SEMI-ANNUAL REPORT
SIX MONTHS ENDED APRIL 30, 1999
<PAGE>
NEW CENTURY PORTFOLIOS
CONTENTS
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PRESIDENT'S LETTER 1
NEW CENTURY CAPITAL PORTFOLIO
Portfolio of Investments
April 30, 1999 2
Statement of Assets and Liabilities
April 30, 1999 4
Statement of Operations
Six months ended April 30, 1999 5
Statement of Changes in Net Assets
Six months ended April 30, 1999 and year ended October 31, 1998 6
Financial Highlights
Six months ended April 30, 1999 and
each of the five years in the period ended October 31, 1998 7
NEW CENTURY BALANCED PORTFOLIO
Portfolio of Investments
April 30, 1999 8
Statement of Assets and Liabilities
April 30, 1999 10
Statement of Operations
Six months ended April 30, 1999 11
Statement of Changes in Net Assets
Six months ended April 30, 1999 and year ended October 31, 1998 12
Financial Highlights
Six months ended April 30, 1999 and
each of the five years in the period ended October 31, 1998 13
NEW CENTURY CAPITAL AND BALANCED PORTFOLIOS
Notes to Financial Statements 14
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<PAGE>
PRESIDENT'S LETTER
Dear Fellow Shareholders:
During the six-month period ended April 30, 1999, the capital markets
orchestrated a dramatic comeback. Just a few weeks before the start of the
period, the equity markets were trading at 20% to 25% discounts from their July
1998 peaks.
During the period, the Standard & Poor's 500 Composite Stock Price Index, which
reflects the performance of the stocks of the largest domestic companies, gained
22.31%. The Russell 2000 Index, which reflects the performance of the stocks of
smaller-capitalized domestic companies, posted a more modest gain of 14.50%.
Even the international equity markets, measured by the Morgan Stanley Capital
International-Europe, Australasia, Far East Index, gained 22.40%. The Lehman
Brothers Aggregate Bond Index declined 1.16%.
I am pleased to report that during the period, the New Century Portfolios
produced levels of investment return consistent with their fund's investment
objective. For the six-month period ended April 30, 1999, the New Century
Capital Fund generated a return of 24.31%; the New Century Balanced Fund
produced a return of 13.95%. The three-year Beta was 0.93% for the Capital Fund
and 0.61% for the Balanced 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 decrease less than the index
during a declining market and to increase 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. Toward the end of the period, however, we began to shift our allocation
to value and to smaller capitalized companies. Sector allocation also led us to
concentrate our fixed-income investments in the high yield and the convertible
sectors.
Although we may experience short-term volatility, our long-term investment
outlook remains positive. We will continue to monitor the rotation to the value
and the smaller capitalized companies. If the rotation persists, we will
continue to shift the funds' allocation accordingly. We thank you for selecting
us to be part of your long-term investment strategy.
Sincerely,
/s/ Wayne M. Grzecki
Wayne M. Grzecki
President
Average Annual Total Return For The Period Ended 4/30/99
1 Year 5 Years Since Inception (1/31/89)
------ ------- ------------------------
New Century Capital 15.81% 19.59% 14.49%
New Century Balanced 8.98% 14.27% 11.43%
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 1999 (Unaudited)
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<TABLE>
<S> <C> <C>
Issuer Shares Value
INVESTMENT COMPANIES - 99.5%
Aggressive Funds - 11.5%
Janus Olympus Fund 122,220 $ 4,192,157
Oppenheimer Capital Appreciation 92,766 4,054,785
Rydex OTC 51,396 2,475,237
Transamerica Premier Aggressive Growth 89,827 2,484,607
----------------
13,206,786
----------------
Foreign Stock Funds - 3.0%
Artisan International 184,533 3,404,636
----------------
Growth and Income Funds - 35.0%
Citizens Index Fund 35,603 860,525
Goldman Sachs Core U.S. Equity-A 200,142 6,920,905
Marsico Growth & Income 466,481 7,645,620
SEI Index S&P 500 Index-E 92,981 3,874,533
Strong Growth & Income 59,548 1,411,294
Vanguard 500 Index 155,748 19,231,728
----------------
39,944,605
----------------
Growth Funds - 44.8%
Janus 233,952 8,871,433
Legg Mason Value Prime 183,464 13,882,725
Longleaf Partners 129,608 3,829,893
Performance Large Cap Equity 144,524 4,205,643
Vanguard Growth Index 304,542 10,232,626
Vanguard U.S. Growth 197,873 7,639,891
Vanguard Value Index 100,881 2,449,403
