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Selected Holdings (as of 12/31/2007)Toei (Movie Production, Japan):
As of 12/31/2007, this product was held within the following funds: Utopia Growth Fund, Utopia Core Fund, Utopia Core Conservative Fund, and Utopia Yield Income Fund Holdings Reports**
**Holdings Reports as of 11/30/2008, holdings are subject to change Quicklinks |
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Haverty is a full-service specialty home furnishings retailer focused on the Midwestern and Southern regions and the middle to upper-middle price ranges. The housing slump has pressured all furniture retailers, but we believe that Haverty, with its strong and conservative management team, is well positioned to pick up market share as weaker competitors are forced to close. We began buying shares at a historical low .7x price/book value and expect management to continue its focus on creating long-term shareholder value. 
Toei falls into two secular themes with strong tailwind potential: Global entertainment content and Japan real estate. Toei is one of Japan’s major movie producers and theater operators with significant real estate and content library assets. We began accumulating Toei common stock at a significant discount to our estimate of the company’s tangible break-up value which includes the market value of 32%-owned Toei Animation and 16%-owned TV Asahi. Toei’s extensive content library offers an extensive base for future monetization, and its property portfolio (mainly cineplexes) should benefit from reflation. 
Fastweb is Italy’s largest alternative Internet Services Provider with over a million subscribers using its independent, integrated fiber network. Fastweb is now 82%-owned by Swisscom after the Swiss giant tendered in May 2007 at a price well above our purchase price. Having made significant investments in its fiber network, the company is now set to generate what we believe will be significant free cash-flow. This cash flow should support a strong dividend (a 10% dividend will be paid in October) and possible share buybacks. Investor concern over regulatory uncertainty (related to interconnection) and accelerated roll-out of additional fiber have pressured the share price lower and created an opportunity to buy shares at a significant discount to our estimate of fair value. 
IBA Health is an e-health software leader in Australia and New Zealand with a strong presence in other Asian markets. Its solutions automate critical areas of healthcare activity replacing inefficient and often ineffective manual processes. IBA’s recent acquisition of Britain’s ISoft creates a platform to expand its regional footprint into a global one. We bought shares well below our discounted cash flow model-derived estimate of fair value and at valuation levels well below US and European peers.
NEP owns an attractive Nordic commercial property portfolio that it is selectively harvesting to fund new acquisitions in the Baltic markets of Estonia, Latvia, Lithuania, and Russia. We bought shares at a significant discount to stated Net Asset Value with a prospective dividend yield of 8% this year. Good potential exists for growth in both NAV and dividends as management shifts the portfolio towards the faster growing Baltic region.
Petra has a two-prong business model. It offers customized global cocoa processing to major confectionary producers like Nestle, Mars, and Meiji via a worldwide footprint of processing plants, and it has Indonesia’s leading chocolate brand with >50% market share. Tailwinds are present for growth in both segments as global chocolate giants continue to shift to an asset light approach and outsource cocoa processing to specialists like Petra. In Indonesia, growing income levels and per capita chocolate consumption support the potential for Petra’s leading brands. We bought shares well below our estimate of fair value when share were trading at less than 13x our estimated earnings.
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