Co., Ltd.* ......... 5,600 22,318 ADR ...................... 261 8,853 China Railway Construction Netease.com - ADR* ......... 2,000 75,220 Corp., Ltd. - Class H .... 26,900 34,278 Parkson Retail Group, China Railway Group, Ltd. - Ltd. ..................... 44,500 78,307 Class H* ................. 44,000 33,984 Perfect World Co., Ltd. - China Shenhua Energy Co., ADR* ..................... 4,513 177,993 Ltd. - Class H ........... 144,500 701,449 PICC Property & Casualty China Shipping Development Co., Ltd. - Class H* ..... 54,000 48,322 Co., Ltd. - Class H ...... 26,000 38,668 Ping An Insurance Group Co. China Sky Chemical Fibre of China, Ltd. - Co., Ltd.* ............... 112,000 14,932 Class H .................. 17,536 152,479 China Southern Airlines Co., Semiconductor Manufacturing Ltd. - Class H* .......... 81,000 25,059 International Corp.* ..... 386,000 24,827 China Telecom Corp., Ltd. - Shandong Weigao Group Class H .................. 333,104 137,744 Medical Polymer Co., Ltd. China Yurun Food Group, - Class H ................ 30,000 99,982 Ltd. ..................... 38,000 112,725 Shanghai Electric Group Co., Ctrip.com International, Ltd. - Class H ........... 90,000 41,382 Ltd. - ADR* .............. 1,400 100,604 Shanghai Lujiazui Finance & Datang International Power Trade Zone Development Generation Co., Ltd. - Co., Ltd. - Class B ...... 24,600 47,453 Class H .................. 48,000 20,519 Shanghai Zhenhua Heavy Dazhong Transportation Group Industry Co., Ltd. - Co., Ltd. - Class B ...... 75,600 61,765 Class B .................. 62,400 52,623 Dongfang Electric Corp., Shimao Property Holdings, Ltd. ..................... 2,400 12,797 Ltd. ..................... 116,500 218,423 Focus Media Holding, Ltd. - Sina Corp./China* .......... 1,000 45,180 ADR* ..................... 3,300 52,305 Sino-Ocean Land Holdings, Golden Eagle Retail Group, Ltd. ..................... 55,500 50,959 Ltd. ..................... 47,000 95,335 Sinopec Shanghai Harbin Power Equipment Co., Petrochemical Co., Ltd. - Ltd. - Class H ........... 24,000 21,235 Class H* ................. 54,000 21,210 Sinopharm Group Co.* ....... 4,800 17,056 The accompanying notes are an integral part of the financial statements. 76
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ CHINA -- (CONTINUED) CROATIA -- (CONTINUED) Suntech Power Holdings Co., Ericsson Nikola Tesla ...... 200 $ 52,010 Ltd. - ADR* .............. 1,900 $ 31,597 Hrvatske Telekomunikacije Tencent Holdings, Ltd. ..... 8,600 185,999 DD ....................... 2,950 158,334 Tsingtao Brewery Co., Institut IGH ............... 20 10,004 Ltd. ..................... 6,000 33,189 Koncar-Elektroindustrija Want Want China Holdings, DD* ...................... 920 76,324 Ltd. ..................... 216,709 151,336 Podravka DD* ............... 1,000 57,966 Weichai Power Co., Ltd. .... 20,000 160,404 Privredna Banka Zagreb Yangzijiang Shipbuilding DD*(1) ................... 830 90,851 Holdings, Ltd. ........... 82,000 70,038 Tankerska Plovidba DD ...... 40 11,562 Yantai Changyu Pioneer Wine VIRO Tvornica Secera* ...... 370 25,731 Co. - Class B ............ 7,000 62,025 ------------ Yanzhou Coal Mining Co., TOTAL CROATIA ............................ 635,083 Ltd. - Class H ........... 175,999 384,933 ------------ Zhejiang Expressway Co., CYPRUS -- 0.0% Ltd. - Class H ........... 182,000 167,698 Bank of Cyprus, Public Co., Zijin Mining Group Co., Ltd. Ltd. ..................... 2,276 15,936 - Class H ................ 206,000 195,264 ------------ ZTE Corp. - Class H ........ 2,600 15,985 TOTAL CYPRUS ............................. 15,936 ------------ ------------ TOTAL CHINA .............................. 10,102,357 CZECH REPUBLIC -- 0.4% ------------ CEZ AS ..................... 12,500 586,916 COLOMBIA -- 0.2% Komercni Banka AS .......... 4,112 881,111 Almacenes Exito SA ......... 6,954 66,229 Pegas Nonwovens SA ......... 4,000 97,283 Banco de Bogota SA ......... 3,110 51,340 Philip Morris CR AS ........ 170 81,862 BanColumbia SA - ADR ....... 2,800 127,428 Telefonica 02 Czech Republic Cementos Argos SA .......... 7,800 41,143 AS ....................... 6,222 141,962 Ecopetrol SA ............... 79,500 96,487 Unipetrol AS* .............. 12,200 92,727 Empresa de ------------ Telecomunicaciones de TOTAL CZECH REPUBLIC ..................... 1,881,861 Bogota ................... 116,000 65,436 ------------ Grupo Aval Acciones Y DENMARK -- 0.5% Valores .................. 158,000 59,419 A P Moller - Maersk A/S - Grupo de Inversiones Class B .................. 59 414,528 Suramericana SA .......... 3,800 45,544 A P Moller - Maersk A/S - Grupo Nacional de Chocolates Class A .................. 16 108,079 SA ....................... 9,000 92,308 Carlsberg A/S - Class B .... 3,775 277,895 Interconexion Electrica Danisco A/S ................ 1,270 84,734 SA ....................... 14,278 90,514 Danske Bank A/S* ........... 43,912 985,798 Inversiones Argos SA ....... 9,000 83,516 DSV A/S* ................... 3,397 61,563 Proenergia Internacional ... 2,000 -- FLSmith & Co. A/S .......... 225 15,763 Promigas SA(1) ............. 2,000 35,165 Novo Nordisk A/S - ------------ Class B .................. 1,874 119,639 TOTAL COLOMBIA ........................... 854,529 PER Aarsleff A/S - ------------ Class B .................. 200 22,338 CROATIA -- 0.1% Sydbank A/S* ............... 1,644 41,867 Atlantska Plovidba DD ...... 712 131,037 Vestas Wind Systems Dalekovod DD* .............. 340 21,264 A/S* ..................... 463 28,189 ------------ TOTAL DENMARK ............................ 2,160,393 ------------ The accompanying notes are an integral part of the financial statements. 77
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ EGYPT -- 0.3% ESTONIA -- (CONTINUED) Alexandria Mineral AS Tallinna Vesi(1) ......... 5,400 $ 77,167 Oils Co. .................. 4,000 $ 27,510 Olympic Entertainment Arab Cotton Ginning* ........ 32,000 23,761 Group AS* ................. 70,130 77,492 Commercial International Tallink Group, Ltd.* ........ 482,120 255,099 Bank ...................... 18,150 180,365 Tallinna Kaubamaja Eastern Tobacco Co. ......... 2,600 53,899 AS(1) ..................... 24,000 123,581 Egypt Kuwait Holding ------------ Co. ....................... 30,249 59,372 TOTAL ESTONIA ............................. 704,885 Egyptian Co. for Mobile ------------ Services .................. 1,400 61,298 FINLAND -- 0.4% Egyptian for Tourism Digia PLC ................... 2,500 12,282 Resorts* .................. 60,000 17,990 Elisa Oyj ................... 1,789 40,833 Egyptian International Fortum Oyj .................. 3,996 108,409 Pharmaceutical Kesko Oyj - Class B ......... 4,608 152,169 Industrial Co. ............ 7,900 48,784 Metso Oyj ................... 4,930 173,414 El Ezz Aldekhela Steel - Neste Oil Oyj ............... 6,272 111,454 Alexandria ................ 350 47,989 Nokia Oyj ................... 36,128 467,134 El Sewedy Cables Outokumpu Oyj ............... 4,409 83,463 Holding Co. ............... 3,630 44,705 Sampo Oyj - Class A ......... 2,304 56,125 El Watany Bank of Stora Enso Oyj - Egypt(1) .................. 5,466 39,923 Class R* .................. 66,892 469,168 Misr Beni Suef Cement UPM-Kymmene Oyj ............. 25,744 306,065 Co. ....................... 2,350 54,216 Wartsila Oyj ................ 840 33,669 Misr Cement Co.(1) .......... 2,600 40,297 ------------ National Societe General TOTAL FINLAND ............................. 2,014,185 Bank SAE .................. 5,445 29,185 ------------ Olympic Group FRANCE -- 4.8% Financial Investments ..... 7,000 34,796 Accor SA .................... 4,313 236,016 Orascom Construction Aeroports de Paris .......... 1,420 114,137 Industries ................ 5,050 228,849 Air France KLM* ............. 6,195 97,220 Orascom Telecom Alcatel-Lucent* ............. 42,218 142,157 Holding SAE ............... 10,250 46,871 Alstom ...................... 4,302 300,864 Oriental Weavers ............ 4,647 26,919 AXA SA ...................... 64,848 1,522,564 Sidi Kerir Petrochemcials BNP Paribas ................. 31,891 2,529,497 Co. ....................... 23,000 42,839 Bouygues SA ................. 2,635 136,488 Six of October Bull SA* .................... 37,193 163,150 Development & Cap Gemini SA ............... 1,950 88,959 Investment* ............... 1,710 24,642 Carrefour SA ................ 4,825 231,440 South Valley Cement* ........ 10,835 13,514 Casino Guichard-Perrachon Talaat Moustafa Group* ...... 23,500 29,561 SA ........................ 1,455 129,633 Telecom Egypt ............... 30,200 99,315 Cegid Group ................. 560 12,512 ------------ CFAO SA* .................... 806 33,127 TOTAL EGYPT ............................... 1,276,600 Christian Dior SA ........... 2,860 293,092 ------------ Cie Generale de ESTONIA -- 0.1% Geophysique-Veritas* ...... 1,200 25,500 AS Baltika*(1) .............. 29,700 30,951 CNP Assurances .............. 3,758 363,907 AS Eesti Ehitus(1) .......... 12,000 27,180 Compagnie de Saint- AS Jarvevana* ............... 14,700 7,304 Gobain .................... 12,378 671,460 AS Merko Ehitus(1) .......... 14,700 106,111 Copagnie des Alpes .......... 700 26,451 The accompanying notes are an integral part of the financial statements. 78
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ FRANCE -- (CONTINUED) FRANCE -- (CONTINUED) Compagnie Generale de Thales SA ................... 326 $ 16,755 Geophysique* .............. 2,862 $ 60,837 Total SA .................... 27,593 1,772,295 Compagnie Generale des Unibail-Rodamco SE .......... 649 142,572 Etablissements Valeo SA* ................... 5,958 208,529 Michelin - Class B ........ 851 65,177 Vallourec SA ................ 642 116,150 Credit Agricole SA .......... 28,920 507,542 Veolia Environnement ........ 3,922 129,281 Devoteam SA ................. 600 15,548 Vinci SA .................... 5,823 327,666 Eiffage SA .................. 542 30,549 Vivendi Universal SA ........ 38,796 1,151,454 Electricite de France ....... 2,055 122,135 ------------ Euro Disney SCA* ............ 1,200 8,329 TOTAL FRANCE .............................. 22,569,349 Eutelsat Communications ..... 1,191 38,212 ------------ France Telecom SA ........... 31,748 793,327 GERMANY -- 4.0% GDF Suez .................... 20,523 889,077 Adidas AG ................... 2,248 121,764 Groupe Danone ............... 2,969 182,005 ADVA AG Optical Groupe Eurotunnel SA ........ 14,253 133,384 Networking* ............... 26,571 96,370 Groupe Steria SCA ........... 4,279 131,462 Allianz SE - Registered Hermes International ........ 473 62,967 Shares .................... 26,662 3,305,019 Iliad SA .................... 83 9,919 Amadeus Fire AG ............. 800 18,503 Klepierre ................... 1,169 47,362 BASF SE ..................... 18,291 1,132,042 L'Air Liquide SA ............ 831 98,829 Bayer AG .................... 7,745 619,782 L'Oreal SA .................. 2,317 258,776 Bayerische Motoren L.D.C. SA ................... 153 17,810 Werke (BMW) AG ............ 10,520 478,894 LaCie SA* ................... 2,361 9,938 Beiersdorf AG ............... 149 9,820 Lafarge SA .................. 8,132 669,703 Celesio AG .................. 5,499 139,237 Lagardere SCA ............... 7,221 292,346 Cewe Color Holding AG ....... 1,000 32,999 Legrand Holding SA .......... 6,515 181,323 Commerzbank AG* ............. 15,763 132,296 Linedata Services ........... 2,883 38,504 DaimlerChrysler AG - LVMH Moet Hennessy Registered Shares ......... 15,402 820,653 Louis Vuitton SA .......... 2,448 274,489 Deutsche Bank AG ............ 15,694 1,109,722 NetGem SA ................... 4,954 29,593 Deutsche Bank AG - Nexans SA ................... 2,212 175,707 Registered Shares ......... 6,600 468,006 PagesJaunes Groupe .......... 1,244 13,866 Deutsche Boerse AG .......... 750 62,107 Parrot SA* .................. 900 13,247 Deutsche Lufthansa AG - Pernod-Ricard SA ............ 827 70,716 Registered Shares ......... 17,785 300,312 Peugeot SA* ................. 6,128 206,008 Deutsche Post AG - Pinault-Printemps-Redoute Registered Shares ......... . 9,459 182,812 SA ........................ 3,556 426,844 Deutsche Postbank AG* ....... 557 18,196 Plastic Omnium SA ........... 3,537 96,761 Deutsche Telekom AG ......... 45,638 669,500 Publicis Groupe SA .......... 2,097 85,264 Deutsche Telekom AG - Renault SA* ................. 12,549 643,761 ADR ....................... 36,500 536,550 Sanofi-Aventis SA ........... 37,574 2,954,923 E.On AG ..................... 47,458 1,992,004 Schneider Electric SA ....... 2,344 272,543 Elmos Semiconductor SCOR SE ..................... 14,597 366,706 AG* ....................... 4,047 38,114 Societe Generale ............ 14,364 998,010 Fraport AG Frankfurt Spir Communication* ......... 396 9,776 Airport Services Suez Environnement SA ....... 2,472 57,002 Worldwide ................. 8,721 450,258 Technip SA .................. 3,215 226,196 Fresenius SE ................ 2,392 149,215 GEA Group AG ................ 7,915 176,314 The accompanying notes are an integral part of the financial statements. 79
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ GERMANY -- (CONTINUED) GHANA -- (CONTINUED) Generali Deutschland Ghana Commercial Holding AG .................. 495 $ 52,127 Bank, Ltd.(1) .............. 106,696 $ 55,146 Grammer AG* ................. 2,104 18,014 Produce Buying Co., Hamburger Hafen Und Ltd.*(1) ................... 162,500 20,202 Logistik AG ............... 96 3,708 Standard Chartered Hannover Bank(1) .................... 2,200 46,097 Rueckversicherungs ------------ AG* ....................... 750 35,040 TOTAL GHANA ................................ 251,796 HeidelbergCement AG ......... 2,413 166,936 ------------ Henkel AG & Co.KGaA ......... 2,766 123,920 GREECE -- 0.2% Highlight Communications Alpha Bank AE* ............... 647 7,550 AG ........................ 3,483 20,272 Coca-Cola Hellenic Hochtief AG ................. 260 19,829 Bottling Co. SA ............ 2,942 66,970 Infineon Technologies Hellenic Petroleum SA ........ 7,392 82,759 AG* ....................... 24,430 135,913 Hellenic K+S AG ...................... 3,376 192,544 Telecommunications Linde AG .................... 835 100,603 Organization SA ............ 2,537 37,237 MAN AG ...................... 1,359 105,448 Marfin Investment Merck KGaA .................. 1,268 118,897 Group SA* .................. 64,765 183,587 Metro AG .................... 1,425 87,029 National Bank of MTU Aero Engines Greece SA* ................. 2,316 59,502 Holding AG ................ 6,537 355,773 National Bank of Muenchener Greece SA - ADR ............ 20,730 108,003 Rueckversicherungs- OPAP SA ...................... 1,233 27,089 Gesellschaft AG ........... 7,888 1,228,632 Piraeus Bank SA* ............. 9,582 109,957 Nemetschek AG* .............. 1,382 31,976 Public Power Corp. SA* ....... 3,721 69,010 OHB Technology AG ........... 1,036 16,634 Titan Cement Co. SA .......... 1,910 55,398 RWE AG ...................... 5,485 529,026 ------------ Salzgitter AG ............... 2,464 241,444 TOTAL GREECE ............................... 807,062 SAP AG ...................... 6,793 323,843 ------------ Siemens AG .................. 9,412 863,747 GUERNSEY -- 0.0% STO AG ...................... 290 25,884 Resolution, Ltd.* ............ 1 1 Suedzucker AG ............... 8,005 166,788 ------------ ThyssenKrupp AG ............. 7,585 285,137 TOTAL GUERNSEY ............................. 1 Tipp24 SE ................... 300 12,378 ------------ TUI AG* ..................... 7,172 59,962 HONG KONG -- 2.9% Villeroy & Boch AG .......... 1,585 12,429 Agile Property Holdings, Volkswagen AG ............... 1,586 175,725 Ltd. ....................... 154,000 223,548 VTG AG ...................... 1,200 19,821 Alco Holdings, Ltd. .......... 18,000 6,568 Wacker Chemie AG ............ 87 15,133 Aluminum Corp. of ------------ China, Ltd. - Class H* ..... 38,000 41,395 TOTAL GERMANY ............................. 18,605,101 ASM Pacific Technology, ------------ Ltd. ....................... 2,900 27,419 GHANA -- 0.1% Bank of East Asia, Ltd. ...... 9,200 36,143 Aluworks Ghana, Beijing Capital Ltd.*(1) .................. 232,000 60,765 International Airport CAL Bank, Ltd.(1) ......... 498,146 69,586 Co., Ltd. - Class H* ....... 54,684 35,906 Beijing Enterprises Holdings, Ltd. - Class H .................... 13,500 97,777 The accompanying notes are an integral part of the financial statements. 80
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ HONG KONG -- (CONTINUED) HONG KONG -- (CONTINUED) Belle International Denway Motors, Ltd. ......... 182,000 $ 114,976 Holdings Ltd. ............. 11,000 $ 12,743 Dongfeng Motor Group BOC Hong Kong, Ltd. ......... 86,000 193,214 Co., Ltd. - Class H ....... 304,000 434,103 Cathay Pacific Airways, Emperor Entertainment Ltd.* ..................... 25,000 46,427 Hotel, Ltd. ............... 85,000 9,707 Champion Technology Esprit Holdings, Ltd. ....... 35,794 237,483 Holdings, Ltd. ............ 640,000 20,926 Fairwood, Ltd. .............. 23,000 22,667 Chaoda Modern Foxconn International Agriculture Holdings, Holdings, Ltd.* ........... 87,000 100,155 Ltd. ...................... 36,140 38,471 Global Bio-Chem Cheung Kong Holdings, Tecnology Group Co., Ltd. ...................... 45,000 578,260 Ltd. ...................... 130,000 31,828 Cheung Kong GOME Electrical Infrastructure Holdings, Appliances Holdings, Ltd. ...................... 10,000 38,027 Ltd.* ..................... 522,331 188,078 China Agri-Industries Hang Lung Group, Ltd. ....... 5,000 24,728 Holdings, Ltd. ............ 51,000 66,632 Hang Lung Properties, China COSCO Holdings Ltd. ...................... 6,000 23,522 Co., Ltd. - Class H ....... 36,000 43,818 Hang Seng Bank, Ltd. ........ 6,500 95,628 China Green Holdings, Henderson Land Ltd. ...................... 45,000 42,614 Development Co., Ltd. ..... 39,000 291,437 China Life Insurance Hengan International Co., Ltd. - Class H ....... 183,931 900,027 Group Co., Ltd. ........... 14,000 103,660 China Mengniu Dairy Hong Kong & China Co., Ltd.* ................ 117,000 415,914 Gas Co., Ltd. ............. 18,000 45,147 China Merchants Hong Kong Exchanges Holdings International & Clearing, Ltd. .......... 18,400 327,381 Co., Ltd. ................. 39,470 127,328 Hongkong Electric China Mobile, Ltd. .......... 104,509 972,407 Holdings, Ltd. ............ 17,000 92,604 China Overseas Land & Hung Hing Printing Investment, Ltd. .......... 32,320 67,720 Group, Ltd. ............... 80,000 25,506 China Petroleum & Hutchinson Whampoa, Chemical Corp. - Ltd. ...................... 175,400 1,200,065 Class H ................... 792,000 697,788 Hutchison China Resources Telecommunications Enterprise, Ltd. .......... 38,000 138,050 International, Ltd.* ...... 92,000 19,008 China Resources Land, Jiangxi Copper Co., Ltd. ...................... 28,000 63,027 Ltd. - Class H ............ 20,000 46,773 China Resources Power Jinhui Holdings, Ltd.* ...... 32,000 11,029 Holdings Co., Ltd. ........ 17,600 34,866 Keck Seng Investments ....... 84,000 42,300 China Unicom Hongkong, Kerry Properties, Ltd. ...... 25,500 128,980 Ltd. ...................... 128,652 168,826 Kingboard Chemicals Citic Pacific, Ltd. ......... 76,000 202,983 Holdings, Ltd. ............ 13,000 51,219 CLP Holdings, Ltd. .......... 19,500 131,968 Lee & Man Paper CNOOC, Ltd. ................. 272,531 424,589 Manufacturing Ltd.* ....... 321,600 221,911 CNPC Hong Kong, Ltd. ........ 22,000 29,012 Lenovo Group, Ltd. .......... 758,000 469,751 COSCO Pacific, Ltd. ......... 16,000 20,306 Li & Fung, Ltd. ............. 24,000 99,227 The accompanying notes are an integral part of the financial statements. 81
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ HONG KONG -- (CONTINUED) INDIA -- 1.4% Mongolia Energy Co., Bajaj Holdings and Ltd.* ..................... 88,000 $ 44,777 Investment, Ltd. - New World Development GDR ....................... 2,000 $ 26,200 Co., Ltd. ................. 68,851 140,278 Dr Reddys Laboratories, Nine Dragons Paper Ltd. - ADR ................ 15,894 384,794 Holdings, Ltd. ............ 16,000 25,521 GAIL India, Ltd. - GDR ...... 1,770 94,574 Noble Group, Ltd. ........... 6,602 15,143 HDFC Bank, Ltd. - ADR ....... 4,136 538,011 Orient Overseas ICICI Bank, Ltd. - International, Ltd. ....... 1,500 6,956 Sponsored ADR ............. 18,255 688,396 Pacific Basin Shipping, Infosys Technologies, Ltd. ...................... 45,000 32,252 Ltd. - Sponsored ADR ...... 22,543 1,245,952 PetroChina Co., Ltd. - ITC, Ltd. RegS GDR* ......... 84,500 455,485 Class H ................... 659,957 784,592 Reliance Industries, RCG Holdings, Ltd.* ......... 19,870 25,674 Ltd. - 144A GDR Shanghai Industrial (New York Holdings, Ltd. ............ 59,000 299,263 Exchange) ................. 8,076 378,523 Shangri-La Asia, Ltd. ....... 14,000 26,230 Reliance Industries, Shenzhen Investment, Ltd. - 144A GDR Ltd. ...................... 262,000 110,536 (London Exchange) ......... 11,740 544,840 Sino Land Co., Ltd. ......... 70,000 134,766 Reliance Infrastructure, Sun Hung Kai Properties, Ltd. - GDR ................ 1,720 111,302 Ltd. ...................... 35,000 520,420 State Bank of India, SUNeVision Holdings, Ltd. - GDR (New York Ltd. ...................... 104,000 12,012 Exchange) ................. 8,610 643,506 Swire Pacific, Ltd. - Sterlite Industries India, Class A ................... 3,000 36,280 Ltd. - ADR ................ 33,174 604,430 Wharf Holdings, Ltd. ........ 56,625 324,972 Tata Motors, Ltd. - ADR ..... 25,383 427,957 Wheelock & Co., Ltd. ........ 107,000 326,381 Wipro, Ltd. - ADR ........... 15,447 344,005 Wumart Stores, Inc. - ------------ Class H ................... 57,000 89,845 TOTAL INDIA ............................... 6,487,975 Yue Yuen Industrial, Ltd. ... 22,500 65,143 ------------ ------------ INDONESIA -- 1.2% TOTAL HONG KONG ........................... 13,424,613 AKR Corporindo Tbk ------------ Pt ........................ 376,000 45,916 HUNGARY -- 0.4% Aneka Tambang (Persero) Egis Gyogyszergyar Nyrt Tbk Pt .................... 190,000 44,330 PLC ....................... 380 37,795 Astra International FHB Mortgage Bank Tbk Pt .................... 235,500 865,791 PLC* ...................... 2,400 16,467 Bakrie and Brothers Gedeon Richter Nyrt ......... 1,330 301,899 Tbk Pt* ................... 5,603,500 50,192 Magyar Telecom Bank Central Asia Telecommunications Tbk Pt .................... 688,000 352,115 PLC ....................... 65,270 253,154 Bank Danamon Indonesia MOL Hungarian Oil and Tbk Pt .................... 373,622 178,824 Gas Nyrt* ................. 3,823 344,597 Bank Mandiri Persero OTP Bank Nyrt* .............. 37,833 1,083,913 Tbk Pt .................... 1,075,500 530,092 ------------ Bank Negara Indonesia TOTAL HUNGARY ............................. 2,037,825 Persero Tbk Pt ............ 915,000 191,738 ------------ The accompanying notes are an integral part of the financial statements. 82
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ INDONESIA -- (CONTINUED) ISRAEL -- 0.9% Bank Rakyat Indonesia Africa Israel Investments, (Persero) Tbk Pt .......... 474,517 $ 381,385 Ltd.* ..................... 400 $ 4,990 Barito Pacific Tbk Pt* ...... 269,000 37,947 Alvarion, Ltd.* ............. 3,200 11,365 Bumi Resources Tbk Pt ....... 911,000 231,953 Arab East Investment Co., Gudang Garam Tbk Pt ......... 94,500 215,850 Ltd.* ..................... 10,828 14,274 Holcim Indonesia Bank Leumi le-Israel Tbk Pt* ................... 460,000 75,652 BM* ....................... 46,100 210,690 Indah Kiat Pulp & Paper Bezeq Israeli Corp. Tbk Pt* ............. 276,000 51,419 Telecommunication Indocement Tunggal Corp., Ltd. ............... 209,960 529,370 Prakarsa Tbk Pt ........... 65,000 93,960 Cellcom Israel, Ltd. ........ 650 20,839 Indofood Sukses Makmur Check Point Software Tbk Pt .................... 531,000 199,544 Technologies, Ltd.* ....... 12,531 424,550 Indosat Tbk Pt .............. 137,500 68,431 Clal Insurance Enterprises International Nickel Holdings, Ltd.* ........... 1,100 23,778 Indonesia Tbk Pt .......... 150,000 57,976 Delek Automotive Kalbe Farma Tbk Pt .......... 644,000 88,232 Systems, Ltd. ............. 3,400 37,835 Lippo Karawaci Tbk Pt* ...... 501,000 26,836 Delek Group, Ltd. ........... 500 101,100 Medco Energi Discount Investment Internasional Tbk Pt ...... 133,000 34,561 Corp. ..................... 1,000 23,391 Perusahaan Gas Negara Elbit Systems, Ltd. ......... 700 45,284 Pt ........................ 559,000 230,993 Gazit Globe, Ltd. ........... 2,400 23,463 Semen Gresik (Persero) Harel Insurance Tbk Pt .................... 122,500 97,568 Investments & Financial Sinar Mas Agro Services, Ltd.* ........... 550 27,261 Resources and IDB Holding Corp., Ltd. ..... 950 28,164 Technology Tbk Pt(1) ...... 69,500 18,901 Israel Chemicals, Ltd. ...... 23,370 306,874 Tambang Balubara Bukit Israel Corp., Ltd.* ......... 160 114,886 Asam Tbk Pt ............... 58,500 106,522 Israel Discount Bank, Telekomunikasi Indonesia Ltd. - Class A* ........... 38,000 89,641 Tbk Pt .................... 771,184 767,292 Koor Industries, Ltd. ....... 450 13,044 Unilever Indonesia Makhteshim-Agan Tbk Pt .................... 93,000 107,869 Industries, Ltd. .......... 20,000 94,980 United Tractors Tbk Pt ...... 275,500 451,169 Migdal Insurance & ------------ Financial Holding, TOTAL INDONESIA ........................... 5,603,058 Ltd.* ..................... 29,594 54,145 ------------ Mizrahi Tefahot Bank, IRELAND -- 0.2% Ltd.* ..................... 12,100 110,458 CRH PLC (Dublin Nice Systems, Ltd.* ......... 2,100 65,080 Exchange) ................. 4,839 132,266 Oil Refineries, Ltd.* ....... 55,500 28,093 CRH PLC - ADR ............... 11,400 311,562 Orbotech, Ltd.* ............. 1,300 12,181 Dragon Oil PLC* ............. 3,106 19,385 Ormat Industries ............ 3,500 31,762 Julius Baer Holding AG ...... 868 10,511 Partner Communications Kerry Group PLC - Co., Ltd. ................. 3,743 75,867 Class A ................... 7,471 219,715 Property & Building The Governor & Co. of Corp., Ltd. ............... 500 37,610 the Bank of Ireland* ...... 6,414 12,139 Shufersal Ltd. .............. 7,500 38,163 ------------ TOTAL IRELAND ............................. 705,578 ------------ The accompanying notes are an integral part of the financial statements. 83
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ ISRAEL -- (CONTINUED) JAPAN -- (CONTINUED) Teva Pharmaceutical Aisin Seiki Co., Ltd. ...... 4,716 $ 136,249 Industries, Ltd. - ADR ... 30,562 $ 1,716,973 Ajinomoto Co., Inc. ........ 6,000 56,471 ------------ Alfresa Holdings Corp. ..... 3,100 123,253 TOTAL ISRAEL ............................ 4,316,111 Amada Co., Ltd. ............ 85,000 532,402 ------------ Amiyaki Tei Co., Ltd. ...... 10 20,419 ITALY -- 1.6% Ando Corp. ................. 7,000 7,655 A2A SPA .................... 36,883 77,381 AOI Electronic Co., Ltd. ... 1,600 26,613 Assicurazioni Generali Aoyama Trading Co., Ltd. ... 2,400 30,634 SPA ...................... 6,467 174,223 Arakawa Chemical Atlantia SPA ............... 7,496 196,036 Industries, Ltd. ......... 5,200 60,987 Banca Carige SPA ........... 10,481 27,978 Argo Graphics, Inc. ........ 5,800 56,379 Banca Monte dei Paschi Asahi Breweries, Ltd. ...... 2,600 47,885 di Siena SPA ............. 97,667 170,738 Asahi Glass Co., Ltd. ...... 9,000 85,608 Banca Popolare di Asahi Industries Co., Ltd. . 6 12,013 Milano Scrl .............. 9,758 69,328 Asahi Kasei Corp. .......... 85,000 425,888 Banco Popolare Scrl* ....... 18,403 137,860 Asahi Kogyosha Co., Ltd. ... 2,000 7,916 Buzzi Unicem SPA ........... 1,409 22,669 Asset Managers Holdings Co., Danieli & Co SPA ........... 2,598 64,535 Ltd.* .................... 200 15,717 Enel SPA ................... 204,881 1,186,135 Astellas Pharma, Inc. ...... 35,900 1,339,375 ENI SPA .................... 31,564 803,802 Bando Chemical Industries, Fiat SPA* .................. 7,264 106,301 Ltd ...................... 18,000 51,733 Finmeccanica SPA ........... 5,141 82,312 Benesse Holdings, Inc. ..... 400 16,724 Intesa Sanpaolo SPA* ....... 232,348 1,045,570 Bridgestone Corp. .......... 3,700 65,267 Intesa Sanpaolo SPA - RSP .. 10,564 35,395 Brother Industries, Ltd. ... 11,400 131,105 Italcementi SPA ............ 1,923 26,304 C Uyemura & Co., Ltd. ...... 300 11,615 Luxottica Group SPA ........ 351 9,075 CAC Corp. .................. 4,000 28,568 Mediaset SPA ............... 7,120 58,540 Canon Marketing Japan, Mediobanca SPA* ............ 6,352 75,460 Inc. ..................... 7,800 114,941 Parmalat SPA ............... 205,943 575,758 Canon, Inc. ................ 13,533 575,668 Permasteelisa SPA* ......... 500 9,287 Central Japan Railway Co. .. 56 374,821 Servizi Italia SPA ......... 2,333 17,545 Certo Corp. ................ 3,700 58,425 Snam Rete Gas SPA .......... 1,942 9,644 Chubu Electric Power Co., Telecom Italia SPA ......... 138,828 202,222 Inc. ..................... 7,000 166,987 Telecom Italia SPA - Chubu Steel Plate Co., ADR ...................... 15,200 234,536 Ltd. ..................... 17,400 92,650 UniCredit SPA* ............. 577,003 1,929,357 Chuetsu Pulp & Paper Co., Unione di Banche Ltd. ..................... 11,000 18,820 Italiane SCPA ............ 11,474 164,467 Chuo Spring Co., Ltd. ...... 5,000 15,541 ------------ Coca-Cola West Co., Ltd. ... 1,400 24,701 TOTAL ITALY ............................. 7,512,458 COMSYS Holdings Corp. ...... 3,000 31,559 ------------ Cosmo Oil Co., Ltd. ........ 23,000 48,328 JAPAN -- 9.8% Credit Saison Co., Ltd. .... 2,700 30,238 Advantest Corp. ............ 600 15,630 Crescendo Investment Aeon Co., Ltd. ............. 23,600 191,551 Corp ..................... 59 74,418 Aeon Fantasy Co., Ltd. ..... 5,200 55,674 Aeon Mall Co., Ltd. ........ 600 11,624 Airport Facilities Co., Ltd ...................... 5,300 26,847 The accompanying notes are an integral part of the financial statements. 84
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ JAPAN -- (CONTINUED) JAPAN -- (CONTINUED) Cybernet Systems Co., Furusato Industries, Ltd. .. 5,800 $ 32,979 Ltd ...................... 52 $ 21,380 Gendai Agency, Inc. ........ 43 44,086 Dai Nippon Printing Co., Glory, Ltd. ................ 1,200 26,688 Ltd ...................... 48,000 612,001 GS Yuasa Corp. ............. 4,000 29,571 Dai-Dan Co., Ltd. .......... 9,000 46,920 Hakuhodo DY Holdings, Daicel Chemical Industries, Inc ...................... 770 37,507 Ltd ...................... 25,000 146,848 Hakuto Co., Ltd. ........... 2,500 21,796 Daido Steel Co., Ltd. ...... 21,725 80,650 Hazama Corp. ............... 21,500 19,233 Daihatsu Diesel HI-LEX Corp. ............... 1,000 9,232 Manufacturing Co., Ltd. .. 5,000 18,206 Hino Motors, Ltd.* ......... 18,000 62,277 Daiichi Jitsugyo Co., HIS Co., Ltd. .............. 3,700 67,318 Ltd ...................... 33,000 85,774 Hitachi Cable, Ltd. ........ 26,000 78,631 Daiichi Sankyo Co., Ltd. ... 5,200 109,051 Hitachi Construction Daiichikosho Co., Ltd. ..... 700 7,900 Machinery Co., Ltd. ...... 409 10,721 Daikin Industries, Ltd. .... 502 19,827 Hitachi High-Technologies Daisyo Corp. ............... 6,800 90,526 Corp ..................... 1,500 29,760 Daito Trust Construction Hitachi Medical Corp. ...... 7,000 58,449 Co., Ltd. ................ 4,100 194,127 Hitachi, Ltd.* ............. 162,000 498,004 Daiwa House Industry Co., Hitachi, Ltd. - ADR* ....... 12,519 384,083 Ltd ...................... 22,000 236,558 Hokkaido Electric Power Daiwa Securities Group, Co ....................... 4,500 81,633 Inc ...................... 30,000 150,978 Hokkaido Gas Co., Ltd. ..... 13,000 34,342 Denso Corp. ................ 8,868 267,962 Honda Motor Co., Ltd. ...... 45,840 1,555,277 Dowa Holdings Co., Ltd. .... 13,000 71,929 House Foods Corp. .......... 1,600 22,763 DTS Corp. .................. 2,700 25,551 Hoya Corp. ................. 1,800 48,028 East Japan Railway Co., Ichinen Holdings Co., Ltd ...................... 7,070 447,390 Ltd ...................... 1,800 6,908 Eisai Co., Ltd. ............ 3,516 129,269 Idemitsu Kosan Co., Ltd. ... 1,700 99,244 Electric Power Development Imasen Electric Co., Ltd. ................ 3,000 85,298 Industrial ............... 5,000 63,953 Elematec Corp. ............. 3,600 38,904 Inabata & Co., Ltd. ........ 12,000 42,636 Epilda Memory, Inc.* ....... 3,400 55,413 Ines Corp. ................. 1,300 10,066 FamilyMart Co., Ltd. ....... 200 5,904 Information Services Fanuc, Ltd. ................ 1,433 133,557 International-Dentsu, Fuji Electric Holdings Co., Ltd ...................... 11,300 66,352 Ltd.* .................... 39,000 67,446 Isetan Mitsukoshi Holdings, Fuji Electronics Co., Ltd ...................... 11,200 101,127 Ltd ...................... 1,700 14,718 Itochu Corp. ............... 31,690 234,085 Fuji Film Holdings Corp. ... 24,400 736,889 Itochu Enex Co., Ltd. ...... 4,600 18,946 Fuji Heavy Industries, J Front Retailing Co., Ltd.* .................... 23,000 112,384 Ltd ...................... 11,000 48,579 Fuji Media Holdings, Inc. .. 234 324,223 Japan Tobacco, Inc. ........ 58 195,835 Fuji Soft, Inc. ............ 9,100 145,839 JBCC Holdings, Inc. ........ 7,000 43,524 Fujikura, Ltd. ............. 7,000 36,460 JFE Holdings, Inc. ......... 1,800 71,151 Fujitsu, Ltd. .............. 87,900 570,326 JMS Co., Ltd. .............. 15,000 58,799 Fukuda Denshi Co., Ltd. .... 400 9,764 Joban Kosan Co., Ltd. ...... 5,000 7,857 Fukuoka Financial Group, JS Group Corp. (Tostem Inc ...................... 36,000 125,459 Inax Holding Corp.) ...... 6,000 103,288 The accompanying notes are an integral part of the financial statements. 85
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ JAPAN -- (CONTINUED) JAPAN -- (CONTINUED) JSP Corp. .................. 1,500 $ 15,804 Marubeni Corp. ............. 21,000 $ 116,002 JSR Corp. .................. 2,000 40,703 Marubun Corp. .............. 2,700 16,567 JTEKT Corp. ................ 2,900 37,299 Marui Co., Ltd. ............ 14,400 88,665 Kajima Corp. ............... 24,000 48,560 Matsui Securities Co., Kamei Corp. ................ 13,000 61,425 Ltd. ..................... 5,900 41,106 Kamigumi Co., Ltd. ......... 4,000 29,187 Mazda Motor Corp.* ......... 35,000 80,479 Kaneka Corp. ............... 36,000 229,368 MEIJI Holdings Co., Ltd.* .. 700 26,452 Kanematsu Corp.* ........... 7,000 5,212 Meisei Industrial Co., Kanematsu Electronics, Ltd. ..................... 34,000 72,743 Ltd. ..................... 11,700 102,723 Mercian Corp. .............. 30,000 63,040 Kao Corp. .................. 7,200 168,743 Mimasu Semiconductor Kasumi Co., Ltd. ........... 3,000 14,698 Industry Co., Ltd. ....... 10,200 122,553 Kawada Technologies, Minebea Co., Ltd. .......... 5,000 27,132 Inc.* .................... 1,300 20,813 Mitsubishi Chemical Holdings Kawasaki Heavy Industries, Corp. .................... 37,000 157,557 Ltd. ..................... 4,000 10,153 Mitsubishi Corp. ........... 21,576 537,423 Kawasaki Kisen Kaisha, Mitsubishi Electric Ltd.* .................... 21,000 60,003 Corp.* ................... 6,335 47,060 KDDI Corp. ................. 16 84,747 Mitsubishi Estate Co., Keihanshin Real Estate Co., Ltd. ..................... 3,500 55,880 Ltd. ..................... 8,300 38,144 Mitsubishi Gas Chemical Co., Kinden Corp. ............... 3,000 25,421 Inc. ..................... 14,000 70,548 Kintetsu Corp. ............. 23,000 76,235 Mitsubishi Heavy Industries, Kirin Holdings Co., Ltd. ... 8,800 141,124 Ltd. ..................... 88,000 310,370 Kobe Steel, Ltd.* .......... 48,000 86,985 Mitsubishi Logistics Komatsu Wall Industry Co., Corp. .................... 3,000 35,392 Ltd. ..................... 800 9,195 Mitsubishi Materials Komatsu, Ltd. .............. 10,211 213,757 Corp.* ................... 36,000 88,047 Konica Minolta Holdings, Mitsubishi Tanabe Pharma Inc. ..................... 10,500 108,204 Corp. .................... 2,000 24,955 Konishi Co., Ltd. .......... 5,100 51,931 Mitsubishi UFJ Financial KRS Corp. .................. 1,900 19,281 Group, Inc. .............. 122,493 603,369 Kubota Corp. ............... 15,074 138,315 Mitsubishi UFJ Lease & Kuraray Co., Ltd. .......... 2,000 23,539 Finance Co., Ltd. ........ 240 7,230 Kurita Water Industries, Mitsui & Co., Ltd. ......... 39,894 565,935 Ltd. ..................... 2,523 79,266 Mitsui Chemicals, Inc. ..... 30,000 77,678 Kyocera Corp. .............. 1,039 91,504 Mitsui Engineering & Kyocera Corp. - ADR ........ 600 53,130 Shipbuilding Co., Ltd. ... 19,000 45,760 Kyodo Printing Co., Ltd. ... 25,000 67,344 Mitsui Fudosan Co., Ltd. ... 3,000 50,724 Kyushu Electric Power Co., Mitsui Home Co., Ltd. ...... 14,000 67,312 Inc. ..................... 6,100 125,640 Mitsui O.S.K. Lines, Ltd. .. 16,000 84,522 Lawson, Inc. ............... 200 8,833 Mitsui Sumitomo Leopalace21 Corp.* ......... 11,100 45,993 Insurance Group Macnica, Inc. .............. 1,200 18,109 Holdings, Inc. ........... 3,400 86,839 Maezawa Kasei Industries Mitsumi Electric Co., Co., Ltd. ................ 4,900 49,093 Ltd. ..................... 8,700 153,664 Makita Corp. ............... 5,700 195,782 The accompanying notes are an integral part of the financial statements. 86
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ JAPAN -- (CONTINUED) JAPAN -- (CONTINUED) Mizuho Financial Group, Nippon Yusen Kabushiki Inc. ..................... 147,300 $ 264,887 Kaisha ................... 26,000 $ 80,075 Murata Manufacturing Co., Nipponkoa Insurance Co., Ltd. ..................... 800 39,925 Ltd. ..................... 10,000 56,935 Nafco Co., Ltd. ............ 1,000 15,932 NIS Group Co., Ltd.* ....... 27,300 8,881 Nagase & Co., Ltd. ......... 3,000 34,394 Nishimatsu Construction Namco Bandai Holdings, Co., Ltd. ................ 39,000 42,469 Inc. ..................... 8,500 81,200 Nissan Chemical Industries, Namura Shipbuilding Co., Ltd. ..................... 2,000 28,508 Ltd. ..................... 2,300 11,785 Nissan Motor Co., Ltd.* .... 138,300 1,215,357 NEC Corp.* ................. 116,000 299,848 Nisshin Seifun Group, NEC Fielding, Ltd. ......... 6,800 91,955 Inc. ..................... 29,500 398,660 NEC Mobiling, Ltd. ......... 4,100 100,575 Nisshin Steel Co., Ltd. .... 78,000 137,897 NEC Networks & System Nisshinbo Holdings, Inc. ... 3,000 27,796 Integration Corp. ........ 2,300 27,781 Nitori Co., Ltd. ........... 1,500 111,647 NGK Insulators, Ltd. ....... 6,000 131,215 Nittan Valve Co., Ltd. ..... 2,100 5,999 Nichiban Co., Ltd. ......... 15,000 45,981 Nitto Denko Corp. .......... 1,500 53,885 Nidec Corp. ................ 2,319 214,327 Noevir Co., Ltd. ........... 6,000 61,949 Nihon Kagaku Sangyo Co., Nok Corp. .................. 2,200 30,344 Ltd. ..................... 1,000 6,510 Nomura Holdings, Inc. ...... 31,900 237,228 Nihon Shokuhin Kako Co., Nomura Real Estate Ltd. ..................... 2,000 14,399 Holdings, Inc. ........... 3,100 45,986 Nihon Yamamura Glass Co., NS Solutions Corp. ......... 1,300 20,501 Ltd. ..................... 81,000 266,594 NTN Corp. .................. 8,000 36,145 Nikon Corp. ................ 2,500 49,366 NTT DoCoMo, Inc. ........... 215 300,027 Nintendo Co., Ltd. ......... 1,043 249,105 Ohashi Technica, Inc. ...... 5,500 30,479 Nippo Corp. ................ 24,000 171,436 Ohbayashi Corp. ............ 23,000 78,288 Nippon Building Fund, OJI Paper Co., Ltd. ........ 40,000 167,592 Inc. ..................... 1 7,600 Olympus Corp. .............. 900 29,017 Nippon Express Co., Ltd. ... 78,000 322,118 Oriental Yeast Co., Ltd. ... 2,000 10,128 Nippon Game Card Corp. ..... 13 14,285 ORIX Corp. ................. 1,280 87,147 Nippon Meat Packers, Inc. .. 4,000 46,309 Osaka Gas Co., Ltd. ........ 61,000 205,586 Nippon Mining Holdings, Pal Co., Ltd. .............. 1,450 25,131 Inc. ..................... 51,000 218,880 Panasonic Corp. ............ 21,225 305,561 Nippon Oil Corp. ........... 65,000 301,344 Panasonic Electric Nippon Paper Group, Inc. ... 5,200 132,705 Works Co., Ltd. .......... 8,000 96,927 Nippon Sheet Glass Co., Panasonic Electric Works Ltd. ..................... 74,000 212,067 Information Systems Co., Nippon Shokubai Co., Ltd. .. 4,000 34,385 Ltd. ..................... 8,000 202,520 Nippon Steel Corp. ......... 11,000 44,571 Piolax, Inc. ............... 1,700 29,064 Nippon Telegraph & Pressance Corp. ............ 6 10,248 Telephone Corp. .......... 31,026 1,225,611 Promise Co., Ltd.* ......... 3,400 26,096 Nippon Television Network Rakuten, Inc. .............. 70 53,293 Corp. .................... 180 23,397 Relo Holdings, Inc. ........ 2,700 36,796 Resona Holdings, Inc. ...... 15,500 157,475 Ricoh Co., Ltd. ............ 82,276 1,178,902 Rock Field Co., Ltd. ....... 100 1,304 The accompanying notes are an integral part of the financial statements. 87
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ JAPAN -- (CONTINUED) JAPAN -- (CONTINUED) Rohm Co., Ltd. ............. 3,100 $ 202,313 Sony Financial Holdings, Ryoden Trading Co., Ltd. ... 20,000 98,478 Inc ...................... 4 $ 10,410 Ryoyo Electro Corp. ........ 7,500 59,565 Stanley Electric Co., Ltd. . 700 14,198 Saison Information Studio Alice Co., Ltd. ..... 2,400 20,837 Systems Co., Ltd. ........ 6,000 40,477 Sugimoto & Co., Ltd. ....... 1,800 15,214 Sankyo Seiko Co., Ltd. ..... 15,200 38,372 Sumikin Bussan Corp. ....... 9,000 17,231 Sankyo-Tateyama Holdings, Sumitomo Bakelite Co., Inc.* .................... 89,000 120,580 Ltd. ..................... 9,000 44,449 Sanoyas Hishino Meisho Sumitomo Chemical Co., Corp ..................... 2,100 5,762 Ltd. ..................... 29,000 127,235 Sanshin Electronics Co., Sumitomo Corp. ............. 56,800 578,374 Ltd. ..................... 2,600 17,850 Sumitomo Electric Sapporo Hokuyo Holdings, Industries, Ltd. ......... 31,200 388,620 Inc ...................... 63,600 230,841 Sumitomo Forestry Co., Sato Shoji Corp. ........... 4,800 23,939 Ltd. ..................... 6,000 45,268 Satori Electric Co., Ltd. .. 2,900 17,253 Sumitomo Metal Industries, Sazaby League, Ltd. ........ 800 9,450 Ltd. ..................... 6,000 16,128 Sega Sammy Holdings, Inc. .. 2,700 32,310 Sumitomo Metal Mining Seibu Electric Industry Co., Co., Ltd. ................ 17,000 250,876 Ltd. ..................... 2,000 7,564 Sumitomo Mitsui Financial Seika Corp. ................ 19,000 40,576 Group, Inc. .............. 11,001 315,675 Seino Holdings Corp. ....... 16,000 101,559 Sumitomo Realty & Sekisui Chemical Co., Development Co., Ltd. .... 2,500 47,193 Ltd. ..................... 10,000 62,208 Sun Wave Corp. ............. 3,000 9,614 Sekisui House, Ltd. ........ 18,000 163,408 Suzuki Motor Corp. ......... 7,434 183,076 Seria Co., Ltd. ............ 8 10,193 SystemPro Co., Ltd. ........ 79 35,860 Shimizu Corp. .............. 14,000 50,285 T&D Holdings Inc. .......... 2,750 56,554 Shin-Etsu Chemical Co., Tachibana Eletech Co., Ltd. ..................... 333 18,800 Ltd. ..................... 4,900 35,233 Shinko Electric Industries Taihei Kogyo Co., Ltd. ..... 10,000 41,939 Co. Ltd. ................. 6,300 91,706 Taiheiyo Cement Corp.* ..... 25,000 28,519 Shinko Securities Co., Taiho Kogyo Co., Ltd. ...... 15,400 108,618 Ltd. ..................... 13,000 39,337 Taikisha, Ltd. ............. 3,276 44,000 Shinsei Bank, Ltd.* ........ 6,000 6,536 Taisei Corp. ............... 42,000 72,063 Shiroki Corp.* ............. 14,000 27,419 Taiyo Electric Co., Ltd. ... 1,200 7,918 Shiseido Co., Ltd. ......... 1,000 19,219 Taiyo Nippon Sanso Corp. ... 3,000 31,928 Showa Denko KK ............. 22,000 43,813 Takashimaya Co., Ltd. ...... 6,000 38,230 Sinanen Co., Ltd. .......... 5,000 20,803 Takeda Pharmaceutical Co., SMC Corp. .................. 100 11,418 Ltd. ..................... 12,889 531,038 Soft99 Corp. ............... 3,300 17,905 TDK Corp. - ADR ............ 2,000 122,300 Sojitz Corp. ............... 54,400 102,929 Teijin, Ltd. ............... 36,000 116,310 Soken Chemical & Engineering Terumo Corp. ............... 800 48,215 Co., Ltd. ................ 1,600 22,843 The 77 Bank, Ltd. .......... 14,000 74,486 Sompo Japan Insurance, The Bank of Kyoto, Ltd. .... 10,000 80,826 Inc ...................... 39,000 251,448 The Bank of Yokohama, Sony Corp. ................. 67,202 1,953,663 Ltd. ..................... 70,000 319,159 Sony Corp. - ADR ........... 1,500 43,500 The Chiba Bank, Ltd. ....... 9,000 53,830 The accompanying notes are an integral part of the financial statements. 88
