SEMI-ANNUAL REPORT
April 30, 1997
TABLE OF CONTENTS
Manager's Message
New Century Capital
Portfolio of Investments
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Financial Highlights
New Century I
Portfolio of Investments
Statement of Assets and Liabilities
Statement of Operations
Statement of Changes in Net Assets
Financial Highlights
New Century Capital and I
Notes to the Financial
Statements
June 10, 1997
Dear Fellow Shareholder:
During the six-month period ended April 30, 1997, the U.S.
economy continued to display moderate growth, healthy corporate
profits, and relatively low inflation.
This economic environment fueled the strong performance that we
have enjoyed in the U.S. equity markets. The strength, however,
continues to be concentrated in larger companies. The Standard &
Poor's 500 Composite Stock Price Index, which reflects the
performance of the stocks of the largest domestic companies,
gained 14.7% over this period. The Russell 2000 Index, which
reflects the performance of the stocks of smaller-capitalized
companies, posted a meager gain of 1.6%. The international
equity markets, as measured by the Morgan Stanley Capital
International-Europe, Australasia, Far East Index, gained 1.7% in
dollar-adjusted terms.
The U.S. fixed-income markets suffered from an erratic increase
in interest rates as investors balanced expectations for economic
growth, inflation, and intervention by the Federal Reserve Board.
In November, the balance shifted towards an expectation for slower
growth and the yield on the 10-year U.S. Treasury declined to 6.04%.
This yield rose to 6.6% in January as the balance shifted back to an
expectation of stronger growth and inflation. A similar cycle occurred
later in the period as the yield on the 10-year U.S. Treasury fell to
6.2% in February and rose to 6.9% in March.
I am pleased to report that during this period, each fund's
disciplined investment methodology --- which is based upon sector
allocation, short-term performance criteria, and diversification
- --- reduced investment volatility and produced a level of
investment return consistent with the fund's investment
objective. For the six-month period ended April 30, 1997, the
New Century Capital Fund produced a return of 7.5%; the New
Century I Fund produced a return of 5.42%. The three-year Beta
was .88 for the Capital Fund and .60 for the I Fund. (Beta
measures the risk of a fund relative to the variability of an
index, in this case, the Standard & Poor's 500.) A fund with a
Beta less than 1.0 would be expected to fall less than the index
during a declining market and to rise less than the index during
a rising market.
Sector allocation led us to focus our equity investments in the
larger capitalized companies by concentrating in the growth and
the growth and income sectors. Throughout the period, we
minimized our participation in the foreign sector. Sector
allocation also led us to concentrate our fixed-income
investments in the convertible and high-yield sectors.
As we look forward to the next six months, our investment goal is
to balance each fund's investment allocation among the strongest
sectors and to diversify our investment within each sector among
the mutual funds that provide superior risk-adjusted performance.
Sincerely,
Wayne M. Grzecki
Wayne M. Grzecki
Portfolio Manager
<TABLE>
<CAPTION>
Total Annual Return For The Period Ending April 30, 1997
1 Year 5 Years Since Inception(1/31/89)
<S> <C> <C> <C>
New Century
Capital 9.06% 13.35% 11.69%
New Century I 9.07% 11.12% 9.96%
</TABLE>
Your investment and return values fluctuate so that your shares,
when redeemed, may be worth more or less than the original cost.
Past performance is no guarantee of future results.
