0001035449-11-000370.txt : 20110609 0001035449-11-000370.hdr.sgml : 20110609 20110609140056 ACCESSION NUMBER: 0001035449-11-000370 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 13 CONFORMED PERIOD OF REPORT: 20110331 FILED AS OF DATE: 20110609 DATE AS OF CHANGE: 20110609 EFFECTIVENESS DATE: 20110609 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNIFIED SERIES TRUST CENTRAL INDEX KEY: 0001199046 IRS NUMBER: 000000000 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-21237 FILM NUMBER: 11902846 BUSINESS ADDRESS: STREET 1: 2960 NORTH MERIDIAN STREET, STE. 300 CITY: INDIANAPOLIS STATE: IN ZIP: 46208 BUSINESS PHONE: 317-917-7000 MAIL ADDRESS: STREET 1: 2960 NORTH MERIDIAN STREET, STE. 300 CITY: INDIANAPOLIS STATE: IN ZIP: 46208 0001199046 S000016034 Dean Mid Cap Value Fund C000044154 Dean Mid Cap Value Fund 0001199046 S000016035 Dean Small Cap Value Fund C000044155 Dean Small Cap Value Fund N-CSR 1 dean033111ncsr.htm DEAN 033311 NCSR dean033111ncsr.htm
UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION
 
WASHINGTON, D.C.  20549
 
 
 
FORM N-CSR
 
 
 
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
 
INVESTMENT COMPANIES
 
Investment Company Act file number    811-21237 
 
Unified Series Trust                                                                                                                     
 
2960 N. Meridian Street, Ste.300, Indianapolis, In  46208                                                                                                                                
 
 
Christopher E. Kashmerick
Huntington Asset Services, Inc.
2960 N. Meridian Street, Ste. 300
Indianapolis, IN 46208                                                                
(Name and address of agent for service)
 
Registrant's telephone number, including area code: 317-917-7000
 
Date of fiscal year end:     03/31                                
 
Date of reporting period:   03/31/11                                
 
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public.  A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number.  Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609.  The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
 
Item 1.  Reports to Stockholders.
 
 
 

 
 
 
 
 
DEAN FUNDS
 


Small Cap Value Fund
Mid Cap Value Fund


Annual Report



March 31, 2011







Fund Adviser:

Dean Investment Associates LLC
3500 Pentagon Blvd., Suite 200
Beavercreek, Ohio 45431

Toll Free 1-888-899-8343
 
 
 

 
 
 
Dean Small Cap Value Fund

Management’s Discussion & Analysis – Fiscal Year Ending March 31, 2011


The Dean Small Cap Value Fund was up +20.5% net of fees for the twelve months ended March 31, 2011, compared with a +20.6% return for the Russell 2000 Value Index and a +25.8% return for the Russell 2000 Index.


Macro Factors Impacting Performance

In the past year, the market focused its attention on two factors: growth and beta.   Those companies with the highest long-term growth rates and the highest volatility had the strongest performance. This point is best illustrated by comparing the Russell 2000 Value’s +20.63% return relative to the Russell 2000 Growth’s +31.04% return for the trailing twelve months ended March 31, 2011. We faced a performance headwind as the market embraced growth and beta since we typically do not chase companies that have extremely high growth rates if we feel the market is overpaying for that growth.  We also typically prefer a lower than average volatility profile, which did not benefit us this past year.

We have had a slightly more “value” bent to our portfolio over the last year relative to our Russell 2000 Value benchmark. Given the degree to which value stocks trailed growth stocks during this period, our value bias has unmistakably hurt us in the short term.   However, we feel that over longer periods of time, valuation plays an important role in a portfolio’s performance, and we feel that our value bias will be rewarded over time.

We focus on high quality companies that generate good returns on capital, which are also trading at low valuations relative to our calculation of normalized earning power.  Focusing on high returning companies has a growth element to it since sustainable growth rate is equal to return on equity (ROE) multiplied by the retention rate.   This bias toward companies that generate good returns on capital helped us stay in the game throughout a year where high beta ruled the day and valuation factors did not matter as much as growth factors.

We often find good companies in neglected industries to be fertile ground for new stock ideas.  Consequently, we are frequently early in our sector allocation as we rotate out of sectors that are working and becoming expensive in favor of neglected areas of the market where we find attractive valuations.  This past year, especially the last few months, was a momentum driven market.  As we would expect in a momentum driven market, we suffered from negative sector allocation, in terms of attribution, relative to our benchmark.  However, we made up for this by having superior stock selection relative to our benchmark on an attribution basis.

Sector Performance (best/worst relative to benchmark)

The best performing sector for the twelve month period was Energy.  We benefited from both our overweight stance in the sector, as well as from our stock selection.  Last spring, we took advantage of fears about future exploration and production in the Gulf of Mexico stemming from the BP oil spill, as well as apprehension regarding a double dip recession, to add to our Energy names.  As the BP oil spill eventually came under control and fears of a double dip receded, our Energy names rallied.

The second best performing sector was Health Care.  While we were negatively impacted by our overweight in the Health Care sector, we more than made up for this through excellent stock picking.  As fears of “Obamacare” spread throughout the sector pressuring many Health Care stocks, we sifted through the rubble and found those companies that did not have direct exposure.  We found quite a few stocks where the “baby was thrown out with the bathwater,” meaning; high quality situations where the negative industry sentiment was not warranted for the specific stocks in which we invested.

The worst performing sector for the last twelve months was Consumer Discretionary.  Poor stock selection in this sector led to the underperformance.  We were plagued by owning cheap stocks where the fundamentals continued to deteriorate further and more rapidly than we had originally anticipated.  We have since exited many of these stocks where our thesis turned out to be incorrect.

The second worst performing sector was Materials.  While we maintained modest exposure to Materials over the past twelve months (approximately 5.9% on average), we have been underweight versus the benchmark in what was the second best sector behind Energy.  Furthermore, our largest weights in this sector are relatively low beta for a high beta sector.  Given the market’s appetite for beta this past year, our lower beta stocks lagged.  For example, most of our underperformance was a result of not owning mining companies, which are extremely cyclical businesses that typically have lower returns on capital over time and higher betas than the average stock.

Individual Securities Performance (best/worst absolute contributors)

The largest contributing company in the period was ADC Telecom (ADCT).  Swiss based Tyco Electronics acquired ADCT for $1.25 billion.  ADCT is a manufacturer of network infrastructure equipment used by telecom carriers, cable providers, broadcasters, and large enterprises.  The purchase price equated to $12.75 per share in cash and was a 44% premium to ADCT’s stock price before the announcement.  We held a 1.5% position in the ADCT common equity and a 2% position in an ADCT convertible bond prior to the acquisition.  We sold out of both securities on the acquisition announcement.