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ JAPAN -- (CONTINUED) JAPAN -- (CONTINUED) The Daishi Bank, Ltd. ...... 12,000 $ 40,094 Tomoe Engineering Co., The Gunma Bank, Ltd. ....... 12,000 61,372 Ltd. ..................... 1,500 $ 20,139 The Hachijuni Bank, Ltd. ... 25,000 145,890 Tomoku Co., Ltd. ........... 20,000 43,641 The Higo Bank, Ltd. ........ 8,000 44,576 Toppan Printing Co., Ltd. .. 32,000 260,547 The Hokkoku Bank, Ltd. ..... 7,000 25,050 Torii Pharmaceutical Co., The Hyakugo Bank, Ltd. ..... 8,000 35,387 Ltd. ..................... 3,300 62,569 The Iyo Bank, Ltd. ......... 4,000 32,541 Toshiba Corp.* ............. 29,000 160,917 The Japan Steel Works, Tosoh Corp. ................ 30,000 82,851 Ltd. ..................... 553 7,051 Toyo Seikan Kaisha, Ltd. ... 5,400 82,263 The Joyo Bank, Ltd. ........ 18,000 72,332 Toyo Wharf & Warehouse Co., The Juroku Bank, Ltd. ...... 12,000 43,819 Ltd. ..................... 9,000 16,178 The Kansai Electric Power Toyoda Gosei Co., Ltd. ..... 1,300 39,382 Co. Inc. ................. 9,400 212,124 Toyota Auto Body Co., The Nishi-Nippon City Bank, Ltd. ..................... 1,400 26,493 Ltd. ..................... 28,000 68,562 Toyota Boshoku Corp. ....... 3,930 87,746 The San-In Godo Bank, Toyota Motor Corp. ......... 34,958 1,473,849 Ltd. ..................... 5,000 38,951 Toyota Tsusho Corp. ........ 4,700 69,548 The Shiga Bank, Ltd. ....... 8,000 45,203 Tsurumi Manufacturing Co., The Shizuoka Bank, Ltd. .... 8,000 69,636 Ltd. ..................... 1,000 7,483 The Sumitomo Trust & Unicharm Corp. ............. 700 65,622 Banking Co., Ltd. ........ 12,000 58,920 Universe Co., Ltd. ......... 7,900 102,571 The Suruga Bank, Ltd. ...... 5,000 43,571 UNY Co., Ltd. .............. 7,400 52,184 The Toho Bank, Ltd. ........ 7,000 21,174 Usen Corp.* ................ 11,186 6,223 TKC ........................ 2,700 51,232 VITAL KSK HOLDINGS, Inc.* .. 5,000 29,517 Toda Corp. ................. 11,000 35,254 Wellnet Corp. .............. 12 7,999 Toenec Corp. ............... 7,000 39,921 West Japan Railway Co. ..... 44 147,515 Toho Gas Co., Ltd. ......... 5,000 26,567 Wowow, Inc. ................ 30 54,400 Tohokushinsha Film Corp. ... 1,800 9,228 Yachiyo Industry Co., Token Corp. ................ 5,840 131,074 Ltd. ..................... 1,700 12,820 Tokio Marine Holdings, Yamaguchi Financial Group, Inc ...................... 10,000 272,889 Inc ...................... 8,000 74,260 Tokuyama Corp. ............. 3,000 16,774 Yamaha Corp. ............... 3,100 37,350 Tokyo Electric Power Co., Yamaha Motor Co., Ltd.* .... 6,500 82,206 Inc ...................... 22,100 554,670 Yamato Holdings Co., Ltd. .. 21,000 292,318 Tokyo Electron, Ltd. ....... 1,900 121,956 Yamato Kogyo Co., Ltd. ..... 2,500 81,737 Tokyo Gas Co., Ltd. ........ 29,000 115,756 Yokogawa Electric Corp. .... 2,400 21,195 Tokyo Rakutenchi Co., Yondenko Corp. ............. 4,000 21,037 Ltd. ..................... 8,000 32,873 Yuraku Real Estate Co., Tokyo Steel Manufacturing Ltd. ..................... 6,000 19,031 Co., Ltd. ................ 4,500 50,659 Yurtec Corp. ............... 6,000 32,011 Tokyo Tatemono Co., Ltd. ... 33,000 126,941 ------------ Tokyo Tekko Co., Ltd. ...... 7,000 20,349 TOTAL JAPAN .............................. 45,713,579 Tokyu Land Corp. ........... 21,000 78,007 ------------ Tomen Devices Corp. ........ 700 11,754 JORDAN -- 0.2% Tomen Electronics Corp. .... 2,000 19,419 Arab Bank PLC .............. 22,005 376,349 Arab Potash Co. ............ 2,100 107,509 The accompanying notes are an integral part of the financial statements. 89
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ JORDAN -- (CONTINUED) LEBANON -- 0.0% Capital Bank of Jordan* .... 18,700 $ 41,218 Solidere - GDR ............. 9,400 $ 230,300 Jordan Petroleum ------------ Refinery Co .............. 1,380 13,222 TOTAL LEBANON ............................ 230,300 Jordan Phosphate Mines ..... 1,600 40,526 ------------ Jordan Steel ............... 5,259 17,715 LITHUANIA -- 0.1% Jordanian Electric Power Apranga PVA*(1) ............ 137,400 156,975 Co ....................... 17,117 100,337 Invalda PVA* ............... 17,284 13,214 Lafarge Jordan Cement ...... 3,000 30,035 Lietuvos Energija*(1) ...... 17,374 17,024 Middle East Lifosa PVA* ................ 4,400 50,888 Complex*(1) .............. 3,860 8,034 Panevezio Statybos Taameer Jordan Trestas .................. 16,900 26,558 Holdings PSC* ............ 12,900 8,526 Pieno Zvaigzdes ............ 10,687 12,976 United Arab Investors* ..... 17,000 10,360 Rytu Skirstomieji ------------ Tinklai* ................. 26,729 20,274 TOTAL JORDAN ............................. 753,831 Sanitas* ................... 9,500 37,471 ------------ Siauliu Bankas* ............ 30,912 14,421 KAZAKHSTAN -- 0.1% Ukio Bankas* ............... 252,062 111,277 KazMunaiGas ------------ Exploration TOTAL LITHUANIA .......................... 461,078 Production GDR ........... 12,500 311,250 ------------ ------------ LUXEMBOURG -- 0.5% TOTAL KAZAKHSTAN ......................... 311,250 ArcelorMittal (London ------------ Exchange) ................ 9,858 450,572 KENYA -- 0.2% ArcelorMittal (New York Athi River Mining, Ltd. .... 30,000 43,632 Exchange) ................ 30,100 1,377,075 Bamburi Cement Co., Evraz Group SA GDR - Ltd.(1) .................. 23,000 47,297 Registered Shares* ....... 9,335 263,714 Barclays Bank of Kenya, SES SA ..................... 6,178 139,173 Ltd. ..................... 48,400 28,715 Tenaris SA ................. 944 20,344 Centum Investment Co., Ternium SA - ADR* .......... 8,745 309,748 Ltd.* .................... 102,300 15,173 ------------ East African Breweries, TOTAL LUXEMBOURG ......................... 2,560,626 Ltd. ..................... 87,480 166,718 ------------ Equity Bank, Ltd. .......... 331,000 62,622 MALAYSIA -- 0.7% Kenya Airways, Ltd.(1) ..... 195,900 92,333 Alliance Financial Group Kenya Commercial Bank, Bhd ...................... 28,800 22,675 Ltd. ..................... 332,800 90,210 Astro All Asia Networks Kenya Electricity PLC ...................... 23,200 20,255 Generating Co., Ltd. ..... 268,600 45,806 Batu Kawan Bhd ............. 12,600 37,768 Mumias Sugar Co., Ltd. ..... 238,200 21,512 British American Nation Media Group ......... 24,200 37,599 Tobacco Bhd .............. 6,700 83,630 Safaricom, Ltd. ............ 2,918,600 174,439 Bumiputra-Commerce Standard Chartered Holdings Bhd ............. 18,800 70,351 Bank Kenya, Ltd. ........... 9,200 19,530 Bursa Malaysia Bhd ......... 14,500 33,657 ------------ Dialog Group Bhd ........... 85,170 32,615 TOTAL KENYA .............................. 845,586 Digi.com Bhd ............... 5,000 32,051 ------------ Eastern & Oriental Bhd* .... 15,700 4,761 LATVIA -- 0.0% EON Capital Bhd ............ 96,400 192,104 Latvian Shipping Co.*(1) ... 91,206 73,732 Genting Bhd ................ 156,700 334,003 ------------ Hong Leong Bank Bhd ........ 16,400 38,857 TOTAL LATVIA ............................. 73,732 IJM Corp. Bhd .............. 61,460 80,181 ------------ The accompanying notes are an integral part of the financial statements. 90
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ MALAYSIA -- (CONTINUED) MALAYSIA -- (CONTINUED) IOI Corp. Bhd .............. 32,480 $ 51,719 YTL Power International KLCC Property Bhd ...................... 113,816 $ 74,405 Holdings Bhd ............. 54,800 54,910 Zelan Bhd* ................. 17,600 3,471 KNM Group Bhd .............. 108,300 24,129 ------------ Kuala Lumpur Kepong TOTAL MALAYSIA ........................... 3,394,642 Bhd ...................... 22,300 107,233 ------------ Kulim Malaysia Bhd ......... 24,400 53,660 MAURITIUS -- 0.2% Lion Industries Corp. Ireland Blyth, Ltd.(1) ..... 18,300 24,479 Bhd ...................... 88,800 35,222 Mauritius Commercial Malayan Banking Bhd ........ 183,590 366,673 Bank ..................... 77,100 355,191 Malaysian Airline Mauritius Development System Bhd* .............. 64,500 51,065 Investment Trust Co., Malaysian Resources Ltd.(1) .................. 221,000 33,496 Corp. Bhd* ............... 55,800 22,166 Naiade Resorts, Ltd. ....... 7,000 8,303 MISC Bhd ................... 32,000 78,487 New Mauritius Hotels, MMC Corp. Bhd .............. 90,800 64,205 Ltd. ..................... 18,900 83,143 Muhibbah Engineering Rogers & Co., Ltd.(1) ....... 7,100 69,895 M Bhd .................... 68,300 19,822 State Bank of Mauritius, Multi-Purpose Holdings Ltd. ..................... 74,300 195,633 Bhd ...................... 94,600 51,511 Sun Resorts, Ltd. - Pelikan International Class A .................. 24,969 56,768 Corp. Bhd ................ 20,700 8,287 ------------ Petronas Dagangan Bhd ...... 17,900 45,411 TOTAL MAURITIUS ............. 826,908 PPB Group Bhd .............. 33,700 156,675 ------------ Proton Holdings Bhd* ....... 102,500 116,467 MEXICO -- 2.0% Public Bank Bhd ............ 28,285 93,266 Alfa SAB de CV - Ranhill Bhd ................ 52,000 12,628 Class A .................. 28,500 179,209 RHB Capital Bhd ............ 21,200 32,718 America Movil SAB de Samling Global Bhd ......... 354,000 30,783 CV - Series L ............ 647,200 1,522,272 SapuraCrest Petroleum Bhd .. 132,200 94,901 America Movil SAB de Scomi Group Bhd ............ 69,500 8,966 CV - Series L ADR ........ 25,435 1,194,936 Shell Refining Co. Axtel SAB de CV* ........... 16,800 15,141 Federation of Malaya Banco Compartamos SA Bhd ...................... 9,800 30,055 de CV .................... 27,000 139,355 Sime Darby Bhd ............. 113,446 296,388 Carso Global Telecom SP Setia Bhd ............... 19,800 22,618 SAB de CV - TA Ann Holdings Bhd ........ 11,000 15,410 Series A1* ............... 14,200 63,304 Tanjong PLC ................ 7,700 37,804 Carso Infraestructura y Telekom Malaysia Bhd ....... 77,100 68,768 Construccion SAB de CV* .. 41,900 25,655 Tenaga Nasional Bhd ........ 39,300 96,143 Cemex SAB de CV* ........... 614,004 727,494 Titan Chemicals Corp. Cemex SAB de CV - ADR* ..... 6,783 80,175 Bhd* ..................... 75,100 26,622 Coca-Cola Femsa SAB TM International Bhd* ...... 9,000 8,003 de CV - Series L ......... 33,300 219,344 UMW Holdings Bhd ........... 15,400 28,528 Consorcio ARA SAB Wah Seong Corp. Bhd ........ 35,625 24,353 de CV* ................... 21,400 14,886 WCT Engineering Bhd ........ 35,466 26,838 Controladora Comercial YTL Corp. Bhd .............. 33,558 71,424 Mexicana SAB de CV* ................... 13,600 11,404 The accompanying notes are an integral part of the financial statements. 91
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ MEXICO -- (CONTINUED) MEXICO -- (CONTINUED) Corp GEO SAB de CV - Impulsora Del Desarrollo Series B* ................ 87,300 $ 231,830 Y El Empleo en Corp Interamericana de America Latina SAB Entretenimiento SAB de CV* ................... 94,900 $ 96,119 de CV - Series B* ........ 18,679 9,638 Industrias CH SAB de Corp Moctezuma, SAB CV - Series B* ........... 7,500 26,343 de CV .................... 20,900 47,928 Industrias Penoles SAB Desarrolladora Homex SAB de de CV .................... 5,150 110,622 CV - ADR* ................ 3,893 130,883 Kimberly-Clark de Desarrolladora Homex Mexico SAB de CV - SAB de CV* ............... 9,200 51,619 Series A ................. 14,000 62,680 Empresas ICA SAB Mexichem SAB de CV ......... 25,592 48,927 de CV* ................... 47,700 111,210 Organizacion Soriana Fomento Economico SAB de CV - Mexicano SAB de CV, Series B.....* ........... 10,800 26,955 ADR ...................... 6,115 292,786 Promotora Y Operadora Fomento Economico de Infraestructura SAB Mexicano, SAB de CV* ................... 36,900 82,646 de CV .................... 75,300 361,247 Telefonos de Mexico Grupo Aeroportuario del SAB de CV ................ 181,500 151,227 Centro Norte, SAB Telmex Internacional de CV .................... 17,800 29,472 SAB de CV - Class L ...... 125,300 111,105 Grupo Aeroportuario del TV Azteca SAB de CV ........ 38,700 20,945 Pacifico, SAB de CV - Urbi Desarrollos Urbanos Class B .................. 14,700 45,857 SAB de CV* ............... 22,900 51,640 Grupo Aeroportuario del Wal-Mart de Mexico Sureste, SAB de CV - SAB de CV - Series V ..... 146,500 652,879 Class B .................. 7,500 38,865 ------------ Grupo Bimbo SAB de CV - TOTAL MEXICO ............................. 9,426,466 Series A ................. 9,900 64,476 ------------ Grupo Carso SAB de MOROCCO -- 0.3% CV - Series A1 ........... 34,000 103,986 Attijariwafa Bank .......... 4,709 161,593 Grupo Elektra SAB Banque Centrale de CV .................... 1,800 86,822 Populaire ................ 590 18,157 Grupo Financiero Banorte Banque Marocaine du SAB de CV - Commerce et de Series O ................. 155,760 561,746 l'Industrie .............. 320 37,591 Grupo Financiero Banque Marocaine du Inbursa SAB de CV - Commerce Exterieur ....... 5,670 190,565 Series O ................. 75,000 221,297 Brasseries Maroc ........... 171 73,383 Grupo Mexico SAB de Ciments du Maroc ........... 250 59,612 CV - Series B ............ 414,073 945,133 Compagnie Generale Grupo Modelo SAB de Immobiliere .............. 270 55,785 CV - Series C* ........... 26,537 147,270 Credit Immobilier et Grupo Simec SAB de Hotelier ................. 800 32,050 CV - Series B* ........... 12,500 34,676 Douja Promotion Groupe Grupo Televisa SA, ADR ..... 3,395 70,480 Addoha SA ................ 5,300 69,531 Grupo Televisa SAB ......... 49,026 203,982 Lafarge Ciments ............ 375 67,323 Managem* ................... 600 18,262 The accompanying notes are an integral part of the financial statements. 92
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ MOROCCO -- (CONTINUED) NETHERLANDS -- (CONTINUED) Maroc Telecom .............. 13,200 $ 227,062 STMicroelectronics NV ...... 51,519 $ 476,047 ONA SA ..................... 844 137,514 TNT NV ..................... 3,827 117,579 SAMIR* ..................... 440 30,528 Unilever NV ................ 35,593 1,158,437 Societe Nationale Wavin NV ................... 19,902 49,495 d'Investissement ......... 420 88,143 Wolters Kluwer NV .......... 1,718 37,572 Sonasid .................... 210 51,919 X5 Retail Group NV - GDR* .. 2,700 85,589 ------------ ------------ TOTAL MOROCCO ............................ 1,319,018 TOTAL NETHERLANDS ........................ 16,151,425 ------------ ------------ NETHERLANDS -- 3.4% NEW ZEALAND -- 0.0% Aegon NV* .................. 40,393 258,660 Contact Energy, Ltd.* ...... 6,777 30,170 Akzo Nobel NV .............. 5,306 351,866 Fletcher Building, Ltd. .... 19,041 109,859 Amrest Holdings NV* ........ 1,200 34,232 Restaurant Brands New Amsterdam Commodities NV ... 1,732 13,492 Zealand, Ltd. ............ 11,999 14,627 ASML Holding NV ............ 507 17,310 Telecom Corp. of New Ballast Nedam .............. 600 13,052 Zealand, Ltd. ............ 21,407 38,456 Corio NV ................... 587 39,992 ------------ European Aeronautic Defence TOTAL NEW ZEALAND ........................ 193,112 and Space Co. NV ......... 59,472 1,195,454 ------------ Gamma Holding NV* .......... 1,330 19,959 NIGERIA -- 0.2% Heineken Holding NV ........ 2,275 95,148 Access Bank PLC ............ 272,500 13,956 Heineken NV ................ 4,612 218,948 African Petroleum PLC ...... 61,333 13,807 ING Groep NV - CVA* ........ 158,028 1,521,869 Diamond Bank PLC ........... 294,470 14,576 Koninklijke Ahold NV ....... 2,100 27,822 Ecobank Transnational, Koninklijke Boskalis Inc. ..................... 262,889 26,447 Westminster NV ........... 245 9,432 Fidelity Bank PLC .......... 533,000 8,578 Koninklijke DSM NV ......... 19,975 981,440 First Bank of Nigeria PLC .. 1,247,771 117,266 Koninklijke KPN NV ......... 22,118 375,950 First City Monument Bank Koninklijke Philips PLC* ..................... 279,500 13,426 Electronics NV ........... 24,599 727,129 Flour Mills Nigeria PLC .... 77,990 18,780 Koninklijke Philips Guaranty Trust Bank PLC .... 760,045 78,771 Electronics NV - NY Guinness Nigeria PLC ....... 45,800 38,983 Regs ..................... 10,200 300,288 Intercontinental Bank New World Resources NV - PLC* ..................... 386,600 4,155 Class A* ................. 16,070 141,300 Lafarge Cement WAPCO Nigeria QIAGEN NV* ................. 1,626 36,618 PLC ...................... 142,000 28,630 Randstad Holdings NV* ...... 1,718 85,483 Nestle Foods Nigeria PLC ... 26,500 42,431 Reed Elsevier NV ........... 5,572 68,365 Nigerian Breweries PLC ..... 207,400 73,541 Royal Dutch Shell PLC - Oando PLC .................. 42,240 26,704 ADR ...................... 49,650 2,886,154 Oceanic Bank International Royal Dutch Shell PLC - PLC* ..................... 399,300 4,514 Class A .................. 126,504 3,816,765 PlatinumHabib Bank PLC* .... 199,600 1,768 Royal Dutch Shell PLC - Skye Bank PLC* ............. 1,315,000 48,683 Class B .................. 32,960 959,900 SBM Offshore NV ............ 1,533 30,078 The accompanying notes are an integral part of the financial statements. 93
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ NIGERIA -- (CONTINUED) PAKISTAN -- 0.2% UAC of Nigeria PLC ......... 99,400 $ 24,524 Engro Chemical Pakistan, Union Bank Nigeria PLC* .... 214,200 8,597 Ltd ...................... 23,900 $ 51,944 United Bank For Africa Fauji Fertilizer Co., PLC* ..................... 859,562 62,096 Ltd. ..................... 31,350 38,267 Zenith Bank, Ltd.* ......... 401,100 36,690 HUB Power Co. .............. 151,500 55,840 ------------ Jahangir Siddiqui & Co., TOTAL NIGERIA ............................ 706,923 Ltd. ..................... 142,300 50,744 ------------ Lucky Cement, Ltd. ......... 51,000 40,139 NORWAY -- 0.5% MCB Bank Ltd. .............. 45,000 117,234 Blom ASA* .................. 500 1,135 National Bank of Pakistan .. 51,480 45,403 DnB NOR ASA* ............... 24,564 265,187 Nishat Mills, Ltd. ......... 121,000 100,302 Norsk Hydro ASA* ........... 37,085 311,530 Oil & Gas Development Co., Norske Skogindustrier Ltd. ..................... 64,900 85,131 ASA* ..................... 43,853 72,674 Pakistan Petroleum, Ltd. ... 25,920 58,277 Orkla ASA .................. 25,979 254,876 Pakistan State Oil Co., Sparebank 1 SMN ............ 480 4,451 Ltd. ..................... 11,700 41,341 StatoilHydro ASA ........... 44,637 1,113,233 Pakistan Telecommunication Storebrand ASA* ............ 14,783 100,609 Co., Ltd. ................ 135,000 28,257 Telenor ASA* ............... 22,762 317,979 United Bank, Ltd. .......... 90,000 62,384 Veidekke ASA ............... 200 1,712 ------------ Yara International ASA ..... 2,210 100,103 TOTAL PAKISTAN ........................... 775,263 ------------ ------------ TOTAL NORWAY ............................. 2,543,489 PERU -- 0.3% ------------ Alicorp SA(1) .............. 102,800 97,854 OMAN -- 0.2% Austral Group SA* .......... 425,900 41,278 Bank Dhofar SAOG ........... 27,170 51,585 Banco Continental .......... 31,394 98,345 Bank Muscat SAOG ........... 47,300 100,007 Cia de Minas Buenaventura Dhofar International SA - ADR ................. 6,700 224,249 Development & Investment Cia Minera Milpo SA ........ 26,516 71,591 Holding Co. SAOG ......... 8,500 8,922 Corp Aceros Arequipa Galfar Engineering & SA*(1) ................... 24,050 16,816 Contracting SAOG ......... 31,400 47,142 Credicorp, Ltd. ............ 1,900 145,141 National Bank of Oman, Ferreyros SA(1) ............ 120,093 109,742 Ltd ...................... 48,170 40,062 Minsur SA* ................. 35,553 81,837 Oman Cables Industry ....... 12,100 45,703 Sociedad Minera Cerro Verde Oman Cement Co. ............ 25,000 48,327 SA ....................... 1,400 32,620 Oman Flour Mills ........... 34,000 56,292 Sociedad Minera el Brocal Oman International Bank .... 75,900 58,379 SA ....................... 5,700 85,806 Oman National Investment Southern Copper Corp. ...... 9,200 302,772 Corp. Holdings* .......... 16,900 22,358 ------------ Oman Oil Marketing Co. ..... 13,300 31,821 TOTAL PERU ............................... 1,308,051 Oman Telecommunications ------------ Co ....................... 44,700 150,722 PHILIPPINES -- 0.3% Renaissance Services Co. ... Aboitiz Equity Ventures, SAOG* .................... 35,992 71,171 Inc.(1) .................. 1,086,900 211,567 ------------ Atlas Consolidated Mining & TOTAL OMAN ............................... 732,491 Development* ............. 330,000 64,709 ------------ The accompanying notes are an integral part of the financial statements. 94
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ PHILIPPINES -- (CONTINUED) POLAND -- (CONTINUED) Ayala Land, Inc. ........... 285,100 $ 68,901 KGHM Polaksa Miedz SA ...... 22,835 $ 841,770 Banco De Oro Unibank, LPP SA* .................... 90 49,923 Inc. ..................... 52,400 44,121 Mostalzab SA* .............. 17,000 23,394 Bank of the Philippine Mostostal-Warszawa SA* ..... 2,300 48,785 Islands .................. 55,580 57,405 Multimedia Polska SA* ...... 19,300 47,000 Energy Development Corp. ... 733,750 74,186 Netia SA* .................. 21,500 36,673 International Container Term Orbis SA* .................. 2,900 44,879 Services, Inc. ........... 80,800 39,103 PBG SA* .................... 1,090 77,085 Jollibee Foods Corp. ....... 47,600 56,394 Polimex Mostostal SA ....... 51,700 71,200 Manila Electric Co. ........ 66,110 291,784 Polish Energy Partners Metropolitan Bank & Trust .. 88,500 85,686 SA* ...................... 4,100 47,071 Philex Mining Corp.* ....... 338,750 116,852 Polnord SA* ................ 1,000 12,102 Philippine Long Distance Polska Grupa Farmaceutyczna Telephone Co. ............ 3,200 180,657 SA* ...................... 1,200 15,570 San Miguel Corp. - Polski Koncern Miesny Duda Class B .................. 125,900 187,702 SA* ...................... 19,100 8,428 SM Prime Holdings, Inc. .... 287,400 60,529 Polski Koncern Naftowy Union Bank of Philippines .. 109,400 87,628 Orlen* ................... 17,850 210,603 ------------ Polskie Gornictwo Naftowe I TOTAL PHILIPPINES ........................ 1,627,224 Gazownictwo SA ........... 50,940 67,219 ------------ Powszechna Kasa Oszczednosci POLAND -- 1.0% Bank Polski SA ........... 57,771 762,159 Agora SA* .................. 8,600 66,874 Przedsiebiorstwo Eksportu I Asseco Poland SA ........... 6,260 137,116 Importu Kopex SA* ........ 3,300 29,774 Bank Handlowy W Warszawie Synthos SA* ................ 99,800 40,229 SA* ...................... 1,500 36,333 Telekomunikacja Polska SA .. 46,720 258,336 Bank Millennium SA* ........ 22,000 36,528 TVN SA ..................... 25,250 125,519 Bank Pekao SA* ............. 12,000 673,755 Vistula Group SA* .......... 12,900 10,171 Bank Zachodni WBK SA* ...... 1,860 122,512 Zaklad Przetworstwa BRE Bank SA* ............... 650 58,646 Hutniczego Stalprodukt Budimex SA ................. 950 24,146 SA ....................... 250 51,617 Cersanit-Krasnystaw SA* .... 9,300 52,977 ------------ ComArch SA* ................ 400 13,190 TOTAL POLAND ............................. 4,510,184 Cyfrowy Polsat SA .......... 13,930 66,019 ------------ Dom Development SA ......... 1,800 27,139 PORTUGAL -- 0.1% Eurocash SA ................ 11,800 64,479 Banco Comercial Portugues Galp Energia SGPS SA - SA - Class R ............. 102,409 123,418 B Shares ................. 1,246 21,522 Banco Espirito Santo SA .... 5,165 33,640 Getin Holding SA* .......... 18,000 55,345 Brisa Auto Estradas de Globe Trade Centre SA* ..... 8,100 72,353 Portugal SA .............. 5,473 56,238 Grupa Kety SA* ............. 450 18,931 Cimpor Cimentos de Portugal Grupa Lotos SA* ............ 2,600 28,664 SGPS SA .................. 4,175 38,375 ING Bank Slaski SA* ........ 200 54,148 Corticeira Amorim SA* ...... 13,603 18,341 The accompanying notes are an integral part of the financial statements. 95
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ PORTUGAL -- (CONTINUED) EDP - Energias de Portugal SA ............... 25,109 $ 111,787 RUSSIA -- 2.6% Portugal Telecom AvtoVAZ* .................... 92,900 $ 45,740 SGPS SA ................... 3,327 40,596 CTC Media, Inc.* ............ 4,400 65,560 ------------ Evraz Group SA - GDR* ....... 1,400 39,122 TOTAL PORTUGAL ............................ 422,395 Fifth Power Generation ------------ Co., OGK-5* ............... 321,200 23,705 QATAR -- 0.3% Gazprom Neft JSC - Aamal Holding* .............. 7,250 70,276 ADR ....................... 600 16,410 Barwa Real Estate Co.* ...... 4,856 43,914 Gazprom OAO - ADR Commercial Bank of (London Exchange) ......... 55,100 1,391,393 Qatar ..................... 3,008 51,021 Gazprom OAO - ADR Doha Bank QSC ............... 5,658 72,807 (New York Exchange) ....... 48,673 1,219,259 First Finance Co. ........... 3,938 24,387 Irkutsk Elek Net* ........... 82,604 4,578 Gulf International Irkutskenergo OJSC* ......... 79,800 37,107 Services OSC .............. 5,000 42,193 JSC Gazprom Neft ............ 8,500 47,175 Industries Qatar ............ 8,430 263,069 KAMAZ* ...................... 31,400 67,055 Masraf Al Rayan ............. 25,900 95,689 LUKOIL - ADR (London Qatar Electricity & Exchange) ................. 10,700 606,337 Water Co. ................. 2,230 61,263 LUKOIL - ADR (New Qatar Fuel Co. .............. 1,900 82,625 York Exchange) ............ 14,123 796,537 Qatar Gas Transport Magnit OAO .................. 2,150 123,755 Co. Nakilat* .............. 20,100 132,439 Mechel - Sponsored ADR ...... 12,786 240,633 Qatar Insurance Co. ......... 1,715 29,250 Miikhaylovsky Gok CNV ....... 56,000 62 Qatar International Mining & Metallurgical Islamic Bank .............. 1,680 21,005 Co., Norilsk Nickel - Qatar Islamic Bank .......... 4,370 93,063 ADR* ...................... 40,811 585,638 Qatar National Bank ......... 3,255 133,121 MMC Norilsk Nickel Qatar Navigation ............ 2,253 39,907 JSC - ADR* ................ 21,000 297,934 Qatar Real Estate Mobile Telesystems Investment Co. ............ 3,864 28,631 OJSC ...................... 25,700 186,839 Qatar Shipping Co. .......... 3,740 33,213 Mobile Telesystems Qatar Telecom Q-Tel OJSC - ADR ................ 6,484 317,003 QSC ....................... 4,873 194,479 NovaTek OAO - GDR ........... 4,490 275,542 ------------ Novolipetsk Steel - TOTAL QATAR ............................... 1,512,352 GDR*(1) ................... 12,754 389,839 ------------ Novorossiysk Sea Trade ROMANIA -- 0.2% Port - GDR ................ 300 3,375 Antibiotice ................. 128,000 27,017 Polyus Gold Co. - ADR ....... 2,400 66,312 Banca Transilvania .......... 300,245 215,094 Rosneft Oil Co. - GDR ....... 120,888 1,031,775 Biofarm Bucuresti* .......... 1,024,687 68,515 Rostelecom - ADR ............ 1,866 51,035 BRD-Groupe Societe Sberbank of Russian Generale .................. 78,200 339,150 Federation ................ 878,701 2,468,271 Rompetrol Rafinare SA* ...... 950,800 19,966 Severstal*(1) ............... 4,300 36,292 SNP Petrom SA* .............. 1,768,000 148,268 Severstal - GDR Transelectrica SA ........... 6,650 30,178 Reg S*(1) ................... 826 6,971 ------------ Severstal RegS GDR* ......... 2,200 20,900 TOTAL ROMANIA ............................. 848,188 Sistema JSFC - GDR* ......... 3,500 73,053 ------------ Surgutneftegaz - ADR ........ 47,500 379,555 The accompanying notes are an integral part of the financial statements. 96
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ RUSSIA -- (CONTINUED) SINGAPORE -- (CONTINUED) Tatneft - ADR* .............. 6,638 $ 181,217 QAF, Ltd. ................... 29,000 $ 10,734 Tatneft - GDR ............... 4,000 115,578 SembCorp Industries, TGK-2* ...................... 665,824 153 Ltd ....................... 33,000 86,230 TMK OAO - GDR* .............. 1,300 23,106 Singapore Airlines, Ltd. .... 31,000 328,320 Unified Energy System Singapore Airport of Russia - GDR* .......... 4,700 493,500 Terminal Services, Uralkali - GDR* ............. 808 16,968 Ltd ....................... 13,630 26,485 Vimpel-Communications - Singapore Exchange, Ltd. .... 3,000 17,665 ADR ....................... 15,638 290,710 Singapore Press Vsmpo-Avisma Corp. .......... 200 12,600 Holdings, Ltd. ............ 29,000 75,494 VTB Bank OJSC - Singapore Registered Shares ......... 15,256 64,686 Telecommunications, Wimm-Bill-Dann Foods Ltd ....................... 93,000 204,843 OJSC - ADR* ............... 7,200 171,576 United Overseas Bank, X5 Retail Group NV - Ltd ....................... 7,000 97,438 GDR* ...................... 900 28,710 United Overseas Land ------------ Group, Ltd. ............... 58,000 167,145 TOTAL RUSSIA .............................. 12,313,566 UOB-Kay Hian Holdings, ------------ Ltd ....................... 10,000 10,717 SINGAPORE -- 0.9% Venture Corp., Ltd. ......... 13,000 81,553 CapitaLand, Ltd. ............ 70,000 207,659 Wilmar International, Ltd ... 16,000 72,752 Chemoil Energy, Ltd. ........ 59,000 23,010 ------------ City Developments, Ltd. ..... 9,000 73,589 TOTAL SINGAPORE ........................... 4,099,522 ComfortDelgro Corp., ------------ Ltd ....................... 7,000 8,142 SLOVENIA -- 0.1% CSE Global, Ltd. ............ 54,000 33,121 Gorenje Velenje* ............ 2,600 45,961 DBS Group Holdings, Krka dd Novo mesto .......... 2,670 244,396 Ltd ....................... 55,000 597,904 Luka Koper* ................. 1,120 38,231 Fraser & Neave, Ltd. ........ 54,000 160,518 Mercator Poslovni Sistem .... 300 65,857 Golden Agri-Resources, Nova Kreditna Banka Ltd.* ..................... 353,040 127,222 Maribor .................. 4,800 78,212 GuocoLeisure, Ltd. .......... 11,000 5,448 Petrol ...................... 110 50,765 Hi-P International, Ltd. .... 126,000 64,795 SAVA ........................ 100 34,364 Ho Bee Investment, Ltd. ..... 68,000 82,931 Telekom Slovenije DD ........ 400 77,150 Hong Leong Finance, ------------ Ltd ....................... 15,000 33,626 TOTAL SLOVENIA ............................ 634,936 Jardine Cycle & Carriage, ------------ Ltd ....................... 46,251 883,065 SOUTH AFRICA -- 1.6% K1 Ventures, Ltd. ........... 373,000 42,477 ABSA Group, Ltd. ............ 19,534 338,767 Keppel Corp., Ltd. .......... 9,000 52,426 Adcorp Holdings, Ltd. ....... 10,600 35,679 Macquarie International Aeci, Ltd. .................. 3,000 25,055 Infrastructure Fund, African Bank Investments, Ltd ....................... 464,000 149,727 Ltd ....................... 11,480 46,206 Neptune Orient Lines, African Rainbow Minerals, Ltd ....................... 41,500 48,437 Ltd ....................... 2,100 49,216 Oversea-Chinese Banking Allied Electronics Corp., Corp., Ltd. ............... 48,029 309,266 Ltd ....................... 4,900 18,177 People's Food Holdings, Anglo Platinum, Ltd.* ....... 900 96,095 Ltd ....................... 38,000 16,783 AngloGold Ashanti, Ltd. ..... 3,643 147,566 The accompanying notes are an integral part of the financial statements. 97
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ SOUTH AFRICA -- (CONTINUED) SOUTH AFRICA -- (CONTINUED) ArcelorMittal South Reunert, Ltd. ............... 6,700 $ 52,781 Africa, Ltd. .............. 2,610 $ 36,165 RMB Holdings, Ltd. .......... 18,000 71,865 Aspen Pharmacare SA Corporate Real Estate Holdings, Ltd.* ........... 25,203 250,934 Fund ...................... 99,600 35,087 Astral Foods, Ltd. .......... 1,200 16,551 Sanlam, Ltd. ................ 138,712 426,588 Aveng, Ltd. ................. 19,000 102,362 Sappi, Ltd.* ................ 13,300 63,625 AVI, Ltd. ................... 12,300 34,949 Sasol, Ltd. ................. 8,800 352,650 Barloworld, Ltd. ............ 7,400 45,090 Shoprite Holdings, Ltd. ..... 12,600 110,779 Bidvest Group, Ltd. ......... 12,625 220,097 Standard Bank Group, DataTec, Ltd. ............... 18,700 67,825 Ltd ....................... 16,400 225,256 Discovery Holdings, Ltd. .... 7,999 34,604 Steinhoff International Eqstra Holdings, Ltd.* ...... 9,300 8,281 Holdings, Ltd.* ........... 148,660 416,473 Exxaro Resources, Ltd. ...... 3,700 52,081 Sun International, Ltd.* .... 4,500 57,754 FirstRand, Ltd. ............. 59,000 145,993 Telkom SA, Ltd. ............. 10,100 51,069 Foschini, Ltd. .............. 5,700 46,472 The Spar Group, Ltd. ........ 7,200 69,208 Fountainhead Property Tiger Brands, Ltd. .......... 3,800 87,769 Trust ..................... 18,100 15,372 Tongaat Hulett, Ltd. ........ 6,316 84,430 Gold Fields, Ltd. ........... 10,200 133,944 Truworths International, Grindrod, Ltd. .............. 12,600 30,302 Ltd ....................... 11,700 68,763 Group Five, Ltd. ............ 4,500 23,361 Wilson Bayly Growthpoint Properties, Holmes-Ovcon, Ltd. ........ 2,800 40,681 Ltd ....................... 36,400 69,132 Woolworths Holdings, Harmony Gold Mining Ltd ....................... 30,600 73,625 Co., Ltd. ................. 4,800 48,726 ------------ Impala Platinum TOTAL SOUTH AFRICA ........................ 7,641,342 Holdings, Ltd. ............ 26,082 712,930 ------------ Imperial Holdings, Ltd. ..... 12,694 151,464 SOUTH KOREA -- 3.3% Investec, Ltd. .............. 7,000 50,275 Amorepacific Corp.* ......... 70 56,161 JSE, Ltd. ................... 2,600 21,194 Busan Bank* ................. 25,245 301,295 Kumba Iron Ore, Ltd. ........ 1,400 57,526 Cheil Industries, Inc.* ..... 890 43,110 Liberty Holdings, Ltd. ...... 2,800 26,284 CJ Corp.* ................... 630 33,921 Massmart Holdings, Ltd. ..... 5,100 61,750 Daelim Industrial Co., Medi-Clinic Corp, Ltd. ...... 17,600 61,216 Ltd.* ..................... 5,247 372,917 Mondi, Ltd. ................. 6,100 34,573 Daewoo Engineering & MTN Group, Ltd. ............. 60,756 967,011 Construction Co., Murray & Roberts Ltd.* ..................... 4,364 47,779 Holdings, Ltd. ............ 11,000 68,797 Daewoo International Nampak, Ltd. ................ 11,100 22,608 Corp.* .................... 1,379 39,111 Naspers, Ltd. ............... 8,501 344,036 Daewoo Shipbuilding & Nedbank Group, Ltd. ......... 18,767 315,383 Marine Engineering Netcare, Ltd.* .............. 31,200 58,272 Co., Ltd.* ................ 870 13,045 Northam Platinum, Ltd. ...... 8,000 51,795 Dong-A Pharmaceutical Pick'n Pay Stores, Ltd. ..... 11,500 64,670 Co., Ltd.* ................ 520 57,424 Pretoria Portland Cement Dongkuk Steel Mill Co., Co., Ltd. ................. 4,421 20,703 Ltd.* ..................... 1,010 23,361 Raubex Group, Ltd. .......... 10,200 33,030 Doosan Heavy Industries Remgro, Ltd. ................ 7,500 90,420 and Construction Co., Ltd.* ..................... 430 29,899 The accompanying notes are an integral part of the financial statements. 98
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ SOUTH KOREA -- (CONTINUED) SOUTH KOREA -- (CONTINUED) Doosan Infracore Co., Korea Electric Power Ltd.* ..................... 2,200 $ 30,896 Corp.* .................... 5,000 $ 145,988 GS Engineering & Korea Exchange Bank* ........ 27,730 344,301 Construction Corp.* ....... 690 63,994 Korea Express Co., Ltd.* .... 266 12,946 GS Holdings Corp.* .......... 1,920 55,641 Korea Gas Corp.* ............ 400 16,688 GwangjuShinsegae Co., Korea Line Corp.* ........... 330 11,596 Ltd.* ..................... 200 21,776 Korea Zinc Co., Ltd.* ....... 1,910 333,637 Hana Financial Group, Korean Air Lines Co., Inc.* ..................... 15,900 449,530 Ltd.* ..................... 800 37,637 Hanjin Shipping Co., KT Corp.* ................... 3,831 128,976 Ltd.* ..................... 1,570 26,378 KT&G Corp.* ................. 1,400 77,462 Hankuk Electric Glass LG Chem, Ltd.* .............. 1,659 325,252 Co., Ltd.* ................ 690 16,289 LG Corp.* ................... 14,119 882,160 Hanmi Pharm Co., Ltd.* ...... 331 36,308 LG Display Co., Ltd.* ....... 11,630 393,327 Hanwha Chem Corp.* .......... 18,480 213,438 LG Electronics, Inc. ........ 6,593 687,504 Hanwha Corp.* ............... 1,980 81,109 LG Hausys, Ltd.* ............ 71 7,294 Hite Brewery Co., Ltd.* ..... 170 24,827 LG Household & Health Honam Petrochemical Care, Ltd.* ............... 300 75,075 Corp.* .................... 750 65,967 LG Telecom, Ltd.* ........... 5,860 42,717 Hynix Semiconductor, Lotte Shopping Co., Inc.* ..................... 19,600 389,881 Ltd.* ..................... 1,311 388,367 Hyosung Corp.* .............. 3,210 234,838 Macquarie Korea Hyundai Department Infrastructure Fund ....... 5,769 24,314 Store Co., Ltd.* .......... 430 41,512 Mirae Asset Securities Hyundai Development Co., Ltd. ................. 388 21,626 Co.* ...................... 700 22,673 NHN Corp.* .................. 525 86,796 Hyundai Engineering & OCI Co., Ltd.* .............. 270 50,582 Construction Co., POSCO ....................... 1,554 819,768 Ltd.* ..................... 1,210 73,417 POSCO - ADR ................. 6,350 832,485 Hyundai Heavy S-Oil Corp. ................. 740 34,356 Industries* ............... 320 47,529 Samsung C&T Corp.* .......... 1,000 48,114 Hyundai Merchant Samsung Card Co.* ........... 1,000 49,364 Marine Co., Ltd.* ......... 2,080 47,806 Samsung Electro- Hyundai Mipo Dockyard Mechanics Co., Ltd.* ...... 1,070 98,432 Co., Ltd.* ................ 370 32,669 Samsung Electronics Hyundai Mobis* .............. 700 102,607 Co., Ltd. ................. 3,874 2,657,272 Hyundai Motor Co.* .......... 6,337 656,139 Samsung Engineering Hyundai Securities Co. ...... 4,630 58,630 Co., Ltd.* ................ 1,030 95,740 Hyundai Steel Co.* .......... 750 55,712 Samsung Fire & Marine Industrial Bank of Insurance Co., Ltd. ....... 780 133,550 Korea* .................... 22,070 264,499 Samsung Heavy KB Financial Group, Industries Co., Ltd.* ..... 1,680 34,842 Inc.* ..................... 6,251 318,394 Samsung SDI Co., Ltd.* ...... 670 85,338 KB Financial Group, Samsung Securities Co., Inc. - ADR* ............... 1,293 65,749 Ltd ....................... 540 29,242 KCC Corp. ................... 120 38,199 Shinhan Financial Group Kia Motors Corp.* ........... 14,210 244,064 Co., Ltd.* ................ 9,790 362,373 Kolon Industries, Inc.* ..... 2,130 78,378 The accompanying notes are an integral part of the financial statements. 99
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ SOUTH KOREA -- (CONTINUED) SWEDEN -- (CONTINUED) Shinsegae Co., Ltd.* ........ 150 $ 69,303 Atlas Copco AB - SK Energy Co., Ltd.* ........ 800 80,398 Class A ................... 6,294 $ 92,521 SK Holdings Co., Ltd.* ...... 320 24,426 Autoliv, Inc. ............... 562 24,559 SK Telecom Co., Ltd. ........ 1,162 169,662 Bankas Snoras AB* ........... 30,780 12,788 STX Offshore & Bilia AB* ................... 2,569 24,983 Shipbuilding Co., Boliden AB .................. 2,644 33,881 Ltd.* ..................... 1,560 16,557 Electrolux AB - Tong Yang Securities, Series B* ................. 44,549 1,046,862 Inc ....................... 5,400 55,304 Getinge AB - Class B ........ 2,137 40,842 Woongjin Coway Co., Hennes & Mauritz AB - Ltd.* ..................... 1,510 49,951 Class B ................... 2,516 139,479 Woori Finance Holdings Holmen AB - Class B ......... 7,812 199,027 Co., Ltd.* ................ 52,130 617,168 Industrial & Financial Woori Investment & Systems - Class B ......... 5,400 51,127 Securities Co., Ltd. ...... 1,600 22,801 Investor AB - Class B ....... 35,262 653,132 ------------ Micronic Laser Systems TOTAL SOUTH KOREA ......................... 15,357,563 AB* ....................... 24,945 49,623 ------------ Nordea Bank AB .............. 46,144 467,531 SPAIN -- 1.8% Sandvik AB .................. 12,968 156,160 Abertis Infraestructuras Scania AB - Class B ......... 2,786 35,979 SA ........................ 666 15,058 Skandinaviska Enskilda Acciona SA .................. 1,699 222,073 Banken AB* ................ 16,949 104,777 Banco Bilbao Vizcaya Skanska AB - Class B ........ 14,240 241,625 Argentaria SA ............ 49,627 904,453 SKF AB - Class B ............ 5,893 101,617 Banco de Sabadell SA ........ 41,306 229,441 SSAB AB - Class B ........... 1,865 28,885 Banco de Valencia SA ........ 3,623 27,541 SSAB AB - Class A ........... 6,267 106,438 Banco Popular Espanol Svenska Cellulosa AB - SA ........................ 48,427 355,717 Class B ................... 26,277 350,343 Banco Santander Central Svenska Handelsbanken Hispano SA - ADR .......... 79,625 1,309,035 AB - Class A .............. 11,216 319,541 Banco Santander SA .......... 123,309 2,037,638 Swedbank AB Criteria Caixacorp SA ....... 25,583 121,174 (ForeningsSparbanken Ferrovial SA ................ 4,040 47,714 AB) - Class A* ............ 4,878 48,026 Gas Natural SDG SA .......... 1,663 35,847 Swedish Match AB ............ 14,021 306,544 Iberdrola Renovables SA ..... 24,403 116,207 Tele2 AB - Class B .......... 10,517 161,554 Iberdrola SA ................ 26,216 251,221 Telefonaktiebolaget LM Industria de Diseno Ericsson - ADR ............ 34,600 317,974 Textil SA ................... 1,252 78,190 Telefonaktiebolaget LM Repsol YPF SA ............... 8,359 224,310 Ericsson - Class B ........ 58,768 541,020 Repsol YPF SA - ADR ......... 18,295 487,745 TeliaSonera AB .............. 42,384 306,334 Sacyr Vallehermoso SA* ...... 1,408 16,159 Volvo AB - Class B .......... 15,738 134,985 Telefonica SA ............... 66,220 1,853,433 ------------ ------------ TOTAL SWEDEN .............................. 6,218,222 TOTAL SPAIN ............................... 8,332,956 ------------ ------------ SWITZERLAND -- 3.8% SWEDEN -- 1.3% ABB, Ltd.* .................. 48,443 933,464 Acando AB ................... 35,171 67,030 Adecco SA ................... 1,668 92,015 Alfa Laval AB ............... 2,364 32,691 Assa Abloy AB ............... 1,056 20,344 The accompanying notes are an integral part of the financial statements. 100
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ SWITZERLAND -- (CONTINUED) TAIWAN -- 2.6% Advanced Digital Acer, Inc. .................. 34,855 $ 104,590 Broadcast Holdings Advanced Semiconductor SA* ....................... 421 $ 20,705 Engineering, Inc. ......... 64,961 58,309 Aryzta AG ................... 911 33,929 Asia Cement Corp. ........... 38,213 41,185 Baloise Holding AG .......... 3,673 304,959 Asia Optical Co., Inc. ...... 11,221 24,944 Banque Cantonale Asustek Computer, Inc. ...... 42,084 81,057 Vaudoise .................. 90 35,643 AU Optronics Corp. .......... 281,098 336,755 Bossard Holding AG .......... 182 10,227 AU Optronics Corp. Charles Voegele Holding ADR ....................... 2,385 28,596 AG* ....................... 1,600 56,995 Capital Securities Corp.* ... 79,200 48,849 Coltene Holding AG .......... 796 41,911 Catcher Technology Co., Compagnie Financiere Ltd ....................... 9,438 26,251 Richemont SA .............. 25,895 870,768 Cathay Financial Holding Credit Suisse Group - Co., Ltd.* ................ 355,000 660,926 ADR ....................... 24,400 1,199,504 Cathay Real Estate Credit Suisse Group AG ...... 15,339 759,915 Development Co., Emmi AG ..................... 100 12,373 Ltd.* ..................... 84,000 34,747 Flughafen Zuerich AG ........ 192 57,740 Chang Hwa Commercial Geberit AG .................. 2,254 399,586 Bank ...................... 67,000 31,829 Givaudan SA ................. 148 118,424 Cheng Shin Rubber Holcim, Ltd.* ............... 10,446 811,836 Industry Co., Ltd. ........ 155,940 360,163 Kardex AG* .................. 893 28,876 Chicony Electronics Co., Lindt & Spruengli AG ........ 18 38,646 Ltd ....................... 99,000 238,526 Logitech International China Airlines* ............. 80,004 28,452 SA* ....................... 461 7,996 China Development Lonza Group AG .............. 2,318 163,324 Financial Holding Nestle SA ................... 87,539 4,248,585 Corp.* .................... 188,979 57,740 Nobel Biocare Holding China Motor Corp.* .......... 73,000 51,080 AG ........................ 674 22,589 China Steel Corp. ........... 234,675 241,978 Novartis AG ................. 35,932 1,962,219 Chinatrust Financial Roche Holding AG - Holding Co., Ltd. ......... 157,861 98,136 Genusschein .............. 9,680 1,655,404 Chunghwa Picture Tubes, Schindler Holding AG ........ 2,723 205,391 Ltd.* ..................... 166,000 21,259 Schindler Holding AG ........ 643 49,235 Chunghwa Telecom Co., SGS SA ...................... 10 13,055 Ltd ....................... 118,559 221,116 Swatch Group AG ............. 629 159,213 Chunghwa Telecom Co., Swiss Life Holding AG* ...... 991 126,091 Ltd. - ADR ................ 1,663 30,882 Swiss Reinsurance ........... 7,849 376,004 Compal Electronics, Inc. .... 79,592 109,941 Swisscom AG ................. 260 99,297 D-Link Corp. ................ 36,046 38,019 Swisslog Holding AG - Delta Electronics, Inc. ..... 22,888 72,000 Registered Shares ......... 70,393 59,275 E.Sun Financial Holding Syngenta AG ................. 368 103,926 Co., Ltd.* ................ 310,048 129,163 UBS AG* ..................... 85,878 1,337,311 Epistar Corp. ............... 67,099 251,069 Walter Meire AG ............. 12 1,071 Far Eastern Department Zurich Financial Services Stores Co., Ltd. .......... 43,260 49,614 AG .......................... 6,395 1,398,099 Far EasTone ------------ Telecommunications TOTAL SWITZERLAND ......................... 17,815,601 Co., Ltd. ................. 36,000 43,106 ------------ The accompanying notes are an integral part of the financial statements. 101
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ TAIWAN -- (CONTINUED) TAIWAN -- (CONTINUED) First Financial Holding ProMos Technologies, Co., Ltd. ............... 76,760 $ 47,584 Inc.* ................... 114,000 $ 7,699 First Steamship Co., Ltd. .. 22,824 35,830 Qisda Corp.* ............... 69,120 43,558 Formosa Chemicals & Quanta Computer, Inc. ...... 40,571 88,025 Fibre Corp. ............. 66,950 145,154 Realtek Semiconductor Formosa Petrochemical Corp. ................... 8,653 25,548 Corp. ................... 33,990 87,478 Richtek Technology Formosa Plastics Corp. ..... 77,040 162,313 Corp. ................... 27,000 275,089 Foxconn Technology Co., Shin Kong Financial Ltd. .................... 47,000 181,316 Holding Co., Ltd.* ...... 74,319 30,796 Fubon Financial Holding Siliconware Precision Co., Ltd.* .............. 87,000 106,959 Industries Co. .......... 36,000 49,073 Gemtek Technology Simplo Technology Co., Corp. ................... 1,376 2,474 Ltd. .................... 36,300 214,848 HannStar Display Corp.* .... 144,049 37,199 Sincere Navigation ......... 169,000 222,940 High Tech Computer Sino-American Silicon Corp. ................... 7,770 89,018 Products, Inc. .......... 11,741 32,190 HON HAI Precision SinoPac Financial Industry Co., Ltd. ...... 278,707 1,303,419 Holdings Co., Ltd.* ..... 121,000 48,487 Hotai Motor Co., Ltd. ...... 20,000 47,986 Synnex Technology Hua Nan Financial International Corp. ..... 21,780 47,039 Holdings Co., Ltd. ...... 70,390 44,129 Tainan Spinning Co., Huaku Construction Co., Ltd.* ................... 108,000 43,104 Ltd. .................... 48,000 121,827 Taishin Financial Innolux Display Corp. ...... 37,389 55,227 Holdings Co., Ltd.* ..... 82,000 32,155 KGI Securities Co., Ltd. ... 101,000 59,247 Taiwan Cement Corp. ........ 56,560 60,057 KGI Securities Co., Ltd. Taiwan Cooperative Bank .... 80,500 50,487 GDR 144A*@ .............. 11,721 100,097 Taiwan Fertilizer Co., Lien Hwa Industrial Ltd. .................... 16,000 56,971 Corp. ................... 72,918 36,045 Taiwan Kolin Co., Ltd.* .... 141,000 -- Lite-On Technology Taiwan Mobile Co., Ltd. .... 156,527 305,149 Corp. ................... 164,207 246,707 Taiwan Semiconductor MediaTek, Inc. ............. 10,070 174,962 Manufacturing Co., Mega Financial Holding Ltd. .................... 754,697 1,521,072 Co., Ltd. ............... 135,000 77,778 Taiwan Semiconductor Motech Industries, Inc. .... 11,513 54,903 Manufacturing Co., Nan Kang Rubber Tire Ltd. - ADR .............. 15,375 175,890 Co., Ltd.* .............. 46,800 60,863 Tatung Co., Ltd.* .......... 102,000 24,979 Nan Ya Plastics Corp. ...... 93,730 170,358 Tripod Technology Corp. .... 101,270 341,684 Nanya Technology Tung Ho Steel Enterprise Corp.* .................. 38,890 39,646 Corp., .................. 37,476 40,561 Novatek Microelectronics Uni-President Enterprises Corp., Ltd. ............. 89,145 297,773 Corp. ................... 295,399 364,205 POU Chen Corp. ............. 45,252 35,919 Unimicron Technology Powerchip Semiconductor Corp. ................... 37,370 54,124 Corp.* .................. 107,000 13,207 United Microelectronics President Chain Store Corp.* .................. 131,000 70,772 Corp. ................... 36,576 86,884 The accompanying notes are an integral part of the financial statements. 102
