-----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, LvK4jge1IooBFRWh96zw7kIsCINgINC5yahAMgvfeI/BekMMe9E0hxjIOxvUl+Fn VZQBFVoKdED0lBtbyY/MGg== 0001111830-08-000030.txt : 20080104 0001111830-08-000030.hdr.sgml : 20080104 20080104150038 ACCESSION NUMBER: 0001111830-08-000030 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20071031 FILED AS OF DATE: 20080104 DATE AS OF CHANGE: 20080104 EFFECTIVENESS DATE: 20080104 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-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-05646 FILM NUMBER: 08511152 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 0000838802 S000009278 New Century Capital Portfolio C000025340 New Century Capital Portfolio NCCPX 0000838802 S000009279 New Century Balanced Portfolio C000025341 New Century Balanced Portfolio NCIPX 0000838802 S000009280 New Century Opportunistic Portfolio C000025342 New Century Opportunistic Portfolio NCAPX 0000838802 S000009281 New Century International Portfolio C000025343 New Century International Portfolio NCFPX 0000838802 S000009282 New Century Alternative Strategies Portfolio C000025344 New Century Alternative Strategies Portfolio NCHPX N-CSR 1 ncsr-1007.txt NEW CENTURY PORTFOLIOS N-CSR ------------------------ OMB APPROVAL ------------------------ OMB Number: 3235-0570 Expires: April 30, 2008 Estimated average burden hours per response: 19.4 ------------------------ 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, Suite 100 Wellesley, MA 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, 2007 --------------------------------------------- Date of reporting period: October 31, 2007 --------------------------------------------- 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. ================================================================================ [LOGO] NEW CENTURY PORTFOLIOS NEW CENTURY CAPITAL NEW CENTURY BALANCED NEW CENTURY OPPORTUNISTIC NEW CENTURY INTERNATIONAL NEW CENTURY ALTERNATIVE STRATEGIES ANNUAL REPORT YEAR ENDED OCTOBER 31, 2007 40 WILLIAM STREET, SUITE 100, WELLESLEY MA 02481 781-239-0445 888-639-0102 FAX 781-237-1635 ================================================================================ CONTENTS - -------------------------------------------------------------------------------- PRESIDENT'S LETTER 1-2 PERFORMANCE CHARTS 3-5 PORTFOLIO INFORMATION 6-10 NEW CENTURY PORTFOLIOS Statements of Assets and Liabilities 11 Statements of Operations 12 Statements of Changes in Net Assets 13-15 Financial Highlights 16-20 Portfolios of Investments 21-29 Notes to Financial Statements 30-38 Report of Independent Registered Public Accounting Firm 39 Board of Trustees and Officers 40-41 Federal Tax Information 41 About Your Portfolio's Expenses 42-44 Trustees Approval of Investment Advisory Agreements 45-47 LETTER TO SHAREHOLDERS DECEMBER 2007 ================================================================================ Dear Fellow Shareholders: I am pleased to present our 18th Annual Report. Over the past twelve months, concerns about subprime mortgage loans, the housing slump, increases in energy prices, and the weakening U.S. dollar continue to test the American consumer. Despite increased volatility, U.S. equity markets, as measured by the S&P 500(R) Composite Index, posted a gain of 14.56% during the twelve-month period ended October 31, 2007. International equity markets continued to outpace domestic equities over the twelve-month period. As of October 31, 2007, the international equity markets, as measured by the MSCI EAFE Index, gained 24.91%. The fixed income markets also experienced increased volatility as investors, due to credit and liquidity concerns, fled to higher quality investments. The fixed income markets, as measured by the Lehman Brothers Intermediate U.S. Government/Credit Index, gained 5.65% during the twelve-month period ended October 31, 2007. During this challenging period, the New Century Capital Portfolio implemented several shifts in sector allocation. We continued to emphasize the large-cap growth and the foreign sectors, while continuing to reduce the large-cap value and small-cap sectors. The Portfolio's exposure to the energy sector also increased during the period. The New Century Capital Portfolio gained 20.02% as compared to the S&P 500(R) Composite Index which gained 14.56% for the twelve-month period ended October 31, 2007. Similar to New Century Capital, the New Century Balanced Portfolio increased its allocation to the large-cap growth and foreign sectors, while reducing positions in the large-cap value and small-cap sectors. The increase in the foreign sector was achieved through the addition of multi-asset global investments. In response to the volatile credit environment, the New Century Balanced Portfolio continued to reduce its holdings in high-yield bonds, while increasing exposure to the government and the high quality bond sectors. The Portfolio slightly reduced its equity-to-fixed-income allocation to 64%/36%. During the twelve-month period ended October 31, 2007, the New Century Balanced Portfolio returned 12.09% as compared to the S&P 500(R) Composite Index which gained 14.56% and the Lehman Brothers Intermediate U.S. Government/Credit Index which gained 5.65%. The New Century Opportunistic Portfolio decreased its holdings in the small-cap and the mid-cap sectors while increasing its allocation to large-cap growth. In the sector-specific category, positions in the biotech and technology sectors were reduced, while the global real estate and emerging market sectors were increased. During the twelve-month period ended October 31, 2007, the New Century Opportunistic Portfolio posted a gain of 24.66% while the NASDAQ Composite Index gained 20.81% and the Russell 3000 Growth posted a gain of 19.0%. Over the last twelve months, the New Century International Portfolio increased its allocation to the Americas (ex-US), Pacific Rim, and Global Energy sectors while slightly reducing its allocation to Europe and Japan. The New Century International Portfolio continues to maintain holdings in non-traditional EAFE regions such as India, China and Latin America. 1 During the twelve-month period ended October 31, 2007, the New Century International Portfolio gained 38.62%. The international equity markets, as measured by the MSCI EAFE Index, increased 24.91% during the same time period. The New Century Alternative Strategies Portfolio maintained diversified positions in ten investment strategies, reducing its exposure to the real estate and high-yield categories, while increasing its exposure to global macro strategies. Within the real estate category, domestic holdings were reduced and international holdings increased. The New Century Alternative Strategies Portfolio had a total return of 12.09% for the twelve-month period ended October 31, 2007, as compared to the S&P 500(R) Composite Index which gained 14.56% and the Lehman Brothers Intermediate U.S. Government/Credit Index which gained 5.65% during the same time period. 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 2 PERFORMANCE CHARTS (UNAUDITED) ================================================================================ COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE NEW CENTURY CAPITAL PORTFOLIO AND THE S&P 500(R) COMPOSITE INDEX [GRAPH OMITTED] New Century Capital Portfolio S&P 500(R) Composite Index ----------------------------- -------------------------- Ending Ending Date Balance Date Balance ------ --------- ------ --------- 10/31/1997 $ 10,000 10/31/1997 $ 10,000 10/31/1998 10,797 10/31/1998 12,199 10/31/1999 13,922 10/31/1999 15,331 10/31/2000 15,999 10/31/2000 16,264 10/31/2001 11,558 10/31/2001 12,214 10/31/2002 9,743 10/31/2002 10,369 10/31/2003 11,934 10/31/2003 12,526 10/31/2004 12,919 10/31/2004 13,706 10/31/2005 14,522 10/31/2005 14,901 10/31/2006 16,637 10/31/2006 17,336 10/31/2007 19,968 10/31/2007 19,860 - ------------------------------- NEW CENTURY CAPITAL PORTFOLIO AVERAGE ANNUAL TOTAL RETURNS(a) 1 YEAR 5 YEARS 10 YEARS 20.02% 15.43% 7.16% - ------------------------------- PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE NEW CENTURY BALANCED PORTFOLIO, S&P 500(R) COMPOSITE INDEX AND LEHMAN BROTHERS INTERMEDIATE U.S. GOVERNMENT/CREDIT INDEX [GRAPH OMITTED] New Century Lehman Brothers Intermediate S&P 500(R) Balanced Portfolio U.S. Government/Credit Index Composite Index ------------------ ---------------------------- --------------- Ending Ending Ending Date Balance Date Balance Date Balance - ---------------------- ------------------------ ---------------------- 10/31/1997 $ 10,000 10/31/1997 $ 10,000 10/31/1997 $ 10,000 10/31/1998 10,697 10/31/1998 10,912 10/31/1998 12,199 10/31/1999 12,329 10/31/1999 11,020 10/31/1999 15,331 10/31/2000 13,594 10/31/2000 11,732 10/31/2000 16,265 10/31/2001 12,061 10/31/2001 13,404 10/31/2001 12,215 10/31/2002 10,604 10/31/2002 14,196 10/31/2002 10,369 10/31/2003 12,601 10/31/2003 14,967 10/31/2003 12,524 10/31/2004 13,578 10/31/2004 15,615 10/31/2004 13,704 10/31/2005 14,734 10/31/2005 15,654 10/31/2005 14,899 10/31/2006 16,556 10/31/2006 16,342 10/31/2006 17,333 10/31/2007 18,557 10/31/2007 16,538 10/31/2007 19,860 - ------------------------------- NEW CENTURY BALANCED PORTFOLIO AVERAGE ANNUAL TOTAL RETURNS(a) 1 YEAR 5 YEARS 10 YEARS 12.09% 11.84% 6.38% - ------------------------------- PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. (a) The total returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 3 PERFORMANCE CHARTS (UNAUDITED) (CONTINUED) ================================================================================ COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE NEW CENTURY OPPORTUNISTIC PORTFOLIO AND THE NASDAQ COMPOSITE INDEX [GRAPHIC OMITTED] New Century Opportunistic Portfolio NASDAQ Composite Index ----------------------------------- ---------------------- Ending Ending Date Balance Date Balance ------ --------- ------ --------- 10/31/2000 $ 10,000 10/31/2000 $ 10,000 10/31/2001 7,370 10/31/2001 5,030 10/31/2002 5,470 10/31/2002 3,972 10/31/2003 6,950 10/31/2003 5,798 10/31/2004 7,300 10/31/2004 5,954 10/31/2005 8,720 10/31/2005 6,436 10/31/2006 9,450 10/31/2006 7,239 10/31/2007 11,780 10/31/2007 8,814 - -------------------------------------- NEW CENTURY OPPORTUNISTIC PORTFOLIO AVERAGE ANNUAL TOTAL RETURNS(a) 1 YEAR 5 YEARS SINCE INCEPTION* 24.66% 16.58% 2.37% - -------------------------------------- PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE NEW CENTURY INTERNATIONAL PORTFOLIO AND THE MSCI EAFE INDEX [GRAPHIC OMITTED] New Century International Portfolio MSCI EAFE Index ----------------------------------- --------------- Ending Ending Date Balance Date Balance ------ --------- ------ --------- 10/31/2000 $ 10,000 10/31/2000 $ 10,000 10/31/2001 7,410 10/31/2001 7,532 10/31/2002 6,533 10/31/2002 6,559 10/31/2003 8,697 10/31/2003 8,367 10/31/2004 10,089 10/31/2004 9,979 10/31/2005 12,481 10/31/2005 11,787 10/31/2006 15,645 10/31/2006 15,031 10/31/2007 21,686 10/31/2007 18,778 - ------------------------------------- NEW CENTURY INTERNATIONAL PORTFOLIO AVERAGE ANNUAL TOTAL RETURNS(a) 1 YEAR 5 YEARS SINCE INCEPTION* 38.62% 27.12% 11.70% - ------------------------------------- PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. * Initial public offering of shares was November 1, 2000. (a) The total returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 4 PERFORMANCE CHARTS (UNAUDITED) (CONTINUED) ================================================================================ COMPARISON OF THE CHANGE IN VALUE OF A $10,000 INVESTMENT IN THE NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO, S&P 500(R) COMPOSITE INDEX AND LEHMAN BROTHERS INTERMEDIATE U.S. GOVERNMENT/CREDIT INDEX [GRAPH OMITTED] New Century Alternative S&P 500(R) Lehman Brothers Intermediate Strategies Portfolio Composite Index U.S. Government/Credit Index - -------------------- --------------- ---------------------------- Ending Ending Ending Date Balance Date Balance Date Balance - ---------------------- ------------------------ ---------------------- 5/1/2002 $ 10,000 5/1/2002 $ 10,000 5/1/2002 $ 10,000 5/31/2002 10,000 5/31/2002 9,838 5/31/2002 10,087 6/30/2002 9,720 6/30/2002 9,137 6/30/2002 10,174 7/31/2002 9,290 7/31/2002 8,425 7/31/2002 10,294 8/31/2002 9,340 8/31/2002 8,480 8/31/2002 10,447 9/30/2002 9,110 9/30/2002 7,559 9/30/2002 10,634 10/31/2002 9,120 10/31/2002 8,224 10/31/2002 10,593 11/30/2002 9,330 11/30/2002 8,708 11/30/2002 10,583 12/31/2002 9,325 12/31/2002 8,196 12/31/2002 10,814 1/31/2003 9,285 1/31/2003 7,982 1/31/2003 10,813 2/28/2003 9,264 2/28/2003 7,862 2/28/2003 10,965 3/31/2003 9,295 3/31/2003 7,938 3/31/2003 10,976 4/30/2003 9,618 4/30/2003 8,592 4/30/2003 11,060 5/31/2003 9,982 5/31/2003 9,045 5/31/2003 11,282 6/30/2003 10,083 6/30/2003 9,160 6/30/2003 11,274 7/31/2003 10,194 7/31/2003 9,322 7/31/2003 10,967 8/31/2003 10,376 8/31/2003 9,503 8/31/2003 10,994 9/30/2003 10,477 9/30/2003 9,403 9/30/2003 11,272 10/31/2003 10,780 10/31/2003 9,934 10/31/2003 11,166 11/30/2003 11,002 11/30/2003 10,022 11/30/2003 11,181 12/31/2003 11,270 12/31/2003 10,547 12/31/2003 11,279 1/31/2004 11,383 1/31/2004 10,741 1/31/2004 11,353 2/29/2004 11,557 2/29/2004 10,890 2/29/2004 11,469 3/31/2004 11,629 3/31/2004 10,726 3/31/2004 11,558 4/30/2004 11,260 4/30/2004 10,558 4/30/2004 11,284 5/31/2004 11,342 5/31/2004 10,703 5/31/2004 11,234 6/30/2004 11,455 6/30/2004 10,911 6/30/2004 11,267 7/31/2004 11,342 7/31/2004 10,550 7/31/2004 11,362 8/31/2004 11,414 8/31/2004 10,592 8/31/2004 11,552 9/30/2004 11,639 9/30/2004 10,707 9/30/2004 11,571 10/31/2004 11,762 10/31/2004 10,871 10/31/2004 11,649 11/30/2004 12,111 11/30/2004 11,310 11/30/2004 11,543 12/31/2004 12,290 12/31/2004 11,695 12/31/2004 11,621 1/31/2005 12,119 1/31/2005 11,410 1/31/2005 11,644 2/28/2005 12,429 2/28/2005 11,650 2/28/2005 11,579 3/31/2005 12,322 3/31/2005 11,444 3/31/2005 11,519 4/30/2005 12,130 4/30/2005 11,227 4/30/2005 11,651 5/31/2005 12,290 5/31/2005 11,584 5/31/2005 11,755 6/30/2005 12,482 6/30/2005 11,601 6/30/2005 11,805 7/31/2005 12,793 7/31/2005 12,032 7/31/2005 11,707 8/31/2005 12,889 8/31/2005 11,922 8/31/2005 11,844 9/30/2005 13,114 9/30/2005 12,019 9/30/2005 11,743 10/31/2005 12,836 10/31/2005 11,818 10/31/2005 11,679 11/30/2005 12,996 11/30/2005 12,265 11/30/2005 11,730 12/31/2005 13,189 12/31/2005 12,270 12/31/2005 11,804 1/31/2006 13,632 1/31/2006 12,594 1/31/2006 11,801 2/28/2006 13,587 2/28/2006 12,629 2/28/2006 11,810 3/31/2006 13,798 3/31/2006 12,786 3/31/2006 11,758 4/30/2006 14,030 4/30/2006 12,957 4/30/2006 11,764 5/31/2006 13,831 5/31/2006 12,585 5/31/2006 11,765 6/30/2006 13,875 6/30/2006 12,602 6/30/2006 11,782 7/31/2006 13,986 7/31/2006 12,679 7/31/2006 11,914 8/31/2006 14,107 8/31/2006 12,981 8/31/2006 12,063 9/30/2006 14,096 9/30/2006 13,316 9/30/2006 12,159 10/31/2006 14,417 10/31/2006 13,749 10/31/2006 12,223 11/30/2006 14,705 11/30/2006 14,011 11/30/2006 12,334 12/31/2006 14,779 12/31/2006 14,207 12/31/2006 12,284 1/31/2007 14,965 1/31/2007 14,422 1/31/2007 12,289 2/28/2007 14,988 2/28/2007 14,140 2/28/2007 12,458 3/31/2007 15,139 3/31/2007 14,298 3/31/2007 12,479 4/30/2007 15,406 4/30/2007 14,932 4/30/2007 12,539 5/31/2007 15,684 5/31/2007 15,453 5/31/2007 12,459 6/30/2007 15,568 6/30/2007 15,196 6/30/2007 12,462 7/31/2007 15,336 7/31/2007 14,725 7/31/2007 12,580 8/31/2007 15,371 8/31/2007 14,946 8/31/2007 12,732 9/30/2007 15,812 9/30/2007 15,505 9/30/2007 12,820 10/31/2007 16,160 10/31/2007 15,752 10/31/2007 12,914 - -------------------------------------------- NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO AVERAGE ANNUAL TOTAL RETURNS(a) 1 YEAR 5 YEARS SINCE INCEPTION* 12.09% 12.12% 9.12% - -------------------------------------------- PAST PERFORMANCE IS NOT PREDICTIVE OF FUTURE PERFORMANCE. * Initial public offering of shares was May 1, 2002. (a) The total returns shown do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or the redemption of Portfolio shares. 