ANNUAL REPORT
YEAR ENDED OCTOBER 31, 1998
<PAGE>
NEW CENTURY PORTFOLIOS
CONTENTS
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PRESIDENT'S MESSAGE 1
NEW CENTURY CAPITAL PORTFOLIO
Portfolio of Investments
October 31, 1998 2
Statement of Assets and Liabilities
October 31, 1998 3
Statement of Operations
Year ended October 31, 1998 4
Statement of Changes in Net Assets
Years ended October 31, 1998 and 1997 5
Financial Highlights
Five years in the period ended October 31, 1998 6
NEW CENTURY BALANCED PORTFOLIO
Portfolio of Investments
October 31, 1998 7
Statement of Assets and Liabilities
October 31, 1998 9
Statement of Operations
Year ended October 31, 1998 10
Statement of Changes in Net Assets
Years ended October 31, 1998 and 1997 11
Financial Highlights
Five years in the period ended October 31, 1998 12
NEW CENTURY CAPITAL AND BALANCED PORTFOLIOS
Notes to Financial Statements 13
Report of Independent Certified Public Accountants 16
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<PAGE>
PRESIDENT'S MESSAGE
Dear Fellow Shareholders:
I am pleased to present our Ninth Annual Report.
During the 10-month period ended October 31, 1998, the financial markets
exhibited dramatic volatility. The Standard & Poors 500 Composite Stock Price
Index, which reflects the performance of the stocks of the largest domestic
companies, reached a record high on July 17, 1998 only to plummet by 19% by
the close of August 1998. The S&P then increased by 11% through the end of
September, only to fall once again and retest its August low in early
October. The S&P closed the period with an impressive rally of approximately
15% from its early October low. The Russell 2000 Index, which reflects the
performance of stocks of smaller-capitalized domestic companies, was not
immune to volatility. This Index reached its high on April 21, 1998 and then
plummeted by more than 36% by early October.
Volatility did not spare the fixed income sector. Over a three-day period in
October, interest rates on long-term U.S. Treasury Bonds rose from 4.7% to
5.1%. The price of bonds, which moves in the opposite direction of interest
rates, fell from approximately $113 to $106. This decline is equivalent to a
drop of more than 500 points in the Dow Jones Industrial Average.
During the third quarter alone, we faced a possible Presidential impeachment,
continued weakness in the Japanese economy and financial turmoil in Asia, the
bail-out of a major hedge fund, profit warnings from U.S. corporations, and
the collapse of the Russian ruble.
During this 10-month period of financial volatility, a disciplined long-term
investment approach was crucial. Our investment discipline generated a 5.22%
return in New Century Capital and a 4.51% return in New Century Balanced. The
three-year Beta was .89 for the Capital Fund and .59 for the Balanced Fund.
(Beta measures the risk of a fund relative to the variability of an index, in
this case, the Standard & Poors 500. A fund with a beta less than 1.0 would
be expected to decrease less than the Index during a declining market and to
increase less than the Index during a rising market.)
As we look forward to the next six months, our goal is to balance each fund's
investment allocation among the sectors that are exhibiting the best
risk-adjusted return. Within each sector, our goal is to continue to invest
in the mutual funds that are exhibiting superior risk-adjusted performance.
Although we can not predict future performance, we are confident that our
disciplined investment approach will provide a risk-adjusted performance
consistent with each fund's objectives.