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ TAIWAN -- (CONTINUED) THAILAND -- (CONTINUED) United Microelectronics Major Cineplex Group Corp. ADR* .............. 4,434 $ 17,204 PCL ..................... 98,300 $ 25,061 Walsin Lihwa Corp.* ........ 120,000 44,964 Minor International PCL .... 117,450 39,808 Winbond Electronics PTT Aromatics & Corp.* .................. 184,000 56,065 Refining PCL ............ 59,778 45,721 Wintek Corp.* .............. 58,000 51,426 PTT Chemical PCL - Wistron Corp. .............. 27,653 53,549 Foreign ................. 28,200 60,900 WPG Holdings Co., Ltd. ..... 138,000 240,375 PTT Exploration & Yang Ming Marine Production PCL .......... 31,800 140,291 Transport Corp. ......... 83,598 31,654 PTT Exploration & Yuanta Financial Holding Production PCL - Co., Ltd. ............... 100,000 73,170 For Reg ................. 21,400 94,355 Yulon Motor Co., Ltd. ...... 43,640 51,453 PTT PCL .................... 70,700 521,662 Zinwell Corp. .............. 22,435 43,210 Quality House PCL .......... 838,700 66,915 ------------ Ratchaburi Electricity TOTAL TAIWAN .............................. 12,332,156 Generating Holding ------------ PCL ..................... 46,000 48,635 THAILAND -- 0.8% Siam Cement PCL ............ 12,000 85,885 Advanced Info Service Siam City Bank PCL ......... 63,100 55,359 PCL - For Reg ........... 79,400 206,002 Siam City Cement PCL ....... 4,600 32,423 Airports of Thailand PCL ... 56,200 65,741 Siam Commercial Bank Bangkok Bank PCL ........... 56,400 197,443 PCL ..................... 22,000 57,251 Bangkok Dusit Medical Siam Commercial Bank Service PCL ............. 20,600 15,385 PCL - For Reg ........... 33,300 86,646 Bangkok Expressway Siam Makro PCL ............. 18,000 47,240 PCL ..................... 50,500 31,506 Sino Thai Engineering & Banpu PCL .................. 15,600 270,224 Construction PCL* ....... 180,500 33,566 BEC World PCL .............. 76,100 56,151 Thai Airways International Bumrungrad Hospital PCL* .................... 46,000 25,663 PCL ..................... 54,000 47,780 Thai Beverage PCL .......... 344,000 59,989 CalComp Electronics Thai Oil PCL ............... 53,300 68,344 Thailand PCL* ........... 211,500 19,666 Thai Union Frozen Central Pattana PCL ........ 44,600 27,156 Products PCL ............ 48,300 43,823 Charoen Pokphand Foods Thanachart Capital PCL ..... 120,600 79,942 PCL ..................... 382,800 130,891 Thoresen Thai Agencies CP ALL PCL ................. 203,400 151,299 PCL ..................... 8,760 7,160 Delta Electronics Thai TMB Bank PCL* .............. 546,200 20,315 PCL* .................... 52,900 29,512 Total Access Electricity Generating Communication PCL ....... 65,000 72,892 PCL ..................... 15,300 36,254 ------------ Glow Energy PCL* ........... 53,700 53,152 TOTAL THAILAND ............................ 3,697,799 Hana Microelectronics ------------ PCL* .................... 230,900 144,053 TURKEY -- 1.2% IRPC PCL ................... 624,900 82,095 Adana Cimento - Kasikornbank PCL ........... 59,000 153,735 Class A ................. 6,167 21,146 Khon Kaen Sugar Akbank TAS ................. 33,677 214,285 Industry PCL ............ 127,100 57,833 Akcansa Cimento AS ......... 4,900 21,973 Krung Thai Bank PCL ........ 345,500 102,075 Akenerji Electrik Uretim AS ...................... 7,800 73,216 The accompanying notes are an integral part of the financial statements. 103
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ TURKEY -- (CONTINUED) TURKEY -- (CONTINUED) Aksigorta AS ............... 19,400 $ 67,739 Turk Hava Yollari Anonim Alarko Holding AS .......... 12,928 34,579 Ortakligi ............... 21,000 $ 80,394 Anadolu Efes Biracilik Turk Telekomunikasyon ve Malt Sanayii AS ...... 19,263 215,147 AS ...................... 30,747 94,118 Anadolu Efes Biracilik Turkcell Iletisim Hizmet ve Malt Sanayii AS - AS ...................... 37,209 263,911 ADR ..................... 3 7 Turkiye Garanti Bankasi Arcelik AS* ................ 76,660 302,592 AS ...................... 184,101 784,253 Asya Katilim Bankasi Turkiye Halk Bankasi AS .... 50,722 406,002 AS* ..................... 84,198 194,513 Turkiye Is Bankasi ......... 42,871 181,030 Aygaz AS ................... 11,368 43,052 Turkiye Sinai Kalkinma Bim Birlesik Magazalar Bankasi AS* ............. 28,950 35,404 AS ...................... 4,050 188,338 Turkiye Vakiflar Bankasi Cimsa Cimento Sanayi Tao* .................... 137,589 394,706 ve Tica ................. 4,400 22,250 Ulker Biskuvi Sanayi AS .... 8,021 18,969 Dogan Sirketler Grubu Yapi ve Kredi Bankasi Holding AS .............. 127,009 88,225 AS* ..................... 38,178 84,122 Dogan Yayin Holding* ....... 36,433 34,387 Yazicilar Holding AS ....... 13,300 86,090 Dogus Otomotiv Servis ------------ ve Ticaret AS* .......... 6,500 21,172 TOTAL TURKEY .............................. 5,771,977 Eczacibasi Ilac Sanayi ..... 19,500 32,645 ------------ Enka Insaat ve Sanayi AS ... 29,521 136,777 UKRAINE -- 0.0% Eregli Demir ve Celik UkrTelecom - GDR*(1) ....... 75,799 189,071 Fabrikalari TAS* ........ 62,051 188,229 ------------ Ford Otomotiv Sanayi TOTAL UKRAINE ............................. 189,071 AS ...................... 9,100 55,724 ------------ Haci Omer Sabinci UNITED ARAB EMIRATES -- 0.3% Holding AS .............. 134,367 522,959 Aabar Investments Hurriyet Gazetecilik AS* ... 14,172 17,908 PJSC* ................... 76,000 46,852 Ihlas Holding* ............. 53,700 18,388 Abu Dhabi Commercial Is Gayrimenkul Yatirim Bank .................... 60,000 25,040 Ortakligi AS ............ 18,400 20,356 Abu Dhabi National Kardemir Karabuk Demir Hotels .................. 86,800 88,857 Celik Sanayi ve Ticaret Air Arabia ................. 591,400 147,786 AS* ..................... 68,862 29,805 Aldar Properties PJSC ...... 61,000 81,817 KOC Holding AS* ............ 75,215 223,221 Amlak Finance PJSC* ........ 50,900 12,569 Koza Anadolu Metal Dana Gas PJSC* ............. 427,000 109,038 Madencilik AS* .......... 21,000 68,022 DP World, Ltd. ............. 343,400 147,662 Petkim Petrokimya Dubai Financial Market ..... 34,800 17,723 Holding AS* ............. 16,620 81,798 Dubai Investments PJSC ..... 132,732 36,019 Petrol Ofisi AS* ........... 6,494 25,127 Dubai Islamic Bank Sekerbank TAS* ............. 23,875 41,030 PJSC .................... 62,427 39,263 Tofas Turk Otomobil Emaar Properties PJSC* ..... 193,400 201,595 Fabrikasi AS ............ 11,700 37,312 Emirates NBD PJSC .......... 52,030 41,505 Trakya Cam Sanayi AS* ...... 27,861 34,774 First Gulf Bank PJSC ....... 9,400 40,781 Tupras-Turkiye Petrol Gulf Cement Co. ............ 65,000 28,315 Rafine .................. 11,946 237,021 National Bank of Abu Turcas Petrolculuk AS ...... 9,099 29,261 Dhabi PJSC .............. 34,200 116,092 RAK Properties ............. 150,000 23,682 Tabreed* ................... 180,472 39,544 The accompanying notes are an integral part of the financial statements. 104
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ UNITED ARAB EMIRATES -- (CONTINUED) UNITED KINGDOM -- (CONTINUED) Union National Bank/Abu Dangote Sugar Refinery Dhabi ................... 39,600 $ 34,247 PLC ..................... 211,920 $ 21,494 Union Properties PJSC* ..... 65,340 11,970 Dart Group PLC ............. 5,970 4,748 ------------ Delta PLC .................. 87,839 197,562 TOTAL UNITED ARAB EMIRATES .. 1,290,357 Diageo PLC ................. 12,130 211,621 ------------ Drax Group PLC ............. 81,837 545,593 UNITED KINGDOM -- 9.2% DS Smith PLC ............... 33,297 68,103 3i Group PLC ............... 10,555 47,789 easyJet PLC* ............... 7,181 40,730 Amlin PLC .................. 24,016 138,671 Eurasian Natural Anglo American PLC* ........ 6,669 286,610 Resources Corp. ......... 38,241 560,135 Anglo American PLC Fiberweb PLC ............... 23,108 23,437 (London Exchange)* ...... 8,357 361,921 GKN PLC* ................... 6,832 12,796 Anite PLC .................. 15,823 8,178 GlaxoSmithKline PLC ........ 62,599 1,327,465 Antofagasta PLC Hammerson PLC .............. 7,533 51,273 (Johannesburg HFC Bank Ghana, Ltd.* ...... 243,750 74,568 Exchange) ............... 26,537 422,139 Hogg Robinson Group Associated British Foods PLC ..................... 6,272 2,938 PLC ..................... 48,306 640,407 Home Retail Group PLC ...... 33,965 154,047 AstraZeneca PLC ............ 61,296 2,880,738 HSBC Holdings PLC .......... 285,652 3,258,810 Aviva PLC .................. 176,921 1,125,419 HSBC Holdings PLC - BAE Systems PLC ............ 153,970 891,128 ADR ..................... 23,087 1,318,037 Barclays PLC ............... 158,899 700,181 Imperial Tobacco Group BG Group PLC ............... 8,608 155,428 PLC ..................... 34,087 1,075,353 BHP Billiton PLC ........... 36,042 1,149,017 International Power PLC .... 112,335 559,753 BP PLC ..................... 346,320 3,344,121 Invensys PLC ............... 7,598 36,553 BP PLC - ADR ............... 9,532 552,570 Investec PLC ............... 12,752 87,131 Braemar Shipping Investec PLC Services PLC ............ 1,198 8,199 (Johannesburg British Airways PLC* ....... 20,841 62,682 Exchange) ............... 54,557 374,841 British American J Sainsbury PLC ............ 144,158 751,665 Tobacco PLC ............. 14,921 484,385 Kazakhmys PLC* ............. 33,657 712,636 British Land Co. PLC ....... 8,487 65,353 Kingfisher PLC ............. 114,838 422,742 BT Group PLC ............... 80,784 175,934 Land Securities Group Burberry Group PLC ......... 2,781 26,710 PLC ..................... 8,007 88,130 Cadbury PLC ................ 8,083 103,928 Lavendon Group PLC ......... 9,235 3,948 Cape PLC* .................. 1,753 6,378 Legal & General Group Carnival PLC* .............. 1,991 67,830 PLC ..................... 285,910 367,815 Carnival PLC - ADR* ........ 6,900 232,254 Liberty International PLC .. 2,210 18,271 Carphone Warehouse Lloyds Banking Group Group PLC ............... 15,741 47,453 PLC* .................... 527,561 424,464 Centrica PLC ............... 24,148 109,379 Lonmin PLC* ................ 6,344 199,376 Chime Communications Man Group PLC .............. 32,182 158,829 PLC ..................... 13,640 47,797 Marks & Spencer Group Clarkson PLC ............... 2,608 31,058 PLC ..................... 15,560 100,532 Cobham PLC ................. 10,288 41,556 Mondi PLC .................. 3,380 18,134 Colt Telecom Group SA* ..... 16,600 35,248 National Grid PLC .......... 15,184 165,732 Computacenter PLC .......... 13,947 56,168 Next PLC ................... 1,161 38,819 Costain Group PLC .......... 78,324 30,518 The accompanying notes are an integral part of the financial statements. 105
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ UNITED KINGDOM -- (CONTINUED) UNITED STATES -- 0.1% Old Mutual PLC* ............ 264,994 $ 464,056 Gerdau Ameristeel Corp. .... 1,844 $ 15,213 Pearson PLC ................ 4,379 62,786 Gerdau Ameristeel Corp. Pearson PLC - ADR .......... 24,490 351,676 (Toronto Exchange) ...... 6,204 51,668 Prudential PLC ............. 32,157 329,167 Rosneft Oil Co. GDR ........ 34,499 290,482 Reckitt Benckiser Group SPDR Gold Trust* ........... 539 57,840 PLC ..................... 2,036 110,209 ------------ Rexam PLC .................. 37,362 174,664 TOTAL UNITED STATES ...................... 415,203 Rio Tinto PLC .............. 16,111 869,941 ------------ Rolls-Royce Group PLC* ..... 825,678 91,633 VIETNAM -- 0.2% Royal Bank of Scotland Dragon Capital - Vietnam Group PLC* .............. 88,642 41,148 Enterprise Investments, RPC Group PLC .............. 5,700 22,050 Ltd.* ................... 458,445 779,357 RSA Insurance Group ------------ PLC ..................... 76,742 149,093 TOTAL VIETNAM .............. 779,357 SABMiller PLC .............. 10,177 299,143 ------------ Schroders PLC .............. 3,123 66,743 TOTAL COMMON STOCK Segro PLC .................. 8,032 44,552 (Cost $334,871,058) ...................... 386,287,088 Senior PLC ................. 82,070 99,277 ------------ Severn Trent PLC ........... 1,802 31,486 EXCHANGE-TRADED FUNDS -- 13.1% Smiths Group PLC - iShares MSCI EAFE Class B ................. 2,496 40,690 Index Fund .............. 2,600 143,780 Standard Chartered PLC ..... 13,746 347,029 iShares MSCI EAFE Standard Life PLC .......... 51,046 177,301 Small Cap Index Tesco PLC .................. 55,609 383,634 Fund .................... 230,000 8,236,300 The Davis Service Group iShares MSCI India PLC ..................... 25,659 164,600 Index Fund* ............. 54,000 372,060 The Vitec Group PLC ........ 7,179 44,934 iShares MSCI Taiwan Thomas Cook Group Index Fund .............. 70,578 915,397 PLC ..................... 192,190 709,983 MFS International New Travis Perkins PLC* ........ 3,143 43,044 Discovery Fund .......... 1,001,886 18,615,050 TUI Travel PLC ............. 50,930 208,727 Vanguard Emerging United Utilities Group Markets Fund ETF ........ 360,900 14,796,900 PLC ..................... 31,426 251,194 Vanguard International Vedanta Resources PLC ...... 18,495 773,568 Explorer Fund ........... 1,331,423 18,347,006 Vodafone Group PLC ......... 674,782 1,562,598 ------------ Vodafone Group PLC - TOTAL EXCHANGE-TRADED FUNDS ADR ..................... 127,841 2,951,849 (Cost $58,111,165) ....................... 61,426,493 Whitbread PLC .............. 5,203 118,064 ------------ WM Morrison PREFERRED STOCK -- 2.0% Supermarkets PLC ........ 253,358 1,130,389 BRAZIL -- 1.7% Wolseley PLC* .............. 8,173 163,598 AES Tiete SA, WPP PLC .................... 33,443 327,082 11.34% .................. 3,080 35,382 Xstrata PLC* ............... 149,730 2,670,591 Banco Bradesco SA, ------------ 0.59% ................... 49,195 1,027,980 TOTAL UNITED KINGDOM ....................... 43,091,727 Banco Itau Holding ------------ Financeira SA, 0.44% ................... 50,636 1,125,272 Bradespar SA, 0.59% ................... 4,600 101,802 The accompanying notes are an integral part of the financial statements. 106
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ BRAZIL -- (CONTINUED) BRAZIL -- (CONTINUED) Brasil Telecom SA, Petroleo Brasileiro SA, 1.14% ................... 11,831 $ 113,825 1.07% 61,896 $ 1,304,402 Braskem SA - Class A, Tam SA, 0.00%* ............. 1,300 28,531 0.00%* .................. 3,300 26,688 Telecomunicacoes de Centrais Eletricas Sao Paulo SA, Brasileiras SA - 4.46% ................... 900 22,508 Class B, Telemar Norte Leste 6.72% ................... 401 7,306 SA - Class A, Cia Brasileira de 7.43% ................... 1,100 39,306 Distribuicao Grupo Tim Participacoes SA, Pao de Acucar, 2.84% ................... 10,000 29,408 0.64% ................... 3,262 121,824 Ultrapar Participacoes Cia de Bebidas das SA, Americas, 2.73% ................... 2,400 110,433 0.64% ................... 2,507 251,276 Usinas Siderurgicas de Cia Energetica de Minas Gerais SA - Minas Gerais, Class A, 2.93% ................... 3,826 69,444 1.26% ................... 5,192 147,291 Cia Energetica de Vivo Participacoes SA, Sao Paulo, 1.76% ................... 3,071 96,099 0.95% ................... 4,100 56,590 ------------ Cia Vale do Rio Doce - TOTAL BRAZIL ............................. 8,040,079 Class A, ------------ 3.37% ................... 92,719 2,247,411 CHILE -- 0.1% Confab Industrial SA, Embotelladora Andina 3.74% ................... 26,459 77,964 SA - Class B, Eletropaulo Metropolitana 2.42% ................... 12,700 43,472 Eletricidade de Embotelladora Andina Sao Paulo SA, SA, 2.58% ............... 17,190 48,780 5.41% ................... 9,260 183,498 Sociedad Quimica y Fertilizantes Fosfatados Minera de Chile SA B, SA, 3.94% ................... 3,000 113,509 2.48% ................... 4,400 41,700 ------------ Gerdau SA, 0.74% ........... 11,760 196,833 TOTAL CHILE .............................. 205,761 Gol Linhas Aereas ------------ Inteligentes SA, CROATIA -- 0.0% 0.00%* .................. 1,000 14,980 Adris Grupa DD, Investimentos Itau SA, 2.51% ................... 1,219 61,451 0.62% ................... 37,541 255,520 ------------ Lojas Americanas SA, TOTAL CROATIA .............................. 61,451 0.35% ................... 18,230 162,614 ------------ Marcopolo SA, GERMANY -- 0.1% 1.47% ................... 7,900 30,629 Dyckerhoff AG, Metalurgica Gerdau SA, 5.13% ................... 356 21,179 1.49% ................... 3,600 72,207 Fresenius SE AG, Net Servicos de 1.98% ................... 1,820 130,650 Comunicacao SA, Henkel AG & KGaA- 0.00%* .................. 3,000 41,356 Vorzug, 2.28% ................... 1,536 80,660 The accompanying notes are an integral part of the financial statements. 107
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ GERMANY -- (CONTINUED) GHANA -- 0.0% Jungheinrich AG, Standard Chartered Bank 5.91% .................. 4,647 $ 88,416 Ghana Ltd.* ............. 207 $ 145 Porsche Automobil ------------ Holding SE AG, TOTAL GHANA ............................... 145 1.44% .................. 3,088 193,106 ------------ Volkswagen AG, GREECE -- 0.0% 3.74% .................. 1,483 139,887 Alpha Bank A.E.* ........... 951 954 ------------ ------------ TOTAL GERMANY ............................. 653,898 TOTAL GREECE .............................. 954 ------------ ------------ RUSSIA -- 0.1% LITHUANIA -- 0.0% Sberbank of Russian Bankas Snoras AB* .......... 30,780 -- Federation - Class S, ------------ 3.02% .................. 91,150 204,632 TOTAL LITHUANIA ........................... -- Transneft, ------------ 1.54% .................. 25 20,857 MOROCCO -- 0.0% ------------ Douja Promotion Groupe TOTAL RUSSIA .............................. 225,489 Addoha SA* .............. 6,000 78,533 ------------ Lafarge Ciments* ........... 110 52,682 SOUTH KOREA -- 0.0% ------------ Hyundai Motor Co., Ltd., TOTAL MOROCCO ............................. 131,215 3.04% .................. 1,490 54,722 ------------ Samsung Electronics Co., TOTAL RIGHTS Ltd., (Cost $173,070) ......................... 134,885 1.27% .................. 180 81,157 ------------ ------------ CALL WARRANTS -- 1.3% TOTAL SOUTH KOREA .......................... 135,879 Citigroup Global Markets ------------ Holdings, Inc. .......... THAILAND -- 0.0% Al Safwa Group Co., Siam Commercial Bank Exp. 11/16/10* .... 280,000 48,768 PCL, Boubyan 5.25% .................. 16,600 42,819 Petrochemicals, ------------ Exp. 10/06/10* ....... 80,000 113,560 TOTAL THAILAND ............................. 42,819 Gulf Cable and Electrical ------------ Industries Co.* ...... 12,500 70,540 TOTAL PREFERRED STOCK Boubyan Bank K.S.C., (Cost $6,376,154) ....................... 9,365,376 Exp. 10/06/10* ....... 20,000 35,010 ------------ Kuwait Finance House, RIGHTS -- 0.0% Exp. 01/14/10* ........ 37,500 143,693 AUSTRALIA -- 0.0% Kuwait Projects Woodside Petrol* .......... 450 2,060 Co. Holdings, ------------ Exp. 01/14/10* ....... 35,000 58,522 TOTAL AUSTRALIA ........................... 2,060 Mobile Telecommunication ------------ Co., AUSTRIA -- 0.0% Exp. 09/21/10* ....... 77,500 269,969 Erste Group Bank AG* ...... 1,769 -- National Bank of Kuwait, ------------ Exp. 10/15/09* ....... 40,000 153,273 TOTAL AUSTRIA ............................. -- National Industries ------------ Group Holdings, FRANCE -- 0.0% Exp. 01/14/10* ....... 135,000 141,080 AXA SA* ................... 761 511 ------------ TOTAL FRANCE .............................. 511 ------------ The accompanying notes are an integral part of the financial statements. 108
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ CALL WARRANTS -- (CONTINUED) CALL WARRANTS -- (CONTINUED) Citigroup Global Markets Merrill Lynch Int'l & Co. (Continued) Holdings, Inc. (Continued) CW10 Asian Paints, Ltd., National Investment Co., Exp. 08/17/10* ....... 1,300 $ 50,214 Exp. 10/06/10* .... 30,000 $ 37,890 CW10 Axis Bank, Ltd., Public Exp. 04/21/10* ....... 2,760 58,678 Warehousing Co., CW10 Bharat Heavy Exp. 03/17/10* .... 15,000 29,261 Electricals, Ltd., Sultan Center Exp. 09/01/10* ....... 3,394 175,309 Food Products, CW10 Bharat Petroleum Exp. 03/12/10* .... 60,000 44,309 Corp., Ltd., Commercial Bank Exp. 09/02/10* ....... 5,100 69,664 of Kuwait, CW10 Container Exp. 08/28/09* .... 10,000 32,396 Corp. Of India, National Real Exp. 02/16/10* ....... 2,800 78,735 Estate Bank for CW10 Crompton Development* ...... 40,000 27,589 Greaves, Ltd., Gulf Bank, Exp. 07/27/10* ....... 5,500 50,510 Exp. 10/06/10* .... 65,000 66,820 CW10 EIH, Ltd., Kuwait Food Co., Exp. 02/18/10* ....... 5,409 16,089 Exp. 11/16/10* .... 10,000 50,859 CW10 HCL Kuwait Real Estate Co., Technologies, Ltd., Exp. 11/16/10* .... 120,000 28,426 Exp. 09/01/10* ....... 8,500 67,831 Mena Holding Group, CW10 HDFC Bank, Exp. 11/16/10* .... 35,000 41,453 Ltd. - ADR, Mediobanca SPA, Exp. 12/30/10* ....... 2,551 93,330 Exp. 03/18/11* .... 4,298 667 CW10 Hindustan Merrill Lynch Int'l & Co. Unilever, Ltd., CW10 Burgan Bank, Exp. 12/30/10* ....... 14,000 79,677 Exp. 12/06/10* ....... 30,000 35,009 CW10 Infrastructure CW12 ABB Ltd. India, Development Finance Exp. 06/27/12* ....... 2,560 42,215 Co., Ltd., CW13 Divi's Exp. 08/12/10* ....... 25,900 85,892 Labatories, Ltd., CW10 Jaiprakash Exp. 05/22/13* ....... 80 1,164 Associates, Ltd., CW14 NTPC, Ltd., Exp. 07/01/10* .... 32,100 101,313 Exp. 10/06/14* ....... 22,673 114,856 CW10 Nestle India, Ltd., CW14 Reliance Exp. 09/30/10* ....... 1,500 82,142 Industries, Ltd., CW10 Ranbaxy Exp. 06/23/14* ....... 2,886 67,655 Laboratories, Ltd., CW10 Aditya Birla Exp. 11/08/10* ....... 8,900 98,979 Nuvo, Ltd., CW10 Sesa GOA, Ltd., Exp. 06/28/10* ....... 1,600 30,134 Exp. 01/21/10* ....... 14,000 123,607 CW10 Ambuja CW10 Sun Pharmaceutical Cements, Ltd., Industries, Ltd., Exp. 06/23/10* ....... 26,400 59,151 Exp. 02/17/10* ....... 2,400 77,827 CW10 Apollo Hospitals Enterprise, Ltd., Exp. 07/21/10* ....... 224 2,684 The accompanying notes are an integral part of the financial statements. 109
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ CALL WARRANTS -- (CONTINUED) CALL WARRANTS -- (CONTINUED) Merrill Lynch Int'l & Co. (Continued) Merrill Lynch Int'l & Co. (Continued) CW10 Suzlon CW11 Reliance Natural Energy, Ltd., Resources, Ltd., Exp. 09/16/10* ....... 10,500 $ 20,389 Exp. 01/25/11* ....... 42,400 $ 63,243 CW10 Tata Power Co., Ltd., CW11 Siemens India, Ltd., Exp. 09/30/10* ....... 4,040 119,951 Exp. 12/13/11* ....... 3,800 47,561 CW10 Unitech, Ltd., CW11 Sterlite Industries Exp. 07/12/10* ....... 10,200 18,042 India, Ltd., CW11 Adani Exp. 03/24/11* ....... 6,300 116,927 Enterprises, Ltd., CW11 Tata Steel, Ltd., Exp. 09/06/11* .... 4,400 41,231 Exp. 10/18/11* ....... 10,950 145,371 CW11 Bharti Airtel, Ltd., CW11 United Spirits, Ltd., Exp. 03/17/11* ....... 34,096 241,643 Exp. 10/05/11* ....... 2,200 59,591 CW11 Cairn India, Ltd., CW12 Colgate Palmolive Exp. 12/27/11* .... 12,470 75,619 India, Ltd., CW11 Cipla, Ltd./India, Exp. 10/25/12* ....... 5,200 73,650 Exp. 08/16/11* ....... 6,800 48,967 CW12 DLF, Ltd., CW11 Dr. Reddy's Exp. 06/21/12* ....... 4,300 33,381 Laboratories, Ltd., CW12 Essar Oil, Ltd., Exp. 01/03/11* ....... 4,500 110,895 Exp. 07/20/12* ....... 21,430 64,182 CW11 Grasim CW12 Idea Cellular, Ltd., Industries, Ltd., Exp. 03/05/12* ....... 57,200 71,365 Exp. 05/02/11* ....... 1,400 74,473 CW12 Kotak Mahindra CW11 Hero Honda Bank, Ltd., Motors, Ltd., Exp. 04/20/12* ....... 4,200 72,842 Exp. 05/02/11* ....... 1,400 51,685 CW12 Mundra Port and CW11 Housing Special Economic Development Finance Zone, Ltd., Corp., Exp. 11/23/12* ....... 4,200 49,959 Exp. 01/18/11* ....... 4,560 262,243 CW12 Power Grid Corp CW11 Indian Oil of India, Ltd., Corp., Ltd., Exp. 09/27/12* ....... 24,600 58,238 Exp. 08/25/11* ....... 9,200 60,486 CW12 Punj Lloyd, Ltd., CW11 Mahindra & Exp. 06/25/12* ....... 4,400 19,391 Mahindra, Ltd., CW13 Indiabulls Exp. 05/03/11* ....... 5,900 137,058 Securities, Ltd., CW11 Maruti Suzuki Exp. 01/08/13* ....... 4,800 3,539 India, Ltd., CW13 Jindal Steel & Exp. 06/13/11* ....... 3,700 124,062 Power, Ltd., CW11 Reliance Exp. 01/30/13* ....... 10,800 163,249 Capital, Ltd., CW13 Piramal Exp. 09/20/11* ....... 3,100 57,142 Healthcare, Ltd., CW11 Reliance Exp. 02/05/13* ....... 6,060 48,581 Communications, Ltd., CW14 Larsen & Exp. 01/25/11* ....... 20,229 74,933 Toubro, Ltd., Exp. 06/10/14* ....... 7,200 259,601 The accompanying notes are an integral part of the financial statements. 110
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE AMOUNT/ VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ CALL WARRANTS -- (CONTINUED) CERTIFICATES -- (CONTINUED) Merrill Lynch Int'l & Co. (Continued) HSBC Bank PLC (Continued) CW14 Oil & Natural Kayan Petrochemical Gas Corp., Ltd., Co., Exp. 02/18/14* ....... 4,257 $ 107,779 Exp. 06/04/12 ........ 9,000 $ 43,731 CW14 Tata Consultancy Saudi Telecom Co., Services, Ltd., Exp. 05/21/12 ........ 3,600 42,375 Exp. 08/06/14* ....... 5,840 89,210 Savola, CW11 ACC, Ltd., Exp. 04/20/12 ........ 8,300 66,718 Exp. 07/12/11* ....... 2,900 54,378 Jarir Marketing Co., CW14 Steel Authority Exp. 06/04/12 ........ 1,000 35,692 of India, Ltd., ------------ Exp. 03/25/14* ....... 9,100 46,939 TOTAL SAUDI ARABIA ........................ 750,699 ------------ ------------ TOTAL CALL WARRANTS TOTAL CERTIFICATES (Cost $6,173,776) ...................... 6,224,546 (Cost $748,961) ........................ 750,699 ------------ ------------ CERTIFICATES -- 0.2% CORPORATE BONDS -- 0.0% HSBC Bank PLC OMAN -- 0.0% Al Rajhi Bank, Bank Muscat SAOG Cv., Exp. 04/30/12 ........ 3,500 66,602 7.00%, 04/20/14 ...... $ 1,419 33 Alinma Bank, ------------ Exp. 06/04/12 ........ 10,150 34,299 TOTAL CORPORATE BONDS Almari Co., Ltd., (Cost $578) ............................ 33 Exp. 03/27/12 ........ 800 35,113 ------------ Arab National Bank, SHORT TERM INVESTMENTS -- 0.4% Exp. 06/04/12 ........ 3,000 33,873 BlackRock Liquidity Funds Banque Saudi Fransi, TempFund Portfolio - Exp. 04/30/12 ........ 3,300 35,896 Institutional Series Ethad Etisalat Co., (Cost $1,556,194) ....... 1,556,194 $ 1,556,194 Exp. 04/02/12 ........ 4,700 54,320 ------------ National Industrialization TOTAL INVESTMENTS -- 99.5% Co., Exp. 05/14/12 ... 6,200 46,366 (Cost $408,010,956)+ .................. 465,745,314 Riyad Bank, OTHER ASSETS IN EXCESS Exp. 06/11/12 ........ 8,600 61,563 OF LIABILITIES -- 0.5% ................. 2,571,467 Saudi Arabian ------------ Fertilizer Co., NET ASSETS -- 100.0% ..................... $468,316,781 Exp. 06/04/12 ........ 1,100 35,559 ============ Saudi Basic Industries Corp., Exp 03/26/12 ......... 3,800 83,202 Saudi Electricity Co., Exp. 06/25/12 ........ 14,000 42,085 Saudi Ind Investment Group., Exp. 06/11/12 ........ 5,750 33,305 The accompanying notes are an integral part of the financial statements. 111
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ - ---------- * Non-income producing security. @ Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other "accredited investors." Unless otherwise indicated, security is considered liquid. + The cost for Federal income tax purposes is $428,428,068. At December 31, 2009 net unrealized appreciation was $37,317,246. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $65,337,366, and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $28,020,120. (1) Illiquid security. ADR - American Depository Receipt GDR - Global Depository Receipt PLC - Public Limited Company The accompanying notes are an integral part of the financial statements. 112
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ At December 31, 2009, the Multi-Manager International Fund entered into forward foreign currency exchange contracts, which contractually obligate the Fund to deliver or receive currencies at specified future dates. The open contracts were as follows: VALUE AT NET CONTRACT DECEMBER 31, UNREALIZED SETTLEMENT DATE CURRENCY BOUGHT AMOUNT 2009 (DEPRECIATION) --------------- ------------------------------- ---------- ------------ -------------- March 2010......... 88,778,395 Japanese Yen $1,006,444 $953,214 $(53,230) March 2010......... 465,299 United Kingdom Pound 756,903 751,550 (5,353) --------- $(58,583) ========= VALUE AT NET CONTRACT DECEMBER 31, UNREALIZED SETTLEMENT DATE CURRENCY SOLD AMOUNT 2009 APPRECIATION --------------- ------------------------------- ---------- ------------ -------------- March 2010......... 5,899,923 Czechoslovakia Koruna $333,763 $320,184 $13,579 ======== At December 31, 2009, the Multi-Manager International Fund had open financial futures contracts as follows: NUMBER VALUE AT OF UNDERLYING EXPIRATION CONTRACT DECEMBER 31, UNREALIZED CONTRACTS CONTRACTS TO BUY DATE AMOUNT 2009 APPRECIATION - --------- ------------------------- ---------- ---------- ------------ -------------- 4 DJ EURO STOXX 50 March 2010 $170,420 $175,051 $4,631 ======= The accompanying notes are an integral part of the financial statements. 113
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER INTERNATIONAL FUND - -------------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ The following table provides a summary of inputs used to value the Funds' net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 - LEVEL 3 - TOTAL LEVEL 1 - SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 PRICES INPUTS INPUTS ----------------- ------------ ------------ ------------ INVESTMENTS IN SECURITIES: Common Stocks $386,287,088 $ 78,021,236 $308,265,852 $-- Exchange-Traded Funds 61,426,493 61,426,493 -- -- Preferred Stocks 9,365,376 9,365,376 -- -- Rights 134,885 134,885 -- -- Call Warrants 6,224,546 -- 6,224,546 -- Certificates 750,699 -- 750,699 -- Corporate Bonds 33 -- 33 -- Short-Term Investments 1,556,194 1,556,194 -- -- ------------ ------------ ------------ --- Total $465,745,314 $150,504,184 $315,241,130 $-- ------------ ------------ ------------ --- Other financial instruments* $ (40,373) $ 4,631 $ (45,004) $-- ============ ============ ============ === * Other financial instruments are forward foreign currency contracts, swaps, options written, and futures contracts not reflected in the Schedule of Investments, which are valued at the unrealized appreciation (depreciation) on the investment. The following is a reconciliation of assets of the International Fund, for Level 3 investments for which significant unobservable inputs were used to determined fair value: CERTIFICATES ------------ BALANCE AS OF JUNE 30, 2009 $ 24,321 Accrued discounts/premiums -- Realized gain (loss)(1) (43,872) Change in unrealized appreciation (depreciation)(1) 39,941 Net purchases (sales) (20,390) Transfers in and/or out of Level 3 -- -------- BALANCE AS OF DECEMBER 31, 2009 $ -- ======== (1) Disclosed in the Statement of Operations under Net Realized and Unrealized gain/(loss) on Investments. The accompanying notes are an integral part of the financial statements. 114
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets) ============================================================================================================================ PRINCIPAL VALUE PRINCIPAL VALUE AMOUNT (NOTE 2) AMOUNT (NOTE 2) ---------- ---------- ----------- ----------- INFLATION-LINKED & FIXED INCOME U.S. GOVERNMENT INFLATION-LINKED SECURITIES -- 47.5% SECURITIES -- 18.1% CORPORATE BONDS -- 0.6% U.S. Treasury Inflation American International Indexed Bonds, Group, Inc., 3.38%, 01/15/12 $ 2,362,000 $ 3,075,486 5.85%, U.S. Treasury Inflation 01/16/18 ................... $1,800,000 $1,476,952 Indexed Bonds, Dexia Credit Local, 2.00%, 04/15/12 542,000 603,370 2.38%, U.S. Treasury Inflation 09/23/11 ................... 1,000,000 1,020,961 Indexed Bonds, ---------- 0.63%, 04/15/13 576,000 599,033 TOTAL CORPORATE BONDS U.S. Treasury Inflation (Cost $2,347,543) ......................... 2,497,913 Indexed Bonds, ---------- 1.25%, 04/15/14 240,000 253,362 EXCHANGE-TRADED FUNDS -- 0.1% U.S. Treasury Inflation iShares Barclays U.S. Indexed Bonds, Treasury Inflation 2.00%, 01/15/16 808,000 929,321 Protected Securities U.S. Treasury Inflation Index Fund, Indexed Bonds, (Cost $360,987) ............ 3,738 388,378 2.38%, 01/15/17 500,000 578,884 ---------- U.S. Treasury Inflation VARIABLE RATE DEMAND Indexed Bonds, NOTES++ -- 0.7% 1.63%, 01/15/18 4,300,000 4,542,031 Metropolitan Life U.S. Treasury Inflation Global Funding I, Indexed Bonds, 144A@, 2.13%, 01/15/19 10,000 10,677 2.16%, U.S. Treasury Inflation 06/10/11 ................... 1,100,000 1,121,987 Indexed Bonds, Morgan Stanley, 2.38%, 01/15/27 616,000 694,872 2.37%, U.S. Treasury Inflation 05/14/10 ................... 1,300,000 1,309,323 Indexed Bonds, Swedbank AB, 144A@, 1.75%, 01/15/28 278,000 275,069 0.73%, U.S. Treasury Inflation 01/14/13 ................... 800,000 797,670 Indexed Bonds, ---------- 2.50%, 01/15/29 3,748,000 4,047,560 TOTAL VARIABLE RATE DEMAND NOTES U.S. Treasury Inflation (Cost $3,188,773) ......................... 3,228,980 Indexed Bonds, ---------- 3.38%, 04/15/32 504,000 758,812 U.S. Treasury Inflation Indexed Notes, 4.25%, 01/15/10 8,100,000 10,419,482 U.S. Treasury Inflation Indexed Notes, 0.88%, 04/15/10 1,200,000 1,373,883 U.S. Treasury Inflation Indexed Notes, 3.50%, 01/15/11 1,002,000 1,290,903 The accompanying notes are an integral part of the financial statements. 115
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE PRINCIPAL VALUE AMOUNT (NOTE 2) AMOUNT (NOTE 2) ---------- ----------- --------- ---------- U.S. GOVERNMENT INFLATION-LINKED FOREIGN GOVERNMENT INFLATION- SECURITIES -- (CONTINUED) LINKED SECURITIES -- (CONTINUED) U.S. Treasury Inflation Brazil Notas do Tesouro Indexed Notes, Nacional Series B, 3.00%, 07/15/12 $1,777,000 $ 2,297,019 6.00%, 05/15/17 3,618,000 BRL $3,769,474 U.S. Treasury Inflation Brazil Notas do Tesouro Indexed Notes, Nacional Series B, 1.88%, 07/15/13 5,778,000 7,162,402 6.00%, 05/15/45 4,578,000 BRL 4,697,671 U.S. Treasury Inflation Bundesobligation Indexed Notes, Inflation Linked, 2.00%, 01/15/14 930,000 1,150,587 2.25%, 04/15/13 1,400,000 EUR 2,243,184 U.S. Treasury Inflation Bundesrepublik Deutschland, Indexed Notes, 3.75%, 01/04/15 300,000 EUR 454,427 2.00%, 07/15/14 1,530,000 1,858,800 Canadian Government U.S. Treasury Inflation Bond, Indexed Notes, 4.25%, 12/01/21 1,400,000 CAD 2,434,435 1.88%, 07/15/15 7,300,000 8,548,365 Canadian Government U.S. Treasury Inflation Bond, Indexed Notes, 2.00%, 12/01/41 1,000,000 CAD 1,105,339 2.50%, 07/15/16 2,080,000 2,424,571 Deutsche Bundesrepublik U.S. Treasury Inflation Inflation Linked, Indexed Notes, 1.50%, 04/15/16 2,100,000 EUR 3,345,948 2.63%, 07/15/17 3,785,000 4,341,648 France Government U.S. Treasury Inflation Bond OAT, Indexed Notes, 3.00%, 07/25/12 1,700,000 EUR 3,061,189 2.38%, 01/15/25 3,723,000 4,505,066 France Government U.S. Treasury Inflation Bond OAT, Indexed Notes, 2.50%, 07/25/13 2,400,000 EUR 4,181,486 2.00%, 01/15/26 4,626,000 5,060,012 France Government U.S. Treasury Inflation Bond OAT, Indexed Notes, 1.60%, 07/25/15 500,000 EUR 825,512 3.63%, 04/15/28 384,000 634,357 France Government U.S. Treasury Inflation Bond OAT, Indexed Notes, 1.00%, 07/25/17 1,400,000 EUR 2,129,193 3.88%, 04/15/29 6,699,000 11,335,288 France Government ---------- Bond OAT, TOTAL U.S. GOVERNMENT INFLATION-LINKED 2.25%, 07/25/20 500,000 EUR 872,173 SECURITIES France Government (Cost $75,594,170) .......................... 78,770,860 Bond OAT, ---------- 3.40%, 07/25/29 550,000 EUR 1,193,780 FOREIGN GOVERNMENT INFLATION- France Government LINKED SECURITIES -- 27.2% Bond OAT, Australia Government Bond, 3.15%, 07/25/32 1,500,000 EUR 3,094,109 4.00%, 08/20/20 1,000,000 AUD 1,390,854 France Government Australia Government Bond, Bond OAT, 3.00%, 09/20/25 1,100,000 AUD 1,000,620 1.80%, 07/25/40 1,000,000 EUR 1,529,749 The accompanying notes are an integral part of the financial statements. 116
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE PRINCIPAL VALUE AMOUNT (NOTE 2) AMOUNT (NOTE 2) ---------- ------------ ---------- ------------ FOREIGN GOVERNMENT INFLATION- FOREIGN GOVERNMENT INFLATION- LINKED SECURITIES -- (CONTINUED) LINKED SECURITIES -- (CONTINUED) France Government South Africa Bond OAT, Government Bond, 1.80%, 07/25/40 400,000 EUR $ 611,899 2.60%, 03/31/28 8,800,000 ZAR $ 1,660,675 Italy Buoni Poliennali Sweden Government Del Tesoro, Bond, 2.15%, 09/15/14 800,000 EUR 1,360,789 3.50%, 12/01/15 10,500,000 SEK 1,967,357 Italy Buoni Poliennali Sweden Government Del Tesoro, Bond, 2.10%, 09/15/17 800,000 EUR 1,280,119 4.00%, 12/01/20 14,700,000 SEK 3,150,839 Italy Buoni Poliennali Sweden Government Del Tesoro, Bond, 2.35%, 09/15/19 3,500,000 EUR 5,345,851 3.50%, 12/01/28 7,500,000 SEK 1,607,581 Italy Buoni Poliennali U.K. Gilt Inflation Del Tesoro, Linked, 2.60%, 09/15/23 2,700,000 EUR 4,306,164 2.50%, 08/16/13 900,000 GBP 3,785,273 Italy Buoni Poliennali U.K. Gilt Inflation Del Tesoro, Linked, 2.35%, 09/15/35 400,000 EUR 663,302 2.50%, 07/26/16 900,000 GBP 4,226,811 Italy Buoni Poliennali U.K. Gilt Inflation Del Tesoro, Linked, 2.55%, 09/15/41 800,000 EUR 1,212,673 1.25%, 11/22/17 1,700,000 GBP 3,177,697 Japanese Government U.K. Gilt Inflation CPI Linked Bond, Linked, 1.20%, 12/10/17 470,000,000 JPY 4,802,773 2.50%, 04/16/20 950,000 GBP 4,501,620 Japanese Government U.K. Gilt Inflation CPI Linked Bond, Linked, 1.40%, 03/10/18 790,000,000 JPY 8,155,206 1.88%, 11/22/22 2,300,000 GBP 4,309,450 Mexican Udibonos, U.K. Gilt Inflation 3.50%, 12/14/17 12,024,900 MXN 4,073,797 Linked, Network Rail 2.50%, 07/17/24 800,000 GBP 3,363,884 Infrastructure U.K. Gilt Inflation Finance PLC, Linked, 1.38%, 11/22/37 320,000 GBP 603,420 1.25%, 11/22/27 2,500,000 GBP 4,713,181 New South Wales U.K. Gilt Inflation Treasury Corp., Linked, 3.75%, 11/20/20 800,000 GBP 733,026 4.13%, 07/22/30 500,000 GBP 2,028,162 Poland Government U.K. Gilt Inflation Bond, Linked, 3.00%, 08/24/16 1,825,000 PLN 697,123 1.25%, 11/22/32 300,000 GBP 526,516 Royal Bank of Scotland U.K. Gilt Inflation Group PLC, Linked, 1.50%, 03/30/12 2,100,000 GBP 2,062,652 1.13%, 11/22/37 1,900,000 GBP 3,675,666 The accompanying notes are an integral part of the financial statements. 117
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL VALUE VALUE AMOUNT (NOTE 2) SHARES (NOTE 2) ---------- ------------ ----------- ------------ FOREIGN GOVERNMENT INFLATION- DIVERSIFIED -- 0.1% LINKED SECURITIES -- (CONTINUED) Shaftesbury PLC ............ 37,000 $ 235,264 U.K. Gilt Inflation Top REIT, Inc. ............. 5 22,207 Linked, ------------ 4.50%, 12/07/42 700,000 GBP $ 1,150,593 257,471 U.K. Gilt Inflation ------------ Linked, DIVERSIFIED REAL ESTATE ACTIVITIES -- 4.1% 0.75%, 11/22/47 900,000 GBP 1,652,053 CapitaLand, Ltd. ........... 430,550 1,277,254 ------------ City Developments, Ltd. .... 136,000 1,112,007 TOTAL FOREIGN GOVERNMENT INFLATION- Daito Trust Construction LINKED SECURITIES Co., Ltd. ............... 5,801 274,666 (Cost $113,188,415) ........................ 118,735,295 Daiwa House Industry ------------ Co., Ltd. ............... 110,300 1,186,013 ASSET-BACKED SECURITIES -- 0.8% GPT Group* ................. 963,982 -- Ally Auto Receivables Great Eagle Holdings, Trust, Ltd. .................... 45,100 116,945 1.32%, 06/15/12 1,500,000 1,501,381 Hang Lung Group, Ltd. ...... 80,900 400,094 Bank of America Hang Lung Properties, Auto Trust, Ltd. .................... 387,000 1,517,180 1.16%, 02/15/12 1,000,000 1,002,430 Henderson Land Ford Credit Auto Development Co., Ltd. ... 117,000 874,312 Owner Trust, Kerry Properties, Ltd. ..... 331,200 1,675,222 0.36%, 09/15/10 429,625 429,723 Lend Lease Corp., Ltd. ..... 42,000 387,699 WaMu Mortgage Mitsubishi Estate Co., Pass Through Ltd. .................... 144,120 2,300,979 Certificates, Mitsui Fudosan Co., Ltd. ... 154,689 2,615,492 5.61%, 11/25/36 713,096 524,601 PDG Realty SA ------------ Empreendimentos e TOTAL ASSET-BACKED SECURITIES Participacoes ........... 24,400 243,159 (Cost $3,384,937) .......................... 3,458,135 Sumitomo Realty & ------------ Development Co., Ltd. ... 58,000 1,094,884 TOTAL INFLATION-LINKED & FIXED INCOME Sun Hung Kai Properties, SECURITIES Ltd. .................... 150,200 2,233,347 (Cost $198,064,825) ........................ 207,079,561 Wharf Holdings, Ltd. ....... 120,800 693,274 ------------ ------------ REAL ESTATE RELATED 18,002,527 SECURITIES -- 19.7% ------------ COMMON STOCK -- 7.3% HOTELS, RESORTS & CRUISE LINES -- 0.4% DEPARTMENT STORES -- 0.2% Hyatt Hotels Corp. - Lifestyle International Class A* ................ 7,200 214,632 Holdings, Ltd. .......... 549,400 1,021,349 Shangri-La Asia, Ltd. ...... 355,000 665,124 ------------ Sol Melia, SA .............. 95,000 804,305 ------------ 1,684,061 ------------ INDUSTRIAL -- 0.0% Segro PLC .................. 35,412 196,422 ------------ The accompanying notes are an integral part of the financial statements. 118
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ OFFICE -- 0.1% REAL ESTATE OPERATING COMPANIES -- (CONTINUED) CapitaCommercial Trust...... 197,000 $ 163,134 ProLogis European ING Office Fund............. 495,900 281,881 Properties*.............. 29,881 $ 183,159 Japan Excellent, Inc. ...... 7 31,199 Safestore Holdings PLC...... 109,200 288,760 ------------ Swiss Prime Site AG*........ 7,640 428,564 476,214 ------------ ------------ 6,447,743 REAL ESTATE DEVELOPMENT -- 0.9% ------------ Cheung Kong Holdings, TOTAL COMMON STOCK Ltd...................... 79,410 1,020,435 (Cost $25,316,905)..................... 31,942,212 China Overseas Land & ------------ Investment, Ltd. ........ 440,000 921,928 REAL ESTATE INVESTMENT Glorious Property TRUSTS -- 12.4% Holdings, Ltd.* ......... 341,000 154,373 DIVERSIFIED -- 2.3% Grainger PLC................ 63,170 130,205 British Land Co. PLC........ 150,448 1,158,504 Guangzhou R&F Canadian Real Estate Properties Co., Ltd. .... 175,000 305,237 Investment Trust......... 3,488 90,447 Helical Bar PLC............. 27,240 150,130 Dexus Property Group........ 932,414 707,398 KWG Property Holding, Gecina SA................... 1,330 144,617 Ltd. .................... 306,000 233,452 General Property Trust...... 605,782 325,523 Longfor Properties Co., ICADE....................... 5,530 529,455 Ltd.*.................... 25,000 28,213 Kenedix Realty Shimao Property Investment Corp.......... 58 158,797 Holdings, Ltd. .......... 105,000 196,862 Land Securities Group Shui On Land, Ltd. ......... 239,200 140,347 PLC...................... 144,209 1,587,246 Sino-Ocean Land. Liberty Property Trust...... 24,900 797,049 Holdings, Ltd. .......... 148,000 135,891 Mirvac Group................ 176,475 246,226 Wing Tai Holdings, Ltd. .... 340,000 439,352 Stockland Corp., Ltd........ 367,114 1,293,419 ------------ Suntec Real Estate 3,856,425 Investment Trust......... 118,500 113,440 ------------ United Urban REAL ESTATE OPERATING COMPANIES -- 1.5% Investment Corp.......... 42 222,025 Aeon Mall Co., Ltd. ........ 48,100 931,871 Vornado Realty Trust........ 39,272 2,746,706 Atrium European Real ------------ Estate, Ltd. ............ 17,209 113,728 10,120,852 Atrium European Real ------------ Estate, Ltd.* ........... 30,687 206,536 INDUSTRIAL -- 0.7% BR Malls Participacoes AMB Property Corp........... 32,500 830,375 SA*...................... 34,500 426,048 Ascendas Real Estate Castellum AB................ 20,100 203,569 Investment Trust......... 352,600 553,511 Central Pattana PCL - Goodman Group............... 1,094,719 619,330 NVDR..................... 850,000 517,654 Japan Logistics Fund, Deutsche Wohnen AG*......... 5,150 49,270 Inc...................... 29 212,485 Hongkong Land ProLogis.................... 56,700 776,223 Holdings, Ltd. .......... 317,100 1,569,645 ------------ Hysan Development 2,991,924 Co., Ltd. ............... 344,613 975,285 ------------ Norwegian Property ASA*..................... 239,430 553,654 The accompanying notes are an integral part of the financial statements. 119
