40 West 57th Street, 18th Floor New York, New York
|
10019 |
(Address of principal executive offices)
|
(Zip code) |
Item 1.
|
Reports to Stockholders.
|
ANNUAL REPORT
October 31, 2011
|
||||||
TOTAL RETURN
U.S. TREASURY
FUND, INC.
MANAGED MUNICIPAL
FUND, INC.
NORTH AMERICAN
GOVERNMENT BOND
FUND, INC.
ISI STRATEGY
FUND, INC.
|
||||||
ISI Funds Annual Report – Table of Contents
|
Investment Advisor’s Message
|
1
|
Management Discussion & Analysis
|
3
|
Performance Comparisons
|
11
|
Shareholder Expense Examples
|
19
|
Portfolio Profiles
|
22
|
Schedule of Investments
|
23
|
Statements of Assets and Liabilities
|
36
|
Statements of Operations
|
40
|
Statements of Changes in Net Assets
|
42
|
Financial Highlights
|
48
|
Notes to Financial Statements
|
55
|
Report of Independent Registered Public Accounting Firm
|
65
|
Fund Directors and Officers
|
66
|
Notice to Shareholders
|
69
|
Investment Advisory Agreement Approval
|
71
|
Investment Advisor’s Message
|
10/31/2011
|
1 |
Investment Advisor’s Message (continued)
|
2 |
Management Discussion & Analysis (Unaudited)
|
3 |
Management Discussion & Analysis (Unaudited)
(continued)
|
4 |
Management Discussion & Analysis (Unaudited)
(continued)
|
% of Treasury Yield
|
||||||
Maturity
|
10/29/10
|
10/31/11
|
Change
|
|||
5 Year
|
111.24
|
136.86
|
+25.62
|
|||
10 year
|
101.15
|
121.86
|
+20.71
|
|||
15 year
|
109.14
|
130.41
|
+21.27
|
|||
20 year
|
107.58
|
133.77
|
+26.19
|
5 |
Management Discussion & Analysis (Unaudited)
(continued)
|
6 |
Management Discussion & Analysis (Unaudited)
(continued)
|
Maturity
|
Mexican
Yield
|
Canadian
Yield
|
Mexico’s Yield Advantage
|
|||
2 Year
|
4.51
|
0.99
|
+352 bps
|
|||
3 Year
|
4.63
|
1.14
|
+349 bps
|
|||
5 Year
|
5.01
|
1.50
|
+351 bps
|
|||
7 Year
|
5.62
|
1.79
|
+383 bps
|
|||
10 Year
|
6.18
|
2.28
|
+390 bps
|
7 |
Management Discussion & Analysis (Unaudited)
(continued)
|
8 |
Management Discussion & Analysis (Unaudited)
(continued)
|
9 |
Management Discussion & Analysis (Unaudited)
(continued)
|
10 |
Total Return US Treasury Fund –
Performance Comparison1 (Unaudited)
|
11 |
Total Return US Treasury Fund –
Performance Comparison1 (Unaudited) (continued)
|
Cumulative Total Returns (With Sales Charge)
|
Average Annual Total Returns (With Sales Charge)
|
|||||||||
Periods Ended
October 31, 2011
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Since Inception2
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Since Inception2
|
Total Return US
Treasury Fund |
1.75%
|
18.49%
|
29.81%
|
56.12%
|
354.77%
|
1.75%
|
5.82%
|
5.36%
|
4.55%
|
6.74%
|
Barclays Capital
Treasury Index3 |
5.27%
|
20.00%
|
36.96%
|
65.52%
|
402.14%
|
5.27%
|
6.27%
|
6.49%
|
5.17%
|
7.21%
|
Barclays Capital Intermediate
Treasury Index3 |
3.35%
|
15.88%
|
33.24%
|
56.35%
|
333.77%
|
3.35%
|
5.03%
|
5.91%
|
4.57%
|
6.53%
|
Barclays Capital
Long-Term Treasury Index3 |
16.52%
|
43.29%
|
58.70%
|
107.90%
|
698.21%
|
16.52%
|
12.74%
|
9.68%
|
7.59%
|
9.37%
|
1
|
Past performance is not indicative of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The performance information presented in the graph and table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. All performance assumes the reinvestment of dividends and capital gain distributions and includes the Fund’s maximum 3.00% sales charge. Distributions of the Fund’s capital gains and non-US Treasury income may be subject to state and local taxes. Management is not aware of any single index that is truly representative of the Fund since its active maturity management policy allows the manager to adjust the weighted average maturity throughout each US Treasury sector. Currently, the Fund’s weighted average maturity is approximately 5.95 years.
|
2
|
The Fund’s inception date is August 10, 1988. Benchmark returns are for the periods beginning August 31, 1988.
|
3
|
The Barclays Capital Treasury Index is an unmanaged index reflecting the performance of all public Treasury obligations and does not focus on one particular segment of the Treasury market. The Barclays Capital Intermediate Treasury Index is an unmanaged index reflecting the performance of US Treasury securities in the intermediate-term Treasury sector. The Barclays Capital Long-Term Treasury Index is an unmanaged index reflecting the performance of US Treasury securities in the long-term Treasury sector. Benchmark returns do not reflect expenses or sales charges that have been deducted from the Fund’s returns.
|
Expense Ratio Information as of:
|
October 31, 2011
|
Gross Expense Ratio
|
0.84%
|
12 |
Managed Municipal Fund –
Performance Comparison1 (Unaudited)
|
13 |
Managed Municipal Fund –
Performance Comparison1 (Unaudited) (continued)
|
Cumulative Total Returns (With Sales Charge)
|
Average Annual Total Returns (With Sales Charge)
|
|||||||||
Periods Ended
October 31, 2011
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Since Inception
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Since Inception
|
Managed Municipal
Fund - ISI Class A Shares2 |
-0.11%
|
15.58%
|
16.60%
|
40.56%
|
193.63%
|
-0.11%
|
4.95%
|
3.12%
|
3.46%
|
5.09%
|
Managed Municipal
Fund - ISI Class I Shares3 |
3.28%
|
—
|
—
|
—
|
2.40%
|
3.28%
|
—
|
—
|
—
|
2.24%
|
Barclays Capital General Obligation Index4
|
4.08%
|
25.51%
|
29.19%
|
62.93%
|
269.04%
|
4.08%
|
7.87%
|
5.26%
|
5.00%
|
6.21%
|
Barclays Capital
Prerefunded Municipal Bond Index4 |
1.92%
|
14.19%
|
23.44%
|
46.67%
|
203.66%
|
1.92%
|
4.52%
|
4.30%
|
3.90%
|
5.26%
|
Consumer Price Index5
|
3.90%
|
4.90%
|
13.07%
|
28.41%
|
47.22%
|
3.90%
|
1.61%
|
2.49%
|
2.53%
|
1.80%
|
1
|
Past performance is not indicative of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The performance information presented in the graph and table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. All performance assumes the reinvestment of dividends and capital gain distributions and includes the sales charge, if applicable. ISI Class A Shares have a maximum 3.00% sales charges. Distributions of the Fund’s income and capital gains may be subject to state and local taxes.
|
2
|
The ISI Class A Shares inception date is February 26, 1990. Benchmark returns are for the periods beginning February 28, 1990.
|
3
|
The ISI Class I Shares inception date is October 7, 2010. Benchmark returns are for the period beginning October 31, 2010.
|
4
|
The Barclays Capital General Obligation Index is an unmanaged index reflecting general municipal bond market performance. The Barclays Capital Prerefunded Municipal Bond Index, an unmanaged index, is a subcomponent of the general Barclays Capital Municipal Bond Index, and contains only bonds from that index that have been prerefunded or escrowed to maturity. Benchmark returns do not reflect expenses or sales charges that have been deducted from the Fund’s returns.
|
5
|
The Consumer Price Index is a widely used measure of inflation.
|
Expense Ratio Information as of:
|
October 31, 2011
|
Gross Expense Ratio – Class A
|
1.01%
|
Gross Expense Ratio – Class I
|
0.76%
|
14 |
North American Government Bond Fund –
Performance Comparison1 (Unaudited)
|
15 |
North American Government Bond Fund –
Performance Comparison1 (Unaudited) (continued)
|
Cumulative Total Returns (With Sales Charge)
|
Average Annual Total Returns (With Sales Charge)
|
|||||||||
Periods Ended
October 31, 2011
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Since Inception
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Since Inception
|
North American Government Bond Fund - ISI Class A Shares2
|
0.25%
|
20.56%
|
29.24%
|
60.88%
|
187.35%
|
0.25%
|
6.43%
|
5.26%
|
4.87%
|
5.78%
|
North American Government Bond Fund - ISI Class C Shares3
|
1.84%
|
21.98%
|
29.19%
|
—
|
41.48%
|
1.84%
|
6.85%
|
5.26%
|
—
|
4.18%
|
North American Government Bond Fund - ISI Class I Shares4
|
3.88%
|
—
|
—
|
—
|
5.69%
|
3.88%
|
—
|
—
|
—
|
5.04%
|
Barclays Capital Intermediate Treasury Index5
|
3.35%
|
15.88%
|
33.24%
|
56.35%
|
176.55%
|
3.35%
|
5.03%
|
5.91%
|
4.57%
|
5.57%
|
Barclays Capital Emerging Americas Index: Mexico Section / Citigroup US
Broad Investment-Grade Bond Index Mexico Sector / Barclays Capital Global Aggregate Index: Mexico Section6 |
0.07%
|
46.54%
|
28.07%
|
102.85%
|
501.67%
|
0.07%
|
13.58%
|
5.07%
|
7.33%
|
10.04%
|
Consumer Price Index7
|
3.90%
|
4.90%
|
13.07%
|
28.41%
|
65.37%
|
3.90%
|
1.61%
|
2.49%
|
2.53%
|
2.72%
|
1
|
Past performance is not indicative of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The performance information presented in the graph and table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. All performance assumes the reinvestment of dividends and capital gain distributions and includes sales charges, if applicable. ISI Class A shares have a maximum 3.00% sales charge. ISI Class C Shares have a maximum 1.00% contingent deferred sales charge in the first year, which is eliminated thereafter.
|
2
|
ISI Class A Shares inception date is January 15, 1993. Benchmark returns are for the periods beginning January 31, 1993.
|
3
|
ISI Class C Shares inception date is May 16, 2003. Cumulative and annualized returns for the Barclays Capital Intermediate Treasury Index from May 31, 2003 through October 31, 2011 were 41.81% and 4.24%, respectively.
|
4
|
ISI Class I Shares inception date is September 16, 2010. Benchmark returns are for the periods beginning September 30, 2010.
|
5
|
The Barclays Capital Intermediate Treasury Index is an unmanaged index reflecting the performance of US Treasury securities in the intermediate-term Treasury sector. Benchmark returns do not reflect expenses or sales charges that have been deducted from the Fund’s returns.
|
6
|
Reflects the performance of the Barclays Capital Emerging Americas Index: Mexico Section through October 31, 2004 and the Citigroup US Broad Investment-Grade Bond Index Mexico Sector from that date through October 31, 2006 and the Barclays Capital Global Aggregate Index: Mexico from October 31, 2006 through October 31, 2011. The Barclays Capital Emerging Americas Index: Mexico Section has been discontinued. Barclays Capital Emerging Americas Index: Mexico Section was an unmanaged sub-index of the Barclays Capital Emerging Americas Index reflecting the performance of selected Mexican debt instruments with maturities of one year or more. The Citigroup US Broad Investment-Grade Bond Index Mexico Sector is an unmanaged sub-index of the Citigroup US Broad Investment-Grade Bond Index reflecting the performance of selected Mexican debt instruments with maturities of one year or more. The Barclays Capital Global Aggregate Index: Mexico Section is an unmanaged sub-index of Barclays Capital Global Aggregate Index which provides broad-based measure of global investment-grade fixed income markets. The Mexico Section reflects the US dollar performance of selected Mexican government peso-denominated debt instruments with maturities of one year or more. Benchmark returns do not reflect expenses or sales charges that have been deducted from the Fund’s returns.
|
7
|
The Consumer Price Index is a widely used measure of inflation.
|
Expense Ratio Information as of:
|
October 31, 2011
|
Gross Expense Ratio – Class A
|
1.18%
|
Gross Expense Ratio – Class C
|
1.78%
|
Gross Expense Ratio – Class I
|
0.78%
|
16 |
ISI Strategy Fund –
Performance Comparison1 (Unaudited)
|
17 |
ISI Strategy Fund –
Performance Comparison1 (Unaudited) (continued)
|
Cumulative Total Returns (With Sales Charge)
|
Average Annual Total Returns (With Sales Charge)
|
|||||||||
Periods Ended
October 31, 2011
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Since Inception2
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
Since Inception2
|
ISI Strategy Fund
|
0.91%
|
32.07%
|
4.48%
|
49.49%
|
75.97%
|
0.91%
|
9.72%
|
0.88%
|
4.10%
|
4.08%
|
Wilshire 5000
(Full Cap) Index3 |
7.58%
|
43.00%
|
4.80%
|
60.42%
|
186.56%
|
7.58%
|
12.66%
|
0.94%
|
4.84%
|
7.76%
|
Consumer Price Index4
|
3.90%
|
4.90%
|
13.07%
|
28.41%
|
35.67%
|
3.90%
|
1.61%
|
2.49%
|
2.53%
|
2.19%
|
Lipper Flexible Portfolio Funds Average5
|
4.63%
|
43.78%
|
16.32%
|
63.43%
|
85.03%
|
4.63%
|
12.87%
|
3.07%
|
5.03%
|
4.47%
|
1
|
Past performance is not indicative of future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. The performance information presented in the graph and table above does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. All performance assumes the reinvestment of dividends and capital gain distributions and includes the Fund’s maximum 3.00% sales charge.
|
2
|
The Fund’s inception date is September 16, 1997. Benchmark returns are for the periods beginning September 30, 1997.
|
3
|
The Wilshire 5000 (Full Cap) Index is an unmanaged index that represents the broadest measure of the US equity market. Benchmark returns do not reflect expenses or sales charges that have been deducted from the Fund’s returns.
|
4
|
The Consumer Price Index is a widely used measure of inflation.
|
5
|
Lipper figures represent the average total returns by all mutual funds designated by Lipper as falling into the category indicated. The Lipper Flexible Portfolio Funds Average category includes funds that allocate their investments across various asset classes, including domestic common stocks, bonds and money market instruments with a focus on total return.
|
Expense Ratio Information as of:
|
October 31, 2011
|
Gross Expense Ratio
|
1.04%
|
18 |
Shareholder Expense Examples (Unaudited)
|
19 |
Shareholder Expense Examples (Unaudited) (continued)
|
Total Return US Treasury Fund
|
||||
|
Beginning
Account Value
May 1, 2011
|
Ending
Account Value
October 31, 2011
|
Expenses Paid
During Period(1)
|
Annualized
Expense Ratio
|
Based on Actual Fund Return
|
$1,000.00
|
$1,075.20
|
$4.08
|
0.78%
|
Based on Hypothetical 5% Return
|
$1,000.00
|
$1,021.27
|
$3.97
|
0.78%
|
Managed Municipal Fund – Class A
|
||||
|
Beginning
Account Value
May 1, 2011
|
Ending
Account Value
October 31, 2011
|
Expenses Paid
During Period(1)
|
Annualized
Expense Ratio
|
Based on Actual Fund Return
|
$1,000.00
|
$1,040.20
|
$5.25
|
1.02%
|
Based on Hypothetical 5% Return
|
$1,000.00
|
$1,020.06
|
$5.19
|
1.02%
|
Managed Municipal Fund – Class I
|
||||
|
Beginning
Account Value
May 1, 2011
|
Ending
Account Value
October 31, 2011
|
Expenses Paid
During Period(1)
|
Annualized
Expense Ratio
|
Based on Actual Fund Return
|
$1,000.00
|
$1,041.50
|
$3.96
|
0.77%
|
Based on Hypothetical 5% Return
|
$1,000.00
|
$1,021.32
|
$3.92
|
0.77%
|
North American Government Bond Fund – Class A
|
||||
|
Beginning
Account Value
May 1, 2011
|
Ending
Account Value
October 31, 2011
|
Expenses Paid
During Period(1)
|
Annualized
Expense Ratio
|
Based on Actual Fund Return
|
$1,000.00
|
$1,034.40
|
$6.00
|
1.17%
|
Based on Hypothetical 5% Return
|
$1,000.00
|
$1,019.31
|
$5.96
|
1.17%
|
North American Government Bond Fund – Class C
|
||||
|
Beginning
Account Value
May 1, 2011
|
Ending
Account Value
October 31, 2011
|
Expenses Paid
During Period(1)
|
Annualized
Expense Ratio
|
Based on Actual Fund Return
|
$1,000.00
|
$1,032.20
|
$9.07
|
1.77%
|
Based on Hypothetical 5% Return
|
$1,000.00
|
$1,016.28
|
$9.00
|
1.77%
|
(1)
|
Expenses are equal to the Fund’s annualized expense ratio for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
|
20 |
Shareholder Expense Examples (Unaudited) (continued)
|
North American Government Bond Fund – Class I
|
||||
|
Beginning
Account Value
May 1, 2011
|
Ending
Account Value
October 31, 2011
|
Expenses Paid
During Period(1)
|
Annualized
Expense Ratio
|
Based on Actual Fund Return
|
$1,000.00
|
$1,037.20
|
$3.95
|
0.77%
|
Based on Hypothetical 5% Return
|
$1,000.00
|
$1,021.32
|
$3.92
|
0.77%
|
ISI Strategy Fund
|
||||
|
Beginning
Account Value
May 1, 2011
|
Ending
Account Value
October 31, 2011
|
Expenses Paid
During Period(1)
|
Annualized
Expense Ratio
|
Based on Actual Fund Return
|
$1,000.00
|
$ 914.80
|
$5.07
|
1.05%
|
Based on Hypothetical 5% Return
|
$1,000.00
|
$1,019.91
|
$5.35
|
1.05%
|
(1)
|
Expenses are equal to the Fund’s annualized expense ratio for the period, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
|
21 |
Portfolio Profiles (Unaudited)
|
Portfolio Profiles (as a % of Net Assets)
|
October 31, 2011
|
Total Return US Treasury Fund
|
|
US Treasury Obligations
|
88.96%
|
Repurchase Agreements
|
9.53%
|
Other Assets and Liabilities
|
1.51%
|
100.00%
|
|
Managed Municipal Fund
|
|
Aaa Municipal Obligations*
|
80.81%
|
Aa Municipal Obligations*
|
12.30%
|
US Treasury Obligations
|
4.64%
|
Repurchase Agreements
|
1.36%
|
Other Assets and Liabilities
|
0.89%
|
100.00%
|
|
* Ratings are based on Moody’s Investors Service, Inc.