5 NEW CENTURY CAPITAL PORTFOLIO PORTFOLIO INFORMATION OCTOBER 31, 2007 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Growth Funds - 37.0% [PIE CHART OMITTED] Growth and Income Funds - 30.7% Foreign Stock Funds - 20.5% Small Company Funds - 10.8% Cash Equivalents - 1.0% TOP TEN HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - ----------------------------------------------- -------------- Marsico 21st Century 7.7% American Funds Growth Fund of America - Class A 7.3% iShares MSCI EAFE Index 4.9% iShares MSCI Emerging Markets Index 4.8% Fidelity Capital Appreciation 4.7% iShares Dow Jones U.S. Energy Sector Index 4.5% Goldman Sachs Growth Opportunities - Class A 4.4% Dodge & Cox International Stock 4.3% iShares S&P MidCap 400 Value Index 4.3% Powershares Dynamic Market 4.3% 6 NEW CENTURY BALANCED PORTFOLIO PORTFOLIO INFORMATION OCTOBER 31, 2007 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Growth and Income Funds - 29.8% Foreign Stock Funds - 16.2% Growth Funds - 13.1% Corporate Bond Funds - 8.2% [PIE CHART OMITTED] Government Bond Funds - 7.9% Convertible Security Funds - 6.1% Small Company Funds - 5.0% Worldwide Bond Funds - 4.4% High Quality Bond Funds - 3.8% High Yield Bond Funds - 3.1% Cash Equivalents - 2.4% TOP TEN HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - ------------------------------------------ -------------- Loomis Sayles Bond - Institutional Class 8.2% American Century Target Maturities Trust Series 2015 - Investor Class 7.9% iShares MSCI EAFE Index 6.1% Dodge & Cox Stock 5.6% iShares S&P 500 Index 5.5% First Eagle Global - Class A 5.1% Powershares Dynamic Market 4.5% iShares Dow Jones U.S. Energy Sector Index 4.2% Davis Appreciation & Income 3.8% Fidelity Select Utilities Growth 3.7% 7 NEW CENTURY OPPORTUNISTIC PORTFOLIO PORTFOLIO INFORMATION OCTOBER 31, 2007 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Sector Funds - 45.5% Large-Cap Funds - 30.6% [PIE CHART OMITTED] Mid-Cap Funds - 17.6% Small-Cap Funds - 4.4% Cash Equivalents - 1.9% TOP TEN HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - ------------------------------------------ -------------- Marsico 21st Century 10.6% iShares Dow Jones U.S. Energy Sector Index 9.3% iShares MSCI Emerging Markets Index 8.1% iShares Russell 1000 Growth Index 7.9% Amana Growth 7.7% iShares S&P GSSI Natural Resources Index 7.5% Leuthold Select Industries 7.1% iShares S&P GSTI Networking Index 6.1% Technology Select Sector SPDR 5.9% Janus Orion 5.7% 8 NEW CENTURY INTERNATIONAL PORTFOLIO PORTFOLIO INFORMATION OCTOBER 31, 2007 (UNAUDITED) =============================================================================== ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Europe Funds - 28.2% Diversified Funds - 26.4% [PIE CHART OMITTED] Asia/Pacific Funds - 22.8% Americas Funds - 13.9% Emerging Markets Funds - 6.4% Cash Equivalents - 2.3% TOP TEN HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - ------------------------------------------------- -------------- Janus Overseas 6.0% iShares FTSE/Xinhua China 25 Index 5.5% iShares MSCI Austria Index 4.6% Oppenheimer International Small Company - Class A 4.5% Fidelity Canada 4.2% Ivy European Opportunities - Class A 4.2% AIM European Growth - Class A 4.1% Eaton Vance Greater India - Class A 4.1% iShares S&P Latin American 40 Index 4.0% iShares MSCI EAFE Index 4.0% 9 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO PORTFOLIO INFORMATION OCTOBER 31, 2007 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- Long/Short Equity Funds - 19.8% Merger Arbitrage Funds - 14.7% Global Macro Funds - 14.2% Natural Resources Funds - 10.0% [PIE CHART OMITTED] Asset Allocation Funds - 9.9% Deep Value/Distressed Securities Funds - 6.9% Option Hedged Funds - 6.4% Real Estate Funds - 6.1% Convertible Arbitrage Funds - 4.9% High Yield Funds - 2.7% Structured Notes - 2.4% Cash Equivalents - 2.0% TOP TEN HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - --------------------------------------------- -------------- First Eagle Global - Class A 6.7% Calamos Market Neutral - A Shares 4.9% Merger 4.8% Gateway 4.5% Hussman Strategic Growth 4.1% Enterprise Mergers and Acquisitions - Class A 4.1% Gabelli ABC 3.9% Schwab Hedged Equity Select 3.7% Franklin Mutual Discovery - Class Z 3.3% Fairholme 3.2% 10
NEW CENTURY PORTFOLIOS STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2007 ============================================================================================================================= NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - ----------------------------------------------------------------------------------------------------------------------------- ASSETS Investments in securities: At acquisition cost $ 96,069,552 $ 74,838,026 $ 11,752,242 $ 86,451,709 $ 106,416,452 ============== ============== ============== ============== ============== At value (Note 1A) $ 144,366,861 $ 95,132,510 $ 14,949,625 $ 147,562,032 $ 128,242,252 Dividends receivable 3,932 17,138 1,711 11,069 13,586 Receivable for capital shares sold 1,283 375 -- 4,070 18,250 Other assets 6,831 4,991 651 6,252 5,885 -------------- -------------- -------------- -------------- -------------- TOTAL ASSETS 144,378,907 95,155,014 14,951,987 147,583,423 128,279,973 -------------- -------------- -------------- -------------- -------------- LIABILITIES Payable to Advisor (Note 2) 113,981 81,430 7,740 113,378 82,177 Payable to Distributor (Note 3) 20,800 10,900 2,900 26,500 12,500 Payable for capital shares redeemed 2,300 1,350 -- -- 57,454 Other accrued expenses and liabilities 14,068 9,400 6,184 27,144 10,900 -------------- -------------- -------------- -------------- -------------- TOTAL LIABILITIES 151,149 103,080 16,824 167,022 163,031 -------------- -------------- -------------- -------------- -------------- NET ASSETS $ 144,227,758 $ 95,051,934 $ 14,935,163 $ 147,416,401 $ 128,116,942 ============== ============== ============== ============== ============== Net assets consist of: Paid-in capital $ 89,948,768 $ 69,564,326 $ 11,290,087 $ 82,860,031 $ 103,497,848 Undistributed (distributions in excess of) net investment income -- 334,483 -- -- (45,582) Undistributed net realized gains on investments 5,981,681 4,858,641 447,693 3,446,047 2,838,876 Net unrealized appreciation of investments 48,297,309 20,294,484 3,197,383 61,110,323 21,825,800 -------------- -------------- -------------- -------------- -------------- Net assets $ 144,227,758 $ 95,051,934 $ 14,935,163 $ 147,416,401 $ 128,116,942 ============== ============== ============== ============== ============== Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) 6,975,518 5,893,896 1,267,985 7,347,146 9,197,083 ============== ============== ============== ============== ============== Net asset value, offering price and redemption price per share (a) $ 20.68 $ 16.13 $ 11.78 $ 20.06 $ 13.93 ============== ============== ============== ============== ==============
(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. 11
NEW CENTURY PORTFOLIOS STATEMENTS OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2007 ==================================================================================================================== NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - -------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Dividends $ 1,242,623 $ 2,333,663 $ 127,435 $ 1,759,290 $ 2,384,344 ------------ ------------ ------------ ------------ ------------ EXPENSES Investment advisory fees (Note 2) 1,253,338 908,939 128,500 1,154,406 839,346 Distribution costs (Note 3) 209,248 159,091 28,046 242,158 155,766 Accounting fees 43,417 39,113 31,264 42,027 41,251 Legal and audit fees 39,670 27,561 5,225 36,834 35,818 Administration fees (Note 2) 37,112 27,160 9,164 33,962 31,942 Transfer agent fees 21,000 21,000 21,000 21,000 21,000 Custody fees 22,358 16,741 4,936 22,592 23,313 Trustees' fees and expenses (Note 2) 12,401 8,379 1,187 11,268 10,442 Insurance expense 11,188 7,738 1,140 9,205 9,009 Postage and supplies 10,561 7,158 4,545 6,844 7,085 Other expenses 11,940 8,870 5,356 8,937 9,341 ------------ ------------ ------------ ------------ ------------ Total expenses 1,672,233 1,231,750 240,363 1,589,233 1,184,313 Less fees waived by the Advisor (Note 2) -- -- (48,660) -- -- Plus previously waived investment advisory fees and expense reimbursements recouped by the Advisor (Note 2) -- -- -- 35,096 -- ------------ ------------ ------------ ------------ ------------ Net expenses 1,672,233 1,231,750 191,703 1,624,329 1,184,313 ------------ ------------ ------------ ------------ ------------ NET INVESTMENT INCOME (LOSS) (429,610) 1,101,913 (64,268) 134,961 1,200,031 ------------ ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAINS ON INVESTMENTS Net realized gains on investments 6,828,808 3,862,192 766,321 2,068,729 744,343 Capital gain distributions from regulated investment companies 3,213,012 1,512,727 38,924 2,227,454 3,137,271 Net change in unrealized appreciation/ (depreciation) on investments 14,826,015 3,805,605 2,126,149 35,884,958 7,720,895 ------------ ------------ ------------ ------------ ------------ NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 24,867,835 9,180,524 2,931,394 40,181,141 11,602,509 ------------ ------------ ------------ ------------ ------------ NET INCREASE IN NET ASSETS FROM OPERATIONS $ 24,438,225 $ 10,282,437 $ 2,867,126 $ 40,316,102 $ 12,802,540 ============ ============ ============ ============ ============
See accompanying notes to financial statements. 12
NEW CENTURY PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS ===================================================================================================================== NEW CENTURY NEW CENTURY CAPITAL PORTFOLIO BALANCED PORTFOLIO ------------------------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2007 2006 2007 2006 - --------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net investment income (loss) $ (429,610) $ (556,605) $ 1,101,913 $ 979,158 Net realized gains from security transactions 6,828,808 1,704,300 3,862,192 1,241,744 Capital gain distributions from regulated investment companies 3,213,012 3,556,360 1,512,727 1,607,334 Net change in unrealized appreciation/ (depreciation) on investments 14,826,015 11,233,452 3,805,605 5,632,860 ------------- ------------- ------------- ------------- Net increase in net assets from operations 24,438,225 15,937,507 10,282,437 9,461,096 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (Note 1E) -- -- (1,085,845) (1,111,490) From net realized gains on security transactions (Note 1E) -- -- -- -- ------------- ------------- ------------- ------------- Net decrease in net assets from distributions to shareholders -- -- (1,085,845) (1,111,490) ------------- ------------- ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold 5,930,937 11,070,170 2,918,012 5,087,519 Proceeds from redemption fees collected (Note 1B) 29 -- 56 -- Net asset value of shares issued in reinvestment of distributions to shareholders -- -- 1,045,536 1,066,079 Payments for shares redeemed (10,029,342) (13,697,406) (3,907,332) (5,831,703) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets from capital share transactions (4,098,376) (2,627,236) 56,272 321,895 ------------- ------------- ------------- ------------- TOTAL INCREASE IN NET ASSETS 20,339,849 13,310,271 9,252,864 8,671,501 NET ASSETS Beginning of year 123,887,909 110,577,638 85,799,070 77,127,569 ------------- ------------- ------------- ------------- End of year $ 144,227,758 $ 123,887,909 $ 95,051,934 $ 85,799,070 ============= ============= ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ -- $ 334,483 $ 227,009 ============= ============= ============= ============= CAPITAL SHARE ACTIVITY Sold 313,592 681,814 189,069 367,445 Reinvested -- -- 70,406 79,499 Redeemed (527,053) (846,878) (253,201) (422,404) ------------- ------------- ------------- ------------- Net increase (decrease) in shares outstanding (213,461) (165,064) 6,274 24,540 Shares outstanding, beginning of year 7,188,979 7,354,043 5,887,622 5,863,082 ------------- ------------- ------------- ------------- Shares outstanding, end of year 6,975,518 7,188,979 5,893,896 5,887,622 ============= ============= ============= =============
See accompanying notes to financial statements. 13
NEW CENTURY PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS ============================================================================================================== NEW CENTURY NEW CENTURY OPPORTUNISTIC PORTFOLIO INTERNATIONAL PORTFOLIO ------------------------------------------------------------- YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2007 2006 2007 2006 - -------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net investment income (loss) $ (64,268) $ (98,253) $ 134,961 $ (403,469) Net realized gains from security transactions 766,321 817,940 2,068,729 3,043,416 Capital gain distributions from regulated investment companies 38,924 159,314 2,227,454 875,977 Net change in unrealized appreciation/ (depreciation) on investments 2,126,149 (391,329) 35,884,958 14,609,225 ------------- ------------- ------------- ------------- Net increase in net assets from operations 2,867,126 487,672 40,316,102 18,125,149 ------------- ------------- ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (Note 1E) -- -- (383,067) -- From net realized gains on security transactions (Note 1E) -- -- (4,023,814) (684,174) ------------- ------------- ------------- ------------- Net decrease in net assets from distributions to shareholders -- -- (4,406,881) (684,174) ------------- ------------- ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold 1,357,331 7,157,035 13,917,872 44,931,737 Proceeds from redemption fees collected (Note 1B) -- -- 201 575 Net asset value of shares issued in reinvestment of distributions to shareholders -- -- 3,515,727 576,069 Payments for shares redeemed (1,238,154) (2,587,039) (8,871,897) (5,017,738) ------------- ------------- ------------- ------------- Net increase in net assets from capital share transactions 119,177 4,569,996 8,561,903 40,490,643 ------------- ------------- ------------- ------------- TOTAL INCREASE IN NET ASSETS 2,986,303 5,057,668 44,471,124 57,931,618 NET ASSETS Beginning of year 11,948,860 6,891,192 102,945,277 45,013,659 ------------- ------------- ------------- ------------- End of year $ 14,935,163 $ 11,948,860 $ 147,416,401 $ 102,945,277 ============= ============= ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME $ -- $ -- $ -- $ -- ============= ============= ============= ============= CAPITAL SHARE ACTIVITY Sold 125,648 755,146 822,999 3,448,917 Reinvested -- -- 223,363 44,076 Redeemed (122,107) (281,228) (537,029) (368,210) ------------- ------------- ------------- ------------- Net increase in shares outstanding 3,541 473,918 509,333 3,124,783 Shares outstanding, beginning of year 1,264,444 790,526 6,837,813 3,713,030 ------------- ------------- ------------- ------------- Shares outstanding, end of year 1,267,985 1,264,444 7,347,146 6,837,813 ============= ============= ============= =============