The second largest contributing stock was Berry Petroleum (BRY).  BRY is an independent oil and gas production company.  It has exposure to heavy crude oil in California, natural gas in east Texas, and light oil and natural gas in the Rocky Mountains.  BRY was a direct beneficiary of the over 25% increase in oil prices during the twelve month period, and the stock followed the upward movement in oil prices.  We continue to maintain a position in BRY.

The largest detracting stock in the period was EnergySolutions (ES).  ES provides technology based nuclear services to government and commercial customers in the United States and internationally.  It owns and operates the world’s largest low-level radioactive waste disposal facility.  We believe that this unique asset makes ES a leader in this niche business.  Unfortunately, it has been one disappointment after another with the company struggling to find its way.  In February 2010, the CEO resigned. In July, ES had to alter its international growth strategy when the U.S. passed a Bill that prevented importing foreign nuclear waste. And in September, the CFO left the company.  Meanwhile, ES discontinued its dividend.  Even though ES owns and operates a unique and valuable asset, there is too much risk and uncertainty with the business, so we exited our position.

The second largest detracting stock was Tekelec (TKLC).  Tekelec provides telecommunications network systems and software applications worldwide. In its first quarter 2010 earnings report, Tekelec beat Wall Street analysts’ expectations for the quarter, but it lowered its full year guidance below analysts’ expectations.  Part of the guidance reduction came from two acquisitions.  While being a good strategic fit and benefit in the long run, these acquisitions will be dilutive to earnings in the short run.  Investors sold the stock on the lowered guidance.  We initially held our weight in the stock and then took advantage of a bounce in price to exit the position as we believed the risk had increased in the company.


Current Positioning and Opportunities

We benefited in the second half of the year from announced merger and acquisition activity, as well as some rumored deals.  Some of the stocks that helped us in this regard were:  ADC Telecom (ADCT), BJ Wholesale (BJ), Whitney Holding (WTNY), NewAlliance (NAL), Beckman Coulter (BEC), Verigy (VRGY), Regis (RGS), International Coal Group convertible bond (ICO), and Commercial Metals (CMC).

We look for this trend to continue as large corporations and private equity firms have significant amounts of cash available to use for merger and acquisition activity.  We feel this could be favorable to our investment style, as the attributes we look for in companies, such as high free cash flow generation, high returns on capital, market dominance in niche businesses, and attractive valuations, are attributes that private equity buyers, as well as strategic buyers look for in an acquisition target.

Our largest overweight sectors relative to the benchmark are currently in the Information Technology and Consumer Staples sectors.  Technology spending is accelerating, and the market seems to doubt the persistence of the spending as many technology stocks are trading at low cash flow multiples.  Low beta/defensive sectors such as Consumer Staples are being neglected by the market, providing us an opportunity to find niche businesses whose stocks are being ignored.

We remain focused on the fundamentals of the companies we own, and the price we are paying for those fundamentals.  We are confident that a steadfast application of our proven and disciplined process will provide favorable results over time.

Thank you for your continued confidence in Dean.


 
 

 


Performance Summary


The performance quoted represents past performance, which does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted.  For more information on the Dean Small Cap Value Fund, and to obtain performance data current to the most recent month-end, or to request a prospectus, please call 1-888-899-8343.

You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing.  The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing.


 
 

 


This graph shows the value of a hypothetical initial investment of $10,000 in the Fund, the Russell 2000 Index and the Russell 2000 Value Index on March 31, 2001 and held through March 31, 2011.

The Russell 2000 Index and the Russell 2000 Value Index are widely recognized unmanaged indices of common stock prices and are representative of a broader market and range of securities than are found in the Fund’s portfolio. Individuals cannot invest directly in the Indices; however, an individual can invest in exchange-traded funds or other investment vehicles that attempt to track the performance of a benchmark index. The Index returns do not include expenses, which have been deducted from the Fund’s return. These performance figures include the change in value of the stocks in the index plus the reinvestment of dividends and are not annualized. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE OR PREDICT FUTURE RESULTS. Investment returns and principal values will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than the performance data quoted.  For more information on the Dean Small Cap Value Fund, and to obtain performance data current to the most recent month-end, or to request a prospectus, please call 1-888-899-8343.

 You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing.  The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing.

The Fund is distributed by Unified Financial Securities, Inc., Indianapolis, IN 46208, Member FINRA.


 
 

 
 
Dean Mid Cap Value Fund
(formerly Dean Large Cap Value Fund)

Important Changes to the Fund (effective March 31st)

As of March 31, 2011, the Fund changed its name from Dean Large Cap Value Fund to the Dean Mid Cap Value Fund and changed its capitalization range from large capitalization stocks to mid capitalization stocks.  While the capitalization range changes, the core investment process remains the same.  We are bottom-up investment managers, evaluating each company individually and building the portfolio one stock at a time.  We invest in high-quality businesses that are trading below fair value for transitory reasons.  The change in capitalization range provides the opportunity to invest in mid capitalization stocks which are less efficiently priced than the large cap segment of the market.


Management’s Discussion & Analysis – Fiscal Year Ending March 31, 2011

The Fund returned 7.4% for the 12 months ended March 31, 2011.  By comparison, the Russell 1000 Value Index returned 15.2% and the Russell 1000 Index returned 16.7%.


Macro Factors Impacting Performance

In the fiscal year ended March 31, 2011, most broad factors were unfavorable to our investment process and positioning.  Market capitalization was a significant factor influencing stock performance.  Small and mid capitalization stocks outperformed large caps almost two to one.  The Russell 2000 Index of small cap stocks and the Russell Midcap Index (smaller 800 constituents of the Russell 1000 Index) were up 25.8% and 24.3%, respectively, while the Russell 200 Index (largest 200 in the Russell 1000) was up only 13.6%.

Adding fuel to the fire, the most significant quantitative attributes influencing total returns during this past year were high growth estimates and high valuation.  Of course, growth is always preferred, but historically the market has tended to overpay for high growth expectations and, thus, it is not a primary driver of our stock selection.  We tend to buy lower priced stocks while being relatively agnostic toward growth expectations.  These broad factors were very unfavorable during the year just ended.