|
|
North American Government Bond Fund
|
|
Canadian Securities
|
18.38%
|
Mexican Securities
|
11.69%
|
US Treasury Obligations
|
65.57%
|
Repurchase Agreements
|
3.26%
|
Other Assets and Liabilities
|
1.10%
|
100.00%
|
|
ISI Strategy Fund
|
|
Consumer Discretionary
|
13.09%
|
Consumer Staples
|
11.47%
|
Energy
|
10.23%
|
Financials
|
13.19%
|
Health Care
|
11.92%
|
Industrials
|
9.91%
|
Information Technology
|
16.45%
|
Materials
|
3.68%
|
Telecommunication Services
|
1.60%
|
Utilities
|
2.89%
|
US Treasury Obligations
|
5.15%
|
Repurchase Agreements
|
0.50%
|
Other Assets and Liabilities
|
(0.08)%
|
100.00%
|
22 |
Total Return US Treasury Fund
|
Schedule of Investments
|
October 31, 2011
|
Security
|
Interest
Rate
|
Maturity
Date
|
Principal
Amount
|
Market
Value
|
||||||||
US TREASURY OBLIGATIONS - 88.96%
|
||||||||||||
US Treasury Notes
|
0.625% |
07/31/12
|
$ | 1,500,000 | $ | 1,505,799 | ||||||
US Treasury Notes
|
0.375% |
08/31/12
|
10,000,000 | 10,020,710 | ||||||||
US Treasury Notes
|
2.250% |
11/30/17
|
16,600,000 | 17,474,089 | ||||||||
US Treasury Notes
|
3.750% |
11/15/18
|
1,370,000 | 1,567,580 | ||||||||
US Treasury Notes
|
2.625% |
08/15/20
|
7,000,000 | 7,365,862 | ||||||||
US Treasury Bonds
|
8.125% |
08/15/19
|
10,000,000 | 14,692,190 | ||||||||
US Treasury Bonds
|
8.750% |
08/15/20
|
11,300,000 | 17,545,013 | ||||||||
US Treasury Bonds
|
7.875% |
02/15/21
|
1,000,000 | 1,496,719 | ||||||||
US Treasury Bonds
|
6.375% |
08/15/27
|
3,000,000 | 4,384,218 | ||||||||
Total US Treasury Obligations (Cost $70,993,001)
|
$ | 76,052,180 |
Security
|
Principal
Amount
|
Market
Value
|
||||||
REPURCHASE AGREEMENTS - 9.53%
|
||||||||
JPMorgan Chase, N.A.
|
||||||||
Dated 10/31/11, 0.03%, principal and interest in the amount of $8,152,007 to be repurchased 11/01/11, collateralized by US Treasury Inflation-Protected Note, par value of $6,355,000 due 07/15/16 with a value of $8,320,530 (Cost $8,152,000)
|
$ | 8,152,000 | $ | 8,152,000 | ||||
Total Investments - 98.49% (Cost $79,145,001)*
|
$ | 84,204,180 | ||||||
Other Assets in Excess of Liabilities - 1.51%
|
1,289,598 | |||||||
Net Assets - 100.00%
|
$ | 85,493,778 |
*
|
Cost for Federal income tax purposes is $79,145,001 and net unrealized appreciation on a tax basis consists of:
|
Gross Unrealized Appreciation
|
$ | 5,060,807 | ||
Gross Unrealized Depreciation
|
(1,628 | ) | ||
Net Unrealized Appreciation
|
$ | 5,059,179 |
23 |
Managed Municipal Fund
|
Schedule of Investments
|
October 31, 2011
|
Security
|
Interest
Rate
|
Maturity
Date
|
Ratings
(Moody’s/
S&P)1
|
Principal
Amount
|
Market
Value
|
|||||||||
MUNICIPAL BONDS - 93.11%
|
||||||||||||||
General Obligation - 57.27%
|
||||||||||||||
Alexandria, VA, Capital Improvements
|
4.250% |
06/15/21
|
Aaa/AAA
|
$ | 3,300,000 | $ | 3,542,517 | |||||||
Arlington County, VA, Public Improvements
|
4.500% |
01/15/28
|
Aaa/AAA
|
1,600,000 | 1,620,640 | |||||||||
Austin, TX, Public Improvements, Series A
|
3.500% |
09/01/30
|
Aaa/AAA
|
2,500,000 | 2,319,625 | |||||||||
Baltimore County, MD
|
4.000% |
08/01/22
|
Aaa/AAA
|
1,665,000 | 1,862,636 | |||||||||
Delaware State, Series B
|
3.000% |
07/01/19
|
Aaa/AAA
|
1,400,000 | 1,507,814 | |||||||||
Delaware State, Series B
|
3.250% |
01/01/21
|
Aaa/AAA
|
2,000,000 | 2,096,500 | |||||||||
Du Page County, IL, Jail Project
|
5.600% |
01/01/21
|
Aaa/AAA
|
1,600,000 | 1,862,816 | |||||||||
Florida State, Board of Education, Public Education, Series I
|
4.125% |
06/01/21
|
Aa1/AAA
|
3,000,000 | 3,098,220 | |||||||||
Georgia State, Series B
|
4.250% |
04/01/25
|
Aaa/AAA
|
1,120,000 | 1,183,750 | |||||||||
Georgia State, Series G
|
4.125% |
10/01/23
|
Aaa/AAA
|
2,000,000 | 2,128,740 | |||||||||
Henrico County, VA, Public Improvements
|
4.250% |
07/15/24
|
Aaa/AAA
|
2,830,000 | 2,963,519 | |||||||||
Mecklenburg County, NC
|
3.500% |
02/01/26
|
Aaa/AAA
|
2,000,000 | 2,018,980 | |||||||||
Mecklenburg County, NC, Public Improvements, Series B
|
4.000% |
03/01/27
|
Aaa/AAA
|
1,000,000 | 1,036,970 | |||||||||
Minnesota State, State Trunk Highway,
Series B |
4.000% |
08/01/30
|
Aa1/AA+
|
2,830,000 | 2,943,313 | |||||||||
Missouri State, Fourth State Building, Series A
|
4.125% |
10/01/19
|
Aaa/AAA
|
2,000,000 | 2,039,300 | |||||||||
Oregon State, State Property, ODOT Building, Public Improvements, Series K
|
5.000% |
05/01/30
|
Aa1/AA+
|
1,915,000 | 2,145,796 | |||||||||
Prince Georges County, MD, Public Improvements
|
4.125% |
07/15/26
|
Aaa/AAA
|
2,000,000 | 2,094,160 | |||||||||
South Carolina State, Coastal Carolina University, Series A
|
4.000% |
04/01/28
|
Aaa/AA+
|
1,000,000 | 1,034,310 | |||||||||
South Carolina State, Highway, Series A
|
3.000% |
08/01/22
|
Aaa/AA+
|
1,475,000 | 1,485,812 | |||||||||
Tennessee State, Series A
|
5.000% |
05/01/26
|
Aaa/AA+
|
500,000 | 552,355 | |||||||||
Tennessee State, Series A
|
5.000% |
05/01/27
|
Aaa/AA+
|
2,075,000 | 2,292,958 | |||||||||
Tennessee State, Series A
|
4.000% |
05/01/28
|
Aaa/AA+
|
2,000,000 | 2,047,740 | |||||||||
Tennessee State, Series A
|
3.625% |
05/01/31
|
Aaa/AA+
|
2,000,000 | 1,928,820 | |||||||||
Texas, Water Financial Assistance, Series C-1
|
5.000% |
08/01/39
|
Aaa/AA+
|
3,515,000 | 3,755,496 | |||||||||
Utah State, Series A
|
3.000% |
07/01/18
|
Aaa/AAA
|
1,000,000 | 1,073,100 | |||||||||
Utah State, Series A
|
5.000% |
07/01/23
|
Aaa/AAA
|
2,785,000 | 3,358,264 | |||||||||
Virginia State, Series B
|
4.250% |
06/01/26
|
Aaa/AAA
|
2,500,000 | 2,606,150 | |||||||||
Washington State, Series F
|
4.500% |
07/01/27
|
Aa1/AA+
|
2,500,000 | 2,616,250 | |||||||||
Washington, Suburban Sanitation District, Water Supply
|
4.250% |
06/01/26
|
Aaa/AAA
|
2,500,000 | 2,603,975 | |||||||||
$ | 61,820,526 |
24 |
Managed Municipal Fund
|
Schedule of Investments (continued)
|
October 31, 2011
|
Security
|
Interest
Rate
|
Maturity
Date
|
Ratings
(Moody’s/
S&P)1
|
Principal
Amount
|
Market
Value
|
|||||||||
MUNICIPAL BONDS - 93.11% (continued)
|
||||||||||||||
Prerefunded2 Issues - 17.25%
|
||||||||||||||
Arlington County, VA, Public Improvements, 01/15/13 @ 100
|
4.500% |
01/15/28
|
Aaa/AA+
|
$ | 400,000 | $ | 420,012 | |||||||
Dallas, TX, 02/15/12 @ 100
|
4.000% |
02/15/16
|
Aa1/AA+
|
2,450,000 | 2,476,828 | |||||||||
Delaware State, Series A, 01/01/12 @ 100
|
4.200% |
01/01/20
|
Aaa/AAA
|
1,675,000 | 1,686,223 | |||||||||
Gwinnett County, GA, Water & Sewer Authority, 08/01/12 @ 100
|
5.250% |
08/01/24
|
Aaa/AAA
|
1,500,000 | 1,556,295 | |||||||||
Maryland State, Capital Improvements, Series A, 02/15/12 @ 100
|
4.000% |
02/15/20
|
Aaa/AAA
|
4,000,000 | 4,411,600 | |||||||||
Mecklenburg County, NC, Public Improvements, Series A,
02/01/14 @ 100 |
4.000% |
02/01/20
|
Aaa/AAA
|
3,000,000 | 3,123,540 | |||||||||
Montgomery County, MD, Public Improvements, Series A,
05/01/13 @ 100 |
4.000% |
05/01/21
|
Aaa/AAA
|
2,450,000 | 2,583,745 | |||||||||
Salt Lake City, UT, School District, School Board Guaranty, Series A, 03/01/13 @ 100
|
4.500% |
03/01/20
|
Aaa/NR
|
2,240,000 | 2,363,290 | |||||||||
$ | 18,621,533 | |||||||||||||
Revenue Bonds - 18.59%
|
||||||||||||||
Colorado, Water Resources & Power Development Authority, Series A
|
4.000% |
09/01/29
|
Aaa/AAA
|
$ | 2,000,000 | $ | 2,012,500 | |||||||
Fairfax County, VA, Water Authority Water Revenue
|
4.500% |
04/01/27
|
Aaa/AAA
|
2,500,000 | 2,636,850 | |||||||||
Florida, Water Pollution Control Financing, Series A
|
5.000% |
01/15/29
|
Aaa/AAA
|
500,000 | 548,210 | |||||||||
Florida, Water Pollution Control Financing, Series A
|
5.100% |
01/15/29
|
Aaa/AAA
|
550,000 | 606,507 | |||||||||
Gwinnett County, GA, Water & Sewer Authority, Series A
|
4.000% |
08/01/28
|
Aaa/AAA
|
2,000,000 | 2,061,100 | |||||||||
Kansas State, Development Finance Authority, Series DW-1
|
3.000% |
04/01/20
|
Aaa/AAA
|
2,865,000 | 2,956,938 | |||||||||
Kansas State, Development Finance Authority, Series DW-1
|
3.125% |
04/01/22
|
Aaa/AAA
|
2,975,000 | 3,022,481 | |||||||||
Texas, Water Development Board Revenue, State Revolving Fund-Senior Lien, Series A
|
4.750% |
07/15/20
|
Aaa/AAA
|
3,000,000 | 3,005,760 | |||||||||
Virginia State Resources Authority Clean Water Revenue
|
4.500% |
10/01/28
|
Aaa/AAA
|
3,000,000 | 3,211,140 | |||||||||
$ | 20,061,486 | |||||||||||||
Total Municipal Bonds (Cost $95,892,628)
|
$ | 100,503,545 | ||||||||||||
US TREASURY OBLIGATIONS - 4.64%
|
||||||||||||||
US Treasury Notes (Cost $5,011,169)
|
0.375% |
08/31/12
|
—
|
$ | 5,000,000 | $ | 5,010,355 |
25 |
Managed Municipal Fund
|
Schedule of Investments (continued)
|
October 31, 2011
|
Security
|
Principal
Amount
|
Market
Value
|
||||||
REPURCHASE AGREEMENTS - 1.36%
|
||||||||
JPMorgan Chase, N.A.
|
||||||||
Dated 10/31/11, 0.03%, principal and interest in the amount of $1,467,001 to be repurchased 11/01/11, collateralized by US Treasury Inflation-Protected Note, par value of $1,145,000 due 07/15/16 with a value of $1,499,136 (Cost $1,467,000)
|
$ | 1,467,000 | $ | 1,467,000 | ||||
Total Investments - 99.11% (Cost $102,370,797)*
|
$ | 106,980,900 | ||||||
Other Assets in Excess of Liabilities - 0.89%
|
965,447 | |||||||
Net Assets - 100.00%
|
$ | 107,946,347 |
1
|
Moody’s Municipal Bond Ratings:
|
||
Aaa
|
Judged to be of the best quality.
|
||
Aa
|
Judged to be of high quality by all standards. Issues are sometimes denoted with a 1, 2 or 3, which denote a high, medium or low ranking within the rating.
|
||
S&P Municipal Bond Ratings:
|
|||
AAA
|
Of the highest quality.
|
||
AA
|
The second strongest capacity of payment of debt services. Those issues determined to possess very strong safety characteristics are denoted with a plus (+) sign.
|
||
NR
|
Bond is not rated by this rating organization.
|
||
2
|
Prerefunded: Bonds which are prerefunded are collateralized by US Treasury securities which are held in escrow and are used to pay principal and interest on tax-exempt issues and to retire the bonds in full at the earliest refunding date.
