UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File number: 811-06136
HOMESTEAD FUNDS, INC.
(Exact name of registrant as specified in charter)
4301 Wilson Boulevard
Arlington, VA 22203
(Address of principal executive office – Zip code)
Arlington, VA 22203
(Address of principal executive office – Zip code)
Kelly Bowers Whetstone, Esq.
Homestead Funds, Inc.
4301 Wilson Boulevard
Arlington, VA 22203
(Name and address of agent for service)
Homestead Funds, Inc.
4301 Wilson Boulevard
Arlington, VA 22203
(Name and address of agent for service)
Copies to:
Bibb L. Strench, Esq.
Seward & Kissel LLP
1200 G Street N.W.
Washington, DC 20005
(Name and addresses of agent for service)
Bibb L. Strench, Esq.
Seward & Kissel LLP
1200 G Street N.W.
Washington, DC 20005
(Name and addresses of agent for service)
Registrant’s telephone number, including area code: (703) 907-5953
Date of fiscal year end: December 31
Date of reporting period: June 30, 2011
August 22, 2011
Dear Shareholder:
As you’ll read in the enclosed report, stock prices rose during the period, finishing the six months with a 6.02% gain, as represented by the Standard & Poor’s 500 Stock Index. Bond markets, responding to lower interest rates, also posted gains. Stubbornly high unemployment and sustained weakness in housing helped to keep interest rates in check.
A brief look at the capital markets shortly before this report went to print reveals several crosscurrents at work, each having already shown the ability to weigh heavily on stock and bond prices. The debt ceiling agreement reached in Washington in August did little to satisfy investors. Instead, it triggered fears that future budget cuts could harm economic growth and, perhaps more importantly, prompted a downgrade of U.S. and some U.S.-related debt by Standard & Poor’s, which criticized the deal as insufficient. Also, Federal Reserve policy left some investors concerned about higher inflation and a weaker dollar. Add to this the European debt situation, and investors are left in a climate of uncertainty. We believe, however, that even in an environment like this one, market fundamentals will overcome the fear and uncertainty associated with steep market declines. First, corporate profits are strong, up more than 10% from last year. Additionally, balance sheets are much improved, and large cash balances are allowing companies to increase dividends and to buy back stock. Stock prices in the aggregate seem very reasonable.
History shows that economic forecasting is a risky enterprise, even when the market environment provides greater clarity than the one we currently face. We do know, however, that businesses will adapt and adjust to changes in this environment. As this happens, we remain steadfast in our commitment to uncover those companies that represent good longterm investments for our shareholders.
The financial markets’ swings can serve as a reminder to check your overall asset allocation, a must in all market environments, but especially during more uncertain times. Homestead Funds’ representatives can help you keep your portfolio in line with your financial goals and risk tolerance. Please give them a call at 1-800-258-3030 between the hours of 8:30 am and 5:00 pm, ET.
Sincerely,
Peter R. Morris
President and Director
President and Director
Must be preceded or accompanied by a prospectus. RE Investment Corporation, Distributor: 8/11
Item 1. Reports to Stockholders
Daily Income Fund (HDIXX)
Short-Term Government Securities Fund (HOSGX)
Short-Term Bond Fund (HOSBX)
Stock Index Fund (HSTIX)
Value Fund (HOVLX)
Growth Fund (HNASX)
Small-Company Stock Fund (HSCSX)
International Value Fund (HISIX)
JUNE 30,
2011
semi-annual report
Table of Contents
PERFORMANCE EVALUATION | ||||
Daily Income Fund | 2 | |||
Short-Term Government Securities Fund and Short-Term Bond Fund | 4 | |||
Stock Index Fund | 8 | |||
Value Fund | 10 | |||
Growth Fund | 12 | |||
Small-Company Stock Fund | 14 | |||
International Value Fund | 16 | |||
EXPENSE EXAMPLE | 18 | |||
REGULATORY AND SHAREHOLDER MATTERS | 20 | |||
PORTFOLIO OF INVESTMENTS | ||||
Daily Income Fund | 21 | |||
Short-Term Government Securities Fund | 23 | |||
Short-Term Bond Fund | 27 | |||
Stock Index Fund | 37 | |||
Value Fund | 38 | |||
Growth Fund | 39 | |||
Small-Company Stock Fund | 41 | |||
International Value Fund | 42 | |||
STATEMENTS OF ASSETS AND LIABILITIES | 44 | |||
STATEMENTS OF OPERATIONS | 46 | |||
STATEMENTS OF CHANGES IN NET ASSETS | 48 | |||
FINANCIAL HIGHLIGHTS | ||||
Daily Income Fund | 50 | |||
Short-Term Government Securities Fund | 51 | |||
Short-Term Bond Fund | 52 | |||
Stock Index Fund | 53 | |||
Value Fund | 54 | |||
Growth Fund | 55 | |||
Small-Company Stock Fund | 56 | |||
International Value Fund | 57 | |||
NOTES TO FINANCIAL STATEMENTS | 58 | |||
DIRECTORS AND OFFICERS | 62 | |||
APPENDIX—S&P 500 STOCK MASTER PORTFOLIO | 63 |
The investment commentaries on the following pages were prepared for each fund by its portfolio manager. The views expressed are those of the portfolio manager for each fund as of June 30, 2011, and may have changed since that date. The opinions stated may contain forward-looking statements and may discuss the impact of domestic and foreign markets, industry and economic trends and governmental regulations of the funds and their holdings. Such statements are subject to uncertainty, and the impact on the funds might be materially different from what is described here.
PERFORMANCE EVALUATION
Daily Income Fund
MARKET CONDITIONS
During the first half of 2011, the Federal Reserve maintained its policy of historically low short-term interest rates, a policy which was established in December 2008 with the goal of stimulating economic activity. The target rate for federal funds was held at a range of 0.00% to 0.25%.
As the first half of the year unfolded, optimism about a strengthening economy gave way to a concern that the economy had begun to slow. Contributing to the initial optimism, weekly initial jobless claims continued to show declines until early April, falling to 385,000. However, jobless claims since then have been in excess of 400,000, signaling weaker job growth. The unemployment rate rose during the period, and consistent with other indicators of slowing growth, first quarter gross domestic product (GDP) growth came in at 1.9%, significantly below growth of 3.1% for the fourth quarter of 2010. Given signs of a slowdown, many economists are lowering their forecasts for full-year 2011 GDP growth.
FUND PERFORMANCE
The Daily Income Fund earned a total return of 0.01% on an annualized basis for the first half of 2011. The seven-day effective annualized yield was 0.01% at June 30, 2011, unchanged from the end of the previous year. With interest income at historic lows, RE Advisers continues to waive fees and/or reimburse expenses to assist the Fund in maintaining a positive yield. As long as the Federal Reserve continues to maintain a federal funds rate close to zero, the Daily Income Fund will continue to earn very little interest income.
OUTLOOK
Halfway through 2011, we believe that the economy may improve in the second half of the year. The Federal Reserve has continued to be cautious and has maintained interest rates at accommodative levels. The Federal Reserve also continues to anticipate a low federal funds rate for an extended period. Until economic growth improves and interest rates rise, investors in the Daily Income Fund can anticipate a stable share price but very little investment return.
2 | Performance Evaluation |
Daily Income Fund
AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Year | 10 Year | |||||||||
periods ended 06/30/11 | ||||||||||||
Daily Income Fund | 0.01% | 1.87 | % | 1.76 | % | |||||||
The returns quoted in the above table represent past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment may be worth more or less than its original cost. An investment in the Daily Income Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. While the Daily Income Fund seeks to maintain a constant $1.00 per share price, it is possible to lose money by investing in the Fund. The Daily Income Fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do no reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares.
YIELD | ||||||||||||
Annualized 7-day effective yield quoted 06/30/11 | 0.01 | % | ||||||||||
SECURITY DIVERSIFICATION | on 12/31/10 | on 06/30/11 | ||||||||||
(% of total investments) | ||||||||||||
Commercial paper | 71.9 | % | 67.0 | % | ||||||||
U.S. Government obligations | 21.8 | % | 21.6 | % | ||||||||
Corporate bonds | 2.3 | % | 1.9 | % | ||||||||
Short-term and other assets | 4.0 | % | 9.5 | % | ||||||||
Total | 100.0 | % | 100.0 | % | ||||||||
MATURITY | on 12/31/10 | on 06/30/11 | ||||||||||
Average Weighted Maturity | 48 days | 47 days | ||||||||||
Performance Evaluation | 3 |
PERFORMANCE EVALUATION
Short-Term Government Securities Fund and
Short-Term Bond Fund
MARKET CONDITIONS
The bond market registered a modest positive return during the period. This came as many of the impactful issues of last year continued to affect the market in the first half of 2011, along with some new disturbing developments. Old issues include the Federal Reserve’s continuation of a near-zero short-term interest rate policy, housing market weakness, high unemployment, Eurozone sovereign debt woes, fears of a Chinese “hard landing,” rising commodity prices and inflationary expectations—all of which took place as an end came to record federal fiscal stimulus, adversely affecting state and local government finances. New issues include the Japanese earthquake and tsunami, which, at a minimum, led to a disruption of auto production and is at least partially responsible for the recent downgrades of the Federal Reserve’s growth forecasts for the remainder of 2011 and for 2012. Political unrest in the Middle East put upward pressure on oil prices, resulting in $4 per gallon gasoline, which seemingly sapped some strength from consumer spending. The end of the Federal Reserve’s $600 billion U.S. Treasury Bond buying program (otherwise known as “QE2”) makes the U.S. Treasury’s financing somewhat more problematic as the market’s largest buyer steps away. Perhaps the largest concern is the seeming inability of elected officials to agree on a credible plan to both reduce the deficit and to raise the debt ceiling in time to ward off a potential U.S. Treasury default. According to Moody’s Investors Service, the lack of meaningful progress in negotiations to raise the debt limit raised the probability of default from de minimis to low, resulting in the credit rating agency placing the government’s AAA debt rating on review for a possible downgrade.
Of all the problems facing the economy, unemployment is at the top of the list, not only as a serious social issue but as a factor in economic growth. While the June unemployment rate of 9.2% is below the October 2009 peak of 10.1%, it is still well above the 6.3% average of the last 10 years. Employment needs to increase by approximately 6.9 million to attain pre-recession levels. While job news over the last few months has been particularly discouraging, initial unemployment claims and most regional manufacturing surveys suggest better employment conditions are on the horizon. In spite of weak employment growth, retail sales in June stood 8.1% higher than one year ago, with domestic auto sales averaging 12.6 million in 2011 versus 11.6 million in 2010. While industrial production in June was 3.4% higher year-over-year, production levels are still 7.5% below pre-recession levels. Existing home sales are running at a 5.0 million annual rate in 2011, up slightly from 2010’s 4.9 million rate, but again well below the average 10-year rate of 5.8 million.
Consumer confidence as measured by the Conference Board has averaged 64.5 so far in 2011, compared to 54.5 in 2010, yet well below the 10-year average of 82.4. Consumers continue to worry about their personal financial conditions, but plans to purchase autos, homes and major appliances in six months are sharply above year-ago levels thanks to improvement in the consumer’s balance sheet and product obsolescence. The May 2011 savings rate stood at 5.0%, compared to 2010’s 5.8% average, further evidence of the consumer’s improved mood. While the June 2011 Consumer Price Index was 3.6% higher than a year ago and well above the 1.5% increase for 2010, this increase was not unexpected given the Federal Reserve’s massive liquidity injection and sharp increases in commodity prices.
The Federal Reserve’s policymaking committee, the Federal Open Market Committee (FOMC), continues to maintain its federal funds target rate in a range of 0.00% to 0.25%. At the June 22-23 FOMC meeting, the Fed maintained its position that short-term rates would be kept low for an “extended period” as the economic recovery had slowed more than expected. The FOMC also maintained that with unemployment still unacceptably high, monetary policy needed to remain accommodative. Although inflation had moved higher, the
4 | Performance Evaluation |
prevailing thought was that inflation would recede as commodity pressures lessened. Some FOMC members discussed the possibility of ending monetary accommodation sooner than expected if inflation persists. The FOMC did lay out steps for eventual monetary tightening, which will start with: 1) ceasing the reinvestment of principal on securities holdings; 2) removing the “extended period” language from policy statements; 3) initiating temporary reserve draining operations; and 4) hiking the federal funds target rate. Chairman Ben Bernanke outlined the case for additional Federal Reserve stimulus during his semi-annual Monetary Policy report to Congress in July. We believe that the hurdle to enact “QE3” seems very high and is unlikely barring renewed severe economic or financial distress.
FUND PERFORMANCE
The Short-Term Government Securities Fund returned 0.91% in the first half of 2011 compared to the benchmark return of 1.51%. Relative underperformance was a result of the Fund’s shorter maturity relative to the benchmark index. While all of the Fund’s sectors contributed positively to first-half performance, none of the sectors particularly stood out.
The Short-Term Bond Fund returned 1.57% in the first half of 2011 compared to the benchmark return of 1.80%. The Fund’s asset-backed securities and municipals were very strong relative performers during the first half, but the mortgage sector was a drag on performance after a very strong 2010. Pronounced weakness was also seen in financial issues with exposure to the European debt crisis in both the corporate and Yankee sectors, with securities tied to Irish banking particularly weak.
OUTLOOK
The economic recovery continues to be sluggish as normal growth remains elusive. Part of this sluggishness can be attributed to the aftereffects of the credit crunch as credit demands remain subpar. Although corporate balance sheets have been repaired, a new capital spending cycle has yet to emerge. Of the many headwinds mentioned earlier, perhaps none is as important as housing. While it may no longer be a drag on gross domestic product, at this juncture in the economic cycle, housing should be a strong contributor to growth. Given tougher mortgage lending standards and the nationwide oversupply of housing inventory, it appears that time may be the only cure for this market. With housing starts currently running at less than 40% of their 20-year average, assuming a resumption of growth in household formations, we believe that this problem should work itself out over the next several years.
The FOMC continues to hold short-term rates at zero, trying to stimulate borrowing with what effectively are “teaser rates,” but it may be hurting economic growth, since savers are ultimately the ones being punished. Given the fact that low short-term rates were partly responsible for the excesses that led to the credit crunch, this ultra-low rate strategy may have unforeseen consequences. In addition, this level of accommodation sends a negative signal regarding the Fed’s view of near-term growth prospects, potentially further depressing economic activity.
Our view is that interest rates are likely to remain low until the economic soft patch passes later this year. We believe that the Fed is on hold for the foreseeable future and will communicate possible changes in monetary policy well in advance of any action. It is our belief that interest rates will ultimately normalize at significantly higher levels, but this will wait until the economy is on a much firmer footing with significantly lower unemployment, an event which seems fairly unlikely until well into 2012.
Performance Evaluation | 5 |
Short-Term Government Securities Fund
AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Year | 10 Year | |||||||||
periods ended 06/30/11 | ||||||||||||
Short-Term Government Securities Fund | 1.60% | 3.93 | % | 3.22 | % | |||||||
BofA Merrill Lynch 1-5 Year U.S. Treasury Index | 2.16% | 5.05 | % | 4.24 | % | |||||||
SECURITY DIVERSIFICATION | on 12/31/10 | on 06/30/11 | ||||||||||
(% of total investments) | ||||||||||||
Government-guaranteed agencies | 47.0 | % | 49.8 | % | ||||||||
U.S. Treasuries | 20.0 | % | 19.9 | % | ||||||||
Corporate bonds | 15.8 | % | 9.5 | % | ||||||||
Mortgage-backed securities | 7.6 | % | 5.5 | % | ||||||||
Municipal bonds | 4.6 | % | 5.4 | % | ||||||||
Asset-backed securities | 3.3 | % | 2.3 | % | ||||||||
Short-term and other assets | 1.7 | % | 7.6 | % | ||||||||
Total | 100.0 | % | 100.0 | % | ||||||||
MATURITY | on 12/31/10 | on 06/30/11 | ||||||||||
Average Weighted Maturity | 2.56 years | 2.37 years | ||||||||||
PERFORMANCE COMPARISON | ||||||||||||
Comparison of the change in value of a $10,000 investment in the Fund and the BofA Merrill Lynch 1-5 Year U.S. Treasury Index made on December 31, 2000.
The returns quoted in the above table and chart represent past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The Short-Term Government Securities Fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares.
6 | Performance Evaluation |
Short-Term Bond Fund
AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Year | 10 Year | |||||||||||
periods ended 06/30/11 | ||||||||||||||
Short-Term Bond Fund | 3.42 | % | 5.41 | % | 4.25 | % | ||||||||
BofA Merrill Lynch 1-5 Year Corp./Gov. Index | 2.96 | % | 5.27 | % | 4.59 | % | ||||||||
SECURITY DIVERSIFICATION | on 12/31/10 | on 06/30/11 | ||||||||||||
(% of total investments) | ||||||||||||||
Corporate bonds | 32.1 | % | 29.7 | % | ||||||||||
Asset-backed securities | 21.1 | % | 17.4 | % | ||||||||||
Municipal bonds | 15.8 | % | 16.8 | % | ||||||||||
Yankee bonds | 9.6 | % | 12.9 | % | ||||||||||
Mortgage-backed securities | 14.0 | % | 10.7 | % | ||||||||||
U.S. Government obligations | 4.8 | % | 7.5 | % | ||||||||||
Short-term and other assets | 2.6 | % | 5.0 | % | ||||||||||
Total | 100.0 | % | 100.0 | % | ||||||||||
MATURITY | on 12/31/10 | on 06/30/11 | ||||||||||||
Average Weighted Maturity | 2.95 years | 2.69 years | ||||||||||||
PERFORMANCE COMPARISON | ||||||||||||||
Comparison of the change in value of a $10,000 investment in the Fund and the BofA Merrill Lynch 1-5 Year Corp./Gov. Index made on December 31, 2000.
The returns quoted in the above table and chart represent past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The Short-Term Bond Fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares.
Performance Evaluation | 7 |
PERFORMANCE EVALUATION
Stock Index Fund
MARKET CONDITIONS
U.S. equity markets began the year on an upswing. Confidence levels were improving, the economy was recovering and investors were increasing their holdings of riskier assets. U.S. stocks moved higher during the first four months of 2011 despite volatility from significant global events. Political turmoil spread across the Middle East/North Africa region, and prices of oil and other commodities rose sharply. March brought devastating natural disasters that left Japan with massive infrastructure damage and a nuclear crisis. In April, Standard & Poor’s changed its ratings outlook for long-term U.S. and Japanese debt from stable to negative. But equity markets charged forward as investors chose to focus on the continuing stream of strong corporate earnings reports.
Meanwhile, longer-term headwinds had been brewing. Inflationary pressures intensified in emerging economies, many of which were overheating, and the European debt crisis was not over. Financial markets were met with a sharp reversal in May when political unrest in Greece pushed the nation closer to defaulting on its debt. This development rekindled fears about the broader sovereign debt crisis in Europe and its further contagion among peripheral countries. Concurrently, it became evident that the pace of U.S. and global economic growth had slowed. The impact of higher oil prices and supply chain disruptions in Japan finally surfaced in weak economic data. Investors pulled back from riskier assets amid heightened uncertainty, and equity markets experienced a correction throughout most of May and June. The last week of June brought a sharp rally on encouraging data from the U.S. manufacturing sector and Germany’s decision to support the refinancing of Greece’s public debt.
INDEX AND FUND PERFORMANCE
For the six months ended June 30, the broad market metric and the Fund’s benchmark, the Standard & Poor’s (S&P) 500 Index returned 6.02%. The S&P 500 Index is a market capitalization-weighted index composed of 500 common stocks issued by large-capitalization companies in a wide range of industries. The stocks included in the index collectively represent a substantial portion of all common stocks publicly traded in the United States.
From a sector perspective, health care stocks (+13.93%) led the index, driven by increased merger and acquisition activity. Energy stocks (+11.39%) benefited from rising oil prices earlier in the period. All other sectors provided positive returns with the exception of financials (−3.06%), where the banking industry remained under pressure amid heightened concerns about the sovereign debt crisis.
During the six-month period, as changes were made to the composition of the S&P 500 Index, the Master Portfolio in which the Fund invests purchased and sold securities to maintain its objective of replicating the risks and return of the benchmark index.
8 | Performance Evaluation |
Stock Index Fund
AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Year | 10 Year | |||||||||
periods ended 06/30/11 | ||||||||||||
Stock Index Fund | 29.94% | 2.37 | % | 2.06 | % | |||||||
Standard & Poor’s 500 Stock Index | 30.69% | 2.94 | % | 2.72 | % | |||||||
% of Total | % of Total | |||||||||||||
Net Assets | Net Assets | |||||||||||||
INDUSTRY DIVERSIFICATION | at 6/30/11* | at 6/30/11* | ||||||||||||
Information technology | 16.5 | % | Industrials | 10.4 | % | |||||||||
Financials | 13.8 | % | Consumer staples | 9.0 | % | |||||||||
Energy | 11.6 | % | Materials | 3.4 | % | |||||||||
Consumer discretionary | 10.7 | % | Utilities | 3.2 | % | |||||||||
Health care | 10.7 | % | Telecommunication services | 2.8 | % | |||||||||
Short-term and other assets | 7.9 | % | ||||||||||||
Total | 100.0 | % | ||||||||||||
% of Total | % of Total | |||||||||||||
Net Assets | Net Assets | |||||||||||||
TOP TEN HOLDINGS | at 6/30/11* | at 6/30/11* | ||||||||||||
Exxon Mobil Corp. | 3.1 | % | Microsoft Corp. | 1.5 | % | |||||||||
Apple Inc. | 2.4 | % | AT&T, Inc. | 1.4 | % | |||||||||
International Business Machines Corp. | 1.6 | % | Johnson & Johnson | 1.4 | % | |||||||||
Chevron Corp. | 1.6 | % | The Procter & Gamble Co. | 1.4 | % | |||||||||
General Electric Co. | 1.5 | % | Pfizer, Inc. | 1.2 | % | |||||||||
PERFORMANCE COMPARISON | ||||||||||||||
Comparison of the change in value of a $10,000 investment in the Fund and the Standard & Poor’s 500 Stock Index made on December 31, 2000.
The returns quoted in the above table and chart represent past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The Stock Index Fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares.
* Holdings information is for the S&P 500 Stock Master Portfolio, managed by BlackRock Fund Advisors, the portfolio in which the Stock Index Fund invests all of its investable assets. Please refer to the Appendix for the complete annual report of the S&P 500 Stock Master Portfolio.
Performance Evaluation | 9 |
PERFORMANCE EVALUATION
Value Fund
MARKET CONDITIONS
The major market indexes followed an up and down pattern twice in the first half of the year, with a strong rally in June to finish the period with a modest gain.
Forecasts early in the year pointed to an improving economy. However, the tsunami-induced supply chain disruptions in Japan, along with concerns over sovereign debt problems in several European nations, created hesitation in both the markets and in the economy. In the latter half of the period, commodity prices retreated, and the price of oil fell to below $100 per barrel, putting a damper on inflation expectations. The consumer continued to show some confidence, but not enough to help broad-based spending and accelerate the economic recovery. Thawing in the political attitude toward business appears to have been offset by proposals for increased regulation, uncertainty in tax policy and U.S. federal and state budget concerns.
FUND PERFORMANCE
The Value Fund increased 8.15% for the first half of 2011, and its benchmark index, the unmanaged S&P 500 Index, increased 6.02%. The Fund’s better-than-index results were due to several factors. The Fund’s positions in the energy, consumer staples and financial sectors outpaced the results of the overall index. The Fund’s positions in the industrials and information technology sectors lagged their respective index sectors. Top performing stocks in the first half of 2011 for the Fund were Marathon Oil Corporation, El Paso Corporation and Dell Inc. Laggards included Cisco Systems Inc., Hewlett-Packard Company and Avery Dennison Corporation.
No new positions were initiated during the first half of 2011. Additions to existing positions included Cisco Systems Inc., The Allstate Corporation and Southwest Airlines Company. Positions were reduced in Principal Financial Group, Inc., Parker-Hannifin Corporation and Dillard’s Inc.
OUTLOOK
At mid-year, the outlook for the economy looks mixed, with positive and negative factors jostling for position. Second quarter earnings for the S&P 500 are anticipated to be up more than 16% versus last year. Corporate balance sheets appear to be sound. U.S. gross domestic product growth for the remainder of 2011 is expected to be slightly higher than the 1.9% growth rate of the first quarter. But persistent weakness in housing, a disappointing June employment report and a weak lending environment may further constrain growth.
While daily news headlines capture public attention, it is important to remember that there are broad, underlying trends at work in the economy, including the continuation of consumer deleveraging and the unresolved financial and economic excesses built up during the last economic expansion. (The Greek debt situation is one example of the latter trend.) Further, significant legislation passed by Congress and signed into law in 2010, has yet to be codified. These factors, along with uncertainty surrounding the direction and resolution of the U.S. federal budget, especially on issues of spending and taxes, have created a business environment where commitment to long-term capital investment and employment is sluggish. As these issues are resolved, we believe that businesses may gain confidence, increasing the chances for a more robust expansion.
Despite the factors noted above, companies continue to make changes to their operations and have still committed some capital, so the economy is not standing still. As always, we continue to search for attractive investment opportunities in this environment.
10 | Performance Evaluation |
Value Fund
AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Year | 10 Year | |||||||||
Periods ended 06/30/11 | ||||||||||||
Value Fund | 29.99% | 2.15 | % | 5.58 | % | |||||||
Standard & Poor’s 500 Stock Index | 30.69% | 2.94 | % | 2.72 | % | |||||||
% of Total | % of Total | |||||||||||||
Investment | Investment | |||||||||||||
INDUSTRY DIVERSIFICATION | at 06/30/11 | at 06/30/11 | ||||||||||||
Health care | 20.4 | % | Materials | 6.6 | % | |||||||||
Energy | 17.5 | % | Consumer discretionary | 6.2 | % | |||||||||
Industrials | 17.3 | % | Consumer staples | 3.7 | % | |||||||||
Information technology | 16.9 | % | Short-term and other assets | 3.6 | % | |||||||||
Financials | 7.8 | % | ||||||||||||
Total | 100.0 | % | ||||||||||||
% of Total | % of Total | |||||||||||||
Investment | Investment | |||||||||||||
TOP TEN EQUITY HOLDINGS | at 06/30/11 | at 06/30/11 | ||||||||||||
Dow Chemical Co. (The) | 4.2 | % | Dell Inc. | 3.6 | % | |||||||||
Intel Corp. | 4.2 | % | Abbott Laboratories | 3.5 | % | |||||||||
Bristol-Myers Squibb Co. | 4.0 | % | Chevron Corp. | 3.5 | % | |||||||||
Pfizer Inc. | 3.8 | % | Hospira, Inc. | 3.5 | % | |||||||||
Parker-Hannifin Corp. | 3.7 | % | Marathon Oil Corp. | 3.4 | % | |||||||||
PERFORMANCE COMPARISON | ||||||||||||||
Comparison of the change in value of a $10,000 investment in the Fund and the Standard & Poor’s 500 Stock Index made on December 31, 2000.
The returns quoted in the above table and chart represent past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The Value Fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares.
Performance Evaluation | 11 |
PERFORMANCE EVALUATION
Growth Fund
MARKET CONDITIONS
The Russell 1000 Growth Index posted a mid-single-digit positive return for the six-month period as all sectors gained. Despite overall positive returns, there was considerable dispersion between sector returns. Utilities was by far the top-performing sector. Health care, energy, and consumer staples also outperformed the index. Telecommunication services was the worst-performing sector, with a flat return for the period. Materials and information technology also underperformed the overall index. Based on various Russell indices, large-caps outperformed small-caps, but both underperformed mid-caps for the period. Additionally, growth outperformed value across all market caps.
FUND PERFORMANCE
The Fund gained 4.79% in the six months ended June 30, 2011, but lagged its benchmark, the Russell 1000 Growth Index, which returned 6.83%. Overall, stock selection and sector allocation led to relative underperformance. Stock selection in consumer discretionary was the primary detractor from relative performance. Stock selection in energy and an underweight to consumer staples also weighed on relative results. Stock selection in materials was the primary contributor to relative performance.
Stock selection in consumer discretionary was the primary detractor from relative performance. Carnival Corporation, the world’s biggest cruise line operator, battled fuel costs, in addition to political unrest in the Middle East and North Africa and the aftermath of Japan’s earthquake and nuclear disaster. Concerns of continued economic weakness in the U.S. weighed on hotels, including Marriott International, Inc. Recently, the company revealed more details regarding its timeshare business spin-off that received mixed reviews from investors. Shares of General Motors Company were hampered by increased spending on new vehicle incentive programs and scaled-back production of high-margin trucks.
Stock selection in energy detracted from relative performance. Peabody Energy Corporation, the largest U.S. coal producer, suffered from macroeconomic concerns and problems with a mine in Colorado. Schlumberger Limited, the world’s largest oilfield contractor, reported poor results from its international business due to bad weather in Asia and Australia and disruptions in the Middle East and North Africa owing to political unrest.
At the other end of the spectrum, stock selection in materials was the primary contributor to relative performance. During the period, materials was one of the worst-performing sectors in the index. Praxair, Inc., the biggest U.S. industrial gas producer, reported strong revenue growth driven by sales in emerging markets, especially South America and Asia. The company increased market share as a competitor was distracted by a potential acquisition.
OUTLOOK
We are reasonably optimistic about the near- to medium-term outlook for the stock market, so we have positioned the portfolio for modest growth. We continue to believe we are in the early to middle stages of an economic recovery in the U.S. and that a double-dip recession is unlikely. As always, our bottom-up stock selection process determines sector positioning. However, we believe that companies in information technology, industrials and business services, and consumer discretionary will provide the best growth opportunities. We continue to focus on exposure to emerging markets through multinational companies. Health care appears more attractive, and we have incrementally increased our position in the sector where we have found opportunities in specific companies.
12 | Performance Evaluation |
Growth Fund
AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Year | 10 Year | |||||||||||
Periods ended 06/30/11 | ||||||||||||||
Growth Fund* | 33.87 | % | 7.13 | % | 1.06 | % | ||||||||
Russell 1000 Growth Index | 35.01 | % | 5.33 | % | 2.24 | % | ||||||||
Standard & Poor’s 500 Stock Index | 30.69 | % | 2.94 | % | 2.72 | % | ||||||||
% of Total | % of Total | |||||||||||||
Investment | Investment | |||||||||||||
INDUSTRY DIVERSIFICATION | at 06/30/11 | at 06/30/11 | ||||||||||||
Information technology | 32.4 | % | Financials | 5.1 | % | |||||||||
Consumer discretionary | 17.3 | % | Materials | 3.3 | % | |||||||||
Industrials | 16.1 | % | Telecommunication services | 2.2 | % | |||||||||
Health care | 11.9 | % | Consumer staples | 1.9 | % | |||||||||
Energy | 9.6 | % | Short-term and other assets | 0.2 | % | |||||||||
Total | 100.0 | % | ||||||||||||
% of Total | % of Total | |||||||||||||
Investment | Investment | |||||||||||||
TOP TEN EQUITY HOLDINGS | at 06/30/11 | at 06/30/11 | ||||||||||||
Apple Inc. | 6.7 | % | Praxair Inc. | 2.8 | % | |||||||||
Amazon.com, Inc. | 3.9 | % | McKesson Corp. | 2.5 | % | |||||||||
Google Inc. (Class A) | 3.8 | % | Schlumberger Ltd. | 2.4 | % | |||||||||
Danaher Corp. | 3.4 | % | Franklin Resources Inc. | 2.4 | % | |||||||||
QUALCOMM, Inc. | 3.3 | % | EOG Resources Inc. | 2.3 | % | |||||||||
PERFORMANCE COMPARISON | ||||||||||||||
Comparison of the change in value of a $10,000 investment in the Fund and its benchmark indices made at the Fund’s inception on January 22, 2001.
The returns quoted in the above table and chart represent past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The Growth Fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares.
* Performance information for the Growth Fund (formerly the Nasdaq-100 Index Tracking Stocksm Fund) reflects its previous investment strategy from inception through December 5, 2008, of matching, as closely as possible, before expenses, the performance of the Nasdaq-100 Stock Index.
Performance Evaluation | 13 |
PERFORMANCE EVALUATION
Small-Company Stock Fund
MARKET CONDITIONS
Markets began the year with expectations for the economy to continue to make progress throughout 2011. However, concerns about the sovereign debt of several European countries, along with the natural disaster in Japan, conspired with disappointing employment numbers, increased regulatory and tax uncertainty and federal and state budget concerns to erode confidence in the U.S. economic recovery as the first half of the year came to a close.
The small-capitalization stock indexes, the Russell 2000, the Russell 2000 Value, and the Standard & Poor’s Small-Cap 600, all followed a saw-blade pattern during the period. Though the indexes rose and fell twice, they concluded the six-month period higher than they were at the start of the year.
FUND PERFORMANCE
The Fund increased 8.38% in the first half of 2011, while its benchmark index, the Russell 2000 increased 6.21%. The Fund’s better than benchmark results were helped by positions in the industrials, consumer staples, materials and energy industries held in greater proportion relative to the index. Appreciation in the stock prices of Manitowoc Company, Inc., Dean Foods Company and Westlake Chemical Corporation contributed significantly to Fund outperformance, while Cooper Tire & Rubber Company, National Bankshares, Inc. (Virginia) and Asset Acceptance Capital Corp. were the poorest performing stocks in the first half.
New names added to the Fund included Computer Services, Inc., a provider of data processing services to financial institutions; Huntington Ingalls Industries, Inc., which designs, builds and overhauls military ships; and PolyOne Corporation, a provider of thermoplastic compounds, specialty resins and polymer formulations.
OUTLOOK
As we begin the second half of 2011, we expect that second quarter earnings will improve, along with gross domestic product growth in the second half of the year. However, housing remains weak, bank loan growth is minimal, and non-U.S. economies are now growing more slowly, subject to their own form of monetary policy tightening.
The present environment consists of many unresolved economic issues. Absent a resolution to many or all of the following, an accurate forecast on the direction of the economy is challenging. The debt overhang, brought on by consumer and sovereign financial excesses during the last economic cycle, still weighs heavily on the world economy. At home, concerns persist over the effect of large federal and state budget deficits. In addition, a lack of political consensus on tax policy and regulation keeps businesses cautious about deploying capital for long-term investment and jobs.
In spite of this backdrop, we continue to uncover companies that meet our criteria for value—those with seemingly temporary setbacks within the business, or those with some aspect(s) of their business operations misunderstood by the general marketplace.
We appreciate your continued trust and investment.
14 | Performance Evaluation |
Small-Company Stock Fund
AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Year | 10 Year | |||||||||||
Periods ended 06/30/11 | ||||||||||||||
Small-Company Stock Fund | 41.35 | % | 8.29 | % | 10.62 | % | ||||||||
Russell 2000 Index | 37.41 | % | 4.08 | % | 6.27 | % | ||||||||
% of Total | % of Total | |||||||||||||
Investment | Investment | |||||||||||||
INDUSTRY DIVERSIFICATION | at 06/30/11 | at 06/30/11 | ||||||||||||
Industrials | 28.2 | % | Information technology | 6.9 | % | |||||||||
Consumer staples | 13.1 | % | Financials | 5.0 | % | |||||||||
Consumer discretionary | 12.5 | % | Health care | 3.2 | % | |||||||||
Materials | 8.9 | % | Short-term and other assets | 14.7 | % | |||||||||
Energy | 7.5 | % | ||||||||||||
Total | 100.0 | % | ||||||||||||
% of Total | % of Total | |||||||||||||
Investment | Investment | |||||||||||||
TOP TEN EQUITY HOLDINGS | at 06/30/11 | at 06/30/11 | ||||||||||||
iShares Russell 2000 Value Index | 4.1 | % | Olin Corp. | 3.4 | % | |||||||||
Applied Industrial Technologies, Inc. | 4.0 | % | Cracker Barrel Old Country Store, Inc. | 3.3 | % | |||||||||
Triumph Group, Inc. | 4.0 | % | STERIS Corp. | 3.2 | % | |||||||||
Dean Foods Co. | 3.6 | % | Belden Inc. | 3.2 | % | |||||||||
Westlake Chemical Corp. | 3.5 | % | Rofin-Sinar Technologies Inc. | 3.2 | % | |||||||||
PERFORMANCE COMPARISON | ||||||||||||||
Comparison of the change in value of a $10,000 investment in the Fund and the Russell 2000 Index made on December 31, 2000.
The returns quoted in the above table and chart represent past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The Small-Company Stock Fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares.
Performance Evaluation | 15 |
PERFORMANCE EVALUATION
International Value Fund
MARKET CONDITIONS
In spite of a handful of negative developments, global stock markets continued to rise through the first half of the six-month period. Turmoil in the Middle East, a devastating earthquake in Japan, an ongoing debt crisis in Europe and rising food and energy prices were shrugged off by the markets. The second half of the period was tumultuous as investors’ “risk on” and “risk off” mentality influenced markets. Early strength was later dampened, as a slowdown in the global economy, the ongoing Eurozone debt crisis, a continuation of the Arab Spring uprisings and China’s attempt to slow its overheating economy weighed on sentiment. In this environment, the more economically sensitive emerging markets underperformed developed markets.
FUND PERFORMANCE
For the six-month period ending June 30, 2011, the Fund gained 4.69% versus the benchmark MSCI EAFE, which returned 4.98%. Performance was supported by a rebound in oversold Japanese companies. Daito Trust Construction Company Limited, Nissan Motor Company, Limited and Bridgestone Corporation all registered double-digit gains. Japan’s recovery is showing signs of progress with machinery order growth rising to a four-month high in May as rebuilding kicks in. Holdings in France and Italy also outperformed, while German and Swiss stocks underperformed for the period. Deutsche Boerse AG, Adecco SA and Credit Suisse Group AG all detracted from performance.
Strength was found in the information technology, consumer discretionary and utilities sectors; Cap Gemini SA and Indra Sistemas SA performed well in the IT space; Pearson PLC and the aforementioned Nissan and Bridgestone were standout consumer discretionary stocks; and Italy’s Enel SpA was noteworthy among utilities. Energy stocks also contributed to performance, with Total SA, Statoil ASA and Eni SpA posting strong gains for the period. Financials and health care holdings, such as New World Development Company Limited and Daiichi Sankyo Company Limited, detracted.
OUTLOOK
As the European Union goes through difficult times, we see the potential for both positive and negative developments over the short- to mid-term, with the endgame being a much stronger economic union. Politicians seemingly will need to be pushed to the brink before agreeing to a comprehensive solution, but we believe that the euro will ultimately survive since it is in every member country’s best interest to ensure that it does. As a result of the debt issues, we see valuations throughout Europe, the southern region in particular, as very attractive relative to historic levels and global peers.
Japan appears to be recovering from its devastating earthquake and tsunami. Manufacturing activity continues to normalize with industrial production up 5.7% month-over-month in May, which was the biggest monthly gain since 1953. Exports are recovering as supply chain issues have largely been resolved. China, a key export market for Japan, is closing in on the end of interest rate tightening, which should lead to a pickup in industrial activity in the second half of the year. We combine these economic tailwinds with an extremely attractive market trading at or below book value, and see the stage as set for a meaningful market rerating.
We take a long-term view of the companies in which we invest, seeking to buy them at prices well beneath their true value. Given the transitional nature of the current market environment, we recognize that our new positions have been established early, in anticipation of future positive events. We believe that our disciplined approach helps us avoid the near-term noise to the benefit of long-term performance. In this environment, we believe well-capitalized companies with above average dividend yields have the potential to provide the foundation for strong relative performance.