Sincerely,
Wayne M. Grzecki
President
Average Annual Total Return For The Period Ended 10/31/98
1 Year 5 Years Since Inception (1/31/89)
New Century Capital 7.97% 14.60% 12.74%
New Century Balance 6.97% 11.02% 10.56%
-1-
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1998
- ------------------------------------------------------------------------------
Issuer Shares Value
INVESTMENT COMPANIES - 100.5%
Aggressive Funds - 3.6%
Oppenheimer Capital Appreciation 86,561 $3,203,630
----------
Growth and Income Funds - 40.8%
Goldman Sachs Core U.S. Equity - A 196,732 5,524,226
Marsico Growth & Income 466,481 5,616,429
MFS Massachusetts Inv. - A 354,573 6,786,521
SEI Index S&P 500 Index - E 91,625 3,170,208
Vanguard Index 500 153,671 15,717,458
----------
36,814,842
----------
Growth Funds - 39.9%
Janus 159,700 4,466,810
Legg Mason Value Prime 160,393 8,197,664
Longleaf Partners 603 16,406
MFS Research - A 249,935 5,671,031
Oak Value 21,210 509,676
Performance Large Cap Equity Institutional 138,429 3,503,646
Vanguard Index Growth 277,605 7,692,428
Vanguard U.S. Growth 171,485 5,911,072
---------
35,968,733
----------
Small Company Funds - 4.9%
Eclipse Equity 124,080 1,652,748
Mutual Discovery - Z 1,275 21,795
Nicholas II 76,274 2,780,190
State Street Research Aurora 500 7,825
--------
4,462,558
---------
Government Treasury Bonds - 11.3%
American Century Benham Target Maturities 2010 168,013 10,144,645
----------
Total investment companies
(Cost $82,382,055) 100.5 % 90,594,408
Liabilities in excess of assets (.5)% (430,056)
Net assets 100.0 % $90,164,352
======== ===========
Cost for federal income tax at October 31, 1998 was $82,382,055 and net
unrealized appreciation consisted of:
Gross unrealized appreciation $9,185,557
Gross unrealized depreciation (973,204)
----------
Net unrealized appreciation $8,212,353
==========
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See notes to financial statements
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<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1998
- ------------------------------------------------------------------------------
ASSETS
Investments, at value (Cost $82,382,055) (Note 1A) $90,594,408
Interest receivable 1,532
--------
Total assets 90,595,940
LIABILITIES
Cash overdraft 291,234
Payable for
Investment advisory fee 71,785
Administrative fee 5,650
Accrued expenses 62,919
-------
Total liabilities 431,588
NET ASSETS
(applicable to 6,307,013 outstanding
shares; unlimited number of shares
of beneficial interest
authorized, $.01 par value. $90,164,352
===========
Net asset value,
offering price and redemption
price per share ($90,164,352/6,307,013
shares of beneficial interest outstanding) $14.30
======
Net assets consist of:
Undistributed net realized gain on investments $9,401,130
Unrealized appreciation of investments 8,212,353
Paid-in capital 72,550,869
----------
Total net assets $90,164,352
===========
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See notes to financial statements
-3-
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
STATEMENT OF OPERATIONS
Year ended October 31, 1998
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NET INVESTMENT LOSS
Income
Inter $ 5,459
Dividends 670,387
--------
Total investment income 675,846
Expenses
Distribution costs (Note 3) 151,900
Investment advisory fees (Note 2) 875,355
Transfer agent fees 32,653
Legal and audit fees 41,531
Custody and accounting fees 66,041
Registration and filing fees 7,388
Administration fee (Note 2) 68,180
Trustees' fees 5,959
Other 8,262
--------
Total expenses 1,257,269
--------
Net investment loss (581,423)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain on investments 5,919,837
Capital gain distributions from
regulated investment companies 5,157,916
Net unrealized depreciation of
investments during the year (4,543,009)
----------
Net realized and unrealized gain on investments 6,534,744
---------
Net increase in net assets resulting from
operations $5,953,321
==========
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See notes to financial statements
-4-
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Years ended October 31,
- ------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
