Normura Partners Funds, Inc

N-CSR 1 d620894dncsr.htm NORMURA PARTNERS FUNDS, INC Normura Partners Funds, Inc

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number: 811-01090

NOMURA PARTNERS FUNDS, INC.

(Exact Name of Registrant as Specified in Charter)

4 Copley Place, 5th Floor

CPH-0326

Boston, MA 02116

(Address of Principal Executive Offices)(Zip Code)

4 Copley Place, 5th Floor

CPH-0326

Boston, MA 02116

COPIES TO:

Nora M. Jordan, Esq.

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, NY 10017

(Name and Address of Agent for Service)

Registrant’s Telephone Number, including Area Code: 1-800-535-2726

Date of Fiscal Year End: September 30

Date of Reporting Period: October 1, 2012 – September 30, 2013

Item 1.

Reports to Stockholders.

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Annual Report

September 30, 2013

Nomura Partners Funds, Inc.

The Japan Fund

Asia Pacific ex Japan Fund

Global Equity Income Fund

Global Emerging Markets Fund

High Yield Fund

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IMPORTANT INFORMATION

The global equity markets have produced short-term returns for some sectors/asset classes that are not typical and may not continue in the future. Because of ongoing market volatility, performance may be subject to substantial short-term changes.

The views in this report are those of the managers of the series of the Nomura Partners Funds, Inc. (the “Funds”) as of September 30, 2013 and may not reflect their views on the date this report is first published or anytime thereafter and should not be considered investment advice. Statements concerning financial market trends are based on current market conditions, which will fluctuate. References to specific securities and issuers are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations to purchase or sell such securities. This report may contain discussions about investments that may or may not be held by the Funds as of the date of this report. Holdings and allocations are subject to change. There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for the long-term.

Investing includes risk, including possible loss of principal. International investing involves certain risks and increased volatility not associated with investing solely in the U.S. These risks include currency fluctuations, economic or financial instability, lack of timely or reliable financial information or unfavorable political or legal developments. These risks are magnified in the Funds which invest in emerging markets. Funds focusing on a single country, limited geographic areas and/or limited sectors may result in greater market volatility. Also, the Funds may invest in securities issued by smaller companies, which typically involves greater risk than investing in larger, more established companies. The Funds may utilize derivatives that may result in losses.

The Tokyo Stock Exchange Price Index (“TOPIX”) is an unmanaged capitalization weighted measure (adjusted in U.S. Dollars) of all shares listed on the first section of the Tokyo Stock Exchange. The MSCI All Country (AC) Asia Pacific ex Japan Index is an unmanaged free float-adjusted market capitalization index designed to measure the equity market performance in the Asia Pacific region excluding Japan. The MSCI World Index is an unmanaged free float-adjusted market capitalization-weighted index that measures the equity market performance of developed markets. The MSCI World Value Index is a free float-weighted index based on a parent index (MSCI World Index) which includes large and mid stocks across 24 Developed Markets countries. The MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization index which measures equity market performance of emerging markets. The MSCI Japan Index is a free float-adjusted index that includes every listed security in the Japanese market. The MSCI Total Return Indices (MSCI Daily Total Return Net Japan Index, MSCI Daily Total Return Net Europe Index, MSCI Daily Total Return Net Pacific ex Japan Index) measure the price performance of named markets with the income from constituent dividend payments. The returns of the indexes assume dividends are reinvested gross of withholding tax and, unlike the Funds’ returns, are not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission (“SEC”) requires to be reflected in the Funds’ performance. The Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. One cannot invest directly in an index.

Price-to-book ratio is the ratio of a stock’s latest closing price divided by its book value per share. Book value is the total assets of a company minus total liabilities. H Shares are shares of a company incorporated in the Chinese mainland that are listed on the Hong Kong Stock Exchange or other foreign exchange.

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.

(www.mscibarra.com)

Table of Contents


	Page
The Japan Fund
Performance Summary		1
Management’s Discussion of Fund Performance		3
Top Ten Holdings		3
Portfolio Summary		4

Asia Pacific ex Japan Fund
Performance Summary		6
Management’s Discussion of Fund Performance		7
Top Ten Holdings		7
Portfolio Summary		8

Global Equity Income Fund
Performance Summary		9
Management’s Discussion of Fund Performance		10
Top Ten Holdings		10
Portfolio Summary		11

Global Emerging Markets Fund
Performance Summary		12
Management’s Discussion of Fund Performance		13
Top Ten Holdings		13
Portfolio Summary		14

High Yield Fund
Performance Summary		15
Management’s Discussion of Fund Performance		16
Top Ten Holdings		16
Portfolio Summary		17

Schedule of Investments

The Japan Fund		19
Asia Pacific ex Japan Fund		25
Global Equity Income Fund		28
Global Emerging Markets Fund		33
High Yield Fund		36

Statements of Assets and Liabilities		50

Statements of Operations		52

Statements of Changes in Net Assets		54

Financial Highlights

The Japan Fund		56
Asia Pacific ex Japan Fund		59
Global Equity Income Fund		61
Global Emerging Markets Fund		63
High Yield Fund		65

Notes to Financial Statements		67

Report of Independent Registered Public Accounting Firm		82

Other Information		83

Shareholder Expense Example		85

Directors and Officers		88

Performance Summary (Unaudited) – The Japan Fund (the “Fund”)

September 30, 2013


Growth of a Hypothetical $10,000 Investment

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Growth of a Hypothetical $1,000,000 Investment

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Average Annual Total Return as of 9/30/13

	6 Month^*		1 Year		3 Year		Since Inception (12/29/08)^**
The Japan Fund — Class A (with load)		4.90%		23.48%		8.00%		7.55%
(without load)		11.31%		30.99%		10.14%		8.89%
The Japan Fund — Class C (with load)		9.89%		30.08%		9.23%		8.08%
(without load)		10.89%		30.08%		9.23%		8.08%
The Japan Fund — Class I		11.39%		31.27%		10.30%		9.13%
TOPIX		11.51%		30.74%		9.12%		7.85%

However, the advisor contractually agreed to waive a portion of its fees and/or reimburse expenses through at least January 28, 2014 to limit (net) operating expenses to 1.60% (excluding Distribution and Service (12b-1) Fees, interest expense and certain other expenses) for all classes. Otherwise, returns shown would have been lower. Shares held less than 30 days may be subject to a 2.0% redemption fee. Please call 800-535-2726 or visit us online at www.nomurapartnersfunds.com for the Fund’s most recent month end performance.

^*	Not annualized.

^**	Class A, C and I launched on December 29, 2008. Class S has been in existence since 1962 and is presented in a separate table.

¹	Represents a hypothetical investment of $10,000 in Class A shares after deducting the maximum sales charge of 5.75% ($10,000 investment minus $575 sales charge equals $9,425).

²	Represents a hypothetical investment of $10,000 in Class C shares without the CDSC deducted. A 1.00% CDSC is, however, applied to any redemption less than 12 months from the purchase date.


Nomura Partners Funds		The World from Asia			:				1

Performance Summary (Unaudited) (concluded) – The Japan Fund

September 30, 2013

Performance is historical and does not guarantee future results. Performance data assumes reinvestment of all dividend and capital gain distributions. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth less than their original cost. Performance figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. As stated in the Fund’s current prospectus, the Fund’s annual operating expense ratios (gross) is 1.77%. However, the advisor contractually agreed to waive a portion of its fees and/or reimburse expenses through at least January 28, 2014 to limit (net) operating expenses to 1.60% (excluding Distribution and Service (12b-1) Fees, interest expense and certain other expenses). Otherwise returns shown would have been lower. Shares held less than 30 days may be subject to a 2.0% redemption fee. Please call (800) 535-2726 or visit us online at www.nomurapartnersfunds.com for the Fund’s most recent month end performance.


Growth of a Hypothetical $10,000 Investment

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Average Annual Total Return as of 9/30/13*

	6 month^**		1 Year		3 Year		5 Year^*		10 Year^*
The Japan Fund, Inc. — Class S		11.44%		31.25%		10.27%		5.81%		4.05%
TOPIX		11.51%		30.74%		9.12%		5.51%		4.49%

^*	Prior to November 1, 2008, the Fund was advised by a different investment advisor and sub-advisors and operated under certain different investment strategies. Accordingly, the Fund’s historical performance may not represent its current investment strategies.

^**	Not annualized.


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Management’s Discussion of Fund Performance

(Unaudited) – The Japan Fund (the “Fund”)

Annual Review

The Fund’s performance for the year ended September 30, 2013 was 30.99% in terms of Net Asset Value (NAV) per share. The corresponding returns for the TOPIX index (the “benchmark”) with gross dividends reinvested and for the MSCI Japan Index with gross dividends reinvested were 30.74% and 31.67% in U.S. dollar terms, respectively. Therefore, the Fund outperformed its benchmark by 0.25% (25 basis points) while it has underperformed the MSCI Japan Index by 0.68% (68 basis points) during this period.

Over the past one year, the Japanese equity market has staged a substantial rally while the Yen has weakened significantly. The TOPIX (including dividends) has rallied by 64.9% in local currency terms, while the Yen has depreciated by 34.1% against the U.S. dollar and by 40.4% against the Euro. In our assessment, two factors have been driving the Japanese equity market. The first is that Japan’s economy has entered a cyclical recovery. The second factor has been the market expectations for “Abenomics”, which is based on a policy agenda that focuses on turning around the economy and ending deflation. The broad policy comprises three main measures that have been referred to as the “three arrows”: i.e., Aggressive Monetary Policy, Flexible Fiscal Policy and Growth Strategy. The Japanese equity market outperformed the global equity markets not only in local currency terms but also in U.S. dollar terms despite the significant Yen depreciation.

The Fund seeks long-term capital appreciation derived not only from value stocks but also from growth stocks. Considering this objective, Nomura Asset Management utilizes a “multi-manager” approach to managing the Fund’s investments. The Fund’s investments are initially allocated to three portfolio management teams who are responsible for the large cap value, large cap growth, and small cap blend strategies, respectively. Decisions regarding the allocation of assets to a particular style are made by a dedicated asset allocation committee. Through this style diversification, Nomura Asset Management aims to capture the broader investment opportunities as well as ensuring that the portfolio is well diversified.

In terms of the style allocation strategy, we have maintained the existing strategy throughout the review period. At the end of September, we allocated 37.6% of the equity position to large cap growth stocks, 52.3% to large cap value, and 10.1% to the small cap blend strategy. At the end of this review period, the total equity portfolio consisted of 295 stocks. All three investment style teams increased the number of stock holdings. Each investment style team has increased the diversification of its portfolio based on each team’s bottom-up approach when stock prices change significantly amid the bull market conditions over the past one year.

The five largest sector weightings are Industrials, Consumer Discretionary, Financials, Materials, and Information Technology. Within the top five sectors, the Fund held overweight exposures relative to the benchmark in the Industrials, Consumer Discretionary, and Materials sectors, while it held underweight exposures in the Financials and Information Technology sectors.


Top Ten Holdings


Ten Largest Equity Holdings
	at September 30, 2013
	1.	Sumitomo Mitsui Financial Group, Inc.	2.54%
	2.	Mitsubishi UFJ Financial Group, Inc.	2.51%
	3.	Seven & I Holdings Co. Ltd.	2.38%
	4.	Hitachi Ltd.	2.23%
	5.	Toyota Motor Corp.	2.20%
	6.	Bridgestone Corp.	2.16%
	7.	Nippon Telegraph and Telephone Corp.	2.00%
	8.	East Japan Railway Co.	1.77%
	9.	Mitsubishi Electric Corp.	1.74%
	10.	Honda Motor Co. Ltd.	1.65%

Portfolio holdings are subject to change. Holdings may combine more than one security from the same issuer and related depositary receipts and participating notes.

Percentages are based on net assets.

For more complete details about the Fund’s investment portfolio, see page 19. A quarterly Fund Summary and Portfolio Holdings list are available upon request.


Nomura Partners Funds		The World from Asia			:				3

Management’s Discussion of Fund Performance

(Unaudited) (continued) – The Japan Fund


Portfolio Summary


Asset Allocation
September 30, 2013
Equity Holdings			96.70%
Cash Equivalents			0.0%
Other Assets Less Liabilities			3.30%


Sector Diversification
September 30, 2013
Industrials			24.49%
Consumer Discretionary			22.47%
Financials			15.61%
Materials			9.23%
Information Technology			9.18%
Consumer Staples			6.04%
Telecommunication Services			4.69%
Health Care			3.65%
Utilities			0.72%
Energy			0.62%

Asset allocation and sector diversification are subject to change.

Percentages are based on net assets.

For reporting purposes, industry classifications are combined in this sector diversification chart. For industry classifications, please see the Schedule of Investments starting on page 19.

The Fund’s out-performance of 0.25% relative to the benchmark for the review period was the result of positive contributions both from the style allocation strategy and from stock selection. In terms of stock selection, Fuji Heavy Industries, Ltd. (1.69% of holdings/ Transportation Equipment), Bridgestone Corporation (2.24% of holdings/ Rubber Products) and F@N Communications Inc. (0.08% of holdings/ Services) added value, while LIXIL Group Corporation (0.46% of holdings/ Metal Products) and Nippon Telegraph and Telephone Corporation (2.07% of holdings/ Information & Communication) detracted from the relative performance.

Market Outlook

Japan’s economy bottomed out during the fourth quarter of 2012 and has since recovered at a strong pace. Japan’s real gross domestic product (GDP) growth rate in the first half of 2013 was around 4% (quarter-over-quarter, annualized), and is expected to be 1.9% year-over-year (yoy) in calendar year 2013, which is higher than growth in the U.S. of 1.7% and the Euro-zone of -0.4%. Public investment since implementation of the supplementary budget of 10.2 trillion Yen (USD $105 billion) and housing investment have contributed to the growth as well as private consumption.

The government decided to raise the consumption tax from 5% to 8% in April 2014. The tax hike of 3% is expected to increase the household burden by about 7.6 trillion yen (USD $77 billion), which is expected to have a negative impact of -0.64% on Japan’s GDP growth in fiscal year (FY) 2014. On the other hand, the government announced the outline of a new economic stimulus package of about 6 trillion Yen (USD $61 billion) to counter the adverse effects of the tax increase. The impact of these stimulus measures to GDP growth in FY2014 was estimated to be 0.55%. Therefore, Japan’s economy may continue to expand, with a 1.7% (yoy) GDP growth rate in calendar year 2014.

Earnings of Japanese companies are forecast to increase significantly. According to the latest forecast in September, recurring profits of major Japanese companies are likely to grow by 30% (yoy) for FY2013 ending March 31, 2014, and should rise by a further 10% (yoy) for FY2014. Total recurring profits in FY2014 are expected to rise beyond the previous peak of FY2007. Profit growth has also improved the cash flow of Japan’s Corporate sector. The ratio of cash flow to capital spending has risen to more than 1.4 times, reaching a historically high level. To some extent, this reflects the fact that Japanese companies have taken a cautious stance on capital investment. However, this situation has started to shift gradually, with private capital investment rising on a quarterly comparison basis in the 2^nd quarter of 2013 for the first time in six quarters. We expect the Corporate sector to increase investment in order to maintain or upgrade existing facilities and to construct new ones. The Japanese Corporate sector is already cash rich, while the “Growth Strategy” that the government has adopted and is ready to submit for implementation is expected to promote private investment over the medium-to long-term.

Equity valuations in the Japanese stock market remain close to their historically low range. The price-to-earnings ratio (PER) based on current


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Management’s Discussion of Fund Performance

(Unaudited) (concluded) – The Japan Fund

earnings forecasts for FY2014 is 14.2 times and the Price-to-book value ratio (PBR) is 1.31 times at the end of September 2013. In our assessment, Japan’s equity market valuations are still depressed and the growth potential of Japanese companies is not being discounted fairly due to the prolonged deflationary economic circumstances. The more convinced investors become that Japan can overcome deflation, the more fairly equity markets will discount the growth potential of Japanese companies. A return to normal equity valuations has just begun.

We believe the Japanese equity market is attractive from a long-term investment perspective, and in our judgment, there are many attractive stocks available in this market. We will maintain a well-diversified Fund and select the most attractive candidates from among the value stocks, growth stocks and small-capitalization stocks using our extensive equity research capabilities.

Past performance is not a guarantee of future results. Performance shown represents that of the Fund’s Class A shares. Performance does not reflect any applicable front end sales charge or redemption fees. If reflected, returns would have been lower.


Nomura Partners Funds		The World from Asia			:				5

Performance Summary (Unaudited) – Asia Pacific ex Japan Fund (the “Fund”)

September 30, 2013

Performance is historical and does not guarantee future results. Performance data assumes reinvestment of all dividend and capital gain distributions. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth less than their original cost. Performance figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. As stated in the Fund’s current prospectus, the Fund’s annual operating expense ratios (gross) are 4.71% for Class A, 5.43% for Class C, and 4.18% for Class I. However, the advisor contractually agreed to waive a portion of its fees and/or reimburse expenses through at least January 28, 2014 to limit (net) operating expenses to 1.50% (excluding Distribution and Service (12b-1) Fees, interest expense and certain other expenses) for all classes. Otherwise returns shown would have been lower. Shares held less than 30 days may be subject to a 2.0% redemption fee. Please call (800) 535-2726 or visit us online at www.nomurapartnersfunds.com for the Fund’s most recent month end performance.


Growth of a Hypothetical $10,000 Investment

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Growth of a Hypothetical $1,000,000 Investment

LOGO


Average Annual Total Return as of 9/30/13

	6 Month^*		1 Year		3 Year		Since Inception (12/29/08)
Asia Pacific ex Japan Fund — Class A (with load)		-12.27%		-6.91%		-1.21%		12.95%
(without load)		-6.93%		-1.25%		0.77%		14.37%
Asia Pacific ex Japan Fund — Class C (with load)		-8.31%		-1.93%		0.01%		13.51%
(without load)		-7.31%		-1.93%		0.01%		13.51%
Asia Pacific ex Japan Fund — Class I		-6.82%		-0.99%		1.00%		14.64%
MSCI AC Asia Pacific ex Japan Index		-0.86%		7.14%		3.91%		18.20%

^*	Not annualized.

¹	Represents a hypothetical investment of $10,000 in Class A shares after deducting the maximum sales charge of 5.75% ($10,000 investment minus $575 sales charge equals $9,425).

²	Represents a hypothetical investment of $10,000 in Class C shares without the CDSC deducted. A 1.00% CDSC is, however, applied to any redemption less than 12 months from the purchase date.


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Management’s Discussion of Fund Performance

(Unaudited) – Asia Pacific ex Japan Fund (the “Fund”)

Annual Review

Performance Summary

The Fund’s performance for the year ended September 30, 2013 was -1.25% in terms of Net Asset Value (NAV) per share. The corresponding return for the MSCI AC Asia Pacific ex Japan Index (the “benchmark”) was 7.14%. Therefore, the Fund underperformed the benchmark by 8.39% (839 basis points).

In terms of asset allocation, the overweight position in India and the underweight position in Australia both had a negative impact on the performance, especially towards the end of the period, given the shift in investor focus away from the developing countries to developed nations amid growing expectations that the Federal Reserve would begin tapering back its quantitative easing (QE3) asset purchases. Meanwhile, the overweight position in the Philippines contributed positively on the back of strong economic growth.

Stock selection had a negative impact in Korea, China, and Taiwan. In Korea, the overweight position in Hyundai Mobis worked against the Fund, as the share price weakened amid tougher competition with Japanese peers who benefit from weakness in the Japanese Yen. In China, the overweight position in Sinopharm Group Co., Ltd. had a negative effect as the share price weakened on the back of concerns over regulatory tightening. In Taiwan, the overweight position in Radiant Opto-Electronics Corporation was negative given the slowdown in sales momentum of Apple. Meanwhile, stock selection in Thailand contributed positively. The overweight position in Jasmine International PCL contributed to the relative performance through its strong earnings momentum.

Pacific Basin Strategy

After several years of strong growth in Asia without much of a hiatus or interim correction, it is perhaps reasonable to conclude that some of the Emerging Asia economies might have already seen the best of their growth phase. Therefore, some sort of consolidation — in both the private and public sectors — could be warranted in the medium term. Although financial conditions in the private corporate sectors are generally healthy, both the public and consumer sectors have become increasingly and substantially leveraged over the past decade; a trend that has accelerated since the Global Financial Crisis in 2008. It is therefore inconceivable to expect the pace of economic growth to continue indefinitely, backed by ever-higher leverage, without eventually causing harm to the economy.

Fortunately, the U.S. Federal Reserve’s decision to defer the phased withdrawal of its quantitative easing policy in September has offered some relief to these emerging countries. These countries have also instituted some changes themselves, such as higher interest rates, tighter financing, reduced subsidies and currency swap agreements with their own nationals and foreign countries to put themselves on a stronger footing, both in fiscal and monetary terms. These measures so far have helped to address


Top Ten Holdings


Ten Largest Equity Holdings
	at September 30, 2013
	1.	BOC Hong Kong Holdings Ltd.	4.66%
	2.	Sands China Ltd.	4.36%
	3.	Ryman Healthcare Ltd.	3.38%
	4.	Samsung Electronics Co. Ltd.	3.09%
	5.	Sinopharm Group Co.Ltd. — H Shares	3.08%
	6.	Tencent Holdings Ltd.	2.99%
	7.	PTT Global Chemical PCL	2.89%
	8.	Malayan Banking Bhd	2.84%
	9.	CSL Ltd.	2.78%
	10.	Hyundai Mobis	2.65%

Portfolio holdings are subject to change. Holdings may combine more than one security from the same issuer and related depositary receipts and participating notes.

Percentages are based on net assets.

For more complete details about the Fund’s investment portfolio, see page 25. A quarterly Fund Summary and Portfolio Holdings list are available upon request.


Nomura Partners Funds		The World from Asia			:				7

Management’s Discussion of Fund Performance

(Unaudited) (concluded) – Asia Pacific ex Japan Fund


Portfolio Summary


Asset Allocation
September 30, 2013
Equity Holdings			94.04%
Cash Equivalents			4.91%
Other Assets Less Liabilities			1.05%


Sector Diversification
September 30, 2013
Financials			24.57%
Consumer Discretionary			20.82%
Information Technology			16.67%
Health Care			12.24%
Industrials			9.07%
Materials			6.46%
Telecommunication Services			2.30%
Consumer Staples			1.79%
Energy			0.12%

Asset allocation and sector diversification are subject to change.

Percentages are based on net assets.

For reporting purposes, industry classifications are combined in this sector diversification chart. For industry classifications, please see the Schedule of Investments starting on page 25.

investors’ concerns somewhat and as a result, we have noticed much more stable regional currencies and equity markets in September.

The effect of this renewed stability may be slower economic growth rates going forward, with weaker consumer and government consumption likely to persist until inflation or current account deficits are brought lower. For some economies, structural changes are also necessary for them to regain competitiveness. Meanwhile, investors are unsettled by the political impasse in the U.S. over President Obama’s Affordable Care Act and the debt ceiling, resulting in the partial shutdown of the U.S. Government. Although this clearly adds to the list of uncertainties, we believe that any weakness in the markets would represent a buying opportunity. This is a political, binary, event-driven issue rather than an economic issue. We do not believe this shutdown will last for very long or expect it to cause significant damage to the economic growth trend. Moreover, amid such political uncertainty, it is very unlikely that the Federal Reserve will even consider any policy tapering just yet. In fact, the monetary authorities are more likely to try to offset the negative impact from this budget fallout. Hence, market liquidity could remain ample and we might even expect some reversal of liquidity flows back towards the Emerging Markets.

In terms of country allocation, we remain cautious about Indonesia. No doubt, the government and central bank have initiated some policies to appease investors by tightening liquidity to fight inflation, and they have also made some attempts to stabilize their respective currencies, but these measures are only likely to undermine domestic demand. Meanwhile, we will keep overweight position in Thailand and Philippines, due to relative strength in macroeconomic stability.

In the North Asia region, we have reduced the degree of our underweight position in China. China is still undergoing structural reform and the economy is not likely to enter a new cyclical upturn phase. For the next two months, however, the authorities will focus on ensuring a stable and benign domestic environment ahead of the Third Plenary Meeting in November. For Korea, we decided to ease the underweight exposure. Although the market lacks any specific catalysts right now, there is no stress or bubble in the domestic economy weighing on either the currency or interest rates. Demand-supply conditions are improving and the government is keen to jump-start the economy. Downward earnings revisions now seem to be almost behind us, and valuations in the Korean market appear cheap generally.


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Performance Summary (Unaudited) – Global Equity Income Fund (the “Fund”)

September 30, 2013


Growth of a Hypothetical $10,000 Investment

LOGO


Growth of a Hypothetical $1,000,000 Investment

LOGO


Average Annual Total Return as of 9/30/13

	6 Month^*		1 Year		3 Year		Since Inception (12/29/08)
Global Equity Income Fund — Class A (with load)		-1.43%		7.83%		7.96%		10.93%
(without load)		4.59%		14.37%		10.10%		12.32%
Global Equity Income Fund — Class C (with load)		3.17%		13.48%		9.25%		11.46%
(without load)		4.17%		13.48%		9.25%		11.46%
Global Equity Income Fund — Class I		4.79%		14.75%		10.37%		12.61%
MSCI World Index		8.87%		20.20%		11.82%		14.70%

However, the advisor contractually agreed to waive a portion of its fees and/or reimburse expenses through at least January 28, 2014 to limit (net) operating expenses to 1.25% (excluding Distribution and Service (12b-1) Fees, interest expense and certain other expenses) for all classes. Otherwise returns shown would have been lower. Shares held less than 30 days may be subject to a 2.0% redemption fee. Please call (800) 535-2726 or visit us online at www.nomurapartnersfunds.com for the Fund’s most recent month end performance.

^*	Not annualized.

¹	Represents a hypothetical investment of $10,000 in Class A shares after deducting the maximum sales charge of 5.75% ($10,000 investment minus $575 sales charge equals $9,425).

²	Represents a hypothetical investment of $10,000 in Class C shares without the CDSC deducted. A 1.00% CDSC is, however, applied to any redemption less than 12 months from the purchase date.


Nomura Partners Funds		The World from Asia			:				9

Management’s Discussion of Fund Performance

(Unaudited) – Global Equity Income Fund (the “Fund”)


Top Ten Holdings


Ten Largest Equity Holdings
	at September 30, 2013
	1.	Roche Holding AG	2.42%
	2.	Merck & Co., Inc.	2.07%
	3.	BP PLC	2.01%
	4.	JPMorgan Chase & Co.	1.92%
	5.	Johnson & Johnson	1.88%
	6.	Chevron Corp.	1.86%
	7.	Keppel Corp. Ltd.	1.84%
	8.	HSBC Holdings PLC	1.75%
	9.	Nucor Corp.	1.69%
	10.	The Boeing Co.	1.65%

Portfolio holdings are subject to change. Holdings may combine more than one security from the same issuer and related depositary receipts and participating notes.

Percentages are based on net assets.

For more complete details about the Fund’s investment portfolio, see page 28. A quarterly Fund Summary and Portfolio Holdings list are available upon request.

Annual Review

The Fund’s performance during the year ended September 30, 2013 was 14.37% in terms of Net Asset Value (NAV) per share. The corresponding returns for the MSCI World Index (the “benchmark”) and the MSCI World Value Index were 20.20% and 21.3%, respectively. Therefore, the Fund underperformed the benchmark and the MSCI World Value Index by -5.83% (583 basis points) and -6.93% (693 basis points), respectively.

The combination of regional/sector allocation and stock selection negatively contributed to the Fund’s relative performance during most of the review period. The Fund’s dividend focus strategy did not help during the most of review period. For the past three years, the Fund posted a return of 10.10% per annum, while the benchmark posted an annualized return of 11.82%.

The strongest region was Japan which rose 32.86% after years of underperformance. With “Abenomics”, quantitative and qualitative monetary easing by the Bank of Japan (BOJ) played a role in weakening the Japanese Yen and boosting stock prices, but also induced its bond market turmoil at one point ironically due to the easing measures being extremely radical. Europe continued to show a strong recovery with a 22.95% return during the review period. North America continued to register a solid performance with an 18.25% return, while the Pacific Basin ex Japan region made a sharp recovery toward the end of the review period, after suffering from the fund outflow from the region in the April-June quarter. Meanwhile, in a sharp contrast to double-digit advance of developed markets, emerging markets overall suffered a dismal 12 months with a mere 1.05% gain. (All performance figures are based on MSCI Total Return Net indices in US dollar)

The Fund is designed for investors seeking current income and long-term capital appreciation through a mix of investments that pursues above-average price stability. The Fund’s investment objective is to achieve current income and long-term capital growth through investing in relatively high dividend-paying stocks. With this investment objective in mind, we maintained a high equity ratio of nearly 97% of the Fund during the review period. At the end of September, the Fund consisted of 133 holdings in common stocks, American Depository Receipts (ADRs) and Real Estate Investment Trusts (REITs).

During the review period, the Fund retained its overweight in Health Care, but gradually reduced its overweight in Telecommunications and Utility stocks to almost neutral compared to the Fund’s benchmark weight. While we still like the fundamentals of stocks with stable dividend payment track record in those three sectors, we concluded that with increasing numbers of investors in pursuit of earnings quality and income, our holdings in those sectors became less attractive in the context of their historic valuation range. Meanwhile, the Fund increased its exposure to the Energy and Materials sectors in the first half of the review period on the back of strong yield support for share prices, and on the prospects of global economic recovery inducing higher commodity prices. The Fund’s sector allocation strategy, despite a result of individual stock selections, contributed negatively, as our overweight in Energy and Utilities underperformed the overall market, while underweight to Information Technologies (IT) and Financials continued to work against us


10		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Management’s Discussion of Fund Performance

(Unaudited) (concluded) – Global Equity Income Fund

throughout the review period. The Fund’s overall regional allocation strategy also suffered as its underweight in Japan made negative contributions particularly since the beginning of this calendar year.

