ANNUAL REPORT - GlobeNewswire

PlcJanusWorldFunds

31 December, 2005(audited)

FUNDAMENTAL EQUITY &BALANCED FUNDS

Balanced FundGlobal Fundamental Equity Fund

Global Life Sciences FundGlobal Technology Fund

US All Cap Growth FundUS Fundamental Equity Fund

US Strategic Value FundUS Twenty FundUS Venture Fund

US Value Fund

RISK MANAGED EQUITY FUNDSUS Risk Managed Core Fund

PROPERTY SECURITIES FUNDSUS REIT Fund

FIXED INCOME FUNDSUS Flexible Income Fund

US High Yield FundUS Short-Term Bond Fund

CURRENCY RESERVE FUNDSEuro Reserve Fund

US Dollar Reserve Fund

(Janus World Funds Plc is an investment company with variable capital incorporated with limitedliability in Ireland under registration number 296610 and established as an umbrella fund)

ANNUAL REPORT

Table of Contents

Fund Performance ********************************* 1

Fund Expense Limits and Total Expense Ratios ********** 4

Background of the Company************************* 5

Report of the Directors ***************************** 9

Market and Fund Overviews************************* 10

Portfolio Investments******************************* 19

Balance Sheet ************************************* 66

Income Statement ********************************* 68

Statements of Changes in Net Assets Attributable toHolders of Redeemable Ordinary Shares************** 70

Notes to the Financial Statements ********************* 72

Explanation of Charts and Tables ********************* 92

Statements of Changes in Composition of Portfolio ******* 93

Report of the Custodian*****************************101

Independent Auditors’ Report ************************102

Directors and Other Information**********************103

Fund Performance

TOTAL RETURNS(a)

As at 31 December 2005

2005 Since SinceOne Year Three Year Five Year Inception Inception

Inception Date Annualised Annualised Annualised Annualised Cumulative

Balanced FundClass A$ ******************************** 24 December 1998 6.56% 8.67% 2.06% 4.17% 33.20%Class B$ ******************************** 24 December 1998 5.50% 7.57% 1.08% 3.18% 24.60%Class I$ ********************************* 31 December 1999 7.47% 9.58% 2.94% 2.31% 14.71%Class A4 ******************************** 31 December 1999 4.92% 8.67% 2.36% 3.99% 26.44%Class B4********************************* 31 December 1999 3.81% 7.57% 1.37% 3.09% 20.03%

Global Fundamental Equity Fund(b)

Class A$ ******************************** 31 October 2001 2.05% 16.01% NA 9.16% 44.10%Class B$ ******************************** 31 October 2001 1.02% 14.85% NA 8.09% 38.30%Class I$ ********************************* 31 October 2001 3.02% 17.16% NA 10.25% 50.20%Class A4 ******************************** 31 October 2001 0.15% 15.22% NA 7.89% 37.20%Class B4********************************* 31 October 2001 (0.83)% 14.05% NA 6.81% 31.60%

Global Life Sciences FundClass A$ ******************************** 31 March 2000 9.89% 15.73% (3.27)% (0.19)% (1.10)%Class B$ ******************************** 31 March 2000 8.77% 14.53% (4.31)% (1.25)% (7.00)%Class I$ ********************************* 31 March 2000 10.80% 16.75% (2.47)% 0.62% 3.60%Class A4 ******************************** 31 March 2000 7.94% 15.62% (3.09)% 1.48% 8.80%Class B4********************************* 31 March 2000 6.86% 14.43% (4.03)% 0.48% 2.80%

Global Technology FundClass A$ ******************************** 31 March 2000 8.65% 15.50% (11.37)% (17.14)% (66.10)%Class B$ ******************************** 31 March 2000 7.38% 14.17% (12.28)% (17.97)% (68.00)%Class I$ ********************************* 31 March 2000 9.60% 16.65% (10.43)% (16.51)% (64.60)%Class A4 ******************************** 31 March 2000 6.96% 15.69% (10.85)% (15.33)% (61.60)%Class B4********************************* 31 March 2000 5.85% 14.37% (11.74)% (16.19)% (63.80)%

US All Cap Growth Fund(b)

Class A$ ******************************** 24 December 1998 12.15% 15.60% (6.12)% 1.22% 8.90%Class B$ ******************************** 24 December 1998 11.01% 14.40% (7.07)% 0.25% 1.80%Class I$ ********************************* 31 December 1999 13.02% 16.61% (5.25)% (8.54)% (41.45)%Class A4 ******************************** 31 December 1999 10.24% 15.77% (5.73)% (6.92)% (34.98)%Class B4********************************* 31 December 1999 9.07% 14.66% (6.62)% (7.53)% (37.47)%

US Fundamental Equity Fund(b)

Class A$ ******************************** 11 January 2002 14.71% 15.65% NA 7.04% 31.00%Class B$ ******************************** 11 January 2002 13.51% 14.47% NA 5.99% 26.00%Class I$ ********************************* 11 January 2002 15.78% 16.83% NA 8.15% 36.50%Class A4 ******************************** 11 January 2002 12.67% 15.65% NA 6.98% 30.70%Class B4********************************* 11 January 2002 11.46% 14.41% NA 5.89% 25.50%

US Strategic Value Fund(b)

Class A$ ******************************** 30 November 2000 8.72% 21.15% 3.90% 4.22% 23.40%Class B$ ******************************** 30 November 2000 7.35% 19.79% 2.80% 3.12% 16.90%Class I$ ********************************* 30 November 2000 9.52% 22.22% 4.79% 5.12% 28.90%Class A4 ******************************** 30 November 2000 6.93% 21.06% 4.04% 3.70% 20.30%Class B4********************************* 30 November 2000 5.56% 19.65% 2.93% 2.59% 13.90%

US Twenty Fund(b)

Class A$ ******************************** 24 December 1998 10.94% 16.06% (2.14)% 1.17% 8.50%Class B$ ******************************** 24 December 1998 9.88% 14.85% (3.11)% 0.17% 1.20%Class I$ ********************************* 31 December 1999 11.86% 17.03% (1.27)% (6.74)% (34.19)%Class A4 ******************************** 31 December 1999 9.02% 16.08% (1.74)% (5.07)% (26.81)%Class B4********************************* 31 December 1999 7.88% 14.85% (2.72)% (5.81)% (30.19)%Class I4(c)******************************** 31 December 1999 9.91% 17.03% (1.04)% (3.61)% (19.81)%

J a n u s Wo r l d F u n d s P l c / 3 1 D e c e m b e r 2 0 0 5 1

Fund Performance



US Venture FundClass A$ ******************************** 31 December 1999 5.68% 22.62% 3.25% (2.22)% (12.60)%Class B$ ******************************** 31 December 1999 4.69% 21.46% 2.22% (3.14)% (17.40)%Class I$ ********************************* 31 December 1999 6.82% 23.85% 4.32% (1.60)% (9.20)%Class A4 ******************************** 31 December 1999 3.63% 22.41% 3.51% 0.48% 2.90)%Class B4********************************* 31 December 1999 2.54% 21.07% 2.51% (0.52)% (3.10)%

US Risk Managed Core Fund(b)

Class A$ ******************************** 25 April 2003 9.81% NA NA 18.83% 58.90%Class B$ ******************************** 25 April 2003 8.70% NA NA 17.73% 55.00%Class I$ ********************************* 25 April 2003 10.34% NA NA 19.46% 61.20%Class A4 ******************************** 25 April 2003 7.99% NA NA 18.96% 59.40%

US REIT FundClass A1$ ******************************* 29 September 2003 5.05% NA NA 12.67% 30.85%Class A2$ ******************************* 29 September 2003 5.06% NA NA 12.68% 30.90%Class B1$ ******************************* 29 September 2003 4.01% NA NA 11.57% 28.01%Class B2$ ******************************* 29 September 2003 4.14% NA NA 11.65% 28.20%Class I1$ ******************************** 29 September 2003 5.89% NA NA 13.59% 33.27%Class A24 ******************************* 29 September 2003 3.39% NA NA 11.65% 28.20%

Past performance does not guarantee future returns. The rates of return will vary and the principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Theperformance data does not take account of the commissions and costs incurred on the issue and redemption of shares. All returns are calculated in the base currency of the relevant share class.(a) Total returns are based on dealing net asset values and not the net asset values detailed in these financial statements which are prepared in accordance with accounting standards generally acceptedin Ireland. Total returns assume the reinvestment of distributions, and in the case of the Class A Shares, exclude the effect of an initial 6.25% maximum sales charge.(b) With effect from 14 November 2005 the following Funds changed names (the respective investment styles of the Funds remained the same): from Global Equity Fund to Global Fundamental EquityFund; from All Cap Growth Fund to US All Cap Growth Fund; from Core Equity Fund to US Fundamental Equity Fund; from Strategic Value Fund to US Strategic Value Fund; from Twenty Fund toUS Twenty Fund; from Risk Managed Core Fund to US Risk Managed Core Fund; from Flexible Income Fund to US Flexible Income Fund; from High Yield Fund to US High Yield Fund.(c) The Class commenced operations on 31 December 1999 and was subsequently closed on 23 October 2000 and then reopened on 22 October 2001. In the periods from 31 December 1999 (incep-tion) to 23 October 2000 and from 22 October 2001 to 31 December 2003, performance reflects actual history. In the period from 24 October 2000 to 21 October 2001, performance reflects linkedhistory to Class I$.

2 J a n u s Wo r l d F u n d s P l c / 3 1 D e c e m b e r 2 0 0 5

TOTAL RETURNS(a)

As at 31 December 2005



US Flexible Income Fund(b)

Class A1$ ******************************* 24 December 1998 0.48% 2.57% 4.53% 4.25% 33.93%Class A2$ ******************************* 24 December 1998 0.53% 2.57% 4.31% 4.08% 32.40%Class B1$ ******************************* 24 December 1998 (0.43)% 1.57% 3.59% 3.35% 25.98%Class B2$ ******************************* 24 December 1998 (0.48)% 1.57% 3.40% 3.19% 24.70%Class I1$ ******************************** 31 December 1999 1.21% 3.35% 5.44% 5.41% 37.15%Class A24 ******************************* 31 December 1999 (1.35)% 2.48% 4.49% 6.95% 49.66%Class B14(c) ****************************** 31 December 1999 (2.43)% 1.53% 3.82% 6.26% 43.92%Class B24 ******************************* 31 December 1999 (2.29)% 1.47% 3.59% 6.04% 42.20%Class I24(d) ****************************** 31 December 1999 (0.61)% 3.28% 5.42% 8.61% 64.11%

US High Yield Fund(b)

Class A1$ ******************************* 24 December 1998 1.63% 7.81% 5.50% 5.40% 44.63%Class A2$ ******************************* 24 December 1998 1.64% 7.85% 5.18% 5.16% 42.40%Class B1$ ******************************* 24 December 1998 0.52% 6.74% 4.57% 4.50% 36.22%Class B2$ ******************************* 24 December 1998 0.60% 6.80% 4.29% 4.26% 34.00%Class I1$ ******************************** 31 December 1999 2.30% 8.72% 6.47% 5.87% 40.84%Class A24 ******************************* 31 December 1999 (0.12)% 7.80% 5.31% 7.23% 51.99%Class B14(c) ****************************** 31 December 1999 (1.21)% 6.81% 4.74% 6.69% 47.46%Class B24 ******************************* 31 December 1999 (1.15)% 6.74% 4.36% 6.31% 44.37%Class I24(e)******************************* 31 December 1999 0.55% 8.81% 7.10% 7.52% 54.50%

US Short-Term Bond FundClass A1$ ******************************* 24 December 1998 0.58% 1.69% 2.72% 3.35% 26.05%Class A2$ ******************************* 24 December 1998 0.56% 1.66% 2.61% 3.39% 26.40%Class B1$ ******************************* 24 December 1998 (0.19)% 0.93% 1.99% 2.60% 19.72%Class B2$ ******************************* 24 December 1998 (0.17)% 0.94% 1.88% 2.52% 19.10%Class I1$ ******************************** 31 December 1999 1.09% 2.24% 3.33% 4.05% 26.89%Class A24 ******************************* 31 December 1999 (1.28)% 1.55% 2.85% 6.04% 42.14%Class B24 ******************************* 31 December 1999 (2.05)% 0.81% 1.99% 5.17% 35.32%

Euro Reserve FundClass A24 ******************************* 1 December 2000 1.06% 1.17% 1.85% 1.82% 9.60%Class B24 ******************************* 1 December 2000 0.36% 0.46% 1.15% 1.13% 5.86%Class I24 ******************************** 1 December 2000 1.82% 1.92% 2.61% 2.64% 14.15%

US Dollar Reserve FundClass A1$ ******************************* 24 December 1998 2.44% 1.15% 1.58% 2.46% 18.63%Class A2$ ******************************* 1 November 2000 2.42% 1.15% 1.53% 1.68% 8.98%Class B1$ ******************************* 24 December 1998 2.36% 1.00% 1.21% 1.99% 14.87%Class B2$ ******************************* 1 November 2000 2.34% 0.98% 1.19% 1.15% 6.09%Class I1$ ******************************** 24 December 1998 3.21% 1.91% 2.36% 3.14% 24.21%

Past performance does not guarantee future returns. The rates of return will vary and the principal value of an investment will fluctuate. Shares, if redeemed, may be worth more or less than their original cost. Theperformance data does not take account of the commissions and costs incurred on the issue and redemption of shares. All returns are calculated in the base currency of the relevant share class.(a) Total returns are based on dealing net asset values and not the net asset values detailed in these financial statements which are prepared in accordance with accounting standards generally acceptedin Ireland. Total returns assume the reinvestment of distributions, and in the case of the Class A Shares, exclude the effect of an initial 6.25% maximum sales charge.(b) With effect from 14 November 2005 the following Funds changed names (the respective investment styles of the Funds remained the same): from the Global Equity Fund to Global FundamentalEquity Fund; from All Cap Growth Fund to US All Cap Growth Fund; from Core Equity Fund to US Fundamental Equity Fund; from Strategic Value Fund to US Strategic Value Fund; from TwentyFund to US Twenty Fund; from Risk Managed Core Fund to US Risk Managed Core Fund; from Flexible Income Fund to US Flexible Income Fund; from High Yield Fund to US High Yield Fund.(c) The Class commenced operations on 31 December 1999 and was subsequently closed on 27 June 2002 and reopened on 18 July 2003. Performance of the Class for the period from 27 June 2002 to18 July 2003 reflects linked history to B24 Share class. Performance prior to 27 June 2002 has been rebased to reflect the launch Net Asset Value of 410 as of 18 July 2003.(d) The Class commenced operations on 31 December 1999 and was subsequently closed on 23 October 2000 and then reopened on 22 October 2001. In the periods from 31 December 1999 (incep-tion) to 23 October 2000 and from 22 October 2001 to 31 December 2003, performance reflects actual history. In the period from 24 October 2000 to 21 October 2001, performance reflects linkedhistory to Class I1$.(e) The Class commenced operations on 31 December 1999 and was subsequently closed on 23 October 2000 and then reopened on 6 March 2001. In the periods from 31 December 1999 (inception)to 23 October 2000 and from 6 March 2001 to 31 December 2003, performance reflects actual history. In the period from 24 October 2000 to 5 March 2001, performance reflects linked history toClass I1$.


Fund Expense Limits and Total Expense Ratios

The Maximum Expense Limits table shows the total fees and out-of-pocket expenses allowable in any fiscal year, excluding transac-tions costs and trade commissions, expressed as a percentage of the average net assets, for each share class (Maximum Expense Lim-its) under the terms of the Prospectus as set out in the ‘‘Fees and Expenses’’ section. The Average Total Expense Ratio table shows theactual expenses, excluding transactions costs and trade commissions, incurred during the reporting period expressed as a percent-age of the average net assets for the corresponding period, on an annualised basis.

Maximum Expense Limits

US Dollar Share Classes Euro Share Classes

Funds Class A Class B Class C*** Class I Class A Class B Class I

Balanced Fund ************************************************** 2.50% 3.50% 2.75% 1.25% 2.50% 3.50% 1.25%Global Fundamental Equity Fund*********************************** 3.00% 4.00% 3.25% 1.75% 3.00% 4.00% 1.75%Global Life Sciences Fund ***************************************** 3.00% 4.00% 3.25% 1.75% 3.00% 4.00% 1.75%Global Technology Fund ****************************************** 3.00% 4.00% 3.25% 1.75% 3.00% 4.00% 1.75%US All Cap Growth Fund ***************************************** 2.75% 3.75% 3.00% 1.50% 2.75% 3.75% 1.50%US Fundamental Equity Fund************************************** 3.00% 4.00% 3.25% 1.75% 3.00% 4.00% 1.75%US Strategic Value Fund ****************************************** 3.00% 4.00% 3.25% 1.75% 3.00% 4.00% 1.75%US Twenty Fund ************************************************ 2.75% 3.75% 3.00% 1.50% 2.75% 3.75% 1.50%US Venture Fund ************************************************ 3.00% 4.00% 3.25% 1.75% 3.00% 4.00% 1.75%US Value Fund************************************************** 3.00% 4.00% 3.25% 1.75% 3.00% 4.00% 1.75%US Risk Managed Core Fund ************************************** 2.00% 3.00% 2.50% 1.25% 2.00% 3.00% 1.25%US REIT Fund ************************************************** 2.75% 3.75% 3.00% 1.50% 2.75% 3.75% 1.50%US Flexible Income Fund ***************************************** 2.50% 3.50% 2.75% 1.25% 2.50% 3.50% 1.25%US High Yield Fund********************************************** 2.50% 3.50% 2.75% 1.25% 2.50% 3.50% 1.25%US Short-Term Bond Fund **************************************** 1.90% 2.90% 2.40% 0.90% 1.90% 2.90% 0.90%Euro Reserve Fund ********************************************** 1.50% 2.50% 2.25% 0.25% 1.50% 2.50% 0.25%US Dollar Reserve Fund ****************************************** 1.50% 2.50% 2.25% 0.25% 1.50% 2.50% 0.25%

Average Total Expense Ratios for the Year Ended 31 December 2005


Funds Class A Class B Class C*** Class I Class A Class B Class I

Balanced Fund ************************************************** 2.04% 3.04% 2.29% 1.25% 2.03% 3.03% NA**Global Fundamental Equity Fund*********************************** 2.75% 3.75% 3.00% 1.75% 2.75% 3.75% NA**Global Life Sciences Fund ***************************************** 2.61% 3.62% 2.84% 1.75% 2.62% 3.62% NA**Global Technology Fund ****************************************** 2.72% 3.75% 2.97% 1.75% 2.72% 3.75% NA**US All Cap Growth Fund ***************************************** 2.42% 3.50% 2.64% 1.50% 2.42% 3.42% NA**US Fundamental Equity Fund************************************** 2.75% 3.75% 3.00% 1.75% 2.75% 3.75% NA**US Strategic Value Fund ****************************************** 2.53% 3.75% 2.76% 1.75% 2.53% 3.75% NA**US Twenty Fund ************************************************ 2.32% 3.33% 2.58% 1.50% 2.33% 3.33% 1.50%US Venture Fund ************************************************ 2.72% 3.75% 2.96% 1.75% 2.71% 3.71% NA**US Value Fund************************************************** 2.75% 3.75% 3.00% 1.75% 2.75% NA** NA**US Risk Managed Core Fund ************************************** 1.73% 2.74% 2.24% 1.23% 1.73% NA** NA**

Average Total Expense Ratios for the Year Ended 31 December 2005


Funds Class A1 Class A2 Class B1 Class B2 Class C*** Class I1 Class A2 Class B1 Class B2 Class I2

US REIT Fund *************** 2.26% 2.25% 3.26% 3.27% 2.52% 1.48% 2.25% NA** NA** NA**US Flexible Income Fund ****** 1.98% 1.98% 2.98% 2.98% 2.24% 1.25% 1.98% 2.97% 2.98% 1.25%US High Yield Fund*********** 2.02% 2.02% 3.02% 3.02% 2.28% 1.25% 2.02% 3.02% 3.02% 1.25%US Short-Term Bond Fund ***** 1.40% 1.40% 2.10% 2.10% 2.08% 0.90% 1.40% NA* 2.10% NA**Euro Reserve Fund************ NA** NA** NA** NA** NA** NA** 1.00% NA** 1.70% 0.25%US Dollar Reserve Fund******** 1.00% 1.00% 1.07% 1.08% 1.09% 0.25% NA** NA** NA** NA**

* This Fund was terminated on 31 May 2005 and its approval revoked by the Financial Regulator on 28 June 2005. The information for this Fund is up to the date of termination.

** NA – Class not launched.

*** This Class closed for new subscriptions on 15 July 2005, and was fully redeemed on 31 October 2005 and is no longer offered by the Company.


Background of the Company

Janus World Funds Plc (the ‘‘Company’’) was incorporated in Five of the Funds have not yet launched, as indicated above.Ireland as a public limited company on 19 November 1998 The Global Risk Managed Core Fund was launched on 31 Janu-under the Companies Acts, 1963 to 2005. Unless otherwise pro- ary 2006. Except for US Dollar Reserve Fund and Euro Reservevided for in this report, all capitalised terms shall have the same Fund, each Fund may issue Shares in multiple Classes denomi-meaning herein as in the Prospectus of the Company dated 22 nated in US dollars($) or Euro(4). The Global Risk ManagedDecember 2005 (the ‘‘Prospectus’’). Core Fund may in addition issue Shares denominated in Pound

Sterling(£). The US Dollar Reserve Fund and the Euro ReserveThe Company is an open-ended investment company with vari-

Funds may issue Shares in multiple Classes denominated in USable capital which has been authorised by the Irish Financial

dollars($) and Euro(4) respectively. Certain Classes of theServices Regulatory Authority (the ‘‘Financial Regulator’’) under

Fund Shares have been admitted to the Official List of the Irishthe European Communities (Undertakings for Collective Invest-

Stock Exchange. Please refer to the Administrator for a completement in Transferable Securities) Regulations, 1989 and comes

listing of the Funds listed on the Irish Stock Exchange.within the scope of the European Communities (Undertakingsfor Collective Investment in Transferable Securities) Regulations, BISYS Fund Services (Ireland) Limited (the ‘‘Administrator’’)2003, as amended (the ‘‘UCITS Regulations’’). determines the net asset value per Share of each Class of each

Fund once on each Business Day. The valuation point for allThe Company is organised in the form of an umbrella fund and

Funds is at the close of the regular trading session of the Newhas twenty two constituent funds (individually the ‘‘Fund’’, col-

York Stock Exchange (normally 4:00 P.M., New York time,lectively the ‘‘Funds’’) as follows:

Monday through Friday).FUNDAMENTAL EQUITY & BALANCED FUNDS

The most recent Prospectus of the Company is dated 22 Decem-Balanced Fund

ber 2005. The most recent Simplified Prospectus of the Compa-Global Fundamental Equity Fund

ny is dated 12 January 2006. Any reference to ‘‘Primarily’’ in theGlobal Growth Fund*

description of the investment objectives and policies of theGlobal Life Sciences Fund

Funds shall mean that at all times at least two thirds of the rele-Global Technology Fund

vant Fund’s net asset value (excluding cash and cashUS All Cap Growth Fund

equivalents) shall be invested in the manner described.US Fundamental Equity FundUS Large Cap Growth Fund*

BALANCED FUNDUS Strategic Value FundUS Twenty Fund This Fund’s investment objective is long-term capital growth,US Venture Fund consistent with preservation of capital and balanced by current

income. It pursues its objective by investing 40%-60% of its netRISK MANAGED EQUITY FUNDS

asset value in securities of US Companies selected mainly forGlobal Risk Managed Core Fund**

their growth potential, such as common stocks, and 40%-60%US Risk Managed Core Fund

of its net asset value in securities of US Issuers selected mainlyUS Risk Managed Growth Fund*

for their income potential, such as Debt Securities. This FundUS Risk Managed Value Fund*

may invest up to 25% of its net asset value in Debt SecuritiesPROPERTY SECURITIES FUNDS rated below investment grade.US REIT Fund

GLOBAL FUNDAMENTAL EQUITY FUNDFIXED INCOME FUNDS

US Flexible Income Fund This Fund’s investment objective is long-term growth of capital.US High Yield Fund It pursues its objective by investing Primarily in common stocksUS Investment Grade Corporate Bond Fund* with the potential for long-term growth of capital using a ‘‘value’’US Short-Term Bond Fund approach. The ‘‘value’’ approach emphasises investments in

companies located anywhere in the world that the relevant Sub-CURRENCY RESERVE FUNDS

Investment Adviser believes are undervalued relative to theirEuro Reserve Fund

intrinsic worth. These companies may also include special situa-US Dollar Reserve Fund

tions companies that are experiencing management changesThe US Value Fund was terminated on 31 May 2005 and its and/or are temporarily out of favour.approval revoked by the Financial Regulator on 28 June 2005.

* Not yet launched

** Launched on 31 January 2006.



GLOBAL LIFE SCIENCES FUND US TWENTY FUND

This Fund’s investment objective is long-term growth of capital. This Fund’s investment objective is long-term growth of capital.It pursues its objective by investing Primarily in equity securities It seeks to achieve its objective by investing Primarily in a coreof companies located anywhere in the world and selected for portfolio of 20-30 common stocks of US Issuers selected fortheir growth potential. The Fund will invest Primarily in securi- their growth potential.ties of companies that the relevant Sub-Investment Adviserbelieves have a life science orientation. Generally speaking, the US VENTURE FUND

‘‘life sciences’’ relate to maintaining or improving quality of life.This Fund’s investment objective is capital appreciation. It pur-

Thus, companies with a ‘‘life science orientation’’ include com-sues its objective by investing at least half of its equity assets in

panies engaged in research, development, production or distri-equity securities of small sized US Companies. Small sized US

bution of products or services related to health and personalCompanies are those whose market capitalisations are less than

care, medicine or pharmaceuticals.US$1 billion or annual gross revenues are less thanUS$500 million.

GLOBAL TECHNOLOGY FUND

This Fund’s investment objective is long-term growth of capital. US RISK MANAGED CORE FUND

It pursues its objective by investing Primarily in equity securitiesThis Fund’s investment objective is long-term growth of capital.

of companies located anywhere in the world and selected forIt pursues its objective by investing at least 80% of its net asset

their growth potential. The Fund will invest Primarily in securi-value in equities and equity related securities of US Companies

ties of companies that the relevant Sub-Investment Adviserwhose market capitalisation is at least equal to the market

believes will benefit significantly from advances or improve-capitalisation of one of the companies listed in the S&P 500

ments in technology.Index at the time of purchase.

US ALL CAP GROWTH FUNDUS REIT FUND

This Fund’s investment objective is long-term growth of capital.This Fund’s investment objective is total return through a com-

It pursues its objective by investing Primarily in common stocksbination of capital appreciation and current income. It pursues

of US Issuers of any size, which may include larger well-estab-its objectives by investing in securities of US Issuers that are

lished issuers and/or smaller emerging growth companies.principally engaged in or related to the property industry orwhich own significant property assets. The Fund invests Prima-

US FUNDAMENTAL EQUITY FUNDrily in real estate investment trusts (‘‘REITs’’) of US Issuers which

This Fund’s investment objective is long-term growth of capital. may include small capitalisation stocks.It pursues its objective by investing Primarily in equity securitiesof US Companies selected for their growth potential. Eligible US FLEXIBLE INCOME FUND

equity securities include US and non-US common stocks, pre-This Fund’s investment objective is to obtain maximum total

ferred stocks, securities convertible into common stocks or pre-return, consistent with preservation of capital. Total return is

ferred stocks, such as convertible preferred stocks, and otherexpected to result from a combination of current income and

securities with equity characteristics. The Fund may invest incapital appreciation, although income will normally be the dom-

companies of any size.inant component of total return. Investments in income produc-ing securities of US Issuers will normally make up 80%, but at

US STRATEGIC VALUE FUNDall times not less than two thirds of the Fund’s net asset value.

This Fund’s investment objective is long-term growth of capital. The Fund may invest in preferred stock, all types of GovernmentIt pursues its investment objective by investing Primarily in Securities and Debt Securities, including specifically Debt Secu-common stocks of US Companies with the potential for long- rities that are convertible or exchangeable into equity securitiesterm growth of capital using a ‘‘value’’ approach. The ‘‘value’’ and Debt Securities that carry with them the right to acquireapproach emphasises investments in companies the relevant equity securities as evidenced by warrants attached to orSub-Investment Adviser believes are undervalued relative to acquired with the securities.their intrinsic worth. These companies may also include specialsituations companies that are experiencing management changes US HIGH YIELD FUND

and/or are temporarily out of favour.This Fund’s primary investment objective is to obtain high cur-rent income. Capital appreciation is a secondary objective whenconsistent with the primary objective. Capital appreciation mayresult, for example, from an improvement in the credit standing


of an issuer whose securities are held by the Fund or from a gen- Fund. However, there can be no assurance that the Companyeral lowering of interest rates, or both. This Fund pursues its will be able to do so.objectives by investing Primarily in Debt Securities or preferred

OTHER RELEVANT INFORMATIONstock rated below investment grade or unrated Debt Securitiesof similar quality as determined by the relevant Sub-Investment (i) Pursuant to a special resolution of the Shareholders of theAdviser provided that at least 51% of its net asset value are Company passed on 10 June 2005, various changes were madeinvested in Debt Securities. The overall quality of the securities to the Memorandum and Articles of Association of the Companyin this portfolio may vary greatly. (the ‘‘Articles’’). These changes include the following: (a) the

amendment of the objects clause of the Company to permitUS SHORT-TERM BOND FUND

investment not just in transferable securities but also in otherThis Fund’s investment objective is to seek as high a level of cur- liquid financial assets as permitted by the UCITS Regulations;rent income as is consistent with preservation of capital. It pur- (b) the amendment of the investment restrictions applicable tosues its objective by investing Primarily in short- and the Company to permit investment in collective investmentintermediate-term Debt Securities of US Issuers. It is expected schemes subject to the more flexible conditions provided for inthat this Fund’s dollar-weighted average portfolio effective the UCITS Regulations; (c) to provide that Funds may have asmaturity will not exceed three years. Although it has no pre- their investment policy the replication of an index, subject to theestablished quality standards, this Fund intends to invest prima- requirements of the UCITS Regulations and the Financial Regu-rily in short- and intermediate-term investment grade Debt lator; (d) the amendment of all references in the Articles to theSecurities. use of financial derivative instruments by the Company solely

for the purposes of efficient portfolio management to allow theEURO RESERVE FUND

Company to invest in such instruments pursuant to the UCITSThis Fund seeks to provide maximum current income to the Regulations; and (e) the insertion of a list of regulated marketsextent consistent with stability of capital. The Fund intends to on which the financial derivative instruments are listed ormaintain a high degree of liquidity, and will invest Primarily in a traded.broad range of high-quality, Euro denominated, short-term

(ii) Details of the investment objectives and policies of thoseGovernment Securities or Debt Securities that present minimal

Funds that have not yet launched as listed above, are set out incredit risk, as determined by the relevant Sub-Investment Advis-

the Company’s Prospectus.er. This Fund will invest only in Government Securities and

(iii) Audited annual reports and unaudited half-yearly reportsDebt Securities that have a remaining effective maturity ofare available to the public at the registered office of the Compa-397 days or less and will maintain a Euro-weighted averageny and are sent to Shareholders at their registered addresseseffective portfolio maturity of 90 days or less. The Companyeither by post or where they so consent, electronically. Theseeks to maintain a constant net asset value per Share of 41 inreports may also be obtained from the respective Paying Agentsrespect of the Class A1, B1 and I1 Shares of the Fund. However,as indicated in this report under the heading ‘‘Directors andthere can be no assurance that the Company will be able toOther Information.’’do so.(iv) Fortis Banque (Suisse) S.A., with its seat in Geneva, carries

US DOLLAR RESERVE FUNDout the function of Swiss representative of the Company and

This Fund seeks to provide maximum current income to the Fortis Banque (Suisse) S.A., Zurich branch, with its seat inextent consistent with stability of capital. The Fund intends to Zurich, carries out the function of paying agent in relation to themaintain a high degree of liquidity, and will invest only in high shares marketed in or from Switzerland. Swiss investors mayquality, US dollar denominated short-term Government Securi- obtain the Extract Prospectus for Swiss Investors, the Extractties or Debt Securities that present minimal credit risk, as deter- Simplified Prospectus for Swiss Investors, the Articles, themined by the relevant Sub-Investment Adviser. This Fund will extract annual and semiannual reports and the list of purchasesinvest only in Government Securities and Debt Securities that and sales that the Company has undertaken in Switzerland dur-have a remaining maturity of 397 days or less (as calculated pur- ing the financial year upon simple request and free of chargesuant to Rule 2a-7 under the US Investment Company Act of from the Swiss representative, Fortis Banque (Suisse) S.A., Gene-1940 (the ‘‘1940 Act’’)), and will maintain a dollar-weighted va, address for inquiries: Fortis Banque (Suisse) S.A., Zurichaverage portfolio maturity of 90 days or less. Although the Fund branch, Rennweg 57, 8023 Zurich, Switzerland.is not bound by Irish law to operate under Rule 2a-7 of the (v) On 31 January 2005, Jill Paitchel resigned as a Director of1940 Act, the Fund intends to operate substantially in accor- the Company.dance with Rule 2a-7, as amended from time to time, in all cases

(vi) On 1 March 2005, Patrick Brophy replaced William Schaffsubject to the requirements of the UCITS Regulations. The

as portfolio manager of the US REIT Fund.Company seeks to maintain a constant net asset value per Shareof US$1 in respect of the Class A1, B1 and I1 Shares of the



(vii) On 4 April 2005, Michael Kirby resigned as a Director of (c) the current aggregate maximum Directors’ remuneration inthe Company. one year was changed to Euro150,000 – previously the aggre-

gate maximum was GBP 50,000.(viii) On 28 April 2005, Dominic Martellaro was appointed as aDirector of the Company. (xviii) On 15 July 2005, Peter Sandys was appointed as a Direc-

tor of the Company.(ix) On 29 April 2005, the final shareholder redeemed its finalholding in the US Value Fund. The Investment Management (xix) On 14 November 2005, a new Prospectus and SimplifiedDelegation Agreement between Janus International Limited and Prospectus were noted by the Financial Regulator. SignificantVontobel Asset Management, Inc was terminated on 30 changes include the following:April 2005. The Directors resolved to terminate the Fund. (a) Funds changed names (the respective investment styles ofApplication for revocation of the Fund was provided to the the Funds remained the same): from the Global Equity Fund toFinancial Regulator on 9 June 2005. On 24 June 2005, termina- Global Fundamental Equity Fund; from All Cap Growth Fund totion financial statements for the US Value Fund, dated 31 US All Cap Growth Fund; from Core Equity Fund to US Funda-May 2005, were filed with the Financial Regulator. On 28 mental Equity Fund; from Strategic Value Fund to US StrategicJune 2005, the Financial Regulator revoked the approval of the Value Fund; from Twenty Fund to US Twenty Fund; from RiskUS Value Fund. Managed Core Fund to US Risk Managed Core Fund; from Flex-(x) On 29 April 2005 the benchmark for the US Flexible Income ible Income Fund to US Flexible Income Fund; from High YieldFund changed from the Lehman Brothers Government/Credit Fund to US High Yield Fund;Index to the Lehman Brothers Aggregate Bond Index. (b) Fund categories changed names: from US Growth and Core(xi) On 29 April 2005, the benchmark for the US Venture Fund Funds to Fundamental Equity and Balanced Funds; Globalchanged from the Russell 2000 Index to the Russell 2000 Funds combined with Fundamental Equity and Balanced Funds;Growth Index. US Value Funds combined with Fundamental Equity and Bal-

anced Funds; from Risk Managed Funds to Risk Managed Equi-(xii) On 29 April 2005, the benchmark for the US REIT Fundty Funds and from US Fixed Income Funds to Fixed Incomechanged from the MSCI US REIT Index to the Janus REIT Index,Funds;a Hybrid mix of 60% MSCI US REIT Index/40% Morgan Stanley

Preferred REIT Index. (c) All references to Class C Shares were deleted; and

(xiii) On 29 April 2005, the primary benchmark for the US All (d) US Flexible Income, US High Yield Bond, US Short-TermCap Growth Fund and the US Twenty Fund changed from the Bond and US Investment Grade Corporate Bond Fund now mayS&P 500 to the Russell 1000 Growth Index. periodically declare and distribute net realised capital gains.

(xiv) On 1 May 2005, Minyoung Sohn replaced Karen Reidy as (xx) On 22 December 2005 and 12 January 2006, the new Pro-portfolio manager of the US Fundamental Equity Fund. spectus and Simplified Prospectus respectively were noted by

the Financial Regulator. Significant changes include the(xv) On 1 May 2005, Gibson Smith and Mark Pinto replacedfollowing:Karen Reidy as portfolio managers of the Balanced Fund, and

Gregory Kolb was appointed as co-portfolio manager of the (a) The Global Risk Managed Core Fund was approved by theGlobal Fundamental Equity Fund. Financial Regulator; and

(xvi) On 30 June 2005, the Board of Directors approved in prin- (b) The current aggregate maximum Directors remuneration incipal the closure of all Class C Shares and the closure of these one year was changed from Euro150,000 to Euro200,000.Shares to new subscriptions. On 31 October 2005, the Class C (c) The minimum initial subscription levels for Class I SharesShares were fully redeemed and are no longer offered by the were reduced from, depending on the currency denomination ofCompany. the Class, US$5,000,000 and Euro 5,000,000 to US$1,000,000(xvii) On 1 July 2005, a new Prospectus and Simplified Prospec- and Euro 1,000,000 respectively.tus were noted by the Financial Regulator. Significant changes (xxi) The Company was deregistered in Greece and the Czechinclude the following: Republic as of 31 December 2005 and 1 December 2005,(a) the investment restrictions applicable to the sub-funds were respectively.replaced with the UCITS III investment restrictions provided for (xxii) On 31 January 2006 the Global Risk Managed Core Fundby the European Communities (Undertakings for Collective commenced operations and was admitted to the Official List ofInvestment in Transferable Securities) Regulation 2003, as the Irish Stock Exchange.amended;

(xxiii) On 1 February 2006, the Global Technology Funds port-(b) all references to the US Value Fund and Vontobel Asset Man-

folio manager, Mike Lu, was replaced by a seven-strong technol-agement, Inc. were deleted; and

ogy research team, led by Brad Slingerlend and Barney Wilson.


Report of the Directors

The Directors submit their report together with the audited Share Classes are detailed in Other Relevant Information onfinancial statements for the year ended 31 December 2005. pages 7 and 8. The Company intends to continue promoting

and generating interest in its business in the future.DIRECTORS’ RESPONSIBILITIES

RISK MANAGEMENT OBJECTIVES AND POLICIESIrish Company law requires the Directors to prepare financialstatements for each financial year which give a true and fair view Details of the risks of the Company are listed in Note 12, ‘‘Deriv-of the state of affairs of the Company and of the profit or loss of atives and Other Financial Instruments’’, including market pricethe Company for that year. In preparing those financial state- risk, foreign currency risk, interest rate risk, liquidity risk, creditments, the Directors are required to: risk and subscription default risk. In order to manage such

risks, the Company shall comply with the investment restric-) select suitable accounting policies and then apply them

tions and diversification limits provided for in the Prospectusconsistently;

and the UCITS Regulations.) make judgments and estimates that are reasonable and pru-

dent; and RESULTS

) prepare the financial statements on the going concern basis The results for the year and particulars relating to distributionsunless it is inappropriate to presume that the Company will are stated on pages 68 and 69 of the financial statements. Partic-continue in business. ulars relating to the issue and redemption of shares are set out

on pages 70 and 71 of the financial statements.The Directors are responsible for keeping proper books ofaccount which disclose with reasonable accuracy at any time the

DIRECTORSfinancial position of the Company and enable them to ensurethat the financial statements comply with the Companies Acts, The names of the persons who were Directors at any time during1963 to 2005. They are also responsible for safeguarding the the year ended 31 December 2005 are listed below.assets of the Company and hence for taking reasonable steps for

Dennis Mullen (U.S.A.)the prevention and detection of fraud and other irregularities.

Carl O’Sullivan (Ireland)In addition to the company law requirements, as an investment Hans Vogel (Ireland)company with variable capital, the Company is required to com- Dominic Martellaro (U.S.A.) (appointed 28 April 2005)ply with the requirements of the UCITS Regulations and related Peter Sandys (Ireland) (appointed 15 July 2005)Financial Regulator Notices and it is the Directors’ responsibility Michael Kirby (Ireland) (appointed 27 July 2004 and resignedto ensure that these regulations are adhered to by the Company. 4 April 2005)

Jill Paitchel (U.S.A.) (appointed 27 April 2004 and resignedBOOKS OF ACCOUNT 31 January 2005)

The measures taken by the Directors to secure compliance withDIRECTORS’ INTERESTS

Company’s obligation to keep proper books of account are theuse of appropriate systems and procedures and employment of None of the Directors or the Company Secretary, at the date ofcompetent persons. The books of accounts are kept at BISYS this report, holds or held, on the date of his appointment or atFund Services (Ireland) Limited, Brooklawn House, Crampton 31 December 2005, any beneficial interest in the shares of theAvenue/Shelbourne Road, Ballsbridge, Dublin 4, Ireland. Company.

PRINCIPAL ACTIVITIES INDEPENDENT AUDITORS

The Company was organised as an investment company with The auditors, PricewaterhouseCoopers, will continue in office invariable capital under the laws of Ireland as a public limited accordance with section 160(2) of the Companies Act, 1963.company pursuant to the Companies Acts, 1963 to 2005, andthe UCITS Regulations. The Company is organised in the form On behalf of the Board:of an umbrella fund.

DirectorREVIEW OF THE BUSINESS AND FUTURE DEVELOPMENTS

The business of the Company is reviewed in detail in the Invest-Directorment Adviser’s reports on pages 10 to 18. The performance of

the various share classes on offer is detailed in ‘‘Fund Perform- 2 March 2006ance’’ on pages 1 to 3. Details of changes to Company’s prospec-tus, Directors, Portfolio Managers and changes to Funds and


Market and Fund Overviews

EQUITY MARKET REVIEW

Equity markets remained volatile in 2005, as investors weighed relatively healthy economic growth against rising interest rates andsoaring energy prices. On a positive note, core inflation remained in the moderate 2% to 2.5% range, despite the fluctuating per-formance of energy prices. Nonetheless, the US Federal Reserve remained vigilant to inflation risks, and raised overnight interestrates by 200 basis points during the year, to 4.25%.

Against this backdrop, the Dow Jones Industrial Average declined 0.61% for the year, while the S&P 500 Index gained 4.91%. Incontrast, the MSCI World Index rose 9.49%, fuelled by a 21.75% surge, the highest since 1988, in Japan’s Nikkei 225 Index. Mean-while, Hong Kong’s Hang Seng Index gained 4.80%. European shares also performed well. France’s CAC 40 rose 9.86%, while theUK’s FTSE 100 earned a 7.99% return.

After starting out the year on a relatively strong note, the US equity market subsequently lost ground as rising fuel prices and thecredit problems of automakers General Motors and Ford overshadowed positive corporate earnings performance. Despite these chal-lenges, the equity market proved resilient, resuming its upward climb through the summer months.

The markets received a jolt in late August, however, as Hurricane Katrina devastated the Gulf Coast and damaged a significant por-tion of the US oil and gas infrastructure. Hurricane Rita rapidly followed, taking a heavy toll on Texas refining facilities. As supplydisruptions pushed crude oil prices above $70 per barrel, concerns over the economic impact of higher gasoline and home heatingcosts took a toll on market performance. Yet the market gained renewed vigour in the fourth quarter as oil prices retreated modestlyand economic growth proved surprisingly robust. Nonetheless, an inverted yield curve raised concerns over the underlying strengthof the US economy late in the fourth quarter, and weighed on market performance as the year came to a close.

Turning to the international arena, Asian markets experienced stellar returns over the past year, fuelled by signs of economic recov-ery in Japan. Performance by major European stock markets was also strong, despite persistent inflation fears.

ing manufacturer of mobile handsets, and Texas Instruments,FUNDAMENTAL EQUITY & BALANCED FUNDSwhich makes the semiconductors integral to many wireless

Balanced Fund applications. Marc took profits on both holdings given concernsMarc Pinto, portfolio manager (equity)*, that their risk/reward profiles appear less attractive at currentGibson Smith, portfolio manager (fixed income)* valuations.

For the year ending 31 December 2005, the Class A$ shares of Despite careful attention to stock selection, a number of theJanus World Funds Plc – Balanced Fund gained 6.56%, out- Fund’s equity holdings detracted from results. These includedperforming its benchmark, the Janus Balanced Index, which retailer Wal-Mart, which struggled as investors questioned itsreturned 3.77%. cost structure and sensitivity to higher energy prices. Marc Pinto

liquidated the Fund’s position in the stock. He also sold theJanus veteran Marc Pinto assumed management of the Fund’sFund’s stake in automotive supplier Lear, which has heavyequity holdings on 1 May 2005. On the same date Gibsonexposure to the faltering Sports Utility Vehicle market.Smith, who currently manages Janus’ High Yield and Short-

Term Bond Funds, took responsibility for the income portion. Turning to the fixed-income portion of the Fund, Gibson SmithBoth managers remained committed to hands-on research and continued to reduce credit exposure, while he allocated moreintensive financial analysis. resources to the Treasury market. Nonetheless, he was able to

take profits on several solid-performing corporate issues,Aiding results was strong stock selection in the health care andincluding Time Warner, Comcast and Budweiser.information technology sectors – two areas where the Fund

maintained significant above-market exposure. In particular, the Going forward, both managers remain committed to identifyingFund benefited from standout performance by drug maker individual investments that are backed by disciplined costCelgene, which has seen its stock price propelled higher by pos- structures, solid credit quality and positive growth potential.itive expectations for its new cancer treatment, Revlimid.

In the technology area, strength in the wireless communicationsmarket drove healthy performance by Motorola, the US’s lead-

* Effective 1 May 2005, Gibson Smith and Marc Pinto replaced Karen Reidy as portfolio managerof this Fund.

1 0 J a n u s Wo r l d F u n d s P l c / 3 1 D e c e m b e r 2 0 0 5

Global Fundamental Equity Fund** Global Life Sciences Fund

Jason Yee, portfolio manager, Tom Malley, portfolio managerGregory Kolb, co-portfolio manager*

For the year ending 31 December 2005, Class A$ shares of theThe Class A$ shares of the Janus World Funds Plc – Global Fun- Janus World Funds Plc – Global Life Sciences Fund gaineddamental Equity Fund gained 2.05% for the year ending 9.89%, outperforming its benchmark, the MSCI World Health31 December 2005, underperforming the benchmark, the MSCI Care Index, which rose 9.00%.World Index, which returned 9.49%.

Top performers included United Therapeutics, a biotech firmWeighing on performance was the Fund’s stake in Tenet Health- that posted better-than-expected sales results for its Remodulincare, which faces a hefty price tag for reorganising and repairing treatment for pulmonary hypertension. Given the stock’s strongits facilities in the hurricane-devastated Gulf Coast region of the advance over the year, Portfolio Manager Tom Malley took someUnited States. Despite the value of Tenet’s assets, uncertainty profits on the position.over its near-term prospects led Portfolio Manager Jason Yee to

Performance also benefited from exposure to two small biotechliquidate the investment.companies. Celgene gained support in anticipation of the Food

In contrast, Jason maintained the Fund’s stake in British Sky and Drug Administration’s (‘‘FDA’’) approval of its RevlimidBroadcasting and Vodafone – two UK-based companies he drug for treating myelodysplastic syndromes (‘‘MDS’’), a blood-believes are suffering only short-term difficulties. BSkyB has borne disease. The drug received the FDA approval in latebeen buffeted by uncertainty over its broadcasting rights to December. Meanwhile, Cubist reported positive results fromEngland’s Premier League, a sports draw that some view as criti- studies involving Cubicin, an antibiotic currently approved tocal to its success. On a positive note, the company offers a siza- treat staph infections. The compound is also proving effective inble growth opportunity as pay-TV services gain more market the treatment of heart valve infections.penetration in the United Kingdom.

On the downside, shares of Cypress Bioscience plummeted onMeanwhile, cellular phone company Vodafone declined after news that Milnacipran, the biotech company’s prospective drugwarning that market competition would pressure its near-term for fibromyalgia, failed to hit key targets in an ongoing Phase IIIfinancial results. Nonetheless, Jason remains optimistic on trial. Given his concerns over this misstep, Tom reduced theVodafone’s ability to translate its market leadership into sizeable stake in Cypress to deploy resources elsewhere.profits.

Declining confidence in corporate management also led Tom toPositive contributors included Ligand Pharmaceuticals, a small liquidate the Fund’s stake in OSI Pharmaceuticals, a companybiotechnology firm that markets a treatment for chronic pain, known for its cancer treatments. OSI displeased stockholdersAvinza. In September, an activist shareholder accumulated just with its plans to acquire Eyetech Pharmaceuticals – a move thatunder 10% of outstanding shares. Jason hopes that this change appeared to stray from the company’s core area of expertise.will enhance the company’s day-to-day business discipline and

Tom trimmed the Fund’s investment in MGI Pharma, after themarket stature.drug manufacturer reported weak first-quarter sales. Nonethe-

Another standout, online travel company Expedia, reported less, he remains cautiously upbeat on prospects for the compa-strong operating results in its first financial release as a stand- ny’s Aloxi drug for chemotherapy-related nausea, and its MDS-alone public company. Meanwhile, Netherlands-based Philips treatment Dacogen, which is currently awaiting FDA approval.Electronics continued to benefit from its diverse array of busi-

Looking ahead, Tom recognises that Medicare considerationsnesses. These included its semiconductor business, which con-could drive life sciences stocks over the next 12-18 months, astinues to exceed Wall Street’s expectations.the new spending programs fuel expanded volume growth for a

Looking ahead, Jason believes that the coming year could prove number of companies. While remaining cognisant of broaderthe turning point for many of the Fund’s largest holdings, as trends such as this, he will continue to focus on identifying thethey capitalise on operating changes, improve their financial strongest individual investment opportunities in the life sci-results, and gain more recognition from investors. ences arena.

* Effective 1 May 2005, Gregory Kolb was appointed as co-portfolio manager of this Fund.

** This Fund changed its name from Global Equity Fund to Global Fundamental Equity Fundwith effect from 14 November 2005.



Global Technology Fund US All Cap Growth Fund**

Mike Lu, portfolio manager* Claire Young, portfolio manager

For the year ending 31 December 2005, Class A$ shares of Janus For the year ending 31 December 2005, Class A$ of the JanusWorld Funds Plc – Global Technology Fund returned 8.65%, World Funds Plc – US All Cap Growth Fund gained 12.15%,outpacing its benchmark, the MSCI World Information Technol- compared with a 5.26% return in the Fund’s benchmark***, theogy Index, which gained 4.81%. Russell 1000 Growth Index.

Stock-picking proved particularly important over the past year, Supporting the Fund’s performance were strong gains by invest-as unusual market volatility created significant performance ments in the health care area, where the portfolio remains signif-divergence between winners and losers. Portfolio Manager Mike icantly overweight relative to its benchmark. IndividualLu was pleased as a number of Fund holdings provided break- contributors included generic drug maker Teva Pharmaceuti-out performance. Standouts included computer-processor man- cals, which continues to gain approvals to market new genericufacturer Advanced Microdevices, which continues to benefit formulations. The company also is benefiting from the success offrom robust demand growth from the notebook and server mar- its own multiple sclerosis drug, Copaxone. Meanwhile, pharma-kets. Another standout, Texas Instruments offers one of the ceutical maker Celgene continued to return strong performance.strongest franchises in digital signal processors and analog chip- The US Food and Drug Administration (‘‘FDA’’) recentlysets. Mike remains impressed with the company’s ability to lev- approved the company’s promising drug Revlimid, a treatmenterage its design and volume advantage in the high-end cell- for blood disorders, myelodysplastic syndromes and multiplephone segment. myeloma.

Long-time holding Corning proved another winner. As one of Intuitive Surgical, another standout, markets the innovativeonly two companies worldwide capable of producing the large, Da Vinci automated surgical system, which uses computer-guid-high-quality sheets of glass integral to large-sized LCD televi- ed robotic arms to help surgeons pinpoint their procedures.sions, Corning benefits from considerable pricing power. This allows for smaller incisions, shorter hospital stays and

speedier recoveries.Providing some offset to these gains were declines in severalhardware holdings, which have suffered from stringent price However, not all of the health care holdings proved favourable.competition in key markets. Detractors included computer mak- Early in the year, Portfolio Manager Claire Young liquidateder Dell, which struggled in the second half of the year as its rev- shares of Irish pharmaceutical maker Elan after safety concernsenue growth weakened. Nonetheless, Mike remains confident in forced the company to pull its multiple sclerosis drug from theDell’s well-honed direct-distribution model and history of market. Meanwhile, stiff competition created difficulties for twostrong execution. Meanwhile, Mike substantially reduced the retail holdings, apparel-chain The Gap and high-end cosmeticFund’s stake in IBM, after the hardware maker’s first-quarter company Estee Lauder. Both holdings were sold during the yearresults fell short of expectations. on concerns over faltering sales growth.

Data storage company EMC proved another negative, as the Claire maintained the Fund’s stake in resort company Four Sea-anticipated resurgence in corporate spending took longer than sons Hotels, despite a third-quarter earnings disappointment.expected to materialise. Nonetheless, given the company’s Company management blamed the miss on the impact of short-robust data management and interface capabilities, Mike term foreign exchange fluctuations, and on the costs associatedbelieves that EMC remains well positioned to capitalise on bur- with a new employee incentive plan that may reward the busi-geoning growth in the storage space. ness going forward.

Looking forward, Mike remains encouraged by what appears to Looking ahead, Claire remains committed to hands-on research,be reasonable valuations and expectations in most sub-sectors of rigorous financial analysis, and close monitoring of valuationtechnology. As always, he will continue to focus on identifying and risk. She continues to focus on identifying companies thatsegments and firms that are benefiting from strong end-user will outperform regardless of the underlying economic climate.demand.

* Effective 1 February 2006, the Global Technology Funds portfolio manager, Mike Lu, wasreplaced by a seven-strong technology research team, led by Brad Slingerlend and Barney Wilson.** This Fund changed its name from All Cap Growth Fund to US All Cap Growth Fund witheffect from 14 November 2005.

*** Effective 29 April 2005 the benchmark for the Fund changed from the S&P 500 to theRussell 1000 Growth Index.


US Fundamental Equity Fund* US Strategic Value Fund***

Minyoung Sohn, portfolio manager** Perkins, Wolf, McDonnell and Company, LLC, sub-investmentadviser

For the year ending 31 December 2005, Class A$ shares of JanusClass A$ shares of the Janus World Funds Plc – US StrategicWorld Funds Plc – US Fundamental Equity Fund gainedValue Fund gained 8.72%, falling short of a 12.65% increase in14.71%, outpacing its benchmark, the S&P 500 Index, whichthe Russell MidCap Value Index.returned 4.91%.

While the performance of the Fund’s individual stock holdingsAgainst a backdrop of higher oil and natural gas prices, the ener-was comparable to that of the benchmark, an above-averagegy sector was again the strongest performer in the S&P 500cash stake reduced the overall return. Nonetheless, this cashIndex. Energy holdings in Amerada Hess, Suncor Energy, andposition reflected the lack of compelling investment opportuni-EOG Resources were all big winners. Despite the recent volatili-ties in a market rife with elevated valuations and volatility. As aty in fuel prices, Portfolio Manager Minyoung Sohn remainsresult, it became difficult to find investments to replace thoseoptimistic on the sector’s continuing prospects. Global suppliesthat reached Perkins Wolf McDonnell and Company’s (‘‘PWM’’)remain tight, and demand remains solid despite the priceprice targets and were subsequently sold.increases.

