-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DCJXw0sNXyN6UZXYhwhs7UDbGhHdVnVMJSOl08qkTUzgSYnzmmvs7G6Xf0HC9Fzl AyqjIYSufUUq4dxT7Y9fpw== 0001135428-08-000150.txt : 20080410 0001135428-08-000150.hdr.sgml : 20080410 20080410144059 ACCESSION NUMBER: 0001135428-08-000150 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20080131 FILED AS OF DATE: 20080410 DATE AS OF CHANGE: 20080410 EFFECTIVENESS DATE: 20080410 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Advisors Inner Circle Fund II CENTRAL INDEX KEY: 0000890540 IRS NUMBER: 233040006 STATE OF INCORPORATION: MA FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-07102 FILM NUMBER: 08749743 BUSINESS ADDRESS: STREET 1: ONE FREEDOM VALLEY DRIVE CITY: OAKS STATE: PA ZIP: 19456 BUSINESS PHONE: 6106761000 MAIL ADDRESS: STREET 1: ONE FREEDOM VALLEY DRIVE CITY: OAKS STATE: PA ZIP: 19456 FORMER COMPANY: FORMER CONFORMED NAME: ARBOR FUND DATE OF NAME CHANGE: 19920929 0000890540 S000013626 PERIMETER SMALL CAP GROWTH FUND C000036925 INVESTOR SHARES PSCGX N-CSRS 1 perimeter_ncsrs.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------- FORM N-CSRS -------- CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES INVESTMENT COMPANY ACT FILE NUMBER 811-07102 THE ADVISORS' INNER CIRCLE FUND II (Exact name of registrant as specified in charter) -------- c/o CT Corporation 101 Federal Street Boston, MA 02110 --------------------------------------------------- (Address of principal executive offices) (Zip code) SEI Investments One Freedom Valley Drive, Oaks, PA 19456 --------------------------------------- (Name and address of agent for service) REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-877-446-3863 DATE OF FISCAL YEAR END: JULY 31, 2008 DATE OF REPORTING PERIOD: JANUARY 31, 2008 ITEM 1. REPORTS TO STOCKHOLDERS. THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND SEMI-ANNUAL REPORT JANUARY 31, 2008 [LOGO] PERIMETER --CAPITAL MANAGEMENT -- INVESTMENT ADVISER: PERIMETER CAPITAL MANAGEMENT LLC THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ TABLE OF CONTENTS ================================================================================ Shareholders' Letter ........................................................ 1 Schedule of Investments ..................................................... 3 Statement of Assets & Liabilities ........................................... 11 Statement of Operations ..................................................... 12 Statement of Changes in Net Assets .......................................... 13 Financial Highlights ........................................................ 14 Notes to Financial Statements ............................................... 15 Disclosure of Fund Expenses ................................................. 21 ================================================================================ The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q within 60 days after the end of the period. The Fund's Forms N-Q are available on the Commission's website at http://www.sec.gov, and may be reviewed and copied at the Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0300. A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities, as well as information relating to how the Fund voted proxies relating to portfolio securities during the most recent period ended June 30, will be available (i) without charge, upon request, by calling 1-888-968-4964; and (ii) on the Commission's website at http://www.sec.gov. THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ - -------------------------------------------------------------------------------- SHAREHOLDERS' LETTER - -------------------------------------------------------------------------------- January 31, 2008 Dear Shareholders: The Perimeter Small Cap Growth Fund returned -8.03% over the last six months, trailing the -6.20% return of the Russell 2000 Growth Index. During this period, there was a heightened level of market volatility, largely attributable to the continued slowing in economic growth, the emergence of the sub-prime credit crisis, the widening impact of the housing collapse, and fears of recession reaching fervor levels. Additionally, several themes emerged in the markets over the last year, including 1) the shift from the value to growth style; 2) narrowing market breadth; and 3) a bias toward higher market cap, higher liquidity stocks. There were two themes in particular that gained traction as 2007 came to a close to detract from performance. The first of these was the narrowing breadth in the market where fewer stocks advanced, while the majority of companies, regardless of fundamentals, began to decline in price. As the market copes with the headwinds mentioned above, investors flocked to the last bastions of growth, whether real or apparent. Very narrow markets, where strong performance is confined to a small subset of the economy, represents a type of market where our broad-based, diversified portfolio will under perform. The second theme was the market cap bias, where strong performance was confined to the largest and most liquid of the small caps. This latter factor acted as a headwind as the Perimeter Small Cap Growth Fund has remained true to its small cap identity, maintaining a lower market cap profile than that of the benchmark. Both themes weighed on relative performance as Perimeter experienced weak stock selection in 7 of 9 economic sectors over the last 5 months, particularly the Consumer Discretionary, Industrials, and Materials sectors. In addition, our overweight in Technology, the worst performing sector over this time frame, despite strong growth characteristics, hindered the fund's performance. OUTLOOK As mentioned above, several forces have roiled the markets over the last six months, such that only two out of nine economic sectors posted positive returns (Healthcare and Telecommunication Services) during this period. The two worst performing sectors were Technology and Consumer Discretionary. Technology suffered as the markets became more risk adverse due to the tightening credit markets and fears of a recession. Consumer Discretionary was weak due to pressures on the consumer given the housing collapse, sub-prime issues and high energy prices. In Technology, our current overweight may moderate in the months to come, but we expect to remain overweight as this sector pos- 1 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ sesses some of the strongest relative earnings growth trends in the market. The bulk of our overweight in this sector comes from software providers that, on average, possess solid growth trends, high margins, and growing cash flow. Our current underweight in Consumer Discretionary should persist in the near term due to generally weak company fundamentals in the space, but continued Fed easing and peaking credit spreads could potentially set up a good buying opportunity later in the year for solid growth companies, particularly as consumers start to loosen up the purse strings. The Healthcare sector was one of the lone bright spots in the market as the year came to a close. We have been working to increase our weight in