<TABLE>
<CAPTION>
NEW CENTURY CAPITAL
PORTFOLIO OF INVESTMENTS
April 30, 1997
(UNAUDITED)<F1>
Issuer Shares Value
<S> <C> <C>
INVESTMENT COMPANIES - 97.2%
Aggressive Growth Funds 3.5%
Oppenheimer Capital
Appreciation 70,986 2,298,537
Small Company Funds 10.9%
Eclipse Financial
Asset Equity 150,538 1,996,138
Mutual Discovery 114,093 2,077,635
Neuberger Genisis 123,298 1,475,872
Nicholas II 20,775 676,430
Oakmark Small Cap 61,919 939,305
7,165,380
Growth Funds 40.1%
Davis New York Venture 293,399 5,539,379
Janus 108,582 2,742,771
Legg Mason Value Trust 146,240 5,336,296
Longleaf Partners 535 12,843
MFS Research 297,807 5,598,769
Mutual Shares 85,752 1,677,316
Neuberger Partners 66,176 1,762,279
Scudder Value 103,329 2,000,450
Sound Shore 40,105 925,626
Vanguard PrimeCap 22,583 747,953
26,343,682
Growth and Income Funds 33.1%
Goldman Sachs Growth
& Income 159,033 3,805,664
Lexington Growth & Income 81,043 1,608,711
MFS Mass Invest Trust 247,554 3,817,284
SAFECO Equity 108,009 1,875,029
SEI S&P 500 Index 89,064 2,264,018
Selected American 59,438 1,360,546
T. Rowe Dividend Growth 125,367 2,129,986
Vanguard Index 500 65,121 4,877,559
21,738,797
Equity-Income Funds 3.0%
SAFECO Income 93,233 1,988,663
Foreign Stock Funds 6.4%
BT International Equity 85,107 1,581,280
Managers International 26,364 1,177,153
Vanguard Intl Growth 86,302 1,467,142
4,225,575
Total Investment Companies
(Cost $61,483,007)<F2> 63,760,634
Total Investments - 97.2%
(Cost, $61,483,007) 63,760,634
CASH IN EXCESS OF LIABILITIES
AND OTHER ASSETS 3.0% 1,868,153
NET ASSETS - 100% $65,628,787
<FN>
<F1> See accompanying notes to financial statements.
<F2> Cost for federal income tax at April 30, 1997 was
$61,483,007 and net unrealized appreciation consisted of:
Gross unrealized appreciation $2,863,970
Gross unrealized depreciation (586,343)
Net unrealized appreciation $2,277,627
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY CAPITAL
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1997
(UNAUDITED)<F1>
ASSETS
<S> <C>
Investments, at value
(Cost, $61,483,007) (Note 1a) $63,760,634
Cash 51,634
Receivables for:
Capital stock sold 7,741
Investment securities sold 1,900,000
Total Assets 65,720,009
LIABILITIES
Payable for:
Investment advisory fee 52,061
Administrative fee 5,400
Accrued expenses 33,761
Total Liabilities 91,222
NET ASSETS
(applicable to 5,296,909 outstanding
shares; unlimited number of shares
of beneficial interest authorized,
$.01 par value.) $65,628,787
Net Asset Value, offering price and
redemption price per share $65,628,787
/5,296,909 shares of beneficial
interest outstanding) $12.39
Net Assets consist of:
Undistributed net realized gain on
investments $5,183,952
Unrealized appreciation of
investments 2,277,627
Paid-in capital 58,167,208
Total Net Assets $65,628,787
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY CAPITAL
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
April 30, 1997
(UNAUDITED)<F1>
<S> <C>
NET INVESTMENT LOSS:
Income:
Interest $2,861
Dividends 438,265
Total Investment Income 441,126
Expenses:
Distribution costs (Note 3) 68,433
Investment advisory fees
(Note 2) 322,584
Transfer agent fees 15,550
Legal and audit fees 8,865
Custody and accounting fees 29,690
Registration and filing fees 1,080
Administration fee (Note 2) 16,270
Trustees' fees 2,175
Other 0
Total Expenses 464,647
NET INVESTMENT LOSS (23,521)
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain on
investments 1,613,652
Capital gain distributions from
regulated investment
companies 4,065,874
Net unrealized depreciation of
investments during the year (1,058,945)
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 4,620,581
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $4,597,060
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY CAPITAL
STATEMENT OF CHANGES IN NET ASSETS<F1>
For the For the
Six Months Year Ended
Ended 4/30/97 10/31/96
(Unaudited)
<S> <C> <C>
INCREASE/(DECREASE) IN NET
ASSETS
OPERATIONS
Net investment loss (23,521) ($395,054)
Net realized gain on
investments 1,613,652 6,130,110
Capital gain distributions
from regulated investment
companies 4,065,874 3,377,702
Net unrealized appreciation
