-----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, Rbdmh69a7zvwj9UqgmGnAqPtY+01f/LuL0jnUrzCvIUc6Q+up4qW1OKvLuCOuIvk vqjJ0K9uxy39QTXqgh74HA== 0001111830-05-000225.txt : 20050701 0001111830-05-000225.hdr.sgml : 20050701 20050701142853 ACCESSION NUMBER: 0001111830-05-000225 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050430 FILED AS OF DATE: 20050701 DATE AS OF CHANGE: 20050701 EFFECTIVENESS DATE: 20050701 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW CENTURY PORTFOLIOS CENTRAL INDEX KEY: 0000838802 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05646 FILM NUMBER: 05932523 BUSINESS ADDRESS: STREET 1: 40 WILLIAM ST STREET 2: SUITE 100 CITY: WELLESLEY STATE: MA ZIP: 02481-3902 BUSINESS PHONE: 8886390102 MAIL ADDRESS: STREET 1: 40 WILLIAM ST STREET 2: SUITE 100 CITY: WELLESLEY STATE: MA ZIP: 02481 FORMER COMPANY: FORMER CONFORMED NAME: WESTON PORTFOLIOS DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: WESTON PORTFOLIOS INC DATE OF NAME CHANGE: 19920621 N-CSRS 1 ncsrs-0405.txt NEW CENTURY PORTFOLIOS - N-CSRS -------------------------- OMB APPROVAL -------------------------- OMB Number: 3235-0570 Expires: October 31, 2006 Estimated average burden hours per response: 19.3 -------------------------- 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 811-05646 ------------------------------------ New Century Portfolios - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 40 William Street, Suite 100 Wellesley, Massachusetts 02481 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Nicole M. Tremblay, Esq. Weston Financial Group, Inc. 40 William Street Wellesley, Massachusetts 02481 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (781) 235-7055 --------------------------- Date of fiscal year end: October 31, 2005 ----------------------------------- Date of reporting period: April 30, 2005 ----------------------------------- Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. REPORTS TO STOCKHOLDERS. ================================================================================ [GRAPHIC OMITTED] NEW CENTURY PORTFOLIOS NEW CENTURY CAPITAL NEW CENTURY BALANCED NEW CENTURY AGGRESSIVE NEW CENTURY INTERNATIONAL NEW CENTURY ALTERNATIVE STRATEGIES SEMI-ANNUAL REPORT SIX MONTHS ENDED APRIL 30, 2005 (UNAUDITED)
40 William Street, Suite 100, Wellesley MA 02481 781-239-0445 888-639-0102 Fax 781-237-1635
================================================================================ CONTENTS - -------------------------------------------------------------------------------- PRESIDENT'S LETTER 1 PORTFOLIO INFORMATION 2-6 New Century Portfolios Statements of Assets and Liabilities 7 Statements of Operations 8 Statements of Changes in Net Assets 9-11 Financial Highlights 12-16 Portfolios of Investments 17-24 Notes to Financial Statements 25-31 About Your Portfolio's Expenses 32-34 LETTER TO SHAREHOLDERS ================================================================================ Dear Fellow Shareholders: I am pleased to present our Semi-Annual Report for the six-month period ended April 30, 2005. This Report presents important financial information for each of the New Century Portfolios. I also invite you to visit our website at www.newcenturyportfolios.com for additional information. The Federal Reserve's policy of increasing short-term interest rates, the specter of inflation, a frothy real estate market, lofty consumer debt levels, the weak U.S. dollar and volatile energy prices generated an anxious investment environment. Nonetheless, during the six-month period ended April 30, 2005, the S&P 500 gained approximately 3.3%, the Russell 3000 Index gained 3.7%, the MSCI EAFE Index gained 8.7% and the Lehman Brothers Intermediate Government/Credit Index gained 0.05%. During the period, the New Century Capital Portfolio increased its exposure to the growth and the international sectors, while reducing its position in the aggressive sector. During the period, the Capital Portfolio gained 2.8%. The New Century Balanced Portfolio increased its allocation to the growth and income sector and the international sector, and reduced its allocation in the growth sector. Its overall allocation between equities and fixed income remained constant. During the period, the New Century Balanced Portfolio gained 2.7%, as compared to a blended index of 60% S&P 500 Composite Index and 40% Lehman Brothers Intermediate Government/Credit Index which gained 2.3%. The energy, natural resources, and emerging markets sectors continued to post strong results during the period. Positions in these sectors helped the New Century Aggressive Portfolio gain of 4.9% during the period. The New Century International Portfolio increased its positions in the Asia/Pacific the emerging markets sectors, while reducing positions in the diversified sector. During the period, the New Century International Portfolio gained 10.1%. The international equity markets, as measured by the MSCI EAFE Index, increased 8.7%. The New Century Alternative Strategies Portfolio increased its allocation in the natural resources, asset allocation and long/short equity categories and decreased its allocation to the real estate investment trusts and the convertible arbitrage category. The New Century Alternative Strategies Portfolio maintained diversified positions in eleven investment strategies. Further, the New Century Alternative Strategies Portfolio gained 3.1% during the period, as compared to the Lehman Brothers Intermediate Government/Credit Index, which gained 0.05% and the S&P 500 Composite Index gained 3.3%. While future performance is always unpredictable, we are confident that New Century's investment philosophy - diversification, risk assessment and long-term focus - will maximize risk-adjusted returns. New Century is committed to its shareholders and appreciates your selecting New Century as part of your long-term investment strategy. Sincerely, /S/Wayne M. Grzecki Wayne M. Grzecki President 1 NEW CENTURY CAPITAL PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2005 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Growth and Income Funds - 35.3% Growth Funds - 33.3% [GRAPHIC OMITTED] Small Company Funds - 17.5% Foreign Stock Funds - 13.3% Cash Equivalents - 0.6% TOP TEN HOLDINGS ================================================================================ SECURITY DESCRIPTION % OF NET ASSETS ---------------------------------------- --------------- Hotchkis & Wiley Large Cap Value - Class A 8.1% iShares Dow Jones Select Dividend Index 7.9% American Growth Fund of America - Class A 6.6% Calamos Growth - Class A 6.4% William Blair Small Cap Growth - Class I 6.3% Marsico 21st Century 5.9% Fidelity Capital Appreciation 5.4% Royce Opportunity - Investor Class 4.7% iShares S&P MidCap 400/BARRA Value Index 4.3% Goldman Sachs Growth Opportunities - Class A 4.1% See accompanying notes to financial statements. 2 NEW CENTURY BALANCED PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2005 (UNAUDITED) ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Growth and Income Funds - 33.0% High Yield Bond Funds - 12.4% Growth Funds - 11.8% Small Company Funds - 10.3% Foreign Stock Funds - 8.9% [GRAPHIC OMITTED] Convertible Security Funds - 5.1% Corporate Bond Funds - 5.0% Government Bond Funds - 4.3% Worldwide Bond Funds - 3.5% High Quality Bond Funds - 3.1% Emerging Markets Funds - 0.7% Cash Equivalents - 1.9% TOP TEN HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS ---------------------------------------- --------------- Hotchkis & Wiley Large Cap Value - Class A 7.9% iShares Dow Jones Select Dividend Index 7.3% iShares S&P 500 Index 7.2% MainStay High Yield Corporate Bond - Class A 6.2% Fidelity Advisor High Income Advantage - Class I 6.2% Loomis Sayles Bond - Institutional Class 5.0% Dodge & Cox Stock 4.6% American Century Target Maturities Trust Series 2015 - Investor Class 4.3% iShares MSCI EAFE Index 4.1% American FundsAMCAP - Class A 3.8% See accompanying notes to financial statements. 3 NEW CENTURY AGGRESSIVE PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2005 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Sector Funds - 64.6% Mid-Cap Funds - 20.6% [GRAPHIC OMITTED] Small-cap Funds - 8.8% Large-Cap Funds - 5.4% Cash Equivalents - 0.6% TOP TEN HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS ---------------------------------------- --------------- iShares Dow Jones U.S. Energy Sector Index 17.9% iShares Goldman Sachs Natural Resources Index 11.2% iShares MSCI Emerging Markets Index 11.0% Technology Select Sector SPDR 9.6% S&P MidCap 400 Depositary Receipts 8.8% Calamos Growth - Class A 8.3% Fidelity Capital Appreciation 5.4% iShares Goldman Sachs Networking Index 5.1% Buffalo Small Cap 4.9% Fidelity Select Medical Delivery 4.4% See accompanying notes to financial statements. 4 NEW CENTURY INTERNATIONAL PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2005 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Europe Funds - 28.8% Diversified Funds - 23.8% [GRAPHIC OMITTED] Asia/Pacific Funds - 21.2% Americas Funds - 14.5% Emerging Markets Funds - 10.6% Cash Equivalents - 1.1% TOP TEN HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS ---------------------------------------- --------------- iShares MSCI Austria Index 7.3% Dodge & Cox International Stock 6.9% Ivy European Opportunities - Class A 6.5% Tocqueville International Value (The) 6.1% iShares S&P Latin American 40 Index 5.9% T. Rowe Price Emerging Europe & Mediterranean 5.2% Lazard International Small Cap - Investor Shares 5.1% iShares MSCI Australia Index 4.9% iShares MSCI Germany Index 4.9% iShares MSCI EAFE Index 4.7% See accompanying notes to financial statements. 5 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2005 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Merger Arbitrage Funds - 15.7% Long/Short Equity Funds - 13.0% Global Macro Funds - 12.7% Asset Allocation Funds - 12.6% Natural Resources Funds - 9.3% High Yield Funds - 7.7% [GRAPHIC OMITTED] Real Estate Funds - 7.1% Deep Value/Distressed Securities Funds - 6.0% Options/Hedged Funds - 5.4% Convertible Arbitrage Funds - 4.9% Market Neutral Funds - 3.2% Common Stocks - 0.2% Cash Equivalents - 2.2% TOP TEN HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS ---------------------------------------- --------------- First Eagle Global - Class A 7.2% Merger Fund (The) 5.8% Gateway 5.4% Hussman Strategic Growth 5.0% Enterprise Mergers and Acquisitions - Class A 5.0% Calamos Market Neutral - A Shares 5.0% PIMCO Commodity Real Return Strategy - Class A 3.9% Arbitrage Fund (The) - Class R 3.7% Third Avenue Real Estate Value 3.3% FPA Crescent - Class I 3.2% See accompanying notes to financial statements. 6