Healthcare for most of the year as this sector, similar to Technology, possesses some of the best sustainable growth characteristics in a slowing economic environment. There is no question that economic and corporate profit growth is slowing as evidenced by both the market's performance as well as actual company earnings reports over the last few quarters. It is these types of challenging markets where the Perimeter team remains focused and true to our discipline and process. Ultimately, the market rewards those companies that possess the strongest growth, highest quality earnings, and fundamentals that are sustainable and defensible. The Perimeter team remains diligently focused on identifying and investing in companies with the above characteristics for our investors. THIS REPRESENTS THE MANAGER'S ASSESSMENT OF THE PORTFOLIO AND THE MARKET ENVIRONMENT AT A SPECIFIC POINT IN TIME AND SHOULD NOT BE RELIED UPON BY THE READER AS RESEARCH OR INVESTMENT ADVICE. THE RUSSELL 2000 INDEX IS A WIDELY-RECOGNIZED, CAPITALIZATION-WEIGHTED INDEX THAT MEASURES THE PERFORMANCE OF THE SMALLEST 2,000 COMPANIES IN THE RUSSELL 3000 INDEX. THE RUSSELL GROWTH INDEX MEASURES THE PERFORMANCE OF THOSE RUSSELL 2000 COMPANIES WITH HIGHER PRICE-TO-BOOK RATIOS AND HIGHER FORECASTED GROWTH VALUES. 2 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- SECTOR WEIGHTINGS+: - -------------------------------------------------------------------------------- [BAR GRAPH OMITTED] 28.3% Information Technology 17.7% Health Care 15.3% Industrials 13.9% Consumer Discretionary 7.3% Energy 6.2% Financials 4.8% Consumer Staples 3.4% Materials 2.0% Exchange Traded Fund 0.6% Telecommunication Services 0.5% Cash Equivalent + PERCENTAGES ARE BASED ON TOTAL INVESTMENTS - -------------------------------------------------------------------------------- SCHEDULE OF INVESTMENTS COMMON STOCK -- 83.1%** - -------------------------------------------------------------------------------- SHARES VALUE ------ ---------- CONSUMER DISCRETIONARY -- 11.9% Aeropostale* ......................................... 25,417 $ 715,997 Aftermarket Technology* .............................. 16,785 426,507 Amerigon* ............................................ 24,281 415,691 Asbury Automotive Group .............................. 23,485 333,017 Capella Education* ................................... 5,280 333,062 Charlotte Russe Holding* ............................. 18,921 341,146 Childrens Place Retail Stores* ....................... 18,800 348,552 Cooper Tire & Rubber ................................. 24,260 414,118 CROCS* ............................................... 10,500 365,295 Deckers Outdoor* ..................................... 1,370 166,099 Dover Downs Gaming & Entertainment ................... 25,040 237,880 Drew Industries* ..................................... 16,680 451,861 Fossil* .............................................. 12,360 419,993 Interactive Data ..................................... 18,550 537,022 J Crew Group* ........................................ 13,515 617,906 Jack in the Box* ..................................... 15,540 454,234 Jarden* .............................................. 19,500 488,280 Kimball International, Cl B .......................... 20,620 255,276 Maidenform Brands* ................................... 29,380 364,312 O'Charleys ........................................... 21,200 294,044 PetMed Express* ...................................... 30,100 371,735 Phillips-Van Heusen .................................. 8,230 346,812 Priceline.com* ....................................... 2,994 324,909 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 3 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- COMMON STOCK - CONTINUED - -------------------------------------------------------------------------------- SHARES VALUE -------- ----------- CONSUMER DISCRETIONARY -- CONTINUED Red Robin Gourmet Burgers* ........................ 7,455 $ 260,030 Shutterfly* ....................................... 18,130 352,629 Stage Stores ...................................... 18,120 216,896 Steiner Leisure* .................................. 12,300 457,437 Texas Roadhouse, Cl A* ............................ 31,940 385,516 Warnaco Group* .................................... 13,470 483,438 Wet Seal, Cl A* ................................... 57,850 176,443 Winnebago Industries .............................. 14,991 315,710 ----------- 11,671,847 ----------- CONSUMER STAPLES - 4.1% Andersons ......................................... 10,420 474,631 Central European Distribution* .................... 12,261 644,561 Darling International* ............................ 34,770 403,332 Elizabeth Arden* .................................. 20,100 403,005 Flowers Foods ..................................... 20,885 501,240 Hain Celestial Group* ............................. 17,510 472,770 Ingles Markets, Cl A .............................. 12,748 296,901 Longs Drug Stores ................................. 9,400 432,494 Spartan Stores .................................... 20,600 362,148 ----------- 3,991,082 ----------- ENERGY - 6.2% Alon USA Energy ................................... 14,380 261,716 Bill Barrett* ..................................... 13,150 549,275 Cano Petroleum* ................................... 47,500 278,825 Comstock Resources* ............................... 16,500 523,050 Core Laboratories* ................................ 3,050 343,735 Encore Acquisition* ............................... 11,960 389,896 Gulfmark Offshore* ................................ 12,300 514,386 Hercules Offshore* ................................ 18,355 423,083 Hornbeck Offshore Services* ....................... 9,190 355,469 Massey Energy ..................................... 9,340 347,261 Natural Gas Services Group* ....................... 20,924 361,985 Oil States International* ......................... 380 13,323 Parker Drilling* .................................. 43,280 300,796 Petroquest Energy* ................................ 44,023 568,777 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OFTHE FINANCIAL STATEMENTS. 4 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- COMMON STOCK - CONTINUED - -------------------------------------------------------------------------------- SHARES VALUE -------- ----------- ENERGY -- CONTINUED T-3 Energy Services, Cl 3* ........................ 9,630 $ 433,254 Western Refining .................................. 21,650 462,228 ----------- 6,127,059 ------------ FINANCIALS - 5.3% City Bank ......................................... 4,720 103,368 eHealth* .......................................... 10,030 262,686 Ezcorp, Cl A* ..................................... 40,730 537,636 FBL Financial Group, Cl A ......................... 8,079 266,203 Fpic Insurance Group* ............................. 10,600 446,366 Green Bankshares .................................. 10,600 222,070 Harleysville Group ................................ 12,272 437,497 Infinity Property & Casualty ...................... 10,533 419,951 IPC Holdings ...................................... 