-----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, HX06nlJXUFwgHldw14RuI77C9uUX9E2THjLzftHq6oCxL36I5ONAasm1gupSbQH2 e6IGv6cm1iE7GJ1D/wfzSw== 0001111830-08-000687.txt : 20080626 0001111830-08-000687.hdr.sgml : 20080626 20080626163252 ACCESSION NUMBER: 0001111830-08-000687 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080430 FILED AS OF DATE: 20080626 DATE AS OF CHANGE: 20080626 EFFECTIVENESS DATE: 20080626 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEW CENTURY PORTFOLIOS CENTRAL INDEX KEY: 0000838802 IRS NUMBER: 000000000 STATE OF INCORPORATION: MA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-05646 FILM NUMBER: 08919706 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-CSRS 1 ncsrs-0408.txt NEW CENTURY PORTFOLIOS - N-CSRS ------------------------- OMB APPROVAL ------------------------- OMB Number: 3235-0570 Expires: August 31, 2010 Estimated average burden hours per response: 18.9 ------------------------- 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, 2008 ---------------------------- Date of reporting period: April 30, 2008 ---------------------------- 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 OMITTED] NEW CENTURY PORTFOLIOS NEW CENTURY CAPITAL NEW CENTURY BALANCED NEW CENTURY OPPORTUNISTIC NEW CENTURY INTERNATIONAL NEW CENTURY ALTERNATIVE STRATEGIES SEMI-ANNUAL REPORT Six Months Ended April 30, 2008 (Unaudited) 40 WILLIAM STREET, SUITE 100, WELLESLEY MA 02481 781-239-0445 888-639-0102 FAX 781-237-1635 CONTENTS - -------------------------------------------------------------------------------- PRESIDENT'S LETTER 1-2 PORTFOLIO INFORMATION 3-7 NEW CENTURY PORTFOLIOS Schedules of Investments 8-17 Statements of Assets and Liabilities 18 Statements of Operations 19 Statements of Changes in Net Assets 20-22 Financial Highlights 23-27 Notes to Financial Statements 28-36 About Your Portfolio's Expenses 37-39 LETTER TO SHAREHOLDERS JUNE 2008 ================================================================================ Dear Fellow Shareholders: I am pleased to present our Semi-Annual Report for the six-month period ended April 30, 2008. This Report presents important financial information for each of the New Century Portfolios. I also invite you to visit our website at www.newcenturyportfolios.com for additional information. During the six-month period ended April 30, 2008, volatility and uncertainty plagued the financial markets. The markets were weighed down by inflation (particularly in the energy and the food sectors), a decline in housing prices, continuing sub-prime concerns, and a fear that consumer discretionary spending would wither. On the plus side, however, corporate profits remain more resilient than anticipated, the Government has employed monetary and fiscal measures to stimulate the economy, and the decline of the dollar promotes the sale of U.S. goods and services overseas. During the period, the New Century Capital Portfolio increased its allocation to the large-cap and the international sectors and maintained an underweighted exposure to the small-cap sector. The New Century Capital Portfolio declined 9.74% as compared to the S&P 500(R) Composite Index which dropped 9.64% during the past six months. After the decline during the first five months of the period, we were pleased with April's positive market returns. During April, New Century Capital gained 6.05% as compared to the S&P 500(R) Composite Index which returned 4.87% during the month. Although the relative weighting to fixed income increased slightly, the New Century Balanced Portfolio maintained allocations in each of its market sectors during the period. During the period, the New Century Balanced Portfolio declined 4.97%, as compared to the S&P 500(R) Composite Index which fell 9.64% and the Lehman Brothers Intermediate Government/Credit Index which gained 4.45%. For the month of April, the New Century Balanced returned 3.95% as compared to the S&P 500(R) Composite Index which gained 4.87% and the Lehman Brothers Intermediate Government/Credit Index which dropped 0.74% during the month. The New Century Opportunistic Portfolio increased its allocation to the large-cap growth sector while maintaining an underweighted allocation to the mid-cap and small-cap sectors. The Portfolio also maintained a higher cash balance during the period. The New Century Opportunistic Portfolio declined 7.83% as compared to the Russell 3000 Growth Index which dropped 9.68% during the six-month period. For the month of April, the New Century Opportunistic Portfolio returned 6.50% as compared to the Russell 3000 Growth Index which gained 5.24% during the month. Over the six-month period, the New Century International Portfolio increased its exposure to Europe. In the Asia/Pacific sector, the Portfolio's exposure to Japan was also increased. The Portfolio also maintained a higher cash balance during the period. During the period, the New Century International Portfolio declined 10.87%. The international equity markets, as measured by the MSCI EAFE Index, fell 9.21%. For the month of April, the New Century International Portfolio returned 6.47% as compared to the MSCI EAFE Index which gained 5.43% during the month. The New Century Alternative Strategies Portfolio increased its allocation to the global macro category and decreased its allocation to the option hedged and long/short categories. The Portfolio maintained diversified positions in ten distinct investment categories. The 1 high-yield category was expanded to include other fixed income strategies to take advantage of volatility in the municipal bond market. The New Century Alternative Strategies Portfolio declined 2.37% during the period, as compared to the Lehman Brothers Intermediate Government/Credit Index, which gained 4.45% and the S&P 500(R) Composite Index which declined by 9.64%. For the month of April, the New Century Alternative Strategies Portfolio returned 2.62% as compared to the S&P 500(R) Composite Index which gained 4.87% and the Lehman Brothers Intermediate Government/Credit Index which dropped 0.74% during the month. 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 selection of New Century as part of your long-term investment strategy. Sincerely, /s/ Wayne M. Grzecki Wayne M. Grzecki President 2 NEW CENTURY CAPITAL PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2008 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- [PIE CHART OMITTED] Growth Funds - 36.8% Growth and Income Funds - 32.2% Foreign Stock Funds - 20.3% Small Company Funds - 10.1% Cash Equivalents - 0.6% TOP TEN LONG-TERM HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - -------------------- --------------- American Funds Growth Fund of America - Class A 7.5% Marsico 21st Century 7.4% iShares Dow Jones U.S. Energy Sector Index 5.5% iShares MSCI EAFE Index 4.8% iShares MSCI Emerging Markets Index 4.7% Goldman Sachs Growth Opportunities - Class A 4.7% Dodge & Cox International Stock 4.4% iShares S&P MidCap 400 Value Index 4.4% Fidelity Capital Appreciation 4.4% Powershares Dynamic Market 4.4% 3 NEW CENTURY BALANCED PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2008 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- [PIE CHART OMITTED] Growth and Income Funds - 30.3% Foreign Stock Funds - 15.7% Growth Funds - 12.9% Government Bond Funds - 9.3% Corporate Bond Funds - 9.0% Convertible Security Funds - 6.2% Worldwide Bond Funds - 5.0% High Quality Bond Funds - 4.2% High Yield Bond Funds - 3.4% Small Company Funds - 3.4% Cash Equivalents - 0.6% TOP TEN LONG-TERM HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - -------------------- --------------- American Century Target Maturities Trust Series 2015 - Investor Class 9.3% Loomis Sayles Bond - Institutional Class 9.0% iShares MSCI EAFE Index 5.8% First Eagle Global - Class A 5.6% Dodge & Cox Stock 5.5% iShares S&P 500 Index 5.3% iShares Dow Jones U.S. Energy Sector Index 4.9% Powershares Dynamic Market 4.5% Davis Appreciation & Income 3.8% Fidelity Select Utilities Growth 3.8% 4 NEW CENTURY OPPORTUNISTIC PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2008 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- [PIE CHART OMITTED] Sector Funds - 40.8% Large-Cap Funds - 33.6% Mid-Cap Funds - 15.7% Small-Cap Funds - 3.7% Cash Equivalents - 6.2% TOP TEN LONG-TERM HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - -------------------- --------------- iShares Dow Jones U.S. Energy Sector Index 9.5% John Hancock Large Cap Equity - Class I 9.4% Marsico 21st Century 8.7% iShares S&P GSSI Natural Resources Index 7.3% iShares Russell 1000 Growth Index 6.8% Amana Growth 6.7% iShares MSCI Emerging Markets Index 6.7% Leuthold Select Industries 6.4% Janus Orion 5.1% Technology Select Sector SPDR 4.7% 5 NEW CENTURY INTERNATIONAL PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2008 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- [PIE CHART OMITTED] Europe Funds - 27.4% Diversified Funds - 25.2% Asia/Pacific Funds - 21.6% Americas Funds - 14.4% Emerging Markets Funds - 6.3% Cash Equivalents - 5.1% TOP TEN LONG-TERM HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - -------------------- --------------- Janus Overseas 6.1% iShares MSCI Austria Index 4.5% iShares S&P Latin American 40 Index 4.5% iShares FTSE/Xinhua China 25 Index 4.3% Fidelity Canada 4.2% Ivy European Opportunities - Class A 4.0% AIM European Growth - Class A 3.9% iShares MSCI EAFE Index 3.7% Fidelity Japan 3.7% Oppenheimer International Small Company - Class A 3.6% 6 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO PORTFOLIO INFORMATION APRIL 30, 2008 (UNAUDITED) ================================================================================ ASSET ALLOCATION (% of Net Assets) - -------------------------------------------------------------------------------- [PIE CHART OMITTED] Long/Short Equity Funds - 17.1% Global Macro Funds - 15.3% Merger Arbitrage Funds - 14.2% Asset Allocation Funds - 10.7% Natural Resources Funds - 9.0% High Yield/Fixed Income Funds - 5.6% Real Estate Funds - 5.4% Deep Value/Distressed Securities Funds - 5.4% Option Hedged Funds - 4.9% Convertible Arbitrage Funds - 4.5% Structured Notes - 3.1% Cash Equivalents - 4.8% TOP TEN LONG-TERM HOLDINGS - -------------------------------------------------------------------------------- SECURITY DESCRIPTION % OF NET ASSETS - -------------------- --------------- First Eagle Global - Class A 5.8% Gateway 4.5% Calamos Market Neutral - A Shares 4.5% Merger 4.0% Hussman Strategic Growth 3.7% Ivy Asset Strategy - Class A 3.5% Diamond Hill Focus Long-Short - Class I 3.5% PIMCO Commodity Real Return Strategy - Class A 3.5% Gabelli ABC 3.4% BlackRock Global Allocation - Class A 3.0% 7 NEW CENTURY CAPITAL PORTFOLIO SCHEDULE OF INVESTMENTS APRIL 30, 2008 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 99.4% SHARES VALUE - -------------------------------------------------------------------------------- GROWTH FUNDS -- 36.8% Alger Capital Appreciation Institutional - Class I (a) .................................. 