NEW CENTURY PORTFOLIOS STATEMENTS OF ASSETS AND LIABILITIES APRIL 30, 2005 (UNAUDITED) ================================================================================================================================= NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - --------------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in securities: At acquisition cost ..................... $ 90,158,861 $ 65,882,897 $ 4,516,375 $ 28,487,021 $ 60,031,282 ============= ============= ============= ============= ============= At value (Note 1A) ...................... $ 103,354,198 $ 73,551,274 $ 5,299,664 $ 34,503,889 $ 64,885,863 Dividends receivable ...................... 1,159 4,509 52 1,810 2,538 Receivable for capital shares sold ........ 6,563 950 -- 2,500 51,827 Other assets .............................. 11,413 8,383 594 3,320 7,000 ------------- ------------- ------------- ------------- ------------- TOTAL ASSETS ............................ 103,373,333 73,565,116 5,300,310 34,511,519 64,947,228 ------------- ------------- ------------- ------------- ------------- LIABILITIES Payable to Advisor (Note 2) ............... 123,885 91,418 806 39,605 41,560 Payable for investment securities purchased -- -- -- -- 300,000 Payable for capital shares redeemed ....... 14,520 3,000 -- -- 1,000 Other accrued expenses and liabilities .... 4,600 3,242 5,124 9,691 3,632 ------------- ------------- ------------- ------------- ------------- TOTAL LIABILITIES ....................... 143,005 97,660 5,930 49,296 346,192 ------------- ------------- ------------- ------------- ------------- NET ASSETS .................................. $ 103,230,328 $ 73,467,456 $ 5,294,380 $ 34,462,223 $ 64,601,036 ============= ============= ============= ============= ============= Net assets consist of: Paid-in capital ........................... $ 99,904,907 $ 69,545,145 $ 5,908,800 $ 28,223,811 $ 59,420,421 Accumulated net investment income ......... 74,083 68,337 251 71,414 133,261 Accumulated net realized gains (losses) on investments .......................... (9,943,999) (3,814,403) (1,397,960) 150,130 192,773 Unrealized appreciation of investments .... 13,195,337 7,668,377 783,289 6,016,868 4,854,581 ------------- ------------- ------------- ------------- ------------- Net assets .................................. $ 103,230,328 $ 73,467,456 $ 5,294,380 $ 34,462,223 $ 64,601,036 ============= ============= ============= ============= ============= Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) ............................. 7,501,445 5,889,363 690,975 3,192,850 5,693,339 ============= ============= ============= ============= ============= Net asset value, offering price and redemption price per share (a) ............ $ 13.76 $ 12.47 $ 7.66 $ 10.79 $ 11.35 ============= ============= ============= ============= ============= (a) Redemption price may differ from the net asset value per share depending upon the length of time held (Note 1B). See accompanying notes to financial statements. 7 NEW CENTURY PORTFOLIOS STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2005 (UNAUDITED) ================================================================================================================================= NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - --------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Dividends ................................. $ 558,811 $ 1,143,197 $ 35,186 $ 266,277 $ 892,019 ------------- ------------- ------------- ------------- ------------- EXPENSES Investment advisory fees (Note 2) ......... 526,356 373,536 27,753 151,197 220,050 Distribution costs (Note 3) ............... 92,500 50,734 6,474 32,317 12,967 Accounting fees ........................... 20,373 18,752 15,280 16,532 17,941 Legal and audit fees ...................... 30,102 21,092 1,557 9,299 15,866 Administration fees (Note 2) .............. 24,067 17,759 4,209 9,055 14,630 Transfer agent fees ....................... 10,500 10,500 10,500 10,500 10,500 Custody fees .............................. 10,492 8,412 1,661 4,611 7,796 Trustees' fees and expenses (Note 2) ...... 6,245 4,375 314 1,922 3,645 Postage and supplies ...................... 3,903 3,375 2,101 2,290 2,932 Insurance expense ......................... 3,053 2,177 158 646 1,365 Other expenses ............................ 1,580 15,294 2,656 4,970 5,196 ------------- ------------- ------------- ------------- ------------- Total expenses .......................... 729,171 526,006 72,663 243,339 312,888 Less fees waived and/or expenses reimbursed by the Advisor (Note 2) ...... -- -- (31,033) (16,544) -- ------------- ------------- ------------- ------------- ------------- Net expenses ............................ 729,171 526,006 41,630 226,795 312,888 ------------- ------------- ------------- ------------- ------------- NET INVESTMENT INCOME (LOSS) ................ (170,360) 617,191 (6,444) 39,482 579,131 REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS Net realized gains on investments .......... 2,228,969 1,163,258 72,029 -- 214,041 Capital gain distributions from regulated investment companies ..................... 1,660,597 1,005,979 70,947 183,833 1,034,999 Net change in unrealized appreciation/ (depreciation) on investments ............ (646,998) (695,114) 134,703 2,157,817 (322,922) ------------- ------------- ------------- ------------- ------------- NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS ...................... 3,242,568 1,474,123 277,679 2,341,650 926,118 ------------- ------------- ------------- ------------- ------------- NET INCREASE IN NET ASSETS FROM OPERATIONS .................... $ 3,072,208 $ 2,091,314 $ 271,235 $ 2,381,132 $ 1,505,249 ============= ============= ============= ============= =============
See accompanying notes to financial statements. 8
NEW CENTURY PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS ======================================================================================================================= NEW CENTURY NEW CENTURY CAPITAL PORTFOLIO BALANCED PORTFOLIO ------------------------------------------------------------------ SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED APRIL 30, 2005 OCTOBER 31, APRIL 30, 2005 OCTOBER 31, (UNAUDITED) 2004 (UNAUDITED) 2004 - ----------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net investment income (loss) ................... $ (170,360) $ (917,292) $ 617,191 $ 651,177 Net realized gains from security transactions ........................ 2,228,969 5,347,494 1,163,258 1,597,601 Capital gain distributions from regulated investment companies ......................... 1,660,597 388,246 1,005,979 280,790 Net change in unrealized appreciation/ (depreciation) on investments ................ (646,998) 3,016,709 (695,114) 2,916,387 ------------- ------------- ------------- ------------- Net increase in net assets from operations ....... 3,072,208 7,835,157 2,091,314 5,445,955 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (Note 1E) ........... -- -- (1,007,979) (668,754) From net realized gains on security transactions (Note 1E) ....................... -- -- -- -- ------------- ------------- ------------- ------------- Net decrease in net assets from distributions to shareholders .................. -- -- (1,007,979) (668,754) ------------- ------------- ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold ...................... 3,724,210 6,977,635 2,462,300 5,125,191 Net asset value of shares issued in reinvestment of distributions to shareholders ............. -- -- 968,312 623,494 Payments for shares redeemed ................... (6,825,836) (6,948,812) (5,373,897) (6,639,206) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets from capital share transactions ..................... (3,101,626) 28,823 (1,943,285) (890,521) ------------- ------------- ------------- ------------- TOTAL INCREASE (DECREASE) IN NET ASSETS .................................. (29,418) 7,863,980 (859,950) 3,886,680 NET ASSETS Beginning of period ............................ 103,259,746 95,395,766 74,327,406 70,440,726 ------------- ------------- ------------- ------------- End of period .................................. $ 103,230,328 $ 103,259,746 $ 73,467,456 $ 74,327,406 ============= ============= ============= ============= ACCUMULATED NET INVESTMENT INCOME ......................................... $ 74,083 $ -- $ 68,337 $ 291,199 ============= ============= ============= ============= CAPITAL SHARE ACTIVITY Sold ........................................... 261,181 532,195 192,170 423,870 Reinvested ..................................... -- -- 74,600 51,911 Redeemed ....................................... (477,953) (534,090) (419,247) (549,921) ------------- ------------- ------------- ------------- Net decrease in shares outstanding ............. (216,772) (1,895) (152,477) (74,140) Shares outstanding, beginning of period ........ 7,718,217 7,720,112 6,041,840 6,115,980 ------------- ------------- ------------- ------------- Shares outstanding, end of period .............. 7,501,445 7,718,217 5,889,363 6,041,840 ============= ============= ============= =============
See accompanying noted to financial statements. 9
NEW CENTURY PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS ===================================================================================================================== NEW CENTURY NEW CENTURY AGGRESSIVE PORTFOLIO INTERNATIONAL PORTFOLIO ---------------------------------------------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED APRIL 30, 2005 OCTOBER 31, APRIL 30, 2005 OCTOBER 31, (UNAUDITED) 2004 (UNAUDITED) 2004 - --------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net investment income (loss) ................... $ (6,444) $ (56,431) $ 39,482 $ (130,081) Net realized gains from security transactions ........................ 72,029 304,188 -- 1,136,175 Capital gain distributions from regulated investment companies ......................... 70,947 20,496 183,833 12,092 Net change in unrealized appreciation/ (depreciation) on investments ................. 134,703 (18,638) 2,157,817 1,785,093 ------------ ------------ ------------ ------------ Net increase in net assets from operations ....... 271,235 249,615 2,381,132 2,803,279 ------------ ------------ ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS From net investment income (Note 1E) ........... -- -- -- -- From net realized gains on security transactions (Note 1E) ....................... -- -- (789,174) -- ------------ ------------ ------------ ------------ Net decrease in net assets from distributions to shareholders .................. -- -- (789,174) -- ------------ ------------ ------------ ------------ FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold ...................... 239,725 530,663 7,985,477 7,138,355 Net asset value of shares issued in reinvestment of distributions to shareholders ............. -- -- 788,064 -- Payments for shares redeemed ................... (728,586) (133,786) (351,948) (781,003) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets from capital share transactions ............................. (488,861) 396,877 8,421,593 6,357,352 ------------ ------------ ------------ ------------ TOTAL INCREASE (DECREASE) IN NET ASSETS .................................. (217,626) 646,492 10,013,551 9,160,631 NET ASSETS Beginning of period ............................ 5,512,006 4,865,514 24,448,672 15,288,041 ------------ ------------ ------------ ------------ End of period .................................. $ 5,294,380 $ 5,512,006 $ 34,462,223 $ 24,448,672 ============ ============ ============ =========== ACCUMULATED NET INVESTMENT INCOME ......................................... $ 251 $ -- $ 71,414 $ -- ============ ============ ============ =========== CAPITAL SHARE ACTIVITY Sold ........................................... 30,863 73,300 725,167 747,210 Reinvested ..................................... -- -- 71,773 -- Redeemed ....................................... (95,175) (18,336) (32,206) (80,727) ------------ ------------ ------------ ------------ Net increase (decrease) in shares outstanding .. (64,312) 54,964 764,734 666,483 Shares outstanding, beginning of period ........ 755,287 700,323 2,428,116 1,761,633 ------------ ------------ ------------ ------------ Shares outstanding, end of period .............. 690,975 755,287 3,192,850 2,428,116 ============ ============ ============ ===========