13,370 344,010 Platinum Underwriters Holdings .................... 15,300 516,375 ProAssurance* ..................................... 8,400 484,680 RLI ............................................... 9,400 530,160 SVB Financial Group* .............................. 7,285 352,594 United Community Banks ............................ 12,000 231,720 Western Alliance Bancorp* ......................... 3,141 50,413 ----------- 5,205,729 ----------- HEALTH CARE - 15.0% Albany Molecular Research* ........................ 45,600 490,656 Amsurg, Cl A* ..................................... 15,750 405,720 Applera - Celera Group* ........................... 14,666 224,683 BioScrip* ......................................... 33,440 259,494 Bruker BioSciences* ............................... 46,181 473,355 Cubist Pharmaceuticals* ........................... 24,000 407,760 eResearchTechnology* .............................. 46,615 453,098 Haemonetics* ...................................... 3,000 179,520 HMS Holdings* ..................................... 3,890 122,924 Hologic* .......................................... 10,786 694,187 Icon ADR* ......................................... 8,320 521,498 Illumina* ......................................... 11,036 702,993 inVentiv Health* .................................. 20,028 658,721 IRIS International* ............................... 15,720 282,017 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 5 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- COMMON STOCK - CONTINUED - -------------------------------------------------------------------------------- SHARES VALUE -------- ----------- HEALTH CARE - CONTINUED Kendle International* ............................. 12,049 $ 510,757 LHC Group* ........................................ 23,688 546,245 Martek Biosciences* ............................... 12,410 353,685 Myriad Genetics* .................................. 6,780 291,608 Natus Medical* .................................... 39,000 670,800 Obagi Medical Products* ........................... 23,215 345,439 Oculus Innovative Sciences* ....................... 35,046 152,100 Parexel International* ............................ 8,775 477,448 PDL BioPharma* .................................... 32,626 487,106 PharmaNet Development Group* ...................... 12,177 496,334 Phase Forward* .................................... 20,724 357,489 Sciele Pharma* .................................... 24,227 579,510 Somanetics* ....................................... 17,520 469,536 SurModics* ........................................ 11,520 502,963 Synovis Life Technologies* ........................ 29,230 458,911 Third Wave Technologies* .......................... 33,853 275,563 TomoTherapy* ...................................... 14,260 211,191 United Therapeutics* .............................. 6,868 576,775 Viropharma* ....................................... 42,180 373,715 Vivus* ............................................ 23,480 142,289 Zoll Medical* ..................................... 24,140 643,572 ----------- 14,799,662 ----------- INDUSTRIALS -- 13.1% AAON .............................................. 20,780 369,884 Aerovironment* .................................... 14,959 344,207 Ameron International .............................. 6,213 558,238 AZZ* .............................................. 1,012 34,175 Barnes Group ...................................... 17,583 468,587 CBIZ* ............................................. 54,188 509,909 Celadon Group* .................................... 35,005 333,948 Ceradyne* ......................................... 13,552 652,529 Columbus McKinnon* ................................ 7,990 204,304 Curtiss-Wright .................................... 10,935 455,989 Ducommun* ......................................... 11,710 370,036 Dynamic Materials ................................. 9,126 488,971 EMCOR Group* ...................................... 17,523 384,279 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 6 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- COMMON STOCK - CONTINUED - -------------------------------------------------------------------------------- SHARES VALUE -------- ----------- INDUSTRIALS - CONTINUED Encore Wire ....................................... 20,565 $ 343,024 Esterline Technologies* ........................... 11,245 523,904 Excel Maritime Carriers, Cl A ..................... 12,695 483,172 Exponent* ......................................... 11,954 368,183 Flow International* ............................... 36,947 344,346 FTI Consulting* ................................... 12,545 693,864 Furmanite* ........................................ 11,789 117,890 General Cable* .................................... 8,305 481,773 GeoEye* ........................................... 11,810 412,878 ICF International* ................................ 13,526 350,459 Integrated Electrical Services* ................... 10,977 148,519 Mobile Mini* ...................................... 9,105 138,396 Moog, Cl A* ....................................... 13,709 631,162 TBS International, Cl A* .......................... 7,815 260,318 Team* ............................................. 9,095 273,305 Teledyne Technologies* ............................ 10,665 550,634 Tennant ........................................... 14,232 469,514 TransDigm Group* .................................. 12,430 514,353 Valmont Industries ................................ 2,875 240,637 Waste Connections* ................................ 10,910 318,136 Waste Industries USA .............................. 59 2,134 ----------- 12,841,657 ----------- INFORMATION TECHNOLOGY - 24.1% Actuate* .......................................... 59,901 341,436 Adtran ............................................ 14,415 299,976 Advanced Analogic Technologies* ................... 54,830 369,554 Aladdin Knowledge Systems* ........................ 16,798 354,606 Anadigics* ........................................ 30,360 303,296 Ansys* ............................................ 19,459 679,314 Art Technology Group* ............................. 67,420 270,354 Aspen Technology* ................................. 35,127 493,534 Atheros Communications* ........................... 16,815 459,218 Avici Systems ..................................... 59,700 408,348 Bankrate* ......................................... 6,740 365,510 Blue Coat Systems* ................................ 15,787 424,197 BluePhoenix Solutions* ............................ 38,892 579,880 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 7 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- COMMON STOCK - CONTINUED - -------------------------------------------------------------------------------- SHARES VALUE -------- ----------- INFORMATION TECHNOLOGY - CONTINUED Bottomline Technologies* .......................... 41,355 $ 535,961 Cavium Networks* .................................. 11,180 213,650 Ceragon Networks* ................................. 37,338 339,402 Cogent* ........................................... 45,365 447,299 Comtech Telecommunications* ....................... 