70,537 $ 1,390,998 American Funds AMCAP - Class A ................. 148,444 2,798,179 American Funds Growth Fund of America - Class A.. 294,589 9,700,818 Calamos Growth - Class A (a) ................... 63,285 3,483,855 Columbia Acorn Select - Class A (a) ............ 123,610 3,238,569 Fidelity Capital Appreciation .................. 229,094 5,656,324 Goldman Sachs Growth Opportunities - Class A (a). 270,764 6,021,786 iShares Russell 1000 Growth Index (b) .......... 235 13,503 Janus Orion .................................... 116,662 1,499,103 John Hancock Large Cap Equity - Class I ........ 132,407 4,182,728 Marsico 21st Century (a) ....................... 604,207 9,558,547 ------------ 47,544,410 ------------ GROWTH AND INCOME FUNDS -- 32.2% Amana Trust Income .............................. 143,474 4,401,771 Fidelity Select Utilities Growth ................ 69,352 4,213,135 iShares Dow Jones Select Dividend Index (b) ..... 65,100 3,870,846 iShares Dow Jones U.S. Energy Sector Index (b) .. 49,400 7,050,862 iShares Russell 1000 Value Index (b) ............ 28,800 2,203,488 iShares S&P 500 Index (b) ....................... 17,350 2,404,536 iShares S&P GSSI Natural Resources Index (b) .... 10,600 1,478,276 iShares S&P MidCap 400 Value Index (b) .......... 73,000 5,686,700 Powershares Dynamic Market (b) .................. 116,200 5,639,186 Schwab Fundamental U.S. Large Company Index - Institutional Class ................... 46,793 443,134 Vanguard 500 Index - Investor Shares ............ 33,351 4,257,911 ------------ 41,649,845 ------------ FOREIGN STOCK FUNDS -- 20.3% Dodge & Cox International Stock ................. 129,411 5,714,806 First Eagle Global - Class A .................... 58,958 2,682,598 iShares MSCI EAFE Index (b) ..................... 82,200 6,231,582 iShares MSCI Emerging Markets Index (b) ......... 41,400 6,071,724 Janus Overseas .................................. 68,707 3,787,793 Oppenheimer International Small Company - Class A 34,416 793,633 Phoenix Foreign Opportunity - Class I ........... 37,594 1,013,902 ------------ 26,296,038 ------------ SMALL COMPANY FUNDS -- 10.1% Buffalo Small Cap (a) ........................... 56,237 1,254,077 iShares S&P SmallCap 600 Growth Index (b) ....... 21,700 2,809,716 iShares S&P SmallCap 600 Value Index (b) ........ 22,100 1,484,457 Royce Opportunity - Investor Class .............. 333,065 3,443,891 William Blair Small Cap Growth - Class I (a) .... 195,364 4,133,897 ------------ 13,126,038 ------------ TOTAL INVESTMENT COMPANIES (Cost $99,288,837)....... $128,616,331 ------------ See accompanying notes to financial statements. 8 NEW CENTURY CAPITAL PORTFOLIO SCHEDULE OF INVESTMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ MONEY MARKET SECURITIES -- 0.7% SHARES VALUE - -------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 2.522%(c) (Cost $864,800)............................... 864,800 $ 864,800 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $100,153,637) $129,481,131 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)..... (149,616) ------------ NET ASSETS -- 100.0%................................ $129,331,515 ============ (a) Non-income producing security. (b) Exchange-traded fund. (c) Variable rate security. The coupon rate shown is the effective interest rate at April 30, 2008. See accompanying notes to financial statements. 9 NEW CENTURY BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS APRIL 30, 2008 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 99.4% SHARES VALUE - -------------------------------------------------------------------------------- GROWTH AND INCOME FUNDS -- 30.3% Dodge & Cox Stock ............................... 38,196 $ 4,751,247 Fidelity Select Utilities Growth ................ 53,826 3,269,960 iShares Dow Jones Select Dividend Index (b) ..... 22,600 1,343,796 iShares Dow Jones U.S. Energy Sector Index (b).. 29,800 4,253,354 iShares Russell 1000 Value Index (b) ............ 20,300 1,553,153 iShares S&P 500 Index (b) ....................... 33,400 4,628,906 iShares S&P GSSI Natural Resources Index (b) .... 10,600 1,478,276 iShares S&P MidCap 400 Value Index (b) .......... 9,000 701,100 Powershares Dynamic Market (b) .................. 81,000 3,930,930 Schwab Fundamental U.S. Large Company Index - Institutional Class ........................... 46,793 443,134 ------------ 26,353,856 ------------ FOREIGN STOCK FUNDS -- 15.7% Dodge & Cox International Stock ................. 49,420 2,182,401 First Eagle Global - Class A .................... 106,356 4,839,189 iShares MSCI EAFE Index (b) ..................... 66,800 5,064,108 Phoenix Foreign Opportunity - Class I ........... 56,391 1,520,853 ------------ 13,606,551 ------------ GROWTH FUNDS -- 12.9% American Funds AMCAP - Class A .................. 162,837 3,069,470 Columbia Acorn Select - Class A (a) ............. 31,829 833,923 iShares Russell 1000 Growth Index (b) ........... 19,600 1,126,216 John Hancock Large Cap Equity - Class I ......... 24,907 786,799 Marsico 21st Century (a) ........................ 69,142 1,093,826 S&P MidCap 400 Depositary Receipts (b) .......... 17,580 2,676,555 Wells Fargo Advantage Endeavor Select - Class A (a) 137,289 1,570,582 ------------ 11,157,371 ------------ GOVERNMENT BOND FUNDS -- 9.3% American Century Target Maturities Trust Series 2015 - Investor Class ......................... 90,573 8,102,693 ------------ CORPORATE BOND FUNDS -- 9.0% Loomis Sayles Bond - Institutional Class ........ 540,985 7,806,410 ------------ CONVERTIBLE SECURITY FUNDS -- 6.2% Davis Appreciation & Income ..................... 120,487 3,310,996 Franklin Convertible Securities - Class A ....... 135,796 2,070,894 ------------ 5,381,890 ------------ WORLDWIDE BOND FUNDS -- 5.0% Loomis Sayles Global Bond - Institutional Class . 79,391 1,299,636 Templeton Global Bond - Class A ................. 257,831 3,057,877 ------------ 4,357,513 ------------ HIGH QUALITY BOND FUNDS -- 4.2% Calvert Social Investment - Class I ............. 66,202 1,036,726 Dodge & Cox Income .............................. 210,621 2,645,405 ------------ 3,682,131 ------------ See accompanying notes to financial statements. 10 NEW CENTURY BALANCED PORTFOLIO SCHEDULE OF INVESTMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 99.4% (CONTINUED) SHARES VALUE - -------------------------------------------------------------------------------- HIGH YIELD BOND FUNDS -- 3.4% Loomis Sayles Institutional High Income ......... 376,807 $ 2,965,473 ------------ SMALL COMPANY FUNDS -- 3.4% iShares S&P SmallCap 600 Growth Index (b) ....... 15,400 1,993,992 Royce Opportunity - Investor Class .............. 89,080 921,083 ------------ 2,915,075 ------------ TOTAL INVESTMENT COMPANIES (Cost $74,182,266)....... $ 86,328,963 ------------ ================================================================================ MONEY MARKET SECURITIES -- 0.7% SHARES VALUE - -------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 2.522%(c) (Cost $625,197) ............................... 625,197 $ 625,197 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $74,807,463) .............................. $ 86,954,160 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)..... (81,986) ------------ NET ASSETS -- 100.0%................................ $ 86,872,174 ============ (a) Non-income producing security. (b) Exchange-traded fund. (c) Variable rate security. The coupon rate shown is the effective interest rate at April 30, 2008. See accompanying notes to financial statements. 11 NEW CENTURY OPPORTUNISTIC PORTFOLIO SCHEDULE OF INVESTMENTS APRIL 30, 2008 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 93.8% SHARES VALUE - -------------------------------------------------------------------------------- SECTOR FUNDS -- 40.8% Alpine International Real Estate Equity - Class Y 9,849 $ 354,765 iShares Dow Jones U.S. Energy Sector Index (b) .. 10,500 1,498,665 iShares MSCI Emerging Markets Index (b) ......... 7,200 1,055,952 iShares S&P GSSI Natural Resources Index (b) .... 8,300 1,157,518 iShares S&P GSTI Networking Index (b) ........... 23,900 720,346 ProFunds Oil & Gas UltraSector - Investor Class.. 8,281 510,933 Technology Select Sector SPDR (b) ............... 