A number of individual holdings also weighed on performance.Performance also benefited from the Fund’s overweight positionIn particular, rising input prices and falling vehicle sales cloudedin semiconductor manufacturers. Advanced Micro Devicesprospects for automotive parts supplier Lear Automotive, one of(‘‘AMD’’) emerged as the Fund’s top contributor for the year,the Fund’s largest detractors for the year. Given uncertainty overfuelled by the strength of its microprocessor business andits outlook, PWM liquidated the Fund’s investment in the com-improving trends in the flash-memory market. Meanwhile, Tex-pany. Higher commodity prices also pressured other holdings,as Instruments continued to see strong demand for its wirelessincluding Cooper Tire and Rubber and packaging manufacturerchipsets and high performance analog parts. Nonetheless,Smurfit Stone Container.Minyoung reduced the position as shares approached what he

viewed to be a fair-value target price. On a positive note, performance benefited from overweightexposure to the energy area, which accounted for more than halfOne of the most disappointing performers for the year was auto-of the Fund’s top-ten performers. These included Newfieldmotive parts supplier Lear Corp, which was overshadowed byExploration, Patterson-UTI Energy, Oneok, Noble Energy andthe financial pressures afflicting automakers DaimlerChrysler,Unocal, which became the target of competing bids fromFord Motors, and General Motors (none of which the FundChevronTexaco and Chinese oil company CNOC. PWM contin-owned).ued to favour exploration and production (‘‘E&P’’) companies

Performance was also hindered by a number of the Fund’s con- over their oil services peers, given the managers’ belief that E&Psumer stocks, including discount retailer Wal-Mart. The compa- stock values don’t fully reflect long-term normalised commodityny has faced concerns that higher home-heating bills and prices.gasoline prices will squeeze consumer discretionary spending.

Stock selection in the health care sector also bolstered results, asMeanwhile, lodging chain Four Seasons Hotels lost ground afterthe Fund earned a solid return from pharmacy services compa-reporting a third quarter loss.ny Omnicare and drug maker Endo Pharmaceuticals.

Minyoung attributes much of the Fund’s out-performance to theWhile PWM was disappointed to underperform in relativestock selection of former portfolio manager Karen Reidy, and toterms, the managers are not willing to stretch their stringentthe talents of his research team. As he looks ahead, he remainsinvestment criteria by taking on an inordinate degree of riskcommitted to careful stock selection, and to in-depth, bottom-without adequate return. They believe this is the best way toup research aimed at uncovering attractively priced growthdeliver exceptional performance to investors over the long-term.opportunities.

* This Fund changed its name from Core Equity Fund to US Fundamental Equity Fund with *** This Fund changed its name from Strategic Value Fund to US Strategic Value Fund witheffect from 14 November 2005. effect from 14 November 2005.** Effective 1 May 2005, Minyoung Sohn replaced Karen Reidy as portfolio manager of thisFund.



US Twenty Fund* US Venture Fund

Scott Schoelzel, portfolio manager William Bales, portfolio manager

For the year ending 31 December 2005, the Class A$ shares of Class A$ shares of Janus World Funds Plc – US Venture FundJanus World Funds Plc – US Twenty Fund gained 10.94%, near- rose 5.68% for the year ending 31 December 2005, outpacing aly double the 5.26% return on its benchmark**, the Russell 4.15% return by its benchmark***, the Russell 2000 Growth1000 Growth Index and outperforming its secondary bench- Index.mark, the S&P 500 Index.

Solid stock selection once again aided Fund performance.Most of the Fund’s investments continued to deliver strong per- Standouts among individual contributors included documenta-formance, despite the persistent rise in interest rates and oil tion company American Reprographics, which advanced as theprices. UnitedHealth Group remained a top contributor. The market recognised the viability of its business plan. By digitisingcompany continued to report stellar earnings growth and posi- the creation of blueprints and other documents, the companytive guidance, which takes into account its recent acquisition of has helped to streamline a once labour-intensive process.rival PacifiCare and its participation in the new prescription-

Meanwhile, automated back-office service provider Talx contin-drug benefit plan for seniors.

ued to post robust revenues and profits growth. Given the recentOther standouts included Celgene, a drug company that excels volatility in the stock, however, Portfolio Manager Will Balesat using cell-based therapies to treat inflammatory diseases and whittled away at the Fund’s investment, realising long-termcancer. Most recently, the Food & Drug Administration profits in the process.approved the sale of its Revlimid drug as a treatment for

Finally, commercial real estate firm Richard Ellis climbed steadi-myelodysplastic syndrome (‘‘MDS’’), akin to blood cancer.

ly through the year, supported by solid revenue growth andMeanwhile, biotech pioneer Genentech continues to fire on all

increased leasing activity worldwide.cylinders, powered by expanding treatment indications for itscancer drugs. On the downside, film distributor Lions Gate Entertainment suf-

fered a setback when feature film In the Mix proved a box-officeAnother standout, Google saw its stock price surge over the past

disappointment. Nonetheless, the company has established ayear. The online search and information provider has benefited

strong track record of marketing low-budget films to financialfrom the growing migration of advertising money into the

success. As a result, Will maintained his investment in the stock.internet space.

Also weighing on performance was weakness in several holdingsOn the downside, investors gave online marketplace operator

in the health care and information technology sectors – twoeBay a lukewarm response, despite its healthy financial perform-

areas where the Fund remained overweight relative to its bench-ance. In particular, investors were concerned about several cost-

mark. Laboratory services firm SeraCare Life Sciences camely initiatives, including the company’s $620 million purchase of

under pressure after an independent audit firm raised concernscomparison-shopping search engine Shopping.com and its

over its revenue recognition practices. After meeting with com-expensive foray into the Chinese market.

pany management, Will was reassured as to the underlyingBank of America also proved a drag on results. Despite the com- strength of the business. As a result, he used the weakness in thepany’s relatively solid financial performance, Portfolio Manager stock as a buying opportunity.Scott Schoelzel questioned the company’s internal growth

He was less sanguine about prospects for web-based marketingpotential and its decision to acquire MBNA, a large credit-card

research agency, Greenfield Online. The company has facedissuer. As a result, he took a meaningful reduction in this

more stringent price competition even as it has been forced toposition.

pay higher incentives to survey respondents. UncomfortableWhile Scott will continue to monitor developments on the with these dynamics, Will exited the position.macroeconomic front, monitoring the progress of individual

While Will remains vigilant to unfolding macroeconomic devel-Fund holdings will remain his primary focus.

opments, he will continue to focus on identifying compellingsmall-cap companies that can perform in any kind ofenvironment.

* This Fund changed its name from Twenty Fund to US Twenty Fund with effect from *** Effective 29 April 2005 the benchmark for the Fund changed from the Russell 2000 to the14 November 2005. Russell 2000 Growth Index.

** Effective 29 April 2005 the primary benchmark for the Fund changed from the S&P 500 tothe Russell 1000 Growth Index


Because the investment process relies on the natural ups andRISK MANAGED EQUITY FUNDSdowns of stock prices, the Fund will perform better when there

US Risk Managed Core Fund** is some minimum level of market volatility. Also important, theEnhanced Investment Technologies, LLC, sub-investment adviser Fund tends to thrive when the correlation between individual

stocks remains relatively stable.Class A$ shares of Janus World Funds Plc – US Risk ManagedCore Fund returned 9.81% for the year ending 31 Decem- In addition, the Fund’s relative performance will generallyber 2005, compared with a 4.91% rise in its benchmark, the improve when smaller stocks outperform larger ones. While thisS&P 500 Index. ‘‘size effect’’ tends to cancel itself out over time, it can influence

results over the short-term. This was the case during much ofINTECH continued to adhere to a mathematical strategy that2005, as investors’ preferences for smaller cap stocks supporteduses the natural fluctuations in stock prices to beat the S&P 500the Fund’s relative out-performance.Index. Rather than trying to predict the future direction of indi-

vidual stock prices, the goal is to analyse the volatility of stocks Going forward, INTECH will continue to rely on its exactingwithin the S&P 500 Index, as well as how those stocks move in mathematical process as it aims to generate returns approxi-relation to one another. This analysis is then used to determine mately 3 to 4% above those of the Fund’s benchmark, withthe optimal weighting of each holding in the portfolio. Periodi- equal or reduced risk.cally, these weightings are rebalanced, taking into account newinformation on correlation and volatility.

REIT ECONOMIC REVIEW

For the year ending 31 December 2005, the Janus US REIT Index gained 8.72% compared to a 4.91% rise in the S&P 500 Index.

Janus US REIT Portfolio Manager Patrick Brophy emphasises the difficulty in finding an index with a comparable blend of commonand preferred REIT holdings against which to measure the performance of the Janus World Funds Plc – US REIT Fund. As such,Janus has developed the Janus US REIT Index, which weights the Morgan Stanley Equity REIT Index at 60%, and the Morgan Stan-ley Preferred REIT Index at 40%. This combination represents the manager’s best attempt to devise a benchmark that is at least con-ceptually reflective of the Fund.

The REIT market enjoyed banner performance again in 2005, outperforming the broader equity market for the sixth year in a row.In particular, healthy capital inflows helped offset higher short-term interest rates, underpinning asset values. Moreover, investorswere encouraged by improving occupancy rates in key markets, against a backdrop of healthy economic growth and moderateemployment gains. Nonetheless, performance remained uneven across geographic markets. While coastal metropolitan areas contin-ued to benefit from improving fundamentals, more commodity-oriented markets, such as Atlanta, saw occupancy rates pressured bycompetition from new development.

Self-storage remained one of the strongest areas of the overall REIT market, while regional malls benefited from continued strengthin consumer spending. The office and industrial sectors have shown improving fundamentals, as occupancy rates have tightenedand pricing has firmed. Nonetheless, rent roll-downs continue to plague both sectors.

In the multi-family sector, leasing rates gained support from the continued trend toward condominium conversions, which removedsignificant property volume from the rental market. Nonetheless, the recovery remains uneven across industries and geographicmarkets.

** This Fund changed its name from Risk Managed Core Fund to US Risk Managed Core Fundwith effect from 14 November 2005.



PROPERTY SECURITIES FUND

US REIT Fund

Patrick Brophy, portfolio manager*

For the year ending 31 December 2005, Class A$ shares of Janus On a positive note, relative performance benefited from theWorld Funds Plc – US REIT Fund gained 5.05%, compared Fund’s stake in top-performing segments of the REIT market,with a 8.72% return by its benchmark**, the Janus US REIT including self-storage, regional malls, offices, apartment build-Index. ings and lodging properties.

Performance was hindered by weakness in a number of hold- In the office segment, the Fund benefited from investments inings, including Mills Corp., an aggressive developer of super- Boston Properties, a large office REIT with substantial holdingsregional retail and entertainment-oriented centres. The stock fell in high-barrier markets such as New York and Boston. SL Green,after the company delayed its third quarter profit report and lat- another contributor, is an aggressive office REIT that focuseser guided down its earnings. exclusively on Manhattan.

American Financial Realty Trust also weighed on results. This Digital Realty was another standout. This specialty REIT ownstriple-net REIT either purchases or executes sale-leasebacks on and manages corporate enterprise data centres and other tech-office buildings and branch banks for major financial institu- nology-related real estate. Other positive contributors includedtions. Despite solid acquisition activity, investors were disap- Kilroy, a small-cap owner and developer of office and industrialpointed with American Financial’s higher overhead costs and space in Southern California, and U-Store-It, a fast-growinglacklustre leasing performance. acquirer and developer of self-storage facilities.

Another detractor, Trustreet Properties focuses on the restaurant Looking ahead, Portfolio Manager Patrick Brophy remains opti-industry. Despite its attractive dividend, the stock sold off on mistic on long-term prospects for the REIT market. At the sameconcerns over the company’s relatively high leverage and limited time, he remains committed to delivering consistent quarterlygrowth prospects. income and considerable long-term capital appreciation.

FIXED INCOME MARKET REVIEW

Rising interest rates dominated fixed-income performance in 2005, as the Federal Reserve (‘‘FD’’) continued to raise overnight ratesthroughout the year. As a result, the benchmark federal funds rate ended the period at 4.25%, up 200 basis points from the begin-ning of the year.

Despite tighter credit conditions, the Citi 6-Month Treasury Bill gained 3.03% for the twelve-month period, while the Lehman Gov-ernment/Credit Index rose 2.37% and the Lehman Brothers Aggregate Bond Index earned 2.43%. The Lehman High Yield BondIndex gained 2.74%.

As the year began, a surge in crude oil prices sparked inflation fears, and helped drive the yield on the benchmark 10-year Treasurybond to 4.50% by the end of March. At the same time, yield-hungry investors sought higher returns in the corporate credit market,and high-yield securities significantly outperformed the broader fixed-income category early in the year. This changed dramaticallyin March, however, after a high profile profit warning from automaker General Motors (‘‘GM’’) raised credit concerns. As a result,skittish investors took refuge in the Treasury market. Corporate credit spreads continued to widen into May, when GM and rivalFord Motor Company lost their investment-grade status.

Inflation fears again took centre stage in the third quarter, after the back-to-back hurricanes hobbled a sizable portion of the US’s oil-producing and refining capacity. Long-term bond yields resumed their upward climb as crude oil prices tested new highs. The10-year Treasury bond yield ended the year at 4.39%, compared to a 4.24% yield at the end of 2004. Nonetheless, the prospect ofcontinued Fed credit tightening contributed to a more pronounced upward movement in shorter-term bond yields. As a result, theyield curve continued to flatten through the period, before inverting in December.

* Effective 1 March 2005, Patrick Brophy replaced William Schaff as portfolio manager of theUS REIT Fund.

** Effective 29 April 2005 the benchmark for the Fund changed from the MSCI US REIT Indexto the Janus REIT Index, a hybrid mix of 60% Morgan Stanley US REIT Index/40% Morgan Stan-ley Preferred REIT Index.


Against this backdrop, the high-yield sector modestly outperformed the broader fixed-income market, aided by lower default ratesand improving credit quality. Emerging market debt proved the best-performing segment of the fixed-income market, as soaring oilrevenues benefited several of the world’s developing economies.

FIXED INCOME FUNDS

US Flexible Income Fund* US High Yield Fund***

Ron Speaker, portfolio manager Gibson Smith, portfolio manager

Class A$ shares of the Janus World Funds Plc – US Flexible For the year ending 31 December 2005, Class A1$ shares of theIncome Fund declined by 0.48% for the year ending 31 Decem- Janus World Funds Plc – US High Yield Fund returned 1.63%ber 2005, compared to a 2.43% gain in its benchmark**, the compared with a 2.74% rise in its benchmark, the LehmanLehman Brothers Aggregate Bond Index. Brothers High Yield Bond Index.

Fund performance was hindered by pressure on a number of Performance was hindered by weakness in a number of automo-corporate credit investments, including a small stake in General tive credits, including vehicle component manufacturers DelphiMotors. The automaker continued to see its debt downgraded Automotive, Dura Automotive Systems and Park-Ohio Hold-against a backdrop of declining vehicle sales and cash outflows. ings. These companies were squeezed between rising raw mate-Since Portfolio Manager Ron Speaker viewed the pressure on rial prices and weakening consumer vehicle demand. Portfoliothe bonds to be somewhat overstated, he maintained the Fund’s Manager Gibson Smith scaled back exposure to automotiveunderweight exposure to automotive credits. credits, and liquidated the stake in automotive supplier Tenneco

on concerns over its narrowing profit margins.Ron sold the Fund’s stake in Sovereign Bank, another disap-pointment, on concerns over its sensitivity to rising short-term Gibson substantially reduced the Fund’s investment in Charterinterest rates. The retail bank also faced questions about its Communications, a highly leveraged cable company that none-plans to issue more debt to finance an acquisition of Indepen- theless offers a solid asset base. While he remains constructivedence Community Bank. on the company’s efforts to improve its balance sheets, he

recognised that the bonds may remain pressured in the near-Over the course of the year, Ron dramatically reduced the

term.Fund’s overweight exposure to the corporate credit market. Hehas been concerned about the preference that corporations are On a positive note, microprocessor manufacturer Advancedshowing to their shareholders, sometimes at the expense of Micro Devices benefited from stronger-than-seasonal demand inbond holders. In particular, he has been disappointed to see the semiconductor market. The company successfully spun offmanagement teams allocate cash to stock repurchase plans, rath- its flash-memory business, and continues to impress investorser than to debt repayment. with the strength of its financial returns.

On a positive note, performance benefited from Ron’s efforts to Additionally, higher fuel prices and tight capacity conditionsinsulate the Fund from interest rate volatility. During this review favoured a number of energy holdings, including El Paso Ener-period, he built a significant position in mortgage-backed secu- gy. The company continues to pay down debt in its quest forrities, which helped provide ballast to the Fund. higher credit ratings. With its tremendous asset value and ongo-

ing operational changes, Gibson is optimistic about El Paso’sIn the corporate debt market, he continued to favour defensive

abilities to translate higher natural gas prices into tremendousyield-to-call issues, as well as floating-rate instruments that car-

profit growth.ried a hedge against rising interest rates. Positive contributorsincluded power company Allegheny Energy, which continued to Gibson remains committed to fundamental credit-by-creditpay down debt at an aggressive pace. research, as he seeks out companies with a demonstrated com-

mitment to debt repayment and balance sheet restructuring.Going forward, Ron will continue his efforts to insulate the

Such companies should be better able to absorb higher interestFund from interest rate changes, while he takes advantage of the

rates and commodity prices. At the same time, they may becomeFund’s flexible investment mandate to pursue solid total return

candidates for credit upgrades, with the associated spread tight-opportunities across the fixed income spectrum.

ening and price appreciation.

* This Fund changed its name from Flexible Income Fund to US Flexible Income Fund with *** This Fund changed its name from High Yield Fund to US High Yield Fund with effect fromeffect from 14 November 2005. 14 November 2005.

** Effective 29 April 2005, the benchmark for the Fund changed from the Lehman Brothers Gov-ernment/Credit Index to the Lehman Brothers Aggregate Bond Index.



US Short-Term Bond Fund ing performance and continued corporate restructuring efforts.Nonetheless, higher energy costs remained a concern for manyGibson Smith, portfolio managerEuropean companies. Indeed, inflation concerns led the Europe-

For the year ending 31 December 2005, Class A$ shares in the an Central Bank to raise its key interest rates by 25 basis points,Janus World Funds Plc – US Short-Term Bond Fund gained to 2.25%.0.58%, underperforming the Lehman Brothers 1-3 Year Govern-

Looking ahead, Fund strategy will be guided more by liquidityment/Credit Index, which gained 1.77%.concerns than by the interest rate or credit outlook. Portfolio

Throughout most of the period, Portfolio Manager Gibson Smith Manager Sharon Pichler will maintain a short weighted-averagekept the Fund’s average duration somewhat shorter than that of maturity, as she pursues the Fund’s stated mission of maximis-the benchmark. While this strategy was aimed at shielding ing yields without sacrificing liquidity or stability.investors from interest-rate volatility, it also left the Fund vul-nerable to rising short-term yields. US Dollar Reserve Fund

Additionally, Fund performance was hindered as several better Sharon Pichler, portfolio managerrated credit holdings proved vulnerable to higher interest rates.

For the year ending 31 December 2005, Class A1 shares in theThese included bonds issued by retailer Wal-Mart, which has

Janus World Fund Plc – US Dollar Reserve Fund earned 2.44%,also faced questions over its vulnerability to higher energy

while maintaining a $1.00 net asset value.prices.

The past year proved eventful for municipal money funds, as theMeanwhile, the Fund’s investment in auto financing company

Fed continued its relentless campaign of credit tightening, andGeneral Motors Acceptance Corp bonds was overshadowed by

appointed a new chairman, Ben Bernanke. The Fed raised short-concerns over parent company GM’s large cash outflows and

term interest rates by 200 basis points during the year, tofalling vehicle sales.

4.25%.On a positive note, the Fund capitalised on healthy gains in a

Financial markets will likely remain volatile in the near-term asnumber of energy-related utility bonds, which have benefited

investors try to gauge how Fed policymakers will interpret forth-from a favourable pricing environment. One standout was TXU.

coming economic data. Moreover, while the outlook on FedDespite some production disruptions during Hurricane Rita, the

policy remains uncertain, the market was already pricing in atTexas-based power company continues to project solid earnings

least one or two additional rate hikes in early 2006. Nonethe-growth, supported by its cost-cutting and debt-reduction

less, according to the minutes from the 13 December Federalefforts. Meanwhile, the Fund’s Williams Companies bonds bene-

Open Market Committee (‘‘FOMC’’) meeting, policymakers havefited as the independent gas supplier raised its earnings outlook

been reassured by the strength of the US economy, and the rela-to reflect surging natural gas prices.

tively well-contained behaviour of inflation. At the same time,Given the uncertain interest-rate outlook, Gibson will maintain a they no longer described the current level of interest rates asconservative duration strategy while he monitors the spread ‘‘accommodative’’. While one or two additional rate hikes maybetween the 2-year Treasury yield and the federal funds rate as be forthcoming, this change sparked hopes that the central bankthe best indicator of future Fed policy. At the same time, he will may be nearing the end of its credit tightening cycle.focus on shorter-duration, yield-to-call investments that may be

Portfolio Manager Sharon Pichler remains committed to theless sensitive to near-term market fluctuations.

Fund’s mandate of maximising current income, without sacrific-ing stability of capital. In building the portfolio, she continuesto invest about one-third of the assets in extremely liquid securi-CURRENCY RESERVE FUNDSties, one-third in floating-rate securities, and one-third in com-

Euro Reserve Fund mercial paper and CDs. Currently, the Fund is slightlySharon Pichler, portfolio manager underweight in the overnight liquid securities and floating-rate

investments, and slightly overweight in shorter-duration com-For the year ending 31 December 2005, class A2 shares in themercial paper and CDs. With less issuance coming from tradi-Janus World Fund Plc – Euro Reserve Fund earned 1.06%,tional commercial paper issuers, Sharon has increased thewhile maintaining a steady share price for investors.Fund’s weighting in asset-backed securities. Above all, she con-

International markets turned in strong performance for 2005, tinues to pay close attention to the credit quality of individualaided by improving growth prospects in Japan. European shares issues, particularly given the challenging economic backdrop.continued to perform well, supported by relatively healthy earn-


Balanced Fund

PORTFOLIO INVESTMENTS

Percentage Percentageof Net Fair of Net Fair

Shares or Principal Amount Assets Value Shares or Principal Amount Assets Value

Common Stock 63.2% Hotels and MotelsAdvertising Sales 89,590 Marriott International, Inc. –

25,065 Lamar Advertising Co. **************0.4 $ 1,154,995 Class A *************************2.2% $ 6,067,93036,365 Starwood Hotels & ResortsAerospace and Defense

Worldwide, Inc. *****************0.8 2,336,08847,615 Lockheed Martin Corp.* *************1.1 3,024,9813.0 8,404,018Agricultural Chemicals

Medical – Biomedical and Genetic23,928 Syngenta A.G. *********************1.0 2,972,78462,780 Celgene Corp. *********************1.4 4,067,51689,775 Syngenta A.G. (ADR) ****************0.8 2,222,829

1.8 5,195,613 Medical – Drugs23,165 Eli Lilly & Co. *********************0.5 1,330,134Automotive – Cars and Light Trucks22,060 Forest Laboratories, Inc.**************0.3 906,44525,652 Bayerische Motoren Werke A.G. *******0.4 1,122,56548,489 Roche Holding A.G. ****************2.6 7,275,565

Beverages – Non-Alcoholic 32,414 Sanofi-Aventis**********************1.0 2,839,26158,940 PepsiCo, Inc. **********************1.2 3,506,341

4.4 12,351,405Building – Residential and Commercial

Medical – HMO32,865 Pulte Homes, Inc. ******************0.5 1,311,97183,205 Aetna, Inc. ************************2.8 7,965,214

Casino Hotels 21,925 UnitedHealth Group, Inc. ************0.5 1,362,42053,155 Harrah’s Entertainment, Inc. **********1.3 3,815,997 3.3 9,327,634

Computers Networking Products32,490 Research In Motion, Ltd. *************0.8 2,146,614 63,905 Cisco Systems, Inc. *****************0.4 1,091,497

Computers – Memory Devices Oil Companies – Exploration and Production152,835 EMC Corp. ***********************0.7 2,096,896 62,330 EnCana Corp. *********************1.0 2,795,501

Cosmetics and Toiletries Oil Companies – Integrated84,935 Procter & Gamble Co. **************1.8 4,959,355 59,935 BP PLC (ADR) *********************1.3 3,847,827

Diversified Manufacturing Operations 143,925 Exxon Mobil Corp. *****************2.8 8,094,342244,425 General Electric Co.* ****************3.0 8,601,315 48,286 Suncor Energy, Inc. *****************1.1 3,046,231

96,440 Honeywell International, Inc. *********1.3 3,628,073 5.2 14,988,40075,895 Tyco International, Ltd. **************0.8 2,193,366

Pharmacy Services5.1 14,422,754 51,045 Caremark Rx, Inc. ******************0.9 2,651,788

Diversified Operations Retail – Building Products403,000 Melco International 66,055 Home Depot, Inc. ******************0.9 2,691,741

Development, Ltd. ****************0.2 480,789Retail – Regional Department Stores

E-Commerce and Services 59,600 Federated Department119,285 Expedia, Inc. **********************1.0 2,856,876 Stores, Inc.* *********************1.4 3,961,612119,985 IAC InterActiveCorp ****************1.2 3,395,575

Retail – Restaurants2.2 6,252,45118,025 Yum! Brands, Inc. ******************0.3 845,012

Electronic Components – SemiconductorsSemiconductor Components – Integrated Circuits50,225 Advanced Micro Devices, Inc. *********0.5 1,531,360

20,085 Linear Technology Corp. *************0.3 723,4626,352 Samsung Electronics Co., Ltd. ********1.5 4,144,52316,205 Maxim Integrated Products, Inc. *****0.2 587,107157,910 Texas Instruments, Inc. **************1.8 5,122,600

0.5 1,310,5693.8 10,798,483Soap and Cleaning PreparationEnterprise Software and Services

89,734 Reckitt Benckiser PLC ***************1.0 2,963,556150,665 Oracle Corp. **********************0.6 1,839,620Super-Regional Banks – U.S.Finance – Credit Card

50,145 Bank of America Corp. **************0.8 2,316,19860,695 American Express Co. ***************1.1 3,102,121Telecommunication Equipment – Fiber OpticsFinance – Investment Bankers and Brokers

109,030 Corning, Inc. **********************0.8 2,169,6978,734 Citigroup, Inc. *********************0.1 424,298Therapeutics165,510 JP Morgan Chase & Co.* ************2.3 6,592,263

40,475 Gilead Sciences, Inc. ****************0.8 2,127,366130,045 Merrill Lynch & Co., Inc. ************3.1 8,836,559

5.5 15,853,120 Transportation – Railway62,297 Canadian National Railway Co. *******1.8 5,026,745Finance – Mortgage Loan and Banker31,175 Union Pacific Corp.* ****************0.9 2,525,17550,630 Fannie Mae************************0.9 2,431,759

2.7 7,551,920

Transportation – Services12,375 FedEx Corp. **********************0.5 1,284,525

The accompanying notes are an integral part of the financial statements.


Balanced Fund




Web Portals and Internet Service Providers Diversified Financial Services5,320 Google, Inc. – Class A ***************0.8% $ 2,207,055 General Electric Capital Corp.:

126,315 Yahoo!, Inc. ***********************1.7 4,949,022 730,000 5.35%, notes, due 30/3/06**********0.2% $ 731,269460,000 6.75%, notes, due 15/3/32**********0.2 541,7652.5 7,156,077

0.4 1,273,034Wireless Equipment253,805 Motorola, Inc.**********************2.0 5,784,216 Diversified Manufacturing Operations

740,000 Honeywell International, Inc.Total Common Stock (Cost $138,323,928) ************63.2 179,356,673 5.125%, notes, due 1/11/06 ********0.3 741,116

Corporate Bonds 10.5 Electric – IntegratedAerospace and Defense 619,000 CMS Energy Corp., 9.875%

381,000 Lockheed Martin Corp., 7.65% senior notes, due 15/10/07 *********0.2 662,330company guaranteed notes 985,000 Midamerican Energy Holdings Co.due 1/5/16 **********************0.2 454,736 3.50%, senior notes

due 15/5/08 *********************0.4 950,906Automotive – Cars and Light TrucksPacific Gas & Electric Co.:335,000 General Motors Nova Scotia

95,000 3.60%, unsecured notesFinance Co., 6.85%due 1/3/09 **********************0.0 91,232company guaranteed notes

315,000 4.20%, unsecured notesdue 15/10/08 ********************0.1 251,250due 1/3/11 **********************0.1 302,381

Automotive and Truck Parts and Equipment – TXU Corp.:Original 660,000 5.55%, senior notes

345,000 Tenneco Automotive, Inc., 8.625% due 15/11/14 ********************0.2 626,794company guaranteed notes 190,000 6.55%, notes, due 15/11/34 ********0.1 179,550due 15/11/14 ********************0.1 326,025

1.0 2,813,193Brewery

Electronic Components – SemiconductorsMiller Brewing Co.:655,000 Advanced Micro Devices, Inc.915,000 4.25%, notes, due 15/8/08**********0.3 898,520

7.75%, senior notes535,000 5.50%, notes, due 15/8/13**********0.2 546,172due 1/11/12 *********************0.3 661,550

0.5 1,444,692 Freescale Semiconductor, Inc.:Casino Hotels 580,000 7.20%, senior notes

885,000 Mandalay Resort Group, 6.50% due 15/7/09 *********************0.2 595,950senior notes, due 31/7/09 **********0.4 894,956 355,000 6.875%, senior notes

695,000 MGM Mirage, 6.625% due 15/7/11 *********************0.1 372,750company guaranteed notes 470,000 7.125%, senior notesdue 15/7/15 *********************0.2 693,263 due 15/7/14 *********************0.2 500,550

0.6 1,588,219 0.8 2,130,800

Cellular Telecommunications Electronic Parts – Distribution836,000 Nextel Communications, Inc. 685,000 Avnet, Inc., 6.00%

6.875%, senior notes notes, due 1/9/15 *****************0.2 667,567due 31/10/13 ********************0.3 872,854 Finance – Auto Loans

Chemicals – Specialty General Motors Acceptance Corp.:277,000 Nalco Co., 7.75% 297,000 6.15%, bonds, due 5/4/07 **********0.1 280,613

senior notes, due 15/11/11 *********0.1 284,618 465,000 4.375%, notes, due 10/12/07 *******0.1 413,381500,000 7.75%, notes, due 19/1/10**********0.2 467,336Commercial Banks – Central U.S.

0.4 1,161,330645,000 U.S. Bank N.A., 5.70%subordinated notes Finance – Consumer Loansdue 15/12/08 ********************0.2 660,433 790,000 HSBC Finance Corp., 4.75%

notes, due 15/5/09 ****************0.3 781,981Consumer Products – Miscellaneous215,000 Fortune Brands, Inc., 4.875% Finance – Investment Bankers and Brokers

notes, due 1/12/13 ****************0.1 209,115 1,135,000 Citigroup, Inc., 5.00%subordinated notesContainers – Metal and Glassdue 15/9/14 *********************0.4 1,119,189Owens-Brockway Glass

1,015,000 Credit Suisse First BostonContainer, Inc.:USA, Inc., 3.875%1,236,000 8.875%, company guaranteednotes, due 15/1/09 ****************0.3 986,007notes, due 15/2/09 ****************0.4 1,290,075

825,000 JPMorgan Chase & Co., 3.80%180,000 6.75%, company guaranteednotes, due 2/10/09 ****************0.3 794,279notes, due 1/12/14 ****************0.1 174,600

898,000 Owens-Illinois, Inc., 7.35% 1.0 2,899,475senior notes, due 15/5/08 **********0.3 909,225

0.8 2,373,900






Food – Miscellaneous and Diversified Transportation – Railway758,000 Kellogg Co., 2.875% 125,000 BNSF Funding Trust I, 6.61%

senior notes, due 1/6/08 ***********0.3% $ 722,943 company guaranteed notesdue 15/12/55 ********************0.0% $ 130,616Food – Wholesale and Distribution

Canadian National Railway Co.:529,000 Pepsi Bottling Holdings, Inc.230,000 4.25%, notes, due 1/8/09***********0.1 224,9125.625%, company guaranteed460,000 6.25%, bonds, due 1/8/34 **********0.2 513,619notes, due 17/2/09 ****************0.2 541,711

0.3 869,147Gas – Distribution215,000 Colorado Interstate Gas Co. Total Corporate Bonds (Cost $29,996,034) ************10.5 29,784,868

6.80%, senior notesdue 15/11/15 ********************0.1 219,703 Tranche Loans 0.1

Independent Power Producer Retail – Regional Department Stores312,000 Reliant Energy, Inc., 9.25% 224,000 Neiman-Marcus Group, Inc.

secured notes, due 15/7/10 *********0.1 312,000 6.95%, due 6/4/13 ****************0.1 225,530Medical – HMO

Total Tranche Loans (Cost $224,971) *****************0.1 225,530380,000 UnitedHealth Group, Inc., 5.20%senior unsecured notes

U.S. Government Obligations 22.3due 17/1/07 *********************0.1 379,852U.S. Government AgenciesOil Companies – Exploration and Production

Fannie Mae:54,000 El Paso Production Holding Co.745,000 2.00%, due 15/1/06 ***************0.3 744,3517.75%, company guaranteed930,000 2.125%, due 15/4/06 **************0.3 923,572notes, due 1/6/13 *****************0.0 56,025

1,625,000 5.00%, due 15/1/07 ***************0.5 1,628,641Pharmacy Services 770,000 3.25%, due 15/11/07 **************0.3 749,972

200,000 Omnicare, Inc., 6.875% 325,000 2.50%, due 15/6/08 ***************0.1 308,588senior subordinated notes 500,000 5.25%, due 15/1/09 ***************0.2 507,980due 15/12/15 ********************0.1 203,000 105,000 6.375%, due 15/6/09 **************0.0 110,396

727,000 5.375%, due 15/11/11 *************0.3 749,280Pipelines1,405,000 Federal Home Loan BankEl Paso Corp.:

2.25%, due 15/5/06 ***************0.5 1,393,149154,000 7.625%, notes, due 1/9/08**********0.1 156,310Freddie Mac:1,597,000 7.00%, senior notes

615,000 5.75%, due 15/4/08 ***************0.2 628,577due 15/5/11 *********************0.5 1,585,023270,000 5.75%, due 15/3/09 ***************0.1 278,100118,000 7.875%, notes, due 15/6/12 ********0.0 121,540255,000 7.00%, due 15/3/10 ***************0.1 277,063237,000 7.42%, notes, due 15/2/37**********0.1 225,150

2.9 8,299,6690.7 2,088,023

U.S. Treasury BondsRetail – Major Department Stores1,734,000 7.25%, due 15/5/16 ***************0.8 2,129,699495,000 The May Department Stores Co.

317,000 8.125%, due 15/8/19 **************0.2 430,1534.80%, notes, due 15/7/09**********0.2 488,4871,454,000 7.875%, due 15/2/21 **************0.7 1,968,239Special Purpose Entity1,363,000 7.25%, due 15/8/22 ***************0.6 1,775,403760,000 Resona Preferred Global Securities1,880,000 6.25%, due 15/8/23 ***************0.7 2,245,566Cayman, Ltd., 7.19%1,660,000 6.00%, due 15/2/26 ***************0.7 1,958,023due 31/12/49 ********************0.3 807,727

184,000 5.25%, due 15/2/29 ***************0.1 200,840Telecom Services 3.8 10,707,923

1,115,000 Verizon Global Funding Corp.U.S. Treasury Inflation Indexed Obligations4.00%, senior unsecured notes

2,790,000 1.875%, due 15/7/15 **************1.0 2,810,839due 15/1/08 *********************0.4 1,094,050900,000 3.625%, due 15/1/08 **************0.4 1,139,846

Telephone – Integrated1.4 3,950,685555,000 Sprint Capital Corp., 8.375%

notes, due 15/3/12 ****************0.2 644,018

Television411,000 British Sky Broadcasting

6.875%, company guaranteednotes, due 23/2/09 ****************0.1 423,844



Balanced Fund


Percentage Forward Currency Contracts, Open at 31 December 2005of Net Fair

Currency UnrealisedShares or Principal Amount Assets ValueCurrency Currency Market Settle Appreciation/

U.S. Treasury Notes Purchased Sold Value $U.S. Date (Depreciation)490,000 2.375%, due 15/8/06 **************0.2% $ 484,124

1,835,000 3.375%, due 15/2/08 **************0.6 1,797,799 Credit Suisse First Boston1,685,000 5.625%, due 15/5/08 **************0.6 1,731,455 EURO 1,200,000 USD 1,449,408 $ 1,422,364 27-Jan-06 $ (27,044)2,125,000 3.125%, due 15/4/09 **************0.7 2,044,981 EURO 65,077,957 USD 79,557,000 77,221,858 16-Feb-06 (2,335,142)2,250,000 6.00%, due 15/8/09 ***************0.8 2,371,973 USD 3,158,752 EURO 2,575,000 3,052,157 27-Jan-06 106,5952,706,000 4.00%, due 15/4/10 ***************0.9 2,667,526 USD 6,909,000 EURO 5,745,956 6,818,182 16-Feb-06 90,8181,145,000 3.625%, due 15/6/10 **************0.4 1,111,590

Morgan Stanley1,030,000 3.875%, due 15/7/10 **************0.4 1,009,803USD 933,489 GBP 530,000 911,543 27-Jan-06 21,946455,000 5.75%, due 15/8/10 ***************0.2 481,499USD 315,875 GBP 175,000 300,975 23-Feb-06 14,900485,000 4.375%, due 15/12/10 *************0.2 485,531USD 544,054 KWN 565,000,000 559,989 23-Feb-06 (15,935)2,400,000 5.00%, due 15/8/11 ***************0.9 2,477,906HSBC1,360,000 4.25%, due 15/8/14 ***************0.5 1,345,551USD 237,920 EURO 200,000 238,450 11-May-06 (530)3,220,000 4.25%, due 15/8/15 ***************1.1 3,179,373USD 1,864,095 GBP 1,085,000 1,867,055 11-May-06 (2,960)1,860,000 5.375%, due 15/2/31 **************0.7 2,089,885USD 302,885 KWN 315,000,000 312,533 11-May-06 (9,648)2,015,000 3.50%, due 15/11/06 **************0.7 1,999,809

1,710,000 3.00%, due 31/12/06 **************0.6 1,686,421Total $(2,157,000)5,500,000 3.625%, due 30/4/07 **************2.0 5,444,142

985,000 3.875%, due 31/7/07 **************0.3 977,305230,000 4.00%, due 30/9/07 ***************0.1 228,473

1,210,000 3.75%, due 15/5/08 ***************0.4 1,193,174590,000 4.375%, due 15/11/08 *************0.2 590,277230,000 4.125%, due 15/8/10 **************0.1 227,808775,000 4.25%, due 15/10/10 **************0.3 771,186

3,695,000 4.50%, due 15/11/10 **************1.3 3,716,076

14.2 40,113,667

Total U.S. Government Obligations(Cost $63,023,419)*****************************22.3 63,071,944

Repurchase Agreement 4.3$12,200,000 Lehman Brothers Holding, Inc.

4.26%, dated 30/12/05maturing 3/1/06, to berepurchased at $12,200,057collateralised by $31,635,000in Fannie Mae 0.00%due 1/4/33with a value of $12,444,059(Cost $12,200,000) ***************4.3 12,200,000

Total Repurchase Agreement (Cost $12,200,000) ********4.3 12,200,000

Total Investments (Cost $243,768,351)**************100.4 284,639,015

Liabilities in excess of other assets ******************* (0.4) (1,266,416)

Net Assets attributable to holders of redeemableordinary shares *******************************100.0 $283,372,599

* All or part of these securities were out on loan as at 31 December 2005. See note 7.



Global Fundamental Equity Fund




Common Stock 101.2% Miscellaneous ManufacturingAgricultural Chemicals 88,758 FKI PLC****************************** 1.1% $ 176,337

1,497 Syngenta A.G. ************************* 1.1 $ 185,985 MultimediaAudio and Video Products 8,847 Vivendi Universal S.A. ****************** 1.7 277,094

6,000 Sony Corp. *************************** 1.5 245,251 26,960 Walt Disney Co.************************ 3.9 651,623

5.6 928,717Beverages – Wine and Spirits21,646 Diageo PLC *************************** 1.9 313,691 Property and Casualty Insurance

162,000 Nipponkoa Insurance Company, Ltd. ****** 7.8 1,299,627Broadcast Services and Programming3,643 Discovery Holding Co. – Class A ********** 0.3 55,155 Reinsurance3,106 Liberty Global, Inc. – Class C ************* 0.4 65,692 222 Berkshire Hathaway, Inc. – Class B********* 3.9 653,1248,591 Liberty Global, Inc. – Class A ************* 1.2 193,040

Retail – Apparel and Shoe36,435 Liberty Media Corp. – Class A ************ 1.7 286,0147,354 Next PLC ***************************** 1.2 194,046

3.6 599,901Rubber and Plastic Products

Cellular Telecommunications 24,600 Tenma Corp. ************************** 2.8 466,257129,292 Vodafone Group PLC******************** 1.7 278,551

Savings & Loan and Thrifts – Eastern U.S.Distribution and Wholesale 12,150 NewAlliance Bancshares, Inc. ************* 1.1 177,512

25,500 Esprit Holdings, Ltd. ******************* 1.1 181,053Television

Diversified Manufacturing Operations 92,892 British Sky Broadcasting Group PLC ******* 4.8 793,32717,552 Smiths Group ************************* 1.9 314,593

Toys23,970 Tyco International, Ltd. ***************** 4.2 692,73315,430 Mattel, Inc.* ************************** 1.5 245,491

6.1 1,007,326Total Common Stock (Cost $13,951,315) *************101.2 16,784,699Diversified Operations

20,000 Hutchison Whampoa, Ltd. *************** 1.1 190,497Repurchase Agreement 1.84,511 LVMH Moet Hennessy

$300,000 Lehman Brothers Holding, Inc.Louis Vuitton S.A. ******************* 2.5 400,4754.26%, dated 30/12/05 maturing3.6 590,9723/1/06, to be repurchased at

Diversified Operations and Commercial Services $300,196 collateralised by62,386 Rentokil Initial PLC********************* 1.1 175,184 $6,015,000 in Fannie Mae 0.00%

due 1/6/31, with a value ofE-Commerce and Products$306,199 (Cost $300,000) ************* 1.8 300,00012,030 Amazon.com, Inc. ********************* 3.4 567,094

E-Commerce and Services Total Repurchase Agreement (Cost $300,000)************ 1.8 300,00031,455 Expedia, Inc. ************************** 4.4 753,348

Total Investments (Cost $14,251,315)****************103.0 17,084,69922,215 IAC InterActiveCorp ******************** 3.8 628,685

8.2 1,382,033 Liabilities in excess of other assets ******************** (3.0) (492,011)Electronic Components – Miscellaneous

Net Assets attributable to holders of redeemable28,594 Koninklijke (Royal) Philipsordinary shares ********************************100.0 $16,592,688Electronics N.V. ********************* 5.4 888,475

Finance – Investment Bankers and Brokers23,911 JPMorgan Chase & Co.* **************** 5.7 952,375 * All or part of these securities were out on loan as at 31 December 2005. See note 7.

Food Services35,971 Missin Healthcare Food

Forward Currency Contracts, Open at 31 December 2005Company, Ltd. ********************** 3.3 549,082

Health Care Cost Containment Currency Unrealised3,365 McKesson Corp. *********************** 1.1 176,023 Currency Currency Market Settle Appreciation/

Purchased Sold Value $U.S. Date (Depreciation)Insurance Brokers32,830 Willis Group Holdings, Ltd. ************** 7.3 1,218,978

Credit Suisse First BostonMachinery – PumpsEURO 10,921,559 USD 13,498,000 $12,959,581 16-Feb-06 $(538,419)13,004 Pfeiffer Vacuum Technology A.G. ********** 4.3 708,223USD 3,420,000 EURO 2,835,898 3,365,092 16-Feb-06 54,908

Medical – DrugsTotal $(483,511)81,210 Ligand Pharmaceuticals, Inc. – Class B****** 5.5 905,492

4,700 Takeda Chemical Industries, Ltd. ********* 1.5 253,892

7.0 1,159,384

Medical – Hospitals30,375 Health Management Associates, Inc. –

Class A***************************** 4.0 670,680



Global Life Sciences Fund




Common Stock 100.2% Medical – HospitalsAgricultural Chemicals 181,320 LifePoint Hospitals, Inc. **************2.2% $ 6,797,687

63,644 Syngenta A.G. **********************2.5 $ 7,907,050 83,540 United Surgical PartnersInternational, Inc. *****************0.8 2,679,128Dental Supplies and Equipment

3.0 9,476,81593,240 Patterson Companies, Inc. ************1.0 3,107,689

Medical – Nursing HomesDiagnostic Equipment125,945 Manor Care, Inc. ********************1.6 5,037,800138,985 Cytyc Corp. ************************1.2 3,922,157

Medical – Wholesale Drug DistributorsDiagnostic Kits105,085 Cardinal Health, Inc.* ****************2.3 7,252,967135,695 Dade Behring Holdings, Inc. ***********1.8 5,547,212

Medical InstrumentsFood – Dairy Products99,465 Medtronic, Inc.* ********************1.8 5,753,056100,745 Dean Foods Co. *********************1.2 3,832,340

125,535 St. Jude Medical, Inc. ****************2.0 6,370,901Instruments – Scientific3.8 12,123,957122,645 Fisher Scientific International, Inc. *****2.4 7,556,158

Medical ProductsLife and Health Insurance72,730 Johnson & Johnson ******************1.4 4,382,71039,495 Universal American Financial Corp. *****0.2 596,769

Optical SuppliesMedical – Biomedical and Genetic35,675 Alcon, Inc. *************************1.5 4,623,480337,195 Alexion Pharmaceuticals, Inc. **********2.2 6,828,199

45,690 Amgen, Inc. ************************1.1 3,596,717 Pharmacy Services217,795 Celgene Corp. **********************4.5 14,110,937 149,665 Caremark Rx, Inc. *******************2.4 7,775,097

59,265 Genentech, Inc. *********************1.7 5,458,899 93,300 Medco Health Solutions, Inc. **********1.7 5,296,641100,255 Genzyme Corp. *********************2.2 7,086,023 4.1 13,071,738107,865 Invitrogen Corp. ********************2.3 7,188,124

Therapeutics14.0 44,268,899 206,485 Gilead Sciences, Inc. *****************3.5 10,852,852

Medical – Drugs 310,365 MGI Pharma, Inc. *******************1.7 5,322,760123,385 Abbott Laboratories ******************1.6 4,909,489 105,780 Neurocrine Biosciences, Inc. ***********2.1 6,632,406347,655 Adolor Corp. ***********************1.6 5,075,763 118,225 Onyx Pharmaceuticals, Inc. ***********1.1 3,391,875

85,085 AstraZeneca Group PLC (ADR) *********1.3 4,177,674 152,707 United Therapeutics Corp. ************3.3 10,556,635323,290 Cubist Pharmaceuticals, Inc. ***********2.2 6,850,514 11.7 36,756,528

98,470 Eli Lilly & Co. **********************1.8 5,654,147122,510 Endo Pharmaceuticals Total Common Stock (Cost $261,981,359) ***********100.2 316,306,090

Holdings, Inc. ********************1.2 3,701,02791,685 Forest Laboratories, Inc. **************1.2 3,767,337 Repurchase Agreement 1.0

111,695 Idenix Pharmaceuticals, Inc. ***********0.6 1,902,166 $3,100,000 Lehman Brothers Holding, Inc.233,410 K-V Pharmaceutical Co. – Class A *******1.5 4,798,910 4.26%, dated 30/12/05 maturing419,370 Ligand Pharmaceuticals, Inc. – 3/1/06, to be repurchased at

Class B **************************1.5 4,675,976 $3,102,559 collateralised by163,140 Merck & Co., Inc. *******************1.7 5,271,053 $5,805,000 in Fannie Mae 0.00%

50,274 Merck KGaA ************************1.3 4,166,242 due 1/9/33, with a value of74,598 Novartis A.G. ***********************1.2 3,915,600 $3,164,610 (Cost $3,100,000) *******1.0 3,100,000

388,995 Pfizer, Inc. *************************2.9 9,121,932Total Repurchase Agreement (Cost $3,100,000) *********1.0 3,100,00075,719 Roche Holding A.G. *****************3.6 11,361,308

66,475 Sepracor, Inc. **********************1.1 3,427,451 Total Investments (Cost $265,081,359)**************101.2 319,406,090148,550 Shire Pharmaceuticals

Group PLC (ADR) *****************1.8 5,762,255 Liabilities in excess of other assets ******************* (1.2) (3,927,200)146,050 Wyeth *****************************2.1 6,776,720

Net Assets attributable to holders of redeemable30.2 95,315,564 ordinary shares *******************************100.0 $315,478,890

Medical – Generic Drugs229,765 Teva Pharmaceutical SP (ADR) *********3.1 9,889,086

* All or part of these securities were out on loan as at 31 December 2005. See note 7.Medical – HMO121,430 Aetna, Inc. *************************3.6 11,624,493256,770 Centene Corp. **********************2.2 6,837,785204,235 Coventry Health Care, Inc. ************3.7 11,604,633183,830 UnitedHealth Group, Inc. *************3.7 11,570,260

13.2 41,637,171




Forward Currency Contracts, Open at 31 December 2005

Currency UnrealisedCurrency Currency Market Settle Appreciation/Purchased Sold Value $U.S. Date (Depreciation)

Credit Suisse First BostonCHF 2,000,000 USD 1,566,048 $ 1,526,440 27-Jan-06 $ (39,608)EURO 4,000,000 USD 4,827,350 4,761,616 27-Jan-06 (65,734)USD 7,620,895 CHF 9,600,000 7,326,914 27-Jan-06 293,981USD 7,078,059 EURO 5,770,000 6,839,202 27-Jan-06 238,857EURO 88,623,700 USD 109,110,400 105,140,963 16-Feb-06 (3,969,437)USD 24,153,000 EURO 20,089,798 23,838,663 16-Feb-06 314,337

HSBCUSD 1,984,359 GBP 1,155,000 1,987,510 11-May-06 (3,151)

Morgan StanleyUSD 4,271,255 CHF 5,275,000 4,036,532 23-Feb-06 234,723USD 2,662,375 GBP 1,475,000 2,536,792 23-Feb-06 125,583

Total $(2,870,449)



Global Technology Fund




Common Stock 96.0% Electronic Components – SemiconductorsApplications Software 73,495 Advanced Micro Devices, Inc. *********** 2.8% $ 2,240,863

54,320 Citrix Systems, Inc. ******************* 1.9 $ 1,560,614 1,158,891 ARM Holdings PLC ******************* 3.0 2,412,03110,126 Infosys Technologies, Ltd. ************** 0.8 674,785 24,630 Broadcom Corp. – Class A ************** 1.4 1,159,088

6,220 Mercury Interactive Corp. ************** 0.2 172,854 7,060 International Rectifier Corp. ************ 0.3 227,68558,725 Microsoft Corp.* ********************* 1.9 1,533,310 19,680 MEMC Electronic Materials, Inc. ******** 0.5 437,880

9,845 Quest Software, Inc. ****************** 0.2 143,146 4,240 Nvidia Corp. ************************ 0.2 155,0574,450 Samsung Electronics Co. *************** 3.6 2,903,5155.0 4,084,709

18,991 SOITEC***************************** 0.4 306,172Audio and Video Products 25,475 Spansion Inc. – Class A **************** 0.4 354,867

13,800 Sony Corp. ************************** 0.7 564,077 67,225 Texas Instruments, Inc. **************** 2.7 2,180,779Cellular Telecommunications 15.3 12,377,937

3,300 Hikari Tsushin, Inc.* ****************** 0.4 309,795Electronic Forms

Chemicals – Diversified 28,548 Adobe Systems, Inc. ****************** 1.3 1,054,5636,000 Shin-Etsu Chemical Co., Ltd. *********** 0.4 318,521

Electronic Measuring InstrumentsCommercial Services – Finance 12,300 Advantest Corp. ********************** 1.5 1,240,222

19,845 Paychex, Inc. ************************ 0.9 756,690Energy-Alternative Sources

Computer Aided Design 2,610 Sunpower Corp. – Class A ************** 0.1 87,67027,439 Dassault Systemes S.A. **************** 1.9 1,548,947 8,700 Suntech Power Holdings Co., Ltd. ******* 0.3 238,815

Computer Services 0.4 326,48520,860 Atos Origin S.A. ********************* 1.7 1,374,107

Enterprise Software and Services3,490 Ceridian Corp. *********************** 0.1 86,447129,680 Oracle Corp. ************************ 1.9 1,583,393293,254 LogicaCMG PLC********************** 1.1 892,837

9,778 SAP A.G. *************************** 2.2 1,772,0102.9 2,353,391

4.1 3,355,403Computers

Entertainment Software203,060 Acer, Inc. *************************** 0.6 511,36968,577 Activision, Inc. *********************** 1.2 940,87636,030 Dell, Inc. *************************** 1.3 1,078,73821,470 Electronic Arts, Inc. ******************* 1.3 1,122,88110,640 Hewlett-Packard Co. ****************** 0.4 305,794

2.5 2,063,75718,455 Research In Motion, Ltd. *************** 1.6 1,219,32148,545 Sun Microsystems, Inc. **************** 0.2 201,462 Industrial Automatic and Robot

6,110 Cognex Corp. *********************** 0.2 183,7284.1 3,316,684

Internet Connective ServicesComputer-Integrated Systems19,595 NDS Group PLC (ADR) **************** 1.0 805,35511,035 3D Systems************************** 0.2 196,864

Internet SecurityComputers – Memory Devices37,320 Check Point Software161,435 EMC Corp. ************************* 2.7 2,214,888

Technologies, Ltd. ****************** 0.9 749,3862,745 SanDisk Corp. *********************** 0.2 172,3048,600 McAfee, Inc. ************************* 0.3 234,6082.9 2,387,192

1.2 983,994Computers – Peripheral EquipmentMiscellaneous Manufacturing52,639 Logitech International S.A. ************* 3.0 2,444,412

14,860 Applied Films Corp. ****************** 0.4 307,305Data Processing and ManagementNetworking Products10,490 NAVTEQ Corp. ********************** 0.6 469,218

115,255 Cisco Systems, Inc. ******************* 2.5 1,968,555Diversified Operations162,000 D-Link Corp. ************************ 0.2 185,68766,000 Hutchison Whampoa, Ltd. ************* 0.8 628,640

51,620 Juniper Networks, Inc. **************** 1.4 1,149,061E-Commerce and Products 4.1 3,303,303

27,290 Amazon.com, Inc. ******************** 1.5 1,286,450Retail – Consumer Electronics11,660 Submarino S.A. ********************** 0.3 207,074

80,325 Carphone Warehouse PLC************** 0.5 382,7241.8 1,493,524Semiconductor Components – Integrated CircuitsE-Commerce and Services

84,740 Cypress Semiconductor Corp. ********** 1.5 1,219,40922,830 eBay, Inc. *************************** 1.2 986,94145,985 Marvell Technology Group, Ltd. ********* 3.1 2,578,838

Electric Products – Miscellaneous 31,725 Maxim Integrated Products, Inc. ********* 1.4 1,149,397123,000 Toshiba Corp. *********************** 0.9 734,328 451,000 Powerchip Semiconductor Corp. ******** 0.4 297,363

662,992 Taiwan SemiconductorElectronic Components – MiscellaneousManufacturing Co., Ltd. ************* 1.6 1,264,865500,968 Hon Hai Precision

Industry Co., Ltd. ****************** 3.4 2,752,571 8.0 6,509,87223,900 Koninklijke (Royal) Philips

Electronics N.V. ******************** 0.9 742,623

4.3 3,495,194






Semiconductor Equipment Purchased Sold Value $U.S. Date (Depreciation)37,215 Applied Materials, Inc. **************** 0.8% $ 667,26542,000 ASML Holding N.V. – Credit Suisse First Boston

New York Shares ******************* 1.0 842,100 JPY 22,000,000 USD 187,362 $ 187,144 27-Jan-06 $ (218)31,205 Kla-Tencor Corp. ********************* 2.0 1,538,406 USD 2,698,740 EURO 2,200,000 2,607,668 27-Jan-06 91,072