See accompanying notes to financial statements. 10
NEW CENTURY PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS ===================================================================================================== NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO ------------------------------- SIX MONTHS YEAR ENDED ENDED APRIL 30, 2005 OCTOBER 31, (UNAUDITED) 2004 - ----------------------------------------------------------------------------------------------------- FROM OPERATIONS Net investment income ............................................. $ 579,131 $ 455,953 Net realized gains from security transactions ..................... 214,041 739,129 Capital gain distributions from regulated investment companies .... 1,034,999 320,147 Net change in unrealized appreciation/(depreciation) on investments (322,922) 2,023,614 ------------ ------------ Net increase in net assets from operations .......................... 1,505,249 3,538,843 ------------ ------------ DISTRIBUTIONS TO SHAREHOLDERS From net investment income (Note 1E) .............................. (1,069,317) (581,288) From net realized gains on security transactions (Note 1E) ........ (1,234,575) -- ------------ ------------ Net decrease in net assets from distributions to shareholders ....... (2,303,892) (581,288) ------------ ------------ FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold ......................................... 12,928,184 16,825,271 Net asset value of shares issued in reinvestment of distributions to shareholders ................................... 2,282,936 573,254 Payments for shares redeemed ...................................... (1,446,195) (2,455,448) ------------ ------------ Net increase in net assets from capital share transactions .......... 13,764,925 14,943,077 ------------ ------------ TOTAL INCREASE IN NET ASSETS ........................................ 12,966,282 17,900,632 NET ASSETS Beginning of period ............................................... 51,634,754 33,734,122 ------------ ------------ End of period ..................................................... $ 64,601,036 $ 51,634,754 ============ ============ ACCUMULATED NET INVESTMENT INCOME ................................... $ 133,261 $ 172,051 ============ ============ CAPITAL SHARE ACTIVITY Sold .............................................................. 1,114,874 1,509,894 Reinvested ........................................................ 198,516 52,209 Redeemed .......................................................... (125,321) (219,440) ------------ ------------ Net increase in shares outstanding ................................ 1,188,069 1,342,663 Shares outstanding, beginning of period ........................... 4,505,270 3,162,607 ------------ ------------ Shares outstanding, end of period ................................. 5,693,339 4,505,270 ============ ============ See accompanying notes to financial statements.
11
NEW CENTURY CAPITAL PORTFOLIO FINANCIAL HIGHLIGHTS ========================================================================================================================= SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD ========================================================================================================================= SIX MONTHS ENDED APRIL 30, YEARS ENDED OCTOBER 31, 2005 ----------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .......... $ 13.38 $ 12.36 $ 10.09 $ 11.97 $ 18.07 $ 16.71 --------- --------- --------- --------- --------- --------- Income (loss) from investment operations: Net investment loss ......................... (0.02) (0.12) (0.06) (0.08) (0.10) (0.14) Net realized and unrealized gains (losses) on investments .................... 0.40 1.14 2.33 (1.80) (4.62) 2.67 --------- --------- --------- --------- --------- --------- Total from investment operations ............... 0.38 1.02 2.27 (1.88) (4.72) 2.53 --------- --------- --------- --------- --------- --------- Less distributions: Distributions from net investment income .......................... -- -- -- -- -- -- Distributions from net realized gains ........ -- -- -- -- (1.38) (1.17) --------- --------- --------- --------- --------- --------- Total distributions .......................... -- -- -- -- (1.38) (1.17) --------- --------- --------- --------- --------- --------- Net asset value, end of period ............... $ 13.76 $ 13.38 $ 12.36 $ 10.09 $ 11.97 $ 18.07 ========= ========= ========= ========= ========= ========= TOTAL RETURN (a) ................................ 2.84%(b) 8.25% 22.50% (15.71%) (27.77%) 14.92% ========= ========= ========= ========= ========= ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) ............. $ 103,230 $ 103,260 $ 95,396 $ 82,310 $ 109,873 $ 156,668 ========= ========= ========= ========= ========= ========= Ratio of expenses to average net assets (c) ... 1.36%(e) 1.41% 1.45% 1.40% 1.29% 1.27% Ratio of net investment loss to average net assets (d) ...................... (0.32%)(e) (0.91%) (0.59%) (0.62%) (0.72%) (0.80%) Portfolio turnover ............................ 23%(e) 48% 71% 59% 70% 51%
(a) Total return is a measure of the change in the value of an investment in the Portfolio over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. (b) Not annualized. (c) The ratios of expenses to average net assets do not reflect the Portfolio's proportionate share of expenses of the underlying investment companies in which the Portfolio invests. (d) Recognization of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. (e) Annualized. See accompanying notes to financial statements. 12
NEW CENTURY BALANCED PORTFOLIO FINANCIAL HIGHLIGHTS ========================================================================================================================= SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD ========================================================================================================================= SIX MONTHS ENDED APRIL 30, YEARS ENDED OCTOBER 31, 2005 ----------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 - ------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .......... $ 12.30 $ 11.52 $ 9.89 $ 11.35 $ 13.64 $ 13.42 --------- --------- --------- --------- --------- --------- Income (loss) from investment operations: Net investment income ......................... 0.11 0.11 0.16 0.13 0.23 0.22 Net realized and unrealized gains (losses) on investments ...................... 0.23 0.78 1.67 (1.49) (1.71) 1.17 --------- --------- --------- --------- --------- --------- Total from investment operations ................ 0.34 0.89 1.83 (1.36) (1.48) 1.39 --------- --------- --------- --------- --------- --------- Less distributions: Distributions from net investment income ......................... (0.17) (0.11) (0.20) (0.10) (0.23) (0.22) Distributions from net realized gains ....... -- -- -- -- (0.58) (0.95) --------- --------- --------- --------- --------- --------- Total distributions ........................... (0.17) ( 0.11 ) (0.20) (0.10) (0.81) (1.17) --------- --------- --------- --------- --------- --------- Net asset value, end of period ................ $ 12.47 $ 12.30 $ 11.52 $ 9.89 $ 11.35 $ 13.64 ========= ========= ========= ========= ========= ========= TOTAL RETURN (a) ................................ 2.74%(b) 7.75% 18.84% (12.08%) (11.21%) 10.26% ========= ========= ========= ========= ========= ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) ............. $ 73,467 $ 74,327 $ 70,441 $ 62,755 $ 71,251 $ 79,553 ========= ========= ========= ========= ========= ========= Ratio of expenses to average net assets (f) ... 1.41%(e) 1.42%(d) 1.45%(c) 1.48% 1.49% 1.40% Ratio of net investment income to average net assets (g) ...................... 1.65%(e) 0.88%(d) 1.56%(c) 1.19% 1.87% 1.51% Portfolio turnover ............................ 33%(e) 44% 80% 93% 69% 43%
(a) Total return is a measure of the change in the value of an investment in the Portfolio over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. (b) Not annualized. (c) Absent fee waivers and expense reimbursements by the Advisor, the ratio of expenses to average net assets would have been 1.46% and the ratio of net investment income to average net assets would have been 1.55% for the year ended October 31, 2003 (Note 2). (d) Absent the recoupment of fees previously waived and reimbursed by the Advisor, the ratio of expenses to average net assets would have been 1.41% and the ratio of net investment income to average net assets would have been 0.89% for the year ended October 31, 2004 (Note 2). (e) Annualized. (f) The ratios of expenses to average net assets do not reflect the Portfolio's proportionate share of expenses of the underlying investment companies in which the Portfolio invests. (g) Recognization of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. See accompanying notes to financial statements. 13
NEW CENTURY AGGRESSIVE PORTFOLIO FINANCIAL HIGHLIGHTS ======================================================================================================================== SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD ======================================================================================================================== SIX MONTHS ENDED APRIL 30, YEARS ENDED OCTOBER 31, 2005 ---------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .... $ 7.30 $ 6.95 $ 5.47 $ 7.37 $ 10.00 ------------ ------------ ------------ ------------ ------------ Income (loss) from investment operations: Net investment loss ................... (0.01) (0.07) (0.06) (0.07) (0.07) Net realized and unrealized gains (losses) on investments .............. 0.37 0.42 1.54 (1.83) (2.56) ------------ ------------ ------------ ------------ ------------ Total from investment operations ........ 0.36 0.35 1.48 (1.90) (2.63) ------------ ------------ ------------ ------------ ------------ Less distributions: Distributions from net investment income ................... -- -- -- -- -- Distributions from net realized gains . -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ Total distributions ..................... -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ Net asset value, end of period .......... $ 7.66 $ 7.30 $ 6.95 $ 5.47 $ 7.37 ============ ============ ============ ============ ============ TOTAL RETURN (a) .......................... 4.93%(b) 5.04% 27.06% (25.78%) (26.30%) ============ ============ ============ ============ ============ RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) ....... $ 5,294 $ 5,512 $ 4,866 $ 3,610 $ 1,846 ============ ============ ============ ============ ============ Ratios of expenses to average net assets: Before expense reimbursement and waived fees (c) ................. 2.62%(e) 2.71% 3.20% 2.95% 5.90% After expense reimbursement and waived fees (c) ................. 1.50%(e) 1.50% 1.50% 1.50% 1.50% Ratios of net investment loss to average net assets: Before expense reimbursement and waived fees (d) ................. (1.35%)(e) (2.27%) (2.73%) (2.50%) (5.35%) After expense reimbursement and waived fees (d) ................. (0.23%)(e) (1.06%) (1.03%) (1.05%) (0.95%) Portfolio turnover ...................... 15%(e) 68% 78% 120% 86%