30,800 740,740 T. Rowe Price Emerging Europe & Mediterranean (a) 11,241 387,477 ------------ 6,426,396 ------------ LARGE-CAP FUNDS -- 33.6% Amana Growth (a) ................................ 47,605 1,060,162 iShares Russell 1000 Growth Index (b) ........... 18,600 1,068,756 iShares S&P 500 Growth Index (b) ................ 4,800 318,480 John Hancock Large Cap Equity - Class I ......... 46,744 1,476,631 Marsico 21st Century (a) ........................ 86,297 1,365,214 ------------ 5,289,243 ------------ MID-CAP FUNDS -- 15.7% Janus Orion ..................................... 62,885 808,070 Leuthold Select Industries ...................... 64,321 1,016,266 S&P MidCap 400 Depositary Receipts (b) .......... 4,302 654,980 ------------ 2,479,316 ------------ SMALL-CAP FUNDS -- 3.7% iShares S&P SmallCap 600 Growth Index (b) ....... 4,500 582,660 ------------ TOTAL INVESTMENT COMPANIES (Cost $13,077,165)....... $ 14,777,615 ------------ ================================================================================ MONEY MARKET SECURITIES -- 6.3% SHARES VALUE - -------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 2.522%(c) (Cost $993,584)................................ 993,584 $ 993,584 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $14,070,749) $ 15,771,199 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)..... (12,820) ------------ NET ASSETS -- 100.0%................................ $ 15,758,379 ============ (a) Non-income producing security. (b) Exchange-traded fund. (c) Variable rate security. The coupon rate shown is the effective interest rate at April 30, 2008. See accompanying notes to financial statements. 12 NEW CENTURY INTERNATIONAL PORTFOLIO SCHEDULE OF INVESTMENTS APRIL 30, 2008 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 94.9% SHARES VALUE - -------------------------------------------------------------------------------- EUROPE FUNDS -- 27.4% AIM European Growth - Class A ................... 133,819 $ 5,339,384 iShares MSCI Austria Index (b) .................. 166,200 6,166,020 iShares MSCI Belgium Index (b) .................. 110,600 2,739,562 iShares MSCI EMU Index (b) ...................... 25,800 2,919,012 iShares MSCI France Index (b) ................... 10,000 364,600 iShares MSCI Germany Index (b) .................. 143,200 4,679,776 iShares MSCI Spain Index (b) .................... 53,200 3,339,896 iShares MSCI Sweden Index (b) ................... 76,000 2,386,400 iShares MSCI Switzerland Index (b) .............. 47,500 1,226,925 iShares MSCI United Kingdom Index (b) ........... 129,746 2,963,399 Ivy European Opportunities - Class A ............ 149,793 5,495,918 ------------ 37,620,892 ------------ DIVERSIFIED FUNDS -- 25.2% AllianceBernstein International Growth - Class A. 107,900 2,148,280 Alpine International Real Estate Equity - Class Y 38,030 1,369,850 Dodge & Cox International Stock ................. 78,034 3,445,977 iShares MSCI EAFE Index (b) ..................... 67,800 5,139,918 iShares S&P Global Energy Sector Index (b) ...... 30,800 4,494,336 Janus Overseas .................................. 153,156 8,443,486 Oakmark International - Class I ................. 142,969 2,803,627 Oppenheimer International Small Company - Class A 213,409 4,921,210 Schwab Fundamental International Large Company Index - Institutional Class ................... 192,490 1,942,223 ------------ 34,708,907 ------------ ASIA/PACIFIC FUNDS -- 21.6% Eaton Vance Greater India - Class A (a) ......... 178,342 4,804,530 Fidelity Japan .................................. 357,721 5,090,376 iShares FTSE/Xinhua China 25 Index (b) .......... 37,100 5,889,996 iShares MSCI Australia Index (b) ................ 168,100 4,669,818 iShares MSCI Japan Index (b) .................... 143,800 1,909,664 iShares MSCI Pacific Ex-Japan Index (b) ......... 21,600 3,155,760 Matthews Pacific Tiger .......................... 122,814 3,215,282 ProFunds UltraJapan - Investor Class ............ 35,386 989,738 ------------ 29,725,164 ------------ AMERICAS FUNDS -- 14.4% Fidelity Canada ................................. 94,584 5,762,051 iShares MSCI Canada Index (b) ................... 151,000 4,901,460 iShares MSCI Mexico Index (b) ................... 51,800 3,026,674 iShares S&P Latin America 40 Index (b) .......... 22,200 6,138,300 ------------ 19,828,485 ------------ See accompanying notes to financial statements. 13 NEW CENTURY INTERNATIONAL PORTFOLIO SCHEDULE OF INVESTMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 94.9% (CONTINUED) SHARES VALUE - -------------------------------------------------------------------------------- EMERGING MARKETS FUNDS -- 6.3% iShares MSCI Emerging Markets Index (b) ......... 29,000 $ 4,253,140 Oppenheimer Developing Markets - Class A ........ 35,820 1,694,277 T. Rowe Price Emerging Europe & Mediterranean (a) 79,542 2,741,803 ------------ 8,689,220 ------------ TOTAL INVESTMENT COMPANIES (Cost $92,521,820)....... $130,572,668 ------------ ================================================================================ MONEY MARKET SECURITIES -- 5.2% SHARES VALUE - -------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 2.522% (c) (Cost $7,106,954) ............................. 7,106,954 $ 7,106,954 ------------ TOTAL INVESTMENTS AT VALUE -- 100.1% (Cost $99,628,774) $137,679,622 LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.1%)..... (128,521) ------------ NET ASSETS -- 100.0%................................ $137,551,101 ============ (a) Non-income producing security. (b) Exchange-traded fund. (c) Variable rate security. The coupon rate shown is the effective interest rate at April 30, 2008. See accompanying notes to financial statements. 14 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO SCHEDULE OF INVESTMENTS APRIL 30, 2008 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 92.1% SHARES VALUE - -------------------------------------------------------------------------------- LONG/SHORT EQUITY FUNDS -- 17.1% CGM Focus ....................................... 56,241 $ 3,064,006 Diamond Hill Focus Long-Short - Class I ......... 275,993 5,230,075 Hussman Strategic Growth ........................ 364,600 5,592,968 Prudent Bear .................................... 180,269 1,124,882 Schwab Hedged Equity Select ..................... 264,620 3,950,776 Templeton Global Long-Short - Class A ........... 194,307 2,557,074 TFS Market Neutral .............................. 102,943 1,512,226 Weitz Funds (The) - Partners III Opportunity .... 318,581 2,781,208 ------------ 25,813,215 ------------ GLOBAL MACRO FUNDS -- 15.3% BlackRock Global Allocation - Class A ........... 229,302 4,553,930 Dreyfus Premier Global Alpha - Class A .......... 39,285 496,566 First Eagle Global - Class A .................... 193,298 8,795,073 Franklin Mutual Discovery - Class Z ............. 128,625 3,993,806 Ivy Asset Strategy - Class A .................... 191,258 5,246,212 ------------ 23,085,587 ------------ MERGER ARBITRAGE FUNDS -- 14.2% Arbitrage - Class R (a) ......................... 346,720 4,396,414 Enterprise Mergers and Acquisitions - Class A .. 382,331 4,297,405 Gabelli ABC ..................................... 523,340 5,149,664 Gabelli Global Deal (c) ......................... 93,274 1,482,124 Merger .......................................... 413,691 6,101,938 ------------ 21,427,545 ------------ ASSET ALLOCATION FUNDS -- 10.7% Berwyn Income ................................... 170,167 2,023,291 FPA Crescent .................................... 145,649 3,765,027 Greenspring ..................................... 63,354 1,471,721 Leuthold Asset Allocation ....................... 224,862 2,554,430 Leuthold Core Investment ........................ 185,440 3,395,406 Oakmark Equity and Income - Class I ............. 105,490 2,909,410 ------------ 16,119,285 ------------ NATURAL RESOURCES FUNDS -- 9.0% BlackRock Real Asset Equity (c) ................. 85,000 1,475,600 DWS Global Commodities Stock (c) ................ 39,258 721,169 Permanent Portfolio ............................. 20,030 747,111 PIMCO Commodity Real Return Strategy - Class A.. 281,724 5,211,893 PowerShares Global Water Portfolio (b) .......... 73,000 1,504,530 RS Global Natural Resources - Class A ........... 38,551 1,548,203 T. Rowe Price New Era ........................... 9,337 605,898 Vanguard Precious Metals & Minerals ............. 50,852 1,829,640 ------------ 13,644,044 ------------ See accompanying notes to financial statements. 15 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO SCHEDULE OF INVESTMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ INVESTMENT COMPANIES -- 92.1% (CONTINUED) SHARES VALUE - -------------------------------------------------------------------------------- HIGH YIELD/FIXED INCOME FUNDS -- 5.6% Eaton Vance National Municipal - Class I ........ 154,581 $ 1,640,106 Fidelity Capital & Income ....................... 346,535 2,952,478 Oppenheimer International Bond - Class A ........ 241,347 1,600,128 Principal High Yield - Class A .................. 189,370 1,547,153 Western Asset Emerging Markets Debt (c) ......... 40,000 731,600 ------------ 8,471,465 ------------ REAL ESTATE FUNDS -- 5.4% Cohen & Steers International Realty - Class I ... 190,148 3,046,175 DJ Wilshire International Real Estate SPDR (b).. 13,500 748,845 JPMorgan U.S. Real Estate - Class A ............. 62,022 1,167,879 Third Avenue Real Estate Value .................. 119,711 3,260,916 ------------ 8,223,815 ------------ DEEP VALUE/DISTRESSED SECURITIES FUNDS -- 5.4% Fairholme ....................................... 