3.8 3,047,771 USD 938,783 JPY 107,500,000 914,453 27-Jan-06 24,330USD 3,582,000 EURO 2,963,058 3,515,981 16-Feb-06 66,019Telecommunication EquipmentEURO 19,760,958 USD 24,270,000 23,448,460 16-Feb-06 (821,540)33,030 ADTRAN, Inc. *********************** 1.2 981,982

31,740 Harris Corp. ************************* 1.7 1,379,420 HSBCEURO 300,000 USD 354,750 357,674 11-May-06 2,9242.9 2,361,402USD 951,680 EURO 800,000 953,798 11-May-06 (2,118)Telecommunication Equipment – Fiber OpticsUSD 622,662 GBP 360,000 619,484 11-May-06 3,17890,085 Corning, Inc. ************************ 2.2 1,792,692USD 1,028,665 TWD 34,000,000 1,052,363 11-May-06 (23,698)

Telecommunication Services USD 520,804 KWN 542,000,000 537,756 11-May-06 (16,952)29,255 Amdocs, Ltd. ************************ 1.0 805,975

Morgan StanleyTelevision GBP 180,000 USD 320,818 309,575 23-Feb-06 (11,243)

111,616 British Sky Broadcasting Group PLC ****** 1.2 953,236 TWD 12,000,000 USD 360,360 368,472 23-Feb-06 8,112USD 1,895,250 GBP 1,050,000 1,805,852 23-Feb-06 89,398Web Portals and Internet Service ProvidersUSD 1,414,009 JPY 157,500,000 1,344,140 23-Feb-06 69,869712 Yahoo! Japan Corp. ******************* 1.3 1,080,801USD 881,078 KWN 915,000,000 906,884 23-Feb-06 (25,806)87,170 Yahoo!, Inc. ************************* 4.2 3,413,577USD 1,047,591 TWD 35,000,000 1,074,709 23-Feb-06 (27,118)5.5 4,494,378

Total $(573,791)Wireless Equipment57,210 Motorola, Inc.************************ 1.6 1,303,816

178,128 Nokia Oyj*************************** 4.0 3,255,52013,120 Qualcomm, Inc. ********************** 0.7 564,16013,050 Telefonaktiebolaget LM Ericsson ********* 0.6 448,137

6.9 5,571,633

Total Common Stock (Cost $61,335,341) **************96.0 78,010,862


4.26%, dated 30/12/05 maturing3/1/06, to be repurchased at$3,600,101 collateralised by$72,135,000 in Fannie Mae 0.00%due 1/6/31, with a value of$3,672,103 (Cost $3,600,000) ******** 4.4 3,600,000

Total Repurchase Agreement (Cost $3,600,000) ********** 4.4 3,600,000

Total Investments (Cost $64,935,341)****************100.4 81,610,862

Liabilities in excess of other assets ******************** (0.4) (354,673)

Net Assets attributable to holders of redeemableordinary shares ********************************100.0 $81,256,189




US All Cap Growth Fund




E-Commerce and ServicesCommon Stock 99.8%46,230 eBay, Inc. **************************1.1% $ 1,998,523

Aerospace and DefenseElectronic Components – Semiconductors34,555 Boeing Co. *************************1.4 $ 2,461,698

4,410 Samsung Electronics Co., Ltd. *********1.2 2,141,688Apparel Manufacturers 1,795 Texas Instruments, Inc. ***************0.0 58,230

36,000 Coach, Inc. ************************0.7 1,208,5201.2 2,199,918107,015 Quiksilver, Inc. *********************0.8 1,483,228

Electronic Forms1.5 2,691,74892,505 Adobe Systems, Inc. *****************1.9 3,417,135

Applications SoftwareEnterprise Software and Services36,665 Citrix Systems, Inc. ******************0.6 1,053,385

121,765 Oracle Corp. ***********************0.8 1,486,75141,805 Mercury Interactive Corp. *************0.7 1,161,76170,965 SAP A.G. (ADR) *********************1.8 3,231,03691,075 Microsoft Corp.* ********************1.3 2,377,969

2.6 4,717,7872.6 4,593,115Entertainment SoftwareAthletic Footwear

39,640 Electronic Arts, Inc. ******************1.2 2,073,17226,570 Nike, Inc. – Class B* *****************1.3 2,324,078Finance – Credit CardAudio and Video Products

19,405 American Express Co. ****************0.6 991,7909,815 Harman International49,100 Credit Saison Co., Ltd. ***************1.3 2,452,501Industries, Inc. *******************0.5 955,588

1.9 3,444,291Building – Mobile Homes andFinance – Investment Bankers and BrokersManufactured Housing

46,330 Citigroup, Inc. **********************1.3 2,250,71139,795 Thor Industries, Inc. *****************0.9 1,612,49322,280 Merrill Lynch & Co., Inc. *************0.8 1,513,926Building – Residential and Commercial

114,000 Mitsubishi UFJ Securities Co., Ltd. *****0.8 1,425,00023,510 Pulte Homes, Inc. *******************0.5 938,51919,028 UBS A.G. **************************1.0 1,807,776

Casino Services 3.9 6,997,41360,550 Scientific Games Corp. – Class A********0.9 1,649,988

Finance – Mortgage Loan and BankerCellular Telecommunications 37,240 Fannie Mae*************************1.0 1,788,637

309,000 China Mobile Hong Kong, Ltd. ********0.8 1,458,637Finance – Other Services5,230 China Mobile Hong Kong

3,205 Chicago Mercantile ExchangeLtd. (ADR) ***********************0.1 127,926Holdings, Inc. ********************0.7 1,179,6960.9 1,586,563

23,714 Deutsche Boerse A.G. ****************1.3 2,423,583Commercial Banks 2.0 3,603,279

375 Mizuho Financial Group, Inc. **********1.7 2,957,514Financial Guarantee Insurance

Commercial Services 32,855 MBIA, Inc.* ************************1.1 1,993,97027,265 CoStar Group, Inc. ******************0.7 1,177,030

Food – Retail52,700 Park24 Co., Ltd. ********************1.0 1,877,03575,530 Whole Foods Market, Inc. ************3.3 5,841,4901.7 3,054,065

Food – Wholesale and DistributionComputer Services49,910 Sysco Corp.* ***********************0.9 1,563,68054,145 Ceridian Corp. **********************0.8 1,341,172

Hazardous Waste DisposalComputers25,690 Stericycle, Inc. **********************0.8 1,509,28829,145 Apple Computer, Inc. ****************1.2 2,089,405

Hotels and Motels58,580 Hewlett-Packard Co. *****************0.9 1,683,58963,640 Four Seasons Hotels, Inc. *************1.8 3,166,0902,238,000 Levono Group, Ltd. ******************0.6 1,031,915

48,850 Research In Motion, Ltd. **************1.8 3,227,520 Independent Power Producer4.5 8,032,429 28,145 Reliant Energy, Inc. ******************0.2 288,486

Computers – Memory Devices Medical – Biomedical and Genetic129,670 EMC Corp. ************************1.0 1,779,072 36,575 Alexion Pharmaceuticals, Inc. **********0.4 740,644

33,295 SanDisk Corp. **********************1.2 2,089,928 113,450 Celgene Corp. **********************4.0 7,350,42529,080 Genentech, Inc. *********************1.5 2,678,5582.2 3,869,000

5.9 10,769,627Cosmetics and Toiletries33,505 Procter & Gamble Co. ***************1.1 1,956,357 Medical – Drugs

77,970 Merck & Co., Inc. *******************1.4 2,519,211Data Processing and Management35,835 Roche Holding A.G. *****************3.0 5,376,88656,010 NAVTEQ Corp. *********************1.4 2,505,32718,104 Sanofi-Aventis***********************0.9 1,585,796

Diagnostic Kits5.3 9,481,89342,410 Dade Behring Holdings, Inc. ***********1.0 1,733,721

Medical – Generic DrugsE-Commerce and Products94,785 Teva Pharmaceutical3,505 Blue Nile, Inc. **********************0.1 141,252

Industries, Ltd. *******************2.3 4,079,546






Medical – HMO Transportation – Services47,170 Coventry Health Care, Inc. ************1.5% $ 2,680,199 52,830 C.H. Robinson Worldwide, Inc. ********1.1% $ 1,955,76769,675 UnitedHealth Group, Inc. *************2.5 4,385,345 34,430 United Parcel Service, Inc. –

Class B* *************************1.5 2,611,5154.0 7,065,5442.6 4,567,282Medical – Nursing Homes

27,830 Manor Care, Inc. ********************0.6 1,113,200 Web Portals and Internet Service Providers5,055 Google, Inc. – Class A ****************1.2 2,097,117Medical Instruments

154,300 Yahoo!, Inc. ************************3.4 6,042,38822,050 Intuitive Surgical, Inc. ****************1.4 2,585,8044.6 8,139,50536,850 Medtronic, Inc.**********************1.2 2,131,404

2.6 4,717,208 Wireless Equipment67,040 Crown Castle International Corp. *******1.0 1,793,320Medical Products27,070 QUALCOMM, Inc. ******************0.7 1,164,01069,060 Varian Medical Systems, Inc. ***********2.0 3,519,298

1.7 2,957,330Motorcycle and Motor Scooter35,110 Harley-Davidson, Inc. ****************1.0 1,832,391 Total Common Stock (Cost $153,440,495) ************99.8 178,018,535

Multi-Line InsuranceRepurchase Agreement 0.921,615 American International Group, Inc. *****0.8 1,492,083

$1,600,000 Lehman Brothers Holding, Inc.Networking Products4.26%, dated 30/12/05 maturing150,995 Cisco Systems, Inc. ******************1.4 2,578,9953/1/06 to be repurchased at71,905 Juniper Networks, Inc. ***************0.9 1,600,605$1,600,450 collateralised by

2.3 4,179,600 $4,150,000 in Fannie Mae 0.00%Oil and Gas Drilling due 1/4/33, with a value of

4,195 Transocean, Inc. *********************0.2 291,553 $1,632,459(Cost $1,600,000) *****************0.9 1,600,000Oil Companies – Exploration and Production

27,020 Apache Corp. ***********************1.0 1,840,872 Total Repurchase Agreement (Cost $1,600,000) *********0.9 1,600,00019,240 EOG Resources, Inc. *****************0.8 1,411,062

Total Investments (Cost $155,040,495)**************100.7 179,618,5351.8 3,251,934

Oil Companies – Integrated Liabilities in excess of other assets ******************* (0.7) (1,285,372)26,210 Exxon Mobil Corp. ******************0.8 1,474,050

Net Assets attributable to holders of redeemableOptical Supplies ordinary shares *******************************100.0 $178,333,163

25,325 Alcon, Inc. *************************1.8 3,282,120

Pharmacy Services36,965 Caremark Rx, Inc. *******************1.1 1,920,332 * All or part of these securities were out on loan as at 31 December 2005. See note 7.

Publishing – Newspapers32,420 Dow Jones & Co., Inc. ***************0.7 1,161,284 Forward Currency Contracts, Open at 31 December 2005

Retail – Apparel and ShoeCurrency Unrealised48,950 Nordstrom, Inc.* ********************1.0 1,830,730

Currency Currency Market Settle Appreciation/40,105 Urban Outfitters, Inc. ****************0.6 1,014,657Purchased Sold Value $U.S. Date (Depreciation)1.6 2,845,387

Retail – Jewelry Credit Suisse First Boston53,800 Tiffany & Co.* **********************1.2 2,075,066 EURO 28,062,988 USD 34,292,000 $33,299,694 16-Feb-06 $(992,306)

Semiconductor Components – Integrated Circuits USD 11,925,000 EURO 9,997,253 11,862,795 16-Feb-06 62,20558,450 Cypress Semiconductor Corp. *********0.5 841,096

Total $(930,101)Semiconductor Equipment

31,660 Kla-Tencor Corp. ********************0.9 1,560,838

Soap and Cleaning Preparations40,586 Reckitt Benckiser PLC ****************0.8 1,340,394

Therapeutics56,095 Neurocrine Biosciences, Inc. ***********1.9 3,517,15622,205 United Therapeutics Corp. ************0.9 1,535,032

2.8 5,052,188



US Fundamental Equity Fund




Common Stock 96.3% Machinery – Construction and MiningAerospace and Defense 66,940 Komatsu, Ltd. *********************** 2.0% $ 1,104,124

14,100 Lockheed Martin Corp.* *************** 1.6 $ 895,773 Medical – Biomedical and GeneticApplications Software 21,975 Celgene Corp. *********************** 2.5 1,423,760

70,535 Microsoft Corp.* ********************* 3.3 1,841,669 Medical – DrugsAudio and Video Products 6,325 Eli Lilly & Co. *********************** 0.6 363,182

2,960 Harman International 5,930 Forest Laboratories, Inc. *************** 0.4 243,664Industries, Inc. ******************** 0.5 288,186 32,620 Pfizer, Inc. ************************** 1.4 764,939

8,160 Roche Holding A.G. ****************** 2.3 1,224,372Automotive – Cars and Light Trucks5,136 Sanofi-Aventis************************ 0.8 449,8818,355 Bayerische Motoren Werke A.G. ********* 0.7 365,626

5.5 3,046,038Beverages – Non-AlcoholicMedical – HMO13,990 PepsiCo, Inc. ************************ 1.5 832,265

20,825 Aetna, Inc. ************************** 3.6 1,993,577Broadcast Services and Programming10,950 Coventry Health Care, Inc. ************* 1.1 622,17920,600 Clear Channel

4.7 2,615,756Communications, Inc.* ************** 1.2 652,814Networking ProductsCasino Hotels

22,505 Cisco Systems, Inc. ******************* 0.7 384,38516,530 Harrah’s Entertainment, Inc. ************ 2.1 1,186,689Oil-Field ServicesCellular Telecommunications

8,690 Halliburton Co. ********************** 1.0 533,56618,830 Nextel Partners, Inc. – Class A*********** 0.9 525,734Oil Companies – Exploration and ProductionCommercial Services

12,195 Apache Corp. ************************ 1.5 830,8452,683 Live Nation, Inc.********************** 0.1 35,41712,360 EnCana Corp. *********************** 1.0 554,346

Cosmetics and Toiletries 9,165 EOG Resources, Inc. ****************** 1.2 672,16124,920 Procter & Gamble Co. **************** 2.6 1,455,079

3.7 2,057,352Diversified Manufacturing Operations

Oil Companies – Integrated47,280 General Electric Co.* ****************** 2.9 1,663,78312,885 Amerada Hess Corp.* ***************** 2.9 1,619,38720,670 Honeywell International, Inc. *********** 1.4 777,60510,945 BP PLC (ADR) *********************** 1.3 702,66927,845 Tyco International, Ltd. **************** 1.4 804,72133,100 Exxon Mobil Corp. ******************* 3.2 1,861,543

5.7 3,246,109 23,371 Suncor Energy, Inc. ******************* 2.6 1,474,412E-Commerce and Services 380 Total S.A. (ADR)********************** 0.1 48,093

36,252 Expedia, Inc. ************************ 1.6 868,235 2,164 Total S.A. – Class B******************** 1.0 543,555

Electronic Components – Semiconductors 11.1 6,249,65991,755 Advanced Micro Devices, Inc. *********** 4.9 2,797,609 Oil Refining and Marketing

770 Samsung Electronics Company, Ltd. **** 0.7 373,946 6,388 Valero Energy Corp. ****************** 0.6 329,3011,050 Samsung Electronics Company,

ReinsuranceLtd. (GDR) ************************ 1.2 685,099203 Berkshire Hathaway, Inc. – Class B ******* 1.1 597,22638,790 Texas Instruments, Inc. **************** 2.3 1,258,347

Retail – Consumer Electronics9.1 5,115,0016,962 Best Buy Company, Inc. *************** 0.5 305,841

Electronic FormsRetail – Jewelry18,225 Adobe Systems, Inc. ****************** 1.2 673,232

23,870 Tiffany & Co.* *********************** 1.6 920,666Enterprise Software and Services

Retail – Regional Department Stores98,575 Oracle Corp. ************************ 2.2 1,203,60110,095 Federated Department Stores, Inc.* ****** 1.2 671,01512,325 SAP A.G. (ADR) ********************** 1.0 561,157

Semiconductor Components – Integrated Circuits3.2 1,764,7587,025 Linear Technology Corp. *************** 0.5 253,041Entertainment Software

12,395 Maxim Integrated Products, Inc. ********* 0.8 449,0708,905 Electronic Arts, Inc. ******************* 0.8 465,7321.3 702,111

Finance – Investment Bankers and BrokersTelecommunication Equipment – Fiber Optics28,230 Citigroup, Inc. *********************** 2.5 1,371,413

24,330 Corning, Inc. ************************ 0.9 484,16736,395 JPMorgan Chase & Co.* *************** 2.5 1,449,61327,625 Merrill Lynch & Company, Inc. ********* 3.3 1,877,119 Television

90,048 British Sky Broadcasting Group PLC ****** 1.4 769,0398.3 4,698,145

TherapeuticsFood – Canned7,965 Gilead Sciences, Inc. ****************** 0.7 418,64014,395 TreeHouse Foods, Inc. ***************** 0.5 268,179

40,495 MGI Pharma, Inc. ******************** 1.3 694,489Food – Retail8,125 Neurocrine Biosciences, Inc. ************ 0.9 509,4388,000 Whole Foods Market, Inc. ************* 1.1 618,720

2.9 1,622,567Hotels and Motels

4,630 Four Seasons Hotels, Inc. ************** 0.4 230,343






Transportation – Railway Purchased Sold Value $U.S. Date (Depreciation)14,362 Canadian National Railway Co. ********* 2.1% $ 1,158,870

7,450 Union Pacific Corp.* ****************** 1.1 603,450 Credit Suisse First Boston3.2 1,762,320 USD 50,024 JPY 5,899,095 $ 50,039 5-Jan-06 $ (15)

EURO 41,276,471 USD 49,927,000 48,978,885 16-Feb-06 (948,115)Transportation – ServicesUSD 6,792,000 EURO 5,514,728 6,716,376 16-Feb-06 75,6243,210 FedEx Corp. ************************ 0.6 333,198USD 48,359 CAD 56,329 48,468 1-Mar-06 (109)

Web Portals and Internet Service Providers USD 51,478 CHF 67,693 51,532 1-Mar-06 (54)41,055 Yahoo!, Inc. ************************* 2.9 1,607,714 USD 42,083 EURO 180,942 42,034 1-Mar-06 49

Wireless Equipment USD 32,453 GBP 18,873 32,463 1-Mar-06 (10)15,715 Nokia Oyj (ADR) ********************* 0.5 290,413 CAD 359,418 USD 308,726 309,266 1-Apr-06 540

Total Common Stock (Cost $47,444,581) **************96.3 53,837,924 Total $(872,090)


4.26%, dated 30/12/05 maturing3/1/06, to be repurchased at$1,100,994 collateralised by$2,060,000 in Fannie Mae 0.00%due 1/9/33, with a valueof $1,123,014(Cost $1,100,000) ****************** 2.0 1,100,000

Total Repurchase Agreement (Cost $1,100,000) ********** 2.0 1,100,000

Total Investments (Cost $48,544,581)*****************98.3 54,937,924

Cash, Receivables, and Other assets in excessof liabilities ************************************* 1.7 948,572

Net Assets attributable to holders of redeemableordinary shares ********************************100.0 $55,886,496




US Strategic Value Fund




Common Stock 95.0% Electric – IntegratedAdvertising Agencies 140,000 DPL, Inc. *************************1.3% $ 3,634,400

23,000 Omnicom Group, Inc. ***************0.7 $ 1,963,970 Electric Products – MiscellaneousApparel Manufacturers 20,000 Emerson Electric Co. ****************0.5 1,508,000

51,000 Jones Apparel Group, Inc. ***********0.5 1,566,720 Electronic Components – MiscellaneousAutomotive and Truck – Parts and Equipment – 110,000 Flextronics International, Ltd. ********0.4 1,147,300Original 107,000 Vishay Intertechnology, Inc. **********0.5 1,474,460

21,000 Autoliv, Inc. ***********************0.3 958,440 0.9 2,621,76040,000 Magna International, Inc. –

Electronic Components – SemiconductorsClass A *************************1.0 2,858,00086,000 QLogic Corp. **********************1.0 2,795,860

1.3 3,816,440 39,000 Xilinx, Inc. ************************0.3 981,240Brewery 1.3 3,777,100

25,000 Molson Coors Brewing Co. –Engineering – Research and DevelopmentClass B *************************0.6 1,673,750Services

Broadcast Services and Programming 25,000 Jacobs Engineering Group, Inc. *******0.6 1,711,500225,000 Liberty Media Corp. – Class A*********0.6 1,766,250

Fiduciary BanksBuilding – Residential and Commercial 68,000 Bank of New York Company, Inc. *****0.8 2,173,960

50,000 Pulte Homes, Inc.*******************0.7 1,996,000 95,000 Mellon Financial Corp. **************1.1 3,283,20025,000 State Street Corp. ******************0.5 1,399,500Chemicals – Specialty

85,000 Lubrizol Corp. *********************1.3 3,706,850 2.4 6,856,660

Coal Finance – Commercial27,000 Arch Coal, Inc. ********************0.7 2,128,680 40,000 CIT Group, Inc. ********************0.7 2,065,600

Commercial Banks – Eastern U.S. Food – Confectionery52,000 Valley National BanCorp. ************0.4 1,255,280 54,000 J.M. Smucker Co. ******************0.8 2,394,900

Commercial Banks – Southern U.S. Food – Miscellaneous and Diversified48,100 Compass Bancshares, Inc. ************0.9 2,320,825 64,000 Corn Products International, Inc.* *****0.6 1,549,44025,522 Synovus Financial Corp. *************0.2 692,157 45,000 H.J. Heinz Co. *********************0.5 1,530,900

1.1 3,012,982 1.1 3,080,340

Commercial Services Food – Retail144,000 ServiceMaster Co. ******************0.6 1,726,560 35,200 Albertson’s, Inc. ********************0.3 752,224

Commercial Services – Finance Food – Wholesale and Distribution77,000 H&R Block, Inc. *******************0.7 1,877,260 71,000 Supervalu, Inc. ********************0.8 2,327,380

Computers – Integrated Systems Forestry53,000 Diebold, Inc. **********************0.7 2,023,540 40,000 Plum Creek Timber

Company, Inc. *******************0.5 1,457,600Containers – Metal and Glass44,000 Ball Corp. ************************0.6 1,745,480 Hotels and Motels

40,000 Fairmont Hotels & Resorts, Inc. *******0.6 1,703,600Cosmetics and Toiletries85,000 Hilton Hotels Corp. *****************0.7 2,039,15085,000 Alberto-Culver Co. *****************1.3 3,918,500

78,000 Avon Products, Inc. *****************0.8 2,232,360 1.3 3,742,75040,000 Estee Lauder Companies, Inc. – Human Resources

Class A *************************0.5 1,340,400 21,900 Hewitt Associates, Inc. – Class A *******0.2 601,8122.6 7,491,260 48,000 Manpower, Inc. ********************0.8 2,268,000

Data Processing and Management 1.0 2,869,81247,000 First Data Corp.* *******************0.7 2,025,700 Industrial Gases

Diagnostic Equipment 30,000 Air Products & Chemicals, Inc.********0.6 1,786,80031,000 Cytyc Corp. ***********************0.3 874,820 Instruments – Scientific

Distribution and Wholesale 23,000 Fisher Scientific International, Inc. *****0.5 1,417,03088,000 Tech Data Corp. *******************1.2 3,485,680 Insurance – Brokers32,000 W.W. Grainger, Inc. ****************0.8 2,294,400 65,000 Arthur J. Gallagher & Company* *****0.7 2,011,100

2.0 5,780,080 Internet Infrastructure EquipmentDiversified Manufacturing Operations 53,000 Avocent Corp. *********************0.5 1,440,010

39,000 Dover Corp. ***********************0.6 1,592,760 Internet Security103,000 Tyco International, Ltd. **************1.0 2,976,700 90,000 Check Point Software

1.6 4,569,460 Technologies, Ltd. ****************0.7 1,807,20053,000 Symantec Corp. ********************0.3 927,500Diversified Operations and Commercial Services

85,000 Cendant Corp. *********************0.5 1,429,700 1.0 2,734,700






Investment Management and Advisory Services Oil Companies – Exploration and Production140,800 Alliance Capital Management 35,000 Anadarko Petroleum Corp. ***********1.1% $ 3,277,750

Holding LP **********************2.8% $ 7,932,672 13,000 Apache Corp. **********************0.3 885,69040,000 Federated Investors, Inc. – Class B *****0.5 1,480,800 38,000 Cimarex Energy Co. ****************0.6 1,622,980

120,000 Waddell & Reed Financial, Inc. – 45,000 Forest Oil Corp. *******************0.7 2,044,350Class A *************************0.9 2,528,400 32,000 Houston Exploration Co. ************0.6 1,672,320

40,000 Murphy Oil Corp. ******************0.7 2,144,8004.2 11,941,87295,000 Newfield Exploration Co. ************1.7 4,725,299

Machinery – Farming 90,000 Noble Energy, Inc. *****************1.3 3,618,00034,000 Deere & Co.* **********************0.8 2,332,740 31,000 St Mary Land & Exploration Co. *****0.4 1,136,460

Medical – Drugs 52,400 Stone Energy Corp. *****************0.8 2,380,00848,000 Endo Pharmaceuticals 8.2 23,507,657

Holdings, Inc. *******************0.5 1,450,080Oil Companies – Integrated

Medical – Generic Drugs 30,000 Marathon Oil Corp. *****************0.6 1,822,800160,000 Perrigo Co. ***********************0.8 2,384,000

Paper and Related ProductsMedical – Hospitals 54,100 Potlatch Corp. *********************1.0 2,796,429

88,000 Health Management 50,000 Rayonier, Inc. *********************0.7 2,018,500Associates, Inc. – Class A ***********0.7 1,943,040 180,000 Smurfit-Stone Container Corp. ********0.9 2,547,000

56,000 LifePoint Hospitals, Inc. *************0.7 2,099,440 35,000 Temple-Inland, Inc. *****************0.5 1,566,6001.4 4,042,480 3.1 8,928,529

Medical – Nursing Homes Pharmacy Services80,000 Manor Care, Inc. *******************1.1 3,200,000 33,000 Omnicare, Inc. *********************0.7 1,909,380

Medical Instruments Pipelines33,000 Beckman Coulter, Inc. **************0.6 1,889,580 18,000 Western Gas Resources, Inc.* *********0.3 851,76055,000 Boston Scientific Corp. **************0.5 1,359,050

Publishing – Newspapers1.1 3,248,630 46,000 Tribune Co. ***********************0.5 1,403,920

Medical Labs and Testing Services Publishing – Periodicals80,000 Laboratory Corporation of 60,000 Reader’s Digest Association, Inc. *******0.3 919,200

America Holdings*****************1.5 4,312,000Radio

Medical Products 145,000 Cox Radio, Inc. – Class A*************0.7 2,079,30054,000 Biomet, Inc. ***********************0.7 1,973,700 80,000 Westwood One, Inc. ****************0.5 1,308,80033,000 Henry Schein, Inc. *****************0.5 1,438,140

1.2 3,388,10026,000 The Cooper Companies, Inc. *********0.5 1,335,360Real Estate Investment Trusts – Health Care1.7 4,747,200

86,000 Health Care PropertyMedical Sterilization Products Investors, Inc. *******************0.8 2,217,940

60,000 STERIS Corp. *********************0.5 1,519,200Real Estate Investment Trusts – Office Property

Multi-Line Insurance 10,000 Alexandria Real Estate219,000 Old Republic International Corp.* *****2.0 5,781,600 Equities, Inc.* *******************0.3 805,000

Multimedia 60,000 BioMed Realty Trust, Inc.*************0.5 1,466,40055,000 McGraw-Hill Companies, Inc. ********1.0 2,885,850 0.8 2,271,400

Networking Products Real Estate Investment Trusts – Outlet Centers72,000 Foundry Networks, Inc. *************0.3 994,320 39,000 Trustreet Properties, Inc.* ************0.2 567,840

Non-Hazardous Waste Disposal Real Estate Investment Trusts – Shopping54,000 Republic Services, Inc.* **************0.7 2,042,280 Centers

108,000 Waste Management, Inc.* ************1.2 3,284,280 73,000 Equity One, Inc. *******************0.6 1,680,4601.9 5,326,560 Real Estate Investment Trusts – Warehouse

Office Automation and Equipment and Industry174,300 Xerox Corp. ***********************0.9 2,565,696 42,000 ProLogis **************************0.7 1,970,220

Oil-Field Services Reinsurance34,000 B.J. Services Co. *******************0.4 1,246,780 2,100 Berkshire Hathaway, Inc. – Class B *****2.2 6,178,200

148,300 IPC Holdings, Ltd. *****************1.4 4,060,454Oil and Gas Drilling8,000 Nabors Industries, Ltd. **************0.2 603,040 3.6 10,238,654

27,000 Precision Drilling Trust **************0.3 881,820 Retail – Apparel and Shoe0.5 1,484,860 48,000 Aeropostale, Inc. *******************0.4 1,263,840

106,000 Gap, Inc.**************************0.7 1,888,92060,000 Talbots, Inc. ***********************0.6 1,671,600

1.7 4,824,360



US Strategic Value Fund




Retail – Drug Store Transportation – Truck101,000 CVS Corp. ************************0.9% $ 2,682,560 135,000 J.B. Hunt Transport Services, Inc. *****1.1% $ 3,049,650

Retail – Major Department Store Wireless Equipment52,000 Saks, Inc. *************************0.3 876,720 250,000 Wireless Facilities, Inc. **************0.4 1,275,000

Retail – Restaurants Total Common Stock (Cost $254,788,188) ************95.0 272,539,18475,000 Applebee’s International, Inc. *********0.6 1,693,500

Rubber – Tires Repurchase Agreement 6.9158,000 Cooper Tire & Rubber Co. ***********0.9 2,453,740 $19,800,000 Lehman Brothers Holding, Inc.

4.26%, dated 30/12/05Savings and Loan and Thrifts – Eastern U.S.maturing 3/1/06, to be87,000 Astoria Financial Corp. **************0.9 2,571,720repurchased at $19,801,924

Savings and Loans and Thrifts – Western U.S. collateralised by $48,548,064 in69,938 Washington Federal, Inc. ************0.6 1,604,378 Fannie Mae, Freddie Mac

Super-Regional Banks – U.S. Federal Home Loan Mortgage27,000 PNC Financial Services Group*********0.6 1,680,750 0.00%, due 1/8/34-1/9/34, with50,000 SunTrust Banks, Inc. ****************1.3 3,659,500 a value of $20,100,671

(Cost $19,800,000) ***************6.9 19,800,0001.9 5,340,250

Telecommunication Equipment Total Repurchase Agreement (Cost $19,800,000) ********6.9 19,800,000142,000 Andrew Corp. *********************0.5 1,522,240

Total Investments (Cost $274,588,188)**************101.9 292,339,18477,000 Avaya, Inc. ************************0.3 833,140

0.8 2,355,380 Liabilities in excess of other assets ******************* (1.9) (5,392,408)Telephone – Integrated

Net Assets attributable to holders of redeemable38,000 Alltel Corp. ***********************0.8 2,402,360ordinary shares *******************************100.0 $286,946,77688,000 CenturyTel, Inc. ********************1.1 2,948,000

1.9 5,350,360

Television * All or part of these securities were out on loan as at 31 December 2005. See note 7.60,000 Univision Communications, Inc. –

Class A *************************0.6 1,774,200Forward Currency Contracts, Open at 31 December 2005

Toys110,000 Mattel, Inc. ***********************0.6 1,750,100 Currency Unrealised

Currency Currency Market Settle Appreciation/Transportation – RailwayPurchased Sold Value $U.S. Date (Depreciation)103,000 Kansas City Southern****************0.9 2,543,070

74,000 Norfolk Southern Corp. *************1.2 3,328,520Credit Suisse First Boston47,000 Union Pacific Corp. *****************1.3 3,807,000EURO 97,832,015 USD 120,561,000 $116,088,001 16-Feb-06 $(4,472,999)3.4 9,678,590USD 29,846,000 EURO 24,864,168 29,503,957 16-Feb-06 342,043

Transportation – Services150,000 Laidlaw International, Inc. ***********1.2 3,496,500 Total $(4,130,956)



US Twenty Fund




Common Stock 85.7% Retail – Auto PartsAthletic Footwear 203,327 Advance Auto Parts, Inc. *************2.4% $ 8,568,200

156,090 Nike, Inc. – Class B* ****************3.9 $ 13,653,192 Retail – RestaurantsCasino Hotels 56,065 Starbucks Corp. ********************0.5 1,680,268

123,695 Harrah’s Entertainment, Inc. **********2.5 8,880,064 Super-Regional Banks – U.S.Chemicals – Specialty 244,115 Wells Fargo & Co. ******************4.3 15,396,333

41,334 Syngenta A.G. *********************1.4 5,135,284 TherapeuticsCoal 373,925 Gilead Sciences, Inc. ****************5.5 19,653,498

31,510 Peabody Energy Corp. ***************0.7 2,570,901 Web Portals and Internet Service ProvidersComputers 24,780 Google, Inc. ***********************2.9 10,280,231

83,900 Research In Motion, Ltd. *************1.6 5,543,273 274,825 Yahoo!, Inc. ***********************3.0 10,762,147

5.9 21,042,378Cosmetics and Toiletries252,880 Procter & Gamble Co. **************4.2 14,765,663 Wireless Equipment

85,175 Qualcomm, Inc. *******************1.0 3,662,525E-Commerce and Services326,695 eBay, Inc. *************************4.0 14,123,025

Total Common Stock (Cost $215,666,560) ************85.7 303,877,914Entertainment Software

225,385 Electronic Arts, Inc. *****************3.3 11,787,636 Repurchase Agreement 14.2$50,500,000 Lehman Brothers Holding, Inc.Finance – Consumer Loans

4.26%, dated 30/12/0559,905 SLM Corp.* ***********************0.9 3,290,582maturing 3/1/06, to beFinance – Investment Bankers and Brokersrepurchased at $50,500,93550,860 Goldman Sachs Group, Inc. **********1.8 6,522,795collateralised by $590,397,672

Medical – Biomedical and Genetic in Fannie Mae 0.00%160,150 Celgene Corp. *********************2.9 10,376,119 due 1/4/27 – 1/9/33 with a value214,675 Genentech, Inc. ********************5.7 19,773,713 of $51,510,952

8.6 30,149,832 (Cost $50,500,000) **************14.2 50,500,000

Medical – Drugs Total Repurchase Agreement (Cost $50,500,000) *******14.2 50,500,000123,224 Roche Holding A.G. ****************5.2 18,489,228

Total Investments (Cost $266,166,560)***************99.9 354,377,914Medical – HMO37,000 Aetna, Inc. ************************1.0 3,542,010 Cash, Receivables and Other assets in excess

340,540 UnitedHealth Group, Inc. ************6.0 21,433,588 of liabilities ************************************0.1 253,5787.0 24,975,598

Net Assets attributable to holders of redeemableOil Companies – Exploration and Production ordinary shares *******************************100.0 $354,631,492

147,345 Apache Corp. **********************2.8 10,038,61578,950 EnCana Corp. *********************1.0 3,540,90875,795 EOG Resources, Inc. ****************1.6 5,558,805

* All or part of these securities were out on loan as at 31 December 2005. See note 7.5.4 19,138,328

Oil Companies – Integrated Forward Currency Contracts, Open at 31 December 200539,020 Amerada Hess Corp.* ***************1.4 4,904,034142,695 BP PLC (ADR) *********************2.6 9,161,018 Currency Unrealised303,150 ConocoPhillips *********************5.0 17,503,880 Currency Currency Market Settle Appreciation/

80,895 Exxon Mobil Corp. *****************1.3 4,549,535 Purchased Sold Value $U.S. Date (Depreciation)85,325 Occidental Petroleum Corp.* *********1.9 6,811,495

12.2 42,929,962 Credit Suisse First BostonEURO 61,198,245 USD 75,144,000 $72,618,171 16-Feb-06 $(2,525,829)Oil Refining and MarketingUSD 13,597,000 EURO 11,323,080 13,436,029 16-Feb-06 160,97182,550 Valero Energy Corp. ****************1.2 4,255,453

Optical Supplies Total $(2,364,858)59,135 Alcon, Inc. ************************2.2 7,663,896



US Venture Fund




Common Stock 101.5% Distribution and WholesaleAdvanced Materials and Products 33,950 Beacon Roofing Supply, Inc. **********1.1% $973,347

11,555 Ceradyne, Inc. *********************0.6 $505,416 36,375 Directed Electronics, Inc. ************0.6 521,98117,060 MWI Veterinary Supply, Inc. *********0.5 443,560Aerospace and Defense – Equipment

2.2 1,938,88835,665 K&F Industries Holdings, Inc. ********0.6 542,821

Drug Delivery SystemsAirlines57,230 I-Flow Corp.***********************1.0 834,98622,303 Westjet Airlines, Ltd. ****************0.3 235,273

E-Commerce and ProductsApparel Manufacturers7,925 Baby Universe, Inc. *****************0.1 66,57028,845 Carter’s, Inc. **********************1.9 1,709,644

92,680 Submarino S.A. ********************1.9 1,645,93558,405 Gymboree Corp. *******************1.6 1,364,92556,655 Quiksilver, Inc. ********************0.9 785,238 2.0 1,712,50534,060 Volcom, Inc. **********************1.3 1,154,975 E-Commerce and Services

5.7 5,014,782 320,385 Workstream, Inc. *******************0.6 525,431Applications Software E-Services and Consulting

45,485 American Reprographics Co. *********1.3 1,169,419 54,590 GSI Commerce, Inc. ****************0.9 822,12546,025 Quest Software, Inc. ****************0.8 669,204

Electronic Components – Semiconductors2.1 1,838,623 66,580 MIPS Technologies, Inc. *************0.4 378,840

Building – Residential and Commercial Electronic Measuring Instruments13,845 WCI Communities, Inc. *************0.4 371,184 29,030 Trimble Navigation, Ltd. *************1.2 1,028,823

Casino Services Energy – Alternative Sources107,504 Century Casinos, Inc. ***************1.0 921,309 2,955 Sunpower Corp. – Class A ************0.1 99,258

86,595 Mikohn Gaming Corp. **************1.0 851,229Enterprise Software and Services

2.0 1,772,538 12,020 Emageon, Inc. *********************0.2 190,878Commercial Services 87,100 Omnicell, Inc. *********************1.2 1,037,361

42,970 CoStar Group, Inc. *****************2.1 1,855,015 121,871 Ultimate Software Group, Inc. ********2.6 2,320,423

Commercial Services – Finance 4.0 3,548,66286,760 Euronet Worldwide, Inc. *************2.7 2,411,928 Finance – Other Services37,050 Heartland Payment Systems, Inc.* *****0.9 800,280 12,585 IntercontinentalExchange, Inc. ********0.5 453,060

6,005 Wright Express Corp. ***************0.2 132,230 41,065 International Securities3.8 3,344,438 Exchange, Inc. *******************1.4 1,166,246

Computer Services 1.9 1,619,306207,385 LivePerson, Inc. ********************1.4 1,163,430 Food – Canned

44,380 TechTeam Global, Inc. ***************0.5 446,019 30,875 TreeHouse Foods, Inc. ***************0.7 575,2011.9 1,609,449 Hotels and Motels

Computer Software 11,440 Four Seasons Hotels, Inc. ************0.7 569,14048,320 Blackbaud, Inc. ********************0.9 823,856 22,145 Orient-Express Hotel, Ltd. –

Class A *************************0.8 703,768Computers – Peripheral Equipment55,445 TransAct Technologies, Inc. **********0.5 435,243 1.5 1,272,908

Computers – Voice Recognition Human Resources60,662 TALX Corp. ***********************3.1 2,772,860 22,075 Barrett Business Services, Inc. *********0.7 549,226

7,765 Resources Connection, Inc. ***********0.2 202,589Consulting Services0.9 751,81530,810 Advisory Board Co. *****************1.7 1,468,713

6,220 Huron Consulting Group, Inc. ********0.2 149,031 Identification Systems and Devices1,585 LECG Corp. ***********************0.0 27,484 25,980 Cogent, Inc. ***********************0.7 587,148

35,325 Navigant Consulting, Inc. ************0.9 788,454Industrial Audio and Video Products

2.8 2,433,682 52,000 Sonic Solutions*********************0.9 784,680Consumer Products – Miscellaneous Internet Application Software

56,160 Jarden Corp.***********************2.0 1,696,032 20,260 Dealertrack Holdings, Inc. ***********0.5 424,447Data Processing and Management 25,185 eResearch Technology, Inc. ***********0.4 380,294

143,397 Infocrossing, Inc. *******************1.4 1,237,516 69,560 Valueclick, Inc. ********************1.5 1,260,42715,170 Vocus, Inc. ************************0.2 157,616Decision Support Software

2.6 2,222,78446,860 Wind River Systems, Inc. ************0.8 691,654

Internet Content – Information and NetworkingDirect Marketing149,300 Harris Interactive, Inc. **************0.7 640,497138,280 ValueVision International, Inc. –

Class A *************************2.0 1,740,945






Investment Management/Advisor Services Oil Companies – Exploration and Production28,740 Calamos Asset Management, Inc. – 11,825 Bill Barrett Corp. *******************0.5% $444,029

Class A *************************1.0% $903,586 19,425 Carrizo Oil & Gas, Inc. **************0.6 479,79881,530 Gasco Energy, Inc. *****************0.6 530,760Life and Health Insurance31,578 Synenco Energy, Inc. ****************0.5 462,99225,905 American Equity Investment Life78,595 Western Oil Sands, Inc. – Class A *****2.1 1,880,681Holding Co. *********************0.4 331,066

4.3 3,798,260Marine ServicesOptical Recognition Equipment115,425 Odyssey Marine Exploration, Inc. *****0.5 412,067

63,110 Optimal Robotics Corp. *************1.5 1,278,609Medical – Biomedical and GeneticPharmacy Services30,925 Alexion Pharmaceuticals, Inc. *********0.7 626,231

442,975 Drugmax.com, Inc.* ****************0.6 527,1409,475 Coley Pharmaceutical Group, Inc.******0.2 143,73629,840 HealthExtras, Inc. ******************0.9 748,98419,875 Illumina, Inc. **********************0.3 280,238

1.5 1,276,1241.2 1,050,205

QuarryingMedical – Drugs20,005 Birch Mountain Resources, Ltd. *******0.2 140,23512,615 Adams Respiratory

Therapeutics, Inc. ****************0.6 511,286 Real Estate Management and Services22,845 CB Richard Ellis Group, Inc –Medical – HMO

Class A *************************1.6 1,351,05364,154 Centene Corp. *********************2.0 1,708,421

Research and DevelopmentMedical – Hospitals30,230 PRA International*******************1.0 850,06843,047 United Surgical Partners

International, Inc. ****************1.6 1,380,517 Retail – Apparel and Shoe1,180 Under Armour, Inc. ****************0.1 45,064Medical – Outpatient and Home Medical Care

106,070 Hythiam, Inc. *********************0.7 650,209 Retail – Computer Equipment44,305 LHC Group, Inc. *******************1.0 769,134 28,865 Insight Enterprises, Inc. *************0.7 564,59920,515 Radiation Therapy Services, Inc. *******0.8 721,513

Retail – Petroleum Products2.5 2,140,856 50,220 World Fuel Services Corp. ***********2.0 1,699,445

Medical Instruments Retail – Sporting Goods18,960 AtriCure, Inc. *********************0.2 201,545 24,965 Zumiez, Inc. **********************1.2 1,076,74017,945 DexCom, Inc. *********************0.3 268,996

Schools30,200 ev3, Inc. **************************0.5 445,45017,345 Educate, Inc. **********************0.2 204,49819,700 Foxhollow Technologies, Inc.* ********0.7 584,892

7,450 Symmetry Medical, Inc. *************0.2 148,032 Semiconductor Components – Integrated Circuits6,360 Ventana Medical Systems, Inc. ********0.3 269,664 13,500 Hittite Microwave Corp. *************0.4 309,825

2.2 1,918,579 Semiconductor Equipment7,335 FormFactor, Inc. *******************0.2 179,341Medical Products

43,665 Rudolph Technologies, Inc. **********0.6 561,96857,745 PSS World Medical, Inc. *************1.0 857,51360,970 SeraCare Life Sciences, Inc. ***********0.6 549,340 0.8 741,30953,085 ThermoGenesis Corp. ***************0.3 254,808 Telecommunication Equipment37,820 Wright Medical Group, Inc. **********0.9 768,124 80,345 Arris Group, Inc. *******************0.9 760,867

2.8 2,429,785 TherapeuticsMotion Pictures and Services 48,145 MGI Pharma, Inc. ******************1.0 825,687

187,665 Lions Gate Entertainment Corp.* *****1.6 1,418,747 16,540 Neurocrine Biosciences, Inc. **********1.2 1,037,05810,125 United Therapeutics Corp. ***********0.8 699,941Networking Products37,120 ViaCell, Inc. ***********************0.2 209,72840,535 Ixia ******************************0.7 599,107

3.2 2,772,414Non-Hazardous Waste Disposal136,890 Waste Services, Inc. *****************0.5 457,213 Toys

74,265 Marvel Entertainment, Inc. ***********1.4 1,213,490Office Furnishings – Original35,580 Knoll, Inc. ************************0.7 611,620 Transactional Software

59,270 Open Solutions, Inc. ****************1.6 1,357,283Oil – Field Services14,940 Basic Energy Services, Inc. ***********0.3 288,491 Transportation – Railway40,850 Key Energy Services, Inc. ************0.7 550,250 27,900 All America Latina Logistica S.A. *****1.4 1,190,956

1.0 838,741 Transportation – Services45,880 Pacer International, Inc. *************1.4 1,193,339

Web Hosting and Design32,015 Equinix, Inc. **********************1.5 1,303,651

Total Common Stock (Cost $72,819,154) ************101.5 88,104,809



US Venture Fund




Repurchase Agreement 0.2% Purchased Sold Value $U.S. Date (Depreciation)$200,000 Lehman Brothers Holding, Inc.

4.26%, dated 30/12/05 Credit Suisse First Bostonmaturing 3/1/06, to be EURO 30,762,542 USD 37,870,000 $36,502,999 16-Feb-06 $(1,367,001)repurchased at $200,424 USD 10,598,000 EURO 8,803,065 10,445,764 16-Feb-06 152,236collateralised by $375,000 in

Total $(1,214,765)Fannie Mae 0.00%, due 1/9/33,with a value of $204,432(Cost $200,000)******************0.2 $200,000

Total Repurchase Agreement (Cost $200,000)***********0.2 200,000

Total Investments (Cost $73,019,154)***************101.7 88,304,809

Liabilities in excess of other assets ******************* (1.7) (1,451,773)





US Risk Managed Core Fund




Common Stock 98.2% Building and Construction Products –Advertising Agencies Miscellaneous

16,900 Interpublic Group of 62,400 Vulcan Materials Co. ************** 0.2% $ 4,263,792Companies, Inc. *************** 0.0 $ 163,423 Building Products – Air and Heating

74,500 Omnicom Group, Inc. ************* 0.3 6,361,555 11,300 American Standard0.3 6,524,978 Companies, Inc. *************** 0.0 454,034

Aerospace and Defense Cable Television53,200 Boeing Co. ********************** 0.2 3,789,968 307,900 Comcast Corp. – Class A *********** 0.4 7,974,610

4,300 General Dynamics Corp. *********** 0.0 492,608 Casino Hotels69,600 Lockheed Martin Corp. ************ 0.2 4,421,688 116,500 Harrah’s Entertainment, Inc. ******** 0.4 8,363,53514,900 Northrop Grumman Corp. ********* 0.0 892,212

Chemicals – Diversified107,000 Raytheon Co.* ******************* 0.2 4,276,79016,000 Dow Chemical Co.**************** 0.0 706,560195,400 Rockwell Collins, Inc. ************* 0.5 9,254,14419,000 E.I. du Pont de Nemours1.1 23,127,410

and Co. ********************** 0.0 816,240Aerospace and Defense – Equipment 8,000 PPG Industries, Inc. ************** 0.0 462,880

39,400 Goodrich Corp. ****************** 0.1 1,631,948 23,600 Rohm & Haas Co. **************** 0.2 1,148,14054,900 United Technologies Corp. ********* 0.1 3,094,713 0.2 3,133,820

0.2 4,726,661Chemicals – Specialty

Agricultural Chemicals 31,500 Ashland, Inc. ******************** 0.1 1,835,505238,900 Monsanto Co. ******************* 0.9 18,500,416 9,100 Eastman Chemical Co. ************ 0.0 473,928

41,000 Ecolab, Inc.********************** 0.1 1,499,780Agricultural Operations13,500 International Flavors &588,300 Archer-Daniels-Midland

Fragrances, Inc. **************** 0.0 456,165and Co.*********************** 0.7 14,801,6280.2 4,265,378Apparel Manufacturers

100,200 V.F. Corp. ********************** 0.3 5,569,116 Coatings and Paint100,200 Sherwin-Williams Co. ************* 0.2 4,589,160Appliances

13,100 Whirlpool Corp. ***************** 0.1 1,102,234 Commercial Banks – Central U.S.11,500 Marshall & Ilsley Corp. ************ 0.0 498,410Applications Software

169,200 Citrix Systems, Inc. *************** 0.2 4,861,116 Commercial Banks – Eastern U.S.122,600 Intuit, Inc. ********************** 0.3 6,535,806 72,100 M&T Bank Corp. **************** 0.4 7,912,975

12,200 Mercury Interactive Corp. ********** 0.0 339,038 Commercial Banks – Southern U.S.405,800 Microsoft Corp. ****************** 0.6 10,595,438 42,900 AmSouth BanCorporation* ********* 0.1 1,134,276380,400 Siebel Systems, Inc. *************** 0.2 4,020,828 8,800 BB&T Corp. ********************* 0.0 371,888

1.3 26,352,226 38,700 Regions Financial Corp. *********** 0.1 1,328,95862,300 Synovus Financial Corp. *********** 0.0 1,689,576Athletic Footwear

5,500 Nike, Inc. – Class B *************** 0.0 481,085 0.2 4,524,69896,000 Reebok International, Ltd. ********* 0.3 5,594,880 Commercial Banks – Western U.S.