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ OFFICE -- 1.7% RETAIL -- (CONTINUED) Alexandria Real Estate Frontier Real Estate Equities, Inc. .......... 5,400 $ 347,166 Investment Corp. ........ 32 $ 227,512 Boston Properties, Inc. .... 23,000 1,542,610 Hammerson PLC .............. 75,339 512,789 Derwent London PLC ......... 60,948 1,295,140 Immobiliare Grande Digital Realty Trust, Inc. . 17,900 900,012 Distribuzione ........... 257,000 574,728 Douglas Emmett, Inc. ....... 30,600 436,050 Kimco Realty Corp. ......... 7,700 104,181 Duke Realty Corp. .......... 29,400 357,798 Klepierre .................. 37,120 1,503,925 Great Portland Estates Liberty International PLC .. 65,409 540,765 PLC ..................... 98,300 455,012 Mercialys SA ............... 10,226 359,964 Highwoods Properties, Primaris Retail Real Inc ..................... 30,000 1,000,500 Estate Investment Japan Real Estate Trust(1) ................ 7,300 112,657 Investment Corp. ........ 26 191,665 Regency Centers Corp. ...... 11,000 385,660 Kilroy Realty Corp. ........ 12,400 380,308 RioCan Real Estate Orix Jreit, Inc. ........... 61 304,553 Investment Trust ........ 9,000 170,818 SL Green Realty Corp. ...... 6,900 346,656 Simon Property Group, ------------ Inc. .................... 59,538 4,751,164 7,557,470 Tanger Factory Outlet ------------ Centers, Inc. ........... 17,700 690,123 RESIDENTIAL -- 0.9% Taubman Centers, Inc. ...... 18,000 646,380 American Campus The Link Real Estate Communities, Inc. ....... 19,600 550,760 Investment Trust ........ 173,900 443,746 Apartment Investment & The Macerich Co. ........... 31,290 1,124,876 Management Co. - Unibail-Rodamco SE ......... 16,263 3,572,651 Class A ................. 20,900 332,728 Weingarten Realty, Inc. .... 17,700 350,283 AvalonBay Communities, Westfield Group ............ 180,785 2,023,322 Inc. .................... 6,829 560,729 ------------ BRE Properties, Inc. ....... 9,700 320,876 21,722,729 Camden Property Trust ...... 8,600 364,382 ------------ Equity Residential ......... 6,800 229,704 SPECIALIZED -- 1.8% Essex Property Trust, Inc. . 12,000 1,003,800 Extra Space Storage, Nippon Accommodations Inc. .................... 9,000 103,950 Fund, Inc. .............. 17 88,918 Health Care Property UDR, Inc. .................. 35,219 579,001 Investors, Inc. ......... 43,800 1,337,652 ------------ Host Hotels & Resorts, 4,030,898 Inc.* ................... 135,372 1,579,789 ------------ Nationwide Health RETAIL -- 5.0% Properties, Inc. ........ 35,300 1,241,854 Acadia Realty Trust ........ 9,731 164,162 Omega Healthcare Calloway Real Estate Investors, Inc. ......... 19,600 381,220 Investment Trust ........ 9,000 167,892 Pebblebrook Hotel Trust* ... 3,400 74,834 CapitaMall Trust ........... 126,242 161,132 Public Storage ............. 16,800 1,368,360 CFS Retail Property Ventas, Inc. ............... 37,700 1,648,998 Trust ................... 118,385 201,581 ------------ Corio NV ................... 13,432 915,119 7,736,657 Eurocommercial ------------ Properties NV ........... 10,780 446,195 TOTAL REAL ESTATE INVESTMENT TRUSTS Federal Realty (Cost $40,551,864) ...................... 54,160,530 Investment Trust ........ 23,200 1,571,104 ------------ The accompanying notes are an integral part of the financial statements. 120
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL PRINCIPAL AMOUNT/ VALUE AMOUNT/ VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ RIGHTS -- 0.0% SHORT-TERM INVESTMENTS -- 4.9% Grainger PLC* .............. 39,240 $ 84,930 MONEY MARKET FUND -- 3.9% ProLogis European BlackRock Liquidity Properties* ............. 29,881 -- Funds TempFund ------------ Portfolio - Institutional TOTAL RIGHTS Series .................. 17,105,945 $ 17,105,945 (Cost $99,048) ........................... 84,930 ------------ ------------ REPURCHASE AGREEMENT -- 0.3% TOTAL REAL ESTATE RELATED With Credit Suisse Securities (USA) LLC: SECURITIES at 0.00%, dated 12/31/09, (Cost $65,967,817) ....................... 86,187,672 to be purchased 1/4/10, ------------ repurchase price $1,200,000 COMMODITY RELATED collateralized by U.S. SECURITIES -- 26.7% Cash Management Bill, STRUCTURED NOTE -- 1.2% par value $1,229,000, Deutsche Bank AG, 0.41%, 6/10/10, market London Branch, Structured value $1,200,000 ........ $ 1,200,000 1,200,000 Note Linked to the DB ------------ Liquidity Commodity U.S. AGENCY OBLIGATIONS -- 0.7% Index, Federal Home Loan Bond, 0.13%, 01/07/10 (Cost 0.04%, 01/8/10 .......... 1,000,000 999,992 $3,300,000) ............. $ 3,300,000 5,175,390 Federal Home Loan Bond, ------------ 0.08%, 02/17/10 ......... 2,000,000 1,999,900 EXCHANGE-TRADED FUNDS -- 16.6% ------------ PowerShares DB 2,999,892 Commodity Index ------------ Tracking Fund* (Cost TOTAL SHORT-TERM INVESTMENTS $67,400,443) ............ 2,942,000 72,432,040 (Cost $21,305,729) ....................... 21,305,837 ------------ ------------ INVESTMENT COMPANIES -- 8.9% TOTAL INVESTMENTS, BEFORE OPTIONS Credit Suisse WRITTEN -- 98.9% Commodity Return (Cost $392,561,773) ...................... 431,234,817 Strategy Fund ........... 2,321,448 19,941,239 ------------ PIMCO Commodity OPTIONS WRITTEN -- 0.0% RealReturn Strategy U.S. 10YR Futures Fund - Institutional Expires 2/10/10 Shares .................. 2,308,343 19,113,078 Strike Price $116 ....... (2) (2,188) ------------ U.S. 10YR Futures TOTAL INVESTMENT COMPANIES Expires 2/10/10 (Cost $36,522,959) ....................... 39,054,317 Strike Price $119 ....... (2) (62) ------------ U.S. 10YR Futures TOTAL COMMODITY RELATED Expires 2/17/10 SECURITIES at 3.25% ................ (110) (300) (Cost $107,223,402) ...................... 116,661,747 ------------ The accompanying notes are an integral part of the financial statements. 121
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ PRINCIPAL PRINCIPAL AMOUNT/ VALUE AMOUNT/ VALUE SHARES (NOTE 2) SHARES (NOTE 2) ----------- ------------ ----------- ------------ OPTIONS WRITTEN -- (CONTINUED) OPTIONS WRITTEN -- (CONTINUED) U.S. 10YR Futures U.S. 10YR Futures Expires 2/17/10 Expires 4/19/10 at 3.25% ................ (100) $ (272) at 5.00% ................ (520) $ (19,764) U.S. 10YR Futures U.S. 10YR Futures Expires 2/17/10 Expires 7/10/12 at 4.00% ................ (100) (16,274) at 10.00% ............... (30) (984) U.S. 10YR Futures U.S. 10YR Futures Expires 2/17/10 Expires 7/12/12 at 4.00% ................ (170) (27,666) at 10.00% ............... (40) (1,313) U.S. 10YR Futures U.S. 5YR Futures Expires 3/10/10 Expires 6/15/10 Strike Price $115 ....... (12) (11,625) at 5.00% ................ (100) (1,259) U.S. 10YR Futures U.S. 7YR Futures Expires 3/10/10 Expires 8/31/10 Strike Price $119 ....... (12) (562) at 6.00% ................ (420) (8,096) U.S. 10YR Futures ------------ Expires 4/19/10 TOTAL OPTIONS WRITTEN at 3.25% ................ (520) (8,820) (Premiums received U.S. 10YR Futures $217,617) ................................. (148,050) Expires 4/19/10 ------------ at 3.25% ................ (240) (4,071) TOTAL INVESTMENTS, NET OF U.S. 10YR Futures OPTIONS WRITTEN -- 98.8% Expires 4/19/10 (Cost $392,344,156)+ ...................... $431,086,767 at 4.25% ................ (240) (44,794) OTHER ASSETS IN EXCESS OF LIABILITIES -- 1.2% .................... 5,134,145 ------------ NET ASSETS -- 100.0% ........................ $436,220,912 ============ The accompanying notes are an integral part of the financial statements. 122
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ - ---------- @ Security sold within the terms of a private placement memorandum, restricted and/or exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in the program or other "accredited investors." Unless otherwise indicated, security is considered liquid. ++ Denotes a Variable or Floating Rate Note. Variable or Floating Rate Notes are instruments whose rates change periodically. The rates shown are the interest rates as of December 31, 2009. * Non-income producing security. + The cost for Federal income tax purposes is $417,552,085. At December 31, 2009, net unrealized appreciation was $13,682,732. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $39,134,621, and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $25,451,889. (1) Foreign-denominated security; Canadian. PLC -- Public Limited Company AUD -- Australian Dollar BRL -- Brazilian Dollar CAD -- Canadian Dollar EUR -- Euro GBP -- United Kingdom Pound JPY -- Japanese Yen MXN -- Mexican Peso PLN -- Polish Zloty SEK -- Swedish Krona ZAR -- South African Rand The accompanying notes are an integral part of the financial statements. 123
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ At December 31, 2009, the Multi-Manager Real Asset Fund entered into forward foreign currency exchange contracts, which contractually obligate the Fund to deliver or receive currencies at specified future dates. The open contracts were as follows: VALUE AT NET UNREALIZED CONTRACT DECEMBER 31, APPRECIATION SETTLEMENT DATE CURRENCY BOUGHT AMOUNT 2009 (DEPRECIATION) - ------------------------------------------------ ---------------------------- ---------- ------------ -------------- January 2010 ................................... 367,078 EURO $ 541,281 $ 526,651 $ (14,630) January 2010 ................................... 336,323 EURO 495,930 482,526 (13,404) January 2010 ................................... 748,163 EURO 1,073,179 1,073,397 218 January 2010 ................................... 180,000 EURO 258,478 258,247 (231) January 2010 ................................... 128,820,000 Japanese Yen 1,460,728 1,383,851 (76,877) February 2010 .................................. 175,680,000 Korean Won 150,000 150,672 672 February 2010 .................................. 176,175,000 Korean Won 150,000 151,097 1,097 February 2010 .................................. 119,100,000 Korean Won 100,000 102,146 2,146 February 2010 .................................. 119,540,000 Korean Won 100,000 102,524 2,524 February 2010 .................................. 28,219,000 Korean Won 23,898 24,202 304 February 2010 .................................. 28,148,000 Korean Won 23,858 24,141 283 February 2010 .................................. 241,220,000 Korean Won 200,000 206,883 6,883 February 2010 .................................. 695,370 Singapore Dollar 500,000 495,038 (4,962) February 2010 .................................. 557,860 Singapore Dollar 400,000 397,144 (2,856) February 2010 .................................. 72,885 South African Rand 9,106 9,806 700 April 2010 ..................................... 1,311,300 South African Rand 100,000 99,097 (903) June 2010 ...................................... 6,077,700 Chinese Yuan 900,000 892,073 (7,927) July 2010 ...................................... 26,498,000 Korean Won 22,406 22,553 147 July 2010 ...................................... 15,939,058 Korean Won 13,510 13,566 56 July 2010 ...................................... 15,952,770 Korean Won 13,369 13,578 209 July 2010 ...................................... 118,700,000 Korean Won 100,000 101,028 1,028 July 2010 ...................................... 16,000,000 Korean Won 13,502 13,618 116 July 2010 ...................................... 120,280,000 Korean Won 100,000 102,372 2,372 August 2010 .................................... 63,427,000 Korean Won 53,875 53,915 40 November 2010 .................................. 15,592,172 Korean Won 13,352 13,211 (141) November 2010 .................................. 28,524,000 Korean Won 24,363 24,167 (196) --------- $(103,332) ========= The accompanying notes are an integral part of the financial statements. 124
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ VALUE AT NET UNREALIZED CONTRACT DECEMBER 31, APPRECIATION SETTLEMENT DATE CURRENCY SOLD AMOUNT 2009 (DEPRECIATION) - -------------------------------------------- ------------------------------- ----------- ------------ -------------- January 2010 ............................... 77,000 Australian Dollar $ 71,222 $ 69,170 $ 2,052 January 2010 ............................... 723,000 Australian Dollar 668,703 649,480 19,223 January 2010 ............................... 205,000 Australian Dollar 184,973 184,154 819 January 2010 ............................... 505,000 Australian Dollar 447,150 453,648 (6,498) January 2010 ............................... 408,000 Australian Dollar 361,382 366,511 (5,129) January 2010 ............................... 1,542,600 Australian Dollar 1,402,538 1,384,134 18,404 January 2010 ............................... 1,986,000 Canadian Dollar 1,865,651 1,894,450 (28,799) January 2010 ............................... 1,819,000 Canadian Dollar 1,729,380 1,735,150 (5,770) January 2010 ............................... 243,423 EURO 350,167 349,241 926 January 2010 ............................... 12,316,400 EURO 18,258,017 17,670,469 587,548 January 2010 ............................... 450,000 EURO 653,024 645,617 7,407 January 2010 ............................... 332,000 EURO 474,433 476,322 (1,889) January 2010 ............................... 14,950,000 EURO 21,706,966 21,448,837 258,129 January 2010 ............................... 733,322,000 Japanese Yen 8,282,942 7,878,061 404,881 January 2010 ............................... 584,695,000 Japanese Yen 6,533,438 6,281,465 251,973 January 2010 ............................... 29,302,200 Swedish Krona 4,148,385 4,104,389 43,996 January 2010 ............................... 19,679,000 Swedish Krona 2,736,558 2,757,348 (20,790) January 2010 ............................... 14,678,000 United Kingdom Pound 24,411,861 23,701,052 710,809 January 2010 ............................... 302,000 United Kingdom Pound 500,359 487,650 12,709 January 2010 ............................... 121,000 United Kingdom Pound 200,714 195,383 5,331 January 2010 ............................... 9,078,000 United Kingdom Pound 14,824,548 14,657,759 166,789 February 2010 .............................. 14,802,869 Brazilian Real 7,691,800 8,430,912 (739,112) February 2010 .............................. 729,572 Polish Zloty 253,323 254,209 (886) February 2010 .............................. 1,142,817 Polish Zloty 388,290 398,198 (9,908) February 2010 .............................. 1,289,618 South African Rand 163,740 173,507 (9,767) February 2010 .............................. 9,018,674 South African Rand 1,176,743 1,213,384 (36,641) April 2010 ................................. 3,435,661 Mexican Peso 252,353 259,639 (7,286) April 2010 ................................. 34,650,210 Mexican Peso 2,596,688 2,618,576 (21,888) ---------- $1,596,633 ========== The accompanying notes are an integral part of the financial statements. 125
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ At December 31, 2009, the Multi-Manager Real Asset Fund had open financial futures contracts as follows: NUMBER VALUE AT UNREALIZED OF UNDERLYING EXPIRATION CONTRACT DECEMBER 31, APPRECIATION CONTRACTS CONTRACTS TO BUY DATE AMOUNT 2009 (DEPRECIATION) - --------- ------------------------------------------------- -------------- ----------- ------------ -------------- 10 90DAY EURO DOLLAR March 2010 $ 2,473,625 $ 2,491,125 $ 17,500 59 90DAY EURO DOLLAR June 2010 14,610,300 14,649,700 39,400 20 90DAY EURO DOLLAR September 2010 4,910,625 4,945,000 34,375 23 FIN FUT UK 90DAY LIF June 2010 4,552,955 4,597,252 44,297 20 FIN FUT EURO-BOBL 5Y March 2010 3,344,238 3,316,083 (28,155) 15 EURO-BUND FUTURE March 2010 2,639,721 2,605,975 (33,746) 25 FIN FUT EURIBOR March 2010 8,793,114 8,891,133 98,019 58 FIN FUT EURIBOR June 2010 20,434,992 20,552,597 117,605 -------- $289,295 ======== At December 31, 2009, the Multi-Manager Real Asset Fund had open interest swap contracts as follows: UNREALIZED TERMINATION NOTIONAL FIXED FLOATING APPRECIATION COUNTERPARTY DATE AMOUNT RATE RATE (DEPRECIATION) - --------------------------------------------------------- ----------- --------- ----- ------------- -------------- Deutsche Bank AG* ....................................... 6/16/15 4,300,000 3.00% 6 MONTH LIBOR $(30,156) ======== * Portfolio pays the floating rate and receives the fixed rate. At December 31, 2009, the Multi-Manager Real Asset Fund had total return swap contracts as follows: UNREALIZED TERMINATION NOTIONAL APPRECIATION COUNTERPARTY DATE AMOUNT DESCRIPTION (DEPRECIATION) - ---------------------------------------------------- ----------- --------- -------------------------- -------------- BNP Paribas SA ..................................... 4/15/10 1,200,000 Receive variable payments $(17,976) on the three month LIBOR ======== and pay variable payments based on the TSY Inflation Index. The accompanying notes are an integral part of the financial statements. 126
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- MULTI-MANAGER REAL ASSET FUND - ----------------------------- INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) -- CONTINUED ============================================================================================================================ The following table provides a summary of inputs used to value the Funds' net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements): LEVEL 2 - LEVEL 3 - TOTAL LEVEL 1 - SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE DECEMBER 31, 2009 PRICES INPUTS INPUTS ----------------- ------------ ------------ ------------ INVESTMENTS IN SECURITIES: INFLATION-LINKED & FIXED INCOME SECURITIES: Corporate Bonds $ 2,497,913 $ -- $ 2,497,913 $-- Exchange-Traded Funds 388,378 388,378 -- -- Variable Rate Demand Notes 3,228,980 -- 3,228,980 -- U.S Government Inflation-Linked Securities 78,770,860 -- 78,770,860 -- Foreign Government Inflation-Linked Securities 118,735,295 -- 118,735,295 -- Asset-Backed Securities 3,458,135 -- 3,458,135 -- REAL ESTATE RELATED SECURITIES: Common Stocks 31,942,212 31,942,212 -- -- Real Estate Investment Trusts 54,160,530 54,160,530 -- -- Rights 84,930 84,930 -- -- COMMODITY RELATED SECURITIES: Structured Note 5,175,390 -- 5,175,390 -- Exchange-Traded Funds 72,432,040 72,432,040 -- -- Investment Companies 39,054,317 39,054,317 -- -- Short-Term Investments 21,305,837 17,105,945 4,199,892 -- ------------ ------------ ------------ --- Total $431,234,817 $215,168,352 $216,066,465 $-- ============ ============ ============ === Other financial instruments* $ 1,586,414 $ 289,295 $ 1,297,119 $-- ============ ============ ============ === * Other financial instruments are forward foreign currency contracts, swaps, options written, and futures contracts not reflected in the Schedule of Investments, which are valued at the unrealized appreciation (depreciation) on the investment. The accompanying notes are an integral part of the financial statements. 127
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL STATEMENTS ============================================================================================================================ STATEMENTS OF ASSETS AND LIABILITIES December 31, 2009 (Unaudited) SMALL-CAP MULTI-MANAGER STRATEGY FUND LARGE-CAP FUND ------------- -------------- ASSETS: Investment in securities at value* ........................................................ $ 97,279,492 $175,856,268 Receivable for fund shares sold ........................................................... 56,687 107,052 Receivable from Advisor ................................................................... 11,452 -- Dividends and interest receivable ......................................................... 101,383 217,606 Other assets .............................................................................. 19,470 8,944 ------------ ------------ Total assets .............................................................................. 97,468,484 176,189,870 ------------ ------------ LIABILITIES: Obligation to return securities lending collateral ........................................ 24,818,527 25,107,923 Payable for fund shares redeemed .......................................................... 124,522 162,481 Accrued advisory fee ...................................................................... -- 93,915 Other accrued expenses .................................................................... 121,136 167,976 ------------ ------------ Total liabilities ......................................................................... 25,064,185 25,532,295 ------------ ------------ NET ASSETS ................................................................................ $ 72,404,299 $150,657,575 ============ ============ NET ASSETS CONSIST OF: Paid-in capital ........................................................................... $ 85,315,052 $206,460,976 Undistributed (distribution in excess of) net investment income ........................... 4,588 (14,204) Accumulated net realized loss on investments .............................................. (28,909,068) (86,131,465) Net unrealized appreciation of investments ................................................ 15,993,727 30,342,268 ------------ ------------ NET ASSETS ................................................................................ $ 72,404,299 $150,657,575 ============ ============ NET ASSETS BY SHARE CLASS: Institutional Shares ...................................................................... $ 72,404,299 $150,655,376 A Shares .................................................................................. -- 2,199 ------------ ------------ $ 72,404,299 $150,657,575 ============ ============ SHARES OF BENEFICIAL INTEREST OUTSTANDING: ($0.01 par value, unlimited authorized shares): Institutional Shares ................................................................... 8,980,804 14,622,2114 A Shares ............................................................................... -- 213 NET ASSET VALUE PER SHARE: Institutional Shares (net asset value (NAV), offering and redemption price) ............................................................... $ 8.06 $ 10.30 ------------ ------------ A Shares (net asset value (NAV) and redemption price) .................................. $ -- $ 10.32 ------------ ------------ A Shares (offering price -- NAV / 0.965) ............................................... $ -- $ 10.69 ------------ ------------ - ---------- * Investments in securities, at cost ..................................................... $ 81,285,765 $145,514,000 The accompanying notes are an integral part of the financial statements. 128
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF ASSETS AND LIABILITIES December 31, 2009 (Unaudited) MULTI-MANAGER MULTI-MANAGER INTERNATIONAL FUND REAL ASSET FUND ------------------ --------------- ASSETS: Investment in securities, at value* ................................................. $ 465,745,314 $ 431,234,817 Cash ................................................................................ 351,205 3,125,311 Foreign currency, at value** ........................................................ 1,663,344 1,207,251 Deposits with broker for futures contracts .......................................... -- 65,000 Deposits with broker ................................................................ -- 60,000 Receivable for fund shares sold ..................................................... 268,790 387,628 Receivable for investments sold ..................................................... 764,508 2,070,548 Variation margin receivable on futures contracts .................................... 77,229 5,018 Dividends and interest receivable ................................................... 1,337,960 1,867,701 Net unrealized appreciation on forward foreign currency exchange contracts .......... 13,579 2,509,791 Other assets ........................................................................ 18,227 18,714 ------------- ------------- Total assets ........................................................................ 470,240,156 442,551,779 ------------- ------------- LIABILITIES: Options written, at value (1) ....................................................... -- 148,050 Payable for fund shares redeemed .................................................... 576,731 2,152,240 Deferred capital gains tax payable .................................................. 102,996 25,245 Payable for investments purchased ................................................... 137,909 2,334,303 Premiums received for swap agreements ............................................... -- 164,352 Net unrealized depreciation on swap agreements ...................................... -- 48,132 Net unrealized depreciation on forward foreign currency exchange contracts .......... 58,583 1,016,490 Accrued advisory fee ................................................................ 333,822 224,814 Other accrued expenses .............................................................. 713,334 217,241 ------------- ------------- Total liabilities ................................................................... 1,923,375 6,330,867 ------------- ------------- NET ASSETS .......................................................................... $ 468,316,781 $ 436,220,912 ============= ============= NET ASSETS CONSIST OF: Paid-in capital ..................................................................... $ 789,390,016 $ 562,324,837 Distribution in excess of net investment income ..................................... (1,008,918) (491,282) Accumulated net realized loss on investments ........................................ (377,691,821) (166,065,402) Net unrealized appreciation of investments .......................................... 57,627,504 40,452,759 ------------- ------------- NET ASSETS .......................................................................... $ 468,316,781 $ 436,220,912 ============= ============= NET ASSETS BY SHARE CLASS: Institutional Shares ................................................................ $ 468,241,019 $ 416,309,279 A Shares ............................................................................ 75,762 19,911,633 ------------- ------------- $ 468,316,781 $ 436,220,912 ============= ============= SHARES OF BENEFICIAL INTEREST OUTSTANDING: ($0.01 par value, unlimited authorized shares): Institutional Shares ............................................................ 70,839,760 32,560,847 A Shares ........................................................................ 11,493 1,558,816 NET ASSET VALUE PER SHARE: Institutional Shares (net asset value (NAV), offering and redemption price) ............................................... $ 6.61 $ 12.79 ------------- ------------- A Shares (net asset value (NAV) and redemption price) ........................... $ 6.59 $ 12.77 ------------- ------------- A Shares (offering price -- NAV / 0.965) ........................................ $ 6.83 $ 13.23 ------------- ------------- * Investments in securities, at cost .............................................. $ 408,010,956 $ 392,561,773 ** Foreign currency at cost ........................................................ $ 1,671,204 $ 1,202,651 (1) Premiums received, options written .............................................. $ -- $ 217,617 The accompanying notes are an integral part of the financial statements. 129
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF OPERATIONS For the Six-Month Period Ended December 31, 2009 (Unaudited) SMALL-CAP MULTI-MANAGER STRATEGY FUND LARGE-CAP FUND ------------- -------------- INVESTMENT INCOME: Dividends .............................................................................. $ 510,438 $ 1,412,360 Securities lending income .............................................................. 42,282 8,712 Foreign tax withheld ................................................................... (60) -- ----------- ----------- Total investment income ................................................................ 552,660 1,421,072 ----------- ----------- EXPENSES: Advisory fees .......................................................................... 195,828 530,851 Administration fees .................................................................... 5,456 10,927 Sub-administration and accounting fees ................................................. 68,657 79,417 Custody fees ........................................................................... 38,474 20,649 Transfer agent fees .................................................................... 24,271 37,691 Distribution fees - A Shares ........................................................... 9 21 Professional fees ...................................................................... 36,005 43,985 Reports to shareholders ................................................................ 12,812 13,558 Registration fees ...................................................................... 13,829 24,455 Trustees' fees ......................................................................... 15,514 15,514 Compliance services .................................................................... 4,541 4,541 Other .................................................................................. 9,290 15,618 ----------- ----------- Total expenses before fee waivers ...................................................... 424,686 797,227 Advisory fees waived/reimbursed ........................................................ (334,638) (85,744) Sub-administration and accounting fees waived .......................................... (1,564) -- ----------- ----------- Total expenses, net .................................................................... 88,484 711,483 ----------- ----------- Net investment income .................................................................. 464,176 709,589 ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain on investments ....................................................... 2,299,043 6,546,539 Net change in unrealized appreciation (depreciation) on investments .................... 12,060,634 18,551,178 ----------- ----------- Net gain on investments ................................................................ 14,359,677 25,097,717 ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ...................................... $14,823,853 $25,807,306 =========== =========== The accompanying notes are an integral part of the financial statements. 130
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF OPERATIONS For the Six-Month Period Ended December 31, 2009 (Unaudited) MULTI-MANAGER MULTI-MANAGER INTERNATIONAL FUND REAL ASSET FUND ------------------ --------------- INVESTMENT INCOME: Dividends ....................................................................... $ 5,188,009 $ 4,971,472 Interest ........................................................................ -- 2,443,822 Foreign tax withheld ............................................................ (360,993) (56,412) ------------ ------------ Total investment income ......................................................... 4,827,016 7,358,882 ------------ ------------ EXPENSES: Advisory fees ................................................................... 2,011,374 1,266,170 Administration fees ............................................................. 35,220 32,323 Sub-administration and accounting fees .......................................... 335,187 149,523 Custody fees .................................................................... 662,968 125,984 Transfer agent fees ............................................................. 90,642 134,940 Distribution fees - A Shares .................................................... 97 25,365 Professional fees ............................................................... 60,568 110,281 Reports to shareholders ......................................................... 15,248 21,579 Registration fees ............................................................... 18,321 22,886 Trustees' fees .................................................................. 15,514 15,514 Compliance services ............................................................. 4,542 4,541 Other ........................................................................... 34,922 43,483 ------------ ------------ Total expenses before fee waivers ............................................... 3,284,603 1,952,589 Advisory fees waived ............................................................ (42,481) (9,131) ------------ ------------ Total expenses, net ............................................................. 3,242,122 1,943,458 ------------ ------------ Net investment income ........................................................... 1,584,894 5,415,424 ------------ ------------ NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain (loss) on investments ......................................... 27,709,959 (5,134,295) Net realized gain distributions received from investment companies ......................................................... -- 263,598 Net realized gain (loss) on foreign currency transactions ....................... 9,416 (2,973,161) Net realized gain (loss) on futures contracts ................................... (59,739) 147,106 Net realized gain on swap agreements ............................................ -- 118,826 Net realized gain on options written ............................................ -- 198,441 Net change in unrealized appreciation (depreciation) on investments and foreign currency ............................................. 64,236,324 47,157,541 ------------ ------------ Net gain on investments ......................................................... 91,895,960 39,778,056 ------------ ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............................... $ 93,480,854 $ 45,193,480 ============ ============ The accompanying notes are an integral part of the financial statements. 131
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS SMALL-CAP STRATEGY FUND ------------------------------------ FOR THE SIX-MONTH PERIOD ENDED FOR THE DECEMBER 31, YEAR ENDED 2009 JUNE 30, (UNAUDITED) 2009 ------------------ --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ........................................................... $ 464,176 $ 426,233 Net realized gain (loss) from investments ....................................... 2,299,043 (30,447,708) Net change in unrealized appreciation (depreciation) on investments ............................................................... 12,060,634 6,154,964 ------------ ------------ Net increase (decrease) in net assets resulting from operations .................... 14,823,853 (23,866,511) ------------ ------------ Distributions to shareholders from: Net investment income: Institutional Shares ......................................................... (492,903) (382,232) A Shares ..................................................................... (21) (93) ------------ ------------ Total distributions ................................................................ (492,924) (382,325) ------------ ------------ Fund share transactions (Note 7): Proceeds from shares sold: Institutional Shares ......................................................... 11,244,145 79,228,933 A Shares ..................................................................... -- 15,423 Proceeds from mergers (Note 8): Institutional Shares ......................................................... -- 3,350,514 A Shares ..................................................................... -- 6,272 Cost of shares issued on reinvestment of distributions: Institutional Shares ......................................................... 191,138 175,908 A Shares ..................................................................... 21 93 Cost of shares redeemed: Institutional Shares ......................................................... (16,297,597) (27,412,044) A Shares ..................................................................... (15,778) (8,771) ------------ ------------ Net increase (decrease) in net assets from Fund share transactions ................. (4,878,071) 55,356,328 ------------ ------------ Total increase in net assets ....................................................... 9,452,858 31,107,492 NET ASSETS: Beginning of Period ............................................................. 62,951,441 31,843,949 ------------ ------------ End of Period ................................................................... $ 72,404,299 $ 62,951,441 ============ ============ Undistributed net investment income ................................................ $ 4,588 $ 33,336 ------------ ------------ The accompanying notes are an integral part of the financial statements. 132
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS MULTI-MANAGER LARGE-CAP FUND ------------------------------------ FOR THE SIX-MONTH PERIOD ENDED FOR THE DECEMBER 31, YEAR ENDED 2009 JUNE 30, (UNAUDITED) 2009 ------------------ --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ........................................................... $ 709,589 $ 2,144,462 Net realized gain (loss) from investments ....................................... 6,546,539 (85,070,127) Net change in unrealized appreciation (depreciation) on investments ............................................................... 18,551,178 8,377,856 ------------ ------------- Net increase (decrease) in net assets resulting from operations .................... 25,807,306 (74,547,809) ------------ ------------- Distributions to shareholders from: Net investment income: Institutional Shares ......................................................... (897,530) (2,041,337) A Shares ..................................................................... (77) (351) ------------ ------------- Total distributions ................................................................ (897,607) (2,041,688) ------------ ------------- Fund share transactions (Note 7): Proceeds from shares sold: Institutional Shares ......................................................... 26,203,850 55,171,950 A Shares ..................................................................... -- -- Proceeds from mergers (Note 8): Institutional shares ......................................................... -- 8,882,355 A Shares ..................................................................... -- 8,250 Cost of shares issued on reinvestment of distributions: Institutional Shares ......................................................... 546,341 1,049,841 A Shares ..................................................................... 77 351 Cost of shares redeemed: Institutional Shares ......................................................... (32,692,357) (99,226,797) A Shares ..................................................................... (32,511) (5,113) ------------ ------------- Net decrease in net assets from Fund share transactions ............................ (5,974,600) (34,119,163) ------------ ------------- Total increase (decrease) in net assets ............................................ 18,935,099 (110,708,660) NET ASSETS: Beginning of Period ............................................................. 131,722,476 242,431,136 ------------ ------------- End of Period ................................................................... $150,657,575 $ 131,722,476 ============ ============= Undistributed (distributions in excess of) net investment income ........................................................... $ (14,204) $ 173,814 ------------ ------------- The accompanying notes are an integral part of the financial statements. 133
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS MULTI-MANAGER INTERNATIONAL FUND ------------------------------------ FOR THE SIX-MONTH PERIOD ENDED FOR THE DECEMBER 31, YEAR ENDED 2009 JUNE 30, (UNAUDITED) 2009 ------------------ --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ........................................................... $ 1,584,894 $ 8,755,953 Net realized gain (loss) from investments and foreign currency .................. 27,659,636 (396,260,153) Net change in unrealized appreciation (depreciation) on investments and foreign currency ............................................. 64,236,324 30,879,367 ------------- -------------- Net increase (decrease) in net assets resulting from operations .................... 93,480,854 (356,624,833) ------------- -------------- Distributions to shareholders from: Net investment income: Institutional Shares ......................................................... (2,304,313) (8,906,330) A Shares ..................................................................... (307) (1,471) Net realized gains: Institutional Shares ......................................................... -- (15,211,656) A Shares ..................................................................... -- (2,440) ------------- -------------- Total distributions ................................................................ (2,304,620) (24,121,897) ------------- -------------- Fund share transactions (Note 7): Proceeds from shares sold: Institutional Shares ......................................................... 41,607,021 165,820,982 A Shares ..................................................................... 13,914 10,120 Cost of shares issued on reinvestment of distributions: Institutional Shares ......................................................... 1,001,109 16,726,380 A Shares ..................................................................... 307 3,911 Cost of shares redeemed: Institutional Shares ......................................................... (61,063,851) (442,242,347) A Shares ..................................................................... (34,124) (12,867) ------------- -------------- Net decrease in net assets from Fund share transactions ............................ (18,475,624) (259,693,821) ------------- -------------- Total increase (decrease) in net assets ............................................ 72,700,610 (640,440,551) NET ASSETS: Beginning of Period ............................................................. 395,616,171 1,036,056,722 ------------- -------------- End of Period ................................................................... $ 468,316,781 $ 395,616,171 ============= ============== Distributions in excess of net investment income ................................... $ (1,008,918) $ (289,192) ------------- -------------- The accompanying notes are an integral part of the financial statements. 134
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL STATEMENTS -- CONTINUED ============================================================================================================================ STATEMENTS OF CHANGES IN NET ASSETS MULTI-MANAGER REAL ASSET FUND ------------------------------------ FOR THE SIX-MONTH PERIOD ENDED FOR THE DECEMBER 31, YEAR ENDED 2009 JUNE 30, (UNAUDITED) 2009 ------------------ --------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ........................................................... $ 5,415,424 $ 10,547,643 Net realized loss from investments .............................................. (7,379,485) (128,376,708) Net change in unrealized appreciation (depreciation) on investments .................................................................. 47,157,541 (110,708,372) ------------ ------------- Net increase (decrease) in net assets resulting from operations .................... 45,193,480 (228,537,437) ------------ ------------- Distributions to shareholders from: Net investment income: Institutional Shares ......................................................... (4,943,951) (17,299,904) A Shares ..................................................................... (218,528) (1,213,782) Net realized gains: Institutional Shares ......................................................... -- (30,577,405) A Shares ..................................................................... -- (2,341,818) ------------ ------------- Total distributions ................................................................ (5,162,479) (51,432,909) ------------ ------------- Fund share transactions (Note 7): Proceeds from shares sold: Institutional Shares ......................................................... 71,768,270 157,072,906 A Shares ..................................................................... 7,384,003 49,233,830 Cost of shares issued on reinvestment of distributions: Institutional Shares ......................................................... 1,451,974 27,335,986 A Shares ..................................................................... 203,269 3,373,722 Cost of shares redeemed: Institutional Shares ......................................................... (63,301,058) (336,536,005) A Shares ..................................................................... (9,652,739) (47,351,338) ------------ ------------- Net increase (decrease) in net assets from Fund share transactions ................. 7,853,719 (146,870,899) ------------ ------------- Total increase (decrease) in net assets ............................................ 47,884,720 (426,841,245) NET ASSETS: Beginning of Period ............................................................. 388,336,192 815,177,437 ------------ ------------- End of Period ................................................................... $436,220,912 $ 388,336,192 ============ ============= Distributions in excess of net investment income ................................... $ (491,282) $ (744,227) ------------ ------------- The accompanying notes are an integral part of the financial statements. 135