(a) Total return is a measure of the change in the value of an investment in the Portfolio over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. (b) Not annualized. (c) The ratios of expenses to average net assets do not reflect the Portfolio's proportionate share of expenses of the underlying investment companies in which the Portfolio invests. (d) Recognization of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. (e) Annualized. See accompanying notes to financial statements. 14
NEW CENTURY INTERNATIONAL PORTFOLIO FINANCIAL HIGHLIGHTS ======================================================================================================================== SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD ======================================================================================================================== SIX MONTHS ENDED APRIL 30, YEARS ENDED OCTOBER 31, 2005 ---------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 - ------------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period .... $ 10.07 $ 8.68 $ 6.52 $ 7.41 $ 10.00 ------------ ------------ ------------ ------------ ------------ Income (loss) from investment operations: Net investment income (loss) .......... 0.01 (0.05) (0.03) (0.06) (0.04) Net realized and unrealized gains (losses) on investments .............. 1.02 1.44 2.19 (0.81) (2.55) ------------ ------------ ------------ ------------ ------------ Total from investment operations ........ 1.03 1.39 2.16 (0.87) (2.59) ------------ ------------ ------------ ------------ ------------ Less distributions: Distributions from net investment income ................... -- -- -- (0.02) -- Distributions from net realized gains . (0.31) -- -- -- -- ------------ ------------ ------------ ------------ ------------ Total distributions ..................... (0.31) -- -- (0.02) -- ------------ ------------ ------------ ------------ ------------ Net asset value, end of period .......... $ 10.79 $ 10.07 $ 8.68 $ 6.52 $ 7.41 ============ ============ ============ ============ ============ TOTAL RETURN (a) .......................... 10.13%(b) 16.01% 33.13% (11.84%) (25.90%) ============ ============ ============ ============ ============ RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) ....... $ 34,462 $ 24,449 $ 15,288 $ 7,655 $ 731 ============ ============ ============ ============ ============ Ratios of expenses to average net assets: Before expense reimbursement and waived fees (c) ................. 1.61%(e) 1.74% 2.11% 2.54% 10.81% After expense reimbursement and waived fees (c) ................. 1.50%(e) 1.50% 1.50% 1.50% 1.50% Ratios of net investment income (loss) to average net assets: Before expense reimbursement and waived fees (d) ................. 0.15%(e) (0.88%) (1.16%) (2.34%) (9.81%) After expense reimbursement and waived fees (d) ................. 0.26%(e) (0.64%) (0.55%) (1.30%) (0.50%) Portfolio turnover ...................... 0%(e) 45% 56% 27% 83%
(a) Total return is a measure of the change in the value of an investment in the Portfolio over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. (b) Not annualized. (c) The ratios of expenses to average net assets do not reflect the Portfolio's proportionate share of expenses of the underlying investment companies in which the Portfolio invests. (d) Recognization of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. (e) Annualized. See accompanying notes to financial statements. 15
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO FINANCIAL HIGHLIGHTS ================================================================================================================== SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD ================================================================================================================== SIX MONTHS ENDED YEARS ENDED OCTOBER 31, APRIL 30, 2005 --------------------------------------------------- (UNAUDITED) 2004 2003 2002(a) - ------------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ....... $ 11.46 $ 10.67 $ 9.12 $ 10.00 ---------- ---------- ---------- ---------- Income (loss) from investment operations: Net investment income .................... 0.17 0.14 0.11 0.01 Net realized and unrealized gains (losses) on investments ......................... 0.19 0.83 1.54 (0.89) ---------- ---------- ---------- ---------- Total from investment operations ........... 0.36 0.97 1.65 (0.88) ---------- ---------- ---------- ---------- Less distributions: Distributions from net investment income . (0.22) (0.18) (0.10) -- Distributions from net realized gains .... (0.25) -- -- -- ---------- ---------- ---------- ---------- Total distributions ........................ (0.47) (0.18) (0.10) -- ---------- ---------- ---------- ---------- Net asset value, end of period ............. $ 11.35 $ 11.46 $ 10.67 $ 9.12 ========== ========== ========== ========== TOTAL RETURN (c) ............................. 3.12%(b) 9.12% 18.20% (8.80%)(b) ========== ========== ========== ========== RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) .......... $ 64,601 $ 51,635 $ 33,734 $ 19,529 ========== ========== ========== ========== Ratios of expenses to average net assets (f) 1.06%(d) 1.12% 1.40% 1.49%(d)(e) Ratios of net investment income to average net assets (g) ................... 1.97%(d) 1.04% 1.06% 0.32%(d)(e) Portfolio turnover ......................... 6%(d) 11% 21% 7%(d)
(a) Represents the period from the initial public offering of shares (May 1, 2002) through October 31, 2002. (b) Not annualized. (c) Total return is a measure of the change in the value of an investment in the Portfolio over the periods covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. (d) Annualized. (e) Absent fee waivers and expense reimbursements by the Advisor, the ratio of expenses to average net assets would have been 1.72%(d) and the ratio of net investment income to average net assets would have been 0.09%(d) for the period ended October 31, 2002 (Note 2). (f) The ratios of expenses to average net assets do not reflect the Portfolio's proportionate share of expenses of the underlying investment companies in which the Portfolio invests. (g) Recognization of net investment income by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. See accompanying notes to financial statements. 16 NEW CENTURY CAPITAL PORTFOLIO PORTFOLIO OF INVESTMENTS APRIL 30, 2005 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 99.4% SHARES VALUE - -------------------------------------------------------------------------------- GROWTH AND INCOME FUNDS -- 35.3% Fidelity Select Utilities Growth ................. 66,093 $ 2,661,568 Hotchkis & Wiley Large Cap Value - Class A ....... 380,152 8,321,538 iShares Dow Jones Select Dividend Index .......... 137,100 8,164,305 iShares Dow Jones U.S. Energy Sector Index ....... 45,700 3,225,049 iShares Russell 1000 Value Index ................. 14,800 959,336 iShares S&P 500 Index ............................ 25,650 2,969,501 iShares S&P MidCap 400/BARRA Value Index ......... 36,500 4,469,425 Powershares Dynamic Market ....................... 51,200 2,001,408 Vanguard 500 Index - Investor Shares ............. 34,759 3,709,111 ------------ 36,481,241 ------------ GROWTH FUNDS -- 33.3% American Funds AMCAP - Class A ................... 214,678 3,728,956 American Growth Fund of America - Class A ........ 260,248 6,818,514 Calamos Growth - Class A (a) ..................... 141,042 6,616,273 Fidelity Capital Appreciation .................... 233,743 5,535,028 Goldman Sachs Growth Opportunities - Class A (a) . 213,091 4,257,568 iShares Russell 1000 Growth Index ................ 235 10,817 Marsico 21st Century (a) ......................... 574,563 6,136,330 Wells Fargo Advantage Endeavor Select - Class A (a) 151,263 1,256,996 ------------ 34,360,482 ------------ SMALL COMPANY FUNDS -- 17.5% Buffalo Small Cap ................................ 52,442 1,326,795 FBR Small Cap (a) ................................ 43,659 1,710,121 iShares S&P SmallCap 600/BARRA Growth Index ...... 21,700 2,153,725 iShares S&P SmallCap 600/BARRA Value Index ....... 13,700 1,533,441 Royce Opportunity - Investor Class (a) ........... 412,915 4,835,233 William Blair Small Cap Growth - Class I (a) ..... 282,545 6,478,748 ------------ 18,038,063 ------------ FOREIGN STOCK FUNDS -- 13.3% Dodge & Cox International Stock .................. 93,583 2,833,688 Fidelity Japan Small Companies ................... 20,473 265,121 iShares MSCI EAFE Index .......................... 13,400 2,094,420 iShares MSCI Emerging Markets Index .............. 19,400 3,885,238 Lazard International Small Cap - Investor Shares . 148,914 2,863,624 Tocqueville International Value (The) ............ 125,587 1,782,080 ------------ 13,724,171 ------------ TOTAL INVESTMENT COMPANIES (Cost $89,408,620)......... $102,603,957 ------------ 17 NEW CENTURY CAPITAL PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) ================================================================================ MONEY MARKET SECURITIES -- 0.7% SHARES VALUE - -------------------------------------------------------------------------------- First American Treasury Obligation - Class A (Cost $750,241) .................................. 750,241 $ 750,241 ------------ TOTAL INVESTMENTS AT VALUE --100.1% (Cost $90,158,861) $103,354,198 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)....... (123,870) ------------ NET ASSETS -- 100.0%.................................. $103,230,328 ============ (a) Non-income producing security. See accompanying notes to financial statements. 18 NEW CENTURY BALANCED PORTFOLIO PORTFOLIO OF INVESTMENTS APRIL 30, 2005 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 98.1% SHARES VALUE - -------------------------------------------------------------------------------- GROWTH AND INCOME FUNDS -- 33.0% Dodge & Cox Stock ................................ 26,898 $ 3,385,111 Fidelity Select Utilities Growth ................. 45,393 1,827,957 Hotchkis & Wiley Large Cap Value - Class A ....... 266,782 5,839,849 iShares Dow Jones Select Dividend Index .......... 90,600 5,395,230 iShares Dow Jones U.S. Energy Sector Index ....... 19,100 1,347,887 iShares Russell 1000 Value Index ................. 200 12,964 iShares S&P 500 Index ............................ 45,900 5,313,843 iShares S&P MidCap 400/BARRA Value Index ......... 4,500 551,025 Vanguard 500 Index - Investor Shares ............. 