|
||
*
|
Cost for Federal income tax purposes is $102,370,797 and net unrealized appreciation on a tax basis consists of:
|
Gross Unrealized Appreciation
|
$ | 4,754,026 | ||
Gross Unrealized Depreciation
|
(143,923 | ) | ||
Net Unrealized Appreciation
|
$ | 4,610,103 |
26 |
North American Government Bond Fund
|
Schedule of Investments
|
October 31, 2011
|
Security
|
Interest
Rate
|
Maturity
Date
|
Principal
Amount1
|
Market
Value
|
||||||||
CANADIAN SECURITIES - 18.38%
|
||||||||||||
Canadian Government Bonds
|
1.500% |
03/01/12
|
CAD |
2,000,000
|
$ | 2,010,414 | ||||||
Canadian Government Bonds
|
1.500% |
06/01/12
|
2,000,000 | 2,013,082 | ||||||||
Canadian Government Bonds
|
3.750% |
06/01/12
|
7,500,000 | 7,646,802 | ||||||||
Canadian Government Bonds
|
3.500% |
06/01/13
|
3,100,000 | 3,232,304 | ||||||||
Canadian Government Bonds
|
4.000% |
06/01/17
|
9,000,000 | 10,140,045 | ||||||||
Canadian Government Bonds
|
3.250% |
06/01/21
|
1,950,000 | 2,111,400 | ||||||||
Total Canadian Securities (Cost $25,402,646)
|
$ | 27,154,047 | ||||||||||
MEXICAN SECURITIES - 11.69%
|
||||||||||||
Mexican Bono2
|
9.000% |
12/20/12
|
MXN |
31,782,400
|
$ | 2,504,370 | ||||||
Mexican Bono2
|
8.000% |
12/19/13
|
17,850,000 | 1,433,651 | ||||||||
Mexican Bono2
|
6.000% |
06/18/15
|
23,850,000 | 1,863,285 | ||||||||
Mexican Bono2
|
8.000% |
12/17/15
|
93,907,000 | 7,833,128 | ||||||||
Mexican Bono2
|
7.250% |
12/15/16
|
44,050,000 | 3,630,854 | ||||||||
Total Mexican Securities (Cost $18,509,286)
|
$ | 17,265,288 | ||||||||||
US TREASURY OBLIGATIONS - 65.57%
|
||||||||||||
US Treasury Notes
|
0.375% |
08/31/12
|
$ | 4,000,000 | $ | 4,008,284 | ||||||
US Treasury Notes
|
2.250% |
11/30/17
|
24,200,000 | 25,474,275 | ||||||||
US Treasury Notes
|
2.625% |
08/15/20
|
10,850,000 | 11,417,086 | ||||||||
US Treasury Bonds
|
8.750% |
05/15/17
|
12,800,000 | 18,033,997 | ||||||||
US Treasury Bonds
|
8.875% |
08/15/17
|
10,300,000 | 14,723,366 | ||||||||
US Treasury Bonds
|
8.125% |
08/15/19
|
6,500,000 | 9,549,924 | ||||||||
US Treasury Bonds
|
8.500% |
02/15/20
|
6,000,000 | 9,102,186 | ||||||||
US Treasury Bonds
|
8.750% |
08/15/20
|
2,300,000 | 3,571,109 | ||||||||
US Treasury Bonds
|
7.875% |
02/15/21
|
650,000 | 972,867 | ||||||||
Total US Treasury Obligations (Cost $90,946,799)
|
$ | 96,853,094 |
27 |
North American Government Bond Fund
|
Schedule of Investments (continued)
|
October 31, 2011
|
Security
|
Principal
Amount
|
Market
Value
|
||||||
REPURCHASE AGREEMENTS - 3.26%
|
||||||||
JPMorgan Chase, N.A.
|
||||||||
Dated 10/31/11, 0.03%, principal and interest in the amount of $4,817,004 to be repurchased 11/01/11, collateralized by US Treasury Inflation-Protected Note, par value of $3,755,000 due 07/15/16 with a value of $4,916,379 (Cost $4,817,000)
|
$ | 4,817,000 | $ | 4,817,000 | ||||
Total Investments - 98.90% (Cost $139,675,731)*
|
$ | 146,089,429 | ||||||
Other Assets in Excess of Liabilities - 1.10%
|
1,621,791 | |||||||
Net Assets - 100.00%
|
$ | 147,711,220 |
CAD
|
Canadian dollar
|
MXN
|
Mexican peso
|
1
|
Principal Amount is shown in US dollars unless otherwise noted.
|
2
|
Bonos are fixed rate, local currency-denominated coupon bonds issued by the Mexican government.
|
*
|
Cost for Federal income tax purposes is $139,675,731 and net unrealized appreciation on a tax basis consists of:
|
Gross Unrealized Appreciation
|
$ | 7,658,347 | ||
Gross Unrealized Depreciation
|
(1,244,649 | ) | ||
Net Unrealized Appreciation
|
$ | 6,413,698 |
28 |
ISI Strategy Fund
|
Schedule of Investments
|
October 31, 2011
|
Security
|
Shares
|
Market
Value
|
||||||
COMMON STOCKS - 94.43%
|
||||||||
Consumer Discretionary - 13.09%
|
||||||||
Automobiles - 0.09%
|
||||||||
Ford Motor Co.*
|
4,400 | $ | 51,392 | |||||
Distributors - 0.22%
|
||||||||
LKQ Corp.*
|
4,400 | 128,392 | ||||||
Diversified Consumer Services - 0.31%
|
||||||||
ITT Educational Services, Inc.*
|
1,700 | 105,332 | ||||||
Weight Watchers International, Inc.
|
1,000 | 74,620 | ||||||
179,952 | ||||||||
Hotels, Restaurants & Leisure - 4.50%
|
||||||||
Ameristar Casinos, Inc.
|
10,780 | 199,430 | ||||||
Brinker International, Inc.
|
1,170 | 26,793 | ||||||
Chipotle Mexican Grill, Inc.*
|
1,000 | 336,120 | ||||||
Choice Hotels International, Inc.
|
1,970 | 70,506 | ||||||
International Game Technology
|
11,650 | 204,924 | ||||||
Las Vegas Sands Corp.*
|
6,880 | 323,016 | ||||||
Marriott International, Inc. - Class A
|
4,806 | 151,389 | ||||||
McDonald's Corp.
|
12,176 | 1,130,542 | ||||||
Wynn Resorts Ltd.
|
1,000 | 132,800 | ||||||
2,575,520 | ||||||||
Internet & Catalog Retail - 0.42%
|
||||||||
Blue Nile, Inc.*
|
1,500 | 67,695 | ||||||
Expedia, Inc.
|
3,195 | 83,901 | ||||||
HSN, Inc.*
|
1,600 | 57,072 | ||||||
Overstock.com, Inc.*
|
4,057 | 33,673 | ||||||
242,341 | ||||||||
Media - 3.06%
|
||||||||
AMC Networks, Inc. - Class A*
|
2,264 | 73,852 | ||||||
Cablevision Systems Corp. - New York Group - Class A
|
9,058 | 131,069 | ||||||
CBS Corp. - Class B - Non-Voting Shares
|
5,413 | 139,709 | ||||||
Comcast Corp. - Class A
|
11,050 | 259,122 | ||||||
DIRECTV - Class A*
|
11,760 | 534,610 | ||||||
Interpublic Group of Cos., Inc. (The)
|
95 | 901 | ||||||
Security
|
Shares
|
Market
Value
|
Media - 3.06%(continued)
|
||||||||
Liberty Global, Inc. - Class A*
|
4,066 | $ | 163,372 | |||||
Liberty Media Corp. - Liberty Starz - Series A*
|
846 | 57,782 | ||||||
News Corp. - Class A
|
605 | 10,600 | ||||||
Scholastic Corp.
|
1,100 | 29,535 | ||||||
Sirius XM Radio, Inc.*
|
41,300 | 73,927 | ||||||
Time Warner Cable, Inc.
|
883 | 56,238 | ||||||
Virgin Media, Inc.
|
650 | 15,847 | ||||||
Walt Disney Co. (The)
|
5,113 | 178,341 | ||||||
World Wrestling Entertainment, Inc.
|
2,510 | 26,380 | ||||||
1,751,285 | ||||||||
Multi-Line Retail - 0.88%
|
||||||||
Dollar General Corp.*
|
2,595 | 102,918 | ||||||
Dollar Tree, Inc.*
|
1,240 | 99,150 | ||||||
Macy's, Inc.
|
3,000 | 91,590 | ||||||
Nordstrom, Inc.
|
2,800 | 141,932 | ||||||
Target Corp.
|
1,251 | 68,492 | ||||||
504,082 | ||||||||
Specialty Retail - 3.04%
|
||||||||
Abercrombie & Fitch Co. - Class A
|
100 | 7,440 | ||||||
AutoZone, Inc.*
|
1,000 | 323,590 | ||||||
Bed Bath & Beyond, Inc.*
|
1,800 | 111,312 | ||||||
Buckle, Inc. (The)
|
1,000 | 44,560 | ||||||
Chico's FAS, Inc.
|
3,000 | 37,080 | ||||||
Express, Inc.
|
2,800 | 63,252 | ||||||
Finish Line, Inc. (The) - Class A
|
1,100 | 22,110 | ||||||
Foot Locker, Inc.
|
3,232 | 70,652 | ||||||
Gap, Inc. (The)
|
7,669 | 144,944 | ||||||
Hibbett Sports, Inc.*
|
1,500 | 61,785 | ||||||
Home Depot, Inc. (The)
|
5,113 | 183,045 | ||||||
Limited Brands, Inc.
|
2,500 | 106,775 | ||||||
Lowe's Cos., Inc.
|
4,110 | 86,392 | ||||||
PetSmart, Inc.
|
2,500 | 117,375 | ||||||
Systemax, Inc.*
|
4,121 | 62,351 | ||||||
Tiffany & Co.
|
1,100 | 87,703 | ||||||
Ulta Salon, Cosmetics & Fragrance, Inc.*
|
1,000 | 67,290 | ||||||
Williams-Sonoma, Inc.
|
2,700 | 101,358 | ||||||
Zumiez, Inc.*
|
1,800 | 40,950 | ||||||
1,739,964 |
29 |
ISI Strategy Fund
|
Schedule of Investments (continued)
|
October 31, 2011
|
Security
|
Shares
|
Market
Value
|
COMMON STOCKS - 94.43% (continued)
|
||||||||
Consumer Discretionary - 13.09% (continued)
|
||||||||
Textiles, Apparel & Luxury Goods - 0.57%
|
||||||||
NIKE, Inc. - Class B
|
2,500 | $ | 240,875 | |||||
Under Armour, Inc. - Class A*
|
1,000 | 84,410 | ||||||
325,285 | ||||||||
Consumer Staples - 11.47%
|
||||||||
Beverages - 2.07%
|
||||||||
Beam, Inc.
|
5,113 | 252,736 | ||||||
Coca-Cola Co. (The)
|
2,500 | 170,800 | ||||||
Coca-Cola Enterprises, Inc.
|
10,720 | 287,510 | ||||||
Constellation Brands, Inc.*
|
12,250 | 247,695 | ||||||
Hansen Natural Corp.*
|
1,600 | 142,544 | ||||||
PepsiCo, Inc.
|
1,328 | 83,598 | ||||||
1,184,883 | ||||||||
Food & Staples Retailing - 2.69%
|
||||||||
CVS Caremark Corp.
|
200 | 7,260 | ||||||
Kroger Co. (The)
|
2,600 | 60,268 | ||||||
Sysco Corp.
|
2,100 | 58,212 | ||||||
Wal-Mart Stores, Inc.
|
18,606 | 1,055,332 | ||||||
Walgreen Co.
|
3,700 | 122,840 | ||||||
Whole Foods Market, Inc.
|
3,300 | 237,996 | ||||||
1,541,908 | ||||||||
Food Products - 1.72%
|
||||||||
General Mills, Inc.
|
4,926 | 189,799 | ||||||
Hershey Co. (The)
|
5,113 | 292,617 | ||||||
Hormel Foods Corp.
|
10,226 | 301,360 | ||||||
McCormick & Co., Inc. - Non-Voting Shares
|
1,598 | 77,599 | ||||||
Smart Balance, Inc.*
|
2,090 | 13,689 | ||||||
Tyson Foods, Inc. - Class A
|
5,500 | 106,150 | ||||||
981,214 | ||||||||
Household Products - 1.23%
|
||||||||
Procter & Gamble Co. (The)
|
11,021 | 705,234 | ||||||
Personal Products - 0.69%
|
||||||||
Herbalife Ltd.
|
6,032 | 376,156 | ||||||
Revlon, Inc. - Class A*
|
1,200 | 17,676 | ||||||
393,832 | ||||||||
Tobacco - 3.07%
|
||||||||
Altria Group, Inc.
|
5,252 | 144,693 | ||||||
Philip Morris International, Inc.
|
16,689 | 1,166,060 | ||||||
Reynolds American, Inc.
|
10,326 | 399,410 | ||||||
Vector Group Ltd.
|
2,790 | 49,020 | ||||||
1,759,183 |
Security
|
Shares
|
Market
Value
|
Energy - 10.23%
|
||||||||
Energy Equipment & Services - 1.35%
|
||||||||
Bristow Group, Inc.
|
1,120 | $ | 55,754 | |||||
Complete Production Services, Inc.*
|
1,695 | 55,596 | ||||||
Diamond Offshore Drilling, Inc.
|
1,000 | 65,540 | ||||||
Halliburton Co.
|
4,200 | 156,912 | ||||||
McDermott International, Inc.*
|
4,600 | 50,508 | ||||||
Newpark Resources, Inc.*
|
1,000 | 8,930 | ||||||
Patterson-UTI Energy, Inc.
|
1,270 | 25,806 | ||||||
RPC, Inc.
|
11,620 | 215,783 | ||||||
SEACOR Holdings, Inc.
|
1,000 | 85,150 | ||||||
Unit Corp.*
|
1,100 | 53,966 | ||||||
773,945 | ||||||||
Oil, Gas & Consumable Fuels - 8.88%
|
||||||||
Berry Petroleum Co. - Class A
|
3,060 | 105,723 | ||||||
Chesapeake Energy Corp.
|
6,600 | 185,592 | ||||||
Chevron Corp.
|
8,502 | 893,135 | ||||||
ConocoPhillips
|
8,950 | 623,367 | ||||||
Continental Resources, Inc.*
|
4,110 | 249,271 | ||||||
Crosstex Energy, Inc.
|
6,500 | 84,695 | ||||||
Enbridge Energy Management LLC*
|
1,290 | 39,758 | ||||||
Energy XXI (Bermuda) Ltd.*
|
1,900 | 55,803 | ||||||
Exxon Mobil Corp.
|
19,841 | 1,549,384 | ||||||
Kinder Morgan, Inc.
|
1,310 | 37,466 | ||||||
Marathon Oil Corp.
|
8,223 | 214,045 | ||||||
Marathon Petroleum Corp.
|
4,111 | 147,585 | ||||||
McMoRan Exploration Co.*
|
5,000 | 60,900 | ||||||
Murphy Oil Corp.
|
2,400 | 132,888 | ||||||
Quicksilver Resources, Inc.*
|
10,000 | 77,000 | ||||||
Rex Energy Corp.*
|
1,570 | 24,304 | ||||||
Ship Finance International Ltd.
|
5,112 | 73,153 | ||||||
Southern Union Co.
|
2,100 | 88,263 | ||||||
Southwestern Energy Co.*
|
500 | 21,020 | ||||||
Spectra Energy Corp.
|
1,860 | 53,252 | ||||||
Tesoro Corp.*
|
3,390 | 87,936 | ||||||
W&T Offshore, Inc.
|
2,500 | 49,225 | ||||||
Whiting Petroleum Corp.*
|
2,000 | 93,100 | ||||||
World Fuel Services Corp.
|
3,500 | 139,475 | ||||||
5,086,340 |
30 |
ISI Strategy Fund
|
Schedule of Investments (continued)
|
October 31, 2011
|
Security
|
Shares
|
Market
Value
|
COMMON STOCKS - 94.43% (continued)
|
||||||||
Financials - 13.19%
|
||||||||
Capital Markets - 2.33%
|
||||||||
American Capital Ltd.*
|
12,300 | $ | 95,571 | |||||
Artio Global Investors, Inc.
|
6,600 | 48,312 | ||||||
BlackRock, Inc. - Class A
|
2,346 | 370,175 | ||||||
Charles Schwab Corp. (The)
|
14,435 | 177,262 | ||||||
Invesco Ltd.
|
4,511 | 90,536 | ||||||
Morgan Stanley
|
4,612 | 81,356 | ||||||
SEI Investments Co.
|
6,566 | 106,303 | ||||||
TD AMERITRADE Holding Corp.
|
21,690 | 363,958 | ||||||
1,333,473 | ||||||||
Commercial Banks - 2.08%
|
||||||||
Centerstate Banks, Inc.
|
496 | 2,817 | ||||||
Cullen/Frost Bankers, Inc.
|
5,263 | 258,098 | ||||||
First Horizon National Corp.
|
11,600 | 81,084 | ||||||
FirstMerit Corp.
|
3,500 | 49,035 | ||||||
MB Financial, Inc.
|
4,900 | 81,193 | ||||||
Susquehanna Bancshares, Inc.
|
6,112 | 44,373 | ||||||
SVB Financial Group*
|
4,700 | 215,918 | ||||||
Webster Financial Corp.
|
3,000 | 58,920 | ||||||
Wells Fargo & Co.
|
15,363 | 398,055 | ||||||
1,189,493 | ||||||||
Consumer Finance - 0.48%
|
||||||||
Advance America Cash Advance Centers, Inc.
|
3,360 | 28,325 | ||||||
DFC Global Corp.*
|
2,400 | 52,608 | ||||||
Discover Financial Services
|
8,240 | 194,134 | ||||||
275,067 | ||||||||
Diversified Financial Services - 2.36%
|
||||||||
Bank of America Corp.
|
35,721 | 243,974 | ||||||
CBOE Holdings, Inc.
|
3,400 | 88,842 | ||||||
Citigroup, Inc.
|
1,470 | 46,437 | ||||||
CME Group, Inc.
|
852 | 234,777 | ||||||
JPMorgan Chase & Co.
|
20,881 | 725,824 | ||||||
Leucadia National Corp.
|
500 | 13,415 | ||||||
1,353,269 | ||||||||
Insurance - 3.36%
|
||||||||
Allstate Corp. (The)
|
2,400 | 63,216 | ||||||
American Equity Investment Life Holding Co.