16 | Performance Evaluation |
International Value Fund
AVERAGE ANNUAL TOTAL RETURNS | 1 Year | 5 Year | 10 Year | |||||||||
Periods ended 06/30/11 | ||||||||||||
International Value Fund* | 27.67% | 1.99 | % | 5.33 | % | |||||||
MSCI® EAFE® Index | 30.36% | 1.48 | % | 5.66 | % | |||||||
% of Total | % of Total | |||||||||||||
Investment | Investment | |||||||||||||
COUNTRY DIVERSIFICATION | at 06/30/11 | at 06/30/11 | ||||||||||||
Japan | 21.5 | % | Norway | 2.4 | % | |||||||||
Switzerland | 14.9 | % | Israel | 1.9 | % | |||||||||
Britain | 11.4 | % | China | 1.9 | % | |||||||||
France | 10.4 | % | Australia | 1.8 | % | |||||||||
Italy | 4.6 | % | Portugal | 1.7 | % | |||||||||
Netherlands | 4.3 | % | Singapore | 1.6 | % | |||||||||
Spain | 4.2 | % | Indonesia | 1.0 | % | |||||||||
Germany | 4.0 | % | Brazil | 0.7 | % | |||||||||
Republic of South Korea | 3.9 | % | Finland | 0.5 | % | |||||||||
Hong Kong | 3.4 | % | Short-term and other assets | 1.4 | % | |||||||||
Thailand | 2.5 | % | ||||||||||||
Total | 100.0 | % | ||||||||||||
% of Total | % of Total | |||||||||||||
Investment | Investment | |||||||||||||
TOP TEN EQUITY HOLDINGS | at 06/30/11 | at 06/30/11 | ||||||||||||
AXA SA | 2.5 | % | Bridgestone Corp. | 2.4 | % | |||||||||
WPP Group PLC | 2.4 | % | Koninklijke DSM NV | 2.2 | % | |||||||||
Nissan Motor Co., Ltd. | 2.4 | % | Novartis AG REG | 2.2 | % | |||||||||
Total SA | 2.4 | % | Sumitomo Trust & Banking Co. | 2.2 | % | |||||||||
Statoil ASA | 2.4 | % | Roche Holding Ltd. | 2.2 | % | |||||||||
PERFORMANCE COMPARISON | ||||||||||||||
Comparison of the change in value of a $10,000 investment in the Fund and the MSCI® EAFE® Index made at the Fund’s inception on January 22, 2001.
The returns quoted in the above table and chart represent past performance, which is no guarantee of future results. Current performance may be higher or lower than that shown above. Returns and the principal value of your investment will fluctuate such that shares, when redeemed, may be worth more or less than their original cost. The International Value Fund’s average annual total returns are net of any fee waivers and reimbursements. Returns do not reflect taxes that the shareholder may pay on Fund distributions or the redemption of Fund shares.
* The performance information for the International Value Fund (formerly the International Stock Index Fund) reflects its investment experience in the State Street MSCI® EAFE® Index Portfolio from inception through October 16, 2005, and in the Vanguard Developed Markets Index Fund from October 17, 2005 to June 9, 2006. Mercator Asset Management, L.P.’s role as subadvisor began June 12, 2006.
Performance Evaluation | 17 |
Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs; and (2) ongoing costs, including management fees, service fees, and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in each of the Homestead Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at January 1, 2011 and held through June 30, 2011.
ACTUAL EXPENSES
The first line for each Fund in the table on the following page provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during this period. Although the Funds charge no sales loads or transaction fees, you will be charged a redemption fee equal to 2.00% of the net amount of the redemption (except for the Daily Income Fund, Short-Term Government Securities Fund, and Short-Term Bond Fund), if you redeem your shares or exchange your shares for shares of another Fund less than 30 calendar days after you purchase them.
Individual Retirement Arrangements (IRAs) and Educational Savings Accounts (ESAs) are charged a $15.00 annual custodial fee. The charge is automatically deducted from your account in the fourth quarter or, if you close your account, at the time of redemption. A fee is collected for each IRA or ESA account, as distinguished by account type (Traditional IRA, Roth IRA, or ESA) and Social Security Number. For example, if you have both a Traditional IRA and a Roth IRA account, each would be charged a fee. But only one fee would be collected for each account type, regardless of the number of Funds held by each account type. These fees are not included in the example below. If included, the costs shown would be higher.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line for each Fund in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as the redemption fee charged on sales of shares held less than 30 days, or the custodial account fee. Therefore, the hypothetical information in the example is useful in comparing your ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
18 | Expense Example |
Annualized | ||||||||||||||||||
Expense Ratio | ||||||||||||||||||
Beginning Account | Ending Account | for the Six Month | ||||||||||||||||
Value | Value | Expenses Paid | Period Ended | |||||||||||||||
January 1, 2011 | June 30, 2011 | During the Perioda | June 30, 2011 | |||||||||||||||
DAILY INCOME FUND | ||||||||||||||||||
Actual Return | $ | 1,000.00 | $ | 1,000.05 | $ | 0.89 | 0.18 | % | ||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,024.35 | 0.90 | 0.18 | % | |||||||||||||
SHORT-TERM GOVERNMENT SECURITIES FUND | ||||||||||||||||||
Actual Return | 1,000.00 | 1,009.13 | 3.68 | 0.74 | % | |||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.32 | 3.70 | 0.74 | % | |||||||||||||
SHORT-TERM BOND FUND | ||||||||||||||||||
Actual Return | 1,000.00 | 1,015.80 | 3.97 | 0.79 | % | |||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.04 | 3.98 | 0.79 | % | |||||||||||||
STOCK INDEX FUNDb | ||||||||||||||||||
Actual Return | 1,000.00 | 1,059.42 | 3.07 | 0.60 | % | |||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.01 | 3.02 | 0.60 | % | |||||||||||||
VALUE FUND | ||||||||||||||||||
Actual Return | 1,000.00 | 1,084.32 | 3.57 | 0.69 | % | |||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.56 | 3.46 | 0.69 | % | |||||||||||||
GROWTH FUND | ||||||||||||||||||
Actual Return | 1,000.00 | 1,048.87 | 4.82 | 0.95 | % | |||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,020.26 | 4.75 | 0.95 | % | |||||||||||||
�� | ||||||||||||||||||
SMALL-COMPANY STOCK FUND | ||||||||||||||||||
Actual Return | 1,000.00 | 1,086.78 | 5.74 | 1.11 | % | |||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,019.45 | 5.56 | 1.11 | % | |||||||||||||
INTERNATIONAL VALUE FUND | ||||||||||||||||||
Actual Return | 1,000.00 | 1,047.83 | 5.02 | 0.99 | % | |||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,020.06 | 4.95 | 0.99 | % |
a. | The dollar amounts shown as “Expenses Paid During the Period” are equal to each Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 181, then divided by 365. |
b. | The Stock Index Fund is a feeder fund that invests substantially all of its assets in a master portfolio. The example reflects the expenses of both the feeder fund and the master portfolio. |
Expense Example | 19 |
Regulatory and Shareholder Matters
PROXY VOTING POLICIES AND PROCEDURES
The policies and procedures used to determine how to vote proxies relating to the Funds’ portfolio securities are available without charge online at www.homesteadfunds.com or upon request by calling 1-800-258-3030. This information is also on the Securities and Exchange Commission’s website at www.sec.gov.
PROXY VOTING RECORD
For the most recent twelve-month period ended June 30, information regarding how proxies relating to portfolio securities were voted on behalf of each of the Funds is available without charge upon request by calling 1-800-258-3030 and on the Securities and Exchange Commission’s website at www.sec.gov.
QUARTERLY DISCLOSURE OF PORTFOLIO HOLDINGS
The Funds file complete schedules of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. Portfolio holdings for the second and fourth quarter of each fiscal year are filed as part of the Funds’ semi-annual and annual reports. The Funds’ Form N-Q, semi-annual and annual reports are available on the Commission’s website at www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The most recent quarterly portfolio holdings and semi-annual and annual report also can be accessed on the Funds’ website at www.homesteadfunds.com.
20 | Regulatory and Shareholder Matters |
PORTFOLIO OF INVESTMENTS: Daily Income Fund
June 30, 2011 (Unaudited)
CORPORATE NOTES | Interest Rate | Maturity Date | Face Amount | Value | ||||||||||||||||
(1.9% of portfolio) | ||||||||||||||||||||
HSBC Finance Corp. | 6.38 | % | 10/15/11 | $ | 3,595,000 | $ | 3,657,052 | |||||||||||||
Total Corporate Notes (Cost $3,657,052) | 3,657,052 | |||||||||||||||||||
COMMERCIAL PAPER | ||||||||||||||||||||
(67.0% of portfolio) | ||||||||||||||||||||
Air Liquide US LLC(a) | 0.16 | 07/11/11 | 4,000,000 | 3,999,822 | ||||||||||||||||
Air Liquide US LLC(a) | 0.15 | 07/11/11 | 5,000,000 | 4,999,792 | ||||||||||||||||
American Honda Finance Corp. | 0.21 | 07/21/11 | 1,500,000 | 1,499,825 | ||||||||||||||||
American Honda Finance Corp. | 0.14 | 09/06/11 | 3,100,000 | 3,099,192 | ||||||||||||||||
American Honda Finance Corp. | 0.21 | 09/16/11 | 4,500,000 | 4,497,979 | ||||||||||||||||
Campbell Soup Co.(a) | 0.18 | 08/15/11 | 4,000,000 | 3,999,100 | ||||||||||||||||
Citigroup Funding Inc. | 0.16 | 07/12/11 | 3,000,000 | 2,999,853 | ||||||||||||||||
Citigroup Funding Inc. | 0.16 | 07/15/11 | 2,000,000 | 1,999,876 | ||||||||||||||||
Coca-Cola Co.(a) | 0.18 | 07/14/11 | 3,200,000 | 3,199,792 | ||||||||||||||||
Coca-Cola Co.(a) | 0.14 | 08/22/11 | 2,000,000 | 1,999,596 | ||||||||||||||||
Coca-Cola Co.(a) | 0.15 | 09/06/11 | 1,500,000 | 1,499,581 | ||||||||||||||||
Coca-Cola Co.(a) | 0.13 | 09/14/11 | 2,000,000 | 1,999,458 | ||||||||||||||||
Conocophillips Qatar Funding Ltd.(a) | 0.11 | 07/22/11 | 2,074,000 | 2,073,867 | ||||||||||||||||
Conocophillips Qatar Funding Ltd.(a) | 0.15 | 08/16/11 | 4,500,000 | 4,499,138 | ||||||||||||||||
Exxon Mobil Corp. | 0.10 | 08/10/11 | 6,000,000 | 5,999,333 | ||||||||||||||||
General Electric Capital Corp. | 0.12 | 07/01/11 | 6,000,000 | 6,000,000 | ||||||||||||||||
Hewlett-Packard Co.(a) | 0.08 | 07/15/11 | 6,000,000 | 5,999,813 | ||||||||||||||||
HSBC Finance Corp. | 0.13 | 07/05/11 | 1,000,000 | 999,986 | ||||||||||||||||
HSBC Finance Corp. | 0.12 | 07/08/11 | 1,600,000 | 1,599,963 | ||||||||||||||||
John Deere Bank SA(a) | 0.12 | 07/07/11 | 1,100,000 | 1,099,978 | ||||||||||||||||
John Deere Bank SA(a) | 0.10 | 07/25/11 | 910,000 | 909,939 | ||||||||||||||||
John Deere Bank SA(a) | 0.09 | 07/26/11 | 4,000,000 | 3,999,750 | ||||||||||||||||
John Deere Credit Inc.(a) | 0.11 | 07/26/11 | 3,000,000 | 2,999,771 | ||||||||||||||||
Johnson & Johnson(a) | 0.18 | 07/13/11 | 2,000,000 | 1,999,880 | ||||||||||||||||
Johnson & Johnson(a) | 0.13 | 08/29/11 | 1,000,000 | 999,787 | ||||||||||||||||
L’Oreal USA Inc.(a) | 0.17 | 07/19/11 | 4,000,000 | 3,999,660 | ||||||||||||||||
Metlife Funding Inc. | 0.11 | 07/06/11 | 9,000,000 | 8,999,862 | ||||||||||||||||
Nestle Capital Corp.(a) | 0.19 | 08/08/11 | 4,000,000 | 3,999,198 | ||||||||||||||||
Nestle Capital Corp.(a) | 0.14 | 11/22/11 | 5,000,000 | 4,997,200 | ||||||||||||||||
PACCAR Financial Corp. | 0.16 | 08/12/11 | 4,000,000 | 3,999,253 | ||||||||||||||||
PACCAR Financial Corp. | 0.16 | 09/02/11 | 2,000,000 | 1,999,440 | ||||||||||||||||
PACCAR Financial Corp. | 0.15 | 09/06/11 | 3,000,000 | 2,999,162 | ||||||||||||||||
PepsiCo, Inc.(a) | 0.11 | 07/22/11 | 5,500,000 | 5,499,647 | ||||||||||||||||
PepsiCo, Inc.(a) | 0.10 | 08/02/11 | 3,000,000 | 2,999,733 | ||||||||||||||||
Toyota Motor Credit Corp. | 0.15 | 07/22/11 | 3,500,000 | 3,499,694 | ||||||||||||||||
Toyota Motor Credit Corp. | 0.16 | 08/24/11 | 2,500,000 | 2,499,400 | ||||||||||||||||
Toyota Motor Credit Corp. | 0.20 | 09/22/11 | 3,000,000 | 2,998,617 | ||||||||||||||||
UBS Finance Delaware LLC | 0.19 | 09/26/11 | 3,000,000 | 2,998,622 | ||||||||||||||||
Total Commercial Paper (Cost $126,464,559) | 126,464,559 | |||||||||||||||||||
U.S. GOVERNMENT OBLIGATIONS | ||||||||||||||||||||
(21.6% of portfolio) | ||||||||||||||||||||
Federal Home Loan Mortgage Corp. Discount Note | 0.13 | 07/25/11 | 400,000 | 399,965 | ||||||||||||||||
Federal National Mortgage Assn. Discount Note | 0.12 | 07/11/11 | 500,000 | 499,983 | ||||||||||||||||
Federal National Mortgage Assn. Discount Note | 0.12 | 07/13/11 | 1,400,000 | 1,399,944 | ||||||||||||||||
Federal National Mortgage Assn. Discount Note | 0.13 | 07/20/11 | 346,000 | 345,976 | ||||||||||||||||
U.S. Treasury Bill | 0.22 | 07/28/11 | 5,000,000 | 4,999,171 | ||||||||||||||||
U.S. Treasury Bill | 0.22 | 07/28/11 | 5,000,000 | 4,999,153 | ||||||||||||||||
U.S. Treasury Bill | 0.08 | 09/15/11 | 5,000,000 | 4,998,681 | ||||||||||||||||
U.S. Treasury Bill | 0.08 | 09/15/11 | 7,000,000 | 6,998,862 | ||||||||||||||||
U.S. Treasury Bill | 0.11 | 10/20/11 | 2,000,000 | 1,999,353 |
Portfolio of Investments | 21 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Daily Income Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||||
(U.S. Government Obligations continued) | ||||||||||||||||||||
U.S. Treasury Bill | 0.09 | % | 11/17/11 | $ | 5,000,000 | $ | 4,998,263 | |||||||||||||
U.S. Treasury Bill | 0.09 | 12/22/11 | 5,000,000 | 4,998,188 | ||||||||||||||||
U.S. Treasury Bill | 0.08 | 12/22/11 | 4,000,000 | 3,998,260 | ||||||||||||||||
Total U.S. Government Agency Obligations (Cost $40,635,799) | 40,635,799 | |||||||||||||||||||
MONEY MARKET ACCOUNT | Shares | |||||||||||||||||||
(9.5% of portfolio) | ||||||||||||||||||||
State Street Institutional Liquid Reserves Fund | 0.15 | (b) | 17,925,760 | 17,925,760 | ||||||||||||||||
Total Money Market Account (Cost $17,925,760) | 17,925,760 | |||||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES (Cost $188,683,170)—100% | $ | 188,683,170 | ||||||||||||||||||
(a) | Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. The security has been determined to be liquid under criteria established by the Fund’s Board of Directors. Total of such securities at period-end amounts to $67,774,502 and represents 35.9% of total investments. | |
(b) | 7-day yield at June 30, 2011. |
22 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Government Securities Fund
June 30, 2011 (Unaudited)
ASSET BACKED SECURITIES | Interest Rate | Maturity Date | Face Amount | Value | ||||||||||||||
(2.3% of portfolio) | ||||||||||||||||||
Small Business Administration 93-20J | 5.90 | % | 10/01/13 | $ | 15,566 | $ | 16,151 | |||||||||||
Small Business Administration 98-20D | 6.15 | 04/01/18 | 26,010 | 28,405 | ||||||||||||||
Small Business Administration 98-20E | 6.30 | 05/01/18 | 25,722 | 28,189 | ||||||||||||||
Small Business Administration 98-20H | 6.15 | 08/01/18 | 11,202 | 12,225 | ||||||||||||||
Small Business Administration 99-20D | 6.15 | 04/01/19 | 40,450 | 43,898 | ||||||||||||||
Small Business Administration 04-20B | 4.72 | 02/01/24 | 92,315 | 98,274 | ||||||||||||||
Small Business Administration 04-20C | 4.34 | 03/01/24 | 122,512 | 129,199 | ||||||||||||||
Small Business Administration 05-10E | 4.54 | 09/01/15 | 36,408 | 38,028 | ||||||||||||||
Small Business Administration Pool # 100075 | 3.50 | 05/25/19 | 35,883 | 35,146 | ||||||||||||||
Small Business Administration Pool # 500724 | 4.00 | (a) | 12/25/13 | 5,840 | 5,943 | |||||||||||||
Small Business Administration Pool # 502261 | 1.38 | (a) | 10/25/17 | 14,568 | 14,548 | |||||||||||||
Small Business Administration Pool # 502477 | 1.25 | (a) | 09/25/18 | 41,217 | 40,957 | |||||||||||||
Small Business Administration Pool # 502543 | 0.95 | (a) | 01/25/19 | 73,249 | 73,551 | |||||||||||||
Small Business Administration Pool # 502684 | 1.25 | (a) | 07/25/19 | 3,288 | 3,319 | |||||||||||||
Small Business Administration Pool # 503278 | 0.88 | (a) | 02/25/21 | 31,683 | 31,829 | |||||||||||||
Small Business Administration Pool # 503463 | 1.13 | (a) | 09/25/21 | 22,938 | 22,905 | |||||||||||||
Small Business Administration Pool # 504305 | 0.88 | (a) | 10/25/23 | 5,519 | 5,496 | |||||||||||||
Small Business Investment Companies 02-20K | 5.08 | 11/01/22 | 38,763 | 41,578 | ||||||||||||||
Small Business Investment Companies 02-P10B | 5.20 | 08/10/12 | 57,387 | 59,622 | ||||||||||||||
Small Business Investment Companies 03-10A | 4.63 | 03/10/13 | 404,645 | 422,407 | ||||||||||||||
Small Business Investment Companies 03-10B | 3.39 | 03/01/13 | 15,263 | 15,469 | ||||||||||||||
Small Business Investment Companies 03-P10A | 4.52 | 02/10/13 | 5,125 | 5,339 | ||||||||||||||
Small Business Investment Companies 03-P10B | 5.14 | 08/10/13 | 26,431 | 27,946 | ||||||||||||||
Small Business Investment Companies 04-10A | 4.12 | 03/10/14 | 155,215 | 161,920 | ||||||||||||||
Small Business Investment Companies 04-10B | 4.68 | 09/10/14 | 223,563 | 235,305 | ||||||||||||||
Small Business Investment Companies 04-P10A | 4.50 | 02/10/14 | 29,222 | 30,641 | ||||||||||||||
Small Business Investment Companies 05-10B | 4.94 | 09/10/15 | 183,939 | 198,727 | ||||||||||||||
Small Business Investment Companies 05-P10A | 4.64 | 02/10/15 | 56,894 | 60,566 | ||||||||||||||
Small Business Investment Companies 07-10A | 5.38 | 03/10/17 | 87,153 | 94,371 | ||||||||||||||
Total Asset Backed Securities (Cost $1,853,892) | 1,981,954 | |||||||||||||||||
MORTGAGE BACKED SECURITIES | ||||||||||||||||||
(5.5% of portfolio) | ||||||||||||||||||
FDIC Structured Sale Guaranteed Notes 2010-S3(b) | 2.74 | 12/03/20 | 848,755 | 854,026 | ||||||||||||||
GNMA #2602 | 6.00 | 06/20/28 | 61,174 | 68,028 | ||||||||||||||
GNMA #2707 | 5.50 | 01/20/14 | 6,307 | 6,816 | ||||||||||||||
GNMA #8004 | 2.63 | (a) | 07/20/22 | 27,386 | 28,395 | |||||||||||||
GNMA #8006 | 2.63 | (a) | 07/20/22 | 25,433 | 26,370 | |||||||||||||
GNMA #8038 | 2.63 | (a) | 08/20/22 | 15,424 | 15,992 | |||||||||||||
GNMA #8040 | 2.63 | (a) | 08/20/22 | 39,497 | 40,953 | |||||||||||||
GNMA #8054 | 2.13 | (a) | 10/20/22 | 9,741 | 10,043 | |||||||||||||
GNMA #8076 | 2.13 | (a) | 11/20/22 | 16,046 | 16,545 | |||||||||||||
GNMA #8102 | 4.00 | (a) | 02/20/16 | 5,333 | 5,558 | |||||||||||||
GNMA #8103 | 4.00 | (a) | 02/20/16 | 19,207 | 20,028 | |||||||||||||
GNMA #8157 | 2.38 | (a) | 03/20/23 | 28,794 | 29,797 | |||||||||||||
GNMA #8191 | 3.38 | (a) | 05/20/23 | 46,420 | 48,397 | |||||||||||||
GNMA #8215 | 3.38 | (a) | 04/20/17 | 4,297 | 4,480 | |||||||||||||
GNMA #8259 | 2.63 | (a) | 08/20/23 | 13,171 | 13,657 | |||||||||||||
GNMA #8297 | 4.00 | (a) | 12/20/17 | 12,345 | 12,833 | |||||||||||||
GNMA #8332 | 3.50 | (a) | 03/20/18 | 8,035 | 8,363 | |||||||||||||
GNMA #8344 | 3.50 | (a) | 04/20/18 | 18,874 | 19,705 | |||||||||||||
GNMA #8384 | 2.38 | (a) | 03/20/24 | 6,618 | 6,849 | |||||||||||||
GNMA #8393 | 4.00 | (a) | 08/20/18 | 7,384 | 7,703 | |||||||||||||
GNMA #8400 | 2.63 | (a) | 08/20/18 | 10,506 | 10,893 | |||||||||||||
GNMA #8405 | 4.00 | (a) | 09/20/18 | 11,815 | 12,325 | |||||||||||||
GNMA #8423 | 3.38 | (a) | 05/20/24 | 8,265 | 8,618 | |||||||||||||
GNMA #8429 | 4.00 | (a) | 11/20/18 | 13,145 | 13,665 |
Portfolio of Investments | 23 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Government Securities Fund (continued)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(Mortgage Backed Securities continued) | ||||||||||||||||||
GNMA #8459 | 2.63 | (a)% | 07/20/24 | $ | 12,687 | $ | 13,155 | |||||||||||
GNMA #8499 | 3.88 | (a) | 05/20/19 | 8,593 | 8,991 | |||||||||||||
GNMA #8518 | 2.13 | (a) | 10/20/24 | 11,722 | 12,087 | |||||||||||||
GNMA #8532 | 2.50 | (a) | 10/20/24 | 16,391 | 16,938 | |||||||||||||
GNMA #8591 | 2.38 | (a) | 02/20/25 | 37,624 | 38,935 | |||||||||||||
GNMA #8638 | 3.38 | (a) | 06/20/25 | 14,085 | 14,684 | |||||||||||||
GNMA #8648 | 2.63 | (a) | 07/20/25 | 22,464 | 23,291 | |||||||||||||
GNMA #8663 | 2.63 | (a) | 07/20/25 | 17,991 | 18,654 | |||||||||||||
GNMA #8680 | 3.50 | (a) | 08/20/20 | 15,727 | 16,376 | |||||||||||||
GNMA #8687 | 2.63 | (a) | 08/20/25 | 4,458 | 4,623 | |||||||||||||
GNMA #8702 | 3.00 | (a) | 10/20/20 | 6,840 | 7,085 | |||||||||||||
GNMA #8747 | 2.13 | (a) | 11/20/25 | 12,891 | 13,292 | |||||||||||||
GNMA #8807 | 2.63 | (a) | 07/20/21 | 15,971 | 16,559 | |||||||||||||
GNMA #8836 | 2.63 | (a) | 09/20/21 | 14,646 | 15,185 | |||||||||||||
GNMA #8847 | 3.38 | (a) | 04/20/26 | 14,898 | 15,532 | |||||||||||||
GNMA #8869 | 2.13 | (a) | 11/20/21 | 48,107 | 49,602 | |||||||||||||
GNMA #8873 | 2.50 | (a) | 11/20/21 | 21,255 | 21,964 | |||||||||||||
GNMA #8877 | 3.38 | (a) | 05/20/26 | 3,614 | 3,768 | |||||||||||||
GNMA #8883 | 2.13 | (a) | 12/20/21 | 16,645 | 17,163 | |||||||||||||
GNMA #8915 | 2.38 | (a) | 02/20/22 | 16,073 | 16,633 | |||||||||||||
GNMA #8934 | 2.38 | (a) | 03/20/22 | 27,027 | 27,969 | |||||||||||||
GNMA #8978 | 3.38 | (a) | 05/20/22 | 67,843 | 70,733 | |||||||||||||
GNMA #80053 | 2.38 | (a) | 03/20/27 | 3,311 | 3,427 | |||||||||||||
GNMA #80058 | 3.38 | (a) | 04/20/27 | 3,308 | 3,449 | |||||||||||||
GNMA #80185 | 3.38 | (a) | 04/20/28 | 31,887 | 33,245 | |||||||||||||
GNMA #80264 | 2.25 | (a) | 03/20/29 | 33,995 | 35,144 | |||||||||||||
GNMA #80283 | 3.38 | (a) | 05/20/29 | 21,076 | 21,974 | |||||||||||||
GNMA #80300 | 2.63 | (a) | 07/20/29 | 19,764 | 20,492 | |||||||||||||
GNMA #80309 | 2.63 | (a) | 08/20/29 | 7,970 | 8,264 | |||||||||||||
GNMA #80363 | 2.25 | (a) | 01/20/30 | 66,754 | 69,010 | |||||||||||||
GNMA #80426 | 2.63 | (a) | 07/20/30 | 2,905 | 3,012 | |||||||||||||
GNMA #80452 | 2.63 | (a) | 09/20/30 | 19,307 | 20,019 | |||||||||||||
GNMA #80475 | 1.88 | (a) | 12/20/30 | 35,695 | 36,749 | |||||||||||||
GNMA #80577 | 1.75 | (a) | 02/20/32 | 5,646 | 5,819 | |||||||||||||
GNMA #80684 | 3.38 | (a) | 04/20/33 | 15,313 | 15,965 | |||||||||||||
GNMA #81129 | 3.50 | (a) | 10/20/34 | 423,187 | 439,642 | |||||||||||||
GNMA #510280 | 6.00 | 08/15/14 | 6,653 | 7,296 | ||||||||||||||
GNMA #583189 | 4.50 | 02/20/17 | 46,627 | 50,228 | ||||||||||||||
GNMA #607494 | 5.00 | 04/15/19 | 29,359 | 32,005 | ||||||||||||||
GNMA #616274 | 5.00 | 02/15/19 | 33,284 | 36,035 | ||||||||||||||
GNMA 1996-4 | 7.00 | 04/16/26 | 4,818 | 5,199 | ||||||||||||||
GNMA 2001-53 | 5.50 | 10/20/31 | 31,749 | 33,664 | ||||||||||||||
GNMA 2001-53 | 0.54 | (a) | 10/20/31 | 5,856 | 5,855 | |||||||||||||
GNMA 2001-61 | 0.69 | (a) | 09/20/30 | 831 | 831 | |||||||||||||
GNMA 2002-15 | 5.50 | 11/20/31 | 57,474 | 61,342 | ||||||||||||||
GNMA 2002-20 | 4.50 | 03/20/32 | 24,363 | 25,914 | ||||||||||||||
GNMA 2002-88 | 5.00 | 05/16/31 | 35,237 | 36,034 | ||||||||||||||
GNMA 2003-11 | 4.00 | 10/17/29 | 44,331 | 45,981 | ||||||||||||||
GNMA 2003-12 | 4.50 | 02/20/32 | 25,498 | 26,769 | ||||||||||||||
GNMA 2003-26 | 0.64 | (a) | 04/16/33 | 14,324 | 14,368 | |||||||||||||
GNMA 2003-97 | 4.50 | 03/20/33 | 59,146 | 62,859 | ||||||||||||||
GNMA 2004-17 | 4.50 | 12/20/33 | 141,826 | 152,301 | ||||||||||||||
GNMA 2004-102 | 5.50 | 04/20/34 | 75,747 | 83,791 | ||||||||||||||
GNMA 2005-56 | 5.00 | 08/20/31 | 53,674 | 54,561 | ||||||||||||||
GNMA 2007-30 | 5.50 | 03/20/35 | 43,981 | 44,370 | ||||||||||||||
GNMA 2008-50 | 5.50 | 06/16/38 | 454,466 | 459,871 | ||||||||||||||
NCUA Guaranteed Notes 2010-C1 | 1.60 | 10/29/20 | 943,188 | 941,282 | ||||||||||||||
Total Mortgage Backed Securities (Cost $4,506,847) | 4,630,025 | |||||||||||||||||
24 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Government Securities Fund (continued)
June 30, 2011 (Unaudited)
MUNICIPAL BONDS | Interest Rate | Maturity Date | Face Amount | Value | ||||||||||||||
(5.4% of portfolio) | ||||||||||||||||||
Arizona State University | 5.38 | % | 07/01/19 | $ | 700,000 | $ | 733,957 | |||||||||||
Bel Aire, Kansas | 7.50 | 05/01/35 | 435,000 | 482,076 | ||||||||||||||
Bel Aire, Kansas | 7.75 | 05/01/41 | 555,000 | 617,543 | ||||||||||||||
Fiscal Year 2005 Securitization Corp. New York | 3.51 | 10/01/12 | 110,000 | 110,221 | ||||||||||||||
Illinois Housing Development Authority, Illinois | 4.13 | 10/20/16 | 1,030,000 | 1,029,990 | ||||||||||||||
Johnson City, Tennessee—Public Building Authority | 7.00 | 09/01/18 | 100,000 | 100,915 | ||||||||||||||
Miami-Dade County, Florida Educational Facilities Authority | 4.32 | 04/01/12 | 695,000 | 713,174 | ||||||||||||||
Miami-Dade County, Florida Educational Facilities Authority | 4.70 | 04/01/14 | 560,000 | 605,338 | ||||||||||||||
Michigan State Housing Development Authority | 4.40 | 04/20/13 | 180,000 | 183,908 | ||||||||||||||
Total Municipal Bonds (Cost $4,561,227) | 4,577,122 | |||||||||||||||||
CORPORATE BONDS | ||||||||||||||||||
(9.5% of portfolio) | ||||||||||||||||||
Ally Bank | 1.00 | 06/10/13 | 250,000 | 249,201 | ||||||||||||||
Bank of the Cascades | 2.65 | 02/12/12 | 1,000,000 | 1,000,167 | ||||||||||||||
BMW Bank of North America | 1.00 | 06/10/13 | 250,000 | 249,201 | ||||||||||||||
Citibank N.A. | 1.50 | 07/12/11 | 350,000 | 350,079 | ||||||||||||||
FirstBank Puerto Rico | 1.65 | 02/20/13 | 250,000 | 252,664 | ||||||||||||||
GE Capital Financial Inc. | 1.00 | 06/10/13 | 250,000 | 249,201 | ||||||||||||||
GE Money Bank | 1.75 | 07/23/13 | 250,000 | 253,116 | ||||||||||||||
General Electric Capital Corp. | 3.00 | 12/09/11 | 1,000,000 | 1,012,236 | ||||||||||||||
GMAC LLC | 2.20 | 12/19/12 | 500,000 | 512,693 | ||||||||||||||
Morgan Stanley | 3.25 | 12/01/11 | 1,000,000 | 1,011,739 | ||||||||||||||
New York Community Bank | 3.00 | 12/16/11 | 1,000,000 | 1,013,152 | ||||||||||||||
Oriental Bank & Trust | 2.75 | 03/16/12 | 1,000,000 | 1,016,982 | ||||||||||||||
Rowan Companies Inc. | 2.80 | 10/20/13 | 564,263 | 578,889 | ||||||||||||||
Southern Community Bank & Trust | 0.76 | (a) | 02/18/14 | 250,000 | 249,732 | |||||||||||||
Total Corporate Bonds (Cost $7,918,799) | 7,999,052 | |||||||||||||||||
U. S. GOVERNMENT AND AGENCY OBLIGATIONS | ||||||||||||||||||
(69.7% of portfolio) | ||||||||||||||||||
FDIC Structured Sale Guaranteed Notes(b) | 0.00 | (c) | 10/25/11 | 1,000,000 | 999,410 | |||||||||||||
FDIC Structured Sale Guaranteed Notes(b) | 0.00 | (c) | 10/25/12 | 1,500,000 | 1,477,515 | |||||||||||||
Government Trust Certificate (Sri Lanka Trust) | 0.60 | (a) | 06/15/12 | 25,000 | 25,015 | |||||||||||||
National Archives Facility Trust | 8.50 | 09/01/19 | 42,971 | 51,768 | ||||||||||||||
Overseas Private Investment Corp. | 5.35 | (d) | 07/31/11 | 1,634,609 | 2,031,672 | |||||||||||||
Overseas Private Investment Corp. | 4.55 | (e) | 09/20/13 | 2,000,000 | 2,314,520 | |||||||||||||
Overseas Private Investment Corp. | 1.45 | (d) | 09/20/13 | 1,000,000 | 1,228,360 | |||||||||||||
Overseas Private Investment Corp. | 1.45 | (d) | 09/20/13 | 3,015,000 | 3,070,928 | |||||||||||||
Overseas Private Investment Corp. | 5.08 | (e) | 12/10/13 | 250,000 | 334,068 | |||||||||||||
Overseas Private Investment Corp. | 3.46 | (d) | 07/12/14 | 1,000,000 | 1,106,100 | |||||||||||||
Overseas Private Investment Corp. | 1.84 | (d) | 07/12/14 | 1,500,000 | 1,542,360 | |||||||||||||
Overseas Private Investment Corp. | 4.10 | 11/15/14 | 102,480 | 107,101 | ||||||||||||||
Overseas Private Investment Corp. | 3.56 | (d) | 12/14/14 | 1,500,000 | 1,666,530 | |||||||||||||
Overseas Private Investment Corp. | 1.62 | (d) | 12/14/14 | 1,000,000 | 994,380 | |||||||||||||
Overseas Private Investment Corp. | 3.74 | 04/15/15 | 77,007 | 80,489 | ||||||||||||||
Overseas Private Investment Corp. | 3.50 | (e) | 05/02/16 | 1,000,000 | 1,103,560 | |||||||||||||
Overseas Private Investment Corp. | 4.81 | (e) | 07/12/16 | 1,000,000 | 1,208,710 | |||||||||||||
Overseas Private Investment Corp. | 4.87 | (e) | 09/07/16 | 1,000,000 | 1,288,930 | |||||||||||||
Overseas Private Investment Corp. | 3.62 | 09/15/16 | 45,695 | 47,944 | ||||||||||||||
Overseas Private Investment Corp. | 4.59 | (e) | 12/09/16 | 1,000,000 | 1,158,450 | |||||||||||||
Overseas Private Investment Corp. | 4.59 | (e) | 12/09/16 | 1,300,000 | 1,505,959 | |||||||||||||
Overseas Private Investment Corp. | 3.56 | (d) | 04/23/17 | 3,000,000 | 3,198,990 | |||||||||||||
Overseas Private Investment Corp. | 4.90 | (e) | 12/10/17 | 1,500,000 | 1,729,020 | |||||||||||||
Overseas Private Investment Corp. | 5.66 | (e) | 06/10/18 | 900,000 | 1,220,049 | |||||||||||||
Overseas Private Investment Corp. | 2.00 | (e) | 06/10/18 | 1,500,000 | 1,565,535 |
Portfolio of Investments | 25 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Government Securities Fund (continued)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(U. S. Government and Agency Obligations continued) | ||||||||||||||||||
Overseas Private Investment Corp. | 1.84 | (e)% | 06/10/18 | $ | 1,000,000 | $ | 1,007,100 | |||||||||||
Overseas Private Investment Corp. | 3.37 | 05/15/21 | 1,000,000 | 997,710 | ||||||||||||||
Philippine Power Trust I(b) | 5.40 | 09/26/18 | 446,429 | 465,473 | ||||||||||||||
Private Export Funding Corp. | 4.97 | 08/15/13 | 1,100,000 | 1,201,708 | ||||||||||||||
Private Export Funding Corp. | 2.13 | 07/15/16 | 500,000 | 499,538 | ||||||||||||||
SALLIE MAE | 7.30 | 08/01/12 | 1,875,000 | 2,014,824 | ||||||||||||||
U.S. Department of Housing and Urban Development | 7.50 | 08/01/11 | 102,000 | 102,605 | ||||||||||||||
U.S. Department of Housing and Urban Development | 4.79 | 08/01/11 | 514,000 | 516,008 | ||||||||||||||
U.S. Department of Housing and Urban Development | 6.93 | 08/01/13 | 340,000 | 340,809 | ||||||||||||||
U.S. Department of Housing and Urban Development | 7.72 | 08/01/13 | 360,000 | 360,667 | ||||||||||||||
U.S. Department of Housing and Urban Development | 6.33 | 08/01/13 | 129,000 | 129,209 | ||||||||||||||
U.S. Department of Housing and Urban Development | 7.63 | 08/01/14 | 90,000 | 90,178 | ||||||||||||||
U.S. Department of Housing and Urban Development | 7.91 | 08/01/17 | 197,000 | 198,175 | ||||||||||||||
U.S. Department of Housing and Urban Development | 5.77 | 08/01/17 | 1,000,000 | 1,055,373 | ||||||||||||||
U.S. Department of Housing and Urban Development | 7.93 | 08/01/18 | 420,000 | 422,519 | ||||||||||||||
U.S. Department of Housing and Urban Development | 6.07 | 08/01/21 | 500,000 | 527,358 | ||||||||||||||
U.S. Department of Housing and Urban Development | 6.12 | 08/01/22 | 1,000,000 | 1,053,630 | ||||||||||||||
United States Treasury Note | 1.38 | 05/15/12 | 4,000,000 | 4,040,312 | ||||||||||||||
United States Treasury Note | 1.50 | 07/15/12 | 1,000,000 | 1,013,047 | ||||||||||||||