Sector Performance (best/worst relative to benchmark)

The best sector for the Fund in the year ended March 31, 2011 was Energy.  We have been significantly overweight in Energy since the benchmark reconstitution in June of last year.  We had a small overweight prior to reconstitution, then the index weight was reduced from approximately 17.5% to 11.5%.  We did not reduce our weight with the index change (we are benchmark aware, not benchmark driven).  With the sector up 45.2% in the period, our overweight was very profitable.  Energy outperformed largely because crude oil prices grew over 25% and refining margins improved dramatically.  The price of oil grew throughout the year due to the ongoing economic recovery and related demand improvement expectations, as well as increasing inflation fears.  Crude oil really turned higher in mid-February due to the unrest in Egypt and followed by Libya, as well as other parts in the Middle East.  We have taken some profits in the Energy sector, but remain overweight and bullish on the sector long-term.

The second best sector last year was Financials.  Within the Russell 1000 Value benchmark, the Financials sector was the worst performing group, with a gain of only 4.1%.  Our portfolio’s average weight was significantly below that of the benchmark index throughout the year.  The beginning of this past year marked approximately one year since the market trough in 2009.  In that first year, financial stocks rallied back almost 80% in the benchmark index and over 100% for those held in the Fund.  Given that rapid price movement, we felt the stocks had come too far too fast and, thus, we held a large underweight.  This turned out to be a good choice.

The worst sector in the year was Information Technology.  IT was a large allocation overweight versus the benchmark.  The Fund held a 9.7% average weight vs. 5.4% in the Russell 1000 Value.  Furthermore, our Fund holdings in the sector underperformed with an average decline of -14.9% vs. an average gain of +11.3% in the benchmark’s IT holdings.  We were early to buy Cisco Systems (CSCO), as the company missed earnings expectations for a second consecutive quarter and guided to lower earnings in 2011 based on lower margins in its dominant core routers and switches markets.  Its core end markets continue to grow nicely and, despite increasing competition, we are confident in Cisco’s future and feel the stock decline is far overdone.  Fear of weakness in PC sales weighed heavily upon Hewlett-Packard (HPQ), Microsoft (MSFT) and Intel (INTC).  The PC’s death has been greatly exaggerated, and we continue to have confidence in this space.

The second worst sector last year was Industrials.  Our positioning was far too defensive in this group, literally.  The portfolio held a significant overweight in Aerospace & Defense, as debate regarding the federal budget deficit became a larger concern for investors.  We feel the actual affect upon the defense companies will be significantly less than feared.  Nonetheless, several of our holdings underperformed the benchmark.  We reduced this overweight during the year due to better ideas elsewhere and our increased appreciation for the downside risks.


Individual Securities Performance (best/worst absolute contributors)

Our top two stocks were both Energy “super majors.”  With exposure to all products and industries along the energy value chain, as well as tremendous geographic diversification, we felt these stocks were the best risk/reward balance to capture the benefits of an increasingly energy hungry world economy, as well as the reasonable likelihood of inevitable political flare-ups that occur from time to time.

ConocoPhillips (COP) was the portfolio’s best contributor to performance this past year.  COP had a total return of 62.2% and an average weight over 4%.  COP is an international integrated energy company.  The company has continued to exceed expectations on assets sales, and the refining environment has improved, reversing a multi-year trend.    Commodity prices continue to strengthen with a weakening dollar and increasing inflation expectations.  COP has increased its dividend 32% and publicly stated its intention to continue to grow their ample dividend more than 10% per year.  We reduced our investment in COP during the year,  capturing some of the tremendous return.

Chevron Corp (CVX) was the portfolio’s second largest contributing stock in the year ended March 31, 2011.  CVX was another very large weight, averaging 3.7% compared to our average holding weight (approximately 2-2.5%).  CVX was up 46.7% in the year.  Chevron is also an integrated energy company and benefited from the aforementioned rise in crude oil prices, as well as better spreads in its refining and marketing businesses.  Recent exploration success in the Gulf of Mexico, West Africa, northwest Australia and the Gulf of Thailand demonstrates the firm’s potential for reserve growth.

Bank of America (BAC) was the Fund’s lowest contributing stock last year.  Bank of America was down 25%.  The primary drivers of the stock’s weakness were lower earnings expectations and fear of the magnitude of repurchase claims for mortgages sold during the housing bubble.  The company’s claims experience thus far is limited, and BAC did resolve most claims sold directly to government sponsored entities such as Freddie Mac.  Loan demand is not coming back with the same speed as the improving economy demonstrated elsewhere.  Additionally, the very low interest rate environment is contributing to low net interest margins.  Finally, financial reform changes, such as mandated reductions to overdraft and credit card fees, are impacting earnings expectations as the bank struggles to return to more normal operating conditions.  While we are displeased with the performance of this investment, there is some consolation in that the portfolio weight is far below the benchmark index weight.  (Some may view this negative contributor as a favorable “underweight” position.)  Being bottom up stock pickers, this is not our view but, nonetheless, it is a positive.  Despite a few additional bumps in the road this past year delaying significant earnings improvement, we are no less convinced that the bank’s earnings power and risk warrant a price significantly higher.

The Fund’s second largest detractor in the period was L-3 Communications (LLL).  L-3 is a leading supplier of secure, high data-rate communications systems and related defense electronics.  As discussed above, the Aerospace & Defense industry performed poorly last year due to fears of significant reductions in federal defense spending.  While we feel there is likely to be lower spending overall, we do not feel that all defense firms will fare equally.  L-3 Communications’ focus is communications and electronics.  There will be some reduction in demand due to the wind down of operations in Iraq and Afghanistan.  However, it will have a muted affect on L-3 due to the increasing importance of its products on the U.S. defense strategy.  Most of the defense cuts will come from major weapons platforms and space segments unrelated to L-3’s product lineup.


Current Positioning and Opportunities

On March 31, 2011, the Fund changed its investment strategy from large cap value to mid cap value.  While the investment style remains the same, the fund will focus on companies with a market capitalization similar to those listed with the Russell MidCap Value Index.  Shareholders were notified of the pending change in a mailing dated January 31, 2011.

The strategy of the fund was changed as we believe mid cap stocks offer many attractive characteristics as well as a better fit with our investment expertise.  Over the past 20 years (as of December 31, 2010), mid cap stocks have outperformed large cap stocks yet have exhibited less volatility than small cap stocks.  Mid cap companies tend to be more nimble and innovative than large cap companies providing higher levels of growth.  However, mid cap companies are often well established, well capitalized and diversified through geography, business lines or customers.