|
10,400 | 112,736 | ||||||
Brown & Brown, Inc.
|
14,000 | 309,120 | ||||||
Cincinnati Financial Corp.
|
4,712 | 136,365 |
Security
|
Shares
|
Market
Value
|
Insurance - 3.36% (continued)
|
||||||||
CNA Financial Corp.
|
4,100 | $ | 109,060 | |||||
CNO Financial Group, Inc.*
|
15,600 | 97,500 | ||||||
Loews Corp.
|
7,920 | 314,424 | ||||||
MetLife, Inc.
|
75 | 2,637 | ||||||
ProAssurance Corp.
|
5,648 | 432,354 | ||||||
Protective Life Corp.
|
6,280 | 116,808 | ||||||
Prudential Financial, Inc.
|
4,163 | 225,635 | ||||||
StanCorp Financial Group, Inc.
|
101 | 3,428 | ||||||
1,923,283 | ||||||||
Real Estate Investment Trusts - 1.85%
|
||||||||
American Capital Agency Corp.
|
14,250 | 392,017 | ||||||
Hatteras Financial Corp.
|
9,368 | 240,758 | ||||||
National Retail Properties, Inc.
|
2,550 | 69,488 | ||||||
Public Storage
|
2,760 | 356,178 | ||||||
1,058,441 | ||||||||
Thrifts & Mortgage Finance - 0.73%
|
||||||||
First Niagara Financial Group, Inc.
|
4,113 | 37,799 | ||||||
New York Community Bancorp, Inc.
|
21,800 | 290,158 | ||||||
TFS Financial Corp.*
|
10,000 | 92,100 | ||||||
420,057 | ||||||||
Health Care - 11.92%
|
||||||||
Biotechnology - 1.63%
|
||||||||
Acorda Therapeutics, Inc.*
|
3,000 | 65,520 | ||||||
Amylin Pharmaceuticals, Inc.*
|
7,300 | 84,096 | ||||||
Biogen Idec, Inc.*
|
1,910 | 222,248 | ||||||
Cepheid, Inc.*
|
5,080 | 182,270 | ||||||
Cubist Pharmaceuticals, Inc.*
|
2,160 | 81,670 | ||||||
Emergent Biosolutions, Inc.*
|
1,000 | 18,860 | ||||||
Incyte Corp.*
|
4,100 | 56,457 | ||||||
Maxygen, Inc.
|
10,230 | 60,357 | ||||||
Momenta Pharmaceuticals, Inc.*
|
5,410 | 80,068 | ||||||
Myriad Genetics, Inc.*
|
3,000 | 63,840 | ||||||
Neurocrine Biosciences, Inc.*
|
2,900 | 18,154 | ||||||
933,540 | ||||||||
Health Care Equipment & Supplies - 1.29%
|
||||||||
Baxter International, Inc.
|
502 | 27,600 | ||||||
IDEXX Laboratories, Inc.*
|
5,163 | 371,684 | ||||||
Meridian Bioscience, Inc.
|
3,105 | 56,573 | ||||||
Sirona Dental Systems, Inc.*
|
4,800 | 229,920 | ||||||
STERIS Corp.
|
1,748 | 54,153 | ||||||
739,930 |
31 |
ISI Strategy Fund
|
Schedule of Investments (continued)
|
October 31, 2011
|
Security
|
Shares
|
Market
Value
|
COMMON STOCKS - 94.43% (continued)
|
||||||||
Health Care - 11.92% (continued)
|
||||||||
Health Care Providers & Services - 3.11%
|
||||||||
AmerisourceBergen Corp.
|
10,700 | $ | 436,560 | |||||
Catalyst Health Solutions, Inc.*
|
2,500 | 137,425 | ||||||
Community Health Systems, Inc.*
|
4,900 | 85,652 | ||||||
Express Scripts, Inc.*
|
1,500 | 68,595 | ||||||
Health Management Associates, Inc. - Class A*
|
12,000 | 105,120 | ||||||
Health Net, Inc.*
|
1,800 | 50,022 | ||||||
LifePoint Hospitals, Inc.*
|
2,000 | 77,320 | ||||||
Magellan Health Services, Inc.*
|
3,100 | 159,557 | ||||||
McKesson Corp.
|
1,200 | 97,860 | ||||||
Medco Health Solutions, Inc.*
|
1,230 | 67,478 | ||||||
MEDNAX, Inc.*
|
2,900 | 190,820 | ||||||
Omnicare, Inc.
|
100 | 2,982 | ||||||
Owens & Minor, Inc.
|
1,100 | 32,912 | ||||||
Select Medical Holdings Corp.*
|
7,900 | 68,730 | ||||||
Team Health Holdings, Inc.*
|
6,600 | 134,112 | ||||||
Tenet Healthcare Corp.*
|
13,990 | 66,172 | ||||||
1,781,317 | ||||||||
Health Care Technology - 0.46%
|
||||||||
Allscripts Healthcare Solutions, Inc.*
|
12,450 | 238,418 | ||||||
Omnicell, Inc.*
|
1,600 | 23,920 | ||||||
262,338 | ||||||||
Life Sciences Tools & Services - 0.47%
|
||||||||
Bruker Corp.*
|
9,470 | 136,652 | ||||||
Pharmaceutical Product Development, Inc.
|
4,000 | 131,960 | ||||||
268,612 | ||||||||
Pharmaceuticals - 4.96%
|
||||||||
Abbott Laboratories
|
4,546 | 244,893 | ||||||
Allergan, Inc.
|
921 | 77,475 | ||||||
Bristol-Myers Squibb Co.
|
2,803 | 88,547 | ||||||
Forest Laboratories, Inc.*
|
7,200 | 225,360 | ||||||
Johnson & Johnson
|
13,038 | 839,517 | ||||||
Medicis Pharmaceutical Corp. - Class A
|
2,500 | 95,725 | ||||||
Merck & Co., Inc.
|
13,102 | 452,019 | ||||||
Pfizer, Inc.
|
36,340 | 699,908 |
Security
|
Shares
|
Market
Value
|
Pharmaceuticals - 4.96% (continued)
|
||||||||
Salix Pharmaceuticals Ltd.*
|
1,400 | $ | 47,957 | |||||
ViroPharma, Inc.*
|
3,400 | 68,816 | ||||||
2,840,217 | ||||||||
Industrials - 9.91%
|
||||||||
Aerospace & Defense - 2.15%
|
||||||||
AAR Corp.
|
2,052 | 40,896 | ||||||
Alliant Techsystems, Inc.
|
4,300 | 249,744 | ||||||
Boeing Co. (The)
|
1,300 | 85,527 | ||||||
Goodrich Corp.
|
1,153 | 141,392 | ||||||
Honeywell International, Inc.
|
3,609 | 189,112 | ||||||
Huntington Ingalls Industries, Inc.*
|
718 | 21,181 | ||||||
Northrop Grumman Corp.
|
4,311 | 248,960 | ||||||
Taser International, Inc.*
|
2,110 | 10,487 | ||||||
United Technologies Corp.
|
3,108 | 242,362 | ||||||
1,229,661 | ||||||||
Air Freight & Logistics - 0.43%
|
||||||||
FedEx Corp.
|
856 | 70,046 | ||||||
United Parcel Service, Inc. - Class B
|
2,500 | 175,600 | ||||||
245,646 | ||||||||
Airlines - 0.15%
|
||||||||
United Continental Holdings, Inc.*
|
4,502 | 86,979 | ||||||
Building Products - 0.30%
|
||||||||
Fortune Brands Home & Security, Inc.*
|
5,113 | 74,292 | ||||||
Griffon Corp.*
|
4,700 | 44,509 | ||||||
Simpson Manufacturing Co., Inc.
|
1,710 | 52,428 | ||||||
171,229 | ||||||||
Commercial Services & Supplies - 0.38%
|
||||||||
ABM Industries, Inc.
|
500 | 10,110 | ||||||
Geo Group, Inc. (The)*
|
2,900 | 52,867 | ||||||
United Stationers, Inc.
|
2,400 | 76,344 | ||||||
US Ecology, Inc.
|
540 | 9,752 | ||||||
Viad Corp.
|
3,300 | 69,069 | ||||||
218,142 | ||||||||
Construction & Engineering - 0.22%
|
||||||||
Aecom Technology Corp.*
|
2,000 | 41,840 | ||||||
Tutor Perini Corp.
|
5,800 | 84,274 | ||||||
126,114 | ||||||||
Industrial Conglomerates - 1.03%
|
||||||||
3M Co.
|
2,456 | 194,073 | ||||||
General Electric Co.
|
23,560 | 393,688 | ||||||
587,761 |
32 |
ISI Strategy Fund
|
Schedule of Investments (continued)
|
October 31, 2011
|
Security
|
Shares
|
Market
Value
|
COMMON STOCKS - 94.43% (continued)
|
||||||||
Industrials - 9.91% (continued)
|
||||||||
Machinery - 2.38%
|
||||||||
Actuant Corp. - Class A
|
2,000 | $ | 45,000 | |||||
Blount International, Inc.*
|
3,800 | 59,014 | ||||||
Briggs & Stratton Corp.
|
2,900 | 42,340 | ||||||
Caterpillar, Inc.
|
3,567 | 336,939 | ||||||
CLARCOR, Inc.
|
1,790 | 86,779 | ||||||
Graco, Inc.
|
3,490 | 149,861 | ||||||
Illinois Tool Works, Inc.
|
1,191 | 57,918 | ||||||
Joy Global, Inc.
|
5,163 | 450,213 | ||||||
Mueller Industries, Inc.
|
3,300 | 133,485 | ||||||
1,361,549 | ||||||||
Professional Services - 0.99%
|
||||||||
Acacia Research - Acacia Technologies*
|
2,800 | 111,552 | ||||||
FTI Consulting, Inc.*
|
1,470 | 57,933 | ||||||
Mistras Group, Inc.*
|
1,200 | 26,160 | ||||||
Verisk Analytics, Inc. - Class A*
|
10,600 | 372,590 | ||||||
568,235 | ||||||||
Road & Rail - 0.80%
|
||||||||
Knight Transportation, Inc.
|
2,850 | 43,320 | ||||||
Landstar System, Inc.
|
1,690 | 75,425 | ||||||
Union Pacific Corp.
|
3,400 | 338,538 | ||||||
457,283 | ||||||||
Trading Companies & Distributors - 1.08%
|
||||||||
Aircastle Ltd.
|
597 | 7,242 | ||||||
Fastenal Co.
|
10,726 | 408,553 | ||||||
Titan Machinery, Inc.*
|
500 | 11,665 | ||||||
Watsco, Inc.
|
1,330 | 82,008 | ||||||
WESCO International, Inc.*
|
2,300 | 111,458 | ||||||
620,926 | ||||||||
Information Technology - 16.45%
|
||||||||
Communications Equipment - 0.21%
|
||||||||
Brocade Communications Systems, Inc.*
|
6,230 | 27,287 | ||||||
Motorola Solutions, Inc.
|
2,000 | 93,820 | ||||||
121,107 | ||||||||
Computers & Peripherals - 4.14%
|
||||||||
Apple, Inc.*
|
5,113 | 2,069,640 | ||||||
Cray, Inc.*
|
1,280 | 8,102 | ||||||
Hewlett-Packard Co.
|
1,700 | 45,237 | ||||||
Lexmark International, Inc.*
|
1,700 | 53,890 | ||||||
NCR Corp.*
|
3,100 | 59,024 |
Security
|
Shares
|
Market
Value
|
Computers & Peripherals - 4.14% (continued)
|
||||||||
QLogic Corp.*
|
3,700 | $ | 51,689 | |||||
STEC, Inc.*
|
4,120 | 46,639 | ||||||
Synaptics, Inc.*
|
1,170 | 39,534 | ||||||
2,373,755 | ||||||||
Electronic Equipment, Instruments & Components - 1.36%
|
||||||||
Agilent Technologies, Inc.*
|
1,768 | 65,540 | ||||||
Anixter International, Inc.*
|
200 | 11,738 | ||||||
AVX Corp.
|
7,480 | 100,307 | ||||||
Brightpoint, Inc.*
|
7,250 | 73,588 | ||||||
Insight Enterprises, Inc.*
|
4,800 | 81,120 | ||||||
Itron, Inc.*
|
3,130 | 115,153 | ||||||
Power-One, Inc.*
|
1,000 | 4,950 | ||||||
ScanSource, Inc.*
|
1,674 | 58,188 | ||||||
Tech Data Corp.*
|
4,669 | 229,621 | ||||||
Vishay Intertechnology, Inc.*
|
3,400 | 36,550 | ||||||
776,755 | ||||||||
Internet Software & Services - 1.92%
|
||||||||
Earthlink, Inc.
|
13,300 | 93,233 | ||||||
Google, Inc. - Class A*
|
1,166 | 691,018 | ||||||
j2 Global Communications, Inc.
|
1,640 | 50,479 | ||||||
NIC, Inc.
|
2,270 | 31,349 | ||||||
ValueClick, Inc.*
|
1,000 | 17,600 | ||||||
WebMD Health Corp.*
|
1,200 | 43,140 | ||||||
XO Group, Inc.*
|
11,050 | 101,992 | ||||||
Yahoo!, Inc.*
|
4,400 | 68,816 | ||||||
1,097,627 | ||||||||
IT Services - 3.68%
|
||||||||
CACI International, Inc. - Class A*
|
990 | 54,341 | ||||||
Cardtronics, Inc.*
|
2,033 | 50,683 | ||||||
DST Systems, Inc.
|
2,500 | 125,475 | ||||||
Fidelity National Information Services, Inc.
|
280 | 7,330 | ||||||
Heartland Payment Systems, Inc.
|
4,062 | 88,389 | ||||||
International Business Machines Corp.
|
8,744 | 1,614,405 | ||||||
ManTech International Corp. - Class A
|
1,400 | 49,182 | ||||||
Teradata Corp.*
|
1,933 | 115,323 | ||||||
2,105,128 |
33 |
ISI Strategy Fund
|
Schedule of Investments (continued)
|
October 31, 2011
|
Security
|
Shares
|
Market
Value
|
COMMON STOCKS - 94.43% (continued)
|
||||||||
Information Technology - 16.45% (continued)
|
||||||||
Semiconductors & Semiconductor Equipment - 1.93%
|
||||||||
Cirrus Logic, Inc.*
|
976 | $ | 16,241 | |||||
Intel Corp.
|
22,959 | 563,414 | ||||||
Novellus Systems, Inc.*
|
2,200 | 76,010 | ||||||
OmniVision Technologies, Inc.*
|
2,600 | 42,406 | ||||||
Texas Instruments, Inc.
|
10,275 | 315,751 | ||||||
Veeco Instruments, Inc.*
|
3,540 | 94,482 | ||||||
1,108,304 | ||||||||
Software - 3.21%
|
||||||||
ANSYS, Inc.*
|
5,113 | 277,943 | ||||||
Blackbaud, Inc.
|
2,910 | 81,567 | ||||||
Microsoft Corp.
|
31,122 | 828,779 | ||||||
Oracle Corp.
|
7,169 | 234,928 | ||||||
Pegasystems, Inc.
|
1,050 | 39,679 | ||||||
Quest Software, Inc.*
|
7,000 | 123,130 | ||||||
SolarWinds, Inc.*
|
1,060 | 30,592 | ||||||
Taleo Corp. - Class A*
|
900 | 29,160 | ||||||
Tyler Technologies, Inc.*
|
6,090 | 192,261 | ||||||
1,838,039 | ||||||||
Materials - 3.68%
|
||||||||
Chemicals - 2.61%
|
||||||||
A. Schulman, Inc.
|
1,958 | 41,333 | ||||||
CF Industries Holdings, Inc.
|
1,900 | 308,313 | ||||||
Cytec Industries, Inc.
|
5,113 | 228,398 | ||||||
Dow Chemical Co. (The)
|
4,169 | 116,232 | ||||||
Olin Corp.
|
4,388 | 82,758 | ||||||
PolyOne Corp.
|
4,377 | 48,979 | ||||||
Rockwood Holdings, Inc.*
|
3,058 | 140,790 | ||||||
RPM International, Inc.
|
12,608 | 283,302 | ||||||
W.R. Grace & Co.*
|
5,841 | 244,095 | ||||||
1,494,200 | ||||||||
Containers & Packaging - 0.16%
|
||||||||
Graphic Packaging Holding Co.*
|
335 | 1,481 | ||||||
Silgan Holdings, Inc.
|
2,490 | 93,474 | ||||||
94,955 | ||||||||
Metals & Mining - 0.91%
|
||||||||
Freeport-McMoRan Copper & Gold, Inc.
|
2,000 | 80,520 | ||||||
Hecla Mining Co.*
|
1,000 | 6,270 | ||||||
Metals USA Holdings Corp.*
|
2,600 | 28,314 |
Security
|
Shares
|
Market
Value
|
Metals & Mining - 0.91% (continued)
|
||||||||
Newmont Mining Corp.
|
1,300 | $ | 86,879 | |||||
Royal Gold, Inc.
|
1,595 | 114,170 | ||||||
Southern Copper Corp.
|
2,145 | 65,809 | ||||||
Titanium Metals Corp.