(depreciation) of invest-
ments (1,058,945) (1,346,839)
Net increase in net assets
resulting from oper-
ations 4,597,060 7,765,919
DISTRIBUTION TO SHAREHOLDERS FROM:
Realized gains on investments
($2.03 and $1.42 per share,
respectively) (9,266,183) (5,424,859)
CAPITAL SHARE TRANSACTIONS
Increase in net assets from
capital share
transactions (a) 7,556,553 9,511,648
Total increase in net
assets 2,887,430 11,852,708
NET ASSETS:
Beginning of period 62,741,357 50,888,649
End of period $65,628,787 $62,741,357
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
Summary of capital share transactions is as follows:<F1>
<S> <C> <C> <C> <C>
Shares sold 189,368 $2,367,149 806,181 10,480,616
Shares issued
on reinvest-
ment of
distributions 757,190 8,965,128 422,545 5,180,407
946,558 11,332,277 1,228,726 15,661,023
Shares redeemed (292,194) (3,775,724) (465,251) (6,149,375)
Net increase 654,364 $7,556,553 763,475 $9,511,648
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY CAPITAL
Financial Highlights
(For A Share Outstanding Throughout The Period)<F1>
Six Months Year Ended
Ended April October 31,
30, 1997 1996 1995
(Unaudited)
<S> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value, begin-
ning of period $13.51 $13.12 $12.31
INCOME (LOSS) FROM
INVESTMENT OPERATIONS
Net investment loss (0.01) (0.09) (0.06)
Net gain on securities
(both realized and
unrealized) 0.92 1.90 2.16
Total from investment
operations 0.91 1.81 2.10
LESS DISTRIBUTIONS
Distributions from
capital gains (2.03) (1.42) (1.29)
Total distributions (2.03) (1.42) (1.29)
Net asset value, end of
period $12.39 $13.51 $13.12
TOTAL RETURN 7.45% 14.91% 19.60%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year
(in 000's) $65,629 $62,741 $50,889
Ratio of expenses to
average net assets 1.44%<F2> 1.47% 1.61%
Ratio of net investment
loss to average
net assets (0.07%)<F2> (0.69%) (0.52%)
Portfolio turnover 71% 214% 206%
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY CAPITAL
Financial Highlights
(For A Share Outstanding Throughout The Period)<F1>
Year Ended October 31,
1994 1993 1992
<S> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value, begin-
ning of period $12.74 $12.15 $12.28
INCOME (LOSS) FROM
INVESTMENT OPERATIONS
Net investment loss (0.08) (0.07) (0.02)
Net gain on securities
(both realized and
unrealized) 0.64 2.39 0.27
Total from investment
operations 0.56 2.32 0.25
LESS DISTRIBUTIONS
Distributions from
capital gains (0.99) (1.73) (0.38)
Total distributions (0.99) (1.73) (0.38)
Net asset value, end of
period $12.31 $12.74 $12.15
TOTAL RETURN 4.70% 20.83% 1.82%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year
(in 000's) $37,968 $39,001 $36,072
Ratio of expenses to
average net assets 1.60% 1.54% 1.58%
Ratio of net investment
loss to average
net assets (0.68%) (0.53%) (0.14%)
Portfolio turnover 107% 133% 224%
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY I
PORTFOLIO OF INVESTMENTS
04/30/97
(UNAUDITED)<F1>
<S> <C> <C>
Issuer Shares Value
INVESTMENT COMPANIES 96.9%
Small Company Funds 6.7%
Eclipse Financial Asset
Equity 77,448 1,026,965
Mutual Discovery 59,497 1,083,445
Neuberger Genisis 66,433 795,206
Growth Funds 17.5%
Davis NY Venture 98,677 1,863,020
Legg Mason Value Trust 46,430 1,694,229
Longleaf Partners 534 12,833
MFS Research 75,470 1,418,831
Mutual Shares 582 11,384
Scudder Value 51,573 998,453
Sound Shore 51,257 1,183,018
Vanguard PrimeCap 12,395 410,536
7,592,304
Growth and Income Funds 23.7%
Goldman Sachs Growth
& Income 45,892 1,098,207
Lexington Corporate Leaders 81,371 1,401,214
Lexington Growth & Income 87,689 1,740,623
MFS Mass Invest Trust 135,085 2,083,011
SEI S&P 500 Index 49,690 1,263,114
T. Rowe Dividend Growth 62,650 1,064,430
Vanguard Index 500 21,047 1,576,443
10,227,042
Convertible Securities Fund 3.2%
Fidelity Convertible 10,590 182,358
SBSF Convertible 36,649 473,503
Value Line Convertible 57,298 748,889
1,404,750
Equity-Income Funds 1.7%
Portico Growth & Income 21,107 713,634
General Corporate Bond Funds 4.8%
Janus Flexible Income 87,628 833,338
Strong Advantage 59,642 600,000
Strong Corporate Bond 61,351 651,551
2,084,888
High Quality Bond Funds 4.8%