1998 1997
---- ----
OPERATIONS
Net investment loss $(581,423) $(534,442)
Net realized gain on investments 5,919,837 3,495,771
Capital gain distributions from regulated
investment companies 5,157,916 4,265,671
Net unrealized appreciation (depreciation)
of investments (4,543,009) 9,418,790
---------- ---------
Net increase in net assets
resulting from operations 5,953,321 16,645,790
DISTRIBUTIONS TO SHAREHOLDERS
Realized gains on investments
($1.46 and $2.03 per share, respectively) (7,850,147) (9,266,183)
CAPITAL SHARE TRANSACTIONS
Increase in net assets from capital
share transactions (a) 13,669,847 8,270,367
---------- ---------
TOTAL INCREASE IN NET ASSETS 11,773,021 15,649,974
NET ASSETS
Beginning of period 78,391,331 62,741,357
---------- ----------
End of period $90,164,352 $78,391,331
=========== ===========
(a) Summary of capital share transactions is as follows:
1998 1997
--------------------------------------------------
Shares Value Shares Value
Shares sold 943,259 $13,807,429 426,511 $5,744,452
Shares issued on
reinvestment
of distributions 541,907 7,364,519 757,190 8,965,128
------- --------- ------- ---------
1,485,166 21,171,948 1,183,701 14,709,580
Shares redeemed (523,418) (7,502,101) (481,607) (6,439,213)
-------- ---------- -------- ----------
Net increase 961,748 $ 13,669,847 702,094 $ 8,270,367
========== =========== ======== ===========
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See notes to financial statements
-5-
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
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(For a Share Outstanding Throughout each Period)
Years ended October 31,
1998 1997 1996 1995 1994
-------- -------- ------- ------- ------
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning
of period $14.67 $13.51 $13.12 $12.31 $12.74
----- ----- ----- ------ ------
Income (loss) from
investment operations
Net investment loss (0.09) (0.10) (0.09) (0.06) (0.08)
Net gain on securities
(both realized
and unrealized) 1.18 3.29 1.90 2.16 0.64
---- ---- ----- ---- ----
Total from investment operations 1.09 3.19 1.81 2.10 0.56
---- ---- ----- ---- ----
Less distributions
Distributions from capital gains (1.46) (2.03) (1.42) (1.29) (0.99)
Net asset value, end of period $14.30 $14.67 $13.51 $13.12 $12.31
====== ====== ====== ====== ======
TOTAL RETURN 7.97% 27.22% 14.91% 19.60% 4.70%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year $90,164 $78,391 $62,741 $50,889 $37,968
Ratio of expenses to
average net assets 1.44% 1.43% 1.47% 1.61% 1.60%
Ratio of net investment loss to
average net assets -0.67% -0.76% -0.69% -0.52% -0.68%
Portfolio turnover 102% 93% 214% 206% 107%
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See notes to financial statements
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<PAGE>
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
October 31, 1998
- ------------------------------------------------------------------------------
Issuer Shares Value
INVESTMENT COMPANIES - 99.9%
Growth and Income Funds - 32.0%
Firstar Growth & Income 16,927 $751,734
Mutual Shares - Z 652 12,900
Goldman Sachs Core U.S. Equity - A 50,541 1,416,675
Lexington Corporate Leaders 111,761 1,686,477
Lexington Growth & Income 31,258 670,177
Marsico Growth & Income 120,168 1,446,818
MFS Massachusetts Inv. - A 209,116 4,002,485
SEI Index S&P 500 Index - E 51,118 1,768,686
Vanguard Index 500 60,901 6,229,004
---------
17,984,956
Growth Funds - 18.9%
Legg Mason Value Prime 45,314 2,316,000
Longleaf Partners 603 16,406
MFS Research - A 89,427 2,029,099
Oak Value 38,024 913,715
Vanguard Index Growth 82,015 2,272,631
Vanguard U.S. Growth 88,864 3,063,134
---------
10,610,985
Small Company Funds - 5.7%
Eclipse Equity 55,721 742,204
Nicholas II 53,285 1,942,256
Safeco Growth 25,338 535,895
--------
3,220,355
Convertible Security Funds - 2.3%
MainStay Convertible - A 405 5,228
Pacific Horizon Capital Income - A 54,169 859,668
Victory Convertible Securities 33,319 407,157
--------
1,272,053
General Corporate Bond Funds - 3.3%
Strong Corporate Bond 158,500 1,757,767
Vanguard Fixed Income Long Term Corporate 11,682 108,175
--------
1,865,942
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See notes to financial statements