121,295 3,927,548 Franklin Mutual Beacon - Class Z ................ 125,431 1,858,885 Third Avenue Value .............................. 40,588 2,287,936 ------------ 8,074,369 ------------ OPTION HEDGED FUNDS -- 4.9% Gateway ......................................... 238,519 6,816,871 Nuveen Equity Premium Income (c) ................ 40,000 633,200 ------------ 7,450,071 ------------ CONVERTIBLE ARBITRAGE FUNDS -- 4.5% Calamos Market Neutral - A Shares ............... 527,658 6,727,638 ------------ TOTAL INVESTMENT COMPANIES (Cost $127,141,042)...... $139,037,034 ------------ ================================================================================ STRUCTURED NOTES -- 3.1% UNITS VALUE - -------------------------------------------------------------------------------- Credit Suisse, Callable Yield Note, 14%, due 04/30/2009 ................................ 1,500,000 $ 1,500,000 Deutsche Bank, Buffered Underlying Security Linked Note, due 09/28/2009.................... 700,000 697,760 Merrill Lynch & Co., Inc., Medium-Term Note, Series C, due 06/10/2008....................... 100,000(d) 1,237,000 Morgan Stanley & Co., Inc., Bear Market Plus Note, due 07/20/2008 .......................... 50,000(d) 622,500 Morgan Stanley & Co., Inc., Bear Market Plus Note, due 11/20/2008 ..................... 60,000(d) 687,600 ------------ TOTAL STRUCTURED NOTES (Cost $4,300,000)............ $ 4,744,860 ------------ See accompanying notes to financial statements. 16 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO SCHEDULE OF INVESTMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ MONEY MARKET SECURITIES -- 4.7% SHARES VALUE - -------------------------------------------------------------------------------- The AIM STIT-STIC Portfolio - Institutional Class, 2.522%(e) (Cost $7,033,175).............................. 7,033,175 $ 7,033,175 ------------ TOTAL INVESTMENTS AT VALUE -- 99.9% (Cost $138,474,217) $150,815,069 OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.1%....... 164,109 ------------ NET ASSETS -- 100.0%................................ $150,979,178 ============ (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 April 30, 2008. See accompanying notes to financial statements. 17
NEW CENTURY PORTFOLIOS STATEMENTS OF ASSETS AND LIABILITIES APRIL 30, 2008 (UNAUDITED) ============================================================================================================================ 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 ................... $100,153,637 $ 74,807,463 $ 14,070,749 $ 99,628,774 $138,474,217 ============ ============ ============ ============ ============ At value (Note 1A) .................... $129,481,131 $ 86,954,160 $ 15,771,199 $137,679,622 $150,815,069 Dividends receivable ..................... 1,428 1,616 4,041 18,756 44,676 Receivable for capital shares sold ....... 10,867 1,625 -- 24,324 886,150 Other assets ............................. 10,611 7,681 1,174 10,659 10,241 ------------ ------------ ------------ ------------ ------------ TOTAL ASSETS .......................... 129,504,037 86,965,082 15,776,414 137,733,361 151,756,136 ------------ ------------ ------------ ------------ ------------ LIABILITIES Payable to Advisor (Note 2) .............. 100,764 71,905 9,329 118,480 91,189 Payable to Distributor (Note 3) .......... 11,448 7,051 2,590 24,909 38,684 Payable for investment securities purchased .................. -- -- -- -- 627,800 Payable for capital shares redeemed ...... 45,943 1,350 -- -- 4,010 Other accrued expenses and liabilities ... 14,367 12,602 6,116 38,871 15,275 ------------ ------------ ------------ ------------ ------------ TOTAL LIABILITIES ..................... 172,522 92,908 18,035 182,260 776,958 ------------ ------------ ------------ ------------ ------------ NET ASSETS ................................. $129,331,515 $ 86,872,174 $ 15,758,379 $137,551,101 $150,979,178 ============ ============ ============ ============ ============ Net assets consist of: Paid-in capital .......................... $ 96,065,418 $ 72,809,717 $ 13,794,307 $ 94,859,949 $135,057,649 Accumulated undistributed net investment income ..................... 1,461,472 14,406 119,989 421,141 14,640 Accumulated undistributed net realized gains on investments .................. 2,477,131 1,901,354 143,633 4,219,163 3,566,037 Net unrealized appreciation on investments 29,327,494 12,146,697 1,700,450 38,050,848 12,340,852 ------------ ------------ ------------ ------------ ------------ Net assets ................................. $129,331,515 $ 86,872,174 $ 15,758,379 $137,551,101 $150,979,178 ============ ============ ============ ============ ============ Shares of beneficial interest outstanding (unlimited number of shares authorized, no par value) ............................ 7,301,857 6,118,223 1,504,104 8,035,792 11,676,150 ============ ============ ============ ============ ============ Net asset value, offering price and redemption price per share (a) ........... $ 17.71 $ 14.20 $ 10.48 $ 17.12 $ 12.93 ============ ============ ============ ============ ============
(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. 18
NEW CENTURY PORTFOLIOS STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED APRIL 30, 2008 (UNAUDITED) ================================================================================================================================ NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY NEW CENTURY ALTERNATIVE CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - -------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME Dividends ................................ $ 1,175,887 $ 1,743,117 $ 76,449 $ 2,461,262 $ 2,169,612 Interest ................................. -- -- -- -- 583 ------------ ------------ ------------ ------------ ------------ Total Income .......................... 1,175,887 1,743,117 76,449 2,461,262 2,170,195 ------------ ------------ ------------ ------------ ------------ EXPENSES Investment advisory fees (Note 2) ........ 606,908 436,271 73,122 619,329 479,956 Distribution costs (Note 3) .............. 102,929 74,379 16,087 131,973 37,866 Accounting fees .......................... 21,400 19,360 15,731 21,602 21,397 Administration fees (Note 2) ............. 17,299 12,736 4,696 17,624 17,264 Legal and audit fees ..................... 14,461 9,849 1,682 15,547 15,656 Transfer agent fees ...................... 10,500 10,500 10,500 10,500 10,500 Custody fees ............................. 12,010 7,454 2,149 11,668 12,530 Trustees' fees and expenses (Note 2) ..... 9,848 6,684 1,155 10,125 10,423 Insurance expense ........................ 5,334 3,610 511 4,894 4,601 Postage and supplies ..................... 3,699 2,003 1,229 2,669 2,866 Other expenses ........................... 1,224 4,898 2,373 5,699 58,152 ------------ ------------ ------------ ------------ ------------ Total expenses ........................ 805,612 587,744 129,235 851,630 671,211 Less fees waived by the Advisor (Note 2) . -- -- (19,552) -- -- Plus previously waived investment advisory fees and expense reimbursements recouped by the Advisor (Note 2) ............... -- -- -- 18,797 -- ------------ ------------ ------------ ------------ ------------ Net expenses .......................... 805,612 587,744 109,683 870,427 671,211 ------------ ------------ ------------ ------------ ------------ NET INVESTMENT INCOME (LOSS) ............... 370,275 1,155,373 (33,234) 1,590,835 1,498,984 ------------ ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAINS/ (LOSSES) ON INVESTMENTS Net realized gains/(losses) on investments (95,210) 424,675 (30,997) -- 363,313 Capital gain distributions from regulated investment companies .................. 4,662,428 1,833,752 409,448 5,504,929 5,065,457 Net change in unrealized appreciation/ (depreciation) on investments ......... (18,969,815) (8,147,787) (1,496,933) (23,059,475) (9,484,948) ------------ ------------ ------------ ------------ ------------ NET REALIZED AND UNREALIZED LOSSES ON INVESTMENTS .................... (14,402,597) (5,889,360) (1,118,482) (17,554,546) (4,056,178) ------------ ------------ ------------ ------------ ------------ NET DECREASE IN NET ASSETS FROM OPERATIONS ................... $(14,032,322) $ (4,733,987) $ (1,151,716) $(15,963,711) $ (2,557,194) ============ ============ ============ ============ ============
See accompanying notes to financial statements. 19