Dodge & Cox Income 91,006 1,053,845
Scudder Short-Term Bond 92,177 1,011,183
High Yield Bond Funds 15.0%
Mainstay High Yield 224,261 1,832,214
Nicholas Income 449,545 1,582,397
Northeast Investors 275,514 3,102,285
6,516,896
Government Treasury Bond Funds 2.7%
Federated US Govt 1-3 21,422 220,643
Vanguard F/I Intermediate G/T 113,304 1,161,361
1,382,004
Worldwide Bonds 11.2%
Capital World Bond 48,973 792,382
PIMCO Foreign Bond 214,556 2,248,548
PIMCO Global Bond 187,567 1,832,533
4,873,463
Foreign Stock Funds 5.1%
BT International Equity 64,603 1,200,319
Managers International 7,263 324,285
Vanguard Intl Growth 41,274 701,663
2,226,267
Total Investments - 96.9%
(Cost, $40,769,134)<F2> 41,991,890
CASH AND OTHER ASSETS LESS
LIABILITIES - (3.1%) 1,356,226
NET ASSETS - 100% $43,348,116
<FN>
<F1> See accompanying notes to financial statements.
<F2> Cost for federal income tax at April 30, 1997 was
$40,769,134 and net unrealized appreciation consisted of:
Gross unrealized appreciation $1,661,156
Gross unrealized depreciation (438,398)
Net unrealized appreciation $1,222,758
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY I
STATEMENT OF ASSETS AND LIABILITIES<F1>
04/30/97
(UNAUDITED)
<S> <C>
ASSETS
Investments, at value
(Cost, $40,769,134) $41,991,890
(Note 1a)
Cash 82,867
Receivables for:
Investment securities sold 1,338,570
Capital stock sold 329
Dividends and interest 14,587
Total Assets 43,428,243
LIABILITIES
Payable for:
Investment advisory fee 52,061
Administrative fee 12,600
Accrued expenses &
other payables 15,466
Total Liabilities 80,127
NET ASSETS<F2>
(applicable to 3,677,872
outstanding shares; unlimited number
of shares of beneficial interest
authorized, $.01 par
value.) $43,348,116
Net Asset Value, offering price and
redemption price per share ($43,348,118/
3,677,872 shares of beneficial interest
outstanding) $11.79
<FN>
<F1> See accompanying notes to financial
statements.
<F2> Net Assets consist of:
Undistributed net realized gain on
investments $2,587,948
Unrealized appreciation of
investments 1,222,758
Paid-in capital 37,537,412
Total Net Assets $43,348,118
</FN>
</TABLE>
<TABLE>
NEW CENTURY I
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
April 30, 1997
(UNAUDITED)<F1>
<S> <C>
NET INVESTMENT INCOME:
Income:
Interest $96,167
Dividends 630,143
Total Investment Income 726,310
Expenses:
Distribution costs (Note 3) 52,763
Investment advisory
fees (Note 2) 211,052
Transfer agent fees 7,029
Legal and audit fees 3,258
Custody and accounting 14,500
Registration and filing fees 360
Administration fee (Note 2) 11,350
Trustees' fees 2,900
Other 355
Total Expenses 303,567
NET INVESTMENT INCOME 402,882
REALIZED AND UNREALIZED GAIN(LOSS)
ON INVESTMENTS
Net realized gain on
investments 347,147
Capital gain distributions from
regulated investment
companies 2,254,186
Net unrealized depreciation of investments
during the year (815,581)
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS 1,785,752
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS $2,188,634
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY I
STATEMENT OF CHANGES IN NET ASSETS
For the Six
Months Ended For the
4/30/97 Year Ended
UNAUDITED Oct. 31, 1997
<S> <C> <C>
OPERATIONS
Net investment income $402,882 $513,181
Net realized gain
(loss) on
investments 347,147 1,884,467
Capital gain distributions
from regulated investment
companies 2,254,186 1,421,812
Net unrealized appreciation
(depreciation) of
investments (815,851) 512,083
Net increase in net assets
resulting from
operations 2,188,364 4,331,543
DISTRIBUTION TO SHAREHOLDERS
FROM:
Net investment income ($.12
and $.18 per share, respect-
ively) (402,882) (513,181)
Realized gains on
investments ($.93 and $.91
per share,
respectively) (3,097,452) (2,343,186)
CAPITAL SHARE TRANSACTIONS
Increase in net assets from
capital share
transactions (a) 4,237,253 8,823,285
Total increase in net
assets 2,925,283 10,298,461
NET ASSETS:
Beginning of period 40,422,835 30,124,374
End of period $43,348,118 $40,422,835
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
(a) Summary of capital share transactions is as follows:<F1>
Shares Value Shares Value