As of March 31, our largest overweight sectors in the Fund are Materials followed closely by Consumer Discretionary.  Both sectors have been impacted by concerns of rising energy prices.  For the Materials sector, the concern is primarily due to rising raw materials cost, while the concern for Consumer Discretionary is the impact on household spending patterns.  While we recognize these issues are valid in the short-term, rising economic activity will allow for pricing power and market share gains for the best of class over the long-term.

We also see opportunities within Health Care and Information Technology, thus we are modestly overweight both sectors.  We expect Health Care to benefit from less uncertainty around legislation as we move forward, and Information Technology to benefit from low cash flow valuations, improving economic activity, and spending on technology upgrades.

Thank you for your continued confidence in Dean.

Performance Summary

[
The performance quoted represents past performance, which does not guarantee future results.  The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance data quoted.  For more information on the Dean Mid Cap Value Fund, and to obtain performance data current to the most recent month-end, or to request a prospectus, please call 1-888-899-8343.

You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing.  The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing.


 
 

 
This graph shows the value of a hypothetical initial investment of $10,000 in the Fund, the Russell 1000 Index and the Russell 1000 Value Index on March 31, 2001 and held through March 31, 2011.

The Russell 1000 Index and the Russell 1000 Value Index are widely recognized unmanaged indices of common stock prices and are representative of a broader market and range of securities than are found in the Fund’s portfolio. Individuals cannot invest directly in the Indices; however, an individual can invest in exchange-traded funds or other investment vehicles that attempt to track the performance of a benchmark index. The Index returns do not include expenses, which have been deducted from the Fund’s return. These performance figures include the change in value of the stocks in the index plus the reinvestment of dividends and are not annualized. The returns shown do not reflect deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. THE FUND’S RETURN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE OR PREDICT FUTURE RESULTS. Investment returns and principal values will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than the performance data quoted.  For more information on the Dean Mid Cap Value Fund, and to obtain performance data current to the most recent month-end, or to request a prospectus, please call 1-888-899-8343.

 You should carefully consider the investment objectives, potential risks, management fees, and charges and expenses of the Fund before investing.  The Fund’s prospectus contains this and other information about the Fund, and should be read carefully before investing.

The Fund is distributed by Unified Financial Securities, Inc., Indianapolis, IN 46208, Member FINRA.

 
 

 
 

1As a percent of total investments.

The investment objective of the Dean Small Cap Value Fund is long-term capital appreciation and, secondarily, dividend income.


 
 

 

 
1As a percent of total investments.

The investment objective of the Dean Mid Cap Value Fund is long-term capital appreciation and, secondarily, dividend income.


PORTFOLIO HOLDINGS -  (UNAUDITED)

The Funds file a complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (the SEC) for the first and third quarters of each fiscal year on Form N-Q.  The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov.  In addition, the Funds’ Forms N-Q may be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C.  Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

ABOUT THE FUNDS’ EXPENSES -  (UNAUDITED)


As a shareholder of each Fund, you incur ongoing costs, including management fees, and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning and held for the six month period, October 1, 2010 to March 31, 2011.

Actual Expenses

The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.



Hypothetical Example for Comparison Purposes

The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.


Dean Small Cap Value Fund
Beginning Account Value October 1, 2010
Ending Account
 Value March 31, 2011
Expenses Paid During Period
October 1, 2010 – March 31, 2011*
Actual
$1,000.00
$1,199.65
$8.23
Hypothetical**
$1,000.00
$1,017.45
$7.54

*Expenses are equal to the Fund’s annualized expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the partial year period).
** Assumes a 5% return before expenses.

Dean Mid Cap Value Fund
Beginning Account Value October 1, 2010
Ending Account
 Value March 31, 2011
Expenses Paid During Period
October 1, 2010 – March 31, 2011*
Actual
$1,000.00
$1,151.89
$8.05
Hypothetical**
$1,000.00
$1,017.45
$7.54

*Expenses are equal to the Fund’s annualized expense ratio of 1.50%, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the partial year period).
** Assumes a 5% return before expenses.
 
 
 
 

 
 
DEAN FUNDS
       
DEAN SMALL CAP VALUE FUND
     
SCHEDULE OF INVESTMENTS
     
March 31, 2011
         
           
       
Fair
 
Shares
 
COMMON STOCKS - 91.61%
 
Value
 
           
   
Arrangement Of Transportation Of Freight & Cargo - 0.49%
     
  4,475  
Brink's Co./The
  $ 148,167  
               
     
Bituminous Coal & Lignite Surface Mining - 1.49%
       
  20,910  
Cloud Peak Energy, Inc. *
    451,447  
               
     
Calculating & Accounting Machines (No Electronic Computers) - 0.93%
       
  7,980  
Diebold, Inc.
    282,971  
               
     
Chemicals & Allied Products - 0.98%
       
  7,110  
Arch Chemicals, Inc.
    295,705  
               
     
Coating, Engraving & Allied Services - 1.74%
       
  43,920  
Handy & Harman Ltd. *
    527,918  
               
     
Computer Peripheral Equipment - 1.23%
       
  60,500  
Brocade Communications Systems, Inc. *
    372,075  
               
     
Converted Paper & Paperboard Products (No Containers/Boxes) - 1.94%
       
  17,915  
Bemis Company, Inc.
    587,791  
               
     
Crude Petroleum & Natural Gas - 3.12%
       
  10,830  
Berry Petroleum Co. - Class A
    546,373  
  23,550  
Penn Virginia Corp.
    399,408  
            945,781  
               
     
Drawing & Insulating Non Ferrous Wire - 0.96%
       
  6,680  
General Cable Corp. *
    289,244  
               
     
Electric Lighting & Wiring Equipment - 0.50%
       
  2,550  
Thomas & Betts Corp. *
    151,649  
               
     
Electric Services - 3.86%
       
  14,675  
Great Plains Energy, Inc.
    293,794  
  12,360  
Portland General Electric Co.
    293,797  
  16,105  
Unisource Energy Corp.
    581,874  
            1,169,465  
               