Market Outlook

It seems that globally synchronized recovery is in progress, albeit with a modest tone, on the improving European and the Chinese economies. Monetary policy remains expansionary in the U.S. for a variety of reasons mentioned earlier, but especially postponing of tapering. Aside from the deplorable budget stalemate in Washington, fundamentals surrounding the economy and monetary conditions are generally sound in the United States. Japan has continued to show solid economic recovery. The Shinzo Abe administration continues to indicate its intention to pursue economic growth and restore fiscal soundness at the same time. As for its domestic demand, personal consumption is showing signs of a temporary slowdown after having rapidly accelerated since the end of last year, but housing investment is strong, as is public investment due to the execution of the supplementary budget which has begun to gain momentum. Also, signs of improvements have started to appear in the sentiment in the Corporate sector with respect to capital investments in Japan.

Overall, we remain positive toward equity investment versus bonds in the long-term. While pressure mounts on corporate margins due to signs that prices are bottoming out worldwide, corporate performance is expected to improve as sales gradually grow in conjunction with the recovery of the global economy. Given that U.S. interest rates are prone to rising, further multiple expansions are deemed unlikely, but share prices can be expected to rise to an extent commensurate with profit growth.

Our overall portfolio strategy for the remainder of the year remains largely unchanged, which is to identify potential investments from dividend yield perspective that have a solid dividend payment track record and prospects of dividend growth into the foreseeable future. However, we would like to pay closer attention to the balance between a company’s quality and its valuations with earnings recovery prospects, particularly in Europe and Japan. This strategy continues to rigorously deploy the combination of our proprietary quantitative screening and the bottom-up research capability of the Global Research Team.

Stock selection also remains a key to our regional allocation: we continue to favor Europe and the Asia ex Japan region. Despite the economic slowdown in some emerging countries, we continue to view many companies in those regions that have more geographically diversified earnings base, including faster growing emerging economies, while their valuations are relatively attractive compared to their industry peers in other regions. To fund those regions’ overweight positions, we remain underweight in the North America, mostly through Canada, and in Japan for the time being.


Portfolio Summary


Asset Allocation
September 30, 2013
Equity Holdings			97.24%
Cash Equivalents			2.14%
Other Assets Less Liabilities			0.62%


Sector Diversification
September 30, 2013
Financials			19.27%
Health Care			15.31%
Industrials			13.47%
Energy			10.17%
Consumer Staples			9.51%
Information Technology			7.08%
Materials			7.04%
Consumer Discretionary			6.59%
Telecommunication Services			4.79%
Utilities			4.01%

Asset allocation and sector diversification are subject to change.

Percentages are based on net assets.

For reporting purposes, industry classifications are combined in this sector diversification chart. For industry classifications, please see the Schedule of Investments starting on page 28.


Nomura Partners Funds		The World from Asia			:				11

Performance Summary (Unaudited) – Global Emerging Markets Fund (the “Fund”)

September 30, 2013

Performance is historical and does not guarantee future results. Performance data assumes reinvestment of all dividend and capital gain distributions. Current performance may be lower or higher than the performance data quoted. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth less than their original cost. Performance figures do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. As stated in the Fund’s current prospectus, the Fund’s annual operating expense ratios (gross) are 5.16% for Class A, 5.78% for Class C, and 4.86% for Class I. However, the advisor contractually agreed to waive a portion of its fees and/or reimburse expenses through at least January 28, 2014 to limit (net) operating expenses to 1.60% (excluding Distribution and Service (12b-1) Fees, interest expense and certain other expenses) for all classes.Otherwise returns shown would have been lower. Shares held less than 30 days may be subject to a 2.0% redemption fee. Please call (800) 535-2726 or visit us online at www.nomurapartnersfunds.com for the Fund’s most recent month end performance.


Growth of a Hypothetical $10,000 Investment

LOGO


Growth of a Hypothetical $1,000,000 Investment

LOGO


Average Annual Total Return as of 9/30/13

	6 Month^*		1 Year		3 Year		Since Inception (12/29/08)
Global Emerging Markets Fund — Class A (with load)		-8.98%		-6.53%		-1.87%		11.81%
(without load)		-3.44%		-0.81%		0.09%		13.21%
Global Emerging Markets Fund — Class C (with load)		-4.82%		-1.42%		-0.66%		12.37%
(without load)		-3.82%		-1.42%		-0.66%		12.37%
Global Emerging Markets Fund — Class I		-3.34%		-0.44%		0.34%		13.49%
MSCI Emerging Markets Index		-2.79%		0.97%		-0.33%		15.85%

^*	Not annualized.

¹	Represents a hypothetical investment of $10,000 in Class A shares after deducting the maximum sales charge of 5.75% ($10,000 investment minus $575 sales charge equals $9,425).

²	Represents a hypothetical investment of $10,000 in Class C shares without the CDSC deducted. A 1.00% CDSC is, however, applied to any redemption less than 12 months from the purchase date.


12		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Management’s Discussion of Fund Performance

(Unaudited) – Global Emerging Markets Fund (the “Fund”)

Annual Review

The Fund’s performance for the year ended September 30, 2013 was -0.81% in terms of Net Asset Value (NAV) per share. The corresponding return for the MSCI Emerging Markets Index (the “benchmark”) was 0.97%. Therefore, the Fund underperformed the benchmark by 1.78% (178 basis points).

This was ultimately a difficult period for emerging markets, with uncertainty over when the U.S. Federal Reserve would taper its asset-purchasing program weighing particularly heavily on markets in the developing world. From a sector perspective, Information Technology, Health Care and Consumer Staples led the way. Industrials and Consumer Discretionary were the main underperformers. At a country level, South Africa, Russia and Hong Kong performed best, while Brazil, India and Korea were the main laggards.

The main detractor from relative returns during the review period was Samsung Engineering Co., Ltd. We sold the Korean engineering specialist in the third quarter of 2013 after it had delivered a second set of disappointing results, including material write-downs due to cost overruns in Saudi Arabian and U.S. construction projects. The Peruvian gold miner Buenaventura also declined sharply after downgrading production at mines operated with its partner Newmont and the cancellation/postponement of expansion projects. Meanwhile, in India, leading infrastructure finance group IDFC reported slower loan growth in its fourth-quarter results, as the broader macro environment and infrastructure financing opportunities in India remain challenging. Brazilian oil major Petroleo Brasileiro also underperformed on concerns surrounding the company’s capital expenditure execution and the heightened risk of government intervention. Also in Brazil, homebuilder PDG Realty S.A. Empreendimentos Co.’s share price fell following the release of poor results. PDG Realty is also suffering cost overruns as it nears completion of construction on homes that it pre-sold during the 2008–10 period. We believe the long-term investment case remains intact, however, and maintain the position.

On the positive side, the top contributor was Russian food retailer Magnit OJSC. The company outperformed on sustained sales growth and an increase in new store openings. South Africa’s Aspen Pharmacare Holdings Ltd. was also strong and continued to expand its presence in other emerging markets with a number of acquisitions. Meanwhile, food retailer Controladora Comercial in Mexico delivered robust operating performance, despite a relatively weak economic backdrop, and a positive outlook on its guidance for 2013. Another notable positive contributor was Chinese PC manufacturer Lenovo Group Ltd., benefiting from confirmation of successful market-share gains in industry surveys, along with healthy results and anticipation of its smartphone division turning profitable. Elsewhere in Asia, SJM Holdings Ltd. was rewarded as gaming revenues in Macau continued to grow steadily.

Top Ten Holdings


Ten Largest Equity Holdings
	at September 30, 2013
	1.	Samsung Electronics Co. Ltd., GDR, 144A	6.92%
	2.	Taiwan Semiconductor Manufacturing Co. Ltd.	5.35%
	3.	Industrial & Commercial Bank of China Ltd. — H Shares	4.10%
	4.	CNOOC Ltd.	3.71%
	5.	Magnit OJSC, GDR, 144A	3.47%
	6.	Aspen Pharmacare Holdings Ltd.	3.41%
	7.	Hyundai Mobis	2.98%
	8.	MTN Group Ltd.	2.68%
	9.	Itau Unibanco Holding S.A.	2.58%
	10.	Genting Malaysia Bhd	2.43%

Portfolio holdings are subject to change. Holdings may combine more than one security from the same issuer and related depositary receipts and participating notes.

Percentages are based on net assets.

For more complete details about the Fund’s investment portfolio, see page 33. A quarterly Fund Summary and Portfolio Holdings list are available upon request.


Nomura Partners Funds		The World from Asia			:				13

Management’s Discussion of Fund Performance

(Unaudited) (concluded) – Global Emerging Markets Fund

Portfolio Summary


Asset Allocation
September 30, 2013
Equity Holdings			97.79%
Cash Equivalents			2.21%
Liabilities Less Other Assets			0.00%


Sector Diversification
September 30, 2013
Financials			25.56%
Information Technology			19.31%
Consumer Discretionary			13.18%
Telecommunication Services			11.19%
Energy			7.94%
Consumer Staples			7.28%
Materials			7.11%
Health Care			3.41%
Industrials			1.56%
Utilities			1.25%

Asset allocation and sector diversification are subject to change.

Percentages are based on net assets.

For reporting purposes, industry classifications are combined in this sector diversification chart. For industry classifications, please see the Schedule of Investments starting on page 33.

Market Outlook

Looking ahead, we remain confident on the potential inherent in the emerging-market universe — and, in particular, on the prospects for the Fund. The significant changes in the macroeconomic environment in the short term certainly have to be considered. But although they will present challenges, they will also create opportunities for the asset class and for individual companies. Concerning the Fund, our focus remains on constructing a robust portfolio driven by our fundamental stock insights while mitigating factor/thematic risk. The long-term investment case for emerging-market equities remains intact and the best way to harness the vast opportunity set on offer is through bottom-up, fundamental strategies such as ours.


14		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Performance Summary (Unaudited) – High Yield Fund (the “Fund”)

September 30, 2013


Growth of a Hypothetical $10,000 Investment

LOGO


Growth of a Hypothetical $1,000,000 Investment

LOGO


Average Annual Total Return as of 9/30/13

	6 Month^*		1 Year		3 Year		Since Inception (12/27/12)
High Yield Fund — Class A (with load)		-0.93%		—		—		3.18%
(without load)		2.94%		—		—		7.20%
High Yield Fund — Class C (with load)		1.56%		—		—		5.63%
(without load)		2.56%		—		—		6.63%
High Yield Fund — Class I		2.96%		—		—		7.39%
Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index		0.87%		—		—		3.79%

However, the advisor contractually agreed to waive a portion of its fees and/or reimburse expenses through at least January 28, 2015 to limit (net) operating expenses to 0.85% (excluding Distribution and Service (12b-1) Fees, interest expense and certain other expenses) for all classes. Otherwise returns shown would have been lower. Shares held less than 30 days may be subject to a 2.0% redemption fee. Please call (800) 535-2726 or visit us online at www.nomurapartnersfunds.com for the Fund’s most recent month end performance.

^*	Not annualized.

¹	Represents a hypothetical investment of $10,000 in Class A shares after deducting the maximum sales charge of 3.75% ($10,000 investment minus $375 sales charge equals $9,625).

²	Represents a hypothetical investment of $10,000 in Class C shares without the CDSC deducted. A 1.00% CDSC is, however, applied to any redemption less than 12 months from the purchase date.


Nomura Partners Funds		The World from Asia			:				15

Management’s Discussion of Fund Performance

(Unaudited) – High Yield Fund (the “Fund”)

Top Ten Holdings


Ten Largest Holdings
	at September 30, 2013
	1.	Reynolds Group Issuer, Inc.	2.07%
	2.	First Data Corp.	1.99%
	3.	Ally Financial, Inc.	1.33%
	4.	Landry’s Holdings II, Inc.	1.29%
	5.	Barclays Bank PLC	1.29%
	6.	Sprint Corp.	1.25%
	7.	EPE Holdings, LLC	1.19%
	8.	Shelf Drilling Holdings Ltd.	1.16%
	9.	LBG Capital No.1 PLC	1.14%
	10.	Windstream Corp.	1.13%

Portfolio holdings are subject to change. Holdings may combine more than one security from the same issuer and related depositary receipts and participating notes.

Percentages are based on net assets.

For more complete details about the Fund’s investment portfolio, see page 36. A quarterly Fund Summary and Portfolio Holdings list are available upon request.

Annual Review

The Fund’s performance for the period ended September 30, 2013 was 7.20% in terms of Net Asset Value (NAV) per share. The corresponding return for the Bank of America Merrill Lynch High Yield Master II Constrained Index (the ‘benchmark”) was 3.79%. Therefore, the Fund outperformed the benchmark by 3.41% (341 basis points).

The high yield market continued to grind tighter during the first quarter of 2013 despite the negative headlines coming out of Europe. Weak Eurozone growth, the banking crisis in Cyprus, and the failure to form a governing coalition in Italy all failed to damper the positive tone in U.S. markets. Unlike the previous three years, market participants focused on stimulative monetary policy, historically low interest rates, steady corporate earnings, and an overall improving U.S. economy driven by the Housing, Auto, and Energy sectors.

Yields moved sharply higher in the second quarter of 2013 as the high yield market experienced record retail outflows, quickly adjusting expectations around the Treasury market, and increased equity price volatility. Volatility spiked after a more hawkish message emanated from the Fed after the Federal Open Market Committee (“FOMC”) meeting on June 19th. In particular, Fed Chairman Bernanke articulated a quantitative easing (“QE”) tapering pace in his press conference. That said, Federal Reserve policymakers continue to stress that the full course of the plan for asset purchases is “data dependent.” In future communications, we expect FOMC participants to acknowledge that higher interest rates and tighter financial conditions may slow the pace of economic activity. Any additional drag on the economy from higher interest rates and tighter financial conditions could extend the asset purchase program.

In the third quarter of 2013, after a rally in July, political uncertainties began to weigh on investor sentiment during August, including a potential military response to Syria and the U.S. approaching the debt ceiling limit in mid-October. Uncertainty about Fed policy and who will be the next Chairman were also in the background. Worry about U.S. intervention in Syria drove oil prices to a high since March 2012. With Syria weighing on risk appetite, economic data a tad more mixed, and investors looking toward several catalysts in September (payrolls, the Federal Reserve meeting, the debt ceiling, and German elections,) Treasuries and high yield sold off in August. September got off to a fast start for the U.S. high yield market, driven by non-military solution to Syria, Larry Summers’ withdrawal from consideration for Fed chairman, a better-than-expected outcome on Chinese economic data, and eventually, a surprise decision by the Fed to leave intact its $85 billion monthly pace of asset purchases.

As the third quarter came to an end, the partial government shutdown and debt ceiling fight were still underway, but as those were resolved in October the market continued to perform well.

From a sector perspective, an overweight and positive issuer selection in the Support-Services sector contributed the most to relative performance


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Management’s Discussion of Fund Performance

(Unaudited) (continued) – High Yield Fund

year-to-date. A positive issuer selection in the Energy-Exploration & Production sector also contributed to relative performance. Lastly, negative credit selection in the Telecom-Wireless sector had the largest drag on performance for the year.

Our credit posture continues to be underweight BB-rated issuers due to enhanced Treasury sensitivity, and overweight B-rated issuers due to the improving economy, less Treasury sensitivity, and stronger covenants. We began opportunistically purchasing BB-rated issuers that sold off due to Treasury sensitivity at the beginning of September. As a result, we were able to purchase high quality issuers at attractive valuations, and lessen our underweight to BB-rated companies.

Market Outlook

We remain constructive on the high yield market and the U.S. economy. While Bernanke’s timetable for tapering QE3 was sooner than the market expected, we remain constructive on high yield fundamentals. We feel that valuations for the asset class are more attractive post the Treasury selloff. Global volatility and rising interest rates have the possibility of slowing U.S. growth, though we expect the U.S. economy to be resilient. The Housing, Energy, and Automotive sectors could all help support U.S. economic growth. The Fed is still in a stimulative posture with the clear history of resuming stimulus if it appears necessary. Further, the fiscal situation in the U.S. is improving, while the federal deficit has dropped a bit.


Portfolio Summary


Asset Allocation
September 30, 2013
Corporate Obligations			90.13%
Senior Term Loans			5.55%
Preferred Stocks			0.65%
Common Stocks			0.11%
Cash Equivalents			2.49%
Liabilities Less Other Assets			1.07%


Sector Diversification
September 30, 2013
Services			13.59%
Energy			12.34%
Telecommunication			9.62%
Basic Industry			8.42%
Media			7.35%
Technology & Electronics			6.54%
Healthcare			5.58%
Financial Services			5.55%
Consumer Cyclical			5.32%
Capital Goods			5.31%
Utility			5.30%
Automotive			4.52%
Banking			3.93%
Consumer Non-Cyclical			3.60%
Insurance			1.92%
Real Estate			0.04%

Asset allocation and sector diversification are subject to change.

Percentages are based on net assets.

For reporting purposes, industry classifications are combined in this sector diversification chart. For industry classifications, please see the Schedule of Investments starting on page 36.


Nomura Partners Funds		The World from Asia			:				17

Management’s Discussion of Fund Performance

(Unaudited) (concluded) – High Yield Fund


Credit Quality Breakdown^*
(% of Total Investments as of September 30, 2013)


S&P Ratings
BBB			0.64%
BBB-			1.47%
BB+			3.76%
BB			9.13%
BB-			9.41%
B+			11.71%
B			13.15%
B-			11.67%
CCC+			21.94%
CCC			3.12%
CCC-			2.19%
CC			0.17%
C			0.12%
D			0.10%
NR			8.91%
Short-Term Investment			2.51%

Total			100.00%

^*	Expressed as a percentage of total investments (excluding securities lending collateral if applicable) and may vary over time.


18		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – The Japan Fund

as of September 30, 2013

Common Stocks 96.70%


	Shares		Value ($)
Consumer Discretionary 22.47%
Auto Components 6.03%
Aisin Seiki Co. Ltd.		10,900		467,176
Bridgestone Corp.		112,600		4,121,726
Denso Corp.		44,800		2,099,003
Kasai Kogyo Co. Ltd.		21,000		128,980
Koito Manufacturing Co. Ltd.		18,000		343,011
NGK Spark Plug Co. Ltd.		67,000		1,488,516
NHK Spring Co. Ltd.		60,300		620,331
Piolax, Inc.		11,500		360,952
Press Kogyo Co. Ltd.		36,000		159,422
Sanoh Industrial Co. Ltd.		12,700		93,646
Sumitomo Rubber Industries Ltd.		57,000		882,346
Tachi-S Co. Ltd.		12,100		183,685
Yokohama Rubber Co. Ltd.		18,000		178,274
Yorozu Corp.		18,400		365,978
				11,493,046

Automobiles 7.16%
Daihatsu Motor Co. Ltd.		38,000		738,295
Fuji Heavy Industries Ltd.		112,000		3,115,583
Honda Motor Co. Ltd.		82,300		3,145,121
Isuzu Motors Ltd.		106,000		702,706
Mazda Motor Corp.^*		149,000		667,619
Nissan Motor Co. Ltd.		92,700		933,325
Suzuki Motor Corp.		6,200		148,938
Toyota Motor Corp.		65,300		4,187,763
				13,639,350

Distributors 0.13%
Paltac Corp.		17,700		244,562

Diversified Consumer Services 0.10%
Step Co. Ltd.		9,800		88,346
Take And Give Needs Co. Ltd.		4,120		97,909
				186,255

Hotels, Restaurants & Leisure 0.93%
Doutor Nichires Holdings Co. Ltd.		5,700		100,067
H.I.S. Co. Ltd.		2,800		164,351
Oriental Land Co. Ltd.		6,700		1,109,032
Resorttrust, Inc.		3,800		136,806
Tosho Co. Ltd.		17,700		258,002
				1,768,258

Household Durables 2.78%
Alpine Electronics, Inc.		15,200		165,828
Fujitsu General Ltd.		12,000		138,071
Hajime Construction Co. Ltd.		1,200		77,741
Panasonic Corp.		42,700		413,859


	Shares		Value ($)
Sekisui House Ltd.		153,000		2,062,740
Sony Corp.		114,100		2,444,822
				5,303,061

Internet & Catalog Retail 0.92%
ASKUL Corp.		4,200		97,287
Rakuten, Inc.		96,800		1,470,925
Start Today Co. Ltd.		6,600		186,303
				1,754,515

Leisure Equipment & Products 0.59%
Shimano, Inc.		6,400		572,635
Tamron Co. Ltd.		4,200		92,768
Yamaha Corp.		31,900		456,936
				1,122,339

Media 1.53%
CyberAgent, Inc.		10,500		290,303
Fuji Media Holdings, Inc.		8,400		184,969
Kadokawa Group Holdings, Inc.		26,100		921,766
Nippon Television Holdings, Inc.		10,200		189,520
Septeni Holdings Co. Ltd.		18,400		166,760
SKY Perfect JSAT Holdings, Inc.		76,200		397,807
TV Asahi Corp.		33,200		772,846
				2,923,971

Multiline Retail 0.69%
Isetan Mitsukoshi Holdings Ltd.		28,800		428,607
Izumi Co. Ltd.		1,900		55,446
J Front Retailing Co. Ltd.		52,000		422,610
Ryohin Keikaku Co. Ltd.		4,500		407,176
				1,313,839

Specialty Retail 1.61%
ABC-Mart, Inc.		3,100		151,249
Adastria Holdings Co. Ltd.		7,800		371,674
Alpen Co. Ltd.		20,200		419,844
AOYAMA Trading Co. Ltd.		7,300		199,340
Arc Land Sakamoto Co. Ltd.		17,800		266,600
Bookoff Corp.		1,000		6,843
DCM Holdings Co. Ltd.		16,900		120,061
Fast Retailing Co. Ltd.		600		226,390
Jin Co. Ltd.		1,800		67,884
K’s Holdings Corp.		5,800		158,871
Shimachu Co. Ltd.		7,100		176,339
United Arrows Ltd.		1,200		50,659
Xebio Co. Ltd.		38,400		859,755
				3,075,509
Total Consumer Discretionary				42,824,705

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


Nomura Partners Funds		The World from Asia			:				19

Schedule of Investments – The Japan Fund

as of September 30, 2013

Common Stocks (continued)


	Shares		Value ($)
Consumer Staples 6.04%
Food & Staples Retailing 3.22%
Arcs Co. Ltd.		4,900		90,491
Belc Co. Ltd.		1,400		25,303
Heiwado Co. Ltd.		9,700		151,250
Kusuri No Aoki Co. Ltd.		1,900		124,141
Lawson, Inc.		7,700		604,382
Maxvalu Tokai Co. Ltd.		10,800		147,326
Seven & I Holdings Co. Ltd.		123,700		4,531,005
Sugi Holdings Co. Ltd.		3,200		137,360
Welcia Holdings Co. Ltd.		6,050		320,466
				6,131,724

Food Products 0.95%
Ajinomoto Co., Inc.		47,000		618,848
Ariake Japan Co. Ltd.		9,000		223,106
Fuji Oil Co. Ltd.		30,700		533,969
Kewpie Corp.		11,500		182,826
Nippon Flour Mills Co. Ltd.		12,000		60,352
Nippon Meat Packers, Inc.		11,000		157,863
Nisshin Oillio Group Ltd.		12,000		41,723
				1,818,687

Household Products 0.47%
Unicharm Corp.		15,300		895,575

Personal Products 0.05%
Milbon Co. Ltd.		2,300		94,365

Tobacco 1.35%
Japan Tobacco, Inc.		71,200		2,570,889
Total Consumer Staples				11,511,240

Energy 0.62%
Energy Equipment & Services 0.17%
Modec, Inc.		10,200		320,191

Oil, Gas & Consumable Fuels 0.45%
INPEX Corp.		18,800		222,235
Itochu Enex Co. Ltd.		19,600		102,018
Japan Petroleum Exploration Co.		3,500		150,887
JX Holdings, Inc.		75,900		394,730
				869,870
Total Energy				1,190,061

Financials 15.61%
Capital Markets 0.67%
Daiwa Securities Group, Inc.		126,000		1,136,922
Monex Group, Inc.		31,300		132,425
				1,269,347


	Shares		Value ($)
Commercial Banks 9.12%
Bank of Kyoto Ltd.		18,000		158,695
Bank of Yokohama Ltd.		194,000		1,110,873
Chiba Bank Ltd.		115,000		841,787
Joyo Bank Ltd.		40,000		215,558
Keiyo Bank Ltd.		42,000		221,107
Mitsubishi UFJ Financial Group, Inc.		747,200		4,793,175
Mizuho Financial Group, Inc.		979,800		2,132,699
Resona Holdings, Inc.		427,200		2,187,895
Sumitomo Mitsui Financial Group, Inc.		99,700		4,840,233
Sumitomo Mitsui Trust Holdings, Inc.		91,000		451,932
Suruga Bank Ltd.		13,000		224,396
The Hiroshima Bank Ltd.		49,000		209,461
				17,387,811

Consumer Finance 0.75%
Credit Saison Co. Ltd.		16,700		454,189
Hitachi Capital Corp.		33,600		813,538
Pocket Card Co. Ltd.		19,700		168,374
				1,436,101

Diversified Financial Services 1.97%
Fuyo General Lease Co. Ltd.		9,800		368,961
Mitsubishi UFJ Lease & Finance Co. Ltd.		41,700		221,559
ORIX Corp.		186,900		3,058,933
Ricoh Leasing Co. Ltd.		3,400		95,104
				3,744,557

Insurance 0.88%
Dai-ichi Life Insurance Co. Ltd.		41,200		590,550
LIFENET INSURANCE Co.^*		5,700		37,788
Sony Financial Holdings, Inc.		24,100		443,126
T&D Holdings, Inc.		13,500		167,725
Tokio Marine Holdings, Inc.		13,500		442,871
				1,682,060

Real Estate Management & Development 2.22%
Daibiru Corp.		24,000		281,165
Mitsui Fudosan Co. Ltd.		6,000		202,796
Sumitomo Realty & Development Co. Ltd.		51,000		2,432,218
Tokyo Tatemono Co. Ltd.		28,000		257,893
Tokyu Land Corp.		103,000		1,057,817
				4,231,889
Total Financials				29,751,765

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


20		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – The Japan Fund

as of September 30, 2013

Common Stocks (continued)


	Shares		Value ($)
Health Care 3.65%
Health Care Equipment & Supplies 1.13%
Asahi Intecc Co. Ltd.		4,600		301,854
Hogy Medical Co. Ltd.		8,600		477,442
Sysmex Corp.		5,000		320,483
Terumo Corp.		20,700		1,065,332
				2,165,111

Health Care Providers & Services 0.18%
Ship Healthcare Holdings, Inc.		2,300		89,788
Tokai Corp/Gifu		2,600		69,939
Tsukui Corp.		14,900		181,923
				341,650

Pharmaceuticals 2.34%
Astellas Pharma, Inc.		26,100		1,334,091
Chugai Pharmaceutical Co. Ltd.		25,700		528,710
Kyowa Hakko Kirin Co. Ltd.		16,000		164,760
Nichi-iko Pharmaceutical Co. Ltd.		7,900		184,669
Nippon Shinyaku Co. Ltd.		9,000		155,447
Seikagaku Corp.		15,300		205,434
Takeda Pharmaceutical Co. Ltd.		39,900		1,887,325
				4,460,436
Total Health Care				6,967,197

Industrials 24.49%
Air Freight & Logistics 0.45%
Kintetsu World Express, Inc.		6,500		233,637
Yamato Holdings Co. Ltd.		27,700		626,235
				859,872

Airlines 0.70%
Japan Airlines Co. Ltd.		22,000		1,333,408

Building Products 1.74%
Bunka Shutter Co. Ltd.		32,000		165,726
Daikin Industries Ltd.		28,100		1,493,663
LIXIL Group Corp.		40,600		838,801
Nichias Corp.		19,000		128,086
Sanwa Holdings Corp.		72,000		440,357
Sekisui Jushi Corp.		11,000		159,368
Takasago Thermal Engineering Co. Ltd.		10,300		87,546
				3,313,547
Commercial Services & Supplies 0.78%
Daiseki Co. Ltd.		3,900		71,990
Moshi Moshi Hotline, Inc.		15,500		181,487
Sato Holdings Corp.		20,000		409,500
Secom Co. Ltd.		2,900		182,013


	Shares		Value ($)
Sohgo Security Services Co. Ltd.		22,000		441,090
Toppan Printing Co. Ltd.		25,000		202,129
				1,488,209

Construction & Engineering 1.80%
JGC Corp.		15,000		543,010
Kajima Corp.		150,000		613,225
Kandenko Co. Ltd.		30,000		181,779
MIRAIT Holdings Corp.		21,700		185,724
Nippo Corp.		24,000		412,059
Obayashi Corp.		73,000		436,697
Taikisha Ltd.		8,100		193,475
Taisei Corp.		175,000		863,475
				3,429,444

Electrical Equipment 3.68%
Mabuchi Motor Co. Ltd.		3,400		179,765
Mitsubishi Electric Corp.		314,000		3,314,467
Nidec Corp.		9,500		786,683
Sumitomo Electric Industries Ltd.		187,800		2,726,130
				7,007,045

Industrial Conglomerates 0.69%
Toshiba Corp.		294,000		1,325,269

Machinery 8.21%
Daifuku Co. Ltd.		23,500		255,328
Ebara Corp.		90,000		506,168
FANUC Corp.		4,800		793,757
Hino Motors Ltd.		15,000		222,293
Hitachi Zosen Corp.		123,000		967,332
Hosokawa Micron Corp.		13,000		92,020
Kitz Corp.		29,700		134,412
Komatsu Ltd.		32,100		801,333
Komori Corp.		12,500		184,601
Kubota Corp.		126,000		1,829,891
Makino Milling Machine Co. Ltd.		66,000		468,717
Makita Corp.		22,900		1,332,391
Max Co. Ltd.		7,000		81,247
Mitsubishi Heavy Industries Ltd.		485,000		2,791,453
Nabtesco Corp.		7,000		171,013
Nippon Sharyo Ltd.		53,000		315,153
Nippon Thompson Co. Ltd.		56,000		319,238
NSK Ltd.		171,000		1,754,273
Obara Group, Inc.		5,700		141,332
Oiles Corp.		20,400		469,103
ShinMaywa Industries Ltd.		55,000		428,570
SMC Corp.		3,200		763,885