United States Treasury Note | 1.38 | 09/15/12 | 3,000,000 | 3,039,375 | ||||||||||||||
United States Treasury Note | 1.13 | 12/15/12 | 1,000,000 | 1,011,289 | ||||||||||||||
United States Treasury Note | 1.38 | 02/15/13 | 3,000,000 | 3,047,694 | ||||||||||||||
United States Treasury Note | 1.38 | 05/15/13 | 1,000,000 | 1,017,420 | ||||||||||||||
United States Treasury Note | 2.38 | 02/28/15 | 2,500,000 | 2,611,725 | ||||||||||||||
United States Treasury Note | 1.50 | 06/30/16 | 1,000,000 | 987,810 | ||||||||||||||
Total U.S. Government and Agency Obligations (Cost $57,879,934) | 58,808,919 | |||||||||||||||||
MONEY MARKET ACCOUNT | Shares | |||||||||||||||||
(7.6% of portfolio) | ||||||||||||||||||
State Street Institutional Liquid Reserves Fund | 0.15 | (f) | 6,371,868 | 6,371,868 | ||||||||||||||
Total Money Market Account (Cost $6,371,868) | 6,371,868 | |||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES (Cost $83,092,567)—100% | $ | 84,368,940 | ||||||||||||||||
(a) | Variable coupon rate as of June 30, 2011. | |
(b) | 144A security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. Total of such securities at period-end amounts to $3,796,424 and represents 4.5% of total investment. | |
(c) | Zero coupon rate. | |
(d) | Interest is paid at maturity. | |
(e) | Interest is paid at put date. | |
(f) | 7-day yield at June 30, 2011. |
26 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund
June 30, 2011 (Unaudited)
CORPORATE BONDS | Interest Rate | Maturity Date | Face Amount | Value | ||||||||||||||
(29.7% of portfolio) | ||||||||||||||||||
BASIC INDUSTRIES—7.6% | ||||||||||||||||||
Atlantic Richfield Co. | 8.50 | % | 04/01/12 | $ | 160,000 | $ | 169,045 | |||||||||||
Atlantic Richfield Co. | 8.60 | 05/15/12 | 1,200,000 | 1,261,691 | ||||||||||||||
Chevron Corp. | 3.45 | 03/03/12 | 250,000 | 255,237 | ||||||||||||||
Danaher Corp. | 1.30 | 06/23/14 | 525,000 | 524,695 | ||||||||||||||
Dun & Bradstreet Corp. | 6.00 | 04/01/13 | 175,000 | 188,099 | ||||||||||||||
Eaton Corp. | 0.58 | (a) | 06/16/14 | 1,025,000 | 1,026,198 | |||||||||||||
Emerson Electric Co. | 0.00 | (a) | 10/26/39 | 125,000 | 123,222 | |||||||||||||
Emerson Electric Co. | 0.00 | (a) | 03/27/40 | 1,100,000 | 1,070,578 | |||||||||||||
General Electric Co. | 5.00 | 02/01/13 | 1,625,000 | 1,724,773 | ||||||||||||||
Ingersoll-Rand Global Holding Co. LTD. | 9.50 | 04/15/14 | 350,000 | 420,262 | ||||||||||||||
PACCAR Inc. | 6.38 | 02/15/12 | 1,300,000 | 1,344,043 | ||||||||||||||
PACCAR Inc. | 1.42 | (a) | 09/14/12 | 1,100,000 | 1,115,599 | |||||||||||||
Pepsico Capital Resources Inc. | 0.00 | (c) | 04/01/12 | 420,000 | 417,922 | |||||||||||||
PPG Industries Inc. | 5.75 | 03/15/13 | 470,000 | 504,871 | ||||||||||||||
SeaRiver Maritime, Inc. | 0.00 | (c) | 09/01/12 | 16,325,000 | 15,895,718 | |||||||||||||
Whirlpool Corp. | 8.00 | 05/01/12 | 125,000 | 132,072 | ||||||||||||||
Total Basic Industries | 26,174,025 | |||||||||||||||||
CONSUMER STAPLES—1.5% | ||||||||||||||||||
Food Products | ||||||||||||||||||
Archer-Daniels Midland Co. | 0.42 | (a) | 08/13/12 | 5,000,000 | 5,009,165 | |||||||||||||
H.J. Heinz Co.(b) | 15.59 | 12/01/20 | 150,000 | 159,350 | ||||||||||||||
Total Consumer Staples | 5,168,515 | |||||||||||||||||
CONSUMER DISCRETIONARY—0.1% | ||||||||||||||||||
Multimedia | ||||||||||||||||||
Walt Disney Co. | 6.38 | 03/01/12 | 475,000 | 493,712 | ||||||||||||||
Total Consumer Discretionary | 493,712 | |||||||||||||||||
FINANCE—15.3% | ||||||||||||||||||
Banks | ||||||||||||||||||
Abbey National Treasury Services Stamford, CT | 1.57 | (a) | 04/25/13 | 1,250,000 | 1,250,021 | |||||||||||||
Allied Irish Banks NY | 2.00 | (a) | 03/02/12 | 3,600,000 | 3,391,801 | |||||||||||||
Allied Irish Banks NY | 2.51 | (a) | 08/13/12 | 3,500,000 | 3,185,728 | |||||||||||||
Allied Irish Banks NY | 3.40 | (a) | 09/28/12 | 2,450,000 | 2,232,109 | |||||||||||||
BA Covered Bond Issuer(b) | 5.50 | 06/14/12 | 800,000 | 830,112 | ||||||||||||||
Bank of America Corp. | 7.23 | 08/15/12 | 200,000 | 209,436 | ||||||||||||||
Citigroup Inc. | 6.00 | 12/13/13 | 975,000 | 1,060,097 | ||||||||||||||
Comerica Bank | 0.40 | (a) | 05/22/12 | 1,169,000 | 1,169,380 | |||||||||||||
Intesa Sanpaolo NY | 0.77 | (a) | 01/19/12 | 1,250,000 | 1,247,976 | |||||||||||||
Intesa Sanpaolo NY | 2.38 | 12/21/12 | 5,000,000 | 5,038,205 | ||||||||||||||
Key Bank N.A. | 7.41 | (a) | 10/15/27 | 1,050,000 | 1,195,387 | |||||||||||||
Landesbank Baden-Wueterttemberg NY | 5.05 | 12/30/15 | 100,000 | 112,666 | ||||||||||||||
Societe Generale NY | 1.26 | (a) | 02/22/13 | 1,250,000 | 1,251,109 | |||||||||||||
Union Bank N.A. | 5.95 | 05/11/16 | 525,000 | 574,098 | ||||||||||||||
US Bank N.A. | 5.92 | 05/25/12 | 292,554 | 304,830 | ||||||||||||||
Consumer Loans | ||||||||||||||||||
American Express Credit Corp. | 7.30 | 08/20/13 | 525,000 | 584,319 | ||||||||||||||
American General Finance Corp. | 4.88 | 07/15/12 | 375,000 | 373,125 | ||||||||||||||
General Electric Capital Corp. | 6.00 | 09/12/11 | 295,000 | 297,469 | ||||||||||||||
General Electric Capital Corp. | 5.25 | 02/21/12 | 480,000 | 493,953 | ||||||||||||||
General Electric Capital Corp. | 8.13 | 05/15/12 | 750,000 | 788,375 | ||||||||||||||
General Electric Capital Corp. | 0.55 | (a) | 03/20/13 | 1,650,000 | 1,637,427 | |||||||||||||
General Electric Capital Corp. | 0.32 | (a) | 12/20/13 | 700,000 | 688,437 | |||||||||||||
General Electric Capital Corp. | 0.40 | (a) | 09/15/14 | 2,350,000 | 2,301,571 |
Portfolio of Investments | 27 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(Corporate Bonds continued) | ||||||||||||||||||
HSBC Finance Corp. | 0.48 | (a)% | 08/09/11 | $ | 1,575,000 | $ | 1,575,323 | |||||||||||
HSBC Finance Corp. | 5.00 | 12/15/11 | 250,000 | 253,167 | ||||||||||||||
Diversified Financial Services | ||||||||||||||||||
CIT Group Inc. | 7.00 | 05/01/14 | 70,812 | 71,697 | ||||||||||||||
CIT Group Inc. | 7.00 | 05/01/15 | 126,977 | 127,136 | ||||||||||||||
CIT Group Inc. | 7.00 | 05/01/16 | 211,629 | 210,835 | ||||||||||||||
CIT Group Inc. | 7.00 | 05/01/17 | 296,280 | 295,539 | ||||||||||||||
Insurance | ||||||||||||||||||
American International Group, Inc. | 5.38 | 10/18/11 | 1,975,000 | 1,994,750 | ||||||||||||||
American International Group, Inc. | 0.39 | (a) | 10/18/11 | 1,650,000 | 1,642,031 | |||||||||||||
American International Group, Inc. | 4.25 | 05/15/13 | 3,425,000 | 3,520,808 | ||||||||||||||
American International Group, Inc. | 3.65 | 01/15/14 | 275,000 | 280,250 | ||||||||||||||
Berkshire Hathaway Finance Corp. | 1.50 | 01/10/14 | 625,000 | 630,554 | ||||||||||||||
Berkshire Hathaway Inc. | 1.40 | 02/10/12 | 2,350,000 | 2,365,005 | ||||||||||||||
Genworth Global Funding | 5.38 | 09/15/11 | 1,590,000 | 1,602,941 | ||||||||||||||
Hartford Life Global Funding | 0.38 | (a) | 01/17/12 | 1,150,000 | 1,147,625 | |||||||||||||
Principal Life Income Funding | 4.08 | (a) | 03/01/12 | 500,000 | 501,495 | |||||||||||||
Protective Life Secured Trust | 5.09 | (a) | 07/10/12 | 750,000 | 749,902 | |||||||||||||
Travelers Insurance Co. Institutional Funding Ltd. | 5.01 | 01/03/13 | 3,700,000 | 3,890,457 | ||||||||||||||
Investment Banker/ Broker | ||||||||||||||||||
Morgan Stanley | 0.59 | (a) | 01/09/14 | 1,775,000 | 1,730,511 | |||||||||||||
52,807,657 | ||||||||||||||||||
HEALTH CARE—1.1% | ||||||||||||||||||
Health Care Equipment & Supplies | ||||||||||||||||||
Johnson & Johnson | 1.20 | 05/15/14 | 1,375,000 | 1,379,110 | ||||||||||||||
Thermo Fisher Scientific Inc. | 2.05 | 02/21/14 | 750,000 | 764,659 | ||||||||||||||
Pharmaceuticals | ||||||||||||||||||
Allergan Inc. | 7.47 | 04/17/12 | 350,000 | 361,274 | ||||||||||||||
Elly Lilly & Co. | 3.55 | 03/06/12 | 225,000 | 229,919 | ||||||||||||||
Novartis Capital Corp. | 1.90 | 04/24/13 | 475,000 | 486,080 | ||||||||||||||
Pfizer Inc. | 4.45 | 03/15/12 | 675,000 | 694,232 | ||||||||||||||
Total Health Care | 3,915,274 | |||||||||||||||||
INFORMATION TECHNOLOGY—0.9% | ||||||||||||||||||
Communication Equipment | ||||||||||||||||||
Dell Inc. | 3.38 | 06/15/12 | 225,000 | 230,547 | ||||||||||||||
Dell Inc. | 1.40 | 09/10/13 | 650,000 | 655,620 | ||||||||||||||
Dell Inc. | 2.10 | 04/01/14 | 1,250,000 | 1,271,973 | ||||||||||||||
Hewlett Packard Co. | 4.25 | 02/24/12 | 975,000 | 998,478 | ||||||||||||||
Total Information Technology | 3,156,618 | |||||||||||||||||
TRANSPORTATION—1.1% | ||||||||||||||||||
Airline | ||||||||||||||||||
Southwest Airlines Inc. | 8.70 | 07/01/11 | 37,506 | 37,513 | ||||||||||||||
Southwest Airlines Inc. | 7.22 | 07/01/13 | 459,580 | 462,453 | ||||||||||||||
Road & Rail | ||||||||||||||||||
Burlington Northern & Santa Fe Railway Co. | 6.20 | 05/01/13 | 225,000 | 245,652 | ||||||||||||||
Burlington Northern & Santa Fe Railway Co. | 4.58 | 01/15/21 | 979,674 | 1,051,294 | ||||||||||||||
Burlington Northern & Santa Fe Railway Co. | 4.83 | 01/15/23 | 150,957 | 160,181 | ||||||||||||||
Consolidated Rail Corp. | 6.76 | 05/25/15 | 73,492 | 80,708 | ||||||||||||||
CSX Transportation Inc. | 8.38 | 10/15/14 | 220,101 | 257,811 | ||||||||||||||
GATX Corp. | 9.00 | 11/15/13 | 213,269 | 244,603 | ||||||||||||||
GATX Corp. | 8.75 | 05/15/14 | 125,000 | 145,362 |
28 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(Corporate Bonds continued) | ||||||||||||||||||
Union Pacific Railroad Co. | 6.73 | % | 12/01/11 | $ | 1,000,000 | $ | 1,023,337 | |||||||||||
Union Pacific Railroad Co. | 6.85 | 01/02/19 | 72,982 | 83,249 | ||||||||||||||
Total Transportation | 3,792,163 | |||||||||||||||||
UTILITIES—2.1% | ||||||||||||||||||
Electric & Gas | ||||||||||||||||||
Aquila Inc. | 11.88 | 07/01/12 | 250,000 | 275,438 | ||||||||||||||
Energy East Corp. | 6.75 | 06/15/12 | 100,000 | 105,380 | ||||||||||||||
FPL Group Capital Inc. | 0.67 | (a) | 11/09/12 | 2,475,000 | 2,482,034 | |||||||||||||
Georgia Power Co. | 0.57 | (a) | 03/15/13 | 1,650,000 | 1,653,816 | |||||||||||||
Michigan Consolidated Gas Co. | 7.06 | 05/01/12 | 325,000 | 338,990 | ||||||||||||||
Southern California Gas Co. | 4.80 | 10/01/12 | 165,000 | 172,796 | ||||||||||||||
Telephone | ||||||||||||||||||
AT&T Corp. | 7.30 | 11/15/11 | 250,000 | 256,056 | ||||||||||||||
Nextel Communications, Inc. | 7.38 | 08/01/15 | 1,350,000 | 1,350,000 | ||||||||||||||
Verizon Communications, Inc. | 1.95 | 03/28/14 | 500,000 | 508,139 | ||||||||||||||
Total Utilities | 7,142,649 | |||||||||||||||||
Total Corporate Bonds (Cost $101,402,036) | 102,650,613 | |||||||||||||||||
YANKEE BONDS | ||||||||||||||||||
(12.9% of portfolio) | ||||||||||||||||||
Abbey National Treasury Services PLC | 2.88 | 04/25/14 | 750,000 | 752,697 | ||||||||||||||
Bank of Ireland(b) | 2.75 | 03/02/12 | 3,030,000 | 2,840,886 | ||||||||||||||
Bayerische Landesbank | 5.05 | 12/20/12 | 3,000,000 | 3,156,600 | ||||||||||||||
BGB Finance Ireland PLC | 7.13 | 02/27/12 | 1,250,000 | 1,301,250 | ||||||||||||||
BP Capital Markets PLC | 2.38 | 12/14/11 | 1,450,000 | 1,461,933 | ||||||||||||||
BP Capital Markets PLC | 3.13 | 03/10/12 | 3,550,000 | 3,611,568 | ||||||||||||||
Commonwealth Bank of Australia(b) | 3.10 | (a) | 03/31/17 | 800,000 | 796,272 | |||||||||||||
Compagnie de Financement Foncier(b) | 2.25 | 03/07/14 | 700,000 | 707,617 | ||||||||||||||
DEPFA ACS Bank | 0.18 | (a) | 06/09/13 | 4,300,000 | 4,124,818 | |||||||||||||
DEPFA ACS Bank(b) | 4.88 | 10/28/15 | 500,000 | 513,602 | ||||||||||||||
Hydro-Quebec | 6.27 | 01/03/26 | 80,000 | 94,880 | ||||||||||||||
International Bank for Reconstruction and Development | 0.00 | (c) | 10/15/11 | 250,000 | 249,565 | |||||||||||||
Irish Life & Permanent(b) | 3.60 | 01/14/13 | 7,900,000 | 6,641,601 | ||||||||||||||
Korea Development Bank | 1.21 | (a) | 11/19/11 | 775,000 | 775,037 | |||||||||||||
Korea Development Bank | 8.00 | 01/23/14 | 500,000 | 569,103 | ||||||||||||||
Norsk Hydro ASA | 9.00 | 04/15/12 | 600,000 | 639,617 | ||||||||||||||
OEBB Infrastruktur AG | 4.75 | 10/28/13 | 1,250,000 | 1,353,056 | ||||||||||||||
OEBB Infrastruktur AG | 4.63 | 11/21/13 | 1,275,000 | 1,371,293 | ||||||||||||||
Royal Bank of Scotland PLC | 3.40 | 08/23/13 | 1,225,000 | 1,253,481 | ||||||||||||||
Royal Bank of Scotland PLC | 3.25 | 01/11/14 | 2,500,000 | 2,534,412 | ||||||||||||||
Royal Philips Electronics NV | 4.63 | 03/11/13 | 475,000 | 501,203 | ||||||||||||||
Sanofi-Aventis | 0.45 | (a) | 03/28/13 | 750,000 | 751,533 | |||||||||||||
Sanofi-Aventis | 1.63 | 03/28/14 | 500,000 | 505,818 | ||||||||||||||
Santander US Debt SA Unipersonal(b) | 0.67 | (a) | 10/21/11 | 975,000 | 974,014 | |||||||||||||
Santander US Debt SA Unipersonal(b) | 2.49 | 01/18/13 | 1,300,000 | 1,287,246 | ||||||||||||||
Santander US Debt SA Unipersonal(b) | 2.99 | 10/07/13 | 1,300,000 | 1,297,043 | ||||||||||||||
Shell International Finance BV | 1.88 | 03/25/13 | 700,000 | 715,060 | ||||||||||||||
Total Capital Canada Ltd. | 1.63 | 01/28/14 | 1,250,000 | 1,268,113 | ||||||||||||||
Trans-Canada Pipelines Ltd. | 8.63 | 05/15/12 | 2,195,000 | 2,342,840 | ||||||||||||||
Total Yankee Bonds (Cost $45,241,908) | 44,392,158 | |||||||||||||||||
Portfolio of Investments | 29 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
ASSET BACKED SECURITIES | Interest Rate | Maturity Date | Face Amount | Value | ||||||||||||||
(17.4% of portfolio) | ||||||||||||||||||
Access Group Inc. 01 | 0.62 | (a)% | 05/25/29 | $ | 2,116,742 | $ | 1,946,497 | |||||||||||
Access Group Inc. 04-A | 0.53 | (a) | 04/25/29 | 1,545,016 | 1,478,246 | |||||||||||||
Access Group Inc. 05 | 0.50 | (a) | 07/25/22 | 1,162,256 | 1,090,668 | |||||||||||||
ACLC Franchise Loan Receivables Trust 97-A(b) | 0.64 | (a) | 09/17/12 | 1,681 | 1,525 | |||||||||||||
ACLC Franchise Loan Receivables Trust 97-B(b) | 6.73 | 04/15/14 | 96,006 | 94,311 | ||||||||||||||
AEP Texas Central Transition Funding 06-A | 4.98 | 07/01/15 | 237,256 | 246,320 | ||||||||||||||
Americredit Automobile Receivables Trust 06-RM | 5.53 | 01/06/14 | 1,623,819 | 1,625,113 | ||||||||||||||
Americredit Automobile Receivables Trust 07-AX | 0.23 | (a) | 10/06/13 | 656,466 | 654,009 | |||||||||||||
Americredit Automobile Receivables Trust 07-CM | 5.55 | 04/07/14 | 98,444 | 100,978 | ||||||||||||||
Americredit Automobile Receivables Trust 07-CM | 0.27 | (a) | 04/07/14 | 738,329 | 736,559 | |||||||||||||
Americredit Automobile Receivables Trust 07-DF | 5.56 | 06/06/14 | 273,922 | 283,764 | ||||||||||||||
Americredit Automobile Receivables Trust 08-AF | 6.96 | 10/14/14 | 400,000 | 420,056 | ||||||||||||||
Americredit Automobile Receivables Trust 10-B | 1.18 | 02/06/14 | 750,214 | 751,714 | ||||||||||||||
Bush Truck Leasing LLC II-A(b) | 5.00 | 09/25/18 | 873,051 | 870,897 | ||||||||||||||
CIT Equipment Collateral 08-VT1 | 6.59 | 12/22/14 | 396,317 | 399,372 | ||||||||||||||
CIT Marine Trust 99-A | 6.25 | 11/15/19 | 264,544 | 255,467 | ||||||||||||||
Community Reinvestment Revenue Notes 19(b) | 4.68 | 08/01/35 | 720,000 | 652,066 | ||||||||||||||
CPS Auto Trust 07-C(b) | 5.92 | 05/15/14 | 1,125,309 | 1,159,377 | ||||||||||||||
CPS Auto Trust 08-A(b) | 6.48 | 07/15/13 | 213,875 | 219,885 | ||||||||||||||
CPS Auto Trust 10-A(b) | 2.89 | 03/15/16 | 201,244 | 201,824 | ||||||||||||||
CPS Auto Trust 11-A(b) | 2.82 | 04/15/18 | 230,667 | 230,910 | ||||||||||||||
Credit Acceptance Auto Loan Trust 09-1(b) | 3.96 | 11/15/16 | 964,121 | 966,540 | ||||||||||||||
First Financial Credit Card Master Note Trust II 10-B(b) | 3.00 | 07/17/17 | 3,050,000 | 3,072,388 | ||||||||||||||
First Financial Credit Card Master Note Trust II 10-C(b) | 5.19 | 09/17/18 | 450,000 | 449,300 | ||||||||||||||
First Financial Credit Card Master Note Trust II 10-D(b) | 3.72 | 06/17/19 | 1,725,000 | 1,756,355 | ||||||||||||||
First National Master Note Trust 09-3 | 1.54 | (a) | 07/15/15 | 1,450,000 | 1,461,335 | |||||||||||||
Ford Credit Auto Owner Trust 07-A | 5.47 | 06/15/12 | 149,824 | 150,970 | ||||||||||||||
GS Auto Loan Trust 07-1 | 5.48 | 12/15/14 | 1,113,396 | 1,148,028 | ||||||||||||||
KeyCorp Student Loan Trust 99-B | 0.69 | (a) | 08/25/27 | 94,980 | 93,559 | |||||||||||||
KeyCorp Student Loan Trust 00-A | 0.58 | (a) | 05/25/29 | 2,271,220 | 2,068,629 | |||||||||||||
KeyCorp Student Loan Trust 00-B | 0.58 | (a) | 07/25/29 | 1,930,480 | 1,538,712 | |||||||||||||
KeyCorp Student Loan Trust 01-A | 0.52 | (a) | 06/27/31 | 1,082,850 | 776,527 | |||||||||||||
KeyCorp Student Loan Trust 04-A | 0.57 | (a) | 10/28/41 | 724,714 | 684,554 | |||||||||||||
KeyCorp Student Loan Trust 04-A | 0.70 | (a) | 01/27/43 | 959,800 | 802,657 | |||||||||||||
KeyCorp Student Loan Trust 05-A | 0.38 | (a) | 03/27/24 | 134,328 | 132,489 | |||||||||||||
KeyCorp Student Loan Trust 05-A | 0.65 | (a) | 09/27/40 | 848,153 | 722,033 | |||||||||||||
KeyCorp Student Loan Trust 06-A | 0.33 | (a) | 06/27/25 | 412,465 | 406,405 | |||||||||||||
LAI Vehicle Lease Securitization Trust 10-A(b) | 2.55 | 09/15/16 | 1,208,102 | 1,209,286 | ||||||||||||||
Long Beach Auto Receivables Trust 06-B | 5.18 | 09/15/13 | 204,102 | 204,415 | ||||||||||||||
Long Beach Auto Receivables Trust 07-A | 5.03 | 01/15/14 | 103,130 | 103,785 | ||||||||||||||
Marriott Vacation Club Owners Trust 06-1A(b) | 5.74 | 04/20/28 | 118,122 | 122,094 | ||||||||||||||
Marriott Vacation Club Owners Trust 08-1A(b) | 7.20 | 05/20/30 | 335,847 | 364,263 | ||||||||||||||
Merrill Auto Trust Securitization 07-01 | 0.25 | (a) | 12/15/13 | 214,060 | 214,033 | |||||||||||||
National Collegiate Student Loan Trust 04-1 | 0.51 | (a) | 06/25/27 | 4,975,571 | 4,634,156 | |||||||||||||
National Collegiate Student Loan Trust 05-1 | 0.33 | (a) | 10/26/26 | 963,812 | 936,669 | |||||||||||||
National Collegiate Student Loan Trust 05-3 | 0.43 | (a) | 07/25/28 | 700,000 | 611,486 | |||||||||||||
National Collegiate Student Loan Trust 06-1 | 0.38 | (a) | 05/25/26 | 825,000 | 724,917 | |||||||||||||
National Collegiate Student Loan Trust 07-1 | 0.23 | (a) | 06/25/25 | 1,285,839 | 1,274,162 | |||||||||||||
Prestige Auto Receivables Trust 09-1A(b) | 5.67 | 04/15/17 | 291,785 | 296,248 | ||||||||||||||
Santander Drive Auto Receivables Trust 11-2 | 2.66 | 01/15/16 | 2,000,000 | 1,999,594 | ||||||||||||||
SLC Student Loan Trust 06-A | 0.58 | (a) | 07/15/36 | 1,450,000 | 1,189,366 | |||||||||||||
SLC Student Loan Trust 06-A | 0.73 | (a) | 07/15/36 | 2,375,000 | 1,587,905 | |||||||||||||
SLM Student Loan Trust 03-B | 0.65 | (a) | 03/15/22 | 4,163,854 | 4,053,871 | |||||||||||||
SLM Student Loan Trust 04-A | 0.45 | (a) | 03/16/20 | 1,675,644 | 1,624,824 | |||||||||||||
SLM Student Loan Trust 05-A | 0.39 | (a) | 12/15/20 | 238,787 | 232,378 | |||||||||||||
SLM Student Loan Trust 06-A | 0.33 | (a) | 12/15/20 | 13,765 | 13,742 | |||||||||||||
SLM Student Loan Trust 06-C | 0.38 | (a) | 06/15/21 | 1,300,000 | 1,249,969 | |||||||||||||
SLM Student Loan Trust 07-A | 0.37 | (a) | 09/15/25 | 3,250,000 | 3,033,293 | |||||||||||||
Small Business Administration 02-20K | 5.08 | 11/01/22 | 135,670 | 145,522 |
30 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(Asset Backed Securities continued) | ||||||||||||||||||
Small Business Administration 03-10B | 3.39 | % | 03/01/13 | $ | 34,341 | $ | 34,806 | |||||||||||
Small Business Administration 03-P10B | 5.14 | 08/10/13 | 31,717 | 33,535 | ||||||||||||||
Small Business Administration 05-10E | 4.54 | 09/01/15 | 91,019 | 95,070 | ||||||||||||||
Tidewater Auto Receivable Trust 10-A(b) | 5.92 | 05/15/17 | 195,114 | 200,001 | ||||||||||||||
Triad Automobile Receivables Trust 07-A | 0.25 | (a) | 02/12/14 | 1,179,446 | 1,173,881 | |||||||||||||
World Financial Network Credit Card Master Trust 09-A | 4.60 | 09/15/15 | 2,950,000 | 2,991,125 | ||||||||||||||
Total Asset Backed Securities (Cost $57,159,317) | 60,004,435 | |||||||||||||||||
MORTGAGE BACKED SECURITIES | ||||||||||||||||||
(10.7% of portfolio) | ||||||||||||||||||
ABN Amro Mortgage Corp. 03-9 | 4.52 | 08/25/18 | 521,237 | 489,765 | ||||||||||||||
Accredited Mortgage Loan Trust 03-1 | 4.33 | (a) | 06/25/33 | 210,157 | 170,573 | |||||||||||||
ACE Securities Corp. 06-ASL1 | 0.33 | (a) | 02/25/36 | 658,295 | 139,187 | |||||||||||||
ACE Securities Corp. 06-GP1 | 0.32 | (a) | 02/25/31 | 249,573 | 199,411 | |||||||||||||
ACE Securities Corp. 06-SL1 | 0.51 | (a) | 09/25/35 | 213,115 | 44,077 | |||||||||||||
Adjustable Rate Mortgage Trust 05-10 | 2.94 | (a) | 01/25/36 | 151,956 | 99,564 | |||||||||||||
American Business Financial Services 02-1 | 7.01 | 12/15/32 | 70,656 | 42,731 | ||||||||||||||
American Home Mortgage Investment Trust 05-01 | 2.40 | (a) | 06/25/45 | 320,317 | 288,853 | |||||||||||||
American Home Mortgage Investment Trust 05-03 | 4.97 | 09/25/35 | 49,401 | 47,552 | ||||||||||||||
Amresco Residential Securities 98-1 | 7.57 | 10/25/27 | 91,338 | 95,178 | ||||||||||||||
Banc of America Alternative Loan Trust Inc. 07-2 | 5.75 | 06/25/37 | 234,008 | 175,001 | ||||||||||||||
Banc of America Funding Corp. 04-A | 4.95 | (a) | 09/20/34 | 70,822 | 70,837 | |||||||||||||
Banc of America Funding Corp. 05-G | 5.20 | (a) | 10/20/35 | 1,040,074 | 977,995 | |||||||||||||
Banc of America Funding Corp. 07-5 | 6.50 | 07/25/37 | 141,089 | 129,380 | ||||||||||||||
Banc of America Mortgage Securities Inc. 02-J | 3.81 | (a) | 09/25/32 | 3,696 | 3,525 | |||||||||||||
Banc of America Mortgage Securities Inc. 05-1 | 5.00 | 02/25/20 | 68,504 | 68,854 | ||||||||||||||
Banc of America Mortgage Securities Inc. 05-C | 2.89 | (a) | 04/25/35 | 81,565 | 68,394 | |||||||||||||
Bayview Financial Asset Trust 07-SR1A(b) | 0.64 | (a) | 03/25/37 | 308,797 | 237,774 | |||||||||||||
Bear Stearns Adjustable Rate Mortgage Trust 04-10 | 2.93 | (a) | 01/25/35 | 513,998 | 447,555 | |||||||||||||
Bear Stearns Adjustable Rate Mortgage Trust 05-12 | 5.38 | (a) | 02/25/36 | 103,993 | 92,034 | |||||||||||||
Bear Stearns ALT-A Trust 04-11 | 3.15 | (a) | 11/25/34 | 26,495 | 19,426 | |||||||||||||
Bear Stearns ALT-A Trust 05-4 | 2.63 | (a) | 05/25/35 | 158,584 | 124,499 | |||||||||||||
Bear Stearns ALT-A Trust 05-9 | 5.34 | (a) | 11/25/35 | 103,370 | 68,989 | |||||||||||||
Bear Stearns ALT-A Trust 06-6 | 4.03 | (a) | 11/25/36 | 248,547 | 157,342 | |||||||||||||
Bear Stearns Asset Backed Securities Trust 03-3 | 0.78 | (a) | 06/25/43 | 83,856 | 74,636 | |||||||||||||
Bear Stearns Asset Backed Securities Trust 04-HE5 | 1.44 | (a) | 07/25/34 | 390,000 | 257,897 | |||||||||||||
Bear Stearns Structured Products Inc., 00-1 | 3.42 | (a) | 08/28/33 | 11,800 | 10,876 | |||||||||||||
CDC Mortgage Capital Trust 02-HE1 | 0.81 | (a) | 01/25/33 | 503,759 | 379,772 | |||||||||||||
Chase Mortgage Finance Corp. 03-S2 | 5.00 | 03/25/18 | 26,269 | 26,698 | ||||||||||||||
Chase Mortgage Finance Corp. 05-A1 | 5.38 | (a) | 12/25/35 | 45,681 | 43,264 | |||||||||||||
Chaseflex Trust 05-2 | 6.00 | 06/25/35 | 168,417 | 151,755 | ||||||||||||||
CITICORP Mortgage Securities, Inc. 88-11 | 2.01 | (a) | 08/25/18 | 26,533 | 26,088 | |||||||||||||
CITICORP Mortgage Securities, Inc. 88-17 | 2.05 | (a) | 11/25/18 | 39,165 | 38,569 | |||||||||||||
CITICORP Mortgage Securities, Inc. 07-1 | 5.50 | 01/25/22 | 226,977 | 223,989 | ||||||||||||||
CITICORP Mortgage Securities, Inc. 07-1 | 5.89 | (d) | 03/25/37 | 350,000 | 334,581 | |||||||||||||
Citigroup Mortgage Loan Trust, Inc. 05-7 | 2.46 | (a) | 09/25/35 | 399,131 | 214,643 | |||||||||||||
Cityscape Home Equity Loan Trust 96-2 | 8.10 | 08/25/26 | 134,311 | 137,196 | ||||||||||||||
CMO Trust 17 | 7.25 | 04/20/18 | 772 | 828 | ||||||||||||||
Conseco Finance Securitizations Corp. 01-2 | 6.60 | 02/01/33 | 237,902 | 236,777 | ||||||||||||||
Contimortgage Home Equity Loan Trust 95-2 | 8.10 | 08/15/25 | 39,125 | 38,763 | ||||||||||||||
Countrywide Alternative Loan Trust 04-24CB | 6.00 | 11/25/34 | 97,708 | 95,116 | ||||||||||||||
Countrywide Alternative Loan Trust 05-11CB | 5.50 | 06/25/35 | 214,150 | 196,196 | ||||||||||||||
Countrywide Alternative Loan Trust 05-43 | 5.34 | (a) | 10/25/35 | 63,163 | 49,737 | |||||||||||||
Countrywide Asset Backed Certificate 02-S2 | 5.98 | 01/25/17 | 294,133 | 278,788 | ||||||||||||||
Countrywide Asset Backed Certificate 02-S4 | 5.22 | (a) | 10/25/17 | 450,581 | 423,749 | |||||||||||||
Countrywide Asset Backed Certificate 04-S1 | 4.62 | 02/25/35 | 117,543 | 110,768 | ||||||||||||||
Countrywide Asset Backed Certificate 06-S7 | 5.71 | (a) | 11/25/35 | 179,054 | 126,077 |
Portfolio of Investments | 31 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(Mortgage Backed Securities continued) | ||||||||||||||||||
Countrywide Asset Backed Certificate 07-S1 | 5.69 | % | 11/25/36 | $ | 220,996 | $ | 178,440 | |||||||||||
Countrywide Asset Backed Certificate 07-S3 | 0.33 | (a) | 05/25/37 | 109,683 | 106,230 | |||||||||||||
Countrywide Home Loans 03-49 | 4.57 | (a) | 12/19/33 | 109,879 | 104,665 | |||||||||||||
Countrywide Home Loans 03-J13 | 5.25 | 01/25/24 | 254,532 | 251,168 | ||||||||||||||
Countrywide Home Loans 05-HYB8 | 5.10 | (a) | 12/20/35 | 226,091 | 176,298 | |||||||||||||
Countrywide Home Loans 06-HYB5 | 3.42 | (a) | 09/20/36 | 113,731 | 64,674 | |||||||||||||
Credit Suisse First Boston Mortgage 03-21 | 4.75 | 08/25/18 | 141,681 | 145,281 | ||||||||||||||
Credit Suisse First Boston Mortgage 03-AR24 | 2.67 | (a) | 10/25/33 | 400,761 | 339,141 | |||||||||||||
Credit Suisse First Boston Mortgage 03-FFA | 6.10 | (a) | 02/25/33 | 261,148 | 242,704 | |||||||||||||
Credit Suisse First Boston Mortgage 04-AR3 | 2.72 | (a) | 04/25/34 | 114,104 | 106,983 | |||||||||||||
Credit Suisse First Boston Mortgage 05-10 | 5.25 | 11/25/20 | 306,390 | 289,433 | ||||||||||||||
Credit Suisse First Boston Mortgage 06-1 | 0.32 | (a) | 05/25/36 | 351,837 | 333,644 | |||||||||||||
Credit Suisse First Boston Mortgage 06-2 | 5.41 | (a) | 07/25/36 | 1,120,000 | 162,512 | |||||||||||||
DLJ Mortgage Acceptance Corp. 91-3 | 2.11 | (a) | 01/25/21 | 28,666 | 27,236 | |||||||||||||
Encore Credit Receivables Trust 05-3 | 0.68 | (a) | 10/25/35 | 675,000 | 459,461 | |||||||||||||
FHLMC 2419 | 5.50 | 03/15/17 | 5,298 | 5,854 | ||||||||||||||
FHLMC 2586 | 3.50 | 12/15/32 | 75,711 | 76,329 | ||||||||||||||
FHLMC 2649 | 4.50 | 07/15/18 | 422,669 | 451,062 | ||||||||||||||
FHLMC 3061 | 5.50 | 07/15/16 | 357,059 | 384,324 | ||||||||||||||
FHLMC 780754 | 4.65 | (a) | 08/01/33 | 20,019 | 21,134 | |||||||||||||
FHLMC R009 | 5.75 | 12/15/18 | 117,786 | 122,189 | ||||||||||||||
FHLMC R010 | 5.50 | 12/15/19 | 371,186 | 389,474 | ||||||||||||||
FHLMC R013 | 6.00 | 12/15/21 | 82,466 | 85,280 | ||||||||||||||
First Alliance Mortgage Loan Trust 94-1 | 5.85 | 04/25/25 | 21,269 | 17,313 | ||||||||||||||
First Alliance Mortgage Loan Trust 94-2 | 7.63 | 07/25/25 | 22,591 | 20,348 | ||||||||||||||
First Alliance Mortgage Loan Trust 94-3 | 7.83 | 10/25/25 | 526 | 503 | ||||||||||||||
First Horizon Mortgage Alternative Mortgage Securities 04-AA3 | 2.31 | (a) | 09/25/34 | 43,864 | 39,618 | |||||||||||||
First Horizon Mortgage Pass-Through Trust 05-AR2 | 2.66 | (a) | 05/25/35 | 226,055 | 197,974 | |||||||||||||
FNMA 03-05 | 4.25 | 08/25/22 | 56,388 | 58,335 | ||||||||||||||
FNMA 03-38 | 5.00 | 03/25/23 | 83,557 | 89,170 | ||||||||||||||
FNMA 03-81 | 4.75 | 09/25/18 | 92,056 | 96,458 | ||||||||||||||
FNMA 03-86 | 4.50 | 09/25/18 | 311,188 | 330,608 | ||||||||||||||
FNMA 04-34 | 5.50 | 05/25/19 | 342,108 | 355,310 | ||||||||||||||
FNMA 813842 | 1.97 | (a) | 01/01/35 | 31,135 | 32,297 | |||||||||||||
GMAC Mortgage Corp. Loan Trust 05-AR3 | 3.09 | (a) | 06/19/35 | 93,987 | 88,916 | |||||||||||||
GMAC Mortgage Corp. Loan Trust 06-HE3 | 5.75 | 10/25/36 | 98,499 | 64,619 | ||||||||||||||
GMAC Mortgage Corp. Loan Trust 07-HE1 | 5.95 | 08/25/37 | 1,100,000 | 743,490 | ||||||||||||||
GNMA 02-15 | 5.50 | 11/20/31 | 42,531 | 45,393 | ||||||||||||||
GNMA 02-88 | 5.00 | 05/16/31 | 17,619 | 18,017 | ||||||||||||||
GNMA 03-11 | 4.00 | 10/17/29 | 230,180 | 238,749 | ||||||||||||||
GNMA 03-12 | 4.50 | 02/20/32 | 50,996 | 53,539 | ||||||||||||||
GNMA 03-26 | 0.64 | (a) | 04/16/33 | 32,228 | 32,327 | |||||||||||||
GNMA 04-17 | 4.50 | 12/20/33 | 59,419 | 63,807 | ||||||||||||||
GNMA 583189 | 4.50 | 02/20/17 | 27,976 | 30,137 | ||||||||||||||
Green Tree Financial Corp. 98-5 | 6.22 | 03/01/30 | 193,764 | 207,389 | ||||||||||||||
GS Mortgage Loan Trust 03-3F | 5.00 | 04/25/33 | 22,261 | 22,588 | ||||||||||||||
GS Mortgage Loan Trust 03-10 | 4.70 | (a) | 10/25/33 | 271,117 | 262,531 | |||||||||||||
GS Mortgage Loan Trust 05-8F | 5.50 | 10/25/20 | 127,956 | 123,596 | ||||||||||||||
GS Mortgage Loan Trust 05-AR3 | 2.77 | (a) | 05/25/35 | 140,417 | 112,922 | |||||||||||||
GS Mortgage Loan Trust 05-AR6 | 2.72 | (a) | 09/25/35 | 100,443 | 88,766 | |||||||||||||
Home Equity Mortgage Trust 06-1 | 5.30 | (a) | 05/25/36 | 1,430,000 | 546,705 | |||||||||||||
Home Savings of America 9 | 3.95 | (a) | 11/25/17 | 142,796 | 142,710 | |||||||||||||
Home Savings of America 11 | 4.85 | (a) | 01/25/18 | 201,011 | 200,203 | |||||||||||||
Household Home Equity Loan Trust 06-2 | 0.34 | (a) | 03/20/36 | 1,360,765 | 1,249,977 | |||||||||||||
Household Home Equity Loan Trust 07-3 | 0.99 | (a) | 11/20/36 | 93,940 | 93,886 | |||||||||||||
IMPAC Secured Assets Corp. 03-3 | 4.20 | 08/25/32 | 310,520 | 314,703 | ||||||||||||||
Indymac Indx Mortgage Loan Trust 04-AR6 | 3.04 | (a) | 10/25/34 | 14,337 | 11,692 | |||||||||||||
Indymac Indx Mortgage Loan Trust 05-AR15 | 4.95 | (a) | 09/25/35 | 62,926 | 51,158 | |||||||||||||
Indymac Indx Mortgage Loan Trust 05-L1 | 0.39 | (a) | 07/25/13 | 308,084 | 87,989 |
32 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(Mortgage Backed Securities continued) | ||||||||||||||||||
JP Morgan Mortgage Trust 04-A3 | 4.90 | (a)% | 07/25/34 | $ | 158,913 | $ | 156,868 | |||||||||||
JP Morgan Mortgage Trust 05-A2 | 5.11 | (a) | 04/25/35 | 608,672 | 587,860 | |||||||||||||
JP Morgan Residential Mortgage Acceptance Corp. 06-R1(b) | 2.89 | (a) | 09/28/44 | 392,067 | 369,527 | |||||||||||||
Lehman ABS Manufactured Housing Contract 01-B | 4.35 | 05/15/14 | 140,298 | 141,896 | ||||||||||||||
Long Beach Mortgage Loan Trust 05-3 | 0.47 | (a) | 08/25/45 | 126,491 | 122,341 | |||||||||||||
Master Adjustable Rate Mortgages Trust 04-13 | 2.80 | (a) | 04/21/34 | 62,426 | 60,791 | |||||||||||||
Master Adjustable Rate Mortgages Trust 05-1 | 5.26 | (a) | 01/25/35 | 50,945 | 46,129 | |||||||||||||