13,155 589,344 Cybersource* ...................................... 27,100 453,925 Digital River* .................................... 13,060 489,750 Emcore* ........................................... 15,550 212,568 EPIQ Systems* ..................................... 22,718 335,090 Euronet Worldwide* ................................ 17,580 464,815 FalconStor Software* .............................. 44,499 392,481 FARO Technologies* ................................ 17,175 410,139 Flir Systems* ..................................... 15,520 469,946 Foundry Networks* ................................. 37,920 523,296 GigaMedia* ........................................ 27,475 479,439 Globecomm Systems* ................................ 25,420 238,185 Hutchinson Technology* ............................ 25,616 403,964 InterVoice* ....................................... 48,615 315,997 Interwoven* ....................................... 42,366 536,777 Jack Henry & Associates ........................... 16,805 413,067 Macrovision* ...................................... 8,281 139,038 Manhattan Associates* ............................. 14,250 353,258 Mantech International, Cl A* ...................... 9,070 370,963 Mentor Graphics* .................................. 14,629 120,689 Methode Electronics ............................... 28,390 344,087 Microsemi* ........................................ 17,500 397,600 MicroStrategy, Cl A* .............................. 6,610 482,001 Netlogic Microsystems* ............................ 12,825 333,450 Nice Systems ADR* ................................. 8,937 273,562 Nuance Communications* ............................ 24,155 383,823 Omniture* ......................................... 13,340 329,765 Oplink Communications* ............................ 29,744 379,831 Pericom Semiconductor* ............................ 25,956 351,963 Progress Software* ................................ 15,916 469,840 Quest Software* ................................... 35,486 530,516 Radiant Systems* .................................. 39,322 478,156 Rogers* ........................................... 11,591 361,755 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 8 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- COMMON STOCK - CONTINUED - -------------------------------------------------------------------------------- SHARES VALUE -------- ----------- INFORMATION TECHNOLOGY - CONTINUED Secure Computing* ................................. 49,805 $ 445,755 Semtech* .......................................... 19,712 251,722 Shanda Interactive Entertainment ADR* 15,540 427,195 SPSS* ............................................. 15,089 498,691 Standard Microsystems* ............................ 10,277 307,488 Synaptics* ........................................ 7,076 187,514 Taleo, Cl A* ...................................... 22,143 467,882 TriQuint Semiconductor* ........................... 56,891 269,663 Ultimate Software Group* .......................... 17,417 471,130 Vocus* ............................................ 16,748 492,726 Zoran* ............................................ 13,832 163,218 ----------- 23,697,599 ----------- MATERIALS - 2.9% Aptargroup ........................................ 12,269 462,787 HB Fuller ......................................... 15,105 313,580 ICO* .............................................. 30,435 294,915 Kaiser Aluminum ................................... 5,640 360,734 Landec* ........................................... 32,500 302,900 Schnitzer Steel Industries, Cl A .................. 7,020 397,753 Sensient Technologies ............................. 18,529 492,130 Universal Stainless & Alloy* ...................... 9,916 245,322 ----------- 2,870,121 ----------- TELECOMMUNICATION SERVICES - 0.5% Cbeyond* .......................................... 15,240 514,198 ----------- TOTAL COMMON STOCK (Cost $85,563,821) .............................. 81,718,954 ----------- - -------------------------------------------------------------------------------- EXCHANGE TRADED FUND - 1.7% - -------------------------------------------------------------------------------- iShares Russell 2000 Growth Index Fund (Cost $1,763,376) ............................... 22,200 1,686,756 ----------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 9 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- SHORT-TERM INVESTMENT - 0.4% - -------------------------------------------------------------------------------- SHARES VALUE -------- ----------- CASH EQUIVALENT -- 0.4% Union Bank of California Money Market, 4.350% (A) (Cost $420,973) .............. 420,973 $ 420,973 ----------- TOTAL INVESTMENTS-- 85.2% (Cost $87,748,170) .............................. $83,826,683 =========== PERCENTAGES ARE BASED ON NET ASSETS OF $98,364,911. * NON-INCOME PRODUCING SECURITY. ** MORE NARROW INDUSTRIES ARE UTILIZED FOR COMPLIANCE PURPOSES, WHEREAS BROAD SECTORS ARE UTILIZED FOR REPORTING PURPOSES. (A) THE RATE SHOWN IS THE 7-DAY SIMPLE YIELD AS OF JANUARY 31, 2008. ADR -- AMERICAN DEPOSITARY RECEIPT CL -- CLASS THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 10 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- STATEMENT OF ASSETS AND LIABILITIES - -------------------------------------------------------------------------------- ASSETS: Investments at Value (Cost $87,748,170) .................... $ 83,826,683 Receivable for Capital Shares Sold ......................... 14,472,205 Receivable for Investment Securities Sold .................. 1,497,392 Prepaid Expenses ........................................... 14,889 Dividends Receivable ....................................... 8,022 ----------- TOTAL ASSETS 99,819,191 ----------- LIABILITIES: Payable for Investment Securities Purchased ................ 1,193,468 Payable for Capital Shares Redeemed ........................ 152,618 Payable due to Investment Adviser .......................... 33,398 Payable due to Administrator ............................... 9,767 Payable due to Trustees .................................... 3,055 Chief Compliance Officer Fees Payable ...................... 1,765 Other Accrued expenses ..................................... 60,209 ------------ TOTAL LIABILITIES ...................................... 1,454,280 ------------ NET ASSETS ..................................................... $ 98,364,911 ============ NET ASSETS CONSIST OF: Paid-in Capital ............................................ $106,426,464 Accumulated Net Investment Loss ............................ (302,810) Accumulated Net Realized Loss on Investments ............... (3,837,256) Net Unrealized Depreciation on Investments ................. (3,921,487) ------------ NET ASSETS ..................................................... $ 98,364,911 ============ Net Asset Value, Offering and Redemption Price Per Share - (unlimited authorization -- no par value) Investor Class ($98,364,911 / 9,413,052) ................... $ 10.45 ============ THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 11 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND FOR THE PERIOD ENDED JANUARY 31, 2008 (UNAUDITED) ================================================================================ - -------------------------------------------------------------------------------- STATEMENT OF OPERATIONS - -------------------------------------------------------------------------------- INVESTMENT INCOME Dividend Income ................................................ $ 159,691 ------------ TOTAL INVESTMENT INCOME ................................ 159,691 ------------ EXPENSES Investment Advisory Fees ....................................... 324,657 Administration Fees ............................................ 48,452 Shareholder Servicing Fees -- Investor Class .................... 17,964 Chief Compliance Officer Fees .................................. 4,540 Trustees' Fees ................................................. 3,321 Transfer Agent Fees ............................................ 104,722 Legal Fees ..................................................... 16,606 Registration Fees .............................................. 10,756 Offering Costs (See Note 2) .................................... 10,318 Audit Fees ..................................................... 10,137 Printing Fees .................................................. 7,564 Custodian Fees ................................................. 2,535 Insurance and Other Expenses ................................... 3,848 ------------ TOTAL EXPENSES5 565,420 ------------ Less: Waiver of Investment Advisory Fees ....................... (88,029) Fees Paid Indirectly (See Note 4) ........................ (14,890) ------------ NET EXPENSES ................................................. 462,501 ------------ NET INVESTMENT LOSS ............................................ (302,810) ------------ NET REALIZED LOSS ON INVESTMENTS ............................... (3,750,053) NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS .............................................. (4,346,324) ------------ NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS ................ (8,096,377) ------------ NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ........... $ (8,399,187) ============ THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 12 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ - -------------------------------------------------------------------------------- STATEMENT OF CHANGES IN NET ASSETS - --------------------------------------------------------------------------------
SIX MONTHS ENDED PERIOD JANUARY 31, ENDED 2008 JULY 31, (UNAUDITED) 2007* ------------ ------------ OPERATIONS: Net Investment Loss .................................................. $ (302,810) $ (220,805) Net Realized Gain (Loss) on Investments .............................. (3,750,053) 1,036,779 Net Change in Unrealized Appreciation (Depreciation) on Investments .................................................... (4,346,324) 424,837 ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS ......................................... (8,399,187) 1,240,811 ------------ ------------ DISTRIBUTIONS: Net Realized Gain .................................................... (903,177) -- ------------ ------------ CAPITAL SHARE TRANSACTIONS(1): INVESTOR SHARES Issued ............................................................... 61,172,084(2) 54,788,386(2) Reinvestment of Distributions ........................................ 891,668 -- Redeemed ............................................................. (7,496,168) (2,929,606) ------------ ------------ NET INCREASE IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS .......... 54,567,684 51,858,780 ------------ ------------ TOTAL INCREASE IN NET ASSETS ..................................... 45,265,320 53,099,591 ------------ ------------ NET ASSETS: Beginning of Period ...................................................... 53,099,591 -- ------------ ------------ End of Period ............................................................ $ 98,364,911 $ 53,099,591 ============ ============ Accumulated Net Investment Loss .......................................... $ (302,810) $ -- ============ ============
(1) FOR SHARE TRANSACTIONS, SEE NOTE 6 IN THE NOTES TO FINANCIAL STATEMENTS. (2) INCLUDES SUBSCRIPTIONS AS A RESULT OF AN IN-KIND TRANSFER OF SECURITIES (SEE NOTE 8). * COMMENCED OPERATIONS ON SEPTEMBER 29, 2006. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 13 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ - -------------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- SELECTED PER SHARE DATA & RATIOS FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD
SIX MONTHS ENDED PERIOD JANUARY 31, ENDED 2008 JULY 31, (UNAUDITED) 2007* --------- --------- Net Asset Value, Beginning of Period ......................... $ 11.49 $ 10.00 --------- --------- Income from Operations: Net Investment Loss(1) ................................... (0.05) (0.08)(2) Net Realized and Unrealized Loss on Investments .......... (0.86) 1.57 (2) --------- --------- Total from Operations ........................................ (0.91) 1.49 --------- --------- Distributions: Net Realized Gain ........................................ (0.13) -- --------- --------- Net Asset Value, End of Period ............................... $ 10.45 $ 11.49 ========= ========= TOTAL RETURN+ ............................................ (8.03)% 14.90% ========= ========= RATIOS AND SUPPLEMENTAL DATA Net Assets, End of Period (Thousands) ........................ $ 98,365 $ 53,100 Ratio of Expenses to Average Net Assets (including waivers, excluding fees paid indirectly) ........................... 1.32%** 1.38%** Ratio of Expenses to Average Net Assets (including waivers and fees paid indirectly) ................................. 1.28%** 1.29%** Ratio of Expenses to Average Net Assets (excluding waivers and fees paid indirectly) ................................. 1.57%** 2.11%** Ratio of Net Investment Loss to Average Net Assets ........... (0.84)%** (0.79)%** Portfolio Turnover Rate ...................................... 82% 88%++
+ TOTAL RETURN IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED. TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN WAIVED BY THE ADVISER DURING THE PERIOD. THE RETURN SHOWN DOES NOT REFLECT THE DEDUCTION OF TAXES THAT A SHAREHOLDER WOULD PAY ON FUND DISTRIBUTIONS OR THE REDEMPTION OF FUND SHARES. ++ PORTFOLIO TURNOVER RATE IS FOR THE PERIOD INDICATED AND HAS NOT BEEN ANNUALIZED. EXCLUDES EFFECT OF IN-KIND TRANSFER. * COMMENCED OPERATIONS ON SEPTEMBER 29, 2006. ** ANNUALIZED. (1) PER SHARE DATA CALCULATED USING AVERAGE SHARES METHOD. (2) THIS AMOUNT IS INCONSISTENT WITH THE FUND'S AGGREGATE NET INCOME, GAINS AND LOSSES BECAUSE OF THE TIMING OF SALES AND REDEMPTION OF FUND SHARES IN RELATION TO FLUCTUATING MARKET VALUES FOR THE INVESTMENT PORTFOLIO. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. 