-7-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS - (Continued)
October 31, 1998
- ------------------------------------------------------------------------------
Issuer Shares Value
Government Treasury Bond Funds - 14.0%
American Century Benham Target Maturities 2015 21,524 1,037,882
American Century Benham Target Maturities 2005 30,555 2,324,630
American Century Benham Target Maturities 2010 49,565 2,992,717
Vanguard Fixed Income Intermediate Term U.S. 136,863 1,538,341
---------
7,893,570
High Quality Bond Funds - 3.9%
Dodge & Cox Income 109,384 1,337,763
Scudder Income 61,463 829,752
--------
2,167,515
High Yield Bond Funds - 8.7%
MainStay High Yield Corporate Bond 381,901 2,795,519
Northeast Investors 199,021 2,057,874
---------
4,853,393
Worldwide Bond Funds - 11.1%
PIMCO Foreign Institutional 266,975 2,869,986
PIMCO Global Institutional 333,334 3,376,672
---------
6,246,658
Total investment companies
(Cost $52,685,200) 99.9% 56,115,427
Cash and other assets
in excess of liabilities 0.1% 75,007
------ -----------
Net assets 100.0% $56,190,434
====== ===========
Cost for federal income tax at
October 31, 1998 was $52,685,200
and net unrealized appreciation
consisted of:
Gross unrealized appreciation $4,833,836
Gross unrealized depreciation (1,403,609)
----------
Net unrealized appreciation $3,430,227
==========
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See notes to financial statements
-8-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
October 31, 1998
- ------------------------------------------------------------------------------
ASSETS
Investments, at value (Cost $52,685,200) (Note 1A) $56,115,427
Cash 115,107
Receivables for
Dividends and interest 41,200
-----------
Total assets 56,271,734
LIABILITIES
Payable for
Investment advisory fee 45,809
Administrative fee 3,450
Capital stock redeemed 17,273
Accrued expenses 14,768
----------
Total liabilities 81,300
NET ASSETS
(applicable to 4,379,081
outstanding shares; unlimited number
of shares of beneficial interest
authorized, $.01 par value. $56,190,434
===========
Net asset value, offering price and
redemption price per share
($56,190,434/4,379,081 shares
of beneficial interest outstanding) $12.83
======
Net assets consist of:
Undistributed net realized gain on investments $4,357,760
Unrealized appreciation of investments 3,430,227
Paid-in capital 48,402,447
----------
Total net assets $56,190,434
===========
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See notes to financial statements
-9-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
STATEMENT OF OPERATIONS
Year ended October 31, 1998
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest $ 2,127
Dividends 1,580,613
---------
Total investment income 1,582,740
Expenses
Distribution costs (Note 3) 87,095
Investment advisory fees (Note 2) 533,425
Transfer agent fees 31,629
Legal and audit fees 18,939
Custody and accounting fees 54,922
Registration and filing fees 4,684
Administration fee (Note 2) 41,385
Trustees' fees 3,041
Other 2,759
--------
Total expenses 777,879
--------
Net investment income 804,861
--------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 2,740,780
Capital gain distributions from
regulated investment companies 2,252,579
Net unrealized depreciation of
investments during the year (2,511,268)
-----------
Net realized and unrealized gain on investments 2,482,091
-----------
Net increase in net assets resulting
from operations $3,286,952
===========
- ------------------------------------------------------------------------------
See notes to financial statements
-10-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
Years ended October 31,
- ------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
1998 1997
---- ----
OPERATIONS
Net investment income $804,861 $718,507
Net realized gain on investments 2,740,780 999,388
Capital gain distributions from regulated
investment companies 2,252,579 2,526,932
Net unrealized appreciation
(depreciation) of investments (2,511,268) 3,903,156
---------- ---------
Net increase in net assets
resulting from operations 3,286,952 8,147,983
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income