     
Electric Work - 0.91%
       
  8,935  
EMCOR Group, Inc. *
    276,717  
               
     
Fabricated Plate Work (Boiler Shops) - 2.17%
       
  23,915  
Global Power Equipment Group, Inc. *
    657,663  
               
     
Fats & Oils - 1.55%
       
  30,435  
Darling International, Inc. *
    467,786  
               
     
Finance Services - 0.98%
       
  22,240  
Fifth Street Finance Corp.
    296,904  
               
     
Financials - Diversified Investments - 1.44%
       
  18,200  
Solar Capital Ltd.
    434,616  
               
     
Fire, Marine & Casualty Insurance - 4.86%
       
  12,895  
Aspen Insurance Holdings Ltd.
    355,386  
  16,450  
HCC Insurance Holdings, Inc.
    515,050  
  15,755  
Platinum Underwriters Holdings, Ltd.
    600,108  
            1,470,544  
               
     
Heavy Construction Other Than Building Construction - Contractors - 1.40%
       
  55,545  
Great Lakes Dredge & Dock Co.
    423,808  
               
     
Hospital & Medical Service Plans - 1.47%
       
  11,920  
Healthspring, Inc. *
    445,450  
               
     
Ice Cream & Frozen Desserts - 0.46%
       
  13,975  
Dean Foods Co. *
    139,750  
               
     
Industrial Instruments For Measurement, Display, & Control - 1.03%
       
  9,390  
MKS Instruments, Inc.
    312,687  
               
               
 
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
         
DEAN SMALL CAP VALUE FUND
       
SCHEDULE OF INVESTMENTS - continued
       
March 31, 2011
           
               
         
Fair
 
Shares
 
COMMON STOCKS - 91.61% - continued
 
Value
 
               
     
Life Insurance - 1.94%
       
  19,100  
Delphi Financial Group, Inc. - Class A
  $ 586,561  
               
     
Mineral Royalty Traders - 0.96%
       
  5,525  
Royal Gold, Inc.
    289,510  
               
     
Miscellaneous - Electrical Machinery, Equipment & Supplies - 0.91%
       
  19,780  
Motorcar Parts of America, Inc. *
    276,524  
               
     
Miscellaneous - Fabricated Metal Products - 0.93%
       
  6,630  
Barnes Group Inc.
    138,434  
  2,950  
Crane Co.
    142,869  
            281,303  
               
     
Miscellaneous - Furniture & Fixtures - 1.75%
       
  9,725  
Kinetic Concepts, Inc. *
    529,234  
               
     
Miscellaneous - Industrial & Commercial Machinery & Equipment - 0.94%
       
  8,105  
Curtiss-Wright Corp.
    284,810  
               
     
Miscellaneous - Manufacturing Industries - 2.38%
       
  8,050  
Brady Corp. - Class A
    287,304  
  20,090  
Hillenbrand, Inc.
    431,935  
            719,239  
               
     
Motor Vehicle Parts & Accessories - 1.86%
       
  20,145  
Accuride Corp.*
    279,814  
  6,280  
Cooper-Standard Holding Inc. *
    284,170  
            563,984  
               
               
     
National Commercial Banks - 4.44%
       
  22,405  
First Financial Bancorp
    373,939  
  26,627  
First Horizon National Corp.
    298,489  
  38,605  
National Penn Bancshares, Inc.
    298,803  
  23,540  
TCF Financial Corp.
    373,344  
            1,344,575  
               
     
Natural Gas Distribution - 3.17%
       
  13,030  
AGL Resources, Inc.
    519,115  
  10,280  
New Jersey Resources Corp.
    441,526  
            960,641  
               
     
Oil & Gas Services - 1.00%
       
  7,360  
Superior Energy Services, Inc. *
    301,760  
               
     
Paper Mills - 1.68%
       
  18,885  
AbitibiBowater, Inc. *
    507,440  
               
     
Petroleum Refining - 1.11%
       
  14,460  
CVR Energy, Inc. *
    334,894  
               
     
Pharmaceutical Preparations - 1.76%
       
  46,300  
Prestige Brands Holdings, Inc. *
    532,450  
               
     
Plastics, Materials, Synthetic Resins & Non Vulcan Elastomers - 0.50%
       
  7,630  
Hexcel Corp. *
    150,235  
               
     
Plastics Products - 1.49%
       
  45,535  
Myers Industries, Inc.
    452,163  
               
     
Printed Circuit Boards - 1.41%
       
  40,390  
DDI Corp.
    426,922  
               
     
Radio & TV Broadcasting & Communications Equipment - 2.48%
       
  14,790  
EMS Technologies, Inc. *
    290,697  
  48,475  
SeaChange International, Inc. *
    460,512  
            751,209  
               
     
Retail - Apparel & Accessory Stores - 0.98%
       
  12,215  
Aeropostale, Inc. *
    297,069  
               
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
         
DEAN SMALL CAP VALUE FUND
       
SCHEDULE OF INVESTMENTS - continued
       
March 31, 2011
           
               
         
Fair
 
Shares
 
COMMON STOCKS - 91.61% - continued
 
Value
 
               
     
Semiconductors & Related Devices - 0.98%
       
  14,340  
Microsemi Corp. *
  $ 296,981  
               
     
Services - Computer Integrated Systems Design - 0.97%
       
  4,780  
CACI International, Inc. - Class A *
    293,110  
               
     
Services - Computer Processing & Data Preparation - 3.73%
       
  28,690  
CSG Systems International, Inc. *
    572,079  
  44,910  
Intersections, Inc.
    556,884  
            1,128,963  
               
     
Services - Equipment Rental & Leasing - 2.02%
       
  17,560  
Rent-A-Center, Inc.
    613,020  
               
     
Services - Management Consulting Services - 1.94%
       
  15,285  
FTI Consulting, Inc. *
    585,874  
               
     
State Commercial Banks - 4.52%
       
  18,885  
Associated Banc-Corp
    280,442  
  6,515  
Bank of the Ozarks, Inc.
    284,771  
  24,985  
Bryn Mawr Bank Corp.
    513,941  
  12,700  
Home Bancshares, Inc.
    288,925  
            1,368,079  
               
     
Steel Works, Blast Furnaces, Rolling Mills - 0.49%
       
  8,625  
Commercial Metals Co.
    148,954  
               
     
Surgical & Medical Instruments & Apparatus - 1.94%
       
  10,155  
Teleflex, Inc.
    588,787  
               
     
Surity Insurance - 0.51%
       
  17,390  
MGIC Investment Corp. *
    154,597  
               
     
Tires & Innertubes - 0.51%
       
  5,945  
Cooper Tire & Rubber Co.
    153,084  
               
     
Water Transportation - 1.86%
       
  9,425  
Tidewater, Inc.
    564,086  
               
     
Wholesale - Computer & Peripheral Equipment & Software - 2.68%
       
  24,850  
Ingram Micro, Inc. *
    522,596  
  5,665  
Tech Data Corp. *
    288,122  
            810,718  
               