5,547 591,960 ------------ 24,265,826 ------------ HIGH YIELD BOND FUNDS -- 12.4% Fidelity Advisor High Income Advantage - Class I . 497,009 4,547,631 MainStay High Yield Corporate Bond - Class A ..... 736,334 4,557,908 ------------ 9,105,539 ------------ GROWTH FUNDS -- 11.8% American Funds AMCAP - Class A ................... 161,597 2,806,941 Calamos Growth - Class A (a) ..................... 29,047 1,362,609 Fidelity Capital Appreciation .................... 54,681 1,294,855 iShares Russell 1000 Growth Index ................ 300 13,809 S&P MidCap 400 Depositary Receipts ............... 17,580 2,037,874 Wells Fargo Advantage Endeavor Select - Class A (a) 134,814 1,120,307 ------------ 8,636,395 ------------ SMALL COMPANY FUNDS -- 10.3% FBR Small Cap (a) ................................ 22,666 887,809 iShares S&P SmallCap 600/BARRA Growth Index ...... 15,400 1,528,450 iShares S&P SmallCap 600/BARRA Value Index ....... 13,900 1,555,827 Royce Opportunity - Investor Class (a) ........... 102,269 1,197,571 William Blair Small Cap Growth - Class I (a) ..... 104,528 2,396,834 ------------ 7,566,491 ------------ FOREIGN STOCK FUNDS -- 8.9% Dodge & Cox International Stock .................. 16,512 500,000 iShares MSCI EAFE Index .......................... 19,100 2,985,330 Lazard International Small Cap - Investor Shares . 52,361 1,006,908 Tocqueville International Value (The) ............ 143,495 2,036,192 ------------ 6,528,430 ------------ CONVERTIBLE SECURITY FUNDS -- 5.1% Davis Appreciation & Income ...................... 79,909 2,141,564 Franklin Convertible Securities - Class A ........ 105,834 1,620,319 ------------ 3,761,883 ------------ CORPORATE BOND FUNDS -- 5.0% Loomis Sayles Bond - Institutional Class ......... 272,850 3,678,011 ------------ GOVERNMENT BOND FUNDS -- 4.3% American Century Target Maturities Trust Series 2015 - Investor Class ............. 41,756 3,142,522 ------------ 19 NEW CENTURY BALANCED PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 98.1% (Continued) SHARES VALUE - -------------------------------------------------------------------------------- Worldwide Bond Funds -- 3.5% Loomis Sayles Global Bond - Institutional Class .. 71,792 $ 1,142,935 PIMCO Foreign Bond - Institutional Class ......... 132,146 1,408,673 ------------ 2,551,608 ------------ HIGH QUALITY BOND FUNDS -- 3.1% Dodge & Cox Income ............................... 182,075 2,321,453 ------------ EMERGING MARKETS FUNDS -- 0.7% TCW Galileo Emerging Markets Income - Class I .... 63,132 499,372 ------------ TOTAL INVESTMENT COMPANIES (Cost $64,389,153)......... $ 72,057,530 ------------ ================================================================================ MONEY MARKET SECURITIES -- 2.0% SHARES VALUE - -------------------------------------------------------------------------------- First American Treasury Obligation - Class A (Cost $1,493,744) ................................ 1,493,744 $ 1,493,744 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $65,882,897) $ 73,551,274 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)....... (83,818) ------------ NET ASSETS -- 100.0% ................................. $ 73,467,456 ============ (a) Non-income producing security. See accompanying notes to financial statements. 20 NEW CENTURY AGGRESSIVE PORTFOLIO PORTFOLIO OF INVESTMENTS APRIL 30, 2005 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 99.4% SHARES VALUE - -------------------------------------------------------------------------------- SECTOR FUNDS -- 64.6% Fidelity Select Medical Delivery (a) ............. 5,097 $ 234,911 Fidelity Select Wireless (a) ..................... 19,538 108,632 iShares Dow Jones U.S. Energy Sector Index ....... 13,400 945,638 iShares Goldman Sachs Natural Resources Index .... 4,300 592,540 iShares Goldman Sachs Networking Index (a) ....... 11,100 271,950 iShares MSCI Emerging Markets Index .............. 2,900 580,783 iShares Nasdaq Biotechnology Index (a) ........... 2,800 177,716 Technology Select Sector SPDR .................... 26,800 505,984 ------------ 3,418,154 ------------ MID-CAP FUNDS -- 20.6% Calamos Growth - Class A (a) ..................... 9,313 436,890 iShares S&P MidCap 400/BARRA Growth Index ........ 1,500 192,690 S&P MidCap 400 Depositary Receipts ............... 4,002 463,912 ------------ 1,093,492 ------------ SMALL-CAP FUNDS -- 8.8% Buffalo Small Cap ................................ 10,201 258,097 Perritt Micro Cap Opportunities .................. 8,123 207,043 ------------ 465,140 ------------ LARGE-CAP FUNDS -- 5.4% Fidelity Capital Appreciation .................... 12,030 284,868 ------------ TOTAL INVESTMENT COMPANIES (Cost $4,478,365).......... $ 5,261,654 ------------ ================================================================================ MONEY MARKET SECURITIES -- 0.7% SHARES VALUE - -------------------------------------------------------------------------------- First American Treasury Obligation - Class A (Cost $38,010) ................................... 38,010 $ 38,010 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $4,516,375) $ 5,299,664 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)....... (5,284) ------------ NET ASSETS -- 100.0%.................................. $ 5,294,380 ============ (a) Non-income producing security. See accomanying notes to financial statements. 21 NEW CENTURY INTERNATIONAL PORTFOLIO PORTFOLIO OF INVESTMENTS APRIL 30, 2005 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 98.9% SHARES VALUE - -------------------------------------------------------------------------------- EUROPE FUNDS -- 28.8% iShares MSCI Austria Index ....................... 113,600 $ 2,508,288 iShares MSCI Belgium Index ....................... 81,400 1,482,294 iShares MSCI Germany Index ....................... 97,200 1,681,560 iShares MSCI Sweden Index ........................ 60,300 1,210,221 iShares MSCI United Kingdom Index ................ 45,646 817,520 Ivy European Opportunities - Class A ............. 82,104 2,229,130 ------------ 9,929,013 ------------ DIVERSIFIED FUNDS -- 23.8% Dodge & Cox International Stock .................. 78,279 2,370,283 iShares MSCI EAFE Index .......................... 10,300 1,609,890 Lazard International Small Cap - Investor Shares . 91,181 1,753,414 Oakmark International - Class I .................. 16,170 341,187 Tocqueville International Value (The) ............ 149,313 2,118,758 ------------ 8,193,532 ------------ ASIA/PACIFIC FUNDS -- 21.2% Fidelity Japan Small Companies ................... 111,604 1,445,268 iShares MSCI Australia Index ..................... 100,400 1,692,744 iShares MSCI Pacific Ex-Japan Index .............. 10,700 971,346 Matthews China ................................... 90,910 1,286,373 Matthews Japan (a) ............................... 84,309 1,328,706 Matthews Pacific Tiger - Class I ................. 37,376 586,061 ------------ 7,310,498 ------------ AMERICAS FUNDS -- 14.5% Fidelity Canada .................................. 31,133 1,042,011 iShares MSCI Canada Index ........................ 69,300 1,157,310 iShares MSCI Mexico Index ........................ 32,300 760,665 iShares S&P Latin American 40 Index .............. 25,400 2,046,224 ------------ 5,006,210 ------------ EMERGING MARKETS FUNDS -- 10.6% Dreyfus Premier Emerging Markets - Class A ....... 30,738 584,021 iShares MSCI Emerging Markets Index .............. 6,400 1,281,728 T. Rowe Price Emerging Europe & Mediterranean .... 102,208 1,793,745 ------------ 3,659,494 ------------ TOTAL INVESTMENT COMPANIES (Cost $28,081,879)......... $ 34,098,747 ------------ ================================================================================ MONEY MARKET SECURITIES -- 1.2% SHARES VALUE - -------------------------------------------------------------------------------- First American Treasury Obligation - Class A (Cost $405,142) .................................. 405,142 $ 405,142 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $28,487,021) $ 34,503,889 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)....... (41,666) ------------ NET ASSETS -- 100.0%.................................. $ 34,462,223 ============ (a) Non-income producing security. See accompanying notes to financial statements. 22 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO PORTFOLIO OF INVESTMENTS APRIL 30, 2005 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 97.6% SHARES VALUE - -------------------------------------------------------------------------------- MERGER ARBITRAGE FUNDS -- 15.7% Arbitrage Fund (The) - Class R (a) ............... 204,006 $ 2,395,035 Enterprise Mergers and Acquisitions - Class A (a) 285,285 3,218,013 Gabelli ABC ...................................... 80,208 795,666 Merger Fund (The) ................................ 246,227 3,759,886 ------------ 10,168,600 ------------ LONG/SHORT EQUITY FUNDS -- 13.0% CGM Focus ........................................ 29,099 909,931 Diamond Hill Focus Long-Short - Class I (a) ...... 46,754 665,312 Franklin Templeton Global Long-Short - Class A ... 47,031 530,981 Hussman Strategic Growth ......................... 207,204 3,222,017 Needham Growth (a) ............................... 15,793 446,623 Needham Small Cap Growth (a) ..................... 7,758 126,373 Prudent Bear (a) ................................. 156,585 869,048 Schwab Hedged Equity (a) ......................... 120,475 1,632,442 ------------ 8,402,727 ------------ GLOBAL MACRO FUNDS -- 12.7% Capital and Income Strategies (b) ................ 14,000 238,000 First Eagle Global - Class A ..................... 119,723 4,652,421 Franklin Mutual Discovery - Class Z .............. 79,327 1,930,820 Prudent Global Income ............................ 119,424 1,396,069 ------------ 8,217,310 ------------ ASSET ALLOCATION FUNDS -- 12.6% Berwyn Income .................................... 80,801 948,601 FPA Crescent - Class I ........................... 87,679 2,057,816 Greenspring ...................................... 69,507 1,382,493 Leuthold Core Investment ......................... 120,136 1,871,720 Oakmark Equity and Income - Class I .............. 20,309 468,313 Potomac Contrabond (a) ........................... 17,065 300,000 Rydex Series - Juno - Investor Class (a) ......... 59,749 1,089,231 ------------ 8,118,174 ------------ NATURAL RESOURCES FUNDS -- 9.3% FBR Gas Utility Index ............................ 20,659 332,405 Permanent Portfolio .............................. 24,831 658,028 PIMCO Commodity Real Return Strategy - Class A ... 163,821 2,544,132 RS Global Natural Resources ...................... 72,353 1,800,152 T. Rowe Price New Era ............................ 7,931 271,172 Vanguard Precious Metals & Minerals .............. 25,245 412,497 ------------ 6,018,386 ------------ HIGH YIELD FUNDS -- 7.7% Calamos High Yield - Class A ..................... 59,089 612,752 Fidelity Capital & Income ........................ 75,439 614,829 MainStay Global High Income - Class A ............ 59,063 646,742 MainStay High Yield Corporate Bond - Class A .... 220,178 1,362,899 Neuberger Berman Income Opportunity (b) .......... 39,700 544,684 Pioneer High Yield - Class A ..................... 