See accompanying notes to financial statements. 14
NEW CENTURY PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS ===================================================================================================== NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO ----------------------------- YEAR YEAR ENDED ENDED OCTOBER 31, OCTOBER 31, 2007 2006 - ----------------------------------------------------------------------------------------------------- FROM OPERATIONS Net investment income $ 1,200,031 $ 1,260,904 Net realized gains from security transactions 744,343 973,092 Capital gain distributions from regulated investment companies 3,137,271 2,145,864 Net change in unrealized appreciation/(depreciation) on investments 7,720,895 5,623,409 ------------- ------------- Net increase in net assets from operations 12,802,540 10,003,269 ------------- ------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (Note 1E) (2,420,775) (2,149,410) From net realized gains on security transactions (Note 1E) (2,247,380) (455,936) ------------- ------------- Net decrease in net assets from distributions to shareholders (4,668,155) (2,605,346) ------------- ------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold 25,078,251 16,213,431 Proceeds from redemption fees collected (Note 1B) 29 -- Net asset value of shares issued in reinvestment of distributions to shareholders 4,619,812 2,588,651 Payments for shares redeemed (7,526,721) (4,949,196) ------------- ------------- Net increase in net assets from capital share transactions 22,171,371 13,852,886 ------------- ------------- TOTAL INCREASE IN NET ASSETS 30,305,756 21,250,809 NET ASSETS Beginning of year 97,811,186 76,560,377 ------------- ------------- End of year $ 128,116,942 $ 97,811,186 ============= ============= UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) $ (45,582) $ 136,487 ============= ============= CAPITAL SHARE ACTIVITY Sold 1,895,144 1,304,516 Reinvested 362,623 217,168 Redeemed (568,214) (398,656) ------------- ------------- Net increase in shares outstanding 1,689,553 1,123,028 Shares outstanding, beginning of year 7,507,530 6,384,502 ------------- ------------- Shares outstanding, end of year 9,197,083 7,507,530 ============= =============
See accompanying notes to financial statements. 15
NEW CENTURY CAPITAL PORTFOLIO FINANCIAL HIGHLIGHTS ================================================================================================================= SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR - ----------------------------------------------------------------------------------------------------------------- YEARS ENDED OCTOBER 31, ------------------------------------------------------------------------- 2007 2006 2005 2004 2003 - ----------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of year $ 17.23 $ 15.04 $ 13.38 $ 12.36 $ 10.09 ----------- ----------- ----------- ----------- ----------- Income (loss) from investment operations: Net investment loss (0.06) (0.08) (0.09) (0.12) (0.06) Net realized and unrealized gains on investments 3.51 2.27 1.75 1.14 2.33 ----------- ----------- ----------- ----------- ----------- Total from investment operations 3.45 2.19 1.66 1.02 2.27 ----------- ----------- ----------- ----------- ----------- Less distributions: Distributions from net investment income -- -- -- -- -- Distributions from net realized gains -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Total distributions -- -- -- -- -- ----------- ----------- ----------- ----------- ----------- Proceeds from redemption fees collected 0.00(a) -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net asset value, end of year $ 20.68 $ 17.23 $ 15.04 $ 13.38 $ 12.36 =========== =========== =========== =========== =========== TOTAL RETURN (b) 20.02% 14.56% 12.41% 8.25% 22.50% =========== =========== =========== =========== =========== RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 144,228 $ 123,888 $ 110,578 $ 103,260 $ 95,396 =========== =========== =========== =========== =========== Ratio of expenses to average net assets (c) 1.25% 1.27% 1.35% 1.41% 1.45% Ratio of net investment loss to average net assets (d) (0.32%) (0.47%) (0.57%) (0.91%) (0.59%) Portfolio turnover 21% 12% 13% 48% 71%
(a) Amount rounds to less than $0.01 per share. (b) Total return is a measure of the change in the value of an investment in the Portfolio over the years covered, which assumes any dividends or capital gains distributions, if any, are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions, if any, or the redemption of Portfolio shares. (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) Recognition of net investment loss 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 BALANCED PORTFOLIO FINANCIAL HIGHLIGHTS =============================================================================================================== SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR - --------------------------------------------------------------------------------------------------------------- YEARS ENDED OCTOBER 31, ----------------------------------------------------------------------- 2007 2006 2005 2004 2003 - --------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of year $ 14.57 $ 13.15 $ 12.30 $ 11.52 $ 9.89 ---------- ---------- ---------- ---------- ---------- Income from investment operations: Net investment income 0.19 0.17 0.15 0.11 0.16 Net realized and unrealized gains on investments 1.56 1.44 0.89 0.78 1.67 ---------- ---------- ---------- ---------- ---------- Total from investment operations 1.75 1.61 1.04 0.89 1.83 ---------- ---------- ---------- ---------- ---------- Less distributions: Distributions from net investment income (0.19) (0.19) (0.19) (0.11) (0.20) Distributions from net realized gains -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- Total distributions (0.19) (0.19) (0.19) (0.11) (0.20) ---------- ---------- ---------- ---------- ---------- Proceeds from redemption fees collected 0.00(a) -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 16.13 $ 14.57 $ 13.15 $ 12.30 $ 11.52 ========== ========== ========== ========== ========== TOTAL RETURN (b) 12.09% 12.37% 8.51% 7.75% 18.84% ========== ========== ========== ========== ========== RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 95,052 $ 85,799 $ 77,128 $ 74,327 $ 70,441 ========== ========== ========== ========== ========== Ratio of expenses to average net assets (e) 1.35% 1.38% 1.38% 1.42%(d) 1.45%(c) Ratio of net investment income to average net assets (f) 1.21% 1.20% 1.12% 0.88%(d) 1.56%(c) Portfolio turnover 28% 22% 21% 44% 80%
(a) Amount rounds to less than $0.01 per share. (b) Total return is a measure of the change in the value of an investment in the Portfolio over the years covered, which assumes any dividends or capital gains distributions, if any, are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions, if any, or the redemption of Portfolio shares. (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) 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. (f) Recognition 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. 17
NEW CENTURY OPPORTUNISTIC PORTFOLIO* FINANCIAL HIGHLIGHTS ============================================================================================================ SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR - ------------------------------------------------------------------------------------------------------------ YEARS ENDED OCTOBER 31, --------------------------------------------------------------- 2007 2006 2005 2004 2003 - ------------------------------------------------------------------------------------------------------------ PER SHARE OPERATING PERFORMANCE Net asset value, beginning of year $ 9.45 $ 8.72 $ 7.30 $ 6.95 $ 5.47 ---------- ---------- ---------- ---------- ---------- Income (loss) from investment operations: Net investment loss (0.05) (0.08) (0.06) (0.07) (0.06) Net realized and unrealized gains on investments 2.38 0.81 1.48 0.42 1.54 ---------- ---------- ---------- ---------- ---------- Total from investment operations 2.33 0.73 1.42 0.35 1.48 ---------- ---------- ---------- ---------- ---------- Less distributions: Distributions from net investment income -- -- -- -- -- Distributions from net realized gains -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- Total distributions -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- Proceeds from redemption fees collected -- -- -- -- -- ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 11.78 $ 9.45 $ 8.72 $ 7.30 $ 6.95 ========== ========== ========== ========== ========== TOTAL RETURN (a) 24.66% 8.37% 19.45% 5.04% 27.06% ========== ========== ========== ========== ========== RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 14,935 $ 11,949 $ 6,891 $ 5,512 $ 4,866 ========== ========== ========== ========== ========== Ratios of expenses to average net assets: Before expense reimbursement and waived fees (b) 1.88% 2.00% 2.56% 2.71% 3.20% After expense reimbursement and waived fees (b) 1.50% 1.50% 1.50% 1.50% 1.50% Ratios of net investment loss to average net assets: Before expense reimbursement and waived fees (c) (0.88%) (1.39%) (1.80%) (2.27%) (2.73%) After expense reimbursement and waived fees (c) (0.50%) (0.89%) (0.74%) (1.06%) (1.03%) Portfolio turnover 47% 49% 19% 68% 78%
* Until March 1, 2006, the New Century Opportunistic Portfolio was known as the "New Century Aggressive Portfolio." (a) Total return is a measure of the change in the value of an investment in the Portfolio over the years covered, which assumes any dividends or capital gains distributions, if any, are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions, if any, or the redemption of Portfolio shares. (b) 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. (c) Recognition of net investment loss 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. 18
NEW CENTURY INTERNATIONAL PORTFOLIO FINANCIAL HIGHLIGHTS ====================================================================================================================== SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR - ---------------------------------------------------------------------------------------------------------------------- YEARS ENDED OCTOBER 31, ------------------------------------------------------------------------------ 2007 2006 2005 2004 2003 - ---------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of year $ 15.06 $ 12.12 $ 10.07 $ 8.68 $ 6.52 ----------- ----------- ----------- ----------- ----------- Income (loss) from investment operations: Net investment income (loss) 0.03 (0.06) (0.06) (0.05) (0.03) Net realized and unrealized gains on investments 5.61 3.12 2.42 1.44 2.19 ----------- ----------- ----------- ----------- ----------- Total from investment operations 5.64 3.06 2.36 1.39 2.16 ----------- ----------- ----------- ----------- ----------- Less distributions: Distributions from net investment income (0.06) -- -- -- -- Distributions from net realized gains (0.58) (0.12) (0.31) -- -- ----------- ----------- ----------- ----------- ----------- Total distributions (0.64) (0.12) (0.31) -- -- ----------- ----------- ----------- ----------- ----------- Proceeds from redemption fees collected 0.00(a) 0.00(a) 0.00(a) -- -- ----------- ----------- ----------- ----------- ----------- Net asset value, end of year $ 20.06 $ 15.06 $ 12.12 $ 10.07 $ 8.68 =========== =========== =========== =========== =========== TOTAL RETURN (b) 38.62% 25.35% 23.70% 16.01% 33.13% =========== =========== =========== =========== =========== RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 147,416 $ 102,945 $ 45,014 $ 24,449 $ 15,288 =========== =========== =========== =========== =========== Ratios of expenses to average net assets: Before expense reimbursement and waived fees (c) 1.35% 1.50% 1.55% 1.74% 2.11% After expense reimbursement and waived fees (c) 1.35%(e) 1.50%(e) 1.50% 1.50% 1.50% Ratios of net investment income (loss) to average net assets: Before expense reimbursement and waived fees (d) 0.11% (0.46%) (0.72%) (0.88%) (1.16%) After expense reimbursement and waived fees (d) 0.11%(e) (0.46%)(e) (0.67%) (0.64%) (0.55%) Portfolio turnover 10% 22% 3% 45% 56%
(a) Amount rounds to less than $0.01 per share. (b) Total return is a measure of the change in the value of an investment in the Portfolio over the years covered, which assumes any dividends or capital gains distributions, if any, are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions, if any, or the redemption of Portfolio shares. (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) Recognition of net investment income (loss) by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. (e) Absent the recoupment of fees previously waived and reimbursed by the Advisor, the ratios of expenses to average net assets would have been 1.32% and 1.41% and the ratios of net investment income (loss) to average net assets would have been 0.14% and (0.37%) for the years ended October 31, 2007 and 2006, respectively (Note 2). See accompanying notes to financial statements. 19
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO FINANCIAL HIGHLIGHTS =========================================================================================================================== SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR - --------------------------------------------------------------------------------------------------------------------------- YEARS ENDED OCTOBER 31, --------------------------------------------------------------------------- 2007 2006 2005 2004 2003 - --------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of year $ 13.03 $ 11.99 $ 11.46 $ 10.67 $ 9.12 ----------- ----------- ----------- ----------- ----------- Income from investment operations: Net investment income 0.18 0.21 0.15 0.14 0.11 Net realized and unrealized gains on investments 1.34 1.23 0.87 0.83 1.54 ----------- ----------- ----------- ----------- ----------- Total from investment operations 1.52 1.44 1.02 0.97 1.65 ----------- ----------- ----------- ----------- ----------- Less distributions: Distributions from net investment income (0.32) (0.33) (0.24) (0.18) (0.10) Distributions from net realized gains (0.30) (0.07) (0.25) -- -- ----------- ----------- ----------- ----------- ----------- Total distributions (0.62) (0.40) (0.49) (0.18) (0.10) ----------- ----------- ----------- ----------- ----------- Proceeds from redemption fees collected 0.00(a) -- 0.00(a) -- -- ----------- ----------- ----------- ----------- ----------- Net asset value, end of year $ 13.93 $ 13.03 $ 11.99 $ 11.46 $ 10.67 =========== =========== =========== =========== =========== TOTAL RETURN (b) 12.09% 12.32% 9.12% 9.12% 18.20% =========== =========== =========== =========== =========== RATIOS/SUPPLEMENTAL DATA Net assets, end of year (000's) $ 128,117 $ 97,811 $ 76,560 $ 51,635 $ 33,734 =========== =========== =========== =========== =========== Ratios of expenses to average net assets (d) 1.06% 1.08% 1.06% 1.12% 1.40%(c) Ratios of net investment income to average net assets (e) 1.07% 1.43% 1.06% 1.04% 1.06%(c) Portfolio turnover 8% 12% 11% 11% 21%