0.3 6,075,965 11,300 Zions BanCorporation ************* 0.0 853,828Automotive and Truck Parts and Equipment – Commercial ServicesOriginal 13,388 Live Nation********************** 0.0 176,715

3,700 Johnson Controls, Inc. ************ 0.0 271,099Commercial Services – Finance

Beverages – Non-Alcoholic 204,100 Equifax, Inc. ******************** 0.4 7,825,194528,300 Coca-Cola Enterprises, Inc. ********* 0.5 10,175,058 7,000 H&R Block, Inc. ***************** 0.0 170,660120,100 Pepsi Bottling Group, Inc. ********** 0.2 3,454,076 138,500 Moody’s Corp. ******************* 0.4 8,546,835189,900 PepsiCo, Inc. ******************** 0.5 11,297,151 92,900 Paychex, Inc. ******************** 0.2 3,542,277268,100 The Coca-Cola Co. *************** 0.5 10,882,179 1.0 20,084,966

1.7 35,808,464Computer Aided Design

Beverages – Wine and Spirits 156,200 Autodesk, Inc. ******************* 0.3 6,705,666130,400 Brown-Forman Corp. – Class B ****** 0.4 9,092,792

ComputersBroadcast Services and Programming 234,300 Apple Computer, Inc. ************* 0.8 16,796,967

94,100 Clear Channel 22,400 Dell, Inc. *********************** 0.0 670,656Communications, Inc.* ********** 0.1 2,982,029 435,400 Hewlett-Packard Co. ************** 0.6 12,513,396

20,500 IBM Corp. ********************** 0.1 1,689,815Building – Residential and Commercial2,500 Centex Corp. ******************** 0.0 179,675 1.5 31,670,834

86,400 KB Home *********************** 0.3 6,311,520 Computers – Integrated Systems5,900 Lennar Corp. – Class A ************ 0.0 362,673 209,900 NCR Corp. ********************** 0.3 7,153,3923,700 Pulte Homes, Inc. **************** 0.0 147,704

0.3 7,001,572







Computers – Memory Devices 112,700 FPL Group, Inc.* ***************** 0.2% $ 4,701,84433,100 EMC Corp. ********************* 0.0% $ 454,132 372,800 PG&E Corp.********************* 0.8 13,894,256

99,400 PPL Corp. ********************** 0.1 2,938,264Consumer Products – Miscellaneous307,600 Public Service Enterprise251,100 Clorox Co. ********************** 0.7 14,395,563

Group, Inc. ******************* 1.1 20,040,14055,700 Fortune Brands, Inc. ************** 0.2 4,388,603166,200 Southern Co. ******************** 0.3 5,767,140

0.9 18,784,166 272,100 TECO Energy, Inc. *************** 0.2 4,658,352Containers – Metal and Glass 166,400 TXU Corp. ********************** 0.4 8,384,896

24,800 Ball Corp. ********************** 0.0 983,816 230,900 Xcel Energy, Inc.* **************** 0.2 4,280,886

Containers – Paper and Plastic 7.5 152,164,82411,100 Sealed Air Corp. ***************** 0.0 626,373 Electronic Components – Miscellaneous

Cosmetics and Toiletries 136,000 Jabil Circuit, Inc. ***************** 0.2 5,070,080203,400 Colgate-Palmolive Co. ************* 0.5 11,254,122 Electronic Components – Semiconductors609,837 Procter & Gamble Co. ************ 1.8 35,608,382 128,600 Broadcom Corp. – Class A ********** 0.3 6,051,916

2.3 46,862,504 27,400 Freescale Semiconductor, Inc. –Class B *********************** 0.0 693,768Data Processing and Management

146,400 Intel Corp. ********************** 0.2 3,643,896116,400 Automatic Data Processing, Inc. **** 0.2 5,403,288273,800 National Semiconductor Corp. ****** 0.3 7,170,82257,800 First Data Corp.* ***************** 0.1 2,491,180

50,100 Nvidia Corp. ******************** 0.1 1,832,157124,800 Fiserv, Inc. ********************** 0.3 5,393,8566,100 QLogic Corp. ******************** 0.0 198,3110.6 13,288,324

160,600 Texas Instruments, Inc. ************ 0.3 5,209,864Dental Supplies and Equipment 18,300 Xilinx, Inc. ********************** 0.0 460,428

16,100 Patterson Companies, Inc. ********* 0.0 536,613 1.2 25,261,162Disposable Medical Products Electronic Measuring Instruments

147,400 C.R. Bard, Inc. ******************* 0.5 9,784,412 105,100 Agilent Technologies, Inc. ********** 0.2 3,517,697Distribution and Wholesale Enterprise Software and Services

246,600 Genuine Parts Co. **************** 0.5 10,889,856 368,000 BMC Software, Inc. *************** 0.3 7,702,240Diversified Manufacturing Operations 422,600 Oracle Corp. ******************** 0.3 5,159,946

20,400 3M Co. ************************* 0.1 1,596,708 0.6 12,862,1861,600 Cooper Industries, Ltd. – Class A **** 0.0 117,296

Fiduciary Banks31,700 Danaher Corp. ******************* 0.1 1,774,88321,800 Northern Trust Corp. ************* 0.1 1,128,586672,000 General Electric Co.* ************** 1.1 23,647,68089,900 State Street Corp.* **************** 0.2 5,032,60266,200 ITT Industries, Inc.* ************** 0.3 6,850,376

0.3 6,161,18848,300 Textron, Inc. ******************** 0.2 3,747,11412,900 Tyco International, Ltd. ************ 0.0 372,810 Filtration and Separation Products

1.8 38,106,867 38,000 Pall Corp. *********************** 0.0 1,022,580

Drug Delivery Systems Finance – Consumer Loans227,000 Hospira, Inc. ******************** 0.5 9,781,430 234,700 SLM Corp. ********************** 0.6 12,892,071

E-Commerce and Products Finance – Investment Bankers and Brokers40,500 Amazon.com, Inc. **************** 0.1 1,909,170 3,500 Bear Stearns Companies, Inc. ******* 0.0 406,840

562,000 Charles Schwab Corp. ************* 0.4 8,216,440Electric – Integrated280,900 Citigroup, Inc. ******************* 0.7 13,646,12238,900 Allegheny Energy, Inc. ************ 0.1 1,230,407

86,700 Goldman Sachs Group, Inc. ******** 0.5 11,119,275137,800 Ameren Corp.******************** 0.3 7,099,456131,900 Lehman Brothers Holdings, Inc. **** 0.8 16,895,0716,100 American Electric Power

22,400 Merrill Lynch & Company, Inc. **** 0.1 1,522,080Co., Inc.* ********************* 0.0 227,40837,400 Morgan Stanley******************* 0.1 2,136,66211,600 Cinergy Corp. ******************* 0.0 494,392

2.6 53,942,490178,200 CMS Energy Corp. **************** 0.1 2,557,170150,200 Consolidated Edison, Inc.* ********* 0.3 6,996,316 Financial Guarantee Insurance

70,300 Constellation Energy 9,600 MGIC Investment Corp. *********** 0.0 634,176Group, Inc. ******************* 0.2 4,048,577

Food – Confectionery96,100 Dominion Resources, Inc.* ********* 0.4 7,435,257280,700 The Hershey Co.* **************** 0.8 15,556,394195,200 DTE Energy Co.* ***************** 0.4 8,459,968184,800 W.M. Wrigley Jr. Co. ************* 0.6 12,416,71223,500 Duke Energy Corp.* ************** 0.0 646,720

1.4 27,973,106442,200 Edison International*************** 1.0 19,403,736107,400 Entergy Corp. ******************* 0.4 7,400,934 Food – Meat Products236,700 Exelon Corp. ******************** 0.6 12,627,945 109,400 Tyson Foods, Inc. – Class A ********* 0.1 1,888,244180,300 FirstEnergy Corp. **************** 0.4 8,870,760






Food – Miscellaneous and Diversified Life and Health Insurance137,000 Campbell Soup Co.* ************** 0.2% $ 4,118,220 146,800 AFLAC, Inc. ********************* 0.3% $ 6,867,304

17,600 ConAgra Foods, Inc. ************** 0.0 356,400 126,700 CIGNA Corp. ******************* 0.7 14,398,188134,400 General Mills, Inc. **************** 0.3 6,699,840 29,600 Jefferson-Pilot Corp.*************** 0.1 1,690,456134,400 Kellogg Co. ********************* 0.3 5,847,744 34,700 Principal Financial Group, Inc. ****** 0.1 1,656,578

12,300 McCormick & Co, Inc. – Non 161,000 Prudential Financial, Inc. ********** 0.6 11,875,360Voting Shares* ***************** 0.0 378,225 15,400 Torchmark Corp.* **************** 0.0 853,314

65,200 Sara Lee Corp. ******************* 0.1 1,238,148 48,200 UnumProvident Corp. ************* 0.1 1,096,068

0.9 18,638,577 1.9 38,437,268

Food – Retail Machinery – Construction and Mining36,900 Kroger Co. ********************** 0.0 697,410 21,600 Caterpillar, Inc. ****************** 0.1 1,255,176

289,700 Safeway, Inc.********************* 0.4 6,903,551 Medical – Biomedical and Genetic0.4 7,600,961 95,200 Amgen, Inc. ********************* 0.3 7,494,144

93,500 Chiron Corp. ******************** 0.2 4,155,140Food – Wholesale and Distribution58,200 Genzyme Corp. ****************** 0.2 4,113,576399,000 Sysco Corp. ********************* 0.6 12,500,67093,700 MedImmune, Inc. **************** 0.2 3,277,626

Gas – Distribution 78,900 Millipore Corp. ****************** 0.3 5,206,6117,900 Nicor, Inc.* ********************* 0.0 310,944

1.2 24,247,09731,200 NiSource, Inc. ******************* 0.0 649,896121,000 Sempra Energy ******************* 0.3 5,415,960 Medical – Drugs

285,900 Abbott Laboratories *************** 0.6 11,375,9610.3 6,376,80085,400 Allergan, Inc. ******************** 0.4 9,274,440

Health Care Cost Containment 458,100 Bristol-Myers Squibb Co.*********** 0.5 10,591,272204,400 McKesson Corp. ***************** 0.5 10,692,164 166,000 Eli Lilly & Co. ******************* 0.5 9,531,720

Home Decoration Products 324,100 Forest Laboratories, Inc. *********** 0.6 13,317,269267,900 Newell Rubbermaid, Inc. ********** 0.3 6,418,884 374,700 King Pharmaceuticals, Inc. ********* 0.3 6,351,165

596,600 Merck & Company, Inc. *********** 1.0 19,276,146Hotels and Motels480,900 Pfizer, Inc. ********************** 0.5 11,277,10552,700 Hilton Hotels Corp.* ************** 0.1 1,264,273552,200 Schering-Plough Corp. ************ 0.6 11,651,42036,300 Marriott International, Inc. –210,700 Wyeth ************************** 0.5 9,776,480Class A *********************** 0.1 2,458,599

119,300 Starwood Hotels & Resorts 5.5 112,422,978Worldwide, Inc.* *************** 0.4 7,663,832 Medical – Generic Drugs

0.6 11,386,704 310,400 Mylan Laboratories, Inc.* ********** 0.3 6,239,040189,700 Watson Pharmaceuticals, Inc. ******* 0.3 6,188,014Human Resources

25,000 Robert Half International, Inc. ****** 0.0 951,750 0.6 12,427,054

Industrial Automation and Robotics Medical – HMO62,400 Rockwell Automation, Inc. ********* 0.2 3,730,272 178,600 Aetna, Inc. ********************** 0.9 17,097,378

86,700 Coventry Health Care, Inc. ********* 0.2 4,926,294Industrial Gases150,100 Humana, Inc. ******************** 0.4 8,258,50216,500 Air Products & Chemicals, Inc.* **** 0.0 982,740229,700 UnitedHealth Group, Inc. ********** 0.7 14,457,318

Instruments – Controls 189,800 WellPoint, Inc. ******************* 0.8 15,193,4909,600 Thermo Electron Corp. ************ 0.0 294,624

3.0 59,932,982Instruments – Scientific

Medical – Hospitals56,600 Applera Corp. – Applied481,400 HCA, Inc. ********************** 1.2 24,464,748Biosystems Group*************** 0.1 1,514,616399,800 Health Management5,300 Fisher Scientific

Associates, Inc. – Class A ********* 0.4 8,827,584International, Inc. ************** 0.0 326,53334,600 Tenet Healthcare Corp. ************ 0.0 266,074

0.1 1,841,1491.6 33,558,406

Insurance BrokersMedical – Nursing Homes309,000 AON Corp. ********************* 0.5 11,244,510

106,100 Manor Care, Inc. ***************** 0.2 4,244,000119,000 Marsh & McLennanMedical – Wholesale Drug DistributorsCompanies, Inc. *************** 0.2 3,792,530

163,400 AmerisourceBergen Corp. ********** 0.3 6,782,7340.7 15,037,040275,200 Cardinal Health, Inc.* ************* 0.9 18,994,304

Investment Management and Advisory Services1.2 25,777,03898,100 Federated Investors, Inc. –

Medical Information SystemsClass B *********************** 0.2 3,631,66241,800 IMS Health, Inc. ***************** 0.1 1,042,910251,900 Franklin Resources, Inc.************ 1.1 23,799,512

4,400 T. Rowe Price Group, Inc.* ********* 0.0 316,272

1.3 27,747,446







Medical Instruments Oil Companies – Exploration and Production290,900 Guidant Corp. ******************* 0.9% $ 18,893,955 52,000 Anadarko Petroleum Corp. ********* 0.2% $ 4,869,800201,200 Medtronic, Inc. ****************** 0.6 11,637,408 19,900 Apache Corp. ******************** 0.1 1,355,787213,800 St. Jude Medical, Inc. ************* 0.5 10,850,350 179,300 Burlington Resources, Inc. ********* 0.7 15,389,319

86,700 Devon Energy Corp. ************** 0.3 5,410,0802.0 41,381,713198,300 EOG Resources, Inc. ************** 0.7 14,543,322

Medical Labs and Testing Services 178,537 Kerr-McGee Corp. **************** 0.9 16,079,04222,000 Laboratory Corporation of 2,600 Murphy Oil Corp. **************** 0.0 139,412

America Holdings*************** 0.1 1,185,800 77,700 XTO Energy, Inc.* **************** 0.2 3,413,361166,300 Quest Diagnostics, Inc. ************ 0.4 8,611,014

3.1 61,200,1230.5 9,796,814

Oil Companies – IntegratedMedical Products 8,000 Amerada Hess Corp. ************** 0.0 1,005,440

260,300 Baxter International, Inc. ********** 0.5 9,808,104 126,562 Chevron Corp. ******************* 0.3 7,148,222186,600 Becton, Dickinson and Co. ********* 0.6 11,255,712 349,600 ConocoPhillips ******************* 1.1 20,185,904513,800 Johnson & Johnson *************** 1.6 30,961,588 523,900 Exxon Mobil Corp. *************** 1.5 29,464,136151,600 Stryker Corp.* ******************* 0.3 6,808,356 138,338 Marathon Oil Corp. *************** 0.4 8,405,417

71,100 Zimmer Holdings, Inc. ************ 0.2 4,836,933 162,600 Occidental Petroleum Corp. ******** 0.6 12,980,3583.2 63,670,693 3.9 79,189,477

Multi – Line Insurance Oil Field Machinery and Equipment113,600 ACE, Ltd. *********************** 0.3 6,123,040 112,600 National Oilwell Varco, Inc. ******** 0.3 7,029,618203,900 Allstate Corp. ******************** 0.5 11,073,809

Oil Refining and Marketing3,300 American International185,600 Sunoco, Inc. ******************** 0.7 14,519,488Group, Inc. ******************* 0.0 227,799439,400 Valero Energy Corp. ************** 1.1 22,651,07072,400 Genworth Financial, Inc. ********** 0.1 2,514,452

40,700 Hartford Financial Services 1.8 37,170,558Group, Inc. ******************* 0.2 3,517,701 Optical Supplies

234,600 Loews Corp. ******************** 1.1 22,317,498 64,400 Bausch & Lomb, Inc. ************* 0.2 4,325,748193,200 MetLife, Inc. ******************** 0.5 9,470,664

Paper and Related Products3,300 XL Capital, Ltd. – Class A ********** 0.0 222,02451,900 Temple-Inland, Inc. *************** 0.1 2,323,044

2.7 55,466,987Pharmacy Services

Multimedia 119,300 Caremark Rx, Inc. **************** 0.3 6,197,63526,000 E.W. Scripps Co. – Class A ********* 0.1 1,248,520 160,900 Express Scripts, Inc. – Class A******* 0.7 13,481,81168,000 McGraw-Hill Companies, Inc. ****** 0.2 3,567,960 526,522 Medco Health Solutions, Inc. ******* 1.4 29,890,654

266,200 News Corp. ********************* 0.2 4,171,3542.4 49,570,10012,500 Walt Disney Co. ***************** 0.0 302,125

Photography Equipment and Supplies0.5 9,289,95917,200 Eastman Kodak Co. *************** 0.0 404,372

Networking ProductsPipelines39,900 Cisco Systems, Inc. *************** 0.0 681,492

152,200 Kinder Morgan, Inc. ************** 0.7 13,961,306Office Supplies and Forms

Power Conversion and Supply Equipment7,300 Avery Dennison Corp. ************* 0.0 409,603257,200 American Power Conversion

Oil – Field Services Corp. ************************ 0.3 5,645,540150,800 BJ Services Co.* ****************** 0.3 5,529,836

Printing – Commercial92,100 Baker Hughes, Inc. *************** 0.3 5,582,18118,700 R.R. Donnelley & Sons Co. ******** 0.0 646,833137,300 Halliburton Co.* ***************** 0.4 8,430,220

41,300 Schlumberger, Ltd. *************** 0.2 3,999,492 Property and Casualty Insurance15,000 Weatherford International, Ltd. **** 0.0 535,800 41,000 Chubb Corp.* ******************* 0.2 4,021,690

124,200 Progressive Corp. **************** 0.7 14,725,1521.2 24,077,529191,800 SAFECO Corp. ****************** 0.5 10,825,192Oil and Gas Drilling362,400 St. Paul Travelers45,100 Nabors Industries, Ltd. ************ 0.2 3,399,638

Companies, Inc. *************** 0.8 16,224,64826,700 Noble Corp. ********************* 0.1 1,873,0052.2 45,796,682153,800 Transocean, Inc. ***************** 0.5 10,689,100

Publishing – Newspapers0.8 15,961,7433,500 Gannett Company, Inc. ************ 0.0 213,605

36,100 Knight-Ridder, Inc. *************** 0.1 2,291,267

0.1 2,504,872

Real Estate Investment Trusts – Apartments121,700 Archstone-Smith Trust* ************ 0.3 5,128,438

23,500 Equity Residential***************** 0.0 923,550

0.3 6,051,988






Real Estate Investment Trusts – Office Property Schools215,200 Equity Office Properties Trust* ****** 0.3% $ 6,572,208 12,500 Apollo Group, Inc. – Class A ******** 0.0% $ 755,875

Real Estate Investment Trusts – Regional Malls Semiconductor Components – Integrated121,000 Simon Property Group, Inc. ******** 0.5 9,307,320 Circuits

27,000 Linear Technology Corp. *********** 0.1 972,540Real Estate Investment Trusts – Storage3,200 Maxim Integrated Products, Inc. **** 0.0 115,93632,400 Public Storage, Inc. *************** 0.1 2,216,160

0.1 1,088,476Real Estate Investment Trusts – Warehouse andSuper – Regional Banks – U.S.Industry

413,016 Bank of America Corp. ************ 1.0 19,077,20941,000 ProLogis ************************ 0.1 1,923,31024,800 KeyCorp* *********************** 0.0 820,880Retail – Apparel and Shoe15,000 PNC Financial Services Group******* 0.0 933,750271,400 Nordstrom, Inc. ****************** 0.5 10,150,360

124,300 SunTrust Banks, Inc. ************** 0.5 9,097,517Retail – Auto Parts 24,600 U.S. BanCorp* ******************* 0.0 741,690

27,200 AutoZone, Inc. ******************* 0.1 2,513,824 107,028 Wachovia Corp. ****************** 0.3 5,664,99243,300 Wells Fargo & Co. **************** 0.1 2,730,931Retail – Automobile

65,100 AutoNation, Inc. ***************** 0.1 1,428,294 1.9 39,066,969

Retail – Building Products Telecommunication Equipment900 Lowe’s Companies, Inc. *********** 0.0 60,390 121,500 ADC Telecomm, Inc. ************** 0.1 2,711,880

Retail – Consumer Electronics Telecommunication Equipment – Fiber Optics20,000 Circuit City Stores, Inc. ************ 0.0 461,600 361,900 Corning, Inc. ******************** 0.3 7,201,810

Retail – Discount Telephone – Integrated72,900 Costco Wholesale Corp.************ 0.2 3,601,989 96,300 ALLTEL Corp.* ****************** 0.3 6,088,08633,800 Target Corp. ********************* 0.1 1,866,774 754,249 AT&T, Inc.* ********************* 0.8 18,569,61059,900 TJX Companies, Inc. ************** 0.1 1,387,883 38,400 BellSouth Corp. ****************** 0.1 1,048,32014,000 Wal-Mart Stores, Inc. ************* 0.0 664,720 447,000 Citizens Communications Co.* ****** 0.3 5,462,340

247,744 Sprint Nextel Corp. *************** 0.3 5,854,1910.4 7,521,366244,900 Verizon Communications, Inc. ****** 0.4 7,403,327Retail – Drug Store

2.2 44,425,874299,600 CVS Corp. ********************** 0.4 7,957,376232,400 Walgreen Co. ******************** 0.5 10,241,868 Television

11,300 Viacom, Inc. – Class B ************* 0.0 365,4420.9 18,199,244

TherapeuticsRetail – Jewelry71,200 Gilead Sciences, Inc. ************** 0.2 3,742,27249,400 Tiffany & Co. ******************* 0.1 1,905,358

TobaccoRetail – Major Department Stores278,500 Altria Group, Inc.***************** 1.0 20,926,490218,500 J.C. Penney Company, Inc.

89,600 Reynolds American, Inc. *********** 0.4 8,512,896(Holding Company) (Retail) ****** 0.6 12,118,010138,300 UST, Inc. *********************** 0.3 5,646,78921,567 Sears Holdings Corp. ************* 0.1 2,497,459

1.7 35,086,1750.7 14,615,469

Tools – Hand HeldRetail – Office Supplies99,900 Snap-on, Inc. ******************** 0.2 3,766,230430,700 Office Depot, Inc. **************** 0.7 13,498,138

ToysRetail – Regional Department Stores92,200 Mattel, Inc. ********************* 0.1 1,466,902156,294 Federated Department

Stores, Inc. ******************** 0.5 10,388,862 Transportation – Railway40,500 Kohl’s Corp. ******************** 0.1 1,977,615 240,100 Burlington Northern Santa Fe

0.6 12,366,477 Corp. ************************ 0.8 17,049,50197,900 CSX Corp. ********************** 0.2 5,000,732Retail – Restaurants40,800 Norfolk Southern Corp. *********** 0.1 1,835,184218,400 Darden Restaurants, Inc. *********** 0.4 8,548,176

122,600 Union Pacific Corp. *************** 0.5 9,930,600200,300 Starbucks Corp. ****************** 0.3 6,002,9911.6 33,816,017119,000 Wendy’s International, Inc. ********* 0.3 6,621,160

158,200 Yum! Brands, Inc. **************** 0.4 7,522,410 Transportation – Services1.4 28,694,737 2,600 FedEx Corp. ******************** 0.0 269,880

Savings and Loans and Thrifts – Western U.S. Web Portals and Internet Service Providers113,700 Golden West Financial Corp. ******* 0.4 7,559,913 21,500 Yahoo!, Inc. ********************* 0.0 841,940





Percentage Futures Contracts, Sold at 31 December 2005of Net Fair

UnrealisedShares or Principal Amount Assets ValueFutures Appreciation/

Wireless Equipment Sold Expiration Date (Depreciation)29,500 Motorola, Inc. ******************* 0.0% $ 672,305

567 S&P 500 EMINI Future March 2006 $(400,489)156,400 QUALCOMM, Inc. *************** 0.4 6,725,200

0.4 7,397,505

Total Common Stock (Cost $1,869,686,609) ******** 98.2 2,025,058,769 Forward Currency Contracts, Open at 31 December 2005

Repurchase Agreement 1.8 Currency Unrealised$37,200,000 Lehman Brothers Holding, Inc. Currency Currency Market Settle Appreciation/

4.26%, dated 30/12/05 Purchased Sold Value $U.S. Date (Depreciation)maturing 3/1/06, to berepurchased at $37,201,314 Credit Suisse First Bostoncollateralised by $69,605,000 EURO 239,124,915 USD 291,103,000 $283,746,925 16-Feb-06 $(7,356,075)in Fannie Mae 0.00% USD 68,897,000 EURO 57,259,453 67,944,379 16-Feb-06 952,621due 1/9/33, with a value of

Total $(6,403,454)$37,945,339(Cost $37,200,000) ************* 1.8 37,200,000

Total Repurchase Agreement (Cost $37,200,000) ****** 1.8 37,200,000

U.S. Government Obligations 0.2

U.S. Treasury Bill4,000,000 U.S. Treasury Bill

0.00%, due 23/3/06 ************* 0.2 3,965,456

Total U.S. Government Obligations(Cost $3,964,810)***************************** 0.2 3,965,456

Total Investments (Cost $1,910,851,419) ********** 100.2 2,066,224,225

Liabilities in excess of other assets ******************(0.2) (3,132,829)

Net Assets attributable to holders of redeemableordinary shares ***************************** 100.0 $2,063,091,396




US REIT Fund


Percentage Percentageof Net of Net

Shares or Principal Amount Assets Fair Value Shares or Principal Amount Assets Fair Value

Common Stock 65.4% 159,380 Kimco Realty Corp.* ****************1.5% $ 5,155,943Casino Hotels 93,545 Pan Pacific Retail Properties, Inc. *****1.9 6,220,743

15,000 Kerzner International, Ltd. ***********0.3 $ 1,027,650 90,434 Regency Centers Corp. **************1.6 5,268,68591,260 Weingarten Realty Investors***********1.0 3,483,394Finance – Mortgage Loan and Banker

11.1 37,161,35415,000 Thornburg Mortgage, Inc.* ***********0.1 395,850

Real Estate Investment Trusts – StorageForestry151,615 Extra Space Storage, Inc. *************0.7 2,287,870184,095 Plum Creek Timber Co., Inc. *********2.0 6,708,422

42,424 Sovran Self Storage, Inc.* ************0.6 1,997,322Hotels and Motels100,000 U-Store-It Trust ********************0.6 2,094,00096,385 Starwood Hotels & Resorts

1.9 6,379,192Worldwide, Inc.* *****************1.9 6,191,772Real Estate Investment Trusts – Warehouse andReal Estate – Operations and DevelopmentIndustrial49,435 The St. Joe Co. ********************1.0 3,365,535

177,731 AMB Property Corp. ****************2.6 8,676,827Real Estate Investment Trusts – Apartments 281,780 First Potomac Realty Trust ************2.2 7,422,085

240,705 Archstone-Smith Trust ***************3.1 10,143,308 237,165 ProLogis **************************3.4 11,125,411109,000 AvalonBay Communities, Inc.* ********2.9 9,743,510

8.2 27,224,323130,050 BNP Residential Properties, Inc. *******0.6 2,056,091155,670 United Dominion Realty Transportation – Marine

Trust, Inc. **********************1.1 3,658,245 70,005 Alexander & Baldwin, Inc. ***********1.1 3,796,371

7.7 25,601,154 Total Common Stock (Cost $180,469,730) ************65.4 218,365,250Real Estate Investment Trusts – Diversified

Preferred Stock 33.99,000 Capital Lease Funding, Inc. **********0.0 96,480Real Estate Investment Trusts – Apartments132,395 Digital Realty Trust, Inc.* ************0.9 3,053,029

150,000 Apartment Investment &94,620 Vornado Realty Trust ****************2.4 7,967,004Management Co.3.3 11,116,513Series Y, 7.875% *****************1.1 3,727,500

Real Estate Investment Trusts – Health Care 193,680 Series T, 8.00% ******************1.4 4,841,999290,404 Nationwide Health Properties, Inc. *****1.9 6,316,287 114,000 Associated Estates Realty Corp. ********0.9 2,850,000125,130 Windrose Medical Properties Trust *****0.5 1,780,600 38,920 Equity Residential

2.4 8,096,887 Series N, 6.48% ******************0.3 935,63711,335 Post Properties, Inc.Real Estate Investment Trusts – Mortgage

Series A, 8.50% ******************0.2 644,395185,385 Gramercy Capital Corp.* *************1.3 4,254,58629,245 United Dominion Realty Trust, Inc.55,000 JER Investors Trust, Inc.**************0.3 931,150

Series B, 8.60% ******************0.2 751,012100,000 KKR Financial Corp. ****************0.7 2,396,0004.1 13,750,5432.3 7,581,736

Real Estate Investment Trusts – DiversifiedReal Estate Investment Trusts – Office Property23,500 Capital Lease Funding Inc.126,695 Alexandria Real Estate Equities* *******3.0 10,198,947

Series A, 8.125% *****************0.2 575,750247,220 American Financial Realty Trust* *****0.9 2,912,25291,450 Colonial Properties Trust124,070 BioMed Realty Trust, Inc.*************0.9 3,032,271

Series D, 8.125% *****************0.7 2,345,693122,100 Boston Properties, Inc.* **************2.7 8,971,90725,000 Cousins Properties, Inc.127,950 Equity Office Properties Trust *********1.2 3,907,593

Series B, 7.50% ******************0.2 630,00095,611 Kilroy Realty Corp.******************1.8 5,996,721130,130 Crescent Real Estate Equities Co.129,859 Maguire Properties, Inc.**************1.2 3,998,359

Series A, 6.75% ******************0.8 2,771,76962,265 SL Green Realty Corp.* **************1.4 4,697,27250,000 Digital Realty Trust, Inc.

13.1 43,715,322 Series A, 8.50% ******************0.4 1,262,500Real Estate Investment Trusts – Outlet Centers 40,000 Series B, 7.875% *****************0.3 974,000

212,445 Trustreet Properties, Inc.* ************0.9 3,093,199 61,905 Lexington CorporateProperties TrustReal Estate Investment Trusts – Regional MallsSeries B, 8.05% ******************0.5 1,567,435118,000 Feldman Mall Properties, Inc.* ********0.4 1,393,580

57,900 PS Business Parks, Inc.25,000 General Growth Properties, Inc. *******0.4 1,180,750Series I, 6.875% ******************0.4 1,346,175143,405 Simon Property Group, Inc. **********3.4 11,030,713

108,000 Series K, 7.95% ******************0.7 2,786,399141,025 The Macerich Co. ******************2.8 9,505,08540,000 Vornado Realty Trust90,710 The Mills Corp. ********************1.1 3,799,842

Series H, 6.75%* *****************0.3 948,0008.1 26,909,970100,000 Series I, 6.625% ******************0.7 2,320,000

Real Estate Investment Trusts – 5.2 17,527,721Shopping Centers

391,670 Acadia Realty Trust******************2.3 7,817,733151,610 Federal Realty Investments Trust* *****2.8 9,214,856



US REIT Fund


Percentage Percentageof Net of Net

Shares or Principal Amount Assets Fair Value Shares or Principal Amount Assets Fair Value

Real Estate Investment Trusts – Health Care Real Estate Investment Trusts –198,885 Health Care Property Shopping Centers

Investors, Inc. 67,060 Developers DiversifiedSeries F, 7.10% ******************1.5% $ 4,952,237 Realty Corp.

189,465 LTC Properties, Inc. Series G, 8.00%* *****************0.5% $ 1,723,442Series F, 8.00%* *****************1.4 4,736,625 146,625 Series H, 7.375% *****************1.1 3,634,834

32,100 Regency Centers Corp.2.9 9,688,862Series C, 7.45% ******************0.2 815,661

Real Estate Investment Trusts – Hotels 40,000 Tanger Factory Outlet Centers171,875 FelCor Lodging Trust, Inc. Series C, 7.50% ******************0.3 980,000

Series A, 1.95% ******************1.2 4,045,9382.1 7,153,93761,315 Host Marriott Corp.

Series C, 10.00%* ****************0.5 1,545,138 Real Estate Investment Trusts – Storage100,000 Series E, 8.875%* ****************0.8 2,666,000 74,500 Public Storage, Inc.127,750 Innkeepers USA Trust Series E, 6.75% ******************0.5 1,826,740

Series C, 8.00%* *****************0.9 3,111,990 Real Estate Investment Trusts – Warehouse and40,000 LaSalle Hotel Properties Industry

Series A, 10.25% *****************0.3 1,040,000 125,870 AMB Property Corp.80,000 Series, 7.50%* *******************0.6 1,848,000 Series L, 6.50%*******************0.9 3,039,760

4.3 14,257,066 63,280 ProLogisSeries F, 6.75% ******************0.5 1,566,813Real Estate Investment Trusts – Manufactured

Homes 1.4 4,606,573184,900 Affordable Residential

Total Preferred Stock (Cost $117,048,711) ************33.9 113,124,248CommunitiesSeries A, 8.25% ******************1.1 3,587,060

Repurchase Agreement 0.1Real Estate Investment Trusts – Office Property $ 400,000 Lehman Brothers Holding, Inc.

108,000 Alexandria Real Estate 4.26%, dated 30/12/05Equities, Inc. maturing 3/1/06, to beSeries C, 8.375% *****************0.8 2,770,200 repurchased at $400,011

96,195 Brandywine Realty Trust collateralised by $8,015,000 inSeries C, 7.50% ******************0.7 2,443,353 Fannie Mae 0.00% due 1/6/31,

14,500 Corporate Office Properties Trust with a value of $408,011Series F, 9.875%* ****************0.1 368,010 (Cost $400,000)******************0.1 400,000

75,825 Series G, 8.00%* *****************0.6 1,903,966103,100 Series H, 7.50%* *****************0.8 2,603,275 Total Repurchase Agreement (Cost $400,000)***********0.1 400,000

54,597 Highwoods Properties, Inc.Total Investments (Cost $297,918,441)***************99.4 331,889,498Series B, 8.00% ******************0.4 1,370,385

137,000 Kilroy Realty Corp. Cash, Receivables and Other assets in excessSeries E*************************1.0 3,497,610 of liabilities ************************************0.6 2,138,464

200,850 Maguire Properties, Inc.Series A, 7.625%* ****************1.5 4,920,824 Net Assets attributable to holders of redeemable

253,570 SL Green Realty Corp. ordinary shares *******************************100.0 $334,027,962Series C, 7.625%* ****************2.0 6,351,928

100,000 Series D, 7.875%* ****************0.8 2,510,000* All or part of these securities were out on loan as at 31 December 2005. See note 7.8.7 28,739,551

Real Estate Investment Trusts – Outlet Centers188,475 Trustreet Properties, Inc. Forward Currency Contracts, Open at 31 December 2005

Series A, 7.72% ******************1.2 3,974,938Currency Unrealised

Real Estate Investment Trusts – Regional Malls Currency Currency Market Settle Appreciation/55,215 CBL and Associates Properties, Inc. Purchased Sold Value $U.S. Date (Depreciation)

Series C, 7.75% ******************0.4 1,389,20999,150 Glimcher Realty Trust

Credit Suisse First BostonSeries G, 8.125%* ****************0.8 2,478,750EURO 13,471,458 USD 16,640,000 $15,985,305 16-Feb-06 $(654,695)39,255 The Mills Corp.USD 2,657,000 EURO 2,204,858 2,616,296 16-Feb-06 40,704Series C, 9.00% ******************0.3 1,006,106

94,050 Series E, 8.75% ******************0.7 2,391,692 Total $(613,991)30,000 Series G, 7.875% *****************0.2 745,500

2.4 8,011,257



US Flexible Income Fund




Corporate Bonds 27.5% Containers – Metal and GlassAerospace and Defense 2,675,000 Owens Brockway Glass Container

2,775,000 Northrop Grumman Corp., 4.08% Inc., 8.875%, companynotes, due 16/11/06 ***************0.3 $ 2,754,143 guaranteed notes, due 15/2/09 *****0.3% $ 2,805,406

1,750,000 Owens-Illinois, Inc., 7.35%, seniorAgricultural Operationsnotes, due 15/5/08 ****************0.2 1,780,6251,482,000 Bunge Limited Finance Corp.

0.5 4,586,0314.375%, company guaranteednotes, due 15/12/08 ***************0.2 1,457,421 Cosmetics and Toiletries

5,050,000 Gillette Co., 4.125%, seniorBrewerynotes, due 30/8/07 ****************0.5 4,995,1272,180,000 FBG Finance, Ltd., 5.125%

3,450,000 Procter & Gamble Co., 4.75%notes, due 15/6/15 ****************0.2 2,124,866notes, due 15/6/07 ****************0.4 3,454,478Broadcast Services and Programming

0.9 8,449,6051,058,000 Xm Satellite Radio, Inc., 12.00%secured notes, due 15/6/10 *********0.1 1,192,895 Diversified Financial Services

General Electric Capital Corp.:Cable Television3,000,000 3.75%, notes, due 15/12/09 ********0.3 2,880,8584,250,000 Cox Communications, Inc.2,850,000 4.375%, notes, due 21/11/11 *******0.3 2,770,5084.625%, notes, due 15/1/10 ********0.5 4,117,9441,650,000 General Electric Corp., Series A1,420,000 Telenet Communications N.V.

4.125%, due 1/9/09 ***************0.2 1,607,5799.00%, senior notes3,500,000 ZFS Finance USA Trust II, 6.45%due 15/12/13 ********************0.2 1,869,947

due 15/12/65 ********************0.5 3,555,3480.7 5,987,8911.3 10,814,293

Cellular TelecommunicationsDrug Delivery SystemsNextel Communications, Inc.:

1,850,000 Fresenius Finance B.V., 7.75%1,400,000 Series D, 7.375%, due 1/8/15 *******0.2 1,478,599company guaranteed notes2,235,000 Series E, 6.875%, senior notesdue 30/4/09 *********************0.3 2,304,808due 31/10/13 ********************0.3 2,333,528

2,375,000 Rogers Wireless, Inc., 7.62% Electric – Generationsecured notes, due 15/12/10 ********0.2 2,464,062 1,865,000 Allegheny Energy Supply, 8.25%

unsecured notes, due 15/4/12 *******0.2 2,112,1130.7 6,276,189

Electric – IntegratedChemicals – SpecialtyCMS Energy Corp.:545,000 Lubrizol Corp., 6.50%, debentures

1,290,000 7.50%, senior notes due 15/1/09*****0.1 1,335,150due 1/10/34 *********************0.1 570,889630,000 6.875%, senior unsecured notesCommercial Banks – Eastern U.S.

due 15/12/15 ********************0.1 638,6631,450,000 Sovereign Bank, 4.00%, deposit2,925,000 Dominion Resources, Inc. 5.125%notes, due 1/2/08 *****************0.2 1,422,227

senior notes due 15/12/09 **********0.3 2,919,027Commercial Banks – Non U.S. 2,145,000 Midamerican Energy Holdings Co.

2,150,000 Skandinaviska Enskilda Banken 3.50%, senior notes due 15/5/08*****0.2 2,070,755A.B., 5.47%, subordinated 4,500,000 Monongahela Power Co., 6.70%notes, due 29/3/49 ****************0.2 2,131,710 first mortgage, due 15/6/14 *********0.6 4,933,556

1,000,000 Northern States Power Co.Commercial Banks – Western U.S.2.875%, first mortgage2,555,000 Zions BanCorporation, 5.50%due 1/8/06 **********************0.1 989,765notes, due 16/11/15 ***************0.3 2,578,728

2,100,000 Pacific Gas & Electric Co., 4.80%Computer Servicesunsecured notes, due 1/3/14 ********0.2 2,049,915Sungard Data Systems, Inc.:

Southern California Edison Co.:1,425,000 9.125%, senior unsecured notes4,000,000 7.625%, notes, due 15/1/10 ********0.6 4,363,636Series 144A, due 15/8/13***********0.2 1,482,0002,700,000 6.00%, first mortgage1,694,000 10.25%, senior unsecured notes

due 15/1/34 *********************0.3 2,867,270due, Series 144A, due 15/8/15 *****0.2 1,702,4703,800,000 Southwestern Public Service Co.:

0.4 3,184,470 5.125%, senior notesComputers due 1/11/06 *********************0.4 3,803,960

3,035,000 IBM Corp., 2.375% TuxCorp.notes, due 1/11/06 ****************0.3 2,977,050 5,000,000 6.375%, senior notes

due 15/6/06 *********************0.7 5,050,469Computers – Peripheral Equipment1,230,000 6.55%, senior notes500,000 Candescent Technologies Corp.

due 15/11/34 ********************0.1 1,168,3750.00%, senior subordinated3.7 32,190,541debentures, due 29/6/06 ***********0.0 0

Consumer Products – Miscellaneous1,680,000 Fortune Brands, Inc., 4.875%

notes, due 1/12/13 ****************0.2 1,634,013







Electronic Components – Semiconductors Leisure, Recreation and Gaming1,145,000 Advanced Micro Devices, Inc. 1,625,000 Hard Rock Hotel, Inc., 8.875%

7.75%, senior notes notes, due 1/6/13 *****************0.2% $ 1,759,063due 1/11/12 *********************0.1% $ 1,162,175 Life and Health Insurance

Finance – Auto Loans 4,400,000 Americo Life, Inc., 7.875%, notes2,205,000 General Motors Acceptance Corp. due 1/5/13 **********************0.5 4,576,000

6.125%, notes, due 28/8/07 ********0.2 2,044,756 3,500,000 StanCorp Financial Group, Inc.6.875%, senior notesFinance – Commercialdue 1/10/12 *********************0.4 3,769,8364,075,000 CIT Group, Inc., 3.65%, senior

0.9 8,345,836notes, due 23/11/07 ***************0.4 3,985,326Medical – Biomedical and GeneticFinance – Consumer Loans

1,730,000 Genentech, Inc., 4.75%, senior3,375,000 Household Finance Corp., 4.625%notes, due 15/7/15 ****************0.2 1,686,636notes, due 15/1/08 ****************0.4 3,354,352

2,775,000 John Deere Capital Corp., 3.625% Medical – HMOnotes, due 25/5/07 ****************0.3 2,727,828 Coventry Health Care, Inc.:

1,800,000 SLM Corp., 6.81% 1,615,000 5.875%, senior notesnotes, due 31/1/14 ****************0.2 1,776,060 due 15/1/12 *********************0.2 1,639,225

2,235,000 6.125%, senior notes0.9 7,858,240due 15/1/15 *********************0.3 2,302,050

Finance – Investment Bankers and Brokers 1,000,000 WellPoint Health Networks, Inc.810,000 E*Trade Financial Corp., 8.00% 6.375%, notes, due 15/6/06 ********0.1 1,006,739

senior notes 15/6/11 **************0.1 846,450 4,000,000 UnitedHealth Group, Inc., 3.30%2,065,000 Goldman Sachs Group, Inc. senior notes, due 30/1/08 **********0.4 3,878,960

5.125%, notes 15/1/15*************0.2 2,045,2961.0 8,826,9741,665,000 Jefferies Group, Inc., 5.50%, senior

notes, due 15/3/16 ****************0.2 1,647,859 Medical Labs and Testing Services1,275,000 E*TRADE Financial Corp 7.375% 1,280,000 Quest Diagnostics, Inc., 5.125%

Series 144A due 15/9/13 ***********0.1 1,297,313 company guaranteednotes, due 1/11/10 ****************0.1 1,280,9880.6 5,836,918

Motorcycle and Motor ScooterFood – Miscellaneous and Diversified2,890,000 Harley-Davidson, Funding,3,035,000 General Mills, Inc., 3.875%, notes

3.625% notes, due 15/12/08 ********0.3 2,797,549due 30/11/07 ********************0.3 2,976,8684,540,000 Kellogg Co., 2.875%, senior notes Multimedia

due 1/6/08 **********************0.5 4,330,025 4,100,000 Time Warner, Inc., 6.125%company guaranteed notes0.8 7,306,893due 15/4/06 *********************0.5 4,112,616Gas – Distribution

Mutual Insurance1,135,000 Colorado Interstate Gas Co.2,025,000 North Front Pass-Through Trust6.80%, senior notes

5.81%, notes, due 15/12/24 ********0.2 2,030,376due 15/11/15 ********************0.1 1,165,3903,500,000 Southwest Gas Corp., 7.625% Non-Hazardous Waste Disposal

senior notes, due 15/5/12 **********0.5 3,913,206 2,000,000 Waste Management, Inc., 7.375%2,000,000 NiSource, Inc., 3.63%, debentures senior notes, due 1/8/10 ***********0.2 2,178,706

due 1/11/06 *********************0.2 1,978,806Office Automation & Equipment

0.8 7,057,402 2,175,000 Pitney Bowes, INC., 4.75%Independent Power Producer Series MTN, due 15/1/16***********0.2 2,100,054

2,140,000 NRG Energy, Inc., 8.00%, secured Oil Companies – Exploration and Productionnotes, due 15/12/13 ***************0.3 2,396,800 875,000 Chesapeake Energy Corp., 7.50%

Investment Management and Advisory Services senior notes, due 15/9/13 **********0.1 934,063Ameriprise Financial, Inc.: 1,290,000 Kerr-McGee Corp., 6.95%, secured

1,250,000 5.35%, senior unsecured notes notes, due 1/7/24 *****************0.1 1,374,729due 15/11/10 ********************0.1 1,259,899 925,000 Magnum Hunter Resources, Inc.

1,065,000 5.65%, senior unsecured 9.60%, company guaranteednotes, due 15/11/15 ***************0.1 1,084,280 notes, due 15/3/12 ****************0.1 1,008,250

3,025,000 Franklin Resources, Inc., 3.70%notes, due 15/4/08 ****************0.2 2,950,028

Nuveen Investments:2,155,000 5.00%, due 15/9/10 ***************0.2 2,122,5593,000,000 5.50%, due 15/9/15 ***************0.3 2,954,394

0.9 10,371,160






Pemex Project Funding SovereignMaster Trust 3,385,000 Canada Mortgage & Housing

655,000 5.75%, notes due 15/12/15 *********0.1% $ 652,544 Corp., 4.80%, due 1/10/10 *********0.4% $ 3,406,711525,000 8.625%, company guaranteed 2,480,000 Mexico Government International

notes, due 1/2/22 *****************0.1 648,375 4.625%, notes, due 8/10/08 ********0.3 2,452,1001,090,000 Ras Laffan Lng III, 5.84% 0.7 5,858,811

Series 144A, due 30/9/27***********0.1 1,096,843 Special Purpose Banks0.6 5,714,804 2,775,000 Rabobank Capital Funding

Trust II, 5.26%Oil Companies – Integratednotes, due 31/12/49 ***************0.3 2,753,6715,000,000 Chevron Texaco Capital Co.

3.50%, company guaranteed Special Purpose Entitynotes, due 17/9/07 ****************0.5 4,900,130 3,550,000 OneAmerica Financial Partners

Inc., 7.00%, bondsOil Field Machinery and Equipmentdue 15/10/33 ********************0.5 4,013,5773,175,000 Cooper Cameron Corp., 2.65%

4,645,000 Resona Preferred Global Securitiessenior notes, due 15/4/07 **********0.3 3,070,739Ltd., 7.19%, due 31/12/49**********0.6 4,936,701

Oil Refining and Marketing1.1 8,950,278Enterprise Products Operating LP:

1,620,000 4.95%, senior notes, due 1/6/10 *****0.2 1,590,121 Telecommunication Services1,150,000 6.375%, company guaranteed 815,000 Qwest Corp., 7.74%, senior notes

notes, due 1/2/13 *****************0.1 1,205,654 due 15/6/13 *********************0.1 883,256

0.3 2,795,775 Telephone – Integrated3,275,000 BellSouth Corp., 4.75%, notesPipelines

due 15/11/12 ********************0.4 3,196,0073,795,000 El Paso Corp., 7.625%, notes3,500,000 Deutsche Telekom Internationaldue 1/9/08 **********************0.5 3,870,899

Finance B.V., 3.875%, companyPanhandle Eastern Pipe Line:guaranteed notes, due 22/7/08 *****0.3 3,420,5503,775,000 2.75%, senior notes

due 15/3/07 *********************0.5 3,671,810 0.7 6,616,5572,140,000 4.80%, senior notes Transport – Services

due 15/8/08 *********************0.2 2,117,081 2,925,000 FedEx Corp., 2.65%, notes1,180,000 Williams Companies, 6.375% due 1/4/07 **********************0.3 2,846,048

Series 144A, due 1/10/10***********0.1 1,184,425Transportation – Railway

1.3 10,844,215 1,040,000 BNSF Funding Trust I, 6.61%Property and Casualty Insurance company guaranteed

3,950,000 Kingsway America, Inc., 7.50% notes, due 15/12/55 ***************0.1 1,086,727senior notes, due 1/2/14 ***********0.5 4,076,052

Total Corporate Bonds (Cost $248,385,578)***********27.5 248,487,0214,025,000 Ohio Casualty Corp., 7.30%notes, due 15/6/14 ****************0.4 4,333,005 Tranche Loans 0.2

0.9 8,409,057 Multimedia428,000 Entravision CommunicationsPublishing – Periodicals

Corp. **************************0.1 430,4951,568,000 Dex Media East LLC, 12.125%company guaranteed notes Retail – Regional Department Storesdue 15/11/12 ********************0.2 1,842,400 408,000 Neiman-Marcus Group, Inc.

6.95%, due 6/4/13 ****************0.1 410,787Reinsurance1,475,000 Berkshire Hathaway, Inc., 4.625%

Total Tranche Loans (Cost $836,000) *****************0.2 841,282company guaranteednotes, due 15/10/13 ***************0.2 1,441,043

U.S. Government Obligations 70.8Rental Auto and Equipment Fannie Mae:

625,000 Hertz Corporation, 8.875%, senior 2,418,580 4.50%, due 1/5/19 ****************0.3 2,357,826notes, due 1/1/14 *****************0.1 639,844 2,037,171 4.00%, due 1/6/19 ****************0.2 1,948,251

1,186,728 5.50%, due 1/8/19 ****************0.1 1,194,871Savings and Loan and Thrifts – Eastern U.S.905,065 4.50%, due 1/4/20 ****************0.1 881,007640,000 Sovereign Bancorp, 4.80%

3,830,000 6.625%, due 15/11/30 *************0.5 4,738,346Series 144A due 1/9/10 ************0.1 627,887686,979 6.50%, due 1/6/32 ****************0.1 707,8851,200,000 Webster Capital Trust II, 10.00%

1,179,338 6.50%, due 1/7/32 ****************0.1 1,212,411company guaranteed3,060,104 5.50%, due 1/1/34 ****************0.3 3,038,619notes, due 1/4/27 *****************0.1 1,317,4282,269,964 4.50%, due 1/6/34 ****************0.2 2,143,3840.2 1,945,3154,139,091 5.00%, due 1/6/34 ****************0.4 4,019,9091,789,580 5.00%, due 1/7/34 ****************0.2 1,738,051

486,964 6.50%, due 1/9/34 ****************0.1 503,3831,695,652 6.00%, due 1/3/35 ****************0.2 1,715,401







1,193,281 4.50%, due 1/4/35 ****************0.1% $ 1,124,170 5,848,210 5.00%, due 1/2/20 ****************0.6% $ 5,792,3083,158,276 5.00%, due 1/4/35 ****************0.3 3,061,225 1,474,151 5.50%, due 1/11/33 ***************0.2 1,464,6916,756,885 5.00%, due 1/5/35 ****************0.7 6,549,252 4,725,409 6.00%, due 1/2/34 ****************0.5 4,793,8942,871,108 4.41%, due 1/7/35 ****************0.3 2,841,961 4,356,727 5.50%, due 1/12/34 ***************0.5 4,322,3631,563,498 4.69%, due 1/7/35 ****************0.2 1,532,078 3,703,945 5.50%, due 1/12/34 ***************0.4 3,674,7292,535,535 5.00%, due 1/7/35 ****************0.3 2,457,620 3,376,317 4.50%, due 1/2/35 ****************0.4 3,177,6072,544,964 5.50%, due 1/7/35 ****************0.3 2,526,093 11,952,353 5.00%, due 1/2/35 ****************1.3 11,575,1061,431,402 5.00%, due 1/8/35 ****************0.2 1,387,416 2,989,447 5.00%, due 1/5/35 ****************0.3 2,895,0934,862,711 5.50%, due 1/8/35 ****************0.5 4,817,630 1,392,754 5.00%, due 1/6/35 ****************0.2 1,348,7951,853,856 6.00%, due 1/8/35 ****************0.2 1,875,518 7,697,761 5.50%, due 1/6/35 ****************0.8 7,637,0442,231,577 6.00%, due 1/8/35 ****************0.3 2,257,747 Ginnie Mae:4,128,905 6.00%, due 1/9/35 ****************0.5 4,177,021 2,056,066 5.00%, due 1/11/33 ***************0.2 2,070,8362,097,019 6.00%, due 1/9/35 ****************0.2 2,121,455 2,334,836 4.50%, due 15/10/33 **************0.2 2,241,513

616,954 5.00%, due 1/11/35 ***************0.1 597,995 4,945,342 5.00%, due 15/4/34 ***************0.5 4,887,81046,870,000 3.25%, due 15/11/07 **************5.2 45,650,863 4,821,146 6.00%, due 20/10/34 **************0.5 4,928,151

4,041,531 4.75%, due 25/10/10 **************0.4 4,007,178 2,141,644 6.50%, due 20/2/35 ***************0.2 2,220,9019,775,000 5.50%, due 15/3/11 ***************1.1 10,115,268 5,996,014 5.50%, due 20/3/35 ***************0.7 6,024,1203,335,451 7.00%, due 1/9/14 ****************0.4 3,467,903 4,832,208 5.50%, due 20/5/35 ***************0.5 4,854,8592,799,439 6.00%, due 1/6/17 ****************0.3 2,862,491 44.7 401,400,2791,611,035 5.00%, due 1/11/18 ***************0.2 1,596,618

U.S. Treasury Bonds5,599,448 4.50%, due 1/5/19 ****************0.6 5,458,7907,250,000 8.875%, due 15/8/17* *************1.1 10,076,9356,689,666 4.50%, due 1/5/19 ****************0.7 6,521,6236,285,000 7.25%, due 15/8/22* **************0.9 8,186,6529,969,351 5.00%, due 1/8/19 ****************1.1 9,871,027

17,540,000 6.25%, due 15/8/23* **************2.3 20,950,653702,060 5.50%, due 1/9/19 ****************0.1 707,14112,900,000 5.25%, due 15/2/29* **************1.6 14,080,6082,909,362 5.50%, due 1/9/19 ****************0.3 2,929,32515,140,000 6.25%, due 15/5/30* **************2.1 18,807,8162,424,036 4.00%, due 1/2/20 ****************0.3 2,315,667

8.0 72,102,6646,946,458 5.50%, due 1/9/24 ****************0.8 6,939,409U.S. Treasury Inflation Indexed Obligations5,012,412 5.00%, due 1/5/25 ****************0.5 4,902,244

1,450,000 U.S. Inflation Index Bond1,942,465 7.00%, due 1/2/32 ****************0.2 2,031,5401.625%, due 15/1/15 **************0.2 1,457,7902,699,308 6.50%, due 1/5/32 ****************0.3 2,770,291

10,386,852 5.50%, due 1/2/33 ****************1.1 10,316,962 U.S. Treasury Notes4,566,365 5.50%, due 1/11/33 ***************0.5 4,534,305 17,224,000 3.00%, due 15/2/08* **************1.9 16,744,2944,445,355 5.00%, due 1/2/34 ****************0.5 4,324,146 15,298,000 4.125%, due 15/5/15* *************1.7 14,967,5482,698,648 5.50%, due 1/2/34 ****************0.3 2,673,543 5,080,000 4.25%, due 15/8/15* **************0.6 5,015,9066,134,563 5.00%, due 1/3/34 ****************0.7 5,957,923 15,856,000 5.375%, due 15/2/31* *************2.0 17,815,7065,698,762 5.00%, due 1/4/34 ****************0.6 5,534,670 21,670,000 3.50%, due 15/11/06* *************2.4 21,506,6302,176,809 5.00%, due 1/4/34 ****************0.2 2,114,130 19,228,000 3.125%, due 31/1/07* *************2.1 18,965,1345,610,931 5.00%, due 1/4/34 ****************0.6 5,457,942 1,885,000 3.875%, due 31/7/07 **************0.2 1,870,2748,843,575 6.00%, due 1/7/34 ****************1.0 8,951,918 5,430,000 4.00%, due 30/9/07* **************0.6 5,393,9453,067,160 6.50%, due 1/8/34 ****************0.4 3,153,771 9,305,000 4.125%, due 15/8/08* *************1.0 9,256,661

511,782 5.50%, due 1/11/34 ***************0.1 507,420 10,520,000 4.375%, due 15/11/08 *************1.2 10,524,93410,470,727 5.50%, due 1/12/34 ***************1.2 10,381,495 1,200,000 3.875%, due 15/9/10 **************0.1 1,175,392

4,591,679 5.50%, due 1/2/35 ****************0.5 4,559,441 915,000 4.25%, due 15/10/10 **************0.1 910,4974,127,807 5.50%, due 1/3/35 ****************0.5 4,089,406 16,475,000 4.50%, due 15/11/15* *************1.8 16,615,3013,936,467 5.50%, due 1/5/35 ****************0.4 3,906,649 14,020,000 8.875%, due 15/2/19* *************2.2 19,941,2073,316,352 6.00%, due 1/1/36 ****************0.4 3,347,443 17.9 160,703,429

Freddie Mac:2,298,331 6.00%, due 1/11/33 ***************0.3 2,324,706 Total U.S. Government Obligations2,426,643 5.00%, due 1/5/34 ****************0.3 2,354,822 (Cost $642,420,734)****************************70.8 635,664,1621,745,028 5.00%, due 1/5/34 ****************0.2 1,693,3811,029,681 6.50%, due 1/7/34 ****************0.1 1,058,755 Repurchase Agreement 0.3

491,982 6.50%, due 1/6/35 ****************0.1 504,382 $ 2,500,000 Lehman Brothers Holding, Inc.2,842,385 5.00%, due 1/8/35 ****************0.3 2,752,672 4.26%, dated 30/12/054,670,929 5.50%, due 1/9/35 ****************0.5 4,630,545 maturing 3/1/06, to be4,274,419 5.50%, due 1/9/35 ****************0.5 4,237,463 repurchased at $2,500,9441,117,978 5.00%, due 1/10/35 ***************0.1 1,082,692 collateralised by $6,485,000 in6,682,612 5.50%, due 1/10/35 ***************0.7 6,629,917 Fannie Mae 0.00% due 1/4/33,

22,230,000 2.75%, due 15/8/06 ***************2.5 21,979,512 with a value of $2,550,9634,400,000 3.875%, due 15/6/08 **************0.5 4,315,331 (Cost $2,500,000) ****************0.3 2,500,0002,343,968 5.50%, due 1/1/18 ****************0.3 2,360,196

Total Repurchase Agreement (Cost $2,500,000) *********0.3 2,500,0008,525,933 4.50%, due 1/2/18 ****************0.9 8,321,4444,611,348 5.00%, due 1/9/18 ****************0.5 4,573,4103,338,012 4.00%, due 1/4/19 ****************0.4 3,186,164






Preferred Stock 0.8% Purchased Sold Value $U.S. Date (Depreciation)Finance – Other Services

38,580 Chevy Chase Preferred Capital Credit Suisse First BostonCorp., Series A, 10.375%***********0.2 $ 2,160,480 USD 4,084,911 EURO 3,330,000 $ 3,947,061 27-Jan-06 $ 137,850

EURO 63,740,363 USD 78,498,000 75,634,661 16-Feb-06 (2,863,339)Real Estate Investment Trusts – DiversifiedUSD 13,533,000 EURO 11,244,795 13,343,136 16-Feb-06 189,864106,700 iStar Financial, Inc.