106,143 1,163,326 ------------ 4,945,232 ------------ 23 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 97.6% (Continued) SHARES VALUE - -------------------------------------------------------------------------------- REAL ESTATE FUNDS -- 7.1% AIM Select Real Estate Income (b) ................ 40,170 $ 641,917 Alpine Realty Income and Growth - Class Y ........ 37,459 790,757 J.P. Morgan U.S. Real Estate - Class A ........... 41,890 730,988 Scudder RREEF Real Estate (b) .................... 16,100 325,220 Third Avenue Real Estate Value ................... 77,035 2,122,322 ------------ 4,611,204 ------------ DEEP VALUE/DISTRESSED SECURITIES FUNDS -- 6.0% Aegis Value ...................................... 37,278 645,657 Franklin Mutual Beacon - Class Z ................. 87,985 1,396,324 Third Avenue Value ............................... 33,757 1,800,237 ------------ 3,842,218 ------------ OPTIONS/HEDGED FUNDS -- 5.4% Gateway .......................................... 144,556 3,512,708 ------------ CONVERTIBLE ARBITRAGE FUNDS -- 4.9% Calamos Market Neutral - A Shares ................ 258,557 3,200,932 ------------ MARKET NEUTRAL FUNDS -- 3.2% J.P. Morgan Market Neutral - Institutional Shares (a) 50,689 553,021 Laudus Rosenberg Value Long/Short Equity (a) ..... 61,508 634,151 Phoenix Capital Market Neutral - Class A (a) ..... 73,071 868,078 ------------ 2,055,250 ------------ TOTAL INVESTMENT COMPANIES (Cost $58,252,101)......... $ 63,092,741 ------------ ================================================================================ COMMON STOCKS -- 0.2% SHARES VALUE - -------------------------------------------------------------------------------- Plum Creek Timber Company, Inc. (Cost $87,952) ................................... 2,950 $ 101,893 ------------ ================================================================================ MONEY MARKET SECURITIES -- 2.6% SHARES VALUE - -------------------------------------------------------------------------------- First American Treasury Obligation - Class A (Cost $1,691,229) ................................ 1,691,229 $ 1,691,229 ------------ TOTAL INVESTMENTS AT VALUE --100.4% (Cost $60,031,282) $ 64,885,863 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.4%)....... (284,827) ------------ NET ASSETS -- 100.0%.................................. $ 64,601,036 ============ (a) Non-income producing security. (b) Closed-end fund. See accompanying notes to financial statements. 24 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS APRIL 30, 2005 (UNAUDITED) ================================================================================ (1) SIGNIFICANT ACCOUNTING POLICIES New Century Portfolios ("New Century") is organized as a Massachusetts business trust which is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company and currently offers shares of five series: New Century Capital Portfolio, New Century Balanced Portfolio, New Century Aggressive Portfolio, New Century International Portfolio and New Century Alternative Strategies Portfolio (together, the "Portfolios"). New Century Aggressive Portfolio and New Century International Portfolio commenced operations on November 1, 2000, and New Century Alternative Strategies Portfolio commenced operations on May 1, 2002. The investment objective of New Century Capital Portfolio is to provide capital growth, with a secondary objective to provide income, while managing risk. This Portfolio seeks to achieve its objectives by investing primarily in shares of other registered investment companies that emphasize investments in equities (domestic and foreign). The investment objective of New Century Balanced Portfolio is to provide income, with a secondary objective to provide capital growth, while managing risk. This Portfolio seeks to achieve its objectives by investing primarily in shares of other registered investment companies that emphasize investments in equities (domestic and foreign), and fixed income securities (domestic and foreign). The investment objective of New Century Aggressive Portfolio is to provide capital growth, without regard to current income, while managing risk. This Portfolio seeks to achieve its objective by investing primarily in shares of registered investment companies that emphasize investments in equities (domestic and foreign). The investment objective of New Century International Portfolio is to provide capital growth, with a secondary objective to provide income, while managing risk. This Portfolio seeks to achieve its objectives by investing primarily in shares of registered investment companies that emphasize investments in equities and fixed income securities (foreign, worldwide, emerging markets and domestic). The investment objective of New Century Alternative Strategies Portfolio is to provide long-term capital appreciation, with a secondary objective to earn income, while managing risk. This Portfolio seeks to achieve its objectives by investing primarily in shares of other registered investment companies that emphasize alternative strategies. The price of shares of each Portfolio fluctuates daily and there is no assurance that the Portfolios will be successful in achieving their stated investment objectives. The following is a summary of significant accounting policies consistently followed by the Portfolios in the preparation of their financial statements. These policies are in conformity with accounting principles generally accepted in the United States of America. 25 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) ================================================================================ A. INVESTMENT VALUATION -------------------- Investments, representing primarily capital stock of other investment companies, are valued at their net asset value as reported by such companies. The net asset value as reported by open-end investment companies may be based on fair value pricing; to understand the fair value pricing process used by such companies, consult their most current prospectus. Investments in securities traded on a national securities exchange are valued at the last reported sales price; securities included in the NASDAQ National Market System are valued at the Nasdaq Official Closing Price; other securities traded in the over-the-counter market and listed securities for which no sale is reported on that date are valued at the last reported bid price. Other assets and securities for which no quotations are readily available or for which quotations Weston Financial Group, Inc. (the "Advisor") believes do not reflect market value are valued at fair value as determined in good faith by the Advisor under the supervision of the Board of Trustees. Short-term investments are valued at amortized cost which approximates market value. B. SHARE VALUATION --------------- The net asset value per share of each Portfolio is calculated daily by dividing the total value of each Portfolio's assets, less liabilities, by the number of shares outstanding. The offering price and redemption price per share of each Portfolio is equal to the net asset value per share, except that effective March 1, 2005, shares of each Portfolio are subject to a redemption fee of 2.00% if redeemed within 30 days of the date of purchase. As of April 30, 2005 there were no redemption fees from the Portfolios. C. INVESTMENT TRANSACTIONS ----------------------- Investment transactions are recorded on a trade date basis. Gains and losses on securities sold are determined on a specific identification method. D. INCOME RECOGNITION ------------------ Interest, if any, is accrued on portfolio investments daily. Dividend income is recorded on the ex-dividend date. E. DISTRIBUTIONS TO SHAREHOLDERS ----------------------------- Dividends arising from net investment income, if any, are declared and paid semi-annually to shareholders of the New Century Balanced and New Century Alternative Strategies Portfolios. Dividends from net investment income, if any, are declared and paid annually for the New Century Capital, New Century Aggressive and New Century International Portfolios. Net realized short-term capital gains, if any, may be distributed throughout the year and net realized long-term capital gains, if any, are distributed at least once each year. Income distributions and capital gain distributions are determined 26 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) ================================================================================ in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. There were no differences between the book and tax basis of distributions for the periods ended April 30, 2005 and October 31, 2004. F. COST OF OPERATIONS ------------------ The Portfolios bear all costs of their operations other than expenses specifically assumed by the Advisor. Expenses directly attributable to a Portfolio are charged to that Portfolio; other expenses are allocated proportionately among the Portfolios in relation to the net assets of each Portfolio. G. USE OF ESTIMATES ----------------- In preparing financial statements in accordance with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities, and revenues and expenses during the reporting period. Actual results could differ from those estimates. (2) INVESTMENT ADVISORY FEE, ADMINISTRATIVE AGREEMENT AND TRUSTEES' FEE Fees paid by the Portfolios pursuant to an Investment Advisory Agreement with the Advisor are computed daily and paid monthly at an annualized rate of 1% on the first $100 million of average daily net assets and .75% of average daily net assets exceeding that amount, except the fees for New Century Alternative Strategies Portfolio are computed at an annualized rate of .75% of average daily net assets. The advisory fees are based on the net assets of each of the Portfolios separately, and not on the total net assets of the Portfolios combined. The Advisor has agreed to limit the total expenses (excluding interest, taxes, brokerage and extraordinary expenses) to an annual rate of 1.50% of average net assets for each of New Century Capital, New Century Balanced, New Century Aggressive, New Century International and New Century Alternative Strategies Portfolios. Accordingly, for the six months ended April 30, 2005, the Advisor waived its entire advisory fee of $27,753 and reimbursed $3,280 of other operating expenses for New Century Aggressive Portfolio and waived investment advisory fees of $16,544 for New Century International Portfolio. No waiver was necessary for New Century Capital, New Century Balanced or New Century Alternative Strategies Portfolios. Any advisory fees waived and/or any other operating expenses absorbed by the Advisor pursuant to an agreed upon expense cap shall be reimbursed by the Portfolio to the Advisor, if so requested by the Advisor, provided the aggregate amount of the Portfolio's current total operating expenses for such fiscal year does not exceed the applicable 27 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) ================================================================================ existing limitation on Portfolio expenses, and the reimbursement is made within three years after the year in which the Advisor incurred the expense. During the six months ended April 30, 2005, the Advisor did not recoup any other fees waived or other operating expenses absorbed from New Century Aggressive Portfolio and New Century International Portfolio. The Advisor has recouped all fees waived and expenses reimbursed for New Century Balanced Portfolio and New Century Alternative Strategies Portfolio. As of April 30, 2005, the amounts available for reimbursement that have been paid and/or waived by the Advisor on behalf of the following Portfolios are as follows: - -------------------------------------------------------------------------------- New Century Aggressive Portfolio .................................. $ 228,357 New Century International Portfolio ............................... $ 190,386 - -------------------------------------------------------------------------------- As of April 30, 2005, the Advisor may recapture a portion of the above amounts no later than the dates as stated below:
- ------------------------------------------------------------------------------------------------------------- OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2005 2006 2007 2008 - ------------------------------------------------------------------------------------------------------------- New Century Aggressive Portfolio ............. $ 64,472 $ 68,836 $ 64,016 $ 31,033 New Century International Portfolio .......... $ 63,079 $ 62,733 $ 48,030 $ 16,544 - -------------------------------------------------------------------------------------------------------------
Fees paid by the Portfolios pursuant to an Administration Agreement with the Advisor to administer the ordinary course of the Portfolios' business are paid monthly from a detail of actual expenses incurred in the overseeing of the Portfolios' affairs. All expenses incurred overseeing the Portfolios' affairs are reimbursed monthly. The Portfolios pay each Trustee who is not affiliated with the Advisor a $10,000 annual retainer, paid quarterly, and a per meeting fee of $1,000. The Portfolios will also pay each Trustee who is not affiliated with the Advisor a $1,000 special meeting fee if held independent of a Regularly Scheduled Board Meeting. Trustees who are affiliated with the Advisor do not receive compensation. (3) DISTRIBUTION PLAN AND OTHER TRANSACTIONS WITH AFFILIATES The Portfolios have adopted a Distribution Plan (the "Plan") under Section 12(b) of the Investment Company Act of 1940 and Rule 12b-1 thereunder. Under the Plan, each Portfolio may pay up to .25% of its average daily net assets to Weston Securities Corporation (the "Distributor") for activities primarily intended to result in the sale of shares. Under its terms, the Plan shall remain in effect from year to year, provided such continuance is approved annually by a vote of a majority of the Trustees and a majority of those Trustees who are not "interested persons" of the Portfolios and who have no direct or indirect financial interest in the operation of the Plan or in any agreement related to the Plan. 28 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) ================================================================================ During the six months ended April 30, 2005, the Distributor received $92,500, $50,734, $6,474, $32,317 and $12,967 from New Century Capital, Balanced, Aggressive, International and Alternative Strategies Portfolios, respectively, pursuant to the Plan. Also during this time, the Distributor received sales commissions and other compensation of $39,426, $42,731, $514, $4,702 and $55,852 in connection with the purchase of investment company shares by New Century Capital, Balanced, Aggressive, International and Alternative Strategies Portfolios, respectively. The Distributor has voluntarily agreed to waive payments made by each Portfolio pursuant to the Plan in amounts equal to the sales commissions and other compensation. Certain officers and trustees of New Century are also officers and/or directors of the Advisor and the Distributor. (4) INVESTMENT TRANSACTIONS For the six months ended April 30, 2005, the cost of purchases and the proceeds from sales of securities other than short-term investments and U.S. government securities were as follows:
- -------------------------------------------------------------------------------------------------------------------- NEW NEW NEW NEW NEW CENTURY CENTURY CENTURY CENTURY CENTURY ALTERNATIVE CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - -------------------------------------------------------------------------------------------------------------------- Purchases of investment securities ......... $12,341,349 $11,968,746 $ 408,329 $ 8,014,079 $14,573,625 =========== =========== =========== =========== =========== Proceeds from sales of investment securities $13,767,138 $13,840,771 $ 835,472 $ -- $ 1,590,926 =========== =========== =========== =========== =========== - --------------------------------------------------------------------------------------------------------------------
(5) TAX MATTERS It is each Portfolio's policy to comply with the special provisions of Subchapter M of the Internal Revenue Code applicable to regulated investment companies. As provided therein, in any fiscal year in which a Portfolio so qualifies and distributes at least 90% of its taxable net income, the Portfolio (but not the shareholders) will be relieved of federal income tax on the income distributed. Accordingly, no provision for income taxes has been made. In order to avoid imposition of the excise tax applicable to regulated investment companies, it is also each Portfolio's intention to declare as dividends in each calendar year at least 98% of its net investment income (earned during the calendar year) and 98% of its net realized capital gains (earned during the twelve months ended October 31) plus undistributed amounts from prior years. 29 NEW CENTURY PORTFOLIOs NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) ================================================================================ The tax character of distributable earnings (deficit) at April 30, 2005 was as follows:
- -------------------------------------------------------------------------------------------------------------------- NEW NEW NEW NEW NEW CENTURY CENTURY CENTURY CENTURY CENTURY ALTERNATIVE CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - -------------------------------------------------------------------------------------------------------------------- Accumulated ordinary income ................ $ 74,083 $ 68,337 $ 251 $ 71,414 $ 133,261 Unrealized appreciation .................... 13,195,337 7,564,042 759,851 6,016,868 4,826,337 Capital loss carryforwards ................. (13,589,122) (5,710,786) (1,510,803) -- -- Other gains ................................ 3,645,123 2,000,718 136,281 150,130 221,017 ----------- ----------- ----------- ----------- ----------- Total distributable earnings (deficit) ..... $ 3,325,421 $ 3,922,311 $ (614,420) $ 6,238,412 $ 5,180,615 =========== =========== =========== =========== =========== - --------------------------------------------------------------------------------------------------------------------
The following information is based upon the federal income tax cost of investment securities as of April 30, 2005:
- -------------------------------------------------------------------------------------------------------------------- NEW NEW NEW NEW NEW CENTURY CENTURY CENTURY CENTURY CENTURY ALTERNATIVE CAPITAL BALANCED AGGRESSIVE INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - -------------------------------------------------------------------------------------------------------------------- Gross unrealized appreciation .............. $13,530,384 $ 8,072,835 $ 827,796 $ 6,178,255 $ 5,934,350 Gross unrealized depreciation .............. (335,047) (508,793) (67,945) (161,387) (1,108,013) ----------- ----------- ----------- ----------- ----------- Net unrealized appreciation ................ $13,195,337 $ 7,564,042 $ 759,851 $ 6,016,868 $ 4,826,337 =========== =========== =========== =========== =========== Federal income tax cost .................... $90,158,861 $65,987,232 $ 4,539,813 $28,487,021 $60,059,526 =========== =========== =========== =========== =========== - --------------------------------------------------------------------------------------------------------------------
The difference between the federal income tax cost of portfolio investments and the financial statement cost for New Century Balanced, Aggressive and Alternative Strategies Portfolios is due to certain timing differences in the recognition of capital losses under income tax regulations and accounting principles generally accepted in the United States of America. These "book/tax" differences are temporary in nature and are primarily due to the tax deferral of losses on wash sales. As of October 31, 2004, the Portfolios had the following capital loss carryforwards for federal income tax purposes. These capital loss carryforwards may be utilized in the current and future years to offset net realized capital gains, if any, prior to distributing such gains to shareholders. - -------------------------------------------------------------------------------- NEW NEW NEW CENTURY CENTURY CENTURY CAPITAL BALANCED AGGRESSIVE EXPIRES OCTOBER 31, PORTFOLIO PORTFOLIO PORTFOLIO - -------------------------------------------------------------------------------- 2009 ....................... $ 1,052,258 $ 829,745 $ -- 2010 ....................... 9,405,834 4,737,511 1,394,145 2011 ....................... 3,131,030 143,530 116,658 ----------- ---------- ---------- $13,589,122 $5,710,786 $1,510,803 =========== ========== ========== - -------------------------------------------------------------------------------- 30 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2005 (UNAUDITED) ================================================================================ (6) CONTINGENCIES AND COMMITMENTS New Century indemnifies its officers and trustees for certain liabilities that might arise from their performance of their duties to the Portfolios. Additionally, in the normal course of business, New Century, on behalf of its Portfolios, enters into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Portfolios' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolios that have not yet occurred. However, based on experience, New Century expects the risk of loss to be remote. 