|
4,512 | 75,576 | ||||||
Worthington Industries, Inc.
|
3,559 | 61,499 | ||||||
519,037 | ||||||||
Telecommunication Services - 1.60%
|
||||||||
Diversified Telecommunication Services - 1.20%
|
||||||||
AT&T, Inc.
|
1,000 | 29,310 | ||||||
CenturyLink, Inc.
|
11,449 | 403,692 | ||||||
Cogent Communications Group, Inc.*
|
4,100 | 65,805 | ||||||
Premiere Global Services, Inc.*
|
1,010 | 9,150 | ||||||
Verizon Communications, Inc.
|
4,800 | 177,504 | ||||||
685,461 | ||||||||
Wireless Telecommunication Services - 0.40%
|
||||||||
American Tower Corp. - Class A*
|
1,900 | 104,690 | ||||||
MetroPCS Communications, Inc.*
|
700 | 5,950 | ||||||
USA Mobility, Inc.
|
8,970 | 117,238 | ||||||
227,878 | ||||||||
Utilities - 2.89%
|
||||||||
Electric Utilities - 1.28%
|
||||||||
Exelon Corp.
|
7,819 | 347,085 | ||||||
Northeast Utilities
|
3,270 | 113,044 | ||||||
NV Energy, Inc.
|
7,700 | 123,508 | ||||||
PPL Corp.
|
5,113 | 150,169 | ||||||
733,806 | ||||||||
Gas Utilities - 0.32%
|
||||||||
National Fuel Gas Co.
|
3,010 | 184,483 | ||||||
Multi-Utilities - 0.73%
|
||||||||
Alliant Energy Corp.
|
2,300 | 93,794 | ||||||
Ameren Corp.
|
10,200 | 325,176 | ||||||
418,970 | ||||||||
Water Utilities - 0.56%
|
||||||||
American Water Works Co., Inc.
|
10,400 | 317,512 | ||||||
Total Common Stocks
(Cost $45,331,803) |
$ | 54,074,331 |
34 |
ISI Strategy Fund
|
Schedule of Investments (continued)
|
October 31, 2011
|
Security
|
Interest
Rate
|
Maturity
Date
|
Principal
Amount
|
Market
Value
|
||||||||
US TREASURY OBLIGATIONS - 5.15%
|
||||||||||||
US Treasury Notes
|
2.000% |
01/31/16
|
$ | 550,000 | $ | 578,273 | ||||||
US Treasury Notes
|
2.625% |
08/15/20
|
300,000 | 315,680 | ||||||||
US Treasury Bonds
|
8.125% |
08/15/19
|
1,400,000 | 2,056,907 | ||||||||
Total US Treasury Obligations (Cost $2,739,381)
|
$ | 2,950,860 |
Security
|
Principal
Amount
|
Market
Value
|
||||||
REPURCHASE AGREEMENTS - 0.50%
|
||||||||
JPMorgan Chase, N.A.
|
||||||||
Dated 10/31/11, 0.03%, principal and interest in the amount of $284,000 to be repurchased 11/01/11, collateralized by US Treasury Inflation-Protected Note, par value of $225,000 due to 07/15/16 with a value of $294,590 (Cost $284,000)
|
$ | 284,000 | $ | 284,000 | ||||
Total Investments - 100.08% (Cost $48,355,184)**
|
$ | 57,309,191 | ||||||
Liabilities in Excess of Other Assets - (0.08)%
|
(48,068 | ) | ||||||
Net Assets - 100.00%
|
$ | 57,261,123 |
*
|
Non-income producing security.
|
**
|
Cost for Federal income tax purposes is $48,417,226 and net unrealized appreciation on a tax basis consists of:
|
Gross Unrealized Appreciation
|
$ | 12,508,142 | ||
Gross Unrealized Depreciation
|
(3,616,177 | ) | ||
Net Unrealized Appreciation
|
$ | 8,891,965 |
The difference between the federal income tax cost of portfolio investments and the Schedule of Investments cost is due to certain timing differences in the recognition of capital gains and losses under income tax regulations and accounting principles generally accepted in the United States. These timing differences are temporary in nature and are due to the tax deferral of losses on wash sales.
|
35 |
ISI FUNDS
|
Statements of Assets and Liabilities
|
October 31, 2011
|
Total Return
US Treasury
Fund
|
Managed
Municipal
Fund
|
|||||||
ASSETS
|
||||||||
Investments in securities:
|
||||||||
At cost
|
$ | 79,145,001 | $ | 102,370,797 | ||||
At value (Note 1)
|
$ | 84,204,180 | $ | 106,980,900 | ||||
Cash
|
877 | 606 | ||||||
Interest receivable
|
667,614 | 1,101,456 | ||||||
Receivable for capital shares sold
|
786,772 | 52,957 | ||||||
Other assets
|
26,847 | 43,149 | ||||||
TOTAL ASSETS
|
85,686,290 | 108,179,068 | ||||||
LIABILITIES
|
||||||||
Distributions payable
|
39,557 | 112,216 | ||||||
Payable for capital shares redeemed
|
76,880 | 24,999 | ||||||
Accrued investment advisory fees (Note 2)
|
19,291 | 36,723 | ||||||
Accrued distribution fees (Note 2)
|
18,006 | 22,207 | ||||||
Accrued administration fees (Note 2)
|
6,387 | 5,818 | ||||||
Accrued transfer agent fees (Note 2)
|
3,564 | 2,459 | ||||||
Accrued directors' fees (Note 2)
|
4,541 | 4,834 | ||||||
Other accrued expenses and liabilities
|
24,286 | 23,465 | ||||||
TOTAL LIABILITIES
|
192,512 | 232,721 | ||||||
NET ASSETS
|
$ | 85,493,778 | $ | 107,946,347 | ||||
NET ASSETS CONSIST OF:
|
||||||||
Paid-in capital
|
$ | 79,167,956 | $ | 103,376,811 | ||||
Undistributed (distributions in excess of) net investment income
|
— | 690 | ||||||
Accumulated net realized gains (losses) from security transactions
|
1,266,643 | (41,257 | ) | |||||
Net unrealized appreciation on investments
|
5,059,179 | 4,610,103 | ||||||
Net assets
|
$ | 85,493,778 | $ | 107,946,347 |
36 |
ISI FUNDS
|
Statements of Assets and Liabilities (continued)
|
October 31, 2011
|
Total Return
US Treasury
Fund
|
Managed
Municipal
Fund
|
|||||||
SHARES OF CAPITAL STOCK OUTSTANDING OF $0.001 PAR VALUE
|
||||||||
ISI Class A Shares (50,000,000 shares authorized)
|
— | 9,685,478 | ||||||
ISI Class I Shares (5,000,000 shares authorized)
|
— | 334,404 | ||||||
ISI Shares (115,000,000 shares authorized)
|
8,239,136 | — | ||||||
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
|
||||||||
ISI Class A Shares (based on net assets of $104,341,764)
|
$ | — | $ | 10.77 | ||||
ISI Class I Shares (based on net assets of $3,604,583)
|
$ | — | $ | 10.78 | ||||
ISI Shares (based on net assets of $85,493,778)
|
$ | 10.38 | $ | — | ||||
MAXIMUM OFFERING PRICE VALUE PER SHARE (100/97) X NET ASSET VALUE PER SHARE
|
||||||||
ISI Class A Shares
|
$ | — | $ | 11.10 | ||||
ISI Shares
|
$ | 10.70 | $ | — |
37 |
ISI FUNDS
|
Statements of Assets and Liabilities
|
October 31, 2011
|
North American Government
Bond Fund |
ISI
Strategy
Fund
|
|||||||
ASSETS
|
||||||||
Investments in securities:
|
||||||||
At cost
|
$ | 139,675,731 | $ | 48,355,184 | ||||
At value (Note 1)
|
$ | 146,089,429 | $ | 57,309,191 | ||||
Cash
|
181 | 319 | ||||||
Dividends and interest receivable, at value
|
2,084,820 | 65,982 | ||||||
Receivable for capital shares sold
|
26,044 | 128 | ||||||
Other assets
|
70,461 | 26,876 | ||||||
TOTAL ASSETS
|
148,270,935 | 57,402,496 | ||||||
LIABILITIES
|
||||||||
Distributions payable
|
124,437 | — | ||||||
Payable for capital shares redeemed
|
267,883 | 82,535 | ||||||
Accrued investment advisory fees (Note 2)
|
49,476 | 18,764 | ||||||
Accrued distribution fees (Note 2)
|
48,604 | 11,727 | ||||||
Accrued shareholder servicing fees (Note 2)
|
3,644 | — | ||||||
Accrued transfer agent fees (Note 2)
|
10,269 | 1,291 | ||||||
Accrued administration fees (Note 2)
|
9,146 | 3,804 | ||||||
Accrued directors' fees (Note 2)
|
6,658 | 3,073 | ||||||
Other accrued expenses and liabilities
|
39,598 | 20,179 | ||||||
TOTAL LIABILITIES
|
559,715 | 141,373 | ||||||
NET ASSETS
|
$ | 147,711,220 | $ | 57,261,123 | ||||
NET ASSETS CONSIST OF:
|
||||||||
Paid-in capital
|
$ | 141,023,949 | $ | 51,695,946 | ||||
Undistributed (distributions in excess of) net investment income
|
(124,437 | ) | 43,492 | |||||
Accumulated net realized gains (losses) from security and foreign currency transactions
|
427,680 | (3,432,322 | ) | |||||
Net unrealized appreciation on investments and foreign currency translations
|
6,384,028 | 8,954,007 | ||||||
Net assets
|
$ | 147,711,220 | $ | 57,261,123 |
38 |
ISI FUNDS
|
Statements of Assets and Liabilities (continued)
|
October 31, 2011
|
North American
Government
Bond Fund
|
ISI
Strategy
Fund
|
|||||||
SHARES OF CAPITAL STOCK OUTSTANDING OF $0.001 PAR VALUE
|
||||||||
ISI Class A Shares (50,000,000 shares authorized)
|
14,171,740 | — | ||||||
ISI Class C Shares (5,000,000 shares authorized)
|
2,186,704 | — | ||||||
ISI Class I Shares (5,000,000 shares authorized)
|
2,272,357 | — | ||||||
ISI Shares (25,000,000 shares authorized)
|
— | 4,534,713 | ||||||
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
|
||||||||
ISI Class A Shares (based on net assets of $112,407,128)
|
$ | 7.93 | $ | — | ||||
ISI Class C Shares (based on net assets of $17,247,974)*
|
$ | 7.89 | $ | — | ||||
ISI Class I Shares (based on net assets of $18,056,118)
|
$ | 7.95 | $ | — | ||||
ISI Shares (based on net assets of $57,261,123)
|
$ | — | $ | 12.63 | ||||
MAXIMUM OFFERING PRICE VALUE PER SHARE (100/97) X NET ASSET VALUE PER SHARE
|
||||||||
ISI Class A Shares
|
$ | 8.18 | $ | — | ||||
ISI Shares
|
$ | — | $ | 13.02 |
*
|
Contingent deferred sales charge of 1.00% is imposed on the sale of shares if redeemed within the first year of purchase.
|
39 |
ISI FUNDS
|
Statements of Operations
|
Year Ended October 31, 2011
|
Total Return
US Treasury
Fund
|
Managed
Municipal
Fund
|
|||||||
INVESTMENT INCOME
|
||||||||
Interest
|
$ | 2,037,076 | $ | 3,886,637 | ||||
Other income
|
681 | — | ||||||
TOTAL INVESTMENT INCOME
|
2,037,757 | 3,886,637 | ||||||
EXPENSES
|
||||||||
Investment advisory fees (Note 2)
|
204,465 | 424,482 | ||||||
Distribution fees (Note 2):
|
||||||||
ISI Class A Shares
|
— | 258,299 | ||||||
ISI Shares
|
217,313 | — | ||||||
Administration fees (Note 2)
|
63,557 | 73,813 | ||||||
Custody fees
|
55,538 | 77,355 | ||||||
Transfer agent fees (Note 2):
|
||||||||
ISI Class A Shares
|
— | 39,392 | ||||||
ISI Class I Shares
|
— | 947 | ||||||
ISI Shares
|
44,727 | — | ||||||
Professional fees
|
44,503 | 49,130 | ||||||
Registration fees
|
26,241 | 49,652 | ||||||
Compliance consulting fees (Note 2)
|
24,937 | 28,814 | ||||||
Directors' fees and expenses
|
21,287 | 24,620 | ||||||
Other expenses
|
31,165 | 35,592 | ||||||
TOTAL EXPENSES
|
733,733 | 1,062,096 | ||||||
NET INVESTMENT INCOME
|
1,304,024 | 2,824,541 | ||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS
|
||||||||
Net realized gains (losses) from security transactions
|
1,634,170 | (41,257 | ) | |||||
Net change in unrealized appreciation/depreciation on investments
|
642,385 | 153,003 | ||||||
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS
|
2,276,555 | 111,746 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS
|
$ | 3,580,579 | $ | 2,936,287 |
40 |
ISI FUNDS
|
Statements of Operations
|
Year Ended October 31, 2011
|
North American
Government Bond Fund
|
ISI
Strategy
Fund
|
|||||||
INVESTMENT INCOME
|
||||||||
Dividends
|
$ | — | $ | 1,190,878 | ||||
Interest
|
4,409,442 | 167,630 | ||||||
TOTAL INVESTMENT INCOME
|
4,409,442 | 1,358,508 | ||||||
EXPENSES
|
||||||||
Investment advisory fees (Note 2)
|
585,594 | 251,279 | ||||||
Distribution fees (Note 2):
|
||||||||
ISI Class A Shares
|
465,137 | — | ||||||
ISI Class C Shares
|
136,324 | — | ||||||
ISI Shares
|
— | 157,049 | ||||||
Custody fees
|
112,804 | 60,240 | ||||||
Transfer agent fees (Note 2):
|
||||||||
ISI Class A Shares
|
85,274 | — | ||||||
ISI Class C Shares
|
13,430 | — | ||||||
ISI Class I Shares
|
7,932 | — | ||||||
ISI Shares
|
— | 34,627 | ||||||
Administration fees (Note 2)
|
102,568 | 27,160 | ||||||
Professional fees
|
59,093 | 37,527 | ||||||
Shareholder servicing fees (Note 2):
|
||||||||
ISI Class C Shares
|
45,442 | — | ||||||
Compliance consulting fees (Note 2)
|
39,844 | 17,337 | ||||||
Registration fees
|
36,751 | 26,618 | ||||||
Directors' fees and expenses
|
34,464 | 14,689 | ||||||
Other expenses
|
65,334 | 27,044 | ||||||
TOTAL EXPENSES
|
1,789,991 | 653,570 | ||||||
NET INVESTMENT INCOME
|
2,619,451 | 704,938 | ||||||
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENTS AND FOREIGN CURRENCIES
|
||||||||
Net realized gains from:
|
||||||||
Security transactions
|
1,418,519 | 2,271,921 | ||||||
Foreign currency transactions
|
96,027 | — | ||||||
Net change in unrealized appreciation/depreciation on:
|
||||||||
Investments
|
441,057 | (403,351 | ) | |||||
Foreign currency translation
|
(43,124 | ) | — | |||||
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS AND FOREIGN CURRENCIES
|
1,912,479 | 1,868,570 | ||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS
|
$ | 4,531,930 | $ | 2,573,508 |
41 |
Total Return US Treasury Fund
|
Statements of Changes in Net Assets
|
|
Year
Ended
October 31,
2011
|
Year
Ended
October 31,
2010
|
||||||
FROM OPERATIONS
|
||||||||
Net investment income
|
$ | 1,304,024 | $ | 1,532,943 | ||||
Net realized gains from security transactions
|
1,634,170 | 994,042 | ||||||
Net change in net unrealized appreciation/depreciation on investments
|
642,385 | 4,202,408 | ||||||
Net increase in net assets resulting from operations
|
3,580,579 | 6,729,393 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS
|
||||||||
From net investment income
|
(1,304,024 | ) | (1,532,943 | ) | ||||
From net realized gains from security transactions
|
(381,516 | ) | (5,616,815 | ) | ||||
Decrease in net assets resulting from distributions to shareholders
|
(1,685,540 | ) | (7,149,758 | ) | ||||
FROM CAPITAL SHARE TRANSACTIONS
|
||||||||
Proceeds from shares sold
|
5,744,028 | 5,698,834 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders
|
1,130,054 | 5,284,575 | ||||||
Payments for shares redeemed
|
(21,068,096 | ) | (25,065,786 | ) | ||||
Net decrease in net assets resulting from capital share transactions
|
(14,194,014 | ) | (14,082,377 | ) | ||||
TOTAL DECREASE IN NET ASSETS
|
(12,298,975 | ) | (14,502,742 | ) | ||||
NET ASSETS
|
||||||||
Beginning of year
|
97,792,753 | 112,295,495 | ||||||
End of year
|
$ | 85,493,778 | $ | 97,792,753 | ||||
END OF YEAR UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME
|
$ | — | $ | — | ||||
CAPITAL SHARE ACTIVITY
|