(a) Amount rounds to less than $0.01 per share. (b) Total return is a measure of the change in the value of an investment in the Portfolio over the years covered, which assumes any dividends or capital gains distributions, if any, are reinvested in shares of the Portfolio. Returns shown do not reflect the deduction of taxes a shareholder would pay on Portfolio distributions, if any, or the redemption of Portfolio shares. (c) Absent the recoupment of fees previously waived and reimbursed by the Advisor, the ratio of expenses to average net assets would have been 1.34% and the ratio of net investment income to average net assets would have been 1.12% for the year ended October 31, 2003 (Note 2). (d) 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. (e) Recognition 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. See accompanying notes to financial statements. 20
NEW CENTURY CAPITAL PORTFOLIO PORTFOLIO OF INVESTMENTS OCTOBER 31, 2007 ===================================================================================================== INVESTMENT COMPANIES -- 99.0% SHARES VALUE - ----------------------------------------------------------------------------------------------------- GROWTH FUNDS -- 37.0% Alger Capital Appreciation Institutional - Class I (a) ............. 132,837 $ 2,958,289 American Funds AMCAP - Class A ..................................... 139,927 3,139,966 American Funds Growth Fund of America - Class A .................... 274,721 10,543,775 Calamos Growth - Class A (a) ....................................... 55,868 3,926,961 Columbia Acorn Select - Class A (a) ................................ 121,636 3,714,779 Fidelity Capital Appreciation ...................................... 211,615 6,799,183 Goldman Sachs Growth Opportunities - Class A (a) ................... 235,888 6,326,507 iShares Russell 1000 Growth Index (b) .............................. 235 14,969 Janus Orion ........................................................ 116,276 1,577,868 John Hancock Large Cap Equity - Class I (a) ....................... 51,718 1,536,018 Kinetics Paradigm - Institutional Class ............................ 50,986 1,710,571 Marsico 21st Century ............................................... 579,744 11,084,703 ------------ 53,333,589 ------------ GROWTH AND INCOME FUNDS -- 30.7% Amana Income ....................................................... 141,132 4,575,501 Fidelity Select Utilities Growth ................................... 68,259 4,505,801 iShares Dow Jones Select Dividend Index (b) ........................ 65,100 4,523,148 iShares Dow Jones U.S. Energy Sector Index (b) ..................... 49,400 6,551,922 iShares Russell 1000 Value Index (b) ............................... 28,800 2,475,360 iShares S&P 500 Index (b) .......................................... 17,350 2,691,332 iShares S&P GSSI Natural Resources Index (b) ....................... 10,600 1,421,460 iShares S&P MidCap 400 Value Index (b) ............................. 73,000 6,183,830 Powershares Dynamic Market (b) ..................................... 116,200 6,172,544 Schwab Fundamental U.S. Large Company Index - Institutional Class (a) ................................. 46,339 498,146 Vanguard 500 Index - Investor Shares ............................... 33,007 4,714,317 ------------ 44,313,361 ------------ FOREIGN STOCK FUNDS -- 20.5% Dodge & Cox International Stock .................................... 122,108 6,220,164 First Eagle Global - Class A ....................................... 52,592 2,686,930 iShares MSCI EAFE Index (b) ........................................ 82,200 7,090,572 iShares MSCI Emerging Markets Index (b) ............................ 41,400 6,914,214 Janus Overseas ..................................................... 62,617 3,946,138 Oppenheimer International Small Company - Class A .................. 28,417 1,074,453 Phoenix Foreign Opportunity - Class I .............................. 36,697 1,120,367 Schwab Fundamental International Large Company Index - Institutional Class (a) ................................ 47,126 537,229 ------------ 29,590,067 ------------ SMALL COMPANY FUNDS -- 10.8% Buffalo Small Cap (a) .............................................. 50,619 1,497,823 iShares S&P SmallCap 600 Growth Index (b) .......................... 21,700 3,171,672 iShares S&P SmallCap 600 Value Index (b) ........................... 22,100 1,683,578 Royce Opportunity - Investor Class (a) ............................. 287,206 4,038,111 William Blair Small Cap Growth - Class I (a) ....................... 183,369 5,224,181 ------------ 15,615,365 ------------ TOTAL INVESTMENT COMPANIES (Cost $94,555,073) ......................... $142,852,382 ------------
See accompanying notes to financial statements. 21
NEW CENTURY CAPITAL PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED) OCTOBER 31, 2007 ===================================================================================================== MONEY MARKET SECURITIES -- 1.1% SHARES VALUE - ----------------------------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(c) (Cost $1,514,479) ............................................... 1,514,479 $ 1,514,479 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $96,069,552) ............... $144,366,861 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (139,103) ------------ NET ASSETS -- 100.0% .................................................. $144,227,758 ============
(a) Non-income producing security. (b) Exchange-traded fund. (c) Variable rate security. The coupon rate shown is the effective interest rate at October 31, 2007. See accompanying notes to financial statements. 22
NEW CENTURY BALANCED PORTFOLIO PORTFOLIO OF INVESTMENTS OCTOBER 31, 2007 ===================================================================================================== INVESTMENT COMPANIES -- 97.6% SHARES VALUE - ----------------------------------------------------------------------------------------------------- GROWTH AND INCOME FUNDS -- 29.8% Dodge & Cox Stock .................................................. 33,657 $ 5,355,106 Fidelity Select Utilities Growth ................................... 52,978 3,497,108 iShares Dow Jones Select Dividend Index (b) ........................ 22,600 1,570,248 iShares Dow Jones U.S. Energy Sector Index (b) ..................... 29,800 3,952,374 iShares Russell 1000 Value Index (b) ............................... 20,300 1,744,785 iShares S&P 500 Index (b) .......................................... 33,400 5,181,008 iShares S&P GSSI Natural Resources Index (b) ....................... 10,600 1,421,460 iShares S&P MidCap 400 Value Index (b) ............................. 9,000 762,390 Powershares Dynamic Market (b) ..................................... 81,000 4,302,720 Schwab Fundamental U.S. Large Company Index - Institutional Class (a) ................................. 46,339 498,147 ------------ 28,285,346 ------------ FOREIGN STOCK FUNDS -- 16.2% Dodge & Cox International Stock .................................... 46,631 2,375,390 First Eagle Global - Class A ....................................... 94,872 4,847,003 iShares MSCI EAFE Index (b) ........................................ 66,800 5,762,168 Phoenix Foreign Opportunity - Class I .............................. 55,046 1,680,550 Schwab Fundamental International Large Company Index - Institutional Class (a) ................................ 65,291 744,314 ------------ 15,409,425 ------------ GROWTH FUNDS -- 13.1% American Funds AMCAP - Class A ..................................... 153,493 3,444,395 Columbia Acorn Select - Class A (a) ................................ 31,321 956,546 Fidelity Capital Appreciation ...................................... 30,211 970,675 iShares Russell 1000 Growth Index (b) .............................. 19,600 1,248,520 Marsico 21st Century ............................................... 66,343 1,268,471 S&P MidCap 400 Depositary Receipts (b) ............................. 17,580 2,899,645 Wells Fargo Advantage Endeavor Select - Class A (a) ................ 136,098 1,630,453 ------------ 12,418,705 ------------ CORPORATE BOND FUNDS -- 8.2% Loomis Sayles Bond - Institutional Class ........................... 521,686 7,804,421 ------------ GOVERNMENT BOND FUNDS -- 7.9% American Century Target Maturities Trust Series 2015 - Investor Class .......................................................... 90,573 7,494,945 ------------ CONVERTIBLE SECURITY FUNDS -- 6.1% Davis Appreciation & Income ........................................ 114,008 3,608,361 Franklin Convertible Securities - Class A .......................... 128,793 2,207,515 ------------ 5,815,876 ------------ SMALL COMPANY FUNDS -- 5.0% iShares S&P SmallCap 600 Growth Index (b) .......................... 15,400 2,250,864 iShares S&P SmallCap 600 Value Index (b) ........................... 15,800 1,203,644 Royce Opportunity - Investor Class (a) ............................. 93,558 1,315,429 ------------ 4,769,937 ------------
See accompanying notes to financial statements. 23
NEW CENTURY BALANCED PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED) OCTOBER 31, 2007 ===================================================================================================== INVESTMENT COMPANIES -- 97.6% (CONTINUED) SHARES VALUE - ----------------------------------------------------------------------------------------------------- WORLDWIDE BOND FUNDS -- 4.4% Loomis Sayles Global Bond - Institutional Class .................... 77,236 $ 1,238,091 Templeton Global Bond - Class A .................................... 246,621 2,927,397 ------------ 4,165,488 ------------ HIGH QUALITY BOND FUNDS -- 3.8% Calvert Social Investment - Class I ................................ 63,529 1,017,741 Dodge & Cox Income ................................................. 205,225 2,583,783 ------------ 3,601,524 ------------ HIGH YIELD BOND FUNDS -- 3.1% Loomis Sayles Institutional High Income ............................ 346,928 2,952,358 ------------ TOTAL INVESTMENT COMPANIES (Cost $72,423,541) ......................... $ 92,718,025 ------------ ===================================================================================================== MONEY MARKET SECURITIES -- 2.5% ....................................... SHARES VALUE - ----------------------------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(c) (Cost $2,414,485) ............................................... 2,414,485 $ 2,414,485 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $74,838,026) ............... $ 95,132,510 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (80,576) ------------ NET ASSETS -- 100.0% .................................................. $ 95,051,934 ============
(a) Non-income producing security. (b) Exchange-traded fund. (c) Variable rate security. The coupon rate shown is the effective interest rate at October 31, 2007. See accompanying notes to financial statements. 24
NEW CENTURY OPPORTUNISTIC PORTFOLIO PORTFOLIO OF INVESTMENTS OCTOBER 31, 2007 ===================================================================================================== INVESTMENT COMPANIES -- 98.1% SHARES VALUE - ----------------------------------------------------------------------------------------------------- SECTOR FUNDS -- 45.5% Alpine International Real Estate Equity - Class Y .................. 9,215 $ 438,442 iShares Dow Jones U.S. Energy Sector Index (b) ..................... 10,500 1,392,615 iShares MSCI Emerging Markets Index (b) ............................ 7,200 1,202,472 iShares S&P GSSI Natural Resources Index (b) ....................... 8,300 1,113,030 iShares S&P GSTI Networking Index (b) .............................. 23,900 905,810 ProFunds Oil & Gas UltraSector - Investor Class .................... 8,040 476,029 Technology Select Sector SPDR (b) .................................. 30,800 877,492 T. Rowe Price Emerging Europe & Mediterranean ...................... 10,121 396,557 ------------ 6,802,447 ------------ LARGE-CAP FUNDS -- 30.6% Alger Capital Appreciation - Class I (a) .......................... 13,655 304,096 Amana Growth (a) ................................................... 47,194 1,151,076 iShares Russell 1000 Growth Index (b) ............................. 18,600 1,184,820 iShares S&P 500 Growth Index (b) ................................... 4,800 348,000 Marsico 21st Century ............................................... 82,803 1,583,189 ------------ 4,571,181 ------------ MID-CAP FUNDS -- 17.6% Janus Orion ........................................................ 62,677 850,527 Leuthold Select Industries ......................................... 47,135 1,061,013 S&P MidCap 400 Depositary Receipts (b) ............................. 4,302 709,572 ------------ 2,621,112 ------------ SMALL-CAP FUNDS -- 4.4% iShares S&P SmallCap 600 Growth Index (b) .......................... 4,500 657,720 ------------ TOTAL INVESTMENT COMPANIES (Cost $11,455,077) ......................... $ 14,652,460 ------------ ===================================================================================================== MONEY MARKET SECURITIES -- 2.0% SHARES VALUE - ----------------------------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(c) (Cost $297,165) ................................................. 297,165 $ 297,165 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $11,752,242) ............... $ 14,949,625 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (14,462) ------------ NET ASSETS -- 100.0% .................................................. $ 14,935,163 ============
(a) Non-income producing security. (b) Exchange-traded fund. (c) Variable rate security. The coupon rate shown is the effective interest rate at October 31, 2007. 25 See accompanying notes to financial statements.