     
Wholesale - Farm Product Raw Material - 1.73%
       
  10,760  
Anderson's, Inc./The
    524,227  
               
     
Wholesale - Groceries & Related Products - 1.57%
       
  14,390  
Core-Mark Holding Co., Inc. *
    475,590  
               
     
Wholesale - Medical, Dental & Hospital Equipment & Supplies - 0.96%
       
  8,905  
Owens & Minor, Inc.
    289,234  
               
     
TOTAL COMMON STOCKS (Cost $24,800,379)
    27,733,965  
               
     
REAL ESTATE INVESTMENT TRUSTS - 6.30%
       
               
  10,640  
CommonWealth REIT
    276,321  
  15,320  
Hospitality Properties Trust
    354,658  
  29,945  
Inland Real Estate Corp.
    285,675  
  42,405  
MFA Financial, Inc.
    347,721  
  18,221  
One Liberty Properties, Inc.
    274,773  
  23,730  
Redwood Trust, Inc.
    369,001  
               
     
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $1,914,058)
    1,908,149  
               
     
MONEY MARKET SECURITIES - 2.62%
       
  793,123  
AIM STIT-STIC Prime Portfolio - Class I, 0.12% (a)
    793,123  
               
               
     
TOTAL MONEY MARKET SECURITIES (Cost $793,123)
    793,123  
               
     
TOTAL INVESTMENTS (Cost $27,507,560) - 100.53%
  $ 30,435,237  
               
     
Liabilities in excess of other assets - (0.53)%
    (161,269 )
               
     
TOTAL NET ASSETS - 100.00%
  $ 30,273,968  
               
* Non-income producing securities.
       
(a) Variable rate security; the money market rate shown represents the rate at March 31, 2011.
       
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
         
DEAN MID CAP VALUE FUND
     
SCHEDULE OF INVESTMENTS
     
March 31, 2011
         
           
           
       
Fair
 
Shares
 
COMMON STOCKS - 93.80%
 
Value
 
           
   
Accident & Health Insurance - 1.54%
     
  5,845  
Unum Group
  $ 153,431  
               
     
Apparel & Other Finished Products Of Fabrics & Similar Materials - 1.42%
       
  4,965  
Carter's, Inc. *
    142,148  
               
     
Auto Controls For Regulating Residential & Commercial Environment - 1.27%
       
  2,635  
Ingersoll-Rand PLC
    127,297  
               
     
Books: Publishing or Publishing and Printing - 2.31%
       
  5,845  
McGraw-Hill Companies, Inc.
    230,293  
               
     
Cable & Other Pay Television Services - 1.45%
       
  5,935  
DISH Network Corp. - Class A *
    144,577  
               
     
Canned Fruits, Vegetable & Preserves, Jams & Jellies - 1.51%
       
  2,110  
JM Smucker Co./The
    150,633  
               
     
Chemicals & Allied Products - 1.79%
       
  2,110  
FMC Corp.
    179,202  
               
     
Construction, Mining & Materials Handling Machinery & Equipment - 2.18%
       
  3,315  
Dover Corp.
    217,928  
               
     
Crude Petroleum & Natural Gas - 6.32%
       
  6,415  
Forest Oil Corp. *
    242,679  
  1,980  
Newfield Exploration Company *
    150,500  
  2,460  
Noble Energy, Inc.
    237,759  
            630,938  
               
     
Cutlery, Handtools, & General Hardware - 2.85%
       
  2,330  
Snap-On, Inc.
    139,940  
  1,890  
Stanley Black & Decker, Inc.
    144,774  
            284,714  
               
     
Drawing & Insulating Nonferrous Wire - 1.58%
       
  3,645  
General Cable Corp. *
    157,828  
               
     
Electronic Connectors - 2.18%
       
  8,655  
Molex Inc.
    217,414  
               
     
Electric Services - 1.48%
       
  6,240  
Portland General Electric Co.
    148,325  
               
     
Fire, Marine & Casualty Insurance - 2.43%
       
  3,866  
Allstate Corp., The
    122,861  
  3,735  
W.R. Berkley Corp.
    120,304  
            243,165  
               
     
Food & Kindered Products - 1.51%
       
  5,535  
Flowers Foods, Inc.
    150,718  
               
     
Gas & Other Services Combined - 1.31%
       
  2,450  
Sempra Energy
    131,075  
               
     
Glass Containers - 1.39%
       
  4,615  
Owens-Illinois, Inc. *
    139,327  
               
     
Grain Mill Products - 2.19%
       
  4,225  
Corn Products International, Inc.
    218,940  
               
     
Investment Advice - 2.23%
       
  8,700  
Invesco Ltd.
    222,372  
               
     
Life Insurance - 4.59%
       
  6,635  
Delphi Financial Group, Inc.
    203,761  
  3,825  
Torchmark Corp.
    254,286  
            458,047  
               
     
Men's & Boys' Furnishings, Work Clothing, & Allied Garments - 1.26%
       
  1,275  
VF Corp.
    125,626  
               
               
 
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
         
DEAN MID CAP VALUE FUND
     
SCHEDULE OF INVESTMENTS - continued
     
March 31, 2011
         
           
           
       
Fair
 
Shares
 
COMMON STOCKS - 93.80% - continued
 
Value
 
           
   
Mining, Quarrying Of Non Metallic Minerals (No Fuels) - 1.19%
     
  1,275  
Compass Minerals International, Inc.
  $ 119,251  
               
     
Miscellaneous Fabricated Metal Products - 1.53%
       
  1,615  
Parker Hannifin Corp.
    152,908  
               
     
National Commercial Banks - 4.41%
       
  4,525  
Comerica, Inc.
    166,158  
  7,075  
FirstMerit Corp.
    120,699  
  17,270  
KeyCorp
    153,358  
            440,215  
               
     
Natural Gas Distribution - 4.74%
       
  5,185  
AGL Resources, Inc.
    206,570  
  7,830  
Atmos Energy Corp.
    267,003  
            473,573  
               