Master Alternative Loans Trust 03-5 | 6.00 | 08/25/33 | 94,350 | 96,295 | ||||||||||||||
Master Asset Backed Securities Trust 07-NCW(b) | 0.49 | (a) | 05/25/37 | 801,856 | 703,032 | |||||||||||||
Master Asset Securitization Trust 03-6 | 5.00 | 07/25/18 | 37,778 | 38,636 | ||||||||||||||
Master Asset Securitization Trust 07-1 | 6.00 | 10/25/22 | 109,580 | 106,510 | ||||||||||||||
Merrill Lynch Mortgage Investors Trust 03-A2 | 1.90 | (a) | 02/25/33 | 57,006 | 54,565 | |||||||||||||
Merrill Lynch Mortgage Investors Trust 06-SL1 | 0.37 | (a) | 09/25/36 | 597,294 | 365,889 | |||||||||||||
Morgan Stanley Capital Inc. 04-1 | 5.00 | 11/25/18 | 290,753 | 297,644 | ||||||||||||||
Morgan Stanley Mortgage Loan Trust 05-5AR | 5.32 | (a) | 09/25/35 | 63,047 | 46,177 | |||||||||||||
Morgan Stanley Mortgage Loan Trust 06-1AR | 2.93 | (a) | 02/25/36 | 175,201 | 98,658 | |||||||||||||
Morgan Stanley Mortgage Loan Trust 07-10XS | 6.00 | 07/25/47 | 611,578 | 253,902 | ||||||||||||||
MSDWCC HELOC Trust 03-2A | 0.71 | (a) | 04/25/16 | 425,687 | 394,772 | |||||||||||||
New Century Home Equity Loan Trust 97-NC5 | 7.20 | 10/25/28 | 233 | 236 | ||||||||||||||
Nomura Asset Acceptance Corporation 06-AF2 | 0.29 | (a) | 08/25/36 | 204,350 | 59,068 | |||||||||||||
Nomura Asset Acceptance Corporation 07-1 | 5.96 | 03/25/47 | 331,393 | 270,459 | ||||||||||||||
Novastar Home Equity Loan 06-3 | 0.30 | (a) | 10/25/36 | 26,663 | 26,347 | |||||||||||||
Oakwood Mortgage Investors, Inc. 99-D | 7.84 | 11/15/29 | 384,764 | 378,985 | ||||||||||||||
Oakwood Mortgage Investors, Inc. 02-A | 0.44 | (a) | 09/15/14 | 219,333 | 175,794 | |||||||||||||
Option One Mortgage Loan Trust 07-6 | 0.25 | (a) | 07/25/37 | 1,658,047 | 1,598,153 | |||||||||||||
Option One Mortgage Loan Trust 07-FXD1 | 5.60 | 01/25/37 | 1,335,000 | 1,120,933 | ||||||||||||||
Option One Mortgage Loan Trust 07-FXD2 | 5.90 | 03/25/37 | 76,412 | 73,154 | ||||||||||||||
Ownit Mortgage Loan Asset Backed Certificate 05-5 | 0.48 | (a) | 10/25/36 | 481,369 | 422,781 | |||||||||||||
Prime Mortgage Trust 05-2 | 5.00 | 07/25/20 | 145,499 | 148,859 | ||||||||||||||
Residential Accredit Loans, Inc. 02-QS9 | 0.79 | (a) | 07/25/32 | 6,861 | 5,973 | |||||||||||||
Residential Accredit Loans, Inc. 05-QS5 | 5.70 | 04/25/35 | 70,556 | 62,196 | ||||||||||||||
Residential Accredit Loans, Inc. 06-QS4 | 6.00 | 04/25/36 | 511,512 | 356,483 | ||||||||||||||
Residential Asset Mortgage Products Inc. 02-RS5 | 4.75 | 09/25/32 | 289,826 | 244,619 | ||||||||||||||
Residential Asset Mortgage Products Inc. 03-RZ3 | 4.12 | 06/25/33 | 158,067 | 90,511 | ||||||||||||||
Residential Asset Securitization Trust 04-A3 | 5.25 | 06/25/34 | 122,760 | 118,598 | ||||||||||||||
Residential Asset Securitization Trust 05-A14 | 5.50 | 12/25/35 | 285,367 | 237,990 | ||||||||||||||
Residential Funding Mortgage Securities 00-HI5 | 7.98 | (a) | 12/25/25 | 751,876 | 692,928 | |||||||||||||
Residential Funding Mortgage Securities 03-HS2 | 3.88 | 07/25/33 | 94,166 | 83,585 | ||||||||||||||
Residential Funding Mortgage Securities I 03-S15 | 4.50 | 08/25/18 | 100,676 | 102,928 | ||||||||||||||
Residential Funding Mortgage Securities I 05-SA2 | 2.91 | (a) | 06/25/35 | 49,219 | 32,854 | |||||||||||||
Residential Funding Mortgage Securities I 06-SA1 | 5.60 | (a) | 02/25/36 | 57,809 | 42,194 | |||||||||||||
Ryland Acceptance Corp. 64 E | 3.50 | (a) | 04/01/18 | 44,835 | 45,182 | |||||||||||||
SACO I Trust 05-6 | 0.77 | (a) | 09/25/35 | 601,373 | 271,359 | |||||||||||||
Salomon Brothers Mortgage Securities 97-LB6 | 6.82 | 12/25/27 | 28 | 29 | ||||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 04-3AC | 2.43 | (a) | 03/25/34 | 28,985 | 27,838 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 04-4 | 5.48 | (a) | 04/25/34 | 2,252,518 | 2,201,616 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 04-8 | 2.70 | (a) | 07/25/34 | 46,587 | 46,371 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 04-8 | 2.70 | (a) | 07/25/34 | 29,949 | 29,810 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 04-11 | 2.63 | (a) | 08/25/34 | 53,280 | 47,952 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 04-18 | 2.70 | (a) | 12/25/34 | 110,308 | 32,300 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 05-11 | 2.58 | (a) | 05/25/35 | 487,787 | 385,391 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 06-1 | 5.50 | (a) | 02/25/36 | 54,441 | 39,208 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 06-1 | 5.57 | (a) | 02/25/36 | 167,540 | 156,064 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 06-4 | 5.49 | (a) | 05/25/36 | 149,086 | 116,546 | |||||||||||||
Structured Adjustable Rate Mortgage Loan Trust 06-4 | 5.59 | (a) | 05/25/36 | 156,073 | 123,952 | |||||||||||||
Structured Asset Mortgage Investments 04-AR5 | 2.26 | (a) | 10/19/34 | 38,780 | 31,300 | |||||||||||||
Structured Asset Securities Corp. 98-RF1(b) | 8.08 | (a) | 04/15/27 | 51,895 | 51,773 | |||||||||||||
Structured Asset Securities Corp. 03-8 | 5.00 | 04/25/33 | 92,194 | 94,405 | ||||||||||||||
Structured Asset Securities Corp. 03-21 | 5.50 | 07/25/33 | 33,979 | 33,950 |
Portfolio of Investments | 33 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(Mortgage Backed Securities continued) | ||||||||||||||||||
Structured Asset Securities Corp. 03-37A | 2.52 | (a)% | 12/25/33 | $ | 303,879 | $ | 258,955 | |||||||||||
Structured Asset Securities Corp. 04-3 | 5.46 | (a) | 03/25/24 | 301,173 | �� | 309,863 | ||||||||||||
Terwin Mortgage Trust 04-5HE | 0.78 | (a) | 06/25/35 | 862,087 | 740,499 | |||||||||||||
Vanderbilt Mortgage & Finance 03-A | 0.84 | (a) | 05/07/26 | 402,674 | 374,776 | |||||||||||||
Wachovia Mortgage Loan Trust 06-A | 4.97 | (a) | 05/20/36 | 253,313 | 239,166 | |||||||||||||
Washington Mutual Mortgage Securities Corp. 04-AR3 | 2.58 | (a) | 06/25/34 | 100,626 | 97,782 | |||||||||||||
Washington Mutual Mortgage Securities Corp. 04-AR14 | 2.58 | (a) | 01/25/35 | 166,231 | 159,634 | |||||||||||||
Washington Mutual Mortgage Securities Corp. 05-AR7 | 2.60 | (a) | 08/25/35 | 30,727 | 30,387 | |||||||||||||
Washington Mutual Mortgage Securities Corp. 05-AR12 | 2.72 | (a) | 10/25/35 | 18,856 | 17,670 | |||||||||||||
Washington Mutual MSC Mortgage Pass-Through | ||||||||||||||||||
Certificates 03-MS2 | 5.00 | 03/25/18 | 118,482 | 120,817 | ||||||||||||||
Wells Fargo Mortgage Backed Securities Trust 03-6 | 5.00 | 06/25/18 | 27,327 | 28,303 | ||||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-B | 4.91 | (a) | 02/25/34 | 52,888 | 53,663 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-BB | 2.75 | (a) | 01/25/35 | 30,450 | 29,772 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-E | 4.88 | (a) | 05/25/34 | 75,883 | 76,754 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-EE | 2.87 | (a) | 12/25/34 | 38,501 | 38,339 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-F | 4.71 | (a) | 06/25/34 | 518,312 | 512,670 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-I | 2.86 | (a) | 07/25/34 | 7,609 | 7,237 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-K | 2.76 | (a) | 07/25/34 | 178,731 | 179,848 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-K | 4.71 | (a) | 07/25/34 | 100,594 | 102,793 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-K | 4.71 | (a) | 07/25/34 | 341,533 | 346,155 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 04-R | 2.85 | (a) | 09/25/34 | 99,435 | 98,529 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 05-AR13 | 5.25 | (a) | 05/25/35 | 159,682 | 153,705 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 05-AR14 | 5.36 | (a) | 08/25/35 | 58,837 | 58,107 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 05-AR15 | 5.04 | (a) | 09/25/35 | 410,288 | 382,451 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 05-AR16 | 5.20 | (a) | 10/25/35 | 99,141 | 96,459 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 06-AR4 | 5.62 | (a) | 04/25/36 | 80,601 | 73,759 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 06-AR19 | 5.45 | (a) | 12/25/36 | 50,262 | 46,065 | |||||||||||||
Wells Fargo Mortgage Backed Securities Trust 06-16 | 5.00 | 11/25/36 | 7,237 | 7,229 | ||||||||||||||
Total Mortgage Backed Securities (Cost $41,917,950) | 37,056,071 | |||||||||||||||||
MUNICIPAL BONDS | ||||||||||||||||||
(16.8% of portfolio) | ||||||||||||||||||
Amsterdam New York | 1.50 | 08/10/11 | 805,000 | 805,765 | ||||||||||||||
Carteret NJ Redevelopment Agency | 2.00 | 11/21/12 | 550,000 | 550,737 | ||||||||||||||
Casino Reinvestment Development Authority NJ | 5.14 | 06/01/15 | 1,475,000 | 1,498,202 | ||||||||||||||
Cuyahoga County Ohio Economic Development | 3.22 | 12/01/14 | 1,725,000 | 1,739,387 | ||||||||||||||
Detroit Michigan | 4.97 | 05/01/13 | 300,000 | 302,262 | ||||||||||||||
Detroit Michigan City School District | 5.00 | 05/01/13 | 135,000 | 141,948 | ||||||||||||||
Downtown Smyrna Development Authority GA | 3.21 | 02/01/15 | 100,000 | 102,271 | ||||||||||||||
Fiscal Year 2005 Securitization Corp. New York | 3.51 | 10/01/12 | 125,000 | 125,251 | ||||||||||||||
Florida State Municipal Power Agency | 4.87 | 10/01/11 | 1,975,000 | 1,989,773 | ||||||||||||||
Genesee County Michigan | 1.69 | (a) | 09/01/12 | 795,000 | 795,000 | |||||||||||||
Greater Orlando Florida Aviation Authority | 5.00 | 10/01/12 | 275,000 | 288,791 | ||||||||||||||
Illinois Municipal Electric Agency | 2.47 | 02/01/13 | 585,000 | 586,100 | ||||||||||||||
Illinois Municipal Electric Agency | 3.20 | 02/01/14 | 890,000 | 893,106 | ||||||||||||||
Illinois, State of | 2.28 | 07/01/11 | 975,000 | 975,000 | ||||||||||||||
Illinois, State of | 2.77 | 01/01/12 | 3,100,000 | 3,115,469 | ||||||||||||||
Illinois, State of | 3.32 | 01/01/13 | 550,000 | 559,939 | ||||||||||||||
Illinois, State of | 4.01 | 07/01/13 | 975,000 | 1,006,990 | ||||||||||||||
Illinois, State of | 4.03 | 03/01/14 | 825,000 | 850,666 | ||||||||||||||
Illinois, State of | 4.51 | 03/01/15 | 1,645,000 | 1,686,158 | ||||||||||||||
Indiana Bond Bank, Indiana | 1.52 | 02/01/12 | 355,000 | 356,282 | ||||||||||||||
Industry California Sales Tax Revenue | 3.00 | 01/01/12 | 500,000 | 504,155 | ||||||||||||||
Industry California Sales Tax Revenue | 3.75 | 01/01/13 | 675,000 | 694,116 | ||||||||||||||
Irvine Ranch Water District California Joint Powers Agency | 2.61 | 03/15/14 | 500,000 | 518,550 | ||||||||||||||
Irvine Ranch Water District California Joint Powers Agency | 7.71 | 03/15/14 | 1,000,000 | 1,038,690 |
34 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(Municipal Bonds continued) | ||||||||||||||||||
Kentucky Asset/Liability Commission | 1.50 | % | 04/01/12 | $ | 375,000 | $ | 376,001 | |||||||||||
Kentucky Asset/Liability Commission | 1.69 | 04/01/12 | 250,000 | 250,687 | ||||||||||||||
Kentucky Asset/Liability Commission | 2.94 | 04/01/14 | 955,000 | 973,107 | ||||||||||||||
Louisa Virginia Industrial Development Authority | 2.50 | (a) | 09/01/30 | 2,635,000 | 2,646,067 | |||||||||||||
Louisiana State Agricultural Finance Authority | 2.14 | 09/15/11 | 1,625,000 | 1,627,454 | ||||||||||||||
Louisiana State Gas & Fuels Tax | 3.00 | (a) | 05/01/43 | 450,000 | 456,502 | |||||||||||||
Luzerne County Pennsylvania | 5.20 | 11/15/13 | 455,000 | 462,084 | ||||||||||||||
Maryland State Transportation Authority | 5.89 | 07/01/12 | 325,000 | 338,325 | ||||||||||||||
Mashantucket Western Pequot Tribe Connecticut(b) | 6.57 | 09/01/13 | 555,000 | 550,865 | ||||||||||||||
Medical University South Carolina Hospital Authority | 4.47 | 08/15/11 | 370,000 | 370,677 | ||||||||||||||
Metropolitan Nashville, Tennessee Airport Authority | 3.17 | 07/01/13 | 125,000 | 127,564 | ||||||||||||||
Michigan Finance Authority | 6.45 | 02/20/12 | 300,000 | 304,005 | ||||||||||||||
Michigan Strategic Fund | 3.05 | (a) | 08/01/24 | 250,000 | 253,485 | |||||||||||||
Mississippi Business Finance Corp. | 2.25 | (a) | 12/01/40 | 125,000 | 125,560 | |||||||||||||
Monroe County Michigan Economic Development Corp. | 2.35 | (a) | 10/01/24 | 1,000,000 | 1,007,660 | |||||||||||||
New Jersey Economic Development Authority | 3.61 | 09/01/14 | 650,000 | 673,368 | ||||||||||||||
New Orleans Louisiana Aviation Board | 4.50 | 01/01/12 | 935,000 | 945,659 | ||||||||||||||
New York State Energy Research & Development Authority | 1.45 | (a) | 06/01/36 | 3,750,000 | 3,758,287 | |||||||||||||
New York State Housing Finance Agency | 2.58 | 03/15/12 | 225,000 | 227,945 | ||||||||||||||
Oakland California Redevelopment Agency | 6.50 | 09/01/13 | 225,000 | 234,072 | ||||||||||||||
Oakland California Redevelopment Agency | 5.34 | 09/01/13 | 1,075,000 | 1,122,300 | ||||||||||||||
Oakland California Redevelopment Agency | 7.25 | 09/01/15 | 400,000 | 427,220 | ||||||||||||||
Orange County California Pension Obligation | 0.00 | (c) | 09/01/12 | 1,650,000 | 1,582,977 | |||||||||||||
Pacifica California Pension Obligation | 2.12 | 06/01/12 | 260,000 | 261,180 | ||||||||||||||
Philadelphia Pennsylvania Authority for Industrial Development | 0.00 | (c) | 04/15/14 | 785,000 | 704,443 | |||||||||||||
Philadelphia Pennsylvania Authority for Industrial Development | 0.00 | (c) | 04/15/15 | 4,075,000 | 3,485,796 | |||||||||||||
Regional Transportation Authority, Illinois | 2.84 | 07/01/12 | 975,000 | 988,348 | ||||||||||||||
Richmond California Joint Powers Financing Authority | 6.30 | 07/01/13 | 800,000 | 820,032 | ||||||||||||||
San Antonio Texas Airport System | 3.20 | 07/01/14 | 550,000 | 556,842 | ||||||||||||||
Township of Lyndhurst, New Jersey | 2.75 | 02/17/12 | 1,250,000 | 1,259,362 | ||||||||||||||
Utah Infrastructure Agency | 3.20 | 10/15/16 | 820,000 | 830,307 | ||||||||||||||
Vermont Housing Finance Agency | 2.00 | (a) | 05/01/37 | 2,775,000 | 2,775,000 | |||||||||||||
Virginia Housing Development Authority, Virginia | 6.73 | 07/01/16 | 100,000 | 100,428 | ||||||||||||||
Wayne County Michigan | 3.19 | (a) | 09/15/12 | 1,575,000 | 1,575,000 | |||||||||||||
Wayne County Michigan | 4.19 | (a) | 09/15/12 | 1,150,000 | 1,150,080 | |||||||||||||
Wayne County Michigan | 4.69 | (a) | 09/15/12 | 1,150,000 | 1,150,046 | |||||||||||||
Wayne County Michigan Building Authority | 6.22 | 12/01/14 | 665,000 | 674,490 | ||||||||||||||
Wayne County Michigan Building Authority | 6.82 | 12/01/15 | 730,000 | 746,418 | ||||||||||||||
Wayne County Michigan Building Authority | 7.33 | 12/01/16 | 740,000 | 759,566 | ||||||||||||||
Total Municipal Bonds (Cost $56,888,402) | 57,803,817 | |||||||||||||||||
U.S. GOVERNMENT AND AGENCY OBLIGATIONS | ||||||||||||||||||
(7.5% of portfolio) | ||||||||||||||||||
Fannie Mae | 1.00 | 11/26/13 | 1,750,000 | 1,751,664 | ||||||||||||||
Fannie Mae | 0.92 | (a) | 04/30/15 | 1,200,000 | 1,207,260 | |||||||||||||
Farmer Mac | 1.00 | 11/01/13 | 1,950,000 | 1,946,693 | ||||||||||||||
Farmer Mac | 1.25 | 12/06/13 | 1,250,000 | 1,263,409 | ||||||||||||||
Federal Farm Credit Bank | 1.70 | 02/24/14 | 2,500,000 | 2,519,983 | ||||||||||||||
Federal Farm Credit Bank | 1.93 | 05/13/15 | 1,250,000 | 1,258,444 | ||||||||||||||
Federal Home Loan Bank | 1.50 | (d) | 11/10/20 | 2,475,000 | 2,481,816 | |||||||||||||
Government Trust Certificate (Sri Lanka Trust) | 0.60 | (a) | 06/15/12 | 50,000 | 50,031 | |||||||||||||
Overseas Private Investment Corp. | 1.45 | (e) | 09/20/13 | 1,275,000 | 1,566,159 | |||||||||||||
Overseas Private Investment Corp. | 4.10 | 11/15/14 | 322,080 | 336,602 | ||||||||||||||
Overseas Private Investment Corp. | 3.56 | (e) | 12/14/14 | 200,000 | 222,204 | |||||||||||||
Overseas Private Investment Corp. | 3.50 | (f) | 05/02/16 | 1,000,000 | 1,103,560 | |||||||||||||
Overseas Private Investment Corp. | 4.81 | (f) | 07/12/16 | 5,000,000 | 6,043,550 | |||||||||||||
Overseas Private Investment Corp. | 3.56 | (e) | 04/23/17 | 1,000,000 | 1,066,330 |
Portfolio of Investments | 35 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Short-Term Bond Fund (continued)
June 30, 2011 (Unaudited)
June 30, 2011 (Unaudited)
Interest Rate | Maturity Date | Face Amount | Value | |||||||||||||||
(U.S. Government and Agency Obligations continued) | ||||||||||||||||||
Overseas Private Investment Corp. | 2.00 | (f)% | 06/10/18 | $ | 1,200,000 | $ | 1,252,428 | |||||||||||
Tennessee Valley Authority | 0.00 | (d) | 04/15/42 | 775,000 | 803,394 | |||||||||||||
The Financing Corp. | 0.00 | (c) | 05/11/13 | 210,000 | 206,903 | |||||||||||||
U.S. Department of Housing & Urban Development | 7.50 | 08/01/11 | 74,000 | 74,439 | ||||||||||||||
U.S. Department of Housing & Urban Development | 6.07 | 08/01/21 | 115,000 | 121,292 | ||||||||||||||
U.S. Department of Housing & Urban Development | 6.12 | 08/01/22 | 675,000 | 711,200 | ||||||||||||||
Total U.S. Government and Agency Obligations (Cost $25,790,498) | 25,987,361 | |||||||||||||||||
MONEY MARKET ACCOUNT | Shares | |||||||||||||||||
(5.0% of portfolio) | ||||||||||||||||||
State Street Institutional Liquid Reserves Fund | 0.15 | (g) | 17,181,596 | 17,181,596 | ||||||||||||||
Total Money Market Account (Cost $17,181,596) | 17,181,596 | |||||||||||||||||
TOTAL INVESTMENTS IN SECURITIES (Cost $345,581,707)—100% | $ | 345,076,051 | ||||||||||||||||
(a) | Variable coupon rate as of June 30, 2011. | |
(b) | 144A security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers. Total of such securities at period-end amounts to $29,827,984 and represents 8.6% total investments. | |
(c) | Zero coupon security, purchased at a discount. | |
(d) | Step coupon security, the current rate may be adjusted upwards before maturity date. | |
(e) | Interest is paid at maturity. | |
(f) | Interest is paid at put date. | |
(g) | 7-day yield at June 30, 2011. |
36 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Stock Index Fund
June 30, 2011 (Unaudited)
Cost | Value | |||||||
Investment in S&P 500 Stock Master Portfolio | $ | 38,062,395 | $ | 64,353,994 | ||||
Substantially all the assets of the Stock Index Fund are invested in the S&P 500 Stock Master Portfolio managed by BlackRock Fund Advisors. As of June 30, 2011, the Stock Index Fund’s ownership interest in the S&P 500 Stock Master Portfolio was 2.82%. See the Appendix for the portfolio of investments for the S&P 500 Stock Master Portfolio.
Portfolio of Investments | 37 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Value Fund
June 30, 2011 (Unaudited)
COMMON STOCKS | Shares | Value | ||||||||
(96.4% of portfolio) | ||||||||||
CONSUMER DISCRETIONARY—6.2% | ||||||||||
Auto Components | ||||||||||
Cooper Tire & Rubber Co. | 440,000 | $ | 8,707,600 | |||||||
Distributors | ||||||||||
Genuine Parts Co. | 315,400 | 17,157,760 | ||||||||
Multiline Retail | ||||||||||
Dillard’s, Inc. (Class A) | 207,700 | 10,829,478 | ||||||||
Total Consumer Discretionary | 36,694,838 | |||||||||
CONSUMER STAPLES—3.7% | ||||||||||
Food Products | ||||||||||
Dean Foods Co.(a) | 859,800 | 10,549,746 | ||||||||
J.M. Smucker Co. (The) | 148,853 | 11,378,323 | ||||||||
Total Consumer Staples | 21,928,069 | |||||||||
ENERGY—17.5% | ||||||||||
Energy Equipment & Services | ||||||||||
Baker Hughes Inc. | 187,000 | 13,568,720 | ||||||||
Oil, Gas, & Consumable Fuels | ||||||||||
Chevron Corp. | 200,000 | 20,568,000 | ||||||||
ConocoPhillips | 259,000 | 19,474,210 | ||||||||
El Paso Corp. | 701,664 | 14,173,613 | ||||||||
Marathon Oil Corp. | 378,000 | 19,913,040 | ||||||||
QEP Resources, Inc. | 271,000 | 11,335,930 | ||||||||
Questar Corp. | 271,000 | 4,799,410 | ||||||||
Total Energy | 103,832,923 | |||||||||
FINANCIALS—7.8% | ||||||||||
Commercial Banks | ||||||||||
Commerce Bancshares, Inc. | 28,548 | 1,227,564 | ||||||||
Wells Fargo & Co. | 158,000 | 4,433,480 | ||||||||
Diversified Financial Services | ||||||||||
Bank of America Corp. | 290,200 | 3,180,592 | ||||||||
JPMorgan Chase & Co. | 442,600 | 18,120,044 | ||||||||
Insurance | ||||||||||
Allstate Corp. (The) | 334,000 | 10,197,020 | ||||||||
Chubb Corp. (The) | 122,000 | 7,638,420 | ||||||||
Principal Financial Group, Inc. | 55,600 | 1,691,352 | ||||||||
Total Financials | 46,488,472 | |||||||||
HEALTH CARE—20.4% | ||||||||||
Health Care Equipment & Supplies | ||||||||||
Covidien PLC | 207,600 | 11,050,548 | ||||||||
Pharmaceuticals | ||||||||||
Abbott Laboratories | 399,000 | 20,995,380 | ||||||||
Bristol-Myers Squibb Co. | 829,700 | 24,028,112 | ||||||||
GlaxoSmithKline plc ADR | 354,000 | 15,186,600 | ||||||||
Hospira, Inc.(a) | 362,400 | 20,533,584 | ||||||||
Merck & Co., Inc. | 193,194 | 6,817,816 | ||||||||
Pfizer Inc. | 1,107,000 | 22,804,200 | ||||||||
Total Health Care | 121,416,240 | |||||||||
INDUSTRIALS—17.3% | ||||||||||
Airlines | ||||||||||
Southwest Airlines Co. | 844,100 | 9,639,622 | ||||||||
Commercial Services & Supplies | ||||||||||
Avery Dennison Corp. | 463,000 | 17,885,690 | ||||||||
Industrial Conglomerates | ||||||||||
General Electric Co. | 686,000 | 12,937,960 | ||||||||
Honeywell International Inc. | 281,100 | 16,750,749 | ||||||||
Tyco International Ltd. | 164,850 | 8,148,536 | ||||||||
Machinery | ||||||||||
Flowserve Corp. | 95,300 | 10,472,517 | ||||||||
Parker-Hannifin Corp. | 246,400 | 22,111,936 | ||||||||
Distributors | ||||||||||
Applied Industrial Technologies, Inc. | 130,500 | 4,647,105 | ||||||||
Total Industrials | 102,594,115 | |||||||||
INFORMATION TECHNOLOGY—16.9% | ||||||||||
Communications Equipment | ||||||||||
Cisco Systems, Inc. | 1,018,500 | 15,898,785 | ||||||||
Motorola Mobility Holdings, Inc.(a) | 74,875 | 1,650,245 | ||||||||
Motorola Solutions, Inc.(a) | 85,571 | 3,939,689 | ||||||||
Computers & Peripherals | ||||||||||
Dell Inc.(a) | 1,282,000 | 21,370,940 | ||||||||
Hewlett-Packard Co. | 379,000 | 13,795,600 | ||||||||
Electronic Equipment, Instruments & Components | ||||||||||
TE Connectivity Ltd. | 262,850 | 9,662,366 | ||||||||
IT Services | ||||||||||
SAIC, Inc.(a) | 553,000 | 9,301,460 | ||||||||
Semiconductors & Semiconductor Equipment | ||||||||||
Intel Corp. | 1,113,000 | 24,664,080 | ||||||||
Total Information Technology | 100,283,165 | |||||||||
MATERIALS—6.6% | ||||||||||
Chemicals | ||||||||||
Dow Chemical Co. (The) | 686,900 | 24,728,400 | ||||||||
Containers & Packaging | ||||||||||
Bemis Co., Inc. | 433,600 | 14,647,008 | ||||||||
Total Materials | 39,375,408 | |||||||||
Total Common Stocks (Cost $404,285,504) | 572,613,230 | |||||||||
MONEY MARKET ACCOUNT | ||||||||||
(3.6% of portfolio) | ||||||||||
State Street Institutional Liquid Reserves Fund, 0.15%(b) | 21,410,045 | 21,410,045 | ||||||||
Total Money Market Account (Cost $21,410,045) | 21,410,045 | |||||||||
TOTAL INVESTMENTS IN SECURITIES (Cost $425,695,549)—100% | $ | 594,023,275 | ||||||||
(a) | Non-income producing. | |
(b) | 7-day yield at June 30, 2011. |
ADR–American Depositary Receipt
38 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Growth Fund
June 30, 2011 (Unaudited)
COMMON STOCKS | Shares | Value | ||||||||
(99.8% of portfolio) | ||||||||||
CONSUMER DISCRETIONARY—17.3% | ||||||||||
Hotels, Restaurants & Leisure | ||||||||||
Carnival Corp. | 13,100 | $ | 492,953 | |||||||
Chipotle Mexican Grill Inc.(a) | 1,050 | 323,600 | ||||||||
Ctrip.com International, Ltd.(a) | 5,000 | 215,400 | ||||||||
Las Vegas Sands Corp.(a) | 8,200 | 346,122 | ||||||||
Marriott International Inc. (Class A) | 17,613 | 625,085 | ||||||||
Starbucks Corp. | 8,600 | 339,614 | ||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 4,300 | 240,972 | ||||||||
Internet & Catalog Retail | ||||||||||
Amazon.com, Inc.(a) | 6,300 | 1,288,287 | ||||||||
Liberty Media Corp.(a) | 22,100 | 370,617 | ||||||||
priceline.com, Inc.(a) | 1,175 | 601,518 | ||||||||
Media | ||||||||||
Walt Disney Co. (The) | 8,600 | 335,744 | ||||||||
Multiline Retail | ||||||||||
Dollar General Corp.(a) | 9,000 | 305,010 | ||||||||
Specialty Retail | ||||||||||
O’Reilly Automotive, Inc.(a) | 3,100 | 203,081 | ||||||||
Total Consumer Discretionary | 5,688,003 | |||||||||
CONSUMER STAPLES—1.9% | ||||||||||
Beverages | ||||||||||
PepsiCo, Inc. | 5,900 | 415,537 | ||||||||
Food & Staples Retailing | ||||||||||
Whole Foods Market, Inc. | 3,400 | 215,730 | ||||||||
Total Consumer Staples | 631,267 | |||||||||
ENERGY—9.6% | ||||||||||
Energy Equipment & Services | ||||||||||
FMC Technologies, Inc.(a) | 6,400 | 286,656 | ||||||||
Schlumberger Ltd. | 9,300 | 803,520 | ||||||||
Oil, Gas,& Consumable Fuels | ||||||||||
Cimarex Energy Co. | 3,500 | 314,720 | ||||||||
EOG Resources Inc. | 7,100 | 742,305 | ||||||||
Peabody Energy Corp. | 7,700 | 453,607 | ||||||||
Range Resources Corp. | 9,900 | 549,450 | ||||||||
Total Energy | 3,150,258 | |||||||||
FINANCIALS—5.1% | ||||||||||
Capital Markets | ||||||||||
Franklin Resources Inc. | 6,050 | 794,305 | ||||||||
Diversified Financial Services | ||||||||||
IntercontinentalExchange, Inc.(a) | 2,000 | 249,420 | ||||||||
JPMorgan Chase & Co. | 10,800 | 442,152 | ||||||||
Real Estate Management & Development | ||||||||||
CB Richard Ellis Group, Inc.(a) | 8,500 | 213,435 | ||||||||
Total Financials | 1,699,312 | |||||||||
HEALTH CARE—11.9% | ||||||||||
Biotechnology | ||||||||||
Biogen Idec Inc.(a) | 1,300 | 138,996 | ||||||||
Celgene Corp.(a) | 7,950 | 479,544 | ||||||||
Dendreon Corp.(a) | 3,300 | 130,152 | ||||||||
Human Genome Sciences, Inc.(a) | 11,900 | 292,026 | ||||||||
Health Care Equipment & Supplies | ||||||||||
Baxter International Inc. | 4,100 | 244,729 | ||||||||
Edwards Lifesciences Corp.(a) | 3,400 | 296,412 | ||||||||
Stryker Corp. | 6,600 | 387,354 | ||||||||
Health Care Providers & Services | ||||||||||
Express Scripts Inc.(a) | 8,500 | 458,830 | ||||||||
McKesson Corp. | 9,900 | 828,135 | ||||||||
Unitedhealth Group Inc. | 8,400 | 433,272 | ||||||||
Pharmaceuticals | ||||||||||
Valeant Pharmaceuticals International, Inc. | 4,200 | 218,232 | ||||||||
Total Health Care | 3,907,682 | |||||||||
INDUSTRIALS—16.1% | ||||||||||
Aerospace & Defense | ||||||||||
Boeing Co. (The) | 7,200 | 532,296 | ||||||||
Precision Castparts Corp. | 3,600 | 592,740 | ||||||||
United Technologies Corp. | 4,400 | 389,444 | ||||||||
Air Freight & Logistics | ||||||||||
Expeditors International of Washington Inc. | 4,900 | 250,831 | ||||||||
United Parcel Service, Inc. (Class B) | 8,700 | 634,491 | ||||||||
Electrical Equipment | ||||||||||
Emerson Electric Co. | 7,200 | 405,000 | ||||||||
Industrial Conglomerates | ||||||||||
3M Co. | 6,600 | 626,010 | ||||||||
Machinery | ||||||||||
Danaher Corp. | 21,000 | 1,112,790 | ||||||||
Road & Rail | ||||||||||
Union Pacific Corp. | 4,400 | 459,360 | ||||||||
Trading Companies & Distributors | ||||||||||
Fastenal Co. | 8,500 | 305,915 | ||||||||
Total Industrials & Business Services | 5,308,877 | |||||||||
INFORMATION TECHNOLOGY—32.4% | ||||||||||
Communications Equipment | ||||||||||
Juniper Networks, Inc.(a) | 22,700 | 715,050 | ||||||||
QUALCOMM, Inc. | 19,100 | 1,084,689 | ||||||||
Computers & Peripherals | ||||||||||
Apple Inc.(a) | 6,535 | 2,193,603 | ||||||||
EMC Corp.(a) | 18,800 | 517,940 | ||||||||
NetApp, Inc.(a) | 7,000 | 369,460 | ||||||||
SanDisk Corp.(a) | 8,800 | 365,200 | ||||||||
Electronic Equipment & Instruments | ||||||||||
Corning Inc. | 26,300 | 477,345 | ||||||||
Internet Software & Services | ||||||||||
Baidu, Inc. ADR(a) | 4,200 | 588,546 | ||||||||
eBay Inc.(a) | 7,600 | 245,252 | ||||||||
Google Inc. (Class A)(a) | 2,500 | 1,265,950 | ||||||||
IT Services | ||||||||||
Accenture Ltd. (Class A) | 7,500 | 453,150 | ||||||||
MasterCard Inc. | 2,245 | 676,508 | ||||||||
Semiconductors & Semiconductor Equipment | ||||||||||
Broadcom Corp. (Class A) | 18,000 | 605,520 | ||||||||
Software | ||||||||||
Nuance Communications, Inc.(a) | 17,000 | 364,990 | ||||||||
Red Hat, Inc.(a) | 6,000 | 275,400 | ||||||||
Rovi Corp.(a) | 5,300 | 304,008 | ||||||||
salesforce.com, Inc.(a) | 1,100 | 163,878 | ||||||||
Total Information Technology | 10,666,489 | |||||||||
Portfolio of Investments | 39 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Growth Fund (continued)
June 30, 2011 (Unaudited)
Shares | Value | |||||||||
MATERIALS—3.3% | ||||||||||
Chemicals | ||||||||||
Monsanto Co. | 2,300 | $ | 166,842 | |||||||
Praxair Inc. | 8,380 | 908,308 | ||||||||
Total Materials | 1,075,150 | |||||||||
TELECOMMUNICATION SERVICES—2.2% | ||||||||||
Wireless Telecommunication Services | ||||||||||
Crown Castle International Corp.(a) | 18,000 | 734,220 | ||||||||
Total Telecommunication Services | 734,220 | |||||||||
Total Common Stocks (Cost $28,477,188) | 32,861,258 | |||||||||
MONEY MARKET ACCOUNT | ||||||||||
(0.2% of portfolio) | ||||||||||
State Street Institutional Liquid Reserves Fund, 0.15%(b) | 73,647 | 73,647 | ||||||||
Total Money Market Account (Cost $73,647) | 73,647 | |||||||||
TOTAL INVESTMENTS IN SECURITIES (Cost $28,550,835)—100% | $ | 32,934,905 | ||||||||
(a) | Non-income producing. | |
(b) | 7-day yield at June 30, 2011. |
ADR–American Depositary Receipt
40 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: Small-Company Stock Fund
June 30, 2011 (Unaudited)
COMMON STOCKS | Shares | Value | ||||||||
(85.3% of portfolio) | ||||||||||
CONSUMER DISCRETIONARY—12.5% | ||||||||||
Auto Components | ||||||||||
Cooper Tire & Rubber Co. | 244,000 | $ | 4,828,760 | |||||||
Multiline Retail | ||||||||||
Nordstrom, Inc. | 90,000 | 4,224,600 | ||||||||
Restaurants | ||||||||||
Brinker International, Inc. | 185,000 | 4,525,100 | ||||||||
Cracker Barrel Old Country Store, Inc. | 114,500 | 5,645,995 | ||||||||
O’Charley’s Inc.(a) | 20,660 | 151,025 | ||||||||
Specialty Retail | ||||||||||
Sally Beauty Holdings, Inc.(a) | 114,000 | 1,949,400 | ||||||||
Total Consumer Discretionary | 21,324,880 | |||||||||
CONSUMER STAPLES—13.1% | ||||||||||
Food Distribution | ||||||||||
Core-Mark Holding Company, Inc.(a) | 57,500 | 2,052,750 | ||||||||
United Natural Foods, Inc.(a) | 124,600 | 5,316,682 | ||||||||
Food Products | ||||||||||
Dean Foods Co.(a) | 500,000 | 6,135,000 | ||||||||
J.M. Smucker Co. (The) | 40,868 | 3,123,950 | ||||||||
Food & Staples Retailing | ||||||||||
Fred’s, Inc. | 192,900 | 2,783,547 | ||||||||
Ruddick Corp. | 66,000 | 2,873,640 | ||||||||
Total Consumer Staples | 22,285,569 | |||||||||
ENERGY—7.5% | ||||||||||
Energy Equipment & Services | ||||||||||
Helmerich & Payne, Inc. | 35,000 | 2,314,200 | ||||||||
Oil, Gas, & Consumable Fuels | ||||||||||
Cimarex Energy Co. | 59,400 | 5,341,248 | ||||||||