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


Nomura Partners Funds		The World from Asia			:				21

Schedule of Investments – The Japan Fund

as of September 30, 2013

Common Stocks (continued)


	Shares		Value ($)
Industrials (continued)
Sumitomo Heavy Industries Ltd.		35,000		159,564
Tocalo Co. Ltd.		8,400		125,252
Tsubakimoto Chain Co.		79,000		551,908
				15,660,234

Marine 0.22%
Nippon Yusen K.K.		131,000		415,019

Professional Services 0.19%
Nihon M&A Center, Inc.		2,800		215,063
Temp Holdings Co. Ltd.		5,800		147,124
				362,187

Road & Rail 2.77%
East Japan Railway Co.		39,100		3,370,351
Hamakyorex Co. Ltd.		11,000		316,502
Hankyu Hanshin Holdings, Inc.		115,000		639,824
Nippon Express Co. Ltd.		66,000		331,749
Seino Holdings Co. Ltd.		25,000		255,907
Senko Co. Ltd.		72,000		363,048
				5,277,381

Trading Companies & Distributors 3.04%
Hanwa Co. Ltd.		57,000		270,418
Inabata & Co. Ltd.		14,800		142,785
ITOCHU Corp.		33,200		407,903
Marubeni Corp.		24,000		189,435
Mitsubishi Corp.		137,300		2,784,934
Mitsui & Co. Ltd.		80,700		1,175,852
MonotaRO Co. Ltd.		1,700		49,859
Nishio Rent All Co. Ltd.		8,600		240,427
Sumitomo Corp.		33,100		447,029
Trusco Nakayama Corp.		3,900		79,958
				5,788,600

Transportation Infrastructure 0.22%
Mitsubishi Logistics Corp.		28,000		424,751
Total Industrials				46,684,966

Information Technology 9.18%
Communications Equipment 0.27%
Hitachi Kokusai Electric, Inc.		43,000		517,095

Computers & Peripherals 0.07%
NEC Corp.		62,000		143,895


	Shares		Value ($)
Electronic Equipment, Instruments & Components 5.78%
Alps Electric Co. Ltd.^*		31,100		251,834
Azbil Corp.		7,000		162,804
Citizen Holdings Co. Ltd.		125,000		879,752
Hamamatsu Photonics K.K.		10,200		385,039
Hitachi High-Technologies Corp.		29,200		656,803
Hitachi Ltd.		643,000		4,257,546
Japan Aviation Electronics Industry Ltd.		26,000		301,415
Keyence Corp.		4,800		1,828,269
Macnica, Inc.		14,100		375,641
Maruwa Co. Ltd/Aichi		4,500		160,043
Murata Manufacturing Co. Ltd.		2,800		214,555
Nichicon Corp.		17,500		193,823
Osaki Electric Co. Ltd.		4,000		24,700
Panasonic Industrial Devices SUNX Co. Ltd.		33,900		146,416
Siix Corp.		28,100		369,910
Taiyo Yuden Co. Ltd.		10,400		136,148
TDK Corp.		5,800		228,210
Yaskawa Electric Corp.		31,000		437,917
				11,010,825

Internet Software & Services 0.20%
F@N Communications, Inc.		6,500		147,998
Internet Initiative Japan, Inc.		4,800		138,175
Kakaku.com, Inc.		4,000		93,633
				379,806

IT Services 0.93%
GMO Payment Gateway, Inc.		3,400		92,597
IT Holdings Corp.		17,300		218,552
NS Solutions Corp.		21,000		413,484
NTT Data Corp.		6,000		202,707
SCSK Corp.		27,400		660,637
Transcosmos, Inc.		10,500		184,550
				1,772,527

Office Electronics 0.91%
Canon, Inc.		40,100		1,281,453
Toshiba TEC Corp.		73,000		449,872
				1,731,325

Semiconductors & Semiconductor Equipment 0.17%
Sanken Electric Co. Ltd.		38,000		194,842
UT Holdings Co. Ltd.		28,000		121,480
				316,322

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


22		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – The Japan Fund

as of September 30, 2013

Common Stocks (continued)


	Shares		Value ($)
Information Technology (continued)
Software 0.85%
Capcom Co. Ltd.		14,800		284,968
Nintendo Co. Ltd.		5,500		624,979
NSD Co. Ltd.		7,100		79,890
OBIC Business Consultants Co. Ltd.		17,400		632,628
				1,622,465
Total Information Technology				17,494,260

Materials 9.23%
Chemicals 5.40%
ADEKA Corp.		8,700		103,409
Arakawa Chemical Industries Ltd.		11,100		99,124
Asahi Kasei Corp.		24,000		181,344
C Uyemura & Co. Ltd.		2,000		84,389
Daicel Corp.		116,000		1,049,122
Daiso Co. Ltd.		18,000		56,159
DIC Corp.		417,000		1,155,644
Hitachi Chemical Co. Ltd.		38,300		616,781
JSP Corp.		12,900		210,885
JSR Corp.		22,100		411,834
Kansai Paint Co. Ltd.		30,000		398,743
KUREHA Corp.		118,000		426,041
LINTEC Corp.		6,900		147,236
Mitsubishi Gas Chemical Co., Inc.		51,000		429,781
Nitto Denko Corp.		19,600		1,284,117
Sakai Chemical Industry Co. Ltd.		43,000		154,779
Shikoku Chemicals Corp.		22,000		185,806
Shin-Etsu Chemical Co. Ltd.		14,300		877,913
Showa Denko K.K.		120,000		162,849
Taiyo Holdings Co. Ltd.		10,400		323,900
Taiyo Nippon Sanso Corp.		59,000		396,934
Takiron Co. Ltd.		21,000		90,409
Toray Industries, Inc.		128,000		844,020
Toyo Ink SC Holdings Co. Ltd.		79,000		411,603
Toyobo Co. Ltd.		95,000		182,581
				10,285,403

Containers & Packaging 0.22%
FP Corp.		3,600		270,563
Fuji Seal International, Inc.		3,200		97,161
The Pack Corp.		3,000		54,759
				422,483


	Shares		Value ($)
Metals & Mining 3.38%
Asahi Holdings, Inc.		7,800		131,409
Chubu Steel Plate Co. Ltd.		31,700		146,360
Dowa Holdings Co. Ltd.		25,000		252,477
Furukawa-Sky Aluminum Corp.		48,000		161,343
Hitachi Metals Ltd.		34,000		417,936
JFE Holdings, Inc.		6,800		177,184
Kyoei Steel Ltd.		23,300		426,362
Nippon Steel & Sumitomo Metal Corp.		755,000		2,573,728
Osaka Steel Co. Ltd.		35,800		706,425
Sumitomo Metal Mining Co. Ltd.		72,000		1,020,715
Tokyo Steel Manufacturing Co. Ltd.^*		36,200		215,304
Yamato Kogyo Co. Ltd.		5,600		208,456
				6,437,699

Paper & Forest Products 0.23%
Oji Holdings Corp.		95,000		446,297
Total Materials				17,591,882

Telecommunication Services 4.69%
Diversified Telecommunication Services 2.04%
Freebit Co. Ltd.		15,200		76,281
Nippon Telegraph and Telephone Corp.		73,500		3,814,990
				3,891,271

Wireless Telecommunication Services 2.65%
KDDI Corp.		39,000		2,007,474
NTT DoCoMo, Inc.		80,300		1,304,625
Okinawa Cellular Telephone Co.		10,900		277,417
Softbank Corp.		21,000		1,459,444
				5,048,960
Total Telecommunication Services				8,940,231

Utilities 0.72%
Gas Utilities 0.50%
Tokyo Gas Co. Ltd.		172,000		945,455

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


Nomura Partners Funds		The World from Asia			:				23

Schedule of Investments – The Japan Fund

as of September 30, 2013

Common Stocks (concluded)


	Shares		Value ($)
Utilities (continued)
Independent Power Producers & Energy Traders 0.22%
Electric Power Development Co. Ltd.		13,100		428,187
Total Utilities				1,373,642
Total Common Stocks (Cost $132,530,292)				184,329,949
Total Investments 96.70% (Cost $132,530,292)				184,329,949
Other Assets Less Liabilities 3.30%				6,289,079
Net Assets 100.00%				190,619,028

^*	Non income-producing security.

VALUATION INPUTS



Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	—	$	184,329,949	$	—	$	184,329,949
Total Investments	$	—	$	184,329,949	$	—	$	184,329,949

There were no transfers between Level 1, 2, or 3 as of September 30, 2013, based upon the valuation input levels assigned to securities on September 30, 2012.

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


24		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – Asia Pacific ex Japan Fund

as of September 30, 2013

Common Stocks 89.24%


	Shares		Value ($)
Australia 7.09%
Biotechnology 2.78%
CSL Ltd.		3,685		219,859

Diversified Consumer Services 2.57%
Invocare Ltd.		19,383		202,913

Real Estate Management & Development 1.74%
Lend Lease Group		14,563		138,063
Total Australia				560,835

China 14.49%
Capital Markets 1.25%
Haitong Securities Co. Ltd. — H Shares		66,000		98,429

Computers & Peripherals 2.35%
Lenovo Group Ltd.		178,000		185,788

Food Products 0.25%
China Huishan Dairy Holdings Co. Ltd.*		61,000		19,663

Health Care Providers & Services 3.08%
Sinopharm Group Co.Ltd. — H Shares		97,200		243,740

Insurance 2.50%
China Pacific Insurance Group Co. Ltd. — H Shares		55,400		197,660

Internet Software & Services 2.99%
Tencent Holdings Ltd.		4,500		236,371

Metals & Mining 2.07%
Jiangxi Copper Co. Ltd. — H Shares		83,000		163,911
Total China				1,145,562

Hong Kong 18.39%
Auto Parts & Equipments 0.35%
Nexteer Automotive Group Ltd. *		78,000		27,738

Commercial Banks 4.66%
BOC Hong Kong Holdings Ltd.		114,500		368,066

Hotels, Restaurants & Leisure 5.25%
Galaxy Entertainment Group Ltd.*		10,000		70,326
Sands China Ltd.		55,600		344,760
				415,086


	Shares		Value ($)
Insurance 1.33%
AIA Group Ltd.		22,400		105,453

Real Estate Management & Development 4.75%
Country Garden Holdings Co.		139,000		89,716
New World Development Co. Ltd.		105,000		157,949
Wheelock & Co. Ltd.		24,000		127,647
				375,312

Specialty Retail 2.05%
Luk Fook Holdings International Ltd.		52,000		162,295
Total Hong Kong				1,453,950

India 0.89%
Construction & Engineering 0.89%
Larsen & Toubro Ltd., GDR, Reg — S Shares		5,489		70,204
Total India				70,204

Indonesia 1.20%
Commercial Banks 0.46%
Bank Mandiri Persero Tbk PT		53,000		36,436

Oil, Gas & Consumable Fuels 0.12%
Adaro Energy Tbk PT		125,000		9,724

Pharmaceuticals 0.62%
Kalbe Farma Tbk PT		476,000		48,551
Total Indonesia				94,711

Korea, Republic of 13.31%
Auto Components 2.65%
Hyundai Mobis		788		209,823

Automobiles 2.11%
Kia Motors Corp.		2,745		166,528

Metals & Mining 1.49%
Korea Zinc Co. Ltd.		390		117,716

Semiconductors & Semiconductor Equipment 5.44%
Samsung Electronics Co. Ltd.		193		244,358
SK Hynix Inc.		6,610		185,539
				429,897

Specialty Retail 1.62%
Kolao Holdings		4,230		128,204
Total Korea, Republic of				1,052,168

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


Nomura Partners Funds		The World from Asia			:				25

Schedule of Investments – Asia Pacific ex Japan Fund

as of September 30, 2013

Common Stocks (continued)


	Shares		Value ($)
Malaysia 3.53%
Commercial Banks 3.53%
Malayan Banking Bhd		74,400		224,719
RHB Capital Bhd		23,348		54,165
Total Malaysia				278,884

New Zealand 3.38%
Health Care Providers & Services 3.38%
Ryman Healthcare Ltd.		46,286		266,947
Total New Zealand				266,947

Philippines 5.85%
Beverages 0.55%
Pepsi-Cola Products Philippines, Inc.		414,600		43,385
Commercial Banks 0.85%
Metropolitan Bank & Trust		35,284		67,129

Industrial Conglomerates 2.66%
Alliance Global Group, Inc.		151,900		82,093
DMCI Holdings, Inc.		32,890		34,766
SM Investments Corp.		5,222		93,650
				210,509

Real Estate Management & Development 1.17%
Ayala Land, Inc.		147,200		92,248

Software 0.62%
Touch Solutions, Inc.*		236,300		48,990
Total Philippines				462,261

Singapore 3.97%
Road & Rail 1.47%
ComfortDelGro Corp. Ltd.		74,000		116,292

Transportation Infrastructure 2.50%
SIA Engineering Co.		51,000		197,589
Total Singapore				313,881

Taiwan 10.73%
Health Care Equipment & Supplies 1.04%
St. Shine Optical Co. Ltd.		3,000		82,592

Hotels, Restaurants & Leisure 1.91%
Formosa International Hotels Corp.		13,464		151,238

Leisure Equipment & Products 2.31%
Giant Manufacturing Co. Ltd.		26,718		182,196


	Shares		Value ($)
Machinery 1.55%
King Slide Works Co. Ltd.		14,000		122,444

Semiconductors & Semiconductor Equipment 3.92%
Radiant Opto-Electronics Corp.		35,296		125,993
Taiwan Semiconductor Manufacturing Co. Ltd.		54,000		183,606
				309,599
Total Taiwan				848,069

Thailand 6.41%
Chemicals 2.90%
PTT Global Chemical PCL		96,065		228,799

Diversified Telecommunication Services 2.30%
Jasmine International PCL		690,300		182,064

Health Care Providers & Services 0.41%
Bangkok Dusit Medical Services PCL		8,000		32,225

Real Estate Management & Development 0.80%
Land and Houses PCL, NVDR		183,900		63,499
Total Thailand				506,587
Total Common Stocks (Cost $6,081,611)				7,054,059

Participatory Notes 4.80%

India 4.80%
Commercial Banks 1.53%
HDFC Bank Ltd., Issued by Merrill Lynch International & Co., maturity date 05/26/15, 144A		12,796		121,215

IT Services 1.35%
Tata Consultancy Services Ltd., Issued by JPMorgan International, maturity date 02/07/17, 144A		3,482		106,654

Pharmaceuticals 0.93%
Glenmark Pharmaceuticals Ltd., Issued by JPMorgan Structured Products, maturity date 03/07/2017, 144A		8,720		73,597

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


26		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – Asia Pacific ex Japan Fund

as of September 30, 2013

Participatory Notes (concluded)


	Shares		Value ($)
India (continued)
Tobacco 0.99%
ITC Ltd., Issued by JPMorgan International, maturity date 02/16/17, 144A		14,401		77,909
Total India				379,375
Total Participatory Notes (Cost $359,293)				379,375


	Shares		Value ($)
United States 4.91%
State Street Institutional Liquid Reserve, 0.07%^(a)		388,173		388,173
Total Short-Term Investment (Cost $388,173)				388,173
Total Investments 98.95% (Cost $6,829,077)				7,821,607
Other Assets Less Liabilities 1.05%				83,312
Net Assets 100.00%				7,904,919

^*	Non-income producing security.

^(a)	Yield as of September 30, 2013.

144A — Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the value of these securities amounted to $379,375 or 4.80% of net assets. Exempt securities that are also illiquid are as follows:


Security	Acquisition dates	Cost	Market Value
HDFC Bank Ltd., Issued by Merrill Lynch International & Co., maturing 05/26/15	05/27/10 - 03/20/13	123,643	121,215
Tata Consultancy Services Ltd., Issued by JPMorgan International, maturing 02/07/17	4/30/12 - 1/11/13	82,932	106,654
Glenmark Pharmaceuticals Ltd., Issued by JPMorgan Structured Products, maturing 03/07/2017	7/12/13 - 08/16/13	83,684	73,597
ITC Ltd., Issued by JPMorgan International, maturing 02/16/17	04/18/12	69,034	77,909

GDR — Global Depositary Receipt.

NVDR — Non Voting Depositary Receipt.

VALUATION INPUTS



Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	70,204	$	6,983,855	$	—	$	7,054,059
Participatory Notes		—		379,375		—		379,375
Short-Term Investment		—		388,173		—		388,173
Total Investments	$	70,204	$	7,751,403	$	—	$	7,821,607

There were no transfers between Level 1, 2, or 3 as of September 30, 2013, based upon the valuation input levels assigned to securities on September 30, 2012.

Short-Term Investment 4.91%

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


Nomura Partners Funds		The World from Asia			:				27

Schedule of Investments – Global Equity Income Fund

as of September 30, 2013

Common Stocks 97.24%


	Shares		Value ($)
Australia 4.82%
Beverages 0.41%
Coca-Cola Amatil Ltd.		2,782		31,824

Commercial Banks 1.25%
Westpac Banking Corp.		3,190		97,482

Diversified Telecommunication Services 0.45%
Telstra Corp. Ltd.		7,527		34,908

Health Care Equipment & Supplies 0.14%
Cochlear Ltd.		202		11,403

Metals & Mining 1.54%
BHP Billiton Ltd.		3,623		120,840

Real Estate Investment Trusts (REITs) 1.03%
Westfield Group		7,815		80,274
Total Australia				376,731

Brazil 0.95%
Beverages 0.64%
Companhia — de Bebidas das Americas, PRF, ADR		1,300		49,855

Diversified Telecommunication Services 0.31%
Telefonica Brasil S.A., ADR		1,100		24,684
Total Brazil				74,539

Canada 1.27%
Commercial Banks 1.27%
The Toronto-Dominion Bank		1,100		99,038
Total Canada				99,038

China 1.69%
Commercial Banks 1.19%
Industrial & Commercial Bank of China Ltd. — H Shares		133,000		92,953

Wireless Telecommunication Services 0.50%
China Mobile Ltd.		3,500		39,418
Total China				132,371

France 3.27%
Insurance 1.00%
SCOR SE		2,373		78,636

Oil, Gas & Consumable Fuels 1.17%
Total S.A.		1,571		91,309


	Shares		Value ($)
Pharmaceuticals 1.10%
Sanofi		847		85,893
Total France				255,838

Germany 2.27%
Automobiles 0.40%
Daimler AG		402		31,334

Chemicals 0.28%
BASF SE		224		21,508

Commercial Services & Supplies 0.44%
Bilfinger SE		328		34,453

Industrial Conglomerates 0.36%
Siemens AG		236		28,452

Insurance 0.79%
Allianz SE		394		61,938
Total Germany				177,685

Hong Kong 1.15%
Diversified Telecommunication Services 0.48%
HKT Trust / HKT Ltd.		40,000		37,597

Hotels, Restaurants & Leisure 0.67%
Sands China Ltd.		8,400		52,086
Total Hong Kong				89,683

Ireland 0.77%
Construction Materials 0.77%
CRH PLC		2,491		59,919
Total Ireland				59,919

Israel 0.87%
Pharmaceuticals 0.87%
Teva Pharmaceutical Industries Ltd., ADR		1,800		68,004
Total Israel				68,004

Italy 1.09%
Gas Utilities 0.77%
Snam SpA		11,920		60,408

Oil, Gas & Consumable Fuels 0.32%
ENI SpA		1,089		25,107
Total Italy				85,515

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


28		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – Global Equity Income Fund

as of September 30, 2013

Common Stocks (continued)


	Shares		Value ($)
Japan 8.26%
Automobiles 2.08%
Nissan Motor Co. Ltd.		4,700		47,321
Toyota Motor Corp.		1,800		115,436
				162,757

Chemicals 0.39%
Shin-Etsu Chemical Co. Ltd.		500		30,696

Commercial Banks 0.90%
Mitsubishi UFJ Financial Group, Inc.		5,700		36,565
Sumitomo Mitsui Financial Group, Inc.		700		33,983
				70,548

Commercial Services & Supplies 0.72%
Secom Co. Ltd.		900		56,487

Diversified Consumer Services 0.33%
Benesse Holdings, Inc.		700		25,473

Food & Staples Retailing 0.20%
Lawson, Inc.		200		15,698

Office Electronics 0.41%
Canon, Inc.		1,000		31,956

Pharmaceuticals 0.56%
Tsumura & Co.		1,500		44,049

Real Estate Investment Trusts (REITs) 0.51%
Nippon Prologis REIT, Inc.		4		40,070

Real Estate Management & Development 0.64%
Daito Trust Construction Co. Ltd.		500		50,072

Tobacco 0.37%
Japan Tobacco, Inc.		800		28,886

Trading Companies & Distributors 0.65%
Mitsubishi Corp.		2,500		50,709

Wireless Telecommunication Services 0.50%
NTT DoCoMo, Inc.		2,400		38,993
Total Japan				646,394

Malaysia 0.68%
Commercial Banks 0.33%
Malayan Banking Bhd		8,600		25,976

Wireless Telecommunication Services 0.35%
Axiata Group Bhd		13,100		27,657
Total Malaysia				53,633


	Shares		Value ($)
Mexico 0.90%
Household Products 0.58%
Kimberly-Clark de Mexico SAB de C.V. — A Shares		15,700		45,902

Metals & Mining 0.32%
Grupo Mexico SAB de C.V. — Series B		8,328		24,934
Total Mexico				70,836

Netherlands 2.22%
Chemicals 0.75%
LyondellBasell Industries NV		800		58,584

Oil, Gas & Consumable Fuels 1.47%
Royal Dutch Shell PLC — B Shares		3,325		114,921
Total Netherlands				173,505

Singapore 2.27%
Industrial Conglomerates 1.83%
Keppel Corp. Ltd.		17,300		143,723

Wireless Telecommunication Services 0.44%
StarHub Ltd.		10,000		34,205
Total Singapore				177,928

Spain 0.58%
Electric Utilities 0.58%
Red Electrica Corp. SA		792		45,212
Total Spain				45,212

Sweden 0.54%
Machinery 0.54%
Atlas Copco AB — B Shares		1,594		42,150
Total Sweden				42,150

Switzerland 7.71%
Diversified Telecommunication Services 0.50%
Swisscom AG		81		38,974

Electrical Equipment 0.91%
ABB Ltd.^*		3,032		71,627

Food Products 1.40%
Nestle S.A.		1,565		109,616

Insurance 0.84%
Zurich Insurance Group AG^*		254		65,416

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


Nomura Partners Funds		The World from Asia			:				29

Schedule of Investments – Global Equity Income Fund

as of September 30, 2013

Common Stocks (continued)


	Shares		Value ($)
Switzerland (continued)
Pharmaceuticals 4.06%
Novartis AG		1,670		128,366
Roche Holding AG — Genussehein		701		189,100
				317,466
Total Switzerland				603,099

Taiwan 1.27%
Electronic Equipment, Instruments & Components 0.31%
Delta Electronics, Inc.		5,000		24,286

Semiconductors & Semiconductor Equipment 0.96%
Taiwan Semiconductor Manufacturing Co. Ltd.		22,079		75,071
Total Taiwan				99,357

United Kingdom 10.27%
Commercial Banks 3.22%
HSBC Holdings PLC		12,640		136,982
Standard Chartered PLC		4,805		115,247
				252,229

Diversified Telecommunication Services 0.22%
Inmarsat PLC		1,462		16,795

Electric Utilities 0.31%
SSE PLC		1,026		24,505

Food Products 0.25%
Unilever PLC		499		19,272

Media 0.58%
Reed Elsevier PLC		3,383		45,568

Multi-Utilities 0.50%
National Grid PLC		3,327		39,359

Oil, Gas & Consumable Fuels 2.01%
BP PLC		22,430		157,366

Pharmaceuticals 1.72%
AstraZeneca PLC		477		24,790
GlaxoSmithKline PLC		4,360		109,580
				134,370

Tobacco 0.98%
British American Tobacco PLC		1,444		76,619


	Shares		Value ($)
Wireless Telecommunication Services 0.48%
Vodafone Group PLC		10,603		37,389
Total United Kingdom				803,472

United States 44.39%
Aerospace & Defense 3.43%
General Dynamics Corp.		300		26,256
Raytheon Co.		900		69,363
The Boeing Co.		1,100		129,250
United Technologies Corp.		400		43,128
				267,997

Air Freight & Logistics 1.40%
United Parcel Service, Inc. — Class B		1,200		109,644

Auto Components 0.53%
Johnson Controls, Inc.		1,000		41,500

Automobiles 0.45%
Ford Motor Co.		2,100		35,427

Beverages 1.89%
Coca-Cola Co.		2,000		75,760
Dr. Pepper Snapple Group, Inc.		1,600		71,712
				147,472

Biotechnology 0.43%
Amgen, Inc.		300		33,582

Capital Markets 0.40%
Ares Capital Corp.		1,800		31,122

Chemicals 1.02%
E. I. du Pont de Nemours & Co.		900		52,704
The Dow Chemical Co.		700		26,880
				79,584

Commercial Banks 1.52%
U.S. Bancorp		1,000		36,580
Wells Fargo & Co.		2,000		82,640
				119,220

Communications Equipment 1.11%
Cisco Systems, Inc.		3,700		86,654

Distributors 0.31%
Genuine Parts Co.		300		24,267

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


30		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – Global Equity Income Fund

as of September 30, 2013

Common Stocks (continued)


	Shares		Value ($)
United States (continued)
Diversified Financial Services 2.50%
JPMorgan Chase & Co.		2,900		149,901
McGraw Hill Financial, Inc.		700		45,913
				195,814

Diversified Telecommunication Services 0.56%
AT&T, Inc.		600		20,292
Verizon Communications, Inc.		500		23,330
				43,622
Electric Utilities 0.96%
Duke Energy Corp.		266		17,764
Northeast Utilities		800		33,000
Southern Co.		600		24,708
				75,472

Electrical Equipment 0.66%
Emerson Electric Co.		800		51,760

Food & Staples Retailing 0.24%
Sysco Corp.		600		19,098

Health Care Equipment & Supplies 1.65%
Abbott Laboratories		1,000		33,190
Baxter International, Inc.		400		26,276
Medtronic, Inc.		1,300		69,225
				128,691

Hotels, Restaurants & Leisure 0.25%
McDonald’s Corp.		200		19,242

Household Durables 0.50%
Leggett & Platt, Inc.		1,300		39,195

Household Products 0.39%
Procter & Gamble Co.		400		30,236

Industrial Conglomerates 1.71%
3M Co.		300		35,823
General Electric Co.		4,100		97,949
				133,772

Insurance 0.95%
Aflac, Inc.		500		30,995
Arthur J Gallagher & Co.		1,000		43,650
				74,645

IT Services 1.92%
Automatic Data Processing, Inc.		900		65,142
Paychex, Inc.		2,100		85,344
				150,486


	Shares		Value ($)
Machinery 0.39%
Illinois Tool Works, Inc.		400		30,508

Metals & Mining 1.97%
Nucor Corp.		2,700		132,354
Southern Copper Corp.		809		22,037
				154,391

Multi-Utilities 0.36%
Wisconsin Energy Corp.		700		28,266

Oil, Gas & Consumable Fuels 5.20%
Chevron Corp.		1,200		145,800
Exxon Mobil Corp.		1,200		103,248
Kinder Morgan Inc.		2,900		103,153
Spectra Energy Corp.		1,600		54,768
				406,969

Pharmaceuticals 4.78%
AbbVie, Inc.		1,000		44,730
Eli Lilly & Co.		400		20,132
Johnson & Johnson		1,700		147,373
Merck & Co., Inc.		3,400		161,874
				374,109

Real Estate Investment Trusts (REITs) 0.93%
Corrections Corp. of America		800		27,640
The Macerich Co.		800		45,152
				72,792

Road & Rail 0.43%
CSX Corp.		1,300		33,462

Semiconductors & Semiconductor Equipment 2.28%
Intel Corp.		1,200		27,504
Linear Technology Corp.		1,300		51,558
Maxim Integrated Products, Inc.		500		14,900
Microchip Technology, Inc.		2,100		84,609
				178,571

Software 0.09%
Microsoft Corp.		200		6,662

Specialty Retail 0.49%
Home Depot, Inc.		500		37,925

Tobacco 2.16%
Altria Group, Inc.		2,400		82,440
Philip Morris International, Inc.		1,000		86,590
				169,030

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


Nomura Partners Funds		The World from Asia			:				31

Schedule of Investments – Global Equity Income Fund

as of September 30, 2013

Common Stocks (concluded)


	Shares		Value ($)
United States (continued)
Water Utilities 0.53%
American Water Works Co., Inc.		1,000		41,280
Total United States				3,472,467
Total Common Stocks (Cost $5,941,691)				7,607,376

Short-Term Investment 2.14%


	Shares		Value ($)
United States 2.14%
State Street Institutional Liquid Reserve, 0.07%^(a)		167,420		167,420
Total Short-Term Investment (Cost $167,420)				167,420
Total Investments 99.38% (Cost $6,109,111)				7,774,796
Other Assets Less Liabilities 0.62%				48,207
Net Assets 100.00%				7,823,003

^*	Non income-producing security.

^(a)	Yield as of September 30, 2013.

ADR — American Depositary Receipt.

VALUATION INPUTS



Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	3,843,468	$	3,763,908	$	—	$	7,607,376
Short-Term Investment		—		167,420		—		167,420
Total Investments	$	3,843,468	$	3,931,328	$	—	$	7,774,796

There were no transfers between Level 1, 2, or 3 as of September 30, 2013, based upon the valuation input levels assigned to securities on September 30, 2012.