NEW CENTURY INTERNATIONAL PORTFOLIO PORTFOLIO OF INVESTMENTS OCTOBER 31, 2007 ===================================================================================================== INVESTMENT COMPANIES -- 97.7% SHARES VALUE - ----------------------------------------------------------------------------------------------------- EUROPE FUNDS -- 28.2% AIM European Growth - Class A ...................................... 122,263 $ 6,017,792 iShares MSCI Austria Index (b) ..................................... 166,200 6,774,312 iShares MSCI Belgium Index (b) ..................................... 110,600 3,060,302 iShares MSCI EMU Index (b) ......................................... 25,800 3,275,310 iShares MSCI France Index (b) ...................................... 10,000 399,500 iShares MSCI Germany Index (b) ..................................... 143,200 5,199,592 iShares MSCI Spain Index (b) ....................................... 44,700 3,025,743 iShares MSCI Sweden Index (b) ...................................... 76,000 2,738,280 iShares MSCI Switzerland Index (b) ................................. 47,500 1,308,150 iShares MSCI United Kingdom Index (b) .............................. 129,746 3,540,768 Ivy European Opportunities - Class A ............................... 134,158 6,183,339 ------------ 41,523,088 ------------ DIVERSIFIED FUNDS -- 26.4% AllianceBernstein International Growth - Class A ................... 101,077 2,370,265 Alpine International Real Estate Equity - Class Y .................. 35,581 1,692,949 Dodge & Cox International Stock .................................... 73,630 3,750,703 iShares MSCI EAFE Index (b) ........................................ 67,800 5,848,428 iShares S&P Global Energy Sector Index (b) ......................... 30,800 4,448,752 Janus Overseas ..................................................... 139,582 8,796,459 Oakmark International - Class I .................................... 118,295 3,195,150 Oppenheimer International Small Company - Class A .................. 176,211 6,662,534 Schwab Fundamental International Large Company Index - Institutional Class (a) ......................... 190,392 2,170,467 ------------ 38,935,707 ------------ ASIA/PACIFIC FUNDS -- 22.8% Eaton Vance Greater India - Class A ................................ 156,734 5,991,938 Fidelity Japan ..................................................... 248,245 4,465,931 iShares FTSE/Xinhua China 25 Index (b) ............................. 37,100 8,121,561 iShares MSCI Australia Index (b) ................................... 168,100 5,834,751 iShares MSCI Japan Index (b) ....................................... 143,800 2,067,844 iShares MSCI Pacific Ex-Japan Index (b) ............................ 21,600 3,925,584 Matthews Pacific Tiger ............................................. 91,120 3,123,576 ------------ 33,531,185 ------------ AMERICAS FUNDS -- 13.9% Fidelity Canada .................................................... 89,164 6,263,798 iShares MSCI Canada Index (b) ...................................... 151,000 5,440,530 iShares MSCI Mexico Index (b) ...................................... 46,800 2,897,388 iShares S&P Latin American 40 Index (b) ............................ 22,200 5,939,166 ------------ 20,540,882 ------------
See accompanying notes to financial statements. 26
NEW CENTURY INTERNATIONAL PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED) OCTOBER 31, 2007 ===================================================================================================== INVESTMENT COMPANIES -- 97.7% (CONTINUED) SHARES VALUE - ----------------------------------------------------------------------------------------------------- EMERGING MARKETS FUNDS -- 6.4% iShares MSCI Emerging Markets Index (b) ............................ 29,000 $ 4,843,290 Oppenheimer Developing Markets - Class A ........................... 31,591 1,853,441 T. Rowe Price Emerging Europe & Mediterranean ...................... 71,620 2,806,054 ------------ 9,502,785 ------------ TOTAL INVESTMENT COMPANIES (Cost $82,923,324) ......................... $144,033,647 ------------ ===================================================================================================== MONEY MARKET SECURITIES -- 2.4% ....................................... SHARES VALUE - ----------------------------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(c) (Cost $3,528,385) ............................................... 3,528,385 $ 3,528,385 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $86,451,709) ............... $147,562,032 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (145,631) ------------ NET ASSETS -- 100.0% .................................................. $147,416,401 ============
(a) Non-income producing security. (b) Exchange-traded fund. (c) Variable rate security. The coupon rate shown is the effective interest rate at October 31, 2007. See accompanying notes to financial statements. 27
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO PORTFOLIO OF INVESTMENTS OCTOBER 31, 2007 ===================================================================================================== INVESTMENT COMPANIES -- 95.6% SHARES VALUE - ----------------------------------------------------------------------------------------------------- LONG/SHORT EQUITY FUNDS -- 19.8% CGM Focus .......................................................... 47,298 $ 2,913,114 Diamond Hill Long-Short - Class I .................................. 199,352 3,867,421 Hussman Strategic Growth ........................................... 323,801 5,229,385 Nationwide U.S. Growth Leaders Long-Short - Class A ................ 48,401 575,493 Prudent Bear ....................................................... 174,837 1,050,772 Schwab Hedged Equity Select ........................................ 287,437 4,711,096 Templeton Global Long-Short - Class A .............................. 184,578 2,672,682 TFS Market Neutral (a) ............................................. 79,706 1,159,728 Weitz Funds (The) - Partners III Opportunity ....................... 307,218 3,145,910 ------------ 25,325,601 ------------ MERGER ARBITRAGE FUNDS -- 14.7% Arbitrage - Class R (a) ............................................ 189,276 2,526,828 Enterprise Mergers and Acquisitions - Class A ...................... 395,800 5,212,684 Gabelli ABC ........................................................ 460,026 4,949,878 Merger ............................................................. 364,382 6,103,401 ------------ 18,792,791 ------------ GLOBAL MACRO FUNDS -- 14.2% Advantage Global Alpha - Class A ................................... 176,909 2,519,189 Calamos Global Growth and Income - Class A (a) ..................... 104,914 1,346,045 First Eagle Global - Class A ....................................... 168,220 8,594,343 Franklin Mutual Discovery - Class Z ................................ 123,259 4,288,184 Oppenheimer International Bond - Class A ........................... 215,098 1,413,192 ------------ 18,160,953 ------------ NATURAL RESOURCES FUNDS -- 10.0% Blackrock Real Asset Equity (c) .................................... 85,000 1,495,150 DWS Global Commodities Stock (c) .................................. 30,303 626,060 Permanent Portfolio ................................................ 19,842 726,006 PIMCO Commodity Real Return Strategy - Class A ..................... 243,395 3,843,207 PowerShares Global Water Portfolio (b) ............................ 65,000 1,448,850 RS Global Natural Resources - Class A .............................. 57,644 2,375,497 T. Rowe Price New Era .............................................. 8,824 567,138 Vanguard Precious Metals & Minerals ................................ 43,842 1,738,773 ------------ 12,820,681 ------------ ASSET ALLOCATION FUNDS -- 9.9% Berwyn Income ...................................................... 132,405 1,670,946 FPA Crescent ....................................................... 112,356 3,078,561 Greenspring ........................................................ 71,634 1,798,738 Leuthold Asset Allocation .......................................... 106,340 1,244,178 Leuthold Core Investment ........................................... 151,557 3,284,250 Oakmark Equity and Income - Class I ................................ 53,833 1,582,146 ------------ 12,658,819 ------------ DEEP VALUE/DISTRESSED SECURITIES FUNDS -- 6.9% Fairholme .......................................................... 118,647 4,131,281 Franklin Mutual Beacon - Class Z ................................... 116,786 2,097,484 Third Avenue Value ................................................. 39,218 2,668,402 ------------ 8,897,167 ------------
See accompanying notes to financial statements. 28
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO PORTFOLIO OF INVESTMENTS (CONTINUED) OCTOBER 31, 2007 ===================================================================================================== INVESTMENT COMPANIES -- 95.6% (CONTINUED) SHARES VALUE - ----------------------------------------------------------------------------------------------------- OPTION HEDGED FUNDS -- 6.4% Gateway ............................................................ 196,660 $ 5,726,748 Nuveen Equity Premium Income (c) ................................... 25,000 421,250 Old Mutual Analytic Defensive Equity - Class Z ..................... 143,526 2,068,216 ------------ 8,216,214 ------------ REAL ESTATE FUNDS -- 6.1% Cohen & Steers International Realty - Class I ...................... 138,550 2,736,355 DJ Wilshire International Real Estate SPDR (b) ..................... 10,000 656,400 JPMorgan U.S. Real Estate - Class A ................................ 31,434 675,201 Third Avenue Real Estate Value ..................................... 104,939 3,722,194 ------------ 7,790,150 ------------ CONVERTIBLE ARBITRAGE FUNDS -- 4.9% Calamos Market Neutral - A Shares .................................. 475,538 6,329,415 ------------ HIGH YIELD FUNDS -- 2.7% Fidelity Capital & Income .......................................... 153,231 1,379,082 Principal High Yield - Class A ..................................... 147,994 1,294,947 Western Asset Emerging Markets Debt (c) ............................ 40,000 724,800 ------------ 3,398,829 ------------ TOTAL INVESTMENT COMPANIES (Cost $100,581,320) ........................ $122,390,620 ------------ ===================================================================================================== STRUCTURED NOTES -- 2.4% .............................................. UNITS VALUE - ----------------------------------------------------------------------------------------------------- Merrill Lynch & Co., Inc., Medium-Term Note, Series C, due 06/10/2008 ........................................ 100,000(d) $ 1,116,000 Morgan Stanley & Co., Inc., Bear Market Plus Note, due 04/20/2008 .. 100,000(d) 924,000 Morgan Stanley & Co., Inc., Bear Market Plus Note, due 07/20/2008 .. 50,000(d) 489,000 Morgan Stanley & Co., Inc., Bear Market Plus Note, due 11/20/2008 .. 60,000(d) 585,000 ------------ TOTAL STRUCTURED NOTES (Cost $3,097,500) .............................. $ 3,114,000 ------------ ===================================================================================================== MONEY MARKET SECURITIES -- 2.1% ....................................... SHARES VALUE - ----------------------------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 4.931%(e) (Cost $2,737,632) ............................................... 2,737,632 $ 2,737,632 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $106,416,452) .............. $128,242,252 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%) ....................... (125,310) ------------ NET ASSETS -- 100.0% .................................................. $128,116,942 ============
(a) Non-income producing security. (b) Exchange-traded fund. (c) Closed-end fund. (d) $10.00 face value per unit. (e) Variable rate security. The coupon rate shown is the effective interest rate at October 31, 2007. See accompanying notes to financial statements. 29 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS OCTOBER 31, 2007 ================================================================================ (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 Opportunistic Portfolio (formerly New Century Aggressive Portfolio), New Century International Portfolio and New Century Alternative Strategies Portfolio (together, the "Portfolios"). New Century Capital Portfolio and New Century Balanced Portfolio commenced operations on January 31, 1989. New Century Opportunistic Portfolio and New Century International Portfolio commenced operations on November 1, 2000, and New Century Alternative Strategies Portfolio commenced operations on May 1, 2002. Weston Financial Group, Inc. (the "Advisor"), a wholly-owned subsidiary of The Washington Trust Company, serves as the investment advisor to each Portfolio. Weston Securities Corporation (the "Distributor"), a wholly-owned subsidiary of Washington Trust Bancorp, Inc., serves as the distributor and principal underwriter to each Portfolio. 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), fixed income securities (domestic and foreign), or in a composite of such securities. This Portfolio will maintain at least 25% of its assets in fixed income securities by selecting registered investment companies that invest in such securities. The investment objective of New Century Opportunistic 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), fixed income securities that seek appreciation such as high-yield, lower rated debt securities (domestic or foreign), or other securities that are selected by those investment companies to achieve growth. 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 30 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2007 ================================================================================ 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. A. INVESTMENT VALUATION Investments, representing primarily capital stock of other open-end investment companies, are valued at their net asset value as reported by such companies. The Portfolios may also invest in closed-end investment companies, exchange traded funds, and to a certain extent, directly in securities. Investments in closed-end investment companies, exchange traded funds and direct investments in securities are valued at market prices, as described in the paragraph below. 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 or included in NASDAQ are generally valued at the last reported sales price, the closing price or the official closing price; and 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. It is expected that fixed income securities will ordinarily be traded in the over-the-counter market. When market quotations are not readily available, fixed income securities may be valued on the basis of prices provided by an independent pricing service. Other assets and securities for which no quotations are readily available or for which quotations the Advisor believes do not reflect market value are valued at their fair value as determined in good faith by the Advisor under the procedures established by the Board of Trustees. Short-term investments are valued at amortized cost which approximates market value. 31 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2007 ================================================================================ 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 shares of each Portfolio are subject to a redemption fee of 2% if redeemed within 30 days of the date of purchase. No redemption fee will be imposed on the exchange of shares among the various Portfolios of the Trust, the redemption of shares representing reinvested dividends or capital gain distributions, or on amounts representing capital appreciation of shares. During the years ended October 31, 2007 and 2006, proceeds from redemption fees totaled $29 and $0, respectively for New Century Capital Portfolio, $56 and $0, respectively for New Century Balanced Portfolio, $201 and $575, respectively for New Century International Portfolio and $29 and $0, respectively, for New Century Alternative Strategies Portfolio. No redemption fees were collected for New Century Opportunistic Portfolio. Any redemption fees are credited to paid-in capital of the applicable Portfolio. 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 and capital gain distributions are recorded on the ex-dividend date or as soon as the information is available if after the ex-date. E. DISTRIBUTIONS TO SHAREHOLDERS Dividends arising from net investment income, if any, are declared and paid semi-annually to shareholders of New Century Balanced and New Century Alternative Strategies Portfolios. Dividends from net investment income, if any, are declared and paid annually for New Century Capital, New Century Opportunistic 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 in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America. The tax character of distributions paid during the years ended October 31, 2007 and 2006 was as follows: 32
NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2007 ===================================================================================== ORDINARY LONG-TERM TOTAL YEAR ENDED INCOME CAPITAL GAINS DISTRIBUTIONS - ------------------------------------------------------------------------------------- NEW CENTURY BALANCED PORTFOLIO October 31, 2007 ...................... $1,085,845 $ -- $1,085,845 October 31, 2006 ...................... $1,111,490 $ -- $1,111,490 NEW CENTURY INTERNATIONAL PORTFOLIO October 31, 2007 ...................... $ 383,067 $4,023,814 $4,406,881 October 31, 2006 ...................... $ -- $ 684,174 $ 684,174 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO October 31, 2007 ...................... $2,646,336 $2,021,819 $4,668,155 October 31, 2006 ...................... $2,149,410 $ 455,936 $2,605,346 - -------------------------------------------------------------------------------------
The differences between the book and tax basis of distributions for the years ended October 31, 2007 and 2006 are permanent in nature and are primarily due to differing treatments of net short-term gains. There were no distributions for New Century Capital and New Century Opportunistic for the years ended October 31, 2007 and 2006. 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 FEES, ADMINISTRATIVE AGREEMENT AND TRUSTEES' FEES Each Portfolio has a separate Investment Advisory Agreement with the Advisor. Investment advisory fees for each Portfolio are computed daily and paid monthly. The investment advisory fees for each Portfolio, except for New Century Alternative Strategies Portfolio, are computed 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. The investment advisory fees for New Century Alternative Strategies Portfolio, however, 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. 33 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2007 ================================================================================ The Advisor has contractually 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 the Portfolios. The total expenses do not include a Portfolio's proportionate share of expenses of the underlying investment companies in which such Portfolio invests. This contractual fee waiver is in place until October 31, 2008. Accordingly, for the year ended October 31, 2007, the Advisor waived $48,660 of advisory fees for New Century Opportunistic Portfolio. No waiver was necessary for New Century Capital, New Century Balanced, New Century International 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 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 year ended October 31, 2007, the Advisor received $35,096 in recouped fees from New Century International Portfolio. During the year ended October 31, 2007, the Advisor did not recoup any fees waived or other operating expenses absorbed from New Century Opportunistic Portfolio. The Advisor has recouped all fees waived and expenses reimbursed for New Century Balanced Portfolio and New Century Alternative Strategies Portfolio. No fees have been waived or reimbursed for New Century Capital Portfolio. As of October 31, 2007, 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 Opportunistic Portfolio ................................. $ 166,870 New Century International Portfolio ................................. $ 18,797 - -------------------------------------------------------------------------------- As of October 31, 2007, the Advisor may recapture a portion of the above amounts no later than the dates as stated below: - -------------------------------------------------------------------------------- OCTOBER 31, OCTOBER 31, OCTOBER 31, 2008 2009 2010 - -------------------------------------------------------------------------------- New Century Opportunistic Portfolio .. $ 62,153 $ 56,057 $ 48,660 New Century International Portfolio .. $ 18,797 $ -- $ -- - -------------------------------------------------------------------------------- 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. 34 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2007 ================================================================================ 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 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. During the year ended October 31, 2007, the Distributor received $209,248, $159,091, $28,046, $242,158 and $155,766 from New Century Capital, Balanced, Opportunistic, International and Alternative Strategies Portfolios, respectively, pursuant to the Plan. As described below, these net amounts were offset by the sales commissions and other compensation received by the Distributor. Also during this time, the Distributor received sales commissions and other compensation of $125,135, $65,976, $3,703, $61,344 and $121,371 in connection with the purchase of investment company shares by New Century Capital, Balanced, Opportunistic, International and Alternative Strategies Portfolios, respectively. The Distributor has voluntarily agreed to reduce 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. 35 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2007 ================================================================================ (4) INVESTMENT TRANSACTIONS For the year ended October 31, 2007, 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 OPPORTUNISTIC INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - ---------------------------------------------------------------------------------------------------------------------------- Purchase of investment securities ............. $ 28,146,017 $ 26,743,308 $ 6,078,081 $ 16,525,657 $ 28,921,993 Proceeds from sales of investment securities .. $ 29,798,198 $ 24,198,929 $ 5,986,741 $ 11,852,689 $ 9,006,750 - ----------------------------------------------------------------------------------------------------------------------------
(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. For the year ended October 31, 2007, the following reclassifications were made as a result of permanent differences between the financial statement and income tax reporting requirements:
- ---------------------------------------------------------------------------------------------- DECREASE IN INCREASE IN ACCUMULATED ACCUMULATED NET NET REALIZED DECREASE IN INVESTMENT GAINS(LOSSES) PAID-IN INCOME (LOSS) ON INVESTMENTS CAPITAL - ---------------------------------------------------------------------------------------------- New Century Capital Portfolio ................. $ 429,610 $ (126,564) $ (303,046) New Century Balanced Portfolio ................ 91,406 (91,406) -- New Century Opportunistic Portfolio ........... 64,268 (4,568) (59,700) New Century International Portfolio ........... 248,106 (248,106) -- New Century Alternative Strategies Portfolio .. 1,038,675 (1,038,675) -- - ----------------------------------------------------------------------------------------------
36 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2007 ================================================================================ These reclassifications did not change the net assets of the Portfolios. The tax character of distributable earnings at October 31, 2007 was as follows:
- ----------------------------------------------------------------------------------------------------------- NEW NEW NEW NEW NEW CENTURY CENTURY CENTURY CENTURY CENTURY ALTERNATIVE CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - ----------------------------------------------------------------------------------------------------------- Undistributed ordinary income .. $ -- $ 334,483 $ -- $ -- $ 16,198 Unrealized appreciation ........ 48,297,309 20,190,454 3,180,945 61,110,323 21,753,487 Undistributed long-term gains .. 5,981,681 4,962,671 464,131 3,446,047 2,849,409 ------------ ------------ ------------ ------------ ------------ Total distributable earnings ... $ 54,278,990 $ 25,487,608 $ 3,645,076 $ 64,556,370 $ 24,619,094 ============ ============ ============ ============ ============ - -----------------------------------------------------------------------------------------------------------
During the year ended October 31, 2007, the following amounts of capital loss carryforwards were utilized to offset current year realized gains: - -------------------------------------------------------------------------------- New Century Capital ............................................. $ 3,929,333 New Century Balanced ............................................ $ 317,777 New Century Opportunistic ....................................... $ 329,546 - -------------------------------------------------------------------------------- The following information is based upon the federal income tax cost of investment securities as of October 31, 2007:
- ----------------------------------------------------------------------------------------------------------------------- NEW NEW NEW NEW NEW CENTURY CENTURY CENTURY CENTURY CENTURY ALTERNATIVE CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - ----------------------------------------------------------------------------------------------------------------------- Tax cost of portfolio investments .. $ 96,069,552 $ 74,942,056 $ 11,768,680 $ 86,451,709 $ 106,488,765 ============= ============= ============= ============= ============= Gross unrealized appreciation ...... $ 48,299,310 $ 20,219,480 $ 3,180,945 $ 61,115,631 $ 22,202,652 Gross unrealized depreciation ...... (2,001) (29,026) -- (5,308) (449,165) ------------- ------------- ------------- ------------- ------------- Net unrealized appreciation ........ $ 48,297,309 $ 20,190,454 $ 3,180,945 $ 61,110,323 $ 21,753,487 ============= ============= ============= ============= ============= - -----------------------------------------------------------------------------------------------------------------------
The difference between the federal income tax cost of portfolio investments and the financial statement cost for New Century Balanced, Opportunistic 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. For New Century Alternative Strategies Portfolio, the difference between tax basis undistributed ordinary income and undistributed net investment income is due to the requirement to accrue income on structured notes for tax purposes. 37 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) OCTOBER 31, 2007 ================================================================================ (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. (7) NEW ACCOUNTING PRONOUNCEMENTS On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 ("FIN 48") "Accounting for Uncertainty in Income Taxes." FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken in the course of preparing each Portfolio's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be booked as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. Recent SEC guidance allows implementing FIN 48 in Portfolio NAV calculations as late as the Portfolio's last such calculation in the first required financial statement period. As a result, the Portfolios will incorporate FIN 48 in their Semi-Annual Report on April 30, 2008. Management is in the process of determining the impact of the adoption of FIN 48. In September 2006, the Financial Accounting Standards Board (FASB) issued Statement on Financial Accounting Standards ("SFAS") No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of SFAS No. 157 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of October 31, 2007, each Portfolio does not believe the adoption of SFAS No. 157 will impact the amounts reported in the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain of the measurements reported on the Statements of Changes in Net Assets for a fiscal period. 38 NEW CENTURY PORTFOLIOS REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ================================================================================ To the Shareholders and Board of Trustees of New Century Portfolios We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of New Century Capital Portfolio, New Century Balanced Portfolio, New Century Opportunistic Portfolio, New Century International Portfolio and New Century Alternative Strategies Portfolio, each a series of shares of beneficial interest of New Century Portfolios, as of October 31, 2007, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2007 by correspondence with the custodian. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of New Century Capital Portfolio, New Century Balanced Portfolio, New Century Opportunistic Portfolio, New Century International Portfolio and New Century Alternative Strategies Portfolio as of October 31, 2007, the results of their operations for the year then ended, the changes in their net assets for each of the years in the two-year period then ended, and their financial highlights for the each of the years in the five-year period then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ Briggs, Bunting & Dougherty, LLP BRIGGS, BUNTING & DOUGHERTY, LLP Philadelphia, Pennsylvania December 21, 2007 39 NEW CENTURY PORTFOLIOS BOARD OF TRUSTEES AND OFFICERS (UNAUDITED) ================================================================================ Overall responsibility for management of New Century rests with the Board of Trustees. The Trustees serve during the lifetime of New Century and until its termination, or until death, resignation, retirement or removal. The Trustees, in turn, elect the officers of New Century to actively supervise its day-to-day operations. The officers have been elected for an annual term. The following table provides information regarding each Trustee and officer of New Century:
NUMBER OF PORTFOLIOS IN OTHER NAME, POSITION(S) FUND COMPLEX DIRECTORSHIPS ADDRESS LENGTH OF HELD WITH PRINCIPAL OCCUPATION(S) OVERSEEN HELD BY AND AGE TIME SERVED NEW CENTURY DURING PAST 5 YEARS BY TRUSTEE TRUSTEE - -------------------------------------------------------------------------------------------------------------------------- INTERESTED TRUSTEES: - -------------------------------------------------------------------------------------------------------------------------- *Douglas A. Biggar Since 1988 Chairman/ Managing Director, 5 None 40 William Street, Trustee Weston Financial Group, Inc.; Suite 100 Vice President of Weston Wellesley, MA 02481 Securities Corporation. (age 60) - -------------------------------------------------------------------------------------------------------------------------- NON-INTERESTED TRUSTEES: - -------------------------------------------------------------------------------------------------------------------------- Stanley H. Cooper, Esq. Since 1988 Trustee Attorney in private practice. 5 None One Ashford Lane Andover, MA 01810 (age 60) - -------------------------------------------------------------------------------------------------------------------------- Roger Eastman, CPA Since 1989 Trustee Retired; Formerly, the Executive 5 None 10682 Gulfshore Drive C-103 Vice President and Chief Operating Naples, FL 34108 Officer, Danvers Savings Bank (age 77) (from 3/97 to 12/03). - -------------------------------------------------------------------------------------------------------------------------- Michael A. Diorio, CPA Since 1988 Trustee Executive Director, Milford 5 Director, 11 Calvin Drive Housing Authority (since 10/04); Milford Milford, MA 01757 Town Accountant, Town of National (age 62) Canton, MA (from 3/01 to 10/04). Bank & Trust since 1996 - -------------------------------------------------------------------------------------------------------------------------- OFFICERS: - -------------------------------------------------------------------------------------------------------------------------- Wayne M. Grzecki Since 1996 President President, Weston Financial 40 William Street, Group, Inc.; President of Suite 100 Weston Securities Corporation. Wellesley, MA 02481 (age 56) - -------------------------------------------------------------------------------------------------------------------------- Ronald A. Sugameli Since 1997 Vice Managing Director, 40 William Street, President Weston Financial Group, Inc.; Suite 100 Vice President of Wellesley, MA 02481 Weston Securities Corporation. (age 55) - --------------------------------------------------------------------------------------------------------------------------
40
NEW CENTURY PORTFOLIOS BOARD OF TRUSTEES AND OFFICERS (UNAUDITED) (CONTINUED) ========================================================================================================================== NAME, POSITION(S) ADDRESS LENGTH OF HELD WITH PRINCIPAL OCCUPATION(S) AND AGE TIME SERVED NEW CENTURY DURING PAST 5 YEARS - -------------------------------------------------------------------------------------------------------------------------- Nicole M. Tremblay, Esq. Since 2002 CFO, Treasurer, Vice President, Chief Compliance 40 William Street, Chief Officer, Weston Financial Group, Suite 100 Compliance Inc.; Vice President, Chief Compliance Wellesley, MA 02481 Officer and Officer, and General Securities Principal (age 33) Secretary of Weston Securities Corporation (Since 11/02) - --------------------------------------------------------------------------------------------------------------------------
* Douglas A. Biggar is considered to be an "interested person" of the Company within the meaning of Section 2(a)(19) of the Investment Company Act of 1940, as amended. Mr. Biggar is an interested person because he is an officer of the Advisor and Distributor. Additional information about members of the Board of Trustees and executive officers is available in the Statement of Additional Information ("SAI"). To obtain a free copy of the SAI, please call 1-888-639-0102. FEDERAL TAX INFORMATION (UNAUDITED) ================================================================================ In accordance with federal tax requirements, the following provides shareholders with information concerning distributions from ordinary income and net realized gains made by the Portfolios during the year ended October 31, 2007. For the year ended October 31, 2007, New Century International Portfolio and New Century Alternative Strategies Portfolio paid long-term capital gains distributions of $4,023,814 and $2,021,819, respectively. For the year ended October 31, 2007, certain dividends paid by the Portfolios may be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. New Century Balanced Portfolio, New Century International Portfolio and New Century Alternative Strategies Portfolio intend to designate up to a maximum of $1,085,845, $383,067 and $2,646,335, respectively, taxed at a maximum rate of 15%. As required by federal regulations, complete information will be computed and reported in conjunction with your 2007 Form 1099-DIV. 41 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 (12b-1) fees and other expenses. The following examples are intended to help you understand 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 Portfolio'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. In addition, the calculations do not reflect the Portfolio's proportionate share of expenses of the underlying investment companies in which the Portfolio invest. 42 NEW CENTURY PORTFOLIOS ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED) (CONTINUED) ================================================================================ 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 May 1, 2007 October 31, 2007 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $ 1,000.00 $ 1,089.00 $ 6.48 Based on Hypothetical 5% Return (before expenses) $ 1,000.00 $ 1,019.00 $ 6.26 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Capital Portfolio's annualized expense ratio of 1.23% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). NEW CENTURY BALANCED PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid May 1, 2007 October 31, 2007 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $ 1,000.00 $ 1,032.70 $ 6.87 Based on Hypothetical 5% Return (before expenses) $ 1,000.00 $ 1,018.45 $ 6.82 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Balanced Portfolio's annualized expense ratio of 1.34% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). NEW CENTURY OPPORTUNISTIC PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid May 1, 2007 October 31, 2007 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $ 1,000.00 $ 1,129.40 $ 7.94 Based on Hypothetical 5% Return (before expenses) $ 1,000.00 $ 1,017.74 $ 7.53 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Opportunistic Portfolio's annualized expense ratio of 1.48% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 43 NEW CENTURY PORTFOLIOS ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED) (CONTINUED) ================================================================================ NEW CENTURY INTERNATIONAL PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid May 1, 2007 October 31, 2007 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $ 1,000.00 $ 1,188.40 $ 7.28 Based on Hypothetical 5% Return (before expenses) $ 1,000.00 $ 1,018.55 $ 6.72 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century International Portfolio's annualized expense ratio of 1.32% for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid May 1, 2007 October 31, 2007 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $ 1,000.00 $ 1,048.90 $ 5.47 Based on Hypothetical 5% Return (before expenses) $ 1,000.00 $ 1,019.86 $ 5.40 - -------------------------------------------------------------------------------- * 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 184/365 (to reflect the one-half year period). 44 NEW CENTURY PORTFOLIOS TRUSTEES APPROVAL OF INVESTMENT ADVISORY AGREEMENTS (UNAUDITED) ================================================================================ Weston Financial Group, Inc. ("Weston") serves as the investment advisor to each Portfolio of the Trust. The Board of Trustees most recently approved the continuance of the investment advisory agreements (collectively, the "Advisory Agreements") between the Trust, on behalf of each of the Capital, Balanced, Opportunistic, International and Alternative Strategies Portfolios, and Weston at a regular meeting of the Board of Trustees held on September 27, 2007. The September 27, 2007 regular meeting of the Board of Trustees was called, in part, to act upon the continuance of such Advisory Agreements. These approvals by the Board of Trustees were unanimous, and therefore included a majority of those trustees who are not "interested persons" of the Trust, as that term is defined in the Investment Company Act of 1940, as amended (the Independent Trustees"), and by a majority of the entire Board. Prior to the meeting, the Board received and reviewed certain materials from Weston. The materials included: (i) a memorandum prepared by independent counsel setting forth the Board's fiduciary duties, responsibilities and the factors they should consider in their evaluation of the renewal of the Advisory Agreements; (ii) information on the background and experience of each Portfolio Manager; (iii) information from a third-party provider concerning investment management fees and total operating expenses paid by other, similar mutual funds; (iv) several memorandums from the Investment Company Institute concerning mutual fund fees and expenses in the industry; (v) a copy of the Advisory Agreements; and (vi) performance information comparing each Portfolio to its relevant benchmark index. The Board of Trustees decided to approve the renewal of the Advisory Agreements for a one-year period commencing November 1, 2007 based upon their evaluation of: (i) the long-term relationship between Weston and the Trust; (ii) Weston's commitment to compliance; (iii) the nature, extent and quality of the services provided; (iv) the performance of each Portfolio; and (v) the costs of the services provided and the profitability of each entity from its relationship with the Portfolios. It was noted that during the Board's consideration of the factors listed above, different trustees gave different weight to different items. In general, the Independent Trustees considered it to be most significant that the proposed investment advisory arrangements would assure a continuity of relationships to service the Portfolios. Each of the Independent Trustees rated as a very important factor the strong management support that Weston provides to the Portfolios. The trustees expressed their approval of the commitment to compliance that Weston has evidenced over the years. Each trustee noted specifically that management has been extremely responsive to any issues raised by the Board. They also expressed their pleasure with the strong relationship that has developed between the Board and the Trust's Chief Compliance Officer. The Board noted that this was the second year since the change in control of Weston, whereby it became a subsidiary of The Washington Trust Company, concluding that the change had been beneficial to the Portfolios and their shareholders. 45 NEW CENTURY PORTFOLIOS TRUSTEES APPROVAL OF INVESTMENT ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED) ================================================================================ The trustees considered the terms and conditions of the existing Advisory Agreements that were being renewed, noting that the terms and conditions were the same, including the provision for advisory fees. The trustees also considered the nature, quality and scope of the investment advisory services that had been provided to the Portfolios by Weston in the past and the services that are expected to continue in the future. Further, the trustees considered the Weston personnel assigned to service the Portfolios. The trustees considered the performance results of each of the Portfolios over various time periods. They reviewed information comparing each Portfolio's performance with the performance of comparable funds and with each Portfolio's benchmark. The also reviewed information provided by Morningstar, Inc. on each Portfolio's risk-adjusted performance. In general, the trustees noted that the Portfolios had been performing competitively in the industry and were pleased with their results, including their Morningstar ratings. The trustees expressed their satisfaction with the experience and performance of the two portfolio managers. They also noted Weston's prudent investment management style. The trustees considered the investment advisory fees paid by each Portfolio directly and in comparison to the fees paid by similar funds within the industry. The trustees were advised that the investment advisory fee charged by the Alternative Strategies Portfolio was comparable to the investment advisory fees charged by other, similar funds within the industry, and that the investment advisory fees charged by the other Portfolios were on track with other similar funds within the industry. It was noted that the Capital, Balanced, Opportunistic and International Portfolios do offer a breakpoint for assets in excess of $100 million that could lower the investment advisory fees as assets grow. The trustees also discussed Weston's expense limitation agreements with each Portfolio. Pursuant to these expense limitation agreements, Weston has agreed to waive fees and/or reimburse certain other expenses so that the ratio of total operating expenses of each Portfolio was limited to 1.50% of such Portfolio's average net assets. The trustees decided that the investment advisory fees charged were fair and reasonable. It also noted that the breakpoints and expense limitation agreements demonstrated Weston's commitment to the Trust and its shareholders. The trustees also reviewed the average total expense ratios of similar equity mutual funds within the industry. They discussed the mutual funds' fixed expenses, such as the use of outside service providers for transfer agency and fund accounting. It was also noted that, as a fund-of-funds complex, the Trust had a different expense ratio structure than most other funds within the industry. The trustees discussed the growth in assets in the Trust during the recent year. The trustees considered the extent to which economies of scale would be realized as a Portfolio grows, noting favorably that economies had been realized in certain Portfolios with respect to the overall total expense ratio. Economies had been realized in Portfolios, such as the Capital and International Portfolios, which were above the investment advisory fee breakpoint amount of $100 million. They also noted that four out of the five Portfolios had total operating expense ratios well below the expense cap limit. 46 NEW CENTURY PORTFOLIOS TRUSTEES APPROVAL OF INVESTMENT ADVISORY AGREEMENTS (UNAUDITED) (CONTINUED) ================================================================================ The trustees noted that the total fees and expenses of the Portfolios were deemed to be fair and reasonable based on the information provided at the Board Meeting with respect to other funds in the industry. The trustees reviewed and discussed other aspects of Weston, such as the profitability of the investment advisor, the benefits each party received from such long-term relationship, and the fact that Weston and its affiliates received other compensation from the relationship such as fees as administrator and fees under a distribution (12b-1) plan. The trustees also noted that one of the trustees, Mr. Biggar, was an affiliate of Weston and the Trust's Distributor and would benefit by the continuance of the investment advisory and distribution agreements. In their deliberations, the Board did not rely upon comparisons of the services to be rendered and the amounts to be paid under the contract with those under other investment advisory contracts, such as contracts of the same and other investment advisers with other registered investment companies or other types of clients (e.g., pension funds and other institutional investors). These factors were considered not to be relevant in a situation where the trustees were determining whether to re-approve the agreements with an existing entity on the same terms and conditions. Such factors would be relevant to considering and approving new investment advisory agreements with other investment advisory entities. 