QEP Resources, Inc. | 26,600 | 1,112,678 | ||||||||
Questar Corp. | 26,600 | 471,086 | ||||||||
SM Energy Co. | 49,000 | 3,600,520 | ||||||||
Total Energy | 12,839,732 | |||||||||
FINANCIALS—5.0% | ||||||||||
Commercial Banks | ||||||||||
Cardinal Financial Corp. | 239,900 | 2,626,905 | ||||||||
Middleburg Financial Corp. | 83,300 | 1,244,502 | ||||||||
National Bankshares, Inc. (Virginia) | 86,000 | 2,153,440 | ||||||||
Southcoast Financial Corp.(a) | 56,507 | 182,518 | ||||||||
Valley National Bancorp | 116,791 | 1,589,525 | ||||||||
Diversified Financial Services | ||||||||||
Asset Acceptance Capital Corp.(a) | 168,800 | 681,952 | ||||||||
Total Financials | 8,478,842 | |||||||||
HEALTH CARE—3.2% | ||||||||||
Health Care Equipment & Supplies | ||||||||||
STERIS Corp. | 156,100 | 5,460,378 | ||||||||
Total Health Care | 5,460,378 | |||||||||
INDUSTRIALS—28.2% | ||||||||||
Aerospace & Defense | ||||||||||
Huntington Ingalls Industries, Inc.(a) | 51,653 | 1,782,028 | ||||||||
Triumph Group, Inc. | 68,400 | 6,811,272 | ||||||||
Distributors | ||||||||||
Applied Industrial Technologies, Inc. | 191,400 | 6,815,754 | ||||||||
Electrical Equipment | ||||||||||
Rofin-Sinar Technologies Inc.(a) | 158,500 | 5,412,775 | ||||||||
Industrial Conglomerates | ||||||||||
Carlisle Companies Inc. | 98,900 | 4,868,847 | ||||||||
CLARCOR Inc. | 87,100 | 4,118,088 | ||||||||
Standex International Corp. | 19,500 | 598,065 | ||||||||
Thomas & Betts Corp.(a) | 25,000 | 1,346,250 | ||||||||
Machinery | ||||||||||
Flowserve Corp. | 14,500 | 1,593,405 | ||||||||
Gorman-Rupp Co. (The) | 111,725 | 3,680,221 | ||||||||
Manitowoc Co., Inc. (The) | 310,600 | 5,230,504 | ||||||||
Regal Beloit Corp. | 43,500 | 2,904,495 | ||||||||
Road & Rail | ||||||||||
Knight Transportation, Inc. | 113,100 | 1,921,569 | ||||||||
Werner Enterprises, Inc. | 32,800 | 821,640 | ||||||||
Total Industrials | 47,904,913 | |||||||||
INFORMATION TECHNOLOGY—6.9% | ||||||||||
Communications Equipment | ||||||||||
Belden Inc. | 156,500 | 5,455,590 | ||||||||
Computers & Peripherals | ||||||||||
Western Digital Corp.(a) | 70,000 | 2,546,600 | ||||||||
IT Services | ||||||||||
Computer Services, Inc. | 29,700 | 888,030 | ||||||||
Software | ||||||||||
ManTech International Corp. | 65,200 | 2,896,184 | ||||||||
Total Information Technology | 11,786,404 | |||||||||
MATERIALS—8.9% | ||||||||||
Chemicals | ||||||||||
Olin Corp. | 255,100 | 5,780,566 | ||||||||
PolyOne Corp. | 126,000 | 1,949,220 | ||||||||
Polypore International, Inc.(a) | 19,800 | 1,343,232 | ||||||||
Westlake Chemical Corp. | 115,700 | 6,004,830 | ||||||||
Total Materials | 15,077,848 | |||||||||
Total Common Stocks (Cost $96,775,725) | 145,158,566 | |||||||||
EXCHANGE TRADED FUND | ||||||||||
(4.1% of portfolio) | ||||||||||
iShares Russell 2000 Value Index | 95,000 | 6,973,950 | ||||||||
Total Exchange Traded Fund (Cost $6,753,804) | 6,973,950 | |||||||||
COMMERCIAL PAPER | ||||||||||
(1.2% of portfolio) | ||||||||||
John Deere Bank SA, 0.07%, due 07/08/11 | 2,000,000 | 1,999,973 | ||||||||
Commercial Paper (Cost $1,999,973) | 1,999,973 | |||||||||
MONEY MARKET ACCOUNT | ||||||||||
(9.4% of portfolio) | ||||||||||
State Street Institutional Liquid Reserves Fund, 0.15%(b) | 16,052,688 | 16,052,688 | ||||||||
Total Money Market Account (Cost $16,052,688) | 16,052,688 | |||||||||
TOTAL INVESTMENTS IN SECURITIES (Cost $121,582,190)—100% | $ | 170,185,177 | ||||||||
(a) | Non-income producing. | |
(b) | 7-day yield at June 30, 2011. |
Portfolio of Investments | 41 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: International Value Fund
June 30, 2011 (Unaudited)
COMMON STOCKS | Shares | Value | ||||||||
(98.6% of portfolio) | ||||||||||
AUSTRALIA—1.8% | ||||||||||
BHP Billiton Ltd. | 57,800 | $ | 2,731,818 | |||||||
Total Australia | 2,731,818 | |||||||||
BRAZIL—0.7% | ||||||||||
Petroleo Brasileiro SA—ADR | 33,450 | 1,132,617 | ||||||||
Total Brazil | 1,132,617 | |||||||||
BRITAIN—11.4% | ||||||||||
BAE Systems PLC | 541,850 | 2,769,967 | ||||||||
HSBC Holdings PLC—ADR | 58,200 | 2,887,884 | ||||||||
Pearson PLC | 82,800 | 1,568,441 | ||||||||
Tesco PLC | 496,400 | 3,205,991 | ||||||||
Vodafone Group PLC | 1,236,324 | 3,285,694 | ||||||||
WPP Group PLC | 297,200 | 3,720,778 | ||||||||
Total Britain | 17,438,755 | |||||||||
CHINA—1.9% | ||||||||||
Bank of China Ltd. | 4,509,800 | 2,212,339 | ||||||||
Huaneng Power International, Inc. | 1,347,400 | 711,946 | ||||||||
Total China | 2,924,285 | |||||||||
FINLAND—0.5% | ||||||||||
Neste Oil Corp. | 46,550 | 729,755 | ||||||||
Total Finland | 729,755 | |||||||||
FRANCE—10.4% | ||||||||||
AXA SA | 171,300 | 3,889,196 | ||||||||
Cap Gemini SA | 53,350 | 3,125,766 | ||||||||
Compagnie de Saint-Gobain SA | 35,528 | 2,300,848 | ||||||||
Total SA | 63,150 | 3,652,348 | ||||||||
Vivendi SA | 104,500 | 2,905,995 | ||||||||
Total France | 15,874,153 | |||||||||
GERMANY—4.0% | ||||||||||
Daimler AG REG | 39,950 | 3,006,672 | ||||||||
Deutsche Böerse AG | 39,950 | 3,031,941 | ||||||||
Total Germany | 6,038,613 | |||||||||
HONG KONG—3.4% | ||||||||||
Hutchison Whampoa Ltd. | 272,800 | 2,957,693 | ||||||||
New World Development Co. Ltd. | 1,474,700 | 2,240,098 | ||||||||
Total Hong Kong | 5,197,791 | |||||||||
ITALY—4.6% | ||||||||||
Enel SpA | 237,450 | 1,550,974 | ||||||||
Eni SpA | 126,250 | 2,992,943 | ||||||||
Telecom Italia SpA | 2,159,600 | 2,513,337 | ||||||||
Total Italy | 7,057,254 | |||||||||
INDONESIA—1.0% | ||||||||||
PT Telekomunikasi Indonesia, Tbk | 1,368,700 | 1,175,481 | ||||||||
Telekomunik Indonesia—SP—ADR | 10,450 | 360,525 | ||||||||
Total Indonesia | 1,536,006 | |||||||||
ISRAEL—1.9% | ||||||||||
Teva Pharmaceutical Industries Ltd.—ADR | 61,000 | 2,941,420 | ||||||||
Total Israel | 2,941,420 | |||||||||
JAPAN—21.5% | ||||||||||
Bridgestone Corp. | 156,000 | 3,590,276 | ||||||||
Daiichi Sankyo Co., Ltd. | 141,400 | 2,765,763 | ||||||||
Daito Trust Construction Co., Ltd. | 35,050 | 2,976,719 | ||||||||
Daiwa Securities Co., Ltd. | 604,450 | 2,662,902 | ||||||||
East Japan Railway Co. | 46,500 | 2,672,080 | ||||||||
Mori Seiki Co., Ltd. | 113,300 | 1,500,610 | ||||||||
MS & AD Insurance Group Holdings, Inc. | 99,255 | 2,328,112 | ||||||||
Nikon Corp. | 129,450 | 3,054,292 | ||||||||
Nissan Motor Co., Ltd. | 348,750 | 3,660,922 | ||||||||
Secom Co., Ltd. | 23,650 | 1,135,777 | ||||||||
Sumitomo Corp. | 230,800 | 3,145,819 | ||||||||
Sumitomo Trust & Banking Co. | 946,450 | 3,301,809 | ||||||||
Total Japan | 32,795,081 | |||||||||
NETHERLANDS—4.3% | ||||||||||
AEGON NV | 458,600 | 3,125,447 | ||||||||
Koninklijke DSM NV | 52,600 | 3,413,871 | ||||||||
Total Netherlands | 6,539,318 | |||||||||
NORWAY—2.4% | ||||||||||
Statoil ASA | 143,145 | 3,624,525 | ||||||||
Total Norway | 3,624,525 | |||||||||
PORTUGAL—1.7% | ||||||||||
Banco Comercial Português SA | 2,007,628 | 1,417,463 | ||||||||
Banco Espirito Santo SA | 380,501 | 1,193,213 | ||||||||
Total Portugal | 2,610,676 | |||||||||
REPUBLIC OF SOUTH KOREA—3.9% | ||||||||||
Posco | 6,700 | 2,910,200 | ||||||||
SK Telecom Co., Ltd. | 6,507 | 982,816 | ||||||||
SK Telecom Co., Ltd.—ADR | 111,653 | 2,087,911 | ||||||||
Total Republic of South Korea | 5,980,927 | |||||||||
SINGAPORE—1.6% | ||||||||||
Keppel Corp. | 276,210 | 2,499,223 | ||||||||
Total Singapore | 2,499,223 | |||||||||
SPAIN—4.2% | ||||||||||
Banco Bilbao Vizcaya Argentaria SA | 262,122 | 3,072,252 | ||||||||
Banco Popular Espanol SA | 254,205 | 1,430,766 | ||||||||
Banco Popular Espanol SA Rights | 254,205 | 18,432 | ||||||||
Indra Sistemas SA | 91,400 | 1,890,308 | ||||||||
Total Spain | 6,411,758 | |||||||||
SWITZERLAND—14.9% | ||||||||||
Adecco SA REG | 44,000 | 2,820,998 | ||||||||
Credit Suisse Group AG | 70,000 | 2,720,780 | ||||||||
Givaudan SA REG | 2,182 | 2,308,537 | ||||||||
Holcim Ltd. | 39,586 | 2,987,534 | ||||||||
Nestlé SA REG | 41,350 | 2,569,872 | ||||||||
Novartis AG REG | 54,600 | 3,344,658 | ||||||||
Roche Holding Ltd. | 19,700 | 3,295,791 | ||||||||
Zurich Financial Services Ltd. | 10,900 | 2,754,938 | ||||||||
Total Switzerland | 22,803,108 | |||||||||
THAILAND—2.5% | ||||||||||
Bangkok Bank Public Company Ltd. | 148,350 | 765,867 | ||||||||
PTT Public Company Ltd. | 284,500 | 3,092,693 | ||||||||
Total Thailand | 3,858,560 | |||||||||
Total Common Stocks (Cost $141,396,266) | 150,725,643 | |||||||||
42 | Portfolio of Investments |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: International Value Fund (continued)
June 30, 2011 (Unaudited)
MONEY MARKET ACCOUNT | Shares | Value | ||||||||
(1.4% of portfolio) | ||||||||||
State Street Institutional Liquid Reserves Fund, 0.15%(a) | 2,192,940 | $ | 2,192,940 | |||||||
Total Money Market Account (Cost $2,192,940) | 2,192,940 | |||||||||
TOTAL INVESTMENTS IN SECURITIES (Cost $143,589,206)—100% | $ | 152,918,583 | ||||||||
(a) | 7-day yield at June 30, 2011. |
SA–Sociedad Anónima or Société Anonyme
ADR–American Depositary Receipt
PLC–Public Limited Company
AG–Aktiengesellschaft
REG–Registered shares
SpA–Società per Azioni
NV–Naamloze Vennottschap
ASA–Allmennaksjeselskap
Portfolio of Investments | 43 |
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 2011 (Unaudited)
Short-Term | ||||||||||||||
Daily | Government | Short-Term | ||||||||||||
ASSETS | Income Fund | Securities Fund | Bond Fund | |||||||||||
Investments in securities, at value (cost: $188,683,170; $83,092,567; $345,581,707; $38,062,395; $425,695,549; $28,550,835; $121,582,190; $143,589,206) | $ | 188,683,170 | $ | 84,368,940 | $ | 345,076,051 | ||||||||
Cash | — | — | — | |||||||||||
Receivables | ||||||||||||||
Investment securities sold | — | — | — | |||||||||||
Dividends and interest | 50,403 | 412,440 | 1,932,572 | |||||||||||
Capital shares sold | 280,347 | 11,316 | 160,214 | |||||||||||
Due from RE Advisers | 6,060 | — | — | |||||||||||
Prepaid expenses | 23,482 | 13,648 | 28,815 | |||||||||||
Total assets | 189,043,462 | 84,806,344 | 347,197,652 | |||||||||||
LIABILITIES | ||||||||||||||
Payables | ||||||||||||||
Investment securities purchased | — | — | 3,478,965 | |||||||||||
Accrued expenses | 68,132 | 42,436 | 117,883 | |||||||||||
Due to Board Members | 21,698 | 7,823 | 31,777 | |||||||||||
Due to RE Advisers | — | 32,224 | 175,236 | |||||||||||
Capital shares redeemed | 464,738 | 133,558 | 282,504 | |||||||||||
Dividends | 21 | 3,201 | 27,210 | |||||||||||
Total liabilities | 554,589 | 219,242 | 4,113,575 | |||||||||||
NET ASSETS | $ | 188,488,873 | $ | 84,587,102 | $ | 343,084,077 | ||||||||
NET ASSETS CONSIST OF: | ||||||||||||||
Unrealized appreciation of Investments | $ | — | $ | 1,276,373 | $ | (505,656 | ) | |||||||
Undistributed net income (loss) | (21,389 | ) | (7,905 | ) | (34,614 | ) | ||||||||
Undistributed net realized gain (loss) from investments and futures transactions | (21 | ) | 2,935 | (766,236 | ) | |||||||||
Paid-in-capital applicable to outstanding shares of 188,510,221 of Daily Income Fund, 16,086,751 Short-Term Government Securities Fund, 66,270,335 of Short-Term Bond Fund, 6,525,606 of Stock Index Fund, 18,031,050 of Value Fund, 5,514,186 of Growth Fund, 6,895,776 of Small-Company Stock Fund, and 19,922,950 of International Value Fund | 188,510,283 | 83,315,699 | 344,390,583 | |||||||||||
NET ASSETS | $ | 188,488,873 | $ | 84,587,102 | $ | 343,084,077 | ||||||||
NET ASSET VALUE PER SHARE | $ | 1.00 | $ | 5.26 | $ | 5.18 | ||||||||
44 | Statements of Assets and Liabilities |
The accompanying notes are an integral part of these financial statements.
Small-Company | International | |||||||||||||||||||||
Stock Index Fund | Value Fund | Growth Fund | Stock Fund | Value Fund | ||||||||||||||||||
$ | 64,353,994 | $ | 594,023,275 | $ | 32,934,906 | $ | 170,185,177 | $ | 152,918,583 | |||||||||||||
— | — | — | — | 350,492 | ||||||||||||||||||
— | — | 432,222 | — | 679,004 | ||||||||||||||||||
— | 1,161,554 | 11,004 | 55,693 | 595,058 | ||||||||||||||||||
2,960 | 249,400 | 1,385 | 704,926 | 2,612,156 | ||||||||||||||||||
— | — | — | — | — | ||||||||||||||||||
12,190 | 42,177 | 8,293 | 18,234 | 15,750 | ||||||||||||||||||
64,369,144 | 595,476,406 | 33,387,810 | 170,964,030 | 157,171,043 | ||||||||||||||||||
— | 151,000 | 300,208 | 204,110 | 529,514 | ||||||||||||||||||
41,300 | 184,843 | 32,248 | 90,608 | 60,795 | ||||||||||||||||||
6,446 | 61,864 | 2,541 | 10,594 | 14,815 | ||||||||||||||||||
14,147 | 258,894 | 11,281 | 115,453 | 94,253 | ||||||||||||||||||
12,188 | 263,212 | 45,023 | 208,320 | 123,559 | ||||||||||||||||||
— | 285,031 | 1,429 | — | 17,798 | ||||||||||||||||||
74,081 | 1,204,844 | 392,730 | 629,085 | 840,734 | ||||||||||||||||||
$ | 64,295,063 | $ | 594,271,562 | $ | 32,995,080 | $ | 170,334,945 | $ | 156,330,309 | |||||||||||||
$ | 26,291,599 | $ | 168,327,726 | $ | 4,384,071 | $ | 48,602,987 | $ | 9,331,065 | |||||||||||||
443,667 | (61,315 | ) | (32,334 | ) | (103,393 | ) | 2,682,387 | |||||||||||||||
(8,977,975 | ) | (20,320,975 | ) | 2,267,489 | (103,511 | ) | (26,627,183 | ) | ||||||||||||||
46,537,772 | 446,326,126 | 26,375,854 | 121,938,862 | 170,944,040 | ||||||||||||||||||
$ | 64,295,063 | $ | 594,271,562 | $ | 32,995,080 | $ | 170,334,945 | $ | 156,330,309 | |||||||||||||
$ | 9.85 | $ | 32.96 | $ | 5.98 | $ | 24.70 | $ | 7.85 | |||||||||||||
Statements of Assets and Liabilities | 45 |
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF OPERATIONS
For the Period Ended June 30, 2011 (Unaudited)
Short-Term | ||||||||||||||
Daily | Government | Short-Term | ||||||||||||
INVESTMENT INCOME | Income Fund | Securities Fund | Bond Fund | |||||||||||
Interest | $ | 170,457 | $ | 1,010,536 | $ | 6,990,774 | ||||||||
Dividends | — | — | — | |||||||||||
Allocated from Master | ||||||||||||||
Income | — | — | — | |||||||||||
Expense | — | — | — | |||||||||||
Total investment income | 170,457 | 1,010,536 | 6,990,774 | |||||||||||
EXPENSES | ||||||||||||||
Management fees | 465,705 | 177,702 | 970,278 | |||||||||||
Shareholder servicing fees | 65,581 | 36,711 | 83,906 | |||||||||||
Custodian and accounting fees | 22,579 | 30,410 | 88,430 | |||||||||||
Directors and Board meeting expenses | 28,163 | 11,556 | 49,392 | |||||||||||
Registration fees | 20,351 | 16,024 | 22,221 | |||||||||||
Legal and audit fees | 15,807 | 6,977 | 27,276 | |||||||||||
Printing | 12,858 | 5,530 | 17,058 | |||||||||||
Insurance | 7,311 | 2,869 | 12,168 | |||||||||||
Communication | 4,107 | 1,998 | 5,693 | |||||||||||
Other expenses | 4,568 | 1,877 | 7,537 | |||||||||||
Administration fees | — | — | — | |||||||||||
Total expenses | 647,030 | 291,654 | 1,283,959 | |||||||||||
Less fees waived and expenses reimbursed by RE Advisers | (479,289 | ) | — | — | ||||||||||
Net expenses | 167,741 | 291,654 | 1,283,959 | |||||||||||
NET INVESTMENT INCOME (LOSS) | 2,716 | 718,882 | 5,706,815 | |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||||||
Net realized gain on investments | — | 2,935 | 17,588 | |||||||||||
Net change in unrealized appreciation (depreciation) | — | (72,751 | ) | (849,501 | ) | |||||||||
NET GAIN (LOSS) ON INVESTMENTS | — | (69,816 | ) | (831,913 | ) | |||||||||
NET INCREASE IN NET ASSETS FROM OPERATIONS | $ | 2,716 | $ | 649,066 | $ | 4,874,902 | ||||||||
(a) | Represents realized and unrealized gain on investments allocated from the master portfolio. |
46 | Statements of Operations |
The accompanying notes are an integral part of these financial statements.
Small-Company | International | |||||||||||||||||||||
Stock Index Fund | Value Fund | Growth Fund | Stock Fund | Value Fund | ||||||||||||||||||
$ | — | $ | 7,950 | $ | 320 | $ | 14,090 | $ | 3,502 | |||||||||||||
— | 6,292,216 | 122,310 | 686,544 | 3,403,604 | ||||||||||||||||||
635,587 | — | — | — | — | ||||||||||||||||||
(15,879 | ) | — | — | — | — | |||||||||||||||||
619,708 | 6,300,166 | 122,630 | 700,634 | 3,407,106 | ||||||||||||||||||
— | 1,491,891 | 105,155 | 609,056 | 541,707 | ||||||||||||||||||
48,484 | 193,588 | 36,863 | 84,489 | 52,668 | ||||||||||||||||||
6,077 | 55,348 | 16,600 | 21,241 | 61,383 | ||||||||||||||||||
6,764 | 78,816 | 4,901 | 24,130 | 21,563 | ||||||||||||||||||
9,147 | 21,508 | 12,893 | 13,897 | 17,105 | ||||||||||||||||||
6,988 | 43,111 | 3,460 | 13,940 | 14,050 | ||||||||||||||||||
11,248 | 45,730 | 5,955 | 17,434 | 10,331 | ||||||||||||||||||
2,172 | 19,315 | 1,120 | 4,869 | 5,153 | ||||||||||||||||||
3,009 | 14,199 | 2,061 | 5,729 | 3,494 | ||||||||||||||||||
1,759 | 13,246 | 986 | 3,730 | 3,403 | ||||||||||||||||||
79,336 | — | — | — | — | ||||||||||||||||||
174,984 | 1,976,752 | 189,994 | 798,515 | 730,857 | ||||||||||||||||||
— | — | (36,393 | ) | — | (16,790 | ) | ||||||||||||||||
174,984 | 1,976,752 | 153,601 | 798,515 | 714,067 | ||||||||||||||||||
444,724 | 4,323,414 | (30,971 | ) | (97,881 | ) | 2,693,039 | ||||||||||||||||
525 | (a) | 11,488,620 | 2,287,306 | 1,197,226 | 1,600,096 | |||||||||||||||||
3,011,465 | (a) | 28,419,125 | (844,022 | ) | 9,070,683 | 1,886,667 | ||||||||||||||||
3,011,990 | 39,907,745 | 1,443,284 | 10,267,909 | 3,486,763 | ||||||||||||||||||
$ | 3,456,714 | $ | 44,231,159 | $ | 1,412,313 | $ | 10,170,028 | $ | 6,179,802 | |||||||||||||
Statements of Operations | 47 |
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF CHANGES IN NET ASSETS
Daily Income Fund | ||||||||||
Six Months Ended | ||||||||||
June 30, | Year Ended | |||||||||
2011 | December 31, | |||||||||
INCREASE (DECREASE) IN NET ASSETS | (Unaudited) | 2010 | ||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 2,716 | $ | 13,065 | ||||||
Net realized gain (loss) on investments | — | — | ||||||||
Net change in unrealized appreciation (depreciation) | — | — | ||||||||
Increase in net assets from operations | 2,716 | 13,065 | ||||||||
Distributions to shareholders | ||||||||||
Net investment income | (9,158 | ) | (18,562 | ) | ||||||
Net realized gain on investments | — | — | ||||||||
Total distributions to shareholders | (9,158 | ) | (18,562 | ) | ||||||
Capital share transactions | ||||||||||
Net capital share transactions (See Note 6) | 1,406,228 | (4,397,540 | ) | |||||||
Redemption fees received (See Note 5) | — | — | ||||||||
Total increase (decrease) in net assets from capital transactions | 1,406,228 | (4,397,540 | ) | |||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | 1,399,786 | (4,403,037 | ) | |||||||
NET ASSETS | ||||||||||
Beginning of period | 187,089,087 | 191,492,124 | ||||||||
End of period | $ | 188,488,873 | $ | 187,089,087 | ||||||
Value Fund | ||||||||||
Six Months Ended | ||||||||||
June 30, | Year Ended | |||||||||
2011 | December 31, | |||||||||
INCREASE (DECREASE) IN NET ASSETS | (Unaudited) | 2010 | ||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 4,323,414 | $ | 6,682,745 | ||||||
Net realized gain (loss) on investments | 11,488,620 | 7,749,721 | ||||||||
Net change in unrealized appreciation (depreciation) | 28,419,125 | 49,389,728 | ||||||||
Increase in net assets from operations | 44,231,159 | 63,822,194 | ||||||||
Distributions to shareholders | ||||||||||
Net investment income | (4,343,683 | ) | (6,699,245 | ) | ||||||
Net realized gain on investments | — | — | ||||||||
Total distributions to shareholders | (4,343,683 | ) | (6,699,245 | ) | ||||||
Capital share transactions | ||||||||||
Net capital share transactions (See Note 6) | 6,759,281 | (6,595,058 | ) | |||||||
Redemption fees received (See Note 5) | 8,350 | 12,131 | ||||||||
Total increase (decrease) in net assets from capital transactions | 6,767,631 | (6,582,927 | ) | |||||||
TOTAL INCREASE (DECREASE) IN NET ASSETS | 46,655,107 | 50,540,022 | ||||||||
NET ASSETS | ||||||||||
Beginning of period | 547,616,455 | 497,076,433 | ||||||||
End of period | $ | 594,271,562 | $ | 547,616,455 | ||||||
48 | Statements of Changes in Net Assets |
The accompanying notes are an integral part of these financial statements.
Short-Term Government | ||||||||||||||||||||||||||
Securities Fund | Short-Term Bond Fund | Stock Index Fund | ||||||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | Year Ended | June 30, | Year Ended | June 30, | Year Ended | |||||||||||||||||||||
2011 | December 31, | 2011 | December 31, | 2011 | December 31, | |||||||||||||||||||||
(Unaudited) | 2010 | (Unaudited) | 2010 | (Unaudited) | 2010 | |||||||||||||||||||||
$ | 718,882 | $ | 1,606,838 | $ | 5,706,815 | $ | 12,454,726 | $ | 444,724 | $ | 783,568 | |||||||||||||||
2,935 | 43,819 | 17,588 | (774,219 | ) | 525 | (3,385,785 | ) | |||||||||||||||||||
(72,751 | ) | 131,567 | (849,501 | ) | 3,605,505 | 3,011,465 | 10,239,100 | |||||||||||||||||||
649,066 | 1,782,224 | 4,874,902 | 15,286,012 | 3,456,714 | 7,636,883 | |||||||||||||||||||||
(721,805 | ) | (1,609,262 | ) | (5,721,342 | ) | (12,473,033 | ) | — | (784,596 | ) | ||||||||||||||||
— | (44,758 | ) | — | — | — | — | ||||||||||||||||||||
(721,805 | ) | (1,654,020 | ) | (5,721,342 | ) | (12,473,033 | ) | — | (784,596 | ) | ||||||||||||||||
8,522,977 | 10,326,963 | 34,924,580 | 59,773,147 | 200,233 | 1,906,063 | |||||||||||||||||||||
— | — | — | — | 14,225 | 18,770 | |||||||||||||||||||||
8,522,977 | 10,326,963 | 34,924,580 | 59,773,147 | 214,458 | 1,924,833 | |||||||||||||||||||||
8,450,238 | 10,455,167 | 34,078,140 | 62,586,126 | 3,671,172 | 8,777,120 | |||||||||||||||||||||
76,136,864 | 65,681,697 | 309,005,937 | 246,419,811 | 60,623,891 | 51,846,771 | |||||||||||||||||||||
$ | 84,587,102 | $ | 76,136,864 | $ | 343,084,077 | $ | 309,005,937 | $ | 64,295,063 | $ | 60,623,891 | |||||||||||||||
Growth Fund | Small-Company Stock Fund | International Value Fund | ||||||||||||||||||||||||
Six Months Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||||||
June 30, | Year Ended | June 30, | Year Ended | June 30, | Year Ended | |||||||||||||||||||||
2011 | December 31, | 2011 | December 31, | 2011 | December 31, | |||||||||||||||||||||
(Unaudited) | 2010 | (Unaudited) | 2010 | (Unaudited) | 2010 | |||||||||||||||||||||
$ | (30,971 | ) | $ | (41,831 | ) | $ | (97,881 | ) | $ | 161,299 | $ | 2,693,039 | $ | 2,586,450 | ||||||||||||
2,287,306 | 2,690,103 | 1,197,226 | 1,125,728 | 1,600,096 | (4,190,423 | ) | ||||||||||||||||||||
(844,022 | ) | 1,129,887 | 9,070,683 | 24,006,859 | 1,886,667 | 8,558,860 | ||||||||||||||||||||
1,412,313 | 3,778,159 | 10,170,028 | 25,293,886 | 6,179,802 | 6,954,887 | |||||||||||||||||||||
— | — | — | (163,992 | ) | (1,464,407 | ) | (1,973,898 | ) | ||||||||||||||||||
(531,871 | ) | — | — | — | — | — | ||||||||||||||||||||
(531,871 | ) | — | — | (163,992 | ) | (1,464,407 | ) | (1,973,898 | ) | |||||||||||||||||
3,062,945 | 6,213,869 | 46,001,972 | 23,188,646 | 16,159,802 | 7,552,578 | |||||||||||||||||||||
343 | 145 | 4,271 | 7,560 | 177 | 1,419 | |||||||||||||||||||||
3,063,288 | 6,214,014 | 46,006,243 | 23,196,206 | 16,159,979 | 7,553,997 | |||||||||||||||||||||
3,943,730 | 9,992,173 | 56,176,271 | 48,326,100 | 20,875,374 | 12,534,986 | |||||||||||||||||||||
29,051,350 | 19,059,177 | 114,158,674 | 65,832,574 | 135,454,935 | 122,919,949 | |||||||||||||||||||||
$ | 32,995,080 | $ | 29,051,350 | $ | 170,334,945 | $ | 114,158,674 | $ | 156,330,309 | $ | 135,454,935 | |||||||||||||||
Statements of Changes in Net Assets | 49 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL HIGHLIGHTS: Daily Income Fund
For a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||
Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||||
2011 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF YEAR | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||||
Income from investment operations | ||||||||||||||||||||||||||
Net investment income | — | (a,b,c) | — | (a,b,c) | — | (a,b,c) | 0.02 | 0.05 | 0.04 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | — | — | — | — | (b) | — | — | |||||||||||||||||||
Total from investment operations | — | — | — | 0.02 | 0.05 | 0.04 | ||||||||||||||||||||
Distributions | ||||||||||||||||||||||||||
Net investment income | — | (b) | — | (b) | — | (b) | (0.02 | ) | (0.05 | ) | (0.04 | ) | ||||||||||||||
Net realized gain | — | — | — | — | — | — | ||||||||||||||||||||
Total distributions | — | — | — | (0.02 | ) | (0.05 | ) | (0.04 | ) | |||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | ||||||||||||||||||||
TOTAL RETURN | 0.01 | %(d) | 0.01 | % | 0.31 | % | 2.14 | % | 4.62 | % | 4.37 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||||||||||||||
Net assets, end of period (thousands) | $ | 188,489 | $ | 187,089 | $ | 191,492 | $ | 182,011 | $ | 149,303 | $ | 127,625 | ||||||||||||||
Ratio of gross expenses before voluntary expense limitation to average net assets | 0.69 | %(e) | 0.69 | % | 0.73 | % | 0.69 | % | 0.71 | % | 0.74 | % | ||||||||||||||
Ratio of net investment income to average net assets | 0.00 | %(a,c,e) | 0.01 | %(a,c) | 0.30 | %(a,c) | 2.08 | % | 4.52 | % | 4.30 | % | ||||||||||||||
Ratio of expenses to average net assets | 0.18 | %(a,c,e) | 0.24 | %(a,c) | 0.47 | %(a,c) | 0.69 | % | 0.71 | % | 0.74 | % |
(a) | Excludes excess investment management fees and other expenses in accordance with the Expense Limitation Agreement with RE Advisers | |
(b) | Less than $0.01 per share. | |
(c) | On January 27, 2009, RE Advisers voluntarily and temporarily reduced the amount of the expense limitation from 0.80% to 0.50%. Additionally, effective August 14, 2009, RE Advisers agreed to further waive fees or reimburse expenses to the extent necessary to assist the Fund in attempting to maintain a positive yield. The temporary waiver continued throughout 2010 and through the date of issuance of this report. | |
(d) | Aggregate total return for the period. | |
(e) | Annualized. |
50 | Financial Highlights |
The accompanying notes are an integral part of these financial statements.
FINANCIAL HIGHLIGHTS: Short-Term Government Securities Fund
For a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||
Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||||
2011 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF YEAR | $5.26 | $5.25 | $5.26 | $5.17 | $5.10 | $5.06 | ||||||||||||||||||||
Income from investment operations | ||||||||||||||||||||||||||
Net investment income | 0.05 | 0.12 | 0.14 | (a) | 0.16 | (a) | 0.20 | (a) | 0.14 | (a) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | — | 0.01 | — | (b) | 0.10 | 0.07 | 0.05 | |||||||||||||||||||
Total from investment operations | 0.05 | 0.13 | 0.14 | 0.26 | 0.27 | 0.19 | ||||||||||||||||||||
Distributions | ||||||||||||||||||||||||||
Net investment income | (0.05 | ) | (0.12 | ) | (0.14 | ) | (0.16 | ) | (0.20 | ) | (0.14 | ) | ||||||||||||||
Net realized gain | — | (b) | — | (b) | (0.01 | ) | (0.01 | ) | — | (0.01 | ) | |||||||||||||||
Total distributions | (0.05 | ) | (0.12 | ) | (0.15 | ) | (0.17 | ) | (0.20 | ) | (0.15 | ) | ||||||||||||||
NET ASSET VALUE, END OF PERIOD | $5.26 | $5.26 | $5.25 | $5.26 | $5.17 | $5.10 | ||||||||||||||||||||
TOTAL RETURN | 0.91 | %(c) | 2.57 | % | 2.85 | % | 5.16 | % | 5.50 | % | 3.87 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||||||||||||||
Net assets, end of period (thousands) | $ | 84,587 | $ | 76,137 | $ | 65,682 | $ | 55,354 | $ | 39,463 | $ | 40,779 | ||||||||||||||
Ratio of gross expenses before voluntary expense limitation to average net assets | 0.74 | %(d) | 0.75 | % | 0.78 | % | 0.82 | % | 0.87 | % | 0.87 | % | ||||||||||||||
Ratio of net investment income to | ||||||||||||||||||||||||||
average net assets | 1.82 | %(d) | 2.27 | % | 2.73 | %(a) | 3.06 | %(a) | 4.00 | %(a) | 2.89 | %(a) | ||||||||||||||
Ratio of expenses to average net assets | 0.74 | %(d) | 0.75 | % | 0.75 | %(a) | 0.75 | %(a) | 0.75 | %(a) | 0.75 | %(a) | ||||||||||||||
Portfolio turnover rate | 11 | % | 26 | % | 28 | % | 50 | % | 47 | % | 30 | % |
(a) | Excludes excess investment management fees and other expenses in accordance with the Expense Limitation Agreement with RE Advisers. | |
(b) | Less than $.01 per share. | |
(c) | Aggregate total return for the period. | |
(d) | Annualized. |
Financial Highlights | 51 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL HIGHLIGHTS: Short-Term Bond Fund
For a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||
Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||||
2011 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF YEAR | $5.19 | $5.13 | $4.72 | $5.17 | $5.16 | $5.13 | ||||||||||||||||||||
Income from investment operations | ||||||||||||||||||||||||||
Net investment income | 0.09 | 0.23 | 0.33 | (a) | 0.27 | (a) | 0.22 | (a) | 0.19 | (a) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.01 | ) | 0.06 | 0.42 | (0.45 | ) | 0.01 | 0.03 | ||||||||||||||||||
Total from investment operations | 0.08 | 0.29 | 0.75 | (0.18 | ) | 0.23 | 0.22 | |||||||||||||||||||
Distributions | ||||||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.23 | ) | (0.33 | ) | (0.27 | ) | (0.22 | ) | (0.19 | ) | ||||||||||||||
Net realized gain | — | — | (0.01 | ) | — | — | — | |||||||||||||||||||
Total distributions | (0.09 | ) | (0.23 | ) | (0.34 | ) | (0.27 | ) | (0.22 | ) | (0.19 | ) | ||||||||||||||
NET ASSET VALUE, END OF PERIOD | $5.18 | $5.19 | $5.13 | $4.72 | $5.17 | $5.16 | ||||||||||||||||||||
TOTAL RETURN | 1.57 | %(b) | 5.73 | % | 16.38 | % | (3.52 | )% | 4.62 | % | 4.38 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||||||||||||||
Net assets, end of period (thousands) | $ | 343,084 | $ | 309,006 | $ | 246,420 | $ | 204,332 | $ | 228,591 | $ | 208,482 | ||||||||||||||
Ratio of gross expenses before voluntary expense limitation to average net assets | 0.79 | %(c) | 0.80 | % | 0.83 | % | 0.81 | % | 0.82 | % | 0.84 | % | ||||||||||||||
Ratio of net investment income to average net assets | 3.53 | %(c) | 4.38 | % | 6.62 | %(a) | 5.49 | %(a) | 4.33 | %(a) | 3.71 | %(a) | ||||||||||||||
Ratio of expenses to average net assets | 0.79 | %(c) | 0.80 | % | 0.80 | %(a) | 0.80 | %(a) | 0.80 | %(a) | 0.80 | %(a) | ||||||||||||||
Portfolio turnover rate | 18 | % | 38 | % | 52 | % | 56 | % | 41 | % | 40 | % |
(a) | Excludes excess investment management fees and other expenses in accordance with the Expense Limitation Agreement with RE Advisers. | |
(b) | Aggregate total return for the period. | |
(c) | Annualized. |
52 | Financial Highlights |
The accompanying notes are an integral part of these financial statements.