     
Natural Gas Transmission - 1.50%
       
  4,790  
Williams Comp. Inc.
    149,352  
               
     
Oil & Gas Field Machinery & Equipment - 2.33%
       
  3,166  
Baker Hughes, Inc.
    232,479  
               
     
Petroleum Refining - 1.27%
       
  1,729  
Murphy Oil Corp.
    126,943  
               
     
Paperboard Containers & Boxes - 1.46%
       
  4,010  
Sonoco Products Co.
    145,282  
               
     
Railroad, Line-Haul Operating - 1.39%
       
  1,760  
CSX Corp.
    138,336  
               
     
Refuse Systems - 1.35%
       
  4,475  
Republic Services, Inc.
    134,429  
               
     
Retail - Apparel & Accessory Stores - 1.48%
       
  6,080  
Aeropostale, Inc. *
    147,866  
               
     
Retail - Auto & Home Supply Store - 1.27%
       
  1,935  
Advance Auto Parts, Inc.
    126,975  
               
     
Retail - Eating Places - 2.08%
       
  4,220  
Darden Restaurants, Inc.
    207,329  
               
     
Retail - Family Clothing Stores - 1.68%
       
  3,735  
Nordstrom, Inc.
    167,627  
               
     
Semiconductors & Related Devices - 1.63%
       
  4,835  
Linear Technology Corp.
    162,601  
               
     
Services - Commercial Physical & Biological Research - 1.38%
       
  4,965  
Pharmaceutical Product Development, Inc.
    137,580  
               
     
Services - Management Consultant Services - 1.42%
       
  2,550  
Towers Watson & Co. - Class A
    141,423  
               
     
Services - Prepackaged Software - 2.31%
       
  8,350  
Synopsys, Inc. *
    230,878  
               
     
State Commercial Banks - 2.52%
       
  2,750  
Commerce Bancshares, Inc.
    111,210  
  2,771  
Northern Trust Corp.
    140,628  
            251,838  
               
     
Surgical & Medical Instruments & Apparatus - 3.58%
       
  2,110  
C.R. Bard, Inc.
    209,544  
  2,550  
Teleflex, Inc.
    147,849  
            357,393  
               
     
Wholesale - Chemicals & Allied Products - 1.58%
       
  2,725  
Ashland, Inc.
    157,396  
               
 
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
                 
DEAN MID CAP VALUE FUND
             
SCHEDULE OF INVESTMENTS - continued
           
March 31, 2011
                 
                   
                 
Fair
Shares
 
COMMON STOCKS - 93.80% - continued
     
Value
                   
   
Wholesale - Electronic Parts & Equipment - 2.39%
       
5,705
 
Arrow Electronics, Inc. *
         
 $         238,925
                   
   
Wholesale - Medical, Dental & Hospital Equipment & Supplies - 1.19%
   
3,690
 
Patterson Companies, Inc.
         
              118,781
                   
   
Wholesale - Misc. Durable Goods - 1.63%
         
2,505
 
Schnitzer Steel Industries, Inc.
       
             162,850
                   
   
X-Ray Apparatus & Tubes &  Related Irridation Apparatus - 1.70%
     
7,645
 
Hologic, Inc. *
         
             169,719
                   
   
TOTAL COMMON STOCKS (Cost $9,168,309)
     
         9,365,947
                   
   
REAL ESTATE INVESTMENT TRUSTS - 4.85%
       
7,910
 
BioMed Realty Trust, Inc.
         
             150,448
2,955
 
Digital Realty Trust, Inc.
         
             171,804
3,075
 
Health Care REIT, Inc.
         
             161,253
                   
   
TOTAL REAL ESTATE INVESTMENT TRUSTS (Cost $483,856)
   
            483,505
                   
   
MONEY MARKET SECURITIES - 0.40%
         
                          40,252
 
AIM STIT-STIC Prime Portfolio - Class I, 0.12% (a)
     
              40,252
                   
   
TOTAL MONEY MARKET SECURITIES (Cost $40,252)
   
              40,252
                   
   
TOTAL INVESTMENTS (Cost $9,692,417) - 99.05%
     
 $      9,889,704
                   
   
Other assets less liabilities - 0.95%
       
              95,234
                   
   
TOTAL NET ASSETS - 100.00%
       
 $      9,984,938
                   
* Non-income producing securities.
             
 (a) Variable rate security; the money market rate shown represents the rate at March 31, 2011.
     
 
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
           
STATEMENTS OF ASSETS & LIABILITIES
           
March 31, 2011
           
             
   
Small Cap
   
Mid Cap
 
   
Value Fund
   
Value Fund
 
             
ASSETS
           
Investment in securities:
           
  At cost
  $ 27,507,560     $ 9,692,417  
  At value
  $ 30,435,237     $ 9,889,704  
                 
Receivable for capital stock sold
  $ 575,605     $ 13,500  
Dividends receivable
    45,449       15,945  
Interest receivable
    40       8  
Receivable for securities sold
    -       9,122,749  
Prepaid expenses
    17,915       16,236  
   TOTAL ASSETS
    31,074,246       19,058,142  
                 
LIABILITIES
               
Payable for securities purchased
    756,837       9,045,006  
Payable to Administrator
    10,205       5,483  
Payable to Adviser (a)
    8,512       1,484  
Payable to trustees & officers
    1,798       1,797  
Accrued expenses
    22,926       19,434  
   TOTAL LIABILITIES
    800,278       9,073,204  
                 
NET ASSETS
  $ 30,273,968     $ 9,984,938  
                 
Net assets consist of:
               
Paid in capital
  $ 28,745,409     $ 14,618,262  
Accumulated undistributed net investment income
    43,017       50,577  
Accumulated net realized gains (losses) from security
               
  transactions
    (1,442,135 )     (4,881,188 )
Net unrealized appreciation (depreciation) on investments
    2,927,677       197,287  
                 
NET ASSETS
  $ 30,273,968     $ 9,984,938  
                 
Shares of beneficial interest outstanding (unlimited
               
  numbers of shares authorized)
    2,653,273       949,045  
                 
Net asset value, offering, and redemption price per share
  $ 11.41     $ 10.52  
                 
                 
                 
(a) See Note 4 in the Notes to the Financial Statements.
               