Series E, 7.875% *****************0.3 2,688,840Total $(2,535,625)

Savings and Loan and Thrifts – Eastern U.S.97,930 Chevy Chase Bank FSB, Series C

8.00% **************************0.3 2,536,387

Total Preferred Stock (Cost $7,479,426) ***************0.8 7,385,707


Cash, Receivables and Other assets in excessof liabilities ************************************0.4 3,700,843





US High Yield Fund




Corporate Bonds 91.2% Automotive and Truck Parts and EquipmentAdvanced Materials and Products 1,322,000 Accuride Corp., 8.50%, company

630,000 Hexcel Corp., 6.75%, senior guaranteed notes, due 1/2/15 *******0.1% $ 1,308,780subordinated notes, due 1/2/15 *****0.1 $ 611,100 Tenneco Automotive, Inc.:

3,227,000 8.625%, company guaranteedAdvertising Salesnotes, due 15/11/14* **************0.3 3,065,649648,000 Lamar Media Corp., 6.625%

650,000 10.25%, securedcompany guaranteed notesnotes, due 15/7/13 ****************0.1 713,375due 15/8/15 *********************0.1 653,670

1,297,000 TRW Automotive, Inc., 9.375%Aerospace and Defense – Equipment senior notes, due 15/2/13 **********0.1 1,410,488

1,925,000 BE Aerospace, Inc., 8.50%, senior 1,920,000 United Components, Inc., 9.375%notes, due 1/10/10 ****************0.2 2,064,563 senior subordinated notes

6,080,000 DRS Technologies, Inc., 6.875% due 15/6/13 *********************0.2 1,920,000senior subordinated notes Visteon Corp.:due 1/11/13 *********************0.6 5,844,400 1,945,000 7.00%, senior notes

320,000 Moog, Inc., 6.25%, senior due 10/3/14 *********************0.2 1,512,238subordinated notes, due 15/1/15*****0.0 316,800 3,242,000 8.25%, senior notes, due 1/8/10 *****0.3 2,771,910

0.8 8,225,763 1.3 12,702,440Agricultural Chemicals Automotive and Truck Parts and Equipment –

2,033,000 IMC Global, Inc., 10.875% Replacementscompany guaranteed notes 2,688,000 Affinia Group, Inc., 9.00%Series B, due 1/6/08 ***************0.2 2,261,713 company guaranteed notes

Airlines due 30/11/14 ********************0.2 2,136,9605,361,000 AMR Corp., 9.00%, debentures Building – Maintenance and Service

due 1/8/12* *********************0.5 4,677,472 1,300,000 HydroChem Industrial Services1,942,000 Delta Air Lines, Inc., 0.00% 9.25%, senior subordinated

due 16/3/08 *********************0.2 2,010,786 notes, due 15/2/13 ****************0.1 1,254,5000.7 6,688,258 Building – Residential and Commercial

Apparel Manufacturers 2,618,000 Beazer Homes USA, Inc., 6.875%650,000 Broder Brothers, 11.25%, senior company guaranteed notes

notes, due 15/10/10 ***************0.1 622,375 due 15/7/15 *********************0.3 2,523,098Levi Strauss & Co.: 3,660,000 D.R. Horton, Inc., 8.50%

1,850,000 8.80%, senior unsubordinated company guaranteed notesnotes, due 1/4/12 *****************0.2 1,873,125 due 15/4/12 *********************0.4 3,928,673

1,250,000 9.75%, senior notes 1,945,000 K. Hovnanian Enterprises, Inc.due 15/1/15 *********************0.1 1,306,250 6.50%, company guaranteed

1,900,000 12.25%, senior notes notes, due 15/1/14 ****************0.2 1,869,779due 15/12/12 ********************0.2 2,128,000 3,242,000 KB Home, 6.25%, senior notes

2,650,000 Quiksilver, Inc., 6.875%, company due 15/6/15 *********************0.3 3,153,639guaranteed notes, due 15/4/15 *****0.3 2,563,875 3,272,000 Meritage Homes Corp., 6.25%

company guaranteed notes0.9 8,493,625due 15/3/15 *********************0.3 2,993,880Athletic Equipment

3,175,000 William Lyon Homes, Inc.1,885,000 Riddell Bell Holdings, Inc.10.75%, company guaranteed8.375%, company guaranteednotes, due 1/4/13 *****************0.3 3,294,063notes, due 1/10/12 ****************0.2 1,757,763

1.8 17,763,132Automotive – Cars and Light Trucks

Building and Construction Products –2,593,000 Ford Capital B.V., 9.50%Miscellaneousdebentures, due 1/6/10 ************0.2 2,184,603

Building Materials Corp.:1,295,000 Ford Motor Co., 7.25%, notes480,000 7.75%, secured notesdue 1/10/08* ********************0.1 1,055,425

due 1/8/14 **********************0.0 465,6000.3 3,240,028823,000 8.00%, company guaranteed

notes, due 1/12/08 ****************0.1 836,3742,300,000 Nortek, Inc., 8.50%, senior

subordinated notes, due 1/9/14 *****0.2 2,231,000975,000 NTK Holdings, Inc., 0.00%, senior

discount notes, due 1/3/14 *********0.1 614,250

0.4 4,147,224






Building Products – Air and Heating Casino Hotels1,295,000 Goodman Global Holding 1,250,000 155 East Tropicana, 8.75%

Company, Inc., 7.875%, senior secured notes, due 1/4/12* *********0.1% $ 1,209,375subordinated notes Caesars Entertainment, Inc.:due 15/12/12 ********************0.1% $ 1,210,825 1,300,000 7.00%, senior notes

due 15/4/13 *********************0.1 1,392,687Building Products – Cement and Aggregate1,300,000 9.375%, senior subordinated3,371,000 Texas Industries, Inc., 7.25%

notes, due 15/2/07 ****************0.1 1,356,875senior notes, due 15/7/13 **********0.4 3,514,268Majestic Star Casino LLC:

Building Products – Wood 648,000 9.50%, company guaranteed1,621,000 Ainsworth Lumber Company, Ltd. notes, due 15/10/10 ***************0.1 685,260

7.25%, company guaranteed 1,302,000 9.75%, secured notesnotes, due 1/10/12 ****************0.2 1,467,005 due 15/1/11 *********************0.1 1,318,275

Building – Heavy Construction Mandalay Resort Group:2,918,000 Ahern Rentals, Inc., 9.25% 266,000 9.375%, senior subordinated

company guaranteed notes notes, due 15/2/10 ****************0.0 292,600due 15/8/13 *********************0.3 3,085,785 1,300,000 10.25%, senior subordinated

notes, due 1/8/07 *****************0.1 1,392,625Cable TelevisionMGM Mirage:1,322,000 Cablevision Systems Corp., 8.00%

1,295,000 6.625%, company guaranteedsenior notes, due 15/4/12 **********0.1 1,242,680notes, due 15/7/15 ****************0.1 1,298,2385,530,000 CCH I LLC, 11.00%, secured

2,916,000 8.375%, company guaranteednotes, due 1/10/15 ****************0.5 4,672,850notes, due 1/2/11 *****************0.3 3,134,7007,050,000 Charter Communications Holdings

1,950,000 9.75%, company guaranteedII LLC, 10.25%, senior notesnotes, due 1/6/07 *****************0.2 2,064,563due 15/9/10 *********************0.8 7,049,999

2,269,000 MTR Gaming Group, Inc., 9.75%2,598,000 Charter Communicationscompany guaranteed notesOperating LLC, 8.00%, seniordue 1/4/10 **********************0.3 2,433,503notes, due 30/4/12 ****************0.3 2,598,000

650,000 Poster Financial Group, Inc.CSC Holdings, Inc.:8.75%, secured notes1,970,000 7.00%, senior notesdue 1/12/11 *********************0.1 672,750due 15/4/12 *********************0.2 1,871,500

650,000 San Pasqual Casino, 8.00%, notes1,297,000 7.625%, debenturesSeries 144A, due 15/9/13***********0.1 663,000due 15/7/18 *********************0.1 1,238,635

3,248,000 Station Casinos, Inc., 6.875%3,275,000 Mediacom LLC, 9.50%, seniorsenior subordinated notesnotes, due 15/1/13* ***************0.3 3,213,594due 1/3/16 **********************0.4 3,337,319

2.3 21,887,258 9,725,000 Trump EntertainmentResorts, Inc. 8.50%, securednotes due 1/6/15 *****************1.1 9,530,499

3,257,000 Wynn Las Vegas LLC/Corp.6.625%, first mortgagedue 1/12/14 *********************0.3 3,183,717

3.5 33,965,986

Casino Services585,000 Herbst Gaming, Inc., 7.00%

company guaranteed notesdue 15/11/14 ********************0.1 585,000

Virgin River Casino Corp.:4,359,000 0.00%, senior subordinated

notes, due 15/1/13 ****************0.3 3,018,6089,215,000 9.00%, company guaranteed

notes, due 15/1/12 ****************0.9 9,445,375

1.3 13,048,983



US High Yield Fund




Cellular Telecommunications Chemicals – Specialty2,917,000 Centennial Cellular Operating Co. 7,660,000 Equistar Chemicals LP, 6.50%

10.125%, company guaranteed notes, due 15/2/06 ****************0.8% $ 7,698,299notes, due 15/6/13 ****************0.3% $ 3,186,823 Huntsman International, LLC:

1,322,000 Centennial Communications 1,945,000 7.375%, senior subordinatedCorp., 10.00%, senior notes notes, due 1/1/15 *****************0.2 1,886,650due 1/1/13 **********************0.1 1,341,830 548,000 10.125%, company guaranteed

1,250,000 Dobson Cellular Systems, 9.875% notes, due 1/7/09 *****************0.1 568,550secured notes, due 1/11/12 *********0.1 1,384,375 1,300,000 Lubrizol Corp., 6.50%

Dobson Communications Corp.: debentures, due 1/10/34 ***********0.1 1,361,7531,965,000 8.40%, senior notes 2,090,000 MacDermid, Inc., 9.125%

due 15/10/12 ********************0.2 1,965,000 company guaranteed notes3,242,000 8.875%, senior notes due 15/7/11 *********************0.2 2,223,238

due 1/10/13* ********************0.3 3,250,105 303,000 Millennium America, Inc., 9.25%Nextel Communications, Inc.: company guaranteed notes

3,905,000 5.95%, senior notes due 15/6/08 *********************0.0 328,376due 15/3/14 *********************0.4 3,930,488 Nalco Co.:

4,060,000 6.875%, senior notes 8,104,000 7.75%, senior notesdue 31/10/13 ********************0.5 4,238,980 due 15/11/11* *******************0.9 8,367,379

Rogers Wireless 1,297,000 8.875%, senior subordinatedCommunications, Inc.: notes, due 15/11/13 ***************0.1 1,365,093

1,600,000 7.50%, secured notes 3,267,000 OM Group, Inc., 9.25%, companydue 15/3/15 *********************0.2 1,736,000 unsecured notes, due 15/12/11 *****0.3 3,209,828

2,668,000 7.62%, secured notes 585,000 Rockwood Specialties Group, Inc.due 15/12/10 ********************0.3 2,768,050 7.50%, subordinated notes

1,500,000 8.00%, senior subordinated due 15/11/14 ********************0.1 585,731notes, due 15/12/12 ***************0.2 1,595,625 5,233,000 Tronox Worldwide LLC, 9.50%

3,255,000 9.75%, debentures, due 1/6/16 *****0.4 3,946,687 senior notes due 1/12/12 ***********0.6 5,363,825

3.0 29,343,963 3.4 32,958,722

Chemicals – Diversified Commercial ServicesHuntsman LLC: 1,024,000 Coinmach Corp., 9.00%, senior

1,250,000 11.40%, company guaranteed notes, due 1/2/10 *****************0.1 1,077,760notes, due 15/7/11 ****************0.1 1,331,250 648,400 LSP-Kendall Energy, 6.09%

2,194,000 11.50%, company guaranteed due 7/10/13 *********************0.1 644,348notes, due 15/7/12 ****************0.3 2,495,675 0.2 1,722,108

Lyondell Chemical Co.:Computer Services2,707,000 9.50%, company guaranteed

2,144,625 Solar Capital Corp., 6.81%notes, due 15/12/08 ***************0.3 2,852,501due 11/2/13 *********************0.2 2,158,2438,525,000 11.125%, secured notes

Sungard Data Systems, Inc.:due 15/7/12 *********************1.0 9,579,9691,122,000 9.125%, senior unsecured notes

1.7 16,259,395 Series 144A, due 15/8/13***********0.1 1,166,880Chemicals – Plastics 2,592,000 10.25%, senior unsecured notes

PolyOne Corp.: Series 144A, due 15/8/15***********0.3 2,604,9602,618,000 8.875%, senior notes 0.6 5,930,083

due 1/5/12 **********************0.3 2,578,730Consumer Products – Miscellaneous2,619,000 10.625%, company guaranteed

1,306,463 Amscan Holdings, 0.00%notes, due 15/5/10 ****************0.3 2,821,97222/12/13************************0.1 1,286,8661,285,000 Resolution Performance

9,870,000 Jarden Corp., 9.75%, companyProducts, Inc., 13.50%, seniorguaranteed notes, due 1/5/12 *******1.2 10,215,450subordinated notes

4,790,000 Playtex Products, Inc., 9.375%due 15/11/10* *******************0.1 1,365,313company guaranteed notes

0.7 6,766,015 due 1/6/11 **********************0.5 5,041,4752,398,000 Prestige Brands, Inc., 9.25%

senior subordinated notesdue 15/4/12* ********************0.2 2,374,020

2.0 18,917,811






Containers – Metal and Glass Electric – GenerationCrown Americas LLC: AES Corp.:

1,297,000 7.625%, senior notes 4,240,000 8.875%, senior notesdue 15/11/13 ********************0.1% $ 1,352,123 due 15/2/11 *********************0.5% $ 4,605,700

1,297,000 7.75%, senior notes 3,606,000 9.00%, secured notesdue 15/11/15 ********************0.1 1,348,880 due 15/5/15 *********************0.4 3,966,600

Owens Brockway Glass Allegheny Energy SupplyContainer, Inc.: Company LLC:

4,740,000 8.25%, company guaranteed 5,990,000 7.80%, notes, due 15/3/11**********0.7 6,559,049notes, due 15/5/13 ****************0.5 4,917,749 5,805,000 8.25%, unsecured notes

6,170,000 8.875%, company guaranteed due 15/4/12 *********************0.7 6,574,162notes, due 15/2/09 ****************0.7 6,470,787 3,506,000 Edison Mission Energy, 7.73%

Owens-Illinois, Inc.: senior notes, due 15/6/09 **********0.4 3,637,4752,050,000 7.50%, debentures, due 15/5/10 *****0.2 2,091,000 2,566,355 Tenaska Alabama Partners LP2,569,000 7.80%, debentures, due 15/5/18 *****0.3 2,569,000 7.00%, secured notes3,490,000 8.10%, senior notes due 30/6/21 *********************0.3 2,594,672

due 15/5/07 *********************0.4 3,585,975 5,631,000 Texas Genco Holdings, Inc.6.875%, senior notes2.3 22,335,514due 15/12/14 ********************0.6 6,123,713

Containers – Paper and Plastic3.6 34,061,371Graham Packaging Company, Inc.:

2,568,000 8.50%, company guaranteed Electric – Integratednotes, due 15/10/12 ***************0.3 2,542,320 CMS Energy Corp.:

7,845,000 9.875%, subordinated notes 1,561,000 6.30%, senior notes, due 1/2/12 *****0.2 1,551,244due 15/10/14 ********************0.8 7,688,099 2,269,000 6.875%, senior unsecured notes

1,945,000 Graphic Packaging International due 15/12/15 ********************0.2 2,300,199Corp., 8.50%, senior notes 7,690,000 7.50%, senior notesdue 15/8/11 *********************0.2 1,959,588 due 15/1/09 *********************0.9 7,959,149

232,099 Jefferson Smurfit Corp., 8.25% 2,977,000 9.875%, senior notescompany guaranteed notes due 15/10/07 ********************0.3 3,200,275due 1/10/12* ********************0.0 223,976 2,270,000 DPL, Inc., 6.875%, senior notes

4,543,000 Stone Container Finance, 7.375% due 1/9/11 **********************0.2 2,403,363company guaranteed notes 9,865,000 Mission Energy Holding Co.due 15/7/14 *********************0.4 4,156,845 13.50%, secured notes

due 15/7/08 *********************1.3 11,492,7241.7 16,570,8281,350,000 Nevada Power Co., 5.875%

Dialysis Centers general refinance mortgage1,250,000 DaVita, Inc., 6.625%, company due 15/1/15 *********************0.1 1,346,385

guaranteed notes, due 15/3/13 *****0.1 1,278,125 775,000 Sierra Pacific Power Co., 6.25%2,120,000 National Nephrology general refinance mortgage

Associates, Inc., 9.00% due 15/4/12 *********************0.1 790,500company guaranteed notes TXU Corp.:due 1/11/11 *********************0.3 2,358,500 1,300,000 6.50%, senior notes

0.4 3,636,625 due 15/11/24 ********************0.1 1,240,6843,900,000 6.55%, senior notesDiversified Manufacturing Operations

due 15/11/34 ********************0.4 3,704,6024,515,000 Jacuzzi Brands, Inc., 9.625%secured notes, due 1/7/10 **********0.6 4,819,763 3.8 35,989,125

4,932,000 JB Poindexter & Company, Inc., Electronic Components – Miscellaneous8.75% company guaranteed 2,394,000 Aavid Thermal Technologies, Inc.,notes due 15/3/14****************0.4 4,192,200 12.75%, company guaranteed

3,541,000 Park-Ohio Industries, Inc. notes, due 1/2/07 *****************0.3 2,471,8058.375%, company guaranteed 1,250,000 Flextronics International, Ltd.notes, due 15/11/14 ***************0.3 3,116,080 6.25%, senior subordinated

1.3 12,128,043 notes, due 15/11/14 ***************0.1 1,239,063Diversified Operations 0.4 3,710,868

1,945,000 Kansas City Southern Railway7.50%, company guaranteednotes, due 15/6/09 ****************0.1 2,017,938

650,000 Stripes Acquisition LLC, 10.625%senior notes, due 15/12/13 *********0.1 663,000

647,835 Walters Industries, Inc., 6.26%due 30/9/12 *********************0.1 655,531

0.3 3,336,469



US High Yield Fund




Electronic Components – Semiconductors Gambling (Non-Hotel)10,623,000 Advanced Micro Devices, Inc. 2,568,000 Mohegan Tribal Gaming Authority

7.75%, senior notes 8.00%, senior subordinateddue 1/11/12 *********************1.0% $ 10,782,344 notes, due 1/4/12 *****************0.3% $ 2,715,660

Freescale Semiconductor, Inc.: 3,905,000 Pinnacle Entertainment, Inc.3,995,000 6.90%, senior notes 8.25%, senior subordinated

due 15/7/09 *********************0.4 4,124,838 notes, due 15/3/12 ****************0.4 4,056,3193,170,000 7.125%, senior notes 3,755,000 River Rock Entertainment

due 15/7/14 *********************0.4 3,391,900 Authority, 9.75%, senior notes,2,618,000 Spanson LLC, 11.25%, senior due 1/11/11 *********************0.4 4,064,787

notes, due 15/1/16 ****************0.3 2,500,190 1.1 10,836,7661,950,000 STATS ChipPAC, Ltd., 6.75%

Gas – Distributioncompany guaranteed notesColorado Interstate Gas Co.:due 15/11/11 ********************0.2 1,891,500

1,250,000 5.95%, senior notes2.3 22,690,772 due 15/3/15 *********************0.1 1,213,600

Electronic Parts – Distribution 735,000 6.80%, senior notes2,165,000 Avnet, Inc., 6.00%, notes due 15/11/15 ********************0.1 754,680

due 1/9/15 **********************0.2 2,109,903 0.2 1,968,280Finance – Auto Loans Gas – Transportation

2,025,000 Ford Motor Credit, Co., 6.625% 4,000,000 Williams Gas Pipelines Centralnotes, due 16/6/08 ****************0.2 1,837,787 Inc., 7.375%, senior notes

General Motors Acceptance Corp.: due 15/11/06 ********************0.4 4,100,0002,275,000 5.85%, senior unsubordinated

Health Care Cost Containmentnotes, due 14/1/09 ****************0.2 2,036,1251,940,000 Team Health, Inc., 11.25%, senior2,275,000 6.15%, bonds, due 5/4/07* *********0.2 2,149,475

subordinated notes, due 1/12/13*****0.2 1,988,5002,593,000 7.25%, notes, due 2/3/11***********0.2 2,385,809Hotels and Motels8,755,000 7.75%, notes, due 19/1/10**********0.9 8,183,052

910,000 La Quinta Corp., 7.00%, notes3,580,000 8.00%, bonds, due 1/11/31 *********0.4 3,438,300due 15/8/07 *********************0.1 942,9882.1 20,030,548

1,495,000 Starwood Hotels & ResortsFinance – Investment Bankers and Brokers Worldwide, Inc., 7.875%

1,900,000 BCP Crystal U.S. Holdings Corp. company guaranteed notes9.625%, senior subordinated due 1/5/12 **********************0.2 1,655,712notes, due 15/6/14 ****************0.2 2,123,250

0.3 2,598,700Finance – Other Services

Independent Power Producer3,905,000 Alamosa Delaware, Inc., 8.50%3,000,000 AES China Generating Co., 8.25%senior notes, due 31/1/12 **********0.4 4,241,807

bonds, due 26/6/10 ***************0.3 3,038,865705,000 Athena Neurosciences Financial1,172,000 Mirant North America LLCLLC, 7.25%, company

7.375%, senior notesguaranteed notes, due 21/2/08 *****0.1 691,781due 31/12/13 ********************0.1 1,191,045990,000 Madison River Capital LLC

2,885,000 NRG Energy, Inc., 8.00%, secured13.25%, senior notesnotes, due 15/12/13 ***************0.3 3,231,200due 1/3/10 **********************0.1 1,051,875

Reliant Energy, Inc.:0.6 5,985,463 1,297,000 6.75%, secured notes

Food – Meat Products due 15/12/14* *******************0.1 1,138,1181,250,000 Pierre Foods, Inc., 9.875%, senior 1,645,000 9.25%, secured notes

subordinated notes, due 15/7/12*****0.1 1,275,000 due 15/7/10 *********************0.2 1,653,2254,538,000 9.50%, secured notesFood – Miscellaneous and Diversified

due 15/7/13 *********************0.5 4,572,035648,000 Chiquita Brands1.5 14,824,488International, Inc., 8.875%

senior notes, due 1/12/15 **********0.1 605,880 Machinery – Construction and Mining1,945,000 Doane Pet Care Co., 10.625% Terex Corp.:

senior subordinated notes 116,000 7.375%, company guaranteeddue 15/11/15 ********************0.2 2,037,388 notes, due 15/1/14 ****************0.0 115,420

Dole Food Company, Inc.: 2,843,000 10.375%, company guaranteed1,100,000 7.25%, company guaranteed notes, due 1/4/11 *****************0.3 3,027,795

notes, due 15/6/10 ****************0.1 1,072,500 0.3 3,143,215573,000 8.625%, senior notes

Machinery – Farmingdue 1/5/09 **********************0.1 590,1902,933,000 Case New Holland, Inc., 9.25%3,760,000 Wornick Co., 10.875%, secured

company guaranteed notesnotes, due 15/7/11 ****************0.3 3,872,800due 1/8/11 **********************0.3 3,152,9750.8 8,178,758






Machinery – General Industrial Oil – Field Services648,000 Chart Industries, Inc., 9.125% 1,297,000 Hornbeck Offshore Services, Inc.

senior subordinated notes 6.125%, senior notesdue 15/10/15 ********************0.1% $ 664,200 due 1/12/14 *********************0.1% $ 1,271,060

1,900,000 Titan Petrochemicals Group, Ltd.Medical – Hospitals8.50%, company guaranteedHCA, Inc.:notes, due 18/3/12 ****************0.2 1,833,5002,593,000 5.75%, senior notes

0.3 3,104,560due 15/3/14 *********************0.3 2,527,4021,299,000 6.375%, senior unsecured notes Oil Companies – Exploration and Production

due 15/1/15 *********************0.1 1,319,568 3,850,000 Chesapeake Energy Corp., 7.50%11,675,000 Tenet Healthcare Corp., 9.25% senior notes, due 15/9/13 **********0.4 4,109,874

senior notes, due 1/2/15 ***********1.2 11,645,813 1,950,000 Clayton Williams Energy, Inc.1,945,000 Triad Hospitals, Inc., 7.00% 7.75%, company guaranteed

senior subordinated notes notes, due 1/8/13 *****************0.2 1,881,750due 15/11/13 ********************0.2 1,959,588 875,000 El Paso Production Holding Co.

1.8 17,452,371 7.75%, company guaranteednotes, due 1/6/13 *****************0.1 912,188Metal – Diversified

1,890,000 Encore Acquisition Co., 6.25%3,925,000 Earle M. Jorgensen Co., 9.75%senior subordinated notessecured notes, due 1/6/12 **********0.4 4,219,375due 15/4/14 *********************0.2 1,804,950

Metal Processors & Fabrication 3,320,000 Energy Partners, Ltd., 8.75%2,587,839 Mueller Group, Inc., 5.49% company guaranteed notes

due 30/9/12 *********************0.3 2,617,754 due 1/8/10 **********************0.4 3,419,600Metal Products – Fasteners 4,510,000 Forest Oil Corp., 8.00%, senior

1,275,000 FastenTech, Inc., 11.50% notes, due 15/6/08 ****************0.5 4,724,224company guaranteed notes 1,150,000 Magnum Hunter Resources, Inc.due 1/5/11 **********************0.1 1,255,875 9.60%, company guaranteed

notes, due 15/3/12 ****************0.1 1,253,500Multimedia1,330,000 Swift Energy Co., 9.375%, senior3,580,000 LBI Media, Inc., 10.125%

subordinated notes, due 1/5/12 *****0.1 1,436,400company guaranteed notes150,000 Western Oil Sands, Inc., 8.375%due 15/7/12 *********************0.4 3,817,175

secured notes, due 1/5/12 **********0.0 169,313Non – Hazardous Waste Disposal

2.0 19,711,799Allied Waste North America:Oil Field Machinery & Equipment3,100,000 6.375%, secured notes

2,154,000 Dresser-Rand Group, Inc.due 15/4/11* ********************0.3 3,038,0007.375%, senior subordinated3,725,000 7.25%, senior notesnotes, due 1/11/14 ****************0.2 2,229,390due 15/3/15* ********************0.4 3,780,875

2,055,000 7.875%, senior notes Paper and Related Productsdue 15/4/13* ********************0.2 2,132,063 5,825,000 Boise Cascade LLC, 7.125%

650,000 Browning-Ferris Industries, Inc. company guaranteed notes9.25%, debentures, due 1/5/21 *****0.1 672,750 due 15/10/14 ********************0.6 5,460,938

1.0 9,623,688 Rock-Tenn Co.:3,242,000 5.625%, bonds, due 15/3/13********0.3 2,869,170Office Automation and Equipment1,297,000 8.20%, senior notes5,430,000 Xerox Capital Trust I, 8.00%

due 15/8/11 *********************0.1 1,322,940company guaranteed notes1.0 9,653,048due 1/2/27 **********************0.6 5,620,050

4,460,000 Xerox Corp., 6.875%, senior Pharmacy Servicesnotes, due 15/8/11 ****************0.5 4,638,400 676,000 Omnicare, Inc., 6.875%, senior

1.1 10,258,450 subordinated notesdue 15/12/15 ********************0.1 689,520Office Supplies and Forms

ACCO Brands Corp.: Physical Therapy and Rehabilitation Centers270,000 6.12%, due 17/8/12 ***************0.0 272,633 3,530,000 HEALTHSOUTH Corp., 7.625%

5,561,000 7.625%, company guaranteed notes, due 1/6/12* ****************0.4 3,600,600notes, due 15/8/15 ****************0.6 5,269,047 400,000 Psychiatric Solutions, Inc.,

6.26% company guaranteed0.6 5,541,680notes due 1/7/12 *****************0.0 403,168

650,000 7.75% company guaranteednotes due 15/7/15****************0.1 674,375

0.5 4,678,143



US High Yield Fund




Physicians Practice Management Private Corrections1,900,000 US Oncology Holdings, Inc. Corrections Corporation of

9.26%, senior notes America:due 15/3/15 *********************0.2% $ 1,900,000 1,250,000 6.25%, company guaranteed

2,603,000 US Oncology, Inc., 10.75% notes, due 15/3/13 ****************0.1% $ 1,243,750company guaranteed notes 2,343,000 7.50%, senior notes, due 1/5/11 *****0.3 2,436,720due 15/8/14 *********************0.3 2,902,345 0.4 3,680,470

0.5 4,802,345 Publishing – NewspapersPipelines 3,267,000 Block Communications, Inc.

2,000,000 ANR Pipeline Co., 8.875%, notes 8.25%, senior notesdue 15/3/10 *********************0.2 2,147,430 due 15/12/15 ********************0.3 3,250,665

1,940,000 Aquila Canada Finance Corp. Publishing – Periodicals7.75%, company guaranteed 2,225,000 CBD Media Holdings LLC, 9.25%notes, due 15/6/11 ****************0.2 1,993,350 senior notes, due 15/7/12* *********0.2 2,236,125

Dynegy Holdings: 1,290,000 CBD Media, Inc., 8.625%1,297,000 7.125%, debentures company guaranteed notes

due 15/5/18 *********************0.1 1,160,815 due 1/6/11 **********************0.1 1,322,2501,300,000 9.875%, secured, notes 7,102,000 Dex Media, Inc., 8.00%, notes

due 15/7/10 *********************0.1 1,431,625 due 15/11/13 ********************0.9 7,279,5502,893,000 10.125%, secured notes 2,957,000 Dex Media West LLC, 5.875%

due 15/7/13 *********************0.3 3,283,555 senior notes, due 15/11/11 *********0.3 2,990,266El Paso Corp.: Primedia, Inc.:

3,067,000 6.375%, notes, due 1/2/09**********0.3 3,020,995 1,295,894 6.34%, 30/9/13 ******************0.1 1,271,5967,720,000 6.50%, debentures, due 1/6/08 *****0.9 7,681,399 4,618,000 8.875%, company guaranteed1,880,000 7.00%, senior notes notes, due 15/5/11 ****************0.4 4,283,195

due 15/5/11 *********************0.2 1,875,3002.0 19,382,9825,826,000 7.42%, notes, due 15/2/37**********0.6 5,563,830

Racetracks2,240,000 7.625%, notes, due 1/9/08**********0.2 2,284,8003,890,000 Penn National Gaming, Inc.3,670,000 7.875%, notes, due 15/6/12* *******0.4 3,798,450

6.75%, senior subordinated4,185,000 9.625%, debenturesnotes, due 1/3/15 *****************0.4 3,841,375due 15/5/12 *********************0.5 4,634,888

1,975,000 El Paso Natural Gas, 7.625% Real Estate Investment Trusts – Health Caredue 1/8/10 **********************0.2 2,086,744 3,580,000 Senior Housing Properties Trust

1,250,000 Holly Energy Partners LP, 6.25% 8.625%, senior notescompany guaranteed notes due 15/1/12 *********************0.3 3,938,000due 1/3/15 **********************0.1 1,217,188 Ventas Realty LP:

534,984 MGG Midstream Holdings LP 650,000 6.75%, company guaranteed0.00%, due 30/6/12 ***************0.1 540,002 notes, due 1/6/10 *****************0.1 669,500

5,525,000 Northwest Pipeline Corp. 650,000 7.125%, company guaranteed8.125% company guaranteed notes, due 1/6/15 *****************0.1 685,750notes due 1/3/10 *****************0.7 5,884,125 0.5 5,293,250

2,743,000 Southern Natural Gas Co.Real Estate Investment Trusts – Hotels8.875%, unsubordinated notes

4,035,000 Host Marriott LP, 6.375%due 15/3/10 *********************0.3 2,945,200company guaranteed notesTarga Resources, Inc.:due 15/3/15 *********************0.5 4,045,0873,244,521 0.00%, due 31/10/07 **************0.3 3,240,465

La Quinta Properties, Inc.:627,972 0.00%, due 31/10/11 **************0.1 631,897315,000 7.00%, senior notes2,616,549 0.00%, due 31/10/12 **************0.3 2,637,272

due 15/8/12 *********************0.0 342,5635,980,000 Transcontinental Gas Pipe Line355,000 8.875%, senior notesCorp., 7.00%, notes

due 15/3/11 *********************0.0 387,394due 15/8/11 *********************0.7 6,271,5243,310,000 TransMontaigne, Inc., 9.125% 0.5 4,775,044

senior subordinated notes Recyclingdue 1/6/10 **********************0.3 3,268,625 2,519,000 Aleris International, Inc.

1,600,000 Williams Companies, Inc., 7.75% 10.375%, secured notesnotes, due 15/6/31 ****************0.2 1,696,000 due 15/10/10 ********************0.3 2,764,603

7.3 69,295,479 Rental Auto and Equipment972,000 Hertz Corporation, 8.875%, senior

notes, due 1/1/14 *****************0.1 995,085






Retail – Automobile Satellite Telecommunications3,386,000 Asbury Automotive Group, Inc. INTELSAT Bermuda, Ltd.:

8.00%, senior subordinated 1,250,000 8.25%, senior notesnotes, due 15/3/14* ***************0.3% $ 3,250,560 due 15/1/13 *********************0.1% $ 1,268,750

2,593,000 8.625%, senior notesRetail – Drug Storedue 15/1/15 *********************0.4 2,631,895Jean Coutu Group, Inc.:

1,300,000 PanAmSat Corp., 9.00%, senior3,705,000 7.625%, senior notesdiscount notes, due 15/8/14 ********0.1 1,368,250due 1/8/12 **********************0.4 3,667,950

650,000 PanAmSat Holding Corp., 0.00%5,089,000 8.50%, senior subordinateddue 1/11/14 *********************0.0 458,250notes, due 1/8/14 *****************0.5 4,681,880

1,950,000 Zeus Special Subsidiary, Ltd.3,268,000 Rite Aid Corp., 7.50%, company0.00%, senior discount notesguaranteed notes, due 15/1/15 *****0.3 3,104,600due 1/2/15 **********************0.1 1,291,875

1.2 11,454,4300.7 7,019,020

Retail – Propane DistributionSoap and Cleaning Preparation1,300,000 Amerigas Partners LP, 7.25%

1,250,000 Church & Dwight, Inc., 6.00%senior unsecured notescompany guaranteed notesdue 20/5/15 *********************0.1 1,332,500due 15/12/12 ********************0.1 1,237,500Ferrellgas Partners LP:

1,297,000 6.75%, senior notes, due 1/5/14 *****0.1 1,232,150 Special Purpose Entity4,060,000 8.75%, senior notes 809,000 American Commercial Lines

due 15/6/12 *********************0.5 4,039,700 9.50%, company guaranteednotes, due 15/2/15 ****************0.1 877,7650.7 6,604,350

CCM Merger, Inc.:Retail – Regional Department Stores 323,375 6.52%, due 21/7/12 ***************0.0 325,235

1,950,000 J.C. Penney Company, Inc. 2,917,000 8.00%, notes, due 1/8/13***********0.3 2,814,9058.00%, senior unsecured notes 648,000 Chukchansi Economicdue 1/3/10 **********************0.2 2,145,482 Development Authority, 8.00%

Neiman-Marcus Group, Inc.: senior notes, due 15/11/13 *********0.1 668,250794,000 6.95%, due 6/4/13 ****************0.1 799,423 1,175,000 Harvest Operations Corp.

3,242,000 7.125%, debentures, due 1/6/28 *****0.3 2,998,850 7.875%, senior notes4,563,000 10.375%, company guaranteed due 15/10/11 ********************0.1 1,175,000

notes, due 15/10/15* **************0.5 4,659,964 650,000 Interactive Health LLC, 7.25%1.1 10,603,719 senior notes, due 1/4/11 ***********0.1 529,750

2,470,000 K&F Acquisition, Inc., 7.75%Retail – Restaurantscompany guaranteed notes3,165,000 Domino’s, Inc., 8.25%, seniordue 15/11/14* *******************0.3 2,507,050subordinated notes, due 1/7/11 *****0.3 3,323,250

555,000 Standard Aero Holdings, Inc.2,259,000 Friendly Ice Cream Corp.8.25%, company guaranteed8.375%, senior notesnotes, due 1/9/14 *****************0.0 457,875due 15/6/12 *********************0.2 2,021,805

16,695,219 TRAINS, 7.65%, secured notes1,970,000 Landry’s Restaurants, Inc., 7.50%due 15/6/15* ********************1.7 17,182,518company guaranteed notes

Vanguard Health Holdingdue 15/12/14 ********************0.2 1,851,800Company I LLC:3,680,000 VICORP Restaurants, Inc.

3,890,000 0.00%, senior discount notes10.50%, seniordue 1/10/15 *********************0.3 2,859,150notes, due 15/4/11 ****************0.4 3,431,600

3,596,000 9.00%, senior subordinated1.1 10,628,455notes, due 1/10/14 ****************0.4 3,838,730

Rubber – Tires3.4 33,236,228Goodyear Tire & Rubber Co.:

Steel – Producers5,060,000 7.86%, notes, due 15/8/11**********0.5 4,958,8001,945,000 AK Steel Corp., 7.75%, company4,902,000 8.50%, notes, due 15/3/07**********0.6 5,036,805

guaranteed notes, due 15/6/12 *****0.2 1,765,0883,273,000 9.00%, senior notes, due 1/7/15 *****0.3 3,240,270648,000 Chaparral Steel Co., 10.00%1.4 13,235,875

company guaranteednotes, due 15/7/13 ****************0.1 701,460

2,618,000 International Steel Group, Inc.6.50%, senior notesdue 15/4/14 *********************0.2 2,631,090

0.5 5,097,638



US High Yield Fund




Telecommunication Equipment Theaters3,082,000 Eschelon Operating Co., 8.375% 5,700,000 Marquee Holdings, Inc., 0.00%

company guaranteed notes senior discount notesdue 15/3/10 *********************0.3% $ 2,866,260 due 15/8/14 *********************0.4% $ 3,662,250

5,115,000 Lucent Technologies, Inc., 6.45% Transportation – Marinedebentures, due 15/3/29 ***********0.5 4,411,688 2,519,000 General Maritime Corp., 10.00%

0.8 7,277,948 senior notes, due 15/3/13 **********0.3 2,884,255845,000 H-Lines Finance Holding Corp.Telecommunication Services

0.00%, senior discount notes1,300,000 Cincinnati Bell Tele Co., 6.30%due 1/4/13 **********************0.1 703,463company guaranteed notes

2,756,000 Horizon Lines LLC, 9.00%due 1/12/28 *********************0.1 1,189,500company guaranteed notesQwest Corp.:due 1/11/12 *********************0.3 2,914,4701,500,000 5.625%, notes, due 15/11/08 *******0.2 1,492,500

2,529,000 Ship Finance International, Ltd.5,461,000 7.875%, senior notes8.50%, senior notesdue 1/9/11 **********************0.6 5,911,532due 15/12/13 ********************0.2 2,377,2609,595,000 8.875%, notes, due 15/3/12 ********1.1 10,866,337

2,504,000 Time Warner Telecommunications 0.9 8,879,448Holdings, Inc., 9.25%, company Transportation – Railwayguaranteed notes, due 15/2/14 *****0.3 2,654,240 Grupo Transportation Ferroviaria

2,544,000 Time Warner Telecom, Inc. Mexicana SA DE CV:10.125%, senior notes 1,300,000 9.375%, senior notesdue 1/2/11* *********************0.3 2,677,560 due 1/5/12 **********************0.1 1,430,000

2.6 24,791,669 648,000 12.50%, senior notesdue 15/6/12 *********************0.1 741,960Telephone – Integrated

Cincinnati Bell, Inc.: 0.2 2,171,960650,000 7.25%, company guaranteed

Total Corporate Bonds (Cost $884,525,996)***********91.2 883,214,416notes, due 15/7/13 ****************0.1 679,2503,002,000 8.375%, senior subordinated

Repurchase Agreement 4.0notes, due 15/1/14* ***************0.3 2,968,228$38,300,000 Lehman Brothers Holding, Inc.Hawaiian Telecom

4.26%, dated 30/12/05Communications, Inc.:maturing 3/1/06, to be950,000 9.75%, senior notesrepurchased at $38,300,039due 1/5/13* *********************0.1 933,375collateralised by $180,395,0002,598,000 12.50%, senior subordinatedin Fannie Mae 0.00%notes, due 1/5/15 *****************0.3 2,442,120due 1/6/31 – 1/4/33 with a1,250,000 Level 3 Financing, Inc., 10.75%value of $39,066,040company guaranteed notes(Cost $38,300,000) ***************4.0 38,300,000due 15/10/11 ********************0.1 1,115,625

MCI, Inc.: Total Repurchase Agreement (Cost $38,300,000) ********4.0 38,300,0001,625,000 6.91%, senior notes, due 1/5/07 *****0.2 1,641,2501,300,000 6.68%, senior notes, due 1/5/09 *****0.1 1,345,500 Preferred Stock 0.8

Qwest Capital Funding, Inc.:Automotive – Cars and Light Trucks1,297,000 6.875%, company guaranteed

87,700 General Motors Corp., Series Anotes 15/7/28 ********************0.1 1,189,9984.50% **************************0.2 1,829,422648,000 7.75%, company guaranteed

notes, due 15/2/31 ****************0.1 625,320 Containers – Metal and Glass3,890,000 Qwest Communications 2,925 Owens-Illinois, Inc., Series A

International, Inc., 7.50% 4.75% **************************0.0 99,450senior notes, due 15/2/14 **********0.4 4,016,424 Non-Hazardous Waste Disposal

1.8 16,957,090 18,370 Allied Waste Industries, Inc.Series D, 6.25% ******************0.5 4,799,162Television

1,945,000 Sinclair Broadcast Group, Inc. Real Estate Investment Trusts – Hotels8.00%, company guaranteed 43,405 Strategic Hotel Capital, Inc.notes, due 15/3/12 ****************0.2 2,013,075 Series 144A, 8.50% ***************0.1 1,147,520

3,257,000 Videotron Ltee, 6.875%, companyTotal Preferred Stock (Cost $7,778,614) ***************0.8 7,875,554guaranteed notes, due 15/1/14 *****0.3 3,313,998

0.5 5,327,073Convertible Bonds 1.2

Textile ProductsAdvertising Services1,297,000 INVISTA, 9.25%, notes

1,968,000 Lamar Advertising Co., 2.875%due 1/5/12 **********************0.1 1,391,033senior notes, due 31/12/10 *********0.2 2,088,540






Electronics – Military Purchased Sold Value $U.S. Date (Depreciation)1,950,000 L-3 Communications Corp.

3.00%, due 1/8/35* ***************0.2% $ 1,937,813 Credit Suisse First BostonEURO 134,222,331 USD 165,838,000 $159,268,948 16-Feb-06 $(6,569,052)Medical – HospitalsUSD 19,868,000 EURO 16,501,115 19,580,313 16-Feb-06 287,6872,440,000 Lifepoint Hospitals, Inc., 3.25%

due 15/8/25 *********************0.2 2,235,650Total $(6,281,365)

Medical – Nursing Homes4,748,000 Manor Care, Inc.,

2.125%, due 1/8/35 ***************0.5 4,914,180

Telecom Services972,000 Dobson Communications Corp.

1.50%, Series 144Adue 1/10/25 *********************0.1 905,175

Total Convertible Bonds (Cost $12,374,251)************1.2 12,081,358


Cash, Receivables and Other assets in excessof liabilities ************************************2.8 27,448,726





US Short-Term Bond Fund




Corporate Bonds 28.2% Oil Companies – IntegratedBeverages – Non-Alcoholic 790,000 BP Capital Markets PLC, 2.75%

850,000 Bottling Group LLC, 2.45% company guaranteed notessenior notes, due 16/10/06 ********** 1.3 $ 833,794 due 29/12/06 ********************* 1.2% $ 775,188

Cable Television Oil Refining and Marketing725,000 Lenfest Communications, Inc. Enterprise Products Operating LP:

10.50%, senior subordinate 630,000 4.00%, senior notes due 15/10/07 **** 1.0 617,096notes, due 15/6/06 ***************** 1.2 740,406 130,000 4.625%, senior notes

due 15/10/09 ********************* 0.2 126,902Cellular Telecommunications1.2 743,998310,000 Rogers Wireless, Inc., 7.62%

secured notes, due 15/12/10 ********* 0.5 320,075 Pipelines340,000 Williams Companies, Inc., 5.89%Chemicals – Specialty

notes, due 1/10/10 ***************** 0.5 345,100255,000 Lubrizol Corp., 4.625%senior notes, due 1/10/09 *********** 0.4 250,143 Reinsurance

1,305,000 Berkshire Hathaway Finance Corp.Diversified Financial Services3.375% notes, due 15/10/08 ********* 2.0 1,258,228General Electric Capital Corp.:

1,985,000 2.85%, notes, due 30/1/06*********** 3.2 1,982,869 Retail – Discount1,290,000 3.50%, notes, due 15/8/07*********** 2.0 1,264,494 485,000 Wal-Mart Stores, Inc., 4.125%

5.2 3,247,363 notes, due 1/7/10 ****************** 0.7 470,588

Electric – Integrated Special Purpose Entity1,705,000 FirstEnergy Corp., 5.50% 135,000 Chukchansi Economic Development

notes due 15/11/06 **************** 2.7 1,711,483 Authority, 8.06% senior notes495,000 Southern California Edison, Co. due 15/11/12 ********************* 0.2 137,700

6.375%, notes, due 15/1/06 ********* 0.8 495,175 Telecom Services195,000 TXU Corp., 6.375% 320,000 Verizon Global Funding Corp.

senior notes, due 15/6/06 *********** 0.3 195,975 4.00%, senior unsecured notes550,000 TXU Energy Co., LLC, 4.92% due 15/1/08 ********************** 0.5 313,988

senior notes, due 17/1/06 *********** 0.9 549,984Telephone – Integrated

4.7 2,952,617 490,000 Mountain States Telephone &Electronic Components – Semiconductors Telegraph Co., 6.00% debentures

450,000 Freescale Semiconductor, Inc. due 1/8/07 *********************** 0.8 490,0006.90%, senior notes Transportation – Railwaydue 15/7/09 ********************** 0.7 462,375 265,000 Grupo Transportacion

Finance – Auto Loans Ferroviaria Mexicana SA de CV410,000 Ford Motor Credit, Co., 6.625% 12.50%, senior notes due 15/6/12 **** 0.5 303,425

notes, due 16/6/08Total Corporate Bonds (Cost $18,051,862) *************28.2 17,778,866General Motors Acceptance Corp.: ****** 0.6 372,095

800,000 4.50%, notes, due 15/7/06*********** 1.2 775,751 U.S. Government Obligations 70.5515,000 7.25%, notes, due 2/3/11************ 0.8 473,849 U.S. Government Agencies

2.6 1,621,695 655,000 Federal Home Loan Bank System3.75%, 15/5/07 ******************* 1.0 646,465Finance – Investment Bankers and Brokers

2,465,000 Freddie Mac, 3.625%, 15/9/06 ********* 3.9 2,447,6661,035,000 Citigroup, Inc., 3.50%notes due 1/2/08 ****************** 1.6 1,008,129 4.9 3,094,131

535,000 Lehman Brothers Holdings, Inc. U.S. Treasury Inflation Indexed Obligations4.50%, notes, due 26/7/10*********** 0.8 524,316 U.S. Inflation Indexed Bond:

2.4 1,532,445 375,000 3.375%, due 15/1/07 *************** 0.8 475,0912,310,000 3.625%, due 15/1/08* ************** 4.6 2,925,604Gas – Transportation

650,000 Williams Gas Pipelines Central Inc. 5.4 3,400,6957.375%, senior notesdue 15/11/06 ********************* 1.1 666,250

Independent Power Producer310,000 Mirant North America LLC 7.375%

senior notes due 31/12/13 *********** 0.5 313,488






U.S. Treasury Notes Retail – Regional Department Stores40,000 2.75%, due 30/6/06 **************** 0.1% $ 39,702 65,000 Neiman-Marcus Group, Inc. 6.95%,

2,155,000 2.50%, due 30/9/06* *************** 3.4 2,125,285 due 6/4/13 *********************** 0.1% $ 65,4441,065,000 2.50%, due 31/10/06 *************** 1.7 1,048,900

Total Tranche Loans (Cost $373,880) ****************** 0.6 376,5511,295,000 3.50%, due 15/11/06 *************** 2.0 1,285,2372,545,000 2.875%, due 30/11/06* ************* 4.0 2,510,505

Repurchase Agreement 1.31,170,000 3.00%, due 31/12/06* ************** 1.8 1,153,867$ 800,000 Lehman Brothers Holding, Inc.855,000 3.125%, due 31/1/07 *************** 1.3 843,311

4.26%, dated 30/12/05 maturing665,000 2.25%, due 15/2/07 **************** 1.0 649,3373/1/06, to be repurchased at1,300,000 3.375%, due 28/2/07* ************** 2.0 1,284,564$801,695 collateralised by2,125,000 3.75%, due 31/3/07* *************** 3.3 2,107,569$1,500,000 in Fannie Mae 0.00%3,820,000 3.625%, due 30/4/07* ************** 6.1 3,781,204due 1/9/33, with a value of1,020,000 3.125%, due 15/5/07 *************** 1.6 1,002,668$817,729 (Cost $800,000) ********** 1.3 800,000637,000 3.875%, due 31/7/07 *************** 1.0 632,024

3,280,000 2.75%, due 15/8/07* *************** 5.1 3,196,209 Total Repurchase Agreement (Cost $800,000)************ 1.3 800,00065,000 4.00%, due 30/9/07 **************** 0.1 64,568

4,100,000 4.25%, due 31/10/07* ************** 6.6 4,089,269 Total Investments (Cost $64,072,615)****************100.6 63,359,7372,085,000 3.00%, due 15/11/07* ************** 3.2 2,033,688

Liabilities in excess of other assets ******************** (0.6) (351,618)850,000 4.25%, due 30/11/07 *************** 1.3 847,776390,000 3.75%, due 15/5/08* *************** 0.6 384,577 Net Assets attributable to holders of redeemable940,000 4.375%, due 15/11/08 ************** 1.5 940,441 ordinary shares ********************************100.0 $63,008,119850,000 4.00%, due 15/6/09 **************** 1.3 839,940

1,465,000 3.50%, due 15/8/09* *************** 2.3 1,422,824530,000 3.50%, due 15/2/10 **************** 0.8 512,817 * All or part of these securities were out on loan as at 31 December 2005. See note 7.

1,410,000 4.125%, due 15/8/10* ************** 2.2 1,396,5611,175,000 3.875%, due 15/9/10* ************** 1.8 1,150,9041,780,000 4.25%, due 15/10/10* ************** 2.8 1,771,241 Forward Currency Contracts, Open at 31 December 2005

790,000 4.50%, due 15/11/10 *************** 1.3 794,506Currency Unrealised60.2 37,909,494

Currency Currency Market Settle Appreciation/Total U.S. Government Obligations Purchased Sold Value $U.S. Date (Depreciation)

(Cost $44,846,873)******************************70.5 44,404,320

Credit Suisse First BostonTranche Loans 0.6EURO 23,912,314 USD 29,340,000 $28,374,482 16-Feb-06 $(965,518)Computer ServicesUSD 7,912,000 EURO 6,616,612 7,851,308 16-Feb-06 60,692224,438 Solar Capital Corp., 6.81% 11/2/13 **** 0.4 225,863

Total $(904,826)Office Supplies and Forms25,000 ACCO Brands Corp., 6.12%

due 17/8/12 ********************** 0.0 25,244

Pipelines59,443 MGG Midstream Holdings LP

0.00%, due 30/6/12 **************** 0.1 60,000



Euro Reserve Fund


Percentageof Net Fair

Principal Amount Assets Value

Time Deposits 100.1%43,800,000 ABN AMRO Bank N.V., 2.20%

1/3/06 *************************19.1 4 3,799,9993,427,163 Alliance & Leicester PLC, 2.32%

1/9/06 *************************17.1 3,427,1632,500,000 Barclays Bank PLC, 2.14% 1/3/06 *****12.5 2,500,0003,426,727 Fortis Bank NV, 2.40%, 1/4/06 *******17.1 3,426,7273,426,156 HBOS Treasury Services PLC

2.38%, 1/4/06*******************17.1 3,426,1563,428,001 Northern Rock PLC, 2.33%

1/6/06 *************************17.2 3,428,001

Total Time Deposits (Cost $20,008,046) *************100.1 20,008,046


Liabilities in excess of other assets ******************* (0.1) (12,547)

Net Assets attributable to holders of redeemableordinary shares *******************************100.0 419,995,499



US Dollar Reserve Fund




355,000 Washington State Housing FinanceTaxable Variable Rate Demand Notes 56.7%Community Multifamily Revenue3,115,000 Alexander City Special Care(Carlyle Care Center), Series BFacilities Financial Authority4.57%, due 1/12/25 ****************0.9% $ 355,0004.42%, due 1/10/23 ****************7.4 $ 3,115,000

2,230,000 Washington, Missouri Industrial500,000 Anaheim, California HousingDevelopment Authority RevenueAuthority Multifamily Revenue(Pauwels Project)(Sea Wind Apartments), Series C4.71%, due 1/12/19 ****************5.3 2,230,0004.49%, 15/7/33********************1.2 500,000

1,400,000 Atlanta, Georgia Urban Residential Total Taxable Variable Rate Demand NotesFinance Authority Multifamily (Cost $23,565,000)*****************************56.7 23,565,000Revenue (Park District Project)Series B, 4.49%, 1/12/37 ************3.4 1,400,000 Repurchase Agreement 26.3

2,765,000 Aurora, Colorado Centretech $5,000,000 Bear Sterns Holding, Inc., 4.30%Metropolitan District General dated 30/12/05 maturing 3/1/06,Obligation, Series B, 5.35% to be repurchased at $5,004,3631/12/17 **************************6.6 2,765,000 collateralised by $5,065,000 in

California Infrastructure and Fannie Mae 0.00%, due 25/2/32,Economic Development with a value of $5,104,449Industrial: (Cost $5,000,000) ****************12.1 5,000,000

1,805,000 4.49%, 1/4/24*********************4.4 1,805,000 5,900,000 Lehman Brothers Holding, Inc.800,000 (Los Angeles SPCA), 4.59% 4.35%, dated 30/12/05 maturing

due 1/7/33 ***********************1.9 800,000 3/1/06, to be repurchased atCalifornia Statewide Communities $5,900,454 collateralised by

Development Authority $15,300,000 in Fannie MaeMultifamily: 0.00% due 1/4/33, with a value

625,000 (Emerald Gardens), 4.49% of $6,018,464 (Cost $5,900,000) ****14.2 5,900,000due, 5/3/33***********************1.5 625,000

400,000 (Northwoods), 4.49% Total Repurchase Agreement (Cost $10,900,000) *******26.3 10,900,000due 1/5/34 ***********************1.0 400,000

Corporate Bonds 5.11,500,000 Hercules, California RedevelopmentPublishing – BooksAgency Industrial Development

2,100,000 Dickinson Press, Inc., 4.50%Revenue (Pro Media Project)notes, due 1/8/18 ******************5.1 2,100,000Series B, 4.54%, due 1/7/35**********3.6 1,500,000

655,000 Illinois Development Finance Total Corporate Bonds (Cost $2,100,000) **************5.1 2,100,000Authority Revenue, Series B4.62%, due 1/6/33 *****************1.6 655,000 Floating Rate Notes 5.5

2,075,000 New Jersey Economic Development 1,764,000 EPCO Carbon Dioxide ProductsAuthority Revenue Inc., 4.47%, due 1/10/17************4.3 1,764,000(Three Woodbury), Series B 500,000 Medical Properties, Inc., 4.50%4.69%, due 1/5/31 *****************5.0 2,075,000 due 15/12/24 *********************1.2 500,000

1,515,000 Phoenix, Illinois Realty SpecialAccount Multifamily Revenue Total Floating Rate Notes (Cost $2,264,000)************5.5 2,264,000(Brightons Mark), 4.54%

Certificates of Deposit 6.0due 1/4/20 ***********************3.7 1,515,000Commercial Banks – Eastern U.S.1,995,000 Riverside County, California

2,500,000 Toronto Dominion Bank, 3.75%Industrial Development Authoritydue 11/5/06 **********************6.0 2,500,000Industrial Development Revenue

(Advance Business), Series C Total Certificates of Deposit (Cost $2,500,000)**********6.0 2,500,0004.49%, due 1/8/26 *****************4.8 1,995,000

500,000 Sacramento, California Total Investments (Cost $41,329,000)****************99.6 41,329,000Redevelopment Agency

Cash, Receivables and Other assets in excessMultifamily Revenueof liabilities ************************************0.4 151,181(18th & L Street)

4.49%, due 15/1/36 ****************1.2 500,000 Net Assets attributable to holders of redeemable1,330,000 Washington State Economic ordinary shares *******************************100.0 $41,480,181

Development Financial AuthorityEconomic Development Revenue4.49%, due 1/11/23 ****************3.2 1,330,000



Balance Sheet

Global Global Global US US US USBalanced Fundamental Equity Life Sciences Technology All Cap Growth Fundamental Equity Strategic Value Twenty

Fund Fund Fund Fund Fund Fund Fund Fund

As of As of As of As of As of As of As of As of As of As of As of As of As of As of As of As of31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December

2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004**

Assets:Financial assets at cost *******$243,768,351 $331,011,853 $14,251,315 $23,143,213 $265,081,359 $260,702,156 $64,935,341 $ 85,921,868 $155,040,495 $129,180,342 $48,544,581 $30,255,519 $274,588,188 $365,687,907 $266,166,560 $215,729,558Financial assets at fair value

through profit or loss ****** 284,639,015 382,369,371 17,084,699 27,836,806 319,406,090 311,201,963 81,610,862 103,995,716 179,618,535 154,814,111 54,937,924 36,530,463 292,339,184 397,759,347 354,377,914 304,906,678Cash and Foreign Currency 272,068 263,404 17,851 1,812 273,499 281,747 521,320 303,634 313,726 310,454 41,788 16,575 158,679 40,749 311,744 284,279Receivables:

Investments sold********** 392,862 — — — 853,410 2,942,429 224,322 813,300 14,114 75,405 285,691 362,300 592,908 2,825,510 — —Fund shares sold ********* 74,711 534,057 14 29,965 123,388 1,130,212 106,778 98,329 120,129 84,909 11,788,611 80,475 798,980 1,128,004 3,405,848 967,490Dividends *************** 115,296 163,954 21,373 14,340 42,379 53,003 3,024 7,963 40,326 51,251 19,767 23,368 170,208 207,344 68,934 47,195Interest ***************** 1,263,383 2,046,256 58 3,513 734 337 852 — 316 5,673 261 32 4,686 3,751 11,952 680

Unrealised appreciation oncurrency contracts ******** — 5,788,567 — 1,669,633 — 7,457,126 — 1,952,083 — 2,602,741 — 2,771,130 — 8,405,221 — 5,715,721

Receivable fromInvestment Manager ******* — — 7,947 — — — — — — — — — — — — —

Other debtors ************** 33,058 — 1,200 — 16,021 — 3,095 — 9,809 — 4,440 — 73,882 — 44,268 —Total Assets ****************** 286,790,393 391,165,609 17,133,142 29,556,069 320,715,521 323,066,817 82,470,253 107,171,025 180,116,955 157,944,544 67,078,482 39,784,343 294,138,527 410,369,926 358,220,660 311,922,043

Liabilities (amounts falling duewithin one year):Payables:

Investments purchased***** — 597,739 — 20,129 — — 289,355 — 12,136 — 10,163,573 — 2,036,296 10,843,521 — —Fund shares repurchased *** 471,118 1,084,399 4,361 19,120 1,046,890 1,552,573 68,216 131,557 229,205 255,756 2,396 71,785 93,008 2,900,093 232,614 1,857,515Variation margin on

futures contracts ******** — — — — — — — — — — — — — — — —Investment Management fees 240,595 331,018 — 18,870 410,658 408,783 88,953 153,497 203,457 200,714 38,147 44,058 382,776 495,354 364,204 369,282Dividends *************** — — — — — — — — — — — — — — — —Shareholder Service fees**** 352,632 533,271 33,592 47,803 591,308 567,602 115,372 165,602 293,068 265,935 63,975 65,107 394,222 481,024 425,365 425,418Distribution fees ********** 74,198 137,522 4,237 6,792 126,826 138,956 28,485 42,237 32,257 56,498 5,466 7,569 13,429 18,723 74,557 93,378Accounting, Administration

and Transfer Agent fees ** 39,881 63,107 2,825 14,332 59,081 52,755 18,485 20,593 34,056 27,916 17,213 15,195 39,602 62,295 52,756 50,815Unrealised depreciation on

forwardcurrency contracts ****** 2,157,000 — 483,511 — 2,870,449 — 573,791 — 930,101 — 872,090 — 4,130,956 — 2,364,858 —

Accrued expenses ********* 82,370 181,159 11,928 23,603 131,419 157,186 31,407 71,320 49,512 90,692 29,126 36,050 101,462 168,689 74,814 143,856Liabilities (excluding net assets

attributable to holders ofredeemable ordinary shares) 3,417,794 2,928,215 540,454 150,649 5,236,631 2,877,855 1,214,064 584,806 1,783,792 897,511 11,191,986 239,764 7,191,751 14,969,699 3,589,168 2,940,264

Net assets attributable toholders of redeemableordinary shares *********** 283,372,599 388,237,394 16,592,688 29,405,420 315,478,890 320,188,962 81,256,189 106,586,219 178,333,163 157,047,033 55,886,496 39,544,579 286,946,776 395,400,227 354,631,492 308,981,779

Total Liabilities *************** 286,790,393 391,165,609 17,133,142 29,556,069 320,715,521 323,066,817 82,470,253 107,171,025 180,116,955 157,944,544 67,078,482 39,784,343 294,138,527 410,369,926 358,220,660 311,922,043

Director Director

For Net Assets and NAV per share see Note 13.