||||||||
Shares sold
|
566,944 | 577,733 | ||||||
Shares reinvested
|
113,692 | 550,435 | ||||||
Shares redeemed
|
(2,131,872 | ) | (2,546,872 | ) | ||||
Net decrease in shares outstanding
|
(1,451,236 | ) | (1,418,704 | ) | ||||
Shares outstanding, beginning of year
|
9,690,372 | 11,109,076 | ||||||
Shares outstanding, end of year
|
8,239,136 | 9,690,372 |
42 |
Managed Municipal Fund
|
Statements of Changes in Net Assets
|
Year
Ended
October 31,
2011
|
Year
Ended
October 31,
2010
|
|||||||
FROM OPERATIONS
|
||||||||
Net investment income
|
$ | 2,824,541 | $ | 3,077,914 | ||||
Net realized gains (losses) from security transactions
|
(41,257 | ) | 720,306 | |||||
Net change in net unrealized appreciation/depreciation on investments
|
153,003 | 985,144 | ||||||
Net increase in net assets resulting from operations
|
2,936,287 | 4,783,364 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS
|
||||||||
From net investment income
|
||||||||
ISI Class A Shares
|
(2,740,490 | ) | (3,078,368 | ) | ||||
ISI Class I Shares
|
(83,643 | ) | (182 | ) | ||||
From net realized gains from security transactions
|
||||||||
ISI Class A Shares
|
(702,701 | ) | (345,235 | ) | ||||
ISI Class I Shares
|
(17,283 | ) | — | |||||
Decrease in net assets resulting from distributions to shareholders
|
(3,544,117 | ) | (3,423,785 | ) | ||||
FROM CAPITAL SHARE TRANSACTIONS
|
||||||||
Proceeds from shares sold
|
||||||||
ISI Class A Shares
|
11,333,587 | 22,551,334 | ||||||
ISI Class I Shares
|
4,164,478 | 76,591 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders
|
||||||||
ISI Class A Shares
|
2,108,024 | 2,006,694 | ||||||
ISI Class I Shares
|
28,991 | 182 | ||||||
Payments for shares redeemed
|
||||||||
ISI Class A Shares
|
(20,683,966 | ) | (14,638,906 | ) | ||||
ISI Class I Shares
|
(675,412 | ) | (11 | ) | ||||
Net increase (decrease) in net assets resulting from capital share transactions
|
(3,724,298 | ) | 9,995,884 | |||||
TOTAL INCREASE (DECREASE) IN NET ASSETS
|
(4,332,128 | ) | 11,355,463 | |||||
NET ASSETS
|
||||||||
Beginning of year
|
112,278,475 | 100,923,012 | ||||||
End of year
|
$ | 107,946,347 | $ | 112,278,475 | ||||
END OF YEAR UNDISTRIBUTED NET INVESTMENT INCOME
|
$ | 690 | $ | 282 |
43 |
Managed Municipal Fund
|
Statements of Changes in Net Assets (continued)
|
Year
Ended
October 31,
2011
|
Year
Ended
October 31,
2010
|
|||||||
CAPITAL SHARE ACTIVITY
|
||||||||
Shares sold
|
||||||||
ISI Class A Shares
|
1,069,961 | 2,089,357 | ||||||
ISI Class I Shares
|
388,654 | 7,001 | ||||||
Shares reinvested
|
||||||||
ISI Class A Shares
|
201,088 | 186,500 | ||||||
ISI Class I Shares
|
2,782 | 17 | ||||||
Shares redeemed
|
||||||||
ISI Class A Shares
|
(1,953,697 | ) | (1,357,843 | ) | ||||
ISI Class I Shares
|
(64,049 | ) | (1 | ) | ||||
Net increase (decrease) in shares outstanding
|
||||||||
ISI Class A Shares
|
(682,648 | ) | 918,014 | |||||
ISI Class I Shares
|
327,387 | 7,017 | ||||||
Shares outstanding, beginning of year
|
||||||||
ISI Class A Shares
|
10,368,126 | 9,450,112 | ||||||
ISI Class I Shares
|
7,017 | — | ||||||
Shares outstanding, end of year
|
||||||||
ISI Class A Shares
|
9,685,478 | 10,368,126 | ||||||
ISI Class I Shares
|
334,404 | 7,017 |
44 |
North American Government Bond Fund
|
Statements of Changes in Net Assets
|
Year
Ended
October 31,
2011
|
Year
Ended
October 31,
2010
|
|||||||
FROM OPERATIONS
|
||||||||
Net investment income
|
$ | 2,619,451 | $ | 2,679,004 | ||||
Net realized gains from security and foreign currency transactions
|
1,514,546 | 2,892,343 | ||||||
Net change in net unrealized appreciation/depreciation on investments and foreign currency translation
|
397,933 | 8,160,933 | ||||||
Net increase in net assets resulting from operations
|
4,531,930 | 13,732,280 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS
|
||||||||
From net investment income
|
||||||||
ISI Class A Shares
|
(2,308,484 | ) | (2,397,132 | ) | ||||
ISI Class C Shares
|
(276,833 | ) | (281,317 | ) | ||||
ISI Class I Shares
|
(303,492 | ) | (555 | ) | ||||
From net realized gains from security transactions
|
||||||||
ISI Class A Shares
|
(885,079 | ) | (3,838,365 | ) | ||||
ISI Class C Shares
|
(141,835 | ) | (740,785 | ) | ||||
ISI Class I Shares
|
(66,068 | ) | (586 | ) | ||||
Decrease in net assets resulting from distributions to shareholders
|
(3,981,791 | ) | (7,258,740 | ) | ||||
FROM CAPITAL SHARE TRANSACTIONS
|
||||||||
Proceeds from shares sold
|
||||||||
ISI Class A Shares
|
18,444,746 | 31,062,656 | ||||||
ISI Class C Shares
|
2,997,040 | 3,451,857 | ||||||
ISI Class I Shares
|
19,541,976 | 193,289 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders
|
||||||||
ISI Class A Shares
|
2,045,866 | 4,030,261 | ||||||
ISI Class C Shares
|
263,185 | 664,834 | ||||||
ISI Class I Shares
|
79,028 | 1,141 | ||||||
Payments for shares redeemed
|
||||||||
ISI Class A Shares
|
(42,909,330 | ) | (39,092,239 | ) | ||||
ISI Class C Shares
|
(8,919,558 | ) | (6,715,972 | ) | ||||
ISI Class I Shares
|
(1,924,589 | ) | (8 | ) | ||||
Net decrease in net assets resulting from capital share transactions
|
(10,381,636 | ) | (6,404,181 | ) | ||||
TOTAL INCREASE (DECREASE) IN NET ASSETS
|
(9,831,497 | ) | 69,359 |
45 |
North American Government Bond Fund
|
Statements of Changes in Net Assets (continued)
|
Year
Ended
October 31,
2011
|
Year
Ended
October 31,
2010
|
|||||||
NET ASSETS
|
||||||||
Beginning of year
|
157,542,717 | 157,473,358 | ||||||
End of year
|
$ | 147,711,220 | $ | 157,542,717 | ||||
END OF YEAR UNDISTRIBUTED (DISTRIBUTIONS IN EXCESS OF) NET INVESTMENT INCOME
|
$ | (124,437 | ) | $ | — | |||
CAPITAL SHARE ACTIVITY
|
||||||||
Shares sold
|
||||||||
ISI Class A Shares
|
2,377,677 | 4,064,217 | ||||||
ISI Class C Shares
|
386,824 | 452,123 | ||||||
ISI Class I Shares
|
2,482,523 | 24,780 | ||||||
Shares reinvested
|
||||||||
ISI Class A Shares
|
263,122 | 532,705 | ||||||
ISI Class C Shares
|
34,019 | 88,248 | ||||||
ISI Class I Shares
|
10,193 | 145 | ||||||
Shares redeemed
|
||||||||
ISI Class A Shares
|
(5,508,903 | ) | (5,136,420 | ) | ||||
ISI Class C Shares
|
(1,157,539 | ) | (885,939 | ) | ||||
ISI Class I Shares
|
(245,283 | ) | (1 | ) | ||||
Net increase (decrease) in shares outstanding
|
||||||||
ISI Class A Shares
|
(2,868,104 | ) | (539,498 | ) | ||||
ISI Class C Shares
|
(736,696 | ) | (345,568 | ) | ||||
ISI Class I Shares
|
2,247,433 | 24,924 | ||||||
Shares outstanding, beginning of year
|
||||||||
ISI Class A Shares
|
17,039,844 | 17,579,342 | ||||||
ISI Class C Shares
|
2,923,400 | 3,268,968 | ||||||
ISI Class I Shares
|
24,924 | — | ||||||
Shares outstanding, end of year
|
||||||||
ISI Class A Shares
|
14,171,740 | 17,039,844 | ||||||
ISI Class C Shares
|
2,186,704 | 2,923,400 | ||||||
ISI Class I Shares
|
2,272,357 | 24,924 |
46 |
ISI Strategy Fund
|
Statements of Changes in Net Assets
|
Year
Ended
October 31,
2011
|
Year
Ended
October 31,
2010
|
|||||||
FROM OPERATIONS
|
||||||||
Net investment income
|
$ | 704,938 | $ | 809,776 | ||||
Net realized gains (losses) from security transactions
|
2,271,921 | (488,595 | ) | |||||
Net change in net unrealized appreciation/depreciation on investments
|
(403,351 | ) | 8,625,267 | |||||
Net increase in net assets resulting from operations
|
2,573,508 | 8,946,448 | ||||||
DISTRIBUTIONS TO SHAREHOLDERS
|
||||||||
From net investment income
|
(707,064 | ) | (809,407 | ) | ||||
FROM CAPITAL SHARE TRANSACTIONS
|
||||||||
Proceeds from shares sold
|
6,536,028 | 5,666,622 | ||||||
Net asset value of shares issued in reinvestment of distributions to shareholders
|
610,715 | 705,681 | ||||||
Payments for shares redeemed
|
(12,196,789 | ) | (7,795,400 | ) | ||||
Net decrease in net assets resulting from capital share transactions
|
(5,050,046 | ) | (1,423,097 | ) | ||||
TOTAL INCREASE (DECREASE) IN NET ASSETS
|
(3,183,602 | ) | 6,713,944 | |||||
NET ASSETS
|
||||||||
Beginning of year
|
60,444,725 | 53,730,781 | ||||||
End of year
|
$ | 57,261,123 | $ | 60,444,725 | ||||
END OF YEAR UNDISTRIBUTED NET INVESTMENT INCOME
|
$ | 43,492 | $ | 9,755 | ||||
CAPITAL SHARE ACTIVITY
|
||||||||
Shares sold
|
510,245 | 486,397 | ||||||
Shares reinvested
|
47,681 | 61,148 | ||||||
Shares redeemed
|
(947,151 | ) | (674,109 | ) | ||||
Net decrease in shares outstanding
|
(389,225 | ) | (126,564 | ) | ||||
Shares outstanding, beginning of year
|
4,923,938 | 5,050,502 | ||||||
Shares outstanding, end of year
|
4,534,713 | 4,923,938 |
47 |
Total Return US Treasury Fund
|
Years Ended October 31,
|
||||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Net asset value at beginning of year
|
$ | 10.09 | $ | 10.11 | $ | 9.59 | $ | 9.50 | $ | 9.42 | ||||||||||
Income from investment operations:
|
||||||||||||||||||||
Net investment income(a)
|
0.15 | 0.15 | 0.17 | 0.28 | 0.35 | |||||||||||||||
Net realized and unrealized gains on investments
|
0.33 | 0.50 | 0.70 | 0.16 | 0.08 | |||||||||||||||
Total from investment operations
|
0.48 | 0.65 | 0.87 | 0.44 | 0.43 | |||||||||||||||
Less distributions:
|
||||||||||||||||||||
Dividends from net investment income
|
(0.15 | ) | (0.15 | ) | (0.17 | ) | (0.28 | ) | (0.34 | ) | ||||||||||
Distributions from net realized gains
|
(0.04 | ) | (0.52 | ) | (0.18 | ) | (0.07 | ) | (0.00 | )* | ||||||||||
Return of capital
|
— | — | — | — | (0.01 | ) | ||||||||||||||
Total distributions
|
(0.19 | ) | (0.67 | ) | (0.35 | ) | (0.35 | ) | (0.35 | ) | ||||||||||
Net asset value at end of year
|
$ | 10.38 | $ | 10.09 | $ | 10.11 | $ | 9.59 | $ | 9.50 | ||||||||||
TOTAL RETURN(b)
|
4.87 | % | 6.85 | % | 9.05 | % | 4.61 | % | 4.66 | % | ||||||||||
Net assets at end of year (000's)
|
$ | 85,494 | $ | 97,793 | $ | 112,295 | $ | 119,973 | $ | 124,768 | ||||||||||
Ratio of expenses to average net assets
|
0.84 | % | 0.82 | % | 0.80 | % | 0.79 | % | 0.79 | % | ||||||||||
Ratio of net investment income to average net assets
|
1.50 | % | 1.49 | % | 1.68 | % | 2.86 | % | 3.68 | % | ||||||||||
Portfolio turnover rate
|
51 | % | 44 | % | 109 | % | 70 | % | 29 | % |
(a)
|
Calculated using the average shares outstanding for the year.
|
(b)
|
Total return is a measure of the change in value of an investment in the Fund over the year covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
*
|
Amount less than $0.005 per share.
|
48 |
Managed Municipal Fund - Class A
|
Years Ended October 31,
|
||||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Net asset value at beginning of year
|
$ | 10.82 | $ | 10.68 | $ | 9.96 | $ | 10.61 | $ | 10.80 | ||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||
Net investment income(a)
|
0.28 | 0.31 | 0.32 | 0.36 | 0.38 | |||||||||||||||
Net realized and unrealized gains (losses) on investments
|
0.02 | 0.18 | 0.74 | (0.50 | ) | (0.14 | ) | |||||||||||||
Total from investment operations
|
0.30 | 0.49 | 1.06 | (0.14 | ) | 0.24 | ||||||||||||||
Less distributions:
|
||||||||||||||||||||
Dividends from net investment income
|
(0.28 | ) | (0.31 | ) | (0.32 | ) | (0.47 | ) | (0.34 | ) | ||||||||||
Distributions from net realized gains
|
(0.07 | ) | (0.04 | ) | (0.02 | ) | (0.04 | ) | (0.09 | ) | ||||||||||
Total distributions
|
(0.35 | ) | (0.35 | ) | (0.34 | ) | (0.51 | ) | (0.43 | ) | ||||||||||
Net asset value at end of year
|
$ | 10.77 | $ | 10.82 | $ | 10.68 | $ | 9.96 | $ | 10.61 | ||||||||||
TOTAL RETURN(b)
|
2.93 | % | 4.62 | % | 10.68 | % | (1.44 | )% | 2.29 | % | ||||||||||
Net assets at end of year (000's)
|
$ | 104,342 | $ | 112,203 | $ | 100,923 | $ | 75,072 | $ | 73,038 | ||||||||||
Ratio of expenses to average net assets
|
1.01 | % | 0.97 | % | 0.97 | % | 0.96 | % | 0.94 | % | ||||||||||
Ratio of net investment income to average net assets
|
2.65 | % | 2.89 | % | 3.02 | % | 3.48 | % | 3.57 | % | ||||||||||
Portfolio turnover rate
|
10 | % | 22 | % | 10 | % | 7 | % | 5 | % |
(a)
|
Calculated using the average shares outstanding for the year.
|
(b)
|
Total return is a measure of the change in value of an investment in the Fund over the year covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
49 |
Managed Municipal Fund - Class I
|
|
Year
Ended
October 31,
2011
|
Period
Ended
October 31,
2010(a)
|
||||||
Net asset value at beginning of period
|
$ | 10.82 | $ | 10.94 | ||||
Income (loss) from investment operations:
|
||||||||
Net investment income(b)
|
0.31 | 0.02 | ||||||
Net realized and unrealized gains (losses) on investments
|
0.03 | (0.11 | ) | |||||
Total from investment operations
|
0.34 | (0.09 | ) | |||||
Less distributions:
|
||||||||
Dividends from net investment income
|
(0.31 | ) | (0.03 | ) | ||||
Distributions from net realized gains
|
(0.07 | ) | — | |||||
Total distributions
|
(0.38 | ) | (0.03 | ) | ||||
Net asset value at end of period
|
$ | 10.78 | $ | 10.82 | ||||
TOTAL RETURN(c)
|
3.28 | % | (0.86 | )%(d) | ||||
Net assets at end of period (000's)
|
$ | 3,605 | $ | 76 | ||||
Ratio of expenses to average net assets
|
0.76 | % | 0.70 | %(e) | ||||
Ratio of net investment income to average net assets
|
2.92 | % | 2.83 | %(e) | ||||
Portfolio turnover rate
|
10 | % | 22 | %(d) |
(a)
|
Class I commenced operations on October 7, 2010.
|
(b)
|
Calculated using the average shares outstanding for the period.
|
(c)
|
Total return is a measure of the change in value of an investment in the Fund over the period covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
(d)
|
Not annualized.
|
(e)
|
Annualized.