($0.21 and $0.21 per share, respectively) (804,861) (718,507)
Realized gains on investments
($1.06 and $0.99 per share, respectively) (3,906,114) (3,340,142)
CAPITAL SHARE TRANSACTIONS
Increase in net assets
from capital share transactions (a) 8,721,229 4,381,059
---------- ----------
TOTAL INCREASE IN NET ASSETS 7,297,206 8,470,393
========== ==========
NET ASSETS
Beginning of period 48,893,228 40,422,835
---------- ----------
End of period $56,190,434 $48,893,228
=========== ===========
(a) Summary of capital share transactions is as follows:
1998 1997
----------------------------------------------
Shares Value Shares Value
Shares sold 689,907 $8,996,626 446,249 $ 5,543,984
Shares issued on
reinvestment of
distributions 342,996 4,273,243 330,831 3,867,560
------- --------- ------- ---------
1,032,903 13,269,869 777,080 9,411,544
Shares redeemed (348,325) (4,548,640) (392,858) (5,030,485)
-------- ---------- -------- ----------
Net increase 684,578 $ 8,721,229 384,222 $ 4,381,059
======== =========== ======== ===========
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See notes to financial statements
-11-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
(For a Share Outstanding Throughout each Period)
Years ended October 31,
1998 1997 1996 1995 1994
------ ----- ------ ----- -----
PER SHARE OPERATING PERFORMANCE
Net asset value,
beginning of $eriod $13.23 $12.21 $11.82 $11.22 $11.94
------ ----- ----- ------ ------
Income from investment operations
Net investment income 0.21 0.21 0.18 0.24 0.20
Net gain (loss) on securities
(both realized and unrealized) 0.66 2.01 1.30 1.28 (0.05)
---- ---- ----- ---- -----
Total from investment operations 0.87 2.22 1.48 1.52 0.15
---- ---- ----- ---- -----
Less distributions
Dividends from net
investment income ( 0.21) (0.21) (0.18) (0.24) (0.19)
Distributions from
capital gains (1.06) (0.99) (0.91) (0.68) (0.68)
------ ------ ------ ------ ------
Total distributions (1.27) (1.20) (1.09) (0.92) (0.87)
------ ------ ------ ------ ------
Net asset value,
end of period $12.83 $13.23 $12.21 $11.82 $11.22
====== ====== ====== ====== ======
TOTAL RETURN 6.97% 19.64% 13.24% 14.93% 1.26%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year $56,190 $48,893 $40,423 $30,124 $23,803
Ratio of expenses to
average net assets 1.46% 1.41% 1.61% 1.72% 1.73%
Ratio of net investment
income to average
net assets 1.51% 1.58% 1.45% 2.14% 1.57%
Portfolio turnover 59% 80% 172% 191% 130%
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See notes to financial statements
-12-
<PAGE>
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
October 31, 1998
- ------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
New Century Portfolios ("New Century", formerly Weston Portfolios) 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 Capital Portfolio and New Century Balanced Portfolio (formerly New
Century I Portfolio) (together, "the Portfolios"). The investment objective
of the New Century Capital Portfolio is to provide capital growth, with a
secondary objective to provide income, while managing risk. This Portfolio
seeks to achieve these objectives by investing primarily in shares of other
registered investment companies that emphasize investments in equities
(domestic and foreign). The investment objective of New Century Balanced
Portfolio is to provide income, with a secondary objective to provide
capital growth, while managing risk. This Portfolio seeks to achieve these
objectives by investing primarily in shares of other registered investment
companies that emphasize investments in equities (domestic and foreign), and
fixed income securities (domestic and foreign). 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.
- ------------------------------------------------------------------------------
-13-
<PAGE>
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - (Continued)
October 31, 1998
- ------------------------------------------------------------------------------
(2) INVESTMENT ADVISORY FEE, ADMINISTRATIVE AGREEMENT AND TRUSTEES' FEE
Fees paid by the Portfolios pursuant to a contract (the "Investment Advisory
Agreement") with Weston Financial Group, Inc. (the "Advisor") 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.