47 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 Greenberg Traurig, LLP Philadelphia, PA INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Briggs, Bunting & 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' Forms N-Q are available without charge upon request by calling 1-888-639-0102, or on the SEC's website at http://www.sec.gov. The Portfolios' Forms 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. As of the end of the period covered by this report, the registrant has adopted a code of ethics that applies to the registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party. Pursuant to Item 12(a)(1), a copy of registrant's code of ethics is filed as an exhibit to this Form N-CSR. During the period covered by this report, the code of ethics has not been amended, and the registrant has not granted any waivers, including implicit waivers, from the provisions of the code of ethics. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The registrant's board of trustees has determined that the registrant has at least one audit committee financial expert serving on its audit committee. The name of the audit committee financial expert is Roger Eastman. Mr. Eastman is "independent" for purposes of this Item. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. (a) AUDIT FEES. The aggregate fees billed for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $50,000 and $45,000 with respect to the registrant's fiscal years ended October 31, 2007 and 2006, respectively. (b) AUDIT-RELATED FEES. No fees were billed in either of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item. (c) TAX FEES. The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $10,000 and $10,000 with respect to the registrant's fiscal years ended October 31, 2007 and 2006, respectively. The services comprising these fees are the preparation of the registrant's federal income and excise tax returns. (d) ALL OTHER FEES. No fees were billed in either of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item. (e)(1) The audit committee has not adopted pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X. (e)(2) None of the services described in paragraph (b) through (d) of this Item were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Less than 50% of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees. (g) During the fiscal years ended October 31, 2007 and 2006, aggregate non-audit fees of $10,000 and $10,000, respectively, were billed by the registrant's accountant for services rendered to the registrant. No non-audit fees were billed in either of the last two fiscal years by the registrant's accountant for services rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant. (h) The principal accountant has not provided any non-audit services that were not previously approved to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant. 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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The registrant has a standing nominating committee responsible for the selection and nomination 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 11. 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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 12. EXHIBITS. 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: Attached hereto (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.CODE ETH Code of Ethics 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 January 4, 2008 ------------------------------------------ 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 January 4, 2008 ------------------------------------------ By (Signature and Title)* /s/ Nicole M. Tremblay ----------------------------------------------------- Nicole M. Tremblay, Treasurer Date January 4, 2008 ------------------------------------------ * Print the name and title of each signing officer under his or her signature. EX-99.CODE ETH 2 ex99codeeth.txt CODE OF ETHICS NEW CENTURY PORTFOLIOS (THE "COMPANY") CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND PRINCIPAL FINANCIAL OFFICERS I. COVERED OFFICERS/PURPOSE OF THE CODE. This code of ethics (the "Code") applies to the Company's Principal Executive Officer and Principal Financial Officer (the "Covered Officers," each of whom are set forth in Exhibit A) for the purpose of promoting: o honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; o full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the U.S. Securities and Exchange Commission (the "SEC") and in other public communications made by the Company; o compliance with applicable laws and governmental rules and regulations; o the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and o accountability for adherence to the Code. Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ANY ACTUAL OR APPARENT CONFLICT OF INTEREST. OVERVIEW. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the Company. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of his or her position with the Company. Certain conflicts of interest arise out of the relationships between Covered Officers and the Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the "1940 Act") and the Investment Advisers Act of 1940 (the "Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of certain securities or other property) with the Company because of their status as "affiliated persons" of the Company. The Company and its investment adviser and principal underwriter have compliance programs and procedures that are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace those programs and procedures, and such conflicts fall outside of the parameters of this Code.(1) - ---------- (1) The Company, its investment adviser and its principal underwriter are subject to a separate code of ethics that conforms to the provisions of Rule 17j-1 of the 1940 Act. Such other codes address additional topics, have separate reporting and clearance requirements and applies to additional persons. Covered Officers are required to adhere to the requirements of both this Code and their applicable code adopted pursuant to Rule 17j-1 under the 1940 Act. The Covered Officers are also owners, officers and/or employees of the Company's investment adviser, Weston Financial Group, Inc. Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between the Company and its investment adviser. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Company or for the investment adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the investment adviser and the Company. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Company and the investment adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Company. Thus, if performed in conformity with the provisions of the 1940 Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Board of Directors of the Company (the "Board") that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes. Other conflicts of interest are covered by this Code, even if such conflicts of interest are not subject to provisions in the 1940 Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under this Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Company. * * * * Each Covered Officer must: o not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Company whereby the Covered Officer would benefit personally to the detriment of the Company; o not cause the Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Company. There are some conflict of interest situations that require approval by the chief compliance officer of the Company(2) or the Company' Board. There are other such situations that warrant disclosure to the Company's Board, if material. Examples of these include:(3) o service as a director on the board of any public company must be approved in writing by the Board based upon a determination that such other board service would not be inconsistent with the interests of the Company or its shareholders; o the receipt of any gifts of more than a DE MINIMUS value; - -------------------------------------------------------------------------------- Section V of this Code deals with situations where this Code may conflict with the provisions of another code adopted pursuant to Rule 17j-1 under the 1940 Act. (2) If the Company's chief compliance officer is a Covered Officer, the issue should be discussed with another appropriate party. Examples of other, appropriate parties are persons associated with the Company that have sufficient status within the Company to engender respect for the Code and the authority to adequately deal with the Covered Officers subject to the Code regardless of their stature in the Company. For example, it may be appropriate to deal with a partner of the Company's investment adviser. Other examples include an attorney from Greenberg Traurig, LLP, counsel to the Company and to the members of the Board who are not "interested persons," as that term is defined in the 1940 Act; and members of the Company's Audit Committee. (3) Any activity or relationship that would present a conflict for a Covered Officer would likely also present a conflict for the Covered Officer if a member of the Covered Officer's family engages in such an activity or has such a relationship. 2 o the receipt of any entertainment from any company with which the Company has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; o any ownership interest in, or any consulting or employment relationship with, any of the Company's service providers, other than its investment adviser, principal underwriter, administrator, or any affiliated person thereof; o a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment with the Company, the Investment Adviser, Broker Dealer or Insurance Agency, such as compensation or equity ownership. III. DISCLOSURE AND COMPLIANCE. o Each Covered Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Company; o each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company, including to the Company's Board and auditors, and to governmental regulators and self-regulatory organizations; o each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Company and the investment adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Company files with, or submits to, the SEC and in other public communications made by the Company; and o it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. IV. REPORTING AND ACCOUNTABILITY. Each Covered Officer must: o upon adoption of this Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he or she has received, read, and understands the Code; o annually thereafter affirm to the Board that he or she has complied with the requirements of this Code; o not retaliate against any other Covered Officer or any employees of the Company or their affiliated persons for reports of potential violations that are made in good faith; and o notify the Audit Committee promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of this Code. 3 The chief compliance officer of the Company is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation.(4) However, any approvals or waivers (5) sought by the Principal Executive Officer will be considered by the Audit Committee of the Company. The Company will follow these procedures in investigating and enforcing this Code: o the chief compliance officer will take all appropriate action to investigate any potential violations reported to her; o if, after such investigation, the chief compliance officer believes that no violation has occurred, the chief compliance officer is not required to take any further action; o any matter that the chief compliance officer believes is a violation will be reported to the Audit Committee; o if the Audit Committee concurs that a violation has occurred, it will inform and make a recommendation to the entire Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the investment adviser or its board; or a recommendation to dismiss the Covered Officer; o the Audit Committee will be responsible for granting waivers, as appropriate; and o any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. V. OTHER POLICIES AND PROCEDURES. This Code shall be the sole code of ethics adopted by the Company for the purposes of Section 406 of the Sarbanes -- Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Company, the investment adviser, the principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Company's and its investment adviser's and principal underwriter's codes of ethics under Rule 17j-l under the 1940 Act, and any investment adviser's or principal underwriter's more detailed policies and procedures set forth in compliance manuals or codes of procedures are separate requirements applying to the Covered Officers and others, and are not part of this Code. - ---------- (4) The chief compliance officer is authorized to consult, as appropriate, with the partners of the Company's investment adviser, the Audit Committee of the Company, counsel to such Company and counsel to the members of the Board who are not "interested persons" (as that term is defined in the 1940 Act), and is encouraged to do so. (5) Item 2 of Form N-CSR defines "waiver" as "the approval by the registrant of a material departure from a provision of the code of ethics" and "implicit waiver," which must also be disclosed, as "the registrant's failure to take action within a reasonable period of time regarding a material departure from a provision of the code of ethics that has been made known to an executive officer" of the registrant. 4 VI. AMENDMENTS. Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board. VII. CONFIDENTIALITY. All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board and its counsel. VIII. INTERNAL USE. The Code is intended solely for the internal use by the Company and does not constitute an admission, by or on behalf of the Company, as to any fact, circumstance, or legal conclusion. ADOPTED ON SEPTEMBER 18, 2003 5 EXHIBIT A PERSONS COVERED BY THIS CODE OF ETHICS Wayne M. Grzecki President and Chief Executive Officer Nicole M. Tremblay Chief Financial Officer, Treasurer and Secretary Susan K. Arnold Assistant Treasurer 6 EX-99.CERT 3 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: January 4, 2008 /s/ Wayne M. Grzecki ----------------------------------- 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: January 4, 2008 /s/ Nicole M. Tremblay --------------------------------- Nicole M. Tremblay, Treasurer EX-99.906 CERT 4 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 October 31, 2007 (the "Form N-CSR") fully complies with the requirements of section 13(a) or 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: January 4, 2008 Date: January 4, 2008 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-----