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL HIGHLIGHTS ============================================================================================================================ The following tables include selected data for a share outstanding throughout each period and other performance information derived from the financial statements. The total returns in the tables represent the rate an investor would have earned or lost on an investment in the Funds (assuming reinvestment of all dividends and distributions). This information should be read in conjunction with the financial statements and notes thereto. FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ------------------------------------------------ (UNAUDITED) 2009 2008 2007 2006 2005 ------------ ------- ------- ------- ------- -------- SMALL-CAP STRATEGY FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD .................................. $ 6.57 $ 9.16 $ 14.11 $ 14.20 $ 13.92 $ 12.80 ------- ------- ------- ------- ------- ------- INVESTMENT OPERATIONS: Net investment income (loss)(1) ...................... 0.05 0.05 (0.02) 0.02 (0.04) (0.02) Net realized and unrealized gain (loss) on investments ............................. 1.49 (2.60) (2.25) 1.89 1.43 1.46 ------- ------- ------- ------- ------- ------- Total from investment operations ..................................... 1.54 (2.55) (2.27) 1.91 1.39 1.44 ------- ------- ------- ------- ------- ------- DISTRIBUTIONS: From net investment income ........................... (0.05) (0.04) -- (0.01) -- -- From net realized gains .............................. -- -- (2.68) (1.99) (1.11) (0.32) ------- ------- ------- ------- ------- ------- Total distributions ............................... (0.05) (0.04) (2.68) (2.00) (1.11) (0.32) ------- ------- ------- ------- ------- ------- NET ASSET VALUE -- END OF PERIOD ........................ $ 8.06 $ 6.57 $ 9.16 $ 14.11 $ 14.20 $ 13.92 ======= ======= ======= ======= ======= ======= TOTAL RETURN ............................................ 23.52%** (27.72)% (18.13)% 14.42% 10.42% 11.29% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(2) Expenses: Including expense limitations .................................... 0.25%* 0.75% 1.25% 1.25% 1.25% 1.25% Excluding expense limitations .................................... 1.19%* 1.61% 1.92% 1.57% 1.49% 1.58% Net investment income (loss) ......................... 1.30%* 0.81% (0.15)% 0.13% (0.31)% (0.16)% Portfolio turnover rate .............................. 32%** 205% 134% 127% 96% 44% Net assets at the end of period (000 omitted) ........................................ $72,404 $62,938 $31,834 $41,899 $55,357 $53,271 - ---------- * Annualized. ** Not annualized. (1) The net investment income (loss) per share was calculated using the average shares outstanding method. (2) Prior to July 1, 2005, the Fund operated in a "fund-of-funds" structure. The expense and net investment loss ratios include expenses allocated from the underlying funds, WT Investment Trust I--Small Cap Multi-Manager Series and Small Cap Quantitative Series (the "Series") and the portfolio turnover rate reflects the Fund's investment activity in the Series. Effective July 1, 2005, the Fund no longer operates in a "fund-of-funds" structure. The accompanying notes are an integral part of the financial statements. 136
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 --------------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- -------- -------- -------- ------- MULTI-MANAGER LARGE-CAP FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ................................ $ 8.61 $ 12.28 $ 14.40 $ 12.33 $ 12.05 $ 11.27 -------- -------- -------- -------- -------- ------- INVESTMENT OPERATIONS: Net investment income (1) .......................... 0.05 0.12 0.09 0.10 0.08 0.10 Net realized and unrealized gain (loss) on investments ........................... 1.70 (3.68) (1.57) 2.16 0.69 0.77 -------- -------- -------- -------- -------- ------- Total from investment operations ................................... 1.75 (3.56) (1.48) 2.26 0.77 0.87 -------- -------- -------- -------- -------- ------- DISTRIBUTIONS: From net investment income ......................... (0.06) (0.11) (0.09) (0.09) (0.08) (0.09) From net realized gains ............................ -- -- (0.55) (0.10) (0.41) -- -------- -------- -------- -------- -------- ------- Total distributions ............................. (0.06) (0.11) (0.64) (0.19) (0.49) (0.09) -------- -------- -------- -------- -------- ------- NET ASSET VALUE -- END OF PERIOD ...................... $ 10.30 $ 8.61 $ 12.28 $ 14.40 $ 12.33 $ 12.05 ======== ======== ======== ======== ======== ======= TOTAL RETURN .......................................... 20.37%** (28.94)% (10.75)% 18.45% 6.47% 7.75% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(2) Expenses: Including expense limitations .................................. 1.00%* 1.00% 0.93% 0.86% 1.00% 1.00% Excluding expense limitations .................................. 1.12%* 1.18% 1.00% 0.93% 1.07% 1.29% Net investment income .............................. 1.00%* 1.27% 0.67% 0.72% 0.67% 0.85% Portfolio turnover rate ............................ 55%** 224% 127% 96% 57% 42% Net assets at the end of period (000 omitted) ...................................... $150,655 $131,692 $242,391 $252,756 $127,610 $77,798 - ---------- * Annualized. ** Not annualized. (1) The net investment income per share was calculated using the average shares outstanding method. (2) Prior to July 1, 2005, the Fund operated in a "fund-of-funds" structure. The expense and net investment income ratios include expenses allocated from the underlying funds, WT Investment Trust I--Large Cap Multi-Manager Series and Large Cap Quantitative Series (the "Series") and the portfolio turnover rate reflects the Fund's investment activity in the Series. Effective July 1, 2005, the Fund no longer operates in a "fund-of-funds" structure. The accompanying notes are an integral part of the financial statements. 137
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE FOR THE SIX-MONTH PERIOD PERIOD ENDED DECEMBER 20, 2005(1) DECEMBER 31, FOR THE YEARS ENDED JUNE 30, THROUGH 2009 ---------------------------- JUNE 30, (UNAUDITED) 2009 2008 2007 2006 ------------ ------- ------ ------- -------------------- MULTI-MANAGER LARGE-CAP FUND -- A SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ................................ $ 8.61 $ 12.28 $ 14.41 $12.33 $12.21 ------ ------- ------- ------ ------ INVESTMENT OPERATIONS: Net investment income (2) .......................... 0.03 0.10 0.05 0.06 0.03 Net realized and unrealized gain (loss) on investments ........................... 1.72 (3.68) (1.56) 2.18 0.10 ------ ------- ------- ------ ------ Total from investment operations ................................... 1.75 (3.58) (1.51) 2.24 0.13 ------ ------- ------- ------ ------ DISTRIBUTIONS: From investment income ............................. (0.04) (0.09) (0.07) (0.06) (0.01) From net realized gains ............................ -- -- (0.55) (0.10) -- ------ ------- ------- ------ ------ Total distributions ............................. (0.04) (0.09) (0.62) (0.16) (0.01) ------ ------- ------- ------ ------ NET ASSET VALUE -- END OF PERIOD ...................... $10.32 $ 8.61 $ 12.28 $14.41 $12.33 ====== ======= ======= ====== ====== TOTAL RETURN (3) ...................................... 20.55%** (29.11)% (10.98) % 18.26% 1.07%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations .................................. 1.25%* 1.25% 1.18% 1.11% 1.25%* Excluding expense limitations .................................. 1.36%* 1.43% 1.30% 1.18% 1.28%* Net investment income .............................. 0.67%* 1.10% 0.39% 0.47% 0.46%* Portfolio turnover rate ............................ 55%** 224% 127% 96% 57%(4) Net assets at the end of period (000 omitted) ...................................... $ 2 $ 30 $ 41 $ 12 $ 10 - ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) The net investment income per share was calculated using the average shares outstanding method. (3) Total Return does not reflect the impact of the maximum front-end sales load of 3.50%. If reflected, the return would be lower. (4) Represents the portfolio turnover rate for the Fund for the year ended June 30, 2006. The accompanying notes are an integral part of the financial statements. 138
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 ------------------------------------------------------ (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- ---------- ---------- -------- -------- MULTI-MANAGER INTERNATIONAL FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ................................ $ 5.37 $ 8.51 $ 11.76 $ 9.92 $ 8.53 $ 7.39 -------- -------- ---------- ---------- -------- -------- INVESTMENT OPERATIONS: Net investment income(1) ........................... 0.02 0.10 0.18 0.16 0.12 0.14 Net realized and unrealized gain (loss) on investments and foreign currency ............................ 1.25 (2.93) (1.24) 2.74 2.08 1.07 -------- -------- ---------- ---------- -------- -------- Total from investment operations ................................... 1.27 (2.83) (1.06) 2.90 2.20 1.21 -------- -------- ---------- ---------- -------- -------- DISTRIBUTIONS: From net investment income ......................... (0.03) (0.11) (0.27) (0.13) (0.20) (0.07) From net realized gains ............................ -- (0.20) (1.92) (0.93) (0.61) -- -------- -------- ---------- ---------- -------- -------- Total distributions ............................. (0.03) (0.31) (2.19) (1.06) (0.81) (0.07) -------- -------- ---------- ---------- -------- -------- NET ASSET VALUE -- END OF PERIOD ...................... $ 6.61 $ 5.37 $ 8.51 $ 11.76 $ 9.92 $ 8.53 ======== ======== ========== ========== ======== ======== TOTAL RETURN .......................................... 23.71%** (32.82)% (10.49)% 30.57% 26.70% 16.41% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(2) Expenses: Including expense limitations .................................. 1.41%* 1.40% 1.15% 1.06% 1.09% 1.00% Excluding expense limitations .................................. 1.43%* 1.42% 1.16% 1.06% 1.10% 1.00% Net investment income .............................. 0.69%* 1.64% 1.75% 1.49% 1.24% 1.76% Portfolio turnover rate ............................ 56%** 136% 124% 89% 122% 71% Net assets at the end of period (000 omitted) ...................................... $468,241 $395,536 $1,035,939 $1,129,534 $819,422 $426,581 - ---------- * Annualized. ** Not annualized. (1) The net investment income per share was calculated using the average shares outstanding method. (2) Prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I--International Multi-Manager Series (the "Series") and the portfolio turnover rate reflects investment activity of the Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. The accompanying notes are an integral part of the financial statements. 139
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE FOR THE SIX-MONTH PERIOD PERIOD ENDED DECEMBER 20, 2005(1) DECEMBER 31, FOR THE YEARS ENDED JUNE 30, THROUGH 2009 ---------------------------- JUNE 30, (UNAUDITED) 2009 2008 2007 2006 ------------ ------- ------- -------- -------------------- MULTI-MANAGER INTERNATIONAL FUND -- A SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ................................ $ 5.36 $ 8.50 $ 11.75 $ 9.92 $ 9.08 ------ ------- ------- ------ ------ INVESTMENT OPERATIONS: Net investment income(2) ........................... 0.01 0.08 0.15 0.16 0.09 Net realized and unrealized gain (loss) on investments and foreign currency ................................ 1.24 (2.92) (1.23) 2.72 0.84 ------ ------- ------- ------ ------ Total from investment operations ................................... 1.25 (2.84) (1.08) 2.88 0.93 ------ ------- ------- ------ ------ DISTRIBUTIONS: From investment income ............................. (0.02) (0.10) (0.25) (0.12) (0.09) From net realized gains ............................ -- (0.20) (1.92) (0.93) -- ------ ------- ------- ------ ------ Total distributions ............................. (0.02) (0.30) (2.17) (1.05) (0.09) ------ ------- ------- ------ ------ NET ASSET VALUE -- END OF PERIOD ...................... $ 6.59 $ 5.36 $ 8.50 $11.75 $ 9.92 ====== ======= ======= ====== ====== TOTAL RETURN(3) ....................................... 23.43%** (32.95)% (10.66)% 30.30% 10.27%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations .................................. 1.66%* 1.65% 1.40% 1.37% 1.34%* Excluding expense limitations .................................. 1.68%* 1.72% 1.40% 1.37% 1.36%* Net investment income .............................. 0.45%* 1.53% 1.46% 1.54% 1.76%* Portfolio turnover rate ............................ 56%** 136% 124% 89% 122%(4) Net assets at the end of period (000 omitted) ...................................... $ 76 $ 80 $ 118 $ 122 $ 18 - ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) The net investment income per share was calculated using the average shares outstanding method. (3) Total return does not reflect the impact of the maximum front-end sales load of 3.50%. If reflected, the return would be lower. (4) Represents the portfolio turnover rate for the Fund for the year ended June 30, 2006. The accompanying notes are an integral part of the financial statements. 140
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE SIX-MONTH PERIOD ENDED DECEMBER 31, FOR THE YEARS ENDED JUNE 30, 2009 --------------------------------------------------- (UNAUDITED) 2009 2008 2007 2006 2005 ------------ -------- -------- -------- -------- ------- MULTI-MANAGER REAL ASSET FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ................................ $ 11.61 $ 17.75 $ 15.33 $ 15.06 $ 14.18 $ 11.77 -------- -------- -------- -------- -------- ------- INVESTMENT OPERATIONS: Net investment income(1) ........................... 0.16 0.28 0.60 0.50 0.50 0.31 Net realized and unrealized gain (loss) on investments and foreign currency ............................ 1.17 (4.99) 2.71 0.24 1.72 3.12 -------- -------- -------- -------- -------- ------- Total from investment operations ................................... 1.33 (4.71) 3.31 0.74 2.22 3.43 -------- -------- -------- -------- -------- ------- DISTRIBUTIONS: From net investment income ......................... (0.15) (0.61) (0.56) (0.36) (0.31) (0.35) From net realized gains ............................ -- (0.82) (0.33) (0.11) (1.03) (0.67) -------- -------- -------- -------- -------- ------- Total distributions ............................. (0.15) (1.43) (0.89) (0.47) (1.34) (1.02) -------- -------- -------- -------- -------- ------- NET ASSET VALUE -- END OF PERIOD ...................... $ 12.79 $ 11.61 $ 17.75 $ 15.33 $ 15.06 $ 14.18 ======== ======== ======== ======== ======== ======= TOTAL RETURN .......................................... 11.49%** (26.59)% 22.27% 4.89% 16.49% 30.00% RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA:(2) Expenses: Including expense limitations ................... 0.91%* 0.82% 0.65% 0.63% 0.98% 1.17% Excluding expense limitations ................... 0.91%* 0.82% 0.65% 0.65% 1.04% 1.29% Net investment income .............................. 2.57%* 2.09% 3.64% 3.23% 3.38% 2.36% Portfolio turnover rate ............................ 66%** 115% 72% 23% 33% 75% Net assets at the end of period (000 omitted) ...................................... $416,309 $368,263 $782,540 $555,007 $280,049 $58,963 - --------- * Annualized. ** Not annualized. (1) The net investment income per share was calculated using the average shares outstanding method. (2) Prior to July 1, 2005, the Fund operated as a feeder fund in a master-feeder structure. The expense and net investment income ratios include expenses allocated from the master fund, WT Investment Trust I--Real Estate Series (the "Series"), and the portfolio turnover rate reflects the investment activity of the Series. Effective July 1, 2005, the Fund no longer operates in a master-feeder structure. The accompanying notes are an integral part of the financial statements. 141
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- FINANCIAL HIGHLIGHTS -- CONTINUED ============================================================================================================================ FOR THE FOR THE SIX-MONTH PERIOD PERIOD ENDED DECEMBER 20, 2005(1) DECEMBER 31, FOR THE YEARS ENDED JUNE 30, THROUGH 2009 ---------------------------- JUNE 30, (UNAUDITED) 2009 2008 2007 2006 ------------ ------- ------- -------- -------------------- MULTI-MANAGER REAL ASSET FUND -- A SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ................................ $ 11.60 $ 17.75 $ 15.34 $15.07 $13.77 ------- ------- ------- ------ ------ INVESTMENT OPERATIONS: Net investment income(2) ........................... 0.15 0.15 0.63 0.58 0.26 Net realized and unrealized gain (loss) on investments and foreign currency ............................ 1.16 (4.89) 2.65 0.12 1.19 ------- ------- ------- ------ ------ Total from investment operations ................................... 1.31 (4.74) 3.28 0.70 1.45 ------- ------- ------- ------ ------ DISTRIBUTIONS: From investment income ............................. (0.14) (0.59) (0.54) (0.32) (0.15) From net realized gains ............................ -- (0.82) (0.33) (0.11) -- ------- ------- ------- ------ ------ Total distributions ............................. (0.14) (1.41) (0.87) (0.43) (0.15) ------- ------- ------- ------ ------ NET ASSET VALUE -- END OF PERIOD ...................... $ 12.77 $ 11.60 $ 17.75 $15.34 $15.07 ======= ======= ======= ====== ====== TOTAL RETURN(3) ....................................... 11.29%** (26.78)% 22.00% 4.62% 10.50%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations .................................. 1.16%* 1.07% 0.90% 0.89% 1.23%* Excluding expense limitations .................................. 1.16%* 1.09% 0.99% 0.90% 1.27%* Net investment income .............................. 2.48%* 1.15% 3.61% 3.74% 3.29%* Portfolio turnover rate ............................ 66%** 115% 72% 23% 33%(4) Net assets at the end of period (000 omitted) ...................................... $19,912 $20,073 $32,637 $ 128 $ 11 - ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) The net investment income per share was calculated using the average shares outstanding method. (3) Total return does not reflect the impact of the maximum front-end sales load of 3.50%. If reflected, the return would be lower. (4) Represents the portfolio turnover rate for the Fund for the year ended June 30, 2006. The accompanying notes are an integral part of the financial statements. 142
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) ============================================================================================================================ 1. DESCRIPTION OF THE FUND. WT Mutual Fund (the "Trust") is registered under the Investment Company Act of 1940, as amended, (the "1940 Act") as an open-end management investment company and was organized as a Delaware statutory trust on June 1, 1994. The Amended and Restated Agreement and Declaration of Trust permits the Board of Trustees (the "Trustees") to establish series of shares each of which constitutes a series separate and distinct from the shares of other series. As of December 31, 2009, the Trust offered 12 series, four of which are included in these financial statements. The four series are as follows: Wilmington Small-Cap Strategy Fund ("Small-Cap Strategy Fund"), Wilmington Multi-Manager Large-Cap Fund ("Large-Cap Fund"), Wilmington Multi-Manager International Fund ("International Fund"), and Wilmington Multi-Manager Real Asset Fund ("Real Asset Fund") (each a "Fund" and collectively, the "Funds"). Each Fund offers two classes of shares: Institutional Shares and A Shares. All classes of shares have identical voting, dividend and liquidation rights. Institutional Shares are offered to retirement plans and other institutional investors. A Shares are available to all investors and are subject to a Rule 12b-1 distribution fee and a maximum front-end sales charge of 3.50%. 2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the significant accounting policies of the Funds: SECURITY VALUATION. Securities held by the Funds which are listed on a securities exchange and for which market quotations are available are valued at the last quoted sale price of the day, or, if there is no such reported sale, securities are valued at the mean between the most recent quoted bid and ask prices. Securities traded on The NASDAQ Stock Market, Inc. ("NASDAQ") are valued in accordance with the NASDAQ Official Closing Price, which may not be the last sale price. Price information for listed securities is taken from the exchange where the security is primarily traded. Unlisted securities for which market quotations are readily available are valued at the most recent bid prices. Securities with a remaining maturity of 60 days or less are valued at amortized cost, which approximates market value, unless the Trustees determine that this does not represent fair value. Futures contracts are valued at the most recent settlement price for the day. Forward foreign currency exchange contracts are valued based on the price of the underlying currency at the prevailing (interpolated) exchange rate, which is a combination of the spot currency rate and the forward currency rate. Securities that do not have a readily available current market value are valued in good faith by using procedures adopted by the Trustees. When a Fund uses fair value pricing to determine NAV, securities will not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method that the Trustees believe accurately reflects fair value. A Fund may fair value foreign securities if significant events that appear likely to affect the value of those securities occur between the time a foreign exchange closes and the time that the Fund prices its shares. Significant events may include: (i) events impacting a single issuer, (ii) governmental actions that affect securities in one sector or country, (iii) natural disasters or armed conflict, or (iv) significant domestic or foreign market fluctuations. The Funds' policy is intended to result in a calculation of a Fund's NAV that fairly reflects security values as of the time of pricing. However, fair values determined pursuant to a Fund's procedures may not accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing. In addition, foreign securities held by a Fund may trade on weekends or other days when the Fund does not calculate NAV. As a result, the market value of these investments may change on days when shares of the Fund cannot be bought or sold. FOREIGN CURRENCY TRANSLATIONS. The books and records of the Funds are maintained in U.S. dollars. Transactions denominated in foreign currencies are recorded at the prevailing exchange rates on the valuation date. The value of all assets and liabilities denominated in foreign currencies are translated into 143
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ U.S. dollars at the exchange rate of such currencies against the U.S. dollar daily. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of those investments. Such fluctuations are included with the net realized and unrealized gain or loss from investments. The Funds utilize a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - Level 1 -- quoted prices in active markets for identical securities - Level 2 -- prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) - Level 3 -- prices determined using significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) A summary of the inputs used to value the Funds' net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. FEDERAL INCOME TAXES. Each Fund is treated as a separate entity for Federal income tax purposes and intends to continue to qualify as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its income to its shareholders. Therefore, no Federal income tax provision has been made. Tax positions taken or expected to be taken in the course of preparing the Funds' tax returns are evaluated to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Fund's tax positions and has concluded that no provision for income tax is required in the Fund's financial statements. The Funds' federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. SECURITY TRANSACTIONS AND INVESTMENT INCOME. Investment security transactions are accounted for on a trade date basis for financial reporting purposes, each Fund uses the specific identification method for determining realized gains and losses on investments for both financial and Federal income tax reporting purposes. Interest income is recorded on the accrual basis and includes the amortization of premium and the accretion of discount. Dividend income is recorded on the ex-dividend date. Foreign dividends are also recorded on the ex-dividend date or as soon after the ex-dividend date that the Funds are aware of such dividends, net of all non-rebatable tax withholdings. Withholding taxes on foreign dividends have been recorded in accordance with the Funds' understanding of the applicable country's tax rules and rates. Distributions received from investments in real estate investment trusts are recorded as dividend income on the ex-dividend date, subject to reclassification upon notice of the character of such distributions by the issuer. The Funds record expenses as incurred. Common expenses of the Trust are allocated on a pro-rata basis among the Series based on relative net assets. CLASS ACCOUNTING. In calculating net asset value per share for each class, investment income, realized and unrealized gains and losses and expenses, other than class specific expenses, are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Expenses relating to a specific class are charged directly to that class. 144
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ REPURCHASE AGREEMENTS. The Real Asset Fund, through its custodian, receives delivery of the underlying securities used to collateralize repurchase agreements, the market value of which is required to be in an amount at least equal to 101% of the resale price. The Fund's investment adviser is responsible for determining that the market value of these underlying securities is maintained at all times at a level at least equal to 101% of the resale price. In the event of default of the obligation to repurchase, the Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Provisions of the agreement require that the market value of the collateral is sufficient in the event of default; however, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. SHORT SALES. The Real Asset Fund may sell securities short. A short sale is a transaction in which the Fund sells a security it does not own in anticipation of a decline in market price. To sell a security short, the Fund must borrow the security. The Fund's obligation to replace the security borrowed and sold short will be fully collateralized at all times by the proceeds from the short sale retained by the broker and by cash and securities deposited in a segregated account with the Fund's custodian. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will realize a loss, and if the price declines during the period, the Fund will realize a gain. Any realized gain will be decreased, and any realized loss increased, by the amount of transaction costs. On ex-dividend date, dividends on short sales are recorded as an expense to the Fund. DISTRIBUTIONS TO SHAREHOLDERS. Distributions from net investment income, if any, are declared and paid to shareholders quarterly. Distributions from net realized gains, if any, are declared and paid to shareholders annually. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3. DERIVATIVE FINANCIAL INSTRUMENTS. Disclosures about derivative instruments and hedging activities are intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity's results of operations and financial position. Summarized below are the specific types of derivative instruments used by the Funds: FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS. In connection with purchases and sales of securities denominated in a foreign currency, the International Fund and Real Asset Fund may enter into forward foreign currency exchange contracts. Additionally, from time to time it may enter into these contracts to hedge certain foreign currency assets. Certain risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts. Realized gains or losses arising from such transactions are included in net realized gain (loss) from foreign currency transactions. FUTURES TRANSACTIONS. The Funds may invest in financial futures contracts for the purposes of hedging its existing portfolio. Financial futures contracts are contracts for the delivery of securities at a specified future date at an agreed upon price or yield and are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Upon entering into a futures contract, the Fund deposits and maintains as collateral such initial margin as required. Subsequent payments, which are 145
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ dependent on the daily fluctuations in the value of the underlying security, or securities, are made or received by the Fund each day (daily variation margin) and are recorded as unrealized gains or losses until the contracts are closed. The risks of entering into futures contracts include, but are not limited to, (i) the possibility that there will be an imperfect price correlation between the futures and the underlying securities; (ii) the possibility 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; and (iii) the possibility that the Fund could lose more than the original margin deposit required to initiate a futures transaction. OPTIONS: Certain Funds may either purchase or write options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign exchange rates, with respect to securities which the Fund currently owns or intends to purchase. The Fund's principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Fund has realized a gain or loss. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in net realized gain or loss on investment transactions. Gain or loss on written options is presented separately as net realized gain or loss on options written. The Fund, as writer of an option, may have no control over whether the underlying securities may be sold (called) or purchased (put). As a result, the Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. The Fund, as purchaser of an over-the-counter option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts. The Real Asset Fund had transactions in options written during the six-month period ended December 31, 2009 as follows: NUMBER OF PREMIUMS CONTRACTS RECEIVED --------- ---------- Options outstanding at June 30, 2009............................................................. 48 $ 19,823 Options written.................................................................................. 4,528 396,235 Options expired.................................................................................. (1,958) (198,441) Options exercised................................................................................ -- -- ------ --------- Options outstanding at December 31, 2009......................................................... 2,618 $ 217,617 ====== ========= SWAP AGREEMENTS: Certain Funds may enter into credit default, interest rate, total return and other forms of swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on investments. Payments received or paid by the Fund are recorded as realized gains or losses upon termination or maturity of the swap. Risk of loss may exceed amounts recognized on the statements of assets and liabilities. Swap agreements outstanding at period end, if any, are listed on the Schedule of Investments. 146
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ INTEREST RATE SWAPS: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. The Fund may use interest rate swaps to either maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments using interest rate swap contracts. The Fund's maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract's remaining life. This risk may be mitigated by having a master netting arrangement between the Fund and the counterparty which may permit the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund, to cover the Fund's exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. TOTAL RETURN SWAP AGREEMENTS: Total return swap agreements on commodities involve commitments where exchanged cash flows based on the price of the commodity and in return receives either fixed or determined by floating price or rate. One party would receive payments based on the market value of the commodity involved and pay a fixed amount. Total return swap agreements on indices involve commitments to pay interest in exchange for a market-linked return. One counterparty pays out the total return of a specific reference asset, which may be an equity, index, or bond, and in return receives a regular stream of payments. To the extent the total return of the security or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, a Fund will receive a payment from or make a payment to the counterparty. WARRANTS AND RIGHTS: Certain Funds hold warrants and rights acquired either through a direct purchase, including as part of private placement, or pursuant to corporate actions. Warrants and rights entitle the holder to buy a proportionate amount of common stock at a specific price and time through the expiration dates. Such warrants and rights are held as long positions by the Fund until exercised, sold or expired. Equity-linked warrants are purchased in order to own local exposure to certain countries in which the Funds are not locally registered. Warrants and rights are valued at fair value in accordance with the Board of Trustees' approved fair valuation procedures. The following is a summary of the location of derivatives on the Funds' Statements of Assets and Liabilities as of December 31, 2009. LOCATION ON THE STATEMENTS OF ASSETS AND LIABILITIES -------------------------------------------------------------------------- DERIVATIVE TYPE ASSET DERIVATIVES LIABILITY DERIVATIVES - ---------------------------------------------------------------------------------------------------------------------------- Interest rate contracts Investments in securities, at value. Options written, at value. Net unrealized appreciation on Net unrealized depreciation on swap agreements. Variation swap agreements. Variation margin margin receivable on futures payable on futures contracts. contracts. - ---------------------------------------------------------------------------------------------------------------------------- Foreign exchange Net unrealized appreciation on Net unrealized depreciation on contracts forward foreign currency forward foreign currency exchange exchange contracts. contracts. Equity contracts Investments in securities, at Variation margin payable on futures value. Variation margin contracts. receivable on futures contracts. 147
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ The following is a summary of the Funds' derivative instrument holdings categorized by primary risk exposure as of December 31, 2009: ASSET DERIVATIVES VALUE ----------------------------------- INTEREST FOREIGN TOTAL VALUE AT EQUITY RATE EXCHANGE PORTFOLIO DECEMBER 31, 2009 CONTRACTS CONTRACTS CONTRACTS --------------------------------------------------------------- ----------------- ---------- --------- ---------- International Fund $6,377,641 $6,364,062 $ -- $ 13,579 Real Asset Fund $2,860,987 $ -- $351,196 $2,509,791 LIABILITY DERIVATIVES VALUE ------------------------------------ INTEREST FOREIGN TOTAL VALUE AT EQUITY RATE EXCHANGE PORTFOLIO DECEMBER 31, 2009 CONTRACTS CONTRACTS CONTRACTS -------------------------------------------------------------- ----------------- ---------- --------- ----------- International Fund $ (58,583) $-- $ -- $ (58,583) Real Asset Fund $(1,274,573) $-- $(258,083) $(1,016,490) The following tables set forth by primary risk exposure the Funds' realized gains (losses) by type of derivative contract for the six-month period ended December 31, 2009: REALIZED GAIN (LOSS) ON DERIVATIVES RECOGNIZED IN INCOME -------------------------------------------------------- INTEREST FOREIGN EQUITY RATE EXCHANGE PORTFOLIO TOTAL CONTRACTS CONTRACTS CONTRACTS -------------------------------------------------------------- ------------ --------- --------- ------------ International Fund $ (167,304) $100,659 $ -- $ (267,963) Real Asset Fund $(5,870,909) $ -- $469,634 $(6,340,543) CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON DERIVATIVES RECOGNIZED IN INCOME ------------------------------------------------------------------------------------ INTEREST FOREIGN EQUITY RATE EXCHANGE PORTFOLIO TOTAL CONTRACTS CONTRACTS CONTRACTS ---------------------------------- ------------ --------- --------- ----------- International Fund $ 543,881 $545,716 $ -- $ (1,835) Real Asset Fund $3,967,615 $ -- $284,961 $3,682,654 4. ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES. Rodney Square Management Corporation ("RSMC"), a wholly owned subsidiary of Wilmington Trust Corporation, serves as an investment adviser to each Fund. RSMC allocates each Fund's assets among the sub-advisers shown below and oversees their investment activities. In addition to serving as a sub-advisor to the Large-Cap and Small-Cap Funds, Wilmington Trust Investment Management, LLC ("WTIM"), also a wholly owned subsidiary of Wilmington Trust Corporation and under common control with RSMC, also provides certain investment services, information, advice, assistance and facilities and performs research, statistical and investment services pursuant to a separate sub-advisory agreement among the Trust, RSMC and WTIM, for which it receives a fee from RSMC as agreed to from time to time with RSMC. Each Fund pays RSMC and each sub-adviser a fee for their services as follows: 148
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ GROSS FEES FEES WAIVED % OF AVERAGE DAILY NET ASSETS -------- --------- --------------------------------- SMALL-CAP STRATEGY FUND - ----------------------- RSMC $124,606 $(334,638) 0.35% of average daily net assets WTIM-- Quantitative strategy 71,222 -- 0.20% on the first $1 billion in assets allocated to the Quantitative strategy; 0.15% on the next $1 billion; and 0.10% over $2 billion LARGE-CAP FUND - -------------- RSMC 249,559 (85,744) 0.35% of average daily net assets Armstrong Shaw Associates Inc. ("ASA")(1) 35,722 -- 0.50% of the first $25 million under ASA's management; 0.45% of the next $25 million; and 0.40% over $50 million Montag & Caldwell, Inc. ("M&C")(1) 90,747 -- 0.65% of the first $10 million under M&C's management; 0.50% of the next $10 million; 0.35% of the next $50 million; and 0.25% over $70 million First Quadrant, L.P. ("FQ")(1) 90,438 -- 0.50% of the first $75 million under FQ's management; 0.35% of the next $75 million; 0.30% of the next $150 million; and 0.21% over $300 million WTIM-- Fundamental strategy 20,012 -- 0.40% on the first $10 million in assets allocated to the Fundamental strategy; 0.35% on the next $15 million; and 0.30% over $25 million WTIM-- Quantitative strategy 44,373 -- 0.15% on the first $1 billion in assets allocated to the Quantitative strategy; 0.10% on the next $1 billion; and 0.05% over $2 billion 149
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ GROSS FEES FEES WAIVED % OF AVERAGE DAILY NET ASSETS -------- --------- --------------------------------- INTERNATIONAL FUND - ------------------ RSMC $804,214 $ -- 0.35% of average daily net assets Goldman Sachs Asset Management, L.P.(1) 184,373 (8,793) 0.50% of average daily net assets Artio Global Management, LLC ("Artio") (Formerly Julius Baer Investment Management, Inc.)(2) 101,477 -- 0.50% of average daily net assets Acadian Asset Management LLC ("Acadian") 152,462 -- 0.75% of the first $25 million under Acadian's management; 0.65% of the next $25 million; 0.50% of the next $100 million; and 0.40% over $150 million Dimensional Fund Advisors LP ("DFA")(1) 145,364 (23,556) 0.45% of the first $50 million under DFA's management; and 0.30% over $50 million Parametric Portfolio Associates, Inc. ("PPA")-- Emerging Markets Strategy 373,604 -- 0.80% on first $100 million under PPA's management; 0.75% over $100 million Parametric Portfolio Associates, Inc. ("PPA")-- Developed Country Index Replication Strategy(1) 74,364 (10,132) 0.275% on first $50 million under PPA's management; 0.20% over $50 million Principal Global Investors, LLC ("Principal") 175,516 -- 0.75% of average daily net assets 150
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ GROSS FEES FEES WAIVED % OF AVERAGE DAILY NET ASSETS -------- --------- --------------------------------- REAL ASSET FUND - --------------- RSMC $738,201 $ -- 0.35% of average daily net assets RSMC--Enhanced Cash strategy 4,814 -- For assets allocated to the Enhanced Cash strategy, an additional fee as follows: 0.08% on the assets allocated to the Enhanced Cash strategy ING Clarion Real Estate Securities, LP ("ING")(1) 159,260 (9,131) 0.65% on the first $50 million under ING's management; 0.55% on the next $50 million; and 0.45% over $100 million EII Realty Securities, Inc. ("EII")(1) 103,839 -- 0.65% on the first $100 million under EII's management; and 0.60% over $100 million. Pacific Investment Management Company LLC ("PIMCO") 179,769 -- 0.2875% on the average daily net assets under PIMCO's management. Sinopia Asset Management ("Sinopia") 80,287 -- 0.20% on the first $100 million under Sinopia's management; 0.15% on the next $400 million; and 0.10% over $500 million. - ---------- (1) Pursuant to separate fee waiver agreements, the sub-advisor has agreed to waive its fee to the extent that the fee calculation determined by taking into account similarly managed assets in the accounts of clients of RSMC or its affiliates results in a fee that is less than the fee calculation under the sub-advisory agreement. (2) Effective December 3, 2009, Artio receives an annual fee paid monthly as follows: if the average daily net assets under Artio's management for the month is less than $125 million, the applicable annual fee is 0.50% on average daily net assets; if the average daily net assets under Artio's management for the month is $125 million or more, the applicable annual fee is 0.45% on the first $100 million of average daily net assets and 0.40% on average daily net assets in excess of $100 million. 151
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ RSMC has contractually agreed to waive a portion of its advisory fee or reimburse other operating expenses (excluding taxes, extraordinary expenses, brokerage commissions and interest) to the extent that total annual operating expenses, excluding class-specific expenses (such as Rule 12b-1 or shareholder service fees), exceed the following percentages of average daily net assets: EXPENSE LIMITATION* EXPIRATION DATE ------------------- ---------------- Small-Cap Strategy Fund(1) ..................................................... 0.25% October 31, 2010 Large-Cap Fund ................................................................. 1.00% October 31, 2014 * This expense limitation will remain in place until its expiration date unless the Trustees approve its earlier termination. (1) For the period July 1, 2008 to December 31, 2008, the expense limitation was 1.25%. The Funds' Chief Compliance Officer is employed and compensated by RSMC. RSMC provides compliance services to the Funds pursuant to a Compliance Services Agreement. For these services, the Trust pays RSMC an annual fee equal to three-fourths of the Chief Compliance Officer's total compensation. The fees for these services for the six-month period ended December 31, 2009 are shown separately on the statements of operations. RSMC provides administrative services to the Funds pursuant to an Administration Agreement. For these services, the Trust pays RSMC a fee at the annual rate of 0.0185% of the Trust's first $2 billion of total aggregate daily net assets; 0.0175% of the Trust's next $2 billion of total aggregate daily net assets; 0.0125% of the Trust's next $2 billion of total aggregate daily net assets; and 0.0080% of the Trust's total aggregate daily net assets in excess of $6 billion. The fees paid to RSMC for these services for the six-month period ended December 31, 2009 are shown separately on the statements of operations. PNC Global Investment Servicing (U.S.), Inc. provides sub-administration, accounting, and transfer agent services pursuant to an agreement with RSMC and the Trust for which it receives fees directly from the Funds. Fees for these services, for the six-month period ended December 31, 2009, are shown separately on the statement of operations. COMPENSATION OF TRUSTEES AND OFFICERS. Except for the Funds' Chief Compliance Officer, Trustees and Officers of the Funds who are employees or officers of RSMC or WTIM do not receive any compensation from the Funds. Trustees of the Funds, who are not employees or officers of RSMC or WTIM, receive compensation and reimbursement of expenses from the Funds. Under a Deferred Compensation Plan (the "Plan") adopted August 15, 2002, a disinterested Trustee may elect to defer receipt of all, or a portion, of their annual compensation. Deferred amounts are invested in shares of a series of the Trust and remain so until distributed in accordance with the Plan. Trustees' fees reflected in the accompanying financial statements include total compensation earned, whether elected to be paid in cash or deferred under the Plan. DISTRIBUTION FEES. The A Shares of each Fund have adopted a distribution plan under Rule 12b-1 under the 1940 Act that allows each Fund to pay a fee for the sale and distribution of A Shares, and for services provided to A Shares shareholders. The 12b-1 Plan provides for a maximum distribution fee at an annual rate of 0.25% of each Fund's average daily net assets of the A Shares. 152