14 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ - -------------------------------------------------------------------------------- NOTES TO FINANCIAL STATEMENTS (UNAUDITED) - -------------------------------------------------------------------------------- 1. ORGANIZATION: THE ADVISORS' INNER CIRCLE FUND II (the "Trust") is organized as a Massachusetts business trust under an Amended and Restated Agreement and Declaration of Trust dated July 24, 1992. The Trust is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company with fourteen funds. The financial statements herein are those of the Perimeter Small Cap Growth Fund (the "Fund"). The financial statements of the remaining funds are presented separately. The investment objective of the Fund is to seek long-term capital appreciation. The Fund invests primarily (at least 80% of its net assets) in small-cap equity securities. The assets of each fund of the Trust are segregated, and a shareholder's interest is limited to the fund in which shares are held. At January 31, 2008, the Fund was comprised of Investor Shares and Institutional Shares. Institutional Class Shares were seeded but had not yet commenced operations as of January 31, 2008. 2. SIGNIFICANT ACCOUNTING POLICIES: The following is a summary of the significant accounting policies followed by the Fund: USE OF ESTIMATES -- The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. SECURITY VALUATION -- Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded, or, if there is no such reported sale, at the most recent quoted bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used. Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Trust's Board of Trustees (the "Board"). The Trust's Fair Value Procedures are implemented through a Fair Value Committee (the "Committee") desig- 15 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ nated by the Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security's trading has been halted or suspended; the security has been delisted from a national exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security's primary pricing source is not able or willing to provide a price; or trading of the security is subject to local government-imposed restrictions. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. As of January 31, 2008, there were no fair valued securities. SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sales of investment securities are based on specific identifications. Dividend income is recognized on the ex-dividend date and interest income is recognized on an accrual basis. EXPENSES -- Most expenses of the Trust can be directly attributed to a particular fund. Expenses that cannot be directly attributed to a fund are apportioned among the funds of the Trust based on the number of funds and/or relative net assets. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income, if any, are declared and paid annually by the Fund. Any net realized capital gains are distributed to shareholders at least annually. ORGANIZATION AND OFFERING COSTS -- Organization costs of the Fund, which commenced operations on September 29, 2006, have been expensed as incurred. Offering costs, including costs of printing initial prospectuses and registration fees, were amortized to expense over twelve months beginning with inception. As of January 31, 2008, organization costs have been fully amortized. REDEMPTION FEES -- The Fund retains a redemption fee of 2% on redemptions of Fund shares held less than seven days. For the period ended January 31, 2008, there were no redemptions fees retained by the Fund. 3. TRANSACTIONS WITH AFFILIATES: Certain officers and a trustee of the Trust are also officers of SEI Investments Global Funds Services (the "Administrator"), a wholly owned subsidiary of SEI Investments Company, and/or SEI Investments Distribution Co. (the "Distributor"). Such officers are paid no fees by the Trust for serving as officers of the Trust. 16 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ The services provided by the Chief Compliance Officer ("CCO") and his staff, whom are employees of the Administrator, are paid for by the Trust as incurred. The services include regulatory oversight of the Trust's Advisors and service providers as required by SEC regulations. The CCO's services have been approved by and are reviewed by the Board. 4. ADMINISTRATION, TRANSFER AGENT AND CUSTODIAN AGREEMENTS: The Fund and the Administrator are parties to an Administration Agreement under which the Administrator provides management and administrative services to the Fund at an annual rate of: 0.10% on the first $250 million of the Fund's average daily net assets; 0.08% on the next $250 million of the Fund's average daily net assets; and 0.06% on the Fund's average daily net assets over $500 million. The Fund is subject to a minimum annual administration fee of $80,000 for the Fund's first year of operations and $100,000 per year thereafter. There is also a minimum annual administration fee of $15,000 per additional class. DST Systems, Inc. serves as the transfer agent and dividend disbursing agent for the Fund under a transfer agency agreement with the Trust. The Fund may earn cash management credits which can be used to offset transfer agent expenses. During the six months ended January 31, 2008, the Fund earned credits of $14,890, which were used to offset transfer agent expenses. This amount is listed as "Fees Paid Indirectly" on the Statement of Operations. Union Bank of California, N.A. Bank acts as custodian (the "Custodian") for the Fund. The Custodian plays no role in determining the investment policies of the Fund or which securities are to be purchased or sold by the Fund. 5. INVESTMENT ADVISORY AGREEMENT: Perimeter Capital Management, LLC (the "Adviser") serves as the investment adviser to the Fund. For its services, the Adviser is entitled to a fee, which is calculated daily and paid monthly, at an annual rate of 0.90% of the Fund's average daily net assets. Effective January 1, 2008, the Adviser has voluntarily agreed to limit the total expenses of the Institutional Shares and Investor Shares of the Fund (excluding interest, taxes, brokerage commissions and extraordinary expenses) to 1.00% and 1.25% of the Fund's average daily net assets, respectively. Prior to January 1, 2008, the Adviser had voluntarily agreed to limit the total expenses of the Investor Shares to 1.29% of the Fund's average daily net assets. To maintain this expense limitation, the Adviser may waive a portion of its advisory fee and/or reimburse certain expenses of the Fund. The Adviser intends to continue its voluntary expense limitation until further notice, 17 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ but may discontinue it at any time. If at any point it becomes unnecessary for the Adviser to make expense limitation reimbursements, the Adviser may retain the difference between the "Total Annual Fund Operating Expenses" and the respective share class expense limitations to recapture all or a portion of its prior expense limitation reimbursements made during the preceding three-year period. At January 31, 2008, the amount the Adviser may seek as reimbursement of previously waived fees and reimbursed expenses for the Fund was $292,720. 6. SHARE TRANSACTIONS:
SIX MONTHS ENDED PERIOD JANUARY 31, ENDED 2008 JULY 31, (UNAUDITED) 2007* ---------- ---------- SHARE TRANSACTIONS: INVESTOR SHARES Issued ................................................................... 5,379,202(1) 4,868,357(1) Reinvestment of Distributions ............................................ 76,934 -- Redeemed ................................................................. (662,755) (248,686) ---------- ---------- TOTAL INCREASE IN SHARES OUTSTANDING FROM SHARE TRANSACTIONS ........................................ 4,793,381 4,619,671 ========= =========
(1) INCLUDES SUBSCRIPTIONS AS A RESULT OF AN IN-KIND TRANSFER OF SECURITIES (SEE NOTE 8). * COMMENCED OPERATIONS ON SEPTEMBER 29, 2006. 7. INVESTMENT TRANSACTIONS: The cost of security purchases and the proceeds from security sales, other than long-term U.S. Government and short-term investments, for the period ended January 31, 2008 were $97,498,780 and $58,264,231, respectively. There were no purchases or sales of long-term U.S. Government securities. 8. FEDERAL TAX INFORMATION: It is the Fund's intention to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and to distribute all of its taxable income. Accordingly, no provision for Federal income taxes has been made in the financial statements. 18 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ The amount and character of income and capital gain distributions, if any, to be paid, are determined in accordance with Federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These differences are primarily due to differing book and tax treatments in the timing of recognition of gains or losses on investments. Permanent book and tax differences, if any, may result in reclassifications to undistributed net investment income (loss), accumulated net realized gain (loss) and paid-in capital. As of July 31, 2007, the components of Distributable Earnings were as follows: Undistributed Ordinary Income .................................. $ 903,173 Unrealized Appreciation ........................................ 337,638 ---------- Total Distributable Earnings ................................... $1,240,811 ========== The Federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Fund at January 31, 2008 were as follows: AGGREGATE GROSS AGGREGATE GROSS FEDERAL UNREALIZED UNREALIZED NET UNREALIZED TAX COST APPRECIATION DEPRECIATION DEPRECIATION ----------- --------------- --------------- -------------- $87,748,170 $5,501,101 $(9,422,588) $(3,921,487) 9. IN-KIND TRANSFERS: During the period ended July 31, 2007 and the six months ended January 31, 2008, the Fund issued shares of beneficial interest in exchange for securities. These securities were transferred at their then current value on the date of the transaction. TRANSACTION DATE SHARES ISSUED VALUE ---------------- ------------- --------- 09/29/06* 25,799 $ 257,990 12/17/07 413,007 4,592,639 * THESE SECURITIES WERE TRANSFERRED IN-KIND ON THE DATE THE FUND COMMENCED OPERATIONS. 10. OTHER: In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be established; however, based on experience, the risk of loss from such claims is considered remote. 19 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ 11. NEW ACCOUNTING PRONOUNCEMENT: On July 13, 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 defines the threshold for recognizing the benefits of tax-return positions in the financial statements as "more-likely-than-not" to be sustained by the applicable taxing authority and requires measurement of a tax position meeting the "more-likely-than-not" threshold, based on the largest benefit that is more than 50 percent likely to be realized. FIN 48 is effective as of the beginning of the first fiscal year beginning after December 15, 2006 (January 1, 2007 for calendar-year companies), with early application permitted if no interim financial statements have been issued. At adoption, companies must adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained as of the adoption date. Based on its analysis, management has determined that the adoption of FIN 48 did not have a material impact to the Fund's financial statements upon adoption. However, management's conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance expected from the FASB, and on-going analyses of and changes to tax laws, regulations and interpretations thereof. In September 2006, the FASB issued Statement on Financial Accounting Standards ("SFAS") No. 157, "Fair Value Measurements." This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. The changes to current generally accepted accounting principles from the application of this Statement relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurements. As of January 31, 2008, the Fund does not believe the adoption of SFAS No. 157 will impact the amounts reported in the financial statements, however, additional disclosures may be required about the inputs used to develop the measurements and the effect of certain measurements reported on the statement of changes in net assets for a fiscal period. 20 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ - -------------------------------------------------------------------------------- DISCLOSURE OF FUND EXPENSES (UNAUDITED) - -------------------------------------------------------------------------------- All mutual funds have operating expenses. As a shareholder of a mutual fund, your investment is affected by these ongoing costs, which include (among others) costs for portfolio management, administrative services, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. Operating expenses such as these are deducted from a mutual fund's gross income and directly reduce its final investment return. These expenses are expressed as a percentage of a mutual fund's average net assets; this percentage is known as a mutual fund's expense ratio. The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period. The table on the following page illustrates your Fund's costs in two ways: o ACTUAL FUND RETURN. This section helps you to estimate the actual expenses after fee waivers that your Fund incurred over the period. The "Expenses Paid During Period" column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the "Ending Account Value" number is derived from deducting that expense cost from the Fund's gross investment return. You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under "Expenses Paid During Period." o HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with those of other mutual funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund's comparative cost by comparing the hypothetical result for your Fund in the "Expenses Paid During Period" column with those that appear in the same charts in the shareholder reports for other mutual funds. 21 THE ADVISORS' INNER CIRCLE FUND II PERIMETER SMALL CAP GROWTH FUND ================================================================================ - -------------------------------------------------------------------------------- DISCLOSURE OF FUND EXPENSES (UNAUDITED) - -------------------------------------------------------------------------------- NOTE: Because the hypothetical return is set at 5% for comparison purposes -- NOT your Fund's actual return -- the account values shown may not apply to your specific investment.