FINANCIAL HIGHLIGHTS: Stock Index Fund
For a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||
Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||||
2011 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF YEAR | $9.31 | $8.24 | $6.64 | $10.94 | $10.57 | $9.30 | ||||||||||||||||||||
Income from investment operations | ||||||||||||||||||||||||||
Net investment income | 0.07 | 0.12 | 0.11 | 0.17 | 0.15 | 0.13 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.47 | 1.07 | 1.60 | (4.25 | ) | 0.37 | 1.27 | |||||||||||||||||||
Total from investment operations | 0.54 | 1.19 | 1.71 | (4.08 | ) | 0.52 | 1.40 | |||||||||||||||||||
Distributions | ||||||||||||||||||||||||||
Net investment income | — | (0.12 | ) | (0.11 | ) | (0.22 | ) | (0.15 | ) | (0.13 | ) | |||||||||||||||
Net realized gain | — | — | — | — | — | — | ||||||||||||||||||||
Total distributions | — | (0.12 | ) | (0.11 | ) | (0.22 | ) | (0.15 | ) | (0.13 | ) | |||||||||||||||
NET ASSET VALUE, END OF PERIOD | $9.85 | $9.31 | $8.24 | $6.64 | $10.94 | $10.57 | ||||||||||||||||||||
TOTAL RETURN | 5.80 | %(b) | 14.47 | % | 25.83 | % | (37.41 | )% | 4.91 | % | 15.01 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||||||||||||||
Net assets, end of period (thousands) | $ | 64,295 | $ | 60,624 | $ | 51,847 | $ | 39,786 | $ | 62,332 | $ | 56,508 | ||||||||||||||
Ratio of net investment income to average net assets | 1.40 | %(c) | 1.45 | % | 1.66 | % | 1.82 | % | 1.44 | % | 1.32 | % | ||||||||||||||
Ratio of expenses to average net assets | 0.60 | %(c) | 0.62 | % | 0.75 | % | 0.59 | % | 0.64 | % | 0.68 | % | ||||||||||||||
Portfolio turnover rate(a) | N/A | N/A | N/A | N/A | N/A | N/A |
(a) | See Appendix for the portfolio turnover of the S&P 500 Stock Master Portfolio. | |
(b) | Aggregate total return for the period. | |
(c) | Annualized. |
Financial Highlights | 53 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL HIGHLIGHTS: Value Fund
For a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||
Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||||
2011 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF YEAR | $30.70 | $27.52 | $22.03 | $35.48 | $35.94 | $32.78 | ||||||||||||||||||||
Income from investment operations | ||||||||||||||||||||||||||
Net investment income | 0.24 | 0.38 | 0.40 | 0.59 | 0.83 | 0.57 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.26 | 3.18 | 5.49 | (13.45 | ) | 0.37 | 5.25 | |||||||||||||||||||
Total from investment operations | 2.50 | 3.56 | 5.89 | (12.86 | ) | 1.20 | 5.82 | |||||||||||||||||||
Distributions | ||||||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.38 | ) | (0.40 | ) | (0.59 | ) | (0.83 | ) | (0.57 | ) | ||||||||||||||
Net realized gain | — | — | — | — | (0.83 | ) | (2.09 | ) | ||||||||||||||||||
Total distributions | (0.24 | ) | (0.38 | ) | (0.40 | ) | (0.59 | ) | (1.66 | ) | (2.66 | ) | ||||||||||||||
NET ASSET VALUE, END OF PERIOD | $32.96 | $30.70 | $27.52 | $22.03 | $35.48 | $35.94 | ||||||||||||||||||||
TOTAL RETURN | 8.15 | %(a) | 13.05 | % | 26.98 | % | (36.43 | )% | 3.25 | % | 17.82 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||||||||||||||
Net assets, end of period (thousands) | $ | 594,272 | $ | 547,616 | $ | 497,076 | $ | 422,740 | $ | 723,406 | $ | 649,478 | ||||||||||||||
Ratio of net investment income to average net assets | 1.51 | %(b) | 1.32 | % | 1.71 | % | 1.96 | % | 2.23 | % | 1.68 | % | ||||||||||||||
Ratio of expenses to average net assets | 0.69 | %(b) | 0.73 | % | 0.80 | % | 0.70 | % | 0.66 | % | 0.71 | % | ||||||||||||||
Portfolio turnover rate | 1 | % | 4 | % | 3 | % | 6 | % | 4 | % | 13 | % |
(a) | Aggregate total return for the period. | |
(b) | Annualized. |
54 | Financial Highlights |
The accompanying notes are an integral part of these financial statements.
FINANCIAL HIGHLIGHTS: Growth Fund
For a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||
Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||||
2011 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF YEAR | $5.80 | $5.02 | $3.31 | $5.87 | $5.22 | $5.06 | ||||||||||||||||||||
Income from investment operations | ||||||||||||||||||||||||||
Net investment loss | (0.01 | ) | (0.01 | ) | — | (a) | (0.03 | ) | (0.05 | ) | (0.07 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.29 | 0.79 | 1.71 | (2.37 | ) | 0.91 | 0.35 | |||||||||||||||||||
Total from investment operations | 0.28 | 0.78 | 1.71 | (2.40 | ) | 0.86 | 0.28 | |||||||||||||||||||
Distributions | ||||||||||||||||||||||||||
Net investment income | — | — | — | — | — | — | ||||||||||||||||||||
Net realized gain | (0.10 | ) | — | — | (0.16 | ) | (0.21 | ) | (0.12 | ) | ||||||||||||||||
Total distributions | (0.10 | ) | — | — | (0.16 | ) | (0.21 | ) | (0.12 | ) | ||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $5.98 | $5.80 | $5.02 | $3.31 | $5.87 | $5.22 | ||||||||||||||||||||
TOTAL RETURN | 4.79 | %(b) | 15.54 | % | 51.66 | % | (40.93 | )% | 17.55 | % | 5.48 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||||||||||||||
Net assets, end of period (thousands) | $ | 32,995 | $ | 29,051 | $ | 19,059 | $ | 6,707 | $ | 9,001 | $ | 6,776 | ||||||||||||||
Ratio of gross expenses before voluntary expense limitation to average net assets | 1.17 | %(c) | 1.23 | % | 1.74 | % | 1.30 | % | 1.26 | % | 1.50 | % | ||||||||||||||
Ratio of net investment income (loss) to average net assets | (0.19 | )%(c,d) | (0.17 | )%(d) | (0.09 | )%(d) | (0.61 | )%(d) | (0.93 | )% | (1.16 | )% | ||||||||||||||
Ratio of expenses to average net assets | 0.95 | %(c,d) | 0.95 | %(d) | 0.95 | %(d) | 0.93 | %(d) | 1.26 | % | 1.50 | % | ||||||||||||||
Expense ratio of underlying exchange traded fund | N/A | N/A | N/A | 0.18 | %(e) | 0.20 | % | 0.20 | % | |||||||||||||||||
Effective expense ratio | 0.95 | % | 0.95 | % | 0.95 | % | 1.11 | % | 1.46 | % | 1.70 | % | ||||||||||||||
Portfolio turnover rate | 36 | % | 67 | % | 66 | % | 96 | %(f) | 19 | % | 27 | % |
(a) | Less than $0.01 per share. | |
(b) | Aggregate total return for the period. | |
(c) | Annualized. | |
(d) | Excludes excess investment management fees and other expenses in accordance with the Expense Limitation Agreement with RE Advisers. On April 29, 2008 the expense limitation agreement was revised from 1.50% to 0.75%. Further, on December 5, 2008 the expense limitation agreement was revised from 0.75% to 0.95%. | |
(e) | On December 5, 2008, the Nasdaq-100 Index Tracking Stock Fund changed its name, investment strategies and objective. At that time the Fund sold its entire position in PowerShares QQQ, the underlying exchange traded fund. The expense ratio of the underlying exchange traded fund is prorated for January 1, 2008 to December 4, 2008. | |
(f) | The portfolio turnover is unusually high because on December 5, 2008, the Nasdaq-100 Index Tracking Stock Fund sold its entire position in the PowerShares QQQ and invested the entire portfolio in individual securities with a new investment strategy and objective. |
Financial Highlights | 55 |
The accompanying notes are an integral part of these financial statements.
FINANCIAL HIGHLIGHTS: Small-Company Stock Fund
For a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||
Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||||
2011 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF YEAR | $22.79 | $17.04 | $11.81 | $18.16 | $19.06 | $17.00 | ||||||||||||||||||||
Income from investment operations | ||||||||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | 0.03 | 0.10 | 0.11 | 0.19 | 0.23 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.93 | 5.75 | 5.23 | (6.35 | ) | 0.06 | 2.60 | |||||||||||||||||||
Total from investment operations | 1.91 | 5.78 | 5.33 | (6.24 | ) | 0.25 | 2.83 | |||||||||||||||||||
Distributions | ||||||||||||||||||||||||||
Net investment income | — | (0.03 | ) | (0.10 | ) | (0.11 | ) | (0.19 | ) | (0.23 | ) | |||||||||||||||
Net realized gain | — | — | — | — | (0.96 | ) | (0.54 | ) | ||||||||||||||||||
Total distributions | — | — | (0.10 | ) | (0.11 | ) | (1.15 | ) | (0.77 | ) | ||||||||||||||||
NET ASSET VALUE, END OF PERIOD | $24.70 | $22.79 | $17.04 | $11.81 | $18.16 | $19.06 | ||||||||||||||||||||
TOTAL RETURN | 8.38 | %(a) | 33.94 | % | 45.10 | % | (34.33 | )% | 1.36 | % | 16.69 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||||||||||||||
Net assets, end of period (thousands) | $ | 170,335 | $ | 114,159 | $ | 65,833 | $ | 45,041 | $ | 66,910 | $ | 63,515 | ||||||||||||||
Ratio of net investment income (loss) to | ||||||||||||||||||||||||||
average net assets | (0.14 | )%(b) | 0.20 | % | 0.71 | % | 0.73 | % | 0.99 | % | 1.29 | % | ||||||||||||||
Ratio of expenses to average net assets | 1.11 | %(b) | 1.17 | % | 1.23 | % | 1.25 | % | 1.19 | % | 1.23 | % | ||||||||||||||
Portfolio turnover rate | 2 | % | 4 | % | 9 | % | 26 | % | 18 | % | 5 | % |
(a) | Aggregate total return for the period. | |
(b) | Annualized. |
56 | Financial Highlights |
The accompanying notes are an integral part of these financial statements.
FINANCIAL HIGHLIGHTS: International Value Fund
For a Share Outstanding Throughout Each Period
Six Months | ||||||||||||||||||||||||||
Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||||
2011 (Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
NET ASSET VALUE, BEGINNING OF YEAR | $7.57 | $7.27 | $5.90 | $9.84 | $9.72 | $7.79 | ||||||||||||||||||||
Income from investment operations | ||||||||||||||||||||||||||
Net investment income (a) | 0.14 | 0.14 | 0.18 | 0.23 | 0.36 | 0.05 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.22 | 0.27 | 1.35 | (3.68 | ) | 0.44 | 1.96 | |||||||||||||||||||
Total from investment operations | 0.36 | 0.41 | 1.53 | (3.45 | ) | 0.80 | 2.01 | |||||||||||||||||||
Distributions | ||||||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.11 | ) | (0.16 | ) | (0.37 | ) | (0.29 | ) | (0.07 | ) | ||||||||||||||
Net realized gain | — | — | — | (0.12 | ) | (0.39 | ) | (0.01 | ) | |||||||||||||||||
Total distributions | (0.08 | ) | (0.11 | ) | (0.16 | ) | (0.49 | ) | (0.68 | ) | (0.08 | ) | ||||||||||||||
NET ASSET VALUE, END OF PERIOD | $7.85 | $7.57 | $7.27 | $5.90 | $9.84 | $9.72 | ||||||||||||||||||||
TOTAL RETURN | 4.69 | %(b) | 5.73 | % | 25.93 | % | (35.43 | )% | 8.21 | % | 25.79 | % | ||||||||||||||
RATIOS/SUPPLEMENTAL DATA | ||||||||||||||||||||||||||
Net assets, end of period (thousands) | $ | 156,330 | $ | 135,455 | $ | 122,920 | $ | 92,716 | $ | 140,971 | $ | 91,903 | ||||||||||||||
Ratio of gross expenses before voluntary expense limitation to average net assets | 1.01 | %(c) | 1.02 | % | 1.06 | % | 1.01 | % | 1.00 | % | 1.04 | %(d) | ||||||||||||||
Ratio of net investment income to average net assets (a) | 3.73 | %(c) | 2.08 | % | 2.23 | % | 2.73 | % | 2.81 | % | 0.95 | % | ||||||||||||||
Ratio of expenses to average net assets (a) | 0.99 | %(c) | 0.99 | % | 0.99 | % | 0.98 | % | 0.99 | % | 0.99 | %(d) | ||||||||||||||
Portfolio turnover rate | 18 | % | 44 | % | 47 | % | 25 | % | 22 | % | 55 | % |
(a) | Excludes excess investment management fees and other expenses in accordance with the Expense Limitation Agreement with RE Advisers. | |
(b) | Aggregate total return for the period. | |
(c) | Annualized. | |
(d) | Expenses do not include the expenses of the Vanguard Developed Markets Index Fund, the Fund in which the International Value Fund invested substantially all of its assets for the period October 18, 2005 through June 11, 2006. |
Financial Highlights | 57 |
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
(Unaudited)
1. ORGANIZATION
Homestead Funds, Inc. (“Homestead Funds”) is a Maryland corporation registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, (“the Act”) as an open-end management investment company. Homestead Funds currently consists of eight funds: Daily Income Fund, Short-Term Government Securities Fund, Short-Term Bond Fund, Stock Index Fund, Value Fund, Growth Fund, Small-Company Stock Fund, and International Value Fund (the “Funds”).
Each Fund is a separate investment portfolio with distinct investment objectives, investment programs, policies and restrictions. The investment objectives of the Funds, as well as the nature and risks of the investment activities of each Fund, are set forth more fully in Homestead Funds’ Prospectus and Statement of Additional Information.
The Stock Index Fund seeks to achieve its investment objective by investing substantially all of its investable asset in one or more securities that are designed to track the performance of the S&P 500 Index. At June 30, 2011, the Stock Index Fund was operating as a feeder fund, whereby substantially all of its assets are invested in the S&P 500 Stock Master Portfolio (“Master Portfolio”), an open-end investment company managed by BlackRock Fund Advisors. At June 30, 2011, the Stock Index Fund’s investment constituted 2.82% of the Master Portfolio. The financial statements of the Master Portfolio are contained in the Appendix of this report and should be read in conjunction with the financial statements for the Stock Index Fund.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Security valuation: The Funds investments are valued as of the close of the New York Stock Exchange (usually 4:00 pm). Equity securities and exchange traded funds are valued at the closing price from the primary market in which the security trades. Fixed income securities are valued using the bid price provided by external pricing services. Short-term debt instruments held by the Daily Income Fund and commercial paper held by all Funds are valued at amortized cost, which approximates market value. Under the amortized cost method, discounts and premiums on securities purchased are amortized over the life of the respective securities. Registered investment companies are valued at the net asset value determined by the registered investment company after the close of the New York Stock Exchange on valuation date. The Stock Index Fund records its investment in the Master Portfolio at the market value of its proportionate interest in the net assets of the Master Portfolio.
If a security price is not available, or if an event occurs after the close of the primary market in which the security is traded, but before the time the net asset value of the Funds are calculated, the fair value of the security is determined based on procedures adopted by the Funds’ Board of Directors. These fair value procedures include utilizing pricing matrices and adjusting the market values of foreign securities based on market events between the close of foreign markets and the time that the net asset value is calculated. The Board of Directors of the Master Portfolio has also adopted fair value procedures, which could impact the valuation of the Stock Index Fund. Valuation of the securities is discussed in the notes to the Master Portfolio’s financial statements included in the Appendix of this report.
The International Value Fund may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contract’s terms. Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at the end of the period. Purchases and sales of investment securities and income and dividends received are translated into U.S. dollars at the exchange rate in effect on the transaction date. The effects of exchange rate fluctuations on investments are included with the realized and unrealized gain (loss) on investment securities.
The Funds adopted Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”), Fair Value Measurements and Disclosures (“ASC 820”) (formerly known as FAS 157), effective January 1, 2008. In accordance with ASC 820, fair value is defined as the price that the fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. ASC 820 established a three-tier hierarchy, which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. The three-tier hierarchy of inputs is summarized below:
• | Level 1—quoted prices in active markets for identical investments; | |
• | Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.); and | |
• | Level 3—significant unobservable inputs (including the fund’s own assumptions used to determine the fair value of investments). |
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used to value the Funds’ investments as of June 30, 2011:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Daily Income Fund | ||||||||||||||||
Commercial Paper | $ | — | $ | 126,464,559 | $ | — | $ | 126,464,559 | ||||||||
U.S. Government Agency Obligations | $ | — | $ | 40,635,799 | $ | — | $ | 40,635,799 | ||||||||
Corporate Notes | $ | — | $ | 3,657,052 | $ | — | $ | 3,657,052 | ||||||||
Cash Equivalents | $ | 17,925,760 | $ | — | $ | — | $ | 17,925,760 | ||||||||
$ | 17,925,760 | $ | 170,757,410 | $ | — | $ | 188,683,170 | |||||||||
Short-Term Government Securities Fund | ||||||||||||||||
U.S. Government Agency Obligations | $ | — | $ | 58,808,919 | $ | — | $ | 58,808,919 | ||||||||
Corporate Bonds | $ | — | $ | 7,999,052 | $ | — | $ | 7,999,052 | ||||||||
Mortgage Backed Securities | $ | — | $ | 4,630,025 | $ | — | $ | 4,630,025 | ||||||||
Municipal Bonds | $ | — | $ | 4,577,122 | $ | — | $ | 4,577,122 | ||||||||
Asset Backed Securities | $ | — | $ | 1,981,954 | $ | — | $ | 1,981,954 | ||||||||
Cash Equivalents | $ | 6,371,868 | $ | — | $ | — | $ | 6,371,868 | ||||||||
$ | 6,371,868 | $ | 77,997,072 | $ | — | $ | 84,368,940 | |||||||||
58 | Notes to Financial Statements |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Short-Term Bond Fund | ||||||||||||||||
Corporate Bonds | $ | — | $ | 102,650,613 | $ | — | $ | 102,650,613 | ||||||||
Asset Backed Securities | $ | — | $ | 60,004,435 | $ | — | $ | 60,004,435 | ||||||||
Municipal Bonds | $ | — | $ | 57,803,817 | $ | — | $ | 57,803,817 | ||||||||
Yankee Bonds | $ | — | $ | 44,392,158 | $ | — | $ | 44,392,158 | ||||||||
Mortgage Backed Securities | $ | — | $ | 37,056,071 | $ | — | $ | 37,056,071 | ||||||||
U.S. Government Agency Obligations | $ | — | $ | 25,987,361 | $ | — | $ | 25,987,361 | ||||||||
Cash Equivalents | $ | 17,181,596 | $ | — | $ | — | $ | 17,181,596 | ||||||||
$ | 17,181,596 | $ | 327,894,455 | $ | — | $ | 345,076,051 | |||||||||
Value Fund | ||||||||||||||||
Common Stocks | $ | 572,613,230 | $ | — | $ | — | $ | 572,613,230 | ||||||||
Cash Equivalents | $ | 21,410,045 | $ | — | $ | — | $ | 21,410,045 | ||||||||
$ | 594,023,275 | $ | — | $ | — | $ | 594,023,275 | |||||||||
Growth Fund | ||||||||||||||||
Common Stocks | $ | 32,861,258 | $ | — | $ | — | $ | 32,861,258 | ||||||||
Cash Equivalents | $ | 73,647 | $ | — | $ | — | $ | 73,647 | ||||||||
$ | 32,934,905 | $ | — | $ | — | $ | 32,934,905 | |||||||||
Small-Company Fund | ||||||||||||||||
Common Stocks | $ | 145,158,566 | $ | — | $ | — | $ | 145,158,566 | ||||||||
Exchange Traded Fund | $ | 6,973,950 | $ | — | $ | — | $ | 6,973,950 | ||||||||
Commercial Paper | $ | — | $ | 1,999,973 | $ | — | $ | 1,999,973 | ||||||||
Cash Equivalents | $ | 16,052,688 | $ | — | $ | — | $ | 16,052,688 | ||||||||
$ | 168,185,204 | $ | 1,999,973 | $ | — | $ | 170,185,177 | |||||||||
International Value | ||||||||||||||||
Common Stocks | $ | 9,428,789 | $ | 141,296,854 | $ | — | $ | 150,725,643 | ||||||||
Cash Equivalents | $ | 2,192,940 | $ | — | $ | — | $ | 2,192,940 | ||||||||
$ | 11,621,729 | $ | 141,296,854 | $ | — | $ | 152,918,583 | |||||||||
Distributions to shareholders: Dividends to shareholders are recorded on the ex-dividend date. Income dividends for the Daily Income, Short-Term Government Securities and Short-Term Bond Funds are declared daily and paid monthly.
Income dividends for Value Fund are declared and paid semi-annually. Income dividends for the Stock Index, Growth, Small-Company Stock, and International Value Funds are declared and paid annually. Capital gains dividends, if any, are declared and paid at the end of each fiscal year, or more frequently, if necessary.
Use of estimates in the preparation of financial statements: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Other: Dividend income is recorded on the ex-dividend date. Interest income, including amortization of premiums and accretion of discount, and expenses are recorded on the accrual basis. Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions are reported on the identified cost basis.
The Stock Index Fund records a pro rata share of the Master Portfolio’s income, expenses, and realized and unrealized gains and losses in addition to the Fund’s own expenses which are accrued daily.
In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on claims that may be made against the Funds in the future and therefore cannot be estimated; however, based on experience, the risk of material loss from claims is considered remote.
Fund management believes that no events have occurred between June 30, 2011, the date of this report, and the date of issuance of the financial statements, that require adjustment of, or disclosure in, the accompanying financial statements.
3. FEDERAL INCOME TAX INFORMATION
The Funds intend to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and will distribute all net investment income to its shareholders. Therefore, no provision for Federal income taxes is required.
Each Fund files U.S. federal, state, and local tax returns as required. Each Fund’s tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statue of limitations, which is generally three years after filing of the tax return but could be longer in certain circumstances.
Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. These differences are primarily due to differing treatments for futures and options transactions, foreign currency transactions, losses deferred due to wash sales, losses deferred due to post-October losses, partnership investments, deferred compensation payable and REIT transactions.
Permanent book and tax basis differences, if any, relating to shareholder distributions will result in reclassifications to paid-in capital.
At June 30, 2011, the cost of securities for federal income tax purposes, the aggregate gross unrealized gain for all securities for which there was an excess of value over tax cost and the aggregate gross unrealized loss for all securities for which there was an excess of tax cost over value was as follows:
Net | ||||||||||||||||
Tax | Tax | Unrealized | ||||||||||||||
Unrealized | Unrealized | Gain | ||||||||||||||
Tax Cost | Gain | (Loss) | (Loss) | |||||||||||||
Daily Income Fund | $ | 188,683,170 | $ | — | $ | — | $ | — | ||||||||
Short-Term Government Securities Fund | $ | 83,092,567 | $ | 1,334,079 | $ | (57,706 | ) | $ | 1,276,373 | |||||||
Short-Term Bond Fund | $ | 345,581,707 | $ | 7,754,122 | $ | (8,259,778 | ) | $ | (505,656 | ) | ||||||
Value Fund | $ | 425,695,549 | $ | 203,753,327 | $ | (35,425,601 | ) | $ | 168,327,726 | |||||||
Growth Fund | $ | 28,570,161 | $ | 4,708,091 | $ | (343,346 | ) | $ | 4,364,745 | |||||||
Small-Company Stock Fund | $ | 121,582,190 | $ | 52,461,776 | $ | (3,858,789 | ) | $ | 48,602,987 | |||||||
International Value Fund | $ | 144,007,252 | $ | 15,812,039 | $ | (6,900,708 | ) | $ | 8,911,331 |
Net unrealized appreciation/(depreciation) of Stock Index Fund in the Master Portfolio consists of an allocated portion of the portfolio’s unrealized appreciation/(depreciation). For information pertaining to the unrealized appreciation/(depreciation) for the Master Portfolio, please refer to the Appendix of this report.
4. INVESTMENT TRANSACTIONS
Purchases and proceeds from sales of securities, other than short-term and U.S. Government securities, for the period ended June 30, 2011, were as follows:
Proceeds | ||||||||
Purchases | from Sale | |||||||
Short-Term Government Securities Fund | $ | 3,291,678 | $ | 7,888,715 | ||||
Short-Term Bond Fund | $ | 79,392,619 | $ | 53,444,466 | ||||
Value Fund | $ | 8,310,805 | $ | 19,685,301 | ||||
Growth Fund | $ | 14,195,928 | $ | 11,580,753 | ||||
Small-Company Stock Fund | $ | 38,271,534 | $ | 2,850,006 | ||||
International Value Fund | $ | 44,828,673 | $ | 26,113,415 |
Purchases and proceeds from sales of long-term U.S. Government securities, for the period ended June 30, 2011, were as follows:
Proceeds | ||||||||
Purchases | from Sale | |||||||
Short-Term Government Securities Fund | $ | 7,795,104 | $ | 396,757 | ||||
Short-Term Bond Fund | $ | 13,319,785 | $ | 2,162,496 |
Notes to Financial Statements | 59 |
For information pertaining to the purchases and proceeds from sales of securities for the Stock Index Fund please refer to the Appendix of this report.
5. RELATED PARTIES
The investment management agreements between Homestead Funds, with respect to each Fund (other than the Stock Index Fund), and RE Advisers Corporation (“RE Advisers”), an indirect, wholly-owned subsidiary of National Rural Electric Cooperative Association (“NRECA”), provide for an annual investment management fee, computed daily and paid monthly, based on each Fund’s average daily net assets. The annualized management fee rates for the Funds are 0.50% of average daily net assets for Daily Income Fund; 0.45% of average daily net assets for Short-Term Government Securities Fund; 0.60% of average daily net assets for Short-Term Bond Fund; 0.65% of average daily net assets up to $200 million, 0.50% of average daily net assets up to the next $200 million, 0.40% of average daily net assets in excess of $400 million for Value Fund; 0.65% of average daily net assets up to $250 million and 0.60% of average daily net assets in excess of $250 million for the Growth Fund; 0.85% of average daily net assets up to $200 million and 0.75% of average daily net assets in excess of $200 million for Small-Company Stock Fund; and 0.75% of average daily net assets up to $300 million, 0.65% of average daily net assets up to the next $100 million, 0.55% of average daily net assets up to the next $100 million, and 0.50% of average daily net assets in excess of $500 million for International Value Fund.
T. Rowe Price Associates, Inc. (“T. Rowe”) is the Subadvisor for the Growth Fund and Mercator Asset Management, L.P. (“Mercator”) is the Subadvisor for the International Value Fund. The Subadvisors select, buy, and sell securities under the supervision of RE Advisers and the Board of Directors. RE Advisers pays the Subadvisors from the fees it receives from the Funds.
With respect to the Stock Index Fund, an Administrative Service Agreement with RE Advisers has been contracted, under which RE Advisers provides certain administrative services to the Fund. Pursuant to this agreement, RE Advisers receives a fee of 0.25% of the Fund’s average daily net assets. In addition, the Stock Index Fund is allocated a management fee from the Master Portfolio, calculated daily at an annual rate of 0.05% of its average daily net assets. This fee includes advisory, custody, and administrative fees provided by the Master Portfolio on behalf of its investors.
RE Advisers has agreed, as part of the Expense Limitation Agreement entered into with Homestead Funds, with respect to each Fund, to waive its management fee and/or reimburse for all Fund operating expenses, excluding certain non-recurring expenses, which in any year exceed 0.80% of the average daily net assets of the Daily Income Fund and Short-Term Bond Fund, 0.75% of the average daily net assets of the Short-Term Government Securities Fund and Stock Index Fund, 1.25% of the average daily net assets of Value Fund, 0.95% of the average daily net assets of Growth Fund, 1.50% of the average daily net assets of Small-Company Stock Fund and 0.99% of the average daily net assets of the International Value Fund.
On January 27, 2009, RE Advisers voluntarily and temporarily reduced the expense limitation for the Daily Income Fund from 0.80% to 0.50%. Further, on August 14, 2009, RE Advisers agreed to waive additional fees or reimburse expenses, if necessary in order to assist the Daily Income Fund in maintaining a minimum yield. The temporary waiver continued throughout 2010 and through the date of issuance of this report.
Pursuant to the Expense Limitation Agreement, management fees waived for the period ended June 30, 2011, amounted to $465,705 for Daily Income Fund, $36,393 for Growth Fund, and $16,790 for International Value Fund. Additionally, RE Advisers paid the Daily Income Fund, $13,584 during the period, for expense reimbursements.
The Stock Index, Value, Growth, Small-Company Stock, and International Value Funds each receive a 2% redemption fee on shares sold within 30 days of purchase.