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


32		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – Global Emerging Markets Fund

as of September 30, 2013

Common Stocks 87.83%


	Shares		Value ($)
Brazil 3.28%
Household Durables 0.65%
PDG Realty S.A. Empreendimentos e Participacoes^*		102,400		113,660

Road & Rail 1.56%
Localiza Rent a Car S.A.		18,270		272,034

Specialty Retail 1.07%
Cia Hering		12,200		185,177
Total Brazil				570,871

Chile 1.45%
Commercial Banks 1.45%
Banco Santander Chile, ADR		9,596		252,279
Total Chile				252,279

China 13.11%
Automobiles 1.87%
Dongfeng Motor Group Co. Ltd. — H Shares		214,000		325,874

Commercial Banks 4.10%
Industrial & Commercial Bank of China Ltd. —H Shares		1,021,180		713,696

Computers & Peripherals 2.37%
Lenovo Group Ltd.		396,000		413,326

Insurance 1.06%
China Taiping Insurance Holdings Co. Ltd.^*		128,800		184,588

Oil, Gas & Consumable Fuels 3.71%
CNOOC Ltd.		320,000		646,724
Total China				2,284,208

Columbia 2.07%
Oil, Gas & Consumable Fuels 2.07%
Pacific Rubiales Energy Corp.		18,300		361,363
Total Columbia				361,363

Hong Kong 3.01%
Diversified Financial Services 0.94%
First Pacific Co. Ltd.		148,000		163,082


	Shares		Value ($)
Hotels, Restaurants & Leisure 2.07%
SJM Holdings Ltd.		128,000		360,730
Total Hong Kong				523,812

Indonesia 1.11%
Wireless Telecommunication Services 1.11%
Tower Bersama Infrastructure Tbk PT		381,000		192,619
Total Indonesia				192,619

Korea, Republic of 13.84%
Auto Components 2.98%
Hyundai Mobis		1,950		519,231

Chemicals 1.54%
LG Chem Ltd.		941		268,668

Insurance 2.40%
Korean Reinsurance Co.		35,016		416,971

Semiconductors & Semiconductor Equipment 6.92%
Samsung Electronics Co. Ltd., GDR, Reg S		1,890		1,205,820
Total Korea, Republic of				2,410,690

Malaysia 6.08%
Commercial Banks 1.88%
CIMB Group Holdings Bhd		141,800		327,294

Hotels, Restaurants & Leisure 2.43%
Genting Malaysia Bhd		326,900		423,397

Wireless Telecommunication Services 1.77%
Axiata Group Bhd		145,825		307,873
Total Malaysia				1,058,564

Mexico 7.73%
Chemicals 1.27%
Mexichem SAB de C.V.		50,935		222,076

Commercial Banks 2.20%
Grupo Financiero Banorte SAB de C.V.		61,600		383,826

Food & Staples Retailing 2.08%
Controladora Comercial Mexicana SAB de C.V.		85,100		361,998

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


Nomura Partners Funds		The World from Asia			:				33

Schedule of Investments – Global Emerging Markets Fund

as of September 30, 2013

Common Stocks (continued)


	Shares		Value ($)
Mexico (continued)
Wireless Telecommunication Services 2.18%
America Movil SAB de C.V. — Series L		382,500		379,300
Total Mexico				1,347,200

Peru 2.30%
Commercial Banks 2.30%
Credicorp Ltd.		3,117		400,410
Total Peru				400,410

Russia 10.28%
Commercial Banks 2.25%
Sberbank of Russia, ADR		32,478		391,401

Food & Staples Retailing 3.46%
Magnit OJSC, GDR, 144A		9,800		603,753

Internet Software & Services 1.28%
Mail.ru Group Ltd, GDR, 144A		2,886		110,253
Mail.ru Group Ltd, GDR, 144A		2,934		112,087
				222,340

Metals & Mining 1.13%
Novolipetsk Steel OJSC, GDR, 144A		12,100		196,783

Oil, Gas & Consumable Fuels 2.16%
LUKOIL OAO, ADR		3,248		206,026
LUKOIL OAO, ADR		2,678		170,214
				376,240
Total Russia				1,790,517

South Africa 6.09%
Pharmaceuticals 3.41%
Aspen Pharmacare Holdings Ltd.^*		22,692		593,705

Wireless Telecommunication Services 2.68%
MTN Group Ltd.		23,948		467,390
Total South Africa				1,061,095

Taiwan 8.86%
Commercial Banks 2.38%
CTBC Financial Holding Co. Ltd.		634,044		414,049

Computers & Peripherals 1.13%
Simplo Technology Co. Ltd.		40,500		196,675

Shares

Value ($)

Semiconductors & Semiconductor Equipment 5.35%

Taiwan Semiconductor Manufacturing Co. Ltd.

274,000

931,629

Total Taiwan

1,542,353

Thailand 4.59%

Chemicals 1.53%

PTT Global Chemical PCL

112,300

267,466

Commercial Banks 1.38%

Kasikornbank PCL

42,400

239,968

Wireless Telecommunication Services 1.68%

Shin Corp. PCL, NVDR

110,500

292,271

Total Thailand

799,705

Turkey 1.77%

Wireless Telecommunication Services 1.77%

Turkcell Iletisim Hizmetleri AS^*

52,426

308,954

Total Turkey

308,954

United States 2.26%

IT Services 2.26%

Cognizant Technology Solutions Corp.^* —Class A

4,800

394,176

Total United States

394,176

Total Common Stocks
(Cost $12,685,794)

15,298,816

Interest
Rate (%)

Shares

Value ($)

Preferred Stocks 5.47%

Brazil 5.47%

Commercial Banks 2.58%

Itau Unibanco Holding S.A.

0.00

31,670

449,550

Independent Power Producers and Energy Traders 1.25%

AES Tiete S.A.

0.00

22,400

217,299

Metals and Mining 1.64%

Vale S.A. — A Shares

0.00

20,032

285,074

Total Brazil

951,923

Total Preferred Stocks
(Cost $934,185)

951,923

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


34		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – Global Emerging Markets Fund

as of September 30, 2013

Participatory Notes 4.49%


	Shares		Value ($)
India 4.49%
Automobiles 2.11%
Maruti Suzuki India Ltd., Issued by Morgan Stanley Asia Products, maturity date 08/11/14, 144A		7,956		173,014
Maruti Suzuki India Ltd., Issued by JP Morgan Structured Products, maturity date 12/21/15, 144A		9,042		195,127

Diversified Financial Services 0.64%
Infrastructure Development Finance Co. Ltd., Issued by JP Morgan Structured Products, maturity date 04/13/17, 144A		79,245		110,943

Tobacco 1.74%
ITC Ltd., Issued by JP Morgan Structured Products, maturity date 08/04/16, 144A		56,137		303,701
Total India				782,785
Total Participatory Notes (Cost $971,226)				782,785

Short-Term Investment 2.21%


	Shares		Value ($)
United States 2.21%
State Street Institutional Liquid Reserve, 0.07%^(a)		385,362		385,362
Total Short-Term Investment (Cost $385,362)				385,362
Total Investments 100.00% (Cost $14,976,567)				17,418,886
Liabilities Less Other Assets 0.0%				(860	)
Net Assets 100.00%				17,418,026

^*	Non-income producing security.

^(a)	Yield as of September 30, 2013.

ADR	— American Depositary Receipt.

GDR	— Global Depositary Receipt.

NVDR	— Non Voting Depositary Receipt.

Reg	S — Regulation S.

VALUATION INPUTS



Description	Level 1		Level 2		Level 3		Total
Common Stocks	$	4,702,333	$	10,596,483	$	—	$	15,298,816
Preferred Stocks		951,923		—		—		951,923
Participatory Notes		—		782,785		—		782,785
Short-Term Investment		—		385,362		—		385,362
Total Investments	$	5,654,256	$	11,764,630	$	—	$	17,418,886

As of September 30, 2013, $1,205,820 transferred from Level 2 to Level 1, based on the valuation input levels assigned to securities on September 30, 2012. This was a result of the security transferring from an inactive market at the time of pricing to an active market.

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


Nomura Partners Funds		The World from Asia			:				35

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations 90.13%


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Automotive 4.00%
Auto Loans 0.25%
General Motors Financial Co., Inc.
150,000		4.25		05/15/23	^(a)		137,437

Auto Parts & Equipments 3.66%
Affinia Group, Inc.
100,000		7.75		05/01/21	^(a)		103,000
American Axle & Manufacturing Holdings, Inc.
500,000		9.25		01/15/17	^(a)		535,005
Dana Holding Corp.
200,000		6.00		09/15/23			199,500
Exide Technologies, Inc.
75,000		8.63		02/01/18	^(b),(c)		54,750
Gestamp Funding Luxembourg SA
200,000		5.63		05/31/20	^(a)		200,000
EUR 200,000		5.88		05/31/20	^(a)		274,967
LKQ Corp.
50,000		4.75		05/15/23	^(a),(c)		46,500
Schaeffler Holding Finance BV
200,000		6.88		08/15/18	^(a)		210,500
400,000		4.75		05/15/21	^(a)		390,000
							2,014,222

Automakers 0.09%
Navistar International Corp.
50,000		8.25		11/01/21			50,875
Total Automotive							2,202,534

Banking 3.28%
Banking 3.28%
Ally Financial, Inc.
200,000		8.30		02/12/15			216,000
50,000		8.00		03/15/20			57,750
100,000		8.00		11/01/31			113,000
Bank of America Corp.
25,000		5.20		12/31/49	^(d)		22,000
Barclays Bank PLC
300,000		7.63		11/21/22			298,125
400,000		7.75		04/10/23	^(d)		411,000
JPMorgan Chase & Co.
100,000		5.15		12/31/49	^(d)		88,000
50,000		6.00		12/31/49	^(d)		47,125
Royal Bank of Scotland Group PLC
575,000		7.64		12/31/49	^(d)		552,000
Total Banking							1,805,000


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Basic Industry 8.42%
Building Materials 3.77%
Allegion US Holding Co.
25,000		5.75		10/01/21	^(a),(e)		25,188
American Builders & Contractors Supply Co., Inc.
50,000		5.63		04/15/21	^(a)		49,313
Associated Materials, LLC
25,000		9.13		11/01/17	^(a),(c)		26,688
Builders FirstSource, Inc.
75,000		7.63		06/01/21	^(a),(c)		75,187
Building Materials Holding Corp.
175,000		9.00		09/15/18	^(a)		179,375
Cemex SAB de CV
350,000		9.00		01/11/18	^(a)		378,875
CPG Merger Sub, LLC
100,000		8.00		10/01/21	^(a),(e)		102,125
Faenza GmbH
EUR 200,000		8.25		08/15/21	^(a)		278,687
Gibraltar Industries, Inc.
25,000		6.25		02/01/21	^(d)		25,375
HD Supply, Inc.
300,000		11.50		07/15/20			358,500
New Enterprise Stone & Lime Co., Inc.
108,680		13.00		03/15/18	^(a)		113,571
Nortek, Inc.
75,000		8.50		04/15/21			81,937
Rexel SA
200,000		5.25		06/15/20	^(a)		196,000
RSI Home Products, Inc.
75,000		6.88		03/01/18	^(a)		77,812
USG Corp.
100,000		6.30		11/15/16			106,250
							2,074,883

Chemicals 1.04%
Axiall Corp.
50,000		4.88		05/15/23	^(a),(c)		47,562
Eagle Spinco, Inc.
25,000		4.63		02/15/21	^(a),(c)		24,094
Hexion US Finance Corp.
150,000		6.63		04/15/20			150,750
NOVA Chemicals Corp.
50,000		5.25		08/01/23	^(a)		50,281
PolyOne Corp.
25,000		5.25		03/15/23	^(a),(c)		23,750
Taminco Global Chemical Corp.
45,000		9.75		03/31/20	^(a),(c)		51,075
TPC Group, Inc.
25,000		8.75		12/15/20	^(a),(c)		25,688

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


36		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations (continued)


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Basic Industry (continued)
Trinseo Materials Operating SCA
200,000		8.75		02/01/19	^(a)		199,500
							572,700

Forestry & Paper 0.85%
Ainsworth Lumber Co., Ltd.
225,000		7.50		12/15/17	^(a)		242,719
Appvion, Inc.
25,000		9.75		06/15/14			24,875
Boise Cascade Co.
25,000		6.38		11/01/20	^(a)		26,000
Resolute Forest Products, Inc.
200,000		5.88		05/15/23	^(a)		176,500
							470,094

Metals & Mining Excluding Steel 1.58%
Arch Coal, Inc.
250,000		7.25		06/15/21			190,625
Barminco Finance Pty Ltd.
25,000		9.00		06/01/18	^(a),(c)		22,938
Coeur d’Alene Mines Corp.
25,000		7.88		02/01/21	^(a),(c)		25,375
FMG Resources Pty Ltd.
100,000		8.25		11/01/19	^(a)		108,250
Murray Energy Corp.
50,000		8.63		06/15/21	^(a),(c)		50,375
Noranda Aluminum Acquisition Corp.
25,000		11.00		06/01/19	^(a),(c)		22,625
Peabody Energy Corp.
50,000		6.25		11/15/21			48,750
Thompson Creek Metals Co., Inc.
100,000		7.38		06/01/18			88,750
50,000		12.50		05/01/19			51,750
Walter Energy, Inc.
250,000		9.50		10/15/19	^(a)		259,687
							869,125

Steel Producers & Products 1.18%
AK Steel Corp.
125,000		8.38		04/01/22			105,937
Allegheny Technologies, Inc.
25,000		5.88		08/15/23			25,332
ArcelorMittal
100,000		10.35		06/01/19			123,500
50,000		5.75		08/05/20			51,375
100,000		6.00		03/01/21			103,250
150,000		7.50		10/15/39			143,625
Commercial Metals Co.
50,000		4.88		05/15/23			45,250


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Steel Dynamics, Inc.
25,000		6.38		08/15/22			26,000
United States Steel Corp.
25,000		6.88		04/01/21			25,437
							649,706
Total Basic Industry							4,636,508

Capital Goods 5.08%
Aerospace & Defense 0.33%
B/E Aerospace, Inc.
25,000		5.25		04/01/22			24,938
Colt Defense, LLC / Colt Finance Corp.
50,000		8.75		11/15/17			41,000
Erickson Air-Crane, Inc.
44,000		8.25		05/01/20	^(a),(c)		43,285
GenCorp, Inc.
25,000		7.13		03/15/21	^(a),(c)		26,312
Triumph Group, Inc.
50,000		4.88		04/01/21			48,375
							183,910

Diversified Capital Goods 0.83%
Harbinger Group, Inc.
25,000		7.88		07/15/19	^(a)		26,000
NANA Development Corp.
225,000		9.50		03/15/19	^(a)		227,250
Titan International, Inc.
25,000		7.88		10/01/17	^(a),(c)		26,675
75,000		6.88		10/01/20	^(a),(e)		75,937
Unifrax I, LLC
100,000		7.50		02/15/19	^(a)		100,500
							456,362

Machinery 0.67%
Cleaver-Brooks, Inc.
150,000		8.75		12/15/19	^(a)		162,562
Milacron, LLC
125,000		7.75		02/15/21	^(a)		129,688
Neovia Logistics International Holdings, LLC
75,000		10.00		02/15/18	^(a)		74,625
							366,875

Packaging 3.25%
Ball Corp.
25,000		5.00		03/15/22			24,375
BOE Intermediate Holding Corp.
75,000		9.00		11/01/17	^(a),(c),(d)		78,750
Mustang Merger Corp.
100,000		8.50		08/15/21	^(a)		99,500

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


Nomura Partners Funds		The World from Asia			:				37

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations (continued)


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Capital Goods (continued)
Owens-Brockway Glass Container, Inc.
250,000		7.38		05/15/16			282,500
Reynolds Group Issuer, Inc.
200,000		9.00		04/15/19			211,000
200,000		9.88		08/15/19			218,000
700,000		8.25		02/15/21			708,750
Sealed Air Corp.
25,000		8.38		09/15/21	^(a),(c)		28,437
25,000		5.25		04/01/23	^(a)		23,813
Tekni-Plex, Inc.
100,000		9.75		06/01/19	^(a)		113,000
							1,788,125
Total Capital Goods							2,795,272

Consumer Cyclical 5.32%
Apparel & Textiles 0.28%
Quiksilver, Inc. / QS Wholesale, Inc.
50,000		7.88		08/01/18	^(a)		52,375
75,000		10.00		08/01/20	^(a)		79,312
SIWF Merger Sub, Inc.
25,000		6.25		06/01/21	^(a),(c)		24,563
							156,250

Department Stores 0.21%
The Bon-Ton Department Stores, Inc.
125,000		8.00		06/15/21			117,500

Discount Stores 0.10%
99 Cents Only Stores
50,000		11.00		12/15/19			56,250

Food & Drug Retailers 0.64%
BI-LO, LLC / BI-LO Finance Corp.
150,000		8.63		09/15/18	^(a)		153,000
Rite Aid Corp.
25,000		7.70		02/15/27			25,750
50,000		6.88		12/15/28	^(a),(c)		47,625
Tops Holding II Corp.
125,000		8.75		06/15/18	^(a)		127,969
							354,344

Household & Leisure Products 0.13%
Gibson Brands, Inc.
25,000		8.88		08/01/18	^(a)		25,500
Icon Health & Fitness, Inc.
50,000		11.88		10/15/16	^(a)		43,000
							68,500


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Restaurants 1.87%
Checkers Drive-In Restaurants, Inc.
150,000		11.00		12/01/17	^(a)		162,750
Landry’s Holdings II, Inc.
675,000		10.25		01/01/18	^(a)		710,437
Landry’s, Inc.
100,000		9.38		05/01/20	^(a)		106,000
Seminole Hard Rock Entertainment, Inc.
50,000		5.88		05/15/21	^(a),(c)		48,094
							1,027,281

Specialty Retail 2.09%
Asbury Automotive Group, Inc.
25,000		8.38		11/15/20			27,687
Burlington Holdings, LLC
25,000		9.00		02/15/18	^(a),(c)		25,813
Claire’s Stores, Inc.
25,000		7.75		06/01/20	^(a),(c)		24,563
Express Finance Corp.
250,000		8.75		03/01/18			266,875
Michaels FinCo Holdings, LLC / Michaels FinCo, Inc.
175,000		7.50		08/01/18	^(a)		178,062
PC Nextco Holdings, LLC / PC Nextco Finance, Inc.
250,000		8.75		08/15/19	^(a)		251,250
Rent-A-Center, Inc.
175,000		4.75		05/01/21	^(a)		163,625
Sonic Automotive, Inc.
100,000		5.00		05/15/23			92,000
Spencer Spirit Holdings, Inc.
125,000		9.00		05/01/18	^(a)		122,500
							1,152,375
Total Consumer Cyclical							2,932,500

Consumer Non-Cyclical 3.33%
Consumer Products 1.53%
American Achievement Corp.
350,000		10.88		04/15/16	^(a)		362,688
Armored Autogroup, Inc.
200,000		9.25		11/01/18			181,500
NBTY, Inc.
250,000		9.00		10/01/18			275,625
Revlon Consumer Products Co.
25,000		5.75		02/15/21	^(a),(c)		24,156
							843,969

Food-Wholesale 1.65%
Barry Callebaut Services NV
200,000		5.50		06/15/23	^(a)		202,372
JBS USA, LLC / JBS USA Finance, Inc.
75,000		7.25		06/01/21	^(a)		74,625

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


38		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations (continued)


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Consumer Non-Cyclical (continued)
KeHE Distributors, LLC / KeHE Finance Corp.
25,000		7.63		08/15/21	^(a)		25,422
Post Holdings, Inc.
25,000		7.38		02/15/22	^(a)		26,406
US Foods, Inc.
525,000		8.50		06/30/19			555,844
Wells Enterprises, Inc.
25,000		6.75		02/01/20	^(a),(c)		25,562
							910,231

Tobacco 0.15%
North Atlantic Trading Co.
75,000		11.50		07/15/16	^(a)		80,813
Total Consumer Non-Cyclical							1,835,013

Energy 11.66%
Energy Exploration & Production 7.74%
Approach Resources, Inc.
50,000		7.00		06/15/21			50,250
Aurora USA Oil & Gas, Inc.
50,000		7.50		04/01/20	^(a),(c)		50,000
Chesapeake Energy Corp.
150,000		9.50		02/15/15			165,937
150,000		5.38		06/15/21			150,375
75,000		5.75		03/15/23			75,562
Continental Resources, Inc.
125,000		5.00		09/15/22			126,406
125,000		4.50		04/15/23			123,281
Denbury Resources, Inc.
25,000		4.63		07/15/23			23,000
Denver Parent Corp.
50,000		12.25		08/15/18	^(a)		49,750
Energy XXI Gulf Coast, Inc.
100,000		7.50		12/15/21	^(a)		99,000
EPE Holdings, LLC
625,737		8.13		12/15/17	^(a),(d)		656,242
Halcon Resources Corp.
525,000		8.88		05/15/21			540,750
Kodiak Oil & Gas Corp.
50,000		5.50		02/01/22	^(a)		49,000
Laredo Petroleum, Inc.
150,000		7.38		05/01/22			159,750
Magnum Hunter Resources Corp.
50,000		9.75		05/15/20	^(a)		52,000
125,000		9.75		05/15/20	^(a)		130,000
Midstates Petroleum Co., Inc.
150,000		9.25		06/01/21	^(a)		148,875
Northern Oil and Gas, Inc.
25,000		8.00		06/01/20			25,188


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Oasis Petroleum, Inc.
25,000		6.88		03/15/22	^(a)		26,438
Plains Exploration & Production Co.
175,000		6.75		02/01/22			187,440
Quicksilver Resources, Inc.
325,000		9.13		08/15/19			299,000
SandRidge Energy, Inc.
25,000		8.75		01/15/20			26,625
75,000		7.50		03/15/21			76,125
225,000		8.13		10/15/22			228,375
50,000		7.50		02/15/23			49,750
Seven Generations Energy Ltd.
50,000		8.25		05/15/20	^(a),(c)		51,875
Shelf Drilling Holdings Ltd.
600,000		8.63		11/01/18	^(a)		640,500
							4,261,494

Gas Distribution 1.23%
Hiland Partners Finance Corp.
25,000		7.25		10/01/20	^(a),(c)		26,188
LBC Tank Terminals Holding Netherlands BV
200,000		6.88		05/15/23	^(a)		202,000
Martin Midstream Partners LP / Martin Midstream Finance Corp.
25,000		7.25		02/15/21			25,406
Penn Virginia Resource Finance Corp. II
50,000		6.50		05/15/21	^(a),(c)		47,438
Sabine Pass Liquefaction, LLC
100,000		5.63		02/01/21	^(a),(c)		98,375
100,000		5.63		04/15/23	^(a)		96,375
Summit Midstream Finance Corp.
75,000		7.50		07/01/21	^(a)		77,812
Tesoro Logistics LP / Tesoro Logistics Finance Corp.
100,000		6.13		10/15/21			101,000
							674,594

Oil Field Equipment & Services 2.03%
Basic Energy Services, Inc.
25,000		7.75		02/15/19			25,375
CHC Helicopter SA
150,000		9.25		10/15/20			160,500
Expro Finance Luxembourg SCA
100,000		8.50		12/15/16	^(a)		105,375
Hercules Offshore, Inc.
150,000		10.50		10/15/17	^(a)		159,562
150,000		7.50		10/01/21	^(a)		150,750
Offshore Group Investment Ltd.
75,000		7.13		04/01/23			73,500
Pacific Drilling SA
150,000		5.38		06/01/20	^(a)		146,625

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


Nomura Partners Funds		The World from Asia			:				39

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations (continued)


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Energy (continued)
Seadrill Ltd.
200,000		6.13		09/15/20	^(a)		197,250
Seitel, Inc.
50,000		9.50		04/15/19			50,500
Tervita Corp.
50,000		8.00		11/15/18	^(a),(c)		50,438
							1,119,875

Oil Refining & Marketing 0.66%
United Refining Co.
325,000		10.50		02/28/18			364,000
Total Energy							6,419,963

Financial Services 5.33%
Banking 0.37%
Commerzbank AG
200,000		8.13		09/19/23	^(a)		204,500

Brokerage 1.33%
Cantor Commercial Real Estate Co. LP
25,000		7.75		02/15/18	^(a),(c)		25,563
KCG Holdings, Inc.
50,000		8.25		06/15/18	^(a)		49,500
LBG Capital No.1 PLC
600,000		8.00		12/31/49	^(a),(d)		629,280
Oppenheimer Holdings, Inc.
25,000		8.75		04/15/18			26,687
							731,030

Cons/Comm/Lease Financing 3.03%
ACE Cash Express, Inc.
100,000		11.00		02/01/19	^(a)		95,500
CIT Group, Inc.
75,000		5.00		05/15/17			79,219
iPayment Holdings, Inc.
104,750		15.00		11/15/18	^(d)		59,707
Nationstar Mortgage, LLC
50,000		6.50		08/01/18			50,500
250,000		9.63		05/01/19			279,375
225,000		6.50		06/01/22			214,312
Patriot Merger Corp.
100,000		9.00		07/15/21	^(a)		103,500
Prospect Holding Co. LLC / Prospect Holding Finance Co.
75,000		10.25		10/01/18	^(a)		73,312
SLM Corp.
25,000		3.88		09/10/15			25,625
100,000		5.50		01/15/19			99,138


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
125,000		8.00		03/25/20			135,469
150,000		5.50		01/25/23			138,091
Springleaf Finance Corp.
200,000		6.90		12/15/17			210,000
25,000		7.75		10/01/21	^(a)		26,063
25,000		8.25		10/01/23	^(a)		26,125
TMX Finance, LLC / TitleMax Finance Corp.
50,000		8.50		09/15/18	^(a)		52,500
							1,668,436

Investments & Misc Financial Services 0.51%
American Capital Ltd.
50,000		6.50		09/15/18	^(a)		50,750
Icahn Enterprises LP / Icahn Enterprises Finance Corp.
75,000		8.00		01/15/18			78,750
50,000		6.00		08/01/20	^(a)		50,250
Nuveen Investments, Inc.
100,000		9.13		10/15/17	^(a)		98,750
							278,500

Real Estate Investment Trusts (REITs) 0.09%
DuPont Fabros Technology LP
50,000		5.88		09/15/21	^(a)		50,250
Total Financial Services							2,932,716

Healthcare 5.58%
Health Care Providers & Services 0.44%
Healthcare Technology Intermediate, Inc.
75,000		7.38		09/01/18	^(a)		76,969
Service Corp. International
175,000		5.38		01/15/22	^(a)		167,344
							244,313

Health Facilities 2.42%
Alliance HealthCare Services, Inc.
25,000		8.00		12/01/16			25,750
Amsurg Corp.
25,000		5.63		11/30/20			25,125
CHS/Community Health Systems, Inc.
200,000		8.00		11/15/19			210,750
CRC Health Corp.
150,000		10.75		02/01/16			150,281
HCA Holdings, Inc.
150,000		7.75		05/15/21			159,937
HCA, Inc.
200,000		7.25		09/15/20			218,000
50,000		5.88		05/01/23			49,250
MPT Operating Partnership LP / MPT Finance Corp.
50,000		6.38		02/15/22			50,875

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


40		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations (continued)


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Healthcare (continued)
OnCure Holdings, Inc.
100,000		11.75		05/15/17	^(b),(c)		49,250
Tenet Healthcare Corp.
375,000		8.13		04/01/22	^(a)		392,344
							1,331,562

Managed Care 0.28%
MPH Intermediate Holding Co. 2
150,000		8.38		08/01/18	^(a)		154,219

Medical Products 1.14%
Alere, Inc.
50,000		6.50		06/15/20			49,813
Biomet, Inc.
75,000		6.50		08/01/20			77,812
Hologic, Inc.
25,000		6.25		08/01/20			26,156
Kinetic Concepts, Inc.
450,000		12.50		11/01/19			474,750
							628,531

Pharmaceuticals 1.30%
Pinnacle Merger Sub, Inc.
75,000		9.50		10/01/23	^(a)		77,531
Valeant Pharmaceuticals International
500,000		6.88		12/01/18	^(a)		531,250
50,000		6.75		08/15/18	^(a)		53,750
50,000		7.25		07/15/22	^(a),(c)		53,500
							716,031
Total Healthcare							3,074,656

Insurance 0.67%
Insurance Brokerage 0.09%
Onex USI Acquisition Corp.
50,000		7.75		01/15/21	^(a),(c)		50,250

Monoline Insurance 0.17%
MBIA Insurance Corp.
100,000		11.53		01/15/33	^(a)		68,000
MBIA, Inc.
25,000		7.15		07/15/27			23,750
							91,750

Property & Casualty 0.41%
Hockey Merger Sub 2, Inc.
225,000		7.88		10/01/21	^(a),(e)		226,406
Total Insurance							368,406


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Media 6.63%
Media Broadcast 1.83%
Clear Channel Communications, Inc.
250,000		10.75		08/01/16			225,625
69,814		11.00		08/01/16			63,181
125,000		9.00		12/15/19			123,125
Sinclair Television Group, Inc.
75,000		5.38		04/01/21	^(c)		71,625
75,000		6.38		11/01/21	^(a),(e)		75,750
Sirius XM Radio, Inc.
75,000		5.88		10/01/20	^(a)		75,844
75,000		4.63		05/15/23	^(a),(c)		68,625
Univision Communications, Inc.
150,000		6.88		05/15/19	^(a)		161,250
150,000		5.13		05/15/23	^(a)		144,375
							1,009,400