* This Fund was terminated on the 31 May 2005 and its approval revoked by the Financial Regulator on 28 June 2005. This information for this Fund is up to the date of termination.

** Comparative financial information was prepared under accounting standards generally accepted in Ireland and were not restated to account for FRS 26 which is effective for the current periods financial statements.See Note 1 for further details.


US Risk US Flexible US Short-Term EuroUS Venture US Value Managed Core US REIT Income US High Yield Bond Reserve US Dollar Total Total

Fund Fund* Fund Fund Fund Fund Fund Fund Fund Dollar Dollar

As of As of As of As of As of As of As of As of As of As of As of As of As of As of As of As of As of As of As of As of31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December

2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004**

$73,019,154 $127,376,202 — $1,986,300 $1,910,851,419 $522,613,937 $297,918,441 $318,923,475 $901,621,738 $1,196,316,773 $942,978,861 $902,507,626 $64,072,615 $129,994,661 420,008,046 424,302,548 $41,329,000 $85,000,912 $5,587,767,935 $4,759,385,533

88,304,809 159,270,304 — 2,104,217 2,066,224,225 570,286,596 331,889,498 354,244,970 894,878,172 1,212,956,854 941,471,328 938,501,044 63,359,737 130,031,027 20,008,046 24,302,548 41,329,000 85,000,912 6,035,071,508 5,204,843,610346,106 316,718 — 2,719 538,490 69,087 368,453 90,404 129,134 145,595 346,036 167,803 158,583 159,448 6,276 17,757 51,717 55,053 3,856,597 2,533,617

253,689 1,016,280 — 11,371 — — 1,713,287 4,022,629 3,526,522 12,524,841 21,214,276 — — 172,550 — — — — 29,071,081 24,766,61535,063 11,979,154 — — 6,101,191 1,816,227 7,450 1,476,318 1,373 286,492 1,341,990 11,660,537 3,471 262,629 — — 411 — 23,909,408 31,534,79814,269 15,718 — 1,665 1,804,065 515,836 1,621,627 1,651,784 35,023 34,270 — — — — — — — — 3,956,291 2,787,69110,106 19 — — 15,214 7,108 95 240 8,361,315 14,427,567 19,182,734 17,484,078 586,389 1,292,601 3,467 2,179 180,670 302,522 29,622,855 35,577,339

— 2,998,587 — 47,864 — 6,284,613 — 725,306 — 13,114,397 — 15,368,356 — 5,062,052 — — — — — 79,963,397

— — — 30,028 — — — — — — — — — — — — — — 7,947 30,028— — — — 620,000 — 331,607 — 20,240 — 180,017 — 2,104 — — — — — 1,339,741 —

88,964,042 175,596,780 2,197,864 2,075,303,185 578,979,467 335,932,017 362,211,651 906,951,779 1,253,490,016 983,736,381 983,181,818 64,110,284 136,980,307 20,017,789 24,322,484 41,561,798 85,358,487 6,126,835,428 5,382,037,095

76,086 214,271 — — — — 147,837 — 3,354,041 13,457,245 4,041,943 2,472,792 — 170,000 — — — — 20,121,267 27,775,697455,247 722,454 — — 1,149,214 349,518 644,499 666,873 894,344 1,291,734 1,765,864 4,614,832 67,844 594,962 — — — — 7,124,820 16,113,171

— — — — 142,818 21,136 — — — 227,109 — — — — — — — — 142,818 248,245107,872 289,288 — — 1,744,523 355,962 362,029 372,213 944,217 1,084,315 843,503 778,549 8,708 62,589 5,364 11,538 8,975 32,628 5,754,944 5,012,804

— — — — — — — — — — — — — — — — 14,150 15,847 14,150 15,847173,232 293,494 — 3,329 1,998,663 413,615 43,127 31,214 222,457 418,171 1,107,272 1,163,577 80,367 172,765 10,456 14,314 35,222 66,165 5,942,207 5,133,548

27,884 50,032 — 813 5,898 5,265 1,077 2,917 38,536 67,484 361,917 390,178 18,962 47,177 812 1,557 11,426 22,214 826,113 1,089,871

22,542 29,293 — 11,422 177,692 84,255 40,565 58,922 86,600 194,834 126,673 147,713 7,551 26,622 1,070 2,770 1,527 11,687 728,311 875,521

1,214,765 — — — 6,403,454 — 613,991 — 2,535,625 — 6,281,365 — 904,826 — — — — — 32,336,782 —33,378 90,944 — 7,717 589,527 237,899 50,930 116,556 296,944 541,032 287,790 384,636 13,907 66,857 4,588 38,834 10,317 72,345 1,800,243 2,443,326

2,111,006 1,689,776 — 23,281 12,211,789 1,467,650 1,904,055 1,248,695 8,372,764 17,281,924 14,816,327 9,952,277 1,102,165 1,140,972 22,290 69,013 81,617 220,886 74,791,655 58,705,030

86,853,036 173,907,004 — 2,174,583 2,063,091,396 577,511,817 334,027,962 360,962,956 898,579,015 1,236,208,092 968,920,054 973,229,541 63,008,119 135,839,335 19,995,499 24,253,471 41,480,181 85,137,601 6,052,043,773 5,323,329,06588,964,042 175,596,780 — 2,197,864 2,075,303,185 578,979,467 335,932,017 362,211,651 906,951,779 1,253,490,016 983,736,381 983,181,818 64,110,284 136,980,307 20,017,789 24,322,484 41,561,798 85,358,487 6,126,835,428 5,382,037,095


Income Statement

Global Global Life Global US US Fundamental USBalanced Fundamental Equity Sciences Technology All Cap Growth Equity Strategic Value US Twenty


Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December

2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004**

Revenue:Interest income**************** $6,037,479 $8,010,893 $ 30,400 $ 61,447 $ 210,425 $ 128,231 $ 27,175 $ 63,909 $ 168,335 $ 68,187 $ 40,070 $ 21,188 $1,137,168 $ 577,453 $ 453,112 $ 255,286Dividend income ************** 2,460,557 3,283,465 364,599 396,500 1,357,275 1,525,227 611,216 970,034 882,312 1,887,668 395,208 687,802 4,676,150 2,607,065 2,550,152 2,648,505Withholding Tax on dividends and

other investment income ****** (652,755) (895,807) (55,048) (53,585) (370,021) (393,372) (140,130) (214,023) (222,142) (512,225) (103,513) (184,023) (1,373,728) (786,988) (707,507) (781,440)Other Income***************** 99,295 11,850 6,977 2,812 102,180 14,015 19,477 4,227 84,621 11,223 19,780 2,697 207,179 7,329 109,734 812Income equalisation ************ — — — — — — — — — — — — — — — —Net gain/(loss) on financial assets

and liabilities at fair valuethrough profit or loss********* 9,730,666 28,468,712 (1,899,318) 4,678,759 24,963,436 46,527,772 4,021,040 (1,783,764) 17,400,988 8,402,637 2,110,178 6,011,256 14,463,839 52,576,670 19,765,264 51,679,980

Total Investment Income ********** 17,675,242 38,879,113 (1,552,390) 5,085,933 26,263,295 47,801,873 4,538,778 (959,617) 18,314,114 9,857,490 2,461,723 6,538,920 19,110,608 54,981,529 22,170,755 53,803,143

Expenses:Investment Management fees***** 3,232,761 4,191,791 342,072 439,427 4,615,398 4,750,696 1,249,127 2,024,533 1,912,263 2,679,470 517,218 853,495 4,932,144 3,393,229 3,428,290 4,102,228Shareholder Service fees********* 1,741,769 2,449,697 169,042 205,864 2,246,081 2,317,368 555,996 940,886 1,144,630 1,594,494 258,960 385,076 1,791,505 1,247,816 1,568,127 1,949,450Distribution fees*************** 1,150,054 1,953,717 70,051 92,837 1,504,704 1,712,651 378,266 584,818 478,834 813,185 74,511 105,664 202,059 216,798 931,061 1,214,961Accounting, Administration and

Transfer Agent fees*********** 523,215 827,356 196,476 174,261 668,060 637,530 296,307 302,935 381,645 447,548 204,611 201,704 514,051 469,020 541,581 668,527Custodian fees **************** 72,408 82,345 28,698 24,166 84,127 86,080 48,259 70,260 70,840 72,574 33,212 30,126 59,765 56,640 56,705 69,894Listing fees ******************* 39,737 49,461 20,725 10,776 34,729 33,659 26,873 21,416 33,187 28,483 26,059 13,767 36,323 23,215 36,539 38,094Audit fees ******************** 11,910 12,917 13,398 13,776 13,398 14,279 13,398 13,898 11,910 12,492 13,398 13,799 14,887 15,728 11,910 12,752Transaction fees *************** 124,901 — 25,244 — 362,416 — 101,425 — 249,589 — 38,301 — 442,021 — 111,208 —Printing expenses ************** 63,371 130,125 4,487 11,223 69,999 99,261 26,082 43,068 40,065 64,683 8,810 18,950 59,996 95,503 69,443 105,364Dividend expense for securities

sold short ****************** — — — — — — — — — — — — — — — —Insurance fees***************** — — — — — — — — — — — — — — — —Interest expense *************** — — — — — — — — — — — — — — — —Legal fees ******************** 97,766 95,711 17,036 22,338 83,117 76,999 28,357 29,819 49,056 51,216 18,220 15,616 92,588 65,049 75,704 78,961Other fees******************** 113,470 157,192 15,245 20,263 170,507 133,685 27,864 53,934 54,387 92,560 20,980 30,085 134,805 125,525 98,654 133,669

Total Expenses ****************** 7,171,362 9,950,312 902,474 1,014,931 9,852,536 9,862,208 2,751,954 4,085,567 4,426,406 5,856,705 1,214,280 1,668,282 8,280,144 5,708,523 6,929,222 8,373,900Recoupment of Expenses

Previously Reimbursed********** — 980 — — (368) 82,765 — 43,867 (10,028) 91,583 — 3,917 (17,092) 77,998 (329) 134,091Less Expense Reimbursement ****** (31,814) (70,970) (182,904) (137,143) (9,256) (59,948) (86,072) (16,877) 47,047 (2,643) (153,112) (59,618) 42,110 (78,275) (49,295) (61,914)Net Expenses after

Expense Reimbursement ******** 7,139,548 9,880,322 719,570 877,788 9,842,912 9,885,025 2,665,882 4,112,557 4,463,425 5,945,645 1,061,168 1,612,581 8,305,162 5,708,246 6,879,598 8,446,077Net Operating Profit/(Loss) ******** 10,535,694 28,998,791 (2,271,960) 4,208,145 16,420,383 37,916,848 1,872,896 (5,072,174) 13,850,689 3,911,845 1,400,555 4,926,339 10,805,446 49,273,283 15,291,157 45,357,066Finance Costs:Distributions to holders of

redeemable ordinary shares ****** — — — — — — — —Net investment income –

Class A1$ ****************** — — — — — — — — — — — — — — — —From net realised gain on

investment – Class A1$ ***** — — — — — — — — — — — — — — — —Net investment income –

Class B1$ ****************** — — — — — — — — — — — — — — — —From net realised gain on

investment – Class B1$ ***** — — — — — — — — — — — — — — — —Net investment income – Class I1$ — — — — — — — — — — — — — — — —

From net realised gain oninvestment – Class I1$ ****** — — — — — — — — — — — — — — — —

Net investment income –Class A41 ****************** — — — — — — — — — — — — — — — —

Net investment income –Class B14 ****************** — — — — — — — — — — — — — — — —

Total distributions to holders ofredeemable ordinary shares ****** — — — — — — — —

Increase/(Decrease) in net assetsattributable to holders ofredeemable ordinary sharesfrom operations *************** 10,535,694 28,998,791 (2,271,960) 4,208,145 16,420,383 37,916,848 1,872,896 (5,072,174) 13,850,689 3,911,845 1,400,555 4,926,339 10,805,446 49,273,283 15,291,157 45,357,066

Director Director

Gains and losses arise solely from continuing operations. There were no gains or losses other than those reflected above.





US Risk US Flexible US Short-Term Euro US DollarUS Venture US Value Managed Core US REIT Income US High Yield Bond Reserve Reserve Total Total


Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December

2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004**

$ 29,248 $ 49,183 $ 4,535 $ 4,786 $ 1,159,984 $ 194,757 $ 571,963 $ 173,507 $ 50,625,852 $ 63,040,012 $ 72,224,700 $ 55,101,800 $ 3,486,713 $5,502,223 4410,232 4517,681 $1,952,410 $2,243,528 $138,643,459 $136,200,048192,671 217,784 7,172 22,304 20,677,836 3,602,264 19,350,708 16,055,644 626,496 405,646 613,127 408,124 — — — — — — 54,765,479 34,718,032

(57,040) (62,160) (2,118) (5,879) (6,171,438) (1,061,659) (6,059,896) (4,823,768) (187,949) (161,294) (131,308) (122,436) (11,700) (11,701) — — — — (16,246,293) (10,070,360)33,960 615 — — 1,132,760 — 669,085 662,931 39,827 — 354,227 — 4,141 — — — — — 2,883,243 718,511

— — — — — — (60,554) 749,438 (363,267) (196,429) 384,840 343,920 (11,965) (21,744) — — — — (50,946) 875,185

1,571,320 28,577,422 (115,905) 167,213 130,396,362 57,240,324 10,311,665 43,038,314 (37,694,986) 131,430 (61,567,191) 25,435,449 (6,036,255) 2,607,668 — — (943) 633 127,420,160 353,760,4751,770,159 28,782,844 (106,316) 188,424 147,195,504 59,975,686 24,782,971 55,856,066 13,045,973 63,219,365 11,878,395 81,166,857 (2,569,066) 8,076,446 410,232 517,681 1,951,467 2,244,161 307,415,102 516,201,891

1,620,877 2,639,741 10,136 30,914 11,261,593 2,199,960 4,475,411 3,347,901 10,712,189 13,465,979 9,767,583 7,529,369 646,992 1,122,531 86,661 114,001 288,652 658,624 59,114,927 53,584,844767,990 1,270,988 4,389 13,380 4,862,508 807,250 167,213 86,815 1,335,929 2,438,258 5,025,162 4,136,318 505,702 835,650 36,838 50,623 136,503 298,833 22,324,958 21,046,952397,997 769,066 861 4,098 65,489 49,215 20,304 43,055 596,322 1,125,295 4,680,133 3,413,493 378,930 704,297 14,155 17,751 177,242 317,377 11,123,515 13,144,655

337,298 376,326 53,107 102,965 1,289,344 449,508 527,766 556,804 1,254,449 2,587,060 1,538,918 1,484,564 282,076 390,461 12,516 31,738 44,548 204,195 8,668,215 9,923,90459,785 60,395 2,579 5,296 175,977 95,637 8,817 59,622 158,563 225,732 150,870 125,930 29,903 38,069 19,768 31,423 12,650 26,872 1,076,475 1,172,35029,481 20,038 1,107 1,198 39,600 17,591 26,494 13,198 81,550 127,737 71,671 76,559 36,984 27,656 9,917 10,112 21,007 22,239 573,764 538,83211,910 12,502 9,800 13,725 13,398 14,315 14,887 15,800 14,887 17,476 14,887 16,565 11,909 12,492 11,910 12,267 11,910 12,449 221,845 241,639

186,816 — — — 1,175,436 — 51,389 — 40,823 — 27,815 — 500 — — — — — 2,937,884 —21,868 53,094 2,000 10,904 284,118 126,539 65,540 87,964 189,080 425,212 184,759 287,863 17,606 52,327 1,293 10,751 12,336 39,200 1,121,085 1,665,893

— — — — — — — — — — — — — — — — — — — —— — — — — — — — — — — — — — — — — — — —— — — — — — — — — — — — — — — — — — — —

39,429 44,602 1,442 53,478 294,983 67,902 116,765 81,847 294,128 314,194 271,605 177,228 44,930 41,098 8,630 6,365 18,298 31,255 1,553,604 1,255,96550,081 89,822 7,975 7,955 565,626 146,514 145,395 130,107 433,147 530,495 406,080 314,513 33,551 69,099 5,287 6,745 13,042 43,507 2,297,046 2,088,093

3,523,532 5,336,574 93,396 243,913 20,028,072 3,974,431 5,619,981 4,423,113 15,111,067 21,257,438 22,139,483 17,562,402 1,989,083 3,293,680 206,975 291,776 736,188 1,654,551 111,013,318 104,663,127

— 183,933 — — — — — 150 (172,996) 35,844 (18,377) — — — — 2,693 (1,731) 13,063 (220,921) 671,852(45,386) (70,944) (61,562) (186,251) (88,311) (539,271) (67,467) (305,547) 372,997 (693,362) (41,683) (181,483) (255,954) (304,731) (32,484) (61,948) (154,014) (372,740) (802,993) (3,225,920)

3,478,146 5,449,563 31,834 57,662 19,939,761 3,435,160 5,552,514 4,117,716 15,311,068 20,599,920 22,079,423 17,380,919 1,733,129 2,988,949 174,491 232,521 580,443 1,294,874 109,989,404 102,109,058(1,707,987) 23,333,281 (138,150) 130,762 127,255,743 56,540,526 19,230,457 51,738,350 (2,265,095) 42,619,445 (10,201,028) 63,785,938 (4,302,195) 5,087,497 235,741 285,160 1,371,024 949,287 197,425,698 414,092,833

— — — — — — — — — — — — — — — — — — — —

— — — — — — (9,710) (14,007) (240,074) (396,277) (4,500,910) (3,429,706) (161,980) (156,117) — — (9,027) (2,824) (4,921,701) (3,998,931)

— — — — — — (6,056) (1,865) — — — — — — — — — — (6,056) (1,865)

— — — — — — (23,460) (53,713) (534,387) (959,950) (15,622,581) (10,636,976) (257,555) (336,475) — — (294,664) (129,066) (16,732,647) (12,116,180)

— — — — — — (14,633) (7,152) — — — — — — — — — — (14,633) (7,153)— — — — — — (7,950,637) (7,708,949) (31,382,389) (35,276,266) (18,472,662) (11,627,777) (1,019) (180,866) — — (149,978) (355,376) (57,956,685) (55,149,234)

— — — — — — (4,959,080) (1,026,573) — (101) — — — — — — — — (4,959,080) (1,026,572)

— — — — — — — — — — — — — — — — — — — (101)

— — — — — — — — (6,773) (3,435) (1,965,167) (663,095) — — — — — — (1,971,940) (666,530)

— — — — — — (12,963,576) (8,812,259) (32,163,623) (36,636,029) (40,561,320) (26,357,554) (420,554) (673,458) — — (453,669) (487,266) (86,562,742) (72,966,566)

(1,707,987) 23,333,281 (138,150) 130,762 127,255,743 56,540,526 6,266,881 42,926,091 (34,428,718) 5,983,416 (50,762,348) 37,428,384 (4,722,749) 4,414,039 235,741 285,160 917,355 462,021 110,862,956 341,126,267


Statements of Changes in Net Assets Attributable toHolders of Redeemable Ordinary Shares

Global Global Life Global US US Fundamental USBalanced Fundamental Equity Sciences Technology All Cap Growth Equity Strategic Value US Twenty


Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December

2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004**

Increase/(Decrease) innet assets attributableto holders ofredeemable ordinaryshares fromoperations**********$ 10,535,694 $ 28,998,791 (2,271,960) $ 4,208,145 $ 16,420,383 $ 37,916,848 $ 1,872,896 (5,072,174) $ 13,850,689 $ 3,911,845 $ 1,400,555 $ 4,926,339 $ 10,805,446 $ 49,273,283 $ 15,291,157 $ 45,357,066

Capital ShareTransactions ofredeemable ordinaryshares:

Proceeds fromredeemable ordinaryshares sold ********* 87,201,016 80,811,147 16,455,410 37,382,327 223,057,433 191,116,472 16,787,265 49,780,238 116,241,264 90,562,191 43,378,041 36,812,802 224,933,490 416,018,913 231,706,786 128,402,642Reinvested dividends — — — — — — — — — — — — — — — —

Redemption ofredeemableordinary shares****** (202,601,505) (182,476,833) (26,996,182) (32,834,326) (244,187,888) (178,815,600) (43,990,191) (131,337,506) (108,805,823) (222,123,941) (28,436,679) (81,102,750) (344,192,387) (173,282,265) (201,348,230) (238,842,382)

Net Increase/(Decrease)from Capital ShareTransactions ofredeemable ordinaryshares ************* (115,400,489) (101,665,686) (10,540,772) 4,548,001 (21,130,455) 12,300,872 (27,202,926) (81,557,268) 7,435,441 (131,561,750) 14,941,362 (44,289,948) (119,258,897) 242,736,648 30,358,556 (110,439,740)

Net Increase/(Decrease)in Net Assetsattributable to holdersof redeemableordinary shares****** (104,864,795) (72,666,895) (12,812,732) 8,756,146 (4,710,072) 50,217,720 (25,330,030) (86,629,442) 21,286,130 (127,649,905) 16,341,917 (39,363,609) (108,453,451) 292,009,931 45,649,713 (65,082,674)Net Assets attributable

to holders ofredeemable ordinaryshares at 1 January 388,237,394 460,904,289 29,405,420 20,649,274 320,188,962 269,971,242 106,586,219 193,215,661 157,047,033 284,696,938 39,544,579 78,908,188 395,400,227 103,390,296 308,981,779 374,064,453

Notional FXgain/(loss) ******** — — — — — — — — — — — — — — — —

Net assets attributableto holders ofredeemable ordinaryshares at31 December *****$ 283,372,599 $ 388,237,394 $ 16,592,688 $ 29,405,420 $ 315,478,890 $ 320,188,962 $ 81,256,189 $ 106,586,219 $ 178,333,163 $ 157,047,033 $ 55,886,496 $ 39,544,579 $ 286,946,776 $ 395,400,227 $ 354,631,492 $ 308,981,779

Transactions inFund ShareTransactions ofredeemable ordinaryshares:Redeemable ordinary

shares sold ******* 5,428,598 6,263,303 1,018,626 2,627,055 22,159,170 20,780,407 4,638,378 13,076,130 10,982,159 9,034,787 2,979,666 2,956,932 18,309,971 37,087,064 20,949,210 13,612,497Reinvested dividends — — — — — — — — — — — — — — — —Redeemable ordinary

preferenceshares repurchased (15,115,869) (15,147,928) (1,711,211) (2,376,577) (24,942,338) (19,808,259) (13,733,894) (39,303,636) (10,564,880) (22,281,903) (2,117,710) (6,866,226) (27,937,728) (15,542,899) (19,311,633) (24,713,320)

Net Increase/(Decrease)in redeemableordinary Fund Shares (9,687,271) (8,884,625) (692,585) 250,478 (2,783,168) 972,148 (9,095,516) (26,227,506) 417,279 (13,247,116) 861,956 (3,909,294) (9,627,757) 21,544,165 1,637,577 (11,100,823)

Shares Outstanding,Beginning of Year **** 29,632,621 38,517,246 1,781,602 1,531,124 33,543,144 32,570,996 31,992,196 58,219,702 15,633,002 28,880,118 2,919,254 6,828,548 31,629,744 10,085,579 29,944,122 41,044,945

Shares Outstanding, Endof Year************* 19,945,350 29,632,621 1,089,017 1,781,602 30,759,976 33,543,144 22,896,680 31,992,196 16,050,281 15,633,002 3,781,210 2,919,254 22,001,987 31,629,744 31,581,699 29,944,122

Director Director

Gains and losses arise solely from continuing operations. There were no gains or losses other than those reflected above.





US Risk US Flexible US Short-Term Euro US DollarUS Venture US Value Managed Core US REIT Income US High Yield Bond Reserve Reserve Total Total


Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December 31 December

2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004** 2005 2004**

(1,707,987)$ 23,333,281 (138,150) $ 130,762 $ 127,255,743 $ 56,540,526 $ 6,266,881 $ 42,926,091 (34,428,718)$ 5,983,416 (50,762,348)$ 37,428,384 (4,722,749)$ 4,414,039 4 235,741 4 285,160 $ 917,355 $ 462,021 $ 110,862,956 $ 341,126,267

65,974,426 165,890,302 — — 1,977,161,630 559,007,562 57,776,444 238,050,059 61,955,590 157,011,775 491,786,446 632,498,153 48,360,653 120,305,423 27,745,069 51,110,063 127,176,245 439,985,434 3,822,678,871 3,413,106,778— — — — — — 12,432 14,604 31,540,168 35,580,697 18,783,840 11,695,889 181,472 432,370 — — 200,263 263,514 50,718,175 47,987,074

(151,320,407) (200,990,339) (2,036,433) — (618,837,794) (87,331,524) (90,990,751) (26,624,201) (396,696,117) (471,882,628) (464,117,425) (446,463,892) (116,650,592) (174,347,891) (32,238,782) (80,281,205) (171,951,283) (517,933,085) (3,251,186,984) (3,275,511,366)

(85,345,981) (35,100,037) (2,036,433) — 1,358,323,836 471,676,038 (33,201,875) 211,440,462 (303,200,359) (279,290,156) 46,452,861 197,730,150 (68,108,467) (53,610,098) (4,493,713) (29,171,142) (44,574,775) (77,684,137) 622,210,062 185,582,485

(87,053,968) (11,766,756) (2,174,583) 130,762 1,485,579,579 528,216,564 (26,934,994) 254,366,553 (337,629,077) (273,306,740) (4,309,487) 235,158,534 (72,831,216) (49,196,059) (4,257,972) (28,885,982) (43,657,420) (77,222,116) 733,073,018 526,708,752

173,907,004 185,673,760 2,174,583 2,043,821 577,511,817 49,295,253 360,962,956 106,596,403 1,236,208,092 1,509,514,832 973,229,541 738,071,007 135,839,335 185,035,394 24,253,471 53,139,453 85,137,601 162,359,717 5,323,329,065 4,790,957,964

— — — — — — — — — — — — — — — — — — (4,358,310) 5,662,349

$ 86,853,036 $ 173,907,004 — $2,174,583 $2,063,091,396 $577,511,817 $ 334,027,962 $360,962,956 $ 898,579,015 $1,236,208,092 $ 968,920,054 $ 973,229,541 $ 63,008,119 $ 135,839,335 4 19,995,499 4 24,253,471 $ 41,480,181 $ 85,137,601 $ 6,052,043,773 $ 5,323,329,065

6,922,432 20,370,621 — — 127,642,632 39,727,375 4,668,775 21,797,409 4,334,732 11,574,708 44,991,484 57,037,744 3,215,238 9,143,965 255,071 475,295 104,435,340 314,034,109 382,931,482 579,599,401— — — — — — 1,050 1,342 3,055,616 3,409,445 1,944,478 1,207,411 17,707 41,651 — — 200,263 263,514 5,219,114 4,923,363

(17,265,630) (25,473,584) (192,263) — (37,975,345) (6,118,747) (7,373,812) (2,342,664) (34,064,147) (37,371,315) (39,057,435) (38,278,321) (8,710,149) (13,642,465) (296,911) (746,896) (118,500,633) (363,404,373) (378,871,588) (633,419,113)

(10,343,198) (5,102,963) (192,263) — 89,667,287 33,608,628 (2,703,987) 19,456,087 (26,673,799) (22,387,162) 7,878,527 19,966,834 (5,477,204) (4,456,849) (41,840) (271,601) (13,865,030) (49,106,750) 9,279,008 (48,896,349)

19,626,654 24,729,617 192,263 192,263 37,300,484 3,691,856 29,496,390 10,040,303 110,730,270 133,117,432 85,892,788 65,925,954 10,392,257 14,849,106 225,637 497,238 23,366,463 72,473,213 494,298,891 543,195,240

9,283,456 19,626,654 — 192,263 126,967,771 37,300,484 26,792,403 29,496,390 84,056,471 110,730,270 93,771,315 85,892,788 4,915,053 10,392,257 183,797 225,637 9,501,433 23,366,463 $ 503,577,899 494,298,891


Notes to the Financial Statements

1. ACCOUNTING POLICIES All changes in the accounting policies have been made in accor-dance with the transition provisions in the respective standards.

The significant accounting policies and estimation techniquesadopted by the Company are as follows: There was no impact on opening net assets at 1 January 2005, as

a result of the adoption of any of the above mentioned stan-BASIS OF PRESENTATION OF FINANCIAL STATEMENTS dards. All references to net assets throughout this documentThe financial statements are prepared in accordance with refer to net assets attributable to holders of redeemable ordinaryaccounting standards generally accepted in Ireland and Irish shares unless otherwise stated.Statute comprising the Companies Acts, 1963 to 2005 and the

The format and certain wordings of the financial statements haveUCITS Regulations. Accounting standards generally accepted inbeen adapted from those contained in the Companies (Amend-Ireland in preparing financial statements giving a true and fairment) Act, 1986 and FRS 3 ‘‘Reporting Financial Performance’’view are those published by the Institute of Chartered Account-so that, in the opinion of the Directors, they more appropriatelyants in Ireland and issued by the Accounting Standards Board.reflect the nature of the Company’s business as an investment

The Company adopted the following new accounting standards fund. The Company has availed of the exemption available towhich were issued during 2004 and which apply to listed enti- open-ended investment funds under FRS 1 not to prepare a cashties for accounting periods commencing on or after flow statement.1 January 2005:

HISTORICAL COST CONVENTIONFRS 20 Share-Based Payments

The financial statements are prepared under the historical costFRS 21 Events after the Balance Sheet date convention as modified to include financial assets held at fair

value through profit or loss.FRS 22 Earnings per Share

INVESTMENT VALUATIONFRS 23 The Effects of Change in Foreign Exchange RatesFinancial assets held at fair value through profit or loss are val-

FRS 24 Financial reporting in Hyperinflationary Economies ued at bid market price in the financial statements. Gains andlosses arising from changes in their fair value are included in theFRS 25 Financial Instruments: Disclosure and PresentationIncome Statement in the period in which they arise.

FRS 26 Financial Instruments: MeasurementAll the Company’s assets and liabilities are held for the purpose

FRS 28 Corresponding Amounts. of being traded.

FRS 20, FRS 21, FRS 22 and FRS 24 had no material effect onListed Securities

the Company’s policies.Securities listed on a recognised stock exchange or traded on

In accordance with FRS 23, the Effects of Changes in Foreign any other organised market are valued at the last quoted bidCurrency Rates, the functional and reporting currency of the price as at the close of the regular trading session of theCompany has been determined to be US dollars (‘‘USD’’). New York Stock Exchange (‘‘NYSE’’) on the relevant Business

Day (normally 4:00 p.m., New York time, Monday through Fri-FRS 25, Financial Instruments: Disclosure and Presentation, has

day) or, if unavailable or, in the opinion of the Administratoraffected the presentation of redeemable ordinary shares, which

unrepresentative of fair value, the last available bid price on theare now classified as a financial liability, rather than equity.

principal exchange. This is a departure from prior years and theFRS 25 requires that distributions paid to holders of redeemable

Prospectus, where the last quoted trade price or, if unavailableordinary shares are now classified as Finance Costs in the

or, in the opinion of the Administrator unrepresentative of fairIncome Statement, rather than in the Statement of Changes in

market value, the mid price was used. If for specific assets theNet Assets Attributable to Holders of Redeemable Ordinary

latest available prices do not, in the opinion of the Administra-Shares. Transaction costs are now disclosed as expenses in the

tor, reflect their fair value or if prices are unavailable, the valueIncome Statement. This is a change from the previous treatment

shall be calculated by the Administrator in consultation with thein the prior year whereby they were included in realised and

Investment Adviser or the relevant Sub-Investment Adviser onunrealised gains and losses.

the basis of the probable realisation value for such assets as atFRS 26, Financial Instruments: Measurement, has affected the the close of the regular trading session of the NYSE on the rele-categories of financial assets and financial liabilities for recogni- vant Business Day. The Administrator may use a systematic fairtion and measurement purposes. The Company has redesignat- valuation model provided by an independent third party toed its financial instruments as financial assets at fair value value equity securities and/or fixed income securities in order tothrough profit or loss. adjust for stale pricing which may occur between the close of

foreign exchanges and the relevant Valuation Point.FRS 28 now requires that comparative information is disclosedfor all primary statements in the financial statements.



Cash and Other Liquid Assets chase agreements and to value the securities on a daily basis toCash and other liquid assets will be valued at their fair value protect the Company in the event the securities are not repur-with interest accrued, where applicable, at the close of the regu- chased by the counterparty. The Company will generally obtainlar trading session of the New York Stock Exchange (‘‘NYSE’’) on additional collateral if the market value of the underlying securi-the relevant Business Day (normally 4:00 p.m., New York time, ties is less than the face value of the purchase agreement plusMonday through Friday). any accrued interest. In the event of default on the obligation to

repurchase, the Company has the right to liquidate the collateralCollective Investment Schemes and apply the proceeds in satisfaction of the obligation. In theUnits or shares in collective investment schemes will be valued event of default or bankruptcy by the counterparty to the agree-at the bid quotation or if unavailable the latest available net asset ment, realisation and/or retention of the collateral or proceedsvalue or, if listed or traded on a Regulated Market, at the latest may be subject to legal proceedings.quoted trade price or a mid-quotation or, if unavailable orunrepresentative, the latest available net asset value as deemed FUTURES CONTRACTS ON SECURITIES

relevant to the collective investment scheme. This is a departure For open future contracts, changes in the fair value of the con-from prior years and the Prospectus where the bid quotation is tract are recognised as unrealised gains or losses by ‘‘marking-to-not used and, in the first instance, the latest available net asset market’’ the value of the contract at the Balance Sheet date.value is used. When the contract is closed, the difference between the pro-

ceeds from (or cost of) the closing transactions and the originalExchange Traded Derivative Instruments transaction is recorded as a realised gain or loss. Future con-Exchange traded derivative instruments will be valued at the tracts are held at fair value through profit or loss. Gains andclose of the regular trading session of the NYSE on the relevant losses arising from changes in the fair value of the futures con-Business Day at the settlement price for such instruments on tracts are included in the Income Statement in the period whichsuch market. If the settlement price of an exchange traded deriv- they arise.ative instrument is not available, the value of such instrumentshall be the probable realisation value estimated with care and in INVESTMENT TRANSACTIONS AND INVESTMENT INCOME

good faith by the Administrator or other competent person Investment transactions are accounted for as of the date pur-approved for the purpose by the Custodian. All derivatives are chased or sold. Gains and losses arising from changes in the faircarried as assets when the fair value is positive, and as a liability value of the financial assets at fair value through profit or losswhen the fair value is negative. are included in the Income Statement in the period which they

arise. Investment transactions are calculated using the first inShort-Term Investments first out method.Amortised cost calculated using the effective yield method,

Dividends are credited to the Income Statement on the dates onwhich approximates fair value, is used to value discounted debtwhich the relevant securities are listed as ‘‘ex-dividend.’’ Interestobligations with 60 days or less remaining to maturity, unlessincome is accrued on a daily basis. Income is shown gross ofthe Company’s Directors determine that this does not representnon-recoverable withholding tax.fair value. All other short-term investments, including time

deposits, are valued at cost, which approximates their fair value.TRANSACTION COSTS

The assets of Euro Reserve Fund and US Dollar Reserve FundTransaction costs include fees and commissions paid to agents

are valued on the basis of amortised cost, calculated on effective(including employees acting as selling agents), advisers, brokers

interest basis, by allocating the interest income or interestand dealers, levies by regulatory agencies and securities

expense over a relevant period using the effective interest rate.exchanges, and transfer taxes and duties. Transaction costs do

This rate exactly discounts estimated future cash payments ornot include debt premiums or discounts, financing costs or

receipts throughout the expected life of the financial instrument,internal administrative costs.

or a shorter period where appropriate, to the net carryingamount of the financial asset or financial liability. When calcu- DISTRIBUTIONS PAYABLE TO HOLDERS OF REDEEMABLElating the effective interest rate, the Company estimates cash ORDINARY SHARESflows considering all contractual terms of the financial instru- Distributions paid to holders of redeemable ordinary shares arement but does not consider future credit losses. classified as finance costs in the Income Statement. The A1$,

B1$, B14, I1$ and I14 Share Classes of the US Flexible IncomeREPURCHASE AGREEMENTS

and US High Yield Funds and A1$, B1$ and I1$ Share Classes ofSecurities purchased under agreements to resell are valued at

the US Short-Term Bond Fund intend to declare and distributeamortised cost and adjusted for any movements in foreign

dividends monthly, which are comprised of net investmentexchange rates. Interest rates vary for each repurchase agreement

income, and from 14 November 2005, may in addition periodi-and are set at the initiation of the agreement. It is the Compa-

cally declare net realised capital gains (less realised and unreal-ny’s policy to take custody of securities purchased under repur-

ised losses), (excluding net unrealised capital gains which shall



be retained and reflected in the net asset value of each such ments are in USD, with the exception of Euro Reserve FundShare Class). The A1$, B1$ and I1$ Share Classes of the US which is in Euro (the ‘‘presentational currency’’).REIT Fund intend to distribute dividends quarterly, which are

Transactions and Balancescomprised of net investment income. Any net capital gains real-

Assets and liabilities denominated in currencies other than theised by the US REIT Fund on sales of portfolio securities are

functional currency are translated into the functional currency atdeclared and distributed periodically. Class A1$, B1$ and I1$

the exchange rates ruling at the Balance Sheet date. TransactionsShares of US Dollar Reserve Fund declare dividends daily com-

in currencies other than the functional currency are translatedprised of net investment income, and distribute such dividends

into the functional currency at the exchange rates ruling at themonthly. Any net capital gains realised (less realised and unreal-

dates of the transactions. Gains and losses on foreign exchangeised losses) on sales of portfolio securities are declared and dis-

transactions are recognised in the Income Statement in deter-tributed periodically.

mining the result for the period.During the distribution period, in the days prior to the day that

FOREIGN CURRENCY CONTRACTSthe distributions are declared, the undistributed net investment

The Company may, without limitation, enter into three types ofincome and undistributed net realised capital gains will be

forward currency contracts: Euro Class level hedging, foreignretained and reflected in the net asset value of each such Share

security hedging and security transaction level hedging.Class of the US Flexible Income, US High Yield, US Short-TermBond and US REIT Funds. Distributions made by such Share The unrealised appreciation or depreciation on open forwardClasses will include an amount of income equalisation. This exchange contracts is calculated by reference to the differenceamount corresponds to the equalisation income included in the between the contracted rate and the rate to close out the con-net asset value per Share of such Share Class. tract. Realised gains or losses include net gains on contracts,

which have been settled or offset by other contracts. For foreignNet investment income and net realised capital gains attributable

security hedges and security transaction level hedges, realisedto Class A2$, B2$ and C2$* Shares of US REIT Fund, US Flexi-

and unrealised gains and losses are allocated at Fund level. Forble Income, US High Yield, US Short-Term Bond, Euro Reserve,

Euro Class level hedges the realised and unrealised gains andUS Dollar Reserve and Class I24 Shares of US Flexible Income,

losses are allocated solely to the relevant Euro Share Classes.US High Yield, US Short-Term Bond and Euro Reserve Funds

While the Company will attempt to hedge against currencyare not paid as dividends but retained and reflected in the net

exposure in the Euro Classes, there can be no guarantee that theasset value per share of each such Share Class. Balanced, Global

value of the Euro Classes will not be affected by the value of theFundamental Equity, Global Life Sciences, Global Technology,

Euro relative to the US dollar.US All Cap Growth, US Fundamental Equity, US Strategic Value,US Twenty, US Venture, US Value** and US Risk Managed Core 2. SHARE CAPITAL

Funds do not distribute net investment income or net realised orAUTHORISED

unrealised net capital gains.The paid up share capital of the Company shall at all times equal

INCOME EQUALISATION the combined net asset value of the Funds. The Directors areClass A1, B1 and I1 Shares of the US REIT, US Flexible Income, authorised to issue up to 500 billion shares of no par value each.US High Yield and US Short-Term Bond Funds follow the For accounting purposes, these are deemed to be either sub-accounting practice known as ‘‘income equalisation’’ by which a scriber shares or redeemable ordinary shares.portion of the issue and redemption price of the Fund’s shares,

SUBSCRIBER SHARESrepresenting accumulated distributable profit on the date of the

There are currently 30,000 Subscriber Shares in issue of no parshare transaction, is credited or charged respectively to distrib-

value, held by four Subscriber Shareholders. The Subscriberutable profit.

Shares do not form part of the net asset value of the CompanyFOREIGN EXCHANGE TRANSLATION and are thus not disclosed in the financial statements except by

way of this note only.Functional and Presentation CurrencyItems included in the Company’s financial statements are mea- REDEEMABLE ORDINARY SHARES

sured using the currency of the primary economic environment Redeemable ordinary shares (‘‘ordinary shares’’) are redeemablein which the Company operates (the ‘‘functional currency’’), at the shareholder’s option and are classified as financial liabili-which is US dollar. All amounts disclosed in the financial state- ties. The distribution on these ordinary shares is recognised in

the Income Statement as finance costs.

* This Class closed for new subscriptions on 15 July 2005, and was fully redeemed on 31 Octo-ber 2005 and is no longer offered by the Company.

** This Fund was terminated on 31 May 2005 and its approval revoked by the Financial Regula-tor on 28 June 2005. The information for this Fund is up to the date of termination.



3. RELATED PARTY TRANSACTIONS INVESTMENT MANAGEMENT FEES

The Investment Adviser was entitled to receive an investmentJanus International Limited (‘‘JIL’’) acts as Investment Adviser

management fee from each Fund for the period 1 January 2005and Distributor to the Company. JIL is a company incorporated

to 31 December 2005, calculated daily and paid monthly inunder the laws of England and Wales, authorised and regulated

arrears, as set out in the following schedule:by the Financial Services Authority (‘‘FSA’’).

Annual PercentageJIL has appointed Janus Capital Management LLC (‘‘Janus’’) as Funds (per Class)*Sub-Investment Adviser with responsibility for investing and

Balanced Fund 1.00managing the cash and other assets of the Fundamental Equi-Global Fundamental Equity Fund 1.50

ty & Balanced Funds (except for the US Strategic Value Fund), Global Life Sciences Fund 1.50the Property Securities Funds, the Fixed Income Funds and the Global Technology Fund 1.50Currency Reserve Funds on a discretionary basis and for provid- US All Cap Growth Fund 1.25

US Fundamental Equity Fund 1.50ing related advisory and administrative services. Janus is a limit-US Strategic Value Fund 1.50ed liability company organised under the laws of the state ofUS Twenty Fund 1.25

Delaware and is registered as an investment adviser with the US Venture Fund 1.50US Securities and Exchange Commission. Janus which indirectly US Value Fund** 1.50owns JIL is owned by Janus Capital Group Inc. US Risk Managed Core Fund 1.00

US REIT Fund 1.25JIL has also appointed Enhanced Investment Technologies LLC US Flexible Income Fund 1.00as Sub-Investment Adviser with responsibility for investing and US High Yield Fund 1.00

US Short-Term Bond Fund 0.65managing the cash and other assets of the Risk Managed EquityEuro Reserve Fund*** 0.50Funds on a discretionary basis and for providing related adviso-US Dollar Reserve Fund*** 0.50

ry and administrative services. Enhanced Investment Technolo-* Calculated as a percentage of the Fund’s average daily net asset valuegies LLC is a limited liability company organised under the laws

attributable to the relevant Class.of the state of Delaware and is registered as an investment advis-er with the US Securities and Exchange Commission. From Jan- ** This Fund was terminated on 31 May 2005 and its approval revoked by

the Financial Regulator on 28 June 2005. The information for thisuary 2006, 81.5% of the outstanding voting shares of EnhancedFund is up to the date of termination.Investment Technologies LLC are ultimately owned by Janus

Capital Group Inc. *** JIL charges an investment management fee of 0.25% per annum forClass I Shares of Euro Reserve Fund and US Dollar Reserve Fund.

JIL has also appointed Perkins, Wolf, McDonnell and Company,LLC (‘‘PWM’’) as a Sub-Investment Adviser with responsibility SHAREHOLDER SERVICE FEES

for investing and managing the cash and other assets of the A shareholder service fee with respect to Class A and Class BUS Strategic Value Fund on a discretionary basis and for provid- Shares is payable to the Distributor out of the assets of eaching related advisory and administrative services. PWM is a limit- Fund at the rate of 0.75% per annum (0.50% for US Risk Man-ed liability company organised under the laws of the state of aged Core and US Short-Term Bond Funds and 0.25% for EuroDelaware and is registered as an investment adviser with the Reserve and US Dollar Reserve Funds) of the Fund’s average dai-US Securities and Exchange Commission. Janus owns 30% of ly net asset value attributable to each such Class. A shareholderPWM. service fee was also payable with respect to Class C Shares out of

the assets of each Fund at the rate of up to 1.00% per annum ofDominic Martellaro is an officer of Janus. Jill Paitchel was anthe Fund’s average daily net asset value attributable to each suchofficer of Janus prior to her resignation on 31 January 2005.Class.Neither Mr Martellaro nor Ms Paitchel receive or received Direc-

tors’ fees from the Company. Carl O’Sullivan is a partner in the DISTRIBUTION FEESfirm of Arthur Cox who act as legal advisers to the Company. A distribution fee with respect to Class B Shares is payable to theDuring the period Arthur Cox invoiced fees of 4184,430 for ser- Distributor out of the assets of each Fund at the rate of up tovices to the Company, all of which have been paid. 1.00% per annum of the Fund’s average daily net asset value

attributable to each such Class. To date this has been limited toAll transactions with related parties, Directors of the Companya maximum of 0.80% on US Short-Term Bond Fund and 0.70%or any party in which they have a material interest are enteredon Euro Reserve and US Dollar Reserve Funds.into in the ordinary course of business and on normal commer-

cial terms.FUND EXPENSE LIMITS

The Investment Adviser has agreed to waive all or a portion ofits investment management fees to the extent necessary toensure that the total fees and out-of-pocket expenses, excluding



transaction costs and trade commissions, of each Class do not 5. CASH AT BANK

exceed the Expense Limits which are set out in the ‘‘Fees andAll cash balances were held under the control of Brown Brothers

Expenses’’ section of the Company’s Prospectus and are also setHarriman Trustee Services (Ireland) Ltd. for the period ended

out on page 4 in the Fund Expense Limits and Total Expense31 December 2005.

Ratios (‘‘Expense Limits’’).

6. OTHER INCOMEThe Prospectus provides that where the total fees (including allfees of the Administrator, the Custodian and any Company rep- Included in other income are amounts relating to a commissionresentative in any jurisdiction) and out-of-pocket expenses, recapture program and a payment from the Custodian.excluding transaction costs and trade commissions, allocated to

The Company has entered into a commission recapture programa Fund in any fiscal year exceed the Expense Limits set out inenabling the Company to benefit from brokerage discounts. Onthe Prospectus, the amount of such excess may be carried for-28 February 2005, the commission recapture agreement withward to succeeding fiscal years provided that such carry forwardthe Custodian was terminated. Income from the Custodianwill be subject to the Expense Limits applicable to the relevantcommission recapture program amounted to $6,913. Onfiscal year. The resulting contingent liability has not been dis-1 March 2005, the Company entered into a commission recap-closed, as it cannot be calculated with any reasonable accuracy.ture agreement with Frank Russell Securities, Inc. Income fromThis provision does not apply to the US Value Fund**, US Riskthe Frank Russell Securities, Inc. commission recapture pro-Managed Core Fund, US REIT Fund and any further Funds thatgram for the period ended 31 December 2005 amounted toare established by the Company in the future; any fees and$312,802.expenses incurred by these Funds in excess of the Expense Lim-

its, may not be carried forward to succeeding fiscal years and JIL On 20 September 2004, the Custodian paid an amount ofwill waive such portion of its investment management fee in $662,931 to the Internal Revenue Service of the USA (the ‘‘IRS’’)respect of such Funds to the extent necessary to ensure that the on behalf of the US REIT Fund, which was fully refunded to thetotal expense limits for those Funds are not exceeded. Custodian in 2005. This payment related to an estimated with-

holding tax liability for the US REIT Fund for the tax years 20034. TAXATION

and 2004. Upon filing of the annual tax return for the US REITThe Company qualifies as an investment undertaking as defined Fund with the IRS, the Company received a refund from the IRSin Section 739B of the Taxes Consolidation Act, 1997 (as of $404,708. An additional accrual of $258,223 was providedamended). It is not chargeable to Irish tax on its income and for by the Fund and is included in Withholding Tax in thegains. Income Statement.

Tax may arise on the happening of a chargeable event. A charge- 7. SECURITIES LENDINGable event includes any distribution payments to shareholders

In September 2005, the Company entered into a securities lend-or any encashment, redemption or transfer of Shares. No tax willing agency agreement between Old Mutual (US) Trust Companyarise on the Company in respect of chargeable events in respect(‘‘Lending Agent’’), the Custodian and the Investment Adviser.of:

The securities lending program commenced in November 2005.(i) a shareholder who is not Irish resident and not ordina-Included in other income is income earned as a result of thisrily resident in Ireland at the time of the chargeableprogram of US$652,517. As at 31 December 2005, the aggregateevent, provided the necessary signed statutory declara-value of securities on loan from the Company and the value oftions are held by the Company; andcollateral held by the Company in respect of these securities are

(ii) certain exempted Irish resident investors who have pro- detailed below.vided the Company with the necessary signed statutorydeclarations.

Dividend income and interest received by the Company may besubject to non-recoverable withholding tax in the countries oforigin.

** This Fund was terminated on 31 May 2005 and its approval revoked by the Financial Regula-tor on 28 June 2005. The information for this fund is up to the date of termination.



Value of The following exchange rates at 31 December 2005 have beenSecurities on Value ofLoan Collateral used to translate assets and liabilities in currencies other than

US dollar:Balanced Fund $ 60,951,198 $ 62,256,095Global Fundamental Equity Fund 1,773,692 1,809,168 CAD 1.1682Global Life Sciences Fund 12,279,984 12,525,920 CHF 1.3180Global Technology Fund 3,022,975 3,090,985

DKK 6.3235US All Cap Growth Fund 13,409,279 13,678,141US Fundamental Equity Fund 7,722,425 7,889,002 EUR 0.8478US Strategic Value Fund 21,582,784 22,014,889 GBP 0.5825US Twenty Fund 25,613,807 26,126,641 HKD 7.7536US Venture Fund 5,369,502 5,821,600

INR 45.010US Risk Managed Core Fund 299,883,698 305,874,537JPY 118.03US REIT Fund 139,310,832 142,098,250

US Flexible Income Fund 179,106,160 182,721,535 KRW 1010.89US High Yield Fund 80,906,309 82,992,900 SEK 7.9586US Short-Term Bond Fund 26,225,000 26,747,008 TWD 32.843Total $877,157,645 $895,646,671

12. DERIVATIVES AND OTHER FINANCIAL INSTRUMENTS

8. SOFT COMMISSION ARRANGEMENTS In pursuing their investment objectives set out in the Prospec-tus, the Funds hold a number of financial instruments, theseDuring the year there were no soft commission transactions incomprise:the Funds.

) Equity and non-equity shares, fixed income securities, and9. CROSS LIABILITYfloating rate securities. These are held in accordance with the

The assets of each Fund may be exposed to the liabilities of oth- Company’s investment objectives and policies;er Funds within the Company. At 31 December 2005, the

) Cash, liquid resources and short-term debtors and creditorsDirectors are not aware of any such existing or contingentthat arise directly from operations;liability.