|
50 |
North American Government Bond Fund - Class A
|
|
Years Ended October 31,
|
|||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Net asset value at beginning of year
|
$ | 7.89 | $ | 7.56 | $ | 7.22 | $ | 7.53 | $ | 7.41 | ||||||||||
Income (loss) from
investment operations: |
||||||||||||||||||||
Net investment income(a)
|
0.14 | 0.14 | 0.14 | 0.23 | 0.26 | |||||||||||||||
Net realized and unrealized gains (losses) on investments and foreign currencies
|
0.12 | 0.56 | 0.56 | (0.18 | ) | 0.22 | ||||||||||||||
Total from investment operations
|
0.26 | 0.70 | 0.70 | 0.05 | 0.48 | |||||||||||||||
Less distributions:
|
||||||||||||||||||||
Dividends from net investment income
|
(0.16 | ) | (0.14 | ) | (0.08 | ) | (0.19 | ) | (0.35 | ) | ||||||||||
Distributions from net realized gains
|
(0.06 | ) | (0.23 | ) | (0.28 | ) | (0.14 | ) | — | |||||||||||
Return of capital
|
— | — | — | (0.03 | ) | (0.01 | ) | |||||||||||||
Total distributions
|
(0.22 | ) | (0.37 | ) | (0.36 | ) | (0.36 | ) | (0.36 | ) | ||||||||||
Net asset value at end of year
|
$ | 7.93 | $ | 7.89 | $ | 7.56 | $ | 7.22 | $ | 7.53 | ||||||||||
TOTAL RETURN(b)
|
3.30 | % | 9.53 | % | 9.80 | % | 0.51 | % | 6.71 | % | ||||||||||
Net assets at end of year (000's)
|
$ | 112,407 | $ | 134,383 | $ | 132,814 | $ | 140,326 | $ | 131,748 | ||||||||||
Ratio of expenses to average net assets
|
1.18 | % | 1.15 | % | 1.13 | % | 1.11 | % | 1.11 | % | ||||||||||
Ratio of net investment income to average net assets
|
1.83 | % | 1.85 | % | 1.87 | % | 2.97 | % | 3.54 | % | ||||||||||
Portfolio turnover rate
|
46 | % | 48 | % | 131 | % | 108 | % | 49 | % |
(a)
|
Calculated using the average shares outstanding for the year.
|
(b)
|
Total return is a measure of the change in value of an investment in the Fund over the year covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
51 |
North American Government Bond Fund - Class C
|
|
Years Ended October 31,
|
|||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Net asset value at beginning of year
|
$ | 7.85 | $ | 7.54 | $ | 7.21 | $ | 7.52 | $ | 7.40 | ||||||||||
Income (loss) from
investment operations:
|
||||||||||||||||||||
Net investment income(a)
|
0.10 | 0.09 | 0.09 | 0.18 | 0.21 | |||||||||||||||
Net realized and unrealized gains (losses) on investments and foreign currencies
|
0.12 | 0.56 | 0.55 | (0.18 | ) | 0.22 | ||||||||||||||
Total from investment operations
|
0.22 | 0.65 | 0.64 | 0.00 | 0.43 | |||||||||||||||
Less distributions:
|
||||||||||||||||||||
Dividends from net investment income
|
(0.12 | ) | (0.11 | ) | (0.03 | ) | (0.14 | ) | (0.30 | ) | ||||||||||
Distributions from net realized gains
|
(0.06 | ) | (0.23 | ) | (0.28 | ) | (0.14 | ) | — | |||||||||||
Return of capital
|
— | — | — | (0.03 | ) | (0.01 | ) | |||||||||||||
Total distributions
|
(0.18 | ) | (0.34 | ) | (0.31 | ) | (0.31 | ) | (0.31 | ) | ||||||||||
Net asset value at end of year
|
$ | 7.89 | $ | 7.85 | $ | 7.54 | $ | 7.21 | $ | 7.52 | ||||||||||
TOTAL RETURN(b)
|
2.84 | % | 8.85 | % | 8.97 | % | (0.12 | )% | 6.03 | % | ||||||||||
Net assets at end of year (000's)
|
$ | 17,248 | $ | 22,963 | $ | 24,659 | $ | 20,636 | $ | 16,848 | ||||||||||
Ratio of expenses to average net assets
|
1.78 | % | 1.78 | % | 1.76 | % | 1.73 | % | 1.74 | % | ||||||||||
Ratio of net investment income to average net assets
|
1.23 | % | 1.23 | % | 1.22 | % | 2.34 | % | 2.93 | % | ||||||||||
Portfolio turnover rate
|
46 | % | 48 | % | 131 | % | 108 | % | 49 | % |
(a)
|
Calculated using the average shares outstanding for the year.
|
(b)
|
Total return is a measure of the change in value of an investment in the Fund over the year covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
52 |
North American Government Bond Fund - Class I
|
|
Year
Ended
October 31,
2011
|
Period
Ended
October 31,
2010(a)
|
||||||
Net asset value at beginning of period
|
$ | 7.89 | $ | 7.80 | ||||
Income from investment operations:
|
||||||||
Net investment income(b)
|
0.18 | 0.02 | ||||||
Net realized and unrealized gains on investments and foreign currencies
|
0.12 | 0.12 | ||||||
Total from investment operations
|
0.30 | 0.14 | ||||||
Less distributions:
|
||||||||
Dividends from net investment income
|
(0.18 | ) | (0.02 | ) | ||||
Distributions from net realized gains
|
(0.06 | ) | (0.03 | ) | ||||
Total distributions
|
(0.24 | ) | (0.05 | ) | ||||
Net asset value at end of period
|
$ | 7.95 | $ | 7.89 | ||||
TOTAL RETURN(c)
|
3.88 | % | 1.74 | %(d) | ||||
Net assets at end of period (000's)
|
$ | 18,056 | $ | 197 | ||||
Ratio of expenses to average net assets
|
0.78 | % | 0.69 | %(e) | ||||
Ratio of net investment income to average net assets
|
2.25 | % | 2.25 | %(e) | ||||
Portfolio turnover rate
|
46 | % | 48 | %(d) |
(a)
|
Class I commenced operations on September 16, 2010.
|
(b)
|
Calculated using the average shares outstanding for the period.
|
(c)
|
Total return is a measure of the change in value of an investment in the Fund over the period covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
(d)
|
Not annualized.
|
(e)
|
Annualized.
|
53 |
ISI Strategy Fund
|
|
Years Ended October 31,
|
|||||||||||||||||||
|
2011
|
2010
|
2009
|
2008
|
2007
|
|||||||||||||||
Net asset value at beginning of year
|
$ | 12.28 | $ | 10.64 | $ | 9.63 | $ | 14.82 | $ | 13.54 | ||||||||||
Income (loss) from investment operations:
|
||||||||||||||||||||
Net investment income(a)
|
0.15 | 0.16 | 0.11 | 0.13 | 0.17 | |||||||||||||||
Net realized and unrealized gains (losses) on investments
|
0.35 | 1.64 | 1.02 | (4.39 | ) | 1.65 | ||||||||||||||
Total from investment operations
|
0.50 | 1.80 | 1.13 | (4.26 | ) | 1.82 | ||||||||||||||
Less distributions:
|
||||||||||||||||||||
Dividends from net investment income
|
(0.15 | ) | (0.16 | ) | (0.12 | ) | (0.13 | ) | (0.17 | ) | ||||||||||
Distributions from net realized gains
|
— | — | — | (0.80 | ) | (0.37 | ) | |||||||||||||
Total distributions
|
(0.15 | ) | (0.16 | ) | (0.12 | ) | (0.93 | ) | (0.54 | ) | ||||||||||
Net asset value at end of year
|
$ | 12.63 | $ | 12.28 | $ | 10.64 | $ | 9.63 | $ | 14.82 | ||||||||||
TOTAL RETURN(b)
|
4.03 | % | 17.05 | % | 11.84 | % | (30.49 | )% | 13.79 | % | ||||||||||
Net assets at end of year (000's)
|
$ | 57,261 | $ | 60,445 | $ | 53,731 | $ | 53,245 | $ | 80,535 | ||||||||||
Ratio of expenses to average net assets
|
1.04 | % | 1.06 | % | 1.10 | % | 0.99 | % | 0.96 | % | ||||||||||
Ratio of net investment income to average net assets
|
1.12 | % | 1.40 | % | 1.19 | % | 1.02 | % | 1.21 | % | ||||||||||
Portfolio turnover rate
|
50 | % | 38 | % | 55 | % | 42 | % | 62 | % |
(a)
|
Calculated using the average shares outstanding for the year.
|
(b)
|
Total return is a measure of the change in value of an investment in the Fund over the year covered, which assumes any dividends or capital gains distributions are reinvested in shares of the Fund. Returns shown do not reflect the deduction of taxes a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
54 |
ISI Funds
|
A.
|
Organization
|
B.
|
Valuation of Securities
|
55 |
ISI Funds
|
56 |
ISI Funds
|
Total Return
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
US Treasury Obligations
|
$ | — | $ | 76,052,180 | $ | — | $ | 76,052,180 | ||||||||
Repurchase Agreements
|
— | 8,152,000 | — | 8,152,000 | ||||||||||||
Total
|
$ | — | $ | 84,204,180 | $ | — | $ | 84,204,180 | ||||||||
Managed Municipal
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Municipal Bonds
|
$ | — | $ | 100,503,545 | $ | — | $ | 100,503,545 | ||||||||
US Treasury Obligations
|
— | 5,010,355 | — | 5,010,355 | ||||||||||||
Repurchase Agreements
|
— | 1,467,000 | — | 1,467,000 | ||||||||||||
Total
|
$ | — | $ | 106,980,900 | $ | — | $ | 106,980,900 | ||||||||
North American
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Canadian Securities
|
$ | — | $ | 27,154,047 | $ | — | $ | 27,154,047 | ||||||||
Mexican Securities
|
— | 17,265,288 | — | 17,265,288 | ||||||||||||
US Treasury Obligations
|
— | 96,853,094 | — | 96,853,094 | ||||||||||||
Repurchase Agreements
|
— | 4,817,000 | — | 4,817,000 | ||||||||||||
Total
|
$ | — | $ | 146,089,429 | $ | — | $ | 146,089,429 | ||||||||
57 |
ISI Funds
|
Strategy
|
||||||||||||||||
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Common Stocks
|
$ | 54,074,331 | $ | — | $ | — | $ | 54,074,331 | ||||||||
US Treasury Obligations
|
— | 2,950,860 | — | 2,950,860 | ||||||||||||
Repurchase Agreements
|
— | 284,000 | — | 284,000 | ||||||||||||
Total
|
$ | 54,074,331 | $ | 3,234,860 | $ | — | $ | 57,309,191 |
C.
|
Securities Transactions and Investment Income
|
D.
|
Distributions
|
E.
|
Federal Income Taxes
|
58 |
ISI Funds
|
F.
|
Foreign Currency Translation
|
G.
|
Forward Foreign Currency Contracts
|
H.
|
Repurchase Agreements
|
59 |
ISI Funds
|
I.
|
Estimates
|
60 |
ISI Funds
|
61 |
ISI Funds
|
Ordinary
Income
|
Tax-Exempt
Income
|
Long-Term
Capital Gains
|
||||||||||||||||||||||
October 31, 2011
|
October 31, 2010
|
October 31, 2011
|
October 31, 2010
|
October 31, 2011
|
October 31, 2010
|
|||||||||||||||||||
Total Return
|
$ | 1,683,591 | * | $ | 3,775,835 | $ | — | $ | — | $ | 1,949 | $ | 3,373,923 | |||||||||||
Managed Municipal
|
147,216 | 25,543 | 2,802,639 | 3,053,007 | 594,262 | 345,235 | ||||||||||||||||||
North American
|
3,976,050 | * | 5,420,092 | — | — | 5,741 | 1,838,648 | |||||||||||||||||
Strategy
|
707,064 | 809,407 | — | — | — | — |
*
|
A portion of the ordinary income is short-term gains that are taxed as ordinary income for tax purposes.
|
62 |
ISI Funds
|
Total
Return
|
Managed
Municipal
|
North
American
|
Strategy
|
|||||||||||||
Undistributed ordinary income
|
$ | 259,329 | $ | 765 | $ | 149,493 | $ | 45,386 | ||||||||
Undistributed tax-exempt income
|
— | 112,141 | — | — | ||||||||||||
Accumulated undistributed
long-term capital gains |
1,046,872 | — | 278,187 | — | ||||||||||||
Capital loss carryforwards
|
— | (41,257 | ) | — | (3,372,174 | ) | ||||||||||
Net unrealized appreciation
(depreciation) |
5,059,179 | 4,610,103 | 6,384,028 | 8,891,965 | ||||||||||||
Other temporary differences
|
(39,558 | ) | (112,216 | ) | (124,437 | ) | — | |||||||||
Total
|
$ | 6,325,822 | $ | 4,569,536 | $ | 6,687,271 | $ | 5,565,177 |
Fund
|
Undistributed Net Investment Income/(Loss)
|
Accumulated Net Realized Gain/(Loss)
|
Paid-in Capital
|
|||||||||
Total Return US Treasury Fund
|
$ | — | $ | — | $ | — | ||||||
Managed Municipal Fund
|
— | — | — | |||||||||
North American Government Bond Fund
|
144,921 | (144,921 | ) | — | ||||||||
ISI Strategy Fund
|
35,863 | (35,863 | ) | — |
63 |
ISI Funds
|
|
Non-US Government Obligations
|
US Government Obligations
|
||||||||||||||
|
Purchases
|
Sales
|
Purchases
|
Sales
|
||||||||||||
Total Return
|
$ | — | $ | — | $ | 38,086,859 | $ | 53,301,789 | ||||||||
Managed Municipal
|
11,594,883 | 10,069,861 | 5,013,477 | -- | ||||||||||||
North American
|
9,465,343 | 11,817,763 | 55,797,457 | 64,874,750 | ||||||||||||
Strategy
|
29,702,762 | 25,918,500 | 800,625 | 4,816,641 |
64 |
Report of Independent Registered Public Accounting Firm
|
BBD, LLP |
65 |
Fund Directors and Officers (Unaudited)
|
Name and Age
|
Length of
Time Served
|
Business Experience During
the Past Five Years
|
Other
Directorships
Held By Director
|
Independent Directors
|
|||
W. Murray Jacques
(age 75)
|
since 2002
|
President, WMJ Consulting, LLC (real estate investment management company) (1999 to present); formerly, Principal of CM Coastal Development, LLC (real estate development) (2002 to 2006).
|
None
|
Louis E. Levy
(age 79)
|
since 1994
|
Retired Partner, KPMG Peat Marwick (retired 1990); Scudder Group of Mutual Funds (retired 2005).
|
None
|
Edward A. Kuczmarski
(age 62)
|
since 2007
|
Certified Public Accountant and Partner of Crowe Horwath LLP (accounting firm) (1980 to present).
|
Board Member of Reich & Tang Funds; Board Member of Brookfield Investment Management Funds; Trustee of Empire Builder Tax Free Bond Fund.
|
Interested Director
|
|||
R. Alan Medaugh*
(age 68)
President and
Director
|
President
since 1991;
Director
since 2007
|
President, International Strategy & Investment, Inc. (registered investment advisor) (1991 to present). Director, International Strategy & Investment Group, Inc. (registered broker-dealer) (1991 to present).
|
None
|
*
|
Mr. Medaugh is deemed to be an Interested Director, as defined in the Investment Company Act of 1940, because he is President of ISI and a Director of ISI Group.
|
66 |
Fund Directors and Officers (Unaudited) (continued)
|
Name and Age
|
Length of
Time Served
|
Business Experience During
the Past Five Years
|
Executive Officers
|
||
Nancy Lazar
(age 54)
Vice President
|
since 1997
|
Executive Vice President, Assistant Treasurer, and Secretary of International Strategy & Investment, Inc. (registered investment advisor) (1991 to present); Executive Vice President, Assistant Treasurer and Secretary of International Strategy & Investment Group, Inc. (registered broker-dealer) (1991 to present).
|
Thomas D. Stevens*
(age 62)
Vice President
|
since 1997
|
Chairman and President, Los Angeles Capital Management and Equity Research, Inc. (registered investment advisor) (March 2002 to present).
|
Carrie L. Butler
(age 44)
Vice President
|
since 1991
|
Managing Director, International Strategy & Investment, Inc. (registered investment advisor) (2000 to present).
|
Edward J. Veilleux
(age 68)
Vice President and
Chief Compliance
Officer
|
Vice President since 1992; Chief Compliance Officer since 2008
|
President, EJV Financial Services, LLC (2002 to present); Officer of various investment companies for which EJV Financial Services provides consulting and compliance services.
|
Stephen V. Killorin
(age 58)
Chief Financial Officer,
Treasurer and
Vice President
|
Vice President since 2002; Chief Financial Officer since 2005; and Treasurer 2005 to 2008 and August 2010 to present
|
Executive Managing Director and Chief Financial Officer of International Strategy & Investment, Inc. (registered investment advisor) (2000 to present); Executive Managing Director and Chief Financial Officer of International Strategy & Investment Group, Inc. (registered broker-dealer) (2000 to present); Vice President of the Funds since 2002; Treasurer of the Funds (2005 to 2008 and August 2010 to present); Chief Financial Officer of the Funds since 2005; formerly, Chief Compliance Officer of the Funds (until April 2008).