Media Cable 2.74%
Altice Finco SA
EUR 100,000		9.00		06/15/23	^(a),(e)		139,812
CCO Holdings Capital Corp.
150,000		5.13		02/15/23			138,375
125,000		5.75		09/01/23	^(a)		119,062
50,000		5.75		01/15/24			47,375
Cequel Communications Holdings I, LLC
100,000		5.13		12/15/21	^(a)		94,750
Cogeco Cable, Inc.
50,000		4.88		05/01/20	^(a),(c)		47,938
DISH DBS Corp.
50,000		4.25		04/01/18			50,312
50,000		5.13		05/01/20			49,750
75,000		6.75		06/01/21			79,219
100,000		5.00		03/15/23			93,250
Midcontinent Communications & Midcontinent Finance Corp.
25,000		6.25		08/01/21	^(a)		25,250
RCN Telecom Services, LLC / RCN Capital Corp.
75,000		8.50		08/15/20	^(a)		73,500
Unitymedia Hessen GmbH & Co.
200,000		5.50		01/15/23	^(a)		190,500
UPCB Finance VI Ltd.
150,000		6.88		01/15/22	^(a)		159,750
Virgin Media Finance PLC
200,000		6.38		04/15/23	^(a)		200,000
							1,508,843

Media Services 0.70%
Affinion Group, Inc.
150,000		11.50		10/15/15			131,250
Clear Channel Worldwide Holdings, Inc.
50,000		7.63		03/15/20			51,875

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


Nomura Partners Funds		The World from Asia			:				41

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations (continued)


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Media (continued)
Southern Graphics, Inc.
100,000		8.38		10/15/20	^(a)		104,000
The Nielsen Co. Luxembourg SARL
100,000		5.50		10/01/21	^(a)		100,375
							387,500

Printing & Publishing 1.36%
ARC Document Solutions, Inc.
25,000		10.50		12/15/16			26,250
MPL 2 Acquisition Canco, Inc.
75,000		9.88		08/15/18	^(a)		77,250
ProQuest Notes Co.
350,000		9.00		10/15/18	^(a)		353,500
RR Donnelley & Sons Co.
25,000		7.88		03/15/21			26,938
25,000		7.00		02/15/22			25,250
The McClatchy Co.
225,000		9.00		12/15/22			238,500
							747,688
Total Media							3,653,431

Real Estate 0.05%
Real Estate Investment Trusts (REITs) 0.05%
iStar Financial, Inc.
25,000		3.88		07/01/16			25,188
Total Real Estate							25,188

Services 12.15%
Airlines 0.77%
Air Canada
50,000		6.75		10/01/19	^(a)		49,812
50,000		8.75		04/01/20	^(a)		50,712
Air Canada 2013-1 Class B Pass Through Trust
25,000		5.38		11/15/22	^(a),(c)		24,125
Air Canada 2013-1 Class C Pass Through Trust
25,000		6.63		05/15/18	^(a),(c)		24,833
Continental Airlines 2012-3 Class C Pass Through Certificates
100,000		6.13		04/29/18			101,750
Hawaiian Airlines 2013-1 Class B Pass Through Certificates
25,000		4.95		01/15/22			22,938
United Airlines, Inc.
50,000		6.75		09/15/15	^(a),(c)		51,750
United Continental Holdings, Inc.
25,000		6.38		06/01/18			25,562
US Airways 2012-2 Class C Pass Through Trust
25,000		5.45		06/03/18			23,500


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
US Airways Group, Inc.
50,000		6.13		06/01/18			48,187
							423,169

Building & Construction 0.68%
Ashton Woods USA, LLC
150,000		6.88		02/15/21	^(a)		147,375
Beazer Homes USA, Inc.
50,000		7.25		02/01/23			48,250
DR Horton, Inc.
75,000		5.75		08/15/23			75,703
K Hovnanian Enterprises, Inc.
25,000		6.25		01/15/16			26,000
Meritage Homes Corp.
25,000		4.50		03/01/18			24,688
Woodside Homes Co., LLC / Woodside Homes Finance, Inc.
50,000		6.75		12/15/21	^(a)		50,250
							372,266

Gaming 1.59%
Caesars Entertainment Operating Co., Inc.
25,000		11.25		06/01/17	^(e)		25,438
50,000		8.50		02/15/20			46,156
100,000		9.00		02/15/20	^(e)		94,625
CityCenter Finance Corp.
325,000		10.75		01/15/17			350,187
MGM Resorts International
50,000		6.63		12/15/21			51,812
Mohegan Tribal Gaming Authority
25,000		9.75		09/01/21	^(a)		26,250
Peninsula Gaming Corp.
25,000		8.38		02/15/18	^(a),(c)		27,125
Pinnacle Entertainment, Inc.
25,000		7.50		04/15/21			27,313
PNK Finance Corp.
175,000		6.38		08/01/21	^(a)		179,375
Sugarhouse HSP Gaming Finance Corp.
50,000		6.38		06/01/21	^(a),(c)		48,000
							876,281

Hotels 0.74%
Hilton Worldwide Finance, LLC / Hilton Worldwide Finance Corp.
225,000		5.63		10/15/21	^(a),(e)		225,984
Playa Resorts Holding BV
150,000		8.00		08/15/20	^(a)		159,000
RHP Hotel Properties LP
25,000		5.00		04/15/21	^(a),(c)		23,563
							408,547

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


42		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations (continued)


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Services (continued)
Leisure 0.04%
MISA Investments Ltd.
25,000		8.63		08/15/18	^(a)		25,250

Railroads 0.19%
Florida East Coast Railway Corp.
50,000		8.13		02/01/17			52,688
Watco Finance Corp.
50,000		6.38		04/01/23	^(a),(c)		49,750
							102,438

Support Services 6.56%
APX Group, Inc.
475,000		8.75		12/01/20	^(a)		469,062
ARAMARK Corp.
75,000		5.75		03/15/20	^(a)		76,125
Avis Budget Car Rental, LLC / Avis Budget Finance, Inc.
100,000		5.50		04/01/23			93,000
BC Luxco 1 SA
150,000		7.38		01/29/20	^(a)		143,250
Brickman Group Holdings, Inc.
275,000		9.13		11/01/18	^(a)		295,625
Compiler Finance Sub, Inc.
50,000		7.00		05/01/21	^(a),(c)		49,500
Flexi-Van Leasing, Inc.
100,000		7.88		08/15/18	^(a)		104,000
Garda World Security Corp.
25,000		9.75		03/15/17	^(a),(c)		26,750
H&E Equipment Services, Inc.
25,000		7.00		09/01/22			26,750
Hertz Corp.
25,000		6.25		10/15/22			25,938
Igloo Holdings Corp.
325,000		8.25		12/15/17	^(a)		335,562
Monitronics International, Inc.
25,000		9.13		04/01/20	^(a)		26,313
Neff Finance Corp.
300,000		9.63		05/15/16	^(a)		321,000
NES Rentals Holdings, Inc.
125,000		7.88		05/01/18	^(a)		128,125
Pinnacle Operating Corp.
75,000		9.00		11/15/20	^(a)		76,969
ServiceMaster Co.
125,000		8.00		02/15/20			124,375
25,000		7.00		08/15/20			23,750
The Geo Group, Inc.
50,000		5.88		01/15/22	^(a),(e)		49,562
Travelport Holdings, Inc.
405,000		13.88		03/01/16	(a)		423,225
150,000		11.88		09/01/16			148,500


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Trionista Holdco GmbH
EUR 100,000		5.00		04/30/20	^(a)		137,314
Trionista TopCo GmbH
EUR 100,000		6.88		04/30/21	^(a),(d)		139,682
United Rentals North America, Inc.
275,000		10.25		11/15/19			312,125
50,000		8.25		02/01/21			55,750
							3,612,252

Theaters & Entertainment 0.36%
Cinemark USA, Inc.
25,000		5.13		12/15/22			23,562
Live Nation Entertainment, Inc.
25,000		7.00		09/01/20	^(a)		26,219
NAI Entertainment Holdings / NAI Entertainment Holdings Finance Corp.
100,000		5.00		08/01/18	^(a)		102,500
Regal Entertainment Group
25,000		5.75		06/15/23			23,687
25,000		5.75		02/01/25			23,188
							199,156

Transportation Excluding Air & Rail 1.22%
CMA CGM SA
300,000		8.50		04/15/17	^(a)		285,000
Hapag-Lloyd AG
EUR 100,000		7.75		10/01/18	^(a)		138,554
Jack Cooper Holdings Corp.
100,000		9.25		06/01/20	^(a)		107,250
Swift Services Holdings, Inc.
125,000		10.00		11/15/18			139,375
							670,179
Total Services							6,689,538

Technology & Electronics 6.54%
Electronics 1.63%
Artesyn Escrow, Inc.
100,000		9.75		10/15/20	^(a),(e)		101,000
Freescale Semiconductor, Inc.
75,000		5.00		05/15/21	^(a),(c)		71,625
Magnachip Semiconductor Corp.
50,000		6.63		07/15/21	^(a)		49,625
NXP Funding, LLC
200,000		3.75		06/01/18	^(a)		196,000
200,000		5.75		02/15/21	^(a)		204,000
200,000		5.75		03/15/23	^(a)		198,500
SunEdison, Inc.
75,000		7.75		04/01/19			78,000
							898,750

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


Nomura Partners Funds		The World from Asia			:				43

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations (continued)


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Technology & Electronics (continued)
Software & Services 3.87%
ACI Worldwide, Inc.
25,000		6.38		08/15/20	^(a)		25,500
Activision Blizzard, Inc.
125,000		5.63		09/15/21	^(a)		125,469
25,000		6.13		09/15/23	^(a)		25,188
Allen Systems Group, Inc.
50,000		10.50		11/15/16	^(a),(c)		30,625
Ancestry.com, Inc.
150,000		9.63		10/15/18	^(a)		150,750
250,000		11.00		12/15/20			286,250
Bankrate, Inc.
50,000		6.13		08/15/18	^(a)		50,125
BMC Software Finance, Inc.
125,000		8.13		07/15/21	^(a)		130,312
Ceridian HCM Holding, Inc.
50,000		11.00		03/15/21	^(a),(c)		58,125
Eagle Midco, Inc.
50,000		9.00		06/15/18	^(a),(c)		50,500
First Data Corp.
423,000		11.25		03/31/16			425,115
50,000		12.63		01/15/21			55,250
175,000		10.63		06/15/21	^(a),(c)		178,500
450,000		11.75		08/15/21	^(a)		436,500
iPayment, Inc.
75,000		10.25		05/15/18			54,000
VeriSign, Inc.
50,000		4.63		05/01/23	^(a),(c)		47,250
							2,129,459

Telecommunications Equipment 1.04%
Alcatel-Lucent USA, Inc.
200,000		8.88		01/01/20	^(a)		212,000
250,000		6.50		01/15/28			210,000
CommScope Holding Co., Inc.
150,000		6.63		06/01/20	^(a)		150,000
							572,000
Total Technology & Electronics							3,600,209

Telecommunication 9.62%
Telecom — Fixed Line 0.44%
EarthLink, Inc.
250,000		8.88		05/15/19			241,875

Telecom — Integrated/Services 3.85%
CenturyLink, Inc.
25,000		5.63		04/01/20			24,531
400,000		7.60		09/15/39			360,000


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Cincinnati Bell, Inc.
250,000		8.25		10/15/17			260,812
Equinix, Inc.
275,000		5.38		04/01/23			261,250
Frontier Communications Corp.
25,000		7.63		04/15/24			25,125
Intelsat Jackson Holdings SA
250,000		5.50		08/01/23	^(a)		235,000
Intelsat Luxembourg SA
25,000		6.75		06/01/18	^(a),(c)		26,063
100,000		8.13		06/01/23	^(a)		105,875
Level 3 Financing, Inc.
25,000		8.63		07/15/20			27,438
TW Telecom Holdings, Inc.
50,000		5.38		10/01/22	^(a)		47,875
125,000		6.38		09/01/23	^(a)		124,688
Windstream Corp.
443,000		7.50		04/01/23			439,677
200,000		6.38		08/01/23			184,000
							2,122,334

Wireless Telecommunication Services 5.33%
Crown Castle International Corp.
50,000		5.25		01/15/23			46,250
Digicel Ltd.
250,000		6.00		04/15/21	^(a)		235,625
Matterhorn Financing & CY SCA
EUR 100,000		9.00		04/15/19	^(a)		136,976
MetroPCS Wireless, Inc.
75,000		6.25		04/01/21	^(a)		75,656
375,000		6.63		04/01/23	^(a)		377,344
NII Capital Corp.
75,000		10.00		08/15/16			72,375
225,000		8.88		12/15/19			176,625
50,000		7.63		04/01/21			35,750
NII International Telecom SCA
125,000		7.88		08/15/19	^(a)		114,062
Sprint Capital Corp.
25,000		6.88		11/15/28			22,438
450,000		8.75		03/15/32			459,562
Sprint Communications, Inc.
100,000		8.38		08/15/17			113,500
Sprint Corp.
50,000		7.25		09/15/21	^(a)		50,625
625,000		7.88		09/15/23	^(a)		639,062
T-Mobile USA, Inc.
50,000		5.25		09/01/18	^(a)		51,063
Wind Acquisition Holdings Finance SA
331,375		12.25		07/15/17	^(a)		328,890
							2,935,803
Total Telecommunication							5,300,012

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


44		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – High Yield Fund

as of September 30, 2013

Corporate Obligations (continued)


Principal Amount ($)	Interest Rate (%)		Maturity Date			Value ($)
Utility 2.47%
Electric Generation 2.14%
Calpine Corp.
100,000		7.50		02/15/21	^(a)		106,750
25,000		7.88		01/15/23	^(a)		26,438
Dynegy, Inc.
75,000		5.88		06/01/23	^(a),(c)		68,625
Edison Mission Energy
320,000		7.00		05/15/17	(b)		213,600
Energy Future Intermediate Holding Co., LLC
139,972		11.25		12/01/18	^(a),(d)		93,081
100,000		12.25		03/01/22	^(a),(d)		113,000
GenOn Energy, Inc.
400,000		9.50		10/15/18			452,000
50,000		9.88		10/15/20			55,375
NRG Energy, Inc.
50,000		6.63		03/15/23			49,250
							1,178,119

Electric Integrated 0.33%
AES Corp.
50,000		8.00		10/15/17			57,750
25,000		4.88		05/15/23			23,500
Ameren Energy Generating Co.
100,000		7.00		04/15/18			84,250
25,000		6.30		04/01/20			19,312
							184,812
Total Utility							1,362,931
Total Corporate Obligations (Cost $49,697,802)							49,633,877

Senior Term Loans 5.55%^(d)

Automotive 0.52%
Auto Parts & Equipments 0.52%
Exide Technologies, Inc.
208,563		9.00		10/19/14	^(c)		209,084
Tower Automotive Holdings
74,812		4.75		04/23/20			75,093
Total Automotive							284,177

Basic Industry 0.23%
Building Materials 0.09%
CPG International, Inc.
50,000		4.75		09/30/20			49,781

Metals & Mining Excluding Steel 0.14%
Oxbow Carbon & Minerals, LLC
75,000		8.00		01/18/20			76,125
Total Basic Industry							125,906

Senior Term Loans (continued)

Principal
Amount ($)

Interest
Rate (%)

Maturity
Date

Value ($)

Capital Goods 0.09%

Aerospace & Defense 0.09%

Silver II US Holdings, LLC

49,625

4.00

12/13/19

^(c)

49,349

Total Capital Goods

49,349

Consumer Non-Cyclical 0.27%

Food-Wholesale 0.27%

Performance Food Group, Inc.

74,812

6.25

11/14/19

74,252

Pinnacle Foods Finance, LLC

74,625

3.25

04/29/20

^(c)

74,121

Total Consumer Non-Cyclical

148,373

Energy 0.68%

Energy Exploration & Production 0.50%

Fieldwood Energy, LLC

250,000

8.38

10/01/20

^(e)

250,156

NFR Energy, LLC

25,000

8.75

12/31/18

^(c)

25,125

275,281

Oil Field Equipment & Services 0.18%

Stallion Oilfield Holdings, Inc.

100,000

8.00

06/19/18

102,000

Total Energy

377,281

Financial Services 0.41%

Brokerage 0.18%

Knight Capital Group, Inc.

100,000

5.75

12/05/17

100,156

Investments & Misc Financial Services 0.23%

Guggenheim Partners Investment Mgmt

75,000

4.00

07/22/20

75,357

Orchard Acquisition Co., LLC

49,908

9.00

02/07/19

^(c)

50,313

125,670

Total Financial Services

225,826

Insurance 0.95%

Insurance Brokerage 0.95%

Lonestar International Super Holdings, LLC

500,000

11.00

09/02/19

523,750

Total Insurance

523,750

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


Nomura Partners Funds		The World from Asia			:				45

Schedule of Investments – High Yield Fund

as of September 30, 2013

Senior Term Loans (concluded)

Principal
Amount ($)

Interest
Rate (%)

Maturity
Date

Value ($)

Media 0.71%

Media Broadcast 0.18%

Univision Communications, Inc.

99,500

4.00

03/01/20

^(c)

98,738

Media Cable 0.13%

Altice Financing S.A.

75,000

5.50

07/15/19

73,875

Printing & Publishing 0.40%

Harland Clarke Holdings

223,281

7.00

05/22/18

^(c)

221,421

Total Media

394,034

Services 1.35%

Hotels 0.18%

Hilton Worldwide Finance, LLC

100,000

4.00

09/23/20

100,010

Support Services 0.59%

Sabre, Inc.

50,000

4.50

02/19/19

^(e)

49,906

Travelport, LLC

267,200

9.50

01/31/16

^(c)

276,663

326,569

Transportation Excluding Air & Rail 0.58%

American Airlines, Inc.

199,500

4.75

06/27/19

198,503

Commercial Barge Line Co.

125,000

10.75

03/22/20

^(c)

119,375

317,878

Total Services

744,457

Utility 0.34%

Texas Competitive Electric Holdings Company, LLC

275,000

5.50

10/10/17

^(c)

185,625

Total Utility

185,625

Total Senior Term Loans
(Cost $3,058,017)

3,058,778

Preferred Stocks 0.65%

Interest
Rate (%)

Shares

Value ($)

Banking 0.65%

Ally Financial,

Inc.^(a)

7.00

329

314,380

Ally Financial,

Inc.

8.50

1,100

29,458

GMAC Capital

Trust I

8.13

550

14,712

Total Banking

358,550

Total Preferred Stocks
(Cost $367,121)

358,550

Common Stock 0.11%

Insurance 0.11%

Ambac Financial Group, Inc. *

3,349

60,751

Total Insurance

60,751

Total Common Stock
(Cost $45,844)

60,751

Short-Term Investment 2.49%

State Street Institutional Liquid Reserve, 0.07%^(f)

1,368,965

Total Short-Term Investment
(Cost $1,368,965)

1,368,965

Total Investments 98.93%
(Cost $54,537,749)

54,480,921

Other Assets Less Liabilities 1.07%

587,093

Net Assets 100.00%

55,068,014

^*	Non-income producing security.

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


46		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Schedule of Investments – High Yield Fund

as of September 30, 2013

^(a)

Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the value of these securities amounted to $28,459,679 or 51.68% of net assets. Exempt securities that are also illiquid are as follows:


Security	Acquisition date	Cost	Market Value
Hapag-Lloyd AG, 7.75%, maturing 10/01/18	09/20/13	135,225	138,554
Air Canada, 8.75%, maturing 04/01/20	09/19/13	50,000	50,712
Air Canada, 6.75%, maturing 10/01/19	09/19/13	50,000	49,812
Allegion US Holding Co., 5.75%, maturing 10/01/21	09/27/13	25,000	25,188
American Capital Ltd., 6.50%, maturing 09/15/18	09/17/13	50,000	50,750
Artesyn Escrow, Inc., 9.75%, maturing 10/15/20	09/26/13	100,000	101,000
Associated Materials, LLC, 9.13%, maturing 11/01/17	04/23/13	26,500	26,688
BI-LO, LLC / BI-LO Finance Corp., 8.63%, maturing 09/15/18	09/17/13	247,500	153,000
Boise Cascade Co., 6.38%, maturing 11/01/20	08/12/13	25,875	26,000
CPG Merger Sub, LLC, 8.00%, maturing 10/01/21	09/24/13	100,000	102,125
Calpine Corp., 7.88%, maturing 01/15/23	09/19/13	27,125	26,438
Energy XXI Gulf Coast, Inc., 7.50%, maturing 12/15/21	9/23 & 9/24/13	100,000	99,000
The Geo Group, Inc., 5.88%, maturing 01/15/22	09/19/13	50,000	49,562
Garda World Security Corp., 9.75%, maturing 03/15/17	06/10/13	26,438	26,750
Hercules Offshore, Inc., 7.50%, maturing 10/01/21	9/17 & 9/18/13	150,000	150,750
Hilton Worldwide Finance, LLC / Hilton Worldwide Finance Corp., 5.63%, maturing 10/15/21	9/20 & 9/23/13	225,250	225,984
Hockey Merger Sub 2, Inc., 7.88%, maturing 10/01/21	09/17/13	250,000	226,406
Icon Health & Fitness, Inc., 11.88%, maturing 10/15/16	09/23/13	43,625	43,000
Virgin Media Finance PLC, 6.38%, maturing 04/15/23	09/18/13	200,000	200,000
Magnum Hunter Resources Corp., 9.75%, maturing 05/15/20	09/19/13	52,000	52,000
Monitronics International, Inc., 9.13%, maturing 04/01/20	07/11/13	50,000	26,313
The Nielsen Co. Luxembourg SARL, 5.50%, maturing 10/01/21	09/20/13	100,000	100,375
Pinnacle Merger Sub, Inc., 9.50%, maturing 10/01/23	09/18/13	75,000	77,531
Playa Resorts Holding BV, 8.00%, maturing 08/15/20	09/20/13	150,000	159,000
Prospect Holding Co. LLC / Prospect Holding Finance Co., 10.25%, maturing 10/01/18	09/18/13	72,872	73,312
Seadrill Ltd., 6.13%, maturing 10/01/18	09/20/13	200,000	197,250
Sinclair Television Group, Inc., 6.38%, maturing 11/01/21	09/26/13	75,000	75,750
Sirius XM Radio, Inc., 5.88%, maturing 10/01/20	09/19/13	75,000	75,844
Springleaf Finance Corp., 7.75%, maturing 10/01/21	09/17/13	25,000	26,063
Springleaf Finance Corp., 8.25%, maturing 10/01/23	09/17/13	25,000	26,125
Titan International, Inc., 6.88%, maturing 10/01/20	09/26/13	75,219	75,937
Titan International, Inc., 7.88%, maturing 10/01/17	03/06/13	26,563	26,675
Walter Energy, Inc., 9.50%, maturing 10/15/19	9/19 & 9/20/13	256,888	259,687

^(b)	Defaulted security.

^(c)	Illiquid security.

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


Nomura Partners Funds		The World from Asia			:				47

Schedule of Investments – High Yield Fund

as of September 30, 2013

^(d)	Variable rate security. The interest rate shown reflects the rate currently in effect.

^(e)	Security purchased on a when-issued basis.

^(f)	Yield as of September 30, 2013.

EUR	— Euro Currency

For reporting purposes, industry classifications are combined in this sector diversification chart. For industry classifications, please see the Schedule of Investments.


Credit Quality Breakdown^*
September 30, 2013


S&P Ratings
BBB			0.64%
BBB-			1.47%
BB+			3.76%
BB			9.13%
BB-			9.41%
B+			11.71%


S&P Ratings (continued)
B			13.15%
B-			11.67%
CCC+			21.94%
CCC			3.12%
CCC-			2.19%
CC			0.17%
C			0.12%
D			0.10%
NR			8.91%
Short-Term Investment			2.51%

Total			100.00%

^*	Expressed as a percentage of total investments (excluding securities lending collateral if applicable) and may vary over time.

NR — Not rated.

Security ratings disclosed, if any, are obtained from Standard & Poor’s/Moody’s Investors Service.

VALUATION INPUTS



Description	Level 1		Level 2		Level 3		Total
Corporate Obligations	$	—	$	49,633,877	$	—	$	49,633,877
Senior Term Loans		—		3,058,778		—		3,058,778
Preferred Stocks		44,170		314,380		—		358,550
Common Stock		60,751		—		—		60,751
Short-Term Investment		—		1,368,965		—		1,368,965
Total Investments	$	104,921	$	54,376,000	$	—	$	54,480,921

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


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Nomura Partners Funds		The World from Asia			:				49

Statements of Assets and Liabilities

As of September 30, 2013


	The Japan Fund ($)
Assets:
Investments, at value		184,329,949
Cash		—
Foreign currency		5,116,726
Receivable for investment securities sold		810,316
Receivable for Fund shares sold		371,589
Dividends and interest receivable		1,220,815
Receivable from investment advisor		—
Deferred offering costs		—
Prepaid expenses		3,163

Total Assets		191,852,558


Liabilities:
Payable for investments purchased		640,816
Dividends		—
Foreign currency overdraft		—
Payable for Fund shares redeemed		287,033
Accrued investment advisory fees		58,058
Accrued distribution fees		42,736
Accrued directors’ fees and expenses		14,378
Other accrued expenses and payables		190,509

Total Liabilities		1,233,530


Net Assets		190,619,028


Net assets consist of:
Paid-in capital		199,522,730
Accumulated net investment income (loss)		(965,312	)
Accumulated net realized gain (loss) on investments and foreign currency related transactions		(59,514,558	)
Net unrealized appreciation (depreciation) on:
Investments		51,799,657
Foreign currency related translations		(223,489	)


Net Assets		190,619,028


Net Assets
Class A		11,057,336
Class C		11,288,161
Class I		8,184,659
Class S		160,088,872

Capital Shares Outstanding
Class A		906,498
Class C		948,057
Class I		674,605
Class S		13,052,077

Net Asset Value and Offering Price Per Share
Class A		12.20
Class C		11.91
Class I		12.13
Class S		12.27

Offering Price Per Share
Class A (100/94.25 of net assets) (100/96.25 for High Yield Fund)		12.94
Investments at cost for non-affiliated issuers		132,530,292
Cost of cash denominated in foreign currencies		5,346,821

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


50		:		www.NomuraPartnersFunds.com : 1.800.535.2726


Asia Pacific ex Japan Fund ($)		Global Equity Income Fund ($)			Global Emerging Markets Fund ($)			High Yield Fund ($)

	7,821,607		7,774,796			17,418,886			54,480,921
	—		722			53,980			153,828
	307,690		83,495			32,556			—
	—		171,378			132,367			2,274,684
	1,196		57,000			22,084			138,729
	7,738		34,453			22,883			1,087,099
	36,048		25,445			18,815			44,592
	—		—			—			37,109
	946		795			946			—

	8,175,225		8,148,084			17,702,517			58,216,962



	206,096		269,060			210,021			3,062,618
	—		—			—			11,336
	—		—			—			74
	21		—			8,228			1,503
	—		—			—			—
	1,939		576			1,889			2,239
	4,887		4,831			5,285			7,369
	57,363		50,614			59,068			63,809

	270,306		325,081			284,491			3,148,948


	7,904,919		7,823,003			17,418,026			55,068,014



	6,839,582		5,703,533			16,687,542			54,434,040
	—		14,010			101,876			120,779
	72,724		440,171			(1,812,179	)		569,452

	992,530		1,665,685			2,442,319			(56,828	)
	83		(396	)		(1,532	)		571


	7,904,919		7,823,003			17,418,026			55,068,014



	3,691,414		514,195			4,432,139			5,271,077
	1,430,235		708,415			1,247,145			1,766,548
	2,783,270		6,600,393			11,738,742			48,030,389
	—		—			—			—


	254,387		37,122			336,196			515,310
	100,679		51,068			97,224			172,706
	190,441		476,907			882,061			4,694,415
	—		—			—			—


	14.51		13.85			13.18			10.23
	14.21		13.87			12.83			10.23
	14.61		13.84			13.31			10.23
	—		—			—			—


	15.40		14.69			13.98			10.63
	6,829,077		6,109,111			14,976,567			54,537,749
	307,646		83,553			32,479			(74	)

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


Nomura Partners Funds		The World from Asia			:				51

Statements of Operations

For the year ended September 30, 2013


	The Japan Fund ($)
Investment Income:
Dividend income		3,168,959
Less: foreign taxes withheld		(226,541	)
Interest income		—

Total investment income		2,942,418


Expenses:
Investment advisor fees		981,537
Transfer agent fees		615,410
Administration fees		322,127
Legal fees		158,209
Custodian fees		312,466
Compliance services fees		147,421
Directors’ fees and expenses		146,809
Distribution fees — Class A		11,889
Distribution fees — Class C		46,164
Distribution fees — Class S		100,039
Registration fees		58,202
Reports to shareholders		27,723
Audit fees and tax services		26,482
Amortization of offering costs		—
Organizational costs		—
Other expenses		65,503

Total expenses		3,019,981

Less: Fee waivers and expense reimbursements (see Note E)		(244,457	)
Net Expenses		2,775,524

Net Investment Income (Loss)		166,894


Net Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments		9,549,372
Foreign currency related transactions		(528,833	)


Total Realized Gain (Loss)		9,020,539

Net change in unrealized appreciation (depreciation) on:
Investments		34,192,762
Foreign currency related translations		(213,611	)


Net Change in Unrealized Appreciation (Depreciation)		33,979,151


Net Realized and Unrealized Gain (Loss)		42,999,690


Increase (Decrease) in Net Assets Resulting from Operations		43,166,584

^*	Fund commenced operations on December 27, 2012.