----------------
51,111,614
----------------
Small Company Funds - 5.2%
Eclipse Small Cap Value 240,955 2,816,769
Mutual Discovery-Z 1,336 25,632
Nicholas II 85,424 3,108,575
State Street Research Aurora 500 8,850
----------------
5,959,826
----------------
Total investment companies (Cost $88,281,934) 99.5% 113,627,467
Cash and other assets in excess of liabilities 0.5% 589,014
--------- ----------------
Net assets 100.0% $ 114,216,481
========= ================
</TABLE>
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See notes to financial statements
-2-
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
PORTFOLIO OF INVESTMENTS - (Continued)
April 30, 1999 (Unaudited)
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Cost for federal income tax at April 30, 1999 was $88,281,934 and net unrealized
appreciation consisted of:
Gross unrealized appreciation $ 25,841,830
Gross unrealized depreciation (496,297)
--------------
Net unrealized appreciation $ 25,345,533
==============
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See notes to financial statements
-3-
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
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ASSETS
Investments, at value (Cost $88,281,934) (Note 1A) $ 113,627,467
Cash 728,380
Receivable for
Investment securities sold 2,790,421
Capital stock sold 146,412
Dividends and interest 9,645
----------------
Total assets 117,302,325
LIABILITIES
Payable for
Investment securities purchased 2,809,645
Capital stock redeemed 175,013
Accrued expenses 101,186
----------------
Total liabilities 3,085,844
NET ASSETS
(applicable to 7,089,074 outstanding shares; unlimited number
of shares of beneficial interest authorized,
$.01 par value.) $ 114,216,481
================
Net asset value, offering price and redemption price per share
($114,216,481/7,089,074
shares of beneficial interest outstanding) $16.11
======
Net assets consist of:
Paid-in capital $ 84,103,162
Unrealized appreciation of investments 25,345,533
Undistributed net realized gain on investments 5,141,003
Accumulated net investment deficit (373,217)
----------------
Total net assets $ 114,216,481
================
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See notes to financial statements
-4-
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
STATEMENT OF OPERATIONS
Six months ended April 30, 1999 (Unaudited)
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NET INVESTMENT LOSS
Income
Interest $ 9,898
Dividends 306,271
--------------
Total investment income 316,169
Expenses
Distribution costs (Note 3) 67,240
Investment advisory fees (Note 2) 511,894
Transfer agent fees 15,750
Legal and audit fees 13,750
Custody and accounting fees 34,200
Administration fee (Note 2) 33,000
Trustees' fees 3,200
Registration and filing fees 4,552
Insurance 3,867
Other 1,933
--------------
Total expenses 689,386
Net investment loss (373,217)
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 2,816,768
Capital gain distributions from regulated
investment companies 2,743,846
Net unrealized appreciation of investments during the year 17,133,180
--------------
Net realized and unrealized gain on investments 22,693,794
--------------
Net increase in net assets resulting from operations $ 22,320,577
==============
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See notes to financial statements
-5-
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
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INCREASE (DECREASE) IN NET ASSETS
<TABLE>
<S> <C> <C>
Six months Year ended
ended April 30, October 31,
1999 1998
-------------------- ---------------
(Unaudited)
OPERATIONS
Net investment loss $ (373,217) $ (581,423)
Net realized gain on investments 2,816,768 5,919,837
Capital gain distributions from regulated
investment companies 2,743,846 5,157,916
Net unrealized appreciation (depreciation)
of investments 17,133,180 (4,543,009)
---------------- --------------
Net increase in net assets resulting from operations 22,320,577 5,953,321
DISTRIBUTIONS TO SHAREHOLDERS
Realized gains on investments
($1.53 and $1.46 per share, respectively) (9,820,741) (7,850,147)
CAPITAL SHARE TRANSACTIONS
Increase in net assets from capital share transactions (a) 11,552,293 13,669,847
---------------- --------------
TOTAL INCREASE IN NET ASSETS 24,052,129 11,773,021
NET ASSETS
Beginning of period 90,164,352 78,391,331
---------------- --------------
End of period (including accumulated net investment