NEW CENTURY PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS ============================================================================================================================= NEW CENTURY NEW CENTURY CAPITAL PORTFOLIO BALANCED PORTFOLIO ----------------------------------------------------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED APRIL 30, 2008 OCTOBER 31, APRIL 30, 2008 OCTOBER 31, (UNAUDITED) 2007 (UNAUDITED) 2007 - ----------------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net investment income (loss) ................... $ 370,275 $ (429,610) $ 1,155,373 $ 1,101,913 Net realized gains/(losses) from security transactions ....................... (95,210) 6,828,808 424,675 3,862,192 Capital gain distributions from regulated investment companies ........................ 4,662,428 3,213,012 1,833,752 1,512,727 Net change in unrealized appreciation/ (depreciation) on investments ............... (18,969,815) 14,826,015 (8,147,787) 3,805,605 -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets from operations ................................ (14,032,322) 24,438,225 (4,733,987) 10,282,437 -------------- -------------- -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (Note 1E) ........... -- -- (1,727,951) (1,085,845) From net realized gains on security transactions (Note 1E) ...................... (6,980,571) -- (4,963,213) -- -------------- -------------- -------------- -------------- Net decrease in net assets from distributions to shareholders .................. (6,980,571) -- (6,691,164) (1,085,845) -------------- -------------- -------------- -------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold ...................... 2,931,807 5,930,937 1,059,832 2,918,012 Proceeds from redemption fees collected (Note 1B) .................... 93 29 -- 56 Net asset value of shares issued in reinvestment of distributions to shareholders ............ 6,680,167 -- 6,441,127 1,045,536 Payments for shares redeemed ................... (3,495,417) (10,029,342) (4,255,568) (3,907,332) -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets from capital share transactions ..................... 6,116,650 (4,098,376) 3,245,391 56,272 -------------- -------------- -------------- -------------- TOTAL INCREASE/(DECREASE) IN NET ASSETS .................................. (14,896,243) 20,339,849 (8,179,760) 9,252,864 NET ASSETS Beginning of period ............................ 144,227,758 123,887,909 95,051,934 85,799,070 -------------- -------------- -------------- -------------- End of period .................................. $ 129,331,515 $ 144,227,758 $ 86,872,174 $ 95,051,934 ============== ============== ============== ============== ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME .............................. $ 1,461,472 $ -- $ 14,406 $ 334,483 ============== ============== ============== ============== CAPITAL SHARE ACTIVITY Sold ........................................... 163,149 313,592 72,816 189,069 Reinvested ..................................... 359,535 -- 444,216 70,406 Redeemed ....................................... (196,345) (527,053) (292,705) (253,201) -------------- -------------- -------------- -------------- Net increase/(decrease) in shares outstanding .. 326,339 (213,461) 224,327 6,274 Shares outstanding, beginning of period. ....... 6,975,518 7,188,979 5,893,896 5,887,622 -------------- -------------- -------------- -------------- Shares outstanding, end of period .............. 7,301,857 6,975,518 6,118,223 5,893,896 ============== ============== ============== ==============
See accompanying notes to financial statements. 20
NEW CENTURY PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS ============================================================================================================================= NEW CENTURY NEW CENTURY OPPORTUNISTIC PORTFOLIO INTERNATIONAL PORTFOLIO ----------------------------------------------------------------------- SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED APRIL 30, 2008 OCTOBER 31, APRIL 30, 2008 OCTOBER 31, (UNAUDITED) 2007 (UNAUDITED) 2007 - ----------------------------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net investment income/(loss) ................... $ (33,234) $ (64,268) $ 1,590,835 $ 134,961 Net realized gains/(losses) from security transactions ....................... (30,997) 766,321 -- 2,068,729 Capital gain distributions from regulated investment companies ........................ 409,448 38,924 5,504,929 2,227,454 Net change in unrealized appreciation/ (depreciation) on investments ............... (1,496,933) 2,126,149 (23,059,475) 35,884,958 -------------- -------------- -------------- -------------- Net increase/(decrease) in net assets from operations ................................ (1,151,716) 2,867,126 (15,963,711) 40,316,102 -------------- -------------- -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (Note 1E) ........... -- -- (1,842,261) (383,067) From net realized gains on security transactions (Note 1E) ...................... (529,288) -- (4,059,246) (4,023,814) -------------- -------------- -------------- -------------- Net decrease in net assets from distributions to shareholders .................. (529,288) -- (5,901,507) (4,406,881) -------------- -------------- -------------- -------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold ...................... 2,197,541 1,357,331 10,817,439 13,917,872 Proceeds from redemption fees collected (Note 1B) .................... 29 -- 1,513 201 Net asset value of shares issued in reinvestment of distributions to shareholders ............ 529,288 -- 4,112,509 3,515,727 Payments for shares redeemed ................... (222,638) (1,238,154) (2,931,543) (8,871,897) -------------- -------------- -------------- -------------- Net increase in net assets from capital share transactions ............................. 2,504,220 119,177 11,999,918 8,561,903 -------------- -------------- -------------- -------------- TOTAL INCREASE/(DECREASE) IN NET ASSETS .................................. 823,216 2,986,303 (9,865,300) 44,471,124 NET ASSETS Beginning of period ............................ 14,935,163 11,948,860 147,416,401 102,945,277 -------------- -------------- -------------- -------------- End of period .................................. $ 15,758,379 $ 14,935,163 $ 137,551,101 $ 147,416,401 ============== ============== ============== ============== ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME .............................. $ 119,989 $ -- $ 421,141 $ -- ============== ============== ============== ============== CAPITAL SHARE ACTIVITY Sold ........................................... 209,957 125,648 633,017 822,999 Reinvested ..................................... 48,470 -- 231,040 223,363 Redeemed ....................................... (22,308) (122,107) (175,411) (537,029) -------------- -------------- -------------- -------------- Net increase in shares outstanding ............. 236,119 3,541 688,646 509,333 Shares outstanding, beginning of period. ....... 1,267,985 1,264,444 7,347,146 6,837,813 -------------- -------------- -------------- -------------- Shares outstanding, end of period .............. 1,504,104 1,267,985 8,035,792 7,347,146 ============== ============== ============== ==============
See accompanying notes to financial statements. 21
NEW CENTURY PORTFOLIOS STATEMENTS OF CHANGES IN NET ASSETS =========================================================================================================== NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO --------------------------------- SIX MONTHS YEAR ENDED ENDED APRIL 30, 2008 OCTOBER 31, (UNAUDITED) 2007 - ----------------------------------------------------------------------------------------------------------- FROM OPERATIONS Net investment income ............................................. $ 1,498,984 $ 1,200,031 Net realized gains from security transactions ..................... 363,313 744,343 Capital gain distributions from regulated investment companies .... 5,065,457 3,137,271 Net change in unrealized appreciation/(depreciation) on investments (9,484,948) 7,720,895 -------------- -------------- Net increase/(decrease) in net assets from operations ................ (2,557,194) 12,802,540 -------------- -------------- DISTRIBUTIONS TO SHAREHOLDERS From net investment income (Note 1E) .............................. (3,290,139) (2,420,775) From net realized gains on security transactions (Note 1E) ........ (2,850,232) (2,247,380) -------------- -------------- Net decrease in net assets from distributions to shareholders ........ (6,140,371) (4,668,155) -------------- -------------- FROM CAPITAL SHARE TRANSACTIONS Proceeds from shares sold ......................................... 32,751,106 25,078,251 Proceeds from redemption fees collected (Note 1B) ................. 17,188 29 Net asset value of shares issued in reinvestment of distributions to shareholders .................................. 6,072,156 4,619,812 Payments for shares redeemed ...................................... (7,280,649) (7,526,721) -------------- -------------- Net increase in net assets from capital share transactions ........... 31,559,801 22,171,371 -------------- -------------- TOTAL INCREASE IN NET ASSETS ......................................... 22,862,236 30,305,756 NET ASSETS Beginning of period ............................................... 128,116,942 97,811,186 -------------- -------------- End of period ..................................................... $ 150,979,178 $ 128,116,942 ============== ============== ACCUMULATED UNDISTRIBUTED NET INVESTMENT INCOME (LOSS) .......................................... $ 14,640 $ (45,582) ============== ============== CAPITAL SHARE ACTIVITY Sold .............................................................. 2,574,469 1,895,144 Reinvested ........................................................ 469,255 362,623 Redeemed .......................................................... (564,657) (568,214) -------------- -------------- Net increase in shares outstanding ................................ 2,479,067 1,689,553 Shares outstanding, beginning of period ........................... 9,197,083 7,507,530 -------------- -------------- Shares outstanding, end of period ................................. 11,676,150 9,197,083 ============== ==============
See accompanying notes to financial statements. 22