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


52		:		www.NomuraPartnersFunds.com : 1.800.535.2726


Asia Pacific ex Japan Fund ($)			Global Equity Income Fund ($)			Global Emerging Markets Fund ($)			High Yield Fund ($)^*

	203,151			305,605			401,132			11,422
	(21,413	)		(11,044	)		(44,446	)		—
	330			122			469			2,471,094

	182,068			294,683			357,155			2,482,516



	103,167			71,423			175,224			213,489
	50,628			12,579			76,609			19,372
	162,824			162,803			162,810			122,180
	26,895			8,100			30,812			42,449
	80,915			66,734			83,025			89,064
	29,681			29,546			40,647			40,554
	40,692			40,335			45,031			50,737
	10,009			951			8,344			5,107
	16,759			2,811			9,412			9,346
	—			—			—			—
	34,740			32,800			33,159			5,462
	18,959			17,246			19,348			18,572
	19,982			19,982			19,982			19,625
	—			—			—			110,739
	—			—			—			118,693
	21,730			19,960			22,141			1,656

	616,981			485,270			726,544			867,045

	(449,532	)		(382,307	)		(475,153	)		(573,416	)
	167,449			102,963			251,391			293,629

	14,619			191,720			105,764			2,188,887




	1,219,388			486,589			(733,500	)		581,900
	(26,703	)		977			1,737			(3,164	)


	1,192,685			487,566			(731,763	)		578,736


	(1,372,034	)		417,595			307,298			(56,828	)
	(176	)		(1,115	)		(2,766	)		571


	(1,372,210	)		416,480			304,532			(56,257	)


	(179,525	)		904,046			(427,231	)		522,479


	(164,906	)		1,095,766			(321,467	)		2,711,366

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


Nomura Partners Funds		The World from Asia			:				53

Statements of Changes in Net Assets


	The Japan Fund						Asia Pacific ex Japan Fund
	For the year ended September 30, 2013 ($)			For the year ended September 30, 2012 ($)			For the year ended September 30, 2013 ($)			For the year ended September 30, 2012 ($)
Operations:
Net investment income (loss)		166,894			551,201			14,619			27,159
Net realized gain (loss)		9,020,539			(10,810,787	)		1,192,685			(876,764	)
Net change in unrealized appreciation (depreciation)		33,979,151			9,620,932			(1,372,210	)		2,876,102

Net increase (decrease) in net assets resulting from operations		43,166,584			(638,654	)		(164,906	)		2,026,497


Distributions to shareholders from:
Net investment income:
Class A		(17,583	)		(31,601	)		(24,626	)		(8,456	)
Class C		(1,090	)		(662	)		—			—
Class I		(58,551	)		(461,326	)		(31,242	)		(45,131	)
Class S		(1,647,286	)		(819,990	)		—			—
Net realized gains:
Class A		—			—			—			—
Class C		—			—			—			—
Class I		—			—			—			—

Total distributions to shareholders		(1,724,510	)		(1,313,579	)		(55,868	)		(53,587	)


Share transactions (See Note H)
Proceeds from shares sold		30,287,715			16,091,967			4,166,937			5,688,368
Reinvestment of cash distributions		1,465,781			1,162,309			29,795			45,668
Cost of shares redeemed		(35,536,298	)		(102,927,051	)		(4,874,923	)		(12,149,073	)
Redemption fees		6,835			4,020			106			84

Net increase (decrease) in net assets from Fund share transactions		(3,775,967	)		(85,668,755	)		(678,085	)		(6,414,953	)


Increase (decrease) in net assets		37,666,107			(87,620,988	)		(898,859	)		(4,442,043	)

Net Assets
Beginning of year		152,952,921			240,573,909			8,803,778			13,245,821

End of year		190,619,028			152,952,921			7,904,919			8,803,778


Accumulated net investment income (loss)		(965,312	)		623,323			—			40,268

^*	Fund commenced operations on December 27, 2012.

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


54		:		www.NomuraPartnersFunds.com : 1.800.535.2726


Global Equity Income Fund						Global Emerging Markets Fund						High Yield Fund
For the year ended September 30, 2013 ($)			For the year ended September 30, 2012 ($)			For the year ended September 30, 2013 ($)			For the year ended September 30, 2012 ($)			For the period ended September 30, 2013 ($)^*

	191,720			215,431			105,764			124,524			2,188,887
	487,566			18,950			(731,763	)		(1,085,609	)		578,736
	416,480			1,069,732			304,532			2,419,889			(56,257	)

	1,095,766			1,304,113			(321,467	)		1,458,804			2,711,366




	(10,120	)		(8,584	)		(17,901	)		(954	)		(136,391	)
	(5,399	)		(1,514	)		(1,348	)		(21	)		(54,197	)
	(219,364	)		(222,020	)		(94,498	)		(35,296	)		(1,997,543	)
	—			—			—			—			—

	(1,392	)		(16,396	)		—			(46,786	)		—
	(503	)		(2,416	)		—			(13,883	)		—
	(39,686	)		(303,832	)		—			(1,195,313	)		—

	(276,464	)		(554,762	)		(113,747	)		(1,292,253	)		(2,188,131	)



	1,510,014			515,150			12,646,402			7,806,138			52,476,379
	203,304			529,833			72,051			1,167,490			2,162,510
	(2,825,709	)		(404,037	)		(5,610,669	)		(7,531,989	)		(94,116	)
	853			217			1,089			247			6

	(1,111,538	)		641,163			7,108,873			1,441,886			54,544,779


	(292,236	)		1,390,514			6,673,659			1,608,437			55,068,014


	8,115,239			6,724,725			10,744,367			9,135,930			—

	7,823,003			8,115,239			17,418,026			10,744,367			55,068,014


	14,010			46,116			101,876			108,122			120,779

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


Nomura Partners Funds		The World from Asia			:				55

Financial Highlights – The Japan Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


Class A	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class A	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	9.38		$	9.46		$	9.26		$	9.16		$	8.25
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.05			0.02			0.13			0.04			(0.06	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		2.84			(0.05	)		0.04	⁽ⁱ⁾		0.06			0.97	^(g)

Total income (loss) from investment operations		2.89			(0.03	)		0.17			0.10			0.91

Distributions to shareholders from:
Net investment income		(0.07	)		(0.05	)		(0.02	)		—			—
Net realized gains		—			—			—			—			—

Total distributions		(0.07	)		(0.05	)		(0.02	)		—			—

Redemption fees^(b)		—	^(h)		—	^(h)		0.05			—			—	^(h)

Net asset value, end of period	$	12.20		$	9.38		$	9.46		$	9.26		$	9.16

Total return (%)^(c)(d)		30.99			(0.34	)		2.34			1.09			11.03	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	11		$	5		$	7		$	—	^(e)	$	—	^(e)
Ratio of expenses before expense reductions/recoupment (%)^(f)		2.00			1.93			1.78			2.35			2.39	^**
Ratio of expenses after expense reductions/recoupments (%)		1.85			1.85			1.80			1.85			1.85	^**
Ratio of net investment income (loss) (%)		0.46			0.22			1.27			0.49			(0.98	)^**
Portfolio turnover rate (%)		62			34			54			47			140	^*
Class C	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class C	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	9.17		$	9.28		$	9.16		$	9.14		$	8.25
Income (loss) from investment operations:
Net investment income (loss)^(b)		(0.04	)		(0.05	)		0.04			(0.07	)		(0.02	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		2.79			(0.05	)		0.08	⁽ⁱ⁾		0.09			0.91	^(g)

Total income (loss) from investment operations		2.75			(0.10	)		0.12			0.02			0.89

Distributions to shareholders from:
Net investment income		(0.01	)		(0.01	)		—			—			—
Net realized gains		—			—			—			—			—

Total distributions		(0.01	)		(0.01	)		—			—			—

Redemption fees^(b)		—	^(h)		—	^(h)		—			—			—

Net asset value, end of period	$	11.91		$	9.17		$	9.28		$	9.16		$	9.14

Total return (%)^(c)(d⁾		30.08			(1.10	)		1.31			0.22			10.79	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	11		$	1		$	1		$	—	^(e)	$	—	^(e)
Ratio of expenses before expense reductions/recoupment (%)^(f)		2.70			2.69			2.56			3.02			3.14	^**
Ratio of expenses after expense reductions/recoupments (%)		2.60			2.60			2.54			2.60			2.60	^**
Ratio of net investment income (loss) (%)		(0.39	)		(0.54	)		0.45			(0.78	)		(0.41	)^**
Portfolio turnover rate (%)		62			34			54			47			140	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Class commenced operations on December 29, 2008.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Total return does not include the effects of sales charges.

^(e)	Amount represents less than $1,000,000.

^(f)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(g)

From the date of the class commencement on December 29, 2008 to the Fund’s fiscal year end, the Fund had a net realized and unrealized gain on investments and foreign currency transactions. Prior to December 29, 2008, the Fund had a net realized and unrealized loss on investments and foreign currency transactions.

^(h)	Amount represents less than $0.01 per share.

⁽ⁱ⁾

Realized and unrealized gain (loss) per share did not correlate to the aggregate of the net realized and unrealized loss in the Statements of Operations for the year ended September 30, 2011, primarily due to the timing of the sales and repurchases of the Fund’s shares in relation to fluctuating market values for the Fund’s portfolio.

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


56		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Financial Highlights – The Japan Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class I	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	9.36		$	9.44		$	9.24		$	9.21		$	8.25
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.01			(0.05	)		0.31			(0.01	)		0.04
Net realized and unrealized gain (loss) on investments and foreign currency transactions		2.89			0.03	^(g)		(0.12	)		0.12			0.92	^(e)

Total income (loss) from investment operations		2.90			(0.02	)		0.19			0.11			0.96

Distributions to shareholders from:
Net investment income		(0.13	)		(0.06	)		(0.03	)		(0.08	)		—
Net realized gains		—			—			—			—			—

Total distributions		(0.13	)		(0.06	)		(0.03	)		(0.08	)		—

Redemption fees^(b)		—	^(f)		—	^(f)		0.04			—	^(f)		—

Net asset value, end of period	$	12.13		$	9.36		$	9.44		$	9.24		$	9.21

Total return (%)^(c)		31.27			(0.24	)		2.46			1.16			11.64	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	8		$	7		$	78		$	1		$	2
Ratio of expenses before expense reductions/recoupment (%)^(d)		1.75			1.52			1.42			1.89			2.14	^**
Ratio of expenses after expense reductions/recoupments (%)		1.60			1.51			1.44			1.60			1.60	^**
Ratio of net investment income (loss) (%)		0.13			(0.50	)		3.13			(0.08	)		0.62	^**
Portfolio turnover rate (%)		62			34			54			47			140	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Class commenced operations on December 29, 2008.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(e)

^(f)	Amount represents less than $0.01 per share.

^(g)

Realized and unrealized gain (loss) per share did not correlate to the aggregate of the net realized and unrealized loss in the Statements of Operations for the year ended September 30, 2012, primarily due to the timing of the sales and repurchases of the Fund’s shares in relation to fluctuating market values for the Fund’s portfolio.

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


Nomura Partners Funds		The World from Asia			:				57

Financial Highlights – The Japan Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each year presented.


	Year Ended September 30,
Class S	2013			2012			2011			2010			2009
Selected Per Share Data
Net asset value, beginning of year	$	9.46		$	9.53		$	9.33		$	9.28		$	9.53
Income (loss) from investment operations:
Net investment income (loss)^(a)		0.01			0.04			0.03			(0.01	)		—	^(c)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		2.92			(0.06	)		0.19	^(e)		0.13			(0.23	)

Total income from investment operations		2.93			(0.02	)		0.22			0.12			(0.23	)

Distributions to shareholders from:
Net investment income		(0.12	)		(0.05	)		(0.02	)		(0.07	)		(0.02	)
Net realized gain		—			—			—			—			—

Total distributions		(0.12	)		(0.05	)		(0.02	)		(0.07	)		(0.02	)

Redemption fees^(a)(c)		—			—			—			—			—

Net asset value, end of year	$	12.27		$	9.46		$	9.53		$	9.33		$	9.28

Total return (%)^(b)		31.25			(0.17	)		2.34			1.29			(2.34	)
Ratio to Average Net Assets and Supplemental Data
Net assets, end of year (in millions)	$	160		$	140		$	155		$	173		$	194
Ratio of expenses before expense reductions/recoupment (%)^(d)		1.82			1.77			1.65			1.97			2.22
Ratio of expenses after expense reductions/recoupments (%)		1.67			1.68			1.65			1.68			1.75
Ratio of net investment income (loss) (%)		0.10			0.47			0.28			(0.12	)		(0.03	)
Portfolio turnover rate (%)		62			34			54			47			140

^(a)	Calculated based on average shares outstanding during the year.

^(b)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(c)	Amount represents less than $0.01 per share.

^(d)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(e)

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


58		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Financial Highlights – Asia Pacific ex Japan Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class A	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	14.79		$	12.42		$	16.53		$	15.31		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.03			0.02			0.09			0.09			0.09
Net realized and unrealized gain (loss) on investments and foreign currency transactions		(0.21	)		2.38			(1.89	)		2.88			5.22

Total income (loss) from investment operations		(0.18	)		2.40			(1.80	)		2.97			5.31

Distributions to shareholders from:
Net investment income		(0.10	)		(0.03	)		(0.14	)		(0.09	)		—
Net realized gains		—			—			(2.17	)		(1.66	)		—

Total distributions		(0.10	)		(0.03	)		(2.31	)		(1.75	)		—

Redemption fees^(b)		—	^(g)		—	^(g)		—	^(g)		—			—

Net asset value, end of period	$	14.51		$	14.79		$	12.42		$	16.53		$	15.31

Total return (%)^(c)(d)		(1.25	)		19.40			(13.22	)		20.88			53.10	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	4		$	4		$	3		$	—	^(e)	$	—	^(e)
Ratio of expenses before expense reductions (%)^(f)		6.55			4.71			4.61			9.04			14.19	^**
Ratio of expenses after expense reductions (%)		1.75			1.75			1.75			1.85			1.85	^**
Ratio of net investment income (loss) (%)		0.19			0.16			0.59			0.59			0.98	^**
Portfolio turnover rate (%)		118			54			42			125			123	^*


	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class C	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	14.49		$	12.23		$	16.40		$	15.22		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		(0.09	)		(0.08	)		(0.03	)		(0.08	)		0.02
Net realized and unrealized gain (loss) on investments and foreign currency transactions		(0.19	)		2.34			(1.85	)		2.92			5.20

Total income (loss) from investment operations		(0.28	)		2.26			(1.88	)		2.84			5.22

Distributions to shareholders from:
Net investment income		—			—			(0.12	)		—			—
Net realized gains		—			—			(2.17	)		(1.66	)		—

Total distributions		—			—			(2.29	)		(1.66	)		—

Redemption fees^(b)		—	^(g)		—	^(g)		—	^(g)		—			—

Net asset value, end of period	$	14.21		$	14.49		$	12.23		$	16.40		$	15.22

Total return (%)^(c)(d)		(1.93	)		18.48			(13.85	)		20.03			52.20	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	1		$	2		$	1		$	—	^(e)	$	—	^(e)
Ratio of expenses before expense reductions (%)^(f)		7.31			5.43			5.41			9.85			14.94	^**
Ratio of expenses after expense reductions (%)		2.50			2.50			2.50			2.60			2.60	^**
Ratio of net investment income (loss) (%)		(0.63	)		(0.56	)		(0.23	)		(0.54	)		0.17	^**
Portfolio turnover rate (%)		118			54			42			125			123	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Class commenced operations on December 29, 2008.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Total return does not include the effects of sales charges.

^(e)	Amount represents less than $1,000,000.

^(f)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(g)	Amount represents less than $0.01 per share.

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


Nomura Partners Funds		The World from Asia			:				59

Financial Highlights – Asia Pacific ex Japan Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class I	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	14.89		$	12.51		$	16.60		$	15.34		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.07			0.05			0.07			0.14			0.11
Net realized and unrealized gain (loss) on investments and foreign currency transactions		(0.21	)		2.39			(1.84	)		2.87			5.23

Total income (loss) from investment operations		(0.14	)		2.44			(1.77	)		3.01			5.34

Distributions to shareholders from:
Net investment income		(0.14	)		(0.06	)		(0.15	)		(0.09	)		—
Net realized gains		—			—			(2.17	)		(1.66	)		—

Total distributions		(0.14	)		(0.06	)		(2.32	)		(1.75	)		—

Redemption fees^(b)		—	^(e)		—	^(e)		—			—	^(e)		—

Net asset value, end of period	$	14.61		$	14.89		$	12.51		$	16.60		$	15.34

Total return (%)^(c)		(0.99	)		19.60			(12.99	)		21.17			53.40	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	3		$	3		$	8		$	9		$	8
Ratio of expenses before expense reductions (%)^(d)		6.27			4.18			4.65			8.15			13.94	^**
Ratio of expenses after expense reductions (%)		1.50			1.50			1.51			1.60			1.60	^**
Ratio of net investment income (loss) (%)		0.48			0.35			0.45			0.94			1.20	^**
Portfolio turnover rate (%)		118			54			42			125			123	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Class commenced operations on December 29, 2008.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(e)	Amount represents less than $0.01 per share.

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


60		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Financial Highlights – Global Equity Income Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class A	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	12.52		$	11.30		$	12.37		$	11.85		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.31			0.32			0.39			0.30			0.22
Net realized and unrealized gain (loss) on investments and foreign currency transactions		1.45			1.76			(0.57	)		0.69			1.76

Total income (loss) from investment operations		1.76			2.08			(0.18	)		0.99			1.98

Distributions to shareholders from:
Net investment income		(0.37	)		(0.34	)		(0.32	)		(0.25	)		(0.13	)
Net realized gains		(0.06	)		(0.53	)		(0.57	)		(0.22	)		—

Total distributions		(0.43	)		(0.87	)		(0.89	)		(0.47	)		(0.13	)

Redemption fees^(b)		—	^(g)		0.01			—			—			—

Net asset value, end of period	$	13.85		$	12.52		$	11.30		$	12.37		$	11.85

Total return (%)^(c)(d)		14.37			19.15			(2.08	)		8.50			20.03	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)^(e)	$	—		$	—		$	—		$	—		$	—
Ratio of expenses before expense reductions (%)^(f)		6.39			7.07			7.29			9.83			16.34	^**
Ratio of expenses after expense reductions (%)		1.50			1.50			1.50			1.75			1.75	^**
Ratio of net investment income (loss) (%)		2.32			2.63			3.06			2.55			2.94	^**
Portfolio turnover rate (%)		44			45			49			39			33	^*
	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class C	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	12.56		$	11.35		$	12.43		$	11.85		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.23			0.23			0.29			0.17			0.18
Net realized and unrealized gain (loss) on investments and foreign currency transactions		1.43			1.78			(0.57	)		0.73			1.75

Total income (loss) from investment operations		1.66			2.01			(0.28	)		0.90			1.93

Distributions to shareholders from:
Net investment income		(0.29	)		(0.27	)		(0.23	)		(0.10	)		(0.08	)
Net realized gains		(0.06	)		(0.53	)		(0.57	)		(0.22	)		—

Total distributions		(0.35	)		(0.80	)		(0.80	)		(0.32	)		(0.08	)

Redemption fees^(b)		—	^(g)		—			—			—			—

Net asset value, end of period	$	13.87		$	12.56		$	11.35		$	12.43		$	11.85

Total return (%)^(c)(d)		13.48			18.21			(2.80	)		7.61			19.41	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)^(e)	$	—		$	—		$	—		$	—		$	—
Ratio of expenses before expense reductions (%)^(f)		7.26			7.89			8.18			10.59			17.09	^**
Ratio of expenses after expense reductions (%)		2.25			2.25			2.26			2.50			2.50	^**
Ratio of net investment income (loss) (%)		1.72			1.88			2.29			1.46			2.37	^**
Portfolio turnover rate (%)		44			45			49			39			33	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Class commenced operations on December 29, 2008.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Total return does not include the effects of sales charges.

^(e)	Amount represents less than $1,000,000.

^(f)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(g)	Amount represents less than $0.01 per share.

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


Nomura Partners Funds		The World from Asia			:				61

Financial Highlights – Global Equity Income Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class I	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	12.50		$	11.30		$	12.36		$	11.86		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.32			0.34			0.38			0.28			0.24
Net realized and unrealized gain (loss) on investments and foreign currency transactions		1.48			1.77			(0.52	)		0.73			1.77

Total income (loss) from investment operations		1.80			2.11			(0.14	)		1.01			2.01

Distributions to shareholders from:
Net investment income		(0.40	)		(0.38	)		(0.35	)		(0.29	)		(0.15	)
Net realized gains		(0.06	)		(0.53	)		(0.57	)		(0.22	)		—

Total distributions		(0.46	)		(0.91	)		(0.92	)		(0.51	)		(0.15	)

Redemption fees^(b)		—	^(e)		—			—			—			—

Net asset value, end of period	$	13.84		$	12.50		$	11.30		$	12.36		$	11.86

Total return (%)^(c)		14.75			19.29			(1.78	)		8.70			20.34	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	7		$	8		$	6		$	7		$	6
Ratio of expenses before expense reductions (%)^(d)		6.06			6.85			7.20			9.91			16.09	^**
Ratio of expenses after expense reductions (%)		1.25			1.25			1.27			1.50			1.50	^**
Ratio of net investment income (loss) (%)		2.45			2.84			2.97			2.35			3.18	^**
Portfolio turnover rate (%)		44			45			49			39			33	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Class commenced operations on December 29, 2008.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(e)	Amount represents less than $0.01 per share.

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


62		:		www.NomuraPartnersFunds.com : 1.800.535.2726

Financial Highlights – Global Emerging Markets Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class A	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	13.39		$	13.05		$	16.67		$	15.62		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.11			0.12			0.15			(0.01	)		(0.05	)
Net realized and unrealized gain (loss) on investments and foreign currency transactions		(0.21	)		2.05			(2.29	)		2.23			5.67

Total income (loss) from investment operations		(0.10	)		2.17			(2.14	)		2.22			5.62

Distributions to shareholders from:
Net investment income		(0.11	)		(0.04	)		—			(0.09	)		—
Net realized gains		—			(1.79	)		(1.48	)		(1.08	)		—

Total distributions		(0.11	)		(1.83	)		(1.48	)		(1.17	)		—

Redemption fees^(b)		—	^(g)		—	^(g)		—			—			—

Net asset value, end of period	$	13.18		$	13.39		$	13.05		$	16.67		$	15.62

Total return (%)^(c)(d)		(0.81	)		18.45			(14.60	)		15.13			56.20	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	4		$	2		$	—	^(e)	$	—	^(e)	$	—	^(e)
Ratio of expenses before expense reductions (%)^(f)		5.07			5.16			5.56			7.84			13.58	^**
Ratio of expenses after expense reductions (%)		1.85			1.85			1.85			1.95			1.95	^**
Ratio of net investment income (loss) (%)		0.80			0.95			0.95			(0.10	)		(0.45	)^**
Portfolio turnover rate (%)		42			75			50			87			84	^*
	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class C	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	13.05		$	12.83		$	16.53		$	15.53		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.01			0.05			0.01			(0.13	)		0.08
Net realized and unrealized gain (loss) on investments and foreign currency transactions		(0.19	)		1.96			(2.23	)		2.22			5.45

Total income (loss) from investment operations		(0.18	)		2.01			(2.22	)		2.09			5.53

Distributions to shareholders from:
Net investment income		(0.04	)		—	^(g)		—			(0.01	)		—
Net realized gains		—			(1.79	)		(1.48	)		(1.08	)		—

Total distributions		(0.04	)		(1.79	)		(1.48	)		(1.09	)		—

Redemption fees^(b)		—	^(g)		—	^(g)		—			—			—

Net asset value, end of period	$	12.83		$	13.05		$	12.83		$	16.53		$	15.53

Total return (%)^(c)(d)		(1.42	)		17.42			(15.25	)		14.30			55.30	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	1		$	—	^(e)	$	—	^(e)	$	—	^(e)	$	—	^(e)
Ratio of expenses before expense reductions (%)^(f)		5.80			5.78			6.35			8.61			14.33	^**
Ratio of expenses after expense reductions (%)		2.60			2.60			2.60			2.70			2.70	^**
Ratio of net investment income (loss) (%)		0.07			0.39			0.09			(0.88	)		0.79	^**
Portfolio turnover rate (%)		42			75			50			87			84	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Class commenced operations on December 29, 2008.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Total return does not include the effects of sales charges.

^(e)	Amount represents less than $1,000,000.

^(f)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(g)	Amount represents less than $0.01 per share.

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


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Financial Highlights – Global Emerging Markets Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


	Year Ended September 30,												Period Ended September 30, 2009^(a)
Class I	2013			2012			2011			2010			Period Ended September 30, 2009^(a)
Selected Per Share Data
Net asset value, beginning of period	$	13.49		$	13.13		$	16.73		$	15.65		$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.10			0.13			0.12			0.02			0.14
Net realized and unrealized gain (loss) on investments and foreign currency transactions		(0.15	)		2.07			(2.24	)		2.24			5.51

Total income (loss) from investment operations		(0.05	)		2.20			(2.12	)		2.26			5.65

Distributions to shareholders from:
Net investment income		(0.13	)		(0.05	)		—			(0.10	)		—
Net realized gains		—			(1.79	)		(1.48	)		(1.08	)		—

Total distributions		(0.13	)		(1.84	)		(1.48	)		(1.18	)		—

Redemption fees^(b)		—	^(e)		—	^(e)		—	^(e)		—			—

Net asset value, end of period	$	13.31		$	13.49		$	13.13		$	16.73		$	15.65

Total return (%)^(c)		(0.44	)		18.64			(14.42	)		15.40			56.50	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	12		$	9		$	9		$	9		$	8
Ratio of expenses before expense reductions (%)^(d)		4.87			4.86			5.44			7.62			13.33	^**
Ratio of expenses after expense reductions (%)		1.60			1.60			1.61			1.70			1.70	^**
Ratio of net investment income (loss) (%)		0.76			0.98			0.75			0.12			1.58	^**
Portfolio turnover rate (%)		42			75			50			87			84	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Class commenced operations on December 29, 2008.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(e)	Amount represents less than $0.01 per share.

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


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Financial Highlights – High Yield Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


Class A	Period Ended September 30, 2013^(a)
Selected Per Share Data
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.50
Net realized and unrealized gain (loss) on investments and foreign currency transactions		0.21

Total income (loss) from investment operations		0.71

Distributions to shareholders from:
Net investment income		(0.48	)
Net realized gains		—

Total distributions		(0.48	)

Redemption fees^(b)		—

Net asset value, end of period	$	10.23

Total return (%)^(c)(d)		7.20	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	5
Ratio of expenses before expense reductions (%)^(e)		2.82	^**
Ratio of expenses after expense reductions (%)		1.10	^**
Ratio of net investment income (loss) (%)		6.48	^**
Portfolio turnover rate (%)		148	^*
Class C	Period Ended September 30, 2013^(a)
Selected Per Share Data
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.44
Net realized and unrealized gain (loss) on investments and foreign currency transactions		0.21

Total income (loss) from investment operations		0.65

Distributions to shareholders from:
Net investment income		(0.42	)
Net realized gains		—

Total distributions		(0.42	)

Redemption fees^(b)		—

Net asset value, end of period	$	10.23

Total return (%)^(c)(d)		6.63	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	2
Ratio of expenses before expense reductions (%)^(e)		3.67	^**
Ratio of expenses after expense reductions (%)		1.85	^**
Ratio of net investment income (loss) (%)		5.77	^**
Portfolio turnover rate (%)		148	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Fund commenced operations on December 27, 2012.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Total return does not include the effects of sales charges.

^(e)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

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


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Financial Highlights – High Yield Fund

The table below sets forth financial data for a share of the Fund outstanding throughout each period presented.


Class I	Period Ended September 30, 2013^(a)
Selected Per Share Data
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (loss)^(b)		0.51
Net realized and unrealized gain (loss) on investments and foreign currency transactions		0.22

Total income from investment operations		0.73

Distributions to shareholders from:
Net investment income		(0.50	)
Net realized gains		—

Total distributions		(0.50	)

Redemption fees^(b)		—	^(e)

Net asset value, end of period	$	10.23

Total return (%)^(c)		7.39	^*
Ratio to Average Net Assets and Supplemental Data
Net assets, end of period (in millions)	$	48
Ratio of expenses before expense reductions (%)^(d)		2.60	^**
Ratio of expenses after expense reductions (%)		0.85	^**
Ratio of net investment income (loss) (%)		6.71	^**
Portfolio turnover rate (%)		148	^*

^*	Not Annualized.

^**	Annualized.

^(a)	Fund commenced operations on December 27, 2012.

^(b)	Calculated based on average shares outstanding during the period.

^(c)	Shareholders redeeming shares held less than thirty days have a lower total return due to the effect of the 2% redemption fee.

^(d)	Reflects the expense ratio excluding any waivers and/or expense reimbursements for a Fund or share class.

^(e)	Amount represents less than $0.01 per share.

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


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Notes to Financial Statements

September 30, 2013

A. Organization

Nomura Partners Funds, Inc. (originally incorporated as The Japan Fund, Inc.) (the “Corporation”) was incorporated under the laws of the State of Maryland in 1961. Effective December 1, 2008, the Corporation changed its name from The Japan Fund, Inc. to Nomura Partners Funds, Inc. The Corporation is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Corporation currently consists of the following five series: The Japan Fund, Asia Pacific ex Japan Fund, Global Equity Income Fund, Global Emerging Markets Fund, and High Yield Fund (each individually a “Fund” and collectively, the “Funds”). Each Fund is classified as a diversified series of the Corporation under the 1940 Act. Greater China Fund, India Fund and International Equity Fund liquidated on September 27, 2013.

The Funds commenced operations on December 29, 2008, with the exception of The Japan Fund — Class S, which commenced operations in 1962, and High Yield Fund, which commenced operations on December 27, 2012. The Japan Fund — Class S shares are only available for purchase by current Class S shareholders who were Class S shareholders of record as of December 31, 2008, and for dividend and capital gain reinvestment of Class S shares by such shareholders.

The authorized capital stock of the Corporation consists of 1,400,000,000 shares of a par value of $0.33 1/3 divided among the classes of each Fund evenly, with all classes being authorized at 50,000,000 shares. 150,000,000 shares have been allocated to Funds or classes that are not currently in operation.

The investment objective of each of The Japan Fund, Asia Pacific ex Japan Fund and Global Emerging Markets Fund is to achieve long-term capital growth. The investment objective of Global Equity Income Fund is to achieve current income and long-term growth of capital through investing in relatively high dividend-paying stocks. The investment objective of High Yield Fund is to achieve current yield and capital growth.