60 | Notes to Financial Statements |
6. CAPITAL SHARE TRANSACTIONS
As of June 30, 2011, 500 million shares of $.01 par value capital shares are authorized for Daily Income Fund, 200 million shares for Short-Term Bond Fund, and 100 million shares for Short-Term Government Securities Fund, Stock Index Fund, Value Fund, Growth Fund, Small-Company Stock Fund, and International Value Fund. Transactions in capital shares were as follows:
Shares Issued | ||||||||||||||||||||||
Shares | In Reinvestment | Total Shares | Total Shares | Net Increase | ||||||||||||||||||
Sold | of Dividends | Issued | Redeemed | (Decrease) | ||||||||||||||||||
Period Ended June 30, 2011 | ||||||||||||||||||||||
In Dollars | ||||||||||||||||||||||
Daily Income Fund | $ | 57,167,945 | $ | 8,943 | $ | 57,176,888 | $ | (55,770,660 | ) | $ | 1,406,228 | |||||||||||
Short-Term Government Securities Fund | $ | 16,918,039 | $ | 699,513 | $ | 17,617,552 | $ | (9,094,575 | ) | $ | 8,522,977 | |||||||||||
Short-Term Bond Fund | $ | 55,718,088 | $ | 5,549,295 | $ | 61,267,383 | $ | (26,342,803 | ) | $ | 34,924,580 | |||||||||||
Stock Index Fund | $ | 7,466,419 | $ | 4,841 | $ | 7,471,260 | $ | (7,271,027 | ) | $ | 200,233 | |||||||||||
Value Fund | $ | 44,085,807 | $ | 4,058,500 | $ | 48,144,307 | $ | (41,385,026 | ) | $ | 6,759,281 | |||||||||||
Growth Fund | $ | 6,456,926 | $ | 530,442 | $ | 6,987,368 | $ | (3,924,423 | ) | $ | 3,062,945 | |||||||||||
Small-Company Stock Fund | $ | 65,748,222 | $ | — | $ | 65,748,222 | $ | (19,746,250 | ) | $ | 46,001,972 | |||||||||||
International Value Fund | $ | 23,869,359 | $ | 1,446,603 | $ | 25,315,962 | $ | (9,156,160 | ) | $ | 16,159,802 | |||||||||||
In Shares | ||||||||||||||||||||||
Daily Income Fund | 57,167,945 | 8,943 | 57,176,888 | (55,770,660 | ) | 1,406,228 | ||||||||||||||||
Short-Term Government Securities Fund | 3,219,011 | 133,163 | 3,352,174 | (1,731,175 | ) | 1,620,999 | ||||||||||||||||
Short-Term Bond Fund | 10,743,607 | 1,070,304 | 11,813,911 | (5,079,959 | ) | 6,733,952 | ||||||||||||||||
Stock Index Fund | 767,374 | 500 | 767,874 | (750,612 | ) | 17,262 | ||||||||||||||||
Value Fund | 1,351,354 | 123,139 | 1,474,493 | (1,280,675 | ) | 193,818 | ||||||||||||||||
Growth Fund | 1,071,724 | 88,703 | 1,160,427 | (653,045 | ) | 507,382 | ||||||||||||||||
Small-Company Stock Fund | 2,698,201 | — | 2,698,201 | (810,898 | ) | 1,887,303 | ||||||||||||||||
International Value Fund | 3,017,501 | 184,281 | 3,201,782 | (1,162,153 | ) | 2,039,629 | ||||||||||||||||
Year Ended December 31, 2010 | ||||||||||||||||||||||
In Dollars | ||||||||||||||||||||||
Daily Income Fund | $ | 98,763,865 | $ | 18,188 | $ | 98,782,053 | $ | (103,179,593 | ) | $ | (4,397,540 | ) | ||||||||||
Short-Term Government Securities Fund | $ | 23,464,276 | $ | 1,596,026 | $ | 25,060,302 | $ | (14,733,339 | ) | $ | 10,326,963 | |||||||||||
Short-Term Bond Fund | $ | 91,128,790 | $ | 12,130,425 | $ | 103,259,215 | $ | (43,486,068 | ) | $ | 59,773,147 | |||||||||||
Stock Index Fund | $ | 10,233,882 | $ | 780,373 | $ | 11,014,255 | $ | (9,108,192 | ) | $ | 1,906,063 | |||||||||||
Value Fund | $ | 60,029,598 | $ | 6,254,109 | $ | 66,283,707 | $ | (72,878,765 | ) | $ | (6,595,058 | ) | ||||||||||
Growth Fund | $ | 12,660,537 | $ | — | $ | 12,660,537 | $ | (6,446,668 | ) | $ | 6,213,869 | |||||||||||
Small-Company Stock Fund | $ | 42,626,836 | $ | 161,875 | $ | 42,788,711 | $ | (19,600,065 | ) | $ | 23,188,646 | |||||||||||
International Value Fund | $ | 31,499,482 | $ | 1,959,866 | $ | 33,459,348 | $ | (25,906,770 | ) | $ | 7,552,578 | |||||||||||
In Shares | ||||||||||||||||||||||
Daily Income Fund | 98,763,865 | 18,188 | 98,782,053 | (103,179,593 | ) | (4,397,540 | ) | |||||||||||||||
Short-Term Government Securities Fund | 4,448,375 | 302,621 | 4,750,996 | (2,794,534 | ) | 1,956,462 | ||||||||||||||||
Short-Term Bond Fund | 17,551,204 | 2,334,273 | 19,885,477 | (8,371,382 | ) | 11,514,095 | ||||||||||||||||
Stock Index Fund | 1,216,440 | 83,821 | 1,300,261 | (1,081,013 | ) | 219,248 | ||||||||||||||||
Value Fund | 2,126,828 | 223,400 | 2,350,228 | (2,572,454 | ) | (222,226 | ) | |||||||||||||||
Growth Fund | 2,464,881 | — | 2,464,881 | (1,258,309 | ) | 1,206,572 | ||||||||||||||||
Small-Company Stock Fund | 2,185,227 | 7,103 | 2,192,330 | (1,047,138 | ) | 1,145,192 | ||||||||||||||||
International Value Fund | 4,475,380 | 270,269 | 4,745,649 | (3,776,438 | ) | 969,211 |
Notes to Financial Statements | 61 |
Directors and Officers
James F. Perna, Director and Chairman of the Board
Peter R. Morris, Director, President and Chief Executive Officer
Douglas W. Johnson, Director and Chairman of the Audit Committee
Kenneth R. Meyer, Director and Chairman of the Compensation Committee
Anthony M. Marinello, Director
Sheldon C. Petersen, Director
Mark Rose, Director
Peter J. Tonetti, Director
Anthony C. Williams, Director
Cynthia L. Dove, Vice President and Chief Operations Officer
Amy M. DiMauro, Treasurer
Danielle C. Sieverling, Chief Compliance Officer
Kelly Bowers Whetstone, Secretary
62 | Directors and Officers |
PORTFOLIO OF INVESTMENTS: S&P 500 Stock Master Portfolio
June 30, 2011 (Unaudited)
COMMON STOCKS | Shares | Value | ||||||||
(99.4% of net assets) | ||||||||||
CONSUMER DISCRETIONARY—11.6% | ||||||||||
Auto Components—0.3% | ||||||||||
The Goodyear Tire & Rubber Co. (a) | 46,147 | $ | 773,885 | |||||||
Johnson Controls, Inc. (b) | 127,873 | 5,327,189 | ||||||||
Total Auto Components | 6,101,074 | |||||||||
Automobiles—0.5% | ||||||||||
Ford Motor Co. (a) | 715,944 | 9,872,868 | ||||||||
Harley-Davidson, Inc. | 44,260 | 1,813,332 | ||||||||
Total Automobiles | 11,686,200 | |||||||||
Distributors—0.1% | ||||||||||
Genuine Parts Co. (b) | 29,575 | 1,608,880 | ||||||||
Total Distributors | 1,608,880 | |||||||||
Diversified Consumer Services—0.1% | ||||||||||
Apollo Group, Inc., Class A (a) | 22,888 | 999,748 | ||||||||
DeVry, Inc. | 11,735 | 693,890 | ||||||||
H&R Block, Inc. (b) | 56,996 | 914,216 | ||||||||
Total Diversified Consumer Services | 2,607,854 | |||||||||
Hotels, Restaurants & Leisure—1.8% | ||||||||||
Carnival Corp. | 81,130 | 3,052,922 | ||||||||
Chipotle Mexican Grill, Inc. (a) | 5,854 | 1,804,144 | ||||||||
Darden Restaurants, Inc. | 25,817 | 1,284,654 | ||||||||
International Game Technology (b) | 56,751 | 997,683 | ||||||||
Marriott International, Inc., Class A (b) | 53,734 | 1,907,020 | ||||||||
McDonald’s Corp. | 195,724 | 16,503,448 | ||||||||
Starbucks Corp. | 141,260 | 5,578,357 | ||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 36,731 | 2,058,405 | ||||||||
Wyndham Worldwide Corp. (b) | 32,349 | 1,088,544 | ||||||||
Wynn Resorts Ltd. | 14,288 | 2,050,899 | ||||||||
Yum! Brands, Inc. (a)(b) | 87,869 | 4,853,884 | ||||||||
Total Hotels, Restaurants, & Leisure | 41,179,960 | |||||||||
Household Durables—0.4% | ||||||||||
D.R. Horton, Inc. | 53,370 | 614,822 | ||||||||
Fortune Brands, Inc. | 29,144 | 1,858,513 | ||||||||
Harman International Industries, Inc. | 13,232 | 602,982 | ||||||||
Leggett & Platt, Inc. | 27,087 | 660,381 | ||||||||
Lennar Corp., Class A (b) | 30,519 | 553,920 | ||||||||
Newell Rubbermaid, Inc. | 54,155 | 854,566 | ||||||||
Pulte Homes, Inc. (a) | 64,217 | 491,902 | ||||||||
Stanley Black & Decker, Inc. | 31,730 | 2,286,147 | ||||||||
Whirlpool Corp. | 14,211 | 1,155,639 | ||||||||
Total Household Durables | 9,078,872 | |||||||||
Internet & Catalog Retail—1.0% | ||||||||||
Amazon.com, Inc. (a) | 67,321 | 13,766,472 | ||||||||
Expedia, Inc. (b) | 37,291 | 1,081,066 | ||||||||
NetFlix, Inc. (a) | 8,254 | 2,168,243 | ||||||||
priceline.com, Inc. (a)(b) | 9,355 | 4,789,105 | ||||||||
Total Internet & Catalog Retail | 21,804,886 | |||||||||
Leisure Equipment & Products—0.1% | ||||||||||
Hasbro, Inc. (b) | 25,606 | 1,124,871 | ||||||||
Mattel, Inc. (b) | 65,438 | 1,798,891 | ||||||||
Total Leisure Equipment & Products | 2,923,762 | |||||||||
Media—3.3% | ||||||||||
CBS Corp., Class B | 126,404 | 3,601,250 | ||||||||
Cablevision Systems Corp. | 43,597 | 1,578,647 | ||||||||
Comcast Corp., Class A | 521,857 | 13,223,856 | ||||||||
DIRECTV, Class A (a) | 144,915 | 7,364,580 | ||||||||
Discovery Communications, Inc. (a) | 52,439 | 2,147,902 | ||||||||
Gannett Co., Inc. | 45,522 | 651,875 | ||||||||
Interpublic Group of Cos., Inc. | 91,329 | 1,141,613 | ||||||||
The McGraw-Hill Cos., Inc. | 57,657 | 2,416,405 | ||||||||
News Corp., Class A (b) | 430,702 | 7,623,425 | ||||||||
Omnicom Group, Inc. (b) | 52,953 | 2,550,217 | ||||||||
Scripps Networks Interactive, Inc., Class A (b) | 17,206 | 841,029 | ||||||||
Time Warner Cable, Inc. (b) | 63,523 | 4,957,335 | ||||||||
Time Warner, Inc. | 202,104 | 7,350,523 | ||||||||
Viacom, Inc., Class B | 110,471 | 5,634,021 | ||||||||
The Walt Disney Co. | 356,410 | 13,914,246 | ||||||||
The Washington Post Co., Class B (b) | 1,001 | 419,369 | ||||||||
Total Media | 75,416,293 | |||||||||
Multiline Retail—1.5% | ||||||||||
Big Lots, Inc. (a) | 14,333 | 475,139 | ||||||||
Family Dollar Stores, Inc. (b) | 23,190 | 1,218,866 | ||||||||
J.C. Penney Co., Inc. (b) | 40,399 | 1,395,382 | ||||||||
Kohl’s Corp. | 53,136 | 2,657,331 | ||||||||
Macy’s, Inc. | 80,363 | 2,349,814 | ||||||||
Nordstrom, Inc. | 31,439 | 1,475,747 | ||||||||
Sears Holdings Corp. (a)(b) | 8,255 | 589,737 | ||||||||
Target Corp. | 130,088 | 6,102,428 | ||||||||
Wal-Mart Stores, Inc. (b) | 360,251 | 19,143,738 | ||||||||
Total Multiline Retail | 35,408,182 | |||||||||
Specialty Retail—1.9% | ||||||||||
Abercrombie & Fitch Co., Class A | 16,619 | 1,112,143 | ||||||||
AutoNation, Inc. (a)(b) | 12,174 | 445,690 | ||||||||
AutoZone, Inc. (a) | 4,791 | 1,412,626 | ||||||||
Bed Bath & Beyond, Inc. (a) | 47,103 | 2,749,402 | ||||||||
Best Buy Co., Inc. (b) | 60,778 | 1,909,037 | ||||||||
CarMax, Inc. (a) | 42,226 | 1,396,414 | ||||||||
GameStop Corp., Class A (a)(b) | 26,928 | 718,170 | ||||||||
The Gap, Inc. (b) | 74,070 | 1,340,667 | ||||||||
The Home Depot, Inc. | 300,422 | 10,881,285 | ||||||||
Limited Brands, Inc. (b) | 47,748 | 1,835,911 | ||||||||
Lowe’s Cos., Inc. | 245,810 | 5,729,831 |
Appendix | 63 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: S&P 500 Stock Master Portfolio (continued)
June 30, 2011 (Unaudited)
Shares | Value | |||||||||
(Common Stocks continued) | ||||||||||
O’Reilly Automotive, Inc. (a)(b) | 26,107 | $ | 1,710,269 | |||||||
Ross Stores, Inc. | 22,077 | 1,768,809 | ||||||||
The Sherwin-Williams Co. (b) | 16,672 | 1,398,281 | ||||||||
Staples, Inc. | 135,257 | 2,137,061 | ||||||||
The TJX Cos., Inc. | 72,939 | 3,831,486 | ||||||||
Tiffany & Co. | 24,042 | 1,887,778 | ||||||||
Urban Outfitters, Inc. (a)(b) | 23,780 | 669,407 | ||||||||
Total Specialty Retail | 42,934,267 | |||||||||
Textiles, Apparel & Luxury Goods—0.6% | ||||||||||
Coach, Inc. (b) | 55,603 | 3,554,700 | ||||||||
NIKE, Inc., Class B | 71,604 | 6,442,928 | ||||||||
Polo Ralph Lauren Corp. | 12,102 | 1,604,846 | ||||||||
VF Corp. (b) | 16,474 | 1,788,417 | ||||||||
Total Textiles, Apparel, & Luxury Goods | 13,390,891 | |||||||||
Total Consumer Discretionary | 264,141,121 | |||||||||
CONSUMER STAPLES—9.7% | ||||||||||
Beverages—2.5% | ||||||||||
Brown-Forman Corp., Class B (b) | 19,287 | 1,440,546 | ||||||||
The Coca-Cola Co. (b) | 431,608 | 29,042,902 | ||||||||
Coca-Cola Enterprises, Inc. | 61,279 | 1,788,121 | ||||||||
Constellation Brands, Inc. (a) | 33,487 | 697,199 | ||||||||
Dr Pepper Snapple Group, Inc. (b) | 42,092 | 1,764,918 | ||||||||
Molson Coors Brewing Co., Class B (b) | 29,742 | 1,330,657 | ||||||||
PepsiCo, Inc. | 298,186 | 21,001,240 | ||||||||
Total Beverages | 57,065,583 | |||||||||
Food & Staples Retailing—1.5% | ||||||||||
CVS Caremark Corp. (b) | 255,851 | 9,614,881 | ||||||||
Costco Wholesale Corp. | 82,336 | 6,688,977 | ||||||||
The Kroger Co. | 114,635 | 2,842,948 | ||||||||
SUPERVALU, Inc. (b) | 40,825 | 384,163 | ||||||||
Safeway, Inc. | 67,065 | 1,567,309 | ||||||||
Sysco Corp. (b) | 110,194 | 3,435,849 | ||||||||
Walgreen Co. | 172,767 | 7,335,687 | ||||||||
Whole Foods Market, Inc. (b) | 28,110 | 1,783,579 | ||||||||
Total Food & Staples Retailing | 33,653,393 | |||||||||
Food Products—1.6% | ||||||||||
Archer Daniels Midland Co. | 128,811 | 3,883,652 | ||||||||
Campbell Soup Co. (b) | 34,068 | 1,177,049 | ||||||||
ConAgra Foods, Inc. | 77,373 | 1,996,997 | ||||||||
Dean Foods Co. (a) | 35,265 | 432,702 | ||||||||
General Mills, Inc. (b) | 120,299 | 4,477,529 | ||||||||
H.J. Heinz Co. (b) | 60,500 | 3,223,440 | ||||||||
The Hershey Co. | 28,989 | 1,648,025 | ||||||||
Hormel Foods Corp. (b) | 26,295 | 783,854 | ||||||||
The J.M. Smucker Co. | 21,959 | 1,678,546 | ||||||||
Kellogg Co. (b) | 47,360 | 2,619,955 | ||||||||
Kraft Foods, Inc., Class A | 331,374 | 11,674,306 | ||||||||
McCormick & Co., Inc. (b) | 24,837 | 1,231,170 | ||||||||
Sara Lee Corp. | 110,679 | 2,101,794 | ||||||||
Tyson Foods, Inc., Class A | 56,713 | 1,101,366 | ||||||||
Total Food Products | 38,030,385 | |||||||||
Household Products—2.1% | ||||||||||
Colgate-Palmolive Co. | 92,262 | 8,064,621 | ||||||||
The Clorox Co. (b) | 25,242 | 1,702,321 | ||||||||
Kimberly-Clark Corp. | 74,182 | 4,937,554 | ||||||||
The Procter & Gamble Co. | 526,403 | 33,463,439 | ||||||||
Total Household Products | 48,167,935 | |||||||||
Personal Products—0.3% | ||||||||||
Avon Products, Inc. | 80,801 | 2,262,428 | ||||||||
The Estee Lauder Cos., Inc., Class A | 21,529 | 2,264,636 | ||||||||
Mead Johnson Nutrition Co. | 38,464 | 2,598,243 | ||||||||
Total Personal Products | 7,125,307 | |||||||||
Tobacco—1.7% | ||||||||||
Altria Group, Inc. | 394,613 | 10,421,729 | ||||||||
Lorillard, Inc. | 27,158 | 2,956,692 | ||||||||
Philip Morris International, Inc. | 335,429 | 22,396,594 | ||||||||
Reynolds American, Inc. | 63,578 | 2,355,565 | ||||||||
Total Tobacco | 38,130,580 | |||||||||
Total Consumer Staples | 222,173,183 | |||||||||
ENERGY—12.5% | ||||||||||
Energy Equipment & Services—2.3% | ||||||||||
Baker Hughes, Inc. | 81,914 | 5,943,680 | ||||||||
Cameron International Corp. (a) | 46,015 | 2,314,094 | ||||||||
Diamond Offshore Drilling, Inc. (b) | 12,946 | 911,528 | ||||||||
FMC Technologies, Inc. (a)(b) | 45,640 | 2,044,215 | ||||||||
Halliburton Co. | 172,469 | 8,795,919 | ||||||||
Helmerich & Payne, Inc. (b) | 20,246 | 1,338,665 | ||||||||
Nabors Industries Ltd. (a) | 53,690 | 1,322,922 | ||||||||
National Oilwell Varco, Inc. | 79,733 | 6,235,918 | ||||||||
Noble Corp. | 47,431 | 1,869,256 | ||||||||
Rowan Cos., Inc. (a) | 24,090 | 934,933 | ||||||||
Schlumberger Ltd. | 255,800 | 22,101,120 | ||||||||
Total Energy Equipment & Services | 53,812,250 | |||||||||
Oil, Gas & Consumable Fuels—10.2% | ||||||||||
Alpha Natural Resources, Inc. (a) | 42,551 | 1,933,517 | ||||||||
Anadarko Petroleum Corp. | 93,770 | 7,197,785 | ||||||||
Apache Corp. | 72,277 | 8,918,259 | ||||||||
Cabot Oil & Gas Corp. | 19,766 | 1,310,683 | ||||||||
Chesapeake Energy Corp. | 123,621 | 3,670,307 | ||||||||
Chevron Corp. | 379,019 | 38,978,314 | ||||||||
ConocoPhillips | 266,619 | 20,047,083 | ||||||||
CONSOL Energy, Inc. | 42,534 | 2,062,048 | ||||||||
Denbury Resources, Inc. (a) | 75,348 | 1,506,960 | ||||||||
Devon Energy Corp. | 79,847 | 6,292,742 | ||||||||
EOG Resources, Inc. | 50,587 | 5,288,871 | ||||||||
El Paso Corp. | 144,843 | 2,925,829 |
64 | Appendix |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: S&P 500 Stock Master Portfolio (continued)
June 30, 2011 (Unaudited)
Shares | Value | |||||||||
(Common Stocks continued) | ||||||||||
Exxon Mobil Corp. | 928,925 | $ | 75,595,916 | |||||||
Hess Corp. | 56,974 | 4,259,376 | ||||||||
Marathon Oil Corp. | 134,213 | 7,070,341 | ||||||||
Murphy Oil Corp. | 36,573 | 2,401,383 | ||||||||
Newfield Exploration Co. (a) | 24,938 | 1,696,283 | ||||||||
Noble Energy, Inc. | 33,278 | 2,982,707 | ||||||||
Occidental Petroleum Corp. | 153,244 | 15,943,506 | ||||||||
Peabody Energy Corp. | 50,861 | 2,996,222 | ||||||||
Pioneer Natural Resources Co. | 21,894 | 1,961,046 | ||||||||
QEP Resources, Inc. | 32,999 | 1,380,348 | ||||||||
Range Resources Corp. (b) | 30,138 | 1,672,659 | ||||||||
Southwestern Energy Co. (a) | 65,376 | 2,803,323 | ||||||||
Spectra Energy Corp. (b) | 122,686 | 3,362,823 | ||||||||
Sunoco, Inc. | 22,987 | 958,788 | ||||||||
Tesoro Corp. (a)(b) | 27,192 | 622,969 | ||||||||
Valero Energy Corp. | 107,788 | 2,756,139 | ||||||||
The Williams Cos., Inc. | 110,906 | 3,354,907 | ||||||||
Total Oil, Gas, & Consumable Fuels | 231,951,134 | |||||||||
Total Energy | 285,763,384 | |||||||||
FINANCIALS—14.9% | ||||||||||
Capital Markets—2.3% | ||||||||||
Ameriprise Financial, Inc. | 45,805 | 2,642,032 | ||||||||
The Bank of New York Mellon Corp. | 234,183 | 5,999,768 | ||||||||
BlackRock, Inc. (c) | 18,109 | 3,473,487 | ||||||||
The Charles Schwab Corp. (b) | 189,008 | 3,109,182 | ||||||||
E*Trade Financial Corp. (a) | 47,254 | 652,105 | ||||||||
Federated Investors, Inc., Class B (b) | 17,586 | 419,250 | ||||||||
Franklin Resources, Inc. | 27,257 | 3,578,572 | ||||||||
The Goldman Sachs Group, Inc. | 97,672 | 12,999,167 | ||||||||
Invesco Ltd. | 87,425 | 2,045,745 | ||||||||
Janus Capital Group, Inc. | 35,433 | 334,488 | ||||||||
Legg Mason, Inc. | 28,370 | 929,401 | ||||||||
Morgan Stanley | 291,424 | 6,705,666 | ||||||||
Northern Trust Corp. | 45,516 | 2,091,915 | ||||||||
State Street Corp. | 94,973 | 4,282,333 | ||||||||
T Rowe Price Group, Inc. | 49,041 | 2,959,134 | ||||||||
Total Capital Markets | 52,222,245 | |||||||||
Commercial Banks—2.7% | ||||||||||
BB&T Corp. | 131,336 | 3,525,058 | ||||||||
Comerica, Inc. | 33,032 | 1,141,916 | ||||||||
Fifth Third Bancorp | 172,542 | 2,199,910 | ||||||||
First Horizon National Corp. | 50,018 | 477,172 | ||||||||
Huntington Bancshares, Inc. | 161,038 | 1,056,409 | ||||||||
KeyCorp | 178,926 | 1,490,454 | ||||||||
M&T Bank Corp. | 23,630 | 2,078,258 | ||||||||
Marshall & Ilsley Corp. | 100,683 | 802,443 | ||||||||
PNC Financial Services Group, Inc. (b)(c) | 99,186 | 5,912,477 | ||||||||
Regions Financial Corp. | 236,148 | 1,464,118 | ||||||||
SunTrust Banks, Inc. | 101,121 | 2,608,922 | ||||||||
U.S. Bancorp | 363,162 | 9,264,263 | ||||||||
Wells Fargo & Co. | 997,181 | 27,980,899 | ||||||||
Zions BanCorp. (b) | 34,760 | 834,588 | ||||||||
Total Commercial Banks | 60,836,887 | |||||||||
Consumer Finance—0.8% | ||||||||||
American Express Co. | 197,146 | 10,192,448 | ||||||||
Capital One Financial Corp. | 86,510 | 4,469,972 | ||||||||
Discover Financial Services | 102,507 | 2,742,062 | ||||||||
SLM Corp. | 98,757 | 1,660,105 | ||||||||
Total Consumer Finance | 19,064,587 | |||||||||
Diversified Financial Services—3.7% | ||||||||||
Bank of America Corp. | 1,910,353 | 20,937,469 | ||||||||
CME Group, Inc. | 12,598 | 3,673,451 | ||||||||
Citigroup, Inc. | 550,627 | 22,928,108 | ||||||||
IntercontinentalExchange, Inc. (a) | 13,771 | 1,717,381 | ||||||||
JPMorgan Chase & Co. | 749,190 | 30,671,839 | ||||||||
Leucadia National Corp. (b) | 37,065 | 1,263,916 | ||||||||
Moody’s Corp. (b) | 37,418 | 1,434,980 | ||||||||
The NASDAQ OMX Group, Inc. (a) | 28,443 | 719,608 | ||||||||
NYSE Euronext | 49,106 | 1,682,863 | ||||||||
Total Diversified Financial Services | 85,029,615 | |||||||||
Insurance—3.7% | ||||||||||
ACE Ltd. | 63,575 | 4,184,506 | ||||||||
Aon Corp. | 62,616 | 3,212,201 | ||||||||
Aflac, Inc. | 88,387 | 4,125,905 | ||||||||
The Allstate Corp. (b) | 98,836 | 3,017,463 | ||||||||
American International Group, Inc. (a) | 82,331 | 2,413,945 | ||||||||
Assurant, Inc. | 18,391 | 667,042 | ||||||||
Berkshire Hathaway, Inc., Class B (a) | 326,401 | 25,260,173 | ||||||||
Chubb Corp. | 55,177 | 3,454,632 | ||||||||
Cincinnati Financial Corp. (b) | 30,959 | 903,384 | ||||||||
Genworth Financial, Inc., Class A (a) | 91,567 | 941,309 | ||||||||
Hartford Financial Services Group, Inc. | 83,612 | 2,204,848 | ||||||||
Lincoln National Corp. | 59,326 | 1,690,198 | ||||||||
Loews Corp. | 58,612 | 2,466,979 | ||||||||
Marsh & McLennan Cos., Inc. (b) | 103,185 | 3,218,340 | ||||||||
MetLife, Inc. | 199,239 | 8,740,615 | ||||||||
Principal Financial Group, Inc. (b) | 60,304 | 1,834,448 | ||||||||
The Progressive Corp. | 123,087 | 2,631,600 | ||||||||
Prudential Financial, Inc. (b) | 91,966 | 5,848,118 | ||||||||
Torchmark Corp. | 14,411 | 924,322 | ||||||||
The Travelers Cos., Inc. | 79,098 | 4,617,741 | ||||||||
Unum Group | 58,007 | 1,478,018 | ||||||||
XL Group Plc | 58,266 | 1,280,687 | ||||||||
Total Insurance | 85,116,474 | |||||||||
Appendix | 65 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: S&P 500 Stock Master Portfolio (continued)
June 30, 2011 (Unaudited)
Shares | Value | |||||||||
(Common Stocks continued) | ||||||||||
Real Estate Investment Trusts (REITs)—1.5% | ||||||||||
Apartment Investment & Management Co. | 22,435 | $ | 572,766 | |||||||
AvalonBay Communities, Inc. | 16,442 | 2,111,153 | ||||||||
Boston Properties, Inc. | 27,425 | 2,911,438 | ||||||||
Equity Residential | 55,605 | 3,336,300 | ||||||||
HCP, Inc. | 76,481 | 2,806,088 | ||||||||
Health Care REIT, Inc. | 33,458 | 1,754,203 | ||||||||
Host Hotels & Resorts, Inc. (b) | 129,201 | 2,189,957 | ||||||||
Kimco Realty Corp. | 76,077 | 1,418,075 | ||||||||
Plum Creek Timber Co., Inc. (b) | 30,282 | 1,227,632 | ||||||||
ProLogis, Inc. | 79,648 | 2,854,584 | ||||||||
Public Storage | 26,274 | 2,995,499 | ||||||||
Simon Property Group, Inc. | 55,364 | 6,434,958 | ||||||||
Ventas, Inc. (b) | 30,575 | 1,611,608 | ||||||||
Vornado Realty Trust | 30,949 | 2,883,828 | ||||||||
Total Real Estate Investment Trusts (REITs) | 35,108,089 | |||||||||
Real Estate Management & Development—0.1% | ||||||||||
CB Richard Ellis Group, Inc., Class A (a) | 54,589 | 1,370,730 | ||||||||
Total Real Estate Management & Development | 1,370,730 | |||||||||
Thrifts & Mortgage Finance—0.1% | ||||||||||
Hudson City Bancorp, Inc. | 100,039 | 819,319 | ||||||||
People’s United Financial, Inc. (b) | 68,692 | 923,221 | ||||||||
Total Thrifts & Mortgage Finance | 1,742,540 | |||||||||
Total Financials | 340,491,167 | |||||||||
HEALTH CARE—11.5% | ||||||||||
Biotechnology—1.2% | ||||||||||
Amgen, Inc. (a) | 175,263 | 10,226,596 | ||||||||
Biogen Idec, Inc. (a) | 45,531 | 4,868,175 | ||||||||
Celgene Corp. (a) | 87,388 | 5,271,244 | ||||||||
Cephalon, Inc. (a) | 14,469 | 1,156,073 | ||||||||
Gilead Sciences, Inc. (a) | 148,574 | 6,152,449 | ||||||||
Total Biotechnology | 27,674,537 | |||||||||
Health Care Equipment & Supplies—2.0% | ||||||||||
Baxter International, Inc. | 107,665 | 6,426,524 | ||||||||
Becton Dickinson & Co. | 41,327 | 3,561,148 | ||||||||
Boston Scientific Corp. (a) | 286,412 | 1,979,107 | ||||||||
C.R. Bard, Inc. (b) | 16,139 | 1,773,031 | ||||||||
CareFusion Corp. (a) | 41,661 | 1,131,929 | ||||||||
Covidien PLC | 93,418 | 4,972,640 | ||||||||
DENTSPLY International, Inc. (b) | 26,998 | 1,028,084 | ||||||||
Edwards Lifesciences Corp. (a) | 21,561 | 1,879,688 | ||||||||
Hospira, Inc. (a) | 31,665 | 1,794,139 | ||||||||
Intuitive Surgical, Inc. (a) | 7,400 | 2,753,614 | ||||||||
Medtronic, Inc. (b) | 201,562 | 7,766,184 | ||||||||
St. Jude Medical, Inc. | 61,947 | 2,953,633 | ||||||||
Stryker Corp. | 62,905 | 3,691,894 | ||||||||
Varian Medical Systems, Inc. (a) | 22,200 | 1,554,444 | ||||||||
Zimmer Holdings, Inc. (a) | 36,121 | 2,282,847 | ||||||||
Total Health Care Equipment & Supplies | 45,548,906 | |||||||||
Health Care Providers & Services—2.2% | ||||||||||
Aetna, Inc. | 71,713 | 3,161,826 | ||||||||
AmerisourceBergen Corp. (b) | 51,533 | 2,133,466 | ||||||||
CIGNA Corp. (b) | 50,994 | 2,622,621 | ||||||||
Cardinal Health, Inc. | 66,212 | 3,007,349 | ||||||||
Coventry Health Care, Inc. (a) | 27,865 | 1,016,237 | ||||||||
DaVita, Inc. (a) | 18,023 | 1,560,972 | ||||||||
Express Scripts, Inc. (a)(b) | 99,780 | 5,386,124 | ||||||||
Humana, Inc. (b) | 31,688 | 2,552,152 | ||||||||
Laboratory Corp. of America Holdings (a)(b) | 18,961 | 1,835,235 | ||||||||
McKesson Corp. (b) | 47,554 | 3,977,892 | ||||||||
Medco Health Solutions, Inc. (a) | 75,506 | 4,267,599 | ||||||||
Patterson Cos., Inc. (b) | 18,026 | 592,875 | ||||||||
Quest Diagnostics, Inc. (b) | 29,622 | 1,750,660 | ||||||||
Tenet Healthcare Corp. (a) | 90,436 | 564,321 | ||||||||
UnitedHealth Group, Inc. | 204,424 | 10,544,190 | ||||||||
WellPoint, Inc. | 69,319 | 5,460,258 | ||||||||
Total Health Care Providers & Services | 50,433,777 | |||||||||
Health Care Technology—0.1% | ||||||||||
Cerner Corp. (a)(b) | 27,228 | 1,663,903 | ||||||||
Total Health Care Technology | 1,663,903 | |||||||||
Life Sciences Tools & Services—0.4% | ||||||||||
Life Technologies Corp. (a) | 33,814 | 1,760,695 | ||||||||
PerkinElmer, Inc. | 21,536 | 579,534 | ||||||||
Thermo Fisher Scientific, Inc. (a) | 72,377 | 4,660,355 | ||||||||
Waters Corp. (a) | 17,337 | 1,659,844 | ||||||||
Total Life Sciences Tools & Services | 8,660,428 | |||||||||
Pharmaceuticals—5.6% | ||||||||||
Abbott Laboratories | 293,013 | 15,418,344 | ||||||||
Allergan, Inc. | 57,461 | 4,783,628 | ||||||||
Bristol-Myers Squibb Co. | 321,569 | 9,312,638 | ||||||||
Eli Lilly & Co. | 192,027 | 7,206,774 | ||||||||
Forest Laboratories, Inc. (a) | 53,729 | 2,113,699 | ||||||||
Johnson & Johnson | 516,814 | 34,378,467 | ||||||||
Merck & Co., Inc. | 581,911 | 20,535,639 | ||||||||
Mylan, Inc. (a) | 83,055 | 2,048,967 | ||||||||
Pfizer, Inc. | 1,490,134 | 30,696,761 | ||||||||
Watson Pharmaceuticals, Inc. (a) | 23,859 | 1,639,829 | ||||||||
Total Pharmaceuticals | 128,134,746 | |||||||||
Total Health Care | 262,116,297 | |||||||||
66 | Appendix |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: S&P 500 Stock Master Portfolio (continued)
June 30, 2011 (Unaudited)
Shares | Value | |||||||||
(Common Stocks continued) | ||||||||||
INDUSTRIALS—11.2% | ||||||||||
Aerospace & Defense—2.8% | ||||||||||
The Boeing Co. | 139,167 | $ | 10,288,616 | |||||||
General Dynamics Corp. | 70,058 | 5,220,722 | ||||||||
Goodrich Corp. | 23,616 | 2,255,328 | ||||||||
Honeywell International, Inc. | 148,344 | 8,839,819 | ||||||||
ITT Corp. (b) | 34,538 | 2,035,324 | ||||||||
L-3 Communications Holdings, Inc. (b) | 20,094 | 1,757,220 | ||||||||
Lockheed Martin Corp. (b) | 53,676 | 4,346,146 | ||||||||
Northrop Grumman Corp. (b) | 55,150 | 3,824,653 | ||||||||
Precision Castparts Corp. | 27,110 | 4,463,661 | ||||||||
Raytheon Co. (b) | 67,203 | 3,350,070 | ||||||||
Rockwell Collins, Inc. | 29,159 | 1,798,819 | ||||||||
United Technologies Corp. (b) | 172,658 | 15,281,960 | ||||||||
Total Aerospace & Defense | 63,462,338 | |||||||||
Air Freight & Logistics—1.0% | ||||||||||
C.H. Robinson Worldwide, Inc. | 30,819 | 2,429,770 | ||||||||
Expeditors International of Washington, Inc. (b) | 39,896 | 2,042,276 | ||||||||
FedEx Corp. | 59,486 | 5,642,247 | ||||||||
United Parcel Service, Inc., Class B (b) | 185,915 | 13,558,781 | ||||||||
Total Air Freight & Logistics | 23,673,074 | |||||||||
Airlines—0.1% | ||||||||||
Southwest Airlines Co. (b) | 149,012 | 1,701,717 | ||||||||
Total Airlines | 1,701,717 | |||||||||
Building Products—0.0% | ||||||||||
Masco Corp. (b) | 68,016 | 818,232 | ||||||||
Total Building Products | 818,232 | |||||||||
Commercial Services & Supplies—0.5% | ||||||||||
Avery Dennison Corp. | 19,911 | 769,162 | ||||||||
Cintas Corp. (b) | 24,008 | 792,984 | ||||||||
Iron Mountain, Inc. (b) | 38,012 | 1,295,829 | ||||||||
Pitney Bowes, Inc. (b) | 38,705 | 889,828 | ||||||||
R.R. Donnelley & Sons Co. (b) | 35,717 | 700,411 | ||||||||
Republic Services, Inc. (b) | 57,693 | 1,779,829 | ||||||||
Stericycle, Inc. (a) | 16,234 | 1,446,774 | ||||||||
Waste Management, Inc. (b) | 89,385 | 3,331,379 | ||||||||
Total Commercial Services & Supplies | 11,006,196 | |||||||||
Construction & Engineering—0.2% | ||||||||||
Fluor Corp. | 32,866 | 2,125,116 | ||||||||
Jacobs Engineering Group, Inc. (a)(b) | 23,616 | 1,021,392 | ||||||||
Quanta Services, Inc. (a) | 40,932 | 826,826 | ||||||||
Total Construction & Engineering | 3,973,334 | |||||||||
Electrical Equipment—0.6% | ||||||||||
Emerson Electric Co. (b) | 141,744 | 7,973,100 | ||||||||
First Solar, Inc. (a)(b) | 10,154 | 1,343,070 | ||||||||
Rockwell Automation, Inc. (b) | 27,174 | 2,357,616 | ||||||||
Roper Industries, Inc. | 18,135 | 1,510,645 | ||||||||
Total Electrical Equipment | 13,184,431 | |||||||||
Industrial Conglomerates—2.4% | ||||||||||
3M Co. | 134,007 | 12,710,564 | ||||||||
General Electric Co. | 1,999,558 | 37,711,664 | ||||||||
Textron, Inc. (b) | 51,697 | 1,220,566 | ||||||||
Tyco International Ltd. | 88,567 | 4,377,867 | ||||||||
Total Industrial Conglomerates | 56,020,661 | |||||||||
Machinery—2.4% | ||||||||||
Caterpillar, Inc. (b) | 121,485 | 12,933,293 | ||||||||
Cummins, Inc. | 36,976 | 3,826,646 | ||||||||
Danaher Corp. | 102,618 | 5,437,728 | ||||||||
Deere & Co. (b) | 79,140 | 6,525,093 | ||||||||
Dover Corp. (b) | 35,071 | 2,377,814 | ||||||||
Eaton Corp. (b) | 64,419 | 3,314,358 | ||||||||
Flowserve Corp. | 10,433 | 1,146,482 | ||||||||
Illinois Tool Works, Inc. (b) | 94,235 | 5,323,335 | ||||||||
Ingersoll-Rand Plc | 62,417 | 2,834,356 | ||||||||
Joy Global, Inc. | 19,702 | 1,876,418 | ||||||||
PACCAR, Inc. (b) | 68,676 | 3,508,657 | ||||||||
Pall Corp. | 21,965 | 1,235,092 | ||||||||
Parker Hannifin Corp. | 30,433 | 2,731,057 | ||||||||
Snap-on, Inc. (b) | 11,070 | 691,654 | ||||||||
Total Machinery | 53,761,983 | |||||||||
Professional Services—0.1% | ||||||||||
Dun & Bradstreet Corp. | 9,465 | 714,986 | ||||||||
Equifax, Inc. | 23,312 | 809,393 | ||||||||
Monster Worldwide, Inc. (a) | 24,861 | 364,462 | ||||||||
Robert Half International, Inc. (b) | 27,200 | 735,216 | ||||||||
Total Professional Services | 2,624,057 | |||||||||
Road & Rail—0.9% | ||||||||||
CSX Corp. | 208,860 | 5,476,309 | ||||||||
Norfolk Southern Corp. | 66,655 | 4,994,459 | ||||||||
Ryder System, Inc. | 9,748 | 554,174 | ||||||||
Union Pacific Corp. | 92,492 | 9,656,165 | ||||||||
Total Road & Rail | 20,681,107 | |||||||||
Trading Companies & Distributors—0.2% | ||||||||||
Fastenal Co. (b) | 55,398 | 1,993,774 | ||||||||
W.W. Grainger, Inc. (b) | 10,938 | 1,680,624 | ||||||||
Total Trading Companies & Distributors | 3,674,398 | |||||||||
Total Industrials | 254,581,528 | |||||||||
INFORMATION TECHNOLOGY—17.8% | ||||||||||
Communications Equipment—2.0% | ||||||||||
Cisco Systems, Inc. | 1,037,538 | 16,195,968 | ||||||||
F5 Networks, Inc. (a) | 15,323 | 1,689,361 | ||||||||
Harris Corp. (b) | 23,899 | 1,076,889 | ||||||||
JDS Uniphase Corp. (a) | 42,587 | 709,499 | ||||||||
Juniper Networks, Inc. (a) | 100,554 | 3,167,451 |
Appendix | 67 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: S&P 500 Stock Master Portfolio (continued)
June 30, 2011 (Unaudited)
Shares | Value | |||||||||
(Common Stocks continued) | ||||||||||
Motorola Mobility Holdings, Inc. (a) | 55,893 | $ | 1,231,882 | |||||||
Motorola Solutions, Inc. (a) | 63,957 | 2,944,580 | ||||||||
QUALCOMM, Inc. | 314,745 | 17,874,369 | ||||||||
Tellabs, Inc. | 68,814 | 317,232 | ||||||||
Total Communications Equipment | 45,207,231 | |||||||||
Computers & Peripherals—6.0% | ||||||||||
Apple, Inc. (a) | 174,359 | 58,527,085 | ||||||||
Dell, Inc. (a) | 309,999 | 5,167,683 | ||||||||
EMC Corp. (a)(b) | 388,041 | 10,690,530 | ||||||||
Hewlett-Packard Co. | 391,287 | 14,242,847 | ||||||||
International Business Machines Corp. | 228,420 | 39,185,451 | ||||||||
Lexmark International, Inc., Class A (a) | 14,930 | 436,852 | ||||||||
NetApp, Inc. (a) | 69,155 | 3,650,001 | ||||||||
SanDisk Corp. (a) | 44,977 | 1,866,545 | ||||||||
Teradata Corp. (a) | 31,916 | 1,921,343 | ||||||||
Western Digital Corp. (a) | 43,478 | 1,581,730 | ||||||||
Total Computers & Peripherals | 137,270,067 | |||||||||
Electronic Equipment, Instruments & Components—0.6% | ||||||||||
Agilent Technologies, Inc. (a) | 65,565 | 3,351,027 | ||||||||
Amphenol Corp., Class A | 33,035 | 1,783,560 | ||||||||
Corning, Inc. | 295,854 | 5,369,750 | ||||||||
FLIR Systems, Inc. | 29,723 | 1,001,962 | ||||||||
Jabil Circuit, Inc. (b) | 37,239 | 752,228 | ||||||||
Molex, Inc. (b) | 26,235 | 676,076 | ||||||||
Total Electronic Equipment, Instruments, & Components | 12,934,603 | |||||||||
Internet Software & Services—1.6% | ||||||||||
Akamai Technologies, Inc. (a) | 35,014 | 1,101,890 | ||||||||
eBay, Inc. (a) | 215,466 | 6,953,088 | ||||||||
Google, Inc., Class A (a) | 47,389 | 23,996,842 | ||||||||
VeriSign, Inc. | 31,784 | 1,063,493 | ||||||||
Yahoo!, Inc. (a) | 246,141 | 3,701,961 | ||||||||
Total Internet Software & Services | 36,817,274 | |||||||||
IT Services—1.4% | ||||||||||
Automatic Data Processing, Inc. | 94,167 | 4,960,718 | ||||||||
Cognizant Technology Solutions Corp., Class A (a) | 57,185 | 4,193,948 | ||||||||
Computer Sciences Corp. | 29,051 | 1,102,776 | ||||||||
Fidelity National Information Services, Inc. | 50,646 | 1,559,390 | ||||||||
Fiserv, Inc. (a) | 27,076 | 1,695,770 | ||||||||
MasterCard, Inc., Class A | 17,780 | 5,357,825 | ||||||||
Paychex, Inc. (b) | 60,512 | 1,858,929 | ||||||||
SAIC, Inc. (a)(b) | 53,029 | 891,948 | ||||||||
Total System Services, Inc. (b) | 30,855 | 573,286 | ||||||||
Visa, Inc., Class A (b) | 90,406 | 7,617,609 | ||||||||
The Western Union Co. | 119,561 | 2,394,807 | ||||||||
Total IT Services | 32,207,006 | |||||||||
Office Electronics—0.1% | ||||||||||
Xerox Corp. (b) | 263,086 | 2,738,725 | ||||||||
Total Office Electronics | 2,738,725 | |||||||||
Semiconductors & Semiconductor Equipment—2.4% | ||||||||||
Advanced Micro Devices, Inc. (a)(b) | 109,321 | 764,154 | ||||||||
Altera Corp. | 60,690 | 2,812,981 | ||||||||
Analog Devices, Inc. | 56,329 | 2,204,717 | ||||||||
Applied Materials, Inc. | 248,024 | 3,226,792 | ||||||||
Broadcom Corp., Class A (a) | 90,030 | 3,028,609 | ||||||||
Intel Corp. | 1,000,036 | 22,160,798 | ||||||||
KLA-Tencor Corp. | 31,333 | 1,268,360 | ||||||||
LSI Corp. (a) | 114,032 | 811,908 | ||||||||
Linear Technology Corp. | 43,125 | 1,423,987 | ||||||||
MEMC Electronic Materials, Inc. (a) | 43,740 | 373,102 | ||||||||
Microchip Technology, Inc. (b) | 35,836 | 1,358,543 | ||||||||
Micron Technology, Inc. (a) | 161,132 | 1,205,267 | ||||||||
NVIDIA Corp. (a) | 113,010 | 1,800,814 | ||||||||
National Semiconductor Corp. | 45,798 | 1,127,089 | ||||||||
Novellus Systems, Inc. (a)(b) | 17,128 | 619,006 | ||||||||
Teradyne, Inc. (a)(b) | 35,201 | 520,975 | ||||||||
Texas Instruments, Inc. | 219,160 | 7,195,023 | ||||||||
Xilinx, Inc. (b) | 49,999 | 1,823,464 | ||||||||
Total Semiconductors & Semiconductor Equipment | 53,725,589 | |||||||||
Software—3.7% | ||||||||||
Adobe Systems, Inc. (a) | 95,143 | 2,992,247 | ||||||||
Autodesk, Inc. (a) | 43,569 | 1,681,764 | ||||||||
BMC Software, Inc. (a) | 33,532 | 1,834,201 | ||||||||
CA, Inc. | 71,829 | 1,640,574 | ||||||||
Citrix Systems, Inc. (a) | 35,536 | 2,842,880 | ||||||||
Compuware Corp. (a) | 41,170 | 401,819 | ||||||||
Electronic Arts, Inc. (a) | 62,483 | 1,474,599 | ||||||||
Intuit, Inc. (a) | 51,603 | 2,676,132 | ||||||||
Microsoft Corp. (b) | 1,399,118 | 36,377,068 | ||||||||
Oracle Corp. | 734,631 | 24,176,706 | ||||||||
Red Hat, Inc. (a) | 36,218 | 1,662,406 | ||||||||
Salesforce.com, Inc. (a) | 22,702 | 3,382,144 | ||||||||
Symantec Corp. (a) | 142,414 | 2,808,404 | ||||||||
Total Software | 83,950,944 | |||||||||
Total Information Technology | 404,851,439 | |||||||||
MATERIALS—3.7% | ||||||||||
Chemicals—2.1% | ||||||||||
Air Products & Chemicals, Inc. | 40,029 | 3,825,972 | ||||||||
Airgas, Inc. | 13,276 | 929,851 | ||||||||
CF Industries Holdings, Inc. | 13,399 | 1,898,236 | ||||||||
The Dow Chemical Co. (b) | 221,579 | 7,976,844 | ||||||||
E.I. du Pont de Nemours & Co. (b) | 175,055 | 9,461,723 | ||||||||
Eastman Chemical Co. | 13,266 | 1,354,061 | ||||||||
Ecolab, Inc. (b) | 43,743 | 2,466,230 |
68 | Appendix |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: S&P 500 Stock Master Portfolio (continued)
June 30, 2011 (Unaudited)
Shares | Value | |||||||||
(Common Stocks continued) | ||||||||||
FMC Corp. (b) | 13,410 | $ | 1,153,528 | |||||||
International Flavors & Fragrances, Inc. (b) | 15,243 | 979,210 | ||||||||
Monsanto Co. | 100,880 | 7,317,835 | ||||||||
PPG Industries, Inc. | 29,901 | 2,714,712 | ||||||||
Praxair, Inc. (b) | 57,306 | 6,211,397 | ||||||||
Sigma-Aldrich Corp. | 22,847 | 1,676,513 | ||||||||
Total Chemicals | 47,966,112 | |||||||||
Construction Materials—0.0% | ||||||||||
Vulcan Materials Co. (b) | 24,079 | 927,764 | ||||||||
Total Construction Materials | 927,764 | |||||||||
Containers & Packaging—0.2% | ||||||||||
Ball Corp. (b) | 31,578 | 1,214,490 | ||||||||
Bemis Co., Inc. (b) | 20,352 | 687,491 | ||||||||
Owens-Illinois, Inc. (a) | 31,095 | 802,562 | ||||||||
Sealed Air Corp. | 30,256 | 719,790 | ||||||||
Total Containers & Packaging | 3,424,333 | |||||||||
Metals & Mining—1.1% | ||||||||||
AK Steel Holding Corp. (b) | 20,937 | 329,967 | ||||||||
Alcoa, Inc. | 199,770 | 3,168,352 | ||||||||
Allegheny Technologies, Inc. | 19,962 | 1,266,988 | ||||||||
Cliffs Natural Resources, Inc. (b) | 27,240 | 2,518,338 | ||||||||
Freeport-McMoRan Copper & Gold, Inc. | 178,562 | 9,445,930 | ||||||||
Newmont Mining Corp. | 93,108 | 5,025,039 | ||||||||
Nucor Corp. (b) | 59,388 | 2,447,973 | ||||||||
Titanium Metals Corp. | 17,365 | 318,127 | ||||||||
United States Steel Corp. (b) | 26,935 | 1,240,087 | ||||||||
Total Metals & Mining | 25,760,801 | |||||||||
Paper & Forest Products—0.3% | ||||||||||
International Paper Co. (b) | 82,671 | 2,465,249 | ||||||||
MeadWestvaco Corp. | 31,978 | 1,065,187 | ||||||||
Weyerhaeuser Co. | 100,991 | 2,207,664 | ||||||||
Total Paper & Forest Products | 5,738,100 | |||||||||
Total Materials | 83,817,110 | |||||||||
TELECOMMUNICATION SERVICES—3.1% | ||||||||||
Diversified Telecommunication Services—2.7% | ||||||||||
AT&T, Inc. (b) | 1,116,531 | 35,070,239 | ||||||||
CenturyLink, Inc. | 113,126 | 4,573,684 | ||||||||
Frontier Communications Corp. (b) | 186,283 | 1,503,304 | ||||||||
Verizon Communications, Inc. (b) | 533,357 | 19,856,881 | ||||||||
Windstream Corp. (b) | 95,937 | 1,243,343 | ||||||||
Total Diversified Telecommunication Services | 62,247,451 | |||||||||
Wireless Telecommunication Services—0.4% | ||||||||||
American Tower Corp., Class A (a) | 74,744 | 3,911,353 | ||||||||
MetroPCS Communications, Inc. (a) | 50,122 | 862,600 | ||||||||
Sprint Nextel Corp. (a) | 562,179 | 3,030,145 | ||||||||
Total Wireless Telecommunication Services | 7,804,098 | |||||||||
Total Telecommunication Services | 70,051,549 | |||||||||
UTILITIES—3.4% | ||||||||||
Electric Utilities—1.8% | ||||||||||
American Electric Power Co., Inc. | 90,922 | 3,425,941 | ||||||||
Duke Energy Corp. | 250,917 | 4,724,767 | ||||||||
Edison International (b) | 61,255 | 2,373,631 | ||||||||
Entergy Corp. (b) | 33,661 | 2,298,373 | ||||||||
Exelon Corp. | 124,894 | 5,350,459 | ||||||||
FirstEnergy Corp. | 78,620 | 3,471,073 | ||||||||
NextEra Energy, Inc. | 79,512 | 4,568,760 | ||||||||
Northeast Utilities (b) | 33,534 | 1,179,391 | ||||||||
PPL Corp. | 108,720 | 3,025,678 | ||||||||
Pepco Holdings, Inc. (b) | 42,749 | 839,163 | ||||||||
Pinnacle West Capital Corp. | 20,661 | 921,067 | ||||||||
Progress Energy, Inc. | 55,606 | 2,669,644 | ||||||||
Southern Co. | 160,035 | 6,462,213 | ||||||||
Total Electric Utilities | 41,310,160 | |||||||||
Gas Utilities—0.1% | ||||||||||
EQT Corp. | 27,934 | 1,467,094 | ||||||||
Nicor, Inc. | 8,697 | 476,074 | ||||||||
Oneok, Inc. | 20,030 | 1,482,420 | ||||||||
Total Gas Utilities | 3,425,588 | |||||||||
Independent Power Producers & Energy Traders—0.2% | ||||||||||
The AES Corp. (a) | 124,234 | 1,582,741 | ||||||||
Constellation Energy Group, Inc. | 37,868 | 1,437,469 | ||||||||
NRG Energy, Inc. (a) | 45,753 | 1,124,609 | ||||||||
Total Independent Power Producers & Energy Traders | 4,144,819 | |||||||||
Multi-Utilities—1.3% | ||||||||||
Ameren Corp. | 45,689 | 1,317,671 | ||||||||
CMS Energy Corp. | 47,889 | 942,934 | ||||||||
Centerpoint Energy, Inc. | 79,566 | 1,539,602 | ||||||||
Consolidated Edison, Inc. (b) | 55,270 | 2,942,575 | ||||||||
DTE Energy Co. | 31,778 | 1,589,536 | ||||||||
Dominion Resources, Inc. (b) | 108,713 | 5,247,576 | ||||||||
Integrys Energy Group, Inc. | 14,816 | 768,061 | ||||||||
NiSource, Inc. (b) | 53,050 | 1,074,262 | ||||||||
PG&E Corp. | 74,969 | 3,150,947 | ||||||||
Public Service Enterprise Group, Inc. | 95,131 | 3,105,076 | ||||||||
SCANA Corp. (b) | 21,616 | 851,022 | ||||||||
Sempra Energy | 45,216 | 2,391,022 | ||||||||
TECO Energy, Inc. (b) | 40,813 | 770,958 |
Appendix | 69 |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: S&P 500 Stock Master Portfolio (continued)
June 30, 2011 (Unaudited)
Shares | Value | |||||||||
(Common Stocks continued) | ||||||||||
Wisconsin Energy Corp. (b) | 43,748 | $ | 1,371,500 | |||||||
Xcel Energy, Inc. (b) | 91,573 | 2,225,224 | ||||||||
Total Multi-Utilities | 29,287,966 | |||||||||
Total Utilities | 78,168,533 | |||||||||
Total Long-Term Investments (Cost $1,834,148,007) | 2,266,155,311 | |||||||||
SHORT-TERM SECURITIES | ||||||||||
(8.5% of net assets) | ||||||||||
MONEY MARKET FUNDS—8.5% | ||||||||||
BlackRock Cash Funds: | ||||||||||
Institutional, SL Agency Shares, 0.16% (c)(d)(e) | 169,237,280 | 169,237,280 | ||||||||
Prime, SL Agency Shares, 0.17% (c)(d)(e) | 23,887,779 | 23,887,779 | ||||||||
Total Money Market Funds | 193,125,059 | |||||||||
Par | ||||||||||
(000) | ||||||||||
U.S. TREASURY OBLIGATIONS—0.0% | ||||||||||
U.S. Treasury Bill, 0.02%, 9/21/11 (f)(g) | $ | 900 | 899,948 | |||||||
Total U.S. Treasury Obligations | 899,948 | |||||||||
Total Short-Term Securities (Cost $194,025,028) | 194,025,007 | |||||||||
TOTAL INVESTMENTS BEFORE SHORT POSITIONS (Cost $2,028,173,035*) — 108.0% | 2,460,180,318 | |||||||||
Shares | Value | |||||||||
SHORT POSITIONS (h) — 0.0% | ||||||||||
AMC Networks, Inc., Class A (a) | 10,899 | $ | (474,107 | ) | ||||||
Total Short Positions (Proceeds Received — $474,070) | (474,107 | ) | ||||||||
Total Investments Net of Short Positions — 108.0% | 2,459,706,211 | |||||||||
LIABILITIES IN EXCESS OF OTHER ASSETS — (8.0)% | (181,071,541 | ) | ||||||||
NET ASSETS — 100% | $ | 2,278,634,670 | ||||||||
* | The cost and unrealized appreciation (depreciation) of investments before short positions as of June 30, 2011, as computed for federal income tax purposes, were as follows: |
Aggregate cost | $ | 2,093,183,788 | ||
Gross unrealized appreciation | $ | 628,022,599 | ||
Gross unrealized depreciation | (261,026,069 | ) | ||
Net unrealized appreciation | $ | 366,996,530 | ||
(a) | Non-income producing security. | |
(b) | Security, or a portion of security, is on loan. | |
(c) | Investments in companies considered to be an affiliate of the Master Portfolio, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: |
Shares Held at | Shares | Shares | Shares Held at | Value at | Realized | |||||||||||||||||||||||
Affiliate | December 31, 2010 | Purchased | Sold | June 30, 2011 | June 30, 2011 | Loss | Income | |||||||||||||||||||||
BlackRock Cash Funds: Institutional, SL Agency Shares | 350,818,795 | — | (181,581,515 | )1 | 169,237,280 | $ | 169,237,280 | $ | — | $ | 343,386 | |||||||||||||||||
BlackRock Cash Funds: Prime, SL Agency Shares | 53,051,433 | — | (29,163,654 | )1 | 23,887,779 | $ | 23,887,779 | $ | — | $ | 46,513 | |||||||||||||||||
BlackRock Inc | — | 18,294 | (185 | ) | 18,109 | $ | 3,473,487 | $ | (339 | ) | $ | 24,710 | ||||||||||||||||
PNC Financial Services Group, Inc | 98,114 | 2,110 | (1,038 | ) | 99,186 | $ | 5,912,477 | $ | (10,502 | ) | $ | 44,384 | ||||||||||||||||
1 | Represents net activity | |
(d) | Represents the current yield as of report date. | |
(e) | All or a portion of this security was purchased with the cash collateral from securities loaned. | |
(f) | All or a portion of this security has been pledged as collateral in connection with open financial futures contracts. | |
(g) | Rate shown is the yield to maturity as of the date of purchase. | |
(h) | In order to track the performance of its benchmark index, the Master Portfolio sold non-index securities that it subsequently received in corporate actions occurring on the opening of market trading on the following business day. |
• | For Master Portfolio compliance purposes, the Master Portfolio’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Master Portfolio management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. |
• | Financial futures contracts purchased as of June 30, 2011 were as follows: |
Unrealized | ||||||||||
Contracts | Issue | Exchange | Expiration | Notional Value | Appreciation | |||||
191 | S&P 500 Index | Chicago | September 2011 | $12,563,025 | $324,595 | |||||
70 | Appendix |
The accompanying notes are an integral part of these financial statements.