deficit of $(373,217) and $-0-, respectively) $ 114,216,481 $ 90,164,352
=============== ==============
</TABLE>
(a) Summary of capital share transactions is as follows:
<TABLE>
<S> <C> <C>
Six months ended Year ended
April 30, 1999 (Unaudited) October 31, 1998
Share Value Share Value
Shares sold 716,038 $ 10,979,393 943,259 $ 13,807,429
Shares issued on
reinvestment of distributions 631,817 9,357,214 541,907 7,364,519
------------ --------------- ------------ --------------
1,347,855 20,336,607 1,485,166 21,171,948
Shares redeemed (565,794) (8,784,314) (523,418) (7,502,101)
------------ --------------- ------------ --------------
Net increase 782,061 $ 11,552,293 961,748 $ 13,669,847
============ =============== ============ ==============
</TABLE>
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See notes to financial statements
-6-
<PAGE>
NEW CENTURY CAPITAL PORTFOLIO
FINANCIAL HIGHLIGHTS
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(For a Share Outstanding Throughout each Period)
Six Months
ended
April 30, Years ended
October 31,
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995 1994
--------- ------ ------ ------ ------- -------
(Unaudited)
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $14.30 $14.67 $13.51 $13.12 $ 12.31 $ 12.74
------ ------ ------ ------ ------- -------
Income (loss) from investment operations
Net investment loss (0.05) (0.09) (0.10) (0.09) (0.06) (0.08)
Net gain on securities
(both realized and unrealized) 3.39 1.18 3.29 1.90 2.16 0.64
------ ------ ------ ------ ------- -------
Total from investment operations 3.34 1.09 3.19 1.81 2.10 0.56
------ ------ ------ ------ ------- -------
Less distributions
Distributions from capital gains (1.53) (1.46) (2.03) (1.42) (1.29) (0.99)
------ ------ ------ ------ ------- -------
Net asset value, end of period $16.11 $14.30 $14.67 $13.51 $ 13.12 $ 12.31
====== ====== ====== ====== ======= =======
TOTAL RETURN** 24.31 % 7.97 % 27.22 % 14.91 % 19.60 % 4.70 %
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in thousands) $ 114,216 $90,164 $78,391 $62,741 $ 50,889 $ 37,968
Ratio of expenses to
average net assets 1.33 % * 1.44 % 1.43 % 1.47 % 1.61 % 1.60 %
Ratio of net investment loss to
average net assets -0.72 % * -0.67 % -0.76 % -0.69 % -0.52 % -0.68 %
Portfolio turnover 32 % 102 % 93 % 214 % 206 % 107 %
</TABLE>
* Annualized.
** Total return for a period of less than 1 year has not been annualized.
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See notes to financial statements
-7-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS
April 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Issuer Shares Value
INVESTMENT COMPANIES - 99.6%
Foreign Stock Funds - 2.0%
Artisan International 70,614 $ 1,302,825
--------------
Growth and Income Funds - 31.3%
Citizens Index Fund 33,037 798,498
Goldman Sachs Core US Equity-A 51,326 1,774,850
Lexington Corporate Leaders 112,576 1,983,583
Lexington Growth & Income 34,795 792,980
Marsico Growth & Income 120,168 1,969,547
Mutual Discovery Z 702 15,510
SEI Index S&P 500 Index-E 51,875 2,161,634
Strong Growth & Income 118,382 2,805,645
Vanguard 500 Index 61,725 7,621,748
--------------
19,923,995
Growth Funds - 22.9%
Janus 88,802 3,367,386
Legg Mason Value Prime 62,510 4,730,146
Vanguard Index Growth 82,960 2,787,460
Vanguard U.S. Growth 95,227 3,676,735
--------------
14,561,727
Small Company Funds - 6.2%
Berger Small Cap 48,614 1,002,430
Eclipse Small Cap Value 68,530 801,112
Nicholas II 59,678 2,171,667
--------------
3,975,209
Convertible Security Funds - 3.7%
MainStay Convertible A 435 5,825
Northern Income Equity 55,433 726,178
Pacific Horizon Capital 64,860 1,172,672
Victory Convertible Securities 34,329 457,261
--------------
2,361,936
General Corporate Bond Funds - 2.9%
Strong Corporate Bond 163,753 1,822,573
--------------
Government Treasury Bond Funds - 4.0%
American Century - Benham Target Maturities 2005 25,227 1,870,866
American Century - Benham Target Maturities 2010 9,289 537,945
Vanguard Fixed Income Intermediate Term U.S. 11,627 125,106
--------------
2,533,917
--------------
</TABLE>
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See notes to financial statements
-8-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
PORTFOLIO OF INVESTMENTS - (Continued)
April 30, 1998 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Issuer Shares Value
High Quality Bond Funds - 3.5%
Dodge & Cox Income 113,121 1,361,977
Scudder Income 64,485 841,529
--------------
2,203,506