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ Wilmington Trust Company ("WTC"), an affiliate of RSMC, serves as custodian to the Funds and PFPC Trust Company serves as sub-custodian to the Funds, except for the International Fund. PFPC Trust Company serves as custodian and Citibank, N.A. serves as the foreign custody manager for the International Fund and the Real Asset Fund. The Funds pay WTC for its services as custodian. The fees for these services for the six-month period ended December 31, 2009 are shown separately on the statements of operations. WTC pays PFPC Trust Company for its services as sub-custodian. Certain Funds effect trades for security purchase and sale transactions through brokers that are affiliates of the adviser or sub-advisers. Commissions paid on those trades for the six-month period ended December 31, 2009 were as follows: Small-Cap Strategy Fund ...................................................................................... $ 44,587 Large-Cap Fund ............................................................................................... 100,371 International Fund ........................................................................................... 44,688 Real Asset Fund .............................................................................................. 46,664 5. INVESTMENT SECURITIES TRANSACTIONS. During the six-month period ended December 31, 2009, purchases and sales of investment securities (excluding short-term investments) were as follows: SMALL-CAP STRATEGY FUND LARGE-CAP FUND ----------------------- -------------- Purchases .................................................................... $22,312,375 $76,131,296 Sales ........................................................................ 27,227,398 82,502,526 INTERNATIONAL FUND REAL ASSET FUND ------------------ --------------- Purchases .................................................................... $247,959,503 $264,406,009 Sales ........................................................................ 264,132,523 287,575,675 6. SECURITIES LENDING AGREEMENT. Small-Cap Strategy Fund and Large-Cap Fund may lend their securities pursuant to a securities lending agreement ("Lending Agreement") with PFPC Trust Company. Security loans made pursuant to the Lending Agreement are required at all times to be secured by cash collateral at least equal to 102% of the market value of the securities loaned. Cash collateral received, pursuant to investment guidelines established by the Fund and approved by the Board of Trustees, is invested in short-term fixed income securities rated in the highest rating category by nationally recognized statistical rating organizations (or of comparable quality if unrated) with a maturity date of 397 days or less, including corporate obligations and money market mutual funds. All such investments are made at the risk of the Fund and, as such, the Fund is liable for investment losses. PFPC Trust Company and the borrower retain a portion of the earnings from the collateral investments, with the remainder being retained by the Fund. The Fund records securities lending income net of such allocations. In the event the borrower fails to return loaned securities, and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, PFPC Trust Company has agreed to pay the amount of the shortfall to the Fund, or at its discretion, replace the loaned securities. In the event of default or bankruptcy by PFPC Trust Company, realization and/or retention of the collateral may be subject to legal proceedings. 153
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ 7. CAPITAL SHARE TRANSACTIONS. Transactions in shares of capital stock for the six-month period ended December 31, 2009 and the year ended June 30, 2009 for the Institutional Shares and A Shares were as follows: FOR THE SIX-MONTH PERIOD FOR THE YEAR ENDED ENDED DECEMBER 31, 2009 JUNE 30, 2009 ------------------------ -------------------------- INSTITUTIONAL INSTITUTIONAL SHARES A SHARES SHARES A SHARES ------------- -------- ------------- ---------- SMALL-CAP STRATEGY FUND Sold ............................................................ 1,507,764 -- 9,931,006 1,621 Issued in fund merger (Note 8) .................................. -- -- 484,061 914 Issued on reinvestment of distributions ................................................ 24,379 2 30,914 18 Redeemed ........................................................ (2,130,778) (2,010) (4,342,017) (1,628) ---------- -------- ----------- ---------- Net Increase (Decrease) ......................................... (598,635) (2,008) 6,103,964 925 ========== ======== =========== ========== LARGE-CAP FUND Sold ............................................................ 2,714,668 -- 5,908,058 -- Issued in fund merger (Note 8) .................................. -- -- 1,006,489 935 Issued on reinvestment of distributions ................................................ 54,514 8 122,950 42 Redeemed ........................................................ (3,445,091) (3,311) (11,471,690) (769) ---------- -------- ----------- ---------- Net Increase (Decrease) ......................................... (675,909) (3,303) (4,434,193) 208 ========== ======== =========== ========== INTERNATIONAL FUND Sold ............................................................ 6,719,067 2,112 30,827,808 2,051 Issued on reinvestment of distributions ................................................ 156,267 48 3,401,933 801 Redeemed ........................................................ (9,654,151) (5,543) (82,288,071) (1,856) ---------- -------- ----------- ---------- Net Increase (Decrease) ......................................... (2,778,817) (3,383) (48,058,330) 996 ========== ======== =========== ========== REAL ASSET FUND Sold ............................................................ 5,873,765 605,421 12,113,316 3,245,994 Issued on reinvestment of distributions ................................................ 114,677 16,091 2,272,993 277,060 Redeemed ........................................................ (5,150,932) (793,301) (26,743,669) (3,631,596) ---------- -------- ----------- ---------- Net Increase (Decrease) ......................................... 837,510 (171,789) (12,357,360) (108,542) ========== ======== =========== ========== 8. MERGERS. On October 17, 2008, the Small-Cap Strategy Fund acquired all of the assets and liabilities of the Wilmington Fundamentally Weighted Small Company Fund ("Small Company Fund") in exchange for shares of the Small-Cap Strategy Fund, pursuant to an agreement and plan of reorganization approved by the Board of Trustees and approved by the shareholders of the Small Company Fund. The Small-Cap Strategy Fund's acquisition of the Small Company Fund was accomplished through the tax free exchange of the outstanding shares of the Small Company Fund, 554,961 Institutional Shares and 1,040 A Shares, on October 17, 2008 (valued at $3,350,514 and $6,272, respectively) for 484,061 Institutional Shares and 914 A Shares of the Small-Cap Strategy Fund. The net assets and net unrealized depreciation of the Small Company Fund as of the close of business on October 17, 2008 were $3,356,786 and $1,834,974, 154
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ respectively. Prior to the acquisition on October 17, 2008, the Small-Cap Strategy Fund had net assets of $61,542,816. After the acquisition the Small-Cap Strategy Fund had net assets of $64,899,602. The Small Company Fund had a capital loss of $462,139 as of the merger date which is available to offset future gains of the Small-Cap Strategy Fund (subject to limitations imposed by the Internal Revenue Code and the regulations thereunder). If not utilized against future gains, $138,079 of the capital loss carryforward will expire on June 30, 2015 and $324,060 will expire on June 30, 2016. On October 17, 2008, the Large-Cap Fund acquired all of the assets and liabilities of the Wilmington Fundamentally Weighted Large Company Fund ("Large Company Fund") in exchange for shares of the Large-Cap Fund, pursuant to an agreement and plan of reorganization approved by the Board of Trustees and approved by the shareholders of the Large Company Fund. The Large-Cap Fund's acquisition of the Large Company Fund was accomplished through the tax free exchange of the outstanding shares of the Large Company Fund, 1,459,715 Institutional Shares and 1,356 A Shares, on October 17, 2008 (valued at $8,882,355 and $8,250, respectively) for 1,006,489 Institutional Shares and 935 A Shares of the Large-Cap Fund. The net assets and net unrealized depreciation of the Large Company Fund as of the close of business on October 17, 2008 were $8,890,605 and $4,505,674, respectively. Prior to the acquisition on October 17, 2008, the Large-Cap Fund had net assets of $174,760,441. After the acquisition the Large-Cap Fund had net assets of $183,651,046. The Large Company Fund had a capital loss of $2,043,157 as of the merger date which is available to offset future gains of the Large-Cap Fund (subject to limitations imposed by the Internal Revenue Code and the regulations thereunder). If not utilized against future gains, this capital loss carryforward will expire on June 30, 2016. 9. FEDERAL TAX INFORMATION. Distributions to shareholders from net investment income and realized gains are determined in accordance with Federal income tax regulations, which may differ from net investment income and realized gains recognized for financial reporting purposes. Additionally, gains (losses) on foreign currency transactions and net short-term realized gains are treated as "ordinary income" for tax purposes. Accordingly, the character of distributions and composition of net assets for tax purposes may differ from those reflected in the accompanying financial statements. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on the tax treatment; temporary differences do not require such reclassification. The tax character of distributions paid during the six-month period ended December 31, 2009 and the year ended June 30, 2009, respectively, were as follows: SMALL-CAP LARGE-CAP INTERNATIONAL REAL ASSET STRATEGY FUND FUND FUND FUND ------------- ---------- ------------- ----------- SIX-MONTH PERIOD ENDED DECEMBER 31, 2009 Ordinary income .............................................. $492,924 $ 897,607 $ 2,304,620 $ 5,162,479 Long-term capital gains ...................................... -- -- -- -- -------- ---------- ----------- ----------- Total distributions ....................................... $492,924 $ 897,607 $ 2,304,620 $ 5,162,479 ======== ========== =========== =========== YEAR ENDED JUNE 30, 2009 Ordinary income .............................................. $382,325 $2,041,688 $ 8,908,391 $26,830,976 Long-term capital gains ...................................... -- -- 15,213,506 30,435,357 -------- ---------- ----------- ----------- Total distributions ....................................... $382,325 $2,041,688 $24,121,897 $57,266,333 ======== ========== =========== =========== 155
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED ============================================================================================================================ For Federal income tax purposes, capital loss carryforwards are available to offset future capital gains. As of December 31, 2009, the capital loss carryforwards that expire as follows: SMALL-CAP LARGE-CAP INTERNATIONAL STRATEGY FUND FUND FUND ------------- ----------- ------------- 06/30/2017 ......................................................... $2,922,479 $16,951,239 $109,475,284 During the fiscal year ended June 30, 2009, the preceeding funds did not utilize any of their capital loss carryforwards. 10. CONTRACTUAL OBLIGATIONS. The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds' existing contracts and expects the risk of loss to be remote. 11. RECENT ACCOUNTING PRONOUNCEMENTS. In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06 "Improving Disclosures about Fair Value Measurements." ASU 2010-06 amends FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, to require additional disclosures regarding fair value measurements. Certain disclosures required by ASU No. 2010-06 are effective for interim and annual reporting periods beginning after December 15, 2009, and other required disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact ASU No. 2010-06 will have on its financial statement disclosures. 12. SUBSEQUENT EVENTS. Management has evaluated the impact of all subsequent events on the Funds through February 26, 2010, the date the financial statements were available for issuance, and has determined that the following subsequent events require disclosure in the financial statements. At the next scheduled meeting of the Board of Trustees, the Board of Trustees will make a determination as to the termination of Armstrong Shaw Inc. as a sub-adviser to the Large-Cap Fund. On February 2, 2010, The PNC Financial Services Group, Inc. ("PNC") entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") with The Bank of New York Mellon Corporation ("BNY Mellon"). Upon the terms and subject to the conditions set forth in the Stock Purchase Agreement, which has been approved by the board of directors of each company, PNC will sell to BNY Mellon (the "Stock Sale") 100% of the issued and outstanding shares of PNC Global Investment Servicing, Inc., an indirect, wholly-owned subsidiary of PNC. The Stock Sale includes PNC Global Investment Servicing (U.S.) Inc., and PFPC Trust Company and is expected to close in the third quarter of 2010. 156
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- EVALUATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS ============================================================================================================================ At a meeting held on August 20, 2009, the Board of Trustees of WT Mutual Fund (the "Trust"), including a majority of those trustees who are not "interested persons" as such term is defined in the 1940 Act ("Independent Trustees"), unanimously approved the continuation for an additional one-year period of the investment advisory agreement between the Trust, on behalf of the Wilmington Small-Cap Strategy Fund ("Small-Cap Fund"), Wilmington Multi-Manager Large-Cap Fund ("Large-Cap Fund"), Wilmington Multi-Manager International Fund, and Wilmington Multi-Manager Real Asset Fund (each a "series"), and RSMC (the "Advisory Agreement"). The Trustees also unanimously approved the continuation of the sub-advisory agreement among the Trust on behalf of each of the series, RSMC and Wilmington Trust Investment Management, LLC ("WTIM"), pursuant to which WTIM provides certain investment services, information, advice, assistance and facilities, research and statistical investment services, as well as continuation of the sub-advisory agreement among the Trust, on behalf of Large-Cap Fund and Small-Cap Fund, RSMC and WTIM (the "WTIM Agreements"). WTIM is a wholly owned subsidiary of Wilmington Trust Corporation and is under common control with RSMC. Employees of WTIM are also employees of RSMC. Prior to voting, the Independent Trustees reviewed the Agreements with RSMC, WTIM and legal counsel and received advice from such counsel regarding the legal standards to be followed in their consideration of the Agreements. The Independent Trustees also reviewed the Agreements in executive session with counsel at which time no representatives of RSMC or WTIM were present. At the same meeting the Board also approved the continuation of the sub-advisory agreements among the Trust, RSMC and each of the following sub-advisers: Acadian Asset Management, LLC, Armstrong Shaw Associates, Inc., Artio Global Management LLC, Dimensional Fund Advisors LP, EII Realty Securities, Inc., First Quadrant, L.P., Goldman Sachs Asset Management, L.P., ING Clarion Real Estate Securities, LLC, Parametric Portfolio Associates LLC, and Principal Global Investors LLC (the "Sub-Advisory Agreements" together with the WTIM Agreements and the Advisory Agreement, the "Agreements"). Prior to voting the Independent Trustees reviewed the Sub-Advisory Agreements with legal counsel and received advice from such counsel regarding the legal standards to be followed in their consideration of the Sub-Advisory Agreements. The Independent Trustees also reviewed the Sub-Advisory Agreements in executive session with counsel at which time no representatives of the Sub-Advisers were present. Before meeting to determine whether to approve the continuation of the Agreements, the Board had the opportunity to review written materials provided by RSMC and each of the sub-advisers. The materials generally included information regarding (i) services performed for the Trust and one or more of its series, (ii) the size and qualifications of RSMC's and each Sub-adviser's portfolio management staff, (iii) any potential or actual material conflicts of interest which may arise in connection with a portfolio manager's management of a series of the Trust, (iv) investment performance, (v) brokerage selection procedures (including soft dollar arrangements), (vi) the procedures for allocating investment opportunities between a series and other clients, (vii) results of any independent audit or regulatory examination, including any recommendations or deficiencies noted, (viii) any litigation, investigation or administrative proceeding which may have a material impact on RSMC's or any Sub-adviser's ability to service the series, (ix) the compliance with a series' investment objective, policies and practices (including its code of ethics), federal securities laws and other regulatory requirements, and (x) proxy voting policies. RSMC and the Sub-advisers provided information regarding the advisory fees received and an analysis of these fees in relation to the delivery of services for each of the series, the costs of providing such services, the profitability of the firm in general and as a result of the fees received from the series and any other ancillary benefit resulting from RSMC's or the Sub-adviser's relationship with the Trust. 157
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- EVALUATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS -- CONTINUED ============================================================================================================================ The Board also received a memorandum from counsel to the Trust which outlined the duties of trustees when considering approval of an investment advisory agreement and related legal standards. In addition, the Board received a report prepared by two of the Trustees which considered, among other items,: (i) investment performance (ii) compliance and regulatory issues; (iii) operations; (iv) asset growth; (v) profitability; and (vi) expense control. The Board considered and weighed the above information based upon its accumulated experience in governing the Trust and working with RSMC on matters relating to the Trust. During its deliberations on whether to approve the continuation of the Agreements, the Board considered many factors. The Board considered the nature, extent and quality of the services provided by RSMC and each Sub-adviser. The Trustees considered the services provided to each series by each Sub-adviser, as compared to services provided by other advisers which manage mutual funds with investment objectives, strategies and policies similar to those of the series. The Trustees believe that changes in management have generally been favorable. The Trustees concluded that the nature, extent and quality of the services provided by the Adviser and Sub-adviser(s) to each series are appropriate and consistent with the terms of the Agreements, that the quality of those services has been consistent with industry norms and that the series are likely to benefit from the continued provision of those services. They also concluded that the Adviser and each Sub-adviser have sufficient personnel, with the appropriate education and experience, to serve each series effectively and have demonstrated their continuing ability to attract and retain qualified personnel. The Board considered the investment performance of each series, RSMC and each of the Sub-advisers. The Board reviewed and considered comparative performance data and each series' performance relative to other mutual funds with similar investment objectives, strategies and policies, its respective benchmark index, and its Lipper peer group rankings. The Board also noted that it reviews and evaluates the investment performance of each series and Sub-adviser on an on-going basis throughout the year. The Trustees considered the short-term and long-term performance of each series. They concluded that the performance of each series and RSMC and each Sub-adviser is within an acceptable range of performance relative to other mutual funds with similar investment objectives, strategies and policies. The Trustees noted that although the performance of some series and Sub-advisers has lagged for certain periods, RSMC has taken appropriate steps to address the underperformance. The Board considered the costs of the services provided by RSMC and each Sub-adviser, the compensation and benefits received by RSMC and each Sub-adviser in providing services to the series, as well as RSMC's and each Sub-adviser's profitability. In addition, the Board considered any direct or indirect revenues received by affiliates of RSMC and the Sub-advisers. The Board was satisfied that the RSMC's and each Sub-adviser's profits are sufficient to continue as viable concerns generally and as investment adviser or sub-adviser of each series specifically. The Board concluded that RSMC's and each Sub-adviser's fees and profits derived from its relationship with the Trust in light of each series' expenses, are reasonable in relation to the nature and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies. The Trustees also concluded that the overall expense ratio of each series is reasonable, taking into account the size of the series, the quality of services provided by RSMC and the Sub-advisers, the investment performance of the series and the expense limitations agreed to by RSMC. 158
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- EVALUATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS -- CONTINUED ============================================================================================================================ The Trustees also considered the extent to which economies of scale would be realized relative to fee levels as each series grows, and whether the advisory fee levels reflect these economies of scale for the benefit of shareholders. The Board determined that economies of scale should be achieved at higher asset levels for each of the series for the benefit of shareholders due to certain break-points in the advisory or sub-advisory fees. The Board recognized that the economies of scale achieved will be primarily the result of the ability of the Trust and each series to spread its fixed costs across a larger asset base and not through negotiated breakpoints in the advisory fees. The Trustees considered whether any events have occurred that would constitute a reason for the Board not to approve continuation of the Agreement and concluded there were not. After consideration of all the factors, and taking into consideration the information presented during previous meetings of the Board, the Board determined that it would be in the best interests of each series and its shareholders to approve the continuation of each of the Agreements for an additional one-year period. In arriving at its decision, the Board did not identify any single matter as controlling, but made its determination in light of all the facts and circumstances. 159
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- EVALUATION AND APPROVAL OF NEW SUB-ADVISORY AGREEMENT FOR THE WILMINGTON MULTI-MANAGER INTERNATIONAL FUND ============================================================================================================================ As noted above, on August 20, 2009, the Board of Trustees of the Trust approved the continuation for an additional one-year period of the sub-advisory agreement among the Trust, on behalf of the Wilmington Multi-Manager International Fund, (the "Fund"), RSMC and Artio Global Management LLC ("Artio Global") (the "Sub-advisory Agreement"). A change of control of Artio Global occurred on September 24, 2009 and, accordingly, the Sub-advisory Agreement terminated. On that date, an Interim Sub-advisory Agreement, which was previously approved by the Board and had a maximum term of 150 days was executed. At the Board of Trustees meeting held on November 18, 2009, the Board of Trustees approved a new sub-advisory agreement among the Trust, RSMC and Artio Global (the "New Agreement") which replaced the Interim Agreement. Prior to voting on this matter, Independent Trustees reviewed the New Agreement with RSMC and with legal counsel and received advice from such counsel regarding the legal standards to be followed in their consideration of the New Agreement. The Independent Trustees also reviewed the New Agreement in executive session with counsel at which time no representatives of RSMC or Artio Global were present. The Board of Trustees, including the Independent Trustees voting separately, determined that the proposal to approve the New Agreement would be in the best interests of shareholders and the Fund. In determining whether to approve the New Agreement, the Trustees considered information provided by Artio Global. The Trustees considered information that Artio Global provided regarding (i) the services performed for the Fund, (ii) the size and qualifications of Artio Global's portfolio management staff, (iii) any potential or actual material conflicts of interest which may arise in connection with Artio Global's management of a portion of the Fund, (iv) how the portion of the Fund is managed by Artio Global, including a general description of the investment decision-making process, sources of information and investment strategies, (v) investment performance information, (vi) brokerage selection procedures (including soft dollar arrangements), (vii) the procedures for allocating investment opportunities between the Fund and other clients, (viii) results of any independent audit or regulatory examination, including any recommendations or deficiencies noted, (ix) any litigation, investigation or administrative proceeding which may have a material impact on Artio Global's ability to service the Fund, (x) Artio Global's internal program for ensuring compliance with the Fund's investment objective, policies and practices (including code of ethics), federal securities laws and other regulatory requirements, (xi) Artio Global's proxy voting policies and (xii) detail and quantification of any fee sharing arrangements with respect to the distribution of shares of the Fund. The Trustees reviewed the services provided to the Fund by Artio Global as compared to services provided by other advisers which manage mutual funds with investment objectives, strategies and policies similar to those of the Fund. The Trustees concluded that the services provided by Artio Global are consistent with those of other advisers which manage mutual funds with investment objectives, strategies and policies similar to those of the Fund. They also concluded that Artio Global has sufficient personnel, with the appropriate education and experience, to serve the Fund effectively and has demonstrated its ability to attract and retain qualified personnel. The Trustees considered whether the change of control of Artio Global would impact the services currently being provided to the Fund. Based on the information provided at the meeting, the Trustees concluded that there would be no material impact on the services provided to the Fund. The Trustees concluded that the nature, extent and quality of the services provided by Artio Global to the Fund are appropriate and consistent with the terms of the New Agreement and that the Fund is likely to benefit from the continued service. 160
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- EVALUATION AND APPROVAL OF NEW SUB-ADVISORY AGREEMENT FOR THE WILMINGTON MULTI-MANAGER INTERNATIONAL FUND -- CONTINUED ============================================================================================================================ The Trustees reviewed the performance information for the Fund including the portion of the Fund managed by Artio Global and compared such data against comparable investment companies. The Trustees also reviewed the performance information for three mutual funds that are sub-advised by Artio Global (the "Artio Funds"). Based on the information provided at the meeting, the Trustees concluded that Artio Global's performance was reasonable for this type of fund. The Trustees observed that they review and evaluate the investment performance of the Fund and each of its sub-advisers throughout the year. Artio Global also provided information regarding its sub-advisory fee and an analysis of this fee in relation to the delivery of services to the Fund; any other ancillary benefit resulting from Artio Global's relationship with the Fund; and Artio Global's financial statements. The Trustees noted that the Artio Funds have a lower advisory fee as well as break-point reductions for assets exceeding certain levels. The Trustees authorized the representatives of RSMC to propose to Artio Global break-point fee reductions in the event assets allocated to Artio Global exceed certain levels, but concluded that the current fee proposal was reasonable for the current level of assets allocated to Artio Global in relation to the services it provides to the Fund. The Trustees considered the costs of the services provided by Artio Global, the compensation and the benefits received by Artio Global in providing services to the Fund. The Trustees reviewed Artio Global's financial statements. In addition, the Trustees considered any direct or indirect revenues which would be received by affiliates of Artio Global. The Trustees concluded that Artio Global's fees and profits derived from its relationship with the Fund in light of the Fund's expenses, are reasonable in relation to the nature and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies. The Trustees also concluded that the overall expense ratio of the Fund is reasonable, taking into account the size of the Fund, the quality of services provided by Artio Global and the investment performance. After consideration of all the factors and taking into consideration the information presented at the meeting, the Trustees determined that approval of the New Agreement is in the best interests of the Fund shareholders. The Trustees noted that the current fee proposal as presented at the meeting did not include break-point reductions in the advisory fee at higher asset levels. In approving the fee, the Trustees concluded that the current fee proposal was reasonable. In addition the Trustees instructed RSMC to continue negotiating with Artio Global with respect to the implementation of break-point reductions in the advisory fee as certain asset levels were achieved. In arriving at their decision, the Trustees did not identify any single matter as controlling, but made their determination in light of all the circumstances. Subsequent to the meeting, RSMC and Artio Global agreed upon certain break-point reductions in the advisory fee as certain asset levels were achieved which are reflected in the New Agreement. 161
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- TRUSTEES AND OFFICERS ============================================================================================================================ WT Mutual Fund (the "Trust") is governed by a Board of Trustees (the "Trustees"). The primary responsibility of the Trustees is to represent the interest of the Trust's shareholders and to provide oversight management of the Trust. The following table presents certain information regarding the Trustees and Officers of the Trust. Each person listed under "Interested Trustee" below is an "interested person" of the Trust's investment advisers, within the meaning of the Investment Company Act of 1940, as amended (the "1940 Act"). Each person who is not an "interested person" of the Trust's investment advisers or the Trust within the meaning of the 1940 Act is referred to as an "Independent Trustee" and is listed under such heading below. Unless specified otherwise, the address of each Trustee and Officer as it relates to the Trust is 1100 N. Market Street, Wilmington, DE 19890. The Statement of Additional Information for the Funds contains additional information about the Trustees and is available, without charge, upon request, by calling (800) 336-9970 or by visiting the Funds' website at www.wilmingtonfunds.com. INTERESTED TRUSTEES NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ---------------------------------- ------------------------------ ------------------------------------------------------ TED T. CECALA(2) Trustee Director, Chairman of the Board, and Chief Executive Date of Birth: 1/49 Officer of Wilmington Trust Corporation and Wilmington Shall serve at the pleasure of Trust Company since 1996; Member of the Board of 12 Funds the Board and until successor Managers of Cramer Rosenthal McGlynn, LLC and Roxbury is elected and qualified. Capital Management, LLC (registered investment Trustee since August 2007. advisers). Wilmington Trust Corporation; Wilmington Trust Company. - ---------------------------------------------------------------------------------------------------------------------------- ROBERT J. CHRISTIAN(3) Trustee Retired since February 2006; Executive Vice President Date of Birth: 2/49 of Wilmington Trust Company from February 1996 to Shall serve until death, February 2006; President of Rodney Square Management 12 Funds resignation or removal. Corporation ("RSMC") from 1996 to 2005; Vice President Trustee since October 1998, of RSMC 2005 to 2006. President and Chairman of the Board from October 1998 FundVantage Trust (13 portfolios); Optimum Fund Trust to January 2006. (6 portfolios) (registered investment companies). (1) The "Fund Complex" currently consists of the Trust (12 funds) and CRM Mutual Fund Trust (8 funds). (2) Mr. Cecala is an "Interested Trustee" by reason of his position with Wilmington Trust Corporation and Wilmington Trust Company, each an affiliate of RSMC, an investment adviser to the Trust. (3) Mr. Christian is an "Interested Trustee" by reason of his previous employment with RSMC, the investment adviser to the Trust. 162
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- TRUSTEES AND OFFICERS -- CONTINUED ============================================================================================================================ INDEPENDENT TRUSTEES NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ---------------------------------- ------------------------------ ------------------------------------------------------ ROBERT ARNOLD Trustee Founder and co-manager, R.H. Arnold & Co., Inc. Date of Birth: 3/44 (financial consulting) since 1989. Shall serve until death, 12 Funds resignation or removal. First Potomac Realty Trust (real estate investment Trustee since May 1997. trust). - ---------------------------------------------------------------------------------------------------------------------------- DR. ERIC BRUCKER Trustee Professor of Economics, Widener University since July Date of Birth: 12/41 2004; formerly Dean, School of Business Administration Shall serve until death, of Widener University from 2001 to 2004; Dean, College 12 Funds resignation or removal. of Business, Public Policy and Health at the Trustee since October 1999. University of Maine from September 1998 to June 2001. None - ---------------------------------------------------------------------------------------------------------------------------- NICHOLAS GIORDANO Trustee and Chairman of Consultant, financial services organizations from 1997 Date of Birth: 3/43 the Board to present; Interim President, LaSalle University from 1998 to 1999; President and Chief Executive Officer, 12 Funds Shall serve until death, Philadelphia Stock Exchange from 1981 to 1997. resignation or removal. Trustee since October 1998. Kalmar Pooled Investment Trust; The RBB Fund, Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (industrial furnaces and ovens). - ---------------------------------------------------------------------------------------------------------------------------- LOUIS KLEIN, JR. Trustee Self-employed financial consultant since 1991. Date of Birth: 5/35 Shall serve until death, CRM Mutual Fund Trust (8 portfolios) (registered 20 Funds resignation or removal. investment companies); WHX Corporation (industrial Trustee since October 1999. manufacturer). 163
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- TRUSTEES AND OFFICERS -- CONTINUED ============================================================================================================================ INDEPENDENT TRUSTEES (CONTINUED) NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ---------------------------------- ------------------------------ ------------------------------------------------------ THOMAS LEONARD Trustee Retired since 2008; former Partner with Date of Birth: 2/49 PricewaterhouseCoopers (public accounting) from May Shall serve until death, 1970 to June 2008. 12 Funds resignation or removal. Trustee since July 2008. Alpha One Capital Partner, LLC (2 portfolios) (unregistered investment companies) EXECUTIVE OFFICERS POSITION(S) HELD WITH TRUST, PRINCIPAL OCCUPATION(S) TERM OF OFFICE AND DURING PAST FIVE YEARS, NAME, ADDRESS AND LENGTH OF TIME OTHER DIRECTORSHIPS DATE OF BIRTH SERVED HELD - ---------------------------------- ------------------------------ ------------------------------------------------------ JOHN J. KELLEY President & Chief Executive President of Rodney Square Management Corporation 1100 North Market Street Officer ("RSMC") since 2008; Vice President of Wilmington Wilmington, DE 19890 Trust Investment Management, LLC ("WTIM") since 2005; Date of Birth: 9/59 Shall serve at the pleasure of Vice President of PNC Global Investment Servicing the Board and until successor (U.S.), Inc. (formerly PFPC Inc.) from January 2005 to is elected and qualified. July 2005; Vice President of Administration, 1838 Officer since September 2005. Investment Advisors, LP from 1999 to 2005; Chief Compliance Officer, 1838 Investment Advisors, LP from 2004 to 2005. N/A - ---------------------------------------------------------------------------------------------------------------------------- CLAYTON M. ALBRIGHT Vice President Managing Director, Fixed Income Management, Wilmington 1100 North Market Street Trust since 2007; Director, Fixed Income Research and Wilmington, DE 19890 Shall serve at the pleasure of Portfolio Manager, Wilmington Trust from 1996 to 2007; Date of Birth: 9/53 the Board and until successor Vice President, RSMC since 2001; Vice President of is elected and qualified. WTIM since 2006; Vice President, Wilmington Trust Officer since October 1998. Company since 1997. N/A 164
WILMINGTON FUNDS -- SMALL-CAP STRATEGY AND MULTI-MANAGER FUNDS - -------------------------------------------------------------- TRUSTEES AND OFFICERS -- CONTINUED ============================================================================================================================ EXECUTIVE OFFICERS (CONTINUED) POSITION(S) HELD WITH TRUST, PRINCIPAL OCCUPATION(S) TERM OF OFFICE AND DURING PAST FIVE YEARS, NAME, ADDRESS AND LENGTH OF TIME OTHER DIRECTORSHIPS DATE OF BIRTH SERVED HELD - ---------------------------------- ------------------------------ ------------------------------------------------------ JOSEPH M. FAHEY, JR. Vice President Investment Adviser, WTIM since 2003; Vice President, 1100 North Market Street RSMC since 1992. Wilmington, DE 19890 Shall serve at the pleasure of Date of Birth: 1/57 the Board and until successor N/A is elected and qualified. Officer since November 1999. - ---------------------------------------------------------------------------------------------------------------------------- JOHN C. MCDONNELL Vice President, Chief Director of Mutual Fund Administration, WTIM, since 1100 North Market Street Financial Officer & Treasurer October 2005; Audit and Assurance-Senior, Deloitte Wilmington, DE 19890 (public accounting) from September 2004 to October Date of Birth: 4/66 Shall serve at the pleasure of 2005; Mutual Fund Administration, 1838 Investment the Board and until successor Advisors, LP from March 1999 to September 2004. is elected and qualified. Officer since November 2005. - ---------------------------------------------------------------------------------------------------------------------------- ANNA M. BENCROWSKY Vice President, Chief Chief Compliance Officer, WTIM since 2007; Vice 1100 North Market Street Compliance Officer & Anti- President, WTIM since 2004; Vice President and Chief Wilmington, DE 19890 Money Laundering Officer Compliance Officer, RSMC since 2004; Vice President Date of Birth: 5/51 and Chief Compliance Officer, 1838 Investment Shall serve at the pleasure of Advisors, LP from 1999 to 2004. the Board and until successor is elected and qualified; N/A Officer since September 2004. - ---------------------------------------------------------------------------------------------------------------------------- EDWARD W. DIFFIN, JR. Vice President & Secretary Director of Mutual Fund Regulatory Administration of 1100 North Market Street WTIM since November 2006; Coleman Counsel Per Diem Wilmington, DE 19890 Shall serve at the pleasure of from November 2005 to November 2006; Vice President Date of Birth: 1/52 the Board and until successor and Senior Counsel of Merrill Lynch & Co., Inc. from is elected and qualified; 1994 to 2005. Officer since February 2007. N/A - ---------------------------------------------------------------------------------------------------------------------------- VOTING PROXIES ON FUND PORTFOLIO SECURITIES A description of the policies and procedures that the Trust used to determine how to vote proxies relating to securities held in the Trust's portfolios is available without charge by calling the Fund at (800) 336-9970 or on the SEC's website at http://www.sec.gov. Information regarding how the investment adviser voted proxies for the most recent twelve-month period ended June 30, 2009 is available, without charge, by calling the Fund at (800) 336-9970 or on the SEC's website listed above. 165
TRUSTEES OFFICERS Nicholas A. Giordano John J. Kelley Chairman of the Board President & Chief Executive Officer John C. McDonnell Robert H. Arnold Vice President, Chief Financial Officer & Treasurer Dr. Eric Brucker Edward W. Diffin Jr. Vice President & Secretary Ted T. Cecala Clayton M. Albright Robert J. Christian Vice President Joseph M. Fahey Jr. Louis Klein Jr. Vice President Thomas Leonard Anna M. Bencrowsky Vice President, Chief Compliance Officer & Anti-Money Laundering Officer CUSTODIAN Wilmington Trust Company 1100 North Market Street, Wilmington, DE 19890 INVESTMENT ADVISER AND ADMINISTRATOR Rodney Square Management Corporation 1100 North Market Street, Wilmington, DE 19890 SUB-ADMINISTRATOR, TRANSFER AGENT, AND ACCOUNTING AGENT PNC Global Investment Servicing (U.S.), Inc. 301 Bellevue Parkway, Wilmington, DE 19809 THIS SEMI-ANNUAL REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO SHAREHOLDERS AND TO OTHERS WHO HAVE RECEIVED A CURRENT PROSPECTUS OF THE SMALL-CAP STRATEGY FUND AND THE WILMINGTON MULTI-MANAGER FUNDS - INSTITUTIONAL AND A SHARES. | WILMINGTON | FUNDS | S-C&MULTI_Semi_12/09 |
ASSET ALLOCATION FUNDS SEMI-ANNUAL REPORT | DECEMBER 31, 2009 AGGRESSIVE ASSET ALLOCATION CONSERVATIVE ASSET ALLOCATION WILMINGTON | (GRAPHIC) FUNDS | WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS
CONTENTS page - -------- ---- President's Message ..................................................... 3 Expense Disclosure ...................................................... 10 Disclosure of Portfolio Holdings ........................................ 12 Investments ............................................................. 13 Financial Statements .................................................... 15 Financial Highlights .................................................... 19 Notes to Financial Statements ........................................... 23 Evaluation and Approval of Investment Advisory and Sub-Advisory Agreements ........................................................... 29 Trustees and Officers ................................................... 31