The Corporation currently offers Classes A, C and I shares of all Funds. Class S shares of The Japan Fund are closed to new investors. Each share of each class of a Fund represents an equal pro rata interest in such Fund and provides the shareholder the same voting, dividend, and other rights, except that shareholders of each class of a Fund have exclusive voting rights regarding any matter relating solely to that particular class. Class A shares are subject to a 5.75% front end sales load (3.75% for High Yield Fund) and Class C shares are subject to a 1.00% contingent deferred sales charge for redemptions made within one year of purchase date.

B. Summary of Significant Accounting Policies

The Funds’ financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which requires management to make certain estimates and assumptions at the date of the financial statements that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Management has evaluated the impact of all events or transactions occurring after period end through the date these financial statements were issued, and has determined that, except as set forth in Note K, there were no subsequent events requiring recognition or disclosure. The following summarizes the significant accounting policies:

Security Valuation. Securities listed or otherwise traded on a securities exchange, market or automated quotation system for which quotations are readily available, including securities traded over the counter (“OTC”), are valued at their most recent sale price as of the close of regular trading on the primary exchange or market (foreign or domestic) on which they are traded, or if there is no such reported sale on the valuation date, at the most recent quoted bid price. If such prices are not available, the security will be valued in accordance with fair value methods (the “Fair Value Procedures”) approved by the Board of Directors (the “Board”). In the case of certain foreign exchanges, the closing price reported by the exchange (which may sometimes be referred to by the exchange or one or more pricing agents as the “official close” or the “official closing price” or other similar term) will be


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September 30, 2013

considered the most recent sale price. If a security is traded on more than one exchange, or upon one or more exchanges and in the OTC market, quotations are taken from the security’s primary exchange or market.

Debt securities are priced based upon valuations provided by independent, third party pricing agents, if available. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Such methodologies generally consider such factors as security prices, yields, maturities, call features, ratings and developments relating to specific securities in arriving at valuations. On the first day a new debt security purchase is recorded, if a price is not available on the automated pricing feeds from the Funds’ primary and secondary pricing vendors nor is it available from an independent broker, the security may be valued at its purchase price. Each day thereafter, the debt security will be valued according to the Funds’ Fair Value Procedures until an independent source can be secured. Debt securities with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value.

Participatory notes are valued based on the current day’s price of the underlying securities if a quoted price is not available.

Following the valuations of securities or other portfolio assets in terms of the currency in which the market quotation used is expressed (“Local Currency”), the value of these portfolio assets in terms of U.S. Dollars is calculated by converting the Local Currency into U.S. Dollars at the prevailing currency exchange rate on the valuation date.

Redeemable securities issued by open-end investment companies are valued at the investment company’s applicable net asset value (“NAV”), with the exception of exchange-traded open-end investment companies which are priced as equity securities as described above.

If market quotations, official closing prices, or information furnished by a pricing service are not readily available or do not accurately reflect fair value, or if a security’s value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded, including, but not limited to, when (i) the security’s trading has been halted or suspended; (ii) the security has been de-listed from a national exchange; (iii) the security’s primary trading market is temporarily closed at a time when under normal conditions it would be open; (iv) the security has not been traded for an extended period of time; (v) the security’s primary pricing source is not able or willing to provide a price; (vi) trading of the security is subject to local government-imposed restrictions; and (vii) a significant event with respect to a security or securities has occurred after the close of the market or exchange on which the security or securities principally trades and before the time the Funds calculate NAVs, that security will be valued by another method that the Board believes accurately reflects fair value in accordance with the Funds’ Fair Value Procedures.

These events may create arbitrage opportunities that may enable short-term traders to dilute the NAV of long-term investors. Securities trading in overseas markets present time zone arbitrage opportunities when events affecting portfolio security values occur after the close of overseas markets but prior to the close of U.S. market. The Fair Value Procedures, therefore, include a procedure whereby foreign securities’ prices may be “fair valued” by an independent pricing service, in accordance with a valuation policy approved by the Board to take those factors into account. At September 30, 2013, foreign securities representing the following percentages of net assets of the Funds were valued using fair value prices based on those adjustments and are classified as using Level 2 inputs within the valuation inputs disclosure on each Fund’s Schedule of Investments:



Funds
The Japan Fund	96.7	%
Asia Pacific ex Japan Fund	88.3	%
Global Equity Income Fund	48.1	%
Global Emerging Markets Fund	60.8	%
High Yield Fund	N/A


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Pursuant to the Fair Value Procedures for the Funds, the Board has delegated day-to-day responsibility for fair value determinations to the Corporation’s Pricing and Fair Valuation Committee. Fair value determinations are subject to review, approval or ratification by the Board.

At September 30, 2013, the total value of securities held that were fair valued using methods determined in good faith by the Corporation’s Pricing and Fair Valuation Committee represented approximately 0.55%, 5.15%, 10.37% and 0.05% of the net assets for The Japan Fund, Asia Pacific ex Japan Fund, Global Emerging Markets Fund and High Yield Fund, respectively. These securities are classified as using Level 2 inputs within the valuation inputs disclosure on the Funds’ Schedule of Investments. At September 30, 2013, Global Equity Income Fund did not have any fair value determinations other than noted above.

There can be no assurance that a fair value used by the Funds on any given day will more accurately reflect the market value of a security or securities than the market price of such security or securities. A security’s valuation may differ depending on the method used for determining value. Fair valuation of a Fund’s portfolio securities can serve to reduce arbitrage opportunities available to short-term traders, but there is no assurance that the Fair Value Procedures will prevent dilution of a Fund’s NAV by short-term traders.

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. These inputs are summarized into the three broad levels listed below. Each Fund’s hierarchy can be found on the Fund’s Schedule of Investments.

Level 1 — quoted unadjusted prices for identical instruments in active markets to which a Fund has access at the date of measurement.

Level 2 — quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.

Level 3 — model-derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect a Fund’s own assumptions that market participants would use to price the asset or liability based on the best available information.

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The Funds’ policy is to disclose transfers between Levels based on valuations at the end of the reporting period. Each Fund may hold securities which are periodically fair valued in accordance with the Funds’ Fair Value Procedures. This may result in movements between Level 1 and Level 2 throughout the year. There were no additional transfers between Level 1, 2, or 3 as of September 30, 2013, based on the valuation input Levels on September 30, 2012 for the Funds, other than what was disclosed following each Fund’s Schedule of Investments.

Real Estate Investment Trust. Each Fund is permitted to invest in real estate investment trusts (“REIT“s). If a Fund invests in a REIT, such Fund will be subject to the risks associated with owning real estate and with the real estate industry generally. These risks include difficulties in valuing and disposing of real estate, the possibility of declines in the value of real estate, risks related to general and local economic conditions, the possibility of adverse changes in real estate markets, environmental liability risks, the risk of increases in property taxes and operating expenses, possible adverse changes in zoning laws, the risk of casualty or condemnation losses, limitations on rents, and the possibility of adverse changes in interest rates. To the extent a Fund invests in REITs, it will also be subject to the risk that a REIT will default on its obligations or go bankrupt. By investing in REITs indirectly through a Fund, a shareholder will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly, similar expenses of the REITs.


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Restricted Securities. Each Fund is permitted to invest in restricted securities. Restricted securities are subject to legal restrictions on their sale. Difficulty in selling securities may result in a loss or be costly to the Funds. Restricted securities generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933, as amended, or in a registered public offering. Where registration is required, the holder of a registered security may be obligated to pay all or part of the registration expense and a considerable period may elapse between the time it decides to seek registration and the time it may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, the holder might obtain a less favorable price than prevailed when it decided to seek registration of the security.

Participatory Notes. Each Fund may invest in participatory notes. Participatory notes, which may be issued in various structures and may be designated by different terms, including, but not limited to, P-Notes and warrants, are instruments that derive their value from an underlying or referenced financial instrument, such as an equity share. Generally, non-U.S.-based brokerages buy locally-based securities and then issue participatory notes to investors. Participatory notes are subject to both investment risk relating to the underlying or referenced financial instrument and credit risk based on the uncertainty of the counterparty’s (i.e., the non-U.S.-based broker’s) ability to meet its obligations.

Foreign Currency. The books and records of the Funds are maintained in U.S. Dollars. The valuation of investment securities and other assets and liabilities that are denominated in a foreign currency are translated into U.S. Dollars at the prevailing exchange rates each business day. Purchases and sales of investment securities, income and expenses are translated into U.S. Dollars at the prevailing exchange rates on the respective dates of the transactions.

Net realized and unrealized gains and losses on foreign currency transactions represent net gains and losses between trade and settlement dates on securities transactions, the disposition of forward foreign currency exchange contracts and foreign currencies, and the difference between the amount of net investment income accrued and the U.S. Dollar amount actually received. That portion of both realized and unrealized gains and losses on investments that results from fluctuations in foreign currency exchange rates are not separately disclosed but are included with net realized and unrealized gains and losses on investment securities.

Dividends and Distributions of Income and Gains to Shareholders. Distributions to shareholders of net investment income and capital gains, if any, are declared and paid annually on all Funds with the exception of Global Equity Income Fund and High Yield Fund. Global Equity Income Fund intends to declare and pay dividends of all or a portion of its net investment income on a quarterly basis to shareholders. High Yield Fund intends to declare and pay dividends of all or a portion of its net investment income on a monthly basis to shareholders. Both Global Equity Income Fund and High Yield Fund will distribute its realized capital gains, if any, annually. All Funds will record their distributions on the Funds’ ex-dividend date.

Distributions are determined in accordance with applicable Federal income tax regulations, which may differ from GAAP. These differences are due to differing treatments of income and gain on various securities held by the Funds, timing differences and differing characterizations of distributions made by other funds in which the Funds may invest.

Security Transactions, Investment Income and Realized Gain and Loss. For financial reporting purposes, investment transactions are accounted for on the trade date. Interest income, which includes amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Amortization of premium and Accretion of discount are calculated using the effective yield to maturity method. Dividend income is recorded on the ex-dividend date net of foreign withholding taxes, if any. Foreign dividend income is recorded on the ex-dividend date or as soon as practical after a Fund determines the existence of a dividend declaration after exercising reasonable due diligence. Gains or losses realized on sales of investment transactions and unrealized appreciation and depreciation are recorded on an identified cost basis.


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Federal Taxes. Each Fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and distribute substantially all of its taxable income to shareholders. Therefore, no provision for Federal income tax or excise tax is required.

Each Fund may be subject to taxes imposed by countries in which it invests. Such taxes are generally based on income and/or capital gains earned or repatriated. Taxes are accrued and applied to net investment income, net realized gains and unrealized appreciation as such income and/or gains are earned.

Each Fund recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has analyzed the Funds’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2010-2012), or expected to be taken in the Funds’ 2013 tax returns. The Funds identify their major tax jurisdictions as United States of America, the State of Maryland and foreign jurisdictions. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

Income and Expense Allocation. Each Fund’s class-specific expenses are charged to the operations of that class of shares. Income and expenses (other than expenses attributable to a specific class) and realized and unrealized gains or losses on investments are allocated to each class of shares based on the class’ respective net assets to the total net assets of each Fund.

Offering and Organizational Costs. Organizational costs for the Funds consist of incorporation fees and legal fees. These costs are expensed as incurred and are reflected on the Statements of Operations. Offering costs for the Funds consist of fees related to the mailing and printing of the initial prospectus, certain startup legal costs, and initial registration filings. Such costs are amortized over a twelve-month period beginning with the commencement of operations of the Funds. Amounts amortized in the current period are reflected on the Statements of Operations. Offering costs incurred and expensed for the year ended September 30, 2013 were as follows:



Fund	Costs Incurred		Costs Expensed
High Yield Fund	$	147,848	$	110,739

Redemption Fees. A shareholder who redeems Class A, Class C or Class I shares of all Funds or Class S shares of The Japan Fund within thirty days of purchase will incur a redemption fee of 2.00% of the current NAV of the shares, subject to certain exceptions. The fee will be assessed and retained by the Funds for the benefit of remaining shareholders. The redemption fee is accounted for as an addition to paid-in-capital and is reported on the Statements of Changes in Net Assets and Financial Highlights (on a per share basis). The Funds reserve the right to modify the term of or terminate this fee at any time.

C. Purchases and Sales of Securities

The cost of purchases and the proceeds from sales of investment securities, excluding short-term investments, for the year ended September 30, 2013, were as follows:



Fund	Purchases		Sales
The Japan Fund	$	99,077,602	$	108,185,052
Asia Pacific ex Japan Fund		10,433,144		11,582,146
Global Equity Income Fund		3,422,509		4,559,159
Global Emerging Markets Fund		12,799,396		5,946,430
High Yield Fund		109,562,476		57,246,308


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D. Investment Advisory Fees, Administrator and Other Service Providers

Investment Advisor and Operations Service Agent. Nomura Asset Management U.S.A. Inc. (“NAM USA”) is the investment advisor for the Funds pursuant to an Investment Advisory Agreement. NAM USA determines the securities, instruments and other contracts relating to investments to be purchased, sold or entered into by the Funds. NAM USA directs the investments of the Funds, in accordance with the investment objectives, policies, and limitations of the Funds subject to the general supervision and control of the Board and officers of the Corporation.

For these and other services, each Fund pays NAM USA a monthly investment advisory fee at an annual rate of the Fund’s average daily net assets as follows:



The Japan Fund		0.60% on the first $200 million; 0.55% on the next $200 million; and 0.50% on the Fund’s average daily net assets in excess of $400 million.
Asia Pacific ex Japan Fund		1.10% on the first $1 billion; 1.00% on the next $1 billion; and 0.95% on the Fund’s average daily net assets in excess of $2 billion.
Global Equity Income Fund		0.90% on the first $500 million; 0.85% on the next $500 million; 0.80% on the next $500 million; 0.75% on the next $500 million; and 0.70% on the Fund’s average daily net assets in excess of $2 billion.
Global Emerging Markets Fund		1.20% on the first $1 billion; 1.10% on the next $1 billion; and 1.00% on the Fund’s average daily net assets in excess of $2 billion.
High Yield Fund		0.65% on the Fund’s average daily net assets.

NAM USA has agreed to waive and/or reimburse certain expenses. Please see Note E for further information.

NAM USA, with respect to each Fund, has entered into a sub-advisory agreement (each, a “Sub-Advisory Agreement”) with the sub-advisors set forth below, pursuant to which the sub-advisor provides certain investment advisory services to NAM USA with respect to a Fund:



Funds		Sub-Advisor(s)
The Japan Fund		Nomura Asset Management Co., Ltd.
Asia Pacific ex Japan Fund		Nomura Asset Management Singapore Limited (“NAM Singapore”)
Global Equity Income Fund		NAM Singapore, Nomura Asset Management U.K. Limited
Global Emerging Markets Fund		Martin Currie, Inc.
High Yield Fund		Nomura Corporate Research and Assets Management Inc.

Each sub-advisor receives compensation for its services out of NAM USA’s investment advisory fee.

NAM USA also serves as the operations services agent for the Corporation, pursuant to an Operations Services Agreement. Pursuant to this agreement, NAM USA provides management services to the Corporation, to oversee and administer its day-to-day operations. NAM USA receives no fees pursuant to this agreement, but may be reimbursed for reasonable out-of-pocket expenses incurred in carrying out its duties as operations services agent.

Administrator, Accountant, and Custodian. State Street Bank and Trust Company (“State Street”) provides administration services as administrator to the Funds (the “Administrator”), pursuant to an Administration


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Agreement. For its services, the Administrator receives fees from the Funds calculated daily and paid monthly at an annual rate of 0.10% of average daily net assets with reductions as average daily net assets increase to certain levels and are subject to certain minimum requirements.

The Administrator also receives fees for certain additional services and reimbursement for out-of-pocket expenses. The Administrator or its affiliates do not pay any Fund fees, expenses or costs.

State Street also serves as custodian (the “Custodian”) and fund accounting agent to the Funds pursuant to a Master Custodian and Accounting Services Agreement. The Custodian attends to the collection of principal and income, and payment for and collection of proceeds of securities bought and sold by the Funds. For these services, the Funds pay State Street asset-based and transactional fees that vary according to the size of positions and number of transactions plus out-of-pocket fees.

Distributor. Foreside Fund Services, LLC serves as the Funds’ distributor (the “Distributor”). Each Fund has adopted plans (the “Plans”) that allow the Funds to pay distribution fees for the sale of their shares under Rule 12b-1 of the 1940 Act, and shareholder servicing fees for certain services provided to their shareholders. Each Fund has adopted a Plan for each of its Class A and Class C shares, and The Japan Fund has adopted a Plan for its Class S shares. Each Fund pays the Distributor or any other entity providing support services to their customers an aggregate fee of 0.25% of the average daily net assets of a Fund’s Class A shares and 1.00% of the average daily net assets of a Fund’s Class C shares. With respect to Class C shares, the Distributor may use up to 0.75% of the fees for distribution and sales support services. The Distributor is reimbursed for fees paid to various institutions for distribution and shareholder services provided to the S Class of The Japan Fund in an amount up to 0.25% of the average daily net assets of the Class S shares of The Japan Fund.

For the year ended September 30, 2013, the Distributor did not retain any of the front-end sales charges assessed on the sale of Class A shares. For the year ended September 30, 2013, the Distributor did not retain any commissions from contingent deferred sales charges assessed on redemptions of Class C shares.

Other Service Providers. Boston Financial Data Services (“BFDS”) serves as the Funds’ transfer and dividend-paying agent (“Transfer Agent”) pursuant to a Transfer Agency and Services Agreement, and performs bookkeeping, data processing and administrative services for the maintenance of shareholder accounts.

Pursuant to a Compliance Services Agreement (the “Compliance Agreement”), Foreside Compliance Services, LLC (“FCS”), an affiliate of the Distributor, provides an Anti-Money Laundering Compliance Officer, a Chief Compliance Officer and certain additional compliance support functions to the Funds.

Pursuant to the Compliance Agreement, Foreside Management Services, LLC (“FMS”), an affiliate of the Distributor, provides a Principal Executive Officer and a Principal Financial Officer to the Funds.

The Principal Executive Officer, an officer of the Funds, is a control affiliate and an officer of the Distributor. Fees paid to FCS and FMS pursuant to the Compliance Agreement are reflected on the Statements of Operations within the caption “Compliance Services Fees”. Neither the Distributor, FCS nor FMS, nor any of their officers or employees who serve as an officer of the Funds, has any role in determining the Funds’ investment policies or which securities are to be purchased or sold by the Funds.

Directors’ and Officers’ Fees and Expenses. During the year ended September 30, 2013, retainer and meeting fees were as follows:



Quarterly Retainer for each Director	$	12,500
Additional Quarterly Retainer for the Chairman of the Board		12,500
Additional Quarterly Retainer for the Chairman of the Audit Committee and the Chairman of the Investment Oversight Committee (“IOC”)		1,500
Additional Quarterly Retainer for the Compensation Committee Chair		1,000


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September 30, 2013



Quarterly Regular Board Meeting Fee	$	4,000
Special Non-Quarterly Board Meeting Fee		1,500
Audit Committee Meeting Fee		3,000
Executive Committee Meeting Fee		1,500
Investment Oversight Committee Meeting Fees		3,000

The Funds will also reimburse each of the Directors for out-of-pocket expenses incurred in connection with attending the Board meetings.

Certain officers of the Funds are also officers or employees of the above named service providers, and during their terms of office, receive no compensation from the Funds.

E. Fee Waivers and Expense Reimbursements

With respect to Class A, Class C and Class I shares of each Fund, and with respect to Class S shares of The Japan Fund, NAM USA has contractually agreed to waive its investment advisory fee and, if necessary, to reimburse other operating expenses of a Fund to the extent necessary to limit total annual operating expenses (excluding distribution and service (12b-1) fees, interest expense, dividend expenses resulting from short sales of securities and certain other expenses), on an annualized basis, to 1.60% for The Japan Fund; to 1.50% for Asia Pacific ex Japan Fund; 1.25% for Global Equity Income Fund; 1.60% for Global Emerging Markets Fund; and 0.85% for High Yield Fund, in each case as a percentage of average daily net assets allocated to each such class of shares of such Fund, until January 28, 2014 (January 28, 2015 for High Yield Fund) (“Expense Cap Agreements”).

During the year ended September 30, 2013, the Funds’ Administrator and Custodian have contractually agreed to waive a portion of their fees.

For the year ended September 30, 2013, fees waived and reimbursed were as follows:



Fund	NAM USA Waived and Reimbursed		Other Waived		Total Fees Waived and Reimbursed
The Japan Fund	$	243,519	$	938	$	244,457
Asia Pacific ex Japan Fund		438,032		11,500		449,532
Global Equity Income Fund		370,807		11,500		382,307
Global Emerging Markets Fund		463,653		11,500		475,153
High Yield Fund		573,416		—		573,416

Under the terms of the Expense Cap Agreements if, within three years following a waiver or reimbursement, the operating expenses of a share class of a Fund that previously received a waiver or reimbursement from NAM USA are less than the expense limit for such share class, the applicable share class is required to repay NAM USA up to the amount of fees waived or expenses reimbursed under the agreement if NAM USA or an affiliate serves as a Fund’s investment advisor at such time. For the three years through September 30, 2013, NAM USA waived and/or reimbursed fees under the Expense Cap Agreements as follows:



	Expires September 30,						Total Amount Eligible for
Funds	2014		2015		2016		Recoupment
The Japan Fund	$	—	$	131,246	$	243,519	$	374,765
Asia Pacific ex Japan Fund		361,616		366,461		438,032		1,166,109


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September 30, 2013



	Expires September 30,						Total Amount Eligible for
Funds	2014		2015		2016		Recoupment
Global Equity Income Fund	$	363,552	$	375,256	$	370,807	$	1,109,615
Global Emerging Markets Fund		331,056		370,592		463,653		1,165,301
High Yield Fund		—		—		573,416		573,416

F. Federal Income Tax Information

During the years or period ended September 30, 2013 and September 30, 2012, the tax character of distributions made by the Funds were as follows:


	Year Ended September 30, 2013						Year Ended September 30, 2012
Funds	Ordinary Income		Long-Term Capital Gains		Total		Ordinary Income		Long-Term Capital Gains		Total
The Japan Fund	$	1,724,510	$	—	$	1,724,510	$	1,313,579	$	—	$	1,313,579
Asia Pacific ex Japan Fund		55,868		—		55,868		53,587		—		53,587
Global Equity Income Fund		234,988		41,476		276,464		242,343		312,419		554,762
Global Emerging Markets Fund		113,747		—		113,747		273,347		1,018,906		1,292,253
High Yield Fund		2,188,131		—		2,188,131		—		—		—

The components of distributable earnings for the Funds as of September 30, 2013 are listed below:



Funds	Undistributed Ordinary Income		Undistributed Long-Term Gain		Unrealized Appreciation (Depreciation)*			Capital Loss Carryover			Post October Capital Loss Deferral			Other			Total
The Japan Fund	$	1,984,217	$	—	$	45,173,716		$	(56,061,635	)	$	—		$	—		$	(8,903,702	)
Asia Pacific ex Japan Fund		—		73,985		991,352			—			—			—			1,065,337
Global Equity Income Fund		99,988		395,157		1,624,325			—			—			—			2,119,470
Global Emerging Markets Fund		101,876		—		2,297,592			(920,660	)		(748,324	)		—			730,484
High Yield Fund		877,289		—		(119,221	)		—			—			(124,094	)		633,974

*	Includes unrealized appreciation (depreciation) on currency.

Shareholders are encouraged to consult with their tax advisors concerning the tax treatment of dividends and distributions from all the Funds.

The timing and characterization of certain income and capital gain distributions are determined annually in accordance with the Federal tax regulations, which may differ from GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. Accordingly, the Funds may periodically make reclassifications among certain of their capital accounts without impacting their net asset values.


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Nomura Partners Funds, Inc.

September 30, 2013

As of September 30, 2013, the Funds recorded the following reclassifications primarily due to foreign exchange gains/losses, passive foreign investment company gains and treatment of offering costs, to increase (decrease) the accounts listed below:



Fund	Accumulated Net Investment Income/(Loss)			Accumulated Net Realized Gain/(Loss)			Paid-in Capital
The Japan Fund	$	(31,019	)	$	31,019		$	—
Asia Pacific ex Japan Fund		981			15,052			(16,033	)
Global Equity Income Fund		11,057			(11,057	)		—
Global Emerging Markets Fund		1,737			(1,737	)		—
High Yield Fund		120,023			(9,284	)		(110,739	)

These reclassifications had no impact on net assets or NAV per share.

The following summarizes the capital loss carryforwards as of September 30, 2013 for the Funds. These capital loss carryforwards are available to offset future gains.



					Non-expiring Loss
Funds	2017		2018		Short-Term		Long-Term		Total
The Japan Fund	$	1,158,053	$	53,011,487	$	1,892,095	$	—	$	56,061,635
Global Emerging Markets Fund		—		—		382,100		538,560		920,660

Cost of investments for Federal income tax purposes is substantially the same as for financial reporting purposes and net unrealized appreciation (depreciation) on investments at September 30, 2013 consisted of:



Funds	Gross Unrealized Appreciation		Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)*			Tax Cost
The Japan Fund	$	46,371,268	$	(974,063	)	$	45,397,205		$	138,932,744
Asia Pacific ex Japan Fund		1,275,022		(283,753	)		991,269			6,830,338
Global Equity Income Fund		1,658,822		(34,101	)		1,624,721			6,150,075
Global Emerging Markets Fund		2,858,063		(558,939	)		2,299,124			15,119,762
High Yield Fund		760,962		(880,754	)		(119,792	)		54,600,713

*	Does not include unrealized appreciation/depreciation on currency.

G. Principal Risks of Investing in the Funds

Investment Risks. The Funds’ investments in foreign companies involve certain risks not typically associated with investments in securities of U.S. companies or the U.S. Government, including risks relating to (i) social, economic and political stability; (ii) price volatility, lesser liquidity and smaller market capitalization of securities markets in which securities of foreign companies trade; (iii) currency exchange fluctuations, currency blockage and higher levels of inflation; (iv) controls on foreign investment and limitations on repatriation of invested capital and on the Funds’ ability to exchange local currencies for U.S. Dollars; (v) governmental involvement in and control over the economy; (vi) risk of nationalization or expropriation of assets; (vii) the nature of the smaller, less seasoned and newly organized foreign companies; and (viii) the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure requirements and less government supervision and regulation.


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September 30, 2013

Concentration of Market Risk. Investing in foreign countries poses additional risks since political and economic events unique to a country or region will affect those markets and their issuers. These events will not necessarily affect the U.S. economy or similar issuers located in the U.S. In addition, investments in foreign countries are denominated in foreign currencies. As a result, changes in the value of the foreign currencies compared to the U.S. Dollar may affect (positively or negatively) the value of the Funds’ investments. These currency movements may happen separately from, and in response to, events that do not otherwise affect the value of the security in the issuer’s home country.

Emerging Markets Risk. The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, political and economic structures in these countries may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative.

High Yield Bonds Risk. The High Yield Fund’s investment in high yield bonds (also known as junk bonds) will subject the High Yield Fund to greater levels of credit and liquidity risks than funds that invest in higher rated securities. While offering greater opportunity for higher yields and capital growth, high yield bonds usually are subject to greater price volatility and may be less liquid than higher rated securities. An economic downturn or period of rising interest rates may adversely affect the market for these securities (see “Inflation Risk” below) and reduce the High Yield Fund’s ability to sell these securities (see “Liquidity Risk” below). These securities are considered to be high-risk investments, are speculative with respect to the capacity to pay interest and repay principal (see “Credit/ Default Risk” below) and may be issued by companies that are highly leveraged, less creditworthy or financially distressed (see “Distressed Securities Risk” below). These securities are subject to greater risk of loss, greater sensitivity to interest rate and economic changes, valuation difficulties, and a potential lack of a secondary or public market for the securities. The market price of these securities can change suddenly and unexpectedly. You should not invest in the High Yield Fund unless you are willing to assume the greater risk associated with high yield bonds.

Bank Loan Risk. These investments expose a Fund to the credit risk of both the financial institution and the underlying borrower. The market for loans may not be highly liquid and a Fund may have difficulty selling them. Typically a Fund will acquire loans through assignments. In assignments, a Fund has no recourse against the selling institution, and the selling institution generally makes no representations about the underlying loan, the borrowers, the documentation or the collateral. In assignments, the rights against the borrower that are acquired by a Fund may be more limited than those held by the assigning lender. The Fund’s bank loan investments will usually be senior loans. Senior Loans are loans that have a right to payment senior to most other debts of the borrower. Senior Loans generally are arranged through private negotiations between a borrower and several financial institutions (the “Lenders”) represented in each case by one or more such Lenders acting as agent (the “Agent”) of the several Lenders. On behalf of the Lenders, the Agent is primarily responsible for negotiating the loan agreement (“Loan Agreement”) that establishes the relative terms and conditions of the Senior Loan and rights of the borrower and the Lenders.

Inflation (Interest Rate) Risk. Generally, high yield bonds will decrease in value when interest rates rise and increase in value when interest rates decline. Interest rate risk is the risk that the high yield bonds will decline in value because of increases in interest rates. Interest rate changes normally have a greater effect on the prices of longer-term high yield bonds than shorter-term high yield bonds. In addition, during periods of declining interest rates, the issuers of high yield bonds held by the High Yield Fund may prepay principal earlier than scheduled, forcing the High Yield Fund to reinvest in lower yielding debt securities. This is known as “Prepayment Risk” and may reduce the High Yield Fund’s income. Variable and floating rate securities are less sensitive to market interest rate changes, but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities generally will not increase in value if interest rates decline. A decrease in market interest rates may adversely affect the income the High Yield Fund receives from such securities and the net asset value of the High Yield Fund’s shares.