) Redeemable ordinary shares which represent investors’ mon-10. EFFICIENT PORTFOLIO MANAGEMENT ies which are invested on their behalf;The Company may, for the purposes of efficient portfolio man- andagement and hedging of currency risks, enter into futures con-

) Derivative transactions which the Company also enters intotracts or write call options and purchase put options on(principally futures contracts and forward foreign currencycurrencies provided that these transactions may only concerncontracts), the purpose of which is to manage the currencycontracts which are traded on a regulated market operating reg-and market risks arising from the Company’s investmentularly, being organised and open to the public. The Companyactivities.may also enter into forward purchases or sales of currencies or

exchange currencies on the basis of ‘‘over the counter’’ arrange- The main risks arising from the Company’s financial instru-ments with highly rated financial institutions specialising in this ments are market price, foreign currency, interest rate, liquiditytype of transaction. During the period, the Company entered and credit risk. Full details of these risks are available in the Pro-into futures contracts and forward currency transactions for the spectus under the heading ‘‘Risk Factors and Specialpurpose of hedging currency risk on investment and cash hold- Considerations.’’ings, to hedge benchmark risk and also to attempt to hedge thevalue of certain Classes of Euro denominated shares. Contracts MARKET PRICE RISKoutstanding at 31 December 2005 are disclosed in the relevant Market price risk arises mainly from uncertainty about futureFund’s Portfolio Investments. prices of financial instruments held, which are classified as

financial assets at fair value through profit or loss. It represents11. EXCHANGE RATES the potential loss the Company might suffer through holding

market positions in the face of price movements. There can beThe functional and presentational currency of the Company isno assurance that the Funds will achieve their investment objec-US dollar. Each Fund prepares its valuation in US dollar withtives. Certain Share Classes of Euro Reserve Fund and US Dollarthe exception of Euro Reserve Fund which prepares valuationsReserve Fund seek to maintain a constant net asset value perin Euro.Share (although there is no guarantee these Share Classes will beable to do so), but the value of Shares of other Share Classes andFunds and the related income may rise or fall, as the fair valueprice of the securities in which the Fund invests may fluctuate.



A Sub-Investment Adviser may take a ‘‘bottom up’’ approach to receipts of income into US dollar on or near the date of receipt.building portfolios. In other words, it seeks to identify individu- However it does not hedge or otherwise seek to avoid movemental companies with earnings growth potential that may not be risk on income accrued but not received.recognised by the market at large. Other than Global Life Sci-

Euro Reserve Fund is fully denominated in Euro. US Dollarences Fund, Global Technology Fund and US REIT Fund, secu-

Reserve Fund is fully denominated in US dollars. US Valuerities are generally selected without regard to any defined

Fund*, US Strategic Value, US Risk Managed Core, US REIT,industry sector or other similarly defined selection procedure,

US High Yield and US Short-Term Bond Funds had partial butand none of the Funds other than those mentioned above,

insignificant exposure to currencies other than their functionalintend to specialise in any particular industry sector. A portfolio

currency. The following sets out the total exposure to foreignfund manager has responsibility for monitoring the existing

currency risk including short-term assets and liabilities of Bal-portfolio selected in accordance with the overall asset allocation

anced Fund, Global Fundamental Equity Fund, Global Life Sci-parameter described above and seeks to ensure that individual

ences Fund, Global Technology Fund, US All Cap Growth Fund,securities also meet the risk reward profile that is acceptable.

US Fundamental Equity Fund, US Twenty Fund, US VentureFund and US Flexible Income Fund as at 31 December 2005:FOREIGN CURRENCY RISK

Fund Currency Amount in USD Hedging Total ExposureEach of the Funds, with the exception of US Dollar ReserveFund and US REIT Fund, have the flexibility to invest a portion Balanced Fund CAD $ 3,058,219 $ — $ 3,058,219of its net assets in non-US securities. Since each Fund’s func- CHF 10,248,349 — 10,248,349

Euro 5,830,068 (1,868,242) 3,961,826tional currency, with the exception of Euro Reserve Fund, is theGBP 6,043,129 (3,079,573) 2,963,556US dollar, as long as a Fund holds a foreign security, its value HKD 480,789 — 480,789

will be affected by the value of the local currency relative to the KRW 5,017,045 (872,522) 4,144,523

US dollar. The Funds may hedge against currency fluctuations Fund Currency Amount in USD Hedging Total Exposureby utilising futures contracts and forward currency contracts.

Global FundamentalEquity Fund CHF $ 185,985 $ — $ 185,985The Investment Adviser has identified three principal areas

Euro 2,275,262 — 2,275,262where foreign currency risk could impact the Company:GBP 2,251,896 — 2,251,896HKD 371,550 — 371,550) Movements in rates affect the fair value of investments;

JPY 2,814,110 — 2,814,110

) Movements in rates affect short-term timing differences; Fund Currency Amount in USD Hedging Total Exposure

and Global Life SciencesFund CHF $23,183,958 $ — $23,183,958

) Movements in rates affect the income received. GBP 4,524,302 (4,524,302) —Euro 4,166,242 — 4,166,242

The Company can hedge the initial investment and subsequentFund Currency Amount in USD Hedging Total Exposure

gains of the US dollar value of investments that are priced inGlobal Technology BRL $ 207,074 $ — $ 207,074other currencies. The hedging is done by buying forward cur-

CHF 2,444,412 — 2,444,412rency contracts to minimise the amount of foreign currency risk. Euro 12,203,171 (3,203,792) 8,999,379GBP 6,756,588 (2,115,761) 4,640,827The Company may be subject to short-term exposure to HKD 628,640 — 628,640

exchange rate movements, for instance, where there is an INR 674,785 — 674,785JPY 6,319,193 (2,071,449) 4,247,744exchange difference between the date an investment purchase or

KRW 4,348,155 (1,444,640) 2,903,515sale is entered into and the date when settlement of the pro- TWD 6,964,057 (1,758,601) 5,205,456ceeds occurs. When the Company enters into such a transaction

Fund Currency Amount in USD Hedging Total Exposurewhich will involve the buying and selling of foreign currency in

US All Cap Growthorder to complete it, a forward currency contract can be enteredFund CAD $ 1,939 $ — $ 1,939into at the same time as the initial transaction in order to mini-

CHF 7,184,663 — 7,184,663mise exchange rate risk. Euro 4,009,378 — 4,009,378

GBP 1,340,394 — 1,340,394The Company receives income in currencies other than US dol- HKD 2,490,553 — 2,490,553

JPY 8,715,659 — 8,715,659lars and the US dollar value of this income can be affected byKRW 2,141,688 — 2,141,688movements in exchange rates. The Company converts all

* This Fund was terminated on 31 May 2005 and its approval revoked by the Financial Regulatoron 28 June 2005.



Fund Currency Amount in USD Hedging Total Exposure Fund Currency Amount in USD Hedging Total Exposure

US Fundamental US All Cap GrowthEquity Fund CAD $ 1,215,183 $ — $ 1,215,183 Fund CAD $ 2,048 $ — $ 2,048

CHF 1,275,905 — 1,275,905 CHF 3,445,694 — 3,445,694Euro 1,401,096 — 1,401,096 Euro 6,360,132 — 6,360,132GBP 801,502 — 801,502 JPY 2,567,776 — 2,567,776JPY 1,154,150 — 1,154,150

Fund Currency Amount in USD Hedging Total ExposureKRW 1,099,667 — 1,099,667

US FundamentalFund Currency Amount in USD Hedging Total ExposureEquity Fund CAD $ 230,328 $ — $ 230,328

US Twenty Fund CHF $23,624,512 $ — $23,624,512 CHF 1,581,444 — 1,581,444Euro 1,377,158 — 1,377,158

Fund Currency Amount in USD Hedging Total Exposure GBP 1,139,015 — 1,139,015JPY 363,853 — 363,853US Venture Fund BRL $ 2,928,968 $ — $ 2,928,968

KRW 204,535 — 204,535CAD 2,579,301 — 2,579,301Fund Currency Amount in USD Hedging Total ExposureFund Currency Amount in USD Hedging Total Exposure

US Twenty Fund CHF $21,333,212 $ — $21,333,212US Flexible IncomeFund EURO $ 8,157,948 $(3,947,061) $ 4,210,887 Fund Currency Amount in USD Hedging Total Exposure

The following sets out the total exposure to foreign currency risk US Venture Fund CAD $ 3,777,897 $ (74,172) $ 3,703,725

including short-term assets and liabilities of Balanced Fund, Fund Currency Amount in USD Hedging Total ExposureGlobal Fundamental Equity Fund, Global Life Sciences Fund,

US FlexibleGlobal Technology Fund, US All Cap Growth Fund, US Funda- Income Fund Euro $27,204,392 $(13,063,423) $14,140,969mental Equity Fund, US Twenty Fund, US Venture Fund, and

As at 31 December 2004, US Value*, US Strategic Value, US RiskUS Flexible Income Fund, as at 31 December 2004:Managed Core, US REIT, US Flexible Income, US High YieldFund Currency Amount in USD Hedging Total Exposureand US Short-Term Bond Funds had partial but insignificant

Balanced Fund CAD $ 1,706,439 $ — $ 1,706,439 exposure to currencies other than their functional currency.CHF 12,360,508 — 12,360,508Euro 7,591,637 (3,265,856) 4,325,781 Certain Forward Currency Contracts as included in the analysisGBP 4,980,284 (4,715,782) 264,502

of the Portfolio Investments are entered into in order to hedgeKRW 1,849,522 (868,927) 980,595the value of the Euro Share Classes and are not included in the

Fund Currency Amount in USD Hedging Total Exposureabove analysis.

GlobalFundamental INTEREST RATE RISKEquity Fund CHF $ 679,742 $ — $ 679,742 The performance of Balanced, US Flexible Income, US HighEuro 3,190,370 — 3,190,370

Yield, US Short-Term Bond, Euro Reserve and US Dollar ReserveGBP 3,830,284 — 3,830,284JPY 4,919,684 — 4,919,684 Funds depends primarily on interest rates. Generally, the value

Fund Currency Amount in USD Hedging Total Exposure of debt securities will tend to decrease in value when interestrates rise and vice versa. Shorter-term securities are less sensi-

Global Life Sciencestive to interest rate changes than longer-term securities, but theyFund CHF $20,211,935 $ (5,084,824) $15,127,111

Euro 10,608,464 (4,245,612) 6,362,852 also usually offer lower yields. Each Fund varies the averageGBP 3,541,873 (1,695,272) 1,846,601 maturity profile of its portfolio based on an analysis of interestJPY 14,525,040 (3,539,458) 10,985,582

rate trends and other factors.Fund Currency Amount in USD Hedging Total Exposure

The Funds invest in both fixed rate and floating rate securities.Global Technology

Any change to the interest rates relevant for particular securitiesFund CHF $ 2,068,131 $ — $ 2,068,131Euro 13,164,364 (2,381,353) 10,783,011 may result in either income increasing or decreasing, or theGBP 5,610,002 (952,400) 4,657,602 Sub-Investment Adviser being unable to secure similar returnsHKD 162,243 — 162,243

on the expiry of contracts or the sale of securities. In addition,INR 347,157 — 347,157JPY 4,966,439 (983,183) 3,983,256 changes to prevailing rates or changes in expectations of future

KRW 6,040,159 (1,279,279) 4,760,880 rates may result in an increase or decrease in the value of securi-SEK 562,029 — 562,029

ties held.TWD 5,559,557 — 5,559,557

In general, if interest rates rise the income potential of the Fundalso rises but the value of the fixed rate securities will decline




Fixed rate(along with certain expenses calculated by reference to the assets Fixed rate Financial assetsof the Company). A decline in interest rates will in general have Financial assets Weighted average

Weighted Period for whichthe opposite effect. Average Rate is fixedInterest rate (years)

For US All Cap Growth, US Twenty, US Venture, US Fundamen-Balanced Fund 5.25% 6.41tal Equity, Global Fundamental Equity, Global Life Sciences,US Flexible Income Fund 5.04% 6.80Global Technology, US Value*, US Strategic Value, US Risk Man- US High Yield Fund 8.05% 6.51

aged Core and US REIT Funds, the majority of the financial US Short-Term Bond Fund 3.81% 1.95Euro Reserve Fund 2.08% 0.03assets are equity shares which neither pay interest nor have aUS Dollar Reserve Fund 1.79% 0.27

maturity date.

FINANCIAL LIABILITIESBalanced, US Flexible Income, US High Yield, US Short-TermSubstantially all of the financial liabilities for each Fund incur noBond, Euro Reserve and US Dollar Reserve Funds invest in float-interest payments.ing and fixed rate bonds. The basis of calculation for the floating

rate notes is based on the date of change of each coupon rate as LIQUIDITY RISKopposed to the bond maturity date in the portfolio of invest- The assets of the Funds comprise mainly readily realisable secu-ments. The floating rate notes held by the Funds at the year end rities. The main liability of the Funds tends to be outstandingare tracking the US LIBOR one or three month indices. The payables on the purchase of investments and the redemption ofinterest rate profile of these Funds’ financial assets at 31 Decem- any redeemable ordinary shares that investors wish to sell. Allber 2005 was: financial liabilities are due to mature within one year.

FinancialFloating rate Fixed rate assets on which CREDIT RISKfinancial financial no interest is

assets assets paid The Company will be exposed to a credit risk on parties withwhom it trades and will also bear the risk of settlement default.Balanced Fund $ 952,096 $ 104,330,245 $179,356,674The Company minimises concentrations of credit risk by under-US Flexible Income Fund 7,051,388 880,441,077 7,385,707

US High Yield Fund 54,481,176 879,114,598 7,875,554 taking transactions with a large number of customers andUS Short-Term Fund — 61,167,953 2,191,784

counterparties on recognised and reputable exchanges.Euro Reserve Fund — 4 20,008,046 —US Dollar Reserve Fund 27,929,000 $ 13,400,000 —

Gains and losses in the Company’s Income Statement arose inFixed rate

the normal course of business.Fixed rate Financial assetsFinancial assets Weighted average

Weighted Period for which SUBSCRIPTION DEFAULT RISKAverage Rate is fixed

Each Fund will bear the risk of subscription default. For theInterest rate (years)

purposes of efficient portfolio management, the InvestmentBalanced Fund 4.85% 5.59

Adviser or the relevant Sub-Investment Adviser may purchaseUS Flexible Income Fund 5.12% 14.32US High Yield Fund 7.95% 7.27 securities or utilise efficient portfolio management techniquesUS Short-Term Fund 3.84% 1.87

and instruments on the basis that settlement monies will beEuro Reserve Fund 2.30% 0.13US Dollar Reserve Fund 4.22% 0.07 received on the relevant settlement date. In the event such settle-

ment monies are not received by the Fund on or by the relevantThe interest rate profile of these Funds’ financial assets atsettlement date, the Fund may have to sell such purchased secu-31 December 2004 was:rities or close out its position under such efficient portfolio

Financial management techniques and instruments which could result inFloating rate Fixed rate assets on whichfinancial financial no interest is a loss to the Fund notwithstanding that a subscriber who

assets assets paid defaults in settling a subscription payment may be liable to theBalanced Fund $ 768,999 $ 142,833,765 $238,766,608 Fund for any such loss.US Flexible

Income Fund 6,864,886 1,197,197,445 8,894,523 FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIESUS High Yield Fund 49,203,628 884,835,216 4,462,200All of the financial assets and liabilities of the Funds are stated atUS Short-Term

Bond Fund 7,793,166 122,237,861 — their fair value.Euro Reserve Fund — 4 24,302,548 —US Dollar Reserve Fund 69,701,000 $ 15,299,912 —




13. NET ASSET COMPARISON

In accordance with the provisions of the Company’s Prospectus, marketable investment securities are valued at the last quotedtrade price as at the close of regular trading sessions on the NYSE on the relevant Business Day. Marketable investment secu-rities for financial statement purposes have been valued based on the closing bid prices as of the close of business on the rele-vant Business Day. The difference between the valuation methodology of the financial statements, as required by FRS 26, andthe policy in the Company’s Prospectus, results in there being differences between (i) the Net Assets and NAV per Share,which are detailed in the table below, and (ii) the dealing Net Assets and NAV per Share at which shareholders of redeemableordinary shares can subscribe and redeem.

31 December 2005 31 December 2004*** 31 December 2003***NAV NAV NAV

Net Assets Per Share Net Assets Per Share Net Assets Per Share

Balanced FundClass A$ $ 43,632,687 $ 13.35 $ 80,943,441 $ 12.50 $ 85,731,056 $ 11.72Class B$ 79,367,750 $ 12.48 147,297,779 $ 11.81 225,594,114 $ 11.18Class C$* — — 956,177 $ 12.32 851,953 $ 11.58Class I$ 90,044,392 $ 13.98 96,426,970 $ 12.99 91,115,922 $ 12.08Class A4 64,498,821 4 15.45 50,807,157 4 14.63 41,725,648 4 13.60Class B4 5,828,949 4 14.54 11,805,870 4 13.91 15,885,566 4 13.06

Global Fundamental EquityFundClass A$ 3,232,754 $ 14.43 3,219,897 $ 14.12 1,738,881 $ 12.43Class B$ 3,786,382 $ 13.84 6,255,565 $ 13.69 6,389,443 $ 12.18Class C$* — $ — 456,601 $ 14.01 353,448 $ 12.38Class I$ 34,843 $ 15.03 730,085 $ 14.58 2,407,483 $ 12.71Class A4 8,422,141 4 13.80 16,627,004 4 13.70 8,417,054 4 11.99Class B4 1,116,568 4 13.23 2,116,268 4 13.27 1,342,965 4 11.73

Global Life Sciences FundClass A$ 99,084,005 $ 9.92 88,191,989 $ 9.00 68,965,585 $ 8.01Class B$ 125,838,196 $ 9.32 146,312,727 $ 8.55 139,690,410 $ 7.68Class C$* — — 320,216 $ 8.89 473,488 $ 7.94Class I$ 9,455,210 $ 10.39 8,249,922 $ 9.35 7,881,277 $ 8.25Class A4 61,775,681 4 10.96 59,226,113 4 10.08 40,217,454 4 8.90Class B4 19,325,798 4 10.36 17,887,995 4 9.62 12,743,028 4 8.58

Global Technology FundClass A$ 20,036,648 $ 3.39 26,907,306 $ 3.12 80,938,237 $ 3.16Class B$ 29,854,612 $ 3.20 45,575,400 $ 2.98 64,576,524 $ 3.05Class C$* — — 51,210 $ 3.10 92,273 $ 3.16Class I$ 11,579,146 $ 3.54 9,686,783 $ 3.23 10,176,721 $ 3.24Class A4 16,233,080 4 3.86 19,829,783 4 3.59 30,117,719 4 3.61Class B4 3,552,703 4 3.64 4,535,737 4 3.42 7,314,187 4 3.47

US All Cap Growth FundClass A$ 121,017,491 $ 10.91 67,633,360 $ 9.71 98,325,382 $ 9.11Class B$ 35,835,528 $ 10.19 63,498,648 $ 9.17 92,060,393 $ 8.70Class C$* — — 364,494 $ 9.58 588,232 $ 9.01Class I$ 147,226 $ 11.39 1,624,736 $ 10.06 13,607,764 $ 9.35Class A4 19,931,095 4 12.68 21,440,665 4 11.43 77,474,849 4 10.62Class B4 1,401,823 4 12.10 2,485,130 4 11.03 2,640,318 4 10.35

* This Class closed for new subscriptions on 15 July 2005, and was fully redeemed on 31 October 2005 and is no longer offered by the Company.

*** The comparative information discloses the dealing Net Assets and NAV per Share and were not restated to reflect the valuation methodology required by FRS 26.





US Fundamental EquityFundClass A$ $ 7,746,438 $ 13.12 $ 9,082,126 $ 11.42 $ 13,308,177 $ 10.30Class B$ 5,821,092 $ 12.62 6,538,436 $ 11.10 9,791,851 $ 10.11Class C$* — — 281,661 $ 11.37 39,373 $ 10.27Class I$ 26,509 $ 13.68 22,842 $ 11.79 15,601,972 $ 10.52Class A4 41,799,881 4 13.15 21,211,868 4 11.60 37,610,720 4 10.37Class B4 492,576 4 12.63 2,407,646 4 11.26 2,556,095 4 10.18

US Strategic Value FundClass A$ 92,252,287 $ 12.37 150,402,129 $ 11.35 24,489,625 $ 9.76Class B$ 14,134,176 $ 11.72 19,879,578 $ 10.89 19,026,744 $ 9.47Class C$* — — 50,532 $ 11.30 43,595 $ 9.75Class I$ 93,770,129 $ 12.92 91,982,619 $ 11.77 35,900,871 $ 10.03Class A4 85,810,845 4 12.12 130,358,368 4 11.25 21,695,696 4 9.61Class B4 979,339 4 11.47 2,727,001 4 10.79 2,233,765 4 9.32

US Twenty FundClass A$ 139,053,377 $ 10.85 72,941,023 $ 9.78 73,514,454 $ 8.52Class B$ 80,746,233 $ 10.11 106,689,661 $ 9.21 133,605,632 $ 8.11Class C$* — — 1,167,944 $ 9.65 981,131 $ 8.42Class I$ 75,605,486 $ 11.22 70,991,847 $ 10.03 70,292,493 $ 8.67Class A4 52,207,233 4 12.51 52,481,076 4 11.42 91,531,949 4 9.86Class B4 6,983,851 4 11.83 4,422,983 4 10.91 3,910,445 4 9.51Class I4 35,312 4 13.70 287,245 4 12.41 228,349 4 10.62

US Venture FundClass A$ 27,981,973 $ 8.74 79,896,159 $ 8.27 69,392,204 $ 7.22Class B$ 27,773,335 $ 8.26 50,506,652 $ 7.89 79,724,847 $ 6.96Class C$* — — 76,007 $ 8.27 19 —Class I$ 5,151,733 $ 9.08 7,056,500 $ 8.50 6,495,626 $ 7.36Class A4 21,618,322 4 10.33 32,326,700 4 9.93 25,056,486 4 8.62Class B4 4,327,673 4 9.74 4,044,986 4 9.45 5,004,578 4 8.29

US Value Fund**Class A$ — — 426,541 $ 10.66 407,553 $ 10.19Class B$ — — 422,181 $ 10.55 407,443 $ 10.19Class C$* — — 425,447 $ 10.64 407,526 $ 10.19Class I$ — — 430,916 $ 10.77 407,637 $ 10.19Class A4 — — 469,498 4 10.74 413,662 4 10.19

US Risk Managed Core FundClass A$ 1,643,533,128 $ 15.96 331,222,177 $ 14.47 12,152,541 $ 12.45Class B$ 6,932,385 $ 15.57 6,206,671 $ 14.26 2,760,219 $ 12.38Class C$* — — 134,357 $ 14.26 52,074 $ 12.36Class I$ 196,544,170 $ 16.19 106,972,614 $ 14.61 19,221,119 $ 12.50Class A4 216,081,713 4 16.08 132,975,998 4 14.76 15,109,300 4 12.63

US REIT FundClass A1$ 435,647 $ 12.36 376,539 $ 12.14 225,622 $ 10.59Class A2$ 5,838,497 $ 13.08 6,040,699 $ 12.46 1,292,506 $ 10.59Class B1$ 1,079,915 $ 12.33 2,882,213 $ 12.11 587,016 $ 10.57Class B2$ 94,362 $ 12.81 348,733 $ 12.31 440,295 $ 10.57Class C2$* — — 288,726 $ 12.43 182,474 $ 10.59Class I1$ 313,239,347 $ 12.36 341,567,125 $ 12.14 103,704,626 $ 10.61Class A24 13,340,194 4 12.87 9,458,921 4 12.40 162,864 4 10.51


** This Fund was terminated on 31 May 2005 and its approval revoked by the Financial Regulator on 28 June 2005. The information for this Fund is up to the date of termination.






US Flexible Income FundClass A1$ $ 6,895,895 $ 10.20 $ 10,494,166 $ 10.44 $ 21,315,667 $ 10.47Class B1$ 21,938,801 $ 10.20 39,736,384 $ 10.43 88,611,874 $ 10.47Class A2$ 35,850,992 $ 13.24 35,518,903 $ 13.17 45,167,814 $ 12.87Class B2$ 17,678,707 $ 12.47 32,133,038 $ 12.53 73,737,555 $ 12.37Class I1$ 753,896,658 $ 10.24 987,647,149 $ 10.47 1,071,357,521 $ 10.51Class A14 — — — — 103 —Class B14 492,572 4 9.78 241,373 4 10.15 184,658 4 10.08Class A24 57,582,984 4 15.45 120,438,291 4 15.58 191,777,355 4 15.08Class B24 4,211,470 4 14.56 6,566,558 4 14.83 12,901,182 4 14.50Class I24 30,936 4 14.71 92,954 4 14.73 82,931 4 14.15Class C2$* — — 3,339,276 $ 13.00 4,378,172 $ 12.74

US High Yield FundClass A1$ 97,605,906 $ 9.56 89,262,638 $ 9.93 64,600,603 $ 9.74Class B1$ 316,357,277 $ 9.57 372,336,939 $ 9.95 198,952,966 $ 9.75Class A2$ 26,882,984 $ 14.24 54,113,135 $ 14.01 67,717,182 $ 13.01Class B2$ 33,522,068 $ 13.40 64,057,802 $ 13.32 70,024,380 $ 12.49Class I1$ 354,700,380 $ 9.58 219,745,558 $ 9.96 194,205,672 $ 9.76Class B14 58,084,526 4 10.25 19,579,196 4 10.79 5,070,233 4 10.48Class A24 62,707,932 4 16.54 101,690,942 4 16.48 92,923,415 4 15.16Class B24 14,904,263 4 15.59 27,957,290 4 15.70 16,421,452 4 14.59Class I24 4,154,718 4 12.89 16,944,713 4 12.75 17,645,613 4 11.61Class C2$* — — 7,541,328 $ 13.83 10,509,491 $ 12.88

US Short-Term Bond FundClass A1$ 5,722,689 $ 10.19 10,069,269 $ 10.35 12,431,219 $ 10.42Class B1$ 9,585,888 $ 10.18 25,146,969 $ 10.35 35,183,879 $ 10.41Class A2$ 12,434,785 $ 12.64 22,756,374 $ 12.57 31,116,164 $ 12.43Class B2$ 14,709,418 $ 11.91 35,794,648 $ 11.93 63,738,545 $ 11.88Class I1$ 38,951 $ 10.20 38,545 $ 10.36 7,113 $ 10.42Class A24 18,554,809 4 14.70 34,845,483 4 14.83 32,490,040 4 14.54Class B24 1,961,579 4 13.90 5,110,693 4 14.12 7,864,308 4 13.93Class C2$* — — 2,077,354 $ 12.08 2,204,126 $ 12.03

Euro Reserve FundClass A24 13,493,115 4109.61 16,503,525 4108.45 46,026,114 4107.32Class B24 1,260,682 4105.86 2,602,218 4105.48 2,057,083 4105.12Class I24 5,241,702 4107.44 5,147,728 4105.52 5,056,256 4103.64

US Dollar Reserve FundClass A1$ 336,248 $ 1.00 367,826 $ 1.00 1,176,384 $ 1.00Class B1$ 8,683,808 $ 1.00 20,854,094 $ 1.00 43,151,462 $ 1.00Class A2$ 22,035,637 $108.99 46,366,475 $106.40 82,092,639 $105.76Class B2$ 10,236,315 $106.10 15,970,162 $103.66 8,082,928 $103.16Class I1$ 188,173 $ 1.00 1,559,861 $ 1.00 27,284,018 $ 1.00Class C2$* — — 19,183 $103.74 572,286 $103.23





14. CAPITAL SHARE TRANSACTIONS

For the Year ended 31 December 2005

Class A$ Class B$ Class C$* Class I$ Class A5 Class B5

Balanced Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 6,473,363 80,493,773 12,472,335 171,458,797 77,606 818,247 7,420,342 90,935,764 2,562,468 31,664,211 626,507 3,904,614

Shares issued************************ 763,472 9,616,649 404,101 4,801,307 9,601 117,516 575,161 7,602,402 3,610,369 63,916,107 65,894 1,147,035

Shares redeemed********************* (3,968,484) (50,553,701) (6,518,184) (77,225,950) (87,207) (935,763) (1,555,513) (20,499,470) (2,633,944) (47,129,649) (352,537) (6,109,078)

At end of year *********************** 3,268,351 39,556,721 6,358,252 99,034,154 — — 6,439,990 78,038,696 3,538,893 48,450,669 339,864 (1,057,429)


Global Fundamental Equity Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 228,082 2,272,418 457,073 5,399,328 32,584 335,518 50,089 288,373 896,028 10,806,761 117,746 1,382,636

Shares issued************************ 217,442 3,042,489 119,347 1,606,591 — — — 190 587,919 10,269,904 93,918 1,536,236

Shares redeemed********************* (221,422) (3,082,276) (302,913) (4,042,055) (32,584) (335,518) (47,771) (675,000) (966,409) (16,551,771) (140,112) (2,205,567)

At end of year *********************** 224,102 2,232,631 273,507 2,963,864 — — 2,318 (386,437) 517,538 4,524,894 71,552 713,305


Global Life Sciences Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 9,797,836 164,471,074 17,116,006 306,927,861 36,007 300,184 882,129 10,434,106 4,338,763 59,038,056 1,372,403 21,959,774

Shares issued************************ 8,838,379 82,730,348 7,151,499 63,022,869 18,584 160,735 305,484 3,066,229 4,505,322 57,715,012 1,339,902 16,362,240

Shares redeemed********************* (8,644,180) (80,396,847) (10,769,918) (94,770,282) (54,591) (460,919) (277,875) (2,672,575) (4,064,797) (52,048,614) (1,130,977) (13,788,545)

At end of year *********************** 9,992,035 166,804,575 13,497,587 275,180,448 — — 909,738 10,827,760 4,779,288 64,704,454 1,581,328 24,533,469


Global Technology Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD


Shares issued************************ 1,542,885 4,943,150 360,066 1,106,421 — — 1,070,496 3,421,937 1,481,937 6,540,657 182,994 775,100

Shares redeemed********************* (4,257,130) (12,936,836) (6,331,870) (18,395,491) (16,495) (77,630) (800,729) (2,526,274) (1,993,219) (8,700,296) (334,451) (1,380,325)

At end of year *********************** 5,914,426 92,905,047 9,315,985 172,102,067 — — 3,273,102 14,433,428 3,564,753 22,650,488 828,414 11,558,033


US All Cap Growth Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 6,961,904 172,671,432 6,921,070 188,797,486 38,067 296,543 161,568 10,849,559 1,384,021 16,290,473 166,372 2,231,595

Shares issued************************ 9,279,232 93,806,399 384,121 3,560,042 110 993 2,593 25,000 1,286,814 18,438,252 29,289 410,578

Shares redeemed********************* (5,149,498) (51,205,473) (3,789,988) (34,909,856) (38,177) (297,536) (151,238) (1,482,353) (1,338,498) (19,489,166) (97,481) (1,362,543)

At end of year *********************** 11,091,638 215,272,358 3,515,203 157,447,672 — — 12,923 9,392,206 1,332,337 15,239,559 98,180 1,279,630


US Fundamental Equity Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 795,619 5,535,962 589,182 5,503,915 24,781 249,873 1,938 (1,790,840) 1,349,913 7,240,723 157,821 1,327,789

Shares issued************************ 327,205 4,002,935 179,784 2,033,993 200 2,219 — — 2,464,296 37,221,126 8,181 117,768

Shares redeemed********************* (532,330) (6,158,019) (307,887) (3,553,002) (24,981) (252,092) — — (1,119,566) (16,559,999) (132,946) (1,865,069)

At end of year *********************** 590,494 3,380,878 461,079 3,984,906 — — 1,938 (1,790,840) 2,694,643 27,901,850 33,056 (419,512)


US Strategic Value Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD


Shares issued************************ 9,914,890 114,588,668 487,609 5,317,389 50,151 571,044 3,254,346 38,826,085 4,503,526 64,261,373 99,449 1,368,931

Shares redeemed********************* (15,701,012) (181,536,964) (1,106,604) (12,320,224) (54,624) (608,984) (3,810,432) (45,519,790) (7,051,421) (101,268,610) (213,635) (2,894,054)

At end of year *********************** 7,459,767 65,494,766 1,206,400 18,812,996 — — 7,258,914 68,773,835 6,004,533 74,748,990 72,373 987,615

Class A$ Class B$ Class C$* Class I$ Class A5 Class B5 Class I5

US Twenty Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 7,458,154 146,192,970 11,582,146 228,815,680 121,079 950,255 7,074,621 70,005,469 3,391,812 31,897,338 299,222 3,501,204 17,088 158,736

Shares issued************************ 11,312,366 120,334,057 2,467,656 23,778,784 18,985 179,963 3,865,780 40,449,286 2,847,340 40,865,168 437,083 6,099,528 — —

Shares redeemed********************* (5,952,891) (58,611,399) (6,065,958) (56,979,949) (140,064) (1,130,218) (4,201,701) (42,197,592) (2,700,501) (38,660,896) (235,615) (3,252,421) (14,903) (226,011)

At end of year *********************** 12,817,629 207,915,628 7,983,844 195,614,515 — — 6,738,700 68,257,163 3,538,651 34,101,610 500,690 6,348,311 2,185 (67,275)





US Venture Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ***************** 9,666,280 77,835,466 6,401,568 56,189,016 9,196 50,014 829,996 5,578,233 2,403,648 22,370,257 315,966 2,299,417

Shares issued*********************** 2,604,806 21,551,025 1,782,761 13,969,243 14,859 120,044 38,045 317,720 2,113,061 25,740,518 368,900 4,275,876

Shares redeemed******************** (9,068,914) (73,997,173) (4,820,978) (37,608,831) (24,055) (170,058) (300,687) (2,495,834) (2,742,913) (33,482,671) (308,083) (3,531,947)

At end of year ********************** 3,202,172 25,389,318 3,363,351 32,549,428 — — 567,354 3,400,119 1,773,796 14,628,104 376,783 3,043,346

Class A$ Class B$ Class C$* Class I$ Class A5

US Value Fund** Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ***************** 40,000 400,000 40,000 400,000 40,000 400,000 40,000 400,000 32,263 400,000

Shares issued*********************** — — — — — — — — — —

Shares redeemed******************** (40,000) (400,000) (40,000) (400,000) (40,000) (400,000) (40,000) (400,000) (32,263) (400,000)

At end of year ********************** — — — — — — — — — —

Class A$ Class B$ Class I$ Class A5 Class C$*

US Risk Managed Core Fund Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ***************** 22,885,389 299,517,328 435,283 4,980,389 7,321,534 92,046,091 6,648,858 118,080,457 9,420 112,779

Shares issued*********************** 103,528,662 1,555,424,274 416,449 6,030,539 8,006,021 120,364,020 15,648,696 294,733,987 42,804 608,810

Shares redeemed******************** (23,422,146) (357,245,264) (406,455) (5,875,075) (3,188,816) (48,430,430) (10,905,704) (206,499,602) (52,224) (721,589)

At end of year ********************** 102,991,905 1,497,696,338 445,277 5,135,853 12,138,739 163,979,681 11,391,850 206,314,842 — —

Class A1$ Class A2$ Class B1$ Class B2$ Class C2$* Class I$ Class A25

US REIT Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ***************** 31,026 256,739 484,778 5,330,767 238,036 2,415,826 28,324 267,023 23,231 249,692 28,127,915 296,930,068 563,080 7,970,574

Shares issued*********************** 74,817 883,630 469,091 5,877,513 44,982 519,046 8,565 102,827 10,540 129,853 3,408,684 40,200,003 652,096 10,063,572

Shares reinvested ******************* 530 6,266 — — 520 6,166 — — — — — — — —

Shares redeemed******************** (71,127) (840,496) (507,554) (6,378,961) (195,966) (2,333,499) (29,525) (368,002) (33,771) (379,545) (6,199,134) (75,483,972) (336,735) (5,162,893)

At end of year ********************** 35,246 306,139 446,315 4,829,319 87,572 607,539 7,364 1,848 — — 25,337,465 261,646,099 878,441 12,871,253

Class A$ Class A2$ Class B1$ Class B2$ Class C2$* Class I$

US Flexible Income Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ***************** 1,005,524 998,352 2,697,402 33,022,668 3,808,491 34,062,161 2,564,790 24,899,420 256,840 3,007,654 94,342,361 956,603,331

Shares issued*********************** 98,338 1,011,753 471,569 6,222,631 273,811 2,821,521 148,437 1,856,276 39,263 510,839 1,470,785 15,159,001

Shares reinvested ******************* 4,733 48,729 — — 10,522 108,425 — — — — 3,040,304 31,382,307

Shares redeemed******************** (432,807) (4,461,686) (460,878) (6,078,943) (1,942,379) (20,004,642) (1,295,869) (16,163,681) (296,103) (3,518,493) (25,198,556) (259,095,475)

At end of year ********************** 675,788 (2,402,852) 2,708,093 33,166,356 2,150,445 16,987,465 1,417,358 10,592,015 — — 73,654,894 744,049,164

Class A25 Class B25 Class I5 Class B5

US Flexible Income Fund Shares USD Shares USD Shares USD Shares USD

At beginning of year ***************** 5,705,876 58,531,243 326,769 (482,557) 4,657 52,382 17,560 183,704

Shares issued*********************** 1,747,999 33,031,580 49,861 917,471 — — 34,669 424,518

Shares reinvested ******************* — — — — — — 57 707

Shares redeemed******************** (4,293,692) (84,479,110) (131,401) (2,402,413) (2,875) (53,920) (9,587) (116,649)

At end of year ********************** 3,160,183 7,083,713 245,229 (1,967,499) 1,782 (1,538) 42,699 492,280

Class A1$ Class A2$ Class B1$ Class B2$ Class C2$* Class I$

US High Yield Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ***************** 8,985,064 83,791,226 3,861,169 42,987,278 37,435,637 361,288,954 4,810,262 55,588,832 545,199 5,785,584 22,067,758 205,607,613

Shares issued*********************** 10,861,218 104,358,665 519,056 7,285,340 7,594,172 74,089,864 765,473 10,187,460 1,461 20,200 17,462,493 169,785,721

Shares reinvested ******************* 41,038 396,003 — — 26,640 258,906 — — — — 1,874,455 18,100,317

Shares redeemed******************** (9,676,328) (93,569,626) (2,492,916) (34,926,720) (12,006,796) (116,334,315) (3,073,511) (40,720,344) (546,660) (5,805,784) (4,384,668) (42,583,072)

At end of year ********************** 10,210,992 94,976,268 1,887,309 15,345,898 33,049,653 319,303,409 2,502,224 25,055,948 — — 37,020,038 350,910,579


US High Yield Fund Shares USD Shares USD Shares USD Shares USD

At beginning of year ***************** 4,553,599 57,118,701 1,314,301 20,601,488 980,761 (36,987,433) 1,339,038 16,626,863

Shares issued*********************** 2,687,043 55,079,062 514,802 10,274,350 165,450 2,595,816 4,420,316 58,109,968

Shares reinvested ******************* — — — — — — 2,345 28,614

Shares redeemed******************** (4,026,116) (82,236,257) (1,018,690) (20,024,579) (872,901) (13,980,500) (958,849) (12,191,902)

At end of year ********************** 3,214,526 29,961,506 810,413 10,851,259 273,310 (48,372,117) 4,802,850 62,573,543


** This Fund was terminated on 31 May 2005 and its approval revoked by the Financial Regulator on 28 June 2005. The information for this Fund is up to the date of termination.




US Short-Term Bond Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 973,088 9,945,236 1,810,680 19,366,567 2,430,530 24,428,051 3,001,275 31,629,084 171,902 2,015,575 3,719 216,197

Shares issued************************ 34,228 351,944 1,000,661 12,561,456 352,181 3,615,164 210,288 2,501,580 9,476 114,145 — —

Shares reinvested ******************** 5,516 56,524 — — 12,091 123,930 — — — — 100 1,019

Shares redeemed********************* (451,031) (4,624,417) (1,827,521) (22,959,647) (1,853,507) (18,966,356) (1,976,702) (23,502,489) (181,378) (2,129,720) — —

At end of year *********************** 561,801 5,729,287 983,820 8,968,376 941,295 9,200,789 1,234,861 10,628,175 — — 3,819 217,216

Class A25 Class B25

US Short-Term Bond Fund Shares USD Shares USD

At beginning of year ****************** 1,733,819 23,699,332 267,244 (498,445)

Shares issued************************ 1,575,646 28,653,894 32,758 562,470

Shares reinvested ******************** — — — —

Shares redeemed********************* (2,239,672) (41,321,955) (180,338) (3,089,205)

At end of year *********************** 1,069,793 11,031,271 119,664 (3,025,180)

Class A25 Class B25 Class I25

Euro Reserve Fund Shares EUR Shares EUR Shares EUR

At beginning of year ****************** 152,182 15,514,642 24,671 2,469,482 48,784 4,928,943

Shares issued************************ 235,552 25,683,433 19,519 2,061,636 — —

Shares redeemed********************* (264,630) (28,828,461) (32,281) (3,410,321) — —

At end of year *********************** 123,104 12,369,614 11,909 1,120,797 48,784 4,928,943


US Dollar Reserve Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 368,097 368,198 435,771 45,608,907 20,848,262 20,849,757 154,057 15,734,683 184 15,953 1,560,092 1,560,044

Shares issued************************ 67,647 67,647 102,076 10,981,041 4,139,508 4,139,508 114,397 11,975,996 — — 100,011,712 100,012,053

Shares reinvested ******************** 5,601 5,601 — — 114,729 114,729 — — — — 79,933 79,933

Shares redeemed********************* (104,818) (104,818) (335,671) (35,967,008) (16,424,326) (16,424,326) (171,973) (17,971,944) (184) (15,953) (101,463,660) (101,463,660)

At end of year *********************** 336,527 336,628 202,176 20,622,940 8,678,173 8,679,668 96,481 9,738,735 — — 188,077 188,370

For the Year ended 31 December 2004Class A$ Class B$ Class C$ Class I$ Class A5 Class B5

Balanced Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD


Shares issued************************ 2,168,955 25,772,949 1,614,616 18,170,989 37,167 440,265 1,077,573 13,091,890 1,265,233 21,695,786 99,759 1,639,268

Shares redeemed********************* (3,011,416) (35,553,779) (9,322,571) (105,105,010) (33,157) (390,768) (1,200,783) (14,672,282) (1,140,061) (19,521,509) (439,940) (7,233,485)

At end of year *********************** 6,473,363 80,493,773 12,472,335 171,458,797 77,606 818,247 7,420,342 90,935,764 2,562,468 31,664,211 626,507 3,904,614

Class A$ Class B$ Class C$ Class I$ Class A5 Class B5

Global Fundamental Equity Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 139,852 1,021,938 524,512 6,214,975 28,560 280,927 189,365 2,080,854 557,870 5,416,999 90,965 921,340

Shares issued************************ 824,066 10,605,214 478,014 6,045,525 10,351 133,108 — — 1,268,251 19,839,346 46,373 759,134

Shares redeemed********************* (735,836) (9,354,734) (545,453) (6,861,172) (6,327) (78,517) (139,276) (1,792,481) (930,093) (14,449,584) (19,592) (297,838)

At end of year *********************** 228,082 2,272,418 457,073 5,399,328 32,584 335,518 50,089 288,373 896,028 10,806,761 117,746 1,382,636


Global Life Sciences Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 8,609,785 154,317,817 18,177,156 314,406,790 59,652 481,921 954,951 11,064,533 3,590,002 50,518,586 1,179,450 20,040,536

Shares issued************************ 7,839,520 67,029,591 7,844,434 64,701,089 22,078 193,020 74,260 659,216 3,707,166 43,882,427 1,292,949 14,651,129

Shares redeemed********************* (6,651,469) (56,876,334) (8,905,584) (72,180,018) (45,723) (374,757) (147,082) (1,289,643) (2,958,405) (35,362,957) (1,099,996) (12,731,891)

At end of year *********************** 9,797,836 164,471,074 17,116,006 306,927,861 36,007 300,184 882,129 10,434,106 4,338,763 59,038,056 1,372,403 21,959,774


Global Technology Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 25,604,820 152,165,858 21,145,430 206,117,632 29,199 107,696 3,140,975 13,967,195 6,625,861 35,051,964 1,673,417 15,025,573

Shares issued************************ 5,636,980 17,577,676 685,696 2,184,708 17,556 56,985 510,229 1,574,916 6,172,812 28,168,038 52,857 217,915

Shares redeemed********************* (22,613,129) (68,844,801) (6,543,337) (18,911,203) (30,260) (87,051) (647,869) (2,004,346) (8,722,638) (38,409,875) (746,403) (3,080,230)

At end of year *********************** 8,628,671 100,898,733 15,287,789 189,391,137 16,495 77,630 3,003,335 13,537,765 4,076,035 24,810,127 979,871 12,163,258


US All Cap Growth Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD


Shares issued************************ 5,660,170 52,090,186 1,386,012 12,165,754 9,666 88,864 5,203 54,249 1,850,097 24,553,465 123,639 1,609,673

Shares redeemed********************* (9,486,065) (82,973,117) (5,040,554) (43,655,521) (36,897) (325,769) (1,298,501) (12,375,299) (6,260,003) (80,702,956) (159,883) (2,091,279)

At end of year *********************** 6,961,904 172,671,452 6,921,070 188,797,486 38,067 296,543 161,568 10,849,559 1,384,021 16,290,473 166,372 2,231,595





US Fundamental Equity Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 1,292,436 10,580,429 968,538 9,389,037 3,833 31,681 1,483,614 13,575,090 2,880,543 26,909,725 199,584 1,871,408

Shares issued************************ 482,828 5,051,155 146,244 1,510,404 20,948 218,192 1,938 23,140 2,303,429 29,990,497 1,545 19,414

Shares redeemed********************* (979,645) (10,095,622) (525,600) (5,395,526) — — (1,483,614) (15,389,070) (3,834,059) (49,659,499) (43,308) (563,033)

At end of year *********************** 795,619 5,535,962 589,182 5,503,915 24,781 249,873 1,938 (1,790,840) 1,349,913 7,240,723 157,821 1,327,789


US Strategic Value Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD


Shares issued************************ 18,612,788 191,718,290 940,934 9,403,927 — — 7,612,934 80,464,559 9,884,141 133,946,503 36,267 485,634

Shares redeemed********************* (7,875,207) (84,952,679) (1,125,494) (11,148,065) — — (3,377,489) (35,895,343) (3,124,591) (40,798,211) (40,118) (487,967)

At end of year *********************** 13,245,889 132,443,062 1,825,395 25,815,831 4,473 37,940 7,815,000 75,467,540 8,552,428 111,756,227 186,559 2,512,738

Class A$ Class B$ Class C$ Class I$ Class A5 Class B5 Class I5

US Twenty Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 8,629,350 157,322,492 16,466,532 269,986,677 116,487 906,244 8,109,768 78,622,782 7,379,028 81,147,128 326,692 3,817,333 17,088 158,736

Shares issued************************ 6,063,453 52,897,504 1,687,999 14,227,749 27,861 246,437 3,599,464 32,458,515 2,105,163 26,916,300 128,557 1,656,137 — —

Shares redeemed********************* (7,234,649) (64,027,026) (6,572,385) (55,398,746) (23,269) (202,426) (4,634,611) (41,075,828) (6,092,379) (76,166,090) (156,027) (1,972,266) — —

At end of year *********************** 7,458,154 146,192,970 11,582,146 228,815,680 121,079 950,255 7,074,621 70,005,469 3,391,812 31,897,338 299,222 3,501,204 17,088 158,736


US Venture Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 9,609,003 76,959,692 11,449,422 92,722,091 — (29,641) 882,811 5,961,492 2,308,773 19,673,004 479,608 4,135,802

Shares issued************************ 8,647,677 64,088,980 6,952,175 48,907,720 29,772 225,128 87,783 657,939 4,090,157 46,157,800 563,057 5,852,735

Shares redeemed********************* (8,590,400) (63,213,206) (12,000,029) (85,440,795) (20,576) (145,473) (140,598) (1,041,198) (3,995,282) (43,460,547) (726,699) (7,689,120)

At end of year *********************** 9,666,280 77,835,466 6,401,568 56,189,016 9,196 50,014 829,996 5,578,233 2,403,648 22,370,257 315,966 2,299,417

Class A$ Class B$ Class C$ Class I$ Class A5

US Value Fund Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year****************** 40,000 400,000 40,000 400,000 40,000 400,000 40,000 400,000 32,263 400,000

Shares issued *********************** — — — — — — — — — —

Shares redeemed ******************** — — — — — — — — — —

At end of period********************* 40,000 400,000 40,000 400,000 40,000 400,000 40,000 400,000 32,263 400,000

Class A$ Class B$ Class I$ Class A5 Class C$

US Risk Managed Core Fund Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 976,148 10,590,797 222,999 2,274,563 1,537,734 17,728,427 950,762 12,420,719 4,213 46,500

Shares issued************************ 26,057,512 345,454,331 291,966 3,743,965 6,332,395 81,679,988 7,039,503 128,052,718 5,999 76,560

Shares redeemed********************* (4,148,271) (56,527,800) (79,682) (1,038,139) (548,595) (7,362,324) (1,341,407) (22,392,980) (792) (10,281)

At end of year *********************** 22,885,389 299,517,328 435,283 4,980,389 7,321,534 92,046,091 6,648,858 118,080,457 9,420 112,779

Class A1$ Class A2$ Class B1$ Class B2$ Class C2$ Class I1$ Class A25

US REIT Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 21,302 214,127 122,130 1,264,841 55,560 561,477 41,666 419,432 17,237 172,878 9,770,092 99,204,615 12,316 142,857

Shares issued************************ 95,542 986,397 513,854 5,721,624 470,278 5,098,165 46,135 510,566 59,103 641,541 19,986,544 216,108,046 625,953 8,983,720

Shares reinvested ******************** 490 5,319 — — 852 9,285 — — — — — — — —

Shares redeemed********************* (86,308) (949,104) (151,206) (1,655,698) (288,654) (3,253,101) (59,477) (662,975) (53,109) (564,727) (1,628,721) (18,382,593) (75,189) (1,156,003)

At end of year *********************** 31,026 256,739 484,778 5,330,767 238,036 2,415,826 28,324 267,023 23,231 249,692 28,127,915 296,930,068 563,080 7,970,574

Class A1$ Class A2$ Class B1$ Class B2$ Class C2$ Class I1$

US Flexible Income Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ***************** 2,035,230 20,726,807 3,510,086 43,252,798 8,462,975 82,571,909 5,962,371 66,970,929 343,669 4,120,784 101,973,901 1,035,256,300

Shares issued*********************** 318,835 3,337,280 2,248,304 29,458,212 569,406 5,975,221 288,662 3,612,579 66,852 856,977 4,616,721 48,583,219

Shares reinvested******************** 7,237 75,435 — — 21,904 228,140 — — — — 3,380,230 35,276,200

Shares redeemed ******************** (1,355,778) (14,154,170) (3,060,988) (39,688,342) (5,245,794) (54,713,109) (3,686,243) (45,684,088) (153,681) (1,970,107) (15,628,491) (162,512,388)

At end of year ********************** 1,005,524 9,985,352 2,697,402 33,022,668 3,808,491 34,062,161 2,564,790 24,899,420 256,840 3,007,654 94,342,361 956,603,331

Class A2$ Class B25 Class I25 Class B15

US Flexible Income Fund Shares USD Shares USD Shares USD Shares USD

At beginning of year****************** 10,103,235 139,669,665 706,757 6,384,113 4,657 52,382 14,551 149,827

Shares issued *********************** 3,416,186 64,351,724 40,411 722,573 — — 9,331 113,990

Shares reinvested ******************** — — — — — — 74 922

Shares redeemed ******************** (7,813,545) (145,490,146) (420,399) (7,589,243) — — (6,396) (81,035)

At end of year*********************** 5,705,876 58,531,243 326,769 (482,557) 4,657 52,382 17,560 183,704




US High Yield Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 6,635,019 60,374,382 5,204,135 60,485,353 20,411,625 193,267,496 5,605,262 64,676,975 816,203 9,300,685 19,898,370 183,178,507

Shares issued************************ 7,814,670 76,215,722 3,173,294 42,321,903 28,457,752 278,312,144 3,580,394 45,950,021 65,363 857,493 7,487,668 73,571,701

Shares reinvested ******************** 53,136 514,296 — — 58,882 571,308 — — — — 1,095,393 10,610,285

Shares redeemed********************* (5,517,761) (53,313,174) (4,516,260) (59,819,978) (11,492,622) (110,861,994) (4,375,394) (55,038,164) (336,367) (4,372,594) (6,413,673) (61,752,880)

At end of year *********************** 8,985,064 83,791,226 3,861,169 42,987,278 37,435,637 361,288,954 4,810,262 55,588,832 545,199 5,785,584 22,067,758 205,607,613


US High Yield Fund Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 4,869,439 60,838,412 894,085 11,955,601 1,207,241 (33,930,479) 384,575 4,532,024

Shares issued************************ 3,809,213 73,522,883 1,168,696 22,492,699 172,796 2,573,864 1,307,898 16,679,723

Shares reinvested ******************** — — — — — — — —

Shares redeemed********************* (4,125,053) (77,242,594) (748,480) (13,846,812) (399,276) (5,630,818) (353,435) (4,584,884)

At end of year *********************** 4,553,599 57,118,701 1,314,301 20,601,488 980,761 (36,987,433) 1,339,038 16,626,863


US Short-Term Bond Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 1,193,386 12,237,916 2,503,940 28,005,619 3,378,194 34,272,657 5,365,596 59,805,974 183,250 2,152,419 682 7,005

Shares issued************************ 678,443 7,046,277 1,459,273 18,259,940 788,499 8,188,981 657,549 7,823,266 23,295 281,660 2,797,806 29,151,502


Shares redeemed********************* (909,260) (9,448,280) (2,152,533) (26,898,992) (1,749,847) (18,175,770) (3,021,870) (36,000,156) (34,643) (418,504) (2,812,217) (29,123,174)

At end of year *********************** 973,088 9,945,236 1,810,680 19,366,567 2,430,530 24,428,051 3,001,275 31,629,084 171,902 2,015,575 3,719 216,197

Class A25 Class B25

US Short-Term Bond Fund Shares USD Shares USD

At beginning of year ****************** 1,775,549 25,209,878 448,509 2,720,227

Shares issued************************ 2,708,934 49,038,544 30,166 515,253

Shares reinvested ******************** — — — —

Shares redeemed********************* (2,750,664) (50,549,090) (211,431) (3,733,925)

At end of year *********************** 1,733,819 23,699,332 267,244 (498,445)

Class A25 Class B25 Class I25

Euro Reserve Fund Shares Euro Shares Euro Shares Euro

At beginning of year ****************** 428,884 45,222,183 19,570 1,933,083 48,784 4,928,943

Shares issued************************ 442,197 47,626,887 33,098 3,483,176 — —

Shares redeemed********************* (718,899) (77,334,428) (27,997) (2,946,777) — —

At end of year *********************** 152,182 15,514,642 24,671 2,469,482 48,784 4,928,943


US Dollar Reserve Fund Shares USD Shares USD Shares USD Shares USD Shares USD Shares USD

At beginning of year ****************** 1,176,615 1,176,719 776,193 81,710,843 43,143,505 43,145,001 78,352 7,925,292 5,545 570,867 27,293,003 27,292,957

Shares issued************************ 560,339 560,336 827,310 87,582,398 11,695,666 11,695,666 378,495 39,080,517 4,830 499,048 300,567,469 300,567,469


Shares redeemed********************* (1,370,555) (1,370,555) (1,167,732) (123,684,334) (34,046,699) (34,046,700) (302,790) (31,271,126) (10,191) (1,053,962) (326,506,406) (326,506,408)

At end of year *********************** 368,097 368,198 435,771 45,608,907 20,848,262 20,849,757 154,057 15,734,683 184 15,953 1,560,092 1,560,044


[This page intentionally left blank]



15. PORTFOLIO ANALYSIS

For the Year ended 31 December 2005

Global Fundamental Global Life US All Cap US Fundamental US StrategicBalanced Fund Equity Fund Sciences Fund Global Technology Fund Growth Fund Equity Fund Value Fund US Twenty Fund

Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of NetValue USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value

Transferable securities admitted to anofficial stock exchange listing********* 229,296,083 80.9 11,982,407 72.2 149,454,483 47.3 35,643,504 43.9 92,926,751 52.1 39,216,004 70.2 230,666,848 80.4 192,384,681 54.3

Transferable securities dealt in on anotherregulated market******************* 43,142,932 15.2 4,802,292 29.0 166,851,608 52.9 42,367,358 52.1 85,091,784 47.7 14,621,920 26.1 41,872,337 14.6 111,493,233 31.4

Ancillary liquid assets***************** 12,200,000 4.3 300,000 1.8 3,100,000 1.0 3,600,000 4.4 1,600,000 0.9 1,100,000 2.0 19,800,000 6.9 50,500,000 14.2Total ****************************** 284,639,015 100.4 17,084,699 103.0 319,406,090 101.2 81,610,862 100.4 179,618,535 100.7 54,937,924 98.3 292,339,184 101.9 354,377,914 99.9

For the year ended 31 December 2004

Global Fundamental Global Life Sciences US All Cap US Fundamental US StrategicBalanced Fund Equity Fund Fund Global Technology Fund Growth Fund Equity Fund Value Fund US Twenty Fund

Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of NetValue USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value

Transferable securities admitted toan official stock exchange listing 275,655,142 71.0 21,671,337 73.7 182,889,264 57.1 61,145,243 57.4 109,024,072 69.5 32,681,178 82.6 270,365,356 68.4 206,035,834 66.7

Transferable securities dealt in onanother regulated market ****** 99,814,229 25.7 3,065,469 10.5 123,112,699 38.5 42,850,473 40.2 44,790,039 28.5 3,349,285 8.5 69,493,991 17.6 88,370,844 28.6

Ancillary liquid assets *********** 6,900,000 1.8 3,100,000 10.5 5,200,000 1.6 — — 1,000,000 0.6 500,000 1.3 57,900,000 14.6 10,500,000 3.4Total************************* 382,369,371 98.5 27,836,806 94.7 311,201,963 97.2 103,995,716 97.6 154,814,111 98.6 36,530,463 92.4 397,759,347 100.6 304,906,678 98.7

16. DIRECTORS’ REMUNERATION

Effective 10 June 2005, the Articles of Association were amended to provide that the Directors shall be entitled to a fee by wayof remuneration for their services at a rate to be determined from time to time by the Directors. The Directors have agreedthat the current aggregate amount of Directors’ remuneration in any one year may not exceed Euro 200,000. Directors’ feespaid up to 31 December 2005 were US$153,229 (approximately Euro 115,012) (2004 — US$50,750 (approximately GBP26,436)).