DEFINITION OF INDICES It is not possible to invest directly in an index. All indices represented are unmanaged. All indices assume the reinvestment of dividends and interest income unless otherwise noted. BARCLAYS CAPITAL U.S. CORPORATE HIGH-YIELD INDEX is an unmanaged index of the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody's, Fitch and S&P is Ba1/BB+/BB+ or below. BARCLAYS CAPITAL U.S. GOVERNMENT 1-3 YEAR INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes Treasuries and U.S. agency debentures (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government) with a maturity range between 1 and 3 years. BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT/CREDIT INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes bonds from the Treasury, Government-related and Corporate sectors with a maturity range between 1 and 10 years. BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes Treasuries and U.S. agency debentures (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government) with a maturity range between 1 and 10 years. BARCLAYS CAPITAL U.S. LONG GOVERNMENT INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index includes Treasuries and U.S. agency debentures (publicly issued debt of U.S. Government agencies, quasi-federal corporations, and corporate or foreign debt guaranteed by the U.S. Government) with a maturity range 10 years or greater. DOW JONES GLOBAL AGGRESSIVE PORTFOLIO INDEX(SM) AND DOW JONES GLOBAL MODERATELY CONSERVATIVE PORTFOLIO INDEXSM measure the performance of aggressive and conservative portfolios based on incremental levels of potential risk. The indexes are designed to systematically measure various levels of risk relative to the risk of a global all-stock index. The Dow Jones ("DJ") Global Aggressive Portfolio Index measures the risk of a portfolio with 100% exposure to equity securities and the DJ Global Moderately Conservative Portfolio Index measures the risk of a portfolio with 40% exposure to equity securities. 1 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS DEFINITION OF INDICES -- CONTINUED BOFA MERRILL LYNCH U.S. INFLATION-LINKED TREASURY INDEX is an unmanaged index of USD-denominated, investment-grade, fixed-rate, publicly issued, U.S. Treasury inflation-protected securities that have at least 1 year remaining to maturity and have $250 million or more of outstanding face value. BOFA MERRILL LYNCH U.S. 3-MONTH TREASURY BILL INDEX is comprised of a single outstanding U.S. Treasury 3-Month Bill purchased at the beginning of the month and held for a full month and at the end of the month (the rebalance date) the issue is sold and rolled into a newly selected issue that matures closest to, but not beyond, three months from the rebalance date. RUSSELL 3000(R) INDEX measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. RUSSELL 3000(R) GROWTH INDEX measures the performance of those Russell 3000 companies with higher price-to-book ratios and higher forecasted growth values. RUSSELL 3000(R) VALUE INDEX measures the performance of those Russell 3000 companies with lower price-to-book ratios and lower forecasted growth values. RUSSELL 2000(R) INDEX measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index. RUSSELL 1000(R) INDEX measures the performance of the 1,000 largest companies in the Russell 3000 Index, which represents approximately 92% of the total market capitalization of the Russell 3000 Index. STANDARD & POOR'S 500 INDEX (S&P 500(R)) is a market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance. THE DOW JONES INDICES ARE A SERVICE MARK OF DOW JONES & COMPANY, INC. BARCLAYS CAPITAL U.S. CORPORATE HIGH-YIELD INDEX, BARCLAYS CAPITAL U.S. GOVERNMENT 1-3 YEAR INDEX, BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT/CREDIT INDEX, BARCLAYS CAPITAL U.S. INTERMEDIATE GOVERNMENT INDEX, AND BARCLAYS CAPITAL U.S. LONG GOVERNMENT INDEX (C) BARCLAYS CAPITAL. THE RUSSELL INDICES ARE TRADEMARKS OF FRANK RUSSELL COMPANY. S&P INDICES ARE A REGISTERED TRADEMARK OF STANDARD & POOR'S CORPORATION, INC., A DIVISION OF THE MCGRAW-HILL COMPANIES. 2 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS PRESIDENT'S MESSAGE DEAR SHAREHOLDER: For the Funds' semi-annual period, July 1, 2009 through December 31, 2009, virtually all major equity indices posted sizeable gains. For this period, the Russell 3000, Russell 2000, and Russell 1000 Indices returned 23.2%, 23.9%, and 23.1%, respectively. For the twelve months ended December 31, 2009, these same indices garnered returns of 28.3%, 27.2%, and 28.4%, respectively. High-yield corporate, intermediate-term government, and short-term government bonds had results commensurate with their risk/return parameters, with Barclays Capital U.S. Corporate High-Yield Index, Barclays Capital U.S. Intermediate Government Index, and Barclays Capital U.S. Government 1-3 Year Index garnering returns of 21.3%, 1.2%, and 0.9%, respectively. (Long-term government bonds are reviewed below.) In other parts of the fixed income space, the Bank of America (BofA) Merrill Lynch U.S. 3-Month Treasury Bill Index and BofA Merrill Lynch U.S. Inflation-Linked Treasury Index, returned 0.1% and 5.0%, respectively, for the same period. ENCOURAGEMENT CAME FROM STOCK PERFORMANCE AND ECONOMIC SIGNALS We believe that strong equity markets and encouraging Gross Domestic Product (GDP) data make a case that the "Great Recession" of 2008-2009 ended back in Third Quarter 2009. The third quarter of 2009 showed an increase of 2.2% in real GDP, and a much stronger GDP figure for the fourth quarter (advanced estimate)--an increase of 5.7%--was released on January 29, 2010. We believe it is, therefore, likely that a sustainable economic recovery of moderate amplitude has now begun. FIXED INCOME INVESTORS EXPERIENCED GAINS THAT WERE IN LINE WITH RISKS As the economic recovery gathered pace during the final three months of 2009, the fixed income markets began to confront the ugly truth that yield levels will likely move higher. Thus, a quarter that started with two reasonably positive months in October and November--during which 5-Year Treasury yields fell by 30 basis points (0.30%)--experienced a broad-based increase in rates during December. This reversed all of the gains and left longer-term Treasury yields higher by roughly 35-60 basis points (0.35-0.60%) for the final quarter of 2009. Barclays Capital U.S. Long Government Bond Index lost -0.6% during the Funds' semi-annual period (July 1, 2009-December 31, 2009). When all was said and done, the fixed-income markets had produced a wide assortment of returns during the last six months of 2009 that related directly to risk. THE CHARACTERISTICS OF THIS ECONOMIC CYCLE WERE--AND CONTINUE TO BE--QUITE DIFFERENT Evidence of the economic recovery has become fairly widespread. Still, the characteristics of this cycle are already very different from traditional recoveries. This difference stems in large part from the unique difficulties that landed the economy in trouble in the first place, and the unorthodox tools implemented by the government to fix these problems. Traditionally, recoveries have been led by the strength of consumer spending. But so far, consumers have been conspicuously missing as the issues of de-leveraging (debt reduction), uncertain employment, and restricted credit have conspired to keep them from opening their wallets. The poor health of the banking industry, in general, has also been a major contributor to the recession. Here again we find uneven conditions that are divided largely along the lines of size. The government made a major effort to support the most systemically important institutions. With that effort having been largely completed, numerous regional and smaller institutions that did not qualify as the most important under the government's programs are still working to repair their balance sheets and maintain adequate capital ratios. 3 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS PRESIDENT'S MESSAGE -- CONTINUED The employment picture remains under pressure, but it has been quietly experiencing steady improvement since reaching a bottom in the first half of 2009. The unemployment rate finished the year at 10%, but many believe this understates the true magnitude of the problem. Other employment statistics, such as the "U-6" unemployment, consider important employment issues, such as workers who have been forced to take part-time positions or who have become frustrated searching for a job. A SUBSTANTIAL ECONOMIC RECOVERY WILL TAKE TIME Normally the deepest recessions have historically produced the sharpest recoveries, but the probability of a recovery in 2010 occurring at a quick pace seems low because of what we believe will prove to be persistent joblessness at an above-average level, and because of ongoing credit restraint resulting from damage to the securitization markets. Unless the fixed-income markets reopen to the securitizing of lower-quality credit receivables such as credit cards, car loans, and other types of subprime loans, the lower middle-income segment in this country will not be able to leverage their income gains in the recovery. Although money flow data emanating from the mutual fund complex continues to show investors moving their invested assets from domestic stock funds to bond and international equity funds, recent results from a January Citigroup investor survey indicates that more than 80% of professional investors say they are overweight equities, with less than 20% saying they are overweight fixed-income. Tops on the list of investor concerns are government policy missteps, international tensions/terrorism, and the fragile condition of commercial real estate. Investors are relatively less concerned about inflation/deflation, the weak dollar, and the profit cycle. Favored sectors continue to include energy, technology and materials, with more defensive consumer staples, telecommunications, and utilities viewed as least attractive. The survey indicates that investors favor growth stocks over value stocks, despite the fact that value has outperformed growth since the market bottom in March 2009, (with the total returns of the Russell 3000 Growth and 3000 Value Indices, 66.5% and 72.0%, respectively, substantiating the market performance). This isn't surprising given that profit margins reached unduly depressed levels in 2009 and have been in a strong recovery mode since then. This is a normal occurrence at economic troughs and one that favors value stocks and lower-quality stocks in general, as the market enters the first leg of recovery. WE EXPECT THE FED TO BEGIN PUSHING UP RATES LATER IN 2010 Although a rate increase is not supported by anything the Fed is saying or doing right now, we expect this outcome, based largely on the view that the recovery in the labor markets may finally achieve job growth sufficient to start trimming the unemployment rate during the second half of 2010. However, the Fed's exit strategy remains unclear. Given all of the programs it has implemented, it has a lot more tools with which to work. Raising rates could be done early or late in the process. Furthermore, the Fed may not be sure exactly how it will remove the excess liquidity, which adds to the uncertainty. The worst sectors for calendar year 2009 were telecom and utilities, up 8.9% and 11.9% respectively. The pivot point for 2009 was March 9, 2009. That's when the market bottomed and defensive sectors stopped working. At the same time, low-quality, high-beta stocks rose to lead the market, up from the bottom--as confidence rose that many of the companies were priced for possible bankruptcy during 2009. Many of these stocks rose from the ashes and produced returns in excess of 100% for the year. These types of companies are more heavily represented in the consumer discretionary, basic materials, technology, and financial sectors. LOOKING AHEAD Considering the estimates for the S&P 500 Index for remainder of the Funds' fiscal year, which will end on June 30, 2010, the highest earnings growth rate expectations are found in energy, basic materials, and financials, all of which had large reductions in earnings in the last year--due to a retrenchment of commodity prices from the prior year or large charges from bad loans and investments. 4 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS PRESIDENT'S MESSAGE -- CONTINUED For bonds, active management and meticulous credit research will be even more critical during the next six months, and indeed, all of 2010. Rising rates present a looming challenge and with credit spreads much closer to normal, managing fixed-income securities will not be without its headwinds--although they are ones we are prepared to meet. WILMINGTON AGGRESSIVE ASSET ALLOCATION FUND Institutional Shares of the Wilmington Aggressive Asset Allocation Fund (the "Aggressive Fund" or "Fund") recorded a total return of 20.08% for the six months ended December 31, 2009. Positive in absolute terms, the Fund's performance was somewhat disappointing in relation to the results of its benchmarks. The Dow Jones Global Aggressive Portfolio Index (the DJ Aggressive Index), the Fund's primary benchmark, which includes a mix of equities from the United States, developed international markets and emerging markets returned 25.27%. The S&P 500 Index, which is dominated by large-capitalization U.S. companies, also appreciated more than the Fund, returning 22.59%. The Aggressive Fund's performance when measured against its Lipper Multi-Cap Core Funds universe was below average for the one-year period, placing in the 72nd percentile out of 795 funds, but was considerably better for the 3-year period (57th percentile out of 683 funds), and for the 5-year period (41st percentile out of 519 funds), based on total returns as of December 31, 2009. The Aggressive Fund trailed the DJ Aggressive Index for a couple of reasons. Subpar performance by some of the underlying funds, especially Wilmington Multi-Manager Large-Cap Fund played a role. Another factor was the Aggressive Fund's relatively large exposure to real assets, including commodity- and real estate-related securities and inflation-linked bonds, which it obtains by investing in Wilmington Multi-Manager Real Asset Fund. Real assets generally recorded solid gains in the second half of 2009 but did not keep pace with the equity markets, and they are only lightly represented in the DJ Aggressive Index. Over the long term--five years or more--the Aggressive Fund has outpaced both the S&P 500 Index and the average result of competing funds. The Fund has lagged the DJ Aggressive Index over these longer periods, however; in our view, the equal-weighting asset allocation scheme employed by the index makes it riskier than our Fund. As of December 31, 2009, the Aggressive Fund's holdings were as follows: - 40.4% Wilmington Multi-Manager International Fund - 30.1% Wilmington Multi-Manager Large-Cap Fund - 17.1% Wilmington Multi-Manager Real Asset Fund - 8.3% Wilmington Small-Cap Strategy Fund - 4.0% Vanguard High-Yield Corporate Fund - 0.1% Wilmington Prime Money Market Fund The following performance table compares the performance of Institutional and A Shares of the Aggressive Fund and its predecessor, the Aggressive Allocation CTF (a common trust fund), with that of the DJ Aggressive Index and the S&P 500 Index, since the commencement of operations of the Aggressive Allocation CTF on July 15, 2003 through December 31, 2009. The Aggressive Allocation CTF's performance (7/15/03-3/15/06) has been restated to reflect the annual deduction of fees and expenses applicable to Institutional and A Shares of the Aggressive Fund (i.e., restated to reflect class-specific expenses and including contractual investment adviser reimbursements to maintain expense limitations). The Aggressive Allocation CTF was not registered as a mutual fund under the Investment Company Act of 1940, as amended (the "1940 Act") and therefore was not subject to the investment restrictions, limitations, and diversification requirements imposed by the 1940 Act and the Internal Revenue Code 1986, as amended. If the Aggressive Allocation CTF had been registered under the 1940 Act, its performance may have been different. 5 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS PRESIDENT'S MESSAGE -- CONTINUED AGGRESSIVE ASSET ALLOCATION FUND
Average Annual Total Returns -------------------------------------------- SINCE SINCE INCEPTION INCEPTION DATE OF DATE OF SIX DEC. 20, JULY 15, MONTHS 1 YEAR 5 YEARS (1) 2005 (2) 2003 (1) ------ ------ ----------- --------- --------- Aggressive Fund -- Institutional Shares 20.08% 26.96% 1.24% -0.22% 5.25% -- A Shares (with sales charge)(3) 15.58% 22.09% 0.23% -1.34% 4.35% -- A Shares at NAV 19.82% 26.57% 0.95% -0.47% 4.93% DJ Aggressive Index 25.27% 38.99% 3.55% 1.47% 8.27% S&P 500 Index 22.59% 26.46% 0.42% -0.88% 3.75%
Fund Expense Ratios(4): Institutional Shares - 1.49% (gross & net), A Shares - 1.74% (gross & net) - ---------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. TOTAL RETURNS SHOWN IN THE TABLE ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. TOTAL RETURNS WOULD BE LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN WAIVED AND/OR REIMBURSED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY, IS NOT A DEPOSIT OF OR OTHER OBLIGATION OF OR GUARANTEED BY WILMINGTON TRUST OR ANY OTHER BANK OR ENTITY, AND IS SUBJECT TO RISKS INCLUDING A POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. (1) THE 5 YEAR AND SINCE INCEPTION RETURNS SHOWN ARE FOR THE PERIOD JULY 15, 2003 (COMMENCEMENT OF OPERATIONS FOR THE AGGRESSIVE ALLOCATION CTF) THROUGH DECEMBER 31, 2009. THE AGGRESSIVE FUND'S PERFORMANCE INCLUDES THE RESTATED PERFORMANCE OF THE AGGRESSIVE ALLOCATION CTF. (2) THE SINCE INCEPTION RETURNS SHOWN ARE FOR THE PERIOD DECEMBER 20, 2005 (COMMENCEMENT OF OPERATIONS FOR THE AGGRESSIVE FUND) THROUGH DECEMBER 31, 2009, WHICH IS THE PERIOD THE AGGRESSIVE FUND HAS OPERATED AS A MUTUAL FUND. (3) PERFORMANCE REFLECTS THE DEDUCTION OF THE 3.50% MAXIMUM FRONT-END SALES CHARGE. (4) THE EXPENSE RATIOS SHOWN ARE FROM THE MOST RECENT PROSPECTUS DATED NOVEMBER 1, 2009 AND WILL DIFFER FROM THE EXPENSE RATIOS DISCLOSED IN THE FINANCIAL HIGHLIGHTS TABLE IN THIS REPORT. NET EXPENSES ARE REDUCED BY CONTRACTUAL AND VOLUNTARY FEE WAIVER AGREEMENTS AND GROSS EXPENSES DO NOT REFLECT THE FEE WAIVERS. EXPENSE RATIOS SHOWN ALSO INCLUDE ACQUIRED FUND FEES AND EXPENSES NOT INCLUDED IN THE FINANCIAL HIGHLIGHTS TABLE. 6 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS PRESIDENT'S MESSAGE -- CONTINUED WILMINGTON CONSERVATIVE ASSET ALLOCATION FUND Institutional Shares of the Wilmington Conservative Asset Allocation Fund (the "Conservative Fund" or "Fund") recorded a total return of 10.27% for the six months ended December 31, 2009. Positive in absolute terms, the Fund's result slightly lagged those of its benchmarks. The Dow Jones Global Moderately Conservative Portfolio Index (the DJ Moderately Conservative Index), the Fund's primary benchmark, which includes a mix of equities from the United States, developed international markets, and emerging markets as well as bonds, returned 11.30%. The Fund's blended index benchmark, a mix of 40% S&P 500 Index and 60% Barclays Capital U.S. Intermediate Government/Credit Index, returned 10.91%. The Conservative Fund's performance when measured against its Lipper Mixed-Asset Target Allocation Conservative Funds universe was disappointing for the 1-year period, placing in the 83rd percentile out of 443 funds, but was better for the 3-year period (49th percentile out of 363 funds) and the 5-year period (36th percentile out of 231 funds), based on total returns as of December 31, 2009. The Conservative Fund trailed the DJ Moderately Conservative Index for a couple of reasons. Subpar performance by some of the underlying funds, including Wilmington Multi-Manager Large-Cap Fund played a role. Another factor was the Conservative Fund's exposure to real assets, including commodity-and real estate-related securities and inflation-linked bonds, which it obtains by investing in Wilmington Multi-Manager Real Asset Fund. Real assets generally recorded solid gains in the second half of 2009 but did not keep pace with the equity markets, and they are only lightly represented in the DJ Moderately Conservative Index. Over the long term--five years or more--the Conservative Fund has outpaced the average result of competing funds and performed in line with its blended index. The Fund has lagged the DJ Moderately Conservative Index over these longer periods, however; in our view, the equal-weighting asset allocation scheme employed by the index makes it riskier than our Fund. As of December 31, 2009, the Conservative Fund's holdings were as follows: - 45.5% Wilmington Short/Intermediate-Term Bond Fund - 14.3% Wilmington Multi-Manager International Fund - 12.2% Wilmington Multi-Manager Real Asset Fund - 11.2% Wilmington Multi-Manager Large-Cap Fund - 10.1% iShares Barclays TIPS Bond Fund - 3.6% Vanguard High-Yield Corporate Fund - 3.1% Wilmington Small-Cap Strategy Fund The following table compares the performance of Institutional and A Shares of the Conservative Fund and its predecessor, the Conservative Allocation CTF (a common trust fund), with that of the DJ Moderately Conservative Index and a Blended Index consisting of the weighted return of 40% of the S&P 500 Index and 60% Barclays Capital Intermediate Government/Credit Index, since the commencement of operations of the Conservative Allocation CTF (September 1, 2003) through December 31, 2009. The Conservative Allocation CTF's performance (9/1/03-3/15/06) has been restated to reflect the annual deduction of fees and expenses applicable to Institutional and A Shares of the Conservative Fund (i.e., restated to reflect class-specific expenses and including contractual investment adviser reimbursements to maintain expense limitations). The Conservative Allocation CTF was not registered as a mutual fund under the Investment Company Act of 1940, as amended (the "1940 Act") and therefore was not subject to the investment restrictions, limitations, and diversification requirements imposed by the 1940 Act and the Internal Revenue Code of 1986, as amended. If the Conservative Allocation CTF had been registered under the 1940 Act, its performance may have been different. 7 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS PRESIDENT'S MESSAGE -- CONTINUED CONSERVATIVE ASSET ALLOCATION FUND
Average Annual Total Returns -------------------------------------------- SINCE SINCE INCEPTION INCEPTION DATE OF DATE OF SIX DEC. 20, SEPT. 1, MONTHS 1 YEAR 5 YEARS (1) 2005 (2) 2003 (1) ------ ------ ----------- --------- --------- Conservative Fund -- Institutional Shares 10.27% 14.89% 3.27% 3.07% 4.52% -- A Shares (with sales charge)(3) 6.27% 10.53% 2.23% 1.92% 3.62% -- A Shares at NAV 10.16% 14.52% 2.96% 2.82% 4.20% DJ Moderately Conservative Index 11.30% 17.16% 3.75% 3.64% 6.11% Blended Index: 40% S&P 500 Index and 60% Barclays Capital Intermediate Government/Credit Index 10.91% 13.85% 3.26% 3.25% 4.49% Barclays Capital Intermediate Government/Credit Index 3.57% 5.24% 4.66% 5.45% 4.57% S&P 500 Index 22.59% 26.46% 0.42% -0.88% 3.67%
Fund Expense Ratios(4): Institutional Shares - 2.07% (gross) & 1.27% (net), A Shares - 2.32% (gross) & 1.52% (net) - ---------- PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE. SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THAT SHOWN HERE. TOTAL RETURNS SHOWN IN THE TABLE ASSUME THE REINVESTMENT OF ALL DISTRIBUTIONS AND DO NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF SHARES. TOTAL RETURNS WOULD BE LOWER HAD CERTAIN FEES AND EXPENSES NOT BEEN WAIVED AND/OR REIMBURSED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH-END IS AVAILABLE BY CALLING 800-336-9970. AN INVESTMENT IN THE FUND IS NOT INSURED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY, IS NOT A DEPOSIT OF OR OTHER OBLIGATION OF OR GUARANTEED BY WILMINGTON TRUST OR ANY OTHER BANK OR ENTITY, AND IS SUBJECT TO RISKS INCLUDING A POSSIBLE LOSS OF THE PRINCIPAL AMOUNT INVESTED. (1) THE FIVE YEARS AND SINCE INCEPTION RETURNS SHOWN INCLUDE PERFORMANCE FOR THE PERIOD SEPTEMBER 1, 2003 (COMMENCEMENT OF OPERATIONS FOR THE CONSERVATIVE ALLOCATION CTF) THROUGH DECEMBER 31, 2009. THE CONSERVATIVE FUND'S PERFORMANCE INCLUDES THE RESTATED PERFORMANCE OF THE CONSERVATIVE ALLOCATION CTF. (2) THE SINCE INCEPTION RETURNS SHOWN ARE FOR THE PERIOD DECEMBER 20, 2005 (COMMENCEMENT OF OPERATIONS FOR THE CONSERVATIVE FUND) THROUGH DECEMBER 31, 2009, WHICH IS THE PERIOD THE CONSERVATIVE FUND HAS OPERATED AS A MUTUAL FUND. (3) PERFORMANCE REFLECTS THE DEDUCTION OF THE 3.50% MAXIMUM FRONT-END SALES CHARGE. (4) THE EXPENSE RATIOS SHOWN ARE FROM THE MOST RECENT PROSPECTUS DATED NOVEMBER 1, 2009 AND WILL DIFFER FROM THE EXPENSE RATIOS DISCLOSED IN THE FINANCIAL HIGHLIGHTS TABLE IN THIS REPORT. NET EXPENSES ARE REDUCED BY CONTRACTUAL AND VOLUNTARY FEE WAIVER AGREEMENTS AND GROSS EXPENSES DO NOT REFLECT THE FEE WAIVERS. EXPENSE RATIOS SHOWN ALSO INCLUDE ACQUIRED FUND FEES AND EXPENSES NOT INCLUDED IN THE FINANCIAL HIGHLIGHTS TABLE. 8 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS PRESIDENT'S MESSAGE -- CONTINUED We thank you for your investment in the Wilmington Funds, and we look forward to reporting to you again six months hence. If you would like additional information on the Funds in the meantime, we invite you to visit www.wilmingtonfunds.com, or to consult your financial advisor. Sincerely, /s/ John J. Kelley John J. Kelley President January 29, 2010 YOU SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUNDS CAREFULLY BEFORE INVESTING. A PROSPECTUS WITH THIS AND OTHER INFORMATION MAY BE OBTAINED BY CALLING 800-336-9970 OR VISITING THE FUNDS' WEB SITE AT www.wilmingtonfunds.com. THE PROSPECTUS SHOULD BE READ CAREFULLY BEFORE INVESTING. MR. KELLEY'S COMMENTS REFLECT THE INVESTMENT ADVISER'S VIEWS GENERALLY REGARDING THE MARKET AND THE ECONOMY AND ARE COMPILED FROM THE INVESTMENT ADVISER'S RESEARCH. THESE COMMENTS REFLECT OPINIONS AS OF THE DATE WRITTEN AND ARE SUBJECT TO CHANGE AT ANY TIME. DISTRIBUTED BY PROFESSIONAL FUNDS DISTRIBUTOR, LLC. SEE FINANCIAL HIGHLIGHTS. 9 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS EXPENSE DISCLOSURE (UNAUDITED) DISCLOSURE OF FUND EXPENSES The following Expense Tables are shown so that you can understand the impact of fees on your investment. All mutual funds have operating expenses. As a shareholder of a Fund, you incur ongoing costs, including management fees, distribution (12b-1) fees, if any, and other Fund expenses. A Fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The following examples are intended to help you understand the ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The Expense Tables below illustrate your Fund's costs in two ways. - ACTUAL FUND RETURN AND EXPENSES. The first line of each table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during the period. - HYPOTHETICAL 5% RETURN AND EXPENSES. The second line of each table below provides information about hypothetical account values and hypothetical expenses based on the 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 the 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 tables 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, if any. Therefore, the second line of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher. The "Annualized Expense Ratio" reflects the actual expenses for the period indicated. 10 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS EXPENSE DISCLOSURE (UNAUDITED) -- CONTINUED FOR THE PERIOD JULY 1, 2009 TO DECEMBER 31, 2009 EXPENSE TABLES
BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 7/1/09 12/31/09 RATIO PERIOD* --------- --------- ---------- -------- AGGRESSIVE ASSET ALLOCATION FUND -- INSTITUTIONAL SHARES (1) Actual Fund Return ........................................... $1,000.00 $1,200.80 0.32% $1.78 Hypothetical 5% Return Before Expenses ....................... 1,000.00 1,023.58 0.32 1.63 AGGRESSIVE ASSET ALLOCATION FUND -- A SHARES (1) Actual Fund Return ........................................... $1,000.00 $1,198.20 0.57% $3.16 Hypothetical 5% Return Before Expenses ....................... 1,000.00 1,022.30 0.57 2.91 CONSERVATIVE ASSET ALLOCATION FUND -- INSTITUTIONAL SHARES (1) Actual Fund Return ........................................... $1,000.00 $1,102.70 0.46% $2.44 Hypothetical 5% Return Before Expenses ....................... 1,000.00 1,022.86 0.46 2.35 CONSERVATIVE ASSET ALLOCATION FUND -- A SHARES (1) Actual Fund Return ........................................... $1,000.00 $1,101.60 0.75% $3.97 Hypothetical 5% Return Before Expenses ....................... 1,000.00 1,021.38 0.75 3.83
- ---------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year, then divided by 365 (to reflect the one-half year period). (1) The Funds invest a substantial portion of their assets in other funds, which are registered investment companies. In addition to the expenses reflected above, the Funds also indirectly bear fees and expenses charged by the other funds. 11 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS DISCLOSURE OF PORTFOLIO HOLDINGS (UNAUDITED) PORTFOLIO HOLDINGS DECEMBER 31, 2009 The following tables present a summary of the portfolio holdings of each of the Wilmington Asset Allocation Funds as a percentage of its total investments. AGGRESSIVE ASSET ALLOCATION FUND Affiliated Investment Companies International Equity Fund ..... 40.4% U.S. Equity Funds ............. 38.4% Real Asset Fund ............... 17.1% Fixed Income Fund ............. 0.1% Non-Affiliated Investment Companies Fixed Income Fund ................ 4.0% ----- 100.0% ===== CONSERVATIVE ASSET ALLOCATION FUND Affiliated Investment Companies Fixed Income Fund ............. 45.5% U.S. Equity Funds ............. 14.3% International Equity Fund ..... 14.3% Real Asset Fund ............... 12.2% Non-Affiliated Investment Companies Fixed Income Fund ................ 13.7% ----- 100.0% =====
DISCLOSURE OF PORTFOLIO HOLDINGS The Trust files a complete schedule of investments with the SEC for its first and third fiscal quarters on Form N-Q. Form N-Q is available, without charge, by visiting the SEC's website at http://www.sec.gov, or it may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the Public Reference Room). 12 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS AGGRESSIVE ASSET ALLOCATION FUND INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets)
VALUE SHARES (NOTE 2) --------- ----------- AFFILIATED INVESTMENT COMPANIES++ -- 95.8% Wilmington Multi-Manager International Fund ................ 4,373,866 $28,911,253 Wilmington Multi-Manager Large-Cap Fund .................... 2,094,716 21,575,577 Wilmington Multi-Manager Real Asset Fund ................... 959,967 12,277,982 Wilmington Prime Money Market Fund ....................... 37,018 37,018 Wilmington Small-Cap Strategy Fund ..................... 735,275 5,926,318 ----------- TOTAL AFFILIATED INVESTMENT COMPANIES (COST $68,184,591) ................... 68,728,148 -----------
VALUE SHARES (NOTE 2) --------- ----------- NON-AFFILIATED INVESTMENT COMPANIES -- 4.0% Vanguard High-Yield Corporate Fund - Admiral Shares ..................... 521,891 $ 2,854,742 ----------- TOTAL NON-AFFILIATED INVESTMENT COMPANIES (COST $2,312,881) .................... 2,854,742 ----------- TOTAL INVESTMENTS -- 99.8% (Cost $70,497,472)+ ..................... 71,582,890 OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2% .................. 166,201 ----------- NET ASSETS -- 100.0% ....................... $71,749,091 ===========
- ---------- ++ The Fund invests in the Institutional Shares of the Affiliated Investment Companies. + The cost for Federal income tax purposes is $81,451,924. At December 31, 2009 net unrealized depreciation was $9,869,034. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $1,266,183 and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $11,135,217. The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements):
TOTAL LEVEL 2 LEVEL 3 VALUE AT LEVEL 1 SIGNIFICANT SIGNIFICANT DECEMBER QUOTED OBSERVABLE UNOBSERVABLE 31, 2009 PRICE INPUT INPUT ----------- ----------- ----------- ------------ INVESTMENTS IN SECURITIES: Affiliated Investment Companies ........ $68,728,148 $68,728,148 $-- $-- Non-Affiliated Investment Companies .... 2,854,742 2,854,742 -- -- ----------- ----------- --- --- Total ............................... $71,582,890 $71,582,890 $-- $-- =========== =========== === ===
The accompanying notes are an integral part of the financial statements. 13 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS CONSERVATIVE ASSET ALLOCATION FUND INVESTMENTS / DECEMBER 31, 2009 (UNAUDITED) (Showing Percentage of Net Assets)
VALUE SHARES (NOTE 2) --------- ----------- AFFILIATED INVESTMENT COMPANIES++ -- 86.3% Wilmington Multi-Manager International Fund ................ 1,477,696 $ 9,767,572 Wilmington Multi-Manager Large-Cap Fund .................... 743,056 7,653,481 Wilmington Multi-Manager Real Asset Fund ................... 650,407 8,318,707 Wilmington Short/ Intermediate-Term Bond Fund ......................... 2,942,933 30,989,081 Wilmington Small-Cap Strategy Fund ..................... 265,545 2,140,292 ----------- TOTAL AFFILIATED INVESTMENT COMPANIES (COST $55,826,521) ................... 58,869,133 -----------
VALUE SHARES (NOTE 2) --------- ----------- NON-AFFILIATED INVESTMENT COMPANIES -- 13.6% iShares Barclays U.S. ................ Treasury Inflation Protected Securities Index Fund ........................ 66,000 $ 6,857,400 Vanguard High-Yield Corporate Fund - Admiral Shares .................... 448,081 2,451,003 ----------- TOTAL NON-AFFILIATED INVESTMENT COMPANIES (COST $8,831,564) .................... 9,308,403 ----------- TOTAL INVESTMENTS -- 99.9% (Cost $64,658,085)+ ..................... 68,177,536 OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.1% .................. 65,436 ----------- NET ASSETS -- 100.0% ....................... $68,242,972 ===========
- ---------- ++ The Fund invests in the Institutional Shares of the Affiliated Investment Companies. + The cost for Federal income tax purposes is $66,066,399. At December 31, 2009, net unrealized appreciation was $2,111,137. This consisted of aggregate gross unrealized appreciation for all securities for which there was an excess of market value over tax cost of $2,111,137 and aggregate gross unrealized depreciation for all securities for which there was an excess of tax cost over market value of $0. The following table provides a summary of inputs used to value the Fund's net assets as of December 31, 2009 (see Note 2 in the Notes to Financial Statements):
TOTAL LEVEL 2 LEVEL 3 VALUE AT LEVEL 1 SIGNIFICANT SIGNIFICANT DECEMBER QUOTED OBSERVABLE UNOBSERVABLE 31, 2009 PRICE INPUT INPUT ----------- ----------- ----------- ------------ INVESTMENTS IN SECURITIES: Affiliated Investment Companies ........ $58,869,133 $58,869,133 $-- $-- Non-Affiliated Investment Companies .... 9,308,403 9,308,403 -- -- ----------- ----------- --- --- Total ............................... $68,177,536 $68,177,536 $-- $-- =========== =========== === ===
The accompanying notes are an integral part of the financial statements. 14 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS FINANCIAL STATEMENTS STATEMENTS OF ASSETS AND LIABILITIES December 31, 2009 (Unaudited)
AGGRESSIVE CONSERVATIVE ASSET ASSET ALLOCATION ALLOCATION FUND FUND ------------ ------------ ASSETS: Investments in affiliated investment companies, at market value* ....................................... $ 68,728,148 $58,869,133 Investments in non-affiliated investment companies, at market value** ...................................... 2,854,742 9,308,403 Receivable for fund shares sold ........................... 222,181 57,018 Dividends receivable ...................................... 20,060 184,326 Other assets .............................................. 20,910 15,584 ------------ ----------- Total assets .............................................. 71,846,041 68,434,464 ------------ ----------- LIABILITIES: Payable for fund shares redeemed .......................... 18,304 56,813 Payable for investments purchased ......................... 45,000 103,052 Other accrued expenses .................................... 33,646 31,627 ------------ ----------- Total liabilities ......................................... 96,950 191,492 ------------ ----------- NET ASSETS ................................................ $ 71,749,091 $68,242,972 ============ =========== NET ASSETS CONSIST OF: Paid-in capital ........................................... $ 85,229,400 $67,467,181 Distributions in excess of net investment income .......... (19,926) (101,491) Accumulated net realized loss on investments .............. (14,545,801) (2,642,169) Net unrealized appreciation of investments ................ 1,085,418 3,519,451 ------------ ----------- NET ASSETS ................................................ $ 71,749,091 $68,242,972 ============ =========== NET ASSETS BY SHARE CLASS: Institutional Shares ................................... $ 67,294,340 $57,866,624 A Shares ............................................... 4,454,751 10,376,348 ------------ ----------- $ 71,749,091 $68,242,972 ============ =========== SHARES OF BENEFICIAL INTEREST OUTSTANDING: ($0.01 par value, unlimited authorized shares): Institutional Shares ................................... 8,278,051 5,901,169 A Shares ............................................... 549,071 1,060,082 NET ASSET VALUE PER SHARE: Institutional Shares (net asset value (NAV), offering and redemption price) ...................... $ 8.13 $ 9.81 ------------ ----------- A Shares (net asset value (NAV) and redemption price) .. $ 8.11 $ 9.79 ------------ ----------- A Shares (public offering price -- NAV / 0.965) ........ $ 8.40 $ 10.15 ------------ ----------- *Investments in affiliated investment companies, at cost ................................................ $ 68,184,591 $55,826,521 **Investments in non-affiliated investment companies, at cost ..................................... $ 2,312,881 $ 8,831,564
The accompanying notes are an integral part of the financial statements. 15 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS FINANCIAL STATEMENTS -- CONTINUED STATEMENTS OF OPERATIONS For the Six-Month Period Ended December 31, 2009 (Unaudited)
AGGRESSIVE CONSERVATIVE ASSET ASSET ALLOCATION ALLOCATION FUND FUND ------------ ------------ INVESTMENT INCOME: Dividends from affiliated investment companies ......... $ 450,048 $ 202,214 Dividends from non-affiliated investment companies ..... 111,605 572,629 ----------- ----------- Total investment income ................................ 561,653 774,843 ----------- ----------- EXPENSES: Administration fees .................................... 5,081 3,621 Sub-administration and accounting fees ................. 11,327 10,916 Custody fees ........................................... 6,272 7,010 Transfer agent fees .................................... 15,233 9,386 Distribution fees - A Shares ........................... 5,201 11,290 Professional fees ...................................... 20,448 20,802 Reports to shareholders ................................ 11,244 10,434 Registration fees ...................................... 13,065 19,322 Trustees' fees ......................................... 15,514 17,480 Compliance services fees ............................... 4,541 5,074 Other .................................................. 4,544 4,615 ----------- ----------- Total expenses ......................................... 112,470 119,950 ----------- ----------- Net investment income .................................. 449,183 654,893 ----------- ----------- NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain from affiliated investment companies ........................................... -- 191,695 Net realized loss from non-affiliated investment companies ........................................... (1,724,842) (2,196,189) Realized gain distributions received from investment companies ................................ -- 306,495 Net change in unrealized appreciation of investments in investment companies ................................ 12,857,794 4,534,208 ----------- ----------- Net gain on investments ................................ 11,132,952 2,836,209 ----------- ----------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ... $11,582,135 $ 3,491,102 =========== ===========
The accompanying notes are an integral part of the financial statements. 16 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS FINANCIAL STATEMENTS -- CONTINUED STATEMENTS OF CHANGES IN NET ASSETS
AGGRESSIVE ASSET ALLOCATION FUND -------------------------- FOR THE SIX-MONTH PERIOD ENDED FOR THE DECEMBER YEAR ENDED 31, 2009 JUNE 30, (UNAUDITED) 2009 ----------- ------------ INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ................................. $ 449,183 $ 1,013,380 Net realized loss from investments .................... (1,724,842) (11,835,954) Net change in unrealized appreciation (depreciation) on investments ..................................... 12,857,794 (11,187,000) ----------- ------------ Net increase (decrease) in net assets resulting from operations ......................................... 11,582,135 (22,009,574) ----------- ------------ Distributions to shareholders from:(1) Net investment income: Institutional Shares ............................... (478,051) (925,470) A Shares ........................................... (27,235) (50,769) Net realized gains: Institutional Shares ............................... -- (3,562,363) A Shares ........................................... -- (234,806) ----------- ------------ Total distributions ...................................... (505,286) (4,773,408) ----------- ------------ Fund share transactions (Note 5): Proceeds from shares sold: Institutional Shares ............................... 13,064,831 37,786,357 A Shares ........................................... 939,748 719,913 Cost of shares issued on reinvestment of distributions: Institutional Shares ............................... 124,779 3,312,030 A Shares ........................................... 26,481 279,201 Cost of shares redeemed: Institutional Shares ............................... (8,102,165) (21,250,879) A Shares ........................................... (368,946) (798,099) ----------- ------------ Net increase in net assets from Fund share transactions .. 5,684,728 20,048,523 ----------- ------------ Total increase (decrease) in net assets .................. 16,761,577 (6,734,459) NET ASSETS: Beginning of Period ................................... 54,987,514 61,721,973 ----------- ------------ End of Period ......................................... $71,749,091 $ 54,987,514 =========== ============ Undistributed (distributions in excess of) net investment income ................................................ $ (19,926) $ 36,117 ----------- ------------
(1) For financial reporting purposes, certain distributions from net investment income for Federal income tax purposes have been reclassified to distributions from realized gains. The accompanying notes are an integral part of the financial statements. 17 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS FINANCIAL STATEMENTS -- CONTINUED STATEMENTS OF CHANGES IN NET ASSETS
CONSERVATIVE ASSET ALLOCATION FUND -------------------------- FOR THE SIX-MONTH PERIOD ENDED FOR THE DECEMBER YEAR ENDED 31, 2009 JUNE 30, (UNAUDITED) 2009 ------------ ----------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ................................. $ 654,893 $ 406,560 Net realized loss from investments .................... (1,697,999) (868,956) Net change in unrealized appreciation (depreciation) on investments ..................................... 4,534,208 (555,063) ------------ ----------- Net increase (decrease) in net assets resulting from operations ............................................ 3,491,102 (1,017,459) ------------ ----------- Distributions to shareholders from:(1) Net investment income: Institutional Shares ............................... (551,073) (303,056) A Shares ........................................... (117,366) (89,843) Net realized gains: Institutional Shares ............................... (84,485) (124,442) A Shares ........................................... (15,134) (49,430) ------------ ----------- Total distributions ...................................... (768,058) (566,771) ------------ ----------- Fund share transactions (Note 5): Proceeds from shares sold: Institutional Shares ............................... 40,411,075 7,745,208 A Shares ........................................... 423,777 774,189 Proceeds from mergers (Note 8) Institutional Shares ............................... 15,358,229 -- A Shares ........................................... 8,139,354 -- Cost of shares issued on reinvestment of distributions: Institutional Shares ............................... 499,599 353,204 A Shares ........................................... 124,137 135,917 Cost of shares redeemed: Institutional Shares ............................... (13,552,528) (2,166,743) A Shares ........................................... (2,306,351) (1,670,790) ------------ ----------- Net increase in net assets from Fund share transactions .. 49,097,292 5,170,985 ------------ ----------- Total increase in net assets ............................. 51,820,336 3,586,755 NET ASSETS: Beginning of Period ................................... 16,422,636 12,835,881 ------------ ----------- End of Period ......................................... $ 68,242,972 $16,422,636 ============ =========== Undistributed (distributions in excess of) net investment income ..................................... $ (101,491) $ 11,674 ------------ -----------
(1) For financial reporting purposes, certain distributions from net investment income for Federal income tax purposes have been reclassified to distributions from realized gains. The accompanying notes are an integral part of the financial statements. 18 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS FINANCIAL HIGHLIGHTS The following tables include selected data for a share outstanding throughout each period and other performance information derived from the financial statements. The total returns in the tables represent the rate an investor would have earned or lost on an investment in the Funds (assuming reinvestment of all dividends and distributions). This information should be read in conjunction with the financial statements and notes thereto.