|
Margaret M. Beeler
(age 44)
Vice President and
Secretary
|
Vice President since 1996; Secretary since 2004
|
Managing Director, International Strategy & Investment, Inc. (registered investment advisor) (July 2004 to present).
|
William Cox
(age 44)
Assistant Treasurer
State Street Bank and
Trust Company
4 Copley Place, 5th floor
Boston, MA 02116
|
since 2010
|
Vice President and Department Head, Fund Administration Division, State Street Bank and Trust Company (2003 to present) and officer of various investment companies for which State Street provides mutual fund administrative services.
|
*
|
Thomas D. Stevens is an officer for only the ISI Strategy Fund.
|
67 |
Fund Directors and Officers (Unaudited) (continued)
|
Name and Age
|
Length of
Time Served
|
Business Experience During
the Past Five Years
|
Executive Officers (Continued)
|
||
David James
(age 40)
Assistant Secretary
State Street Bank and
Trust Company
4 Copley Place, 5th floor
Boston, MA 02116
|
since 2010
|
Vice President and Managing Counsel, State Street Bank and Trust Company (fund administrator, transfer agent and custodian) (2009 to present); Vice President and Counsel, PNC Global Investment Servicing (US), Inc. (2006 to 2009); Assistant Vice President and Counsel, State Street Bank and Trust Company, October 2000 to December 2004 and was retired in 2005; and officer of various investment companies for which State Street provides mutual fund administrative services.
|
Eun An
(age 35)
Assistant Secretary
State Street Bank and
Trust Company
4 Copley Place, 5th floor
Boston, MA 02116
|
since 2011
|
Assistant Counsel and Assistant Vice President, State Street Bank and Trust Company (2008 to present).
|
Heena Dhruv
(age 35)
Assistant Vice President
|
since 2005
|
Managing Director, International Strategy & Investment, Inc. (registered investment advisor) (2005 to present); formerly, Associate Managing Director, International Strategy & Investment, Inc. (January 2003 to July 2005).
|
68 |
Notice to Shareholders (Unaudited)
|
69 |
Notice to Shareholders (Unaudited) (continued)
|
70 |
Investment Advisory Agreement Approval (Unaudited)
|
|
•
|
Total Return. The Board reviewed the investment objective of the Fund and the information comparing the Fund’s performance to the returns of relevant indices for selected periods ended July 29, 2011. The Board noted that the Fund returned 2.92% during the one-year period ended July 29, 2011, underperforming the Barclays U.S. Treasury Total Return Index, which returned 3.39%, and the CDA/Lipper U.S. Treasury Funds Average, which returned 4.49%, during the same period. The Board indicated that the Fund’s benchmark index and peer groups, including the Morningstar Intermediate Government Average, do not provide a precise comparison because the Fund’s composition differs from the benchmark and its peer groups. The Board compared the Fund’s returns against its benchmark and peer groups over longer-term periods and concluded that the results achieved by the Fund demonstrated a consistent pattern of favorable performance.
|
71 |
Investment Advisory Agreement Approval (Unaudited)
(continued)
|
|
•
|
Managed Municipal. The Board reviewed the investment objective of the Fund and the Fund’s performance for selected periods ended July 29, 2011. The Board noted that the Fund returned 1.61% during the one-year period ended July 29, 2011, underperforming the Barclays AAA High Quality Index, which returned 2.52%, and the CDA/Lipper General Municipal Debt Funds Average, which returned 2.42%, during the same period. The Board indicated that the Fund’s benchmark index and peer groups, including the Morningstar Municipal National Intermediate Average, do not provide a precise comparison because the Fund’s composition differs from the benchmark and its peer groups. The Board noted that the Fund’s benchmark was more heavily weighted in intermediate-term bonds than the Fund. The Board also took into consideration the high credit qualities of the portfolio securities held by the Fund, which invests exclusively in high quality municipal securities bonds. The Board compared the Fund’s returns against its benchmark and peer groups over longer-term periods and concluded that the Fund’s performance was in line with expectations, particularly given the tumultuous macroeconomic environment.
|
|
•
|
North American. The Board reviewed the investment objective of the Fund and the Fund’s performance for selected periods ended July 29, 2011. The Board noted that the Fund returned 5.32% during the one-year period ended July 29. 2011, underperforming the blended North American Index which returned 6.15%, but outperformed the CDA/Lipper U.S. Government Funds Average, which returned 3.53%, during the same period. The Board indicated that the Fund’s blended benchmark index and peer groups, including the Morningstar Intermediate Term Bond Average, do not provide a precise comparison because the Fund’s composition differs from the blended benchmark and its peer groups, noting in particular that the peer groups is limited to U.S. Government securities, whereas the Fund invests in a much more diverse universe of North American government bonds. The Board also took into consideration the high credit qualities of the portfolio securities held by the Fund. The Board compared the Fund’s returns against its benchmark and peer groups over longer-term periods and concluded that the Fund’s performance was in line with expectations, particularly given the tumultuous macroeconomic environment.
|
|
•
|
Strategy. The Board reviewed the investment objective of the Fund and the Fund’s performance for selected periods ended July 29, 2011. The Board noted that the Fund returned 15.58% during the one-year period ended July 29, 2011, underperforming the blended 80% Wilshire 5000/20% Barclays Treasury Index, which returned 17.17%, but outperformed the CDA/Lipper Flexible Portfolio Funds Average, which returned 14.11%, during the same period. The Board indicated that the Fund’s blended benchmark index and peer groups, including the Morningstar Large Blend Average, do not provide a precise comparison because the Fund’s composition differs from the blended benchmark and its peer groups. The Board took into consideration the high credit qualities of the portfolio securities held by the Fund
|
72 |
Investment Advisory Agreement Approval (Unaudited)
(continued)
|
|
and the Fund’s 90% exposure to equities, compared to the blended index’s 80% exposure. The Board compared the Fund’s returns against its benchmark and peer groups over longer-term periods and concluded that Fund’s performance was in line with expectations, particularly given the tumultuous macroeconomic environment.
|
73 |
Investment Advisory Agreement Approval (Unaudited)
(continued)
|
|
•
|
Total Return. The Board found the Fund’s total expense ratio of 0.85% was below the average total expense ratio of comparably managed funds, which was 0.93%.
|
|
•
|
Managed Municipal. The Board found the Fund’s total expense ratio of 0.99% was slightly above the average total expense ratio of comparably managed funds, which was 0.92%. The Board noted that the total net assets of the Fund ($106 million) was well below the size of the average comparably managed fund ($316 million).
|
|
•
|
North American. The Board found the Fund’s total expense ratio of 1.18% was slightly above the average total expense ratio of other government bond funds, which was 1.07%. The Board noted that the total net assets of the Fund ($145 million) is also slightly smaller than the size of the average other government bond fund ($160 million). The Board concluded that because no other mutual fund shares the Fund’s focus of investing exclusively in a diversified portfolio of North American government bonds, at this time, the total expense ratios of other government bond funds do not provide the appropriate counterpoints for comparative purposes.
|
|
•
|
Strategy. The Board found that Fund’s total expense ratio of 1.04% was below the average total expense ratio of comparably managed funds, which was 1.19%. The Board noted that the total net assets of the Fund ($63 million) were well below the size of the average comparably managed fund ($194 million).
|
74 |
Louis E. Levy
Chairman
|
Edward J. Veilleux
Vice President
Chief Compliance Officer
|
||||
W. Murray Jacques
Director
|
Thomas D. Stevens*
Vice President
|
||||
Edward A. Kuczmarski
Director
|
Stephen V. Killorin
Vice President
Treasurer
|
||||
R. Alan Medaugh
President
Director
|
Margaret M. Beeler
Vice President
Secretary
|
||||
Nancy Lazar
Vice President
|
Edward S. Hyman
Senior Economic Advisor
|
||||
Carrie L. Butler
Vice President
|
* |
Thomas D. Stevens is an officer
for only the ISI Strategy Fund.
|
|||
Investment Advisor | |||||
ISI, Inc.
40 West 57th Street, 18th Floor
New York, NY 10019
(800) 955-7175
|
|||||
Shareholder Servicing Agent | |||||
State Street Bank & Trust Company
One Lincoln Street
Boston, MA 02111
|
|||||
Distributor | |||||
ISI Group, Inc.
40 West 57th Street, 18th Floor
New York, NY 10019
(800) 955-7175
|
|||||
Item 2.
|
Code of Ethics.
|
Item 3.
|
Audit Committee Financial Expert.
|
Item 4.
|
Principal Accountant Fees and Services.
|
|
(a)
|
Audit Fees. The aggregate fees billed for professional services rendered by BBD, LLP, the Fund’s principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by BBD, LLP in connection with the Fund’s statutory and regulatory filings or engagements were $20,500 and $20,500 with respect to the registrant’s fiscal years ended October 31, 2011 and 2010, respectively.
|
|
(b)
|
Audit-Related Fees. No fees were billed in either of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item.
|
|
(c)
|
Tax Fees. The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $2,000 and $2,000 with respect to the registrant’s fiscal years ended October 31, 2011 and 2010, respectively. The services comprising these fees are the preparation of the registrant’s federal income and excise tax returns.
|
|
(d)
|
All Other Fees. No fees were billed in either of the last two fiscal years for products and services provided by the principal accountant to the registrant, other than the services reported in paragraphs (a) through (c) of this Item.
|
|
No fees were billed in either of the last two fiscal years] for products and services provided by the principal accountant to International Strategy & Investment Inc., (the “Adviser”) and any entity controlling, controlled by, or under common control with the Adviser that provides ongoing services to the registrant that (i) relate directly to the operations and financial reporting of the registrant and (ii) were pre-approved by the registrant’s audit committee.
|
|
(e)(1)
|
Audit Committee Pre-Approval Policies and Procedures. The Committee, pursuant to the Audit Committee Charter, may delegate to one or more of its members authority to pre-approve permissible non-audit services to be provided to the Registrant. Any pre-approval determination of a delegate shall be presented to the full Committee at its next meeting. The Committee shall similarly pre-approve in advance any audit, review or attest engagements required under the securities laws. Pre-approval shall be granted no earlier than one year prior to the commencement of the service.
|
|
(e)(2)
|
Percentages of Services. None of the services described in paragraph (b) through (d) of this Item were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
|
|
(f)
|
0% of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
|
|
(g)
|
Total Fees Paid By Adviser and Certain Affiliates. During the fiscal years ended October 31, 2011 and 2010, aggregate non-audit fees of $0 and $0, respectively, were billed by the registrant’s accountant for services rendered to the registrant. No non-audit fees were billed in either of the last two fiscal years by the registrant’s accountant for services rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.
|
|
(h)
|
The principal accountant has not provided any non-audit services that were not previously approved to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant.
|
Item 5.
|
Audit Committee of Listed Registrants.
|
Item 6.
|
Schedule of Investments.
|
|
(a)
|
Schedule of Investments is included as part of Item 1 of this Form N-CSR.
|
|
(b)
|
Not applicable
|
Item 7.
|
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
|
Item 8.
|
Portfolio Managers of Closed-End Management Investment Companies.
|
Item 9.
|
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
|
Item 10.
|
Submission of Matters to a Vote of Security Holders.
|
Item 11.
|
Controls and Procedures.
|
Item 12.
|
Exhibits.
|
Exhibit 99.CODE ETH
|
Code of Ethics pursuant to Item 2 of Form N-CSR is attached hereto.
|
Exhibit 99.CERT
|
Certifications of principal executive officer and principal financial and accounting officer of the registrant as required by Rule 30a-2(a) under the 1940 Act are attached hereto.
|
Exhibit 99.906CERT
|
Certifications of principal executive officer and principal financial and accounting officer of the registrant as required by Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.
|
By
|
/s/ R. Alan Medaugh
|
|
R. Alan Medaugh, President
|
||
Date
|
January 9, 2012
|
By
|
/s/ R. Alan Medaugh
|
|
R. Alan Medaugh, President (Principal Executive Officer)
|
||
Date
|
January 9, 2012
|
|
By
|
/s/ Stephen V. Killorin
|
|
Stephen V. Killorin, Treasurer (Principal Financial and Accounting Officer)
|
||
Date
|
January 9, 2012
|
|
I.
|
Covered Officers/Purpose of the Code
|
|
·
|
honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
|
|
·
|
full, fair, accurate, timely and understandable disclosure in reports and documents that a Fund files with, or submits to, the Securities and Exchange Commission (“SEC”) and in other public communications made by the Fund;
|
|
·
|
compliance with applicable laws and governmental rules and regulations;
|
|
·
|
the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and
|
|
·
|
accountability for adherence to the Code.
|
II.
|
Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest
|
|
·
|
use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Fund whereby the Covered Officer would benefit personally to the detriment of the Fund;
|
|
·
|
cause the Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fund; or
|
|
·
|
retaliate against any other Covered Officer or any employee of the Funds or their service providers for reports of potential violations that are made in good faith.
|
|
·
|
service on the board of directors or governing board of a publicly traded entity;
|
|
·
|
the receipt of any non-nominal gifts from persons or entities who have or are seeking business relationships with any Fund;
|
|
·
|
the receipt of any entertainment from any company with which the Fund has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety;
|
|
·
|
any ownership interest in, or any consulting or employment relationship with, any entities doing business with the Fund, other than the Advisor or another service provider or their respective affiliates. This restriction shall not apply to or otherwise limit the ownership of publicly traded securities so long as the Covered Person’s ownership does not exceed more than 2% of the outstanding securities of the relevant class.
|
|
·
|
a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer’s employment with the Advisor, the Fund’s principal underwriter or their respective affiliates. This restriction shall not apply to or otherwise limit (i) the ownership of publicly traded securities so long as the Covered Person’s ownership does not exceed more than 2% of the particular class of security outstanding or (ii) the receipt by the Advisor or an affiliate of research or other benefits in exchange for “soft dollars.”
|
III.
|
Disclosure and Compliance
|
|
·
|
Each Covered Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Fund;
|
|
·
|
each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Fund to others, whether within or outside the Fund, including to the Fund’s Board and auditors, and to governmental regulators and self-regulatory organizations;
|
|
·
|
each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Funds and the Advisor and, as applicable, other service providers with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and
|
|
·
|
it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.
|
IV.
|
Reporting and Accountability
|
|
·
|
upon adoption of this Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Fund that he or she has received, read and understands the Code;
|
|
·
|
annually thereafter affirm to the Fund that he or she has complied with the requirements of the Code;
|
|
·
|
provide full and fair responses to all questions asked in the Fund’s periodic Director and Officer Questionnaire as well as with respect to any supplemental request for information; and
|
|
·
|
notify the President of the Fund promptly if he or she knows of any violation of this Code (with respect to violations by a President, the Covered Officer shall report to the chairman of the Fund’s Audit and Compliance Committee (the “Committee”)). Failure to do so is itself a violation of this Code.
|
|
·
|
the President will take all appropriate action to investigate any potential violations reported to him, which may include the use of internal or external counsel, accountants or other personnel;
|
|
·
|
if, after such investigation, the President believes that no violation has occurred, the President is not required to take any further action;
|
|
·
|
any matter that the President believes is a violation will be reported to the Committee;
|
|
·
|
if the Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the Advisor or its board; or a recommendation to dismiss the Covered Officer;
|
|
·
|
the Committee will be authorized to grant waivers, as it deems appropriate; and
|
|
·
|
any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.
|
V.
|
Other Policies and Procedures
|
VI.
|
Amendments
|
VII.
|
Confidentiality
|
VIII.
|
Internal Use
|
Fund
|
Principal
Executive
Officer
|
Principal
Financial
Officer
|
Principal
Accounting Officer |
Total Return
|
R. Alan Medaugh
|
Stephen V. Killorin
|
Stephen V. Killorin
|
Managed Municipal
|
R. Alan Medaugh
|
Stephen V. Killorin
|
Stephen V. Killorin
|
North American
|
R. Alan Medaugh
|
Stephen V. Killorin
|
Stephen V. Killorin
|
Strategy
|
R. Alan Medaugh
|
Stephen V. Killorin
|
Stephen V. Killorin
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Date: January 9, 2012
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/s/ R. Alan Medaugh
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R. Alan Medaugh, President (Principal Executive Officer) of North American Government Bond Fund, Inc.
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Date: January 9, 2012
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/s/ Stephen V. Killorin
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Stephen V. Killorin, Treasurer (Principal Financial and Accounting Officer) of North American Government Bond Fund, Inc.
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1.
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This Form N-CSR filing for the registrant for the period ended October 31, 2011 (the “Report”) fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934, as amended; and
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2.
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.
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/s/ R. Alan Medaugh
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R. Alan Medaugh
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President (Principal Executive Officer) of North American Government Bond Fund, Inc.
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Date: January 9, 2012
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/s/ Stephen V. Killorin
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Stephen V. Killorin
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Treasurer (Principal Financial and Accounting Officer) of North American Government Bond Fund, Inc.
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Date: January 9, 2012
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