NEW CENTURY CAPITAL PORTFOLIO FINANCIAL HIGHLIGHTS ================================================================================================================================ SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD - -------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEARS ENDED OCTOBER 31, APRIL 30, 2008 ----------------------------------------------------------------- (UNAUDITED) 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ....... $ 20.68 $ 17.23 $ 15.04 $ 13.38 $ 12.36 $ 10.09 --------- --------- --------- --------- --------- --------- Income/(loss) from investment operations: Net investment income/(loss) ............ 0.05 (0.06) (0.08) (0.09) (0.12) (0.06) Net realized and unrealized gains/ (losses) on investments ............... (2.02) 3.51 2.27 1.75 1.14 2.33 --------- --------- --------- --------- --------- --------- Total from investment operations ........... (1.97) 3.45 2.19 1.66 1.02 2.27 --------- --------- --------- --------- --------- --------- Less distributions: Distributions from net investment income ..................... -- -- -- -- -- -- Distributions from net realized gains .. (1.00) -- -- -- -- -- --------- --------- --------- --------- --------- --------- Total distributions ........................ (1.00) -- -- -- -- -- --------- --------- --------- --------- --------- --------- Proceeds from redemption fees collected .... 0.00(a) 0.00(a) -- -- -- -- --------- --------- --------- --------- --------- --------- Net asset value, end of period ............. $ 17.71 $ 20.68 $ 17.23 $ 15.04 $ 13.38 $ 12.36 ========= ========= ========= ========= ========= ========= TOTAL RETURN (b) ............................. (9.74%)(c) 20.02% 14.56% 12.41% 8.25% 22.50% ========= ========= ========= ========= ========= ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) .......... $ 129,332 $ 144,228 $ 123,888 $ 110,578 $ 103,260 $ 95,396 ========= ========= ========= ========= ========= ========= Ratio of expenses to average net assets (d) 1.25%(f) 1.25% 1.27% 1.35% 1.41% 1.45% Ratio of net investment income/(loss) to average net assets (e) ............... 0.58%(f) (0.32%) (0.47%) (0.57%) (0.91%) (0.59%) Portfolio turnover ......................... 2%(c) 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 periods covered, which assumes 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) Not annualized. (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/(loss) by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. (f) Annualized. See accompanying notes to financial statements. 23
NEW CENTURY BALANCED PORTFOLIO FINANCIAL HIGHLIGHTS ================================================================================================================================ SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD - -------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEARS ENDED OCTOBER 31, APRIL 30, 2008 ----------------------------------------------------------------- (UNAUDITED) 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ....... $ 16.13 $ 14.57 $ 13.15 $ 12.30 $ 11.52 $ 9.89 --------- --------- --------- --------- --------- --------- Income/(loss) from investment operations: Net investment income ................... 0.20 0.19 0.17 0.15 0.11 0.16 Net realized and unrealized gains/ (losses) on investments ............... (0.98) 1.56 1.44 0.89 0.78 1.67 --------- --------- --------- --------- --------- --------- Total from investment operations ........... (0.78) 1.75 1.61 1.04 0.89 1.83 --------- --------- --------- --------- --------- --------- Less distributions: Distributions from net investment income ..................... (0.30) (0.19) (0.19) (0.19) (0.11) (0.20) Distributions from net realized gains .. (0.85) -- -- -- -- -- --------- --------- --------- --------- --------- --------- Total distributions ........................ (1.15) (0.19) (0.19) (0.19) (0.11) (0.20) --------- --------- --------- --------- --------- --------- Proceeds from redemption fees collected .... -- 0.00(a) -- -- -- -- --------- --------- --------- --------- --------- --------- Net asset value, end of period ............. $ 14.20 $ 16.13 $ 14.57 $ 13.15 $ 12.30 $ 11.52 ========= ========= ========= ========= ========= ========= TOTAL RETURN (b) ............................. (4.97%)(c) 12.09% 12.37% 8.51% 7.75% 18.84% ========= ========= ========= ========= ========= ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) .......... $ 86,872 $ 95,052 $ 85,799 $ 77,128 $ 74,327 $ 70,441 ========= ========= ========= ========= ========= ========= Ratio of expenses to average net assets (g) 1.35%(f) 1.35% 1.38% 1.38% 1.42%(e) 1.45%(d) Ratio of net investment income to average net assets (h) ............... 2.65%(f) 1.21% 1.20% 1.12% 0.88%(e) 1.56%(d) Portfolio turnover ......................... 3%(c) 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 periods covered, which assumes 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) Not annualized. (d) 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). (e) 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). (f) Annualized. (g) 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. (h) 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. 24
NEW CENTURY OPPORTUNISTIC PORTFOLIO FINANCIAL HIGHLIGHTS ================================================================================================================================ SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD - -------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEARS ENDED OCTOBER 31, APRIL 30, 2008 ----------------------------------------------------------------- (UNAUDITED) 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ....... $ 11.78 $ 9.45 $ 8.72 $ 7.30 $ 6.95 $ 5.47 --------- --------- --------- --------- --------- --------- Income/(loss) from investment operations: Net investment loss ..................... (0.02) (0.05) (0.08) (0.06) (0.07) (0.06) Net realized and unrealized gains/ (losses) on investments ............... (0.89) 2.38 0.81 1.48 0.42 1.54 --------- --------- --------- --------- --------- --------- Total from investment operations ........... (0.91) 2.33 0.73 1.42 0.35 1.48 --------- --------- --------- --------- --------- --------- Less distributions: Distributions from net investment income ..................... -- -- -- -- -- -- Distributions from net realized gains ... (0.39) -- -- -- -- -- --------- --------- --------- --------- --------- --------- Total distributions ........................ (0.39) -- -- -- -- -- --------- --------- --------- --------- --------- --------- Proceeds from redemption fees collected .... 0.00(a) -- -- -- -- -- --------- --------- --------- --------- --------- --------- Net asset value, end of period ............. $ 10.48 $ 11.78 $ 9.45 $ 8.72 $ 7.30 $ 6.95 ========= ========= ========= ========= ========= ========= TOTAL RETURN (b) ............................. (7.83%)(c) 24.66% 8.37% 19.45% 5.04% 27.06% ========= ========= ========= ========= ========= ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) .......... $ 15,758 $ 14,935 $ 11,949 $ 6,891 $ 5,512 $ 4,866 ========= ========= ========= ========= ========= ========= Ratios of expenses to average net assets: Before expense reimbursement and waived fees (d) ................... 1.77%(f) 1.88% 2.00% 2.56% 2.71% 3.20% After expense reimbursement and waived fees (d) ................... 1.50%(f) 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 (e) ................... (0.72%)(f) (0.88%) (1.39%) (1.80%) (2.27%) (2.73%) After expense reimbursement and waived fees (e) .................. (0.45%)(f) (0.50%) (0.89%) (0.74%) (1.06%) (1.03%) Portfolio turnover ......................... 2%(c) 47% 49% 19% 68% 78%
(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 periods covered, which assumes 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) Not annualized. (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 loss by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. (f) Annualized. See accompanying notes to financial statements. 25
NEW CENTURY INTERNATIONAL PORTFOLIO FINANCIAL HIGHLIGHTS ================================================================================================================================ SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD - -------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEARS ENDED OCTOBER 31, APRIL 30, 2008 ----------------------------------------------------------------- (UNAUDITED) 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ....... $ 20.06 $ 15.06 $ 12.12 $ 10.07 $ 8.68 $ 6.52 --------- --------- --------- --------- --------- --------- Income/(loss) from investment operations: Net investment income/(loss) ............ 0.22 0.03 (0.06) (0.06) (0.05) (0.03) Net realized and unrealized gains/ (losses) on investments .............. (2.37) 5.61 3.12 2.42 1.44 2.19 --------- --------- --------- --------- --------- --------- Total from investment operations ........... (2.15) 5.64 3.06 2.36 1.39 2.16 --------- --------- --------- --------- --------- --------- Less distributions: Distributions from net investment income ..................... (0.25) (0.06) -- -- -- -- Distributions from net realized gains ... (0.54) (0.58) (0.12) (0.31) -- -- --------- --------- --------- --------- --------- --------- Total distributions ........................ (0.79) (0.64) (0.12) (0.31) -- -- --------- --------- --------- --------- --------- --------- Proceeds from redemption fees collected .... 0.00(a) 0.00(a) 0.00(a) 0.00(a) -- -- --------- --------- --------- --------- --------- --------- Net asset value, end of period ............. $ 17.12 $ 20.06 $ 15.06 $ 12.12 $ 10.07 $ 8.68 ========= ========= ========= ========= ========= ========= TOTAL RETURN (b) ............................ (10.87%)(c) 38.62% 25.35% 23.70% 16.01% 33.13% ========= ========= ========= ========= ========= ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) .......... $ 137,551 $ 147,416 $ 102,945 $ 45,014 $ 24,449 $ 15,288 ========= ========= ========= ========= ========= ========= Ratios of expenses to average net assets: Before expense reimbursement and waived fees (d) ................... 1.32%(f) 1.35% 1.50% 1.55% 1.74% 2.11% After expense reimbursement and waived fees (d) ................... 1.32%(f)(g) 1.35%(g) 1.50%(g) 1.50% 1.50% 1.50% Ratios of net investment income/(loss) to average net assets: Before expense reimbursement and waived fees (e) ................... 2.41%(f) 0.11% (0.46%) (0.72%) (0.88%) (1.16%) After expense reimbursement and waived fees (e) ................... 2.41%(f)(g) 0.11%(g) (0.46%)(g) (0.67%) (0.64%) (0.55%) Portfolio turnover ......................... 0%(c) 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 periods covered, which assumes 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) Not annualized. (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/(loss) by the Portfolio is affected by the timing of the declaration of dividends by the underlying investment companies in which the Portfolio invests. (f) Annualized. (g) Absent the recoupment of fees previously waived and reimbursed by the Advisor, the ratios of expenses to average net assets would have been 1.29%(f), 1.32% and 1.41% and the ratios of net investment income/(loss) to average net assets would have been 2.44%(f), 0.14% and (0.37%) for the periods ended April 30, 2008, October 31, 2007 and 2006, respectively (Note 2). See accompanying notes to financial statements. 26
NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO FINANCIAL HIGHLIGHTS ================================================================================================================================ SELECTED PER SHARE DATA AND RATIOS FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD - -------------------------------------------------------------------------------------------------------------------------------- SIX MONTHS ENDED YEARS ENDED OCTOBER 31, APRIL 30, 2008 ----------------------------------------------------------------- (UNAUDITED) 2007 2006 2005 2004 2003 - -------------------------------------------------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE Net asset value, beginning of period ....... $ 13.93 $ 13.03 $ 11.99 $ 11.46 $ 10.67 $ 9.12 --------- --------- --------- --------- --------- --------- Income/(loss) from investment operations: Net investment income ................... 0.21 0.18 0.21 0.15 0.14 0.11 Net realized and unrealized gains/ (losses) on investments ............... (0.54) 1.34 1.23 0.87 0.83 1.54 --------- --------- --------- --------- --------- --------- Total from investment operations ........... (0.33) 1.52 1.44 1.02 0.97 1.65 --------- --------- --------- --------- --------- --------- Less distributions: Distributions from net investment income ..................... (0.36) (0.32) (0.33) (0.24) (0.18) (0.10) Distributions from net realized gains .. (0.31) (0.30) (0.07) (0.25) -- -- --------- --------- --------- --------- --------- --------- Total distributions ........................ (0.67) (0.62) (0.40) (0.49) (0.18) (0.10) --------- --------- --------- --------- --------- --------- Proceeds from redemption fees collected .... 0.00(a) 0.00(a) -- 0.00(a) -- -- --------- --------- --------- --------- --------- --------- Net asset value, end of period ............. $ 12.93 $ 13.93 $ 13.03 $ 11.99 $ 11.46 $ 10.67 ========= ========= ========= ========= ========= ========= TOTAL RETURN (b) ............................. (2.37%)(c) 12.09% 12.32% 9.12% 9.12% 18.20% ========= ========= ========= ========= ========= ========= RATIOS/SUPPLEMENTAL DATA Net assets, end of period (000's) .......... $ 150,979 $ 128,117 $ 97,811 $ 76,560 $ 51,635 $ 33,734 ========= ========= ========= ========= ========= ========= Ratios of expenses to average net assets (f) 1.05%(e) 1.06% 1.08% 1.06% 1.12% 1.40%(d) Ratios of net investment income to average net assets (g) ............... 2.34%(e) 1.07% 1.43% 1.06% 1.04% 1.06%(d) Portfolio turnover ......................... 8%(c) 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 periods covered, which assumes 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) Not annualized. (d) Absent the recoupment of fees previously waived and reimbursed by the Advisor, the ratio of expenses to average net assets would have been 1.34% 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). (e) Annualized. (f) The ratios of expenses to average net assets do not reflect the Portfolio's proportionate share of expenses of the underlying investment companies in which the Portfolio invests. (g) 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. 27 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS APRIL 30, 2008 (UNAUDITED) ================================================================================ (1) SIGNIFICANT ACCOUNTING POLICIES New Century Portfolios ("New Century") is organized as a Massachusetts business trust which is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company and currently offers shares of five series: New Century Capital Portfolio, New Century Balanced Portfolio, New Century Opportunistic 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 28 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ 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 in shares 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. 29 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ 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 periods ended April 30, 2008 and October 31, 2007, proceeds from redemption fees totaled $93 and $29, respectively for New Century Capital Portfolio, $0 and $56, respectively for New Century Balanced Portfolio, $29 and $0 respectively for New Century Opportunistic Portfolio, $1,513 and $201, respectively for New Century International Portfolio and $17,188 and $29, respectively, for New Century Alternative Strategies 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 periods ended April 30, 2008 and October 31, 2007 was as follows: 30 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================
- ----------------------------------------------------------------------------------------- ORDINARY LONG-TERM TOTAL PERIOD ENDED INCOME CAPITAL GAINS DISTRIBUTIONS - ----------------------------------------------------------------------------------------- NEW CENTURY CAPITAL PORTFOLIO April 30, 2008 .......................... $ -- $6,980,571 $6,980,571 October 31, 2007 ........................ $ -- $ -- $ -- NEW CENTURY BALANCED PORTFOLIO April 30, 2008 .......................... $1,727,951 $4,963,213 $6,691,164 October 31, 2007 ........................ $1,085,845 $ -- $1,085,845 NEW CENTURY OPPORTUNISTIC PORTFOLIO April 30, 2008 .......................... $ -- $ 529,288 $ 529,288 October 31, 2007 ........................ $ -- $ -- $ -- NEW CENTURY INTERNATIONAL PORTFOLIO April 30, 2008 .......................... $1,842,261 $4,059,246 $5,901,507 October 31, 2007 ........................ $ 383,067 $4,023,814 $4,406,881 NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO April 30, 2008 .......................... $3,290,139 $2,850,232 $6,140,371 October 31, 2007 ........................ $2,646,346 $2,021,809 $4,668,155 - -----------------------------------------------------------------------------------------
The differences between the book and tax basis of distributions for the periods ended April 30, 2008 and October 31, 2007 are permanent in nature and are primarily due to differing treatments of net short-term gains. 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. 31 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ 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. 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 six months ended April 30, 2008, the Advisor waived $19,552 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 six months ended April 30, 2008, the Advisor received $18,797 in recouped fees from New Century International Portfolio. During the six months ended April 30, 2008, 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 April 30, 2008, the amounts available for reimbursement that have been paid and/or waived by the Advisor on behalf of the following Portfolio is as follows: - -------------------------------------------------------------------------------- New Century Opportunistic Portfolio ............................ $ 186,422 - -------------------------------------------------------------------------------- As of April 30, 2008, the Advisor may recapture a portion of the above amounts no later than the dates as stated below:
- ------------------------------------------------------------------------------------------ OCTOBER 31, OCTOBER 31, OCTOBER 31, OCTOBER 31, 2008 2009 2010 2011 - ------------------------------------------------------------------------------------------ New Century Opportunistic Portfolio ... $62,153 $56,057 $48,660 $19,552 - ------------------------------------------------------------------------------------------