<S> <C> <C> <C> <C>
Shares sold 189,133 $2,249,009 699,661 $8,169,881
Shares issued on
reinvestment of
distributions 294,017 3,378,473 233,112 2,660,469
483,150 5,627,482 932,773 10,830,350
Shares redeemed (115,558) (1,390,230) (170,309) (2,007,065)
Net increase 367,592 $4,237,252 762,464 $8,823,285
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY I
Financial Highlights
(For A Share Outstanding Throughout The Period)<F1>
Six Months Year Ended
Ended 4/30/97 October 31
(Unaudited) 1996 1995
<S> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value,
beginning of period $12.21 $11.82 $11.22
INCOME FROM INVESTMENT
OPERATIONS
Net investment income
(loss) 0.12 0.18 0.24
Net gain (loss) on
securities
(both realized and
unrealized) 0.51 1.30 1.28
Total from investment
operations 0.63 1.48 1.52
LESS DISTRIBUTIONS
Dividends from net
investment income (0.12) (0.18) (0.24)
Distributions from capital
gains (0.93) (0.91) (0.68)
Total distributions (1.05) (1.09) (0.92)
Net asset value, end of
period $11.79 $12.21 $11.82
TOTAL RETURN 5.42% 13.24% 14.93%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year
(in 000's) $43,348 $40,423 $30,124
Ratio of expenses to
average net assets 1.44%<F2> 1.61% 1.72%
Ratio of net investment
income to average net
assets 1.91%<F2> 1.45% 2.14%
2.14%
Portfolio turnover 61% 172% 191%
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
<TABLE>
<CAPTION>
NEW CENTURY I
Financial Highlights
(For A Share Outstanding Throughout The Period)<F1>
Year Ended October 31
1994 1993 1992
<S> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE
Net asset value,
beginning of period $11.94 $11.36 $11.21
INCOME FROM INVESTMENT
OPERATIONS
Net investment income
(loss) 0.20 0.36 0.28
Net gain (loss) on
securities
(both realized and
unrealized) (0.05) 1.61 0.28
Total from investment
operations 0.15 1.97 0.56
LESS DISTRIBUTIONS
Dividends from net
investment income (0.19) (0.31) (0.28)
Distributions from capital
gains (0.68) (1.08) (0.13)
Total distributions (0.87) (1.39) (0.41)
Net asset value, end of
period $11.22 $11.94 $11.36
TOTAL RETURN 1.26% 18.90% 5.02%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year
(in 000's) $22,803 $22,534 $18,949
Ratio of expenses to
average net assets 1.73% 1.93% 1.83%
Ratio of net investment
income to average net
assets 1.57% 2.11% 2.52%
Portfolio turnover 130% 73% 172%
<FN>
<F1> See accompanying notes to financial statements.
</FN>
</TABLE>
Weston Portfolios
Notes to Financial Statements
April 30, 1997 (UNAUDITED)
1. Significant Accounting Policies:
Weston Portfolios (Weston) is organized as a Massachusetts
business trust which is registered under the Investment
Company Act of 1940, as amended, as an open-end diversified
management investment company and currently offers shares of
two series: New Century I Portfolio and New Century Capital
Portfolio (together, "The Portfolios"). The investment
objective of the New Century Capital Portfolio is capital
growth, with the secondary objective being income while
managing risk. This Portfolio seeks to achieve its objective
by concentrating in shares of registered investment companies
which emphasize investments in growth stocks. The investment
objective of New Century I Portfolio is income, with the
secondary objective being growth while managing risk. This
Portfolio seeks to achieve its objective by concentrating in
shares of registered investment companies which emphasize
investments in fixed income securities, preferred stocks and
high dividend paying stocks. The price of shares of these
Portfolios fluctuates daily and there are no assurances that
the Portfolios will be successful in achieving their stated
investment objectives. The following is a summary of
significant accounting policies consistently followed by the
Portfolios in the preparation of their financial statements.
a.) Investment Valuation. Investments, representing
primarily capital stock of other open-end investment
companies, are valued at their net asset value as
reported by such companies. In the absence of readily
available market quotations, investments are valued at
fair value as determined by the Board of Trustees.