PORTFOLIO OF INVESTMENTS: S&P 500 Stock Master Portfolio (continued)
June 30, 2011 (Unaudited)
• | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized in three broad levels for financial statement purposes as follows: |
• | Level 1 — price quotations in active markets/exchanges for identical assets and liabilities | |
• | Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) | |
• | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Master Portfolio’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instruments and does not necessarily correspond to the Master Portfolio’s perceived risk investing in those securities.
For information about the Master Portfolio’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of June 30, 2011 in determining the fair valuation of the Master Portfolio’s investments and derivative financial instruments:
VALUATION INPUTS | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Investments: | ||||||||||||||||
Long-Term Investments1: | ||||||||||||||||
Common Stocks | $ | 2,266,155,311 | $ | — | $ | — | $ | 2,266,155,311 | ||||||||
Short-Term Securities: | ||||||||||||||||
Money Market Funds | 193,125,059 | — | — | 193,125,059 | ||||||||||||
U.S. Government Obligations | — | 899,948 | — | 899,948 | ||||||||||||
Liabilities: | ||||||||||||||||
Investments: | ||||||||||||||||
Investments Sold Short: | (474,107 | ) | — | — | (474,107 | ) | ||||||||||
Total | $ | 2,458,806,263 | $ | 899,948 | $ | — | $ | 2,459,706,211 | ||||||||
Derivative Financial Instruments2 | ||||||||||||||||
VALUATION INPUTS | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets: | ||||||||||||||||
Equity contracts | $ | 324,595 | — | — | $ | 324,595 | ||||||||||
1 | See above Schedule of Investments for values in each sector and industry. | |
2 | Derivative financial instruments are financial future contracts. Financial futures contracts are valued at the unrealized appreciation/depreciation on the instrument. |
Appendix | 71 |
The accompanying notes are an integral part of these financial statements.
STATEMENT OF ASSETS AND LIABILITIES: S&P 500 Stock Master Portfolio
June 30, 2011 (Unaudited)
ASSETS | ||||||
Investments at value — unaffiliated (including securities loaned of $180,552,956) (cost — $1,825,826,289) | $ | 2,257,669,295 | ||||
Investments at value — affiliated (cost $202,346,746) | 202,511,023 | |||||
Investments sold receivable | 741,439 | |||||
Dividends receivable | 2,881,267 | |||||
Securities lending income receivable — affiliated | 16,368 | |||||
Interest receivable | 38 | |||||
Margin variation receivable | 100,334 | |||||
Total assets | 2,463,919,764 | |||||
LIABILITIES | ||||||
Collateral on securities loaned at value | 184,710,940 | |||||
Short positions at value (proceeds — $474,070) | 474,107 | |||||
Investment advisory fees payable | 70,582 | |||||
Professional fees payable | 17,277 | |||||
Trustees’ fees payable | 12,188 | |||||
Total liabilities | 185,285,094 | |||||
NET ASSETS | $ | 2,278,634,670 | ||||
NET ASSETS CONSIST OF | ||||||
Investors’ capital | 1,846,302,829 | |||||
Net unrealized appreciation/depreciation | 432,331,841 | |||||
NET ASSETS | $ | 2,278,634,670 | ||||
72 | Appendix |
The accompanying notes are an integral part of these financial statements.
STATEMENT OF OPERATIONS: S&P 500 Stock Master Portfolio
Six Months Ended June 30, 2011 (Unaudited)
INVESTMENT INCOME | ||||||
Dividends — unaffiliated | $ | 22,068,648 | ||||
Securities lending — affiliated | 359,656 | |||||
Income — affiliated | 99,337 | |||||
Interest | 1,725 | |||||
Total income | 22,529,366 | |||||
EXPENSES | ||||||
Investment advisory | 562,859 | |||||
Professional | 23,607 | |||||
Independent Trustees | 38,121 | |||||
Total expenses | 624,587 | |||||
Less fees waived by advisor | (61,728 | ) | ||||
Total expenses after fees waived | 562,859 | |||||
NET INVESTMENT INCOME | 21,966,507 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) | ||||||
Net realized gain (loss) from: | ||||||
Investments | (643,462 | ) | ||||
Investments — affiliated | (10,841 | ) | ||||
Financial futures contracts | 690,531 | |||||
NET REALIZED GAIN (LOSS) | 36,228 | |||||
Net change in unrealized appreciation/depreciation on: | ||||||
Investments | 108,556,437 | |||||
Financial futures contracts | (349,899 | ) | ||||
Short positions | (37 | ) | ||||
NET CHANGE IN UNREALIZED APPRECIATION/DEPRECIATION | 108,206,501 | |||||
TOTAL REALIZED AND UNREALIZED GAIN | 108,242,729 | |||||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS | $ | 130,209,236 | ||||
Appendix | 73 |
The accompanying notes are an integral part of these financial statements.
STATEMENTS OF CHANGES IN NET ASSETS: S&P 500 Stock Master Portfolio
Six Months | For the | |||||||||
Ended June 30, | Year Ended | |||||||||
2011 | December 31, | |||||||||
INCREASE (DECREASE) IN NET ASSETS | (Unaudited) | 2010 | ||||||||
Operations | ||||||||||
Net investment income | $ | 21,966,507 | $ | 40,499,948 | ||||||
Net realized gain (loss) | 36,228 | (97,772,658 | ) | |||||||
Net change in unrealized appreciation/depreciation | 108,206,501 | 343,783,895 | ||||||||
Net increase in net assets resulting from operations | 130,209,236 | 286,511,185 | ||||||||
Capital Transactions | ||||||||||
Proceeds from contributions | 115,264,568 | 253,464,019 | ||||||||
Fair value of withdrawals | (125,555,915 | ) | (430,320,410 | ) | ||||||
Net decrease in net assets derived from capital transactions | (10,291,347 | ) | (176,856,391 | ) | ||||||
Net Assets | ||||||||||
Total increase in net assets | 119,917,889 | 109,654,794 | ||||||||
Beginning of period | 2,158,716,781 | 2,049,061,987 | ||||||||
End of period | $ | 2,278,634,670 | $ | 2,158,716,781 | ||||||
FINANCIAL HIGHLIGHTS: S&P 500 Stock Master Portfolio
Six Months | ||||||||||||||||||||||||||
Ended | ||||||||||||||||||||||||||
June 30, 2011 | For Year Ended December 31, | |||||||||||||||||||||||||
(Unaudited) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||||
Total Investment Return | ||||||||||||||||||||||||||
Total Investment Return | 6.03% | (1) | 15.06% | 26.63% | (36.86 | )% | 5.54% | 15.75% | ||||||||||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||||||
Total expenses | 0.06% | (2) | 0.05% | 0.05% | 0.05% | 0.05% | 0.05% | |||||||||||||||||||
Total expenses after fees waived | 0.05% | (2) | 0.05% | 0.05% | 0.05% | 0.05% | 0.05% | |||||||||||||||||||
Net investment income | 1.95% | (2) | 2.01% | 2.35% | 2.32% | 1.98% | 1.93% | |||||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||||
Net assets, end of year (000) | $ | 2,278,635 | $ | 2,158,717 | $ | 2,049,062 | $ | 1,690,980 | $ | 2,920,748 | $ | 2,727,449 | ||||||||||||||
Portfolio turnover(3) | 2% | 9% | 5% | 8% | 7% | 14% | ||||||||||||||||||||
(1) | Aggregate total investment return. | |
(2) | Annualized. | |
(3) | Portfolio turnover rates include in-kind transactions, if any. |
74 | Appendix |
The accompanying notes are an integral part of these financial statements.
Notes to Financial Statements
(Unaudited)
1. | ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES |
Master Investment Portfolio (“MIP”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end management investment company. MIP is organized as a Delaware statutory trust. The financial statements and these accompanying notes relate to S&P 500 Stock Master Portfolio (the “Master Portfolio”), which is a series of MIP. The Master Portfolio’s financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
The following is a summary of significant accounting policies followed by the Master Portfolio:
Valuation: US GAAP defines fair value as the price the Master would receive to sell an asset or to pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Master Portfolio fair values its financial instruments at market value using independent dealers or pricing services under policies approved by the Board of Trustees of MIP (the “Board”). Equity investments traded on a recognized securities exchange or the NASDAQ Global Market System are valued at the last reported sale price that day or the NASDAQ official closing price, if applicable. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day are valued at the last available bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that such prior day’s price no longer reflects the fair value of the security. Investments in open-end registered investment companies are valued at net asset value each business day. Financial futures contracts traded on exchanges are valued at their last sale price. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or is not available, the investment will be valued in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, BlackRock Fund Advisors (“BFA”), the Master Portfolio’s investment advisor, seeks to determine the price that the Master Portfolio might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that BFA deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.
Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Master Portfolio either delivers collateral or segregates assets in connection with certain investments (e.g., financial futures contracts), the Master Portfolio will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit securities as collateral for certain investments.
Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Master Portfolio is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, some of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain.
Securities Lending: The Master Portfolio may lend securities to approved borrowers, such as banks, brokers, and other financial institutions. The borrower pledges cash, securities issued or guaranteed by the US government or irrevocable letters of credit issued by a bank as collateral, which will be maintained at all times in an amount equal to at least 100% of the current market value of the loaned securities. The market value of the loaned securities is determined at the close of business of the Master Portfolio and any additional required collateral is delivered to the Master Portfolio on the next business day. Securities lending income, as disclosed in the Statement of Operations, represents the income earned from the investment of the cash collateral, net of rebates paid to, or fees paid by, borrowers and less the fees paid to the securities lending agent. During the term of the loan, the Master Portfolio earns dividends and interest on the securities loaned but does not receive dividend or interest income on the securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions. In the event that the borrower defaults on its obligation to return borrowed securities because of insolvency or for any other reason, the Master Portfolio could experience delays and costs in gaining access to the collateral. The Master Portfolio also could suffer a loss if the value of an investment purchased with cash collateral falls below the market value of loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. During the period, the participating Master Portfolio accepted only cash collateral in connection with securities loaned.
Income Taxes: The Master Portfolio is classified as a partnership for federal income tax purposes. As such, each investor in the Master Portfolio is treated as the owner of its proportionate share of the net assets, income, expenses and realized and unrealized gains and losses of the Master Portfolio. Therefore, no federal income tax provision is required. It is intended that the Master Portfolio’s assets will be managed so an investor in the Master Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended.
The Master Portfolio files US federal and various state and local tax returns. No income tax returns are currently under examination. The
Appendix | 75 |
statute of limitations on the Master Portfolio’s US federal tax returns remains open for each of the four years ended December 31, 2010. The statutes of limitations on the Master Portfolio’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. There are no uncertain tax positions that require recognition of a tax liability.
Recent Accounting Standards: In May 2011, the Financial Accounting Standards Board issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Master Portfolio’s financial statements and disclosures.
Other: Expenses directly related to the Master Portfolio are charged to the Master Portfolio. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.
2. DERIVATIVE FINANCIAL INSTRUMENTS
The Master Portfolio engages in various portfolio investment strategies using derivative contracts both to increase the return of the Master Portfolio and to economically hedge, or protect, its exposure to certain risks such as equity risk. These contracts may be transacted on an exchange.
Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.
Financial Futures Contracts: The Master Portfolio purchases or sells financial futures contracts to gain exposure to, or economically hedge against, changes in the value of equity securities (equity risk). Financial futures contracts are agreements between the Master Portfolio and counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on settlement date. Pursuant to the contract, the Master Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Master Portfolio as appreciation or depreciation. When the contract is closed, the Master Portfolio records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures transactions involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.
Derivative Instruments Categorized by Risk Exposure:
Fair Value of Derivative Instruments as of June 30, 2011
Asset Derivatives | ||||||
Statement of Assets | ||||||
and Liabilities | ||||||
Location | Value | |||||
Equity Contracts | Net unrealized appreciation/depreciation* | $ | 674,494 | |||
* | Includes cumulative unrealized appreciation/depreciation of financial futures contracts as reported in the Schedule of Investments. Only the current day’s margin variation is reported within the Statement of Assets and Liabilities. |
The Effect of Derivative Instruments on the Statement of Operations
Period Ended June 30, 2011
Net Change in Unrealized | ||||||||
Net Realized Gain From | Appreciation on | |||||||
Financial Futures Contracts | Financial Futures Contracts | |||||||
Equity Contracts | $ | 690,531 | $ | (349,899 | ) | |||
For the six months ended June 30, 2011, the average quarterly number of contracts and notional amount of outstanding financial futures contracts purchased was 286 and $18,864,038 respectively.
3. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
The PNC Financial Services Group, Inc. (“PNC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate of the Master Portfolio for 1940 Act purposes, but Barclays are not.
MIP, on behalf of the Master Portfolio, entered into an Investment Advisory Agreement with BFA (the “Investment Advisory Agreement”) the Master Portfolio’s, investment advisor, an indirect wholly owned subsidiary of BlackRock, to provide investment advisory services. Pursuant to the Investment Advisory Agreement with MIP, BFA is responsible for the management of the Master Portfolio’s investments and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Master Portfolio. For such services, the Master Portfolio pays BFA an annual investment advisory fee of 0.05% of the average daily net assets of the Master Portfolio.
The fees and expenses of the Master Portfolio’s trustees who are not “interested persons” of MIP, as defined in the 1940 Act (“Independent Trustees”), counsel to the Independent Trustees and MIP’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Master Portfolio. BFA has contractually agreed to cap the expenses of the Master Portfolio at the rate at which the Master Portfolio an advisory fee to BFA by providing an offsetting credit against the investment advisory fees paid by the Master Portfolio pays an amount equal to the independent expenses. These contractual waivers are effective through April 30, 2012. The amounts of the waivers, if any, are shown as fees waived in the Statement of Operations.
MIP entered into an administration services arrangement with “BTC”, which has agreed to provide general administration services (other than investment advice and related portfolio activities). BTC may delegate certain of its administration duties to sub-administrators. BTC, in consideration thereof, has agreed to bear all of the Master Portfolio and MIP’s ordinary advisory fees, distribution fees, brokerage and other expenses related to the execution of portfolio transactions, extraordinary expenses and certain other expenses which are borne by the Master Portfolio.
BTC is not entitled to compensation for providing administration services to the Master Portfolio, for so long as BTC is entitled to compensation for providing administration services to corresponding
76 | Appendix |
feeder funds that invest substantially all of their assets in the Master Portfolio, or BTC (or an affiliate) receives investment advisory fees from the Master Portfolio.
The Master Portfolio received an exemptive order from the SEC permitting it, among other things, to pay an affiliated securities lending agent a fee based on a share of the income derived from the securities lending activities and has retained BlackRock Investment Management (“BIM”), an affilate of BFA, as the securities lending agent. BIM may, on behalf of the Master Portfolio, invest cash collateral received by the Master Portfolio for such loans, among other things, in a private investment company managed by BIM or in registered money market funds advised by BIM or its affiliates. The market value of securities on loan and the value of the related collateral are shown in the Statement of Assets and Liabilities as securities loaned at value and collateral on securities loaned at value, respectively. The cash collateral invested by BIM is disclosed in the Schedule of Investments. The share of income earned by the Master Portfolio on such investments is shown as securities lending — affiliated in the Statement of Operations. BIM has voluntarily agreed to waive its fees for the period beginning December 1, 2009 until further notice.
The Master Portfolio may invest its positive cash balances in certain money market funds managed by BFA or an affiliate. The income earned on these temporary cash investments is included in income-affiliated in the Statement of Operations.
Certain officers and/or trustees of MIP are officers and/or directors of BlackRock or its affiliates.
4. INVESTMENTS
Purchases and sales of investments excluding short-term securities for the six months ended June 30, 2011, were $75,180,935 and $51,120,521 respectively.
5. CONCENTRATION, MARKET AND CREDIT RISK
In the normal course of business, the Master Portfolio invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all of its obligations (issuer credit risk). The value of securities held by the Master Portfolio may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Master Portfolio; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Master Portfolio may be exposed to counterparty risk, or the risk that an entity with which the Master Portfolio has unsettled or open transactions may fail to or be unable to perform on its commitments. The Master Portfolio manages counterparty risk by entering into transactions only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Master Portfolio to market, issuer and counterparty credit risks, consist principally of financial investments and receivables due from counterparties. The extent of the Master Portfolio’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Master Portfolio’s Statement of Assets and Liabilities, less any collateral held by the Master Portfolio.
6. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Master Portfolio through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
DISCLOSURE OF INVESTMENT ADVISORY AGREEMENT
The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of Master Investment Portfolio (the “Master Fund”) met on April 5, 2011 and May 17-18, 2011 to consider the approval of the Master Fund’s investment advisory agreement (the “Agreement”) with BlackRock Fund Advisors (“BlackRock”), the Master Fund’s investment advisor, on behalf of S&P 500 Stock Master Portfolio (the “Master Portfolio”), a series of the Master Fund.
Activities and Composition of the Board: The Board consists of thirteen individuals, eleven of whom are not “interested persons” of the Master Fund as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of the Master Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Co-Chairs of the Board are each Independent Board Members. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight and Contract Committee and an Executive Committee, each of which is composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member) and is chaired by Independent Board Members. The Board also established an ad hoc committee, the Joint Product Pricing Committee, which consisted of Independent Board Members and directors/trustees of the boards of certain other BlackRock-managed funds, who were not “interested persons” of their respective funds.
The Agreement: Pursuant to the 1940 Act, the Board is required to consider the continuation of the Agreement on an annual basis. In connection with this process, the Board assessed, among other things, the nature, scope and quality of the services provided to the Master Portfolio by BlackRock, its personnel and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services, risk oversight, compliance program and assistance in meeting applicable legal and regulatory requirements.
The Board, acting directly and through its committees, considers at each of its meetings, and from time to time as appropriate, factors that are relevant to its annual consideration of the renewal of the Agreement, including the services and support provided by BlackRock to the Master Portfolio and its shareholders. Among the matters the Board considered were: (a) the investment performance of an affiliated feeder fund that invests all of its investable assets in the Master Portfolio (the “representative feeder fund”) for one-, three- and five-year periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management’s and portfolio managers’ analysis of the reasons for any over performance or underperformance against peer funds and/or benchmarks, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Master Portfolio for services, such as transfer agency, marketing and distribution, call center and fund accounting; (c) Master Portfolio operating expenses and how BlackRock allocates expenses to the Master Portfolio; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Master Portfolio’s investment objective, policies and restrictions; (e) the Master Fund’s compliance with its Code of Ethics and other compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of the Master Fund’s valuation and liquidity procedures; (k) an analysis of contractual and
Appendix | 77 |
actual management fees for products with similar investment objectives across the open-end fund, exchange traded fund (“ETF”), closed-end fund and institutional account product channels, as applicable; (l) BlackRock’s compensation methodology for its investment professionals and the incentives it creates; and (m) periodic updates on BlackRock’s business.
BOARD CONSIDERATIONS IN APPROVING THE AGREEMENT
The Approval Process: Prior to the April 5, 2011 meeting, the Board requested and received materials specifically relating to the Agreement. The Board is engaged in a process with BlackRock to review periodically the nature and scope of the information provided to better assist its deliberations. The materials provided in connection with the April meeting included (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on the fees and expenses of the Master Portfolio and the representative feeder fund, as applicable, and the investment performance of the representative feeder fund as compared with a peer group of funds as determined by Lipper (collectively, “Peers”), as well as the gross investment performance of the representative feeder fund as compared with its benchmark; (b) information on the profitability of the Agreement to BlackRock and a discussion of fall-out benefits to BlackRock and its affiliates and significant shareholders; (c) a general analysis provided by BlackRock concerning investment management fees (a combination of the advisory fee and the administration fee, if any) charged to other clients, such as institutional clients, ETFs and closed-end funds, under similar investment mandates, as well as the performance of such other clients, as applicable; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by the Master Portfolio to BlackRock; (f) sales and redemption data regarding the Master Portfolio’s shares; and (g) if applicable, a comparison of management fees to similar BlackRock open-end funds, as classified by Lipper.
At an in-person meeting held on April 5, 2011, the Board reviewed materials relating to its consideration of the Agreement. As a result of the discussions that occurred during the April 5, 2011 meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the May 17-18, 2011 Board meeting.
At an in-person meeting held on May 17-18, 2011, the Board of the Master Fund, including the Independent Board Members, unanimously approved the continuation of the Agreement between BlackRock and the Master Fund with respect to the Master Portfolio for a one-year term ending June 30, 2012. In approving the continuation of the Agreement, the Board considered: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Master Portfolio and BlackRock; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with the Master Portfolio; (d) economies of scale; (e) fall-out benefits to BlackRock as a result of its relationship with the Master Portfolio; and (f) other factors deemed relevant by the Board Members.
The Board also considered other matters it deemed important to the approval process, such as payments made to BlackRock or its affiliates relating to the distribution of Master Portfolio shares, services related to the valuation and pricing of portfolio holdings of the Master Portfolio, direct and indirect benefits to BlackRock and its affiliates and significant shareholders from their relationship with the Master Portfolio and advice from independent legal counsel with respect to the review process and materials submitted for the Board’s review. The Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.
A. Nature, Extent and Quality of the Services Provided by BlackRock: The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of the Master Portfolio. The Board received information regarding the investment performance of the representative feeder fund. The Board met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. The Board also reviewed the materials provided by the Master Portfolio portfolio management team discussing the performance of the representative feeder fund and the Master Portfolio’s investment objective, strategies and outlook.
The Board considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally and the Master Portfolio’s portfolio management team, investments by portfolio managers in the funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s use of technology, BlackRock’s commitment to compliance, BlackRock’s credit analysis capabilities, BlackRock’s risk analysis capabilities and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board engaged in a review of BlackRock’s compensation structure with respect to the Master Portfolio’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.
In addition to advisory services, the Board considered the quality of the administrative and non-investment advisory services provided to the Master Portfolio. BlackRock and its affiliates and significant shareholders provide the Master Portfolio with certain administrative, transfer agency, shareholder and other services (in addition to any such services provided to the Master Portfolio by third parties) and officers and other personnel as are necessary for the operations of the Master Portfolio. In addition to investment advisory services, BlackRock and its affiliates provide the Master Portfolio with other services, including (i) preparing disclosure documents, such as the prospectus, the statement of additional information and periodic shareholder reports; (ii) assisting with daily accounting and pricing; (iii) overseeing and coordinating the activities of other service providers; (iv) organizing Board meetings and preparing the materials for such Board meetings; (v) providing legal and compliance support; and (vi) performing other administrative functions necessary for the operation of the Master Portfolio, such as tax reporting, fulfilling regulatory filing requirements and call center services. The Board reviewed the structure and duties of BlackRock’s fund administration, accounting, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.
B. The Investment Performance of the Master Portfolio and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of the Master Portfolio. The Board noted that the Master Portfolio’s investment results correspond directly to the investment results of the representative feeder fund. In preparation for the April 5, 2011 meeting, the Board worked with BlackRock and Lipper to develop a template for, and was provided with, reports independently prepared by Lipper, which included a comprehensive analysis of the representative feeder fund’s performance. The Board also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with its review, the Board received and reviewed information regarding the investment performance of the representative feeder fund as compared to funds in the representative feeder fund’s applicable Lipper category and the gross investment performance of the representative feeder fund as compared with its benchmark. The Board was provided with a description of the methodology used by Lipper to select peer funds. The Board and the
78 | Appendix |
Board’s Performance Oversight and Contract Committee regularly review and meet with Master Portfolio management to discuss the performance of the Master Portfolio throughout the year.
The Board noted that the representative feeder fund’s gross performance exceeded its benchmark index during each of the one-, three- and five-year periods reported.
The Board noted that BlackRock has made changes to the organization of the overall equity group designed to result in a strengthened leadership team with clearer accountability.
C. Consideration of the Advisory/Management Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Master Portfolio: The Board, including the Independent Board Members, reviewed the Master Portfolio’s contractual advisory fee ratio compared with the other funds in the representative feeder fund’s Lipper category. It also compared the representative feeder fund’s total expense ratio, as well as the Master Portfolio’s actual advisory fee ratio, to those of other funds in the representative feeder fund’s Lipper category. The Board considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts.
The Board received and reviewed statements relating to BlackRock’s financial condition and profitability with respect to the services it provided the Master Portfolio. The Board was also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Master Portfolio. The Board reviewed BlackRock’s profitability with respect to the Master Portfolio and other funds the Board currently oversees for the year ended December 31, 2010 compared to available aggregate profitability data provided for the years ended December 31, 2009 and December 31, 2008. The Board reviewed BlackRock’s profitability with respect to other fund complexes managed by BlackRock and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by BlackRock, the types of funds managed, expense allocations and business mix, and the difficulty of comparing profitability as a result of those factors.
The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board considered BlackRock’s operating margin, in general, compared to the operating margin for leading investment management firms whose operations include advising open-end funds, among other product types. That data indicates that operating margins for BlackRock, in general and with respect to its registered funds, are generally consistent with margins earned by similarly situated publicly traded competitors. In addition, the Board considered, among other things, certain third party data comparing BlackRock’s operating margin with that of other publicly-traded asset management firms. That third party data indicates that larger asset bases do not, in themselves, translate to higher profit margins.
In addition, the Board considered the cost of the services provided to the Master Portfolio by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of the Master Portfolio and the other funds advised by BlackRock and its affiliates. As part of its analysis, the Board reviewed BlackRock’s methodology in allocating its costs to the management of the Master Portfolio. The Board also considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreement and to continue to provide the high quality of services that is expected by the Board.
The Board noted that the Master Portfolio’s contractual advisory fee ratio was lower than or equal to the median contractual advisory fee ratio paid by the representative feeder fund’s Peers, in each case before taking into account any expense reimbursements or fee waivers.
D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Master Portfolio increase. The Board also considered the extent to which the Master Portfolio benefits from such economies and whether there should be changes in the advisory fee rate or structure in order to enable the Master Portfolio to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the asset level of the pertinent Master Portfolio.
E. Other Factors Deemed Relevant by the Board Members: The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates and significant shareholders may derive from their respective relationships with the Master Portfolio, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates and significant shareholders as service providers to the Master Portfolio, including for administrative, transfer agency, distribution and securities lending services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts. The Board further noted that BlackRock’s funds may invest in affiliated ETFs without any offset against the management fees payable by the funds to BlackRock.
In connection with its consideration of the Agreement, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.
CONCLUSION
The Board, including the Independent Board Members, unanimously approved the continuation of the Agreement between BlackRock and the Master Fund, with respect to the Master Portfolio, for a one-year term ending June 30, 2012. As part of its approval, the Board considered the detailed review of BlackRock’s fee structure, as it applies to the Master Fund, conducted by the ad hoc Joint Product Pricing Committee. Based upon its evaluation of all of the aforementioned factors in their totality, the Board, including the Independent Board Members, was satisfied that the terms of the Agreement were fair and reasonable and in the best interest of the Master Portfolio and its shareholders. In arriving at its decision to approve the Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination. The contractual fee arrangements for the Master Portfolio reflect the results of several years of review by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. As a result, the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.
Appendix | 79 |
Officers and Trustees
Ronald W. Forbes, Co-Chair of the Board and Trustee
Rodney D. Johnson, Co-Chair of the Board and Trustee
David O. Beim, Trustee
Richard S. Davis, Trustee
Henry Gabbay, Trustee
Dr. Matina Horner, Trustee
Herbert I. London, Trustee
Cynthia A. Montgomery, Trustee
Joseph P. Platt, Trustee
Robert C. Robb, Jr., Trustee
Toby Rosenblatt, Trustee
Kenneth L. Urish, Trustee
Frederick W. Winter, Trustee
John M. Perlowski, President and Chief Executive Officer
Brendan Kyne, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer and Anti-Money Laundering Officer
Ira P. Shapiro, Secretary
80 | Officers and Trustees |
Homestead Funds
4301 Wilson Blvd.
Arlington, VA 22203
1-800-258-3030
4301 Wilson Blvd.
Arlington, VA 22203
1-800-258-3030
shareholders and others who have received
a copy of the prospectus.
Item 2. Code of Ethics.
Not required in this filing.
Not required in this filing.
Item 3. Audit Committee Financial Expert.
Not required in this filing.
Not required in this filing.
Item 4. Principal Accountant Fees and Services.
Not required in this filing.
Not required in this filing.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Not applicable.
Item 6. Investments.
(a) The Registrant’s schedule of investments in unaffiliated issuers is included in the report to shareholders under 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.
Not applicable.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Not applicable.
Item 11. Controls and Procedures.
(a) Disclosure Controls and Procedures. The registrant’s principal executive officer and principal financial officer concluded that the registrant’s Disclosure Controls and Procedures are effective based on their evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
(b) Internal Control. There were no changes in registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) | Not required with this filing. |
(a)(2) | A separate certification for the principal executive officer and principal financial officer of the registrant, as required by Rule 30a-2(a) under the Investment Company Act of 1940, is filed herewith. | |
(a)(3) | Not applicable. | |
(b) | A certification by the registrant’s principal executive officer and principal financial officer, as required by Section 906 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940, is attached hereto. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
HOMESTEAD FUNDS, INC. | ||||
By: | /s/ Peter R. Morris | |||
Peter R. Morris | ||||
President, Chief Executive Officer and Director | ||||
Date: September 2, 2011
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Peter R. Morris | |||
Peter R. Morris | ||||
President, Chief Executive Officer and Director | ||||
Date: September 2, 2011
By: | /s/ Amy M. DiMauro | |||
Amy M. DiMauro | ||||
Treasurer | ||||
Date: September 2, 2011