32 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ 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 based on actual expenses incurred in the overseeing of the Portfolios' affairs. All expenses incurred overseeing the Portfolios' affairs are reimbursed monthly. The Portfolios pay each Trustee who is not affiliated with the Advisor a $15,000 annual retainer, paid quarterly, and a per meeting fee of $2,500. The Portfolios will also pay each Trustee who is not affiliated with the Advisor a $2,500 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 six months ended April 30, 2008, the Distributor received $102,929, $74,379, $16,087, $131,973 and $37,866 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. During the six months ended April 30, 2008, the Distributor also received sales commissions and other compensation of $46,257, $24,437, $1,807, $34,287 and $122,133 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. 33 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ (4) INVESTMENT TRANSACTIONS For the six months ended April 30, 2008, 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 .......... $ 7,926,824 $ 4,054,973 $ 1,922,087 $ 9,598,496 $37,671,300 Proceeds from sales of investment securities $ 3,097,849 $ 2,720,923 $ 269,003 $ -- $10,272,392 - -----------------------------------------------------------------------------------------------------------------------
(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. The tax character of distributable earnings at April 30, 2008 was as follows:
- ------------------------------------------------------------------------------------------------------- NEW NEW NEW NEW NEW CENTURY CENTURY CENTURY CENTURY CENTURY ALTERNATIVE CAPITAL BALANCED OPPORTUNISTIC INTERNATIONAL STRATEGIES PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO - ------------------------------------------------------------------------------------------------------- Accumulated ordinary income $ 1,461,472 $ 14,406 $ 119,989 $ 421,141 $ 285,112 Unrealized appreciation .... 29,327,494 12,042,667 1,684,012 38,050,848 12,243,323 Other gains ................ 2,477,131 2,005,384 160,071 4,219,163 3,393,094 ----------- ----------- ----------- ----------- ----------- Total distributable earnings $33,266,097 $14,062,457 $ 1,964,072 $42,691,152 $15,921,529 =========== =========== =========== =========== =========== - -------------------------------------------------------------------------------------------------------
34 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ The following information is based upon the federal income tax cost of investment securities as of April 30, 2008:
- -------------------------------------------------------------------------------------------------------------------------- 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 $ 100,153,637 $ 74,911,493 $ 14,087,187 $ 99,628,774 $ 138,571,746 ============= ============= ============= ============= ============= Gross unrealized appreciation ... $ 31,454,914 $ 13,345,265 $ 2,112,992 $ 40,597,360 $ 14,823,810 Gross unrealized depreciation ... (2,127,420) (1,302,598) (428,980) (2,546,512) (2,580,487) ------------- ------------- ------------- ------------- ------------- Net unrealized appreciation ..... $ 29,327,494 $ 12,042,667 $ 1,684,012 $ 38,050,848 $ 12,243,323 ============= ============= ============= ============= ============= - --------------------------------------------------------------------------------------------------------------------------
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 certain structured notes for tax purposes. 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. The Portfolios have adopted FIN 48 with this Semi-Annual report. Based on management's analysis, the adoption of FIN 48 does not have a material impact on the financial statements. The statutes of limitations on the Portfolios' tax returns remain open for the years ended October 31, 2005 through October 31, 2007. 35 NEW CENTURY PORTFOLIOS NOTES TO FINANCIAL STATEMENTS (CONTINUED) APRIL 30, 2008 (UNAUDITED) ================================================================================ (6) CONTINGENCIES AND COMMITMENTS New Century indemnifies its officers and Trustees for certain liabilities that might arise from the 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 PRONOUNCEMENT In September 2006, the FASB issued Statement of 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 April 30, 2008, 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. 36 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 mutual fund's ongoing costs 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 (November 1, 2007) and held for the entire period (April 30, 2008). 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 mutual 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 Portfolios' proportionate shares of expenses of the underlying investment companies in which the Portfolios invest. 37 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 November 1, 2007 April 30, 2008 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $ 902.60 $5.91 Based on Hypothetical 5% Return (before expenses) $1,000.00 $1,018.65 $6.27 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Capital Portfolio's annualized expense ratio of 1.25% for the period, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). NEW CENTURY BALANCED PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid November 1, 2007 April 30, 2008 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $ 950.30 $6.55 Based on Hypothetical 5% Return (before expenses) $1,000.00 $1,018.15 $6.77 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Balanced Portfolio's annualized expense ratio of 1.35% for the period, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). NEW CENTURY OPPORTUNISTIC PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid November 1, 2007 April 30, 2008 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $ 921.70 $7.17 Based on Hypothetical 5% Return (before expenses) $1,000.00 $1,017.40 $7.52 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Opportunistic Portfolio's annualized expense ratio of 1.50% for the period, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). 38 NEW CENTURY PORTFOLIOS ABOUT YOUR PORTFOLIO'S EXPENSES (UNAUDITED) (CONTINUED) ================================================================================ NEW CENTURY INTERNATIONAL PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid November 1, 2007 April 30, 2008 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $ 891.30 $6.21 Based on Hypothetical 5% Return (before expenses) $1,000.00 $1,018.30 $6.62 - -------------------------------------------------------------------------------- * 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 182/366 (to reflect the one-half year period). NEW CENTURY ALTERNATIVE STRATEGIES PORTFOLIO - -------------------------------------------------------------------------------- Beginning Ending Account Value Account Value Expenses Paid November 1, 2007 April 30, 2008 During Period* - -------------------------------------------------------------------------------- Based on Actual Fund Return $1,000.00 $ 976.30 $5.16 Based on Hypothetical 5% Return (before expenses) $1,000.00 $1,019.64 $5.27 - -------------------------------------------------------------------------------- * Expenses are equal to the New Century Alternative Strategies Portfolio's annualized expense ratio of 1.05% for the period, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). 39 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 fees, expenses 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. Not required ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not required ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not required ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable [schedule filed with Item 1] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable ITEM 8. 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: Not required (a)(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto (a)(3) Any written solicitation to purchase securities under Rule 23c-1 under the Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons: Not applicable (b) Certifications required by Rule 30a-2(b) under the Act (17 CFR 270.30a-2(b)): Attached hereto Exhibit 99.CERT Certifications required by Rule 30a-2(a) under the Act Exhibit 99.906CERT Certifications required by Rule 30a-2(b) under the Act SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) New Century Portfolios ------------------------------------------------------------------- By (Signature and Title)* /s/ Wayne M. Grzecki ---------------------------------------------------- Wayne M. Grzecki, President Date June 26, 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 June 26, 2008 --------------------------- By (Signature and Title)* /s/ Nicole M. Tremblay ---------------------------------------------------- Nicole M. Tremblay, Treasurer Date June 26, 2008 --------------------------- * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 ex99cert.txt CERTIFICATIONS REQUIRED BY RULE 30A-2(A) EX-99.CERT CERTIFICATIONS -------------- I, Wayne M. Grzecki, certify that: 1. I have reviewed this report on Form N-CSR of New Century Portfolios; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the 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: June 26, 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: June 26, 2008 /s/ Nicole M. Tremblay -------------------------------------------- Nicole M. Tremblay, Treasurer EX-99.906 CERT 3 ex99906cert.txt CERTIFICATIONS REQUIRED BY RULE 30A-2(B) EX-99.906CERT CERTIFICATIONS -------------- Wayne M. Grzecki, Chief Executive Officer, and Nicole M. Tremblay, Chief Financial Officer, of New Century Portfolios (the "Registrant"), each certify to the best of his or her knowledge that: 1. The Registrant's periodic report on Form N-CSR for the period ended April 30, 2008 (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: June 26, 2008 Date: June 26, 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-----