Fees paid by the Portfolio pursuant to a contract (the "Administration
Agreement") with the Advisor to administer the ordinary course of the
Portfolios' business are paid monthly from a detail of actual expenses
incurred in the overseeing of the Portfolios' affairs. All expenses incurred
overseeing the Portfolios' affairs are reimbursed monthly.
The Portfolios pay each Trustee who is not affiliated with the Advisor
$3,000 annually.
(3) DISTRIBUTION PLAN AND OTHER TRANSACTIONS WITH AFFILIATES
The Portfolios have adopted a Distribution Plan (the "Plan") under Section
12(b) of the Investment Company Act of 1940 and Rule 12(b)-1 thereunder.
Under the plan, each Portfolio may pay up to .25% of its average daily net
assets to Weston Securities Corporation (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 year ended October 31, 1998, the Distributor received sales
commissions and other compensation of $56,576 and $38,766 in connection with
the purchase of investment company shares by New Century Capital Portfolio
and New Century Balanced 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 the
Advisor and the Distributor.
(4) INVESTMENT TRANSACTIONS
For the year ended October 31, 1998, the cost of purchases and the proceeds
from sales of securities other than short-term notes were as follows:
Purchases Sales
New Century Capital Portfolio $99,263,222 $88,289,211
New Century Balanced Portfolio $38,288,357 $31,266,792
- ------------------------------------------------------------------------------
-14-
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Shareholders and Board of Trustees
New Century Portfolios
Wellesley, Massachusetts
We have audited the statements of assets and liabilities of New Century
Portfolios (formerly Weston Portfolios, comprising, respectively, the New
Century Capital Portfolio and the New Century Balanced Portfolio, formerly
the New Century I Portfolio), including the portfolios of investments, as of
October 31, 1998, and the related statement of operations for the year then
ended, and the statements of changes in net assets and the financial
highlights for each of the two years in the period then ended. These
financial statements and financial highlights are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits. The
financial highlights for each of the three years in the period ended October
31, 1996 were audited by other auditors whose report dated November 22, 1996,
expressed an unqualified opinion on the financial highlights.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1998 by correspondence with the custodian.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of New
Century Portfolios as of October 31, 1998, the results of its operations for
the year then ended, and the changes in its net assets and the financial
highlights for each of the two years in the period then ended, in conformity
with generally accepted accounting principles.
BRIGGS, BUNTING & DOUGHERTY, LLP
Philadelphia, Pennsylvania
November 25, 1998
<PAGE>
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.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary information extracted from the
Registrant's Annual Report to Shareholders dated October 31, 1998 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000838802
<NAME> NEW CENTURY PORTFOLIOS
<SERIES>
<NUMBER> 2
<NAME> NEW CENTURY BALANCED PORTFOLIO
<MULTIPLIER> 1
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<S> <C>
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<PERIOD-END> OCT-31-1998
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<INVESTMENTS-AT-COST> 52,685,200
<INVESTMENTS-AT-VALUE> 56,115,427
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<NET-ASSETS> 56,190,434
<DIVIDEND-INCOME> 1,580,613
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<OTHER-INCOME> 0
<EXPENSES-NET> 777,879
<NET-INVESTMENT-INCOME> 804,861
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<APPREC-INCREASE-CURRENT> (2,511,268)
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<GROSS-EXPENSE> 777,879
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<PER-SHARE-NAV-BEGIN> 13.23
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This schedule contains summary information extracted from the
Registrant's Annual Report to Shareholders dated October 31, 1998 and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000838802
<NAME> NEW CENTURY PORTFOLIOS
<SERIES>
<NUMBER> 1
<NAME> NEW CENTURY CAPITAL PORTFOLIO
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 12-MOS
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<PERIOD-START> NOV-01-1997
<PERIOD-END> OCT-31-1998
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<INVESTMENTS-AT-COST> 82,382,055
<INVESTMENTS-AT-VALUE> 90,594,408
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<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 90,595,940
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<OTHER-ITEMS-LIABILITIES> 431,588
<TOTAL-LIABILITIES> 431,588
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<PAID-IN-CAPITAL-COMMON> 72,550,869
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</TABLE>