- -------------------------------------- ---------------------- ---------------------- --------------------- -------------------- BEGINNING ENDING EXPENSES ACCOUNT ACCOUNT ANNUALIZED PAID VALUE VALUE EXPENSE DURING 08/01/07 01/31/08 RATIOS PERIOD* - ------------------------------------------------------------- ---------------------- --------------------- -------------------- PERIMETER SMALL CAP GROWTH FUND -- INVESTOR CLASS - -------------------------------------- ---------------------- ---------------------- --------------------- -------------------- ACTUAL FUND RETURN $1,000.00 $ 919.70 1.28% $6.19 HYPOTHETICAL 5% RETURN 1,000.00 1,018.75 1.28 6.51 - -------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). 22 [This page intentionally left blank.] [This page intentionally left blank.] ADVISER: Perimeter Capital Management, LLC Five Concourse Parkway Suite 2725 Atlanta, GA 30328 DISTRIBUTOR: SEI Investments Distribution Co. Oaks, PA 19456 ADMINISTRATOR: SEI Investments Global Funds Services One Freedom Valley Drive Oaks, PA 19456 LEGAL COUNSEL: Morgan, Lewis & Bockius LLP 1111 Pennsylvania Ave., N.W. Washington, DC 20004 INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM: Ernst & Young, LLP Two Commerce Square 2001 Market Street, Suite 4000 Philadelphia, PA 19103 This information must be preceded or accompanied by a current prospectus for the Fund. PCM-SA-001-0200 ITEM 2. CODE OF ETHICS. Not applicable for semi-annual report. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Not applicable for semi-annual report. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable for semi-annual report. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to open-end management investment companies. ITEM 6. SCHEDULE OF INVESTMENTS. Not applicable. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to open-end management investment companies. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable. Effective for closed-end management investment companies for fiscal years ending on or after December 31, 2005 ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to open-end management investment companies. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 11. CONTROLS AND PROCEDURES. (a) The certifying officers, whose certifications are included herewith, have evaluated the registrant's disclosure controls and procedures within 90 days of the filing date of this report. In their opinion, based on their evaluation, the registrant's disclosure controls and procedures are adequately designed, and are operating effectively to ensure, that information required to be disclosed by the registrant in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. (b) There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting. ITEMS 12. EXHIBITS. (a)(1) Not applicable for semi-annual report. (a)(2) A separate certification for the principal executive officer and the principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith. (b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an Exhibit. - -------------------------------------------------------------------------------- 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) The Advisors' Inner Circle Fund II By (Signature and Title)* \s\ James F. Volk ------------------------ James F. Volk, President Date April 7, 2008 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\ James F. Volk ------------------------ James F. Volk, President Date April 7, 2008 By (Signature and Title)* \s\ Michael Lawson ---------------------------------- Michael Lawson, Controller and CFO Date April 7, 2008 * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 ex-cert.txt CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, James F. Volk, certify that: 1. I have reviewed this report on Form N-CSR of The Advisors' Inner Circle Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: April 7, 2008 \s\ James F. Volk ------------------------------ James F. Volk President CERTIFICATION Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 I, Michael Lawson, certify that: 1. I have reviewed this report on Form N-CSR of The Advisors' Inner Circle Fund II; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940)for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: April 7, 2008 \s\ Michael Lawson ------------------------- Michael Lawson Controller and CFO EX-99.906CERT 3 ex-906.txt CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the President of The Advisors' Inner Circle Fund II (the "Fund"), with respect to the Fund's Form N-CSR for the period ended January 31, 2008 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: April 7, 2008 \s\ James F. Volk ----------------- James F. Volk, President CERTIFICATION Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 The undersigned, the Controller and CFO of The Advisors' Inner Circle Fund II (the "Fund"), with respect to the Fund's Form N-CSR for the period ended January 31, 2008 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge: 1. such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2. the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Fund. Dated: April 7, 2008 \s\ Michael Lawson ------------------ Michael Lawson, Controller and CFO -----END PRIVACY-ENHANCED MESSAGE-----