Short-term investments are valued at amortized cost which
approximates market value.
b.) Federal Income Taxes. It is the policy of each Portfolio
to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to
distribute substantially all of their taxable income to
their shareholders in a manner which results in no tax to
the Portfolios. Therefore, no federal income or excise
tax provision is required.
c.) Investment Transactions. Investment transactions are
recorded on a trade date basis. Realized gains and
losses from investment transactions are determined using
the first in, first out method.
d.) Income Recognition. Interest is accrued on portfolio
investments daily. Dividend income is recorded on the
ex-dividend date.
e.) Cost of Operations. The Portfolios bear all costs of
their operations other than expenses specifically assumed
by the Advisor. Expenses directly attributable to a
Portfolio are charged to that Portfolio; other expenses
are allocated proportionately among each Portfolio in
relation to the net assets of each Portfolio.
f.) Use of Estimates. In preparing financial statements in
accordance with generally accepted accounting principles,
management is required to make estimates and assumptions
that affect the reported amount of assets and liabilities
and the disclosure of contingent assets and liabilities
at the date of the financial statements, and revenues and
expenses during the reporting period. Actual results
could differ from those estimates.
2. Investment Advisory Fee, Administration Agreement and Trustees'
Fee
Fees paid by the Portfolios pursuant to a contract (the
"Investment Advisory Agreement") with Weston Financial Group,
Inc. are computed daily and paid monthly at an annualized
rate of 1% on the first $100 million of average daily assets
and .75% of net assets exceeding that amount. The advisory
fees are based on the net assets of each of the Portfolios
separately, and not on the total net assets of the two
series.
The Portfolios pay each Trustee who is not affiliated with
Weston Financial $3,000 annually.
Fees paid by the Portfolio pursuant to a contract (the
"Administration Agreement") with Weston Financial Group to
administer the ordinary course of the Portfolios' business
are paid monthly from a detail of actual expenses incurred in
the overseeing of the Portfolios' affairs. All expenses
incurred overseeing the Portfolios' affairs are reimbursed
monthly.
3. Distribution Plan and Other Transactions With Affiliates
The Portfolios have adopted a Distribution Plan (the
"Distribution Plan") under Section 12(b) of the Investment
Company Act of 1940 and Rule 12(b)-1 thereunder. Under the
plan, each Portfolio may pay up to .25% of its average daily
net assets to Weston Securities Corp. (the "Distributor") for
activities primarily intended to result in the sale of
shares. Under its terms, the Plan shall remain in effect from
year to year, provided such continuance is approved annually
by a vote of a majority of the Trustees and a majority of
those Trustees who are not "interested persons" of the
Portfolios and who have no direct or indirect financial
interest in the operation of the Plan or in any agreement
related to the Plan (the "Qualified Trustees").
During the six months ended April 30, 1997 Weston Securities
Corp. received sales commissions and other compensation of
$23,937 and $45,821 in connection with the purchase of
investment company shares by New Century Capital Portfolio
and New Century I Portfolio, respectively. Weston Securities
Corp. has voluntarily agreed to waive payments made by each
Portfolio pursuant to the distribution plans in amounts equal
to the sales commissions and other compensation.
Certain officers and trustees are also officers and/or
directors of Weston Financial Group, Inc. and Weston
Securities Corp.
4. Investment Transactions
For the six months ended April 30, 1997 the cost of purchases
and the proceeds from sales of securities other than short-
term notes were as follows:
<TABLE>
<CAPTION>
Purchases Sales
<S> <C> <C>
New Century Capital
Portfolio $45,650,290 $45,180,016
New Century I
Portfolio $27,559,023 $24,915,088
This Report and the financial statements contained herein are
submitted for the general information of the shareholders of
the Portfolios. This report is authorized for distribution
to prospective investors in the Portfolios only if preceded
or accompanied by an effective Prospectus which contains
details concerning the management fee expense and other
pertinent information.
wp-sa.004
</TABLE>