* This Fund was terminated on 31 May 2005 and its approval revoked by the Financial Regulator on 28 June 2005. The information for this Fund is up to the date of termination.



US Risk ManagedUS Venture Fund US Value Fund* Core Fund US Reit Fund US Flexible Income Fund US High Yield Fund US Short-Term Fund Euro Reserve Fund US Dollar Reserve Fund

Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of Net Market % of NetValue USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value Value USD Asset Value

24,405,691 28.2 — — 1,849,130,189 89.7 327,693,126 98.2 210,356,387 23.4 42,855,620 4.4 1,724,690 2.7 — 0.0 — 0.0

63,699,118 73.3 — — 179,894,037 8.7 3,796,371 1.1 682,021,784 75.9 860,315,709 88.8 60,835,047 96.6 20,008,046 100.1 30,429,000 73.3200,000 0.2 — — 37,200,000 1.8 400,000 0.1 2,500,000 0.3 38,300,000 4.0 800,000 1.3 — 0.0 10,900,000 26.3

88,304,809 101.7 — — 2,066,224,225 100.2 331,889,498 99.4 894,878,172 99.6 941,471,328 97.2 63,359,737 100.6 20,008,046 100.1 41,329,000 99.6

US Risk Managed US Short-TermUS Venture Fund US Value Fund Core Fund US REIT Fund US Flexible Income Fund US High Yield Fund Bond Fund Euro Reserve Fund US Dollar Reserve Fund

Market Value % of Net Market Value % of Net Market Value % of Net Market Value % of Net Market Value % of Net Market Value % of Net Market Value % of Net Market % of Net Market Value % of NetUSD Asset Value USD Asset Value USD Asset Value USD Asset Value USD Asset Value USD Asset Value USD Asset Value Value Euro Asset Value USD Asset Value

48,796,432 28.1 1,363,133 62.7 487,933,894 84.5 350,544,970 97.1 257,615,012 20.8 18,239,913 1.8 20,756,101 15.3 — — — —

110,173,872 63.3 241,084 11.1 58,652,702 10.1 — — 951,541,842 77.0 885,461,131 91.0 107,674,926 79.2 24,302,548 100.2 82,700,912 97.1300,000 0.2 500,000 23.0 23,700,000 4.1 3,700,000 1.0 3,800,000 0.3 34,800,000 3.6 1,600,000 1.2 — — 2,300,000 2.7

159,270,304 91.6 2,104,217 96.8 570,286,596 98.7 354,244,970 98.1 1,212,956,854 98.1 938,501,044 96.4 130,031,027 95.7 24,302,548 100.2 85,000,912 99.8


Explanation of Charts and Tables

1. PORTFOLIO INVESTMENTS recoverable withholding tax. The net gain/loss on financialassets and liabilities at fair value through profit or loss are also

These schedules report the industry concentrations and types ofdisclosed. This incorporates realised and unrealised gains or

financial assets at fair value through profit or loss held in eachlosses.

Fund’s portfolio on the last day of the reporting period. Finan-cial assets are usually listed by type (Common Stock, Corporate The next section reports the expenses and expense offsetsBonds, US Government Obligations, etc.) and by industry classi- incurred by the Funds, including the advisory fee paid to thefication (Banking, Communications, Insurance, etc.). Investment Adviser, administration fees, shareholder servicing

expenses and printing and postage for mailing statements, finan-The fair value of each financial asset is quoted as the closing bid

cial reports and prospectuses. Also included are costs and com-price as of the last business day of the reporting period. The

missions on the purchase and sale of financial assets andvalue of financial asset denominated in currencies other than the

liabilities at fair value through profit or loss.base currency of the Fund are translated into the reporting cur-rency of the Fund. The next section lists out the finance costs associated with

redeemable ordinary shares. This is the distributions which were2. BALANCE SHEET paid during the period.

This is often referred to as the ‘‘Statement of Assets and Liabili-4. STATEMENT OF CHANGES IN NET ASSETS ATTRIBUTABLE TO

ties.’’ It lists the assets and liabilities of the Funds on the last dayHOLDERS OF REDEEMABLE ORDINARY SHARES

of the reporting period. The Funds’ assets are calculated byadding the value of the financial assets at fair value through This statement reports the increase or decrease in the Funds’ netprofit or loss owned, the receivable for securities sold but not assets attributable to holders of redeemable ordinary shares dur-yet settled, the receivable for dividends declared but not yet ing the reporting period. Changes in the Funds’ net assets arereceived on stocks owned and the receivable for Fund shares attributable to investment operations, dividends, distributionssold to investors but not yet settled. The Funds’ liabilities and capital share transactions. This is important to investorsinclude payables for securities purchased but not yet settled, because it shows exactly what caused the Funds’ net assets sizeFund shares redeemed but not yet paid and expenses owed but to change during the period.not yet paid. Additionally, there may be other assets and liabili-

The first section refers to the opening net asset value for theties such as forward currency contracts. Net assets attributable

Funds. ‘‘Capital Shares’’ refers to the money investors contributeto holders of redeemable ordinary shares are classified as

to the Funds through purchases or withdraw via redemptions.liabilities.

The Funds’ net assets will increase and decrease in value asinvestors purchase and redeem Shares from the Fund.3. INCOME STATEMENT

The next section summarises the information from the incomeThis statement details each Fund’s income, expenses, gains andstatement regarding changes in net assets because of the Funds’losses on securities and currency transactions, and appreciationinvestment performance.or depreciation of current portfolio holdings.

The reinvestment of dividends is included under ‘‘Capital ShareThe first section in this statement, entitled ‘‘Investment Income’’Transactions’’.reports the dividends earned from stocks and interest earned

from interest-bearing securities in the portfolio gross of non-


Statements of Changes in Composition of Portfolio(unaudited)

BALANCED FUND

Shares or Shares orPrincipal Principal

Major Purchases for the year ended 31 December 2005 Amount Cost Major Sales for the year ended 31 December 2005 Amount Proceeds

U.S. Treasury Note, 5.375%, due 15/2/31 9,905,000 $11,133,734.02 U.S. Treasury Note, 5.375%, due 15/2/31 9,710,000 $11,019,186U.S. Treasury Note, 4.25%, due 15/8/15 8,390,000 8,382,103.52 Time Warner, Inc. 430,015 7,729,501U.S. Treasury Note, 3.625%, due 30/4/07 6,415,000 6,414,181.05 Texas Instruments, Inc. 186,355 6,000,429U.S. Treasury Note, 4.00%, due 15/4/10 6,180,000 6,213,558.22 International Business Machines Credit Corp. 62,510 5,670,668Harrah’s Entertainment, Inc. 67,130 4,436,400.92 U.S. Treasury Note, 4.25%, due 8/15/15 5,170,000 5,102,687Wal-Mart Stores, Inc. 74,320 3,983,421.49 Freddie Mac 78,860 5,002,136Intel Corp. 168,650 3,845,512.76 Tyco International, Ltd. 160,935 4,916,545U.S. Treasury Note, 4.50%, due 15/11/10 3,695,000 3,705,787.51 Aetna, Inc. 48,300 4,811,271IAC InterActiveCorp 138,450 3,308,247.95 Best Buy Co., Inc. 94,925 4,712,668U.S. Treasury Inflation Indexed Bonds, 1.875%, due Marriott International, Inc. – Class A 71,560 4,676,749

15/7/15 3,210,000 3,269,786.20 Motorola, Inc. 209,430 4,256,902U.S. Treasury Note, 3.375%, due 15/2/08 3,265,000 3,237,403.13 Intel Corp. 168,650 4,182,662American International Group, Inc. 44,370 3,214,271.54 Berkshire Hathaway, Inc. – Class B 1,460 4,150,974Merrill Lynch & Co., Inc. 53,375 3,206,374.55 Citigroup, Inc. 92,070 4,148,425U.S. Treasury Note, 6.00%, due 15/8/09 2,855,000 3,102,756.44 Total S.A. (ADR) 15,315 3,974,126EnCana Corp. 62,330 3,098,845.78 Freddie Mac, 2.375%, due 15/4/06 3,890,000 3,852,988Federated Department Stores, Inc. 50,590 2,973,338.76 Starwood Hotels & Resorts Worldwide, Inc. 65,280 3,741,059Forest Laboratories, Inc. 69,190 2,857,879.52 Target Corp. 74,365 3,711,258American Express Co. 52,760 2,767,971.94 Freddie Mac, 1.875%, due 2/15/06 3,715,000 3,682,073U.S. Treasury Note, 4.00%, due 15/2/15 2,675,000 2,633,402.16 Wal-Mart Stores, Inc. 74,320 3,581,828Fannie Mae 53,705 2,517,908.12

GLOBAL FUNDAMENTAL EQUITY FUND



Willis Group Holdings, Ltd. 21,805 $780,880 Nippon Broadcasting System, Inc. 21,500 $1,232,885Missin Healthcare Food Services Co., Ltd. 43,771 704,062 Millea Holdings, Inc. 78 1,115,294Rentokil Initial PLC 226,197 654,261 Smiths Group PLC 57,500 934,092Hutchison Whampoa, Ltd. 65,000 566,963 Interpublic Group of Companies, Inc. 80,265 899,691Amazon.com, Inc. 14,615 521,132 McKesson Corp. 17,400 868,824Vodafone Group PLC 157,165 431,075 Synopsys, Inc. 40,765 676,184LVMH Moet Hennessy Louis Vuitton S.A. 5,483 409,700 NIPPONKOA Insurance Company, Ltd. 82,000 566,937Koninklijke (Royal) Philips Electronics N.V. 12,210 330,471 Health Management Associates, Inc. – Class A 21,525 544,229IAC InterActiveCorp 13,200 309,139 Mattel, Inc. 28,700 505,238Sony Corp. 7,200 293,335 Tenet Healthcare Corp. 50,570 480,258McKesson Corp. 8,590 266,096 FKI PLC 247,931 462,885EchoStar Communications Corp. 8,760 264,765 Rentokil Initial PLC 163,811 451,589JPMorgan Chase & Co. 6,810 248,472 Hutchison Whampoa International, Ltd. 45,000 421,727Ligand Pharmaceuticals, Inc. – Class B 41,345 228,812 Nestle S.A. 1,464 395,324Expedia, Inc. 9,500 189,126 Reed Elsevier N.V. 26,798 380,717NewAlliance Bancshares, Inc. 12,490 180,007 Heineken N.V. 11,357 353,932Esprit Holdings, Ltd. 26,000 178,844 Walt Disney Co. 13,215 335,602Next PLC 7,562 175,376 Vivendi Universal S.A. 10,102 322,150Liberty Global, Inc. – Class A 5,495 125,727 GlaxoSmithKline PLC 12,644 312,154Tyco International, Ltd. 4,005 103,790 Grupo Televisa S.A. (GDR) 4,715 289,342



GLOBAL LIFE SCIENCES FUND



Pfizer, Inc. 653,600 $15,740,214 Sanofi-Aventis 138,459 $11,383,385Guidant Corp. 174,270 12,151,581 Guidant Corp. 174,270 11,169,531United Therapeutics Corp. 237,442 11,895,667 Pfizer, Inc. 407,596 10,076,647Medtronic, Inc. 186,620 10,246,698 PacifiCare Health Systems, Inc. 121,355 9,204,988LifePoint Hospitals, Inc. 222,755 9,220,062 Amgen, Inc. 150,395 8,905,380Alexion Pharmaceuticals, Inc. 353,675 8,383,019 Novartis A.G. (ADR) 163,492 8,132,312Teva Pharmaceutical Industries, Ltd. 265,910 7,917,095 Biogen Idec, Inc. 144,107 6,978,356Centene Corp. 287,600 7,917,095 Caremark Rx, Inc. 141,100 6,683,261Syngenta A.G. 69,953 7,410,148 Kinetic Concepts, Inc. 113,075 6,465,032Cardinal Health, Inc. 119,785 6,989,473 IVAX CORP 278,207 6,420,107Abbott Laboratories 136,745 5,927,742 INAMED Corp. 91,880 5,967,943Dean Foods Co. 159,865 5,714,958 Genentech, Inc. 77,735 5,940,585Universal American Financial Corp. 241,395 5,608,420 Barr Pharmaceuticals, Inc. 117,372 5,694,859Roche Holding A.G. 44,333 5,387,081 Genzyme Corp. 89,565 5,684,280Dade Behring Holdings, Inc. 143,820 5,361,461 Schering-Plough A.G. 296,680 5,652,174Manor Care, Inc. 148,260 5,277,171 Zimmer Holdings, Inc. 67,890 5,469,862Medco Health Solutions, Inc. 102,260 5,161,114 United Therapeutics Corp. 84,735 5,441,303Patterson Companies, Inc. 121,720 4,960,291 Boston Scientific Corp. 167,950 5,333,162Merck & Co, Inc. 164,150 4,912,002 Roche Holding A.G. 47,470 5,149,378United Surgical Partners International, Inc. 126,030 4,901,449 Nektar Therapeutics 286,700 4,947,173

GLOBAL TECHNOLOGY FUND



Research In Motion, Ltd. 18,455 $1,245,117 Electronic Arts, Inc. 48,750 $2,793,463Juniper Networks, Inc. 51,620 1,228,184 Texas Instruments, Inc. 85,525 2,622,249Cypress Semiconductor Corp. 84,740 1,213,541 International Business Machines Credit Corp. 29,330 2,405,485SAP A.G. 6,394 1,088,909 Thomson 95,019 2,228,580Citrix Systems, Inc. 41,275 946,883 LG Electronics, Inc. 30,340 2,083,440Activision, Inc. 52,490 896,549 Hon Hai Precision Industry Company, Ltd. 414,000 1,999,457ADTRAN, Inc. 33,030 855,201 Corning Inc. 85,165 1,532,116Yahoo! Japan Corp. 159 778,854 Alcatel S.A. 127,930 1,526,056ASML Holding N.V. – New York Shares 42,000 734,278 Dell, Inc. 40,610 1,418,740Microsoft Corp. 27,730 729,839 Marvell Technology Group, Ltd. 33,755 1,346,478Adobe Systems, Inc. 17,330 669,752 Xilinx, Inc. 46,390 1,279,009Applied Materials, Inc. 37,215 653,941 Samsung Electronics Co., Ltd. 2,450 1,205,318Sony Corp. 16,200 618,134 Amazon.com, Inc. 30,605 1,184,252Hutchison Whampoa, Ltd. 66,000 603,243 Applied Materials, Inc. 64,145 1,125,499EMC Corp. 44,410 592,521 Nissan Motor Co., Ltd. 107,579 1,118,527QUALCOMM, Inc. 13,120 523,083 ATI Technologies, Inc. 70,675 1,083,195MEMC Electronic Materials, Inc. 26,640 505,077 Atos Origin S.A. 14,964 1,003,045Advanced Micro Devices, Inc. 22,460 452,205 Medtronic, Inc. 17,620 950,082Lam Research Corp. 14,555 434,210 UTStarcom, Inc. 92,385 936,005Autoliv, Inc. 9,300 430,399 Autoliv, Inc. 21,045 927,135


US ALL CAP GROWTH FUND



Teva Pharmaceutical Industries, Ltd. 118,280 $3,725,070 Abercrombie & Fitch Co. 93,145 $5,976,706Adobe Systems, Inc. 96,150 3,702,388 Transocean, Inc. 82,850 4,780,732eBay, Inc. 71,255 3,566,697 Starwood Hotels & Resorts Worldwide, Inc. 63,835 3,764,316Research In Motion, Ltd. 49,005 3,493,853 Maxim Integrated Products, Inc. 87,855 3,549,770SAP A.G. 79,870 3,396,350 Chicago Mercantile Exchange Holdings, Inc. 16,025 3,360,861Yahoo!, Inc. 88,180 3,174,017 Corning, Inc. 207,415 3,279,781Abercrombie & Fitch Co. 54,815 3,096,200 Total S.A. (ADR) 29,705 3,262,093Merrill Lynch & Co., Inc. 49,005 3,089,507 Amdocs, Ltd. 121,865 3,244,266Wal-Mart Stores, Inc. 60,220 3,006,107 Ball Corp. 78,960 3,154,824Whole Foods Market, Inc. 23,760 2,985,420 EOG Resources, Inc. 54,775 3,127,347Electronic Arts, Inc. 49,300 2,742,353 Reliant Energy, Inc. 243,705 3,112,299Boeing Co. 40,530 2,663,197 Lennar Corp. – Class A 52,425 3,105,201Pfizer, Inc. 102,880 2,652,998 Urban Outfitters, Inc. 52,715 2,982,403Microsoft Corp. 98,590 2,616,783 FedEx Corp. 34,635 2,909,062Procter & Gamble Co. 47,605 2,612,206 Invitrogen Corp. 41,660 2,781,809Transocean, Inc. 47,775 2,606,645 Wal-Mart Stores, Inc. 60,220 2,766,596Patterson Companies, Inc. 57,075 2,581,727 General Electric Co. 80,980 2,754,509Roche Holding A.G. 19,124 2,572,344 Pfizer, Inc. 102,880 2,722,772Dell, Inc. 66,610 2,527,909 GlobalSantaFe Corp. 76,810 2,686,031Nordstrom, Inc. 71,135 2,520,902 Kohls Corp. 47,285 2,577,620

US FUNDAMENTAL EQUITY FUND



Advanced Micro Devices, Inc. 103,220 $2,096,836 Marriott International, Inc. – Class A 24,520 $1,612,101Microsoft Corp. 74,920 1,957,827 Time Warner, Inc. 75,665 1,332,011Amerada Hess Corp. 14,455 1,498,483 Motorola, Inc. 67,370 1,329,634Citigroup, Inc. 29,870 1,466,532 Texas Instruments, Inc. 36,970 1,130,375Harrah’s Entertainment, Inc. 20,780 1,382,015 Freddie Mac 17,050 1,109,684Oracle Corp. 106,705 1,360,578 Starwood Hotels & Resorts Worldwide, Inc. 17,465 1,025,613Merrill Lynch & Co., Inc. 20,405 1,285,261 Intel Corp. 30,925 823,864General Electric Co. 33,425 1,192,655 Smiths Group PLC 47,941 821,325Procter & Gamble Co. 19,425 1,087,728 Aetna, Inc. 7,295 768,341Exxon Mobil Corp. 18,110 1,060,069 Tyco International, Ltd. 21,305 690,042British Sky Broadcasting Group PLC 104,567 1,017,277 Wal-Mart Stores, Inc. 14,185 688,872Suncor Energy, Inc. 20,834 999,057 Syngenta A.G. 31,885 681,383Tiffany & Co. 24,665 991,824 Roche Holding A.G. 5,747 651,040Yahoo!, Inc. 25,820 982,738 Exxon Mobil Corp. 11,340 648,763Aetna, Inc. 9,390 904,839 International Business Machines Credit Corp. 7,800 624,909Federated Department Stores, Inc. 14,060 858,525 Citigroup, Inc. 12,890 585,741Pfizer, Inc. 34,160 858,086 General Electric Co. 15,695 556,707Apache Corp. 13,815 843,290 Reckitt Benckiser PLC 17,580 552,506MGI Pharma, Inc. 43,195 828,167 Best Buy Co., Inc. 9,846 527,743Wal-Mart Stores, Inc. 14,185 752,773 3M Co. 6,270 502,790



US STRATEGIC VALUE FUND



Alliance Capital Management Holding LP 140,800 $6,399,495 Berkshire Hathaway, Inc. – Class B 3,242 $9,623,789DPL, Inc. 192,000 5,232,485 Omnicare, Inc. 165,000 7,098,587Anadarko Petroleum Corp. 59,000 4,540,410 B.J. Services Co. 139,000 6,372,930Mellon Financial Corp. 151,000 4,432,293 Cooper Cameron Corp. 93,000 5,715,314Waste Management, Inc. 146,000 4,278,636 Independence Community Bank Corp. 144,000 5,651,058Smurfit-Stone Container Corp. 262,000 3,820,083 Jacobs Engineering Group, Inc. 96,000 5,424,231Berkshire Hathaway, Inc. – Class B 1,342 3,804,016 Unocal Corp. 80,000 4,990,183Alberto-Culver Co. 85,000 3,759,838 Precision Drilling Corp. 73,500 4,627,526Precision Drilling Trust 88,000 3,539,853 Pioneer Natural Resources Co. 93,800 4,354,290Avon Products, Inc. 109,000 3,352,808 Trizec Properties, Inc. 217,000 4,327,572J.B. Hunt Transport Services, Inc. 167,000 3,258,405 W.W. Grainger, Inc. 67,700 4,307,563B.J. Services Co. 90,000 3,201,446 State Street Corp. 82,600 4,244,363Tech Data Corp. 88,000 3,153,977 Western Gas Resources, Inc. 97,000 4,210,293Union Pacific Corp. 47,000 3,142,273 USF Corp. 89,700 4,188,382IPC Holdings, Ltd. 97,300 3,133,342 The Macerich Co. 63,510 3,938,053Avocent Corp. 119,000 3,113,575 Intersil Corp. – Class A 231,000 3,835,243Norfolk Southern Corp. 74,000 3,069,347 Millicore Corp. 65,000 3,753,979Arthur J. Gallagher & Company 105,500 3,056,894 Arch Coal, Inc. 70,000 3,746,490Avaya, Inc. 267,000 3,045,465 Manpower, Inc. 83,000 3,725,588Tyco International, Ltd. 103,000 3,026,734 PNC Financial Services Group, Inc. 64,800 3,651,455

US TWENTY FUND



ConocoPhillips 184,025 $16,089,445 Bank of America Corp. 328,220 $14,103,687BP PLC (ADR) 142,695 8,965,295 Roche Holding A.G. 120,679 12,429,810Harrah’s Entertainment, Inc. 123,695 8,624,562 Kohl’s Corp. 236,045 11,412,678Apache Corp. 147,345 8,421,613 Energizer Holdings, Inc. 183,100 10,468,887Roche Holding A.G. 58,586 8,180,364 SLM Corp. 202,245 9,992,701Chevron Corp. 132,535 7,739,774 Goldman Sachs Group, Inc. 79,395 8,190,913Google, Inc. 24,780 7,553,623 Countrywide Financial Corp. 226,514 7,740,438Gilead Sciences, Inc. 165,185 7,399,539 Chevron Corp. 132,535 7,549,540Occidental Petroleum Corp. 85,325 6,163,533 3M Co. 94,655 7,528,296Exxon Mobil Corp. 80,895 4,939,029 eBay, Inc. 220,450 7,288,977Amerada Hess Corp. 39,020 4,569,328 Genentech, Inc. 108,875 7,070,639Syngenta A.G. 41,334 4,372,414 QUALCOMM, Inc. 184,975 6,603,577EOG Resources, Inc. 65,800 3,831,510 Amazon.com, Inc. 179,230 6,343,700Valero Energy Corp. 41,275 3,462,864 AutoZone, Inc. 71,140 6,140,374Research In Motion, Ltd. 46,265 3,208,826 Texas Instruments, Inc. 230,125 6,112,021Aetna, Inc. 37,000 3,075,849 UnitedHealth Group, Inc. 69,245 6,083,924EnCana Corp. 54,495 2,942,932 Electronic Arts, Inc. 96,615 5,642,268Peabody Energy Corp. 31,510 2,695,609 Nike, Inc. – Class B 58,090 5,077,535eBay, Inc. 60,955 2,659,188 Advance Auto Parts, Inc. 68,026 2,608,111Alcon, Inc. 17,485 2,057,825 Forest Laboratories, Inc. 53,040 2,214,683


US VENTURE FUND



ITC Holdings Corp. 122,545 $ 2,818,535 CB Richard Ellis Group, Inc. – Class A 127,155 $5,421,028CBOT Holdings, Inc. 34,145 1,843,830 CBOT Holdings, Inc. 34,145 3,733,884ValueVision International, Inc. – Class A 153,810 1,818,276 Euronet Worldwide, Inc. 134,945 3,672,806CoStar Group, Inc. 44,050 1,632,336 TALX Corp. 96,391 3,305,964Workstream, Inc. 386,180 1,513,903 ITC Holdings Corp. 122,545 3,279,043Optimal Robotics Corp. 70,200 1,399,355 iPayment Holdings, Inc. 58,385 2,356,740Golf Galaxy, Inc. 98,015 1,372,210 Telesystem International Wireless, Inc. 140,690 2,105,517Valueclick, Inc. 77,375 1,295,822 Quiksilver, Inc. 93,785 2,095,562Diamond Foods, Inc. 73,535 1,250,095 TIBCO Software, Inc. 269,040 2,054,520Securities Exchange, Inc. 49,000 1,229,531 Macromedia, Inc. 53,730 1,944,046World Fuel Services Corp. 38,950 1,207,450 LabOne, Inc. 47,970 1,941,296Western Alliance Bancorp 51,040 1,122,880 Golf Galaxy, Inc. 98,015 1,890,810Trimble Navigation, Ltd. 32,295 1,111,723 Centene Corp. 60,260 1,889,521Volcom, Inc. 37,885 1,109,487 Investors Financial Services Corp. 40,365 1,863,218Gymboree Corp. 79,270 1,091,825 Anteon International Corp. 39,095 1,862,320Arris Group, Inc. 89,370 1,091,601 Getty Images, Inc. 24,590 1,784,267Syniverse Holdings, Inc. 66,265 1,060,240 Restoration Hardware, Inc. 255,690 1,638,901F5 Networks, Inc. 22,775 1,057,581 Shuffle Master, Inc. 59,691 1,627,143TreeHouse Foods, Inc. 34,350 1,016,825 Labor Ready, Inc. 76,700 1,624,855MI Developments, Inc. – Class A 30,755 1,012,561 TTM Technologies, Inc. 149,005 1,586,962

US RISK MANAGED CORE FUND



Johnson & Johnson 431,800 $27,275,181 BB&T Corp. 478,000 $19,485,336Medco Health Solutions, Inc. 526,100 26,908,405 Regions Financial Corp. 436,900 14,003,591HCA, Inc. 481,400 23,985,914 U.S. Treasury Bills, 0.00%, due 22/12/05 13,000,000 12,934,097Franklin Resources, Inc. 245,600 19,530,888 eBay, Inc. 230,300 8,631,127BB&T Corp. 486,800 19,308,309 Pfizer, Inc. 297,100 8,142,286Altria Group, Inc. 270,700 19,036,315 United Parcel Service, Inc. 107,200 7,917,859Exxon Mobil Corp. 334,500 19,006,141 Amerada Hess Corp. 67,200 7,761,221Guidant Corp. 281,100 18,373,792 Textron, Inc. 102,000 7,746,452Procter & Gamble Co. 323,200 17,919,844 Avon Products, Inc. 206,600 7,713,914U.S. Treasury Bills, 0.00%, due 22/12/05 18,000,000 17,894,546 North Fork Bancorporation, Inc. 294,500 7,654,870Merck & Company, Inc. 608,200 17,490,809 FedEx Corp. 84,900 7,593,108General Electric Co. 495,900 17,236,369 National City Corp. 210,000 7,508,828Valero Energy Corp. 181,200 17,215,390 Norfolk Southern Corp. 185,900 7,401,096Public Service Enterprise Group, Inc. 271,900 16,805,720 Yahoo!, Inc. 195,700 6,962,567Cardinal Health, Inc. 275,200 16,734,533 Nucor, Corp. 122,000 6,561,760St. Paul Travelers Companies, Inc. 359,400 15,930,612 Burlington Resources, Inc. 99,300 6,431,369AT&T, Inc. 821,700 15,885,191 Synovus Financial Corp. 231,400 6,422,996Bank of America Corp. 348,100 15,613,516 Boeing Co. 94,900 6,251,962ConocoPhillips 241,200 15,443,756 First Data Corp. 153,900 6,149,975Regions Financial Corp. 458,400 15,190,885 Valero Energy Corp. 82,400 5,855,696



US REIT FUND



Starwood Hotels & Resorts Worldwide, Inc. 136,385 $7,429,218 AvalonBay Communities, Inc. 93,250 $7,226,162Equity Office Properties Trust 241,095 6,882,033 Public Storage, Inc. 106,904 6,645,216The Mills Corp. 98,980 5,134,224 Prentiss Properties Trust 164,095 5,699,278Vornado Realty Trust, Series H, 6.75% 44,645 3,872,954 Nationwide Health Properties, Inc. 246,070 5,300,912The St. Joe Co. 49,435 3,653,148 Kilroy Realty Corp. 117,785 5,202,551American Financial Realty Trust 247,220 3,621,773 SL Green Realty Corp. 87,085 4,812,588Alexander & Baldwin, Inc. 70,005 3,561,335 Catellus Development Corp. 166,205 4,579,508BioMed Realty Trust, Inc. 124,070 2,791,575 The Macerich Co. 68,880 4,528,320Pan Pacific Retail Properties, Inc. 43,915 2,479,165 Equity Office Properties Trust 113,145 3,846,982KKR Financial Corp. 100,000 2,400,000 Sun Communities, Inc. 102,290 3,609,698Vornado Realty Trust, Series I, 6.625% 100,000 2,365,000 Alexandria Real Estate Equities, Inc. 48,270 3,547,516Gramercy Capital Corp. 86,725 2,237,505 Equity Residential, Series N, 6.48% 140,200 3,452,803BNP Residential Properties, Inc. 130,050 2,099,043 Vornado Realty Trust, Series H, 6.75% 43,970 3,033,668Lasalle Hotel Properties, Series, 7.50% 80,000 2,000,000 Starwood Hotels & Resorts Worldwide, Inc. 40,000 2,577,283Extra Space Storage, Inc. 151,615 1,975,058 United Dominion Realty Trust, Inc. 105,275 2,508,177Public Storage, Inc., Series E, 6.75% 75,000 1,886,250 Acadia Realty Trust 121,990 2,237,351CenterPoint Properties Trust 42,650 1,871,057 CenterPoint Properties Trust 42,650 2,109,382HRPT Properties Trust 137,780 1,782,074 Pan Pacific Retail Properties, Inc. 29,000 1,941,255Digital Realty Trust, Inc., Series A, 8.50% 50,000 1,250,000 National Health Investors, Inc. 68,385 1,897,304General Growth Properties, Inc. 25,000 1,000,072 Equity One, Inc. 84,950 1,889,719

US FLEXIBLE INCOME FUND



U.S. Treasury Note, 4.00%, due 15/2/15 128,982,000 $125,206,713 U.S. Treasury Note, 4.00%, due 15/2/15 128,982,000 $125,975,191U.S. Treasury Note, 3.00%, due 15/2/08 66,725,000 65,233,779 U.S. Treasury Note, 3.00%, due 15/2/08 85,726,000 84,105,680U.S. Treasury Note, 4.125%, due 15/5/15 62,535,000 62,494,600 U.S. Treasury Note, 4.25%, due 15/11/14 60,125,000 60,093,509U.S. Treasury Note, 4.25%, due 15/8/15 50,605,000 50,250,957 U.S. Treasury Note, 5.00%, due 15/8/11 47,596,000 50,241,564U.S. Treasury Inflation Indexed Bond, 1.625%, U.S. Treasury Note, 3.50%, due 15/11/09 47,933,000 47,345,651

due 15/1/15 47,555,000 47,468,116 U.S. Treasury Note, 4.125%, due 15/5/15 47,237,000 47,117,512U.S. Treasury Bonds, 5.375%, due 15/2/31 37,670,000 42,197,807 U.S. Inflation Indexed Bond, 1.625%, due 15/1/15 46,105,000 46,153,128U.S. Treasury Note, 3.125%, due 31/1/07 36,460,000 36,145,922 U.S. Treasury Note, 4.25%, due 15/08/15 45,525,000 44,914,283Freddie Mac, 2.75%, due 15/8/06 35,785,000 35,437,815 U.S. Inflation Indexed Bond, 2.00%, due 15/1/14 34,510,000 36,607,621U.S. Treasury Note, 2.375%, due 15/8/06 31,290,000 30,852,287 Fannie Mae, 5.25%, due 15/1/09 31,455,000 33,032,653U.S. Treasury Note, 3.50%, due 15/11/06 28,980,000 28,767,322 U.S. Treasury Note, 2.75%, due 15/8/07 32,360,000 31,687,721U.S. Treasury Bonds, 6.25%, due 15/8/23 23,375,000 28,163,808 U.S. Treasury Bond, 5.375%, due 15/2/31 27,840,000 31,152,485U.S. Treasury Note, 4.50%, due 15/11/15 28,130,000 28,137,499 U.S. Treasury Bond, 2.375%, due 15/8/06 31,290,000 30,831,556U.S. Treasury Bonds, 6.25%, due 15/5/30 20,500,000 25,286,231 U.S. Treasury Note, 3.375%, due 15/9/09 29,275,000 28,863,238U.S. Treasury Note, 5.00%, due 15/8/11 22,125,000 23,104,564 U.S. Treasury Bond, 6.25%, due 15/8/23 18,965,000 22,562,421U.S.Treasury Note, 3.50%, due 15/15/09 23,268,000 23,040,335 U.S. Treasury Note, 3.875%, due 15/5/10 21,305,000 21,410,661U.S. Treasury Note, 8.875%, due 2/15/19 15,020,000 21,521,052 U.S. Treasury Bond, 7.25%, due 15/5/16 16,760,000 21,274,725U.S. Treasury Note, 3.875%, due 15/5/10 21,305,000 21,375,684 U.S. Treasury Bond, 7.50%, due 15/11/16 16,400,000 20,856,804U.S. Treasury Bonds, 7.50%, due 15/11/16 16,400,000 21,289,891 U.S. Treasury Note, 4.00%, due 15/4/10 20,118,000 20,197,515U.S. Treasury Note, 4.00%, due 15/4/10 20,118,000 20,202,499 U.S Treasury Note, 2.625%, due 15/11/06 20,320,000 20,032,984U.S. Treasury Note, 4.25%, due 15/11/14 18,700,000 18,752,763


US HIGH YIELD FUND



Dow Jones CDX NA HY, 8.25%, due 29/6/10 29,985,000 $29,679,813 Dow Jones CDX NA HY, 8.25%, due 29/6/10 29,985,000 $29,065,863TRAINS, 7.65%, secured notess, due 15/6/15 17,971,318 18,637,057 Dow Jones CDX NA HY, 7.75%, due 29/12/09 28,930,000 28,820,463Tenet Healthcare Corp., 9.25%, senior notess, TRAINS High Yield 2004, 8.21%, secured notes,

due 1/2/15 11,691,000 11,786,775 due 1/8/15 24,028,901 25,369,996Novelis, Inc., 7.25%, due 15/2/15 11,649,000 11,377,355 Novelis, Inc., 7.25%, due 15/2/15 12,915,000 12,121,161HEALTHSOUTH Corp., 7.625%, notes, due 1/6/12 10,659,000 10,354,438 Reliant Energy, Inc., 6.75%, due 15/12/14 11,831,000 11,558,573Trump Entertainment Resorts, Inc., 8.50%, secured Nalco Co., 8.875%, senior subordinated notes,

notes, due 06/01/15 9,756,000 9,653,215 due 15/11/13 10,300,000 10,909,394Dow Jones CDX NA HY, 7.75%, due 29/12/09 9,600,000 9,542,906 Crown Cork & Seal Financial PLC, 7.00%, companyGeneral Motors Acceptance Corp., 7.75%, notes, guaranteed notes, due 15/12/06 8,125,000 8,359,863

due 19/1/10 10,055,000 9,390,743 Georgia-Pacific Corp., 9.50%, debentures, due 1/12/11 6,825,000 8,121,750Nalco Co., 7.75%, senior notes, due 15/11/11 8,160,000 8,558,150 Centennial Cellular Operating Co., 10.125%, companyGraham Packaging Co., Inc., 9.875%, subordinated guaranteed note, due 15/6/13 6,850,000 7,903,875

notes, due 15/10/14 8,175,000 8,364,625 Forest Oil Corp., 8.00%, senior notes, due 15/12/11 7,090,000 7,710,900General Motors Acceptance Corp., 8.00%, bonds, Charter Communications Holdings LLC, 8.625%,

due 1/11/31 8,749,000 7,895,713 senior notes, due 1/4/09 9,530,000 7,610,227Virgin River Casino Corp., 9.00%, company guaranteed HEALTHSOUTH Corp., 7.625%, notes, due 1/6/12 7,129,000 6,821,150

notes, due 15/1/12 6,805,000 7,156,569 PolyOne Corp., 8.875%, senior notes, due 1/5/12 6,410,000 6,476,425TXU Corp., 6.55%, senior notes, due 15/11/34 6,900,000 6,864,634 United States Steel Corp., 9.75%, senior notes,Jarden Corp., 9.75%, company guaranteed notes, due 15/5/10 5,889,000 6,382,230

due 1/5/12 6,420,000 6,858,419 Graham Packaging Co., Inc., 9.875%, subordinatedDelphi Corp., 6.55%, due 15/6/06 7,515,000 6,655,306 notes, due 15/10/14 5,975,000 6,119,525Advanced Micro Devices, Inc., 7.75%, senior notes, NTL Cable PLC, 8.75%, senior notes, due 15/4/14 5,425,000 6,075,281

due 1/11/12 6,298,000 6,317,030 Crown Euro Holdings S.A., 9.50%, secured notes,Hexcel Corp., 6.75%, senior subordinated notes, due 1/3/11 5,000,000 5,527,250

due 1/2/15 6,250,000 6,250,000 TRW Automotive, Inc. 11.00%, senior subordinatedGoodyear Tire & Rubber Co., 9.00%, senior notes, note, due 15/2/13 4,632,000 5,352,415

due 1/7/15 5,846,000 5,803,610 Delphi Corp., 6.55%, due 15/6/06 7,515,000 5,330,413El Paso Corp, 7.42%, notes, due 15/2/37 6,390,000 5,785,700 Lazard Ltd. 179,750 5,231,712Charter Communications Holdings, 11.00%,

due 1/10/15 5,537,000 5,476,550

US SHORT-TERM BOND FUND



U.S. Treasury Note, 3.625%, due 15/6/10 5,405,000 $5,350,946 U.S. Treasury Note, 2.375%, due 31/8/06 13,110,000 $12,906,483U.S. Treasury Note, 3.625%, due 30/4/07 5,325,000 5,327,684 U.S. Treasury Note, 3.50%, due 15/11/06 7,385,000 7,333,319U.S. Treasury Note, 3.00%, due 15/11/07 5,395,000 5,325,038 U.S. Inflation Indexed Bonds, 3.375%, due 15/1/07 5,775,000 7,318,692U.S. Treasury Note, 3.875%, due 15/5/10 4,450,000 4,480,271 U.S. Treasury Note, 2.75%, due 31/7/06 6,380,000 6,316,112U.S. Treasury Note, 4.25%, due 31/10/07 4,100,000 4,087,746 U.S. Treasury Note, 3.625%, due 15/6/10 5,405,000 5,321,665U.S. Treasury Note, 3.00%, due 31/12/06 3,475,000 3,464,508 U.S. Treasury Note, 3.00%, due 15/11/07 5,330,000 5,255,671U.S. Treasury Note, 2.75%, due 15/8/07 3,465,000 3,384,097 Fannie Mae, 2.125%, due 15/4/06 4,555,000 4,485,855U.S. Treasury Note, 3.875%, due 15/9/10 3,365,000 3,343,771 U.S. Treasury Note, 3.875%, due 15/5/10 4,450,000 4,475,244Freddie Mac, 3.625%, due 15/9/06 3,285,000 3,279,481 U.S. Treasury Note, 1.875%, due 31/1/06 3,685,000 3,649,984U.S. Treasury Note, 4.125%, due 15/8/10 3,070,000 3,078,627 U.S. Treasury Note, 2.75%, due 15/8/07 3,560,000 3,475,256U.S. Treasury Note, 4.00%, due 15/4/10 2,840,000 2,855,202 U.S. Treasury Note, 2.50%, due 30/9/06 3,460,000 3,411,517U.S. Treasury Inflation Indexed Bonds, 3.625%, U.S. Treasury Note, 4.00%, due 15/4/10 2,840,000 2,850,541

due 15/1/08 1,680,000 2,153,662 U.S. Treasury Note, 3.125%, due 15/10/08 2,760,000 2,707,463U.S. Treasury Note, 3.75%, due 31/3/07 2,125,000 2,124,205 Tyco International Group S.A., 5.80%, due 1/8/06 2,550,000 2,601,977U.S. Treasury Note, 4.00%, due 15/3/10 2,025,000 2,024,367 TXU Corp., 6.375%, senior notes, due 15/6/06 2,305,000 2,342,996U.S. Treasury Note, 3.125%, due 15/10/08 2,010,000 1,960,213 Fannie Mae, 3.00%, due 15/8/07 2,395,000 2,332,040U.S. Treasury Note, 2.75%, due 31/7/06 1,865,000 1,850,030 U.S. Treasury Note, 3.00%, due 31/12/06 2,305,000 2,291,950U.S. Treasury Note, 3.375%, due 28/2/07 1,800,000 1,790,653 U.S. Treasury Note, 3.875%, due 15/9/10 2,190,000 2,162,300U.S. Treasury Note, 4.25%, due 15/10/10 1,780,000 1,768,084 U.S. Treasury Note, 4.00%, due 15/3/10 2,025,000 2,031,271U.S. Treasury Note, 2.375%, due 31/8/06 1,645,000 1,619,342 U.S. Treasury Note, 2.50%, due 31/10/06 1,990,000 1,955,630Genentech, Inc., 4.40%, due 15/7/10 1,610,000 1,609,871



EURO RESERVE FUND



ABN AMRO Bank N.V., 2.15%, 22/12/05 7,400,000 $7,400,000 No sales recorded during the yearBarclays Bank PLC, 1.80%, due 1/12/05 6,400,000 6,400,000Barclays Bank PLC, 1.90%, due 8/4/05 6,300,000 6,300,000Barclays Bank PLC,1.93%, due 7/4/05 6,200,000 6,200,000Barclays Bank PLC, 1.80%, due 25/4/05 6,100,000 6,100,000Northern Rock PLC, 2.03%, due 21/1/05 6,008,811 6,008,811Northern Rock PLC, 2.06%, due 14/1/05 6,006,406 6,006,406Barclays Bank PLC, 1.94%, due 1/4/05 6,000,000 6,000,000Barclays Bank PLC, 1.85%, due 1/11/05 5,900,000 5,900,000Barclays Bank PLC, 1.82%, due 4/5/05 5,900,000 5,900,000Barclays Bank PLC, 1.89%, due 21/4/05 5,900,000 5,900,000Barclays Bank PLC, 1.90%, due 4/4/05 5,800,000 5,800,000Barclays Bank PLC, 1.92%, due 5/4/05 5,800,000 5,800,000Barclays Bank PLC, 1.80%, due 22/4/05 5,800,000 5,800,000Barclays Bank PLC, 1.84%, due 3/5/05 5,800,000 5,800,000Barclays Bank PLC, 1.86%, due 29/4/05 5,800,000 5,800,000Barclays Bank PLC, 1.87%, due 28/4/05 5,800,000 5,800,000Barclays Bank PLC, 1.88%, due 14/4/05 5,800,000 5,800,000Barclays Bank PLC, 1.88%, due 15/4/05 5,800,000 5,800,000Barclays Bank PLC, 1.90%, due 11/4/05 5,800,000 5,800,000

US DOLLAR RESERVE FUNDShares or Shares orPrincipal Principal


Delaware County Authority, due 1/10/25 4,500,000 $4,500,000 Cornerstone Funding Corp., Series J, due 1/1/29 6,323,000 $6,323,000Alexander City Special Care Facilities Financial Des Plains, Illinois Industrial Development Revenue,

Authority, due 1/10/23 3,250,000 3,250,000 due 1/12/22 5,775,000 5,775,000Dickinson Press, Inc., due 1/8/18 2,995,000 2,995,000 Delaware County Authority College Revenue,Aurora, Colorado Centretech Metropolitan District due 1/10/25 4,500,000 4,500,000

General Obligation, Series B, due 1/12/17 2,765,000 2,765,000 Breckenridge Terrace LLC, due 1/5/39 3,690,000 3,690,000Toronto Dominion Bank, due 11/5/06 2,500,000 2,500,000 Cornerstone Funding Corp., Series B, due 3/1/28 3,301,000 3,301,000

Mesa Properties LLC, due 1/12/22 3,230,000 3,230,000Arbor View III LLC, due 1/8/28 2,765,000 2,765,000Cunat Capital Corp., due 1/12/25 2,765,000 2,765,000West Covina, California Public Financing Authority,

due 1/11/29 2,735,000 2,735,000First United Pentecostal, due 1/3/23 2,500,000 2,500,000California Infrastructure & Economic Development,

due 1/10/10 1,460,000 1,460,000California Statewide Communities Development,

due 15/10/34 1,455,000 1,455,000Memphis Health & Housing Facility Board, due 1/8/32 1,300,000 1,300,000California Infrastructure & Economic Development,

due 1/5/25 770,000 770,000California Infrastructure & Economic Development,

due 1/12/26 730,000 730,000Dickinson Press, Inc., 3.15%, due 1/8/18 495,000 495,000

1 0 0 J a n u s Wo r l d F u n d s P l c / 3 1 D e c e m b e r 2 0 0 5

Report of the Custodian

REPORT OF THE CUSTODIAN TO THE MEMBERS OF Memorandum and Articles of Association and the EuropeanJANUS WORLD FUNDS PLC Communities (Undertakings for Collective Investment inFOR THE PERIOD ENDED 31 DECEMBER 2005 Transferable Securities) Regulations, 2003, as amended; and

Brown Brothers Harriman Trustee Services (Ireland) Limited, in (b) otherwise in accordance with the provisions of thetheir capacity as Custodian of the Company, have enquired into Memorandum and Articles of Association and the Europeanthe conduct of the Company for the year ended 31 December Communities (Undertakings for Collective Investment in2005. Transferable Securities) Regulations, 2003, as amended.

In our opinion the Company has been managed throughout theyear under review in all material respects: Brown Brothers Harriman Trustee Services (Ireland) Limited

(a) in accordance with the limitations imposed on the 2 March 2006investment and borrowing powers of the Company by the


Independent Auditors’ Report

TO THE MEMBERS OF JANUS WORLD FUNDS PLC statements. We consider the implications for our report if we(THE ‘‘COMPANY’’) become aware of any apparent misstatements or material

inconsistencies with the financial statements. OurWe have audited the Company’s financial statements for the year

responsibilities do not extend to any other information.ended 31 December 2005 which comprise the Balance Sheet,the Income Statement, the Statements of Changes in Net Assets BASIS OF AUDIT OPINIONAttributable to Holders of Redeemable Ordinary Shares, the We conducted our audit in accordance with InternationalPortfolio Investment and the related notes. These financial Standards on Auditing (UK and Ireland) issued by the Auditingstatements have been prepared under the accounting policies set Practices Board. An audit includes examination, on a test basis,out therein. of evidence relevant to the amounts and disclosures in the

financial statements. It also includes an assessment of theRESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS

significant estimates and judgements made by the Directors inThe Directors’ responsibilities for preparing the Annual Report

the preparation of the financial statements, and of whether theand the financial statements in accordance with applicable law

accounting policies are appropriate to the Company’sand the accounting standards issued by the Accounting

circumstances, consistently applied and adequately disclosed.Standards Board and promulgated by the Institute of CharteredAccountants in Ireland (Generally Accepted Accounting Practice We planned and performed our audit so as to obtain all thein Ireland) are set out in the Report of the Directors. information and explanations which we considered necessary in

order to provide us with sufficient evidence to give reasonableOur responsibility is to audit the financial statements in

assurance that the financial statements are free from materialaccordance with relevant legal and regulatory requirements and

misstatement, whether caused by fraud or other irregularity orInternational Standards on Auditing (UK and Ireland). This

error. In forming our opinion we also evaluated the overallreport, including the opinion, has been prepared for and only

adequacy of the presentation of information in the financialfor the Company’s members as a body in accordance with

statements.Section 193 of the Companies Act, 1990 and for no otherpurpose. We do not, in giving this opinion, accept or assume OPINIONresponsibility for any other purpose or to any other person to In our opinion the financial statements give a true and fair viewwhom this report is shown, or into whose hands it may come in accordance with Generally Accepted Accounting Practice insave where expressly agreed by our prior consent in writing. Ireland, of the state of the Company’s affairs at 31 December

2005 and of its results for the year then ended; and have beenWe report to you our opinion as to whether the financialproperly prepared in accordance with the requirements of thestatements give a true and fair view in accordance withCompanies Acts, 1963 to 2005 and the European CommunitiesGenerally Accepted Accounting Practice in Ireland, and are(Undertakings for Collective Investment in Transferableproperly prepared in accordance with Irish statute comprisingSecurities) Regulations, 2003, as amended.the Companies Acts, 1963 to 2005 and the European

Communities (Undertakings for Collective Investment in We have obtained all the information and explanations weTransferable Securities) Regulations, 2003, as amended. We also consider necessary for the purposes of our audit. In our opinionreport to you whether in our opinion: proper books of account proper books of account have been kept by the Company. Thehave been kept by the Company; and whether the information Company’s Balance Sheet is in agreement with the books ofgiven in the Report of the Directors is consistent with the account.financial statements. In addition, we state whether we have

In our opinion the information given in the Report of theobtained all the information and explanations we considerDirectors is consistent with the financial statements.necessary for the purposes of our audit, and whether the

Company’s Balance Sheet is in agreement with the books ofaccount.

PricewaterhouseCoopersWe also report to you if, in our opinion, any information

Chartered Accountants and Registered Auditorsspecified by law regarding Directors’ remuneration and

DublinDirectors’ transactions is not disclosed and where practicable,

2 March 2006include such information in our report.

We read the other information contained in the Annual Report,and consider whether it is consistent with the audited financial


Directors and Other Information

Dominic Martellaro BISYS Fund ServicesBOARD OF DIRECTORS ADMINISTRATOR,Dennis Mullen (Ireland) LimitedSHAREHOLDER SERVICINGCarl O’Sullivan Brooklawn House

AGENT AND SECRETARYPeter Sandys Crampton Avenue/Hans Vogel Shelbourne Road

BallsbridgePricewaterhouseCoopers Dublin 4INDEPENDENT AUDITORSChartered Accountants IrelandandRegistered Auditors Brown BrothersCUSTODIAN AND TRUSTEEGeorge’s Quay Harriman TrusteeDublin 2 Services (Ireland)Ireland Limited

Styne HouseJanus International Upper Hatch StreetINVESTMENT ADVISERLimited Dublin 2CityPoint Ireland1 Ropemaker Street26th Floor Brooklawn HouseREGISTERED OFFICELondon EC2Y 9HT Crampton Avenue/United Kingdom Shelbourne Road

BallsbridgeJanus Capital Dublin 4SUB-INVESTMENT ADVISERManagement LLC Ireland151 Detroit StreetDenver, Colorado REGISTERED NO 29661080206,United States of VAT NO IE 8296610EAmerica

Arthur CoxLEGAL ADVISERSPerkins, Wolf, Earlsfort CentreMcDonnell Earlsfort Terraceand Company, LLC Dublin 2310 S. Michigan IrelandAvenueSuite 2600 Janus InternationalDISTRIBUTORChicago, Illinois Limited60604, CityPointUnited States of 1 Ropemaker StreetAmerica 26th Floor

London EC2Y 9HTEnhanced Investment United KingdomTechnologies LLC2401 PGA Boulevard J & E DavySPONSORING BROKERSuite 100 Davy HousePalm Beach Gardens, 49 Dawson StreetFlorida 33410, Dublin 2United States of IrelandAmerica

Old Mutual (US) TrustSECURITIES LENDING AGENTCompany175 Federal Street,11th FloorBoston, MA 02110United States of America


Directors and Other Information

Below is a list of the Funds’ Representatives /Paying Agents as of 31 December 2005.

Country Representative/Paying Agent Country Representative/Paying Agent

Austria Bank Austria Creditanstalt AG Italy 3. Banque Nationale de Paris – Paribas9991 / Asset Management GmbH Milan BranchA-1020 Wien, Via Ansperto 5,Obere Donaustraße 19 MilanAustria Italy

Belgium Citibank Belgium sa/nv Luxembourg Fortis Banque263g Boulevard General Jacques Luxembourg, S.A.1050 Brussels 50 Avenue J.F. KennedyBelgium L-2951

LuxembourgFrance Banque Nationale de Paris-Paribas

(France) The Netherlands Deutsche Bank AG, Amsterdam Branch3, rue d’Antin Herengracht 45075002 Paris 10171 CA AmsterdamFrance The Netherlands

Germany State Street Bank GmbH Spain AllFunds Bank S.A.Brienner Strasse 59 Calle Nuria, 5780333 Munich 28034 MadridGermany Spain

Hong Kong Janus International (Asia) Limited Switzerland Swiss Representative4201-03 Cheung Kong Center Fortis Banque (Suisse) S.A., Geneva2 Queen’s Road Address for inquiries:Central, Hong Kong Fortis Banque (Suisse) S.A.

Zurich BranchItaly 1. Banca Popolare Commercio E Rennweg 57

Industria S.p.A 8023 ZurichIndustria S.C.A.R.L SwitzerlandVia Moscova 3320121 Milano Swiss Paying AgentItaly Fortis Banque (Suisse) S.A.

Zurich BranchItaly 2. Banca Intesa S.p.A Rennweg 57

Piazza Paolo Ferrari n.10 8023 Zurich20100 Milano (MI) SwitzerlandItaly


PlcJanusWorldFunds

Janus International152 West 57th Street, 21st Floor

New York

NY 10019

United States

Tel +1 212 642 8383

Janus International LimitedCityPoint, 26 Floor

1 Ropemaker Street

London EC2Y 9HT

United Kingdom

Tel +44 20 7410 1900

Janus International Limited, Tokyo branchTokyo Ginko Koykai Building, 16 Floor

3-1 Marunouchi

1-Chome

Chiyoda-ku

Tokyo, 100-0005

Japan

Tel +813 3283 9820

Janus International Limited, Milan branchVia Rovello 18

20121 Milan

Italy

Tel +39 02 864425

Janus International (Asia) Limited4201-03 Cheung Kong Center

2 Queen’s Road

Central, Hong Kong

Tel +852 3121 7000

The Janus International brand stretches across various entities, most of which are listed above. 121-02-100 04-05

ANNUAL REPORT - GlobeNewswire

Documents