High Yield Bonds - 13.9%
MainStay High Yield Corporate Bond 575,929 4,526,804
Northeast Investors 401,940 4,348,993
--------------
8,875,797
Worldwide Bond Funds - 9.2%
PIMCO Foreign Bond 282,943 3,033,153
PIMCO Global Bond 287,592 2,798,274
--------------
5,831,427
Total investment companies (Cost $55,663,377) 99.6% 63,392,912
Cash and other assets in excess of liabilities 0.4% 237,103
--------- --------------
Net assets 100.0% $ 63,630,015
========= ==============
Cost for federal income tax at April 30, 1999 was $55,663,377 and net unrealized
appreciation consisted of:
Gross unrealized appreciation $ 8,200,943
Gross unrealized depreciation (471,408)
-------------
Net unrealized appreciation $ 7,729,535
=============
</TABLE>
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See notes to financial statements
-9-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
STATEMENT OF ASSETS AND LIABILITIES
April 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
ASSETS
Investments, at value (Cost $55,663,377) (Note 1A) $ 63,392,912
Cash 751,045
Receivables for
Capital stock sold 697
Dividends and interest 88,473
---------------
Total assets 64,233,127
LIABILITIES
Payable for
Capital stock redeemed 27,534
Securities purchased 518,082
Accrued expenses 57,496
---------------
Total liabilities 603,112
NET ASSETS
(applicable to 4,758,639 outstanding shares;
unlimited number of shares of beneficial interest
authorized, $.01 par value.) $ 63,630,015
==============
Net asset value, offering price and redemption
price per share ($63,630,015/4,758,639 shares of
beneficial interest outstanding) $13.37
======
Net assets consist of:
Paid-in capital $ 53,260,982
Unrealized appreciation of investments 7,729,535
Undistributed net realized gain on investments 2,564,038
Undistributed net investment income 75,460
--------------
Total net assets $ 63,630,015
==============
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See notes to financial statements
-10-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
STATEMENT OF OPERATIONS
Six months ended April 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest $ 6,431
Dividends 1,186,406
-------------
Total investment income 1,192,837
Expenses
Distribution costs (Note 3) 47,876
Investment advisory fees (Note 2) 299,224
Transfer agent fees 15,600
Legal and audit fees 11,000
Custody and accounting fees 27,600
Registration and filing fees 5,395
Administration fee (Note 2) 20,700
Trustees' fees 2,600
Insurance 2,200
Other 1,326
-------------
Total expenses 433,521
Net investment income 759,316
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 1,554,523
Capital gain distributions from regulated
investment companies 1,195,520
Net unrealized appreciation of investments
during the year 4,299,308
-------------
Net realized and unrealized gain on investments 7,049,351
-------------
Net increase in net assets resulting from operations $ 7,808,667
=============
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See notes to financial statements
-11-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
Six months Year ended
ended April 30, October 31,
1999 1998
------------------ ---------------
(Unaudited)
OPERATIONS
Net investment income $ 759,316 $ 804,861
Net realized gain on investments 1,554,523 2,740,780
Capital gain distributions from regulated
investment companies 1,195,520 2,252,579
Net unrealized appreciation of investments 4,299,308 (2,511,268)
-------------- --------------
Net increase in net assets resulting from operations 7,808,667 3,286,952
DISTRIBUTIONS TO SHAREHOLDERS
Net investment income
($0.16 and $0.21 per share, respectively) (683,856) (804,861)
Realized gains on investments
($1.03 and $1.06 per share, respectively) (4,543,765) (3,906,114)
CAPITAL SHARE TRANSACTIONS
Increase in net assets from capital share transactions (a) 4,858,535 8,721,229
-------------- --------------
TOTAL INCREASE IN NET ASSETS 7,439,581 7,297,206
NET ASSETS
Beginning of period 56,190,434 48,893,228
-------------- --------------
End of period (including undistributed net investment
income of $75,460 and $-0-, respectively) $ 63,630,015 $ 56,190,434
============== ==============
</TABLE>
(a) Summary of capital share transactions is as follows:
<TABLE>
<S> <C> <C>
Six months ended Year ended
April 30, 1999 (Unaudited) October 31, 1998
Share Value Share Value
Shares sold 311,883 $ 4,091,468 689,907 $ 8,996,626
Shares issued on
reinvestment of distributions 378,527 4,827,067 342,996 4,273,243