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
           
STATEMENTS OF OPERATIONS
           
For the Year Ended March 31, 2011
           
             
   
Small Cap
   
Mid Cap
 
   
Value Fund
   
Value Fund
 
             
Investment Income
           
  Dividends (Net of foreign tax withheld of $11 for Small Cap)
  $ 325,936     $ 243,732  
  Interest
    41,635       206  
  Total Income
    367,571       243,938  
                 
Expenses
               
  Investment advisory fees (a)
    216,369       105,137  
  Administration expenses
    94,261       47,034  
  Custody expenses
    23,833       9,833  
  Registration expenses
    21,705       20,613  
  Transfer agent expenses
    21,375       21,791  
  Legal expenses
    19,809       20,474  
  Audit expenses
    13,799       13,799  
  Trustees expenses
    9,512       9,513  
  CCO expenses
    7,701       7,700  
  Pricing expenses
    4,202       3,359  
  Miscellaneous expenses
    2,763       2,773  
  Insurance expenses
    1,971       1,971  
  Printing expenses
    1,565       910  
  24F-2 fees
    471       -  
  Total Expenses
    439,336       264,907  
  Fees waived and expenses reimbursed by Adviser  (a)
    (114,782 )     (107,202 )
  Net Expenses
    324,554       157,705  
                 
Net Investment Income
    43,017       86,233  
                 
Realized & Unrealized Gain (Loss)
               
  Net realized gains (losses) on security transactions
    3,940,824       721,843  
  Change in unrealized appreciation (depreciation) on investments
    513,830       (598,572 )
  Net realized & unrealized gains (losses) on investments
    4,454,654       123,271  
                 
Net increase (decrease) in net assets resulting from operations
  $ 4,497,671     $ 209,504  
                 
(a) See Note 4 in the Notes to the Financial Statements.
               
                 
                 
 
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
           
STATEMENTS OF CHANGES IN NET ASSETS
           
    Small Cap Value Fund  
             
   
Year
   
Year
 
   
Ended
   
Ended
 
   
March 31,
   
March 31,
 
   
2011
   
2010
 
Increase (Decrease) in Net Assets from:
           
Operations
           
   Net investment income (loss)
  $ 43,017     $ 242,701  
   Net realized gains (losses) from security transactions
    3,940,824       1,265,355  
   Change in unrealized appreciation (depreciation) on investments
    513,830       7,231,116  
Net increase (decrease) in net assets from operations
    4,497,671       8,739,172  
                 
Distributions
               
  From net investment income
    (249,880 )     (161,826 )
Decrease in net assets from distributions to shareholders
    (249,880 )     (161,826 )
                 
Capital Share Transactions
               
                 
   Proceeds from shares sold
    8,044,440       986,097  
   Reinvestment of distributions
    247,155       159,822  
   Amounts paid for shares redeemed
    (1,230,765 )     (319,340 )
Net increase (decrease) in net assets from capital share transactions
    7,060,830       826,579  
                 
Total Increase (Decrease) in Net Assets
    11,308,621       9,403,925  
                 
Net Assets
               
   Beginning of period
    18,965,347       9,561,422  
                 
   End of period
  $ 30,273,968     $ 18,965,347  
                 
Accumulated undistributed net investment income included in net assets
  $ 43,017     $ 249,986  
                 
Capital Share Transactions
               
   Shares sold
    764,572       123,453  
   Shares issued in reinvestment of distributions
    22,991       17,917  
   Shares redeemed
    (115,874 )     (41,622 )
   Net increase (decrease) in shares outstanding
    671,689       99,748  
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
           
STATEMENTS OF CHANGES IN NET ASSETS - continued
           
      Mid Cap Value Fund  
             
   
Year
   
Year
 
   
Ended
   
Ended
 
   
March 31,
   
March 31,
 
   
2011
   
2010
 
Increase (Decrease) in Net Assets from:
           
Operations
           
   Net investment income (loss)
  $ 86,233     $ 99,559  
   Net realized gains (losses) from security transactions
    721,843       (224,534 )
   Change in unrealized appreciation (depreciation) on investments
    (598,572 )     5,379,292  
Net increase (decrease) in net assets resulting from operations
    209,504       5,254,317  
                 
Distributions
               
   From net investment income
    (91,112 )     (128,145 )
Decrease in net assets from distributions to shareholders
    (91,112 )     (128,145 )
                 
Capital Share Transactions
               
   Proceeds from shares sold
    169,931       265,249  
   Reinvestment of distributions
    86,238       -  
   Amounts paid for shares redeemed
    (4,607,336 )     (395,251 )
Net increase (decrease) in net assets from capital share transactions
    (4,351,167 )     (8,019 )
                 
Total Increase (Decrease) in Net Assets
    (4,232,775 )     5,118,153  
                 
Net Assets
               
   Beginning of period
    14,217,713       9,099,560  
                 
   End of period
  $ 9,984,938     $ 14,217,713  
                 
                 
Accumulated undistributed net investment income included in net assets
  $ 50,577     $ 55,456  
                 
Capital Share Transactions
               
   Shares sold
    17,702       32,049  
   Shares issued in reinvestment of distributions
    8,589       12,813  
   Shares redeemed
    (514,976 )     (45,869 )
   Net increase (decrease) in shares outstanding
    (488,685 )     (1,007 )
 
 
See accompanying notes which are an integral part of these financial statements.
 

 
 
DEAN FUNDS
                                     
SMALL CAP VALUE FUND
                                     
FINANCIAL HIGHLIGHTS
                                     
Per Share Data for a Share Outstanding Throughout Each Period
                                     
                                       
                                       
     For the Years ended    
                                       
   
March 31,
     
March 31,
   
March 31,
     
March 31,
     
March 31,
   
   
2011
     
2010
   
2009
     
2008
     
2007
   
                                       
Net asset value, beginning of year
  $ 9.57       $ 5.08     $ 8.80       $ 15.71       $ 16.01    
                                                 
Income (loss) from investment operations:
                                               
   Net investment income (loss)
    0.02  
(b)
    0.12       0.08         0.10         (0.07 )  
   Net realized and unrealized gains (losses)
                                               
      on investments
    1.93  
(e)
    4.45       (3.68 )       (3.17 )       0.53    
Total income (loss) from investment operations
    1.95         4.57       (3.60 )       (3.07 )       0.46    
                                                 
Less distributions:
                                               
   From net investment income
    (0.11 )       (0.08 )     (0.10 )       (0.01 )       -    
   From net realized gains
    -         -       (0.02 )       (3.83 )       (0.76 )  
Total distributions
    (0.11 )       (0.08 )     (0.12 )       (3.84 )       (0.76 )  
                                                 
Net asset value, end of year
  $ 11.41       $ 9.57     $ 5.08       $ 8.80       $ 15.71    
                                                 
Total Return (a)
    20.47 %       90.14 %     -41.11 %       -21.57 %
(c)
    2.95 %
(c)
                                                 
Ratios and Supplemental Data
                                               
                                                 
Net assets, end of period
  $ 30,273,968       $ 18,965,347     $ 9,561,422