FOR THE SIX-MONTH FOR THE PERIOD PERIOD ENDED DECEMBER DECEMBER FOR THE YEARS ENDED JUNE 30, 20, 2005(1) 31, 2009 ----------------------------- THROUGH (UNAUDITED) 2009 2008 2007 JUNE 30, 2006 ----------- ------- ------- ------- ------------- AGGRESSIVE ASSET ALLOCATION FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ............... $ 6.82 $ 10.93 $ 12.20 $ 10.55 $ 10.00 ------- ------- ------- ------- ------- INVESTMENT OPERATIONS: Net investment income(2) .......... 0.05 0.15 0.20 0.10 0.11 Net realized and unrealized gain (loss) on investments ..... 1.32 (3.54) (0.78) 1.81 0.50 ------- ------- ------- ------- ------- Total from investment operations .................. 1.37 (3.39) (0.58) 1.91 0.61 ------- ------- ------- ------- ------- DISTRIBUTIONS:(3) From net investment income ........ (0.06) (0.14) (0.20) (0.10) (0.06) From net realized gains ........... -- (0.58) (0.49) (0.16) -- ------- ------- ------- ------- ------- Total distributions ............ (0.06) (0.72) (0.69) (0.26) (0.06) ------- ------- ------- ------- ------- NET ASSET VALUE -- END OF PERIOD ..... $ 8.13 $ 6.82 $ 10.93 $ 12.20 $ 10.55 ======= ======= ======= ======= ======= TOTAL RETURN ......................... 20.08%** (30.63)% (5.14)% 18.25% 6.08%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations .. 0.32%* 0.40% 0.35% 0.50% 0.50%* Excluding expense limitations .. 0.32%* 0.41% 0.36% 0.52% 1.48%* Net investment income ............. 1.37%* 1.97% 1.67% 0.90% 1.90%* Portfolio turnover rate ........... 7%** 59% 23% 14% 24%** Net assets at end of period (000 omitted) ..................... $67,294 $51,823 $56,985 $53,249 $23,772
- ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) The net investment income per share was calculated using the average shares outstanding method. (3) For financial reporting purposes, certain distributions from net investment income for Federal income tax purposes have been reclassified to distributions from realized gains. The accompanying notes are an integral part of the financial statements. 19 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS FINANCIAL HIGHLIGHTS -- CONTINUED
FOR THE SIX-MONTH FOR THE PERIOD PERIOD ENDED DECEMBER DECEMBER FOR THE YEARS ENDED JUNE 30, 20, 2005(1) 31, 2009 ----------------------------- THROUGH (UNAUDITED) 2009 2008 2007 JUNE 30, 2006 ----------- ------- ------- ------- ------------- AGGRESSIVE ASSET ALLOCATION FUND -- A SHARES NET ASSET VALUE -- BEGINNING OF PERIOD $ 6.81 $ 10.92 $12.19 $10.54 $10.00 ------ ------- ------ ------ ------ INVESTMENT OPERATIONS: Net investment income(2) .......... 0.04 0.12 0.17 0.08 0.11 Net realized and unrealized gain (loss) on investments ..... 1.31 (3.53) (0.78) 1.80 0.48 ------ ------- ------ ------ ------ Total from investment operations .................. 1.35 (3.41) (0.61) 1.88 0.59 ------ ------- ------ ------ ------ DISTRIBUTIONS:(3) From net investment income ........ (0.05) (0.12) (0.17) (0.07) (0.05) From net realized gains ........... -- (0.58) (0.49) (0.16) -- ------ ------- ------ ------ ------ Total distributions ............ (0.05) (0.70) (0.66) (0.23) (0.05) ------ ------- ------ ------ ------ NET ASSET VALUE -- END OF PERIOD ..... $ 8.11 $ 6.81 $10.92 $12.19 $10.54 ====== ======= ====== ====== ====== TOTAL RETURN(4) ...................... 19.82%** (30.79)% (5.37)% 18.01% 5.93%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations .. 0.57%* 0.65% 0.60% 0.75% 0.75%* Excluding expense limitations .. 0.57%* 0.66% 0.61% 0.76% 3.59%* Net investment income ............. 1.13%* 1.63% 1.41% 0.69% 1.90%* Portfolio turnover rate ........... 7%** 59% 23% 14% 24%** Net assets at end of period (000 omitted) ..................... $4,455 $ 3,165 $4,737 $5,070 $1,614
- ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) The net investment income per share was calculated using the average shares outstanding method. (3) For financial reporting purposes, certain distributions from net investment income for Federal income tax purposes have been reclassified to distributions from realized gains. (4) Total return does not reflect the impact of the maximum front-end sales load of 3.50%. If reflected, the return would be lower. The accompanying notes are an integral part of the financial statements. 20 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS FINANCIAL HIGHLIGHTS -- CONTINUED
FOR THE SIX-MONTH FOR THE PERIOD PERIOD ENDED DECEMBER DECEMBER FOR THE YEARS ENDED JUNE 30, 20, 2005(1) 31, 2009 ----------------------------- THROUGH (UNAUDITED) 2009 2008 2007 JUNE 30, 2006 ----------- ------- ------- ------- ------------- CONSERVATIVE ASSET ALLOCATION FUND -- INSTITUTIONAL SHARES NET ASSET VALUE -- BEGINNING OF PERIOD ............................ $ 9.04 $ 10.55 $10.81 $10.17 $10.00 ------- ------- ------ ------ ------ INVESTMENT OPERATIONS: Net investment income(2) .......... 0.14 0.31 0.31 0.31 0.16 Net realized and unrealized gain (loss) on investments ..... 0.79 (1.41) (0.14) 0.65 0.10 ------- ------- ------ ------ ------ Total from investment operations .................. 0.93 (1.10) 0.17 0.96 0.26 ------- ------- ------ ------ ------ DISTRIBUTIONS:(3) From net investment income ........ (0.15) (0.27) (0.30) (0.27) (0.09) From net realized gains ........... (0.01) (0.14) (0.13) (0.05) -- ------- ------- ------ ------ ------ Total distributions ............ (0.16) (0.41) (0.43) (0.32) (0.09) ------- ------- ------ ------ ------ NET ASSET VALUE -- END OF PERIOD ..... $ 9.81 $ 9.04 $10.55 $10.81 $10.17 ======= ======= ====== ====== ====== TOTAL RETURN ......................... 10.27%** (10.30)% 1.58% 9.62% 2.59%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations .. 0.46%* 0.50% 0.50% 0.50% 0.50%* Excluding expense limitations .. 0.46%* 1.30% 1.43% 3.08% 10.76%* Net investment income ............. 2.85%* 3.42% 2.83% 2.86% 3.05%* Portfolio turnover rate ........... 51%** 31% 25% 47% 23%** Net assets at end of period (000 omitted) ..................... $57,867 $13,021 $8,058 $7,894 $2,725
- ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) The net investment income per share was calculated using the average shares outstanding method. (3) For financial reporting purposes, certain distributions from net investment income for Federal income tax purposes have been reclassified to distributions from realized gains. The accompanying notes are an integral part of the financial statements. 21 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS FINANCIAL HIGHLIGHTS -- CONTINUED
FOR THE SIX-MONTH FOR THE PERIOD PERIOD ENDED DECEMBER DECEMBER FOR THE YEARS ENDED JUNE 30, 20, 2005(1) 31, 2009 ----------------------------- THROUGH (UNAUDITED) 2009 2008 2007 JUNE 30, 2006 ----------- ------- ------- ------- ------------- CONSERVATIVE ASSET ALLOCATION FUND -- A SHARES NET ASSET VALUE -- BEGINNING OF PERIOD $ 9.02 $ 10.54 $10.80 $10.17 $10.00 ------- ------- ------ ------ ------ INVESTMENT OPERATIONS: Net investment income(2) .......... 0.13 0.28 0.28 0.27 0.19 Net realized and unrealized gain (loss) on investments ..... 0.78 (1.41) (0.13) 0.66 0.06 ------- ------- ------ ------ ------ Total from investment operations .................. 0.91 (1.13) 0.15 0.93 0.25 ------- ------- ------ ------ ------ DISTRIBUTIONS:(3) From net investment income ........ (0.13) (0.25) (0.28) (0.25) (0.08) From net realized gains ........... (0.01) (0.14) (0.13) (0.05) -- ------- ------- ------ ------ ------ Total distributions ............ (0.14) (0.39) (0.41) (0.30) (0.08) ------- ------- ------ ------ ------ NET ASSET VALUE -- END OF PERIOD ..... $ 9.79 $ 9.02 $10.54 $10.80 $10.17 ======= ======= ====== ====== ====== TOTAL RETURN(4) ...................... 10.16%** (10.57)% 1.35% 9.30% 2.53%** RATIOS (TO AVERAGE NET ASSETS)/ SUPPLEMENTAL DATA: Expenses: Including expense limitations .. 0.75%* 0.75% 0.75% 0.75% 0.75%* Excluding expense limitations .. 0.75%* 1.56% 1.68% 3.73% 10.98%* Net investment income ............. 2.59%* 3.02% 2.61% 2.57% 3.46%* Portfolio turnover rate ........... 51%** 31% 25% 47% 23%** Net assets at end of period (000 omitted) ..................... $10,376 $ 3,402 $4,777 $3,273 $ 723
- ---------- * Annualized. ** Not annualized. (1) Commencement of operations. (2) The net investment income per share was calculated using the average shares outstanding method. (3) For financial reporting purposes, certain distributions from net investment income for Federal income tax purposes have been reclassified to distributions from realized gains. (4) Total return does not reflect the impact of the maximum front-end sales load of 3.50%. If reflected, the return would be lower. The accompanying notes are an integral part of the financial statements. 22 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 1. DESCRIPTION OF THE FUNDS. WT Mutual Fund (the "Trust") is registered under the Investment Company Act of 1940, as amended, (the "1940 Act") as an open-end management investment company and was organized as a Delaware statutory trust on June 1, 1994. The Amended and Restated Agreement and Declaration of Trust permits the Board of Trustees (the "Trustees") to establish series of shares, each of which constitutes a series separate and distinct from the shares of other series. As of December 31, 2009, the Trust offered 12 series, two of which are included in these financial statements. The two series (each, a "Fund" and collectively, the "Funds") included are: Wilmington Aggressive Asset Allocation Fund ("Aggressive Asset Allocation Fund") and Wilmington Conservative Asset Allocation Fund ("Conservative Asset Allocation Fund") (collectively, the "Asset Allocation Funds"). The Asset Allocation Funds will primarily invest in other open-end investment companies (mutual funds) that are series of the Trust (collectively, the "Affiliated Underlying Funds"). The Asset Allocation Funds will also invest in other mutual funds that are not series of the Trust (collectively, the "Non-Affiliated Underlying Funds"). The Affiliated and Non-Affiliated Underlying Funds include funds that invest in U.S. and foreign equity securities, debt securities and money market instruments. The Underlying Funds' financial statements are included in separate reports. Each Fund offers two classes of shares: Institutional Shares and A Shares. All classes of shares have identical voting, dividend and liquidation rights. Institutional Shares are offered to retirement plans and other institutional investors. A Shares are available to all investors and are subject to a Rule 12b-1 distribution fee and a maximum front-end sales charge of 3.50%. 2. SIGNIFICANT ACCOUNTING POLICIES. The following is a summary of the significant accounting policies of the Funds: SECURITY VALUATION. Investments in the Underlying Funds are valued at each fund's net asset value determined as of the close of business of the New York Stock Exchange (generally 4:00 p.m. Eastern time). Securities traded on the NASDAQ Stock Market, Inc. ("NASDAQ") are valued in accordance with the NASDAQ Official Closing Price, which may not be the last sale price. Price information for listed securities is taken from the exchange where the security is primarily traded. Securities with a remaining maturity of 60 days or less are valued at amortized cost, which approximates market value, unless the Trustees determine that this does not represent fair value. When a Fund uses fair value pricing to determine NAV, securities will not be priced on the basis of quotations from the primary market in which they are traded, but rather may be priced by another method that the Trustees believe accurately reflects fair value. The Funds' policy is intended to result in a calculation of a Fund's NAV that fairly reflects security values as of the time of pricing. However, fair values determined pursuant to a Fund's procedures may not accurately reflect the price that the Fund could obtain for a security if it were to dispose of that security as of the time of pricing. The Funds utilize a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: - Level 1 - quoted prices in active markets for identical securities - Level 2 - prices determined using other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.) - Level 3 - prices determined using significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) 23 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED A summary of the inputs used to value the Funds' net assets by each major security type is disclosed at the end of the Schedule of Investments for each Fund. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. FEDERAL INCOME TAXES. Each Fund is treated as a separate entity for Federal income tax purposes and intends to qualify as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended, and to distribute substantially all of its income to its shareholders. Therefore, no Federal income tax provision has been made. Tax positions taken or expected to be taken in the course of preparing the Funds' tax returns are evaluated to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Management has analyzed the Funds' tax positions and has concluded that no provision for income tax is required in the Funds' financial statements. The Funds' Federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. SECURITY TRANSACTIONS AND INVESTMENT INCOME. Investment security transactions are accounted for on a trade date basis. Each Fund uses the specific identification method for determining realized gains and losses on investments for both financial and Federal income tax reporting purposes. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis and includes the amortization of premium and accretion of discount. The Funds record expenses as incurred. Common expenses of the Trust are allocated on a pro rata basis among the series based on relative net assets. In addition to the expenses reflected on the Statements of Operations, the Funds indirectly bear the investment advisory fees and other expenses of the Underlying Funds in which they invest. Because each of the Underlying Funds has varied expense and fee levels, and the Funds may own different amounts of shares of these funds at different times, the amount of fees and expenses incurred indirectly will vary. CLASS ACCOUNTING. In calculating net asset value per share for each class, investment income, realized and unrealized gains, and losses and expenses other than class-specific expenses are allocated daily to each class of shares based upon the proportion of net assets of each class at the beginning of each day. Expenses relating to a specific class are charged directly to that class. DISTRIBUTIONS. Distributions from net investment income, if any, are declared and paid to shareholders quarterly. Distributions from net realized gains, if any, are declared and paid to shareholders annually. USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 3. ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES. Rodney Square Management Corporation ("RSMC"), a wholly owned subsidiary of Wilmington Trust Corporation, serves as an investment adviser to the Funds. RSMC does not receive a fee directly from the Asset Allocation Funds for its services. Wilmington Trust Investment Management, LLC ("WTIM"), also a wholly owned subsidiary of Wilmington Trust Corporation and under common control with RSMC, provides certain investment services, information, advice, assistance and facilities, and performs research, statistical and investment services pursuant to a sub-advisory agreement among the Trust, RSMC and WTIM. WTIM does not 24 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED receive a fee from the Funds for its services. RSMC serves as investment adviser for each of the Underlying Funds, and WTIM serves as sub-adviser for each of the Underlying Funds. RSMC has contractually agreed to reimburse operating expenses (excluding taxes, extraordinary expenses, brokerage commissions and interest) to the extent that total annual Fund operating expenses, excluding class-specific expenses (such as Rule 12b-1 or shareholder services fees), exceed the following percentages of average daily net assets:
EXPENSE LIMITATION* EXPIRATION DATE ------------------- ---------------- Aggressive Asset Allocation Fund .... 0.50% October 31, 2013 Conservative Asset Allocation Fund .. 0.50% October 31, 2013
- ---------- * This expense limitation will remain in place until its expiration date, unless the Trustees approve its earlier termination. The Funds' Chief Compliance Officer is employed and compensated by RSMC. RSMC provides compliance services to the Funds pursuant to a Compliance Services Agreement. For these services, the Trust pays RSMC an annual fee equal to three-fourths of the Chief Compliance Officer's total compensation. The fees for these services for the six-month period ended December 31, 2009 are shown separately on the Statements of Operations. RSMC provides administrative services to the Funds pursuant to an Administration Agreement. For these services, RSMC receives a fee at the annual rate of 0.0185% of the Trust's first $2 billion of total aggregate daily net assets; 0.0175% of the Trust's next $2 billion of total aggregate daily net assets; 0.0125% of the Trust's next $2 billion of total aggregate daily net assets; and 0.0080% of the Trust's total aggregate daily net assets in excess of $6 billion. The fees paid to RSMC for these services for the six-month period ended December 31, 2009 are shown separately on the Statements of Operations. PNC Global Investment Servicing (U.S.), Inc. provides sub-administration, accounting, and transfer agent services pursuant to an agreement with RSMC and the Trust for which it receives fees directly from the Funds. COMPENSATION OF TRUSTEES AND OFFICERS. Except for the Funds' Chief Compliance Officer, Trustees and Officers of the Funds who are employees or officers of RSMC or WTIM do not receive any compensation from the Funds. Trustees of the Funds who are not employees or officers of RSMC or WTIM receive compensation and reimbursement of expenses from the Funds. Under a Deferred Compensation Plan (the "Plan") adopted August 15, 2002, a disinterested Trustee may elect to defer receipt of all, or a portion, of their annual compensation. Deferred amounts are invested in shares of a series of the Trust and remain so until distributed in accordance with the Plan. Trustees' fees reflected in the accompanying financial statements include total compensation earned, whether elected to be paid in cash or deferred under the Plan. DISTRIBUTION FEES. The A Shares of the Fund have adopted a distribution plan under Rule 12b-1 under the 1940 Act that allows each Fund to pay a fee for the sale and distribution of A Shares, and for services provided to A Shares shareholders. The 12b-1 Plan provides for a maximum distribution fee at an annual rate of 0.25% of each Fund's average daily net assets of the A Shares. Wilmington Trust Company ("WTC"), an affiliate of RSMC, serves as custodian, and PFPC Trust Company serves as sub-custodian to the Funds. The Funds pay WTC for its services as custodian, and WTC pays PFPC Trust Company for its services as sub-custodian. The fees for these services for the six-month period ended December 31, 2009 are shown separately on the Statements of Operations. 25 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED 4. INVESTMENT SECURITIES TRANSACTIONS. During the six-month period ended December 31, 2009, purchases and sales of investment securities (excluding short-term investments) were as follows:
AGGRESSIVE ASSET CONSERVATIVE ASSET ALLOCATION FUND ALLOCATION FUND ---------------- ------------------ Purchases .. $10,241,342 $47,744,833 Sales ...... 4,764,782 22,460,938
5. CAPITAL SHARE TRANSACTIONS. Transactions in shares of capital stock for the six-month period ended December 31, 2009 and the year ended June 30, 2009 for the Institutional Shares and A Shares were as follows:
FOR THE SIX-MONTH PERIOD ENDED FOR THE YEAR ENDED DECEMBER 31, 2009 JUNE 30, 2009 ------------------------ ------------------------ INSTITUTIONAL A SHARES INSTITUTIONAL A SHARES ------------- -------- ------------- -------- AGGRESSIVE ASSET ALLOCATION FUND Sold ............................. 1,731,406 128,866 4,894,535 101,299 Issued on reinvestment of distributions ................. 15,551 3,308 509,437 42,906 Redeemed ......................... (1,064,178) (47,813) (3,020,542) (113,263) ---------- -------- ---------- -------- Net increase ..................... 682,779 84,361 2,383,430 30,942 ========== ======== ========== ======== CONSERVATIVE ASSET ALLOCATION FUND Sold ............................. 4,189,715 45,274 878,558 85,281 Issued in fund merger (Note 8) ... 1,628,014 864,369 -- -- Issued on reinvestment of distributions ................. 51,124 12,801 39,840 15,304 Redeemed ......................... (1,408,058) (239,329) (241,837) (176,864) ---------- -------- ---------- -------- Net increase (decrease) .......... 4,460,795 683,115 676,561 (76,279) ========== ======== ========== ========
6. FEDERAL TAX INFORMATION. Distributions to shareholders from net investment income and realized gains are determined in accordance with Federal income tax regulations, which may differ from net investment income and realized gains recognized for financial reporting purposes. Additionally, net short-term realized gains are treated as "ordinary income" for tax purposes. Accordingly, the character of distributions and composition of net assets for Federal tax purposes may differ from those reflected in the accompanying financial statements. To the extent these differences are permanent, such amounts are reclassified within the capital accounts based on the tax treatment; temporary differences due to timing of recognition of income or gain do not require such reclassification. 26 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED The tax character of distributions paid for the six-month period ended December 31, 2009 and the year ended June 30, 2009, respectively, were as follows:
AGGRESSIVE CONSERVATIVE ASSET ASSET ALLOCATION ALLOCATION FUND FUND ---------- ------------ SIX-MONTH PERIOD ENDED DECEMBER 31, 2009 Ordinary income ............ $ 505,286 $768,058 Long-term capital gains .... -- -- ---------- -------- Total distributions ..... $ 505,286 $768,058 ========== ======== YEAR ENDED JUNE 30, 2009 Ordinary income ............ $1,009,820 $399,246 Long-term capital gains .... 3,763,588 167,525 ---------- -------- Total distributions ..... $4,773,408 $566,771 ========== ========
The components of accumulated earnings (deficit) on a tax basis are determined at fiscal year-end. Accordingly, tax balances have not been determined as of December 31, 2009. 7. CONTRACTUAL OBLIGATIONS. The Funds enter into contracts in the normal course of business that contain a variety of indemnifications. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts. Management has reviewed the Funds' existing contracts and expects the risk of loss to be remote. 8. MERGERS. On August 21, 2009, the Conservative Asset Allocation Fund acquired all of the assets and liabilities of the Moderate Asset Allocation Fund (the "Moderate Fund") in exchange for shares of the Conservative Asset Allocation Fund, pursuant to an agreement and plan of reorganization approved by the Board of Trustees and approved by the shareholders of the Moderate Fund. The Conservative Asset Allocation Fund's acquisition of the Moderate Fund was accomplished through the tax-free exchange of the outstanding shares of the Moderate Fund, 1,794,412 Institutional Shares and 953,809 A Shares, on August 21, 2009 (valued at $15,358,229 and $8,139,354, respectively) for 1,628,014 Institutional Shares and 864,369 A Shares of the Moderate Fund. The net assets and net unrealized depreciation of the Moderate Fund as of the close of business on August 21, 2009 were $23,497,583 and $(361,399), respectively. Prior to the acquisition on August 21, 2009, the Conservative Asset Allocation Fund had net assets of $17,650,098. After the acquisition the Conservative Asset Allocation Fund had net assets of $41,147,681. 9. RECENT ACCOUNTING PRONOUNCEMENTS. In January 2010, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2010-06, "Improving Disclosures about Fair Value Measurements." ASU 2010-06 amends FASB Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures, to require additional disclosures regarding fair value measurements. Certain disclosures required by ASU No. 2010-06 are effective for interim and annual reporting periods beginning after December 15, 2009, and other required disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Management is currently evaluating the impact ASU No. 2010-06 will have on its financial statement disclosures. 27 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS NOTES TO FINANCIAL STATEMENTS (UNAUDITED) -- CONTINUED 10. SUBSEQUENT EVENT EVALUATIONS. Management has evaluated the impact of all subsequent events on the Funds through February 26, 2010, the date the financial statements were available for issuance, and has determined that the following subsequent events require disclosure in the financial statements. On February 2, 2010, The PNC Financial Services Group, Inc. ("PNC") entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") with The Bank of New York Mellon Corporation ("BNY Mellon"). Upon the terms and subject to the conditions set forth in the Stock Purchase Agreement, which has been approved by the board of directors of each company, PNC will sell to BNY Mellon (the "Stock Sale") 100% of the issued and outstanding shares of PNC Global Investment Servicing Inc., an indirect, wholly-owned subsidiary of PNC. The Stock Sale includes PNC Global Investment Servicing (U.S.) Inc., and PFPC Trust Company and is expected to close in the third quarter of 2010. 28 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS EVALUATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS At a meeting held on August 20, 2009, the Board of Trustees, including a majority of those trustees who are not "interested persons" as such term is defined in the 1940 Act ("Independent Trustees"), unanimously approved the continuation for an additional one-year period of the investment advisory agreement between WT Mutual Fund (the "Trust"), on behalf of the Wilmington Aggressive Asset Allocation Fund and Wilmington Conservative Asset Allocation Fund (each a "Fund"), and RSMC (the "Advisory Agreement"). The Trustees also unanimously approved the continuation of the sub-advisory agreement among the Trust on behalf of each Fund, RSMC and Wilmington Trust Investment Management, LLC ("WTIM") (the "WTIM Agreement" and with the RSMC Agreement, the "Agreements"), pursuant to which WTIM provides certain investment services, information, advice, assistance and facilities, research and statistical investment services. WTIM is a wholly owned subsidiary of Wilmington Trust Corporation and is under common control with RSMC. Employees of WTIM are also employees of RSMC. Prior to voting, the Independent Trustees reviewed the Agreements with RSMC, WTIM and legal counsel and received advice from such counsel regarding the legal standards to be followed in their consideration of the Agreements. The Independent Trustees also reviewed the Agreements in executive session with counsel at which time no representatives of RSMC or WTIM were present. Before meeting to determine whether to approve the continuation of the Agreements, the Board had the opportunity to review written materials provided by RSMC and WTIM. The materials generally included information regarding (i) services performed for the Trust and the Funds, (ii) the size and qualifications of RSMC's and WTIM's portfolio management staff, (iii) any potential or actual material conflicts of interest which may arise in connection with RSMC's and WTIM's management of a Fund, (iv) investment performance, (v) brokerage selection procedures, (vi) the procedures for allocating investment opportunities between a Fund and other clients, (vii) results of any independent audit or regulatory examination, including any recommendations or deficiencies noted, (viii) any litigation, investigation or administrative proceeding which may have a material impact on RSMC's or WTIM's ability to service the Funds, (ix) compliance with a Fund's investment objective, policies and practices (including its code of ethics), federal securities laws and other regulatory requirements, and (x) to the extent applicable, its proxy voting policies. RSMC and WTIM provided information regarding the advisory fees received and an analysis of these fees in relation to the delivery of services to each of the Funds, the costs of providing such services, the profitability of the firm in general and as a result of the fees received from the Funds and any other ancillary benefit resulting from RSMC's or WTIM's relationship with the Trust. The Board also received a memorandum from counsel to the Trust which outlined the duties of trustees when considering approval of an investment advisory agreement and related legal standards. In addition, the Board received a report prepared by two of the Trustees that considered, among other items,: (i) investment performance, (ii) compliance and regulatory issues; (iii) operations; (iv) asset growth; (v) profitability; and (vi) expense management. The Board considered and weighed the above information based upon its accumulated experience in governing the Trust and working with RSMC on matters relating to the Trust. During its deliberations on whether to approve continuation of the Agreements, the Board considered many factors. The Board considered the nature, extent and quality of the services provided by RSMC and WTIM. The Trustees considered the services provided to each Fund by RSMC and WTIM as compared to services provided by other advisers which manage mutual funds with investment objectives, strategies and policies similar to those of the Funds. The Trustees concluded that the nature, extent and quality of the services provided by RSMC and WTIM to each Fund were appropriate and consistent with the terms of the Agreements, that the quality of those services was consistent with industry norms and that each Fund is likely 29 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS EVALUATION AND APPROVAL OF INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS -- CONTINUED to benefit from the continued provision of those services. They also concluded that RSMC and WTIM have sufficient personnel, with the appropriate education and experience, to serve each Fund effectively and have demonstrated their continuing ability to attract and retain qualified personnel. The Board considered the investment performance of each Fund, RSMC and WTIM. The Board reviewed and considered comparative performance data and each Fund's performance relative to other mutual funds with similar investment objectives, strategies and policies, its respective benchmark index and its Lipper peer group rankings. The Board also noted that it reviews and evaluates each Fund's investment performance on an on-going basis throughout the year. The Trustees considered the consistency of performance results and the short-term and long-term performance of each Fund. They concluded that the performance of each Fund, RSMC and WTIM is within an acceptable range of performance relative to other mutual funds with similar investment objectives, strategies and policies. The Board considered the costs of the services provided by RSMC and WTIM, the compensation and benefits received by RSMC and WTIM in providing services to the Funds, as well as RSMC's and WTIM's profitability. In addition, the Board considered any direct or indirect revenues received by affiliates of RSMC and WTIM. The Board recognized that RSMC's profitability is an important factor in providing service to the Funds. The Board was satisfied that RSMC's profits are sufficient to continue as a viable concern generally and as investment adviser of each Fund specifically. The Board concluded that RSMC's and WTIM's fees and profits derived from its relationship with the Trust in light of each Fund's expenses, are reasonable in relation to the nature and quality of the services provided, taking into account the fees charged by other advisers for managing comparable mutual funds with similar strategies. The Trustees also concluded that the overall expense ratio of each Fund is reasonable, taking into account the size of the Fund, the quality of services provided by RSMC and WTIM, the investment performance of the Fund and the expense limitations agreed to by RSMC. The Trustees also considered the extent to which economies of scale would be realized relative to fee levels as each Fund grows, and whether the advisory fee levels reflect these economies of scale for the benefit of shareholders. The Board determined that economies of scale should be achieved at higher asset levels for each of the Funds for the benefit of shareholders due to certain break-points in the advisory fees. The Board recognized that the economies of scale achieved will be primarily due to the ability of the Trust and each Fund to spread its fixed costs across a larger asset base and not through negotiated breakpoints in the advisory fees. The Trustees considered whether any events have occurred that would constitute a reason for the Board not to approve continuation of the Agreements and concluded there were not. After consideration of all the factors, and taking into consideration the information presented during previous meetings of the Board, the Board determined that it would be in the best interests of each Fund and its shareholders to approve the continuation of the Agreements for an additional one-year period. In arriving at its decision, the Board did not identify any single matter as controlling, but made its determination in light of all the facts and circumstances. 30 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS TRUSTEES AND OFFICERS (UNAUDITED) WT Mutual Fund (the "Trust") is governed by a Board of Trustees (the "Trustees"). The primary responsibility of the Trustees is to represent the interest of the Trust's shareholders and to provide oversight management of the Trust. The following table presents certain information regarding the Trustees and Officers of the Trust. Each person listed under "Interested Trustee" below is an "interested person" of the Trust's investment advisers, within the meaning of the Investment Company Act of 1940, as amended (the "1940 Act"). Each person who is not an "interested person" of the Trust's investment advisers or the Trust within the meaning of the 1940 Act is referred to as an "Independent Trustee" and is listed under such heading below. Unless specified otherwise, the address of each Trustee and Officer as it relates to the Trust is 1100 N. Market Street, Wilmington, DE 19890. The Statement of Additional Information for the Funds contains additional information about the Trustees and is available, without charge, upon request, by calling (800) 336-9970 or by visiting the Funds' website at www.wilmingtonfunds.com. INTERESTED TRUSTEES
NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ---------------------- ------------------------------ -------------------------------------- TED T. CECALA(2) Trustee Director, Chairman of the Board, and Date of Birth: 1/49 Chief Executive Officer of Wilmington Shall serve at the pleasure of Trust Corporation and Wilmington Trust 12 Funds the Board and until successor Company since 1996; Member of the is elected and qualified. Board of Managers of Cramer Rosenthal Trustee since August 2007. McGlynn, LLC and Roxbury Capital Management, LLC (registered investment advisers). Wilmington Trust Corporation; Wilmington Trust Company. ROBERT J. CHRISTIAN(3) Trustee Retired since February 2006; Executive Date of Birth: 2/49 Vice President of Wilmington Trust Shall serve until death, Company from February 1996 to 12 Funds resignation or removal. February 2006; President of Rodney Trustee since October 1998, Square Management Corporation President and Chairman of ("RSMC") from 1996 to 2005; Vice the Board from October 1998 President of RSMC 2005 to 2006. to January 2006. FundVantage Trust (13 portfolios); Optimum Fund Trust (6 portfolios) (registered investment companies).
(1) The "Fund Complex" currently consists of the Trust (12 funds) and CRM Mutual Fund Trust (8 funds). (2) Mr. Cecala is an "Interested Trustee" by reason of his position with Wilmington Trust Corporation and Wilmington Trust Company, each an affiliate of RSMC, an investment adviser to the Trust. (3) Mr. Christian is an "Interested Trustee" by reason of his previous employment with RSMC, the investment adviser to the Trust. 31 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS TRUSTEES AND OFFICERS (UNAUDITED) -- CONTINUED INDEPENDENT TRUSTEES
NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ---------------------- ------------------------------ ---------------------------------------- ROBERT ARNOLD Trustee Founder and co-manager, R. H. Arnold & Date of Birth: 3/44 Co., Inc. (financial consulting) since Shall serve until death, 1989. 12 Funds resignation or removal. First Potomac Realty Trust (real estate Trustee since May 1997. investment trust). DR. ERIC BRUCKER Trustee Professor of Economics, Widener Date of Birth: 12/41 University since July 2004; formerly, Shall serve until death, Dean, School of Business Administration 12 Funds resignation or removal. of Widener University from 2001 to 2004; Trustee since October 1999. Dean, College of Business, Public Policy and Health at the University of Maine from September 1998 to June 2001. None NICHOLAS GIORDANO Trustee and Chairman of Consultant, financial services Date of Birth: 3/43 the Board organizations from 1997 to present; Interim President, LaSalle University 12 Funds Shall serve until death, from 1998 to 1999; President and Chief resignation or removal. Executive Officer, Philadelphia Stock Trustee since October 1998. Exchange from 1981 to 1997. Kalmar Pooled Investment Trust; The RBB Fund, Inc. (19 portfolios) (registered investment companies); Independence Blue Cross; IntriCon Corporation (industrial furnaces and ovens). LOUIS KLEIN, JR. Trustee Self-employed financial consultant Date of Birth: 5/35 since 1991. Shall serve until death, 20 Funds resignation or removal. CRM Mutual Fund Trust (8 portfolios) Trustee since October 1999. (registered investment companies); WHX Corporation (industrial manufacturer).
32 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS TRUSTEES AND OFFICERS (UNAUDITED) -- CONTINUED INDEPENDENT TRUSTEES (CONTINUED)
NAME AND POSITION(S) HELD DATE OF BIRTH, WITH TRUST, PRINCIPAL OCCUPATION(S) NUMBER OF FUNDS IN TERM OF OFFICE AND DURING PAST FIVE YEARS, FUND COMPLEX LENGTH OF TIME OTHER DIRECTORSHIPS OVERSEEN BY TRUSTEE(1) SERVED HELD BY TRUSTEE - ---------------------- ------------------------------ ---------------------------------------- THOMAS LEONARD Trustee Retired since 2008; Former Partner with Date of Birth: 2/49 PricewaterhouseCoopers (public Shall serve until death, accounting) from May 1970 to June 2008. 12 Funds resignation or removal. Trustee since July 2008. Alpha One Capital Partners, LLC (2 portfolios) (unregistered investment companies).
33 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS TRUSTEES AND OFFICERS (UNAUDITED) -- CONTINUED EXECUTIVE OFFICERS
POSITION(S) HELD WITH TRUST, PRINCIPAL OCCUPATION(S) TERM OF OFFICE AND DURING PAST FIVE YEARS, NAME, ADDRESS AND LENGTH OF TIME OTHER DIRECTORSHIPS DATE OF BIRTH SERVED HELD - ------------------------ ------------------------------ ------------------------------------------ JOHN J. KELLEY President & Chief Executive President of Rodney Square Management 1100 North Market Street Officer Corporation ("RSMC") since 2008; Vice Wilmington, DE 19890 President of Wilmington Trust Investment Date of Birth: 9/59 Shall serve at the pleasure of Management, LLC ("WTIM") since the Board and until successor 2005; Vice President of PNC Global is elected and qualified. Investment Servicing (U.S.), Inc. (former- Officer since September 2005. ly PFPC Inc.) from January 2005 to July 2005; Vice President of Administration, 1838 Investment Advisors, LP from 1999 to 2005; Chief Compliance Officer, 1838 Investment Advisors, LP from 2004 to 2005. N/A CLAYTON M. ALBRIGHT Vice President Managing Director Fixed Income 1100 North Market Street Management, Wilmington Trust since Wilmington, DE 19890 Shall serve at the pleasure of 2007; Director Fixed Income Research Date of Birth: 9/53 the Board and until successor and Portfolio Manager, Wilmington Trust is elected and qualified. from 1996 to 2007; Vice President, Officer since October 1998. RSMC since 2001; Vice President of WTIM since 2006; Vice President, Wilmington Trust Company since 1997. N/A JOSEPH M. FAHEY, JR. Vice President Investment Adviser, WTIM since 2003; 1100 North Market Street Vice President, RSMC since 1992. Wilmington, DE 19890 Shall serve at the pleasure of Date of Birth: 1/57 the Board and until successor N/A is elected and qualified. Officer since November 1999. JOHN C. MCDONNELL Vice President, Chief Director of Mutual Fund Administration, 1100 North Market Street Financial Officer & Treasurer WTIM, since October 2005; Audit and Wilmington, DE 19890 Assurance - Senior, Deloitte (public Date of Birth: 4/66 Shall serve at the pleasure of accounting) from September 2004 to the Board and until successor October 2005; Mutual Fund is elected and qualified. Administration, 1838 Investment Officer since November 2005. Advisors, LP from March 1999 to September 2004. N/A
34 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS TRUSTEES AND OFFICERS (UNAUDITED) -- CONTINUED EXECUTIVE OFFICERS (CONTINUED)
POSITION(S) HELD WITH TRUST, PRINCIPAL OCCUPATION(S) TERM OF OFFICE AND DURING PAST FIVE YEARS, NAME, ADDRESS AND LENGTH OF TIME OTHER DIRECTORSHIPS DATE OF BIRTH SERVED HELD - ------------------------ ------------------------------ ------------------------------------------ ANNA M. BENCROWSKY Vice President, Chief Chief Compliance Officer, WTIM since 1100 North Market Street Compliance Officer & Anti- 2007; Vice President, WTIM since 2004; Wilmington, DE 19890 Money Laundering Officer Vice President and Chief Compliance Date of Birth: 5/51 Officer, RSMC since 2004; Vice Shall serve at the pleasure of President and Chief Compliance Officer, the Board and until successor 1838 Investment Advisors, LP from is elected and qualified; 1999 to 2004. Officer since September 2004. N/A EDWARD W. DIFFIN, JR. Vice President & Secretary Director of Mutual Fund Regulatory 1100 North Market Street Administration of WTIM since November Wilmington, DE 19890 Shall serve at the pleasure of 2006; Coleman Counsel Per Diem from Date of Birth: 1/52 the Board and until successor November 2005 to November 2006; Vice is elected and qualified; President and Senior Counsel of Merrill Officer since February 2007. Lynch & Co., Inc. from 1994 to 2005. N/A
35 WILMINGTON FUNDS -- ASSET ALLOCATION FUNDS VOTING PROXIES ON FUND PORTFOLIO SECURITIES A description of the policies and procedures that the Trust used to determine how to vote proxies relating to securities held in the Trust's portfolios is available, without charge, by calling the Fund at (800) 336-9970 or on the SEC's website at http://www.sec.gov. Information regarding how the investment adviser voted proxies for the most recent twelve-month period ended June 30, 2009 is available, without charge, by calling the Fund at (800) 336-9970 or on the SEC's website listed above. 36 TRUSTEES Nicholas A. Giordano Chairman of the Board Robert H. Arnold Dr. Eric Brucker Ted T. Cecala Robert J. Christian Louis Klein Jr. Thomas Leonard OFFICERS John J. Kelley President & Chief Executive Officer John C. McDonnell Vice President, Chief Financial Officer & Treasurer Edward W. Diffin Jr. Vice President & Secretary Clayton M. Albright Vice President Joseph M. Fahey Jr. Vice President Anna M. Bencrowsky Vice President, Chief Compliance Officer & Anti-Money Laundering Officer CUSTODIAN Wilmington Trust Company 1100 North Market Street, Wilmington, DE 19890 INVESTMENT ADVISER AND ADMINISTRATOR Rodney Square Management Corporation 1100 North Market Street, Wilmington, DE 19890 SUB-ADMINISTRATOR, TRANSFER AGENT, AND ACCOUNTING AGENT PNC Global Investment Servicing (U.S.), Inc. 301 Bellevue Parkway, Wilmington, DE 19809 THIS SEMI-ANNUAL REPORT IS AUTHORIZED FOR DISTRIBUTION ONLY TO SHAREHOLDERS AND TO OTHERS WHO HAVE RECEIVED A CURRENT PROSPECTUS OF THE WILMINGTON ASSET ALLOCATION FUNDS - INSTITUTIONAL AND A SHARES. WILMINGTON | FUNDS | AAF_Semi_12/09 ITEM 2. CODE OF ETHICS. Not applicable. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable. ITEM 6. INVESTMENTS. (a) Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period as set forth in section 210.12-12 of Regulation S-X (17 CFR 210.12-12) is included as part of the report to shareholders filed under Item 1 of this Form. (b) Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant's board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item. ITEM 11. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant's second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. (a)(1) Not applicable. (a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto. (a)(3) Not applicable. (b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (registrant) WT Mutual Fund -------------------------------------------------------------------- By (Signature and Title)* /s/ John J. Kelley ------------------------------------------------------- John J. Kelley, President & Chief Executive Officer (principal executive officer) Date March 5, 2010 ---------------------------------------------------------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ John J. Kelley ------------------------------------------------------- John J. Kelley, President & Chief Executive Officer (principal executive officer) Date March 5, 2010 ---------------------------------------------------------------------------- By (Signature and Title)* /s/ John C. McDonnell ------------------------------------------------------- John C. McDonnell, Vice President & Chief Financial Officer (principal financial officer) Date March 5, 2010 ---------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 b56002_302cert.txt 302 CERTIFICATION EXHIBIT 12(A)(2) CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT CERTIFICATIONS I, John J. Kelley, certify that: 1. I have reviewed this report on Form N-CSR of WT Mutual Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 5, 2010 /s/ John J. Kelley -------------------- --------------------------------------------------- John J. Kelley, President & Chief Executive Officer (principal executive officer) EXHIBIT 12(A)(2) CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT CERTIFICATIONS I, John C. McDonnell, certify that: 1. I have reviewed this report on Form N-CSR of WT Mutual Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: March 5, 2010 /s/ John C. McDonnell -------------------- --------------------------------------------------- John C. McDonnell, Vice President & Chief Financial Officer (principal financial officer) EX-99.906CERT 3 b56002_906cert.txt 906 CERTIFICATION EXHIBIT 12(B) CERTIFICATION PURSUANT TO RULE 30A-2(B) UNDER THE 1940 ACT AND SECTION 906 OF THE SARBANES-OXLEY ACT I, John J. Kelley, President & Chief Executive Officer of WT Mutual Fund (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: March 5, 2010 /s/ John J. Kelley -------------------- --------------------------------------------------- John J. Kelley, President & Chief Executive Officer (principal executive officer) I, John C. McDonnell, Vice President & Chief Financial Officer of WT Mutual Fund (the "Registrant"), certify that: 1. The Form N-CSR of the Registrant (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. Date: March 5, 2010 /s/ John C. McDonnell -------------------- --------------------------------------------------- John C. McDonnell, Vice President & Chief Financial Officer (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----