---------- --------------- ----------- --------------
690,410 8,918,535 1,032,903 13,269,869
Shares redeemed (310,852) (4,060,000) (348,325) (4,548,640)
---------- --------------- ----------- --------------
Net increase 379,558 $ 4,858,535 684,578 $ 8,721,229
========== =============== =========== =============
</TABLE>
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See notes to financial statements
-12-
<PAGE>
NEW CENTURY BALANCED PORTFOLIO
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------
(For a Share Outstanding Throughout each Period)
Six Months
ended
April 30, Years ended October 31,
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995 1994
(Unaudited)
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of period $ 12.83 $ 13.23 $ 12.21 $ 11.82 $11.22 $11.94
------- ------- ------- ------- ------ ------
Income from investment operations
Net investment income (loss) 0.18 0.21 0.21 0.18 0.24 0.20
Net gain (loss) on securities
(both realized and unrealized) 1.55 0.66 2.01 1.30 1.28 (0.05)
------- ------- ------- ------- ------ ------
Total from investment operations 1.73 0.87 2.22 1.48 1.52 0.15
------- ------- ------- ------- ------ ------
Less distributions
Dividends from net investment income (0.16) (0.21) (0.21) (0.18) (0.24) (0.19)
Distributions from capital gains (1.03) (1.06) (0.99) (0.91) (0.68) (0.68)
------- ------- ------- ------- ------ ------
Total distributions (1.19) (1.27) (1.20) (1.09) (0.92) (0.87)
------- ------- ------- ------- ------ ------
Net asset value, end of period $ 13.37 $ 12.83 $ 13.23 $ 12.21 $11.82 $11.22
======= ======= ======= ======= ====== ======
TOTAL RETURN** 13.95 % 6.97 % 19.64 % 13.24 % 14.93 % 1.26 %
RATIOS/SUPPLEMENTAL DATA
Net assets, end of year (in thousands) $ 63,630 $ 56,190 $ 48,893 $ 40,423 $30,124 $23,803
Ratio of expenses to
average net assets 1.45 % * 1.46% 1.41 % 1.61 % 1.72 % 1.73 %
Ratio of net investment income to
average net assets 2.54 % * 1.51% 1.58 % 1.45 % 2.14 % 1.57 %
Portfolio turnover 31 % 59% 80 % 172 % 191 % 130 %
</TABLE>
* Annualized.
** Total return for a period of less than 1 year has not been annualized.
- -------------------------------------------------------------------------------
See notes to financial statements
-13-
<PAGE>
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS
April 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
(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 its objective 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
specific identification 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 between each Portfolio in relation to the
net assets of each Portfolio.
- -------------------------------------------------------------------------------
-14-
<PAGE>
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - (Continued)
April 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
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, 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
$4,000 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 six months ended April 30, 1999, the Distributor received sales
commissions and other compensation of $37,862 and $20,935 in connection
with the purchase of investment company shares by New Century Capital
Portfolio and New Century Balanced Portfolio, respectively. Weston
Securities Corporation 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.
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-15-
<PAGE>
NEW CENTURY PORTFOLIOS
NOTES TO FINANCIAL STATEMENTS - (Continued)
April 30, 1999 (Unaudited)
- -------------------------------------------------------------------------------
(4) INVESTMENT TRANSACTIONS
For the six months ended April 30, 1999, 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 $36,370,362 $33,286,006
New Century Balanced Portfolio $20,572,190 $19,148,537
- -------------------------------------------------------------------------------
-16-
<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.
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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<DIVIDEND-INCOME> 306,271
<INTEREST-INCOME> 9,898
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<EXPENSES-NET> 689,386
<NET-INVESTMENT-INCOME> (373,217)
<REALIZED-GAINS-CURRENT> 5,560,614
<APPREC-INCREASE-CURRENT> 17,133,180
<NET-CHANGE-FROM-OPS> 22,320,577
<EQUALIZATION> 0
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<NUMBER-OF-SHARES-SOLD> 716,083
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