31 NEW CENTURY PORTFOLIOS ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED) ================================================================================ We believe it is important for you to understand the impact of costs on your investment. As a shareholder of the Portfolios, you may incur two types of costs: (1) transaction costs, including redemption fees; and (2) ongoing costs, including management fees, distribution (i.e. 12b-1) fees and other fund expenses. The following examples are intended to help you understand your ongoing costs (in dollars) of investing in the Portfolios and to compare these costs with the ongoing costs of investing in other mutual funds. A fund's expenses are expressed as a percentage of its average net assets. This figure is known as the expense ratio. The examples in the tables below are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The table below illustrates each Portfolio's costs in two ways: ACTUAL FUND RETURN - This section helps you to estimate the actual expenses that you paid over the period. The "Ending Account Value" shown is derived from each Portfolio's actual return, and the third column shows the dollar amount of operating expenses that would have been paid by an investor who started with $1,000 in the Portfolios. You may use the information here, together with the amount you invested, to estimate the expenses that you paid over the period. To do so, 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 given for the Portfolios under the heading "Expenses Paid During Period." HYPOTHETICAL 5% RETURN - This section is intended to help you compare the Portfolios' costs with those of other mutual funds. It assumes that each Portfolio had an annual return of 5% before expenses during the period shown, but that the expense ratio is unchanged. In this case, because the return used is not the Portfolios' actual returns, the results do not apply to your investment. The example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to calculate expenses based on a 5% return. You can assess each Portfolio's costs by comparing this hypothetical example with the hypothetical examples that appear in shareholder reports of other funds. Note that expenses shown in the table are meant to highlight and help you compare ongoing costs only. The Portfolios do not charge sales loads. However, a redemption fee of 2% is applied on the sale of shares of the Portfolios held for less than 30 days. The calculations assume no shares were bought or sold during the period. Your actual costs may have been higher or lower, depending on the amount of your investment and the timing of any purchases or redemptions. 32 NEW CENTURY PORTFOLIOS ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED) ================================================================================ More information about the Portfolios' expenses, including recent annual expense ratios, can be found in this report. For additional information on operating expenses and other shareholder costs, please refer to the Portfolios' prospectus. NEW CENTURY CAPITAL PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid November 1, 2004 April 30, 2005 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $1,028.40 $6.84 Based on Hypothetical 5% Return (before expenses) $1,000.00 $1,018.05 $6.80 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Capital Portfolio's annualized expense ratio of 1.36% for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). NEW CENTURY BALANCED PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid November 1, 2004 April 30, 2005 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $1,027.40 $7.09 Based on Hypothetical 5% Return (before expenses) $1,000.00 $1,017.80 $7.05 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Balanced Portfolio's annualized expense ratio of 1.41% for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). NEW CENTURY AGGRESSIVE PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid November 1, 2004 April 30, 2005 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $1,049.30 $7.62 Based on Hypothetical 5% Return (before expenses) $1,000.00 $1,017.36 $7.50 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Aggressive Portfolio's annualized expense ratio of 1.50% for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). 33 NEW CENTURY PORTFOLIOS ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED) ================================================================================ NEW CENTURY INTERNATIONAL PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid November 1, 2004 April 30, 2005 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $ 1,101.30 $7.82 Based on Hypothetical 5% Return (before expenses) $1,000.00 $ 1,017.36 $7.50 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century International Portfolio's annualized expense ratio of 1.50% for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid November 1, 2004 April 30, 2005 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $ 1,031.20 $5.34 Based on Hypothetical 5% Return (before expenses) $1,000.00 $ 1,019.54 $5.31 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Alternative Strategies Portfolio's annualized expense ratio of 1.06% for the period, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). 34 This page intentionally left blank. This page intentionally left blank. This page intentionally left blank. ================================================================================ INVESTMENT ADVISOR AND ADMINISTRATOR Weston Financial Group, Inc. Wellesley, MA DISTRIBUTOR Weston Securities Corporation Wellesley, MA COUNSEL Greenburg Traurig, LLP Philadelphia, PA INDEPENDENT ACCOUNTANTS Briggs, Bunting and Dougherty, LLP Philadelphia, PA TRANSFER AGENT Ultimus Fund Solutions, LLC Cincinnati, OH CUSTODIAN U.S. Bank, N.A. Cincinnati, OH This report and the financial statements contained herein are submitted for the general information of the shareholders of the Portfolios. This report is authorized for distribution to prospective investors in the Portfolios only if preceded or accompanied by an effective Prospectus which contains details concerning the management fee expense and other pertinent information. A description of the policies and procedures that the Portfolios use to determine how to vote proxies relating to portfolio securities is available without charge upon request by calling toll-free 1-888-639-0102, or on the Securities and Exchange Commission's (SEC) website at http://www.sec.gov. Information regarding how the Portfolios voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge upon request by calling toll-free 1-888-639-0102, or on the SEC's website at http://www.sec.gov. The Portfolios file a complete listing of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Portfolios' Form N-Q is available without charge upon request by calling 1-888-639-0102, or on the SEC's website at http://www.sec.gov. The Portfolios' Form N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC, or by calling 1-800-SEC-0330. ================================================================================ ITEM 2. CODE OF ETHICS. Not required ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not required ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not required ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable [schedule filed with Item 1] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The registrant has a standing nominating committee responsible for the selection and nomination of candidates to serve as trustees of the registrant. Although the nominating committee expects to be able to find an adequate number of qualified candidates to serve as trustees, the nominating committee is willing to consider nominations received from shareholders. Shareholders wishing to submit a nomination should do so by notifying the Secretary of the registrant, in writing, at the following address: 40 William Street, Suite 100, Wellesley, Massachusetts 02481-3902. ITEM 10. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the registrant's principal executive officer and principal financial officer have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that the information required in filings on Form N-CSR is recorded, processed, summarized, and reported on a timely basis. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 11. EXHIBITS. File the exhibits listed below as part of this Form. Letter or number the exhibits in the sequence indicated. (a)(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit: Not required (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable (b) Certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)): Attached hereto Exhibit 99.CERT Certifications required by Rule 30a-2(a) under the Act Exhibit 99.906CERT Certifications required by Rule 30a-2(b) under the Act 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) New Century Portfolios ---------------------------------------------------------- By (Signature and Title)* /s/ Wayne M. Grzecki -------------------------------------------- Wayne M. Grzecki, President Date July 1, 2005 ----------------------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Wayne M. Grzecki -------------------------------------------- Wayne M. Grzecki, President Date July 1, 2005 ----------------------------- By (Signature and Title)* /s/ Nicole M. Tremblay -------------------------------------------- Nicole M. Tremblay, Treasurer Date July 1, 2005 ----------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 ex99cert.txt CERTIFICATIONS REQUIRED BY RULE 30A-2(A) EX-99.CERT CERTIFICATIONS -------------- I, Wayne M. Grzecki, certify that: 1. I have reviewed this report on Form N-CSR of New Century Portfolios; 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 registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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: July 1, 2005 /s/ Wayne M. Grzeck ------------------------------------------ Wayne M. Grzecki, President CERTIFICATIONS -------------- I, Nicole M. Tremblay, certify that: 1. I have reviewed this report on Form N-CSR of New Century Portfolios; 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 registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual 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: July 1, 2005 /s/ Nicole M. Tremblay ------------------------------------------ Nicole M. Tremblay, Treasurer EX-99.906CERT 3 ex99906cert.txt CERTIFICATIONS REQUIRED BY RULE 30A-2(B) EX-99.906CERT CERTIFICATIONS -------------- Wayne M. Grzecki, Chief Executive Officer, and Nicole M. Tremblay, Chief Financial Officer, of New Century Portfolios (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended April 30, 2005 (the "Form N-CSR") fully complies with the requirements of section 15(d) of the Securities Exchange Act of 1934, as amended; and 2. The information contained in the Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Registrant. CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER New Century Portfolios New Century Portfolios /s/ Wayne M. Grzecki /s/ Nicole M. Tremblay - ----------------------------------- ------------------------------------ Wayne M. Grzecki, President Nicole M. Tremblay, Treasurer Date: July 1, 2005 Date: July 1, 2005 A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, OR OTHER DOCUMENT AUTHENTICATING, ACKNOWLEDGING OR OTHERWISE ADOPTING THE SIGNATURE THAT APPEARS IN TYPED FORM WITHIN THE ELECTRONIC VERSION OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906, HAS BEEN PROVIDED TO NEW CENTURY PORTFOLIOS AND WILL BE RETAINED BY NEW CENTURY PORTFOLIOS AND FURNISHED TO THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST. This certification is being furnished to the Securities and Exchange Commission solely pursuant to 18 U.S.C. 1350 and is not being filed as part of the Form N-CSR filed with the Commission. -----END PRIVACY-ENHANCED MESSAGE-----