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Nomura Partners Funds, Inc.

September 30, 2013

Liquidity Risk. Certain securities that are thinly traded or that otherwise might not be easily disposed in the course of regular trading may be deemed to be illiquid securities. Illiquid securities may trade at a discount from comparable, more liquid investments, and may be subject to wider fluctuations in market value. Also, the Funds may not be able to dispose of illiquid securities when that would be beneficial at a favorable time or price. The Funds may invest up to 15% of their net assets in illiquid securities.

Credit/Default Risk. Credit risk refers to the possibility that the issuer of a security will not be able to make payments of interest and principal when due. If an issuer fails to pay interest or repay principal, the High Yield Fund’s income or share value may be reduced. Changes in an issuer’s credit rating or the market’s perception of an issuer’s creditworthiness may also affect the value of the High Yield Fund’s investment in that issuer.

Distressed Securities Risk. Investing in distressed securities is speculative and involves significant risks. Distressed securities may be the subject of bankruptcy proceedings or in default as to the repayment of principal and/or interest or rated in the lower rating categories (Ca or lower by Moody’s and CC or lower by S&P or Fitch). Distressed securities frequently do not produce income and may require the High Yield Fund to bear certain extraordinary expenses in order to protect and recover its investment.

Please refer to the prospectus for a complete description of risks associated with the Funds.

H. Capital Transactions

The following tables summarize share and dollar activity in the Funds by class as of the years or period ended September 30, 2013 and September 30, 2012:


	The Japan Fund
	Year Ended September 30, 2013						Year Ended September 30, 2012
	Shares			Dollars ($)			Shares			Dollars ($)
Shares Sold
Class A		942,254			10,927,662			243,040			2,280,384
Class C		928,404			10,468,557			20,835			197,180
Class I		724,339			8,155,682			1,351,139			12,804,990
Class S		69,222			735,814			84,237			809,413
Shares reinvested
Class A		1,499			14,604			2,517			22,956
Class C		49			467			24			220
Class I		5,737			55,479			49,763			452,844
Class S		142,662			1,395,231			74,759			686,289
Shares redeemed
Class A		(539,742	)		(5,544,013	)		(441,833	)		(4,186,482	)
Class C		(52,594	)		(600,069	)		(35,921	)		(337,851	)
Class I		(831,398	)		(8,722,666	)		(8,878,614	)		(82,848,674	)
Class S		(1,987,742	)		(20,669,550	)		(1,625,527	)		(15,554,044	)
Redemption fees
Class A		—			244			—			793
Class C		—			321			—			14
Class I		—			289			—			673
Class S		—			5,981			—			2,540

Net increase (decrease) from Capital Transactions		(597,310	)		(3,775,967	)		(9,155,581	)		(85,668,755	)


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September 30, 2013


	Asia Pacific ex Japan Fund
	Year Ended September 30, 2013						Year Ended September 30, 2012
	Shares			Dollars ($)			Shares			Dollars ($)
Shares Sold
Class A		89,546			1,364,051			161,128			2,222,005
Class C		26,691			401,994			79,039			1,077,007
Class I		155,339			2,400,892			167,505			2,389,356
Shares reinvested
Class A		1,005			15,219			368			4,866
Class C		—			—			—			—
Class I		922			14,576			3,075			40,802
Shares redeemed
Class A		(95,360	)		(1,429,802	)		(177,223	)		(2,398,271	)
Class C		(50,960	)		(757,514	)		(69,747	)		(966,673	)
Class I		(178,126	)		(2,687,607	)		(631,321	)		(8,784,129	)
Redemption fees
Class A		—			46			—			51
Class C		—			20			—			5
Class I		—			40			—			28

Net increase (decrease) from Capital Transactions		(50,943	)		(678,085	)		(467,176	)		(6,414,953	)


	Global Equity Income Fund
	Year Ended September 30, 2013						Year Ended September 30, 2012
	Shares			Dollars ($)			Shares			Dollars ($)
Shares Sold
Class A		28,318			377,031			26,700			319,673
Class C		45,754			619,126			7,855			96,587
Class I		38,297			513,857			8,052			98,890
Shares reinvested
Class A		362			4,758			316			3,721
Class C		189			2,513			261			3,088
Class I		15,072			196,033			44,565			523,024
Shares redeemed
Class A		(11,714	)		(155,060	)		(28,737	)		(342,522	)
Class C		(1,166	)		(15,746	)		(5,020	)		(61,515	)
Class I		(199,313	)		(2,654,903	)		—			—
Redemption fees
Class A		—			53			—			217
Class C		—			57			—			—
Class I		—			743			—			—

Net increase (decrease) from Capital Transactions		(84,201	)		(1,111,538	)		53,992			641,163


Nomura Partners Funds		The World from Asia			:				79

Nomura Partners Funds, Inc.

September 30, 2013


	Global Emerging Markets Fund
	Year Ended September 30, 2013						Year Ended September 30, 2012
	Shares			Dollars ($)			Shares			Dollars ($)
Shares Sold
Class A		294,310			4,023,478			115,859			1,512,748
Class C		72,364			982,601			38,411			509,780
Class I		557,083			7,640,323			428,961			5,783,610
Shares reinvested
Class A		1,065			14,966			4,014			47,483
Class C		78			1,073			901			10,456
Class I		3,914			56,012			93,161			1,109,551
Shares redeemed
Class A		(80,079	)		(1,031,762	)		(16,259	)		(216,278	)
Class C		(8,759	)		(107,081	)		(10,255	)		(126,676	)
Class I		(322,761	)		(4,471,826	)		(552,337	)		(7,189,035	)
Redemption fees
Class A		—			198			—			97
Class C		—			55			—			5
Class I		—			836			—			145

Net increase (decrease) from Capital Transactions		517,215			7,108,873			102,456			1,441,886


	High Yield Fund Period Ended September 30, 2013*
	Shares			Dollars ($)
Shares Sold
Class A		510,062			5,199,570
Class C		169,684			1,713,999
Class I		4,500,589			45,562,810
Shares reinvested
Class A		12,683			129,795
Class C		4,720			48,264
Class I		193,833			1,984,451
Shares redeemed
Class A		(7,435	)		(76,569	)
Class C		(1,698	)		(17,471	)
Class I		(7	)		(76	)
Redemption fees
Class A		—			—
Class C		—			—
Class I		—			6

Net increase (decrease) from Capital Transactions		5,382,431			54,544,779

^(a)	Fund commenced operations on December 27, 2012.


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September 30, 2013

I. Committed Line of Credit

The Japan Fund has entered into a $5 million revolving credit facility (“Line of Credit”) with State Street. The Line of Credit may be utilized to meet shareholder redemptions or for other lawful purposes under the 1940 Act. The Japan Fund has agreed to pay an annual commitment fee of 0.15%. Borrowings under the Line of Credit are charged interest at the higher of the Federal Funds Rate plus 1.25% or the LIBOR rate plus 1.25%. During the year ended September 30, 2013, there were no borrowings under this Line of Credit.

J. Commitments and Contingencies

In the normal course of business, the Funds enter into contracts that provide general indemnifications by the Funds to the counterparties to the contract. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.

K. Subsequent Event

Effective October 15, 2013, all of the Funds were closed to purchases and exchanges. Nomura has advised the Board that it is planning to exit the U.S.A. retail mutual fund business. Consequently, the Board has decided to close the Funds to purchases and exchanges while it considers the best course of action for each of the Funds. The Board will consider the best interests of the investors in each of the Funds and may decide to liquidate, merge, assign the advisory contract or to take another course of action for one or more of the Funds. Nomura has advised the Board that it will continue to manage the Funds during the transition and will take reasonable steps, in consultation with the Board, to ensure that investors are not adversely affected during the transition.

The High Yield Fund declared the following dividends from net investment income subsequent to September 30, 2013:


Class	Declaration Date	Amount per Share	Record Date	Payable Date
Class A	10/31/13 11/26/13	0.05624 0.05448	10/30/13 11/25/13	11/01/13 11/27/13
Class C	10/31/13 11/26/13	0.05086 0.04878	10/30/13 11/25/13	11/01/13 11/27/13
Class I	10/31/13 11/26/13	0.05899 0.05652	10/30/13 11/25/13	11/01/13 11/27/13


Nomura Partners Funds		The World from Asia			:				81

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Nomura Partners Funds, Inc.

and the Shareholders of The Japan Fund, Asia Pacific ex Japan Fund,

Global Equity Income Fund, Global Emerging Markets Fund and High Yield Fund

We have audited the accompanying statements of assets and liabilities of The Japan Fund, Asia Pacific ex Japan Fund, Global Equity Income Fund, Global Emerging Markets Fund and High Yield Fund, each a series of shares of Nomura Partners Funds, Inc. (the “Company”), including the schedules of investments, as of September 30, 2013, and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the years or period in the two-year period then ended and the financial highlights for each of the years or periods presented. These financial statements and financial highlights are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of September 30, 2013 by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of The Japan Fund, Asia Pacific ex Japan Fund, Global Equity Income Fund, Global Emerging Markets Fund and High Yield Fund as of September 30, 2013, the results of their operations for the year or period then ended, and the changes in their net assets for each of the years or period in the two-year period then ended and their financial highlights for each of the years or periods presented, in conformity with accounting principles generally accepted in the United States of America.

LOGO

BBD, LLP

Philadelphia, Pennsylvania

November 26, 2013


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Other Information (Unaudited)

Federal Tax Information

The below Funds have made an election under Internal Revenue Code Section 853 to pass through foreign taxes paid by the Funds to their shareholders. For the year ended September 30, 2013, the total amount of foreign taxes paid that will be passed through to shareholders and foreign source income for information reporting purposes can be found below.



Funds	Foreign Tax Credit		Foreign Source Income		Shares Outstanding		Per Share Foreign Taxes Paid		Per Share Income from Foreign Source
The Japan Fund	$	224,349	$	3,168,959		15,581,237	$	0.01	$	0.20
Asia Pacific ex Japan Fund		—		187,784		545,507		—		0.34
Global Equity Income Fund		9,787		160,816		565,097		0.02		0.28
Global Emerging Markets Fund		36,606		336,477		1,315,481		0.03		0.26

The Funds paid distributions from ordinary income during the year that qualify for the corporate dividend received deduction. The percentage that qualifies is listed below:



Funds	DRD %
Asia Pacific ex Japan Fund		0.04
Global Equity Income Fund		46.12
Global Emerging Markets Fund		11.64
High Yield Fund		0.37

For the fiscal year ended September 30, 2013 certain dividends paid by the Funds may be designated as qualified income subject to a maximum rate of 15% as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Funds qualified dividend income can be found below.



Funds	Qualified Dividend Income
The Japan Fund	$	3,045,638
Asia Pacific ex Japan Fund		89,194
Global Equity Income Fund		259,955
Global Emerging Markets Fund		159,750
High Yield Fund		11,422

Proxy Voting Information

The Board has delegated the responsibility for decisions regarding proxy voting for securities held by the Funds to NAM USA, who in turn has delegated the responsibility to the sub-advisors. Each sub-advisor will vote such proxies in accordance with its policies and procedures. Descriptions of the guidelines that the Funds’ sub-advisors use to vote proxies relating to portfolio securities, as well as information on Form N-PX regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, are available, without charge and upon request: (i) by visiting our website at www.nomurapartnersfunds.com; (ii) by calling toll free (800) 535-2726; and (iii) on the SEC’s website at http://www.sec.gov.


Nomura Partners Funds		The World from Asia			:				83

Other Information (Unaudited) (concluded)

Quarterly Portfolio of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds’ Forms N-Q are available by visiting our website at www.nomurapartnersfunds.com or on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330 or 1-202-551-8090.

Delivery of Shareholder Documents

The Corporation delivers only one copy of shareholder documents, including prospectuses, shareholder reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is known as “householding” and is intended to eliminate duplicate mailings and reduce expenses. Mailing of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Funds at (800) 535-2726, or write to Nomura Partners Funds, Inc., P.O. Box 55760, Boston, MA 02205-8005.


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Shareholder Expense Example (Unaudited)

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemption fees, as applicable; and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, as applicable, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The following example is based on $1,000 invested at the beginning of the period and held for the entire period from April 1, 2013 through September 30, 2013.

Actual expenses — Each “Actual Fund Return” row in the following table provides information about actual account values and actual expenses. You may use the information in these lines, 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 under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical example for comparison purposes — Each “Hypothetical Return” row in the following table provides information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not a 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 cost of investing in a 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.

Please note that expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees, as applicable. Therefore, each “Hypothetical Return” row in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


The Japan Fund	Beginning Account Value 4/1/13		Ending Account Value 9/30/13		Expenses Paid During Period^*		Annualized Expense Ratios^*
Class A
Actual Fund Return	$	1,000.00	$	1,113.14	$	9.80		1.85	%
Hypothetical Return (5% return before expenses)		1,000.00		1,015.79		9.35		1.85	%
Class C
Actual Fund Return	$	1,000.00	$	1,108.94	$	13.75		2.60	%
Hypothetical Return (5% return before expenses)		1,000.00		1,012.03		13.11		2.60	%
Class I
Actual Fund Return	$	1,000.00	$	1,113.87	$	8.48		1.60	%
Hypothetical Return (5% return before expenses)		1,000.00		1,017.05		8.09		1.60	%
Class S
Actual Fund Return	$	1,000.00	$	1,114.44	$	8.59		1.62	%
Hypothetical Return (5% return before expenses)		1,000.00		1,016.95		8.19		1.62	%

^*	Expenses are equal to a Fund’s annualized expense ratio as indicated above, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.


Nomura Partners Funds		The World from Asia			:				85

Shareholder Expense Example (Unaudited) (continued)


Asia Pacific ex Japan Fund	Beginning Account Value 4/1/13		Ending Account Value 9/30/13		Expenses Paid During Period^*		Annualized Expense Ratios^*
Class A
Actual Fund Return	$	1,000.00	$	930.73	$	8.47		1.75	%
Hypothetical Return (5% return before expenses)		1,000.00		1,016.30		8.85		1.75	%
Class C
Actual Fund Return	$	1,000.00	$	926.89	$	12.08		2.50	%
Hypothetical Return (5% return before expenses)		1,000.00		1,012.53		12.61		2.50	%
Class I
Actual Fund Return	$	1,000.00	$	931.76	$	7.26		1.50	%
Hypothetical Return (5% return before expenses)		1,000.00		1,017.55		7.59		1.50	%

Global Equity Income Fund
Class A
Actual Fund Return	$	1,000.00	$	1,045.88	$	7.69		1.50	%
Hypothetical Return (5% return before expenses)		1,000.00		1,017.55		7.59		1.50	%
Class C
Actual Fund Return	$	1,000.00	$	1,041.67	$	11.52		2.25	%
Hypothetical Return (5% return before expenses)		1,000.00		1,013.79		11.36		2.25	%
Class I
Actual Fund Return	$	1,000.00	$	1,047.90	$	6.42		1.25	%
Hypothetical Return (5% return before expenses)		1,000.00		1,018.80		6.33		1.25	%

Global Emerging Markets Fund
Class A
Actual Fund Return	$	1,000.00	$	965.57	$	9.12		1.85	%
Hypothetical Return (5% return before expenses)		1,000.00		1,015.79		9.35		1.85	%
Class C
Actual Fund Return	$	1,000.00	$	961.77	$	12.79		2.60	%
Hypothetical Return (5% return before expenses)		1,000.00		1,012.03		13.11		2.60	%
Class I
Actual Fund Return	$	1,000.00	$	966.59	$	7.89		1.60	%
Hypothetical Return (5% return before expenses)		1,000.00		1,017.05		8.09		1.60	%

^*	Expenses are equal to a Fund’s annualized expense ratio as indicated above, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.


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Shareholder Expense Example (Unaudited) (concluded)


High Yield Fund	Beginning Account Value 4/1/13		Ending Account Value 9/30/13		Expenses Paid During Period^*		Annualized Expense Ratios^*
Class A
Actual Fund Return	$	1,000.00	$	1,029.38	$	5.60		1.10	%
Hypothetical Return (5% return before expenses)		1,000.00		1,019.55		5.57		1.10	%
Class C
Actual Fund Return	$	1,000.00	$	1,025.59	$	9.39		1.85	%
Hypothetical Return (5% return before expenses)		1,000.00		1,015.79		9.35		1.85	%
Class I
Actual Fund Return	$	1,000.00	$	1,029.58	$	4.32		0.85	%
Hypothetical Return (5% return before expenses)		1,000.00		1,020.81		4.31		0.85	%

^*	Expenses are equal to a Fund’s annualized expense ratio as indicated above, multiplied by the average account value over the period, multiplied by 183/365 to reflect the one-half year period.


Nomura Partners Funds		The World from Asia			:				87

Directors and Officers (Unaudited)

The following table presents information about each Director of the Corporation. Unless otherwise noted, the address of each Director is c/o State Street Bank and Trust Company, 4 Copley Place, 5^th Floor, CPH-0326, Boston, MA 02116. The term of office for each Director is until the next meeting of stockholders called for the purpose of electing Directors and until the election and qualification of a successor, or until such Director sooner dies, resigns or is removed as provided in the governing documents of the Corporation. Because the Corporation does not hold an annual meeting of stockholders, each Director will hold office for an indeterminate period until retirement. The following chart lists Directors as of September 30, 2013.


Non-Interested Directors:
Name, Age and Position(s) Held with the Funds	Length of Time Served	Principal Occupation(s) During Past 5 Years	No. of Portfolios in Fund Complex Overseen

J. Douglas Azar (67)
Director and Chairman of the Board	Director 2005 to present; Vice Chairman 2008 to January 2010 and Chairman of the Board January 2010 to present	Retired, October 2000 to present; CEO of US Retail Financial Services Operations, ING (Amsterdam, Holland), April 2000 to October 2000; prior to his tenure at ING, Mr. Azar was employed in various capacities at American International Group from 1993 through 2000, the last of which was Regional Vice President of AIG Life Insurance Operations (Tokyo, Japan), from 1996 to April 2000; Executive VP of US and Canadian Insurance Operations, North American Life Assurance Co. (Toronto, Canada), 1991 to 1993; from 1970 through 1991, Mr. Azar was employed by Aetna Life and Casualty Company serving in numerous positions, the last one of which was Vice President of Life Insurance Marketing (Hartford, CT).	5

Lynn S. Birdsong (68)
Director and Chairman of the Investment Oversight Committee	2003 to present	Private Investor; Director, The Hartford Funds, May 2003 to present; Trustee, The Natural History Museum of the Adirondacks, December 2006 to present; Director, Berkshire Farm for Youth (social services), June 2003 to present; Trustee, The First Church of Christ, Scientist, Boston Pension Trust and Gift and Endowment Trust, June 2006 to present; Partner, George Birdsong Co. (advertising), January 1981 to present; Director, The Daycroft School Foundation, 2005 to October 2007; Managing Director, Zurich Scudder Investments (asset management), January 1979 to April 2002.	5


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Directors and Officers (Unaudited) (continued)


Non-Interested Directors: (continued)
Name, Age and Position(s) Held with the Funds	Length of Time Served	Principal Occupation(s) During Past 5 Years	No. of Portfolios in Fund Complex Overseen

Gregory A. Boyko (62)
Director	2011 to present	Senior Advisor, Evolution Benefits (medical savings accounts) 2009-2011; Senior Vice President and Head of Business Solutions Group, Hartford Financial Services, 2008-2009; Chairman, President and CEO, Hartford Life Insurance KK — Tokyo, Japan, 2006-2007; Chairman and CEO, Hartford Life International, LTD (insurance), 1998-2006.	5

James A. Firestone (58)
Director and Chairman of the Audit Committee	2005 to present	President, Corporate Operations and Executive Vice President, Xerox Corporation (printing and imaging), August 2008 to present; President, Xerox North America and Senior Vice President, Xerox Corporation, October 2004 to August 2008; President Corporate Operations and Senior Vice President, Xerox Corporation, 2002 to 2004; Director, Fuji Xerox Corp, Ltd., October 2002 to 2004 and January 2009 to present.	5


Nomura Partners Funds		The World from Asia			:				89

Directors and Officers (Unaudited) (concluded)

The following table presents information about each Officer of the Corporation. Unless otherwise noted, (i) each Officer has engaged in the principal occupation(s) noted in the table for at least the most recent five years, although not necessarily in the same capacity, and (ii) the address of each Officer is c/o State Street Bank and Trust Company, 4 Copley Place, 5^th Floor, CPH-0326, Boston, MA 02116. The President, Treasurer and Secretary each holds office until his or her successor is duly elected and qualified; all other Officers hold offices in accordance with the By-Laws of the Corporation. The following chart lists Officers as of September 30, 2013.


Officers:
Name, Age and Position(s) Held with the Funds	Length of Time Served	Principal Occupation(s) During Past 5 Years

Richard J. Berthy (55)
Principal Executive Officer and President*⁺	April 2010 to present, September 2009 to April 2010 Principal Financial Officer and Treasurer	President and Managing Partner, Foreside Financial Group, LLC May 2008 to present; Chief Administrative Officer, Foreside Financial Group, LLC, January 2005 to May 2008; President and Secretary, Bainbridge Capital Management, June 2003 to June 2006.

Richard F. Cook, Jr. (62)
Chief Compliance Officer Anti-Money Laundering Compliance Officer*⁺	April 2007 to present August 2013 to present	Director of Foreside Compliance Services LLC, January 2006 to present.

Marjorie Caldwell (43)
Assistant Treasurer^#	November 2012 to present	Assistant Vice President State Street Bank and Trust Company.

William C. Cox (47)
Principal Financial Officer and Treasurer*⁺	May 2013 to present	Fund Principal Financial Officer, Foreside Financial Group, LLC, 2013 to present; Vice President, State Street Corporation, 1997 to 2012.

Jesse Hallee (37)
Secretary^#**	May 2013 to present	Vice President and Senior Counsel, State Street Bank and Trust Company, March 2013 to present; Vice President and Counsel, Brown Brothers Harriman & Co., March 2007 to February 2013.

Bernard Brick (39)
Assistant Secretary^#	August 2013 to present	Assistant Vice President and Paralegal Manager, State Street Bank and Trust Company, 2012-present; Student, Northeastern University School of Law, 2008-2011.

The Corporation’s President, Treasurer, Chief Compliance Officer, and Anti-Money Laundering Compliance Officer each also serves as an officer to other unaffiliated mutual funds or closed-end funds for which Foreside Fund Services, LLC, or its affiliates act as distributor or provider of other services.

⁺

The address for Richard J. Berthy, Richard F. Cook and William C. Cox is Foreside Financial Group, LLC, Three Canal Plaza, Suite 100, Portland, ME 04101.

The address for Marjorie Caldwell, Jesse Hallee and Bernard Brick is State Street Bank and Trust Company, 4 Copley Place, 5^th Floor, CPH-0376, Boston, MA 02116.

^**

The Corporation’s Secretary also serves as an officer to other unaffiliated mutual funds or closed-end funds for which State Street Bank and Trust Company or its affiliates act as a provider of services.


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LOGO

This report is submitted for the general information of the shareholders of the Funds. It is not authorized for distribution to prospective investors unless preceded or accompanied by an effective prospectus, which includes information regarding the Funds’ risks, objectives, fees and expenses, experience of its management, and other information.

LOGO

Nomura Partners Funds:

Asian and global funds from leading Asian and global managers

Nomura Partners Funds offers a unique selection of mutual funds investing in Asian and global markets. Managed by Nomura Asset Management and premier managers in Europe and the United States, we provide a global perspective on today’s global markets. Our flagship fund, The Japan Fund, has been investing in Japanese equities since 1962 and is the oldest Japanese equity mutual fund in the United States. Nomura Asset Management is one of Asia’s leading investors with approximately $286.5 billion in assets under management as of September 30, 2013.


Nomura Partners Funds, Inc. c/o State Street Bank and Trust Company 4 Copley Place, 5th Floor CPH-0326 Boston, MA 02116		Distributor: Foreside Fund Services, LLC Three Canal Plaza, Suite 100 Portland, ME 04101 www.foreside.com


Investment Advisor: Nomura Asset Management U.S.A. Inc. Two World Financial Center Building B, 18th Floor New York, NY 10281		Chairman and Board of Directors: Nomura Partners Funds, Inc. 4 Copley Place, 5th Floor CPH-0326 Boston, MA 02116


To Obtain More Information: Call 1-800-535-2726 or visit us online at www.nomurapartnersfunds.com This material must be preceded or accompanied by a current prospectus.

Printed on recycled paper.

Nomura Asset Management U.S.A. Inc.

2 World Financial Center, Building B, 18th Floor New York, New York 10281-1712

www.nomurapartnersfunds.com

NOM-AR-001-0913

Item 2.

Code of Ethics.

The registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, comptroller or principal accounting officer, and any person who performs a similar function. A copy of the code of ethics is filed as an exhibit to this Form N-CSR. During the period covered by this report, there have been no amendments to, nor any waivers granted from, a provision that relates to any element of the code of ethics.

Item 3.

Audit Committee Financial Expert.


(a)(1)		The registrant’s board of directors has determined that the registrant has at least one audit committee financial expert serving on the audit committee.

(a)(2)		The audit committee financial expert is Gregory A. Boyko and he is independent as defined in Item 3(a)(2) of Form N-CSR.

Item 4.

Principal Accountant Fees and Services.

(a)

Audit Fees. The aggregate Audit Fees of the registrant’s principal accountant for professional services rendered for the audits of the registrant’s annual financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for the fiscal years ended September 30, 2013 and September 30, 2012, respectively, were $83,000 and $118,500.

(b)

Audit-Related Fees. The aggregate Audit-Related Fees of the registrant’s principal accountant for assurance and related services that are reasonably related to the performance of the audit or review of the registrant’s financial statements and are not reported as Audit Fees, which included the review of financial information contained within registration statement filings conducted on behalf of the registrant, as cited within paragraph (e)(2) of this Item, for the fiscal years ended September 30, 2013 and September 30, 2012, respectively, were and $0 and $0.

(c)

Tax Fees. The aggregate Tax Fees of the registrant’s principal accountant for professional services rendered for tax compliance, tax advice and tax planning services, which included the review of Federal and state income tax returns and the review of federal excise tax returns, for the fiscal years ended September 30, 2013 and September 30, 2012, respectively, were $20,000 and $20,000.

Fees included in the Tax Fees category comprise all services performed by professional staff in the independent accountant’s tax division except those services related to the audit.

(d)

All Other Fees. The aggregate Other Fees of the registrant’s principal accountant for all other non-audit services rendered to the registrant, which included an annual review of the registrant’s anti-money laundering program, for the fiscal years ended September 30, 2013 and September 30, 2012, respectively, were $9,000 and $9,000.

(e)(1)

The audit committee of the registrant’s board of directors, pursuant to its audit committee charter (the “Charter”) and in accordance with paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X, selected the principal accountant and approved, except as stated in paragraph (e)(2) below, all of the audit and non-audit services that were provided and the fees that were paid in each of 2013 and 2012 before the principal accountant was engaged to provide such services. Pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, the registrant’s audit committee also, if applicable, pre-approves its accountant’s engagements for non-audit services with the registrant’s investment adviser or its adviser affiliates that provide ongoing services to the registrant, if the engagement relates to the operations and financial reporting of the registrant. To date, the audit committee has not adopted any pre-approval policies and procedures (as described in paragraph (c)(7) of Rule 2-01 of Regulation S-X) regarding the provision of audit or non-audit services to the registrant. The audit committee itself must approve all such services in advance in accordance with its Charter.

(e)(2)

All services described in each of paragraphs (b) through (d) of this Item were pre-approved by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(A) of Rule 2-01 of Regulation S-X before the engagement of the principal accountant.

(f)

The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the full-time, permanent employees of the principal auditor was 0%.

(g)

The aggregate non-audit fees billed to the registrant’s investment adviser or its adviser affiliates for professional services rendered to the registrant’s investment adviser or its adviser affiliates that provide ongoing services to the registrant for each of the last fiscal year of the registrant were as follows:

FY 2013: $0

FY 2012: $0

(h)

The registrant’s audit committee has considered the provision of non-audit services that were rendered by the principal accountant to the registrant’s investment adviser and the adviser’s affiliates, including, if applicable, any that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, to be compatible with maintaining the independence of the accountant, taking into account representations from the principal auditor, in accordance with Independence Standards Board requirements and the meaning of the securities laws administered by the SEC, regarding its independence from the registrant, its investment adviser and the adviser’s affiliates.

Item 5.

Audit Committee of Listed Registrants.

Not applicable.

Item 6.

Investments.

(a)

The registrant’s full schedule of investments is included as part of the annual report to shareholders filed under Item 1 of this Form N-CSR.

(b)

Not applicable.

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8.

Portfolio Managers of Closed-End Investment Management Companies.

Not applicable.

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10.

Submission of Matters to a Vote of Security Holders.

During the reporting period, there have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors.

Item 11.

Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))), are effective as of a date within 90 days of the filing date of this report, based on the evaluation of the registrant’s disclosure controls and procedures, as required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (the “Exchange Act”) (17 CFR 240.13a-15(b) or

240.15d-15(b)).

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12.

Exhibits.

(a)(1) Code of Ethics is filed herewith.

(a)(2) Certifications of the principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act are filed herewith as Exhibit 99CERT.

(a)(3) Not applicable.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 as required by Rule 30a-2(b) under the 1940 Act, Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act and Section 1350 of Chapter 63 of Title 18 of the United States Code are filed herewith as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): NOMURA PARTNERS FUNDS, INC.

By (Signature and Title):

/s/ RICHARD J. BERTHY

Richard J. Berthy

President

and Principal Executive Officer

Date: December 5, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title):

/s/ RICHARD J. BERTHY

Richard J. Berthy

President

and Principal Executive Officer

Date: December 5, 2013

By (Signature and Title):

/s/ WILLIAM C. COX

William C. Cox

Treasurer

and Principal Financial Officer

Date: December 5, 2013